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Press Release

NAMRUP PLANT REVAMP COST OVER-RUN RS.160 CRORE

The revamping of the Namrup Units in Assam, in the Fertilizers Sector has reported a cost over-run of nearly Rs.160 crore and a time delay of 34 months. The latest completion date expired on the 31st of last month. As per a report of the Ministry of Statistics and Programme Implementation, which is monitoring the central major and mega projects costing Rs.100 crore and above, the physical progress achieved by Namrup in September was nearly 97 per cent.

The only Fertilizer project under Central Monitoring, the Namrup Revamping was taken over by a new zero-loss company called the Bhramaputra Valley Fertilizers Corporation Ltd. Falling under category B rating, the delay in commissioning of the project, was attributed mainly to slow progress of erection, delay in supply of spares and some equipment.

The project approved in October 1997 at a capital cost of Rs.350 crore, was originally scheduled to be completed in May 2001. Later, the date of commissioning was revised to February 2002 with a cost escalation of nearly Rs.159.40 crore. Having almost achieved the physical target, with the latest date of completion expiring last month, an expenditure of nearly Rs.444 crore has so far been incurred on the project. When commissioned, the revamped Namrup Plant will produce five lakh fifty five thousand metric tonnes of fertilizers per annum.

It may be noted that the Namrup-II Plant has not been in operation, for the last ten years.