PREFEASIBILITY REPORT for M/s SOUBHAGYA LAXMI SUGARS LTD FOR THE EXPANSION OF 4500 TCD SUGAR INDUSTRY TO 7,500 TCD SUGAR CANE CRUSHING AND 18 MW COGENERATION UNIT TO 36 MW COGEENRATION, ESTABLISHMENT OF 60 KLPD DISTILLERY ALONG WITH INSTALLATION OF INCINERATION BOILER TO GENERATE 3 MW POWER at Sy No 413 & 443, Hirenandi, Gokak Taluk, Begaum PREPARED BY ENVIRONMENTAL HEALTH & SAFETY CONSULTANTS PRIVATE LTD, # 13/2, 1ST MAIN ROAD, NEAR FIRE STATION, INDUSTRIAL AREA, RAJAJINAGAR, BANGALORE-560 010, Tele: 080-23012100, Fax: 080 23012111 Email:[email protected]/[email protected] ; www.ehsc.in M/s Soubhagya Laxmi Sugars Ltd., 1 1. Executive Summary M/s Soubhagya Laxmi Sugars Ltd., have already obtained Environmental Clearance for the establishment of 4500 TCD sugar cane crushing, 18 MW cogeneration unit. Now based on the demand, management has decided to expand the sugar and cogeneration unit project to 7500 TCD sugar cane crushing and 36 MW cogeneration unit, 60 KLPD distillery and 3 MW power by the installation of incineration boiler. Sl.No Items Particulars 1 Objective of the Project Expansion to 7500 TCD of sugar plant with 36 MW Cogeneration unit, establishment of 60 KLPD distillery + installation of incineration boiler to generate 3 MW power. 2 Promoters M/s Soubhagya Laxmi Sugars Ltd 3 Total Investment , Rs 452.5 Crores (Rs. 252.5 Crores for expansion) 4 Project location Sy No 413 & 443 , Hirenandi Village, Gokak Taluk, Belgaum district 5 Extent of land 426 Acres 6 Man Power 350 7 Water demand and Source for 7500 TCD sugar cane crushing and 36 MW cogeneration, 60 KLPD distillery and 3 MW from incineration boiler: During season: 1400 KLD During off season: 2476 KLD For 60 KLPD distillery: 600 KLD 8 Power supply The total power required for the proposed project will be 500 kwh – for construction phase from KPTCL During operation phase, for sugar unit: 7.5 MW and for cogeneration unit: during season : 3.0 MW and off season: 4.5 MW. Distillery: 2 MW Power is obtained from Co generation unit 9 Latitude 16 0 03' 29.24" N 10 Longitude 74 0 55' 58.97" E 2. Introduction of the Project/ Background Information 2.1 Identification of project and project proponent. Soubhagya Laxmi Sugar Ltd (SLSL) is promoted by Shri. Ramesh L Jarkiholi, Chairman along with other two directors. SLSL has appointed key staff and workers for operation of plant. Under the guidence of Chairman with his management team have already carried out several activities in the command area including cane development and activities related to commissioning of sugar plant and cogen power plant Soubhagya Laxmi Sugar Ltd. is a public limited company proposed to expand the sugar and cogeneration unit to 7500 TCD sugars, 36 MW capacity cogen power plant along with installation of 60 KLPD distillery and 3 MW from the installation of incineration boiler. This M/s Soubhagya Laxmi Sugars Ltd., 2 integrated project will be located at Sy No 413 & 443, Hirenandi Village, Gokak Taluk, Belgaum district. Total land area required is 426 acres of land has been purchased in the name of M/s Soubhagya Laxmi Sugars Ltd.,. Total capital investment on the proposed project is Rs. 452.5 Crores (Rs. 252.5 Crores for expansion). The nearest major village with residential area is Mamdapur, which is at 5.7 kms away from the proposed project site. The commercial & social infrastructure around the proposed site is considered quite well for setting up the proposed integrated project. The integrated project comprises of a sugar factory for the manufacture of white plantation sugar, thereby making available required bagasse for the cogen power plant. Raw sugar for refinery will be imported. The command area of the proposed sugar mill has excellent irrigation facilities, availability and potential for sustained cane supply & biomass materials like cane trash etc. And imported coal for operating the cogen power plant during off-season. The aggregated capital investment for the integrated project has been estimated at Rs. 452.5 Crores (Rs. 252.5 Crores for expansion). 2.2. Brief description of nature of the project. M/s Soubhagya Laxmi Sugars Ltd is located at Sy No 413 & 443 , Hirenandi Village, Gokak Taluk, Belgaum district The propose sugar complex is to be developed on a land of about 426 acres. This is flat land whereby cutting-filling will be balanced and there will be no/low borrowing from nature. The area of operation and cane cultivation is mostly irrigated by lifts, wells, and canals, & MI tanks. The climate, soil, rains are favorable for sugarcane growth and sugar cane yield. 2.3. Need for the project and its importance to the country and / or region. Indian sugar industry is the country's second largest agro processing industry with a production capacity of over 27 million ton of white crystal sugar annually. Majority of the farmers in Maharashtra, Uttar Pradesh and Karnataka are dependent on sugarcane cultivation and sugar industry. Due to increasing irrigation facilities, easy accessibility to modern technology in cultivation and whether forecasting there exist unlimited potential for increasing production as the area under sugar cultivation is only 3 % of the total cultivable area in the country contributing above 7.5 % of the gross values of agricultural production in the country. Above 50 million farmers depend on sugar cane cultivation for their livelihood and equal number of agricultural labourers earns their living by working in sugar cane farms. India requires alcohol for the following three major purposes: For potable liquor For industrial use For fuel blending Thus alcohol produced from one source i.e., molasses is used for all 3 purposes. there is an urgent need to bring in above quality consciousness in the industry and appropriate policy measures by the Government. Indian distillery industry broadly consists of two parts: Production of alcohol from molasses for industrial alcohol Production of alcohol from molasses for liquor purposes. M/s Soubhagya Laxmi Sugars Ltd., 3 Ethanol demand for fuel blending is a recent phenomenon. For this purposes, alcohol from molasses is used. The potable distillery producing Indian made Foreign Liquor (IMFL) has steady but limited demand. The alcohol produced is now being utilised in the ratio of approximately 52 % for potable purpose and the balance 48 % for industrial purpose. 2.4. Demand-Supply The existing Sugar factories could not crush all available cane from the areas of operation and hence, rest of the sugarcane is being taken to the sugar factories in neighbouring districts of Karnataka and Maharashtra. Presently, the cane grown by farmers are diverting to the sugar factories located in Maharashtra, in this connection farmers are suffering like delay in disposal, less price, less payment etc., Thus, the farmers are facing problems of disposal of sugarcane in 3-4 seasons. This situation has demanded to need Sugar units at this area. The demand for electrical power has been increasing at a faster pace after the country's economic development the pace speeded up, especially in Karnataka which has been the hub of software services. The effective generation of power has not been meeting the demand and the same trend is expected to continue, especially during the peak hours and summer seasons. Hence, there is good scope for exporting power to the third parties using the state grid through power traders / purchasers. Since 1977, several technical committees and study groups have examined the issue of blend of ethanol with petrol. Announcement were made on this issue in the Parliament in December 2001, March 2002. Auto fuel policy was declared in august 2002. The ministry of Petroleum recently issued a gazette notification, dated 11th January 2013 making 5 % ethanol blending with petrol mandatory across the country. the 5 % ethanol blending programme was so far made applicable in only 13 states of the country with blending level of about 2 % against a mandatory target of 5 %, but with this gazette notification it become mandatory for OMCs to achieve 5 % ethanol blending programme for the entire country. 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 350 no of persons of all categories are working in the industry. 3. Project Description 3.1. Type of project including interlinked and interdependent project, if any. Not applicable 3.2. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. M/s Soubhagya Laxmi Sugars Ltd., 4 10kms radius Toposheet with 10 Kms demarcation showing location of the proposed project site (Topo sheets No: 47 L/16, 47 P/4, 48 M/1, 48 I/13) M/s Soubhagya Laxmi Sugars Ltd., 5 Proposed Project Site Photographs Aerial View of the proposed project site (showing salient features) M/s Soubhagya Laxmi Sugars Ltd., 6 3.3. Details of alternative sites, considered and the basis of selecting the proposed site particularly the environmental considerations gone into should be highlighted. Not applicable 3.4. Size & magnitude of operation The company proposes to expand a sugar complex to 7,500 TCD cane crushing, 36 MW cogen, installation of 60 KLPD distillery + 3 MW from incineration boiler. 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 OF MANUFACTURING: In India, majority of the factories are involved in preparing white direct consumption sugar, which is 99.8 pure. Some limited quantity of raw or brown sugar (97 - 98 pure) is also made for the purpose of export.