PREFEASIBILITY REPORT for M/S Indian Cane Power Limited (Unit : Samsons Distilleries)

Prefeasibility Report

PREFEASIBILITY REPORT FOR M/S IndIAn CAnE POwER LIMITEd (UnIT : SAMSOnS dISTILLERIES)

For EXPANSION OF DISTILLERY CAPACITY FROM 60 KLPD TO 180 KLPD AND 2 MW/HR CAPTIVE STEAM BASED POWER GENERATION TO 9 MW/HR COGENERATION UNIT

at Sy No 233 & other Survey No’s, Duggavatti Village, Harapanahalli Taluk, Bellary Dist, Karnataka.

PREPARED BY

ENVIRONMENTAL HEALTH & SAFETY CONSULTANTS PVT LTD No. 13/2, 14st E Cross, Industrial Town, Agrahara Dasarahalli Rajajinagar, Bengaluru– 560044 QCI/NABET/EIA/ACO/18/00732

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) Prefeasibility Report

Table of Contents

1. Executive Summary ...... 1 2. Introduction of the Project/ Background Information ...... 2 3. Project Description ...... 5 4. Site Analysis ...... 15 5. Planning ...... 21 6. Proposed Infrastructure ...... 22 7. Rehabilitation and Resettlement (R&R) Plan ...... 23 8. Project Schedule & Cost Estimation ...... 23 9. Analysis of proposal (Final recommendation) ...... 23

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) Prefeasibility Report 1. Executive Summary

M/s Indian Cane Power Limited (Earlier M/s Samsons Distilleries Private Limited) was incorporated in 1993 to venture the projects to manufacture and deal alcohol and allied chemicals. During 2001 the industry has obtained Environmental Clearance for the expansion from 30 KLPD plant to 60 KLPD distillery. Subsequently the industry has taken Environmental Clearance from MoEF for the expansion from 60 KLPD distillery to 180 KLPD and 16.5 MW/hr captive steam based power generation. However due to financial constraints the proposal was not established. Hence, application, for additional 120 KLPD distillery with 7 MW/hr incineration boiler based power plant is being submitted.

Sl.No Items Particulars 1 Objective of the Expansion of present distillery of capacity from 60 Project KLPD to 180 KLPD and from 2 Mw/hr to 9 MW/hr captive steam based power generation. 2 Promoters M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 3 Total Investment , Rs Rs 154.68 Crores 4 Project location Sy No 233 & other Survey nos., Duggavathi village Harapanahalli taluk, Bellary district, Karnataka state. 5 Extent of land 460 acres. Expansion in the existing land. No additional requirement of land 6 Man Power Construction phase : 60 Operation phase : Additional 80 nos for expansion 7 Water demand and Source of water Tungabhadra. For Existing 60 Source KLPD distillery water requirement is 540 KLD (@ 9 KL/KL of alcohol). For expansion, about 1596 KLD of water is required and out of which freshwater demand is 600 KLD (@ 5 KL/KL of alcohol). Hence total fresh water requirement will be 1140 KLD for total 180 KLPD distillery. 8 Power supply The total power required for the proposed project 5 MW (Existing 2 MW/hr; expansion 3 MW/hr). 9 Latitude 14°37'47.11"N 10 Longitude 75°50'38.56"E

Comparison statement

SL Particulars Existing EC After expansion Difference NO 01 Promoters M/s Samsons Distilleries M/s Indian Cane Power Change in name Private Limited. Limited (Unit: Samsons Distilleries) 02 Location Sy No 233 Duggavatti Village Harapanahalli Taluk, Bellary District, Karnataka state.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 1 Prefeasibility Report 03 Objective Establishment of 60 KLPD Expansion of distillery Additional 120 distillery and 2.0 MW/hr unit from 60 KLPD to 180 KLPD and 7 MW/hr power generation KLPD and 9 MW/hr power captive steam based power generation 04 Plot area 264 acre 460 acres Expansion will be (However, in the EC within the existing obtained in 2008, 460 premises Acres was already acquired) 05 Total 80 160 Additional 80 No’s Manpower 06 Total 30 Crores 184.68 Crores Additional of Investment, 154.68 Crores Rs 07 Product Rectified Spirit : 60 KLD Rectified Spirit : 60 KLD Additional Ethanol :55 KLD Ethanol :155 KLD Ethanol :100 KLD ENA : 30 KLPD ENA : 30 Power: 7 MW/hr Power: 2.0 MW/hr Power: 9 MW/hr 08 Water Fresh water requirement: Fresh water requirement: + 600 KLD requirement 540 KLD. 1140 KLD and source Source : Tungabhadra Source : Tungabhadra 09 Spent wash 480 KLD 1220 KLD + 720 KLD generation 10 Spent wash Bio – methanation Both the methods Concentrated in treatment followed by bio- followed multiple effect composting evaporators and burnt in the incineration boiler. 11 Air pollution Mechanical dust collector Mechanical dust collector Additional ESP control & wet Scrubber & wet Scrubber and ESP management 12 ETP/ CPU - 1250 KLD Condensate, spentlees and other effluent generated will be treated in the CPU

2. Introduction of the Project/ Background Information

2.1 Identification of project and project proponent. The M/s. Samsons distilleries Pvt Ltd., was set up in the year 1993 for manufacture of Rectified Spirit, Neutral Spirit, Ethanol. The Samsons Distilleries Pvt. Ltd. presently named as Indian Cane Power Ltd. The distillery is situated near to Duggavatti village in Harapanahalli Taluk of Bellary District Karnataka state.

Mr. Shamnur is a well recognised leader in political field, Social services & also founder of M/s Shamnur Sugars Ltd. at Duggavatti, M/s Davangere Sugars Co Ltd. at

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 2 Prefeasibility Report Kukkuwada, Indian cane Power Limited. Uttur village, Mudhol taluk, Bagalkot district. Mr S.S Mallikarjun, Ex-Minister Karnataka State is youngest son of Dr.S. Shivashankarappa was instrumental in taking over the management of ICPL. List of directors of the company:

SI.No Name Designation 01 Shri. S S Mallikarjun Chairman 02 Shri. A S Niranjan Managing Director 03 Shri. S. Shivashankarappa Director 04 Smt. Prabha Mallikarjun Director 05 Shri. Subhash Chand Vidya Pahuja Independent Director 06 Shri. Premchand Independent Director

2.2. Brief description of nature of the project. The present proposal is expansion of present distillery unit from 60 KLPD to 180 KLPD with 9 MW/hr captive steam based power generation at Sy Nos.233 and others Duggavatti Village, Harapanahalli Taluk, Bellary District, and Karnataka State.

Renebennur Blackbuck sanctuary Protected Area is at a distance of 6.8 Kms from the project site. Aligilvada Reserve Forest, Nilagunda Reserve Forest, Jittinakatti South Reserve Forest are at a distance of 1.55 km, 7.65 km & 9.75 km from the project site respectively. The River Tungabhadra is 3.0 Km away from the project site and the State Highway (SH-25) is 2.25 Km from the project site.

2.3. Need for the project and its importance to the country and / or region.

India in 2016 achieved its highest ever ethanol market penetration, a gasoline blend rate of 3.3 percent on average across the country. Nevertheless, tight ethanol supplies through 2018 will limit further gains or even shrink that percentage of penetration. As a result, the ethanol blending program (EBP) is likely to expand but at a slower pace as demand from industry is partly met by imports, which are projected to grow from 500 million liters in 2017 to 600 million liters in 2018. For biodiesel, though the market penetration rate remains minimal, it will continue to grow if supported by a commercially viable strategy for building a sustainable biodiesel industry.

Bio-fuels have caught global attention in the last decade. They are renewable liquid fuels made from biological raw materials and have proved to be good substitutes for petroleum in the transportation sector. Being environment friendly, bio-fuels like ethanol and bio-diesel can help us to conform to stricter emission norms. Globally, several policies have given a fillip to bio-fuel production, leading to an increase in ethanol and bio-diesel output. In order to promote bio-fuels in India, a National Policy on Bio-fuels was formulated by the Union Ministry of New and Renewable Energy in 2009. In January 2013, the Union government launched the Ethanol Blended Petrol (EBP) programme, which made it mandatory for oil companies to sell petrol blended with at least 5 per cent of ethanol. The government initiated significant investments in improving storage and blending infrastructure. The National Policy on Bio-fuels had set a target of 20 per

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 3 Prefeasibility Report cent blending of bio-fuel by 2017. But the ethanol story has not yet succeeded in India.

2.4. Demand-Supply Shortfall in Ethanol supplies The EBP was initially launched by oil firms in 2003, with an objective of blending ethanol with petrol. Currently, the programme is being implemented in 21 states and 4 union territories with a target of achieving 5 per cent blending and progressively increasing to 10 per cent blending. According to the Union Ministry of Petroleum and Natural Gas, the approximate ethanol availability in India is 300 Crore litres. Of this, about 130 Crore litres goes into making liquor, which is non-negotiable for states as liquor is a major revenue source for them. That leaves around 170 Crore litres, out of which about 60 to 80 Crore litres goes into making chemicals. That leaves about 100 to 120 Crore litres for blending. From December 1, 2015 to November 30, 2016, 111 Crore litres of ethanol was procured by the Oil Marketing Companies (OMCs) which would be sufficient for blending of only 3.5 per cent. During 2016-17, because of drought in Karnataka and Maharashtra, overall sugarcane and ethanol production reduced considerably and only 66.5 Crore litres could be procured from suppliers. According to the Indian Sugar Mills Association (ISMA), sugar mills are set to more than double the supply of ethanol to fuel retailers for blending with gasoline in 2017-18. Ethanol manufactures and OMCs finalised supply contracts for a record 1.4 billion litres during 2017-18 (to realise 4 per cent blending), compared with 665 million litres a year ago. OMCs, however, find it hard to locally procure the sugar by-product at the government-fixed rates as state governments have imposed heavy taxes on ethanol, widely used in the liquor industry. Sugar mills also prefer to sell ethanol to distilleries, where they get a better price and quicker deals. According to Union government rules, 10 per cent of ethanol extracted from sugarcane can be mixed with petrol. However, till now, the government had not been able to achieve the target due to inadequate supply. Reasons for this include the non-uniform distribution of raw material throughout India and the lack of compulsory transportation and storage. Further, regulatory and policy approaches on excise duty, storage and transportation of ethanol and pricing strategy of ethanol compared to crude oil, are yet to be revised and implemented effectively.

Fluctuations in supply of raw material In India, sugarcane molasses are the major resource for bio-ethanol production and inconsistency of raw material supply is the major cause behind the sluggish response to blending targets. Since sugarcane production is cyclical, ethanol production also varies accordingly and does not assure optimum supply levels needed to meet the demand at any given time. The blending targets are partially successful in the years of surplus sugar production but unfulfilled when it declines. Drastic fluctuation in the pricing of sugar cane farming and sugar milling has resulted in mill owners being hugely indebted to farmers. Currently, Uttar Pradesh (UP)’s sugar mills have unpaid cane arrears owing to falling prices and a market glut and are saddled with huge quantities of molasses. It is reported that currently, UP sugar mills have unsold molasses of more than 2.62 million tonnes (MT) which have not been procured by liquor manufacturers. Permission is required for transferring molasses intending to produce ethanol and such applications are pending with the state excise department, which need to be processed urgently. As the domestic sourcing of ethanol is

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 4 Prefeasibility Report continuously failing to achieve the target, there is a need to look at other alternatives.

2.5. Imports vs. Indigenous production Not Applicable

2.6. Export possibility and Domestic / Export markets. Not applicable. Will be used for domestic use

2.7. Employment Generation (Direct and Indirect) due to the project. About 80 no of additional employees of all categories will be employed additional for the expansion proposal.

3. Project Description 3.1. Type of project including interlinked and interdependent project, if any. Not applicable The proposed project falls under the schedule 5(g) as per the EIA Notification dated September 14, 2006 and its amendments. There are no interlinked projects.

3.2. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 5 Prefeasibility Report

Location of the Proposed Project site on Toposheet with 10 Km radius demarcation (Toposheet No: 48N/14, 48N/10 Scale: 1:50,000)

Aerial View of the proposed project site

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 6 Prefeasibility Report

Existing plant photographs

Plant surrounding photographs

3.3. Details of alternative sites, considered and the basis of selecting the proposed site particularly the environmental considerations gone into should be highlighted.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 7 Prefeasibility Report Not applicable

3.4. Size & magnitude of operation

Currently 60 KLPD distillery is in operation. Additional 120 KLPD is proposed within the plant premises totaling the capacity of operation as 180 KLPD. Additional 7 MW/hr captive steam based power generation along with existing 2 MW/hr is also proposed.

3.5. Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc) should be given. Process Description This is a simple three step process namely molasses preparation, fermentation and distillation.

General Process of Alcohol Production: Molasses is the chief raw material used in India for production of Alcohol. Molasses contain about 50% total sugars, of which, 30 to 33% are cane sugar and the rest are reducing sugar. During the fermentation, yeast strains of the species saccharomyces cerevisiae, a living micro-organism belonging to class fungi converts sugar present in the molasses, such as sucrose or glucose to alcohol. Chemically this transformation for sucrose to alcohol can be approximated by the equation.

C12H22O11 + H2O = 2C6H12O6 Cane Sugar Glucose C6H12O6 = 2C2H5OH + 2CO2 180 = 2x46 + 2x44 Glucose Ethyl Alcohol Carbon-dioxide

The 180gm of sugars on reaction gives 92gm of alcohol. Therefore, 1tonne of sugar gives 511kgs of alcohol. The sq. gravity of alcohol is 0.7934. Therefore, 511kg of alcohol is equivalent to 511/0.7934=644 liters of Alcohol. During fermentation other by 7-products like glycerin, succinine acid etc. Are also formed form sugars. Therefore, actually 94.5% total fermentable sugars are available for alcohol, under ideal condition theoretically. Normally only 80 to 82% efficiencies are realized on plant. One tone of molasses containing 45% F sugars given alcoholic yield 255-265 litres per ton. For bringing out above biochemical reaction, we require proper and careful handling of yeast, optimum parameters like pH and temperature control and substrate concentration, which results into effective conversion of sugars to alcohol. For manufacture of yeast, separate equipment known as pure yeast culture apparatus is required. Initially, yeast is developed in the laboratory from the single cell yeast culture. In the laboratory, yeast is propagated in a test tube 10ml. Then it is transferred to a bigger flask of 500 ml flask, and transferred to 5litre flask containing the sterilized molasses solution. It is necessary to adjust the pH of the molasses solution in the range etc. Each stage of development of yeast propagation, namely 100 litres, 500 litres and 5000 litres. All these equipment’s are designed so

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 8 Prefeasibility Report as to facilitate boiling molasses solution in order to sterilize it and also cooing o bring it to the proper temperature of 33oC and letting in culture and taking out culture. Boiling, cooling introducing culture, Etc. is done in aseptic manner, i.e keeping the fermentation medium free from any kind of infection. Further, stages of yeast propagation are done in open tanks i.e pre-fomenter requires about 8 hours in order to build up necessary concentration of yeast in them. Finally, pre-fomenter is emptied in an empty fomenter, which is previously cleaned and kept ready. Dilute molasses solution is allowed to flow in this fomenter so as to fill it to its working capacity, say about one lakh litre.

The average efficiency of conversion of sugars in molasses to alcohol is 80 to 85% of theoretical value. All the sugars are not converted to alcohol during the process of fermentation because chemicals like glycerin; succinine acid, etc. are also produced by yeast during their metabolic process. Therefore, it is not possible to have 100% efficiency of conversion of sugars to alcohol. The average yield of alcohol from molasses is about 250 liters from 1 MT of molasses.

Recently, attractive developments have taken place in the field of fermentation and distillation whereby one can get high yield of 270 to 285 litres per ton of molasses. The next stage in the manufacture of alcohol is to separate alcohol from fermented wash and to concentrate it to 95% alcohol called as rectified spirit. For this purpose, method of distillation is employed. The distillation columns consists number of SIEVE plates where wash is boiled and alcoholic vapours are separated and concentrated on each place stage by stage.

Manufacturing process  The manufacturing process for molasses based ethanol consists of following.  Feed preparations  Yeast Propagation and continuous fermentation.  Multi-pressure Distillation with integrated spent wash evaporator  Stillage processing  Molecular sieve dehydration for Fuel Alcohol

Feed preparations and weighing Molasses stored in a storage tank is first weighed in a tank with load cells so that accurate quantity can be fed to the fermentation section. The weighed molasses then transferred from tank to the diluter in fermentation section where it is diluted with water and fed to the fermenter.

Yeast Propagation and continuous fermentation In this process we propagate the generally, marked, highly efficient yeast strain under aseptic conditions, in yeast culture vessel.

The ready yeast seed is then transferred from culture vessel to fermenter. The glucose in media gets converted to ethanol, in each of the 3 fermenters operating in continuous cascade mode. CO2 liberated during reaction is sent to CO2 scrubber for recovery of ethanol otherwise being lost in vent. The equipment is well de-signed to achieve enhanced efficiencies through better sugar/ yeast contact by shearing and mixing, efficient oxygen etc.,

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 9 Prefeasibility Report The sludge is separated from wash after fermentation in a wash settling tank with lamellar assembly and then concentrated in centrifugal decanter.

In cascade mode of operation the yeast is recycled by using centrifugal yeast separators and then acidified in yeast acidification tank. The yeast slurry is then reactivated and again sent to 3’d culture vessel.

Multi-pressure Distillation The fermentation wash containing Alcohol, non-fermentable solids and water is supplied to Distillation to separate the alcohol and other impurities, as a continuous flow. The distillation system is designed for premium quality extra neutral alcohol. The system details are as below.

The distillation system is designed for premium quality extra neutral alcohol. The system details are as below.

The system consists of 7 columns, namely CO2 stripper, Stripper column, Pre-reactor column, Extraction column, Rectification Column, Refining Column, Fusel Oil column.

Wash is fed to CO2 stripper column to remove CO2 gas present in wash. Alcohol is stripped off water in stripper column. The distillate from stripper column is fed to pre-rectifier column to remove most of fusel oil and the distillate from pre-rectifier column is fed to extraction column after dilution with DM water. In extraction column most of the high boiling impurities separate from ethanol in presence of water. The bottom ethanol water mixture is pre-heated by system condensate and spent lees before being fed to rectifier column. In rectifier column product rectifier spirit is taken out from top tray and fed to refining column where mainly methanol impurities are separated. Pure ENA is obtained at bottom, which is cooled and stored. The impure spirit from top of pre-rectifier column, extraction column, rectifier column and refining column are top and balance alcohol is recycled to pre-rectifier column. The alcohol containing fusel oil from pre-rectifier and rectifier column id also fed to fusel oil column.

The top vapors from stripper column, Extraction column and fusel oil column are condensed in evaporator for spent wash concentration. The rectifier column, fusel oil column and pre-rectifier column get heat from stream at 3.5 bar (g).

Rectification column and pre-rectifier column works under positive pressure. The top vapors from rectifier column are condensed in stripper column for giving heat to stripper re-boiler. Most of the other columns work under vaccum.

Stillage processing The spent wash at approximate 12.6 % w/w concentration from distillation is concentrated in a multi effect evaporator to approximate 55% w/w. This concentrated spent wash will then be burnt in the boiler along with biogas/rice husk/ coal to produce high pressure steam. The steam is then sent to turbine to generate

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 10 Prefeasibility Report electric power for its captive use in the industry. The exhaust steam from turbine will be utilized in evaporation and distillery plants.

Molecular sieve dehydration for fuel grade anhydrous alcohol Rectified spirit at Azeotropic concentration is pumped by a feed pump to the dehydration plant. The rectified spirit containing 95 % alcohol and 5 % water will first pass through feed economizer, then through a vaporizer cum super heater which will convert the rectified spirit feed to superheated vapors. The superheated va-pour will pass through a sieve column, which is already regenerated and pressurized to working pressure. All the water vapors present in vapor mixture are adsorbed in the column. Along with alcohol traces of alcohol are also adsorbed in the column. The Anhydrous alcohol vapors free from water vapors exhausted from the column are duly condensed in the re-boiler at the recovery column and is further passed through feed economizer to preheat the incoming feed and then to a final product cooler. After saturation of sieve column with water, the flow will be shifted to the next sieve column, which is already regenerated and pressurized. After completion of dehydration cycle, the sieve column saturated with water is regenerated by evacuation of adsorbed water and alcohol. The evacuated vapors are condensed. The condensed mixture of alcohol and water is then fed to a re-covery column, which enriches the stream back to azeotropic composition. This sequence of adsorption and regeneration of sieve column continues

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 11 Prefeasibility Report

Process Flow diagram of distillery (120 KLPD)

3.6. Raw material required along with estimated quantity, likely source, marketing area of final products, mode of transport of raw material and finished products.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 12 Prefeasibility Report

Other raw materials like DAP, Antifoaming agent, yeast culture, Urea, sulphuric acid will be procured from nearby dealers through trucks once in a month Similarly, Final products, Ethanol will be transported through tankers, Yeast sludge and CPU sludge (20 T/d) will be mixed with compost, boiler ash (38 T/d) will be sold to brick manufacturers, CO2 gas (89 T/d) will be cleaned and processed as dry ice or liquid CO2 Mass balance of the proposed expansion is as attached:

Mass balance for the proposed expansion

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 13 Prefeasibility Report 3.7. Resource optimization/recycling and reuse envisaged in the project, if any, should be briefly outlined.

The condensate, spentlees generated in the process will be used in the process thereby reducing the freshwater requirement.

3.8. Availability of water its source, Energy/power requirement and sources should be given.

Water Requirement

Source of water Tungabhadra. For Existing 60 KLPD distillery water requirement is 540 KLD (@ 9 KL/KL of alcohol). For expansion, about 1596 KLD of water is required and out of which freshwater demand is 600 KLD (@ 5 KL/KL of alcohol). Hence total fresh water requirement will be 1140 KLD for total 180 KLPD distillery.

Power Requirement DG sets are also used as a backup, existing capacity of DG sets are 2 x 380 KVA & 320KVA, for expansion 1000 KVA capacity DG set is required. The total power required for the proposed project will be 3100 kwh, for construction phase. During operation phase of the project, total 5 MW/hr power is required.

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

Separate EMP has been attached M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 14 Prefeasibility Report

3.10. Schematic representations of the feasibility drawing which give information of EIA purpose As per EIA notification, 2006 and further amendments the proposal is 5 (g) - 180 KLPD molasses based distillery.

4. Site Analysis

4.1. Connectivity The Proposed project shall be located in Sy. Nos. 233 & other Sy no’s of Duggavatti Village, Harapanahalli taluk, Bellary district, Karnataka. The current proposal is expansion of existing 60 KLPD distillery to 180 KLPD with 7 MW/hr power generation.

The Project site is well accessed by SH-25.The nearest populated village is Duggavatti 2.15 km away from the plant.

Location plan Location features of the proposed project site Sl.No Features Particulars 1 Location Sy. Nos. 233 & other sy no’s of Duggavatti Village, Harapanahalli taluk, Bellary district, Karnataka 2 Present Land use Industrial 3 Temp., Max and Min 27oC max & 16.6o min 4 Average Humidity 71%

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 15 Prefeasibility Report 5 Annual Rainfall 674.14 mm (average of 42 rainy days) 6 Soil Type Red sandy soil & Black soil 7 Nearest Village Shantinagar Tanda 8 Nearest Town Harihar 9 Latitude 14°37'37.86"N 10 Longitude 75°50'32.26"E

Environmental Settings around the proposed project site (Within 10 Km Radius) Sl.No Description Details 1 Nearest Highway SH – 25 located at a distance of 2.25 Km from the plant in Eastern direction. 2 Nearest River Tungabhadra River located at a distance of 3.0 Km from the plant in the western direction. 3 Nearest Water body  Duggavatti Halla flowing at a distance of 3.0 km from the plant in the direction of south.  Karala Halla flowing at a distance of 4 km from the plant in the direction of south East  Kondajji kere located at a distance of 8.5 Km from the plant in the South Eastern direction.  Telagi kere located at a distance of 5.8 Km from the plant in the North Eastern direction.  Aremallapura kere located at a distance of 8.95 Km from the plant in the North Western direction.  Kanderayanahalli Tanda kere located at distance of 8.75 Km from the plant in the South Western direction.  Aligilwada kere located at distance of 6.4 Km from the plant in the North eastern direction. 4 Nearest Village Shantinagar Tanda is located at a distance of 1.35 Km from the plant in the North direction Duggavatti Village is located at a distance of 2.15 Km from the plant in the South eastern direction 5 Nearest Taluk Harihar Taluk is located at a distance of 12.3 Km from the plant in the South western direction.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 16 Prefeasibility Report Environmental Settings around the proposed project site Sl.No Description Details 1 Nearest Reservoir  Tungabhadra Reservoir Located at a distance of 70.79 Km from the plant in the North Eastern direction  Devarabelekere Reservoir Located at a distance of 26.9 Km from the plant in the South Eastern direction 2 Nearest Railway lines Telagi station located at a distance of 6.52 Km from the plant in North eastern direction. 3 Nearest Airport Hubballi airport at a distance of 114.8 km from the plant in the North West Direction. 4 Nearest National park /  Aligilwada Reserve forest located at a Reserved Forest distance of 1.4 km in the direction of North East  Jittinakatti south Reserve forest located at a distance of 9.75 km in the direction of East.  Nilagunda Reserve forest located at a distance of 7.65 km in the direction of North East. 5 Nearest Biosphere Reserve Nil 6 Nearest Sanctuary Renebennur Blackbuck sanctuary Protected Area is at a distance of 6.8 Kms from the project site 7 Nearest Defense Installation Nil 8 Nearest Highway SH–25 located at a distance of 2.25 Km from the plant in Eastern Direction. 9 Nearest Water body Tungabhadra River located at a distance of 3.0 Km in the direction of west. 10 Nearest densely populated Duggavatti Village located at a distance of 2.15 place in the direction of South East 11 Interstate Boundary Karnataka - Andhra Pradesh Boundary located at a distance of 99.16 Km in the direction of East. 12 Nearest Industry Harihar Poly fibers – 12.29 Km,SW Shamanur Sugars adjacent to the project site.

4.2. Land form, land use and land ownership. M/s. Indian canes Power Ltd. established the 60 KLPD distillery units at Duggavatti Village, Harapanahalli Taluk, Bellary District, Karnataka. The industry has obtained EC for the expansion of production capacity 180 KLPD in 2008. However due to financial constraints the project was not established. Now management decided to implement the project with financial aid.

4.3. Topography (along with map)

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 17 Prefeasibility Report

Map of the proposed project site (showing salient features)

Aerial View of the project site (2km, 5 km, 10km Radius)

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 18 Prefeasibility Report

Aerial View of the Proposed Project Site with 10 km study area

4.4. 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 forest, national parks, wild life sanctuary, eco sensitive areas, water bodies (distance from, the HFL of the river)). In case of notified industrial area a copy of the Gazette notification should be given. Land use map of 10 km study area will be given in the EIA report. Renebennur Blackbuck sanctuary Protected Area is at a distance of 6.8 Kms from the project site. Aligilvada Reserve Forest, Nilagunda Reserve Forest, Jittinakatti South Reserve Forest are at a distance of 1.55 km, 7.65 km & 9.75 km from the project site respectively. The River Tungabhadra is 3.0 Km away from the project site and the State Highway (SH-25) is 2.25 Km from the project site.

The following villages are situated in the study area: SI. No Villages Distance (Km) Direction 1 Duggavatti 2.15 SE 2 Shantinagar Tand 1.35 N 3 Chikka bidare 2.75 SW 4 Sarathi 4 SW 5 Pamenahalli 5.4 SW 6 Hire bidare 3.5 NW 7 Airani 5.15 SW 8 Telagi 5.5 NE 10 Aremallapur 8.7 W

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 19 Prefeasibility Report 11 Kondajji 7.7 SE 12 Bullapura 6.75 SE 13 Dittur 6.75 SW 14 Aligilwada 6.4 NE 15 Matturu 7.2 NW 16 Nitturu 8.1 NW

4.5. Existing Infrastructure

Project site is well accessed by SH-25. The nearest densely populated village is Duggavatti 2.15 km away from the plant.

4.6. Soil Classification

Major part of the district is covered by red sandy soil and followed by black soil. Red sandy soil is spread throughout the district except in a small area in the northeastern part of the district where the area is covered by black soil. The Red Sandy soil comprises of red loams, red sandy, sandy loams and medium black soils.

4.7. Climatic and Rainfall data from secondary sources

The district enjoys semi arid climate & falls under central dry agro-climatic zone of the Karnataka state and is categorized as drought prone. In the April month temperature reaches 410C .The region has, on the whole a dry climate, the summer and the winter seasons being driest part of the year. The relative humidity is 51- 71% in the mornings and 25-41 % in the afternoons. The period from December to February is the winter marked by a cool, bright and pleasant weather. December is the coldest month with a mean daily maximum temperature of 27.9o c and a mean minimum of 16.6oc.

In general, southwest monsoon contributes 58 % of total rainfall and northeast monsoon contributes 22 % rainfall. The remaining 20 % rainfall is received as sporadic rains in summer months. It receives low to moderate rainfall

The normal annual rainfall in the district based on 70 years is 644 mm. However in the last decade (2002-2011) the district received an average annual rainfall of the 674.14 mm. Further analysis of the rainfall data indicate that there was deficient rainfall in the years 2003, whereas the year 2010 received excess rainfall.

4.8. Social Infrastructure available

The Project site is well accessed by SH-25.The nearest densely populated village is Duggavatti 2.15 km away from the plant. The nearest industry to the distillery plant is Harihar Polyfibers located at a distance of 12.27 km & Shamanur sugars located adjacent to the project site.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 20 Prefeasibility Report 5. Planning

5.1. Planning concept (type of industries, facilities, transportation, etc.,) Town and Country Planning Development authority classification. The proposal is to expand the distillery plant at the existing site. 5 acres of the existing open land area will be made use for the expansion of the production capacity. This is flat land whereby cutting-filling will be balanced and there will be no/low borrowing from nature.

5.2. Population Projection:

The total population of the district as per 2011 Census is 1,945,497 of the total population, 9,86,400 are males and 9,59,097 are females. The district’s share to total Karnataka’s population is 3.18 percent and it ranks at 9th place among the districts. The population of the district is further distributed as 13,16,487 living in rural areas and 6,29,010 in urban areas, constituting 67.67 and 32.33% of rural and urban population respectively. The population in the age-group 0-6 is reported as 217731. This constitutes 67.87 percent in rural areas and 32.13 percent in urban areas. The proportion of child population is 11.19 percent to the total district population. An interesting segment of India’s population is its adolescents and youth. While the adolescents are classified as persons between 10-19 years of age, the youth are defined as persons between 15-24 years. The number of adolescents (10-19) in the district is 3,80,747 and the youth (15-24) is 3,91,054. Together the young age group between 10-24 years in the district constitutes 5,74,845 which is about 29.55 percent of the total district population. The work participation rates for Male and Female population are 59.4 and 30.2 respectively in the district. Among the total workers in the district 80.6 percent are Main workers and 19.4 percent are Marginal workers.

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

Sl No Land Description Area (acres) 01 Plant area 40 02 Open area around plant 10 03 Greenbelt area 300 04 Road area 5 05 Open area for future use 105 Total 460

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 21 Prefeasibility Report 5.4. Assessment of infrastructure Demand (Physical & Social). There will not be any negative effect on the living conditions of people. Due to project activities, the surrounding areas are expected to improve by way of socio- economic development due to direct and indirect employment and the project will also lead to supporting utilities by improving business opportunities in the locality.

5.5. Amenities/facilities Basic amenities and facilities will be provided for all workers working at site.

6. Proposed Infrastructure

6.1. Industrial Area (Processing area)

Sl No Land Description Area (acres) 01 Plant area 40 02 Open area around plant 10 03 Greenbelt area 300 04 Road area 5 05 Open area for future use 105 Total 460

6.2. Residential Area (non processing area).

Residential colony for workers will be provided

6.3. Green Belt

300 Acres already developed as for green belt development.

6.4. Social Infrastructure

Good infrastructure facilities seen around the unit

6.5. Connectivity Traffic and Transportation Road/Rail/Metro/Water ways etc

The Project site is well accessed by SH-25. The nearest densely populated village is Duggavatti 2.15 km away from the plant. Telagi railway station is at a distance of 6.52 km from the plant.

6.6. Drinking Water Management (Source & Supply of water)

Drinking water is met through Tungabhadra River located at 3.0 km from the site.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 22 Prefeasibility Report 6.7. Sewerage System

Domestic sewage is treated in septic tank and soak pit. Industrial effluent will be treated in the ETP through internal sewer network.

6.8. Industrial Waste Management

Effluent generated will be treated in the CPU of 1250 KLD and treated water will be used within the plant premises.

6.9. Solid Waste Management

Solid waste generated from the expansion of Distillery plant is yeast sludge 20T/d which is used in the composting process with RO rejects & spent wash during the maintenance of the incineration boiler. Boiler ash 38.4 T/d generated will be mixed with yeast sludge and given to farmers as manure.

6.10. Power Requirement & Supply/Source Power requirement will be met through KPTCL and inhouse power generation system

7. Rehabilitation and Resettlement (R&R) Plan

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

Not applicable.

8. Project Schedule & Cost Estimation

8.1. Project Schedule

The company is an established 60 KLPD distillery unit. Now proposes to expand the distillery unit to 180 KLPD with 9 MW/hr of power within the same premises after obtaining Environmental Clearance and Consent for establishment.

8.2. Cost Estimates Rs.154.68 Crores as estimated

9. Analysis of proposal (Final recommendation)

9.1. Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area

80 nos, additional employees will be recruited and the company will provide all necessary basic amenities to the workers of the industry.

M/s Indian Cane Power Limited (Unit: Samsons Distilleries) 23