Ahead of Prime Minister Narendra Modi’s visit to Namrup on December 21, a crucial Memorandum of Understanding on land use rights was signed on Monday between Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) and Assam Valley Fertilizer & Chemical Company Limited (AVFCCL). The agreement paves the way for the Rs 11,000-crore fertiliser project, whose foundation stone the Prime Minister will lay during his visit.
The MoU was signed at the Conference Hall of BVFCL, Namrup, formalising the understanding between BVFCL as the Grantor and AVFCCL as the Acceptor for granting land-use rights. The agreement enables preparatory and pre-project activities for the proposed Ammonia-Urea Complex at Namrup, outlining the framework for access, use and management of the identified land.
The signing ceremony was conducted in the presence of Mohan Raj Shetty, Chairman & Managing Director of BVFCL, and Siba Prasad Mohanty, Managing Director of AVFCCL, along with representatives from both organisations. Senior officials from Projects & Development India Limited (PDIL), the implementing partner of the AVFCCL project, also attended the occasion.
Speaking about the agreement, Mohan Raj Shetty said, “This MoU marks a significant milestone in our collaborative effort to establish a world-class fertiliser facility in Namrup. It sets out the respective roles, responsibilities and safeguards agreed between both companies as we move towards implementation of this transformative project.”
Siba Prasad Mohanty added, “The land rights agreement enables us to commence pre-project activities immediately. This facility will revolutionise fertiliser availability in North Eastern India and provide substantial benefits to the farming community across the region.”
AVFCCL, incorporated on July 25, 2025, represents a collaborative effort with the Government of Assam holding the largest equity stake at 40 per cent, alongside National Fertilizers Limited, Oil India Limited, Hindustan Urvarak & Rasayan Limited, and BVFCL as partners.
The ambitious Ammonia-Urea complex is designed with an annual production capacity of 12.7 lakh metric tonnes, aimed at meeting the fertiliser requirements of farmers across Assam and neighbouring states. Officials expect the facility to ensure timely availability of fertilisers whilst potentially reducing input costs for the agricultural community.
Once established, the AVFCCL facility is expected to become the largest urea-producing unit in North Eastern India, significantly strengthening fertiliser availability in the region, supporting farmers, and contributing to industrial and economic growth in Assam and the North Eastern states.
