DECEMBER 2018

Detailed Project Report (DPR) on

100 KLPD Multifeed Distillery Plant
Based on Molasses and Grains

At
Village Aurangabad, Tal. Nawabganj,
Dist. Bareilly, Uttar Pradesh

Prepared for:
Oswal Overseas Ltd.
Regd. Office :-
72, Ground Floor, Taimoor Nagar,
Opp. New Friends Colony,
New Delhi – 110 065
Prepared by:
Mantras Green Resources Ltd.
Hall No.1, First Floor, NICE
Sankul, Plot No. A-9, Opp.-Nashik
Merchant Co-op Bank Ltd., ITI
Signal,
MIDC Satpur, Nasik-422007
 INDEX

Chapter Title Page

No. No.

1 Executive Summary 2–7

2 Introduction 8–12

3 Market 13–22

4 Technical Feasibility 23–50

5 Broad Technical Specifications for Plant and 51 – 67

Machinery

6 Energy and Water Conservation 68– 69

7 Financial Viability 70– 74

8 Permissions, NOCs & Approvals 75–76

9 Socio-Economic and Environmental Benefits 77–87

10 SWOT Analysis & Conclusion 78–80

Financial Statements – Schedules & Annexure

Detailed Project Report on 100 KLPD Multifeed Distillery Plant by OOL at Aurangabad, 1
UP
 CHAPTER – 1

EXECUTIVE SUMMARY

Project at a Glance

1. M/s. Oswal Overseas Ltd. having its registered office at 72, Ground
Floor, Taimoor Nagar, Opp. New Friends Colony, New Delhi – 110
065, is a listed Public Limited Company registered under the
Companies Act, 1956.

Oswal Overseas Limited was incorporated on the 31 st day of May,

1984 in the name and style of ANK Impex Private Limited.
Subsequently, on the 9th day of October, 1984, it changes its name
from “ANK Impex Private Limited” to “ANK Impex Limited”. On the 6 th
day of May, 1992 under the fresh Certificate of Incorporation, it
changes its name to its current name “Oswal Overseas Limited”.

2. M/s Oswal Overseas Ltd. having following Directors on the Board:

 Mr. Paramjeet Singh, Managing Director

 Mr. Harihar Nath Sharma, Independent Director

 Mr. Anoop Kumar Srivastava, Director

 Mr. Rajinder Pal Singh - Independent Director

 Mrs. Ruchi Dawar - Woman Independent Director

3. It is engaged in the business of manufacturing of sugar and by-

products.

4. The manufacturing facilities are located at village Aurangabad, Tal.

Nawabganj, Dist. Bareilly, Uttar Pradesh. The present installed
capacity of the sugar mill is 3500 TCD.

5. The physical performance of the sugar factory for last two seasons is
given below.

Sr. Season Crushing Sugar Sugar

No. (MT) Production Recovery
(MT) (%)
1 2016-17 220680 21254 9.63
2 2017-18 409661 35838 10.15
 The company has produced molasses of about 16952 MT in last
crushing season 2017-18 and 11274 MT in crushing season 2016-17.

6. Raw Material Availability

The unit is situated in the cane and food grains rich area in central
Uttar Pradesh. The availability of sugar cane is sufficient for 3500
TCD sugar mill.

7. Financial Position of the Company

The financial performance of the company for last 2 years is given

below:
(Rs. in Lakh)
Particulars 31.3.2018 31.3.2017
(Aud.) (Aud.)
Sales and other Income 7680.08 8108.00
Increase/Decrease in WIP and Finished (3586.99) (671.65)
Goods
Profit / Loss before Depreciation, Finance (1637.33) 440.47
Cost and Taxes
Financial Charges 194.79 253.32
Depreciation 230.20 223.40
Profit / Loss Before Tax (2062.32) (36.24)
Profit / Loss After Tax (1996.45) (36.20)

Project Background

Considering the availability of own molasses of about 22,500 MT and

availability of grains in the command area of the company, the
management of the company has taken various steps for setting up of 100
KLPD Distillery Plant based on molasses and grains.

The company has obtained IEM from the Ministry of Commerce &
Industry, Govt. of India for setting up Distillery.

The Company has also received sanction from Ministry of Food and Public
Distribution, Government of India for 50% subvention in interest for a
term loan of Rs.68.12 Cr for initial 5 years.

The proposed distillery plant of 100 KLPD capacities will employ state-of-
art-technology for production of ENA / ethanol i.e. milling and cooking,
fermentation, multi pressure distillation system, integrated and
standalone evaporation section and slop fired incineration based Cogen
power plant. Sugar factory will supply molasses, while the incineration
boiler and turbine will supply steam and power to the proposed ethanol
plant. It will employ high pressure incineration boiler of 22 TPH and 2.00
MW Back Pressure turbine for 60 KLPD molasses based plant and high
pressure boiler of 10 TPH boilers and 1 MW back pressure turbine for 40
KLPD grain based distillery.

The total requirement of molasses for the entire year operation (330 days a
year) of the proposed 60 KLPD fuel ethanol plant at 100% capacity
utilization will be around 79200 MT. Considering the crushing of about 5
lakh MT, in-house molasses will be available around 22,500 MT with an
average molasses recovery of 4.5% and the balance 56700 MT of molasses
will be met out through procurement through nearby sugar factories or
through use of own B-heavy molasses.

The total requirement of damaged grains for the entire year of operation
(330 days a year) for the proposed 40 KLPD grain based distillery at 100%
capacity utilization will be around 32195 MT. The company proposes to
procure the damaged grains from the district through traders / farmers.

Overall, the entire distillery plant of 100 KLPD is proposed to be set up

based on the stand-alone commercial viability of the captioned project,
ensuring that the integration effort or synergy would enhance the overall
commercial viability of OOL.

The Promoters & Project Preparedness

OOL’s management comprises experienced and competent professionals.

 Mr. Paramjeet Singh, Managing Director, is Graduate in L.L.B. He

has already served as Managing Director of the Company from 2008
to 2011 under his stewardship; the company has grown rapidly
through organic and inorganic means which has helped to make
Oswal Overseas Limited, a leader in the Indian sugar industry. He
has more than 30 Years of experience in various business segments
including more than 15 years experience in the sugar industry.

 Mr. Harihar Nath Sharma, Independent Director on the Board, is a

very experience business personality. Company has appointed him as
an Independent Director on the Board to take his independence
advice on various business matters. He has more than 25 years of
experience in accounts and finance including more than 10 years of
experience in the sugar industry.
 Mr. Anoop Kumar Srivastava – a Director on the Board is a
Commerce Graduate. He has expertise in the field of IT Management
of more than 10 years and also has the experience of more than 3
years in Export Management.

 Mr. Rajinder Pal Singh - Independent Director on the Board of the

Company. He has more than 5 years experience in Business and also
he has good knowledge of Accounts and Finance.

 Mrs. Ruchi Dawar - Woman Independent Director, an Associate

Member of Institute of Company Secretaries of India (ICSI) and
presently working as Practicing Company Secretary in Agra. She
holds a Masters Degree in Business Administration (MBA Finance).
She is Commerce Graduate and also pursuing Law (LLB). She has
over 12 years of professional experience.

OOL has earmarked about 22 acres of land for the proposed 100 KLPD
distillery plant which is sufficient including future expansion.

OOL also applied for various NOCs and Permissions and expected to get
all the NOCS and permissions within 5-6 months.

The current policies for manufacture of fuel ethanol are getting

progressively conducive at the Centre & also in the State of UP. The
Government of India has recently approved the purchase price at Rs.
43.46 / liter of fuel ethanol, excluding GST and transport. The rate of
grain based ENA is around Rs.49/Ltr.

FINANCIAL HIGHLIGHTS

Name and Address : M/s Oswal Overseas Ltd.

Project Site : At Village Aurangabad, Tal. Nawabganj,

Dist. Bareilly, Uttar Pradesh

Regd. Office : 72, Ground Floor, Taimoor Nagar,

Opp. New Friends Colony,
New Delhi – 110 065

Constitution & Type : Public Limited Company

Products & By : 1) Ethanol

Products
2) ENA
3) DWGS
Installed Capacity of : 1) Ethanol - 60KLPD (330 Operating days)
the Project 2) ENA- 40 KLPD (330 Operating days)

Project Cost:
Total Project Cost : (Rs. in Lakh)
Land : 0.00
Site Development : 159.30
Civil works & Buildings : 1758.20
Indigenous Plant and Machinery : 10325.00
Miscellaneous Fixed Assets : 1062.00
Prelim & Preoperative Expenses : 743.80
Contingencies : 140.42
Working Capital Margin : 279.62
Total : 14468.34

Means of Finance:

Financing Pattern % : (Rs. in Lakh)

1. OOL’s Own Contribution 20.00 : 2893.67
2. Bank Loan 80.00 : 11574.67
Total 100.00 : 14468.34

Key Financial Viability Indicators

Parameter First Year Fifth Year

Estimated W/C Requirements Rs. Lakh 838.85 1016.76
Estimated Annual Income Rs. Lakh 9764.77 11487.96
Profit Before Tax Rs. Lakh 2306.86 3697.33
Accumulated Cash Surplus Rs. Lakh 1845.49 11830.41
Direct Employment Nos.
102 102
Debt Service Coverage Ratio Average 1.90
Maximum 4.35
(DSCR)
Minimum 1.50
Payback Period, Years 4 to 5

Internal Rate of Return on total Investment, % 22.99

Strengths

The main strengths of this integrated project include:

 Background and experience of the promoters

 Existing sugar factory
 Project location in potential sugarcane and grain area
 Experienced, willing and committed farmers
 Ensured cane availability
 Demand supply gap in fuel ethanol / ENA in India
 Conducive policy / regulatory frame work
 Sustained availability of raw materials i.e. molasses and grains
 Substantial socio-economic and environmental benefits
 Latest technology equipment with highest efficiency and
 Sound techno commercial viability

Implementation Schedule

The entire project implementation period is estimated at 10 to 12 months

from the financial closure. The OOL proposes to avail term loan from
Nationalized Bank. OOL proposes to commission the ethanol plant on or
before April, 2020. Meticulous planning and strong project management
underway will ensure this schedule.

Conclusions

Over all, the project is well conceived and conceptualized, with sound
commercial viability. The expected financial returns are quite satisfactory.
The project is being implemented by promoters having requisite
background and experience and with employment of experienced
professionals, experts and consultants; all perceived risks have adequate
safe guards.
 CHAPTER – 2

INTRODUCTION

2.1 Company Background

2.1.1 This Detailed Project Report (DPR) has been prepared for
M/s Oswal Overseas Ltd. (OOL) by Mantras Green Resources
Ltd., Nasik, for setting up 100 KLPD Distillery Plant based
on molasses and grains as feed stock at Aurangabad, Tal.
Nawabganj, Dist. Bareilly in the Uttar Pradesh State.

2.1.2 M/s. Oswal Overseas Ltd. having its registered office at 72,
Ground Floor, Taimoor Nagar, Opp. New Friends Colony,
New Delhi – 110 065, is a listed Public Limited Company
registered under the Companies Act, 1956.

Oswal Overseas Limited was incorporated on the 31 st day of

May, 1984 in the name and style of ANK Impex Private
Limited. Subsequently, on the 9th day of October, 1984, it
changes its name from “ANK Impex Private Limited” to “ANK
Impex Limited”. On the 6 th day of May, 1992 under the fresh
Certificate of Incorporation, it changes its name to its current
name “Oswal Overseas Limited”.
2.1.3 M/s Oswal Overseas Ltd. having following Directors on the
Board:

 Mr. Paramjeet Singh, Managing Director

 Mr. Harihar Nath Sharma, Independent Director

 Mr. Anoop Kumar Srivastava, Director

 Mr. Rajinder Pal Singh - Independent Director

 Mrs. Ruchi Dawar - Woman Independent Director

2.1.4 It is engaged in the business of manufacturing of sugar and

by-products.

2.1.5 The manufacturing facilities are located at village

Aurangabad, Tal. Nawabganj, Dist. Bareilly, Uttar Pradesh.
The present installed capacity of the sugar mill is 3500 TCD.

2.1.6 The physical performance of the sugar factory for last two
seasons is given below.
 Sr. Season Crushing Sugar Sugar
No. (MT) Production Recovery
(MT) (%)
1 2016-17 220680 21254 9.63
2 2017-18 409661 35838 10.15

The company has produced molasses of about 16952 MT in

last crushing season 2017-18 and 11274 MT in crushing
season 2016-17.

2.1.7 Raw Material Availability

The unit is situated in the cane and food grains rich area in
central Uttar Pradesh. The availability of sugar cane is
sufficient for 3500 TCD sugar mill.

2.1.8 Financial Position of the Company

The financial performance of the company for last 2 years is

given below:
(Rs. in Lakh)
Particulars 31.3.2018 31.3.2017
(Aud.) (Aud.)
Sales and other Income 7680.08 8108.00
Increase/Decrease in WIP and (3586.99) (671.65)
Finished Goods
Profit / Loss before Depreciation, (1637.33) 440.47
Finance Cost and Taxes
Financial Charges 194.79 253.32
Depreciation 230.20 223.40
Profit / Loss Before Tax (2062.32) (36.24)
Profit / Loss After Tax (1996.45) (36.20)

2.2 Project Background

2.2.1 Considering the availability of own molasses of about 22,500

MT and availability of grains in the command area of the
company, the management of the company has taken various
steps for setting up of 100 KLPD Distillery Plant based on
molasses and grains.

2.2.2 The company has obtained IEM from the Ministry of

Commerce & Industry, Govt. of India for setting up Distillery.
 2.2.3 The Company has also received sanction from Ministry of
Food and Public Distribution, Government of India for 50%
subvention in interest for a term loan of Rs.68.12 Cr for initial
5 years.

2.2.4 The proposed distillery plant of 100 KLPD capacities will

employ state of art technology for production of ENA / ethanol
i.e. milling and cooking, fermentation, multi pressure
distillation system, integrated and standalone evaporation
section and slop fired incineration based Cogen power plant.
Sugar factory will supply molasses, while the incineration
boiler and turbine will supply steam and power to the
proposed ethanol plant. It will employ high pressure
incineration boiler of 22 TPH and 2.00 MW Back Pressure
turbine for 60 KLPD molasses based plant and high pressure
boiler of 10 TPH boiler and 1 MW back pressure turbine for 40
KLPD grain based distillery.

2.2.4 The total requirement of molasses for the entire year

operation (330 days a year) of the proposed 60 KLPD fuel
ethanol plant at 100% capacity utilization will be around 79200
MT. Considering the crushing of about 5 lakh MT, in-house
molasses will be available around 22,500 MT and the balance
56700 MT of molasses will be met out through procurement
through nearby sugar factories or through use of own B-heavy
molasses.

2.2.5 The total requirement of damaged grains for the entire year of
operation (330 days a year) for the proposed 40 KLPD grain
based distillery at 100% capacity utilization will be around
32195 MT. The company proposes to procure the damaged
grains from the district through traders / farmers.

Overall, the entire distillery plant of 100 KLPD is proposed to be set

up based on the stand-alone commercial viability of the captioned
project, ensuring that the integration effort or synergy would
enhance the overall commercial viability of OOL.

2.3 Project Preparedness

OOL has initiated the following steps for establishing ethanol plant:
 Earmarked 22 Acres of land for the proposed plant
 Appointed Technical Consultant
 Received for IEM for Distillery
 Applied for Environment Clearance
 Received 50% subvention in term loan interest from Government
of India
 Now, OOL has now been fully geared up to commission this project
on or before April, 2020. Latest technologies for ethanol plant and
generation of power will be employed in this project to ensure
optimum efficiency and operating costs.
OOL also applied for various NOCs and Permissions and expected
to get all the NOCS and permissions within 5-6 months.
A dedicated Project Team of OOL has been functioning since 2017,
along with appointed experts and consultants, for speedy and
successful commissioning of this project.
2.4 Promoter’s Background & Experience
OOL’s management comprises experienced and
competent professionals.

 Mr. Paramjeet Singh, Managing Director, is Graduate in

L.L.B. He has already served as Managing Director of the
Company from 2008 to 2011 under his stewardship; the
company has grown rapidly through organic and inorganic means
which has helped to make Oswal Overseas Limited, a leader in
the Indian sugar industry. He has more than 30 Years of
experience in various business segments including more than 15
years experience in the sugar industry.
 Mr. Harihar Nath Sharma, Independent Director on the
Board, is a very experience business personality. Company has
appointed him as an Independent Director on the Board to take
his independence advice on various business matters. He has
more than 25 years of experience in accounts and finance
including more than 10 years of experience in the sugar
industry.

 Mr. Anoop Kumar Srivastava – a Director on the Board is a

Commerce Graduate. He has expertise in the field of IT
Management of more than 10 years and also has the experience
of more than 3 years in Export Management.

 Mr. Rajinder Pal Singh - Independent Director on the Board

of the Company. He has more than 5 years experience in
Business and also he has good knowledge of Accounts and
Finance.
 Mrs. Ruchi Dawar - Woman Independent Director, an
Associate Member of Institute of Company Secretaries of India
(ICSI) and presently working as Practicing Company Secretary
in Agra. She holds a Masters Degree in Business
Administration (MBA Finance). She is Commerce Graduate and
also pursuing Law (LLB). She has over 12 years of professional
experience.
2.4 Objective of the Report

The objective of preparation of this report is for submission to

various government agencies for obtaining their NOCs / Clearances.

2.5 Acknowledgements

We wish to record deep sense of gratitude to OOL management, for

entrusting this assignment. In particular, we are thankful to Mr.
Paramjeet Singh, Managing Director and all other concerned staff of
OOL, for providing required guidance and data support
 CHAPTER – 3

MARKET

3.1 Ethanol Sector Overview, India, UP and World

3.1.1 Background

The use of alcohol as a drink is an age-old story. It appears

that in India the technique for fermentation and distillation
was available even in the Vedic times. Alcohol is an integral
part of the Ayurvedic system of medicine also.

Carew & Co. Ltd. set up the first distillery in the country at
Cownpore (Kanpur) in 1805 for manufacture of Rum for the
British army. The technique of fermentation, distillation and
blending of alcoholic beverages was developed in India on the
lines of practices adopted overseas, particularly in Europe.

The original use of alcoholic fermentation was of course for

preserving fruit juices. Now the fermentation is adapted for
the preparation of fermented grain beverages and then
distilled beverages. The utilization of Ethanol, for industrial
use is a recent phenomenon. It became important towards
the end of the Second World War.

When large-scale production of alcoholic beverages was

taken up, various Governments found that alcohol was a
good source for increasing government revenue through
collection of tax. When synthetic organic chemistry
advanced rapidly, about a century ago, alcohol became an
indispensable chemical for this industry. However extensive
manufacturing of alcohol for industrial use was hampered
due to excessive taxes. The problem was to device a means
for conserving government’s interest in tax collection on
potable alcohol and at the same time making alcohol for
industrial use relatively free of tax. Thus different
governments introduced the process of denaturation of
alcohol for industrial use.

During the Second World War, the demand for the industrial
alcohol increased 4-5 times, above the prewar period, due to
the production of smokeless powder for weapons. The imports
of molasses were hampered due to war conditions. This leads
to evolving the process of grain fermentation for meeting the
requirement of Ethanol.
 In India, after the protection granted to the sugar Industry in
1932, a large number of sugar factories were established in
the country, particularly in Maharashtra and Uttar Pradesh
where irrigation facilities existed for cultivation of sugarcane.
Increase in sugar production resulted in accumulation of
molasses, which resultantly, caused unmanageable
environmental problems. At that time the demand for
molasses was almost insignificant and the sugar mills had to
incur considerable expenditure for disposal of molasses. For
resolving these problems a joint committee of U.P. and Bihar
was constituted in 1938 to explore the possibilities of using
molasses for developing alcohol-based industries. The
Committee recommended establishment of distilleries for
production of alcohol, utilizing molasses as a substrate.

The committee also recommended that alcohol produced by

the distilleries should be admixed with petrol, to supplement
motor fuel. This helped in solving the problems of disposal of
molasses. It also filled up the gap in the demand and supply of
motor spirit.

As a result, after meeting alcohol requirement for manufacture

of gasohol, substantial quantity of alcohol was diverted for
production of alcohol based chemicals.

3.1.2 Present Status

Fossil fuels are declining. Transportation sector consumes

more than 50% of the fuels. Environmental degradation from
these fuels is a major problem all over the world. World oil
production is expected to last till 2125 A.D., if consumption at
the present level is maintained. On this background the use of
Ethanol for fuel blending should be given a top priority.

India requires ethanol for the following three major purposes:-

For potable liquor

For industrial use
For fuel blending

Today, the distillery industry of India uses only molasses for

manufacturing alcohol. There are handful of grain distillery
units (e.g. Seagram Manufacturing Ltd.) and the alcohol
produced by them is used for captive use to make value added
liquors. All other liquor (IMFL) manufacturers use alcohol
produced from molasses. In advanced countries, liquor for
 human consumption is made only from grain alcohol. It is
known that alcohol produced from molasses can have
residues such as sulphates, sulphites, higher aldehydes,
higher alcohols, higher acids and ketones etc., which are
not present in alcohol from, grains.

However, no such above-mentioned distinction is made in

India. Thus alcohol produced only from one source i.e.
molasses is used for all 3 purposes (liquor, industrial use, fuel
blending). There is an urgent need to bring in above quality
consciousness in the IMFL industry and appropriate policy
measures by the Govt.

Today, Indian distillery industry broadly consists of two parts:

One is alcohol production from molasses for industrial alcohol

and two alcohol production from molasses for liquor purposes.

Ethanol demand for fuel blending is a recent phenomenon.

For this purpose, alcohol from molasses is used.

The potable distillery producing Indian Made Foreign Liquor

(IMFL) has a steady but limited demand. The alcohol produced
is now being utilized in the ratio of approximately 52 per cent
for potable purpose and the balance 48 percent for industrial
purpose.

3.1.3 Ethanol Blending Program in India

Ethanol blending is the practice of blending petrol with

ethanol. Many countries, including India, have adopted
ethanol blending in petrol in order to reduce vehicle exhaust
emissions and also to reduce the import burden on account of
crude petroleum from which petrol is produced. The
renewable ethanol content, which is a by product of the sugar
industry, is expected to result in a net reduction in the
emission of carbon dioxide, carbon monoxide (CO) and
hydrocarbons (HC). Ethanol itself burns cleaner and burns
more completely than petrol it is blended into. In India,
ethanol is mainly derived by sugarcane molasses, which is a by-
product in the conversion of sugar cane juice to sugar.

The practice of blending ethanol started in India in 2001.

Government of India mandated blending of 5% ethanol with
petrol in 9 States and 4 Union Territories in the year 2003
and subsequently mandated 5% blending of ethanol with
petrol on an all-India basis in November 2006 (in 20 States
and 8 Union
Territories except a few North East states and Jammu &
Kashmir). This was also an attempt to reduce the Under-
recovery of Public Sector Oil Marketing Companies (OMCs). In
countries like US, blending is allowed upto 10%. Subsequent
to Brazil's bio-fuel program, which began in 1976, close to
94% of cars sold in Brazil are flexible fuel cars that can handle
ethanol blends from 18 per cent upward.

Ethanol blending first found mention in the Auto fuel policy

of 2003. It suggested developing technologies for producing
ethanol/ bio fuels from renewable energy sources and
introducing vehicles to utilise these bio fuels. Later, as per
National Policy on Bio-fuels, announced in December 2009,
oil companies were required to sell petrol blended with at
least 5% of ethanol. It proposed that the blending level be
increased to 20% by 2017.

Ethanol, being a by product of the sugar industry, was

expected to be freely available. However, Oil marketing
companies (OMCs) were not even able to get bids for more
than 50% of the amount offered for purchase. Further, the
Government decided on 22.11.2012 that procurement price of
ethanol will henceforth be decided between Oil Marketing
Companies (OMCs) and suppliers of ethanol. In addition, on
03.07.2013, it was decided that ethanol would be procured
only from domestic sources. This led to a rise in ethanol
prices, which to a great extent reportedly eroded the economy
of the blend. At present, government has permitted OMCs to
implement the ethanol blending program in notified 20 States
and 4 Union Territories as per the availability of ethanol.

There are reportedly significant transaction barriers which

impede smooth supplies of ethanol for blending. In several
States, State not only imposes levy on molasses but also
regulates the movement of non levy molasses. Inter-state
movement of ethanol requires No-Objection-Certificates
(NOCs) from the State Excise Authorities along with permits
from dispatching and receiving States. Most States impose
“Export/Import” duties on ethanol leaving and entering their
boundaries. There are some instances where Octroi is levied
on ethanol for entry into municipal limits. Hence States were
requested by the Central Government to liberalise restrictions
on the supply of ethanol so that its blending with petrol can
be encouraged while improving the financial health of sugar
sector and also liquidation of cane dues of farmers.
 As per the estimates given in Auto Fuel Vision and Policy 2025
issued in May 2014, blended petrol is available only in 13
states and the average blend is 2%.

Hence, in order to improve the availability of ethanol, the

Government, on December 10, 2014, fixed the price of Ethanol
in the Range of Rs. 48.50 to Rs. 49.50, depending upon the
distance of distillery from the depot/installation of the OMCs.
(The rates are inclusive of all central and statutory levies,
transportation cost etc, which would be borne by the Ethanol
suppliers). Further, ethanol produced from other non-food
feed stocks besides molasses, like cellulosic and ligno
cellulosic materials including petrochemical route, has also
been allowed to be procured subject to meeting the relevant
Bureau of Indian Standards (BIS) specifications. The ethanol
rates further reduced by the Government of India from
Rs.49.50 / Ltr to Rs.43.46/Ltr.

3.1.4 State wise Ethanol Manufacturing Installed Capacity

The state wise ethanol manufacturing Installed Capacity is

given below:

Sr. State No. of Units Installed Capacity

No. KLPD KLPA
1 Bihar 5 275 74250
2 U.P. 33 2321 699900
3 Punjab 1 40 12000
4 Andhra Pradesh 16 555 166500
5 Tamil Nadu 8 320 96000
6 Maharashtra 63 2455 736500
7 Gujarat 10 340 101100
8 Karnataka 16 1000 300000
Total 152 7306 2186250

3.1.5 Demand Supply for Ethanol

Ethanol is blended in the fuel to reduce the dependence of the

country on crude imports generally, and also ethanol is a
cleaner fuel. ‘E20’ is a term to express 20% blending in the
fuel.
The market for ethanol would increase with the increase in
blending percentage, blending units and number of vehicles.
Therefore, there is good scope for ethanol plants in coming
years.

Company will not face in difficulty in marketing ethanol at

optimum level of operations.

India has ~330 distilleries which can produce over 4 bn litres

of rectified spirit (alcohol) per year. Of these, ~162 distilleries
have the capacity to distil over 200 cr litres of conventional
bio-ethanol. India produces conventional bio-ethanol mostly
from sugar molasses and partly from grains.

According to Indian Sugar Mills Association (ISMA), Ethanol

supply to oil marketing companies for blending with petrol
will rise 71 per cent in 2017-18 season to touch record 113
crore litre Which was around 66 crore litre of ethanol was
lifted by OMCs (oil marketing companies) for the ethanol
blending programme in 2016-17 season (December
November). The previous record was 111 crore litre in 2015-
16.

According to Indian Sugar Mills Association (ISMA) 313 crore

litre of ethanol is required for 10 per cent blending across the
country. The offer of 155 crore litre was sufficient for 5 per
cent blending.

Out of the 113 crore litrefinalised by OMCs, the largest

quantity will be supplied by sugar companies and ethanol
manufacturers in Uttar Pradesh at 44.3 crore litre, followed
by Maharashtra at 40.3 crore litre.

As per the finalised quantities, the ethanol blending with

petrol percentages will be excellent in UP at 9.6 per cent,
followed by Maharashtra at 8.6 per cent and Bihar at 7 per
cent during this season.
 3.1.6 World Ethanol Production

The world ethanol production is given in the following table:

World Fuel Ethanol Production by Country or

Region (Million Gallons)
Country 2007 2008 2009 2010 2011 2012 2013 2014

USA 6521 9309 10938 13298 13948 13300 13300 14300

Brazil 5019 6472 6578 6922 5573 5577 6267 6190

Europe 570 734 1040 1209 1168 1179 1371 1445

China 486 502 542 542 555 555 696 635

Canada 211 238 291 357 462 449 523 510

Rest of
World 315 389 914 985 698 752 1272 1490

WORLD 13123 17644 20303 23311 22404 21812 23429 24570

Data Source: F.O. Licht, cited in Renewable Fuels Association, Ethanol Industry
Outlook 2008-2014 reports. Available at www.ethanolrfa.org/pages/annual-
industry-outlook

Graphical Presentation of world ethanol production is given below:

Global Ethanol Production by Country/Region

and Year
30

25
Billion Gallons

Rest of World
20
Canada China Europe Brazil
USA
15

10

-
20072008200920102011201220132014
gov/data/
3.1.7 ENA Marketing

The market for ENA is increasing day by day. Company will

not face in difficulty in marketing ENA at optimum level of
operations.

The prevalence of alcohol use is still low in India as per

some studies done across the country. The consumption is
two liters per person per year.

However, though the overall consumption is low, patterns of

alcohol consumption vary throughout the country. Punjab,
Andhra Pradesh, Goa and North-Eastern states have much
higher proportion of alcohol consumption in the country.

India’s country liquor industry is known for chaotic

business, and estimated at Rs. 250 billion, with annual
volume sales of over 220 million cases. Of course, the India-
made liquor (IML) sales are pegged at around 160-170
million cases, and growing at 8 to 10 per cent annually.
Annual growth rate of around 10-12% over the past five
years.

The Indian alcoholic beverages industry is expected to witness

accelerating growth in coming years with the consumer base
likely to expand fast. The domestic alcoholic drinks market
has been growing at an astounding rate in the past few years.
The growth rate is higher than other major Asian markets like
China and South Korea.

IML and country made liquor account for the bulk of

alcoholic consumption. The Indian beer Industry has been
witnessing a steady growth rate of 7-9% per year for the last
ten years.

The IML industry can be broadly classified into products

based on Extra Neutral Alcohol (ENA) and Rectified Spirit (RS).
ENA-based products, which are of better quality and have a
longer shelf life. The low-priced RS segment is quite price-
sensitive and characterized by the presence of a number of
small players.

The IML market is categorized primarily into whisky, brandy,

rum, vodka and gin, with market share heavily skewed
towards whisky.
IML accounts for only a third of the total liquor consumption
in India. Most IMLs are cheap and priced very low. Whisky
accounts for 60% of the liquor sales, while rum, brandy and
vodka account for 17%, 18% and 6% respectively.

There are two types of brandy one is white and other is brown.
White brandy is used for the use by human beings and the
brown for other purpose.

India presents a huge growth potential for alcoholic beverages

sales. The government is planning to do away with the license
requirement for manufacturing potable alcohol. Scrapping the
licensing requirement would boost manufacture of beer, wine,
whisky, rum, brandy and other alcoholic beverages.

Increasing GDP, favorable growth in the demographics with a

growing urban middle class, growth of modern retail formats,
hopeful rationalization of the taxation rules and ban on local
country liquor and rising health consciousness, age
preferences will act in favor of the growth of alcoholic
beverages in India in the near future.

IML sales in different States, classified on the basis of the

distribution channel accessible to the manufacturer, are given
below:

Open Market: Maharashtra, West Bengal, J & K, Goa, Assam,

Meghalaya, Tripura, Arunachal Pradesh

Auction Market: UP, Rajasthan, MP, Punjab, Chandigarh,

Haryana

Government-controlled Tamil Nadu, Delhi, Kerala, Andhra

Pradesh

Prohibition States Gujarat, Bihar, Manipur, Mizoram,

Nagaland

South India is the largest consumer in the Indian liquor

market, with Andhra Pradesh showing the highest
consumption, at 25 Million cases, and a growth rate of 100%.
In Kerala too, the consumption of liquor is high.
Consumption in South India has been growing at a very high
rate, compared to North India, which grew at 2% last year.
The respective growth rates for some of the regions are given
below:

State Cases(in Approx. Liters

Millions)
Andhra Pradesh& 25 75
Telangana
Bengal 3 9
Assam 3 9
Mumbai and 9 27
Maharashtra
Delhi 4 12
Haryana 4 12
Punjab 4 12
Rajasthan 4 12

This has been growing over the years at an average rate of 12-
15% per annum. Whiskey accounted for the largest share in
the total IML market (about 53%). There is a good scope for
new entrants.

Thus, there is significant latent demand and vast scope for

growth in liquor consumption, both in the urban and
prosperous rural areas, once the regulatory environment is
relaxed.

As there is constant growth of consumption by 8-10% every

year. It always proposes to carry out market research for
the proposed extra neutral alcohol.

By considering the above factors, company will not face any

difficulty in marketing the Ethanol and ENA at optimum level
of operations.
 CHAPTER – 4

TECHNICAL FEASIBILITY - MOLASSES BASED

60 KLPD DISTILLERY AND 40 KLPD GRAIN BASED DISTILLERY
PLANT

4.1 60 KLPD Distillery Plant based on Molasses

4.1.1 The proposed distillery plant will have manufacturing capacity

of 60 KLPD. The distillery plant will be operated using steam
and power that will be generated from the separate boiler &
turbine to be employed for the project.

4.1.2 The plant will operate on molasses as feed stock. The design
parameters of the Distillery plant are given in the following
table:

Sr. Item Ethanol Plant on

No. Cane Molasses
1 Cane crushing after proposed 3500
expansion, MT/day
2 No. of season days 143
3 Cane crushing, MT 500000
4 No. of days of operation of 330
Ethanol Plant
5 Ethanol capacity, KLPD 60
6 Molasses, % cane 4.50
7 Molasses Generation, MT per 22500
annum
8 Ethanol recovery, liters / MT of 250
molasses
9 Quantities
Molasses required MT per day 240
Molasses required MT per 79200
Annum at 100% capacity
utilization
10 Molasses to be procured from 56700
outside, MT
11 Ethanol Plant Operation in Days
@ 100% capacity utilization
- On Own Molasses 94
- Procured Molasses 236
12 Steam Balance
 Sr. Item Ethanol Plant on
No. Cane Molasses
12.1 Steam Generation, TPH 20.00
12.2 Steam Consumption
a) Process, TPH 16.00
b) Deaerator, TPH 4.00
13 Power Consumption, MW 2.00
14 Fresh Water requirement, KL/Hr 12.50
15 Spent wash generation before 25.00
evaporation, TPH
16 Spent wash generation after 10.00
evaporation, TPH
17 Support Fuel i.e. Bagasse 4.00
Requirement, TPH

4.2 Process, Special Features and Performance

The process description is as follows:

4.2.1 Process

a) Distillery

 Fermentation

Molasses, diluted with water to the desired concentration

is metered continuously into a single tank fermenter.
Additives likes’ urea (in the form of pellets or prills) and
defoaming oil are also introduced in the fermenter as
required. There is an automatic foam level sensing and
dosing system for defoaming oil.

Every kilogram of alcohol produced, generates about 290 k

cals of heat. This excess heat is removed by continuous
circulation of fermenting wash through an external plate
heat exchanger called the Fermenter Car. The fermenter
temperature is always maintained between 32 and 35 deg.
C, the range optimum for efficient fermentation.

The yeast for the fermentation is initially (i.e. during start-

up of the plant) developed in the Propagation Section
described further on. Once propagated, a viable cell
population of about 500 million cells/ml is maintained by
yeast recycling and continuous aeration of the fermenter.
Fluctuations in the yeast count of +/- 20% have little effect
 on the overall fermenter productivity. Yeast cell vitality
which is usually above 70% may, in times of stress. (Such
as prolonged shut-downs) drop to 50% without affecting
the fermentation.

 Yeast Recycling :

The yeast in the fermented wash is removed as 45 to 555

v/v slurry, and is returned to the fermenter. This feature
ensures that a high yeast cell concentration is achieved
and maintained in the fermenter. By recirculating grown,
active yeast, sugar that would have otherwise been
consumed in yeast growth is made available for ethanol
production, ensuring high process efficiency.

 Distillation

Clarified or de-yeasted wash flows by gravity to the

propagation vessel no. III, which during continuous
production, operates as an intermediate wash tank. From
here, fermented wash is pumped to the wash preheater,
which uses vapours from the rectifying column to preheat
wash. Further heating is done in an exchange of heat with
weak wash and spent wash (see flow sheet for primary
distillation)

Preheated wash then enters the degasifying column of the

distillation section.

 Primary Distillation

The CO2 and the degasifying section help remove the CO2
and other non-condensable entrained in the wash. The wash
column is first column in the distillation section. It is also
called the analyzer. Wash is boiled in this column with
steam either supplied as live steam from the boiler (after
pressure reduction and de-superheating) or from a reboiler
which generates steam by evaporating effluent wash.

Alcohol in wash vaporizes and is carried, along with water

vapour, to the top of the wash column from where it goes
to the rectification column. As wash travels down the
analyzer, it is progressively ‘stripped’ of its alcohol content.
At a point in the column, where the alcohol concentration
is 0.5 to 1.0% v/v, a portion of the wash is drawn off. This
is called weak wash.
 Weak Wash Recycling :

Weak wash recycling of weak wash helps maintain the

desired level of dissolved solids in the fermenter, so that an
adequately high osmotic pressure is achieved. Osmotic
pressure and the concentration of alcohol in the fermenter,
together keep off infection and minimize sugar losses.
Weak wash recycling also reduces the quantity of effluent
spent wash and reduces the process water requirement of
the plant.

Spent wash is the wash from which all alcohol has been
removed; this emerges from the bottom of the wash column
at about 105 deg C. Some of the heat is recovered to
preheat fermented wash entering the degasifying column.

Spent wash may also be passed through a forced

circulation reboiler to generate vapours. This concentrates
the effluent and reduces the volume further.

 Propagation

The propagation section is a feeder unit to the

fermenter. Yeast, either
Saccharomyeescereviseae or
Schizosaccharomyeespombe (the choice being
determined by other process parameters, mainly the
downstream effluent treatment system) is grown in 3
stages. The first two stages are designed for aseptic
growth. Propagation vessel III develops the inoculum
using pasteurized molasses solution as the medium. This
vessel has a dual function. During propagation, it serves
for inoculum build- up. When the fermenter enters the
continuous production mode, Propagation Vessel III is
used as an intermediate wash tank. Propagation is
carried out only to start up the process initially or after
very long shut-downs during which the fermenter is
emptied.

 CO2 Scrubbing and Recovery

The carbon-di-oxide produced during fermentation is

scrubbed with water in packed-bed scrubber, to recover
alcohol. The water from the scrubber is returned to the
fermenter. About 1.0% of the total alcohol production is
saved by scrubbing the fermenter off gas. In plants where
it is desired to recover carbon-di-oxide, a part of the wash
is drawn into a separate vessel and is aerated there. This
external aeration allows the recovery of CO2
 uncontaminated with air. More details of this system can
be supplied on request.

 Fermentation Parameters (Typical)

The pH of the fermenter is maintained between 4.0 & 4.8

usually without addition of any acid. The alcohol
concentration is maintained between 7.0 & 7.5 % v/v,
unless a highly concentrate effluent is to be produced. To
reduce the effluent volume, the fermenter is operated at a
very high dissolved solids level by increasing the proportion
of weak wash recycle. Under these conditions, alcohol
concentration is reduced to between 5.5 to 6.0% v/v.

Conversion of sugar to ethanol is instantaneous, and the

residual sugar concentration is maintained below 0.2 %
w/w as glucose.

This usually corresponds to a residual reducing

substances concentration of 2.0 to 2.5 % w/w in wash.

All the nutrient elements necessary for yeast growth exist

in adequate quantities as impurities in molasses.
Occasionally, Nitrogen may have to be supplemented.
Defoaming oil (DFO), say Turkey Red Oil is added to the
fermenter by an automated DFO dosing system, to control
foaming. Usually no other additives are required.

 Flexibility :

This process accords tremendous flexibility to the operator.

Process conditions and plant design can be varied to suit
individual requirements of alcohol quality, effluent
concentration and characteristics. This unit can give spent
wash suitable for use in any effluent treatment process.

 Wash Clarification:

Fermented wash is then clarified in wash settling tank with

proper settling time and overflow of clarified wash is
collected in Clarified wash tank/buffer tank further feed to
distillation. To minimum losses/alcohol recovery in wash
clarification is taken care by further clarification. At the
bottom of wash settling tank sludge along with wash is
mixed with scrubber water which content alcohol from Co2
scrubber and further allowed to settle in sludge settling
tank with proper settling time and overflow is further
 collected to clarify wash tank. Final sludge will be drained
our sludge settling tank. Optionally, separated sludge from
wash settling tank the washed sludge with scrubbed
water is feed to centrifuge decanter in which clear liquid is
collected clarified wash tank and sludge is separated out.

In some technologies optionally Fermented wash passes

through a yeast separator centrifuge. Yeast crème is getting
separated and recycle back to fermentation process with
proper treatment & activation. Clarified wash is collected in
clarifier wash tank and further feed to distillation.

After fermentation process completes, the fermented wash

is sent to wash clarification system includes wash settling
tank, sludge settling tank and sludge trough. Clarified
wash is collected in Clarified wash tank/buffer tank and
sludge is separated/drained out from sludge tank.

After emptying of the fermenter, it is cleaned with CIP

using cleaning nozzles. After CIP fermenter is ready for next
batch to be filled.

b) Multi Pressure, Distillation (Ethanol – Molecular Sieve)

The Distillation Plant offered is a Multi pressure Multi product

distillation system with all prescribed auxiliary equipment and
services as required to produce, as a minimum, the desired
ethanol quality. The system consists of total 4 nos. column
along with related condenser, cers, pump, piping, etc.

The distillation columns provided are as follows:

1) Analyzer column
2) Extractive distillation (Hydro selection)column
3) Rectifier column &
4) Recovery column

The above distillation system runs as below for following

products:

 Export Quality RS : Analyzer Column (Atmospheric)

Hydro selection column (Atmospheric)
Rectifier (Pressure)
Recovery column (Atmospheric)

While producing Export Quality RS, the hydro selection

column is run at lower dilution. The analyzer and
Extractive Distillation column are run in vacuum. The
 overhead vapours of Rectifier are fed to the Analyzer
reboiler. The product is drawn from the top of the Rectifier
Column. The operation of Rectifier under pressure enables
to operate the Analyzer under vacuum. The direct benefit
of such Pressure Vacuum system results in energy saving
and reduces down time in plant operation (cleaning of
scales in Analyzer Column). This further ensures very
good quality of product.

Recovery column is used in the system for further removal

of traces of impurities.

 Anhydrous Alcohol: Analyzer Column (Atmospheric)

Rectifier (Atmospheric)

The rectifier is operated under pressure. The overhead

vapours of the Rectifier are used to heat the reboiler of the
Analyzer. Parts of the vapours of the Rectifier are sent to
the super heater of the Molecular sieve plant. Superheated
vapours are passed through the molecular sieve plant.
Superheated vapours are passed through the molecular
sieve beds for dehydration.

The vapour passes through a bed of molecular sieve beds

and water in the incoming vapour stream is adsorbed on
the molecular sieve material and anhydrous ethanol
vapour exists from the molecular sieve bed.

Hot anhydrous ethanol vapour from the Mol Sieve Units is

condensed in the molecular sieve bed condenser. The
anhydrous ethanol product is then further ced down in the
product cer, to bring it close to the ambient temperature.

The two molecular sieve beds operate sequentially and are

cycled so that one is under regeneration while the other is
under operation, adsorbing water from the vapour stream.
The regeneration is accomplished by applying vacuum to
the bed undergoing regeneration. The adsorbed water from
the molecular sieve material desorbs and evaporates into
the ethanol vapour stream. The mixture of ethanol and
water is condensed and ced against cing tower water in the
molecular sieve beds regenerate Condenser. Any
uncondensed vapour and entrained liquid leaving the
molecular sieve beds regenerate Condenser enters the
molecular sieve beds regenerate Drum, where it is
contacted with regenerated liquid.
 The regenerated liquid is weak in ethanol concentration,
as it contains all the water de-absorbed from the Molecular
Sieve Beds. This low strength liquid is recycled back to the
Stripper / Rectifier Column for recovering the ethanol. The
water leaves from the bottom of the column and contains
only traces of alcohol.

4.2.2 Effluent treatment system

The spent wash of a distillery process is a serious problem by

way of threat to the environment. Its volume from fed
batch/continuous fermentation plant is as large as 480 KL/day
for a distillery of 60 KL/day capacity after evaporation.

The spent wash evaporation technology is a multiple effect

evaporator system in which heat recovered from one effect is
used to concentrate spent wash in second effect evaporator
with continuous recirculation of concentrated spent wash
within the system until desired concentration is obtained. This
entire concentration process is carried out under vacuum
leading to less consumption of steam and maximum
concentration of spent wash with in less period of time.

The concentrated spent wash generated after entire process of

evaporation is then sprayed in a furnace with coal or bagasse
as support fuel and is then burnt in a boiler.

In order to fulfill the pollution norms of UPCB & CPCB and to

achieve zero liquid discharge and at the same time to operate
the ethanol plant for 330 days, OOL proposes to employ spent
wash concentration and incineration technology,
simultaneously generating steam and power required for the
ethanol plant.

With effective utilization of such technology, major hurdle of

spent wash disposal will be solved and the proposed ethanol
plant will become zero liquid discharge units.

Condensate polishing unit (CPU) Process condensate from

multiple effect evaporation (MEE) plant is treated condensate
polishing unit (CPU) and treated condensate and lees will be
recycled back.
4.2.3 Special Features, Performance and Efficiencies
Special features, Performance and Efficiencies of the project
based on this process are as follows:

a) Distillery project

 Truly continuous fermentation process with yeast recycling

 Higher yields – yield of 250 Ltrs of ethanol per ton of

molasses containing 45.5% F.S.

 Lower effluent generation – the process generates only 8ltrs

of effluent per Ltr of alcohol produced (as against 12ltrs per
Ltr of alcohol produced in case of other conventional
processes)

 Yeast recycle – In this process, the yeast is efficiently

separated and fed back to fermenter. Therefore no fresh
yeast is required to add every day. This also avoids loss of
sugar due to yeast growth.

Performance and Efficiencies

 The capacity offered will produce min. 60,000 Ltrs of
ethanol (99.8% v/v) per 24 hrs.
 Fermentation efficiency will be between 90% and the
distillation efficiency will be 98.5%. These efficiencies are
based on stable operating conditions and quality of raw
material used.
b) Anhydrous Alcohol / Ethanol
It is a mature and reliable technology capable of producing a
very dry product. However, its high capital cost, energy
consumption, reliance on toxic chemicals like benzene, and
sensitivity to feedstock impurities, has virtually eliminated the
use of azeotropic distillation in modern ethanol plants.
Benzene has been used as entrainer of choice for ethanol
dehydration but it is now known to be a powerful carcinogen.

Some of the advantages of MOLECULAR SIEVE technology for

ethanol dehydration are as follows:-

1. The basic process is very simple, making it easy to

automate which reduces labor and training requirements,
2. The process is inert. Since no chemicals are used, there are
no material handling or liability problems which might
endanger workers
3. Molecular sieves can easily process ethanol-containing
contaminants, which would cause immediate upset in an
azeotropic distillation system. In addition to ethanol, a
properly designed sieve can dehydrate a wide variety of
other chemicals, thereby providing added flexibility in
future operating options,

4. The molecular sieve desiccant material has a very long

potential service life, with failure occurring only due to
fouling of the media or by mechanical destruction. A
properly designed system should exhibit a desiccant service
life.

5. It can be configured to function as a stand-alone system or

to be integrated with the distillation system. This lets the
customer make the trade-off between maximum operating
flexibility versus maximum energy efficiency,

6. If fully integrated with the distillation system, a steam

consumption rate only slightly above the absolute
theoretical minimum for the separation can be achieved,

7. A properly designed molecular sieve can reliably dehydrate

160 – proof ethanol to 190 + proof, making strict control of
rectifier overhead product quality unnecessary.

Advantages of System:
 Minimal Labor.
 Stable operation.
 Near theoretical recovery.
 Steam consumption minimized by multi-stage preheating
to permit substantial heat recovery and reuse.
 An advanced control system, developed through years of
experience, to provide sustained, stable, automatic
operation.
 Consistent excellent product quality maintain

 The AA produced will be of quality 99.8% v/v.

 The feedstock quality, rectified spirit 95% v/v.

4.3 Utilities

4.3.1 Power

Company has proposed to install a separate 22 TPH high

pressure incineration boiler and 2.00 MW back pressure
turbine to meet the steam and power requirements. The
support fuel i.e. bagasse requirement has been considered at
4 MT/Hr after utilisation of slops.

4.3.2 Steam

Low pressure saturated steam with pressure of 3.5 kg/cm 2 (g).

Temperature: 145oC will be required.

The steam requirement of the process plant for distillery,

Ethanol and evaporation is 16 TPH and for deaerator is 4 TPH.
Company proposes to install incineration boiler in which the
concentrated spent wash along with support fuel bagasse
around 4 TPH will be burnt.

4.3.3 Water

OOL proposes to utilize the ground water for the distillery

project. OOL proposes to secure the water drawl permission
from Irrigation authority to lift the underground water. The
raw water will be stored in water reservoir and will be treated
in water treatment plant for further process.

Total process and cooling water requirement for the proposed

project after recycling and reuse is estimated at 5 m3 /KL.

The water for ethanol plant will be met from existing water
supply scheme of the sugar mill. However, the process water
will be treated separately in the water treatment plant to be
provided in the ethanol project.

4.4 Raw Material and Consumables

4.4.1 Raw Materials

The raw material is cane molasses of following specs:
 Fermentable sugar - 38 to 48%
 Brix - 85
 pH - >5
 Growth inhibiting substances - Nil
 The total requirement of molasses for the entire year operation
(330 days a year) of the proposed fuel ethanol plant at 100%
capacity utilization will be around 79200 MT. Considering the
crushing of about 8 lakh MT, in-house molasses will be
available around 36,000 MT and the balance 43200 MT of
molasses will be met out through procurement through nearby
sugar factories and through traders.

Hence, OOL will not face any difficulty to operate its Distillery
plant based on molasses for 330 days if the company make the
firm tie ups with the nearby sugar factory / traders.

4.4.2 Chemicals and Consumables

The following chemicals and consumables will be required:

a) Urea
b) Turkey red oil
c) Caustic soda lye
d) Potassium permanganate
e) Lub oils, etc.

The chemicals and consumables cost is estimated at

Rs.500/KL.

4.5 Effluent Disposal

Due care will be taken in design, implementation and operation of

the captioned project for satisfactory disposal and effective
utilization of plant effluents, waste water and colony waste water.
Scientific treatment will be given to ensure that waste water from all
sources needs the norms stipulated by the Uttar Pradesh Pollution
Control Board and CPCB. The effluent / spent wash will be
concentrated in evaporators and will be burnt in boiler with support
fuel.

In order to fulfill the Pollution Norms and to achieve zero Discharge

and at the same time to operate ethanol plant for the period 330
days per annum, the OOL has proposed to go for spent wash
evaporation and incineration technology along with condensate
polishing unit.

With effective utilization of such a technology big hurdle of spent

wash disposal will be solved and ethanol plant will become zero
effluent discharging unit.
4.6 40 KLPD Distillery Plant based on Grains

4.6.1 The proposed distillery plant will have manufacturing capacity

of 40 KLPD. The distillery plant will be operated using steam
and power that will be generated from the separate boiler &
turbine to be employed for the project.

4.6.2 The plant will operate on grains as feed stock. The design
parameters of the grain based Distillery plant are given in the
following table:

Sr. Item ENA Plant

No. on Grains
1 No. of days of operation of Ethanol Plant 330
2 Distillery capacity, KLPD 40
3 ENA recovery, liters / MT of Grains 410
4 Quantity of Grains required MT per day 97.56
5 Steam Balance
5.1 Steam Generation, TPH 10.00
5.2 Steam Consumption
a) Process, TPH 9.00
b) Deaerator, TPH 1.00
6 Power Consumption, MW 1.00
7 Fresh Water requirement, KL/Hr 8.33
8 DWGS generation after evaporation, 27.30
MT/Day
9 Bagasse Requirement, TPH 5.00

4.7 Process, Special Features and Performance

4.7.1 Milling

Grain is fed to the process by a grain transfer conveyor from

the grain storage silos, which moves it from the adjacent grain
feed elevator. The scalped grain passes into a surge bin that
has an operating capacity of approximately 4 hours. The flow
is controlled out of the surge bin by a weigh feeder, which
moves the grain by the magnetic separator to the hammer mill
where it is ground to a consistent particle size distribution.
Any dust produced in the milling operation is collected and
recycled back into the process using the dust collection
system.
4.7.2 Mashing, Cooking & Liquefaction

The milled grain is transferred by the meal conveyor, under

flow ratio control, to the mash mingle, where it is mixed with
process water and heated mashing water from a hot well. The
flow rates of process water and the backset fraction of heated
mashing water are also under flow ratio control. The meal
slurry is then discharged by gravity from the mash mingle to a
mash mixing tank. The primary purpose of the mash mixing
tank is to provide surge capacity in the cooking system and to
allow for pre-liquefaction of the starch, if necessary, for
viscosity control. Also, caustic or anhydrous ammonia is
added for pH control, if necessary. Mash from the mash
mixing tank is pumped by a cooker feed pump to a jet cooker,
where 150 psig steam is injected under temperature control,
raising the mash temperature to the sterilization temperature
of about 126.7 °C. Injection of steam provides sterilizing of the
slurry in about 10 minutes. Mash leaves the cooker and is
cooled to about 85 °C by flashing in a liquefaction tank. The
flash vapor is recovered as a source of energy for stillage
evaporation. In addition, provisions are made to add backset
(thin stillage recycle) from the solids separation area,
evaporator condensate and rectifier bottoms to the hot well as
part of the hot process water make-up for the mash mingler.
Liquefying enzyme is added to the mash in the liquefaction
tank to begin the hydrolysis of the previously gelatinized
starch. After liquefaction, back set can be added to the mash
to lower the pH. A mash cooler pump pumps the mash from
the base of the liquefaction tank through mash coolers.
Cooling tower water provides for primary cooling to ultimately
reduce the mash temperature to about 32°C.
4.7.3 Fermentation and CIP System
The cooled mash flows to one of a battery of 4-6 fermenters.
Previously hydrated and actively growing yeast as well as
saccharifying enzymes, nutrients and industrial antibiotics are
added to the fermenter during filling. The fermenter contents
are recirculated by fermenter pumps, through fermenter
coolers to remove heat generated by fermentation. The carbon
dioxide generated during fermentation is vented to the ethyl
alcohol absorber. When fermentation is complete, the beer is
transferred to the beerwell via the fermenter pumps. The
beerwell, agitated by the beerwell agitator, provides surge
capacity between fermentation and distillation. Cleaning and
sterilizing the fermenters, fermenter coolers, mash coolers and
 related process piping is accomplished by the automated CIP
system.

4.7.4 Distillation

The beerwell serves as a surge tank connecting the

simultaneous saccharification /fermentation system with
distillation. The contents of the beerwell are kept circulated
by the beer well agitator. The beer, which consists of
approximately 10.0% w/w ethyl alcohol.

The vacuum distillation has many advantages over

conventional distillation atmospheric distillation plants like
lower energy requirement, very good quality alcohol and less
scaling of the distillation trays due to sludge. The vacuum
distillation produces ethyl alcohol of international quality
standards and there is a lot of demand of ethyl alcohol from
the vacuum distillation process.
The Extra Neutral Alcohol produced from this latest
technology will meet most of the international quality
standards for ethyl alcohol like US Pharmacopoeia, British
Pharmacopoeia and Japanese standards.

The multi pressure distillation approximately requires 50%

less steam as compared with the conventional atmospheric
distillation technologies. The vacuum distillation consists of
distillation columns with high efficiency column trays,
condensers, re-boilers, vacuum pumps and reflux pumps. A
closed loop cooling tower system with an induced draft-cooling
tower with circulation pumps is also provided to ensure higher
cooling efficiency and to minimize water wastages.

In this multi pressure distillation ethyl alcohol is separated

and concentrated using principal of fractional distillation. This
is based on difference in boiling points of volatile compounds
in mixture. There are six columns in the system Primary
column also called Mash column, Rectifier column, Hydro
extractive distillation column, Refining column, Aldehyde
Column and Fuel Oil Column

The Primary or Mash column is operated under vacuum and it

is heated using the vapours from the Rectifier column, which
is operated under a slightly higher pressure. The vacuum
operation of the Primary column will help in reducing the
overall energy requirement and also improve the product
quality.
Due to vacuum operation of the Primary column the scaling of
the column trays is minimized and plant can be operated
without stoppage for a longer duration as compared with
atmospheric plant.

The fermented mash is preheated using a beer heater at the

top of the Primary column and followed by a plate heat
exchanger and finally feed to the top of Primary column. The
pre heating of mash in two stages recovers energy and saves
steam required for the distillation. The mash runs down the
Primary column trays from tray to tray, while vapor goes up in
the column contacting the mash at each tray.

As a result of this contact and boiling, ethyl alcohol and other

impurities along with some water are stripped in the form of
vapours and remaining mash in the form of vinasse (effluent)
is disposed off from the bottom of the Primary column for ETP.

When the vapours of ethyl alcohol and other volatile

compounds reach the top, they are separated out from the top
of Primary column and are then condensed in beer heater and
other Primary condensers. The heat is supplied by the
Rectifies vapours from the Re-boilers provided at the bottom of
the Primary column.
One or two reboilers are provided at the bottom of the Primary
column to facilitate the heat transfer from Rectifier column
vapour to Primary column. The vapours from Primary top
condensed in the above condensers are collected and fed to
the Hydro extractive distillation column for purification. The
ethyl alcohol streams from other columns are also diluted with
soft water and are fed to Hydro extractive distillation column
via a feed preheater (plate heat exchanger). A Reboiler is
installed at the bottom of the Hydro extractive distillation
column. Impurities such as Aldehydes and Fusel oil are
removed from the top of the Hydro extractive distillation
column and are fed to Fusel oil concentration column, while
dilute ethyl alcohol along with fewer impurities, are taken
from the bottom of the Hydro extractive distillation column
and fed to Rectifier column middle. Steam is fed to Hydro
extractive distillation column through Reboiler.

A Reboiler is installed at the bottom of the Rectifier column,

which heats the process liquid i.e. alcohol and water received
from the Hydro extractive distillation column, indirectly with
the help of steam. In the Rectifier column, the ethyl alcohol is
concentrated to 96 % by refluxing the Rectifier reflux liquid.
Extra Neutral Alcohol (ENA) is tapped from the top of Rectifier
column, which is directly sent to Refining column for removal
of other low boiling impurities. While the bottom product of
the Rectifier column called spent lees is drained off. The
higher alcohols also called light and heavy fusel oils are
removed from the middle portion of the Rectifier column so
that they are separated from Extra Neutral Alcohol.
Light and Heavy fusel oil from Rectifier column and top cut
from Hydro extractive distillation column plus ester cut from
Hydro extractive distillation column is fed to Fusel oil
concentration column.
The steam is delivered from the bottom of the Fusel oil
Column to allow the desired etc. are concentrated near
middle portion of Fusel oil concentration column and can be
removed. It is separated in the Fusel Oil Decanter where
sufficient higher concentration and by addition of water and
based on density difference. While the bottom product called
spent lees is drained off.
The top product from the Fusel Oil Column is cooled in the
cooler and sent to storage as Technical Alcohol.

The Refining column is fed with the ENA from the Rectifier
column, which is boiled off in the Refining column to remove
the low boiling impurities like methanol and mercaptants.

Extra Neutral Alcohol (ENA) is tapped from the bottom of the

Refining column, which is cooled upto 30 0C, by passing
through ENA cooler.

The impure ethyl alcohol, which contains many impurities, is

drawn from the top of the Refining column and cooled in the
cooler and sent to storage as Technical Alcohol. Alternatively
diluting with soft water in Aldehyde Column as and when
required can further purify some of these Technical Alcohol
streams.

Both fermentation and distillation are operated with PLC

computer controls system. This will help in maintaining the
parameters consistent and without any fluctuations. Most
modern distillery plants use computer system for controlling
their parameters.

Advantages of Vacuum multi-pressure Distillation:

 Multi-pressure operation results in to good overall energy
savings over a longer period.
 Vacuum operation (low temperature) of Mash column
ensures minimum scale formation of the trays / other
 column internals and hence very low cleaning frequency of
Mash column is required.
 Lower temperature operation also ensures good quality
alcohol, due to less pyrolysis impurity formation in Mash
column.
 Much better stripping (separation) of low boiling impurities
takes place under vacuum conditions.

Simple ENA distillation scheme:

 The distillation scheme consists of optimum number of
distillation columns and their configurations, allowing
lower capital cost.
 The scheme of distillation is very simple and allows easy
operation.
 The simple distillation scheme allows for a cost effective
level of automation using PLC system.
 The overall electricity requirement is also low, as compared
to other complicated multipressure distillations.

4.7.5 Centrifugation /Decantation

Stillage from the bottom of the beer stripper is pumped to

stillage centrifuge that splits the feed into two flows: the cake
and the centrate. The cake consists of approximately 33-35
wt. % solids (mostly suspended solids) and 65- 67 wt. %
water. The centrifuge is positioned to discharge the cake into a
conveyor carrying the wet cake to the cattle feed storage.
Centrate, consisting of approximately 8.0 wt. % total solids, of
which the majority is dissolved solids, is collected in a
centrate surge tank to provide central surge capacity near the
centrifuge units. A centrate surge tank pump re-circulates the
contents prior to feeding forward to the evaporator feed tank.
A provision is made to permit using “backset” in the
liquefaction step during mashing and cooking without risk of
generating infection.

4.7.6 Evaporation

The evaporation step consists of a multi-effect package unit

and operates on a continuous steady state basis. The
evaporator system removes water from the thin stillage,
concentrating the total solids fraction to approximately 30-
35% w/w solids. The evaporator condensate is recycled back
to the process as dilution water for the mashing process and
CIP rinses. CDS is recovered from the first effect flash drum
by the product pump and stored in a syrup tank. The syrup is
 then pumped to the cattle feed storage using a syrup transfer
pump.

4.8 UTILITIES

4.8.1 Power
OOL proposes to have own power generation through boiler &
turbine. Power supply from its own DG set during start up
and in case of emergency and later on only through own
generation. The estimated load will be 1.00 MW.

4.8.2 Steam

 Low pressure saturated steam with pressure of 3.5 kg /cm 2

(g). Temperature: 145oC

 Medium pressure saturated steam with pressure of 8 kg

/cm2 (g). Temperature: 172 oC

The steam requirement of the process plant for distillery, ENA

and evaporation is 9 TPH. Company proposes to utilise
bagasse for the boiler. 5 TPH bagasse will be required.

4.8.3 Water:

Total process and cooling water requirement for the proposed

project is estimated at 200 m3/day.

OOL proposes to use ground water from own bore well from
the site. However, the process water will be treated separately
in the water treatment plant to be provided in the distillery
project. Stand alone DM water plant, software plant is
proposed for this project.

4.9 Raw Material and Consumables

4.9.1 Raw Materials

The raw material required is various types of damages cereal

grains. About 32195 MT of damaged grains will be required for
330 days of operation. This raw material will be available from
area of operation through farmers / traders.
Hence, OOL will not face any difficulty to operate its Distillery
plant based on damaged cereal grains for 330 days if the
company make the firm tie ups with the farmers / traders for
supply of damaged cereal grains.
 4.9.2 Chemicals and Consumables

The following chemicals and consumables will be required:

 Nutrients like Urea.

 Anti foaming agents.
 Caustic Soda Enzymes like Amylolucosidase, Viscozyme and
Alfa amylase
 Sulphuric acid
 Calcium Hydroxide
 Sodium Hydroxide
 Neutrase
 Yeast
 Cleaning chemicals

The chemicals and consumables cost is estimated at

Rs.500/KL.

4.10 Effluent Disposal

Due care will be taken in design, implementation and operation of

the captioned project for satisfactory disposal and effective
utilization of plant effluents, waste water and colony waste water.
Scientific treatment will be given to ensure that waste water from all
sources needs the norms stipulated by the Uttar Pradesh Pollution
Control Board and CPCB.

Grain based 40 KLPD distillery generated effluent / spent mash will

be first decanted in centrifuge decanted where the wet cake will be
get separated and balance mash will be concentrated in evaporators
and generated syrup will mixed with wet cake, which will sold as
DWGS to cattle feed manufacturers.

In order to fulfill the Pollution Norms and to achieve zero Discharge

and at the same time to operate grain based distillery plant for the
period 330 days per annum, the OOL has proposed to go for
decantation, spent mash evaporation along with condensate
polishing unit.

Considering rich source of protein and with effective treatment of

decantation and evaporation technology big source of protein in of
spent sash will be recovered and produced DWGS become good
selling value and distillery plant will become zero effluent
discharging unit.
4.11 Project Location and Infrastructure

Company has already acquired land for their sugar mill &
earmarked about 22 acres of land for its distillery project. Details of
location & infrastructure advantages are as below:

Site location : Aurangabad

Distance from nearest Tehsil : Nawabganj, 5 Km
Distance from nearest Railway : Bijaria, 7 Km
Station
Distance from Nearest District : Bareilly, 27 Km

The proposed site is ideal for the proposed distillery project, due to
following reasons:

 Required land is available at the project site and is owned by

OOL
 The sugar mill is located in Bareilly District. There is wide scope
of sugar cane cultivation. Along with Bareilly District
neighboring districts producing rice and maize as grain source
for distillery plant operation.

 The Plant is well connected by road, railway and air port. Bijaria
Railway station is 7 Km away from the site. The nearest town is
Nawabganj which tehsil head quarter 5 Km away from the site.

 SEB power and Communication facilities viz. Tele

communication and postal services are easily available.

 Required grains are available in the district.

4.12 Project Cost

4.12.1 Land

The company has earmarked about 22 acres of land for the

proposed 100 KLPD distillery based on molasses and grains as
feed stock. The land cost is not considered in the project cost.

4.12.2 Site Development

The cost of levelling, filling, internal roads, fencing, green belt

development, sewerage and drainage, etc. has been estimated
at Rs.159.30 lakh, as detailed below :
 # Particulars Amount,
Rs. Lakh
1 Leveling and grading 25.00
2 Compound with Fencing & Gate 50.00
3 Internal Roads & Culverts 30.00
4 Green Belt Development 15.00
5 Sewerage and Drainage 15.00
6 Sub-total 135.00
7 Add : GST 24.30
8 Total 159.30

4.12.3 Buildings and Civil Works

The buildings and machinery foundations for 100 KLPD
distillery plant is estimated at Rs. 1758.20 lakh, as given
below :

# Particulars Amount,
Rs. Lakh
1 Distillery Building 450.00
2 Raw and treated water storage, WTP Building
& Foundations 100.00
3 Spent wash Storage Lagoons 150.00
4 Bulk Molasses Tank Foundation 80.00
5 RS/ENA/Ethanol Storage Tank Foundations 180.00
6 Grain Silo Foundation 90.00
7 Boiler & Auxiliaries Civil work 200.00
8 Turbine & Auxiliaries Foundations 100.00
9 Ash & Fuel Handling System, civil work 60.00
10 CPU Civil work 60.00
11 Distillery and Excise Office 20.00
12 Sub-total 1490.00
13 Add : GST 268.20
14 Total 1758.20
4.12.4 Plant and Machinery
The erected cost of plant and machinery for 100 KLPD
Distillery plant including boilers and turbines is estimated at
Rs. 10325.000 lakh based on the discussions with the
machinery suppliers. The detail breaks up of cost of plant and
machinery is given below:

# Particulars Amount,
Rs. Lakh
1 Turnkey supply of 60 KLPD distillery based 3600.00
on molasses and 40 KLPD distillery based on
 Grain incl. and 60 KLPD ethanol plant, Plant
electrical, auxiliary cooling tower, Air
Compressor, etc.
2 Alcohol/Ethanol / ENA Storage Tanks and
Staging Structure for distillery plant 700.00
3 Condensate Polishing Unit (CPU) 200.00
4 Integrated and Standalone evaporation 950.00
5 Turnkey supply of Boiler & Turbine,
auxiliaries and fuel & ash handling 3300.00
6 Sub-total 8750.00
7 Add : GST 1575.00
8 Total 10325.00

4.12.5 Miscellaneous Fixed Assets

Company proposes to acquire following miscellaneous fixed
assets:
# Particulars Amount,
Rs. Lakh
1 Office furniture and fixtures 10.00
2 Cabling and Power distribution cost 50.00
3 Yard and utility piping for raw and treated
Water, molasses, steam, steam condensate, 200.00
process condensate and spent wash
4 Lab Equipment 40.00
5 Water Treatment system with RO 250.00
6 Molasses Storage Tank and Grain Silo 250.00
7 Firefighting system 100.00
8 Sub-total 900.00
9 Add : GST 162.00
10 Total 1062.00
The erected cost of misc. fixed assets is estimated at
Rs.1062.00 lakh.

4.12.6 Preliminary & Preoperative Expenses

The preliminary and preoperative expenses have been

estimated at Rs.610.94 lakh.

# Particulars Amount,
Rs. Lakh
1 Project Report / TEV Study 4.00
2 Legal fees and other expenses 2.00
3 Establishment charges 3.00
 4 Rent, rates and taxes 3.00
5 Travelling Expenses 5.00
Government Clearances 7.00
6 Start up expenses including wages &
salaries 7.00
7 Technical Consultant's Fees 25.00
8 Architect Fees 38.35
9 Project Insurance during construction 2.04
10 Interest During Construction (IDC) 587.41
11 Mortgage expenses, bankers charges, stamp
duty, etc. 60.00
Total 743.80

4.12.7 Contingencies

The contingency has been provided at 1% on non-firm costs at

Rs.140.42 lakh.

4.12.8 Margin Money for Working Capital

The margin money on working capital is estimated at Rs.

279.62 lakh based on the inventory considered.

4.13 Manpower
4.13.1 The category wise details of personnel required for
production, maintenance, administration and marketing,
including their salary levels and total manpower cost.
These have been worked out on the basis of discussions
with the experts in the industry.
Company shall engage suitably qualified and experienced
key technical staff by offering attractive remuneration
packages. The key staff shall be recruited at such a time
that it will receive on the job training on production,
maintenance, quality control, etc. when the plant is being
commissioned and trial runs are being taken.
Company shall operate human resource development policy
as ongoing basis, through formalised in-plant training on
key activities and also deputing its personnel to participate
in seminars, training programmes, etc. for keeping abreast
with the latest developments in process, products,
applications, etc.

4.13.2 Functional requirements are given in detail in the following

table:
Sr. Category No.
Minimum Function
No. Qualification
A. DIRECT LABOUR AND SUPERVISORY STAFF
A.1 Skilled 32 ITI Trained Maintenance/ Plant
Operation
A.2 Semi-Skilled 18 Experience in Assistance for
Operation of maintenance/
distillery Operation
equipment/
machinery, boiler
& turbine
A.3 Unskilled 18 Experience in Assistance to
Operation of operators/
distillery technicians for
equipment/ repairs material
machinery movement and
weighment, etc.
A.4 Lab / Shift Chemist 8 B.Sc. Supervision of
Production
A.5 General Manager 1 M.Tech. Management
experience in of Production
distillery and
management Administration
A.6 Distillery Incharge 2 B.Sc. Alco Tech. Day to day
experience in management and
distillery operation,
management production, etc.
A.7 Maint. Manager 1 B.E. Mech. Maintenance of
plant
A.6 Assistant Engineer 4 Diploma in Mech. Supervision of
preventive and
break down
maintenance,
periodic plant
equipment
inspection and
management of
quality control of
input and output
material
A.7 Instrumentation 4 Diploma / Degree Regular electrical
and Electrical in and
Engineer Instrumentation instrumentation
and Electrical maintenance,
turbine operation
B. ADMINISTRATIVE STAFF
B.1 Accountant 2 Graduate - Maintenance of
B.Com/C.A with account record
5 years assistance for
experience finance
management/
 Sr. Category No. Minimum Function
No. Qualification
banking
B.2 Clerks 5 B.A/B.Com. Maintenance of
record ,
assistance for
stores/inventory
management
B.3 Watchman 4 S.S.C Security of factory
B.4 Marketing and 3 M.B.A. Procurement of
Procurement Staff Grains and
marketing of
DWGS & ENA

4.14 Plant Layout

Major layout design issues, which will have to be considered while

developing the proposed plant layout, are as follows:

• Available land for the project at site location

• Topography of the land and contour limitations
• Area requirements for various plant buildings, storage areas,
admin building, boiler, turbine, miscellaneous areas, etc.
• Direction / velocities of wind.
• Optimum men and material movement
• Minimum length of high pressure piping
• Minimum lengths of interface systems between the fuel ethanol
plant and sugar mill
• Disposal of ash / spent wash
• Spent mash treatment
4.15 Implementation Schedule

4.15.1 Project Implementation

For implementing this project within the desired time and

cost schedules, it is essential to undertake meticulous
planning, right from the conceptual stages. Following
aspects of the project implementation will be crucial:

 Effecting timely project development activities, including

securing various approvals / NoC’s / permissions
for each component of the project.

 Appointment of pre-investment consultants and experts

for preparation of DPRs, approaching select FIs /
bankers, rendering required follow up and achieving
financial closure, through raising of required equity and
providing necessary securities. The company has already
appointed individual experts / advisors for this work.

 Finalization of mode of project implementation, package

route and O&M contracts for individual project
components, along with strong owner engineering /
consultancy team for effective monitoring of the
implementation / commissioning of each component as
per the schedule, is recommended. The company has
experienced in-house project team for the purpose.

 Manpower and resource mobilization at required time

and effectively

4.15.2 Project Schedule

The zero date of the project starts from the date of

achieving financial closure, expected to complete within 2-3
months. The total implementation period is estimated at 10
to 12 months from the financial closure.

The detailed PERT / CPM networks for individual

components and overall project will have to be prepared by
the time of achieving the financial closure.
The implementation schedule is given below:

Activity Starting Completion

Date Date
Acquisition of land - Completed
Start of Civil Work April, 2019 August, 2019
Supply and Erection of June, 2019 January, 2020
Plant & Machinery
Commissioning February, 2020 February, 2020
Trial runs March, 2020 March, 2020
Commercial Production April, 2020
 CHAPTER – 5

BROAD TECHNICAL SPECIFICATIONS FOR

PLANT AND MACHINERY

5.1 Broad Technical Specifications of Plant & Machinery for 60 KLPD

Molasses based Distillery

Molasses Bulk Storage Section

# Equipment Technical Qty. MOC
Specification
1 Molasses Storage Tank 10000 MT storage 1 No. Mild
capacities. steel,
painted

2 Raw molasses Transfer Gear type positive 2+2 Nos. C.S.

pumps. displacement pumps
3 Interconnecting piping. Carbon steel pipes. LOT MS

Molasses Storage & Handling:

# Equipment Technical Specification Qty. MOC

1 Raw Molasses transfer Type- Screw/Gear type 1+1 CI

pump Capacity- 30 MT/hr

2 Day Molasses Tank Capacity- 400 MT 1 MS

3 Molasses Transfer
Type- Screw/Gear type 1+1 CI
Pump Capacity- 30MT/hr
4 Molasses Filter Type- Basket Strainer 1+1 MS
5 Molasses Receiving
Type- Cyl/Vert. Shell with 1 MS
Tank Open Top & Conical
Bottom, Capacity- 5MT
6 Molasses Weighing Type- Load Cell 1 MS
System Capacity4 MT Per
Trip
7 Weighed Molasses Type- Cyl/Vert. Shell with 1 MS
Tank Conical Top & Sloping
Bottom, Capacity- 40 MT
8 Weighed Molasses Type- Screw/Gear type 1+1 CI
Transfer Pump with Capacity- 25 MT/hr
Motor
9 Molasses Diluter For Type- Static Mixer 1 AISI304
Yeast Vessel
 Fermentation Section:
# Equipment Technical Specification Qty. MOC

1 CO2 Scrubber Type: Sieve Trays 1 AISI 304

Dia: 800 mm
2 Culture Vessel-I with Air Type - Cyl/Vert Shell, 1 AISI 304
Sparger Jacketed with Dished Ends.
3 Culture Vessel-II with Type - Cyl/Vert Shell, 1 AISI 304
Air Sparger Jacketed with Dished Ends.
4 Culture Vessel-III with Type - Cyl/Vert Shell, 1 AISI 304
Air Sparger Jacketed with Dished Ends.
Capacity- 16 m3
5 Cell Mass Transfer Pump Type- Centrifugal with 1
with Motor Trolley Capacity- 14 m3
6 fermenter /Yeast Type- Cyl/Vert. Shell with 4 AISI 304
Activation Vessel with Conical Top & Sloping
SG,LG Bottom, Capacity- 400m3
7 Molasses Broth Mixer for Type- Static Mixer 4 SS 304
Fermenter
8 Fermenter Recirculation Type- Centrifugal 4+1 CF8
Pump with Motor Capacity- 300m3/hr
9 Fermenter Wash Cer Type- PHE 4 Plates AISI
316
10 Pre fermenter /Yeast Type- Cyl/Vert. Shell with 2 AISI 304
Activation Vessel with Conical Top & Sloping
SG,LG Bottom, Capacity- 75m3
11 Molasses Broth Mixer for Type- Static Mixer 2 AISI 304
Yeast Activation Vessel
12 Yeast Activation Vessel Type- Centrifugal 1+1 CF8
Transfer Pump with Capacity- 60 m3/hr
Motor
13 Yeast Activation Vessel Type- PHE,Frame MS 1 Plates AISI
Cer 316
14 Wash Holding Tank Type – Cyl/Vert. Shell with 1 MS Epoxy
Conical Top & Sloping
Bottom, Capacity – 400 m3
15 Wash Transfer Pump Type- Centrifugal Capacity- 1+1 CF8
3
40 m /hr
16 Air Filter Type- HEPA 1+1 MS Frame

17 Air Blower with Motor Type- Watering Capacity- 1+1 CI

240 Am3/hr
18 Nutrient Dosing Tank Capacity- 2 m3 1 AISI 304
with Agitator
 # Equipment Technical Specification Qty. MOC

19 Nutrient Dosing Pump Type- Centrifugal Capacity- 1+1 CI

1 m3/hr
20 Acid Dosing Tank Type- Cylindrical, Vertical 1 MS
Capacity- 2m3
21 Acid Dosing Pump Type- Centrifugal Capacity- 1+1 Wetted
1 m3/hr Parts Alloy
20
22 Antifoam Dosing Tank Type- Cylindrical, Vertical 1 MS
Capacity- 3 m3
23 Antifoam Dosing Pump Type: Gear Capacity- 1 1+1 CI
m3/hr
24 CIP tank Type- Cylindrical, Vertical 1 AISI304
Capacity- 50 m3
25 CIP Pump Type- Centrifugal Capacity- 1+1 Wetted
25 m3/hr Parts Alloy
20
26 Piping, Valves As Per Standards Lot
Instrumentation

Distillation Section:

# Description MOC Tech. Specs. Qty.

Analyser Column (Rh Grid Dia: 1800 mm

1 AISI 304 1
Trays) No. of Trays : 19
Degasifying Column Dia: 1000mm
2 AISI 304 1
(Seive Trays) No. of Trays : 5
Pre-Rectifier Column Dia: 1300 mm
3 AISI 304 1
(Bubble Cap Trays) No. of Trays : 56
Extractive Column Dia: 1000 mm
4 AISI 304 1
(Bubble Cap Trays) No. of Trays : 45

Rectifier Cum Exhaust Shell : AISI 304 Dia: 1400 mm

5 1
Column (Bubble Cap Trays) Trays AISI 304 No. of Trays : 72

Simmering Column (Bubble

Shell : Dow Cu Dia: 1000 mm
6 Cap) (Bottom Segment in SS 1
Trays: Dow Cu No. of Trays : 50
304)
Recovery Column Dia: 700 mm
7 AISI 304
(Bubble Cap) No. of Trays : 50 1
8 Alcohol Scrubber AISI 304 1
Reboilers
1 Analyzer Column Reboiler Shell & Tube AISI 304 1
Type
2 ED Column Reboiler Shell & Tube AISI 304 1
Type
3 Rectifier Cum Exhaust Column Shell & Tube AISI 304 1
Reboiler Type
4 Simmering Column Reboiler Shell & Tube AISI 304 1
Type
5 Pre Rectifier Column Reboiler Shell & Tube AISI 304 1
Type
Condensers & Coolers
6 DG Condenser I&II Shell & Tube AISI 304 2
Type
7 Analyser Condenser I& II Shell & Tube AISI 304 3
Type
8 ED Condenser I& II Shell & Tube AISI 304 2
Type
9 Recovery Condenser Shell & Tube AISI 304 1
Type
10 Simmering Condenser Shell & Tube AISI 304 1
Type
11 Vent Condenser for Reboiler Shell & Tube AISI 304 2
Type
12 PCV Condenser Shell & Tube AISI 304 2
Type
13 Product Alcohol Cooler Shell & Tube DOW Cu 1
Type
14 Product (RS) Cooler Shell & Tube AISI 304 1
Type
15 TA Cooler Shell & Tube AISI 304 1
Type
16 FO Cooler Shell & Tube AISI 304 4
Type
17 R/E Alcohol Cooler Shell & Tube AISI 304 1
Type
18 ED Feed Cooler Shell & Tube AISI 304 1
Type
PHE's, Pumps
19 DM Water Preheater PHE SS 316 Plates /MS 1
Frame
20 Rectifier Feed Preheater PHE SS 316 Plates /MS 1
Frame
21 PR Feed Preheater PHE SS 316 Plates /MS 1
Frame
22 Analyser Bottom Centrifugal CF8 (Wetted Parts 1+
Transfer Pump Type Only) 1
23 Rectifier Lees Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
24 PR Lees Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
25 Pre Rectifier Feed Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
26 PR Reflux Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
27 Rectifier Reflux Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
28 FO Washing Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
29 ED Bottom Transfer Centrifugal CF8 (Wetted Parts 1+
Pump Type Only) 1
30 Alcohol Transfer Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
31 Recovery Feed Pump Centrifugal CF8 (Wetted Parts 1+
Type Only) 1
32 Steam Condensate Centrifugal CI 1+
Pump Type 1
33 Vacuum Pump Water Ring CI 1+
Type 1
34 Emergency Water Standard 1
Supply Set

Others
# Description Tech. Specs. Qty.
1 FO Decanters As Per Standard 2
2 Mixing Bottle As Per Standard 1
3 Vapour Bottles As Per Standard Lot
4 Manometer Bottles As Per Standard 2
5 Seal Pot As Per Standard 1
6 Siphon For Recovery Column As Per Standard 1
7 TA Mixing Bottle As Per Standard 1
8 Pipes, Valves and Instrument As Per Standard Lot
Storage Section for RS, Ethanol Section
# Equipment Technical MOC Qty.
Specification
1 RS Receivers Capacity: 70 m3 MS 3
2 IS Receivers Capacity: 10 m3 MS 1
3 Ethanol Receiver Capacity :70m3 MS 3
4 RS Bulk Storage Tank * Capacity: 700 m3 MS 3
5 Ethanol Bulk Storage Tank * Capacity: 700 m3 MS 3
6 IS Bulk Storage Tank * Capacity: 400m3 MS 1
7 FO Storage Capacity: 10 m3 MS 1
8 Alcohol Pumps with Flameproof Centrifugal CF 8 Suitable
Motor
9 Issue Measures PD Flow meters Standard 43
10 Piping & Fittings Standard Std 1 Lot

*Bulk storage tank with vent condenser, flame arrester.

Integrated Evaporator:
# Description Qty. Technical data M.O.C.
1 Multiple effect Suitable Shell & Tube type, SS304
evaporator Falling Film
2 Vapor Separator Suitable Cylindrical SS304
3 Surface condenser 1 Sheet & Tube SS304
type
4 Circulation pump Suitable Double Mech Contact Part SS
Shaft 304
5 Process 1+1 Contact Part SS
Condensate pump 304
6 Concentrated 1+1 Contact Part SS
Spent wash 304
transfer pump
7 Condensate Pump 1+1 Contact Part SS
304
8 Vacuum pump 1+1 Contact Part SS
304
9 Piping & Valves Lot Suitable
10 Electrical & Lot Std. Specification
Instrumentation

Detailed Project Report on 100 KLPD Multifeed Distillery Plant by OOL at Aurangabad, UP 56
Independent Evaporator:
# Description Qty. Technical data M.O.C.
1 Feed and Product Tank 2 Type:- Rectangular SS304

2 Feed Pump& Spent 1+ 1 Type - Centrifugal type SS 316

wash pump each Suitable
3 Evaporators Suitable
Type : Forced SS304
circulation
4 Vapor Liquid Suitable Type : Gas liquid SS304
Separators separator type
5 Evaporation Pump Suitable Recirculation pump SS 316
6 Surface Condenser 1 Type : shell & tube; SS 304
9 Vacuum Pump 1+ 1 Type - Water ring type SS 316
10 Condensate Tank 1 Capacity – Suitable SS 304
11 Condensate Pump 1+ 1 Type - Centrifugal type SS 316
12 Piping and Valve, Electrical and Instruments

Utilities: Cooling Tower:

# Equipment Description Specifications Qty.
(Nos.)
1 Cooling tower for Fermentation 1800 M Kcal/hr 1
plant
2 Cooling tower for Distillation 4000M Kcal/hr 1
3 Cooling tower for Ethanol 900M Kcal/hr 1
4 Cooling tower for evaporation 3000M Kcal/hr 1
5 CW Recirculation pump for Suitable. 1+1
Fermentation Centrifugal,
6 CW Recirculation pump for Suitable. 1+1
Distillation Centrifugal,
7 CW Recirculation pump for Suitable. 1+1
evaporation Centrifugal,
8 CW Recirculation pump for Suitable. 1+1
Ethanol Centrifugal,
9 PRDS Suitable. 2
10 Instrument Air compressor & Suitable capacity 1+1
dryer
11 Piping, Valves standard Lot
12 Instrumentation standard Lot

Detailed Project Report on 100 KLPD Multifeed Distillery Plant by OOL at Aurangabad, 57
UP
Slop Fired Incinerator Boiler & Turbine

# Particulars Specification

1 Slop fired incinerator boiler 22 TPH, 45 Kg/Cm2 (g) Pressure

with bagasse as supporting fuel
2 Turbine Suitable capacity of 2.00 MW
Back Pressure of 4.5 Kg/Cm2(g)

Fire Fighting & Protection system common for molasses and grain
based plant-Fire protection system to be offered based on site plan. The
system is designed as per International rules (NFPA) & equivalent
standards.

Water Treatment Area Filtration Plant Common for Molasses and

Grain based Distillery Plant

1. Multi grade Sand Filter 1 No.

Pressure vessel internally painted with black 1 No.MS with epoxy
bituminous and externally with red coating
oxide primer :MOC
Piping works with valves 1 No.
Graded filtering sand specifically selected 1 No.
and
graded
2. Activated Carbon Filter 1 No.
Pressure vessel internally painted with black 1 No. MS with
bituminous and externally with red oxide epoxy coating
Piping works with valves 1 No.
3. Softener 1 No.
Pressure with rubber lining from inside and 1 No.
externally with red oxide primer
Piping works with valves 1 set
Cation Exchange resign 1 set
Hardness test kit 1 set
Brine saturated tank of MS construction 1 No.
Brine distribution system 1 Lot
4. D.M. PLANT ( 1 No.)
1 Strong acid cation 1 No.
2 Degasser tower & pump 1 No.
3 Strong acid anion 1 No.
4 Mixed bed exchanger 1No
5.2 Broad Technical Specifications of Plant & Machinery for 40 KLPD
Grain based Distillery

Grain Handling And Milling

Sr. Item Technical QTY MOC
No. Specification

1 Grain loading elevator Bucket 1 Suitable

2 Grain Storage Silo Cyl and 2 Suitable

vertical with
conical top
5000 MT
3 Grain Feeding elevator Bucket 1 Suitable

4 Milling with required Suitable Hammer Suitable and

auxiliaries mill 1+1 lot

Liquefaction
Sr. Item Technical QTY MOC
No. Specification
1 Liquefaction Tank with Type-Cylindrical/ 1 SS 304
sparger and Agitator vertical

2 Caustic Dosing tank Type :Cylindrical/ 1 Mild Steel

vertical
3 Recycle Stream Type : Cylindrical 1 SS 304
collection tank
4 Enzyme Dosing Tank Type :Vertical 1 SS 304

5 Premasher Mixer 1 AISI 304

6 Caustic dosing pump Type :Centrifugal 1+1 CI

7 Liquefaction tank Type :Centrifugal 1+1 Wetted

pump Parts
CF8
8 Recycle stream collection Type :Centrifugal 1+1 Wetted
tank transfer pump Parts
CF8

9 Slurry cooler Type : PHE 1+1 Plate -

AISI 316
10 Liquefying Enzyme Type :metering
dosing pump Standard
Fermentation Section:
Sr.
Equipment Technical Specification Qty MOC
No.

Type: Sieve Trays

1 CO2 Scrubber 1 AISI 304
Dia: 600 mm

Type - Cyl/Vert Shell,

Culture Vessel-I with
2 Jacketed with Dished 1 AISI 304
Air Sparger
Ends.
Type - Cyl/Vert Shell,
Culture Vessel-II with
3 Jacketed with Dished 1 AISI 304
Air Sparger
Ends.
Type - Cyl/Vert Shell,
Culture Vessel-III with Jacketed with Dished
4 1 AISI 304
Air Sparger Ends. Capacity- 10
m3
Cell Mass Transfer Type- Centrifugal with
5 1
Pump with Motor Trolley Capacity- 10 m3
Type- Cyl/Vert. Shell with
Fermenter with Conical Top & Sloping
6 4 AISI 304
Agitator, SG, LG Bottom, Capacity- 200
m3
CF8
Fermenter
Type- Centrifugal (Wetted
7 Recirculation Pump 4+1
Capacity- 150m3/hr Parts
with Motor
Only)
Plates
AISI 316
8 Fermenter Wash Cooler Type- PHE 4
Frame
MS
Pre fermenter /Yeast Type- Cyl/Vert. Shell with
9 Activation Vessel with Conical Top & Sloping 2 AISI 304
SG,LG Bottom, Capacity- -50m3
CF8
Yeast Activation Vessel
Type- Centrifugal (Wetted
10 Transfer Pump with 1+1
Capacity- 40 m3/hr Parts
Motor
Only)
Plates
Yeast Activation Vessel AISI 316
11 Type- PHE 1
Cooler Frame
MS
Sr. Technical
Equipment Qty MOC
No. Specification
Type- Cyl/Vert. Shell
with Conical Top &
12 Beer well 1 MS Epoxy
Sloping Bottom,
Capacity- 200 m3

Wash Transfer Type- Centrifugal CF8 (Wetted

13 1+1
Pump Capacity- 20 m3/hr Parts Only)

14 Air Filter Type- HEPA 1+1 MS Frame

Air Blower with Type- Watering
15 1+1 CI
Motor Capacity- 100 Am3/hr
Nutrient Dosing
16 Tank with Capacity- 1 m3 1 AISI 304
Agitator
Nutrient Dosing Type- Centrifugal
17 1+1 CI
Pump Capacity- 1 m3/hr

Type- Cylindrical,
Acid Dosing
18 Vertical Capacity- 1 1 MS
Tank
m3

Acid Dosing Type- Centrifugal Wetted Parts

19 1+1
Pump Capacity- 1 m3/hr Alloy 20

Type- Cylindrical,
Antifoam Dosing
20 Vertical Capacity- 1 1 MS
Tank
m3

Antifoam Dosing Type: Gear Capacity-

21 1+1 CI
Pump 1 m3/hr
Type- Cylindrical,
22 CIP tank Vertical Capacity- 30 1 AISI304
m3
Type- Centrifugal Wetted Parts
23 CIP Pump 1+1
Capacity- 10 m3/hr Alloy 20
Piping, Valves
24 As Per Standards Lot
Instrumentation
Distillation Section
Sr.
Description MOC Tech. Specs. Qty
No.

Analyser Column Dia: 1100 mm

1 AISI 304 1
(Rh Grid Trays No. of Trays : 19

Degasifying Column Dia: 800mm

2 AISI 304 1
(Sieve Trays) No. of Trays :
5
Pre-Rectifier
Dia: 900 mm
3 Column (Bubble AISI 304 1
No. of Trays : 56
Cap Trays)

Extractive Column Dia: 800 mm

4 AISI 304 1
(Bubble Cap Trays) No. of Trays : 45

Rectifier Cum Shell : AISI

Dia: 1100 mm
5 Exhaust Column 304 Trays 1
No. of Trays : 72
(Bubble Cap Trays) AISI 304

Shell : Dow
Simmering Column Dia: 900 mm
6 Cu Trays: 1
(Bubble Cap) No. of Trays : 50
Dow Cu

Recovery Column Dia: 400 mm

7 AISI 304
(Bubble Cap) No. of Trays : 50
1
8 Alcohol Scrubber AISI 304
1
Reboilers

1 Analyzer Column Reboiler AISI 304 1

Shell & Tube Type
2 ED Column Reboiler Shell & Tube Type AISI 304 1
Rectifier Cum Exhaust
3 AISI 304 1
Column Reboiler Shell & Tube Type
Simmering Column
4 AISI 304 1
Reboiler Shell & Tube Type
Pre Rectifier Column
5 AISI 304 1
Reboiler Shell & Tube Type
Condensers & Coolers
6 DG Condenser Shell & Tube Type AISI 304 2

7 Analyser Condenser Shell & Tube Type AISI 304 2

8 ED Condenser Shell & Tube Type AISI 304 2

9 Recovery Condenser Shell & Tube Type AISI 304 2

10 Simmering Condenser I Shell & Tube Type AISI 304 1

Vent Condenser for
11 AISI 304 1
Analyzer Column Reboiler Shell & Tube Type
Vent Condenser
12 for Simmering AISI 304 1
Column Reboiler Shell & Tube Type
13 Rectifier PCV Condenser Shell & Tube Type AISI 304 1

14 PR PCV Condenser Shell & Tube Type AISI 304 1

15 Product Alcohol Cooler Shell & Tube Type DOW Cu 1

16 TA Cooler Shell & Tube Type AISI 304 1

17 FO Cooler AISI 304 2

Shell & Tube Type

18 Pre Rectifier FO Cooler AISI 304 1

Shell & Tube Type

19 R/E Alcohol Cooler AISI 304 1

Shell & Tube Type

20 ED Feed Cooler AISI 304 1

Shell & Tube Type
PHE's, Pumps
SS 316 Plates
1 DM Water Preheater PHE 1
/MS Frame

2 Rectifier Feed Preheater PHE SS 316 Plates 1

/MS Frame

3 PR Feed Preheater PHE SS 316 Plates 1

/MS Frame
Analyser Bottom Centrifugal CF8 (Wetted
4 1+1
Transfer Pump Type Parts Only)
Centrifugal CF8 (Wetted
5 Rectifier Lees Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
6 PR Lees Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
7 Pre Rectifier Feed Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
8 PR Refux Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
9 Rectifier Reflux Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
10 FO Washing Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
11 ED Bottom Transfer Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
12 Alcohol Transfer Pump 1+1
Type Parts Only)
Centrifugal CF8 (Wetted
13 Recovery Feed Pump 1+1
Type Parts Only)
Centrifugal
14 Steam Condensate Pump 1+1
Type CI
Water Ring
15 Vacuum Pump 1+1
Type CI
Emergency Water Supply
16 Standard 1
Set
Others
Sr.
Description Tech. Specs. Qty
No.
1 FO Decanters As Per Standard 2
Mixing Bottle (For ED/Purifier
2 Column) As Per Standard 1
3 Vapour Bottles As Per Standard Lot
4 Manometer Bottles As Per Standard 2
5 Seal Pot As Per Standard 1
6 Siphon For Recovery Column As Per Standard 1
7 TA Mixing Bottle As Per Standard 1
Pipes & Fittings, Valves and
8 Instrument As Per Standard Lot

Storage
Sr. Technical
Equipment MOC Qty
No. Specification
1 TA Receivers Capacity: 5 m3 MS 1

2 ENA Receivers Capacity: 40 m3 MS 3

ENA Storage Tank with
Capacity: 1200
3 Vent Condenser & Flame MS Suitable
m3
Arrestors
TA Bulk Storage Tank
4 with Vent Condenser Capacity: 200m3 MS Suitable
& Flame Arrestors
5 FO Storage Capacity: 30 m3 MS 1
Wetted
6 Alcohol Pumps with Centrifugal Parts CF Suitable
Flameproof Motor 8
7 Standard 2
Flow meters
8 Piping & Fittings Standard Standard 1 Lot
Decantation Section
Sr. Item Technical QTY MOC
No. Specification
1 Decanter Centrifuge 1+1 . AISI 304 Internals
Centrifuge
2 Thin Slop Holding Vertical Type 1 AISI 304 1
Tank After
Decanter
3 Thin Slops Centrifugal 1+1 Wetted parts CF8
Transfer Pump Type

4 Ribbon Mixer Ribbon type 1 AISI 304

Independent Evaporator
Sr.
Description Qty Technical data M.O.C.
No.
1 Feed Tank 1 Type:- Rectangular SS304
Capacity :- Suitable
2 Feed Pump 1+1 Type - Centrifugal type SS 316
Cap Suitable

3 Evaporators Suitable Forced circulation type SS304

4 Vapor Liquid Suitable. Type : Gas liquid SS304

Separators separator type
5 Evaporation Suitable Recirculation pump SS 316
Pump
6 Surface 1 nos. Type : shell & tube; SS 304
Condenser
7 Product Tank 1 no. Capacity Suitable Type : SS 304
vertical / cylindrical
8 Spent Wash 1 + 1. Type - Centrifugal SS 316
Pump type Material – Casing
and
impeller
9 Vacuum Pump 1+1 Type - Water ring type SS 316

10 Condensate Tank 1 Capacity – Suitable SS 304

Type : vertical/ cylindrical
11 Condensate 1 + 1 nos. Type - Centrifugal type SS 316
Pump
12 Piping and Valve, Electrical and Instruments
Utilities: Cooling Tower
Sr.
Equipment Description Specifications Qty. (Nos)
No.
Cooling tower for
1 Suitable 1
Liquefaction plant
Cooling tower for
2 900 M cal/hr 1
Fermentation plant
Cooling tower for
3 2500 M cal/hr 1
Distillation
Cooling tower for
4 2000 Mcal/hr 1
evaporation
CW Recirculation pump for
5 Suitable. Centrifugal, 1+1
liquidation
CW Recirculation pump for
6 Suitable. Centrifugal, 1+1
Fermentation
CW Recirculation pump for
7 Suitable. Centrifugal, 1+1
Distillation
CW Recirculation pump for
8 Suitable. Centrifugal, 1+1
evaporation
9 PRDS Suitable. 2
Instrument Air compressor
10 Suitable capacity 1+1
with Air dryer
11 Piping, Valves standard Lot
12 Instrumentation standard Lot

Bagasse Fired Boiler & Turbine

Sr. Particulars Specification
No
1 Bagasse fired 10 TPH, 45 Kg/Cm2 (g) Pressure
incinerator boiler
2 Turbine Suitable capacity of 1 MW Back pressure
with exhaust pressure of 4.5 Kg/Cm2(g)
 CHAPTER – 6

ENERGY AND WATER CONSERVATION

6.1 Energy and Water Conservation

The consumption of energy is a vital factor in any industry. Energy

saving may be achieved in the following manner:

• The process involves multi pressure system which is heat saving

& efficient system
• Insulation of all columns, pipelines, vessels are essential.
• Preheating of wash
• The wash feed temperature to analyzer column can be raised to
80-850C by efficient use of beer heater and heat exchangers;
besides the heating of boiler feed water with excess spent wash
can also be raised to 80-85 0C. Substantial reduction in steam
consumption may be achieved with maintaining a proper reflux
ratio.
• Condensers.
• High alcohol % in wash can result in substantial reduction in
steam consumption.
• Reducing the quantity of spent wash generation through
multistage evaporation by using steam as heating media.
Therefore, less steam is required for integrated evaporation.
• It is possible to recycle of low strength waste generated i.e.
process condensate, spent lees and other streams in distillery
after treating through condensate polishing unit. It will help to
reduce the consumption of fresh water for process and non-
process applications.
• During spent wash treatment the concentrated spent wash is
burnt with support fuel bagasse or coal. Due to concentrated
spent wash, fresh fuel (bagasse) requirement is reduced.

6.2 Fire Fighting and Safety:

In view of the inflammable nature of the end product the plant

incorporates suitable firefighting equipment and flameproof lighting
and power control arrangements. Non inflammable and flameproof
motors are used wherever absolutely necessary. Water hydrants will
be provided at all strategic points. A suitable Fire ring system as per
the guidelines of TAC will be incorporated. Non-flameproof and
flameproof area will be separated by minimum distance of 15
meters.
Types of Fire Extinguisher for Use in the Plant

• Dry Powder Type (stored pressure) fire extinguisher suitable for –

Fire wood, cloth, Paper oil, petrol, kerosene flammable material,
gasses, electrically started fires
• Carbon dioxide fire extinguisher suitable for – All flammable
liquids, gasses, Live and Delicate machinery fix, Electrical and
sophisticated electronics equipment fires
• Dry chemical Power fire extinguisher suitable for – Fire of oils,
solvents, gasses, paints varnish, electrical wiring, Live
machinery fires, All flammable liquid and gas fires
• Mechanical foam fire extinguisher (AFFF) suitable for fire of
petrol, oil paints, spirits chemicals flammable liquids.
• Water CO2 fire extinguisher- Suitable for – fighting of fire of
wood, Paper cotton, jute etc.
• Fire Protective System – Fixed supply of Carbon dioxide from
the Tank, normally connected to fixed piping system with
nozzles arranged to discharge CO2 directly on the burning
material, equipped with Fire Alarm, Fire hydrant fm 200/70
and extinguishing system H.V.W / M.V.W Spray system. System
consists of Alarm Bell, Control panel, remote station, electric
control needed for operating system, Pressure switch Heat
detector, Heat collector, and conveyor rail, Drain Board with
dip tank and discharge nozzles.
• Automatic fire Sprinkler System (Water Hydrant) – Electro-
magnetic dehydration system uses an electric fire detection
system installed in the area as open sprinklers /spray nozzles
upon sensing a hazard, the electromagnetic valve opens deluging
the entire protected area with water. This Valve is used in high
hazard area, where an extremely quick response is required.

The safety equipment such as safety goggles, aprons, rubber hand

gloves, hoods, helmets, face mask, asbestos gloves, respirators,
gum boots and ear plugs, will be kept at strategic points and all
operating personnel will wear the same when in operational areas.

The above safety equipments are requested to be used by the plant

operating personnel for handling chemicals, steam and vapors
/solvents in the distillery. It is mandatory that all the safety
equipments are maintained properly and adequate quantities are
maintained.

The fire hydrant &fire fighting equipments are to be procured from

the reputed manufactures and the work of installation will be
entrusted to a recognized qualified agency.
 CHAPTER – 7

FINANCIAL VIABILITY

7.1 Basis & Assumptions

7.1.1 Each item of capital cost is based on the estimated erected

costs for various equipment contractors. Annexures-1 to 6
respectively give land and site development costs, civil works,
erected costs of plant and equipment, erected costs of
miscellaneous fixed assets and preliminary and pre-operative
expenses. While calculating the cost of site development and
civil works, the prevailing rates for labor, material, etc.
have been assumed.

7.1.2 The contingency provision has been made on all firm and
non-firm items of the project cost and has been considered
at 1% for each component of the project, including
preliminary and pre-operative expenses (Refer annexure 6).

7.1.3 The installed capacity and capacity utilization level for

distillery plant and annual production have been shown in
the following table.

Particulars 1st 2nd 3rd

year year Year
Installed Capacity, KLPD 100 100 100
 No. of days 330 330 330
 Annul Installed Capacity, KL 33000 33000 33000
Capacity utilization, % 85% 90% 100%
Annual Production of Ethanol, KL 16830 17820 19800
Annual Production of DWGS, MT 11220 11880 13200

7.1.4 The stock levels for various items of working capital have
been worked out. (Refer Annexure-7). The margin money has
been considered at 25% of total requirement of the first year
and c/c facility at 75% of total requirement. The interest rate
on c/c facility is taken at 10%, prevailing banking rate for
that level of c/c limit.

7.1.5 Project income is based on the sale of quantities of

ethanol, ENA and DWGS. The selling price of ethanol, ENA
and DWGS has been considered at Rs.43.46/Ltr, 50.00/Ltr
and Rs.16/Kg, respectively based on the prevailing market
prices. Refer Annexure – 8 for estimated annual production
and sales value.
7.1.6 The cost of own and procured molasses is considered at 1000
per MT and Rs.1100 per MT, respectively, without any
escalation. The cost of bagasse has been considered at
Rs.1500 per MT, without any escalation. The landed cost of
damaged grains has been considered at Rs.12000/MT. Refer
Annexure 9 for particulars of indigenous raw material
explained above.

7.1.7 The cost of various consumables and chemicals is estimated

at Rs.500/KL. (Refer Annexure-10 for details).

7.1.8 The requirement of direct manpower has been estimated

based on the equipment / facilities to be operated in each
section of the project. Total manpower requirement has
been estimated at102 Nos. Every year 5% increment and
10% benefits have been provided for (Refer Annexure-12).

7.1.9 Repairs and maintenance costs have been estimated at 1%

on civil works & miscellaneous fixed assets and 1.5% on
plant equipment (Refer Annexure-13), with 2% increase
every year.

7.1.10 Other manufacturing expenses include rent, rates and taxes,

electricity charges, insurance charges for fixed assets and
stocks, miscellaneous expenses and contingencies (Refer
Annexure-14).

7.1.11 Administrative overheads include administrative staff salary

and expenses like printing and stationery, postage and
telephone, traveling and conveyance, legal and other
expenses (Annexure 15). The selling and distribution
overheads have been estimated as detailed in respective
Annexure - 16.

7.1.12 The repayments of interests and term loans of the project

have been considered based on the means of finance and the
terms for debt. The term loan for distillery plant has been
considered at 10.15% rate, payable within 7 years, with 1.5
years moratorium for repayment. Door to Door tenure is
considered 8.5 years. The company has already received
sanction from Government of India for 50% subvention
in term loan interest for a term loan of Rs.68.12 Cr.
However, the viability has been calculated based on
interest rate of 10.15%. After receipt of 50% subvention
in interest for term loan of Rs.68.12 Cr, the financial
viability will further improve.
 7.1.13 Depreciation has been calculated by following rates:

Item of capital cost WDV SLM

Site development and civil 10.00 3.17
structure
Plant & Machinery 15.00 6.33
Miscellaneous assets 15.00 6.33

7.1.14 Annexure-19 gives income tax calculation.

7.1.15 based on above assumptions, the detailed project financial

analysis has been worked out.

7.2 Cost Summary

Based on the capital cost break up worked out in Chapter 4, the

project cost summary for the project is given in the following table
(Also refer Schedule A):

7.2.1 Project Cost:

Total Project Cost : (Rs. in

Lakh)
Land : 0.00
Site Development : 159.30
Civil works & Buildings : 1758.20
Indigenous Plant and Machinery : 10325.00
Miscellaneous Fixed Assets : 1062.00
Prelim & Preoperative Expenses : 743.80
Contingencies : 140.42
Working Capital Margin : 279.62
Total : 14468.34
 7.2.2 Means of Finance:

Financing Pattern % : (Rs. in Lakh)

1. OOL’s Contribution 20.00 : 2893.67
2. FI / Bank Loan 80.00 : 11574.67
Total 100.00 : 14468.34

7.3 Financial Viability Indicators

7.3.1 Schedules establish results of the project financial analysis, in

terms of total project cost and means of finance, project
profitability, debt service coverage ratio, cash flow statement,
balance sheet forecast, analytical and comparative ratio,
breakeven analysis, sensitivity analysis, internal rate of
return, payback period, etc. supported by Annexure.

7.3.2 The above ratios establish good financial viability of the

project for this funding pattern and project income from sale
of ethanol, ENA and DWGS.

7.3.3 Following table shows the estimated turn over, profits, and the
financial viability indicators like DSCR & IRR.

Parameter First Year Fifth Year

Estimated Annual Income Rs. Lakh 9764.77 11487.96
Profit Before Tax Rs. Lakh 2306.86 3697.33
Debt Service Coverage Ratio Average 1.90
Maximum 4.35
(DSCR)
Minimum 1.50
Payback Period, Years 4 to 5

Internal Rate of Return on total

22.99
Investment, %

7.3.4 Break Even and Sensitivity Analysis

The Break even and various sensitivity analysis have been

carried out and presented in Schedule – G. The results are
satisfactory.
7.3.5 Payback Period

Payback period works out between 4 to 5 years and

calculations are presented in Schedule – H.

7.3.6 IRR Calculation

Post Tax IRR works out to 22.99% and the calculations are
presented in Schedule – I.
 CHAPTER – 8

PERMISSIONS, NOCs & APPROVALS

8.1 NoC’s / Approvals / Permissions

List of NoC’s / Approvals / Permissions required & their status as of

November, 2018 is indicated in the following table:

# Details of of NoC / Status

Approval Completed Under Yet to
Process start
1 Registration of OOL 
2 GST& income tax 
registrations
3 PF registrations 
4 IEM license for distillery 
and ethanol
5 Consent to establish 
6 Environment Clearance 
7 Consent to operate 
8 NoC from local gram 
panchayat
9 Water drawl permission 
10 Factory inspector approval 
11 Boiler Inspector approval 
12 Electrical inspector 
approval
13 Letter of Intent from State 
Excise
14 PESO Approvals 

8.2 Management and Administration

OOL has already deputed a competent Project Team for developing

and implementing this project at Aurangabad. The OOL Board will
take review of progress of work on a monthly basis, to ensure speedy
and successful implementation of this project.
8.3 Technical & Financial Tie Ups

OOL has the experience and know how for adopting the latest
technologies. Consultants and experts have been appointed for
implementation of this project.

OOL has already brought the required equity, as well as provide the
negotiated securities to the bankers and financial institutions. The
term loan and working capital loan will be taken from nationalized
banks / FIs.

OOL will not face any difficulty for arranging technical and financial
tie ups required for the captioned project.

8.4 Project Management

The project management for the ethanol project is under capable

leadership of promoters/directors. The appointed experts,
consultants and OOL staff have been working together for
implementation of this project.

Project monitoring / management is almost on daily basis and as

per the final bar chart / implementation schedule, developed after
ordering of main plant and equipment.
 CHAPTER – 9

SOCIO-ECONOMIC AND
ENVIRONMENTAL BENEFITS

9.1 The proposed project will be a landmark achievement in Bareilly

District of UP State. It will truly become a role model of zero
pollution industry by utilizing the waste effluent which will be burnt
with support fuel bagasse in the most efficient manner for eco-
friendly products like fuel ethanol and ENA. The sound techno-
economic and commercial viability of this project, coupled with
highest efficiency in all aspects of product manufacture, will pave
the way for integration of sugar and alcohol industry in the State of
Uttar Pradesh.

Establishment of the latest and most efficient technologies adopted

for fuel ethanol / ENA manufacture, will also help the Indian sugar
industry and equipment manufacturers to grow leaps and bounds,
at the national and the international levels.

9.2 The socio-economic benefits arising out of this project for the local
populace will include creation of direct and indirect jobs and
consequent rise in the income levels, associated commercial and
social infrastructure development in the mofussil areas, better
environment and higher returns for the cane crop due to higher
yield and cane price.

9.3 At the national and the State levels, the benefits include reduced
emissions, increased tax revenues and reduction in the
transportation costs.

9.4 At the project and promoter levels, the captioned project offers
excellent opportunities for manufacture of fuel ethanol and improved
returns from trade of emission reductions from the upcoming
international emissions trade market, under the Kyoto Protocol.

9.5 The project will have excellent multiplier effect and will become
truly a win-win situation for all the stakeholders. Thus, the proposed
project has substantial socio-economic and environmental benefits
at the local, the State, the Regional and the National levels.
 CHAPTER – 10

SWOT ANALYSIS & CONCLUSION

10.1 SWOT Analysis

10.1.1Strengths:

 Background and experienced promoters

 Existing sugar factory of 3500 TCD
 Excellent irrigation in the command area and water table
ensuring cane cultivation and availability on a long term
basis
 Ample availability of Grains and molasses in the District
 Favorable policy regime for ethanol / ENA, at the Central
Govt. and in Uttar Pradesh, with defined policies regarding
sale of ethanol and ENA
 Innovation, commitment and vision of the promoters, with
backward and forward integration planned right from
beginning
 Professional and business like approach of the promoters,
with meticulous planning for speedy and successful
implementation and operation
 Excellent response to project, at the local farmer level,
State Government., national and international level
 Sound financial viability and technical feasibility of the
ethanol project at the estimated project capital cost and
prevailing selling of fuel ethanol, ENA and DWGS, as well
as landed prices of various raw materials and inputs
 Deployment of latest technologies and equipment for the
Distillery plant
 A very high order of socio-economic and environmental
value to the local populace, UP State and the country,
which generate fuel ethanol without any impact on the
socio-ecological balance.
10.1.2 Weaknesses :

 Complexities and higher investment levels of the project.

Employment of experienced and professional teams and
consultants, as well as project and equity partners,
directors on board will reduce this weakness.
  Delay in project implementation may affect the overall
momentum and support.
10.1.3 Opportunities :

 Increase in ethanol blending further will boost the

requirement of fuel ethanol
 Setting up downstream alcohol based downstream
chemical units
 Setting up of CO2 purification and bottling plant
10.1.4 Threats:

 Adverse changes in Govt. policies, particularly related to

prices of finished goods and raw material i.e. molasses and
grains
10.2 Risks & Mitigants

Risk Particular Mitigates

Cane development has been in
full progress, with experienced
senior professionals and staff
Ensured sugar
appointed for the purpose.
Performance cane,
Availability of own C-molasses
risk molasses and
and B-heavy Molasses as well as
Grain
from nearby sugar factories and
availability
ample availability of grains in
the district
Firm marketing tie up in offing.
Marketing
Fuel Ethanol Alternative marketing channels
risk
explored.
The company has already
approached for the Government
Agencies for permissions and
Regulatory Conversion /
approvals. They have shown
risk clearances
willingness to give permissions /
approvals in time.

Satisfactory DSCR. Equity

Financial participation being arranged.
Financial
viability of the Sensitivity analysis indicates
risk
project quite satisfactory ‘Margin
of
Safety’
10.3 Key Management Features

Appointment of Project Team, required experts and consultants, as

well as top level staff - right from the beginning – already appointed.

Securing all required balance permissions / NoC’s / approvals

quickly and achieving the financial closure at the earliest.

Selection of right technology and equipment suppliers – OOL is in

process to select good technology and machinery suppliers.

Effective project management for timely execution – OOL has already

deployed team of experts to monitor the project progress.

10.4 Conclusions & Recommendations

The captioned pr ject is technically feasible and commercially viable.

The project is recommended to financial institutions / banks for
financing term and working capital loans.

For, Mantras Green Resources Ltd.

Authorized Signatory