PRE-FEASIBILITY REPORT

Transcription

1 PRE-FEASIBILITY REPORT INTEGRATED SUGAR PLANT EXPANSION (5000 TO 7500 TCD), ETHANOL PLANT EXPANSION (30 TO 100 KLPD) WITH INCINERATION BOILER / TG / AUXILIARIES FOR ZLD & PROPOSED COGEN POWER PLANT (44 MW) PROJECT Padmabhushan Krantiveer Dr. Nagnathanna Nayakawadi Hutatma Kisan Ahir SSK Ltd. (PKDNNHKASSKL) Nagnathannanagar, Tal- Walwa, Dist- Sangli Maharashtra Page 1 of 27

2 1.0 Project at a Glance Padmabhushan Krantiveer Dr. Nagnathanna Nayakawadi Hutatma Kisan Ahir SSK Ltd. (PKDNNHKASSKL) was registered under section 9 (1) of Maharashtra Co-operative Societies Act, 1960, The registration number of the Society is SAN/PRG/(A) 4. in June 29th, 1981, with site located at Nagnathannanagar, Tal- Walve, Dist- Sangli, Maharashtra PKDNNHKASSKL, is an existing sugar factory with 5000 TCD capacity (operating at average cane crushing of 4000 TCD), along with 30 KLPD ethanol plant. PKDNNHKASSKL now proposes to expand the crushing capacity from 5000 TCD to 7500 TCD, ethanol plant from 30 to 100 KLPD, along with incineration boiler / TG & auxiliaries for achieving Zero Liquid Discharge (ZLD) along with proposed cogeneration power plant of 44 MW. The integrated project comprises of expansion of sugar plant for the manufacture of high quality sugar, thereby making available required bagasse for the proposed cogen power plant and molasses for ethanol plant expansion. The proposed cogen power plant envisages utilizing the bagasse generated from expanded sugar plant capacity during season & off-season operations. The proposed ethanol plant expansion also envisages to utilize captive molasses from the sugar plant expansion & procured molasses from factories in the surrounding area. The command area of the proposed sugar mill has adequate irrigation facilities, potential for sustained cane supply to the expanded sugar plant capacity. The project also envisages installation of suitable capacity incineration type boiler for burning of spent wash generated from existing ethanol plant & its expansion and achieve ZLD for the entire complex. The aggregated capital investment for the integrated project has been estimated at Rs crores. 2.0 Project Rationale The promoters and farmers in the command area, having experience in sugar industry and sugarcane cultivation, were able to foresee the cane potential in the command area & opportunity to utilize surplus cane available. The current policies in Maharashtra and in India are conducive and backed by favorable regulatory framework for generation of eco-friendly power & ethanol, as well as regarding support for private investment in such integrated projects. Page 2 of 27

3 2.1 The Promoters & Project Preparedness PKDNNHKASSKL is promoted by Shri. Vaibhav Naganath Nayakawadi, the Chairman, Shri. Baburao Dyandeo Borgavkar, Vice Chairman along with other Directors, as listed in the Appendix- VI, under the leadership of Shri. Narendra Laxmanrao Kapadnis, Managing Director & competent factory staff. The promoters have adequate experience in the sugar & ethanol sectors, as well as socio-economic activities in the command area. PKDNNHKASSKL has been successfully operated integrated complex, including sugar for the last 3 decades. The promoters have extensively and carefully analyzed the present and future scenario of sugar, power and ethanol industries. They have studied carefully the present irrigation facilities, surplus cane availability in the command area and potential for cane development, to suit the proposed expansion plan. PKDNNHKASSKL has already appointed a technical / managerial team of highly qualified engineers, contract & arbitration experts, agricultural officers and managerial personnel, for implementation and operation of the captioned integrated project. To make the venture commercially viable and financially profitable, the capacity of the sugar plant expansion is decided and fixed at 7500 TCD, Ethanol plant of 100 KLPD along with 4 MW slop fired boiler/tg and a cogeneration plant of 44 MW. The suitability of the soil, increased irrigation facilities and previous experience of the farmers in cane growing will be helpful in developing the required area for cane plantation. 3.0 Project in Brief 3.1 Sugar Plant Expansion Mill (estimated capital investment of Rs crores) The design basis includes average crushing rate of 7500 TCD ( TCH, 22 hrs and 160 crushing days) with 30 % bagasse generation on cane, 0.80% bagacillo & handling losses resulting in 29.20% bagasse on cane available as fuel for the proposed cogen power plant. The sugar process steam consumption will be 96.6 TPH (40% on cane crushing). Power consumption for sugar plant will be 8.52 MWh (at 25 kwh/tch). Page 3 of 27

4 The sugar plant expansion will manufacture white sugar of good quality. The sugar market in India is quite up-beat and is expected to continue for a foreseeable future. Command area has excellent sugarcane availability with average sugar recovery of about %. 3.2 Cogen Power Plant (estimated capital investment of Rs crores) The proposed cogen power plant of 44 MW capacity will mainly operate on mill bagasse during 160 season days and saved bagasse from expanded sugar plant & existing sugar plant to operate for 38 off-season days. During crushing season of 160 days, the gross power generated will be about MW and export shall be MW, after satisfying the requirement of the sugar plant & cogen plant auxiliaries. During the non-crushing season of 38 days, the gross power generated will be 44 MW and export will be MW, after satisfying the requirements of the cogen plant auxiliaries. The energy export from the cogeneration plant will be MUs during the crushing season and MUs during the non-crushing season, cumulating to MUs (at design level), considering 198 operating days in a year. Additionally, the incineration boiler & turbine will generate 4 MW power for 300 working days, independently for proposed 70 KLPD ethanol. The power will be exported for sale to MSETCL, as per prevailing tariff. In view of the prevailing rate adopted by MERC as per its recent tariff order, dated April 28, 2017, the sale of power has been considered at Rs / kwh. All steam and power requirements of the sugar mill, cogen auxiliaries and colony, both during season and off-season periods, will be met internally from the cogen power plant. It will employ high pressure and temperature configuration 1 x 240 TPH (87 Kg/cm2 and 515 C) boiler & 1 x 44 MW double-extraction cum condensing (DEC) TG sets, as well as ESP for emission control and DCS control system for efficient operation. The policy for sugar, bagasse cogen & ethanol plants, both at the Central Government and at the State, Government of Maharashtra are quite conducive. The MNRE has provided several financial incentives in terms of capital grants and interest subsidy till date and the same are likely to continue. The proposed project will be eligible for these incentives as well as other incentives like accelerated depreciation, income tax benefits, reduced import duties for renewable energy projects. Page 4 of 27

5 3.3 Ethanol Plant Expansion, along with incineration boiler / STG & Auxiliaries (estimated capital investment of Rs crores) Ethanol plant expansion will have capacity of 70 KLPD, along with sugar plant expansion & proposed cogen plant. PKDNNHKASSKL will operate the ethanol plant on own molasses, as well as procured molasses that is generated by the surrounding sugar factories for 300 days. The Government of India proposes to increase blending from 5% to 10%. Therefore, the demand of ethanol from is growing substantially. Total ethanol production increased from 1,435 million litres in to 1,934 million litres in on account of higher sugarcane and sugar production and the estimated ethanol production in is pegged at 2,130 million litres. Ethanol consumption increased from 1,780 million litres in to 2,010 million litres in , owing to improved molasses supply and steady ethanol demand from competing industries. As per National Policy on Biofuels, it proposed that the blending level be increased to 20% by Recently, Government has also removed excise duty levied on ethanol supplied for blending with petrol. The net realization of fuel ethanol to factory will be about Rs. 39/KL, considering the excise duty benefit. Ethanol plant will operate for 300 days, i.e. 120 days on the molasses generated by the sugar factory & 180 days on procured molasses. PKDNNHKASSKL proposes to follow the process for ethanol production viz. fermentation, multi pressure distillation, spent-wash evaporation followed by slop / coal fired / incineration boiler (40 TPH) & TG set (4 MW) to generate steam & power. Page 5 of 27

6 Highlights of the Project Name and Address : Padmabhushan Krantiveer Dr. Nagnathanna Nayakawadi Hutatma Kisan Ahir SSK Ltd. (PKDNNHKASSKL) Factory Site Constitution & Type : Nagnathannanagar, Tal- Walve, Dist- Sangli, Maharashtra : Co-operative Society Products : Sugar, Co-generation Power & Ethanol Installed Existing Capacities of the Integrated Project Sugar Plant : 5000 TCD Ethanol Plant : 30 KLPD Installed Incremental Capacities of the Integrated Project Sugar Plant Expansion : 2500 TCD (Average 160 crushing days) Cogen Power Plant Ethanol Plant Expansion Incineration Power Plant : MW installed capacity MW (Avg. Gen. power, Season 160 days) MW (Avg. exportable power, Season 160 days) MW (Avg. Gen. power, Off- Season 38 days) MW (Avg. exportable power, Off- Season 38 days) : 70 KLPD (Average 300 days) 4.00 MW installed capacity 1 MW (Avg. exportable power, Season 160 days) 1 MW (Avg. exportable power, Off- Season 140 days) 3.4 Financial Highlights Project Cost Total Project Cost Sugar Expn. Project Cogen Project (Rs. in Lakh) Distillery Expn. Project Total Land & Site Development : Civil works : Indigenous Plant and Machinery : Miscellaneous Fixed Assets : Prelim & Preoperative Expenses : Contingencies : Working Capital Margin : Total : Page 6 of 27

7 Means of Finance: (Rs. Lakh) Financing Pattern Sugar Expn. Project Cogen Project Distillery Expn. Project Total 1. Promoter's Equity : SDF Quasi Equity : F.I Loan : Total : Parameter First Year Fifth Year Estimated W/C Requirements Rs. Lakh Estimated Annual Turnover Rs. Lakh Profit Before Tax Rs. Lakh Accumulated Cash Surplus Rs. Lakh Employment Potential Nos Debt Service Coverage Ratio (DSCR) Average Maximum Minimum Payback Period, Years 4 to 5 Internal Rate of Return on total Investment, % 23.13% Strengths Background and experience of the promoters & shareholders, as well as strong & visionary leadership from Shri. Vaibhav Naganath Nayakawadi, Chairman & Shri. Baburav Dyandeo Borgavkar, Vice Chairman Proven physical & financial performance for last three decades in sugar industry Surplus sugar cane availability in the command area & potential for securing required quantum of cane for the expanded capacity of the sugar plant. Availability of basic infrastructure including approach, land, water, fuel & experienced manpower Adequate support from the Central Government / State Government / MERC /SDF / MNRE, for cogen power & ethanol. Readiness & support from Central Government for offtake of ethanol & from Government of Maharashtra for purchase of exportable power at remunerative prices Close to demand / load centers, low transmission cost & proven project concept in the State sugar industry. Page 7 of 27

8 Excellent operations and results of existing sugar & ethanol units in private sector sugar mills in India and Maharashtra. Availability of nearest transmission line and grid to evacuate exportable surplus Capital subsidy from MNRE 3.5 Risks Factors Risk Particular Mitigates Performance risk Marketing risk Regulatory risk Financial risk Assured sugar cane & fuel availability Sugar sale / export Conversion / clearances / tariff order Financial viability of the project Cane development has been in full progress, with experienced senior professionals and staff appointed for the purpose. A full time fuel manager and dedicated staff have been proposed for the cogen power plant. Excellent support from farmers Firm marketing tie up in offing. Alternative marketing channels explored. No link with domestic demand. Value added products proposed No difficulty envisaged, as various governmental agencies have already expressed their willingness to issue approvals / consents. All the approvals in pipeline. Conducive tariff for cogen power Satisfactory DSCR. Equity participation arranged 3.6 Implementation Schedule The integrated sugar, cogen power & ethanol plant will be commissioned by October, Meticulous planning and strong project management proposed will ensure this schedule. 4.0 Project Description 4.1 Type of Project The proposed project mainly to expand the capacities of the sugar plant from 5000 to 7500 TCD, ethanol plant from 30 to 100 KLPD along with incineration type boiler / TG & auxiliaries for achieving Zero Liquid Discharge (ZLD) for the entire complex & install new cogen power plant of 44 MW. 4.2 Location of Project Page 8 of 27

9 The proposed unit is located at village Nagnathannanagar, Taluka Walve, Dist. Sangli, Maharashtra. 4.3 Products & By-products S.No. Name of Products 1 Sugar 2 Power 3 Ethanol 4.4 Sugar Plant The objectives of PKDNNHKASSKL are to improve the efficiency and achieving steam & power economy, by implementing the modernization scheme at the existing sugar plant, as well as to expand the existing crushing capacity from 5000 TCD to 7500 TCD, by installing new highly efficient & latest technology machinery. The power & steam consumption for sugar process will be at 22 kwh/ TCH and 38 % steam on cane, for the expanded capacity. 4.5 Cogen Power Plant The proposed cogen power plant component of the integrated project will have installed capacity of 44 MW (1 x 220 TPH Boilers, 1 x 44 MW Double extraction cum condensing type TG set and will employ 110 kg/cm 2 and 540 C configurations. The brief design parameters for the cogen power plant expansion will be as follows: Boiler capacity, TPH : 1 x 220 Pressure, kg/cm 2 : Temperature, C : 540 Turbine capacity, MW : 1 x 44 Turbine type : Double extraction - cum condensing Season operation, days : 160 Off season operation, days : 33 Fuels used for season operation : Bagasse Fuels used in off season : Saved bagasse Boiler efficiency, % - On bagasse : 70.00, 1 Feed water temperature, C : 210 Captive power consumption, % of generation in season & off-season : 9.00%, season 9.50%, off-season Turbo-generator efficiency, % : Page 9 of 27

10 Sr. No. Item Unit Value Season Operation 1 Avg. cane crushing TCD Gross season days nos Net season days nos Hrs. / day nos Normal cane crushing TCH Cane crushed Lakh MT Bagasse generation % cane Bagasse generation TPH Bagasse for bagacillo / handling loss % cane 1.00 TPH Bagasse available for boiler TPH Total equivalent bagasse available for boiler TPH Bagasse saved for off season MT Bagasse used by new boiler Kg steam / kg Bagasse used by new boiler TPH MT Steam generation TPH Steam consumption TPH 16.1 HP for SJAE & GSC HP heater I Sr. No. Item Unit Value 16.2 MP 8 kg/cm 2 HP heater II Sub-total LP 2.5 kg/cm 2 Sugar process % cane De-aerator D/s water addition Sub-total Condensing steam Total Power generation MW Power consumption MW - Sugar process kwh/tch Cogen auxiliaries Total Power export from Cogen Plant MW MUs Page 10 of 27

11 19.2 Power export from Incineration Plant MW 1.00 MUs Total Mus, Season Total no. of days / year nos. 193 Off Season Operation 21 Off-season fuel requirement TPH Total No. of off season days nos. 33 No. of days on Coal 0 No. of days on cane trash 0 22 Days on Saved bagasse nos No. of hrs / day nos Steam generation TPH Steam consumption TPH 25.1 HP for SJAE & GSC HP heater I MP 8 kg/cm 2 - Sugar process 0.00 HP heater II Total Sr. No. Item Unit Value 25.3 LP 2.5 kg/cm 2 - De-aerator D/s water Total Condensing steam Total Power generation MW Power consumption MW - Cogen auxiliaries Sugar process Total Power export from Cogen Plant (33 Days) - MW MUs Power export from Incineration Plant (140 Days) MW 1.00 MUs Total Mus, Off-Season Total power export Boiler size (110 kg/cm 2 & 540 deg C), with bagasse dryer 31 TG size (105 kg/cm2 & 535 deg C) Page 11 of 27

12 Water & Condensate Balances While steam, power and bagasse balances both for season and off season operations of the cogen power plant have been indicated in section 3.2.5, the water and condensate balances are given in the following table: Item Value, TPH Season Off season Condensate return from sugar process Condensate from Steam to de-aerator Blow down flash recovery Condensate from condenser Make up water from DM plant Condensate from HP heater Flow from de-aerator Bagasse / Fuel Balance The bagasse and fuel balances are indicated in the following table: Sr. Item Value No. Season Off season 1. Crushing rate, TCH Bagasse generation at 27.5 % on cane, TPH Bagacillo / handling loss at 1.0 % on cane, TPH Bagasse available as fuel at % on cane, TPH Total equivalent bagasse available, TPH Bagasse consumed by boiler, TPH (MT) (269491) Bagasse saved for off season operation from cogen plant expansion, MT No. of days Power Balance Following table gives the power balance for the season and off-season Sr. Item Value, MW No. Season Off season 1 Power Generation from Cogen Plant Expansion Project, MW 2 Power Consumption for Cogen Plant Expansion project, MW Page 12 of 27

13 - Sugar kw / TCH Cogeneration auxiliaries Total Power export from Cogen Plant Expansion, MW (160 days) Power export at design capacity level, MU Power export from Incineration Plant, MW Power export at design capacity level, MU Total MUs at design levels MERC Qualifying Criteria (38 days) Based on the qualification criteria of the topping cycle under the MERC tariff order, the eligibility of the proposed project in season has been worked out as under: Sr. Item Value No. 1. Net Energy Input (A), M Kcal/hr (70.18 TPH x 2250 kcal/kg) 2. Electrical power output (B), M Kcal/hr (40 MW x 860 kcal/kwh) 3. Useful thermal output (C) (energy in the process), M Kcal/hr (19.55 TPH x 659 kcal/kg) 4. Total energy output (B+ C), M kcal/hr % of total energy output (D), M kcal/hr 6. Evaluation condition (C D) Yes 7. Efficiency, % (B+C/2 / A) Note: The proposed project is eligible under the MERC tariff order and qualifies under the same. Key performance parameters The key performance parameters for the cogen power plant are given below: Sr. Description Value No. 1 Steam Generator efficiency, % : 70 1 on bagasse 2 Steam to Fuel Ratio, kg bagasse / kg : DEC Turbine efficiency, % : +90% 4 Average Steam to Power Ratio, kg / kw Season Off-Season : : Page 13 of

14 Sr. No. Description Value 5 Auxiliary Power consumption, MW (%) Season Off-Season : : Utilization Level, % 80 in 1st year, 85 in 2nd year & 90 in 3rd year & 95 from 4th year onwards 7 Power Generation / Export : Season MW/MU s : / Generation Export : / Off-season MW/MU s : / Generation Export : / Cogeneration Annual Total - MU s : Generation Export : Exportable Surplus power (% Generation) Season : Off-season : Total : Ethanol Plant Expansion The molasses balance for the proposed 70 KLPD Ethanol will be as follows: Particulars Quantity Existing Crushing, MT Proposed Crushing, MT Est. Molasses Recovery, % 4 Capacity Utilization,% 100 Annual Incremental Molasses production, MT Molasses Generation from existing sugar plant, MT Total generated molasses, MT Molasses requirement for 100 KLPD Ethanol Procured Molasses for 100 KLPD Ethanol Molasses requirement for 30 KLPD Ethanol Procured Molasses for 30 KLPD Ethanol Own Molasses for 30 KLPD Ethanol Molasses requirement for 70 KLPD Ethanol Procured Molasses for 70 KLPD Ethanol Own Molasses for 70 KLPD Ethanol The design parameters & molasses required per day for the ethanol plant expansion are given in the following table: Page 14 of 27

15 Sr. No Item Ethanol Plant 1 Cane Crushing Expansion, TCH No. of hrs. per day 22 3 No. of season days, Sugar factory Cane crushing, MT Ethanol capacity, KLPD 100 (Existing 30+ Proposed 70) 6 No. of days of operation, Ethanol plant Molasses, % cane 4 8 Total Molasses Generation Molasses requirement for 30 KLPD Ethanol Own molasses used by existing 30 KLPD Ethanol Own molasses available for proposed 70 KLPD 9702 Ethanol 9 Ethanol recovery, liters / MT of molasses Quantities for proposed 70 KLPD Ethanol Molasses required MT per Annum Molasses required MT per day Procured Molasses for proposed 70 KLPD, MT No. of days (proposed 70 KLPD) - Own Molasses Procured Molasses Total Spent-wash generation per lit of RS, Ltrs Total Concentrated spent-wash generation / day, (m 3 ) 15 Total spent-wash generation per annum (m 3 ) Spent-wash generation, after evaporation, TPH Total spent-wash generation per annum (MT) Incineration Boiler / TG Set, TPH & MW 40/4 19 Water, 10 m 3 /KL 1000 The brief manufacturing processes of ethanol are given below: The process envisages use of own molasses generated by the sugar factory for manufacture of ethanol during sugar mill season and during off-season days. Following is brief description of the process: Fermentation System The molasses stored in the storage tanks will be supplied to the fermenter, where it will be diluted partly by water and partly by the effluent produced by the distillery and then fermented in a continuous fermentation reaction. Distillation Page 15 of 27

16 The fermented wash will be then fed to the distillation column. Here the wash will be distilled to generate the rectified spirit, which will be sent to the molecular sieve section where rectified spirit will be converted to ethanol. The distillery will produce liters of ethanol per day which will be sold to the oil companies for blending with petroleum products. PKDNNHKASSKL proposes to go for spent-wash Concentration and Incineration Technology simultaneously generating Steam and Power for the process and Distillery. The spent-wash / coal fired boiler will have capacity of 40 TPH & Turbine 4 MW. Effluent Treatment I. Sugar Plant The sugar plant effluents will be treated in a separate effluent treatment plant & the discharges will be maintained as per the latest norms of the MPCB & CPCB. The liquid effluents from the sugar process will be mainly waste water from various process equipment in the milling & boiling house sections & the treated water will be used for gardening purposes. The air emissions in the sugar bagging sections will be limited to the acceptable limits due to deployment of dust catchers. II. Cogen Power Plant The cogen power plant effluents will also be treated in a separate effluent treatment plant & the discharges will be maintained as per the latest norms of the MPCB & CPCB. The liquid effluents generated from the cogen power plant will be mainly from boiler blow down & water treatment plant blow downs, wash water & other sewage effluents. The treated water will be used for gardening purposes. The air emissions will be maintained well within the norms due to deployment of the latest design electro static precipitator & the ash generated will be sold to brick manufacturers after mixing it with the press mud. III. Ethanol Plant The spent-wash generated in the distillery process is a serious problem by way of threat to the environment. Its volume from continuous fermentation plant is as large as 1000 m 3 /day for a distillery plant of 100 KLPD capacity if multi pressure distillation technology is adopted. Page 16 of 27

17 PKDNNHKASSKL is adopting 4 stage zero discharge effluent treatment process to take care of spent-wash. These stages are briefly described below: 1) Multi pressure distillation along with integrated evaporation In this section, steam is utilized in direct way for heating. Hence, spent-wash quantity generated is less as compared to traditional distillation technology. Integrated evaporation shall be adopted along with multi pressure distillation. During this stage evaporation is done, which helps to reduce volume of spent wash. 2) Multi effect evaporation -The spent-wash evaporation technology is a multiple effect evaporator system in which heat recovered from one effect is used to concentrate spent-wash in second effect evaporator with continuous recirculation of concentrated spent-wash within the system until desired concentration is obtained. This entire Concentration process is carried out under vacuum leading to less consumption of steam and maximum concentration of spentwash with in less period of time. This is the 2 nd stage of effluent treatment wherein spent-wash after integrated evaporation is concentrated. 3) Incineration Boiler - Concentrated spent wash along with support fuel like coal is burned in incineration boiler, which will take care of entire spent wash of the distillery. 4) Condensate Polishing Unit- The condensate polishing unit is also envisaged to take care of spent less, cooling tower blow down, washing and process condensate from evaporation plant. After treatment all the stream at CPU, water can be recycled to process and as cooling tower make up. PKDNNHKASSKL proposes to go for spent-wash Concentration and Incineration Technology simultaneously generating Steam and Power for the process and Distillery. The spent-wash / bagasse fired boiler will have capacity of 40 TPH & Turbine 4 MW. With effective utilization of such a technology big hurdle of spent-wash disposal will be solved and distilleries will become zero effluent discharging unit. Raw Materials I Sugar Plant Page 17 of 27

18 The proposed sugar plant expansion of 7500 TCD ( TCH) will require about 12 lakh MT of sugarcane for 160 days crushing season. The present source of water in the command area is from Krishna River, tube wells and the lift irrigation by using pumps on the River. Rest of the irrigation is made from the open well and tube wells. The irrigation & climatic conditions are quite conducive. Considering this situation, the proposed project will not have any difficulty for making the required sugar cane available for crushing for the proposed capacity. II Cogen Power Plant As indicated in the steam / power cycle design, the total bagasse available from the sugar mill expansion, from cane crushing of 12 lakh MT, as fuel, will be MT (90.34 TPH for 22 hrs / day and 160 days / season) after considering bagacillo & handling losses. Out of this MT (70.18 TPH) will be utilized by the cogen plant boiler, leaving saved bagasse of about MT for the off season operation. Hence, the total bagasse availability for the off-season operation will be MT. For off season operation of 33 days, saved bagasse of MT will be used. Therefore, no additional fuel procurement is envisaged in getting fuel for the cogen plant expansion for total 193 days (160 season days for full plant & 33 days for 1 x 220 TPH boiler & 1 x 44 MW DEC TG set operation). Ethanol Plant Ethanol plant expansion will operate for 300 days, i.e. 113 days on the molasses generated by the sugar factory expansion project. Additional 187 of season days will be operated on procured molasses of MT at 100% utilization. With 42% fermentable sugar in molasses one ton of molasses, will yield 235 lit of total ethanol. Page 18 of 27

19 PKDNNHKASSKL proposes to go for spent-wash Concentration and Incineration Technology simultaneously generating Steam and Power for the process and Distillery. The spent-wash / bagasse fired boiler will have capacity of 40 TPH & Turbine 4 MW. Utilities & Consumables I. Water and power are the main utilities required for operating the integrated project. Water will be drawn from Krishna river right canal, the perennial source of water at a distance of about 2 km from the site. Therefore no difficulty envisaged in terms of availability of water required for the proposed sugar complex, except the draught years. Hence average water required per day for generation of power is considered as about 600 m 3, due to usage of Air Cooled Condenser. The average water requirement per day for sugar & ethanol plants will be 400 m 3 /day & 1000 m 3 /day, respectively. Power required for construction and in case of shut down of plant will be drawn from the State grid. II. The consumables required for operation of sugar plant include sugar bags, laboratory and ETP chemicals, oils / lubricants and other chemicals for the machinery and processing, etc. The consumables indicated above will be available in substantial quantities from nearby Sangli city, and no difficulty will be envisaged. Technical Specifications Sugar Plant Expansion The expansion of the sugar plant will be carried out in the sugar factory, to reduce the steam & power consumptions, stabilize the crushing rate at 7500 TCD (5000 TCD of the existing sugar plant & 2500 TCD sugar plant expansion project), improve the recovery, crushing performance & saving in bagasse. Cogen Power Plant Page 19 of 27

20 The technical specifications include 1 x 220 TPH Boilers & auxiliaries, 1 x 44 MW DEC TG set, water treatment plant, fuel & ash handling system, Air Cooled Condenser & auxiliaries for 44 MW DEC TG, electrical evacuation & distribution system, AC & Ventilation, air compressor, interface steam / water / compressed air piping, PRDS, DCS, EOT crane etc. Ethanol Plant Expansion The state of the art technology based modern ethanol plant based on molasses will have following major equipment sections: Molasses weighing and handling Fermentation Multi Pressure Distillation along with integrated evaporation Molecular Sieve Dehydration Alcohol Storage Utility Including Cooling Water System, Instrument Air Instrumentation System including PLC based Control Effluent Treatment Plant including evaporation Spent-wash storage tanks, interconnecting process & utility piping, internal electrical distribution system, Evaporation, firefighting system etc. Spent-wash fired boiler (40 TPH) Back Pressure Boiler (4 MW) Electrical evacuation & distribution system, AC & Ventilation, Fuel & Ash handling Project Site & Key Features Site Location Site location Nearest City Tehsil District Headquarter Nearest Highway Distance from Highway Nearest Railway Station Nearest Airport Distance from nearest Water Source Distance from nearest MSETCL EHV substation Walwe Islampur Walwe Sangli NH-4 15 KM Sangli Kolhapur Krishna River, 2 Km. 132 KV, (LILO line near factory premises) The proposed site is ideal for the proposed integrated sugar, cogen power project and ethanol plant, due to following reasons: Page 20 of 27

21 Required land is available at the factory site and is owned by PKDNNHKASSKL The site is easily accessible by road. The cane potential and irrigation facilities in the command area are adequate and will ensure sustained cane availability for the proposed project with the extensive experience of farmers in sugar cane cultivation. The off season non-fossil fuel requirements for the cogen power plant can be easily met by saved bagasse. The evacuation of exportable surplus power from the cogen plant and the slop fired TG will have to be made through the substation (132 kv) Grid (LILO is considered for power evacuation of MSETCL, as the line is available near factory premises). Infrastructure The site has easy access to latest communication and other social infrastructure facilities, including telecommunication, schools and colleges, medical & health facilities, commercial infrastructure, etc. at Walwe, which is a Tehsil Headquarter & Sangli, which is a District Headquarter. The construction power can be easily made available from MSETCL. Manpower The skilled manpower required for operation of sugar, cogen power and ethanol plants will be easily available from Sangli district. PKDNNHKASSKL will require 670 persons for existing & proposed integrated expansion project. It is most essential for PKDNNHKASSKL to define the organization structure individually for the sugar mill, ethanol and the cogen power plant. Project Implementation & Schedule Project Implementation For implementing this mega and complex project within the desired time and cost schedules, it is essential to undertake meticulous planning, right from the conceptual stages. Following aspects of the project implementation will be crucial: I. Intensifying cane development activities by networking and supporting the farmers from the command area. II. Effecting timely project development activities, including securing various approvals / NoC s / permissions for each component of the integrated project. Page 21 of 27

22 III. Appointment of pre-investment consultants and experts for preparation of DPRs, approaching select FIs / bankers, rendering required follow up and achieving financial closure, through raising of required equity and providing necessary securities. IV. Finalization of mode of project implementation, package route and O&M contracts for individual project components, along with strong owner engineering / consultancy team for effective monitoring of the implementation / commissioning of each component as per the schedule, is recommended, considering the complexities of individual projects. V. PKDNNHKASSKL proposes to appoint experienced project engineering management consultancy firm, as well as experienced in-house project team for the purpose. VI. Manpower and resource mobilization at required time and effectively VII. Interface between the sugar mill, cogen power plant & ethanol plant Project Schedule The zero date of the project starts from the date of achieving financial closure. The integrated sugar, cogen project & ethanol plant will be commissioned and start production by October, The project schedule will have main components as follows: Activities Expected Completion Date Project development activities up to financial closure December, 2017 Integrated Project October, 2018 Stabilization & development of MIS October, 2018 The detailed PERT / CPM networks for individual components and overall project will have to be prepared by the time of achieving the financial closure. The major activities after the financial closure for each component will include, Appointment of owner engineer / consultant, in-house project team and project architect Basic engineering & finalizing outline specifications Detailed design engineering and specifications Preparation of package bids, bidding, bid evaluation, recommendations and contracting for civil, mechanical, electrical and instrumentation components, as well as BoPs Kick off meetings with individual vendors / contractors Vendor drawing review and approvals, inspection and expediting and delivery at site Site supervision for erection, testing & commissioning Bidding, contracting and signing of O&M contracts Plant stabilization and development of MIS and automatic control systems for all sections of the plant Page 22 of 27

23 Plant Layout Layout Considerations I. Considerations for design layout Major layout design issues, which have been considered while developing the proposed plant layout, are as follows: Available land already acquired for the integrated project at site location Topography of the land being acquired and contour limitations Area requirements for various plant buildings, storage areas, colony, admin building, miscellaneous areas, etc. Direction / velocities of wind. Likely ingress of bagasse on to transformers etc. and precautions to be taken to mitigate Optimum men and material movement Minimum length of high pressure piping Minimum lengths of interface systems between the power plant and sugar mill Disposal of ash Routing of overhead EHV transmission line Vastu Shastra II. Area requirement & Layout The preliminary plant layout is prepared and presented in Appendix XVII with the details of area requirements for different sections of the proposed plant. The final layout will be frozen based on the detailed discussions with the select vendors / contractors. III. Ash, Effluent & Sewage Disposal a) Ash At 100% capacity utilization of the proposed power plant, around 3.18 lakh MT of bagasse will be burnt during season and off-season operations. Annual ash generation from this quantity of bagasse will be about 6360 MT. This ash will be mixed with the press mud, being distributed free to the farmers or nearby brick manufacturers. b) Effluent Page 23 of 27

24 Wastewater from a power plant does not have any significant BOD / COD level. All wastewater will be neutralized prior to discharging in the existing sugar plant expansion ETP. c) Sewage All sewage will be collected in a common septic tank and discharges as per accepted norms. Environment & Socio-Economic Benefits The proposed integrated project is utilizing the cane crop in the most efficient manner for eco-friendly products like sugar and renewable and decentralized power generation. The optimum production of conventional but quality sugar will cater to value added domestic and international markets. The sound techno-economic and commercial viability of this project, coupled with highest efficiency in all aspects of product manufacture, will pave the way for integration of sugar industry in the country. Establishment of the latest and most efficient technologies adopted for cane crop development, sugar manufacture, cogen power generation and ethanol plant will also help the Indian sugar industry and equipment manufacturers to grow leaps and bounds, at the national and the international levels. The socio-economic benefits arising out of this project for the local populace will include creation of direct and indirect jobs and consequent rise in the income levels, associated commercial and social infrastructure development in the project areas, improved quality and availability of power due to grid benefits (in terms of deemed generation and power factor improvement), better environment and higher returns for the cane crop due to higher yield and cane price. At the national and the State levels, the benefits include decentralized power generation, reduction in T&D loss, reduced emissions, reduction in the imports of petroleum products, increased tax revenues and reduction in the transportation costs. The project will have excellent multiplier effect and will become truly a win-win situation for all the stakeholders. Thus, the proposed project has substantial socioeconomic and environmental benefits at the local, the State, the Regional and the National levels. Page 24 of 27

25 Conclusions & Recommendations Project SWOT Analysis I. Strengths (S): Background and experience of the promoters & shareholders, as well as strong & visionary leadership from Mr. Vaibhav N. Nayakawadi, Chairman Proven physical & financial performance for last three decades in sugar industry Surplus sugar cane availability in the command area & potential for securing required quantum of cane for the expanded capacity of the sugar plant. Availability of basic infrastructure including approach, land, water, fuel & experienced manpower. Adequate support from the Central Government / State Government / MERC /SDF / MNRE, for cogen power. Readiness & support from Central Government for offtake of ethanol & from Government of Maharashtra for purchase of exportable power at remunerative prices Close to demand/load centres, low transmission cost as transmission line (LILO line near to factory premises) & proven project concept in the State sugar industry. Availability of near 132 kv transmission line (LILO Line) from grid to evacuate exportable surplus Capital subsidy from MNRE II. Weaknesses (W): Complexities and higher investment levels of the integrated project. Employment of experienced and professional teams and consultants, as well as project and equity partners, directors on board will reduce this weakness. Fluctuating prices of sugar. Page 25 of 27

26 Changes in the Govt. policies related to sugar, ethanol & cogen power III. Opportunities (O): Excellent opportunity for maximizing returns from extended off-season operation of the cogen power plant by using bio mass materials Decreased dependence on fluctuating margins for sugar. IV. Threats (T): Adverse changes in Govt. policies, particularly related to sugar prices and prices of exportable power Delay in project implementation which may lead to project overrun and cost overrun. (PKDNNHKASSKL will be employing proven consultants to monitor and expedite the progress). Risks & Mitigates Risk Particular Mitigates Performance Risk Assured sugar cane & fuel availability Cane development has been in full progress, with experienced senior professionals and staff appointed for the purpose. A full time fuel manager and dedicated staff have been proposed for the cogen power plant. Excellent support from farmers. Marketing Risk Sugar sale / export Firm marketing tie up in offing. Alternative marketing channels explored. No link with domestic demand. Value added products proposed. Regulatory Risk Financial Risk Key Management Features Conversion/ clearances/tariff order Financial viability of the project No difficulty envisaged, as various governmental agencies have already expressed their willingness to issue approvals / consents. All the approvals in pipeline. Conducive tariff for cogen power & purchase price for ethanol Satisfactory DSCR. Equity Participation arranged. Appointment of Project Team, required experts and consultants, as well as top level staff - right from the beginning Page 26 of 27

27 Securing all required balance permissions / NoC s / approvals quickly and achieving the financial closure at the earliest. Selection of right technology and equipment suppliers for sugar and cogen power plants as well as ethanol plant. Effective project management for timely execution Cane development in the command area Conclusions & Recommendations The captioned integrated sugar expansion, ethanol expansion along with incineration boiler / TG & auxiliaries for achieving ZLD & proposed cogen power plant project, is technically feasible and commercially viable. The integrated project is recommended to financial institutions for financing term and working capital loans. The backward and forward linkages of this project / as well as socio-economic and environment benefits to the local populace, make this a win-win project to all the stakeholders. Page 27 of 27