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

1
 INDEX

Chapter No. TITLE PAGE NO.

1 Executive Summary 3

2 Introduction of Project / Background 5

Information

3 Project Description 10

4 Site Analysis 25

5 Planning Brief 37

6 Proposed Infrastructure 32

7 Rehabilitation and Resettlement (R & R) 35

Plan

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
Annexure 3: Tentative Project Schedule

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 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

[Link]. 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. [Link]
b. [Link]
c. [Link]
d. [Link]

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 Project at a Glance

[Link]. 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  Phosphoric acid (100%): 400,000 MT/year

requirement  Ammonia liquid: 220,000 MT/year
 MOP: 480,000 MT/year

6 Raw Material Storage at Plant Site

Storage
 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  9.5 MW
Requirement

10 Water  Process water requirement : 1180KLD

Requirement  Drinking water: 20 KLD

11 Man Power  Total: 274

Requirement

12 Project Cost  Approx: Rs 1517 crores

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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 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

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 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

[Link] 95 TPH
[Link] 95 TPH
[Link] 65 TPH
[Link] 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 68.48 80.38 87.27 77.70 61.80 69.13

Fertilizers
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

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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

Figure 2: Layout Map of proposed infrastructure from port to proposed plant

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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 Annual Capacity (25 %

Capacity production of each (MT)
[Link] 95 TPH 334400
[Link] 95 TPH 334400
[Link] 65 TPH 228800
[Link] 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
Annexure 2. Different sections of the project are described in detail as below.

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 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 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.

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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

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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
 Overflow from recycle regulator conveyors

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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,

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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

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 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-

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 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.

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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.

5. PLANNING BRIEF

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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

2
 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-

2
 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
 Site Mobilization:

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 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)

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 • 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
 Transportation 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
33. Administrative Building
Sl. No. Description of UNIT/ Section

3
 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.
 Port: Krishnapatnam port at a distance of approx 15 km from the 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.

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 Annexure 1:
Location of the Plant Site on Toposheet
 79•56’0"E 79•57'20"E 79•58'40"E 80°0’0"E 80•1'20"E 80•2’40"E

79•56’0"E 79°57'20"E 79•58’40"E 80°0’0"E 80°1'20"E 80•2'40"E

Legend Project site Kilometers
 Annexure 2:
Plant Layout Map
1 2 3 8 9 10 11 )2 14 15 16 17 18 19 20 21 22 2J 24

1
0
A

21400

21300
GEOGRAPHICAL/PLANT NORTH

NO. OF
DES CRIPTION OF UNIT/SECTION
21200 UNIT
21 TRAIN A NPK PLANT — GRANULATION SECTION
22 TRAIN A NPK PLANT DRYING AND COOLING SECTION
44 x 62
23 TRAIN A NPK PLANT — RAW MATERIAL HANDLING
2N00 24 TRAIN A NPK PLANT — AIR DEHUMIDIFICATION
25 TRAIN B NPK PLANT — GRANULATION SECTION
26 TRAIN B NPK PLANT — DRYING AND COOLING SECTION
44 x 62
27 TRAIN B NPK PLANT RAW MATERIAL HANDLINC

21000 28 TRAIN B NPK PLANT — AIR DEHUMIDIFICATION

NPK PLANT RAW MATERIAL STORAGE A HANDLING
29 50 x 120
(COMMON FOR NPK TRAIN A / TRAIN B)
NPK PLANT BULK SIL0, SCREEN HOUSE AND PRODUCT HANDLING 50 x 138
30
(COMMON FOR NPK TRAIN A / TRAIN B)
20900
31 BACGING PLANT (COMMON FOR NPK TRAIN A / TRAIN B) 52 x 95
40 RAW WATER PRE—TREATMENT & PROCESS WATER UNIT 15 x 25
42 C00LIN6 TOWER AREA 12 x 20
20800 44
43 PLANT & INSTRUMENT AIR SYSTEM
AUXILIARY BOILER 2030x x2020
E 45 EMERGENCY DIESEL GENERATOR 10 x 15
E
46 FUEL OIL STORAGE 20 x 15
47 CHEMICAL STORAGE 10 x 20
20700 48 TREATED WATER, FIRE WATER STORAGE TANKS & DM WATER UNIT 65 x 25
51 AMMONIA STORAGE & REFRIGERATION SYSTEM 100 x 90
52 PHOSPHORIC ACID STORAGE 110 x 42
53 SULPHURIC ACID ST0RACE 110 x 42
20600 61 CENTRAL CONTROL ROOM & LABORATORY 50 x 20
F 62 OUTDOOR SWITCHYARD AND MAIN SUBSTATION 25 x 15 F
64 OAU SUBSTATION CUM MCC ROOM 35 x 15
66 NPK SUBSTATION CUM MCC ROOM (COMMON FOR TRAIN A / B) 45 x 15
20500 67 BA6GING PLANT— MCC ROOM (ON 1 ST FLOOR OF BAGCING PLANT) 40 x 15
68 EMPTY BAG STORAGE AREA (0N 1ST FLOOR OF BAGGING PLANT) 40 x 15
71 NEUTRALIZATION AND WASTE WATER PIT 38 x 35
83 EFFLUENT TREATMENT PLANT 30 x 30
84 WATER STORAGE RESERVOIR 150 x 35
20 400
101 SECURITY OFFICE RAW MATERIAL 8 x 10
1 02 ADMINISTRATIVE BUILDING 30 x 40
1 03 CAR PARKING 30 x 10
104 WEICH BRIDGE CABIN (FOR RAW MATERIAL) 1 2 x 10
20300 1 05 FIRE STATION 15 x 25
106 FIRST AID ROOM 20 x 10
107 CANTEEN 15 x 35
108 TRUCK PARKING (FOR RAW MATERIAL) 80 x 40
20200 109 WORK SHOP 35 x 75
110 WARE HOUSE 50 x 60
111 WEIGH BRID6E CABIN (FOR PRODUCT) 12 x 10
112 TRUCK PARKING (FOR PRODUCT) 80 x 40
20100

LEGENDS:-
20000 PIPE RACK
GREEN BELT AREA

19900

19800
NOTES:—
1) ALL COORDINATES AND ELEVATIONS ARE IN METERS
2) LOCATION OF ALL UNITS ARE UNDER HOLD AS WIND DATA IS NOT AVAILABLE.
19700
3) SIZE, SHAPE AND ORIENTATION OF UNITS ARE TENTATIVE.
4) LOCATION OF SOURCE OF WATER, POWER SUPPLY IS UNDER HOLD
5) THIS LAYOUT IS STILL UNDER DEVELOPMENT PHASE.
19600 6) CLEARING OF LAND BY REMOVAL OF EXISTING CULTIVATION/ EUCALYPTUS TREES
IN SITE AREA IS NOT IN CONSIDERED IN SCOPE OF TKIS INDIA. L
NECESSARY STATUTORY APPROVAL TO BE TAKEN BY KRIBHCO.

1950

ADVANCE
COPY

1 1
NPK COMPLEX
KRI BHCO

PROPOSED LAYOUT FOR

NPK CONPLEX
NEAR KRISHNAPATNAN PORT

S
):4000
1 2 3 8 9 )0 1) 12 IN 4 16 18 19 20 21 | 22 2J 24
 Annexure - 3:
Tentative Project Schedule
TENTATIVE PROJECT SCHEDULE
NPK Complex & associated port facilities

ThyssenKrupp Industrial Solutions (India)

Project : Feasibility study for NPK Complex & associated port facilities Major Work Remaining Work Milestone

Client : KRIBHCO - KRISHNAPATTANAM

Contract No. : 66-2611

MONTHS

Sr No Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

I II I II II I II II II II II II II II I II II I II II II II II II II II II II II II II II II II I II
I I I
I I I I I I I I I I I I I I I I I I I I I

A Milestones

1 EFFECTIVE DATE OF CONTRACT

2 KICK OF MEETING

3 SOIL INVESTIGATION

4 BASIC ENGINEERING ADEQUACY COMPLETION

5 90% DETAILED ENGINEERING COMPLETION

6 PLACE ORDER FOR LONG LEAD EQUIPMENT

7 MOBILISE PILING WORKS CONTRACTOR

8 MOBILISE CIVIL WORKS CONTRACTOR

9 MOBILISE MECHANICAL WORKS CONTRACTOR

10 MOBILISE ELECTRICAL / INSTRUMENT WORKS CONTRACTOR

11 MOBILISE PAINTING / INSULATION CONTRACTOR

12 MECHANICAL COMPLETION

13 PRE COMMISSIONING

B Engineering

1 BASIC ENGINEERING ADEQUACY CHECK

2 HAZOP & FREEZE IN BASIC ENGG

3 DETAILED ENGINEERING

a) ENQ SPECS FOR LONG LEAD / CRITICAL ITEMS

b) ENQ. SPECS FOR PACKAGE ITEMS

c) ENQ. SPECS FOR OTHER MAJOR ITEMS

d) ENQ. SPECS FOR MISC. ITEMS

e) PROCESS ENGG

f) PIPING ENGG

g) CIVIL ENGG.

h) STATIC / ROTARY

i) ELECTRICAL ENGG

j) INSTRUMENT ENGG

k) VENDOR DRAWING REVIEWS

C Procurement (ENQUIRY TO DELIVERY)

1 PROPRIETARY SUPPLY ITEMS / EQUIPMENT. (SUPPLIED BY LICENSOR)

2 LONG DELIVERYEQUIPMENT/ ITEMS

3 PACKAGES & UTILITY ITEMS

4 PIPES & FITTINGS

5 OTHER PIPING BULK MATERIALS

6 MAJOR ELECTRICAL & INSTRUMENTATION ITEMS ( TRANSFORMERS, SWITCH GEAR, MCC, PLC)

7 OTHER ELECTRICAL & INSTRUMENTATION ITEMS

D Construction

a CIVIL WORKS

1 PILING TENDER CONTRACT FINALIZATION & MOBILIZATION AT SITE

2 PILING WORKS
TENTATIVE PROJECT SCHEDULE
NPK Complex & associated port facilities

ThyssenKrupp Industrial Solutions (India)

Project : Feasibility study for NPK Complex & associated port facilities Major Work Remaining Work Milestone

Client : KRIBHCO - KRISHNAPATTANAM

Contract No. : 66-2611

MONTHS
1516
Sr No Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 17 18 19 20 21 22 23 24 25 26 27 28 29 30

IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I II I II I II I II I II I II I II I II I II I II I II I II I II I II

CIVIL WORKS CONTRACT FINALIZATION & MOBILIZATION AT SITE

PRECAST WORKS

CIVIL WORKS - PLANT (ISBL)

STRUCTURAL FABRICATION / ERECTION WORKS

MISC
b CIVIL WORKS
MECHANICAL & PIPING

CONTRACTOR FINALIZATION AND MOBILIZATION AT SITE

SITE FABRICATED PHOSPHORIC ACID STORAGE TANK PREFAB & ERECTION

PLANT EQUIPMENT ERECTION

PACKAGE EQUIPMENT ERECTION

PIPING FABRICATIONS
c ELECTRICAL & INSTRUMENTATION WORKS : TENDERING AND INSTALLATION

PIPING ERECTION

d INSULATION & PAINTING WORKS : TENDERING AND INSTALLATION

f MECHANICAL COMPLETION

E PRE-COMMISSIONING

F COMMISSIONING