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LIMITED

Pre-feasibility report for Fertilizer Blending

Unit for Customized NPK Production, GT,

HRSG, Atmospheric Ammonia Storage Tank

& Urea Granulation Unit for Fertilizer

Production at Zuarinagar, Sancoale Village,

Mormugao Taluka, South Goa District, Goa.

JUNE 2015

Kadam Environmental Consultants w w w . ka d a m en v i r o . c o m

Envi ronment for Deve lopment

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CHEMICALS LTD.

EXPANSION OF FERTILIZER

PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA

CONTENTS

KADAM ENVIRONMENTAL CONSULTANTS | JUNE 2015 2

ZUARI AGRO CHEMICALS LIMITED Pre-feasibility Report for Fertilizer Blending Unit for Customized NPK Production, GT, HRSG, Atmospheric

Ammonia Storage Tank & Urea Granulation Unit for Fertilizer Production at Zuarinagar, Sancoale Village, Mormugao Taluka, South Goa District, Goa.

© Kadam Environmental Consultants (‘Kadam’), June 2015

This report is released for the use of the ZUARI AGRO CHEMICALS LIMITED, Regulators and relevant

stakeholders solely as part of the subject project’s Environmental Clearance process. Information

provided (unless attributed to referenced third parties) is otherwise copyrighted and shall not be used

for any other purpose without the written consent of Kadam.

PROJECT DETAILS

Name of

Publication

Pre-feasibility report for Fertilizer Blending Unit for Customized NPK production, GT,

HRSG, Atmospheric Ammonia Storage Tank & Urea Granulation Unit for Fertilizers

Production at Zuarinagar, Sancoale Village, Mormugao Taluka, South Goa District, Goa.

Project Number

1313481606,

1313581606,

1520851606

Report No. Version 1 Released June 2015

Prepared &

Managed By Mohammed Anas Patel Released By

Mr. J. A. Rathi,

EIA coordinator

CONTACT DETAILS

Vadodara (Head Office)

871/B/3, GIDC Makarpura, Vadodara, India – 390 010.

E: [email protected]; T:+91-265-3001000; F: +91 265 300106

Delhi / NCR

SPAZE IT PARK, Unit no. 1124, 11th Floor, Tower B 3, Sector 49, Near Omaxe City Centre mall,

Sohna Road, Gurgaon -122 002 (Haryana)

E: [email protected]; T: 0124-4242430; M:+91-98998-04300

DISCLAIMER

Kadam has taken all reasonable precautions in the preparation of this report as per its auditable quality plan.

Kadam also believes that the facts presented in the report are accurate as on the date it was written. However,

it is impossible to dismiss absolutely, the possibility of errors or omissions. Kadam therefore specifically

disclaims any liability resulting from the use or application of the information contained in this report. The

information is not intended to serve as legal advice related to the individual situation.

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CONTENTS


CONTENTS

1 EXECUTIVE SUMMARY ................................................................................. 5

2 INTRODUCTION .......................................................................................... 6

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT ................................................. 6

2.1.1 Proposed Project ................................................................................. 6

2.1.2 Project Proponent ................................................................................ 6

2.2 BRIEF DESCRIPTION OF THE PROJECT .................................................................... 6

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO REGION .............................................. 7

2.3.1 Customized NPK fertilizers ...................................................................... 7

2.3.2 Steam Power Generation Unit ................................................................. 9

2.3.3 Atmospheric Ammonia Storage Tank ....................................................... 10

2.3.4 Urea Granulation Plant ........................................................................ 10

2.4 EXPORT POSSIBILITY ................................................................................... 11

2.5 DOMESTIC/ EXPORT MARKETS ......................................................................... 11

2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT ........................... 13

3 PROJECT DESCRIPTION ............................................................................. 14

3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECTS, IF ANY. ........ 14

3.2 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC LOCATION AND PROJECT BOUNDARY &

PROJECT LAY OUT) WITH COORDINATES. ....................................................................... 14

3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED SITE,

PARTICULARLY THE ENVIRONMENTAL CONSIDERATIONS. ....................................................... 15

3.4 SIZE OR MAGNITUDE OF OPERATION................................................................... 15

3.5 PROJECT DESCRIPTION WITH PROCESS DETAILS........................................................ 15

3.5.1 Customized Blending Unit .................................................................... 15

3.5.2 Atmospheric Ammonia Storage Tank ....................................................... 16

3.5.3 GT & HRSG (SPG) .............................................................................. 18

3.5.4 Urea Granulation Plant ........................................................................ 20

3.6 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, LIKELY SOURCE, MARKETING AREA OF

FINAL PRODUCTS, MODE OF TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT. ......................... 23

3.7 RESOURCE OPTIMIZATION/ RECYCLING AND REUSE ENVISAGED IN THE PROJECT. ...................... 24

3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY/POWER REQUIREMENT AND SOURCE. .................. 24

3.8.1 Water ............................................................................................ 24

3.8.2 Power ............................................................................................ 25

3.8.3 Steam ............................................................................................ 25

3.9 QUANTITY OF WASTE TO BE GENERATED (LIQUID AND SOLID) AND SCHEME FOR THEIR MANAGEMENT

/DISPOSAL ...................................................................................................... 25

4 SITE ANALYSIS ......................................................................................... 26

4.1 CONNECTIVITY ......................................................................................... 26

4.2 LAND FORM, LAND USE AND LAND OWNERSHIP ........................................................ 26

4.3 TOPOGRAPHY (ALONG WITH MAP) ...................................................................... 26

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CONTENTS


4.4 EXISTING LAND USE PATTERN. ......................................................................... 27

4.5 EXISTING INFRASTRUCTURE ............................................................................ 28

4.6 SOIL CLASSIFICATION .................................................................................. 28

4.7 CLIMATIC DATA FROM SECONDARY SOURCES ........................................................... 29

4.8 SOCIAL INFRASTRUCTURE AVAILABLE ................................................................... 29

5 PLANNING BRIEF ...................................................................................... 30

6 PROPOSED INFRASTRUCTURE .................................................................... 31

6.1 INDUSTRIAL AREA (PROCESSING AREA) ................................................................ 31

6.2 RESIDENTIAL AREA (NON-PROCESSING AREA) ......................................................... 31

6.3 GREEN BELT ............................................................................................ 31

6.4 SOCIAL INFRASTRUCTURE .............................................................................. 32

6.5 CONNECTIVITY (TRAFFIC AND TRANSPORTATION ROAD/ RAIL/METRO/WATER WAYS ETC.) ............ 32

6.6 DRINKING WATER MANAGEMENT (SOURCE & SUPPLY OF WATER) ...................................... 32

6.7 SEWAGE SYSTEM ....................................................................................... 32

6.8 INDUSTRIAL WASTE MANAGEMENT ..................................................................... 32

6.9 SOLID WASTE MANAGEMENT. ........................................................................... 33

6.10 POWER REQUIREMENT & SUPPLY/ SOURCE. ......................................................... 33

7 REHABILITATION AND RESETTLEMENTS (R&R) PLAN .................................... 34

8 PROJECT SCHEDULE AND COST ESTIMATE .................................................... 35

8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION......................... 35

8.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF THE PROJECT.

35

9 ANALYSIS OF PROPOSAL ........................................................................... 37

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EXECUTIVE SUMMARY


1 EXECUTIVE SUMMARY

Name of Company Zuari Agro Chemicals Ltd

Capacity of Plant

Customized Blending Plant: 30 TPH

Customized NPK Grade Fertilizer,

GT: 25 MW along with MP Steam (37

Kg/Cm2g),

HRSG: Unfired capacity of 50 MT/hr. (70

MT/hr. with supplementary firing) &

AAST: 1X5000 MT Atmospheric Ammonia

Storage Tank,

Urea Granulation Unit: Expansion of

Urea production from 1500 TPD to 1800

TPD.

Urea Prilling: 1200 MTPD+ Urea

Granulation Unit: 600 MTPD

Location of Plant Zuarinagar-Goa

Project Cost

Customized Plant

Steam Power Generation

Atmospheric Ammonia Storage Tank

Urea Granulation Plant

Total Project Cost

(In Crore)

50.00

200.00

40.00

498.60

788.60

Raw Material Requirement

- Various Raw Materials

- Sulphuric Acid (98%)

- Natural Gas

30 Tons/Hour

2 Tons/Hour

2,000 SCMD (Customized Plant)

0.17 MMSCMD (GT & HRSG)

Water Supply & Source

Existing Source-PWD & Water Resources

Department, Govt. of Goa, Goa & Rainwater

Harvesting captive dam at Site.

Total Power Requirement 2 MW through GT

Project Timeline Schedule

Customized Plant

Steam Power Generation

Atmospheric Ammonia Storage Tank

Urea Granulation Plant

18 months

18 months

16 months

18 months

Debt :Equity Ratio 1.5 :1

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA INTRODUCTION


2 INTRODUCTION

2.1 Identification of project and project proponent

2.1.1 Proposed Project

Proposed project is expansion/modernization of existing projects. Brief details of proposed products

requiring expansion/modernization and falling under ‘Project or Activities’ listed within the Category to

the EIA Notification dated September 14th, 2006 (amended till date) are given in Table 2-1.

Table 2-1: Schedule of Proposed Project

S No. Proposed expansion and modernization Project or Activity Category

1 Customized NPK Plant: 30 TPH

5(a), Chemical Fertilizers A

2

Steam Power Generation Unit:

GT: 25 MW along with Medium Pressure (MP) Steam (37

kg/cm2g)

HRSG: Unfired capacity of 50 Mt/hr. (70 MT/hr. with

supplementary firing)

3 Atmospheric Ammonia Storage Tank: 1 X 5000 MT

4

Urea Expansion (Granulation): 300 MTPD (1500 MTPD

to 1800 MTPD i.e. Urea Prilling: 1200 MTPD+ Urea

Granulation: 600 MTPD)

2.1.2 Project Proponent

Zuari Agro Chemicals Limited (ZACL) formerly known as Zuari Holdings Limited, is part of

ADVENTZ group of companies. Adventz has been created by the coming together of some of India’s

leading companies with a combined turnover of around USD 3.0 Billion. It was incorporated in the year

1967 by late Dr. KK Birla as a joint venture with US Steel Corporation, USA. It was set up, in Goa, to

manufacture Urea, NP/NPK fertilizers. The plants were commissioned and commercial production

commenced during the period of 1973-75.

ZACL operates a fertilizer complex consisting of an Ammonia plant, a Urea plant, NPK plant ‘A’ and

NPK plant ‘B. Ammonia plant commissioned in 1973 is based on Naphtha as feedstock and fuel. Urea

plant also commissioned in 1973. NPK plant ‘A’ commissioned in 1975 and NPK plant ‘B’ commissioned

in 1984. The present operating capacities are 1210 MTPD for Urea Plant, 702 MTPD for Ammonia

Plant, 1230 MTPD for NPK-A and 1296 MTPD for NPK-B Plant. Also offsite and utilities of required

capacity is available to support above production capacities.

ZACL further went ahead with plan for Naphtha c/o to NG / RLNG and revamp of production units and

obtained Environmental Clearance for it in Sept., 2009. The Naphtha c/o to NG/RLNG project was

implemented in April, 2011 and revamp of production plants are under development for

implementation.

2.2 Brief Description of the Project

A brief description of the project’s nature, size and location is given in Table 2-2.

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Table 2-2: Brief Description of the Proposed Project

S. No. Details Description

1 Nature Chemical Fertilizer

2 Size Shown in Table 2-1.

3 Plot Area

Area of Customized Plant- 1,125 M2

Area of GT - 1,952 M2

Area of HRSG- 1,860 M2

Area of Atmospheric Ammonia Storage Tank- 7,999 M2

Urea Granulation Plant- 1,500 M2

4 Location Plot Survey no. 110 to 252, Zuarinagar, Sancoale Village, Mormugao

Taluka, South Goa District, Goa State.

5 Cost of the Project ~ INR 788.60 Crore

2.3 Need for the project and its importance to region

2.3.1 Customized NPK fertilizers

A healthy soil would ensure proper retention and release of water and nutrients, promote root growth

and resist degradation. Due to increased food grain production as a result of excessive & skewed

fertilizer use, it has resulted in poor soil health. Thus response of fertilizer to grain yield per hectare

has declined. The Indian soil have shown deficiency of S, Zn, B, Mo, Fe, Mn and Cu to the tune of 41,

49, 33, 22, 12, 5 and 4 % respectively. According to nutrient response study of irrigated areas it has

been established that grain yield per hectare per ton of nutrient is decreasing. The same is depicted in

the trends produced below.

0

0.5

1

1.5

2

2.5

1970 1975 1980 1985 1990 1995 2000 2005

Gra

in y

ield

(t/

ha)

0

50

100

150

200

250

Fer

tilis

er a

dd

ed (

kg/

ha)

Control N response P response K response Fertiliser added

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Government of India has taken initiatives to promote balanced fertilization to increase crop

productivity. Through survey of soil sampling across the country, it was established that the nutrient

deficiency has different profile in different regions. Thus it is region, soil and crop related and site

specific nutrient management is required. The bulk blending by farmers have not been found so

effective because mixing by them remain disproportionate without backed by proper soil testing,

segregation of granules due to different size and poor response by roots. The Indian farmers adopted

same practice for all the crops. Department of Agriculture introduced a new provision under clause 20

A of FCO, 1985 to include any potential new fertilizer for production and trial in the country and

Customized fertilizers have been added in April, 2008 to balance fertilization demands, specific

formulation to produce a blended fertilizer containing the required major and micro nutrients and has

already approved total 13 grades of customized NPK to be produced for application in various districts

of Maharashtra and Karnataka. Considering the requirement of modern soil testing laboratory, the

government has allowed large fertilizer manufacturers to engage themselves in soil testing and

production of Blended / Customized fertilizer for the promotion of balance fertilization.

ZACL also took initiatives and carried out field tests of these Customized NPK fertilizers in 2010 / 2011

and submitted the results to the concerned departments.

There is enough evidence that Blended / Customized fertilizers are widely used in developed countries

which cater to the specific soil, crop and the climate. The production of straight fertilizers are

centralized in a big units and the production of Blended / Customized fertilizers are decentralized,

managed in a small set up. In western countries due to large farm holding and mechanized

agriculture, the farm owners themselves have set up of Fertilizer Blending Units. China has taken lead

with 4500 plants, more than 500 grades and annual production capacity of 2000 lakh MT for Blended /

Customized fertilizer. The statistics above indicates, there is a need for a serious consideration to

produce good quality Blended / Customized fertilizers in the country.

0

5

10

15

20

25

30

35

40

45

50

2003 2010 2025

Year

Nutri

ents

0

50

100

150

200

250

300

350

400

Food

grai

n pr

oduc

tion

Foodgrain production (Mt)NPK Demand (Mt)

NPK Consumption (Mt)NPK Gap (Mt)

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As a prudent organization, to promote the balance fertilization, ZACL decided to set up a 30 TPH

Fertilizer Blending Unit in the existing fertilizer complex at Zuarinagar, Goa so as to utilize the benefit

of available land, infrastructure and utilities.

The project team from ZACL has reached an understanding for setting up the project. Subsequently

we explored with various engineering companies for the services of engineering work for the proposed

project development and reached to conclusion of setting up the proposed project. This “Project

Report” has been prepared by project team of Zuari based on inputs from its study of site location,

market analysis and financial viability. All the important facets of project are explained in depth in

subsequent chapters.

2.3.2 Steam Power Generation Unit

The existing Steam-Power Generation (SPG) facility at ZACL, Goa consists of 2+1 HP Steam

Generation Boilers, a 7.5 MW Turbo Generator (TG) Set and a 6.075 MW (ISO) Diesel Generator (DG)

Set. While the Boilers and the TG Set services the Steam and Power requirements of the Ammonia,

Urea and Utilities Plants, the DG Set (and its associated LP Boiler) services the Steam and Power

requirements of the NPKA, B Plants.

To complement/supplement the proposed revamp of Ammonia, Urea as well as the NPK-A, B plants

for which EC is already issued by MoEF, it is now proposed to revamp the SPG facility too. The thought

process to revamp the SPG facility stems from the fact enumerated below:

TG Set

Has reached a point of being obsolete;

Heat Rate lower than a state of art Gas Turbine based Power Generation facility;

Reliability questionable;

Recurring maintenance cost = Rs. 50 Lacs/Annum.

DG Set

Poor Reliability; Frequent breakdowns;

Very highly maintenance intensive – High recurring cost Rs. 2 Crores/Annum;

Straight Changeover to NG/RLNG – Impractical.

In view of the above mentioned facts, it is proposed to replace the 2+1 HP Boilers, TG Set & DG Set

with a Gas Turbine (GT) along with a downstream HRSG (Heat Recovery Steam Generator). The

Revamp Ammonia, Urea & NPK-A, B plants facilitates the installation of 25 MW (ISO Rating) GT along

with MP Steam (37 Kg/cm2g) generating HRSG with a unfired capacity of 50 MT/hr (70 MT/hr with

supplementary firing). This concept of SPG Revamp elegantly closes the Steam & Power Balance of

the entire factory complex.

It is well known fact that the efficiency of an Electrical Motor Drive is far better than a Condensing Turbine Drive. Taking advantage of this, it is proposed to change the drivers of the following machinery from Condensing Turbine to Motor:

Process Air Compressor in Ammonia plant

Ammonia Plant Cooling Tower Pumps

Urea Plant Cooling Tower Pumps

Urea Plant Recycle Carbamate Pump

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When the revamp takes effect, the Ammonia plant not only becomes self-sufficient in terms of Steam

requirement, it also turns into a net exporter of MP Steam to Urea plant. In the Urea plant, the CO2

compression system would be revamped to a state of art single centrifugal compressor driven by an

Extraction-Condensing Turbine whose Steam demand will be met through a combination of export

steam from Ammonia plant and Steam generated in the HRSG downstream of GT.

With the removal of DG Set, the Steam-Power requirement of the NPK-A, B plants will be serviced by

the GT+HRSG combination itself.

This revamp of SPG facility would result in the following:

CHP Efficiency – FERC method

TG + DG + MP Steam to Process: 11.8 MW + 110.5 MT/hr – 48.2%

GT + HRSG (SH to process): 23.3 MW + 50 MT/hr – 57.7%

SPG Facility becomes “State of Art”

Higher Reliability and Efficiency

Reduction in Specific Energy Consumption of Urea by 0.4 GCal/MT

Reduction in Raw Water Consumption to the tune of 70 m3/hr

Lower Fuel consumption; consequently, lower GHG Emission

Conservation of Natural Resources viz. Water & Natural gas

The proposed revamp of SPG facility would not only enable ZACL, Goa to narrow the gap with the

1990’s vintage plants in terms of Specific Energy Consumption of Urea, but also achieve Sustainability

and Reliability.

2.3.3 Atmospheric Ammonia Storage Tank

Presently the Ammonia received via ship is being stored in 1 x 5000 MT Atmospheric Storage Tank at

Vasco Port. Ammonia from this tank is transferred to the Zuarinagar Plant through insulated road

tankers. The ammonia received at Plant @ (-) 28 to (-) 30°C and is unloaded into 2 x 3000 MT

Spheres. As a safety measure, decommissioning of existing Ammonia storage Horton spheres and to

install 1 x 5000 Atmospheric ammonia storage tank at Zuarinagar Plant. New AST with its auxiliary

facilities will be housed in the Naphtha storage tank farm area after removing the Naphtha tanks and

clearing the site. Ammonia from new AST shall be transferred to NPK Plants.

2.3.4 Urea Granulation Plant

Urea, the largest finished nitrogen fertilizer product, is traded globally. Urea is a commodity product

with an important influence over most other nitrogenous fertilizer prices. Urea is sold mainly as a

fertilizer for use as such (direct application) or to a lesser extent for blending with other phosphatic

and potash fertilizers to produce NP/NPK compound fertilizers.

DEVELOPMENT OF UREA INDUSTRY RUNS parallel to build up of ammonia in the country. Urea being

the main product for supply of nitrogen, urea plants were installed along with all ammonia plants with

a few exceptions.

The gap in demand and supply of urea - a key fertiliser - is projected to rise to 11 million tonnes (MT)

by the 2016-17 fiscal. "There is an urgent need for construction of new urea projects to fill the

projected consumption and production gap of 11 million tonnes by the year 2016-17", industry body

Fertiliser Association of India (FAI). According to a report of the Working Group set up by the Planning

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Commission for the 12th Five Year Plan (2012-17), India needs to invest Rs 40,000 crore in the

fertiliser sector to increase the country's urea production capacity.

Viewed against the background of continuing gap for urea as also the long-term objective of achieving

self-sufficiency in agricultural production and thereby minimizing imports.

2.4 Export Possibility

The proposed project shall be catering the soil and crop specific fertilizer needs of the existing nearby

marketing area in Maharashtra and Karnataka. The distribution of fertilizer shall be done by trucks

through marketing network of ZACL.

2.5 Domestic/ Export Markets

Zuari Agro Chemicals Ltd has marketing offices spread over a wide marketing area covering the states

of Goa, Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu. Our marketing head office is based

at Zuarinagar Goa. The wide area coverage ensures that we are able to meet the needs of the Indian

farmer. Zuari has over 2,000 dealers and 5,000 sub dealers that market its various brands of fertilizers

and other agri inputs. Throughout our marketing territories, Zuari seeks to facilitate farming and

farmers, guiding them in scientific agricultural practices that help in improving crop yields.

With NBS in place and favorable encouragement from government to industry, the fertilizer

manufacturing companies took initiatives for production and promotion of customized fertilizer in the

country. TCL, Babrala became the first fertilizer company to establish the blending Plant facility for

production of Customized NPK fertilizers in the year 2009. Subsequently few other companies have

come forward to establish the similar Blending plant facility such as NFCL, Coromandal and IGFL. ZACL

also decided to move ahead with setting up of a 30 TPH Fertilizer Blending Unit for production of

Customized NPK fertilizers.

The company has taken market development and awareness program through activities such as crop

seminar through govt. scientist representing universities and Krishi Vikas Kendras, crop specialist,

training for KHARIF, RABI and annual season crops, display of wall paintings where it will create an

impact and display in ZACL product-shed in weekly bazaar day, festival day, fair days, public meetings

and other traditional days.

Company has also carried out in-depth study of market potential Taluka wise in its marketing areas.

The graphical presentation of such study results are given below:

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RED GRAM

SOYABEEN

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COTTON

2.6 Employment Generation (Direct and Indirect) due to the project

This project would generate opportunities for Employment both in Skilled and unskilled categories.

Skilled manpower would consist of Plant management Staffs, Production Staffs and other office staffs.

Unskilled manpower would consist of Production workers, Drivers, Office assistants, Crane operators,

Pay loader operators, Bagging and loading workers etc.

Apart from the estimated direct employment to more than 100 during construction stage and indirect

employment to more than 100, we envisage Local civil, Mechanical contractors would be benefitted

from the proposed project.

Officers 5 nos.

Skilled Workers 15 nos.

Unskilled Workers 20 nos.

Contractual 60 nos.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA PROJECT DESCRIPTION


3 PROJECT DESCRIPTION

3.1 Type of Project including interlinked and interdependent projects, if

any.

Proposed project is expansion/modernization of existing projects. Proposed products requiring

expansion/modernization and falling under ‘Project or Activities’ listed within the Category to the EIA

Notification dated September 14th, 2006 (amended till date) is 5(a) under Category ‘A’.

As ZACL is planning for steam power generation by GT & HRSG (SPG) using NG as a fuel which is

interlinked and interdependent project for Fertilizer production unit.

3.2 Location (map showing general location, specific location and project

boundary & project lay out) with coordinates.

Location map showing general location, specific location with project boundary & project lay out along

with coordinates is given in Annexure 1 & Annexure 2.

Coordinates of proposed plants is given in Table 3-1.

Table 3-1: Coordinates of the proposed project

Sr.

No.

Proposed Plant Latitude Longitude

1 Atmospheric Ammonia Storage

tank

A 15°22’28.92”N 73°52’14.52”E

B 15°22’29.49”N 73°52’17.14”E

C 15°22’26.16”N 73°52’7.72”E

D 15°22’25.68”N 73°52’15.14”E

2 Customized Blending A1 15°22’26.28”N 73°52’13.19”E

B1 15°22’26.49”N 73°52’14.68”E

C1 15°22’25.73”N 73°52’14.86”E

D1 15°22’25.49”N 73°52’13.37”E

3 GT, HRSG A2 15°22’32.69”N 73°52’20.05”E

B2 15°22’33.07”N 73°52’21.03”E

C2 15°22’31.14”N 73°52’21.39”E

D2 15°22’30.70”N 73°52’18.36”E

E2 15°22’31.75”N 73°52’18.21”E

F2 15°22’32.07”N 73°52’20.21”E

4 Urea Granulation Plant A3 15°22’28.47”N 73°52’20.81”E

B3 15°22’28.65”N 73°52’21.82”E

C3 15°22’27.04”N 73°52’22.06”E

D3 15°22’26.92”N 73°52’21.07”E

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3.3 Details of alternate sites considered and the basis of selecting the proposed

site, particularly the environmental considerations.

Zuari Agro Chemicals Ltd. having adequate existing infrastructure, utilities support and land as per

requirement for Proposed plant within existing fertilizer complex at Zuarinagar, Goa. The proposed

location is well connected with road and rail. It is about 0.5 km from National Highway 566 and about

5 Km from Verna and Consolim Railway stations. The MPT port located at a distance of 8 km is well

connected with road network and can be used to transport raw materials. The plant is having its own

railway siding for rake movement.

3.4 Size or Magnitude of Operation

Size or Magnitude of proposed operation is given in Table 2-1 & Table 2-2.

3.5 Project description with process details

Zuari have engaged the services of Jacobs Engineering India Ltd for the engineering of this project.

The Basic Engineering Package has been already completed and under review by Jacobs, USA and the

Detail engineering activities are expected to start very soon. ZACL is also carrying out exhaustive test

studies to transform the Soil & Crop specific Formulations into practical grades.

3.5.1 Customized Blending Unit

The Customized Fertilizer will be produced by bulk blending of various raw materials and it is the

simplest, the most economical and versatile method of producing Customized Fertilizers (N, P, K, S

etc.) along with micronutrients like Zinc, Boron, Molybdenum, Copper etc. The process involves Weigh

Feeding, Size reduction, Mixing, Steam granulation, Drying, Cooling, Coating and Bagging. The plant

has been designed to produce about 20 grades of customized NPK fertilizers as per specific to crop

and specific to site.

The process can be described as follows:

Based on the product grade to be produced the solid fertilizer raw materials from the individual

hoppers are batched and fed to the system. Feed material also contains the recycled undersize

product material.

The feed mixture is crushed to uniform size by special type of crusher and passed through

screens.

Feed material is mixed thoroughly and fed to the rotary drum steam granulator where the

granules are formed by the agglomeration process.

The Low Pressure Steam is fed to the granulator which comes in contact with the material.

From the Granulator the material fed to the rotary dryer which is a co-current dryer. The hot air

for drying is generated in the Hot air generator.

From the dryer the material is fed to the vibrating feeder which separates the lumps and it is fed

to the 1st screen.

The dust generated from the dryer is passed through cyclone separators and Bag filters to remove

the dust materials and fed to the Scrubbers before venting it through the chimney.

The desired product material from the 1st Screen is fed to the rotary cooler.

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Rotary Cooler uses the ambient air for cooling the product material. It is a countercurrent cooler.

The air from the cooler pass through the cyclone separators, Bag filters and wet scrubbers to

chimney through ID Fan.

After the cooler the material is then fed to the series of screens where the fines are separated

from the product mixture and recycled back to the granulator. The recycle ratio is approximately

50%.

The product material of desired size is sent to the coating drum which is a rotary drum where the

final product material is mixed with coloring agents and other additives.

The final product from the coating drum is conveyed to Product storage hoppers which supply the

material to the bagging.

Major Equipment

Steam Granulator drum

Rotary Dryer

Rotary Cooler

Belt / Screw Conveyors

Crushers

Screens

Weigh feeders

Cyclone Separators

Bag filters

Scrubbers

Bucket elevators

Screw conveyors

Coating drum

Blowers

Compressors

Centrifugal Pumps

3.5.2 Atmospheric Ammonia Storage Tank

Liquid ammonia received from road tankers & from Ammonia Plant will be stored in one number

atmospheric Ammonia storage tank having a net effective capacity to store 5,000 MT of liquid

ammonia excluding vapor space. The tank shall be double integrity cup-in-tank, comprising of an

inner cup (in which the liquid ammonia is stored) and an outer tank. The outer tank is designed for full

containment of vapors and liquid in the event of failure of inner tank.

The outer tank shall be insulated with rigid polyurethane foam insulation that shall be formed insitu.

The bottom insulation is foam glass which is a load bearing insulation. The top of the cup is insulated

by mineral wool insulation which is spread on a suspended deck.

The tank shall be equipped with two pressure relief valves to safeguard against overpressure.

(Isolation valves will be provided with suitable mechanical interlock). The tank shall be equipped with

2 nos. of vacuum relief valves to safeguard the tank against vacuum (isolation valves will be provided

with suitable mechanical interlock).

The tank shall rest on elevated foundation for a free passage of air from below, so as to avoid freezing

of foundation. Staircase tower with platform landing up to tank top is proposed for access to tank top

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nozzles. Hand railing shall be provided right around the tank. Internal monkey ladder of CS material

shall be provided for inner cup.

Tank pressure is maintained between 450-900 mm WCg and adequate alarms and interlocks are

provided to safeguard the tank against pressure excursions on either side of the operating range. In

case the tank pressure rises abnormally, HIC control valve is provided for controlled venting to the

flare. A quick closing valve in pump suction line is provided with interlock to close on low tank level.

Refrigeration System:

Liquid ammonia at a maximum rate of 90 T/h is received from the tanker unloading line through a 8”

line and rate of 45 T/h through 6” line from existing ammonia plant line with suitable tapping taken at

Battery limit (B/L) near the tank. Vapors from flashing and boil off are withdrawn by two ammonia

refrigeration screw compressors 10K01 A/B. the gas is compressed and condensed in water cooled

condensers 10E02 A/B and sent to the ammonia receiver 10V02.

Liquid is withdrawn from the receiver under level control. A part of this liquid is flashed in the

economizer 10K01-E01, which operates at a pressure of approximately 1.5 kg/cm2g. Flashed ammonia

vapors at about -15 °C are admitted into the economizer port of the screw compressors. The balance

liquid ammonia from the receiver gets cooled to about – 10 °C in the economizer by the resultant cold

from the above described flashing and is returned back to the storage tank.

Inert, mainly dissolved nitrogen present in liquid ammonia, do not condense and accumulate in the

condenser and receiver causing pressure to build up. Purging of inert is required to prevent this

pressure build-up and it is achieved by means of the pressure controller installed on the receiver. The

purge stream is cooled in economizer to recover ammonia, before sending it to the flare.

Transfer of Liquid Ammonia

Liquid ammonia from tank will be transferred at the rate of 46 m3/h to NPK A/B plants by using the

ammonia transfer pumps 10 P01 A/B and existing ammonia preheater.

Flare System

Hot flare system shall be provided for the ammonia tank. Flare system shall be sized considering

future requirement of additional 5000 MT tank. The ammonia vapor pressure built up in the storage

tank in the unforeseen event of an emergency shall be diverted to flare system. The inert built-up in

the system is also let out to the flare under pressure control in the receiver.

Thermal relief valves are provided in sections of pipelines where liquid ammonia can get blocked in.

The relief valves discharge into a header, which is routed to a drain pot 10 D01. The drain pot is

vented to the storage tank in normal case or to the flare by means of three-way valve in case of upset

condition.

List of major safety interlocks is given in Table 3-2.

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Table 3-2: List of major safety interlocks

Sr. No. Process Variable Action

1. Tank Pressure High

Close HIC control valve on inlet line to tank with alarm. Pre-

alarms provided. In case of extremely high pressure, emergency

venting to flare is done through HIC.

2 Tank Level High Closes control valve on inlet line to tank with alarm. Pre-alarms

provided.

3 Tank level/pressure low Closes the ON/OFF valve on tank outlet with alarm and trips the

ammonia transfer pump with alarm.

4 Annulus level higher then cup

level Closes the ON/OFF valve on tank outlet with alarm.

5 Pump discharge pressure low Trips the ammonia transfer pump.

6 Suction Pressure Low Compressor trips. Pre alarms provided.

7 Discharge pressure high Compressor trips. Pre alarms provided.

8 Discharge temperature high Compressor trips. Pre alarms provided.

9 Lube oil temp. at oil cooler

outlet is high Compressor trips.

10 Oil separator level low Compressor trips.

Major Equipment

Ammonia Storage Tank (5000 MT)

Safety Showers

Wind Sock

Flare package consists of Flare Tip Pilot, Flare stack

Local control stations (LCS) with canopy

Flame proof light fittings

GI earthing & lighting protection materials

Non addressable fire alarm system consisting FA panel, detectors, manual call points, etc.

Ammonia gas detector

Bellows

Firefighting hydrants/ Spray Nozzles

3.5.3 GT & HRSG (SPG)

It mainly consist of compressor, combustor, Gas Turbine, Generator and Heat Recovery Steam

Generator. ZACL will use Natural Gas as Fuel for Steam power Generation Unit.

Combustion (Gas) Turbines

Combustion turbine plants operate on the Brayton cycle. They use a compressor to compress the inlet

air upstream of a combustion chamber. Then the fuel is introduced and ignited to produce a high

temperature, high-pressure gas that enters and expands through the turbine section. The turbine

section powers both the generator and compressor. Combustion turbines are also capable to burn a

wide range of liquid and gaseous fuels from crude oil to natural gas.

The simple cycle efficiency can be increased by installing waste heat boiler onto the turbine’s exhaust.

A waste heat boiler generates steam by capturing heat form the turbine exhaust. These boilers are

known as heat recovery steam generators (HRSG). They can provide steam for heating or industrial

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processes, which is called cogeneration. High-pressure steam from these boilers can also generate

power with steam turbines, which is called a combined cycle (steam and combustion turbine

operation). HRSGs can increase the combustion turbine’s overall energy cycle efficiency up to 80%.

Process Flow Diagram

Process Diagram of proposed SPG unit is given in Figure 3-1.

Figure 3-1: Process Flow Diagram for GT & HRSG (Proposed)

Major Equipment

GT:

Gas Turbine Generating Set

HRSG:

Waste heat recovery boiler

Electrical & Control System

Electrical panels

GT starting system

Ventilation system for GTG enclosure

Combustion air intake system

Make up water system

Water treatment system

Utility distribution system

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3.5.4 Urea Granulation Plant

New Casale Vortex Granulation

The prills from the prilling tower will be screened in the new Prills Screener to separate the fine

product (i.e. prills with a diameter below 1.2-1.3 mm) from the good product (i.e. prills with a

diameter above 1.2-1.3 mm).

The good product will be sent to the existing storage facilities whereas the fine product will be used as

seeds for the new Granulation unit.

This is possible only due to the unique design of Vortex Granulation technology which allows to obtain

an on spec product at the granulator outlet with no need of screening crushing and recycling.

The seeds are lifted to the granulator feeder by a small bucket elevator, or, depending on the plant

layout, via a belt conveyor.

The seeds will be enlarged in the new Vortex Granulator to an average diameter of about 2.8 mm,

spraying the urea solution at 96% after injection of urea formaldehyde solution.

The temperature of the fluidized/rotating bed granulator will be controlled by 5 heaters installed on

the fluidized air.

The granulated product will be preliminarily cooled in the granulator itself to about 75°C and then will

be fed to the new solid cooler to reach 45°C at its outlet.

The solid cooler temperature will be controlled through a dedicated tempered water circuit.

The exhaust air from the granulator will be scrubbed in a scrubbing section in order to reduce the dust

content to 30 mg/Nm3 before it’s delivering to the atmosphere. The urea solution from the scrubbing

system will be sent to the underground drain tank and then recycled to the concentration section as

already mentioned here above.

An additional urea solution tank has been foreseen to prevent the reduction of plant capacity during

the flushing activities required on the new Granulator (8 hrs. of storage has been considered).

The absence of screening crushing and recycling of the granulated product, the height of the

granulator structure will be much lower than the one of the other Granulation technology (i.e. 18-20 m

against 45-50 m of different technologies).

Process Flow Diagram

Process flow Diagram of Urea Production from Prilling Section to Granulation Section is shown in

Figure 3-2 & Figure 3-3.

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EXPANSION OF FERTILIZER PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA PROJECT DESCRIPTION


Figure 3-2: Process Flow Diagram of Urea Production from Prilling Section to Granulation Section

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Figure 3-3: Process Flow Diagram of Urea Production from Prilling Section to Granulation Section

Major Equipment

Vortex Granulator

Granulator Hopper

LP pre-decomposer

Fluid Air pre-Heater

UF Solution Tank

Steam Condensate Tank

Urea Solution Recovery pumps

Drain Tank Pumps

UF Dosing Pumps

Steam Condensate Pumps

Granulator Fluidization Air Fan

Emulsion Air Compressor

Fumes Extraction Fan

Belt Conveyor to Storage Fan

Melt Urea Filter

Granulator Extractor & Feeder

Belt Conveyor from Granulation Unit to Storage

Bucket Elevator

UF Solution Tank Mixer

Scrubbing System

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3.6 Raw material required along with estimated quantity, likely source,

marketing area of final products, mode of transport of raw material and

finished product.

The following raw materials are considered for the proposed Customized Blending Unit:

Urea

Ammonium Sulphate

Di ammonium Phosphate

Mono ammonium Phosphate

Single Super Phosphate

Muriate of Potash

Silica

Bentonite Sulphur

Magnesium Sulphate

Ferrous sulphate

Zinc Sulphate

Disodium Tetraborate

Neem cake

Attapulgite

Calcined Magnesia

Sulphuric acid (98%)

NG: 2000 SCMD

PRODUCT GRADES

Grades Percentage of Nutrient / Micronutrient

N P K S Zn B Mg Fe Si Ca Mn

1 10 30 10 10 0.5 0.1 0 0 0 0 0

2 10 30 10 10 0.5 0.1 0 0.5 0 0 0

3 15 20 10 0 0.5 0.1 2 0.5 0 0 0

4 18 18 10 0 1 0.2 0 0 0 0 0

5 7 20 20 3 0.5 0.2 0 0.5 1 0 0

6 12 12 17 8 1 0.2 0.5 0.5 0 0 0

7 12 32 16 5 0.5 0.2 1 0 0 0 0

8 20 0 15 0 0.5 0.2 0 0 0 0 0

9 15 0 10 0 0.5 0.1 0 0.5 0 0 0

10 20 10 10 3 0.5 0.2 1 0 0 0 0

11 20 0 15 0 1 0.2 0 0 0 0 0

12 15 15 10 5 1 0.2 0.5 0.5 0 0 0

13 14 35 14 5 0.5 0.2 0 0 0 0 0

14 28 10 30 4 0.8 0.2 0.6 1 0 1 0.5

15 0 15 32 0.5 0.5 0.2 0.5 0.5 0 0 0

16 30 11 22 0.7 0 0 0.5 0 0 0 0

17 21 15 0 0.5 0.5 0.5 0.5 0.5 0 2 0

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Grades Percentage of Nutrient / Micronutrient

N P K S Zn B Mg Fe Si Ca Mn

18 20 0 15 3 0.5 0.2 0 0 0 0 0

19 18 18 10 0 0.5 0.2 0 0 0 0 0

20 12 24 12 0 1 0.5 0 1 0 0 0

The following raw materials are considered for the proposed GT & HRSG Unit:

NG: 0.17 MMSCMD

Table 3-3: Details of Raw Material Consumption and Transportation Details

Raw Material UOM Required Quantity Source Mode of Transport

Various finished

fertilizer grades and

micronutrients

Materials (various)

Ton/ Hour 30 Own, Local Suppliers Trucks

H2SO4 (98%) Ton/Hour 2 Local Suppliers Road Tankers

Fine Product from

Urea Prill As per Requirement Own --

3.7 Resource optimization/ recycling and reuse envisaged in the project.

The process for Blending Plant for Customized NPK Fertilizer Production is based on the concept of

total recycling of the entire liquid effluent and achieving zero liquid discharge from the plant.

The generated liquid effluent will be collected in a common sump and shall be reused in the process.

Thus Zero Discharge will be achieved.

Additional domestic waste will be treated in sewage treatment plant & manure will be used in green

belt development.

The Blending Plant Project will generate some solid waste like empty bags (of raw materials), empty

drums etc. There will not be any dust or waste product as all these are being recycled.

Urea recovered in the scrubber is recycled to plant as urea solution.

3.8 Availability of water its source, energy/power requirement and source.

3.8.1 Water

Construction Stage:

Water requirement during the construction phase will be approximately 15 - 20 KLD. Domestic water

requirement for construction workers would be approximately 2 KLD. The water requirement during

this phase will be met from the existing source.

Operation Stage:

During the operation phase of the project, water requirement will be about 250 KLD, which will be

sourced from the existing source of PWD, Water Resources department, Govt. of Goa, Goa.

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3.8.2 Power

The electricity requirement of about 2 MW will be sourced from GT.

3.8.3 Steam

About 1 MT/Hr. steam required for the granulation in Customized Plant would be drawn from existing

plant.

Other infrastructure and plant facilities like Laboratory, First Aid, Safety, firefighting, workshops etc.

shall be used from existing facility.

3.9 Quantity of waste to be generated (liquid and solid) and scheme for their

management /disposal

Generation of used oil, waste oil, and contaminated discarded containers will be disposed of to the

approved recyclers approved by GSPCB/ CPCB as per existing practice.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA SITE ANALYSIS


4 SITE ANALYSIS

4.1 Connectivity

The proposed location is well connected with road and rail. It is about 0.5 km from National Highway

566 and about 5 Km from Verna and Consolim Railway stations. The MPT port located at a distance of

8 km is well connected with road network and can be used to transport raw materials.

4.2 Land Form, Land Use and Land ownership

The entire fertilizer facility is set up on land area of 1013 acres which is industrial land and leveled one

at Zuarinagar, Goa. The proposed unit will be established in existing fertilizer complex as ZACl having

adequate land & other facilities. The area required by proposed unit is already described in previous

section.

4.3 Topography (along with map)

Topographically the area is a coastal plain with marine landforms situated on the slopes of Western

Ghats. Geologically the topography of the Western Ghats is distinctive. Over the entire length of the

Western Ghats the widest belt of forests is around Goa.

Most of the river originate from Western Ghats and drain in the Arabian Sea in the west under

estuarine environment. Primarily the underlying rocks govern the drainage system in the area. The

drainage pattern is generally dendritic type. The river valley is ‘V’ shaped in the western high hill

ranges, but broadens in central midlands and become ‘U’ shaped in the low lands and coastal plains.

The straight coastline suggests the major fault along the west coast. Associated with this fault a

number of weak planes have developed. Western Ghats, which extends in NS to NNW – SSE direction

represent a prominent fault zone. Even though the rock types of Goa Group have suffered

considerable faulting, all the faults are not exposed on surface owing to the extensive cover of laterite.

Topographical map is given in Figure 4-1.

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Figure 4-1: Topographical map

4.4 Existing land use pattern.

The existing fertilizer production facility is in operation since last 38 years. The land is for industrial

use only. Proposed project falls under CRZ between 200 m line to 500 m line.

Distances of project site from sensitive area & water body is given in Table 4-1.

Table 4-1: Distance of Project Site from Sensitive Areas & water bodies

Area Distance in km Direction

Zuari Estuary 2.25 N

Arabian Sea 0.18 S

Dr. Salim Ali bird Sanctuaty 14.28 N

Kumbarjiwa Canal 6.71 NE

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4.5 Existing Infrastructure

ZACL have all the necessary infrastructure to support the operation of Ammonia, Urea, NPK-A and

NPK-B plants. It also has an Argon Plant, a Captive Power Plant of 7.5 MW and a DG Set of capacity

6.05 MW operating on furnace oil, as well as other infrastructure facilities including Utilities, Water

Storage, Electrical sub-stations, Firefighting systems, workshops, railway siding, etc.

4.6 Soil classification

Soils of the district can be classified into 4 types namely:

1. Laterite soil is the major soil type in the district. It is highly porous & permeable, slightly acidic

with low pH values, low in organic matter, Calcium and Phosphorus.

2. Saline soil in the area occurs in the flood plains of major rivers. The soil is deep, poorly drained

and less permeable. It is saline, high in pH and contains humus and organic matter.

3. Marshy soil occurs in low-lying water logged and tidal affected areas.

4. Alluvial soil occurs as very thin strip along the coastline towards western part. It is reddish brown

to yellowish, coarse grained and confined to narrow valleys of rivers. It is well drained, acidic with

low pH and organic content.

The study area is comprised of young alluvial soil of Entisols group. They are formed on surface

features of recent geologic origin, on underlying material that is highly resistant to weathering, or

under conditions of extreme wetness or dryness.

Soil map of proposed area is given in Figure 4-2.

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Figure 4-2: Soil map

4.7 Climatic data from secondary sources

Climatic data from secondary sources is given in Annexure 3.

4.8 Social infrastructure available

The Social infrastructure such as Hospitals, Schools, Colleges, and Clubs, Shopping area, Post Office,

Banks and township are also there for healthy living of employees.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA PLANNING BRIEF


5 PLANNING BRIEF

This is described in previous and subsequent chapters in this report.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA PROPOSED INFRASTRUCTURE


6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (processing area)

The Industrial area shall consist of the following sections (Refer Annexure 2):

1. Batching section with control systems

2. Customized Fertilizer Granulation plant

3. Product bagging section

4. Scrubbing section

5. Air compressor section

6. Effluent treatment section

7. Storage requirement for raw water, raw materials and finished product shall be met with from the

existing facilities.

8. Atmospheric Ammonia storage tank

9. Gas turbine

10. Heat recovery steam generator

11. Flare stack

12. Ammonia gas detector

13. Bellows

14. Fire hydrant network

15. Safety showers

16. Control station, etc.

6.2 Residential Area (non-processing area)

The requirement of following sections shall be met through the existing facilities available in the

complex.

1. Administrative building

2. Truck parking area

3. Weigh bridge area

4. Security cabin

5. Time office

6. Workers Rest room

7. Water storage and pump house

6.3 Green belt

Border of the ZACL is premises mostly covered by the tree species like Acacia auriculiformis,

Azadirachta indica Leucana leucocephala, etc. ZACL has achieved ‘Best Plantation Puraskar’ from Govt.

of Goa during 1997-98. ZACL greenbelt provides home for about 60 species of birds. Every year about

5,000 plant saplings are planted. The lay-out map of the greenbelt is shown below.

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Figure 6-1: Green belt area of ZACL

6.4 Social Infrastructure

The existing facility of Township, Health Centre, Shopping, Club etc. shall be used.

6.5 Connectivity (Traffic and transportation road/ rail/metro/water ways etc.)

The plant is already well connected; therefore no additional provision is required.

6.6 Drinking water management (source & supply of water)

Water requirement will be met through existing supply of PWD, Water Resources Department, Govt. of

Goa, Goa & rainwater harvesting catchment area.

6.7 Sewage system

Additional domestic waste will be treated in sewage treatment plant.

6.8 Industrial waste management

Hazardous waste will be disposed of to the approved recyclers approved by GSPCB/ CPCB as per

existing practice.

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6.9 Solid waste management.

The Proposed Projects will generate some solid waste like empty bags (of raw materials), empty

drums & routine etc. There will not be any dust or waste product as all these shall be recycled. The

solid waste so generated will be disposed of as per rules.

6.10 Power requirement & supply/ source.

Power requirement for proposed plant of 2 MW will be met through GT.

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REHABILITATION AND RESETTLEMENTS

PLAN


7 REHABILITATION AND RESETTLEMENTS (R&R) PLAN

This Project does not require R&R since

there is no inhabitant on site.

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PROJECT SCHEDULE AND COST

ESTIMATE


8 PROJECT SCHEDULE AND COST ESTIMATE

8.1 Likely date of start of construction and likely date of completion

The Basic Engineering is already under development by Jacobs & Casale for Urea and likely to be

completed in 2 months’ time. Further on the basis of experience of setting up such projects as well as

learning from similar projects executed in the country, the estimated overall implementation time

schedule would be about 15 to 18 months for Customized blending plant (Project Implementation

Stage), 16 months for Atmospheric Ammonia Storage tank, 18 months for GT, and HRSG, 18 months

for Urea Granulation plant. It is also envisaged and as mentioned earlier, the lead time of 2-3 months

is required before arriving at zero date.

Approvals from various agencies/institutions/authorities would be required before embarking on

actual/physical implementation of the project.

Some of the approvals required are:

Environmental clearance.

Approval of Agricultural Department for the Customized Fertilizer Grades

Approval of site drawings by Inspectorate of Factories

Consent to establish from State pollution control board.

All the project execution related activities, as mentioned earlier, are interlinked and have an impact on

the final outcome. The execution of the relevant project activities has to be planned and controlled in

such a way that the goals of the project are achieved in the set time frame.

ORGANIZATION DURING PROJECT IMPLEMENTATION

During the initial stage of the project planning, Zuari Project Group will carry out planning,

engineering, procurement activities from our Gurgaon Office. Existing team shall be responsible for the

different activities viz. co-ordination, supervision, execution, project monitoring and cost control.

Materials department will look after the procurement, stores, statutory clearance, if any and

transportation activities. Finance department will look after the finance, accounts and MIS. Zuari

project group shall take care of necessary liaison and obtaining various government and statutory

clearances to meet the project requirements for its completion as per schedule.

As the project progresses, major part of activities like construction, installation, testing, pre

commissioning and commissioning of the new plant equipment shall be arranged by EPCM Contractor.

8.2 Estimated project cost along with analysis in terms of economic viability of

the project.

The present investment proposal is to implement a grass root Blending Plant facility for customized

fertilizer production for a capacity of 30 TPH, SPG Unit, Atmospheric Ammonia Storage tank & Urea

Granulation plant. The Project Cost is estimated at around Rs. 788.60 Crore. The breakup is given in

Table 8-1.

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PROJECT SCHEDULE AND COST

ESTIMATE


Table 8-1: Total Project Cost of proposed project

Sr. No. Project Cost (In Crore)

1 Customized Blending Plant 50

2 Steam Power Generation 200

3 Atmospheric Ammonia Storage Tank 40

4 Urea Granulation Plant 498.60

Total Project Cost 788.60

Building & Civil Works

The civil construction cost estimates, for main plants, has been prepared based on preliminary

standard layout, plant building sizes and Bill of Quantity (BOQ) and data/information available from

similar projects executed by Zuari. The civil cost for offsite and utility facilities has also been estimated

based on experience gained during execution of similar plants in India.

Land & Site Development

The costs of Site Development & land for the project have been estimated.

Plant & Machinery

The costs of equipment and supplies, for the main plants, have been estimated based on the

specification of the equipment and machineries supplied by process licensors and ZACL’s cost data

bank available for the similar projects executed / under execution. For the off-sites, cost estimates are

based on cost data available from ZACL’s data bank and budgetary quotations.

Loan Processing Charges

Considered at 1% of total debt financing.

Working Capital

The following norms have been followed for computations of Working Capital.

Trade Receivables 1.0 month

Subsidy Receivable 2.0 month

Work in Process 3 days

Finished Goods 7 days

Trade creditors 1 month

Interest during Construction (IDC)

The Interest during construction period has been estimated on the basis of the anticipated schedule of

expenditure. It has been assumed that the project would be financed with a debt- equity ratio of 1.5:

1.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA ANALYSIS OF PROPOSAL


9 ANALYSIS OF PROPOSAL

Soil and crop related and site specific nutrient management is required. There is a need for a serious

consideration to produce good quality Blended / Customized fertilizers in the country.

Department of Agriculture introduced a new provision under clause 20 A of FCO, 1985 to include any

potential new fertilizer for production and trial in the country and Customized fertilizers have been

added in April, 2008 to balance fertilization demands, specific formulation to produce a blended

fertilizer containing the required major and micro nutrients. Government of India also has taken

initiatives to promote balanced fertilization to increase crop productivity.

Fertilizer Blending Unit for Customized NPK Grades which involves simple process and no chemical

reaction as such. It is Sustainable yield, reduction in cost of fertilizer & having better economic value

too.

Installation of GT/HRSG will improve efficiency resulting in substantial energy saving. By installing

25MW GT, we intend to convert steam driven turbines to motor driven, thereby making them more

efficient and after installation of GT/HRSG, the atmospheric pollution load will reduce due to lower fuel

consumption.

Atmospheric Ammonia Storage Tank is Modernizing & Sustainability techniques, safest mode of

storage of liquid Ammonia & will reduce risk and enhancement of safety.

Urea Granulation plant will be uniquely designed which is High Energy efficient (Low Power

Consumption), High product quality & Low emission.

All the other project execution related activities, as mentioned earlier, are interlinked and have impact

on the final outcome.

As a prudent organization, to promote the balance fertilization, ZACL decided to set up a 30 TPH

Fertilizer Blending Unit, GT, HRSG, Atmospheric Ammonia Storage tank & Urea Granulation plant in

the existing fertilizer complex at Zuarinagar, Goa so as to utilize the benefit of available land,

infrastructure and utilities.

In addition to these projects will generate direct employment of 100 people. Projects are proposed on

existing land of ZACL, hence rehabilitation or land acquisition is not required which will shorten time

for execution. These project would go a long way in the economic development of Goa in particular

and the country in general.

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PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA ANNEXURE


Annexure

ZUARI AGRO CHEMICALS LTD. EXPANSION OF FERTILIZER PRODUCTION UNITS AT ZUARINAGAR, SOUTH GOA, GOA ANNEXURE


Annexure 1: General Location, Specification location & Project Boundary



Project Boundary of Existing Site area



Proposed Project within Existing Project Site



Annexure 2: Project Site Layout



Annexure 3: IMD station Climatic data

Kadam Environmental Consultants w w w . ka d a m en v i r o . c o m

Envi ronment for Deve lopment

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