PRE-FEASIBILITY REPORT INTEGRATED SUGAR 5000 TCD, COGEN 18 MW AND NEW 30 KLPD DISTILLERY GAT NO.10, 11/1, 11/2, 15/3(PART), KAVATHE

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1 PRE-FEASIBILITY REPORT OF INTEGRATED SUGAR 5000 TCD, COGEN 18 MW AND NEW 30 KLPD DISTILLERY AT GAT NO.10, 11/1, 11/2, 15/3(PART), KAVATHE MALKAPUR, TAL. SANGAMNER, DIST. AHMEDNAGAR, MAHARASHTRA BY M/S. UTECH SUGAR LIMITED, 2055, ANANT RESIDENCY, SADASHIV PETH, TILAK ROAD, PUNE

2 INDEX Sr.No. Particular Page No. 1.0 Executive Summary Promoters Background and Profile Need of project and its importance to the country and region Demand and Supply Gap Brief Description of the Project Land and Site Development Employment Potential Details of alternate site Raw Material and its Suitability Manufacturing Process Production Details Water Requirement Power Requirement Soil Classification Waste Management Air Pollution Management Solid Waste Generation and Management Rehabilitation and Resettlement Cost of Project 16

3 LIST OF FIGURES Fig. No. Particular Page No. 3.1 Site Location Google Image of Project Sugar Manufacturing Process Process Flow Diagram of Cogen Power Plant Ethanol production process flow chart ETP of sugar cogen complex Spent Wash Treatment Master Layout 17 LIST OF TABLES Table No. Particular Page No. 3.1 Salient Features Site Connectivity and environmental Sensitivity Steam Balance Ethanol Plant Details Production Quantities Budget Allocation 16

4 1.0 EXECUTIVE SUMMARY M/s Utech Sugar Ltd. (USL) has set up 3800 TCD sugar and 14 MW cogen power plant at Kavathe Malkapur, Tal. Sangamner, Dist. Ahmednagar. USL has undertaken 1st trial crushing season in and crushed about 3.01 lakh MT of cane and produced 3.32 lakh MT of sugar with an average recovery of 11.04% on cane. USL has exported surplus power of 1.58 Million Units to MSEDCL. USL is now planning to increase the cane crushing capacity from present 3800 TCD to 5000 TCD (net addition of 1200 TCD). The company also proposes to increase its cogen power capacity from existing 14.0 MW to 18.0 MW for export of surplus power to grid and set up New 30 KLPD Ethanol plant. USL decided to go for the expansion for the above-mentioned capacities along with ethanol plant considering the existing sugarcane availability and future potential for sugarcane cultivation in the area of operation in the coming years due to excellent rainfall. The integrated project comprises of a sugar mill for the manufacture of high quality sugar, thereby making available bagasse that is required for the cogen power plant operation and molasses for producing ethanol. The area of operation for the sugar mill has good rainfall of about 474 mm. This gives huge availability and potential for sustained sugarcane supply to the sugar mill and thereby making sustained supply of bagasse and molasses for cogen power and ethanol plant respectively. USL already has acres land in possession for the sugar factory and is sufficient for the proposed expansion project. The water required is made available from the back water of Mula Dam which has huge amount of water for supply of required water throughout year for operation of the proposed project. The company has already lifted water from Mula River and constructed water supply scheme of 7 Km. The surplus power from cogen plant will be transmitted to 220 kv MSETCL Electrical Sub-station through LILO arrangement at Darewadi about 5 Km from site. The aggregate fund requirement for the integrated expansion project has been estimated at Rs lakh. Page 1 of 17

5 2.0 PROMOTER S BACKGROUND & PROFILE Mr. Ravindra Purshottam Birole, age 50 is the chief promoter and the Managing Director of USL. He passed D.M.E in the year He started Utech Engineering Consultancy Services and in 1991 Utech Engineering Works (I) Pvt. Ltd. was established to provide services in the field of Design, Manufacturer, supply, erection & commissioning of Mill House, Boiling House, Sugar refineries, Material handling on Turnkey basis. Utech also entered into the field of supply of equipment for distillery manufacturing rectified spirit and fuel grade ethanol manufacturing form rectified spirit. Mr. Birole started with another company named Rama Agro Foods Pvt. Ltd. which undertakes activities of procuring, processing and marketing the good quality agricultural processed food products in domestic and International market to Customer Satisfaction. The suitability of the soil, increased irrigation facilities and previous experience of the farmers in cane growing will be helpful in developing the required area for cane plantation 2.1 NEED OF PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND REGION India is one of the largest producers of sugarcane as well as sugar in the world. The sugarcane is a cash crop for farmers. There are about 564 installed sugar factories in India. Most of the sugar industries are located in rural areas providing employment to rural masses. Sugar factories from Maharashtra are the backbone of rural economy. These factories have contributed for the development of economy as well as infrastructure in rural areas, generated ample of employment opportunity to local people. The project proponent is one of a private sugar factory from the region of Maharashtra. The cultivation of sugarcane is increasing every year in the command area of the factory and it is anticipated to grow gradually for next few seasons. In addition, the sugar factory is having plans to promote and support the cane development programme, in its command area DEMANDS-SUPPLY GAP The project is envisaged to meet the demand supply gap in both domestic and export market demand is increasing day by day. The policy of Central Government is to increase percentage of ethanol blending with petrol from the present 10% to 20% by the year Page 2 of 17

6 2017. Therefore, it is important to all distilleries in the country to increase its ethanol production to meet the demand & supply. 3.0 BRIEF DESCRIPTION OF THE PROJECT The proposed scheme envisages for enhancing the sugarcane crushing capacity by addition of 1200 TCD to its 3800 TCD sugar plant (total capacity of 5000 TCD) considering the huge potential raw material available from the nearby villages. This expansion program shall be met by addition of equipments in milling and boiling house sections and necessary modifications in cogen power plant. The company also proposes to set up new 30 KLPD ethanol plant along with captive cogen power plant. The spent wash generated will be mixed with press mud and sold to the farmers which will help in achieving zero discharge. The power requirements of the distillery unit shall be met from the separate captive cogen power plant of 2 MW. Table No. 3.1 Salient Features Sr.no. Description Details 1 Name of the Company & M/s Utech Sugar Ltd. 2055, Sadashiv Peth, Address Anant Residency, Tilak Road, Near Girija Hotel, Pune Factory Site At Gat no 10,11/1,11/2, 15/3 (Part) Kavathe Malkapur, Tal. Sangamner, Dist. Ahmednagar, Maharashtra 3 Constitution & Type Limited Company 4 Products & By Products 1. Sugar 2. Cogeneration power 3. Ethanol 5 Existing Capacity of the Project Sugar Plant: 3800 TCD Cogen Power Plant (14 MW: DEC type) 6 Proposed Expansion Capacities of the Project Proposed Sugar Plant: 1200 TCD Total installed capacity: 5000 TCD Proposed Cogen Power : 4 MW Total installed capacity: 18 MW New Ethanol Plant : 30 KLPD Page 3 of 17

7 7 Commercial Operation Date- October, 2019 (C.O.D) 8 Working Days 160 days of sugar plant 160 days of cogen plant (Season) 66 days of cogen plant (Off-Season) 270 days of ethanol plant 9 Basic Raw material 8.00 lakh MT of Sugarcane requirement per annum 10 Bagasse, Molasses & Press mud Bagasse MT per Annum Available from sugarcane Molasses MT/Annum crushing Press mud MT / Annum 11 Steam requirement per hour MT for sugar process, 8.00 MT for Ethanol process 12 Power Generation per hour (Export)-Season kw (10470 kw export) Steam to Power Ratio of 5.60 kg/kwh) 13 Power Captive use per hour 5786 kw for sugar & colony, 800 kw for ethanol, 1610 kw for Cogen Auxiliaries 14 Power Generation per hour (Export)-Off- season kw (15950 kw) Steam to Power Ratio of 4.20 kg/kwh) 15 Power Captive use per hour 250 kw for sugar & colony, 800 kw for ethanol, 1800 kw for Cogen Auxiliaries 16 Water requirement per day (Incremental capacity) 500 m3/day for sugar 120 m3/day for cogen 150 m3/day for ethanol 17 Purchase cost of Sugarcane Rs 3000 per MT 18 Selling price of Sugar Rs 30,000 per MT 19 Power Tariff 6.27 Rs/kWh 20 Selling price of Ethanol Rs per litre 21 Bio-Compost Selling Price Rs. 750/MT 22 Project Cost Rs lakh. Page 4 of 17

8 Table No. 3.2 Site Connectivity and environmental Sensitivity 1 Nearest Village Kavthe Malkapur 310 meter 2 Nearest Town / City Sangamner km 3 State Highway State Highway No. 49 is 50 Meter 4 Nearest National Highway NH 222 is km 5 Nearest Railway station Rahuri railway station is km 6 Nearest Airport Shirdi airport is km 7 National Parks, Reserved Forests (RF) / Protected Forests (PF), Wildlife Sanctuaries, Biosphere Warwandi Reserve forest 3.5 km towards north Direction, Chikaldhan Reserve forest 2.5 km towards East Direction and Reserve forest 6.4 km towards South Direction. Reserves, Tiger/ Elephant Reserves, Wildlife Corridors etc. within 10 km Radius 8 River / Water Body Mula river is 5.02 km, towards South Pravara river km towards North Fig. 3.1 Site Location Page 5 of 17

9 Fig. 3.2 Google Image of the Project Project Implementation Schedule The promoters have planned to complete the proposed integrated expansion by October Land and site development The sugar factory has already in possession land of about acres and is sufficient for the proposed expansion. Most of the land is plain with not much level difference and strata of the land are quite hard. There is no need for site development work for sugar and cogen project. However, site development expenses will be required for ethanol plant. The cost estimated for the site development component for ethanol plant is Rs 60 lakh. This includes leveling of site, compound with fencing along with gate, internal roads, culverts and drainage system for water and green belt development. 3.2 Employment Potential The socio-economic benefits arising out of this project for the local population will include creation of direct and indirect jobs and consequent rise in the income levels, associated commercial and social infrastructure development in the areas, improved Page 6 of 17

10 quality and availability of power due to grid benefits (in terms of deemed generation and power factor improvement), better environment and higher returns for the cane crop due to higher yield and cane price. The captioned project will envisage additional employment for about 71 personnel of various skills and categories mainly in ethanol plant. Apart from this, all associated projects for efficiency improvement, fuel collection, storage, substitution, etc. will give potential for employment in the rural masses, adjoining the USL location and improve their economic status. 3.3 Details of the alternate sites No alternate sites have been examined, as proposed project will be located in existing factory Premises. 4.0 Raw Material and its Sustainability Sugar Plant Ahmednagar district have good cane potential. Black soil available in the district is suited for any kind of cultivation and the area is blessed with adequate irrigation facilities. This district is famous for its rich agricultural production, as it is situated in near Godavari, Mula & Pravara Rivers. The total area under irrigation in the command area is about ha, mainly through water available from the various projects on the Mula, Bhandardara & Pravara Projects. Flood irrigation method is commonly used to irrigate the cane fields The yields of the different varieties of the cane vary, depending on agro-climatic conditions and water availability, from year to year. On an average the yield is expected to be around 100 MT/Ha. In order to get better sugar recovery the ideal ratio of Early, mid late and late maturing varieties should be 40:40:20. In the proposed area of USL, this should be encouraged so that farmers, who plant the late maturing varieties, are given necessary incentives. It is always advisable for the promoters of the proposed sugar factory to have their own cane fields. Also friends and supporters should also be made to grow cane. This will induce confidence in other farmers for cane growing, as it will show that the management can prove that cane growing is commercially more viable than other crops and that it will fetch the farmers a good price. Page 7 of 17

11 To encourage farmers and assure continuous and assured supply of cane from them, it is recommended that USL should supply all inputs like seed cane, fertilisers etc. to farmers through bank loans, by issuing suitable guarantees for recovery of bank loans. It is recommended that USL should also sponsor cane development schemes on its own and / or with the help the farmers in its command area, for availing financial assistance. This will help USL in ensuring assured availability of cane, on a long-term basis. USL has already appointed skilled & experienced personnel within Agronomy Department. With these sustained efforts, USL is sure of getting the required sugarcane for its expanded capacity, by the time plant is commissioned. Cogen Power Plant Bagasse is the main source of fuel that will be available from the sugarcane crushing of 8.00 lakh MT after expansion. This is purely green source of fuel and will not pose any pollution to environment. The cogen plant will be operated for 160 days to cater steam to sugar process during season. The sugar plant will generate about 2,20,000 MT of bagasse. Cogen power plant after expanding it to 18 MW, will use around MT of bagasse during season & balance bagasse after consuming around 9785 MT for the distillery/ethanol plant boiler for its operation will be used for off-season cogen plant operation. Ethanol Plant Molasses generated from the sugar mill is the main source for ethanol plant that will be available from the sugarcane crushing. After expansion to 5000 TCD and 8 lakh MT of cane crushing, the molasses will be available from sugar mill is around MT. Hence, the own raw material availability for the ethanol plant will be assured and will not face any difficulty for its operation for 270 days. Page 8 of 17

12 4.1 Manufacturing process Fig. 4.1 Sugar Manufacturing Process Cogen Power Plant The Cogen power plant of 14.0 MW will be upgraded to 18.0 MW by carrying out modifications / upgradation in boiler, turbine & Air-Cooled Condenser. The boiler capacity will be increased to 100 TPH from existing 90 TPH. Two more cells will be added in Air Cooled Condenser for cooling additional steam extracted from turbine. Page 9 of 17

13 Table No. 4.1 Steam Balance RAW WATER ETP REGENER -ATION WATER DM PLANT WASHI NG COOLIN G TOWER SOFT WATER COOLED WATER FUEL AGROWAS TE BOILER 1 X 100 TPH STEAM STEAM TURBINE GSC GEN 18 CONDENSED STEAM USED IN OTHER UNIT ESP FLY ASH STACK USED FOR BIO COMPOSTING / BRICK MANUFACTURING CLEAN FLUE GAS Fig. 4.2 Process Flow Diagram of Cogen Power Plant Page 10 of 17

14 Table No. 4.2 Ethanol Plant Details Page 11 of 17

15 Molasses from Sugar unit Molasses Weighing Dilution of molasses Addition yeast culture Fermentation Distillation Ethanol/ Anhydrous alcohol Fig. 4.3 Ethanol production process flow chart 4.2 Production details Table 4.3 Production Quantities Description Crushing Year Sugar Cane (MT) 3.01 Bagasse (MT) Molasses (MT) Sugar Produced (MT) Sugar Recovery (%) Molasses (% on cane) 4.22 Bagasse (% on cane) Page 12 of 17

16 4.3 Water Requirement: The water required is made available from the back water of Mula Dam which has huge amount of water for supply of required water throughout year for operation of the proposed project. The company has already lifted water from Mula River and constructed water supply scheme of 7 Km. 4.4 Power Requirement The surplus power from cogen plant will be transmitted to 220 kv MSETCL Electrical Sub-station through LILO arrangement at Darewadi about 5 Km from site. Company has already entered Power Purchase Agreement with MSEDCL. 4.5 Soil Classification District has got rich Black soil, which is most fertile, heavy and useful for sugarcane farming. Reddish and Coarse Grey soils are available in the district in which soyabean, Sugarcane, Maize, Tur, Jowar, Wheat and various type of pulses has been mainly produced 5.0 Wastewater Management Sewerage system Domestic waste water generated will be sent to septic tank and soak pit. Effluent Treatment System The spent wash of a distillery process is a serious problem by way of threat to the environment. USL is adopting 4 stage zero discharge effluent treatment process to take care of spent wash around 90 KL/day. Due care will be taken in design, implementation and operation of the captioned project for satisfactory disposal and effective utilization of plant effluents, waste water and colony waste water. Scientific treatment will be given to ensure that waste water from all sources needs the norms stipulated by the Maharashtra Pollution Control Board and CPCB. The effluent / spent wash will be concentrated in evaporators after biomethanation followed by bio-composting. Page 13 of 17

17 In order to fulfill the Pollution Norms and to achieve zero Discharge and at the same time to operate ethanol plant for the period 270 days per annum, the company has proposed to go for Bio-Compost after bio-gas and evaporation. The bio-compost will be sold to farmers. SUGAR UNIT EFFLUENT EFFLUENT OF COGEN BAR SCREEN CHAMBER OIL SKIMMER EQUALIZATION TANK Sludge PRE CLARIFIER BIO-AERATION TANK- I Sludge CLARIFIER BIO-AERATION TANK- II Sludge CLARIFIER Return Sludge Sludge SLUDGE DRYING BED FILTERATION UNIT F TREATED EFFLUENT COLLECTION TANK GARDENING GREEN BELT DEVELOPMENT R&D FARM Fig. 5.1 ETP of sugar cogen complex Page 14 of 17

18 Fig. 5.2 Spent Wash Treatment 5. 1 Air Pollution management Main air polluting elements discharged from the proposed Cogen Project include dust particulate from fly ash, Nitrogen oxides and Sulphur-di-oxide in the flue gas The ESP is already installed to maintain the particulate matter emission below 100 mg/nm 3. flowing through flue gases. Bagasse contains minor quantity of sulphur. Hence, the chimney height is calculated as per the designated formula the problem of Sulphur can be tackled. The temperatures encountered in the boiler while burning high moisture bagasse are lower enough to minimize the nitrogen-oxides production. Moreover, the tender specification for boiler will stipulate over fire air system with staged combustion, to ensure reduction in nitrogen-oxide emission. Hence, no separate measures are taken to contain the nitrogen oxide pollutants. 5.2 Solid Waste Generation and Management In this project only bagasse as fuel is considered and no coal will be used. Total bagasse utilized during season will be MT and MT bagasse will be used in offseason and distillery boiler for 270 days. Ash generated will be 3200 MT & 1200 MT (total 4400 MT).Total ash is generated as bottom ash which is collected at the bottom of the boiler below grate (travelling grate or dumping grate) and fly ash which fly along with exhaust gases. Page 15 of 17

19 ESP is already installed to arrest the fly ash and same will be collected and sent to ash silo. ESP will be designed to maintain the particulate matter emission below 100 mg/nm 3. The ash generated will be initially stored in silos and suitably supplied to the brick manufactures through trucks and also can be used to mix in the farms. As the ash generated from the bagasse has high potash value, same can be used to mix with press mud and use for bio-compost production and then sell it to farmers as fertilizer. The sludge from primary clarifies, settling tank and secondary clarifier will be sent to sludge drying beds. Sludge will be dried in natural heat of sunlight. The dried cakes will be scrapped off periodically and can be utilized as manure. 6.0 Rehabilitation and Resettlement The project site is fully in possession over the years. The present proposal is only for expansion Thus, no Rehabilitation or Resettlement issues are any more involved with no human settlement. 7.0 Cost of the project Table 7.1 Budget Allocations Sr. Description Sugar Cogen Ethanol Total in no INR Lakhs 1 Land Site Development Civil Works Plant and Machinery Misc. Fixed Assets Prelim& Pre op Expenses 7 Contingencies Working capital margin Total Page 16 of 17

20 Fig. 8.0 Master Layout Page 17 of 17