PRE-FEASIBILITY R E P O R T GTG-HRSG PROJECT UNDER ENERGY REDUCTION SCHEME FOR ENVIRONMENTAL CLEARANCE TROMBAY UNIT

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1 PRE-FEASIBILITY R E P O R T ON GTG-HRSG PROJECT UNDER ENERGY REDUCTION SCHEME FOR ENVIRONMENTAL CLEARANCE (VIDE MOEF GUIDELINES NO. J-11013/41/2006-IA.II(I) DATED 30 TH DECEMBER 2010) AT TROMBAY UNIT OF RASHTRIYA CHEMICALS & FERTILIZER LIMITED Prepared By PROJECTS & DEVELOPMENT INDIA LIMITED (A Govt. of India Undertaking) PO: Sindri , Dist: Dhanbad (Jharkhand) QCI - NABET ACCREDITATION NO. 94 AS ON 11 TH JULY 2016 AUGUST 2016

2 CONTENTS CHAPTER DESCRIPTION Page No. 1.0 Executive Summary Introduction Proposed Scheme Project Description Planning Brief Environment & Safety Proposed Infrastructure Rehabilitation & Re-settlement Plan Project Schedule & Cost Estimates Project Economics Conclusion & Recommendation LIST OF TABLES Table Name of the Table Page No. 1 Steam Balance of RCF, Trombay 19 2 Power Balance of RCF, Trombay 20 LIST OF PLATES Plate No. Name of the Plate Page No. 1 Location of RCF Trombay Fertilizer Complex in Google Map 21 2 Topo-map of 10 Km radius around RCF Trombay 22 3A Block Diagram of GT - HRSG 23 3B Block Diagram of GT - HRSG 24 4 Layout plant of GTG-HRSG 25

3 1.0 EXECUTIVE SUMMARY 1.1 Rashtriya Chemicals & Fertilizers Limited (RCF) is one of the most revered Public Sector Undertaking (PSU) of the Ministry of Fertilizers of Government of India. GoI has accorded Mini Ratna Status to RCF. It was established in 1978 after reorganization of Fertilizer Corporation of India (FCI). RCF manufactures Urea and complex fertilizer (NPK) along with variety of industrial chemicals that are important for manufacture of dyes, leather, pharmaceutical intermediates etc. It is one of the largest manufacturing units in India. RCF, Trombay is commonly known as fertilizer process and chemical factory which is spread over an area of 765 acres including township. The company has acquired various accreditations like ISO 14001, OHSAS 18001, ISO 9001, ISO 50001, PSM, Protect & Sustain Protocol of Product Stewardship etc. During identification of critically polluted industrial areas by CPCB in December 2009, the CEPI Index of Chembur Industrial Area has been calculated equivalent to (less than 70) and as such does not fall under critically polluted industrial zone. The individual pollution index for Air has been calculated equivalent 59.75, just below the critical limit of 60. Similarly, the pollution index for water has been calculated equivalent to and for land it is RCF manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100% water soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals. It produces 25 lakh MT Urea, 6 lakh MT Complex fertilizers and 1.6 lakh MT of Industrial Chemicals every year. The company is a household name in rural India with brands "Ujjwala" (urea) and "Suphala" (complex fertilizers) and has countrywide marketing network in all major states. Apart from the own manufactured products, the Company is also engaged in marketing of SSP and imported fertilizer inputs like, DAP, MOP & NPK fertilizers. Besides fertilizer products, RCF also produces almost twenty industrial chemicals that are important for the manufacture of dyes, solvents, leather, pharmaceuticals and a host of other industrial products. RCF always keep itself up-to-date by adopting the mantra renovate, modernize and upgrade. Wherever energy becomes part of the manufacturing facilities, one has to PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 1 OF 25

4 keep pace with the emerging technologies. RCF as a whole is committed to use the energy in the most efficient way. "Energy Conservation" is a major objective for RCF as such, and more so, for Trombay Unit. With a view to reduce energy consumption, RCF intends to install Gas Turbine Generator (GTG) and Heat Recovery Steam Generation (HRSG) at RCF, Trombay Unit. Total power requirement of RCF Trombay at present is 40.7 MW (approx.) and average steam requirement is about 184 MT/hr (approx.). The total power required is supplied by TATA power and steam required for the complex is generated in the existing gas fired boilers. RCF had appointed Projects & Development India Limited (PDIL) to conduct a Techno- Economic Feasibility Study for installation of GTG for power generation, HRSG for part steam generation and balance steam from gas fired boiler. The basic objective of the study was to find out the reduction in Energy Consumption of RCF Trombay Unit especially specific energy consumption of Ammonia-V and Urea plant and find out the possible economics of installing GTG at RCF, Trombay complex. To meet the objective of the study, PDIL has prepared the TEFR for installation of GT-HRSG and submitted the same to RCF. 1.2 Project Location RCF Trombay Unit is located in Chembur Industrial Area in Mumbai, Maharashtra. Geographically, Trombay unit is located at geo-coordinates of '10.579" North and '19.233" East at an altitude of about 6m from MSL. Eastern Express Highway is located at a distance of about 1 km from the unit. Chhatrapati Shivaji International Airport is located in north direction at a distance of about 6 km from Trombay Unit. 1.3 Scope of Study The basic objective of Pre-Feasibility Study is to reduce the Sp. energy consumption of Ammonia-V plant from 8.73 GCal/MT to about 8.40 GCal/MT and Sp. Energy consumption of Urea from 6.75 GCal/MT to about 6.45GCal/MT. In order to achieve the desired target, it is proposed to install 02 nos. of GTG of 32 MW ISO rating (2 32 MW) and 02 nos. of HRSG units of 65 MTPH capacity each (2x65 MTPH). PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 2 OF 25

5 1.4 Energy Saving There shall be no power import from TATA, which shall result in effective energy saving but increase in natural gas import. The overall energy saving is summarized below: Sl. No. Item Savings Energy Saving Natural Gas Steam Generation in NSGP 9212 Sm 3 /Hr 76.0 GCal/Hr GTG & HRSG Sm 3 /Hr GCal/Hr Power Power KWh/hr GCal/Hr Energy saving of overall Trombay complex shall be GCal/Hr. 1.5 Saving of Natural Resource After implementation of proposed energy saving scheme, there will be reduction in steam consumption compared to existing system. The lower the steam generation, more is the saving in water consumption. At the same time, due to changeover from steam turbine drive to motor driven generator, there shall be reduction in cooling water circulation to the extent reduction of steam going through condensing type steam turbine. The reduction in cooling water circulation will certainly decrease the make-up water requirement. The reduction in make-up water due to above is given below: Sl. No. Item (m 3 /hr) 1. Due to reduction in steam Due to reduction in CW Circulation Total reduction in make-up water(m 3 /hr) Total reduction in make-up water(m 3 /day) 1270 Hence, about 1270 m 3 of process water shall be saved per day after implementation of the proposed energy saving scheme. 1.6 Annual Savings The total annual savings, likely to be achieved after implementation of proposed changeover scheme, is expected to be around Rs crore. The net annual savings due to stoppage of external power has been worked to Rs crore and Rs crore for saving in Water. However, for natural gas, additional cost of Rs crore will be incurred. Besides above, RCF Trombay unit has to retain the PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 3 OF 25

6 power demand agreement with TATA Power for at least half of the total consumption. For that, it is envisaged that RCF has to pay around Rs 50 lakh per month to TATA Power. All above mentioned savings and costs are against total investment of Rs Crore. 1.7 Estimated Cost of Project The estimated cost for the facilities installed for the proposed changeover scheme has been worked out to Rs Crore. 1.8 Project Implementation Schedule The total time schedule for completion of project would be about 24 months after receipt of approval from concerned authorities & statutory body. 1.9 Need & Justification The need and justification of the proposed project is summarized as under: It will reduce overall energy consumption leading to a substantial reduction in pollution load. It will totally stop the dependency of RCF Trombay Unit over TATA Power with regard to power supply of about 40 MW. The 40 MW power from TATA will be available for national grid. It will reduce the consumption of natural resource like water which in turn will have positive impact on environment It will impose positive impact on the consumption pattern of electricity in nearby area It will reduce the subsidy burden of Government of India (GoI). It will maintain the profitability of RCF. It will maintain stability in indigenous / domestic market for Urea. It will check the import possibility of fertilizers to some extent and yield national savings There will be temporary employment generation during construction period. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 4 OF 25

7 1.10 Conclusion & Recommendation Conclusion The proposed project is limited only to installation of GT-HRSG to get self reliance to meet power requirement without any change in the production rate of final product Urea & Ammonia. The EIA notification of 14 th September 2006 related to the proposed project is silent on the accords of EC for modernisation without change in the rate of product/product mix. As per Clause 7 (II), the project requires a critical review and due diligence to fix the methodology of EIA study. Further, as per CPCB (report published in December, 2009), the proposed project area (Chembur Industrial Area) does not fall in critically polluted zone and have CEPI index of (< 70). Hence, it does not require validation of environmental report by RO, MoEF. However, the environmental report is being submitted in every six months to RO, MoEF Bhopal as per relevant notification and no adverse comment is received so far. Recommendation The proposed project fulfills the aims & objectives of EIA by reducing energy consumption, waste generation and exploitation of natural resources. The adoption of the proposed project is essential keeping in view the survival of industries and implementation of new techno-economical feasible process of production. Considering the status of environment around Chembur Industrial Area and results of financial study, it is strongly recommended that the proposed modifications may be implemented at the earliest in the interest of nation as well as RCF. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 5 OF 25

8 2.0 INTRODUCTION 2.1 RCF is one of the most revered Public Sector Undertaking (PSU) of the Ministry of Fertilizers of Government of India. It falls under Mini Ratna category of central public sector undertaking. It was established in 1978 after re-organization of Fertilizer Corporation of India (FCI). RCF manufactures Urea and complex fertilizer (NPK) along with variety of industrial chemicals that are important for manufacture of dyes, leather, pharmaceutical intermediates etc. It is one of the largest manufacturing units in India. RCF has two operating units, one at Trombay in Mumbai and the other at Thal, Raigad district, about 100 km from Mumbai. 2.2 RCF is one of the oldest units set up in the country with a vision of growth in fertilizer production for food security. It manufactures Urea, Complex Fertilizers, Bio-fertilizers, Micro-nutrients, 100 per cent water soluble fertilizers, soil conditioners and a wide range of Industrial Chemicals. It produces 25 lakhs MT Urea, 6 lakhs MT Complex fertilizers and 1.6 lakhs MT of Industrial Chemicals every year. The company is a household name in rural India with brands "Ujjwala" (urea) and "Suphala" (complex fertilizers) which carry high brand equity. RCF has countrywide marketing network in all major states. Apart from the own manufactured products, the Company is also engaged in marketing of SSP and imported fertilizer inputs like, DAP, MOP & NPK fertilizers. Besides fertilizer products, RCF also produces almost twenty industrial chemicals that are important for the manufacture of dyes, solvents, leather, pharmaceuticals and a host of other industrial products. 2.3 Chemicals essential for every industry from food and drugs to synthetic fibres, from textiles and cement to pesticides and paints; from explosives to specialty solvents and dye stock are produced by RCF. RCF also pioneered the manufacture of basic chemicals such a Methanol, Ammonia, Ammonium Nitrate Melt, Sodium Nitrate, Sodium Nitrite, Ammonium Bicarbonate, Methylamines and Argon in India. 2.4 RCF has always striven for upkeep of the plants through modernizing and upgrading technology. Various improvement schemes implemented by RCF have kept the company thriving for five decades. This has facilitated plants to sustain operations and meet technological challenges of improved efficiency, lower energy PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 6 OF 25

9 consumption and maintain environmental norms. It has also resulted in achieving the highest standards of safety and product quality. 2.5 Safety is paramount important factor of RCF work culture. Safe work culture is always practiced in RCF. Depending upon the job scope and sensitivity of job, Safety Work Permits (Class I and Class II) are issued for carrying out the job. Training of safety practices, use of PPE, rescue operations, fire-fighting methods are imparted not only to RCF personnel but also to the contractor personnel in various training sessions including refresher courses. RCF also has a disaster management plan in place in case of exigencies. 2.6 Since inception, RCF has successfully and safely operated two dozen chemical and fertilizer plants. The company has operated plants at Trombay for last fifty years and maintained the quality of environment. This itself has been a huge challenge and demonstrates company's commitment towards environment and concern about the neighbourhood. RCF has spent more than Rs. 400 crore over the years in pollution abatement and environment improvement schemes. This also includes massive drive for tree plantation under "Chembur Green" Project. Complete transparency is maintained by the Company in dissemination of environment related data and information through four dedicated continuous Ambient Air Monitoring Systems installed around the factory boundary and continuous online stack monitoring. Real time emission levels are displayed through an illuminated board placed at the entrance of the factory for public viewing. No wonder that the company is maintaining ISO accreditation for environment since fifteen years. Both the manufacturing units are accredited with ISO 9000 for quality and OHSAS for Occupational Health and Safety. RCF Trombay Unit has recently got certified for ISO 50001:2011 for Energy Management System, PSM, Protect & Sustain Protocol of Product Stewardship certification from International Fertilizer Association (IFA). 2.7 RCF also strongly believes in discharging its Corporate Social Responsibility diligently with an objective to benefit the needy and for general good of the society. A host of CSR activities are undertaken by the company which includes adoption of villages, providing drinking water, schooling facilities and scholarship, Mid-day meal, special coaching facilities to poor students to enable them get admission in PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 7 OF 25

10 IITs and NITs, Community Medical facility through Mobile Medical Vans, special measures for SC/ST and underprivileged, training to farmers etc. As a part of its social efforts, the company has adopted 63 villages in Maharashtra, Karnataka and Andhra Pradesh for overall development. 2.8 RCF believes in providing one stop shop to farmers by marketing its own products and procuring other products for farmers through imports or tie-ups with other manufacturers. Though the manufacturing plants are distributed in two locations within Maharashtra, RCF markets its products throughout the length and breadth of the country with its products reaching even the far off north-eastern states of India. 2.9 To promote balanced use of fertilizers for improving the farm productivity and also to help maintaining soil health, RCF has established 12 (twelve) static Soil Testing Laboratories (STL) in the country at strategic locations, namely Mumbai, Kolhapur, Nagpur, Ahmednagar, Hassan, Vijaywada, Chandikhole, Kolar, Suryapet, Raipur, Nanded and Satara, covering the soil testing activity in the districts around these STLs. In addition to the static STLs, the Company also operates 6 (six) Mobile Soil Testing Labs. This service is rendered free of cost to farmers. Since last 40 years, RCF has analysed more than 50 lakh soil samples RCF does what it commits. The commitment is translated in a written document the Memorandum of Understanding (MOU) with Government of India. The performance is evaluated independently by the Department of Public Enterprises. RCF has been consistently achieving best rating of "Excellent" for past several years. Having accredited with "Mini-Ratna" status by the Government of India, it is now poised to get "Navratna" status. RCF has maintained a good financial position RCF always keeps itself up-to-date by adopting the mantra renovate, modernize and upgrade. Keeping this in view, RCF proposes to install Gas Turbines (GT) at RCF, Trombay. Total power requirement is of 42 MW (approx.) and average steam requirement is of about 210 MT/hr (approx.). The total power requirement of the unit is presently met through TATA power and steam required to the complex is generated in the existing gas fired boilers. The basic purpose of installation of GTG is reduction of the Sp. Energy Consumption of RCF Trombay Unit and at the same time, getting self-sufficient in power production. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 8 OF 25

11 2.12 Projects & Development India Limited (PDIL), a premier consultancy engineering and NABET accredited EIA consultancy organization (Sl. No.94 as on ), have been retained as Consultant by RCF for preparation of Pre- Feasibility Report (PFR), online submission of Form-I and obtaining environmental clearance from MoEF&CC for installation of GTG and HRSG at RCF Trombay. 3.0 PROPOSED SCHEME / MODIFICATIONS To meet the steam and power requirement of RCF Trombay complex, steam is generated through NG fired boiler and power is imported from TATA Power. Though, on technical front, continuing the existing steam and power system do not have any problem but, on energy front, prima-facie it looks to have opportunity for improvement. It is felt that, modification in the existing system of steam and power may be beneficial in the long run. With a view to reduce the overall energy consumption of the complex, it is proposed that steam and power system have to be modified in such a way that both steam and power shall be adequate to run the main plants and auxiliaries un-interrupted. For the proposed modification, there is a change in the steam and power production. The existing arrangement of power import shall be discontinued and it is proposed to install GT of 2x32 MW ISO and HRSG of 2x65 MTPH capacities. However, in normal operation, steam shall be generated without additional firing in both HRSG. In each HRSG, there shall be independent De-aerator and BFW Pump-Motor set (1 working +1 stand-by).with the addition of GTG and HRSG, steam load to the service boiler shall be reduced to the extent of steam available from HRSGs. In the modification scheme, the steam requirement has been so balanced that minimum let down of steam shall be required. One existing boiler shall be kept in line to produce balance HP superheated steam. HRSG shall be provided with one common Cooling Tower and Cooling Water pumps (1working +1stand-by). The total power requirement of the complex will be met from the power generation in GTG. Finally the changes required for the modification are: GTG ( 2 32 MW) ISO Rating HRSG ( 2 65 TPH) Replacement of turbine for Benfield Solution Pump in Ammonia-V with new motor. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 9 OF 25

12 De-aerator (2 nos.) with HP BFW Pump motor set (2 x (1+1)) One PRDS system for 12 ata to 4.5 ata in Ammonia-V, Modification in Power Distribution System 3.1 Project Proponent RCF, the project proponent, is a leading fertilizer and chemical manufacturing company. It has two operating units, one at Trombay in Mumbai and the other at Thal, Raigad district, about 100 km from Mumbai. Government of India has accorded "Mini-Ratna" status to RCF. RCF is one of the oldest units set up in the country with a vision of growth in fertilizer production for food security. It produces 25 lakhs MT Urea, 6 lakhs MT Complex fertilizers and 1.6 lakhs MT of Industrial Chemicals every year. The company is a household name in rural India with brands "Ujjwala" (urea) and "Suphala" (complex fertilizers) which carry high brand equity. 4.0 PROJECT DESCRIPTION 4.1 Type of Project The proposed project is a modernization project without any change in production rate with an aim to reduce the energy consumption by adopting the modern proven, best available technology through installation of GTG-HRSG. The project fulfils aims and objective of environment by reduction in energy consumption and natural resources i.e., water. 4.2 The proposed project is an independent project and not interlinked with any other project. After implementation of proposed scheme, specific energy consumption of Ammonia-V plant shall reduce from 8.73 GCal/MT to about 8.40 GCal/MT. Thus, there will be energy saving of 0.33 GCal/MT in Ammonia Plant. The specific energy consumption of Urea shall reduce from 6.75 GCal/MT to about 6.45GCal/MT. Thus, there will be energy saving of 0.30 GCal/MT in Urea Plant. The overall energy saving of Trombay complex shall be GCal/Hr. The saving of natural resources like water has been estimated to be about 1270 m 3 /day. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 10 OF 25

13 4.3 Space Required for Location for Installation of Proposed Facilities The project is limited to installation of 02 nos. of GTG of capacity 32 MW (2x32 MW) ISO Rating and 02 nos. of HRSG of capacity 65 MTPH (2x65 MTPH). A number of locations were inspected within the existing complex and discussed for installation of the above facilities. Finally, Ammonia-I old compressor house area, which is presently redundant, looked to be adequate after combining the adjacent vacant area. For each GTG-HRSG system, tentative area requirement is 45 m x 30 m. After dismantling the redundant Ammonia-I old compressor house and, if required, relocation of some working pipelines, the area can be utilised for installation of GTG and HRSG. The location of the RCF Trombay Complex in Google Map has been presented in Plate - 1 and Topo-Map has been presented in Plate Geo-coordinates of the project RCF Trombay unit is located at latitude '10.579" North and at longitude '19.233" East at an altitude of about 5m from MSL Details of Site The choice for selection of alternate site is limited as the proposed GT-HRSG project shall be located near Ammonia-I old compressor house area, which is presently redundant. The project site is centrally located within the battery limit of the complex and the same has been shown in the layout plan (Plate-4) Size & Magnitude The project is limited to installation of 02 nos. of GTG of capacity 32 MW (2x32 MW) ISO Rating and 02 nos. of HRSG of capacity 65 MTPH (2x65 MTPH). The other modifications are as under: Replacement of turbine for Benfield Solution Pump in Ammonia-V with new motor. De-aerator (2 nos.) with HP BFW Pump motor set (2 x (1+1)) One PRDS system of 12 ata to 4.5 ata in Ammonia-V, Modification in Power Distribution System BFW pump machine in Ammonia-V plant is already having spare motors which can be taken in line. The steam turbine shall be kept as standby. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 11 OF 25

14 4.4 Resource Recycling / Reuse The proposed project does not envisage resource recycling and reuse. However, there will be reduction of about 1270 m 3 /day of water consumption. 4.5 Availability of Water, Energy & Power The project proposal does not envisage additional water requirement. After implementation of proposed scheme, there will reduction of about 1270 m 3 / day of water. Similarly, there will be reduction in energy consumption. After implementation of proposed scheme, there will be energy saving of 0.33 GCal/MT in Ammonia plant and 0.30 GCal/MT in Urea plant. The overall energy saving of Trombay complex shall be GCal/Hr equivalent to 2065 GCal/day. Energy saving in terms of NG consumption shall be equivalent to 0.25 MMSCMD (at 8250 KCal / Sm 3 LHV) 4.6 Quantity of Waste (Solid & Liquid) The project proposal is limited to installation of 02 nos. of GTG as well 2 nos. of HRSG. Due to reduction in water consumption, there will be substantial reduction of about 620 m 3 /day of wastewater. 4.7 Site Analysis The proposed facilities i.e., 02 nos. of GTG of 32 MW and 02 nos. of GTG of 65 MTPH shall be installed within plant premises of existing RCF Trombay fertilizer complex. For each GTG-HRSG system, tentative area requirement is 45 m x 30 m. Since, the project shall be implemented within existing plant premises, hence no change in existing land use pattern is envisaged. 4.8 Eco-sensitive Areas The project is limited to installation of GT & HRSG within the existing RCF premises without any change in production profile. There is no Wild Life Sanctuary, National Park and Reserved Forest within 10 km radius of the project area. 5.0 PLANNING BRIEF RCF is one of the earliest units set up in the country with a vision of growth in fertilizer production for food security. Trombay fertilizer complex is a wellestablished unit having a modern township with all modern amenities. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 12 OF 25

15 Since the proposed project is limited to installation of GT HRSG related facilities in the existing plant premises, minor planning limited to the proposed project is envisaged. 5.1 Population Projection The project proposal is limited to installation of GTG and HRSG. There would be minor influx of manpower during construction. However, it is envisaged that local workers of adjoining area shall be engaged during construction. The experts visiting during project execution period will be accommodated by RCF. Existing manpower will be utilised for operation and maintenance of proposed GTG-HRSG. As there will be neither influx of population nor there would be any fresh appointment, no population projection has been envisaged due to the proposed project. 5.2 Land Use Planning As the project proposal is limited to installation of GTG and HRSG within the existing plant premises, hence, additional land use planning is not envisaged. 5.3 Assessment of Infrastructure Demand The existing infrastructural facilities like buildings, roads, utilities, etc. available at RCF Trombay is adequate to meet the infrastructural demand. 5.4 Assessment of Amenities/ Facilities RCF Trombay is having all the required amenities and facilities. Safety, first aid, fire station, health centre, environmental, social, cultural requirements are periodically assessed and upgraded as per requirements. 6.0 ENVIRONMENT AND SAFETY Since inception, RCF has successfully and safely operated two dozen chemical & fertilizer plants for the past five decades at Trombay and maintained the quality of environment. This itself has been a huge challenge and demonstrates company's commitment towards environment and concern about the neighbourhood. RCF has spent more than Rs. 400 crore over the years in pollution abatement and environment improvement schemes. This includes massive drive for tree plantation under "Chembur Green" Project. Complete transparency is maintained by the company in dissemination of environment related data and information through PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 13 OF 25

16 online stack & effluent monitoring system and four dedicated continuous Ambient Air Monitoring Stations located around the boundary of the factory. Real time emission levels are displayed through an illuminated board placed at the entrance of the factory for public viewing. No wonder that the company is maintaining ISO accreditation for environment since fifteen years. Both the manufacturing units are accredited with ISO 9000 for quality and OHSAS for Occupational Health and Safety. RCF Trombay Unit has recently got certified for ISO 50001:2011 for Energy Management System, PSM, Protect & Sustain Protocol of Product Stewardship certification from International Fertilizer Association (IFA). 6.1 Status of Environment During identification of critically polluted industrial areas by CPCB in December 2009, the CEPI Index of Chembur Industrial area has been calculated equivalent (less than 70) and as such does not fall under critically polluted industrial zone. The individual pollution index for Air has been calculated equivalent just below the critical limit of 60. Similarly, the pollution index for water has been calculated equivalent to and for land it is The area falls in low to moderate pollution zone as specified by CPCB s calculation of exceedence factor for air quality (SO2, NOx, NH3, PM2.5) 6.2 Assessment of Impact due to proposed scheme It is envisaged that there would be no adverse impact on various component of environment due to proposed energy saving scheme Land Environment The proposed project is limited to changeover scheme from steam generation through existing 01 no. of boiler to GT - HRSG and power generation in place of importing electrical power from external sources (TATA) with minor modification in the existing Ammonia-V plant. Due to changeover scheme, no additional land is required and activity shall be confined to the existing plant area. No major levelling and grading activities are anticipated. Hence, due to proposed project, no change in land use pattern is envisaged. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 14 OF 25

17 The proposed changeover scheme will generate marginal construction waste like civil debris, metal scrap, lube oil etc. The solid waste generated due to construction/demolition activities with respect to civil debris will be used for filling low lying areas. Metal scraps and lube oil shall be stored at one place and sold to outside agencies. As such there will be no adverse impact on the land environment due to proposed scheme. During operation phase, nature and quantity of solid waste shall be reduced in comparison to the existing system which shall be handled, stored and disposed off as per existing rules Air Environment Sources of Air Pollution due to proposed changeover scheme: Construction Phase During construction phase, dust generation, if any, due to excavation work but for a limited period only. Dust generation will be controlled by water sprinkling. Operation Phase In the proposed modification, there is absolutely no change in production quantity and quality either in fertilizer or industrial chemicals. In ammonia production process, there are minor modifications in moving machineries. The steam driven turbines are being replaced with motor driven. In ammonia plants, the input steam is replaced with electrical power. Presently, steam is generated by direct firing of NG in SGP and further, this steam is used in the complex either for driving turbines and other miscellaneous process use. The electrical power requirement is met by importing from external source. After changeover, external power import shall be totally stopped and equivalent amount of power shall be generated through GTG and exhaust gas from GTG will be used for generating the high pressure steam. Due to use of GTG system, it is likely that with minor increase in NG consumption, it will be sufficient to generate both power and steam and discontinue the use of external power thereby saving the national energy. There will be 02 nos. of new stack for venting the flue gases from HRSGs. The major pollutant in the exhaust gas will be NOx but the same will be controlled by using dry low NOx burner to remain well within the applicable limits. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 15 OF 25

18 After implementation of the proposed project, it is envisaged to stop 01 no. of boiler which in turn will reduce the emission from existing flue gas stack Water Environment With the implementation of proposed scheme, water requirement for the plant shall also be reduced by an amount of about 1270 m 3 /day due to reduction of steam and cooling water circulation requirement. Hence, total quantity of effluent generation after implementation of changeover scheme shall be reduced by an amount of about 620 m 3 /day Noise environment After implementation of GTG - HRSG, one existing boiler shall be stopped which is one of the major sources of noise generation. It is worth to mention here that during the installation of GTGs, all necessary precautions shall be taken from design stage itself so that noise level inside the plant as well as to factory boundary remains well within the permissible limit. 7.0 PROPOSED INFRASTRUCTURE The existing infrastructure of RCF Trombay with respect to residential colony, green belt, social infrastructure, road facilities, supply of water, sewerage facilities, power requirement etc. are working efficiently. In view of the size and magnitude of proposed project, no additional infrastructure is envisaged. 8.0 REHABILITATION & RESETTLEMENT PLAN The proposed project shall be established within existing plant premises of RCF Trombay Fertilizer Complex. Hence, any planning with regard to rehabilitation & resettlement is not applicable. 9.0 PROJECT SCHEDULE & COST ESTIMATES 9.1 Project Schedule RCF shall implement the changeover scheme by entering into agreement with a reputed Indian engineering consultant, who has been actively involved in the implementation of similar type of projects. The total time schedule for completion of project, especially GTG and HRSG would be about 24 months from zero date after issuance of environmental clearance (EC). PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 16 OF 25

19 9.2 Project Cost The cost estimates for proposed project has been worked out to Rs Crores PROJECT ECONOMICS 10.1 Annual Savings The total annual savings, likely to be achieved after implementation of proposed changeover scheme, is expected to be around Rs crores. Considering external Rs 8.5/kWh and water Rs. 55/m 3, net annual savings has been worked to Rs crores against power and Rs crores against water. However, for NG, additional cost of Rs crores will be incurred. Besides above, RCF Trombay unit has to retain the power demand agreement with TATA Power to at least meet half of the total consumption. It is envisaged that RCF has to pay around Rs 50 lakhs per month to TATA Power. All above mentioned savings and costs are against total investment of Rs Crores Pay Back Period The additional capital investment will be paid back in about 2.26 years by annual cash accruals including depreciation at nominal rated capacity of operation Internal Rate of Return (IRR) The IRR is a discount rate at which the present worth of benefits and costs are equal. The IRR calculation takes into account 24 months of construction period and 15 years of operating period of the project. On the basis of above, the IRR of change over scheme is estimated to be 35.18% CONCLUSION & RECOMMENDATION 11.1 Conclusion The proposed project is limited only to installation of GT-HRSG to get self reliance to meet power requirement without any change in the production rate of final product Urea & Ammonia. The existing facilities have no technical problem in operation but on energy front, it is consuming more energy in terms of steam and imported power. After implementation of the proposed project, the total import of power (40.72 MW) shall be stopped. The proposed GTG-HRSG project is based on one of the best available PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 17 OF 25

20 technologies with high energy efficiency which will be able to cater to the demand of both steam (partly) & power of the RCF complex. Though NG & power consumption is slightly increasing (by 3688 Sm 3 /hr and MW respectively) after changeover but, in comparison to savings due to external power (@ Rs. 8.5 / KWh), its cost is insignificant. The implementation of proposed project shall significantly reduce the energy (by 2065 GCal/day) consumption of the entire complex. The EIA notification of 14 th September 2006 related to the proposed project is silent on the accords of EC for modernisation without change in the rate of product/product mix. As per Clause 7 (II), the project requires a critical review and due diligence to fix the methodology of EIA study. Further, as per CPCB (report published in December, 2009), the proposed project area (Chembur Industrial Area) does not fall in critically polluted zone and have CEPI index of (< 70). Hence, it does not require validation of environmental report by RO, MoEF. However, the environmental report is being submitted in every six months to RO, MoEF Bhopal as per relevant notification and no adverse comment is received so far. The impact of proposed changeover scheme on land, air, water, noise and socioeconomic environment has been found to be predominantly positive Recommendation The proposed project fulfills the aims & objectives of EIA by reducing energy consumption, waste generation and exploitation of natural resources. The adaption of the proposed project is essential keeping in view the survival of industries and implementation of new techno-economical feasible process of production. Considering the status of environment around Chembur Industrial Area and results of financial study, wherein IRR and pay back is attractive (2.26 years), it is strongly recommended that the proposed modifications may be implemented at the earliest in the interest of nation as well as RCF. PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 18 OF 25

21 Table-1 Steam Balance of RCF, Trombay Figures in MT/hr Items Existing After modification Sl. No. 1.0 HP Steam production at 100 ata & 500 deg C NSGP HRSG 0 75 Sub-Total (1.0) HP Steam consumption at 100 ata & 500 deg C Ammonia-V Plant PRDS (HP to MP) 2 0 To AGC PRDS (HP to LP) Sub-Total (2.0) MP Steam Production at 40 ata & 375 deg C From Methanol Plant 9 9 From MPNA From HPNA 8 8 PRDS (HP to MP) 2 0 Sub-Total (3.0) MP Steam consumption at 40 ata & 375 deg C Ammonia -I plant 4 4 PRDS (MP to LP) 5 3 PRDS (MP to 20 ata header to ANP) Sub-Total (4.0) LP Steam Production at 12 ata & 210 deg C PRDS (HP to LP) From AGC to LP PRDS (MP to LP) 5 3 From SAP Plan 9 9 Methanol 5 5 From HRSG 0 0 Sub-Total (5.0) LP Steam consumption at 12 ata & 210 deg C MPNA Plant 4 4 HPNA Plant 3 3 CNA Plant Methyl Amine 5 5 AN Plant SNNP Plant 2 2 ABC Plant Suphala 3 3 NSGP Ammonia-I Plant 2 2 Ammonia-V Plant Sub-Total (6.0) PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 19 OF 25

22 Table-2 Power Balance of RCF, Trombay Figures in kw Sl. No. Items Existing After modification A TATA Power at 22/11 kv 1.0 Ammonia-V Urea Plant ABC Plant ANP Plant RWTP MPNA NSGP ANP Granulation Plant Methanol Plant Methyl Amine Plant GTG/HRSG AGC - - B Sub-total (A) TATA Power at 11 kv 1.0 Ammonia-I HPNA Plant CNA Plant SAP Plant PAP Plant SNNP Plant Suphala Plant ETP/ STP Rapid Wall Plant PGR & Storage Bagging Plant & MH Sub-total (B) Total Power (A+B) PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 20 OF 25

23 Proposed GTG- HRSG Project Site, RCF Trombay Plate-1 Location of RCF Trombay in Google Map PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 21 OF 25

24 Plate-2 Topo-Map PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 22 OF 25

25 PLATE-3 (A) BLOCK DIAGRAM of GT-HRSG PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 23 OF 25

26 PLATE-3 (B) BLOCK DIAGRAM of GT-HRSG PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 24 OF 25

27 PLATE-4 Layout Plan of GT-HRSG PROJECTS & DEVELOPMENT INDIA LIMITED, SINDRI 25 OF 25