SINDRI FERTILIZER FACTORY

THE SINDRI UNIT OF THE FERTILIZER CORPORATION OF INDIA LIMITED

(A GOVERNMENT OF INDIA UNDERTAKING)

AN OVER-VIEW
5 May 2006

L OCATION
SITUATED ON THE RIVER DAMODAR AT 20 KM FROM DISTRICT HEAD-QUARTERS OF DHANBAD WITHIN DHANBAD MUNICIPAL CORPORATION IN THE DHANBAD-JHARIA COALFIELD BELT OF JHARKHAND STATE ON JHARKHAND-WEST BENGAL BORDER. WELL CONNECTED WITH MAJOR CITIES LIKE DELHI, KOLKATA, MUMBAI, CHENNAI, JAIPUR, RANCHI, PATNA BY RAIL/ROAD. NEAREST RAIL HEAD DHANBAD (EAST CENTRAL RAILWAY) 26 KM BOKARO STEEL CITY (SOUTH EASTERN RAILWAY) 40 KM BHAGA (SOUTH EASTERN RAILWAY) 10 KM NEAREST AIRPORT BIRSA MUNDA AIRPORT, RANCHI (180 KM) N S BOSE INTERNATIONAL AIRPORT, KOLKATA (256 KM) JAYAPRAKASH INTERNATIONAL AIRPORT, PATNA (296 KM) NEARBY INDUSTRIES CEMENT (ACC LTD.) COAL/COKE (BCCL, TISCO, IISCO-SAIL) POWER (DVC AND OTHERS IN WEST BENGAL SIDE) FERTLIZER PROCESS CATALYST (PDIL)

ORIGIN OF THE SINDRI FERTILIZER FACTORY

The Sindri Fertilizer Project was conceived by the Government of India in the year 1944 following the recommendations of the Food Grain Policy Committee, formed after the great Bengal famine of 1943 The Company Sindri Fertilizer & Chemicals Limited came into being in December 1951 as the first Central Public Sector Company and all assets of the Sindri Fertilizer Project was invested in it. In January 1961, The Fertilizer Corporation of India Limited (FCIL) was incorporated by amalgamation of the Sindri Fertilizer & Chemicals Limited and the Hindustan Chemicals & Fertilizer Limited (formed in July 1959) FCIL grew into a multi-unit company and reorganized into five companies, viz. FCI, HFC, RCF, NFL and PDIL in April, 1978 Under the reorganization plan, the operating fertilizer plants at Sindri (Jharkhand) and Gorakhpur (UP), the fertilizer projects at Talcher (Orissa), Ramagundam (AP) and Korba (Chattisgargh) along with Jodhpur Mining Organization (Rajasthan) were formed into FCIL

HISTORICAL BACKGROUND
SINDRI FERTILIZER PROJECT 1944 SINDRI FERTILIZER & CHEMICALS LIMITED DECEMBER 1951

NANGAL FERTILIZER & CHEMICALS LIMITED FEBRUARY 1956 HINDUSTAN CHEMICALS & FERTILIZER LIMITED JULY 1959

TROMBAY PROJECT 1959

THE FERTILIZER CORPORATION OF INDIA LIMITED JANUARY 1961

REORGANIZATION OF FCIL
APRIL 1, 1978
FCIL

RCF
TROMBAY THAL VAISHET

HFC
NAMRUP* (NOW BVFCL)
BARAUNI DURGAPUR

FCI
SINDRI
GORAKHPUR RAMAGUNDAM

NFL
NANGAL BHATINDA PANIPAT

FPDIL
RENAMED PDIL

TALCHER HALDIA KORBA JODHPUR MINING ORGN.* (NOW FAGMIL) GUNA (VIJAYPUR)

* HIVED OFF INTO SEPARATE COMPANY

CHRONICLES OF DEVELOPMENT
80 MW CAPTIVE POWER 1951
RECOMMISSIONED IN 1998 AFTER FIRE IN ELECTRICAL INSTALLATIONS IN 1996 WITH OPERATING CAPACITY OF 24 + 10% (SHUTDOWN SINCE MARCH 2002)

272 TPD COKE BASED AMMONIA

(PHASED OUT IN 1978)

1951 1951

613 TPD AMMONIUM SULPHATE

CAPACITY ENHANCED TO 1040 TPD IN 1979 WITH COMMISSIONG OF RATIONALISATION /MODERNISATION PLANTS (PRODUCTION STOPPED IN 1992 & PLANT WRITTEN OFF IN 1995 FOLLOWING PRODUCTS WITHDRAWAL FROM RETENTION PRICING)

612 TPD (60 OVEN) CAPTIVE COKE OVEN

PHASED OUT IN 1978; 30 OVENS RENOVATED & REBUILT IN 1984 WITH OPERATING CAPACITY OF 306 TPD (PHASED OUT IN 2001)

1954

(Contd.)

CHRONICLES OF DEVELOPMENT(Contd.)
189 TPD COKE OVEN GAS BASED AMMONIA 1959
(PHASED OUT IN 1978)

71 TPD UREA
(PHASED OUT IN 1978)

1959 1959 1959 1972

(Contd.)

225 TPD NITRIC ACID

(SHUTDOWN SINCE MARCH 2002)

406 TPD AMMONIUM SULPHATE NITRATE

(PHASED OUT IN 1978)

60 TPD AMMONIUM NITRATE

(SHUTDOWN SINCE MARCH 2002)

CHRONICLES OF DEVELOPMENT(Contd.)
SINDRI RATIONALISATION PLANTS
800 TPD PYRITES BASED SULPHURIC ACID 360 TPD PHOSPHORIC ACID 1000 TPD TRIPLE SUPERPHOSPHATE (PRODUCTION STOPPED IN 1984 DUE TO UNECONOMIC OPERATION & WRITTEN OFF IN 1988)

1976

SINDRI MODERNISATION PLANTS

900 TPD LSHS BASED AMMONIA 1000 TPD UREA (SHUTDOWN SINCE MARCH 2002)

1979

12 TPD AMMONIUM BICARBONATE

(SHUTDOWN SINCE MARCH 2002)

1985

QUANTATIVE INFORMATION OF GOODS MANUFACTURED

PRODUCTS _______
1. 2. 3. 4. 5. UREA AMMONIUM NITRATE AMM. BICARBONATE AMMONIA NITRIC ACID

LICENCED CAPACITY
3,30,000 MT 9,000 MT 3,000 MT 2,97,000 MT -

INSTALLED CAPACITY
3,30,000 MT 9,000 MT 3,000 MT 2,97,000 MT 78,870 MT

TECHNOLOGIES EMPLOYED IN AMMONIA-UREA COMPLEX

PLANT SECTION TECHNOLOGY

AMMONIA AIR SEPERATION GASIFICATION CO-SHIFT CONVERSION GAS PURIFICATION (RECTISOL) SYNTHESIS
UREA

LINDE SHELL LURGI LURGI

UDHE/TOPSOE

SYNTHESIS, TECHNIMONT RECOVERY & PRILLING (TOTAL RECYCLE)

OFFSITES FACILITIES
LSHS STORAGE
METHANOL STORAGE

26, 600 KL
1,164 MT

COAL STORAGE STEAM GENERATION POWER PLANT

UREA STORAGE AMMONIA STORAGE SILO HORTON SPHERE ATMOS STORAGE

150,000 MT 60,000 MT
30,000 MT 1,500 MT 5,000 MT

FACTORY ASSISTED RAILWAY SIDING

16 Track KM

WATER SOURCES
SOURCE OF WATER DAMODAR RIVER SIDE PUMPING STATIONS (EMBEDDED BETWEEN TENUGHAT AND PANCHET DAMS) NO. OF PUMPING STATIONS 2 PUMPING CAPACITY OF EACH STATION 14000 GPM INSTALLED CAPACTY 20 MGD MAXM. RAW WATER HANDLING 15 MGD RAW WATER STORAGE (SETTLING TANK) NO. OF TANKS (PONDS) 2 INTER-CONNECTION IN SERIES TOTAL CAPACITY 240 MG FILTERATION PLANT NO. OF UNIT 4 CAPACITY 11.75 MGD

GOWAI BARRAGE SALIENT FEATURES

Area Acquired: a. Dam Catchments b. Approach Road Water Spread Area Length of Barrage Bed Level at Barrage Depth of Water Storage Average Gradient of River Bed Max. Water Level (Working Level) No. of Sluice No. of Tilting Gates No. of Solid Weirs Tilting Gate Level Catchments Area Flow of River (Theoretical) Maximum Discharge (Practically) (computed on 19th April 1950) Nett Storage Capacity of Barrage The barrage is not in use for over 25-30 years. 414.98 Acres 52.17 Acres 255 Acres 9073 435/436-0 25-0 1 in 380-0 460-0 above MSL 14 3 9 462-0 384 Miles 70,000 cusecs 90,000 cusecs 600 million Gallons

UTILITIES
POWER
CONTRACTED LOAD FROM DAMODAR VALLEY CORPORATION (132/11 KV DVC SUBSTATION LOCATED IN FACTORY COMPLEX) CAPTIVE POWER PLANT TO MEET CRITICAL LOAD REQUIREMENT OF 24 MW BASED ON OPERATION OF 6 STROKER FIRED BOILERS AND 4 TURBOGENERATOR SETS

FCIL ASSISTED RLY SIDING/MARSHALLING YARD

TRACK LENGTH INITIAL INVESTMENT TAKEOFF FEEDING JUNCTION SIDING AREA 16 KMs FCIL-75%; RAILWAYS-25% SINDRI BLOCK HUT (ECR) PRADHAN KUNTA (ECR) 182 ACRES

SINDRI - THE PERFORMER

UREA PRODUCTION & PLANT PERFORMANCE PRODUCTION (x 10,000 Te) CAPACITY UTILISATION (%) PLANT LOAD FACTOR (%) 110 100 90 80 70 60 50 40 30 20 10 0

81-82

82-83

83-84

84-85

85-86

86-87

87-88

88-89

89-90

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

CAPITAL EMPLOYED & LOSS STATUS FOR FCIL, SINDRI UNIT

FCIL

AUTHORISED SHARE CAPITAL FOR FCIL PAID-UP SHARE CAPITAL FOR FCIL ACCUMULATED LOSS FOR FCIL (AS ON 31 MARCH 2006)

Rs. 800.00 Crores Rs. 750.92 Crores Rs.12741.75 Crores

SINDRI UNIT

SHARE CAPITAL ALLOCATED TO SINDRI UNIT Rs. 381.14 Crores ACCUMULATED LOSS FOR SINDRI UNIT Rs. 2938.15 Crores (AS ON 31 MARCH 2006)

LOAN & LIABILITIES FOR FCIL, SINDRI UNIT

(AS ON 31 MARCH 2006)

SECURED LOAN UNSECURED LOAN

(FROM GOVT. OF INDIA)

Rs. 821 Crores Rs.2622 Crores Rs. 115 Crores Rs. 3 Crores Rs. 67 Crores

INTEREST ACCRUED & DUE

(ON GOVT. OF INDIA LOAN)

MAJOR CREDITORS (PSU/GOVT DEPTT.) MAJOR CREDITORS (PRIVATE PARTIES) OTHER LIABILITY INCL PROVISIONS

SINDRI - THE PERFORMER

FINANCIAL PERFORMANCE DURING LAST TWENTY ONE YEARS OF OPERATION
250 200 150 100 50

PROFIT/LOSS BEFORE INTEREST & DEPRECIATIAN TOTAL INTEREST TOTAL PROFIT/LOSS

Rs. in Crores

0 -50 -100 -150 -200 -250 -300 -350

81-82

82-83

83-84

84-85

85-86

86-87

87-88

88-89

89-90

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

VALUE OF FIXED ASSETS

LAND Rs. 1600+ Cr (ESTIMATED)
(ESTIMATE BASED ON THE VALUATION OF THE STATE GOVT EFFECTIVE FROM 2005 FOR RESIDENTIAL LAND OF SINDRI (DHANBAD) AND BHOJUDIH (BOKARO) MAUZAS

BUILDINGS, ROAD, ETC.

Rs. 600+ Cr (ESTIMATED)

(BOOK VALUE Rs. 1 Crores AS ON 31 MARCH 2006 AFTER DEPRECIATION)

PLANT&MACHINERY,ETC. Rs. 162 Cr

(BOOK VALUE AS ON 31 MARCH 2006 AFTER DEPRECIATION) NOTE: VALUATION OF THE ASSETS IS YET TO BE DONE

LAND COMPOSITION & USES

LAND ACQUIRED DHANBAD BOKARO/PURULIA TYPE 6652.61 ACRES

6185.46 ACRES 467.15 ACRES

FREE HOLD; FULL INTEREST

LAND USES PERMANENTLY TRANSFERRED TO STATE GOVT. FCIL FACTORY & FACTORY UTILITIES BARRAGE ON RIVER GOWAI LANDING GROUND (AIR STRIP) OTHER CPSU/PUBLIC UTILITIES (LEASED) TOWNSHIP RIVER BED OTHERS

478 ACRES 1195 ACRES 467 ACRES 113 ACRES 693 ACRES 1194 ACRES 596 ACRES 1117 ACRES

TOWNSHIP
ACCOMODATION ROAD CULVERTS SEWER WATER LINES MANHOLES STORM WATER DRAINS SEPTIC TANKS STREET LIGHTINGS POLES 6542 UNITS 81 KM 360 NOS. 100 KM 5000 NOS. 120 KM 105 NOS. 1992 NOS.

PUBLIC UTILITY FACILITIES

EDUCATION 1 ENGINEERING COLLEGE 1 DEGREE COLLEGE 4 SENIOR SECONDARY SCHOOLS (FCIL MANAGED 1 SENIOR SECONDARY(CBSE), 3 ECONDARY(JAC) AND 3 MIDDLE SCHOOLS (JAC) HAVE SINCE BEEN CLOSED) AMENITIES 205 BED SPECILITY HOSPITAL WELFARE CENTRE OFFICERS CLUB SPORTS GROUND MARKETS POST OFFICE TELEPHONE EXCHANGE POLICE STATION BANKS LIFE INSURANCE TOWN RAILWAY STATION AIR STRIP

OTHER FACILITIES

MAJOR REASONS FOR SICKNESS

UNSCIENTIFIC DIVISION OF THE ERSTWHILE FCIL
VINTAGE OF PLANTS MISMATCH OF CAPACITIES

OBSOLESCENCES OF TECHNOLOGY
LACK OF CAPITAL INPUT AT APPROPRIATE TIME HUGE UNDER-UTILISED INFRASTRUCTURE FLIGHT OF TALENT (DUE TO NON-REVISION OF WAGES) HEAVY INTEREST BURDEN ON LONG-TERM GoI LOAN

LACK OF ADEQUATE FUNDS FOR WORKING CAPITAL

PHENOMENAL INCREASE IN COST OF FEED STOCK AND QUALITY DETORIATION OF INPUT COAL

CHRONICLES OF FCILS REFERENCES BEFORE BIFR

APR 1992 NOV 1992 MAR 1994 JAN 1995 JUL 1996 NOV 1996 FEB 1997 NOV 2001 JAN 2002 FCIL REFERED TO BIFR FCIL DECLARED SICK COMPANY UNDER SICA, 1985 ICICI APPOINTED OPERATING AGENGY (OA) OA SUBMITTED REVIVAL SCHEME FOR FCIL OA APPOINTED FEDO FOR TECHNICAL FEASIBILITY FEDO SUBMITTED TECHNICAL FEASIBILITY REPORT COMMITTEE OF SECRETARIES, FORMED FOR TECHNICAL APPRISAL, SUGGESTED REVIVAL OF SINDRI FERTILIZER FACTORY BIFR RECOMMENDED WINDING-UP OF FCIL AS NO WORKABLE REVIVAL PROPOSAL WAS AVAILABLE AAIFR SUGGESTED HIVING OF JODHPUR MINING ORGANISATION (A PROFIT CENTRE) AND SINDRI FERTILIZER FACTORY (A TECHNICALLY VIABLE UNIT) INTO SEPERATE COMPANIES AND LIQUIDATION OF OTHER UNITS AS A REASONABLE COURSE
(Contd.)

CHRONICLES OF FCILS REFERENCES BEFORE BIFR

(Contd.)

APR 2002 JUL 2002 SEP 2002

NOV 2002 APR 2004 MAY 2004

AAIFR CONFIRMED BIFRS ORDER FOR WINDIG UP IN ABSENCE OF ANY PROPOSAL FROM PROMOTER (GoI) GoI/DoF ORDERED CLOSURE OF RAMAGUNDAM, TALCHER, GORAKHPUR UNITS AND KORBA DIVISION AND HIVING OFF JODHPUR MINING (JMO) GoI/DoF ORDERED CLOSURE OF SINDRI UNIT ALONG WITH OTHER UNITS AND DECIDED TO DISPOSE ASSETS AS PER SICA,1985 AND GRANT VOLUNTARY SEPERATION (VSS) TO EMPLOYEES OF ALL UNITS EXCEPT JODHPUR MINING ORGANISATION (JMO) DELHI HIGH COURT REMITTED THE CASE BACK TO BIFR BIFR APPROVED DEMERGER OF JMO AS FCI ARAVALI GYPSUM & MINERAL INDIA LIMITED (FAGMIL) AND RECEMMENDED WINDING UP OF FCIL IN MAY 2004 DELHI HIGH COURT REGISTERED THE CASE FOR APPOINTMENT OF LIQUIDATOR ON REFERENCE FROM BIFR.NEXT HEARING IN AUGUST 2006

DEMAND-SUPPLY GAP FOR UREA

YEAR DEMAND ______ (ACTUAL/PROJECTED) (ACTUAL/ESTIMATED) (ACTUAL/ESTIMATE) 1960-61 14 12 (-) 2 1970-71 1178 1096 (-) 78 1980-81 6045 3348 (-)2661 1990-91 14077 12836 (-)2661 2000-01 19187 19624 (-) 473 2001-02 19917 19003 (-) 914 2002-03 18668 18665 (-) 3 2006-07 22324+ 21162# (-)1162 2007-08 23128+ 21162# (-)1966 2008-09 23961+ 21162# (-)2799 2011-12 26642+ 21162# (-)5482 + PROJECTED DEMAND IS BASED ON COMPOUND ANNUAL RATE OF GROWTH (CARG) APPROACH # IF NEW CAPACITIES ARE NOT CREATED IN 10TH & 11TH PLAN (000 TONNES OF MATERIAL) SUPPLY GAP

SINDRI - STRENGTH
FIRST CENTRAL PUBLIC SECTOR FACTORY IN INDIA, PROJECT
CONCEIVED IN 1944 LOCATED IN COAL BELT ON RIVER DAMODAR FREE HOLD LAND FREE FROM ACQUISITION / REHABILITATION TOTALLY DEVELOPED AREA, WELL CONNECTED WITH RAIL AND ROAD AVAILABILITY OF COAL BED METHANE IN VICINITY AVAILBILITY OF HUGE INFRASTRUCTURE WITH ALL AMENITIES AND FACILITIES PROPOSED NATURAL GAS PIPELINE OF GAIL TO PASS AT 25 KM FROM FACTORY AREA HUGE CAPTIVE MARKET IN THE STATES OF JHARKHAND, BIHAR, ORISSA AND WEST BENGAL IN-CAMPUS LOCATION OF PDIL AND BIT PROVIDING TECHNICAL AND TECNOLOGICAL ADVANTAGE SINDRI FERTILIZER INFASTRUCTURE FACILITY EXTENDED TO GOVERNMENT/ PRIVATE ORGANISATIONS, VIZ., PDIL, SAIL, BCCL, BSNL, BIT, ACC, BANKS, POST, POLICE, ETC

THE PDILS RECOMMENDATION

FOR QUICK START/MEDIUM TERM START OPTION (REPORT SUBMITTED IN MARCH 2005)

PROJECT CAPITAL COST (Rs. Crores)

QUICK-START OPTION MEDIUM TERM OPTION 169.26 386.95

DEBT-EQUITY RATIO
PROFIT (Rs. Crores) QUICK-START OPTION MEDIUM TERM OPTION

1:1

(-) 5.61 (+) 16.83

ON INCORPORATING PRESENT FINANCIAL STATUS OF THE UNIT, THE ABOVE REVIVAL OPTIONS BECOME UNVIABLE

SINDRI - STRENGTH
FIRST CENTRAL PUBLIC SECTOR FACTORY IN INDIA; PROJECT CONCEIVED IN 1944 LOCATED IN COAL BELT ON RIVER DAMODAR FREE HOLD LAND FREE FROM HASSLE OF ACQUISITION & REHABILITATION TOTALLY DEVELOPED AREA, WELL CONNECTED WITH RAIL AND ROAD AVAILABILITY OF COAL BED METHANE (CBM) IN VICINITY; COMMERCIAL EXPLOITATION LIKELY TO START IN 2008-09 AVAILBILITY OF HUGE INFRASTRUCTURE WITH ALL AMENITIES AND FACILITIES PROPOSED HALDIA JAGDISHPUR NATURAL GAS PIPELINE (HJPL) OF GAIL TO PASS AT AROUND 25 KM FROM FACTORY AREA; PROJECT LIKELY TO BE OPERATIONAL IN 2009-10 HUGE CAPTIVE MARKET FOR FERTILIZERS IN THE STATES OF JHARKHAND, BIHAR, ORISSA AND WEST BENGAL IN-CAMPUS LOCATION OF PDIL AND BIT PROVIDING TECHNICAL AND TECNOLOGICAL ADVANTAGE SINDRI FERTILIZER INFASTRUCTURE FACILITY EXTENDED TO GOVERNMENT/ PRIVATE ORGANISATIONS, VIZ., PDIL, SAIL, BCCL, BSNL, BIT, ACC, BANKS, POST, POLICE, ETC

ALTERNATE FEASIBLE PROSPECTS

POWER PLANT OF LARGE SIZE (1000 MW)
LOCATION OF COAL AT ARMS LENGTH EXISTING JHARIA/ UNTAPPED MUKUNDA AND OTHER FIELDS

COKE OVEN & SPONGE IRON COMPLEX WITH CAPTIVE CO GENERATION

VIABLE EVEN BY BLENDING WITH WASHED/IMPORTED COAL AND IRON ORES AND OTHER INTERMEDIATES AVAILABLE IN STATE

COAL WASHERY FOR SUPPLY OF LOW ASH COAL TO POWER PLANTS

PIT HEAD WASHERY TO MAKE LOGISTIC AND TRANSPORT COST CHEAPER

HYDEL/THERMAL POWER PLANT OF SMALL SIZE (500 MW) WITH ADDED IRRIGATION FACILITY FROM GOWAI IN BHOJUDIH (BOKARO DIST)
BARRAGE WITH NEARLY 500 ACRES LAND MAY BE USED AFTER RENOVATION

COAL/CBM BASED LARGE POWER-FERTILIER-PETROCHEMICAL

FREE VACANT LAND MAY EVEN ACCOMMODATE IN-SITU/OVERGROUND COAL GASIFICATION AND REQUIREMENT OF SATELITE TOWNSHIP FOR DHANBAD

COAL LIQUIFACTION FOR MANUFACTURE OF PETROL, DIESEL ETC. SMALL SCALE ELECT/MECH MACINERIES AND SWITCH GEARS
WATER AND LAND AVAILABLE FOR SUCH INDUSTRIES

INDEPENDENT GAINFUL UTILISATION OF 205 BED SPECILITY HOSPITAL, LANDING GROUND, WORKSHOPS, TRAINING INFRASTRUCTURES

THANK YOU