Site Selection Exercise

The location of the plant is a crucial parameter that can affect the profitability of the project and scope for future expansion

6.1Factors for Site Selection:

6.11 Nation’s Interest

6.12 Profitability of the project

6.13 Productivity of the project

6.11 Nation’s Interest

6.111 Dispersal of Industries

India is an industrially diverse country. Certain pockets are industrially well developed and some are backward. Location of the plant in an industrially prosperous region may be advantageous but may add to tremendous pressure on civic amenities like water, power in that region. Therefore, dispersal of industries is important.

6.12Profitability of project

6.121 Raw Material Availability

Transportation and handling are the major contributors to cost of the raw materials. Thus a site must be selected such that the raw materials are available in the vicinity.

The raw materials for the selected process are ethylene oxide and carbon dioxide. Hence proximity to a petrochemical complex is preferable. In India the major producers of ethylene oxide are

·         Reliance Industries Limited, Hazira (Gujarat)

·          NOCIL, Thane-Belapur (Maharashtra)

·         India Glycols Limited, Kashipur (Uttarpradesh)

 6.122. Market for Finished Product

The final product ethylene carbonate has a good market potential in India as well as abroad. So proximity to a port is essential.

6.123 Land

 Keeping in mind the size and the capacity of the plant, the cost of land required is not going to play an important role in the actual selection of the site.

6.124 Soil Survey

This includes the type of soil, its bearing capacity, identification of seismic zone and height of water table. Neglect of this parameter may lead to mechanical breakdown of the plant.  

 6.125 Climatic Conditions

The necessary climatic data like average rainfall, minimum and maximum temperature, frequency of cyclones and hurricanes should be considered while selecting a site.

 6.126 Environmental Issues

Present state of environment, proximity to archaeological/historical site, density of population are some factors that come under environmental issues.

 6.127 Supports from State Government

This factor is also very important especially in a country like India where red tapism and corruption are rampant. This can play a very important role in deciding the speed with which the work is going to progress.

6.128 Fabrication facilities

The fabrication facilities in the site and nearby areas are also important to speed up the plant construction.

6.13 Productivity of the Project:

6.131 Source of Water

In the selected process there is, as such no consumption of water (process water). Utilities, maintenance, etc consume water. The site should have a continuous supply of water either from a tube well or river or sea or state industrial development corporation.

6.132 Power

The continuous supply of power is essential for the productivity of the plant. Power can be obtained from the state electricity grid.

 6.133 Labour

The kind of labour available is going to play a very important role because finally the work has to be done by the labourer and it is his attitude that is going to matter.

6.134 Infrastructure

The site should be accessible by road, rail and air. Not much amount can be afforded for building infrastructure in this project. Existence of a good infrastructure is important.

       Based on all the factors mentioned above, three sites are proposed.

A) Hazira   B) Thane-Belapur C) Kashipur

The above sites are evaluated on a scale of 10.