Pre-Feasibility Report. For. Upgradation, Modernization and Expansion Project on Writing and Printing Paper based on Wood and Agro-Residues

Transcription

1 Pre-Feasibility Report For Upgradation, Modernization and Expansion Project on Writing and Printing Paper based on Wood and Agro-Residues At Village Saila Khurd, Tehsil Garhshankar, Distt. Hoshairpur PUNJAB, INDIA APPLICANT M/s Kuantum Papers Ltd Saila Khurd, Tehshil Garhshankar, Distt. Hoshiarpur, PUNJAB , India 25 th August,

2 Contents S. No. Contents Page No. 1 Executive Summary 1 2 Introduction to the Project/Background Information 8 3 Project Description 17 4 Site Analysis 44 5 Planning Brief 47 6 Proposed Infrastructure 48 7 Rehabilitation and Resettlement (R&R) Plan 51 8 Project Schedule & Cost Estimates 51 9 Analysis of Proposal (Final Recommendations) 52 2

3 1. Executive Summary Kuantum Papers Ltd (Earlier ABC Paper Ltd) was set up in 1980 to manufacture Writing and Printing Paper. Kuantum Papers Ltd. has its operations at Sailakhurd in Punjab in North India, adjacent to the main Sate Highway SH-24, and is spread in an area of 257 acres. The plant is a fully integrated facility to make Paper from Agro and Wood based pulp. Pulping is done from various kinds of agricultural residues like Straws and Baggasse, and Wood apart from using purchased hardwood and Soft wood pulp. Current capacity of plant is to produce tonnes per annum (450 TPD) of Writing and Printing Paper. In view of the strong fundamentals of the paper business and its growth potential, the management, in the year , had undertaken a strategy to expand the paper business and sustain its competitiveness through capacity enhancement and cost reduction initiatives. The management implemented the Mill Expansion Programme covering setting up of: Chemical Recovery Plant, Co-Generation Power Plant, Wood Pulp Street, Paper Machine IV, Waste Paper/Purchased Pulp Pulping Street after obtaining necessary Environmental Clearance from Ministry of Environment and Forests (MoEF), New Delhi. The above expansion tripled the capacity of plant from 150 TPD to the existing 450 TPD, and enabled Kuantum to achieve economies of scale, reduce cost of production, enhance paper quality and employ an eco-friendly manufacturing process. Presently, Kuantum Papers limited is operating at a capacity of 300 TPD using both wood and agro-residues due to negative cost implications of using imported/purchased pulp for additional 150 TPD capacity. After having established stable operations and having become a large player in the domestic Paper industry, Kuantum Papers Ltd is currently planning implementation of following upgradation, modernization and expansion plan to enhance the profitability and improve the ecological footprint of the company. Tables 1 and 2 attached below summarize the Up-gradation, Modernization and Expansion Plan, Table 1: Expansion Activities S. No. Particulars Existing Installed Capacity EC No: J-11011/344/2008- IA-II(I) dated Jan 1, 2009 Proposed Expansion in Installed Capacity Total Installed Capacity after Proposed Expansion 1 Paper 450 TPD TPD 2 Agro-Pulp 165 TPD TPD 3 Hard Wood Pulp 60 TPD 140 TPD 200 TPD 4 Pulper for 20 m m3 1

4 Waste Paper/ Purchased Wood Pulp 5 Conventional Chemical Recovery Plant 5 Co-generation Power 6 Effluent Treatment Plant 230 T Black Liquor Solids per day for Caustic Soda Recovery, FBR Soda Ash Recovery Plant with capacity of 100 T Black Liquor Solids per day,lignin Precipitation System (LPS) Plant to recover 25 MT Lignin Per day 350 T Black Liquor Solids per day 580 T Black Liquor Solids per day, Existing FBR Soda Recovery Plant will be kept as stand by plant for planned and unplanned shuts of CRP. LPS Plant will be operated based on marker demand of Lignin MW 12 MW 28 MW (Existing 1.5 MW Turbine will be abandoned) m3/day m3/day m3/day The main highlights of the expansion activities are: The Paper manufacturing capacity of the mill as on date is 450 TPD. This will remain unchanged after the proposed expansion. There is no change in the agro-residue pulping capacity. Purchased Pulp is to be replaced with own hard wood pulp. Existing hard wood pulping capacity is 60 TPD. The proposal is to expand the hard wood pulping capacity to 200 TPD. S.No Particulars Existing Facility EC No: J /344/2008-IA-II(I) Jan 1, Agro- Pulping Street 2 Hard Wood Pulping Street Table 2. Modernization and Up-gradation: Proposed Upgradation/Modernization Continuous Digester Addition of one more continuous digester to debottleneck the existing Continuous digester resulting after upgradation due to change in pulping from soda process to sulphate process Convention pulp Addition of Oxygen Delignifcation (ODL) Stage, washing and Modifications in bleaching lines to make the material of bleaching system construction suitable for partial substitution of elemental chlorine with chlorine dioxide to reduce elemental chlorine usage in agro pulping street. The existing Bleaching sequent XCEopHH will be modified to XC/DEopHH. 3 Nos Stationery Vertical Digesters Conventional washing bleaching. pulp and Installation of additional three (3) vertical digesters to enhance the bleached pulping capacity to 200 MT /day. Addition of Oxygen delignification stage. Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free (ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up 2

5 gradation, the bleaching sequence will be ODL followed by ED0EopD1. 3 Cogeneration 17.5 MW ( 10MW, 5 Installation of 12 MW new turbine. The operation of 1.5 MW, 1.5 MW, 1 MW) MW turbine will be discontinued. With the installation of Power 3 Boilers (2 Nos 26 new 12 MW turbine, the total Co-generation power TPH & 1No 60 TPH) capacity will be 28 MW. One power Boiler with capacity of 80 TPH will be added. 4 Chemical Recovery Chemical Recovery One more Chemical Recovery plant with 350 MT Black Plant : 230 MT Black Solids/day Capacity will be installed. Existing Fluidized Bed Plant Liquor Solids/day Reactor, presently being operated to process 100 MT Black Capacity: For Liquor solid will be discontinued and will retained as recovery of ca ustic Standby equipment. Existing 230 MT/day capacity soda (White Liquor) conventional CRP and proposed new 350 MT /day capacity Solids and recovery conventional chemical recovery plant will be operated of Soda: 100 MT BL after expansion to regenerate white liquor. Existing Solids: For recovery Recovery Boiler will be modified to make it suitable for of Soda Ash; Lignin black liquor generated from sulphate process Lignin Precipitation System Precipitation System (LPS) will be operated only to meet for recovery of 25 MT the market demand of lignin for specialized application. Lignin per day from The filtrate(sodium Sulphate) of Lignin Precipitation 140 MT Black Liquor System (LPS) will be used as make up chemical in Chemical Solids/day Recovery plant. The main highlights of the upgradation and modernization plan are: Addition of Oxygen Delignification (ODL) stage in the existing agro-pulping Street. Modification in the agro street bleach plant to upgrade the bleaching sequence from existing XCEopHH to XC/DEopHH for substitution of elemental chlorine with chlorine dioxide. Elemental chlorine free (ECF) wood pulping street. The existing bleaching sequence is XCEopHH. After up gradation, the bleaching sequence will be ODL followed by ED0EopD1. Existing 60 TPD wood street will be utilized to debottleneck agro-pulping washing street. One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed enabling the mill to process entire black liquor in conventional Chemical Recovery Plant. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. FBR Soda Ash Recovery Plant will be kept as a stand by plant. The total estimated project cost of the project is Rs 337 Crores. More than 45% of this estimate will be spend towards implementation of Environmental Management Plan. The following Table 3 summarizes the project estimates under different heads. Table 3: Estimated Project Cost S.No Particulars Details Estimated Cost (INR Crores) % age of Total Estimated Cost 1 Capacity Expansion and Wood Pulp mill, % 3

6 Upgradation/Modernizat ion Upgradation of Agro-Pulp Mill 2 Co-generation Power 12 MW Turbine, 80TPH % Plant Power Boiler 3 Environmental New Chemical Recovery % Management Plant, Oxygen Delignification, Chlorine Dioxide plant, Upgradation of Effluent Treatment Plant, Odour Control System, Lime Kiln etc. Total % 4

7 The following is the summary of the various environmental safeguards planned under the proposed expansion, up-gradation and modernization plan. S. Particulars Prescribed limits/ Existing Status Proposed Safeguard/Management after Expansion No Requirement 1. Water Consumption/T on of Paper Not specified After proposed expansion, the water consumption is expected to come down to 65 m3/ton of paper due to upgradation of equipment and modernization of the process. 2. Waste water discharge /ton of Paper Recycling of treated effluent to low value application where colour is not a limiting factor. 3 Treated COD: 350 ppm; BOD: COD < 250 ppm; BOD < 28 ppm; TSS Capacity of the ETP will be updraded from existing Effluent Parameters 30 ppm ; TSS: 50 ppm; ph: ; < 50 ppm; ph ; SAR < 10 m3/day to m3/day to treat additional volume of effluent and maintain the parameters within prescribed limits. SAR: 26 4 AOX Less than 1 Kg/ton of Paper < 1 Kg/ton of Paper Will be maintained within prescribed limits. ODL and partial substitution of elemental chlorine with chlorine dioxide proposed in the existing bleaching sequence for agro-pulping street. ODL and ECF process proposed for wood pulping street. 5 Installation of Lime Kiln Required Lime Kiln Capacity required for existing pulping capacity is 80 MT (BD) Lime sludge for recovery of 45 MT CaO. The company has installed Lime kiln with capacity of The capacity of the Lime Kiln will be upgraded to meet the requirement after expansion. 5

8 140 MT (BD) Lime sludge to recover 80 MT CaO. 6 Green Belt 33% of total area 42% of total area 45% of the total area will be covered under green belt. 7. Stack Emissions < 100 mg/nm3 < 100 mg/nm3 ESPs will be installed in the proposed Boilers to meet the existing norms. 8 Odour Control System For mills using sulphur compounds Not applicable as mill is not using sulphate process Odour control system will be installed under proposed expansion. 9 Solid Waste (ETP Sludge) Disposal as per Hazardous Waste Rules Total Quantity Generated is around 12 MT per day. Being sold to Board Manufacturers. Board Mill for producing 15 MT Board have also been installed. Total Quantity Generation will be around 20 MT after proposed Expansion. Board Manufacturing within premises and sale to board manufactures will be used as mode of disposal. 10 Boiler Ash Coal ash is given to cement Coal ash will be given to cement manufacturers. Capacity to manufacturers. Husk ash is being manufacture bricks will be increased apart from land filling used for brick manufacturing and within premises as per CPCB guidelines. filling of low lying area as per CPCB Guidelines. 6

9 The installation of additional chemicals recovery apart from Environmental Management will generate around Rs 40 Crores/annum. The added co-generation power capacity will result in an annual cost reduction of Rs 30 Crores towards the power and steam costs. Enhancing the wood pulp production from 60 TPD to 200 TPD will be a prudent idea to curtail the manufacturing costs apart from making the wood street viable for Oxygen Delignification (ODL) Elemental Chlorine Free (ECF) Bleaching, Conventional Chemical Recovery Plant (CRP), which at the present capacity are not technoeconomically viable. The added chemical pulping capacity of 140 TPD will fetch additional annual contribution to the tune of Rs 40 Crores.. The objective of the proposed proposal is therefore not the production capacity expansion but balancing the existing facilities by expansion in the wood pulping street, Co-generation Power Capacity to make the Convention Chemical Recovery Plant (CRP), Oxygen Delignification (ODL) and Elemental Chlorine Free Bleaching (ECF) Sequence feasible for wood street which otherwise is not technically feasible at 60 TPD capacity. The technologically being proposed is far superior from environmental point of view in comparison to existing technology in the wood pulping street. The proposed project is also aimed to further reduce the environmental impact of existing agro-street by implementation of Oxygen Delignification (ODL) and Partial substitution of chlorine with chlorine dioxide. Apart from giving direct and indirect employment to local people, improving the social and infrastructural status of the area around the mill, it will reduce the dependence of the mill on imported hard wood pulp thus limiting the outflow of the cash from the country. The Regional Director, MOEF, Chandigarh has been monitoring the compliance of the conditions of previous Environmental Clearance (No. J-11011/344/2008-IA-II (I) dated 1/1/2009). In this regard, a compliance report has been also issued by the Regional Office of the Ministry vide Letter No /2009-RO (NZ)/6113 dated 25/7/2014 confirming compliance by the proponent company. The implementation of the above, on one side will improve the profitability of the Company while on the other side, will drastically reduce the impact on the environment. Therefore, Kuantum Paper Ltd s proposal is both environmentally and economically positive project. 7

10 2. Introduction to the Project/Background Information 2.1. Identification of the Project and Project Proponent Kuantum Papers Ltd (Earlier ABC Paper Ltd) was set up in 1980 to manufacture Writing and Printing Paper. Kuantum Papers Ltd. has its operations at Sailakhurd in Punjab in North India, adjacent to the main State Highway SH-24, and is spread in an area of 257 acres. The plant is a fully integrated facility to make Paper from Agro and Wood based pulp. Pulping is done from various kinds of agricultural residues like Straws and Baggasse, and Wood apart from using purchased hardwood and Soft wood pulp. Current capacity of plant is to produce tonnes per annum (450 TPD) of Writing and Printing Paper. In view of the strong fundamentals of the paper business and its growth potential, the management, in the year , had undertaken a strategy to expand the paper business and sustain its competitiveness through capacity enhancement and cost reduction initiatives. The management implemented the Mill Expansion Programme covering setting up of: Chemical Recovery Plant, Co-Generation Power Plant, Wood Pulp Street, Paper Machine IV, Waste Paper/Purchased Pulp Pulping Street after obtaining necessary Environmental Clearance from Ministry of Environment and Forests (MoEF), New Delhi. The above expansion tripled the capacity of plant from 150 TPD to the existing 450 TPD, and enabled Kuantum to achieve economies of scale, reduce cost of production, enhance paper quality and employ an eco-friendly manufacturing process. This has propelled Kuantum to become one of the lowest cost paper-producer in its segment. Presently, Kuantum Papers limited is operating at a capacity of 300 TPD using both wood and agro-residues due to negative cost implications of using imported/purchased pulp for additional 150 TPD capacity. Kuantum primarily produces Writing and Printing Paper, Creamwove paper ranging from 49 Grams Per Square Meter (GSM) to 140 Grams Per Square Meter and SS Maplitho paper in the range of 60 Grams Per Square Meter to 130 Grams Per Square Meter. The company has created strong brands and differentiates its products based on quality. Some of the brands are K-Gold, Kappa G and Krest for Writing and Printing Paper, Kroma for Colour Printing Paper, and Keon for Copier paper. After having established stable operations and having become a large player in the domestic Paper industry, Kuantum is currently planning implementation of following major projects to enhance the profitability and improve the ecological footprint of the company. 8

11 Expansion of the wood pulping street from existing 60 MT to 200 MT/day to make the capacity compatible and feasible for implementation of Elemental Chlorine Free (ECF) Process. The existing bleaching sequence in the wood street is XCEopHH. After Expansion, the bleaching sequence will be Oxygen Delignification followed by XD0EopD1. This expansion will eliminate the need of using purchased pulp to the tune of around 140 TPD for operating the plant economically at its full capacity. Out of 450 TPD Installed capacity, presently, the mill has the capacity to produce ii) 300 TPD paper with wood and agro pulp supplemented with imported hardwood & softwood pulp and fillers ii) 150 TPD paper with purchased pulp/fibre supplemented with fillers. Upgradation and modernization of existing agro pulping street by implementing Oxygen Delignification and Partial Substitution of Elemental Chlorine with Chlorine Dioxide to further reduce chlorine consumption in agro-pulping street. The present bleaching sequence in agro street is XCEopHH. After upgradation and modernization the bleaching sequence will be XC/DEopHH. Installation of Conventional Chemical Recovery Plant (CRP) with capacity of 350 MT Black Liquor solids/day. This will be in addition to existing conventional Chemical Recovery Plant (CRP) of 230 MT Black Liquor solids /day. Expansion of Power Co-generation capacity from existing 17.5 MW to 28 MW by installation of 80TPH Power Boiler and 12 MW turbine. The existing 1.5 MW turbine will be abandoned. The above major projects will also be complemented with supporting projects namely Lime kiln Plant, up-gradation of Effluent Treatment Plant and any other miscellaneous addition/upgradation to meet the guidelines of Corporate Responsibility for Environment Protection (CREP) issued by Ministry of Environment and Forests Brief Description of nature of the project The proposed project is meant for upgradation, modernization and expansion of existing facilities to operate the mill more economically and more environmental friendly. There will be no change in the paper manufacturing capacity of the plant with implementation of the proposed project. 9

12 The proposed project falls under Category A as per EIA Notification dated 14 th September, 2013 and amendment dated 1 st December, Need for the project and its importance to the country and or region India accounts for 15% of the world population but consumes only 3% of the global paper production. At a per capita consumption of 9kgs per annum, it is extremely low, compared to the world average of around 55kgs per annum. Opportunity India consumes 3% of world paper while it has 15% of the world population The total paper production capacity in India is currently at 12 million tonnes per annum. Each increase of 1kg per capita translates into an additional capacity requirement of 1 million tonne per annum, which depicts a phenomenal opportunity. The paper market in India is segmented as follows: Indian Paper Industry poised to grow at CAGR of 6.5%+ in the current decade Growth in education, increase in corporate spending on stationery will drive demand for Writing and Printing paper in the coming years. Boosted by the Government s thrust on education and literacy, rise in organized retail, urbanization and growth in the economy and demand for better quality paper, the Writing and Printing paper segment is poised to grow at Compounded Annual Growth Rate of 6.5% per annum over the next 5 years. 10

13 Source: CRISIL E: Estimated; P: Projected The above figures encourage the existing mills to improve the ecological footprints while growing to compete in the growing paper market. Kuantum s vision is to control 5% of market share by Demand Supply Gap India s paper industry is expected to grow at 6 to 7 percent year over year, with the packaging industry poised to grow at 22 to 25 percent annually. Advances in education, a fast-growing middle class, strong growth in sectors like fast-moving consumer goods (FMCG) pharmaceuticals, liquor, cosmetics, and the like and organized retailing are the main drivers of demand for paper and packaging products. Per capita consumption of paper in India remains woefully low at 9.9 kgs (See Figure 1), compared to 349 kg in the United States and 164 kgs in the European Union in Per capita consumption of paper has almost doubled in the last decade. India has 15 percent of the world's population, but consumes less than 3 percent of the world s paper. The upstream market demand for paper products, such as tissue paper, tea bags, filter paper, lightweight online coated paper, medical-grade coated paper, etc., is growing as well. These developments are expected to give a significant boost to the growth of the industry. 11

14 Meeting the growing demand will likely require a correspondingly significant investment in both new machines and upgrading of existing facilities. Currently, a small percentage of the demand is being met by imports due to the inability to produce certain segments profitably in India. India also allows 100 percent foreign direct investment (FDI) in this sector, making it an attractive landscape for foreign investment one of the keys to growing the paper industry. For writing paper, elasticity of consumption has been taken at 0.9. Taking the GDP growth at 9% during and beyond, the growth of demand for writing paper has been assumed at 8.1% per annum. With the growing demand in educational sector, elasticity of consumption of writing paper could be higher than one. However, despite a lower per capita consumption relative to other countries, increasing access to internet and substitution of writing/printing material by electronic mode, elasticity of consumption has been taken at Imports vs Indigenous Production Several economic factors and lifestyle changes are driving the growth of paper consumption in India. The government has increased focus on education and initiated several central and statelevel programs such as Sarva Siksha Abhiyan (Education for All) and Operation Blackboard. This has had a positive effect on India s literacy rate, which has increased by 9.2 percent in the last decade to reach approximately 74 percent in The result has been increased expenditure on 12

15 textbooks and notebooks, providing a good opportunity for paper companies. Additionally, with higher literacy levels, circulation of other print media, such as newspapers, has also increased. Increased corporate activity and lifestyle changes: Economic development and globalization have led to an increase in corporate activity and increased per-capita consumption of paper. At the same time, increased commercial activity has spurred demand for packaged goods. Lifestyle changes have also pushed up the demand for specialty paper, such as tissue papers. India is the second largest print market in the world, with a readership base of over 250 million. There are approximately 130,000 printing presses in India. The printing and packaging industry is growing at a compound annual growth rate of over 16.2 percent since Overall paper consumption in the baseline scenario is projected to increase to 16.5 million tons in and reach 25.3 million tons in In the alternative scenario, which appears to be more realistic, the consumption increases to 18.4 million tons in (the terminal year of the 12 th Plan) and to 43.9 million tons in Projected Consumption of Paper (Million Tons) Year Writing Paper Packaging Paper News Print Total Consumption Baseline Scenario

16 The estimates for production during the 12 th Five Year Plan ( ) and in the next 15 years have also been derived for both the alternate scenarios. Estimates of production of various paper grades based on wood, agro residues & recycled paper have also been projected. Projected Production of Paper (Million Tons) Year Wood Resources Agro Based Resources Recycled Paper Total Production Baseline Productions Export Possibility Exports of paper and paper products from India have not grown over the last three to four years in spite of steady increase in domestic production. This is primarily due to increasing domestic demand and low quality of finished product, making the products unsuitable for export to the developed markets. 14

17 Currently, exports form a very small proportion of paper production in India (2.1 percent) and are much lower than imports. Major export destinations today are markets in the Middle East, Africa, and South Asia. The top three countries by value of exports are Nigeria, Sri Lanka, and the United Arab Emirates. These countries import paper, paperboard, and printed material. However, exports to developed markets in Europe and North America are restricted to books and printed material only. With further increase in production capacity in India, there is scope for increased exports to the traditional export markets. In addition, by improving quality through better machinery, processes, and raw materials, there is further scope for exports of high-value-added paper products to quality-sensitive markets in Europe and North America. To address the concerns around labour and the challenging process of getting approvals in India, the government has recently approved a National Manufacturing Policy (NMP) that aims to increase the manufacturing sector s share in the economy to 25 percent from 16 percent and create 220 million jobs by The policy will promote this by facilitating national manufacturing investment zones, which can offer faster clearances. The policy also aims to ease the process for exiting the zones, along with providing companies flexibility while hiring and laying off. The NMP is expected to boost foreign investment; however, it is too early to predict the effect on paper industry. It will likely be dependent on the location of the new NMP zones, as paper industries require easy access to raw materials, coal, water, and other resources Domestic/Export Markets The paper produced by Kuantum is typically used in the manufacture of notebooks, textbooks, publications, computer stationery, invoices, pamphlets, newspaper supplements, diaries and calendars. Some of the stationery items made using Kuantum products are also exported. Kuantum has an elaborate marketing network throughout India, selling through its network of 85 distributors. Kuantum s Product Segmentation Kuantum s Region-wise Market 15

18 Sales Value % Sales Value % KAPPA G K Gold KREST North Central West 2.8. Employment Generation (Direct and Indirect) due to the project The proposed project is expected to give direct employment to around 300 persons in Kuantum Papers Ltd. The projected head count on account of proposed Expansion cum Modernization/Upgradation Plan is depicted in the following Table. Projected Head Count S.No. Department Staff Worker Temp Worker Total 1 Pulp Mill Elect Engg Mech Engg-Pulp Mill Mech Engg-CRP Mech Engg -Others Instrumentation Utility R&D and ETP Chemical Recovery Lime Kiln PG Plant Total

19 Apart from direct employment to above skilled and un-skilled manpower, the proposed expansion is expected to give indirect employment to many more people due to increased inflow of raw materials and other inputs to the mill Project Description 3.1. Type of Project including interlinked and independent projects, if any This is an up-gradation, modernization and expansion project with respect to existing facilities aimed at improving the efficiency, profitability and ecological footprint without increase in the installed capacity of the end product. There are no interlinked projects related to this project Location The proposed project is to be implemented at the existing factory premises of the Kuantum Papers Ltd situated at Village Saila Khurd, Tehsil Garhshankar, Distt. Hoshiarpur, Punjab. Details pertaining to geographical location, climate, demographic features, socio-economic aspects etc are summarized as under: Particulars Details Geographic Location of the Mill Bewteen Latitude: 30 o 9 N & 32 o 5 N & Longitude: 75 o 32 E & 76 o 12 E; Distance from State Capital Chandigarh: 100 km Nearest Railway Station Saila Khurd Railway Station (approx. 1.0 km in South direction); Phagwara Railway Station (approx. 30 km in SW direction) Nearest National Highway Well connected to Chandigarh, Pathankot, Jallandhar by road Nearest Airport Chandigarh, 110 Kms from the Project Site Physiographic Characteristics Sub mountainous, Situated in Bist Doab of Doaba region of the state Water Bodies Except Bist Doab Canal which gets water from Sutluj river from time to time, no significant river body exists in 10 km study area. Climate Mild Climate, Three Characteristic Seasons: Summer ( April June), Rainy (July September), Winter ( October March) ; Coldest Month : December & January ; Hottest Months : May & June ; Humidity : High ; Rainfall : Annual Avg: 1125 mm (75% July Sept, 15% Jan- Feb) Prevalent wind Corridors- NW,NNW,WWN Land Use & Agriculture Predominant land use pattern: Agriculture ( 60 % of total land mass) 17

20 Main crops : Wheat Industrial Use - Very nominal Forests 30% Major plants :Kinnow, Mango, Peach Litchi Pear, Guava Irrigation facility : Canals & tube wells Industry Medium scale : 33, Small scale : 9109 Demographic Features Total Population: Sex Ratio: Male : & Female: Popular language: Punjabi & Hindi Principal Staple Food: Wheat, Rice & Pulses Amenities Primary source of Drinking Water: Dug wells & Tube Wells Medical facilities: Hospital at Sailakhurd, Private Practitioners at Sailakhurd Schools & Colleges: Available Post Office: Available Telephone facility Available Occupation Major Occupation: Cultivators or agricultural laborers (36.3 %) Places of Historical & Tourist Nil (within 15km ) Importance The city & town area of Hoshiarpur District in which Kuantum Papers Ltd is located are indicated in Fig 1.1. The location map indicating road network is depicted in Fig

21 Fig 1.1 City &Town Area of Hoshiarpur District 19

22 Fig 1.2. Location of Kuantum Papers Ltd 20

23 3.3. Details of the Alternate Site considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. This is an expansion, upgradation and modernization of the existing pulp and paper manufacturing facility and hence no alternate site have been taken into consideration Size or Magnitude of operation Kuantum Papers Ltd is proposing the following: 1. Expansion of the wood pulping street from existing 60 MT to 200 MT/day to make the capacity compatible and feasible for implementation of Elemental Chlorine Free (ECF) Process. The existing bleaching sequence in the wood street is XCEopHH. After Expansion, the bleaching sequence will be Oxygen Delignification followed by XD0EopD1. 2. Upgradation and modernization of existing agro pulping street by implementing Oxygen Delignification and Partial Substitution of Elemental Chlorine with Chlorine Dioxide to further reduce chlorine consumption in agro-pulping street. The present bleaching sequence in agro street is XCEopHH. After upgradation and modernization the bleaching sequence will be XC/DEopHH. 3. Conventional Chemical Recovery Plant (CRP) with capacity of 350 MT Black Liquor solids/day. This will be in addition to existing conventional Chemical Recovery Plant (CRP) of 230 MT Black Liquor solids /day. 4. Expansion of Power Co-generation capacity from existing 17.5 MW to 28 MW by installation of a 80TPH Power Boiler and turbine. 5. The above major projects will also be complemented with supporting projects namely Lime kiln Plant, Producer Gas Plant, Utilities, Up-gradation of Effluent Treatment Plant and any other miscellaneous addition/upgradation to meet the guidelines of Corporate Responsibility for Environment Protection (CREP) issued by Ministry of Environment and Forests Project Description with Process Details The following tables summarizes the various components of the proposed expansion, up-gradation, modernization and environmental Management by Kuantum Papers Ltd 21

24 Table 1: Expansion Activities S.No. Particulars Existing Installed Capacity EC No: J /344/2008-IA- II(I) dated Jan 1, 2009 Proposed Expansion in Installed Capacity Total Installed Capacity after Proposed Expansion Remarks 1 Paper 450 TPD TPD The capacity of 2 Agro-Pulp 165 TPD TPD ancillary 3 Hard Wood Pulp 60 TPD 140 TPD 200 TPD equipments such 4 Waste 20 m m3 as boiler (80 TPH), 5 Paper/Wood Pulper Co-generation Power 17.5 MW 12 MW 28 MW (Existing 1.5 MW Turbine will be abandoned) utilities etc will also be enhanced to match the production capacities. 6 Expansion of ETP m3/day m3/day m3/day The main highlights of the expansion activities are: The Paper manufacturing capacity of the mill as on date is 450 TPD. This will remain unchanged after the proposed expansion. There is no change in the agro-residue pulping capacity. There is only change in the furnish. Purchased Pulp is being replaced with own hard wood pulp. Existing hard wood pulping capacity is 60 TPD. The proposal is to expand the hard wood pulping capacity to 200 TPD. Existing Effluent Treatment Plant will be expanded to take volumetric m3/day effluent. Table 2. Modernization and Up-gradation: S.No Particulars Existing Facility EC No: J /344/2008-IA- II(I) Jan 1, 2009 Proposed Upgradation/Modernization 22

25 1 Agro- Pulping Street 2 Hard Wood Pulping Street 3 Cogeneration Power Continuous Digester Convention pulp washing and bleaching system 3 Nos Stationery Vertical Digesters Conventional washing bleaching. pulp and 17.5 MW ( 10MW, 5 MW, 1.5 MW, 1 MW) 3 Boilers (2 Nos 26 TPH & 1No 60 TPH) 4 Chemical Chemical Recovery Recovery Plant : 230 MT Black Plant Liquor Solids/day Capacity: For recovery of ca ustic soda (White Liquor) Solids and recovery of Soda: 100 MT BL Solids: For recovery of Soda Ash; Lignin Precipitation System for recovery of 25 MT Lignin per day from 140 MT Black Liquor Solids/day The main highlights of the up-gradation and Modernization activities are: Addition of one more continuous digester to debottleneck the existing Continuous digester resulting after upgradation due to change in pulping from soda process to sulphate process Addition of Oxygen Delignifcation (ODL) Stage, Modifications in bleaching lines to make the material of construction suitable for partial substitution of elemental chlorine with chlorine dioxide to reduce elemental chlorine usage in agro pulping street. The existing Bleaching sequent XCEopHH will be modified to XC/DEopHH. Installation of additional three (3) vertical digesters to enhance the bleached pulping capacity to 200 MT /day. Addition of Oxygen delignification stage. Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free (ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up gradation, the bleaching sequence will be ODL followed by ED0EopD1. Installation of 12 MW new turbine. The operation of 1.5 MW turbine will be discontinued. With the installation of new 12 MW turbine, the total Co-generation power capacity will be 28 MW. One power Boiler with capacity of 80 TPH will be added. One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed. Existing Fluidized Bed Reactor, presently being operated to process 100 MT Black Liquor solid will be discontinued and will retained as Standby equipment. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. Existing Recovery Boiler will be modified to make it suitable for black liquor generated from sulphate process Lignin Precipitation System (LPS) will be operated only to meet the market demand of lignin for specialized application. The filtrate(sodium Sulphate) of Lignin Precipitation System (LPS) will be used as make up chemical in Chemical Recovery plant. Addition of one more continuous digester (80 TPD) in the Agro-pulping street to debottleneck the existing continuous digester resulting after up-gradation due o change in pulping from soda process to sulphate process. 23

26 Addition of Oxygen Delignification (ODL) stage in the existing agro-pulping Street. Modification in the agro street bleach plant to upgrade the bleaching sequence from existing XCEopHH to XC/DEopHH for substitution of elemental chlorine with chlorine dioxide. Installation of additional three (3) vertical digesters to enhance the bleached pulping capacity to 200 MT /day Addition of Oxygen delignification stage. Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free (ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up gradation, the bleaching sequence will be ODL followed by ED0EopD1. Existing 60 TPD wood street will be utilized to debottleneck agro-pulping washing street. Installation of 12 MW new turbine. The operation of 1.5 MW turbine will be discontinued. With the installation of new 12 MW turbine, the total Co-generation power capacity will be 28 MW. One power Boiler with capacity of 80 TPH will be added. One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. Existing 230 TPD Recovery Boiler will be modified to make it suitable for black liquor generated from sulphate process by addition of reduction zone. Existing Fluidized Bed Reactor, presently being operated to process 100 MT Black Liquor solid will be discontinued and will retained as Standby equipment. Lignin Precipitation System (LPS) will be operated only to meet the market demand of lignin for specialized applications. The filtrate (chemically Sodium Sulphate) of Lignin Precipitation System (LPS) will be used as make up chemical in Chemical Recovery plant. Electrostatic Precipitators (ESPs) will be installed in all the boilers as APCD. 24

27 Any other requirement specified by Ministry of Environment and Forests (MoEF) during Environmental Clearance, if any and also to meet guidelines of Corporate Responsibility for Environment Protection (CREP) will be a part of proposed up-gradation. A brief description of Paper Manufacturing Process involved presently at Kuantum Papers Ltd from raw material preparation to finished product including ancillary processes as well as the proposed expansion being planned by the mill is as under : Paper is made from cellulosic fibres and so virtually any tree, plant or lignocellulosic material can be a source of paper making fibres. However, since the strength properties & performance of the paper in writing & printing are the criteria for acceptance in end use application, only selected raw materials are used commercially for paper making. Various Soft wood, hard wood, agro-fibres are used in paper making separately or in combination depending on the properties desired in the end product. Lignocellulosic raw materials are composed of cellulose, hemicellulose and lignin part from extractives. The components which need to be removed to convert lignocellulosic raw material into pulp is lignin. However, other components viz extractives, a significant part of hemicellulose and a little cellulose is also lost during various stages of the pulp and paper making process. Kuantum Papers Ltd uses bagasse, wheat straw, sarkanda, kahi grass, bamboo, Eucalyptus, Poplar, veneer Chips etc alongwith purchased hardwood and Soft wood pulp as raw material for paper manufacture. Coal, Rice husk & raw material dust is used as fuel in power boiler for the power and steam. Besides this there are several other raw materials like caustic soda, Oxygen, bleaching chemicals, fillers, paper chemicals and other functional chemicals such as cooking aids, defoamers, coagulants etc used for various purposes. After implementation of the proposed project, the additional chemicals required for manufacturing process include oxygen, Sodium sulphate, chlorine dioxide etc. The major steps involved in Pulp and Paper making include Raw material preparation, Cooking/Pulping, Pulp screening, Pulp washing, Pulp bleaching and Paper making. Various ancillary processes are also involved in pulp and paper manufacturing such as Chemical Recovery Process, Utilities, Effluent Treatment and Emission Control Processes. Different processes are used for preparation for raw material depending on the type of raw material used, to make it compatible with subsequent process steps. Chipping and dedusting are the steps performed for woody raw materials by Kuantum Papers Ltd whereas agro-fibres are subjected to 25

28 shredding, dry dedusting and wet washing to remove sand, dust and other contaminants of no interest in papermaking. The organic dust and dust recovered during raw material preparation is utilized as fuel in the multifuel boilers The cooking or pulping process is aimed at removal of lignin and extractive from the raw material while retaining most of cellulose and a part of hemicellulose as well which plays a critical role in fibre to fibre bonding during paper making process. Different pulping processes are used depending on the source of fibre used. Kraft/Sulphate pulping (Sodium hydroxide and Sodium Sulphide) is preferred for hard woods and soft woods whereas alkaline pulping (Sodium hydroxide) is most common for agrofibres. However, presently, Kuantum Papers Ltd is using alkaline process for pulping of both agroresidues and woody raw materials During pulping, the raw material is mixed with cooking chemicals in digesters ( Vertical Digesters for wood pulping and Horizontal Continuous Digester for Agro-residues) and subjected to heating at a particular temperature & pressure for a specified time thereby leading to disintegration into fibrous mass or pulp better known as brown stock. The degree of delignification is the parameter for controlling and monitoring of this step which is expressed as Kappa Number. The Kappa Number of the pulp is the direct indication of the amount of residual lignin in the cooked pulp. Cooked pulp also contains uncooked fibre bundles and knots, which are removed using different types of screening systems and recycled back as a fuel and/or raw material. Cooked pulp or brown stock also contains cooking chemicals and dissolved lignin which are separated from the fibres by a process called brown stock washing. Brown stock washing is performed in a series of steps by counter-current washing using brown stock washers or other equipments such as wash presses. The lignin and chemicals are separated as a liquid stream known as Black Liquor leaving behind pulp mass called as unbleached pulp. The black Liquor is separately processed for recovery of energy and chemical in a Chemical Recovery Process. The unbleached pulp recovered from washing is still brown and is suitable only for unbleached grades of paper such as packaging grades. For making this pulp suitable for white and coloured paper, bleaching is required to remove complete removal of residual lignin. This is performed in various stages starting with Oxygen delignification (ODL) (wherever installed) followed by bleaching. During oxygen delignification, the pulp is treated with molecular oxygen under alkaline conditions. The delignified pulp is washed to recover the lignin rich effluent called black liquor which is utilized in chemical recover process to regenerate chemicals and steam. The oxygen delignification facilitates removal of lignin from the pulp to the tune of 30%. Oxygen delignification significantly reduced the 26

29 water pollution load i.e COD. BOD and AOX since all dissolved lignin is recovered and used in chemical Recovery process rather than discharging as effluent. Presently, Oxygen Delignification (ODL) stage is not a part of washing/bleaching sequence at Kuantum Papers Ltd. However, in the proposed upgradation, Kuantum Papers Ltd has proposed to implement Oxygen Delignification (ODL) Stage as a part of its Environmental Management Plan in both agro-residues and wood streets. The oxygen delignified pulp/washed Pulp (where ODL is not Installed) is further bleached in several stages involving use of various combination of chemicals viz Chlorine, Chlorine dioxide, Sodium Hypochlorite, Hydrogen Peroxide, Ozone etc. Modern bleaching sequences do not make use of elemental chlorine and are therefore Elemental Chlorine Free (ECF). ECF Plants make use of chlorine dioxide which is more eco-friendly on one hand due to significant reduction in chlorinated toxic compounds in the effluent while preserving pulp strength on the other end. Total Chlorine Free (TCF) bleaching sequences do not make use of any chlorine compounds. Presently, Kuantum Papers Ltd is following XCEopHH sequence in both agro-residues and wood street for bleaching of pulp. However, the company has proposed to implement the following bleaching sequences as a part of its upgradation and Environmental Management plan: i) Wood Street: ECF Bleaching Sequence i.e XD0EopD1 ii) Agro-residues Street: XC/DEopHH, for substitution of chlorine with chlorine dioxide. The bleached pulp is prepared for paper machine section by refining to the desired level for fibrillation to improve the bonding of fibres in paper machine followed screening and addition of fillers & various performance chemicals. This process is commonly known as stock preparation in paper industry. Water is added to the pulp to dilute it to less than 1% slurry which is further cleaned in centri-cleaners. The dilute pulp stock is fed into the wet end of the paper forming machine. During paper making, the dilute pulp slurry passes through the head box where fibre slurry is distributed uniformly across the width onto wire mesh. The water is removed in the wire section and the fibres start spreading and consolidating into a thin mat. This whole process is known as sheet formation. The wet sheet of the paper is carried into the press section where more water is removed by pressure rollers. The paper passes over steam heated dryer cylinders and the drying takes place. Coating and 27

30 other surface treatments are also given to the speciality papers. The calendaring is performed to make the paper smooth and finally paper is wound on the roll. The roll is further rewound, cut into smaller reels in slitter, sheeted, finished and packed. The process flow charts of the agro-residues and wood street after proposed expansion and upgradation are attached as under: 28

31 PROCESS FLOW OF UPGRADED PULP MILL (AGRO STREET) Raw Material ( Yard Area) Depither Wet Washing System Continue Digester Blow Tank Knotter Screens/ Cleaners Brown Stock Washer 1 Brown Stock Washer 2 Seal tank Seal tank Black Liquor to Recovery Plant Hot Water Brown Stock Washer 3 Brown Stock Washer 4 Unbleached Storage Tower Seal tank Seal tank Pressure Screens Decker washer (Pre ODL) O2 reactor ( 1 No) O2 Blow tank Post ODL Washers ( 2 Nos) D / Cl2 Tower D / Cl2 Washer Eop Tower Eop Washer H1 Tower H1 washer H2 Tower H2 Washer HD Storage Tank 29

32 PROCESS FLOW DIAGRAM OF PROPOSED PULP MILL( WOOD STREET) Raw Material ( Yard Area) Chipper Chip screens Vertical Digesters Blow Tank Knotter Screens Hot Water Brown Stock Washer 1 Brown Stock Washer 2 Brown Stock Washer 3 Seal tank Seal tank Seal tank Black Liquor to Recovery Plant Unbleached Storge Tower Pressure Screens Centi Cleaners Decker Washer ODL Reactors ( 2 Nos) Post ODL Washer ( 2 Nos) D0 Tower D0 Washer Eop Tower Eop Washer D1 Tower D1 Washer HD Storage Tower 30

33 Various ancillary processes are also an integral part of paper manufacturing process. The effluent from pulp washing known as Black Liquor containing dissolved organics and inorganics is processed in Chemical Recovery Process (CRP). Kuantum Paper Ltd is following method to process black liquor generated during paper making process: Black Liquor from Wood Pulping Street: The black liquor from wood street is processed in Fluidized Bed Reactor (FBR) by concentrating in the evaporators followed by burning in the reactor. The product thus obtained on burning in reactor under optimized conditions is called and recovered as Soda ash granules. Soda ash is sold to Sodium Silicate manufacturers as raw material. After proposed Expansion of the wood street, the wood black liquor will be processed in the newly process 350 TPD Conventional Chemical Recovery process for recovery of Caustic Soda (White Liquor) Black Liquor from Agro-residues pulping Street: The black liquor from Agro-street is processed in the convention chemical recovery process (CRP) for recovery of energy and chemicals (Caustic Soda in the form of White Liquor). Four major steps are involved in chemical recovery process: The black liquor is around 10% solids from pulp mill and this needs to be concentrated to 60-65% solids before it could be burnt in the recovery boiler. Therefore, evaporation is carried out using multiple effect evaporators. The concentrated black liquor is burnt in the recovery boiler resulting in generation of steam. This steam is passed through turbine for generation of power. The inorganics are recovered as molten salt i.e smelt which is dissolved in dilute alkali and the resultant solution thus obtained is called as Green Liquor. The green liquor is composed mainly of sodium carbonate and sodium sulphide. The green liquor is clarified and reacted with Calcium Hydroxide to regenerated sodium hydroxide which is known as White Liquor and this process is called as Causticizing. The white liquor is used in the pulping process. During causticizing reactions, calcium carbonate is also generated as a by-product in the form of mud known as lime mud. The lime mud is washed and burnt in Lime Kiln to regenerated lime i.e Calcium Oxide which is in turn reused in the causticizing. The flow chart of the Conventional Chemical Recovery Plant as followed at Kuantum Papers Ltd. is attached below: 31

34 FLOW CHART-CHEMICAL RECOVERY PLANT Black Liquor from Pulp Mill Vibro Screen. EVAPORATOR PLANT Inlet Concentration 10.5% soldis, Outlet % Solids - 65 % LP Steam from power house 1A,1B,1C are finishers bodies, Lamella type Primary Condensate return to power house, EVAPORATOR PLANT Vapour of Finishers body used as a heating 6th 5h,4th,3rd& 2nd effect are long tube falling film vertical Secondary Condensate Send to pulp mill & Recausticizing plant source for other effect Vapour Of 6th effect enter in the surface Surface Condenser 35*C Temp.colling Water enters in the Surface Condenser 45*C temperature water returns in the cooling tower 65% solids Semi concentrated black liquor stores in 2 nos of SCBL Storage tanks C H I M Recovery Boiler FLUE GAS ESP Inlet temp 145* C & Outlet temp 125*C N E Y T Tertiary Air Secondary Air Primary Air Recovery Furnace, 65% Concentrated black Liquor burns in the furnace avg Temp of black liquor is 131 *C Superheated steam U R B I N RECOVERY BOILER E SMELT Weak Wash Liquor MDT TANK ESP ASH Recausticizing Plant Green Liquor clarrifier Green Liquor Storage Tank Dregs Washer Dregs Lime Godown Constant Head Tank Lime From table Feeder Slaker House Rake Classifier Dregs Trolly Causticizer No 1 LP Steam Causticizer No 2 RECAUSTICIZING PLANT Causticizer No 3 LP Steam White Liquor Clarifier White Liquor Storage Tank Pulp Mill LP Steam Lime Mud Washer 1 Weak White Storage Tank MDT Tank LP Steam Lime Mud Washer 2 Overflow Relay Tank LP Steam Lime Mud Washer 3 Overflow Relay Tank Lime Mud Storage Tank Mud Filter Filtrate Lime Kiln for MUD Producer Gas plant Apart from Fluidized Bed Reactor (FBR) and Conventional Chemical Recovery Plant (CRP). Kuantum Papers Ltd have also installed a state of the art Lignin Precipitation System (LPS) Plant in 32

35 collaboration with a Swiss Company viz. Greenvalue S.A under Clean Technology Scheme of Ministry of Environment and Forests (MoEF) for recovery of high purity Lignin from Black liquor. This is utilized only to produce lignin for high value application ranging from phenol replacement in resins to animal health applications depending on the requirement from Greenvalue S.A under 100% buyback arrangement. The various utilities involved in the pulp and paper making include Boilers for steam generation, turbines for power generation, DM water plants, soft water plants, cooling towers, Air compressors, bore wells etc. The effluent treatment process at Kuantum Papers Ltd is comprised of clarifiers at various stages of treatment, bio-methanation for wet wash effluent, activated sludge process for aerobic treatment, gravity thickeners/sludge presses for dewatering of primary sludge, decanters for dewatering of secondary sludge. The recovered sludge is sold to Paper Board Manufcaturers. The Company has also installed 4 Nos of paper Board machines to produce 15 TPD paper board based on ETP sludge to environmental friendly disposal of ETP Sludge even when paper board manufacturers do not purchase ETP sludge for any reason. Effluent Treatment plant will be upgraded from existing m3/day effluent to m3/day effluent as a part of Environmental Management plant in the proposed project. Air emission control system comprises of Electrostatic Precipitators in all the boiler with online SPM monitors directly connected to Punjab Pollution Control Board Servers. Boiler ash from coal burning is used by cement manufactures whereas filling of low lying areas and brick manufacturing is the common practice adopted for boiler ash from rice husk. Lime sludge is burnt in the state of the art Lime Kiln based on Turbo Spin Flash Calcination to recover Calcium Oxide for reusing in re-causticizing process. The expansion of the existing Lime Kiln is also a part of Environmental Management Plan in the proposed expansion plan. 33

36 3.6. Raw Material required with estimated quantity, likely source, marketing area of the final product/s, mode of transport of raw material and finished product. Kuantum Papers Ltd uses bagasse, wheat straw, sarkanda, kahi grass, bamboo, Eucalyptus, Poplar, veneer Chips etc alongwith purchased hardwood and Soft wood pulp as raw material for paper manufacture. Coal, Rice husk & raw material dust is used as fuel in power boiler for the power and steam. Besides this there are several other raw materials like caustic soda, Oxygen, bleaching chemicals, fillers, paper chemicals and other functional chemicals such as cooking aids, defoamers, coagulants etc used for various purposes. Apart from this, after implementation of the proposed project, the additional chemicals required for manufacturing process include oxygen, Sodium sulphate, chlorine dioxide etc. The most of these raw materials are to be sourced from the existing supplier. The quantitative details of the major raw materials/finished are attached as under: S.No Particulars Requirement/annum Source and Mode of Transportation 1 Finished Product 1 Agroresidues 2 Woody Raw Materials 3 Purchased Pulp Existing TPA (Currently operating at TPA) After Expansion (Estimated) TPA Existing Dealer Network, Through Trucks and Containers TPA TPA Wild Growth/Crop Waste, Transported in tractor trolleys/trucks TPA TPA Bamboo from HP, Wood from Farmers and contractors, Vineer waste from Plywood industry. Transported in Trucks TPA (Being Used to produce 300 TPD Paper) (Reqd to operate at full capacity to produce 450 TPD Paper) TPA Mostly imported. Some indigenous quantities also purchased. Transported to mill in containers 4 Fillers TPA TPA Onsite Manufacturing by utilizing flue gas from the boilers. 5 Cooking Chemicals (Caustic & white Liquor) 6 Total Chlorine (Elemental & TPA TPA Recovered in the CRP. Make Up quantity purchased from Market 4650 TPA 3050 TPA Sourced from Caustic and Chlorine Manufacturers in Punjab. Transported in Trucks. 34

37 Hypochlorite ) 7 ClO2 Nil 1650 Onsite Generation 9 Oxygen 445 TPA 2850 Presently purchased in tanker. Onsite Generation after expansion. 10 Multi fuels Fuel (Calculated as Equivalent to Husk) Coal purchased from CCL, Open Market. Husk purchased from rice shellers. Other bio-fuels from farmers, in-house generated raw material dust. Coal transported through railways and trucks. Husk Transported in trucks and Tractor trolleys. 11 Water m3/annum ((for 300 TPD Paper), 70 m3/t of Paper m3/annum, 65 m3/t of paper Deep bore-wells within factory premises 3.7. Resource Optimization/Recycling and reuse envisaged in the project, if any, should be After implementation of oxygen Delignification and chlorine dioxide bleaching, the pollution load in the expected to go down and hence improvement in the quality of final treated effluent in terms of both colour and COD. The mill has planned to utilize a part of treated effluent for wet washing of raw materials for replacing the good water presently being used by the mill. This is expected to save 5 m3 water per ton of paper. Therefore, the quantity of fresh water consumption projected after implementation of the proposed plan, is 65m3 per ton of paper against existing 70 m3/ton of paper. Further, it would also be possible to implement water loop closure in some of the sections of the pulp bleaching plant Availability of water, its source, Energy/power requirement and source During previous Environmental Clearance in 2009, Kuantum Papers Ltd had obtained permission to withdraw m3/day of ground water which is equivalent to 89 m3/ton of paper but with various water conservation measures adopted in the mill, the company has been able to reduce the water consumption to 70 m3/ton of paper. With 65 m3 water/ton of paper as estimated after proposed plan, the total fresh water requirement per day will be m3 and the capacity to withdraw this quantity is already available with Kuantum Papers Ltd. The source of water is deep bore-wells installed with the permission of Central Ground Water Board. 35

38 The company has its own power generation apart from supply from Punjab State Electricity Board. In the proposed plan, the existing 17.5 MW co-generation capacity will be enhanced to 28 MW capacity Quantity of wastes to be generated (liquid and Solid) and scheme for their Management Disposal The following are the quantities of the wastes to be generated and scheme for their management and disposal. Liquid Wastes: The quantity of the water water generation after proposed expansion will be around m3/day. The existing ETP ( Activated Sludge Process) has the volumetric capacity to treat m3 effluent per day. The capacity of the ETP will be enhanced to treat m3 effluent per day. The proposed Flow Chart of ETP is attached below: FLOW CHART-EFFLUENT TREATMENT PLANT Bio-Clarifier Volume 1795 COD 224 BOD 28 TSS 140 Clarified Effluent recycled back to wet washing system Volume, m Clarified wet washing Wet washing Effluent effluent to ETP Volume, m Volume, m Wet Volume, m COD, ppm 595 COD, ppm 4850 Washing COD, ppm 3298 Volume, m UASB Reactor BOD, ppm 138 BOD, ppm 1410 Clarifier BOD, ppm 846 COD, ppm 2432 TSS, ppm 459 TSS, ppm 2070 TSS, ppm 920 BOD, ppm 582 TSS, ppm 3236 Activated Sludge Tank-1 Treated Effluent Combined Effluent Sludge Volume, m Volume Volume, m Total Wt, Kg Secondary (BD) Wet Washing COD, ppm 1751 COD, ppm 1138 Clarifier Treated Effluent Total Wt, Kg Total Wt, Kg Primary (AD) (AD) Clarifier Clarifier BOD, ppm 430 BOD, ppm 275 BOD, ppm 28 Sand Sand TSS, ppm 1019 TSS, ppm 722 TSS, ppm 43 Total Wt, Kg Total Wt, Kg (BD) 2723 (BD) 7933 Total Wt, Kg Total Wt, Kg (AD) 6808 (AD) Activated Sludge Tank-2 Volume 6200 Sludge From Primary and 3 Nos Sludge Press bioclarifier 1751 Tertiary Treament BOD, ppm No Decanter TSS, ppm 1019 Centrifuge Treated Effluent COD, ppm 229 BOD, ppm 17 TSS, ppm 7 Tertiary Clarifier Raw Material washing effluent consisting of mainly easily biodegradable matter alongwith a part of unbleached centricleaner effluent will be treated will be treated in the existing anaerobic reactor (UASB Reactor). The main advantage of the anaerobic treatment is the recovery of bioenergy in addition to reduced pollution load which will ultimately help the mill to reduce the operation cost of ETP. The biogas thus recovered will be used as fuel along with rice husk in the boiler 36

39 The other effluent streams mainly the bleach plant effluent, spills etc alongwith anaerobically treated effluent will be treated through modified ETP based on activated sludge process to meet the environmental discharge standards. The aerobically treated effluent from Activated Sludge Process followed by Secondary Clarifier will be further subjected to suitable chemical treatment to further reduce colour and suspended solids. The chemically treated effluent will be further clarified in a tertiary clarifier before using for plantation and irrigation. The treated effluent after meeting the norms stipulated by regulatory authority as indicated below will be used by mills itself for plantation and rest will be used by local farmers for irrigation of their land. Infact the use of treated effluent will reduce the dependence of farmer to some extent on ground water being used for irrigation purpose. The mill has already set up a good network for supply of treated effluent to farmers for irrigating an area around 2200 acres. The soil characteristics being irrigated with the treated effluent will be periodically monitored by the mill. Solid Waste: The solids waste generation after proposed expansion will be 20 TPD from ETP. The Mill has installed sludge thickening presses for dewatering of primary sludge. The Secondary sludge is thickened in decanters. ETP sludge is sold to board manufacturers. The mill has also installed 4 Nos Paper board machines to take care of ETP sludge disposal if it is not sold outside for any reason. Lime Sludge generation from Chemical Recovery Plant will be around 220 TPD. Lime sludge will be burnt in the Lime Kiln to recover calcium oxide. The capacity of the existing Lime Kiln will be enhanced by addition of one more Lime Kiln. Coal ash will be given to cement manufacturers. Capacity to manufacture bricks will be increased apart from land filling within premises as per CPCB guidelines. Quantity will depend on the quantum of husk used based on the price in comparison to coal. However, it will vary between MT per day. Raw material dust will be burnt in the multifuel boilers. The quantity will be around 15 MT per day. 37

40 The following is the summary of the various environmental safeguards planned under the proposed expansion, up-gradation and modernization plan. S.No Particulars 2. Water Consumption/T on of Paper 2. Waste water discharge /ton of Paper 3 Treated Effluent Parameters Prescribed limits/ Requirement Existing Status Proposed Safeguard/Management after Expansion Not specified After proposed expansion, the water consumption is expected to come down to 65 m3/ton of paper due to upgradation of equipment and modernization of the process Recycling of treated effluent to low value application where colour is not a limiting factor. COD: 350 ppm; BOD: 30 ppm ; TSS: 50 ppm; ph: ; SAR: 26 4 AOX Less than 1 Kg/ton of Paper 5 Installation of Lime Kiln Required COD < 250 ppm; BOD < 28 ppm; TSS < 50 ppm; ph ; SAR < Capacity of the ETP will be updraded from existing m3/day to m3/day to treat additional volume of effluent and maintain the parameters within prescribed limits. < 1 Kg/ton of Paper Will be maintained within prescribed limits. ODL and partial substitution of elemental chlorine with chlorine dioxide proposed in the existing bleaching sequence for agro-pulping street. ODL and ECF process proposed for wood pulping street. Lime Kiln Capacity required for existing pulping capacity is 80 MT (BD) Lime sludge for recovery of 45 MT CaO. The company has installed Lime kiln with capacity of 140 MT (BD) Lime sludge to recover 80 MT CaO. The capacity of the Lime Kiln will be upgraded to meet the requirement after expansion. 6 Green Belt 33% of total area 42% of total area 45% of the total area will be covered under green belt. 7. Stack Emissions < 100 mg/nm3 < 100 mg/nm3 ESPs will be installed in the proposed Boilers to meet the existing norms. 8 Odour Control System For mills using sulphur compounds Not applicable as mill is not using sulphate process Odour control system will be installed under proposed expansion.

41 9 Solid Waste (ETP Sludge) Disposal as per Hazardous Waste Rules Total Quantity Generated is around 12 MT per day. Being sold to Board Manufacturers. Board Mill for producing 15 MT Board have also been installed. 10 Boiler Ash Coal ash is given to cement manufacturers. Husk ash is being used for brick manufacturing and filling of low lying area as per CPCB Guidelines. Total Quantity Generation will be around 20 MT after proposed Expansion. Board Manufacturing within premises and sale to board manufactures will be used as mode of disposal. Coal ash will be given to cement manufacturers. Capacity to manufacture bricks will be increased apart from land filling within premises as per CPCB guidelines. 39

42 3.10. Schematic Representation of the feasibility drawing which gives information of EIA Purpose. Scope of Study: The study area will comprise of a core zone covering the project area and a buffer zone covering an area within 10km radius around the project site. The study will cover in brief the following chapters including Introduction, Project Description of the environment, Anticipated Environmental Impacts and mitigation measures, Analysis of alternatives, Environmental Monitoring program, Additional studies, Project Benefits, Environmental Cost-Benefit Analysis, Environment management Plan, Summary and Conclusion and Disclosure of Consultant. It will also include literature review, field studies, impact assessment and preparation of the EIA/ EMP document covering the disciplines of Land Use, Water Use, Demography & Socio-economics, Soils, Geology, Hydrology, Meteorology, Air Quality, Water Quality, Terrestrial Ecology, Noise, solid waste management and Occupational Health & Safety. The executive summary will cover concise discussions on significant findings and recommended actions. The study will comprise of the following stages: Stage 'A' Stage 'B' Stage 'C' Determination of baseline conditions, in all the disciplines outlined above Assessing the impacts on the environment due to the construction and operation of the power plant and recommendations on amelioratory measures to be taken to minimize the adverse impacts on the environment to acceptable levels. A suitable post-study monitoring programme will be out-lined. Preparation of EIA/ EMP document. An outline of the activities to be undertaken for each stage is given below: STAGE A : The suitability of sites with respect to plant, waste disposal areas and associated facilities for the proposed project shall be examined. The policy, legal and administrative framework will be included in the report. Existing baseline conditions in the Study Area (s), including existing use of lands, resources and other activities which have potential in combination with proposed Project activities to affect the environment. 40

43 Project Description Concise description of the project's engineering, geographical and pollution control features including any offsite facility that may be required will be covered in this section. Data on the land use, forest land involved, if any, number of families, if any, to be affected and number of affected homestead due to land acquisition shall be collected and highlighted in the report. Baseline data The baseline data collection will be based upon one season (three month) field environmental monitoring data (excluding monsoon). This includes one season field monitoring meteorological data, long term micro-metrology, ambient air quality measurements of Suspended Particulate Matter (SPM), Respirable Particulate Matter (RPM (10 and 2.5µm)), NO2, SO2 and CO, water quality, noise measurement, traffic survey, soil quality etc. Secondary data like ecology, land use pattern, demographic profile data, data on socio-economic secondary sources, Land use pattern of the study area shall be established through available data/ information from secondary sources. The information must be sufficient to support predictions of environmental effects and conclusions about the impacts and consequences of proposed activities. 4 Rs Concept Concept of Reuse, recycle, recover and recharge will be applied for the proposed project. Waste Generated will be converted into value addition products. Zero discharge will be maintained to prevent any damage to environment as well as society. STAGE 'B': Environmental Impact The features of the proposed project, which are likely to have impact on the environment shall be discussed in detail covering gaseous emissions, liquid effluents, particulates, solid wastes, noise, etc. with knowledge of the baseline condition and plant characteristics, positive and negative impacts during the construction and operation phase will be identified and assessed. Impact of the stack emissions on terrestrial flora will be scientifically documented based upon species composition of the area and their air pollution tolerance levels. The impact will be expressed through appropriate matrix. Special reference will be made with respect to following impacts. 41

44 Air Quality Impact: A computer based internationally recognized mathematical air quality model ISCST3 will be run to predict the concentration of SO2, NOx & SPM due to the operation of the power plant. The model will take into account other sources of pollution and topographical features of the study area. The emission of relevant pollutant (SO2, NOx and SPM) from nearby sources shall be used in the model for more accurate estimate of air quality. The results will be presented for short term (24 hourly) concentrations over a radius of 10 km. around the plant. The dispersion model results will be included in the report using isopleths or other graphical methods, over laying a map of the surrounding area. The predicted air quality shall be compared with existing regulations and amelioratory measures, if any required will be identified. The impact at all the monitoring locations shall also be estimated. Water Quality Impact: The impact of liquid effluents on natural water bodies receiving the effluents shall be established and significant parameters, which are likely to change critically, shall be clearly spelt out. Identify Project activities, including construction, which may affect surface water or ground water. Describe how water will be discharged to the river or any other water body. Describe the potential effects on the river and groundwater where applicable. Describe mitigation measures to minimize potential effects including potential discharge of the Project on the surface water source and groundwater during the construction and operation, phases of the Project on-and off-site. Describe proposed water management programs. Describe anticipated water use minimization, water recycling, water conservation efforts and wastewater handling for this project. Describe the quantity and source of wastewater. Review industrial wastewater treatment technology and describe the wastewater treatment system. Consider techniques, e.g., pollution prevention and in-plant controls, to establish the lowest practical discharge levels (in terms of loads and concentrations) of the new plant. Provide a summary of discharge parameters, water quality effects and possibilities for reduction based on technology. 42

45 Identify any activities that may potentially affect fish habitat and fish resources. Social Impacts Social impacts will be identified and necessary amelioratory measures, if any required will be prescribed. The beneficial impacts of the project on the local community shall also be delineated. Some impacts are associated with the health, sanitation, security and housing needs of the workforce. In particular, the proponent will identity socio-cultural impacts of large number of workers employed during the construction phase on local communities. Provide information regarding the effects of the Project on the Study Area, on the region, including: Local employment and training; Local procurement; Population changes; Demands upon local services and infrastructure such as social services and law enforcement; and Economic benefits. Prediction of Noise Levels: Sources of noise and its impacts on the environment shall be clearly brought out. The noise levels at varying distances from source will be predicted using suitable model. Discuss the effect on noise levels at local residences during the construction and operational phases of the Project. A comparison of measured noise (Leq) at monitoring locations to that of predicted noise levels (Leq) will be made and mitigative measures required, if any, will be recommended to conform to the regulatory ambient air noise standards and identify noise reduction measures and traffic management strategies. Disaster Management Plan and Occupational Safety: A general Disaster Management Plan (DMP) for dealing with emergency situations arising due to fire, explosion, leakages of hazardous substances, if any in the plant shall be prepared. The plan will also include storage, handling, transportation etc. for the hazardous and toxic materials to be used in the power station. Occupational risk involved during construction and operation of the plant should be assessed and necessary safety and protective measures should be spelt out. 43

46 Green Belt Development Plan: A green belt development plan for the project site should be included in the EIA report as per MOEF guidelines. Details such as areas to be planted, suitable plant species, plantation technique and necessary infrastructures required for plantation etc. shall be clearly mentioned. The plan shall include the minimum width, tree density. Other aspects like rain water harvesting by designing suitable recharge pits shall be included. Post-Study Monitoring Plan: It is necessary to monitor certain environmental parameters identified as critical or as required by regulatory agencies. Considering the requirements of Regulatory Agencies and identified critical parameters, a post study environmental monitoring programmed will be designed. All equipment and manpower requirement necessary for the implementation of this programmed and cost involved will also be identified. Environmental Management Plan: At this stage, it may become apparent that additional environmental management and pollution control measures will be necessary to meet the requirements of the regulatory agencies. In respect of impacts identified, which need to be controlled, an environmental management program in accordance with the principles should be considered. Where practicable costs of monitoring programs should be estimated and a budget for implementation shall be presented. Recommendations on mitigation measures, as and where such measures are warranted shall be delineated. Environmental Management Plans will be developed to selectively mitigate the adverse impacts of the power project activities. Recommendations shall be made concerning establishment of Environment Management Group and training of staff, wherever necessary. STAGE 'C' Preparation of EIA document for Public Consultation and Application to SPCB for Environmental Clearance. 44

47 4. Site Analysis 4.0. Connectivity The project site is well connected with Chandigarh-Hoshiarpur Highway HN-94. Nearest towns are Garhshankar and Mahilpur, both 9 Kms from each side of the project Site. Nearest city Hoshiarpur is just 30 Km from the Project Site. Nearest major Railway Station is Phagwara at a distance of 45 Kms. Nearest Airport is 110 away at Chandigarh Land Form, Land Use and Land Ownership This is an expansion, upgradation and modernization of the existing project to be implemented in the existing premises. Land ownership with the Kuantum Papers Ltd. No additional land is required for the proposed expansion Topography (alongwith map) This area of Punjab has plain topography. The map is attached below: 4.3. Existing land use pattern Proposed area for the expansion and upgradation/modernization activities is within the existing premises of the factory. No National Park, Wild Life Century, Biosphere Reserved, Major River fall within 10 Km radius of the plant. 45

48 4.4. Existing Infrastructure The proposed expansion cum modernization project is to implemented in the existing factory premises Since there will be no change in the installed capacity of the plant after implementation of the proposal, the existing infrastructures are adequate for successful implementation of successful operation of the plant after expansion. Apart from facilities to produce 450 TPD Paper, the following infrastructure facilities are available in the existing plant: Offices, Guest House, Parking, Residential Colony, Temples, Club House, Gym and Security Raw Material weighing and Storage facility Engineering Workshops Effluent Treatment plant Greenbelt covering 45% of total Plant Area Company s Dispensary School managed by the company 4.5. Soil Classification The soils are yellowish brown to dark brown in colour in general. These range from calcerous sand to fine sandy loam to silts. Sand is mostly cultivated well drained with estimated infiltration rate of 8-10 cm/hours Climatic Data from Secondary Source The climate of Hoshiarpur district can be classified as tropical steppe, hot and semi-arid which is mainly dry with very hot summer and cold winter except during monsoon season when moist air of oceanic origin penetrate into the district. There are four seasons in a year. The hot weather season starts from mid March to last week of the June followed by the south west monsoon which lasts upto September. The transition period from September to November forms the post monsoon season. The winter season starts late in November and remains upto first week of March. The normal annual rainfall of the district is 938 mm which is unevenly distributed over the area in 38 days. The south west monsoon, sets in from last week of June and withdraws in end of September, contributed about 77% of annual rainfall. July and August are the wettest months. Rest 23% rainfall is received during non-monsoon period in the wake of western disturbances and thunder storms. Generally rainfall in the district increases from southwest to northeast 4.7. Social Infrastructure Available School, Colleges, Professional Institutions, Dispensaries, Hospitals, Police Stations, Temples and other places of worship within 10 Kms of the factory. 46

49 5. Planning Brief 5.0. Planning Concept (Type of industries, facilities, transportation etc) Town and Country Planning/Development Authority Classification. The proposed project is expansion and modernization/up-gradation of existing operational pulp and paper mill with well developed vendor, transportation and dealer network. Therefore, all the facilities required for implementation of the proposed project may be provided without any problem. The existing premises have been given clearance by the Town and Country Planning/Development Authority during last environmental clearance in 2009 for expansion from 150 to 450 TPD Polulation Projection The company will prefer to appoint manpower from the professional institutions within 50 Kms and local ITIs of the area and hence no major influx of polulation due to the proposed expansion cum modernization/up-gradation is envisaged Land use planning (breakup alongwith greenbelt etc) Out of total 257 acres area of land, 114 acres is being used for processing, acres is already covered under greenbelt which is being further increased by covering another 8 acres under plantation and remaining around 27 acres is earmarked for other activities such as ash disposal etc. After proposed expansion, Greenbelt will be around 45% of the total plant area Assessment of Infrastructure Demand (Physical & Social) Kuantum Papers Ltd will assess both social and infrastructure demand in the areas around the plant and will take up development activities under Corporate Social Responsibility (CSR) program. The mill is already involved in CSR activities in the nearby villages Amenities/Facilities M/s Kuantum Papers Ltd has been providing various amenties/facilities to the people in the nearby area. Some of these are listed as under: The company in running a school upto class 10 th with dedicated quality teaching staff. The school has helped the local poor people to afford quality education in the vicinity. The Company is also providing assistance both financial and inftastructural to nearby govt schools. The company has also implemented scholarship scheme for the students. Medical Check-up camps are organised in the nearby villages by the company. 47

50 Blood Donation Camps are also organized by the company. Drinking water supply to nearby areas. Supply of subsidized clonal eucalyptus planations to the villagers to promote agro-forestry. The company is also conducting adult education programs. Vocational training to students from nearby ITIs. Construction and repair of roads in nearby villages. 6. Proposed infrastructure 6.0. Industrial Area (Processing Area) The company owns 257 acres of land. Out of 257 acres, 114 acres is being used as processing area. The proposed project will be implemented in this existing area and no additional land will be acquired for industrial use Residential Area (Non Processing Area) The company has a residential complex within the existing factory premises. This Residential complex is sufficient to cater the requirement of the proposed project Green Belt Out of around 260 acres of total factory area, acres of land has already been covered under green belt as per drawing attached below. Apart of this, additional around 8 acres of land is currently under development for plantation. This will make total area under green belt as around 116 acres which is around 45% of the total factory area. The details of the green belt within the factory premises are shown in following Figure: 48

51 Area under Green Belt at Kuantum Papers Ltd 6.3. Social Infrastructure The social infrastructure in locality of the project is going to improve due to direct & indirect employment generation and hence supporting infrastructure development to cater the additional need. 49