INDEX

S. NO. CONTENTS PAGE NO. 1.0 Executive Summary 1 2.0 Introduction of the Project / Background Information 2 (i) Identification of Project & Project Proponent 2 (ii) Brief Description of Nature of the Project 5 (iii) Need for the Project & Its Importance to the Country and or Region 5 (iv) Demand-Supply Gap 6 (v) Import Vs. Indigenous Production 6 (vi) Export Possibility 6 (vii) Domestic / Export Markets 6 (viii) Employment Generation (Direct and Indirect) due to the Project 6 3. Project Description 7 (i) Type of Project including Interlinked and Independent Projects, if any 7 Location (Map showing General Location, Specific Location, and Project Boundary & Project Site (ii) 7 Layout) with coordinates (iii) Key Plan 9 Details of Alternative Sites Consideration and Basis of Selecting the Project Site, Particularly the (iv) 10 Environmental Considerations gone into should be highlighted (v) Size or Magnitude of Operation 10 (vi) Project Description with Process Details 11 Raw Material Required along with Estimated Quantity, Likely Source, Marketing Area of Final (vii) 13 Products, Mode of Transport of Raw Material and Finished Product Resources Optimization/ Recycling and Reuse Envisaged in the Project, if any, should be briefly (viii) 14 outlined (ix) Availability of Water its Source, Energy /Power Requirement and Source should be given 15 (x) Quantity of Waste to be Generated (Liquid and Solid) and Scheme for their Management/ Disposal 15 4. Site Analysis 16 (i) Connectivity 16 (ii) Land Form, Land Use and Land Ownership 16 (iii) Topography 16 Existing Land Use Pattern {Agriculture, Non-Agriculture, Forest, Water Bodies (including area under CRZ)}, Shortest Distances from the Periphery of the Project to Periphery of the Forests, National Park, (iv) 17 Wild Life Sanctuary, Eco Sensitive Areas, Water Bodies (Distance from the HFL of the river), CRZ. In Case of Notified Industrial area, a copy of the Gazette Notification (v) Existing Infrastructure 17 (vi) Soil Classification 18 (vii) Climatic Data from Secondary Sources 18 (viii) Social Infrastructure Available 18 5. Planning Brief 18 Planning Concept (Type of Industries, Facilities, and Transportation etc.) Town and Country Planning/ (i) 18 Development Authority Classification (ii) Population Projection 19 (iii) Land Use Planning (Break Up along with Green Belt Etc.) 19 (iv) Assessment of Infrastructure Demand (Physical & Social) 19 (v) Amenities/ Facilities 19

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S. NO. CONTENTS PAGE NO. 6.0 Proposed Infrastructure 19 (i) Industrial Area (Processing Area) 19 (ii) Residential Area (Non Processing Area) 19 (iii) Greenbelt 19 (iv) Social Infrastructure 19 (v) Connectivity 19 (vi) Drinking Water 19 (vii) Sewerage System 20 (viii) Industrial Waste Management 20 (ix) Solid Waste Management 20 (x) Power Requirement & Source 20 7. Rehabilitation and Resettlement (R & R) Plan 21 Policy to be adopted (Central/ State) in respect of the Project affected persons including Home Oustees, (i) 21 Land Oustees and Landless Laborers (Brief Outline to be given) 8. Project Schedule & Cost Estimates 21 Likely Date of Start of Construction and Likely Date of Completion (Time Schedule for the Project to (i) 21 be given) (ii) Estimated Project Cost 21 9. Analysis of Proposal 21 Financial and Social Benefits with special emphasis on the benefit to the local people including tribal, (i) 21 population, if any in the area

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Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

PRE - FEASIBILITY REPORT

1.0 EXECUTIVE SUMMARY

M/s. Grasim Industries Ltd. is proposing expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant at Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka.

Table 1.0 Existing and Proposed Facilities Existing Additional Total Capacity S. No. Particulars Unit Capacity Capacity after Expansion Harihar Polyfibres Division (Pulp Plant) Pulp TPA Pulp TPA Pulp TPA Recovery Boiler MW Recovery Boiler MW Recovery Boiler MW Grasilene Division (Fibre Plant) Viscose Staple Viscose Staple Viscose Staple TPA TPA TPA Fibre (VSF) Fibre (VSF) Fibre (VSF) Sulphuric Acid TPA Sulphuric Acid TPA Sulphuric Acid TPA Carbon Disulphide TPA Carbon Disulphide TPA Carbon Disulphide TPA By-product By-product By-product (Anhydrous sodium TPA (Anhydrous sodium TPA (Anhydrous sodium TPA sulphate) sulphate) sulphate) Captive Power Captive Power Captive Power MW MW MW Plant Plant Plant Excel Fibre Excel Fibre Excel Fibre (Solvent Spun TPA (Solvent Spun TPA (Solvent Spun TPA Cellulosic Fibre) Cellulosic Fibre) Cellulosic Fibre) *Out of the proposed capacity of VSF i.e. 87600 TPA; 7,300 TPA will be done by debottlenecking and 80,300 TPA by new installations.

Table 2.0 Salient Features of the Project S. No. PARTICULARS DETAILS Location 1. Village Kumarapatnam

Taluka Ranebennuru

District Haveri

State Karnataka Latitude 14° 31’ 23.86” N to 14° 32’ 21.55” N 2 Longitude 75° 46’ 27.76” E to 75° 47’ 42.98” E Toposheet No. 48N/10, 48N/11, 48N/14 and 48N/15 Project Details Capital Cost of the project Rs 2550 Crores 3. Cost for Environmental Protection measures

M/s. Grasim Industries Ltd. 1 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

S. No. PARTICULARS DETAILS • Capital Cost 600 Crores • Recurring Cost 06 Crores / annum 4. Project Requirement Plant Area The existing area is 431.36 ha (including plant area, greenbelt area, township and other facilities). Water Requirement Total after Existing Additional (Fresh water) Particulars Unit proposed Requirement Requirement expansion Pulp Plant KLD 36,000 23,160 59,160

VSF Plant KLD 18,670 16,240 34,910

Excel Plant KLD - 3,130 3,130 Source: Tungabhadra River *The additional water requirement has been reduced by 36% of the quantity proposed for pulp plant at the time of EC application and 13% of the quantity proposed for VSF plant. Total after Existing Additional Particulars Unit proposed Requirement Requirement expansion Pulp Plant MW 10 10 20 Power Requirement Source : Recovery Boiler (Captive) (MW) VSF Plant MW 20 20 40 Source : Captive Co-generation Power Plant Excel Plant MW - 10 10

Source: Captive Co-generation Power Plant Manpower Particulars Existing Additional Total after Expansion Requirement Total 1116 747 1863

2.0 INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION

(i) Identification of Project and Project Proponent

M/s. Grasim Industries Ltd. is proposing expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant at Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka

Project Proponent: - Harihar Polyfibers (HPF) & Grasilene Division (GRD) are two Units of Grasim Industries Limited set up in 1972 & 1977 respectively at Kumarapatnam (280 km north of Bangalore) in Karnataka State. HPF produces 74,400 TPA Rayon Grade pulp (RG Pulp) employing pre-hydrolysis Kraft process. Rayon grade pulp is the main raw material for Viscose Staple Fibre (VSF) production. The GRD produces 87,600 TPA VSF which is mainly sold in domestic spinning markets in Southern India. The existing captive power plant (CPP) of 20 MW capacity will be expanded to 50 MW CPP. Both HPF & GRD have been the trend setters in incorporating environmentally friendly technologies for RG pulp & VSF manufacturing. Also, Grasim

M/s. Grasim Industries Ltd. 2 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

industries are proposing for Excel Fibre Plant (Solvent Spun Cellulosic Fibre Plant) to produce 36,500 TPA of cellulosic fibre.

Corporate Sustainability

We believe that a company's prosperity is linked with that of its neighboring communities. We touch the lives of the communities that surround our operations either on our own or in partnership with government bodies and the community at large. Empowering communities and working towards making a meaningful difference to them is an approach that is deeply engrained in our business. The vision is to become a catalyst of positive change in society. The Industry’s CSR activity focuses on more than 10 Villages situated around factory premises. HPF has been shouldering its social responsibility by helping the inhabitants of the surrounding villages in the following areas:

• Education • Health and Family welfare • Social welfare services • Infrastructure development • Sustainable Livelihood (Woman empowerment)

CSR is a continuing activity for all progressive organizations and HPF understands and appreciates that as the company progresses, expectation levels of neighborhood population increases. o The Industry’s CSR activity focuses on more than 10 Villages situated around factory premises. HPF has been shouldering its social responsibility by helping the inhabitants of the surrounding villages in the following areas:

 Education o Merit scholarship every year to the meritorious students of the schools and colleges o Organizing Quiz, Drawing, Essay, Rangoli and Debate competitions o Help in organizing District level scouts & guides students rally at villages. o Running a Balawadi Center at Kavalethu village. o Motivating to develop gardens in schools by planting variety of shadow and fruit bearing saplings. o Organizing Prathibha Karanji Programs in schools. o Organizing rural sports, normally students from 13 higher primary schools participate. o Donated computers to the blind school at Ranebennuru and to Ananda Balawadi Kavalethu for organizing Computer Training Classes. o Supporting Libraries in 6 villages. o Distribution of plant saplings and organizing Vanamahotsava program in schools o Organizing General health checkup in 31 schools of nearby villages covering approximately 3880 students every year. o Imparting training for the women, girls and youths of villages in income generating programs like Tailoring, Agarbathi Making, Blanket making, Bag stitching, Chalk piece making, Phenyl and soap oil making, Vermi compost making etc.

M/s. Grasim Industries Ltd. 3 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

 Health and Family Welfare o Daily medical check-up camps in villages and supply of medicines free of cost. o Arranging family planning operation camps every month. o Conducting eye operation camps for villagers at free of cost, every month. o Dental camp once in a month in one of the villages in association with Bapuji Dental college Davangere. o Multi-Specialty health camps for the benefit of villagers in the premises. In these more than 350 villagers avail the benefit under one roof and get treated for ailments like blood pressure, diabetes, eye problems, skin infections, heart problems etc. o Conducting awareness programs like personal hygiene, nutrition, HIV, mother and child care etc. o Active participation in immunization camps and pulse polio camps in association with District Health Department. o Organizing artificial limb fitment camps.

 Social Welfare Services o Assistance to organize veterinary camps in villages for treatment o Mobilization of General Insurance and Yashaswini Cards for the villagers to avail benefits of BPL families. o Mobilization of Bhagyalakshmi bonds. o Mobilization of Pension o Contribution towards organizing District Level World Disabled Day in the taluk of Haveri district, benefiting the disabled to a maximum extent. o Financial assistance to organize fairs and festivals of Airani, Mailara and Kuruvathi villages every year. o Support to organize District / Taluk Level Wrestling Competitions at Airani & Jai Hanuman Gymnasium School, Harihar. o Organizing awareness training programs on chronic diseases to cover maximum beneficiaries. o Assistance to mass marriages o The CSR team always stands first in attending to emergency services like shifting accident and sick cases to nearby hospitals, extending fire tender services to nearby villages. o Financial assistance to Fishermen Association was provided for purchase of fish nets for their socio-economic development when they lost their nets during flood.

 Infrastructure Development o Financial assistance for Jal-Nirmal Project, providing safe drinking water to nearby villages. o Motivating Suvarna Grama Yojana in 2 villages o Mobilizing of funds to construct Toilets, Cattle Sheds and Krushi Honda (Water Ponds) every year. o Construction of Community halls in 8 villages & school building in one of the village. o Encouraging farmers to develop Vermi-compost in their lands. o Maintaining Potable Water Supply Systems in 5 villages.

M/s. Grasim Industries Ltd. 4 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

o Distributing Street Light Sets to villages. o Construction of sheds for weavers.

 Sustainable Livelihood o The Company’s CSR team imparts training on income generating activities like Leaf plates making, Agarbatti making, Vermicelli making, Tailoring, Dairy, Sheep rearing, and blanket making. o Many women of self-help groups in villages have become members of Gram Panchayats and Co- operative Societies. o Established 75 Self Help Groups in surrounding villages. o Organized Training Program for Rural Artisans like carpentry, pot making, leather tanning etc. o Organize Training Programs on Govt. Schemes at Makanur village. o Mobilizing Dairy Development Loans for Self Help Group members. o Motivating company employees for small savings through Post Office Recurring Deposit Scheme. Mobilizing high yield seeds from Agriculture Department and distribution to farmers every year. CSR is a continuing activity for all progressive organizations and HPF understands and appreciates that as the company progress, expectation levels of neighborhood population increases.

(ii) Brief description of nature of the project M/s. Grasim Industries Ltd. is proposing expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant at Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka

As per EIA Notification dated 14 th Sept., 2006 and its subsequent amendments, this project activity falls under Category ‘A’ Projects, S. No. 5 (d) Man Made Fibers, S. No. 5 (i) Pulp Plants and S. No. 1 (d) Thermal Power Plant.

(iii) Need for the project and its importance to the country and or region. The purpose behind the proposed project is: • To remain competitive and survive by increasing the productivity & efficiency by capacity up gradation through incorporation of eco friendly technologies and energy efficient equipments. • The pulp produced at HPF is inadequate to meet the VSF production capacity of the VSF plant at Kumarapatnam. Accordingly, the VSF plant needs to source its additional pulp requirement from other state or abroad. With augmentation of pulp production capacity at HPF the adjacent VSF plant need not have to source its pulp requirement from outside. Thus, the activity will have a positive environmental impact due reduced vehicular movement while helping the pulp unit in economically sustaining its business through improved productivity. Further; the pulp produced at HPF will be used in the VSF plant in semi dried conditions thereby the need to receive almost fully dried pulp from other source is avoided. Needless to mention, the drying of pulp needs substantial heat energy which in turn necessitates usage of fossil fuels. • In pulp manufacturing process we aim to adopt advanced cleaner technologies to reduce pollution at source and to improve quality of treated effluent and air emissions. In Fiber manufacturing process, we aim to

M/s. Grasim Industries Ltd. 5 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

increase production without increasing the specific water consumption, reduce TDS load, reduce SO 2 &

CS 2 emissions and improve the overall environmental performance. Thus, one of the main intentions of this expansion is to improve environmental performance of the industry along with increased production to remain competent in the market & to sustain the business. • Also, VSF has market demand in southern India. If we don’t meet market demand then VSF will be bought from north India which will increase transport, fuel consumption and thus negative impact on environment. Hence; by increasing the VSF production, the overall fuel consumption used for transportation and increased carbon footprint can be reduced.

(iv) Demand – Supply Gap Among major staple fibres, Viscose Staple Fibre (VSF) will have better growth due to perfect fit the higher growing categories in apparels. The growing demand for casual, fashionable & comfortable wear will lead to higher growth of VSF. In India, it is expected that VSF demand to grow at a rate of 11% during 2015-20. The demand of fibres for textiles will need to be met by MMF and VSF has got the clear advantages for taking a major share in this due to its unique properties. With growth in consumer’s preference for comfort and fashion, Viscose is emerging as the fibre of choice. This provides opportunities for Indian Textiles value chain to grow and supply to international brands, earning foreign exchange for both themselves and country.

(V) Imports vs. Indigenous production The Viscose Staple Fiber from the VSF Plant will be sold to spinning units of South India.

(vi) Export Possibility The finished product of the plant is being / will be exported to Bangladesh, China, Turkey, Europe, Pakistan, USA, Mexico, Argentina etc.

(vii) Domestic/Export Market Domestic Market mainly includes Rajasthan, Madhya Pradesh, Haryana, Punjab, Karnataka and Tamil Nadu.

(viii) Employment Generation (Direct and Indirect) due to the project sourcing There is no additional man power required for the Pulp Plant as the existing man power of 491 employees will be utilized for the proposed expansion project. The details of manpower required for VSF and new excel fibre plant are as given below- Table-3 Man power Requirement Existing Additional Total after expansion S. No. Particulars Regular Contract Regular Contract* Regular Contract 1. Skilled 250 75 200 90 450 165 2. Semi- Skilled 173 125 87 140 260 265 3. Unskilled 293 200 - 230 293 430 Total 716 400 287 460 1003 860

M/s. Grasim Industries Ltd. 6 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre-Feasibility Report

3.0 PROJECT DESCRIPTION (i) Type of Project including interlinked and independent projects if any There is no interlinked Project. (ii) Location (map showing general location, specific location, and project boundary project site layout) with coordinates

Figure 1: Location Map

M/s. Grasim Industries Ltd. 7 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant, and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

Figure 2: Project site layout

M/s. Grasim Industries Ltd. 8 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant, and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(iii) Key Plan

Figure 3: Map showing Environmental Settings of the area

M/s. Grasim Industries Ltd. 9 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(iv) Details of alternative site consideration and basis of selecting the proposed site particularly the environmental considerations gone sound be highlighted.

No additional land is to be acquired for the proposed project as the land available within the existing plant premises will be used to install additional plant facilities. The existing plant is self sustainable in terms of infrastructure facilities with adequate availability of resources, qualified, trained & experienced workforce and well connected with Road and Railways and the same will be utilized for proposed expansion project.

(v) Size or magnitude of operation The Pulp plant expansion Project plan comprises of: • New suitably designed higher capacity wood chippers in place of existing chippers. • Additional wood chips silo. • Chips washer with water recycling system. • Additional digester with DCS connectivity. • State–of-the-art pulp screening system. • State-of-the-art brown stock washing with twin roll presses and bleaching with dewatering presses. • Oxygen de-lignification followed by Elemental Chlorine Free (ECF) bleaching with de-watering presses. • New oxygen plant. • Energy efficient Twin Wire press for dewatering the bleached pulp. • Pulp sheeting machines. • Additional Evaporators. • Additional suitably designed green liquor and white liquor clarifiers. • New recovery boiler with required auxiliaries and 10 MW Turbine • New lime kiln with required auxiliaries. • Additional biogas plant facilities. • ETP up gradation.

The Fiber Plant expansion project comprises of: • New higher capacity Churn machines (2 Nos.) in place of old viscose machines. • New suitable capacity advanced spinning machines (2 Nos) in place of old machines. • New sodium sulphate recovery plant with required numbers of MSFE and anhydrous plant.

• New Carbon disulphide (CS 2) & Sulphuric acid (H 2SO 4) plant of required capacity. • New Effluent Treatment Plant with diffused aeration system. • New Water Treatment Plant.

• New CFBC boilers (2 Nos.) with required numbers of ESPs and SO 2 emission control system. • New turbine of 30 MW capacity.

Proposed Excel Fibe plant: New excel fibre plant will be installed which includes all necessary operational facilities.

M/s. Grasim Industries Ltd. 10 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(vi) Project description with process details Table 4 Project Description

Existing Additional Total Capacity S. No. Particulars Unit Capacity Capacity after Expansion Harihar Polyfibres Division (Pulp Plant) Pulp TPA Pulp TPA Pulp TPA Recovery Boiler MW Recovery Boiler MW Recovery Boiler MW Grasilene Division (Fibre Plant) Viscose Staple Viscose Staple Viscose Staple TPA TPA TPA Fibre (VSF) Fibre (VSF) Fibre (VSF) Sulphuric Acid TPA Sulphuric Acid TPA Sulphuric Acid TPA Carbon Disulphide TPA Carbon Disulphide TPA Carbon Disulphide TPA By-product By-product By-product (Anhydrous sodium TPA (Anhydrous sodium TPA (Anhydrous sodium TPA sulphate) sulphate) sulphate) Captive Power Plant MW Captive Power Plant MW Captive Power Plant MW Excel Fibre Excel Fibre Excel Fibre (Solvent Spun TPA (Solvent Spun TPA (Solvent Spun TPA Cellulosic Fibre) Cellulosic Fibre) Cellulosic Fibre) *Out of the proposed capacity of VSF i.e. 87600 TPA; 7,300 TPA will be done by debottlenecking and 80,300 TPA by new installations.

 Process description of Pulp Plant: Debarked wood logs will be chipped in energy efficient single higher capacity chipper. Dust generated during chipping will be recovered and reused in boiler to generate steam. Wood chips will be stored in chip silo, washed in a chips washer with water recycling arrangement. The wood chips will be cooked in batch digesters using pre-hydrolysate sulfate process. Cooking system will be automated with DCS system. The cooked pulp from the blow tank will be screened in a high consistency pressure screen to separate knots, shives and coarse sand. The pulp will be washed in Twin Roll presses and then subjected to oxygen de-lignification to reduce the Kappa by about half. This stage will then be followed by washing in two stages employing twin roll presses. The oxygen de-lignified pulp will be bleached with a typical ECF sequence Do-EOP-D1-P, centricleaned to produce 90% ISO brightness pulp. Both washing and bleaching sections will be automated with DCS system to ensure optimum usage of chemicals Bleached pulp will be dewatered in an energy efficient twin wire press to 46% dryness. The pulp will be shredded and transported to VSF plant. Chlorine dioxide, oxygen will be prepared on site. Other major chemicals viz., caustic, sodium chlorate, sulphur dioxide, sulfuric acid will be purchased. Pre-hydrolysate liquor generated during cooking process will be treated in bio-methanation plant employing UASB process producing biogas. Biogas thus generated will be used in lime kiln substituting furnace oil.

Chemical Recovery Black liquor generated during pulp washing will be concentrated from 17% TS to 75% TS in multiple effect evaporator and fired in single drum design Chemical Recovery Boiler. Organic lignin burns

M/s. Grasim Industries Ltd. 11 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

generating 45 KSC steam powering a 10 MW extraction cum condensing turbine, meeting steam and power requirement of the plant. Deficit in steam, if any, will be met from coal fired boiler. Inorganic sodium salts will be recovered as smelt from the boiler furnace. The smelt leaving the furnace is dissolved in weak liquor to produce green liquor. Green liquor is clarified and reacted with lime in slow motion slaker to produce white liquor which is recycled to the digester for cooking of wood chips. Calcium carbonate sludge generated during conversion of green liquor to white liquor is fully recovered and burnt in energy efficient rotary Lime Kiln to produce lime of 89% purity, reused for causticizing of Green liquor. With the above closed chemical recovery system, 98 % of the cooking chemical is recovered, a global bench mark.

 Viscose Staple Fibre Manufacturing Process The basic raw material in the manufacture of Viscose Staple Fibre is Alpha Cellulose derived from wood pulp. The cellulose is converted into alkali cellulose by steeping the raw material in a solution of Caustic soda (around 18.0 %). The excess alkali is squeezed out and recycled. The alkali cellulose is allowed to mature and then converted into cellulose xanthate by treatment with Carbon-di-Sulphide. The xanthate is subsequently dissolved in dilute Caustic solution to get the desired viscosity. The resulting solution known as “Viscose" is filtered by Grasim Continuous Filters, deaerated and stored under careful conditions. The viscose is extruded under pressure into fine jets through spinnerettes into spinning bath solution containing Sulphuric Acid, Sodium sulphate. The filaments so formed are cut to desired length and taken to CS2, Recovery Trough where CS2 liberated is condensed and recovered and the fibre free from CS2 is taken to after treatment Section. The cut filaments are first washed free of acid with water and then washed free of sulphur. This is followed by washing with water and then bleached and washed. The fibre passes through a final stage of finishing and drying and is baled.

 Carbon Disulphide (CS2) manufacturing Process

For the manufacture of CS2, wood charcoal is first claimed to remove moisture and volatile matter and charged into an electric arc furnace. Molten sulphur is let in uniformly through the bed, when vapors of Carbon disulphide are evolved. The vapors of Carbon disulphide are condensed and the crude Carbon disulphide is refined and uncondensed. Carbon disulphide is recovered by absorption system. The exhaust gases are passed through Klaus Kiln plant for sulphur recovery and then scrubbed.

 Process description for Sulphuric Acid Manufacture

Sulphuric Acid is manufactured by Double Conversion Double Absorption (DCDA) process by burning sulphur in air to form sulphur dioxide, which is then catalytically converted to sulphur trioxide and absorbed in sulphuric acid in Absorption Towers to get sulphuric acid. Absorption towers are provided with packing and mist eliminator for minimizing acid mist carryover. The reaction is exothermic and the heat liberated is utilized for steam and hot water generation which are used in main plant.

M/s. Grasim Industries Ltd. 12 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

 Process Description of Sodium Sulphate (Na2 SO4)

The Spin bath used in the spinning process gets spent due to depletion of Sulphuric acid concentration by reaction as well as the addition of water from viscose. The reaction produces Sodium Sulphate. The spin bath is filtered and sent to recovery plant where it is fed to Multi Stage Flash Evaporators to remove excess of water, Sodium Sulphate is recovered by crystallization. The crystals of sodium sulphate are melted and the water of crystallization is evaporated. The wet salt thus recovered is then dried in a rotary drum dryer and bagged. (vii) Raw material required along with estimated quantity, likely source, marketing area of final products, mode of transport of row material and finished product. Table 5 Raw material requirement Existing Additional Total quantity Mode of S. Raw material quantity quantity after expansion Source transportation No. (TPA) (TPA) (TPA) & Distance Pulp Plant Govt. / farmers / plantations within 1. Wood 2,28,500 2,28,500 4,57,000 Road /300 km Karnataka & adjacent States 2. Caustic Soda 2,400 2,400 4,800 Karnataka / Tamil Nadu Road/460 km 3. Sodium Sulphate 1,900 1,900 3,800 Own Fibre Plant - 4. Sulphuric acid 1,500 1,500 3,000 Own Fibre Plant - Hydrochloric 5. 1,400 1,400 2,800 AP/Gujarat Road/385 km Acid 6. Sodium Chlorate 550 550 1100 AP, Gujarat/Karnataka Road/1150 km 7. Gaseous Oxygen 600 600 1200 On-site generation - 8. Sea shell 450 450 900 Karnataka / AP Road/220 km Hydrogen 9. 2,900 2,900 5,800 Maharashtra Road/708 km Peroxide VSF Plant Sea / Road 12700 / 708 km 10. RG Pulp 88,050 88,050 1,76,100 Captive + Overseas (only 17% of the requirement) 11. Caustic soda 47,700 47,700 95,400 From ABG company Road/556 km

12. Sulfuric acid 62,300 62,300 1,24,600 Captive - Carbon 13. 12,800 12,800 25,600 Captive - Disulphide Excel Fibre Plant (New Proposed) Sea / Road 14. Rayon Grade Pulp 36,865 36,865 Overseas 12700 / 708 km NA From ABG Company, 15. Caustic Soda 2,190 2,190 Road / 556 km Karnataka / Tamil Nadu

M/s. Grasim Industries Ltd. 13 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

N-methyl Morpholine Amines & Plasticizers Pvt. 16. 1,022 1,022 Road / 707 km N-oxide/ ionic Ltd., Mumbai liquid Twinkle Chemical Ltd., 17. Propyl Gallate 66 66 Road / 707 km Mumbai Hydrochloric 18. 7,556 7,556 AP/TN Road / 387 km Acid

Fuel Requirement: Table 6 Fuel requirement for VSF, Excel & Pulp Plant Total Mode of S. Existing Proposed Capacity Plant Particulars Unit Source transportation & No. Capacity Capacity after Distance expansion Coal (Indigenous, Linkage coal / 1. VSF Plant TPA 219000 219000 438000 By Rail / 900 kms Imported) / Imported coal Petcoke Linkage coal / By Rail / 900 2. Excel Plant Coal TPA Nil 109560 109560 Imported coal kms Captive (Through 3. Black Liquor TPA 1.9 Lac 1.9 Lac 3.8 Lac chemical - recovery Pulp Plant process)

By Road / 330 4. Furnace Oil TPA 4800 4800 9600 IOCL kms

Steam Requirement Additional Capacity Existing Total Capacity S. No. Particulars Unit Source Capacity Pulp VSF Excel Fibre after expansion Plant Plant Plant CPP & 1. Steam TPD 5900 2400 3500 1000 12800 Recovery Boiler Pulp Plant existing steam capacity: 2400 TPD & VSF plant existing steam capacity: 3500 TPD

(viii) Resources optimization/ recycling and reuse envisaged in the project, if any, should be briefly outlined. • The proposed installation of energy efficient twin roll presses in brown washing, hot stock screening, dewatering presses in bleaching, twin wire press in pulp drying will reduce power consumption and waste water discharge.

M/s. Grasim Industries Ltd. 14 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

• The proposed incorporation of multiple effect evaporator with higher steam economy will reduce steam consumption. Proposed increase in product black liquor solids concentration will improve steam generation from recovery boiler and thereby reduce purchase coal steam consumption. • Operation of energy efficient single drum recovery boiler will improve steam generation and thereby reduce coal steam consumption. • Use of advanced Churn machines for viscose preparation, new spinning machines, new Gensorb acid

plant, advanced CS 2 plant, CFBC boiler and diffused aeration system in ETP will further reduce the energy consumption in fiber process.

(ix) Availability of water its source, energy /power requirement and source should be given.

Water Requirement: The existing water requirement for the Pulp Plant is 36,000 KLD. The additional water required for the proposed expansion is 23,160 KLD. The existing water requirement for the VSF Plant is 18,670 KLD. The additional water requirement for the proposed expansion project is 16,240 KLD. The water requirement for the Excel Plant is 3,130 KLD. Source of water : Tungabhadra River.

Power Requirement:

Pulp Plant: The source of power for the Pulp Plant is recovery boiler for which black liquor generated during pulp washing process is used as a fuel. The existing power requirement is 10 MW. The additional power requirement for the proposed expansion project is 10 MW.

VSF Plant: The source of power for the VSF Plant is Captive Power Plant for which coal is used as a fuel. The existing power requirement is 20 MW. The additional power requirement for the proposed expansion project is 20 MW. Excel Fibre Plant: The power requirement for the proposed excel fibre plant is 10 MW for which coal will be used as a fuel. Source: as mentioned above

(x) Quantity of waste to be generated (liquid and solid) and scheme for their management/disposal

S. No. Section Waste Mode of disposal Pulp Plant 1. Pulp Mill Bleaching Centricleaner reject pulp Sold out to low quality fibre manufacturers 2. ETP Waste Pulp from primary clarifier Dried & burnt in coal fired boiler

3. Wood Chipping Process Saw dust Burnt in coal fired boiler 4. Lime Kiln Lime sludge 100% recycled in lime kiln to produce quick lime 5. ETP Biomass from secondary clarifier Dewatered & used as manure

M/s. Grasim Industries Ltd. 15 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

S. No. Section Waste Mode of disposal 6. Wood yard Wood waste Vermicomposting 7. Process plants FRP Waste Cement industry VSF Plant 8. CS2 & Acid Plant Charcoal churi Burnt in coal fired boiler 9. Spinning Tow waste Washed, dried and sold out to low quality fibre manufacturing units 10. Power Plant Fly ash Disposed off through brick/cement blocks manufacturers 11. ETP Organic sludge from primary & Dewatered & burnt in coal fired boiler secondary clarifiers 12. ETP Gypsum sludge Dewatered & sold out to cement block / cement manufacturing units 13. Na2SO4 recovery Graphite Rods Burnt in CPP boiler 14. Viscose, spinning, recovery Cooling Tower PVC Fills Sale to users and power plant 15. Process plants FRP Waste Cement industry Other wastes 16. Canteen Food waste Cattle feed 17. Packing Wooden waste Sale to users 18. IT and instruments Electronic Waste & used batteries Sold to authorized recyclers 19. Occupational Health Bio-medical waste Sent to authorized incineration unit Centre 20. Maintenance Metal scrap Sent to authorized recyclers

4.0 Site Analysis (i) Connectivity

 The site is well connected to NH-4 (~700 m), SH- 76 (~1.5 km) and SH- 25 (~2.0 km)

 The nearest railway station is Harihar Railway Station which is ~3 km from the plant site.

 The nearest airport is Hubballi which is ~117.65 km away from the plant site.

 The site is well connected with communication facilities like telephone, fax, wireless and telex and as such, no constraints are envisaged in this aspect.

 Area is having well developed infrastructure such as schools, colleges, roads, community centers, PHCs, medical facilities, shopping centres, banks, telephones, post offices etc.

(ii) Land from Land use and land ownership Existing plant area is 431.36 ha. No additional land is to be acquired for the proposed expansion project as the expansion will be carried out within the existing plant premises.

(iii) Topography Haveri district is situated in the western sector of the Karnataka state. To the East of the semi-malnad belt lies the undulated plain region called “Maidan Area”. It is characterized by isolated hills like Devagirigudda, Nelogal Gudda, Siddapur Gudda and Malthihalli Gudda. The isolated hills are 609 mts.

M/s. Grasim Industries Ltd. 16 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

above sea level. The whole ranges from 527 to 610 mts. above sea level. The maidan region extends over the talukas of Haveri, Ranebennur, Savanur and Eastern part of Byadagi. The western portion is relatively rich in flora and fauna. The district consists of various types of crystalline schists and some acid and basic intrusive rocks commonly found in other part of the state. The Tungabhadra river system covers about one- third of the total area of the district, which flows through along the eastern borders of talukas of Hirekerur, Ranebennur and Haveri. The Tungabhadra stretch is almost uniformly masked by a stony landscape derived from a granitic out scrap.

(iv) Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ)), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ. In case of notified industrial area, a copy of the Gazette notification should be given.

S. No. Particulars Details 1 Nearest Town / City Harihar (~2.5 km in SE) NH-4 (~700 m in SW direction) Nearest National Highway / State 2 SH-76 (~1.5 km in SSE direction) Highway SH-25 (~2.0 km in East direction) 3 Nearest Railway station Harihar Railway Station (~3 km) Hubballi Airport (~117.65 km) 4 Nearest Airport Air Strip (adjacent to the plant boundary) National Parks, Wildlife Sanctuaries, Ranibennur Black Buck Sanctuary (~4.5 km in NNW 5 Biosphere Reserves, Reserved / Protected direction) Forests within 10 km radius Tunngabhadra River (~200 m in East direction) 6 Water Bodies (within 10 km radius) Syagali Halla (~2.0 m in SSE direction) Karala Halla (~7.5 km in NE direction) 7 Seismic Zone The project area falls in Seismic Zone II.

(v) Existing Infrastructure The existing infrastructure includes following facilities- 1. VSF plant 2. H2SO4 Plant 3. CS2 Plant 4. Na2SO4 recovery plant 5. Pulp Plant 6. ETPs (separate ETPs for pulp and VSF plant) 7. STP in colony 8. Township 9. Hospital etc.

M/s. Grasim Industries Ltd. 17 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(vi) Soil Classification

The soil is predominantly Sandy Clay and Sandy Clay Loam. The prevailing soil type is red in the southern part and black in the northern part. The landform is characterized by rolling lands. The erosion class is moderate and drainage class moderately well to well drain.

(vii) Climatic data from secondary sources

Rainfall in the region is about 50 mm to 60 mm. The average maximum temperature during summer is 37.9 oC and minimum temperature during winter is 10.6 oC.

(viii) Social Infrastructure available

Nearest City is Harihar. There are primary schools, dispensaries, small hospitals, places of worship in nearby area of the plant site.

Most of the villages are electrified. Telephone, Medical facilities and Telegraph facilities are available in the nearby towns. Almost all the villages in the buffer zone are electrified. L.T. power is being supplied for drawing water from a large number of tube wells sunk around the important village of the buffer zone, for irrigation purpose.

5. Planning Brief

(i) Planning Concept (type of industries, facilities, transportation etc.) Town and country Planning/Development authority classification.

Proposed industry is a viscose staple fibre manufacturing unit which also manufactures pulp on site. Transportation of raw materials and final product is being/will be done via existing road and rail network.

The industrial complex is well planned including green cover, separate residential area with infrastructure facilities, roads, drains, drinking water and sewage treatment system. The industry has been continuously improving and creating required facilities for the unit and its surrounding community. The focused areas in Community & Social Development initiatives are Education, Health Care Services, Infrastructure Development, and Sustainable Livelihood & Social Welfare. The unit is committed to develop green coverage. In continuation with the green cover programme, the industry has planted 1.28 Lacs of Trees. The total greenbelt area in and around the plant premises is 107 ha.

(ii) Population Projection

Temporary influx of people will be there as the managerial and supervisory staff will be generally outsiders.

(iii) Land use planning 431.36 ha is the total land owned by Grasim Industries Ltd. including plant area, township and other facilities. Out of the total land, 266 ha area is covered by the Pulp and Fibre Plant. Out of the total plant area i.e. 266 ha, 96 ha (36% of the plant area) has been developed as greenbelt. To increase the density of existing greenbelt and plantation along the road side.

M/s. Grasim Industries Ltd. 18 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(iv) Assessment of infrastructure demand (Physical & Social)

Grasim Industries has assessed the demand of infrastructure (Physical & Social) in nearby area of the plant which is developed under corporate social responsibilities programs.

(v) Amenities/Facilities

Grasim Industries has developed the Amenities/Facilities in nearby area of the plant as per requirement of local people of the nearby area under corporate social responsibilities programs.

6) Proposed Infrastructure

(i) Industrial Area (processing area)

Total existing plant area is 431.36 hectare out of which 107 has been developed as green belt. No additional land is to be acquired as the proposed expansion will be done within the existing plant premises.

(ii) Residential Area (Non processing area) Existing housing facilities will meet the requirements for the proposed expansion project.

(iii) Green Belt Out of the total plant area i.e. 266 ha, 96 ha (36% of the plant area) has been developed as greenbelt. To increase the density of existing greenbelt and plantation along the road side.

(iv) Social Infrastructure Proposed expansion project will result in growth of the surrounding areas by increased direct and indirect employment opportunities in the region including ancillary development and supporting infrastructure.

The installation of proposed plant will lead to the development of certain local ancillary facilities and consequent employment opportunities. Further the proposed expansion will also lead to the enhancement of existing market, trade centers, activities etc.

In addition to the above, Grasim industries has a track record of engaging the local communities and extending several social services to the nearby villages.

(v) Connectivity

 Nearest National Highway is NH-4 which is ~100 m in SW.  The nearest railway station is Harihar Railway Station which is ~2.46 km in SE direction from plant site.

 The nearest airport is Hubballi which is ~117.65 km in NW direction.

 The site is well connected with communication facilities like telephone, fax, wireless and telex and as such, no constraints are envisaged in this aspect.

 Area is having well developed infrastructure such as schools, colleges, roads, community centers, PHCs, medical facilities, shopping centres, banks, telephones, post offices etc.

(vi) Drinking Water Around 200 KLD of water will be required for drinking purpose.

M/s. Grasim Industries Ltd. 19 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

(vii) Sewerage system Sewage Treatment Plant of 200 MLD capacity is being used in township / will be used for the treatment of domestic waste water. In industry the sewage is being treated along industrial effluents as per the stipulation given by State Pollution Control Board.

(viii) Industrial Waste management Solid waste management in Pulp Plant:

• Saw dust generated during chipping process is collected and reused in coal fired boiler. • Waste pulp from primary clarification at Effluent Treatment Plant is burnt in coal fired boiler. • Centricleaner rejects pulp is sold out to low quality fibre manufacturers • 100% of the lime mud will be recycled.

Solid waste management in VSF Plant:

• The ETP sludge (organic in nature) is dewatered and burnt in coal fired boiler. • The gypsum sludge from ETP is sold out to cement block manufacturing units. • Charcoal churi & semi burnt sulphur mass is further used to burn in coal fired boiler • The tow waste is sold to low quality fiber manufacturing units.

(ix) Solid Waste Management Pulp Plant

• Saw dust generated during chipping process is collected and reused in boiler. • Waste pulp from primary clarification at Effluent Treatment Plant is burnt in boiler. • 100% of the lime mud will be recycled. VSF Plant

• Two stage sedimentation type lime mud clarification system has reduced the loss of alkali and ensured 100% recycling of lime mud • The ETP sludge (organic in nature) is dewatered and burnt in boiler • The gypsum sludge is sold out to cement block manufacturing units • Charcoal churi & semi burnt sulphur mass is further used to burn in coal fired boiler • The tow waste is sold to low quality fiber manufacturing units

(x) Power requirement and source Pulp Plant: The source of power for the Pulp Plant is recovery boiler for which black liquor generated during pulp washing process is used as a fuel. The existing water requirement is 10 MW. The additional power requirement for the proposed expansion project is 10 MW which will be sourced from an additional recovery boiler of capacity 100 TPH with 10 MW Turbine VSF Plant: The source of power for the VSF Plant is Captive Power Plant for which coal is used as a fuel. The existing power requirement is 20 MW and the additional power requirement for the proposed expansion is 20 MW which will be sourced from a new boiler with 30 MW Turbine.

M/s. Grasim Industries Ltd. 20 Proposed expansion of Pulp Plant, VSF Plant, Sulphuric Acid Plant, Carbon Disulphide plant and Captive Power Plant along with new Excel Fibre Plant At Village: Kumarapatnam, Taluka: Ranebennuru, District: Haveri, Karnataka Pre Feasibility Report

Excel Fibre Plant The power requirement for the proposed excel fibre plant is 10 MW for which coal will be used as a fuel. Source: as mentioned above

7.0 Rehabilitation and Resettlement (R & R) Plan

(i) Policy to be adopted (Central/State) in respect of the project affected persons including home oustees, land oustees and landless laborer (brief outline to be given)

Not Applicable

8.0 Project Schedule and Cost Estimates (i) Likely date of start of construction and likely date of completion (time schedule for the project to be given) The project will be started only after obtaining necessary statutory approvals i.e. Environmental Clearance and consents.

(ii) Estimated project cost along with analysis in terms of economic viability of the project

 Total capital cost of the project - Rs. 2550 Crores • Debottlenecking (Fibre Plant) - Rs. 10 Crores • New Installations - Rs. 2540 Crores

 Cost for Environmental Protection Measures- • Capital Cost - Rs. 600 Crores • Recurring Cost - Rs. 6.0 Crores / annum.

9.0 Analysis of proposal (final recommendations) (i) Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area. Proposed project will result in growth of the surrounding areas by increasing direct and indirect employment opportunities in the region including ancillary development and supporting infrastructure. Special emphasis on Financial and Social benefits will be given to the local people including tribal population, if any, in the area. Development of social amenities will be in the form of medical facilities, education to underprivileged and creation of self-help groups. Karnataka state will get revenues in terms of taxes and local people will get direct & indirect employment. Business opportunities for local community will be available like transport of cement to market, fly ash transport from power plant, maintenance & house-keeping contract work etc.

M/s. Grasim Industries Ltd. 21