1
PRE FEASIBILITY REPORT
FOR OBTAINING
PRIOR ENVIRONMENT CLEARANCE
FOR
NPK COMPLEX FERTILIZER PLANT
OF
M/s. KRISHAK BHARTI COOPERATIVE LIMITED
PROPOSED AT
Bit-II
Survepalli village
Venkatachalam Mandal
SPSR Nellore
Andhra Pradesh
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INDEX
Chapter No.
TITLE
PAGE NO.
1 Executive Summary 3
2 Introduction of Project / Background
Information 5
3 Project Description 10
4 Site Analysis 25
5 Planning Brief 37
6 Proposed Infrastructure 32
7 Rehabilitation and Resettlement (R & R)
Plan 35
8 Project Schedule & Cost Estimates 36
9 Analysis of Proposal 37
Annexure 1: Location map of plant site on toposheet
Annexure 2: Detailed Plant Layout Map
3
EXECUTIVE SUMMARY
Krishak Bharati Cooperative Limited (KRIBHCO), a leading cooperative organization in fertilizer, proposes to set up a Green field NPK Complex Fertilizer Manufacturing Plant near to Krishnapatnam port in Nellore District of Andhra Pradesh. The proposed project falls under Category ―A‖ of project listed in schedule 5 (a) as per EIA notification, 2006 of MOEF.
The main components of the proposed project comprises of (1) Establishment of complex fertilizer plant (2) Storage facilities at Krishnapatnam port with unloading & handling of raw material , and (3) Laying of pipeline for the transportation of liquid raw material from the port to proposed plant site. KRIBHCO has acquired land for the proposed plant in Industrial Park-Nellore, allotted by Andhra Pradesh Industrial Infrastructure Corporation (APIIC), Government of Andhra Pradesh. The plant site is alongside Krishnapatnam port road & rail corridor adjacent to M/s UPI polymer India Private Limited and is situated at a distance of about 15 kilometers from Krishnapatnam port gate.
By entering into the business of Phosphatic fertilizers, Kribhco shall become one of the largest fertilizer organizations in India to have both Nitrogenous and Phosphatic fertilizers under single entity. Also by installing this NPK complex fertilizer plant, Kribhco intends to become complete plant nutrition provider to farmers in India and to meet India’s ever-growing need of NPK fertilizers to some extent, which is mostly import dependent.
Project at a Glance
S.No. Parameters Description
1 Project Location Survepalli village, Venkatachalam Mandal, Nellore District, Andhra Pradesh State
2 Total Area Proposed Plant: 286 acres
Krishnapatnam Port: 10.6 acres 3 Product Mix Following NPK grades:
a. 10:26:26 b. 12:32:16 c. 20:20:0:13 d. 15:15:15
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Project at a Glance
S.No. Parameters Description
4 Plant Capacity Daily Capacity (DAP equivalent) : 2 x 1650 MT
Annual Capacity ( total product mix) : 12.0 Lakh MT 5 Raw Material
requirement
Phosphoric acid (100%): 400,000 MT/year
Ammonia liquid: 220,000 MT/year
MOP: 480,000 MT/year 6 Raw Material
Storage
Storage at Plant Site
Ammonia storage tank (1 x 10000 MT).
Sulphuric acid storage tank (1 x 10000 MT).
Phosphoric storage tank (1 x 10000 MT).
MOP storage area of total capacity 36000 MT
Storage at Krishnapatnam (KPCL) Port
Ammonia : 2x15000 MT
Phosphoric acid : 4x10000 MT 7 Product Storage NPK (Bulk) : 16000 MT
NPK (Bagged) : 10000 MT 8 Utilities Storage Fuel oil : 500 m3
Raw water tank : 5000 m3
Treated water tank : 5000 m3
DM water : 300 m3
Raw water reservoir: 30000 m3
9 Power
Requirement
9.5 MW
10 Water
Requirement
Process water requirement : 1180KLD
Drinking water: 20 KLD 11 Man Power
Requirement
Total: 274
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2. INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION
2.1 Identification of Project and Project Proponent
Krishak Bharati Cooperative Limited (KRIBHCO) proposes to set up a Green field NPK Fertilizer Manufacturing Plant along with necessary offsite facilities, bagging plant, bulk silo, raw material storages & utilities etc. in Industrial park Nellore, near to Krishnapatnam port at Nellore District, of Andhra Pradesh. Two main liquid raw material ammonia & phosphoric acid shall be imported & stored at main storage tanks at Krishnapattanam port and will be transported to plant site through dedicated pipelines.
2.1.1 Identification of Project
KRIBHCO proposes to set up the NPK Fertilizer plant to produce different grades of NPK complex fertilizers to meet the farmer’s demand. Two manufacturing streams of NPK plant each having capacity of 1650 TPD (DAP equivalent - based on 22 hours operation per day) have been selected. KRIBHCO has acquired land of 286 acres in IP-Nellore at Survepalli village, in IP-Nellore District near Krishnapattanam port, Andhra Pradesh allocated by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The land survey has been carried out by KRIBHCO and Geo- Technical study is under progress.
NPK complex fertilizers are very important fertilizer segment. India is the third largest producer and second largest user of these fertilizers and has one of the largest areas under Irrigation. Complex fertilizers include DAP (Di Ammonium Phosphate) and NPK Fertilizers, comprising of all three major plant nutrients namely nitrogen, phosphorus and potash along with other product specific minor nutrients.
India is almost fully depending on imports for Phosphatic/potash fertilizers or the intermediataries required for production of NPK products like Phosphoric acid, Rock Phosphate, Murate of Potash etc. In order to fulfill the demand of NPK fertilizers, presently KRIBHCO has entered into long-term agreement for supply of DAP with Ma’aden, a leading quality DAP Producer in Saudi Arabia.
KRIBHCO as a business development strategy has been exploring opportunities for development of fertilizer projects to enhance its production capacity and to contribute in agricultural growth of India. There has been special focus on NPK fertilizer to complete product basket of KRIBHCO. In this regard, NPK complex Plant at Sarvopalli, Nellore has been identified as the prospective fertilizer project to fulfill the long term goals of KRIBHCO. By entering into NPK complex manufacturing business, KRIBHCO shall become one of the leading fertilizer organizations to have both Nitrogenous and
6 Phosphatic fertilizers under single entity and also complete plant nutrition provider in India.
2.2.1 PROJECT PROPONENT
Krishak Bharati Cooperative Ltd. (KRIBHCO) is a Multi-state Cooperative Society deemed to be registered under the Multi-State Cooperative Societies (MSCS) Act, 2002 and is a leading fertilizer player in the Cooperative Sector. KRIBHCO is recognized as one of the most successful integrated agricultural input brands in India. Along with owning & operating one of the largest urea-ammonia manufacturing complex since last 30 years at Hazira (Surat) Gujarat, KRIBHCO also have urea manufacturing base in JV format with Oman India Fertilizer Complex (OMIFCO) in Sultanate of Oman and KSFL, Shahjahnpur in Uttar Pradesh. KRIBHCO is the largest urea marketer in India.
KRIBHCO is also manufacturing & marketing Bio-fertiliser, seeds, imported DAP and other allied farm inputs. The extensive farm extension services by KRIBHCO have resulted in tremendous trust and goodwill with a very strong brand image among farmers. It also has diversified stake in Power Sector and has entered into Logistics Business through its subsidiary KRIL. Gramin Vikas Trust, run by KRIBHCO, has been implementing various Rural Development Projects in India.
2.2 Brief Description of Nature of the Project
The proposed NPK Complex fertilizer Plant can produce various grades of NPK complex fertilizers. Presently following NPK grades are proposed to be manufactured from the plant, with 22 hours per day operation and 320 of on-stream days/year.
Products Design hourly Capacity 10:26:26 95 TPH
12:32:16 95 TPH 20:20:0:13 65 TPH 15:15:15 80 TPH
The above complex fertilizer plant is located at about 15 km from the Krishnapatnam Port. The land for the complex fertilizer plant is allotted by APIIC, Government of Andhra Pradesh. The project is based on imported raw materials to be received at KPCL port. KRIBHCO also proposes to set up raw material unloading and storage facilities at Krishnapatnam Port and also installation of raw material transfer pipe line from berthing to storage within port area (approx: 3.5 km) and from port storage to plant site ( approx. 15 km). The port is equipped with all facilities to support the KRIBHCO proposed project.
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2.3 Need for The Project and Its Importance to the Country and/ or Region
Chemical fertilizer has a crucial role in India’s green revolution and consequent self reliance in food grain production. The Indian Fertilizer companies produced around 32.4 million tonnes of fertilizer in the year 2012-13. However, the total availability was short of demand and was met through imports. Of total fertilizer production, urea output increased to 22.6 million tonnes in FY12-13 from 22.0 million tonnes in FY11-12 due to better capacity utilization. While production of di-ammonium phosphate (DAP) output has gone down to 3.6 million tonne in FY12-13 from 4.0 million tons last year, output of NPK (nitrogen, phosphate and potassium) decreased to 6.2 million tonnes in FY12-13 from 7.8 million tonnes in FY11-12.
The demand forecast of fertilizer products in India from 2013-14 to 2017-18 are shown in below table:
Year Urea DAP Complex Fertilizer In Lakh MT 2013-14 311.92 117.84 196.02 2014-15 320.29 120.02 204.44 2015-16 328.58 122.12 212.98 2016-17 336.77 124.13 221.61 2017-18 337.54 127.64 232.51
Source: Indian Fertiliser Scenario 2013, Department of Fertiliser, Government of India
Production of the urea, DAP and complex fertilizers for the last five years shown in the below table: In Lakh MT Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Urea 199.2 211.12 218.81 219.84 225.75 227.15 DAP 29.93 42.46 35.37 39.63 36.47 36.11 Complex Fertilizers 68.48 80.38 87.27 77.70 61.80 69.13
Source: Indian Fertiliser Scenario 2013, Department of Fertiliser, Government of India.
As shown above, India is having a very huge demand supply gap of the different grades of fertilizer. To overcome this gap many industries have come up with the proposal of revamping or increase in the capacity by introducing the new unit. In vision to the above
8 KRIBHCO had already revamped its existing unit at Hazira for Urea production from 18 LMTPA to 22 LMTPA. To bridging the demand gap and opportunity of diversifying its product portfolio, KRIBHCO as a business development strategy is proposing to setup a NPK complex fertilizer plant in A.P. to cater the fertilizer demand.
The proposed project will contribute to partially meet the demand-supply gap of NPK fertilizers with proposed annual production capacity of 12 LMTPA in the major consumption region. The project will directly enhance the availability of these fertilizer grades at the door step of the farmers. Being a mega project, it will also enhance the industrial development of the region and provide direct or indirect employment opportunities to skilled/unskilled manpower. Thus the proposed project of KRIBHCO will certainly contribute towards the economical development of the country.
2.4 Demand-Supply Gap
As has been described above, there is huge demand-supply gap projected in fertilizer in general and NPK complex fertilizers in particular. The rate of consumption of NPK fertilizers have been increasing at CAGR of 10.7%. This huge gap may be fulfilled through a combination of new capacity additions and imports.
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2.5 Employment Generation (Direct and Indirect) due to the project
The project is likely to generate huge direct & indirect employment potential. Being a mega project it is certain to boost the industrial growth all along the region. The proposed plant will also give rise to the many supporting & ancillary units e.g. packing bag industry, transportation industries, hospitality, trading etc.
The proposed project will expectedly benefit the local/regional area through direct and indirect employment generation to more than 1000 people including the fixed and temporary manpower.
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3. PROJECT DESCRIPTION
3.1 Type of the Project
The proposed project is green field project. As per EIA notification, 2006, proposed project is Category ―A‖ project of Chemical Fertilizer, which is listed as schedule 5 (a). The Project includes following different facilities:
Chemical Fertilizer Plant at Nellore (16-18 Km from port storage).
Port Storage for Ammonia & Phosphoric acid at Krishanpatanm Port of KPCL.
Pipe lines for these raw materials from unloading Jetty to Port Storage (03-05 km) and from Port storage to site (16 km).
KRIBHCO has also considered options of transporting liquid raw material from port to site by road as alternate/additional mode of transportation, along with MOP which will be transported through road from port to Plant site.
3.2 Location with Co-ordinates
The coordinates of the proposed plant is given below:
Latitude : 14 16 52.616 N
Longitude: 79 58 51.813 E
The location map of the plant site is shown in Figure 1. The layout map of the proposed infrastructure from port to plant marked on the google map shown in Figure 2. The plant location on toposheet is enclosed as Annexure 1.
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Figure 1: Location map of the proposed plant site
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3.3 Details of Alternative Sites Considered
NPK complex fertilizers are based on imported raw material & intermediaries as the same is not available indigenously. Accordingly such project needs to be located near ports. The selected site is near Krishnapatan port land has been allotted by APIIC in Industrial Park in Nellore district. The site has been selected based on various project requirements and vicinity to market.
The selected land is free from any issues of acquisition, forest land, heritage building etc. without any existing structure and is a completely barren land. The ownership of the complete land is transferred to the KRIBHCO accordingly, no alternative site for the project has been considered.
3.4 Size Or Magnitude Of Operation
The annual production capacity of the plant will be about 12.0 lakh MT, based on the two plant stream of NPK fertilizers of design capacity of 75 TPH (1650 MTPD of DAP as basis) to produce the following proposed grades with their production capacity with On-Stream time of 22 hours/day and 320 days of operation in a year.
Products** Design hourly Capacity Annual Capacity (25 % production of each (MT) 10:26:26 95 TPH 334400 12:32:16 95 TPH 334400 20:20:0:13 65 TPH 228800 15:15:15 80 TPH 281600 Total 117200 3.5 Process/Project Description 3.5.1 Process Technology:
The NPK complex manufacturing plant uses ammonia, MOP, phosphoric acid, and sulphuric acid as main raw materials along with urea & some other additives as filler material. There are many Process technology having proven track records. Following major Process technologies are available worldwide:
I. Pre neutralizer (PN) Process:
This was the conventional process employed in 70’s. It produces a more spherical product, but a very high recycle ration 6.8:1 for DAP and 3.5-5:1 for NPKs.
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II. Pipe Reactor (PR) Process:
A single PR is installed inside the granular. Its main advantage is the low recycle ratio (3.6-4:1 for DAP and 2.3:1 for NPKs, the low product moisture, the high product hardness and the system simplicity. For NPKs and small DAP plants (up to 50 TPH) is the preferred process, whereas for large DAP plants mixed process is preferred due to heat balance imitation.
III. Dual Pipe Reactor System:
In this system one PR is installed in granulator and another one is dryer, to split part of the heat. It operates at low recycle 3.5 – 4:1, but main problem is dryer poor performance, dust production, final product contamination and excessive duty for cyclones and scrubbing system.
IV. Mixed Process PR+PN:
This technology from INCRO is one of the best process for large DAP/NPK plants, since it splits the heat between PN and PR, operates at low recycle 4:1 and produces a more spherical product than any PR only process. It also provides flexibility to produce any NPK grade, with PR or PR+PN.
Out the technologies mentioned above, KRIBHCO is considering Mixed Process
PR+PN technology in view of its advantages over the other technologies for
intended level of production. This technology can provide flexibility of producing various grades of NPK from the proposed plant as per the marketing scenario.
3.5.2 Project description
There are following major sections of the production process: a) Raw Material Feeds
b) Slurry Preparation and Granulation c) Pre-neutralizer
d) Pipe Reactor e) Granulation f) Drying
g) Screening & Drying
h) Final Product Conditioning i) Dust and Fumes Collection j) Scrubbing
The simplified layout map is shown in Figure 3. Detailed Layout is enclosed as
14
Figure 3: Simplified Plant Layout Map
a) Raw Material Feeds
Phosphoric acid at 50-54% p2o5 strength is pumped from its storage day tank to the various destinations in the plant, namely the pipe reactor tank, the granulator pre-scrubber tank, the pre-scrubber tank and occasionally to the preneutralizer reactor.
Liquid ammonia is pumped from storage to the liquid ammonia heater and from here to the pipe reactors, to the granulator ammonization system and to the ammonia separator vessel. Eventually liquid ammonia can also be sent to the preneutralizer. These systems are described in detail at a later stage.
Sulphuric acid is used for ph and n/p control and it can be fed to preneutralizer, to granulator, to granulator pre-scrubber tank, to the scrubber tank and to the tail gas scrubber.
MOP, urea, filler and spillages (or off-spec product) is fed from their storage building to the plant building by common conveyors. Once in the plant there is a common raw material rotary diverter, to feed the different solid raw material to their correspondent bin. The quantity of raw materials added to the granulation loop is controlled by the variable speed electronic feeders for urea, potash, filler and off-spec product respectively.
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b) Slurry Preparation and Granulation
NPK without urea are produced by pipe reactor(s), where 100% of the total ammonium phosphate / sulphate slurries will be generated. For NPK production one or two PRS will be used depending on the grade.
A molar ratio n/p = 1.4-1.5 is reached at 135-145°c in pipe reactor for dap production, as results of neutralizing a phosphoric acid of about 42-44% P2O5 (including some sulphuric acid) with liquid ammonia.
A molar ratio n/p = 1.4-1.5 is reached at 130-140°c in pipe reactor for NPK production, as results of neutralizing a phosphoric acid of about 40-42% P2O5 (including some sulphuric acid) and liquid ammonia.
NPK with high content in urea is produced using pre-neutralizer reactor, where 100% of the total ammonium phosphate / sulphate slurries will be prepared. in case of using mixed process, the slurry will be produced by pre-neutralizer and pipe reactors.
A molar ratio of n/p = 1.4-1.5 is reached at 115-125°c in pre-neutralizer, as results of neutralizing a phosphoric acid of about 33-40% p2o5 plus small quantities of sulphuric acid and vapor ammonia (some exceptional occasions liquid ammonia).
c) Pre-neutralizer
The reaction between gas ammonia and phosphoric acid begins in the pre-neutralizer. The pre-neutralizer is equipped with an agitator to improve ammonia absorption, to provide temperature and reaction uniformity, to reduce foaming and to maintain solids in suspension during short shutdowns.
The pre-neutralizer is specially designed to provide high freeboard, good reactants mixing, low ammonia losses and low retention time, by making the lower section of a smaller diameter. This ensures maximum P2O5 solubility in the product.
Two pumps with independent piping systems are provided to constantly deliver the required quantity of ammonium phosphate slurry from the pre-neutralizer to the granulator. This arrangement permits washing or maintenance of one complete line while the other is in service, an important feature assuring a high on-stream operating factor. The slurry pumps are variable speed pumps controlled by variable frequency drives, thus eliminating the need for control valves in this difficult application.
Acid fed to pre-neutralizer is essentially constituted by the phosphoric and sulphuric acids used in the scrubbing system.
Gases generated into the pre-neutralizer are sucked up towards the Fumes Pre-Scrubber, to recover most of the evolved ammonia losses.
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d) Pipe Reactor
The reaction between liquid ammonia and phosphoric acid takes place in the pipe reactors, which are composed of a mixing head and a distribution pipe, last one directly installed inside the granulator drum.
For NPK grades production, both installed PRS will work simultaneously. In some NPK grades only one pr will be enough to produce the necessary slurry. Acid fed to pipe reactor is constituted by the mixture of the fresh phosphoric acid fed to P.R. tank plus the mixture of phosphoric and sulphuric acids used in the scrubbing system. Pipe reactor is equipped with acid and ammonia flow controllers, acid being fed by the variable speed pipe reactor pumps. The use of liquid ammonia in the pipe reactor improves the control of temperature in the granulator, which is very important especially in dap production.
Pipe reactor residence time is only of few seconds, thus avoiding creation of insoluble P2O5, or formation or reaction compounds with a lot of bonded water in their composition.
An automatic and interlocked cleaning system has been also provided to flush the pipe reactor with medium pressure steam in case of unexpected shutdown or scheduled flushing. In last case flushing will take less than one minute and will be performed without stopping the rest of the plant.
e) Granulation
The function of the granulation system is to transform the slurry and solid raw materials into a granular fertilizer product with the required composition and size. Granulation occurs in the drum granulator, where phosphate slurries are sprayed onto a bed of dry material, composed by the added solid raw materials (urea, potash, and filler) plus the fines, crushed oversize and part of the commercial product returned to granulator. Slurries are directly sprayed from the pipe reactor distribution pipe, or by pumping from pre-neutralizer pumps, in this last case sprayed using a distribution pipe with spray nozzles.
The rolling action within the granulator distributes the slurry evenly on the surface of the granules, and produces a very uniform, hard, well-rounded, layered granule. The resultant thin film of slurry is easily dried after rolling and reaction with liquid ammonia. The granulator is inclined towards the discharge end to facilitate transfer of the large recycle load. There are several emptying doors (4), at the granulator's exit ring, to adjust bed depth to the optimum value, as well as to allow emptying granulator for maintenance / cleaning purposes.
17 To complete the acid neutralization of the slurries to the required NPK/NP grades, an ammonia system is installed, to inject liquid ammonia deep into the solids bed, promoting granules water evaporation.
The ammonization system consists on rubber hoses supported from the granulator's main beam. This system avoids the formation of lumps, provides a homogeneous distribution of ammonia and reduces granulator power consumption, thanks to the almost absence of frictions caused by product solid bed while turning. Two independent distribution pipes with sprays are provided for eventually feeding sulphuric acid and water inside granulator (over solids bed).
The granulator is a carbon steel drum lined with rubber panels and equipped with an apex scrapper, to minimize product build-up on the supporting beam and the rubber panels. It will be also equipped with a lumps kicker to prevent any lump from remaining inside the drum, disturbing the flow of solids and promoting other lumps formation. Lumps kicker will make the lumps to jump to an attached grizzly, which will disintegrate them by the rotating action.
Rest of product will leave the granulator by passing through the grizzly bar. Solids leaving granulator, normally with moisture content around 2-3% will be gravity fed to dryer, in order to achieve the final requested moisture of 1.0-1.5%. Gases developed into the granulator are sucked up towards the fumes pre-scrubber 3, to recover most of the evolved dust and ammonia losses.
f) Drying
In the rotary drum type dryer, the solids are lifted and cascaded through a co-current flow of hot air from the combustion chamber. The dryer is designed for maximum efficiency and minimization of material build-up. The combustion chamber is FO fired. Air for combustion is supplied by the combustion air fan. The quench air propelled by fan is used to reduce the temperature of the combustion gases up to a temperature adequate for the combustion chamber. The temperature of the hot gases after dilution entering dryer is about 120-180 °C (for NPKS with urea) and 130 -250°C (for NPKS without urea). Control of the firing rate can be done based on the dryer outlet gas temperature which is controlled at about 90-105°C, depending on the grade, product moisture content and the granulation temperature. In some cases firing rate on the dryer inlet gas temperature (specially recommended in NP products with high urea contents) is controlled with dryer inlet gas temperature.
The product at dryer discharge flows through the grizzly, consisting on a bar grizzly equipped with lumps lifter located on it. Broken lumps and small product will flow through the grizzly bar, whereas harder lumps will be elevated and eventually fed by the elevator to the lump crusher, feeding chute. Oversize crushed lumps will then join the
18 rest of product in dryer exit belt conveyor, which feeds screen feed elevator. Dryer exit gas contains some dust that is removed in the dryer cyclones, collected in the cyclones hoppers and returned to the recycle. Dryer exit conveyor is equipped with a throughput weigher and a magnetic separator, installed to remove any metallic part that may damage oversize mills. From that belt conveyor, solids fall by gravity to the exit dryer elevator.
g) Screening and Crushing
The plant utilizes vibrating oversize Process Screens. The dryer elevator feeds the screens. Directly installed at the outlet branches of the screens splitter there are two screen diverters, also with electrical motor actuator, that will be used for by-passing the correspondent screen and process crusher for maintenance and cleaning or when a partial (or total) emptying of the unit is required in a relatively short period of time.
To improve screen efficiency each screen has a dedicated vibrating feeder to evenly distribute the feed across its entire width.
The oversize screens will separate from the on-size and fine product, the oversize fraction above 4 mm, which is crushed in four oversize mills. Feeding is accomplished by independent chutes from each screen. The suggested mill type is a double rotor chain mill, which provides and efficient crushing with small size dispersion on ground product.
These mills directly discharge onto the recycle conveyor, through oversized chutes. The product less than 4 mm flows to the four single decks undersize process screens, which separate the fines below 1 mm, sending them back to recycle.
The on-size product from all four screens is collected in the recycle regulator conveyors. These belt conveyors will adjust the required amount of product desired for production. The extraction rate, controlled by the recycle regulator belt weightier, will be fixed from DCS in control room and it will regulate belts speed and the amount of on size product going to final product treatment section. The operator should fix a rate on the weightier to extract from the granulation loop only the required quantity of product to match the production rate after passing through cooler and polishing screen. Any excess of on-size product will not be extracted at that belt speed and will automatically overflow from the recycle regulating hoppers the recycle conveyor.
The recycle conveyor will receive:
Dust from all cyclones
Fines from all undersize screens
Crushed oversize from mills
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Fines from polishing screen
Special care should be devoted to the design of the recycle conveyor. It should operate at rather low speed, to avoid mechanical problems, and its cover should be dust tighten, for avoiding dust emission. The recycle conveyor discharges onto the Recycle Elevator that feeds all the recycle and solid raw materials to the granulator drum.
h) Final Product Conditioning
Product on size material from the Recycle Regulator Conveyors is fed by gravity to the Cooler Drum. Cooler is counter current rotary type and the cooling air comes from Air Cooler Impulsion Fan. This air is previously chilled in the following way:
If PN is not used, the air is slightly chilled in the E.G. Air Chiller using the cold 50 % Ethylene Glycol (EG) solution after heating the cold liquid ammonia.
If PN is used, the air is initially chilled in the same E.G. Air Chiller using the cold 50 % EG solution after heating the liquid ammonia and then is additionally chilled in the Cooler Ammonia Air Chiller which uses the cooling generated by ammonia vaporization (ammonia vapor to be used in the PN).
Rotary cooler fines screw conveyor is a small screw conveyor installed at the product feed end of rotary cooler for conveying towards the screen feed elevator the fines granules and gross particulates of dust entrained by the counter-current air leaving the cooler that are collected in the cooler feed end hopper. To prevent absorption of moisture by final product during the cooling process air have to be conditioned (chilled and dehumidified), mainly when ambient air is too wet, thus down-stream cooler air chiller is installed the air heater for reducing the air relative humidity above the product CRH. This is especially important when producing NPK/NP with high urea content since they are very hygroscopic compounds. DAP has a critical relative humidity CRH of about 75-85% at 30°c (lower at higher temperature) but urea based NPK/NP has lower CRH, of around 45-50% , and they could retain moisture if the air feed to cooler has higher relative moisture. The cooler air chiller (and also the quench air chiller) reduces the ambient air temperature by vaporizing the incoming liquid ammonia that is then fed pre-neutralizer from ammonia separator. The chillers are followed by a demisters to prevent any condensed water may reach the cooler (or combustion chamber in case of quench air chiller).
Dust coming out with the air leaving the cooler is recovered in a battery of cyclones and collected in their respective hoppers, from where it is fed back to the recycle conveyor. About 55-65 % of the air leaving cooler cyclones will be sent to the cooler & de-dusting scrubber for its washing, through the cooler & de-dusting exhaust fan, whereas the rest of this semi-clean warm air (35 - 45%) will be recycled to the dryer as dilution air,
20 through air cooler recirculation fan, improving energy efficiency and reducing at the same time the size of scrubbing equipment.
Rotary cooler discharges cooled product directly to final product elevator which lift it to the single desk polishing screen. Fines under 1 mm are separated and returned back to recycle, whereas commercial size product between 1-4 mm falls by gravity to the coater drum. Coating oil is added to the coater drum for caking control. Polishing screen is equipped with a vibrating feeder to improve the screening efficiency to evenly distribute the feed across its whole width. Coating is particularly necessary when bulk storage during long periods of time or ship exportation is envisaged, because the hygroscopic features of npk grades can promote caking, mostly when variations of air temperature and moisture occur. Coating agent is normally an amine containing high viscosity oil or wax (paraffin), normally solid at ambient temperature and with a pour point of around 50°c. The coating oil is kept at around 70-80 °c in the coating oil tank (using its steam coil heater) and is fed to the coater drum by using the coating oil dosing pumps, through lp steam traced pipes and spray nozzles. After coating, product falls by gravity to the final product belt conveyor, which will send product to the final storage, outside B.L, via several conveyors on series.
i) Dust and Fumes Collection
All process equipment in the plant operates under a small negative pressure in order to prevent the escape of unreacted ammonia, other gases and dust from the process. Air containing ammonia, water vapor and dust from the pre-neutralizer and pipe reactor / granulator is vented to the granulator fumes pre-scrubber, where ammonia and a major portion of the dust are removed by reacting with the phosphoric acid contained in the circulating scrubber solution. From the pre-scrubber the gas flows to the granulator scrubber, where most of the remaining ammonia and dust are removed. Air leaving this scrubber is sucked by the granulator exhaust fan and feeds the double step tail gas scrubber, to recover fluorine evolved during phosacid washing and to complete ammonia and dust recovery.
Gas containing ammonia and dust from the dryer, flows to the dryer cyclones, to remove major portion of the dust, which is returned to the recycle conveyor. Gases from the cyclones flow to the dryer scrubber, sucked by the dryer exhaust fan located downstream the scrubber, and from there to the final tail gas scrubber for further ammonia and dust removal and to recover fluorine evolved. Air containing dust from solids handling equipment (conveyors, elevators, screens, etc.) is vented into the dedusting cyclones, where most of the dust is removed, air from the cyclones flows to the cooler & dedusting scrubber, to be jointly washed with the gases coming from cooler cyclones. Air from rotary cooler, containing some lower quantity of dust, is cycloned to remove most of the dust. Approximately 35-45% of that gas stream is recycled to the
21 dryer, whereas the other 55-65 % is sent by the above mentioned cooler & dedusting scrubber to be jointly washed with the gases coming from dedusting cyclones.
j) Scrubbing
A powerful scrubbing system has been designed not only to remove effluents from gas streams, but also to recover the nutrients, thus increasing plant efficiency. The scrubbing system for this plant consists of three washing steps:
1st step: granulator pre-scrubber, a low pressure venturi with cyclonic tower scrubber that includes also a duct scrubber.
2nd step: granulator scrubber, dryer scrubber and cooler & dedusting scrubber, all of them venturi scrubber with cyclonic separator tower.
3rd step: tail gas scrubber — two step scrubber with a duct washing scrubber and a packed tower scrubber.
3.6 Raw Material required
This Fertilizer Complex requires the following annual raw material consumption which needs to be met by imports through placement of long term contracts with suppliers, as summarized in Table below. These requirements shall vary depending on the NPK grade to be selected for the production, quality of raw material from time to time and plant capacity utilization. Individual consumptions are considering maximum specific consumption of raw material for different NPK grades at 100% plant load case.
Raw materials Quantity (MT)
Phosphoric Acid (100%) 400000
Ammonia 220000
MOP 480000
Sulphuric Acid 250000
Other raw materials that will be sourced indigenously required in small quantities mainly comprises of FO Fuel, Filler / Urea, Defoamer, Coating Oil, Ethylene Glycol, Raw water / Fire water, Nitrogen etc.
3.7 Resource Optimization/ Recycling and Reuse Envisaged in The Project
There is no wastage of raw material from the NPK plants during normal operation. There is a sump tank in respective units where spillages can be collected and subsequently reused in respective process units. All wastage material in solid form also will be collected and will be re-introduced in the plant. The process technology has
in-22 built system to recover all nutrients from emission/wastages and recycled back in the production system.
Aligning KRIBHCO’s approach to public concern over environmental pollution with awareness of the health hazard, required measures to eliminate discharge of contaminants into the air and public waterways has been considered. Environmental monitoring plans will be prepared for the project to ensure all activities of the project are operated in an environmentally safe manner. A brief note on the various environment impacts of the project and the remedial measures are enumerated hereinafter:
During construction, the activities that might cause adverse effects to the area are - Site preparation
- Site filling, flattening and reinforcement of the foundation - Transportation of materials and equipment to the site - Construction of infrastructure
- Installation of equipment and support facilities for the plant
These activities will be controlled primarily by the construction contractor(s) under agreement(s) with LSTK contractor / KRIBHCO to follow the requirements to be satisfied at site.
During operations, the activities that have an adverse impact on the environment are : - Transport and storage of feedstock and product
- Operation of the production process - Gaseous waste and liquid waste.
Environmental impacts of these activities will be controlled to a very low level satisfying the requirements of Andhra Pradesh Pollution Control Board (APCB).
3.8 Availability of water & its source, Energy and Power requirement and source
a) Water Requirement and its Source:
Raw water requirement: 1200 KLD
The requirement of water as above is to be provided from Sarvepally reservoir which is about 2 kms from source & ground water. The feasibility of the same has been
confirmed by AP Govt.
b) Power Requirement and Source:
Maximum Power consumption: 9.5 MW
The power shall be provided at plant battery limit by APTRANSCO from grid at 132kV in outdoor switchyard. This will be stepped down to 11kV and same shall be used through distribution board in main substation to distribute power to various plant substations.
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3.9 Waste generated (liquid, solid & gaseous) and schemes for their management
Gaseous Emissions
The following maximum limits shall be used as a basis for ambient air quality standards, recorded at measuring points on stack. Following limits are stringent with respect to CPCB norms, however all measures shall be adopted to meet the local environmental norms.
NPK
Stack air outlet: 400000 m3/hr (expected) from each unit Particulates : ≤ 50 mg/Nm3
Fluorine : ≤ 10 mg/Am³ Ammonia : ≤ 50 mg/Nm3
For NPK stack gaseous monitoring following online Analysers for ammonia, particulate matters & fluorides shall be provided with connectivity to CPCB server.
Fugitive Air Emission
Fugitive emission is expected from the various sources of the Plant. e.g, In-line/open valves, Flanges, Pressure relief devices, Pump seals , Compressor seals, Sampling connections, Field instruments and Open vents of pits etc.
These fugitive emissions will be controlled by suitable application of low emission valves, pump seals & scrubbers etc. These Plants will be designed, constructed and operated satisfying the APCB standard regulations & guidelines.
Liquid Effluents:
There are no liquid effluents from the NPK plants during normal operation excluding leakages, cleaning. There is a sump tank in respective units where spillages can be collected and subsequently reused in respective process units.
Liquid effluents from other plants are neutralized in common neutralization pit & pumped up to plant Battery Limit. Online analyser for pH, BOD, COD, TOC & TSS shall be provided as per CPCB Norms.
Solid wastes
All solid waste and spillages will be collected and re-introduced in the plant.
Noise Emission
Noise emission is expected from the various sources like Compressors, Blowers / fans, Centrifugal pumps & Control valves, etc. Noise emission from these sources will be controlled as per best industry practice & norms.
24 Noise Level inside Premises and Noise level of working place will be controlled within the limit as specified in the standard of APCB, Andhra Pradesh. In the case that some areas might not satisfy the said standard, suitable counter measures, e.g. addition of noise insulation, etc., shall be applied in order to satisfy the said standard.
Noise level at Boundary Fence will be controlled to satisfy noise criteria in APCB, Andhra Pradesh, which is less than 75 dBA. In the case that the noise level might exceed the said noise criteria, suitable counter measures as stated above, shall be applied in order to satisfy the said noise criteria.
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4. SITE ANALYSIS
4.1 Connectivity
The proposed project site is well connected with road, railways, airway & waterway. The project site is adjacent to the well developed four lane port road which is connected to NH 5 at distance of 12 km from the project site. The nearest railway station is Venkatachalam railway station which is approx. 8.6 kms from project site. The nearest local airport is Tirupati which is approx.120 km from project site. The nearest port to project site is Krishnapattnam port which is approx.15 km from the project site.
4.2 Land Form, Land use and Land ownership
The proposed project site is barren land with having scattered vegetation. The land for the proposed project comes under approved industrial estate which is allotted to KRIBHCO by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The land ownership is transferred to KRIBHCO and KRIBHCO has already taken the possession and initiated preliminary activities like land survey, geotechnical survey etc.
4.3 Topography
The proposed project site is barren land with having scattered vegetation. Max level of this site is 13.0 m and min level is 5.0 m. District headquarters town Nellore is located at a distance of nearly 21 Km from the project site. The area does not have any ecologically, religious, historical sensitive area or places.
4.4 Existing Land use pattern
The existing land is within the notified industrial allotted by government of Andhra through APIIC. A copy of the notification is attached with the report.
4.5 Existing Infrastructure
The proposed land allotted to KRIBHCO is a barren land with scattered vegetation. There is no existing structure on the allotted land. The site is well connected and being in the declared industrial estate, various industrial infrastructures is being upgraded/created by AP Govt. industrial development authorities in regard to water, power, roads etc.
4.6 Soil Classification
The predominant soils in the project region are red loam, black cotton, lateritic sandy and alluvial soils.
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4.7 Climatic conditions
The climate of the region is generally dry and salubrious. May and June are the hottest months with the highest maximum Temperatures recorded. November, December and January months record low Temperatures.
The annual normal rainfall of the district is 1084 mm. The peculiarity of this district is that contribution of SW monsoon is far less than the contribution of NE monsoon rainfall. About 70% of the annual rainfall is contributed by the NE monsoon.
4.8 Social Infrastructure
The selected site is very near to well inhabited area with good deal of existing social infrastructure. The sarvepalli village, the birth place of one of the greatest presidents of India is a well developed village, migrating towards a town. The Nellore city, the district headquarter is just 15 km from site and is a well developed city. All amenities of any urban state is available including recreational centers, hospitals, education institutes and others.
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5.1 Planning concept (type of industries, facilities, transportation etc.) Town and Country Planning/ Development Authority Classification
5.1.1 CONSTRUCTION PLAN / SITE MANAGEMENT
All site activities connected with the project will be handled by the Construction Group of LSTK contractor. LSTK contractor construction team of engineers will be headed by a Resident Construction Manager (RCM).
Temporary works
Upon receipt of confirmed order from KRIBHCO and after the kick-off meeting the RCM or his authorized representative shall be mobilized at site to attend to the following:
Detailed site survey.
Power utilities and temporary facilities requirement / location survey.
KRIBHCO, in the names of various sub-contractors is to be engaged for the job, to facilitate obtaining labor licenses in their respective names from concerned statutory authorities, this being a pre-requisite for deployment of labor at site as per Indian Labor Laws.
Construct temporary fencing and road as per KRIBHCO guidelines around the area allotted for including the area for temporary facilities after obtaining approval from KRIBHCO with provision for manned / unmanned gates for entry into the PLANT area.
Grading the whole plant as well as lay down area.
Mark out locations of proposed site office, stores and fenced open storage yard on the plot plan and construct the same after obtaining approval from KRIBHCO on the plot plan thus marked.
Apply to the local Electrical Inspectorate, if applicable, through KRIBHCO for necessary approval of proposed electrical net work for construction power distribution at site.
Assess the construction power / water requirement and develop the distribution network and get the same executed by an agency engaged by KRIBHCO. Identify and mark up on plot plan the area required by respective contractors for putting up their temporary site office, stores, batching plant, painting shed, radiography source pit as per BARC's regulations, open space for storage and
28 prefabrication/assembly etc. / obtain approval from KRIBHCO on the plot plan thus marked and organize for construction of these temporary facilities by such contractors at site.
Generally the following activities will be performed at site during the
construction phase
- Arranging various temporary facilities including area grading - Piling
- Civil and Structural Work - Equipment erection and piping - Refractory work
- Electrical
- Instrumentation - Painting
- Insulation
Following activities shall be carried out from the home office:
The RCM initially takes-up position at the home office to attend to the following activities: Short listing of contractors in consultation with KRIBHCO Pre-construction planning.
Identification of contracts for different categories of jobs to be executed at site. Preparation of tender documents for various construction contracts Finalize field Organization structure inclusive of supervisory personnel
Review of erection schemes including heavy lifts. All single lifts of over 50 tons and over 12 meter of installation elevation are classified as heavy lifts. Identify/schedule requirements of heavy duty crane and establish availability as per schedule.
Finalize various Welding Procedure Specifications including welding procedures for all kinds of Non-IBR welding requirements at site, whereby only welder performance qualification tests need be carried out at site.
Expedite approval of welding procedure specifications, welding procedures and welders of contractors by IBR for carrying out various IBR welding works at site.
Development of construction coordination procedures.
Review of the preliminary design package for constructability based on plot plans, assembly drawings, delivery dates of critical equipment etc and specifications encompassing piping, steel work and critical equipment erection works which is to be continued during the detailed design phase as well.
Pre-29 construction planning shall be a parallel activity with that of constructability review.
Participate in the Logistics survey to establish methodology/agencies for movement of heavy / oversized consignment to site in conjunction with local Traffic Rules.
Establish required working arrangement with local weather broad casting / cyclone warning centers to obtain advance warning of at least seven days of impending cyclone, likelihood of wind velocities exceeding safe limits during erection works etc. involving the KRIBHCO in such exercises.
Participate in the preparation of an overall project schedule highlighting every phase of the project execution commencing from design, procurement, shop fabrication, site delivery, installation, testing and commissioning, clearly identifying the cutoff dates for each activity including site delivery of critical equipment etc. defining in detail the timing for construction work. Based on this detailed schedule, a Master Construction Schedule (MCS) shall be drawn-up encompassing all discipline works at site. The above MCS shall identify mobilization requirements for critical construction equipment like heavy duty cranes for handling heavy lifts etc.
The following activities are performed under 'site activities': Preparation of site for construction Site mobilization
Material control and planning Contract management
Construction supervision and field engineering
Quality control Safety management Site administration Construction Methodology Pre-commissioning
Preparation of site for construction:
The following activities are performed under this head:
Construction of fencing/ Gates Relocation of existing facilities Required leveling
Construction of temporary / permanent roads (except final carpeting)
Storm water drains (initially temporary followed by permanent ones) Setting up of proper stores
30 Initial mobilization is expected 5 month after the effective date of contract as per agreed construction schedule drawn up for the project.
Work Permit Procedure:
Based on the specific hazards involved for various activities, necessary work permit system in line with KRIBHCO's requirements shall be followed to ensure safe working at site. This is particularly relevant during pre-commissioning operations when it will be preferable to obtain a work permit for each shift for any work to be carried out.
Materials Management:
A proper materials management system shall be implemented at the project site encompassing all aspects of stores management like preparation of material receiving / issuing reports for accounting and verification purposes, processing of claims and / or back-charges for shortages / damages during transport etc. in coordination with quality control personnel, wherever required etc. Proper receipt, storage and preservation of materials that are required at a later phase of the project execution shall also be the responsibility of the stores team. All stores materials shall be stored as per applicable safe and good housekeeping practices to facilitate easy identification / handling of any material / component. Weather sensitive materials/equipment and supplies shall be stored under covered storage.
Care should be exercised to ensure that materials stored are not affected by possible flooding of the project area during rainy season. Materials / equipment / supplies arriving at site shall be unloaded / stacked using appropriate handling equipment. Proper inspection and quantity check of various materials received at site shall be carried out immediately and entries made in the respective stores records. Excesses, shortages and damages etc. shall be recorded and concerned parties informed for corrective action. Local purchases to take care of changes, rework, shortages etc. shall be carried out in coordination with material controller and quality control personnel at site and shall be in line with the project procurement procedure envisaged for the project.
The following inventory control reports will be maintained at site: • Daily Receiving Report (DRR)
• Material Receiving Report (MRR) • Item wise Summary of MRR
• Statement of Pending Consignments • Excess-Shortage-Damage Report (ESDR)
31 • Material Issue Voucher (MIV)
• Serial-Wise/Contractor-Wise Listing • Contractor-Wise Issue Summary • Item-Wise Issue Summary • Material Return Voucher (MRV) • Material-Wise Listing
• MRV Item-Wise Summary • Contractor-Wise MRV Summary • Contractor-Wise Reconciliation Report • Stock Statement (Summary Reports) • Stock Ledger Item-Wise
5.2 Population Projection
Nellore district town is around 21 Km from the project site. As of 2011 Census, Nellore city had a population of 505,258, constituting 257,043 males and 248,215 females. All local labors on contractual basis will be engaged during the construction phase. As such, no major population influx is estimated at project site during construction phase. During operation phase approx 270 employees (including permanent and contractual) will be engaged for the project. There will be minor population influx during the operation phase of the project.
5.3 Assessment of Infrastructure Demand
Necessary infrastructure to carry out the proposed activities will be developed at the project site.
Fire Station equipped with water foam fire tender
Occupational Health Centre equipped with experience Doctor and medical staff Power House to meet the power demand of the site
Septic tank followed with soak pit
5.4 Amenities/ Facilities
Following facilities/amenities will be developed at the project site Dining /canteen Facility
Medical facilities
Recreation Facility - DTH, TV, Games, Gym etc. Communication network (internet and phone service) Drinking water facility
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6. PROPOSED INFRASTRUTURE
6.1 Industrial Area (Processing Area)
Different processing area/facility will be developed at the site, listed in the table below:-
Sl. No. Description of UNIT/ Section
1. Train A NPK Plant – Granulation Section
2. Train A NPK Plant – Drying and Cooling Section 3. Train A NPK Plant – Raw Material Handling 4. Train A NPK Plant – Air dehumidification 5. Train B NPK Plant – Granulation Section
6. Train B NPK Plant – Drying and Cooling Section 7. Train B NPK Plant – Raw Material Handling 8. Train B NPK Plant – Air dehumidification
9. NPK Plant Raw material storage & Handling (common for NPK train A / train B)
10. NPK plant Bulk silo, Screen house and Product handling (common for NPK train A / train B)
11. Bagging plant (common for NPK train A / train B) 12. Raw water Pre-treatment & process water unit 13. Cooling Tower Area
14. Plant & Instrument Air system 15. Auxiliary Boiler
16. Emergency Diesel generator 17. Fuel oil storage
18. Chemical Storage
19. Raw water & Fire Water Storage tanks & DM Water Unit 20. Ammonia storage & refrigeration system
21. Phosphoric acid storage 22. Sulphuric Acid Storage
23. Central Control Room & Laboratory
24. Outdoor switchyard and main 11kV substation 25. O&U Substation cum MCC Room
26. NPK Substation cum MCC Room (common for NPK train A/ train B) 27. Bagging Plant-MCC room
28. Empty Bag Storage Area
29. Neutralization & Waste Water Pit 30. Effluent Treatment Plant
31. Water Storage Reservoir 32. Security
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Sl. No. Description of UNIT/ Section
34. Car arking
35. Weigh bridge & Cabin for raw material 36. Fire Station
37. First Aid Room 38. Workshop 39. Warehouse
40. Weigh bridge & Cabin for product 41. Truck Parking for product
6.2 Administrative Area (Non Processing Area)
Administrative block for support activities such as P&A, HR, Finance & account, purchase, store labor canteen medical room etc., and guest house will be developed.
6.3 Green belt
Green belt area will be developed at the project site as per the norms and corporate responsibility. Land other than the industrial use will also be utilized for the development of green belt. Local or indigenous species of plants and trees will be used for the development of green belt area.
6.4 Social Infrastructure
Different activities for the benefit and betterment of the local people, like providing free medical facilities through the medical health centre, fire tender services to address local fire calls, drinking water through ring wells, furniture and books for the schools, scholarships for the needy and deserving students, public facilities / infrastructure development etc. will be done by the KRIBHCO in assistance with the government.
6.5 Connectivity
The entire internal road will be developed with a proper planning considering all safety measures.
Project site is well connected with all means of the transport.
Railway Station: Venkatacalam railway station at a distance of 8.26 km from the project site.
Airport: Tirupati at a distance of 120 km from the project site.
Highway: Port Road is connecting NH-5 at a distance of around 12 km from project site.
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6.6 Drinking Water Management
Water supply requirement will be met through a full-fledged water supply system to meet the needs of process, housing and workers camp facility.
The source of water is Sarvepally reservoir which is about 2 kms from the project site. Ground water will also be used with consent of concern authority.
6.7 Sewerage System
A proper planned sewage system will be implemented for the domestic waste water generated inside the battery limit.
6.8 Industrial Waste Management
Modern plants are designed as zero liquid effluent, all liquids being recovered into the reaction section.
All industrial waste and spillages will be collected and re-introduced in the plant. As for process waste water, suitable Effluent treatment plant will be installed so as to comply as per APPCB guide line. In order to prevent underground water pollution, the process area is paved with concrete & acid proof brick lining (wherever required) and oil, acid and rain water falling in the area is collected in a pond for further treatment. This waste water is discharged to the waste water treatment plant for treatment.
6.9 Solid Waste Management
All solid waste and spillages will be collected and re-introduced in the plant through a proper conveyer belt system. All other municipal solid waste will be treated and recovered water will be recycled. The left out solid may be used a manure and balance, if any, will be collected and dumped at a local municipal authorized dumping site.
6.10 Power Requirement & Supply / Source
Maximum Power consumption: 9.5 MW
It is considered to receive power from grid at 132kV in outdoor switchyard from Substation of APTRANSCO. This will be stepped down to 11kV. 11 kV main distribution board shall be provided in main substation to distribute power to various plant substations.
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7. REHABILITATION AND RESETTLEMENT PLAN
Proposed project site is coming in the approved industrial estate by Government of Andhra Pradesh (GoAP). Thus, there is no population affected hence no R&R plan is applicable.
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8. PROJECT SCHEDULE & COST ESTIMATES
8.1 Tentative Project Schedule
Scheduling of the project is performed by the Planning Manager of the team. All aspects under the project scope such as pre Project activities, Engineering, Procurement, Construction, Pre-commissioning, Commissioning etc. are taken care of in the detailed schedule.
Overall the pre project activities such as land survey, geotechnical survey, boundary etc. and other pre-project approval such as Environment Clearance, Right of use/way from the relevant Authority will take 12- 14 months. After that the tentative time period taken for construction is 24 months and 6 months for pre-commissioning activities. Detailed project schedule in pert chart is enclosed as Annexure 3 describing break-up of various project execution stages.
8.2 Project Cost
Prevalent tax structure has been considered for estimating the project capital cost for various indigenous & imported items. Various overheads such as insurance, packing, inspection, project management, contingency etc. has been considered as per industry norms for such projects. The project cost comprises of all items such as land & land development, NPK Complex Plant & Associated facilities, Port storage & Facilities, all related civil cost at plat site & port, license & engineering fee, pre-operative cost & IDC, pre-commissioning & commissioning charges etc.
The total investment on Project is estimated to be Rs 1517 crore.
8.3 Economic Viability of the Project:
The concession offered by AP govt. like development of infrastructure, concession on power and VAT for seven years have been considered in financial analysis of the project.
From a financial perspective as well, the project is found to be economically viable. For base case, the financial analysis result show the project IRR of 12.53% (pre- tax) and Payback period of 6.54 years. The average Debt Service Coverage Ratio is ―1.20X‖.
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9. ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)
India is almost fully depending on imports of Phosphatic fertilizers or the intermediates required for production of NPK Products like Phosphoric acid, Rock Phosphate, Murate of Potash, Ammonia etc. Indian Fertilizer companies produced around 32.4 million tonnes of fertilizer in the year 2012-13 However, the total availability was short of demand and was met through imports. The production of NPK has declined over recent years, around 6.2 million tonnes in FY12-13 from 7.8 million tonnes in FY11-12.
To meet the India’s requirement of NPK, KRIBHCO proposed to established NPK complex with two NPK units near to Krishnapatnam Port, Nellore District, Andhra Pradesh. In place of finished product import, the project USP is to use import of fertilizer intermediates and turn them into fertilizer products as are required for local need of nutrients for the soil. The proposed market area for products from this project is primary hinterland states namely Andhra Pradesh, Karnataka, Tamil Badu and parts of Maharashtra, which are accounting for about 60% complex fertilizer consumption in India. The outputs NPK from the fertilizer complex will cater to the local & nearby areas of demand.
Ammonia and Phosphoric Acid are the key raw materials required for the project. Ammonia can be sourced from domestic sources or through imports. Phosphoric acid will need to be imported from the Phosphate rich countries such as Morocco, Jordan, South Africa etc. KRIBHCO will make suitable arrangement for securing this vital raw material supply.
The proposed site in the Krishnapatnam port area is ideal for a Phosphatic fertilizer project because of easy access to port, excellent Road / rail connectivity, good infrastructure, ancillary industry in vicinity and Power / water supply resource availability.
From a product portfolio standpoint, KRIBHCO shall become one of the biggest fertilizer Industries in India to have both Nitrogenous and Phosphatic fertilizers under single entity. Installing production facilities for NPK shall facilitate Kribhco to become complete plant nutrition provider in India.
The proposed project will result in the direct and indirect employment opportunities to the unskilled/skilled regional/local people as well as increase in business opportunities.
