Ministry of Environment and Forests. Pre-Feasibility Report as per Ministry of Environment and Forests Letter dated 30 th December, 2010

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1 Ministry of Environment and Forests Pre-Feasibility Report as per Ministry of Environment and Forests Letter dated 30 th December, Executive Summary Reekriti Distilleries Pvt Ltd Unit- 100 KLPD Distillery (Molasses Potato /Grain Based) & 2.5 MW co gen power. Village : Jalalabad, Tehsil & Distt.: Kannauj (UP) Location Co-ordinates of Plant and Machinery at Centre :- Latitude : N Longitude: E Location Co-ordinates of Corners:- 1 st Corner (South ) Latitude : N Longitude: E 2 nd Corner (North West) Latitude : N Longitude: E 3 rd Corner (North East) Latitude : N Longitude: E 4 th Corner, (South East) Latitude : N Longitude: E 2. Introduction of the project Background information Total project cost: Lakhs Area: Acre No of Working Days : 330 Days The proposed capacity of Distillery Plant is 100 KLPD (Molasses/Potato/Grain Based) and 2.5 MW Co gen Power. It is a Green field project based on the concept of Zero Discharge. The distillery is proposed in the Village Jalalabad, Tehsil & District: Kannauj due with respect to availability of raw material

2 (Potato/Grains and Molasses), water, electricity, unskilled, skilled and professional men-power etc. The plant is located in one of the good Potato and Grain (Like Maize) growing area in the state of Uttar Pradesh. In order to effectively utilize the Potato and Grain of nearby areas, the management of Reekriti Distilleries Pvt Ltd is planning to establish a Molasses/Potato/Grain based Distillery with latest technology for Fermentation system, Wash to ENA Multi- Pressure Distillation System and Forced Circulation reboiler, Raw spent wash concentration in MEE and fallowed by incineration in incineration boiler in case of Molasses based operation and in Potato / Grain Based Operation raw spent wash will be treated through Decantation then Multi effect evaporators then finally MEE reject will be mixed with Wet Cake then dried in Wet Cake Dryer and Finally will be sold as Cattle Feed. The distillery shall also have the facility to manufacture Absolute Alcohol (Fuel Ethanol) using Molecular Sieve Dehydration Technology, keeping in view the fuel ethanol policy of Government of India. i. Identification of project and project proponent. In case of mining project, a copy of mining lease/letter of intent should be given. ii. Brief description of nature of the project. The Establishment of New Molasses/ Potato / Grain based Distillery Plant : 100 KLPD (Molasses/ Potato / Grains) and 2.5 MW of M/s Reekriti Distilleries Pvt Ltd at Village : Jalalabad, Tehsil & District : Kannauj (U.P.) Reekriti Distilleries Pvt Ltd Plan to Establish a New Distillery Plant of Capacity 100 KLPD (Molasses/ Potato /Grain Based) and 2.5 MW Cogeneration Power Plant at Village : Jalalabad, Tehsil & District : Kannauj (U.P.). It is a Green Field Project and Based on

3 Zero Liquid Discharge. Spent Wash Treatment Strategy 1. Molasses Based: Spent wash of 776 KLD 7.7 KL/KL of Product) then first concentrated in MEE and the MEE reject will be incinerated in Slop fired Boiler of capacity 35 TPH. 2. Grain Based: The Grain Spent Wash of 690 KLD 6.9 KL/KL of Product) and Potato Spent Wash of 700 KLD KL/KL of Product) from the bottom of the column will be fed to decanter. Decantation section comprises of centrifuge decanter for separation of suspended Solid from Spent Wash (SLOP). Supernatant from the decantation process will be concentrated in MEE and the reject from MEE (Thick Syrup) will be mixed with Wet Cake of Decanter, then dried in dryer and Dried Solid will be sold off as cattle feed. Other effluent: KLD Will be installed to treat secondary. Condensate from MEE, Spent lees, Floor Washing and Blow downs will be treated in secondary ETP plant (Condensate Polishing Unit ) Product planned: Extra Neutral alcohol / Rectified Spirit/ Ethanol (Absolute Alcohol). iii. Need for the project and its The distillery unit is proposed at Village: Jalalabad, Tehsil & District: Kannauj, UP due to easy availability of raw material in nearby areas. Besides the technical and environmental

4 importance to the country and or region. benefits fuel ethanol offers, it makes tremendous economic sense in India as India's Import bill of crude petroleum is increasing every year. With hundreds of kind of alcoholic beverages being made and consumed in India, the industry can be categorised into four broad groups viz. Indian Made Foreign Liquor (IMFL), Country Liquor (CL), illicit liquor & Beer. IMFL products contain about 42.85% of alcohol. The consumption of CL is slowly on the decreasing trend as some cheap IMFL is available. In spite of this, the CL industry is growing at around 8%. However, government is taking necessary steps to restrict the illicit liquor as it causes loss of revenue and spoils the health of the people, also bad quality may lead to death of consumer. The major consumption of alcohol as of now is for alcoholic beverages. Ethyl alcohol has the potential to become the fuel of the future relegating gasoline to a secondary place. The ethanol produced from the grains is superior in quality as compared with that from molasses. It is estimated that IMFL market will require around 3000 million litres in the year 2014 and expected to grow more than 50% in next 3 years. As Government declares 5% mandatory mixing of fuel ethanol in the gasoline thus there is great potential for new distillery establishment. With reference to Government of India Gazette Dated 4th & 13th Sept 2002 the following states and union territories have to blend 5% Ethanol with petrol w.e.f. 1st Jan This date has now been extended to July 1, 2013 in view of inadequate preparations by certain states and Union Territories.

5 State and Union Territories to blend 5% Ethanol. The Oil companies have also started procurement of Fuel Ethanol by way of issue of tenders in the states of Uttarakhand and Madhya Pradesh. This is a clear indication that the Govt. of India has concrete plans of extending the blending on All India basis. PROJECTED ETHANOL (@5% BLENDING) DEMAND & SUPPLY IN INDIA (IN MN LITERS) Alcohol has assumed a very important place in the Country s economy. It is a vital raw material for a number of chemicals. It has been a source of large amount of revenue by way of Excise Duty levied by State Govt. on Alcoholic liquors. It has a potential as fuel in the form of power alcohol for blending with petrol in the ratio up to 20:80. Fermentation alcohol has great demand in countries like Japan, United States of America, Canada, Sri Lanka, etc. The synthetic alcohol produced by these countries from Naphtha of petroleum crude is not useful for beverages. Large quantities of alcohol were exported out of the country during last few years. Cane Molasses is the single largest raw material. India produces almost 25% of the world's molasses production. The states of Maharashtra and Uttar Pradesh have surplus molasses at present. Consumption of Ethanol in India: Almost 50% of the ethanol production in India is consumed by the industrial sector for production of ethanol-based chemicals like acetaldehyde, acetic acid, esters, butanol, glycol, pentaerythritol, vinyl

6 acetate etc. The remaining 40-50% is utilized by the potable sector. However, with the Government removing controls on price and allocation of molasses, the ethanol-based chemicals industry is facing difficulties as the procurement price of alcohol has increased substantially in the last few years. There are about 303 distilleries in the country with a total installed capacity of 3095 million litres per annum. Fuel Ethanol Economic India is number two in the world in Sugarcane production. The number of sugar factories is 416 and 295 distilleries in the country. Large number of sugar factories co-produce ethanol. The introduction of ethanol fuel will give big boost to Indian economy by following ways: The efficiency and commercial viability of sugar factories will improve. Farmers will get higher price for sugarcane which will improve the socioeconomic status of farmers. Agriculture will get boost because of additional production of sorghum, jawar and sugarcane. Mixing of ethanol to petrol will save foreign exchange worth Rs crores every year. Advantage of Fuel Ethanol The use of ethanol blended gasoline has various benefits as mentioned below and needs to be promoted by the government. The new blend In renewable Reduces dependence on imports of forein oil Improves market opportunity for

7 Agricultural Crops Contributes to rural economic development Benefit Environment Displaces dangerous and Environmental damaging components in gasoline, Such as Benzene. Environmental Benefits Ethanol is one of the best tools to fight urban air pollution from motor vehicles. As an oxygenate (ethanol contains 35 oxygen by weight), fuel ethanol enhances the combustion of gasoline, resulting in a more efficient burn and greatly reduced emissions. It helps reduce all pollutants, including hydrocarbons, NO, CO, fine particulate and toxics. 10% ethanol blends reduce carbon monoxide better than any other reformulated gasoline blend more than 25%. Ethanol is a low in reactivity and high in oxygen content, making it an effective tool in reducing ozone pollution. Ethanol is safe replacement for toxic octane enhancers in gasoline such as benzene toluene and xylene. ETBE lowers gasoline volatility and is particularly effective in reducing VOC Emissions from automobiles. Ethanol is produced from renewable agricultural wastes and feed-stocks such as corn. Sugarcane, wheat, barley oat and wastes, it reduces greenhouse gas emission. iv. Demand-Supply Gap. 70% of Gasoline consumed in India has to doped with 5% of Ethanol. To ensure that

8 350 million Liters of Ethanol of right quality will have to be made available in adequate quantities to various oil depot throughout the Country. In future when India has to reduce the dependence on petroleum imports due to high world market prices the doping of gasoline by ethanol may go as high as 10% to 20%. In that case the requirement of ethanol will be still higher as shown below- The present supply and future projection in terms of ethanol use in India - The projection of fuel ethanol required with blending is about 31% of total alcohol production in India. Considering the possibility of blending of 10% in near future the requirement will increase substantially and therefore installation of more ethanol plants also becomes necessary in order to cope up with the requirement. Next five year projected ENA from grain 60 % & from molasses 40 % Crore Litres of alcohol produced from molasses were used by oil companies in the year of Projection for the year is crores litres by the oil companies. Post 2017 India will require 6.30 billion litres of alcohol mainly from molasses for the use in petrol by the oil companies. Therefore, the huge demand of ENA made out of grain will arise. v. Imports vs. Indigenous production. Only indigenous production. vi. Export Possibility. vii. Domestic/export Markets. viii. Employment Generation (Direct and Indirect) due to the project. 3. Project Description No Domestic Only Direct employment :- approx 60 persons Indirect employment :- approx 100 persons

9 Type of project including interlinked and interdependent projects, if any. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. Establishment of New 100 KLPD Distillery Plant (Molasses/ Potato / Grain Based) along with 2.5 MW co-generation power at Village : Jalalabad, Tehsil & District : Kannauj (U.P.) Location map enclosed (Google EARTH MAP) No alternate site is examined. Site is good in availability of Raw material. During unavailability of molasses, Potato / grain will be utilized as raw material. Site is under safe category as per CGWA. Size or magnitude of operation. 100 KLPD Distillery (Molasses/ Potato / Grain based) along with 2.5 MW Co-gen power. Project description with process details (a schematic diagram! flow chart showing the project layout, components of the project etc. should be given) Raw material required along with estimated quantity, likely source, marketing area of final products, Mode of transport of raw Material and Finished Product. Resource optimization/recycling and reuse envisaged in the project, if any, should be briefly outlined. Distillation and Fermentation flow diagram enclosed with Project report. Molasses: MT/day which will be transported from the nearby sugar units to the proposed Distillery. During the unavailability of Molasses, Potato / Grain will be used as raw material. Total Potato quantity required will be MT/day or Total grain quantity required will be MT/day. During Molasses unavailability, Plant will be run on Either Potato Mode or Grain Mode. 70 % of water shall be recycled in different stages of Process like Cooling Tower, Molasses Dilution etc. 1. Molasses Based: Spent wash of 776 KLD (@ 7.7 KL/KL of Product) then first concentrated in MEE and the MEE reject will be incinerated in Slop fired Boiler of capacity 35 TPH.

10 Availability of water its source, Energy/power requirement and source should be given. 2. Grain Based: The Grain Spent Wash of 690 KLD 6.9 KL/KL of Product) and Potato Spent Wash of 700 KLD KL/KL of Product) from the bottom of the column will be fed to decanter. Decantation section comprises of centrifuge decanter for separation of suspended Solid from Spent Wash (SLOP). Supernatant from the decantation process will be concentrated in MEE and the reject from MEE (Thick Syrup) will be mixed with Wet Cake of Decanter, then dried in dryer and Dried Solid will be sold off as cattle feed. Other effluent: Capacity: KLD will be installed to treat secondary. Condensate from MEE, Spent lees, Floor Washing and Blow downs will be treated in secondary ETP plant (Condensate Polishing Unit ) Other Effluent Generation Molasses Mode Potato Mode Grain Mode 1168 KLD 1042 Mode 832 KLD Ground water through Tube well. Fresh Water requirement Molasses Based Operation : Industrial use: 990 KLD (@ 9.9 KL /KL of Product ) Potato Based Operation : Industrial use: 607 KLD (@ 6.07 KL /KL of Product ) Grain Based Operation : Industrial use: 900 KLD (@ 9.0 KL /KL of Product ) Domestic Use: 12 KLD Power Requirement KWH

11 Power shall be supply State Grid and in house production. Quantity of wastes to be generated (liquid and solid) and scheme for their Management/ disposal. Liquid effluents- 1. Molasses Based: Spent wash : 776 KLD (@7.6 KL/KL of Product ) 2. Potato Based: The Potato Spent Wash : 7.0 KLD (@7.0 KL/KL of Product) 3. Grain Based: The Grain Spent Wash : 6.9 KLD (@7.0 KL/KL of Product) Spent Wash Treatment strategy: 1. Molasses Based: Spent wash of 776 KLD (@ 7.7 KL/KL of Product) then first concentrated in MEE and the MEE reject will be incinerated in Slop fired Boiler of capacity 35 TPH. 2. Grain Based: The Grain Spent Wash of 690 KLD (@ 6.9 KL/KL of Product) and Potato Spent Wash of 700 KLD (@7.0 KL/KL of Product) from the bottom of the column will be fed to decanter. Decantation section comprises of centrifuge decanter for separation of suspended Solid from Spent Wash (SLOP). Supernatant from the decantation process will be concentrated in MEE and the reject from MEE (Thick Syrup) will be mixed with Wet Cake of Decanter, then dried in dryer and Dried Solid will be sold off as cattle feed. Other effluent: Capacity: KLD will be installed to treat secondary. Condensate from MEE, Spent lees, Floor Washing and Blow downs will be treated in secondary ETP plant (Condensate Polishing Unit )

12 Schematic representations of the feasibility drawing which give information of EIA purpose. 4. Site Analysis Other Effluent Generation Molasses Mode Potato Mode Grain Mode 1168 KLD 1042 Mode 832 KLD Domestic Waste: 8.0 KLD will be treated in separate soak pit and septic tank. Solid Waste- : During Molasses Based Operation Fly Ash approx MT/DAY which shall be used in filling low lying area and will be supplied to Brick kiln, During Potato / Grain based operation Fly ash generation will be 53.0 MT/Day, which shall be used in filling low lying area and will be supplied to Brick kiln, Fermenter Sludge : 6.4 MT/Day During Grain Based Operation Grain Residue: Approx 73.5 MT/Day, Which will be used in manufacturing of Cattle Feed. Potato Residue: Approx 66.0 MT/Day, Which will be used in manufacturing of Cattle Feed. It will be enclosed in EIA report. i. Connectivity. Railway Station: Gursahaiganj Km, Jasoda : 5.02 km Air Port: Chaudhary Charan Singh Airport,Amausi Lucknow Kms National Highway : NH Meters

13 ii. Land Form, Land use and Land ownership. Plain and Non Agricultural Land is registered. iii. Topography (along with map). iv. Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ)), shortest distances from the periphery of the project to periphery of sanctuary, eco from the HFL industrial area, be given. v. Existing Infrastructure. Not any vi. Soil classification vii. Climatic data from secondary sources. viii. Social Infrastructure available. 5. Planning Brief i. Planning Concept (type of industries, transportation etc) Town and Planning/ Development authority Classification ii. Population Projection iii. Land use planning (breakup along with green belt etc). iv. Assessment of Infrastructure Demand (Physical & Social). Location Map (Google Earth map) enclosed. Land use pattern will be incorporated in EIA Study report. Silty/clay/sand Max. Temp:42 Degree C Mini. Temp: 1.1 Degree C Ave Temp: 28 Degree C Relative Humidity: % Ave Temp: 30 Degree Road, school & electricity. Transportation by Road. 67 % of Land will be for Plant establishment and other facilities. 33 % of total area Shall be used for Green Belt Development. Local labors & construction material. v. Amenities/Facilities. Companies employees and costumer/ consumer shall be provided. 6. Proposed Infrastructure i. Industrial Area (Processing Area). Industrial land

14 ii. Residential Area (Non Processing Area). iii. Green Belt. iv. Social Infrastructure. v. Connectivity (Traffic and Rail/Metro/Water ways etc) vi. Drinking Water Management (Source water) vii. Sewerage System. viii. Industrial Waste Management. As the Site is proposed near to district head quarter hence not proposed within project site Green belt development: 33% of total area of proposed land. Proposed plant will lead to the development of certain local ancillary facilities and consequent employment opportunities. Further the proposed establishment will also lead to the development of market, trade centers, banking activities etc. Railway Station: Gursahaiganj Km, Jasoda : 5.02 km Air Port: Chaudhary Charan Singh Airport,Amausi Lucknow Kms National Highway : NH Meters Ground water, Block fall under the safe category as per the assessment of CGWA. Septic tank/soak pit shall be available for domestic effluent treatment. Spent Wash Treatment strategy: 1. Molasses Based Operation : Spent wash first concentrated in MEE and the MEE reject will be incinerated in Slop fired Boiler of capacity 35.0 TPH. 2. Grain Based Operation : Spent wash from the bottom of the column will be fed to decanter. Decantation section comprises of centrifuge decanter for separation of suspended Solid from Spent Wash (SLOP). Supernatant from the decantation process will be concentrated in MEE and the reject from MEE (Thick Syrup) will be mixed with Wet Cake of Decanter, then dried in dryer and Dried Solid will be sold off as cattle feed.

15 Other effluent: Capacity: KLD will be installed to treat secondary. Condensate from MEE, Spent lees, Floor Washing and Blow downs will be treated in secondary ETP plant (Condensate Polishing Unit ) Domestic Waste: 8.0 KLD will be treated in separate soak pit and septic tank. ix. Solid Waste Management. Solid Waste- : During Molasses Based Operation Fly Ash approx MT/DAY which shall be used in filling low lying area and will be supplied to Brick kiln, During Potato / Grain based operation Fly ash generation will be 53.0 MT/Day, which shall be used in filling low lying area and will be supplied to Brick kiln, 2- Power Requirement & Supply / source. 7. Rehabilitation and Resettlement (R&R) Plan i. Policy to be adopted (Central/State) in respect Of the project affected persons including home oustees, land oustees and landless laborers (a brief outline to be given). Fermenter Sludge : 6.4 MT/Day During Grain Based Operation Grain Residue: Approx 73.5 MT/Day, Which will be used in manufacturing of Cattle Feed. Potato Residue: Approx 66.0 MT/Day, Which will be used in manufacturing of Cattle Feed. Power generation 2.5 MW is proposed which shall be used for in-house consumption and export purposes. Total Power Requirement KWH No R & R

16 8. Project Schedule & Cost Estimates ii. Likely date of start of construction and likely date of completion (Time schedule for the project to be given). iii. Estimated project cost along with analysis in terms of economic viability of the project. 9. Analysis of proposal (Final Recommendations) i. Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area. After grant of NOC & Environmental Clearance. Rs : Lakhs Financial Benefits: Benefits and advantages of Distillery a) The efficiency and Commercial viability of Sugar Factories will improve. b) Farmer will get Higher price for Sugar Cane, Potato and Grain Like Maize. c) Every 5% addition of ethanol to Petrol will save foreign exchange worth Rs Crores every year. d) It also help in minimizing the demand supply gap Social Benefits: a) Greater employment for local populations b)contributes to rural economic development c) Displace dangerous and Environmental damaging component in Gasoline, Such as Benzene. Environmental benefits: 1. 10% ethanol blends reduce carbon monoxide better than any reformulated Gasoline Blend More than 25 %. 2. Ethanol is Low in reactivity and High in Oxygen content, Making it an effective tool in reducing Ozone Pollution. 3. Ethanol is Safe replacement for toxic Octane enhancer in Gasoline such as Benzene, toluene and Xylene.

17 Other Benefits: a) Revenues to the State and Central exchequers. b) Over all development of Kannauj District in particular and Uttar Pradesh State in general.

18 REEKRITI DISTILLERIES PVT LTD, VILLAGE : JALALABAD, KANNAUJ (U.P.) WATER REQUIREMENT & GENERATION OF WASTE WATER FOR CAPACITY 100 KL/DAY SPIRIT PRODUCTION MOLASSES BASED OPERATION Total Water Requirement KLPD Molasses 320 KLPD (450 ton/day) Floor Washing 20 KLPD Process use ( From CPU) = 1000 KLPD Spent lees 444 KLPD Fermentation 1320 KLPD Production 100 KLPD Spent wash 776 KLPD Industrial use KL/KL of Product Water for DM Plant 196 KLPD Condensate KLPD Evaporator Cap.-800 m3/day 776 KLPD MEE steam condensate 171 KLPD Boiler 35 TPH CPU 1300 KLPD (1168 KLD) Slope 232 KLPD (Burn in INC. Boiler) Boiler Blow down 15 KLPD Power 2.5 MW Treated water for recycling 1144 KLPD Cooling Tower makeup water 918 KLPD CT Blow Down 145 KLPD Export & self consumption * Total Industrial Water Consumption : lit/lit of spirit *Waste water generation : KL/KL of sprit *Total effluent burn in INC. Boiler * Liquid Discharge - NIL A

19 REEKRITI DISTILLERIES PVT LTD, VILLAGE : JALALABAD, KANNAUJ (U.P.) WATER REQUIREMENT & GENERATION OF WASTE WATER FOR CAPACITY 100 KL/DAY SPIRIT PRODUCTION GRAIN BASED OPERATION Total Water Requirement 900 KLPD (@ 9.0 KL/KL) Steam 74.0 TPD 275 Process use 704 KLPD 80.0 CO Industrial use 900 KLPD Boiler make up water 196 KLPD Grains 258 Ton/day Liquefaction KLD Fermentation KLD Wash to ENA MPR Distillation KLD 342 TPD Steam PR lees 172 KLPD Rect lees KLPD Production 100 KLPD Spent wash 690 KLPD Condensate KLPD Evaporator Cap.-800 m3/day 552 KLPD Decanter Centrifuge 690 KLD CPU KLPD Treated water for recycling 817 KLPD = 160 Slope / Syrup KLPD Wet Cake (138 MT/Day) Boiler Blow down 15 KLPD Boiler 35 TPH Power 2.5 MW DWGS Dryer MT Export & self consumption Floor Washing 20 KLPD Cooling Tower makeup water KLPD CT Blow Down 145 KLPD DDGS 73.5 MT Cattle Feed

20 REEKRITI DISTILLERIES PVT LTD, VILLAGE : JALALABAD, KANNAUJ (U.P.) WATER REQUIREMENT & GENERATION OF WASTE WATER FOR CAPACITY 100 KL/DAY SPIRIT PRODUCTION POTATO BASED OPERATION Total Water Requirement 607 KLPD (@ 6.07 KL/KL) Steam 74.0 TPD 82.0 Process use 411 KLPD 80.0 CO Industrial use 607 KLPD Boiler make up water 196 KLPD Potato Ton/day Liquefaction KLD Fermentation 1210 KLD Wash to ENA MPR Distillation 1310 KLD 342 TPD Steam PR lees 351 KLPD Rect lees KLPD Production 100 KLPD Spent wash 700 KLPD Condensate KLPD Evaporator Cap.-800 m3/day 581 KLPD Decanter Centrifuge 700 KLD CPU KLPD Treated water for recycling KLPD = 160 Slope / Syrup KLPD Wet Cake (119 MT/Day) Boiler Blow down 15 KLPD Boiler 35 TPH Power 2.5 MW Dryer 189 MT Export & self consumption Floor Washing 20 KLPD Cooling Tower makeup water KLPD CT Blow Down 145 KLPD Cattle Feed 66 MT Cattle Feed