PRE FEASIBILITY REPORT

FOR OBTAINING ENVIRONMENTAL CLEARANCE

For the Proposed Synthetic Organic Chemicals Manufacturing Unit of

M/s. AARADHYA INDUSTRIES

Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: , . Contact No.: 9909002268 email: [email protected]

[email protected]

Prepared By: T. R. ASSOCIATES

A‐401, S.G. Business Hub, B/w Sola Bhagwat & Gota Over Bridge Near Umiya Campus, S. G. Highway, Ahmedabad 380060 Contact No.: 98253 71099 email: [email protected]

OCTOBER 2018

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1. Introduction

M/s. Aaradhya Industries is a partnership firm proposing to set up a Synthetic Organic Chemicals manufacturing unit at Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat.

2. Project Proponent and their back ground

Details of Partner are as given below.

Sr. Educational Name of Partner Address Experience No. Qualification 7 Year In Kanani Ratilal “Aadhya”, 1,samrudhi society, b/h. 1 B.A. Electrical Ramjibhai Aalap green city, raiya road, Rewinding Shop 6 Year Gadara Ashvin Village: Dhrangda, SO. Soyal, Dist. Experience In 2 M.A Kanjibhai , Gujarat. Special Chemical 2 Year Kanani Vivek Village: Hadiyana,Ta. Jodiya, Dist. Experence In 3 B.E. Ramnikbhai Jamnagar, Gujarat‐361011. Special Chemicals 2 Year In Kanani Vishal Sahkar Park Society,Nr. Shiv Pharma And 1 4 B.Pharm Hemrajbhai Temple, Lalpur, Dist. Jamnagar. Year Special Chemicals Desai Dhaval Ganeshpar,S.O. Virvav, Ta. Tankra, 5 B.SC No Experience Virambhai Dist.Morbi . 15 Year Address: 31, Ayodhya Row House, Experience In Dhameliya 6 M.SC. Nr. Swaminarayan Hospital, Dabholi Pharma & Mansukhlal Shivlal road, Surat City, Surat, Gujarat Speciality Chemicals

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3. Brief description of nature of the project:

M/s. Aaradhya Industries is proposing to manufacture Synthetic Organic Chemicals (Dye Intermediate Products‐ Ethyl Benzyl Aniline Sulphonic Acid, Para Nitro Toluene Ortho Sulphonic Acid and Resin Products‐ Melamine Formaldehyde Resin, Urea Formaldehyde Resin) at Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat.

The proposed products like Ethyl Benzyl Aniline Sulphonic Acid, Para Nitro Toluene Ortho Sulphonic Acid, Melamine Formaldehyde Resin and Urea Formaldehyde Resin falls under Category 5(f) as stated in Environment Impact Assessment Notification Published on 14th September, 2006. Further, the location of the proposed project is outside the notified industrial estate and it also not fall into small scale unit criteria described in EIA notification 25th June 2014. Hence, the project proponent has to obtain the EC from the Ministry of Environment, Forest & Climate Change, New Delhi. M/s. T. R. Associates (NABET and NABL Accredited EIA consultants) has been appointed to carry out EIA/EMP studies for obtaining Environmental Clearance.

The total land area of company is 10,117 m2 out of which 3,400 m2 (33.6 % of total land) area will be used for greenbelt development. The estimated cost of the proposed project is 2.50 Crore. Total budget allocation towards Environmental Management Facilities will be approx. Rs. 22.3 Lakhs. Total 25 persons will be employed including skilled persons, unskilled persons and office staff.

 DYE INTERMEDIATE PRODUCT:‐

The proposed products Ethyl Benzyl Aniline Sulphonic Acid (EBASA) mainly use in the manufacturing of Food colors i.e. brilliant blue and also use as Dye Intermediates. Para Nitro Toluene Ortho Sulfonic Acid (PNTOSA) intermediate use in dyestuffs, paper Industry, drugs etc. The total installed capacity of various dye intermediates in is estimated in the range of 2,65,000 MTPA to 2,80,000 MTPA as of FY2017 (FY refers to the period from April 01 to March 31) of which H‐acid and VS accounts for around 40% of the installed capacity and 60% of the domestic dyes intermediate production. The estimated production of dye intermediate during FY2017 is the range of 1,45,000‐1,55,000 MTPA.

On supply front, capacity addition of 23,000‐25,000 MTPA is estimated in the dyes segment over FY2018‐FY2019. Dyes intermediate segment has higher entry barriers for environmental clearance due to generation of large quantum of effluent and challenges involved in treating the same. Hence, CARE Ratings doesn’t envisage major capacity addition in the dyes intermediate segment over next three years except for balancing capacity of VS and H‐acid aggregating around 15,000 MTPA for efficient handling of effluent as well as for captive consumption and 4,000‐5,000 MTPA for other intermediates.

Significant increase in average sales realization of dyes intermediates and dyes had resulted in healthy profitability for industry players. Profitability though expected to be moderated in FY2018 by 150‐200 bps on account of stabilization of sales prices of dyes and intermediates

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(notwithstanding disruption of production in China) and increase in some of the crude linked raw material prices, it shall continue to remain healthy in the medium term. Furthermore, increase in effluent handling cost, prices fluctuations of intermediates and implementation of goods and service tax (GST) are expected to provide competitive edge to the organized integrated players over un‐organized dyes manufacturers lacking backward integration for intermediates.

 RESIN PRODUCTS:‐

Formaldehyde (37%) is used as raw material for resins, adhesive manufacturing. Resins are used predominantly in the wood products industry as adhesives. Growth of these resins is strongly correlated to construction/remodeling activity (which accounts for over 50% of consumption), and to a lesser degree, to the automotive industry.

The proposed products like Resins (Melamine Formaldehyde and Urea Formaldehyde) mainly used to produce Electrical Insulation Board and H.P. Decorative Laminated Sheets. These sheets have good market demand to develop the home and office for furniture.

The average production of laminated sheets has crossed approximately 130 million sheets inclusive of all thicknesses but the gap between installed capacity and demand is growing bigger. During FY 2011‐2012 phases that gap narrowed with sudden demand in lower thickness segment but later capacities came in place and the laminated sheets market became a pressure driven market. It is caution for any new comer that if he enters, he should be prepared for "More investments, more efforts and a long wait for margins".

The burgeoning market demands of urban and semi‐urban India are estimated at Rs 5,00,000 Crore. The demand‐supply gap has already attracted foreign players to India; and the e‐retailing boom offers immense business opportunities. But a more 15% of India's woodworking industry is organized. Its semi‐skilled carpenters, self‐styled interior decorators and small‐scale local manufacturers will need to be trained and organized to meet future market demands and exploit business opportunities.

Indian market is open and big that is why every kind of import is booming. Indian plywood and panel trade has become global place as the consumption of different imported ply panels are on the rise. Unlike before Indians are now welcomed by plywood manufacturer of China. Earlier India was a self‐dependent country for commercial or high quality plywood, but sharp drop in domestic manufacturing output has resulted in material sourcing from countries like Burma, Malaysia, Indonesia, China, Vietnam etc. Now Indian plywood market is somehow curtailed or competed by incoming panel products from China. Be it film face, decorative, laminate or MR plywood everything is now being imported partially or more and is sold. Indian industrialist must understand the fact that its no more a regional shift, it is a global shift. Indian technology should be upgraded and updated as per with international standards.

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The working environment in India has changed tremendously. Earlier the trade fairs were hardly particippated by foreign timber, lumber and plywood manufacturing companies where as now it is flooded with global suppliers.

There is only market of Resins in local market. Resins are intermediate products for manufacturing of Laminated Sheets. Resins are quite expensive for export. So we have only local market for sale.

4. Project Description

(i) Type of project including interlinked and interdependent projects: M/s Aaradhya Industries is proposing to manufacture synthetic organic chemical which are Ethyl Benzyl Aniline Sulphonic Acid (EBASA), Para Nitro Toluene Ortho Sulphonic Acid (PNTOSA), Melamine Formaldehyde Resin and Urea Formaldehyde Resin.

Location:

Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat.

Geographic Coordinates Latitude: 22°31'55.39"N Longitude: 70°43'12.00"E

Google image showing proposed project site is given below;

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Salient features in the surroundings area of the proposed site within 10 km radius are as follows:

Sr. No. Important Features Description 1 Location Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat.

2 GPS Coordinates Latitude: 22°31'55.39"N Longitude: 70°43'12.00"E 3 Temperature Range 19.7˚C to 33.8˚C (average)

4 Mean Sea Level 95 m 5 Annual Rain Fall 592 mm (average) 6 Nearest Railway Station Padadhari Railway Station – 16.3 km in SW direction 7 Nearest Airport Rajkot Airport – 25.4 km in SSE direction

8 Nearest Taluka Tankara – 13.5 km in NNE direction

9 Nearest Village Dhroliya – 1.2 km in NW direction

10 Nearest State Highway SH 120 – 0.56 km in SSE direction 11 Nearest National Highway NH 947 ‐ 32.2 km in NW direction 12 Nearest River/Water body Mitana Dam – 3.85 km in NE direction Virvav pond – 6.6 km in NW direction Demi River – 4.1 km in East direction 13 National Parks / Sanctuary None within 10 km radius.

(ii) Alternative Sites considered No other sites were selected.

(iii) Size or magnitude of operation

List of Proposed Products

Sr. No. Name of the Product Capacity (MT/Month) CAS No. Ethyl Benzyl Aniline Sulphonic Acid 1 100 100‐11‐1 (EBASA) Para Nitro Toluene Ortho Sulphonic Acid 2 100 121‐03‐09 (PNTOSA) 3 Melamine Formaldehyde Resin 100 9003‐08‐1 4 Urea Formaldehyde Resin 100 9011‐05‐6

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List of Raw Materials

Quantity Sr. No. Name of the Product Name of Raw Materials CAS No. (MT/Month) Ethyl Benzyl Aniline 60 92‐59‐1 Ethyl Benzyl Aniline 1 Sulfuric Acid (98%) 25 7664‐93‐9 Sulphonic Acid Oleum (65%) 55 8014‐95‐7 Para Nitro Toluene 65 99‐99‐0 2 Para Nitro Toluene Ortho Sulphonic Acid Oleum (23%) 13.5 8014‐95‐7 Melamine 40 108‐78‐1 Melamine 3 Formaldehyde (37 %) 59.5 50‐00‐0 Formaldehyde Resin Caustic 0.5 1310‐73‐2 Urea 39.5 57‐13‐6 Formaldehyde (37%) 59.5 50‐00‐0 4 Urea Formaldehyde Resin Caustic 0.5 1310‐73‐2 Acetic Acid 0.5 64‐19‐7

(iv) Project description with process details Details of manufacturing process are given in Annexure‐ 4 of Form‐ 1.

(v) Raw material required along with estimated quantity Details of raw material and its consumption are given in Annexure‐ 3 of Form‐ 1.

(vi) Resource optimization/ recycling and reuse envisaged in the project, if any, should be briefly outlined. Latest process technology will be adopted as available in market with optimum resources requirement with highest yield and less waste and pollution generation. In addition to this, all the feasible cleaner production technologies will be adopted.

(vii) Availability of water its source, Energy/ power requirement and source should be given. Energy/power requirement will be 100 HP which will be procured through Paschim Gujarat Vij Company Limited. The total water requirement will be 20.78 kl/day which will be fulfilled by own Bore well.

(viii) Quantity of wastes to be generated (liquid and solid) and scheme for their Management/disposal

 Hazardous Waste Generation and Disposal Details of hazardous waste generation and its disposal are given in Annexure‐ 5 of Form‐ 1.

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 Wastewater Generation and Disposal Facility Details of domestic as well as industrial wastewater generation and its disposal are given in Annexure‐ 7 of Form‐ 1

(ix) Schematic representations of the feasibility drawing which give information of EIA purpose

1. Site Analysis

(i) Connectivity

Nearest railway station Padadhari 16.3 km

Nearest state highway SH 120 0.56 km

Nearest airport Rajkot 25.4 km

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(ii) Land Form, Land use and Land ownership.

Proposed project site has already been procured by proponent and it iis an open area which is presently not being used for any purposes.

(iii) Existing Land Use Pattern

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(iv) Topography Map Prooject Site

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(v) Existing Infrastructure (1) Nearest railway station: Padadhari railway station is 16.3 km away from the project site (2) Nearest highway: State Highway 120 is 0.56 km away from the project site. (3) Nearest airport: Rajkot Airport is 25.4 km from the project site. (4) Power: 100 HP from Paschim Gujarat Vij Company Limited. (5) Water: Source of the water will be a borewell. (6) Basic amenities: Telephone, Bus Stop & Road facilities are available in nearby Village Dhroliya

(vi) Soil classification of In the central part of the district comprising Wankaner, Morbi, Paddhari, Lodhika, talukas, the soils are of clayey loam to clay type. They are moderately deep to deep and vary in colour from very dark brown to very dark greyish brown and reddish brown. The EC of the soils is generally less than 1.0 mmhos/cm and cation exchange capacity is between 40 and 60 me/100 gm of soil.

(vii) Climate data from secondary source General climate of the district is sub‐tropical and is characterised by three well‐defined seasons, i.e. summer ‐ from April to June, monsoon ‐ from July to September, and winter ‐ from October to March.

Temperature Highest temperature is 43 to 46 degree centigrade in summer and lowest temperature comes down to 7 to 15 degree in winter season.

Humidity The relative humidity is generally over 75 % in the south west monsoon. In the rest of the year the air is comparatively dry, especially in the afternoons. During the period of November to May the relative humidity varies between 40% and 50%.

Wind In the south west monsoon season, the wind direction is westerly to south westerly. In the post monsoon/cold season, wind blow from the north‐north east direction. In summer seasons the direction of the wind is mainly between north west and south west. The wind speed gradually increases from February and reaches the peak in July when the south west monsoon is most active. It again decreases from August and becomes low.

Rainfall More than 90% of the rainfall occurs during the monsoon. Rainfall during the winter and summer months is negligible. The average annual rainfall of the district is 500 mm and in the year 2017 it is 500 mm.

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(viii) Social Infrastructure available.

On account of availability in huge quantity and suitable climatic condition in the district has induced the growth of Ceramic industries hugely in Morbi taluka. At present more than 700 enterprises in around Morbi are Manufacturing Ceramic Tiles, Floor Tiles, Luster Wall Tiles, Glazed Wall Tiles, Vitrified Tiles, Porcelain Tiles, 2D, 4D Tiles, Spartak, Roofing and Mosaic Tiles. More than 100 enterprises are manufacturing specialized Vitrified Tiles which has great demand in the region as well as all over the country. It is also hub of digital and other types of watch and clocks manufacturing enterprises such as Ajanta, Samay, Sonera and Sonam which are World leaders in this sector. After 2002, Paper industries have grown rapidly as ancillary sector due to need of high quality craft grade papers very suitable for packing of goods. There are number of export‐import houses working in the district. Besides, many enterprises deal in consumer durables and engineering goods. Tourism also fetches significant income to the economy of the district as many visitors visit the district having historic values. Though the concept of avoiding risk factor for the Governmental regulations and process causes adverse effect and resulted in weakened industrial growth. Industrial Training Institutes, Productivity Development centre, District Industries Centre‐ Morbi and other Non‐Governmental organizations must come forward to promote more and more training programmes to increase and motivate the productivity of the labour force available in the district.

Marketing Potential:

There are well developed Market Yards in Morbi, Wankaner and Halvad taluka of Morbi district for the distribution of the agricultural produces. Farmers can accrue more competitive prices for their produce in these market yards by selling their produces. There is good infrastructure in the district for the sale of industrial goods and services manufactured and produced.

2. Planning Brief

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

It is chemical manufacturing industry located in Morbi district. Total available area is 10,117 m2 out of it 3,400 m2 area will be provided as a greenbelt area. Industry proposes to manufacture Ethyl Benzyl Aniline Sulphonic Acid (EBASA) and Para Nitro Toluene Ortho Sulphonic Acid (PNTOSA) used in Dye & Dye Intermediates. Other products are Melamine Formaldehyde Resin and Urea Formaldehyde Resin used in production of laminated sheets. So plywood industries and laminated sheets industries are interdependent on resin industries.

Further the proposed activities will take care of all the rules and regulation of statutory authority and provide the control measures and devices to achieve the standard norms. M/s. Aaradhya Industries Page 11 of 14

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(ii) Population

Description No. Total : 9,60,329 Person Population Male : 4,94,726 Person Female: 4,65,603 Person Population density 481 persons per sq. km. Village Population Total: 6,01,909 Person Urbanised Population Total: 3,58,420 Person Population increase rate N.A Male‐ Female ratio 1000 : 961 Scheduled Caste population 49,902 Person Scheduled Tribe population 4,036 Person

(iii) Land use planning (breakup along with green belt etc).

Sr. Particular Area (m2) No. 1 Built Up Area 1,295 2 Green belt area 3,400 3 Open/ Road area 5,422 Total 10,117

(iv) Assessment of Infrastructure Demand (Physical & Social).

Surrounded villages in 10 km area from the project site are having all the necessary physical and social infrastructure facilities due to agricultural activities, animal husbandry and industrial development within the area as well the nearby Tankara Taluka and Morbi City.

(v) Amenities / Facilities.

All the basic amenities/facilities such as power connection & power back‐up, drinking water, internal roads, water & wastewater treatment plant etc. will be provided.

3. Proposed Infrastructure a. Industrial Area Industry has provided 1,295 m2 built up area for industrial process/manufacturing activity which provides all needed facility including proper ventilation, safe handling system, etc.

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Education Facilities:‐Many Facilities for village schools like game kits, drawing kits, table‐chairs; school construction (classroom/toilet/school boundary), ceiling fans/ coolers or books for school library are proposed.

Health Facilities:‐Assistance to existing health facilities in nearest Hospital, for improvement in health facilities or services. e. Connectivity (Traffic and Transportation Road / Rail / Metro / Water ways Proposed project site is located adjacent to State Highway 120 and well connected to the internal roads and highways. The site is well connected to Tankara Taluka and Morbi City. f. Drinking Water Management In proposed project, out of 20.78 kl/day water approx. 2.8 kl/day water will be consumed for domestic purpose g. Sewerage System. Domestic wastewater 2.2 kl/day will be disposed of through Septic Tank/ Soak Pit System. h. Industrial Wastewater Management. Boiler Blow down, Washing water & bleed liqour will be collected in Collection cum Neutralization Tank. Effluent will be then taken to Nutch Filter/Filter press for sludge separation. Separated dried sludge will be collected, stored and disposed of at approved TSDF site. Filtrate water from Nutch Filter/Filter press will be taken in the Evaporator. We will use Single Stage Forced Circulation evaporator. Feed capacity of single stage evaporator will be 200 L/Hr considering worst scenario of effluent quantity. Hence we shall maintain Zero Discharge.

i. Solid/Hazardous Waste Management ETP waste + evaporation residue, spent acid, discarded bags/barrels are the main solid hazardous waste that will be generated from the proposed unit. Spent acid will be collected, stored into solid waste storage area and sold to approve Rule‐9’s spent acid management end user. ETP sludge will be collected, stored into solid waste storage area and disposed to M/s. Aaradhya Industries Page 13 of 14

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authorized TSDF site. Discarded bags and containers will be sold to approve authorized vendor. Bleed liquor will be collected, storage and disposal at ETP for further treatment. Used oil will be used within premises as a lubricant / sold to registered recycler.

j. Power Requirement & Supply / source Power requirement for the proposed project will be approx. 100 HP which will be obtained from PGVCL.

4. Rehabilitation and Resettlement (R & R) Plan Not applicable.

5. Project Schedule & Cost Estimates

(i) Likely date of start of construction and likely date of completion (Time schedule for the project to be given) Construction work is not yet started. Construction work for proposed manufacturing unit will be started only after obtaining EC.

(ii) Estimated project cost along with analysis in terms of economic viability of the project.  Total cost of the entire project is approx. 2.50 Crore.

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