Zuari gets initial approval for Goa ferts expansion

22 August 2008 17:25  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Zuari Industries Limited (ZIL) has secured preliminary environmental approval from the government for its fertilizer feedstock change-cum-expansion project at Zuari in Goa, a Government official said on Friday.

ZIL would expand ammonia capacity to 1,050 tonnes/day from 600 tonnes/day and urea capacity to 1,500 tonnes/day from 1,140 tonnes/day through the debottlenecking.

The government has asked ZIL to prepare environment impact assessment report on the project to secure final environment clearance, but it has exempted the company from holding a public hearing on the project, he said. 

ZIL would change the feedstock for the ammonia-urea stream to natural gas from naphtha as provided by the overnment’s urea subsidy policy.

The switch-over would result in substantial savings in subsidy due to replacement of costlier naphtha with cheaper gas and the reduction in energy consumption by ammonia and urea units. 

The project also envisages increase in capacity of one stream of NPK complex fertilizers to 1,600 tonnes/day from 500 tonnes/day.

Similarly, the company would ramp up the capacity of second NPK stream to 1,600 tonnes/day from 696 tonnes/day.

The project would result in surplus production of 180 tonnes/day of ammonia after meeting the requirements of the urea plant, which would be used as an intermediate in complex fertiliser units.

ZIL is parent company of Chambal Fertilisers and Chemicals Limited (CFCL).

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By: Naresh Minocha
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