

Uhde India Limited

DOC No. : 29040-PI-UFR-0016

Rev. : R0

Page : 2

1.0 INTRODUCTION:

Site selection for a plant, keeping in view the various Corporate objectives of the Companyrequires careful considerations of the numerous factors that would go into making the plantcontribute towards its working environment and make it into a technologically andeconomically viable unit. Decisions are strategic, long-term and non repetitive in nature. Acertain amount of imaginative planning for the future is also called for at the time of finaldecision about the site to be selected.

Generally sites for a new plant will be allocated according to the general industrialdevelopment policies of Govt. of India. The various factors which need to be considered forsite selection are briefly touched upon in the foregoing paragraphs.

2.0 LOCATION FACTOR:

The location factor deserves careful attention simply because of its long term consequences.Any mistake in selection of a proper location could prove to be costly. Improper location couldbe a constant source of higher cost, higher investment, difficult marketing and transportation,dissatisfied and frustrated employees and consumers, low availability of high caliberprofessionals, frequent interruptions of production and abnormal wastage. Once a plant is setup at a particular location, it is very difficult to shift later to a better location because ofnumerous economic, political and sociological reasons. Social reasons could includeemployee welfare, employment opportunities. Political reasons could be due to pursuance ofa policy of regional development and planning especially in a developing country like India.

The location factor also requires that the following facilities are taken into consideration.

District Classification

To ensure that the license is obtained for locating the plant in a no-industry district.

Transportation Facilities

The raw materials and end products require to have uninterrupted receipt and dispatchfacilities through good road connections, proper linking with ports and railheads. Possibility ofan in-plant rail siding has to be looked into depending on the amount of raw materials andproducts to be handled.

Connection with Airports is important mainly from the point of view of easy movement ofprofessionals. This is all the more important if foreign collaborations are involved in the plant.

Manpower Availability

Local availability of skilled and semi skilled manpower will add to the efficient running of theplant.

Industrial Infrastructure:

This is important in view of the fact that all supporting services required for the successfuloperation of the plant like maintenance and repair of various machines and other items,availability of workshops, plant services, etc. may not be feasible to be generated withinfactory complex. Availability of communication facilities is also an important part of theinfrastructure. An existing vibrant infrastructure in the vicinity is much preferred than the needbased infrastructure getting developed after the plant commissioning.



Uhde India Limited

DOC No. : 29040-PI-UFR-0016

Rev. : R0

Page : 3

Community Infrastructure:

Now-a-days, generally, as the plant would be operating on a sophisticated technology, itwould be essential to attract qualified professionals. This would involve ensuring a goodquality living which in turn would depend on availability of good schools and colleges, medicalservices, good communication facilities, cultural and recreational opportunities, etc. Unless agood community infrastructure is available, it is found that attracting qualified professionals inrather difficult.

Availability of Raw Water:

It is recommended that the plant be located in close proximity to a perennial source of waterof adequate quantity which will meet the plant requirements and the other non plantrequirements. Drawing the water by boring deep tube wells without the provision of aperennial source is not preferable because the ground water may be depleted at a future date.

In summary, the Natural Water Table and flooding history should be duly considered.

Effluent Disposal:

The natural drainage facility for disposal of Effluent should be duly examined.

It would be economically advantageous if an effluent disposal facility after treatment, whichcan handle the produced quantity of effluent is readily available. Otherwise, transporting theeffluent by a drainage, to a safe disposal area which is far away has to tackle the legal andecological problems.

Availability of Power:

Stable and uninterrupted power of required magnitude, without fluctuations in voltage andfrequency is important for the successful operation of the plant.

Nearness to the available power facility will reduce the plant cost.

Wind and Seismic Factor:

Prevailing wind direction, Maximum Wind Speed and seismic history of the site should be dulyconsidered.

Availability of Industrial Gas:

Industrial gas is now available at various places in our country from the Gas pipeline network.Industrial gas is the preferred source of energy as it is more efficient and contributes very littletowards industrial pollution. Now-a-days, for almost all plants, uninterrupted power supply is ofgreat importance and a gas based captive steam power generation unit will be veryadvantageous.

Accordingly, nearness of the site to a gas distribution network will be of great advantage inview of long term planning and future expansions.



Uhde India Limited

DOC No. : 29040-PI-UFR-0016

Rev. : R0

Page : 4

3.0 SITE SIZE AND NATURE:

The plot area and the topography should suit the plant requirements along with requiredtownship facilities and future expansions. The grade level of the entire area should bepreferably almost same. If the plot area is not flat, it has to be levelled in the most economicway to suit the plant. The degree of required levelling and filling should be looked into.

Load bearing characteristics and acidity of the soil plays an important role in site selection.Natural soil has got more load-bearing capacity as compared to filled soil. Consequently, thecost of the civil foundation will be less in natural soil because piling to support heavy loadsmay not be required whereas in case of filled soil piling may be required.

4.0 ECOLOGY AND POLLUTION:

Now-a-days, there is a great deal of awareness towards maintenance of natural ecologicalbalance. Regarding the effect of pollution from specific type of plants, social obligations are tobe met. The nature of the site selected should preferably have some advantages to meetthese requirements.

5.0 QUANTITATIVE ANALYSIS:

The above factors are considered at the time of site selection and the data collected areanalyzed, generally by the weight-cum-rating method, in order to finalize recommendation ofthe potential site.

In the weight cum rating method, variable weights are assigned to each factor. Then each siteis evaluated on a 0-5 sliding scale for each of these factors. The assignment of points foreach site for each factor is obtained by multiplying the rating of the site by the weight of eachfactor.

The overall site rating is then obtained as the sum of the assigned points for each site.

The recommendation will be for the site having maximum overall rating.



Uhde India Limited

DOC No. : 29040-PI-UFR-0016

Rev. : R0

Page : 5

6.0 CASE STUDY

QUANTITATIVE ANALYSIS OF SITE SELECTION

Sl. No. Factor FactorWeights

Site Rating 0-5 Sliding scale

FATEHPUR KHED SEHUR

1. Location 5

2. IndustrialInfrastructure

4

3. CommunityInfrastructure

4

4. Availability of water 4

5. Effluent disposal 4

6. Availability of Power 4

7. Availability of Gas 2

8. Site size and Nature 3

9. Ecology andPollution

2

FATEHPUR

1. No Industry District.2. Adjacent to N.H.23. 2 to 3 km from Delhi Howrah Broad guage line4. 52 km from Kanpur5. Population of 1 lakh6. Semi skilled and skilled labour available7. Industrial area is under development8. Medium sized industrial units are at the border of Kanpur9. Bus services are frequent10. Some express Trains also stop at FATEHPUR11. A Govt. hospital with 200 beds and several private nursing homes are available12. Schooling facilities are available, No colleges - One ITI is available13. One small bank is available14. Communication facilities are meager15. One housing complex is under construction so also a shopping complex.16. Ganga river is 12 km away17. Potable water is available at 150 ft. depth18. No natural drain for discharge of effluent, also a safe disposal area could not be located

nearby.19. 132 K V Sub station is near to site and requisite quantity of power is available20. Industrial gas is not available



Uhde India Limited

DOC No. : 29040-PI-UFR-0016

Rev. : R0

Page : 6

21. Adequate area of plot is available for the plant. Rail siding is not possible withoutadditional land acquisition.

22. Min. & Max. temp. are 5C and 43 C respectively with an average rainfall of about 800mm.

23. No record of seismic activity.24. Resistance from ecology and pollution control group is expected.

KHED

1. On Bombay Goa N.H. in an existing industrial belt.2. Water supply already existing from Vashishti river and the capacity will be increased.3. Electrical Sub station to supply power is 5.5 km.away.4. Nearest town is 15 km away.5. Airport at Ratnagiri is at 95 km.distance.6. Effluent disposal - Can be discharged to existing facility.7. Agricultural, non irrigated land. Some places are hilly and rocky.8. Min & Max.temp.12 C and 45 C respectively.9. Annual rain fall 3750 mm.10. Semi skilled labour available from town.11. Plot area is adequate.12. Govt. and Private hospitals are available.13. Educational facilities, such as Schools, Arts and Science Colleges, Diploma Institutes

are available.14. One Cinema hall is existing.15. There is a local market at Town.

SEHUR

1. On state highway NH 23 from Bhopal to Hoshangabad - Water source is Narmada river2 km away from site. Pipe line has to be laid and so also a pumping station.

2. Effluent disposal can be made into a natural nala which goes to Narmada river after 8-10 km.

3. No power feeder at site. Power has to be brought from Hoshangabad 7 km.away fromsite.

4. Nearest railway station is 10 km.away from site - Nearest town is 1 km away from site.5. Nearest airport Bhopal is 70 km.away.,6. Population at the nearest village is 10,000.7. Land is partly agricultural and flat.8. Min. & Max.temp 0 C and 46 C respectively.9. Annual rain fall 1245 mm.10. Seismic zone.11. Type of soil is Black Cotton soil.12. Semi skilled labour is available from Hoshangabad.13. Adequate area of land is available.14. Two industrtial small units are existing in the neighborhood.15. A District Hospital and Primary Health Centre are existing at nearby town.16. Schools and Colleges at Hoshangabad.17. cinema halls are existing at nearby town.18. Market available at the nearby village.19. Nearest port is at Bombay.

Project Site Selection

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