Heat of compression type dryer is used to remove moisture from compressed hot air. Compressed hot air, directly from air compressor discharge is taken to air dryer inlet through insulated pipelines, at 120 DegC(minimum) temperature. This hot air is passed through drying vessel, where saturated desiccant is regenerated by hot air. After picking up moisture from desiccant bed, the air is cooled in an intermediate cooler. Here moisture is condensed and removed by auto drain valve. After the air is cooled to 40oC, then it passes through the second drying vessel where balance moisture gets adsorbed and dry air comes out. This dryer is fully automatic with pneumatically actuated ball/ plug valves. A sequence timer control operates these valves.