The Business Bytes
TBB BUREAU
GOPALPUR/BHUBANESWAR, DEC 9, 2021
Smartchem Technologies Limited (STL), a 100% subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), on Thursday performed groundbreaking ceremony and foundation stone laying of its Technical Ammonium Nitrate (TAN) complex at Gopalpur Industrial Park in Odisha.
Odisha Chief Minister Naveen Patnaik laid the foundation of the project in presence of Smartchem Technologies Limited Chairman & Managing Director Sailesh Mehta, and Odisha Industries & Energy Minister Dibya Shankar Mishra, Ganjam Collector Vijay Amruta Kulange and other dignitaries.
The project at Tata Steel Industrial Park, Gopalpur is being built with an investment of Rs 2,200 crore and will have a capacity of 377 KTPA. The plant has the best-in-class technology from Casale, that will ensure that it is the safest plant with lowest possible emission.
The project is expected to be completed by August 2024, 50% of the engineering work is already completed and the piling work will begin from January 2022.
It is strategically located near the major mining hubs and the Gopalpur port to capture domestic demands and tap into export opportunities.
Smartchem Technologies Limited is setting up the manufacturing unit to produce 1.65 Lakh MTPA Ammonia, 2.97 Lakh MTPA Nitric Acid, 3.77 Lakh MTPA Ammonium Nitrate and 3.30 Lakh MTPA Technical Ammonium Nitrate (TAN), which will create job opportunities for over 1800 people.
Appreciating the development, the Odisha Chief Minister said, “STL is one of India’s leading manufacturers of NPK and specialty fertilizers. They are also one of the World’s leading producers of Technical Ammonium Nitrate, a product they will also be manufacturing in their facility at Gopalpur. STL is one those companies which will positively impact both the industrial as well as agricultural sector. … This will not only help STL to establish themselves as a major player in the chemical sector but will also help in the growth and development of the local area. The plant with an employment potential of 1800 will immensely benefit the local community.”
“This new investment in the midst of a pandemic also marks a new chapter in the relationship between STL and Government of Odisha and I hope it’s a glorious one. I congratulate all the authorities and staff of STL and assure you of complete facilitation support from the State Government,” he added.
Additionally, the project will contribute Rs 3,000 crore in GST and Rs 1,100 crore in Income Tax to the exchequer over 10 years. It ensures maximum recycle and reuse of effluents and use of freshwater is optimized. The emission and discharge from the plant will be one of the lowest and it features advanced NOx/N2O abatement technologies. The plant is expected to generate 4.5 MW power from the waste heat steam.
“STL is partnering Odisha to support growth in the Mining & Infrastructure Sector and this complex is the first step to accomplish our ten-year-old dream to expand operations in the Eastern Regionand come closer to our end users. Technical Ammonium Nitrate is a very important raw material that will fuel the infrastructure, economy, and development of the nation. We are looking forward to reducing our dependence on imports and the Gopalpur Industrial Park’s strategic location may help us do that very quicky in the near future. Tata SEZL can attract ancillary units and become a hub for development,” said Smartchem Technologies Limited Chairman & Managing Director Sailesh Mehta.
Technical Ammonium Nitrate, being an international commodity, this project will put Odisha on the map for international recognition. On project completion and commencement, Odisha will become a key source of TAN to the entire Eastern Belt where majority of Mining and Infrastructure growth is foreseen in future. It will generate employment for 1,500 people during the project phase and 325 people during the operation phase. It also holds the possibility of attracting investment in ancillary units like explosive manufacturers, manufacturers of LDPE/HDPE bags and liners, among others. It is part of DFPCL’s initiative to be closer to the end user and add maximum value to them, by being a solution provider and reduce the supply deficit and reduce the resultant import substitution of more than Rs. 4500 crore.
