Pre-Feasibility Report - Welcome to...

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Pre-Feasibility Report

For

Upgradation, Modernization and Expansion

Project on Writing and Printing Paper based on

Wood and Agro-Residues

At

Village Saila Khurd, Tehsil Garhshankar, Distt. Hoshairpur

PUNJAB, INDIA

APPLICANT

M/s Kuantum Papers Ltd

Saila Khurd, Tehshil Garhshankar, Distt. Hoshiarpur, PUNJAB-144 529, India

25th August, 2014

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Contents

S. No. Contents Page No.

1 Executive Summary 1

2 Introduction to the Project/Background Information 8

3 Project Description 17

4 Site Analysis 44

5 Planning Brief 47

6 Proposed Infrastructure 48

7 Rehabilitation and Resettlement (R&R) Plan 51

8 Project Schedule & Cost Estimates 51

9 Analysis of Proposal (Final Recommendations) 52

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1. Executive Summary

Kuantum Papers Ltd (Earlier ABC Paper Ltd) was set up in 1980 to manufacture Writing and

Printing Paper. Kuantum Papers Ltd. has its operations at Sailakhurd in Punjab in North India,

adjacent to the main Sate Highway SH-24, and is spread in an area of 257 acres. The plant is a

fully integrated facility to make Paper from Agro and Wood based pulp. Pulping is done from

various kinds of agricultural residues like Straws and Baggasse, and Wood apart from using

purchased hardwood and Soft wood pulp. Current capacity of plant is to produce 148500

tonnes per annum (450 TPD) of Writing and Printing Paper.

In view of the strong fundamentals of the paper business and its growth potential, the

management, in the year 2008-2009, had undertaken a strategy to expand the paper business

and sustain its competitiveness through capacity enhancement and cost reduction initiatives.

The management implemented the Mill Expansion Programme covering setting up of:

Chemical Recovery Plant, Co-Generation Power Plant, Wood Pulp Street, Paper Machine IV,

Waste Paper/Purchased Pulp Pulping Street after obtaining necessary Environmental

Clearance from Ministry of Environment and Forests (MoEF), New Delhi. The above expansion

tripled the capacity of plant from 150 TPD to the existing 450 TPD, and enabled Kuantum to

achieve economies of scale, reduce cost of production, enhance paper quality and employ an

eco-friendly manufacturing process. Presently, Kuantum Papers limited is operating at a

capacity of 300 TPD using both wood and agro-residues due to negative cost implications of

using imported/purchased pulp for additional 150 TPD capacity.

After having established stable operations and having become a large player in the domestic

Paper industry, Kuantum Papers Ltd is currently planning implementation of following

upgradation, modernization and expansion plan to enhance the profitability and improve the

ecological footprint of the company.

Tables 1 and 2 attached below summarize the Up-gradation, Modernization and Expansion

Plan,

Table 1: Expansion Activities

S. No. Particulars Existing Installed Capacity

EC No: J-11011/344/2008-IA-II(I) dated Jan 1, 2009

Proposed Expansion in

Installed Capacity

Total Installed Capacity after Proposed Expansion

1 Paper 450 TPD 0 450 TPD

2 Agro-Pulp 165 TPD 0 165 TPD

3 Hard Wood Pulp 60 TPD 140 TPD 200 TPD

4 Pulper for 20 m3 0 20 m3

2

Waste Paper/ Purchased Wood Pulp

5 Conventional Chemical Recovery Plant

230 T Black Liquor Solids per day for Caustic Soda Recovery, FBR Soda Ash Recovery Plant with capacity of 100 T Black Liquor Solids per day,Lignin Precipitation System (LPS) Plant to recover 25 MT Lignin Per day

350 T Black Liquor Solids per day

580 T Black Liquor Solids per day, Existing FBR Soda Recovery Plant will be kept as stand by plant for planned and unplanned shuts of CRP. LPS Plant will be operated based on marker demand of Lignin.

5 Co-generation Power

17.5 MW 12 MW 28 MW (Existing 1.5 MW Turbine will be abandoned)

6 Effluent Treatment Plant

20000 m3/day 10000 m3/day

30000 m3/day

The main highlights of the expansion activities are:

• The Paper manufacturing capacity of the mill as on date is 450 TPD. This will remain unchanged after the proposed expansion.

• There is no change in the agro-residue pulping capacity. Purchased Pulp is to be replaced with own hard wood pulp. Existing hard wood pulping capacity is 60 TPD. The proposal is to expand the hard wood pulping capacity to 200 TPD.

Table 2. Modernization and Up-gradation:

S.No Particulars Existing Facility EC No: J-11011/344/2008-IA-II(I) Jan 1, 2009

Proposed Upgradation/Modernization

1 Agro-Pulping Street

Continuous Digester Addition of one more continuous digester to debottleneck the existing Continuous digester resulting after up-gradation due to change in pulping from soda process to sulphate process

Convention pulp washing and bleaching system

Addition of Oxygen Delignifcation (ODL) Stage, Modifications in bleaching lines to make the material of construction suitable for partial substitution of elemental chlorine with chlorine dioxide to reduce elemental chlorine usage in agro pulping street. The existing Bleaching sequent XCEopHH will be modified to XC/DEopHH.

2 Hard Wood Pulping Street

3 Nos Stationery Vertical Digesters

Installation of additional three (3) vertical digesters to enhance the bleached pulping capacity to 200 MT /day.

Conventional pulp washing and bleaching.

Addition of Oxygen delignification stage. Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free (ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up

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gradation, the bleaching sequence will be ODL followed by ED0EopD1.


17.5 MW ( 10MW, 5 MW, 1.5 MW, 1 MW) 3 Boilers (2 Nos 26 TPH & 1No 60 TPH)

Installation of 12 MW new turbine. The operation of 1.5 MW turbine will be discontinued. With the installation of new 12 MW turbine, the total Co-generation power capacity will be 28 MW. One power Boiler with capacity of 80 TPH will be added.

4 Chemical Recovery Plant

Chemical Recovery Plant : 230 MT Black Liquor Solids/day Capacity: For recovery of ca ustic soda (White Liquor) Solids and recovery of Soda: 100 MT BL Solids: For recovery of Soda Ash; Lignin Precipitation System for recovery of 25 MT Lignin per day from 140 MT Black Liquor Solids/day

One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed. Existing Fluidized Bed Reactor, presently being operated to process 100 MT Black Liquor solid will be discontinued and will retained as Standby equipment. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. Existing Recovery Boiler will be modified to make it suitable for black liquor generated from sulphate process Lignin Precipitation System (LPS) will be operated only to meet the market demand of lignin for specialized application. The filtrate(Sodium Sulphate) of Lignin Precipitation System (LPS) will be used as make up chemical in Chemical Recovery plant.

The main highlights of the upgradation and modernization plan are:

• Addition of Oxygen Delignification (ODL) stage in the existing agro-pulping Street. Modification in the agro street bleach plant to upgrade the bleaching sequence from existing XCEopHH to XC/DEopHH for substitution of elemental chlorine with chlorine dioxide.

• Elemental chlorine free (ECF) wood pulping street. The existing bleaching sequence is XCEopHH. After up gradation, the bleaching sequence will be ODL followed by ED0EopD1. Existing 60 TPD wood street will be utilized to debottleneck agro-pulping washing street.

• One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed enabling the mill to process entire black liquor in conventional Chemical Recovery Plant. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. FBR Soda Ash Recovery Plant will be kept as a stand by plant.

The total estimated project cost of the project is Rs 337 Crores. More than 45% of this estimate will be

spend towards implementation of Environmental Management Plan. The following Table 3

summarizes the project estimates under different heads.

Table 3: Estimated Project Cost

S.No Particulars Details Estimated Cost (INR Crores)

% age of Total Estimated Cost

1 Capacity Expansion and Wood Pulp mill, 116.82 34.65%

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Upgradation/Modernization

Upgradation of Agro-Pulp Mill

2 Co-generation Power Plant

12 MW Turbine, 80TPH Power Boiler

62.24 18.46%

3 Environmental Management

New Chemical Recovery Plant, Oxygen Delignification, Chlorine Dioxide plant, Upgradation of Effluent Treatment Plant, Odour Control System, Lime Kiln etc.

158.00 46.87%

Total 337.06 100%

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The following is the summary of the various environmental safeguards planned under the proposed expansion, up-gradation and modernization plan.

S.

No

Particulars Prescribed limits/

Requirement

Existing Status Proposed Safeguard/Management after Expansion

1. Water

Consumption/T

on of Paper

Not specified 70-72 After proposed expansion, the water consumption is expected

to come down to 65 m3/ton of paper due to upgradation of

equipment and modernization of the process.

2. Waste water

discharge /ton

of Paper

100 55 Recycling of treated effluent to low value application where

colour is not a limiting factor.

3 Treated

Effluent

Parameters

COD: 350 ppm; BOD:

30 ppm ; TSS: 50

ppm; pH: 6.5-8.5 ;

SAR: 26

COD < 250 ppm; BOD < 28 ppm; TSS

< 50 ppm; pH 7.0-7.5; SAR < 10

Capacity of the ETP will be updraded from existing 20000

m3/day to 30000 m3/day to treat additional volume of effluent

and maintain the parameters within prescribed limits.

4 AOX Less than 1 Kg/ton

of Paper

< 1 Kg/ton of Paper Will be maintained within prescribed limits. ODL and partial

substitution of elemental chlorine with chlorine dioxide

proposed in the existing bleaching sequence for agro-pulping

street. ODL and ECF process proposed for wood pulping street.

5 Installation of

Lime Kiln

Required Lime Kiln Capacity required for

existing pulping capacity is 80 MT

(BD) Lime sludge for recovery of 45

MT CaO . The company has

installed Lime kiln with capacity of

The capacity of the Lime Kiln will be upgraded to meet the

requirement after expansion.

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140 MT (BD) Lime sludge to recover

80 MT CaO.

6 Green Belt 33% of total area 42% of total area 45% of the total area will be covered under green belt.

7. Stack Emissions < 100 mg/Nm3 < 100 mg/Nm3 ESPs will be installed in the proposed Boilers to meet the

existing norms.

8 Odour Control

System

For mills using

sulphur compounds

Not applicable as mill is not using

sulphate process

Odour control system will be installed under proposed

expansion.

9 Solid Waste

(ETP Sludge)

Disposal as per

Hazardous Waste

Rules

Total Quantity Generated is around

12 MT per day. Being sold to Board

Manufacturers. Board Mill for

producing 15 MT Board have also

been installed.

Total Quantity Generation will be around 20 MT after proposed

Expansion. Board Manufacturing within premises and sale to

board manufactures will be used as mode of disposal.

10 Boiler Ash Coal ash is given to cement

manufacturers. Husk ash is being

used for brick manufacturing and

filling of low lying area as per CPCB

Guidelines.

Coal ash will be given to cement manufacturers. Capacity to

manufacture bricks will be increased apart from land filling

within premises as per CPCB guidelines.

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The installation of additional chemicals recovery apart from Environmental Management will generate

around Rs 40 Crores/annum. The added co-generation power capacity will result in an annual cost

reduction of Rs 30 Crores towards the power and steam costs. Enhancing the wood pulp production

from 60 TPD to 200 TPD will be a prudent idea to curtail the manufacturing costs apart from making

the wood street viable for Oxygen Delignification (ODL) Elemental Chlorine Free (ECF) Bleaching,

Conventional Chemical Recovery Plant (CRP), which at the present capacity are not techno-

economically viable. The added chemical pulping capacity of 140 TPD will fetch additional annual

contribution to the tune of Rs 40 Crores..

The objective of the proposed proposal is therefore not the production capacity expansion but

balancing the existing facilities by expansion in the wood pulping street, Co-generation Power

Capacity to make the Convention Chemical Recovery Plant (CRP), Oxygen Delignification (ODL) and

Elemental Chlorine Free Bleaching (ECF) Sequence feasible for wood street which otherwise is not

technically feasible at 60 TPD capacity. The technologically being proposed is far superior from

environmental point of view in comparison to existing technology in the wood pulping street. The

proposed project is also aimed to further reduce the environmental impact of existing agro-street by

implementation of Oxygen Delignification (ODL) and Partial substitution of chlorine with chlorine

dioxide. Apart from giving direct and indirect employment to local people, improving the social and

infrastructural status of the area around the mill, it will reduce the dependence of the mill on

imported hard wood pulp thus limiting the outflow of the cash from the country.

The Regional Director, MOEF, Chandigarh has been monitoring the compliance of the conditions of

previous Environmental Clearance (No. J-11011/344/2008-IA-II (I) dated 1/1/2009). In this regard, a

compliance report has been also issued by the Regional Office of the Ministry vide Letter No. 5-

169/2009-RO (NZ)/6113 dated 25/7/2014 confirming compliance by the proponent company.

The implementation of the above, on one side will improve the profitability of the Company while on

the other side, will drastically reduce the impact on the environment. Therefore, Kuantum Paper Ltd’s

proposal is both environmentally and economically positive project.

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2. Introduction to the Project/Background Information

2.1. Identification of the Project and Project Proponent

Kuantum Papers Ltd (Earlier ABC Paper Ltd) was set up in 1980 to manufacture Writing and

Printing Paper. Kuantum Papers Ltd. has its operations at Sailakhurd in Punjab in North India,

adjacent to the main State Highway SH-24, and is spread in an area of 257 acres. The plant is a

fully integrated facility to make Paper from Agro and Wood based pulp. Pulping is done from

various kinds of agricultural residues like Straws and Baggasse, and Wood apart from using

purchased hardwood and Soft wood pulp. Current capacity of plant is to produce 148500

tonnes per annum (450 TPD) of Writing and Printing Paper.

In view of the strong fundamentals of the paper business and its growth potential, the

management, in the year 2008-2009, had undertaken a strategy to expand the paper business

and sustain its competitiveness through capacity enhancement and cost reduction initiatives.

The management implemented the Mill Expansion Programme covering setting up of:

Chemical Recovery Plant, Co-Generation Power Plant, Wood Pulp Street, Paper Machine IV,

Waste Paper/Purchased Pulp Pulping Street after obtaining necessary Environmental

Clearance from Ministry of Environment and Forests (MoEF), New Delhi.

The above expansion tripled the capacity of plant from 150 TPD to the existing 450 TPD, and

enabled Kuantum to achieve economies of scale, reduce cost of production, enhance paper

quality and employ an eco-friendly manufacturing process. This has propelled Kuantum to

become one of the lowest cost paper-producer in its segment. Presently, Kuantum Papers

limited is operating at a capacity of 300 TPD using both wood and agro-residues due to

negative cost implications of using imported/purchased pulp for additional 150 TPD capacity.

Kuantum primarily produces Writing and Printing Paper, Creamwove paper ranging from 49

Grams Per Square Meter (GSM) to 140 Grams Per Square Meter and SS Maplitho paper in the

range of 60 Grams Per Square Meter to 130 Grams Per Square Meter. The company has

created strong brands and differentiates its products based on quality. Some of the brands

are K-Gold, Kappa G and Krest for Writing and Printing Paper, Kroma for Colour Printing

Paper, and Keon for Copier paper.

After having established stable operations and having become a large player in the domestic

Paper industry, Kuantum is currently planning implementation of following major projects to

enhance the profitability and improve the ecological footprint of the company.

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• Expansion of the wood pulping street from existing 60 MT to 200 MT/day to make the

capacity compatible and feasible for implementation of Elemental Chlorine Free (ECF)

Process. The existing bleaching sequence in the wood street is XCEopHH. After Expansion,

the bleaching sequence will be Oxygen Delignification followed by XD0EopD1.

This expansion will eliminate the need of using purchased pulp to the tune of around 140

TPD for operating the plant economically at its full capacity. Out of 450 TPD Installed

capacity, presently, the mill has the capacity to produce ii) 300 TPD paper with wood and

agro pulp supplemented with imported hardwood & softwood pulp and fillers ii) 150 TPD

paper with purchased pulp/fibre supplemented with fillers.

• Upgradation and modernization of existing agro pulping street by implementing Oxygen

Delignification and Partial Substitution of Elemental Chlorine with Chlorine Dioxide to

further reduce chlorine consumption in agro-pulping street. The present bleaching

sequence in agro street is XCEopHH. After upgradation and modernization the bleaching

sequence will be XC/DEopHH.

• Installation of Conventional Chemical Recovery Plant (CRP) with capacity of 350 MT Black

Liquor solids/day. This will be in addition to existing conventional Chemical Recovery Plant

(CRP) of 230 MT Black Liquor solids /day.

• Expansion of Power Co-generation capacity from existing 17.5 MW to 28 MW by

installation of 80TPH Power Boiler and 12 MW turbine. The existing 1.5 MW turbine will be

abandoned.

• The above major projects will also be complemented with supporting projects namely

Lime kiln Plant, up-gradation of Effluent Treatment Plant and any other miscellaneous

addition/upgradation to meet the guidelines of Corporate Responsibility for Environment

Protection (CREP) issued by Ministry of Environment and Forests.

2.2. Brief Description of nature of the project

The proposed project is meant for upgradation, modernization and expansion of existing facilities

to operate the mill more economically and more environmental friendly. There will be no change

in the paper manufacturing capacity of the plant with implementation of the proposed project.

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The proposed project falls under “Category A” as per EIA Notification dated 14th September, 2013

and amendment dated 1st December, 2009.

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

India accounts for 15% of the world population but consumes only 3% of the global paper

production. At a per capita consumption of 9kgs per annum, it is extremely low, compared to

the world average of around 55kgs per annum.

The total paper production capacity in India is currently at 12 million tonnes per annum. Each

increase of 1kg per capita translates into an additional capacity requirement of 1 million tonne

per annum, which depicts a phenomenal opportunity.

The paper market in India is segmented as follows:

Growth in education, increase in corporate spending on stationery will drive demand for

Writing and Printing paper in the coming years. Boosted by the Government’s thrust on

education and literacy, rise in organized retail, urbanization and growth in the economy and

demand for better quality paper, the Writing and Printing paper segment is poised to grow at

Compounded Annual Growth Rate of 6.5% per annum over the next 5 years.

Opportunity – India consumes 3% of world paper while it has 15% of the world population

Indian Paper Industry poised to grow at CAGR of 6.5%+ in the current decade

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E: Estimated; P: Projected Source: CRISIL

The above figures encourage the existing mills to improve the ecological footprints while

growing to compete in the growing paper market.

2.4. Demand Supply Gap

India’s paper industry is expected to grow at 6 to 7 percent year over year, with the packaging

industry poised to grow at 22 to 25 percent annually. Advances in education, a fast-growing middle

class, strong growth in sectors like fast-moving consumer goods (FMCG)—pharmaceuticals,

liquor, cosmetics, and the like—and organized retailing are the main drivers of demand for paper

and packaging products.

Per capita consumption of paper in India remains woefully low at 9.9 kgs (See Figure 1), compared

to 349 kg in the United States and 164 kgs in the European Union in 2010. Per capita consumption

of paper has almost doubled in the last decade. India has 15 percent of the world's population, but

consumes less than 3 percent of the world’s paper.

The upstream market demand for paper products, such as tissue paper, tea bags, filter paper,

lightweight online coated paper, medical-grade coated paper, etc., is growing as well. These

developments are expected to give a significant boost to the growth of the industry.

Kuantum’s vision is to control 5% of market share by 2025

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Meeting the growing demand will likely require a correspondingly significant investment in both

new machines and upgrading of existing facilities. Currently, a small percentage of the demand is

being met by imports due to the inability to produce certain segments profitably in India. India

also allows 100 percent foreign direct investment (FDI) in this sector, making it an attractive

landscape for foreign investment — one of the keys to growing the paper industry.

For writing paper, elasticity of consumption has been taken at 0.9. Taking the GDP growth at 9%

during 2012-17 and beyond, the growth of demand for writing paper has been assumed at 8.1% per

annum. With the growing demand in educational sector, elasticity of consumption of writing

paper could be higher than one. However, despite a lower per capita consumption relative to

other countries, increasing access to internet and substitution of writing/printing material by

electronic mode, elasticity of consumption has been taken at 0.9

2.5. Imports vs Indigenous Production

Several economic factors and lifestyle changes are driving the growth of paper consumption in

India. The government has increased focus on education and initiated several central and state-

level programs such as Sarva Siksha Abhiyan (Education for All) and Operation Blackboard. This

has had a positive effect on India’s literacy rate, which has increased by 9.2 percent in the last

decade to reach approximately 74 percent in 2011. The result has been increased expenditure on

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textbooks and notebooks, providing a good opportunity for paper companies. Additionally, with

higher literacy levels, circulation of other print media, such as newspapers, has also increased.

Increased corporate activity and lifestyle changes: Economic development and globalization have

led to an increase in corporate activity and increased per-capita consumption of paper. At the

same time, increased commercial activity has spurred demand for packaged goods. Lifestyle

changes have also pushed up the demand for specialty paper, such as tissue papers.

India is the second largest print market in the world, with a readership base of over 250 million.

There are approximately 130,000 printing presses in India. The printing and packaging industry is

growing at a compound annual growth rate of over 16.2 percent since 1989.

Overall paper consumption in the baseline scenario is projected to increase to 16.5 million tons in

2016-17 and reach 25.3 million tons in 2026-27. In the alternative scenario, which appears to be

more realistic, the consumption increases to 18.4 million tons in 2016-17 (the terminal year of the

12th Plan) and to 43.9 million tons in 2026-27.

Projected Consumption of Paper (Million Tons)

Year Writing Paper Packaging

Paper News Print

Total

Consumption

Baseline

Scenario

2010-11 4 5.4 1.7 11.2 11.2

2011-12 4.3 5.9 1.8 12 12.1

2012-13 4.6 6.4 1.9 13 13

2013-14 5 7.1 2.1 14.2 13.8

2014-15 5.4 7.8 2.2 15.4 14.7

2015-16 5.8 8.6 2.4 16.8 15.6

2016-17 6.3 9.4 2.6 18.4 16.5

2021-22 9.3 15.2 3.9 28.4 21.8

2024-25 11.8 20.2 4.9 36.9 23.5

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2026-27 13.8 24.5 5.7 43.9 25.3

The estimates for production during the 12th Five Year Plan (2012-17) and in the next 15 years

have also been derived for both the alternate scenarios. Estimates of production of various

paper grades based on wood, agro residues & recycled paper have also been projected.

Projected Production of Paper (Million Tons)

Year Wood

Resources

Agro Based

Resources

Recycled

Paper

Total

Production

Baseline

Productions

2010-11 3.2 2.2 4.7 10.1 10.1

2011-12 3.4 2.3 5.1 10.9 10.9

2012-13 3.7 2.5 5.7 11.8 11.7

2013-14 4 2.7 6.2 12.9 12.5

2014-15 4.3 2.9 6.8 14.1 13.3

2015-16 4.6 3.2 7.5 15.3 14.1

2016-17 5 3.4 8.3 16.7 14.8

2022-23 8 5.4 14.7 28 19.6

2024-25 9.3 6.3 17.8 33.4 22

2026-27 10.8 7.4 21.5 39.7 23.5

2.6. Export Possibility

Exports of paper and paper products from India have not grown over the last three to four years

in spite of steady increase in domestic production. This is primarily due to increasing domestic

demand and low quality of finished product, making the products unsuitable for export to the

developed markets.

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Currently, exports form a very small proportion of paper production in India (2.1 percent) and are

much lower than imports. Major export destinations today are markets in the Middle East, Africa,

and South Asia. The top three countries by value of exports are Nigeria, Sri Lanka, and the United

Arab Emirates. These countries import paper, paperboard, and printed material. However, exports

to developed markets in Europe and North America are restricted to books and printed material

only.

With further increase in production capacity in India, there is scope for increased exports to the

traditional export markets. In addition, by improving quality through better machinery, processes,

and raw materials, there is further scope for exports of high-value-added paper products to

quality-sensitive markets in Europe and North America.

To address the concerns around labour and the challenging process of getting approvals in India,

the government has recently approved a National Manufacturing Policy (NMP) that aims to

increase the manufacturing sector’s share in the economy to 25 percent from 16 percent and

create 220 million jobs by 2025. The policy will promote this by facilitating national manufacturing

investment zones, which can offer faster clearances. The policy also aims to ease the process for

exiting the zones, along with providing companies flexibility while hiring and laying off. The NMP

is expected to boost foreign investment; however, it is too early to predict the effect on paper

industry. It will likely be dependent on the location of the new NMP zones, as paper industries

require easy access to raw materials, coal, water, and other resources.

2.7. Domestic/Export Markets

The paper produced by Kuantum is typically used in the manufacture of notebooks,

textbooks, publications, computer stationery, invoices, pamphlets, newspaper supplements,

diaries and calendars. Some of the stationery items made using Kuantum products are also

exported. Kuantum has an elaborate marketing network throughout India, selling through its

network of 85 distributors.

Kuantum’s Product Segmentation Kuantum’s Region-wise Market

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42.3

28.6

12.16.1

5.25.7

Sales Value %

KAPPA G K Gold KREST

41.3

22.0

20.9

11.80.63.4

Sales Value %

North Central West

2.8. Employment Generation (Direct and Indirect) due to the project

The proposed project is expected to give direct employment to around 300 persons in Kuantum

Papers Ltd. The projected head count on account of proposed Expansion cum Modernization/Up-

gradation Plan is depicted in the following Table.

S.No. Department Staff Worker Temp Worker Total

1 Pulp Mill 7 25 19 51

2 Elect Engg 4 18 0 22

3 Mech Engg-Pulp Mill 4 0 0 4

4 Mech Engg-CRP 4 10 17 31

5 Mech Engg -Others 6 7 4 17

6 Instrumentation 2 9 0 11

7 Utility 6 20 23 49

8 R&D and ETP 10 0 8 18

9 Chemical Recovery 9 15 13 37

10 Lime Kiln 0 8 9 17

11 PG Plant 0 8 21 29

52 120 114 286

Projected Head Count

Total

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Apart from direct employment to above skilled and un-skilled manpower, the proposed expansion

is expected to give indirect employment to many more people due to increased inflow of raw

materials and other inputs to the mill.

3.0. Project Description

3.1. Type of Project including interlinked and independent projects, if any

This is an up-gradation, modernization and expansion project with respect to existing facilities aimed

at improving the efficiency, profitability and ecological footprint without increase in the installed

capacity of the end product.

There are no interlinked projects related to this project.

3.2. Location

The proposed project is to be implemented at the existing factory premises of the Kuantum Papers

Ltd situated at Village Saila Khurd, Tehsil Garhshankar, Distt. Hoshiarpur, Punjab . Details pertaining to

geographical location, climate, demographic features, socio-economic aspects etc are summarized as

under:

Particulars Details

Geographic Location of the Mill Bewteen Latitude: 30o 9’ N & 32o 5’ N & Longitude: 75o 32’E

& 76o 12’E; Distance from State Capital Chandigarh: 100 km

Nearest Railway Station Saila Khurd Railway Station (approx. 1.0 km in South

direction); Phagwara Railway Station (approx. 30 km in SW

direction)

Nearest National Highway Well connected to Chandigarh, Pathankot, Jallandhar by

road

Nearest Airport Chandigarh, 110 Kms from the Project Site

Physiographic Characteristics Sub mountainous, Situated in Bist Doab of Doaba region of

the state

Water Bodies

Except Bist Doab Canal which gets water from Sutluj river

from time to time, no significant river body exists in 10 km

study area.

Climate Mild Climate, Three Characteristic Seasons: Summer (

April – June), Rainy (July –September), Winter ( October –

March) ; Coldest Month : December & January ; Hottest

Months : May & June ; Humidity : High ; Rainfall : Annual

Avg: 1125 mm (75% July – Sept, 15% Jan- Feb)

Prevalent wind Corridors- NW,NNW,WWN

Land Use & Agriculture Predominant land use pattern: Agriculture

( 60 % of total land mass)

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Main crops : Wheat

Industrial Use - Very nominal

Forests – 30%

Major plants :Kinnow, Mango, Peach Litchi Pear, Guava

Irrigation facility : Canals & tube wells

Industry Medium scale : 33, Small scale : 9109

Demographic Features • Total Population: 290771

• Sex Ratio: Male : 150548 & Female: 140223

• Popular language: Punjabi & Hindi

• Principal Staple Food: Wheat , Rice & Pulses

Amenities • Primary source of Drinking Water: Dug wells & Tube

Wells

• Medical facilities: Hospital at Sailakhurd ,

• Private Practitioners at Sailakhurd

• Schools & Colleges: Available

• Post Office: Available

• Telephone facility Available

Occupation • Major Occupation: Cultivators or agricultural laborers

(36.3 %)

Places of Historical & Tourist

Importance

Nil (within 15km )

The city & town area of Hoshiarpur District in which Kuantum Papers Ltd is located are indicated in Fig

1.1. The location map indicating road network is depicted in Fig 1.2.

19

Fig 1.1 City &Town Area of Hoshiarpur District

20

Fig 1.2. Location of Kuantum Papers Ltd

21

3.3. Details of the Alternate Site considered and the basis of selecting the proposed site,

particularly the environmental considerations gone into should be highlighted.

This is an expansion, upgradation and modernization of the existing pulp and paper manufacturing

facility and hence no alternate site have been taken into consideration.

3.4. Size or Magnitude of operation

Kuantum Papers Ltd is proposing the following:

1. Expansion of the wood pulping street from existing 60 MT to 200 MT/day to make the

capacity compatible and feasible for implementation of Elemental Chlorine Free (ECF)

Process. The existing bleaching sequence in the wood street is XCEopHH. After Expansion,

the bleaching sequence will be Oxygen Delignification followed by XD0EopD1.

2. Upgradation and modernization of existing agro pulping street by implementing Oxygen

Delignification and Partial Substitution of Elemental Chlorine with Chlorine Dioxide to

further reduce chlorine consumption in agro-pulping street. The present bleaching

sequence in agro street is XCEopHH. After upgradation and modernization the bleaching

sequence will be XC/DEopHH.

3. Conventional Chemical Recovery Plant (CRP) with capacity of 350 MT Black Liquor

solids/day. This will be in addition to existing conventional Chemical Recovery Plant (CRP)

of 230 MT Black Liquor solids /day.

4. Expansion of Power Co-generation capacity from existing 17.5 MW to 28 MW by

installation of a 80TPH Power Boiler and turbine.

5. The above major projects will also be complemented with supporting projects namely

Lime kiln Plant, Producer Gas Plant, Utilities, Up-gradation of Effluent Treatment Plant and

any other miscellaneous addition/upgradation to meet the guidelines of Corporate

Responsibility for Environment Protection (CREP) issued by Ministry of Environment and

Forests.

3.5. Project Description with Process Details

The following tables summarizes the various components of the proposed expansion, up-gradation,

modernization and environmental Management by Kuantum Papers Ltd

22

Table 1: Expansion Activities

S.No. Particulars Existing Installed

Capacity

EC No: J-

11011/344/2008-IA-

II(I) dated Jan 1,

2009

Proposed

Expansion in

Installed

Capacity

Total Installed

Capacity after

Proposed

Expansion

Remarks

1 Paper 450 TPD 0 450 TPD The capacity of

ancillary

equipments such

as boiler (80 TPH),

utilities etc will

also be enhanced

to match the

production

capacities.

2 Agro-Pulp 165 TPD 0 165 TPD

3 Hard Wood Pulp 60 TPD 140 TPD 200 TPD

4 Waste

Paper/Wood

Pulper

20 m3 0 20 m3

5 Co-generation

Power

17.5 MW 12 MW 28 MW

(Existing 1.5

MW Turbine

will be

abandoned)

6 Expansion of ETP 20000 m3/day 10000

m3/day

30000 m3/day

The main highlights of the expansion activities are:

• The Paper manufacturing capacity of the mill as on date is 450 TPD. This will remain

unchanged after the proposed expansion.

• There is no change in the agro-residue pulping capacity.

• There is only change in the furnish. Purchased Pulp is being replaced with own hard wood

pulp. Existing hard wood pulping capacity is 60 TPD. The proposal is to expand the hard

wood pulping capacity to 200 TPD.

• Existing Effluent Treatment Plant will be expanded to take volumetric load @ 30000 m3/day

effluent.

Table 2. Modernization and Up-gradation:

S.No Particulars Existing Facility EC No: J-11011/344/2008-IA-II(I) Jan 1, 2009

Proposed Upgradation/Modernization

23

1 Agro-Pulping Street

Continuous Digester Addition of one more continuous digester to debottleneck the existing Continuous digester resulting after up-gradation due to change in pulping from soda process to sulphate process

Convention pulp washing and bleaching system

Addition of Oxygen Delignifcation (ODL) Stage, Modifications in bleaching lines to make the material of construction suitable for partial substitution of elemental chlorine with chlorine dioxide to reduce elemental chlorine usage in agro pulping street. The existing Bleaching sequent XCEopHH will be modified to XC/DEopHH.

2 Hard Wood Pulping Street

3 Nos Stationery Vertical Digesters

Installation of additional three (3) vertical digesters to enhance the bleached pulping capacity to 200 MT /day.

Conventional pulp washing and bleaching.

Addition of Oxygen delignification stage. Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free (ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up gradation, the bleaching sequence will be ODL followed by ED0EopD1.


17.5 MW ( 10MW, 5 MW, 1.5 MW, 1 MW) 3 Boilers (2 Nos 26 TPH & 1No 60 TPH)

Installation of 12 MW new turbine. The operation of 1.5 MW turbine will be discontinued. With the installation of new 12 MW turbine, the total Co-generation power capacity will be 28 MW. One power Boiler with capacity of 80 TPH will be added.

4 Chemical Recovery Plant

Chemical Recovery Plant : 230 MT Black Liquor Solids/day Capacity: For recovery of ca ustic soda (White Liquor) Solids and recovery of Soda: 100 MT BL Solids: For recovery of Soda Ash; Lignin Precipitation System for recovery of 25 MT Lignin per day from 140 MT Black Liquor Solids/day

One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed. Existing Fluidized Bed Reactor, presently being operated to process 100 MT Black Liquor solid will be discontinued and will retained as Standby equipment. Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity conventional chemical recovery plant will be operated after expansion to regenerate white liquor. Existing Recovery Boiler will be modified to make it suitable for black liquor generated from sulphate process Lignin Precipitation System (LPS) will be operated only to meet the market demand of lignin for specialized application. The filtrate(Sodium Sulphate) of Lignin Precipitation System (LPS) will be used as make up chemical in Chemical Recovery plant.

The main highlights of the up-gradation and Modernization activities are:

• Addition of one more continuous digester (80 TPD) in the Agro-pulping street to

debottleneck the existing continuous digester resulting after up-gradation due o change in

pulping from soda process to sulphate process.

24

• Addition of Oxygen Delignification (ODL) stage in the existing agro-pulping Street.

Modification in the agro street bleach plant to upgrade the bleaching sequence from existing

XCEopHH to XC/DEopHH for substitution of elemental chlorine with chlorine dioxide.

• Installation of additional three (3) vertical digesters to enhance the bleached pulping

capacity to 200 MT /day

• Addition of Oxygen delignification stage.

• Enhancement of washing and bleaching capacity to produce 200 MT elemental chlorine free

(ECF) wood pulp per day. The existing bleaching sequence is XCEopHH. After up gradation,

the bleaching sequence will be ODL followed by ED0EopD1. Existing 60 TPD wood street will

be utilized to debottleneck agro-pulping washing street.

• Installation of 12 MW new turbine. The operation of 1.5 MW turbine will be discontinued.

With the installation of new 12 MW turbine, the total Co-generation power capacity will be

28 MW.

• One power Boiler with capacity of 80 TPH will be added.

• One more Chemical Recovery plant with 350 MT Black Solids/day Capacity will be installed.

Existing 230 MT/day capacity conventional CRP and proposed new 350 MT /day capacity

conventional chemical recovery plant will be operated after expansion to regenerate white

liquor.

• Existing 230 TPD Recovery Boiler will be modified to make it suitable for black liquor

generated from sulphate process by addition of reduction zone.

• Existing Fluidized Bed Reactor, presently being operated to process 100 MT Black Liquor

solid will be discontinued and will retained as Standby equipment.

• Lignin Precipitation System (LPS) will be operated only to meet the market demand of lignin

for specialized applications. The filtrate (chemically Sodium Sulphate) of Lignin Precipitation

System (LPS) will be used as make up chemical in Chemical Recovery plant.

• Electrostatic Precipitators (ESPs) will be installed in all the boilers as APCD.

25

• Any other requirement specified by Ministry of Environment and Forests (MoEF) during

Environmental Clearance, if any and also to meet guidelines of Corporate Responsibility for

Environment Protection (CREP) will be a part of proposed up-gradation.

A brief description of Paper Manufacturing Process involved presently at Kuantum Papers Ltd from

raw material preparation to finished product including ancillary processes as well as the proposed

expansion being planned by the mill is as under :

Paper is made from cellulosic fibres and so virtually any tree, plant or lignocellulosic material can be a

source of paper making fibres. However, since the strength properties & performance of the paper

in writing & printing are the criteria for acceptance in end use application, only selected raw materials

are used commercially for paper making. Various Soft wood, hard wood, agro-fibres are used in paper

making separately or in combination depending on the properties desired in the end product.

Lignocellulosic raw materials are composed of cellulose, hemicellulose and lignin part from

extractives. The components which need to be removed to convert lignocellulosic raw material into

pulp is lignin. However, other components viz extractives, a significant part of hemicellulose and a

little cellulose is also lost during various stages of the pulp and paper making process.

Kuantum Papers Ltd uses bagasse, wheat straw, sarkanda, kahi grass, bamboo, Eucalyptus, Poplar,

veneer Chips etc alongwith purchased hardwood and Soft wood pulp as raw material for paper

manufacture. Coal, Rice husk & raw material dust is used as fuel in power boiler for the power and

steam. Besides this there are several other raw materials like caustic soda, Oxygen, bleaching

chemicals, fillers, paper chemicals and other functional chemicals such as cooking aids, defoamers,

coagulants etc used for various purposes.

After implementation of the proposed project, the additional chemicals required for manufacturing

process include oxygen, Sodium sulphate, chlorine dioxide etc .

The major steps involved in Pulp and Paper making include Raw material preparation,

Cooking/Pulping, Pulp screening, Pulp washing, Pulp bleaching and Paper making. Various ancillary

processes are also involved in pulp and paper manufacturing such as Chemical Recovery Process,

Utilities, Effluent Treatment and Emission Control Processes.

Different processes are used for preparation for raw material depending on the type of raw material

used, to make it compatible with subsequent process steps. Chipping and dedusting are the steps

performed for woody raw materials by Kuantum Papers Ltd whereas agro-fibres are subjected to

26

shredding, dry dedusting and wet washing to remove sand, dust and other contaminants of no

interest in papermaking. The organic dust and dust recovered during raw material preparation is

utilized as fuel in the multifuel boilers

The cooking or pulping process is aimed at removal of lignin and extractive from the raw material

while retaining most of cellulose and a part of hemicellulose as well which plays a critical role in fibre

to fibre bonding during paper making process. Different pulping processes are used depending on the

source of fibre used. Kraft/Sulphate pulping (Sodium hydroxide and Sodium Sulphide) is preferred for

hard woods and soft woods whereas alkaline pulping (Sodium hydroxide) is most common for agro-

fibres. However, presently, Kuantum Papers Ltd is using alkaline process for pulping of both agro-

residues and woody raw materials During pulping, the raw material is mixed with cooking chemicals in

digesters ( Vertical Digesters for wood pulping and Horizontal Continuous Digester for Agro-residues)

and subjected to heating at a particular temperature & pressure for a specified time thereby leading

to disintegration into fibrous mass or pulp better known as brown stock. The degree of delignification

is the parameter for controlling and monitoring of this step which is expressed as Kappa Number. The

Kappa Number of the pulp is the direct indication of the amount of residual lignin in the cooked pulp.

Cooked pulp also contains uncooked fibre bundles and knots, which are removed using different

types of screening systems and recycled back as a fuel and/or raw material. Cooked pulp or brown

stock also contains cooking chemicals and dissolved lignin which are separated from the fibres by a

process called brown stock washing. Brown stock washing is performed in a series of steps by

counter-current washing using brown stock washers or other equipments such as wash presses. The

lignin and chemicals are separated as a liquid stream known as Black Liquor leaving behind pulp mass

called as unbleached pulp. The black Liquor is separately processed for recovery of energy and

chemical in a Chemical Recovery Process.

The unbleached pulp recovered from washing is still brown and is suitable only for unbleached grades

of paper such as packaging grades. For making this pulp suitable for white and coloured paper,

bleaching is required to remove complete removal of residual lignin. This is performed in various

stages starting with Oxygen delignification (ODL) (wherever installed) followed by bleaching. During

oxygen delignification, the pulp is treated with molecular oxygen under alkaline conditions. The

delignified pulp is washed to recover the lignin rich effluent called black liquor which is utilized in

chemical recover process to regenerate chemicals and steam. The oxygen delignification facilitates

removal of lignin from the pulp to the tune of 30%. Oxygen delignification significantly reduced the

27

water pollution load i.e COD. BOD and AOX since all dissolved lignin is recovered and used in chemical

Recovery process rather than discharging as effluent.

Presently, Oxygen Delignification (ODL) stage is not a part of washing/bleaching sequence at

Kuantum Papers Ltd. However, in the proposed upgradation, Kuantum Papers Ltd has proposed to

implement Oxygen Delignification (ODL) Stage as a part of its Environmental Management Plan in

both agro-residues and wood streets.

The oxygen delignified pulp/Washed Pulp (where ODL is not Installed) is further bleached in several

stages involving use of various combination of chemicals viz Chlorine, Chlorine dioxide, Sodium

Hypochlorite, Hydrogen Peroxide, Ozone etc. Modern bleaching sequences do not make use of

elemental chlorine and are therefore Elemental Chlorine Free (ECF). ECF Plants make use of chlorine

dioxide which is more eco-friendly on one hand due to significant reduction in chlorinated toxic

compounds in the effluent while preserving pulp strength on the other end. Total Chlorine Free (TCF)

bleaching sequences do not make use of any chlorine compounds .

Presently, Kuantum Papers Ltd is following XCEopHH sequence in both agro-residues and wood street

for bleaching of pulp.

However, the company has proposed to implement the following bleaching sequences as a part of

its upgradation and Environmental Management plan:

i) Wood Street: ECF Bleaching Sequence i.e XD0EopD1

ii) Agro-residues Street: XC/DEopHH, for substitution of chlorine with chlorine dioxide.

The bleached pulp is prepared for paper machine section by refining to the desired level for

fibrillation to improve the bonding of fibres in paper machine followed screening and addition of

fillers & various performance chemicals. This process is commonly known as stock preparation in

paper industry. Water is added to the pulp to dilute it to less than 1% slurry which is further cleaned in

centri-cleaners. The dilute pulp stock is fed into the “wet end” of the paper forming machine. During

paper making, the dilute pulp slurry passes through the head box where fibre slurry is distributed

uniformly across the width onto wire mesh. The water is removed in the wire section and the fibres

start spreading and consolidating into a thin mat. This whole process is known as sheet formation. The

wet sheet of the paper is carried into the press section where more water is removed by pressure

rollers. The paper passes over steam heated dryer cylinders and the drying takes place. Coating and

28

other surface treatments are also given to the speciality papers. The calendaring is performed to make

the paper smooth and finally paper is wound on the roll. The roll is further rewound, cut into smaller

reels in slitter, sheeted, finished and packed.

The process flow charts of the agro-residues and wood street after proposed expansion and up-

gradation are attached as under:

29

Raw Material ( Yard Area)

Depither

Wet Washing System

Continue Digester

Blow Tank

Knotter Screens/ Cleaners

Brown Stock Washer 1 Seal tank




Unbleached Storage Tower

Pressure Screens

Decker washer (Pre ODL)

O2 reactor ( 1 No)

O2 Blow tank

Post ODL Washers ( 2 Nos)

D / Cl2 Tower

D / Cl2 Washer

Eop Tower

Eop Washer

H1 Tower

H1 washer

H2 Tower

H2 Washer

HD Storage Tank

Black Liquor to

Recovery Plant

PROCESS FLOW OF UPGRADED PULP MILL (AGRO STREET)

Hot Water

30

Raw Material ( Yard Area)

Chipper

Chip screens

Vertical Digesters

Blow Tank

Knotter Screens




Unbleached Storge Tower

Pressure Screens

Centi Cleaners

Decker Washer

ODL Reactors ( 2 Nos)

Post ODL Washer ( 2 Nos)

D0 Tower

D0 Washer

Eop Tower

Eop Washer

D1 Tower

D1 Washer

HD Storage Tower

PROCESS FLOW DIAGRAM OF PROPOSED PULP MILL( WOOD STREET)

Black Liquor to

Recovery Plant

Hot Water

31

Various ancillary processes are also an integral part of paper manufacturing process.

The effluent from pulp washing known as “Black Liquor” containing dissolved organics and

inorganics is processed in Chemical Recovery Process (CRP).

Kuantum Paper Ltd is following method to process black liquor generated during paper making

process:

Black Liquor from Wood Pulping Street: The black liquor from wood street is processed in Fluidized

Bed Reactor (FBR) by concentrating in the evaporators followed by burning in the reactor. The

product thus obtained on burning in reactor under optimized conditions is called and recovered as

Soda ash granules. Soda ash is sold to Sodium Silicate manufacturers as raw material.

After proposed Expansion of the wood street, the wood black liquor will be processed in the newly

process 350 TPD Conventional Chemical Recovery process for recovery of Caustic Soda (White

Liquor)

Black Liquor from Agro-residues pulping Street: The black liquor from Agro-street is processed in the

convention chemical recovery process (CRP) for recovery of energy and chemicals (Caustic Soda in the

form of White Liquor). Four major steps are involved in chemical recovery process:

The black liquor is generated @ around 10% solids from pulp mill and this needs to be concentrated to

60-65% solids before it could be burnt in the recovery boiler. Therefore, evaporation is carried out

using multiple effect evaporators. The concentrated black liquor is burnt in the recovery boiler

resulting in generation of steam. This steam is passed through turbine for generation of power. The

inorganics are recovered as molten salt i.e smelt which is dissolved in dilute alkali and the resultant

solution thus obtained is called as “Green Liquor”. The green liquor is composed mainly of sodium

carbonate and sodium sulphide. The green liquor is clarified and reacted with Calcium Hydroxide to

regenerated sodium hydroxide which is known as “White Liquor” and this process is called as

“Causticizing”. The white liquor is used in the pulping process. During causticizing reactions, calcium

carbonate is also generated as a by-product in the form of mud known as “lime mud”. The lime mud is

washed and burnt in Lime Kiln to regenerated lime i.e Calcium Oxide which is in turn reused in the

causticizing. The flow chart of the Conventional Chemical Recovery Plant as followed at Kuantum

Papers Ltd. is attached below:

32

Black Liquor from Pulp Mill

Vibro Screen.

EVAPORATOR PLANT

EVAPORATOR PLANT

RECOVERY BOILER

RECAUSTICIZING PLANT

Lime Kiln for MUD

Inlet Concentration 10.5% soldis , Outlet % Solids - 65 %

1A,1B,1C are finishers bodies, Lamella type

Primary Condensate return to power house,

Secondary Condensate Send to pulp mill & Recausticizing plant

Dregs

Dregs Washer

Slaker House

Tertiary Air

LP Steam from power house

Vapour of Finishers body used as a heating source for other effect

65% solids Semi concentrated black liquor stores in 2 nos of

SCBL Storage tanks

6th 5h,4th,3rd& 2nd effect are long tube falling film vertical

Surface CondenserVapour Of 6th effect enter in the surface

35*C Temp.colling Water enters in the Surface

Condenser

FLOW CHART-CHEMICAL RECOVERY PLANT

White Liquor Storage Tank

Green Liquor clarrifier

Green Liquor Storage Tank

SMELT

Causticizer No 2

45*C temperature water returns in the cooling tower

Primary Air

Secondary Air

Lime Mud Storage Tank

LP Steam

LP Steam

Mud Filter

Lime Mud Washer 1

Lime Mud Washer 2

Lime Mud Washer 3

Causticizer No 3

LP Steam

LP Steam Overflow Relay Tank

Weak White Storage Tank MDT Tank

Causticizer No 1

LP Steam Overflow Relay Tank

White Liquor Clarifier

Trolly

Weak Wash LiquorMDT TANK

Lime From table Feeder

Lime Godown

Recausticizing Plant

Rake Classifier

ESP ASH

Dregs

Constant Head Tank

Producer Gas plant

Recovery Boiler ESP Inlet temp 145* C & Outlet temp 125*C

Recovery Furnace, 65% Concentrated black Liquor

burns in the furnace avg Temp of black liquor is 131 *C

Superheated steam

CHI

MNEY

T U R B I N E

Filtrate

Pulp Mill

FLUE GAS

Apart from Fluidized Bed Reactor (FBR) and Conventional Chemical Recovery Plant (CRP). Kuantum

Papers Ltd have also installed a state of the art Lignin Precipitation System (LPS) Plant in

33

collaboration with a Swiss Company viz. Greenvalue S.A under Clean Technology Scheme of Ministry

of Environment and Forests (MoEF) for recovery of high purity Lignin from Black liquor. This is

utilized only to produce lignin for high value application ranging from phenol replacement in resins

to animal health applications depending on the requirement from Greenvalue S.A under 100%

buyback arrangement.

The various utilities involved in the pulp and paper making include Boilers for steam generation,

turbines for power generation, DM water plants, soft water plants, cooling towers, Air compressors,

bore wells etc.

The effluent treatment process at Kuantum Papers Ltd is comprised of clarifiers at various stages of

treatment, bio-methanation for wet wash effluent, activated sludge process for aerobic treatment,

gravity thickeners/sludge presses for dewatering of primary sludge, decanters for dewatering of

secondary sludge. The recovered sludge is sold to Paper Board Manufcaturers.

The Company has also installed 4 Nos of paper Board machines to produce 15 TPD paper board

based on ETP sludge to environmental friendly disposal of ETP Sludge even when paper board

manufacturers do not purchase ETP sludge for any reason.

Effluent Treatment plant will be upgraded from existing 20000 m3/day effluent to 30000 m3/day

effluent as a part of Environmental Management plant in the proposed project.

Air emission control system comprises of Electrostatic Precipitators in all the boiler with online SPM

monitors directly connected to Punjab Pollution Control Board Servers.

Boiler ash from coal burning is used by cement manufactures whereas filling of low lying areas and

brick manufacturing is the common practice adopted for boiler ash from rice husk.

Lime sludge is burnt in the state of the art Lime Kiln based on Turbo Spin Flash Calcination to

recover Calcium Oxide for reusing in re-causticizing process. The expansion of the existing Lime Kiln

is also a part of Environmental Management Plan in the proposed expansion plan.

34

3.6. Raw Material required with estimated quantity, likely source, marketing area of the final product/s, mode of transport of raw material and finished product.

Kuantum Papers Ltd uses bagasse, wheat straw, sarkanda, kahi grass, bamboo, Eucalyptus, Poplar,

veneer Chips etc alongwith purchased hardwood and Soft wood pulp as raw material for paper

manufacture. Coal, Rice husk & raw material dust is used as fuel in power boiler for the power and

steam. Besides this there are several other raw materials like caustic soda, Oxygen, bleaching

chemicals, fillers, paper chemicals and other functional chemicals such as cooking aids, defoamers,

coagulants etc used for various purposes. Apart from this, after implementation of the proposed

project, the additional chemicals required for manufacturing process include oxygen, Sodium

sulphate, chlorine dioxide etc . The most of these raw materials are to be sourced from the existing

supplier. The quantitative details of the major raw materials/finished are attached as under:

S.No Particulars Requirement/annum Source and Mode of Transportation

Existing After Expansion

(Estimated)

1 Finished Product

148500 TPA (Currently operating at 100000 TPA)

148500 TPA Existing Dealer Network, Through Trucks and Containers

1 Agro-residues

136125 TPA 136125 TPA Wild Growth/Crop Waste, Transported in tractor trolleys/trucks

2 Woody Raw Materials

44000 TPA 165000 TPA Bamboo from HP, Wood from Farmers and contractors, Vineer waste from Plywood industry. Transported in Trucks.

3 Purchased Pulp

13500 TPA (Being Used to produce 300 TPD Paper)

50100 (Reqd to operate at full capacity to produce 450 TPD Paper)

20500 TPA Mostly imported. Some indigenous quantities also purchased. Transported to mill in containers

4 Fillers 15700 TPA 30000 TPA Onsite Manufacturing by utilizing flue gas from the boilers.

5 Cooking Chemicals (Caustic & white Liquor)

24750 TPA 42900 TPA Recovered in the CRP. Make Up quantity purchased from Market

6 Total Chlorine (Elemental &

4650 TPA 3050 TPA Sourced from Caustic and Chlorine Manufacturers in Punjab. Transported in Trucks.

35

Hypochlorite)

7 ClO2 Nil 1650 Onsite Generation

9 Oxygen 445 TPA 2850 Presently purchased in tanker. Onsite Generation after expansion.

10 Multi fuels Fuel (Calculated as Equivalent to Husk)

210000 405000 Coal purchased from CCL, Open Market. Husk purchased from rice shellers. Other bio-fuels from farmers, in-house generated raw material dust. Coal transported through railways and trucks. Husk Transported in trucks and Tractor trolleys.

11 Water 6930000 m3/annum ((for 300 TPD Paper), 70 m3/t of Paper

9652500 m3/annum, 65 m3/t of paper

Deep bore-wells within factory premises

3.7. Resource Optimization/Recycling and reuse envisaged in the project, if any, should be

After implementation of oxygen Delignification and chlorine dioxide bleaching, the pollution load in

the expected to go down and hence improvement in the quality of final treated effluent in terms of

both colour and COD. The mill has planned to utilize a part of treated effluent for wet washing of raw

materials for replacing the good water presently being used by the mill. This is expected to save 5 m3

water per ton of paper. Therefore, the quantity of fresh water consumption projected after

implementation of the proposed plan, is 65m3 per ton of paper against existing 70 m3/ton of paper.

Further, it would also be possible to implement water loop closure in some of the sections of the

pulp bleaching plant.

3.8. Availability of water, its source, Energy/power requirement and source

During previous Environmental Clearance in 2009 , Kuantum Papers Ltd had obtained permission to

withdraw 40054 m3/day of ground water which is equivalent to 89 m3/ton of paper but with various

water conservation measures adopted in the mill, the company has been able to reduce the water

consumption to 70 m3/ton of paper. With 65 m3 water/ton of paper as estimated after proposed plan,

the total fresh water requirement per day will be 29250 m3 and the capacity to withdraw this quantity

is already available with Kuantum Papers Ltd. The source of water is deep bore-wells installed with the

permission of Central Ground Water Board.

36

The company has its own power generation apart from supply from Punjab State Electricity Board. In

the proposed plan, the existing 17 .5 MW co-generation capacity will be enhanced to 28 MW capacity.

3.9. Quantity of wastes to be generated (liquid and Solid) and scheme for their Management Disposal

The following are the quantities of the wastes to be generated and scheme for their management and

disposal.

Liquid Wastes: The quantity of the water water generation after proposed expansion will be around

26500 m3/day. The existing ETP ( Activated Sludge Process) has the volumetric capacity to treat

20000 m3 effluent per day. The capacity of the ETP will be enhanced to treat 30000 m3 effluent per

day. The proposed Flow Chart of ETP is attached below:

FLOW CHART-EFFLUENT TREATMENT PLANT

Volume 1795

COD 224

BOD 28

TSS 140

Volume, m3 9470

Wet washing Effluent Volume, m3 7000

Volume, m3 12000 Volume, m3 2500 COD, ppm 595

COD, ppm 4850 COD, ppm 3298 Volume, m3 13200 BOD, ppm 138

BOD, ppm 1410 BOD, ppm 846 COD, ppm 2432 TSS, ppm 459

TSS, ppm 2070 TSS, ppm 920 BOD, ppm 582

TSS, ppm 3236

Volume, m3 7000 Volume 13200 Volume, m3 13200

Total Wt, Kg

(BD) 11077 Wet Washing COD, ppm 1751 COD, ppm 1138

Total Wt, Kg

(AD) 36923

Total Wt, Kg

(AD) 35897 Clarifier BOD, ppm 430 BOD, ppm 275 BOD, ppm 28

TSS, ppm 1019 TSS, ppm 722 TSS, ppm 43

Total Wt, Kg

(BD) 2723

Total Wt, Kg

(BD) 7933

Total Wt, Kg

(AD) 6808

Total Wt, Kg

(AD) 19833

Volume 6200

1751

BOD, ppm 430

TSS, ppm 1019

COD, ppm 229

BOD, ppm 17

TSS, ppm 7

3 Nos Sludge PressSludge From Primary and

bioclarifier

Treated Effluent

1 No Decanter

Centrifuge

Sludge

Treated Effluent

Combined Effluent

Sand Sand

Clarified Effluent recycled

back to wet washing system

Clarified wet washing

effluent to ETP

Treated Effluent

Wet

Washing

Clarifier

Primary

Clarifier

UASB Reactor

Activated Sludge Tank-1

Activated Sludge Tank-2

Secondary

Clarifier

Tertiary Treament

Tertiary Clarifier

Bio-Clarifier

Raw Material washing effluent consisting of mainly easily biodegradable matter alongwith a part of

unbleached centricleaner effluent will be treated will be treated in the existing anaerobic reactor

(UASB Reactor). The main advantage of the anaerobic treatment is the recovery of bioenergy in

addition to reduced pollution load which will ultimately help the mill to reduce the operation cost of

ETP . The biogas thus recovered will be used as fuel along with rice husk in the boiler

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The other effluent streams mainly the bleach plant effluent, spills etc alongwith anaerobically

treated effluent will be treated through modified ETP based on activated sludge process to meet the

environmental discharge standards.

The aerobically treated effluent from Activated Sludge Process followed by Secondary Clarifier will be

further subjected to suitable chemical treatment to further reduce colour and suspended solids. The

chemically treated effluent will be further clarified in a tertiary clarifier before using for plantation and

irrigation.

The treated effluent after meeting the norms stipulated by regulatory authority as indicated below

will be used by mills itself for plantation and rest will be used by local farmers for irrigation of their

land. Infact the use of treated effluent will reduce the dependence of farmer to some extent on

ground water being used for irrigation purpose. The mill has already set up a good network for

supply of treated effluent to farmers for irrigating an area around 2200 acres . The soil

characteristics being irrigated with the treated effluent will be periodically monitored by the mill.

Solid Waste:

The solids waste generation after proposed expansion will be 20 TPD from ETP. The Mill has installed

sludge thickening presses for dewatering of primary sludge. The Secondary sludge is thickened in

decanters. ETP sludge is sold to board manufacturers. The mill has also installed 4 Nos Paper board

machines to take care of ETP sludge disposal if it is not sold outside for any reason.

Lime Sludge generation from Chemical Recovery Plant will be around 220 TPD. Lime sludge will be

burnt in the Lime Kiln to recover calcium oxide. The capacity of the existing Lime Kiln will be enhanced

by addition of one more Lime Kiln.

Coal ash will be given to cement manufacturers. Capacity to manufacture bricks will be increased

apart from land filling within premises as per CPCB guidelines. Quantity will depend on the quantum of

husk used based on the price in comparison to coal. However, it will vary between 20-20 MT per day.

Raw material dust will be burnt in the multifuel boilers. The quantity will be around 15 MT per day.

38

The following is the summary of the various environmental safeguards planned under the proposed expansion, up-gradation and modernization plan.

S.No Particulars Prescribed limits/

Requirement

Existing Status Proposed Safeguard/Management after Expansion

2. Water

Consumption/T

on of Paper

Not specified 70-72 After proposed expansion, the water consumption is expected

to come down to 65 m3/ton of paper due to upgradation of

equipment and modernization of the process.

2. Waste water

discharge /ton

of Paper

100 55 Recycling of treated effluent to low value application where

colour is not a limiting factor.

3 Treated

Effluent

Parameters

COD: 350 ppm; BOD:

30 ppm ; TSS: 50

ppm; pH: 6.5-8.5 ;

SAR: 26

COD < 250 ppm; BOD < 28 ppm; TSS

< 50 ppm; pH 7.0-7.5; SAR < 10

Capacity of the ETP will be updraded from existing 20000

m3/day to 30000 m3/day to treat additional volume of effluent

and maintain the parameters within prescribed limits.

4 AOX Less than 1 Kg/ton

of Paper

< 1 Kg/ton of Paper Will be maintained within prescribed limits. ODL and partial

substitution of elemental chlorine with chlorine dioxide

proposed in the existing bleaching sequence for agro-pulping

street. ODL and ECF process proposed for wood pulping street.

5 Installation of

Lime Kiln

Required Lime Kiln Capacity required for

existing pulping capacity is 80 MT

(BD) Lime sludge for recovery of 45

MT CaO . The company has

installed Lime kiln with capacity of

140 MT (BD) Lime sludge to recover

80 MT CaO.

The capacity of the Lime Kiln will be upgraded to meet the

requirement after expansion.

6 Green Belt 33% of total area 42% of total area 45% of the total area will be covered under green belt.

7. Stack Emissions < 100 mg/Nm3 < 100 mg/Nm3 ESPs will be installed in the proposed Boilers to meet the

existing norms.

8 Odour Control

System

For mills using

sulphur compounds

Not applicable as mill is not using

sulphate process

Odour control system will be installed under proposed

expansion.

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9 Solid Waste

(ETP Sludge)

Disposal as per

Hazardous Waste

Rules

Total Quantity Generated is around

12 MT per day. Being sold to Board

Manufacturers. Board Mill for

producing 15 MT Board have also

been installed.

Total Quantity Generation will be around 20 MT after proposed

Expansion. Board Manufacturing within premises and sale to

board manufactures will be used as mode of disposal.

10 Boiler Ash Coal ash is given to cement

manufacturers. Husk ash is being

used for brick manufacturing and

filling of low lying area as per CPCB

Guidelines.

Coal ash will be given to cement manufacturers. Capacity to

manufacture bricks will be increased apart from land filling

within premises as per CPCB guidelines.

40

3.10. Schematic Representation of the feasibility drawing which gives information of EIA Purpose.

Scope of Study:

The study area will comprise of a core zone covering the project area and a buffer zone covering an

area within 10km radius around the project site.

The study will cover in brief the following chapters including Introduction, Project Description of the

environment, Anticipated Environmental Impacts and mitigation measures, Analysis of alternatives,

Environmental Monitoring program, Additional studies, Project Benefits, Environmental Cost-Benefit

Analysis, Environment management Plan, Summary and Conclusion and Disclosure of Consultant. It

will also include literature review, field studies, impact assessment and preparation of the EIA/ EMP

document covering the disciplines of Land Use, Water Use, Demography & Socio-economics, Soils,

Geology, Hydrology, Meteorology, Air Quality, Water Quality, Terrestrial Ecology, Noise, solid waste

management and Occupational Health & Safety. The executive summary will cover concise discussions

on significant findings and recommended actions.

The study will comprise of the following stages:

Stage 'A' Determination of baseline conditions, in all the disciplines outlined

above

Stage 'B' Assessing the impacts on the environment due to the construction

and operation of the power plant and recommendations on

amelioratory measures to be taken to minimize the adverse impacts

on the environment to acceptable levels. A suitable post-study

monitoring programme will be out-lined.

Stage 'C' Preparation of EIA/ EMP document.

An outline of the activities to be undertaken for each stage is given below:

STAGE ‘A’:

The suitability of sites with respect to plant, waste disposal areas and associated facilities for the

proposed project shall be examined. The policy, legal and administrative framework will be included in

the report. Existing baseline conditions in the Study Area (s), including existing use of lands, resources

and other activities which have potential in combination with proposed Project activities to affect the

environment.

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Project Description

Concise description of the project's engineering, geographical and pollution control features including

any offsite facility that may be required will be covered in this section.

Data on the land use, forest land involved, if any, number of families, if any, to be affected and

number of affected homestead due to land acquisition shall be collected and highlighted in the report.

Baseline data

The baseline data collection will be based upon one season (three month) field environmental

monitoring data (excluding monsoon). This includes one season field monitoring meteorological data,

long term micro-metrology, ambient air quality measurements of Suspended Particulate Matter

(SPM), Respirable Particulate Matter (RPM (10 and 2.5µm)), NO2, SO2 and CO, water quality, noise

measurement, traffic survey, soil quality etc. Secondary data like ecology, land use pattern,

demographic profile data, data on socio-economic secondary sources, Land use pattern of the study

area shall be established through available data/ information from secondary sources. The information

must be sufficient to support predictions of environmental effects and conclusions about the impacts

and consequences of proposed activities.

4 Rs Concept

Concept of Reuse, recycle, recover and recharge will be applied for the proposed project. Waste

Generated will be converted into value addition products. Zero discharge will be maintained to

prevent any damage to environment as well as society.

STAGE 'B':

Environmental Impact

The features of the proposed project, which are likely to have impact on the environment shall be

discussed in detail covering gaseous emissions, liquid effluents, particulates, solid wastes, noise, etc.

with knowledge of the baseline condition and plant characteristics, positive and negative impacts

during the construction and operation phase will be identified and assessed. Impact of the stack

emissions on terrestrial flora will be scientifically documented based upon species composition of the

area and their air pollution tolerance levels. The impact will be expressed through appropriate matrix.

Special reference will be made with respect to following impacts.

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Air Quality Impact:

A computer based internationally recognized mathematical air quality model ISCST3 will be run to

predict the concentration of SO2, NOx & SPM due to the operation of the power plant. The model will

take into account other sources of pollution and topographical features of the study area. The

emission of relevant pollutant (SO2, NOx and SPM) from nearby sources shall be used in the model for

more accurate estimate of air quality. The results will be presented for short term (24 hourly)

concentrations over a radius of 10 km. around the plant. The dispersion model results will be included

in the report using isopleths or other graphical methods, over laying a map of the surrounding area.

The predicted air quality shall be compared with existing regulations and amelioratory measures, if

any required will be identified. The impact at all the monitoring locations shall also be estimated.

Water Quality Impact:

The impact of liquid effluents on natural water bodies receiving the effluents shall be established and

significant parameters, which are likely to change critically, shall be clearly spelt out. Identify Project

activities, including construction, which may affect surface water or ground water.

� Describe how water will be discharged to the river or any other water body.

� Describe the potential effects on the river and groundwater where applicable.

� Describe mitigation measures to minimize potential effects including potential discharge of

the Project on the surface water source and groundwater during the construction and

operation, phases of the Project on-and off-site.

� Describe proposed water management programs.

� Describe anticipated water use minimization, water recycling, water conservation efforts and

wastewater handling for this project.

� Describe the quantity and source of wastewater. Review industrial wastewater treatment

technology and describe the wastewater treatment system. Consider techniques, e.g.,

pollution prevention and in-plant controls, to establish the lowest practical discharge levels (in

terms of loads and concentrations) of the new plant.

� Provide a summary of discharge parameters, water quality effects and possibilities for

reduction based on technology.

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� Identify any activities that may potentially affect fish habitat and fish resources.

Social Impacts

Social impacts will be identified and necessary amelioratory measures, if any required will be

prescribed. The beneficial impacts of the project on the local community shall also be delineated.

Some impacts are associated with the health, sanitation, security and housing needs of the workforce.

In particular, the proponent will identity socio-cultural impacts of large number of workers employed

during the construction phase on local communities. Provide information regarding the effects of the

Project on the Study Area, on the region, including:

� Local employment and training;

� Local procurement;

� Population changes;

� Demands upon local services and infrastructure such as social services and law enforcement;

and

� Economic benefits.

Prediction of Noise Levels:

Sources of noise and its impacts on the environment shall be clearly brought out. The noise levels at

varying distances from source will be predicted using suitable model. Discuss the effect on noise levels

at local residences during the construction and operational phases of the Project. A comparison of

measured noise (Leq) at monitoring locations to that of predicted noise levels (Leq) will be made and

mitigative measures required, if any, will be recommended to conform to the regulatory ambient air

noise standards and identify noise reduction measures and traffic management strategies.

Disaster Management Plan and Occupational Safety:

A general Disaster Management Plan (DMP) for dealing with emergency situations arising due to fire,

explosion, leakages of hazardous substances, if any in the plant shall be prepared. The plan will also

include storage, handling, transportation etc. for the hazardous and toxic materials to be used in the

power station. Occupational risk involved during construction and operation of the plant should be

assessed and necessary safety and protective measures should be spelt out.

44

Green Belt Development Plan:

A green belt development plan for the project site should be included in the EIA report as per MOEF

guidelines. Details such as areas to be planted, suitable plant species, plantation technique and

necessary infrastructures required for plantation etc. shall be clearly mentioned. The plan shall include

the minimum width, tree density. Other aspects like rain water harvesting by designing suitable

recharge pits shall be included.

Post-Study Monitoring Plan:

It is necessary to monitor certain environmental parameters identified as critical or as required by

regulatory agencies. Considering the requirements of Regulatory Agencies and identified critical

parameters, a post study environmental monitoring programmed will be designed. All equipment and

manpower requirement necessary for the implementation of this programmed and cost involved will

also be identified.

Environmental Management Plan:

At this stage, it may become apparent that additional environmental management and pollution

control measures will be necessary to meet the requirements of the regulatory agencies. In respect of

impacts identified, which need to be controlled, an environmental management program in

accordance with the principles should be considered. Where practicable costs of monitoring

programs should be estimated and a budget for implementation shall be presented.

Recommendations on mitigation measures, as and where such measures are warranted shall be

delineated. Environmental Management Plans will be developed to selectively mitigate the adverse

impacts of the power project activities. Recommendations shall be made concerning establishment of

Environment Management Group and training of staff, wherever necessary.

STAGE 'C'

Preparation of EIA document for Public Consultation and Application to SPCB for Environmental

Clearance.

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4. Site Analysis

4.0. Connectivity

The project site is well connected with Chandigarh-Hoshiarpur Highway HN-94. Nearest towns are

Garhshankar and Mahilpur, both 9 Kms from each side of the project Site. Nearest city Hoshiarpur is

just 30 Km from the Project Site. Nearest major Railway Station is Phagwara at a distance of 45 Kms.

Nearest Airport is 110 away at Chandigarh.

4.1. Land Form, Land Use and Land Ownership

This is an expansion, upgradation and modernization of the existing project to be implemented in the

existing premises. Land ownership with the Kuantum Papers Ltd. No additional land is required for the

proposed expansion.

4.2. Topography (alongwith map)

This area of Punjab has plain topography. The map is attached below:

4.3. Existing land use pattern

Proposed area for the expansion and upgradation/Modernization activities is within the existing

premises of the factory. No National Park, Wild Life Century, Biosphere Reserved, Major River fall

within 10 Km radius of the plant.

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4.4. Existing Infrastructure

The proposed expansion cum modernization project is to implemented in the existing factory

premises Since there will be no change in the installed capacity of the plant after implementation of

the proposal, the existing infrastructures are adequate for successful implementation of successful

operation of the plant after expansion. Apart from facilities to produce 450 TPD Paper, the following

infrastructure facilities are available in the existing plant:

• Offices, Guest House, Parking, Residential Colony, Temples, Club House, Gym and Security

• Raw Material weighing and Storage facility

• Engineering Workshops

• Effluent Treatment plant

• Greenbelt covering 45% of total Plant Area

• Company’s Dispensary

• School managed by the company

4.5. Soil Classification

The soils are yellowish brown to dark brown in colour in general. These range from calcerous sand to

fine sandy loam to silts. Sand is mostly cultivated well drained with estimated infiltration rate of 8-10

cm/hours.

4.6. Climatic Data from Secondary Source

The climate of Hoshiarpur district can be classified as tropical steppe, hot and semi-arid which is

mainly dry with very hot summer and cold winter except during monsoon season when moist air of

oceanic origin penetrate into the district. There are four seasons in a year. The hot weather season

starts from mid March to last week of the June followed by the south west monsoon which lasts upto

September. The transition period from September to November forms the post monsoon season. The

winter season starts late in November and remains upto first week of March.

The normal annual rainfall of the district is 938 mm which is unevenly distributed over the area in 38

days. The south west monsoon , sets in from last week of June and withdraws in end of September,

contributed about 77% of annual rainfall. July and August are the wettest months. Rest 23% rainfall is

received during non-monsoon period in the wake of western disturbances and thunder storms.

Generally rainfall in the district increases from southwest to northeast

4.7. Social Infrastructure Available

School, Colleges, Professional Institutions, Dispensaries, Hospitals, Police Stations, Temples and other

places of worship within 10 Kms of the factory.

47

5. Planning Brief

5.0. Planning Concept (Type of industries, facilities, transportation etc) Town and Country

Planning/Development Authority Classification.

The proposed project is expansion and modernization/up-gradation of existing operational pulp and

paper mill with well developed vendor, transportation and dealer network. Therefore, all the facilities

required for implementation of the proposed project may be provided without any problem. The

existing premises have been given clearance by the Town and Country Planning/Development

Authority during last environmental clearance in 2009 for expansion from 150 to 450 TPD.

5.1. Polulation Projection

The company will prefer to appoint manpower from the professional institutions within 50 Kms and

local ITIs of the area and hence no major influx of polulation due to the proposed expansion cum

modernization/up-gradation is envisaged.

5.2. Land use planning (breakup alongwith greenbelt etc)

Out of total 257 acres area of land, 114 acres is being used for processing, 108.4 acres is already

covered under greenbelt which is being further increased by covering another 8 acres under

plantation and remaining around 27 acres is earmarked for other activities such as ash disposal etc.

After proposed expansion, Greenbelt will be around 45% of the total plant area.

5.3. Assessment of Infrastructure Demand (Physical & Social)

Kuantum Papers Ltd will assess both social and infrastructure demand in the areas around the plant

and will take up development activities under Corporate Social Responsibility (CSR) program. The mill

is already involved in CSR activities in the nearby villages.

5.4. Amenities/Facilities

M/s Kuantum Papers Ltd has been providing various amenties/facilities to the people in the nearby

area. Some of these are listed as under:

• The company in running a school upto class 10th with dedicated quality teaching staff. The

school has helped the local poor people to afford quality education in the vicinity.

• The Company is also providing assistance both financial and inftastructural to nearby govt

schools.

• The company has also implemented scholarship scheme for the students.

• Medical Check-up camps are organised in the nearby villages by the company.

48

• Blood Donation Camps are also organized by the company.

• Drinking water supply to nearby areas.

• Supply of subsidized clonal eucalyptus planations to the villagers to promote agro-forestry.

• The company is also conducting adult education programs.

• Vocational training to students from nearby ITIs.

• Construction and repair of roads in nearby villages.

6. Proposed infrastructure

6.0. Industrial Area (Processing Area)

The company owns 257 acres of land. Out of 257 acres, 114 acres is being used as processing area. The

proposed project will be implemented in this existing area and no additional land will be acquired

for industrial use.

6.1. Residential Area (Non Processing Area)

The company has a residential complex within the existing factory premises. This Residential complex

is sufficient to cater the requirement of the proposed project.

6.2. Green Belt

Out of around 260 acres of total factory area, 108.4 acres of land has already been covered under

green belt as per drawing attached below. Apart of this, additional around 8 acres of land is currently

under development for plantation. This will make total area under green belt as around 116 acres

which is around 45% of the total factory area. The details of the green belt within the factory premises

are shown in following Figure:

49

Area under Green Belt at Kuantum Papers Ltd

6.3. Social Infrastructure

The social infrastructure in locality of the project is going to improve due to direct & indirect

employment generation and hence supporting infrastructure development to cater the additional

need.

50

6.4. Connectivity

The project site is well connected with Chandigarh-Hoshiarpur Highway HN-94. Nearest towns are

Garhshankar and Mahilpur, both 9 Kms from the project Site. Nearest city Hoshiarpur is just 30 Km

from the Project Site. Nearest major Railway Station is Phagwara at a distance of 45 Kms. Nearest

Airport is 110 away at Chandigarh.

6.5. Drinking Water Management (Source and Supply of Water)

Deep Borewells are the existing source of drinking water and same is stored in a storage tank for

further distribution to different user points.

6.6. Sewerage System

The sewerage water is being treated in the septic tank followed by treatment in the activated sludge

process.

6.7. Industrial Waste Management

The waste water will be treated in the Effluent Treatment plant based on Biomethanation and

activated sludge process. The treated effluent will be used only for plantation within & outside

premises and for on land irrigation by the farmers in nearby villages.

Used oil will be stored in secured place and sold to authorized recyclers.

6.8. Solid Waste Management

The solids waste generation after proposed expansion will be 20 TPD from ETP. The Mill has installed

sludge thickening presses for dewatering of primary sludge. The Secondary sludge is thickened in

decanters. ETP sludge is sold to board manufacturers. The mill has also installed 4 Nos. Paper board

machines to take care of ETP sludge disposal if it is not sold outside for any reason.

Lime Sludge generation from Chemical Recovery Plant will be around 220 TPD. Lime sludge will be

burnt in the Lime Kiln to recover calcium oxide. The capacity of the existing Lime Kiln will be enhanced

by addition of one more Lime Kiln.

Coal ash will be given to cement manufacturers. Capacity to manufacture bricks will be increased

apart from land filling within premises as per CPCB guidelines.

Raw material dust will be burnt in the multifuel Boiler.

6.9. Power Requirement & Supply/Source

The Power requirement after expansion will be around 25 MW. The company has proposed to

enhance the co-generation power capacity to 28 MW. Apart from this, the mill has provision to get

power from state electricity board and open access system as and when required.

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7. Rehabilitation and Resettlement (R&R) Plan

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

The proposed project is the upgradation, modernization and expansion of the existing facilities.

Further, this proposed project is to be undertaken within existing premise without acquiring any land.

In view of the fact that none will be affected by this project, no rehabilitation and resettlement plan is

applicable in this case.

8. Project Schedule and Cost Estimates

8.0. Likely date of start of construction and likely date of completion (Time Schedule for the

project to be given)

The construction will start after obtaining Environmental Clearance from Ministry of Environment and

Forests and all other relevant clearances from the State Government agencies.

8.1. Estimated Project Cost alongwith analysis in terms of economic viability of the project.

The total estimated project cost of the project is Rs 337 Crores. More than 45% of this estimate will be

spend towards implementation of Environmental Management Plan. The following table summarizes

the project estimates under different heads.

Table: Estimated Project Cost

S. No Particulars Details Estimated Cost (INR Crores)

% age of Total Estimated Cost

1 Capacity Expansion and Upgradation/Modernization

Wood Pulp mill, Upgradation of Agro-Pulp Mill

116.82 34.65%

2 Co-generation Power Plant

12 MW Turbine, 80TPH Power Boiler

62.24 18.46%

3 Environmental Management

New Chemical Recovery Plant, Oxygen Delignification, Chlorine Dioxide plant, Upgradation of Effluent Treatment Plant, Odour Control System, Lime Kiln etc.

158.00 46.87%

Total 337.06 100%

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The cost of cooking chemicals accounts for around 16% of manufacturing cost. The installation of

additional chemicals recovery apart from Environmental Management will generate around Rs 40

Crores/annum

Kuantum is currently operating a 16 Mega Watt co-generation power plant. We propose to install

an additional 12 Mega Watt co-generation power plant for our increased energy needs. This total

installed capacity of 28 Mega Watt will fulfill the steam and power requirement after the current

expansion of Pulp Mill and Chemical Recovery. This added capacity will result in an annual cost

reduction of Rs 30 Crores towards the power and steam costs.

In the present scenario the cost of various input material required to operate the plant have risen

to exorbitant levels. This has led to the manufacturing costs of our products rising significantly

higher. In order to meet the competitive market demands, one needs to adopt a strategy of

increasing volumes and updating the technologies, enabling control on the manufacturing costs.

At present we are producing 165 Tonnes of agro pulp per day from agro residues viz. Wheat

Straw, Sarkanda and Baggasse. Enhancing the wood pulp production from 60 TPD to 200 TPD will

be a prudent idea to curtail the manufacturing costs apart from making the wood street viable for

Oxygen Delignification (ODL) Elemental Chlorine Free (ECF) Bleaching, Conventional Chemical

Recovery Plant (CRP), which at the present capacity are not techno-economically viable.

The added chemical pulping capacity of 140 TPD will fetch additional annual contribution to the

tune of Rs 40 Crores.

Consequent to the installation of expansion project, the company will have to install ODL, ECF

Bleaching, Lime Kiln to regulate lime sludge coming out of the Chemical recovery Plant and

upgrade the existing effluent treatment plant. Despite no return on these components, the

company remains compliant with the various environmental and pollution control norms. Also, to

optimize the operations, the company will upgrade its existing equipments including balancing

equipments.

9. Analysis of proposal (Final Recommendations)

9.0. Financial and Social Benefits with special emphasis on the benefit to the local people

including tribal population, if any, in the area.

The existing production capacity of Kuantum Papers Ltd is 450 TPD and this will remain unchanged

after implementation of proposed Up-gradation, Modernization and Expansion programme.

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The objective of the proposed proposal is therefore not the production capacity expansion but

balancing the existing facilities by expansion in the wood pulping street, Co-generation Power

Capacity to make the Convention Chemical Recovery Plant (CRP), Oxygen Delignification (ODL) and

Elemental Chlorine Free Bleaching (ECF) Sequence feasible for wood street which otherwise is not

technically feasible at 60 TPD capacity. The technologically being proposed is far superior from

environmental point of view in comparison to existing technology in the wood pulping street.

The proposed project is also aimed to further reduce the environmental impact of existing agro-street

by implementation of Oxygen Delignification (ODL) and Partial substitution of chlorine with chlorine

dioxide.

Apart from giving direct and indirect employment to local people, improving the social and

infrastructural status of the area around the mill, it will reduce the dependence of the mill on

imported hard wood pulp thus limiting the outflow of the cash from the country.

The company is complying with all the conditions of the Environmental Clearance (No. J-11011/344/2008-

IA-II (I) dated 1/1/2009) granted to them for expansion in capacity from 150 TPD to 450 TPD on January

1, 2009 which was applicable till recently upto December 31, 2014. The Regional Director, MOEF,

Chandigarh has been monitoring the compliance of the conditions of previous Environmental Clearance

granted to them. In this regard, a compliance report has been also issued by the Regional Office of the

Ministry vide Letter No. 5-169/2009-RO (NZ)/6113 dated 25/7/2014 confirming compliance by the

proponent company.

The implementation of the above, on one side will improve the profitability of the Company while on

the other side, will drastically reduce the impact on the environment. Therefore, Kuantum Paper Ltd’s

proposal is both environmentally and economically positive project.

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