Kakinada-based Nagarjuna Fertilizers and Chemicals Limited (NFCL) has initiated the process for setting up a new production facility for the production of 1.27 million MT/Annum of fertilizer grade urea within the existing complex.

The total project area is 1127 Acres in which 789 Acres are dedicated for greenbelt and 160 acres for water bodies. The total project cost is U$ 904 million in which the pollution control cost is U$ 6.3 million. The production capacity of the plant is 2200 MTPD Ammonia and 3860 MTPD of UREA. It will require 240 people of man power. The project will be commissioned in 30 months.

JUSTIFICATION OF THE PROJECT

• India has a large demand and supply gap of urea in the country (Approximately 9 million MT/Annum by 2014-15) • South India is facing more shortage of urea than other parts of the country, especially in Andhra Pradesh, there is no other plant worth mentioning in Southern and Eastern Regions • The farmers of the regions are depending on the urea from the plants located in Northern India, and are exposed to the risk of non-availability of fertilizer on proper time, beside involving high transportation time and cost to the Government of India • It will reduce the burden of transportation system, which is already over stretched.• Kakinada is located at the land fall point of the KG basin. Hence, the pipeline cost for the project is very minimal, resulting in reduced gas transportation cost, as compared to the plants in the Northern states • The plant is an expansion of the existed one, and therefore, no fresh land acquisition is required • The project site is in the close proximity to the Kakinada Port.

ENVIRONMENT MEASURES – PREVAILING

• NFCL has committed for environmental quality and has been operating the plants since 20 years without any environmental issues • NFCL environmental policy is formulated based on the philosophy of zero effluent discharge, development of greenbelt and adopting latest technologies for protecting the environment • NFCL has stopped the following pollution control measures/equipments in the plants and these measures will be adopted in the proposed project with improved technology. • The capital investment for existing plants towards environment protection measures is Rs 200 crores and the estimated expenditure for the proposed project is Rs 30 crores • The EIRA study carried out by NEERI, confirmed that presently NFCL has been maintaining the pollution level below the quantities specified by APPCB norms.The study area of the proposed expansion of NFCL plant is spread over the radius of 10 Km of the plant. Its land cover is mainly comprised over 29.3% of brackish water, 4.1% of fresh water, 1.4% of turbid water, 18.3% of built-up land, 9.4% of plantation, 16.03% of shrubs and19.4% of agricultural land.

BENEFITS OF THE PROJECT

• It will reduce the demand and supply gap of urea in the country to the extent of 1.27 Million MT/Annum • The agricultural yield will get enhanced to facilitate the food security mission of the country • Because of the location of the project, the cost of production and the logistic cost of the movement of urea fertilizer will be low, which will help to save the subsidy burden on the Union Government • It will reduce the foreign exchange outgo because of prohibitive import price of urea • It will improve the overall socio-economic condition of the region by virtue of generating more direct and indirect employment and infrastructure facilities • Kakinada is located at the land fall point of the KG basin. Hence, the pipeline laying cost for the project is very minimal, resulting in reduced gas transportation cost, as compared to the plants in the Northern states • No fresh land acquisition is required. The project site is in the close proximity to Kakinada sea port. The project can be commissioned in shortest time of 30 months from the zero date.