New 12 lakh MT Namrup project sparks fresh fear of closure among BVFCL staff

Employees of the Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) have expressed deep concern over the future of the company, even as a new 12 lakh MT fertiliser plant is set to be established on its premises at Namrup in Assam’s Dibrugarh district.

Workers allege that the government is “in the process of closing down BVFCL”, pointing to a series of high-level meetings held this month to advance an earlier decision to shut down or disinvest several central public sector enterprises (CPSEs).

Responding to the employees’ apprehensions, BVFCL Chairman-cum-Managing Director Mohan Raj Shetty told PTI that the company is now showing “positive results” due to improved performance. “It is an old order of 2022. A meeting was called at the secretary level, though we were not invited,” he said.

Shetty added that BVFCL’s financial condition has improved this year. “Our quarterly and half-yearly results are positive. It has helped immensely,” he said.

Employee concerns escalated after the Department of Fertilisers issued a letter to BVFCL on November 13, stating that the Department of Public Enterprises is preparing a note seeking “in-principle” approval from the Cabinet Committee on Economic Affairs (CCEA) regarding CPSEs marked for closure or disinvestment. BVFCL, recommended for closure on August 12, 2022, features on that list.

The letter also sought detailed information on the corporation’s three units — Namrup I, II and III — including commissioning dates, production records and any data related to closure or disinvestment. Information regarding the proposed Namrup IV unit was also requested.

Prime Minister Narendra Modi is expected to lay the foundation stone for the new fourth unit in December. The facility is being developed as a separate joint venture company, Assam Valley Fertilizer and Chemical Company Ltd (AVFCCL), incorporated in July 2025, with stakeholders including the Assam government, Oil India Ltd, NFL, HURL and BVFCL.

However, employees say the Centre is sending mixed signals. “The government is speaking in two voices. On one hand, there are assurances about Namrup-IV; on the other, they are secretly preparing a dossier for closure,” said Tileswar Bora, president of the Namrup Fertiliser Protection United Forum.

BVFCL, under the Ministry of Chemicals and Fertilisers, was created in 2002 after the separation of Namrup units from Hindustan Fertilizer Corporation Ltd. Namrup-I, commissioned in 1969, is already scrapped. Namrup II, commissioned in 1976, has remained shut since January 2020 following two major technical failures. Namrup III, commissioned in 1987, continues to operate at about 80 per cent capacity despite outdated technology, scarce spare parts and high maintenance requirements. It currently produces around 2 lakh MT of fertiliser annually.

“The Namrup III plant is the only unit producing urea in the Northeast, but its condition is poor. We request Prime Minister Narendra Modi to intervene and revive the industry. If things continue like this, the third plant may also shut down soon,” Bora warned.

Adding to employee anxiety, two major recruitment drives — one for management trainees and another for multiple technical posts, including boiler attendants and technicians — have been put “on hold until further orders”.
“This is the clearest signal yet. Why freeze hiring for critical posts if the plant has a future? They are starving the company of manpower, and later they will cite it as a reason to call the unit unviable,” Bora, who also advises the Namrup Fertiliser Labour Union, alleged.

Despite the growing fears, CMD Shetty urged optimism. “We should keep up the tempo to keep our hopes alive. We are performing and will end with positive results,” he said.