You are on page 1of 121


Piccadily Agro Industries Limited(PAIL),a public limited

company incorporated on March 25, 1994 is setting up a new plant
for manufacturing of crystal sugar and super refined white sugar
with licenced capacity of 2500 TCD at village-Bhadson, tehsil
Indri in district Karnal(Haryana). Mill will start its trial
operation at fag end of crushing season 1995-96. Expansion of
crushing capacity to 3500 TCD will be effected in next season
1996-97 season. Final expansion to 5000 TCD will be effected in
near future. At 3500 TCD it is proposed to co-generate surplus
power of 4.94 MW. At 5000 TCD surplus co-generated power for
export will be about 11.2 MW. PAIL is in joint sector with
Haryana State Industrial Development Corporation Ltd(HSIDC) as

Group of companies under Piccadily umbrella are:

Piccadily Sugar & Allied Industries Limited(PSAIL)

Piccadily Hotels Private Limited(PHPL)
Piccadily Holiday Resorts Limited (PHRL)
Soon-N-Sure Holdings Private limited(SNSHPL)

Promoters are also having large number of hotels

restaurants and bars and other business. These hotels are
running into profits for last several years. Promoters are also
having interest in trading activities. Promoters hold about 60
acres of agricultural land in Punjab, Himachal pradesh and

PAIL management of factory, which lays great emphasis on
all-around performance improvement, has rightly embarked on a
comprehensive programmes for sugar cane development, like
introduction of foundation seeds, fertilizer on subsidized
rates, supply of plant protection equipment, crop insurance,
farmers welfare scheme etc.

It is also proposed that PAIL will assist farmers in

obtaining loans for seed, fertilizer, pesticides, implements
from commercial banks as crop loan and interest component in
deserving cases is proposed to be borne by mill. At this stage a
provision of Rs 25 Lacs is also being made to provide financial
aid to farmers so that adequate cane availability can be ensured
for expansion of crushing capacity to 5000 TCD.


PAIL proposes following products

1. White crystal sugar

2. Super refined white sugar
3. Packaged soft sugar


1. Bagasse
2. Molasses
3. Co-generation of power

The cane for factory has a fiber content of 14.5%. The

bagasse(with 50% moisture) production is taken to be 30% on
cane. An allowance for bagacillo and start up wastes has been

made and for the purpose of boiler combustion, the available
bagasse is taken as 28%. The potential of huge quantum of
surplus bagasse, in near future when expansion will be done to
5000 TCD crushing capacity has given a fillip to the process of
investigating the viability of co-generation in the factory.

Power is the most essential input for industrialization and

in the Indian context, it is indeed the fulcrum on which, the
future pace of growth and development of this country rests.
Since independence we have multiplied electricity generation by
about 48 times, from 1362 MW in 1947 to over 66000 MW in 1991,
and our unrelenting efforts in this direction continue. However
the demand for power continues to grow at a rapid rate
outstripping the availability of the same. Our efforts to keep
pace with the demand put heavy burden on our limited resources,
and relatively cheaper energy sources, for achieving self
sufficiency in electricity sector assume high priority. Even
with the capacity additions planned and including the private
sector power projects likely to be put up, totaling to an
installed capacity of 99620 MW at the end of the eighth plan,
the expected shortfall is around 5000 MW.

Bagasse based co-generation for power export to the

Electricity Grid has been a subject of interest in many
countries and specifically so to the government of India. This
interest is born out of the fact, that the sugar plant co-
generation holds the promise of narrowing the ever widening gap
between the power supply and demand at low incremental cost and
with short gestation.

Looking at the power situation in Haryana state, where PAIL

is situated, it is seen that there is an appreciable shortfall

in the installed power generation capacity, even after taking
into account all sanctioned projects, and including the state
share from central sector projects. In Haryana state, peak load
demand is very high in comparison to installed capacity, leaving
a large deficit to be managed from other resources.

It is under this context that sugar plant co-generation,

with its vast potential for the generation of surplus grid
quality power, assumes greater importance. It is estimated that
the sugar plant co-generation, if implemented in right earnest,
can augment the national grid capacity by 3500 MW at the end of
the eighth plan. Estimated deficit will actually be higher
because of delay in the commissioning/implementation of a few of
the projects. State Electricity Boards should only be happy to
take power from the co-generating sugar factories.

The exciting prospects of tapping the vast potential in the

sugar mills, has caught the attention of the power planners in
the country for the economical way of augmenting the grid power
and that of the sugar mill managements, for the newly opened up
business opportunities in the field of private power generation.
The task force for the formulation of National Programme on Bio-
Mass based co-generation in India has estimated the potential of
surplus exportable power from the sugar industries to be around
3500 MW. The task force in its report, has addressed all the
present constraints for commercially exploiting the co-
generation potential in the sugar plants, and has recommended
clear policy interventions/fiscal incentives to over come those
constraints. The Ministry of Non-conventional Energy Sources,
Government of India, seized of this matter, has announced a lot
of incentives for the setting up of the co-generation plants in
sugar mills.

Realizing the good potential available for co-generation in
their factory, and considering the thrust given by the
Government of India to this national endeavor, of exploiting the
renewable bio-mass sources of energy for the production of grid
quality power, the progressive management of M/S PAIL have
decided to implement co-generation along with the capacity
expansion of the mill.

As the first step towards this goal of implementing the co-

generation project, the mill management has appointed M/S
Connect consultants (India) Pvt. Ltd., New Delhi, as the
consultants for the preparation of the Detailed Project Report
for this bagasse based co-generation project.

The subsequent sections of the report provides the details

of the envisaged scheme, description and the layout of the
plant, manpower requirements, cost estimate and the financial
analysis. This report is prepared on the guidelines provided by
the Ministry of Non-Conventional Energy Sources, of the
Government of India.

The operation of M/S PAIL will be started in the fag end

of crushing season of 1995-96. The PAIL is a subsidy of
Piccadily group. Piccadily has an excellent past track record
and is making profit continuously during the last ten years. It
is worth mentioning here that the market value of the shares of
Piccadily is Rs. 10/- each for cash at par aggregating Rs.
1320.00 Lakhs.

The management of the mill, which lays great emphasis on

the performance improvement all around, has rightly embarked on
a comprehensive programmes for sugar cane development, like
introduction of early varieties, fertilizer application, plant
protection, ratoon management, irrigation, so that adequate cane
availability is ensured with the expansion of the crushing
capacity to 3500 TCD in first phase and 5000 TCD in second phase.

With the above background, of the overall present operating

condition of the plant, the discussion in this section are
confined to the steam and power systems, that are of interest to

M/S PAIL like any other sugar mill is proposing to generate

its own electrical and thermal energy for production of sugar.
Mill has two numbers of 35.0 TPH boilers operating with outlet
steam parameters of 45.0 Kg/ & 440 Degree C for meeting
complete motive and process steam requirements at existing
crushing capacity of 2500 TCD.
The captive power will be produced by existing two, 3.0 MW
B.P. Turbo-Generator sets, having inlet parameters as 43.0
kg/ & 440 Degree C. These Turbo-Generator sets will
generate power at 1800 V, but the mill requirement is at 415 V,
thus a step down transformer will be used. The captive power
requirement of the sugar mill at the crushing capacity of 2500
TCD is about 4.0 MW which will be generated by existing turbines
at the steam consumption rate of 8.0 kg/KWhr. The captive steam
requirement will be met by the exhaust steam at 1.5 kg/
from these turbines. Separate PRDS is provided to meet the steam
requirement of the centrifugal and sulphur melting etc at 7.0

Both the boilers in the existing system are dumping grate

type and are provided with airpreheaters and economizers. The
steam to bagasse ratio of these boilers is 2.25. The
instrumentation provided on boilers, Turbo-Generator sets and
other auxiliaries are adequate for efficient operation of the
sugar mill.

The Proposed Capacity Expansion

The sugar mill is designed in such a way that it could

expand its crushing capacity to 3500 TCD in first stage and 5000
TCD in second stage. This design also keeps the possibility of
exporting surplus cogenerated power at various stages of
expansion in mind.

There are four mills in the existing sugar mill system,

each driven by a separate electric motor. Two of these four
motors are of 250 HP and remaining are of 350 HP. The rating of
existing motors indicate the future plan of expansion to 5000
TCD. These motors will be under utilized at the existing
crushing rate.
It is planned to retain existing milling tandem and by
adding equipment like GRPF etc on the same mills the crushing
will be increased to 5000 TCD in stages. One of the major aim of
modernization is to achieve and maintain the process steam
consumption down to 44 % for boiling house needs and 3 % at 7.0
kg/ steam for centrifugals etc. To achieve this, it is
planned, to add more evaporator bodies, continuous pans and to
effectively use vapor bleeding for juice heating and pan boiling.

The first stage of expansion will lead to a crushing

capacity of 3500 TCD. This expansion will increase the mills
process steam and power requirement. To meet the new
requirements and to properly utilize the available bagasse a new
high pressure boiler of capacity 50.0 TPH with outlet parameters
as 65.0 kg/ & 485 Degree C will be installed. The capacity
of this boiler is decided keeping the future expansion in mind.
A B.P. 5.0 MW Turbo-Generator set will also installed to
generate power for captive use and generate excess power for
export to the grid. This turbine will generate 5.0 MW of power
at a steam consumption rate of 7.2 kg/KWHr. This turbine will be
back pressure type keeping the future process steam requirement
in mind.

The second stage of expansion will lead to a crushing

capacity of 5000 TCD. This expansion will again increase the
mills captive process steam and power requirement. To meet the
new requirements and to properly utilize the available bagasse a
new high pressure boiler of capacity 50.0 TPH with outlet
parameters as 65.0 kg/ & 485 Degree C will be installed.
The capacity of this boiler is decided to completely consume the
available bagasse and is sized at 50.0 TPH remembering the fact
that the identical boilers will simplify the net system
operation and maintenance. A 12.5 MW Condensing Extraction Steam
Turbo-Generator set will also be installed at this stage for
generating excess power for export to the grid. This will be a
stand alone system which will supply power only for export. The
steam consumption rate of this turbine will be 8.77 kg/KWHr at
7.0 kg/ extraction, 6.21 kg/KWHr at 1.5 kg/ extraction
and 4.17 kg/KWHr at condensing pressure.


Management of mill have found that it fits well to go in

for co-generation simultaneously with expansion. Typically an
ideal co-generation plant in a sugar factory is one which takes
care of both steam and power requirement of factory. By
proceeding with both expansion and co-generation together, there
are definite advantages like, planning for common
infrastructure, planned addition of boilers and turbo-generator
set of suitable capacities.

At the crushing capacity of 3500 TCD the mill will

cogenerate surplus power of about 4.94 MW for export. The
captive requirement at this stage will be a net of 6.06 MW
which includes 5.44 MW of sugar mill’s requirement and 0.625 MW
of co-generation plant’s requirement. At this stage mill will
have two 3.0 MW Turbo-Generator sets and one 5.0 MW B.P. Turbo-
Generator set generating a total of 11.0 MW. The power generated
by 5.0 MW Turbo-Generator set will be at 11 KV. The power from
two 3.0 MW Turbo-Generator sets at 1800 V and a part of the
power, about 0.062 MW, from 5.0 MW Turbo-Generator set at 11 KV
will be stepped down to 415 V for meeting the captive power
At the crushing capacity of 5000 TCD the mill will
cogenerate surplus power of about 11.20 MW for export. The
captive requirement at this stage will be a net of 9.105 MW
which includes 8.215 MW of sugar mill’s requirement and 0.89 MW
of co-generation plant’s requirement. At this stage mill will
have two 3.0 MW Turbo-Generator sets, one 5.0 MW B.P. Turbo-
Generator set and one 12.50 MW Condensing Extraction Steam
Turbo-Generator set generating a total of 20.3 MW. The power
generated by 5.0 MW and 12.5 MW Turbo-Generator sets will be at
11 KV. The power from two 3.0 MW Turbo-Generator sets at 1800 V
and a part of the power, about 3.105 MW, from 5.0 MW Turbo-
Generator set at 11 KV will be stepped down to 415 V for meeting
the captive power requirements.

The foregoing clearly proves decision of the mill

management to go in for co-generation along with expansion will
result in proper planning for equipment capacities and reduction
in over all capital investment.

Co-generation is generation of electrical and thermal

energy (through process steam) simultaneously by an industry.
The sugar manufacturing process requires steam at low
temperature and pressure and electricity for various operation
in the mill. Currently low pressure bagasse fired boilers are
used in sugar mills to generate steam at low temperature and
pressure. This steam is first run through various Back
Pressure(B.P.) turbines to generate power, run mill and operate
fiberizor. Exhaust steam at about 1.5 Kg/ is available from
various turbines for process use. High pressure process steam at
about 7.0 Kg/ can be directly extracted at the inlet or at
suitable points from power turbines. Thus generation of power
and process steam makes sugar mill self sufficient during
crushing season and for achieving this part of generated bagasse
is burned.

As is known from Carnot cycle, high temperature cycles are

essential for efficient utilization of input heat. Due to lack
of interest and proper guideline for buying surplus power, sugar
mills were refraining from optimizing their power generation
system. Recently a number of State Electricity Boards have
announced their policy & guideline for buying surplus co-
generated power through different schemes. This has created a
conducive environment for co-generating surplus power. To
improve the cycle efficiency steam generation has to be at high
temperature and corresponding pressure, but available material
technology limits the highest temperature attainable in a cycle.
In the case of sugar mill co-generation, availability of bagasse
for burning, limits the capacity of the high pressure boilers.
The design temperature of high pressure steam is also
dictated by the available turbine designs. Temperature up to 400
Degree C require the normal carbon steel in the turbine design
but alloy steel has to be used for inlet temperatures higher
than 400 Degree C. The material requirement becomes still
critical for inlet temperatures above 500 Degree C. Keeping
these facts and thermodynamics of cycle in mind the most
economical boiler pressure & temperature works out to be 65.0
Kg/, 485 Degree C. This pressure and temperature becomes
63.0 Kg/, 480 Degree C by reaching the turbine inlet.

High pressure and temperature steam can be optimally

utilized by using in a condensing turbine. Steam for process
use can be extracted from the suitable points at intermediate
stage from condensing turbine in the desired quantity.


The feasibility study analyzed various cases, like

* The condensing extraction steam turbine(CEST)

* The straight condensing steam turbine(SCST)
* The back pressure steam turbine(BPST)

and schemes with,

* Completely new high pressure boilers

* A combination of existing boilers and turbo generating sets
and new high pressure boilers and corresponding Turbo-
Generator sets
Following facts were carefully scrutinized in relation to
above options-

* Existing mill and equipment are relatively new

* Constraint on capital cost
* Thermodynamics of total cycle

Finally the scheme with a combination of existing system

and new high pressure boilers, a new B.P. Turbo-Generator set
and a new Condensing Extraction Steam Turbo-Generator set was
found most suitable.


The proposed co-generation system is split into following

three systems -

The schematic of PAIL’s co-generation configuration is

given in Figure 3.1.

The first system comprises of the two existing 35.0 TPH,

45.0 kg/, 440 Degree C boilers and both of 3.0 MW B.P.
Turbo-Generator sets. This system basically caters to the sugar
plants steam & electricity requirement at the crushing capacity
of 2500 TCD.

The second system comes into picture at the crushing

capacity of 3500 TCD and consists of a new high pressure boiler
of 50.0 TPH capacity at 65.0 kg/, 485 Degree C and one 5.0
MW B.P. Turbo-Generator set. The exhaust from the two 3.0 MW
Turbo-Generating sets and one 5.0 MW Turbo-Generator set meets
the mill's process steam requirement at 3500 TCD. A part of
power generated by the 5.0 MW B.P. Turbo-Generator set is
available in surplus for export to the grid.

The third system that is stand alone, comprises of a 50.0

TPH, 65.0 kg/, 485 Degree C boiler and one 12.5 MW
Condensing Extraction Steam Turbo-Generator set. This system
uses the remaining bagasse for steam production at a crushing
capacity of 5000 TCD.


Plant will be operating during the crushing season using

bagasse as fuel.

Crushing capacity of the plant will be 5000 TCD eventually,

but most of the plant design calculations are done on the basis
of 3500 TCD capacity which plant will achieve within few
seasons. Already two boilers of 35.0 TPH, 45.0 Kg/, 440
Degree C and two back pressure Turbo-Generator sets of 3.0 MW
capacity each are bought to meet the captive requirements at
2500 TCD crushing capacity.

A 5.0 MW B.P. Turbo-Generator set will be added to the

plant keeping the process steam requirement at 5000 TCD
capacity in mind. This Turbo-Generator set will co-generate
surplus power at crushing capacity of 3500 TCD.

The span of crushing season varies from 160 to 180 days.

Crushing season starts in the month of October and ends in the
month of April.
About 30% bagasse is generated on cane. This bagasse has
50% moisture in it.

The average quantity of fibre on cane crushed is about

14.5% which varies from 13.5% to 15% during season.

All the drives in the mill are Electric Motors, except

fiberizor. Fiberizor is driven by a 3.0 MW B.P. Turbo-Generator

Total steam consumption of the plant is about 47% on cane,

out of which 44 % is at 1.0 Kg/, 120 Degree C and 3 % at
about 7.0 Kg/ Losses in steam system are included with
high pressure steam.

Both 3.0 MW Turbo-Generator sets are retained in the

design of co-generation system for exporting surplus power.

The existing two boilers of 35.0 TPH, 45.0 kg/, 440

Degree C are also retained in the new design of co-generation
system. These boilers have steam to bagasse ratio of about 2.25
and will continue to give this performance for their entire
life, with the inlet feed water temperature of 105 Degree C at
the entry of economizer.

The proposed new boilers of 50.0 TPH shall be with the

steam parameters of 65.0 kg/, 485 Degree C at the boiler
outlet. With these steam parameters, new boilers will have a
steam to bagasse ratio of 2.20.

The pressure and temperature requirements of process steam

at the consumption points as 1.0 Kg/, 120 Degree C for the
sugar plant, the back pressure or the extraction pressure is
taken as 1.5 Kg/ to meet the pressure losses in the pipe.
The superheated steam extracted at 1.5 kg/ and temperature
of about 170 Degree C is first brought down to 120 Degree C.

The 3.0 MW Turbo-Generator sets generate power at 1800 V

which is stepped down to 415 V for captive power requirement.
The 5.0 MW Turbo-Generator set will generate power at 11 KV,
part of this power will be stepped down to 415 V to meet captive
power requirement at 5000 TCD crushing capacity and remaining
power will be as such exported to the grid. The power generation
by the Condensing Extraction Steam Turbo-Generator set will be
at 11 KV. All the power from this Turbo-Generator set will be
stepped up to 33 kV for export and will be synchronized with the

Steam Balance

With the implementation of the co-generation and the

expansion programs the plant’s Steam and Condensate balance at
5000 TCD will be as shown in Figure 3.2. The process steam
requirement with 47% on cane comes out to 74.8 TPH for the cane
crushing rate of 159.1 TPH (3500 TCD in 22 Hours). Out of this
70.0 TPH is required at 1.5 kg/ and the balance of 4.8 TPH
is required at 7.0 kg/

The existing 35.0 TPH boilers, generate 54.0 TPH of steam

to be fed to the three existing 3.0 MW B.P. Turbo-Generator
sets. The 1.5 kg/ exhaust steam from these turbines is
taken to the plant's 1.5 kg/ process steam header. The two
3.0 MW Turbo-Generator sets assigned for power will be run at
their full capacity, consuming 48.0 TPH of 43.0 kg/ steam.
The fiberizor turbine will consume 6.0 TPH of 43.0 kg/
steam to generate 0.75 MW of power.
The balance of the process and the deaeration steam
requirement of 20.4 TPH (70.0 + 4.4 - 54.0) will be met by the
50.0 TPH boiler. Because of the availability of excess bagasse,
the new boiler will produce 36.0 TPH steam to meet complete
requirement of 5.0 MW B.P. Turbo-Generator set. The process
steam requirement of 4.8 TPH at 7.0 kg/ will be taken
through PRDS. The remaining 10.8 TPH (36.0 - 20.4 - 4.8) will go
back to boiler as feed, at a crushing capacity of 3500 TCD. The
50.0 TPH boiler is selected at this stage keeping the future
expansion in mind.

Similarly at the cane crushing rate of 227.27 TPH (5000 TCD

in 22 Hours) the process steam requirement with 47% on cane
comes out to 106.8 TPH. Out of this 100.0 TPH is the required at
1.5 kg/ and the balance of 6.8 TPH is required at 7.0

The existing 35.0 TPH boilers, generate 57.0 TPH of steam

to be fed to the three existing 3.0 MW B.P. Turbo-Generator
sets. The 1.5 kg/ exhaust steam from these turbines is
taken to the plant's 1.5 kg/ process steam header. The two
3.0 MW Turbo-Generator sets assigned for power will be run at
their full capacity, consuming 48.0 TPH of 43.0 kg/ steam.
The fiberizor turbine will consume 9.0 TPH of 43.0 kg/
steam to generate 1.12 MW of power. The 5.0 MW B.P. Turbo -
Generator set will be running at full capacity consuming 36.0
TPH of 63.0 kg/ of steam. This will fetch 36.0 TPH of
exhaust steam at 1.5 kg/

The balance of the process steam requirement of 13.9 TPH

(100.0 + 6.9 - 57.0 - 36.0) will be met by the new Condensing
Extraction Steam Turbo-Generator set. The availability of excess
bagasse leads to installation of another 50 TPH boiler and
proper utilization of earlier erected 50.0 TPH boiler. The high
pressure steam from these two boilers is fed to 12.5 MW
Condensing Extraction Steam Turbo-Generator set, the quantity of
extraction being 20.7 TPH. Out of 106.8 TPH total process steam
requirement 6.8 TPH is at 7.0 kg/, which will be suitably
extracted from Condensing Extraction Steam Turbo-Generator set.
With the above extractions and exhaust flows this Turbo-
Generator set will generate about 9.3 MW of power.

Condensate and Water Balance

A total steam quantity of 79.2 TPH is required to meet the

process steam requirement of 74.8 TPH and deaerator steam
requirement of 4.4 TPH at the crushing capacity of 3500 TCD. The
process steam supplied to the juice heaters is returned back as
condensate. The process steam supplied to the evaporator bodies
is also taken as condensate return depending upon its
cleanliness. About 10.8 TPH of steam at 1.5 kg/ will be
available as a return to boiler from the exhaust of 5.0 MW

A total steam quantity of 113.7 TPH is required to meet the

process steam requirement of 106.8 TPH and deaerator steam
requirement of 6.9 TPH at a crushing capacity of 5000 TCD. Other
than steam from juice heaters and vapor bodies, about 26.2 TPH
of condensate will be available from 12.5 MW Condensing
Extraction Steam Turbo-Generator set's surface condenser. This
condensate is sent to condensate storage tank.
The difference in the boiler feed water requirement and
condensate return will be filled by the feed from vapor
condensate tanks or the DM water storage tank. The mixed feed is
supplied as boiler feed water in the quantity of 91.0 TPH at the
crushing capacity of 3500 TCD and 141.3 TPH at the crushing
capacity of 5000 TCD.
Bagasse Balance

With the crushing capacity of 159.1 TPH (3500 TCD in 22

Hours), and with the bagasse generation at the rate of 30% on
cane, the bagasse generated will be 47.73 TPH (in 22 Hours).
About 1.72 TPH of fine bagasse dust known as bagacillo, is
separated through a sieve arrangement, for mixing with the
clarifier mud for filteration in the vacuum filters. The balance
of 48.01 TPH of bagasse is taken to the bagasse storage yard,
from where the bagasse will be fed to the boilers through a
reclaimer. About 1.46 TPH (this quantity and bagacillo together
will be 2% of the bagasse produced) is set aside for losses and
to meet the additional fuel requirement for the start up of the
boilers. A net usable amount of about 40.82 TPH will be
continuously fed to the operating three boilers through bagasse
conveyors. About 3.73 TPH bagasse will be left as surplus.

With the crushing capacity of 227.27 TPH (5000 TCD in 22

Hours), and with the bagasse generation at the rate of 30% on
cane, the bagasse generated will be 68.18 TPH (in 22 Hours).
About 2.44 TPH of fine bagasse dust known as bagacillo, is
separated through a sieve arrangement, for mixing with the
clarifier mud for filteration in the vacuum filters. The balance
of 65.74 TPH of bagasse is taken to the bagasse storage yard,
from where the bagasse will be fed to the boilers through a
reclaimer. About 2.1 TPH (this quantity and bagacillo together
will be 2% of the bagasse produced) is set aside for losses and
to meet the additional fuel requirement for the start up of the
boilers. A net usable amount of about 63.64 TPH will be
continuously fed to the operating four boilers through bagasse
conveyors. At the sugar plant crushing capacity of 5000 TCD
there will be no excess bagasse left as surplus during season
as, the co-generation system is configured for optimum power
generation at this stage. Figure 3.3 gives the bagasse balance
for the sugar mill.

Power Balance

The gross power generation in the mill, with the co-

generation system working at the crushing capacity of 3500 TCD
will be 11.0 MW. The power requirement of the sugar
manufacturing process side of the 3500 TCD crushing capacity
plant for running various auxiliaries will be 5.44 MW. The total
power requirement of the first new high pressure boiler for co-
generation, the B.P. Turbo-Generator set and all other
auxiliaries of the co-generation system is estimated to be 0.62
MW. The net exportable power will be 4.94 MW at the bus.

The estimated power generation in the mill at the crushing

capacity of 5000 TCD will be about 20.3 MW. The estimated power
requirement for the mill at this stage will be 8.21 MW. The
total power requirement of the second new high pressure boiler
for co-generation, the new Condensing Extraction Steam Turbo-
Generator set and all other auxiliaries of the co-generation
system is estimated to be 0.89 MW. The net exportable power will
be about 11.2 MW at the bus. The Figure 3.4 gives the power
balance for the sugar mill with the installation of the co-
generation plant and after the completion of the expansion.

The proposed co-generation plant for M/S Piccadily Agro

Industries Limited will have, a gross power generation of 11.0
MW at a crushing capacity of 3500 TCD and 20.30 MW at a crushing
capacity of 5000 TCD. The co-generation scheme will have a
combination of existing boilers & Turbo-Generators and one new
high pressure boiler of 50.0 TPH capacity & one B.P. Turbo-
Generator set of 5.0 MW capacity at a crushing capacity of 3500
TCD and another new boiler of 50.0 TPH capacity & one Condensing
Extraction Steam Turbo-Generator of 12.5 MW at a crushing
capacity of 5000 TCD. Here we will discuss only the new
equipment installed or will be installed for co-generation at
various stages.

First stage of co-generation plant will consist of one

bagasse fired boiler of capacity 50.0 TPH coupled to one B.P.
Turbo-Generator set of 5.0 MW capacity. The steam parameters at
the outlet of the boiler superheater will be 65.0 kg/ and
485 Degree C. The turbine throttle valve inlet pressure and
temperature, will be 63.0 kg/ & 480 Degree C and difference
in the boiler outlet parameters and turbine inlet parameters
takes care of the losses in the piping.

Second stage of co-generation plant will have one more

bagasse fired boiler of 50.0 TPH coupled to one Condensing
Extraction Steam Turbo-Generator of 12.5 MW capacity. The steam
parameters at the outlet of the boiler will be same as stage one
but the turbine in second stage will have steam extraction of
about 6.82 TPH at 7.0 kg/ and about 16.0 TPH at 1.5
kg/ The remaining steam, will go to the surface condenser
as exhaust.
In addition to the main power generating equipment, the
plant will be complete with the necessary auxiliary facilities
such as fuel storage and handling system, condensate and feed
water system, cooling water system, electrical system including
power evacuation facilities, ash handling system, compressed air
system and fire protection system.

Steam Generator

The steam generating system for the co-generation plant

will consist of two bagasse fired boiler with all the
auxiliaries. Each boiler shall be of semi-outdoor type, and
shall be of bi-drum, natural circulation, balanced draft,
radiant furnace design with two stage superheaters. The boiler
shall be designed with water cooled membranes/fin welded and the
refractory work in the boiler shall be kept to the barest
minimum possible. The rating of each steam generator shall be
50.0 TPH at the superheater outlet with the steam pressure and
temperature of 65.0 kg/ and 485 Degree C, when supplied
with the feed water at a temperature of 105 Degree C.

The boiler shall be designed for 100% bagasse firing and

there shall be no support fuel. The firing system of the boiler
shall comprise of continuous ash discharge traveling or dumping
grate, variable speed rotary feeder and pneumatic spreaders. The
bagasse feeding system shall include the bagasse storage silo in
front of the boiler with the storage capacity of at least for
ten minutes at MCR requirements. Appropriately designed feeders,
with variable speed drives, suitable for boiler combustion
control operation shall be provided.
The boiler convection shall be of multiple pass, baffled
type construction formed by an array of tubes connecting the
steam and water drum. The entire boiler block shall be GI/Steel
cased and provided with adequate buckstays designed to take over
and under pressure in the furnace.

The superheater provided shall be pendant type vertically

suspended type located in the first convection pass of the
boiler. It shall be designed to achieve rated steam temperature
at maximum continuous rating. The desuperheating system
(attemperator) shall be located in between the two stages of the
superheaters, and shall be either spray type, with the
condensate of steam from the drum used as spray water, or
surface water. The tolerance of the superheater outlet shall be
+5 to -5 and controlled over the operating range of boiler.

The boiler shall be provided with one bare tube in line

construction type economizer to utilize the flue gas heat to
raise the feed water temperature and one tubular flue gas air
preheater to recover heat from the flue gases to heat combustion

The boiler shall be designed to operate under balanced

draft conditions and suitable ID and FD fans driven by electric
motors are to be provided. The fan capacities, capacity margins
and the margin in the head shall be adequate and in line with
the standard practices followed. The fans will be dynamically
balanced and operate without undue vibrations. High pressure
secondary air nozzles are to be provided in number of rows in
the front and rear walls to create adequate air turbulence,
temperature and time for the complete combustion of volatile
matter released from the bagasse.
The boiler design shall have adequate number of soot
blowers for effective cleaning of the superheaters and
convection bank tubes. The Drawing No. 4-785212-1 gives the
scheme for steam generator air and flue gas system.

The boiler shall have a dust collector (Mechanical Multi

cyclone type or Electro-Static Precipitator) to reduce the dust
leaving the boiler to a suitable level. Induced draft fan is
designed and sized to take care of additional draft loss in the
dust collector.

The boiler shall be provided with microprocessor based

instrumentation and control system.

Steam Turbine & Auxiliary System

The Piccadily Agro Industries Limited's co-generation

scheme/project envisages the addition of one 5.0 MW Turbo-
Generator set at the crushing capacity of 3500 TCD and another
one 12.5 MW Condensing Extraction Steam Turbo-Generator set at
the crushing capacity of 5000 TCD. The 5.0 MW turbine will be a
single casing, impulse reaction, back pressure type with back
pressure of 1.5 kg/ The 12.5 MW turbine will be a single
casing, impulse reaction, condensing extraction type with
controlled extraction of 6.8 TPH at 7.0 kg/ and
uncontrolled extraction of about 13.9 TPH at 1.5 kg/, rest
of the steam goes to condenser at 0.1 kg/

The steam inlet into the turbines is through emergency stop

and control valves actuated by hydraulic cylinders and
controlled by the governing system. The extraction points on the
turbine are located such that the pressure of steam after the
external control valve shall be 7.0 kg/ and for the
pressure after the internally controlled valve shall be 1.5
kg/ Quick closing non-return valve shall be provided on
the extraction lines. The exhaust from the CEST-G set goes to a
surface condenser operating at 0.1 kg/ The turbine shaft
sealing system shall consist of labyrinth packing and shall be
sealed with steam. The sealing steam escaping the outer packing
boxes shall be condensed in a gland steam condenser.

For the Turbo-Generator sets the control and lube oil

system shall be separate. The lube oil system for each turbine
shall meet the requirements of the gearbox and turbine. The
forced feed lubrication system shall consist of main oil pump,
auxiliary pump with automatic switching at start-up and when
main oil pump is not supplying oil at desired pressure, two
water cooled oil coolers of sufficient capacity and one set of
oil filters. The auxiliary oil pump shall be D.C. motor driven.
A common oil storage tank of adequate capacity with suction
filters, vapor exhaust fan, etc. shall be provided. Necessary
oil pressure reducing valves for catering to the lube oil
requirements, orifices and sight flow glasses shall form part of
the oil system. One centrifugal oil purifier for each of the
Turbo-Generator set shall be provided. The Drawing No. 4-785212-
2 gives the oil system scheme, applicable for the proposed

Each of the Turbo-Generator set shall be provided with a

user friendly modern governing system that shall be user
configurable in the field. The safety system of the Turbo-
Generator set shall be designed to protect the Turbo-Generator
set against inadmissible operating conditions such as, rotor
over speed, high shaft axial displacement, low lube oil
pressure, low control oil pressure, high condenser pressure and
high vibrations.
The reduction gear boxes between the turbine and the
generator shall be designed with a minimum service factor of
1.3. It shall be capable of transmitting the maximum rating of
the turbine and shall withstand 20% over speed over a period of
a minimum of five minutes. The gear box and coupling shall meet
the requirement of AGMA standards.

Condenser and Auxiliary Cooling Water System

The condenser system of the 12.0 MW Turbo-Generator set

consist of a surface condenser with divided water boxes, with
each section amenable for cleaning independently with the
turbine load reduced. One starting ejector capable of pulling 60
% vacuum in twenty minutes and one main operating ejector of two
stag twin element type with inter and after condenser shall be
provided. The hotwell level control system operating through the
two control valves in the discharge and in the recirculating
condensate lines shall ensure that adequate net positive suction
head is available for the condensate extraction pump. The two
condensate extraction pumps, one for working and another for
standby, shall handle the condensate from the hotwell through
the ejector condensers, gland steam condenser and to the
condensate storage tank. The Drawing No. 4-785212-3 gives the
scheme of steam and condensate system for 12.5 MW condensing

The general scheme of Cooling water system is given in

Drawing No. 4-785212-4. This cooling water system caters to the
cooling water requirements of the condenser of the Turbo-
Generator set and the auxiliaries of the steam generator. A
three cell , induced draft cooling tower will be in operation to
meet the cooling water requirements. The hot water returning
from the condenser and Turbo-Generator set and boiler
auxiliaries are cooled in cooling tower designed for a cooling
range of 10 Degree C and an approach of 5 Degree C while
operating under the atmospheric wet bulb temperature of about 27
Degree C.

Raw water from the bore well will be drawn, as is being

presently done to meet the requirements of sugar plant and will
be stored in the raw water tank for the purpose of meeting the
makeup required for the cooling tower and that for the DM water
plant. There are two cooling tower makeup water pumps one
working and one remaining as standby, supply the raw water to
the cooling water forebay. From the forbay water flows into the
suction of the cooling water pumps. There will be four cooling
water pumps each with adequate head required to meet the
pressure drop in the entire circuit. Out of the four pumps,
three will be in the operation to meet the complete requirement
of the condenser as well as the auxiliaries of the Turbo-
Generator set and steam generator and one will remain as
standby. Necessary stop locks and springs will be provided in
the cooling tower forbay.

The outlet from the cooling water pumps is conveyed to the

surface condenser and to the auxiliaries of the Turbo-Generator
set and the boiler through mild steel buried pipes. Similarly
the hot water from the condenser as well as that from the
auxiliaries will be conveyed to another mild steel pipe and to
the cooling tower and appropriately distributed to the three
cells at the top. The buried steel piping carrying the cooling
water will be internally painted as well as externally protected
against corrosion. It is to be noted that the final optimum size
of the pipes would be arrived at only after the optimization
study of the cooling water system being done at the detailed
engineering stage of the project.
Cast iron gate valves as well as butterfly valves shall be
appropriately placed at the pump inlet and outlet, condenser
inlet and outlet at the cooling tower hot water inlet, etc..
Suitably sized rubber expansion joints will be provided in the
piping network to facilitate dismentaling , installation of
valves and to take care of any misalignment/expansion of the
piping. Automatic air release cum vacuum breaker valves, manual
vents/drain valves will be provided in the condenser cooling
water system.

To prevent/minimize the growth of algae in the cooling

water system chlorine dosing is proposed. Provision will be made
for shock dosing at 3.0 PPM or continuous dosing at 1.0 PPM.
Adequate number of one tonne capacity chlorine cylinders to meet
fifteen days requirements.

It is envisaged that even for the auxiliaries of the Turbo-

Generator set and the boiler the same cooling water will be
used. Since the make up water available is of good quality and
with proper blow down from the cooling tower the hardness in the
cooling water could be easily maintained less than the
precipitation hardness. Hence no close loop system of cooling
using DM water is suggested for the auxiliaries.

Service And potable Water System

The service water system supplies water to toilets, general

washing, gardening, dust suppression system, make up water for
air conditioning plant etc..To meet the service water
requirements of the co-generation plant, the sugar plant`s
facilities could be extended. Similarly, the potable water
requirements of the new plant shall have to be met by extending
the sugar plant potable water system.
Compressed Air System

The requirement of the compressed air for various

instrumentation and control systems of the proposed co-
generation plant will be supplied by compressors with one set
operating and another set remaining as standby. The air
compressor shall be of reciprocating, non-lubricating type and
shall be provided with the accessories like inter-coolers,
after-coolers, moisture separators, driers, air receiver and
control panel. The common air drier unit shall comprise of 2 X
100 % driers, with one of the driers in operation at any point
of time and the other one on regenaration mode.

Air Conditioning And Ventilation System

The plant control rooms house the controls for the boilers
and Turbo-Generator sets and shall be air conditioned with
window mounted air conditioners. The Turbo-Generator sets and
other buildings shall be provided with suitable exhaust fans or
a combination of supply and exhaust fans.

Fuel Handling System

The co-generation plant proposed for PAIL, depends on the

bagasse generated in the sugar mill for its fuel requirements.
The boilers are designed to burn 100 % bagasse.

The proposed high pressure and temperature boilers are with

membrane wall and minimum refractory are very sensitive to fuel
feed and to ensure steady operation a continuous fuel feed
system should be adopted. The conventional system of feeding the
boiler with the bagasse coming directly from the mill has the
drawback of a complete stoppage of the fuel feed to the boiler,
if and when the mill stops and the occasions are not infrequent.
Even though provision for the back feeding the bagasse on to the
return bagasse conveyors are available, because of human
intervention, there is always time delay and boiler starves for
fuel. To overcome the problem of time delay, attempts have been
made, with good amount of success, to provide a storage silo in
front of the boiler, at least to cater to about ten minutes
requirement, of the fuel at MCR.

The scheme of bagasse handling system for PAIL co-

generation plant is given in Drawing No. 4-785212-6. The scheme
is drag type conveyor system, with a provision of storage
capacity to meet the requirement of boilers for minimum of ten
minutes when running at MCR. The bagasse will be taken to the
storage yard through conveyors and distributed along the length
of the yard through gates and chutes located along the length of
the conveyor. A bagasse reclaimer in the form of a continuous
endless conveyor moving along the length of the storage yard
distributes and feeds the bagasse continuously on to an
underground conveyor. This conveyor rises up and feeds the
bagasse on to another conveyor running in front of the boilers,
above the bagasse storage silos and bagasse is fed to the
storage silos from the conveyor. Any excess bagasse shall be
returned to storage yard through the return bagasse conveyor.
The capacity of the bagasse conveyor shall be 50.0 TPH, adequate
to meet the requirement of the boiler. The operation of the
entire conveyor system shall be controlled from the control room.

Ash Handling System

The ash handling system envisaged now is only for the new
65.0 kg/ high pressure boiler. The ash from the existing
boiler will be continued to be handled in the same way as is
being done presently. The system proposed for the new boiler
shall be mainly dry handling, except for the furnace bottom ash.
The drawing No. 4-785212-7 gives the scheme of the ash handling
system for the co-generation project.

The furnace bottom ash from the hoppers shall be handled by

the water impounded submerged scrapper conveyors, and fed on to
the main belt conveyor. Since this ash will be very hot it is
essential that it is cooled before it is fed on to the belt
conveyors. The other ash collection points in the boiler are
airpreheater hopper and dust collector hoppers. The ash
collected in these two places will be dry and powdery. The ash
discharged from these points through rotary pocket feeders will
be conveyed to the main belt conveyor through screw conveyors.
At the point of discharge of the ash from the screw conveyor on
to the belt conveyor, water sprinklers are provided to suppress
the dust.

The ash silo storage will be adequate for ash generated

during bagasse firing. The ash from the silo will be disposed
off to the ash disposal area through trucks.

Condensate and DM Water System

For the co-generation project at PAIL there will be two

sources of condensate water. The Drawing No. 4-785212-5 gives
the scheme of the Condensate and DM water system proposed for
the co-generation plant. One is from the surface condenser of
Condensing Extraction Steam Turbo-Generator set and the other
one is from the process side of the sugar plant. The condensate
from the sugar plant itself is categorized into two. One is the
condensate of the exhaust steam used in the juice heaters and
evaporators, which is uncontaminated and can be used as such as
boiler feed water.

The other category from the sugar plant is the condensate

of the vapors from the evaporators and the pans. These vapor
condensate are likely to have, at time, traces of sugar and
hence the usage of this condensate as boiler feed water should
be done only after proper monitoring for the quality of

The condensate from the surface condenser is pumped by the

condensate extraction pumps to the condensate storage tank. The
steam condensate from the process is also led into this
condensate storage tank. The make-up either from the DM water
storage tank or from the vapor condensate tanks, depending upon
the quality of vapor condensate, will also be added to the
condensate storage tank. Boiler feed water from this condensate
storage tank will be pumped to the deaerator through transfer
pumps. The deaerator will be equipped with a deaerator feed
water storage tank. The level inside the deaerated feed water
storage tank shall be maintained at a constant set of valve by
controlling the quantum of feed water pumped by the transfer
pumps. The deaerated feed water from the feed water storage tank
will be supplied to the steam generated by means of boiler feed
water pumps. There will be a number of electrically driven feed
water pumps to cater to the new 65.0 kg/ boilers.

To cater to the make-up water requirements of the steam

generator turbine cycle, a demineralized water plant is being
proposed. The DM plant will consist of cation, degasser, anion
and mixed bed ion exchange units along with associated
regeneration system. The DM plant shall have a regeneration time
of 8.0 hours in a day. The source of water for the DM plant will
be from the raw water tanks through raw water pumps. Raw water
from the outlet of these pumps shall be taken directly to the DM
plant. A demineralized water storage tank will be installed in
the DM water area to store the make-up water requirement for the
co-generation plant. Adequate storage of acid and alkali used
for the regeneration of DM plant shall be provided in the DM
plant area. A neutralizing pit for the treatment of the
effluents from the DM plant is envisaged and other
neutralization the effluent will be disposed off into the
existing sugar plant’s effluent disposal system.

Instrumentation And Control System

The plant will be complete with the basic instrumentation

and control system necessary for its safe and efficient

Comprehensive instrumentation and control equipment will be

provided for each component system of the plant. The control of
each unit will be located in the central control room.
Instrumentation will broadly cover the following functions :

* Locals indications by gauges.

* Remote indications through transmitters with facility for
recording of critical parameters.
* Interlock for safety of personnel/equipment.
* Closed loop control system using single loop controllers.
* Status indications.
* Alarm annunciation.

Controls and interlocking will be of electronic type using

microprocessor based hardware. Actuation will be done generally
with pneumatic actuators. Regulation of the turbine will be
through Electro-Hydraulic system.
The microprocessor based instrumentation and control system
is proposed keeping in view the safety, reliability and
availability for comprehensive presentation of plant operation
status, trends and essential operator interaction facility.
Microprocessor based systems have the following inherent
advantages :

* Increased reliability due to use of Large Scale Integrated

(LSI) components.
* Increased flexibility for modification at any stage due to
software configuration capability.
* Better availability due to provision of circuit redundancy
and manual back-up.
* Expendability for future as both hardware and software are
modular in structure.
* High maintainability due to improved self-diagnostic and
display features.
* Ability to include Data Acquisition System and Improved man-
machine interaction with colour graphic CRT control
stations, at a later date.

Transmitters required for the measurement and control will

be of electronic type using solid state hardware. Field signal
transmission will be 4 - 20 mA, two wire system in view of the
following advantages :
* Suitability for long distance transmission.
* Compatibility with computer interface and
* Ease of conversion into voltage signals using simple
Closed loop control system will be provided for steam
generators, Turbo-Generator sets and their auxiliaries with
processor and sensor level redundancy.

The control system will be designed to facilitate manual

operation of the plant from Control Panel. Necessary hardwired
indicators and recorders will be provided on the Control Panel
located in the central control room/rooms.

Both closed and open loop controls for a single equipment

will be integrated in a single microprocessor based system.
Alternatively, closed loop controls will be achieved using
microprocessor based system and open loop controls through
Programmable Logic Controllers (PLC).

All control valves and control damper drives will be of

pneumatic type because of their fast response and ease of

Pneumatic controls will be provided where only local

controls are adequate. Also, turbine local panel, boiler feed
pump panel and circulating water pump panel will be provided
near the respective equipment.

Apart from the basic instrumentation, the turbine will be

provided with the following control system :

* Turbine speed control system.

* Condenser hot well level control system.
* Bently-Nevada based vibration monitoring system.
The following essential control shall be provided for the
steam generators :

* Three element based drum level control.

* Furnace draft control.
* Combustion control.
* Superheater temperature control.
* Deaerator pressure and level controls.

Fire Protection System

The fire protection system for the proposed co-generation

plant will be consisting of :

a. Hydrant system for all the areas of plant.

b. Manual high velocity water spray system for transformers
and turbine lube oil tanks.
c. Deluge system for cable galleries.
d. Portable fire extinguishers in other areas with in the

The installation and the layout of the system will confirm

to Tariff Advisory Committee (TAC) regulations.

The hydrant, water spray and the deluge system shall be

provided with a motor driven pump and a diesel engine driven
stand by pump. Two Jockey pumps will be provided to keep the
water system under pressure. The water for the fire fighting
system shall be taken from the main raw water tank designed with
the capacity required by the TAC regulations.
High, Medium and Low Pressure Steam Systems

The outlet steam from the high pressure boiler at 65.0

kg/ and 485 Degree C will be conveyed through alloy steel
main steam piping to the turbine. Desired number of stop valves,
non return valves and isolating valves shall be suitably placed
in the piping. The piping system shall be complete with
necessary hangers and supports. The steam flow from the boiler
shall be measured by putting steam flowmeter at the individual
boiler outlet.

The medium steam system operates at 7.0 kg/ It starts

from the pressure reducing system(PRDS) at the crushing capacity
of 3500 TCD. The extracted steam from the high/medium pressure
boiler is sent through pressure reducing system to bring the
pressure down to 7.0 kg/, required for sulphur melting
etc.. in the sugar manufacturing process. At the crushing
capacity of 5000 TCD the medium pressure steam system starts
from the externally controlled extraction from the 12.5 MW
turbine. All the medium pressure piping shall be of carbon steel
and shall be designed with valves, specialities and suitable
supports and hangers.

The low pressure steam system at 1.5 kg/ consists of

the exhaust from the existing turbines, exhaust from 5.0 MW
turbine, internally controlled extraction from the 12.5 MW
turbine and a low pressure steam header in the plant area. Steam
shall be tapped of from the header to meet the various
requirements. The major quantum of the steam is taken to the
sugar plant process area to meet the process requirement. All
the piping shall be of carbon steel and designed with valves,
specialities, supports and hangers.

Scheme of electrical generation for proposed co-generation

project shall consist of 1.0 No. 11.0 KV, 50 Hz, 3.0 Phase, 0.8
P.F. alternator of rating 12.5 MW and in addition to, 3.0 Nos,
3.0 MW each alternator and one of 5.0 MW rating. In expansion of
mill 3500 TCD, two alternator of 3.0 MW each, which will
continue to supply sugar plant. After meeting in house
requirements due to expansion and co-generation auxiliary
requirements, plant can export a net power of about 11.20 MW
exportable power. The power shall be stepped up 11/33 KV by a
power transformer shall be paralleled to grid via switch yard of
mill. System will be paralleled with HSEB substation at village
Bhadson which is located at a distance about 1.5 km from the
plant. The Drawing No. 5-785212-1 gives the key single line
diagram for the co-generation project.


Generator shall have nominal ratings of 12.5 MW with

generation voltage of 11 KV, 50 Hz, three phase and at a rated
power factor of 0.8 and with IP 55 enclosure. The machine shall
run at 1500 rpm and shall operate with the voltage and frequency
variation of + or - 10 % and + or - 5 % respectively. The
generator shall be complete with base frame, closed air circuit
water cooled(CAW) cooling system, brush less exciter, automatic
voltage regulator, neutral grounding cubicle, LASCVT(lighting
arrestor & surge capacitor and voltage transformer) panel,
relay, metering and control panel, instrumentation control and
safety devices and other accessories, spares and special tools
that will be required for satisfactory erection and efficient
operation of the station. The generator coupled to the steam
turbine shall be suitable in all aspects for operating in
parallel with grid. The generator shall match with the
respective turbine in respect of speed, over speed, moment of
inertia, overload capacities, coupling and other relevant

The stator and the rotor of the generator shall have class
insulation but the temperature rise shall not exceed the limits
specified for class `B` insulation. The generator shall be
fitted RTDs(min 2 per phase) for thermal protection, space
heaters and temperature indication.

The generator terminals shall be suitable for connecting to

switch gear panel through phase segregated copper/aluminium
busducts. The bus duct will be natural air cooled and air will
be run indoor. The current transformers for metering and
protection shall be provided in the busducts, in 11 KV switch
gear panels and NGR cubicles. The drawing No. 5-785212-2 gives
the protection scheme.

Excitation system & Synchronizing panels

The excitation system shall be of brush less type and shall

be provided with the following features:

* Generator voltage control

* Excitation current control

* Excitation buildup during startup and field suppression on
* Limiter for the under excited range and delayed limiter for
overexcited range

The system shall have facility for manual as well as auto

mode operation and shall have diode protection relays to detect
failure of rotating diodes. The following minimum alarms shall
be arranged for:

* AVR fault

* AVR automatic changeover to manual

* Diode failure

Swinging/ trolley type synchronizing bracket complete with

running and incoming voltmeters, running and incoming frequency
meters, synchronoscope, synchronizing check and guard relays,
synchronizing cut off switch, lamps etc. shall be provided.
Provision for automatic synchronizing device with inputs to
governor control shall be made.

Unit control panel

The unit control panel shall comprise of control and

system, synchronizing system, protective relays, start/stop
system alarm, annunciation and temperature measurement system.
The panels may be split up into control panel, metering panel
and relay panel for convenience. All meters shall be of 144 mm
square type 240 Deg scale. Each panel shall have TVM, ammeters,
voltmeters, frequency meter, power factor meter, KW, KVA and KWH
meters. Recorders shall be provided for voltage, pf, frequency
and KW. All relays shall be of static/micro processor based. The
following minimum protection will be provided for the generator:

* Overvoltage, undervoltage relay

* voltage restrained over-current relay

* Field failure relay

* Reverse power(active& reactive) relay

* Differential protective relay

* Stator earth fault relay

* Rotor earth fault relay

* DC failure trip relay

* Under/Over frequency relay

* Over load relay

* Bearing protective relay

LAVT and NGR cubicles

The LAVT cubicle shall house surge capacitor, potential

transformers (class 3P and 0.5), lighting arresters, busduct
chamber etc. The cubicle shall be complete with necessary
tappings for excitation system. The NGR cubicle shall comprise
of current
transformers(class 0.5 and 5P10), neutral isolating switch,
grounding resistor (unbreakable, corrosion proof, joint less
stainless steel grids).

11 KV Switchgear panel

The broad specification for the 11 KV switchgear panel

shall be as follows:

Rated Voltage : 11 KV, 3 Phase, 50 Hz

Maximum Voltage : 12 KV
Power frequency Voltage : 28 KV rms
Impulse frequency Voltage : 75 KV peak
System Fault level : 500 MVA
Enclosure : IP 5X
Maximum bus bar Temperature : 85 Deg. C
Operating Duty : 0-3min-co-3min-co
Control Voltage : 110 V DC

The 11 KV indoor switchgear board shall be metal clad, free

floor standing, totally enclosed, dust and vermin proof with
draw out type vacuum/SF6 circuit breakers. The board shall
confirm to IS:3427 and the breaker shall confirm to IS:13118.
Each breaker
shall have distinct positions for service, test and isolation
mode and shall have independent earth switch for earthing the
cable side terminals. All panels shall have earth switch with
interlock as safety measure. The panels shall be suitable for
bottom cable entry. The switchgear shall be connected through
phase segregated busducts from the generator phase side
terminals. The panel shall be provided with one (1) incoming
feeder, Two (2) distribution feeders, one (1) outgoing power
export feeder and one (1) spare feeder.
The switchgear panel shall be complete with necessary CTs
and PTs for metering and protection which shall be of cast
resin type confirming to relevant Indian standards. The busbar
in switchgear panel shall be individually protected by busbar
protective relay. The auxiliary transformers feeders shall be
provided with the necessary relays and meters for protection

LT Distribution System

The sugar plant load and co-generation plant load require

power supply at 415 Volt level. In the existing plant this power
is supplied by two 3.0 MW Turbo Generator set and one 5.0 MW
Turbo Generator set. The drawing No. 5-785212-1 gives the LT
distribution schematic for the complete sugar & co-generation

The system shall be designed to ensure reliable supply for

the plant loads without much disturbing the existing
arrangement. Existing bus shall be connected to a bus coupler at
one end which will couple the existing bus to transformer
feeders. All feeders and bus couplers shall be carefully
interlocked to avoid improper paralleling of different supply

Interlock arrangements shall be given to ensure the

following conditions:

* The 415 Volt generators are not paralleled with transformer

* Supply from DG/ EB bus is not paralleled with other sources.

It shall be possible to operate all the sugar plant loads

even when the 415 generators are not operating. This shall be
ensured by operating the 415 Volt transformers while the 3.0 MW
sets are not in service.

The loads shall be distributed in such a way that the

transformers are not overloaded in any abnormal condition.
Parallel operation of two transformers will to tend to increase
the fault current in that bus to unmanageable level. This shall
be handled by providing series reactors (coreless type) with
those transformers or by going in for higher impedance (say 9%
or 10%) transformers.

Capacitors bank shall be connected in the LT panels to

improve the power factor to about 0.95 lagging . The capacitors
shall be of all polypropylene (APP) dielectric type. The banks
may be controlled manually or by using power factor control
One feeder from 415 V DG/EB bus shall be connected to the sugar
plant LT bus for operating the colony lighting loads during off

Distribution transformers and LT panels

The distribution transformers confirming to IS:2026 for

supplying the sugar plant, boiler and other loads shall be as
per the following specification.

Transformer Rating : 2 MVA

Cooling : ONAN
Ratio : 11/0.433 KV
Highest system Voltage : 12 KV
Power frequency Voltage : 28 KV rms
Impulse Withstand Voltage : 75 KV peak
Taps and Range : Off circuit tap changer
+5% to -10% insteps of
2.5 %
Voltage Vector : Dyn 11
Impedance : 6.25 % (10 % if transformers
are paralleled and no series
reactors provided)
Neutral Earthing : Solid Earthing

The distribution transformers shall be protected by over

current and earth fault relays at HV side and Restricted Earth
Fault (REF) at neutral end in addition to in built protective
devices like Buchholz relay, Magnetic Oil Level Gauge (MOG), oil
and Winding Temperature Indicators (OTI &WTI)

The LT distribution panels confirming to latest revision of

IS:8623 shall be dust & vermin proof construction sheet steel
clad totally enclosed, floor mounted, self standing type with
both front and rear access. All panels shall be of single bus
bar type with bottom cable entries.

Motors for co-generation auxiliary loads of rating less

than 100 HP shall be provided with DOL feeders in MCC. Higher
size motors shall be of wound rotor type with automatic
stripping rotor starter or soft starter/ auto transformer
starter depending on starting torque requirements. DOL: motor
feeders shall be complete contactor, over load relay with single
phasing protection and switch fuse units. Motors of higher
ratings shall be protected by motor protection relays.
Switch Yard and Paralleling with Grid

The Co-generation project envisages a maximum power export

of around 11.2 MW which shall be exported to HSEB grid by
stepping up the power to 33 KV through one no 11/33 KV 20 MVA
power transformer. The 33 KV line shall be connected to HSEB
substation at village Bhadson by extending the bus in 33 KV bay.

Proposed 33 KV switch yard shall have single bus

arrangement with one power transformer with control and
protection equipment (breaker, Cts, Pts, LAs, isolators etc.)
CT, PT and TVM for HSEB measurement shall be arranged in the
switch yard. Switch yard
arrangement and other requirements shall be in line with CBIP
specifications. The Drawing No. 5-785212-2 gives the protection
scheme and the Drawing No. 5-785212-3 gives the layout of the
switch yard.

The bus bars shall be formed with 3" IPS Aluminium pipe.
The minimum Phase, Earth, Section and Ground clearances in mm
shall be 915, 610,3000 and 3660 respectively. The switchyard
components will be designed to have a BIL value of 170 KV.

Feeder Protection

The feeders linking the plant substation and the EB

substation shall be protected with directional overcurrent &
earth fault relays. dF/dt relay and low forward power protective
relay shall be provided to protect the system from grid
disturbances and for inter-tripping of EB substation breaker
Power Transformer

The transformer, with a rating of 20 MVA, 11/33 KV, Ynd 1

connected shall be complete with the fitting & accessories like
conservator, MOG, breather, Buchholz relay with contacts for
alarm and trip, pressure relief devices, thermometer pockets,
OTI & WTI, Valves, earthing terminals, cooling accessories,
bidirectional flanged rollers with locking and bolting device
for mounting on rails, air release devices, inspection cover, on
Load Tap Changer (OLTC) with remote tap changer control (RTCC)
panel, marshaling box, etc.

The transformer shall have the following minimum protection

to isolate the equipment during fault conditions:

Over current & earth fault relay

Differential relay
Restricted earth fault protection at HV side
Buchholz relay
Winding & oil temperature indicators
Oil level gauge
Over fluxing protective relay

Lightning Arrestor

lightning arresters rated 30 KV, 10 KA shall be provided at

the HV side of the transformer so as to cover the transformer in
the protection region of the lightning arrestor.

The lightning arrestor shall be heavy duty station class

type, discharge class III, confirming to IEC specification IEC-
Arresters shall be complete with insulating Base, self
contained discharge counters and suitable milli ammeters.

Insulators and structure

Solid core type post insulators of adequate creepage

distances confirming to IS:2544 shall be provided for insulation
and support in switchyard.

The structure shall be made up of hot- dip

galvanized/reinforced concrete and designed to withstand forces
during normal conditions(wind loads and dead load of switchyard
components) and abnormal conditions( short circuit, earth quake


Isolators complete with earth switch, galvanized steel base

provided with holes, solid core type post insulators with
adequate creepage distance confirming to IS:2544, blades made up
of non-rusting material, operating mechanism(gang operated,
manual/ motor charging mechanism) shall confirm to IS:1818. They
shall be of center post rotating horizontal double break type
and consist of 3 poles.

The isolators shall have interlocks with circuit breaker

and earth switch.

Instrument transformers

The instrument transformers and accessories shall conform

to standards specified below :
Current Transformers : IS :2704
Potential Transformers : IS :3156

Instrument transformers shall be mounted on 33 KV class,

sealed porcelain bushings suitable for outdoor service and
upright mounting on steel structures.

Instrument transformers shall be hermetically sealed units

with- in-built provision to dissipate any excessive pressure

Current Transformers shall be of ring type with suitable

construction at the bottom for bringing out secondary terminals.

Circuit Breaker

The circuit breaker and accessories shall be in general

conforming to IEC-56 and IS:13118. The breakers shall be of
Sulphur Hexafluoride(SF6) gas type.

The circuit breaker shall be totally restrike free under

all duty conditions and shall be capable of performing other
duties without opening resistor. Pole discrepancy shall be
within specified limits.

The SF6 gas shall be comply with IEC-376 and be suitable

for use in the switchgear under the operating conditions. The
high pressure cylinders in which the SF6 gas is shipped and
stored shall comply with requirements of relevant IEC standards.

Closing coil shall be suitable for operation at all values

of voltages between 85% and 110% of the rated voltage. Shunt
trip shall operate correctly under all operating conditions of
the circuit breaker up to the rated breaking capacity of the
circuit breaker and at all values of supply voltage between 70%
and 110% of rated voltage.

Safety Earthing System

A safety earthing system consisting of a buried mild steel

conductor earthing grid would be provided for the power plant
building, switch yard and other outlying areas. The earthing
system shall be formed to limit the grid resistance to below 1
Ohm. In the switch yard area, the touch potential and step
potential shall be limited to the safe values. The earthing
design shall be as per IEEE - 80 recommendations.

The buried earthing grid would be connected to earthing

electrodes, buried underground. Neutral point of transformer,
generator and non current carrying parts of equipment, lightning
arresters, fence etc. shall be earthed rigidly. The following
factors shall be considered for earthing system design :

* Magnitude of fault current

* Duration of fault
* Soil resistivity
* Resistivity of surface material
* Shock duration
* Material of earth conductor
* Earth mat grid geometry

All cables would be selected to carry the load current

under site conditions, with permissible voltage drop. In
addition, high voltage cables would be sized to withstand the
short circuit current. The following types of cables would be

Power cables for 11 KV system shall be with single

core/three core aluminium conductor, XLPE insulated, screened,
armoured and overall PVC sheathed confirming to IS :7098

The power cables of 1.1 KV grade shall be PVC insulated,

aluminium conductor, inner sheath PVC taped strip/wire armoured
with outer sheath of PVC compound conforming to IS :1554

The control cables for control/protection/indication

circuit of the various equipments shall be of 1.1 KV grade, PVC
insulated annealed high conductivity stranded copper conductor,
inner sheath PVC taped, flat/round wire armoured with outer
sheath of PVC compound conforming to IS :1554

Battery and battery charger

Common battery, battery charger and DC board unit shall be

provided for substation and power house.

Lead acid stationary battery(110V) with tubular positive

plate, pasted negative plate in hard rubber containers
conforming to IS :1651, for catering to the various DC loads in
power house and substation, complete with vent plugs, acid level
indicating floats, separators, bolts and nuts, cell insulators,
intercell connectors in dry and uncharged conditions.
The battery sizing shall be based on the basis of the
following type of loads :

Momentary load for 1 min.

Emergency load for 2 Hrs.
Continuous load for 10 Hrs.

The battery charger shall be of SCR controlled float cum

boost charging equipment housed in a free standing, floor
mounting cubicle having a degree of protection of IP 31

Lighting System

Good lighting in the substation and power house shall be

ensured to facilitate normal operation and maintenance
activities and at the same time to ensure safety of the working
personnel. Lux levels and glare index shall be as per
recommendations of IS:3646. The lighting system would comprise
of normal and emergency power supplies as described :

Normal AC lighting system

The lighting DB intended for lighting in power house and

substation area shall be supplied from the most reliable supply
source i.e. AC auxiliary supply panel.

The lighting circuit in the normal 1 phase, 240 Volt AC

lighting system would be fed through 415/ 433 Volt, 3 phase, 4
wire lighting transformers connected to the auxiliary
distribution system.
Emergency DC Lighting System

Direct current emergency lights, which shall be supplied

from battery units shall be provided at strategic points in the
power station, switchyard area and in control rooms.

Lighting Protection System

Building lighting protection system shall be provided as

per IS:2309 and Indian Electricity rules. The protection
consisting of roof conductors, air terminals and down conductors
will be provided for the power house structure. Switchyard
equipment shall be shielded against direct lighting strokes by
providing overhead earth wires. Overhead earthing wires shall be
formed to shield all substation equipments with an angle of
shield of about 30 Degree.

AC Auxiliary Supply

AC supplies of single and three phase, are needed in a

substation and plant for internal use for several functions such

* Illumination
* Battery charging
* Transformer tap- changer drives
* Excitation supply
* Power supplies for communication equipment
* Crane
* Breakers/ Disconnect switch, motors
* Fire protection system
* Space heaters in cubicles, generators and marshaling kiosks
* Air conditioning/ ventilation equipment
The design of AC auxiliary supply system must be such that
it ensures continuity of supply under all conditions, as far as
practicable, reliability being the basic requirement. Provision
for supply from minimum three different sources shall be

DC Auxiliary Supply

DC auxiliary supply is required for closing and tripping of

circuit breakers, emergency lighting, control board indications,
etc, which shall be supplied by the DC batteries provided in the
substation and in the power house.

The proposed co-generation Plant at PAIL’s Indri sugar mill

will be located with in the sugar mill complex. The complete co-
generation plant consisting of the boiler, the main power
station building, the auxiliary installations such as the
cooling water system, DM water system and the switch yard shall
be located near the mill. The space available, in the complex is
adequate, for the complete co-generation plant. The Drawing No.
6-785212-1 gives the locations of the various installations. The
co-generation plant is located such that there shall be no
disturbance to the sugar plant operation during the co-
generation plant construction.

At present 2500 TCD two boilers of 45.0 Kg/ pressure,

35.0 TPH are laid out in the plant. In the first phase of
expansion of crushing capacity i.e. 3500 TCD, one more boiler of
50.0 TPH, 65.0 Kg/ & 485 Degree C will be easily installed
next to the existing boilers. In second phase of expansion of
crushing capacity i.e. 5000 TCD, one more boiler of 65.0
Kg/ & 485 Degree C and 50.0 TPH capacity will be added. For
installation of this boiler adequate space is available in the
mill. Existing boilers are of semi out-door design, with just a
roof over the furnace area and the bagasse storage silo. The
boiler operating floor level is around 6.0 meters.

The airpreheater and economizer will be arranged in a

single vertical pass behind the boiler. The airheater is laid
out such that the tube replacement is done easily. The fans and
cyclone dust collectors shall be used. Adequate platforms and
stair ways as required for the operation and maintenance of the
boiler shall be provided. The boiler area will be provided with
approach roads and adequate lighting.

The boiler feed water pumps shall be located below the

boiler operating floor on the ground floor and the feed water
control station shall be located on the boiler operating floor.

A stack of 2000 mm inner diameter at the top is located

near the ID fans. Concrete paving will be provided in the boiler
area with necessary drains and trenches for cables and pipes.

The new Turbo-Generator sets of 5.0 MW & 12.5 MW capacity

and their auxiliaries are located next to the existing Turbo-
Generator sets. The Turbo-Generator operating floor shall be at
about 6.0 meter elevation. The building superstructure will be
of structural steel framing with brick clading and R.C.C. floor
slabs. The building roof will be of pre cast concrete panels on
steel trusses. The turbine and generator foundation will be of
reinforced concrete frame isolated from the building foundation
and the super structure. The condenser of the 12.5 MW Turbo-
Generator with its ejector system and the condensate extraction
pump and oil system console for the Turbo-Generator is located
on the ground floor within the building.

One 20.0 tonne capacity electric overhead traveling capable

of serving the entire length of the building is provided in the
Turbo-Generator building. Three cranes with hook capacity of 5.0
tonne each are also provided for cane unloading. An opening is
provided on the operating floor that serves to take out the
Turbo-Generator components for maintenance. The cables and the
bus duct will run
below the switchgear room or control room as the case maybe.
Similarly the inlet, extraction and the exhaust steam piping
will be run below the operating floor.

The raw water storage tank shall be located next to the

existing boilers, close to the existing tanks. The raw water
pumps shall also be located near the tanks. The DM water plant
shall also be located at the same place. Cooling water pumps
shall also be located in the power house.

The bagasse storage yard will remain in its present

location except that the conveyor from the mill house will be
further extended. Another conveyor elevator traveling in the
opposite direction will feed the bagasse reclaimed from the
storage yard on to the conveyor running in front of the boiler.

The ash handling system consisting of water impounded

scraper conveyors, screw conveyors and belt conveyors will
collect the ash from the boiler furnace hoopers, airpreheater
hoopers, cyclone dust collector hoopers and feed the ash into
the concrete silo located near the new stack. The actual
location of the conveyors and the number of conveyors shall have
to be decided during the detailed engineering of the project.

The distribution transformers are located in the plant

depending on the load centers. The 11 KV switch yard is located
near the power house building. The layout of the switch yard is
given in the Drawing No. 5-785212-3.


The operation of the plant starts with the commissioning.

In broad terms commissioning can be defined as setting the plant
to work safely and on programme. It is necessary to ensure that
all equipment are completely erected before operations begin.
Although this may be considered difficult, the other extreme of
operating a plant with insufficient instrumentation, controls
and alarms is dangerous. Although some compromise can be made
with regard to plant completion, the commissioning procedures
should never compromise personnel and the system safety.

A proper checklist procedure must be draw up, which shall

include all the section of plant and shall take into account,
the contractual responsibilities, the technological relationship
between the various sections, pre-commissioning cleaning
requirements. The checklist procedure helps in the following:

* To ensure that the necessary checks are carried out on each

item of the plant before it is put into commercial service.

* To indicate a contractor's commissioning requirements from

the client or from other contractors.

* To ensure that energy is supplied to an equipment or a

plant when it is safe to do so.
* To facilitate the recording of the progress on the various
commissioning activities.

* To provide a basis for the plant history.

The operation of the cogenerating unit interconnected to

the grid is an activity that must be properly coordinated, with
in the plant as well as with the electricity board's sub-station
to which the plant feeds power. Operation in parallel with the
grid eventually makes the co-generation plant a part of the
HSEB's utility system, and hence the co-generation plant must
assume some of the same responsibilities of HSEB. With this, the
HSEB's local despatch center will need to monitor the incoming
power from the cogenerating plant on a continuous basis.

The operation of a modern high pressure and high

temperature unit demands closely controlled operating
conditions. The unit starts-ups, shut-down and even load
variations must strictly follow the carefully laid down
procedures given in the operation manuals. Generally, the plant
shall be sufficiently instrumented to permit close checks on
such operating parameters as boiler tube and drum metal
temperatures, furnace gas temperatures, turbine expansions,
casing metal temperatures, condenser vacuum etc.

An important feature of the modern power generating plant

is the automatic safety lock-out devices. While sufficient
thought goes into it at the design stage, it remains the
responsibility of the operating staff to ensure that the safety
devices are set correctly and kept in operation.

While safety of the plant and personnel is the foremost

importance in the operation, the efficient operation of the
plant can not be ignored. While operating, it is important to
check the essential parameters of the plant and equipment to
ensure that the plant performance is at the optimum level. Any
variations in the operating parameters or any deviations from
normal performance of the equipment or plant shall have to be
analyzed immediately to diagnose the problem and to take
remedial measures to bring back the plant and equipment to its
original parameters.

The detailed treatise on the operation of the power plant

is beyond the scope of this report. However, two important areas
are highlighted below.

Water chemistry

With the rapid increase in the operating levels of the

steam temperatures and pressures of the modern boilers, ensuring
good quality of water has assumed greater importance.

Pressure at/around 60 kg/ is almost a threshold limit

for water quality and above this pressure additional precautions
are to be taken to ensure that the quality of the feed water
given to the boiler is maintained at acceptable limits. This
aspect deserves much greater attention specifically in a sugar
plant where the chances of contamination of the condensate by
sugar juice is a likelihood. The system envisaged provides for
the direct induction of the safe steam exhaust condensate into
the feed water system but restricts the vapor condensate
induction depending on its quality. Another area of concern
could be the condenser leakage where the condensate gets
contaminated by the cooling water. A routine check up of the
feed water quality during the startup of the plant and also
periodic check- ups result in the elimination of any serious
problem due to water quality.

The modern day power generating system like the one

envisaged for the specific co-generation plant can not be
effectively operated without proper instrumentation and control
system. An effectively designed instrumentation and control
system performs following functions :

* Provides operators with the indication or record of the

instantaneous averaged or integrated value or condition of
the various operating parameters such as temperatures,
pressures, flows, levels, position of switches, currents,
voltages, power etc..

* It also provides at convenient locations either local,

remote or automatic control system to control the above
operating parameters and gives alarms and even ensures
automatic trip outs, when operating parameters reach beyond
the normal range into the unsafe or undesirable range.

Instrumentation is increasingly taking over many functions

of the operator. Its response to changing and transient
conditions, its ability to anticipate, detect and discriminate
faulty conditions and act accordingly is quicker and for more
accurate if well designed. With the ability of the
microprocessor based systems to include data acquisition and
processing capabilities, the system's ability, to log and
process periodically the plant data, is also far superior and
permits more timely corrective action. Presently some of the
responsibilities of the operation section are taken over by good
instrumentation. The most difficult thing to be encountered in
the initial stages of plant operation is the necessity to
develop in the operation staff a faith in the instrumentation.
Many times the operators first response to a meter, reading too
high or too low, is to disbelieve it on the ground that it may
be reading incorrectly. If instruments are not checked and
calibrated frequently an operator will delay taking corrective
actions. This problem could be solved by:

* Frequent checking and calibration of instruments

* Developing in the operator a habit of cross checking

instrument indications with each other to determine whether
the instrument is faulty or there is an abnormal operating
condition; and

* Developing in the operator a habit of analyzing indicated

data to determine accurately what could be wrong.


The main objectives of the maintenance section are to keep

the plant running reliably and efficiently as long as possible.
Reliability is impaired when a plant is thrown to forced and
unforeseen outages. This aspect assumes greater significance in
a co-generating plant exporting power to the SEB's grid under
contractual commitments. It is imperative that any planned
maintenance is under taken with closer co- ordination with HSEB.

Efficient operation implies close control not only over the

cost of production but also over the cost of maintenance. There
are two components in maintenance cost, one is the direct cost
of maintenance i.e. the material and labor and the other is the
cost of production loss.

There are two categories of maintenance work. one is the

irksome breakdown maintenance which is expensive. Much as it is
desirable to avoid or minimize this, its existence must be
accepted. Secondly, it is the preventive maintenance with proper
planning and execution of plant and equipment over hauls. This
maintenance activity should be clearly planned with regard to
the availability of material and labor. It is also essential to
develop proper inspection procedures with non-destructive
testing methods. Such inspections by trained personnel reveal
defects not necessarily detected by mere visual inspection.

The following help in reducing the breakdown maintenance

and also help in planning for preventive maintenance.

* Careful logging of operation data and periodically

processing it to determine abnormal or slowly deteriorating

* Careful control and supervision of operating conditions.

Wide and rapid variations in load and frequency
conditions do contribute to increased maintenance particularly
on the high temperature and high pressure units. The turbine
throttle steam pressure and temperature conditions must also be
kept steady on the rated value.

* Regulate routine maintenance work such as keeping equipment

clean, cleaning heat exchanger, filters, effectively
executed lubrication programme, effective operating supervision
over bearings, commutator or slip ring brushes, gland and
flange leakages.

* Correct operating procedures.

* Frequent testing of plant equipment to determine internal

condition of equipment such as plant cycle efficiency
tests, enthalpy drop tests, heat exchanger and pump
performance tests, generator and turbine shaft vibration
tests, turbine lube oil testing, etc.

* Close coordination with the manufacturers to effect

improvements in plant layouts and design, use of better
material, introduction of such facilities as cathodic
protection, use of better protective paints etc.

It is extremely important that proper records are

maintained not merely for the maintenance work done but also of
the material used and actual man hours spent. Some sort of a
card system shall have to be introduced to keep records that
are most useful in future planning of outages and providing for
effective control.

Another important requirement of a good maintenance program

is to ensure that spares are ordered in time, and good stocks of
the frequently required spares are maintained.

Rapid growth of industrial activity in the country in

general, and in particular in the power generation industry, has
brought about an acute shortage of skilled and trained manpower.
To run the co-generation plant skilled and trained manpower is
essential. A well defined futuristic plan is required to acquire
such qualified & trained work force at the time of
commissioning. The staffing and the organizational requirements
can not be decided on the operating experience with the existing
sugar plant boilers and Turbo-Generator set, but should be done
considering the specific requirements of the proposed co-
generation plant at the crushing capacity of 5000 TCD.

The requirement of the personnel required must be based on

the rational assessment of the following factors :

* The nature of the plant and machinery i.e. boilers like

bagasse fired, dumping/ traveling grate, etc. Turbo-
sets like condensing, back pressure, fuel and ash handling
plant, cooling water system, DM plant, size of switch yard

* Socio-economic conditions.

* Availability of personnel with the right back ground and


* Company's policy regarding, labor and contract labor.

Once the staff is finalized and agreed, a suitable training
scheme shall be programmed and implemented. The objective of the
training programme must be to equip each individual to carry out
his particular function with skill and confidence. The training
programme shall be based on the classification of the main
functions as operation and maintenance and with in this main
classification, designed to cater to engineers, supervisors,
skilled workers etc..


The Drawing No. 8-785212-1 gives the operation and

maintenance organization chart for the PAIL’s co-generation
plant. The organization proposed assumes that the co-generation
plant will be mostly independent from the sugar plant, with the
Chief Engineer Power Plant, holding the full charge of the co-
generation power plant, reporting directly to the Managing
Director. The staffing recommended here takes care of only the
new plant and machinery to be added to the co-generation plant.
There could be some overlapping of functions between the staff
of the existing boilers and the Turbo-Generator sets and the
staff proposed for the new equipment. Such areas should be
identified and the staffing shall be suitably altered.

The organization under the Chief Engineer( Power Plant)

[CE/(PP)], shall be divided into operation and maintenance
sections each headed by a Deputy Chief Engineer, operation
[DCE(O)] and Deputy Chief Engineer maintenance [DCE(M)]. There
is a separate efficiency cell with an engineer directly
reporting to the CE/(PP).
The shift engineers, one in each shift and one reliever and
the chemist working in the general shift report to the DCE(O).
The electrical operators , boiler operators and the Turbo-
Generator set operators coming in shifts, and each one with a
reliever and shift helpers report to the shift engineer. In
addition to the helpers the boiler operators are assisted by the
boiler auxiliary operators.

The maintenance organization of the co-generation plant

works under the DCE(M). The maintenance engineers for the
mechanical, electrical and instrumentation report to the
DCE(M).The supervisor civil maintenance also reports to the
DCE(M) and takes care of all civil maintenance works. Each of
the maintenance engineer is assisted by supervisors and
technicians. The maintenance staff shall be generally rotated in
the general shift, but will be available on call to attend to
any breakdown even in other shifts.

The efficiency cell is an important section which serves

both the operating and maintenance sections by providing useful
feedback to the operating staff and valuable information to the
maintenance staff on the performance and the healthiness of the
various equipment. The major responsibilities of this cell are:

* To establish from the design and plant acceptance test

data, as well as after overhaul test data norms against
which day- to-day performance can be checked.

* To analyze the daily plant performance data to detect

departures from normal expected performance and to keep
track of trends indicating gradual deterioration.
* To carry out frequent tests on the plant and individual
equipment to determine their internal conditions to help
maintenance scheduling.

* To investigate special problems as and when they arise.

The analysis and the data provided by the efficiency cell

enables plant operation and maintenance personnel to take
suitable corrective actions promptly and with proper priorities.


The major objectives of the operational training shall be

to acquaint the operators of the following:

* The nature, purpose and limitations of all the plant and


* The detailed operating instructions on each section and

equipment of the plant

* The normal start up and shutdown programme for the unit.

* The emergency procedures.

The basis for the training shall be Plant Particulars Book,

which is compiled from the manufacturers's instructions, the
contract demand and drawings. In addition, the information
gathered from the visits to the other operating plants and to
the manufacturers work shall also be included in the book.
Supervision and coordination of the training programme requires
full times attention of a senior executive of the plant, and
also the consultant's assistance may be taken. The training
programme shall include lectures, expositions by experienced
plant operators and maintenance personnel, informal discussions
and visits to operating plants and manufacturers's works.

The maintenance training programme should be based on the

requirements of the individual maintenance functions, like
mechanical, electrical, instrumentation etc.. The engineers and
technicians should be sent to the manufacturers works to witness
the production and be associated with the erection of plant and

The impact of any project, specifically the thermal based

power generating project, on the environment, should be studied
in detail. A thermal power generating facility generates both
air and water pollutants and adequate measures should be built
into the project proposal to contain these pollutants with in
acceptable limits. One major redeeming factor about sugar
plant's bagasse based co-generation, is that the dust or the
green house gases released into the atmosphere are no more than
what would have been produced by alternative methods of bagasse
disposal (burning bagasse inefficiently in the boilers, or
letting it decompose) practiced presently in the sugar plants.
Also the co-generating plant, feeding surplus power to the grid,
indirectly prevents a prorata quantum of pollutants, being let
into the environs from the utility plant, from where otherwise
the equal quantum of power would have been generated. The
cogenerating plants thus being indirectly environment friendly
deserve encouragement.

The effluents generated in the proposed co-generation plant

can be classified as under:

* Particulate matter and gases due to combustion of bagasse

in the steam generator.

* Dry fly ash and furnace bottom ash.

* Pollution in liquid form such as,

- Effluent from water treatment plant

- Chlorine in cooling water

- Boiler blow down

- Sewage from various building in the plant

Particulate Matter And Gases

The air pollution elements from the proposed unit are,

- Dust particulate from fly ash in flue gas

- Nitrogen oxide in flue gas

- Sulphur-di-oxide in flue gas

The pollution control regulations limit the particulate

matter emission from bagasse fired steam generators as 350 mg/N
cum. The height of the stack which disburses the pollutants have
been fixed as 40 meters based on the guidelines given by the
pollution control regulations.

The sulphur is very minimal in the fuel and sulphur-di-

oxide emission will be negligible. The temperatures encountered
in the steam generator while burning, high moisture bagasse are
low enough not to produce nitrogen-oxides. Moreover, the tender
specification for steam generator stipulates over fire air
system with staged combustion which will also ensure reduction
in nitrogen-oxide emission. Hence no separate measures are taken
to contain the sulphur and nitrogen oxide pollutants.
Water Pollution

Hydrochloric acid and caustic soda will be used as

regenerants in the proposed water treatment plant. The acid and
alkali effluent generated during the regeneration process of the
ion -exchanger would be drained into a epoxy lined under ground
neutralizing pit. Generally these effluents are self
neutralizing. However provisions will be made such that the
effluents will be neutralized by addition of either acid or
alkali to achieve the required pH of about 7.0. The effluent
will then be pumped into the effluent treatment ponds which is
part of sugar plant effluent disposal area.

Chlorine In Cooling Water

In the condenser cooling water, residual chlorine of about

0.2 ppm is maintained at the condenser outlet. This value would
not result in any chemical pollution of water and also meets the
national standards for the liquid effluent.

Steam Generator Blow Down

The salient characteristics of blow down water from the

point of view of pollution are, the pH and temperature of water
since suspended solids are negligible. The pH would be in the
range of 9.5 to 10.3 and the temperature of blow down water will
be 100 Degree C. The quantity of about 2.0 Tonne/ Hr of blow
down is very small and hence, it is proposed to put the blow
down into the trench and leave it in the effluent ponds.
Sewage From Various Buildings In The Plant

Sewage from various building in the power plant area will

be conveyed through separate drains to the septic tank. The
effluent from the septic tank will be disposed in soil by
providing disposing trenches. There will be no ground pollution
because of leaching due to this. Sludge will be removed
occasionally and disposed off as land fill at suitable places.

Thermal Pollution

A close circuit cooling water system with cooling towers

has been proposed. This eliminates the letting out of high
temperature water into the canals and prevents thermal
pollution. Below down from the cooling tower will be trenched
out and ultimately conveyed to the effluent ponds. Hence, there
is no separate pollution on account of blow down from cooling
water system.

Monitoring Of Effluents

The characteristics of the effluents from the proposed plant

will be maintained so as to meet the requirements of State
Pollution Control Board and the minimum national standards for
effluent from Thermal power plants. Air quality monitoring will
also be under taken to ensure that the dust pollution level is
within limits.

Noise Pollution

The rotating equipment in the co-generation plant will be

designed to operate at a total noise level of not exceeding 85
to 90 db(A) as per the requirement of Occupational Safety and
Health Administration (OSHA) Standards. The rotating equipment
are provided with silencers wherever required to meet the noise
pollution. As per OSHA protection from noise is required when
sound levels exceed those given in the table:

Permissible Noise Levels

Exposure Duration/Day Sound level db(A)

8 90
6 92
4 95
3 97
2 100
1 102

The most essential aspect regarding the implementation of

this Co-generation project is that the project construction,
spanning more than Twelve(12) months, shall affect neither the
sugar plant operation nor curtail the crushing capacity of the
plant. This aspect is very important since, at least one full
crushing season will fall in the Co-generation project
construction period. A good planning, scheduling and monitoring
program is imperative to complete the project on time and
without cost overruns.

The project Zero Date starts once the management gives the
`Go Ahead’ approval after the project is approved by the
Ministry of Non Conventional Energy Sources(MNES) and the
Financial Institution has indicated its willingness to fund the

The sugar plant should, as the first step, employ a

detailed engineering consultant, to entrust them with the
complete responsibility, for the Project Engineering and Design
of the Co-generation plant, and to help the factory in the
procurement, project management and the construction and
commissioning supervision of the project.

A multi disciplinary project like the Co-generation project

needs the services of an experienced consultancy organization,
since most of the sugar plants do neither have the manpower nor
the experience to handle the design and the execution of such a
project. The design phase of the project should start much
early, since the system design and the first stage layout should
be completed before the contract design.
The nature of the project calls for the division of the
project into recognizably discrete plant areas with specific
terminal points that can stand alone for engineering and
contract purposes. An appropriate contract strategy involves,
the decision on the number and the type of contracts to be let,
vendor evaluation, formulation of contract agreement defining
respective obligations, the basis for discharging them and
remedies for default.

The specifications for major equipment like boiler, Tubo-

Generator set etc.. The technical information on which is
essential to the development of the plant design and in
particular to the civil design, shall be drawn up at an early
stage of the project. Program of design information submission,
from the mechanical and electrical contractors, that satisfies
the over all project shall be drawn up. The most important among
such information are the location of the individual plants,
floor loadings, support requirements etc.. Which are required
for the civil design.

Since the project execution calls for closer co-ordination

among the contractors, consultants and the sugar plant proper
contract co-ordination and monitoring procedures shall be
formulated. Detailed bar charts or networks shall be made to
plan and monitor the project progress. Contract drawings and
documents requiring approval from statutory authorities like The
Chief Inspector of boilers, Factory Inspector, Chief Electrical
Inspector, Pollution control Board etc. shall be clearly
identified and scheduled so that the procedural formalities do
not affect the project progress.
The successful and timely implementation of the project and
the avoidance of overspending and frustration depends on the
performance of the project team. This project team shall
consists of the representatives from both the consultants and
the sugar plant.

The responsibilities of this project team shall be :

* Plan and program all the work and resources required for
the project completion.

* Design the plant and the plant support systems.

* Place contracts with the manufacturers and contractors to

procure plant and machinery and services at the right time,
of the right quality and at an economical price.

* Organize the construction and commissioning of the plant by

progressively integrating individual systems.

* Monitor and control the project progress with regular

interactions and co-ordination.

* Ensure cost control to contain the project cost within the

planned budget.

Since the co-generation project is coming up within the

sugar plant complex, in the operating area of the sugar plant,
it is important that the area identified for the co-generation
plant is cleared for the early start of the civil work. The soil
investigation and site grading shall be proceed without any
hindrance. The site development shall include the laying of the
approach road, identifying or constructing adequate storage
space, providing lighting in the work area etc.
Since the plant location is susceptible to monsoon rains,
all the major civil work shall have to be planned in the non-
monsoon period between November to May. It is essential that the
before zero date of the project all the clearances from
government bodies like the pollution control board, electricity
board etc. are obtained. Above all the sugar plant management
should make adequate uninterrupted fund flow available for the
execution of the project.

This is the critical phase of the project where work

progresses in almost all the fronts. The erection and
commissioning phase of all the contracts proceed simultaneously
and it is important to ensure that the various contracts have
adequate facilities and are established on the site in time to
meet their programmed commitments. Adequate power and water
shall be made available for the construction.

The construction manager from the sugar plant side takes

the over all responsibility of the site, assisted by the
resident site manager from the consultant side. The construction
team`s work is to continuously monitor the site progress against
the agreed programme, and to initiate whatever corrective action
is necessary to maintain satisfactory site progress. During the
execution stage of the project at site, quite a few of the
various contracts progressing simultaneously are inter-related,
and hence, the delay in the activities of one contractor will
invariably affect the progress of the other contractors and
ultimately the project progress. This aspect emphasizes the
importance of progress review, project monitoring and timely
remedial measures, for the smooth and “with in the budget”
execution of the project.

Certain basic responsibilities of the construction

management are :
* The contractor shall be encouraged to give the earliest
possible warning of actual or potential difficulties.

* Ensured that the senior management in the contractors

organization are made aware of the serious problems at an
early date.

* Provide a focus for early discussion of any potential

problem and possible remedial measures, while clearly
maintaining the contractors responsibility for recovering

* Help to foster a climate among all concerned that no

extension of site deliveries and erection schedule are

A fortnightly progress review meeting is held with each

contractor, while formal reports are tabled, giving an agreed
progress statement. From these agreed progress statement, an
accurate prediction of the state of the project is available
which helps the construction team to adjust, if necessary, the
activities of the particular contractor and also the activities
of any affected contractor.

One of the major activities in the co-generation project

implementation is the work related to the power evacuation
system inter connecting the co-generation plant and Indri’s sub-
station. This activity should be initiated at the very early
stage of the contract so that the transmission lines and the
interconnection at the sub station are made ready well before
the commissioning of the project.

The commissioning phase in a project is the one where the

design, manufacturing, erection and quality assurance expertise
are put to test. The commissioning team for each plant will
consist of representative from the contractor, consultant, and
the sugar plant. It is essential to associate the staff
identified to operate the plant in the commissioning stage

When construction work is complete, the check list,

designed to ensure that the plant has been properly installed
and appropriate safety measures have been taken, are gone
through, and all the documentation pertaining to the statutory
inspection and approvals are presented, the commissioning team
shall take over. The commissioning team will follow scrupulously
the commissioning and operating instructions laid down by the
plant/equipment, manufacturer/supplier to prove that the
plant/equipment is in every respect fit for service. The plant
shall be subjected to a performance test, after the stipulated
trial operation and the reliability run. After the successful
completion of the performance test the plant will be taken by
the sugar plant.

The over all project schedule envisages the project

commissioning in twenty(20) months from the zero date of the
project. In the schedule the project is divided into three major
categories like civil, mechanical and electrical and these
categories are then sub-divided into major identifiable

For each of the contract, the schedule identifies the

following applicable activities :

* Basic study

* Tendering
* Receipt of offers, evaluation, discussion and purchase
order placement.

* Manufacturing and deliveries.

* Erection and other work at site.

* Commissioning, trial run and testing.

Once the project gets started, it is essential that a

detailed bar or net work chart is prepared incorporating all the
contracts and the activities so that the planning and the
monitoring is effectively done.

The cost of co-generation project is estimated, on the

basis of, the prevailing prices and rates as on February 1996,
and the estimation is for, the installation of power generation
and services facilities described in the previous sections. The
estimate is derived by dividing total quantum of work into two
categories. The category I, is that for which the cost is
calculated based on the current information available on the
prices of plant and equipment and the rates of various works.
The category II, that consisting of major equipment, for which
budgetary offer have been made for any escalation in these
estimates, since the project is expected to be implemented

The cost of the co-generation plant covers all the cost

associated with the construction of the plant, and includes the
civil construction cost, cost of equipment for power generation,
cost of auxiliaries and utilities. The total project cost is
arrived at by adding to this cost, the pre-operative expenses
inclusive of project design and engineering, start-up and
training expenses, interest during construction and the margin
money to meet the working capital requirements.

Land and Site Development

This co-generation project at PAIL is coming up as a part

of the sugar plant and adequate land is available within the
sugar plant premises for setting up the co-generation project.
Hence no cost towards the acquisition of land is considered in
the project cost estimate.

Civil and Structural

The civil work includes the earth work and concrete work
for the plant building, equipment foundations, tanks, cooling
tower basin, ash silo, etc.. The cost of laying of in plant
roads, fencing drains and sewers, landscaping is also included
as part of civil cost. The structural steel work for the Turbo-
Generator set building is also included under the heading ‘Civil
Cost’. No pilling has been envisaged for the buildings as well
as for equipment foundations and only open foundations are
considered. The following rates covering the material and
construction cost are considered in the estimation civil works

Reinforced Cement Concrete : Rs.2500/Cu.M

Reinforcement bars : Rs.19,000/tonne
Structural steel : Rs.20,000/tonne

The civil work quantities and the cost of civil works given
are only estimates and will have to be suitably modified after
the equipment supply is finalized and adequate data regarding
the loading and dimensions of equipment are available from the
manufacturers and suppliers during the engineering stage, and
also on the actual soil conditions encountered at different
stages of construction.

The total civil cost of civil works including the items

specified above is estimated as Rs.150.00 Lakhs.
Mechanical and Electrical Works

The cost of the steam generator & its auxiliaries and

Turbo-Generator set & their auxiliaries are based on the
budgetary offers received from a few of the Indian suppliers. It
may be found that the prices quoted by the suppliers are widely
varying with some of the prices quoted deviating very much off
from realistic prices. In the estimation for the project, the
cost which is closer to the price of some of the recently
finalized orders have been considered.

The cost of cooling tower, DM water plant, cooling water

pumps, the turbine hall crane, transformers and switch yard
equipment are based on the budgetary offers from Indian

All other mechanical and electrical equipment costs are

based either on the cost particulars available for similar
equipment or have been estimated.

The cost of transmission lines for evacuating the power

from the Co-generation plant to the nearby HSEBs substation i.e.
Indri substation at a distance of 1.5 km from the sugar plant is
estimates to be Rs.43 Lakhs.

Cost towards plant erection, testing and commissioning have

been included in the equipment cost indicated. Also the costs
are estimated to be inclusive of taxes and duties, freight and

The cost of two years operation spares is estimated to be

three(3) percent of the equipment cost.
A provision of Rs. 48.0 Lakhs have been made for the pre-
operative expenses covering establishment and administration
during construction, traveling, design and engineering charges,
training of operation and maintenance personnel and start-up

A provision of 5% of the costs of civil and structural

work, mechanical and electrical equipment and other costs has
been made towards contingencies. This contingency provision
works out to 212.00 Lakhs.

The Table A gives the Project Cost without the Interest

During Construction (IDC) and the Working Capital Margin.

Project cost (without IDC & WCM)

S.No Description Cost

Rupees in Lakhs
1. Civil Works 150.00

2. Mechanical Works 1662.00

3. Electrical Works 200.00

4. Total Works Cost 2012.00

5. Spares@ 3% of 2.& 3. 56.0

6. Preoperative Expenses 48.00

7. Sub Total 2116.00

8. Contingency 5% of 7.0 212.00

9. Project Cost 2328.00
(Without IDC and WCM)
Subsidy From Government of India

The Ministry of Non-Conventional Energy Sources, in the

Government of India has announced a subsidy scheme for bagasse
based demonstration Co-generation Plants. The Co-generation
plant being proposed for PAIL fulfills all norms set by MNES to
become eligible for the subsidy. The subsidy amount shall be 15%
of the cost of the equipment identified and listed by MNES or
Rs.35 Lakhs for every MW of exportable power or 300 Lakhs
whichever is lowest.

The cost of equipment identified and listed MNES for the

computation of subsidy is given in Table B. The cost figures
furnished are inclusive of the cost of supply, erection and
commissioning and the taxes & duties.

The exportable power from the co-generation project, as

indicated in the power balance is 11.20 MW. The eligible subsidy
for the project under this clause is Rs. 392.00 Lakhs.

The eligible subsidy (Rs. In Lakhs) for the PAIL`s co-

generation project shall be as given below.

15% cost of equipment cost as per Table B : 281.32

Eligible subsidy as per power balance : 392.00
The maximum Eligible Subsidy : 300.00
Table B
Cost Estimate For The Equipment Listed By MNES

S.No. Description of Equipment Estimated Cost

(Rs in Lakhs)
1. Bagasse fired boiler with
accessories such as feed pumps,
deaerator, heat recovery equipment,
economiser, airpreheater, chimney,
ID&FD 484.00

2. Turbo-Generator with electrical

controls and related mechanical
equipment 1000.00

3. Condenser & cooling water system 60.00

4. Water treatment/conditioning plant 13.00

5. Steam piping necessary for (1)&(2),

up to the exhaust of Turbo-Generator 2.50

6. Bagasse handling equipment for(1) 34.00

7. Grid interconnection scheme

including equipments 151.00

8. Civil works for above equipment 131.00


Interest During Construction (IDC)

The interest during the construction period is capitalized

to calculate the total project cost. The rate of interest
considered is 17.5 %, and is calculated for the project cost of
Rs.2328.00 Lakhs less the subsidy of 281.32 Lakhs from the
Government of India and the equity of Rs.2046.68 Lakhs from the
sugar mill. While calculating the IDC, it is considered that the
drawl of long term loans from the financial institutions will
commence only after the equity capital is utilized. The Project
Construction Period is 18 Months. Also the IDC is calculated for
the phased capital expenditure given in Table C. The calculated
figures of IDC is given in Table D. The period and the bracketed
figures in Tables C& D indicate the half years in the year.

Table C
Phasing of Capital Expenditure And Mode of Financing
(All figures Rupees in Lakhs)

Year/ Expenditure Subsidy Equity Long Term

(Period) during period Component Component Loan
1/(1) 332.00 38.32 293.68 0.00
1/(2) 998.00 121.50 729.66 146.84
2/(1) 998.00 121.50 0.00 876.50
Total 2328.00 281.32 1023.34 1023.34

Working Capital Margin

The working capital for the Co-generation plant shall meet

the requirements of the salaries and wages, procurement of
chemicals and start up fuel, maintenance expenses and overheads
for a period of two months in the season. Since there is no
direct expense for the procurement of bagasse, which is the main
fuel, for the boilers no provision on this account is required.
For the PAIL’s Co-generation project a working capital provision
of 38.60 Lakhs has been made based on the above, and the entire
money is capitalized included in the project cost.
Table D
Calculation of Interest During Construction
(All figures Rupees in Lakhs)

Year Long Term IDC Till

(Period) Loan From end of
Institutions Period
1/(1) 0.00 0.00
1/(2) 146.84 25.70
2/(1) 876.50 76.70
Total 1023.34 102.40

Total project cost

Rs. In Lakhs
Project Cost Without IDC &WCM 2328.00
(Refer Table A)
Interest During Construction 102.40

Working Capital Margin 38.60

Total Project Cost 2469.00

The financial analysis gives the details of the

operation and profitability, the cost of generation of power,
cash flow, for a period of ten (10) years from the commissioning
of the project. The analysis also gives the internal rate of
return for the project, debt service coverage ratio and the rate
of return on the equity. The sensitivity analysis included in
the financial analysis gives the scenario with the variation in
the electricity unit price and the fuel price.

The financial viability of the project is based out on

certain assumptions. The Table A of this chapter and subsequent
pages of this chapter gives the Basis for the Financial Analysis
and the assumptions.

Mode of Financing

The total project cost without the interest during

construction and working capital margin is estimated to be
Rs.2328.00 Lakhs as given in the Table A of previous chapter.
Since the project fulfills all the norms set by the Ministry of
Non-Conventional Energy Sources of Government of India, it is
expected that the project will get the eligible subsidy of
Rs.281.32 Lakhs.

The difference between the project cost of Rs.2328.00 Lakhs

and subsidy of Rs.281.32 Lakhs, is equal to the Rs.2046.68
Lakhs, Rs. 1023.34 Lakhs will be brought in as equity for
project. Balance Rs. 1023.34 Lakhs will be mobilized as long
term loans from financial institutions.
Based on the above pattern of investment the interest
during construction is calculated to be Rs.102.40 Lakhs as given
in the Table D of previous chapter. This IDC as well as
provision for working capital margin Rs. 38.60 Lakhs will be
taken as long term loans and capitalized.

The total long term loans including the IDC and the working
capital margin works out to be Rs.1164.34 Lakhs. It is assumed
that this loan amount will be repaid in Six (6) equal
installments and there will be an initial moratorium of Two(2)
years on the loan repayment. An interest rate of 17.5 % is
considered on the term loans, and it is assumed that the
interest payment and the loan repayment will be half yearly, and
the Table B of this chapter gives the details.

The project envisages no foreign exchange out flow from

PAIL, since all the equipment are assumed to be bought from
indigenous suppliers.

Plant Operation

PAIL’s Co-generation plant is planned to be operated during

cane crushing season, (on an average 180 days in a year) with
the bagasse generated in the sugar plant.

Saleable Electricity

The Gross generation of power in the plant will be 20.30

MW. Out of this 8.21 MW will be consumed by sugar plant and
another 0.89 MW will be consumed by the Co-generation plant
auxiliaries. This leaves a surplus power of 11.20 MW for export.
This exportable power, with a plant capacity utilization of
90% and with 2.0 % for wheeling and banking , gives a seasonal
energy sales of 39.92 Million KWh of electricity over the season
period of 180 days

The power generated could be sold to HSEB or to any third

party, and HSEB may permit third party sales through their
grid. In the analysis wheeling and banking charge of 2.0 % of
the power exported, applicable for sales to HSEB, is considered.

Unit Price of Electricity

The Ministry of Non-Conventional Energy Sources, have

recommended a price of Rs. 2.25 per KWh. However many SEB`s have
not yet implemented this recommendation. It is however expected
that HSEB will also follow this recommendation.

Barter Arrangement For Fuel

The co-generation project will run only with the bagasse

and the sugar plant needs of power and steam for its operation.
For the PAIL`s co-generation plant it is assumed that the sugar
plant will supply all the steam and the power require for the
sugar plant. Since the sugar plant generally saves bagasse
after meeting its power and steam requirements, it was decided
to extent the barter arrangement only to extent of power and
steam require by the sugar plant. The surplus bagasse, defined
as the bagasse that could have been saved if the sugar plant had
just produced the power and steam for its requirements, is
charged to the co-generation plant at the market rate of Rs.
250/- per ton. The surplus bagasse quantum works out to 59400
Tonne per season.

Operation And Maintenance Cost

The operation and maintenance cost for the project includes

the salaries and wages for the operating and maintenance staff,
repairs and maintenance and general plant expenses towards the
operation of the plant. An operation and maintenance expense of
2.5% of the total work cost is considered in the financial

Administration & Overheads

The cost included under this head is 0.32 % of the total

works cost. This considers the general administrative expenses,
plant over heads and the expenses towards selling of power.

Selling Expenses

This cost is 0.75 % of the revenue earned by selling energy

to the grid. This cost comes out to about Rs. 6.7 Lakhs.

Utilities Cost

This included the cost of water, chemicals, oil, lubricants

and other consumables used in the plant. This cost is 1.3 % of
the revenue earned by selling energy to the grid. This cost
comes out to about Rs. 11.80 Lakhs.

Taxes On Generation And Sales

No expenses under this head is considered since this is not


Escalation Provision For Various Costs And Expenses

The cost of Fuel, Energy, utilities and the expenses

towards Administration, O & M, selling etc. considered in the
analysis are expected to increase over the years, and the
escalation considered for the various items are given in Table A
of this chapter.


The Depreciation applicable for the co-generation plant is

the same as that applicable for other power generation plants.
Based on the latest guidelines and the applicable depreciation
for this category of plant and equipment is 5 % on the straight
line basis. The depreciation applicable to buildings is 3.46 %.
Since the building cost component of the total Co-generation
project cost is very marginal, a uniform depreciation rate of 5
% is applied to the total installed project cost.

Generation Cost

The Table C gives the cost of generation of electricity at

the grid per KWh, for ten (10) years operation from plant
commissioning , based on a net energy sale of 39.92 Million
KWHr. No derating of the plant capacity is required over the ten
years period. The cost of generation of the saleable electrical
energy at the grid works out to around Rs. 1.16 per KWHr. This
figure varies between Rs. 1.41 and Rs 0.90 during the ten years
Sales And Profitability Statement

Table D gives the details of the sales and profitability.

No provision is made for Income Tax in the analysis of the
profitably, since the G.O.I. has given a five years tax holiday
for private sector power generation, and also the Factory is in
the co-operative sector. The operating profit increases
progressively over the succeeding years, as the interest charges
on term loans are progressively declining starting with Rs.
457.84 Lakhs in the first year of commercial operation, the
profit changes to Rs. 414.03 Lakhs at the end of tenth year of

Cash Flow

The details of the estimated cash flow generated by the

project operation over a period of ten years is given in table
E. After the re-payment of all the term loans, at the end of the
tenth year, there is a net cumulative surplus cash of
Rs.2943.65 Lakhs. It may be seen from the statement, that the
term loan re-payment starts in the third year and ends in the
eighth year.

IRR, DSCR And Break-even

Table F gives the working of project Internal Rate of

Return (IRR) and The Debet Service Coverage Ratio (DSCR). The
project IRR works out to 21.92 %, and the average DSCR over the
ten years periods works out to 2.504. The DSCR which is around
3.24 in the initial two years comes down as the loan re-payments
starts in the third year, and again gradually increases as the
interest burden comes down over the years. The project gives a
rate of return of 44.74 % on the equity, based on the operating
profit. Table G gives the break even analysis. The break even
capacity works out to 54.30 % based on the estimated working
results of the second year of operation.
Table A

Page 1 of 3
S.No. Description Unit Quantity

1. Installed Project Cost Rs. Lakhs 2469.00

2. Subsidy From G.O.I. Rs. Lakhs 281.32

3. Equity From PAIL Rs. Lakhs 1023.34

4. Term Loan

- Long term loan Rs. Lakhs 1164.34

- Loan for working Rs. Lakhs 0.00

5. Number Of Season Days 180

6. Project Schedule Months 18

7. Gross Power Generation KW 20300.00

8. In-house Consumption For KW 8210.00

Sugar Plant

9. In-house Consumption For KW 890.00

Co-generation Plant

10. Net Exportable Power KW 11200.00

To Grid

11. Plant Capacity % 90.0


12. Wheeling and Banking % 2.0

13. Seasonal Energy Supply MKWHr 39.92

To Grid

14. Surplus Bagasse Used Tonne/Yr 59400

Page 2 of 3
S.No. Description Unit Quantity

15. Sale Price Of Energy Rs./KWHr 2.25#

16. Sale Price Of Bagasse Rs./Tonne 250.00#

17. Opern. & Maint. Cost Rs. Lakhs 61.70#

18. Admin. & Overheads Rs. Lakhs 7.90#

19. Selling Expenses Rs. Lakhs 6.70#

20. Utility Cost Rs. Lakhs 11.80#

21. Taxes On Generation Rs. Lakhs 0.00

And Sales

22. Moratorium In Loan Years 2


23. Term Loan Repayment Years 6


24. Interest Rate On Term % 17.50


25. Project Cost Apportionment 0.00

To Sugar Plant
Page 3 of 3
S.No. Description Unit Quantity

26. Annual Cost Escalation On % 0.00


27. Annual Cost Escalation On % 0.00

Opern. & Maint.

28. Annual Cost Escalation On % 0.00

Admin. & Selling

29. Annual Cost Escalation On % 0.00


30. Annual Cost Escalation On % 0.00

Note :

# Figures thus identified are at the time of start of

the project
Table - B
Work Sheet for Interest Payment and Loan Repayment

All payments are made half yearly and all rupees are in Lakhs.

Loan Amount : 1164.34

Moratorium : 2
Interest(%) : 17.5 % Repayment Period : 6

Yr Half Loan Out St Interest Total Half . Yr. Loan Yr.

year payment Loan Repay. repayment Inst.

1 1 0.00 1164.34 101.88 101.88 __

1 2 0.00 1164.34 101.88 101.88 0.00
2 1 0.00 1164.34 101.88 101.88 __ 6

2 2 0.00 1164.34 101.88 101.88 0.00 __

3 1 97.03 1067.31 101.88 198.91 __ 203.7

3 2 97.03 970.28 93.40 190.43 194.06
4 1 97.03 873.25 84.90 181.93 __
4 2 97.03 776.22 76.41 173.44 194.06 8

5 1 97.03 679.19 67.92 164.95 __ __

5 2 97.03 582.16 59.43 156.46 194.06 161.3

6 1 97.03 485.13 50.94 147.97 __
388.10 __
6 2 97.03 42.45 139.48 194.06
291.07 127.3
7 1 97.03 33.96 130.99 __ 5
7 2 97.03 25.47 122.50 194.06 __
8 1 97.03 16.98 114.01 __ 93.39
8 2 97.03 8.49 105.52 194.06 __

9 1 0.00 0.00 __ 59.43

9 2 0.00 0.00 0.00 __


Table G


Analysis For The Second Year Of Operation


1. Sales Realization Rs. Lakhs : 898.20

2. Variable Costs

a. Fuel Cost Rs. Lakhs : 148.50

b. Utilities Cost Rs. Lakhs : 11.80

c. Selling Expenses Rs. Lakhs : 6.80

d. Total Variable Cost Rs. Lakhs : 167.00

3. Contribution Rs. Lakhs : 731.20

4. Fixed Costs

a. Opern.& Maint.Cost Rs. Lakhs : 61.70

b. Admin.& Overheads Rs. Lakhs : 7.90

c. Interest On Term Rs. Lakhs : 203.80


d. Depreciation Rs. Lakhs : 123.40

e. Total Fixed Cost Rs. Lakhs : 396.80