Pre-Feasibility Report \

As per Ministry of Environment and ForestsDated 30th December, 2010

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1. Executive Summary M/s Indian Potash Limited Distillery Unitproposes a Unit of - 30 KLPD Distillery(Molasses) & 1.0 MW co gen power. at P.O.Rohana Mill,Block Charthawal Tehsil-Muzzaffarnagar ,District Muzaffarnagar( U.P)251202Location Co-ordinates of Plant and MachineryatCentre :-Latitude : 29°34’08.06” NLongitude: 77°41’06.73” E

Total project cost:- 6100.00 Lacs.Area:- 3.28 Hectare or 8.1 AcreNo of Working Days : 300 Days

2. Introduction of the projectBackground information

The proposed capacity of Distillery Plant is30 KLPD E N A / R S / A A (Molasses based)and 1.0 MW Co – gen Power.

It is a Green field project based on theconcept of Zero Discharge.

The distillery has availability of rawmaterial (Molasses), water

Ministry of Environment and Forests

Pre-Feasibility Report as per Ministry of Environment andForests dated 30th December, 2010

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electricity, unskilled, skilled andprofessional men-power etc. The plant islocated in one of the good cane growingarea in the state of Uttar Pradesh.In order to effectively utilize the byproducts ofsugar mills of nearby areas, the managementof IPL DISTILLERY is planning to establish aMolasses based Distillery with latesttechnology for Fermentation system, “Wash toENA” Multi-Pressure Distillation System andForced Circulation re-boiler, Raw spent washconcentration in MEE and fallowed byincineration in incineration boiler in case ofMolasses based operation

The distillery shall also have the facility tomanufacture Absolute Alcohol (Fuel Ethanol)using Molecular Sieve DehydrationTechnology, keeping in view the fuel ethanolpolicy of Government of India.

i. Identification of project and projectproponent. In case of miningproject, a copy of mininglease/letter of intent should begiven.

The Establishment of New Molasses DistilleryPlant : 30 KLPD (Molasses) and 1.0 MW ofpower by M/s IPL Distillery.

ii. Brief description of nature of theproject.

It is a Green Field Project and Based onZero Liquid Discharge.

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Spent Wash Treatment Strategy1. Molasses Based: Spent wash of 238 KLD

(@ 7.9 KL/KL of Product) then firstconcentrated in MEE and the MEE rejectwill be incinerated in Slop/bagasse firedBoiler of capacity 12 TPH.

Other effluent : 363.00 KLDCondensate from MEE, Spent lees , FloorWashing and Blow downs will be treatedin secondary CPU plant(CondensatePolishing Unit )

Product planned: Extra Neutral alcohol /Rectified Spirit/ Ethanol (AbsoluteAlcohol).

The distillery unit is proposed at RohanaKalan within existing sugar premises ofIPL sugar unit due to easyavailability of molasses from own sugarmills .

iii. Need for the project and itsimportance to the country and or

region.

Besides the technical and environmentalbenefits fuel ethanol offers, it makestremendous economic sense in India asIndia's Import bill of crude petroleum isincreasing every year.

Fuel ethanol could significantly reduceIndia’s dependence on imported petroleum.

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With reference to Government of IndiaGazette Dated 4th & 13th Sept 2002the following states and union territorieshave to blend 5% Ethanol with petrol w.e.f.1st Jan 2003. This date has now beenextended to July 1, 2013 in view ofinadequate preparations by certain statesand Union Territories.State and Union Territories to blend 5%Ethanol. The Oil companies have alsostarted procurement of Fuel Ethanol byway of issue of tenders in the states ofUttarakhand and Madhya Pradesh. Thisis a clear indication that the Govt. ofIndia has concrete plans of extending theblending on All India basis.

PROJECTED ETHANOL (@5% BLENDING)DEMAND & SUPPLY IN INDIA (IN MNLITERS)Alcohol has assumed a very importantplace in the Country’s economy. It is a vitalraw material for a number of chemicals. Ithas been a source of large amount ofrevenue by way of Excise Duty levied byState Govt. on Alcoholic liquors. It has apotential as fuel in the form of poweralcohol for blending with petrol in the ratioup to 20:80. Fermentation alcohol hasgreat demand in countries like Japan,United States of America, Canada, SriLanka, etc. The synthetic alcoholproduced by these countries fromNaphtha of petroleum crude is notuseful for beverages. Large quantities ofalcohol were exported out of the countryduring last few years.

Cane Molasses is the single largest rawmaterial. India produces almost 25% of theworld's molasses production. The states

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of Maharashtra and Uttar Pradesh havesurplus molasses at present.

Consumption of Ethanol in India:Almost 50% of the ethanol production inIndia is consumed by the industrial sectorfor production of ethanol-based chemicalslike acetaldehyde, acetic acid, esters,butanol, glycol, pentaerythritol, vinylacetate etc. The remaining 40-50% isutilized by the potable sector. However,with the Government removing controls onprice and allocation of molasses, theethanol-based chemicals industry is facingdifficulties as the procurement price ofalcohol has increased substantially in thelast few years.

There are about 303 distilleries in thecountry with a total installed capacity of3095 million litres per annum.

Fuel EthanolEconomics:India is number two in the world inSugarcane production. The number ofsugar factories is 416 and 295 distilleriesin the country. Large number of sugarfactories co-produce ethanol. Theintroduction of ethanol fuel will give bigboost to Indian economy by following ways:The efficiency and commercial viability ofsugar factories will improve.Farmers will get higher price forsugarcane which will improve the socio-economic status of farmers.

Agriculture will get boost because ofadditional production of sorghum, jawarand sugarcane.Mixing of ethanol to petrol will save

foreign exchange worth Rs. 4000 croresevery year.

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Advantage of Fuel EthanolThe use of ethanol – blended gasoline hasvarious benefits as mentioned below andneeds to be promoted by the government.The new blend

In renewableReduces dependence on imports offorein oilImproves market opportunity forAgricultural CropsContributes to rural economicdevelopmentBenefit EnvironmentDisplaces dangerous and Environmentaldamaging components in gasoline, Suchas Benzene.

Environmental BenefitsEthanol is one of the best tools to fighturban air pollution from motor vehicles. Asan oxygenate (ethanol contains 35 oxygenby weight), fuel ethanol enhances thecombustion of gasoline, resulting in amore efficient burn and greatly reducedemissions. It helps reduce all pollutants,including hydrocarbons, NO, CO, fineparticulate and toxics.

10% ethanol blends reduce carbonmonoxide better than any otherreformulated gasoline blend – more than25%.

Ethanol is a low in reactivity and high inoxygen content, making it an effectivetool in reducing ozone pollution.Ethanol is safe replacement for toxic

octane enhancers in gasoline such asbenzene toluene and xylene.

ETBE lowers gasoline volatility and isparticularly effective in reducing VOC

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Emissions from automobiles.

Ethanol is produced from renewableagricultural wastes and feed-stocks suchas corn. Sugarcane, wheat, barley oat andwastes, it reduces greenhouse gas emission.

iv. Demand-Supply Gap. 70% of Gasoline consumed in India has todoped with 5% of Ethanol. To ensure that350 million Liters of Ethanol of rightquality will have to be made available inadequate quantities to various oil depotthroughout the Country.

In future when India has to reduce thedependence on petroleum imports due tohigh world market prices the doping ofgasoline by ethanol may go as high as 10%to 20%. In that case the requirement ofethanol will be still higher as shown below-

The present supply and future projection interms of ethanol use in India -

The projection of fuel ethanol required withthe @5% blending is about 31% of totalalcohol production in India. Consideringthe possibility of blending of petrol @ 10%in near future the requirement will increasesubstantially and therefore installation ofmore ethanol plants also becomesnecessary in order to cope up with therequirement.

v. Imports vs. Indigenous production. Only indigenous production.

vi. Export Possibility. No

vii. Domestic/export Markets. Domestic Only

viii. Employment Generation (Direct andIndirect) due to the project.

Direct employment :- approx 50 personsIndirect employment :- approx 30 persons

3. Project Description

Type of project including interlinkedand interdependent projects, if any.

Establishment of New 30 KLPD DistilleryPlant (Molasses) along with

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1.0 MW co-generation power

Location (map showing generallocation, specific location, andproject boundary & project sitelayout) with coordinates.

Location map enclosed (Google EARTH MAP)

Details of alternate sites consideredand the basis of selecting theproposed site, particularly theenvironmental considerations goneinto should be highlighted.

No alternate site is examined.Site is good in availability of Raw material.

Size or magnitude of operation. 30 KLPD Distillery (Molasses based) alongwith 1.0 MW Co-gen power.

Project description with processdetails (a schematic diagram! flowchart showing the project layout,components of the project etc.should be given)

Distillation and Fermentation flow diagramenclosed with Project report.

Raw material required along withestimated quantity, likely source,marketing area of final products,Mode of transport of raw Materialand Finished Product.

Molasses: 135.0 MT/day which will betransported from the own sugar units to theproposed Distillery.

Resource optimization/recyclingand reuse envisaged in the project,if any, should be briefly outlined.

70 % of water shall be recycled in differentstages of Process like Cooling Tower, MolassesDilution etc.

1. Molasses Based: Spent wash of 238KLD (@7.9 KL/KL of Product) firstconcentrated in MEE and the MEE rejectwill be incinerated in Slop fired Boiler ofcapacity 12 TPH.

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Supernatant from the decantation processwill be concentrated in MEE and the rejectfrom MEE (Thick Syrup) will be mixed withWet Cake of Decanter and Mixture will besold off as cattle feed.

Other Effluent :Approx 363.00 KLDWill be treated in Secondary Effluenttreatment Plant and 100% recycling will bedone.

Availability of water its source,Energy/power requirement andsource should be given.

Ground water through Tube well.Fresh Water requirementIndustrial use: 300 KLD (@ 10 KL /KL ofProduct )

Power Requirement800 KWHPower shall be supply to in houseproduction.

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

Liquid effluents-1. Molasses Based:

Spent wash : 238 KLD (@7.9 KL/KLof Product

Spent Wash Treatment strategy:1. Molasses Based Operation :

Spent wash first concentrated in MEE andthe MEE reject will be incinerated in Slopfired Boiler of capacity 12 TPH.

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Other Effluent :363.00 KLDWill be treated in Secondary Effluenttreatment Plant and 100% recycling willbe done.

Domestic Waste: 7.0 KLD will be treatedin separate soak pit and septic tank.

Solid Waste- :Molasses Based OperationFly Ash approx – 12.0 MT/DAY whichshall be used as manure

Fermenter Sludge : 2.0 MT/Day used asmanure

Schematic representations of thefeasibility drawing which giveinformation of EIA purpose.

It will be enclosed in EIA report.

4. Site Analysis

i. Connectivity. Railway Station: Rohana Kalan- 300 MtrsAir Port: IGI NEW DELHI– 126 KMS

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ii. Land Form, Land use and Landownership.

Plain and Non Agricultural Land is registered.

iii. Topography (along with map). Location Map (Google Earth map) enclosed.

iv. Existing land use pattern(agriculture, non-agriculture, forest,water bodies (including area underCRZ)), shortest distances from theperiphery of the project to peripheryof sanctuary, eco from the HFLindustrial area, be given.

Land use pattern will be incorporated in EIAStudy report.

v. Existing Infrastructure. Not any

vi. Soil classification Silty/clay/sand

vii. Climatic data from secondarysources.

Max. Temp:40 Degree C Mini.Temp: 1.1 Degree C AveTemp: 27.6 Degree C RelativeHumidity: 65 – 84 % AveTemp: 30 Degree

viii. Social Infrastructure available. Road, school & electricity.

5. Planning Brief

i. Planning Concept (type ofindustries, transportation etc) Townand Planning/ Developmentauthority Classification

Transportation by Road.

ii. Population Projection 50-80

iii. Land use planning (breakup alongwith green belt etc).

67 % of Land will be for Plant establishmentand other facilities. 33 % of total area Shall beused for Green Belt Development.

iv. Assessment of InfrastructureDemand (Physical & Social).

Local labors & construction material.

v. Amenities/Facilities. Companies’ employees and costumer/consumer shall be provided.

6. Proposed Infrastructure

i. Industrial Area (Processing Area). Industrial land

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ii. Residential Area (Non ProcessingArea).

As the Site is proposed near to district headquarter hence not proposed within project site

iii. Green Belt. Green belt development: 33% of total area ofproposed land.

iv. Social Infrastructure. Proposed plant will lead to the development ofcertain local ancillary facilities and consequentemployment opportunities. Further theproposed establishment will also lead to thedevelopment of market, trade centers, bankingactivities etc.

v. Connectivity (Traffic andRail/Metro/Water ways etc)

Railway Station: Rohana Kalan- 300 MtrsAir Port: IGI NEW DELHI– 126 KMS

vi. Drinking Water Management(Source water)

Ground water

vii. Sewerage System. Septic tank/Soak pit shall be available fordomestic effluent treatment.

viii. Industrial Waste Management. Spent Wash Treatment strategy:

1. Molasses Based Operation :Spent wash first concentrated in MEE andthe MEE reject will be incinerated in Slopfired Boiler of capacity 12.0 TPH.

Other Effluent :(Includes MEE condensate, Blow downand Spent lees & floor Washing )Will be treated in Secondary Effluenttreatment Plant and 100% recycling willbe done.

Domestic Waste: 7.0 KLD will be treatedin separate soak pit and septic tank.

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ix. Solid Waste Management. Fly Ash approx – 12.0 MT/DAYwhich shall be used as manure .

Fermenter Sludge : 2.0 MT/Day

2- Power Requirement & Supply /source.

Power generation 1.0 MW is proposed whichshall be used for in-house consumption andexport purposes.Total Power Requirement - 800 KWH

7. Rehabilitation and Resettlement(R&R) Plan

i. Policy to be adopted (Central/State)in respect Of the project affectedpersons including home oustees,land oustees and landless laborers(a brief outline to be given).

No R & R

8. Project Schedule & Cost Estimates

ii. Likely date of start of constructionand likely date of completion (Timeschedule for the project to be given).

After grant of NOC& Environmental

Clearance.

iii. Estimated project cost along withanalysis in terms of economicviability of the project.

Rs : 6100.00 Lakhs

9. Analysis of proposal (Final

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Recommendations)

i. Financial and social benefits withspecial emphasis on the benefit tothe local people including tribalpopulation, if any, in the area.

Financial Benefits:Benefits and advantages of molasses basedDistillery

a) The efficiency and Commercial viabilityof Sugar Factories will improve.

b) Farmer will get Higher price for SugarCane

c) Every 5% addition of ethanol to Petrolwill save foreign exchange worth Rs.4000 Crores every year.

Social Benefits:

a) Greater employment for local populationsb) Contributes to rural economic

developmentc) Displace dangerous and Environmentaldamaging component in Gasoline, Such asBenzene.

Environmental benefits:1. 10% ethanol blends reduce carbon

monoxide better than any reformulatedGasoline Blend – More than 25 %.

2. Ethanol is Low in reactivity and High inOxygen content, Making it an effectivetool in reducing Ozone Pollution.

3. Ethanol is Safe replacement for toxicOctane enhancer in Gasoline such asBenzene, toluene and Xylene.

Other Benefits:a) Revenues to the State and Central ex-

chequers.

b) Over all development of Muzaffar NagarDistrict in particular and Uttar PradeshState in general.

IPL DISTILLERY (Molasses Based Operation)WATER REQUIREMENT & GENERATION OF WASTE WATER FOR CAPACITY 30 KL/DAY (RS/ENA/AA)

Total Water Requirement300 KLPD (@ 10 KL/KL)

Molasses135 TPD(96 KLD)

Floor Washing20 KLPD

Process use240 KLPD

Fermentation & Distillation336 KLPD

Industrial use300 KLPD

Boiler make up water60 KLPD

Spent lees68 KLPD

Production30 KLPD

Spent wash=238 KLPD(@7.9 KL/KL OF PRODUCT)

Condensate228 KLPD

Evaporator Cap.-400 m3/day238+36+38=312 KLPD (SPENTWASH+RO REJECT+CIP WASTE)

Boiler 12TPH

CPU WITH RO363 KLPD

RO REJECT 10% Slope75 KLPD

CIP CLEANING40 KLD FOR CIP

(Burn in INC. Boiler)

Boiler Blow down05 KLPD

Power 1.0 MWTreated water for recycling 327 KLPD CLEANING

self consumption

Cooling Towermakeup/Fermentor

water 287 KLPDCT Blow Down 42

KLPD

Slud

geR

ecyc

ling

FLOW DIAGRAM OF WASTE WATER TREATMENT SYSTEM(Other than Spent Wash )

MEE Condensate +Lees +CT blow down+ DM water reject

EqualizationTank

Buffertank Primary Clarifier

DIFFUSEDAERATIONSYSTEM

ACTIVATEDSLUDGE

PROCESS

SecondaryClarifier

TREATED WATERRECYCLING FOR CTMAKEUP/FERMENTOR

UF ACF MGFREVERSEOSMOSIS

SATELLITE MAP OF THE PROPOSED DISTILLERY SITE

PROPOSED DISTILLERY SITE SOURCE- GOOGLE EARTH

TOPOSHEET NO 53G10 SCALE 1:50,000

PROPOSED DISTILLERY SITE SOURCE: GEOLOGICAL SURVEY OF INDIA