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# Brahmaputra Valley Fertilizer Corporation requests 40% subsidy on natural gas amid financial turbulence

Publication Date: 29.07.2024, 12:00

The Namrup Fertilizer Shramik Union is advocating for a significant natural gas subsidy for the BVFCL facility in Dibrugarh, citing economic struggles and reduced urea production.

Namrup Fertilizer Shramik Union (NFSU) has made a strong call for a 40% subsidy on natural gas for the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) based in the city of Namrup, India, aligning with the subsidy norms for industrial units in India’s northeastern region. This demand was articulated during a press conference held on Thursday.

The union highlighted that BVFCL, despite its efforts, is facing severe financial difficulties owing to an outstanding debt of 2.25 billion Indian Rupee ($26,88 million) to Oil India Limited (OIL) for natural gas purchases. These financial challenges have forced the plant to operate only one of its three units, substantially reducing its urea production capacity.

Tileswar Borah, the chief adviser of NFSU, emphasized the plant’s dire situation, which has resulted in a reported loss of 8 billion Indian Rupees ($95.55 million). According to Borah, there is a commitment to invest 5 billion Indian Rupees ($59.71 million) in constructing two new nano-urea plants at BVFCL Namrup, which has revitalized hopes for the facility’s future.

Banikanta Gogoi, NFSU president, pressed the central government to expedite the establishment of these new plants and urged a financial restructuring of BVFCL. Gogoi pointed out that despite providing the cheapest urea in the country, diminished production levels have made it difficult for BVFCL to satisfy the existing demand.

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