Executive Summary

ENVIRONMENTAL IMPACT ASSESSMENT REPORT

For Matix Fertilisers and Chemicals Limited

2530 MTPD Ammonia 4430 MTPD Urea with 67 MW CPP (Phase II), Matix Fertilisers and Chemicals Ltd., Panagarh, Dist. Burdwan, West Bengal.
Proponent:

Matix Fertiliser and Chemicals Limited

October, 2012
Prepared by:

EQMS INDIA PVT. LTD. INDIA, Delhi

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

Contents
Executive Summary ................................................................................................................................... 3 E.1 E.2 E.3 Project Highlight ......................................................................................................................... 3 Location .................................................................................................................................... 3 Process / Technology ................................................................................................................. 4

E.3.1 Raw Material & Utilities: ............................................................................................................ 4 E.4 Pollutants Generation, Treatment and Disposal............................................................................. 4 Gaseous Emissions ........................................................................................................................... 4 E.5 Liquid Effluents .......................................................................................................................... 4 E.5.1 Effluents treated in the individual plant battery limits .................................................................... 5 E.5.2 Effluents treated outside the main process plant .......................................................................... 5 E.5.3 Non-treated effluents ................................................................................................................ 5 E.6 Solid Waste ............................................................................................................................... 5 E.7 Environmental Status of Plant Site and Study Area ....................................................................... 6

E.7.1 Site Characteristics ................................................................................................................... 6 E.7.2 Climate and Meteorology .......................................................................................................... 6 E.7.3 Soil ......................................................................................................................................... 6 E.7.4 Ambient Air Quality ................................................................................................................... 7 E.7.5 Ecology of the Study Area ......................................................................................................... 7 E.8 Environmental Impact Assessment .............................................................................................. 8 E.8.1 Topography and Soils ............................................................................................................... 8 E.8.2 Air Quality ................................................................................................................................ 8 E.8.3 Water Resources and Water Quality........................................................................................... 8 E.8.4 Land Use ................................................................................................................................. 9 E.9 Biological Environment ............................................................................................................... 9 E.10 E.11 E.12 E.13 Demographic and Socio-economic............................................................................................... 9 Risk Assessment ....................................................................................................................... 9 Disaster Management Plan ......................................................................................................... 9 Environmental Management Plan ................................................................................................ 9

E.13.1 Air Environment.................................................................................................................... 10 E.13.2 Water Environment ............................................................................................................... 10 E.13.3 Climatology and Meteorology ................................................................................................ 10 E.13.4 Green Belt ........................................................................................................................... 10 E.14 Environment Monitoring Plan..................................................................................................... 10

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Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

EXECUTIVE SUMMARY

E.1 Project Highlight

1. Matix Fertilisers & Chemicals Ltd. (MFCL) is a company of The Matix Group which has been established by the Kanodia family of the Datamatics Group. It is a multi business information technology organisation, which is diversifying into Fertilisers and chemicals business. The Matix Group to venture into high growth areas of manufacturing, infrastructure and services. 2. The Matix Group is carrying out construction of a green field large fertiliser complex (Urea ~ 1.4 MTPA) at Panagarh, Distt. Burdwan, West Bengal. The capacity of this fertiliser complex is as follows: Ammonia Plant 2200 MTPD Urea Plant 3850 MTPD All associated facilities 3. The above project is in advanced stage of construction and estimated to cost around Rs 5000 crores. For the above green field project MFCL has obtained Environment Clearance from Ministry of Environment and Forests (MoEF), New Delhi and Consent to Establish /No Objection Certificate from West Bengal Pollution Control Board 4. The MFCL Group has proposed to enhance the capacity from ~1.4 MMTPA to 3.00 MMTPA at Panagarh, Dist. Burdwan, West Bengal Expansion (PhaseII) as below: 5. New stream of: a. Ammonia 2530 MTPD and urea 4430 MTPD; b. 67 MW of gas based Captive Power Plant (CPP) c. The above will raise the total urea capacity to around 3.00MMTPA.and 100 MW CPP

E.2 Location
6. The location co-ordinates of the proposed plant site is: Latitude: 232611 - 232653N and Longitude: 872837 - 872958 E. 7. West Bengal Industrial Development Corporation (WBIDC) has allocated 498.49 acres of land for the project. 8. The expansion (phase-II) project will be based on NG / CBM. NG will be transported through Pata Haldia GAIL pipe line. CBM will be sourced from Essar Oil Limited; Raniganj.GAIL has already planned a gas pipeline from Pata Haldia which will pass in the vicinity of the site. Approximately 30 km pipeline will be laid from the take-off point to the plant site. Water requirement will be met from the Damodarriver. The finished product will be transported by rail and road. The site is well connected by road network and nearest highway is NH 2. The site is 16 km from nearest town of Durgapur. The district headquarter is Burdwan at about 43km from site. The nearest city is Kolkata at a distance of about 160 km by road. The nearest airport is Kolkata which is 160 km towards SE. The proposed plant site is around 6 Km from the nearest railway station of Panagarh towards NW.

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Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

9. The application for the Scoping of the said project had been submitted to the Ministry of Environment and Forest on 13th September, 2011. The project was considered for Terms of Reference (TOR) by Expert Appraisal Committee (Industry II) of MoEF in its meeting held on 17th February, 2012 and the TOR was granted on dated 16th August 2012.

E.3 Process / Technology

10. The existing ammonia urea complex (Phase I) and the proposed Ammonia Urea complex (Phase II) will have the same process technology i.e. Ammonia KBR process and Urea -Snam Progetti Process. 11. The proposed project will require an investment of about Rs. 5000 crores including expenditure of about Rs. 150 crores for pollution abatement measures.

E.3.1 Raw Material & Utilities:

12. Raw Material & Fuel: The basic input requirement for the ammonia/urea plant is natural gas/CBM. CBM will be supplied by ESSAR Oil Limited, Raniganj. Natural gas requirement of is 3.87 MMSCMD which will be met from Pata Haldia GAIL Pipe line. The pipeline is designed to carry around 20 MMSCMD of natural gas. Ministry of Oil & Gas has already been requested to allocate the gas for the Phase-II. 13. Water: The total water requirement for the proposed expansion has been estimated as about 7.8 MGD (35440 M3 /day which will be met from Damodar river through pipeline. 14. Power: requirements for the proposed Phase-II expansion would be met by installation of a 67 MW CPP consisting of gas turbine, heat recovery & steam generator (HRSG), auxiliary boiler and steam turbine power generator. The exhaust gas from the gas turbine with supplementary firing in HRSG boiler will be utilized for generating HP steam. During start up the steam generated from HRSG will be utilized to generate power through STG in CPP unit.

E.4 Pollutants Generation, Treatment and Disposal

E.4.1 Gaseous Emissions

15. MFCL proposed Phase II project has five continuous sources of emission namely Reformer flue gas stacks in ammonia plant. Auxiliary Boiler as Steam Generation Plant and HRSG (GTG) flue gas stack Urea Prilling Tower Flare Stack 16. Emissions from process section of the plant are controlled through the use of eco-friendly fuel. 17. Fugitive emission occurs in the bagging plant where urea is handled. In order to control the dust, the plant has been provided with dedusting system. Dust from various points is collected & will be sent to urea plant where it will be dissolved in urea solutions and reprocessed in urea plant.

E.5 Liquid Effluents

18. MFCL has followed the policy of at source treatment of effluents and recycling of treated effluents back into the process. The major potential liquid pollutants emanating from the MFCL complex are 4|Page

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

from the Ammonia and Urea process plants, Demineralization plant regeneration waste water, cooling tower blow down, boiler blow down etc. Various categories of effluents generated in the complex and their treatment philosophy is as given below:

E.5.1 Effluents treated in the individual plant battery limits

Ammonia plant process condensate is treated in the ammonia plant process condensate stripper, recycled to DM plant and after polishing used as boiler feed water. Urea plant process condensate treated in urea plant (hydrolyser/stripper), recycled to DM plant and after polishing used as boiler feed water. Turbine steam condensate treated in DM plant (polishing unit) and recycled back as BFW. Demineralization water plant effluent, neutralized before sending to Guard pond via settling chamber.

E.5.2 Effluents treated outside the main process plant

Ammonia and Urea process Condensate at ETP in case of upsets. Floor washings / process drains from ammonia and urea plants at ETP in case of non-confirming quality. Oil leakages / spillages from ammonia and urea plants at ETP Sanitary waste water from factory in Sewage Treatment Plants.

E.5.3 Non-treated effluents

Boiler blow down water via neutralization pit. Cooling tower blow down and filter backwash from ammonia and urea plants. Floor washings / process drains from ammonia and urea plants in case of confirming quality. 19. Effluent Treatment Plant and Sewage Treatment Plant The cooling tower blow down, boiler blow down and DM plant effluent will be routed through the ETP and domestic (sewage) effluent will be treated in the STP. The treated effluent from STP and ETP will be discharged after meeting the MINAS standard to outside water body in consultation with WBPCB.

E.6 Solid Waste

20. MFCL being an environmentally conscious organization will always stresses on pollution prevention rather than pollution Control. It has insisted on the protection and enrichment of the environment, conservation of the natural resources. To strengthen the waste management system, different types of wastes are identified along with proper disposal mechanisms. Basically the following types of solid wastes will be generated at MFCL: Biodegradable wastes Non-biodegradable waste Canteen Waste and Hazardous wastes

21. Following hazardous waste are generated at MFCL: S. No Type of Waste Description Quantity Method of Storage Disposal Method

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Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

1 2

Spent/Used Oil Spent Catalyst

From Process Unit From ammonia Plant

Hazardous Waste Max. 50 Kg/day (May vary with plant status) As per Process staus Non-Hazardous Waste 10 -- 15 containers per month. As per Process

MS Drums LDPE Lined Concrete pits. Sold to authorized vendors as per HWM rules

3 4 5

Empty drums of chemicals. Deactivated Carbon Spent Resins

Store in store Sold to authorized yard. vendors as per HWM rules From DM Plant Stored in Drums From DM Plant As per Process Stored in Concrete pits Solid waste will be disposed as per Hazardous Waste Management Rule.

E.7 Environmental Status of Plant Site and Study Area

E.7.1 Site Characteristics

22. MFCL proposed plant is located ESE of Panagarh town in Burdwan district of West Bengal at 23o 26 38 N latitude and 87o 29 13 E longitude at an altitude of 65 m above the mean sea level. Burdwan district with its varied tectonic elements and riverine features is a transitional zone between the Jharkhand plateau which constitutes a portion of peninsular shield in the west and Ganga- Brahamaputra alluvial plain in the north and east. 23. The study area predominantly comprises of rural and semi-urban environment. Panagarh is 16 kms away from Durgapur and is located on north of Damodar River, and is 160 kms WNW of Kolkata. Panagarh is under Durgapur subdivision which is surrounded by Asansol subdivision on the west, BurdwanSadar subdivision on the east, Bankura District across the Damodar in the South, and Birbhum district across the Ajay River to the north. The nearest major road is National Highway No.2 (NH-2) and the nearest railway station is Panagarh. Nearest village from the proposed site is Shyamsunderpur at about 3 km.

E.7.2 Climate and Meteorology

24. The climate of Burdwan district is winter season starts from about the middle of November and continues till the end of February. March to May is dry summer.June to September is monsoon while October and November is autumn. The normal rainfall is 1442 mm and the average rainfall is 1173 mm. Maximum rainfall in a day is 150 mm while bulk of rainfall occurs in the months of JulySeptember.

E.7.3 Soil
25. Different types of soils are encountered in different topographical, biological, hydrological and geological condition within the district. In the west, coarse gritty soil blended with rock fragments is formed from the weathering of pegmatites, quartz veins and conglomeratic sandstones. This soil is of reddish colour, medium to course in texture, acidic in nature, low in nitrogen, calcium, phosphate and other plant nutrients. Water holding capacity of this soil increases with depth as well as with the increase of clay portions. 26. Land use and land cover mapping of the MFCL study area was carried out by standard methods like digital image processing (DIP) supported by ground truthing. For this purpose digital data on 6|Page

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

CDROMs was procured from National Remote Sensing Agency (NRSA), Hyderabad. The results are given in Chapter 3 27. Meteorological data was generated for the study period for the months of December, January, and February 2012 in the project area. An automatic meteorological monitoring station was installed near the proposed plant site. Due care was taken in establishing the meteorological monitoring station to ensure free flow of winds without any obstructions. 28. Water: Six ground water and three surface water samples were collected and analysed for various parameters. It is observed (Tables 3.14) that quality parameters in the water from the sampling locations were within the prescribed (permissible) standards 29. Noise: Noise survey of the study area was carried out to understand the existing status of the noise level in the area. The noise monitored at 10 locations, both residential as well as at commercial locations, is given in Table-3.12. The noise levels observed at all sampling stations are primarily low as most of the areas are rural.

E.7.4 Ambient Air Quality

30. The ambient air quality in the 10 km radius study area will form the baseline information over which the predicted impacts can be superimposed to find out the net impact on the air quality in the project impact area. Ambient Air Quality Monitoring (AAQM) has been carried out during December 2011 to February 2012 with a frequency of twice a week for four weeks in a month for the entire season. A total of ten (10) ambient air quality monitoring stations were selected as per the above considerations. The minimum level of PM10 recorded in the study area was 17.6 g/m3 at Sonal and the maximum level recorded was 75.1 g/m3 at the project site. The minimum level of PM2.5 recorded in the study area was 8.2 g/m3 at Sonal and the maximum level recorded was 44.3 g/m3 at the project site.. The Maximum SO2 concentration was recorded 8.6 g/m3 at Durgapur village and minimum 4 g/m3 at so many places etc., The. Maximum NOX concentration was recorded near the 26.9 g/m3 project Site Area and minimum 6.8 g/m3 at Sonal respectively. The Maximum CO concentration was recorded 624 g/m3 at Durgapur village and minimum 58 g/m3 at Sonal and Bilaspur etc., Parameters like lead, HCM, HCNM, and Ammonia were below detectable limit.

E.7.5 Ecology of the Study Area

31. The baseline data not only helps in designing a project in such a way that the harmful impacts on the vegetation and fauna are avoided or minimised but also provides insight into the mitigation plans to ameliorate the adverse impacts on the natural settings. 32. A list of the identified flora and fauna of the study area was obtained from the Forest Department and is given in Table-3.17 and Table-3.18. Secondary data indicates that there are no Schedule-1 species found in the study area covering 10 km radius from the proposed project. 33. Socio-economic status of the population is the indicator for the development of the region. Any developmental project of any magnitude will have a bearing on the living and the economic 7|Page

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

conditions of the population in particular and the region as a whole. Similarly, the industrial development will have its share of socio-economic influence in the study area. This section delineates the overall appraisal of the socially relevant attributes. 34. In 2011, Bardhhaman had population of 7,723,663 of which male and female were 3,975,356 and 3,748,307 respectively. There was change of 12.01 per cent in the population compared to population as per 2001. In the previous census of India 2001, Burdhwan District recorded increase of 13.96 per cent to its population compared to 1991. The initial provisional data suggest a density of 1,100 in 2011 compared to 982 of 2001. Total area under Burdhwan district is of about 7,024 sq.km.

E.8 Environmental Impact Assessment

E.8.1 Topography and Soils

35. The proposed MFCL Phase II project will have construction activities and as such had no impact on the topography and soils of the study area.

E.8.2 Air Quality

36. During the operation of Phase II project, five new stacks of gaseous emission have been added. Phase I is under construction. The impact of both Phase I and Phase II on GLC of the study area is as below*: Pollutant Existing Max. GLC as observed Cumulative GLC Post plant Operation **NAAQS (g/m) (g/m) Location Phase I Existing Max. GLC + (g/m) Phase-I +Phase II NOx 26.9 Project Site 36.37 45.96 80 Sox SPM NH3 8.6 82.7 < 10 Durgapur Vill Durgapur Vill All Locations 8.886 91.2 <34.73 9.2 100.0 <61.01 80 ---400

** National Ambient Air Quality Standards

E.8.3 Water Resources and Water Quality

37. Water during operational phase is normally required for: Cooling Water Boiler Feed Water Process Water Domestic and Green Belt water requirement Service water 38. Water requirement for existing Phase I plant is around ~1590 m3 / hr (~ 38160 m3/day ) including 1200 m3/day for domestic purpose as given in Water Balance {Phase I} in Figure 2.3.The water consumption in proposed expansion project Phase II will be ~1477 m3 /hr. (35440 m3/day). The water will be drawn from Damodar River. Necessary approval / clearance from Statutory Authority/ Board will be taken. 39. Industrial wastewater after it is discharged into surface water body will not produce significant deterioration in its water quality. The effects on surface water depend on wastewater characteristics and quantity. The impact on surface water depends on the characteristics and also on quantity of water in the receiving water body. MFCL philosophy is of treating the effluents in the plant and recycling the same in the process {process condensates}. 8|Page

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

E.8.4 Land Use

40. The impacts on land environment are generally physical impacts due to change in topography, soil erosion, etc. MFCL will not be carrying any construction activities outside the premises. The construction activities within the premises are not going to alter the topography of the area and as such adverse impacts are not going to take place. 41. The operation of the Phase II will have no impact on the land use in the study area as no fresh land is being acquired for the plant or township.

E.9 Biological Environment

42. The proposed Phase II will have no impact on ecology of the study area. However, growth of plantation and development of green belt at the site is likely to improve flora at the site.

E.10

Demographic and Socio-economic

43. The operation of the Phase II project will have no adverse impact on the demography, agricultural pattern and other socio-economic conditions. However, the operation of proposed expansion plant had slightly positive and beneficial impact on the status of job opportunities (due to some fresh intake of staff (limited numbers only), increased inflow of raw materials and out flow of products and other commercial activities) and increase in industrial and commercial activities.

E.11

Risk Assessment MFCL fertilizer plant uses a number of hazardous chemicals, namely NH3, Acids, fuels and chlorine etc. The use of these chemicals is inevitable. MFCL has MSDS and understands the risks associated with these chemicals. Adequate control measures have been taken by the MFCL to prevent any dangerous incident. MFCL plant has a qualified and trained safety manager along with supporting staff / equipments to assist plant personnel working in the plant & to take all the safety precautions while carrying out various tasks. MFCL has provided PPE to operating personnel (as per requirement) for carrying hazardous activities. All the employees are being retrained through refresher in Fire & Safety training twice in a year. Regular health check of staff is carried out as per norms. Health reports are available to the staff for the information.

E.12

Disaster Management Plan On-site DMP is prepared to minimize the damage to plant machinery and personnel for the selected accident scenarios. Mock drills for the selected emergencies will be carried out, weak links in the system noted and necessary actions will be taken. On-site DMP also discusses suitable management procedures to handle emergencies caused by accidental release or spill of toxic or inflammable material or fire. Environmental Management Plan 9|Page

E.13

Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

E.13.1 Air Environment

44. In order to mitigate the adverse environmental impact due to the operation of all the MFCL Phase II project following measures are recommended: Close watch and control on the quality of raw material. {NG (S < 0.1 ppm) as increase in sulphur content will be immediately reflected in increased SOx emission and may affect the process also. The control measures through proper upkeep; preventive maintenance and good housekeeping will considerably reduce the fugitive emission. Monitoring of fugitive emission should be continued at human receptive points as per existing practice. Existing schedule monitoring system for air pollutants like SOx, NOx, ammonia and SPM should be continued. Schedule monitoring for new stack will be similar as in existing plant. Leakages {of gases / liquids/ dust} should be checked and promptly attended.

E.13.2 Water Environment

45. MFCL with operational experience of the plant should gradually reduce water consumption/ effluent generation 46. The existing system and efforts to conserve water and treatment of effluents should continue and now efforts should be directed to: Control of pollutant at source practices should continue. Increase the use of treated effluents in horticulture and green belt developments. The treated sewage should be utilized for irrigation Excess use of pesticide and herbicide should be avoided as they can cause ground water contamination. Water is a precious commodity and it should be conserved. Awareness program should be continued to increase the interest among employees for conservation of water. Water harvesting schemes should be implemented.

E.13.3 Climatology and Meteorology

47. The construction and operation of the proposed expansion of MFCL Phase II will not affect meteorology and climatology of the study area and as such no management plan will be required.

E.13.4 Green Belt

48. MFCL is developing green belt all around it and also along roads, MFCL should develop green belt: as per CPCB Guidelines.

E.14

Environment Monitoring Plan

49. MFCL is already having Environmental Management Cell which comprises well trained experts and engineers to undertake the following functions: Co-ordination with the production department and the Central and State Pollution Control Boards; Routine monitoring of the efficiencies of pollution control systems; Routine environmental monitoring at the source and the recipient level.

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Phase II, of 2530 MTPD Ammonia 4430 MTPD Urea Matix Fertilisers and Chemicals Ltd., Panagarh, Burdwan Dist. W.B.

50. A monitoring schedule, prepared in consultation with West Bengal State Pollution Control Board, shall be maintained for monitoring ambient air quality, stack emissions, waste water streams, river water during monsoon season, ground water, and noise levels.

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