28 Dec 2016 160300010GYGFUIJTAnnexure-Pre-feasibilityReportPFR

Feasibility report for EC of Ammonia/ Urea Project of HURL at Barauni, Begusarai (Bihar)
1.0 EXECUTIVE SUMMARY
Hindustan Fertilizer Corporation Limited (HFCL) operated four fertilizer units namely
Barauni (Bihar), Haldia and Durgapur (West Bengal) and Namrup (Assam). HFCL
Barauni Unit was commissioned in November 1976. The installed capacities of the main
plants were 600 MTPD Ammonia and 2×500 MTPD Urea.
In addition to the main plants, fertilizer complex at Barauni has self contained utility and
off-site facilities including township. During mid eighties, Government of India (GoI)
constituted various committees to look into the causes of poor performance with no
outcome and the plant was shut down from January 1999 due to unviable cost of
operation. GoI declared the closure of all the fertilizer manufacturing units of HFCL
including Barauni.
The Barauni unit of HFCL was defunct since its closure. Therefore, the unit and other
associated facilities were lying unutilized. There is presently no functional urea unit in
the Eastern part of the country except two small units at Namrup (Assam).
Due to closure of all fertilizer units, a large gap between demand and supply of Urea in
India was experienced both by consumers and Government. In 2007, Govt. decided to
review the decision for revival of fertilizer units in view of the availability of huge
infrastructure facilities at plant locations and increasing gap between demand and supply
of urea.
Earlier, in 2015, Government had approved revival of three units i.e. FCIL Gorakhpur,
Sindri and HFCL Barauni through ‘bidding route’. The Union Cabinet in its meeting on
July 13, 2016 approved the revival of these three fertilizers units. A new Joint Venture
Company (JVC) in the name of Hindustan Urvarak and Rasayan Limited (HURL) has
been formed by means of Special Purpose Vehicle (SPV) comprising of PSUs viz.
National Thermal Power Corporation (NTPC), Coal India Limited (CIL), Indian Oil
Corporation Limited (IOCL) and FCIL/HFCL, through ‘nomination route’.
Projects & Development India Limited, Sindri 1 of 36

In pursuance to the above objectives, PDIL was entrusted to prepare the techno-economic
feasibility report for the closed Barauni unit with proposed annual production capacity of
1.27 MMTPA Urea.
1.1 PROJECT LOCATION

The proposed fertilizer plant of HURL shall be located at Latitude 25024'45" N and
Longitude 86001'40" E in the existing premises of HFC, village- Bishunpur Chand,
Begusarai, Bihar. The proposed location is well connected by rail and road. Broad gauge
Railway Station (Barauni Jn.) is located at a distance of 5 km from the proposed site.
National Highway No. 31 passes adjacent to the proposed site. The nearest airport is at
Patna about 120 km from Barauni. Nearby major industries include IOCL’s refinery &
Barauni Thermal Power plant.
1.2 PROJECT AT A GLANCE

Main features of proposed Ammonia-Urea Fertilizer Project are as follows:
Table-1.1
Details of Main Facilities
S.No. Parameters : Description
1.0 Name of the Project : Ammonia-Urea Fertilizer Project
2.0 Project Proponent : Hindustan Urvarak and Rasayan
Limited (HURL)
3.0 Project Location : Barauni, Dist-Begusarai, Bihar
4.0 End Product : Urea
5.0 Plant Capacity (MTPD)
- Ammonia : 2200 MTPD
- Urea (Neem coated) : 3850 MTPD
6.0 Plant Stream Days : 330
7.0 Annual Production (MT) : 12,70,500
8.0 Man Power Requirement (Nos.) : 460
9.0 Project Time Schedule(Months) : 36
10.0 Mode of Implementation : EPCM
11.0 Requirement of Raw Material
& Utilities
Natural Gas : 90,910 Nm3/hr
Treated Water : 1100 m3/hr
12.0 Project Capital Cost (Rs. Crore) : 5847.10

1.3 Environmental Consideration

HURL Barauni does not fall in the list of critically polluted area identified by CPCB as
per Comprehensive Environmental Pollution Index (CEPI). The proposed plant shall be
established based on new generation technology and inbuilt pollution abatement devices.
All the required civic amenities like School, College, Hospitals etc. are available within
10 km radius of project site.
1.4 Engineering Consultant
1.4.1 Ammonia Plant
The most prominent ammonia process licensors are as follows:
o Haldor Topsoe (HTAS), Denmark
o Kellogg Brown & Root (KBR), USA
o Uhde, Germany
1.4.2 Urea Plant
The current global leading licensors of Urea technology are as follows:
- Stamicarbon, Netherlands
- Saipem, Italy
- Toyo Engineering Corporation (TEC), Japan
1.5 RAW MATERIAL AND UTILITIES
The requirement of raw material and utilities for the proposed project has been worked
out on the basis of rated capacity of the proposed Ammonia-Urea plants and are
summarized in Table- 1.2:
Table-1.2
Hourly Raw Material & Utility Requirement
Sl. No. Raw Material/Utilities Unit Requirement

1.0 Natural Gas (LHV 8653 kcal/Nm3) Nm3 90910
2.0 Treated Water m3 1100
3.0 Neem Oil kg 56.15
4.0 Power MW 25

1.6 PROJECT IMPLEMENTATION PLAN & TIME SCHEDULE

1.6.1 Project Implementation Plan
Barauni unit of HFCL is to be revived through nomination route. HURL will make his
own strategy for technology selection, appointment of engineering
consultants/contractors, identifying and selecting the project team, organisational
structure, funding arrangement for implementing the project. EPC (Engineering,
Procurement and Construction) mode of implementation has been considered.
1.6.2 Time Schedule

The expected implementation time is around 36 (33 months mechanical completion and 3
months commissioning) months after the zero date i.e. from the date of environmental
clearance.
1.7 Estimated Project Capital Cost
The capital cost of the proposed project is estimated at Rs. 5847.10 Crores.
1.8 FINANCIAL ANALYSIS OF PROJECT
There will be overall saving in specific energy consumption for Urea production and the
financial analysis is as under:
Table-1.3
Financial Analysis
Urea Plant Capacity MTPD 3850
Post-tax IRR (Project) % 13.72%
IRR (Equity) % 16.21%
Estimated Investment Rs. Crore 5847.10
Profit % 61.19
Cash-break-even point % 73.44%
Payback Years 6.13
1.9 NEED & JUSTIFICATION

The need and justification of the proposed project is summarized as under:
 It will bridge-up the overall demand - supply gap of Urea in the country especially in
the region.
 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
 It will generate employment opportunity for the people in the region.
 It will ease the availability of chemical fertilizers to farmers.
1.10 Conclusion
The proposal for ammonia/urea plant of HURL at Barauni in Begusarai district of Bihar
state can be seen as a corrective step towards reducing the growing supply gaps for
fertilizer urea in eastern zone and to minimize import dependency. Indirectly, by
producing the fertilizer within the consumption region, it will lessen the pressure on the
long distance transport network as well as the transport cost involved in long distance
movement between production units and the consumer points.
The proposed plant shall be implemented with new generation technology & in-built
pollution abatement devices with low specific energy consumption of 7.005 Gcal/Te for
ammonia and 4.904 Gcal/Te for Urea.

2.0 INTRODUCTION
2.1 Background
Hindustan Fertilizer Corporation Limited (HFCL) operated four fertilizer units namely
Barauni (Bihar), Haldia and Durgapur (West Bengal) and Namrup (Assam).
The ammonia-urea complex of HFCL located at Barauni in Begusarai district of Bihar

was one of the new generation fertilizer plant in that period based on classical
reformation technology from hydrocarbon feedstock. The complex comprised of
Naphtha based ammonia-urea plants with self contained utility and off-site facilities.
The plant declared commercial production in November 1976. The installed capacities
of the main plants were 600 MTPD ammonia and 2×500 MTPD urea.
The plant performance has never been in the line of expectations. The primary reason
was design deficiencies and poor quality of equipment supply. The other reasons were
lack of stability in operation, unstable external power supply, etc. Desired production
level of the plant, has never been achieved. Although many of the problems faced by the
plants were identified at that time, no meaningful remedial and revamping measures
were undertaken. HFCL, Barauni made huge losses due to continuous non-performance
of its ammonia-urea plant. These losses had their own cascading effect. The corporation
was declared sick and was referred to BIFR in 1992. The plant was shut down from
January 1999.
Decision was taken to close down the company in December 2002. Subsequently,
Barauni unit was closed down and all the employees, barring a few, were released under
Voluntary Separation Scheme.
2.2 Revival of Barauni Unit of HFCL

The Barauni unit of HFCL was lying defunct since its closure. Therefore, the unit and
other associated facilities were lying unutilized. There is presently no functional Urea
plant in the Eastern part of the country except two small units at Namrup (Assam).
Earlier in 2015, Government had approved revival of three units i.e. FCIL Gorakhpur,
Sindri & HFCL Barauni unit through ‘bidding route’. However, the bidding process
could not be carried forward due to receipt of only one application each against

‘Request for Qualifications’ (RFQs) for revival of Gorakhpur and Sindri units of FCIL.
The annual consumption of Urea in the country is approx. 320 LMT, out of which 245
LMT is produced indigenously and rest is imported. To enhance the production of Urea
indigenously, Govt. had earlier also approved the revival of Talcher (Odisha) &
Ramagundam (Telangana) units of FCIL by PSUs through ‘nomination route’.
The Union Cabinet in its meeting on July 13, 2016 approved the revival of three
fertilizers units i.e. FCIL Gorakhpur, Sindri & HFCL Barauni. A new Joint Venture
Company (JVC) in the name of Hindustan Urvarak and Rasayan Limited (HURL) has
been formed by means of Special Purpose Vehicle (SPV) comprising of PSUs like
National Thermal Power Corporation (NTPC), Coal India Limited (CIL), Indian Oil
Corporation Limited (IOCL) and FCIL/HFCL, through ‘nomination route’.
The setting up of new fertilizer unit at Barauni will bridge-up the growing demand of
Urea in Bihar, West Bengal and Jharkhand. It will also ease the pressure on railway and
road infrastructure due to long distance transportation of Urea from Western and
Central Regions and thereby savings in Govt. subsidy on freight. It will also accelerate
the economic development of the region. Apart from growth of regional economy, this
unit will create opportunities for direct and indirect employments.
2.3 Project Location

The proposed Ammonia-Urea project shall be located Latitude 25024'45" N and
Longitude 86001'40" E at an altitude of 45m from Mean Sea Level (MSL) in the
existing premises of HFC, village- Bishunpur Chand, Begusarai, Bihar. National
Highway, NH-31 passes nearby and Broad gauge Railway Station (Barauni Jn.) is
located at a distance of 5 km. Major industries adjacent to the proposed fertilizer plant
are IOCL refinery and Barauni Thermal Power plant. The nearest airport is located at
Patna about 120 km from Barauni. Location of project site in Google map and
Geographical map has been shown in Plate-1 & 2.
2.3.1 Connectivity
The project site is well connected by road and rail network and is located adjacent to
NH-31. Barauni Railway Station is located at the distance of 5 km (NW).

2.3.2 Site Characteristics

Site characteristic are given in Table 2.1.
Table 2.1
Site Characteristics
Sl. No. Particulars Details
1. Latitude 25024'45" N
2. Longitude 86001'40" E
3. Altitude 45 m above MSL
4. Topography Plain
5. Present land-use Industrial
6. Nearest highway NH-31
7. Nearest Railway station Barauni Junction, 5 Km
8. Nearest Airport Patna, 120 Km
9. Nearest Town / city Begusarai: 9 Km
10. Water body Papraur pond: 0.25 Km
Ganges River: 8.6 Km
11. Seismic Zone IV
2.3.3 Climate
Being part of the Gangetic plains of the Indian subcontinent, the district experiences
three climatic seasons - summer season from March to mid June, monsoon season from
mid June to October and winter season from November to February. The month of
February & March fall in the transitional season from winter to summer described as
Spring or “Basant”. Similarly the months of September & October falls in the
transitional season from the monsoon season to the winter season and described as
“Shishir”.
2.3.4 Soil
Soil of the district is generally alkaline and is most fertile soil suitable for cultivation of
rice, jute and sugarcane.
2.3.6 Infrastructure
The proposed project is within the premises of the HFCL Barauni unit. all the
infrastructural facilities need to be developed in the existing complex.
2.4 Facilities available at old & closed Barauni Fertilizer Complex
Land

The total land available under HFCL Barauni ownership is around 630 acres comprising
of
Factory area and Railway siding : 350 acres
Township : 280 acres
This land does not include the land of Barrow Pit which has been Transferred to Bihar
State Electricity Board after approval by the Cabinet.
Railway Siding
Existing railway siding is meant for coal, naphtha and bagged Urea transportation. Rails
are in place however deteriorated and may be used after refurbishing. For the proposed
project, coal and naphtha handling is not required. Moreover entire usable railway lines
has to be reinstalled after dismantling the existing tracks to suit the requirement of new
proposed Bagging Plant.
Availability of Raw Water
Raw water requirement for the plant and township was made available through ten
numbers of deep tube well. The condition of the pumps and tube well could not be
ascertained as they have not been in use since long time. For proposed project, new ten
nos. of tube wells have been envisaged to meet the water requirement and older may be
kept as stand-by after thorough refurbishment.
2.5 Proposed Project Facilities & Description

2.5.1 Project Facilities
The proposed project consists of new ammonia and urea plant of 2200 MTPD & 3850
MTPD capacity respectively and related offsite and utility facilities considering
utilization of the existing facilities to the maximum extent possible. The details of the
facilities of proposed Fertilizer Complex are given below in Table 2.2.
Table - 2.2
List of Facilities in the proposed Fertilizer Complex
SI.No. Facility Capacity

1.0 NG/LNG Receiving & Metering Corresponding to 2.2 MMSCMD
Natural Gas
2.0 Process Plants

SI.No. Facility Capacity

2.1 Ammonia Plant 2200 MTPD
2.2 Prilled Urea (Neem Coated) Plant 3850 MTPD
3.0. Offsite Facilities

3.1 Ammonia Storage (Atm.) (2x5000) MT & associated
facilities
3.2 Urea Storage & Handling Facilities
a] Silo 60000 MT
b] Empty Bag Storage 2.0 Million
c] Bagged Storage 1000 MT (on platform)
d] Bagging Plant (7+1) Slats of 60 MTPH each
3.3 ETP Provided
3.4 Waste water collection system Provided
3.5 Contaminated rain water /storm Provided
water storage
3.6 Process & utility interconnection Provided
4.0 Utility facilities
4.1 Raw water pipeline and pumping Corresponding to 1265 m3/hr
from source capacity
4.2 Raw water storage and pumping Corresponding to 1265 m3/hr
capacity
4.3 DM water system including (1+1) x100 m3/hr
storage and pumping
4.4 Condensate Polishing Unit (2+1) x250 m3/hr
4.5 Cooling Tower
a] Ammonia Plant & CPP (8+1) Cell of 3500 m3/hr each
b] Urea Plant (5+1) Cell of 3500 m3/hr each
4.6 Instrument & Plant Air System
a] Compressor (Centrifugal) (1+1)×3000 Nm3/hr
b] Drying Unit (1+1)×3000 Nm3/hr
c] Receiver Provided
4.7 Inert Gas System 600 Nm3/hr

4.8 Steam & Power Generation System

a] GTG 15 MW
b] STG 10 MW
c] Emergency D.G. Set 1 × 2000 kVA
d] HRSG 1 x 130 MTPH
4.9 Flare System Provided
5.0 Infrastructure Provided
5.1 Plant Buildings Provided
5.2 Non-plant Buildings Provided
5.3 Auxiliary & General Welfare Provided
Facilities
5.4 Fire Fighting facilities Provided
5.5 Township & related facilities Provided
5.6 Transport Facilities
a] Locomotive (1+1) of 1200 HP
b] Railway Siding and lead line Lead line available, Railway
siding renovated for new
provision.
c] Road Transport Provision made
5.7 Construction equipment Provided
2.6 DESCRIPTION OF PROJECT

2.6.1 Ammonia Plant
The Ammonia Plant will consist of single stream of 2200 MTPD capacity. The plant
will be designed to use NG/RLNG as feed and fuel. The modern high capacity plant has
the advantage of economy of scale as well as lower energy consumption thereby
resulting in lower production cost. The Ammonia Plant will be self-sufficient in steam.
Part of steam requirement for Urea Plant will be met from ammonia plant. The
remaining steam requirement to urea plant will be met from the steam generated in
HRSG of Gas Turbine (GT) driven captive power plant.

2.6.2 Urea Plant
The Urea plant will consist of single stream having nameplate capacity of 3850 MTPD
neem coated prilled urea plant with stripping process technology. High-pressure steam
imported from the Ammonia Plant will be used to drive the CO2 Compressor with
extraction arrangement for meeting the process requirements.
2.6.3 Ammonia Storage
The provision of two new 5000 MT atmospheric ammonia storage tank with all
associated facilities have been considered for the proposed Project.
2.6.4 Urea Storage, Handling and Bagging
The new urea silo of 60000 MT capacities has been envisaged keeping product
inventory of about 15 days. Provision of new automatic bagging plant has been
considered. For the proposed project, (7+1) bagging streams, each of 60 MTPH, have
been considered. Modern and automatic system has been conceived for bagging and
loading of product into railway wagons/trucks. The system broadly consists of lifting of
empty bags from the sack magazine, placement of empty bags on the bag holder,
stitching of filled bags and flattening of filled bags on subsequent flat belt conveyor,
loading of filled bags into rail wagons/trucks shall be completely automatic involving
very little manual labour.
2.6.5 Water Supply, Treatment and Distribution
Ten nos. of new deep tube wells have been envisaged for the proposed project to meet
the water requirement. Besides this, DM Water Plant (1+1) 100 m3/hr capacity catering
to the requirements of the DM Water to the Steam Generation and Process Units has
been considered.
Considering the minimum condensate recovery from the complex, condensate polishing
unit of capacity (2+1) 250 m3/hr has been considered.

2.6.6 Cooling Water System
The Cooling water system will cater to the cooling water requirements of all facilities of
the complex. The cooling water requirements of pumps, compressors etc. shall also be
met from cooling water system.
The cooling water system provides cooling water to all users and controls the chemical
composition of circulating cooling water to prevent corrosion, biological growth and
solid deposits in piping etc. Cooling water return from various units is to be routed to
the cooling tower.
2.6.7 Ammonia, CPP and OSBL Cooling Water System
This cooling water system will cater to the cooling water requirement of the following
main units:
 Ammonia Unit
 CPP
 Other Misc. facilities
The rated capacity of the system is 28000 m3/h. Cooling tower will have nine (8+1)
cells each of capacity 3500 m3/hr.
2.6.8 Urea Cooling Water System
The cooling water demand of Urea plant will be met from Urea Cooling Water System.
The rated capacity of the system is 17500 m3/h. Cooling tower will have six (5+1) cells
each of capacity 3500 m3/hr.
2.6.9 Steam & Power Generation System [Captive Power Plant (CPP)]
In order to have best optimized energy consumption for the complex, the CPP has been
integrated with Ammonia unit. The CPP will meet all the power requirements of
ammonia unit for normal as well as start-up/emergency operations. In addition, CPP
shall supply the required power and steam to rest of the facilities of the complex.

CPP is the central unit supplying steam (HP/ MP/ LP) and power to all process units,
utility systems & offsites. It consists of GTG/ HRSG, Deaerators and other auxiliaries.
i) Steam System
Steam is consumed in the complex at three levels, viz. High Pressure (HP) Steam,
Medium Pressure (MP) Steam, Low Pressure (LP) Steam. Steam is also generated at all
three levels within process units / facilities of complex either in process steam
generators or through steam turbines for process pump / compressor turbine drives.
Steam is used in the fertilizer complex mainly for the following purposes besides the
internal demand of CPP:
 Process use (Chemical reaction, stripping steam etc.)
 Steam drives for some of the compressors/pumps
 As heating medium for steam heated exchangers
 Steam tracing of lines
 De-aeration
 Intermittent requirement like decoking, purging etc.
Power System
Power is used in the complex for following main purposes, besides the internal power
demand of captive power plant (CPP):
 For driving motors to run various rotating machinery (pumps, compressors, blowers,
etc.)
 For meeting the power demand of instruments
 For operating electric heaters (like instrument air-dryer heater, electric tracing of
lines if specified, etc.)
 For plant lighting and other miscellaneous purposes, etc.
To meet the power requirement of proposed fertilizer complex, provision of NG based

Gas Turbo Generator (GTG) set (1) of 15 MW ISO rating capacity and Steam Turbine
Generator (STG) of 10 MW capacity has been kept to ensure uninterrupted power
supply to the plant. The exhaust gas from the gas turbine (GT) shall be utilised for

generating HP steam required in urea plant and STG. Further, emergency DG set of
2000 KVA has also been considered.
Provision shall be made for emergency power back-up from Bihar State Electricity
Board (BSEB).
2.6.10 Instrument Air Facilities
The normal instrument air requirement for the plant will be met from the Process Air
Compressor. However, as instrument air is very vital for process control instruments,
(1+1) Centrifugal Air Compressors each having a capacity of 3000 Nm3/hr along with
air dryer and receiver units have been provided for the Project. This arrangement will
add to the fail-safe system of instrument control.
2.6.10 Fire Fighting System
Fire-fighting system including firewater storage, pumps etc. shall be provided which
will be adequate to meet the requirement of proposed plant. Provision has been made
for firewater ring and other fire & safety equipment including fire tenders.
2.6.11 Effluent Treatment
Urea plant shall be provided with in-built deep Urea Hydrolyser System, which will
generate condensate for re-utilization in the plant itself. Ammonia plant shall be
provided with Condensate Stripper for stripping and re-use of ammonia. Disc. oil
separator shall be provided for removal of oil from oil bearing effluents generated in
various compressors system.
The occasional effluent generated during plant upset conditions shall be stored in
effluent delay pond from where it shall be discharged to treated effluent pond at
controlled rate after treatment.
2.6.12 Auxiliary & General Welfare Facilities
The following facilities have been considered under this head.
 Safety

 Smoke detection system
 Workshop Equipment
 Communication System
 NDT Equipment
 Laboratory Equipment incld. Lab Chemicals
 Weigh Bridges
 Public address system
 Computers & Software
 Pollution Monitoring System
 Furniture’s & Fittings (Plants & Township)
 Office, Canteen, First Aid etc.
 Hospital Equipments
2.6.13 Transport Facilities
Provision for (1+1) locomotives each of 1200 HP, two nos. of cars, two nos. of jeeps,
one ambulance and one bus, etc. shall be provided for the project. New railway siding
have been considered for the proposed Project. Development of parking area for truck
movement within the complex shall also be provided.
2.6.14 Construction Facilities
The following facilities have been considered:
 400 Te Crane (1 no.)

 75 Te Crane (1 no.)
 12.5 Te tyre mounted crane (1 no.)
 5 Te tyre mounted crane (2 nos.)
 Tractor with trailer (2 nos.)
 Fork Lift (4 nos.)
 Bull dozer (2 nos.)

 Fire Tenders (2 nos.)

 Tools and Tackles
 Hutments & Shelters
 Shed yards
 Fencing
2.6.15 Township and other facilities
As the Barauni unit is closed since more than 15 years, most of the facilities are not in
usable condition. Hence, a new township along with other facilities has been
considered.
2.7 Raw Material Consumption

The consumption of raw material of proposed project is as under:
Table-2.3
Hourly Raw Material & Utility Requirement
Sl. No. Raw Material/Utilities Unit Requirement
a) Natural Gas (LHV 8653 kcal/Nm3) Nm3 90910
b) Treated Water m3 1100
c) Neem Oil kg 56.15
2.8 Estimated Project Capital Cost

The Project Capital Cost of the proposed project 2200 MTPD ammonia and 3850
MTPD urea along with associated offsite & utility facilities is estimated at Rs. 584710
Lakh.
2.9 Need & Justification

The need and justification of the proposed project is summarized as under:

 It will bridge-up the overall demand - supply gap of Urea in the country especially in
the region.
 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
 It will generate employment opportunity for the people in the region.
 It will ease the availability of chemical fertilizers to farmers.
 The proposed project is based on recent technology with minimum energy
consumption per tonne of ammonia and urea which in-turn will facilitate low
emission from the proposed ammonia / urea plants.
2.10 MARKET SURVEY

2.10.1 Gap in Production and Consumption
Though the level of fertilizer consumption in India has all along been very low, the
indigenous production of Urea in has always been lagging behind the consumption
requirement except for the year 2000-01.
Table-2.4
Gaps between Consumption & Production of Urea
(‘000 tonnes of material)
Year Consumption Production Gap % of Gap to Consumption
2000-01 191.86 196.23 (+) 4.47 2.28
2005-06 222.95 200.85 (-)22.10 9.91
2006-07 233.38 203.10 (-)30.28 12.97
2007-08 259.63 198.60 (-)61.03 23.51
2008-09 266.49 199.22 (-)67.27 25.24
2009-10 266.73 211.12 (-)55.21 20.85
2010-11 281.13 218.72 (-)62.41 22.20
2011-12 295.65 219.92 (-)73.73 25.61
2012-13 300.02 225.86 (-)74.16 24.72
2013-14 304.54 227.18 (-)77.36 25.40
(-) deficit (+) surplus

It may be seen from the above table that gap increased from 22.10 Lakh MT in 2005-06
to 77.36 Lakh MT in 2013-14. Surplus availability of urea in the year 2000-01 has been
due to decline in consumption on one hand and excess domestic availability particularly
in view of high opening stock on the other.
2.10.2 Future Supply Estimates

2.10.2.1 Indigenous Existing Supply
To meet the domestic demand for urea, production from the existing units in the country
stood at 227.18 Lakh MT during 2013-14, an increase of 1.32 Lakh MT over 2012-13.
Almost 21 plants operated above 100 % capacity utilization. It is likely that the same
trend shall be continued in the near future.
2.10.3 Projected Demand-Supply Gap

The following table gives scenario of the demand-supply gaps that are likely to emerge
by the end of 2016-17.
Table-2.5
Projected Demand Supply Gap for Urea
(‘000 tonnes of material)
2011-12 2012-13 2014-15 2015-16 2016-17
Demand Estimates (FAI) 28755 29733 31789 32870 33987
Supply Estimates
 Plants under Operation 20000 20000 20000 20000 20000
 OMIFCO 1652 1652 1652 1652 1652
 Revamp/ Debottlenecking 2560 2560 2560 2560 2560
Total Supply 24212 24212 24212 24212 24212
There is almost 3-4 lakh tones of Urea demand per annum for manufacturing of
complex fertilizers and for exports to neighbouring countries like Nepal, Myanmar etc.
This will increase the projected deficit level of Urea further.

2.10.4 Import of Urea

The policy objective of Government of India for fertilizer sectors, as reflected in the
past five year plans, has been directed towards achievement of maximum degree of self-
sufficiency in ‘N’ production, leaving only marginal quantities to be met through
imports.
In spite of very impressive growth in indigenous production, the gap between

consumption and availability from indigenous sources remained at a high level
necessitating high level of imports. However, the pragmatic approach of the
government towards achieving self-sufficiency helped in substantially narrowing the
gap. Imports of urea were brought down to almost negligible level during the seventh
plan period. Subsequently, the production could not keep its pace with the growth in
consumption, consequently imports of Urea, which had come down to nil during 2000-
01, has steadily risen back to a level of 18 Lakh MT of nutrient (Product 70.87 Lakh
MT) during 2013-14 in the country.
2.10.5 Demand Projections for Urea

All-India demand forecast of fertilizer nutrients and product Urea during 12th Plan &
onwards as projected in the Report of the Working Group on Fertilizer Industry for the
Twelfth Plan (2012-13 to 2016-17) based on Population Nutrition Method are presented
in Table 2.6.
Table-2.6
Demand Projections for Fertilizer
( Lakh MT)
Year Fertilizer Nutrients Demand Urea Demand
N P K Total
2016-17 198.61 95.17 41.38 335.16 336.77
2017-18 201.65 98.68 42.90 343.23 337.54
2018-19 206.32 100.96 43.90 351.18 345.36
2019-20 210.92 103.22 44.88 359.02 353.07
2020-21 215.45 105.43 45.84 366.72 360.64
2024-25 230.60 115.30 50.13 396.03 380.99

To ensure uninterrupted supply in the eventuality of break down and unforeseen

demand, buffer stock up to a limit of 5% of the seasonal requirement is to be
maintained. Also taking into consideration 10% of the supply in the pipeline, projected
production capacity should be 15% above the projected demand of Urea as indicated in
Table above. Thus the Projected Production Capacity of Urea in the terminal year of
12th Plan should be around 400 Lakh MT.
2.10.6 Employment Generation (Direct & Indirect)

It is envisaged that the proposed project would generate employment opportunity
during construction phase as well as operation phase. For carrying out construction
related activities, it is envisaged to engage skilled, semi-skilled and unskilled workers
from local area to the maximum extent.
2.10.7 Manpower Requirement
Based on the organizational pattern followed in the existing fertilizer plants, it is

envisaged that, the total number of personnel required for operating in different plants
and establishments during normal operation in three shifts and at full rated capacity
would be about 460 directly employed & 1500 indirectly employed. The breakup of
direct employment is given in Table-2.7.
Table- 2.7
Man Power Requirement
S. No. Description Estimated Manpower Requirement
1. Plant Head 10
2. Production / Operation 210
3. Maintenance 112
4. Technical Services 22
5. Materials Management 28
6. Safety & Fire Fighting 15
7. Finance & Accounts 13
8. Personnel, Admn. & Medical 40
9. Marketing 10
Total 460

3.0 PROJECT DETAILS

3.1 Type of Project
The proposed project is based on recent Best Available Technology (BAT) with an aim
to reduce the energy consumption per tonne of production by adopting the modern
proven, fail-safe technology. The proposed project fulfills the aims and objective of EIA
by reduction in energy and natural resources like NG & water. This is a part of “India’s
Low Carbon Strategy” and INTENDED NATIONALLY DETERMINED
CONTRIBUTION (INDC) under UNEPCCC Protocol.
The proposed project is an independent project and not interlinked with any other
project. Implementation of new technology which consumes approximately 7.005
Gcal/Te of ammonia and 4.904 Gcal/Te of Urea shall facilitate low emission from
proposed ammonia / urea plants. It will recover maximum energy due to
implementation of new technology.
3.2 Co-ordinates of the project

The Geo Co-ordinate of Barauni fertilizer complex is at Longitude 25024'45" N and
Longitude 86001'40" E at an elevation of 45 m above mean sea level (MSL).
3.3 Details of Alternate Site

The choice for selection of alternate site is not open as the proposed Ammonia / Urea
Plants shall be installed within plant premises of old existing Barauni fertilizer
complex.
3.4 Size & Magnitude
The proposed Ammonia-Urea project will include the following main units:
 Single Stream Ammonia plant with capacity of 2200 MTPD
 Single Stream Urea plant with capacity of 3850 MTPD
 Urea bagging and loading facilities etc.
 All offsite & Utilities (Power, steam, water, inert gas, instrument air, effluent
treatment, cooling tower, safety/fire fighting, Gas Metering and refurbishment of
Non-Plant building facilities).

The project shall be implemented within premises of existing closed Barauni fertilizer
complex.
5.0 Raw Material & Utilities

5.1 Raw Material Consumption
5.1.1 Consumption Norms
The requirement of raw material and utilities for the proposed project has been worked
out on the basis of rated capacity operation of the ammonia urea plants. The
requirement of various inputs for 2200 MTPD Ammonia and 3850 MTPD Urea plants
are summarized in Table- 5.1:
Table-5.1
Raw Material & Utility Requirement
Raw Material/Utilities Unit Requirement
Natural Gas (LHV 8653 kcal/Nm3) Nm3/hr 90910
Treated Water m3/hr 1100
Neem Oil Kg/hr 56.15
5.1.2 Natural Gas

NG / R-LNG will be made available for the proposed project from 18" & 922 Km long
(mainline) GAIL’s Jagdishpur-Phulpur-Haldia pipeline. The Cabinet Committee on
Economic Affairs has recently approved the viability gap funding for NG pipeline from
Jagdishpur to Haldia and Bokaro to Dhamra (JHBDPL). The project will cover states
like U. P., Bihar, Jharkhand, Odisha & WB.
5.1.3 Water
The total requirement of treated water for the complex is envisaged to be around 1100
m3/hr. Raw water requirement (1265 m3/hr) will be made available from proposed new
10 nos. of bore wells.
5.1.4 Bags
Urea will be sold in 50 kg bags. The provision has been made for use of polyethylene
bags. The delivered price of bag has been considered as Rs. 19.0/bag

5.1.5 Catalysts
The following catalysts would be required for the project:
1. Hydro-desulphurisation
2. Primary Reformation
3. Secondary Reformation
4. HT Co-Shift Conversion
5. LT Co-Shift Conversion
6. Methanation
7. Synthesis
5.2 Resource Recycling/Reuse
The proposed project envisages resource recycling and reuse. The entire amount of effluent
shall be treated and reused either in plant or in maintenance of green belt areas. Efforts
shall be made to adopt Zero Liquid Discharge (ZLD) concept.
5.3 Availability of Water, Energy & Power
Water
Raw water requirement of 1265 m3/hr will be made available from proposed 10nos. of
new bore wells.
Energy
To meet the requirement of proposed fertilizer complex, provision of NG based 1 no.
each of GTG of 15 MW ISO rating capacity and STG of 10 MW capacity has been kept
to ensure uninterrupted power supply to the plant. The exhaust gas from the GT shall be
utilised for HP steam generation required in Urea plant and STG.
5.4 Quantity of Waste (Solid & Liquid)
The main solid wastes to be generated will be spent catalysts, spent resins, activated
carbons, etc. Spent catalyst shall be stored, handled as per Hazardous & Other Wastes
(Management & Trans-boundary Movement) Rules 2016 and shall be disposed of
through SPCB authorized recyclers. The quantity of wastes are as under:
Spent catalyst (Non-ferrous): Approx. 800 MT in 4 - 5 years.
Spent oil: Approx. 1 KL per month (max.)
WTP sludge = 100 Kg/hr (max.)
ETP sludge =100 Kg/hr (approx.)

6.0 ENVIRONMENTAL CONSIDERATION

HURL Barauni does not fall in the list of critically polluted area identified by CPCB as
per Comprehensive Environmental Pollution Index (CEPI). The proposed plant shall be
established based on new generation technology and inbuilt pollution abatement devices.
All the required civic amenities like School, College, Hospitals etc. are available within
10 km radius of project site.
6.1 Waste Management & Disposal System

Waste Management & Disposal System for the proposed project is described below:
Gaseous Emissions During Combustion of Fuel
Fuel used in the proposed project is NG. Hence, SO2 emissions are not anticipated.
Ultra Low NOx burners will be installed to keep NOx emission at minimum.
Production Processes
Urea dust (less than 50 mg/m3) and ammonia (less than 150 mg/m3) emissions are
envisaged from Urea Prilling Tower (UPT) & Ammonia plant. Flare stack and vent stack
of adequate height shall be provided in the respective plants.
Material Handling
To control the emissions in the Urea bagging plant, the plant has been provided with de-
dusting system. Dust from various points will be collected and sent to Urea plant where it
will be dissolved in Urea solutions and reprocessed.
6.2 Liquid Effluents

Effluent generated from the process, shall be treated within the complex:
 Ammonia plant process condensate will be treated in the process condensate stripper
and recycled to the process as Boiler Feed Water.
 Urea plant process condensate shall be treated in in-built Urea hydrolyser and
recycled to the process as Boiler Feed Water.
 Cooling tower and DM plant effluent shall be treated and re-used in the system.
 Domestic effluent after treatment in the STP shall be used for green belt development,
to the extent possible.

6.3 Solid Waste

Hazardous waste generated in the Ammonia-Urea plants such Spent Catalyst, used Oil
etc. shall be sold to authorized vendors as per Hazardous & Other Waste (Management &
Trans-boundary) Rules, 2016.
7.0 EMPLOYMENT GENERATION

It is envisaged that the proposed project would generate sufficient employment
opportunity during construction phase as well as operation basis. For carrying out
construction related activities, it is envisaged to engage skilled, semi-skilled and unskilled
workers from local area to the maximum extent.
7.1 Manpower Requirement

Based on the organizational pattern followed in the existing fertilizer plants, it is
envisaged that total number of personnel required for operation of the proposed plants in
three shifts and at full rated capacity would be about 460 nos. directly employed & 1500
nos. indirectly employed. The break-up is as under:
Table- 7.1
Man Power Requirement
Sl. No. Description Estimated Manpower

Requirement
1. Plant Head 10
2. Production / Operation 210
3. Maintenance 112
4. Technical Services 22
5. Materials Management 28
6. Safety & Fire Fighting 15
7. Finance & Accounts 13
8. Personnel, Admn. & Medical 40
9. Marketing 10
Total 460

8.0 REHABILITATION & RESETTLEMENT PLAN
Old & closed Barauni fertilizer complex is spread over an area of 630 acres of land and is
under the administrative possession of HFCL, which is also one of the members of JVC.
The proposed fertilizer project of HURL shall be implemented within the plant premises
of HFCL, Barauni. Hence, any planning with respect to rehabilitation & resettlement is
not applicable.
9.0 PROJECT SCHEDULE & COST ESTIMATES

9.1 Project Schedule
The project completion scheduled shall be 36 months after issuance of EC.
9.2 Cost Estimates
The capital cost of the proposed project 2200 MTPD ammonia and 3850 MTPD urea
along with associated offsite & utility facilities is estimated to be Rs. 5847.10 Crores.
Details of the requirement are as under:
Table-9.1
Project Capital Cost Estimates
(Rs. Lakhs)
1.0 Main Plants 111894 189310 301204
2.0 Off-Site Facilities 3816 89603 93419
3.0 Spares 5758 10789 16547
4.0 Project Management Charges 70 11294 11364
5.0 Engineering fee & Services 21803 27896 49699
6.0 Non Plant Building 0 4000 4000
7.0 Township 0 6000 6000
8.0 Piling 0 5000 5000
9.0 Land Development 0 2976 2976
10.0 Total Manufacturing Facilities 143341 346868 490209
11.0 Working Capital Margin 0 17272 17272
12.0 Contingency 7167 15220 22387
13.0 Net Commissioning Expenses 0 7000 7000
14.0 Land/Usable Assets of HFCL 0 21439 21439
14.0 Interest During Construction 0 26403 26403
Total Project Cost 150508 434202 584710
Note: FC - Foreign Currency, IC- Indian Currency
Assumptions are provided in Annexure – I.

10.0 COST OF PRODUCTION

10.1 Capacity and Level of Production
The capacities of proposed Ammonia and Urea plants have been considered as 2200
MTPD and 3850 MTPD respectively. The conversion of total Ammonia will be about
3850 MTPD Urea and there will not be any surplus ammonia. The cost of production of
Urea has been worked out assuming operation at rated capacity and 330 days stream
efficiency. The annual production of Urea on these assumptions will be 12.70 Lakh MT.
10.2 Cost of Production

The cost of production of Neem coated Urea has been worked out at 95% and rated
production (100%) levels and presented below:
Table- 10.1
Cost of Production of Neem Coated Urea
Sl.No. Level of Production COP of Urea (Rs./MT)
1.0 95% level 18445
2.0 100% level 18113
10.3 Input Prices
The cost of production has been calculated based on the following prices of raw material,
utilities and packing material as given as under:
Table- 10.2
Input Prices
Sl.No. Item Unit Unit Price (Rs.)

3 3
1.0 NG/RLNG (LHV=8653 kcal/Nm ) 1000Nm 17254
3
2.0 Water Cess 100 m 60
3.0 Neem Coating Cost MT of Urea 143
4.0 Bags 1 No. 19.0

11.0 ANALYSIS OF PROPOSAL

The final analysis of proposal may be briefed as under:
a) The revival of Barauni Fertilizer Complex will narrow the gap between demand and
supply of Urea in eastern zone of India.
b) Proposed project site as well as area in Bihar State has never been identified as
“CRITICALLY POLLUTED AREA/ ZONE” by CPCB.
c) The implementation of recently developed Best Available Technology (BAT) which
is a reliable and reproducible in different environment throughout the globe will
reduce the carbon load of the country.
d) The proposed project fulfills aims & objectives of EIA to save & conserve the natural
resources like NG, Water etc., in compliance to the resources conservation and reuse
act.
e) The proposed project is a part of “India Low Carbon Strategy” and INTENDED
NATIONALLY DETERMINED CONTRIBUTION (INDC) under UNEPCCC
Protocol.
f) The policy for revival of Barauni fertilizer complex is based on the recommendation
of Cabinet Committee on Economic Affairs (CCEA) of Government of India held on
4.8.2011.
10.0 CONCLUSION
Based on the facts mentioned above, the proposed project proposal of HURL for
installation of new Ammonia-Urea fertilizer complex deserves a sincere consideration on
priority basis for implementation of project in time.

Plate-1
Location of Old Closed Barauni Fertilizer Complex of HFCL on Google Map

Plate-2
Location of Old Closed HFCL Barauni fertilizer complex on Geographical Map

PLATE-3
PLOT PLAN OF PROPOSED BARAUNI UNIT OF HURL

PLATE-1.4
BLOCK DIAGRAM OF PROCESS OF PROPOSED AMMONIA PLANT

PLATE-1.5
BLOCK DIAGRAM OF PROCESS OF PROPOSED UREA PLANT

PLATE-1.6
BLOCK DIAGRAM OF RAW MATERIAL & UTILITY BALANCE

Note: Zero date will start after issuance of EC from MoEF&CC
PLATE-1.7
BAR CHART SHOWING PROJECT COMPLETION SCHEDULE

28 Dec 2016 160300010GYGFUIJTAnnexure-Pre-feasibilityReportPFR

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Feasibility report for EC of Ammonia/ Urea Project of HURL at Barauni, Begusarai (Bihar)

1.0 EXECUTIVE SUMMARY

Projects & Development India Limited, Sindri 1 of 36

1.1 PROJECT LOCATION

1.2 PROJECT AT A GLANCE

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1.3 Environmental Consideration

Sl. No. Raw Material/Utilities Unit Requirement

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1.6 PROJECT IMPLEMENTATION PLAN & TIME SCHEDULE

1.6.2 Time Schedule

1.9 NEED & JUSTIFICATION

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Projects & Development India Limited, Sindri 5 of 36

The ammonia-urea complex of HFCL located at Barauni in Begusarai district of Bihar

2.2 Revival of Barauni Unit of HFCL

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2.3 Project Location

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2.3.2 Site Characteristics

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2.5 Proposed Project Facilities & Description

SI.No. Facility Capacity

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SI.No. Facility Capacity

3.0. Offsite Facilities

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4.8 Steam & Power Generation System

2.6 DESCRIPTION OF PROJECT

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2.6.2 Urea Plant

2.6.3 Ammonia Storage

2.6.4 Urea Storage, Handling and Bagging

2.6.5 Water Supply, Treatment and Distribution

Projects & Development India Limited, Sindri 12 of 36

2.6.6 Cooling Water System

2.6.7 Ammonia, CPP and OSBL Cooling Water System

 Other Misc. facilities

2.6.8 Urea Cooling Water System

Projects & Development India Limited, Sindri 13 of 36

 Process use (Chemical reaction, stripping steam etc.)

 Steam drives for some of the compressors/pumps

 As heating medium for steam heated exchangers

 Steam tracing of lines

 Intermittent requirement like decoking, purging etc.

 For plant lighting and other miscellaneous purposes, etc.

To meet the power requirement of proposed fertilizer complex, provision of NG based

Projects & Development India Limited, Sindri 14 of 36

2.6.10 Instrument Air Facilities

2.6.10 Fire Fighting System

2.6.11 Effluent Treatment

2.6.12 Auxiliary & General Welfare Facilities

The following facilities have been considered under this head.

Projects & Development India Limited, Sindri 15 of 36

 Smoke detection system

 Laboratory Equipment incld. Lab Chemicals

 Public address system

 Computers & Software

 Pollution Monitoring System

 Furniture’s & Fittings (Plants & Township)

 Office, Canteen, First Aid etc.

2.6.13 Transport Facilities

2.6.14 Construction Facilities

The following facilities have been considered: