The Hindu Business Line : FACT calls for EoI for downstream projects on BOT or jt venture route

THE ailing Fertilisers and Chemicals Travancore Ltd (FACT), in a bid to improve its performance by optimum utilisation of its existing facilities such as infrastructure, land and utility services, has called for expression of interest from parties for setting up a number of downstream projects in its complex.

The company has proposed to set up a 1,100-tonne-per-day (tpd) sulphuric acid plant so as to meet the requirements of enhanced production of phosphoric acid as well as nitrogen and potash (NP).

At present, there are limitations in sourcing phosphoric acid from either indigenous or foreign agencies, on a sustained basis, said Mr K.P. Balagopalan, General Manager in charge of Production Control, and Mr Padmadasan, Company Secretary.

Cost of captive phosphoric acid is lower by Rs 1,500 to Rs 2,500 a tonne than the cost of acid sourced from external sources, they told a group of media persons. The Factamphos plant is capable of producing seven lakh tonnes per annum but to achieve this level on a sustained basis, it has become necessary to revamp the existing phosphoric acid plant to 500 TPD, besides installing a new sulphuric acid plant of 1,100- TPD capacity.

The project could be implemented on a BOT/joint venture basis with interested parties. The fertiliser company's participation, however, would be in the form of land, utility services, infrastructure facilities and marketing etc, they added.

FACT could provide land, engineering services and facilities such as sulphur handling, utilities, effluent treatment etc. including operation of the plant. Products, viz, sulphuric acid and steam, would be taken by FACT for its own requirement, they said. The total investment required would come to around Rs 100 crore.

Another proposed project is capacity enhancement of phosphoric acid plant and augmentation of port handling facilities involving an investment of Rs 60 crore.

Besides, commercial exploitation of phosphogypsum, a by-product of phosphoric acid, is a highly potential area. With every tonne of phosphoric acid manufactured, about five tonnes of gypsum is produced. As it does not have any major use at present it is being piled up in the company.

Recently, an Australian company, Rapidbuilding Systems Private Ltd, has offered technology for the conversion of phosphogypsum into building materials. It could be calcined to produce gypsum plaster, which has extensive use in the building industry. FACT could supply the raw material required for the manufacture of calcined gypsum for manufacturing gypsum bricks, board etc.

In order to commercially utilise gypsum the company has proposed to set up an industrial park by providing land for setting up the production facilities. The total capital investment would come to Rs 67 crore for setting up the calciner plant and a unit of rapid wall plant.

It has also proposed to set up a single stream urea plant of 1,100 TPD at Udyogamandal utilising the ammonia from the 900 TPD ammonia plant and the carbon dioxide available there, along with facilities for storage and bagging.

This could also be set up as a joint venture or on a BOT basis with estimated investment of Rs 350 crore. Participation by FACT could include engineering services and marketing of the bagged product. Sales of urea would increase the turn over of the company by Rs 290 crore, they said.

Another proposal is to expand the capacity of the existing caprolactum unit from 50,000 tonnes a year to 1.5 lakh tonnes. Expansion of this plant would pave the way for setting up of down-stream units such nylon-manufacturing unit. The investment expected for this project is of the order of Rs 400 crore.

Another proposal is for re-establishing urea production by the company by revamping the existing defunct urea plant at its Cochin Division by adopting the latest revamp technology for achieving a production of 1,300 tpd of urea. The investment estimated for this project is Rs 1,000 crore.

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