RAN IPUR SUGAR MILLS (PVT LTD

NEPRA_RS!v1/06-0014/2013 June 27, 2013

The Registrar, National Electric Power Regulatory Authority, Islamic Republic of Pakistan, 2"4 Floor, OPF Building, G-5/2 shahrah-e-Jamhurriat, Islamabad.

Subject: Request For Grant Of Generation License Unto20 Mw For Ranipur SuEar Mills (Pvt) Ltd Ranipur District Khairnur Mirus.

Dear. Sir, Reference to our previous application no NEPRA_RSM/05-003/2013. dated May 7th.

2013, that we hereby resubmit our application for grant of up to 20 MW Generation license

as per NEPRA licensing (Application Modification Procedure) Regulation 1993, 1999.

It is therefore once again requested you to please consider our application as per NEPR.4 rule accordingly and oblige.

Yours sincerely, for Ranipur Sugar Mills (Pvt.) L

CC To:- The Chief Ex utive o leer ukktir.

Enclosed:

(a) Application for grant of I 0-20MW Generation license. (b) Original Demand Draft No.3698196 of Rs. 182,384/-.. (c)Letter of intent (Lcii) from SEPCO. (d) Boaid resolution. (e) Article of Association & MemorandUm. (f) Certificate of InCorporation. (g) Location Map. (h) Technology. size of plant and No of :units. (i) Plant characteristics: (j) Cooling water sources. (k) Environmental aspe9t. (I) Interconnection with National Grid, Distance, name of Grid. (m) Single line Diagram. (n) Infrastructure Road, Rail. (o) Plant layout. (p) Detail of generation facility / Power Plant. (q) Fuel Detail. (r) Schedule-II

KARACHI OFFICE : Ranipur House.: 23-F/1, Block-6, P. E. C. H. S. Karachi. Ph: 4314854-55-56, Fox: 4314857 E-mail: ranipur@cyber.net.pk

ranipursugar@yahoo.co.uk

FACTORY : Ronipur, District Khoirpur, Sindh (Pakistan) Ph. : (0243) 630206-7 Fox : (0243) 630570

1

Yours Truly, Ranipur Sugar Mills (Pvt.) Ltd.

0 WRAC I OFFICE : ligniA House: 23-F/1, Block-6, •1E. c H. S. Karachi.

4854-55-56, Fax: 4314857 E-mail: ranipur@cyber.net.pk

ranipursugar@yahoo.co.uk

RANIPUR SUGAR MILLS (PVT) LTD

NEPRA RSM/06-009/2013 June 25,2013

The Chairman, National Electric Power Regulatory Authority, Islamic Republic of Pakistan, 2" Floor, OH; Building, G-5/2 Islamabad.

Subject: APPLICATION FOR REQUEST THE GRANT OF 10 TO 20 MW, GENERATION LICENSE FOR RANIPUR SUGAR MILLS (PVT) LTD, (DISTRICT KHAIRPUR MIRUS) SINDH.

Reference: Your office letter No: NEPRAMLAG-30MISC/4647, dated: May 15, 2013.

Reference: Our Application No:.NEPRA RSM/05-003/2013, dated: May 07, 2013.

Dear Sir,

I Abdul Wajid Arain , Chairman M/S Ranipur Sugar Mills (Pvt) Ltd, by the virtue of Board Resolution

dated 20th May,2013, hereby apply to the National Electric Power Regulatory Authority for the grant of

10-20 MW a generation license to the Ranipur Sugar Mills (Pvt) Ltd, located at Ranipur district

Khairpur Mirus_ Sindh, Pursuant to Section of the Regulation for generation of Electric Power Act 1997.

I. certify that the documents in support attached with this application and submitted in conformity with

the provision of the National Electric Power Regulatory Authority undertake to abide by the terms and

provisions of the above said regulations. I further undertake and confirm that the information provided in

the attached documents in support is true and correct to the best of m knowledge and beli::7-I1

A bank draft No.3698196 dated: 07-May-2013 in the sum of Rs.182384/- (Rupees One Hundred Eights

Two Thousand Three Hundred and Eighty Four Only) (attached original) being the non-refundable

license application fee calculated in accordance with schedule to the National Electric Power Regulatory

Authority (NEPRA) Licensing (Application and Modification Procedure) Regulation 19993 for included

supporting documents and a bank (Application and Modification Procedure) Regulations, 1999.

Thanking you,

FACTORY : Ranipur, District Khairpur, Sindh (Pakistan) Ph. : (0243) 630206-7 Fax : (0243) 630570

CERTIFIED TRUE COPY

itantpur Sosa:. t j Ltd.

Sccr-

RAN I PUR SUGAR MILLS (PVT) LTD

RESOLUTION PASSED BY THE BOARD OF DIRECTORS OF RANIPUR SUGAR MILLS (PRIVATE) LIMITED IN

THE MEETING HELD ON 20-MAY-2013 AT THE REGISTERED OFFICE OF THE COMPANY

1. Resolved that the application to filed for Generation with National Electric Power Regulatory Authority.

Further Resolved that Mr. Abdul Wajid Arain, Director of the Company is hereby-authorized to sign singly the necessary documents / papers, pay the filing fees, appear before the authority as required, to do and cause to be done all acts, deed and things with may be necessary to give effect of this resolution and to do all acts • necessary for completion and processing of the application for Generation license.

3. Further Resolved Mr. Abdul Wajid, Director of the Company are hereby also authorized to delegate power to Mr. Mursalin Rana that to sign, receive and follow up the all corresponding with NEPRA i.r.o. Generation License application and its related documents etc.

4. Further resolved that a cetified true copy of the resolution be submitted to National Electric Power Regulatory Authority under signature of the Company Secretary.

KARACHI OFFICE :

Ranipur House: 23-F/1, Block-6, P. E. C. H. S. Karachi. Ph: 4314854-55-56, Fax: 4314857 E-mail: ranipur@cybernet.pk

ranipursugar@yahoo.co.uk

FACTORY : Ranipur, District Khairpur, Sindh (Pakistan) Ph. : (0243) 630206-7 Fax : (0243) 630570

PCPK—Litho/2035/92-93/DCS&F-27-2-93-13,500 Loos*.

(Under section 32 of the Companies Ordinance, 1984 ( XL VII of 1984)

RANIPUR SUGAR MILLS (PRIVATE) LIMITED I hereby certify that

is this day incorporated under the Companies Ordinance, 1984

(XLVII of 1984) and that the company is limited by SHARES AS A

Fee Rs. 267,680/.

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Joint Regist D pai ies

\N.* PA‘O

MEMORANDUM

AND

ARTICLES OF ASSOCIATION

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THE COMPANIES ORDINANCE, 1984 C.

(A PRIVATE COMPANY LIMITED BY SHARES)

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THE COMPANIES ORDINANCE, 1984

(COMPANY LIMITED SHARES)

MEMORANDUM OF ASSOCIATION

OF

RANIPUR SUGAR MILLS (PRIVATE) LIMITED

I. The name of Company is Ranipur Sugar Mills (Private) Limited.

II. The registered office of the Company will be situated in the province Sindh,

Pakistan.

III. The objects for which the Company is established are :-

L To acquire establish or set up and to carry on in Pakistan or elsewhere all or any of the business of sugar manufacturers and dealers in all their respective branches, to manufacture, refine, produce, prepare, import, export, purchase, sell and generally to deal in sugar, sugar beet, sugar cane, gur, molasses, syrups, sugar candy, jaggery, melada and all other products or by-products thereof and other vegetable, fruit, food, corn or any other material from which sugar and allied products could be manufactured, to acquire, construct and operate sugar and other refineries, buildings, constructions, mills, factories and other works, to manufacture confectionery, tinned, canned, bottled and preserved fruits; vegetables, glucose, essences and food products, to plant, cultivate, produce ethyl, industrial alcohol, acetones, carbon dioxide, hydrogen, potash, cane-wax, fertilizer and other food products generally and to transact such work or business as may be proper or necessary in connection with the above objects or any of them.

To advance moneys to growers, farmers, landowners and contractors and provide them with seeds, manure, tools, machinery and other facilities, on such terms and conditions as the Company may deem fit and to consume all or any such grown, owned or acquired sugarcane, sugar beet, fruit, vegetable or corn, in Company's own undertakings or to dispose of, supply, export or sell all or any of these commodities to any dealers, distributors, manufacturers, exporters and others on such terms and conditions, as the Company may deem proper, and to grow, plant, cultivate or otherwise acquire sugarcane, sugar beet, fruits, vegetables and corns of any variety or varieties on Company's own lands or on lands of others, on such terms and conditions as the Company may deem fit from time to time.

3. To carry on the business of manufacturers of and dealers in all kinds and classes of pulp including sugarcane bagasse pulp, sulphite, wood pulp, mechanical pulp, soda pulp and paper of all kinds including transport . writing, prin lazed, absorbent, news printing, wrapping, tissue, blotting, filter, ban an xi -13i 'i- ff or colored, cloth lined, azurelaid, cream laid, grease or water • 9pf„ hat* ..,,m ade p .chment, drawing craft, carbon, envelope, cardboard, boxboard all' eilikig paptad akkind of articles

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4.

5.

_ ,- 0'.4 To carry on the business of breeders and qyrs of *tty.kld dealers in dairy farm and garden produce of a 'IcIfyls.

‘.1■ . ,1,34 4t 1 To acquire by purchase or otherwise ranches and s

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of Or ucers of, and

4,

o carry on the trades

•

•

manufacture or treatment of pulp and paper. I 0 c 4/

:, k

in the manufacture of which pulp, paper 6oa is used b d maters s used in the

or business of cattle rearers and sheep farmers, fellmongering, tanning, and ware housing generally, preserved meat manufacturers, dealers in hides, fat, tallow, grease,

3 offal and other animal products.

13. To acquire by conces io

or country, in Pakist n or

and granted by Goveitinfent

money as may be deemed

development thereof.

lease, licence or otherwise any tract

such rights as may be agreed upon

thereof, and to expand such sums of

le in the exploration, survey and

6. To carry on business as timber merchants, saw mill proprietors, and timber growers and

to buy, sell, grow. prepare for market, export, import, and deal in timber and wood of

all kinds, to buy, sell, clear, plant and work timber estates and to manufacture, sell, buy

and deal in articles of all kinds in the manufacture of which timber or wood is used.

7. To cultivate sugar cane, beet root, tea, coffee, cinchona, rubber, coconuts, timber,

tobacco, spices and other produce, to carry on and work the business of planters,

cultivators, winnowers, buyers, and sellers of every kind of vegetable, mineral, or other

produce of the soil, to grow, prepare, manufacture and render marketable any such

produce, and to buy, sell, import, export, dispose off and deal in any such produce,

either in its prepared, manufactured or raw state and either by wholesale or retail and to

purchase. take on lease or otherwise acquire, hold and work, any lands or plantations

suitable for any of such purposes and any concessions, rights, powers, and privileges

relating thereto.

8. To develop the resources of or turn to account any lands and any rights over to or

connected with land belonging to or in which the Company is interested in particular by

clearing, draining, fencing, planting, cultivating, building, improving, farming,

irrigating, grazing, and by promoting, immigration and emigration and the

establishment of village settlements.

9. To carry on the business in all its branches, in Pakistan or in any part of the world, as

brokers, commission agents, buyers, sellers and dealers of sugar of any variety or

varieties sugar beet, fruit, vegetable, corn or any produce or form of such commodities

or of advancing of money upon the security in respect of the same or upon or against

bills of lading, dock warrants or other documents of title representing the same.

10. To take on lease, hire, purchase or acquire by licence or otherwise, any lands,

plantations, rights, over or connected with lands, buildings, mills, factories, plant,

machinery, apparatus, works, lorries, wagons, carts, live stock, stock in trade, rights,

privileges, and moveable or immoveable property of any description, which may be

deemed convenient or necessary for any business which the Company is authorized to

carry on.

11. To carry on all or any of the business, usually carried on by land companies or farmers;

and to cultivate, improve or develop any lands and properties, whether belonging to the

Company or not, and to develop the resources thereof by planting, manuring, farming,

letting or otherwise and to advance money to other persons for any of the purposes

aforesaid.

12. To purchase, erect, construct, work, equip, maintain, improve, or alter, or assist in the

purchase, erection, construction working, equipment, maintenance, improvement or

alteration of any mills, factories, works, plants, machinery, scrapers, cutters, crushers,

pressers, and engines, buildings, offices, ware houses, dwelling houses, labor lines,

places of worship, schools, hospitals, dispensaries, canteens, shops, clubs, recreation

rooms and grounds, gardens, farms, water courses, tanks, well, reservoirs, aqueducts,

canals, telegraphs, roads, railw ways, sidings, bridges skid piers, slips, grid

irons, lorries; cars, wago ter works and conveniences which the

Company may think dir q)'r indirectly i. ive to any of its objects.

14. To let out on hire all or any of the property of the Company whether moveable or immoveable including all and every description of apparatus or appliances and to hold. use. cultivate. work, manage. improve, carry on and develop the undertakings. land. immoveable property and assets of any kind of the Company or any part thereof.

15. To pay for properties, rights or privileges acquired by the Company either in shares of the Company.

16. To sell, improve, manage, work, develop, lease, mortgage, abandon or otherwise deal with all or any of the property, rights and concessions of the Company.

17. To carry on all or any of the business of merchants and growers. malt factors, corn merchants, wine and spirit merchants and importers. distillers. coopers and bottlers. bottle makers, bottle stopper makers, potters. manufacturers of and dealers in aerated and mineral waters, and other drinks, licensed victuallers. hotel keepers, beer house keepers, restaurant keepers, lodging house keepers. ice manufacturers and merchants, tobacconists, farmers, dairymen. yeast dealers. grain sellers and driers. timber merchants, brick makers. fining manufacturers and isinglass merchants.

18 To borrow money or secure the payment of money in such manner as the Company shall think tit and in particular by mortgage or by the issue of any shares, stocks. bonds. debentures, obligations or any other securities charged or based upon the undertakings of the Company, uncalled capital of the Company or any part of its property both present and future including the rights of the Company or without any such security and upon such terms as to priority or otherwise and generally to borrow money in such manner as the Company shall think tit.

19. To issue debentures, part or whole of which could be converted into shares.

20. To mortgage and charge the undertaking and all or any of the real and personal property and assets, present or future, and all or any of the uncalled capital for the time being of the Company. and to issue at par or at a premium of discount, and for such consideration and with and subject to such rights, powers. privileges and conditions as may be thought fit debentures or debenture stock either permanent or redeemable or repayable, and collaterally or further to secure any securities of the Company by a trust or other assurance.

21. To act as trustees of any deeds constituting or securing any debentures, debenture stock, or other securities or obligations and to undertake and execute any other trust and also to undertake the office of executor. administrator or registrar or to become the agents of any business and to keep for any company, Government authority or body, any register relating to any stocks, funds, shares, or securities or to undertake any duties in relation to the registration of transfers, the issue of certificates or otherwise.

To purchase, take on lease, or in exchange or otherwise acquire, erect, maintain, equip. construct, reconstruct, repair, renovate, or adopt moveable or immoveable property including buildings, residential bungalows, labor lines, quarters, offices, chawls, places of worship, schools, hospitals, dispensaries, canteens, recreation rooms. clubs, ware houses. godowns. structures, erections, workshops, mills. factories, foundries, or places for manufacturing plants. machinery, spindles, looms, presses. engine tools, electric light, accessories, implements, appliances, apparatus. articles s found necessary or convenient for the purpose of the Company wit*. the employees and also to extend the business of the Compa acq getting transferred, adding or altering, enlarging, all or e bu jfings, eft factories, premises, places being the property of the Cot any ofvj lands for the time being in the prOperty or in posses of the expanding from time to time such sum or sums of mo

0)4as ma MO' .

expedient for improving, adding or altering,• repairing an vflivntainit s, structures, machinery, plants, and property for the time ben e q„0 to sell or mortgage or let out on hire all or any portion of the s 'tought desirable.

77.

23. To sell, exchange, mortgage, let on lease royalty or tribute, grant licenses, easements, options, and other rights over and in any other manner deal with or dispose of the undertaking, property, assets, rights and effects of the Company or any part thereof for such considerations as the Company may think fit, and in particular for stock, shares, whether fully or partly paid up, debentures or securities of any other company, and if thought fit to distribute the same among the share-holders of this Company.

24. To manage. let mortgage, sell, underlet, or otherwise turn to account, dispose of or deal with all or any part of the real or immoveable and personal or moveable property of the Company, whenever and however acquired.

25. To carry on the business of stationers, lithographers and publishers.

26. To carry on the business of paper makers, and printing and other ink manufacturers, in all their branches.

27. To carry on the business of manufacturers of and dealers in chemicals of all kinds, paints, varnishes, printing inks and all other things which can be conveniently manufactured or dealt in by persons carrying on any of the Company's business and either wholesale or retail, and either as principals or as agents.

28. To carry on the business as pharmaceutical manufacturing and industrial chemists and druggists and manufacturers of and dealers in all kinds of boxes and cases wholly of cardboard, metal or otherwise and printers, colour printers, publishers and stationers.

29. To carry on the business of acquiring, owning, buying, selling, leasing, mortgaging. exchanging, manufacturing, distributing, marketing or otherwise dealing in bamboos, grasses, bagasse or other vegetation that grows or is likely to grow.

30. To carry on the business of planters, growers, and cultivators of timber, grasses and other produce of the soil likely to be used or used in the manufacture of paper. mill board and to improve, protect against fire, wind, and other elements of nature, and to treat, prepare render marketable, buy, sell or otherwise dispose of such produce.

31. To manufacture drugs and chemicals necessary or required for any of the purposes of the Company.

32. To carry on the business of a water works company in all its branches, to sink well and shafts and to make, build, construct, lay down, and maintain reservoirs, water-work cisterns, culverts, filter beds, main and other pipes and appliances, and to execute and do all other works and things necessary or convenient for obtaining, storing, selling, delivering, measuring and distributing water or otherwise for the purpose of the Company.

33. To carry on the business of an electric supply company in all its branches and in particular to construct, lay down, establish, fix and carry out all necessary cables, wires, lines, accumulators, lamps, and works and to generate, accumulate, distribute and supply electricity and light to cities, towns, streets, docks, markets, theatres, buildings and places both public and private with the prior approval of competent authority.

34. To carry on the business of electricians, mechanical engineqs, suppliers of electricity for the purpose of light, heat, motive power or otherwise and manufacturers of and dealers in all apparatus and things required for or capable of being used in connection with the generation, distribution, supply, accumulation and employment of electricity.

35. To enter into any agreements with the government of Pakistan or any local governments or any other Governfnent or State or with any authorities, public, municipal, local, railway or otherw or with any other person that may seem conducive to the Company's objects o 14,1 them ampo obtain from any such Government, State, authority or persons an • . 'Wreges and concessions which the Company may think desirable to obtain and to carry out, exercise, and comply with

any such arrangements, rights, privileges and concessions and dispose of or turn to account the same.

36. To obtain and or hold the office of and act as agents, brokers, contractors, executors / administrators of any trading of manufacturing company, corporation, board, committee, or concern whether owned, patronized or controlled by any Government, local authority or other person or persons.

37. To carry on business as agents, selling agents, buying agents, dealers, brokers, commission agents, indentors, indenting agents, canvassers, advertisers, stockists, and distributors for any persons, firms, and companies (including without prejudice to the said generality and in particular for importers, exporters, buyers, sellers, manufacturers, merchants, tradesmen, insurers, financiers, builders, property owners and others) and generally to undertake and carry out agencies and agency work of any kind whatsoever and transact all manner of agency, booking, commission, canvassing, distributing and advertising business.

38. To establish and conduct agencies and branches in any part of the world for the purpose of the Company.

39. To carry on the business of warehousemen and wharfinger.

40. To amalgamate with or accept stock, or shares. in or, bonds, debentures or other securities of any other company in payment or part payment of any service rendered or for any sale made to or debt owing from any such Company.

41. To establish agencies or branches for the purchase and sale of goods of all description in Pakistan, Indian Union, United Kingdom, United States of America or else where and to undertake the management, supervision or control of the business or operations of any company or companies having objects altogether or in part similar to those of this Company.

42. To transact and carry on all kinds of business and to act as Directors, Supervisor in respect of any company, concern or corporation, and for that purpose to appoint and remunerate any Directors, Accountants or other Experts or Agents.

43. To carry on the business of advertising and publicity agents, advertisement contractors and designers of advertisements, printers, engravers, publishers, books, and print sellers, book binders and / or journalists, in all their branches.

44. To adopt such means of making known the products of the Company as may seem expedient and in particular by advertising in the press, by circulars, by purchase and exhibition of works of art or interest by publication of books and periodicals, by granting prizes, rewards and donations.

45. To apply for, purchase or by any other means acquire and protect, prolong and renew, whether in Pakistan or elsewhere any trade marks, patents, rights, brevets d'invention, licenses, protections, concessions and the like conferring any exclusive or non-exclusive or limited right to use or any secret or other information as to any invention which may seem capable of being used for any of the purposes of the Company or the acquisition of which may seem calculated, directly or indirectly, to benefit the Company and to use, exercise, develop or grant licenses in respect of or otherwise turn to account the property, rights or information so acquired.

concessions, s, copy rights or

hand to 'work or

46. To apply for and take out, purchase or otherwise acquire any mono licenses or privileges, patents, patent right or inventions, trade m secrets processes, which may be useful for the Company's obj dispose of or grant licenses to use the same.

47. To open any current, overdraft, cash credit account or fixed account with any bankers, local or foreign including the agents of the Company and to pay money into and draw money from any such account.

48. To make, draw, accept, endorse, discount, execute or negotiate and issue cheques, Government of Pakistan and other promissory notes, hundies, bills of exchange, bills of lading, warrants, debentures, and other negotiable or transferable instruments or securities, concerning this Company.

49. To invest and deal with the Surplus moneys of the Company in any investments moveable or immoveable in such manner as may from time to time seem expedient and be determined, but not to purchase shares of this Company.

50. To invest or deposit the surplus moneys of the Company, not immediately required, upon such securities (other than shares or stock in the Company) or in such manner as may, from time to time, be decided.

51. To advance any such sum or sums of money upon or in respect of the purchase of raw materials or any of the articles and things herein before mentioned and any of the articles and things necessary or useful for the purpose of the Company and also to advance moneys on railway receipt, and other mercantile investments upon such terms and conditions as the Directors may deem expedient.

52. To guarantee the performance of contracts by members of or persons having dealings with the Company.

53. To borrow sums of money in such manner as the Company shall think fit, and in particular by the issue of debentures or debenture stock, perpetual or otherwise, charged upon or any of the Company's property (both present and future) including its uncalled capital, if any, and to apply the same or any part thereof for all or any of the purposes of the Company.

54. To pay advance money or give credit to such persons, firms or companies and on such terms as may seem expedient and in particular to customers and others having dealings with the Company, and to give guarantees or become security for any such persons, firms or company.

55. To subscribe or guarantee money for any national, charitable, religious, benevolent, political, public, general or useful object or for any exhibition.

56. To purchase, charter, hire, build or otherwise acquire steam or other ships or vessels, steam launches, flats, barges, and cargo boats, with all equipments and furniture and to employ the same in conveyance of passengers, mails troops, munitions of war, meats live stock, grain and other agricultural produce and treasure, and also goods and merchandise of any description and species by sea and in land waters including rivers and tributaries and also to and from any ports or places whatsoever, whether inland, seaboard, Pakistani or foreign, to take vessels, flats, barges and other craft in tow of its vessels as the Company may from time to time determine and to acquire postal subsidies, and enter into mail or other contracts and generally to carry on business of carriers by sea.

57. To undertake and carry out any operation or transactions whatsoever (except the issuing of policies of assurance of human life) which may lawfully be undertaken and carried out and which the Company may think it expedient to undertake and carry out.

58. To carry on the business of manufacturers -of and dealers in 'c emical products of any nature and kind whatsoever and as wholesale and retail hemists and druggists, analytical chemists, drysalters, oil and colour men, i yorters, exporters and manufacturers of and dealers in heavy chemicals alkalis, acids, drugs, tannins, essences, pharmaceuticals, photographical sizing, medicinal chemical, industrial and other preparations and articles of any natureand k whots er, mineral and other waters,

cements, oils, paints, pigments and varnishes, compounds, drugs, dyestuffs, organic or mineral intermediates, paint and colour grinders, makers of and dealers in proprietary articles of all kinds, and of electrical, chemical, photographical, surgical and scientific apparatus and materials.

59. To carry on the business of manufacturers and producers of fats, fertilizers, manures, dips, sprays, vermifuges, fungicides, medicines and remedies of all kinds for agriculture, fruit growing or other purposes or as remedies for men or animals and whether produced from vegetable or animal matter or by any chemical process.

60. To acquire, manufacture, produce, use, sell and supply gas and electricity for lighting, heating or power purposes and to deal with, manufacture and render saleable all residual products obtained in the manufacture of gas.

61. To construct, purchase, lease, or otherwise acquire tramways and light railways in mill and in the vicinity thereof.

62. To equip and maintain and work by electricity, steam, horse, or other mechanical power all tramways and railways belonging to the Company, or in which the Company may be interested.

63. To carry on the business of tramways, railways, omnibus, and van, proprietors and carriers of passengers and goods, and of manufacturers of and dealers in tramways, carriages, trucks, locomotives, accumulators, dynamos, and other chattels and effects and conveniences required for making, maintaining, equipping and working tramways.

64. To establish, provide, maintain, and conduct, or otherwise subsidize research laboratories and experimental workshops for scientific and technical research and experiments and undertake and carry on all scientific and technical researches, experiments, and test of all kinds to promote studies and research both scientific and technical investigation and invention by providing, subsidizing or assisting laboratories, workshop, libraries, lectures, meeting and conferences and by providing the remuneration of scientific or technical professors or teachers and by providing for the award of exhibitions, scholarships, prizes, grants and bursaries to students or independent students or otherwise and generally to encourage, promote and reward studies, researches indered likely to assist any of the business which the Company is authorized to carry on.

65. To take, or otherwise acquire and hold shares in any other company, having objects altogether or in part similar to those of this Company, or carrying on business capable of being conducted so as directly or indirectly to benefit this Company.

66. To be interested in, promote and undertake the formation and establishment of such institutions, businesses or companies, (industrial, agricultural, trading, manufacturing or others) as may be considered to be conducive to the profit and interest of the Company and to carry on any other business (industrial, agricultural, trading, manufacturing or others) which may seem to the Company capable of being conveniently carried on in connection with any of these objects or otherwise calculated directly or indirectly or render any of the Company' s properties or rights for the time being profitable, and also to acquire, promote, aid, foster, subsidies or acquire interest in any industry or undertaking. -"----*, ,

67. To institute, conduct, defend, compound or abandon any legal proc*Iings by or against the Company or its officers or otherwise concerning the affairs of the: Company and also to compound and allow time for payment or satisfaction of any debts due and

iof any claims or demands by or against the Compa y.

68. To refer any claims or demands by or against the any to arbitration and observe and perform the awards.

69. To remunerate the Directors, officials, servants of the Company and others out of or in proportion to the returns or profits of the Company or otherwise as the Company may think proper.

70. To enter into agreement with and / or employ workers, technicians, specialists, experts, consultants and other persons having special knowledge of matters relating to he business of the Company, on such terms, conditions and stipulations as the Company may deem proper.

71. To employ experts to investigate and examine into the conditions, prospects, value, character, and circumstances of any business, concerns and undertakings and generally of any assets, property or rights.

72. To depute any of the representatives, Directors, Managers, or other employees of the Company to any part of Pakistan or abroad for any of the purposes which may be expected to benefit the company, directly or indirectly with such staff as necessary, and incur such expenses of journey or voyage, lodging, boarding, and other expenses as may be necessary for these purposes and to make payment or to give remuneration to such person or persons through whose agency, assistance or mediation or efforts necessary facilities and help are made available to the Company towards one or more objects of the Company.

73. To provide the industrial classes with commodious and healthy lodging and dwellings, and to give them the maximum of accommodation at a minimum price so far as is compatible with the making of a sufficient profit by the Company to pay on the amount of share capital for the time being issued.

74. To promote and form any company or companies for the purpose of acquiring all or any of the property, rights and liabilities of this Company.

75. To amalgamate with any other Company whose objects are or include objects similar to those of this Company, whether by sale or purchase (for fully or partly paid-up shares or otherwise of the undertaking, subject to the liabilities of this or any such other company as aforesaid, with or without winding up or by sale or purchase (for fully or partly paid-up shares or otherwise) of all or a controlling interest in the shares of stock of this or any such other company as aforesaid, or by partnership, or any arrangement of the nature of partnership, or in any other manner.

76. To enter into contracts giving any persons or company the sole exclusive right to supply the company with any articles or commodities used or sold by the company, on such terms and conditions and for such period as may be determined from time to time.

77. To create any depreciation fund, reserve fund, sinking fund, insurance fund, dividend equalization fund, redemption fund or any other special fund whether for depreciation or for repairing, improving extending or maintaining any of the properties of the company or for any other purpose.

78. To enter into partnership, or into any arrangement for sharing profits union of interests, co-operation, joint ventures, reciprocal„eontessiOn or otherwise with any person or company carrying on or engaged in, out '03:d on, oi-engaged in any business or transaction capable of being carri ' on or conducted,5o k directly or indirectly to al benefit this company and to ad fince „money, to, or Iti. 'tee the contracts of, or otherwise assist any such person r company, arid.to' take,* otherwie acquire, shares and securities of any such co panyl%knnd to sell; 419111, .re-issue, with or without guarantee, or otherwise deal with the same. 1) 10%, i

79. To receive money as advance and to advance money on mortgage of immovable property, or on hypothecation or pletiF 9413-kov property to such persons, and on such terms as may seen expedient, and iitilartila ustomers of, and persons having dealings with the company.

80. To provide openings for the fullest possible employment of Pakistani nationals in the administrative and technical departments of the company and to accept Pakistani nationals as apprentices for training and to establish, provide, maintain and conduct schools, colleges, laboratories, workshops and other institutions for the education. training and instruction of Pakistani nationals whom the company may be able to take into service and who may desire to avail themselves for promotion to executive and technical posts, in the services of the Company.

81. To create a provident fund for the employees of the company and to provide for welfare of persons in the employment of the company of formerly engaged in any business acquired by the company the wives, widows, and families and dependants of such persons by grants of money, pensions, or other payments and by providing or subscribing towards places of instruction and recreation and hospitals, dispensaries. medical and other assistance as the company shall think fit, and to form, subscribe to or otherwise grant loans, scholarships or other facilities to students of technology relating to any or all of the businesses aforesaid and to assist any benevolent, religious. scientific, national or other institutions or objects which shall have any moral or other claims to support or aid by the company by reason of the locality of its operation or otherwise.

82. To obtain all powers and authorities necessary to carry out or extend any of the above objects.

83. To aid pecuniarily or otherwise, any association, body or movement having for an

• object the solution, settlement, or surmounting of industrial or labour problems or the promotion of industry or trade.

84. To advance money to members of staff or customers of the company or others having dealings with the Company with or without security and on such terms as the Company may deem expedient.

85. To promote, conduct, manage, contribute to or otherwise assist any arrangements for sharing profits, union of interest co-operation or other scheme for the benefit of the employees of the Company which may appear either directly or indirectly to benefit the Company to pay gratuity, pension, bonus, extra remuneration or compensation of any kind to any contractor, officer, servant or workman or other employee of the Company as the Company or its Directors may from time to time think fit.

• 86. To establish and support, or aid in the establishment and support of associations, institutions, funds, trusts and conveniences calculated to benefit persons who are or have been Directors of or who are or have been employed by or who are serving or have served the Company or any Company which is a subsidiary or associate of the company or the dependents or connections of such persons and to grant pensions and allowances and to make payments towards insurance.

87. To adopt, co-operate with, and carry out the industrial policy of the Government of Pakistan as may be declared from time to time.

88. To adopt, co-operate with, and carry out the industrial, financial, labours. social insurance and social welfare policies of the Federal or Provincial Governments.

89. To pay all costs, charges and expenses incurred or sustained in or about and establishment of the Company or which the Company sh preliminary including therein the cost of advertising, commiss brokerage, printing and stationery and expenses attendant u agencies, branches and local boards.

90. To form and incorporate any company or companies having amo 43 its or t #,01-1 the acquisition of all or any of the assets or control, management velopmepr Company or any other object or objects, which in the opinion of th any oi* , might directly or indirectly assist the Company in the management o • in (....J ... ftv In.0, ctse development of its properties or otherwise prove advantageous to the Co ;and to

pay all or any of the costs and expenses incurred in connection with any such promotion or incorporation and to remunerate any person or company in any manner it shall think tit for services rendered or to be rendered in obtaining subscriptions for guaranteeing the subscription of or the placing of any shares in the capital of the Company or any bonds, debentured. obligations or securities of the Company or any stock, shares. bonds, debenture, obligations or securities of any other company held or owned by the Company or in which the Company may have an interest or in or about the formation or promotion of the Company or the conduct of its business or in or about the promotion or formation of any other company in which the Company may have an interest.

91. To aid pecuniarily or otherwise any Association, body or movement having for an object the solution, settlement or surmounting of industrial or labour problems or troubles or the promotion of industry or trade.

92. To distribute all or any of the property of the Company among the members in specie or kind but so that no distribution amounting to a reduction in capital be made without the sanction of the Court if requisite.

93. To buy, sell, manufacture, refine, manipulate, import, export, and deal in all substance, apparatus and things capable of being used in any such business as aforesaid, or required by any customers of or persons having dealings with the Company, either by wholesale or retail.

94. To acquire, import, buy export; store, warehouse, manufacture, repair, manipulate, convert, hire, let on hire, alter, lease, charter, grow, treat, exchange, erect and / or set up machines, plant and equipment apparatus, accessories, chemicals, gases, fuels, stores, materials, lands, buildings and things of all kinds and description which may be required for the purposes of any of the above business.

95. To carry on the business of importers of all kinds of goods, commodities and merchandise from and to all countries in the world.

96. To carry on the business of general manufacturers and to manufacture, buy, sell, and deal in commodities, apparatus, machinery, materials and articles of all kinds.

97. To buy, sell, manufacture, refine, makeup . manipulate, import, export. store, warehouse, repair, convert, hire, let on hire, alter, charter. grow. treat, prepare for the market, exchange and deal both wholesale and retail in commodities, substances, apparatus, articles and things of all kinds capable of being used or which can be dealt in by the Company in connection with any of its objects.

98. To carry on the business of manufacturers of and / or dealers in all other articles and commodities akin to, or connected with, any of the businesses mentioned herein and also to carry on any other trade or business whether manufacturing (with or without power) or otherwise, which may seem to the Company capable of being conveniently carried on in connection with the above or calculated directly or indirectly to enhance the value of, or render profitable, any of the Company' s properties or rights.

99. To obtain all powers and authorities necessary to carry out or extend any of the above objects.

100. To promote and form other companies for all or any of the objects mentioned in this Memorandum or any extension thereof and to trans ?to any such company all or any or any of the property of this company/ nd to take or other e acquire and hold shares, debentUres or other securities of any such company, andit bsidies otherwise assist

,!? any such company. *

`‘.- , \ -,, z' ., L, li 101. And generally to do and perform all such Oth6r acts,aiodoetigs/Ills may be incidental or

conducive to the attainment of the above objects ,;ant o ern! vr

...i

•

•

102. To take advance money for the purpose of Business of this Company on mortgage of movable property, or on hypothecation or pledge of immovable property to such persons, and no such terms as may seem expedient, and in particular, to customers of, and persons having dealing with the Company.

103. To search for and purchase or otherwise acquire from any Government, State, or Authority any concession grants decrease, rights powers and privileges whatsoever which may seem to the Company capable of being turned to account concerning this Company.

104. To purchase or buy any other means acquire and protect prolong and renew, whether in Pakistan or elsewhere, any patent right, inventions, licences, trademarks, protections, and concessions which may appear likely to be advantageous or useful to the Company and turn to account and to manufacture under or grant licences or privileges in respect of the same and to spend money in experimenting upon and testing and improving or seeking to improve and patents, inventions or rights which the Company may acquire or purpose to acquire.

105. In the event of winding up distribute all or any of the property of the Company among the members in specie or kind but so that no distribution amounting to a reduction in capital be made without sanction of the Court where requisite.

106. To acquire and undertake the whole of the business property and liabilities of any person or company carrying on any business which the Company is authorized to carry on or professed of property suitable for the purposes of this Company.

107. To appoint representatives or agents and constitute agencies of the Company in any part of the world.

108. To amalgamate with any other company having objects altogether or in part similar to those of this Company and to enter into or any arrangement sharing profits union of interest, co-operation, joint venture, reciprocal concession or otherwise with any person or company carrying on or engaged in, or any business or transaction which this Company is authorized to carry on or engage in, or any business or transaction capable of being conducted so as directly or indirectly to benefit this Company.

109. To take or otherwise acquire and hold shares in any other company having object altogether similar to those of theis Company or carrying on any business capable of being conducted to as directly to benefit this Company or for investment of additional funds, concerning this company.

110. To promote any company or companies for the purpose of acquiring all or any of the property rights and liabilities of this Company or for any other purpose which may seem directly or indirectly calculated to benefit this Company.

111. To make, draw accept, endorse, discount, execute, or negotiate and issue cheques, Government of Pakistan and other securities and promissory notes, hundies, bill of exchange, bill of lading, warrants, debentures and other negotiable or transferable instruments or securities concerning this Company.

112. To invest surplus monies of this Company, not tiiirt617y 1-eq, d, upon such securities or in any investments, movable or imm a may from time to time be decided.

143. To guarantee performance of contracts signed b he Company.

tOk. 114. To sell or dispose of any undertaking of the Co 'p or antl/tur distr assets in

specie in event of winding up of the company. ,t+ ow<N)44 PAX

115. To pay all cost, charges and expenses of and incide motion, formation, 4c

registration and establishment of the Company and issue of it capital including any or

other commissions, brokers fees and charges in connection therewith and to remunerate (by cash or other assets or by allotment of fully paid shares of option on shares debentures, or securities of this or any other company or in any other manner whether out of the Company' s capital or profits or otherwise) any person for services rendered or to be rendered in introducing any property or business to the Company or in placing or assisting to place.

116. To borrow money in such manner as the Company may think fit and in particular by issue of debenture perpetual or otherwise convertible into shares or non convertible of this or any other Company or perpetual annuities and as security for any such money so borrowed, or received and to mortgage, pledge or charge whole of the property, assets or revenue of the Company, present or future by special assignment or otherwise or to transfer or convey the same as may seem expedient and to purchase, redeem or pay off any such securities.

117. To acquire by purchase, hire / lease any plant, equipment machinery, vehicle, material or any assets related to company business.

118. To open any current overdraft, cash credit account or fixed account with any bankers including Agents of the Company and to pay money into and draw money from any such account concerning this Company.

119. To manage, let, mortgage, shell, subject or otherwise turn to account dispose of or deal with all of property and assets real and personal or corporal and incorporeal, tangible or intangible and any right title and interest of the Company therein, including license, privileges, concessions and franchises as may seem expedient.

120. To aid pecuniarily or otherwise any association, body having for on object solution, settlement or surmounting of industrial or labour problems or troubles of promotion of industry or trade.

121. To subscribe, donate or money for any national, charitable benevolent, public, general or useful object including any educational institution, hospital, flood or famine relief fund and other institution or fund established for religious or charitable purpose.

122. To do and perform all such other acts aid things as may be incidental or conducive to attainment of above objects, or any of them.

123. To do or any of above things and such other things as are incidental or may be thought conducive to attainment above objects or any of them in any part of the world, and a principals, agents, contractor, importers, otherwise and either alone or in conjunction with others.

124.. The Company shall not engage in banking business or business Insurance and leasing of an investment company or any unlawful business and that nothing in object clause shall be construed to entitle it to engage in such business.

The objects set forth in any sub-clause of this clause shall not except when the context expressly so requires, be in anywise limited or restricted by reference to or inference from the terms of any other sub-clause or by the name of the Company. None of such sub-clauses or the objects therein specified or powers thereby conferred shall be deemed subsidiary or auxiliary and the Company shall have full powers to exercise from time to time all or any of the powers conferred by any part of this clause in any part or Parts of the world.

LIABILITY OF MEMBER Rail

IV. The liability of the members is limited. "a, 02,

- (0fie-1-ittncircd-Sixty-I- each with powers to the shares and to issue

V. The authorized share capital of the Company is Rs. Million Only) divided into4-60000-00 ordinary share of Rs.

e4' increase or reduce, the capital, -and T o consolidate or subdivi shares of higher or lower denomination.

• We, the severalpersons, whose names and addresses are subscribed below, are desirous of being formed into a Private Limited Company in pursurance of this Memorandum of Association, and we respectively, agree to take number of shares in the Capital of the Company set

opposite our respective names :

S.No. Name & Surname in full ( In Block Letters )

Father's Name in full Nationality with any former Nationality

Occupation Residential Address in full

No. of Shares taken by each

Subscriber

1 DR. ABDUL MALIK ARAIN S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

402, Plant Avenue, Plant City, Florida 33567

100

2 MOHAMMED SULEMAN ROSHAN S/o Haji Roshan Din Pakistani Business of Sugar

340-A, Roshan Havely, Tando Adam.

100

-i.k. WAJID ",,,,,.

S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

69-B, Block 2 . P.E.C.H.S. Karachi.

100

4 4.-

IMANIUDDIN S/o Haji Roshan Din Pakistani Business of Sugar

D-60, Block-7, Gulshan-e-lqbal

Karachi.

100

' A81501, KHALIQ „,- S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

Green Town, Sadigabad. District Rahimyar Khan.

100

,- .. NHBAZ ALI MALIK S/o Haji Muhammed Suleman Pakistani Business

of Sugar

340-A, Roshan Havely, Tando Adam.

100

7 ABDUL RAZZAQ S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

402, Plant Avenue, Plant City, Florida 33567

100

8 ZULFIQAR ALI ROSHAN 5/.:(,) / Haji Muhammed Suleman Pakistani Business 340-A, Roshan Havely, 100 I

k e7- r (..L.J.,,--- .2_,1 / ( , ( ,..(s , of Sugar Tando Adam.

1 800

Dated the 20' day- of j une 1998. 1-,

ctn. *id

THE COMPANIES ORDINANCE, 1984

(PUBLIC COMPANY LIMITED BY SHARE)

ARTICLES OF ASSOCIATION

OF

RANIPUR SUGAR MILLS (PRIVATE) LIMITED

1 The regulations contained in Table 'A" in the First Schedule to the Companies Ordinance. 1984 shall not apply to the company except insofar as they are repeated or contained in these Articles.

The chapter headings shall not effect the construction hereof and in these Articles, unless therein something in the subject or context inconsistent therewith.

a) The Ordinance" means the Companies Ordinance, 1984, as amended and now in force in Pakistan, and any amendment or re-enactment thereof for the time being in force.

b) "The Articles" means these Articles of Association, as originally framed or as altered from time to time by the Company acting at a meeting.

c) The Authority" means the Securities & Exchange Commission of Pakistan.

d) The Company" means RANIPUR SUGAR MILLS (PRIVATE) LIMITED

e) The Directors" means the Directors of the Company appointed from time to time pursuant to these Articles.

f) "Dividend" means the distribution of profits of the Company to its members.

g) "Special Resolution" has the meaning assigned thereto by Section 2 (1) (36) of the Ordinance.

h) "The Chief Executive" means the Chief Executive appointed from time to time by the Company pursuant to these Articles.

i) "Member" means a member of the Company within the meaning of the provisions of Section 2(1) (21) of the Ordinance.

j) "Month" means a calendar month according to the English calendar.

k) "The Register" means the register of members to be kept pursuant to Section 147 of the Ordinance.

1) "The Seal" means the common seal ado eckk)y,,the'Coj-npany.

41, , m) "In writing" and - 7

written" includes ultina lithography and other modes 41,

of representing or reproducing word ttra visible form.

.16711

Corapa CIet

n) Words importing the singular number include the plural number and vice versa.

o) Words importing the masculine gender also include the feminine gender.

p) Words importing persons include bodies corporate.

PRIVATE COMPANY

3. The Company is a Private Limited Company within the meaning of Section 2(1) (28) of the Companies Ordinance, 1984 and accordingly:

(a) No invitation shall be issued to the public to subscribe for any shares, debentures or debenture-stock of the Company.

(b) The number of members of the Company (exclusive of the persons in the employment of the Company) shall be limited to fifty, provided that for purposes of this provision where two or more persons hold one or more shares jointly in this Company, they shall be treated as a single member, and

(c) The right of transfer of share in the Company is restricted in the manner and to the extent hereinafter appearing. alt

CAPITAL AND SHARES

The authorized capital of the Company is Rs. 1-40-,fki0;ftet= divided into 4-6;000,000 ordinary shares of Rs. 10/- each with power to the Company from time to time to increase or reduce its capital and to divide the shares in the Capital for the time being into several classes subject to any permission required by law.

5. The shares shall be under the control of the Directors who may allot or otherwise dispose off the same to such persons, firms, companies, corporation on such terms and conditions at any such time as may be thought fit either at par or at premium or at discount as the Directors may think fit but subject to the provisions of Sections 83 and 84 of the Ordinance.

6. The shares in the capital of the Company may be allotted or issued in payment of any property, land, machinery or goods supplied or any services rendered to the Company in promotion or formation of the Company or conduct of its business and any shares so allotted may be issued as fully paid shares only.

The Board shall have full powers to issue and allot fully paid up shares either on payment of the entire nominal value thereof in cash or in satisfaction of any outstanding debt, liability or obligation of the Company.

8. Shares may be registered in the name of any limited company or other corporate body or in the name of individuals. Not more t i-fototpersons shall be registered as joint holders of any shares. °

TRANSFER OF SHARES

9. Subject to the provisions of these Articles, shares shall be transferable and following stipulations shall apply to the transfer of shares:

(a) A member of the Company may transfer a share to his/her spouse or to lineal descendent. A company member may transfer a share to a related company. The expression related company shall means any company controlling, controlled by or under common control with the shareholder.

(b) (i) A member proposing to transfer any shares (hereinafter called the Proposing Transferor) to a person who is not a member of the company shall give notice in writing (hereinafter called a transfer notice) to the Company that he desires to transfer all or part of his shares.

(ii) Subject to any direction which may be made otherwise by the Company by Ordinary Resolution, within a period of thirty days from the receipt of the transfer notice as aforesaid the Company shall offer to each of the existing members of the Company such number of the shares included in the transfer notice as is pro rata or as nearly as may be to the holding of each member respectively on the condition that if each member desires to purchase all of such number of the said shares offered to him at the proposed price he shall within ninety days of the offer be entitled to apply for the purchase and transfer of the same and the Proposing Transferor shall be bound, upon payment to him of the proposed price of such shares, to transfer the shares to the member or members applying.

(iii) In case my member shall not have applied for the purchase. and transfer of all of the shares to which he is entitled, the Company shall, subject to any direction given )y the Company by Ordinary Resolution, within thirty days of the late at which the offer closed, offer the untaken shares to such of th members as have applied for the purchase and transfer of all of f le shares to which they were entitled by the terms of the original offer subject as aforesaid proportion to the holding (including the shares bought on the original offer) of each of such members and subject as aforesaid proportion to the holding (including the shares bought on the original offer) of each of such members and subject as aforesaid they shall be entitled within ninety days of the • offer to apply for the purchase and transfer of a pro rata number of the said untaken shares and subject as aforesaid the Proposing Transferor shall be bound, upon payment to him of the proposed price of such shares, to transfer the shares to the members or member applying.

(iv) If the Proposing Transferor shall fail to execute a transfer in respect of any shares so sold he shall nevertheless be deemed to have executed such transfer. The COmpany shall thereupon cause the names of the members who have purchased the be entered in the Register as holders of such shares t here a tht",,, validity of the proceedings shall not be questio d

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(v) If the members have not applied for the purchase of shares as mentioned in clause (ii) and (iii) above, the Proposing Transferor shall be entitled to sell all shares to the prospective buyer after the date of expiry of the offer. Provided that the members other than the Proposing Transferor shall have the right to refuse such a transfer if the prospective buyer is a competitor of the company.

(c) (i) In case the member wishes to sell all his shares in circumstances other then mentioned in (b) (i) above he shall give a notice to the Company in writing to this effect.

(ii) The Company shall within a period of thirty days from the receipt-of the said notice offer to each of the existing members of the Company such number of the shares as is prorata or is as nearly as may be to the holding of each member respectively on the condition that if each member desires to purchase all of the said shares offered to him he shall within one hundred and fifty days of the offer be entitled to apply for the purchase and transfer of the same. The price at which the shares will be transferred is the book value to be computed in the manner provided in paragraph (c) below.

(iii) In case no member shall have applied for the purchase and transfer of all of the shares to which hi is entitled, the Company shall, subject to any direction given by the Company by ordinary Resolution, within thirty days of the date at which the offer closed the untaken shares to such of the members as have applied for the purchase and transfer of all of the shares to which they were entitled. by the terms of the original offer subject as aforesaid proportion to the holding (including the shares bought on the original offer) of each of such members and subject as aforesaid they shall be entitled within thirty days of the offer to apply for the purchase and transfer of a prorate number of the said untaken shares and subject as aforesaid the Proposing Transferor shall be bound, on payment to him of the hook value of such shares, to transfer the shares to the member or members applying.

(d) Any person acquiring shares in the Company by purchase, inheritance or otherwise shall enter into a shareholders agreement with the existing members failing which he will be bound by the existing shareholders agreement.

(e) For the purpose of this clause the book value of each share shall be such sum, if any, as the auditors for the time being of the company shall certify provided that it is expressly declared that the fair shall not include anything for goodwill but shall be the higher of the following:

I. The sum total of the following divided by the number of shares issued by the company:-

(i) The anmountpf capital paid-up;

(ii) Any rese/ve fund or other fund of t Company;

(iii) All reserve shown in the audited Balance Sheet drawn up as at the immediately preceding year end including any balance in the Profit and Loss Account consisting of or representing undistributed profit or losses;

(iv) The difference between the market value of the assets and the value at which the assets are stated in the audited Balance Sheet referred to in sub-clause (iii) of this article. For determining the market value, the Auditors may at their discretion require the Company to appoint qualified valuers.

II. The average annual after tax profits of the past three years disclosed in the audited Balance Sheet of the Company multiplied by two and a half times and divided by the number of shares issued by the Company.

10. The instrument of transfer of any share shall be in writing in the usual or common form or in such other form as the Board shall from time to time approve and must be left at the office, accompanied by the certificate of shares to be transferred and such other evidence (if any) as the Board may require to approve the title of the intending transferor or his right to transfer the shares. The instrument of transfer of any share shall be signed both by the transferor and the transferee, and the transferor shall be deemed to remain the holder of such share until the name of the transferee is entered in the Register in respect thereof. Each signature to such transfer shall be duly attested by the signature of one credible witness who shall add his address and occupation. No transfer shall be registered the nonregistration whereof is necessary for the purpose of ensuring that the number of members does not exceed the limit prescribed in Article 4.

11. All instruments of transfer which shall be registered shall he retained by the Company, but any instrument of transfer which the Board may decline to register shall be returned to the person depositing the same, within thirty days from the date on which the instrument of transfer was lodged with the Company.

12. Under no circumstances shall a share be transferred to any infant, insolvent or person of unsound mind.

TRANSMISSION OF SHARES

13. The executors, administrators, heirs on nominees, as the case may be, of a deceased sole holder of a share shall be the only persons recognized by the Company as having any title to the share. In the case of a share registered in the names of two or more holders, the survivors or survivor, or the executors or administrators of the deceased Survivor shall be the only person recognized by the Company as having any title to the shares.

14. Any person becoming entitled to a share in consequence of the death or insolvency of a member shall, upon such evidence being produced as may from time to time be required by the Directors, have the right, either to be registered, as a member in respect of the share or instead of being registered hi „such transfer of the share as the deceased or insole ent person cou ave made;,but Directors shall, in their cause, have the same right clec,JiwOK, bus registration as they would have had in the case of a tra fef of the sharel)y the deceased or insolvent person before the death or insolve N,;M

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15. A person becoming entitled to a share by reason of the death or insolvency of the holder shall be entitled to the same dividends and other advantages to which he would be entitled if he were the registered holder of the share, except that he shall not, before being registered as member in respect of the share, be entitled in respect of it to exercise any right conferred by membership in relation to meeting of the Company.

16. The Company shall keep a book to be called the "Register of Transfers" and therein shall be fairly and distinctly entered the particulars of every transfer and transmission of any shares.

17. The instrument of transfer of any shares shall be in writing in the usual common form or in the following form or as near thereto as circumstances will permit:

ALTERATION OF CAPITAL

18. The Company may from time to time by Resolution in general meeting increase its Authorized Share Capital comprising of any class and denomination by the issue of new shares of such amount as it thinks expedient.

19. Except and so far as otherwise provided by the conditions of issue or by these Articles, any capital raised by the creation of new shares shall be considered part of the Authorized Capital and shall be subject to the provisions herein contained with reference to transfer and transmission, voting and otherwise.

20. The Company may by Special Resolution reduce its share capital in any manner and with and subject to any incident authorized and consent required by law.

21. The Company may from time to time by ordinary resolution of the shareholders consolidate, divide, subdivide its existing shares into larger or smaller amounts in accordance with section 92 of the Ordinance.

Where at any time the Board directors to increase the issued capital of the Company by issuing any further shares, then subject to any directions to the contrary that may be given by the Company in General Meeting, such shares shall be offered to the members in proportion to the existing shares held by each member, and such offer shall be made by notice specifying the number of shares to which the member is entitled, and specifying a time within which the offer, if not accepted, will be deemed to be declined and after the expiration of such time, or on receipt of information from the member to whom such notice is given that he declines to accept the shares offered, the Board may dispose of the same in such manner as it may consider most beneficial to the Company.

BORROWING POWERS

23. The Board may from time to time borrow any money for the purposes of the Company from the members or from any other persons, firms, companies, corporations, institutions, or banks, or the Directors may themselves advance any money to the Company.

24. The Board may secure payment of su sum or sums of money in such manner and upon such terms and conditio 'in all respect as they\think fit, and in particular by the issue of bonds, erpetual or redeemable Aclbentures, or by mortgage or charge or other securitttie whole or atiy art epf' the property, assets and rights of the Company (bo Orese,nt and futdr0.' 7

•

25. Any bonds, debentures or other securities issued or to be issued by the Company shall be under the control of the Board which may issue them upon such terms and conditions and in such manner and for such consideration as shall be considered by the Board to be for the benefit of the company.

26. Any bonds, debentures or other securities may be issued at a discount, premium or otherwise and with any special privilege as to redemption, surrender, drawing, convertibility into shares, attending and voting at General Meeting of the Company, appointment of Directors and otherwise, provided that debentures with the right to vote or convertible into shares shall not be issued unless authorized by a Special Resolution of the Extraordinary General Meeting of the Shareholders.

27. To indemnify any person liable for the payment of any sum primarily due from the Company, the Board may execute or cause to be executed any mortgage, charge or security over the whole or any part of the assets of the Company to secure the Directors or persons so becoming liable as aforesaid from any loss in respect of such liability.

GENERAL MEETING

28. An Annual General Meeting of the Company shall be held within eighteen months from the date of incorporation of the Company and thereafter once at least in every calendar year at such time and place as may be determined by the Board, provided that no greater interval than fifteen months shall be allowed to elapse between two such general meetings. All other General Meetings of the Company shall be called Extraordinary General Meetings.

29. The Board may call an Extraordinary General Meeting whenever it shall think fit. An Extraordinary General Meeting may also be convened on the requisition of the members in accordance with the provisions of Section 159 of the Ordinance.

NOTICE OF THE GENERAL MEETING

30. At least twenty one clear days notice of every general meeting, specifying the date, place and hour of the meeting and with a statement of the business to be transacted at the meeting, shall be given to the persons entitled thereto under and in manner provided by the Ordinance and these Articles.

31. Where it is proposed to pass a special resolution, at least twenty-one clear days notice specifying intention to propose the resolution as a Special Resolution and specifying the date, place and hour of meeting, whether Annual or Extraordinary, and the nature of the business, shall be given.

32. With the consent of all members entitled to receive notice of a meeting, or to attend and vote at any such meeting, a meeting may be convened by shorter notice than specified in the foregoing article with the permission of the Registrar.

33. In the case in which notice of any meeting called by the Board is the shareholders individually, the accidental omission to give no mrty of the., shareholders or the accidental non-receipt thereof shall any, resolution passed at any such meeting.

13

PROCEEDINGS AT GENERAL MEETING

34. Two members entitled to vote and present in person who represent not less than (25%) twenty five percent of the total voting power either of their own account or as proxies shall be a quorum for a General Meeting and no business shall be transacted at any General Meeting unless the requisite quorum is present at the commencement of the business.

35. The Chairman of the Board shall be entitled to take the chair at every General Meeting, or if there be no Chairman, or if at any Meeting he shall not be present within 15 minutes after the time appointed for holding such Meeting, or is unwilling to act, the Vice Chairman shall act as Chairman and in his absence or unwillingness also, one of the Directors present may be elected to be Chairman, and in default of their doing so, the members present shall choose one of the Directors to be Chairman, and if none of the Directors, is present or willing to take the chair, the members present shall choose one of the members to be the Chairman.

36. If within half an hour of the time appointed for the holding of a General Meeting a quorum is not present, the meeting of convened on the requisition of the members, shall be dissolved, and in every other case shall stand adjourned to the same day in the next week at the same time and place or to such other day, time and place as the Board may by notice to the shareholders appoint. If at such an adjourned Meeting a quorum is not present, the members present being not less than two shall be the quorum and may transact the business for which the meeting was called.

37. The Chairman with the consent of the meeting may adjourn any meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than business which might have been transacted at the meeting from which the adjournment took place.

38. At any General Meeting a resolution put to the vote of the Meeting shall be decided on a show of hands, unless poll is (before or on the declaration of the result of the show of hands) demanded.

39. If a poll is demanded as aforesaid it shall be taken in such manner and at such time and place as the Chairman of the meeting directs, and either at once or after an interval or adjournment, and the results of the poll shall be deemed to be the resolutiOn of the meeting at which the poll was demanded. The demanded for a poll may be withdrawn.

40. Any poll duly demanded on the election of a Chairman of a Meeting or on any question of adjournment shall be taken forthwith and without adjournment.

41. The demand for a poll shall not prevent the continuation of meeting for the transaction of any business other than the question on which the poll was demanded.

MINUTES OF THE GENERAL MEETING

42. Minutes shall be made in books provided for the purpose of all resolutions and proceedings at General Meetings, and any such minOle if signed by any person purporting to have been the Chairman uf the Meeting tor„ (rich it relates or by the Chairman of the Board shall be receivable as evidence o P11e facts therein stated without further proof.

VOTES OF MEMBERS

43. Upon a show of hands every member entitled to vote and present in person or by proxy shall have one vote, and upon a poll every member entitled to vote and present in person or by proxy shall have one vote for every share conferring voting rights as aforesaid held by him.

44. Any person entitled under the Transmission Clause to Transfer any shares may vote at any General Meeting in respect thereof as if he was the registered holder of such shares. provided that at least 48 hour before the time of holding the meeting or adjourned meeting. as the case may be, at which he proposes to vote he shall satisfy the Directors of his right to transfer such shares unless the Directors shall have previously admitted his right to vote at such meeting in respect thereof.

45. No person shall be appointed a proxy who is not a member of the Company and qualified to vote, save that a corporation or a Company being a member of the Company may appoint as proxy or as its representative under Section 162 of the Ordinance any person though not a member of the Company. and the person so appointed shall be entitled to exercise the same powers on behalf of the corporation which he represents, as that corporation could exercise if it was an individual member of the Company. Any such appointment shall be authorized by a resolution of Directors of that company or corporation.

46. Every proxy shall be appointed in writing under the hand of the appointer or by an agent duly authorized under Power of Attorney or if such appointer is a company or corporation under the common seal of the company or corporation or the hand of its Attorney who may be the appointer.

47. Any proxy declared expressly on its face to be irrevocable shall not be revoked or be deemed revoked by the member giving such proxy whether by attendance at any General Meeting held during the period of such proxy or by an other action on his part whatsoever, or otherwise during the term of such proxy if such proxy is furnished to and filed with the records of the Company, and the Company shall be bound to recognize and give effect to such proxy in accordance with the terms thereof.

48. No person shall act as proxy unless the instrument of his appointment and the Power of Attorney, if any, under which it is signed shall be deposited at the office of the Company at least forty eight hours before the time for holding the meeting at which he proposes to vote.

49. An instrument of proxy may be in the following form, or in any other form which the Directors, shall approve.

RANIPUR SUGAR MILLS LIMITED

"I of in the district of being a member of Limited, hereby appoint as my proxy to vote for me and on 9..1c-behalf at the (Annual/Extraordinary as the case may be) General meeting/of the-Company to be held on the day of and at any adjournment thereof".

50. A vote given in accordance with the terms of an instrument of proxy shall be valid not withstanding the previous death of the principle or revocation of the proxy or of any power of attorney under which such proxy was signed provided that no information in writing of the death of revocation shall have been received at the office before the meeting.

51. No objection shall be made to the validity of any vote except at the meeting or at the poll at which such vote shall be tendered, and every vote whether given personally or by proxy not disallowed at such meeting or poll shall be deemed valid for all purposes of such meeting or poll.

52. If question is raised, the Chairman of the meeting shall decide on the validity of every vote tendered at such meeting in accordance with these Articles.

53. (a)

A Corporation or any other company registered under the Ordinance or under any other repealed Companies Act, where such Corporation or such other company, is a member of the Company may, by resolution of its Directors, authorize any of its officials or any other person to act as its representative at any meeting of the company, and the person so authorized shall be entitled to exercise same powers on behalf of such Corporation or such other company if he was in individual shareholder of the Company.

(b) Any other Corporation or company which is the creditor of the Company may authorize any of its officials or any other person to act as its representative at any meeting of the creditors of the Company held in pursuance of the Ordinance or any other meeting to which it is entitled to attend in pursuance of the provisions contained in any debenture or trust deed or any other document and the person so authorized shall be entitled to exercise the same power as are available to such Corporation or such other company which he represents.

DIRECTORS

54. There shall be not less than two Directors of the Company. The Directors shall fix the number of elected Directors of the Company not later than thirty five days before the convening of the General Meeting at which Directors are to be elected, and the number so fixed shall not be changed except with the prior approval of the General Meeting of the Company.

55. The investors as provided under section 183 of the Ordinance shall have powers to nominate such number of Directors in the Board of Directors of the Company, as are proportionate to its holding in the paid-up capital of the company. The Director so nominated shall not be subjected to the provisions of these Articles regarding eligibility for appointment, election, retirement, removal, casual vacancy or vacation of office i$cluding the provisions of Section 178, 180 and 181 of the Ordinance.

56. The Directors may deleg*ilheir powers.. to committees consisting of such member or members as t

57. Any committee so fo ned,

1 40 ..:the exekig of the powers so delegated conform to any regulatiOrtS th „may",15eArivosed ahem by the Directors.

•

58. Until otherwise determined by the Company in General Meeting, each Director shall be entitled to be paid as remuneration for his services a fee at the rate of Rs. 500/- per meeting. Each Director (including each alternate Director) shall be entitled to be reimbursed his reasonable expenses incurred in consequence of his attendance at meeting of the Directors, or of Committee of Directors.

59. Any Director who serves on any committee or who devotes special attention to the business of the Company or who otherwise performs services which, in the opinion f the Board are outside the scope of the ordinary duties of a Director, may be paid such extra remuneration by way of salary or allowances as the Company in General Meeting may determine.

QUALIFICATION OF A DIRECTOR

60. A Director shall not require any share qualification, so long as only subscriber's shares are in issue. After the first issue of shares the qualification of a Director shall be holding of 01 shares in the Company of the nominal value of Rs. 10/- at least, in his own name. In the case of Directors representing interest holding shares of the requisite value no qualification shall be required.

POWERS AND DUTIES OF DIRECTORS

61. The control of the Company shall be vested in the Board and the business of the Company shall be managed by the Board, which may pay all expenses incurred in forming and registering the Company, and may exercise all such powers of the Company as are not by the Ordinance or by these Articles required to be exercised by the Company in General Meeting, subject nevertheless to the regulations of these Articles, to the provisions of the Ordinance and such regulations (not inconsistent with aforesaid regulations or provisions), as may be prescribed by the Company in General Meeting but no regulation made by the Company in General Meeting shall invalidate any prior act of the Board which would have been valid if the regulation had not been made.

62. The Board may exercise all the powers olthe Company to borrow money and to mortgage or charge its undertaking, property and assets (both present and future), and to issue debentures obligation of the Company, or of any third party.

63. The Board shall cause minutes to be made in books provided for the purpose.

(a) of the names of Directors present at each meeting of the Board of any committee of Directors.

(b) of all resolutions and proceedings at all meetings of the Company and of the Board and of committee of Directors.

Any such minutes of any meeting of the Board or of a Committee of Directors or of the Company, if signed or purporting to be signed by the Chairman of such meeting, or of the next succeeding meeting, shall be receivable as evidence of the matters stated in suc The books containing minutes of General Meeting shall istered office of Company and shall be open to inspe

64. The Board may pay and agree to pay pension or other retirement, super annuating, death or disability benefits or allowances to any person in respect of any Director of former Director who may hold or may have held any executive officer or employment under the Company, or any subsidiary company of the Company, or its holding company (if any), and for the purpose of providing any such pensions or other benefits or allowances, may contribute to any scheme or fund and may make payments towards insurance or trusts in respect of such persons.

CHIEF EXECUTIVE

65. The Directors may appoint one of their body or any other person to the office of Chief Executive. The first Chief Executive of the Company shall be appointed by the first Directors as per the provisions of Section 198 of the Ordinance. The Chief Executive so appointed shall unless he earlier resigns or otherwise ceases to hold office, hold office until the conclusion of the first Annual General Meeting. Thereafter the Directors shall appoint the Chief Executive within 14 days of their appointment in the first or subsequent Annual General Meetings, for a period of 3 years.

The terms of appointment of the Chief Executive shall be fixed by the Board of Directors as they thinks fit. The Chief Executive shall receive such remuneration (whether by way of salary, commission or participation in profit, or partly in one way and partly in another), as the Company in the General Meeting may determine.

66. Any casual vacancy occurring to the office of the Chief Executive shall be filled in by the Directors. The Chief Executive so appointed shall hold office for the reminder of the term of the Chief Executive in whose place he is appointed.

67. The Director by resolution passed by not less than three-fourth of the total number of directors for the time being, or the Company by a Special Resolution, may remove a Chief Executive before the expiration of his term of office notwithstanding anything contained in these articles or in any agreement between the Company and such Chief Executive.

68. The Director may entrust to and confer upon the Chief Executive any of the powers exercisable by them upon such terms and conditions and with such restrictions as they may think fit, and either collaterally with or to the exclusion of their own powers, and may from time to time revoke, withdraw, alter or vary all or any of such powers.

THE SEAL

69. The Board shall provide for the safe custody of the Seal, and the Seal shall never be used except by the authority of the Board or a Committee of Directors previously given, and one Director at least shall sign every instrument to which the Seal is affixed, provided, nevertheless, that any instrument bearing the Seal of the Company and issued for v*able-constderation shall be binding on the Company notwithstanding any irregularity touching any authority to issue the same.

DISQUALIFICATION OF DIRECTORS

70. The office of a Director shall be vacated if:

(a) He is found to be of unsound mind by a court of competent jurisdiction; or

(b) He is adjudged an insolvent or compounds with his creditors; or

(c) He or any firm of which he is a partner or any private company of which he is a Director without the sanction of the Company in General Meeting, accepts or holds any office of profit under the Company other than that of a Chief Executive or a Manager or a legal or technical adviser or a banker; or

(d) He absent himself from three consecutive meetings of the Directors or from all the meetings of the Directors for a continuous period of three months, whichever is the longer, without leave of absence from the Directors; or

(e) He acts is contravention of Section 214 of the Ordinance, or

(f) He resigns from his office by notice in writing to the Company; or

(g) He fails to obtain within two months after his appointment, or at any time thereafter cease to hold the share qualification, if any, necessary for his appointment, subject to the provision of Section 187(h) of the Ordinance.

71. The appointment of an Alternate Director under these Articles shall constitute leave of absence to the Director for whom such an alternate is appointed during such Director's absence.

ROTATION, ELECTION AND REMOVAL OF DIRECTORS

72. The members in General Meeting may make regulation providing for the periodic retirement of the Directors, but all times in accordance with the Ordinance.

73. The Directors of the Company shall fix the number of Directors to be elected in the General Meeting of the Company as per the provisions of the Ordinance. The Directors shall be elected by the members of the Company in General Meeting in the following manner, namely.

(a) a member shall have such number of votes as is equal to the product of the number of voting shares held by him and the number of Directors to be elected.

(b) a member may give all his votes to a single candidate or divide them between more than one of the candidates in such manner as he may choose; and

(c) the candidate who gets the highest number of votes 11 be declared elected as Director and then the candidate w the The highest '• number of votes shall be so declared and so ',total nunfher of Directors to be elected, have been so elected. ?,(,,.%. „ ,„

t

The elected Directors shall hold office for a period of three years and be subject to re-election as aforesaid unless he earlier resigns or becomes disqualified from being Directors or otherwise ceases to hold office.

74. Any casual vacancy occurring among the Directors may be filled up by the Directors and the person so appointed shall hold office for the remainder of the term of the Director in whose place he is appointed.

75. A Director may be removed from office by a resolution passed in the manner as provided in Section 181 of the Ordinance.

PROCEEDING OF DIRECTORS

76. The Directors may meet together for the dispatch of business, adjourn and otherwise regulate meetings of the Board as they think fit. The Chairman or the Chief Executive, if any, may at anytime and shall on the written requisition of two Directors at any time, summon a meeting of the Board. At least fourteen clear days notice must be given to all Directors to summon a meeting of the Board, and such notice shall set forth the purpose or purposes for which such meeting is summoned. However, with the consent of all Directors entitled to receive notice of a meeting, or to attended and vote at any such meeting. a meeting of the Board may be convened by shorter notice than specified in this Article.

77. The Board may, whenever it deems fit in order to expeditiously carry out its business, hold its meetings outside Pakistan, provided:

(a) due notice is given to all the directors entitled to receive notice, and

(b) the quorum for the meeting could assemble at the proposed place of meeting.

78. A meeting of the Board for the time being at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretions by or under these Articles vested in or exercisable by the Board generally. Two directors present personally shall constitute quorum for a Board Meeting.

79. The Chairman shall, whenever present, preside as Chairman at each meeting of the Board but if at any meeting the Chairman is present and not willing to act or is absent beyond ten minutes after the time fixed for holding the same, the Vice Chairman shall act as Chairman. In the absence of both the Chairman and the Vice Chairman or in the event of the unwillingness of both to act, the Directors present shall within fifteen minutes of the time fixed for the meeting choose one of their number to be Chairman of such meeting.

80. All acts done by meeting of the Board or of a Committee of Directors, or by any person acting as a Director or Alternate Director shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Directors or persons acting as aforesaid, or that they or any of them were disqualified, be as valid as if every-such Director or person had been duly appointed and was qualified to act s.

81. .A, resolution in writing, exce for the: Matter spec in Section 196 of the Ordinance, signed by all Directors shill be effective as if st‘ch resolution had been passed at a meeting of the Dir

ALTERNATE DIRECTORS

82. Any Director not permanently resident in Pakistan and any Director so resident out intending to be absent there from for a period of not less than three months may appoint any person acceptable to the Board to be an Alternate Director of the Company to act for him. Every such appointment shall be in writing under the hand of the Director making the appointment. An Alternate Director so appointed shall not be entitled to appoint another Alternate Director, but shall otherwise be subject to the provisions of these Articles with regard to Directors, except that he shall require no share qualification. An Alternate Director shall be entitled to receive notices of all meetings of the Board and to attended and vote as a Director at any such meeting at which the Director appointing him is not personally present, and generally to perform all the functions of his appointer as Director in the absence of such appointer. An Alternate Director shall ipso facto cease to be an Alternate Director if his appointer for any reason ceases to be a Director or if and when his appointer returns s to Pakistan, or removes the appointee from office by notice in writing under the hand of the appointer.

DIVIDENDS AND RESERVES

83. The Company is General Meeting may declare dividends, but no dividend shall

• exceed the amount recommended by the Board.

84. No dividend shall be paid otherwise than out of profits of the year, or of any other undistributed profits from prior years.

85. Subject to the rights of any person entitled to shares with rights as to dividends, the profit distributed as dividends shall be distributed among the shareholders and all dividends shall be declared and paid according to the amounts paid on the shares. If any share is issued on the term that it shall rank for dividend as from a particular date, such share shall rank for dividend accordingly.

86. The Board may, before recommending any dividend, set aside out of the profits of the Company such sums as they think proper as a reserve or reserves, which shall, at the discretion of the Board, be applicable for meeting contingencies, or for equalizing dividends, or for any other purpose to which the profits of the Company may be properly applied, and pending such application may, at the like discretion, either be employed in the business of the Company or be invested in such investments (other than shares of the Company) as the Board may from time to time think fit.

87. If several persons are registered as joint holders of any shares, any one of them may give effectual receipt for any dividend payable on the share.

88. No dividend shall bear interest against the Company.

89. (a) Any dividend may be paid by cheque or warrant sent through the registered post of the registered address of the member or person entitled thereto, or in the case of joint holders to any one of such joint holders at his registered address or to such person and at such address as the member or person entitled or such joint holders, as the case may be, direct. No dividend shall be paid by the Company in respect of any sha except to the registered holder or to his order or to his financial institution nominated by him for the purpose shall be made within thirty (30) days of the declaration.

(b) Dividends unclaimed for one year may be invested or otherwise used by the Board for the benefit of the Company until claimed.

CAPITALIZATION

90. Any General Meeting may, upon recommendation of the Board resolve that any undivided profits of the Company (including profits carried and standing to the credit of any reserve or reserves or other special accounts or representing premiums received on the issue of shares and standing to the credit of the share premium account), not required for paying the Dividends on any shares issued, be capitalized. Such capitalized undivided profits shall be distributed amongst such of the shareholders as would be entitled to receive the same if distributed by way of dividend, and in the same proportions, on the footing that they become entitled thereto as capital. All or any part of such capitalized fund may be applied on behalf of such shareholders for payment in full or in part either at par or at such premium as the resolution may provide, for any unissued shares or debentures of the Company which shall be distributed accordingly.

ACCOUNTS

91. The Board shall cause to be kept proper books of account. The books of account shall be kept at the registered office or at such other place as the Board shall think fit.

92. The Board shall from time to time determine whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to inspection of members and no member shall have any right of inspecting any account or books or document of the Company except as conferred by laws or authorized by the Board or by special resolution of the Company in General Meeting.

93. Within eighteen months of the incorporation of the Company, and subsequently once in every Calendar year, within a period of six months following the closing of its financial year and not more than fifteen months after the holding of its last preceding Annual General Meeting, the Director shall lay before the Company in General Meeting a balance sheet and profit and loss account, both made up in accordance with the Ordinance. Every such balance sheet shall be accompanied by Auditor's report and the Director's report, in accordance with the provisions of the Ordinance in that behalf.

94. A copy of the report of the Directors and of the Balance Sheet (including every document required by law to be annexed thereto) and of the profit and loss account shall be sent to all members along with the notice convening the General Meeting before which the same are required to be laid.

AUDIT

95. Auditors shall be appointed and their duties regulated in accordance with the Ordinance.

N IcE i \

96. (a) A notice may be given)by the' Company to arty hicmber either personally or by sending it by pctst to him at his rekistereti• dress or (if he has no registered address in Pakist'an), to the . dress, i any within Pakistan supplied by him to the

\ Company for the,grih cC tices to him.

\.' -: i ,,,.•,. '\,' •%

(b) Where a notice is sent by post, service of the notice shall be deemed to be effective by properly addressing, prepaying and posting a letter containing the notice, and unless the contrary is proved, to have been effected at the time at which the letter would be delivered in the ordinary course of post.

97 (a) If a member has no registered address in Pakistan and has not supplied to the Company an address within Pakistan for the giving of notice to him, a notice advertised in a newspaper circulating in the neighborhood of the registered office of the Company shall be deemed to be duly given to him on the day the advertisement appears.

(b) If a member has supplied an address to the Company within Pakistan as contemplated by sub-clause (a) above, the Company, in addition, shall furnish to such members notices at an address outside Pakistan which has been supplied by him to the Company.

98. A notice may be given by the Company to the joint holders of shares by giving the notice to the joint holder named first in the register in respect of the shares.

99. A notice may be given by the Company to the persons entitled to a share in consequence of the death or insolvency of a member by sending it through the post in a prepaid letter addressed to them by name, or by the title of representative of the deceased, or assignee of the insolvent, or by any like description, at the address (if any) in Pakistan supplied for the purpose by the persons claiming to be so entitled, or (until such an address has been supplied) by giving the notice in any manner in which the same might have been given if the death or insolvency had not occurred.

SECRECY

100. Every Director, Chief Executive, Manager, Auditor, Trustee, member of a committee, officer, servant, agent, accountant or other person employed in the business of the Company shall, if so required by the Board before entering upon his duties, sign a declaration in the form approved by the Board pledging himself to observe strict secrecy respecting all transactions of the Company, its customers and the statement of accounts with individuals and in matters relating thereto, and shall by declaration pledge himself not to reveal any of the matters which come to his knowledge in the discharge of his duties except when required so to do by the Board or by any General Meeting, or by a court of law, and except as far as may be necessary in order to comply with any provisions in these Articles contained.

WINDING UP

101. If the Company shall be would up (whether voluntarily or otherwise), the liquidator may, with the sanction of a Special Resolution, divide among the members in specie or kind any part of the assets of the Company and may with the like sanction vest any part of the assets of the company in trustees upon such trust for the benefit of the members or any of them as liquidators, shall think fit.

s

102. The liquidator may, with the like sanctions, vest

4fhtli --or pat f atcla assets f — . 4. in trustees upon such trusts for the benefit of the einber as the uidatot,"■Vith

44 ' ., the like sanction, shall think fit, but so that n nitmber shall be comperk to . ,. .r . , A accept any shares or other securities whereon the i, any ha* % '

..)

INDEMNITY

103. Every Director, Chief Executive, Manager or Officer of the Company or any person (whether an officer of the Company or not), employed by the Company as Auditor or Advisor shall be indemnified out of the funds of the Company against any liability incurred by him, as such Director, Chief Executive, Manager, Officer, Auditor or Advisor, in defending any proceedings, whether civil or criminal, in which judgment is given in his favour or in which he is acquitted, or in connection with any application under Section 488 of the Ordinance in which relief is granted to him by court.

104. No Director, Chief Executive, or other Officer of the Company will be liable for the acts, receipts, neglects or defaults of any other Director or any Officer or for joining in any receipt of other act for conformity, or for any loss or expense happening to the Company through the insufficiency or deficiency of title to any property acquired by order of the Directors, Chief Executive, or other Officer for or on behalf of the Company, or for insufficiency or deficiency of any security in or upon which any of the monies of the Company shall be invested or for any loss or damage arising from the bankruptcy, insolvency or tortuous act of any person with whom any monies, securities or effects shall be deposited, or for any loss occasioned by an error of judgment or oversight on his part, or for any other loss, damage..or,misfortune whatever which shall happen in the execution of the duties of his office or in relation thereto, unless the same happens through his own dishonesty.

•

Dated:- 28-06-2013

Generation License

Ranipur Sugar Mills (Pvt.) Ltd.

Ranipur Dist. Khairpur Sindh

Details of

The Generation Facility/

Power Plant (A). General Information

(i). Name of Applicant Ranipur Sugar Mills (Pvt.) Limited.

(ii). Registered/Business Office RanipurHouse : 23-F/1, Block -6, P.E.C.H.Society

Karachi.

(iii).

Plant Location Ranipur Dist. Khairpur Sindh.

(iv) Type of Generation Facility Bagasse Based Cogeneration Facility.

(B). Plant Configuration

(1). Plant size Installed Capacity

(Gross ISO)

25.5 MW

(ii). Type of Technology Steam Turbine Generator

(iii). Number of Units/Size (MW)

Generator No.1 Generator No. 2 Generator No.

3,4,5

1 x 15 MW 1 x 6 MW 3 x 1.5 MW

(iv). Unit Make & Model

Generator No.1 Generator No. 2 Generator No.

3,4,5

Skoda Triveni FCB (France)

(v). Commissioning/Commercial

Operation date (of each Unit)

1" Feb 2014 1" Feb 2014 Already in

operation

(vi). Minimum Expected Life of

the Facility form Commercial

Operation/Commissioning Date

30 Years 30 Years 30 Years

As provided by Ranipur Sugar Mills (Pvt.) Limited

Page 6 of 8 of Schedule-I

Generation License

Ranipur Sugar Mills (Pvt.) Ltd.

Ranipur Dist. KhairpurSindh ,

(C). Fuel Details

(i). Primary Fuel Bagasse

(ii). Alternate Fuel Biomass

(iii). Start Up Fuel Bagasse

(iv) Fuel Source for each of

the above (i.e Imported/

Indigenous)

Indigenous

(v). Fuel Supplier for each of the

above

RSML and from Local Market

(vi). Supply Arrangement for the

above

Conveyors / Transportation

(D). Emission Values

(i). SOx Not Applicable

(ii). NOx 650 mg/Nm3

(iii). CO 986 mg/Nm3

(iv) PM10 Not Applicable

(C). Cooling System

Cooling water Source/Cycle Canal Waterobtained through tubewells/Closed

Loop.

• Page 7 of8 of Schedule-I

Generation License

Ranipur Sugar Mills (Pvt.) Ltd.

Ranipur Dist. Khairpur Sindh ,

•

(C). Fuel Details

(i). Primary Fuel Bagasse

(ii). Alternate Fuel Biomass

(iii). Start Up Fuel citrj7 B,ate&i,e Netc—fte4,11 eq_J-g-S • (iv) Fuel Source for each of the

above (i.e Imported/Indigenous)

Indigenous .

(v). Fuel Supplier for each of the

above

RSML and from Local Market

(vi). Supply Arrangement for the

above

Conveyors / Transportation

(D). Emission Values

(i). SOx Not Applicable

(ii). NOx 650 mg/Nm3

(iii). CO 986 mg/Nm3

(iv) PM10 Not Applicable

(C). Cooling System

(i) Cooling water Source/Cycle Canal Water obtained through tubewells /

Closed Loop.

Page 7 of8 of Schedule-I

•

•

Generation License

Ranipur Sugar Mills (Pvt.) Ltd.

Ranipur Dist. KhairpurSindh ,

SCHEDULE -

1 Gross installed capacity of the Generation

facility (1 x 15 MW + 1 x 6 MW + 3 x 1.5 MW) 25.5 MW

2 Gross De-rated Capacity of the Generation Facility at Mean Site Condition (1 x 13.5) +

(lx 5.40 MW) + (3 x 1.35 MW) 22.95MW

3 Auxiliary Consumption of the Generation

Facility (23 Mw) 2.9 MW

4 Net Capacity of the Generation Facility at Mean Site Condition

20.05 MW

Note

All the above figures are indicative as provided by the licensee. The Net Capacity available to

SEPCO for dispatch will be determined through procedure(s) contained in the Bi-lateral Agreement(s) or

any other applicable document(s).

As provided by Ranipur Sugar Mills (Pvt.) Limited

Page 2 of 2 of Schedule-II

• We, the several persons, whose names and addresses are subscribed below, are desirous of being formed into a Private Limited Company in pursurance of this Memorandum of Association, and we respectively, agree to take number of shares in the Capital of the Company set opposite our respective names :

S.No. Name & Surname in full ( In Block Letters )

Father's Name in full Nationality with any former Nationality

Occupation Residential Address in full

No. of Shares taken by each

Subscriber

1 DR. ABDUL MALIK ARAIN S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

402, Plant Avenue, Plant City, Florida 33567

100

2 MOHAMMED SULEMAN ROSHAN S/o Haji Roshan Din Pakistani Business of Sugar

340-A, Roshan Havely, Tando Adam.

100

3 ABDUL WAJID S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

69-B, Block 2 . P.E.C.H.S. Karachi.

100

4 IMAMLTDDIN S/o Haji Roshan Din Pakistani Business of Sugar

D-60, Block-7, Gulshan-e-lqbal Karachi.

100

5 ABDUL KHALIQ S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

Green Town, Sadiqabad. District Rahimyar Khan.

100

6 SHAHBAZ ALI MALIK S/o Haji Muhammed Suleman Pakistani Business 340-A, Roshan Havely, 100

7.- ' /----.7.■.,,.. of Sugar Tando Adam.

7 ABDU4 ZZAQ S/o Chowdry Ghous Muhammed Pakistani Business of Sugar

402, Plant Avenue, Plant City, Florida 33567

100

8 ZULFIQAR ALI ROSHAN- ..- (-/3/ i/ - - : 7

.: f T--S/o

Haji uhammed Suleman ec(r- - -,

Pakistani Business of Sugar

340-A, Roshan Havely, Tando Adam.

100

16A e 1, ' ,e- 800

Z

Dated the 20th day cif dune 1998.

Kanpur Pakistan

4 Rampur Sugar Mills "

G ,

o(Nte earth

G000ic earth

1. Location

The Plant site is located in Ranipur Sugar Mills which is 1.5 kilometers from the city of

Ranipur on main National Highway N-5. Ranipur is situated in District Khairpur, Sindh. The

nearest railway station is about 4 km from site location in Ranipur city and the nearest

airport is about 75km in Sukkur. The Latitude and Longitude are 27.2878 and 68.5380 decimal degrees respectively. The total area of Ranipur Sugar Mills is 132 areas out of which

50 acres is used for Farming Purposes. The Plant would be installed inside the Sugar Mill.

L INES GRIDS LINES GRIDS

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RE v. DATE 23-D-03

EXISTING PROPOSED

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RANIPUR SUGAR MILLS

Denomination

PROPOSED SINGLE LINE DIAGRAM OE 12 MW POWER 11XPOR I' DEPCO

Date 29-04-13

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132 Kv Grid Slai.on. Aim"... Proposed Feeder Length 08 km

•

5. Cooling Water Source

The Requirements of Water source for the Sugar Mill are met by a tube well installed near

Kotri Canal at a distance of 2km from the Plant as shown below in Yellow. The Mill has its

own Pumping Station through which Water is Pumped from the Tube well to the plant. The

Power Plant will use the same source for cooling water purposes

• •

10. Environmental Aspects

10.1 Introduction

The environmental impact of the proposed power station covering the following aspects

and the measures for controlling the pollution within the values specified by Pakistan Environmental Protection Act 1997 is briefly discussed in this chapter:

• Air pollution

• Water pollution

• Noise pollution

10.2 Air Pollution

The Ranipur Sugar Mills power project will not cause any Air pollution environmental impact

and will be within local and international environmental standards. Potential air quality

impacts will be minor and acceptable due to the following factors:

• The Plant incorporates Electrostatic Precipitator (E.S.P) which captures most of the Particulates Emission.

• The site has good air shed characteristics that include exposure to prevailing winds that

are directed away from sensitive receptors, lack of air inversions, and distance from populated areas.

• Stack emission heights will be designed according to good engineering practice.

10.3 Water Pollution

There is no way that the water gets contaminated from power plant cooling system. Gas

conditioning technology has been selected to minimize water requirements and therefore minimize potential impacts associated with water uses.

10.4 Other measures

• On-site treatment or management of potentially polluting discharges will be

implemented including containment facilities, grease and oil traps around areas draining workshops and fuel storage areas, and septic tanks for sanitary waste.

• An impermeable evaporation basin will be provided near the site for the disposal of wastewater.

• Procedures will be established for the safe storage, handling, transport and recycling of waste oil according to international best practices.

• Appropriate building and facilities will be established for on-site storage of oils, fuels and

other chemicals. There will be firefighting and clean-up facilities and procedures, all in

accordance with international best practices.

• There will be no need for land acquisition and subsequent resettlement since project land is currently owned by Ranipur Sugar Mills.

Significant socioeconomic benefits will accrue from the project including:

• Economic benefits through employment creation, fulltime local job during the life of the

project operation and maintenance period, and a much larger local labor during the initial construction period.

• Skills transfer and development opportunities

• Socioeconomic benefits associated with improved electricity supply.

10.5 Noise Pollution

All equipment in the power plant would be designed/operated to have a noise level not

exceeding 85 to 90 dBA as per the requirement of Occupational Safety and Health

Administration Standard. In addition, since most of the noise generating equipment would

be in closed structures, the noise transmitted outside would be still lower.

•

6. Interconnection with National Grid

132 KV Gambat Grid station belongs to Sukkur Electric Power Company (SEPCO) is about 6

km away from the Project site. The distance is shown in the picture below in green:

7. Infrastructure /1p,,,e17

Ranipur Sugar Mills is located on Main National Highway N-5. It is at a distance of 4 km from

Ranipur Railway Station. Access to site is not problematic. Staff colonies are already built

which would be used for this project as well. All amenities i.e. Water, Electricity and Gas are

already available at site.

•

R N PU

SUGAR MILLS PVT) LTD. S

COMPANY PROFILE

RANIPUR SUGAR MILLS (PVTI LID .

LIST OF DOCUMENTS PAGE # • Reasons for Acquiring the Ranipur. Sugar Mills (Pvt.) Ltd. 1 to 3

Group Profile of the New Sponsors of Ranipur Sugar Mills (Pvt.) Ltd. 4

Shares Holding Position of the Directors

History of the Company since. incorporation. 6-1

5.) Details of the existing operations of the company. 8 - 9

• 6.) Details of existing infra structure of the company including land, area,

factory premises, labour colony, godown and etc. 10 to 12

Details of Sponsors / Management of the company 13 to 18

8.) Profile of the other key management of the company including number

of employees and existing workforce. 19 to 21

RANIPUR SUGAR MILLS (PVT) LTD.

REASONS FOR ACQUIRING OF RANIPUR SUGAR MILLS

Chief Executive Ranipur Sugar Mills Dr. Abdul Malik Arain is one of the leading Surgeon practicing in

the U.S.A. for the last more than 37 years. Like many Pakistani Physician & Surgeon he was interested

in participating the economic development of his home land. He was keen to invest in agriculture or

Agro base industry, considering this sector to be the backbone of any National Economy. He,

therefore, in consultation with other directors of the company purchase the Consolidated Sugar Mills

which had gone into bankruptcy and remain out of operations for 5 years due to neglect of the

company management major consideration and reasons under lying the decision to invest in the sugar

manufacturing unit are placed below :

The industrial Plant purchased by us on easy terms and condition which was payable after two

years grace period and markup rate was also attractive whereas at that time existing rate was

18 % our succeeding open bid of the cost value of Rs. 375.000 million was on following

terms and condition.

a.) Payable to Official Assignee 375.000 million

Less: Down Payment 87.000 million

Balance Payable 288.000 million

b.) Remaining amount is payable in eight equal annual installments after two years from the

date of possession.

c.) Mark-up payable would be 11% per annum and accrued after two years from the date of

possession of the mills.

The Plant was imported from FCB France which is rated to be one of the best makes in the

world. The cane crushing capacity of the mills was 3,500 M. Tons per day and can be raised

upto 4,000 M. Tons per day with minimum investment. The sugar produced in this plant was

acceptable in world market due to its good quality.

1

RANIPUR SUGAR MILLS LTD.

The Mills was situated on Highway of Ranipur, District Khairpur (Sindh) and well connected

with main railway line and all principal cities of the Country which was ideal for the Sugar

Industry because of following advantages :

a. Existing availability of the Sugarcane.

b. Potential for Development of future supplies without much effort.

c. Sugar Cane field for lifting of Cane is well connected throughout Pacca roads.

d. The infrastructure facilities were conveniently available. The Prime quality of water was

abundantly available and there was no problem for disposal of effluent water due to

availability of drainage channels near by.

The company was 134 Acres of land. 84 acre was used for factory, Colony etc. and 50 acres

was used for Agriculture Farm. The area of land was connected with main metalized road. All

approached roads were mainly metalized roads, however some of the roads were katcha but

were useable in the rainy season. The road system were for better and company was in a

position to procure sugarcane from far off areas.

410 iv) One Sugar Mill Khairpur Sugar Mills Ltd. was located in the region and having a cane

crushing capacity of 4000 M.T. per day. Thus with the present available sugarcane in the area

and potential for further development the available sugarcane meets the requirement of both

sugar mills.

v) To sustain production and to have the finished goods there were two godowns of 20,400 and

18,640 Sq.Ft. The quality of the building construction was in good condition. The factory

building and the machine foundations which were of most importance, at present the quality

of foundation and buildings were satisfactory.

Company were also the following buildings and residential accommodation and their overall

construction work and position were satisfactory.

RANIPUR SUGAR MILLS (PVTI LTD.

a.) Main Factory Building

b.) Metalled Cane Yard

c.) Offices Building (Main Office, Cane Office, Time Office and Security Office)

d.) Guest House

e.) Officers Hostel

f.) Family Accommodation for Officers (A, B and C Type Bungalows)

g.) Family Quarters for Workers

h.) School Building

i.) Barracks for Bachelor Workers

j.) Two Mosques for Colony and Factory

k.) Factory and Colony Metalled Road

To meet the power requirement during the season Four Generators of 1.50 MW each. were

available for Off-Season and stand by requirement, The Plant was Diesel Generator of 600

KW. Fuel requirement was meeting burning bagasse which was supplemented by use of

Suigas.

The water requirement of the project was not pose any problems as canal water was available.

Moreover 6 Tube Wells were also installed to meet the requirement of the Mills as well as of

the Farm.

3

R A N IPUR SUGAR MILLS !Pvn

GROUP PROFILE OF THE NEW SPONSORS

• The sponsors of the company have sufficient cash resources, ample industrial experience and they have

in a position to meet their obligation under the financial flame with ease.

The following persons are the Sponsors of the company.

1) Dr. Abdul Malik Amin Chief Executive

2) Mr. Abdul Waiid Amin Director

3) Miss. Yasmeen Malik Director

4) Mr. All Malik Director

5) Mt. Khalid Malik Arain Non-Director

6) Mr, Jawaid Malik Arain Non-Director

•

4

RANIPUR SUGAR MILLS (PVT) LTD.

SHARES' HOLDING POSITION OF DIRECTORS

Directors' Name N.I.C. Nos. No. of Ordinary Value Percentage of

1 Mr. Abdul Malik Arain 423019-125181-1 Shares 3,501,050 Rs. 35,010,500 18.06%

s/o. Chodhary Ghous Muhammed

2 Mr. Abdul Wajid Arain 42301-9371709-5 Shares 100 Rs. 1,000 0.00%

s/o. Chodhary Ghous Muhammed

3 Miss. Yasmeen Malik

d/o. Abdul Malik Arain

423017-020319-4 Shares 9,888,900 Rs. 98,889,000 51.00%

4 Mr. Ali Malik Arain

s/o. Abdul Malik Arain

422019-479232-7 Shares 1,999,950 Rs. 19,999,500 10.31%

5 Mr. Khalid Malik Arain

s/o. Abdul Malik Arain

422018-969247-9 Shares 1,999,950 Rs. 19,999,500 10.31%

6 Mr. jawaid Malik Arain

s/o. Abdul Malik Arain

422012-905473-5 Shares 1,999,950 Rs. 19,999,500 10.31%

4 Mr. Abdul Razaq 31304-2116618-3 Shares 100 Rs. 1,000 0.00%

s/o. Chodhary Ghous Muhammed

Total

!Shares 19,390,000 Is. 193,900,000 I 100%

5

RANIPUR SUGAR MILLS jPVT) LTD.

HISTORY OF THE COMPANY SINCE INCORPORATION

1.) The company was incorporated in Pakistan as a Private Limited company on July 4, 1998. The

principal business of the company is manufacturing and sale of sugar. The mills is located at

Ranipur, Taulka Kot Diji, District Khairpur, Sindh. The authorized shares capital of the

company is Rs. 160,000,000/- divided into 16,000,000 ordinary shares of Rs.10 each fully paid

in cash to the following sponsors group.

i.) Nominee of Popular Group of Industries 50 1)/0

i.) Nominee of Doctor Abdul Malik Group 50 %

On 7th May 2002 Doctor Group purchased the 50% shares of the Popular Group of Industries

and retired all the directors of the Popular Group.

2.) Ranipur Sugar Mills (Pvt.) Limited was purchased of Assets of the Consolidated Sugar Mills Ltd.

through Official Assignee of Sindh High Court after succeeding open bid for the cost value of

Rs.375.000 million on following Terms and Conditions :

i) Payable to Official Assignee 375.000 million

Less: Down Payment 87.000 million

Balance Payable 288.000 million

Remaining amount is payable in eight equal annual installments after two years from the date of

possession.

iii) Mark-up payable would be 11% per annum and accrued after two years from the date of

possession of the mills.

6

•

RANIPUR .SIJCIAR S ;1"111 LTD.

iv) The position of eight installments are as under :

Date of

Installments

Amount

Payable

Installment

Paid by Co.

Mark-up Total Amount

Paid

30.06.2001 36,000,000 56,000,000 31,146,576 87,146,576

30.06.2002 36,000,000 16,000,000 26,586,191 42,586,191

30.06.2003 36,000,000 36,000,000 23,760,000 59,760,000

30.06.2004 36,000,000 36,000,000 19,800,000 55,800,000

30.06.2005 36,000,000 36,000,000 15,840,000 51,840,000

30.06.2006 36,000,000 36,000,000 11,880,000 47,880,000

30.06.2007 36,000,000 36,000,000 7,920,000 43,920,000

30.06.2008 36,000,000 36,000,000 4.884,000 40,884,000

288,000,000 288,000,000 141,816,767 429,816,767

RANIPUR SUGAR MILLS /PVT) LTD.

DETAILS OF THE EXISTING OPERATIONS OF THE COMPANY

The possession was taken over by the new management on 01 July, 1998. The closure of mills for

• last seven years necessitated major repairs and overhauling of Plant and Machinery to bring it into

operations. Due to prolonged period of closure major parts of the plant were rusted and eventually

replaced. Through intensive efforts of the management the mill was brought into functioning for

trial production in a relatively short period of time. Capital expenditure of Rs. 67.000 million was

spent to under take major renovation, replacement and maintenance works so that the mills could be

made functional enough to commence production. The mill started trial production on November,

1998 and continued there commercial production for the Season 1999 - 2000 to 2010 - 2013 during

that seasons management has also spent further Rs. 400.000 million to add new machinery to

increase the capacity of plant and also to improve major problems of machinery and in a position to

crush 4,000 M. Tons sugarcane per day with best quality sugar production. Resulting that plant

• performance was better than previous years.

Season wise operational results of the plant are enclosed.

8

35,339.000

-

36,095.000

-

28.683.000

-

25,805.000 27.415.000

-

40,063.000

-

35.339.000 36,095.000 28,683.000 25.805.000 27,415.000 40.063.000

706,780 721,900 573,660 516,100 548,300 801.260

16,177.000 17,692.000 14,760.000 12,821.000 13,696.000 22,960.000

9

Sugar Production

- Sugar Cane

(M. Tons)

- from Raw Sugar (M. Tons)

Total Production

(M. Tons)

Molasses Production (M. Tons)

Total Bags (50 Kg. Bags)

RANIPUR SUGAR "0.111:, (PVT! LTD

Ranipur Sugar Mills (Private) Limited

Operational Results For the Seasons

28-Nov-2012

31-Mar-2013

124

20-Nov-201 1

28-Mar-2012

130

26-Nov-2010

28-Mar-2011

123

08-Nov-2009

05-Mar-2010

118

14-Nov-2008

17-Mar-2009

124

15-Nov-2007

22-Apr-2008

160

(M. Tons) 381.679.059 400,700.233 331,119.387 290,835.701 308,706.707 469,149.922

(Maunds) 9.541,961 10,017,509 8,277,985 7,270,891 8,270,963 12,569,606

9.265% 9.008% 8.663% 8.872% 8.876% 8.542%

4.238% 4.415% 4.459% 4.408% 4.435%

Particulars 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008

Season Starting Date

Season Closing Date

Duration

Cane Crushed

Recovery Sugar

Recovery Molasses

RANIPUR. SUGAR MILLS WWI LTD.

EXISTING INFRASTRUCTURE OF THE COMPANY

1.) AREA :

The Mills is situated on Highway of Ranipur, District Khairpur (Sindh) and well connected with main • railway line and all principal cities of the Country which is ideal for the Sugar Industry because of

following advantages :

a) Existing availability of the Sugarcane

b) Potential for Development of future supplies without much effort.

c) Sugar Cane field for lifting of Cane is well connected throughout Pacca roads.

d) The infrastructure facilities are conveniently available. The Prime quality of water is abundantly

available. We have no problem for disposal of effluent water due to availability of drainage

channels near by.

2. ) LAND :

• The company has 134 Acres of land. 84 acre is used for factory, Colony etc. and 50 acres is used for

Agriculture Farm. The area of land is connected with main metalized road. All approached roads are

mainly metalized roads, however some of the roads are katcha but are useable in the rainy season. The

road system are for better and company is in a position to procure sugarcane from far off areas.

3.) FACTORY PERMESIS :

To sustain production and to have the finished goods we have two Godowns of 20,400 and 18,640

Sq.Ft. The quality of the building construction is in good condition. The factory building and the

machine foundations which are of most importance, at present the quality of foundation and

construction works of buildings are satisfactory. The details of the buildings and residential

accommodation are enclosed. Their overall construction work and position are satisfactory.

to

RANIPUR SUGAR MILLS !PVT) LTD.

4.) Utilities :

We have Four Generators of 1.50 MW each. For Off-Season and stand by requirement, Company has

Diesel Generator of 600 KW. Fuel requirement is meeting burning bagasse which is supplemented by

use of Suigas.

5.) Water :

The water requirement of the project has not pose any problems as canal water is available. Moreover

6" Tube Well are also installed to meet the requirement of the Mills as well as of the Farm.

6.) Model Farm :

The company has developed a Model Farm in the area of 25 acres of land. Further 25 acres land is

under the process of development of new sugarcane varieties which will be distributed among the local

growers for cultivating. It is a leveled area and is out of reach of the floods. The under ground water is

fit for irrigation. Besides this, abundant canal water is available which is ideal for Sugarcane crop as well

as Sugar Industry. We have taken the following steps to insure smooth flow of good quality of the

sugar cane to the mills.

i.) Helping the growers with the loans.

ii.) Providing them with the best quality of the seeds.

iii.) Practical demonstration on the model farm.

iv.) Sending the teams of experts to the growers and helping to lift the cane immediately.

v.) Any other services to growers which they may require.

•

DETAILS OF BUILDING AND CIVIL CONSTRUCTIONS

S/Nos. Description Construction Area

Type of Covered

(Sq.Feet)

1 Guest House A 8100 2 G.M. House A 2240 3 B-Type Bunglow B 15950 4 C-Type Bunglow B 26964 5 D-Type Bunglow B 12920 6 Unloading Contractors Baracks C 4800 7 Cane Carrier Contractors Baracks C 13734 8 Colony Labour Baracks C 5625 9 Primary School B 4325

10 MCB Building A Token Office 11 B

1578

1080 12 Time Office B 921 13 Excise Office B 661 14 Security Office B 496 15 Union Office B 1109 16 Weigh Bridge B 392 17 Post Office B 496 18 T.P.T. Office B 204 19 Cane Office B 4892 20 Main Office A 4200 21 Cane Accounts Office B 1835 22 Canteen B 3573 23 Workshop B 11362 24 Godown Office B 1180 25 M.T. Workshop C 4100

ill

26 Factory Mosque B 521 27 Mill Main Building B 40160 28 Sugar Godown - 2 B 20400 29 Sugar Godown -1 B 18640 30 Electrical Power House B 656 31 Diesel Power House B 1485 32 Baging House Extension B 4160 33 Ladies Club B 690 34 Fair Price Shop C 560 35 Social Security C 1300 36 Worker Club B 2100 37 Colony Mosque 1982 A 3300 38 Pesh Imam Residence 1982 B 800 39 O.H. Tank B 49200 40 Filter Plant B 1800 41 Unloading Labour Room B 1536 42 Sulpher Store B 225

43 Spray Pound C 52324 44 Boundry Wall 6' C 290400 Rft

it

RAN1PUR suGAR MILLS Tyr) LTD.

SPONSORS / MANAGEMENT OF THE COMPANY

SPONSORS

The Board of Directors of the company are responsible for overall policies, planning, direction and

control of the company. The Chief Executive assisted by the professionals who are well qualified in

their respected field.

The following persons are the Directors of the company.

1) Dr. Abdul Malik Chief Executive

2) Mr. Abdul Wajid Director

3) Miss. Yasmeen Malik Director

4) Mr. Ali Malik Arain Director

The sponsors of the company have sufficient cash resources and ample industrial experience. They

have in a position to run the project in the most efficient and professional way and also to meet their

obligation under the financial flame with ease.

1.) Dr. Abdul Malik :

He is a Doctor of Medicine and Senior Orthopedic Surgeon and doing his practice in plant city of

Florida, U.S.A. for the last 42 years. He has sufficient cash resources and to take up his share of equity

without any difficulty. He is a member of the following Associations and college of medicine in U.S.A.

13

RANIPUR

Diploma American Board of Orthopedic Surgeon.

Fellow of American College of Surgeon.

Fellow of American College of Orthopedic Surgeon.

Member of American Medical Association.

Member of Florida Medical Association.

• He is running his own modern well equipped Clinic at Plant City of Florida, U.S.A. As a Surgeon he is

in the panel of SOUTH FLORIDA BABTIST HOSPITAL which is the best hospital in the Plant City

of Florida, U.S.A. and also consultant of various reputed organization. He is also running his other side

business of Real Estate, Pension and Profit Sharing.

2.) Mr. Abdul Wajid :

Academic Qualification :

M.A. (Political Science) ; L. L. B.

•

Business Background :

1.) Sponsor Director of Ranipur Sugar Mills (Private) Limited and working as Chief Executive of

the Company since 2002.

2.) Member of Pakistan Sugar Mills Association. Elected as Chairman of PSMA-Sindh Zone in

2006 and now again for 2008-09.

3.) Proposed Director of Zaraie Taraqiyati Bank

4.) Member of Karachi Chamber of Commerce and Industries

14

RANIPUR SUGAR MILLS INT) LTD.

Industrial and Business Experience :

Managing day to affairs of the company and running sugar mills since 1998. Technically and

administratively experienced and have knowledge in depth of the Management process. I possess vast

experience of managing industrial unit and business enterprises with very high profitability and success.

The single handedly re-planed and brought into production a liquidated one of the foremost sugar mills

of the Pakistan m/s. Consolidated Sugar Mills that went into liquidation for financial failure. The mill

was brought from the Sindh High Court and renamed as Ranipur Sugar Mills (Private) Limited. Now

Ranipur Sugar Mills is producing sugar that is rated best in the country and tarries a premium in the

price. For more than 10 Years Ranipur Sugar Mills (Pvt.) Ltd. has been a profitable unit having already

paid total loan amount to the Sindh High Court against the mill was bought.

I am absolutely dedicated to ensure that sugar industry must play a very important role in advancement

of the national economy. God willing Pakistan shall be able to have a very progressive sugar industry

rooted in a very good relationship between the sugar cane growers and the industrialist. As a Chairman

my important role involve resolution of various issues between the Government of Pakistan, Sugar

Industry and the Sugar Cane Growers and I am getting successful in our objective.

Professional Experience :

Having comprehensive industrial and business experience through making successful investments in

accordance with the developments of national economy. Consistent success has been achieved by

ensuring continuously advanced synergic applications of modern technology to successfully compete in

the local as well as global cutthroat competition.

Corporate Activity :

Well connected in the corporate sector to facilitate collaboration with foreign countries and enterprises

to the mutual benefit of Pakistan and the country making investment here. Member of the leading clubs

15

RANIPUR Si...!CAR MI5 ,f".111 LTD.

to buildup and intellectual dialogue to fully integrate Pakistan into global economy and enable the

foreign investors to reap most attractive benefits that our nation offers at this point of time.

Investment Opportunities in Pakistan :

Contrary to general perception Pakistan is offering most attractive investment opportunities in each and

every sphere of business and industrial activity particularly in higher value added production to serve a

massive population of 170 million. The stock exchange is not mirroring substantially fast economic

progress and the index is steadily rising to prove the point. There is no restriction on repatriation of

profits or investments on foreign investors.

Contacts with the Government:

Have always been closely connected with the Government policy makers and economic institutions so

that Pakistan could benefit from the global wealth generating capacity never approximated in any

historical epoch. Through such communications between the Government and our sugar industry — for

example — the production of sugar in Pakistan is most competitive and we are selling sugar at the price

lower than anywhere in the world. The economists responsible for formulating national economic

policy have always sought exchange of ideas with me to maximize economic benefits to the country.

Political / Social Activities :

He has very good relation with all the leading Political Personalities and as well as in the Government.

a. Running a school in Kotdiji, Ranipur Sindh for poor people.

b. Providing medical facilities in Khairpur and specially organizing eye camps etc.

c. Built and run very well equipped operation theater in Gambat Civil Hospital.

d. Running a charity trust specially for widows and orphans.

16

•

RANIPUR SUGAR MILLS U'VTI LID,

Membership

i.) Defence Golf Club — Karachi

ii.) Royal Rodale Club — Karachi

iii.) Dreamworld Resorts Ltd. — Karachi

iv.) Karachi Art Counsel

3.) Miss. Yasmeen Malik :

She is a graduate and further studied in Florida, U.S.A. and appointed as director from 01-Jan-2006 in

AGM.

4.) Mr. Ali Malik :

He is a graduate and further studied in Florida, U.S.A. and appointed as director from 01-Jan-2009 in

AGM.

17

RANIPUR SUGAR MILLS Iwo LTD.

5.) Mr. M. Attique ur Rahman :

He is working as Director Operations and Corporate Secretary of the company since September-1999.

He is Commerce Graduate and completed five years mandatory period of Audit services as required by

Institute of Chartered Accountant of Pakistan with M/s. A. F. Ferguson & Company, Chartered

Accountants, Rawalpindi. He has 30 years bright experience of Sugar Industry included Financing,

Installation and Operations of 3 new sugar projects. He has also been worked as General Manager of

the project of various sugar mills in N. W. F. P. and Sindh and vast experience to run the project. He is

a good administrator and dealing all the legal, corporate, financial matters of the company included

arrangement of Long Term and Short Term Finance Facilities from various DFIs / Banks, leasing

companies and other financial institutions. He has managed all the required financial facilities with best

planning and run the project successfully. He is a capable to bale out the project from financial crisis.

6.) Mr. Muhammed Akhtar :

He is working as General Manager of the company since October-2002. He is Masters in Science

(M.Sc.) Agriculture. He has 35 years experience of Sugar Industry included Cane Procurement,

Development and has a good reputation with the dealing of growers. He has vast experience of Mills

Operations, Administration and also worked as General Manager of various sugar mills of Sindh and

Punjab.

7.) Mr. Muhammed Jameel Bhatti :

He is working as Deputy General Manger (Technical) of the company since July-2005. He has diploma

of Associate Engineer in Mechanical and Technical side. He has 26 years bright experience of Sugar

Industry as Mechanical Engineer. He is technically sound and especially in Boiler operations of mills.

He has vast experience of sugar industry and worked as Technical Manager of various sugar mills in

Sindh and Punjab. He is a good administrator of his technical department.

18

R A N IPUR SUGAR MILLS (PVT) LTD.

PROFILE OF THE OTHER KEY MANAGEMENT OF THE

COMPANY

The operational efficiency of Men, Material, Money, Machinery and Management determines

the quality of operating results of any venture. In our case the Management is technically and

administratively experienced and has knowledge in depth of the management process. The

lower level of the management is knowledgeable, skilled and experienced.

MANAGEMENT STRUCTURE

A team of professionals are responsible for the day to day operations of the company they had

been paid emoluments higher than the normal to attract better and reliable talents. The

management structure of the company alongwith Number of existing work force, permanent

and contractual employees are enclosed.

19

PROJECT INTRODUCTION & CONCEPT •

•

1. INTRODUCTION

1.1 Background

1.2 Background of RSM performance. • 1,3 Overview of Ranipur Sugar Mill Complex

•

1. Introduction and General information 1.1 BACKGROUND

The Ranipur sugar Mills (Pvt.) Limited (RSM), was established in the year1977, Crushing

Capacity of 2300 TCD with the name of Consolidated Sugar Mills Limited and was closed in

1992.

Present Management accrues the mill in auction in 1998 and that time the crushing capacity

was 3500 TCD. The Mill is Located near City Ranipur in Sindh Province.

In view of sufficient cane availability in the near future, RSM proposes to expand its capacity

upto 8000 TCD in the immediate future. The expanded Capacity is expected to be achieved

• by start of 2014-2015 crushing season.

In order to take advantage of incentives offered by the Government of Pakistan and to integrate

the expansion project for future mill operations, RSM also proposes to implement a

cogeneration power project to enable export around 14 MW of power to National grid.

The Cogen project envisages installation of high pressure boiler, matching double

Extraction cum condensing TG set, Condensing TG set, auxiliary equipment and all required

grid paralleling / interfacing equipment,

The cogeneration project with expanded mill capacity will make optimum use of available

bagasse during the season operation. During the off season operations of the power Plants,

saved bagasse will be used to ensure optimum export and number of operating days. Other

• agro waste fuels or purchased bagasse and Rice Husk from other mills will be additional option

available with RSM to increase the plant operation in the off season.

Sindh is famous for its high quality rice and has a large population of rice mills. Several Process

industries use rice husk as a fuel in AFBC Boiler. Rice husk is available at RSM through dealers

in Sindh. RSM also has a sufficient land in the mill premises and vicinity to store rice husk.

In addition Local Coal will be an additional option alongwith bagasse in new Boiler to safe

sufficient bagasse to operate power plant for 330 days in a year to safe bagasse and Local coal

during off season,

3

It is also intended to achieve maximum energy savings in the existing and future operations

(over and above significant energy and bagasse savings already achieved by RSM), by

introducing necessary techniques and equipment. This will enable RSM to optimise exportable

surplus from the project.

1.2 BACKDROP ON RSM'S PERFORMANCE

1.2.1 Following table illustrates physical performance of RSM for

Operational Results For the Seasons

Recovery Sugar

Recovery Molasses

2012-2013 2011-2012 2010-2011

\ -2012

31-M4r-2013

20-Nov-2011

28-Mar-2012

26-Nov-2010

28-Mar-201 1

1 '4 130 123

(M. Tons) 381.679.059 400,700.233 331,119.387

(Maunds) 9.541,961 10,017,509 8,277.985

9.265% 9.008% 8.663%

4.238% 4.415% 4.459%

Particulars

Season Starting Date

Season Closing Date

Duration

Cane Crushed

Sugar Production

- Sugar Cane (M. Tons) - from Raw

Sugar (M. Tons)

Total Production (M. Tons)

1.359.000 36,095.000

-

28,683.000

-

39.000

36,095.000

28.683.000

Total Bags

(50 Kg. Bags) 706.780

721,900

573,660

Molasses Production

( M. Tons) 10.177.000

17,692.000 14,760.000

4

1.3 OVERVIEW OF RSM COMPLEX.

1.3.1 The RSM sugar mill complex at Ranipur envisages a 8000 TCD capacity

Sugar mill.

1.3.2 The expansion scheme envisages installation of a Milling tandem and balancing

equipment in sections like evaporation and juice heating, crystalliser, bagasse carrier, sugar

drying and storage, holding tanks, filters and continuous pans, material handling etc. The

proposed cogen plant will meet all the heat & power needs of the complex,

1.3.3 At present, no downstream units like distillery or chemical plant are installed. The saved

bagasse and molasses produced are sold in the open market.

S

•

2. POWER DEMAND SUPPLY SITUATION

2.1 Demand Supply. Situation of Power in Pakistan,

2.2 National Policy for Power Co-Generation by Sugar

Industry

2.3 Captive requirement for RSML sugar Complex. •

•

2 POWER DEMAND SUPPLY SITUATION

1. Demand — supply Situation of Power in Pakistan.

Most parts of the country experience severe winter and summer conditions; as a result there is

a wide variation in electricity demand during the year. Furthermore, higher share of residential

sector in total electricity demand make the peak demand more pronounced. During summer and

sowing seasons, the inductive load in the system increases due to tubewells, air conditioners

and other motor operation while in winter, resistive load increases due to heaters. The peak

load hours are generally between 6 PM to 10 PM while load decreases to its minimum between

midnight

The power demand .Supply situation in the Pakistan is presented below in terms of key indicators,

Sr. No. Particulars Value

Installed Generation

Capacity (MW)

a) Hydro. 6461

b) Thermal 4811

1 c) Nuclear 462

d) KESC 1756

e) IPPs 6365

Total 19855

2 T & D Loss 23%

Sectorwise Electricity Distribution (% 1993 -94)

a) Domestic 45.50% b) Commercial 6.90%

3 c) Industrial 26.20% d) Agriculture 11.70% e) Government 12.16% f) Street Lights 0.54%

PER CAPITA ELECTRICITY 4 CONSUMPTION

kWh/Yr/Person

427

7

2. NATIONAL POLICY FOR POWER CO-GENERATION BY SUGAR

INDUSTRY

The Economic Coordination Committee of the Cabinet (ECC) in its meeting held on 6 March

2013, approved 'Framework for Power Cogeneration 2013 Bagasse and Biomass' as an

addendum to the Renewable Energy Policy 2006. This framework shall be effective for all high-

pressure cogeneration projects utilising bagasse and biomass.

Frame Work for Power Co-Generation 2013 (Bagasse / Biomass)

a) The Power Producer shall, under the provisions of the AEDB Act 2010. Renewable Energy

Policy 2006 & this framework approach AEDB. AEDB shall act as the coordinating agency for

• high-pressure (minimum 60 bar) bagasse / biomass based projects. The Power Producer may

establish the project as part of an existing sugar mill or as a separate entity.

b) Upfront tariff for bagasse / biomass based cogeneration projects to be determined by

NEPRA.

c) Tariff shall be on a per unit basis for energy delivered to the grid

d) The Power Producer shall have the option to opt for Upfront tariff.

e) Power Producers shall have the option to offer energy to the respective DISCOs at 11 kv or

132 kv, or to the CPPA at 132 kV, provided that the cost of interconnection, grid station

upgrades, etc. for power evacuation shall be incurred by the respective DISCOs.

f) It shall be mandatory for the Power Purchaser to evacuate all the energy offered to it by the

Power Producer, failing which such plants shall be deemed to have dispatched and sold the

energy to the Power Purchaser. The CPPA shall bill the payment against such unevacuated

energy to the DISCo concerned. However, no liability shall occur to the CPPA / DISCO in case

of a Force Majeure event.

g) Standard bankable EPA & IA documents will be prepared and provided to the Power

Producer by AEDB.

h) AEDB shall issue Letter of Intent (L01) on the basis of standard proposal submitted by the

project proponent. There shall be no requirement for a feasibility or firm costs in case of upfront

8

•

tariff. The Power Producer shall approach NEPRA for issuance of Generation License after

issuance of the LOI.

i) Power Producers will be required to submit Grid Interconnection Studies & Initial

Environmental Examination Reports to relevant agencies / departments. (Copies of the reports

and approvals to be provided to AEDB).

j) AEDB shall issue LOS upon the Power Producer's acceptance of the tariff determined by

NEPRA.

k) All financial and fiscal incentives available to renewable energy projects as per clause 8.6 of

Renewable Energy Policy of 2006 (which are deemed to form part hereof) shall be applicable to

all the power projects implemented in terms hereof and shall be notified under relevant laws

accordingly. For this purpose, power generation units of sugar mills shall be considered a

separate entity. Clause 8.6.1 (ii) of the Renewable Energy Policy 2006 shall be applicable only

to units of electricity sold to the grid.

I) This framework shall be applicable to all bagasse / biomass based projects commissioned

after January 2013.

m) Wheeling shall be an option for Power Producers as allowed in the Renewable Energy Policy

of 200

•

9

RECENT APPROVAL OF RATE

Power generation through sugar mills ( Reference Daily Times dated May 24, 2013)

NEPRA okays Rs 10.50/unit upfront tariff

The National Electric Power Regulatory Authority (NEPRA) on approved Rs 10.50 per unit as the upfront tariff for power generation through sugar mills by utilizing sugarcane bagasse.

According to the NEPRA spokesman, this upfront tariff is approved to encourage sugar mills to generate around 1,500 megawatts (MW) on fast track basis. At present hydel generation is costing Rs 2.50 per unit, generation through natural gas is costing around Rs 5.0 per unit, thermal generation from Rs 14 to Rs 18 per unit and electricity generated through diesel is costing Rs 23 to Rs 28 per unit in the country.

The approval of upfront tariff for sugar mills would encourage sugar mills to plan their investment in this new sector for steering out the country from power crisis faced by the nation during the last decade.

The government has plans to generate around 3,000 MW cheaper electricity through sugarcane bagasse on fast-track basis and investors would be facilitated and encouraged.

Necessary amendments would also be made in the existing co-generation and renewable energy policies to make it simplified and investor-friendly.

In a recent meeting on fast-track development of bagasse-based power generation projects it was informed that the government was utilizing all the resources to end the energy crisis and the power generation from bagasse would be another step to produce electricity from indigenous resources.

Pakistan Sugar Mills Association (PSMA) has been taking interest in the bagasse-based power projects and time and again assured the government to provide full cooperation.

Approval of the upfront tariff was lingering on since a few years. During the last two governments, hectic efforts were made to utilise bagasse for cheaper power generation. Initially 1,500 MW would be completed on fast-track basis. The meeting had also reviewed in detail the existing co-generation and renewable energy policies and discussed various proposals to simplify it in order to get benefit at the earliest. It has been felt necessary that amendments in the existing policies would help alleviate the power crisis in the country. It was decided that the Alternative Energy Development Board (AEDB) would process the bagasse-based projects under renewable energy policy.

10

A committee was also set up to finalise the recommendations in consultation with all the stakeholders so that approval could be taken from the competent forum to start the projects.

AEDB and PSMA have already informed the government that Pakistan was the fifth largest producer of sugarcane with production of 50 million tonnes of sugarcane annually, yielding over 10 million tonnes of bagasse.

Power generation from bagasse would not only reduce the furnace oil import, but even save Rs 33 billion to Rs 49 billion of foreign exchange per annum. The country has 87 sugar mills with a capacity to generate 3,000 MW electricity from bagasse in winter season.

Currently.

Uvifi an in

gener

mills sell their surplus power to government. Layyah Sugar Mills. ty of 9.2M\N, exports 4MW. Hamza Sugar Mills operates 23.6MW

iirganj Energy/Shakarganj Sugar Mills operates a 20MW co-gen .-.;ugar Mills generates 21.8MW, and now plans to increase capacity

.gar Mills (Rahim Yar Khan) generates 18MW and sells 10MW.

Mills generates 27MW and exports 15MW. JDW Sugar Mills

a surplus of 10MVV electricity.

2.3

2.4 CAPTIVE REQUIREMENTS FOR RSM SUGAR COMPLEX :

Following table illustrates captive requirements of RSM sugar complex, with

Expanded capacity of 8000 TCD in the immediate future.

Sr. No. Usage By

RSM at 4000 TCD capacity including cogen plant auxiliaries and colony

Kw

3400

2 After Expansion at 8000 capacity including cogen plant auxiliaries and colony

6000

11

TECHNICAL ANALYSIS

•

•

1.1 introductions

1.2 Land, Site Development & Civil Works

1.3 Equipment &. Miscellaneous Fixed Assets

1.4 Preliminary & Pre-operative Expenses

1.5 Production Schedule

1.6 Requirements of Raw Materials, Utilities and Consumables

1.7 Manpower Requirement: Qualitative and Quantitative

1.8 Project Income

1.9 Project Implementation Schedule

1.10 Socio-Economic Benefits

•

•

Based on the project introduction concept and the select steam power cycle collaborated in the

section A & B, the technical feasibility of the proposed project was evaluated. The following

paragraphs present this analysis.

(iv WORK:,

1.2.1 Land:

The proposed co generation project will be built up within the sugar mill complex, and will not

require any additional purchased land. The required land will be provided to the project by RSM

free or cost. Hence, cost of land is not taken into consideration.

1.2.2 Site Development:

The site development expenses include leveling expenses, fencing, gates and storm (drains; The

estimated cost under these heads works out to Rs. 20 lakh at prevailing rates of material and

labor

1.2.3 Civil Structure: (Refer Annexure 2)

As new boiler and turbine will have to be installed for the cogeneration, project, new structures

will have to be built. In addition, foundations for turbine will have to be built. The estimated

cost of civil structures including extension of the boiler and powerhouses, boiler and turbine

foundations, miscellaneous civil works and Architect's Fees works out to Rs. 10 Crore. The

prevailing rates of labor and material have been, considered in this estimate. The estimate for

foundations is based on the total weight of the equipment and the extent of excavation needed

on site.

14

•

We select the option for RSM Cogeneration Power Plant cycle, the equipment includes bio

Mass / Coal fired boiler and accessories, turbo alternator with controls, condenser and cooling

water systems, water treatment plant, steam, piping required, Biomass / Coal and ash storage

and handling equipment, control and instrumentation, synchronizing equipment and required

civil work. They have been elaborated in following paragraphs:

a) Steam generator and Accessories

Specifications of the steam generator will be extensive, and may be detailed out prior to

procurement.

The outline specifications arrived for the boiler are as follows:

NEW BOILER SPEC.

Capacity 90 T

Working Pressure 65 Bar

Fuel Used Bagasse /Local Coal

Model of firing A.F.B.0

Steam Temp. 490 °C

Stack gas temp. at MCR 140 Deg C

% CO2 with it MCR

CO2 with ()I(

Turn down rang

Variation in steam temp

Peak Generation

Feed water temp. 90 Deg C

Ambient tenT„

Thermal efficiency for bagasse on GCV,

With feed water at 90 deg Celsius

82%

Fuel Wet Mill Bagasse / Biomass / Coal

GCV of bagasse 2500 kcal/kg

Firing for bagasse Rotary Feeders

15

SCOPE OF SUPPLY

This scope of supply for the boiler shall include following

• Adequately designed and fabricated, number and quality of boiler tubes (water wall

tubes and bank( tubes) confirming to IBR 1950 with latest amendments

• Adequately designed and fabricated minimum one steam drum with suitable dish ends,

manhole doors (fitted with cross bars,studs and nuts at each end), suitable internals (to

promote circulation and ensuring steam quality), flanged headers, etc, conforming to

IBR.1‘. - with Latest amendments.

• Adequately designed and fabricated pneumatic spreader stroker, dumping grate type

water cooled membrane wall combustion chamber type furnace to [burn bagasse of

50% moisture with preheated air, preferable with facility to clean furnace chambers

even at MCR. The requisite burning system for coal will also be supplied.

• Manifolds, integral pipe works, mountings and fittings with valves, gauges, chemical

injection valves, etc. The integral pipe work shall consist of blow off bends, high and low

pressure drains, water gauge, piping, water and steam connections to the feed water

regulator, feed pipe work from feed control valve to economizer inlet manifold, feed

pipe work for economizer outlet manifold to boiler steam drum, pressure gauge piping,

soot blower steam supply pipe work, safety valves, escape pipe work, blow down line

and drain line, separate steam line upto common steam header, etc.

collector, air ducting from FD fan to air heater, air heater to air box and

PA I,. teeciing sy-,tern, etc.

• Fuel/ gas ducting upto I.D.Fan inlet

• Air dueling for gas firing system.

• Supporting structure with adequately designed and quality of steel to support all type of

loads imposed by the boiler and associated equipment including suitable galleries and

ladders with gratings or open steel flooring at essential levels complete with hand

railings, curb angles and supports.

• All refractory material including standard and high grade refractory tiles, high grades

cement, special shaped refractory tiles, castable refractory bricks for furnace and high

temperature zones confirming to IS 8 and 6 and high grade insulating material for

16

exposed portion of the boiler steam drum, integral pipe work, gas air ducting along with

wire meshed super coat reinforcements etc

The scope of supply for associated major equipment is listed below:

• Super heater with adequate heating surface and capable of giving a final steam

temperature of maximum 490°C with ± 10% range at MCR complete with

interconnecting pipelines and mountings like a safety valve, drain valves, pressure and

temperature gauges as per 18R or ISO

Induced draught fan for a maximum discharge capacity of 25% higher than theoretical

flue gas quantity and head 30% higher than required at MCR and confirming to IS 1570-

1978, complete with suitable HP TEFC slip ring motor and starter.

• s air fan along with TEFC squirrel cage motor

• Forced draught fan with a minimum discharge capacity of 25% higher than theoretical

air required and heat 30% higher than required at rated MCR along with variable inlet

cane control dampers in the suction and dynamically balanced rotors.

• Steam operated soot blowing equipment with hand controlled units for requisite boiler

sections.

• Blow down arrangement as per BS complete with all piping to the RCC below ground

sump.

• Economizer with suitable heating surface complete with all tubes/coils, support,

dampers, casing, ducting, soot blower, lagging, necessary thermos wells and bypass

arrangement in accordance with BS.

• Double pass cross current flow type air preheater of suitable heating surface complete

with ERW tubes, plates support dampers, casing, ducting, etc.

boiler feed water pumps with adequate capacity and heat along with TEFC squirrel cage

indui.tion motors

• Feed water regulator, thermostatic single element or pneumatic type with by-pass hand

operated control valve as per BS

17

• MS fabricated self supported chimney for individual boiler with adequate size and

height above the ground level as per Pollution Control Board standards along with

supports, helical strakes, ladder and Lightening-arrestor

• Feed water tank of adequate capacity and MS construction fitted requisite inlet

connection and overflow and outlet connection.

• Adequately designed and fabricated deaerator cum storage tank to obtain requisite

temperature rise in the feed water including lift pump and motor starter and

interconnecting piping, valves and fittings.

• LP and HP chemical dosing system including injection pumps, mixing tanks equipped

with stirrers complete with piping and fittings.

• Instrument panel: including steam flow meter, steam pressure meters, CO2 meter,

pressure gauges, multi-point draft gauge outfits, multi-point temperature indicator

outfits, water flow meter, temperature recorders, feed water outlet pressure gauges

and water level indicator.

• Ash cooler

• Pressure parts and water wall

• Silencers for safety valves, vent & Fan suction

• Plane tube economizer

• Tubular air pre-heater

• Variable frequency drive motors for FD/ID fans

• Soot blowing system

• Air compressor for instruments

• Structures and duct work

• Lining and insulation

• Deaerator & controls

• Jacky feed water pump for start-up.

18

AUXILARY EQUIPMENTS AND ERECTED COSTS

Auxiliary equipments include feed water station, steam piping, Bio Mass / Coal and ash to

transfer, storage and handling equipment, ESP, valves and other miscellaneous equipment.

The auxiliary equipment outside the scope of supply for boiler and associated equipment

mainly includes main steam piping from superheater header, onwards, drain/overflow piping of

feed water and deaerator tanks, and pressure reducing. Station and automatic de-superheating

system, MDC etc. All the civil works for boiler and associated equipment foundations and boiler

house, extension building will also be excluded and will be dealt separately in the cost' of civil

works.

The estimated cost: of auxiliary equipment mentioned above works out to Rs. 123.10 lakh;

based on broad specifications and estimation provided by boiler suppliers. It will be necessary • to undertake detailed evaluation during project engineering phase.

The requirement of boiler and feed water qualities have been specified below:

i. Feed water

Hardness Nil

pH at 25°C 8.8 — 9.2

Oxygen 0.01 ppm Max.

Total iron 0.01 ppm Max

Total copper 0.01 ppm Max

Silica 0.1 ppm Max

Conductivity at 25°C 2.0 us/cm max.

Hydrazine residue 0.02 — 0.04

• Boiler water

pH at 25 Deg °C 9.8 — 10.2 max.

Phosphate residue 15 - 25

TDS 500 ppm max.

Specific electrical 1000 us/cm max

conductivity at 250C.

Silica 10 ppm max

To maintain the above very stringent qualities of water, adequately designed water treatment

plant of requisite capacity is necessary. Based on the broad specifications as per above

requirement and budgetary offers from reputed supplier for RO / DM plant.

19

Surface condenser, cooling tower, circulation pumps and & associated equipments be

necessary for recirculation the water in the proposed project so as to minimize fresh water

intake and subsequent costs. The estimated cost of these equipments works out to Rs..60 lakh.

This cost is based on broad specifications and budgetary offers from reputed suppliers. A

detained techno-commercial evaluation will have to be undertaken based on firm and detailed

offers from suppliers.

The material handling: equipment outside the scope of boiler supplier will include conveyors,

trolleys and similar equipment for handling Biomass /Coal from the storage yard to the boiler

house, belt conveyors, etc.

b) Steam turbine, controls and accessories

The main criteria for deciding turbine specifications have been outlined Below:

i. Steam requirement in the complex are at 6 kg/cm2 and 1.5 kg/cm2 for process and will

be taken from different turbines as explained earlier. The balance condensing steam will

be through condensing stages of the Turbines.

ii. Maximizing expansion through turbines for maxi defined requirements of process steam

(saturated)

iii. Flexibility of the turbine to retain reliable power supply in a scenario of fluctuating

steam needs of Sugar process.

iv. Efficient power generation or lower specific steam consumption (kg/kW)

v. Minimize steam flow through Pressure Reducing Station (PRS)

As discussed earlier, fluctuations are envisaged in the specific steam and power requirement of

the mill depending upon the production rate. Also, the steam and power needs vary with

production levels. At any given time, with the possible combination of process heat and power

needs, the cogeneration plant has to be designed to reliably meet power and steam needs of

the complex and retain exportability.

20

In this scenario of widely fluctuating to steam ratios, it requires both a source of additional

power during unit back-outs extreme (though rare). Power to steam ratios and a heat sink to

continue power generation during low steam needs, with these needs, the configuration: of

steam turbines for most satisfactory work was identified as below:

- New extraction cum condensing turbine of 15 MW capacity and

- One straight Condensing turbine of 7.1 MW capacity

These two turbines satisfy the following needs:

i) Supply of varying steam quantities at 6 kg/cm2 and 1.5 kg/cm2

ii) Retaining required captive power supply, by varying the flow through

condensing stage

The steam generation pressure is recommended at 65 kg/cm2, 490 °C.

The desired specifications of the new steam turbine are given

below:

1. Double Extraction cum condensing steam turbine

Type

Generation capacity

Throttle steam conditions

Extraction at (uncontrolled)

Extraction (controlled)

Condensing at

Max throttle steam flow

Min throttle steam flow

Normal throttle steam flow

Max flow through

condensing stage

Minimum flow through

condensing stage

Impulse cum reaction

15000 kW

65 kg/cm'

6 kg/cm2

1.5 kg/cm2

0.09 kg/cm2

78000 kg/hr

20000 kg/hr

75000 kg/hr

58500 kg/hr, in off Season

8000 kg/hr

Normal flow through I

33000 during Season

condensing stage

21

2. Condensing Steam Turbine

Type

Generation 7.1 MW

Throttle Steam C. ( Mons

Back Pressure

Max. Throttle flow

Min. throttle flow

Normal throttle he

Power generati., ih normal flow

The installation of turbine and cooling towers will require the major civil works. The

• approximate weight of the turbine is 8,000 kgs/MW.

The common operational problems with steam turbines are vibration, cycling governor, sticking

steam valves, leaky packing, temperature bow, erosion of blading, loss of power and bearing

failures.

Vibration analysis of steam turbines are performed before shipping and commissioning. Rise in

vibration during operation would be due to loss of alignment or expansions.

Other reasons leading to the above operational problems are wear and tear, dirt in, oil, solids in

steam, leaky valves, improper sequence of operation, accumulation of salt son blades,

inadequate oil flow, etc.

•

22

Steam turbine Generation Auxiliaries

MAJOR SCOPE OF SUPPLY,

1. Steam Turbine; (15 MW, double extraction cum condensing and 7.1 MW Condensing

Turbine.

2. Oil Supply Systems

3. Surface Condensers,

4. Steam Hot Air Ejectors - 2 x 100%

5. Gland Steam condensers

6. Oil Coolers - 2x100%

7. Generator Air Coolers

8. Instrumentation

9 • ',traction Pumps 2x100% (Motor Driven)

10. Generator with Excitation System

11. EOT Crane - 1 No.

12. Balance of Plant Equipment Electrical

SCOPE OF SUPPLY - STEAM TURBINE

1. Steam Turbine

2. Emergency Trip Cum Stop Valve„

3. Blanket Plate for Steam Bowing

4. Turbine Steam Governing Valves

5. Steam Strainer Built into Stop Valve

6. Reducing Gear Box between Turbine and Generator.

7. Coupling and Coupling Guard between Turbine and Gear Box.

8. Coupling and 'coupling Guard between Gear Box and Generator.

9. Manual Barring Device

10. Turning Device, -. Electric (415V,3PH,50,Hz)

11. Solenoid Valve for Remote Tripping

12. Turbine Sole Plates.

13. Foundation Bolt

14. Shaft Grounding Device

15. Mating Flanges for Turbine inlet and Extraction flanges

16. Gland Sealing System (Automatic)

17. Gland Steam Piping form Terminal Point

18. Motive steam piping to steam jet air ejectors from terminal point

19. Motive steam piping to gland steam ejectors from terminal point

20. Extraction steam Piping up to Terminal Points

21. Condenser Hot well Level Control System (Automatic

23

22. Condense Piping (including all valves) up to Terminal point

23. Exhaust hood spray system

24. Special Tools for Maintenance

25. Prime Coat of Paint

26. 0 & M Manuals 6 Copies

27. Turbine Drain Water Piping within TG Block

28. Turbine Insulation (Mineral wool Mattresses)

29. QCNRVs in Extraction Lines (Loose supply)

30. Safety Relief Valve in Controlled Extraction Line

31. Pressure Control Valve in Uncontrolled Extraction line

SCOPE OF SUPPLY - OIL SUPPLY SYSTEM

1. Main oil tank including

• Design & maintenance openings

• Strainer for oil return

• Level indicator

• Level signalization high flow

• Connection of purifier

2. Main oil pump with AC motor (415, 3Ph, 50 Hz)

3. Auxiliary oil pump with AC motor (415, 3Ph, 50 Hz)

4. Emergency oil pump with DC motor (110 V)

5. Jacking oil pump with AC motor (415 V, 3Ph, 50 Hz)

6. Duplex filter for Lube oil

7. Transflow valves for duplex oil filters

8. Oil mist fan with AC motor (415 V, 3Ph, 50Hz)

9. Pressure throttles for bearing

10. Complete lube oil piping (Stainless steel material after filter outlet)

11. Complete control oil piping (Stainless steel material)

12. Overhead lube all tank with complete piping (stainless steel)

13. Oil accumulators

14. Oil centrifuge

15. Governing console consisting of

• Duplex filter for control oil

• main trip solenoid valve

• Electric hydraulic converters

• local gauge board

• Solenoid valve or remote engagement of tripping device

• Solenoid valves for opening / closing of emergency stop valve

• Other hydraulic components

24

SURFACE CONDENSER

• Bellow at condenser neck

• Atm relief valve

• Surge pipe

• Stand pipe

• Isolation valves for instruments & stand pipes

• CW branches counter flanges fasteners & gaskets

• Water expansion relief valves (2 Nos)

• Conceding piece between turbine flange & bellow or condenser dome

• Vent & drain valves

• Sacrificial anodes

• Water box priming pump

• Level gauges

• Level Switches

• Pressure gauges

• Temp gauges

STEAM JET AIR EJECTOR

1. Running ejectors 2*100%

2. Starting ejector 1*100%

3. Inter/after condensers 2*100%

4. Inter connecting piping

5. Steam & air vapor suction headers

6. Sliding plates & anchor bolts

7. Isolations steam supply header & individual ejector elements lines

8. Isolation valves on cooling water Line

9. Water expansion relief vales (2 Nos)

10. Stand pipe

11. Isolation valves for instrument & stand pipes.

12. Cooling water inlet branches counter flanges, fasteners & gaskets

13. Vent & drain valves

14. Silencer for starting ejectors (1 No)

15. Strainer - (3 Nos)

16. Pressure gauges

17. Temp gauges

18. Air flow meter

GLAND STEAM CONDENSER

1. Steam jet ejectors 2X 100%

2. Water expansion relief Valves -1 No.

3. Stand Pipe -1 No

4. Isolation Valves for instruments

5. Vent & Drain Valves

6. Counter flanges for inlet/outlet

7. Drain collecting tank

8. Foundation Bolts'

9. Sole Plates & Anchor Bolts

10. Level Gauges

11. Level Switches

12. Pressure Gauges

13. Temp Gauges

OIL COOLER -2*100%

1. Changeover Valves

2. Isolation Valves on CW side

3. Vent & Drain Valves

4. Counter Flanges on CW side

5. Sole Plates & Anchor Bolts

6. Pressure Gauges

7. Temp. Gauges

Generator Air Coolers

1. CW side inlet/outlet valves

2. CW in/outlet Headers

3. Isolation Valves on Each Header

4. Sole Plates & Anchor Bolts

5. Pressure Gauges

6. Temp Gauges

SCOPE OF SUPPLY -INSTRUMENTATION

• Electronic Governor (WOODWARD 505E)

Turbine Speed

Load

Controlled Extraction Pressure

26

• Programmable Logic Controls with MMI & Programming station

• PLC based Turbine Auxiliaries Interlock and Protections' for the following drives:

- Main Oil Pump

- Auxiliary Oil Pump

- Emergency Lube Oil Pump

- Oil Vapor Extraction Fan

- Turbine Gear

- Condense Extraction Pumps

• Bently Nevade Make. Dual Channel Turbine Shaft Vibration and Axial displacement

monitoring system (TSI rack) which includes:

- Turbines Front Bearing

- Turbine Rear Bearing

- Generator Front Bearing

- Generator Rear Bearing

Gearbox High Speed Shaft

- Gear box Low speed side bearing

- Turbine Axial displacement

• Turbine Control Panel Housing the following

- Electronic governor (Wood Ward 505E)

TSI monitors

- Bearing Metal Temperatures Monitor for Turbine/Generator

- Push Bottoms and Lamps for Auxiliaries Start/Stop

GENERATOR AND AUXILIARIES

1. Generator with stator, rotor, built - in RTDs, bearings and foundation frame, space

heater and pit-mounted Air-Water heat exchangers.

2. Brushless excitation system including main exciter with tow slip rings for

conventional rotor earth fault relay and exciter (PMG)

3. Phase segregated Al. Bus bars with Al. enclosure (15 rn on phase side +6M on

neutral side) with Cts, Pts, La & SP equipment's.

4. Neutral Grounding resistor (NGR)

5. CO2 fire extinguishing equipment for generator.

6. Generator control, Relay, Metering & Synchronizing Panel.

7. Control cables for generator and its auxiliaries (assuming a cabling distance between

Control room and Generator as 100M)

27

BALANCE OF PLANT — ELECTRICAL

1. 11 KV SW Gear

2. 415 V SW Gear (STG MMC)

3. Station Battery & Battery Changer

4. Power & Control Cables

5. Earthling Material

6. Lightning protection material

7. DC Distribution Board

8. Cable trays and accessories

9. Safety equipment like Rubber mats, Danger Boards etc.

10. UPS

Erected Cost

The total erected cost of the turbines including generators, controls and accessories works out

to Rs. 20 c,,;, ,• gives details the cost estimation.

c) Electrical Power Evacuation & Steam Management System

The return on investment for any cogeneration project depends on the actual power evacuated

from the turbojet and supplied to the process or utility.

A major reason, for lower returns of on cogeneration projects is the improper management of

power evacuation, leading to loss of cogenerated power and rise of steam flow through PRS.

The proposed cogeneration plant has to operate in a scenario of continuously varying steam

and power demands from the sugar process. Since the project opts to supply all the captive

power, it will have to continuously export a minimum amount to maintain stability of the

synchronizing mechanism

It is hence felt essential to build a power evacuation system, which broadly maintains the

following requirements of the cogeneration plant:

1. In conditions of abnormally high steam demand, the system will permit steam flow

through PRS to satisfy process needs. The system will need to have a closed loop

control with pressure and temperature transmitters at all major steam using

equipment.

28

2. The system: will need to maintain a minimum power supply to grid. This will be

achieved by increasing steam flow through condenser. The system will be

programmed for a rate of rise or fall in grid power supply and will accordingly

regulate steam flow through the condensing sections.

3. In cases of abnormal steam flow and to maintain reliable power availability, the

system may need to extract more steam at 6kg/cm2 and reduce condensing flow as

per process needs. This intelligence will be built into the system.

4. The distribution of boiler load will be monitored by the system by continuously

displaying end analyzing flue gas temperatures and CO2 percentages, Uniform

retaining of loading and tripping under loaded boilers is required to maintain overall

steam generation efficiency. This can be built by automatically varying the fuel

feeder or by annunciation.

5. The system will also need to monitor the plant safety. Monitoring of steam

generation pressure. Pressure and temperature of turbine inlets power factor at

generators, loading of generator. Temperatures at critical bearings etc will be

specified. Programs will be built in to ensure that specified limits are not crossed and

communication at earlier levels are done.

6. The power evacuation system will be a distributed control system with a common

control centre. Hence, from the common control centre the cogeneration plant

operator can control, monitor and provide reliable steam and power needs to the

different processes and feed to the grid.

7. This PLC based system will generate a shift wise moving average record of all

relevant parameter of the cogeneration plant Those parameter will include steam

generation quantity pressure and temperature from the boiler, to the turbojet and

from each extraction, power evacuated from the turbojet and its distribution

analysis, boiler operation characteristics like flue gas temperatures and gas analysis,

power drawn from grid and its distribution etc. A programmed is being built to

generate the cogeneration plant efficiency based on these parameters per shift. This

programmed will calculate the efficiency, compare with cumulative and previous

best and highlight major variations. This efficiency would mean, the ratio of power

evacuated to fuel supplied to the

Cogeneration plant, all in equivalent units.

8. The power evacuation system will have annunciation for:

29

Large variations in steam pressures and temperatures, at generation, turbine inlet,

extractions and condensing stages and at all critical points supplying to process.

- Sudden tripping of any process electrical load, in predetermined blocks of MCCs,

with indication of process stoppage or voltage drop.

Large variations in power factor, voltage and power from the generator.

- Rise in temperatures of critical bearings.

- Over/under loading of boiler.

- Failure of any field sensor.

- Low/high water levels of steam generator and large variation in flue gas analysis and

temperatures at all stages including before and after economizer, and before and

after superheater and before and after air pre-heater etc.

• The major drawbacks of having a fairly advanced control system are the reliability of season,

facilities calibration, availability of environment of sugar mills. The areas of reliability and

calibration facilities will be needed to be included in the scope of the control system suppler.

The project will need to employ or train engineers in maintenance of instrumentation and

sensors

The control room and the sensors will need to be enclosed in Specified environment for which

required HVAC arrangements will be made by the project

Every percentage drop in power evacuated is equivalent to Rs. 1200 per hour for the select

power cycle. This signifies the importance of a detailed and advanced control system without

considering decrease of occurrence of grid supply to process or non satisfaction of process heat

load.

The estimated cost for grid paralleling switchyard, MCC's and interfacing equipment with above

basis works out to Rs 110 lakh, based on budgetary offers for major components of equipment.

• d) Synchronizing Panel with Protection Relays

Synchronizing panel with protection relays will have following major components:

• Quadrature droop CT with AVR for paralleling electrical governer.

managed generator

• Auto PF controller

• Auto and manual synchronizer

• Import export meter

• Protections for generator including differential generator, differential umt

transformer, starter and rotary earth fault, over voltage, loss of excitation,

under voltage, reverse power, minimum impedance, phase unbalance,

over load alarm and under frequency

30

• Protection relays including non directional and directional relays,

synchro-check relays on Wapda and generator breakers, reverse power

relay, U /F relay, lock out relay etc.

e) ELECTRICAL EVACUATION PACKAGE

• HT cabling from generator panel to transformers.

• 8 MVA x 1, 11/5.5 KV step down transformer and auxiliaries.

• MT cabling from step down transformer to existing Sugar Mills Panel.

• Synchronizing panel with all auxiliaries and interconnection

• Required circuit breaker f isolators.

• Auto P.T. controller.

• Export - import meter

• Required CTs end PT.s

• HT switchyard

• Tie-line upto Wapda sub-strain.

f) Other Miscellaneous Fixed Assets (Please refer Annexure 5)

These include office furniture and fixtures, yard and colony power distribution, water storage

and distribution costs, miscellaneous tools and spares, make up water evaporator, firefighting

equipment, material handling equipment like weigh-bridge, crane and hoists, etc., workshop

and lab equipment and vehicles. The estimated costs of these items and work out to Rs. 55Iakh.

Cost of 132 KV tie-line from the proposed cogeneration plant upto HSEB sub-station, located at

around 8 kms., is estimated at Rs. 150 lakh (50% of the total cost - Refer Annexure-5).

f) Standards

All procurement to be made for the cogeneration plant will be as per applicable [ISI, ISO/ IBR /

ASME/ DIN standards. Some of the specific standards to be followed are:

- Boiler efficiency will be assessed by BS 845: Part 2:1987

- Boiler design will be certified as per prevailing IBR (Indian Boiler Regulation Act) norms

- All steam piping will be designed as per corresponding steam pressure as per ASTM A

59-68

- All water piping will be as per schedule 40 and IS 1239: 1968 and B.S. 1387 : 1967

31

- All flanges will be as per relevant pressure table of British standard pipe flanges (B

10: 1962) or DIN cast steel flange standard

- Generator duties will be specified as per IS: 4722/B.S. 2613

- Generator insulation will be of Class F

- Generator temperatures rise will be limited as per IS 4722

- NEMA standards will be applicable to turbine governors

- Turbines will be certified by manufactures for thermodynamic performance as per the

ASME performance test code 6

• - All instrumentation sensors will be as per IP-Ei5 and IS 2148

- All Vendors will be required to list Suppliers of bought out items With Standards

adhered and equivalent standards.

- The manufacturing of boilers will be supervised by stage wise inspection from

identification of plates, metallurgical testing, x-ray testing of welds hydrostatic pressure

and steam generated tests.

- All valves and fittings will be procured with valid IBR certification.

- All electrical cabling, switch gear and protection devices will be marked by ISI code

approvals, Synchronisation equipment will be certified by HSEB and electrical inspector

Office. • - Representatives from M/s. RSM should preferably witness the dry run, hot air run and

load test of steam turbine and generator.

- Turboset will be procured with performance curves at various loadings for steam

turbines and generations.

- Adherence to above standards during procurement and acceptance will decrease

teething problems during commissioning and extend the plant life cycle.

g) Safety and Ecology

The design .of safety into the project is desirous for extending life cycle, improving returns on

investment and, decreasing unprecedented shutdowns.

By adhering to established standards as above and undertaking required inspections, the safety

of plant and equipment can be built into the project For pressurized equipments like boilers,

deareators and turbines, annual hydrostatic pressure inspection will be planned, Continuous

monitoring of flue gas temperatures will indicate the need of fire/water side cleaning.

A R.O. plant and softening plant are included in the project cost to decrease or avoid water side

scaling and deposition on turbine blades. All transformers will be certified by the electrical

inspector and annual inspection/filtration of cooling oil is planned.

The proposed power evacuation system will play a pivotal monitoring power and heat

parameters to prevent any undesired excesses.

Procurement of safety devices like welders goggles, helmets, hand gloves, ear-muffs etc. are

planned. On commissioning, of the cogeneration plant is also planned to conduct a safety

awareness programme for operators by an experienced professional firm.

Major undesired exposures the cogeneration plant Operator will be exposed to are high sound

levels of turbine steam pressure and Temperature and high voltage (11,000/415 volts).

Adequate thermal electrical insulation and sound proof barriers are being built into the project.

Any project involving power generation raises environment and ecological concern. However,

this additional cogeneration project assists in directly reducing associated pollution and

warming follows of power generation.

During the power plant operation bagasse is the principal source of fuel. The ash content is at

2% . The fly-ash generated will be collected in Dust Collector or electrostatic precipitators.

Appropriate designs and emissions levels are being discussed with boiler manufactures.

PR a ,RJ VE EXPLiNSES

The preliminary expenses include preparation of DPR, leg.al charges and other expenses for the

cogeneration w- oject costs and they cumulate to Rs. 15 lakh.

33

The pre-operative expenses include establishment expenses, rent rates and taxes, travelling

expenses, start up expenses, project management expenses of RSM, insurance charges during

construction period, interest charges on loans during construction period, mortgage expenses

and stamp duty bankers charges, project development expenses, etc. While Annexure - 6 gives

detailed break up, they cumulate to Rs. 224.25 lakh,

The cogent- r .)n t will operate 24 hrs / day and for about 310 days per year. The season

days have been assumed at 130 during which the project will operate on 70% Biomas / Coal and

30% on the II • During the season, the captive steam and power requirements of

RSML will br, mei the exportable surplus will be sold to SEPCO grid. The off season days

have been assumed at 180, during which the plant will operate on saved and stored bagasse &

coal / biomass. The entire power generated in the off season, excluding the captive

requirement I- or the cogen plant, will be sold to the SEPCO grid.

The plant will generate 14 MW of exportable surplus during the season, equivalent to 43.68

million KWH after applying a derating factor of 0.90. The plant will also generate 14 MW of

exportable power during the off season, equivalent to 64.80 million KWH after applying a

derating factor of 0.95. Thus , for seasonal and off-seasonal operations: the net power export

will be 108.48 million units, at maximum utilization levels

Though, the options for supply to other unit of the promoters or other credible customers were

discussed in previous chapters, for the purpose of evaluating feasibility, it is assumed that all

exportable power is sold to SEPCO.

fi & CO NSli LES

1.6.1 Raw Materials

Biomass / Coal wc. be required as 70% of the Fuel. This would be bought from the open

market throtT, rn contracts. Bagasse would run as 30% of the fuel throughout the year.

For economic analysis, cost of bagasse used for generation of exportable surplus in season and

off-season periods has been considered as the raw material cost Since the entire saved bagasse

or steam consumption for new condensing stage of turbine will be for export power, both

during season and off-season, the respective quantities of bagasse are charged to the

cogeneration project as raw material costs. During season about 511,H will be used for export

power generation. The cost of bagasse is taken at Rs. 2,000 to Rs. 2,500 per tonne.

34

1.6.2 Consumables & Utilities

The consumables like lubricants, chemicals, etc, will be required to operate and maintain the

equipment in the proposed project Based on the existing requirement at JCSML• complex and

proposed additional requirements for water treatment, etc" the estimated annual Costs of

consumables work out to Rs. 12.00 lakh at 100% utilization, Water is the only utility required for

operation of the proposed project. The estimated requirement for boiler drum water make up,

cooling tower make up and other miscellaneous requirements, etc, work out to 1200 KL per

day. The annual cost of water supply to the project is assumed at Rs. 10.26 lakh at full capacity

utilization of the plant.

7 F.QUIRMENTS : QUAL TA IVE & QUAN1 ITATIVE

I 1.7.1 17.1 Following table illustrates the requirements of additional manpower indirect,

administration and other categories alongwith their skills and experience required.

Sr. Category Nos. Nature of duty

No.

A. Direct Labour

A.1 Highly skilled & A/B Category Operation of boiler, turbine

Skilled workers. 54 and water treatment plant.

A.2 Semi skilled

10 Operation of water/oil pumps . A.3 unskilled 30 Assistance For Boiler/Turbine

Operation /bagasse handling.

A.4 Electricians 02 Eletrical maintenance

A.5 Fitter 02 Mechanical maintenance

A.6 Supervisors 02 Power plant operartion management.

A.7 Chief Electrical Engineer 01 Incharge — Power plant Electrical

Maintenance.

A.8 Chief Mechanical Engineer 01 Incharge — Power plant mechanical

35

Maintenance.

A.9 Dy. Chief Engineers 02 Supervise Power plant operations.

A.10 Instrument Engineer 01 Supervise Power plant Instrumentation

A.11 Shift Engineer 03

A.12 Store Clerks 03

Total 90

B. Administrative/selling Manpower

B.1 Dy. CEO or power 01 Managing the entire operation.

Plant manager.

B.2 Commericial Officer 01 liason with HSEB / Wheeled Customers

B.3 Accountant/peon/clerical 09 Administration work of the power plant

B.4 Purchase and Store Clerk 02 Purchase and storage.

Total 13

Note :

It is recommended that present admin staff be given additional responsibility of the proposed

cogen plant to rationalise manpower needs. It is possible to reduce the manpower substantially

by alloting common responsibilities of all the utilities.

1.7.2 It is seen that a total of 103 personnel will be required for operation of the power plant.

The skilled operators I electrical engineers I shift supervisors must have necessary

experience and adequate qualifications. The power plant manager must have at least

15-20 years similar experience and requisite qualifications.

36

The project income will be from sale of exportable surplus to SEPCO at Rs. 10 I unit purchase

price at the year of commissioning and. further escalation of 5 % every year. The project

income at 90 % utilization of the cogen plant works out to Rs. 108.48 crore.

'DULE

The project implementation schedule has been worked out at 15 months from closing of

finances. Based on the project start date of Aug, 2012, it will get commissioned in November, • 2013.

A detailed PERT/CPM network will be prepared on a computer programme by listing down all

the activities and s: ;H activities, developing logics, evaluating the CPM and monitoring the

same, for -.ring.

1.10.1 Introduction

RSML Holds pioneering status for several land marks in the sugar sector, for efficiency of

recovery and constantly sustaining profitability.

RSML belonging to the Corporate sector, is a professionally managed company. All senior

decision makers and line managers possess requisite professional qualification and experience.

• The delegation of authorities and responsibilities is scientifically planned.

This additional cogeneration project will pave the way for RSM to grow and survive in the highly

volatile and fiercely competitive future. This will not only improve their individual profitability

but also assist in facing with the shortage syndrome in

the power sector. The captioned project will have some of the following major socio-economic

benefits.

1.10.2 A Multiplier Effect

Successful implementation and operation of this cogeneration project will give impetus to most

of the sugar mills not only in Sindh but also throughout Pakistan.

37

•

1.10.3 Energy Efficiency Culture

The energy efficiency improvement in sugar mills and consequent additional saving in steam

are electricity consumption go hand in hand for improving power production, revenue and

profitability of the proposed project.

This in a way will automatically enforce the much wanted energy efficiency culture in sugar

industries.

1.10.4 Employment Potential

The captioned project will envisage employment for about 103 personnel of various skills and

categories. Apart from this, all associated projects for efficiency improvement, fuel collection

storage, densification and substitution, etc. will give enormous potential for employment in the

rural masses adjoining the sugar mill location and improve their economic status.

1.10.5 Integration

The proposed cogeneration project will really help integration of RSML sugar mill operations

and will enable the management instill long term viability and profitability.

•

Cost of Project and Debt Requirement

750.000 Total Project Cost

Cost of Power House Turbines,

Machinery, Instruments &

Equipments

Cost of Boiler, Pipe Line, Pumps

and Various Items

Pre operating Expenses

(Installation, Drawing &

Consultancy)

Civil &Foundation Works /

Construction of Power Plant

Working Capital Requirement

Cost of Coal of 2 Months

Descriptions

Applied for Project Financing / Debt Requirement

Equity / Amount Paid by Own Sources

240.000

230.000

80.000

100.000

100.000

Total Amount in

Million Rupees

_ 491.285

258.715

C

Miregoalwi

Manual Summary Rotup Baseline Manual Summary Progress Start-only C Deadline Finish-only Slippage Late ANNIMMINK.

Task Rolled Up Progress MilliMMINIMIIIMMOISI Inactive Task

Milestone ♦ Split Inactive.Milestone

Summary Illimsomm....wil External Tasks Inactive Summary

Rolled Up Task •••••••••eimoid Protect Summary 1/4,--•-- J Manual Task Rolled Up Milestone 0 Group By Summary .......•..........•• Duration-only

4

?4

27

28

!Task Name Duration I Start Finish Jul '12 1_ Sep '12 Nov '12 Jan '13 Mar '13 May '13 Jul '13 i Sep '13 Nov '13 Jan '14 Mar '14 May '14__ Jul '14 Sep '14 20MW Co-generation Project 628 days Thu Mon'

10/25/12 7/14/14

MECHANICAL WORK 272 days Mon Sat 5/24/14

8/26/13

ELECTRICAL WORK

90 days Sun 3/30/14 Fri 6/27/14

30 days Sun 6/15/14 Mon 7/14/14

itt7. 1.1P

FEASIBILITY STUDY OF

PROJECT

DESIGNING OF POWER

PLANT

CIVIL DESIGN

CIVIL WORK

PURCHASE OF BOUGHT OUT ITEMS

30 days Thu 10/25/12 Fri 11/23/12

100 days Wed 11/21/12 Thu 2/28/13

45 days Fri 1/25/13 Sun 3/10/13

228 days Fri 2/15/13 Mon 9/30/1

272 days Mon 3/4/13 Sat

11/30/13

98 days Sun 3/23/14 Sat 6/28/14

INSTRUMENTATION WORK

COMMISSIONING

xvii. Information regarding Plant Characteristics

1 Generation Voltage. 11000 - Volt, 3 Phase

2 Generation Frequency. 50 Hz

3 Generation Power Factor. 0.85 To 0.95 Range Adjustable.)

4 Automatic generation control . Through AVR Control System Make

BASALER USA.

5 Ramping Rate 50 Kw /Per Sacond Through Wood

ward - 505 & allied Controls.

(Ranges Adjustable.)

6 Alternative Fuel. BIO MASS

7 Auxiliary Consumption. 1.9 Mw.

8 Time Required to Synchronize to Grid 4 Hours from Cold Start.

•

xviliinformation regarding Control , Metering , Instrumentation and Protection.

1 Control System is completely based on, DCS/ PIC Digital Control Logics for Boiler, -

Turbines, Generators and for Synchronizing and load Shearing Controls ,Using -

Siemens Siematic S-7 and- ProfoBus system.

2 Generators Voltage & Exciter is Controlled by Basler (USA) Digital Avr System .

3 Turbines speed and load shearing is controlled by Wood word-505,control system.

• 4 System have Also Semi Automatic and Manual controls for Start-up and for -

Emergency and for Test mood.

5 All Related power Drives Ac, Motors have M/s ABB Proven, VFDs control system-

for Soft start and to gain controlled speed as per system requirements.

6 All Metering is Digital / Analog type.

7 All Protections for Generators,Turbines and Boiler has Redundant Cascade Duplicate

type of controls.

IP

•

Ranipur Sugar Mills (Pvt.) Limited

Training & Development

Ranipur Sugar Mills (Pvt.) Limited provides training to educated young

.people,,of adjacent populationsin_various fields es shown in below,tabla:_ „

Sr. No. Qualification Fields of Training

1 B.E./DAE Apprentice Engineer Trainee Engineer

2 B.Sc. Apprentice Chemist Trainee Chemist

3 Matriculate Trainee Fitter Trainee Welder Trainee Electrician Trainee Lab. Analyst Trainee Plumber Trainee Carpenter

Cost of Project and Debt Requirement

Total Amount in

Million Rupees Descriptions

Cost of Power House Turbines,

Machinery, Instruments &

Equipments

Cost of Boiler, Pipe Line, Pumps

and Various Items

Pre operating Expenses

(Installation, Drawing &

Consultancy)

Civil &Foundation Works /

Construction of Power Plant

Working Capital Requirement

Cost of Biomass for 2 Months

240.000

230.000

80.000

100.000

100.000

Total Project Cost 750.000

Equity / Amount Paid by Own Sources

Applied for Project Financing / Debt Requirement

225.000

525.000

Ranipur Sugar Mills (Pvt.) Ltd.

21MW COGEN PROJECT

Feasibility Report

•

•

1. INTRODUCTION

1.1 Background

1.2 Background of RSM performance.

1.3 Overview of Ranipur Sugar Mill Complex

•

2

1. Introduction and General information

1.1 BACKGROUND

The Ranipur sugar Mills (Pvt.) Limited (RSM), was established in the year1977, Crushing Capacity of

2300 TCD with the name of Consolidated Sugar Mills Limited and was closed in 1992.

Present Management accrues the mill in auction in 1998 and that time the crushing capacity was

3000 TCD. The Mill is Located near City Ranipur in Sindh Province.

In view of sufficient cane availability in the near future, RSM proposes to expand its capacity upto

8000 TCD in the immediate future. The expanded Capacity is expected to be achieved by start of

2014-2015 crushing season.

In order to take advantage of incentives offered by the Government of Pakistan and to integrate the

expansion project for future mill operations, RSM also proposes to implement a cogeneration power

project to enable export around 14-15 MW of power to National grid.

The Cogen project envisages installation of high pressure boiler, matching double

Extraction cum condensing TG set, Condensing TG set, auxiliary equipment and all required grid

paralleling / interfacing equipment.

The cogeneration project with expanded mill capacity will make optimum use of available bagasse

during the season operation. During the off season operations of the power Plants, saved bagasse

will be used to ensure optimum export and number of operating days. Other agro waste fuels or

purchased bagasse and Rice Husk from other mills will be additional option available with RSM to

increase the plant operation in the off season.

Sindh is famous for its high quality rice and has a large population of rice mills. Several Process

industries use rice husk as a fuel in AFBC Boiler. Rice husk is available at RSM through dealers in

Sindh. RSM also has a sufficient land in the mill premises and vicinity to store rice husk.

In addition Biomas will be an additional option alongwith bagasse in new Boiler to safe sufficient

bagasse to operate power plant for 310 days in a year to safe bagasse and Biomass during off

season,

3

It is also intended to achieve maximum energy savings in the existing and future operations (over

and above significant energy and bagasse savings already achieved by RSM), by introducing

necessary techniques and equipment. This will enable RSM to optimise exportable surplus from the

project.

1.2 BACKDROP ON RS IVIAN CI

1.2.1 Following table illustrates physical performance of RSM for

Operational Results For the Seasons

Particulars 2012-2013 2011-2012 2010-2011

Season Starting

Date 28-Nov-2012 20-Nov-2011 26-Nov-2010

Season Closing

Date 31-Mar-2013 28-Mar-2012 28-Mar-2011

Duration 124 130 123

Cane Crushed (M. Tons) 381,679.059 400,700.233 331,119.387

(Maunds) 9,541,961 10,017,509 8,277,985

Recovery Sugar 9.265% 9.008% 8.663%

Recovery

Molasses 4.238% 4.415% 4.459%

Sugar Production

- Sugar Cane (M. Tons) 35,339.000 36,095.000 28,683.000

- from Raw

Sugar (M. Tons)

Total

Production (M. Tons) 35,339.000 36,095.000 28,683.000

Total Bags (50 Kg. Bags) 706,780 721,900 573,660

Molasses

Production (M. Tons) 16,177.000 17,692.000 14,760.000

4

1.3 OVERVIEt OF RSM P

1.3.1 The RSM sugar mill complex at Ranipur envisages a 8000 TCD capacity Sugar mill.

1.3.2 The expansion scheme envisages installation of a Milling tandem and balancing equipment in

sections like evaporation and juice heating, crystalliser, bagasse carrier, sugar drying and storage,

holding tanks, filters and continuous pans, material handling etc. The proposed cogen plant will

meet all the heat & power needs of the complex,

1.3.3 At present, no downstream units like distillery or chemical plant are installed. The saved

bagasse and molasses produced are sold in the open market.

S

I

5

2. POWER DEMAND SUPPLY SITUATION

• 2.1 Demand Supply Situation of Power in Pakistan.

2.2 National Policy for Power Co-Generation by Sugar Industry

2.3 Captive requirement for RSML sugar Complex.

•

6

2. POWER DEMAND SUPPLY SITUATION

2.1 Demand - supply Situation of off Power in Pakistan.

Most parts of the country experience severe winter and summer conditions; as a result there is a

wide variation in electricity demand during the year. Furthermore, higher share of residential sector

in total electricity demand make the peak demand more pronounced. During summer and sowing

seasons, the inductive load in the system increases due to tubewells, air conditioners and other

motor operation while in winter, resistive load increases due to heaters. The peak load hours are

generally between 6 PM to 10 PM while load decreases to its minimum between midnight

The power demand .Supply situation in the Pakistan is presented below in terms of key indicators,

Sr. No. Particulars Value

Installed Generation

Capacity (MW)

a) Hydro. 6461

b) Thermal 4811

1 c) Nuclear 462

d) KESC 1756

e) IPPs 6365

Total 19855

2 T & D Loss 23%

Sectorwise Electricity

Distribution (% 1993 -94)

a) Domestic 45.50%

3 b) Commercial

c) Industrial

6.90%

26.20%

d) Agriculture 11.70%

e) Government 12.16%

f) Street Lights 0.54%

PER CAPITA ELECTRICITY 427

4 CONSUMPTION

kWh/Yr/Person

7

2.2 National Policy for Power Co-Generation by Sugar Industry

The Economic Coordination Committee of the Cabinet (ECC) in its meeting held on 6 March 2013,

approved 'Framework for Power Cogeneration 2013 Bagasse and Biomass' as an addendum to the

Renewable Energy Policy 2006. This framework shall be effective for all high-pressure cogeneration

projects utilising bagasse and biomass.

Frame Work for Power Co-Generation 2013 (Bagasse / Biomass)

a) The Power Producer shall, under the provisions of the AEDB Act 2010. Renewable Energy Policy

2006 & this framework approach AEDB. AEDB shall act as the coordinating agency for high-pressure

(minimum 60 bar) bagasse / biomass based projects. The Power Producer may establish the project

as part of an existing sugar mill or as a separate entity.

b) Upfront tariff for bagasse / biomass based cogeneration projects to be determined by NEPRA.

c) Tariff shall be on a per unit basis for energy delivered to the grid

d) The Power Producer shall have the option to opt for Upfront tariff.

e) Power Producers shall have the option to offer energy to the respective DISCOs at 11 kv or 132 kv,

or to the CPPA at 132 kV, provided that the cost of interconnection, grid station upgrades, etc. for

power evacuation shall be incurred by the respective DISCOs.

f) It shall be mandatory for the Power Purchaser to evacuate all the energy offered to it by the

Power Producer, failing which such plants shall be deemed to have dispatched and sold the energy

to the Power Purchaser. The CPPA shall bill the payment against such unevacuated energy to the

DISCo concerned. However, no liability shall occur to the CPPA / DISCO in case of a Force Majeure

event.

g) Standard bankable EPA & IA documents will be prepared and provided to the Power Producer by

AEDB.

h) AEDB shall issue Letter of Intent (L01) on the basis of standard proposal submitted by the project

proponent. There shall be no requirement for a feasibility or firm costs in case of upfront tariff. The

Power Producer shall approach NEPRA for issuance of Generation License after issuance of the LOI.

8

i) Power Producers will be required to submit Grid Interconnection Studies & Initial Environmental

Examination Reports to relevant agencies / departments. (Copies of the reports and approvals to be

provided to AEDB).

j) AEDB shall issue LOS upon the Power Producer's acceptance of the tariff determined by NEPRA.

k) All financial and fiscal incentives available to renewable energy projects as per clause 8.6 of

Renewable Energy Policy of 2006 (which are deemed to form part hereof) shall be applicable to all

the power projects implemented in terms hereof and shall be notified under relevant laws

accordingly. For this purpose, power generation units of sugar mills shall be considered a separate

entity. Clause 8.6.1 (ii) of the Renewable Energy Policy 2006 shall be applicable only to units of

electricity sold to the grid.

S

I) This framework shall be applicable to all bagasse / biomass based projects commissioned after

January 2013.

m) Wheeling shall be an option for Power Producers as allowed in the Renewable Energy Policy of

200

•

9

RECENT APPROVAL OF RATE

Power generation through sugar mills ( Reference Daily Times dated May 24, 2013)

NEPRA okays Rs 10.50/unit upfront tariff

The National Electric Power Regulatory Authority (NEPRA) on approved Rs 10.50 per unit as the

upfront tariff for power generation through sugar mills by utilizing sugarcane bagasse.

According to the NEPRA spokesman, this upfront tariff is approved to encourage sugar mills to

generate around 1,500 megawatts (MW) on fast track basis.

At present hydel generation is costing Rs 2.50 per unit, generation through natural gas is costing

around Rs 5.0 per unit, thermal generation from Rs 14 to Rs 18 per unit and electricity generated

through diesel is costing Rs 23 to Rs 28 per unit in the country.

The approval of upfront tariff for sugar mills would encourage sugar mills to plan their investment in

this new sector for steering out the country from power crisis faced by the nation during the last

decade.

The government has plans to generate around 3,000 MW cheaper electricity through sugarcane

bagasse on fast-track basis and investors would be facilitated and encouraged.

Necessary amendments would also be made in the existing co-generation and renewable energy

policies to make it simplified and investor-friendly.

In a recent meeting on fast-track development of bagasse-based power generation projects it was

informed that the government was utilizing all the resources to end the energy crisis and the power

generation from bagasse would be another step to produce electricity from indigenous resources.

Pakistan Sugar Mills Association (PSMA) has been taking interest in the bagasse-based power

projects and time and again assured the government to provide full cooperation.

Approval of the upfront tariff was lingering on since a few years. During the last two governments,

hectic efforts were made to utilise bagasse for cheaper power generation. Initially 1,500 MW would

be completed on fast-track basis. The meeting had also reviewed in detail the existing co-generation

and renewable energy policies and discussed various proposals to simplify it in order to get benefit

at the earliest.

It has been felt necessary that amendments in the existing policies would help alleviate the power

crisis in the country. It was decided that the Alternative Energy Development Board (AEDB) would

process the bagasse-based projects under renewable energy policy.

A committee was also set up to finalise the recommendations in consultation with all the

stakeholders so that approval could be taken from the competent forum to start the projects.

AEDB and PSMA have already informed the government that Pakistan was the fifth largest producer

of sugarcane with production of 50 million tonnes of sugarcane annually, yielding over 10 million

tonnes of bagasse.

10

Power generation from bagasse would not only reduce the furnace oil import, but even save Rs 33

billion to Rs 49 billion of foreign exchange per annum. The country has 87 sugar mills with a capacity

to generate 3,000 MW electricity from bagasse in winter season.

Currently, seven sugar mills sell their surplus power to government. Layyah Sugar Mills, with an

installed capacity of 9.2MW, exports 4MW. Hamza Sugar Mills operates 23.6MW plant, whereas

Shakarganj Energy/Shakarganj Sugar Mills operates a 20MW co-gen power plant. Al-Noor Sugar Mills

generates 21.8MW, and now plans to increase capacity to 36.8MW. RYK Sugar Mills (Rahim Yar Khan)

generates 18MW and sells 10MW. Likewise, Al-Moiz Sugar Mills generates 27MW and exports

15MW. JDW Sugar Mills generates 22MW, with a surplus of 10MW electricity.

2.3 CAPTIVE REQUIREMENTS FC R RSM SUGAR COMPLEX

Following table illustrates captive requirements of RSM sugar complex, with

Expanded capacity of 8000 TCD in the immediate future.

Sr. No. Usage By kW

1. RSM at 4000 TCD capacity including cogen

plant auxiliaries and colony

3400

2 After Expansion at 8000 capacity including cogen plant auxiliaries

and colony

6000

•

11

TECHNICAL ANALYSIS

•

•

Contents

1.1 Introductions

1.2 Land, Site Development & Civil Works

1.3 Equipment &. Miscellaneous Fixed Assets

1.4 Preliminary & Pre-operative Expenses

1.5 Production Schedule

1.6 Requirements of Raw Materials, Utilities and Consumables

1.7 Manpower Requirement: Qualitative and Quantitative

1.8 Project Income

1.9 Project Implementation Schedule

1.10 Socio-Economic Benefits

•

13

1. Technical

1.1 INTRODUCTION

Based on the project introduction concept and the select steam power cycle collaborated in

the section A & B, the technical feasibility of the proposed project was evaluated. The

following paragraphs present this analysis.

1.2 LAND, SITE DEVELOPMENT & CIVIL WORKS

1.2.1 Land

The proposed co generation project will be built up within the sugar mill complex, and will not

require any additional purchased land. The required land will be provided to the project by RSM free

or cost. Hence, cost of land is not taken into consideration.

1.2.2 Site Development

The site development expenses include leveling expenses, fencing, gates and storm (drains; The

estimated cost under these heads works out to Rs. 20 lakh at prevailing rates of material and labor

1.2.3 Civil Structure

As new boiler and turbine will have to be installed for the cogeneration, project, new structures will

have to be built. In addition, foundations for turbine will have to be built. The estimated cost of civil

structures including extension of the boiler and powerhouses, boiler and turbine foundations,

miscellaneous civil works and Architect's Fees works out to Rs. 10 Crore. The prevailing rates of labor

and material have been, considered in this estimate. The estimate for foundations is based on the

total weight of the equipment and the extent of excavation needed on site.

14

1.3 LIST OF EQUIPMENT AND BRIEF SPECIFICATION

We select the option for RSM Cogeneration Power Plant cycle, the equipment includes

bagasse / biomass fired boiler and accessories, turbo alternator with controls, condenser

and cooling water systems, water treatment plant, steam, piping required, Biomass and ash

storage and handling equipment, control and instrumentation, synchronizing equipment

and required civil work. They have been elaborated in following paragraphs:

a) Steam generator and Accessories

Specifications of the steam generator will be extensive, and may be detailed out prior to

procurement.

The outline specifications arrived for the boiler are as follows:

NEW BOILER SPEC.

Capacity 90 T

Working Pressure 65 Bar

Fuel Used Bagasse / Biomass

Model of firing A.F.B.0

Steam Temp. 490 °C

Stack gas temp. at MCR 140 Deg C

Peak Generation 90 tph

Feed water temp. 126 Deg C

Thermal efficiency for bagasse on GCV,

With feed water at 90 deg Celsius

82%

Fuel Wet Mill Bagasse / Biomass

GCV of bagasse 2500 kcal/kg

Firing for bagasse Rotary Feeders

15

SCOPE OF SUPPLY

This scope of supply for the boiler shall include following:

• Adequately designed and fabricated, number and quality of boiler tubes (water wall

tubes and bank( tubes).

• Adequately designed and fabricated minimum one steam drum with suitable dish

ends, manhole doors (fitted with cross bars,studs and nuts at each end), suitable

internals (to promote circulation and ensuring steam quality), flanged headers, etc.

• Adequately designed and fabricated pneumatic spreader stroker, AFBC type water

cooled membrane wall combustion chamber type furnace to [burn bagasse of 50%

moisture with preheated air, preferable with facility to clean furnace chambers even

at MCR. The requisite burning system for biomass will also be supplied.

• Manifolds, integral pipe works, mountings and fittings with valves, gauges, chemical

injection valves, etc. The integral pipe work shall consist of blow off bends, high and

low pressure drains, water gauge, piping, water and steam connections to the feed

water regulator, feed pipe work from feed control valve to economizer inlet

manifold, feed pipe work for economizer outlet manifold to boiler steam drum,

pressure gauge piping, soot blower steam supply pipe work, safety valves, escape

pipe work, blow down line and drain line, separate steam line upto common steam

header, etc.

• Mechanical dust collector, air ducting from FD fan to air heater, air heater to air box

and PA fan to pneumatic feeding system, etc.

• • Fuel/ gas ducting upto I.D.Fan inlet

• Air dueling for gas firing system.

• Supporting structure with adequately designed and quality of steel to support all

type of loads imposed by the boiler and associated equipment including suitable

galleries and ladders with gratings or open steel flooring at essential levels complete

with hand railings, curb angles and supports.

• All refractory material including standard and high grade refractory tiles, high grades

cement, special shaped refractory tiles, castable refractory bricks for furnace and

high temperature zones and high grade insulating material for exposed portion of

16

the boiler steam drum, integral pipe work, gas air ducting along with wire meshed

super coat reinforcements etc

The scope of supply for associated major equipment is listed below:

• Super heater with adequate heating surface and capable of giving a final steam

temperature of maximum 490°C with ± 10% range at MCR complete with

interconnecting pipelines and mountings like a safety valve, drain valves, pressure

and temperature gauges.

• Induced draught fan for a maximum discharge capacity of 25% higher than

theoretical flue gas quantity and head 30% higher than required at MCR complete

with suitable HP TEFC slip ring motor and starter.

• Secondary air fan along with TEFC squirrel cage motor

• Forced draught fan with a minimum discharge capacity of 25% higher than

theoretical air required and heat 30% higher than required at rated MCR along with

variable inlet cane control dampers in the suction and dynamically balanced rotors.

• Steam operated soot blowing equipment with hand controlled units for requisite

boiler sections.

• Blow down arrangement as per BS complete with all piping to the RCC below ground

sump.

• Economizer with suitable heating surface complete with all tubes/coils, support,

dampers, casing, ducting, soot blower, lagging, necessary thermos wells and bypass

arrangement in accordance with BS.

• Double pass cross current flow type air preheater of suitable heating surface

complete with ERW tubes, plates support dampers, casing, ducting, etc.

• Boiler feed water pumps with adequate capacity and heat along with TEFC squirrel

cage induction motors

• Feed water regulator, thermostatic single element or pneumatic type with by-pass

hand operated control valve as per BS

17

• MS fabricated self supported chimney for individual boiler with adequate size and

height above the ground level as per Pollution Control Board standards along with

supports, helical strakes, ladder and Lightening-arrestor

• Feed water tank of adequate capacity and MS construction fitted requisite inlet

connection and overflow and outlet connection.

• Adequately designed and fabricated deaerator cum storage tank to obtain requisite

temperature rise in the feed water including lift pump and motor starter and

interconnecting piping, valves and fittings.

• LP and HP chemical dosing system including injection pumps, mixing tanks equipped

with stirrers complete with piping and fittings.

• Instrument panel: including steam flow meter, steam pressure meters, CO2 meter,

pressure gauges, multi-point draft gauge outfits, multi-point temperature indicator

outfits, water flow meter, temperature recorders, feed water outlet pressure gauges

and water level indicator.

• Ash cooler

• Pressure parts and water wall

• Silencers for safety valves, vent & Fan suction

• Plane tube economizer

• Tubular air pre-heater

• Variable frequency drive motors for FD/ID fans

• Soot blowing system

• Air compressor for instruments

• Structures and duct work

• Lining and insulation

• Deaerator & controls

• Jacky feed water pump for start-up.

18

AUXILARY EQUIPMENTS AND ERECTED COSTS

Auxiliary equipments include feed water station, steam piping, Bio Mass and ash to transfer,

storage and handling equipment, ESP, valves and other miscellaneous equipment.

The auxiliary equipment outside the scope of supply for boiler and associated equipment

mainly includes main steam piping from superheater header, onwards, drain/overflow

piping of feed water and deaerator tanks, and pressure reducing. Station and automatic de-

superheating system, MDC etc. All the civil works for boiler and associated equipment

foundations and boiler house, extension building will also be excluded and will be dealt

separately in the cost' of civil works.

The requirement of boiler and feed water qualities have been specified below:

i. Feed water

Hardness Nil

pH at 25°C 8.8 — 9.2

Oxygen 0.01 ppm Max.

Total iron 0.01 ppm Max

Total copper 0.01 ppm Max

Silica 0.1 ppm Max

Conductivity at 25°C 2.0 us/cm max.

Hydrazine residue 0.02 — 0.04

ii. Boiler water

pH at 25 Deg °C 9.8 —10.2 max.

Phosphate residue 15 - 25

TDS 500 ppm max.

Specific electrical 1000 us/cm max

conductivity at 25°C.

Silica 10 ppm max

To maintain the above very stringent qualities of water, adequately designed water

treatment plant of requisite capacity is necessary. Based on the broad specifications as per

above requirement and budgetary offers from reputed supplier for RO / DM plant.

Surface condenser, cooling tower, circulation pumps and & associated equipments be

necessary for recirculation the water in the proposed project so as to minimize fresh water

intake and subsequent costs. The estimated cost of these equipments works out to Rs. 60

lakh. This cost is based on broad specifications and budgetary offers from reputed suppliers.

19

I

A detained techno-commercial evaluation will have to be undertaken based on firm and

detailed offers from suppliers.

The material handling: equipment outside the scope of boiler supplier will include

conveyors, trolleys and similar equipment for handling Biomass from the storage yard to the

boiler house, belt conveyors, etc.

b) Steam turbine, controls and accessories

The main criteria for deciding turbine specifications have been outlined Below:

i. Steam requirement in the complex are at 6 kg/cm2 and 1.5 kg/cm2 for process and

will be taken from different turbines as explained earlier. The balance condensing

steam will be through condensing stages of the Turbines.

ii. Maximizing expansion through turbines for maxi defined requirements of process

steam (saturated)

iii. Flexibility of the turbine to retain reliable power supply in a scenario of fluctuating

steam needs of Sugar process.

iv. Efficient power generation or lower specific steam consumption (kg/kW)

v. Minimize steam flow through Pressure Reducing Station (PRS)

As discussed earlier, fluctuations are envisaged in the specific steam and power requirement

of the mill depending upon the production rate. Also, the steam and power needs vary with

production levels. At any given time, with the possible combination of process heat and

power needs, the cogeneration plant has to be designed to reliably meet power and steam

needs of the complex and retain exportability.

20

In this scenario of widely fluctuating to steam ratios, it requires both a source of additional

power during unit back-outs extreme (though rare). Power to steam ratios and a heat sink

to continue power generation during low steam needs, with these needs, the configuration:

of steam turbines for most satisfactory work was identified as below:

- New extraction cum condensing turbine of 15 MW capacity and

- One straight Condensing turbine of 6 MW capacity

These two turbines satisfy the following needs:

i) Supply of varying steam quantities at 6 kg/cm2 and 1.5 kg/cm2

ii) Retaining required captive power supply, by varying the flow through

condensing stage

The steam generation pressure is recommended at 65 kg/cm2, 490 °C.

The desired specifications of the new steam turbine are given

below:

1. Double Extraction cum condensing steam turbine

Type

Generation capacity

Throttle steam conditions

Extraction at (uncontrolled)

Extraction (controlled)

Condensing at

Max throttle steam flow

Min throttle steam flow

Normal throttle steam flow

Max flow through

condensing stage

Minimum flow through

condensing stage

impulse cum reaction

15000 kW

65 kg/cm2

6 kg/cm2

1.5 kg/cm2

0.09 kg/cm2

78000 kg/hr

20000 kg/hr

75000 kg/hr

58500 kg/hr, in off Season

8000 kg/hr

Normal flow through I

33000 during Season

condensing stage

21

2. Condensing Steam Turbine

Type

Generation Capacity:

Throttle Steam Conditions

Max. Throttle flow

Min. throttle flow

Normal throttle flow

Power generation with normal flow

6000 kW

65 kg/cm2

35000 kg/hr

8000 kg/hr

30000 kg/hr

6000 kW

The installation of turbine and cooling towers will require the major civil works. The

approximate weight of the turbine is 8,000 kgs/MW.

S

The common operational problems with steam turbines are vibration, cycling governor,

sticking steam valves, leaky packing, temperature bow, erosion of blading, loss of power and

bearing failures.

Vibration analysis of steam turbines are performed before shipping and commissioning. Rise

in vibration during operation would be due to loss of alignment or expansions.

Other reasons leading to the above operational problems are wear and tear, dirt in, oil,

solids in steam, leaky valves, improper sequence of operation, accumulation of salt son

blades, inadequate oil flow, etc.

•

22

Steam turbine Generation Auxiliaries

MAJOR SCOPE OF SUPPLY:

1. Steam Turbine; (15 MW, double extraction cum condensing and 6 MW

Condensing Turbine.

2. Oil Supply Systems

3. Surface Condensers,

4. Steam Hot Air Ejectors - 2 x 100%

5. Gland Steam condensers

6. Oil Coolers - 2x100%

7. Generator Air Coolers

8. Instrumentation

9. Condense Extraction Pumps -2x100% (Motor Driven)

10. Generator with Excitation System

11. EOT Crane - 1 No.

12. Balance of Plant Equipment Electrical

SCOPE OF SUPPLY - STEAM TURBINE

1. Steam Turbine

2. Emergency Trip Cum Stop Valve„

3. Blanket Plate for Steam Bowing

4. Turbine Steam Governing Valves

5. Steam Strainer Built into Stop Valve

6. Reducing Gear Box between Turbine and Generator.

7. Coupling and Coupling Guard between Turbine and Gear Box.

8. Coupling and coupling Guard between Gear Box and Generator.

9. Manual Barring Device

10. Turning Device, -. Electric (415V,3PH,50,Hz)

11. Solenoid Valve for Remote Tripping

12. Turbine Sole Plates.

13. Foundation Bolt

14. Shaft Grounding Device

15. Mating Flanges for Turbine inlet and Extraction flanges

16. Gland Sealing System (Automatic)

17. Gland Steam Piping form Terminal Point

18. Motive steam piping to steam jet air ejectors from terminal point

19. Motive steam piping to gland steam ejectors from terminal point

20. Extraction steam Piping up to Terminal Points

21. Condenser Hot well Level Control System (Automatic

23

22. Condense Piping (including all valves) up to Terminal point

23. Exhaust hood spray system

24. Special Tools for Maintenance

25. Prime Coat of Paint

26. 0 & M Manuals 6 Copies

27. Turbine Drain Water Piping within TG Block

28. Turbine Insulation (Mineral wool Mattresses)

29. QCNRVs in Extraction Lines (Loose supply)

30. Safety Relief Valve in Controlled Extraction Line

31. Pressure Control Valve in Uncontrolled Extraction line

SCOPE OF SUPPLY - OIL SUPPLY SYSTEM

1. Main oil tank including

• Design & maintenance openings

• Strainer for oil return

• Level indicator

• Level signalization high flow

• Connection of purifier

2. Main oil pump with AC motor (415, 3Ph, 50 Hz)

3. Auxiliary oil pump with AC motor (415, 3Ph, 50 Hz)

4. Emergency oil pump with DC motor (110 V)

5. Jacking oil pump with AC motor (415 V, 3Ph, 50 Hz)

6. Duplex filter for Lube oil

7. Transflow valves for duplex oil filters

8. Oil mist fan with AC motor (415 V, 3Ph, 50Hz)

9. Pressure throttles for bearing

10. Complete lube oil piping (Stainless steel material after filter outlet)

11. Complete control oil piping (Stainless steel material)

12. Overhead lube all tank with complete piping (stainless steel)

13. Oil accumulators

14. Oil centrifuge

15. Governing console consisting of

• Duplex filter for control oil

• main trip solenoid valve

• Electric hydraulic converters

• local gauge board

• Solenoid valve or remote engagement of tripping device

• Solenoid valves for opening / closing of emergency stop valve

• Other hydraulic components

24

SURFACE CONDENSER

• Bellow at condenser neck

• Atm relief valve

• Surge pipe

• Stand pipe

• Isolation valves for instruments & stand pipes

• CW branches counter flanges fasteners & gaskets

• Water expansion relief valves (2 Nos)

• Conceding piece between turbine flange & bellow or condenser dome

• Vent & drain valves

• Sacrificial anodes

• Water box priming pump

• Level gauges

• Level Switches

• Pressure gauges

• Temp gauges

STEAM JET AIR EJECTOR

1. Running ejectors 2*100%

2. Starting ejector 1*100%

3. Inter/after condensers 2*100%

4. Inter connecting piping

5. Steam & air vapor suction headers

6. Sliding plates & anchor bolts

7. Isolations steam supply header & individual ejector elements lines

8. Isolation valves on cooling water Line

9. Water expansion relief vales (2 Nos)

10. Stand pipe

11. Isolation valves for instrument & stand pipes.

12. Cooling water inlet branches counter flanges, fasteners & gaskets

13. Vent & drain valves

14. Silencer for starting ejectors (1 No)

15. Strainer - (3 Nos)

16. Pressure gauges

17. Temp gauges

18. Air flow meter

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GLAND STEAM CONDENSER

1. Steam jet ejectors 2X 100%

2. Water expansion relief Valves -1 No.

3. Stand Pipe -1 No

4. Isolation Valves for instruments

5. Vent & Drain Valves

6. Counter flanges for inlet/outlet

7. Drain collecting tank

8. Foundation Bolts'

9. Sole Plates & Anchor Bolts

10. Level Gauges

11. Level Switches

12. Pressure Gauges

13. Temp Gauges

OIL COOLER -2*100%

1. Changeover Valves

2. Isolation Valves on CW side

3. Vent & Drain Valves

4. Counter Flanges on CW side

5. Sole Plates & Anchor Bolts

6. Pressure Gauges

7. Temp. Gauges

Generator Air Coolers

1. CW side inlet/outlet valves

2. CW in/outlet Headers

3. Isolation Valves on Each Header

4. Sole Plates & Anchor Bolts

5. Pressure Gauges

6. Temp Gauges

SCOPE OF SUPPLY -INSTRUMENTATION

• Electronic Governor (WOODWARD 505E)

- Turbine Speed

- Load

- Controlled Extraction Pressure

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• Programmable Logic Controls with MMI & Programming station

• PLC based Turbine Auxiliaries Interlock and Protections' for the following drives:

Main Oil Pump

- Auxiliary Oil Pump

- Emergency Lube Oil Pump

Oil Vapor Extraction Fan

- Turbine Gear

- Condense Extraction Pumps

• Bently Nevade Make. Dual Channel Turbine Shaft Vibration and Axial

displacement monitoring system (TSI rack) which includes:

- Turbines Front Bearing

- Turbine Rear Bearing

- Generator Front Bearing

- Generator Rear Bearing

- Gearbox High Speed Shaft

Gear box Low speed side bearing

Turbine Axial displacement

• Turbine Control Panel Housing the following

- Electronic governor (Wood Ward 505E)

- TSI monitors

- Bearing Metal Temperatures Monitor for Turbine/Generator

- Push Bottoms and Lamps for Auxiliaries Start/Stop

GENERATOR AND AUXILIARIES

1. Generator with stator, rotor, built - in RTDs, bearings and foundation frame,

space heater and pit-mounted Air-Water heat exchangers.

2. Brushless excitation system including main exciter with tow slip rings for

conventional rotor earth fault relay and exciter (PMG)

3. Phase segregated Al. Bus bars with Al. enclosure (15 rn on phase side +6M on

neutral side) with Cts, Pts, La & SP equipment's.

4. Neutral Grounding resistor (NGR)

5. CO2 fire extinguishing equipment for generator.

6. Generator control, Relay, Metering & Synchronizing Panel.

7. Control cables for generator and its auxiliaries (assuming a cabling distance

between Control room and Generator as 100M)

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BALANCE OF PLANT — ELECTRICAL

1. 11 KV SW Gear

2. 415 V SW Gear (STG MMC)

3. Station Battery & Battery Changer

4. Power & Control Cables

5. Earthling Material

6. Lightning protection material

7. DC Distribution Board

8. Cable trays and accessories

9. Safety equipment like Rubber mats, Danger Boards etc.

10. UPS

• Erected Cost

The total erected cost of the turbines including generators, controls and accessories works

out to Rs. 24 crore gives details the cost estimation.

c) Electrical Power Evacuation & Steam Management System

The return on investment for any cogeneration project depends on the actual power

evacuated from the turbojet and supplied to the process or utility.

A major reason, for lower returns of on cogeneration projects is the improper management

of power evacuation, leading to loss of cogenerated power and rise of steam flow through

PRS. • The proposed cogeneration plant has to operate in a scenario of continuously varying steam

and power demands from the sugar process. Since the project opts to supply all the captive

power, it will have to continuously export a minimum amount to maintain stability of the

synchronizing mechanism

It is hence felt essential to build a power evacuation system, which broadly maintains the

following requirements of the cogeneration plant:

1. In conditions of abnormally high steam demand, the system will permit steam

flow through PRS to satisfy process needs. The system will need to have a closed

loop control with pressure and temperature transmitters at all major steam using

equipment.

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•

•

2. The system: will need to maintain a minimum power supply to grid. This will be

achieved by increasing steam flow through condenser. The system will be

programmed for a rate of rise or fall in grid power supply and will accordingly

regulate steam flow through the condensing sections.

3. In cases of abnormal steam flow and to maintain reliable power availability, the

system may need to extract more steam at 6kg/cm2 and reduce condensing flow

as per process needs. This intelligence will be built into the system.

4. The distribution of boiler load will be monitored by the system by continuously

displaying end analyzing flue gas temperatures and CO2 percentages, Uniform

retaining of loading and tripping under loaded boilers is required to maintain

overall steam generation efficiency. This can be built by automatically varying the

fuel feeder or by annunciation.

5. The system will also need to monitor the plant safety. Monitoring of steam

generation pressure. Pressure and temperature of turbine inlets power factor at

generators, loading of generator. Temperatures at critical bearings etc will be

specified. Programs will be built in to ensure that specified limits are not crossed

and communication at earlier levels are done.

6. The power evacuation system will be a distributed control system with a

common control centre. Hence, from the common control centre the

cogeneration plant operator can control, monitor and provide reliable steam and

power needs to the different processes and feed to the grid.

7. This PLC based system will generate a shift wise moving average record of all

relevant parameter of the cogeneration plant Those parameter will include

steam generation quantity pressure and temperature from the boiler, to the

turbojet and from each extraction, power evacuated from the turbojet and its

distribution analysis, boiler operation characteristics like flue gas temperatures

and gas analysis, power drawn from grid and its distribution etc. A programmed

is being built to generate the cogeneration plant efficiency based on these

parameters per shift. This programmed will calculate the efficiency, compare

with cumulative and previous best and highlight major variations. This efficiency

would mean, the ratio of power evacuated to fuel supplied to the

Cogeneration plant, all in equivalent units.

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8. The power evacuation system will have annunciation for:

- Large variations in steam pressures and temperatures, at generation, turbine

inlet, extractions and condensing stages and at all critical points supplying to

process.

- Sudden tripping of any process electrical load, in predetermined blocks of MCCs,

with indication of process stoppage or voltage drop.

- Large variations in power factor, voltage and power from the generator.

- Rise in temperatures of critical bearings.

- Over/under loading of boiler.

-

Failure of any field sensor.

Low/high water levels of steam generator and large variation in flue gas analysis

and temperatures at all stages including before and after economizer, and before

and after superheater and before and after air pre-heater etc.

The major drawbacks of having a fairly advanced control system are the reliability of season,

facilities calibration, availability of environment of sugar mills. The areas of reliability and

calibration facilities will be needed to be included in the scope of the control system

suppler.

The project will need to employ or train engineers in maintenance of instrumentation and

sensors

The control room and the sensors will need to be enclosed in Specified environment for

which required HVAC arrangements will be made by the project.

d) Synchronizing Panel with Protection Relays

Synchronizing panel with protection relays will have following major components:

• Quadrature droop CT with AVR for paralleling electrical governer.

managed generator

• Auto PF controller

• Auto and manual synchronizer

• Import export meter

• Protections for generator including differential generator, differential umt

transformer, starter and rotary earth fault, over voltage, loss of excitation,

under voltage, reverse power, minimum impedance, phase unbalance,

over load alarm and under frequency

• Protection relays including non directional and directional relays,

synchro-check relays on Wapda and generator breakers, reverse power

relay, U /F relay, lock out relay etc.

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e) ELECTRICAL EVACUATION PACKAGE

• HT cabling from generator panel to transformers.

• 8 MVA x 1, 11/5.5 KV step down transformer and auxiliaries.

• MT cabling from step down transformer to existing Sugar Mills Panel.

• Synchronizing panel with all auxiliaries and interconnection

• Required circuit breaker f isolators.

• Auto P.T. controller.

• Export - import meter

• Required CTs end PT.s

• HT switchyard

• Tie-line upto Wapda sub-strain.

f) Other Miscellaneous Fixed Assets

These include office furniture and fixtures, yard and colony power distribution, water

storage and distribution costs, miscellaneous tools and spares, make up water evaporator,

firefighting equipment, material handling equipment like weigh-bridge, crane and hoists,

etc., workshop and lab equipment and vehicles.

f) Standards

All procurement to be made for the cogeneration plant will be as per applicable [ISI, ISO/

IBR / ASME/ DIN standards. Some of the specific standards to be followed are:

- Boiler efficiency will be assessed by BS 845: Part 2:1987

- Boiler design will be certified as per prevailing Bristish Standards norms

- All steam piping will be designed as per corresponding steam pressure as per ASTM

A 59-68

- All water piping will be as per schedule 40 and B.S. 1387 : 1967

- All flanges will be as per relevant pressure table of British standard pipe flanges (B.

S. 10: 1962) or DIN cast steel flange standard

- Generator insulation will be of Class F

- NEMA standards will be applicable to turbine governors

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- Turbines will be certified by manufactures for thermodynamic performance as per

the ASME performance test code 6

- All instrumentation sensors will be as per IP-Ei5

- All Vendors will be required to list Suppliers of bought out items With Standards

adhered and equivalent standards.

- The manufacturing of boilers will be supervised by stage wise inspection from

identification of plates, metallurgical testing, x-ray testing of welds hydrostatic

pressure and steam generated tests.

- All valves and fittings will be procured with valid certification.

- Representatives from M/s. RSM should preferably witness the dry run, hot air run

and load test of steam turbine and generator.

- Turboset will be procured with performance curves at various loadings for steam

turbines and generations.

- Adherence to above standards during procurement and acceptance will decrease

teething problems during commissioning and extend the plant life cycle.

g) Safety and Ecology

The design of safety into the project is desirous for extending life cycle, improving returns

on investment and, decreasing unprecedented shutdowns.

By adhering to established standards as above and undertaking required inspections, the

safety of plant and equipment can be built into the project For pressurized equipments like

boilers, deareators and turbines, annual hydrostatic pressure inspection will be planned,

Continuous monitoring of flue gas temperatures will indicate the need of fire/water side

cleaning.

A R.O. plant and softening plant are included in the project cost to decrease or avoid water

side scaling and deposition on turbine blades. All transformers will be certified by the

electrical inspector and annual inspection/filtration of cooling oil is planned.

The proposed power evacuation system will play a pivotal monitoring power and heat

parameters to prevent any undesired excesses.

32

•

Procurement of safety devices like welders goggles, helmets, hand gloves, ear-muffs etc. are

planned. On commissioning, of the cogeneration plant is also planned to conduct a safety

awareness programme for operators by an experienced professional firm.

Major undesired exposures the cogeneration plant Operator will be exposed to are high

sound levels of turbine steam pressure and Temperature and high voltage (11,000/415

volts). Adequate thermal electrical insulation and sound proof barriers are being built into

the project.

Any project involving power generation raises environment and ecological concern.

However, this additional cogeneration project assists in directly reducing associated

pollution and warming follows of power generation.

During the power plant operation bagasse is the principal source of fuel. The ash content is

at 2% . The fly-ash generated will be collected in Dust Collector or electrostatic precipitators.

Appropriate designs and emissions levels are being discussed with boiler manufactures.

1.4 PRELIMINARY AND PRE-OPERATIVE EXPENSES

The preliminary expenses include preparation of DPR, legal charges and other expenses for

the cogeneration project costs.

The pre-operative expenses include establishment expenses, rent rates and taxes, travelling

expenses, start up expenses, project management expenses of RSM, insurance charges

during construction period, interest charges on loans during construction period, mortgage

expenses and stamp duty bankers charges, project development expenses, etc.

1.5 PRODUCTION SCHEDULE

The cogeneration plant will operate 24 hrs / day and for about 310 days per year. The

season days have been assumed at 130 during which the project will operate on 70%

Biomas and 30% on the mill bagasse. During the season, the captive steam and power

requirements of RSML will be met and the exportable surplus will be sold to SEPCO grid. The

off season days have been assumed at 180, during which the plant will operate on saved

and stored bagasse & biomass. The entire power generated in the off season, excluding the

captive requirement for the cogen plant, will be sold to the SEPCO grid.

The plant will generate 14 MW of exportable surplus during the season, equivalent to 43.68

million KWH after applying a derating factor of 0.90. The plant will also generate 15 MW of

•

33

exportable power during the off season, equivalent to 64.80 million KWH after applying a

derating factor of 0.95. Thus for seasonal and off-seasonal operations: the net power export

will be 108.48 million units, at maximum utilization levels

Though, the options for supply to other unit of the promoters or other credible customers

were discussed in previous chapters, for the purpose of evaluating feasibility, it is assumed

that all exportable power is sold to SEPCO.

1.6 REQUIREMENTS OF- RAW MATERIAL, UTILITIES & CONSUMABLES

1.6.1 Raw Materials

Biomass would be required as 70% of the Fuel. This would be bought from the open market

through long term contracts. Bagasse would run as 30% of the fuel throughout the year.

For economic analysis, cost of bagasse used for generation of exportable surplus in season

and off-season periods has been considered as the raw material cost Since the entire saved

bagasse or steam consumption for new condensing stage of turbine will be for export

power, both during season and off-season, the respective quantities of bagasse are charged

to the cogeneration project as raw material costs. During season about 9 TPH will be used

for export power generation. The cost of bagasse is taken at Rs. 2,500 per tonne.

1.6.2 Consumables & Utilities

The consumables like lubricants, chemicals, etc, will be required to operate and maintain

the equipment in the proposed project Based on the existing requirement at RSML complex • and proposed additional requirements for water treatment, etc. Water is the only utility

required for operation of the proposed project. The estimated requirement for boiler drum

water make up, cooling tower make up and other miscellaneous requirements, etc, work

out to 1200 KL per day.

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1.7

1.7.1

MANPOWER REQUIRMENTS : QUALITATIVE & QUANTITATIVE

17.1 Following table illustrates the requirements of additional manpower indirect,

administration and other categories alongwith their skills and experience required.

Sr. Category Nos. Nature of duty

No.

A. Direct Labour

A.1 Highly skilled & A/B Category Operation of boiler, turbine

Skilled workers. 54 and water treatment plant.

A.2 Semi skilled 10 Operation of water/oil pumps

A.3 unskilled 30 Assistance For Boiler/Turbine

Operation /bagasse handling.

A.4 Electricians 02 Eletrical maintenance

A.5 Fitter 02 Mechanical maintenance

A.6 Supervisors 02 Power plant operartion management.

A.7 Chief Electrical Engineer 01 Incharge — Power plant Electrical

Maintenance.

A.8 Chief Mechanical Engineer 01 Incharge — Power plant mechanical

Maintenance.

A.9 Dy. Chief Engineers 02 Supervise Power plant operations.

A.10 Instrument Engineer 01 Supervise Power plant Instrumentation

A.11 Shift Engineer 03

A.12 Store Clerks 03

Tota I 90

35

B. Administrative/selling Manpower

B.1 Dy. CEO or power 01 Managing the entire operation.

Plant manager.

B.2 Commericial Officer 01 liason with SEPCO / Wheeled Customers

B.3 Accountant/peon/clerical 09 Administration work of the power plant

B.4 Purchase and Store Clerk 02 Purchase and storage.

Total 13

Note :

It is recommended that present admin staff be given additional responsibility of the

proposed cogen plant to rationalise manpower needs. It is possible to reduce the manpower

substantially by alloting common responsibilities of all the utilities.

1.7.2 It is seen that a total of 103 personnel will be required for operation of the power

plant. The skilled operators I electrical engineers I shift supervisors must have

necessary experience and adequate qualifications. The power plant manager must

have at least 15-20 years similar experience and requisite qualifications.

Training of operators for high pressure boiler and associated water treatment plant is a pre-

requisite for successful future operation.

1.8 PROJECT INC O' E

The project income will be from sale of exportable surplus to SEPCO at Rs. 10.5 I unit

purchase price at the year of commissioning and further escalation of Rs. 0.5 every year. The

project income at 100 % utilization of the cogen plant works out to Rs. 108.48 crore.

1.9 PROJECT IMPLEMENTATION SCHEDULE

The project implementation schedule has been worked out at 15 months from closing of

finances. Based on the project start date of Aug, 2013, it will get commissioned in

November, 2014.

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A detailed PERT/CPM network will be prepared on a computer programme by listing down

all the activities and sub-activities, developing logics, evaluating the CPM and monitoring

the same, for project monitoring.

1.10 SOCIAL ECONOMIC BENEFITS

1.10.1 Introduction

RSML Holds pioneering status for several land marks in the sugar sector, for efficiency of

recovery and constantly sustaining profitability.

RSML belonging to the Corporate sector, is a professionally managed company. All senior

decision makers and line managers possess requisite professional qualification and

experience. The delegation of authorities and responsibilities is scientifically planned.

This additional cogeneration project will pave the way for RSM to grow and survive in the

highly volatile and fiercely competitive future. This will not only improve their individual

profitability but also assist in facing with the shortage syndrome in

the power sector. The captioned project will have some of the following major socio-

economic benefits.

1.10.2 A Multiplier Effect

Successful implementation and operation of this cogeneration project will give impetus to

most of the sugar mills not only in Sindh but also throughout Pakistan.

1.10.3 Energy Efficiency Culture

The energy efficiency improvement in sugar mills and consequent additional saving in steam

are electricity consumption go hand in hand for improving power production, revenue and

profitability of the proposed project.

This in a way will automatically enforce the much wanted energy efficiency culture in sugar

industries.

1.10.4 Employment Potential

The captioned project will envisage employment for about 103 personnel of various skills

and categories. Apart from this, all associated projects for efficiency improvement, fuel

collection storage, densification and substitution, etc. will give enormous potential for

employment in the rural masses adjoining the sugar mill location and improve their

economic status.

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1.10.5 Integration

The proposed cogeneration project will really help integration of RSML sugar mill operations

and will enable the management instill long term viability and profitability.

•

•

38