Annex IV KGEPL TEV Report On AV UE Technology

TECHNO-ECONOMIC VIABILITY REPORT
ON
MUNICIPAL SOLID WASTE TO ENERGY (WTE)
PROCESSING PLANT BY
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
~PREPARED FOR~
M/S. Kolhapur Green Energy Pvt. Ltd.
602, TRADE CENTER, BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI – 411 051
MAHARASHTRA, INDIA
~PREPARED BY~
MITCON CONSULTANCY & ENGINEERING SERVICES LTD.
KUBERA CHAMBERS, SHIVAJINAGAR, PUNE – 411 005
MAHARASHTRA STATE, INDIA
March 2014
TABLE OF CONTENTS
DISCLAIMER……………………………………………………………………………………………………………4
EXECUTIVE SUMMARY.......................................................................................................................5
ROMOTER’S PROFILE & PROJECT BACKGROUND..................................................................................13
1.1 COMPANY PROFILE OF KGEPL…………………………………………………………..….…..13
1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL………………………………………..14
1.3 KEY MANAGEMENT TEAM OF KGEPL……………………………………….……………..17
1.4 COMPANY PROFILE OF RSSPL…………………………………………………………………..18
1.5 COMPANY PROFILE OF SHIIPL…………………………………………………………………..18
1.6 PROJECT BACKGROUND………………………………………………………………….………..19
1.7 EPC CONTRACTOR…………………………………………………………………………………….21
1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL………………...………………………...21
1.9 SCOPE OF TEV STUDY……………………………………………………………………………....21
1.10 METHODOLOGY………………………………………………………..…..……………………….…22
TECHNICAL FEASIBILITY....................................................................................................................23
2.1 KOLHAPUR MUNICIPAL CORPORATION……………………………………………......23
2.2 LAND……………………………………………………………………..………………………………..24
2.3 QUANTIFICATION OF SOLID WASTE GENERATION……………………………..…27
2.4 WASTE PROCESSING TECHNOLOGY EVALUATION PARAMETERS…….…….29
2.5 PROPOSED PROCESS AND TECHNOLOGY…………………………………………….….35
2.6 PROCESS LOGIC……………………………………………………………………………………..…36
2.7 PROJECT AT A GLANCE………………………………………………………………………..…...38
2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY……..39
2.9 MACHINERY…………………………………………………………………………………………..…41
2.10 MAN POWER REQUIREMENTS…………………………………………………………………42
2.11 STATUTORY & NON-STATUTORY APPROVALS…………………………………….…44
2.12 CONCLUSION………………………………………………………………………………………...….45
Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 2
MARKETING VIABILITY....................................................................................................................46
3.1 SOLID WASTE MANAGEMENT…………………………………………………………………46
3.2 REGION WISE WTE POTENTIAL IN INDIA………………………………………….……49
3.3 MUNICIPAL SOLID WASTE GENERATION …………………………………………….…55
3.4 IMPORTANCE OF SOLID WASTE MANAGEMENT: CONCEPT OF WASTE TO
ENERGY……………………………………………………………………………………………….…59
3.5 REDUCTION IN GREEN HOUSE GAS (GHG) EMISSIONS……………………………59
3.6 FLYASH BRICK MARKET VIABILITY………………………………………………………65
Appendix - GOVERNMENT OF ANDRA PRADESH……………………………….………68
VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT………………………73
3.7 POLICIES AND GUIDELINES OF MNES……………………………………………….….…78
3.8 POWER PURCHASE AGREEMENT……………………………………………………………78
3.9 CONCLUSION……………………………………………………………………………………………78
FINANCIAL VIABILITY......................................................................................................................82
4.1 EVALUATION PARAMETERS FOR FINANCIAL VIABILITY………………….……82
4.2 OVERVIEW OF OVERALL FINANCIALS………………………………………………..…..82
4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL) …………………………………..84
4.4 ASSUMPTIONS OF THE PROJECT……………………………………………………………85
4.5 CALCULATIONS OF DSCR IS AS UNDER……………………………………………………89
4.6 PROJECT IRR………………………………………………………………………………………..…90
4.7 The financials based on above assumptions has been attached as an
annexure named “Financials”. …………………………………………………………………...………90
4.8 EVALUATION CRITERIA……………………………………………………………………………90
4.9 CONCLUSION……………………………………………………………………………………………91
SWOT ANALYSIS..................... ......................................................................................................91
5.1 STRENGTH……………………………………………………………………………………………..…92
5.2 WEAKNESSES……………………………………………………………………………………………92
5.3 OPPORTUNITIES………………………………………………………………………………………92
5.4 THREATS……………………………………………………………………………………………….…92
BANKING ASPECTS OF THE PROPOSAL...............................................................................................93
CONCLUSIONS & RECOMMENDATIONS...............................................................................................95
DISCLAIMER
DELIVERY CHALLAN: No: BFS/DC/TEV/86/2013-14/C/1
Date: 25/03/2014
MITCON Consultancy & Engineering Services Ltd., Pune has prepared this TEV Study
on25.03.2014 for the Setting up Waste-to-Energy (WTE-180 TPD) Processing Plant
for power generation (1.8 MWh)at Kolhapur of Kolhapur Green Energy Private
Limited, 602, Trade Centre, Bandra Kurla Complex, Bandra East, Mumbai - 400051,
Maharashtra State on a best judgment basis.
While all reasonable care has been taken in its preparation, details contained in this
report have been compiled in good faith based on information provided by M/s
Kolhapur Green Energy Private Limited
It is further informed that the projections are the management’s best estimates and
no representation, warranty or undertaking, express or implied is made and no
responsibility is accepted by MITCON Consultancy & Engg. Services Ltd. and / or its
affiliates and / or its Directors, employees / officers in this report or for any direct or
consequential loss arising from any use of the information, statements or forecasts in
the Report.
This report is for confidential use of M/s Kolhapur Green Energy Private Limited., and
their bankers may use it only to raise loans from Banks / Institutions for meeting the
cost of the envisaged project and not for any other use.
EXECUTIVE SUMMARY
PROJECT HIGHLIGHTS:
A) General
Kolhapur Green Energy Private Limited

Applicant company
(KGEPL)
Constitution Private Limited
602, Trade Centre, Bandra Kurla Complex,

Regd. Office address Bandra East, Mumbai - 400051, Maharashtra,
INDIA
Regn. No. / CIN No. U40300MH2013PTC249945
Date of
08.11.2013
incorporation
Sunilhitech India Infra Pvt. Ltd (SHIIPL)
(Subsidiary of Sunilhitech Engineers Ltd.
Parent company (SHEL))
Rochem Seperations Systems (India)Pvt. Ltd
(RSSIPL)
SHIIPL: U45400MH2012PTC232077
Regn. No. / CIN No.
RSSIPL: U24100MH1991PTC064068
Date of SHIIPL: 12/06/2012

incorporation RSSIPL: 19/11/1991
Registered Office SHIIPL:
602, Trade Centre, Bandra Kurla Complex,
Bandra East, Mumbai - 400051, Maharashtra,
INDIA.
RSSIPL:
101, HDIL Tower, Anant Kanekar Marg,
Bandra (E), Mumbai.
Proposed Project Kasaba Bavda village, Tehsil Kolhapur,
Site Address District, Kolhapur, Maharashtra
Board of Directors Kolhapur Green Energy Private Limited
i. Mr. Sunil Ratnakar Gutte

ii. Mr. Venkataramana Condoor
iii. Mr. Prayas Kamlesh Goel
RochemSeperations Systems (India)Pvt. Ltd
i. Mr. Prayas Kamlesh Goel
ii. Mr. Prerak Goel
iii. Mr.Rathin Vyas
Sunilhitech India Infra Pvt. Ltd
i. Mr. Sunil Ratnakar Gutte - Joint
Managing Director.
ii. Mr. R. S. Tiwari– Director
iii. Mr. C. Venkataramana

Managing Director: Sunilhitech India
Infra private limited
Director: Sunilhitech Engineers Ltd.
Products Setting up Waste-to-Energy (WTE-180 TPD)
Processing Plant for power generation (1.8
MWh) at Kolhapur, Maharashtra.
End Product is Electricity.
Scope of Study Techno-Economic Viability for Green field

project for Setting up Waste-to-Energy (WTE-
180 TPD) Processing Plant for power
generation (1.8 MWh).
B) Key observations
Company  Kolhapur Green Energy Pvt. Ltd (KGEPL) is a
overview
special purpose vehicle (SPV) promoted by
Sunilhitech Engineers Ltd. (SHEL) and its subsidiary
Sunilhitech India Infra Pvt. Ltd (SHIIPL) who has
entered into a Shareholder’s Agreement with
Rochem Separation Systems Pvt. Ltd. (RSSPL) on
February 20, 2014.. KGEPL was formed to establish
a Processing plant with a capacity of 180 TPD for
conversion of MSW into useful product i.e. Power
and other Recyclable by products at Kasaba Bavda
Village, Kolhapur, Maharashtra on Design, Build
Finance, and Operate and Transfer (“DBFOT”) basis
for a period of 30 years.
Project  Rochem Separation Systems Pvt. Ltd. (RSSPL)has
Overview been awarded a letter of award on 17.09.2013 by
Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for
treating the MSW collection from the city of
Kolhapur on Design, Build, Finance Operate and
Transfer (DBFOT) basis.
 KGEPL is a special purpose vehicle (SPV) formed
for the said purpose.
 The Concession Agreement has been signed
between KMC and KGEPL on 7th February 2014.
 The development of project is expected to start

once KGEPL achieves financial closure. The
Construction period of the project within 08
months from start of construction. Expected Plant
Commissioning date will be January 01, 2016.
 The Municipal Corporation (KMC) has already

executed the land lease agreement with KGEPL on
3rd June 2014.
 SHEL will be the main EPC contractor to implement

the project on turnkey basis as proposed by KGEPL.
Financial Cost of Project –
Indicators: Total Cost
Sr. No. Particulars
in Lacs
1 Plant & Machinery 1666.68
2 Civil Costs 613.42
3 Overheads & Contingency Exp. 45.60
@ 2%
4 Pre-operative Expenses 45.60
@ 2%
5 Financing Costs 1.50% 34.20
6 Interest During Construction 77.18

Total Project Costs* 2,482.69
Means of Finance
Particulars Amt. Rs. in Lacs %
Owners Contribution 868.94 35%
Debt Finance 1613.75 65%
Total 2482.69 100%
Financial Indicators – Rs. In Lacs
Sr.
Particulars Figures
No.
01. EBIDTA as on March 621.27

2017
02. Profit Before Tax as on 319.86

March 2017
03. Profit After Tax as on 255.86

March 2017
04. DSCR Avg. 1.78

Min. 1.54
07. Project IRR 23.24%
08. Project NPV 2,919.29
09. Equity IRR 34.06%
10. Equity NPV 1,627.56
Observations 1. KMC will be providing the following fee to KGEPL
for accepting & processing the MSW at the
established MSW processing plant for a period of
30 years with following financial offer:
Description Details
Tipping Fees Rs.308/- per MT of MSW, with no

escalation during the concession
period.
2. Land Lease Agreement has been signed between

KGEPL and KMC on 3rd June 2014.
3. Till date KGEPL have issued performance Bank

Guarantee of Rs. 150.00Lacs to KMC dt. 29.01.2014
having expiry date of 01.06.2015.
4. Project Development Fees of Rs. 40.00Lacs is

already being paid to KMC on 31.10.2013 vide DD
No. 023786.
5. Concession Agreement between KMC & KGEPL is

executed on 7th February 2014.
6. As per the Concession Agreement &KMC waste

generation is assumed to be 140 TPD in 2015 and
increases to 180 TPD by 2029. It assures the
KGEPL will get the raw material i.e. MSW from KMC
continuously as per the Concession Agreement
assuring the raw material supply.
7. KGEPL will be having its own power generation

arrangements and therefore assured revenue
generation.
8. Provision of machinery, utilities, and misc. assets

are adequate.
9. The infrastructure in the form of building and

sheds is adequate to support the projected
production.
10. Company does not face any problem in sourcing

the technical and non-technical manpower.
11. Based on the data provided and observations

during the site visit, the project is considered to be
technically feasible.
12. The assumptions are realistic on income side and

conservative on expenditure side. Profitability
appears to be achievable and realistic.
13. On perusal and detail analysis of financials

submitted by KGEPL; we observed that the
financials reveal sound financial indicators.
Conclusions The comprehensive scheme would address the
long term profitability. It would also help
Company to address and solve the issue of MSW
management and would enable company to bring
liquidity as well to protect the interest of all
stakeholders including the lenders.
Therefore, after detailed financial appraisal, we

are of the opinion that the project of KGEPL is
proper for implementation and after its due
implementation; KGEPL would be in a position to
recover the position as stipulated in financials.
Thus, it being financially viable proposal may be
accepted by financing bankers as fair banking risk.
CHAPTER-1
PROMOTER’S PROFILE & PROJECT BACKGROUND
1.1 COMPANY PROFILE OF KGEPL –

Kolhapur Green Energy Pvt. Ltd (“KGEPL” or “Company”) is incorporated
during 08.11.2013 having its registered office at 602, Trade Centre, Bandra
Kurla Complex, Bandra East, Mumbai - 400051, Maharashtra, INDIA. KGEPL
is a special purpose vehicle (SPV) promoted by Sunilhitech Engineers Ltd.
(SHEL) and its subsidiary Sunilhitech India Infra Pvt. Ltd. SHIIPL has entered
into a Share Holder’s Agreement with Rochem Seperations Systems
(India)Pvt. Ltd(RSSIPL).By virtue of this Agreement SHIIPL have majority
shares with voting & economic rights by which the shareholding comes to
88:12 respectively. KGEPL was formed to establish Processing plant with a
capacity of 180 TPD for conversion of MSW into useful product (Power) &
Bottom Ash as the byproduct at Kasaba Bavda Village, Kolhapur,
Maharashtra on Design, Build Finance, and Operate and Transfer (“DBFOT”)
basis for a period of 30 years.
1.1.1 The land of 4hectare will be allotted to KGEPL by KMC on a lease basis. The
project is expected to achieve Commercial Operation Date (COD) by January
01, 2016.
1.1.2 The Group’s extensive past experience in infrastructure has provided it an

opportunity to enter into solid waste management sector as an extension of
the current business portfolio. The group has aggressive plans in the solid
waste management sector where it plans to bid for several other projects.
Kolhapur Municipal Corporation (KMC) has allotted the letter of acceptance

to M/s Rochem Seperations Systems (India)Pvt. Ltd (RSSIPL). vide letter
Health Dept. / W.S. No. 1/ 211/ 2013 dt. 17/09/2013 on the basis of bid
documents submitted by on dt. 20/06/2013 against the Tender Notice No.
27 dt.04/06/2013 for proposal to Establishment of Processing Plant for
Conversion of MSW to useful product (Power) at KasabaBavda, Village in
Kolhapur on DBFOT basis.
1.1.3 KGEPL proposes to implement Reverse Push Reciprocating Grate Technology

Sourced by Articulated Vessels & Utility Engineers (P) Ltd. (AV-UE) for
execution of said contract with Kolhapur Municipal Corporation (KMC).
1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL –

The brief profiles of the board of directors of KGEPL are as under:
1.2.1 Mr. Sunil Ratnakar Gutte Managing Director)

Mr. Sunil Gutte, Managing Director, is a Mechanical Engineer from Pune
University, has done Family Business Management course from S.P. Jain
Institute of Management, Mumbai and Project Management from IIM,
Ahmedabad. After completion of his education he joined Sunilhitech Engineers
Ltd. (SHEL), initially in project executions, administration and control. He was
instrumental in the journey of the SHEL from Private Limited to Limited and
then to Listed Company with two major stock exchanges of India, he
successfully completed the IPO in 2006 and QIP in 2008. His dedication,
understanding, business and finance skills, making and implementing
developmental policies, broadening of avenues for various business,
implementing reporting standards, good Corporate Governance practices, has
been instrumental in Group’s overall strength, today the group stands tall with
more than Rs 1500 crores top line. Sunilhitech diversified in to Sugar ,Power
and Distillery through a state of the art green field integrated plant Gangakhed
Sugar and Energy Ltd (approx Rs400 crore) in 2010, the project has been
awarded with Mega status by Govt. of Maharashtra in 2012 since it is
established in the industrial backward region of Marathwada, to partner with
the growth of vidharbha Sunilhitech also forayed into manufacturing through
its subsidiary SEAM Industries Ltd at Butibori Nagpur in 2008, which has the
capability to manufacture Power plant and Process plant equipments and
accessories (upto 660 mw), with a annual turnover of approx Rs. 200.00crs.
1.2.2. Mr. C. Venkataramana

Managing Director: Sunilhitech India Infra private limited
He has renowned experience in infrastructure business as well as marketing
for over 33 years of which 18 years in the field of infrastructure development
with close to 14 years in senior position as M. D, CEO and Sr. VP (Infra). In the
field of infrastructure he has handled many prestigious projects from Bid stage
to execution stage with two leading groups in the country i.e. GVK and Essel
Group (Zee TV). He has been a part of the success story of these two groups
establishing themselves in infra space from scratch. In the case of Essel Group
(Zee TV) it was he who handled the total growth in Infra space. Some of the
prestigious projects handled by him in GVK were Mumbai airport (9000 cr),
Jaipur Kishangarh, 6 lane road (700 cr), Peramballus SEZ (1500 cr), GVK one
mall at Hyderabad of 7.5 lacs Sqft (250cr) and many more. In the Essel Group
(Zee TV) he started from scratch in 2008 and has handled 14 road projects
(10000cr) of which 9 were completed with 5 roads in NHAI and 9 roads of
special state highways and state highways, one hydel project in Nepal – 82 MW
(850 cr) 3 solar projects under NVVN and KREDL 30 MW (270cr), a school
project of 5 lacs sqft with MMRDA in BKC (260cr), Municipal solid waste to
energy project of 3500 TPD per day (1000cr) including Deonar in Mumbai,
24*7 water supply project at Aurangabad (1200cr) as well signed
Memorandum of understanding (MOU’s) with various state governments for
infra projects.
1.2.3. Mr. Prayas Kamlesh Goel
Mr. Prayas Goel holds a degree in Mechanical Engineering from Bombay
University and his role at Concord Blue includes overseeing Business
Ventures, Equipment and Process standardization, Strategic vendor
Management, Growth and Corporate Strategy. At an early age of only 24 years
Mr. Goel invented and patented his own reverse osmosis waste water
membrane treatment technology, which today is installed in over 500
locations throughout the world. Clients range from private industry such as
distilleries, the Indian and Sri Lankan Navy and Government bodies for the
production of clean water. Today Prayas is the mastermind behind the
Concord Blue Reformer – A revolutionary technology in waste management
services. Prayas brings with him a world of experience in the areas of
engineering and process industries. Hailing from an entrepreneurial family,
Prayas has been at the helm of his business for over half a decade now.
The other details of board of directors of KGEPL are as under:
Sr. No Name of the Director Address

1. Mr. Sunil Ratnakar 97, 4th floor Swami Plaza East High Court
Gutte Road Ramdas Peth, Nagpur
2. Mr. C. Venkataramana 602, Trade Center BKC, Bandra East,
Mumbai
3. Mr. Prayas Kamlesh 101, Dheerajarma Anant Kanekar Marg
Goel Bandra East Mumbai.
1.3 KEY MANAGEMENT TEAM OF KGEPL
KGEPL has a senior management team with cumulative professional
experience. Following are various Key Management personnel of KGEPL:
Name Designati Experience Detailed Experience Functional
on (in Years) duties at the
Unit
Mr. C. Director 33 Rich experience in Will look after
Venkataramana overall Project the overall
development project
Mr. Ashok Vice 41 Rich experience in Will look after

Mahindrakar President Project Management, project
Construction execution.
Management &
Commissioning of
Project in EPC & BOP
Projects.
Mr. Sunil Shinde General 15 Rich experience in civil Will look after
Manager works of major the civil works
infrastructure projects. of the project.
Mr. S. R. General 12 Rich experience in HR, Will look after

Venunath Manager overall Administration overall
& Corporate Affairs administration
& liasoning.
Mr. P.N.Rao AGM 50 Rich Experience in Will look after

Distribution project
Transformers, execution
transmission lines &
O&M
Mr. Pradip AGM 35 Rich experience in Will look after

Adake overall Site Project
Management Management,
Construction
Management &
Commissioning
of Project.
Mr. Rohit Senior 15 Rich experience in Will look after

Sharma Manager executing MSW & the overall
water supply Project. operations of
the project.
1.4 COMPANY PROFILE OF RSSPL–
Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) is a company incorporated on
19th November 1991 with office located at 101, HDIL Tower, Anant Kanekar Marg,
Bandra (E), Mumbai.
The company is involved in waste water treatment solutions by providing Reverse

Osmosis (RO), Nano-filtration (Nano) and Ultra Filtration. Sea Water Desalination,
Ground / Brackish Water Desalination and Industrial Waste Water Purification
for Recycling and Reuse.
Some of the Directors of RSSPL are:
a. Mr. Prayas Kamlesh Goel
b. Mr. Prerak Goel
c. Mr. Rathin Vyas
1.5 COMPANY PROFILE OF SHIIPL –
M/s Sunilhitech India Infra Pvt. Ltd. (SHIIPL), a subsidiary of SHEL and
incorporated for infrastructure business by competitively bidding for projects
in the new & upcoming sectors like waste to energy, solar power projects, road
development & construction. The company would be targeting these projects
both on BOOT, EPC & Annuity basis falling under various authorities whether
it is National or State.
Some of the Directors of SHIIPL are:

a. Mr. Sunil Ratnakar Gutte
b. Mr. R. S. Tiwari
c. Mr. C. Venkataramana
1.6 PROJECT BACKGROUND –
Necessity of the project -
When a material is not suitable / usable for human society then that material
is called as waste for that society. Waste generation is 24 x 7 ongoing
processes. Waste generation and living organisms grow in direct proportion to
each other. As living standard increases per capita waste generation increases
and vice versa. By better handling of waste coming out from human society;
environmental burden and direct and indirect effect on human health can be
minimized.
Presently, major of waste in India is dumped on open grounds or in low-lying

area and water bodies also. In order to solve this problem different waste
management rules are implemented like Hazardous Waste Management, Bio-
Medical Waste Management, E-Waste management and Municipal Solid Waste
management (MSW Rule 2000[Management & Handling]). For fulfillment of
above rules Public Private Partnership are welcomed for development of MSW
sector.
Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) has been awarded a letter
of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for treating the MSW collection from
the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)
basis. KGEPL is a special purpose vehicle (SPV) promoted by Sunilhitech
Engineers Ltd. (SHEL) through its subsidiary Sunilhitech India Infra Pvt. Ltd.
The Concession Agreement was signed between KMC and KGEPL id signed on
7th February 2014 for setting up a MSW processing plant with a capacity of
180 TPD for conversion of MSW into useful product (Power) Kolhapur in
Maharashtra on “DBFOT” basis for a period of 30 years. The project is
expected to be completed within 08 months & commencement of commercial
operations of the project is expected to start by January 01, 2016.
The Municipal Corporation has provide the4 Hectare land as per Concession
Agreement.
SHEL will be the main EPC contractor to implement the project on turnkey
basis as proposed by KGEPL.
The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is
proposed to be funded in a Debt to Equity ratio of 65:35. Total Owners
Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.
1613.75Lacs for the project would be tied up with Banks/ Financial
Institutions.
KGEPL has decided to set up Processing Plant for Conversion of Municipal

Solid Waste (MSW) in to Useful Product (Energy) at Kasaba Bavda village,
Tehsil Kolhapur, District, Kolhapur, Maharashtra on “DBFOT” Basis. KMC will
collect and transport the waste from city with the help of their own resources
and delivered at processing plant premises for processing.
According to the advertisement published by KEM in local newspapers dated

04.06.2013 for Expression of Interest from parties executing MSW
management under open technology. RSSPL had applied for the same.
In response to the said Request for Proposal RSSPL submitted its willingness
to execute MSW management project on 20.06.2013.
After appraisal of tender documents submitted by bidders, KMC had release

letter of award on 17/09/2013for setting up of MSW processing plant for
treating the MSW collection from the city of Kolhapur on Design, Build,
Finance Operate and Transfer (DBFOT) basis.
Since the project is to be execute on DBFOT basis, KGEPL proposing to approach

bankers for financial assistance.
KGEPL therefore have approached MITCON for assessment of techno-Economic
Viability (TEV) of its proposed project.
1.7 EPC CONTRACTOR

KGEPL have decided to include SHEL as its EPC Contractor. Since the Company
has rich experience in large infrastructure projects. The KGEPL is in process of
finalizing EPC contract with SHEL The scope will include civil work, EPC,
equipment & erection till commissioning of the plant. AV-UE shall source
indigenous equipments along with O&M of the plant.
1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL–

The financial commitments made by KGEPL till date is as follows:
1. KGEPL have issued performance Bank Guarantee of Rs. 150.00Lacs to
KMC dt. 29.01.2014 having expiry date of 01.06.2015.
2. Project Development Fees of Rs. 40.00Lacs is already being paid to KMC
on 31.10.2013 vide DD No. 023786.
1.9 SCOPE OF TEV STUDY -
THE SCOPE OF WORK DEFINED AS UNDER –
1. Assessment of Promoters and senior management set-up
2. Assessment of solid waste management industry analysis
3. Technical Assessment
a. Plant configuration
b. Manufacturing Process, Technology used by company and its
evaluation in the context of present and emerging trends in the
industry
c. Assessment of installed capacities, plant wise / product wise
d. Forecast and estimate of future capacity utilization in the context of
technology status and market assessment
4. Raw material requirement, sources and logistic issues
5. Evaluation of utility requirements, manpower availability
6. Financial Analysis
a. Financial Projections for profitability statements, cash flow
statements and balance sheet.
b. Assessment of Working Capital requirements, margin money
requirement.
c. Assessment of needs of financial restructuring for long term debt
sustainability.
d. Operation and Financial Risk Assessment
e. Sensitivity Analysis
7. Conclusions on Technical and Economic Viability of the company’s
operations.
8. Any other aspect relevant to the study may also be incorporated and
justified
1.10 METHODOLOGY
In order to complete the assignment, MITCON adopted following
methodology:
a. MITCON team consisting of technical and financial experts visited
proposed site at Kasaba Bavda village, Tehsil Kolhapur, District,
Kolhapur, Maharashtra on 1st March, 2014.
b. We collected the information on implementation of proposed MSW
project.
c. We have relied upon the information shared by the company and
assessed the said information from the point of view of techno
commercial feasibility.
CHAPTER-2
TECHNICAL FEASIBILITY
2.1 KOLHAPUR MUNICIPAL CORPORATION –

Kolhapur city is located in south-west Maharashtra at Lattitude N 16.430 ,
Longitude E 74.140 and is known as Dakshin Kashi from ancient time. It is a
famous religious place due to Mahalakshmi & Jotiba temples. The city stands
on the bank of river Panchaganga, a tributary of the river Krishna. It has an
elevation of 574 m which is higher than that of Pune. By road, Kolhapur is 228
km south of Pune, 615 km north-west of Bangalore and 530 km west of
Hyderabad. Kolhapur's climate is a blend of coastal and inland climate of
Maharashtra. The temperature has a relatively narrow range between 100C to
350C. Summer in Kolhapur is comparatively cooler, but much more humid,
compared to neighbouring inland cities. Maximum temperatures rarely exceed
380C and ranging between 33 to 350C with average rain fall 1200 mm.
Kolhapur is the sixth most industrialized city in Maharashtra. It is fast

becoming an industrialized district as well and already a front‐runner in agro‐
based industries.
In order to streamline MSW management as per MoEF and GOI MSW

management rule 2000 KMC has planned to develop MSW processing plant at
Kasaba Bavda site on DBFOT basis.
The preliminary information about KMC is given bellow
1 Commissioner Mrs. Vijayalakshmi Prasanna Bidari
Additional Commissioner Mr. Nitin Desai
Deputy Commissioner (1) Mr. Sanjay Herwade
Deputy Commissioner (2) Ashwini K. Waghmale
2 Population 2001 Censes 4,93,167 Souls
Population 2011 Censes 549,283 Souls
3 Area (Km2) 66.82 Km2
4 Population Density 8,200/km2
Agriculture
Agro-Food Processing
Major Business Sugar Industry
Foundries
Education Centers
MITCON team visited the proposed project site on 1st March; 2014 at Kasaba
Bawada, Kolhapur city, Maharashtra State and verified the following –
2.2 LAND -
Land admeasuring nearly 4 Hectare (nearly 10 Acre) is available with KMC to
set up the proposed project. KMC has handed over the same land for
development of waste processing (Waste to Energy) Plant as per RFP
document
The land is bounded as follows –
On or towards Property on Sides
North Private Farms
South Agricultural Collage Farm
East KMC STP Plant
West Survey No. : R.S.845, 2596
(Source: MITCON Team Site Visit)
Please refer Annexure no. 1 for Google image of proposed site at kasaba
Bavda Kolhapur.
At present partial land is occupied by old dumped waste. Old dumped waste
removal process is under process by KMC. There is no civil structure
available on site and the land can be immediately put to use for the project
purpose.
Considering the land conditions, the proposed site allocated by KMC is
reasonably good location.
2.2.1 Proposed Land Utilization –

Land utilization plan has been prepared and accordingly the proposed land
utilization is as under –
Sr. No. Particulars
1 Plot Size
2 Proposed plant area
2 Green Belt
3 Internal Roads
6 U/G Water Tank
7 U/G Fire Fighting Water Tank
8 Fire Fighting Pump
9 Engine Room (shed)
10 Weigh Bridge with ramp
Sr. No. Particulars
11 Weigh Bridge room
12 MSW Bay Area
13 Pollution Control Equipment
14 Security cabin
15 Boiler
16 Boiler Room
17 Transformer room
18 Switch yard room
19 HT/LT room
20 Engine Utility Shed
21 Latchet treatment plant
22 Water Pump room
23 Raw water storage plants
24 Consumer connection S/S & DG set
25 Store room
26 Air Compress
27 DG
28 Parking
29 DM plant
30 Turbine and substation
31 Parking and sanitization facilities
32 Workshop
33 Amenities
* These areas may vary in accordance with detail engineering.
2.3 QUANTIFICATION OF SOLID WASTE GENERATION –
Year wise expected waste generations as per concession agreement, provided
by KMC are as follows.
Sr. No. Financial Year Ending March 31st MSW Quantity (TPD)
1 2015 140
2 2016 140
3 2017 140
4 2018 150
5 2019 150
6 2020 150
7 2021 150
8 2022 150
9 2023 160
10 2024 160
11 2025 160
12 2026 160
13 2027 170
14 2028 170
2029
15 180
(End of Concession Period)
Source: Concession Agreement between KMC & KGEPL
Nearly 140 TPD will generated in year 2015 to 2017, 150 TPD in year 2018 to
2022, 160 TPD in year 2023 to 2026, 170 TPD in year 2027 to 2028 and 180
TPD in year 2029 at end of concession period.
KGEPL has shared the waste characteristics as follows –
2.3.1 Waste Characteristics
SR. Sample No. Sample Avg. of Sample
Parameters Unit
No. I No. II No. I & II
A Physical Analysis
1 Metal % 0 7.1 3.55

2 Paper % 11.4 14.3 12.85
3 Glass % 0 0 0
4 Plastic % 5.7 19 12.35
6 Leather % 8.6 9.5 9.05
7 Wood % 0 0 0
8 Garden Waste % 22.9 16.7 19.8
9 Textile % 8.6 14.3 11.45
10 Food Waste % 20 9.5 14.75
Other (Dirt, % 11.4 9.5
11 Bricks, Stones
..etc.) 10.45
12 Bulk Density Kg/M3 687.5 437.5 562.5
B Chemical Analysis
Gross Calorific Cal/g 5381.99 - -
1
Value
Ash Content at Cal/g 12.26 - -
2
8000C
Moisture Content % 64.39 - -
3
at 1050C
Volatile Matter at % 9.07 - -
4
9000C
5 Fixed Carbon % 14.25 -
6 Carbon % 21.91 - -
7 Hydrogen % 1.69 - -
8 Nitrogen % 0.59 - -
SR. Sample No. Sample Avg. of Sample
Parameters Unit
No. I No. II No. I & II
9 Oxygen % 66.77 - -
10 Sulphur % 0.75 - -
2.4 WASTE PROCESSING TECHNOLOGY EVALUATION PARAMETERS –

Waste management selection technology uses parameters like – ability to
convert to green energy and volume reduction ability to convert it in to gas
thereby generation of power, technique such as Incineration method and more
over public acceptance level.
Following comparative chart with other municipal solid waste processing

technology,
Features Composting Landfill Incineration Gasification

Emission to
Low Median Low Negligible
Atmosphere
Recovery of
Low NIL High High
Energy
Suitability for
various kinds Low N/A High High
of wastes
Rejects back to
High (>60%) N/A Low Low (<15%)
Landfill
Seasonal
High N/A Low Low
Variation
Land Area for
Very High Very High Median Low
MSW disposal
Low(As
Smell Emitted High High Median
System is
Features Composting Landfill Incineration Gasification
completely
Covered)
Low
High (Waste gets
Process Time N/A Low
(>30 Days) disposed of in
the same day)
Construction
High Very High Low Low
Time
Accordingly, (KGEPL) Reverse Push Reciprocating Grate Technology of waste

processing has been evaluated and it stood better performer than other
municipal solid waste processing technologies like composting, land filling and
Biomethanation.
Following comparative chart explains features of different technologies -
End Public
Technology Limitations
Products Acceptance
Technological Commercial
1. Non – 1. Problem in
operational in selling
Monsoon because of
Season poor
Partially
Composting Compost 2. Large space quality due
Acceptable
requirement to inert
3. Threat to materials
public health (Heavy
in proximity Metals)
1. Moisture 1. Lesser
Content is a output of
Limiting saleable
Gasification
factor energy.
/ Energy Acceptable
2. More fuel 2. High O&M
Pyrolysis
required in costs
rainy season
to heat mass
1. Moisture 1. Price
Content is realization
limiting of the
Potential
factor pallets is
for RDF
Palletisation 2. The quite low. Acceptable
&
technology is
Energy
non-
operational
during
End Public
Products Acceptance
monsoon
season.
1. Multi 1. Low
seasonal captive
MSW can be power
acceptable & requireme
there is no nt for
change in burning
Power mass at
Incineration Energy Acceptable
Generation very high
output. temp.
2. The disposal 2. Low O & M
of residual cost
Ash is a
resource
factor.
Thermopholic 1. Efficient
Anaerobic process &
Digestion is quality
the most output.
Energy
suited 2. Compost is
Anaerobic &
technology organic in Acceptable
digestion Organic
for Indian nature &
Compost
conditions: can be
1. Operational used for
all year top soil
round. replaceme
End Public
Products Acceptance
2. It is a closed nt or can
process & be blended
thus there is with NPK,
no nuisance for better
in & around acceptance
site. & price
3. It can be realization.
accelerated 3. The land
through requireme
proper nt is
segregation minimum.
of waste.
Ministry of New and Renewable Energy (MNRE) ministry of Govt. of India has
defined the criteria of selection of waste processing.
An evaluation checklist with the ratings for the different main and sub-
criteria for the five competitive technology options showed the following
overall scores and rank
Technology Score (Max 150) Rank
Biomethanation 107 1
Incineration 83 2
Gasification 80 3
Landfill with gas recovery 75 4
(Source: Ministry of Non-conventional Energy Source)
Incineration technique is at Rank No. 2, since the power generation is more
than bio-methenation per MW capital investment is lower as compared to
other techniques, therefore, KGEPL has decided to adopt Incineration
technology for power generation.
2.5 PROPOSED PROCESS AND TECHNOLOGY :
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
Introduction :
The Single Segment Reverse Push Stoker System shall be capable of
combusting municipal waste.
The reciprocating stoker system will consists of a refuse feeder, a reverse

acting stoker with adjustable device of refuse layer, a combustion control
system and an ash discharge system.
This technology is based on the existing reverse push reciprocation grate, and
its core is in view of the living MSW features of low heat value and high
moisture. The MSW could be more fully burned by Single Segment Reverse
Push Stoker system so as to decrease the heat reduction rate of ash slag. The
primary air used for supporting burning is preheated by secondary air heater
to make the temperature more than 240 ºC to 250 ºC, so as to make the MSW
that enters into furnace dried, fired and burned at a quick speed. The extra air
factor of boiler is designed to be over 1.6, to maintain sufficient oxygen in
boiler and reduce the production of Toxic Equivalent Quantity. AV & UE’s
boiler, high-temperature secondary air sprays into at a high speed to make
sufficient disturbance of flue gas, prolong the residence in furnace, so as to
improve the combustion condition to ensure the flue gas temperature not
lower than 850 deg. C in furnace and residence over 2 seconds.
In view of the situation that the primary air which is used for supporting
burning is difficult to control, division air chambers is designed, that is in
accordance with the different regional features during MSW burning, the air
chamber under the grate is divided into several relatively independent air
chambers, each chamber equipped with air adjust door. Under certain air
pressure, by adjusting the primary air amount in one or several or all air
chambers, the regional or the whole combustion condition could be improved.
The open range of air door and air amount is designed to be linear ratio, and
the combustion condition could be exactly controlled by auto control system.
2.6 PROCESS LOGIC:
STEAM GENERATOR CAPACITY
Boiler Capacity 15 TPH
Steam Pressure 40 KG/cm2
Steam Temperature 400 °C
Fuel Quantity 180 TPD
PIT MANAGEMENT
• 4 to 5 days of the plant capacity is dumped in the pit.
– The garbage is not kept in open as odor has to be managed
– The garbage leaves the moisture and the CV increases due to anaerobic
activity.
• The efficiency of power generation in a steam power plant highly depends on
the pressure and the temperature of superheated steam. In Municipal Solid
Waste (MSW) based waste to energy plants the range of steam parameters is
typically around 46 bar and 410°C. High pressure and high temperature cycles
are crucial for increasing the operating efficiency and the power output from
the Municipal Solid Waste (MSW) Waste to energy plants.
MSW FUEL FIRING GRATE SYSTEM
The moving grate mechanism (normally inclined although horizontal grate designs
are operating) moves the burning solid waste from the inlet to the outlet. Primary
combustion air passes from below the grate underneath the burning solids and flow
through the waste bed into the freeboard zone above the bed. Secondary and tertiary
air injection ports are used to ensure complete combustion of the gas phase
components volatilized from the solid waste. Typical regulations require the flue gas
to be held at a minimum temperature of 850oC for two seconds after the last injection
of combustion air.
MSW based power plant flow diagram
2.7 PROJECT AT A GLANCE

1. MSW Handling Capacity : 180 TPD
2. Calorific value of MSW : 1250Kcal/Kg
3. Gross Power Generation (MW) : 1.80 MW
4. Annual operating period : 7008 Hrs
5. Plant load factor : 80%
6. No. of boilers to be installed : One (1)
7. Capacity of the Boiler (MCR) : 1 x 15 TPH
8. Boiler Outlet Steam : 42 ata, 400 ºC
9. Fuels used for the Boiler : MSW
10. No. of turbo generators to be installed : One (1)
11. Type of condenser : Water cooled
12. Power Plant aux. Consumption (MW) : 360 KW
2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
Better combustion & longer life
Grate bars made of – corrosion resistant, heat resistant cast

steel alloy
Fuel Feeding System
Feeding system shall be a hydraulic RAM which is a proven system.
Feeder operation for 100% MCR considered to take care of variation in fuel
physical properties
Fuel Spreading System
Pneumatic spreading system for uniform distribution to the entire grate
Combustor
Higher excess air to maintain optimum grate temperature of less than 950 °c
Because of High excess air no ash fusion & clinker formation on the grate
Secondary air at correct location to ensure better air penetration & turbulent
mixing and better post combustion
Furnace 1st pass with special type refractory lining low gas velocity & long
residence time
Refractory lining take care of furnace corrosion due to change in atmosphere
ENVIRONMENTAL MANAGEMENT PLAN:
The plant engineer will draw a schematic plan for plantation, gardening, drainage
system to enforce proper implementation & reporting to plant engineers.
Pollution Control:
 Power plant main pollution is boiler waste gas with ash dust for which
Electro Static precipitator (ESP) is fitted. Ash is collected at bottom and
pneumatically conveyed collected in Ash silo, Ash mixed with water from
ash silo by tuck dispatched to dumping yard. Ash can be used for cement
manufacturers. Fine ash from ESP contains 92% silica, which can be for
silica gel of pure silica by chemical reaction. It gives a rich dividend.
 Water pollution is little during cooling tower blowing and D.M. plant blows
acidic or alkaline water, which is neutralized, in small tank. The water is
ultimately used in plantation.
Control Method of Air Pollution:
 Air pollution is controlled through E.S.P. and outlet air form ESP having 50-
mg/mg3 airs is discharged to atmosphere at 55-meter stake height
chimney.
 Dust area bag filters (suction) type is fitted to collect dust in fitter bags & a
little water spray arrangement (sprinkler) controlled avoid reducing air
pollution.
Control of Water Pollution:
 Water pollution is little as explained it is neutralized in small tanks. Then
water is used for gardening purpose.
Control of Thermal Pollution:
 Thermal pollution at initial stage taken care by each equipment suppliers,
boilers, ESP,T.G. steam pipe line, all are woolen with aluminum cladding
covered which will reduce heat loss. This power plant thermal cycle unit
loss of thermal energy is inefficient operation.
Control Method of Noise Pollution:
 All Equipment maintenance noise below 20 dB during steam exhaust in air
goes up to 80 db. Power residential area steam exhaust have silencer but
during turbine tripping steam are exhausted to air to bring down the boiler
pressure.
2.9 MACHINERY -
Equipment & Technology Supply
SHEL will source equipment from AV-UE. The indicative list of indigenous
equipments is as under:
Sr. No Equipments
1 Weigh Bridge
2 Refuse Bunker
3 Refuse Crane
4 Charging Hopper
5 Chute
6 Feeder
7 Stoker
8 Clinker Roller
9 Ash Extractor
10 Ash Cane
11 Ash Pit
12 Forced Draft Fan
13 Waste Heat Boiler
14 Fabric Filter
15 Induced Draft Fan
16 Stack
17 Crane Control Room
18 Control Room
2.10 MAN POWER REQUIREMENTS –
Designation Quantity
Plant Manager 01
Manager E and I 01
Asst. Manager Utility Maintenance and 01
Project
Operation Team
Shift Incharge (Electrical / Mechanical) 01
Shift Technician (Electrical) 01
Shift Technician (Mechanical) 01
Boiler Operation Team
Shift Engineer (Electrical / Mechanical) 01
Shift Technician (Electrical) 01
Shift Supervisor - Non 01
Technical(Production of MSW)
Utility, Engine Room & Substation Area-
Operation/Maintenance
Shift Technician (Electrical/Mechanical) 01
Maintenance –Boiler & Ash Handling
System
Shift Technician (Mechanical) 01
Environmental Management
Plant Engineer 01
Designation Quantity
Stores
Stores/Purchase Manager 01
Asst. Stores 01
General
Admin and HR Executive / liasoning 01
Security Supervisor cum safety Officer 01
Weigh Bridge Operator 01
JCB Operator _Company JCB 02
Quality Controller(GCV, Moisture, Gas 01
Analysis)
Driver 01
Office Peon 01
Out Sourced Labour
Security Supervisor and Guards 01
Manual Segregation Labour Team 01
2.11 STATUTORY & NON-STATUTORY APPROVALS
Sr. Concerned
Approval/Clearance Responsibility
No. Agency
Site authorization under MSW
1 MPCB Concessionaire
Rules
Consent to establish under the
2 MPCB Concessionaire
Air and Water Act
NOC from Fire Department, Fire Department,
3 Concessionaire
KMC KMC
4 Disaster Management Plan DMD, KMC Concessionaire
5 Electricity Approval MSEDCL Concessionaire
6 Power Generation and Purchase MERC/ MEDA Concessionaire

7 Plant Layout Drawing KMC Concessionaire
8 Water supply Water Dept, KMC Concessionaire
MPCB : Maharashtra Pollution Control Board.

DMD : Disaster Management Department, KMC
MSEDCL : Maharashtra State Distribution Company Ltd.
MERC : Maharashtra Electricity Regulatory Commission.
MEDA : Maharashtra Energy Development Authority.
2.12 CONCLUSION
On the basis of Technical Scrutiny of the upcoming unit, we are of the opinion
that -
1) KGEPL proposes to implement Reverse Push Reciprocating Grate technology
of converting municipal solid waste to energy.
2) KGEPL will source Equipments from AV-UE.
3) Provision of machinery, utilities, and misc. assets are adequate.
4) The infrastructure in the form of building and sheds is adequate to support the
projected production.
5) Company proposes to induct training programs with the help of technology
provider and therefore should not face any problem for implementation of
project.
6) Based on the data provided and observations during the site visit, the project
is considered to be technically feasible.
CHAPTER-3
MARKETING VIABILITY
3.1 SOLID WASTE MANAGEMENT -

Solid Waste Management is a part of public health and sanitation normally
dealt with by local bodies like Municipal Corporations. It is essential
obligatory functions of the Urban Local Bodies in India. This service is falling
too short of the desired level of efficiency and satisfaction resulting in
problems of health, sanitation and environmental degradation.
It is estimated that the total solid waste generated by 300 million people
living in urban India is 38 million tonnes per year (MSW Manual). The
collection and disposal of municipal solid waste is one of the pressing
problems of city life, which has assumed great importance in the recent past.
With the growing urbanization as a result of planned economic growth and
industrialization, problems are becoming acute and call for immediate and
concerted action. The proper disposal of urban waste is not only absolutely
necessary for the preservation and improvement of public health but it has
an immense potential for resource recovery.
World oil prices increased by more than 50% during the seventies, i.e.
subsequent to the oil embargo by OPEC (Organisation of Petroleum
Exporting Countries). This necessitated a global search for alternative energy
resources. The Government of India recognized this potential and formulated
a separate ministry, Ministry of Non-Conventional Energy Sources (MNES) in
the year 1992. The functions of MNES is to co-ordinate, fund, manage and
implement the projects in the nonconventional energy sector utilizing
resources such as the wind, solar, biogas, hydro and geothermal and urban
and industrial waste in the country. There is an exclusive group in MNES,
which deals with "Energy Recovery from Wastes". The waste-to-energy
projects are implemented through National Programme on Energy Recovery
from Urban and Industrial wastes and UNDP/GEF.
Municipal Solid Waste (MSW) emerged as a potential energy source owing to

several desirable attributes – high organic and low sulphur contents. Other
wastes originating from animal and agricultural farms also has a high
proposition of organic matter an also be utilized for energy recovery.
The primary objective of National Master Plan (NMP) is to provide additional

power generation capacity in a decentralized manner through projects for
energy recovery from urban and industrial wastes in a cost effective and
proven manner using technologies that are applicable to the Indian
community, conditions, and support ongoing adaptation to meet
implementation needs and also provide vital solutions to the environmental
problems including reduction in GHG emissions.
Waste-to-Energy projects form an integral but small part of the overall waste
management strategy. Its future growth is, hence, inseparably linked with the
progress made by the country in waste management.
At present, MNES is implementing a Program on Energy Recovery from

Urban Wastes with the following objectives:
 To harness the available potential of MSW-to-energy;
 To promote the setting up of projects for recovery of energy from urban
wastes; and,
 To create a conducive environment for the development and
implementation of waste-to energy projects.
As per MNES the potential of the MSW for conversion to energy is presented
as bellow.
Power Generation
Period MSW Generated (TPD)
(MW)
2002 97174 1638
2007 130927 2266
2012 189986 3276
2017 265834 4566
Under the Municipal Solid Wastes (Management & Handling) Rules of

December 2000, all Class I cities have to provide proper treatment and
disposal facility for MSW. This translates to a very significant potential for
WTE projects.
The rationale for the targets and time frame for the NMP is based on
achieving the Waste-to-Energy potential of Urban and Industrial sectors as of
2002 by the end of the 12th Five Year Plan (2017).
For the Eleventh and Twelfth Five Year Plans the targets are based on the
successful implementation of the above strategies and accelerated growth in
implementation of WTE projects to achieve the final targets at the end of the
Twelfth five year plan.
Based on the above rationale, the targets and time frame for the period 2004
to 2017 are developed and are presented as bellow.
Source: MNES
From the analysis of Commercial Viability, it is evident that no subsidy

is required for MSW to Energy Projects during the 11th and 12th FYP.
The role of the Government in form of financial support is hence not
required. Since however these projects are environmentally necessary
and socially relevant the NMP provides for funds at a reasonable
interest rate through a credit line to encourage speedy implementation
of such projects.
3.2 REGION WISE WTE POTENTIAL IN INDIA

As Municipal Solid Waste (MSW) management is the primary responsibility
of the Local Bodies and at present gets some financial support from the
MoUD. Support from MNES is restricted to Waste-to-Energy projects only.
For summarizing the waste potential the cities were divided into the four
categories based upon the population of the city (Year 2001). The
characteristics of the Cities are defined as:
1) South Region
2) North Region
3) Western Region and
4) Eastern Region
City is considered as big or small depending on its population. The criteria of

defining big city or small city is as under –
Sr. No. Categories Population
1 Very Big Population More Than 15 lacs
2 Big City Population between 10 to 15 lacs
3 Medium City Population between 5 to 10 lacs
4 Small City Population < 5 lacs
5 Megacity Population more than 50 Lacs
6 Metropolis Population between 10 -50 Lacs
7 Sub-Metropolis Population between 5-10 Lacs
8 Class I Population more than 1 lacs
9 Class II Population between 0.5 to 1 lacs
10 Class III Population between 0.2 to 0.5 Lacs
11 Class IV Population between 0.1 to 0.2 Lacs
12 Class V Population between 0.05 to 0.1 Lacs
13 Class VI Population More Than 0.05 Lacs
1) South Region
On the basis of above criteria, Cities in Southern India are divided in
following categories
Sr. No. Categories No. of Cities
1 Very Big 3
2 Big City 1
3 Medium City 11
4 Small City 94
The class I cities of the southern region generate about 24720 tons of solid
waste every day, of which about 10215 tons is generated from the very big
cities like Hyderabad, Chennai and Bangalore. The big cities in the zone
generate about 490 tons of solid waste and medium size cities generate solid
waste to a tune of about 4325 tons per day (17% of the total solid waste
generated in the region). The total solid waste generation in the small cities is
about 39% of the generation in the region, which is about 9690 tons/day. The
quantum of solid waste generated in each category of city is shown in pie
chart below.
MSW Generation in South Region

very Big Big Medium Small
39% 42%
17% 2%
2) North Region
On the basis of above criteria, Cities in Northern India are divided in
following categories
1 Very Big 4
2 Big City 7
3 Medium City 11
4 Small City 96
About 29682 tons of solid waste is generated every day in class I cities of
northern region of the country, of which about 13110 tons is generated from
the very big cities like Delhi, Kanpur, Lucknow and Jaipur. The big cities of
the region generate about 4372 tons per day, medium size cities generate
solid waste to a tune of about 4137 tons per day (14% of the total solid waste
generated in the region). The total solid waste generation in the small cities is
about 27% of the generation in the region, which is about 8063 tons/day. The
quantum of solid waste generated in each category of city is shown in pie
chart bellow.
MSW Generation in North Region

27%
44%
14%
15%
3) Western Region
On the basis of above criteria, Cities in western India are divided in following
categories
1 Very Big 7
2 Big City 6
3 Medium City 13
4 Small City 69
About 28785 tons of solid waste is generated every day from class I cities of
western region, of which about 18479 tons is generated from seven very big
cities. Around 2790 tons of solid waste is generated from big cities. The
medium size cities generate solid waste to a tune of about 2958 tons per day
(10 % of the total solid waste generated in the region). The total solid waste
generation in the small cities is about 16% of the generation in the region,
which is about 4559 tons/day. The quantum of solid waste generated in each
category of city is shown in pie chart below.
MSW Generation in Western Region

16%
10%
10%
64%
4) Eastern Region
On the basis of above criteria, Cities in Eastern India are divided in following
categories
1 Very Big 1
2 Big City 2
3 Medium City 6
4 Small City 92
About 13986 tons of solid waste is generated every day in the eastern region
of the country, of which about 6962 tons is generated from the city of
Calcutta. The big cities generate about 934 tons per day and medium size
cities generate solid waste to a tune of about 1158 tons per day (8.2 % of the
total solid waste generated in the region). The total solid waste generation in
the small cities is about 35% of the generation in the region, which is about
4931 tons/day. The quantum of solid waste generated in each category of the
cities in eastern region is presented in pie chart below.
MSW Generation in Eastern Region

35%
50%
8%
7%
3.3 MUNICIPAL SOLID WASTE GENERATION -
The large quantum of diverse wastes originating from urban and industrial
activities can be considered as a valuable renewable energy resource.
As per MNES structural database quantum of solid wastes generated by 299

(Class I) and 36 (Class II) cities. The total quantity of the urban waste has
been estimated to be 64000 TPD of solid. The energy potential that can be
realized from solid waste by adopting thermal processes from MSW has been
estimated to be 1300 MW.
MSW Capacity (TPD)
Parameter
>1000 500-1000 500-150 <150
Grade A Cities
Zones
North 4 6 3 11
South 3 3 13 12
West 5 2 8 5
East 1 0 3 7
Total No. of Cities 13 11 29 35
Waste Quantum
1150-9786 515-865 150-475 45-140
Range (TPD)
Energy Potential
15-143 Jul-17 02-Aug 0.67-2
Range (MW)
Grade B Cities
Zones
North 1 2 6 45
South 0 2 10 50
West 1 2 11 36
East 0 2 5 36
No. of Cities 2 8 32 167
Waste Quantum
1079 -2142 502 - 712 152-359 25-148
Range (TPD)
Energy Potential
16 - 31 07-Nov 1.8-4.7 0.37-2.7
Range (MW)
Source: MNES
As per Ministry of Non Conventional Source power generation potential are
6913 MW based on 50:50 proportion of biological and thermal WTE
conversion options on twelfth (2012-2017) five year plan.
Zone-wise distribution of cities on MSW generation rates
City / Category
North South West East
MSW Total
No. No. No. No. %
Generation TPD
TPD of TPD of TPD of TPD of
Cities Cities Cities Cities
> 1000 14309 5 10214 3 17648 6 6963 1 49134 51
500 – 1000 3044 5 503 1 1696 2 628 1 5871 6
250 – 500 4297 12 4597 12 3410 10 568 2 12872 13
150 - 250 1199 6 2366 13 2155 12 1047 6 6767 7
50 – 150 6441 82 7041 80 2378 27 2907 38 18766 19
< 50 391 8 - - 1499 38 1874 53 3764 4
Total 26274 80 24977 93 29231 71 15987 55 97173 100
Projections of MSW to Energy Generation potentials

Sr. No. Year MSW Generation Energy Potential
(TPD) (MW)
1 2002 96419 1455
2 2007 135213 2448
3 2012 199952 4064
4 2017 260881 6913
The potential energy recovery estimates based on biological and thermal

technologies for handling urban solid waste equivalent to total 64,000 TPD
generation of MSW are shown in Table below. The estimated
powergeneration potential from MSW are 1461 MW (2001-02), and 2667,
3275 and 4565 in the year 2007, 2012 and 2017.
Power Generation Potentials based on MSW/WTE technologies
Five Year Plans Target / Potential
Sr. No. Details Unit 2001-
2006-07 2012-13 2016-17
02
A. Capacity: >1000 TPD MSW Generation
1 No. of Cities 15 19 28 41
MSW
TPD 49135 79972 127748 195526
Generation
Energy
MW 835 1400 2230 3388
Potential
B. Capacity: 500 - 1000 TPD MSW Generation
2 No. of Cities 9 19 28 35
MSW
TPD 5870 13184 19610 24120
Generation
Energy
MW 110 232 351 416
Potential
C. Capacity: 250 - 500 TPD MSW Generation
3 No. of Cities 30 40 56 64
MSW
TPD 10605 14098 19295 23542
Generation
Energy
MW 186 246 304 382
Potential
D. Capacity: 150 - 250 TPD MSW Generation
4 No. of Cities 30 47 60 76
MSW
TPD 5518 8953 11504 15093
Generation
Energy
MW 87 143 192 253
Potential
E. Capacity: 150 - 250 TPD MSW Generation
5 No. of Cities 215 174 127 83
MSW
TPD 15098 14720 11829 7554
Generation
Energy
MW 243 246 198 126
Potential
F. Total
MSW
TPD 86226 130927 189986 265835
Generation
Energy
MW 1461 2267 3275 4565
Potential
3.4 IMPORTANCE OF SOLID WASTE MANAGEMENT : CONCEPT OF WASTE TO

ENERGY
Waste-to-energy concept is a matter of great concern to various stakeholders
- urban local bodies, the state government, state pollution control boards, the
environmental service providers and the public at large owing to the multiple
benefits of resource recovery, energy recovery, waste management and
disposal, environmental compliance, reduced GHG emissions and
environmental impacts.
3.5 REDUCTION IN GREEN HOUSE GAS (GHG) EMISSIONS -

The waste to energy plants will also reduce the emission of the GHG by
capturing the gas generated and converting it into electricity. Thus;
accomplishing the objective of the providing vital solution to the
environment.
The quantum of the GHG that will be captured while achieving the targets is
illustrated through figure bellow. Around 228500 tons of carbon equivalence
GHG will be captured before the end of the twelfth five-year plan. This
quantum is based on the total estimated potential of energy generation from
MSW and industrial wastes.
Above all figures shows the huge potential of Waste to Energy projects in
India. To achieve above targets government has announced some incentives.
Summary of the Policies of the Various States

Land Garbage Power
Uttar @Rs.1/sq.m/yr. Free at site @ 2.25/unit
Pradesh escalated 5%
(94 – 95)
Madhya Use of Govt. land, Agreed to be Rs. 2.25/unit
Pradesh if available, will provided free of (94-95)
be permitted for cost for specific
30 years. projects. Royalty
Otherwise, land to be paid to MC.
will be made
available at
acquisition cost
Tamil Nadu @Rs.10,000/acre Can be lifted free @ Minimum
/yr. For 30 years, from dumping tariff quoted
near/at dumping sites by
sites entrepreneurs
Andhra On lease. Terms Preference to -
Pradesh not specified those who lift at
their cost or lift
50% and pay
royalty
Karnataka - - Rs.2.60/unit
(1997-98)
Haryana - - @2.25/unit
(1994-95) +
5%
escalation
every year
Maharashtra At nominal lease MC will take @2.25/unit +
rent responsibility to 5%
provide requisite escalation
MSW for the every year
projects
Summary of Indian Legal Framework for WTE Projects

Acts/ Rules/ Brief Description Remarks
Notifications
The Water (Prevention Provides for the WTE projects
and Control of prevention and control discharging
Pollution) Act, 1974 of water pollution as wastewater from the
well as restoration of units will have to
water quality conform to the rules
prescribed under this
Act.
The Water (Prevention Provides for the levy For abstraction and
and Control of and collection of a cess use of water for the
Notifications
Pollution) Cess Act, (tax) on water unit.
1977 consumed by persons
carrying on certain
industries and by local
authorities
The Air (Prevention Objective is to prevent, Company will have to
and Control of control and reduce air control emissions of
Pollution) Act, 1981 pollution including dust and noise, during
noise pollution the construction and
operation phase,
including exhausts
from vehicles.
The Environment An umbrella legislation In general, the WTE
(Protection) Act, 1986 that takes into plants will have to
accounts all the aspects consider the
of environment. requirements under
Management of the EP Act. This is
hazardous chemicals, likely to include the
wastes, micro- EIA notification as
organisms, etc. also well.
included
Environment It gives standards for Compliance required.
(Protection) Rules, emission/ discharge of
1986 and their pollutants, procedures
amendments from for taking samples,
time to time(up to
2001)
Bio - Medical Waste These rules apply to all Bio - medical waste
Notifications
(Management and persons who generate, rules are applicable to
Handling) Rules, 1998 collect, receive, store, WTE projects and
transport, treat, their compliance is
dispose or handle bio - required
medical waste
in any form
Notification for Coastal Declared the coastal This shall be
Regulation Zone (CRZ), stretches of seas, bays, applicable if the WTE
1991 estuaries, creeks, rivers plant falls under the
and backwaters which CRZ designated area..
are influenced by tidal
action, up to 500 m
from the high tide line
and the land between
the low and high tide
lines
The Hazardous Prescribe guidelines Hazardous waste that
Waste(Management for handling hazardous is likely to be
and Handling) Rules, wastes produced in the event
1989(amended 2000) of WTE projects have
to follow these rules.
Municipal Solid Waste These rules apply to all Compliance required.
Rules those municipal
authorities that are
responsible for
collection, segregation,
storage, transportation,
processing and
Notifications
disposal of municipal
solid wastes.
Indian Electricity Act Governs the relations Issue of licensees for
between the consumer the generation,
and licensee supplying distribution and
electrical energy to the supply of electrical
consumer or other energy. Compliance
licensees required.
Policies and Guidelines Prescribes various Proponents should be
of MNES incentives and complying with the
eligibility eligibility criteria to
criteria for setting up avail the incentives
of Waste-to-energy promoted by MNES.
plants.
State Level Policies Describes the policies/ Proponents should
incentives given by comply with various
various state provisions policies
governments to and guidelines of
promote WTE projects different states
The 74th Constitutional Delegates the Municipal
Amendment responsibility of MSW Corporations should
disposal with the find efficient ways of
municipal MSW treatment and
corporations. disposal.
3.6 FLYASH BRICK MARKET VIABILITY
USES AND APPLICATIONS
Fly ash bricks are used in building industry.
Fly ash Sand-Lime bricks Building industry:
Fly ash sand-lime bricks can be used as an alternative material for burnt clay
bricks which is one of the important building materials used for construction
of housing and buildings. The fly ash building bricks are unable in all types of
brick masonry works and can substitute the conventional burnt clay bricks in
nearly all applications.
Advantages of Fly ash sand-Lime bricks:

1. Uniform size, require less quantity cement mortar.
2. Can be used as facing bricks without any external plastering.
3. Lower bulk density.
4. More resistant to salinity and water seepage.
5. Utilization of waste and conservation of soils.
6. Saving in fuel.
MARKET SURVEY
Construction work is basis to out development efforts - for agriculture and
industry for the development of water, power transportation and
communication system and certainly for housing the people so that their living
standard can be upgraded to promote their welfare and happiness.
Construction accounts for about 50% of the total development all our lays; but
the scale of Housing shortage along should be sufficient to dispel any illusions
as to be adequacy of our present efforts. It is imperatives therefore, that no
lower the construction cost substitute; materials of improve performance can
be developed and made available for mass scale use in developed and made
available for mass scale use in urban as well as rural areas. Lime an excellent
cementing material in terms of its workability imperviousness, inherent
strength etc. is ideal for this purpose. Lime along in conjunction with
puzzolenic material like fly ash can prove a good substitute for cement. In
India is the estimate production capacity of all the brick industries is about
900 million which is far below the market demand and the shortfall is likely to
increase manifold in future years during which a large increase in the building
activity is anticipated. It is well recognized that traditional method of hand
moulding cannot cope with the heavy demand.
Utilization of Bottom Ash

As a by-product from the treatment of Municipal Solid Waste in Waste to
Energy plants based on AV & UE’s Reverse Push Reciprocating Grate
Technology, 35% of ash is generated from the total waste incinerated. Bottom
ash being the major stream, it can be utilized or sent to landfill.
Bottom Ash Generation

AV & UE based Waste to Energy facilities produce clean renewable energy
through the incineration of Municipal Solid Waste. The non combustible
fraction of the waste in the furnace forms a residue (ash) remaining on the
grate at the completion of the combustion cycle. This residue is referred as
bottom ash consisting primarily of glass, ceramics, ferrous & non ferrous
metals & minerals. Hitachi Zosen power plants equipped with the most
modern pollution control equipment to clean emissions. MSW volume is
reduced by 90% which results in generation of electricity and the remaining
residue is bottom ash which is tested and put to reuse.
Utilization of Bottom Ash

The bottom ash can be utilized for various purposes consisting for brick
manufacturing to road, building & other civil construction works. Bottom ash
can further be utilized for embankments & filling material for reclamation.
In Kolhapur the bottom ash is in demand with various brick manufacturers.
There are 10 to 15 brick manufacturing kilns located within a radius of 30 Kms
from the project site. Some of the popular brick manufacturers with whom
discussion took place are as follows:
1. Essarcon
2. Narasinha Tiles Center
3. Tara Tiles Pvt. Ltd.
4. JD Group
5. Creative Pavers Manufacturing Co.
Appendix
GOVERNMENT OF ANDRA PRADESH

ABSTRACT
MUNICIPAL SOLID WASTE MANAGEMENT – Recommendations of the
Technical
Committee and the State Level Official Committee – Accepted – ordered and
sued.
MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (F)

DEPARTMENT
G.O.RT. NO. 4425 Dated: 16.12.1995
Read:
1. G.O. RT No. 1117 M.A. (F) Department, Dt. 26.9.1995

2. G.O. RT No. 1133 M.A. (F) Department, Dt. 29.9.1995
3. From “the Secretary to Government,” D.O. Lr.No. 20340/F3/95,
dt.22.11.1995.
4. Minutes of the Meeting of the State Level Official Committee
headed by Chief Secretary on 24.11.1995.
O R D E R:
In the G.C. 1st and 2nd read above Government have constituted the
Technical Committee and the State Level Official Committee to undertake
Techno-Economic assessment of the bids received by this Municipal
Corporation of Hyderabad in connection with establishment of Power
Generation Plant by using garbage and other Municipal Solid Waste or inputs.
The Technical Committee after examination of the bids received made certain
recommendations for the consideration of the State Level Official Committee
for taking further decision. The State Level Official Committee which met on
24.11.1995 under the Chairmanship of Chief Secretary has considered the
recommendation of the Technical Committee and accordingly accepted the
recommendations of the Technical Committee which are given below.
i) All the technologies offered be tried out.

ii) Preference to be given to the bidders who offer free lifting of the garbage and
also take responsibility of that segregation of non-bio-degradable material
and their proper dispersal.
iii) Technical Committee to call prospective bidders who offered royalty only for
negotiations to convince them from lifting of garbage to the time of 50% of
their requirement.
iv) Only 50% of the total garbage generated is set apart for the promoters who
intend to lift this garbage free of cost to avoid possible dislocation of garbage
lifting in the event of these promoters failing to lift garbage and also to utilise
the available infrastructure with Municipal Corporation of Hyderabad for
lifting the garbage.
v) Tentatively Garbage allocations in the Municipal Corporation of Hyderabad
area are made as follows:
1. M/s. Global Business Development, Consultants, Virginia 600

TPDConsultants, Virginia
2. M/s. La Tech/Infrasystems Limited, Bombay 300 TPD
3. M/s. Quantum’s Tech. LLC, Texas 300 TPD
4. M/s. Navega Engineers Private Limited, Hyderabad 400 TPD
5. M/s. Salco International Limited, Hyderabad 400 TPD
-----------
Total 2000 TPD
vi) The allocation of areas for free lifting of garbage be clearly demarcated. They
may be partly in Municipal Corporation of Hyderabad area and partly in the
surrounding municipal area to suit the convenience of the parties.
vii) The power and water required may be arranged at the sites on payment
terms, Andhra Pradesh State Electricity Board and Hyderabad Metro Water
Supply & Sewerage Board shall make necessary arrangements to supply
power and water at the selected sites. Municipal Corporation of Hyderabad
may inform the requirements to the respective departments.
viii) The land required by the respective promoters be allocated on lease.
Wherever necessary further alienation or acquisition may be initiated by
Municipal Corporation of Hyderabad.
ix) The agreement to be concluded with the prespective, promoters be carefully
worded in consultation with the Standing Counsel of Municipal Corporation
of Hyderabad to avoid any possible future legal implications and safeguard
Municipal Corporation of Hyderabad interests.
x) To avoid delay in commissioning the plants, a performance guarantee of
2.5% of the total Project cost be obtained by way of Bank Guarantee/FD
pledged in favour of Municipal Corporation of Hyderabad.
xi) The existing general guidelines and policies for power purchase, wheeling,
banking etc, are to be followed.
xii) Municipal Corporation of Hyderabad shall ensure that the work on projects is
started within a maximum period of one month.
1. Municipal Corporation of Hyderabad may insist on installation of

incinerators at various major hospitals viz. Osmania General Hospital,
Gandhi General Hospital, N.I.M.S., Appollo, C.D.R.,etc. Municipal
Corporation of Hyderabad may also organise getting up General
incinerator for all other small hospitals to start it on no loss no profit
basis. Privatization of this central incinerator can be examined by
Municipal Corporation of Hyderabad. This may be worked out in
consultation with Andhra Pradesh Pollution Control Board.
2. Government after careful examination of the report of the State Level

Official Committee, accept the recommendations of the State Level
Official Committee and accordingly direct the commissioner,
Municipal Corporation of Hyderabad for initiating necessary further
action on these recommendations immediately.
3. Government also direct that the procedures adopted for the Municipal
Corporation of Hyderabad are approved by the State Level Official
Committee shall be applicable to all the Selection Grade Municipalities
and other Municipal Corporations in the State of Guntur, Warangal,
Kurnool and Visakhapatnam with the condition that the entrepreneur
shall be impressed upon to collect and lift garbage at his own cost in at
least 16th or 17thy area in each town closer to the garbage disposal
yard.
4. The Technical Committee constituted for Hyderabad Municipal

Corporation in the reference road, above, shall negotiate with the
companies who are interested to recycle solid waste into manure or
pelletisation to undertake the work in other Municipal areas. On the
recommendations of the Committee, the Municipal Corporations and
the Selection Grade Municipalities can enter into agreements with the
companies selected. Government also permit the Municipal
Commissioner of the Corporations and Selection Grade Municipalities
in the State to enter into lease agreements with the selected
entrepreneurs for leasing out the extent of land belonging to the
Municipality/corporation acquired for the establishment of plant and
machinery following the procedure laid down under the relevant Act
and Rules.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
C. ARJUNA RAO,
PRINCIPAL SECRETARY TO GOVERNMENT
To
The Commissioner, Municipal Corporation of Hyderabad
All this commissioners of Selection Grade Municipalities/Corporations
Copy to
Members of Committee
P.S. to Chief Secretary
P.S. to Principal Secretary, U.A. & U.D. Dept.
P.S. to Secretary, M.D and U.D Dept
VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT FOR
FACILITATING WASTE TO ENERGY PROJECTS
MADHYA PRADESH
In line with the policy of the Government of India, the Govt. of Madhya
Pradesh has decided to give the following incentives for development of non-
conventional energy sources.
1. Any industry, institution or a private agency, desirous of installing a power
generating unit based on non-conventional energy sources like mini- micro
to hydel projects, wind energy, bio- energy ,solar energy etc. in Madhya
Pradesh shall be welcomed to establish such a unit & shall be eligible for
incentives.
2. The party may set up the unit either by itself or as a joint venture with M.P
UrjaVikas Nigam Ltd.
3. There will be no restriction on generation capacity. The parties may use the
power generated themselves at the point of generation or any other place or
sell it to MPEB or to a third party, but the third party must be an I.I.T
consumer of the Board.
4. For wheeling of power from the point of generation to any other place for the
party’s own use or for selling it to a third party, wheeling through MPEB’s
transmission /distribution system will be allowed on payment of 2%
wheeling charges .The state government will separately compensate MPEB
towards line losses etc. at the rate of 4% of the power wheeled. The wheeling
charges will be irrespective of the distance to which the power is wheeled.
5. Power generated through non – conventional energy resources will be
purchased by MPEB at the rate of Rs.2.25/unit .For sale of power to a third
party, the rates are to be settled mutually between generating party and third
party.
6. Electricity generated from non- conventional energy sources, sold to MPEB
or a third party or consumed by the party itself will be exempted from
payment of electricity duty for 5 year.
7. Any industrial unit which is a consumer of MPEEB and which establishes a
power generating unit from non – conventional energy sources for its own
use will be given exemption from the demand cut to the extent of 30% of the
installed capacity of non-conventional energy unit.
8. Metering equipment for the sale of power will be provided by the party at its
cost at the points decided by MPEB.
9. The transmission /distribution lines and transformers required for
transmitting power from non-conventional energy generating unit to the
nearest grid substation of MPEB and also equipment required for
synchronizing, protection etc.will be provided by the party as per
specifications of MPEB or these can be provided by MPEB at the cost of the
party. However, these lines /equipment will be maintained by MPEB , but the
party will be required to pay operation and maintenance charges as decided
by the MPEB.
10(I) Use of government land if available will be permitted to the party
initially for a period of 30 years subject to removal.
(II) In case of non- – availability of Government land, the Government will
acquire private land and made available to the part at acquisition cost.
No service charges will be payable.
11 Plant and machinery, which is installed for generation of power from non- –
conventional energy sources, shall be exempted from State sales Tax.
12. (I) Any eligible industrial undertaking setting up non- conventional power
generation system in the state of Madhya Pradesh will be allowed Sales
– Tax exemption or deferment or composite benefit to any one of its
industrial units on the investment on non–conventional power
generation system. Benefit under this scheme will be available for
maximum six years and quantum of sales Tax benefit will be available
up to the eligible investment on non- – conventional power generating
system. Such an entrepreneur will be required to indicate the name of
his industrial unit and give his option out of the aforesaid alternative
incentives at the time of application.
(ii) Sales Tax exemption – An industrial undertaking situated in Madhya
Pradesh will be eligible for Sales Tax exemption on the goods
manufactured and sold.
(iii) Sales Tax Deferment – Under the sales Tax deferment Scheme, the
recovery of Sales tax collected by the industrial undertaking situated in
Madhya Pradesh on the sale of goods manufactured by it, which is
payable to the state government will be kept deferred for the period
during which deferment is available, after expiry of which it will be
recovered in six annual interest free installments.
(iv) Composite benefit – Under this scheme, eligible industrial undertaking
can makecertain transactions under exemption and certain transaction
under deferment scheme and avail the benefit accordingly.
(V) Under the scheme of Sales tax Deferment or composite benefit, the
amount so deferred will be recovered in six annual installments
beginning from the next financial year, after the unit has exhausted its
eligible amount.
13. If any party setting up non- conventional power generation system in
Madhya Pradesh, sells its power generation to any other industrial unit (for
which rate of power will be settled as per mutual agreement between the
generator and user industrial undertaking can avail the exemption on the
sales tax of its deferment or composite benefit, etc to the extent of eligible
investment on non- conventional power generating system.
14. Power generating units based on non – conventional energy sources will be
treated like an industry and all the concessions applicable to new industrial
units will be applicable to these power generating units also.
15. The parties desirous of setting up non – conventional power generating
system will be required to give their applications to M.P UrjaVikas Nigam Ltd.
with a copy to Secretary, M.P. Electricity Board, and Jabalpur. After approval
by M.P UrjaVikas Nigam, the generating unit and also the user unit will be
required to enter into necessary agreements with M.P Electricity Board.
Generation of Electricity from the Garbage
Proposals from certain organisations – Policy decision taken by the
government –
Orders issued
MUNICIPAL ADMINISTRATION OF WATER SUPPLY DEPARTMENT

G.O.Ms.No.15 Dated: 17.1.1997
Read:
From the Commissioner, Corporation of Chennai,

D.O.lr.No.A7/1527/96 dated 3.10.1996
ORDER
Certain institutions have presented project proposals for generation of
Electricity form garbage collected in Chennai City area. They have requested
the Government for an assured supply of garbage, allotment of lands near the
dumping centers of Corporation of Chennai, and an assurance regarding
purchase of electricity produced by them out of garbage by Tamil Nadu
Electricity Board at an acceptable price.
The Government has examined these proposals in detail. The project if
implemented will not only help in solving the problem of finding new
dumping sites for garbage but also help us in the upgradation of overall
development. Considering the usefulness of the project a policy decision has
been taken on the various issues and accordingly the Government Issue the
following orders.
(i) Power plants using garbage as fuel come under the category of non-
conventional energy sources. Tamil Nadu electricity Board, has a particular
policy for power purchases from non-conventional producers, The present
purchased price for power from the producers of energy is Rs.2.25 kWh. 5%
increase each year from the year 1995-96.This rate will applicable to the
energy producing plants using garbage as fuel.
(ii) The developers of energy producing plants using garbage will be provided
with lands on lease basis near the garbage dumping centers of the
Corporation of Chennai at Perungudi, Vellacherry and kodungaiyur. The lease
rent would be fixed as Rs.10,000/- per acre per year and the lease period
would be 20 years.
(iii) TIDCO would call for bids for putting up of such plants in the city of Chennai
indicating the land availability and the purchase price of Tamil Nadu
Electricity Board as indicated in the paragraph (i) and (ii) above from the
promotion of such energy producing plants to quote the rate that they could
offer for garbage. TIDCO would also prequalify bidders if found necessary.
The bid proposals should be examined by the Managing Director, TIDCO and
sent to the Government. The government will issue orders on the Managing
Director TIDCO. This order issue with the concurrence of the Finance
Department vides its U.O.No.130/FS/1/97, dated 11.1.1997
(By the order of the governor)
K.A Nambhiar
CHIEF SECRETARY TO GOVERNMENT
To
The Director General of Municipal Corporation,
Chennai – 600003
The Commissioner, Corporation of Chennai, Chennai 600003 through mayor
The Managing Director, TIDCO, Chennai.
The Chairman, Tamil Nadu Electricity Board, Chennai – 2
The Accountant General, Chennai 600075
Copy to:
The Secretary to Government, Finance Department, Chennai-5
The Secretary to Government, Energy Department, Chennai-5
The Secretary to Government, Industries Department, Chennai-5
The Secretary to Government, Revenue Department, Chennai-5
M/s Satish Association, Chennai 600040
3.7 POLICIES AND GUIDELINES OF MNES

MNES has promoted the national program for the recovery of energy from
industrial and urban Wastes. Since this program seeks to promote setting up
of waste-to-energy plants, various financial incentives and other eligibility
criteria have been proposed by the MNES to encourage the participation in
waste-to-energy projects. These are listed below:
1) Financial assistance is provided by way of interest subsidy for commercial
projects.
2) Financial assistance is provided on the capital cost for demonstration
projects that are innovative in terms of generation of power from municipal/
industrial wastes.
3) Financial assistance is provided for power generation in STPs.
4) Financial incentives are given to municipal corporations for supplying
garbage free of cost at the project site and for providing land.
5) Incentives are given to the state nodal agencies for promotion, co-ordination
and monitoring of such projects.
6) Financial assistance is given for carrying out studies on waste to energy
projects, covering full costs of such studies.
7) Assistance is given in terms of training courses, workshops and seminars and
awareness generation.
3.8 POWER PURCHASE AGREEMENT

The Power Purchase Agreement (PPA) has to be signed between the project
proponent and the state electricity board for the purchase of electricity that
is generated through waste-to-energy plants. The PPA defines the rate at
which the electricity will be purchased and other terms and conditions
mutually agreeable to the State Electricity Board and the project proponent.
A sample format of power purchase agreement for MSW to energy projects is
included as Appendix VI and can be used as a guide line for specific
requirement of an local WTE project. Based on this PPA, the project
proponent can take further steps for setting up the WTE plant. In case of any
disputes on PPA or the tariffs for the purchase of electricity, the project
proponent or SEB can file an appeal before SERC, which is a quasi-judicial
statutory authority appointed to resolve such issues. If the orders passed by
SERC are not acceptable to either SEBs or project proponents, they can be
appealed against in the High courts/ Supreme Court for final orders. The
policies introduced by various state governments for purchase of electricity
generated from MSW projects are given below.
3.9 CONCLUSION -
From the above data it can be concluded that there is huge potential for
municipal solid waste management projects throughout India. Projects are
on hand is social necessity as these projects are reducing the environment
issues of waste management and on the other hand manufacturing power
which is also the need of the hour.
In view of this, the project under consider the viable from marketing point of
view also.
Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat
Private /co-
Participation Private Private Private Private Private Private Private Private
operative
2% within
Rates for 2% for sister
5KM &
6% of 2% of 2% of 2% of 2% of 2% of
2% of energy 12.5 %
concerns,15% energy energy energy energy energy energy
Wheeling beyond
for others
5Km
Allowed
Allowed 2% Allowed Allowed Allowed Allowed
Allowed for 12 Allowed for Not at 25
Banking for 12 for 12 for 12 for 12
months 12 months allowed for 8-12
Charge months months months months
months
Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat
At Rs. 2.25 per At Rs 2.25 per Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/ Rs 2.25/
unit; Escalated unit Escalated unit unit unit unit unit unit
Rs 2.25
Buy back
escalated escalated /unit escalated escalated escalated escalated
at 55 (94-95) at 5% for
5% 5% 5% 5% 5% 5%
(1997-98 (w.e.f 1-4-
5 years (95-96) 94-95) (94-95) (94-95) (94-95)
base) 2000)
Allowed to Allowed
Third party Not
Allowed Not Allowed link to Allowed Allowed Allowed less Allowed
allowed
Sale HT tariff than HTT
Subsidy As to
Other
Participation in @Rs 25 other
equity by SEB - Lakhs/MW - - - - -
Incentives for Cogen. for Cogen industry
only
CHAPTER-4
FINANCIAL VIABILITY
4.1 EVALUATION PARAMETERS FOR FINANCIAL VIABILITY

After technical feasibility, we will analyze the feasibility of the project. While
considering Financial feasibility, we have appraised the projected with
reference to following aspects –
a. Overview of the audited balance sheet as at 31/03/2014, 31/03/2013&

31/03/2012of SHEL, SHIIPL &KGEPL
b. Cost of scheme and Means of Finance
c. Financial projections including assumptions
d. DSCR
e. Sensitivity Analysis
f. Conclusion
g. Banking aspect of the proposal
h. Suggestions to the company.
4.2 OVERVIEW OF OVERALL FINANCIALS
4.2.1 Sunil Hitech Engineers Limited

Sunil Hi Tech Engineers Limited (SHEL) is a flagship company of the Group
which is incorporated in May 1998. The promoter of the Company is a first
generation entrepreneur and has been successfully running the business for
more than 28 years. SHEL is engaged in the fabrication, erection and
commissioning works of Power plants. SHEL is an ISO 9001:2008 &
18001:2007 OHSAS certified Company listed with BSE & NSE.
Key Figures
Year ending 31/03/14 31/03/13 31/03/12
TNW 315.83 285.38 253.71
Net Block 119.92 118.35 141.17
Sales 1432.24 1,096.02 855.59
PBDIT 141.87 131.58 121.38
PAT 24.98 27.93 23.97
Cash accruals 49.35 57.52 54.80
4.2.2 Sunil Hitech India Infra Pvt. Ltd.–

SHIIPL is incorporated in June 2012 as a wholly owned subsidiary company of SHEL. The
company is established to undertake infrastructure projects focusing on Roads, Urban
Infrastructure, Solid waste management etc. The company has started its commercial operation
in FY 2014.
Key Figures
Year ending 31/03/14 31/03/13 31/03/12
TNW 1.84 - -
Net Block 5.72 - -
Sales 36.95 - -
PBDIT 2.48 - -
PAT 0.84 - -
Cash accruals 0.85 - -
4.2.3 Overview of audited financials of KGEPL–

KGEPL is an newly formed SPV incorporated specially for the execution of project
related to Setting up Waste-to-Energy (WTE-180 TPD) Processing Plant for
power generation (1.80MWh) at Kolhapur, Maharashtra allotted by
Kolhapur Municipal Corporation.
Key Figures
Till date no commercial operation has started.
4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL)-
4.3.1 Project cost –
Sr. No. Particulars Total Cost in Lacs
1 Plant & Machinery 1666.68
2 Civil Costs 613.42
Overheads & Contingency Exp. 45.60
3
@ 2%
Pre-operative Expenses 45.60
4
@ 2%
Financing Costs 1.50% 34.20
5
6 Interest During Construction 77.18
7 Total Project Costs* 2,482.69
4.3.2 Project cost –
Particulars Amt. Rs. in Lacs %

Owners Contribution 868.94 35%
Debt Finance 1613.75 65%
Total 2482.69 100%
Observations:
a. The total project costs considered is excluding the power transmission costs.
b. KGEPL will contribute around 35% of the project costs, Rs. 868.94 Lacsas its
own contribution, while it will avail term loan of Rs. 1613.75Lacs, which is
65% of the total project costs.
c. Bank must ensure that sufficient amount of own contribution is brought in by
the promoter and is supported by Certificate from Chartered Accountant.
4.4 ASSUMPTIONS OF THE PROJECT –
1. The project implementation period is 08months. During this period the total
project from concept to commissioning shall be completed and project shall
start yielding revenue after completion of construction period.
2. The plant will run for 292 days in threeshifts.
KGEPL will have to pay land lease rental as per agreement with Kolhapur
Municipal Corporation (KMC)
3. Municipal solid waste (MSW) of around 180 TPD would be collected by KMC
by using their own mechanism and would be provided to KGEPL up to project
site.
4. The daily un-segregated MSW of 180 tons, will be utilized for generation of
power (1.8 MWh) .
5. Plant load factor considered by KGEPL is assumed at 80.00% throughout the
years. Since the plant load factor looks very optimistic, financing banker has to
take assurance from the technology provider that given the site condition and
waste characteristic, the plant on an average will be able to operate at 80.00%
capacity.
6. Power rate assumed at Rs. 5.88/- per unit with no escalation of throughout
the financial projection.
“Maharashtra State Electricity Board (MSEB) shall purchase power generated

from municipal solid waste/sewage/biomass/agro waste at the rate of
Rs.2.25 per unit. The financial year 1994-95 has been taken as the base year
for this rate which would escalate at the rate of 5% per annum”.
As per MSEB basis rate for 2015 is Rs.5.97/- per unit. And petition by All
MSW Waste to Energy project developer for escalation of rates. The
requested rates for different states are as follows,
Sr.No. Name of the state Ref. Petition No. Power purchase /
unit
01. Maharashtra - 6.42
02. Gujrat 1052/2010 6.80
03. Delhi 35/2012 6.44
04 Harayana -- 6.41-6.53
By considering MSEB power purchase rate and present petition rates, KGEPL
has assumedthe rate of Rs. 5.88/- per unit on conservative basis.
7. The realization price from the sale of Fly Bottom Ash is considered at Rs. 150
per ton.
8. Tipping Fees Income considered is Rs. 308 per ton with no escalation clause.
9. Operation and maintenance expenses have been considered at Rs. 165 Lacs
per annum with escalation of 3% every year..
10. Rate of Interest assumed for term loan is 13.50 %. Repayment period of
10.00 years in structured manner in ballooning method.
11. Construction year has been assumed for 8 monthsand moratorium period of
1 Year.
12. The income so generated from the project is 100% exempted u/s 80IA of the
Income Tax Act, 1961 for a span of 10 years
Observations on assumptions –
a. Working days –
Working of 292 days in a year for three shifts is reasonable considering the
nature of the project.
b. Installed capacity –
Installed capacity of the plant has been calculated and derived and assumed as
described in Technical viability chapter.
c. Raw Material consumption –
MSW collection and usage ratios assumed are as per technical specifications
and sounds reasonable.
d. Power consumption –
Power generation assumed is as per technical specifications and sounds
reasonable.
e. Revenue generation from sale of electricity generation –
As per MSEB basis rate for 2015 is Rs.5.88/- per unit and petition by all MSW
Waste to Energy project developer for escalation of rates. The requested
rates for different states are as follows,
Sr.No. Name of the Ref. Petition No. Power purchase

state / unit
01. Maharashtra - 6.42
02. Gujarat 1052/2010 6.80
03. Delhi 35/2012 6.44
04 Haryana -- 6.41-6.53
By considering MSEB power purchase rate and present petition rates, KGEPL
has assumed the rate of Rs. 5.88/- per unit on conservative basis.
f. Plant Load factor –

Plant loan factor considered by KGEPL is assumed at 80.00% throughout the
years. Since the plant load factor looks very optimistic, financing banker has to
take assurance from the technology provider that given the site condition and
waste characteristic, the plant on an average will be able to operate at 80.00%
capacity.
g. Operation and Maintenance Expenses considered seems realistic.
Observations on financials -
1. We have assessed the assumptions on theoretical calculations observed that
the turnover projected appears to be achievable. (only if the assumption of
80.00% of plant load, is achieved)
2. Same is the case of expenditure estimation as well.
3. The promoters are ready to infuse capital of Rs. Rs. 868.94Lacs. Bank will
have to ensure infusion of sufficient amount of capital to be brought in by
KGEPL as own contribution and should take on records certificate from
chartered accountant and return of allotment of shares on record.
4. As per standard acceptable guidelines of project appraisal, standard expected
DSCR is 1.33. In the projected financials, average DSCR calculated is 1.78which
is as per the standard norms. The management as well as financing banker will
have to closely monitor the implementation of the project.
4.5 Calculations of DSCR is as under –
DSCR 31/Mar/16 31/Mar/17 31/Mar/18 31/Mar/19 31/Mar/20 31/Mar/21 31/Mar/22 31/Mar/23 31/Mar/24 31/Mar/25
PAT + Dep +
Int 138.42 557.27 586.64 508.58 580.12 570.49 480.70 586.25 583.35 491.02
Interest 54.42 216.77 202.61 187.36 167.75 143.78 117.64 87.14 52.29 17.43
Loan
Repayment 64.55 96.82 129.10 161.37 193.65 193.65 258.20 258.20 258.20
Total
Obligation 54.46 281.32 299.43 316.46 329.12 337.43 311.29 345.34 310.48 275.63
2.54 1.98 1.96 1.61 1.76 1.69 1.54 1.70 1.88 1.78
Original DSCR
Average DSCR 1.78
Min DSCR 1.54
4.6 The Project IRR calculated is 23.24% which is above the WACC of 8.63%. The
Equity IRR is 34.06% which is considered to be reasonable.
Calculations of IRR is given as annexure in “Financials”
4.7 The financials based on above assumptions has been attached as an

annexure named “Financials”.
We have verified the financials which are drawn up as per above

assumptions on mathematical calculations and found the same correct.
4.8 Evaluation criteria:

Sr. No. Particulars Comments
Reasonable, achievable and
1. Overall financial effects
acceptable as described above.
2. Soundness, scientific quality The project of the company is unique
and technological merit one. It deals with conversion of
municipal solid waste to power and
compost. Company proposes to
implement Reverse Push
Reciprocating Grate technology. The
equipments will be source from
Articulated Vessels & Utility
Engineers (P) Ltd. (AV-UE).
3. Potential for wide application In power-starved countries like India,
and benefits expected to there is tremendous potential for
accruefrom products manufactured by KGEPL.
commercialization
4. Adequacy of the efforts taken KGEPL has taken / is taking adequate
efforts to establish the products.
5. Capability of the R & D Methodology / technology used by
institutions in the proposed company well accepted and tested as
action network. such.
6. Organizational and The Board of Directors of KGEPL is
commercial capability of the well balanced between technocrats,
enterprise finance expert and hard core technical
members.
7. Reasonableness of the Cost of project finalized is reasonable.
proposed cost and financing Total promoters contribution for the
pattern proposed project is Rs. 868.94Lacs as
its margin which is around 35% of the
project cost.
4.9 Conclusion –
The comprehensive scheme would address the long term profitability. It
would also help Company to address and solve the issue of MSW
management and would enable company to effectively address crisis in its
totality and bring liquidity as well to protect the interest of all stakeholder
including the lenders.
Therefore, after detailed financial appraisal, we are of the opinion that the
project of KGEPL is proper for implementation and after its due
implementation; KGEPL would be in a position to recover the position as
stipulated in financials. Thus, it being financially viable proposal may be
accepted by financing bankers as fair banking risk.
CHAPTER – 5
SWOT ANALYSIS
5.1 STRENGTHS
 Long existence of parent company in market.
 Generated maximum power generation for MSW.
 Self-sufficiency in technology and technical processes.
 Existence of plant near the vicinity of raw material and it is available free of
cost.
 Experienced and balanced management team.
 The land lease cost is negligible.
 No revenue sharing with corporation.
 The produce generated from the project is easily acceptable in market.
5.2 WEAKNESSES
 The project is unique one as to its applicability and implementation in India.
Mitigant –
The technology used by company is tested by technology to be modified to
incillary boiler. The said company is confident of successful implementation.
5.3 OPPORTUNITIES
 If such project is successfully implemented, it can be replicated all over India
basis in almost all corporations.
5.4 THREATS
 Product diversity may create problems in future.
 Net energy recovery may suffer in case of wastes with excessive moisture
content and inerts.
CHAPTER – 6
BANKING ASPECTS OF THE PROPOSAL
6.1 Banking Aspects of the Proposal –

Following banking aspects of the proposal need the attention of the financing
bank/s:
1. To sanction loan as per standards terms and conditions, after taking

mortgage of security.
2. To take comprehensive insurance of building, plant and machinery, stock.
3. To obtain declaration of non-withdrawal or non-payment of unsecured

loans, if any during the currency of the loan.
4. Bank will have to ensure infusion of sufficient amount of capital to be

brought in by KGEPL as own contribution and should take on records
certificate from chartered accountant and return of allotment of shares on
record.
5. During the implementation of the project, the financing banker should

ensure that all the statutory clearances and permissions have been
obtained by the client.
6. We have relied on the information provided by KGEPL for the total project
costs.
7. Lending banker may keep continuously monitoring of the project and debit
and credit summations.
8. Plant loan factor considered by KGEPL is 80.00% throughout the years
which is reasonable & achievable. The financing banker needs to take
assurance from the technology provider that given the site condition and
waste characteristic, the plant on an average will be able to operate at
80.00% capacity.
9. The proposed project of MSW has been awarded to RSSPL by KMC. Further
a Joint Venture agreement is signed between RSSPL, KGEPL (SPV) and
Sunilhitech Engineers Ltd. (SHEL) (Parent Company of SHIIPL), by the
virtue of shareholders agreement which RSSPL hold around 12% stake and
SHIIPL along with its subsidiary and/ or Affiliates hold 88% stakes in
KGEPL.
CHAPTER - 7
CONCLUSIONS & RECOMMENDATIONS
 Rochem Seperations Systems (India) Pvt. Ltd (RSSIPL) has been awarded a
letter of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for
development of MSW processing facility for treating the MSW collection from
the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)
basis.
 The proposed project is for setting up Waste-to-Energy (WTE-180 TPD)

Processing Plant for power generation (1.8MWh), at Kolhapur, Maharashtra.
 KGEPL is a special purpose vehicle (SPV) promoted by Sunilhitech Engineers

Ltd. (SHEL) and its subsidiary & Affiliates including Sunilhitech India Infra Pvt.
Ltd & Rochem Separations Systems (India)Pvt. Ltd (RSSIPL) with shareholding
of 88:12 respectively. A Joint Venture Agreement to this effect is already being
executed dt.20thFebruary 2014.
 The Concession Agreement was signed between KMC and KGEPL is signed on
7th February 2014. By the virtue of Concession Agreement, KGEPL is setting up
a processing plant with a capacity of 180 TPD for conversion of MSW into
useful product (Power) at Kasaba Bavda village, Tehsil Kolhapur, District,
Kolhapur, Maharashtra on “DBFOT” basis for a period of 30 years. The land
lease Agreement has been signed on June 03, 2014. KGEPL has also received
suitable extension for achieving financial closure from KMC. The completion &
commissioning of plant is expected by January 01, 2016 which is 08 months
from the Start of Construction.
 The Municipal Corporation that is KEM will provide 4 Hectare of land to
KGEPL as per RFP document.
 SHEL will be the main EPC contractor to implement the project on turnkey
basis as proposed by KGEPL.
 The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is
proposed to be funded in a Debt to Equity ratio of 65:35.Total Owners
Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.
1613.75Lacs for the project would be tied up with Banks/ Financial
Institutions.
 KGEPL will be having its own power generation arrangements and therefore
assured revenue generation.
 Provision of machinery, utilities, and misc. assets are adequate.
 The infrastructure in the form of building and sheds is adequate to support the
projected production.
 KGEPL will not face any problem in sourcing the technical and non-technical
manpower.
 KGEPL has to ensure that sufficient area is made available for dumping of
processed remnants.
 Based on the data provided and observations during the site visit, the project
is considered to be technically feasible.
 The assumptions are realistic on income side and conservative on expenditure
side. Profitability appears to be achievable and realistic.
 Considering the parameters of appraisal of project such as DSCR, IRR and

payback period the given financials shows viability of the project.
 After considering assumptions of the project, financials prepared on the basis

of the assumptions and analysis made of the financials, we are of the opinion
that the said proposal is financially viable.
Therefore, the proposal may be considered as technically feasible and

financially viable and may be considered as fair financial risk

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TECHNO-ECONOMIC VIABILITY REPORT

Kolhapur Green Energy Private Limited

Constitution Private Limited

602, Trade Centre, Bandra Kurla Complex,

Regn. No. / CIN No. U40300MH2013PTC249945

Date of SHIIPL: 12/06/2012

i. Mr. Sunil Ratnakar Gutte

iii. Mr. C. Venkataramana

Scope of Study Techno-Economic Viability for Green field

 The development of project is expected to start

 The Municipal Corporation (KMC) has already

 SHEL will be the main EPC contractor to implement

6 Interest During Construction 77.18

01. EBIDTA as on March 621.27

02. Profit Before Tax as on 319.86

03. Profit After Tax as on 255.86

04. DSCR Avg. 1.78

08. Project NPV 2,919.29

09. Equity IRR 34.06%

10. Equity NPV 1,627.56

Tipping Fees Rs.308/- per MT of MSW, with no

2. Land Lease Agreement has been signed between

3. Till date KGEPL have issued performance Bank

4. Project Development Fees of Rs. 40.00Lacs is

5. Concession Agreement between KMC & KGEPL is

6. As per the Concession Agreement &KMC waste

7. KGEPL will be having its own power generation

8. Provision of machinery, utilities, and misc. assets

9. The infrastructure in the form of building and

10. Company does not face any problem in sourcing

11. Based on the data provided and observations

12. The assumptions are realistic on income side and

13. On perusal and detail analysis of financials

Therefore, after detailed financial appraisal, we

1.1 COMPANY PROFILE OF KGEPL –

1.1.2 The Group’s extensive past experience in infrastructure has provided it an

Kolhapur Municipal Corporation (KMC) has allotted the letter of acceptance

1.1.3 KGEPL proposes to implement Reverse Push Reciprocating Grate Technology

1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL –

1.2.1 Mr. Sunil Ratnakar Gutte Managing Director)

1.2.2. Mr. C. Venkataramana

The other details of board of directors of KGEPL are as under:

Sr. No Name of the Director Address

Mr. Ashok Vice 41 Rich experience in Will look after

Mr. S. R. General 12 Rich experience in HR, Will look after

Mr. P.N.Rao AGM 50 Rich Experience in Will look after

Mr. Pradip AGM 35 Rich experience in Will look after

Mr. Rohit Senior 15 Rich experience in Will look after

The company is involved in waste water treatment solutions by providing Reverse

1.5 COMPANY PROFILE OF SHIIPL –

Some of the Directors of SHIIPL are:

Presently, major of waste in India is dumped on open grounds or in low-lying

KGEPL has decided to set up Processing Plant for Conversion of Municipal

According to the advertisement published by KEM in local newspapers dated

After appraisal of tender documents submitted by bidders, KMC had release

Since the project is to be execute on DBFOT basis, KGEPL proposing to approach

1.7 EPC CONTRACTOR

1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL–

2.1 KOLHAPUR MUNICIPAL CORPORATION –

Kolhapur is the sixth most industrialized city in Maharashtra. It is fast

In order to streamline MSW management as per MoEF and GOI MSW

Additional Commissioner Mr. Nitin Desai

Deputy Commissioner (1) Mr. Sanjay Herwade