DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT
FROM CANE MOLASSES
AT
Village Selu, PO - Jategaon, Tehsil Gevarai,
District Beed, Maharashtra
Prepared for
M/s. Pingale Sugar & Agro Products Private Ltd. Registered Office:
C/o. Shambhu Mahadev Sugar & Allied Industries Ltd.,
Havargaon, Tal-Kallam, Dist-Osmanabad
Prepared by
MITCON Consultancy & Engineering Services Ltd. Kubera Chambers, 1st Floor, Dr. Rajendra Prasad Path
Shivajinagar, Pune – 411 005
September, 2015
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed i
DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT FROM CANE MOLASSES
TABLE OF CONTENTS
Chapter
No.
Title Page No.
DISCLAIMER
EXECUTIVE SUMMARY I – VII
1. INTRODUCTION
1.1 Project Background 1
1.2 Promoter’s Background & Experience 2
1.3 Cane Availability Projections 2
1.4 Ethanol Industry 4
1.5 Objectives & Scope of Work 7
1.6 Methodology 7
1.7 Acknowledgements 7
2. PRODUCTS & PROCESS
2.1 Products 8
2.2 Process 8
2.3 Requirement of Molasses 10
2.3.1 Use of B-heavy molasses 10
2.3.2 Molasses balance 12
3. SITE DETAILS AND INFRASTRUCTURE
3.1 Project Site, Key Features 13
3.2 Raw Materials 14
3.3 Utilities & Consumables 15
3.4 Manpower 15
4. DESIGN BASIS
4.1 Introduction 16
4.2 Design Basis, Fuel ethanol from molasses 16
5. PLANT LAYOUT
5.1 Layout Considerations 20
5.2 Ash, Effluent and Sewage Disposal 21
5.3 Plant Layout 21
5.4 Approach and Internal Roads 21
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed ii
DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT FROM CANE MOLASSES
TABLE OF CONTENTS (CONTD…)
Chapter
No.
Title Page No.
6 PROJECT PREPAREDNESS AND IPLEMENTATION
SCHEDULE
6.1 NoC’s / Approvals / Permissions 22
6.2 Management & Administration 22
6.3 Technical & Financial Tie Ups 23
6.4 Project Management 23
6.5 Implementation Schedule 23
7. ESTIMATED CAPITAL EXPENDITURE
7.1 Land & Site Development 25
7.2 Civil Works 25
7.3 Equipment 26
7.4 Miscellaneous Fixed Assets 26
7.5 Preliminary & Pre-operative Expenses 27
7.6 Contingencies 27
7.7 Margin Money for Working Capital 27
8. FINANCIAL VIABILITY
8.1 Basis & Assumptions 28
8.2 Cost Summary 31
8.3 Means of Finance 31
8.4 Financial Viability Indicators 32
9. SOCIO-ECONOMIC AND ENVIRONMENTAL
BENEFITS
33
10. CONCLUSIONS & RECOMMENDATIONS
10.1 Project SWOT Analysis 34
10.2 Risk & Mitigates 35
10.3 Key Management Features 37
10.4 Conclusions & Recommendations 37
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed iii
DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT FROM CANE MOLASSES
LIST OF SCHEDULES
Schedule
No.
Title
A Cost of Project & Means of Finance
B Estimated Cost of Production & Profitability Statement
C Debt Service Coverage Ratio
D Cash Flow Statement
E Balance Sheets Forecast
F Analytical & Comparative Ratios
G Breakeven Analysis
H Sensitivity Analysis
I Payback Period
J Internal Rate of Return
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed iv
DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT FROM CANE MOLASSES
LIST OF ANNEXURES
Annexure
No.
Title
1 Particulars of Land and Site Development Costs
2 Particulars of Buildings and Civil Works
3 Details of Indigenous Machinery
4. Miscellaneous Fixed Assets
5 Preliminary and Preoperative Expenses
6 Estimates of Contingency Escalation Provision
7 Working Capital Requirements
8 Estimated Annual Production & Sales Value
9 Particulars of Indigenous Raw Materials
10 Particulars of Consumables
11 Particulars of Utilities
12 Requirement of Direct Labour & Calculation of Wages
13 Particulars of Repair and Maintenance
14 Particulars of Other Manufacturing Expenses
15 Requirement of Administrative Overheads
16 Repayment of Term loans & Calculation of Interest
17 Provisions for Taxation & Dividend (Income tax working)
18 Calculation of Depreciation
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed v
DETAILED PROJECT REPORT (DPR)
ON
80 KLPD ETHANOL PLANT FROM CANE MOLASSES
LIST OF APPENDICES
Appendix
No.
Title
I Company Incorporation Certificate & Memorandum of Association &
Articles of Association
II Promoter Details of PSAPPL
III IEM License for ethanol Plant
IV Annual Reports of PSAPPL
V Land Documents
VI Detailed Process Description and Flow Charts
VII Processes available for Effluent Treatment – Merits and Demerits
VIII Undertaking of PSAPPL for diversion of required quantity of B-heavy
molasses
IX Technical and commercial offers
X Implementation Schedule
XI Preliminary Plant layout
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed vi
DISCLAIMER
1. This Detailed Project Report (hereinafter referred to as Report), the business plan/financial
projections, if any and its contents are confidential. Accordingly, Report and its contents are on basis
that will be held in complete confidential.
2. By accepting a copy of this report, the recipient agrees to keep its contents and any other information,
which is disclosed to such recipient, confidential and shall not divulge, distribute disseminate any
information contained herein, in part of in full, without the prior approval of MITCON Consultancy &
Engineering Services Ltd (MITCON).
3. This report is prepared exclusively for the benefit and for the internal use of the recipient and /or its
affiliates and does not carry any right of publication or disclosure to any other party.
4. The client has engaged MITCON for preparation of Detailed Project Report on 80 KLPD ethanol
plant, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information given by the client which has frequently been referenced in this
report.
5. The Report developed by MITCON has used inputs and conclusions drawn out of discussion with the
client and reference to project specific studies, and other information/documents obtained by
MITCON from various sources/available publicly, which MITCON believes to be reliable. MITCON
has not carries out any independent verification for the truthfulness of the same and its accuracy and
reliability cannot be guaranteed.
6. MITCON and their respective directors, officers, agents, employees and shareholders (collectively
referred to as “Relevant Persons”) expressly disclaim any responsibility or liability for any loss,
damage or inconvenience caused to anybody whether directly or indirectly due to this Report and the
information contained herein. MITCON may be exempted from all errors and omissions in this
Report.
7. This presentation may include future expectation, projections, or forward looking statements. These
forward looking statements involve known and unknown risks, uncertainties and other factors that
may cause actual events to be materially different from future events expressed or implied by such
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subject MITCON and its affiliates to any registration or licensing requirement within such
jurisdiction. Persons in whose possession this document may come are required to inform them of and
to observe such restriction.
Prepared by Checked By
Amit Chaudhari S.C. Natu
Chief Consultant Sr. Vice President Power Division Power Division
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed I
Executive Summary
Project at a Glance
Pingale Sugar & Agro Products Private Ltd. (PSAPPL) is a Company registered in the
State of Maharashtra under the Companies Act, 1956.
PSAPPL has been taken over by Mr. Dilip Shankarrao Apet & Mrs. Shalini Dilip Apet by
purchasing shares & ETC on August 8, 2014. The promoters sensed the great availability
of sugarcane in the region of Gevarai tehsil and increasing demand of power & ethanol
and keeping in view, the needs of the local farmers, those cultivate sugarcane in the
command area.
PSAPPL proposes to set up an integrated new sugar mill of 5000 TCD, eco-friendly 35
MW capacity cogen power project for decentralized generation of exportable surplus
power, mainly from renewable sources of fuel, located near village Selu, 25 km from
Gevarai, which is Taluka headquarter.
PSAPPL, also proposes to set up a 80 KLPD capacity ethanol plant to produce ethanol,
adjacent to the propose sugar plant located at Village Selu, PO Jategaon,Taluka Gevarai,
District Beed, Maharashtra
The proposed ethanol plant project will produce fuel ethanol mainly on own molasses,
molasses available from the other sugar factories. The steam and power requirement for
the proposed plant will be made available from the new slop fired incineration boiler &
back pressure turbine.
Project Rationale
The promoters have extensively and carefully analyzed the present and future scenario of
alcohol and sugar industry. They have also studied carefully the present irrigation
facilities and surplus cane availability, as well as future potential of irrigation and
additional cane availability. The command cane area has excellent irrigation facilities due
to the perennial water source. With this background, the promoters have finalized the said
project. Promoters having experience in sugar industry and sugarcane cultivation, have
been able to foresee the cane potential in the command area.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed II
PSAPPL will generate about 36000 MT of molasses from expected / sustained cane
crushing of 8.00 lakh MT / year, with 4.50% molasses recovery.
The requirement of in –house molasses to run the ethanol plant for at least 160 days as
per SDF norm is 54,468 MT. PSAPPL will utilize 36,000 MT of own molasses and
22.14% or 12,400 MT of B-heavy molasses required to be diverted, for meeting the
shortfall quantity of 18,468 MT of final molasses.
The total requirement of molasses for the 270 days operation of the proposed ethanol
plant at optimum level of operation will be around 91,915 MT. PSAPPL will utilize
54,468 MT of own/B-heavy molasses & the balance 37,447 MT of molasses will be
procured from nearby sugar mills.
The current policies in India are conducive and backed by favorable regulatory
framework for manufacture of fuel ethanol, as well as regarding support for private
investment in such project.
The promoters also have acknowledged in depth, the socio-economic and environmental
value addition of the captioned project to the local people, region, State and the Country,
as well as its win-win situation to all the stakeholders involved.
The Promoters & Project Preparedness
PSAPPL is promoted by:-
Mr. Dilip Shankarrao Apet, Chairman & MD
Mrs. Shalini Diliprao Apet, Director
The CMD of PSAPPL is highly educated and has 35 years of experience in the sugar
industry. His huge practical experience in sugar industry will be immensely helpful in
executing and operating the proposed ethanol project. The management is successfully
operating a sugar unit, M/s. Shambhu Mahadev Sugar & Allied Industries Ltd. at Village
Havargaon, Tal - Kallam, Dist - Osmanabad.
PSAPPL already has 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.
PSAPPL has already obtained IEM from the Ministry of Commerce & Industry, Govt. of
India for setting up 30 KLPD ethanol plant and has already applied for amendment of
IEM for 80 KLPD ethanol plant.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed III
Project in Brief
The proposed ethanol plant of 80 KLPD capacity will employ fermentation, multi
pressure distillation system, evaporation & slop fired incineration boiler. Sugar mill will
supply molasses, while the incineration boiler & turbine will supply steam & power to
the proposed ethanol plant.
Financial Highlights
Project Cost:
(Rs. Lakh)
Particulars Ethanol
Plant
Land and Site Development 150
Buildings 2346
Indigenous Plant and Machinery 9000
Miscellaneous Fixed Assets 80
Prelim. & Preoperative Expenses 590
Contingencies 244
Working capital margin 290
Total 12700
Means of Finance:
(Rs. lakh)
Particulars Ethanol
Plant
PSAPPL Equity / Internal accruals (27%) 3429
SDF Quasi Equity (35%) 4445
Bank / F. I. Loan (38%) 4826
Total 12700
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed IV
First year Fifth year
Estimated W/C Requirements Rs. Lakh 1157 1833
Estimated Annual Turnover Rs. Lakh 4925 8772
Profit Before Tax Rs. Lakh 827 2837
Accumulated Cash Surplus Rs. Lakh 1521 5245
Employment potential Nos. 81 81
Debt Service Coverage Ratio (DSCR) Average 2.38
Maximum 3.82
Minimum 1.35
FACR 1.34
Payback period Years 5 to 6
Rate of Return on total project cost % 19.32 %
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed V
Strengths
The main strengths of this integrated project include:
Background and experience of the promoters
Proposed Sugar Factory & Infrastructure
Commitment & vision of promoters, with forward integration planned right
from beginning
Excellent irrigation facilities with ensured cane cultivation & availability on a
long term basis
Project location in potential sugarcane area
Experienced, willing and committed farmers
Ensured cane availability
Demand supply gap in fuel ethanol in India
Conducive policy / regulatory frame work
High order of socio-economic and environmental value to the local populace
Latest technology equipment with highest efficiency and
Sound techno commercial viability
Risks Factors
Risk Factors Remarks
Industry Risk
The Industry is cyclical and highly regulated. The price of
free sale sugar is directly/indirectly controlled by the govt.
Therefore, the company has been making its operations
integrated, comprising of sugar, cogeneration and ethanol
plant to protect its margins and profitability and avert
cyclicality.
Implementation
Risk
PSAPPL has experienced people in its management team.
Keeping in view overall good track record, it is felt that
PSAPPL has the competence for timely implementation of
project as per the schedule. The ethanol project shall be
implemented on turnkey basis. The ethanol project being
implemented on turnkey basis, will reasonably assure
completion of the project within the envisaged cost.
However, any increase in cost of plant & machinery shall
be met by the internal accruals.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed VI
Operating Risk Though the company is new to the production and
marketing of ethanol, it is in the business of manufacturing
and marketing of sugar with proposed capacity of 5000
TCD & cogen 35 MW. Moreover, the ethanol project is
being implemented on a turnkey basis and will be backed
by suitable clauses in terms of warranty and guarantee. As
such it is felt that the operating risks would be mitigated to
a considerable extent.
Though the availability of adequate quantity of molasses is
also dependent on the supplies from neighboring units to
meet the shortfall, the company has identified nearby sugar
mills from where molasses can be sourced.
Credit Risk Average DSCR of the ethanol project is estimated to be
2.38, which is satisfactory. PSAPPL has been regular in
meeting its commitments to FIs/Banks and SDF.
Financial Risk The company is comfortably placed to infuse its equity
contribution in the project and is awaiting sanction of term
loan from banks. As such, no problem is envisaged
Raw Material Risk PSAPPL has announced a reasonable remunerative price in
line with the market trend and neighboring sugar mills.
Also, it is providing services to educate farmers about the
best practices in sugarcane cultivation for improvements in
the yield. Company is proposes operating a 5000 TCD
Sugar plant & 35 MW cogen power plant in the same
premises as proposed for the ethanol plant. The molasses
required for the ethanol plant shall be readily available
from the sugar plant. The Neighboring sugar mills has
already shown willingness to supply the molasses for
meeting the shortfall.
Market Risk/ off
take risk/ payment
risk
The Govt. of India has allowed mixing 5% ethanol in
petrol and has increased of ethanol percentage to 10%,
recently. Since there is need for huge investment to set up
additional required capacity of 96 million litres of ethanol
by 2017, PSAPPL is not expected to face any problem in
selling the ethanol from proposed project.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed VII
Implementation Schedule
The entire project will be commissioned by October 2016 after the financial
closure expected by October 2015. Meticulous planning and strong project
management proposed will ensure this schedule.
Conclusions
Over all, the project is well conceived and conceptualized, with sound
commercial viability. The expected financial returns are quite satisfactory. The
project is being implemented by promoters having requisite background and
experience and with employment of experienced professionals, experts and
consultants. All perceived risks have adequate safe guards. The project is
recommended for lending by financial institutions, as well as SDF.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 1
CHAPTER – 1
INTRODUCTION
1.1 Project Background
1.1.1 This Detailed Project Report (DPR) has been prepared for M/s Pingale
Sugar & Agro Products Private Ltd. (PSAPPL) by MITCON Consultancy
& Engineering Services Limited (MITCON), Pune, for setting up 80
KLPD ethanol plant from molasses as raw material at Village Village
Selu, PO Jategaon,Taluka Gevarai, District Beed, Maharashtra.
1.1.2 M/s. Pingale Sugar & Agro Products Private Ltd., is a Private Limited
Company registered in the State of Maharashtra under the Companies Act,
1956. PSAPPL has been taken over by Mr. Dilip Shankarrao Apet & Mrs.
Shalini Dilip Apet by purchasing shares & ETC on August 8, 2014.
Appendix I gives certificate of incorporation & commencement of
business and Memorandum of Association & Articles of Association of
PSAPPL.
PSAPPL proposes to set up an integrated new sugar mill of 5000 TCD,
eco-friendly 35 MW capacity cogen power project for decentralized
generation of exportable surplus power, mainly from renewable sources of
fuel, located near Village Selu, PO Jategaon,Taluka Gevarai, District
Beed, Maharashtra.
1.1.3 PSAPPL has already obtained IEM from the Ministry of Commerce &
Industry, Govt. of India for setting up 30 KLPD ethanol plant and has
already applied for amendment of IEM for 80 KLPD ethanol plant.
Appendix III gives IEM license for ethanol plant
1.1.5 Water required for the proposed fuel ethanol plant will be made available
through existing water supply scheme / existing wells.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 2
1.2 Promoter’s Background & Experience
PSAPPL is promoted by:-
Mr. Dilip Shankarrao Apet, Chairman & MD
Mrs. Shalini Diliprao Apet, Director
The CMD of PSAPPL is highly educated and has 35 years of experience in the
sugar industry. His huge practical experience in sugar industry will be immensely
helpful in executing and operating the proposed cogen project. The management
is successfully operating a sugar unit, M/s. Shambhu Mahadev Sugar & Allied
Industries Ltd. at Village Havargaon, Tal - Kallam, Dist - Osmanabad.
Appendix-II gives the Promoter Details of PSAPPL.
After scrutinizing the bio-data and experience of key Directors, it is identified that
the management of PSAPPL is capable of undertaking the captioned integrated
project.
Under the guidance of Shri Dilip Shankarrao Apet, CMD with his management
team have already carried out several activities in the command area, including
land acquisition, site development etc. PSAPPL is also planning for cane
development in command area.
A dedicated Project Team of PSAPPL has been functioning since March, 2015,
along with appointed experts and consultants, for speedy and successful
commissioning of this project.
PSAPPL already has appointed a technical / managerial team of highly qualified
engineers, contractors & arbitration experts, agricultural officers and managerial
personnel for implementation and operation of the ethanol project.
1.3 Sugarcane Potential in Command Area of PSAPPL:
In the light of the new sugar policy, with almost total decontrol, the cane
command area of the proposed sugar factory is expected to fall in Command area
of Gevarai and nearby tehsils like Beed, Majalgaon, Wadwani in the Beed district
and Ghansawani & Ambad from Jalna District.
There are 9 sugar factories in this district. Out of which 4 were operating for the
year of 2013-14 with installed crushing capacity of 16200 MT/day. Annual
crushing for season 2013-14 was 15.72 lakh MT at the average recovery of
9.76%.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 3
The command area comprises of six tehsils. Gevarai, Beed, Majalgaon,
Wadawani from Beed District along with Ghanasawangi & Ambad from Jalna
district. The total area under sugarcane cultivation of these six tehsils is 33594 ha,
with total sugarcane production of 2687520 MT.
Table No. Details of the Generation of Sugar Cane
Sr.
No.
Name of the Tehsil in
the command area
Area under sugar
cane cultivation, Ha
Cane Production
MT
1 Gevarai 1922 153760
2 Beed 2238 179040
3 Majalgaon 7641 611280
4 Wadwani 3780 302400
5 Ghansawangi 4828 386240
6 Ambad 13185 1054800
Total 33594 2687520
The sugarcane consumption of 8 sugar factories in the command area is around
14.78 lakh MT considering their area shared in the command area of PSAPPL.
Considering the cane requirement for 5000 TCD average capacity, for maximum
160 days of crushing, require about 8 lakh MT of sugarcane. Hence, the surplus
cane of 12.10 lakh MT available for the proposed sugar mills will be sufficient.
Molasses % on cane in the command area:
There are 8 sugar factories in the command area of PSAPPL. Out of which 3
factories are closed & 5 factories are operating. The average generation of
molasses of nearby 5 sugar factories is given below:
Sr.
No.
Name of the Sugar Factory Avg. generation of
molasses, % cane
1 Majalgaon SSKL, Shivajinagar, Taluka: Gevrai, Dist.
Beed
4.25%
2 NSL Sugar Ltd., (Jai Mahesh), Unit 3, Pawarwadi,
Taluka: Majalgaon, Dist: Beed
4.90%
3 Samrudhhi Sugars Ltd., Renukanagar,
Devidahegaon, Taluka: Ghansawangi, Dist: Jalna
4.83%
4 Samarth SSKL., Ankushnagar, Taluka: Ambad, Dist:
Jalna
4.25%
5 Chhatrapati SSKL., Sawargaon, Taluka: Majalgaon,
Dist: Beed
4.44%
Average % of Molasses on Cane 4.53%
Command area has average molasses generation of about 4.53%. The molasses
generation on estimated crushing of PSAPPL has been considered at 4.5%
accordingly.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 4
1.4 Ethanol Industry
1.4.1 Industry Overview
Ethanol is used as an automotive fuel by itself and can be mixed with
gasoline to form what has been called "gasohol" FUEL ETHANOL- the
most common blends contain 10% ethanol and 85% ethanol mixed with
gasoline. Over 1 billion gallons of ethanol are blended with gasoline every
year in the United States. Because the ethanol molecule contains oxygen,
it allows the engine to more completely combust the fuel, resulting in
fewer emissions. Since ethanol is produced from plants that harness the
power of the sun, ethanol is also considered a renewable fuel. Therefore,
ethanol has many advantages as an automotive fuel.
Molasses is one of byproducts of sugar industry which is used to produce
rectified spirit/alcohol for making liquor and fuel. Traditionally, molasses
has been used in India to produce rectified spirit and alcohol of higher
than 95% purity for producing liquor for human consumption and for
producing various chemicals. However, with technological developments
in the recent past, molasses has been effectively used to produce bio-
ethanol for blending with petrol as a fuel.
1.4.2 Global Scenario
Brazil is the second largest producer of ethanol globally after U.S. While
U.S. produces ethanol from corn, Brazil manufactures ethanol from
sugarcane. Brazil has mandatory blending ratio of ethanol in gasoline
ranging from 18% to 25%. The blend rate was as high as 25% before
September 2011 and was reduced to 20% due to drop in cane output hence
affecting the ethanol production. Currently, flex-fuel cars, which can use
either ethanol or blended gasoline, in Brazil account for about 53% of the
total car fleet and around 90% of the new vehicles’ sales. The proportion
of the flex-fuel cars are expected to cross 80% by 2020. Currently, the
Brazilian light vehicle fleet has been increasing by 6.7% y-o-y since 2003
with currently 90% of the new vehicles being flex-fuel cars. Thus, there
exists an increasing demand in Brazil for ethanol which is encouraging for
the sugarcane industry.
1.4.3 Indian Scenario
The Indian sugar industry today is at a very critical juncture and needs
investments for expansion, modernization, as well as implementation of
ethanol plants & cogeneration power plants, for their long term
integration. The recent Government policy has pegged 5% ethanol
blending with fuel (with possibility to extend to 10% shortly), at an
attractive price of Rs. 48.50/Liter. for ethanol. This provides an excellent
opportunity to the sugar factories to implement ethanol projects in the
immediate future.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 5
There are 429 distilleries in India, 216 connected to sugar factories & 213
standalone, with about 100 distilleries having installed ethanol
manufacturing facilities, which can produce over 5 billion litres of
rectified spirit (alcohol) per year in addition to 2 billion litres of fuel
ethanol. Despite of conducive policy environment today, the ethanol
industry still faces several issues regarding timely evacuation of ethanol
by the petroleum companies, payments, etc., as well as strict pollution
control norms imposed by the Central & State Governments and financing
by banks / financial institutions / SDF.
The Central Pollution Control Board (CPCB) has prescribed and
implemented zero discharge norms from effluent for the distillery industry
with effect from January 01, 2006. CPCB had provided about three year
time to the distillery industry to achieve zero discharge through any
process of distillery effluent treatment suitable to each distillery. The
current stringent pollution control policies & norms for effluent through
distilleries have made many distilleries to shut down their operations,
thereby making heavy losses with the investments becoming dead.
Deployment of Incineration Type (Slop Fired) boiler has proved to be an
effective solution in resolving this issue.
Today, Indian distillery industry broadly consists of two parts:
Production of alcohol from molasses for industrial alcohol.
Production of alcohol from molasses for liquor purposes.
Ethanol demand for fuel blending is a recent phenomenon. For this
purpose, alcohol from molasses is used.
The potable distillery producing Indian Made Foreign Liquor (IMFL) has
a steady but limited demand. The alcohol produced is now being utilized
in the ratio of approximately 52 per cent for potable purpose and the
balance 48 percent for industrial purpose.
1.4.4 Demand of Ethanol:
Since 1977, several technical committees and study groups have examined
the issue of blend of Ethanol with petrol. Announcements were made on
this issue in Parliament in December 2001 and March 2002. Auto fuel
policy was declared in August 2002.
The Ministry of Petroleum, recently issued a gazette notification, dated
11th of January, 2013 making 5% ethanol blending with petrol mandatory
across the country. The 5% ethanol blending programme was so far made
applicable in only 13 states of the country with blending level of about 2%
against a mandatory target of 5%, but with this gazette notification it
becomes mandatory for OMCs to achieve 5% ethanol blending
programme for the entire country.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 6
The Report of the Committee on Development of Biofuels was published
by the Planning Commission of India. It gave projections of demand and
supply of ethanol for India for the end of each five-year plan. This table
shows the break-up of production and consumption of ethanol in terms of
molasses and cane.
Projections of demand and supply of ethanol (Million Liters)
Year Ethanol Production Ethanol Utilization Ethanol
Blending
Petrol
Demand Molasses Cane Total Industry Potable Balance
2001-02 1775 0 1775 600 648 527
5% 448
8960 10% 896
20% 1792
2006-07 2300 1485 3785 711 765 2309
5% 638
12672 10% 1276
20% 2552
2011-12 2300 1485 3785 844 887 2054
5% 814
16286 10% 1628
20% 3257
2016-17 2300 1485 3785 1003 1028 1754
5% 1039
20785 10% 2078
20% 4157
(Source:-Planning Commission)
From the above table it can be concluded that actual production of ethanol
in India has not kept pace with the demand. Also with robust growth for
chemical and potable industries it will mean greater shortage of ethanol in
the coming years ahead.
1.4.5 Government Policy
In 2006, GOI mandated 5% ethanol blending with petrol (EBP)
programme to directly benefit the sugarcane farmers by assuring the sugar
industry a stable and reasonable return for the molasses and then passing a
significant part of the same to the farmers. But since then the programme
has been struggling to take off despite the fact that the Cabinet Committee
on Economic Affairs (CCEA) in November 2009 directed that a financial
penalty be imposed on OMCs for their failure to reach targets.
In August 2010, the CCEA set up the Saumitra Chaudhuri committee for
determining the ethanol pricing after a Committee of Secretaries (CoS)
failed to reach at a consensus. So far, the OMCs have been contracting
ethanol at the provisional procurement price of Rs 27 per litre, fixed by the
CCEA that time. The Ministry of Petroleum and Oil Marketing
Companies (OMCs) put a specific condition in September 2010, that
ethanol should be produced from domestic molasses only i.e., molasses or
alcohol cannot be imported by the ethanol producers and has to be
produced only from molasses and not sugarcane juice or food grains.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 7
In November 2012, the CCEA has made it mandatory for Oil marketing
companies (OMCs) - Bharat Petroleum, Hindustan Petroleum and Indian
Oil Corporation - to blend 5% ethanol with petrol. This is likely to reduce
the fuel import bill and lower India's dependence on fossil fuel as the
ethanol prices are lower than petrol. OMCs have been blending ethanol
with petrol for the past two years but the policy was partially implemented
in absence of any clear directive. The Committee, headed by the Prime
Minister, has also approved market-based pricing of the biofuel, opening
the market for ethanol producers - mostly sugar companies. This shall
result in an increased demand for ethanol by OMCs.
The national bio-fuel policy, approved by the Government of India, has
plans for a 20% ethanol blending programme by 2017 from the current
mandated 5% blending & recently increased to 10%, to reduce India’s
dependence on fossil fuel imports.
1.5 Objectives & Scope of Work
The objective of the assignment was to prepare Detailed Project Report (DPR) on
the captioned ethanol plant being set up at Village Selu, PO Jategaon,Taluka
Gevarai, District Beed, Maharashtra, in line with the requirements of the financial
institutions.
PSAPPL appointed MITCON Consultancy & Engineering Services Ltd.
(MITCON), Pune for preparation of this Detailed Project Report.
The scope of work mainly included review of the promoter background, project
concept, design and key parameters, technical specifications, plant layout,
environmental & social considerations, project preparedness, estimated capital
expenditure, financial viability, conclusions and recommendations.
1.6 Methodology
For preparing this Detailed Project Report, MITCON deputed a task team of in-
house coordinators and expert associates. MITCON submitted list of data /
information / documents required for preparation of DPR. MITCON’s task team
undertook visit to factory site. The budgetary estimates for this DPR, for major
plant and equipment, were procured from competent suppliers.
1.7 Acknowledgements
We wish to record deep sense of gratitude to PSAPPL management, for entrusting
this challenging assignment. In particular, we are thankful to Dilip Apet, Founder
Chairman, Mr. J.D. Mamadge, Chief Executive Officer, Mr. Aniket Salunke and
all other concerned staff of PSAPPL, for providing required guidance and data
support.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 8
CHAPTER – 2
PRODUCTS & PROCESS
2.1 Products
The proposed ethanol plant will undertake manufacture of following product:
Fuel Ethanol of 80 KLPD capacity
Appendix IX - gives the details of the technical and commercial offer.
2.2 Process
The brief manufacturing processes for project component are given below:
The process envisages use of own & B-heavy as well as procured molasses from
nearby sugar factories for manufacture of ethanol during sugar mill season and
during off-season days.
Cane crushing system
Fermentation system
Distillation & Fuel Ethanol
Effluent treatment system
Following is a brief description of the process:
2.2.1 Cane crushing system
The crushing capacity of sugar mill is 5000 TCD. All the molasses
generated in the boiling house will be stored / utilized for the ethanol
plant. The molasses recovered during manufacture of sugar will be 4.5%
of cane. The net generation of the molasses at optimum level of operation
will be 36000 MT. To balance the requirement of molasses, the other
nearby sugar mills will be utilized by PSAPPL.
2.2.2 Fermentation system
The molasses stored in the storage tanks will be supplied to the fermentor,
where it will be diluted partly by water and partly by the effluent produced
by the ethanol plant and then fermented in a continuous fermentation
reaction.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 9
2.2.3 Distillation
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 ethanol plant will produce 80000 liters of total spirit per day & 76,000
litres per day ethanol that will be sold to the oil companies for blending
with petroleum products.
Appendix – VI gives detailed process description and flow charts.
2.2.4 Effluent treatment system
The spent wash of a distillery process is a serious problem by way of
threat to the environment. Its volume from continuous fermentation plant
is as large as 7.56 TPH for a distillery of 80 KL/day capacity based on
multi pressure distillation with integrated evaporator system.
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 with in 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 spent
wash with in less period of time.
The concentrated spent wash generated after entire process of evaporation
is then sprayed in a furnace with support fuel bagasse and is then burnt in
a boiler.
Choice of Spent wash Treatment System
In order to fulfill the Pollution Norms and to achieve zero Discharge and
at the same time to operate ethanol plant for the period more than 270 days
per annum, PSAPPL proposes to go for spent wash Concentration and
Incineration Technology simultaneously generating Steam and Power for
the process and Ethanol plant.
With effective utilization of such a technology big hurdle of spent wash
disposal will be solved and distilleries will become zero effluent
discharging unit.
Refer Appendix – VII for processes available and their merits and
demerits for effluent treatment.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 10
2.2.5 Condensate Polishing Unit
The condensate polishing unit is also envisaged to take care of spentlees,
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.
2.3 Requirement of Molasses:
The requirement of in –house molasses to run the ethanol plant for at least 160
days as per SDF norm is 54,468 MT. PSAPPL will utilize 36,000 MT of own
molasses and 22.14% or 12,400 MT of B-heavy molasses required to be diverted,
for meeting the shortfall quantity of 18,468 MT of final molasses.
2.3.1 Use of B-heavy molasses:
The entire process & advantages of Ethanol production by B-heavy
molasses route for meeting the shortfall in the molasses quantity, is
explained as below.
There is practically no change in the manufacturing process for
Ethanol production, only the source of molasses is both from low
purity molasses available from C curing of the sugar process and
from diversion of required quantity of B-heavy molasses after B
curing.
No need of any additional investment and machinery for this
diversion and meeting the molasses shortfall, except minor piping
and accessories
Flexibility for starting & stopping within no time gap, as per the
market position for Sugar or Ethanol
Improvement in sugar quality thereby increasing revenue
Increase in the boiling house capacity to the extent of diversion of
B-heavy molasses, due to increase in consequent pan capacity and
reduction in massecuite % cane
Reduction in steam consumption, resulting in additional bagasse
saving
Possibility of storage of B-heavy molasses, in the same final
molasses storage tanks
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 11
The calculation of requirement of B-heavy molasses diversion, to
meet the molasses shortfall is given below:
Requirement of Molasses & B Heavy molasses for 160 days
1 Final Molasses required for proposed 80 KLPD Ethanol plant for
160 days ( 80000/235 x 160), MT
54468
2 Present availability of molasses @ 4.5 % on cane for 5000 TCD
sugar plant for 160 days ( 5000 x 160 x 4.5 %), MT
36000
3 Shortage of own molasses for proposed 80 KLPD Ethanol plant (
1-2), MT
18468
4 B-heavy molasses production from 5000 TCD sugar plant @ 7%
on cane for 160 days. i.e. (5000 x 160 x 7 %), MT
56000
5 Recovery of ethanol from Final molasses, Lits/MT as per SDF
norms
235
6 Recovery of ethanol from B-heavy molasses, Lits/MT
Ethanol Recovery =
(Fermentable Sugar x Ethanol Conversion Factor x Fermentation
efficiency x Distillation efficiency x Dehydration efficiency ) /
Alcohol Strength
Fermentable Sugar = 61 % ,
(based on latest RT 8 ( c ) records giving B heavy molasses purity
and reasonable assumptions thereof, as special analysis for B
heavy molasses is unavailable with the sugar factory, as no
diversion is made till date )
Ethanol Conversion Factor
= Sucrose to Alcohol Factor x 1000 / Alcohol Specific Gravity
= (0.5111 x 1000 /0.794) = 644
Fermentation efficiency = 90%
Distillation efficiency = 98.5%
Dehydration efficiency = 99.6%
Alcohol Strength = 99.8%
350
7 The quantity of B-heavy molasses (of 65 to 70 TRS) required to
be diverted for meeting balance molasses requirement ( 18468 x
235 / 350), MT
12400
8 The percentage of diversion of B-heavy molasses, % (12400 MT/
56000 MT)
22.14%
Refer Appendix – VIII for undertaking of PSAPPL for diversion
of required quantity of B-heavy molasses, to meet the short fall in
molasses quantity.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 12
2.3.2 Molasses balance:
The total requirement of molasses for the 270 days operation of the
proposed ethanol plant at optimum level of operation will be around
91,915 MT. PSAPPL will utilize 54,468 MT of own/B-heavy molasses &
the balance 37,447 MT of molasses will be procured from nearby sugar
mills.
The installed capacity and capacity utilization levels for ethanol plant and
respective annual requirement of molasses have been shown in the
following table:
Sr.
No.
Particulars Projected
2016-17 2017-18 2018-19 2019-20 100%
capacity
Utilization
1 Estimated annual crushing in LMT 8.00 8.00 8.00 8.00 8.00
2 Molasses recovery, % cane 4.50 4.50 4.50 4.50 4.50
3 Production of own molasses, MT 36000 36000 36000 36000 36000
4
Installed Capacity of Ethanol Plant,
KLPD 80 80 80 80 80
5
Ethanol yield from cane molasses as
per SDF Norm, lit/MT 235 235 235 235 235
6
Requirement of Molasses for 80
KLPD Ethanol Plant for 160 days, MT 54468 54468 54468 54468 54468
7 Capacity Utilization, % 80% 85% 90% 95% 100%
8
Requirement of Molasses for 80
KLPD Ethanol Plant for 160 days, MT 43574 46298 49021 51745 54468
9 Deficit of molasses for 160 days, MT -7574 -10298 -13021 -15745 -18468
10
Recovery of ethanol from B-heavy
molasses, Lits/MT 350 350 350 350 350
11
Requirement of B-heavy molasses,
MT 5086 6914 8743 10571 12400
12
Requirement of Molasses for 80
KLPD Ethanol Plant for 270 days, MT 73532 78128 82723 87319 91915
13
Molasses procured from nearby sugar
mills for 270 days, MT 29957 31830 33702 35574 37447
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 13
CHAPTER – 3
SITE DETAILS AND INFRASTRUCTURE
3.1 Project Site, Key Features
3.1.1 Site Location
Village Selu
Taluka Gevarai
District Beed
Nearest Taluka Gevarai, 25 Km
Nearest Water Source Godavari River, 10 Km
Nearest Electrical Substation 132 kV, located at Gevarai at 20 Km
The proposed site is ideal for the proposed ethanol project, due to
following reasons:
- Required land is available at the project site and is owned by PSAPPL
- The site is easily accessible by road
- The site is located at Village Village Selu, PO Jategaon, Taluka
Gevarai, Dist. Beed, Maharashtra, which has very good ground water
availability and is near to the perennial source of water
- The cane availability and potential in the command area is excellent
and will ensure sustained cane availability.
- The plant will operate on own & procured molasses
3.1.2 Infrastructure
The site has easy access to latest communication and other social
infrastructure facilities, including telecommunication, medical & health
facilities, commercial infrastructure, etc.
The process steam & power required at 3.5 kg/cm2 for the proposed
ethanol plant which will be met through 32 TPH, 45 kg/cm2 slop fired
boiler and matching 4 MW turbine.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 14
3.1.3 Manpower
The skilled manpower required for operation of ethanol plant are being
appointed. PSAPPL is in a process of appointing required manpower for
fuel ethanol plant and has already appointed key top management
positions for the purpose.
3.1.4 Effluent Disposal
Due care will be taken in design, implementation and operation of the
captioned project for satisfactory disposal and effective utilization of plant
effluents, waste water and colony waste water. Scientific treatment will be
given to ensure that waste water from all sources needs the norms
stipulated by the Maharashtra State Pollution Control Board. The effluent
/ spent wash will be concentrated in evaporators. The concentrated spent
wash generated after entire process of evaporation is then sprayed in a
furnace with auxiliary support fuel bagasse and is then burnt in a boiler.
In order to fulfill the Pollution Norms and to achieve zero Discharge and
at the same time to operate ethanol plant for the period more than 270 days
per annum, PSAPPL proposes to go for spentwash Concentration and
Incineration Technology simultaneously generating Steam and Power for
the process and Ethanol plant.
With effective utilization of such a technology big hurdle of spent wash
disposal will be solved and distilleries will become zero effluent discharge
unit.
3.2 Raw Materials
3.2.1 Raw Materials for Fuel Ethanol Plant
The total requirement of molasses for the 270 days operation of the
proposed ethanol plant at optimum level of operation will be around
91,915 MT. PSAPPL will utilize 54,468 MT of own/B-heavy molasses
& the balance 37,447 MT of molasses will be procured from nearby
sugar mills.
It is concluded that PSAPPL can easily generate the required quantity
of molasses and procured molasses from nearby sugar mills to operate
plant for 270 days.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 15
3.3 Utilities & Consumables
3.3.1 Water and power are the main utilities required for operating the project.
Water will be drawn from the existing water scheme of sugar mill or
through own wells / borewells.
Additionally, DG set of required capacity will be installed.
3.3.2 The consumables required for operation of ethanol plant include,
laboratory and chemicals, oils / lubricants and other, etc.
The consumables indicated above will be available in substantial
quantities from nearby Gevarai town, and no difficulty will be envisaged.
3.4 Manpower
The total direct manpower required for the project has been estimated at 81. It is
most essential for PSAPPL to define the organization structure for the ethanol
plant.
It is most essential that the experienced and well qualified manpower is employed
right from the project development / implementation period, through
advertisement or through head hunting exercise, particularly for the top and key
positions. Manpower training and skill up-gradation must become an integral part
of the HRD policy.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 16
CHAPTER – 4
DESIGN BASIS
4.1 Introduction
The design basis & configuration for the fuel ethanol from molasses project has
been elaborated in the following paragraphs.
4.2 Design Basis, Fuel Ethanol from molasses
4.2.1 The working parameters of the sugar factory are as under
Bagasse % cane – 30
Molasses % cane – 4.5
4.2.2 Synopsis of ethanol plant operation
Total crushing, lakh MT : 8.00
Molasses % cane : 4.5
Installed capacity of
Ethanol Plant, KLPD
85,000 LPD of Total Spirit (TS) with
minimum strength of 95% v/v.
80,750 LPD of Rectified Spirit with
minimum strength of 95 % v/v.
OR
80,000 LPD of Extra Neutral Alcohol
with minimum strength of 96 % v/v.
AND
80,000 LPD of Absolute Alcohol with
minimum strength of 99.8% v/v (RS to
AA mode)
Fuel Ethanol plant working
days, Nos.
: 270
Fuel Ethanol yield from
molasses
: 235 lit / MT
Fuel Ethanol yield from B
B-heavy molasses
: 350 lit / MT
Molasses required for
optimum level of operation
: 91,915 MT P.A.
Own molasses production : 36,000 MT P.A.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 17
The quantity of B-heavy
molasses (of 65 to 70 TRS)
required to be diverted for
meeting balance molasses
requirement ( 18468 x 235 /
350), MT
: 12,400 MT P.A.
Procured molasses from
nearby sugar mill
: 37,447 MT P.A.
4.2.3 Input requirement & Specification for Ethanol plant:
1 Raw Material: Molasses with 42%
w/w Fermentable Sugars
About 340 - 345 MT/Day
2 RS Requirement for MSDH Plant 80.75 KLPD @ 95 w/w% Alcohol
strength.
3 Steam Requirement:
Distillation Process
Dehyadration Section
Evaporation
2.2 kg per liter of TS (RS)
3.2 kg per liter of TS (ENA)
0.55 kg per liter of TS
0.6 kg per liter of TS
4 Process Water for Dilution in
Fermentation
About 680 m3/day
5 Soft Water for FO decanter,
alcohol scrubber, Pump sealing,
etc
About 490 m3 / day
6 Cooling Water Circulation Fermentation at ΔT – 3OC – 600 m3/hr
Distillation & Int. Evaporator at ΔT –
8OC – 940 m3/hr
Dehydration at ΔT – 8OC – 120 m3/hr
Independent Evap at ΔT – 3OC – 120
m3/hr
7 Make up DM Water
Requirement
95 - 100 m3/day
8 Chemical Requirement Sulphuric acid
Antifoam agent
Nutrients
Biocides
Descalling agent
9 Power Requirement- 415 V/4
Wire/3 Phase Frequency:
50Hz – Consumed Load
without Standby motors
1100 KW
10 Spent wash after evaporation 7.56 Ton/hr
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 18
4.2.4 Utility requirements
Steam – The ethanol plant employs multi pressure system for
achieving steam economy. The working steam pressure is 3.5
kg/cm2g. The steam from back pressure turbine will be supplied to
fuel ethanol plant using 32 TPH slop fired spent wash Incineration
boiler.
The Technical Specifications for slop fired spent wash Incineration
boiler for the proposed fuel ethanol plant will be as under:
Type Single drum, Double pass furnace,
top membrane wall, pulsating grate
boiler
MCR 32 Tones per Hour
Pressure at superheated outlet 45 kg/cm2 (g)
Temperature of steam at
superheated outlet
400 ± 5º C
Temperature of flue gases at
furnace outlet
700ºC (approx.)
Feed water temp. at inlet of feed
water tank
85 deg C
Temp. of flue gases at outlet 180±5 deg C
Fuel Slop + Bagasse / Indian / Imported
Coal
Efficiency 67% on 60% spent wash + 40%
coal
Or
61% on 60% spent wash + 40%
bagasse
Ultimate Fuel
Analysis (In %)
Slop Bagasse Indian
Coal
Imported
Coal
Carbon 28.25 23.50 39.90 55.45
Hydrogen 3.40 3.25 2.48 5.49
Oxygen 13.24 21.75 6.76 10.76
Moisture 40.54 50 10.00 20.00
Ash 14.28 1.50 39.81 7.00
Sulphur 0.00 0 0.38 00.30
Nitrogen 1.01 0 0.67 1.00
GCV(Kcal/kg) 1700 2272 3800 5200
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 19
Power –The total power requirement will be met through 4 MW back
pressure turbine with no suplus power for export to grid.
The Technical Specifications for Back Pressure TG Set for the
proposed fuel ethanol plant will be as under:
Type Back Pressure type
Rating of Turbine 4 MW
Boiler Steam Parameter
Pressure
Temperature
40 kg/cm2 (g)
400 ± 5º C
Turbine Back Pressure 3.5 kg/cm2 (g)
Steam flow at turbine 100 (max.)
Power Factor 0.8
Generation voltage 440 V
Ambient Temperature for
Electrical Equipment Design
50 deg C
Parallel operation with grid Future facility to synchronize
with grid
Cooling Tower For Fermentation
Cooling Tower for Distillation, Ethanol
Cooling Tower for standalone evaporation
Condensate Policing Unit
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 20
CHAPTER – 5
PLANT LAYOUT
5.1 Layout Considerations
5.1.1 Layout design issues
Major layout design issues, which have been considered while developing
the proposed plant layout, are as follows:
Vastu Shastra
Available land for the project at site location
Topography of the land and contour limitations
Area requirements for various plant buildings, storage areas, admin
building, miscellaneous areas, etc.
Direction / velocities of wind.
Optimum men and material movement
Minimum length of high pressure piping
Minimum lengths of interface systems between the fuel ethanol plant
and sugar mill
Disposal of ash / spent wash
5.1.2 Area requirement & Layout
PSAPPL has earmarked 10 acres of land for the proposed fuel ethanol
project which is sufficient.
Refer Appendix – XI for proposed preliminary plant layout.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 21
5.2 Ash, Effluent & Sewage Disposal
5.2.1 Ash
Annual ash generation from use of slop (effluent) & bagasse for boiler for
fuel ethanol manufacture will be mixed with the press mud or will be sold
to brick manufacturers.
5.2.2 Effluent
The proposed scheme for treatment of spent wash will be evaporated at 60
brix and will be burnt in slop fired boiler along with bagasse. Therefore,
there will be zero discharge of effluent.
5.2.3 Sewage
All sewage will be collected in a common septic tank and discharged as
per accepted norms.
5.3 Plant Layout
5.3.1 General
The proposed fuel ethanol plant will be located adjacent to the existing
sugar mill.
5.4 Approach & Internal Roads
The site is easily accessible with approach road already existing and thereby not
requiring any additional approach road. Required internal roads for movement of
men and material will have to be constructed within the plant area.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 22
CHAPTER – 6
PROJECT PREPAREDNESS AND IMPLEMENTATION
SCHEDULE
6.1 NoC’s / Approvals / Permissions
List of NoC’s / Approvals / Permissions required & their status as of June, 2015 is
indicated in the following table:
Project Component / Item Status
of NoC / Approval Completed Under Process Yet to start
General
Registration of PSAPPL
Excise, sales tax, professional
tax & income tax registrations
PF / ESI registrations licenses
Consent to Establish from
MPCB
Consent to Operate from MPCB
Environment Clearance from
MoEF, GoI
NoC from local gram panchayat
IEM license for ethanol
(amendment)
Letter of Intent from State
Excise
Electrical Inspector approval
Factory Inspector approval
Boiler Inspector approval
6.2 Management & Administration
PSAPPL has already deployed a competent Project Team for developing and
implementing this project at Selu. The PSAPPL Board will take a review of
progress of work on a monthly basis, to ensure speedy and successful
implementation of this project.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 23
6.3 Technical & Financial Tie Ups
PSAPPL has the experience and know how for adopting the latest technologies.
Consultants and experts will be appointed, as and when required, during the
development and implementation of this project. PSAPPL already has appointed
MITCON Consultancy & Engineering Services Ltd., for preparation of DPR.
PSAPPL will bring in the required equity through internal accruals, as well as
provide the negotiated securities to the bankers and financial institutions.
PSAPPL proposes to approach nationalized banks / Financial Institutions for
availing term loan / working capital facilities. PSAPPL is looking forward to avail
loan from SDF for the proposed fuel ethanol plant.
PSAPPL will not face any difficulty for arranging technical and financial tie-ups
required for the captioned project.
6.4 Project Management
The project management for the proposed project will be under able leadership of
CMD / Directors. The appointed experts, consultants and PSAPPL’s existing
sugar mill staff will together work in tandem and develop / implement this
project.
Required top-level manpower will be appointed. Project monitoring /
management will be almost on daily basis and as per the final bar chart /
implementation schedule, developed after ordering of main plant and equipment.
6.5 Implementation Schedule
6.5.1 Project Implementation
For implementing this 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:
Effecting timely project development activities, including securing
various approvals / NoC’s / permissions for each component of the
project.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 24
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.
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. PSAPPL has experienced in-house project
team for the purpose.
Manpower and resource mobilization at required time and effectively
6.5.2 Project Schedule
The zero date of the project starts from the date of achieving financial
closure, expected to complete within 2 to 3 month. The total
implementation period is estimated at 12 to 15 months.
The detailed PERT / CPM networks for individual components and overall
project will have to be prepared by the time of achieving the financial
closure. Normally the major activities after the financial closure for each
component includes,
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
Appendix X gives implementation schedule.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 25
CHAPTER – 7
ESTIMATED CAPITAL EXPENDITURE
7.1 Land & Site Development (Refer Annexure – 1)
PSAPPL has already earmarked 10 acres of land for the proposed fuel ethanol
plant.
The site development expenses is estimated at Rs.150 lakh which include
leveling, fencing, gates, internal roads, green belt development, etc.
7.2 Civil Works (Refer Annexure – 2)
The main civil works for the fuel ethanol plant and their estimated costs are
indicated in the following table.
Item Cost, Rs.
Lakh
Main plant building, admin building, lab, Excise Office, stores
Weigh bridge, storage, ethanol plant machinery foundations,
Structural for evaporation, distillation & fermentation, Pipe Racks,
Cooling tower civil works (Basin Only), Raw water tank, Treated
Water storage tanks, Fire water storage tank, Raw & Concentrated
Spent wash holding tank, Condensate Polishing Unit civil work,
Boiler foundations & Axillaries (0.00 Lvl), Turbine foundations
(0.00 Lvl), DG set foundation, structural work for Boiler &
Turbine (0.00 Lvl), Ash & Fuel handling system foundations etc.,
staging structure and foundations
2300.00
Architect fees (2%) 46.00
Total 2346.00
Based on the actual civil costs incurred for similar capacity fuel ethanol plant and
preliminary estimates from the project architect, the civil estimates have been
worked out at Rs.2346 lakh, including Architect’s fees. The appointed architect
for the project will work out detailed estimates and civil drawings (based on the
inputs received by the equipment suppliers and labour / material rates at the site
location).
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 26
7.3 Equipment (Refer Annexure 3 )
The main items of equipment for the fuel ethanol plant and their estimated erected
costs are given in the following table:
Item and brief specifications Estimated
Erected Cost,
Rs. lakh
1) 80 KLPD Capacity ethanol plant plant, including incl. molasses
handling section, fermentation section, Multi-Pressure
Distillation & Ethanol, Independent Evaporation System for
spent wash concentration, Utility Equipment - Cooling Towers,
Compressor, Condensate Polishing Unit, Blower & Chilling
Plant, Alcohol Storage & auxiliaries, interface piping, electrical
& instrumentation, Air compressor, structural work, Erection &
Commissioning etc.
4250.00
2) 32 TPH Capacity, 45 kg/cm2 pressure slop fired Boiler &
auxiliaries
2000.00
3) 4 MW Capacity matching back pressure TG set & auxiliaries 450.00
4) Balance of Plant equipment incl. Bulk Molasses storage section
along molasses handling & Transfer, Fire Fighting, Weigh
Bridge, Lab Equipment, PRDS, Steam HP & LP Piping, Yard
Piping, CPU, Water Treatment Plant and internal piping up to
battery limit DCS, Air conditioning and ventilation. etc. 800.00
Sub-total including erection & commissioning, packing forwarding,
insurance, etc. 7500.00
Avg. Taxes & Duties (20%) 1500.00
Total 9000.00
Based on the budgetary offers received from reputed machinery suppliers &
possible negotiation margins, the estimated erected cost of plant and equipment
for the proposed fuel ethanol plant including Boiler & Turbine has been worked
out at Rs.9000 lakh.
7.4 Miscellaneous Fixed Assets (Refer Annexure – 4)
The major miscellaneous fixed assets for the fuel ethanol plant, include Office
Furniture and Fixtures, Items out of battery limits such as steam line, water line,
molasses line, yard piping, etc, Lab Equipment, etc. The Misc. fixed assets for
fuel ethanol plant accumulate to Rs. 80.00 lakh.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 27
7.5 Preliminary & Pre-operative Expenses (Refer Annexure – 5)
The preliminary expenses include expenses for preparation of DPRs / Tender
documents, and legal / administrative expenses.
The pre-operative expenses include establishment charges, Government
Clearances, Establishment, Rent, rates and taxes, Travelling Expenses, Start up
expenses including wages & salaries, Interest on Loans, Mortgage expenses &
stamp duty, bankers charges, insurance, etc., Pre-investment, Pre-contract & Post
contract fee, etc.
The total preliminary and pre-operative expenses for the proposed project have
been estimated at Rs. 590 lakh.
7.6 Contingencies
The contingencies have been worked out at 2% of the non-firm items of site
development, buildings, plant & machinery and miscellaneous fixed assets,
preoperative expenses. They, accumulate to Rs. 244 lakh.
7.7 Margin Money for Working Capital
The margin money on working capital is calculated @ 25% of the working capital
requirement which works out to Rs.290 lakh.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 28
CHAPTER – 8
FINANCIAL VIABILITY
8.1 Basis & Assumptions
8.1.1 The entire financial analysis of the project has been worked out on a
computer, using specific project feasibility software developed for the
purpose.
Annexures-1 to 18 gives the basis and details of various items of project,
along with item wise costs. Schedules-A to I represent results of the
analysis in terms of cost of project and means of finance (Schedule-A),
project profitability and cost of production (Schedule-B), Debt Service
Coverage Ratio (DSCR) (Schedule-C), Cash Flow Statements (Schedule
- D), Balance Sheet Forecasts (Schedule -E), etc.
8.1.2 Each item of capital cost is based on the estimated erected costs for
various equipment contractors. Annexures-1 to 6 respectively give land
and site development costs, civil works, erected costs of indigenous
equipment, erected costs of miscellaneous fixed assets and preliminary
and pre-operative expenses. While calculating the cost of site development
and civil works, the prevailing rates for labour, material, etc have been
assumed.
8.1.3 The contingency provision has been made on all non-firm items of the
project cost and has been considered at 2% for each component of the
project including preoperative expenses (Refer annexure 6).
8.1.4 The installed capacities and capacity utilisation levels for fuel ethanol
plant and respective annual productions have been shown in the following
table:
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 29
Item Year
1 2 3 4 5
Installed Capacity-KLPD 80 80 80 80 80
Number of shift/day 3 3 3 3 3
No. of days 180 270 270 270 270
No. of hrs. 24 24 24 24 24 Annual Installed Capacity 14400 21600 21600 21600 21600
Capacity utilization, % 80 85 90 95 95
Total Spirit, KL 11520 18360 19440 20520 20520
Net Production Fuel Ethanol,
KL
10944 17442 18468 19494 19494
8.1.5 Project income is based on the quantities of fuel ethanol sold.
In view of the rate agreed by petroleum companies for sale of fuel ethanol
has been assumed at Rs. 45000 / KL for the all the years. Refer Annexure
– 8 for estimated annual production and sales value for ethanol.
8.1.6 Refer Annexure 9 for particulars of indigenous raw materials explained
above. The requirement of molasses has been worked out based on the
recovery of ethanol @ 235 Ltr/MT of molasses. The own/B-heavy
molasses price has been considered at Rs.4000/MT and the outside
molasses purchase price considered at Rs.4200/MT.
8.1.7 The consumables and chemicals for fuel ethanol have been considered as
per the norms of industry & calculated in Annexure-10.
8.1.8 Annexures 11 gives the details of requirement of utilities & their costs.
8.1.9 The requirement of direct manpower has been estimated based on the
equipment / facilities to be operated in each section of the project. Total
manpower requirement has been estimated at 81 for fuel ethanol plant.
Every year 10% increment and 10% benefits have been provided for
(Refer Annexure-12).
8.1.10 Repairs and maintenance costs have been estimated at 1.5% on civil works
& miscellaneous fixed assets and plant equipment (Refer Annexure-13).
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 30
8.1.11 Other manufacturing expenses include rent, rates and taxes, electricity
charges, insurance charges for fixed assets and stocks, miscellaneous
expenses and contingencies (Refer Annexure-14).
8.1.12 Administrative overheads include administrative staff salary and expenses
like printing and stationery, postage and telephone, traveling and
conveyance, Excise fees and other expenses (Annexure 15).
8.1.13 The repayments of interests and term loans for each component of the
project have been considered based on the means of finance and the terms
for debts for each. The term loans for fuel ethanol plant will be at 13.5 %
rate, payable within 28 quarterly instalment with one & half year as
moratorium and SDF loan will be at 7% rate payable in 8 equal half yearly
installments with one year as moratorium (Refer Annexure 16).
8.1.14 Annexure-17 gives income tax calculation as per relevant tax laws
applicable.
8.1.15 Depreciation has been calculated by following methods and rates (Refer
Annexure-18 for details).
Item of capital cost WDV SLM
Site development and civil structure 10.00 3.34
Plant & Machinery 15.00 5.28
Miscellaneous assets 15.00 5.28
8.1.16 Preliminary expenses have been written off equally in 5 years.
8.1.17Based on above assumptions, the detailed project financial analysis for a
period of 10 years have been worked out and are presented in Schedules-A
to J.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 31
8.1.18 following items of costs have been classified into variable and fixed
components for arriving at the break-even point.
Fixed Variable
Utilities 20 80
Direct labour 90 10
Other mfg expenses 80 20
Admin.overheads 80 20
8.2 Cost Summary
Based on the capital cost break up worked out in Chapter 7, the project cost
summary for the entire integrated project is given in the following table (Also
refer Schedule A):
Particulars Amount,
Rs. Lakh
Land and Site Development 150
Buildings 2346
Indigenous Plant and Machinery 9000
Miscellaneous Fixed Assets 80
Prelim. & Preoperative Expenses 590
Contingencies 244
Working capital margin 290
Total 12700
8.3 Means of Finance
The proposed means of finance is indicated below. (Refer Schedule – A).
Particulars
Amount,
Rs. Lakh
PSAPPL Equity / Internal accruals (27%) 3429
SDF Quasi Equity (35%) 4445
Bank / F. I. Loan (38%) 4826
Total 12700
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 32
8.4 Financial Viability Indicators
8.4.1 Schedules A to J establish results of the project financial analysis, in terms
of total project cost and means of finance, project profitability, debt
service coverage ratio, cash flow statement, balance sheet forecast,
analytical and comparative ratio, breakeven analysis, sensitivity analysis,
internal rate of return, payback period, etc. supported by Annexures 1-19.
8.4.2 The above ratios establish good financial viability of the project for this
funding pattern and project income from sale of fuel ethanol, as indicated.
8.4.3 The financial viability ratios have been tabulated as below:
(Rs.Lakh) Operating Years
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1. EBIT to Capital Employed 15.98 28.85 28.30 25.32 24.78 22.65 20.82 19.23 17.31 15.79
2. Return on Investment
i) PBT to Capital Employed 5.71 17.90 18.76 16.98 17.65 16.99 16.08 15.29 14.01 12.78
ii) PAT to Capital Employed 6.32 14.88 14.43 12.81 12.98 12.24 11.40 10.69 9.69 8.75
iii) PBT to Net Worth 9.40 27.11 26.35 22.43 21.95 19.75 17.73 16.14 14.71 13.36
iv) PAT to Net Worth 10.42 22.53 20.26 16.92 16.14 14.23 12.57 11.29 10.17 9.15
3. PBT to Sales 17.48 31.30 32.72 30.62 32.34 33.93 34.84 35.75 36.26 36.26
4. Raw Materials Cost to Sales 40.04 40.63 40.63 40.63 40.63 40.63 40.63 40.63 40.63 40.63
5. Operating Ratio 51.04 49.56 50.64 54.34 54.60 54.75 54.90 55.06 55.21 55.21
6. Interest Coverage Ratio 2.62 4.17 5.02 5.61 7.36 10.18 13.33 19.35 0.00 0.00
7. Fixed Assets Turnover Ratio 0.40 0.77 0.84 0.88 0.93 1.00 1.07 1.16 1.26 1.38
8. Debt Equity Ratio 0.55 0.42 0.31 0.23 0.16 0.09 0.04 0.00 0.00 0.00
9. Ratio of N/W + L/T
Liabilities to Fixed Assets 1.15 1.25 1.37 1.47 1.60 1.87 2.19 2.56 3.10 3.74
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 33
CHAPTER – 9
SOCIO-ECONOMIC
AND ENVIRONMENTAL BENEFITS
9.1 The proposed project of PSAPPL will be a landmark achievement in Beed District
of Maharashtra State. It will truly become a role model of zero pollution industry
by utilizing the waste effluent in slop fired boiler in the most efficient manner for
eco-friendly products like fuel ethanol. 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
State of Maharashtra.
Establishment of the latest and most efficient technologies adopted for fuel
ethanol manufacture, will also help the Indian sugar industry and equipment
manufacturers to grow leaps and bounds, at the national and the international
levels.
9.2 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
mofussil areas, better environment and higher returns for the cane crop due to
higher yield and cane price.
9.3 At the national and the State levels, the benefits include reduced emissions,
increased tax revenues and reduction in the transportation costs.
9.4 At the project and promoter levels, the captioned project offers excellent
opportunities for manufacture of fuel ethanol and improved returns from trade of
emission reductions from the up coming international emissions trade market,
under the Kyoto Protocol.
9.5 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 socio-
economic and environmental benefits at the local, the State, the Regional and the
National levels.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 34
CHAPTER – 10
CONCLUSIONS & RECOMMENDATIONS
10.1 SWOT Analysis
Strengths (S):
- Availability of land in existing sugar factory premises
- Excellent irrigation facilities with ensured cane cultivation and availability on
a long term basis
- Availability of basic infrastructure
- Favorable policy regime for Fuel ethanol at the Central Govt. and in
Maharashtra State, with defined policies regarding sale of fuel ethanol
- Commitment and vision of the promoters, with forward integration planned
right from beginning
- Professional and business like approach of the promoters, with meticulous
planning for speedy and successful implementation and operation
- Good financial viability and technical feasibility of the project at the estimated
project capital cost and prevailing selling prices of fuel ethanol, as well as
landed prices of various raw materials and inputs
- Deployment of latest technologies and equipment
- A very high order of socio-economic and environmental value to the local
populace, Maharashtra State and the country.
Weaknesses (W):
- Complexities and higher investment levels of the project. Employment of
experienced and professional teams and consultants, as well as project and
equity partners, directors on board will reduce this weakness.
- Changes in the Govt. policies related to ethanol
- Satisfying the statutory agencies in execution & operating the plant.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 35
Opportunities (O):
- Decrease dependence on sugar margins
- GOI’s 5% mandatory ethanol blending since December 2012, approval to
market based pricing & increased blending ratio from 5% to 10% recently
and, thus, having a two to three fold increase in requirement.
- The unit has flexibility with minimum investment of entering into alternative
products like ENA, IMFL & CS
- Implementation of the recommendations of Rangarajan Committee by GOI &
freeing up the sugar and ethanol market
Threats (T):
- Cyclic or climatic changes leading to low cane crushing and hence resulting in
the under capacity utilization. Alternate cane varieties shall be incorporated at
later date depending upon market conditions.
- Over dependence of in house raw materials for revenue generation.
Alternative, third party vendors have been identified for molasses
requirement.
- Over dependence on marketing of the product to single agency (OMCs),
which is influenced by the policy matters, to be decided by the GOI.
However, GOI is committed to fuel ethanol projects and are to increase the
blend ratio.
10.2 Risk Factors
Risk Factors Remarks
Industry Risk
The Industry is cyclical and highly regulated. The price of
free sale sugar is directly/indirectly controlled by the govt.
Therefore, the company has been making its operations
integrated, comprising of sugar, cogeneration and ethanol
plant to protect its margins and profitability and avert
cyclicality.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 36
Implementation
Risk
PSAPPL has experienced people in its management team.
Keeping in view overall good track record, it is felt that
PSAPPL has the competence for timely implementation of
project as per the schedule. The ethanol project shall be
implemented on turnkey basis. The ethanol project being
implemented on turnkey basis, will reasonably assure
completion of the project within the envisaged cost.
However, any increase in cost of plant & machinery shall
be met by the internal accruals.
Operating Risk Though the company is new to the production and
marketing of ethanol, it is in the business of manufacturing
and marketing of sugar with proposed capacity of 5000
TCD & cogen 35 MW. Moreover, the ethanol project is
being implemented on a turnkey basis and will be backed
by suitable clauses in terms of warranty and guarantee. As
such it is felt that the operating risks would be mitigated to
a considerable extent.
Though the availability of adequate quantity of molasses is
also dependent on the supplies from neighboring units to
meet the shortfall, the company has identified nearby sugar
mills from where molasses can be sourced.
Credit Risk Average DSCR of the ethanol plant project is estimated to
be 2.38, which is satisfactory. PSAPPL has been regular in
meeting its commitments to FIs/Banks and SDF.
Financial Risk The company is comfortably placed to infuse its equity
contribution in the project and is awaiting sanction of term
loan from banks. As such, no problem is envisaged
Raw Material Risk PSAPPL has announced a reasonable remunerative price
in line with the market trend and neighboring sugar mills.
Also, it is providing services to educate farmers about the
best practices in sugarcane cultivation for improvements in
the yield. Company is proposes operating a 5000 TCD
Sugar plant & 35 MW cogen power plant in the same
premises as proposed for the ethanol plant. The molasses
required for the ethanol plant shall be readily available
from the sugar plant. The Neighboring sugar mills has
already shown willingness to supply the molasses for
meeting the shortfall.
Detailed Project Report on 80 KLPD Ethanol Plant of PSAPPL at Dist. Beed 37
Market Risk/ off
take risk/ payment
risk
The Govt. of India has allowed mixing 5% ethanol in
petrol and has increased of ethanol percentage to 10%,
recently. Since there is need for huge investment to set up
additional required capacity of 96 million litres of ethanol
by 2017, PSAPPL is not expected to face any problem in
selling the ethanol from proposed project.
10.3 Key Management Features
Appointment of Project Team, required experts and consultants, as well as top
level staff - right from the beginning
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 fuel ethanol plant.
Effective project management for timely execution
Cane development in the command area
10.4 Conclusions & Recommendations
The captioned fuel ethanol project is technically feasible and commercially
viable. The project is recommended to financial institutions for financing term
and working capital loans.
The forward linkages of this project / as well as socio-economic and environment
benefits to the local population make this a win-win project to all the
stakeholders.