Site selection & Plant layout

SITE SELECTION
RAW MATERIAL AVAILABILITY
MARKET ANALYSIS
ENERGY AVAILABILITY
METEOROLOGICAL DATA
TRANSPORT FACILITY
WATER SUPPLY
WASTE DISPOSAL
LABOUR SUPPLY
TAX BENEFITS
SPECIAL ECONOMIC ZONE BENEFITS
SITE CHARACTERISTICS
SAFETY AND ENVIRONMENTAL MEASURES
COMMUNITY FACTORS

8.2 PLANT LAYOUT

ABSTRACT
Based on raw material availability, location for the plant is decided. Further on the basis of market
analysis Hazira, Gujarat is preferred for plant location. A multitude of analysis is carried out on the
basis of above mentioned factors and hence, it is finalized as plant location.
Plant layout has also been shown in this chapter.
SITE SELECTION AND PLANT LAYOUT
Before any detailed work is done on the design, the technical and economic factors of the proposed
process should be examined. The various reactions and physical processes involved must be
considered, along with the existing and potential market conditions for the particular product. A
preliminary survey of this type gives an indication of the probable success of the project and also
shows what additional information is necessary to make a complete evaluation. Various factors are
required to be considered while deciding the location of the plant; based on those factors the final
locations must be judged. Considerable care must be exercised in selecting the plant site and many
other different factors should be considered. Primarily, the plant should be selected where the
minimum cost of production and maximum product distribution can be obtained. Also, other factors,
such as room for expansion and safe living conditions for plant operation as well as surrounding
environment, are also important. A firm general consensus as to the plant location should be obtained
before a design project reaches the detailed estimate stage, and a firm location must be established
upon completion of the detailed-estimate design of the place. Following is a list of items that should
be considered for site selection:
1. Designation of site as heavy industrial development area
2. Other similar chemical plants existing in the area
3. Presence of infrastructure, such as roads, and services such as electricity, gas, water, etc.
4. Appropriate drainage, terrain, sub-surface, etc.
5. Suitable access for transportation of raw materials and chemicals, and for the construction

6. Proximity to major transportation networks

7. Availability of local workforce. Distance of plant from local communities.
8. Availability of domestic water and plant cooing water.
9. Environmental discharge regulations.
10. Proximity to raw materials supply and market for product chemical
11. Existence of services equipped to deal with a major industrial accident
12. Meteorological data
13. Proposed or possible government restrictions regarding industrial development or discharge
emissions

14. Space for expansion

15. Price of land
16. Public opinion
17. Possibility of earthquakes, subsidence, avalanches, etc.
18. Availability of government regional development grants or tax incentives, subsidies, etc.

Preliminary Study - On the basis of raw materials availability, market survey, energy supply, and
climate, acceptable locations can usually be reduced to one or two general geographical regions.

Secondary Study The effects of transportation facilities and water supply are taken into
account to reduce the possible plant locations to few general target areas.

Tertiary Study - The availability of land at the selected site is examined and also a detailed
analysis of the remaining sites is made. On the basis of prevailing freight rates, labor conditions,
tax rates, price of land and general local conditions various sites are inspected and appraised
influencing the final decision. The choice of the final site is based on a detailed survey of various
geographical areas, and ultimately, on the advantages and disadvantages of available real estate.

RAW MATERIAL AVAILABILITY

An initial outline regarding the plant location should be obtained before a design project reaches
the detailed estimate stage, and a firm location should be established upon completion of the
detailed estimate design. The factors that must be evaluated in a plant location study indicate the
need for a vast amount of information.
The source of raw materials is one of the most important factors influencing the selection of a
plant site. This is particularly true if large number of raw materials source permits considerable
reduction in transport and storage charges. Attention should be given to the purchased price of
the raw materials, distance from the source of the supply, freight or transportation expenses,
availability and reliability of supply, purity of the raw materials, and storage requirements.
The raw material for our industry is Secondary Butyl Alcohol. Given below is a map of India
detailing the location of various ports and plants which are the potential raw material providers
for our plant. This analysis helped us to narrow down the area of plant location to a few sites.

//MAP

Very few industries produce SBA and most of it is imported from Brazil.Brazil is the
leading producer of SBA.

ENERGY AVAILABILITY

Power and steam requirements are high in most of the chemical plants, and fuel is ordinarily
required to supply these utilities. Power and fuel can be combined as one major factor in the
choice of a plant site. If the plant requires large quantities of coal or oil, location near a source of
fuel supply may be essential for economic operation. The local cost of power can help determine
whether power should be purchased or self-generated. Essar Power, NTPC, Shell and Gujarat
State Petroleum Corporation are sufficient to fulfill the requirements of the plant.

8.1.4 METEOROLOGICAL DATA

If the plant is located in a cold climate, costs may be increased by the necessity for construction
of protective shelters around the process equipment, and special cooling towers or air-
conditioning equipment may be required if the prevailing temperatures are high. Excessive
humidity or extremes of hot or cold weather can have serious effect on the economic operation of
the plant, and these factors should be examined when selecting a site. Temperature range
between 18 C to 40 C.
8.1.5 TRANSPORT FACILITIES

Water, railroads and highways are common means of transportation used by major industrial
concerns. The kind and quantity of products and raw materials determine the most suitable type
of transportation facilities. Careful attention should be given to local freight rates and existing
railroad lines. The proximity to railroad centers and the possibility of canal, river, lake or ocean
transport must be considered. Motor trucking facilities are widely used and can serve as a useful
supplement to rail and water facilities. If possible, the plant site should have access to all three
types of transportation and, certainly, at least two types should be available. There is usually a
need for convenient air and rail transportation facilities between the plant and the company
headquarters, and effective transportation facilities for the plant personnel are necessary.
The transport of material to and from the plant will be significant cost to us, hence it should be
located at places well connected by roads, railways and waterways. Gujarat emerges the states
with both the raw material supply and connected with the world and inside the country with a
good mode of transport. Analyzed market scenario strongly suggests the Gujarat to be a state
where the industry has to be set up.
Hazira is a town and a transshipment port in the Surat district in Gujarat state in western India. It
is one of the major ports of India and one the most important element of Surat Metropolitan
region. It is known as the industrial hub of India. The town is located on the bank of the Tapti
River, eight kilometres from the Arabian Sea. It is a centre for health tourism due to its natural
springs, and a base for major industrial and shipping facilities like Essar, Kribhco, Shell, Larsen
& Toubro, NTPC, ONGC, GAIL, Gujarat State Petroleum Corporation, UltraTech
Cement and Reliance Industries. Hazira is situated at a distance of 25 km from Surat and
approximately 300 km from Mumbai. Hazira is well connected with National highways which
provoide great oppurtunity for the plant to market Methyl Ethyl Ketone products farthest parts of
India.

//Gujarat Road map

//Gujarat Port map

WATER SUPPLY
The process industries use large quantities of water for cooling, washing, steam generation and
as a raw material in process. Hence, the plant must be located where a dependable supply of
water is available. A large river or lake is preferable, although deep wells or artesian wells may
be satisfactory if the amount of water required is not too great. The level of the existing water
table can be checked by consulting the state geological survey and information on the constancy
of the water table and the year round capacity of local rivers or lakes should be obtained. If the
water supply shows seasonal fluctuations, it may be desirable to construct a reservoir or to drill
several standby wells. The temperature, mineral content, silt or sand content, bacteriological
content, and cost for supply and purification must also be considered when choosing the water
supply.
WASTE DISPOSAL
In recent years, many legal restrictions have been placed on the methods for disposing of waste
materials from the process industries. The site selected for a plant should have adequate capacity
and facilities for correct waste disposal. In choosing a plant site, the permissible tolerance levels
for various methods of waste disposal should be considered carefully, and attention should be
given to potential requirements for additional waste-treatment facilities.

LABOR SUPPLY
The type and supply of labor available in the vicinity of a proposed plant site must be examined.
Consideration should be given to prevailing pay scales, restrictions on number of hours worked
per week, competing industries that can cause dissatisfaction or high turnover rates among the
workers, and variations in the skill and productivity of the workers.
The site selected for the plant setup has:
Renowned academic and research institutions, like IIM, NIT etc in Gujarat a large pool of skilled
workforce.
Industrial Training Institute (ITIs) in Jamnagar, trains employees at shop-floor level.

TAXATION AND LEGAL RESTRICTIONS

State and local tax rates on property income, unemployment insurance and similar items vary
from one location to another. Similarly, local regulations on zoning, building codes, nuisance
aspects, and transportation facilities can have a major influence on the final choice of a plant site.
In fact, zoning difficulties and obtaining the many required permits can often be much more
important in terms of cost and time delays than many of the factors discussed in the preceding
sections.

Tax Benefits:
The incentives and facilities offered to SEZs are: (detailed instructions available at:
http://www.sezindia.nic.in/index.asp).
Duty free import/domestic procurement of goods for development, operation and
maintenance of SEZ units.
100% Income Tax exemption on export income for SEZ units under Section 10AA of the
Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed
back export profit for next 5 years.
Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
External commercial borrowing by SEZ units upto US $ 500 million in a year without
any maturity restriction through recognized banking channels.
Exemption from Central Sales Tax.
Exemption from Service Tax.
Single window clearance for Central and State level approvals.
 Exemption from State sales tax and other levies as extended by the respective State
Governments.
SEZ ADVANTAGE:

For SEZ units:

Income tax incentives: 10 year corporate tax holiday on export profit, 100% for the initial five
years and 50% for the next five years.

Other benefits:
Exemption of electricity duty 10 Years.
Duty-free procurement of capital goods (including second hand capital goods), raw
materials and consumable spares from domestic markets.
Full freedom for sub-contracting.
Facility to realize and repatriate export proceeds within 12 months.
Facility to retain 100% foreign exchange receipts in the export earners foreign
currency account.
Indirect tax incentives (for both SEZ units & Developers):
Nil customs duty.
Nil excise duty.
Exemption from central sales tax.
Exemption from service tax.
Exemption from securities transaction tax.
Exemption from tax on sale of electricity for self-generated and purchased power.
Besides above, Gujarat has very Liberal labor policies for SEZ and also SEZ
Development committee monitors infrastructure development for each SEZ.

Economic scope of SEZ is:

The SEZ has the advantage of all types of transportation system such as roadways,
seaport, air, and railways so the special economic zone should have a good export
link with the other countries in the world.
The trend in the unorganized industries sector such as information technology,
jewellery and gem, toys, biotech, and leather is to come under one common roof in
order to have an access to the general infrastructure facilities.
The increasing demand for the integration of the industrial sectors in India.

The SEZ has the following Political and Strategic advantages:

a Policy Framework:

Such kind of promotional activity is a designated duty free enclave and treated as
foreign territory for trade operations, duties and tariffs. Units can be set up for
manufacturing, trading or service activity.
 Most of the times lucrative offers are given such as exemption from customs and
central excise duty on import of capital goods, raw materials, consumables, spares
etc.
Readymade infrastructure is provided.
Exemption from payment of central sales tax could also be given.
Such industrial zones could dispose of rejects, waste, scrap in domestic market on
payment of duties.

b Procedural Ease:

No routine examination of import and export cargo by customs/central excise authorities. Goods
can be brought to or removed from industrial zone premises on self-certification basis.
Performance of the units to be monitored by a Committee headed by the Development
Commissioner and consisting of Customs officials.

c Benefits available to developers:

Industrialization zone allows private individuals or firms to participate by way of

creating infrastructure in the zone.
The developer of infrastructure is allowed duty free (customs and central excise)
import/procurement of goods for its development, operations and maintenance.
Income Tax exemption for 10 years in first 15 years is allowed.
Full freedom in allocation of developed plots to approved units on purely commercial
basis.
Full authority to provide services like water, electricity, security, restaurants,
recreation etc., on commercial lines.
Facility to develop township within SEZ with residential areas, markets, play
grounds, clubs, recreation center etc.

d Infrastructure and other facilities offered:

Built up space of any size is readily available in the Standard Design Factory (SDF)
Complexes.
Backup power supply as standby arrangement.
Good quality power, water at reasonable rates.
Telephone, Fax facilities on out of turn basis.
Banks, Post Office, Courier, Travels, Xerox and other support services are available
within the zone premises.
Units exempted from payment of installation charges, local loop charges.
Certification of Softex forms, free of cost.
Video Conferencing facility at nominal cost.
SITE CHARACTERISTICS
The characteristics of the land at a proposed plant site should be examined carefully. The
topography of land and the soil structure must be considered, since either or both may have a
pronounced effect on construction costs. The cost of the land is important, as well as local
building costs and living conditions. Future changes may make it desirable or necessary to
expand the plant facilities. Therefore, even though no immediate expansion is planned, a new
plant should be constructed at a location where additional space is available.

Infrastructure
The SEZ is self-sufficient in terms of internal roads, power, water, desalination plant, drainage
system and modern effluent treatment plants under construction.

Availability of Land: Hazira has sufficient available land for the plant setup
with the required area and future expansion (150 acres) and township which
accounts for 10% of industrial area that is 80 acres. This land would be
taken in lease manufacturing units.

PLANT LAYOUT
Plant layout is concerned with the spatial arrangement of processing equipment, storage vessels, their
interconnecting pipe work, workplace and warehouse. This is an important aspect in the design of
chemical and process plants, since a good layout will ensure that the plant functions correctly, safely
and efficiently. It considers the design constraints arising from safety, environment, construction,
maintenance, and operation with an economical balance. Access to the plant and supply of
maintenance, construction and emergency services are all affected by the plant layout. Numerous
accidents, occupational diseases, explosions, and fires are preventable if suitable measures and code
of standards are taken into consideration right from the earliest planning, design, and the initial
project stage. The principal factors to be considered are:
1. New site development or addition to previously developed site
2. Type and quantity of products to be produced
3. Possible future expansion
4. Operational convenience and accessibility
5. Type of process and product control
6. Economic distribution of utilities and services
7. Type of building and building code requirements
8. Guidelines related to health and safety
9. Waste-disposable problems
10. Space available and space requirement
11. Auxiliary equipment
12. Roads and railroad
Costs The cost of construction can be minimised by adopting a layout that gives the shortest run of
connecting pipe between equipment, and the least amount of structural steel work. However, this will
not necessarily be the best arrangement for operation and maintenance.
Operation Equipment that needs to have frequent operator attention should be located convenient to
the control room. Valves, sample points, and instruments should be located at convenient positions
and heights. Sufficient working space and headroom must be provided to allow easy access to
equipment.
Safety Blast walls may be needed to isolate potentially hazardous equipment, and confine the effects
of an explosion. At least two escape routes for operators must be provided from each level in process
buildings.
Plant expansion Equipment should be located so that it can be conveniently tied in with any future
expansion of the process. Space should be left on pipe alleys for future needs, and service pipes over-
sized to allow for future requirements.
Process
Equipment should be laid out in a sequence to suit the process flow. Fluid requirement, for example
gravity flow systems, pump suction heads and Thermosyphon system, often dictate relative
elevations and provoke the need for structures. Limitations of pressure or temperature drop in
transfer line decide of furnace, reactor, etc.
Hazardous and Toxic areas
Equipment items considered a possible source of hazard should preferably be grouped and located
separately, if possible and economic. Example are: Finances, flare stacks, or other direct fired
equipment containing an open flame, rotating or mechanical equipment handling flammable or
volatile liquids which could easily leak or spill.
Control rooms
15 meters or more from equipment which in operation or drying maintenance can create a hazard (if
not practicable, pressurize). Ensure maximum cable run to any instrument is not more than 90
meters.
Buildings
Example offices, first-aid rooms, cafeterias, garages, fire station, warehouses, gas holders, and work-
shop a minimum of 30 meters from any hazard. Unpressurised substation and switch rooms
minimum of 15 meters from any hazard. Definition of dangerous areas and their safety requirements
shall be in accordance with the institute of petroleum safety codes, or where this is not recognized, to
the applicable national code(s), local bye-laws and fire office whose requirements may be more
stringent or specific than the above codes shall take precedence.
Economic considerations
Apart from process restrictions, position equipment for maximum economy of pipe-work and
supporting steel. As compact a layout as possible with all equipment at grade is the first objective
with standard clearances, construction and safety requirements. Minimum runs of alloy pipework and
large bore without the introduction of expensive expansion devices. Optimize use of supporting
structures in concrete or steel by duplicating their application to more than one item of equipment
and ensuring that access ways, platforms, etc., have more than one function. Space saving can be
achieved by locating equipment over the pipe rack. Pumps should in general be located with their
motors underneath the main pipe rack.
Access
Overall plant arrangement must be reviewed for constructions, operation, safety and maintenance.
Consider large items of equipment or towers for which special lifting gear will be required. Provide
adequate access to lift these into place. Large equipment positioned close to boundary limits may
require erection from outside. Check to ascertain whether sufficient space will be available at
construction phase. Operation and maintenance should be reviewed by the eventual operating
company. Give consideration to maintenance access to air fins, etc, above pipe racks. Consider
location of equipment requiring frequent attendance by operating personnel and relative position of
control room to obtain shortest and most direct for operators when on routine operation.
Safety
Provide: sufficient clear areas between critical or high temperature items of equipment. Clear routes
for operators with two or more escape ladders or exits at extremities. Clear routes for access by fire-
fighting equipment.
Do not allow: Areas classified as hazardous to overlap the plot limits or extend over railways where
open firebox engines are likely to be employed.
Site considerations
Ascertain soil loading considerations and site contours before fixing final layout. Considerable
variations occur in allowable soil loads throughout site areas. It may be advantageous to locate heavy
equipment in the best soil loading area. Use existing contours, so that the quality of earth movement
due to cut and fill may be substantially reduced by intelligent positioning of the equipment.
Insulation
Insulation may be applied to vessel supports or stanchions of structures for fire protection purposes,
thus decreasing free space for access, sitting of pipework, instruments or electrical equipment.
In particular, note thickness of insulation of very high temperature or low temperature piping, which
may considerably increase o/d of pipe to be routed. For low temperature insulation, additional
clearance must be provided around valves, instrumentation, etc consider additional weight of
insulation and reduced centres of supports necessary to support heavily insulated pipe.
Columns and drums (vertical/horizontal)
Columns are usually self-supporting without external structures. Circular or segmental platforms
with ladders are supported from the shell. Maximum allowable straight run of ladder before a break
platform should not exceed 9 meters. Factors influencing column elevation are provision of gravity
flow system and insulation of Thermosyphon reboilers. Depending on plant arrangement column
may have to be elevated to a height in excess of the normal requirements to allow for headrooms
clearance from low level piping off-takes.
Exchangers
Tubular exchangers usually have standard length tubes of 2.5, 4, 5, and 6 meters. Whenever possible
locate exchanger at grade to facilitate maintenance and tube withdrawal. Two or more shell forming
one unit will be stacked, or otherwise arranged as indicated on the exchanger specification sheet.
Exchangers on dissimilar service may be stacked never more than three high, except for fin tube
units. Horizontal clearance of at least 900 mm will be left between alternate exchangers, providing
sufficient space is left for maintenance and inspection access. Tube bundle removal distance will be
minimum tube length plus 900 mm. Minimum removal distance plus 600 mm will be left behind the
rear shell cover of floating head exchangers. Where rear shell cover is provided with a davit, allow
clearance for full swing of the head. Set overhead vapour exchangers or condensers so that underside
of exchanger tube is self-draining. Arrange outlets to a liquid hold pot or trap, so that fixed end is at
the channel end. Vertical exchangers should be set to allow lifting or lowering of tube bundle.
Consult vessel section as to feasibility of supporting vertical exchanger channel preferably pointing
towards access areas or roads. If exchanger is situated well within the plot, leave a free area and
approach for mobile lifting equipment.
Preferably air fin exchangers should be located in a separate row outside the main equipment row,
remote from the central pipeway. Consider location of air fin exchangers over the central pipeway if
plot space is very limited.
Pumps
Locate pumps close to the equipment from they take suction possibly under structures or with motor
ends under a pipe rack allowing an access aisle for mobile handling equipment. Suction lines are
generally larger than discharge lines, to avoid problems arising from low NPSH. End
suction, top discharge is preferable for pumps taking suction directly from tanks or vessels located at
grade. Pumps should be arranged in rows with centre line of discharges on a common line. Clearance
between pumps or pumps and piping shall be a minimum of 900 minimum.
Piping
All piping within a process area should usually be run above grade. Trenched piping to be avoided.
Pipe racks and supports to be of the simplest form. Pipe racks may contain two layers of pipework.
Avoid triple layer of pipeway except for very short runs. Run piping external to the process area at
grade on sleepers (300 mm high). (Piping at grade is cheaper but liable to interfere with access).
Locate large bore piping as close to stanchions as possible. Lines requiring a constant full (relief
headers) can be run on cantilevers from pipe rack stanchions or on vertical extensions to pipe track
stanchions.
Plant Layout Design of the plant is attached along with.