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DETAILED PROJECT REPORT (DPR)

ON
50 KLPD ETHANOL PLANT
FROM CANE MOLASSES
AT
Village Nani Paniyali, PO Palitana, District Bhavnagar,
Gujarat.

Prepared for

M/s. Yeast Alco Enzymes Ltd.


Registered Office:
Divya Apartment Nr. Mithakhali Garnala
Navrangpura Ahmedabad 380009

Prepared by

NMR Technocon.
502, Pelican, Nyati Encalve, mohammadwadi
Hadpasar, Pune 411028

February, 2016
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DETAILED PROJECT REPORT (DPR)


ON
50 KLPD ETHANOL PLANT FROM CANE MOLASSES

TABLE OF CONTENTS

Chapter Title Page No.


No.
DISCLAIMER
EXECUTIVE SUMMARY I – VII
1. INTRODUCTION
1.1 Project Background 12
1.2 Promoter’s Background & Experience 12
1.3 Cane Availability Projections 13
1.4 Ethanol Industry 14
1.5 Objectives & Scope of Work 18
1.6 Methodology 18
1.7 Acknowledgements 18
2. PRODUCTS & PROCESS
2.1 Products 19
2.2 Process 19
2.3 Requirement of Molasses 21
2.3.2 Molasses balance 21
3. SITE DETAILS AND INFRASTRUCTURE
3.1 Project Site, Key Features 23
3.2 Raw Materials 24
3.3 Utilities & Consumables 24
3.4 Manpower 25
4. DESIGN BASIS
4.1 Introduction 26
4.2 Design Basis, Fuel ethanol from molasses 26
5. PLANT LAYOUT
5.1 Layout Considerations 30
5.2 Ash, Effluent and Sewage Disposal 30
5.3 Plant Layout 31
5.4 Approach and Internal Roads 31

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DETAILED PROJECT REPORT (DPR)


ON
50 KLPD ETHANOL PLANT FROM CANE MOLASSES

TABLE OF CONTENTS (CONTD…)

Chapter Title Page No.


No.
6 PROJECT PREPAREDNESS AND IPLEMENTATION
SCHEDULE
6.1 NoC’s / Approvals / Permissions 32
6.2 Management & Administration 32
6.3 Technical & Financial Tie Ups 33
6.4 Project Management 33
6.5 Implementation Schedule 33
7. ESTIMATED CAPITAL EXPENDITURE
7.1 Land & Site Development 35
7.3 Equipment 36
7.4 Miscellaneous Fixed Assets 36
7.5 Preliminary & Pre-operative Expenses 36
7.6 Contingencies 37
7.7 Margin Money for Working Capital 37
8. FINANCIAL VIABILITY
8.1 Basis & Assumptions 38
8.2 Cost Summary 40
8.3 Means of Finance 40
8.4 Financial Viability Indicators 40
9. SOCIO-ECONOMIC AND ENVIRONMENTAL 42
BENEFITS
10. CONCLUSIONS & RECOMMENDATIONS
10.1 Project SWOT Analysis 43
10.2 Risk & Mitigates 44
10.3 Key Management Features 44
10.4 Conclusions & Recommendations 44

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DETAILED PROJECT REPORT (DPR)


ON
50 KLPD ETHANOL PLANT FROM CANE MOLASSES

LIST OF SCHEDULES

Schedule Title
No.

A Cost of Project & Means of Finance

B Estimated Cost of Production & Profitability Statement

C Debt Service Coverage Ratio

D Cash Flow Statement

E Balance Sheets Forecast

F Breakeven Analysis

G Sensitivity Analysis

H Payback Period

I Molasses Production/Sales/ Stock details

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DETAILED PROJECT REPORT (DPR)


ON
50 KLPD ETHANOL PLANT FROM CANE MOLASSES

LIST OF APPENDICES

Appendix Title
No.
I Company Incorporation Certificate
II Promoter Details of YAEL
III Plant layout
IV Annual Reports of YAEL
V IEM License for ethanol Plant
VI Detailed Land Documents
VII Detailed Process Description and Flow Charts
VIII Technical and commercial offers

IX Implementation Schedule
X Processes available for Effluent Treatment – Merits and Demerits

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DISCLAIMER

1. This Detailed Project Report (hereinafter referred to as Report), the business plan/financial projections, if
any and its contents are confidential. Accordingly, Report and its contents are on basis that will be held in
complete confidential.

2. By accepting a copy of this report, the recipient agrees to keep its contents and any other information,
which is disclosed to such recipient, confidential and shall not distribute , divulge disseminate any
information contained herein, in part of in full, without the prior approval of NMR Technocon (NMR).

3. This report is prepared exclusively for the benefit and for the internal use of the recipient and /or its
affiliates and does not carry any right of publication or disclosure to any other party in any case.

4. The client has engaged NMR for preparation of Detailed Project Report on 50 KLPD ethanol plant, we
have relied upon and assumed, without independent verification, the accuracy and the completeness of all
information given by the client which has frequently been referenced in this report.

5. The Report developed by NMR has used inputs and conclusions drawn out of discussion with the client
and reference to project specific studies, and other information/documents obtained by NMR from various
sources/available publicly, which NMR believes to be reliable. NMR has not carries out any independent
verification for the truthfulness of the same and its accuracy and reliability cannot be guaranteed.

6. NMR and their respective team (collectively referred to as “Relevant Persons”) expressly disclaim any
responsibility or liability for any loss, damage or inconvenience caused to anybody whether directly or
indirectly due to this Report and the information contained herein. NMR may be exempted from all errors
and omissions in this Report.

7. This presentation may include future expectation, projections, or forward looking statements. These
forward looking statements involve known and unknown risks, uncertainties and other factors that may cause
actual events to be materially different from future events expressed or implied by such forward looking
statements.

8. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or
resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication,
availability or use would be contrary to law, regulation or which would subject NMR and its affiliates to any
registration or licensing requirement within such jurisdiction. Persons in whose possession this document
may come are required to inform them of and to observe such restriction.

Prepared by Checked By
Rohan Sinha M.P. Sinha
Consultant CEO

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Executive Summary

Project at a Glance

Yeast Alco Enzymes Limited (YAEL) is a company registered in state of Gujarat under the companies Act,
1956.

The promoters sensed the great availability of sugarcane in the saurashtra region of Gujarat and increasing
demand of power & ethanol and keeping in view, the needs of the local farmers, those cultivate sugarcane in
the command area with great demand of Ethanol.

The proposed ethanol plant project will produce fuel ethanol from molasses available from the other sugar
factories in surrounding areas. The steam will be generated by the boiler and the power will be purchased
from already established power supply grid to the factory location.

The factory was functional till 2010 and it was closed due to decreasing efficiency and high maintenance of
the old plant, but now the CMD of the company Mr K.S PravinSingji R Jadeja is willing to revive the
company with totally new plant and machinery setup at the same location.

The factory is spread across 24 acres of land which is not hypothecated in any institution. The factory has
Licence to operate the distillery from. The company also has all the pollution clearance with them from
Gujarat pollution board and GPCB to operate the distillery in the stated location.

Project Rationale

The promoters have extensively and carefully analyzed the present and future scenario of Ethanol. They have
also studied carefully the present irrigation facilities and surplus molasses, as well as future potential of
ethanol demand in the area. The command cane area has excellent irrigation facilities due to the perennial
water source. With this background, the promoters have finalized the said project. Promoters having
experience in distillery and have been able to foresee the ethanol potential in the command area.

YAEL will generate about 135 Lacs Litter of ethanol will be generated using 54000 MT of molasses, with
average 250BL/Ton of Ethanol recovery in 270 days of working in an year.

The molasses required for 270 days of working will be procured from nearby stand alone Sugar factories
which do not have distillation unit with them.

The current policies in India are conducive and backed by favourable regulatory framework for manufacture
of fuel ethanol, as well as regarding support for private investment in such project.

The promoters also have acknowledged in depth, the socio-economic and environmental value addition of
the captioned project to the local people, region, State and the Country, as well as its win-win situation to all
the stakeholders involved.

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The Promoters & Project Preparedness

YAEL is promoted by

Shree. K. S. Pravinsinhji R jadeja


Smt M.H. Mankumraidevi

The CMD of YAEL is highly educated and has 25 years of experience in the distillery industry. His huge
practical experience in distillery industry will be immensely helpful in executing and operating the proposed
ethanol project. The management has successfully operated the same distillation plant in profit for 20 years
with best efficiency soon after commencement of the plant in 1984. The unit was one of the best performing
unit as per AIDA (All India Distillery Association) monthly efficiency data published every month for all
Indian Distilleries. Mr M.P.Sinha presently chief consultant appointed to erect and operate the unit now, was
associated with YAEL during 1982 to 1987 as General manger of the unit. The unit had been one of the first
three efficient Distilleries on all India bases and at plenty of times the unit was best as per the AIDA
efficiency standard which can be even now cross checked through AIDA data bank.

YAEL already has a technical / managerial team of highly qualified engineers, contract & arbitration experts,
agricultural officers and managerial personnel for implementation and operation of the captioned project.

YAEL has already obtained IEM from the Ministry of Commerce & Industry, Govt. of India for setting up 50
KLPD ethanol plant.

Project in Brief

The proposed ethanol plant of 50 KLPD capacities will employ fermentation, multi pressure distillation
system, & composting. Nearby Sugar mill will supply molasses, while the boiler will provide the steam and
power will be purchased from the grid for the proposed ethanol plant.

Financial Highlights
Project Cost: (Rs. Lakh)
Particulars Ethanol Plant
Land and Site Development 0
Buildings 25
Indigenous Plant and Machinery 1593
Miscellaneous Fixed Assets 166
Prelim. & Preoperative Expenses 100
Contingencies 56
Working capital margin 860
Total 2800

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Means of Finance:
(Rs. lakh)
Particulars Ethanol Plant
YAEL Equity / Internal accruals (32%) 603
Bank / F. I. Loan (68%) 2170
Total 2800

First year Fifth year


Estimated W/C Requirements Rs. Lakh 1039.07 1386.71
Estimated Annual Turnover Rs. Lakh 5085.15 6538.05
Profit Before Tax Rs. Lakh 762.29 1015.94
Accumulated Cash Surplus Rs. Lakh 736.22 859.81
Employment potential Nos. 54 54
Debt Service Coverage Ratio Average 2.16
(DSCR)
Maximum 2.66
Minimum 1.35
Payback period Years 4
Rate of Return on total project cost % 14.46 %

Strengths

The main strengths of this integrated project include:

1. Background and experience of the promoters in running distillery with utmost efficiency which was
dully recognized by AIDA (All India Distillery Association)
2. The Company has IEM from the Ministry of Commerce & Industry, Govt. of India for setting up 50
KLPD ethanol plant.
3. Commitment & vision of promoters, with forward integration planning to re-establish the plant.
4. Excellent irrigation facilities with a reservoir dam in very close proximity to provide water to the
plant
5. Many stand alone distilleries in 300KM radius to provide molasses to ensure 270 days of
functioning.
6. Building construction and foundation is already in place.
7. Project location in potential sugarcane rich area
8. Ensured molasses availability
9. Demand supply gap in fuel ethanol in India
10. Conducive policy / regulatory frame work
11. High order of socio-economic and environmental value to the local populace
12. All pollution clearance from Gujarat pollution board and GPCB to consent to operate at the location
13. Latest technology equipment with highest efficiency
14. Sound techno commercial viability

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Risks Factors

Risk Factors Remarks


Industry Risk The Industry is cyclical and highly regulated. The
price of Ethanol is directly controlled by the govt.
The factory has strategically located in heavy sugar
belt with many stand alone sugar mills to provide
molasses for smooth functioning. Therefore, the
company has the ethanol plant to protect its margins
and profitability and avert cyclicality.
Implementation Risk YAEL has experienced people in its management
team. Keeping in view overall good track record, it is
felt that YAEL has the competence for timely
implementation of project as per the schedule. The
new ethanol plant shall be implemented on turnkey
basis. The ethanol project being implemented on
turnkey basis, will reasonably assure completion of
the project within the envisaged cost. However, any
increase in cost of plant & machinery shall be met by
the internal accruals.
Operating Risk The company is not new to the production and
marketing of rectified spirit, it is in the business of
manufacturing and marketing of rectified spirit for
more than 31 years. The new ethanol project plant is
being implemented on a turnkey basis and will be
backed by suitable clauses in terms of warranty and
guarantee. As such it is felt that the operating risks
would be mitigated to a considerable extent.
Though the availability of adequate quantity of
molasses is also dependent on the supplies from
neighbouring units, the company has identified
nearby sugar mills from where molasses can be
sourced.
Credit Risk Average DSCR of the ethanol project is estimated to
be 2.16, which is satisfactory. YAEL has been regular
in meeting its commitments to FIs/Banks and SDF.
Financial Risk The company is comfortably placed to infuse its
equity contribution in the project and is awaiting
sanction of term loan from banks. As such, no
problem is envisaged

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Raw Material Risk YAEL has announced a reasonable remunerative price


in line with the market trend and neighbouring sugar
mills. The molasses required for the ethanol plant
shall be readily available from the nearby sugar plant.
The Neighbouring sugar mills has already shown
willingness to supply the molasses.
Market Risk/ off take risk/ payment risk The Govt. of India has allowed mixing 5% ethanol in
petrol and has increased of ethanol percentage to
10%, recently. Since there is need for huge investment
to set up additional required capacity of 96 million
litres of ethanol by 2017, YAEL is not expected to
face any problem in selling the ethanol from proposed
project.

Implementation Schedule

The entire project will be commissioned by December 2016 after the financial closure expected by March
2016. Meticulous planning and strong project management proposed will ensure this schedule.

Conclusions

Over all, the project is well conceived and conceptualized, with sound commercial viability. The expected
financial returns are quite satisfactory. The project is being implemented by promoters having requisite
background and experience and with employment of experienced professionals, experts and consultants. All
perceived risks have adequate safe guards. The project is recommended for lending by financial institutions,
as well as SDF.

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CHAPTER – 1

INTRODUCTION

1.1 Project Background

1.1.1 This Detailed Project Report (DPR) has been prepared for M/s Yeast Alco Emzyme Limited. (YAEL)
by NMR Technocon (NMR), Pune, for setting up 50 KLPD ethanol plant from molasses as raw material at
Village palitana, PO palitan, District Bhavnagar, Gujarat.

1.1.2 M/s Yeast Alco Emzyme Limited., is a Limited Company registered in the State of Gujarat under the
Companies Act, 1956. YAEL has been established in 1982 and has been smoothly managed by the CMD Mr
K.S Pravinsinhji R Jadeja.

Appendix I gives certificate of incorporation & commencement of business and Memorandum of Association
& Articles of Association of YAEL.

YAEL proposes to revive the company by procuring new plant and machinery for the plant location with
50KLPD capacity in Village Nani Paniyali, PO Palitana, District Bhavnagar, Gujarat.

1.1.3 YAEL has valid IEM from the Ministry of Commerce & Industry, Govt. of India for running 50 KLPD
ethanol plant.

Appendix III gives IEM license for ethanol plant

1.1.5 Water required for the proposed fuel ethanol plant will be made available through dam which is very
near to the plant location. The company has all the clearance to procure water from the dam for the factory
functioning.

1.2 Promoter’s Background & Experience

YAEL is promoted by:-


Shree. K. S. Pravinsinhji R jadeja
Smt M.H. Mankumraidevi

The CMD of YAEL is highly educated and has 35 years of experience in the distillery industry. His huge
practical experience in distillery industry will be immensely helpful in executing and operating the proposed
project. The management is successfully operated the unit till 2010 since commencement in 1984.

Appendix-II Audited Annual report provides the Promoter Details of YAEL along with the share holding.

After scrutinizing the bio-data and experience of key Directors, it is identified that the management of YAEL
is capable of undertaking the captioned integrated project.

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Under the guidance of Shri K.S Pravin Sinhji Jadeja, CMD with his management team have already carried
out several activities in the command area, including land acquisition, site development etc. YAEL is also
planning for cane development in command area.

A dedicated Project Team of YEAL has been functioning since September, 2015, along with appointed
experts and consultants, for speedy and successful commissioning of this project.

YAEL already has a technical / managerial team of highly qualified engineers, contractors & arbitration
experts, agricultural officers and managerial personnel for implementation and operation of the ethanol
project.

Molasses Production on cane in the command area:

A. SOUTH GUJARAT

Sr. No NAME OF SUGAR FACTORY/PLACE QUANTITY (IN M.T)


1 BARDOLI 76975
2 CHALTHAN 36585
3 COPPER 17026
4 GANDEVI 45996
5 KAMREJ 20176
6 KANTHA 10691
7 MADHI 49853
8 MAHUVA 32116
9 MANDVI 1355
10 MAROLI 21875
11 NARMADA 40802
12 PANDVAI 30501
13 SAYAN 39349
14 UKAI 0
15 VADODARA 27484
16 VALSAD 16175
17 VATARIA 30398
TOTAL (A) 497346

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B. SAURASHTRA

Sr. No NAME OF SUGAR FACTORY/PLACE QUANTITY (IN M.T)


1 KADINAR 11354
2 TALALA 0
TOTAL (B) 11354
TOTAL (A)+ (B) 508700

1.4 Ethanol Industry

1.4.1 Industry Overview

Ethanol is used as an automotive fuel by itself and can be mixed with gasoline to form what has been called
"gasohol" FUEL ETHANOL- the most common blends contain 10% ethanol and 85% ethanol mixed with
gasoline. Over 1 billion gallons of ethanol are blended with gasoline every year in the United States. Because
the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in
fewer emissions. Since ethanol is produced from plants that harness the power of the sun, ethanol is also
considered a renewable fuel. Therefore, ethanol has many advantages as an automotive fuel.
Molasses is one of by-products of sugar industry which is used to produce rectified spirit/alcohol for making
liquor and fuel. Traditionally, molasses has been used in India to produce rectified spirit and alcohol of higher
than 95% purity for producing liquor for human consumption and for producing various chemicals. However,
with technological developments in the recent past, molasses has been effectively used to produce
bio-ethanol for blending with petrol as a fuel.

1.4.2 Global Scenario

Brazil is the second largest producer of ethanol globally after U.S. While U.S. produces ethanol from corn,
Brazil manufactures ethanol from sugarcane. Brazil has mandatory blending ratio of ethanol in gasoline
ranging from 18% to 25%. The blend rate was as high as 25% before September 2011 and was reduced to 20%
due to drop in cane output hence affecting the ethanol production. Currently, flex-fuel cars, which can use
either ethanol or blended gasoline, in Brazil account for about 53% of the total car fleet and around 90% of
the new vehicles’ sales. The proportion of the flex-fuel cars are expected to cross 80% by 2020. Currently, the
Brazilian light vehicle fleet has been increasing by 6.7% y-o-y since 2003 with currently 90% of the new
vehicles being flex-fuel cars. Thus, there exists an increasing demand in Brazil for ethanol which is
encouraging for the sugarcane industry.

1.4.3 Indian Scenario

The Indian sugar industry today is at a very critical juncture and needs investments for expansion,
modernization, as well as implementation of ethanol plants & cogeneration power plants, for their long term
integration. The recent Government policy has pegged 5% ethanol blending with fuel (with possibility to

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extend to 10% shortly), at an attractive price of Rs. 48.50/Liter. for ethanol. This provides an excellent
opportunity to the sugar factories to implement ethanol projects in the immediate future.

There are 429 distilleries in India, 216 connected to sugar factories & 213 standalone, with about 100
distilleries having installed ethanol manufacturing facilities, which can produce over 5 billion litres of
rectified spirit (alcohol) per year in addition to 2 billion litres of fuel ethanol. Despite of conducive policy
environment today, the ethanol industry still faces several issues regarding timely evacuation of ethanol by
the petroleum companies, payments, etc., as well as strict pollution control norms imposed by the Central &
State Governments and financing by banks / financial institutions / SDF.

The Central Pollution Control Board (CPCB) has prescribed and implemented zero discharge norms from
effluent for the distillery industry with effect from January 01, 2006. CPCB had provided about three year
time to the distillery industry to achieve zero discharge through any process of distillery effluent treatment
suitable to each distillery. The current stringent pollution control policies & norms for effluent through
distilleries have made many distilleries to shut down their operations, thereby making heavy losses with the
investments becoming dead. Deployment of Incineration Type (Slop Fired) boiler has proved to be an
effective solution in resolving this issue.

Today, Indian distillery industry broadly consists of two parts:

Production of alcohol from molasses for industrial alcohol.


Production of alcohol from molasses for liquor purposes.

Ethanol demand for fuel blending is a recent phenomenon. For this purpose, alcohol from molasses is used.

The potable distillery producing Indian Made Foreign Liquor (IMFL) has a steady but limited demand. The
alcohol produced is now being utilized in the ratio of approximately 52 per cent for potable purpose and the
balance 48 percent for industrial purpose.

1.4.4 Demand of Ethanol:

Since 1977, several technical committees and study groups have examined the issue of blend of Ethanol with
petrol. Announcements were made on this issue in Parliament in December 2001 and March 2002.

Auto fuel policy was declared in August 2002.

The Ministry of Petroleum, recently issued a gazette notification, dated 11th of January, 2013 making 5%
ethanol blending with petrol mandatory across the country. The 5% ethanol blending programme was so far
made applicable in only 13 states of the country with blending level of about 2% against a mandatory target
of 5%, but with this gazette notification it becomes mandatory for OMCs to achieve 5% ethanol blending
programme for the entire country

The Report of the Committee on Development of Biofuels was published by the Planning Commission of
India. It gave projections of demand and supply of ethanol for India for the end of each five-year plan. This

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table shows the break-up of production and consumption of ethanol in terms of molasses and cane.
Projections of demand and supply of ethanol (Million Liters)

Year Ethanol Production Ethanol Utilization Ethanol Petrol


Molasses Cane Total Industry Potable Balance Blending Demand
5% 448
2001-02 1775 0 1775 600 648 527 10% 896 8960
20% 1792
5% 638
2006-07 2300 1485 3785 711 765 2309 10% 1276 12672
20% 2552
5% 814
2011-12 2300 1485 3785 844 887 2054 10% 1628 16286
20% 3257

5% 1039
2016-17 2300 1485 3785 1003 1028 1754 10% 2078 20785
20% 4157
(Source:-Planning Commission)

From the above table it can be concluded that actual production of ethanol in India has not kept pace with the
demand. Also with robust growth for chemical and potable industries it will mean greater shortage of ethanol
in the coming years ahead.

1.4.5 Government Policy

In 2006, GOI mandated 5% ethanol blending with petrol (EBP) programme to directly benefit the sugarcane
farmers by assuring the sugar industry a stable and reasonable return for the molasses and then passing a
significant part of the same to the farmers. But since then the programme has been struggling to take off
despite the fact that the Cabinet Committee on Economic Affairs (CCEA) in November 2009 directed that a
financial penalty be imposed on OMCs for their failure to reach targets.

In August 2010, the CCEA set up the Saumitra Chaudhuri committee for determining the ethanol pricing
after a Committee of Secretaries (CoS) failed to reach at a consensus. So far, the OMCs have been contracting
ethanol at the provisional procurement price of Rs 27 per litre, fixed by the CCEA that time. The Ministry of
Petroleum and Oil Marketing Companies (OMCs) put a specific condition in September 2010, that ethanol
should be produced from domestic molasses only i.e., molasses or alcohol cannot be imported by the ethanol
producers and has to be produced only from molasses and not sugarcane juice or food grains.

In November 2012, the CCEA has made it mandatory for Oil marketing companies (OMCs) - Bharat
Petroleum, Hindustan Petroleum and Indian Oil Corporation - to blend 5% ethanol with petrol. This is likely
to reduce the fuel import bill and lower India's dependence on fossil fuel as the ethanol prices are lower than
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petrol. OMCs have been blending ethanol with petrol for the past two years but the policy was partially
implemented in absence of any clear directive. The Committee, headed by the Prime Minister, has also
approved market-based pricing of the biofuel, opening the market for ethanol producers - mostly sugar
companies. This shall result in an increased demand for ethanol by OMCs.

The national bio-fuel policy, approved by the Government of India, has plans for a 20% ethanol blending
programme by 2017 from the current mandated 5% blending & recently increased to 10%, to reduce India’s
dependence on fossil fuel imports.

In order to improve the availability of ethanol, the CCEA in its meeting held on 10.12.2014, has decided as
follows:

(i) The delivered price of Ethanol would be fixed in the range of Rs. 48.50 per litre to 49.50 per litre,
depending upon the distance of distillery from the depot/installation of the OMCs as per the slabs
given below:

Distance of distillery in
km. Rs. Per Litre
0-100 48.5
101-300 49
>300 49.5

(ii) The rates mentioned above would be delivered price and inclusive of all Central and Statutory
levies, transportation cost, etc. which would be borne by the Ethanol suppliers.
(iii) If the need arises to reduce the Retail Selling Price (RSP) of Petrol, then such reduction would
proportionately factor in the requirement of maintaining the fixed cost of purchase of Ethanol.
(iv) The OMCs will incorporate “Supply or Pay” clause duly backed up with bank guarantee up to
10% of the order value in their Supply agreement with Ethanol suppliers.
(v) OMCs will sign Memorandum of Understanding (MOU) with the State Governments for a
comprehensive system for un-interrupted inter-depot transfer of Ethanol within and outside the
State. This may include annual excise permits to OMCs for movement of Ethanol both within
and outside the State and other relevant and necessary measures.

1 State-wise breakup of the quantities of Ethanol as on 19.01.2014 is as under:-

Sl. No. State Total Qty offered LOI PO Receipt % achieved


Industry by Bidders Quantity Quantity Quantity as against PO
Rqmt in in KL on 19.1.2014 Quantity
1 Andhra KL103121 49100 21600 21772 20480 94%
Pradesh
2 Delhi 56189 41900 19100 35674 17379 49%
3 Gujarat 68268 6100 1000 999 618 62%

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4 Haryana 53797 38084 36084 18492 13241 72%


5 Karnataka 147982 59000 45700 45702 26745 58%

6 Maharashtra 315252 47600 38800 26104 21505 82%

7 Punjab 46051 28500 27359 28183 8703 31%

8 Rajasthan 48561 4800 4000 4000 900 23%

9 Tamil Nadu 116176 48000 36719 36717 10651 29%

10 Uttar 201876 208300 169341 164559 84478 51%


Pradesh
11 Uttarakhand 15134 400 400 0 0 0
Total 550784 400103 382192 204700 54%

(Source: MINISTRY OF PETROLEUM & NATURAL GAS)

1.5 Objectives & Scope of Work

The objective of the assignment was to prepare Detailed Project Report (DPR) on the captioned ethanol plant
being set up at Village palitana PO Palitana district bahvnagar, Gujarat, in line with the requirements of the
financial institutions.

YAEL appointed NMR Technocon. (NMR), Pune for preparation of this Detailed Project Report.
The scope of work mainly included review of the promoter background, project concept, design and key
parameters, technical specifications, plant layout, environmental & social considerations, project
preparedness, estimated capital expenditure, financial viability, conclusions and recommendations.

1.6 Methodology

For preparing this Detailed Project Report, NMR deputed a task team of in-house coordinators and expert
associates. NMR submitted list of data / information / documents required for preparation of DPR. NMR’s
task team undertook visit to factory site. The budgetary estimates for this DPR, for major plant and
equipment, were procured from competent suppliers.

Acknowledgements

We wish to record deep sense of gratitude to YAEL management, for entrusting this challenging assignment.
In particular, we are thankful to Mr K.S Prain Sinhji R Jadeja, Founder Chairman, Mr. M.P. Sinha, cheif
consultant and all other concerned staff of YAEL, for providing required guidance and data support.

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CHAPTER – 2

PRODUCTS & PROCESS

2.1 Products

The proposed ethanol plant will undertake manufacture of following product:

 Fuel Ethanol of 50 KLPD capacity

Appendix VIII - gives the details of the technical and commercial offer.

Process

The brief manufacturing processes for project component are given below:
The process envisages use of B-heavy procured molasses from nearby sugar factories for manufacture of
ethanol during sugar mill season and during off-season day.\

 Fermentation system
 Distillation & Fuel Ethanol
 Effluent treatment system

Following is a brief description of the process:

2.2.2 Fermentation system

The molasses procured from the nearby Sugar factories will be stored in the storage tanks will be supplied to
the fermentor, where it will be diluted partly by water and partly by the effluent produced by the ethanol plant
and then fermented in a continuous fermentation reaction.

2.2.3 Distillation

The fermented wash will be then fed to the distillation column. Here the wash will be distilled to generate the
rectified spirit, which will be sent to the molecular sieve section where rectified spirit will be converted to
ethanol.

The ethanol plant will produce 50000 liters of total spirit per day & 48,000 litres per day ethanol that will be
sold to the oil companies for blending with petroleum products.

Appendix – VII gives detailed process description and flow charts.

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2.2.4 Effluent treatment system

The spent wash of a distillery process is a serious problem by way of threat to the environment. Its volume
from continuous fermentation plant is as large as 7.56 TPH for a distillery of 50 KL/day capacity based on
multi pressure distillation with integrated evaporator system.

The spent wash generated will be converted to BIO-COPOST by mixing it with the pressmud available from
the nearby Sugar factories.

Appended are the details of press mud availability for composting.

Choice of Spent washes Treatment System

In order to fulfil the Pollution Norms and to achieve zero Discharge and at the same time to operate ethanol
plant for the period more than 270 days per annum, YAEL proposes to go for spent wash Bio composting.
YAEL has a good network of farmers who are willing to buy Press mud bio-compost from the factory for
their agricultural land.

With effective utilization of such a technology big hurdle of spent wash disposal will be solved and
distilleries will become zero effluent discharging unit.

Refer Appendix – X for processes available and their merits and demerits for effluent treatment through
composting.

2.2.5 Condensate Polishing Unit

The condensate polishing unit is also envisaged to take care of spentlees, cooling tower blow down, washing
and process condensate from evaporation plant. After treatment all the stream at CPU, water can be recycled
to process and as cooling tower make up.

2.3 Requirement of Molasses:

The requirement of in –house molasses to run the ethanol plant for at least 270 days as per SDF norm is
55,080 MT. YAEL will procure the required molasses from the surrounding stand alone sugar factories.

2.3.1 Use of A Grade molasses:

The entire process & advantages of Ethanol production by A Grade molasses route for meeting the shortfall
in the molasses quantity, is explained as below.

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 There is practically no change in the manufacturing process for Ethanol production, only the source
of molasses is both from low purity molasses available from C curing of the sugar process and from
diversion of required quantity of A Grade molasses.
 Flexibility for starting & stopping within no time gap, as per the market position for Sugar or Ethanol
 Improvement in sugar quality thereby increasing revenue
 Reduction in steam consumption, resulting in additional coal saving.
 Possibility of storage of A Grade molasses, in the same final molasses storage tanks

Requirement of Molasses & A Grade molasses for 270 days

1 Final Molasses required for proposed 50 KLPD Ethanol 54000


plant for 270 days ( 50000/245 x 270), MT
2 A-grade molasses production from Nearby sugar plant @ 55080
4.5% on cane for 160 days. i.e. (5000 x 160 x 4-5 %), MT
3 Recovery of ethanol from Final molasses, Lits/MT as per 245 to 250
SDF norms
4 Conversion Factor = Sucrose to Alcohol Factor x 1000 / 245-250
Alcohol Specific Gravity = (0.5111 x 1000 /0.794) = 644
Fermentation efficiency = 90% Distillation efficiency =
98.5% Dehydration efficiency = 99.6% Alcohol Strength
= 99.8%

2.3.2 Molasses balance:

The total requirement of molasses for the 270 days operation of the proposed ethanol plant at optimum level
of operation will be around 55080 MT. YAEL will procure all the required molasses form nearby sugar
factories.

The installed capacity and capacity utilization levels for ethanol plant and respective annual requirement of
molasses have been shown in the following table:

Projected
Sr. No. Particulars 2016-17 2017-18 2018-19 2019-20 2019-20
1 Installed Capacity 150 150 150 150 150
of Ethanol Plant, IN
LACS LTRS

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2 Production of 105 113 120 128 135


ethanol IN LACS
LTRS
2 Capacity Utilization 70 75 80 85 90
in %
3 Requirement of 42000 45200 48000 51200 54000
Molasses for 50
KLPD Ethanol
Plant in MT
4 Number of plant 210 226 240 256 270
working days in a
year

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CHAPTER – 3

SITE DETAILS AND INFRASTRUCTURE

3.1 Project Site, Key Features

3.1.1 Site Location

 Village – Nani Paniyali( Near Shetrunje Dam)


 Taluka- Palitana
 District - Bhavnagar
 Nearest Taluka - Palitana, 10 Kms
 Nearest Water Source- Shetrunje River & Kharo River staranji dam reservoir

The proposed site is ideal for the proposed ethanol project, due to following reasons:
Required land is available at the project site and is owned by YAEL

The site is easily accessible by road in road itself

The site is located at Village – Nani Paniyali, Taluka- Palitana, District Bhavnagar, Gujarat, which has very
good ground water availability and is near to the perennial source of water.

The cane availability and potential in the command area is excellent and will ensure sustained cane
availability.

The plant will operate on own & procured molasses

3.1.2 Infrastructure

The site has easy access to latest communication and other social infrastructure facilities, including
telecommunication, medical & health facilities, commercial infrastructure, etc.
The process steam & power required at 3.5 kg/cm2 for the proposed ethanol plant which will be met through
its own boiler so far steam is concerned and Power from the Government power grid.

3.1.3 Manpower

The skilled manpower required for operation of ethanol plant are being appointed. YAEL is in process of
appointing required manpower for fuel ethanol plant and has already appointed key top management
positions for the purpose.

3.1.4 Effluent Disposal


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Due care will be taken in design, implementation and operation of the captioned project for satisfactory
disposal and effective utilization of plant effluents, waste water and colony waste water. Scientific treatment
will be given to ensure that waste water from all sources needs the norms stipulated by the Gujarat State
Pollution Control Board.

The waste water after process of (Bio methanization) will be taken to the process of Bio – Composting
through the required stages of its existing lagoons and Bio Compost yard.

In order to fulfill the Pollution Norms and to achieve zero Discharge and at the same time to operate ethanol
plant for the period more than 270 days per annum,

YAEL proposes to go for spentwash treatment through Bio metanization and bio composting.

With effective utilization of such a technology big hurdle of spent wash disposal will be solved and
distilleries will become zero effluent discharge unit.

3.2 Raw Materials

3.2.1 Raw Materials for Fuel Ethanol Plant

3.2.2 The total requirement of molasses for the 270 days operation of the proposed ethanol plant at optimum
level of operation will be around 54,000MT. YAEL will procure A grade molasses from nearby sugar
factories.

3.2.3 It is concluded that YAEL can easily generate the required quantity of molasses and procured molasses
from nearby sugar mills to operate plant for 270 days.

3.3 Utilities & Consumables

3.3.1 Water and power are the main utilities required for operating the project. Required water will be drawn
from Shetrunje River & Kharo River staranji dam reservoir.
3.3.2 The consumables required for operation of ethanol plant include, laboratory and chemicals, oils /
lubricants and other, etc.

The consumables indicated above will be available in substantial quantities from nearby Bahvnagar town,
and no difficulty will be envisaged.

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Following consumables are required for production Ethanol

Sr. No. Particular


1 Stores s
2 Spares
3 Effluent Treatment
− Miscellaneous
4 Chemicals Repairing and
Maint.

Detail of Utilities

Sr. No. Name of Utilities


1 Electrici
2 ty Water
3 Steam

3.4 Manpower

The total direct manpower required for the project has been estimated at 54. It is most essential for YAEL to
define the organization structure for the ethanol plant.

It is most essential that the experienced and well qualified manpower is employed right from the project
development / implementation period, through advertisement or through head hunting exercise, particularly
for the top and key positions. Manpower training and skill up-gradation must become an integral part of the
HRD policy.

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CHAPTER – 4

DESIGN BASIS

4.1 Introduction

The design basis & configuration for the fuel ethanol from molasses project has been elaborated in the
following paragraphs.

THE BASIS OF DESIGN

1. 50,000 Lit Per Day Total Spirit


Plant Capacity

47,500 Lit Per Day Rectified Spirit @ 95% v/v


2,500 Lit Per Day Impure Spirit
2.
Product OR

50,000 Lit Per Day Absolute Alcohol

Sugar Cane Molasses

Density 85 Brix
3. Fermentable Sugar 42% w/w
Raw Material
Sludge 8% w/w
Volatile Fatty Acid < 5000 ppm

202 TPD
Fermentation Batch / Continuous
Distillation Multipressure
4.
Process
Dehydration Molecular Sieve Tech.
Biomethanated Spent
wash Evaporator Independent

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Fermentation 89%-90% (VFA <5,000


ppm, for every Increase of
1000 ppm Efficiency drop
5. Efficiency by 1%)
Distillation
98.5%
Dehydration
99.6%

Alcohol % in Fermented
6. 8% - 9% v/v
Wash
a. Feed Flow rate 500 m3/day
b. Initial Conc. 6 % w/w
Biomethanated Spent wash
c. Final Spent Wash 100 m3/day
7. Evaporator – Independent
d. Final Conc. 30 % w/w
Type
e. Water Evaporation 400 m3/day

Utility

a. RS (Distillation) 2.0 Kg/lit of Total Spirit –


Steam – 3.5 Kg/cm2(g) @ 4200 Kg/hr
1. 148OC at Steam
b. Dehydration 0.55 Kg/lit of Total Spirit –
Chest
1150 Kg/hr

Water Requirement
2. With Recycle* 600 m3/day

6 bar (g) with dew point of – 400C dew point dryness.


3. Compressed Air – Except Free from particulate matter, suitable for instruments.

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Boiler

Electricity - 415 V/4 Fermentation, Distillation,


Wire/3 Phase Frequency: Evaporator, Dehydration,
4. 50Hz – Consumed Load Cooling Towers & Air 550 KWh
without Standby motors Compressor

a. Nutrient 1 Kg/KL
b. Biocide 20 ppm
5. Chemical Required c. TRO* (TFM Min 60) 8 Kg/KL
d. Sulphuric Acid 2 - 3 Kg/KL (As Per
Fermenter pH)

BATTERY LIMITS
1. Process

2. Molasses At the Inlet of Day Molasses Tank in Fermentation Section

3. Chemicals At the inlet of respective tanks in Fermentation Section.

Outlet flange of CO2 Scrubber with Vent Pipe at appropriate


4. Carbon Dioxide
position in the Fermentation Section.
5. Sludge and Yeast Sludge Outlet flange of Decanter in Fermentation Section.

6. Raw Spent Wash At the outlet of Preheater in Distillation Section.

7. RS /FA/ IS At the outlet of Safe & Tester in Distillation Section.

8. Fusel Oil At the outlet flange of FO decanter

2. Utility

At the inlet of Steam Chest @ 3.5 Kg/cm2 (g) & 148OC in


1. Steam Distillation Section.
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At the inlet of Steam Chest on Sieve Vaporiser @ 3.5 Kg/cm 2


(g) & 148OC in Dehydration Section.

2. Steam Condensate At the outlet of steam condensate tank in distillation section.

3. Process Water At the inlet of Process Water Header in Respective Section.

4. Soft Water At the inlet of Cooling Tower & Vacuum Pumps.

5. Electricity At the inlet of individual incomer of MCC panel in MCC Room

6. Drain At the outlet of respective equipments.

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CHAPTER – 5

PLANT LAYOUT

5.1 Layout Considerations

5.1.1 Layout design issues

Major layout design issues, which have been considered while developing th plant layout, are as follows:

 Vastu Shastra
 Available land for the project at site location
 Topography of the land and contour limitations
 Area requirements for various plant buildings, storage areas, admin building, miscellaneous areas,
etc.
 Direction / velocities of wind.
 Optimum men and material movement
 Minimum length of high pressure piping
 Minimum lengths of interface systems between the fuel ethanol plant and sugar mill
 Disposal of ash / spent wash

5.1.2 Area requirement & Layout

YAEL plant is spread across 24 acres of land for the proposed fuel ethanol project which is more than
sufficient.

Refer Appendix – III for Proposed plant layout.

5.2 Ash, Effluent & Sewage Disposal

5.2.1 Ash

Annual ash generation from use of slop (effluent) & bagasse for boiler for fuel ethanol manufacture will be
mixed with the press mud or will be sold to brick manufacturers.

5.2.2 Effluent

The proposed scheme for treatment of spent wash will be converted to Bio Compost .Therefore; there will be
zero discharge of effluent.

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5.2.3 Sewage

All sewage will be collected in a common septic tank and discharged as per accepted norms.

5.3 Plant Layout


5.3.1 General

The proposed fuel ethanol plant will located and spread across vast area with close proximity to source or
water.

5.4 Approach & Internal Roads

The site is easily accessible with approach road already existing and thereby not requiring any additional
approach road. Required internal roads for movement of men and material are already constructed within the
plant area.

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CHAPTER – 6

PROJECT PREPAREDNESS AND IMPLEMENTATION

SCHEDULE

NoC’s / Approvals / Permissions

List of NoC’s / Approvals / Permissions required & their status as of June, 2015 is indicated in the following
table:

Project Component / Item Status


of NoC / Approval Completed Under Process Yet to start
General
 Registration of YAEL 

Excise, sales tax, professional 
tax & income tax registrations

PF / ESI registrations licenses 

Consent to Establish from 
MPCB

Consent to Operate from MPCB 

 Environment Clearance from


MoEF, GoI 

NoC from local gram panchayat 

IEM license for ethanol 
(amendment)

Letter of Intent from State 
Excise
 Electrical Inspector approval 

 Factory Inspector approval 

 Boiler Inspector approval 

6.2 Management & Administration

YAEL has already deployed a competent Project Team for developing and implementing this project at
Palitana. The YAEL Board will take a review of progress of work on a monthly basis, to ensure speedy and
successful implementation of this project.

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Technical & Financial Tie Ups

YAEL has the experience and knowhow for adopting the latest technologies. Consultants and experts will be
appointed, as and when required, during the development and implementation of this project. YAEL already
has appointed NMR Technocon., for preparation of DPR.

YAEL will bring in the required equity through internal accruals, as well as provide the negotiated securities
to the bankers and financial institutions. YAEL proposes to approach nationalized banks / Financial
Institutions for availing term loan / working capital facilities. YAEL is looking forward to avail loan from
SDF or Private Investors for the proposed fuel ethanol plant.

YAEL will not face any difficulty for arranging technical and financial tie-ups required for the captioned
project.

Project Management

The project management for the proposed project will be under able leadership of CMD / Directors. The
appointed experts, consultants and YAEL’s existing Ethanol Plant staff will together work in tandem and
develop / implement this project.

Required top-level manpower will be appointed. Project monitoring / management will be almost on daily
basis and as per the final bar chart / implementation schedule, developed after ordering of main plant and
equipment.

Implementation Schedule

6.5 Implementation Schedule

6.5.1 Project Implementation

For implementing this project within the desired time and cost schedules, it is essential to undertake
meticulous planning, right from the conceptual stages. Following aspects of the project implementation will
be crucial:

Effecting timely project development activities, including securing various approvals / NoC’s / permissions
for each component of the project if needed.

Appointment of pre-investment consultants and experts for preparation of DPRs, approaching select FIs /
bankers, rendering required follow up and achieving financial closure, through raising of required equity and
providing necessary securities.

Finalization of mode of project implementation, package route and O&M contracts for individual project

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components, along with strong owner engineering / consultancy team for effective monitoring of the
implementation / commissioning of each component as per the schedule, is recommended. YAEL has
experienced in-house project team for the purpose.

Manpower and resource mobilization at required time and effectively

6.5.2 Project Schedule

The zero date of the project starts from the date of achieving financial closure, expected to complete within 2
to 3 month. The total implementation period is estimated at 6 to 9 months.
The detailed PERT / CPM networks for individual components and overall project will have to be prepared
by the time of achieving the financial closure. Normally the major activities after the financial closure for
each component includes,

 Appointment of owner engineer / consultant, in-house project team and project architect
 Basic engineering & finalizing outline specifications
 Detailed design engineering and specifications
 Preparation of package bids, bidding, bid evaluation, recommendations and contracting for civil,
mechanical, electrical and instrumentation components, as well as BoPs
 Kick off meetings with individual vendors / contractors
 Vendor drawing review and approvals, inspection and expediting and delivery at site
 Site supervision for erection, testing & commissioning
 Bidding, contracting and signing of O&M contracts
 Plant stabilization and development of MIS

Appendix IX gives implementation schedule.

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CHAPTER – 7

ESTIMATED CAPITAL EXPENDITURE

Land & Site Development

YAEL has already has 24 acres of land for the proposed fuel ethanol plant.

The site development expenses is estimated at Rs.25 lakh which include leveling, fencing, gates, internal
roads, green belt development, etc.

Civil Works

The main civil works for the fuel ethanol plant and their estimated costs are indicated in the following table.

(Need to be checked BY MPS)

Item Cost, Rs.


Lakh

Building repair cost along with the land development cost


Repair and various other civil work Main plant building, admin building,
lab, Excise Office, stores 25

Total 25

Based on the actual civil costs incurred for similar capacity fuel ethanol plant and preliminary estimates from
the project architect, the civil estimates have been worked out at Rs.25 lakh, including Architect’s fees. The
appointed architect for the project will work out detailed estimates and civil drawings (based on the inputs
received by the equipment suppliers and labour / material rates at the site location).
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7.3 Equipment

The main items of equipment for the fuel ethanol plant and their estimated erected costs are given in the
following table:

No Description INR Lac

Design, Engineering and supply and Erection of


equipment in Continuous Fermentation ,and Multi
pressure Distillation. Supply of water treatment palnt,
1593
Critical equipment in Biogas Plant.

Total 1593.00

Based on the budgetary offers received from reputed machinery suppliers & possible negotiation margins, the
estimated erected cost of plant and equipment for the proposed fuel ethanol plant including Boiler out at
Rs.1593 lacs.

7.4 Miscellaneous Fixed Assets

The major miscellaneous fixed assets for the fuel ethanol plant, include Office Furniture and Fixtures, Items
out of battery limits such as steam line, water line, molasses line, yard piping, etc, Lab Equipment, etc. The
Misc. fixed assets for fuel ethanol plant accumulate to Rs. 10.00 lakh. As most of the laboratory and office
furniture are available.

7.5 Preliminary & Pre-operative Expenses

The preliminary expenses include expenses for preparation of DPRs / Tender documents, and legal /
administrative expenses.

The pre-operative expenses include establishment charges, Government Clearances, Establishment, Rent,
rates and taxes, Travelling Expenses, Start up expenses including wages & salaries, Interest on Loans,
Mortgage expenses & stamp duty, bankers charges, insurance, etc., Pre-investment, Pre-contract & Post
contract fee, etc.

The total preliminary and pre-operative expenses for the proposed project have been estimated at Rs. 100
lakh.

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7.6 Contingencies

The contingencies have been worked out at 2% of the non-firm items of site development, buildings, plant &
machinery and miscellaneous fixed assets, preoperative expenses.

7.7 Margin Money for Working Capital

The margin money on working capital is calculated @ 35.7% of the working capital requirement which
works out to Rs.10 lcr.

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CHAPTER – 8

FINANCIAL VIABILITY

8.1 Basis & Assumptions

8.1.1 The entire financial analysis of the project has been worked out on a computer, using specific
project feasibility software developed for the purpose.

All the analysis is in terms of cost of project and means of finance (Schedule-A), project
profitability and cost of production (Schedule-B), Debt Service Coverage Ratio (DSCR)
(Schedule-C), Cash Flow Statements (Schedule
- D), Balance Sheet Forecasts (Schedule -E), etc.

8.1.2 Each item of capital cost is based on the estimated erected costs for various equipment
contractors. While calculating the cost of site development
and civil works, the prevailing rates for labour, material, etc have been assumed.

8.1.3 The contingency provision has been made on all non-firm items of the project cost and has
been considered at 2% for each component of the project including preoperative expenses.

8.1.4 The installed capacities and capacity utilisation levels for fuel ethanol plant and respective
annual productions have been shown in the following table:

Item Year
1 2 3 4 5
Installed Capacity-KLPD 50 50 50 50 50
Number of shift/day 3 3 3 3 3

No. of days 210 223 240 256 270

No. of hrs. 24 24 24 24 24

Annual Installed Capacity 10500 11300 12000 12800 13500
Capacity utilization, % 70 75 80 85 90
Net Production Fuel
Ethanol, 10500 11300 12000 12800 13500
KL

8.1.5 Project income is based on the quantities of fuel ethanol sold.

In view of the rate agreed by petroleum companies for sale of fuel ethanol has been
assumed at Rs. 48000 / KL for the all the years.

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8.1.6 The requirement of molasses has been worked out based on the recovery of ethanol @ 270
Ltr/MT of molasses. The own/B-heavy molasses price has been considered at Rs.6000/MT
and the outside molasses purchase price considered at Rs.6200/MT.

8.1.7 The consumables and chemicals for fuel ethanol have been considered as per the norms of
industry & calculated.

8.1.8 The details of requirement of utilities & their costs are provided in the detailed schedules.

8.1.9 The requirement of direct manpower has been estimated based on the equipment / facilities
to be operated in each section of the project. Total manpower requirement has been
estimated at 54 for fuel ethanol plant. Every year 10% increment and 10% benefits have
been evaluated.

8.1.10 Repairs and maintenance costs have been estimated at 1.5% on civil works &
miscellaneous fixed assets and plant equipment.

8.1.11 Other manufacturing expenses include rent, rates and taxes, electricity charges, insurance
charges for fixed assets and stocks, miscellaneous expenses and contingencies.

8.1.12 Administrative overheads include administrative staff salary and expenses like printing and
stationery, postage and telephone, travelling and conveyance, Excise fees and other
expenses.

8.1.13 The repayments of interests and term loans for each component of the project have been
considered based on the means of finance and the terms for debts for each. The term loans
for fuel ethanol plant will be at 14.5 % rate, payable within 3 yearly instalment with one &
half year as moratorium and SDF loan will be at 7% rate payable in 8 equal half yearly
installments with one year as moratorium.

8.1.14 Schedule also provides income tax calculation as per relevant tax laws applicable.

8.1.15 Depreciation has been calculated by following methods and rates

Item of capital cost WDV SLM


Plant & Machinery 18.00 6.34

8.1.16 Preliminary expenses have been written off equally in 5 years.

8.1.17 Based on above assumptions, the detailed project financial analysis for a period of 10 years
have been worked out and are presented in Schedules-A to E

8.1.18 Following items of costs have been classified into variable and fixed components for
arriving at the break-even point.

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Fixed Variable

Utilities 20 80

Direct labour 90 10

Other mfg expenses 80 20

Admin.overheads 80 20

8.2 Cost Summary

Based on the capital cost break up worked out in Chapter 7, the project cost summary for the entire
integrated project is given in the following table (Also refer Schedule A):

Particulars Ethanol Plant


Land and Site Development 0
Buildings 25
Indigenous Plant and Machinery 1593
Miscellaneous Fixed Assets 166
Prelim. & Preoperative Expenses 100
Contingencies 56
Working capital margin 860
Total 2800

8.3 Means of Finance


The proposed means of finance is indicated below. (Refer Schedule – A).

Particulars Ethanol Plant


YAEL Equity / Internal accruals (32%) 603
Bank / F. I. Loan (68%) 2170
Total 2800

8.4 Financial Viability Indicators

8.4.1 Schedules A to J establish results of the project financial analysis, in terms of


total project cost and means of finance, project profitability, debt service
coverage ratio, cash flow statement, balance sheet forecast, analytical and
comparative ratio, breakeven analysis, sensitivity analysis, internal rate of return,
payback period, etc.

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8.4.2 The above ratios establish good financial viability of the project for this funding
pattern and project income from sale of fuel ethanol, as indicated.

8.4.3 The repayment schedule has been tabulated as below:

Particula Amount in
rs lacs
Total Cost Of Machinery 1800 100%
Promoter Contribution 630 35%
Term Loan 1170 65%
Repayment Period 36 Months
Rate Of Interest 14.5%

Interest total for 1st Year 174.25


Interest total for 2nd Year 114.24
Interest total for 3rd Year 43.2

Total Interest 331.69

Repayment 1st Year 326.32


Repayment 2nd Year 386.32
Repayment 3rd Year 457.36

Total Repayment 1170

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CHAPTER – 9

SOCIO-ECONOMIC

AND ENVIRONMENTAL BENEFITS

9.1 The proposed project of YAEL will be a landmark achievement in Palitana District of Gujatrat State. It
will truly become a role model of zero pollution industry by utilizing the Bio-composting waste effluent in in
the most efficient manner for eco-friendly products like fuel ethanol. The sound techno-economic and
commercial viability of this project, coupled with highest efficiency in all aspects of product manufacture.

Establishment of the latest and most efficient technologies adopted for fuel ethanol manufacture, will also
help the Indian sugar industry and equipment manufacturers to grow leaps and bounds, at the national and the
international levels.

9.2 The socio-economic benefits arising out of this project for the local populace will include creation of
direct and indirect jobs and consequent rise in the income levels, associated commercial and social
infrastructure development in the surrounding areas, better environment and higher returns for the cane crop
due to higher yield and cane price.

9.3 At the national and the State levels, the benefits include reduced emissions, increased tax revenues and
reduction in the transportation costs.

9.4 At the project and promoter levels, the captioned project offers excellent opportunities for manufacture of
fuel ethanol and improved returns from trade of emission reductions from the up-coming international
emissions trade market, under the Kyoto Protocol.

9.5 The project will have excellent multiplier effect and will become truly a win-win situation for all the
stakeholders. Thus, the proposed project has substantial socio-economic and environmental benefits at the
local, the State, the Regional and the National levels.

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CHAPTER – 10

CONCLUSIONS & RECOMMENDATIONS

10.1 SWOT Analysis

Strengths (S):

 Availability of land
 Excellent irrigation facilities with ensured cane cultivation and availability on a long term basis
 Availability of basic infrastructure
 Favourable policy regime for Fuel ethanol at the Central Govt. and in Gujarat State, with defined
policies regarding sale of fuel ethanol
 Commitment and vision of the promoters, with forward integration planned right from beginning
 Professional and business like approach of the promoters, with meticulous planning for speedy and
successful implementation and operation
 Good financial viability and technical feasibility of the project at the estimated project capital cost
and prevailing selling prices of fuel ethanol, as well as landed prices of various raw materials and
inputs
 Deployment of latest technologies and equipment
 A very high order of socio-economic and environmental value to the local populace, Gujarat State
and the country.
 IEM from the Ministry of Commerce & Industry, Govt. of India for running 50 KLPD ethanol plant
 All clearance from Pollution department and GPCB to operetta the plant in the location

Weaknesses (W):

 Complexities and higher investment levels of the project. Employment of experienced and
professional teams and consultants, as well as project and equity partners, directors on board will
reduce this weakness.
 Changes in the Govt. policies related to ethanol
 Satisfying the statutory agencies in execution & operating the plant.

Opportunities (O):

 Decrease dependence on sugar margins


 GOI’s 5% mandatory ethanol blending since December 2012, approval to market based pricing &
increased blending ratio from 5% to 10% recently and, thus, having a two to three fold increase in
requirement.
 The unit has flexibility with minimum investment of entering into alternative products like ENA,

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IMFL & CS
 Implementation of the recommendations of Rangarajan Committee by GOI & freeing up the sugar
and ethanol market

Threats (T):

 Cyclic or climatic changes leading to low cane crushing and hence resulting in the under capacity
utilization. Alternate cane varieties shall be incorporated at later date depending upon market
conditions.
 Over dependence of in house raw materials for revenue generation. Alternative, third party vendors
have been identified for molasses requirement.
 Over dependence on marketing of the product to single agency (OMCs), which is influenced by the
policy matters, to be decided by the GOI. However, GOI is committed to fuel ethanol projects and are
to increase the

10.2 Risk Factors

Risk Factors Remarks


Industry Risk The Industry is cyclical and highly regulated. The price of
free sale sugar is directly/indirectly controlled by the govt.
Therefore, the company has been making its operations
integrated, comprising of sugar, cogeneration and ethanol
plant to protect its margins and profitability and avert
cyclicality.
Implementation Risk YAEL has experienced people in its management team.
Keeping in view overall good track record, it is felt that
YAEL has the competence for timely implementation of
project as per the schedule. The new ethanol plant
commissioning shall be implemented on turnkey basis.
The ethanol project being implemented on turnkey basis,
will reasonably assure completion of the project within the
envisaged cost. However, any increase in cost of plant &
machinery shall be met by the internal accruals.
Operating Risk Though the company is procuring new plant for production
and marketing of ethanol. Moreover, the ethanol project is
being implemented on a turnkey basis and will be backed
by suitable clauses in terms of warranty and guarantee.
Though the availability of adequate quantity of molasses is
also dependent on the supplies from neighbouring units,
the company has identified nearby sugar mills from where
molasses can be sourced.
Credit Risk Average DSCR of the ethanol plant project is estimated to
be 2.38, which is satisfactory. YAEL has been regular in
meeting its commitments to FIs/Banks and SDF.

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Financial Risk The company is comfortably placed to infuse its equity


contribution in the project and is awaiting sanction of term
loan from banks. As such, no problem is envisaged
Raw Material Risk YAEL has announced a reasonable remunerative price in
line with the market trend and neighbouring sugar mills.
Also, it is providing services to educate farmers about the
best practices in sugarcane cultivation for improvements in
the yield. The molasses required for the ethanol plant shall
be readily available from the nearby sugar plant. The
Neighbouring sugar mills has already shown willingness to
supply the molasses for meeting the shortfall.
Market Risk/ off take risk/ payment risk The Govt. of India has allowed mixing 5% ethanol in
petrol and has increased of ethanol percentage to 10%,
recently. Since there is need for huge investment to set up
additional required capacity of 96 million litres of ethanol
by 2017, YAEL is not expected to face any problem in
selling the ethanol from proposed project.
Market Risk/ off take risk/ payment risk The Govt. of India has allowed mixing 5% ethanol in
petrol and has increased of ethanol percentage to 10%,
recently. Since there is need for huge investment to set up
additional required capacity of 96 million litres of ethanol
by 2017, YAEL is not expected to face any problem in
selling the ethanol from proposed project.

10.3 Key Management Features

 Appointment of Project Team, required experts and consultants, as well as top level staff - right from
the beginning
 The factory is spread across 24 acres of land.
 Posses all the permissions / NOC’s / approvals quickly and achieving the financial closure at the
earliest.
 Selection of right technology and equipment suppliers for fuel ethanol plant.
 Effective project management for timely execution
 Cane development in the command area and abundance of molasses availability from neighbouring
sugar factories

10.4 Conclusions & Recommendations

The captioned fuel ethanol project is technically feasible and commercially viable. The project is
recommended to financial institutions for financing term and working capital loans.
The forward linkages of this project / as well as socio-economic and environment benefits to the local
population make this a win-win project to all the stakeholders.

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SCHEDULE A

Cost of Project & Means of Finance

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YEAST ALCO ENZYMES LIMITED

MEANS OF FINANCE
(Rs. In Crore)
Particulars Amount Rs.

Promoter Contribution 6.30


Fll/Banks 11.70
Fll/Banks ( Working Capital) 10.00

Total 28.00

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SCHEDULE B

Estimated Cost of Production & Profitability Statement

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YEAST ALCO ENZYMES LTD.


COST OF PRODUCTION AND PROFIT AND LOSS ACCOUNT

16-17 17-18 18-19 19-20 20-21


Head / Financial Year Projected Projected Projected Projected Projected

Installed Capacity IN LACS LTRS 150 150 150 150 150

Capacity Utilization (%) 70 75 80 85 90

Production IN LACS LTRS 105 113 120 128 135

Sales Realisation (A) 5085.15 5448.38 5811.60 6174.83 6538.05

Cost of Production
Molasses and Other Chemicals Consumed 3181.27 3408.50 3635.74 3862.97 4090.20
Steam Coal and Electricity Charges 164.76 176.53 188.30 200.06 211.83
Stores and Spares Expenses 55.94 59.93 63.93 67.92 71.92
Water Expenses 110.35 118.23 126.11 133.99 141.88
Labour and Wages Expenses 26.44 28.33 30.22 32.11 34.00

Total Cost of Production (B) 3,538.76 3,791.52 4,044.29 4,297.06 4,549.83

Administrative Expenses

Salary Expenses (Admin) 150.00 165.00 181.50 199.65 219.62

Other Admin Expenses 105.00 110.25 115.76 121.55 127.63

Finance Expenses Note 1 145.00 291.86 257.60 218.04 172.33

Depreciation 214.00 214.00 214.00 214.00 214.00

Contingencies Charges Sales and Mkt Exp 47.25 50.85 54.00 57.60 60.75
Payment Of Difference in Excise Duty and
VAT 122.85 132.21 140.40 149.76 157.95

Pre operative and Preliminary Exp W/off - 20.00 20.00 20.00 20.00

Total Administrative Expenses ( C) 784.10 984.17 983.26 980.60 972.28

Total Expenses (B) + ( C) = (D) 4,322.86 4,775.69 5,027.56 5,277.66 5,522.11

Net Profit Before Tax (A-D) 762.29 672.68 784.04 897.17 1015.94
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Profit Before Tax and Depreciation 976.29 886.68 998.04 1111.17 1229.94

Depreciation as per Income Tax 270.00 230.00 195.00 166.00 141.00


16-17 17-18 18-19 19-20 20-21
Head / Financial Year Projected Projected Projected Projected Projected

Profit Before Tax 706.29 656.68 803.04 945.17 1088.94

Taxation @ 33.99% 240.07 223.21 272.95 321.26 370.13

Profit after Tax 522.22 449.47 511.09 575.91 645.81


Cash accruals 736.22 663.47 725.09 789.91 859.81
Profit Per litre 4.97 4.00 4.26 4.52 4.78

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SCHEDULE C

Debt Service Coverage Ratio

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STATEMENT OF DEBT SERVICE COVRAGE RATIO

(Rs. In Lacs)
Head / Financial Year 16-17 17-18 18-19 19-20 20-21 Total

Promoter Contribution to P&M 630.00 30.00 0.00 0.00 0.00 0.00

FII/Banks 2,170.00
Additional Promoter Contribution 0 0 0
Total promoters
contribution/FII/Banks 2800 30 0 0 0 2830.00

CASH ACCRUALS(from Operation) 736.22 663.47 725.09 789.91 859.81 3774.51


Total Cash Accrual 3536.22 693.47 725.09 789.91 859.81 6604.51
Repayment of OTS (Sales Tax) 159.22 68.24 0.00 0.00 0.00 227.46
Repayment TO GICB 42.39 0.00 0.00 0.00 0.00 42.39
Repayment Of Unsecured Creditors 0.00 0.00 0.00 117.69 235.38 353.07
Repayment to FII/Banks 0.00 232.60 268.66 310.32 358.42 1170.00
Plant and Machinery Purchased 1800.00 0.00 0.00 0.00 0.00 1800.00
Total Repayment 2001.61 300.84 268.66 428.01 593.80 1792.92
Interest on OTS (Sales Tax) 13.31 3.07 0.00 0.00 0.00 16.38
Interest On FII/Banks 145.00 291.86 257.60 218.04 172.33 1084.83

Total Net Operating Income 3694.53 988.41 982.69 1007.94 1032.14 7705.72
Total Debt Service 2159.92 595.77 526.26 646.05 766.13 2894.13
DSCR 1.7104961 1.65904 1.8673 1.56017 1.34721 2.66253

Average Debt Service Coverage Ratio = Cash Accruals + Int. On OTS / Int. on OTS + Repayments of
TL

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SCHEDULE D

Cash Flow Statement

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YEAST ALCO ENZYMES LTD.

CASH FLOW STATEMENT


Particulars 16-17 17-18 18-19 19-20 20-21
Sources Of funds

Net Profit Before Tax 762.29 672.68 784.04 897.17 1015.94

Depreciation 214.00 214.00 214.00 214.00 214.00

Promoters/co-promoters contribution/
Banks and Financial Institution 2800.00 30.00 0.00 0.00 0.00

Total 3776.29 916.68 998.04 1111.17 1229.94


Applications of Funds

Payment of OTS to Sales Tax 159.22 68.24 0.00 0.00 0.00

Payment to GICB 42.39 0.00 0.00 0.00 0.00

Plant and Machinery 1800.00 0.00 0.00 0.00 0.00

Payment To Sales tax Of Interest 13.31 3.07 0.00 0.00 0.00

Payment to Unsecured creditors @30%


of principal 0.00 0.00 0.00 117.69 235.38

Additional w/c 1039.07 88.32 73.44 73.00 72.50

Payment of statutory dues (Income Tax) 240.07 223.21 272.95 321.26 370.13

Repayment To FII/Banks 0.00 232.60 268.66 310.32 358.42

Interest On FII/Banks Borrowing 145.00 291.86 257.60 218.04 172.33

Total 3439.05 907.30 872.66 1040.31 1208.76

Opening Balance 0.00 337.24 346.62 472.01 542.87


Surplus/(Deficit) 337.24 9.38 125.39 70.86 21.18
Balance 337.24 346.62 472.01 542.87 564.05

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SCHEDULE E

Balance Sheets Forecast

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YEAST ALCO ENZYMES LTD

PROJECTED BALANCE SHEETS


(Rs. In Lacs)
Head / Financial Year 2016 2016
Ended on 31st March Provisional Restructured 2017 2018 2019 2020 2021
Share Capital 45.66 45.66 45.66 250.00 250.00 250.00 250.00

Promoters Contribution 0.00 171.30 801.30 626.96 626.96 626.96 626.96

Acumulated Bal. P&L -617.27 -262.08 260.14 709.62 1220.71 1796.61 2442.43

Reserves & Surpluses 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Secured Loans :
GICB+ Sales Tax+SBI CC 297.02 272.98 71.37 3.13 3.13 3.13 3.13

Unsecured Creditors 777.59 353.07 393.46 436.92 483.07 414.61 231.15

Secured Loans

Term Loan 0.00 0 0 937.4 668.74 358.42 0

CC Facility (W C) 1039.07 1039.07 1039.07 1039.07 1039.07

Unsecured Loans : Old 244.49 73.19 73.19 73.19 73.19 73.19 73.19

Total Liabilities 747.49 654.12 2684.19 4076.29 4364.87 4561.99 4665.93

Assets
Net Fixed Assets 287.50 287.50 1869.86 1655.86 1441.86 1227.86 1013.86
.
Investments 0.33 0.33 0.33 0.33 0.33 0.33 0.33

Preliminary and Preoperative


Exp 100 80 60 40 20

Current Assets 459.66 366.29 714.00 2340.10 2862.68 3293.80 3631.74


Total Assets 747.49 654.12 2684.19 4076.29 4364.87 4561.99 4665.93

Net Worth -571.61 -45.12 1107.10 1586.58 2097.67 2673.57 3319.39

Current Liabilities 1432.53 1475.99 1522.14 1453.68 1270.22

Current Ratio 0.50 1.59 1.88 2.27 2.86

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SCHEDULE F

Breakeven Analysis

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YEAST ALCO ENZYMES LTD.

Break Even Analysis


Installed Capicity : 150 Lacs Liters
Utilised Capacity : 105 Lacs Liters
(Rs. in lacs)
Particulars Amount Rs.

Fixed Expenditure
Salary Expenses 150.00
Other Admin Expenses 105.00
Finance Expenses 145.00
Depreciation 214.00
Contingencies Charges 47.25
Difference in Tax Payment 122.85
Total Fixed Cost 784.10

Variable Expenditure
Molasses and Other Chemicals Consumed 3181.27
Steam Coal and Electricity Charges 164.76
Stores and Spares Expenses 55.94
Water Expenses 110.35
Labour and Wages Expenses 26.44
Total Variable Cost 3538.76

Sales 5085.15

Contribution 1546.39

Production in Liters (In Lacs) 105.00

Contirbution per Liter 14.73

Break even point in Liters (In lacs) 53.24

Break even % Utilisation 35.49

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SCHEDULE G

Sensitivity Analysis

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YEAST ALCO ENZYMES LTD.


Sensitivity Analysis
Actual Result as Per Proposal
(Rs. lacs)
Particulars 2016-17 2017-18 2018-19 2019-20 2020-21
Total Sales 5085.15 5448.38 5811.60 6174.83 6538.05
Raw Material Consumption 3181.27 3408.50 3635.74 3862.97 4090.20
Profit Before Tax 762.29 672.68 784.04 897.17 1015.94
Profit After Tax 522.22 449.47 511.09 575.91 645.81
Cash Accruals 736.22 663.47 725.09 789.91 859.81
Promoters contribution 630.00 30.00 0.00 0.00 0.00
Total cash accruals 1366.22 693.47 725.09 789.91 859.81
Total Interest 158.31 294.93 257.60 218.04 172.33
Total repayment 2001.61 300.84 268.66 428.01 593.80
Average DSCR

Fixed Sales Price vs. 10% Increase in RM Cost


(Rs. lacs)
Particulars 1 2 3 4 5
Total Sales 5085.15 5448.38 5811.60 6174.83 6538.05
Raw Material Consumption 3499.40 3749.35 3999.31 4249.27 4499.22
Profit Before Tax 444.17 331.83 420.47 510.87 606.92
Profit After Tax 312.23 224.48 271.10 320.91 375.82
Cash Accruals 526.23 438.48 485.10 534.91 589.82
Promoters contribution 630.00 30.00 0.00 0.00 0.00
Total cash accruals 1156.23 468.48 485.10 534.91 589.82
Average DSCR

Fixed RM cost vs. 10% decrease in selling price (Rs. lacs)

Particulars 1 2 3 4 5
Total Sales 4576.64 4903.54 5230.44 5557.34 5884.25
Raw Material Consumption 3181.27 3408.50 3635.74 3862.97 4090.20
Profit Before Tax 253.78 127.84 202.88 279.69 362.14
Profit After Tax 186.55 89.83 127.46 168.31 214.24
Cash Accruals 400.55 303.83 341.46 382.31 428.24
Promoters contribution 630.00 30.00 0.00 0.00 0.00
Total cash accruals 1030.55 333.83 341.46 382.31 428.24

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SCHEDULE H

Payback Period

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YEAST ALCO ENZYMES LTD.

Payback Period

Particular of repayment of term Loan and Calculation of Interest

Particula Amount in
rs lacs
Total Cost Of Machinery 1800 100%
Promoter Contribution 630 35%
Term Loan 1170 65%
Repayment Period 36 Months
Rate Of Interest 14.5%

Interest total for 1st Year 174.25


Interest total for 2nd Year 114.24
Interest total for 3rd Year 43.2

Total Interest 331.69

Repayment 1st Year 326.32


Repayment 2nd Year 386.32
Repayment 3rd Year 457.36

Total Repayment 1170

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SCHEDULE I

Molasses Production/Sales/ Stock details

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Appendix-I

Company Incorporation Certificate

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Appendix-II

Promoter Details of YAEL

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Appendix-III

Plant layout

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Appendix-IV

Audited Annual report provides the Promoter Details of YAEL along with the share
holding.

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Appendix V

IEM license for ethanol plant

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Appendix – VI

Detailed Land Documents

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Appendix – VII

Detailed process description and flow charts.

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Appendix VIII

Details of the technical and commercial offer

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PROJECT PROPOSAL

FOR

50,000 LITRES PER DAY

MODERN DISTILLERY PROJECT

For

YEAST ALCO ENZYMES LTD

DAM SITE PALITHANA DIST BHAVNAGAR

GUJARATH

BY

PROENERGY RESOURCES PVT LTD

4th Floor, Farena Corporate Park, Near Magarpatta City,


Kharadi-Mundhwa Bypass Road, Hadapsar
Pune: 411028, Maharastra, India

020-30440905/ 33/ 25

marketing@proenergyresources.in
July 032014

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 111 of 142

CONTENTS
Annexure I - Design Basis
Annexure II - Plant performance parameters
Annexure III - Product Specifications
Annexure IV - Requirement of Raw material and Specification
Annexure V - Bought out makes
Annexure VI - List of Engineering Documents
Annexure VII - Equipment list section wise
Annexure VIII - Battery limits
Annexure IX - List of Exclusion & scope matrix
Annexure X - Commercial

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 112 of 142

TECHNICAL PROPOSAL

ANNEXURE -I

Design Basis

1. Capacity of the plant : 50,000 litres per day totalAlcohol. 95%v/v


OR
47,500 litres per dayRectified spirit Industrial grade 95.5%
v/v
&2,500 Litres / day Impurel Alcohol
at94.5 % v/v

2. Raw material : Cane Molasses with 40 % FS Min.


3. Water source : River water after suitable treatment.
4. Steam : Dry saturated at 3.5 kg/cm2 g
5. Electricity source : 410 +/- 5% volts, 50 Hz and 3 Phase
From Power Grid

6. Waste water treatment : Existing facility to be used

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 113 of 142

ANNEXURE – II :
PLANT PERFORMANCE PARAMETERS

Technical Performance

Process

1 Plant capacity 50,000 litres / day total 95.00 % v/v alcohol.

2 Main products 47,500 litres / day 95.50 % v/vof Rectified Spirit

PLUS
2500 Litres / day Impure Alcohol at94.5 % v/v

3 Technology Continuous Fermentation


Multi Pressure Distillation

4 Efficiency Continuous Fermentation : 90.0 %


Multi Pressure Distillation : 98.5 %
Spent Wash Generation Ratio : 1 : 11 ( At 8.5 % v/v
Alcoholin FW)

265 -267 litres 96 % v/v alcohol per Ton molasses at 45 % Fermentable


5 Alcohol recovery Sugars.
figures

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 114 of 142

6 Steam consumption Rectified Spirit Production – 2.1 kg / Lit

7 Electricity usage 400 KWh-Fermentation and distillation


100 KWh-Cooling towers
( Detail power consumption will be given at the time of detail engineering along with
motor load List )

8 Process Water 450 m3 per day for fermentation


consumption 75 m3 per day soft water for distillation.
150 m3 per day soft water for cooling tower make-up without recycle

9 Chemical 1. Sulphuric Acid – 0.25 kg per KL


consumption 2. Defoam agent – 0.25 kg per KL
3. Nutrients (fertilisers DAP)–1.25 kg per KL
4. Biocides – 0.5 kg per KL.
5. Descaling agents – Negligible

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 115 of 142

ANNEXURE – III
PRODUCT SEPCIFICATIONS

A) RECTIFIED SPIRIT SPECIFICATIONS

RS shall conform to the following quality specifications:-

Ethanol Content % v/v at 15.6oC - Minimum 95.50


Degrees Over Proof - Minimum 67.20
FuseOil - Maximum 400 PPM
Aldéhyde Content - Maximum 0.002 Gm/100 ml.
P.P. Time - Minimum 10 Minutes.

Other quality parameters shall conform to the requirements of Grade - I of I.S. 323-1959.

The impure spirit shall have a minimum strength of 95 % v/v and shall conform to the requirements of Grade
- 2 spirit of IS 323-1959 for all other parameters.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 116 of 142

ANNEXURE - IV
Requirement of Raw Material & Specification

This includes Feed stock , chemicals, Enzymes, yeast and its specifications

1. MOLASSES

Molasses should be free from caramalization products and known inhibitory elements of yeast
metabolism i.e. lead, Arsenic polyelectrolytes etc. or micro organisms producing side products.
Such available molasses will have:-

(a) Fermentable sugars : Min 40% (w/w)


(b) F/N Ratio : Min 0.9 ***
(c) Sulphated ash : Max 15 % (w/w)
(d) Volatile Acids : Normal - 5000 to 8,000 ppm
(e) Bacterial content : Max. 10 cfu/gm
(f) Caramel content : Max 0.3 Absorbance at 375 nm.

*** : Ratio of Fermentable sugars to Non-Fermentable matters.

2. PROCESS WATER / SEALING / CLEANING / TESTING WATER

Process water should be filtered and shall not contain any E. COLI or COLIFORM bacteria with total
germs count being limited to 60 Nos / ml. The chloride content shall be less than 250 ppm.

3 COOLING WATER FOR CIRCULATION

Cooling water at a temperature of 30 Deg. C max.with a total hardness of 5 ppm maximum & Total
Dissolved solids of 300 ppm max.

4 SULPHURIC ACID

Concentrated, Commercial Grade, Composition as below value in % W/W


(a) Sulphuric Acid : 98 MIN
(b) Lead : 0.001 MAX
(c) Arsenic : 0.0001 MAX
(d) Iron : 0.03 MAX
(e) Moisture :2 MAX

5 UREA

In the form of prills or pellets with total Nitrogen not less than 46% W/W.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 117 of 142

6 DIAMMONIUM PHOSPHATE ( D A P )

In the form of granules.Composition as below. Values in % w/w


(a) P205 : 50 MIN
(b) Nitrogen : 20 MIN
(c) Arsenic : 0.0001 MAX.
(d) Iron : 0.01 MAX.
(e) Lead : 0.001 MAX

7 ANTIFOAM

Turkey red oil. Composition as below, Value in % w/w


(a) Degree of sulphatation : 6 MIN
(b) Total alkali (KOH) : 3 MAX.
(c) Total fatty matter : 60 MIN
(d) Total Ash : 8 MIN
(e) pH : 6.5 - 7.5

8 STEAM FOR PASTEURISATION


Dry, saturated should be provided at the inlet of steam header in fermentation plant. and the pressure
required shall be 3.5 kg/cm2 (g) at the steam header.

9 STEAM FOR DISTILLATION


Dry, saturated should be provided at the inlet of steam header in the plant and the pressure required
shall be 3.5 kg/cm2 (g) for distillation & for Anhydrous section at steam header. The max variation
in the steam pressure shall not be more than +/- 0.1 kg/cm2.

10 YEAST

The initial culture tubes will be provided by ProEnergyalternatively baker’s dry yeast can be also be
used.

11 Process & make up Water

450 m3 per day for fermentation


75 m3 per day soft waterfor distillation.
150 m3 per day soft water for cooling tower make-up without recycle
12 Power

410 +/- 5% volts, 50 Hz and 3 Phase

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 118 of 142

ANNEXURE – V
Bought out Make
All the bought out equipment shall confirm to the following manufacture’s brand.

1) Gear Pump Tushaco / Johnson


2) Centrifugal Pump Johnson /Kirloskar/KSB/microfinish
3) Blower TMVT / PPI / Vindi Vac/ Mzada
4) PHE Alfa Laval / Tranter / GEA / Funke
5) Motor Bharat bijlee / Alstom / CromptionGreeves
6) PLC Mitsubishi / Siemens / ABB / Equivalent
7) Flow meter E & H / Emersion / ABB
8) Magnetic flow meter E & H / Emersion / ABB
9) Rotameter Eureka
10) Solenoid valve Avcon / Rotex
11) OFT Eureka/ Bernoulli’s/Scientific
12) DPT Rosemount / SMAR/ Yokogava
13) Actuated Valves CRANE / Delvel
14) Control Valve Samson /Fischner /Masollion/Demla
15) Electrical Cable Polycab / Primecab
16) CT Paharpur/equivalent
17) Vacuum Pump PPI / VINDI /ROOTS/ TMVT
18) Air Compressors Atlas Copco ( non lubricated )/ Chicago Pneumatics/
19) Load Cell Nova / Avery
20) Butterfly Crane / Delval / Kore / 4S/Tyco
21) Gate Valve 4S / Mikon
22) On- Off Valves Tyco /CRANE
23) DP transmitter yokogawa with Smart type & Hart Protocol.
24) Mechnical seal Sealol / Flowserve
25) Cables Finolex / CCI
26) All pumps with mechanical seals.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 119 of 142

ANNEXURE – VI
List of Engineering Documents

The following engineering documents will be submitted .

 Detailed time schedule in the form of bar chart for the design, manufacture, delivery period with
critical milestone activities.
 Piping and instrumentation diagrams for sections showing all related equipments
 start-up and shutdown operations for the plant
 Overall plant elevation and plot plan
 Loaddata for the plant/ tankages and auxiliaries and above ground mounted equipments and supports
 Distillation section elevation and plan
 fermentation, storage plant layout
 Chemical dosing system arrangement and piping layout drawings
 Overall dimensional drawing of all distillation columns and equipments
 Fans & Pumps performance test reports
 Plant process operation and maintenance manual including catalogues, bought out items; start up
procedures and O&M manuals for bought out items

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 120 of 142

Electrical:

 Single Line Diagram


 Physical layout of electrical system showing all panels, motors etc.
 Cable tray and trench layout.
 Cable schedule & interconnection charts.
 Earthing schedule and layouts.
 Lightening protection drawings.
 Data sheets and characteristic curves for all electrical motors
 Test certificates for panels, critical components and electric motors.
 Operation and maintenance manuals for all electrical equipments.

Instrumentation and Controls:

 Specifications and drawings including supplier's recommended layout of equipments in field and
control room
 PLC configuration diagram
 I/O list of PLC
 Control Panel Facility
 Spare parts list (Commissioning and Maintenance)
 List of tools and tackles
 List of calibration and diagnostic equipments
 List of consumables
 Power consumption estimate
 Environmental conditions for equipment operation
 Consolidated bill of material including field instruments and erection hardware.
 Technical catalogue/ literature of the model of the PLC components and accessories offered.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
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ANNEXURE VII
EQUIPMENT LIST

AREA 1

TECHNICAL SPECIFICATION FOR FERMENTATION

NO DESCRIPTION SPECIFICATIONS
1 MOLASSES DAY TANK
1 no.
Quantity
200 m3 X 1 no. ( Mild Steel )
Specification Thickness : - Bottom plate – 6 mm
Shell – 6 mm Roof – 6 mm

2 MOLASSES TRANSFER PUMP


Capacity Ton/hr 10
Quantity (No) 1 W + 1 SB
Head (MWC) 35
Material of construction CASING : CI / CS ; IMPELLER : GEAR
Type Gear
3 MOLASSES WEIGHING SYSTEM ALONG WITH WEIGHED MOLASSES TANK and
receiving tank
1 no.
Quantity
Load cell type weighing system with scale
Specification
(Weighed Molasses receiving tank of 25 M3)
Thickness :-Bottom plate – 6 mm
Shell – 6 mm, 6 mm, 6 mm Roof – 5 mm
Load cell type

4 MOLASSES PUMP WITH GEAR BOX ( VFD Type ) & MOTOR


Capacity Ton/hr 10
Quantity (No) 1 W + 1 SB
Head (MWC) 35
Material of construction CASING :CI / CS ; IMPELLER : GEAR
Type Gear
5 PROCESS MOLASSES MAGNETIC FLOW METER
2 nos.
Quantity
Suitable for 60 KL FEREMNTATION
Specification

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
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6 BIO-CULTURE DEVELOPMENT SECTION CONSISTING OF SERIES OF VESSELS


WITH INCREASING VOLUMES
5 nos.
Quantity
Vertical / Cylindrical
Type
SS304
Material of construction
0.08 m3
Capacity a) Vessel – I 0.80 m3
4.00 m3
b) Vessel – II 25 m3 X 2 nos
c) Vessel – III
d) Vessel – IV&V
With PHE for cooling
7 CONTINUOUS MIXED BIO-REACTORS (FERMENTORS)
3 nos.
Quantity
Vertical / Cylindrical
Type
SS 304
Material of construction
Capacity 350 m3

8 BUFFER TANK
1 no.
Quantity
Vertical / Cylindrical
Type
SS- 304
Material of construction
Capacity 100 m3

9
DISTILLATION FEED PUMP
Capacity m3/hr 30
Quantity (No) 1 W + 1 SB
Material of construction Casing and impeller SS316
Type Centrifugal
10
CONTINUOUS MOLASSES BROTH MIXER
5 Nos.
Quantity
Static
Type
SS304
Material of construction

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
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11 FERMENTED MASH COOLERS PLATE HEAT EXCHANGERS


4nos
Quantity
Plate Heat Exchanger ( PHE )
Type
Plate thickness shall be 0.6 mm
Material of construction
12
FERMENTED WASH RECIRCULATION PUMPS
3 +1 non-operating stand by
Quantity
Casing and impeller SS316
Material of construction
Type Centrifugal
13 AIR SPARGING ASSEMBLY FOR BIO-CULTURE VESSELS & FERMENTORS
5 sets
Quantity
Suitable for each equipment
Type
SS304
Material of construction
14
AIR FILTER
Quantity 1 no.
Type HEPA
15 AIR BLOWERS (100 % stand by to be provided)
Quantity (No) 1 W + 1 SB
Type Water ring type blower
Material of construction / Make CI with SS internals
16 NUTRIENT TANK WITH AGITATOR
1 no.
Quantity
Vertical / Cylindrical
Type
SS304
Material of construction
Capacity 1 m3
17
NUTRIENT PUMP
Capacity m3/hr 1
Quantity (No) 1 W + 1 SB
Head (MWC) 15
Material of construction CI

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
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18 CO2 Scrubber
Dia - 750 mm, No of trays – 6 nos.
200 mm tray spacing, 3 mm thickness
Material – SS 304, Quantity – 2 no
19 WATER HEADER
Material – MSQuantity – 1 no
20 AIR HEADER
Material – MSQuantity – 1 no
21 SAFETY SYSTEM FOR FERMENTER
Type Cylindrical / vertical
Diameter:- 250 mm
Height:- 300 mm Material – SS 304
Quantity – 4 Nos.
22 CIP SOLUTION TANK
Volume:- 10 M3 Material :- SS 316
Type:- Vertical / Cylindrical
Quantity – 3 no
23 CIP SOLUTION PUMP
Capacity m3/hr 20
Quantity (No) 1 W + 1 SB
Head (MWC) 30
24 CONTINUOUS STABILISER TANKS
1 no.
Quantity
Vertical / Cylindrical
Type
SS 304
Material of construction
Capacity 200 m3
Bottom cone – 6 mm
Shell – 6 mm, 6 mm,
Top cone – 5 mm
25 Sludge Settling Tank MOC SS-304
Capacity:- 40 m3, Qty:- 1 No.
26 SLUDGE TRANSFER PUMP
Capacity m3/hr 2
Quantity (No) 1 W + 1 SB
Head (MWC) 15
Material of construction Casing and impeller SS316
Type Centrifugal
27 SLUDGE TROUGH
Volume:- 1 M3 Material :- SS 304
Type:- Vertical / Cylindrical, Quantity – 1 no
28 PIPING AND VALVE, INSTRUMENTATIONS – LOT

AREA 2

TECHNICAL SPECIFICATION FOR DISTILLATION

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 125 of 142

COLUMNS

NO DESCRIPTION SPECIFICATIONS
1 PRIMARY AND DEGASSER COLUMN
Dia - 2100 mm / 1200 mm
Material – SS 304
Quantity – 1 no Insulated
No. of trays 20 & 6
2 RECTIFIER CUM EXHAUST COLUMN

Dia - 1700 mm
Material –SS 304
With hot insulation , Quantity – 1 no
No. of trays 68
3 ALDEHYDE COLUMN

Dia - 900 mm
Material –SS 304
With hot insulation , Quantity – 1 no
No. of trays 50
4 DEFUSEL COLUMN

Dia - 800 mm
Material –SS 304
With hot insulation, Quantity – 1 no
No. of trays 45

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 126 of 142

REBOILERS

NO DESCRIPTION SPECIFICATIONS

1 PRIMARY COLUMN REBOILER


Type - Shell & tube
Material – SS 304
Quantity – 2 Nos.
HTA- 220 M2 2 No
2 RECTIFIER REBOILER
Type - Shell & Tube
Material –SS 304
Quantity – 1 No
3 ALDEHYDE REBOILER
Type - Shell & tube
Material – SS 304 ,
Quantity – 1 no
4 DEFUSEL COLUMN REBOILER
Type - Shell & Tube
Material –SS 304
Quantity – 1 No

CONDENSORS

NO DESCRIPTION SPECIFICATIONS

1 RECTIFIER VENT CONDENSER

Type - Shell & tube


Material – SS 304
Qty. – 2 no

2 ALDEHYDE COLUMN CONDENSER

Type - Shell & Tube


Material –SS 304
Quantity – 2 No

3 DEFUSEL VENT CONDENSER

Type - Shell & Tube


Material –SS 304
Quantity – 2 No

OTHER EQUIPMENT

NO DESCRIPTION SPECIFICATIONS

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 127 of 142

1 RECTIFIER COLUMN BOTTOM PHE


Type - Plate Type
Material – SS 316 Plates with EPDM
gaskets
Quantity – 1 + 1 no
2 MASH PRE HEATER

Type - Shell & Tube


Material –SS 304
Quantity – 1 No
3 MAIN PRODUCT COOLERS
Type - Shell & Tube
Material –SS 304
Quantity – 1 No
4 IMPURE SPIRIT COOLERS
Type - Shell & Tube
Material –SS 304
Quantity – 1 No
5 FUSEL SEPARATORS
Type - Vertical/ cylindrical
Material – SS 304
Quantity – 2 Nos.
6 FUSEL COOLERS
Type - Shell & Tube
Material – SS 304 ,
Quantity – 2 nos
7 GAS LIQUID SEPARATORS
Type - Cylindrical Type
Material – SS 304
Quantity – 1 no
8 MASH PREHEATER USING SPENT WASH
Type - Plate Type
Material – SS 316 Plates with EPDM
gaskets
Quantity – 1 + 1 no

9 REFLUX & PROCESS TANKS

Type - Cylindrical Type


Material – SS 304
Quantity – 5 no
10 CONDENSATE TANK
Type - Cylindrical Type
Material – MS
Quantity – 1 no
11 TRANSFER PUMP
QUANTITY 9+9 No.
Casing and impeller SS304

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 128 of 142

12 VACUUM PUMPS
Capacity:- 400 NM3/hr
Type - Water ring type
Material – With SS Internals.
Quantity – 1 + 1 nos
13 VENT SCRUBBER
Type - Column type
Tray :- Sieve type ,
Diameter :- 600 MM ,
Material – SS 304 Qty – 1 no
14 WATER AND STEAM HEADER
Type:- Cylindrical
Material - carbon steel
Qty – 3 no
15 PLC with 100% REDUNDANCY
16 AIR COMPRESSOR MAKE: ATLAS COPCO
( with Non lubricating screw type) CAPACITY: 70 CFM Qty : 2No.
17 PIPING AND VALVE, ELECTRICAL AND INSTRUMENTS

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
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AREA 03:- INSTRUMENTATION

1. FERMENTATION SECTION

TEMPERATURE TRANSMITTER- 12 Nos

FLOW TRANSMITTER
1 Fermented wash feed
2 Mag. fow trans. for ferm. 1
3 Mag. fow trans. for ferm. 2,3

FLOW INDICATOR- 12 No
WEIGHT TRANSMITTER
1 Weight of molasses
LEVEL TRANSMITTER
1 FERMENTERS -3 NOS.
CONTROL VALVE
1 FW. Feed FCV
PRESSURE GUAGES ; AS PER REQUIREMENT
TEMP.GAUGE: 5 no.
LEVEL.GAUGE : 5 No.

DISTILLATION SECTION

LEVEL TRANSMITTER : 10 No.


LEVEL CONTROL VALVE : 10 No
PRESSURE TRANSMITTER : 8 No

FLOW TRANSMITTER : 10 No

FLOW INDICATOR : 10 No

PRESSURE GUAGES : 30 No

FLOW CONTROL VALVE : 3 Loops

TEMPERATURE TRANSMITTER : 20 No

Safe and testers. : 2 Nos.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 130 of 142

AREA 4

TECHNICAL SPECIFICATION FOR COOLING TOWER

1) COOLING TOWER FOR FERMENTATION

A. DESIGN CONDITIONS:

1) Flow rate capacity : 400 m3 per hour

2) Inlet temperature : 30 deg C

3) Outlet temperature : 32 deg C

4) Design wet bulb temperature : 28 deg C average

B. COOLING TOWER SPECIFICATIONS & TYPE:

1) Type : Induced Draft Double Entry Cross


flow

C. MECHANICAL EQUIPMENT:

1) No. of fans & cells : 2 cells & 2 fans

D. GEAR REDUCERS :

1) Quantity : 2 nos.

2) Type of gears : Spiral bevel

E. PUMPS AND MOTOR: (VFD TO BE PROVIDED )

1) Quantity : 400 M3 / Hr. 1 W + 1 SB .

2) Current Characteristics : 415 volts, 3 phase 50Hz

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 131 of 142

2) COOLING TOWER FOR DISILLATION

A. DESIGN CONDITIONS:

1) Flow rate capacity : 350 m3 per hour

2) Inlet temperature : 40 deg C

3) Outlet temperature : 32 deg C

4) Design wet bulb temperature : 28 deg C average

B. COOLING TOWER SPECIFICATIONS & TYPE:

1) Type : Induced Draft Cross flow

C. MECHANICAL EQUIPMENT:

1) No.of fans & cells : 2 cells & 2 fans

D. GEAR REDUCERS :

1) Quantity : 2 nos.

2) Type of gears : Spiral bevel

E. PUMPS AND MOTOR: (VFD TO BE PROVIDED )

1) Quantity : 300 M3 / hr 2Nos ( 1 W+ 1 SB).

2) Current Characteristics : 415 volts, 3 phase 50 Hz

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 132 of 142

AREA 5
Water Treatment Plant – suitable for 50KL Distillery capacity

AREA 6

Biogas plant – Supply of Critical equipment as below

A) CentralAgitator- 1 no
B) Laterral Agitators – 3 no
C) Lamella clarifier packplates
D) Pumps for spent wash circulation, feed and sludge recycling

Molasses Bulk Storage tank-Only pumps to be supplied 2 no.alongwith piping upto day tank

AREA 7

Steam Boiler 8 TPH

On coal
Steam piping from Boiler to Plant

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 133 of 142

ANNEXURE VIII:

BATTERY LIMITS

1. Molasses : At the Inlet of day storage tank

2. Process water : At the inlet of header in Fermentation section

3. Soft water : At the inlet of header in distillation section

4. Chemicals : Inlet of respective dosing tanks in fermentation system.

Outlet flange of CO2 scrubber in fermentation system.( at a higher


5. CO2 :
elevation)
Rectified Spirit
6. : At the outlet Flange of safe and taster .

7. Technical Alcohol : Outlet flange of safe &taster .

8. Fusel oil : Outlet flange of the Decanter

9. Instrument Air : Inlet of air compressor.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 134 of 142

ANNEXURE IX :-

LIST OF EXCLUSION

1. Dismantling of any existing structure, demolishing existing building, levelling of plot for civil
construction. Contour Plan and trial pits for soil data.

2. All Civil work including foundation bolts for all foundations.

3. All structural work.

4. Design and supply of main raw water storage tank over ground / underground and water pumps and
piping facility up to the Battery Limits.

5. Design and supply of Substation, transformer, DG set, and electrical cabling upto the Battery Limits.

6. Design and supply of main storage and transfer of raw material i.e. raw molasses upto Battery Limits.

7. Design and supply of Storage and transfer of nutrients, antifoam, sulphuric acid upto Battery Limits.

8. Storage disposal and treatment of other output streams such as sludge, floor-washing streams etc.

9. Office equipment, furniture and plant communication equipment.

10. Applications and License fees to various statutory Government Authorities for obtaining various
clearances permissions, No objection certificates etc.

11. Any other item /activity not specifically mentioned in our scope of work and equipment list.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 135 of 142

F. SCOPE MATRIX

Design & Erection &


Sr. No. DESCRIPTION Supply
Engineering Commissioning
PROENERG PROENERG
1. Plant and Machinery. PROENERGY
Y Y
PROENERG PROENERG
2. Electrical Related to Process Plant PROENERGY
Y Y
Instruments Related to Process Plant. Ie PROENERG PROENERG
3. PROENERGY
fermentation & Distillation Y Y
PROENERG PROENERG
4. Air Compressor with Dryer PROENERGY
Y Y
Cooling Tower pumps with motors and PROENERG PROENERG
5. PROENERGY
piping. Y Y
Structure related to Proenergy Scope of PROENERG
6. CLIENT CLIENT
Supply. Y
All Civil & structure for Plant and PROENERG
7. CLIENT CLIENT
machinery. Y
PROENERG
8. PRDS with de-super heater and PRDS water CLIENT CLIENT
Y
PROENERG PROENERG
9. Electrical for Plant lighting. PROENERGY
Y Y
PROENERG PROENERG
10. Insulation and cladding of the Equipment. PROENERGY
Y Y
11. Electrical for Yard lighting. CLIENT CLIENT CLIENT
PROENERG PROENERG
12. Laboratory equipment and chemicals PROENERGY
Y Y
PROENERG
13. Fire fighting equipment and system CLIENT CLIENT
Y
14. Land development, landscaping, gardening CLIENT CLIENT CLIENT
15. Spent wash lagoon, holding tanks CLIENT CLIENT CLIENT
16. Unloading of material at site CLIENT
17. Storage of equipment CLIENT
18. Personal protective Equipment CLIENT
PROENERG
19. Earthing Equipment and Earthing pits
CLIENT
Y CLIENT
Water during Erection & commissioning. CLIENT
20. (Free of charge.)
Electricity during Erection & commissioning CLIENT
21. (Free of charge.)
Lodging for Proenergy Engineers, Project CLIENT
22. Manager & Sr. Managers.
23. Crane for Erection. PROENERGY
24. Local Conveyance for Proenergy Team. CLIENT

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 136 of 142

ANNEXURE X: -

COMMERCIAL
PRICE

No Description INR Lac


Design, Engineering and supply and Erection of
equipment in Continuous Fermentation ,and
Multi pressure Distillation. Supply of water
1) treatment palnt, Critical equipment in Biogas 1196
Plant.

Steam boiler 8 TPH cap


Total 1196.00

Price in Words:ELEVEN HUNDREDNINETY SIX LAC

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery
NMR Technocon Page 137 of 142

Note:

Taxes and Duties: will be extra at actual.


Transportation: Included
Insurance: Included .
Civil and structural Work is in Client Scope.

Payment Schedule:

 15 % advance payment along with the order.


 75% payment against supply of plant & Machinery on prorate basis as per Mutually agreed terms .
 5 % against mechanical completion.
 5 % against commissioning & performance trial for 72 Hours.

A. TERMS AND CONDITIONS

DEFINATIONS
In this document, the words and phrases listed shall have the meaning specified against each word or phrase.
Words imparting singular shall include plural and vice versa and words imparting the masculine gender shall
include feminine gender and words imparting persons shall include bodies corporate.

A) The “BUYER” means “ CLIENT “.

B) The “SELLER” means “PROENERGY RESOURCES PVT.LTD

PRICE BASIS

a) The prices quoted are based on FOR site , including all packing, forwarding,
b) Taxes, duties Levies and other charges shall be charged to BUYER account at actual as per rates
prevailing at the time of dispatch.

INSURANCE

The prices quoted are Inclusive of Transit insurance, erection insurance, storage insurance charges. The
goods will have to be insured by SELLER from the time it leaves from SELLER’s works/vendors works till the
time the equipment/plant is commissioned and handed over to BUYER. In the event of any damage during
transit, storage, erection, the claim process shall be handled by BUYER. No payment for the equipment /
plant will be withheld by BUYER and SELLER shall make the rectification or replacement of equipment only
after separate purchase order that work is placed on SELLER. Any delay on this account shall be considered a
force majeure and an appropriate extension to the delivery period shall be agreed upon.

DELIVERY PERIOD

Total equipment / plant offered can be dispatched from SELLER work in period of Six to Eight month time
from the date of receipt of technically/commercially clear order, amendments if any, advance payment,
whichever is later.

VALIDITY

SELLER’S offer/quotation is valid for a period 30 days from the date of this quotation and thereafter it is
subject to our confirmation in writing.

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SELLER RESPONSIBILITIES

SELLER shall deliver the Plant and execute the services in accordance with the agreed time schedule. The
plant supplied by SELLER shall be free from defects in design, material and workmanship. SELLER shall
provide the documentation for operation, maintenance and repair of the plant wherever applicable.

BUYER RESPONSIBILITIES

BUYER shall obtain necessary licenses, permits and approvals for installation of the plant, execution and
completion of the services. BUYER shall give unhindered access to the site and provide all tools, utilities and
connections and operating personnel required for proper installation of the plant, start up and tests of the plant
at site.

BUYER shall supply all items and materials not specified in SELLER quotation or under SELLER
responsibility but which are necessary for SELLER to comply with obligations under the order/contract.

@@@@@@@

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Appendix IX

Implementation Schedule

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Zero level of the project schedule can be assumed "sanction of loan" The entire schedule can be
categorized in given below fragments.

1. Loan Sanction – This would be zero level to invite quotes from various Plant and machineries
suppliers and prepare the comparative chart from various suppliers

Dead line of this aspect would be sanction of the loan and initiation of the disbursal.

Time Schedule – One month from the date of bankable DPR submission

2. Release of Purchase Order & work orders – This would be the stage after disbursement of
loan to release PO/WO to relevant suppliers/vendors. Approved of the suppliers/vendors
would be on the basis FCF on L-1 basis mainly.

Time schedule – Two weeks from the date of the loan disbursement

3. Project work – By the time delivery of plant and machineries starts, all the works like civil
woks related to the project buildings, readiness of foundation of all the raw material
tanks/area, Finished goods storage tanks and receiver vats , Boiler house boiler foundation
and related foundation works.

Time schedule – 2-3 months

4. Erection of the Plant & machineries – After completion of the above schedule number 3
instantly erection of the plant and machineries would be undertaken.

Simultaneously procurement of Raw materials like Molasses and Press mud etc would be carried on.
Lifting schedule process initiation with the relevant agencies of finsed goods would also be planned
in this time frame only.

Time schedule – 30 days

5. Trial Runs – This stage would be immediately after completion of above schedule no-4.

Time Schedule – Two weeks

6. Commercial Production – After trial runs of water trial etc the commercial production would be
planned to be taken for execution.

Time Schedule – One week

TOTAL TIME FRAME OF THE PROJECT EXECUTION WOULD

AROUND 6-7 MONTHS at the max

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Appendix X

Processes available for Effluent Treatment – Merits and


Demerits

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Advantages

1. This is the only process which serves the purpose of real ZLD (zero liquid discharge) to
support and enhance the feasibility of organic farming.
2. Various processes like RO, MEE, SPRAY DRIERS, and BOILERS etc are only the mean of volume
reduction and phase change of the distillery waste water.
3. Composting of Molasses based Distillery Industrial waste water and sugar factory waste –
Press mud is the best mean to maintain Green ecology of environment which serves the
wide gap of organic manure availability for its demand and supply.
4. One of best Organic manure can be made out of the above two waste products by using
selected microbial culture and process of composting with suitable mechanical equipments.
5. Spent wash composting would give the organic manure which is very rich in NPK value,
Organic carbon, micronutrients etc which can be further enriched with Potash and
Phosphorous to make it substitute of Urea, Potash and DAP like chemical fertilizers in
gradual fashion which has in present era has become a curse and compulsion for our farmers
to use and use of these chemical fertilizers is every moment becoming root cause of various
ailments in the human society inclusive of diseases like cancer.

Disadvantage

1. Large area of cemented platform is needed for seepage proof composting of the spent wash.
2. All the lagoons need to be fitted with LDP film to cover the risk of effluent getting absorbed by
ground and mix with the ground water.
3. Prior to monsoon, all the compost yard needs to emptied or covered by the film so that the effluent
mixed with the Press mud is not washed away with rain water and enter the ground.
4. Regular check of composting yard for crack in the concrete and lagoon for the tear in LDP film in
the lagoons.

Yeast Alco Enzymes ltd. Palithana Gujrat 50 KLPD Molasses Based Distillery

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