In Budget 2025-2026, Finance Minister Nirmala Sitharaman announced the setting up of a new urea plant with an annual production capacity of 12.7 lakh tonnes in which of the following states?

The correct answer is Assam . Key Points During the presentation of the Union Budget 2025-2026 on February 1, 2025 , Finance Minister Nirmala Sitharaman announced a major boost for the fertilizer sector by proposing a new urea plant in Assam . The new plant will be established at the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) complex in Namrup , located in the Dibrugarh district of Assam . This facility is designed to have a significant annual production capacity of 12.7 lakh tonnes of urea, which will help in meeting the growing demand for fertilizers in North-East India and beyond. The primary objective of this announcement is to achieve self-sufficiency in urea production and reduce the heavy fiscal burden caused by urea imports , aligning with the Atmanirbhar Bharat initiative. The project is expected to utilize natural gas as a feedstock, leveraging the local resources available in the state of Assam to ensure cost-effective production. Additional Information Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): It is a Public Sector Undertaking (PSU) under the Ministry of Chemicals and Fertilizers . The Namrup unit is historic as it was the first plant in India to use natural gas as a basic raw material for producing nitrogenous fertilizers. Urea Consumption in India: India is one of the largest consumers of urea in the world. As of 2024-2025 , the annual consumption is approximately 350 lakh tonnes , a portion of which is still met through imports from countries like Oman, Qatar, and China . Revival of Fertilizer Units: The government has been working on reviving five closed fertilizer units located at Gorakhpur (Uttar Pradesh) , Sindri (Jharkhand) , Barauni (Bihar) , Talcher (Odisha) , and Ramagundam (Telangana) to reach a production target of 284 lakh tonnes per year. Subsidy Mechanism: The Government of India provides a massive fertilizer subsidy to ensure that farmers receive urea at a statutory notified price , which is much lower than the market or import cost. In Budget 2025-26 , significant funds were allocated to maintain this subsidy net. Nano Urea Technology: Along with traditional urea plants, the government is promoting Nano Urea (Liquid) , developed by IFFCO . It is more nutrient-efficient , reduces logistics costs, and is an environment-friendly alternative to conventional granular urea. Important Points Economic Impact: The setting up of the 12.7 lakh tonnes plant in Assam will generate direct and indirect employment for thousands of people in the North-Eastern region, contributing to the Act East Policy of the government. Production Goals: The Union Ministry of Chemicals and Fertilizers has set a target to end urea imports by the end of 2025 or early 2026 . The Namrup expansion is a critical component of this national goal . Technical Specifications: New-age plants like the one proposed in Assam are expected to be energy-efficient , adhering to the latest environmental standards to minimize the carbon footprint of industrial fertilizer production. Natural Gas Pipeline: The project will benefit from the Indradhanush Gas Grid Limited (IGGL) , which is developing a North-East Gas Grid to ensure a steady supply of natural gas to industrial units in the region.