Prefeasibility report

New 60 KLPD molasses/B- heavy/Sugarcane juice based distillery By

Bilagi Sugar Mill Ltd At Village Badagandi, Taluk - , Dist. ,

Prepared by

MITCON Consultancy & Engineering Services Ltd. NABET accrediated consultant Environment Management and Engineering Division Behind DIC Office, Agri College Campus, Shivajinagar, Pune 411 005, Maharashtra (), Tel.: +91- 020-66289400

Prefeasibility Report

Contents 1.0 Executive summary ...... 3 2.0 Introduction ...... 3 3.0 Project Description ...... 5 4.0 Site analysis ...... 8 5.0 Planning in Brief ...... 10 6.0 Proposed infrastructure ...... 10 7.0 Rehabilitation & resettlement plan ...... 12 8.0 Project schedule and cost estimate ...... 12 9.0 Analysis of proposal ...... 12

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Prefeasibility Report

1.0 Executive summary

Bilagi Sugar Mill Ltd., proposes to set up a 60 KLPD capacity distillery to produce RS/ENA/ethanol, adjacent to the existing sugar plant located at Road, Village Badagandi, Taluk - Bilagi, Dist. Bagalkot, Karnataka.

The proposed project will produce fuel ethanol from own molasses and optimum quantity of diverted B-heavy molasses, as well as procured molasses from nearby sugar factories as raw material. The steam and power requirement for the proposed plant will be made available from the new slop fired incineration boiler & condensing turbine.

2.0 Introduction

Bilagi Sugar Mill Ltd (BSML) is located at Girisagar Road, Village Badagandi, Taluk Bilagi, Dist. Bagalkot, Karnataka. Present sugar factory capacity is 5000 TCD capacity & 30 MW bagasse based co-generation plant. Bilagi Sugar Mill Ltd, now proposes to set up a 60 KLPD capacity distillery, in the existing sugar premises.

2.1 Project proponent Bilagi Sugar Mill Ltd (BSML) is a company registered in the State of Karnataka, under the Companies Act, 1956 bearing certificate of incorporation number U15429KA2001PLCO29788 dated -19-11-2001. Bilagi Sugar Mill Ltd (BSML) is a public limited Company, engaged in manufacturing of sugar. BSML is situated at Girisagar Road, Village Badagandi, Taluk Bilagi, Dist. Bagalkot, Karnataka with sugar plant of 5000 TCD capacity & 30 MW bagasse based co-generation plant. BSML has undertaken 1st trial crushing season in 2005-06. BSML has crushed 3.60 Lakh MT of cane during crushing season 2015-16.

Bilagi Sugar Mill Ltd., is promoted with keen and active interest taken by Shri. S. R. Patil, who is MLC in Karnataka Legislative council from last 20 years and presently, he is the minister of ITBT, Science & Technology and Planning & Statics in the Government of Karnataka. BSML is set up by the promoters during 2004. Since incorporation, the company has evolved from its experience & streamlined its business operations. With robust systems, company

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Prefeasibility Report has always relied on experienced professionals & board of directors to predict & plan business strategies, to create wealth for its stakeholders. The proposed ethanol project implementation will be directly under the Board of Directors, ably assisted by Shri K. A. Aziz, Executive Vice President. Shri Aziz has long, varied & rich experience of successfully implementing and operating a no. of sugar mill projects, most efficiently. BSML already has appointed a technical / managerial team of highly qualified engineers, contract & arbitration experts, agricultural officers and managerial personnel for implementation and operation of the captioned integrated project.

2.2 Need of the Project The proposed project will produce fuel ethanol from own molasses and optimum quantity of diverted B-heavy molasses, as well as procured molasses from nearby sugar factories as raw material. The steam and power requirement for the proposed plant will be made available from the new slop fired incineration boiler & condensing turbine. The ethanol production and consumption in India has been increasing over the years as predicted by Indian Sugar Mills Association (ISMA), Alcohol has assumed very important place in the country’s economy. It is vital raw material for a number of chemicals. It has been a source of large amount of revenue by way of Excise Duty levied by State Government. Ethanol has a potentiality as fuel in the Form of “power alcohol” for blending with petrol in the ratio of 20:80. This trend is continuing and will continue in view of the fact that potable liquor has larger revenue generating potential for the Governments. The demand for alcohol will always be there for industrial purposes. Further the use of alcohol in automobile fuel will enhance the demand for alcohol. Other than the above mentioned major requirement, alcohol is also being used in the production of many downstream chemicals including drugs, polymers, plastic, etc.

2.5 Employment generation due to project The total direct employment potential of the proposed distillery is about 80-85 people. However, the commencement of this industry will create direct and indirect employment opportunities to more than 500 persons in terms of factory employment, transportation, vehicle maintenance, petty shops etc.

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Prefeasibility Report

3.0 Project Description

3.1 Type of the project The proposed project is new 60 KLPD molasses/B- heavy/ Sugarcane juice based distillery in the existing sugar factory premises.

3.2 Location of the project The proposed distillery will be located at survey. no. 83/2,83/1,82/2,82/1,81/3,81/2,81/2., village Badagandi, Taluk - Bilagi, Dist. Bagalkot, Karnataka For the present study, an area covered in 10 Km radius from the project location has been considered. Present Sugar unit is geographically located at 16.356214° N & Longitude 75.666953° E project site and the 10 km radius study area falls in the survey of India Toposheet no. 47 P / 11, 47 P / 15.

Figure 1: Map showing general location of the proposed project

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3.3 Details of the alternate sites Proposed project will be located in existing sugar factory premises. Hence, no alternate sites have been examined. 3.4 Size and magnitude Size and magnitude of the project is given in Table 1. Table 1: Project in brief

Sr. Particulate Description No. 1. Name of the proponent Bilagi Sugar Mill Ltd 2. Project New 60 KLPD molasses/B- heavy/ Sugarcane juice based distillery 3. Location of the project St. no. 83/2,83/1,82/2,82/1,81/3,81/2,81/2., village Badagandi, Taluk - Bilagi, Dist. Bagalkot, Karnataka 4. Land requirement For proposed distillery 15.24 acres 5. Proposed Product RS / Ethanol/ENA :60 KLPD 6. Operation days Sugar plant : 180 days/ annum Molasses based distillery / ethanol : 300-330 days/ annum 7. Raw materials # Raw Material Unit Qty For total expanded Molasses based distillery / Ethanol Plant (65 capacity KLPD) 1 Molasses (FS- 42%) TPD 262 2 Nutrient kg/D 60-65 3 TRO Kg/D 600 4 Sulphuric acid Kg/D 97.5 8. Total water requirement Total fresh water requirement for proposed distillery will be 600 CMD. It will be sourced from Almatti dam (). 9. Electricity requirement 2.5-3 MW (Operational) 10. Steam Total steam requirement for integrated project 22- 24 TPH 11. Fuel Concentrated spent wash : 188 Cu. M/day Coal: 47 TPD (Slop: 75 %, Coal: 25 % 12. Boiler Incineration Boiler 25 TPH , for 60 KLPD Molasses based Distillery 13. TG 2.5-3 MW 14. DG - 15. Effluent treatment system Distillery units: Spent wash concentration in (capacity) multiple effect evaporator system and then mixing

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Prefeasibility Report

Sr. Particulate Description No. with support fuel as coal in the boiler, for achieving Zero Liquid Discharge (ZLD). Evaporated process condensate and distillery spent lees shall be treated in Condensate Polishing unit and polished condensate shall be recycled back to process, which helps to reduce fresh water requirement. 16. Man power During Construction: 50 Nos. During Operation : 80-85 Nos. 17. Total project cost 98 Cr. 18. Total cost for EMP 1.8 Cr.

3.5 Process description

Molasses Dilution Spent lees recycled in process/cooling tower Activated

Yeast Fermentation

Spent wash Steam Multi-Pressure and Spent Distillation lees

Recycle to Spent wash treatment fermentation through RS/ENA/Ethanol MEE & Incineration boiler Condensate Polishing Storage Condensate Unit (CPU)

3.7 Resource Optimization / recycling and reuse Spent wash generated during the process of distillation will be concentrated in multiple effective evaporators and then it will be incinerated in spent wash fired boiler. The condensate generated during the process of Multiple Effective Evaporators will be reused in the process consequently decreasing the net water requirement.

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Prefeasibility Report

3.8 Availability of Water The total water required for the 60 KLPD distillery is 600 CMD and it will be taken from the water is drawn from Almati Dam (Krishna River) flowing at a distance of 6.0 km (nearest boundary) in north. Permission from the same is available with factory.

3.9 Quantity of waste generated Wastes generated during whole process are  Process condensate recycled back in process and cooling tower makeup after treatment in CPU.  Spent lees- recycled back in process and cooling tower makeup  Boiler and cooling tower blow down- Gardening  Concentrated spent wash – Fuel for incineration boiler

3.10 Schematic representation of the feasibility drawing which give information of EIA purpose

Molasses based distillery 60 KLPD)

Molasses based Distillery: 5(g) Cat. A (All molasses based distillery)

ToR application (Form I) & Pre- feasibility study To MOEFCC

4.0 Site analysis 4.1 Site connectivity Details of connectivity towards proposed site is given below Road National Highway 124 is 1.98 km away from factory Railway Railway Station: Mugalalli Halt 17.5 km in SE Air Belagavi Airport 124.36 km in SW Nearest town/city Town/city : Bilagi 5 km

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4.2 Land form, land use and land ownership The proposed project will be located in existing sugar factory premises and land is for industrial use. Total area required for proposed distillery 15.24 acres. 4.3 Topography The topography of the land is flat with some undulations. Topo-sheet is attached separately with ToR application.

4.4 Existing land use pattern Existing land is vacant plot and it is under for industrial purpose. There is no any national park, wild life sanctuary and an eco-sensitive area comes in 10 km radius of the proposed project location.

4.5 Existing Infra structure Proposed plant will be located in the existing sugar factory premises. Hence the maximum resources like water, power and road connectivity are available.

4.6 Soil classification District comprises Red sandy soil, red loamy soil & black cotton soil

4.7 Climatic condition The climate is warm and dry throughout the year and rainfall is scarce. receives the lowest rainfall annually in Karnataka. The average rainfall in the region is approximately 318 mm annually. The months of September and December account for about 52% of the total annual rainfall. Bagalkot is devoid of large canopy tree vegetation; the region is semi-arid. The months of January and February are dry and cool. The month of April is the hottest with mean daily maximum temperature being above 30°C. However, daily temperatures may go above 40°C.

4.8 Social infrastructure available Social infrastructure like community center, hospital, and electricity is available in the area.

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Prefeasibility Report

5.0 Planning in Brief 5.1 Planning Concept The proposed project is integrated with existing sugar industrial complex with facilities to manufacture white sugar and power 5.2 Population projection Factory will require additional 80-85 people for operation of proposed distillery. Manpower requirement during construction will be 50. Skilled and unskilled labors and supervisory staff are available within the vicinity of the industry. The company has a policy of providing residential accommodation on-site for the essential employees.

5.3 Land use planning Proposed distillery will be located in 15.24 acre. The land is situated adjacent to the National Highway 218 ( Hubli-Bijapur) Land use planning of the proposed project is given below,  Total Plot Area – 15.24  Proposed 60 KLPD Distillery 15.24 acres.  Proposed green belt area is 5.0 (33% of total plot area) acres.

5.4 Amenities/Facilities Facilities like canteen, rest rooms, and recreation facilities will be provided for the proposed project.

6.0 Proposed infrastructure 6.1 Industrial area The major plant & machineries required for the proposed project are Fermentation section, Distillation section, Steam condensers, Air compressor, Incineration Boiler, Storage section, Multiple Effect Evaporation Section, Raw water treatment plant, Fire protection equipment’s, Laboratory instruments, Condensate polishing unit, Electrostatic precipitator, etc.

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6.2 Residential area Facilities like canteen and rest room will be provided in the proposed project. Local labor from nearby villages will be hired in project activity.

6.3 Green belt Proposed greenbelt area is around 5 acres (33% of total proposed distillery area). Greenbelt will be developed in proposed project premises.

6.4 Social Infrastructure Factory will identify the need of the villagers and execute the CSR activity.

6.5 Drinking water management Drinking water will be supplied through with proper water treatment system.

6.6 Sewerage system Existing domestic waste water (sewage effluent) is treated in existing ETP.

6.7 Industrial waste management The spent wash generated from distillery unit will be concentrated in Multiple Effect Evaporator system to concentrate effluent up to 55 to 60 percent solids. Then concentrated Spent wash and it will be incinerated in Boiler using coal as supplementary fuel to generate power simultaneously achieving achieve zero discharge. It is proposed to store concentrated spent wash during emergency and repair & maintenance of boiler unit.

6.8 Solid waste management  Spent oil and grease mixed with bagasse & burnt in boiler  Yeast sludge mixed with spent wash and incinerated in the boiler or used as manure.  Ash generated will be given to brick manufacturers.

6.9 Power requirement Total power required of proposed project will be 2.0-2.5 MW.

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7.0 Rehabilitation & resettlement plan No rehabilitation or resettlement plan is required as proposed plant will be located in the existing sugar factory premises.

8.0 Project schedule and cost estimate The total cost of the project is estimated about Rs. 98 Cr. The project cost estimates include all expenses to be incurred towards the entire project for Land & land development, civil, building / structure, plant & machinery, preliminary & pre-operative and other expenses, contingencies, plant & machinery, margin money of working capital. Environment management cost for the proposed project will be around 1.8 cr.

9.0 Analysis of proposal Raw materials (Sugarcane, grains) are available in Tahsil/District. Surrounding areas good Agro –climatic zone. Area comes under traditional Cane & cereals growing area. Good Market potential in State in general and in India particular. Treated as priority sector project Government appreciates this venture which is in rural backward area/region. Proposed project will help to increase the socio-economic status of the local people as well as provide the stability to the existing sugar factory. Further it helps to uplift the rural mass. The industry will be located in the rural backward region of the state and has a good scope for development of sugarcane with suitable climatic conditions and assured source of underground and surface water. At present there are few sugar industries in the region. Sugarcane cultivated in the region is presently transported through 30 to 60 km. As compared to other crops sugarcane cultivation gives higher economical returns to the farmers. There is good potential to develop more than 20,000 hectares of sugarcane cultivable land in about 20 km distance from the proposed site. Hence, with the proposed industry more agricultural land would be brought under sugarcane cultivation and it benefits the farmers in the local region. The establishment of the integrated sugar industry will thus meet the national interest of economic power and food through sustainable development. The beneficial impact of proposed factory plant on the civic amenities will be substantial after the commencement of the project activities. The basic requirement of the community needs will be strengthened by extending educational facilities, health care, building, and strengthening of existing roads. The living standards of the nearby villages will be improved.

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The construction of new roads and improvement in existing roads in the influential area will enhance the transportation facilities. With improved transportation facilities, there is always scope for development.

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