Concept Note on Capacity Enhancement by Setting up New 1650 Npk Plant at Fact, Kochi

CONCEPT NOTE ON CAPACITY ENHANCEMENT BY SETTING UP NEW 1650 NPK PLANT AT FACT, KOCHI.

SUBMITTED TO MINISTRY OF ENVIRONMENT AND FOREST AND CLIMATE CHANGE (MoEF & CC) GOVERNMENT OF INDIA

OCTOBER 2019

PREPARED BY

FACT ENGINEERING AND DESIGN ORGANISATION A Division of The Fertilisers And Chemicals Travancore Ltd., (A Government Of India Enterprise), Udyogamandal– 683501, Kochi, India CONCEPT NOTE ON SETTING-UP NEW 1650 MTPD NP PLANT PAGE 1 OF 7

1.0 INTRODUCTION:

The Fertilisers And Chemicals Travancore Limited (FACT) is one of leading fertiliser manufacturer in India. FACT is having two manufacturing divisions, FACT Udyogamandal Complex (FACT-UC) and FACT Cochin Division (FACT-CD) located at Kochi, Kerala State.

Main products of FACT and their installed capacities are a. Factamfos 20:20:0:13 -- 6,33,500 MT b. Ammonium Sulphate -- 2,25,000 MT c. Caprolactam -- 50,000 MT

FACT as part of its vision plan earlier proposed 1,000 MT NP plant for enhancing the capacity of complex fertiliser from 2,000 to 3,000 MTPD. The Ministry of Environment, Forest and Climate Change accorded environmental clearance to FACT for earlier proposal of 1,000 MTPD complex fertilizer plant along with 5,000 MT ammonia storage at FACT – CD vide F.No. J-11011/177/11-IA II (I) dated 4th February 2015.

FACT now intends to go for 1,650 MTPD NPK plant capable of producing complex fertiliser NP 20:20:0:13 by installing a new fertiliser plant in Cochin Division located at Ambalamedu in Ernakulam District, Kerala State, instead of earlier proposal of 1,000 MTPD, at the same location thereby enhancing the total production capacity to 3,650 MTPD of complex fertiliser.

FACT has assigned the Project Management Consultant (PMC) works to its own engineering division – The FACT Engineering and Design Organisation (FEDO).

2.0 EXISTING FACILITIES:

The brief description of existing facilities at FACT - CD is given below: a. 1 x 1,000 MTPD Sulphuric Acid Plant b. 1 x 360 MTPD Phosphoric Acid Plant c. 2 x 1,000 MTPD Complex fertiliser plant producing NP-20:20:0:13 based on conventional slurry granulation process d. Offsite Facilities & e. Material Handling Facility at Willingdon Island (WI), Cochin Port

FACT ENGINEERING AND DESIGN ORGANISATION A Division of The Fertilisers And Chemicals Travancore Ltd., (A Government Of India Enterprise), Udyogamandal– 683501, Kochi, India

CONCEPT NOTE ON SETTING-UP NEW 1650 MTPD NP PLANT PAGE 2 OF 7

The offsite facilities includes raw material unloading & storage, 5,000 MT ammonia storage, sulphuric acid & phosphoric acid storage, bulk storage, bagging plant with railway siding facility, water treatment plant and ETP.

The material handling facilities at Willington Island (WI) include storage and handling (i.e, ship unloading/loading) for rock phosphate, sulphur, phosphoric acid and sulphuric acid. And 1x10,000 MT ammonia storage and handling facility.

3.0 BACKGROUND OF PROJECT PROPOSAL:

The brief summary of the project proposal is given below:

FACT, as part of its vision plan has proposed to go for capacity enhancement of its complex fertiliser production at its Cochin Division (FACT - CD) located at Ambalamedu in Kochi, Kerala State, South India. Accordingly, FACT had proposed a new 1,000 MTPD NP plant adopting conventional slurry granulation process for producing only a single grade product i.e., NP-20:20:0:13. 1) Vision plan outlining projects was presented to FACT’s Board of Directors in its Meeting held on 26th June 2009 2) DPR for 1000 MTPD NP plant was prepared by FEDO and was approved in-principle by the Board in its 436th meeting dated 06th January 2011 3) FEDO then submitted the DPR to MoEF & CC (formerly MoEF) in February 2011 (TOR is enclosed as Annexure -1) 4) Public hearing was conducted in presence of district administration & KSPCB on 7th February 2013 5) Then presented to Expert Appraisal Committee (Industry) at New Delhi on 28th April 2014 6) Environmental Clearance (EC) was obtained on 4th February 2015 (EC is enclosed as Annexure - 2)

But, then due to financial constrains the project didn't take-off. Recently, in 2019 the Department of Fertilizers (DoF) has approved the land monetization proposal of FACT which will enable us to proceed with the implementation of vision plan. Considering the favourable financial condition and in order to realize higher turnover, FACT Management now intends to go for a new 1,650 MTPD NPK plant using latest pipe reactor technology enabling to produce NP-20:20:0:13.

Also in the original proposal, EC was obtained for an additional 5,000 MT ammonia storage tank. Now it is planned to enhance the ammonia storage tank capacity to 10,000 MT at the same location.

4.0 CONCEPT NOTE:

This concept note aims to give a brief outlook of the comparison of 1,000 MTPD NP plant using conventional slurry granulation process, for which the environmental clearance was obtained with the proposed 1,650 MTPD NPK plant based on pipe reactor technology at the same location. It describes the project objective, pipe reactor technologies, project facilities, manpower requirement, comparison of the pollution load, mode and stages of implementation of project.

5.0 PROJECT OBJECTIVE:

Capacity enhancement of complex fertilizer plant NP 20:20:0:13 from 2,000 MTPD to 3,650 MTPD instead of 3,000 MTPD compliance to the earlier environmental clearance by installing additional NPK plant which is capable of producing NP-20:20:0:13. premier product of FACT, traded under the name Factamfos.

The annual production envisaged from the new 1650 MTPD NPK plant with pipe reactor technology will be 5,11,500 MTPA of NP-20:20:0:13.

The 1,650 MTPD NPK plant with pipe reactor technology have the advantage of low recycle ratio around 3-4:1 against conventional process and thereby increase in production, low fuel requirement and achieving better pollution standards than conventional process.

Sustained operation of NPK production can be ensured with assured supply of outsourced inputs like ammonia, phosphoric acid, sulphuric acid and sustained operation of existing ammonia plant at FACT-UC, sulphuric acid plant and phosphoric acid plant of FACT-CD.

6.0 TECHNOLOGY PROVIDERS/PROCESS LICENSORS

The following process licensors have technology for pipe reactor. 1) Incro SA, Spain 2) Espindesa, Spain 3) La Grande Paroisse, France

4) thyssenkurrup Industrial Solutions. 5) Stamicarbon, Netherlands 6) Incitec, Australia

The above mentioned process licensors offer different pipe reactor configurations and in the below table these licensors are brought under three categories based on the process and pipe reactor configuration offered worldwide:

PROCESS TECHNOLOGY PROVIDERS

System with pipe reactor in granulator only M/s. Stamicarbon (without pre- neutralizer). M/s. spindesa M/s. Incitec

System with two pipe reactors, one in granulator and one in dryer (without pre- M/s. La Grande Paroisse neutralizer).

Mixed system consisting of both pre- M/s. La Grande Paroisse. neutralizer and pipe reactor installed either M/s. thyssenkrupp Industrial Solutions in granulator or in dryer. M/s. Incro

7.0 PROJECT COST AND FACILTIES

The Capital investment for this brownfield project, NPK plant with pipe reactor technology and the ammonia storage of 10,000 MT (Battery Limit) at FACT Cochin division is estimated to be approximately Rs. 480 crores. The capital cost required for the proposal shall be meet from the revenue obtained from land monetization. The time schedule for the completion of the project is 24 months.

Being the brownfield Project existing facilities available at the unit shall serve the allied facilities required for the project.

8.0 SITE SELECTION:

FACT-Cochin Division located at Ambalamedu, Puthencruz Village of Ernakulum District in India about 120 acres of land available for expansion project in CD-Phase II plants. Suitable locations are identified, scrutinized in detail and a final recommendation is arrived for locating the plant envisaged under the Cochin Phase-II for earlier proposed 1,000 MTPD NP plant. For the proposed new 1,650 MTPD NPK plant the same location is recommended in consideration of the proximity to the existing plants in Phase-II area. The complex fertilizer plant requires around 4000 sq.m area.

The proposed location envisaged for the new project is east of existing bulk storage, considering the handling facilities for raw material /intermediate chemicals and product. An artificial reservoir with an earthen dam has been built to meet the water requirements of plants and township. The reservoir is supplied with water from the Periyar Valley Irrigation Project. This reservoir can meet the water requirement of the proposed plant.

The ammonia requirement for production of complex fertilizers is envisaged though imports and for this a 10,000 MT capacity ammonia storage was established at Cochin Port from where ammonia is transported and stored in a site storage of 5,000 MT capacity for eventual consumption in the complex fertilizer plant. The location east to the existing 5,000 MT is envisaged for the proposed ammonia storage of 10,000 MT at the same site.

9.0 MANPOWER:

It is generally proposed to use the existing manpower available in FACT to implement the project. However, services of specialists and engineers will be availed on contract basis based on the need from time to time.

When the plants go on stream the total manpower required at the work centre of the project is around 45. This does not include the personnel required for indirect services like medical, security, fire fighting etc. It is expected that these services for the proposed project can be met from the existing available personnel. It is contemplated to have the bagging operations on contract basis.

10.0 POLLUTION CONTROL MEASURES:

Liquid Effluents: No additional liquid effluents are expected from the proposed new 1,650 MTPD NPK plant. However effluent generated if any due to system upset can be let out to the existing effluent treatment facilities. Gaseous Effluents: Gaseous effluents shall comply with latest Central Pollution Control Board (CPCB) Environment (Protection) Second Amendment Rules, 2017 (G.S.R 1607 (E)) as given in the below table:

Pollutants CPCB Norms G.S.R 1607(E) Pipe Reactor Technology

Ammonia <150 mg/Nm3 ≤75 mg/Nm3

Particulate Matter <100 mg/Nm3 ≤75 mg/Nm3

Fluorine <10 mg/Nm3 ≤10 mg/Nm3

11.0 MODE OF IMPLEMENTATION OF THE PROJECT

The project shall be implemented on EPC (LSTK) contract basis among the licensed contractors for both 1,650 MTPD NPK plant and 10,000 MT ammonia storage.

12.0 STAGES OF PROJECT IMPLEMENTATION

Following are the broad stages of setting up of a Brownfield Project: 1) Environment Clearance from Ministry of Environment Forest & Climate Change (MoEF&CC). 2) Expression of Interest (EOI) from the process licensors/contractors. 3) Technology Evaluation and Selection or EPC (LSTK) Bid Preparation & Evaluation. 4) Finalization of EPCM or EPC (LSTK) Contractor 5) Award of Job to EPCM or EPC Contractor 6) Raw Material and Utilities Tie-Up for the Project 7) Commissioning of Project & Start of Commercial Production

13.0 CONCLUSION:

Implementation of this project will have the following advantages:

1) Availability of additional 5.1 Lakh Tonnes of NPK instead of 3.2 Lakh Tonnes of NPK in the South India. 2) Achieving better pollution norms 3) Reduce the import dependence of GoI & the subsidy outgo 4) Provides direct employment to 45-50 nos. and indirect employment to approximately more than 200 nos.

FACT ENGINEERING AND DESIGN ORGANISATION A Division of The Fertilisers And Chemicals Travancore Ltd., (A Government Of India Enterprise), Udyogamandal– 683501, Kochi, India Annexure-1 EIA for Capacity Enhancement of Complex Fertiliser Production Unit, FACT, Cochin

TORs approved by MoEF F. No. J-11011/177/11- IA II (I) Government of India Ministry of Environment and Forests (I.A. Division) Paryavaran Bhawan CGO Complex, Lodhi Road New Delhi – 110 003

E-mail : [email protected] Telefax : 011: 2436 7668 Dated 8th June, 2011 To, Shri K.V. Sukumaran, General Manager M/s The Fertilisers and Chemicals Travancore (FACT) Limited Cochin Division, P.O. Ambalamedu Cochin - 682 303, Kerala.

E-mail:[email protected] / [email protected]/ [email protected] ; Fax No. : 91-40-23412957

Subject: Fertiliser Capacity Enhancement (2000 to 3000 TPD) at Ambalamedu, Cochin, Kerala by M/s The Fertilisers and Chemicals Travancore Ltd. - TORs reg. Ref. : Your letter no. GM-CO-2470 & 088 dated 5th January, 2011 and 1st April, 2011.

Sir, Kindly refer your letter no. GM-CO-2470 & 088 dated 59th January, 2011 and 1st April, 2011 alongwith project documents including Form-I, Pre-feasibility Report and draft ‘Term s of Reference’ as per the EIA Notification, 2006. It is noted that proposal is for the Fertiliser Capacity Enhancement (2000 to 3000 TPD) at Am balamedu, Cochin, Kerala by M/s The Fertilisers and Chemicals Travancore Ltd.

Draft Terms of Reference (TOR) have been discussed and finalized during the 22nd Expert Appraisal Committee (Industry-2) meeting held on 29th–30th April, 2011 for preparation of EIA/EMP. Following are the ‘TORs’:

1 Executive summary of the project 2 Justification of the project. 3 Promoters and their back ground. 4 Regulatory framework 5 A map indicating location of the project and distance from severely polluted area 6 Project location and plant layout. 7 Infrastructure facilities including power sources. 8 Total cost of the project alongwith total capital cost and recurring cost/annum for environmental pollution control measures. 9 Project site location alongwith site m ap of 10 km area and site details providing various industries, surface water bodies, forests etc.

Asian Consulting Engineers Pvt. Ltd. 1-8 EIA for Capacity Enhancement of Complex Fertiliser Production Unit, FACT, Cochin

10 Present land use based on satellite imagery for the study area of 10 km radius. 11 Location of National Park/Wild life sanctuary /Reserve Forest within 10 km radius of the project. 12 Details of the total land and break-up of the land use for green belt and other uses. 13 Environment clearance for the existing unit issued by the Ministry (reasons, if not obtained), Consent to Operate and Authorization accorded by the Kerala Pollution Control Board along with point-wise compliance report. 14 List of products along with the production capacities and list of solvents and its recovery plan. 15 Detailed list of raw m aterial required and source, m ode of storage and transportation. List of the items to be imported.

16 Source and procurem ent of H 2SO4, phosphoric acid and am monia and its transportation system. 17 Details of the existing Fertiliser plant. 18 Manufacturing process details along with the chemical reactions and process flow chart. 18. Action plan for the transportation of raw materials and products. 19. Data for the stack em issions, fugitive emissions; water requirement and water balance chart; wastewater generation, treated effluent quality , sulphur emission and disposal of solid/hazardous waste for the existing unit. 20. Ambient air quality monitoring and stack emission data for the relevant param eters including

PM10, PM 2.5, SO 2, NOx, CO, NH 3, HC (Methane and Non-m ethane) and VOCs for all the stacks for the existing Fertiliser plant. 21. Data for surface and ground water, treated effluent quality data, noise pollution and solid waste management for the existing plant should also be included. 22. Air pollution control measures proposed for the effective control of gaseous emissions within permissible limits. 23. Plant-wise air pollution control m easures proposed for the control of em issions from all the sources particularly uncontrolled NOx emission and method to control NOx. 24. Name of all the solvents to be used in the process and details of solvent recovery system. 25. Details of water and air pollution and its mitigation plan. 26. Action plan to control ambient air quality as per NAAQES Standards notified by the Ministry on 16th September, 2009. 27. An action plan to control and m onitor secondary fugitive em issions from all the sources as per the latest permissible limits issued by the Ministry vide G.S.R. 414(E) dated 30 th May, 2008. 28. Determ ination of atm ospheric inversion level at the project site and assessm ent of ground level concentration of pollutants from th e stack em ission based on site-specific meteorological features. Air quality modelling for proposed plant. 29. Details of water requirem ent for existi ng and proposed expansion. Water balance chart including water intake, effluent generated, r ecycled and reused and discharged is to be provided. 30. Action plan to reduce fresh water requirem ent. Methods adopted/to be adopted for the water conservation should be included. 31. ‘Permission’ for the drawl of existing and proposed water requirem ent from the Com petent authority. 32. Design details of the ETP and STP as well as ai r pollution control equipm ents (Bag filters/ wet scrubber etc.). Installation of Continuous TO C analyzer to holding tank before discharge of effluent. 33. Action plan for ‘Zero’ discharge of effluent as proposed should be included.

Asian Consulting Engineers Pvt. Ltd. 1-9 EIA for Capacity Enhancement of Complex Fertiliser Production Unit, FACT, Cochin

34. Ground water m onitoring minimum at 6 locati ons should be carried out. Geological features and Geo-hydrological status of the study area and ecological status (Terrestrial and Aquatic). 35. The details of solid and hazardous wastes generation, storage, utilization and disposal particularly related to the hazardous waste cal orific value of hazardous waste and detailed characteristic of the hazardous waste. 36. Management of Sulphur muck and its monitoring plan. 37. Gypsum management status indicating generation and utilization details. 38. Plan for the im plementation of the recom mendations made for the Fertiliser plants in the CREP guidelines must be prepared and included. 39. Details of captive land fill alongwith desi gn details as per CPCB guidelines. Location of secured land fill/TSDF. 40. Authorization/Membership for the disposal of solid/hazardous waste in TSDF. 41. An action plan to develop green belt in 33 % area 42. Action plan for rainwater harvesting m easures at plant site should be included to harvest rainwater from the roof tops and storm water drains to recharge the ground water. 43. Occupational health of the workers since beginning. 44. Risk assessment for storage fo r chemicals/solvents. Hazard analy sis including impact due to

NH3. 45. List of all the accidents, mishaps, near misses happened in the past. 46. Socio-economic development activities should be in place. 47. Detailed Environment m anagement Plan (EMP ) with specific reference to details of air pollution control sy stem, water & wastewater m anagement, m onitoring frequency , responsibility and time bound im plementation pl an for m itigation m easure should be provided. 48. EMP should include the concept of waste-m inimization, recycle / reuse / recover techniques, Energy conservation, and natural resource conservation. 49. A copy of environmental statement for last one year submitted to concerned Pollution Control Board. 50. Any litigation pending against the project and/or any direction/order passed by any Court of Law against the project, if so, details thereof. 51. Public hearing issues raised and com mitments made by the project proponent on the sam e should be included separately in EIA/EMP Report in the form of tabular chart with financial budget for complying with the commitments made. 52. A tabular chart with index for point wise compliance of above TORs. 53. Subm it Risk Assessm ent, Hazard Identifica tion and Measure to m itigate for large scale, Ammonia storage, ship unloading & transportation to site, ammonia tank. 54. List of near misses and mishaps in last 10 years. 55. What is the pH of the leachate.

The following general points should be noted:

i. All documents should be properly indexed, page numbered. ii. Period/date of data collection should be clearly indicated. iii. Authenticated English translation of all material provided in Regional languages. iv. The letter/application for EC should quote th e MOEF file No. and also attach a copy of the letter. v. The copy of the letter received from the Ministry should be also attached as an annexure to the final EIA-EMP Report.

Asian Consulting Engineers Pvt. Ltd. 1-10 EIA for Capacity Enhancement of Complex Fertiliser Production Unit, FACT, Cochin

vi. The final EIA-EMP report submitted to the Ministry must incorporate the issues in this letter. The index of the final EIA-EMP report m ust indicate the specific chapter and page no. of the EIA-EMP Report. vii. While preparing the EIA report, the instru ctions for the proponents and instructions for the consultants issued by MoEF vide O.M. No. J-11013/41/2006-IA.II (I) dated 4th August, 2009, which are available on the website of this Ministry should also be followed. viii. The consultants involved in the prepar ation of EIA/EMP report after accreditation with Quality Council of India (QCl)/National Accreditation Board of Education and Training (NABET) would need to include a certificate in this regard in the EIA/EMP reports prepared by them and data provided by ot her organization/Laboratories including their status of approvals etc. In this rega rd circular no. J-l1013/77/2004-IA II(I) dated 2nd December, 2009 posted on the Ministry’s website http://www.moef.nic.in may be referred.

These ‘TORs’ should be considered for the preparation of EIA/EMP report for the Fertiliser Capacity Enhancem ent (2000 to 3000 TPD) at Am balamedu, Cochin, Kerala in addition to all the relevant information as per the ‘General Structure of EIA’ given in Appendix III and IIIA in the EIA Notification, 2006. The EIA/EMP as per TORs shoul d be subm itted to the Chairm an, Kerala State Pollution Control Board for public consultation. The KSPCB shall conduct the public hearing/public consultation as per the provisions of EIA notification, 2006.

You are requested to kindly subm it the final EIA/EMP prepared as per TORs and incorporating all the issues raised during Public Hearing / Public Consultation to the Ministry for considering the proposal for environm ental clearance within 2 years as per the MoEF O.M. No. J- 11013/41/2006-IA.II (I) dated 22nd March, 2010.

The consultants involved in the preparation of EIA/EMP report after accreditation with Quality Council of India / National Accreditation Board of Education and Training (QCI/NABET) would need to include a certificate in this regard in the EIA/EMP reports prepared by them and data provided by other Organization(s)/Laboratories including their status of approvals etc. In this regard circular no. J-11013/77/2004-IA II(I) dated 2 nd December, 2009 available on the Ministry ’s website http://www.moef.nic.in may be referred.

(Dr. P.B. Rastogi) Director

Copy to: The Chairman, Kerala State Pollution C ontrol Board, P.O. Pottaom , Thiruvananthapuram – 695 004, Kerala

Asian Consulting Engineers Pvt. Ltd. 1-11 Annexure-2