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ON
MUNICIPAL SOLID WASTE TO ENERGY (WTE)
PROCESSING PLANT BY
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
~PREPARED FOR~
M/S. Kolhapur Green Energy Pvt. Ltd.
602, TRADE CENTER, BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI – 411 051
MAHARASHTRA, INDIA
~PREPARED BY~
MITCON CONSULTANCY & ENGINEERING SERVICES LTD.
KUBERA CHAMBERS, SHIVAJINAGAR, PUNE – 411 005
MAHARASHTRA STATE, INDIA
March 2014
TABLE OF CONTENTS
DISCLAIMER……………………………………………………………………………………………………………4
EXECUTIVE SUMMARY.......................................................................................................................5
ROMOTER’S PROFILE & PROJECT BACKGROUND..................................................................................13
1.1 COMPANY PROFILE OF KGEPL…………………………………………………………..….…..13
1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL………………………………………..14
1.3 KEY MANAGEMENT TEAM OF KGEPL……………………………………….……………..17
1.4 COMPANY PROFILE OF RSSPL…………………………………………………………………..18
1.5 COMPANY PROFILE OF SHIIPL…………………………………………………………………..18
1.6 PROJECT BACKGROUND………………………………………………………………….………..19
1.7 EPC CONTRACTOR…………………………………………………………………………………….21
1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL………………...………………………...21
1.9 SCOPE OF TEV STUDY……………………………………………………………………………....21
1.10 METHODOLOGY………………………………………………………..…..……………………….…22
TECHNICAL FEASIBILITY....................................................................................................................23
2.1 KOLHAPUR MUNICIPAL CORPORATION……………………………………………......23
2.2 LAND……………………………………………………………………..………………………………..24
2.3 QUANTIFICATION OF SOLID WASTE GENERATION……………………………..…27
2.4 WASTE PROCESSING TECHNOLOGY EVALUATION PARAMETERS…….…….29
2.5 PROPOSED PROCESS AND TECHNOLOGY…………………………………………….….35
2.6 PROCESS LOGIC……………………………………………………………………………………..…36
2.7 PROJECT AT A GLANCE………………………………………………………………………..…...38
2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY……..39
2.9 MACHINERY…………………………………………………………………………………………..…41
2.10 MAN POWER REQUIREMENTS…………………………………………………………………42
2.11 STATUTORY & NON-STATUTORY APPROVALS…………………………………….…44
2.12 CONCLUSION………………………………………………………………………………………...….45
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MARKETING VIABILITY....................................................................................................................46
3.1 SOLID WASTE MANAGEMENT…………………………………………………………………46
3.2 REGION WISE WTE POTENTIAL IN INDIA………………………………………….……49
3.3 MUNICIPAL SOLID WASTE GENERATION …………………………………………….…55
3.4 IMPORTANCE OF SOLID WASTE MANAGEMENT: CONCEPT OF WASTE TO
ENERGY……………………………………………………………………………………………….…59
3.5 REDUCTION IN GREEN HOUSE GAS (GHG) EMISSIONS……………………………59
3.6 FLYASH BRICK MARKET VIABILITY………………………………………………………65
Appendix - GOVERNMENT OF ANDRA PRADESH……………………………….………68
VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT………………………73
3.7 POLICIES AND GUIDELINES OF MNES……………………………………………….….…78
3.8 POWER PURCHASE AGREEMENT……………………………………………………………78
3.9 CONCLUSION……………………………………………………………………………………………78
FINANCIAL VIABILITY......................................................................................................................82
4.1 EVALUATION PARAMETERS FOR FINANCIAL VIABILITY………………….……82
4.2 OVERVIEW OF OVERALL FINANCIALS………………………………………………..…..82
4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL) …………………………………..84
4.4 ASSUMPTIONS OF THE PROJECT……………………………………………………………85
4.5 CALCULATIONS OF DSCR IS AS UNDER……………………………………………………89
4.6 PROJECT IRR………………………………………………………………………………………..…90
4.7 The financials based on above assumptions has been attached as an
annexure named “Financials”. …………………………………………………………………...………90
4.8 EVALUATION CRITERIA……………………………………………………………………………90
4.9 CONCLUSION……………………………………………………………………………………………91
SWOT ANALYSIS..................... ......................................................................................................91
5.1 STRENGTH……………………………………………………………………………………………..…92
5.2 WEAKNESSES……………………………………………………………………………………………92
5.3 OPPORTUNITIES………………………………………………………………………………………92
5.4 THREATS……………………………………………………………………………………………….…92
BANKING ASPECTS OF THE PROPOSAL...............................................................................................93
CONCLUSIONS & RECOMMENDATIONS...............................................................................................95
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DISCLAIMER
DELIVERY CHALLAN: No: BFS/DC/TEV/86/2013-14/C/1
Date: 25/03/2014
MITCON Consultancy & Engineering Services Ltd., Pune has prepared this TEV Study
on25.03.2014 for the Setting up Waste-to-Energy (WTE-180 TPD) Processing Plant
for power generation (1.8 MWh)at Kolhapur of Kolhapur Green Energy Private
Limited, 602, Trade Centre, Bandra Kurla Complex, Bandra East, Mumbai - 400051,
Maharashtra State on a best judgment basis.
While all reasonable care has been taken in its preparation, details contained in this
report have been compiled in good faith based on information provided by M/s
Kolhapur Green Energy Private Limited
It is further informed that the projections are the management’s best estimates and
no representation, warranty or undertaking, express or implied is made and no
responsibility is accepted by MITCON Consultancy & Engg. Services Ltd. and / or its
affiliates and / or its Directors, employees / officers in this report or for any direct or
consequential loss arising from any use of the information, statements or forecasts in
the Report.
This report is for confidential use of M/s Kolhapur Green Energy Private Limited., and
their bankers may use it only to raise loans from Banks / Institutions for meeting the
cost of the envisaged project and not for any other use.
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EXECUTIVE SUMMARY
PROJECT HIGHLIGHTS:
A) General
Date of
08.11.2013
incorporation
Sunilhitech India Infra Pvt. Ltd (SHIIPL)
(Subsidiary of Sunilhitech Engineers Ltd.
Parent company (SHEL))
Rochem Seperations Systems (India)Pvt. Ltd
(RSSIPL)
SHIIPL: U45400MH2012PTC232077
Regn. No. / CIN No.
RSSIPL: U24100MH1991PTC064068
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Registered Office SHIIPL:
602, Trade Centre, Bandra Kurla Complex,
Bandra East, Mumbai - 400051, Maharashtra,
INDIA.
RSSIPL:
101, HDIL Tower, Anant Kanekar Marg,
Bandra (E), Mumbai.
Proposed Project Kasaba Bavda village, Tehsil Kolhapur,
Site Address District, Kolhapur, Maharashtra
Board of Directors Kolhapur Green Energy Private Limited
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End Product is Electricity.
B) Key observations
Company Kolhapur Green Energy Pvt. Ltd (KGEPL) is a
overview
special purpose vehicle (SPV) promoted by
Sunilhitech Engineers Ltd. (SHEL) and its subsidiary
Sunilhitech India Infra Pvt. Ltd (SHIIPL) who has
entered into a Shareholder’s Agreement with
Rochem Separation Systems Pvt. Ltd. (RSSPL) on
February 20, 2014.. KGEPL was formed to establish
a Processing plant with a capacity of 180 TPD for
conversion of MSW into useful product i.e. Power
and other Recyclable by products at Kasaba Bavda
Village, Kolhapur, Maharashtra on Design, Build
Finance, and Operate and Transfer (“DBFOT”) basis
for a period of 30 years.
Project Rochem Separation Systems Pvt. Ltd. (RSSPL)has
Overview been awarded a letter of award on 17.09.2013 by
Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for
treating the MSW collection from the city of
Kolhapur on Design, Build, Finance Operate and
Transfer (DBFOT) basis.
KGEPL is a special purpose vehicle (SPV) formed
for the said purpose.
The Concession Agreement has been signed
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between KMC and KGEPL on 7th February 2014.
Means of Finance
Particulars Amt. Rs. in Lacs %
Owners Contribution 868.94 35%
Debt Finance 1613.75 65%
Total 2482.69 100%
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Financial Indicators – Rs. In Lacs
Sr.
Particulars Figures
No.
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Observations 1. KMC will be providing the following fee to KGEPL
for accepting & processing the MSW at the
established MSW processing plant for a period of
30 years with following financial offer:
Description Details
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generation.
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Conclusions The comprehensive scheme would address the
long term profitability. It would also help
Company to address and solve the issue of MSW
management and would enable company to bring
liquidity as well to protect the interest of all
stakeholders including the lenders.
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CHAPTER-1
PROMOTER’S PROFILE & PROJECT BACKGROUND
1.1.1 The land of 4hectare will be allotted to KGEPL by KMC on a lease basis. The
project is expected to achieve Commercial Operation Date (COD) by January
01, 2016.
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documents submitted by on dt. 20/06/2013 against the Tender Notice No.
27 dt.04/06/2013 for proposal to Establishment of Processing Plant for
Conversion of MSW to useful product (Power) at KasabaBavda, Village in
Kolhapur on DBFOT basis.
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1.2.3. Mr. Prayas Kamlesh Goel
Mr. Prayas Goel holds a degree in Mechanical Engineering from Bombay
University and his role at Concord Blue includes overseeing Business
Ventures, Equipment and Process standardization, Strategic vendor
Management, Growth and Corporate Strategy. At an early age of only 24 years
Mr. Goel invented and patented his own reverse osmosis waste water
membrane treatment technology, which today is installed in over 500
locations throughout the world. Clients range from private industry such as
distilleries, the Indian and Sri Lankan Navy and Government bodies for the
production of clean water. Today Prayas is the mastermind behind the
Concord Blue Reformer – A revolutionary technology in waste management
services. Prayas brings with him a world of experience in the areas of
engineering and process industries. Hailing from an entrepreneurial family,
Prayas has been at the helm of his business for over half a decade now.
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1.3 KEY MANAGEMENT TEAM OF KGEPL
KGEPL has a senior management team with cumulative professional
experience. Following are various Key Management personnel of KGEPL:
Name Designati Experience Detailed Experience Functional
on (in Years) duties at the
Unit
Mr. C. Director 33 Rich experience in Will look after
Venkataramana overall Project the overall
development project
Mr. Sunil Shinde General 15 Rich experience in civil Will look after
Manager works of major the civil works
infrastructure projects. of the project.
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1.4 COMPANY PROFILE OF RSSPL–
Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) is a company incorporated on
19th November 1991 with office located at 101, HDIL Tower, Anant Kanekar Marg,
Bandra (E), Mumbai.
M/s Sunilhitech India Infra Pvt. Ltd. (SHIIPL), a subsidiary of SHEL and
incorporated for infrastructure business by competitively bidding for projects
in the new & upcoming sectors like waste to energy, solar power projects, road
development & construction. The company would be targeting these projects
both on BOOT, EPC & Annuity basis falling under various authorities whether
it is National or State.
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1.6 PROJECT BACKGROUND –
Necessity of the project -
When a material is not suitable / usable for human society then that material
is called as waste for that society. Waste generation is 24 x 7 ongoing
processes. Waste generation and living organisms grow in direct proportion to
each other. As living standard increases per capita waste generation increases
and vice versa. By better handling of waste coming out from human society;
environmental burden and direct and indirect effect on human health can be
minimized.
Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) has been awarded a letter
of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for treating the MSW collection from
the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)
basis. KGEPL is a special purpose vehicle (SPV) promoted by Sunilhitech
Engineers Ltd. (SHEL) through its subsidiary Sunilhitech India Infra Pvt. Ltd.
The Concession Agreement was signed between KMC and KGEPL id signed on
7th February 2014 for setting up a MSW processing plant with a capacity of
180 TPD for conversion of MSW into useful product (Power) Kolhapur in
Maharashtra on “DBFOT” basis for a period of 30 years. The project is
expected to be completed within 08 months & commencement of commercial
operations of the project is expected to start by January 01, 2016.
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The Municipal Corporation has provide the4 Hectare land as per Concession
Agreement.
SHEL will be the main EPC contractor to implement the project on turnkey
basis as proposed by KGEPL.
The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is
proposed to be funded in a Debt to Equity ratio of 65:35. Total Owners
Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.
1613.75Lacs for the project would be tied up with Banks/ Financial
Institutions.
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KGEPL therefore have approached MITCON for assessment of techno-Economic
Viability (TEV) of its proposed project.
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a. Financial Projections for profitability statements, cash flow
statements and balance sheet.
b. Assessment of Working Capital requirements, margin money
requirement.
c. Assessment of needs of financial restructuring for long term debt
sustainability.
d. Operation and Financial Risk Assessment
e. Sensitivity Analysis
7. Conclusions on Technical and Economic Viability of the company’s
operations.
8. Any other aspect relevant to the study may also be incorporated and
justified
1.10 METHODOLOGY
In order to complete the assignment, MITCON adopted following
methodology:
a. MITCON team consisting of technical and financial experts visited
proposed site at Kasaba Bavda village, Tehsil Kolhapur, District,
Kolhapur, Maharashtra on 1st March, 2014.
b. We collected the information on implementation of proposed MSW
project.
c. We have relied upon the information shared by the company and
assessed the said information from the point of view of techno
commercial feasibility.
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CHAPTER-2
TECHNICAL FEASIBILITY
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The preliminary information about KMC is given bellow
1 Commissioner Mrs. Vijayalakshmi Prasanna Bidari
Agriculture
Agro-Food Processing
Foundries
Education Centers
MITCON team visited the proposed project site on 1st March; 2014 at Kasaba
Bawada, Kolhapur city, Maharashtra State and verified the following –
2.2 LAND -
Land admeasuring nearly 4 Hectare (nearly 10 Acre) is available with KMC to
set up the proposed project. KMC has handed over the same land for
development of waste processing (Waste to Energy) Plant as per RFP
document
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The land is bounded as follows –
On or towards Property on Sides
North Private Farms
South Agricultural Collage Farm
East KMC STP Plant
West Survey No. : R.S.845, 2596
(Source: MITCON Team Site Visit)
Please refer Annexure no. 1 for Google image of proposed site at kasaba
Bavda Kolhapur.
At present partial land is occupied by old dumped waste. Old dumped waste
removal process is under process by KMC. There is no civil structure
available on site and the land can be immediately put to use for the project
purpose.
Considering the land conditions, the proposed site allocated by KMC is
reasonably good location.
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Sr. No. Particulars
11 Weigh Bridge room
12 MSW Bay Area
13 Pollution Control Equipment
14 Security cabin
15 Boiler
16 Boiler Room
17 Transformer room
18 Switch yard room
19 HT/LT room
20 Engine Utility Shed
21 Latchet treatment plant
22 Water Pump room
23 Raw water storage plants
24 Consumer connection S/S & DG set
25 Store room
26 Air Compress
27 DG
28 Parking
29 DM plant
30 Turbine and substation
31 Parking and sanitization facilities
32 Workshop
33 Amenities
* These areas may vary in accordance with detail engineering.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 26
2.3 QUANTIFICATION OF SOLID WASTE GENERATION –
Year wise expected waste generations as per concession agreement, provided
by KMC are as follows.
Sr. No. Financial Year Ending March 31st MSW Quantity (TPD)
1 2015 140
2 2016 140
3 2017 140
4 2018 150
5 2019 150
6 2020 150
7 2021 150
8 2022 150
9 2023 160
10 2024 160
11 2025 160
12 2026 160
13 2027 170
14 2028 170
2029
15 180
(End of Concession Period)
Source: Concession Agreement between KMC & KGEPL
Nearly 140 TPD will generated in year 2015 to 2017, 150 TPD in year 2018 to
2022, 160 TPD in year 2023 to 2026, 170 TPD in year 2027 to 2028 and 180
TPD in year 2029 at end of concession period.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 27
SR. Sample No. Sample Avg. of Sample
Parameters Unit
No. I No. II No. I & II
A Physical Analysis
B Chemical Analysis
Gross Calorific Cal/g 5381.99 - -
1
Value
Ash Content at Cal/g 12.26 - -
2
8000C
Moisture Content % 64.39 - -
3
at 1050C
Volatile Matter at % 9.07 - -
4
9000C
5 Fixed Carbon % 14.25 -
6 Carbon % 21.91 - -
7 Hydrogen % 1.69 - -
8 Nitrogen % 0.59 - -
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SR. Sample No. Sample Avg. of Sample
Parameters Unit
No. I No. II No. I & II
9 Oxygen % 66.77 - -
10 Sulphur % 0.75 - -
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 29
Features Composting Landfill Incineration Gasification
completely
Covered)
Low
High (Waste gets
Process Time N/A Low
(>30 Days) disposed of in
the same day)
Construction
High Very High Low Low
Time
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Following comparative chart explains features of different technologies -
End Public
Technology Limitations
Products Acceptance
Technological Commercial
1. Non – 1. Problem in
operational in selling
Monsoon because of
Season poor
Partially
Composting Compost 2. Large space quality due
Acceptable
requirement to inert
3. Threat to materials
public health (Heavy
in proximity Metals)
1. Moisture 1. Lesser
Content is a output of
Limiting saleable
Gasification
factor energy.
/ Energy Acceptable
2. More fuel 2. High O&M
Pyrolysis
required in costs
rainy season
to heat mass
1. Moisture 1. Price
Content is realization
limiting of the
Potential
factor pallets is
for RDF
Palletisation 2. The quite low. Acceptable
&
technology is
Energy
non-
operational
during
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 31
End Public
Technology Limitations
Products Acceptance
Technological Commercial
monsoon
season.
1. Multi 1. Low
seasonal captive
MSW can be power
acceptable & requireme
there is no nt for
change in burning
Power mass at
Incineration Energy Acceptable
Generation very high
output. temp.
2. The disposal 2. Low O & M
of residual cost
Ash is a
resource
factor.
Thermopholic 1. Efficient
Anaerobic process &
Digestion is quality
the most output.
Energy
suited 2. Compost is
Anaerobic &
technology organic in Acceptable
digestion Organic
for Indian nature &
Compost
conditions: can be
1. Operational used for
all year top soil
round. replaceme
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 32
End Public
Technology Limitations
Products Acceptance
Technological Commercial
2. It is a closed nt or can
process & be blended
thus there is with NPK,
no nuisance for better
in & around acceptance
site. & price
3. It can be realization.
accelerated 3. The land
through requireme
proper nt is
segregation minimum.
of waste.
Ministry of New and Renewable Energy (MNRE) ministry of Govt. of India has
defined the criteria of selection of waste processing.
An evaluation checklist with the ratings for the different main and sub-
criteria for the five competitive technology options showed the following
overall scores and rank
Technology Score (Max 150) Rank
Biomethanation 107 1
Incineration 83 2
Gasification 80 3
Landfill with gas recovery 75 4
(Source: Ministry of Non-conventional Energy Source)
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Incineration technique is at Rank No. 2, since the power generation is more
than bio-methenation per MW capital investment is lower as compared to
other techniques, therefore, KGEPL has decided to adopt Incineration
technology for power generation.
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2.5 PROPOSED PROCESS AND TECHNOLOGY :
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
Introduction :
The Single Segment Reverse Push Stoker System shall be capable of
combusting municipal waste.
This technology is based on the existing reverse push reciprocation grate, and
its core is in view of the living MSW features of low heat value and high
moisture. The MSW could be more fully burned by Single Segment Reverse
Push Stoker system so as to decrease the heat reduction rate of ash slag. The
primary air used for supporting burning is preheated by secondary air heater
to make the temperature more than 240 ºC to 250 ºC, so as to make the MSW
that enters into furnace dried, fired and burned at a quick speed. The extra air
factor of boiler is designed to be over 1.6, to maintain sufficient oxygen in
boiler and reduce the production of Toxic Equivalent Quantity. AV & UE’s
boiler, high-temperature secondary air sprays into at a high speed to make
sufficient disturbance of flue gas, prolong the residence in furnace, so as to
improve the combustion condition to ensure the flue gas temperature not
lower than 850 deg. C in furnace and residence over 2 seconds.
In view of the situation that the primary air which is used for supporting
burning is difficult to control, division air chambers is designed, that is in
accordance with the different regional features during MSW burning, the air
chamber under the grate is divided into several relatively independent air
chambers, each chamber equipped with air adjust door. Under certain air
pressure, by adjusting the primary air amount in one or several or all air
chambers, the regional or the whole combustion condition could be improved.
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The open range of air door and air amount is designed to be linear ratio, and
the combustion condition could be exactly controlled by auto control system.
PIT MANAGEMENT
• 4 to 5 days of the plant capacity is dumped in the pit.
– The garbage is not kept in open as odor has to be managed
– The garbage leaves the moisture and the CV increases due to anaerobic
activity.
• The efficiency of power generation in a steam power plant highly depends on
the pressure and the temperature of superheated steam. In Municipal Solid
Waste (MSW) based waste to energy plants the range of steam parameters is
typically around 46 bar and 410°C. High pressure and high temperature cycles
are crucial for increasing the operating efficiency and the power output from
the Municipal Solid Waste (MSW) Waste to energy plants.
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MSW FUEL FIRING GRATE SYSTEM
The moving grate mechanism (normally inclined although horizontal grate designs
are operating) moves the burning solid waste from the inlet to the outlet. Primary
combustion air passes from below the grate underneath the burning solids and flow
through the waste bed into the freeboard zone above the bed. Secondary and tertiary
air injection ports are used to ensure complete combustion of the gas phase
components volatilized from the solid waste. Typical regulations require the flue gas
to be held at a minimum temperature of 850oC for two seconds after the last injection
of combustion air.
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MSW based power plant flow diagram
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2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
Better combustion & longer life
Combustor
Higher excess air to maintain optimum grate temperature of less than 950 °c
Because of High excess air no ash fusion & clinker formation on the grate
Secondary air at correct location to ensure better air penetration & turbulent
mixing and better post combustion
Furnace 1st pass with special type refractory lining low gas velocity & long
residence time
Refractory lining take care of furnace corrosion due to change in atmosphere
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ENVIRONMENTAL MANAGEMENT PLAN:
The plant engineer will draw a schematic plan for plantation, gardening, drainage
system to enforce proper implementation & reporting to plant engineers.
Pollution Control:
Power plant main pollution is boiler waste gas with ash dust for which
Electro Static precipitator (ESP) is fitted. Ash is collected at bottom and
pneumatically conveyed collected in Ash silo, Ash mixed with water from
ash silo by tuck dispatched to dumping yard. Ash can be used for cement
manufacturers. Fine ash from ESP contains 92% silica, which can be for
silica gel of pure silica by chemical reaction. It gives a rich dividend.
Water pollution is little during cooling tower blowing and D.M. plant blows
acidic or alkaline water, which is neutralized, in small tank. The water is
ultimately used in plantation.
Control Method of Air Pollution:
Air pollution is controlled through E.S.P. and outlet air form ESP having 50-
mg/mg3 airs is discharged to atmosphere at 55-meter stake height
chimney.
Dust area bag filters (suction) type is fitted to collect dust in fitter bags & a
little water spray arrangement (sprinkler) controlled avoid reducing air
pollution.
Control of Water Pollution:
Water pollution is little as explained it is neutralized in small tanks. Then
water is used for gardening purpose.
Control of Thermal Pollution:
Thermal pollution at initial stage taken care by each equipment suppliers,
boilers, ESP,T.G. steam pipe line, all are woolen with aluminum cladding
covered which will reduce heat loss. This power plant thermal cycle unit
loss of thermal energy is inefficient operation.
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Control Method of Noise Pollution:
All Equipment maintenance noise below 20 dB during steam exhaust in air
goes up to 80 db. Power residential area steam exhaust have silencer but
during turbine tripping steam are exhausted to air to bring down the boiler
pressure.
2.9 MACHINERY -
Equipment & Technology Supply
SHEL will source equipment from AV-UE. The indicative list of indigenous
equipments is as under:
Sr. No Equipments
1 Weigh Bridge
2 Refuse Bunker
3 Refuse Crane
4 Charging Hopper
5 Chute
6 Feeder
7 Stoker
8 Clinker Roller
9 Ash Extractor
10 Ash Cane
11 Ash Pit
12 Forced Draft Fan
13 Waste Heat Boiler
14 Fabric Filter
15 Induced Draft Fan
16 Stack
17 Crane Control Room
18 Control Room
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2.10 MAN POWER REQUIREMENTS –
Designation Quantity
Plant Manager 01
Manager E and I 01
Asst. Manager Utility Maintenance and 01
Project
Operation Team
Shift Incharge (Electrical / Mechanical) 01
Shift Technician (Electrical) 01
Shift Technician (Mechanical) 01
Boiler Operation Team
Shift Engineer (Electrical / Mechanical) 01
Shift Technician (Electrical) 01
Shift Supervisor - Non 01
Technical(Production of MSW)
Utility, Engine Room & Substation Area-
Operation/Maintenance
Shift Engineer (Electrical / Mechanical) 01
Shift Technician (Electrical/Mechanical) 01
Maintenance –Boiler & Ash Handling
System
Shift Engineer (Electrical / Mechanical) 01
Shift Technician (Mechanical) 01
Environmental Management
Plant Engineer 01
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Designation Quantity
Stores
Stores/Purchase Manager 01
Asst. Stores 01
General
Admin and HR Executive / liasoning 01
Security Supervisor cum safety Officer 01
Weigh Bridge Operator 01
JCB Operator _Company JCB 02
Quality Controller(GCV, Moisture, Gas 01
Analysis)
Driver 01
Office Peon 01
Out Sourced Labour
Security Supervisor and Guards 01
Manual Segregation Labour Team 01
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2.11 STATUTORY & NON-STATUTORY APPROVALS
Sr. Concerned
Approval/Clearance Responsibility
No. Agency
Site authorization under MSW
1 MPCB Concessionaire
Rules
Consent to establish under the
2 MPCB Concessionaire
Air and Water Act
NOC from Fire Department, Fire Department,
3 Concessionaire
KMC KMC
4 Disaster Management Plan DMD, KMC Concessionaire
5 Electricity Approval MSEDCL Concessionaire
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2.12 CONCLUSION
On the basis of Technical Scrutiny of the upcoming unit, we are of the opinion
that -
1) KGEPL proposes to implement Reverse Push Reciprocating Grate technology
of converting municipal solid waste to energy.
2) KGEPL will source Equipments from AV-UE.
3) Provision of machinery, utilities, and misc. assets are adequate.
4) The infrastructure in the form of building and sheds is adequate to support the
projected production.
5) Company proposes to induct training programs with the help of technology
provider and therefore should not face any problem for implementation of
project.
6) Based on the data provided and observations during the site visit, the project
is considered to be technically feasible.
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CHAPTER-3
MARKETING VIABILITY
It is estimated that the total solid waste generated by 300 million people
living in urban India is 38 million tonnes per year (MSW Manual). The
collection and disposal of municipal solid waste is one of the pressing
problems of city life, which has assumed great importance in the recent past.
With the growing urbanization as a result of planned economic growth and
industrialization, problems are becoming acute and call for immediate and
concerted action. The proper disposal of urban waste is not only absolutely
necessary for the preservation and improvement of public health but it has
an immense potential for resource recovery.
World oil prices increased by more than 50% during the seventies, i.e.
subsequent to the oil embargo by OPEC (Organisation of Petroleum
Exporting Countries). This necessitated a global search for alternative energy
resources. The Government of India recognized this potential and formulated
a separate ministry, Ministry of Non-Conventional Energy Sources (MNES) in
the year 1992. The functions of MNES is to co-ordinate, fund, manage and
implement the projects in the nonconventional energy sector utilizing
resources such as the wind, solar, biogas, hydro and geothermal and urban
and industrial waste in the country. There is an exclusive group in MNES,
which deals with "Energy Recovery from Wastes". The waste-to-energy
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projects are implemented through National Programme on Energy Recovery
from Urban and Industrial wastes and UNDP/GEF.
Waste-to-Energy projects form an integral but small part of the overall waste
management strategy. Its future growth is, hence, inseparably linked with the
progress made by the country in waste management.
As per MNES the potential of the MSW for conversion to energy is presented
as bellow.
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Power Generation
Period MSW Generated (TPD)
(MW)
2002 97174 1638
2007 130927 2266
2012 189986 3276
2017 265834 4566
The rationale for the targets and time frame for the NMP is based on
achieving the Waste-to-Energy potential of Urban and Industrial sectors as of
2002 by the end of the 12th Five Year Plan (2017).
For the Eleventh and Twelfth Five Year Plans the targets are based on the
successful implementation of the above strategies and accelerated growth in
implementation of WTE projects to achieve the final targets at the end of the
Twelfth five year plan.
Based on the above rationale, the targets and time frame for the period 2004
to 2017 are developed and are presented as bellow.
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Source: MNES
For summarizing the waste potential the cities were divided into the four
categories based upon the population of the city (Year 2001). The
characteristics of the Cities are defined as:
1) South Region
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2) North Region
3) Western Region and
4) Eastern Region
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1) South Region
On the basis of above criteria, Cities in Southern India are divided in
following categories
Sr. No. Categories No. of Cities
1 Very Big 3
2 Big City 1
3 Medium City 11
4 Small City 94
The class I cities of the southern region generate about 24720 tons of solid
waste every day, of which about 10215 tons is generated from the very big
cities like Hyderabad, Chennai and Bangalore. The big cities in the zone
generate about 490 tons of solid waste and medium size cities generate solid
waste to a tune of about 4325 tons per day (17% of the total solid waste
generated in the region). The total solid waste generation in the small cities is
about 39% of the generation in the region, which is about 9690 tons/day. The
quantum of solid waste generated in each category of city is shown in pie
chart below.
39% 42%
17% 2%
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2) North Region
On the basis of above criteria, Cities in Northern India are divided in
following categories
Sr. No. Categories No. of Cities
1 Very Big 4
2 Big City 7
3 Medium City 11
4 Small City 96
About 29682 tons of solid waste is generated every day in class I cities of
northern region of the country, of which about 13110 tons is generated from
the very big cities like Delhi, Kanpur, Lucknow and Jaipur. The big cities of
the region generate about 4372 tons per day, medium size cities generate
solid waste to a tune of about 4137 tons per day (14% of the total solid waste
generated in the region). The total solid waste generation in the small cities is
about 27% of the generation in the region, which is about 8063 tons/day. The
quantum of solid waste generated in each category of city is shown in pie
chart bellow.
27%
44%
14%
15%
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3) Western Region
On the basis of above criteria, Cities in western India are divided in following
categories
Sr. No. Categories No. of Cities
1 Very Big 7
2 Big City 6
3 Medium City 13
4 Small City 69
About 28785 tons of solid waste is generated every day from class I cities of
western region, of which about 18479 tons is generated from seven very big
cities. Around 2790 tons of solid waste is generated from big cities. The
medium size cities generate solid waste to a tune of about 2958 tons per day
(10 % of the total solid waste generated in the region). The total solid waste
generation in the small cities is about 16% of the generation in the region,
which is about 4559 tons/day. The quantum of solid waste generated in each
category of city is shown in pie chart below.
16%
10%
10%
64%
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4) Eastern Region
On the basis of above criteria, Cities in Eastern India are divided in following
categories
Sr. No. Categories No. of Cities
1 Very Big 1
2 Big City 2
3 Medium City 6
4 Small City 92
About 13986 tons of solid waste is generated every day in the eastern region
of the country, of which about 6962 tons is generated from the city of
Calcutta. The big cities generate about 934 tons per day and medium size
cities generate solid waste to a tune of about 1158 tons per day (8.2 % of the
total solid waste generated in the region). The total solid waste generation in
the small cities is about 35% of the generation in the region, which is about
4931 tons/day. The quantum of solid waste generated in each category of the
cities in eastern region is presented in pie chart below.
35%
50%
8%
7%
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3.3 MUNICIPAL SOLID WASTE GENERATION -
The large quantum of diverse wastes originating from urban and industrial
activities can be considered as a valuable renewable energy resource.
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MSW Capacity (TPD)
Parameter
>1000 500-1000 500-150 <150
Grade A Cities
Zones
North 4 6 3 11
South 3 3 13 12
West 5 2 8 5
East 1 0 3 7
Total No. of Cities 13 11 29 35
Waste Quantum
1150-9786 515-865 150-475 45-140
Range (TPD)
Energy Potential
15-143 Jul-17 02-Aug 0.67-2
Range (MW)
Grade B Cities
Zones
North 1 2 6 45
South 0 2 10 50
West 1 2 11 36
East 0 2 5 36
No. of Cities 2 8 32 167
Waste Quantum
1079 -2142 502 - 712 152-359 25-148
Range (TPD)
Energy Potential
16 - 31 07-Nov 1.8-4.7 0.37-2.7
Range (MW)
Source: MNES
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As per Ministry of Non Conventional Source power generation potential are
6913 MW based on 50:50 proportion of biological and thermal WTE
conversion options on twelfth (2012-2017) five year plan.
Zone-wise distribution of cities on MSW generation rates
City / Category
North South West East
MSW Total
No. No. No. No. %
Generation TPD
TPD of TPD of TPD of TPD of
Cities Cities Cities Cities
> 1000 14309 5 10214 3 17648 6 6963 1 49134 51
500 – 1000 3044 5 503 1 1696 2 628 1 5871 6
250 – 500 4297 12 4597 12 3410 10 568 2 12872 13
150 - 250 1199 6 2366 13 2155 12 1047 6 6767 7
50 – 150 6441 82 7041 80 2378 27 2907 38 18766 19
< 50 391 8 - - 1499 38 1874 53 3764 4
Total 26274 80 24977 93 29231 71 15987 55 97173 100
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Power Generation Potentials based on MSW/WTE technologies
Five Year Plans Target / Potential
Sr. No. Details Unit 2001-
2006-07 2012-13 2016-17
02
A. Capacity: >1000 TPD MSW Generation
1 No. of Cities 15 19 28 41
MSW
TPD 49135 79972 127748 195526
Generation
Energy
MW 835 1400 2230 3388
Potential
B. Capacity: 500 - 1000 TPD MSW Generation
2 No. of Cities 9 19 28 35
MSW
TPD 5870 13184 19610 24120
Generation
Energy
MW 110 232 351 416
Potential
C. Capacity: 250 - 500 TPD MSW Generation
3 No. of Cities 30 40 56 64
MSW
TPD 10605 14098 19295 23542
Generation
Energy
MW 186 246 304 382
Potential
D. Capacity: 150 - 250 TPD MSW Generation
4 No. of Cities 30 47 60 76
MSW
TPD 5518 8953 11504 15093
Generation
Energy
MW 87 143 192 253
Potential
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E. Capacity: 150 - 250 TPD MSW Generation
5 No. of Cities 215 174 127 83
MSW
TPD 15098 14720 11829 7554
Generation
Energy
MW 243 246 198 126
Potential
F. Total
MSW
TPD 86226 130927 189986 265835
Generation
Energy
MW 1461 2267 3275 4565
Potential
The quantum of the GHG that will be captured while achieving the targets is
illustrated through figure bellow. Around 228500 tons of carbon equivalence
GHG will be captured before the end of the twelfth five-year plan. This
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quantum is based on the total estimated potential of energy generation from
MSW and industrial wastes.
Above all figures shows the huge potential of Waste to Energy projects in
India. To achieve above targets government has announced some incentives.
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Andhra On lease. Terms Preference to -
Pradesh not specified those who lift at
their cost or lift
50% and pay
royalty
Karnataka - - Rs.2.60/unit
(1997-98)
Haryana - - @2.25/unit
(1994-95) +
5%
escalation
every year
Maharashtra At nominal lease MC will take @2.25/unit +
rent responsibility to 5%
provide requisite escalation
MSW for the every year
projects
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Acts/ Rules/ Brief Description Remarks
Notifications
Pollution) Cess Act, (tax) on water unit.
1977 consumed by persons
carrying on certain
industries and by local
authorities
The Air (Prevention Objective is to prevent, Company will have to
and Control of control and reduce air control emissions of
Pollution) Act, 1981 pollution including dust and noise, during
noise pollution the construction and
operation phase,
including exhausts
from vehicles.
The Environment An umbrella legislation In general, the WTE
(Protection) Act, 1986 that takes into plants will have to
accounts all the aspects consider the
of environment. requirements under
Management of the EP Act. This is
hazardous chemicals, likely to include the
wastes, micro- EIA notification as
organisms, etc. also well.
included
Environment It gives standards for Compliance required.
(Protection) Rules, emission/ discharge of
1986 and their pollutants, procedures
amendments from for taking samples,
time to time(up to
2001)
Bio - Medical Waste These rules apply to all Bio - medical waste
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Acts/ Rules/ Brief Description Remarks
Notifications
(Management and persons who generate, rules are applicable to
Handling) Rules, 1998 collect, receive, store, WTE projects and
transport, treat, their compliance is
dispose or handle bio - required
medical waste
in any form
Notification for Coastal Declared the coastal This shall be
Regulation Zone (CRZ), stretches of seas, bays, applicable if the WTE
1991 estuaries, creeks, rivers plant falls under the
and backwaters which CRZ designated area..
are influenced by tidal
action, up to 500 m
from the high tide line
and the land between
the low and high tide
lines
The Hazardous Prescribe guidelines Hazardous waste that
Waste(Management for handling hazardous is likely to be
and Handling) Rules, wastes produced in the event
1989(amended 2000) of WTE projects have
to follow these rules.
Municipal Solid Waste These rules apply to all Compliance required.
Rules those municipal
authorities that are
responsible for
collection, segregation,
storage, transportation,
processing and
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Acts/ Rules/ Brief Description Remarks
Notifications
disposal of municipal
solid wastes.
Indian Electricity Act Governs the relations Issue of licensees for
between the consumer the generation,
and licensee supplying distribution and
electrical energy to the supply of electrical
consumer or other energy. Compliance
licensees required.
Policies and Guidelines Prescribes various Proponents should be
of MNES incentives and complying with the
eligibility eligibility criteria to
criteria for setting up avail the incentives
of Waste-to-energy promoted by MNES.
plants.
State Level Policies Describes the policies/ Proponents should
incentives given by comply with various
various state provisions policies
governments to and guidelines of
promote WTE projects different states
The 74th Constitutional Delegates the Municipal
Amendment responsibility of MSW Corporations should
disposal with the find efficient ways of
municipal MSW treatment and
corporations. disposal.
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3.6 FLYASH BRICK MARKET VIABILITY
USES AND APPLICATIONS
Fly ash bricks are used in building industry.
Fly ash Sand-Lime bricks Building industry:
Fly ash sand-lime bricks can be used as an alternative material for burnt clay
bricks which is one of the important building materials used for construction
of housing and buildings. The fly ash building bricks are unable in all types of
brick masonry works and can substitute the conventional burnt clay bricks in
nearly all applications.
6. Saving in fuel.
MARKET SURVEY
Construction work is basis to out development efforts - for agriculture and
industry for the development of water, power transportation and
communication system and certainly for housing the people so that their living
standard can be upgraded to promote their welfare and happiness.
Construction accounts for about 50% of the total development all our lays; but
the scale of Housing shortage along should be sufficient to dispel any illusions
as to be adequacy of our present efforts. It is imperatives therefore, that no
lower the construction cost substitute; materials of improve performance can
be developed and made available for mass scale use in developed and made
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available for mass scale use in urban as well as rural areas. Lime an excellent
cementing material in terms of its workability imperviousness, inherent
strength etc. is ideal for this purpose. Lime along in conjunction with
puzzolenic material like fly ash can prove a good substitute for cement. In
India is the estimate production capacity of all the brick industries is about
900 million which is far below the market demand and the shortfall is likely to
increase manifold in future years during which a large increase in the building
activity is anticipated. It is well recognized that traditional method of hand
moulding cannot cope with the heavy demand.
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Appendix
O R D E R:
In the G.C. 1st and 2nd read above Government have constituted the
Technical Committee and the State Level Official Committee to undertake
Techno-Economic assessment of the bids received by this Municipal
Corporation of Hyderabad in connection with establishment of Power
Generation Plant by using garbage and other Municipal Solid Waste or inputs.
The Technical Committee after examination of the bids received made certain
recommendations for the consideration of the State Level Official Committee
for taking further decision. The State Level Official Committee which met on
24.11.1995 under the Chairmanship of Chief Secretary has considered the
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recommendation of the Technical Committee and accordingly accepted the
recommendations of the Technical Committee which are given below.
vi) The allocation of areas for free lifting of garbage be clearly demarcated. They
may be partly in Municipal Corporation of Hyderabad area and partly in the
surrounding municipal area to suit the convenience of the parties.
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vii) The power and water required may be arranged at the sites on payment
terms, Andhra Pradesh State Electricity Board and Hyderabad Metro Water
Supply & Sewerage Board shall make necessary arrangements to supply
power and water at the selected sites. Municipal Corporation of Hyderabad
may inform the requirements to the respective departments.
viii) The land required by the respective promoters be allocated on lease.
Wherever necessary further alienation or acquisition may be initiated by
Municipal Corporation of Hyderabad.
ix) The agreement to be concluded with the prespective, promoters be carefully
worded in consultation with the Standing Counsel of Municipal Corporation
of Hyderabad to avoid any possible future legal implications and safeguard
Municipal Corporation of Hyderabad interests.
x) To avoid delay in commissioning the plants, a performance guarantee of
2.5% of the total Project cost be obtained by way of Bank Guarantee/FD
pledged in favour of Municipal Corporation of Hyderabad.
xi) The existing general guidelines and policies for power purchase, wheeling,
banking etc, are to be followed.
xii) Municipal Corporation of Hyderabad shall ensure that the work on projects is
started within a maximum period of one month.
3. Government also direct that the procedures adopted for the Municipal
Corporation of Hyderabad are approved by the State Level Official
Committee shall be applicable to all the Selection Grade Municipalities
and other Municipal Corporations in the State of Guntur, Warangal,
Kurnool and Visakhapatnam with the condition that the entrepreneur
shall be impressed upon to collect and lift garbage at his own cost in at
least 16th or 17thy area in each town closer to the garbage disposal
yard.
C. ARJUNA RAO,
PRINCIPAL SECRETARY TO GOVERNMENT
To
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The Commissioner, Municipal Corporation of Hyderabad
All this commissioners of Selection Grade Municipalities/Corporations
Copy to
Members of Committee
P.S. to Chief Secretary
P.S. to Principal Secretary, U.A. & U.D. Dept.
P.S. to Secretary, M.D and U.D Dept
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VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT FOR
FACILITATING WASTE TO ENERGY PROJECTS
MADHYA PRADESH
In line with the policy of the Government of India, the Govt. of Madhya
Pradesh has decided to give the following incentives for development of non-
conventional energy sources.
1. Any industry, institution or a private agency, desirous of installing a power
generating unit based on non-conventional energy sources like mini- micro
to hydel projects, wind energy, bio- energy ,solar energy etc. in Madhya
Pradesh shall be welcomed to establish such a unit & shall be eligible for
incentives.
2. The party may set up the unit either by itself or as a joint venture with M.P
UrjaVikas Nigam Ltd.
3. There will be no restriction on generation capacity. The parties may use the
power generated themselves at the point of generation or any other place or
sell it to MPEB or to a third party, but the third party must be an I.I.T
consumer of the Board.
4. For wheeling of power from the point of generation to any other place for the
party’s own use or for selling it to a third party, wheeling through MPEB’s
transmission /distribution system will be allowed on payment of 2%
wheeling charges .The state government will separately compensate MPEB
towards line losses etc. at the rate of 4% of the power wheeled. The wheeling
charges will be irrespective of the distance to which the power is wheeled.
5. Power generated through non – conventional energy resources will be
purchased by MPEB at the rate of Rs.2.25/unit .For sale of power to a third
party, the rates are to be settled mutually between generating party and third
party.
6. Electricity generated from non- conventional energy sources, sold to MPEB
or a third party or consumed by the party itself will be exempted from
payment of electricity duty for 5 year.
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7. Any industrial unit which is a consumer of MPEEB and which establishes a
power generating unit from non – conventional energy sources for its own
use will be given exemption from the demand cut to the extent of 30% of the
installed capacity of non-conventional energy unit.
8. Metering equipment for the sale of power will be provided by the party at its
cost at the points decided by MPEB.
9. The transmission /distribution lines and transformers required for
transmitting power from non-conventional energy generating unit to the
nearest grid substation of MPEB and also equipment required for
synchronizing, protection etc.will be provided by the party as per
specifications of MPEB or these can be provided by MPEB at the cost of the
party. However, these lines /equipment will be maintained by MPEB , but the
party will be required to pay operation and maintenance charges as decided
by the MPEB.
10(I) Use of government land if available will be permitted to the party
initially for a period of 30 years subject to removal.
(II) In case of non- – availability of Government land, the Government will
acquire private land and made available to the part at acquisition cost.
No service charges will be payable.
11 Plant and machinery, which is installed for generation of power from non- –
conventional energy sources, shall be exempted from State sales Tax.
12. (I) Any eligible industrial undertaking setting up non- conventional power
generation system in the state of Madhya Pradesh will be allowed Sales
– Tax exemption or deferment or composite benefit to any one of its
industrial units on the investment on non–conventional power
generation system. Benefit under this scheme will be available for
maximum six years and quantum of sales Tax benefit will be available
up to the eligible investment on non- – conventional power generating
system. Such an entrepreneur will be required to indicate the name of
his industrial unit and give his option out of the aforesaid alternative
incentives at the time of application.
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(ii) Sales Tax exemption – An industrial undertaking situated in Madhya
Pradesh will be eligible for Sales Tax exemption on the goods
manufactured and sold.
(iii) Sales Tax Deferment – Under the sales Tax deferment Scheme, the
recovery of Sales tax collected by the industrial undertaking situated in
Madhya Pradesh on the sale of goods manufactured by it, which is
payable to the state government will be kept deferred for the period
during which deferment is available, after expiry of which it will be
recovered in six annual interest free installments.
(iv) Composite benefit – Under this scheme, eligible industrial undertaking
can makecertain transactions under exemption and certain transaction
under deferment scheme and avail the benefit accordingly.
(V) Under the scheme of Sales tax Deferment or composite benefit, the
amount so deferred will be recovered in six annual installments
beginning from the next financial year, after the unit has exhausted its
eligible amount.
13. If any party setting up non- conventional power generation system in
Madhya Pradesh, sells its power generation to any other industrial unit (for
which rate of power will be settled as per mutual agreement between the
generator and user industrial undertaking can avail the exemption on the
sales tax of its deferment or composite benefit, etc to the extent of eligible
investment on non- conventional power generating system.
14. Power generating units based on non – conventional energy sources will be
treated like an industry and all the concessions applicable to new industrial
units will be applicable to these power generating units also.
15. The parties desirous of setting up non – conventional power generating
system will be required to give their applications to M.P UrjaVikas Nigam Ltd.
with a copy to Secretary, M.P. Electricity Board, and Jabalpur. After approval
by M.P UrjaVikas Nigam, the generating unit and also the user unit will be
required to enter into necessary agreements with M.P Electricity Board.
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Generation of Electricity from the Garbage
Proposals from certain organisations – Policy decision taken by the
government –
Orders issued
Read:
ORDER
Certain institutions have presented project proposals for generation of
Electricity form garbage collected in Chennai City area. They have requested
the Government for an assured supply of garbage, allotment of lands near the
dumping centers of Corporation of Chennai, and an assurance regarding
purchase of electricity produced by them out of garbage by Tamil Nadu
Electricity Board at an acceptable price.
The Government has examined these proposals in detail. The project if
implemented will not only help in solving the problem of finding new
dumping sites for garbage but also help us in the upgradation of overall
development. Considering the usefulness of the project a policy decision has
been taken on the various issues and accordingly the Government Issue the
following orders.
(i) Power plants using garbage as fuel come under the category of non-
conventional energy sources. Tamil Nadu electricity Board, has a particular
policy for power purchases from non-conventional producers, The present
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purchased price for power from the producers of energy is Rs.2.25 kWh. 5%
increase each year from the year 1995-96.This rate will applicable to the
energy producing plants using garbage as fuel.
(ii) The developers of energy producing plants using garbage will be provided
with lands on lease basis near the garbage dumping centers of the
Corporation of Chennai at Perungudi, Vellacherry and kodungaiyur. The lease
rent would be fixed as Rs.10,000/- per acre per year and the lease period
would be 20 years.
(iii) TIDCO would call for bids for putting up of such plants in the city of Chennai
indicating the land availability and the purchase price of Tamil Nadu
Electricity Board as indicated in the paragraph (i) and (ii) above from the
promotion of such energy producing plants to quote the rate that they could
offer for garbage. TIDCO would also prequalify bidders if found necessary.
The bid proposals should be examined by the Managing Director, TIDCO and
sent to the Government. The government will issue orders on the Managing
Director TIDCO. This order issue with the concurrence of the Finance
Department vides its U.O.No.130/FS/1/97, dated 11.1.1997
K.A Nambhiar
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 77
To
The Director General of Municipal Corporation,
Chennai – 600003
The Commissioner, Corporation of Chennai, Chennai 600003 through mayor
The Managing Director, TIDCO, Chennai.
The Chairman, Tamil Nadu Electricity Board, Chennai – 2
The Accountant General, Chennai 600075
Copy to:
The Secretary to Government, Finance Department, Chennai-5
The Secretary to Government, Energy Department, Chennai-5
The Secretary to Government, Industries Department, Chennai-5
The Secretary to Government, Revenue Department, Chennai-5
M/s Satish Association, Chennai 600040
3.9 CONCLUSION -
From the above data it can be concluded that there is huge potential for
municipal solid waste management projects throughout India. Projects are
on hand is social necessity as these projects are reducing the environment
issues of waste management and on the other hand manufacturing power
which is also the need of the hour.
In view of this, the project under consider the viable from marketing point of
view also.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 79
Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat
Private /co-
Participation Private Private Private Private Private Private Private Private
operative
2% within
Rates for 2% for sister
5KM &
6% of 2% of 2% of 2% of 2% of 2% of
2% of energy 12.5 %
concerns,15% energy energy energy energy energy energy
Wheeling beyond
for others
5Km
Allowed
Allowed 2% Allowed Allowed Allowed Allowed
Allowed for 12 Allowed for Not at 25
Banking for 12 for 12 for 12 for 12
months 12 months allowed for 8-12
Charge months months months months
months
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 80
Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat
At Rs. 2.25 per At Rs 2.25 per Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/
unit; Escalated unit Escalated unit unit unit unit unit unit
Rs 2.25
Buy back
escalated escalated /unit escalated escalated escalated escalated
at 55 (94-95) at 5% for
5% 5% 5% 5% 5% 5%
(1997-98 (w.e.f 1-4-
5 years (95-96) 94-95) (94-95) (94-95) (94-95)
base) 2000)
Allowed to Allowed
Third party Not
Allowed Not Allowed link to Allowed Allowed Allowed less Allowed
allowed
Sale HT tariff than HTT
Subsidy As to
Other
Participation in @Rs 25 other
equity by SEB - Lakhs/MW - - - - -
Incentives for Cogen. for Cogen industry
only
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 81
CHAPTER-4
FINANCIAL VIABILITY
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Key Figures
Year ending 31/03/14 31/03/13 31/03/12
TNW 315.83 285.38 253.71
Net Block 119.92 118.35 141.17
Sales 1432.24 1,096.02 855.59
PBDIT 141.87 131.58 121.38
PAT 24.98 27.93 23.97
Cash accruals 49.35 57.52 54.80
Key Figures
Till date no commercial operation has started.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 83
4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL)-
4.3.1 Project cost –
Sr. No. Particulars Total Cost in Lacs
1 Plant & Machinery 1666.68
2 Civil Costs 613.42
Overheads & Contingency Exp. 45.60
3
@ 2%
Pre-operative Expenses 45.60
4
@ 2%
Financing Costs 1.50% 34.20
5
6 Interest During Construction 77.18
7 Total Project Costs* 2,482.69
Observations:
a. The total project costs considered is excluding the power transmission costs.
b. KGEPL will contribute around 35% of the project costs, Rs. 868.94 Lacsas its
own contribution, while it will avail term loan of Rs. 1613.75Lacs, which is
65% of the total project costs.
c. Bank must ensure that sufficient amount of own contribution is brought in by
the promoter and is supported by Certificate from Chartered Accountant.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 84
4.4 ASSUMPTIONS OF THE PROJECT –
1. The project implementation period is 08months. During this period the total
project from concept to commissioning shall be completed and project shall
start yielding revenue after completion of construction period.
2. The plant will run for 292 days in threeshifts.
KGEPL will have to pay land lease rental as per agreement with Kolhapur
Municipal Corporation (KMC)
3. Municipal solid waste (MSW) of around 180 TPD would be collected by KMC
by using their own mechanism and would be provided to KGEPL up to project
site.
4. The daily un-segregated MSW of 180 tons, will be utilized for generation of
power (1.8 MWh) .
5. Plant load factor considered by KGEPL is assumed at 80.00% throughout the
years. Since the plant load factor looks very optimistic, financing banker has to
take assurance from the technology provider that given the site condition and
waste characteristic, the plant on an average will be able to operate at 80.00%
capacity.
6. Power rate assumed at Rs. 5.88/- per unit with no escalation of throughout
the financial projection.
As per MSEB basis rate for 2015 is Rs.5.97/- per unit. And petition by All
MSW Waste to Energy project developer for escalation of rates. The
requested rates for different states are as follows,
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 85
Sr.No. Name of the state Ref. Petition No. Power purchase /
unit
01. Maharashtra - 6.42
02. Gujrat 1052/2010 6.80
03. Delhi 35/2012 6.44
04 Harayana -- 6.41-6.53
By considering MSEB power purchase rate and present petition rates, KGEPL
has assumedthe rate of Rs. 5.88/- per unit on conservative basis.
7. The realization price from the sale of Fly Bottom Ash is considered at Rs. 150
per ton.
8. Tipping Fees Income considered is Rs. 308 per ton with no escalation clause.
9. Operation and maintenance expenses have been considered at Rs. 165 Lacs
per annum with escalation of 3% every year..
10. Rate of Interest assumed for term loan is 13.50 %. Repayment period of
10.00 years in structured manner in ballooning method.
11. Construction year has been assumed for 8 monthsand moratorium period of
1 Year.
12. The income so generated from the project is 100% exempted u/s 80IA of the
Income Tax Act, 1961 for a span of 10 years
Observations on assumptions –
a. Working days –
Working of 292 days in a year for three shifts is reasonable considering the
nature of the project.
b. Installed capacity –
Installed capacity of the plant has been calculated and derived and assumed as
described in Technical viability chapter.
c. Raw Material consumption –
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 86
MSW collection and usage ratios assumed are as per technical specifications
and sounds reasonable.
d. Power consumption –
Power generation assumed is as per technical specifications and sounds
reasonable.
e. Revenue generation from sale of electricity generation –
As per MSEB basis rate for 2015 is Rs.5.88/- per unit and petition by all MSW
Waste to Energy project developer for escalation of rates. The requested
rates for different states are as follows,
By considering MSEB power purchase rate and present petition rates, KGEPL
has assumed the rate of Rs. 5.88/- per unit on conservative basis.
Observations on financials -
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 87
1. We have assessed the assumptions on theoretical calculations observed that
the turnover projected appears to be achievable. (only if the assumption of
80.00% of plant load, is achieved)
2. Same is the case of expenditure estimation as well.
3. The promoters are ready to infuse capital of Rs. Rs. 868.94Lacs. Bank will
have to ensure infusion of sufficient amount of capital to be brought in by
KGEPL as own contribution and should take on records certificate from
chartered accountant and return of allotment of shares on record.
4. As per standard acceptable guidelines of project appraisal, standard expected
DSCR is 1.33. In the projected financials, average DSCR calculated is 1.78which
is as per the standard norms. The management as well as financing banker will
have to closely monitor the implementation of the project.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 88
4.5 Calculations of DSCR is as under –
DSCR 31/Mar/16 31/Mar/17 31/Mar/18 31/Mar/19 31/Mar/20 31/Mar/21 31/Mar/22 31/Mar/23 31/Mar/24 31/Mar/25
PAT + Dep +
Int 138.42 557.27 586.64 508.58 580.12 570.49 480.70 586.25 583.35 491.02
Interest 54.42 216.77 202.61 187.36 167.75 143.78 117.64 87.14 52.29 17.43
Loan
Repayment 64.55 96.82 129.10 161.37 193.65 193.65 258.20 258.20 258.20
Total
Obligation 54.46 281.32 299.43 316.46 329.12 337.43 311.29 345.34 310.48 275.63
2.54 1.98 1.96 1.61 1.76 1.69 1.54 1.70 1.88 1.78
Original DSCR
Average DSCR 1.78
Min DSCR 1.54
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4.6 The Project IRR calculated is 23.24% which is above the WACC of 8.63%. The
Equity IRR is 34.06% which is considered to be reasonable.
Calculations of IRR is given as annexure in “Financials”
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5. Capability of the R & D Methodology / technology used by
institutions in the proposed company well accepted and tested as
action network. such.
6. Organizational and The Board of Directors of KGEPL is
commercial capability of the well balanced between technocrats,
enterprise finance expert and hard core technical
members.
7. Reasonableness of the Cost of project finalized is reasonable.
proposed cost and financing Total promoters contribution for the
pattern proposed project is Rs. 868.94Lacs as
its margin which is around 35% of the
project cost.
4.9 Conclusion –
The comprehensive scheme would address the long term profitability. It
would also help Company to address and solve the issue of MSW
management and would enable company to effectively address crisis in its
totality and bring liquidity as well to protect the interest of all stakeholder
including the lenders.
Therefore, after detailed financial appraisal, we are of the opinion that the
project of KGEPL is proper for implementation and after its due
implementation; KGEPL would be in a position to recover the position as
stipulated in financials. Thus, it being financially viable proposal may be
accepted by financing bankers as fair banking risk.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 91
CHAPTER – 5
SWOT ANALYSIS
5.1 STRENGTHS
Long existence of parent company in market.
Generated maximum power generation for MSW.
Self-sufficiency in technology and technical processes.
Existence of plant near the vicinity of raw material and it is available free of
cost.
Experienced and balanced management team.
The land lease cost is negligible.
No revenue sharing with corporation.
The produce generated from the project is easily acceptable in market.
5.2 WEAKNESSES
The project is unique one as to its applicability and implementation in India.
Mitigant –
The technology used by company is tested by technology to be modified to
incillary boiler. The said company is confident of successful implementation.
5.3 OPPORTUNITIES
If such project is successfully implemented, it can be replicated all over India
basis in almost all corporations.
5.4 THREATS
Product diversity may create problems in future.
Net energy recovery may suffer in case of wastes with excessive moisture
content and inerts.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 92
CHAPTER – 6
BANKING ASPECTS OF THE PROPOSAL
6. We have relied on the information provided by KGEPL for the total project
costs.
7. Lending banker may keep continuously monitoring of the project and debit
and credit summations.
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8. Plant loan factor considered by KGEPL is 80.00% throughout the years
which is reasonable & achievable. The financing banker needs to take
assurance from the technology provider that given the site condition and
waste characteristic, the plant on an average will be able to operate at
80.00% capacity.
9. The proposed project of MSW has been awarded to RSSPL by KMC. Further
a Joint Venture agreement is signed between RSSPL, KGEPL (SPV) and
Sunilhitech Engineers Ltd. (SHEL) (Parent Company of SHIIPL), by the
virtue of shareholders agreement which RSSPL hold around 12% stake and
SHIIPL along with its subsidiary and/ or Affiliates hold 88% stakes in
KGEPL.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 94
CHAPTER - 7
CONCLUSIONS & RECOMMENDATIONS
Rochem Seperations Systems (India) Pvt. Ltd (RSSIPL) has been awarded a
letter of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for treating the MSW collection from
the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)
basis.
The Concession Agreement was signed between KMC and KGEPL is signed on
7th February 2014. By the virtue of Concession Agreement, KGEPL is setting up
a processing plant with a capacity of 180 TPD for conversion of MSW into
useful product (Power) at Kasaba Bavda village, Tehsil Kolhapur, District,
Kolhapur, Maharashtra on “DBFOT” basis for a period of 30 years. The land
lease Agreement has been signed on June 03, 2014. KGEPL has also received
suitable extension for achieving financial closure from KMC. The completion &
commissioning of plant is expected by January 01, 2016 which is 08 months
from the Start of Construction.
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The Municipal Corporation that is KEM will provide 4 Hectare of land to
KGEPL as per RFP document.
SHEL will be the main EPC contractor to implement the project on turnkey
basis as proposed by KGEPL.
The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is
proposed to be funded in a Debt to Equity ratio of 65:35.Total Owners
Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.
1613.75Lacs for the project would be tied up with Banks/ Financial
Institutions.
KGEPL will be having its own power generation arrangements and therefore
assured revenue generation.
The infrastructure in the form of building and sheds is adequate to support the
projected production.
KGEPL will not face any problem in sourcing the technical and non-technical
manpower.
KGEPL has to ensure that sufficient area is made available for dumping of
processed remnants.
Based on the data provided and observations during the site visit, the project
is considered to be technically feasible.
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 96
The assumptions are realistic on income side and conservative on expenditure
side. Profitability appears to be achievable and realistic.
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