Mangalore Chemicals and Fertilizers Ltd (MCF) has proposed conversion of feedstock from naphtha to natural gas and fuel from furnace oil to natural gas in its fertilizer plant at Panambur in Karnataka\'s D K district.

In its letter to the Environment and Forests Ministry, the company said it is the only major fertilizer industry in Karnataka producing and marketing over 1 million tonnes of fertilizer per annum. The total turnover of the company in 2010-11 was Rs 2500 crore.

The company gave the following reasons for the need for NG conversion:

1. GOI policy - fertilizer units to convert feedstock/fuel from naphtha/furnace oil to NG.
2. Reduction in environmental impact.
3. Ensuring fertilizer availability and food security.
4. GOI mandated usage of NG to reduce subsidy burden and to compete in international market due to lower
price of NG.

MCF said there is no additional land, water or power requirement for the project.

The production after implementation will be: Ammonia - 247500 TPA; Urea - 429000 TPA; and Ammonium
bicarbonate - 24750 TPA. The project cost is Rs 435 crore.

The company said there will be no additional solid waste and hazardous waste generation due to the
proposed NG conversion project.

It also said that after the conversion, there will be drastic reduction of SO2, NOx, PM and CO2 emission.

According to MCF, it will undertake a number of risk mitigation measures like:

1. Keeping the area around NG lines free from combustible material.
2. Approved onsite emergency plan.
3. Training the plant personnel through periodic mock drills.
4. Full fledged fire crew with fire tender, trolley pump and pick-up jeep.
5. Mutual aid with neighbouring industries.
6. Water mist fire extinguishers of AFT make, Germany.
7. Communication equipment like walkie talkie, mega phones etc.
8. High quality PPEs.