Setting Up of 800 TPD Modern Rice Mill at Thiruvarur District DPR Moder Sg3FMs2 2

Detailed Project Report on setting up of 500 TPD Modern Rice Mill
at Thiruvarur District under PPP mode

.
Proposed By
Tamil Nadu Civil Supplies Corporation (TNCSC)

No:12, Thambusamy Road, Kilpauk,
Chennai – 600 010
Prepared By
ITCOT Limited
Joint Venture of IFCI, SIPCOT, TIIC, SIDCO and Banks
50 A, Greams Road, Chennai 600 006
Tel: 044-42936800, 28290324, Fax: 044-28293512
Contents
EXECUTIVE SUMMARY .........................................................................I
1 PREAMBLE ................................................................................. 1
2 ABOUT TNCSC ............................................................................. 3
2.1 FUNCTIONS OF TNCSC ................................................................... 3
2.2 ORGANISATION CHART OF TNCSC ........................................................ 4
2.3 ACTIVITIES AND SERVICES ................................................................. 5
2.3.1 Paddy Procurement ............................................................. 5
2.3.2 Rice Milling ...................................................................... 6
2.3.3 Other services ................................................................... 7
2.4 INFRASTRUCTURE AND ASSETS ............................................................ 8
3 MARKET ASSESSMENT.................................................................... 9
3.1 RICE – GLOBAL SCENARIO ................................................................. 9
3.2 INDIAN RICE MARKET ................................................................... 10
3.2.1 Production scenario .......................................................... 10
3.2.2 Exports ......................................................................... 11
3.2.3 Consumption ................................................................... 12
3.2.4 Existing gaps in Rice Mill industry ......................................... 13
3.3 PROFIT GAPS DUE TO POST HARVEST LOSSES ............................................. 14
3.4 TAMIL NADU SCENARIO ................................................................. 14
3.3.1 Rice seasons of Tamil Nadu ................................................. 15
3.3.2 Production ..................................................................... 16
3.5 MARKET ASPECTS ...................................................................... 17
3.5.1 Rice Milling products ......................................................... 17
4 STRATEGIC NEED ASSESSMENT AND PROJECT SCOPING ........................ 21
4.1 GEOGRAPHIC LOCATION ................................................................ 21
4.2 DISTRICT ADMINISTRATION ............................................................. 21
4.3 CLIMATE AND RAINFALL ................................................................. 22
4.4 WATER RESOURCES ..................................................................... 22
4.5 AGRICULTURE .......................................................................... 23
4.6 NETWORK LINKAGES .................................................................... 23
4.7 DEMAND ASSESSMENT IN THE DISTRICT .................................................. 24
4.7.1 PADDY PROCUREMENT ............................................................... 24
4.7.2 STORAGE GODOWNS ................................................................. 31
4.7.3 MILLING ............................................................................. 33
4.8 NEED FOR NEW RICE MILL IN THE DISTRICT ............................................. 37
4.9 PROJECT SCOPING ..................................................................... 42
5 TECHNICAL ASPECTS................................................................... 44
5.1 SITE PLAN ............................................................................. 44
5.2 LAND .................................................................................. 44
5.3 BUILDING AND CIVIL WORKS ............................................................ 45
5.4 PLANT AND MACHINERY ................................................................ 45
5.5 FACILITIES PROPOSED IN DPC .......................................................... 46
CONVEYOR SYSTEM ....................................................................... 47
DESTONER & PRE-CLEANER ............................................................... 47
MOBILE PADDY TESTING LAB ............................................................... 47
WEIGHING SCALE ......................................................................... 47
PNEUMATIC PUMP ......................................................................... 47
10 MT TRUCK............................................................................ 47
5.6 FACILITIES PROPOSED IN THE RICE MILL ................................................. 47
5.5.1 Post-Harvest Dryer ........................................................... 47
5.5.2 Silo Storage system ........................................................... 49
5.5.3 SCADA System ................................................................. 50
5.5.4 Power Co-generation system ................................................ 53
5.7 INSTALLED CAPACITY ................................................................... 56
5.8 PRODUCTS AND BY-PRODUCTS .......................................................... 56
5.9 PROCESS AND TECHNOLOGY ............................................................ 57
5.10 CAPACITY BALANCING .................................................................. 61
5.11 RAW MATERIAL ......................................................................... 62
5.12 CONSUMABLES ......................................................................... 62
5.13 STEAM AND FUEL ....................................................................... 62
5.14 POWER ................................................................................ 63
5.15 WATER ................................................................................ 63
5.16 EFFLUENT TREATMENT PLANT .......................................................... 65
5.17 MANPOWER ............................................................................ 67
5.18 STATUTORY APPROVALS ................................................................ 68
5.19 TENTATIVE IMPLEMENTATION PLAN ...................................................... 70
6 ENVIRONMENT IMPACT ASSESSMENT ............................................... 71
6.1. SOLID WASTE DISPOSAL AND MANAGEMENT .............................................. 72
6.2. WATER EFFLUENT AND MANAGEMENT ................................................... 73
6.3. AIR POLLUTION AND MANAGEMENT ...................................................... 74
7 LEGAL FRAMEWORK ................................................................... 77
7.1. PUBLIC PRIVATE PARTNERSHIP MODEL – AN OVERVIEW ................................... 77
7.1.1 Design, Finance, Build, Own, Operate (DFBOO) model ................. 78
7.2. ALLOCATION OF RESPONSIBILITIES ....................................................... 78
7.3. PROCESS FLOW FOR PPP PROJECT ...................................................... 79
8 RISK ASSESSMENT ...................................................................... 81
9 FINANCIAL ASPECTS ................................................................... 83
10 FINANCIAL VIABILITY ................................................................ 86
11 CONCLUSION .......................................................................... 90
FINANCIAL STATEMENTS
1 Cost of project and Means of Finance........................................... 92
2 Preliminary and Pre-operative expenses........................................ 93
3 Cost of Production and Profitability............................................. 94
4 Assumptions for Cost of Production and Profitability......................... 98
5 Assessment of working capital.................................................... 100
6 Estimation of power cost.......................................................... 101
7 Manpower Requirement & Estimation of cost.................................. 103
8 Interest Estimation and Repayment Schedule for Term Loan............... 104
9 Estimation of Depreciation....................................................... 106
10 Calculation of Income tax........................................................ 107
11 Projected cash flow statement................................................... 109
12 Projected Balance Sheet.......................................................... 111
13 Calculation of Debt-Service-Coverage-Ratio................................... 113
14 Estimation of Break-Even Point................................................... 114
Estimation of Net Present Value and Internal Rate of 115
15
Return.................
16 Estimation of Equity IRR........................................................... 116
17 Estimation of BCR and ERR........................................................ 117
ANNEXURES
I Cost of Building & Civil work......................................................
II Master Layout........................................................................
EXECUTIVE SUMMARY
Executive Summary
Executive Summary
Project Tamil Nadu Civil Supplies Corporation, popularly known as “TNCSC”, a State-
Background owned Public-Sector Company, is involved in procurement of paddy directly
from the farmers through Direct Purchase Centres (DPCs) under decentralized
procurement system, hulling and supply of rice to Public Distribution System
(PDS).
TNCSC procures around 40,00,000 MT of paddy annually and hulls it through

its own Rice Mills and hulling agents. Since harvesting season quite often
encounters with cyclones accompanied by heavy rains, mainly in Kuruvai
season, the moisture level of paddy is high requiring post-harvest drying
facility. However, the Rice Mills of TNCSC as well as hulling agents are not
equipped with proper drying and storage facilities. This results in large scale
spoilage of paddy besides deterioration of quality of rice and by products.
In this context, the Hon’ble Minister for Food and Civil Supplies & Consumer
Protection and Price Control, Government of Tamil Nadu during demands for
grants in the State Assembly has announced that TNCSC will establish 5
Modern Rice Mills under PPP mode in order to save the paddy from spoilage
and improve the quality of rice to be supplied to PDS. Accordingly, TNCSC
propose to setup a 500 TPD integrated modern Rice Mill with post-harvest
dryer, silo storage, green power co-generation, etc. in Thiruvarur district
under PPP mode.
ITCOT had prepared the DPR on the same and submitted the draft report to
TNCSC. However, during the presentation of report, Additional Chief
Secretary to Government, Co-operation, Food & Consumer Protection
Department has advised to peck the capacity at 500 TPD along with post-
harvest dryer and silo facilities instead of 800 TPD. Accordingly, the report
has been revised and prepared based on the details provided by TNCSC,
estimates, collection of secondary information on market/internet, etc.
Need for new Harvesting season of paddy quite often encounters with cyclones and heavy
Rice Mill in the rains, mainly in Kuruvai season. The existing Rice Mills of TNCSC as well as
District the hulling agents do not have proper drying and storage system, which
results in increase of moisture content of paddy beyond the prescribed limits
of 17 %. High moisture leads to large-scale spoilage besides deterioration of
quality of rice and by-products.
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Over the past few years, there has been steady increase in quantity of paddy
coming to DPCs due to attractive minimum support price. However, parallel
increase in storage facilities and milling capacity of paddy did not happen.
This led to storage of the paddy in the open field and increase in quantity of
unprocessed paddy.
For instance, as per TNCSC estimates, the unprocessed during the year 2021
in Thiruvarur district due to lack of proper storage and milling facility is
estimated below:
S.No. Particulars Total

Lakh MT/
A. Paddy procured through DPCs 8.56
B. Paddy processed through TNCSC owned Rice Mill 0.58
C. Paddy processed through private hullers @ 60% 4.40
utilization
D. Quantity of paddy stored in TNCSC godowns 1.19
E. Less: Previous year stock @30% of storage capacity 0.83
F. Quantity of paddy left unprocessed by TNCSC 2.75
F=A-(B+C+E)
In order to address the above issues, it is considered essential to establish an

integrated Rice Mills with proper storage and milling facilities viz. post-
harvest dryer and silos.
Project scoping The project is proposed to be implemented on Design, Finance, Build, Own &
Operate (DFBOO) model under Public Private Partnership (PPP) mode to
overcome the limitations in present in the existing mechanism as well as to
improve the quality of the rice and by-products.
It is envisaged that the selected private player will purchase the required
land for the project and will be responsible for establishment, operation &
maintenance of the Rice Mill.
The following activities, which are presently handled by TNCSC will be

transferred to the private player:
At DPC
 Collection of paddy from farmer
 Bagging, Weighing, stitching and stacking
 Loading and transportation to godown
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At Godown
 Unloading and stacking paddy bags
 Weighing paddy bags
 Loading and transportation to Modern Rice Mill (MRM)
At MRM
 Unloading paddy bags at Rice Mill
 Bagging, weighing, stitching and stacking of rice bags
 Loading of rice bags to truck
Facilities For collection of paddy from farmers to weighing and transferring to trucks at
proposed in DPC DPCs, the following facilities will be made available during procurement days
by the Private Player:
 Conveyor system
 Destoner & Pre-cleaner
 Mobile paddy testing lab
 Weighing scale
 Pneumatic pump
 10 MT Truck
Facilities The Rice Mill will be fully integrated with the following facilities:
proposed in
 Post-harvest dryer of capacity 600 MT/Day
Rice Mill
 Bulk carriers to move the paddy from Direct Purchase Centers (DPCs)
to the Rice Mill
 Silos to store 60,000 MT of paddy
 Parboiling capacity: 25 MT/hour
 Milling of 500 MT/Day of paddy
 Automatic rice packing system
 2.0 MW Husk-based co-generation power plant
 Rice storage godown to store 3500 MT of rice
 Conveyors to move the rice bags from godown to lorries
Land An extent of 20 acres is required for setting up of 500 MT Modern Rice Mill.
The private player will purchase the required land for the project in
Thiruvarur district. The choice of location shall be given to the private
player with a condition that the location should be within the District.
Building and The major buildings of the proposed Rice Mill include co-gen power plant,
civil works Mill unit building, rice storage godown, admin building, etc. The details are
given hereunder:
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S. No. Description Area Building
(Sq.ft.) Type
1 Raw Paddy Cleaning Section
Paddy unloading point 8665 PEB
Pre-cleaning tower 605 PEB
Pre-drying area 9160 PEB
2 Dryer & Parboiling Section
Unloading section 9472 PEB
Dryer section & Gel Cook Section 12917 PEB
3 Milling & Packing Section 37674 PEB
4 Boiler & Turbine Section 24262 PEB
5 Transformer and Power house section 6041 PEB
6 Truck drivers waiting area 4478 PEB
7 Final product godown 26910 PEB
8 Paddy sampling lab 646 RCC
9 Weighbridge cabin 258 RCC
10 Administrative Building 10259 RCC
11 Workers’ Hostel 3988 RCC
12 Dining Area 5247 RCC
Plant and The major machineries of the Rice Mill include post-harvest dryer, Silos,
Machinery Conveyors, parboiling & drying unit machineries, Mill machineries, automatic
weighing, bagging & stitching machineries. The utilities include boiler, co-
generation power plant, transformer and DG sets. The list is given
hereunder:
DPC infrastructure
1 Conveyor
2 Destoner and Pre-cleaner
3 Moisture meter, Weighing Scale & Mobile Platform
4 Pneumatic pump
5 Closed top for paddy tipper
6 10 MT vehicle (12-wheeler)
Post-Harvest Dryer and Parboiling section
1 Raw Paddy Cleaner
2 Batch Parboiling Tanks
3 Dried Paddy Silos/ Storage Bins
4 Hot water tank
5 Water Circulation line, IBR Steam Line & Water feeding line
6 Additional Elevator & Erection items
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7 Raw Paddy Storage Bins & Elevators in Silo Cleaning Section
Silo
1 Grains Silos – 3000 MT x 20 (Total: 60000 MT)
2 Grain Chillers
Milling Section
1 Rice Mill Machines and Colour Sorter
2 Rice Mill Machine Accessories
3 Electrical panel & Cabling
4 Elevators, Fabrication, Erection & Installation
5 Compressor, Receiver Tank & Air Dryer
6 Airline and Water Line for Milling Section
7 Packing machine, stitching machine & loading conveyor
Boiler (Co-gen)
15 MT/hr, 45 Kg/cm2 High Pressure Boiler & Turbine 2 MW
1 Generator
Chimney, Wet Bottom System, Valves, Steam Pipeline,
2 Insulation, Cooling Tower, Electrical Panel & Cables
Miscellaneous fixed assets
1 Bore well, Drainage, ETP, STP & Weighbridge
Installed The hulling capacity of the Rice Mill is fixed at 500 MT of paddy per day.
capacity of the Considering 300 working days per annum and 20 hours per day of operation,
Mill the installed hulling capacity at 100% utilization would be 1,50,000 MT per
annum.
Product & By- At 100% capacity utilization, rice & by-products produced from the proposed
Products Mill and their utilization/value addition are given below:
Product/ By- Production Utilization/Value Addition

Products (TPA)
Rice 102000 Rice produced in the Mill would be of
superior quality. Rice Will be given to
the Family Card holders through
Public Distribution System (PDS).
Husk 33000 The Husk produced will be used as
fuel for boiler to generate steam.
Balance quantity will be sold in
market
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Bran 10500 Bran, the valuable by-product from
the Rice, contains 20-22% Oil. The
company would sell the bran to Oil
extractors. The defatted bran is used
as raw material by poultry feed
making plants.
Broken rice 3000 The broken rice is used in rice flour
Mills, distilleries, etc and will be sold
in the market.
Raw material Paddy is the raw material for the proposed unit. At 100% capacity utilization,
the plant can process 500 MT of paddy per day.
TNCSC undertakes procurement of paddy directly from the farmers at

Minimum Support Price through Direct Purchase Centres (DPC).At present,
the combined procurement of paddy by TNCSC through 476 DPCs are
functioning in Thiruvarur district, which handle 8-10 lakh MT per annum.
The entire requirement of Paddy for Milling by MRM will be obtained from the
DPCs functioning in the command area by the private player.
As the DPCs are under the ambit of TNCSC, no problem is envisaged in supply
of required quantity of paddy.
Consumables Consumables and packing required for the Rice Mill unit include Gunny bags,
Yarn for stitching, Stencilling ink, Rubber rolls, Rubber brakes etc.
All the consumables are locally available. As such, no difficulty is envisaged

in procuring consumables for the proposed Mill.
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Steam & Fuel The steam requirement for each section is envisaged as under:
S. Description Steam Qty (nos.) Total steam

No. requirement requirement
(kg/hr) Kg/hr
1. Post-harvest 2100 4 8400
dryer
2. Gel cook station 195 8 1560
3. Process dryer 1050 3 3150
4. Hydration tanks 210 6 1260
5. Hot water tanks 150 3 450
Total steam requirement 14820
Considering the above, the capacity of the boiler is fixed at 15 TPH from
@30o C.
In order to generate 1 TPH of steam, 200 kgs of Husk is required. Accordingly,

to generate 15 MT of steam, 3000 kgs (i.e.,) 3 MT of Husk is required.
Considering, the boiler runs for 20 hrs a day, the Husk requirement is
estimated at 60 MT per day, which is proposed to be met from in-house
generation.
The in-house generation of Husk per day from the Mill is as below:
Quantity hulled per day 500 MT

Husk yield 22%
Husk available 110 MT
Power
S. No Description Connected load
(KW)
1. Boiler including turbine generator 350
2. Silo section 500
3. Dryer and Parboiling section 300
4. Milling section including compressor 800
5. General lightings 50
Total 2000
Say 2.0 MW
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It is proposed to have a Rice Husk based co-generation plant of 2 MW
capacity. Considering a Plant Load factor (PLF) of 75%, 1.50 MW of power
could be generated from co-generation plant and the balance would be
availed from TANGEDCO.
Water The total water requirement for operation and potable purposes is estimated
at 625 KLD. It includes boiler makeup water requirement of 150 KLD (after
recovery through condensate recovery system), 430 KLD for paddy processing
and 45 KLD for domestic consumption. Out of the total requirement, about
200 KLD will be recycled water and 475 KLD would be fresh water.
Effluent Effluent Treatment Plant (ETP) is proposed as per the requirements of Tamil
Treatment plant Nadu Pollution Control Board (TNPCB) to treat the effluent discharged during
the process of soaking.
The liquid effluent after absorption during soaking process is estimated to be

260 KLD. Accordingly, capacity of the ETP is fixed at 260 KLD. The technology
is based on combination of both anaerobic and aerobic treatment, which is
considered most suitable for Rice Mill effluent.
The treated water would be used for flushing & gardening purposes.
Pollution To address the pollution that would arise from the intended project, the
control following pollution control measures are planned:
measures
 Solid waste (Husk) – The Husk generated will be used as fuel for the
boiler. The surplus will be sold for fuel purposes.
 Liquid waste (Effluent water) - The wastewater generated during the
paddy soaking process will be treated using effluent treatment plant and
will be reused.
 Air Emission (Fly ash) – Chimney with a wet bottom system will be used
for arresting the fly ash emissions. Additionally, wet scrubber will be
added to ensure effective removal of fly ash.
As a result, the proposed Rice Mill would be free from both air and water
pollution as per the TNPCB norms.
Manpower Since the project is to be implemented under PPP model, the private player
is responsible for the deployment of manpower. The manpower requirement
for the proposed facility is envisaged as under:
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For DPC
S. No Particulars Manpower requirement
Per DPC (Nos.) For 25 DPCs
(Nos.)
1. Supervisor 1 25
2. Lab technicians 1 25
3. Asst. lab technicians 2 50
4. Weighment 2 50
5. Helpers 2 50
Total 8 200
For Mill
S. No Particulars Manpower
requirement (Nos.)
1. General Manager 1
2. Manager (Technical, Accounts) 2
3. Manager (Admin, Marketing) 2
4. Shift Engineers 3
5. Maintenance Engineers 3
6. Operators 42
7. QC Lab technician 3
8. Asst. QC lab technician 3
9. Electrician 3
10. Helpers 60
11. Admin staff 5
12. Store Keeper 3
13. Security 15
Total 145
The district boasts disciplined labour force and good work culture. As such,
the private player shall face no difficulty in sourcing the adequate work force
for operating and managing the Mill.
Statutory The following statutory approvals are required for the proposed Rice Mill:
Compliances
Before Commencement of the project
 Panchayat Union approval
 DTCP approval for layout and Factory Buildings
 Consent to establish from TNPCB
 Consent to establish from Tamil Nadu Fire & Rescue Services
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 Approval from Inspector of Boilers
 Approval from DISH
 Approval from Electrical Inspectorate
 Approval from Health Department
After Commencement of the project

 Consent to operate from TNPCB
 Consent to operate from Tamil Nadu Fire & Rescue Services
Project Cost The total project cost works out to ₹18,887.57 lakhs as shown below:
S.No. Components Cost

(₹ in lakhs)
1. Land 600.00
2. Building and civil works 4,244.67
3. Plant and machineries 12,244.07
4. Contingencies @5% 824.44
5. Preliminary expenses 194.27
6. Pre-operative expenses 587.49
7. Working capital margin 192.63
Total 18,887.57
Means of The project is proposed to be financed as under:

Finance
Particulars ₹ in lakhs
Equity 6,610.65
Term loan 12,276.92
Total 18,887.57
Revenue Model  Service charges to be paid by TNCSC per MT of paddy handled

for the private  Sale of Rice bran and broken rice
player
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Service charges ₹4,250 per MT of paddy
considered for
the private
player
Interest rate 10.50% per annum
considered for
term loan
Repayment 10 Years from the first drawal of loan including moratorium period of 12
period months
Financial DSCR : 1.66
Indicator BEP (3rd year) : 80%
NPV : ₹12,154.91 lakhs
IRR : 15.76%
Equity IRR : 21.03%
Economic BCR: 3.25
Indicators ERR: 28.11%
Implementation The project would be implemented in 18 months time.
period
Conclusion Based on the analysis and financial projections envisaged, ITCOT is of the
opinion that it is technically feasible, economically viable and operationally
sustainable to implement the Rice Mill project under Design, Finance, Build,
Own and Operate model on PPP mode in Thiruvarur district.
xi | P a g e
Detailed Chapters
DPR on setting up of Modern Rice Mill at Thiruvarur
1 Preamble
Paddy is the second most widely grown cereal crop and the staple food for more
than half the world's population. Asia dominates the world in rice production as it
accounts for about 90 percent of world’s paddy acreage and 92 percent of
production.
India is one of the important countries in the world in production of rice. The
country is the second-largest rice producer in the world after China, with more
than 11.0% share of the global production. Higher demand for Indian rice from
North America and European regions coupled with good climatic conditions are
supporting the growth of the market.
Tamil Nadu is one among the leading rice growing states in India and is endowed
with favourable climatic conditions suitable for rice growing. The state has around
2.2 million hectare under paddy cultivation, which covers mainly irrigated and
partly rainfed areas. The state average productivity is about 2.8 MT/ha. The
agriculture in Tamil Nadu largely depends on the quantum of rains received during
seasonal rainfall of South-West and North-East monsoon.
Tamil Nadu Civil Supplies Corporation, popularly known as “TNCSC”, a State-owned

Public-Sector Company, is involved in procurement of paddy directly from the
farmers through Direct Purchase Centres (DPCs) under decentralized procurement
system, hulling and supply of rice to Public Distribution System (PDS).
TNCSC procures around 40,00,000 MT of paddy annually and hulls it through its
own Rice Mills and hulling agents. Since harvesting season quite often encounters
with cyclones accompanied by heavy rains, mainly in Kuruvai season, the moisture
level of paddy is high requiring post-harvest drying facility. However, the Rice Mills
of TNCSC as well as hulling agents are not equipped with proper drying and storage
facilities. This results in large-scale spoilage of paddy besides deterioration of
quality of rice and by products.
In this context, the Hon’ble Minister for Food and Civil Supplies, Consumer
Protection and Price Control, Government of Tamil Nadu during demands for grants
in the State Assembly has announced that TNCSC will establish 5 Modern Rice Mills
under PPP mode in order to save the paddy from spoilage and improve the quality
of rice to be supplied to PDS. Accordingly, TNCSC propose to setup a 800 TPD
Preamble Page 1 of 121

Integrated Modern Rice Mill with post-harvest dryer, silo storage, green power co-
generation, etc. in Thiruvarur district under PPP mode and had appointed ITCOT
Limited, Chennai for preparation of Detailed Project Report (DPR).
ITCOT had prepared the DPR on the same and submitted the draft report to
TNCSC. However, during the presentation of report, Additional Chief Secretary to
Government, Co-operation, Food & Consumer Protection Department has advised
to peck the capacity at 500 TPD along with post-harvest dryer and silo facilities
instead of 800 TPD. Accordingly, the report has been revised and prepared based
on the details provided by TNCSC, estimates, collection of secondary information
on market/internet, etc.
Chapter scheme
The details of the TNCSC are provided in Chapter 2. The market assessment is
discussed in Chapter 3. The strategic need assessment and project scoping is
detailed in the Chapter 4. The technical aspects of the project are given in
Chapter 5. The Environment Impact of the project is discussed in Chapter 6. The
legal framework is presented in Chapter 7. Risk assessment of the project is
analysed in Chapter 8. The financial Aspects of the project is given in Chapter 9.
The viability aspects are examined in Chapter 10. Conclusion is given in Chapter
11. The financial workings and estimates are presented in the Financial
Statements. Details on cost of building & civil works, Plant and machinery and the
master layout of the Rice Mill are enclosed as Annexures to the report.
Preamble Page 2 of 121

2 About TNCSC
Tamil Nadu Civil Supplies Corporation Limited (TNCSC) is the implementing agency
of the proposed project.
TNCSC was incorporated in the year 1972 and later registered under Section 25 of
the Companies Act, 1956 in the year 2010. Its registered office is located at No.12,
Thambusamy Road, Kilpauk, Chennai.
TNCSC is involved in activities viz. procurement of paddy from the farmers through
direct purchase centres under decentralized procurement system and hulling of
paddy through 21 modern Rice Mills of TNCSC and private hulling agents appointed
from time to time.
2.1 Functions of TNCSC
The main functions of the Corporation are given hereunder:
 Procurement of paddy from farmers through direct purchase centres under

the decentralized procurement system.
 Hulling of paddy through 21 modern Rice Mills of TNCSC and private hulling
agents appointed from time to time.
 Lifting of rice, wheat, and sugar allotted by the Government of India from
central pool for eventual distribution under public distribution system.
 Procurement of non-PDS commodities such as pulses, edible oils etc. for
distribution under various welfare schemes of the State Government and also
for sale through Amudham Departmental Stores.
 Lifting of food grains from Food Corporation of India and distribution of food
grains to the beneficiaries of the welfare schemes announced by Government
of India
 Purchasing of tea from Indcoserve and distributing it through PDS, thereby
alleviating the sufferings of the small tea growers.
 Supplying of sarees and dhotis to the Cooperatives and Co-operative retail
shops for selling at subsidized prices.
About TNCSC Page 3 of 121

2.2 Organisation chart of TNCSC

The administrative setup of TNCSC is presented below:

TNCSC is governed by the Board of Directors consisting of senior IAS officers

headed by the Managing Director. There are 11 Directors in the Board of the TNCSC
including Chairman. The Hon’ble Minister for Food and Civil Supplies is the
Chairman of the Board. The Principal Secretary / Managing Director looks after the
day-to-day administration of the Corporation.
For administrative purpose, the entire State is divided into 32 regions headed by
the Senior Regional Manager/Regional Manager with each revenue District
coinciding with one region except Chennai. Chennai is bifurcated as North Region
and South Region to cater to the needs of city.
There are 7,264 permanent employees on roll, 2,540 seasonal employees working
in the Head office, regional offices, Godowns, Modern Rice Mills, Fair price shops
and Amudham Departmental stores spread throughout the state. Besides, 5,608
load men and 14,420 seasonal load men are working in the Godowns and Modern
Rice Mills of TNCSC.
2.3 Activities and services
2.3.1 Paddy Procurement
TNCSC has been authorized by the Government of India to procure paddy under the
Decentralized Procurement Scheme. Direct Purchase Centres (DPCs) are opened to
procure paddy directly from the farmers.
Normally, a DPC will have an area of about 33 cents with storage facility of 100 MT
and drying platform, winnowing machine, electronic weighing scale and moisture
meter. DPCs are opened every year during the harvest seasons, particularly in the
Delta districts.
The specifications prescribed by Government of India for the procurement of

paddy is given below:
S. No Refraction Maximum
Limit
1. Foreign matter
(a) Organic 1.0
(b) In-Organic 1.0
2. Damaged, Discoloured, Sprouted and weevilled grains 4.0

S. No Refraction Maximum
Limit
3. Immature, Shrunken and Shrivelled grains 3.0
4. Admixture of lower class 6.0
5. Moisture content 17.0
The Minimum Support Price (MSP) per quintal of paddy fixed by the Government of
India and the incentive announced by the Government of Tamil Nadu for Kharif
Marketing Season (KMS) 2020-21 are as follows:
Paddy variety GOI’s MSP Incentive by Govt. Price paid to

(₹ Per quintal) of Tamil Nadu farmers
(₹ Per quintal) (₹ Per quintal)
Grade A 1958.00 100.00 2058.00
Common 1918.00 75.00 1993.00
Paddy procurement details for Kharif Marketing Season (As on 31.7.2021)
KMS No. of Grade A Common Total Total rate per No. of

DPC (Qty in MT) (Qty in paddy quintal farmers
opene MT) procured Grad Commo
d (Qty in eA n
MT)
(₹) (₹)
2020-21 2,654 27,12,212 12,27,423 39,39,635 1,958 1,918 7,41,039
The total payment released to the farmers through ECS during KMS 2020-21 is
₹7664.71 crores.
TNCSC manages 296 Godowns. Of these, 255 Godowns are owned by it with a
storage and handling capacity of 11.83 lakh MT and the balance 41 Godowns having
1.56 lakh MT capacity are hired from Tamil Nadu Warehousing Corporation, Co-
operatives and other private parties for storage.
2.3.2 Rice Milling
TNCSC owns 21 Modern Rice Mills with a capacity of 52,500 MT/ month. There are
376 empanelled private hulling agents with a capacity of 6,11,291 MT for the
conversion of the procured Paddy into rice. The Government of India releases
subsidy for the Custom Milled Rice based on the economic cost fixed by them.

2.3.3 Other services
Amma Cement Supply scheme
Under this scheme, 50 Kg cement bags are being sold at ₹190/- per bag (including
Taxes) to the low- and middle-income people. The beneficiaries will be eligible to
get cement bags for construction and repair works based on the proof of
document.
Sale of Amma salt
Three Varieties of salt namely Refined Free Flow Iodized Salt, Double Fortified Salt
and Low Sodium Salt supplied by Tamil Nadu Salt Corporation are being sold in
TNCSC owned Amudham Retail Shops, Amudham Departmental Stores and Amma
Amudham Departmental Stores for the benefit of common people with a view to
eradicate Iodine Deficiency Disorder.
Sale of Ooty tea and Tantea
As ordered by Government, TNCSC sells Ooty tea through PDS shops run by the
Corporation and Amudham Departmental Stores. In addition to this, TANTEA is also
sold.
Issue of commodities to Amma Unavagam
Government of Tamil Nadu has implemented “AMMA UNAVAGAM” Scheme from

19.02.2013 to cater the need of hygienic food at a nominal rate for the daily wage
workers / downtrodden persons. Tamil Nadu Civil Supplies Corporation is supplying
Rice and Wheat to Amma Unavagam functioning in all the Districts. The
commodities are being supplied at a subsidized rate.

2.4 Infrastructure and Assets

3 Market Assessment
3.1 Rice – Global scenario
Asia-Pacific region is identified to be the largest market for rice globally.

According to the Food and Agriculture Organization (FAO), about 90% of the
world’s rice was produced in the Asia-Pacific region in 2019. India and China are
the prominent producers of rice, with the production of 177.6 million MT and 211.4
million MT, respectively, in 2019.
Over the recent years, the rice market has witnessed considerable growth on the
back of the increasing demand for rice in emerging and developing nations across
the world.
After China and India, the next largest rice producers are Indonesia, Bangladesh,
Vietnam, Myanmar, and Thailand. The graph showing the market size of the rice
globally is depicted hereunder:
Source: Food and Agriculture Organization, 2020
Asia-Pacific dominates the geography segment of Rice Market with a share of more
than 41.7% in 2019, followed by Europe. Rice Market size is forecast to reach $313
Billion by 2025, growing at a CAGR of 2.9% during the forecast period 2020-2025.
Market Assessment Page 9 of 121

3.2 Indian Rice Market
India is the second largest producer of rice in the world after China, with more
than 10% of the global production share. India produced 177 million MT of rice
from an area of 43.79 million ha during 2019. There is an increase of 8.5% in the
total rice production from 2016-2019 and the same is shown in the below graph:
Source: Food and Agriculture Organization, 2020
3.2.1 Production scenario
The state wise production of rice during FY2017-18 to FY 2019-20 is given in the
below table:
(Production in Lakh Metric MT)
S. No State 2017-18 2018-19 2019-20
1. West Bengal 149.67 162.42 155.70
2. Uttar Pradesh 132.74 155.45 155.24
3. Punjab 133.82 128.22 117.82
4. Andhra Pradesh 81.66 82.35 86.38
5. Odisha 65.51 77.34 80.37
6. Telangana 62.62 66.7 73.37
7. Tamil Nadu 66.39 61.31 71.81
8. Chhattisgarh 49.31 65.27 65.00
9. Bihar 80.93 61.56 60.53
10. Assam 52.84 52.21 50.98
11. Haryana 45.23 45.16 48.24
12. Madhya Pradesh 41.24 44.95 48.02
13. Karnataka 30.17 34.31 36.76
14. Jharkhand 40.78 28.94 31.91

S. No State 2017-18 2018-19 2019-20

15. Maharashtra 27.31 32.76 31.83
16. Gujarat 18.91 19.12 19.73
17. Uttarakhand 6.47 6.18 6.54
18. Kerala 5.21 5.78 6.14
Total 1090.81 1130.03 1,146.37
Source: Indian Council of Agricultural Research, 2020
It is inferred from the above table that the production of rice has been contributed
mainly by West Bengal, Uttar Pradesh, Punjab, Andhra Pradesh, Odisha, Telangana
and Tamil Nadu.
3.2.2 Exports
Defying Covid blues, India has exported 19.8 million MT of Rice during FY 2021.
(Source: APEDA). The Country has witnessed significant growth of 132% in export
of (Non-Basmati) Rice. Export of Non-Basmati Rice has gone up from ₹13,030
crores in 2019-20 to ₹30,277 crores in 2020-21. Increase in non-basmati rice
exports during 2020-21 was contributed by growth of both parboiled and non-
parboiled rice.
Bangladesh, Nepal, UAE, US, Malaysia and Benin are the major export partners of
India. The price of non-basmati rice, which is consumed by more than 80% of the
Indian population, has shot up by 10-15% since January, as Bangladesh has started
buying large volumes of rice from India. Bangladesh has also reduced the import
duty on rice up to 25% which would pave the way for Indian rice exporters,
particularly from West Bengal, to export non-basmati rice to the country and fetch
better prices for the grain.
The export of non-basmati rice from India to top 10 countries during the year
2020-21 is shown hereunder:
S. No Country Quantity in MT Value (₹ in lakhs)

1. Benin 1231400.55 327443.87
2. Nepal 1284631.35 293008.95
3. Bangladesh 911866.66 255253.61
4. Senegal 1036352.34 224874.74
5. Togo 780284.35 210201.23
6. Ivory Coast 732428.05 192437.35

S. No Country Quantity in MT Value (₹ in lakhs)

7. Guinea 610141.91 166688.17
8. Malaysia 453749.45 128843.04
9. Iraq 290692.64 107235.53
10. UAE 289751.15 106045.89
Source: APEDA, 2020-21
The graph showing the export value of non-basmati rice to the above listed
countries for the 2020-21 is shown hereunder:
Source: APEDA, 2020-21

3.2.3 Consumption
Non-Basmati rice varieties are widely grown across states in India. Around 65% of
India’s population consumes rice on daily basis. The overall rice consumption in
India during the year 2020-21 is 108 million MT. Consumption is expected to
increase further in the coming years with the Government providing more
subsidized rice.
The consumption scenario of rice for the past 5 years is shown in the graph below:

Consumption of rice for the past five years

Source: Department of Agriculture Cooperation and Farmers Welfare, 2020
3.2.4 Existing gaps in Rice Mill industry
Rice is the most important food crop of the Asia-Pacific Region, demand of which
is growing faster than the population. Over 90 percent of the world's rice is
produced and consumed in this Region. Moreover, this Region, has more than 56
percent of the world's population and adds 51 million more rice consumers
annually.
As a result, the thin line of rice self-sufficiency experienced by many countries is

disappearing fast, and more countries are importing rice.
Paddy production in the country is about 177 MT of rice is produced per year.
Production is bound to go up since cultivators are becoming more and more yield

conscious with good irrigation systems available and the awareness of application
of fertiliser, insecticides, pesticides, modern agricultural implements etc.
India has now approximately 97,000 Rice Milling units and most of them (to an
extent of 86,000) are using outdated equipment, especially hullers. Hulling
equipment are prove to give less rice outturn, more brokens and Rice Bran
available is not suitable for economical oil extraction; when compared to with the
modern milling equipment. In some States, huller bran is sieved and the resultant
fine bran is used as cattle feed, or otherwise mostly it is used as fuel for boiler to
generate steam.
Rice production is coming under increasing pressure due to population growth and
changing socio-economic factors. Land, water and labour resources are
increasingly less available for rice production, while at the same time, the demand
for rice and for improved grain quality is increasing. To meet the challenges,
technologies within the production and post-production chains are much required.
3.3 Profit gaps due to post harvest losses
About 20 to 25 percent of the harvested rice is lost before it reaches the

consumers’ table. The post-harvest losses in both quantity and quality lead to
substantial profit gaps among farmers. Improved processing, storage, and direct
marketing will help farmers to increase their profits. Effective farmer
organizations such as cooperatives can assist farmers in post-harvest processing
and marketing.
For better grain quality and higher head-rice yield, production and post-production
practices have to be improved. This calls for Rice Mills with advanced technology
and modern storage system.
3.4 Tamil Nadu scenario
Tamil Nadu is divided into seven Agro-climatic zones, which are north-east, north-
west, west, southern zone, high rainfall, hilly zone and Cauvery delta.
The state is one of the leading producers of paddy in the country. Paddy is the
principal crop extensively cultivated in all the Districts of the state. Rice
productivity in Tamil Nadu has always been the above the national average. The
Cauvery delta is the most fertile agricultural zone. The Districts falling in the

Cauvery delta namely Thanjavur, Thiruvarur, Nagapattinam and Mayiladuthurai are

the rice bowl of the state.
The state has 2.2 million hectares under paddy cultivation, which covers mainly
irrigated and partly rainfed areas. The state average productivity is about 2.8
MT/ha against the national average of 4.04 MT/ha.
3.3.1 Rice seasons of Tamil Nadu
The paddy growing seasons of the state are depicted in the below table:
Month of Season Districts

sowing
Dec - Jan Navarai Tiruvallur, Vellore, Tiruvannamalai, Cuddalore,
Villupuram, Tiruchirappalli, Perambalur, Karur,
Nagapattinam, Madurai, Theni, Salem, Namakkal,
Dindigul, Dharmapuri, Coimbatore, Erode and
Pudukkottai
Apr - May Sornavari Tiruvallur, Vellore, Tiruvannamalai, Cuddalore,
Villupuram, Namakkal and Dharmapuri
May - Early Kar Tirunelveli, Kanyakumari, Thoothukudi, Erode,
June Coimbatore, Madurai, Theni, Dindigul, Salem,
Namakkal and Dharmapuri
June - Kuruvai Tiruchirappalli, Perambalur, Karur, Thanjavur,
July Nagapattinam, Thiruvarur, Pudukkottai and Erode
July - Early Samba Tiruvallur, Vellore, Tiruvannamalai, Salem,
Aug Namakkal, Cuddalore, Villupuram, Madurai, Theni,
Ramanathapuram, Dharmapuri, Coimbatore, Erode,
Pudukkottai and The Nilgiris
August Samba All Districts
Sep - Oct Late Samba Tiruvallur, Madurai, Theni, Coimbatore and Erode
Thaladi/Pishanam
Sep -Oct Late Pishanam Madurai, Theni, Dindigul, Kanyakumari
Tirunelveli and Thoothukudi
Oct - Nov Late Thaladi Thanjavur, Nagapattinam, Thiruvarur,
Tiruchirappalli, Perambalur and Karur
Source: https://agritech.tnau.ac.in

3.3.2 Production
The District wise area, production & productivity of rice for the year 2019-20 is
shown in the table below:
District Area Production Yield

(Hectare) (MT) (MT/Hectare)
Ariyalur 23,224 89,656 3.86

Coimbatore 861 3,219 3.74
Cuddalore 1,32,151 4,95,309 3.75
Dharmapuri 15,812 67,791 4.29
Dindigul 8,140 36,936 4.54
Erode 34,567 1,57,592 4.56
Kanchipuram 87,329 4,33,336 4.96
Kanniyakumari 10,970 43,804 3.99
Karur 11,130 38,997 3.50
Krishnagiri 23,568 1,10,688 4.70
Madurai 40,468 1,65,916 4.10
Nagapattinam 1,69,222 5,58,609 3.30
Namakkal 10,553 47,734 4.52
Perambalur 6,162 26,988 4.38
Pudukkottai 87,809 2,73,188 3.11
Ramanathapuram 1,27,288 3,21,481 2.53
Salem 19,590 84,593 4.32
Sivaganga 70,371 1,88,316 2.68
Thanjavur 1,92,231 7,15,112 3.72
The Nilgiris 170 698 4.11
Theni 8,930 36,668 4.11
Thiruvallur 96,609 4,19,727 4.34
Thiruvarur 180,900 6,59,279 3.64
Thoothukudi 15,519 57,507 3.71
Tiruchirappalli 49,623 2,10,142 4.23
Tirunelveli 79,209 3,15,368 3.98
Tiruppur 9,849 47,760 4.85
Tiruvannamalai 1,61,679 6,89,469 4.26
Vellore 45,569 2,04,614 4.49
Villupuram 1,63,293 6,81,883 4.18

District Area Production Yield

(Hectare) (MT) (MT/Hectare)
Virudhunagar 24,492 82,781 3.38

Total - Rice 19,07,407 72,65,161 3.81
Source: Tamil Nadu Agriculture Department, 2019-20
The highlighted Districts are in close proximity to the proposed project location
from where the paddy can be procured for the proposed Rice Mill.
3.5 Market Aspects
3.5.1 Rice Milling products
Rice, through a milling process, is extracted by de-husking the paddy, which is

separated into Head Rice, Broken Rice, Husk and Rice Bran as shown hereunder:
The head rice will be taken by the TNCSC, while the by-products viz. Husk, Rice
Bran and broken rice will be given to private player to make good of the storage
and milling charges.
Rice
To ensure food security to all, the Government of Tamil Nadu has been
implementing Universal Public Distribution System (UPDS) by issuing rice, sugar,
wheat, pulses, kerosene and Palmolein oil through fair price shops for card holders

at subsidized rates except for rice, which is being issued at free of cost. There are
2,13,80,112 card holders in the state.
At present, there are 35,296 fair price shops functioning in the state. The details
of the smart cards in circulation as on 31.07.2021 are as follows:
S.No. Commodities Entitled No. of Cards

Type of Card
1. Priority Household (PHH) All Commodities including 93,23,734
rice
2. Priority Household - All Commodities including 18,63,077
Antyodaya Anna Yojana 35 kgs of rice
(PHH - AAY) Family Cards
3. Non priority House Hold All Commodities including 97,53,532
(NPHH) rice
4. Non priority House Hold Sugar option cards except 3,84,476
(NPHH) – Sugar rice
5. Non priority House Hold – No Commodity 55,293
No Commodity (NPHH –
NC)
Total 2,13,80,112
The monthly entitlement of rice under Public Distribution System and other
welfare schemes including AAY is about 3.96 lakh MT per month. The Government
of Tamil Nadu has been fully utilizing the allotments made under APL, BPL and AAY
quota.
Further, Rice hulled through the 21 Modern Rice Mills owned by TNCSC and 422
Rice Mills of private hulling agents engaged by TNCSC under Decentralized
Procurement System is also adjusted against the central pool allotment and
utilized for the Public Distribution System in the State.
However, there is still shortfall in the requirement of rice, which is met from the
Open Market Sales Scheme of the Government of India. The rice produced from the
proposed Mill will be given to the Family Card holders through Public Distribution
System (PDS) thereby minimizing the dependency on private Millers.

Rice Bran
Rice Bran is an oily layer in between the Paddy Husk and the white rice, which
constitutes about 6-7% of the paddy weight.
In India, Rice Bran has been gaining importance in the recent times in the form of
oil because of its various health benefits that include cholesterol lowering
properties due to presence of unique nutraceutical in this oil known as oryzanol &
tocotrienols, less oil absorption than other commercially available edible oils,
which favours the enhanced flavour and palatability, reduce triglycerides and
improves the good cholesterol to bad cholesterol ratio (HDL/LDL), etc.
With the population in the country being increasingly prone to lifestyle-induced

diseases, including cardiovascular problems, efforts are made to promote heart-
friendly cooking oil such as Rice Bran oil.
There are more than 15 Rice Bran oil Mills in Tamil Nadu with an installed capacity
of over 2 lakh MT of Rice Bran per annum. Presently, there is a huge demand -
supply gap for Rice Bran in Tamil Nadu and the shortfall is met by purchasing from
neighbouring states of Andhra Pradesh and Karnataka.
Further, there is also capacity addition in the Rice Bran oil Mills in the light of
growing demand for Rice Bran oil. Hence, the proposed Mill will be able to sell the
bran at remunerative price.
Broken rice
Broken rice is a fragment of rice grains obtained during the milling

process. Mechanical separators are used to separate the broken grains from the
whole grains and are usually grounded to obtain rice flour.
On the basis of different application of rice flour, market is segmented into food
and beverages, animal feed and non-food application. Rice flour is a good
substitute for wheat flour and is also used as a thickening agent in different food
applications.
Rising concerns for gluten free products have also facilitated the growth of the rice
flour market. The gluten content leads to adverse effects on human health,
causing indigestion, intestinal damage, and chronic diarrhoea. Health

consciousness among consumers coupled with increasing awareness about gluten-

free products is driving the rice flour market. Therefore, the Mill will not have any
difficulty in selling the broken rice.
Rice Husk
The Rice Husk (or hull) is the outermost layer of the paddy grain that is separated
from the rice grains during the Milling process. Around 22% of paddy by weight is
Husk. Rice Husk contains about 30–50% of organic carbon and has high heat value
of 13–16 MJ per kg and hence, it is mostly used for energy production, such as
combustion and gasification.
The various applications and uses of Rice Husk are shown in the figure below:
Applications of Husk
Since Rice Husk can be easily collected and is cheap, it has always been used as an
energy source for small applications, such as for briquette production, for steam
engines and gasifiers used to power Rice Mills, and for generating heat for rice
dryers.
Hence, the Husk produced will be used as fuel for the boiler to generate steam,
which would in turn help in in-house power generation.

4 Strategic need assessment and Project

scoping
4.1 Geographic Location
Thiruvarur district, popularly known as the Rice Bowl of Tamil Nadu is located
between 10º 20’ and 11º 07’ North latitude and 79º 15’ and 79º 45’ East longitude.
The total geographical area of the District is 2374 sq.km, accounting for 1.8
percent of the total area of the state. It is bounded on the North by
Mayiladuthurai districts, on the East by Nagapattinam, on the South by Palk Strait
and Thanjavur district and on the west as shown below:
THIRUVARUR
Location of Thiruvarur district
4.2 District Administration
The administrative profile of the District is given here under:
Strategic need assessment and Project scoping Page 21 of 121

There are 2 revenue divisions, 7 taluks, 10 community development blocks, 4

municipalities, 7 Town Panchayats and 573 revenue villages in Thiruvarur district.
The Thiruvarur district taluk map is shown below:
Map showing taluks of Thiruvarur District
4.3 Climate and rainfall
The climate of the District is tropical in nature. There is moderate rainfall during
southwest monsoon and heavy rain is experienced during northeast monsoon.
However, during January to February is experienced as winter season and March to
May is considered as summer and experienced to be hot.
4.4 Water resources
The river Cauvery and its tributaries are the most remarkable feature of
Thiruavarur district. Canals, wells, tanks and reservoirs are the sources of
irrigation in the District. Several plans and schemes have been introduced for
uninterrupted water supply for domestic and economic activities.

4.5 Agriculture
Thiruvarur district stands unique from time immemorial for its agricultural
activities and is rightly acclaimed as the granary of South India lying in the deltaic
region of the famous river Cauvery and criss-crossed by lengthy network of
irrigation canals. Therefore, this coastal District abounds in green paddy fields, tall
coconut groves, vast gardens of mango and plantain trees and other verdant
vegetation.
More than 75 percent of the total work force is dependent upon Agriculture.
Around 14% are cultivators and the rest are agricultural labourers. Paddy is the
principle crop of the District. The District forms part of the rice bowl of Tamil
Nadu. Cotton, Groundnut, Coconut, Gingelli, Palmolin etc are the other crops
grown in this District.
4.6 Network linkages
The major national highways and the state highways passing over the District are
as under:
National highways
 NH – 67 connecting Coimbatore - Nagapattinam
State highways
 SH – 23 connecting Mayiladuthurai – Thiruthuraipoondi Road

 SH – 63 connecting Thanjavur – Mannargudi – Thiruthuraipoondi – Vedaranyam –
Kodiakkarai Road
 SH – 65 connecting Thiruvarur – Kodavasal – Kumbakkonam Road
 SH – 66 connecting Kumbakonam – Mannargudi – Adirampattinam
 SH – 67 connecting Nagapattinam – Gudalore – Mysore Road
 SH – 146 connecting Mannargudi – Pattukottai – Sethubavachadram
 SH – 147 connecting Kumbakkonam – Karaikal
 SH – 148 connecting Nagore – Vettar Road
 SH – 200 connecting Nagore – Nagapattinam – Ramanathapuram - Tuticorin
 SH – 202 connecting Tiruvarur – Mannargudi – Muthupet Road

Thus, the District has good connectivity in terms of road and is also well connected
with catchment area for Paddy procurement.
The District falls within the Cauvery delta zone and is popularly known as “Rice
bowl” of Tamil Nadu. Overall, the District is considered well suited for the
construction of Rice Mill.
4.7 Demand assessment in the District
Thiruvarur district is present predominantly Cauvery delta zone and practices

agricultural as a major occupation throughout the District. The total cultivated
area along with paddy production for last three years in the District is mentioned
below:
Year Cultivated area Production

(In Ha) (In MT)
2017-18 1,80,999 6,99,921
2018-19 1,88,709 6,56,436
2019-20 1,80,900 6,59,279
The existing mechanism of the paddy procurement and processing by TNCSC is

depicted in the flowchart below:
4.7.1 Paddy Procurement
Around 8.56 lakh MT of paddy have been procured by TNCSC through 476 Direct
purchase Centres (DPCs) in the District during 2020-21. The details of DPC and the
quantity of paddy procured are as under:

S. Location of the DPC Procurement S. Location of the DPC Procurement

No (MT) No (MT)
1. Paruthiyur 1,516 38. Ammalur 1,971
2. Alathur 4,423 39. Ammanoor 772
3. Puthukudi 3,153 40. Amur 668
4. Melanemmeli 3,402 41. Andankovil 1,912
5. Pudhukudi 721 42. Annathanapuram 875
6. Paruthiyur 520 43. Anniyur 2,000
7. Kulamanickam 1,537 44. Annukudi 838
8. Renganathapuram 2,028 45. Arasur 1,453
9. Kilieyur 798 46. Aravathur 1,183
10. Kulamanickam 1,310 47. Arayur 760
11. A k s nagar 801 48. Arichchapuram 1,953
12. Aalacheri 2,931 49. Arppavoor 2,103
13. Aalangadu 2,036 50. Athanur 3,588
14. Aalathambadi 1,994 51. Athikkottai 27-2 3,855
15. Aanaikuppam 3,475 52. Athirangam 900
16. Aandankarai 1,510 53. Avalivanallur 3,257
17. Aariyalur 1,200 54. Ayyampettai 2,608
18. Aathichamangalam 677 55. Ayyeppettai 2,378
19. Aathichchapuram 1,806 56. Chakarakothangudi 1,749
20. Aavur 2,749 57. Chandrasekarapuram 2,211
21. Aaykkudi 0 58. Cheri 2,254
22. Aaykudi 759 59. Chetiyamoolai 3-1 956
23. Abhivirutheswaram 840 60. Chinnagaram 729
24. Achchuthamangalam 1,377 61. Chithamalli 2,985
25. Adambaar 3,032 62. Chithanvaalur 1,935
26. Adippuliyur 670 63. Chitisimili 1,651
27. Adiyakkamangalam 1,896 64. Chittamalli melpathi 3,090
28. Agarakothangudi 835 65. Cholanganallur 4-1 1,788
29. Agarathirumaalam 703 66. Cholapandi 3,576
30. Agaravayal 1,058 67. Depangudi 1,090
31. Akkaraikottakam 1,794 68. Desingurajapuram 1,586
32. Alangottai 3,141 69. Devadhanam 1,018
33. Alangudi 2,325 70. Duraikudi 1,098
34. Alathur 1,411 71. Eathakkudi 2,127
35. Alivalam 1,631 72. Eda annavasal 3,003
36. Amirthavalli 836 73. Edaichimoolai 2,704
37. Ammaiyappan 1,172 74. Edaiyar empethi 2,235


No (MT) No (MT)
75. Edakeelaiyur 2,117 110. Kallikkudi 952
nadutheru 111. Kamalapuram 652
76. Edakelaiyur 3,488 112. Kamukagudi n 2,218
77. Edamelaiyur 2,818 113. Kandamangalam 960
78. Edamelaiyur 564 114. Kandaramanikkam 2,171
kandiyar theru 115. Kandithampettai 34-1 2,397
79. Ekkal 1,261 116. Kandiyur 1,802
80. Elavanur 1,644 117. Kangeyanagaram 1,644
81. Elilur 1,034 118. Kankoduthavanitham 1,927
82. Enkan 2,517 119. Kannarapettai 3,553
83. Eravancheriy 1,757 120. Kannur annavasal 2,421
84. Erivelue 2,570 121. Kannur annavasal 2 1,462
85. Erumaipadugai 1,643 122. Kanoor 2,009
86. Erurnthavadi 485 serumangalam
87. Esanakkudi 853 123. Kappaludaiyan 2,560
88. Ettiyalur 723 124. Karaiyappalaiyur 1,459
89. Govindakudi 2,072 125. Karakkottai 5-2 2,430
90. Harithuvaramangalam 2,644 126. Kariyamangalam 1,132
91. Idumbavanam 1,613 127. Karkkathi 2,783
92. Ilaiyur 1,945 128. Karkovil 2,098
93. Ilavangarkudi 644 129. Karnavur 992
94. Inaam kiliyur 6-2 1,725 130. Karpaganatharkulam 837
95. Irulnekki 1,713 86-1
96. Kaappanamangalam 906 131. Karuppukkilar 2,367
97. Kachchanam 2,083 132. Karuvakkurichchi 2,886
98. Kadalangudi 2,112 133. Karuvakulam 1,131
99. Kadamakudi 4,020 134. Kathiramangalam 618
100. Kadiyacheri 931 135. Kattakudi 3,254
101. Kaduvakudi 841 136. Kattimedu 666
102. Kailasanatharkovil 815 137. Kattoor 663
103. Kalaanjimedu 2,504 138. Keela- 886
104. Kalachcheri 2,640 athichamangalam
105. Kalappal 1,277 139. Keelakalvikudi 1,190
106. Kalathur 666 140. Keelamanali 1,298
107. Kalathurmelkarai 674 141. Keelanammankurichi 1,721
108. Kalattur 768 142. Keelanatham 626
109. Kaliyaakudi 988 143. Keelapadugai 895


No (MT) No (MT)
144. Keelapalam 2,820 181. Kunnalur 1,405
145. Keelapattu 2,922 182. Kunniyur 3,632
146. Keelaputthur 897 183. Kunnur 1,240
147. Keelathirupalakudi 1,445 184. Kurichimolai 1,322
148. Keerandakudi 888 185. Kuruchi 1,007
149. Keerangudi t 2,745 186. Kurumbal 1,025
150. Kelaperumalai 773 187. Kuvalaikkal 2,250
151. Kelappalaiyur 1,176 188. Maaligaithidal 2,135
152. Kellaerukattur 1,445 189. Maathur 794
153. Keluvathur 1,061 190. Madappuram 2,346
154. Kerakkalur 1,974 191. Magilancheri 1,056
155. Keranur 2,987 192. Mahadevapattinam 3,040
156. Kethanur 678 193. Maharajapuram 882
157. Kilariyam 995 194. Malavarayanallur 746
158. Killiyur 4,725 195. Manakarai k 1,475
159. Kokkaladi 1,847 196. Manakkaal 980
160. Kollaapuram 2,762 197. Manali 1,417
161. Kollumnagudi 1-1 2,413 198. Manalur 4,149
162. Komal 1,841 199. Manapparavai 941
163. Koodur 897 200. Mangudi 2,971
164. Koonthalur 2,805 201. Manikkamangalam 3,097
165. Koopachikkottai 2,420 202. Manjakkudi 1,084
166. Kootakachery 711 203. Mannakal 1,239
167. Koothanallur 974 ayyampetai
168. Koothanur 3 975 204. Mannavankottagam 1,562
169. Koradacheri 4,171 205. Mannukkumundan 1,841
170. Korukkai 1,367 206. Mappilaikuppam 1,076
171. Kottaiyur 2,526 207. Maruthapatinam 475
172. Kottarakudi 786 208. Maruthavaancheri 5,281
173. Kottur 720 209. Maruthavanam 1,822
174. Kovilthirumaalam 1,733 210. Maruthuvakkudi 698
175. Kovilvenni 2,273 211. Maruvathur 2,135
176. Kuchipalayam 2,093 212. Mathakaram 684
177. Kudavasal 1,679 213. Mavattakudi 1,397
178. Kulikarai 834 214. Mazhaiyur 847
179. Kumaramangalam 4,637 215. Meenambanallur 1,077
180. Kummattithital 1,659 216. Mela maruthur 1,436


No (MT) No (MT)
217. Melaamaravathi 2,929 252. Nallur 4,023
218. Melachery 729 253. Nannilam 5,160
219. Melaerukkattur 2,020 254. Naranamangalam 2,488
220. Melamaruthur 2,393 255. Narikudi 987
221. Melapannaiyur 1,719 256. Narthangudi 2,045
222. Melaperumazhai 775 257. Navalpoondi 1,294
223. Melapovnur 1,840 258. Neduchery 961
224. Melaputthur 843 259. Nedumbalam 1,961
225. Melaramansethi 966 260. Nedungulam 3,865
226. Melathirpalakudi 1,979 261. Neduvakkottai 1,759
227. Melathirumathikunn 707 262. Needamangalam 3,633
am 263. Neikkuppai 930
228. Melvasal 2,738 264. Nemmeli 976
229. Menangudi 1,821 265. Nemmeli 54 2,502
230. Mettupalaiyam 1,786 266. Nimmalkudi 643
231. Mondramsethi 1,813 267. Nochchiyur 982
232. Moolamangalam 1,121 268. Nunakkadu 904
233. Moolangudi 3,180 269. Odaacheri 1,889
234. Mottathur 2,612 270. Ohaiperaiyur 703
235. Movarkkottai 3,064 271. Olimathi 2,333
236. Mudikondaan 1,919 272. Oorukudi 2,276
237. Muganthanoor 1,077 273. Oottiyani 1,614
238. Mukkulam sathanaur 2,145 274. Orathur 869
30-1 275. Ovelkudi 1,638
239. Mulaalvanjeri 794 276. Overcheri 1,874
240. Muniyur 2,528 277. Paadakachcheri 2,560
241. Munnavalkottai 2,402 278. Paalaiyur 1,334
242. Musiriyam 1,590 279. Paingaanadu 3,116
243. Muvanallur 3,394 280. Paingattur 911
244. Nadakudi 2,785 281. Paithancheiry 1,394
245. Nadappur 927 282. Palaiyanur 642
246. Naduvachery 737 283. Palaiyavalam 1,226
247. Naduvalikalappal 985 284. Palavanakkudi 313
248. Nagar 2,642 285. Pallayur 1,664
249. Nalaamsethi 972 286. Pallivaaramangalam 733
250. Nallamaangudi 944 287. Pallivarthi 1,475
251. Nallikkottai 2,985 288. Pamani 3,363


No (MT) No (MT)
289. Pamani 2 1,536 326. Pulavanatham 1,410
290. Pandichatram 2,062 327. Pulichakkadu 2,327
291. Pandikkottagam 1,823 328. Pulivalam 585
292. Paravakkarai 2,790 329. Puliyakkudi 2,307
293. Paravakkottai 35-2 2,626 330. Pullamangalam 1,358
294. Paravakkottai 35-3 1,729 331. Pullavarayankudikadu 3,172
295. Paruthikkottai 3,607 332. Puluthikkudi 1,762
296. Paruthiyur 788 333. Puthagaram 2,798
297. Patthur 2,162 334. Puthukkudi 2,660
298. Pavattakkudi 1,091 335. Puthutheru 743
299. Payiri 888 336. Rajagopalapuram 4,365
300. Peraiyur 2,461 337. Rajalikudikadu 2,021
301. Peralam 2,838 338. Rajankattalai 1,642
302. Perampur 3,179 339. Rathanarasimmapur 3,555
303. Periyakotthur 797 am 66-1
304. Periyakuruvadi 1,020 340. Rayanallur 803
305. Perukavazhnthan 1,999 341. Rayapuram 2,964
306. Perumalnagaram 1,680 342. Rayapuram 1,591
307. Perumangalam 968 agraharam
308. Perumpanniyur 2,072 343. Regunathapuram 1,433
309. Perumpugalur 774 344. Regunathapuram 44 2,052
310. Perungudi 1,630 345. Regunathapuram 83 1,733
311. Peruvidamaruthur 1,999 346. Rishiyur 3,101
312. Pilavadi 864 347. Sallipperi 4,180
313. Pillur 4,038 348. Sanganthi 2,025
314. Pinnathur 915 349. Sannanallur 1,227
315. Pitchankottagam 1,540 350. Sarabojirajapuram 899
316. Polakkudi 2,735 351. Sarguneshvarapuram 2,826
317. Ponnairuppu 3,503 352. Sathanoor 1,753
318. Ponnirai 1,732 353. Savalakkaran 696
319. Poonthottam 637 354. Seethakkamangalam 1,251
320. Poovanatham 2,653 355. Segalmadappuram 1,430
321. Poovanur 2,640 356. Sellur 893
322. Posalaangudi 1,788 357. Sembangudi v 504
323. Pothakkudi 2,181 358. Sembiyamangalam 1,085
324. Pudur 1,680 359. Sembiyanallur 2,951
325. Pulavanallur 878 360. Semmangudi 780


No (MT) No (MT)
361. Senganur 3,029 398. Thirukalmbur 1,547
362. Senikudikadu 3,137 399. Thirukanamangai 444
363. Senkalipuram 3,173 400. Thirukkalar 1,923
364. Senthamangalam 868 401. Thirukkannamangai 384
365. Senthamaraikan 681 402. Thirukkottaram 2,156
366. Senthangudi 1,584 403. Thirukkudi 784
367. Serangulam 931 404. Thirumakkottai 3,246
368. Serugudi 2,830 405. Thirumiachchur 1,416
369. Serukalathur 1,382 406. Thiruneipper 1,345
370. Serumangalam 3,608 407. Thirupathur 2,039
371. Seruvaalur 1,687 408. Thiruppamburam 1,529
372. Seruvamani 876 409. Thirurameshwaram 4,293
373. Simizhli 828 410. Thiruthankur 1,425
374. Sithadi 2,138 411. Thiruthirapoondi 2 2,132
375. Sithamboor 2,690 412. Thiruthuraipoondi 2,608
376. Sitheri 2,651 413. Thiruvanchiyam 822
377. Sonapettai 3,454 414. Thiruvidachcheri 2,346
378. Sothamangalam 1,349 415. Thiruvilimilalai 3,796
379. Sothiriam 1,447 416. Thiruvonamangalam 1,108
380. Suraikkaayur 2,549 417. Tholi 1,408
381. Thalaikudi 735 418. Tholuvur 2,165
382. Thalakkadu 863 419. Thondiyakadu 1,087
383. Thalikkottai 2,312 420. Thundakkattalai 2,054
384. Thanneerkunnam 793 421. Tirunellikaval 1,364
385. Thappalampuliyur 2,507 422. Ubhayavedanthapur 3,089
386. Thattangoil 1,183 am
387. Thenbathi 1,155 423. Ullikottai 2,642
388. Thenkaraialathur 828 424. Uppur 1,318
389. Thenkaravayal 608 425. Uthayamarthandapu 856
390. Thenkovanur 1,882 ram
391. Thenkuvalaveli 2,742 426. Uthukkadu 3,449
392. Thennavarayanallur 858 427. Vaallur 2,212
393. Thenparai 3,598 428. Vadakarai 2,307
394. Therkuppattam 3,303 429. Vadakaravayal 4,711
395. Thethiyur 2,147 430. Vadakkuppattam 647
396. Thevaengudi 3,457 431. Vadakovanur 786
397. Thillaivilagam 1,397 432. Vadakudi 1,212


No (MT) No (MT)
433. Vadamattam1-1 2,357 462. Vembanur 433
434. Vadapathi 698 463. Venkateswarapuram 995
435. Vadapathimangalam 1,452 464. Veppathaankudi 1,282
436. Vadaver 3,844 465. Veramangalam 3,988
437. Vadavur sathanoor 3,130 466. Veranam 1,662
438. Vadukakkudi 2,183 467. Verkudi 1,678
439. Vadur 2,688 468. Vethividangan 1,117
440. Vadur vadapathi 2,475 469. Vidayalkarupur 651
441. Vaduvur 830 470. Vikrapandiam 928
puthukkottai 471. Vikrapandiyam 1,346
442. Vaippur 1,581 472. Vilagam 1,829
443. Vakranallur 725 473. Vilakkudi 1,010
444. Valangaiman 2,151 474. Vilathur 3,444
445. Vallur 779 475. Vishnupuram 1,771
446. Vanchiyur 822 476. Vittukatti 1,070
447. Vandampalai 1,122 Total 8,56,384
448. Vanga nagar 1,228 (i.e.,) 8.56 Lakh MT
449. Vanjiyur 1,504
450. Varambiyam 904
451. Vattar 2,269
452. Vayalur 2,609
453. Vedambur 1,010
454. Vedhapuram 1,646
455. Veerakanu 1,132
456. Veeravanallur 3,704
457. Veetaithidal 1,340
458. Velangudi 2,219
459. Vellai adambaar 1,685
460. Velukkudi 994
461. Velur 1,244
4.7.2 Storage Godowns
The District has 16 Nos. of storage godowns with over all capacity of around
1,18,930 MT and the details are as under:

S. No Name of the godown Operation type Godown type Capacity

(In MT)
1. Thiruvarur O O 2,000
2. Achuthamangalam O O 1,000
3. Kodavasal O O 1,810
4. Cap Alangudi O H 15,000
5. Mannargudi O O 2,970
6. Per Valanthan O O 1,200
7. Adhanur O O 750
8. Molangudi O O 450
9. Keelapandi O O 1,850
10. G.C. Thiruvarur O O 13,000
11. Sundarakottai B O 17,500
12. MRM Thiruvarur B O 1,200
13. GU Sundarakottai G O 6,000
14. Perugavalzthan O O 1,200
15. Pamini C.W.C B H 1,500
16. Vilamal O H 1,500
Total 1,18,930
Legend
Operation Type O - Operation B – Buffer
Godown Type H-Hired M – MRM
O – Owned W - Warehouse
The map showing the location of Godowns under TNCSC, TNWC, CWC and FCI in
the District is presented below:
Technical Aspects Page 32 of 121

Paddy storage godowns in Thiruvarur district
4.7.3 Milling
TNCSC owned Rice Mills
TNCSC has two Rice Mills in the District with a total handling capacity of 57,600 MT
per annum and the details are as under:
S. No Location of MRM Capacity

(MT per Annum)
1. Thiruvarur 30,000

S. No Location of MRM Capacity

(MT per Annum)
2. Sundarakottai 27,600
Total capacity 57,600
Private hullers engaged by TNCSC
TNCSC has also outsourced the hulling of paddy to the private hullers in the
District at the rate of ₹400 per MT. The list of private hullers engaged by TNCSC
for hulling is given hereunder:
S. Name of the hulling agent Own / Parboiled/Raw Capacity

No Lease (MT per
annum)
1. Thiru.A. Selvam, M/s. Sri Own BR 30,000
Venkateswara MRM
2. Thiru.A. Venugopal, Sri Lakshmi Own BR 27,000
MRM
3. Thiru.A. Rajagopal, M/s. A.R.R. Own BR 55,680
MRM
4. Thiru.M. Mohamed Ismail, M/s. Own BR 18,000
Anees MRM
5. Thiru.G. Senthilnathan, M/s. Own BR 19,200
Arunachalam MRM
6. Thiru.A. Maideen Abdul Kadar Own BR 13,200
M/s.Dawood MRM
7. Thiru.K. Kumar, M/s. K.K.V. Vinaya Own BR 16,200
MRM
8. Thiru.M.Aysha Nachiaya, M/s. Own BR 30,000
Aysha Nachiaya MRM
9. Thiru.M. Gunasekaran, S.M. Sons, Own BR 75,000
M/s. Sri Vignesh MRM
10. Thiru.N. Rajasekaran, M/s. Sri Own BR 24,000
Balaji MRM
11. Thiru.N.Ramesh, M/s. Gayathri Own BR 22,080
MRM
12. Thiru.R.P. Imayaveeran, M/s. Sri Own BR 78,000
Vishnu & Co,
13. Thiru.S. Mohamed Beevi, Own BR 36,000

S. Name of the hulling agent Own / Parboiled/Raw Capacity

No Lease (MT per
annum)
M/s.Kathariya MRM
14. Thiru.J. Ravichandran, M/s.Sri Own BR 16,800
Balaji MRM
15. M/s.Sri Guru MRM Own BR 19,200
16. Thiru.N.Palanisamy, M/s.Sri Own BR 30,000
Padmavathi MRM
17. M/s. Sri Rajeswari MRM Own BR 28,800
18. M/s.Sri Vijaya Sathiya MRM Own BR 18,000
19. USS Firm, M/s. Mohaideen Andavar Own BR 26,400
MRM
20. Thiru.N.Mohammed Hiquim, Own BR 20,400
M/s.VTA Noor Mohammed MRM
21. A.S.R Sornam & Associates, J.J.M. Own BR 21,600
MRM
22. Thiru.N.Jayakumar, M/s.Sri Own BR 33,000
Kaligammbal MRM
23. Thiru.N. Duraisamy, M/s.Nivetha Own BR 64,800
MRM
24. Thiru.R. Udyakumar, M/s.Sri Own BR 9,600
Venkatachalapathy MRM
Total hulling capacity 7,32,960
i.e 7.33 Lakh MT
The total paddy processing capacity available with empanelled private hullers of
TNCSC at present is 7.33 Lakh MT. Out of which, only 60% output efficiency is
obtained since the machineries and technology used by them are obsolete.
Therefore the total processing capacity at 60% output efficiency works out to 4.40
Lakh MT.
The procured paddy is processed by private hullers in the quality specifications set
by TNCSC as mentioned below:

S. No Refraction Maximum limit (%)

Grade A Common
1. Brokens*
Raw 25.0 25.0
Parboiled/ single parboiled 16.0 16.0
2. Foreign matter** (organic + in organic)
Raw/parboiled rice 0.5 0.5
3. Damaged#/ Slightly damaged grains
Raw 3.0 3.0
parboiled 4.0 4.0
4. Broken discoloured grains
Raw 3.0 3.0
Parboiled rice 5.0 5.0
5. Chalky grains
Raw 5.0 5.0
6. Red grains
Raw/parboiled 3.0 3.0
7. Admixture of lower class
Raw/parboiled 6.0 -
8. Dehusked grains
9. Moisture content***
Source: http://www.tncsc.tn.gov.in
Note:
* Including 1% small broken
** Not more than 0.25% by weight shall be mineral matter and not more than 0.10% by
weight shall be impurities of animal origin
# including pin point damaged grains
*** Rice (both Raw and Parboiled) can be procured with moisture content up to a
maximum limit of 15% with value cut. There will be no value cut up to 14%. Between
14% to 15% moisture, value cut will be applicable at the rate of full value.

4.8 Need for New Rice Mill in the District
Harvesting season of paddy quite often encounters with cyclones and heavy rains,
mainly in Kuruvai season. The existing Rice Mills of TNCSC as well as the hulling
agents do not have proper drying and storage system, which results in increase of
moisture content of paddy beyond the prescribed limits of 17%. High moisture
leads to large-scale spoilage besides deterioration of quality of rice and by
products.
Over the past few years, there has been steady increase in quantity of paddy
coming to DPCs due to attractive minimum support price. However, parallel
increase in storage facilities and Milling capacity of paddy did not happen. This led
to storage of the paddy in the open field and increase in quantity of unprocessed
paddy.
For instance, as per TNCSC estimates, the unprocessed paddy during the year 2021
in Thiruvarur District due to lack of proper storage and Milling facility is estimated
below:
S. Particulars Total
No. (Lakh MT)
A. Paddy procured through DPCs 8.56
B. Paddy processed through TNCSC owned Rice Mills 0.58
C. Paddy processed through private hullers 4.40
D. Quantity of paddy stored in TNCSC godowns 1.19
E. Less: Previous year stock @30% of storage capacity 0.83
F. Quantity of paddy left unprocessed by TNCSC F=A-(B+C+E) 2.75
The scenario of paddy left unprocessed is depicted below:

The cost of operation until loading of rice bags to truck from MRM is estimated as
below
Cost of operation per MT of Paddy - Present Scenario

DPC
Bagging
No. of bags required per MT 25 bags
Cost of Gunny Bag ₹ 69.69 per bag
No. of turns per bag 3
Total cost of gunny bag ₹ 580.74 per MT
Cost of bagging, weighing, stitching & ₹ 31.02 per MT
stacking
Weighment ₹4.67 Per MT
Cost of loading to Truck ₹ 31.02 per MT
Average distance from DPC to paddy storage 30 km
Godown
Cost of transportation from DPC to paddy ₹ 1,474.00 per MT
storage Godown
Sub-Total (A) ₹ 2,121.45 per MT
Paddy storage Godown
Cost of unloading & stacking at paddy ₹ 31.02 per MT
storage Godown

Cost of operation per MT of Paddy - Present Scenario

Weighment 8.90 per MT
Godown Rental ₹ 8.25 per bag per month
for 35 - 50 kg bags
No. of bags per MT 25 Nos.
Godown Rental per month 206.25 per MT
Avg. storage months in godown 4 months
Net Godown Rental ₹ 825.00 per MT
Cost of loading to Truck ₹ 31.02 per MT
Average distance from Godown to Mill 10 kms
Cost of transportation of paddy from ₹ 894.00 per MT
Godown to Mill
Sub-Total (B) ₹ 1,789.94 per MT
MRM
Hulling charges with colour sorter ₹ 400.00 per MT of rice
Rice yield per MT of paddy 68%
Hulling Charges per MT of paddy ₹ 272.00 per MT of paddy
Sub-Total (C) ₹ 272.00 per MT of paddy
OPEX until loading of rice bags to trucks at ₹ 4,183.39 per MT of paddy
MRM without bags(A+B+C)
In order to address the above burning issues, it is considered essential to establish

integrated Rice Mill with proper storage and Milling facilities viz. post-harvest
dryer and silos. Accordingly, an integrated MRM with adequate storage systems is
proposed in Thiruvarur district and same is detailed hereunder:
Silo storage system and paddy dryer
Storage plays a vital role in the food supply chain, where maximum losses happen
during this operation. Steel silos can be equipped with complete temperature
control and ventilation system that guarantees the maintenance of the grain in
good conditions. Also, it has greater storage capacity in a much smaller area due
to their vertical arrangements as well as easier to unload with different unloading
conveyer system.
The capacity of the proposed silo storage is considered as 40% of annual production
capacity of Rice Mill. Thereby, the silo capacity required for the proposed
integrated modern Rice Mill (MRM) with a capacity of 500 MT/day or 1,50,000
MT/Annum by considering 300 working days, works out to 60,000 MT.

The maximum storage capacity of silos recommended for storing paddy is 3000 MT
in order to prevent germination of grain. Therefore 20 Nos. of 3000 MT silos are
proposed in order to meet the yearly demand of the Mill.
During the time of harvest at Kuruvai season (duration of paddy grown<120 days)
the moisture content in paddy reaches to highest level of 22%, which makes it
unsuitable for storing and processing the paddy. Therefore, the procured paddy
undergoes drying process that reduces grain moisture content to 12% for storage,
making it the most critical operation after harvesting a rice crop.
Delays in drying, incomplete drying or ineffective drying will reduce the grain
quality which can result in suffering product losses. The schematic illustration of
the process with an example of 1 quintal of paddy is explained below:
Moisture content of Decrease of weight by

paddy is higher by 1% 1.1 Kg per qtl
The peak harvesting season is about 100 days in a year. Accordingly, the capacity
of post-harvest dryer required for the proposed silo capacity of 60,000 MT is
600 MT/day.
A. Capacity of each paddy dryer recommended 50 MT/batch

B. No. of paddy dryers recommended to meet the 4 Nos.
demand
C. No. of batches per day per dryer 3 Nos.
D. Total capacity of paddy dryers (D=A*B*C) 600 MT/day
It is concluded from the preceding discussions that there is a need to set up an

integrated Modern Rice Mill of 500 MT per day capacity in the District with post-
harvest dryer and silo storage system.

Comparison of Warehouse and Silo
In the current scenario, the paddy procured from farmers is stored at godowns
(warehouse) by TNCSC. A comparison of Capital and recurring expenditures for
warehouse and silo is as below:
Warehouse
Capacity 60,000 MT
Land requirement 30 acres
CAPEX Cost ₹102.00 crores
~ Land ₹6.00 crores
~ Warehouse (Based on TNCSC estimates) ₹96.00 crores
OPEX Cost
Moisture level required 17%
Drying charges ₹200.00 per MT
Cost of gunny bag ₹464.59 per MT
Cost of bagging, weighing, stitching & stacking ₹31.02 per MT
Repairs & Maintenance charges ₹10.00 per MT
Fumigation charges ₹81.92 per MT
Cutting of paddy bags and unloading at conveyor system ₹17.38 per MT
Total ₹804.91 per MT
Silo
Capacity 60,000 MT
Land requirement 7 acres
CAPEX Cost ₹60.40 crores
~ Land ₹1.40 crores
~ Silo ₹59.00 crores
OPEX Cost
Moisture level required 13%
Drying charges ₹500 per MT
Maintenance charges ₹50 per MT
Fumigation charges ₹50 per MT
Total ₹600 per MT
Difference in CAPEX cost ₹41.60 crores
Difference in Recurring expenditure ₹204.91 per MT

No. of cycles per annum 2
Capacity handled per annum 1,20,000
Difference in recurring exp. per annum ₹2.46 crores
For 20 year of concession period ₹49.20 crores
4.9 Project Scoping
The project is proposed to be implemented on Design, Finance, Build, Own &

Operate (DFBOO) model under Public Private Partnership (PPP) mode to overcome
the limitations in the existing mechanism as well as to improve the quality of the
rice and by-products.
It is envisaged that the selected private player will purchase the required land for
the project and will be responsible for establishment, operation & maintenance of
the Rice Mill.
The following activities which are presently handled by TNCSC will be transferred
to the private player:
At DPC
 Collection of paddy from farmer
 Bagging, Weighing, stitching and stacking
 Loading and transportation to godown
At Godown
 Unloading and stacking paddy bags
 Weighing paddy bags
 Loading and transportation to MRM
At MRM
 Unloading paddy bags at Rice Mill
 Bagging, weighing, stitching and stacking of rice bags
 Loading of rice bags to truck
The schematic representation of the process flow is given below:


5 Technical Aspects
5.1 Site Plan
A typical site plan for a modern Rice Mill would have the following key parameters:
Applicable norms, best practices and standards for area allocation, parking, fire
safety, public facilities etc. have been considered while designing the layout based
on the above parameters and the master plan for the proposed Rice Mill is
enclosed as Annexure – I.
5.2 Land
An extent of 20 acres is required for setting up of 500 MT Modern Rice Mill. The
private player will purchase the required land for the project in Thiruvarur district.

The choice of location shall be given to the private player with a condition that the
location should be within the District.
5.3 Building and Civil works
The major buildings of the proposed Rice Mill include co-gen power plant, boiler
room, mill unit building, rice storage godown, admin Building, etc. The details are
given hereunder:
S. No. Description Area Building

(Sq.ft.) Type
1 Raw Paddy Cleaning Section
Paddy unloading point 8665 PEB
Pre-cleaning tower 605 PEB
Pre-drying area 9160 PEB
2 Dryer & Parboiling Section
Unloading section 9472 PEB
Dryer section & Gel Cook Section 12917 PEB
3 Milling & Packing Section 37674 PEB
4 Boiler & Turbine Section 24262 PEB
5 Transformer and Power house section 6041 PEB
6 Truck drivers’ waiting area 4478 PEB
7 Final product godown 26910 PEB
8 Paddy sampling lab 646 RCC
9 Weighbridge cabin 258 RCC
10 Administrative Building 10259 RCC
11 Workers’ Hostel 3988 RCC
12 Dining Area 5247 RCC
5.4 Plant and Machinery
The major machineries of the Rice Mill include post-harvest dryer, Silos,
Converyors, parboiling & drying unit machineries, Mill machineries, automatic
weighing, bagging & stitching machineries. The utilities include boiler, co-
generation power plant, transformer and DG sets. The list is given hereunder:
DPC infrastructure
1 Conveyor
2 Destoner and Pre-cleaner

3 Moisture meter, Weighing Scale & Mobile Platform

4 Pneumatic pump
5 Closed top for paddy tipper
6 10 MT vehicle (12-wheeler)
Post-Harvest Dryer and Parboiling section
1 Raw Paddy Cleaner
2 Batch Parboiling Tanks
3 Dried Paddy Silos/ Storage Bins
4 Hot water tank
5 Water Circulation line, IBR Steam Line & Water feeding line
6 Additional Elevator & Erection items
7 Raw Paddy Storage Bins & Elevators in Silo Cleaning Section
Silo
1 Grains Silos – 3000 MT x 20 (Total: 60000 MT)
2 Grain Chillers
Milling Section
1 Rice Mill Machines and Colour Sorter
2 Rice Mill Machine Accessories
3 Electrical panel & Cabling
4 Elevators, Fabrication, Erection & Installation
5 Compressor, Receiver Tank & Air Dryer
6 Airline and Water Line for Milling Section
7 Packing machine, stitching machine & loading conveyor
Boiler (Co-gen)
15 MT/hr, 45 Kg/cm2 High Pressure Boiler & Turbine 2 MW
1 Generator
Chimney, Wet Bottom System, Valves, Steam Pipeline,
2 Insulation, Cooling Tower, Electrical Panel & Cables
Miscellaneous fixed assets
1 Bore well, Drainage, ETP, STP & Weighbridge
5.5 Facilities proposed in DPC
For collection of paddy from farmers to weighing and transferring to trucks at

DPCs, the following facilities will be made available during procurement days by
the Private Player.

 Conveyor system
 Destoner & Pre-cleaner
 Mobile paddy testing lab
 Weighing scale
 Pneumatic pump
 10 MT Truck
5.6 Facilities Proposed in the Rice Mill
The Rice Mill will be fully integrated with the following facilities:
 Post-harvest dryer of capacity 600 MT/Day

 Bulk carriers to move the paddy from Direct Purchase Centres (DPCs) to the
Rice Mill
 Silos to store up to 60,000 MT of paddy
 Parboiling capacity: 25 MT/hour
 Milling of 500 MT/Day of paddy
 Automatic Packing system
 2.0 MW Husk-based co-generation power plant
 Rice storage godown to store 3500 MT of rice
 Conveyors to move the rice bags from godown to lorries
5.5.1 Post-Harvest Dryer
It is proposed for 600 MT/day dryer to reduce the paddy moisture content to a
safe level for storage. It is the most critical operation after harvesting a rice crop.
It is important to dry paddy grain as soon as possible after harvesting ideally
within 24 hours. Delays in drying, incomplete drying or ineffective drying will
reduce grain quality and result in losses.

It has a hot air blower and furnace to ensure desired drying, and a digital
temperature controller to monitor the drying.
Technical operations
Drying temperature is assumed according to ambient air temperature and the

maximum temperature needed for good quality drying without developing the
stress within the paddy kernel.
Before paddy is fed into dryer, paddy should be pre-cleaned to remove chaffs,
weeds, etc. to prevent uneven drying. If drying temperature is set higher than
normal because of high humidity in rainy days or different grain conditions, there
is a chance of grain cracking. In case of relative humidity under 65%, the
temperature should be lowered to 4-5◦C to prevent grain cracking.
Drying temperature can significantly influence on head rice yield and specific
energy consumption. Furthermore, the relative humidity of air inside the dryer is

always less than that of ambient air since temperature inside the dryer is more
than that of surrounding.
Drying process fundamentally takes place by heat and mass transfer. This
convectional circulating dryer is able to reduce the moisture of the paddy samples
up to 12% from over 22% moisture content.
5.5.2 Silo Storage system
Silos are primarily the large tank type structures either made of steel or concrete
for storage of food grains or other materials in monitored atmosphere. As silos are
tank type high vertical structures, paddy or other materials are stored in bulk
form only. Silo requires mechanized handling for loading and unloading of
material.
Capacity of silo
It is proposed for 20 Nos. of silos with a capacity 3000 MT each along with grain
chillers. The capacity balancing of silos for 500 MT Rice Mill is shown hereunder:

Typical movement of grain in silo
Paddy, once unloaded from the trucks are dried in paddy dryer and then stored in
silo facility. Then, the paddy is loaded in to unloading hoppers.
The temporary storage hopper would despatch the grains into conveyor for pre-
cleaning activities like removal of foreign particles and weighing. Once in the
storage bins, the grain will need to be regularly ventilated. The ventilation is
subject to constant temperature controls through probes to maintain the grain
quality all along the storage period.
To protect the grain from different contamination sources, the grain will be
fumigated by spraying as it passes on the loading conveyors. During dispatch, the
grain will be taken out of each bin by a chain conveyor located in the gallery under
the bins.
The requirement of water for the silo facility would be met by installation of bore
/ tube well at the site. The private player would need to install the bore/tube well
by undertaking suitable ground water depth assessment at the site.
5.5.3 SCADA System
It is proposed to install SCADA system, which can be used to acquire data and
provide overall control remotely from a SCADA Host software platform. The

machineries and software include Personal Computer, Programmable Logic

Controller (PLC), control panels, Motor Control Centre (MCC) panels with
switchgears, Human Machine Interface (HMI), SCADA and sensors.
SCADA Host platforms also provide functions for graphical displays, alarming,
trending and historical storage of data.
Real Time Control and Monitoring System
SCADA is a system of software and hardware elements that allows Rice Mill to:
 Control processes locally or at remote locations

 Monitor, gather, and process real-time data
 Directly interact with devices such as sensors, valves, pumps, motors, and
more through human-machine interface (HMI) software and
 Record events into a log file
SCADA systems are crucial since they help to maintain efficiency, process data for
smarter decisions, and communicate system issues to help mitigate downtime. A
SCADA based centralized control system is as shown in the below figure and the
individual components are briefed below:

SCADA based centralized control system
 Motor Control Centre
A motor control centre (MCC) is an assembly of one or more enclosed sections

having a common power bus and principally containing motor control units.
Motor control centre is a factory assembly of several motor starters that
include variable frequency drives, programmable controllers, and metering.
 Human Machine Interface (HMI)
HMIs act as the gateway for users to control and monitor industrial processes.
HMIs are used to analyse trends, generate reports, control systems and address
any alarms that may arise during Mill operation. The keypad is used to input
data into the application, such as timer values.
 Programmable Logic Controllers (PLC)
The basic SCADA architecture begins with programmable logic controllers

(PLCs). PLCs are microcomputers that communicate with an array of objects

such as factory machines, Human Machine Interface (HMI), sensors, and end
devices and then route the information from those objects to computers with
SCADA software. The SCADA software processes, distributes, and displays the
data, helping operators and other employees analyse the data and make
important decisions.
With real time information, corrections to the process can be made

immediately to maintain and improve yields. Equipment failures, chokes or
changing material characteristics can be detected as they occur and operators
can take appropriate actions to avoid losses.
Benefits of SCADA
 Increased Productivity
 Indication software helps to diagnose the problem, thereby reducing the
downtime
 Consumption of energy and maintenance can be reduced with VFD (variable
frequency drive) & soft starter
 The entire Rice Mill can be controlled from the single place through SCADA.
 Enhanced operator safety.
 Historical trends and report help to meet the demands on time.
 Alarm that helps to diagnose the problem instantly without checking the
whole system
5.5.4 Power Co-generation system
Rice Husk will be used to generate electricity. The characteristics & chemical
composition of Rice Husk has made it easy to use it for electricity generation. 1 MT
of paddy can produce 220 kg of Rice Husk. Using Rice Husk for electricity
generation depends on the availability of raw material and the technology used for
conversion of Rice Husk to energy.
Different types of cogeneration technologies are used depending upon the end use
or purpose. Some commonly used cogeneration technologies are:
 Steam Turbines
 Gas Turbines
 Reciprocating Engines

Steam turbine cogeneration technology is adopted for the proposed project.
Steam turbine cogeneration
In this system, the boiler converts water into high-pressure steam. The steam is
then transported to a steam turbine to generate electricity and then to a
condenser, which is like a vacuum chamber and thus has negative pressure and
converts, or condenses the steam into water. Alternatively, the steam may be
transported to a distribution system that delivers steam at intermediate
temperatures for different applications. The condensate from the condenser or
from the steam utilization system returns to the feed water pump, and the cycle
continues. Most common steam turbines used in a cogeneration system are the
back-pressure type or the extraction–condensing type. Extraction condensing
steam turbine is used in this project.
Extraction steam turbines
In extraction-condensing steam turbines, steam is extracted at one or more

intermediate stages at the required pressure and temperature. The remaining
steam from the turbine is transported to the condenser at very low pressure, as
low as 0.05 bar (5 kPa), corresponding to a condensing temperature of
approximately 33 °C.

Benefits of Rice Husk based cogeneration system
The Rice Husk based co-generation system in Rice Mills will have the following
benefits:
 The system is environmentally friendly, economical and ideal way to

produce power.
 This power generated will be used for internal consumption of the Rice Mill
for their operation where the grid power consumption will be reduced.
 It improves the efficiency of the boiler.
 Reduction in fuel consumption.
 It involves effective utilization of steam, where the super-heated steam is
used for power generation and the exhaust steam is used for paddy
processing.
 Most efficient energy conversion processes with large cost saving potential.

5.7 Installed capacity
The hulling capacity of the Rice Mill is fixed at 500 MT of paddy per day.
Considering 300 working days per annum and 20 hours a day of operation, the
installed hulling capacity at 100% utilization would be 1,50,000 MT per annum.
5.8 Products and by-products
The main product of the proposed Mill is Rice. Husk and Bran are the by-products
generated during the processing of paddy.
The yield of rice and the by-products at 100% capacity i.e., 1,50,000 MT of paddy
per annum and its utilization/value addition is given below:
Product Output % Utilization/Value addition

(TPA)
Rice 102000 68% Rice produced in the Mill
would be of superior
quality. Rice Will be given
to the Family Card holders
through Public Distribution
System (PDS).
Husk 33000 22% The Husk produced will

be used as fuel for boiler
to generate steam.
Balance quantity will be
sold in market.

Product Output % Utilization/Value addition

(TPA)
Bran 10500 7% Bran, the valuable by-
product from the Rice,
contains 20-22% Oil. The
private player would sell
the bran to Oil
extractors. The defatted
bran is used as raw
material by poultry feed
making plants.
Broken 3000 2% The broken rice is used in

rice rice flour Mills,
distilleries, etc and will
be sold in the market.
Invisible 1500 1% - -
loss
150000 100%
5.9 Process and technology
The corporation has proposed for setting up of Modern Rice Mill through PPP mode
for production of parboiled rice. The Rice Mill process is continuous and
automatic, consisting of Parboiling & Drying, Milling and Packing sections. The
process involved in production of parboiled rice is given hereunder:
 Paddy Storage
The raw paddy is received, weighed and dried and stored in the Silos.
Post-harvest dryer
The paddy is fed into the dryer to reduce the moisture of the paddy up to 12%
from over 22% moisture content.
Silo storage

Paddy, after drying in the paddy dryer are stored in the silo facility
 Paddy Pre-Cleaning
The paddy grain from the silos are taken to the paddy cleaner to remove all
impurities and immature grains and are then stored in the raw paddy silos.
 Soaking & Steaming
After pre-cleaning, it is then taken to the soaking & steaming section, where
steam is injected into the raw paddy in the steaming kettle before soaking.
This hastens the soaking process. The hot paddy raises the temperature of the
soak water to 45-50o C which reduces the soaking time. Thereafter, the
soaked paddy is steamed to obtain parboiled paddy.
 Drying
The parboiled paddy is then taken to the drying section, where drying is
performed in the steam heat exchanger to obtain adequate moisture. The
steam from boiler is used for drying the paddy in the dryer. The drying time
will be altered by adjusting the temperature of the dryer until the paddy is
dried sufficiently and it proceeds to the Milling section.
 Cleaning
The dried paddy is then cleaned using classifier and Destoner to make it
completely free from any foreign objects such as stone, sand, straw etc.
 De-husking
In this process, the Husk is removed from the paddy by application of force
through rubber rolls. The shelled paddy is then directed to the Paddy
Separator.
 Paddy Separator
Brown rice is now separated from the unshelled paddy by means of

mechanical equipment. The unshelled paddy will again go back to the Rubber
Sheller and the brown rice is taken to the whitener for polishing.

 Whitening
This stage removes the bran layer (bran) from brown rice. It uses both
abrasion and friction to gently and efficiently convert brown rice to milled
white kernels. The bran layer is separated by air ventilation.
 Grading
This process separates milled rice (mixture of different sizes: Whole grain,
head rice, and broken rice) by a sieve grader that include several sizing
techniques from the broken rice.
 Packing / Storage
The rice is then moved to the Packing Section for packing in different sizes of
gunny bags, which are then weighed, stitched and stored in the rice storage
godown before it is dispatched.
The process flow chart for the production of parboiled rice is given hereunder:

Process flow for production of parboiled rice

5.10 Capacity balancing

5.11 Raw material
The hulling capacity of the proposed Rice Mill is 500 MT per day. Considering 300
working days per annum and 20 hours of operation a day, the installed hulling
capacity at 100% utilization works out to 1,50,000 MT per annum.
TNCSC undertakes procurement of paddy directly from the farmers at Minimum

Support Price through Direct Purchase Centres (DPC).At present, 476 such DPCs are
functioning in Thiruvarur District, which handles around 8-10 lakh MT of paddy in a
year.
The entire requirement of Paddy for milling will be obtained from the DPCs
functioning in the command area by the private player.
As the DPCs are under the ambit of TNCSC, no problem is envisaged in supply of
required quantity of paddy.
5.12 Consumables
Consumables and packing required for the Rice Mill unit include Gunny bags, Yarn
for stitching, Stencilling ink, Rubber rolls, Rubber brakes etc.
All the consumables are locally available. As such, no difficulty is envisaged in

procuring consumables for the proposed Mill.
5.13 Steam and fuel
The steam requirement for each section is envisaged as under:
S. Description Steam Qty (nos.) Total steam

No. requirement requirement
(kg/hr) Kg/hr
1. Post-harvest 2100 4 8400
dryer
2. Gel cook station 195 8 1560
3. Process dryer 1050 3 3150
4. Hydration tanks 210 6 1260
5. Hot water tanks 150 3 450
Total steam requirement 14,820

Considering the above, the capacity of the boiler is fixed at 15 TPH.
In order to generate 1 TPH of steam, 200 kgs of Husk is required. Accordingly, to

generate 15 MT of steam, 3000 kgs (i.e.,) 3 MT of Husk is required. Considering 20
hrs of operation in a day, the Husk requirement is estimated at 60 MT per day,
which is proposed to be met from in-house generation.
The in-house generation of Husk per day from the Mill is as below:
Quantity hulled per day 500 MT

Husk yield 22%
Husk available 110 MT
5.14 Power
S. No Description Connected load

(KW)
1. Boiler including turbine generator 350
2. Silo section 500
3. Dryer and Parboiling section 300
4. Milling section including compressor 800
5. General lightings & other equipment 50
Total 2000
Say 2.0 MW
It is proposed to have a Rice Husk based co-generation plant of 2 MW capacity.

Considering a Plant Load factor (PLF) of 75%, 1.50 MW of power could be generated
from co-generation plant and the balance would be availed from TANGEDCO.
5.15 Water
The total water requirement for operation and potable purposes is estimated at
625 KLD. It includes boiler makeup water requirement of 150 KLD (after recovery
through condensate recovery system), 430 KLD for paddy processing and 45 KLD
for domestic consumption. Out of the total requirement, about 200 KLD will be
recycled water and 475 KLD would be fresh water and the same is shown in the
figure below:

Water Requirement for the proposed Mill
The entire quantum of water would be sourced from the bore wells/ tube wells
that are to be sunk at the project site.
The figure below shows the process detail of a Rice Mill and waste water 1, 2 and 3
that contributes for the combined effluent is shown hereunder:

5.16 Effluent Treatment Plant
Effluent Treatment Plant (ETP) is proposed to treat the effluent discharged during
the process of soaking.
The liquid effluent after absorption during soaking process is estimated to be 260
KLD. Accordingly, capacity of the ETP is fixed at 260 KLD.
The technology is based on combination of both anaerobic (Up flow Aerobic Sludge
Blanket Reactor Technology) and aerobic treatment (Moving Bed Biofilm Reactor
Technology), which is considered most suitable for Rice Mill effluent. The treated
water would be used for flushing & gardening purposes. The process flow of
Effluent Treatment Plant is shown hereunder:

Process flow chart of Effluent Treatment Plant

Characteristics of the Raw Effluent and Treated Water Parameters
S. Description Unit Raw Treated Water RO –

No Effluent Parameters after Product
Primary Treatment Water
and Reject of RO Parameters
System
1. PH@25oC - 6.5 to 6.5 to 8.5 6.5 to 8.5
8.5
2. Total dissolved solids Mg/l <500 <2100 <2100
3. Total suspended Mg/l <1000 <20 BDL
solids
4. Oil & Grease Mg/l <100 <10 BDL
5. Chemical oxygen Mg/l <3000 <250 BDL
demand
6. Bio Chemical Oxygen Mg/l <1000 <30 BDL
Demand (BOD) (3
days incubation at
27oC)
7. Temperature °C <70 Ambient Ambient
5.17 Manpower
Since the project is to be implemented under PPP model, the private player is
responsible for the deployment of manpower. The manpower requirement for the
proposed facility is envisaged as under:
For DPC
S. No Particulars Manpower requirement
Per DPC (Nos.) For 25 DPCs
(Nos.)
1. Supervisor 1 25
2. Lab technicians 1 25
3. Asst. lab technicians 2 50
4. Weighment 2 50
5. Helpers 2 50
Total 8 200

For Mill
S. No Particulars Manpower
requirement (Nos.)
1. General Manager 1
2. Manager (Technical, Accounts) 2
3. Manager (Admin, Marketing) 2
4. Shift Engineers 3
5. Maintenance Engineers 3
6. Operators 42
7. QC Lab technician 3
8. Asst. QC lab technician 3
9. Electrician 3
10. Helpers 60
11. Admin staff 5
12. Store Keeper 3
13. Security 15
Total 145
The district boasts disciplined labour force and good work culture. As such, the
private player shall face no difficulty in sourcing the adequate work force for
operating and managing the Mill.
5.18 Statutory Approvals
The following statutory approvals are required for the proposed Rice Mill:
Before Commencement of the project
 Panchayat Union approval

 DTCP approval for layout and Factory Buildings
 Consent to establish from Tamil Nadu Pollution Control Board (TNPCB)
 Consent to establish from Tamil Nadu Fire & Rescue Services
 Approval from Inspector of Boilers
 Approval from DISH
 Approval from Electrical Inspectorate
 Approval from Health Department
After Commencement of the project

 Consent to operate from Tamil Nadu Pollution Control Board (TNPCB)

 Consent to operate from Tamil Nadu Fire & Rescue Services
 Approval from Inspector of Factories
 Approval from Labour Inspectorate

5.19 Tentative implementation plan
The project would be implemented in 18 months’ time as shown below:
Activity Duration in months

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Land acquisition
Approval of Statutory clearances
Start of land filling / levelling
Construction of building
Plant and machinery
Supply, erection & commissioning of
plant and machinery
Trial Run
Commercial production

6 Environment Impact Assessment

There are several important environmental concerns associated with Rice Milling.
The Rice Mill effluents carry high load of suspended and dissolved organic matters
causing environmental pollution. The effluent at each process of Rice Milling is
shown hereunder:
Rice Mill effluents
Environmental Impact Page 71 of 121

6.1. Solid waste disposal and management
The disposal of solid waste, which includes the Husk from the paddy as well as
other waste generated from the cleaning process is the major environmental
problem associated with Rice Milling.
Mill wastes such as ash and burnt Husk pollute the surrounding environment, land
and waterbeds. The effluent while dumped into environment causes water and
land pollution leading to several health problems. Dust from air pollution affects
human’s respiratory system directly.
These wastes were dumped on the Mill premises and lot of space was wasted,
which could otherwise be utilized for productive purposes; reported closing down
of some Rice Mills for keeping Rice Husk in open area giving rise to pollution
nuisance for nearby residents and violating norms and regulations and those Mills
have no closed shed for Rice Husk storage.
Rice Husk in Mill house
Mitigation measures

To prevent the pollution caused from the solid waste, about 55% of the Husk
produced will be used as fuel for boiler to generate steam and the balance will be
sold in the local market.
6.2. Water effluent and management
Parboiled rice production generally requires large amount of water for soaking of
the paddy. This water, if not properly treated, could result in water pollution and
odour nuisance to residents. Water pollution can be caused by surface water
runoff, which may contain high levels of organic material.
Also, effluent produced during cleaning of equipment may cause water pollution.
Hence, treatment of water and effluent before discharge is necessary.
Waste water after parboiling process
The volume of water required to process per kg of paddy is 1.0 to 1.50 L and the
source of wastewater will be by way of discharge from parboiling unit. The volume
of wastewater generated is 0.40 to 0.52 L per kg of paddy processed.
It is important to remove the concentration of organic and in-organic compound,

because some of the constituent compound found in industrial wastewater is toxic
to microorganism, pre-treatment may be required before the industrial
wastewater can be discharged to a municipal collection system.

Characteristics of waste water
S. No. Parameters Average

1 Colour Yellowish brown
2 Odour Foul
3 pH 7.5
4 Temperature (0°) 45
5 Alkanity (mg/L) 310
6 Total solids (mg/L) 1100
7 Total V solids 700
8 BOD (mg/L) 1200
9 COD (mg/L) 1350
10 BOD/COD ratio 0.8
The characteristics of wastewater show that wastewater is highly biodegradable as

is seen from COD/BOD ratio (0.8). However, it is high in odour and coloured, needs
treatment before disposal.
The Rice Mill effluents carry high load of suspended and dissolved organic matters
causing environmental pollution.
Mitigation measures
The waste water generated during the paddy soaking process will be treated using
Effluent Treatment Plant (ETP). An ETP of capacity 420 KLD is proposed to treat
the waste water from Rice Mill.
Hence, the dangerous effects from contaminants like pH, total solids, dissolved
solids, TSS, COD, BOD, etc can be greatly reduced by setting up ETP in Rice Mill.
6.3. Air pollution and management
The fly ash disposal emitted from the Rice Mills would contaminate the ground
water, surface water and soil in the nearby areas and the surroundings.

The emission standards set by TNPCB for Boilers small is as follows:
Steam generation capacity Particulate matter emission

(MT/hour) (mg/Nm3)
Less than 2 1200*
2 to less than 10 800*
10 to less than 15 600*
15 and above 150**
(Source: CPCB PCLS/02/2010 Sixth edition)
*To meet the respective standards, cyclone/multicyclone is recommended as

control equipment with the boiler.
**To meet the standards, bag filter/Electrostatic Precipitator (ESP) is

recommended as control equipment with the boiler
The emission standards set by TNPCB for Rise Husk Boilers is as follows:
Source Standards
Step grade – Particulate matter 250 mg/Nm3
Horse shoe/Pulsating grate – Particulate 500 mg/Nm3 (12% of CO2)
matter
Spreader stroker – Particulate matter 800 mg/Nm3 (12% of CO2)
(Source: CPCB PCLS/02/2010 Sixth edition)

Chimney with a wet bottom system will be used for arresting the fly ash emissions.
Additionally wet scrubber will be added to ensure effective removal of fly ash.
Mitigation measures
Wet Scrubbers are effective air pollution control devices for removing particles
and/or gases from industrial exhaust streams. A Wet Scrubber operates by
introducing the dirty gas stream with a scrubbing liquid-typically water.
Particulate or gases/wet scrubbers are generally the most appropriate air pollution
control device for collecting both particulate and gas in a single system.
With the above mitigation measures, the proposed Mill will comply with TNPCB
norms.

7 Legal Framework
7.1. Public Private Partnership model – An overview
Public Private Partnership (PPP) means an arrangement between Government or

statutory entity or Government owned entity on one side and a private sector
entity on the other, for the provision of public assets and/or related services for
public benefit, through investments being made by and/or management
undertaken by the private sector entity for a specified period of time, where there
is a substantial risk sharing with the private sector and the private sector receives
performance linked payments that conforms to specified, predetermined and
measurable performance standard.
Benefits of PPP model
There are various models used in PPP projects in India and the same is listed
below:
 Design-Build (DB)
 Design-Build-Operate (DBO)
 Design -Finance-Build -Own-Operate (DFBOO)
 Build-Operate-Transfer (BOT)
 Design-Build-Own-Operate-Transfer (DBOOT)
Legal Framework Page 77 of 121

 Build-Own-Operate (BOO)
The project is proposed to be implemented on Design, Build, Finance, Own &

Operate (DBFOO) model under Public Private Partnership (PPP) mode.
7.1.1 Design, Finance, Build, Own, Operate (DFBOO) model
 Land will be provided by the private player

 The entire responsibility of designing, building, financing, operating &
maintaining the Mill will be vested with the private player
 Paddy will be made available by TNCSC through the DPCs present in the
District. The private player has to hull it and hand over 68% rice for the
quantity of paddy.
 The by-products viz. Husk, Rice Bran and broken rice will be taken by the
private player, which in turn could be sold in local markets.
 The private player shall be paid service charges and operate for a pre-
specified period (concession period).
 The concession period is primarily determined on the quantum of revenue
yield of the private player and as well as the reasonable rate of return for
its effort and risk
 The Rice Mill will be allowed to lift paddy only from TNCSC.
7.2. Allocation of responsibilities
PPP Ownership Capital O&M Assumption Duration of

Model of land Investment of risks contract
DBFOO Private Private Private Private 20 years from
Model player player player player the
appointed
date

7.3. Process flow for PPP project
Process flow chart for PPP project

7.3.1. Proposed project implementation structure
The project shall be awarded to private player by following two stage transparent
bidding process.
The indicative project implementation structure under PPP mode is as follows:
Project implementation structure

8 Risk Assessment
The various risks associated with the project have been analysed and they have
been allocated to both TNCSC and Private Player. The following matrix explains
each of the risk and its allocation.
Risk Assessment TNCSC Private Mitigation Measures

Player
Project cost Indigenous Rice Mill No Risk By taking forward

escalation machinery is not Risk exchange cover, the
available for the Private Player can
proposed capacity of wade through the risk
500 MT/day and of cost escalation.
large proportion of
machineries has to
be imported.
Upward movement
of dollar will result
in project cost
escalation.
Downward The viability of the No Risk By entering into long-

trend in the project largely Risk term contract with
prices of Bran depends on the Rice Bran Oil Mills, the
and Broken selling price of by- Private Player shall
products viz. Rice minimize the risk.
Bran and Broken.
The price of Rice
Bran is often
witnessing
fluctuations due to
the volatile scenario
in edible oil market.
Availability of The Mill requires Risk No Risk The analysis of rice

paddy around 1.5 lakhs MT production data reveals
of paddy per annum. that at least one
The availability of season of production
paddy largely i.e. Kuruvai or Samba is
depends on happening even in
cultivation in the distress years. In the
Risk Assessment Page 81 of 121

Risk Assessment TNCSC Private Mitigation Measures

Player
Cauvery delta last 4 years, the

region. The poor minimum procurement
inflow of water in is recorded at about 15
the Cauvery river lakh MT and maximum
shall affect the at 45 lakh MT. Further,
production and installation of Silos
availability of paddy. with 60,000 MT
capacity can supply
paddy for about 5
months and sustain the
operations one season.
Change of Currently, TNCSC is Risk No Risk In such a scenario,

Policy by Food procuring the paddy TNCSC may exit from
Corporation of as an agent of FCI. PPP agreement by
India (FCI) for Any changes in paying one-time
the procurement policy compensation to the
procurement will come in the way Private Player.
of Paddy of TNCSC’s ability to Further, Non-
supply the required procurement by TNCSC
quantity of paddy. will enable the Mill to
procure directly from
the farmers and sustain
the operations.
Risk Assessment Page 82 of 121

9 Financial Aspects
9.1. Project Cost
The total project cost works out to ₹18,887.57 lakhs as shown below:
S. No. Components Cost

(₹ in lakhs)
1. Land 600.00
2. Building and civil works 4,244.67
3. Plant and machineries 12,244.07
4. Contingencies @5% 824.44
5. Preliminary expenses 194.27
6. Pre-operative expenses 587.49
7. Working capital margin 192.63
Total Project Cost 18,887.57
9.1.1. Building & Civil works
The cost of the building and civil works is estimated at ₹4,244.67 lakhs and the
details of the cost estimates are given in Annexure - I.
9.1.2.Plant & Machineries
The cost of Plant & Machineries is estimated at ₹12,244.07 lakhs and the details
of the cost estimates are given in Annexure - I.
9.1.3.Contingencies
The contingencies are considered at 5 percent on cost of buildings & civil works
and plant & machineries. The amount works out to ₹824.44 lakhs.
9.1.4.Preliminary & Preoperative Expenses
The cost estimates for preliminary & preoperative expenses are as given
hereunder:
Financial Aspects Page 83 of 121

Preliminary expenses
Report fee 20.00
Provision for soil investigation etc. 1.50
Processing charges 122.77
Land identification & legal charges 50.00
Total 194.27
Pre-operative expenses
Deposit to TANGEDCO: at Rs.2000 per kVA 40.00
Trial Run Expenses 2.00
Interest During Construction (IDC) 542.49
Total 587.49
9.1.5.Woking capital Assessment
Working capital requirement has been assessed based on the following assumption:
Details Days
Consumables 60
Labour and Supervision 30
Receivables 30
The working capital gap for the first year of operation works out to ₹767.63 lakhs.
The eligible bank finance for Working Capital works out to ₹575.00 lakhs. The
working capital margin works out to ₹192.63 lakhs.
The increase in working capital margin in the subsequent years of operations shall
be met by internal generation. The details are provided in Statement 5.
9.2. Means of Finance
The project is proposed to be financed as under:
Equity 6,610.65
Term loan 12,276.92
Total 18,887.57

9.2.1 Equity contribution
An amount of ₹6,610.35 lakhs (35% of the project cost) is proposed to be

brought in by way of equity contribution.
9.2.2 Term Loan
An amount of ₹12,276.92 lakhs (65% of the project cost) is proposed to be met

by way of Term Loan.

10Financial Viability
10.1. Production & Profitability
The cost of production and profitability projections are provided in Statement - 4.

The assumptions underlying the profitability projections are as mentioned below:
Working days per annum 300

Installed capacity per day 500 MT
Capacity utilization
Year 1 75%
Year 2 onwards 80%
Yield
Rice 68%
Husk 22%
Bran 7%
Broken 2%
Invisible loss & refractions 1%
Sales realization
Service Charges ₹4,250 per MT of paddy and 2.50% increase in every
subsequent year
Bran ₹17,900 per MT and 2.50% increase in every subsequent
year
Broken ₹12,270 per MT and 2.50% increase in every subsequent
year
Husk ₹ 3,000 per MT and 2.00% increase in every five years
The selling price of by-products is considered based on the average auction rates of TNCSC
In house husk consumption
Capacity of boiler 15 MT/hr
Husk requirement for boiler 200 kg
per MT of steam generation
Husk requirement per day 60 MT
Cost of Production
Handling charges at DPC ₹75 per MT of paddy and 5% increase in every subsequent
year
Cost of transportation from ₹850 per MT of paddy and 5% increase in every subsequent
DPC to Mill year (up to 30 km)
Fumigation charges ₹50 per MT of paddy and 5% increase in every subsequent
year
Financial Viability Page 86 of 121

Cost of consumables and ₹275 per MT of paddy and 5% increase in every subsequent
spares year
Cost of contract labour ₹150 per MT of paddy and 5% increase in every subsequent
year
Cost of TNEB power ₹6.35 per unit and 5% increase in every 3 years
Cost of Genset power ₹20 per unit and 5% increase in every subsequent year
Demand charges ₹350 per KVA per month
Cost of manpower ₹753.26 lakhs per annum and 5% increase in every
subsequent year
Cost of ETP 260 KLD
~Capacity ₹250 per KL for 1st year and 5% increase in every
~Cost subsequent year
Repairs and maintenance 3.50% of plant and machinery cost and 5% increase in
every subsequent year
Preliminary expenses (w/o) 10% per annum
Administrative expenses 5.00% of sales realisation
Interest on term loan 10.50% per annum
Depreciation Straight line depreciation is considered for profitability
estimations and WDV depreciation is considered for IT
purpose
10.2. Term Loan
The interest rate on Term Loan is considered at 10.50% per annum and the
repayment period is considered as 10 years excluding a moratorium period of 12
months. The details are given in Financial Statement - 8.
10.3. Projected Cash Flow Statement
The projected cash flow statement is given in Financial Statement -11.
10.4. Projected Balance Sheet
The projected balance sheet is given in Financial Statement - 12.
10.5. Debt Service Coverage Ratio (DSCR)
The average DSCR for the proposed repayment schedule works out to 1.66, which
indicates that the term loan serviceability is good. Details are given in Financial
Statement - 13.

10.6. Break-even Analysis
The project is expected to break even at 92%, 83% and 80% of the capacity
utilization for the 1st, 2nd and 3rd years of operations respectively. The cash break
even works out to 50%, 44% and 42%. The break-even level is considered
reasonable. The details are given in the Statement - 14.
10.7. Net Present Value & Internal Rate of Return
The Net Present Value (NPV) of the project works out to ₹12,154.91 lakhs (at 7%
discount rate) and the Internal Rate of Return works out to 15.76%, which may be
considered as satisfactory. The details are given in the Financial Statement - 15.
10.8. Equity Internal Rate of Return (Equity IRR)
The equity IRR for the project works out to 21.03%. The details are given in
Financial Statement – 16.
10.9. Benefit cost Ratio (BCR) and Economic Rate of Return (ERR)
The proposed project will facilitate the accrual of the following benefits:
 Reduction in wastage of paddy

 Increase in head rice yield
 Increase in realization from by-products
 Savings from transportation cost of paddy
Due to installation of facilities viz. post-harvest dryer and Silo storage systems,
there will be reduction in wastage of paddy, increase in head rice yield and
increase in realization from by-products.
Further, the paddy collected from farmers at DPCs will be moved directly to
Silos at MRM resulting in savings from transportation cost. At present, the paddy
collected at DPCs is transported to storage godowns and again from godowns to
Mills.
Accordingly, the Benefit to Cost Ratio (BCR) works out to 3.25 and Economic
rate of Return (ERR) works out to 28.11%. The details are given in the Financial
Statement – 17.

10.10. Savings to TNCSC and Public
Implementation of the Mill will entail benefits to TNCSC & Public on the
following counts:
Reduction in wastage of paddy
It is estimated that atleast 15% of the paddy is wasted or spoiled due to lack of
adequate drying and storage facilities. Implementation of the project will pave
the way for reducing the wastage / spoilage of paddy to an extent of 22,500 MT
per annum (15% of 1,50,000 MT). At the current cost of procurement, the
savings to TNCSC works out to ₹45.34 crores per annum.
Improvement in quality of rice
Lack of drying & storage facilities result in deterioration of paddy which leads to
poor quality of rice and by-products. Implementation of the project will pave
the way for supply of quality rice to PDS thereby the perception on PDS rice.
Availability of quality bran to Rice Bran Oil Mills
Due to lack of proper storage facilities and obsolete technology on machinery,

the quality of Rice Bran obtained is of poor quality. The Rice Bran Oil Mills in
Tamil Nadu are facing shortage of quality Rice Bran and are sourcing from
neighbouring states incurring higher transportation costs. The proposed project
will facilitate supply of quality Rice Bran to the tune of 10,500 MT per annum

11Conclusion
Based on the foregoing analysis and financial projections envisaged, the following
observations are made in respect of the Techno Economic Feasibility of
establishing 500 MT/day Integrated Modern Rice Mill in Thiruvarur district on
DFBOO basis under PPP mode:
1. TNCSC procures around 8-10 lakh MT of paddy annually in the District and
hulls it through its own Mills and hulling agents.
2. Substantial quantity of paddy gets spoiled / wasted besides deterioration of

quality due to lack of post-harvest drying and adequate storage facilities.
3. The proposed Integrated Modern Rice Mill is expected to address the most
important issue of Post-harvest and storage losses besides improving quality
of the rice and by-products.
4. As part of project, the Private Player has to install modern systems for
measuring weight and moisture level of paddy at the DPCs. This will ensure
transparency in weighment and payment to the farmers.
5. The proposed Silo system is found to be cost effective both in terms of

capital cost & operating cost as compared to the conventional warehouse
storage system.
6. The Mill is proposed to be established on PPP basis under Design, Finance,

Build, Own and Operate (DFBOO) model with a concession period of 20
years.
7. The entire activities involved from procurement at District Purchase Centres

(DPCs) to loading of rice are proposed to be transferred to the private
player.
8. Implementation of the Mill will entail benefits to TNCSC & Public on the
following counts:
 Savings from reduction in wastage of paddy to the tune of ₹45.34

crores per annum
Conclusion Page 90 of 121

 Improvement in quality of rice and by-products

 Availability of quality bran to Rice Bran Oil Mills
9. In the proposed PPP model, the viability indicators viz. DSCR, IRR, NPV,
Equity IRR and the economic indicators viz. ERR & BCR are working out at
acceptable levels.
Therefore, ITCOT is of the opinion that is technically feasible, economically

viable and operationally sustainable to implement the Rice Mill project on
DFBOO basis under PPP mode.
Conclusion Page 91 of 121

Financial
Statements

Setting Up of 800 TPD Modern Rice Mill at Thiruvarur District DPR Moder Sg3FMs2 2

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Detailed Project Report on setting up of 500 TPD Modern Rice Mill

at Thiruvarur District under PPP mode

Tamil Nadu Civil Supplies Corporation (TNCSC)

TNCSC procures around 40,00,000 MT of paddy annually and hulls it through

S.No. Particulars Total

In order to address the above issues, it is considered essential to establish an

The following activities, which are presently handled by TNCSC will be

Product/ By- Production Utilization/Value Addition

TNCSC undertakes procurement of paddy directly from the farmers at

All the consumables are locally available. As such, no difficulty is envisaged

S. Description Steam Qty (nos.) Total steam

In order to generate 1 TPH of steam, 200 kgs of Husk is required. Accordingly,

Quantity hulled per day 500 MT

The liquid effluent after absorption during soaking process is estimated to be

After Commencement of the project

S.No. Components Cost

Means of The project is proposed to be financed as under:

Revenue Model  Service charges to be paid by TNCSC per MT of paddy handled

Tamil Nadu Civil Supplies Corporation, popularly known as “TNCSC”, a State-owned

Preamble Page 1 of 121

Preamble Page 2 of 121

2.1 Functions of TNCSC

The main functions of the Corporation are given hereunder:

 Procurement of paddy from farmers through direct purchase centres under

About TNCSC Page 3 of 121

2.2 Organisation chart of TNCSC

About TNCSC Page 4 of 121

TNCSC is governed by the Board of Directors consisting of senior IAS officers

2.3 Activities and services

2.3.1 Paddy Procurement

The specifications prescribed by Government of India for the procurement of

About TNCSC Page 5 of 121

Paddy variety GOI’s MSP Incentive by Govt. Price paid to

Paddy procurement details for Kharif Marketing Season (As on 31.7.2021)

KMS No. of Grade A Common Total Total rate per No. of

2.3.2 Rice Milling

About TNCSC Page 6 of 121

2.3.3 Other services

Amma Cement Supply scheme

Sale of Amma salt

Sale of Ooty tea and Tantea

Issue of commodities to Amma Unavagam

Government of Tamil Nadu has implemented “AMMA UNAVAGAM” Scheme from

About TNCSC Page 7 of 121

2.4 Infrastructure and Assets

About TNCSC Page 8 of 121

Asia-Pacific region is identified to be the largest market for rice globally.

Source: Food and Agriculture Organization, 2020

Market Assessment Page 9 of 121

3.2 Indian Rice Market

Source: Food and Agriculture Organization, 2020

3.2.1 Production scenario

Market Assessment Page 10 of 121

S. No State 2017-18 2018-19 2019-20

S. No Country Quantity in MT Value (₹ in lakhs)

Market Assessment Page 11 of 121

S. No Country Quantity in MT Value (₹ in lakhs)

Source: APEDA, 2020-21

Market Assessment Page 12 of 121

Consumption of rice for the past five years

3.2.4 Existing gaps in Rice Mill industry

As a result, the thin line of rice self-sufficiency experienced by many countries is