Employees Voice Concerns as New Fertilizer Plant is Announced

Employees of the Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) have expressed significant concerns regarding their future as plans to establish a new 1.2 million MT fertilizer plant are underway at the existing site in Namrup, located in Assam’s Dibrugarh district. These apprehensions arise amidst reports that the government may be considering the closure or disinvestment of BVFCL, following high-level meetings earlier this month aimed at advancing an earlier decision affecting several central public sector enterprises (CPSEs).

In response to employee worries, BVFCL’s Chairman and Managing Director Mohan Raj Shetty indicated a positive outlook for the corporation. He stated, “Our performance has turned around this year. Quarterly and half-yearly results are positive.” Despite not being invited to recent meetings, Shetty emphasized that the corporation’s improved performance would lead to favorable outcomes.

The employees’ fears were amplified by a letter from the Department of Fertilisers dated November 13, 2023, which mentioned the Department of Public Enterprises’ ongoing preparations for a note seeking “in-principle” approval from the Cabinet Committee on Economic Affairs (CCEA). This note is expected to address CPSEs identified for closure or disinvestment, with BVFCL being among those listed following a recommendation made on August 12, 2022.

Information requested in the letter pertains to BVFCL’s fertilizer units—Namrup I, II, and III—including details on their commissioning dates and production capacities. Notably, the Namrup IV plant is slated for foundation laying by Prime Minister Narendra Modi in December 2023. This new facility is being developed as a separate entity called the Assam Valley Fertilizer and Chemical Company Ltd (AVFCCL), established as a joint venture in July 2025 involving the Assam government, Oil India Limited, National Fertilizers Limited (NFL), Hindustan Urvarak and Rasayan Limited (HURL), and BVFCL.

Concerns regarding mixed signals from the government were voiced by Tileswar Bora, president of the Namrup Fertiliser Protection United Forum. He remarked, “The government is speaking in two voices. On one hand, there are occasional assurances about Namrup-IV, and on the other, they are secretly compiling a dossier for closure.”

BVFCL, which operates under the Ministry of Chemicals and Fertilisers, was established on April 5, 2002, after the segregation of Namrup units from the Hindustan Fertilizer Corporation Limited (HFCL). The original plant, Namrup-I, commenced operations in January 1969 but is now inactive. The second unit, Namrup II, began commercial production on October 1, 1976, but has been shut down since January 2020 due to operational failures. The third unit, Namrup III, which started production in 1987, is currently functioning at approximately 80 percent capacity; however, it faces challenges due to outdated technology and difficulties in sourcing replacement parts.

Bora emphasized the urgency for intervention by Prime Minister Modi, stating, “The BVFCL third plant is the only unit producing urea in the North East, but its condition is not good. If it remains like this, the third plant will also be shut down soon.”

The situation has further escalated with the decision to freeze two major recruitment drives, which has left employees feeling uncertain about the company’s future. Recruitment efforts for management trainees and technical positions, including boiler attendants and technicians, have been suspended “until further orders.” Bora pointed out, “This is the clearest signal yet. Why has hiring for critical positions been frozen if the plant has a future?”

Despite the challenges facing BVFCL, Mohan Raj Shetty urged employees to maintain hope. He stated, “We should keep up the tempo to keep our hopes alive. We are performing and will end with positive results.”