Oil India Limited has informed the Exchange about Formation of Joint Venture Company.
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Oil India Limited (OIL) has incorporated a new joint venture company called 'Assam Valley Fertilizer and Chemical Company Limited' (AVFCCL) on 25 July 2025. The JV is between Government of Assam, Oil India, National Fertilizers Limited, Hindustan Urvarak & Rasayan Limited, and Brahmaputra Valley Fertilizer Corporation Limited. The purpose is to set up a new Ammonia-Urea Complex (Namrup IV Fertilizer Plant) in Namrup, Assam. OIL has subscribed to 18,000 equity shares at Rs. 10 each, totaling Rs. 1,80,000, giving it an 18% stake in the JV. The total subscribed capital of AVFCCL is Rs. 10 lakh (1,00,000 shares of Rs. 10 each), with regulatory approval from the Department of Fertilizers, Ministry of Chemicals and Fertilizers.
This is a relatively small financial commitment for OIL (Rs. 1.8 lakh) but strategically positions the company in India's fertilizer sector, aligning with government push for domestic urea production. Shareholders should note this as a diversification step into fertilizers beyond OIL's core hydrocarbon business, with potential long-term benefits from the Namrup IV plant.