As a part of integrating its Petrochemicals value chain, Indian Oil Corporation Ltd jointly with JV partner intends to set up a Textile Project in the eastern region of India in order to provide for rapid growth of investment in the textile sector. In view of the increasing demand of textile and polyester in the region, there would be a need to set up continuous polymerization (CP) and downstream units such as PSF, POY/DTY & FDY. The fibre/yarn thus produced from the joint initiative shall be used as a feed stock and supplied to downstream industries for making various types of polyester textiles/apparels. This downstream industry comprising of weaving, knitting, wet processing, garmenting etc. shall be part of proposed textile projects. In order to assess the opportunity, Indian Oil has appointed Chemtex Consulting of India Private Limited to carry out a Techno-Commercial Feasibility Study of Continuous Polymerization (CP) downstream fibre/Yarn units at Eastern Region.

Indian Oil is in the process of setting up 350 KTPA Mono Ethyl Glycol (MEG) plant at Paradip Refinery in the State of Odisha. Indian Oil is also in the process of setting up 1200 KTPA PTA plant at Paradip along with 350 KTPA Mono Ethyl Glycol (MEG) plant.

MEG and PTA are the two main feedstocks for the proposed CP unit which are subsequently converted into manmade fibers/yarns. Both the feedstocks are available in the eastern region of the country and both parties intend to tap the value addition opportunity of the feedstock.

IOCL is proposing to set up a 900 TPD Continuous Polymerisation (CP) unit with downstream units of 500TPD Partially Oriented Yarn (POY)/Draw Texturized Yarn (DTY), 100 TPD Full drawn Yarn (FDY) & 300TPD Polyester Staple Fibre (PSF) .The proposed location planned is Bhadrak in Odisha.

PROPOSED PLANT CONFIGURATION

The plant configuration proposed is for

900 TPD CP producing 300 TPD PSF (2 x 150 TPD Lines), 500 TPD POY and all POY converted to DTY & 100 TPD FDY.

A nominal capacity of Chipper (1 x 6 ton/hr for 600TPD and 2 x 6tons per hour for 900 TPD) is included to convert the polymer in chips in case of downstream breakdown / changeover / maintenance or demand for both cases.

PROJECT DESCRIPTION

In view of the large demand of Textiles and Apparels in the eastern regions and its neighbouring countries, Textiles Projects are being envisaged in the state of Odisha. Bihar, Jharkhand and West Bengal under the Govt Initiatives. The planned location of these textile Projects are Bhadrak in Odisha. Each of these textiles projects will comprise of Continuous Polymerisation (CP) units, Fibre/Yarn manufacturing units in one block and associated downstream units in another block. The CP with downstream POY/DTY, FDY project process is as below:

The proposed polyester plant project will be built in Bhadrak Odisha, India with a total area of approximately 75 acres required for 900 TPD.

The polyester plant shall produce 900TPD of polyester polymer of textile grade. 500TPD will be fed into POY spinning,

300 TPD will be fed into PSF and 100 TPD will be fed to FDY in case of 900TPD. All POY will be converted into DTY. The project includes not only the main process units, but also the utility (water, electricity, steam, gas, etc.), civil work and other relative auxiliary facilities

FEEDSTOCK REQUIREMENT

Below table shows the consumption of major Feed Stock per ton of final product:

Consumption per ton

PTA, kg 858 MEG, kg 333 Polymer kg per ton <1,025

Finish Oil kg per ton for PSF 2.5 Finish Oil kg per ton for POY/FDY 5.0

Finish Oil kg per ton for DTY 30

Antimony Trioxide (Sb2O3) kg per ton

0.3

TiO2 kg per ton 3

DEG kg per ton 4

UTILITIES AND OFFSITES

The utilities envisaged are Steam Boiler, HTM Vaporizer, Nitrogen Generation unit, Air Compressor units, Chiller units, Cooling tower, WTP, ETP, Fire water system. The Offsites include Tank farm for Diesel Storage, MEG, DEG, Impure

EG and HTF.

SL NO UTILITY for 900 TPD UNIT Requirement Configuration

1 STEAM - 24 kg/cm2g and 4.5 kg/cm2g tph 20

1W x 10T Boiler – 24kg/cm2g 1W x 10T Boiler – 4.5kg/cm2g 1S x 10T Boiler – 24kg/cm2g ( common standby)

2 LLP COMPRESSED AIR - 4.5 kg/cm2g Nm3/h 70000

3W x 24,000Nm3/h 1S x 24,000Nm3/h

3 LP COMPRESSED AIR - 7.0 kg/cm2g Nm3/h 34000

3W x 11,500Nm3/h 1S x 11,500Nm3/h (Consumption for Instrument Air and PSA Nitrogen Plants Included in LP Compressor Sizing)

4 HP COMPRESSED AIR - 14 kg/cm2g Nm3/h 25000

3W x 8,500Nm3/h 1S x 8,500Nm3/h

5 INSTRUMENT AIR - 7.0 kg/cm2g Nm3/h 6500 Consumption for Instrument Air Included in LP Compressor Sizing

6 NITROGEN - < 1% ppm O2 Nm3/h 400 2 x 200Nm3/h PSA Plants

7 NITROGEN - 20 ppm O2 Nm3/h 10 1 x 10Nm3/h PSA Plant

8 COOLING WATER m3/h 14400 4 Cells Working X 3600m3/h 1 Cell Standby x 3600m3/h

9 CHILLED WATER TR 14000 12W x 1100TR – VCC Chiller

1S x 1100TR – VCC Chiller 1W x 940TR – VAM Chiller

10 DM WATER m3/h 40

11 INDUSTRIAL WATER m3/h 300

SL NO UTILITY for 900 TPD UNIT Requirement Configuration

12 POTABLE WATER m3/h 3

13 DIESEL kg/h 3671

14 HTF m kcal/h 24 2W x 12 mkcal/h 1S x 12 mkcal/h

POWER

The power required during construction shall be supplied by Industrial Development Authority through respective state electricity boards in Odisha

Total unit wise Operating electrical load for the TEXTILE UNITS is given below:

1250 KVA Diesel generator is considered for emergency power and shall be used for Process Critical loads (CP & Spinning), Emergency lighting, Fire Alarm, Firefighting, Telephone systems & Instrument UPS loads based on process requirements.

SL NO

TEXTILE UNIT

OPERATING LOAD (900 TPD) (kWh)

1 CP 1700

2 PSF 5600

3 POY 7845

4 FDY 1354

5 DTY 15500

6 UTILITY 15240

TOTAL 47239

TECHNICAL ASSESSMENT

A typical ‘textile grade’ Polyester plant consists of following main sections:

Tank farm – for unloading and storage of liquids (including MEG).

Powder handling system – PTA, a major raw material which is in powder form. PTA is unloaded using a chain type conveyor from bags (or containers) and sent to the main process building.

Continuous Polymerization process (CP) – which is used to make polymer melt.

A side stream chip making facility for production of small amounts of textile grade chips. This facility is necessary for maintaining constant flow in CP process.

Filament yarn (POY / DTY and FDY spinning machines).

Staple fiber spinning (PSF), draw lines, cutting and baling.

Auxiliary facilities such as laboratory, maintenance, cleaning systems (for spin packs)

HTM heating systems (vaporizers) for CP process and spinning plant.

Utilities and infrastructure.

CONTINUOUS POLYMERIZATION

The CP process consists of (a) Slurry Preparation, (b) Esterification and (c) Polymerization. The process runs as a continuous process. Polyester plants worldwide utilize two basic types of technologies:

A low residence time process (i.e. INVISTA process) that operates at a higher temperature but finishes the reaction in 4 hours.

A high residence time process (offered by many suppliers) that operates at a slightly lower temperature but requires 8 hours to finish the reaction.

The description of INVISTA process system considered for this Feasibility Study are as follows:

The proprietary designed PTA esterification system provides high quality oligomer to the polymerization system. The reactor utilizes natural recirculation instead of a mechanical agitator, thus reducing equipment and maintenance. The low hold-up time in the reactor minimizes color development and other undesirable side reactions such as DEG formation. The process is fully instrumented for control of all variables and finished polymer properties. The Torsional Oscillatory Viscometer (TOV), an Invista proprietary designed instrument, is provided in the polymer transfer line to monitor and control polymer viscosity and degree of polymerization from the CP. Feedback control from the TOV signal adjusts the pressure in the Finisher vessel to maintain precise control of polymer viscosity. The esterification vessel and the Up-Flow Pre-Polymerizer (UFPP) vessel contain no mechanical agitation. Thus the potential for mechanical failures which might cause quality problems or process shutdowns is reduced. The third vessel (Finisher) is a specially designed, HTF heated, horizontal cylindrical vessel. The full length agitator is a proprietary designed cage-type agitator that generates high surface area in the polymer. The vessel is operated at high vacuum that removes more EG, thereby increasing the polymer viscosity. The entire polymer system is specifically designed to eliminate dead spots and cold spots ensuring that no polymer degradation takes place. For example, the unique cage type Finisher agitator has no central shaft (where polymer could build up) and every internal surface of the Finisher vessel is continuously wiped, replenishing wall polymer with fresh polymer and again preventing any build up on the walls. Extended continuous operation increases capacity and reduces maintenance costs. Normal operating life is greater than 24 months and some lines have frequently run 48 months without shutdowns. Shutdown time is minimized because mechanical cleaning and opening of the vessels is rarely required. Reduced glycol consumption is accomplished by reuse of the process off-glycol directly without further purification, thus reducing operating costs and initial capital expenditures for EG refining. The entire Invista continuous polymerization process has very low hold-up time (less than 4 hours) which enables quick product transitions for luster and polymer changes. The short hold-up time minimizes the development of undesirable side reactions and polymer degradation products. Directly coupled polymerization to spinning reduces capital and operation cost by eliminating the need for intermediate chip making, handling and remelting facilities. The coupled CP-spin process also provides maximum polymer uniformity delivered to the spinning machines.

STAPLE FIBER The staple fiber process is used for making a fiber that is ultimately cut into small lengths (typically 30 mm) for blending with other natural fibers such as cotton, wool or viscose. The process typically consists of fiber spinning (to form the fiber), drawing (to impart strength), drying (to remove the moisture), cutting and finally baling.

Several companies (including INVISTA) offer technology for production of staple fiber. The competitiveness for these plants is in having optimum CAPEX, system reliability and operating cost. Most technologies compete on an equal platform and none of the technologies have any specific advantages over the others. POY and FDY SPINNING

The POY and FDY spinning machines are commercially sold by companies such as Barmag, TMT, Beijing Chongli and other Chinese companies. Typically machines from Barmag and TMT are considered as highly reliable and produce high quality POY and FDY products.

The POY and FDY products are used for production of 100% polyester fabrics. The FDY product has a much higher strength than POY (as the yarn is fully drawn). The POY yarn is sent to DTY machines for further strengthening of the yarn prior to processing in knitting or weaving of the fabric.

The machine typically consist of modular construction and each machine have 36 positions.

The production rate is highly dependent on the denier (thickness) produced. From POY it is further send for texturizing in DTY units.

A typical POY (or FDY) & DTY process is depicted below:

Filament Spinning – Partially Oriented Yarn (POY) Spinning The molten polymer from the CP Unit with qualified Intrinsic Viscosity (IV), temperature, pressure is delivered to the spinning heads through a specially designed Dowtherm heated manifold, which insures position to position polymer uniformity. The melt is supplied to the set temperature, goes to the spin pack through spinning metering pump.

There are filter medium in spin pack, the melt flows through the filter medium with smooth pressure and is extruded out of the spinneret.

The filaments from the spinnerets are quenched and cooled by precisely controlled, low turbulence conditioned air in a quench chamber. The quenched filaments pass through a metered finish system where specially formulated finish oil is applied to the yarn surface for subsequent processing. - Take Up The filament enters the take-up machine from the duct under the quenching, passes through compact feeding device, including feeding, gathering, cutting in one, then goes through 2 godets with plasma coated and is winded. Waste yarns from the suction jets are conveyed pneumatically to collection boxes. The spun yarn packages are pneumatically doffed, inspected and placed on carries for transport to intermediate storage.

- Yarn Storage The POY yarn is stored under regulated conditions to insure complete stabilization of the yarn properties and maximum final product uniformity. Then send to the DTY Unit for further process.

Filament Spinning- Draw Texturing Yarn (DTY)

POY from POY Unit is fed via the 1st feed unit and simultaneously drawn by the 2nd feed unit. At the same time twist is being inserted via friction aggregates located between 1st and 2nd feed unit. The twist moves backward in direction of 1st feed unit into the upper heater and cooling, where the yarn is being thermoformed and fixated in its twisted form. To lower the internal stress of the already crimpy yarn and to adjust elasticity and tenacity, a further heat set process between 2nd and 3rd feed unit helps relax the yarn. After the 3rd feed unit the yarn is wounded up in packages suitable for further downstream processes like weaving and knitting. The below sketch demonstrates simply the draw texturing process.

BHADRAK SITE

The site is located in Bhandaripokhari block which is 18 km from Bhadrak and 125 km from Bhubaneshwar and well connected by road in Odisha state. Dhamra port & Paradip port are the nearest ports. Power for Construction & plant requirements shall be provided by IDCO & state electricity boards. Substation is available & is located 18 KMS from Site. Man power –Unskilled & Semi-Skilled is available from Bhadrak & surrounding areas. However skilled man power can be sourced from Bhadrak or Bhubaneswar towns.

RAW MATERIAL SPECIFICATION & SUPPLIES

The Raw materials for the project will be PTA (Purified Terephthalic acid) and MEG (Mono Ethylene Glycol). The price to be considered is provided by Indian Oil and MCPI. The supplies will be provided by Indian Oil and MCPI respectively for PTA & MEG as per the Specifications.

Purified Terephthalic Acid

Specification Recommended Limits

Acid Value, mg KOH/g 673-677

Ash, ppm 15 Max.

Iron, ppm 2 Max.

Total Metals, ppm 10 Max.

Moisture, % by Weight 0.5 Max.

APHA Color (5% DMF Solution) 10 Max.

4-Carboxylbenzaldehyde, ppm 25 Max.

Para-toluic Acid, ppm 150 Max.

Specification Recommended Limits

Retained on 250 Micron Sieve, % 6 Max

Passing 45 Micron Sieve, % 15-36

MEG (mono Ethylene Glycol)

Specification Recommended Limits

Specific Gravity Max.1.1156

Acidity wt %(as acetic acid) Max.0.005

Color APHA Max.5

Suspended Matter None

Ash g/100 ml Max. 0.005

Water wt% Max. 0.1

Odor Mild

Iron ppm Max. 0.1

Chlorides, ppm Max. 0.2

UV Trans., % T

@ 220 nanometers Min. 70

@ 275 nanometers Min. 95

@ 350 nanometers Min. 98

Distillation Range °C 196-198

Initial Boil Point, C Min.196

Dry Point, C Max. 200

Raw Material Consumption Below table shows the consumption of raw materials per ton of final product:

Consumption per ton

PTA, kg 858 MEG, kg 333 Polymer kg per ton <1,025

Finish Oil kg per ton for PSF 2.5 Finish Oil kg per ton for POY/FDY 5.0

Finish Oil kg per ton for DTY 30

Antimony Trioxide (Sb2O3) kg per ton 0.3

TiO2 kg per ton 3 DEG kg per ton 4

11.1. PRODUCT SPECIFICATION

The Polymer from CP unit will have following characteristics:

Property Units Semi-dull polymer

Intrinsic Viscosity (IV), ASTM dl/g 0.64 + 0.008

COOH Meq. / kg <35

Property Units Semi-dull polymer

DEG wt. % 1.4 max.

TiO2 wt. % 0.3 + 0.03

Melting point o C > 258 (for reference only)

Color L Hunterlab >75

Color b Hunterlab <3.5

Particle Count, >10 microns 2 per 5 mg

Moisture wt. % 0.2 max.

Polyester Staple Fiber (PSF)

PARTIALLY ORIENTED YARN (POY)

Machine Machine-P1 Machine-P2 Machine-P3

Yarn Type 83dt-72f 165dt-144f 330dt-96f

Denier POY Dtex 133 265 528

After Draw Dtex 83 165 330

Process - Eco-ORCA Eco-ORCA Eco-ORCA

Spinneret × end φ85 × 12 φ85 × 12 φ105 × 12

Pack Type - Single Single Single

QS Type - iQC ZigZag iQC ZigZag Cross Flow

Cross section of Yarn - Round Round Round

Chip Type - Semi-dull Semi-dull Semi-dull

PARAMETER

UNIT 1.2 dpf Cotton type

1.4 dpf Cotton type

**CV Titer % 3.0 3.0

**Tenacity at break g/den 6.8 0.2 6.7 0.2

**CV Tenacity (Creel Stock) % 4.0 4.0

**T10 g/den 4.9 4.7

**Elongation at break % 17.5 18

CV Elongation (Creel Stock) % 8.0 8.0

Hot Air Shrinkage (@ 180 oC) % 6.0 6.0

Crimp Number per inch No. 11 2 11 2

Crimp Stability % 70 70

Crimp Removal % 16.5 16.5

Over-length fiber % 0.02 0.02

Moisture % 0.4 0.4

Dyeability % 100 6 100 6

Deep dyeing defects % 0.02 0.02

Multi Length % % 0.01 0.01

Package weight kg/Package 15 15 15

Winder speed mpm 2,600 2,700 3,300

Titer dtex Ave dtex M1±2.0 M1±4.0 M1±8.0

CVB % ≦ 1.0 ≦ 1.0 ≦ 1.0

Tenacity Ave cN/dtex ≧2.2 ≧2.2 ≧2.2

CVB % ≦ 4.5 ≦ 4.5 ≦ 4.5

Elongation Ave % M2±3.0 M2±3.0 M2±3.0

CVB % ≦ 4.5 ≦ 4.5 ≦ 4.5

OPU Ave % M3±0.05 M3±0.05 M3±0.05

U%(CV%) Ave % ≦1.0 ≦1.0 ≦1.2

DRAW TEXTURIZED YARN (DTY)

Sl. No. Item Unit A Class of Products

Quality Guarantee for F5/144 &F5/36

1 Titer CV% CV% 1.5

2 Tenacity (cN/dtex) g/den ≥ 3.7

3 Tenacity (CV%) CV% ≤8.0

4 Elongation % 18-28

5 Elongation CV% CV% ≤ 10

6 Crimp rate % ±4

7 Crimp stability % ≥70.0

8 Shrinkage in boiling water % ±0.8

9 Dye ability (grey card) Grade ≥4

TEXTILE CHIP PROPERTIES

The following tabulation shows nominal specification for “A” grade textile grade chips produced from the CP

PARAMETER VALUE

I.V.(1) 0.64

COOH end groups, meq/ kg 40

DEG – Total, wt% 1.2± 0.10

TiO2—Semi-dull, wt% 0.3± 0.03

Color (Hunterlab)-Polymer (chips) L B

Nominal ± 1.5 Nominal ± 1.0

Melting Point, DSC Deg C >254

Note 1: Phenol + TCE (60:40) at 25 deg C Note: IV as measured in 60:40 Phenol + TCE mixture

BY PRODUCTS & EFFLUENTS

EFFLUENTS AND EMISSIONS

Environmental protection forms an important aspect of the design of the plant. The design would vary depending on the geographical location of the plant and the allowable emissions dictated by local authorities and or clients.

ENVIRONMENTAL PROTECTION

Polyester Textile plant implies three major sources of emissions:

- Water generated from reaction of PTA and MEG as reaction ‘off-water’. This water typically contains volatile organics (VOC) and some ethylene glycol. In addition small glycol spills that can happen during routine operation, draining of filters, sampling, etc. can become sources of effluents.

- Air emissions from atmospheric tanks used for mixing additives and from glycol hot wells. These are low level emissions. A major source – high volume – of emission is the off gas from the OSC that is used to strip out organics from the reaction ‘off water’.

- Solid waste polymer that is generated during start up. Following are major methods implemented to control the quality of the liquid effluents, air emissions and solid polymer waste:

LIQUID EFFLUENTS The water generated as reaction ‘off water’ is pumped in a closed system to the Organic Stripping Column (OSC). The OSC is a packed column that uses counter current steam to strip out the low boilers from the water. The stream from the top of the column (that contains organics) is sent to the burner section of the HTM vaporizer for burning. This completely eliminates a major source of organic emission to the atmosphere. The liquid stream from the bottom of the column that would typically contain some MEG and high boilers is sent to the effluent treatment plant (OSBL facility) for BOD / COD treatment. All other liquid streams – mostly MEG – that are generated during sampling, filter drainage, small spills are collected separately and sent to the effluent treatment plant for BOD / COD treatment. The chemicals used in the Laboratory are also collected separately and pumped to the effluent treatment plant. Other than a typical BOD / COD treatment plant, which should be a common facility for CP, PSF, POY plant, no special treatments are required. The sanitary effluent is pumped to central treatment separately from the chemical wastes.

AIR EMISSIONS The Polyester plant contains several atmospheric tanks that hold the additives and MEG. Most tanks operate at ambient temperature and the maximum temperature in these tanks is 900 C. One exception is the recycle EG

tank in Esterification that would operate at about 1600C. All these tanks typically are vented to atmosphere. In certain cases, the vents on these tanks contain a chilled water vent condenser that will knock down any small air emissions. This approach shall be incorporated in the design. The relief valves installed on HTM systems (jacketed piping) pose an environmental hazard if a relief happens. The discharge from all HTM relief valves will be piped to the central HTM tank that holds a certain inventory of cold HTM. Solid Polymer Waste The sources of solid polymer waste are:

- Plant start-up or draining of polymer / oligomer

- Polymer filter change / draining

- Chemical laboratory powder spills All of these solid wastes need to be collected in designated containers and sent to land fill. Other solid wastes such as paper bags, plastic bags, cardboard packaging need to be handled as per locally acceptable practices. Fiber waste generated can either be disposed of for utilization elsewhere or recovered for reused in the process.

Expected Effluents and Emissions Below is a summary of expected amounts of effluents and emissions from the plant: TOTAL LIQUID EFFLUENT FLOW = 98 m3/h for 900 TPD & 75 m3/h for 600 TPD Avg. BOD (mg/lit) = 1000 Avg. COD (mg/lit) = 2000 WAREHOUSE

PTA will be received at plant site through FIBC (Flexible Intermediate Bulk Container) and through container. Provision have been made to store PTA is FIBC for 5 days. The Containers will be directly unloaded and dumped in PTA storage Silo. The FIBC will be handled using Fork Lifts.

Provision have been made to store Chips in FIBC for approximately 500 bags. The Chip bags will be handled by Fork Lifts. PSF ware house is planned for 21 day storage production. Storage of bales from the Baler will be picked up by automated system and will be stored in auto warehouse and subsequently will be loaded on tuck / trailer. There is no specific storage for POY / FDY. The product from POY / FDY will be moved to designate area in DTY through automated system. The DTY bobbins will be transported manually to / from DTY machines at designated spot. These bobbins will be quality checked, boxed and labeled and stored in Auto warehouse and subsequently loaded on the trucks/ trailers by automatic system. The DTY storage capacity will also be for 21 day production.

ENVIRONMENTAL CONSIDERATIONS

The process units with state of the art technology from Invista/Chemtex have complied with stringent pollution

control norms of Northern America. The process design features are already incorporated to limit the

emissions to the environment.

Pollution Prevention:

The pollution preventive steps are ensured through proper design and robust operating and

maintenance practices.

Gases:

Process design is selected to minimize the emission of harmful gases to the environment. Besides,

emergency vent gases are collected in a closed vent and flare system and burnt at high elevation to

ensure safe combustion gases and their dispersion.

Liquid Effluents:

The process design is provided to minimize the liquid effluent generation in the plant. Besides, all

unavoidable liquid effluents are collected in a closed system and provided primary and secondary

treatments in Effluent Treatment Plant (ETP) to ensure the liquid effluents discharged to the

environment are meeting Minimal National Standards (MINAS) and state pollution control norms.

Solids:

The process design is provided to minimize the solid particulate emission to the environment. Besides, any

unavoidable solid wastes such as Textile wastes, ETP sludges, tank bottom sediments and other

general wastes are collected, treated / processed and then land filled to protect the environment.

Noise:

All equipment will be selected with low noise and wherever it is inevitable to reduce noise

generation due to technological limitation, noise hoods / containment will be considered in the design and

noise level in the working environment will be limited well within the state pollution control norms.

Environment Cell:

Health, Safety and Environment (HSE) Cell as a part of technical services department with qualified and

experienced HSE personnel shall be incorporated in the organization structure. This cell shall continually

monitor, measure HSE events and take preventive and corrective actions as deemed necessary to

maintain safety of the people, the plant and environment.