Excess consumption of Hexane in HDPE unit Sample Clauses

Excess consumption of Hexane in HDPE unit. Hexane is used as a solvent for keeping the polymer powder in slurry form in HDPE unit. As per the design standard 9.87 Kg of Hexane was required for producing one MT HDPE. Audit observed that actual consumption of hexane was between 11.20 Kg (2012- 13) and 14.40 Kg (2014-15)1. MoPNG/Management stated (November 2015) that through optimisation of hexane recovery operation and reduction of hexane in wax, net consumption of hexane has been reduced over the period. Further, modifications in enhanced hexane recovery system have been envisaged to reduce the hexane consumption. Management's reply may be viewed against the fact that since excess consumption is showing an increasing trend from 2012-13 the Company is required to limit the consumption within design standard to reduce its cost of production. Additional cost incurred on account of excess consumption of hexane worked out to ` 16.43 crore as detailed in Annexure-VIII.
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