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PERFORMANCE ASSESSMENT OF
ALCOHOL INDUSTRY
IN UTTAR PRADESH
DR. YASHPAL SINGH
CHIEF ENVIRONMENT OFFICER
2. Er. R.K.Bajaj,
Environmental Engineer
2
The Study Team (… contd.)
Excise Department
Govt. of Uttar Pradesh.
For providing valuable data
4
BENEFITS OF PUBLIC DISCLOSURE
5
PRACTICED AS
• Involuntary – Media Exposures, Notices, PIL Etc.
• Mandatory – The Regulatory Mechanism like consents
DRIVERS
• Transparency
7
•INSTITUTIONAL MECHANISM
- CENTRAL POLLUTION CONTROL BOARD
- STATE POLLUTION CONTROL BOARDS
• INCENTIVES / DISINCENTIVES
- FINES
- BANK GUARANTEES
- CESS REBATE
- CONSENT VALIDITY
- LOCATION
- CLOSURES
- PROSECUTION
8
Environmental Performance Rating
A Pioneering Initiative
U.P. Pollution Control Board, in a pioneering initiative
is making efforts to change the paradigm of the way
Pollution Control is commonly understood.
Dispel the notion that, Pollution Control is an end of
process, cost-intensive, loss-making effort.
Rather, environmental management and pollution
control means harmonizing resources, process and
outputs.
9
Objectives of this Study
To place a Mirror before the industry in the
form of Environmental Performance Rating to
make them aware about their strengths and
weaknesses as also the opportunities &
threats, so as to enable self-correction and
continual improvement in their
environmental performance.
To encourage pro-active role by the Industry
to improve its Environmental Performance
through benchmarking.
10
Significance of Alcohol Industry
Downstream unit of Sugar Industry- Synergy with
Sugar & Paper
Utilising wastes (Molasses) to produce Alcohol, an
essential input of the Chemical & Pharmaceutical
Industry and a product for human consumption.
Alcohol – great potential for use as Fuel for
automobiles – GASOHOL.
But, also known for discharging highly polluted
effluents and is included in ‘Schedule-1’ of Water
Cess Act. An EIA is a pre-requisite before setting up
of any unit or expansion thereof.
(Contd…….)
11
Significance of Alcohol Industry
(…. Contd.)
Significance in U.P.
Alongwith sugar, the largest value enhancer to
agricultural produce.
Contributes a significant part of State GDP – next
only to Trade Tax.
Major catalyst of Employment in the Primary &
Secondary Sectors.
Unfortunately, also amongst the most polluting
industries.
Over 10 MT of BOD load per day into the river
systems of the State.
12
Alcohol Industry in Uttar Pradesh
and Uttaranchal – a profile
No. of Distilleries in U.P. & Uttaranchal - 43
No. of Operational Distilleries - 37
No. of Molasses Based Distilleries - 35
No. of Grain Based Distilleries - 02
Units not operated in 2000-01 - 02
Total Annual Production Capacity
of the Operational Distilleries - 6,79,777 KL
Alcohol Production during 2000-01 - 4,32,489 KL
13
Analytical Framework and
Methodology
The basic hypothesis for this environmental
performance rating exercise has been:
Optimal resource utilisation and improved
production processes are likely to result in better
environmental performance.
Minimal but conscious efforts can result in
achieving the environmental norms.
Therefore, the framework of the rating has three axes:
Plant performance
Regulatory compliance &
Environmental initiatives
(Contd…...)
14
Analytical Framework and
Methodology ( …. Contd.)
The study is based on data obtained from –
The industry
Excise Department
U.P. Pollution Control Board
The study is diachronic & covers a span of three (3)
years:
1998-99, 1999-2000 & 2000-01 and includes trend of
Performance
(Contd…...)
15
Analytical Framework and
Methodology (…….Contd.)
Evaluation parameters identified.
Basic data obtained from Industry on a customized
questionnaire.
The Data received analyzed and clarifications obtained
from the units, as required.
Consultants’ team visited Eight (8) Distillery units,
selected on geographical location and size, to verify
credibility of the reported data on a sample basis.
Feedback taken from Senior Technical officers of UPPCB,
during a series of presentations.
Authentication of the data, considered for calculating the
environmental parameters, obtained from the top
management of the distillery units.
(Contd…...)
16
Analytical Framework and
Methodology (…….Contd.)
Environmental parameters calculated for various units
from the authenticated data obtained.
Latest (2000-01) performance & Trend analyzed.
The two grain based units separately analyzed.
Two (2) molasses-based units- one started in 2000-01 and the
other not worked during the year 2000-01, excluded.
Draft Report prepared and presented to the industry in
an “Open-house (05.02.02)” for feedback, after which
the final report with ratings, prepared.
Individual units informed about their environmental
performance scores as well as the potential for cost
savings through improvement - “Action Plans
requested”
17
The Environmental Performance
Criteria & Weightages
Plant Level Performance (40%)
% utilization of installed production capacity (2+1)
Raw Material, MT per KL Alcohol(5+1)
Alcohol Recovery, Ltrs. Per MT TRS (3+1)
Water Consumption, KL per KL Alcohol(10+1)
Total Energy, GJ per KL Alcohol(4+1)
% Renewable out of the Total Energy(4+1)
Net External Energy, GJ per KL Alcohol(5+1)
(Contd…..)
18
The Environmental Performance
Criteria & Weightages (……Contd.)
Regulatory Compliance Status (5%)
‘Consent’ – Water (2000) obtained from UPPCB
(5 for yes, 0 for no)
‘Marginal’/’Heavy’ Default (without dilution)
- UPPCB’ internal norms
- Negative Marking (Heavy –5; marginal –2)
(Contd…..)
19
The Environmental Performance
Criteria & Weightages (……Contd.)
Corporate & Environmental Management
Aspects (55%)
ISO 14001 E M S (10 for yes; 0 for no)
Completeness of ETP(10)
Effluent Disposal Practice - Stream/Land or
Conversion into Bio-compost (10)
Spent Wash generated, KL per KL Alcohol(10)
Biogas generation, Nm3 per KL Spent Wash(15)
Dilution Factor (-10)
20
Environmental Performance Evaluation
Plant Level Performance
Capacity Utilisation
• Minimum - 2.90% No. of Units with negative
performance compared to modal
• Maximum - 105.15% value – 19
• Average - 64.56%
• Mode - 73.50
Capacity Utilisation,%
9
8
8
7
7
6
6
No. of Units
5
5
4
3
3
2
2
1 1
1
0
2.90 - 15.68 15.68 - 28.46 28.46 - 41.24 41.24 - 54.03 54.03 - 66.81 66.81 - 79.59 79.59 - 92.37 92.37 -
105.15
Range
21
Plant Level Performance
Capacity Utilisation – The Top & Bottom Five Units
The Top Five (5) units are:
22
Plant Level Performance
Molasses Consumption, MT/KL Alcohol
• Minimum - 4.53
• No. of Units with negative
Maximum - 6.28 performance compared to modal
• Average - 4.97 value – 14
• Mode - 4.97
12
10 10
10 9
No. of Units
2 1 1 1 1
0
0
4.53 - 4.75 4.75 - 4.97 4.97 - 5.19 5.19 - 5.40 5.40 - 5.62 5.62 - 5.84 5.84 - 6.06 6.06 - 6.28
Range
23
Plant Level Performance
Molasses Consumption - The Top & Bottom Five Units
The Top Five (5) units are:
12
10
8
6
4 4
4
2 2
2 1 1 1
0
379.40 - 399.08 - 418.75 - 438.42 - 458.09 - 477.76 - 497.43 - 517.11 -
399.08 418.75 438.42 458.09 477.76 497.43 517.11 536.78
Range
25
Plant Level Performance
Recovery of Alcohol - The Top & Bottom Five Units
The Top Five (5) units are:
26
Plant Level Performance
Water Consumption, KL / KL Alcohol
• Minimum - 14.69
• No. of Units with negative
Maximum - 512.88 performance compared to modal
• Average - 125.22 value – 20
• Mode - 94.75
Water Consumption,KL /KL Alcohol
16
14
14
12
10
No. of Units
10
6
4
4 3
2 1 1
0 0
0
14.69 - 76.96 76.96 - 139.24 139.24 - 201.51 - 263.79 - 326.06 - 388.33 - 450.61 -
201.51 263.79 326.06 388.33 450.61 512.88
Range
27
Plant Level Performance
Water Consumption- The Top & Bottom Five Units
28
Plant Level Performance
Total Energy Consumption in GJ/KL Alcohol
• Minimum - 10.17 No. of Units with negative
• Maximum - 123.56 performance compared to modal
• Average - 26.04 value – 18
• Mode - 18.32
Total Energy Consumption, GJ /KL Alcohol
25 23
20
No. of Units
15
10
6
5
1 1 1 1
0 0
0
10.17 - 24.34 - 38.51 - 52.69 - 66.86 - 81.04 - 95.21 - 109.38 -
24.34 38.51 52.69 66.86 81.04 95.21 109.38 123.56
Range
29
Plant Level Performance
Total Energy Consumption - The Top & Bottom Five Units
The Top Five (5) units are:
30
Plant Level Performance
Total Renewable Energy % of Total Energy
• Minimum - 7.92
• No. of Units with negative
Maximum - 100.00 performance compared to modal
• Average - 79.51 value – 17
• Mode - 93.42
Renewable Energy %
25
20
20
No. of Units
15
10
5
5
2 2 2
1 1
0
0
7.92 - 19.43 - 30.94 - 42.45 - 53.96 - 65.47 - 76.98 - 88.49 -
19.43 30.94 42.45 53.96 65.47 76.98 88.49 100.00
Range
31
Plant Level Performance
Total Renewable Energy- The Top & Bottom Five Units
The Top Five (5) units are:
32
Plant Level Performance
Net External Energy in GJ / KL Alcohol
• Minimum - 0.00
• No. of Units with negative
Maximum - 123.56 performance compared to modal
• Average - 17.70 value – 21
• Mode - 9.44
20
No. of Units
15
10 8
5
1 1 1
0 0 0
0
33
Plant Level Performance
Net External Energy - The Top & Bottom Five Units
The Top Five (5) units are:
34
Regulatory Compliance
Consent Water Molasses Grain
Based Based
• Consent Granted - 17 02
• Consent Not Granted - 16 -
Water Consent
20 19
18 16
16
No. of Units
14
12
10
8
6
4
2
0
Granted Not Granted
35
Regulatory Compliance
Default Status (without dilution)
• Heavy Default - 22
• Marginal Default - 11
• Zero Discharge - 02
25 22
No. of Units
20
15 11
10
5 2
0
Heavy Default Marginal Default Zero Discharge
36
Environmental Management
Completeness of ETP
• In 2 Units, Primary (Biogas generation) stage
not functional. In other 3 units, biogas not
monitored & not consumed.
• 16 Units do not have the Second Aerobic Stage
of the Secondary Treatment
• 2 Units are converting the entire effluent into
Bio-manure
• 8 Units have started partly converting the
effluent into Bio-manure
37
Environmental Management
Spent Wash Generation in KL/KL Alcohol
• Minimum - 10.87
• No. of Units with negative
Maximum - 38.34 performance compared to modal
• Average - 15.48 value – 16
• Mode - 14.92
18
16
16
14 13
12
No. of Units
10
8
6
4
2
2 1
0 0 0 0
0
10.87 - 14.31 - 17.74 - 21.17 - 24.61 - 28.04 - 31.47 - 34.90 -
14.31 17.74 21.17 24.61 28.04 31.47 34.90 38.34
Range
38
Environmental Management
Spent Wash Generation - The Top & Bottom Five Units
The Top Five (5) units are:
Rank Name of Distillery Performance Weighted
Value (KL/KL) Score
1 Central Distilleries & Breweries Ltd, Meerut 10.87 7.995
Cantt.
2 DSM Mills Ltd, (Distly.), Dhampur, Bijnor 11.36 7.517
3 KM Sugar Mills Ltd. (Distly.), Motinagar, 11.93 6.948
Faizabad
4 Balrampur Chini Mills, Balrampur 12.65 6.242
5 Upper Ganges Sugar Mills Ltd. (Distly.), 12.66 6.233
Seohara, Bijnor
39
Environmental Management
Biogas Generation in Nm3 /KL Spent Wash
• Minimum - 7.26
No. of Units with negative
• Maximum - 54.30 performance compared to modal
• Average - 32.31 value – 16
• Mode - 32.38
6
6
5
4
3 3
3
2
2
1 1 1
1
0
7.26 - 13.14 - 19.02 - 24.90 - 30.78 - 36.66 - 42.54 - 48.42 -
13.14 19.02 24.90 30.78 36.66 42.54 48.42 54.30
Range
40
Environmental Management
Biogas Generation - The Top & Bottom Five Units
The Top Five (5) units are:
Rank Name of Distillery Performance Weighted
Value (Nm3/KL) Score
1 Jubliant Organosys Ltd. (VAM Organics), 54.30 12.001
Gajraula
2 DSM Mills Ltd, (Distly.), Dhampur, Bijnor 48.60 10.598
3 India Glycols Ltd., Kashipur, U.S.Nagar 47.48 10.321
4 Oudh Sugar Mills (Distly.) Hargaon 45.49 9.830
5 Rampur Distillery, Rampur 43.81 9.416
The Bottom Five (5) units, excluding those not having biogas generation
facilities are:
Rank Name of Distillery Performance Weighted
Value (Nm3/KL) Score
22 Daurala Sugar Works (Distly.), Daurala, 23.73 4.469
Meerut
23 Bajaj Hindustan Ltd., Gola Gokaran Nath, 23.31 4.365
Kheri
24 UDBL, Shekhpur, Unnao 23.04 4.298
25 Majhola Distly. & Chem. Works, Majhola, 18.95 3.291
Pilibhit
26 Doon Valley Distly., Kuanwala, Dehradun 07.26 0.408
41
Environmental Management
Dilution Ratio – KL Water/KL Treated Effluent
Dilution Ratio
16
14
14 13
12
10
No. of Units
8
6
4
2 2
2 1
0 0 0
0
0.31 - 5.87 5.87 - 11.44 - 17.00 - 22.56 - 28.12 - 33.69 - 39.25 -
11.44 17.00 22.56 28.12 33.69 39.25 44.81
Range
42
Environmental Management
Dilution Ratio – The Top & Bottom Five Units
The Top Five (5) units are:
43
Overall Environmental Performance
(Molasses Based Units)
• Minimum - -1.82
No. of Units with negative
• Maximum - 54.15 performance compared to modal
• Average - 25.27 value – 18
• Mode - 26.17
10 9
9
8
No. of Units
7
6 5 5 5
5
4 3 3 3
3
2
1
0
-1.82 - 6.18 - 14.17 - 22.17 - 30.16 - 38.16 - 46.16 -
6.18 14.17 22.17 30.16 38.16 46.16 54.15
44
Conclusion
1. Regional Comparison of Environmental Performance
Region No. of Units Performance Avg.
Eastern 06 23.55
Central 07 25.61
Western 17 26.47
Uttaranchal 03 21.14
30.00
26.47
25.61
25.00 23.55
21.14
Environmental Performance
20.00
(Average)
15.00
10.00
3 Units
6 Units
7 Units
17 Units
5.00
0.00
Eastern Central Western Uttaranchal
Region
45
2. River Catchment-wise – No. of Distilleries
25
20
20 18
No. of Units
15
10
6 6 6
5
5 3
1
0
Ghagra Gom ti Ganga Yam una
46
3. Locational Comparison of Environmental Performance
Location No. of Units Performance Avg.
Rural 23 24.90
Semi Urban 02 29.97
Urban 08 25.18
35.00
Environmental Performance
29.97
30.00
24.90 25.18
25.00
(Average)
20.00
15.00
8 Units
23 Units
2 Units
10.00
5.00
0.00
Rural Semi-Urban Urban
Location
47
5. Environmental Performance vs Gross Profit
Gross Profit is directly proportional to Environmental
Performance. (Available data for 14 units)
Better the Environmental Performance, higher is the
Profitability.
Gross Profit/KL Alcohol vs Environmental Performance
(Molasses Based Units)
5000
4500
4000
Gross Profit/Unit
3500
3000
2500
2000
1500
1000
500
0
0 10 20 30 40 50 60
Environmental Performance
48
6. Better Environmental Performance of Grain Based
Distilleries
49
Savings’ Potential in the overall industry
through improved environmental
performance
• Potential for annual cost savings on
achieving industry-best performance value:
• Molasses Consumption : Rs. 26.95 Crores
• Water Consumption : Rs. 12.04 Crores
• Biogas Utilization : Rs. 22.50 Crores
• Reduction in Total
Energy Consumption : Rs. 45.32 Crores
50
Recommendations
1. Serious thinking required in respect of the bottom
five (5) units having alarmingly poor environmental
performance with the consequent adverse
environmental impacts.
2. Mandatory installation of Primary (Biogas) stage of
effluent treatment in all the molasses-based plants
to generate & utilize biogas as also its close
monitoring and control. Retrofitting or replacement
of inefficient plants to be carried out to achieve best
performance.
3. Ensuring two stage aerobic treatment in Secondary
stage of the Effluent Treatment Plant in all
molasses-based units discharging into stream or
land.
51
(Contd ……)
Recommendations
(Contd ……)
52
Recommendation (…….Contd.)
Contd …..
54
Overall Environmental Performance Rating
(Molasses Based Units) …… Contd.
Contd …..
55
Overall Environmental Performance Rating
(Molasses Based Units) …… Contd.
56
PILOT PROGRAMME FOR ENVIRONMENTAL
PERFORMANCE RATING AND PUBLIC
DISCLOSURE FOR INDUSTRIES
57
• INITIATED IN MAY 2001
• COVERED 33 INDUSTRIES OF DIFFERENT SIZES AND
DIFFERENT SECTORS AT GHAZIABAD AND NOIDA
• CLASSIFIED BLACK, RED (IMPLYING LACK OF
COMPLIANCE) AND BLUE GREEN AND GOLD
(LEVELS OF PERFORMANCE MEETING EXISTING
STANDARDS)
• 6 RATED GOLD AND GREEN
• 16 RATED BLUE
• 11 RATED BLACK AND RED
58
PILOT INCLUDES
• LOCATION SPECIFIC PROGRAMME
• INCLUDES SMALL AND MEDIUM ENTERPRISE ALSO
• INVOLVES A YES / NO
• COMPLIANCE RATING AS AGAINST PERFORMANCE
RATING
59
FUTURE OUTLOOK
• DATA ACQUISITION SUCCESSFUL ONLY IF ASSISTED
BY REGULATORY AUTHORITIES.
• SEPARATE IDENTITY OF ENVIRONMENTAL RATING
PROGRAM
• INVOLVEMENT OF A MULTI STAKEHOLDER PANEL FOR
RATING VERIFICATION AND OVERSEEING THE RATING
PROCESS IS MUST
• INVOLVEMENT OF TECHNICAL EXPERTS
• INDEPENDENT FINANCIAL BACKING FOR THE PROJECT
• PUBLIC ACCESS TO THE DATA GENERATED BY THE
RATING PROCESS
• COMPLETE COOPERATION OF SPCB IS MUST.
60
CHARTER FOR CORPORATE
RESPONSIBILITY 2003
BANK GUARANTEE AND ACTION PLAN TO ENSURE
COMPLIANCE WITH ANY OR COMBINATION OF
FOLLOWING MEASURES
•COMPOST MAKING WITH PRESS MUD/AGRICULTURAL
RESIDUE/MUNICIPAL WASTE
•CONCENTRATION AND DRYING / INCINERATION
•BIOMETHANATION, TWO STAGE SECONDARY TREATMENT
AND DILUTION WITH PROCESS WATER FOR USE OF
EFFLUENTS IN IRRIGATION
•BIOMETHANATION, SECONDARY TREATMENT AND
CONTROLLED DISCHARGE INTO SEA.
•ONE TIME CONTROLLED APPLICATION ON LAND. STUDY IN
THREE MONTHS.
61
ROAD MAP FOR ACHIEVING ZERO DISCHARGE IN
INLAND SURFACE WATERS
• 50 % UTILIZATION OF SPENT WASH BY MARCH 2004
• 75% UTILIZATION OF SPENT WASH BY MARCH 2005
• 100 % UTILIZATION OF SPENT WASH BY DECEMBER 2005
62
THANK YOU
63