Maize (Zea mays) is one of the important Kharif crops of Himachal Pradesh. The major area under maize is rain fed and there is no substitute for this crop during rainy season. The quality of maize grown in the state is very good. It is an important crop of the state both as staple food as well as for feed. The farmers are compelled to sell their produce to the traders at throw away prices due to lack of local demand and excess production. The trends in production, consumption and marketing of this crop have drawn the attention of the State Government for finding out the value addition locally. They planned to promote processing of this crop in to value added products. Some efforts were also made to set up a processing plant in the state but the same could not materialized. Keeping this in view, the Himachal Pradesh State Directorate of Agriculture, Shimla assigned NABARD Consultancy Service a study to assess the feasibility of maize processing in the State with the following objectives . (1) To assess the production and marketable surplus of maize . (2) To identify the suitable technology . (3) To assess the techno-economic feasibility and location for setting up processing unit. The broad terms of reference for the study were as under:
Terms of Reference
1. 2. To assess the district wise production and marketable surplus of maize in the State. To survey the existing resources / institutions / organisation and various linkages existing in various parts of the area. To identify / recommend possible products of maize based on the quality. To identify / recommend suitable technologies for processing of maize and suggest suitable locations for setting up such units, keeping in view the forward and backward linkages including marketing. To assess the financial implications and suggest means of finance and financing pattern. To assess techno - economic feasibility and financial viability of the project for securing financial assistance from different sources such as loans from banks and financial institutions and grant from Ministry of Food Processing Industries, GoI and other agencies. Identify the agencies and suggest strategies for implementation of the project.
The study was completed in two phases. The first phase of the study was conducted in Maharashtra to identify suitable technology for processing of maize to value added products. The technology followed by the existing units in the state were studied. Phase II of the study was taken up in Himachal Pradesh
to assess the marketable surplus of maize and also ascertain the feasibility of setting up of maize processing unit(s).
The primary data were collected from the existing units, traders of maize products, farmers, consultants, suppliers of plant and machinery, units consuming maize products as raw material and various officials of State Govt. Departments of Agriculture, Himachal Pradesh Krishi Vishvavidyalaya, Industries and Pollution Control Board and some professionals who have worked in this sector. The study was completed in two phases. Phase I- The study covered the existing maize processing units at Dhule (Maharashtra), Ahmedabad (Gujarat) and units consuming maize products at Baddi, Himachal Pradesh. Phase II- Covered field study in four major maize producing districts in Himachal Pradesh, namely Una, Hamirpur, Mandi and Kangra. The owners of the existing maize processing units in Gujarat and Maharashtra and farmers in Himachal Pradesh were interviewed individually and also group discussions were held with farmers wherever possible. In addition, discussions were held with the Indian Starch Manufacturing Association, Mumbai and Indian Maize Development Association, New Delhi to know the common issues connected with the maize processing industry. The secondary data were collected from various Departments of State Government in H P, like Director of Agriculture, Director Industries and State Pollution Control Board.
AN OVER VIEW OF INDIAN MAIZE (Zea mays)
Maize (Zea mays) is classified into dent, flint, waxy, sweet and pop corn categories. Dent corn (Zea mays var. indentata) also known as field corn, containing both hard and soft starch, becomes indented at maturity. Flint corn (Zea mays var. indurata) having hard, horny, rounded or short and flat kernels; with the soft and starchy endosperm is enclosed by hard outer layer. Both of these varieties are used for industrial purposes. Popcorn (Zea mays var. everta) has small pointed and rounded kernels with very hard endosperm which on exposure to dry heat popped or evereted by the expulsion of the contained moisture and forming a white starchy mass many times the size of the original kernel. Sweet corn (Zea saccharata or Zea rugosa) is distinguished by kernels containing a high percentage of sugar in the milk stage and therefore suitable for table use. Indian maize has white, red, purple, brown or multicoloured kernels and is characteristically dent corn. The dent corn is useful for starch processing by wet milling method. The area and production details of this cereal crop is given as under:
Production of Maize
The total area under maize cultivation in the world is 139 million hectares with a production of 598 million MT ( mMT ). USA is the world's largest producer and exporter of maize with an out put of 240
mMT from an area of 29 million hectares. Other major producers are China (125 mMT), European Union (39 mMT), Brazil (37 mMT), Mexico (19 mMT), Argentina (14 mMT) and India (11 mMT). Among all cereals, maize occupies the fifth largest in area, fourth largest in output and third largest in yield. India is the tenth largest producer with a production of 11.10 mMT from an area of 6.6 million ha. The average yield in India is 1.77 MT/ha which is very low as against 7 MT/ha in temperate areas of developed economies and 3.8 MT/ha of global average. Maize is cultivated in almost all states in the country. Bihar is the leading producer in India followed by Rajasthan, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Karnataka and Himachal Pradesh. The crop is grown both in Kharif and Rabi seasons in India with a share of 85 per cent and 15 per cent, respectively. Analysis of time series data for the last 10 years, reveal that there was not much variation in the area under maize, but the production had suddenly declined during 2002-03 to 4.79 lakh MT from 7.68 lakh MT due to severe draught. Further, the CAGR indicates that there was no growth in the area and production of maize in the State due to stabilised cropping pattern. There was marginal increase in area and production in Bilaspur district. Though not very significant, a negative CAGR had been observed in all other districts, indicating that no further expansion in area is possible in these districts. The major share of production comes from Mandi, Kangra, Chamba and Sirmaur districts. The average yield of maize in Himachal Pradesh is 2.0- 2.5 MT / ha. Sirmour district has the highest productivity of 2.3 MT / ha followed by Mandi with 2 MT / ha. The productivity level of other districts range between 1.5-2.0 MT / ha, indicating thereby the scope to improve the productivity by adopting improved agronomic practices.
Utilisation pattern of maize
The major share of maize produced in the developed countries is either utilised for production of ethanol or production of feed for livestock. Globally maize accounts for 15 per cent of the world's proteins and 19 per cent of the calories derived from food crops. Maize produced in India is utilised for human consumption (33%), starch production (9%), poultry feed (46.5%), brewery (0.5%) and animal feed (11%). There are no precise data available on the utilisation pattern in Himachal Pradesh. However, the discussions with farmers and policy makers indicate that only 20 per cent of maize is utilised for human and animal consumption in the state. The remaining 80 per cent is supplied to the processing factories especially poultry and animal feed plants located in other states.
Assessment of Market Surplus of Maize
The market surplus in respect of food grains in India as compared to other crops is quite low between 5-10 per cent. But the consumption of maize in Himachal Pradesh for food has declined over a period of time. The use of maize in daily diet has been replaced by wheat and rice. The shift in consumption pattern is attributed to the increase in purchasing power of the local people and prevalent public distribution system of Government. The district- wise market surplus of maize arrived at by discussions with farmers and Agriculture Department officials is given as under:
Marketing of Maize In andhra pradesh
The marketing of food grains in the state is not strictly regulated. There are no operating food grain markets in the state. As there are no notified markets, farmers sell the crop to the local traders. In districts like Una, Kangra and Hamirpur, traders from adjoining states collect maize from the farmers directly. These traders offer very low prices and also cheat farmers in weighment. The maize purchased from the farmers in Himachal Pradesh is supplied to animal and poultry feed units in adjoining states, like Punjab and Haryana. The starch units of Punjab and Uttar Pradesh also procure raw material from this state directly from the farmers and traders. Himachal Pradesh supplies nearly 4.0-5.0 lakh MT of maize to other states every year after meeting its own requirement of food and feed.
Problems in Maize Production
The maize crop in the state have some inherent problems, which limit its cultivation and production. The important factors being Rising income levels leading to a shift of consumer preference from coarse cereals (maize) to fine grains (wheat and rice). Increased monkey menace during the recent years compelling the farmers to switch over to some other crops like paddy, vegetables etc., especially in irrigated areas. Lack of systematic/ regulated marketing. Negligible processing facilities. Dependency on rain fed conditions. Least preference by farmers in view of lower returns. Unfavorable weather conditions like untimely rainfall and thunder storms causing lodging of the crop. Temperate climate of Himachal Pradesh does not favour its cultivation during Rabi Season. The above problems, though difficult to overcome, can be reduced considerably by combined efforts of farmers, policy makers and Government departments through a combination of developmental and policy measures. Spring season cultivation with irrigation could be tried. Newer single cross hybrids should be tried.
STATUS OF MAIZE PROCESSING
Maize is one of the staple foods of poor families. Traditionally, the grain is converted into flour in mills for making bread. Immature cobs are roasted and eaten all over the country. It is an important raw material for animal and poultry feed and corn flakes manufacturing units. But the quantity of maize utilised by these units is limited as the existing units are of small scale nature. They make only a few products having limited demand. Hence, an alternative large scale unit which can process a large quantity of maize to different value added products is required to be set up.
Methods of Maize Processing
Maize is usually processed by two distinct processes, namely wet milling and dry milling. Dry milling produces grits, corn flour and minimum amount of corn meal. The technology has been standardised by Central Food Technological Research Institute (CFTRI), Mysore. The technical know how is available with CFTRI on price. The service for turn key project is also available with the institute. Dry milling units have a crushing capacity of 10 MT/day with a project cost of Rs.20 lakh. Such units can be set up any where in the state depending upon the availability of raw material, power and suitable land.
Dry Milling The maize kernels are screened, tempered with hot water/steam to loosen the germ and bran. Then it is degerminated to remove the germ. The husk is separated by means of aspirators. The degermed maize is dried to a moisture content of 15-15.5 per cent followed by sifting. It then is subjected to milling to produce grits, meal and flour. The germs separated is dried and passed through an expeller to produce the corn oil. The different products that result from dry milling are as under :
S. No. 1 2 3 4 5 6
Product Grits Coarse meal Germ Fine meal Flour Hominy feed
Share (%) 40 20 14 10 5 10
CFTRI has developed a mini mill for dry milling of maize. The grits is the main product of dry milling process, which is used as porridge by boiling domestically. The processing units use grits for manufacture of products like ready-to-eat snacks (corn flakes), wall paper paste and manufacture of glucose by direct hydrolysis. The process flow of dry milling is as under: Cleaning => Conditioning => Degerminating => Drying & Cooling => Grading & Grinding => Sifting & Classifying => Purifying => Drying => Packaging
60-62 % 8-9 % 6-7 % 22-24 %
Gluten Germ Husk 3. The starch slurry is then passed through a 12 stage hydroclone washing system.3 -
Manufacture of Corn Flakes The corn flakes is one of the important value added products manufactured out of yellow and white maize. Starch slurry usually has a moisture content of 42 per cent. The byproducts of starch manufacture. It is then subjected to primary and secondary grinding. It is a product of dry milling.
The grain is unloaded from the trucks directly in receiving area or stored in silos. stones and any other foreign particles.Wet Milling
Maize is generally processed to manufacture corn starch by wet milling method the world over. whose brands of corn flakes are very popular in Indian market. wherein the germ and husk are separated. corn steep liquor. Gaziabad and Kellogs. The starch slurry thus obtained is diverted to various production lines for manufacture of liquid glucose and modified starches such as dextrose. where the material is screened for debris such as sand. A brief process flow of corn flakes is given as under: Receiving => Cleaning & Polishing => Milling => Bran => Cooking under pressure => flavouring => Agitation (lump breaking) => Drying => Sweating => Flaking => Roasting/ Frying => Grading => Packing The corn grains after cleaning and polishing are milled to remove the germ and bran. like corn oil. which is manufactured by flaking of the major grain after extraction of germ. The material is fed to the cleaning section by a feed conveyor. The average recovery of various products and co-products of maize during the wet milling are Starch . Now the mixture consists of gluten and starch. gluten etc. wherein the starch is washed and concentrated simultaneously. are the important value added products. The raw flakes are also used for manufacture of beer. The flaked grain is either roasted for manufacture of corn flakes. The dried gluten thus obtained has a moisture content of 12 per cent. The steep water produced in this process is then concentrated and fortified with vitamins.2 per cent for 70 hrs at 52oC. minerals to produce corn steep liquor. Germ is utilised
. The dry starch has a moisture content of 11-12 per cent. The clean material is then sent to steeping section. The cleaning section is housed in 3 floors. The wet starch is then dried by hot air by passing through a drier. The slurry containing gluten is passed through a rotary vacuum filter in which a portion of the moisture is removed followed by drying in a hot air drier. breakfast cereal or fried to manufacture corn flakes served as snack foods. The degermed maize is passed through a fibre washing section where the fibre (husk) is separated by pressure washing. Steeping softens the kernels and also removes some solubles. It is received in a tank where it is washed with hot water first and subsequently steeped in water containing sulfur-dioxide @ 0. There are only a few companies like Mohan Meakin.1. The gluten is mainly used for poultry feed. dextrose mono hydrate etc. Sulphur dioxide act as preservative. It is generally eaten as a breakfast cereal but the demand for this product is limited to hotels and big cities. The gluten is separated from starch by centrifugal separation.
This is very essential to have uniform pressing for the flakes. They are then packed in water resistant polythene packages or food grade waxed paper packages. The tempered material is next passed though a heavy duty flaking machine.2
Limiting Factors for Maize Processing in Himachal Pradesh
Non availability of regular supply of required quantity of water in some districts. The cooking is completed when the material turns out to a uniform translucent colour. Consumption of maize as a staple food by local population and limited preference for processed products. While rotating. Then properly roasted flakes are graded and transferred to the packing bins immediately because flakes are hygroscopic.50 lakh.
. As the demand for this product in the state is limited. A corn flakes unit of 300 MT per annum will require an investment of Rs. The plant and machinery is available in India. the units may have to market their products mainly outside the state. preferably on conveyers or tables. The roasted flakes are subjected to inspection. The bran is cooked under pressure in rotary steam cooker and mixed with flavouring material. which is known as sweating.for extraction of corn oil. Availability of maize in only one season. The dried material is kept in tempering tanks for few hours to permit the residual moisture to become equally distributed. the flakes are continuously carried forward until they are dropped into conveyer.
3. Slow growth of demand for starch in the state Poor rail connectivity High transportation cost both for raw materials and finished goods due to hilly terrain makes it less competitive. No organised marketing or bulk procurement and consequent lack of bulk purchase scope for the industry. The cooked material is carried to an agitator or lump breaker and finally dried in drier to moisture level of about 15 per cent to 20 per cent. The flakes are then immediately transferred to gas fired rotary ovens for roasting.
whereas in developing countries. 1 2 3 4 5 6
Name of the State
No. Karnataka and Chattisgarh.050 450 300 100 150 3. US with the largest starch industry contributes 51 per cent followed by EU (17%) and the rest by others. whereas in the rest of the world.4. The state-wise number of wet milling units and the installed capacity is given in the Table. Punjab.5 mMT in the year 2000.
The global production of starch from all sources was 48. Madhya Pradesh. The demand for starch syrups is higher than dry starches in developed countries. Due to the steady growing demand.350 1. EU.4 kg/annum. Maharashtra. During the same period 39. Maize is utilised mainly for ethanol production in the developed countries like US and EU.2
The wet milling industry in India is limited to certain pockets such as Gujarat. The largest starch consumers are US.6 and 4. whereas India's per capita demand is 0. China and India. having six units with a total crushing capacity of 1350 MT of maize per day. followed by Maharashtra with 5 units and capacity of 1050 MT and Madhya Pradesh with 3 units and capacity of
. Corn has been the major source of starch (83%) followed by potato (6%).400
Gujarat Maharashtra Madhya Pradesh Karnataka Punjab Chhatisgarh Total
The list of major starch producers in India is given in (Annexure II b). wheat (4%) and rice (1%). EU is the major exporter of both native and modified starches. below: Table. respectively by 2010.4 mMT of starch was derived from maize.3.3.4 kg/annum. Cassava (6%). Gujarat is the largest producer of starch. the total world output of dry starches and syrups were estimated to reach 71 mMT and 37 mMT. Wet Milling units in India
STATUS OF CORN STARCH INDUSTRY
There has been a positive trend during the past two decade in the wet milling industry. The world demand for starch products is growing at an annual rate of 4 per cent. of units 6 5 3 1 1 1 17
Installed capacity (MT of maize/day) 1.
4. The world per capita demand for starch is 8. No. it is either used as a staple human food or manufacture of starch and its derivatives. whereas potato and wheat contributed 2. the situation is reverse. There are about 17 wet milling units with a crushing capacity of about 3400 MT of maize/day. respectively. followed by US and Thailand.
The selection of technology is very important as regards to the viability of the unit is concerned. textiles. There are plants with as high crushing capacity as 400 MT/day. The other products include Gluten. (Fig.1.450 MT maize.3
Status of Maize
Himachal Pradesh has no starch producing unit. Fibre (husk) and Corn Steep Liquor. A unit in Buland Sahar.
STATUS OF MARKETING OF MAIZE PRODUCTS IN INDIA
The starch is the main product of a maize processing unit. hotels and restaurants. Gluten has great demand in animal feed
5. Uttar Pradesh has been reported to have been closed due to improper selection of technology. There are few animal and poultry feed units in Kangra and Una districts. However. A mini dry mill with CFTRI technology is proposed to be set up in the Industrial area of Mandi District in near future. pharmaceuticals. paper.
4. Germ. etc.)
The average processing capacity of the units in India is 200 MT of maize / day. which is consumed in various other industries like food. there is no plant in the country with crushing capacity of less than 100 MT/ day.
They also sell through trading agencies as well. Hence. etc. is used by animal feed manufacturers. this unit purchases about 20 MT of DMH per day from maize processing units of Gujarat and Punjab. hotels. Further.2. A down stream DMH manufacturing unit can be set up easily attached to a starch manufacturing unit. Most of the starch manufacturers of Gujarat. etc. there are a few textile manufacturing units located in the state which require low grade starch. mainly the husk. paper industries. Ion Exchange. The procurement price of such units goes up due to the addition of transportation cost of Rs. The consumption of starch in Himachal is very limited because of slow industrial development and its requirement for food and hotel industry is met from other states. Mumbai.industry because of its high protein content (70%). This demand is being met from Ahmedabad and Mumbai. Maharashtra. South East Asian countries. These traders restrict marketing of the products of one or a few companies and prefer to procure different maize products from a single supplier. Lucknow. Most of them have their marketing offices in metros and big cities for direct sale.
In India. Liquid Glucose (LG) also has good demand in India and a LG manufacturing unit can also be set up along with a starch manufacturing unit from maize. Hyderabad. Fibre. Chandigarh. Filtration. they will get exemption from excise duty and sales tax to the tune of about 18-20 per cent. Ahmedabad and Mumbai are the major trading centres for corn starch in India. textiles. it is advisable for a maize processor to have processing facilities for starch and its derivatives like liquid glucose. dextrose monohydrate. if the starch units are set up in the state. Similarly. Therefore. Punjab. Hence the maize processing unit if set up in the State will not face any difficulty in marketing the main
.0 to Rs. It has demand in wet form itself for animal feed. Bangladesh and South Africa. Nearly 25 pharmaceutical units have been set up at Baddi in Solan district and each of them consumes nearly 4-5 MT of starch per annum. which comes to nearly 200 MT of starch requirement per year. Delhi.. etc. Currently. and through traders as well. Further. Maize processors directly market their products to the consumers like pharmaceutical industries. India exports these products to Sri Lanka. different industries require different types of starch and the processor should be able to meet their demand to compete in the market. Germ is expressed to extract germ oil which is a low cholesterol containing edible oil. Its annual requirement of this product is 2000 MT. Ahmedabad and Kolkata are the major markets for processed maize products. Evaporation. Bangalore etc.5 per kg of starch. have their marketing offices in Mumbai. Dabur India has set up a manufacturing unit of Glucose from Dextrose Mono Hydrate (DMH). Starch and Gluten have good export potential as well. Corn Steep Liquor is one of the substrates for culture media for manufacturing of antibiotics and other microbial production systems. In addition. Crystallization and Drying. The DMH is obtained from maize starch through a series of process including Liquefaction.2. Incubation. Other important markets include Bhopal. Also.
6. States like Bihar and Punjab produce winter
. Corn oil can be marketed outside the state as there is good demand for it. but the unit may face difficulty in selling corn steep liquor as there is no unit in the state which produce antibiotics and microbial products. Hence. As the traders procure maize from the farmers.product.1 in the preceding chapters. The remaining portion is released to the market depending upon the demand and market trends till February to March. This can be overcome if the units procure maize in bulk during the Kharif and store in silos for the lean months. The harvesting is done in the month of SeptemberOctober. consumption of the maize by local population and market surplus as indicated in Table.1
The viability of a maize processing plant depends upon the availability and uninterrupted supply of raw material to the unit. The husk can be sold locally. Keeping in view the cropping pattern. The state produces mainly yellow dent corn which is most suitable for wet milling for manufacture of starch and other by-products . it should not be a problem for a unit of above capacity to procure the raw material during Kharif season. The possibility of obtaining it from adjoining states like Punjab and Haryana is also available. a unit with a crushing capacity of 100 MT/ day will require about 30000 MT of maize per year (assuming 300 days of operation of the plant). the farmers sell major portion of their produce immediately after harvesting. The plant will be able to procure major portion of its raw material requirement with in the radius of 200 km. the unit will be able to source the raw material from traders for another 2-3 months. In Himachal Pradesh maize is mainly a Kharif crop.
CRITICAL FACTORS IN SETTING UP A MAIZE PROCESSING PLANT
6. the starch. there will be difficulty in procuring local maize for about 3-4 months during June to September. On an average. Hence. the availability of raw material is one of the important consideration in deciding the location of maize processing unit. As mentioned earlier.
which help in viability of the unit. This may raise the cost of operation of the unit to some extent. For a wet milling unit of 100 MT capacity. In our model. coal as a source of energy for boilers is not permitted in Himachal Pradesh.maize. The entire plant can be fabricated by the fabricators at Ahmedabad and few other parts of the country. The site where wet milling units are set up should have a good source of water. There are a number of suppliers for setting up of the plant on turnkey basis. There should be enough land for disposal of treated waste water. if available at reasonable price.
6. Himachal Pradesh is reported to be surplus in power and there should not be any problem in respect of power supply. as it requires large area to set up plant and machinery and effluent treatment plant.1999. which require to be disposed off properly. However.6
The technology is indigenous except for starch-gluten separation and starch washing unit which is imported through companies like Alfa Laval. oil fired boilers need to be installed.3
The water requirement for the wet milling industry is relatively large with an average use of 4 cum per MT of crushing per day. A unit with crushing capacity of 100MT/day should have at least 10 acres of land. As per the Industrial Policy Guidelines and Incentive Rules. Hence. In case the water is to be sourced from ground. the water table should be high and the areas should fall in white category of unrestricted use. The details of the terms and conditions for allotment of land is presented in Annexure IX.
Land requirement of starch manufacturing unit is very high. the land is also allotted by State Government to the units on lease basis. we have assumed 10 acre of land for assessment of viability. below:
. The units manufacturing starch by wet milling in states like Maharashtra and Gujarat.
6. A view of a maize wet milling unit is given in Fig. The power tariff in the state is also very reasonable.4
The average power requirement is about 170-250 units per day per MT of maize crushing. Some of which are listed in Annexure III. use coal for production of steam.5
The steam requirement is 1 ton / MT of maize crushing. The milling unit requires uninterrupted power supply and hence a DG set is required as standby arrangement. The maize is generally packed in gunny bags in bulk. As the unit also generate high amount of sewage water. therefore about 4 lakh litre of water/ day is required. the unit may acquire upto 15 acre of land to meet future expansion requirements. The most common mode of transportation is by lorries.
6. However. preferably a perennial river.
6. The wet milling process is a complex process. The different steps involved in the wet milling are presented below.Good quality yellow dent corn without various impurities will increase the quality of the final product. The critical operations which have a direct bearing on the quality of the final product are Raw material selection and cleaning .1
The corn is transported to the unit in trucks in gunny bags and offloaded in receiving area or in silos. Steeping .
. Dhule. by which the corn is separated into three parts. which involves a series of operations.Germination of maize and the microbial growth are controlled by steeping. the germ (the source of most of the corn oil) and the endosperm (the source of gluten and starch). Hydroclone washing . Maharashtra Starch is usually manufactured from maize by a process known as wet milling.6.Courtesy: The Kisan Sahakari Starch Mfg. the outer hull or bran. Society Ltd. The receiving area should be designed in such a manner that there is enough space for smooth movement of expected number of vehicles.The simultaneous washing and concentration of starch to the desired moisture and solid level increases the quality and marketability of the finished product. The grain is fed to the belt conveyor which takes the maize grains to cleaning section.
6. The grain is passed over perforated metals sheets. dust.6. metal parts. The RCC tanks should be designed in such a manner that it withstand the gravitational force.4 Grinding
The grain is fed into large steep tanks with hot water at 52 0C and steeped for 70 hr. During the soaking process. The steeping conditions the grain for later steps by softening of the maize kernels and loosen the bonds between germ. However. husk and endosperm. as well as the weight of the material. air blowers. RCC steep tanks are used by the existing units in India.6. 6. Generally. other foreign matter etc.6. 6.2 per cent concentration in hot water is added in the steeping tanks to prevent germination and bacteria. stones. steep tanks can also be fabricated by stainless steel but it increase the capital cost. nutrients are absorbed into the water and this water is later evaporated to concentrate the nutrients to get corn steep liquor or condensed corn fermented extractives. Steeping mixture containing sulfur dioxide (SO2) @ 0.2
The grain contain various impurities like cobs. These unwanted materials are removed in cleaning section. electromagnets to remove the impurities.
8 Primary separation
. The husk is mainly carbohydrate which also contains 8 per cent protein.7 Thickening The slurry of starch and protein is passed through a centrifugal concentrator to get the concentrated slurry. The germ is passed to germ drier which is finally sent to oil extraction unit. The husk is sent to either drying section or used as animal feed in wet form.6 Fibre Washing Section The slurry of husk.6. 6. gluten and starch are separated from germ. 6. The starch manufacturers generally prefer to sell germ rather than own oil extraction unit. In first stage. The husk is separated from the soluble starch and gluten slurry by a counter current flow system. The second stage grinding. 6. 6. The grinders are made of stainless steel with adjustable RPM with or with out pneumatic settings. It is a 3 stage process where the slurry containing soluble husk. This machine is also called as milk stream thickener. known as fine grinding.5 Germ Separation ( Degermination )
The pasty mix obtained after fine grinding is pumped to water filled settling troughs. The lighter density rubbery germ float on the top and is skimmed off.6. The fibre washing is a 6 stage process which is carried out by DSM box. known as germ separators or degerminators.The grinding process is completed in 2 stages. starch and gluten is ground for better recovery of starch.6.6. There are a number of manufacturers of grinding machines in India. The germ contains 45 per cent oil and the rest is crude fibre and moisture. the steeped maize grains are ground coarsely to loosen the husk and germ. help in detaching the germ from the grain.
In addition to starch and the various other products.
6. ancillary units need to be attached with starch manufacturing units. and edible corn oil.3 ) which concentrate the starch slurry to 42 per cent solid level.6. it produces four major co-products for the feed industry namely the steep water. Besides.6. 6. The wet milling has developed into an industry that seeks optimum use and maximum value from each constituent of the maize kernel. husk (hulls or bran). The starch is raw material for various ancillary industries like dextrose monohydrate. germ and gluten.6.7
Effluent Treatment Plant
. the industry has become an important source of well-defined specialised ingredients used in feed formulation industry. The main product of wet-milling of maize is starch.12 Drying The concentrated starch slurry is then dried by hot air application (175 C) to 11-12 per cent moisture content level. 6. saccharin etc. These co-products represent about 25-30 per cent of the processed maize.10 Rotary vacuum filter The thickened gluten slurry is further concentrated to get gluten cake with 40 per cent solids through a rotary vacuum filter. Alfa Laval is the main company supplying this system in India for starch units 6.The thickened slurry is passed through a high speed centrifuge to separate the heavier starch from the lighter protein (Gluten).6. The gluten contains 65 per cent protein and is a good source of protein for the animals and is used in animal feed preparation. For manufacture of further derivatives of starch. 6.11 Hydroclone system
The starch slurry received from the primary separation is passed through a multi stage hydroclone system ( Fig. The cake is further dried by hot air and / or sun to bring down the final moisture content to 12 per cent. dextrins.9 Gluten thickening The protein slurry is passed through a centrifuge to get concentrated slurry of gluten.
including backward panchayats in the industrially developing areas referred to above falls in the category of ³industrially backward areas´. Dharampur & Solan in the district Solan. It has about 196 medium and large scale units with a total investment of about Rs. A Broad gauge line connecting Nangal-Talwara passing through Una district is under construction. The reasons for the same is its proximity to industrially forward States like Punjab and Haryana and also nearness to important markets like Chandigarh. railways network is very limited.2. There is only 200 km of narrow gauge rail network between Shimla and Kalka and Joginder Nagar to Pathankot.
INFRASTRUCTURE FACILITIES AND INDUSTRIAL DEVELOPMENT IN H. fruit and vegetable based units dominate the list.2378 crore and 30. except some development on the periphery of the State.´ The rest of the State.1
Industrial Development in the State
The entire State is industrially backward.2
Roads The road network is fairly good in the state with 23.
7. New Delhi etc. The development blocks of Paonta Sahib and Nahan in the district Sirmour and Nalagarh. The district-wise data on the number of units in medium and large scale sector are given in Annexure .2.1
Railways Himachal Pradesh being comprised of mainly hilly areas. excluding backward panchayats as notified by the Government of HP from time to time. clean environment and cool weather congenial for many industries.
7. would fall in the category of ³industrially developing areas. This offers vast potential and incentives for new entrants to set up various industries in the State. 710 crore.544 km of roads connecting all the district
.176 small scale units with an investment of about Rs. Tribal areas of the State. by and large. the State has.
7. chemical and chemical products.2
The infrastructure facilities available in the state are given below in a nutshell:
7. It should be set up as per the norms of State Pollution Control Board. It can be seen from the data that the district Solan is a fairly developed district in the state with respect of number of units.
7. Steel and steel products. namely ³Industrially developing areas´ and ³Industrially backward areas´. Among the food products. food products and electronics are some of the major industries of the state.IV.P. Processing of food grains especially maize is negligible. In addition. rather nil. as notified from time to time have been treated as tax free industrial zones. The State has been classified basically into two categories. It has been made mandatory to set up a ETP in all starch manufacturing units.Effluent treatment plant is an essential component of a starch industry. Sirmaur and Una are another two districts where there is some industrial growth quite obviously due to the same reasons specified above. The industrial growth in the state has been mainly under small scale sector.
All indutries are provided required quantity of electricity by State Electricity Board at reasonable rates. GoI¶s initiative to increase the area of cultivation and production of maize during the X five year plan period and its inclusion under the technology mission give impetus to maize production in the State. It supplies electricity to other states as well.0-4.0 lakh MT and 4.2. There are 3 smaller airports in the state at Shimla. Three national highways (No.5 Power Himachal Pradesh has number of hydel power units and is surplus in power.3 Telecommunication Whole of State has been provided with electronic exchanges and OFC network of nearly about 6000 Km. The anticipated production of maize during the year 2004-05 is estimated to be in the range of 9-10 mMT.
8. Maize is becoming one of the cash crops for farmers.0-7.21 &22) pass across the state. 7. Strong raw material base with total production of 6. as a major part of it is usually sold for market. Further.5 lakh MT of market surplus. there is no substitute for it particularly in rain fed condition and so the farmers will continue to grow maize. Various domestic air lines operate regular flights from Delhi.20.
8. The State has the latest state of the art telecom network and excellent connectivity. 7.2. Kullu and Dharmasala.4 Air Links Himachal Pradesh is approachable by air from New Delhi/ Chandigarh. 7. Directorate of maize has set a target to raise the output of maize to 18 mMT by the end of the tenth plan period mainly through increase in yield to 23-24 q / ha.1 Strengths
Corn production in the country has been growing steadily over the past five years.2. Starch manufacturing from maize generates about 1 MT of by-products for every 2 MT of starch produced and these by-products are worth more per MT than maize itself making the starch manufacture an economic venture. A special package of incentives is available for the processing units set up in Himachal Pradesh.
. Agro processing is one of the thrust areas for the Government of Himachal Pradesh.headquarters and subdivisions as well as blocks.
The demand is likely to increase to 186 lakh MT by 2011-2012 Great export demand for corn gluten as a poultry feed in South East Asian countries. Demand for starch is high from varied users like food. Since only Kharif crop is cultivated . Maize has to be procured from individual farmers or through middle men/traders which may hamper the regular availability or may cause price fluctuations.
8. No organised market/ single place for bulk procurement. paper. The demand for corn starch is expected to increase in future. Stiff competition from other producers within the country. the local raw material will not be available in other seasons. Corn starch is a substrate for manufacture of alcohol. Corn starch is identified as one of the ingredients for manufacture of biodegradable plastic. pharmaceuticals. water etc. lesser will be the cost of production.3
Backward linkage with farmers ( contract farming type arrangement ) is possible as maize has become one of the cash crops in the state.
8. packaging etc. Higher the productivity. in the form of land . shall not face any difficulty in marketing its products.4
Threats Maize is produced in HP only in Kharif season and mainly grown under rain fed conditions. The maize starch is a preferred product compared to its substitutes like potato starch and tapioca starch. textiles. hence. Competition for maize procurement by the poultry feed industry would limit the raw material availability.
8.It will be the first maize processing plant in Himachal Pradesh. Substantial subsidies from the Govt. The productivity of maize is high which can still be raised. which has been identified as an environment friendly fuel. subsidised power.2
Seasonal availability of maize in Himachal Pradesh. To run the plant during summer and rainy season maize grain has be procured from other states or buffer stocks to be maintained by the processing units.
This is the only location in Himachal Pradesh where broad gauge railway connection is available at Una.1
Baddi in Solan district Baddi is one of the most developed growth centres for industrial development in Himachal Pradesh. large scale units may be required to be set up to manufacture value added products. the units can procure raw materials from the adjacent states like Punjab. there are some limiting factors for wet milling. This centre is also well connected to all maize growing districts and also to the potential markets like Chandigarh. as discussed in the preceding chapters.2. The units set up at Baddi can procure raw material from all of the maize growing districts of the state.The strengths and opportunities of maize processing in Himachal Pradesh outweigh weaknesses and threat. Takarala in Una District Due to close proximity to Punjab and Haryana. the Una district is in an advantageous location. which can be transferred easily to H. Takarla in Amb Block has been identified as one of the suitable locations for setting up of maize processing units. Keeping in view the limiting factors. Haryana. the most suitable method to utilise the large surplus production of maize. etc. Madhya Pradesh. New Delhi etc. It is the most approachable location from Chandigarh.1. It is easily approachable from all the maize growing districts of Himachal and also from major cities of Punjab and Haryana. Karnataka. The technology of maize processing is readily available in India. The land is available but high cost may be a limiting factor. especially in States like Gujarat. But. There will not be any problem of sewage water disposal.1
The maize can be processed in to variety of products like grits.P. in view of the high market surplus of maize grain in the state.
9. There is ready market for starch in Baddi itself and being close to Chandigarh and other important cities there should not be any problem in marketing of the products. The infrastructure is fairly well developed at this location. During Rabi season. some ideal locations for setting up of a wet milling unit in Himachal Pradesh are identified as under:
9. Maharashtra. Ground water is sufficiently available which can be exploited easily for the unit. which can be exploited for processing unit. The technology for such units is available locally. There will not be any problem in acquiring the required area of land.
FEASIBILITY OF MAIZE PROCESSING IN HIMACHAL PRADESH
9.1. germ and flour by dry milling and other products especially corn flakes at small scale level. However.
9. Sufficient ground water is available. Punjab and Uttar Pradesh. Such units can be set up any where in the state where maize is a major Kharif crop.
. as the entire maize sold in the state passes through Una. The unit can procure raw material from all maize growing districts of Himachal Pradesh during Kharif season.
9. Various technoeconomic parameters for the model maize processing unit are assumed keeping in view the existing situation and market conditions. Hamirpur and Una districts. as the competition from Punjab traders will be stiff there. The place is situated in the border area of Mandi. Dist. Kangra. Chamba etc.2
The economics of a minimum viable unit are given in Annexure V (a) to V (g).5. It is located on NH21 (Chandigarh .9. The techno-economic parameters assumed are given in Annexure V (a).1.per quintal in consideration of the situation prevailing in H. Both. the MSP for procurement of maize for this year is Rs 525 / quintal. we have assumed an average price of Rs. ground and surface waters are available in plenty. Some of the maize sales occurring in Una district may not come to this place. Hamirpur. The cultivation in the district is only under rain fed conditions. Kangra Kangra is one of the major maize growing districts of Himachal Pradesh.2. Further. This is a plain maize growing area. Dist Mandi Balh valley is another ideal location.1
Installed capacity A plant of 100 MT of wet milling maize crushing capacity per day is considered as a minimum viable unit. A unit of this capacity will produce the following products.P.1. A unit is considered viable if its IRR works out to greater than 15 per cent at 15 per cent discounting factor. Some area of maize cultivation is irrigated. but sufficient quantity of water is available. The district is connected with Punjab by narrow gauge railway line and by national highway.
Mataur.1. The district is also adjacent to other major growing districts like Chamba.500/. There will not be any problem for sewage disposal.4
Balh Valley. However the site selection in Bhambla may have to be made carefully as the requisite land area and water may not be available at one place. Mandi and Hamirpur. The place is well connected to procure raw material from Mandi. the unit is considered as bankable if its DSCR is greater than 1. It has been identified as a growth centre for industrial development by the Government of Himachal Pradesh. The raw material can be procured locally during Kharif season while from other districts/states could be procured during lean season. There may be difficulty in getting a contiguous plot of land. Mataur has been identified as an ideal location for setting up maize processing units. field data collected and also the variations in MSP announced year to year. Even though.
Installed capacity MTPD TPA
. The raw material can be procured from Chamba and adjoining areas of Punjab.
9. Sufficient land is available but the high cost is a limiting factor.Manali) between Sunder Nagar and Mandi.3
Bhambla in Mandi District Bhambla is a centrally located place for all the districts producing maize.
3.2. No. 14.69 crore and Rs.00 769. respectively.2. The financial indicators are as under
Financial indicator NPW IRR
Rs. there will be high inventories. The farmers will be required to be paid immediately.500 4. 912.2.000
The plant will function 3 shift per day and 8 hour per shift.74 crore.3
Working Capital Requirement The working capital requirement of the unit will be very high and is estimated at Annexure V(d).4.C.32 crore is given in Annexure V (b-d) and summarised as under:
S. during first. Fixed assets Preoperative expenses Margin money for W. The working capital requirement of the unit is estimated at Rs.65 34. Rs. 70% and 90%. the creditors of one week are assumed. 2. Keeping.64
34. Starch is marketed through traders and it takes one month to realise the sale proceeds.64 crore. As the raw material is seasonal in nature.500 27.25 27.000 18. Keeping in view. 9. second and third year onwards can be achieved easily.000 3.Maize (raw material) Finished products Starch Germ Gluten Husk Total
100 60 10 5 15
30. Financial Viability The cash flow statement of the unit is given in Annexure V(e) and the financial indicators at Annexure V (f).000 1.63 1432. 1 2 3 4 5 6
Particulars Land and land development Building and civil work Plant and machinery Misc. this in view a debtors of 30 day period is assumed. during the first.48 30. Total
Amount (Rs lakh) 320.
Annexure V (c) Annexure V (c) Annexure V (b)
Requirements Should be +ve 15%
. second and third years. the nature of activity the capacity utilisation of 50%. hence.2 Project Cost The project cost for setting up of a 100 MT wet milling of maize per day has been assessed at Rs.00 250. 4.
The project will be viable even at 2 shift per day of operation but it will not be bankable.6 Break Even Analysis The break even analysis is given in Annexure VI. 9.1 1. hence a wet milling unit of 100 TPD of maize crushing capacity in Himachal Pradesh will be a viable unit as well as bankable.BCR DSCR
1.5 Sensitivity and Risk Analysis Keeping all variables constant. 9.21 76 15. A wet milling unit of 100 MTPD maize crushing capacity will break even at 40 per cent of capacity utilisation during first year of operation.21 2 16.7 Repayment period The repayment period of a maize wet milling unit is given in Annexure VII.8.26 1 -2.2. The installed capacity of a wet milling unit of 76 MT corn/day is viable.8 Risk Analysis
9.2. the critical factors like number of shifts per day and installed capacity were subjected to sensitivity analysis.33
40 57 110 40 61 122
It can be observed from the above sensitivity analysis that the wet milling unit should run round the year at 3 shifts per day basis. 9.55
1. The results are given as under:
BEP. % (at 90% capacity)
Shifts per day 3 34.63
Should be > 1. minimum 100 MTPD of maize crushing capacity unit is considered as viable unit.96 0.0 Should be > 1. hence.99 0.35 1.10 50 -0. but the plant and machinery are designed for 50 MTPD and 100 MTPD only. If unit operate at 1 shift per day only.2.2.40 Installed capacity (MTPD) 100 34.63 0.63 0. 9.2.5
All the financial indicators meet the requirement.1 Subjective Risk Analysis
. The bank loan can be repaid with in a period of 8 years including 1 year grace period. it will be unviable.
It was one of the staple foods for the local people but its consumption has declined over a period of time. consortium arrangement of financing will be an alternative. NABARD may also extend its co-finance jointly with other banks. NABARD provides refinance assistance to the eligible banks for extending loans to such units. Marketing of starch and other by products
9. POTENTIAL ASSESSMENT FOR MAIZE PROCESSING
Maize is one of the important Kharif crops of Himachal grown over an area of 3.2 Objective Risk Analysis We have assumed a very conservative capacity utilisation of 50%. The sensitivity analysis in absolute terms has been carried out and the results are found to be satisfactory. Since the project cost of wet milling process is quite high. The bank loan @75 per cent of project cost can be extended by the bank. The probability of negative outcome in respect of IRR is 2%.0 lakh ha with annual production of 6.2. Increased income levels and the PDS support available for rice and wheat by Government of India have led to the reduction of consumption of maize by local people
. term lending institutions like IDBI. etc.0 lakh MT per annum. The project has been subjected to objective risk analysis as per the risk variables table as per Annexure VIII (a). which indicate that the risk of project becoming unviable is quite low.8.3 Financing Arrangement The project can be financed by institutions like Commercial Banks. 70% and 90% during first 3 years. The margin money as per the Reserve Bank of India/ NABARD guidelines will be required to be brought in by the beneficiaries. Various incentives and subsidies are available for the industry. It can be seen from the risk analysis that all the parameters i. The economics have been worked out with out considering the subsidies and hence the viability will improve further when such incentives are tapped.
10. At present. ICICI Bank. At present. NPV and DSCR are not influenced much. The unit requires high quantum of working capital and hence the bank may be required to sanction separate working capital limit to the unit.0 lakh MT and market surplus of 4. IRR. 9. the margin money requirement for such projects is 25 per cent of project cost. The subsidy/ incentives from Central/ State Government available to the unit are mostly routed through the financing banks which can be adjusted against the last installment of repayment as back-ended subsidy. It can be concluded from the above that the project is not sensitive to identified risk variables. which are described in Chapter 12. Simulations have been carried out over 200 iterations and the results are enumerated in the risk analysis table as per the Annexure VIII (b & c).e. the processing of maize to value added products is negligible.y
Raw material procurement risk during off season y y Risk of natural calamity like drought etc. BCR.
units of capacity 30.000 1E+1N=2
2008-09 4 35 140. Keeping these factors in view.
SOCIAL AND ECONOMIC IMPACT OF THE PROJECT
24.32 10. N = New In view of the above potential.P immediately as market development would take time.00
24. Himachal Pradesh State Pollution Control Board (HPPCB) does not
. there is a huge potential.32 10.and thereby leaving a huge market surplus. 42.
11. This potential can be tapped locally for processing in to value added products in the state itself.32
2006-07 4 15 60. the following processing potential is suggested as feasible for the state to plan. the investment requirement for the next 4 year is given as under:
Investment requirement (Rs crore) Wet milling @Rs.00 42. This surplus is tapped at cheaper rates by the neighbouring states.000 2E+1N=3
20 E + 40 N = 60
60 E + 20 N = 80
80 E + 20 N = 100
E = Existing.32
2008-09 Total 14.96 50.00
2007-08 14.000 MT/ annum Other units . 50 crore.500 MT/annum
2005-06 4 10 40. dry milling units for manufacture of grits and other products can be set up in all maize growing areas which will require an investment of Rs.14. Small scale units for manufacture of corn flakes.
Particulars Market surplus (lakh MT) Processing (%) Raw material (MT) Wet milling . as stated earlier.32 crore/unit Other units @Rs.50 lakh/unit Total
24.32 10. 3 wet milling units can come up easily with an investment of Rs.000 1
2007-08 4 25 100. it may not be possible to process the entire surplus maize to value added products with in H. the units in Maharashtra and Gujarat use coal fired boilers for steam generation. Though. poultry and animal feed units.96 crore for which suitable locations are suggested in the report.00 20.00
In a period of 4 years.1 Environmental Issues
In order to bring down the cost of production.
the companies will require to install oil fired boilers for the units. Government of India for the purpose.
11.permit the installation of coal based boilers. The unit will create employment opportunities for around 70 skilled and unskilled workers directly. an Effluent Treatment Plant (ETP) is made mandatory for maize processing industry by the Government of India.. The indirect employment opportunities around the unit is estimated as under:
S. The SO2 is released during the process of initial steeping process and evaporation. The units importing starch from other states will get their raw material with in state at a lower rates. It will reduce the dependence on other states for import of starch and other maize products. Hence.3 Employment opportunities
The wet milling unit will create both direct and indirect employment opportunities. The treated water can be utilised for agricultural purposes within the permitted BOD level of 30 PPM. to mitigate the hazardous pollutants. The farmers of the State will be benefited as there will be a ready market for their main Kharif season crop.
11. The starch manufacture by wet milling process uses sulphur dioxide (SO2) as preservative during the steeping process. The emission levels of these pollutants by maize processing industry are usually quite low. sulphur dioxide (SO2) and particulate matter. 1
Man days/Day 30
Procurement and transport of raw material
. The three main pollutants which are released into the atmosphere during the wet milling process are volatile organic compounds.2 Economic Impact
Maize wet milling unit will have positive economic impact. However. Financial support in the form of capital subsidy is also available from Ministry of Environment and Forests. The chain go on increasing down the line in procurement and marketing. as it will utilise its own raw material to produce value added product. No. The manpower requirement of the unit is given in Annexure V (g).
Joint / Assisted / Private Sector / NGOs / Cooperatives / PSUs are eligible for grant in the form of reimbursement upto 10 per cent of the total purchases made by processors in a given year. limited to Rs. The ministry has been operating several plan schemes for the development of food processing industry since the inception of 8th Five Year Plan. GOI.1. The schemes envisage higher quantum of financial assistance to difficult areas including Himachal Pradesh. 12. Under this scheme. through the processor. Schemes of Ministry of Food Processing Industries. The processing companies would be required to supply high quality seeds / fertilisers / pesticides and technology to contracted farmers.1.1. ensure remunerative price to farmers by creating direct linkage between farmer and processor. Grant assistance @25 per cent of the capital equipments and technical civil work upto Rs. 10 lakh per year for a maximum period of five years. 12. The group of contracted farmers should not be less than 25 in number. Maize processing is one of the eligible activities for support from Ministry of Food Processing Industries.2 Incentives to Industrial Units in Himachal Pradesh
. along with necessary extension work at reasonable charge.2 3 4
Handling and transport of finished goods Marketing of finished goods Business opportunities around the unit Total
30 200 20 280
It can be observed from the above Table that the indirect employment generation is four times of the direct employment opportunities.1 Grant Assistance for Capital Investment The Ministry of Food Processing Industries is the nodal agency for development of processed food sector in the country.50 lakh in general areas and 33. provide high quality seeds / fertilisers /pesticides and planting materials to farmers along with technical knowhow etc.
12. by ensuring regular supply of raw materials through contract farming.33 per cent upto Rs.Scheme for strengthening of backward linkages in food processing industries The objective of the scheme is to increase capacity utilisation of fruits & vegetables processing as well as grain and coarse grain.75 lakh in difficult areas including Himachal Pradesh is available from the MFPI to units under private. public and joint sectors.2.
INCENTIVES FOR MAIZE PROCESSING UNITS
The Government may also grant project specific special package to any new medium and large scale industrial unit proposed to be set up in the State which has potential for substantial employment generation. the rate of subsidy shall be reduced accordingly. Land/shed shall be allotted on out of turn basis at a nominal price /rent to be determined by the Government from time to time.
. 25. Manual. Such new industrial unit(s) will be entitled to an investment subsidy @ 25 per cent on cost of plant and machinery installed subject to a ceiling of Rs. In case of existing unit(s).a. distilleries. Such new industrial unit(s) shall be exempted from the payment of State excise duty for a period of 7 years. Central Sales Tax at a concessional rate of 1 per cent shall be leviable on the goods manufactured by new & existing industrial units upto 31-03-2009. provided that the unit pays a minimum of 6 per cent interest after availing the interest subsidy. vegetable and maize processing industries consuming atleast 60 per cent of their total consumption from local produce per annum and located in industrially backward areas (except produce of breweries. non-fruit/ vegetable wineries and bottling plant both for country liquor and Indian Made foreign liquor). ancillarisation etc.1999. Government of Himachal Pradesh ( Annexure IX ). The GST on the raw material. The sanction/disbursement shall be governed by erstwhile C. these concessions. This subsidy shall not be admissible on defaulted/rescheduled installment(s) and the period of default shall be counted for determining the period of eligibility. both direct and indirect.set/ hydel plant. GST exemption for a period of 10 years will be admissible to new industrial units. royalties etc. Department of industries. shall be exempted from payment of any State taxes and duties (excluding levies in the shape of cess. whichever is later. Period of these concessions will be to new industrial unit(s) from the date of commencement of commercial production or from the date of notification issued in this regard.00 lakh p. as eligible. Such new industrial unit(s) shall be eligible for a subsidy of 10 per cent in the rate of interest on term loan for a period of 6 years subject to a ceiling of Rs.Various incentives are being given to the industrial units in H. As regards other incentives. on case to case basis..S. whichever is later. unit(s) in these areas shall be treated at par with the unit(s) in industrially backward areas. are eligible for the following incentives. processing and packaging material except timber. No electricity duty shall be charged on the power generated from D. fees. non-fruit/vegetable based wineries and bottling plants (both for Country Liquor and Indian Made Foreign Liquor) in the tribal areas of the State. In case the rate of interest after a subsidy of 10 per cent falls below 6 per cent. distilleries.) for a period of 10 years from the date of commencement of commercial production or the date of notification by the concerned department(s). would be available from the appointed day or the date of notification. in the public interest. The package of incentives available to the fruit.10. as notified from time to time.G. whichever is later. Any new industrial unit(s) except breweries.00 lakh.P as per the Industrial Policy Guidelines and incentive Rules . While considering allotment. such unit(s) shall get precedence even over units in priority sector.I. Such new industrial unit(s) shall be exempted from the payment of electricity duty for a period of 10 years. shale and limestone used by the existing and new industrial unit(s) for captive manufacturing within the State shall be leviable at a concessional rate of 1 per cent upto 31-03-2009.
6. to Rs. (Deptt. The State Government may consider providing land at a concessional lease rental at an uniform rate in all locations in Himachal Pradesh for maize processing units. The report may be circulated to the entrepreneurs and they may be invited to explore the possibility of setting up maize processing unit in Himachal Pradesh (Deptt. HP)
Identification of suitable Rabi season varieties or for extended Kharif season varieties is needed to extend the cropping season. officials from Government Departments including Director of Industries. for Himachal Pradesh. HP/ HPMB)
4. of Industries. The lease rental charged by State Government ranged between Rs.
SUGGESTED ACTION PLAN
The following action plan is identified by the study to promote maize processing in Himachal Pradesh. at different locations identified for setting up of the maize processing unit. Research Institutes and entrepreneurs in a workshop to draw a time bound action plan for future. (Deptt. textile etc.13.
The maize processing units require large land area and the high cost of land may act as a limiting factor.
The findings of the study may be discussed among bankers. (Deptt. as land cost is prohibitive in setting up of such units. of Agriculture)
.1000 per sq. HP)
2.400 per sq. the state government may consider to amend the State Agriculture Produce Marketing Act to allow contract farming as legal practice as suggested by Government of India. either on lease basis or freehold.
In order to promote contract farming to ensure supply of maize to the proposed unit. of Agriculture/ Industries.
State Government may consider providing land to the entrepreneurs at concessional rate. a comprehensive development plan to promote such units along with maize processing unit need to be drawn by State Government. HP)
3. of Industries. of Agriculture/ NABARD/ SLBC.
1. of Agriculture. like pharmaceutical. mtr.mtr. (Deptt. (HPKV Palampur / Deptt.
The study report may be given wide publicity by the State Government through Industries Department.
As maize starch is used by other industrial units.
611 25.305 1.900 A 32.486 17.499 1.394 PR 32.Premi) Manager
( Somainder Singh ) Manager
( V.662 38.446
.604 30. Production ('000 MT) and Productivity (q/Ha)
DISCLAIMER The views expressed in this report are advisory in nature.
No.342 PR 18.489 22.191 55.730 26.352 56.238 14.817 PR 21.283 A 28.107 29.
( B.169 26.543 19. of Industries.758 58.176 72.212 P 52.929 74.840 46.202 26.721 82.147 1.875 28.630 -3. Nabcons and NABARD assume no financial liability to any one using the report for any purpose.P.739 0.532 15. Area ('000 ha).211 26.865 18.290 31.834 32.569 27.106 61.571 26.269 -3.328 30.334 22.583 27.670 20.R.768 2. 1 Bilaspur
Particulars 1993-94 1994.151 -0.602 P 94. Esakkimuthu) Assistant Manager
District-wise area production and productivity of maize in H.992 68.708 P 60.379 26.2000-01 2001-02 2002-03 CAGR Average 95 (%) A 24.665 -0.857 24.873 63.081 47.
642 -4.041 0.300 305.635 101.024 -0.513 37.682 57.122 10.Area.487 135.643 -0.878 22.155 -0.665 1.260 -0.425 51.062 -0.Production.389 48.144
A :.476 16.319 28.004
57.397 52.149 19.014 24.134 0.449 27.257 19.209 24.542 15.726 21.121 0.281 23.681 -0.877 31.593 151.465 9.002 40.524 37.863 21.691 43.018 98.620 17.620 20.124 -0.248 -0.372 -1.924 16.079 -3.052 683.P.804 106.233 18.758 48.055 29.040 0.001 16.042 26.841 17.217 68.
Annexure II List of major starch manufacturing units in India
.390 0.242 113.868 16.219 52.220 314.425 26.521 38.062 29.506 20.372 26.947 24.100 20.605 25.441 25.4
12 Lauhal Spiti State Total
A P PR A P PR A P PR A P PR A P PR A P PR A P PR A P PR A P PR A P PR
58.213 31.642 22.406 23.496 20.383 0.779 0.210 -0.305 47.632 22.715 26.180 645.107 0.987 0.685 0.026 69.923 48.153 -0.317 18.547 28.001 21.059 23.634 -1.262 27.613 57.344 25.440 21.036 0.728 14.624 25.895 298.862 129.258 21.087 22.438 24.272 301.536 128.795 21.023 -1.847 1.040 -0.049 -12.568 16.270 2.737 39.152 16.224 13.510 0.933 69.340 16.298 15.141 15.738 16.042 0.408 0.084 23.087 21.338 -3.393 0.753 16. H.545 -3.398 23.778 -0.348 0.858 58.657 23.453 31.421 49.008 48.594 -0.926 0.387 0.739 54.038 0.813 92.829 23.599 56.017 32.628 768.630 64.039 15.470 1.555 297.134 32. P:.495 -5.392 53.546 24.669 53.937
57.408 20.862 0.475 16.687 54.198 479.604 0. Shimla.236 11. PR:.927 21.256 54.591 17.504 16.550 669.285 25.Productivity Source: Director Agriculture.736 20.086 0.194 23.122 27.135 19.
Address S. Ahmedabad. Shailesh Park.saahil. Maharashtra 425 498. Mandsaur. Gujarat Heemat Nagar. Ahmedabad . Dadanagar.in http://www.net. Hostel Polytechnic. Gujarat .com www.sales@maizeproducts. Maharashtra Sirola.saahil@ad1. Name of the unit No .firstname.lastname@example.org m 792873232 + 91-76.458 001
E-mail & Website
Capacity (MT corn/day ) 400
+91-792871581 +91-766304572 +91-79220322 ext. Maharashtra .382430 2 Saahil organics NR. 244236
bapusheb@hotmail. Dhule.md@kisan-starch. Gujarat Vapi. Ahmedabad Gujarat .D.co m 2200731
+91-256. (Bladi-Nyahalod Fata). B/H L. Ahmedabad. Gujarat-380015 3 Anil Anil Road.com
244235. 9 sahayadri starch 10 Yaswant starch 11 Tirupathi starch 12 Rajaram Brothers Viramgaon. Ltd.vsnl.252
+ 91.com/ 6307108 +91-79.424005 (MS) Jay Palace. Maharashtra Indore. Kathwada Maize Poducts Products. Madhya Pradesh .co m
200 200 200 (7422) (7422) 221135/36/43 223294 / 440 150
.universalstarch. Soc. India Sangli. Ahmedabad. Existing Units 1 Maize P.kisan-starch.10009. Deopur. Hawai Mahal.380 025 4 Riddhi Siddhi starch 5 Kashyap sweetners 6 Ambuja proteins Ltd 7 The Kisan Sahakari Starch Mfg. Dodaicha. Engg. Gujarat Mumbai-Agra Road.com 271232 www.O. Ahmedabad. Madhya Pradesh Mhow Neemuch Road. Post Box Products No. 8 Universal starch Chemical Allied Ltd. Maharana Pratap Sinh Marg.
18 Santosh starch products Ltd 19 Jaychandr a Agro Industries Pvt. Near Balgaon. Madhya Pradesh Gogak.
.New cloth Market. Biotech Kadhur.Dadar(west). 503213. Punjab-144001
Komal Niwas. Phagwara.senapati bapat 24362210/ marg. Ahmedabad-380007
(7744) 225207. 224825. 501013.Ltd
71. Rajnandgaon Chhatisgarh . Maharashtra
Sarai road. Tamil Nadu
3600 Diversificatio n from tapioca starch to maize starch New unit
2 Basant Sangli. Kailash Nagar. 223561 91-792141933
91-792160874 91-222430596 9
Mhatre pen building. Maharashtra Dada Patil Makka Prakariya Karkhana Ltd.II floor.13 Kashyap sweetners 14 Riddhi Siddhi starch 15 Devji Agro Pvt Ltd 16 Sukhjeet starch and chemical Ltd 17 Rajaram Maize Products
Ratlam. Karnataka Kolapur.B 91-22wing.Mumb ai-400028 24363418
Sub-total Proposed units 1 DSQ Origin Agro Starch.
6460506.411 036. GIDC. Batha.nrdcindia. Mundhwa.com
Consultant/ Suppliers (Name & Address)
Fax/e-mail 26231877.III Major consultants/ Supplier of Technology of Wet Milling of maize in India
Manu. Zamroodhpur Community Centre. Ahmedabad 382415 M/s Geeli Machinery Works.
26419904. New Delhi . Morlidhar Society. 72-76. 3/A. 6478010
National Research Development Corporation (A Government of India Entreprise). 26480767.20-22. No. 143 Phase I.com M/s Halani & Associate. 26432627
Type of service offered Turn key projects
info@nrdcindia. Starch machinery
22201602 22865409 (R)
info@geelidewatering. Kailash Colony Extension. Opp.Annexure . Engineers/ Engi Fab Industries
Manu.110 048 www. Anil Starch Mills. Ahmedabad 380 025 M/s Shirke Structurals Pvt.M. Odhav. Anil Road. Pune . Ltd. Behind New Post Office. Ahmedabad . 26417821. & Exporters of Starch machineries and spares Construction of Maize silo and Tower cabin
M/s J. 4-A. Mona Estate.382 445
Rambaug Col Paud Road.gaikwad@alfalaval. Phadk Raod Dombili (E). Thane Maharashtra . Pune411 038 Water Treatment and Effluent Treatment (I) Pvt.net. Gujarat 8 Decon System 10. Mumbai-Pune Road.vsnl.com
nitin.com/spectoms plants & equipments. Makarpura Station Road.411 012
Suppliers of Feed milling Internet://www. B-115.6
Alfa Laval (India) Ltd.alfalaval. Maneja. 27121641 Suppliers of bulk material handlng E Mail .vsnl. Sonal Palace. Dilip Gaikwad Mr.spectoms@ad1. Sargam. 1st Floor. etc.vigorsoft. Ltd.in systems and equipments
Manufacturer of water treatment and effluent treatment plant
District-wise group-wise details of units in Medium & Large Scale Sector
. Ltd.com 27127721 & 27127711 (Pune) Homepage: www. Dapoli Pune . Vadodara 390013.421 201
Turnkey project and suppliers of centrifugal separators and hydroclone washing systems for starch units
02652642641/ 2642643 2644592/ 2332633 Tel 27120792 27121641
E-Mail:. Nitin Gaikwad SPECTRUM Engineering Pvt. Material handing & Storage Systems.
Mandi/ Kullu -1 -1
1. Plastic Products Total
17 3 21 20
2 1 1 6
1 1 1 1
27 6 23 28
1 7 142
1 9 196
Annexure . Engineering 6. Paper & Paper Products 10. Steel & Steel Products 9. Chemical & Chemical Products 5. Electronics 8.Total No. Beverages 3. Textile/Spinning 4. Cement 11. Food Products 2. Non Metallic Mineral Products 7. Leather & Leather Products 12.V (a) Unit for manufacture of maize starch by wet milling method
. Ceramic 13.
4 i ii iii iv
Recovery Starch Gluten (protein) Germ Husk 60.00
Yr1 50% (Rs/Kg)
Yr3 90% (Rs/MT)
Cost of maize Procurement expenses
8 i ii
(Rs.00% 10.50% Rs./ MT
Consumables (Sulphur. packing material. 1 2 3
Particulars Project cost Cost of land per acre (Rs.00 12.No. of working days Working hours/day Installed capacity (MT corn /annum) 100 300 24
Assumptions 1432. lakh) Installed capacity (Raw material) TPD No. chemicals etc.008 30.00% 15./MT) 10000 12000
.) Price realisation Starch Gluten (protein)
350.00% 5.Techno-economic Parameters
50% 8 1 Years
Repayment period Grace period
Interest on term loan Interest on W.08 3.50% 0.
Depreciation on Civil Works Plant and Machinery Misc.00
800.00 4.C. lakh/ year)
0. fixed assets
5% 10% 5%
Insurance of fixed assets
Selling expenses .80 46.iii iv 9 i ii iii iv 10 i ii iii
Germ Husk Power Consumption Power load (KVA) Power factor Lakh units /year Cost of power (Rs/unit) Steam consumption Steam requirement (MT/Hr) Cost per MT Cost of Steam (Rs.Commission Selling expenses .
. Amount Remarks
Land (acre) Land development
300.00 250.V (b) Unit for manufacture of maize starch by wet milling method
Project Outlay ( Rs.18
Prelim & Pre-operative expenses
Plant and machinery
769. fixed Assets
34. in lakh ) Sr. of 100 MT capacity each. Silo storage.00 Steeping tanks 4 Nos.00 20. unit and office buildings etc. Particulars Rate/qty.65
Misc.00 Lump sum amount
Sub Total 2 Building and Civil Structures
Total project cost
Margin Money Bank loan
Margin money for working capital
30. 700 RPM.5 80
.S. Coarse Grinder (36 inches dia. 50250 MT/day) Degerminator/Separator (3 stage) Fine Grinder (36 inches dia.No. 50-250 MT/day) DSM box for fibre washing (6 stage) Centrifugal Separators (separation of protein and starch) Hydro clone starch washing (12 stage)
Annexure V ( c )
Unit for manufacture of maize starch by wet milling method
Details of Plant and Machinery
Rs. Particulars Number Rate Total value
2. 700 RPM.00 1074. in lakh S.
V ( d )
Unit for manufacture of maize starch by wet milling method
Assessment of Working Capital Requirement
( Rs. in lakh )
. set (500 KVA) Miscelleneous equipments LS
1 2 1 1 1 1 1 1
80 10 15 50 20 40 200 25
80 20 15 50 20 40 200 25 75
Erection & Commissioning
769.G.7 7 8 9 10 11 12 13 14
Gluten thickner Hydrolic press for gluten Gluten drier Starch pulveriser & Drier Germ drier Boiler oil fired (8 tonne steam/Hr) Effluent treatment plant D.65
V ( e )
Unit for manufacture of maize starch by wet milling method
Income and Expenditure Statement
( Rs.80 173.50
Working capital gap
Creditors (current liabilities)
17.36212 118.09 97.80 505.71
Annexure .17 173. in lakh )
Sr.44 135.00 12.00 23.06 135.47
277.77 31. Particulars
1 2 3 4
Raw material stock Work in process Finished goods Debtors Total current assets
30 4 30 30
.44 393.No.1558 92.00 18.95 97.50
Margin money for W.
00 2700.0 0 0 0 0 0 13500 18900 24300 24300 24300 24300 24300 24300 24300 24300
Total 4 INCOME Starch Gluten (protein) Germ Husk 3 Income per annum
900 90 210 90
1260 126 294 126
1620 162 378 162
1620 162 378 162
1620 162 378 162
1620 162 378 162
1620 162 378 162
1620 162 378 162
1620 162 378 162
1620 162 378 162
1290.0 2322.00 2322.0 2322.00 2700. 16200.00 2100.000 2322.I
1 Installed capacity (MT) Maize (raw material) Starch Gluten (protein) Germ Husk Total 2 Capacity utilisation (%) 3 Products (MT) Maize (raw material) Starch 15000 21000 27000 27000 27000 27000 27000 27000 27000 27000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
18000 1500 3000 4500 27000 50%
18000 1500 3000 4500 27000 70%
18000 1500 3000 4500 27000 90%
18000 1500 3000 4500 27000 90%
18000 1500 3000 4500 27000 90%
18000 18000 1500 3000 4500 1500 3000 4500
18000 1500 3000 4500 27000 90%
18000 18000 1500 3000 4500 1500 3000 4500
27000 27000 90% 90%
27000 27000 90% 90%
9000.0 1350.00 4050.0 2322.0 2700. 00 0 00 00 00 00 750.00 16200.00 1350.00 3150.000 2322.0 2700.0 4050. 16200.0 1350. 16200.0 0 0 0 0 0 2250.0 0 00 0 00 00 00 00
.0 2700.0 2322.0 4050.0 1350.0 0 0 0 0 0 1500.0 4050.00 4050.000 2322.00 1050. 16200.0 16200.0 4050.00 2700.00 1350.00 12600.00 1350.00 4050.00 16200.00 4050.00 16200.00 1806.0 1350.00 2700.0 2700.00 1350.
94.15 145.28 10.00 32.28 10.00
94. plant and machinery and stocks 8 Repair and maintenance (building and P&M) 9 Administrative Expenditure Salary Printing & Stationery T.28
67.75 1350 6.00
6.00 32.28 10.00 10.28 10.00
10.90 72.00 11.28
67.25 1350 6.00
2.15 145.75 1350 6.00
80.00 32.71 12.00
10.60 129.25 12.00
10.00 32.00 32.15 129.28
10 Selling & Distribution expenses
67.75 1350 6.00
6.60 12.00 100.64 112.15 145.00
15.75 1350 6.75 1050 5.50
94.80 12.50 145.00
52.28 10.75 1350 6.60 129.00
15.00 19.28 10.50
73.00 12.) Sub-total 32.60 129.39 12.57
67.43 12.15 129.28
67.00 32.75 1350 6.00
6.Lakh) II EXPENDITURE 1 Raw material 2 Procurement expenses 3 Consumables 4 Power 5 Steam cost 6 Wages 7 Insurance of building.00
94. office maintnence.00 17.00
15.60 129.28 10.28 10.(Rs.15 129.60 12.75 1350 6.00
4. & Conveyance Misc Expenses (Staff welfare.00 750 3. books/ magzines etc.60 12.00 21.20 12.00 13.
129 418.9 1 2 7 0 5
C Gross Surplus 215.93 1845.03
11.210 337.300 472.22
11.55 8 1 4 9 9
9.44 298.68 278.61
E Interest on Term 128.799 Total interest
92.22 1850.856 123.622 3 3
F Profit after Depreciation and Interest
46.881 128.500 11.67 160.81 2 6 4 1
H Profit after Depreciation.61 23.469 Loan 1 Interest on W.302 107.61 23.691 292.792 49.563 317.10 477.799 49.717
10.994 222.3 1848.799 68.61
156.0 1851.9 1844.61
11.43 119.783 471.88 110.32 1463.67 473.93 475.281
10.01 419.646 55.61 23.C.03 18.666 167.70 1849.58 264.672
0.40 208.40 125.113 469. 27.823
7.37 0 2 0 3 0
8.439 125.45 12.674 357.04 ( PBDIT ) 8 8 0 4 7
11.799 49. Interest and Tax
11.39 113.97 378.03 86.61
49.98 470.Commission on sales Frieght Sub-total
6.372 250.069 476.60 293.61 23.785 38.875 11.22
8.799 49.61 23.799 49.0 1846.22
B Total Expenditure
49.61 23.047 236.90
9.210 49.675 342.799 49.61
11.268 141.509 163.61 23.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
250.000 0.31 263.751 1.70 351.841 0 4 2 1.899 245.627 193.000 2.000 1.000 1.95 380.000 0.630 350.V (f)
Unit for manufacture of maize starch by wet milling method
Calculation of Depreciation ( WDV )
( Rs.000 0.000 1.620 369.28 360. No.445 183.629 1.673 1.630 350.25 171.773 174.I
Surplus available for Repayment
215.487 227.881 282.23 6 6 4 1 6
J Debt Service Coverage Ratio Coverage Available Debt 215.526 1.000 237.000
Annexure .076 208.000 1.544 374.000
Value DSCR K Average DSCR
0. in Lakh ) Sr.000 1.998 365.23 6 6 4 1 6 128.675 293.49 355.500 225.95 380.62 214.49 355.584 165.041 1.000 1.998 365.70 351.620 369.28 360.000 1.66 190.562 5
.628 1.344 203.000
0.675 293.442 1.544 374.070 0.855 157.895 1.
342 56.121 331.417 561.185
1.516 21.281 10.339
436.445 183.644 26.099 27.965 69.562 149.584 165.247
237.812 33.902 36.178 268.261 24.773 174.382
1.701 22.717 10.532
8.685 623.024 368.099 27.016
0.948 23.630 29.34 203.625 214.650 692.818
Depreciated 692.500 11.685 623.500 225.967 454.V(g)
18.390 20.360 cost 5
1.516 21.269 62.390 20.684 4
Plant & Machinery
29.627 193.321 19.948 23.471 409.41 561.107 50.729
8.121 331.644 26.384
Annexure .855 157.321 s fixed assets
1.07 504.875 11.497 45.309 298.181
9.447 40.261 24.967 454.293
29.075 504.309 298.024 368.701 22.
No. Type of manpower
Number of persons
Salary (Rs.Unit for manufacture of maize starch by wet milling method
Assessment of manpower requirement
S./month)/ wages (Rs./ day
A (i) (ii) (iii) (iv) (v)
Managerial Managing Director Administrative officer Plant Manager Procurement manager Marketing manager 1 1 3 1 1 30000 25000 17000 15000 15000 360000 300000 612000 180000 180000
B (i) (ii) (iii) (iv) (v) (vi)
Permanent/ skilled staff Clerk/typist Attendent Plant operator/ electrician Section incharges Store keeper Boiler operator 2 2 4 10 3 4 2 3 7500 4500 5000 4500 3000 4500 4000 3000 180000 108000 240000 540000 108000 216000 96000 108000
(vii) Drivers (viii) Security guards
Sub-total C Unskilled casual labour 40 100
60 129.60 129.90 145.0 2322.0 2322.75 6.60 129.0 1350.0 1350. In Lakh )
Break Even Analysis
Unit for manufacture of maize starch by wet milling method ( Rs.0 0 0 0 0 0 0 0 0 0
Variable Cost Raw material 750.15 100.60 129.75 6.75 6.0 1350.75 6.80 129.15 145.0 2322.75
Procurement expenses Consumables Power Steam cost
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Installed Capacity ( tonnes )
27000 27000 27000 27000 27000 27000 27000 27000 27000 27000
Capacity Utilised ( tonnes )
13500 18900 24300 24300 24300 24300 24300 24300 24300 24300
1290.Annexure .0 2322.75 6.0 2322.15 145.60 129.15 145.60 129.0 1350.75 5.00
94.0 1350.64 72.50
94.75 6.0 1350.0 2322.0 1350.15 145.15 145.00 1050.50
112.60 129.25 6.00 1806.50 80.15 145.60
94.75 6.0 0 0 0 0 0 0 0 0 0 3.0 2322. No.0 2322.
64 799.07 0.00
67.07 0.00 23.16 881.22
Selling & Distribution 12.28
12.39 10.92 193.28
156.92 134.07 0.00 18.62
68.6 1039.07 0.10
49.8 6669.79 1372.02
Break Even Point ( MT )
67.0 964.27 141.90 ) 6 11 34 2 4 2 1 0 6 4
2.2 4 40 61 06 1 8 9 4 4 0
Break Even Point ( % )
BEP ( Sales Revenue 1041.00 Repair and maintenance (building and P&M) Administrative Expenditure Total interest 67.47 153.10
0.0 5786.00 23.07 0.00 23.07 0.67 160.06
0.93 232.2 1761.28
6.90 expenses 5Total Variable Cost
983.25 plant and machinery and stocks 0.82 13.28
6.00 23.47 133.00
12.07 0.20 14.2 1761.10
0.2 1761.2 1761.18 250.03 86.00 23.28
67.86 123.00 23.22
49.33 556.67 167.10
6.07 0.9 7516.20 258.00 23.10
0. 23.2 1 2 2 2 2 2 2 2 2
Fixed Cost Insurance of building.28 637.23 19.2 1761.80
Total Fixed Cost
12.71 16.00 23.39 17.7 5827.00
Sales Revenue per MT Variable Cost per MT Contribution per Unit
67.5 8368.07 0.
252 171.07% 72.881 110.147 613.076 208.620 369.006 920.429 0.956 380.286 360. In Lakh ) Rate of Interest Year Bank Loan O/S at the s Surplus available 12.664 190.841
End of the year 1074.058 73.VII
Unit for manufacture of maize starch by wet milling method
( Rs.00% Payment Repayme of nt Total Outgo Bank Loan O/S at the Surplus available Equal Instalme nts
Beginning of the year 1 2 3 4 5 6 7 8 1074.429 153.48% 62.469 92.789 153.429 128.998 365.429 153.55% 76.288 306.429
for Repayment 215.718 460.Margin of Safety
19.429 153.646 55.412
of Principal 0.19%
Annexure .235 36.487 227.25% 58.645 129.859 153.881 128.429
.429 153.133 142.881 282.494 355.000 153.03% 65.310 263.922 156.622 170.429 153.577 767.147 613.795 11.429 153.675 293.544 374.27% 40.56% 69.859 153.630
Interest 128.718 460.899 245.577 767.02% 76.242 183.006 920.006 1074.823 18.288 306.000
after Repayment 86.44% 55.646 116.
247 0.058 0.0% 0.055 0.399 11.943 2.18% 0.280 0.066 0.38% 1.540 2.0% 0.425 28.0%
Annexure VIII (c) Wet Milling of Maize
Risk Variable Report
.Annexure VIII (b)
RISK ANALYSIS RESULTS
Wet milling of maize
Average DSCR IRR Expected value Standard deviation Minimum Maximum Coefficient of variation Probability of negative outcome
1.52% 1.419 0.565 64.90% 0.
Risk Variable No.5 4 NORMAL MAX 4.5
Range: Standard deviation:
0. 2 Cost of power (Rs/unit) Probability distribution:
MIN MEAN 3. 1 Cost of maize Probability distribution: MIN Range: 4 MEAN 5 NORMAL MAX 6 0. 3 Cost of steam per MT Probability distribution:
MIN MEAN 650 NORMAL MAX 800
Standard deviation: Degree of skewness:
Degree of skewness:
Risk Variable No.333 0%
Standard deviation: Degree of skewness:
Risk Variable No.
IX Details of Incentives available to Industrial Units in H. employment condition shall not be applicable.667 0%
Annexure .P (Extract from Industrial Policy Guidelines and Incentive Rules -1999. The incentives are provided under the discretionary powers of the State Government. SSSBE. However. 2 Allotment of Land Land/shed in industrial areas/estates developed/ acquired and transferred to the Department of Industries shall be allotted by the Department of Industries on lease hold/rental basis for the establishment of industrial unit(s) at subsidised premium/rent in industrially backward areas and reasonable premium/ rent in industrially developing areas. Small and Ancillary unit and acknowledged/ registered by the Director of Industries in case of unit in medium and large scale sector.Risk Variable No. 4 Price of starch Probability distribution:
MIN MEAN 10 NORMAL MAX 12
Standard deviation: Degree of skewness:
0. General Rules All existing and new industrial units subject to fulfillment of such requirements as may be specified by the Directorate of Industries from time to time. to be fixed by a committee consisting of
. tiny. Government of Himachal Pradesh)
1. respectively. The unit should be registered under the registration scheme of Government of India in case of Village Industry. Industrial units located in industrially developing areas and industrially backward areas shall be eligible for incentives and concessions only if it employs atleast sixty five percent and eighty percent of its total manpower employment from amongst the bonafide Himachalis. in the self -employed ventures where the owner is running the unit without employing any manpower. Department of Industries.
Units in SSI/Medium and Large Sector. recreational facilities. the same shall be allotted with the prior approval of the Secretary (Industries) to the government of Himachal Pradesh. Land in industrial areas shall be allotted on lease hold basis by the Director of Industries.
. District Industries Centre/ member Secretary. The Director of Industries may. the provisional allotment shall be canceled and the possession of the plot/shed shall be resumed. and for a period of 5 years for units in industrially developing areas.60.meters. shops etc on commercial basis. The earnest money along with premium /rent paid by the allottee shall be forfeited. Chambaghat. The interest chargeable on delayed payment would be 18% or as fixed by the Government from time to time. medical institutions. Director of Industries & M. if satisfied extend the period of the provisional allotment on the merits of each case.meters and in case of area exceeding 10.. or any other officer authorised by him/her. In case an allottee fails to take effective steps for the setting up of the unit within the stipulated period. The land/shed for industrial purposes shall be allotted by a committee constituted for the purpose on first come first serve basis unless the committee for reasons to be recorded in writing decides otherwise.000 in case of built up shed. if any party intends to make the entire payment in lump sum it may be accepted by commuting the instalments but the terms and conditions of the allotment shall remain the same. Sales Tax Concessions Village Industries/Tiny units: New Village industries with fixed capital investment upto Rs. Adequate land appropriately located may be set apart for development of social infrastructure and public utilities such as banks. In case of units in SSI/medium and large sectors. However.HPSIDC. which shall be refundable within three months in the event of non allotment of plot/shed. land for units in priority sector may be allotted on out of turn basis. For the purpose of industrial housing for workers. and up to sales turn over of Rs.00 lakh per annum for a period of 8 years in industrially backward areas & in priority sector.10 lakh and financed wholly by HPKVIB/ KVIC shall be exempted from payment of sales tax for a period of 8 years in industrially backward areas and in priority sector. 30% of the premium of land shall be payable at the time of allotment and balance in 5 equal annual instalments. land can be provided at concessional rate. Baddi and Barotiwala shall be re-allotted through open auction/inviting bids from general public for industrial purposes. post offices. 45 lakh per annum for a period of 5 years in industrially developing areas. Single Window Agency on a prescribed form along with earnest money in the shape of a bank draft.000 sq. A separate set of guidelines shall be issued by the Government for allotment of land for these purposes. non fruit/vegetable based wineries and bottling plants (both for Country Liquor and Indian Made Foreign Liquor). 3. sales tax shall be leviable at a concessional rate of 25% of the applicable rate on the sale of products upto Rs. Any plot resumed in industrial areas of Paonta Sahib. The earnest money shall be equivalent to 10% of the premium of land in the case of plot and Rs.P.D. In respect of other new village industries and tiny units.000 sq. The allottee shall take steps to set up the unit within the stipulated period of 2 years before a regular lease deed/rent deed is entered into between the Department and the allottee.. however. Kala Amb. However. for a period of 95 years subject to a maximum area of 10. The plot/shed will be provisionally allotted for a period of two years and possession handed over to the applicant after entering into an agreement to lease out/rent out.Secretary Industries to the Government of H. educational institutions. This concession will not be admissible to the produce of breweries/distilleries.10. The application for allotment of plot(s)/ shed(s) for industrial purposes shall be made to the concerned General Manager.
distilleries. the rate of subsidy shall be reduced accordingly. whichever is later. second year in the 7th year and so on. This means that the tax collected in the first year shall be payable in the 6th year.deferment of General Sales Tax for a period of 8 years on the goods other than produce of breweries. Such an option shall have to be exercised by the 31st July. Period of this concession will commence from the date of commencement of commercial production or from the date of notification of Department of MPP and Power. Period of these concessions in case of new industrial unit(s) shall commence from the date of commencement of commercial production or from the date of notification issued by the Department of Excise & Taxation in this regard. whichever is later. In case rate of interest after subsidy falls below 8%. The eligible existing units shall have an option either to opt for the General Sales Tax Concessions as provided in above for the unexpired period and subject to their continuing eligibility under the previously applicable rules or to continue to avail these concessions as per those rules. shale and limestone used by the existing and new industrial unit(s) for captive manufacturing within the State shall be leviable at a concessional rate of 1% upto 31-03-2009.00 lakh per unit per year for priority sector units set up in industrially backward areas for a period of 6 years provided that the unit pays a minimum of 8% interest after availing interest subsidy. new or existing. Interest Subsidy Subsidy in the rate of interest on term loan taken by tiny and SSI units from financial institution(s) shall be given @ 4% subject to a ceiling of Rs. In case of existing unit(s). on the power generated from its captive power generation set(s)/ hydel plant(s). Power Concessions New industrial unit(s) in priority sector shall be exempted from payment of electricity duty for a period of 8 years in the industrially backward areas and for 5 years in industrially developing areas. No electricity duty will be charged from any industrial unit. 1999 failing which they shall be covered by the previously applicable rules. The existing eligible units availing power tariff freeze subject to their continuing eligibility under the previously applicable rules shall continue to avail the concession as per those rules. The tax deferment during first 8 years or 5 years as the case may be shall become due for payment after a period of 5 years from its collection. non-fruit/vegetable wineries and bottling plant (both for country liquor and Indian Made Foreign Liquor) upto 31-03-2009. The GST on the raw material. processing and packaging material except timber. non-fruit/vegetable based wineries and bottling plants (both for Country Liquor and Indian Made Foreign Liquor) manufactured by the new industrial units set up in the industrially backward areas and in priority sector. and for a period of 5 years for units in industrially developing areas subject to furnishing of security/bank guarantee to the satisfaction of the Excise & Taxation Department of Government of Himachal Pradesh. The rate of power tariff to such residential complexes both new and existing shall be as applicable to domestic consumers 5.2. these concessions would be available from the appointed day or from the date of notification. The industrial units employing atleast 50 workers may be permitted on case to case basis to build residential complexes for industrial workers within the campus. Central Sales tax at a concessional rate of 1% shall be leviable on the goods manufactured by new and existing industrial units except produce of breweries. whichever is later. This concession shall also be admissible on term loan
. distilleries. 4. The existing unit(s) availing this incentive shall continue to avail the same under the previous rules for the unexpired period of its/their eligibility.
10.2. Price Preference The products of tiny/SSI units manufactured in H.for SSI unit(s). The GST on the raw material. This subsidy shall not be admissible on defaulted/rescheduled installment(s) and the period of default shall be counted for determining the period of eligibility.000/. For large and medium industries. This subsidy will be admissible on the creation of new assets only. Land/shed shall be allotted on out of turn basis at a nominal price /rent to be determined by the Government from time to time. Corporations and Boards. Facility for control devices quality. processing and packaging material except timber. technical upgradation & Pollution
Government may provide common effluent treatment plant(s)/ pollution control devices and common testing facilities in Industrial Areas/ Estates/ Growth Centres or in a cluster of industries as a part of infrastructure. availing this incentive irrespective of their status. the price preference may be upto 3%. vegetable and maize based units consuming atleast 60% of their total consumption from local produce per annum and located in industrially backward areas (except produce of breweries.10. 8. shall be eligible for the following incentives. may be given a price preference of upto 15% in the process of finalisation of rate contract(s) in respect of purchases affected by the Government Departments. productivity. The existing unit(s). Such an option shall have to be exercised by 31st July. While considering allotment. 9.5 lakh per unit.S. The sanction/ disbursement shall be governed by the erstwhile C. shall have an option either to opt for this concession under these rules for the unexpired period and subject to their continuing eligibility under the previously applicable rules or to continue to avail this concession as per those rules. such unit(s) shall get precedence even over units in priority sector. shale and limestone used by the existing and new industrial unit(s) for captive manufacturing within the State shall be leviable at a concessional rate of 1% upto 31-03-2009. 1999 failing which they shall be covered by the previously applicable rules. Semi-Government Organisations. GST exemption for a period of 10 years will be admissible to new industrial units. non-fruit/ vegetable wineries and bottling plant both for country liquor and Indian Made foreign liquor).000/.I.in case of tiny unit(s) and Rs.P. Vegetable and Maize Based units The fruit. The subsidy shall be disbursed through the concerned financial institution. Manual. 7. 6. Central Sales Tax at a concessional rate of 1% shall be leviable on the goods manufactured by new
.20.taken from financial institution for expansion/ diversification. distilleries. Subsidy on the cost of preparation of feasibility report New industrial unit(s) in tiny and small scale sector will be eligible for subsidy on the cost of preparation of feasibility report @ 50% of its cost subject to a ceiling of Rs. Capital Investment Subsidy Tiny units in priority sector and coming into commercial production after the appointed date in industrially backward areas shall be given a capital investment subsidy @ 10% of fixed capital investment subject to a ceiling of Rs. Special Package of Incentives to Fruit.
Note:. Such new industrial unit(s) shall be exempted from the payment of State excise duty for a period of 7 years. the rate of subsidy shall be reduced accordingly. as eligible.
. Such new industrial unit(s) shall be exempted from the payment of electricity duty for a period of 10 years. non-fruit/vegetable based wineries and bottling plants (both for Country Liquor and Indian Made Foreign Liquor) in the tribal areas of the State.6 shall also be available to such unit(s).The quantum & duration of package of incentives.5 and 7. ancillarisation etc. whichever is later. on case to case basis. the Government may grant project specific special package to any new medium and large industrial unit proposed to be set up in the State which has potential for substantial employment generation. as notified from time to time. unit(s) in these areas shall be treated at par with the unit(s) in industrially backward areas. these concessions.) for a period of 10 years from the date of commencement of commercial production or the date of notification by the concerned department(s).I. No electricity duty shall be charged on the power generated from D. shall be exempted from payment of any State taxes and duties (excluding levies in the shape of cess. 11 Incentives Available to Units in Tax Free Zone Any new industrial unit(s) except breweries. would be available from the appointed day or the date of notification. The sanction/disbursement shall be governed by erstwhile C.S. Manual. In case the rate of interest after a subsidy of 10% falls below 6%. 25. Project Specific Special Package : Notwithstanding anything contained thereinbefore. distilleries.G. whichever is later. provided that the unit pays a minimum of 6% interest after availing the interest subsidy. As regards other incentives.00 lakh p. whichever is later. 12. The existing units under this category. shall continue to be governed by the previously applicable rules. royalties etc.10. In case of existing unit(s)..& existing industrial units upto 31-03-2009.6 above will be available to new industrial unit(s) from the date of commencement of commercial production or from the date of notification issued in this regard. Period of these concessions as provided in Rule 8. unless specifically provided otherwise.a.00 lakh. This subsidy shall not be admissible on defaulted/rescheduled installment(s) and the period of default shall be counted for determining the period of eligibility. Such new industrial unit(s) shall be eligible for a subsidy of 10% in the rate of interest on term loan for a period of 6 years subject to a ceiling of Rs.set/ hydel plant.2 to 8. fees. in the public interest. both direct and indirect. concessions & facilities to various categories of units are given in Annexure-II to V to these Rules. The incentives of price preference and subsidy on the cost of preparation of feasibility report as provided under rule 7. Such new industrial unit(s) will be entitled to an investment subsidy @ 25% on cost of plant and machinery installed subject to a ceiling of Rs.
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