TECHNO-ECONOMIC VIABILITY REPORT · techno-economic viability report on municipal solid waste to energy (wte) processing plant by reverse push reciprocating grate technology ~prepared

TECHNO-ECONOMIC VIABILITY REPORT ON

MUNICIPAL SOLID WASTE TO ENERGY (WTE)

PROCESSING PLANT BY

REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY

~PREPARED FOR~

M/S. Kolhapur Green Energy Pvt. Ltd. 602, TRADE CENTER, BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI – 411 051

MAHARASHTRA, INDIA

~PREPARED BY~

MITCON CONSULTANCY & ENGINEERING SERVICES LTD. KUBERA CHAMBERS, SHIVAJINAGAR, PUNE – 411 005

MAHARASHTRA STATE, INDIA

March 2014

Prepared for M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL), Mumbai Page 2

TABLE OF CONTENTS

DISCLAIMER……………………………………………………………………………………………………………4

EXECUTIVE SUMMARY.......................................................................................................................5

ROMOTER’S PROFILE & PROJECT BACKGROUND..................................................................................13

1.1 COMPANY PROFILE OF KGEPL…………………………………………………………..….…..13

1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL………………………………………..14

1.3 KEY MANAGEMENT TEAM OF KGEPL……………………………………….……………..17

1.4 COMPANY PROFILE OF RSSPL…………………………………………………………………..18

1.5 COMPANY PROFILE OF SHIIPL…………………………………………………………………..18

1.6 PROJECT BACKGROUND………………………………………………………………….………..19

1.7 EPC CONTRACTOR…………………………………………………………………………………….21

1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL………………...………………………...21

1.9 SCOPE OF TEV STUDY……………………………………………………………………………....21

1.10 METHODOLOGY………………………………………………………..…..……………………….…22

TECHNICAL FEASIBILITY....................................................................................................................23

2.1 KOLHAPUR MUNICIPAL CORPORATION……………………………………………......23

2.2 LAND……………………………………………………………………..………………………………..24

2.3 QUANTIFICATION OF SOLID WASTE GENERATION……………………………..…27

2.4 WASTE PROCESSING TECHNOLOGY EVALUATION PARAMETERS…….…….29

2.5 PROPOSED PROCESS AND TECHNOLOGY…………………………………………….….35

2.6 PROCESS LOGIC……………………………………………………………………………………..…36

2.7 PROJECT AT A GLANCE………………………………………………………………………..…...38

2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY……..39

2.9 MACHINERY…………………………………………………………………………………………..…41

2.10 MAN POWER REQUIREMENTS…………………………………………………………………42

2.11 STATUTORY & NON-STATUTORY APPROVALS…………………………………….…44

2.12 CONCLUSION………………………………………………………………………………………...….45


MARKETING VIABILITY....................................................................................................................46

3.1 SOLID WASTE MANAGEMENT…………………………………………………………………46

3.2 REGION WISE WTE POTENTIAL IN INDIA………………………………………….……49

3.3 MUNICIPAL SOLID WASTE GENERATION …………………………………………….…55

3.4 IMPORTANCE OF SOLID WASTE MANAGEMENT: CONCEPT OF WASTE TO

ENERGY……………………………………………………………………………………………….…59

3.5 REDUCTION IN GREEN HOUSE GAS (GHG) EMISSIONS……………………………59

3.6 FLYASH BRICK MARKET VIABILITY………………………………………………………65

Appendix - GOVERNMENT OF ANDRA PRADESH……………………………….………68

VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT………………………73

3.7 POLICIES AND GUIDELINES OF MNES……………………………………………….….…78

3.8 POWER PURCHASE AGREEMENT……………………………………………………………78

3.9 CONCLUSION……………………………………………………………………………………………78

FINANCIAL VIABILITY......................................................................................................................82

4.1 EVALUATION PARAMETERS FOR FINANCIAL VIABILITY………………….……82

4.2 OVERVIEW OF OVERALL FINANCIALS………………………………………………..…..82

4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL) …………………………………..84

4.4 ASSUMPTIONS OF THE PROJECT……………………………………………………………85

4.5 CALCULATIONS OF DSCR IS AS UNDER……………………………………………………89

4.6 PROJECT IRR………………………………………………………………………………………..…90

4.7 The financials based on above assumptions has been attached as an

annexure named “Financials”. …………………………………………………………………...………90

4.8 EVALUATION CRITERIA……………………………………………………………………………90

4.9 CONCLUSION……………………………………………………………………………………………91

SWOT ANALYSIS..................... ......................................................................................................91

5.1 STRENGTH……………………………………………………………………………………………..…92

5.2 WEAKNESSES……………………………………………………………………………………………92

5.3 OPPORTUNITIES………………………………………………………………………………………92

5.4 THREATS……………………………………………………………………………………………….…92

BANKING ASPECTS OF THE PROPOSAL...............................................................................................93

CONCLUSIONS & RECOMMENDATIONS...............................................................................................95


DISCLAIMER

DELIVERY CHALLAN: No: BFS/DC/TEV/86/2013-14/C/1

Date: 25/03/2014

MITCON Consultancy & Engineering Services Ltd., Pune has prepared this TEV Study

on25.03.2014 for the Setting up Waste-to-Energy (WTE-180 TPD) Processing Plant

for power generation (1.8 MWh)at Kolhapur of Kolhapur Green Energy Private

Limited, 602, Trade Centre, Bandra Kurla Complex, Bandra East, Mumbai - 400051,

Maharashtra State on a best judgment basis.

While all reasonable care has been taken in its preparation, details contained in this

report have been compiled in good faith based on information provided by M/s

Kolhapur Green Energy Private Limited

It is further informed that the projections are the management’s best estimates and

no representation, warranty or undertaking, express or implied is made and no

responsibility is accepted by MITCON Consultancy & Engg. Services Ltd. and / or its

affiliates and / or its Directors, employees / officers in this report or for any direct or

consequential loss arising from any use of the information, statements or forecasts in

the Report.

This report is for confidential use of M/s Kolhapur Green Energy Private Limited., and

their bankers may use it only to raise loans from Banks / Institutions for meeting the

cost of the envisaged project and not for any other use.


EXECUTIVE SUMMARY

PROJECT HIGHLIGHTS:

A) General

Applicant company Kolhapur Green Energy Private Limited

(KGEPL)

Constitution Private Limited

Regd. Office address

602, Trade Centre, Bandra Kurla Complex,

Bandra East, Mumbai - 400051, Maharashtra,

INDIA

Regn. No. / CIN No. U40300MH2013PTC249945

Date of

incorporation 08.11.2013

Parent company

Sunilhitech India Infra Pvt. Ltd (SHIIPL)

(Subsidiary of Sunilhitech Engineers Ltd.

(SHEL))

Rochem Seperations Systems (India)Pvt. Ltd

(RSSIPL)

Regn. No. / CIN No.

SHIIPL: U45400MH2012PTC232077

RSSIPL: U24100MH1991PTC064068

Date of

incorporation

SHIIPL: 12/06/2012

RSSIPL: 19/11/1991


Registered Office SHIIPL:

602, Trade Centre, Bandra Kurla Complex,

Bandra East, Mumbai - 400051, Maharashtra,

INDIA.

RSSIPL:

101, HDIL Tower, Anant Kanekar Marg,

Bandra (E), Mumbai.

Proposed Project

Site Address

Kasaba Bavda village, Tehsil Kolhapur,

District, Kolhapur, Maharashtra

Board of Directors Kolhapur Green Energy Private Limited

i. Mr. Sunil Ratnakar Gutte

ii. Mr. Venkataramana Condoor

iii. Mr. Prayas Kamlesh Goel

RochemSeperations Systems (India)Pvt. Ltd

i. Mr. Prayas Kamlesh Goel

ii. Mr. Prerak Goel

iii. Mr.Rathin Vyas

Sunilhitech India Infra Pvt. Ltd

i. Mr. Sunil Ratnakar Gutte - Joint

Managing Director.

ii. Mr. R. S. Tiwari– Director

iii. Mr. C. Venkataramana

Managing Director: Sunilhitech India

Infra private limited

Director: Sunilhitech Engineers Ltd.

Products Setting up Waste-to-Energy (WTE-180 TPD)

Processing Plant for power generation (1.8

MWh) at Kolhapur, Maharashtra.


End Product is Electricity.

Scope of Study Techno-Economic Viability for Green field

project for Setting up Waste-to-Energy (WTE-

180 TPD) Processing Plant for power

generation (1.8 MWh).

B) Key observations

Company

overview Kolhapur Green Energy Pvt. Ltd (KGEPL) is a

special purpose vehicle (SPV) promoted by

Sunilhitech Engineers Ltd. (SHEL) and its subsidiary

Sunilhitech India Infra Pvt. Ltd (SHIIPL) who has

entered into a Shareholder’s Agreement with

Rochem Separation Systems Pvt. Ltd. (RSSPL) on

February 20, 2014.. KGEPL was formed to establish

a Processing plant with a capacity of 180 TPD for

conversion of MSW into useful product i.e. Power

and other Recyclable by products at Kasaba Bavda

Village, Kolhapur, Maharashtra on Design, Build

Finance, and Operate and Transfer (“DBFOT”) basis

for a period of 30 years.

Project

Overview

Rochem Separation Systems Pvt. Ltd. (RSSPL)has

been awarded a letter of award on 17.09.2013 by

Kolhapur Municipal Corporation (KMC) for

development of MSW processing facility for

treating the MSW collection from the city of

Kolhapur on Design, Build, Finance Operate and

Transfer (DBFOT) basis.

KGEPL is a special purpose vehicle (SPV) formed

for the said purpose.

The Concession Agreement has been signed


between KMC and KGEPL on 7th February 2014.

The development of project is expected to start

once KGEPL achieves financial closure. The

Construction period of the project within 08

months from start of construction. Expected Plant

Commissioning date will be January 01, 2016.

The Municipal Corporation (KMC) has already

executed the land lease agreement with KGEPL on

3rd June 2014.

SHEL will be the main EPC contractor to implement

the project on turnkey basis as proposed by KGEPL.

Financial

Indicators:

Cost of Project –

Sr. No. Particulars Total Cost

in Lacs

1 Plant & Machinery 1666.68

2 Civil Costs 613.42

3 Overheads & Contingency Exp. @ 2%

45.60

4 Pre-operative Expenses @ 2%

45.60

5 Financing Costs 1.50% 34.20

6 Interest During Construction 77.18

Total Project Costs* 2,482.69

Means of Finance

Particulars Amt. Rs. in Lacs %

Owners Contribution 868.94 35%

Debt Finance 1613.75 65%

Total 2482.69 100%


Financial Indicators – Rs. In Lacs

Sr.

No. Particulars Figures

01. EBIDTA as on March

2017

621.27

02. Profit Before Tax as on

March 2017

319.86

03. Profit After Tax as on

March 2017

255.86

04. DSCR Avg. 1.78

Min. 1.54

07. Project IRR 23.24%

08. Project NPV 2,919.29

09. Equity IRR 34.06%

10. Equity NPV 1,627.56


Observations 1. KMC will be providing the following fee to KGEPL

for accepting & processing the MSW at the

established MSW processing plant for a period of

30 years with following financial offer:

Description Details

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

escalation during the concession

period.

2. Land Lease Agreement has been signed between

KGEPL and KMC on 3rd June 2014.

3. Till date KGEPL have issued performance Bank

Guarantee of Rs. 150.00Lacs to KMC dt. 29.01.2014

having expiry date of 01.06.2015.

4. Project Development Fees of Rs. 40.00Lacs is

already being paid to KMC on 31.10.2013 vide DD

No. 023786.

5. Concession Agreement between KMC & KGEPL is

executed on 7th February 2014.

6. As per the Concession Agreement &KMC waste

generation is assumed to be 140 TPD in 2015 and

increases to 180 TPD by 2029. It assures the

KGEPL will get the raw material i.e. MSW from KMC

continuously as per the Concession Agreement

assuring the raw material supply.

7. KGEPL will be having its own power generation

arrangements and therefore assured revenue


generation.

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

are adequate.

9. The infrastructure in the form of building and

sheds is adequate to support the projected

production.

10. Company does not face any problem in sourcing

the technical and non-technical manpower.

11. Based on the data provided and observations

during the site visit, the project is considered to be

technically feasible.

12. The assumptions are realistic on income side and

conservative on expenditure side. Profitability

appears to be achievable and realistic.

13. On perusal and detail analysis of financials

submitted by KGEPL; we observed that the

financials reveal sound financial indicators.


Conclusions The comprehensive scheme would address the

long term profitability. It would also help

Company to address and solve the issue of MSW

management and would enable company to bring

liquidity as well to protect the interest of all

stakeholders including the lenders.

Therefore, after detailed financial appraisal, we

are of the opinion that the project of KGEPL is

proper for implementation and after its due

implementation; KGEPL would be in a position to

recover the position as stipulated in financials.

Thus, it being financially viable proposal may be

accepted by financing bankers as fair banking risk.


CHAPTER-1

PROMOTER’S PROFILE & PROJECT BACKGROUND

1.1 COMPANY PROFILE OF KGEPL –

Kolhapur Green Energy Pvt. Ltd (“KGEPL” or “Company”) is incorporated

during 08.11.2013 having its registered office at 602, Trade Centre, Bandra

Kurla Complex, Bandra East, Mumbai - 400051, Maharashtra, INDIA. KGEPL

is a special purpose vehicle (SPV) promoted by Sunilhitech Engineers Ltd.

(SHEL) and its subsidiary Sunilhitech India Infra Pvt. Ltd. SHIIPL has entered

into a Share Holder’s Agreement with Rochem Seperations Systems

(India)Pvt. Ltd(RSSIPL).By virtue of this Agreement SHIIPL have majority

shares with voting & economic rights by which the shareholding comes to

88:12 respectively. KGEPL was formed to establish Processing plant with a

capacity of 180 TPD for conversion of MSW into useful product (Power) &

Bottom Ash as the byproduct at Kasaba Bavda Village, Kolhapur,

Maharashtra on Design, Build Finance, and Operate and Transfer (“DBFOT”)

basis for a period of 30 years.

1.1.1 The land of 4hectare will be allotted to KGEPL by KMC on a lease basis. The

project is expected to achieve Commercial Operation Date (COD) by January

01, 2016.

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

opportunity to enter into solid waste management sector as an extension of

the current business portfolio. The group has aggressive plans in the solid

waste management sector where it plans to bid for several other projects.

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

to M/s Rochem Seperations Systems (India)Pvt. Ltd (RSSIPL). vide letter

Health Dept. / W.S. No. 1/ 211/ 2013 dt. 17/09/2013 on the basis of bid


documents submitted by on dt. 20/06/2013 against the Tender Notice No.

27 dt.04/06/2013 for proposal to Establishment of Processing Plant for

Conversion of MSW to useful product (Power) at KasabaBavda, Village in

Kolhapur on DBFOT basis.

1.1.3 KGEPL proposes to implement Reverse Push Reciprocating Grate Technology

Sourced by Articulated Vessels & Utility Engineers (P) Ltd. (AV-UE) for

execution of said contract with Kolhapur Municipal Corporation (KMC).

1.2 PROFILE OF BOARD OF DIRECTORS OF KGEPL –

The brief profiles of the board of directors of KGEPL are as under:

1.2.1 Mr. Sunil Ratnakar Gutte Managing Director)

Mr. Sunil Gutte, Managing Director, is a Mechanical Engineer from Pune

University, has done Family Business Management course from S.P. Jain

Institute of Management, Mumbai and Project Management from IIM,

Ahmedabad. After completion of his education he joined Sunilhitech Engineers

Ltd. (SHEL), initially in project executions, administration and control. He was

instrumental in the journey of the SHEL from Private Limited to Limited and

then to Listed Company with two major stock exchanges of India, he

successfully completed the IPO in 2006 and QIP in 2008. His dedication,

understanding, business and finance skills, making and implementing

developmental policies, broadening of avenues for various business,

implementing reporting standards, good Corporate Governance practices, has

been instrumental in Group’s overall strength, today the group stands tall with

more than Rs 1500 crores top line. Sunilhitech diversified in to Sugar ,Power

and Distillery through a state of the art green field integrated plant Gangakhed

Sugar and Energy Ltd (approx Rs400 crore) in 2010, the project has been

awarded with Mega status by Govt. of Maharashtra in 2012 since it is

established in the industrial backward region of Marathwada, to partner with

the growth of vidharbha Sunilhitech also forayed into manufacturing through


its subsidiary SEAM Industries Ltd at Butibori Nagpur in 2008, which has the

capability to manufacture Power plant and Process plant equipments and

accessories (upto 660 mw), with a annual turnover of approx Rs. 200.00crs.

1.2.2. Mr. C. Venkataramana

Managing Director: Sunilhitech India Infra private limited

He has renowned experience in infrastructure business as well as marketing

for over 33 years of which 18 years in the field of infrastructure development

with close to 14 years in senior position as M. D, CEO and Sr. VP (Infra). In the

field of infrastructure he has handled many prestigious projects from Bid stage

to execution stage with two leading groups in the country i.e. GVK and Essel

Group (Zee TV). He has been a part of the success story of these two groups

establishing themselves in infra space from scratch. In the case of Essel Group

(Zee TV) it was he who handled the total growth in Infra space. Some of the

prestigious projects handled by him in GVK were Mumbai airport (9000 cr),

Jaipur Kishangarh, 6 lane road (700 cr), Peramballus SEZ (1500 cr), GVK one

mall at Hyderabad of 7.5 lacs Sqft (250cr) and many more. In the Essel Group

(Zee TV) he started from scratch in 2008 and has handled 14 road projects

(10000cr) of which 9 were completed with 5 roads in NHAI and 9 roads of

special state highways and state highways, one hydel project in Nepal – 82 MW

(850 cr) 3 solar projects under NVVN and KREDL 30 MW (270cr), a school

project of 5 lacs sqft with MMRDA in BKC (260cr), Municipal solid waste to

energy project of 3500 TPD per day (1000cr) including Deonar in Mumbai,

24*7 water supply project at Aurangabad (1200cr) as well signed

Memorandum of understanding (MOU’s) with various state governments for

infra projects.


1.2.3. Mr. Prayas Kamlesh Goel

Mr. Prayas Goel holds a degree in Mechanical Engineering from Bombay

University and his role at Concord Blue includes overseeing Business

Ventures, Equipment and Process standardization, Strategic vendor

Management, Growth and Corporate Strategy. At an early age of only 24 years

Mr. Goel invented and patented his own reverse osmosis waste water

membrane treatment technology, which today is installed in over 500

locations throughout the world. Clients range from private industry such as

distilleries, the Indian and Sri Lankan Navy and Government bodies for the

production of clean water. Today Prayas is the mastermind behind the

Concord Blue Reformer – A revolutionary technology in waste management

services. Prayas brings with him a world of experience in the areas of

engineering and process industries. Hailing from an entrepreneurial family,

Prayas has been at the helm of his business for over half a decade now.

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

Sr. No Name of the Director Address

1. Mr. Sunil Ratnakar

Gutte

97, 4th floor Swami Plaza East High Court

Road Ramdas Peth, Nagpur

2. Mr. C. Venkataramana 602, Trade Center BKC, Bandra East,

Mumbai

3. Mr. Prayas Kamlesh

Goel

101, Dheerajarma Anant Kanekar Marg

Bandra East Mumbai.


1.3 KEY MANAGEMENT TEAM OF KGEPL

KGEPL has a senior management team with cumulative professional

experience. Following are various Key Management personnel of KGEPL:

Name Designation

Experience (in Years)

Detailed Experience Functional duties at the

Unit Mr. C. Venkataramana

Director 33 Rich experience in overall Project development

Will look after the overall project

Mr. Ashok Mahindrakar

Vice President

41 Rich experience in Project Management, Construction Management & Commissioning of Project in EPC & BOP Projects.

Will look after project execution.

Mr. Sunil Shinde General Manager

15 Rich experience in civil works of major infrastructure projects.

Will look after the civil works of the project.

Mr. S. R. Venunath

General Manager

12 Rich experience in HR, overall Administration & Corporate Affairs

Will look after overall administration & liasoning.

Mr. P.N.Rao AGM 50 Rich Experience in Distribution Transformers, transmission lines & O&M

Will look after project execution

Mr. Pradip Adake

AGM 35 Rich experience in overall Site Management

Will look after Project Management, Construction Management & Commissioning of Project.

Mr. Rohit Sharma

Senior Manager

15 Rich experience in executing MSW & water supply Project.

Will look after the overall operations of the project.


1.4 COMPANY PROFILE OF RSSPL–

Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) is a company incorporated on

19th November 1991 with office located at 101, HDIL Tower, Anant Kanekar Marg,

Bandra (E), Mumbai.

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

Osmosis (RO), Nano-filtration (Nano) and Ultra Filtration. Sea Water Desalination,

Ground / Brackish Water Desalination and Industrial Waste Water Purification

for Recycling and Reuse.

Some of the Directors of RSSPL are:

a. Mr. Prayas Kamlesh Goel

b. Mr. Prerak Goel

c. Mr. Rathin Vyas

1.5 COMPANY PROFILE OF SHIIPL –

M/s Sunilhitech India Infra Pvt. Ltd. (SHIIPL), a subsidiary of SHEL and

incorporated for infrastructure business by competitively bidding for projects

in the new & upcoming sectors like waste to energy, solar power projects, road

development & construction. The company would be targeting these projects

both on BOOT, EPC & Annuity basis falling under various authorities whether

it is National or State.

Some of the Directors of SHIIPL are:

a. Mr. Sunil Ratnakar Gutte

b. Mr. R. S. Tiwari

c. Mr. C. Venkataramana


1.6 PROJECT BACKGROUND –

Necessity of the project -

When a material is not suitable / usable for human society then that material

is called as waste for that society. Waste generation is 24 x 7 ongoing

processes. Waste generation and living organisms grow in direct proportion to

each other. As living standard increases per capita waste generation increases

and vice versa. By better handling of waste coming out from human society;

environmental burden and direct and indirect effect on human health can be

minimized.

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

area and water bodies also. In order to solve this problem different waste

management rules are implemented like Hazardous Waste Management, Bio-

Medical Waste Management, E-Waste management and Municipal Solid Waste

management (MSW Rule 2000[Management & Handling]). For fulfillment of

above rules Public Private Partnership are welcomed for development of MSW

sector.

Rochem Separation Systems (India) Pvt. Ltd. (RSSPL) has been awarded a letter

of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for

development of MSW processing facility for treating the MSW collection from

the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)

basis. KGEPL is a special purpose vehicle (SPV) promoted by Sunilhitech

Engineers Ltd. (SHEL) through its subsidiary Sunilhitech India Infra Pvt. Ltd.

The Concession Agreement was signed between KMC and KGEPL id signed on

7th February 2014 for setting up a MSW processing plant with a capacity of

180 TPD for conversion of MSW into useful product (Power) Kolhapur in

Maharashtra on “DBFOT” basis for a period of 30 years. The project is

expected to be completed within 08 months & commencement of commercial

operations of the project is expected to start by January 01, 2016.


The Municipal Corporation has provide the4 Hectare land as per Concession

Agreement.

SHEL will be the main EPC contractor to implement the project on turnkey

basis as proposed by KGEPL.

The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is

proposed to be funded in a Debt to Equity ratio of 65:35. Total Owners

Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.

1613.75Lacs for the project would be tied up with Banks/ Financial

Institutions.

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

Solid Waste (MSW) in to Useful Product (Energy) at Kasaba Bavda village,

Tehsil Kolhapur, District, Kolhapur, Maharashtra on “DBFOT” Basis. KMC will

collect and transport the waste from city with the help of their own resources

and delivered at processing plant premises for processing.

According to the advertisement published by KEM in local newspapers dated

04.06.2013 for Expression of Interest from parties executing MSW

management under open technology. RSSPL had applied for the same.

In response to the said Request for Proposal RSSPL submitted its willingness

to execute MSW management project on 20.06.2013.

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

letter of award on 17/09/2013for setting up of MSW processing plant for

treating the MSW collection from the city of Kolhapur on Design, Build,

Finance Operate and Transfer (DBFOT) basis.

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

bankers for financial assistance.


KGEPL therefore have approached MITCON for assessment of techno-Economic

Viability (TEV) of its proposed project.

1.7 EPC CONTRACTOR

KGEPL have decided to include SHEL as its EPC Contractor. Since the Company

has rich experience in large infrastructure projects. The KGEPL is in process of

finalizing EPC contract with SHEL The scope will include civil work, EPC,

equipment & erection till commissioning of the plant. AV-UE shall source

indigenous equipments along with O&M of the plant.

1.8 FINANCIAL COMMITMENTS SO FAR BY KGEPL–

The financial commitments made by KGEPL till date is as follows:

1. KGEPL have issued performance Bank Guarantee of Rs. 150.00Lacs to

KMC dt. 29.01.2014 having expiry date of 01.06.2015.

2. Project Development Fees of Rs. 40.00Lacs is already being paid to KMC

on 31.10.2013 vide DD No. 023786.

1.9 SCOPE OF TEV STUDY -

THE SCOPE OF WORK DEFINED AS UNDER –

1. Assessment of Promoters and senior management set-up

2. Assessment of solid waste management industry analysis

3. Technical Assessment

a. Plant configuration

b. Manufacturing Process, Technology used by company and its

evaluation in the context of present and emerging trends in the

industry

c. Assessment of installed capacities, plant wise / product wise

d. Forecast and estimate of future capacity utilization in the context of

technology status and market assessment

4. Raw material requirement, sources and logistic issues

5. Evaluation of utility requirements, manpower availability

6. Financial Analysis


a. Financial Projections for profitability statements, cash flow

statements and balance sheet.

b. Assessment of Working Capital requirements, margin money

requirement.

c. Assessment of needs of financial restructuring for long term debt

sustainability.

d. Operation and Financial Risk Assessment

e. Sensitivity Analysis

7. Conclusions on Technical and Economic Viability of the company’s

operations.

8. Any other aspect relevant to the study may also be incorporated and

justified

1.10 METHODOLOGY

In order to complete the assignment, MITCON adopted following

methodology:

a. MITCON team consisting of technical and financial experts visited

proposed site at Kasaba Bavda village, Tehsil Kolhapur, District,

Kolhapur, Maharashtra on 1st March, 2014.

b. We collected the information on implementation of proposed MSW

project.

c. We have relied upon the information shared by the company and

assessed the said information from the point of view of techno

commercial feasibility.


CHAPTER-2

TECHNICAL FEASIBILITY

2.1 KOLHAPUR MUNICIPAL CORPORATION –

Kolhapur city is located in south-west Maharashtra at Lattitude N 16.430 ,

Longitude E 74.140 and is known as Dakshin Kashi from ancient time. It is a

famous religious place due to Mahalakshmi & Jotiba temples. The city stands

on the bank of river Panchaganga, a tributary of the river Krishna. It has an

elevation of 574 m which is higher than that of Pune. By road, Kolhapur is 228

km south of Pune, 615 km north-west of Bangalore and 530 km west of

Hyderabad. Kolhapur's climate is a blend of coastal and inland climate of

Maharashtra. The temperature has a relatively narrow range between 100C to

350C. Summer in Kolhapur is comparatively cooler, but much more humid,

compared to neighbouring inland cities. Maximum temperatures rarely exceed

380C and ranging between 33 to 350C with average rain fall 1200 mm.

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

becoming an industrialized district as well and already a front‐runner in agro‐

based industries.

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

management rule 2000 KMC has planned to develop MSW processing plant at

Kasaba Bavda site on DBFOT basis.


The preliminary information about KMC is given bellow

1 Commissioner Mrs. Vijayalakshmi Prasanna Bidari

Additional Commissioner Mr. Nitin Desai

Deputy Commissioner (1) Mr. Sanjay Herwade

Deputy Commissioner (2) Ashwini K. Waghmale

2 Population 2001 Censes 4,93,167 Souls

Population 2011 Censes 549,283 Souls

3 Area (Km2) 66.82 Km2

4 Population Density 8,200/km2

Major Business

Agriculture

Agro-Food Processing

Sugar Industry

Foundries

Education Centers

MITCON team visited the proposed project site on 1st March; 2014 at Kasaba

Bawada, Kolhapur city, Maharashtra State and verified the following –

2.2 LAND -

Land admeasuring nearly 4 Hectare (nearly 10 Acre) is available with KMC to

set up the proposed project. KMC has handed over the same land for

development of waste processing (Waste to Energy) Plant as per RFP

document


The land is bounded as follows –

On or towards Property on Sides

North Private Farms

South Agricultural Collage Farm

East KMC STP Plant

West Survey No. : R.S.845, 2596

(Source: MITCON Team Site Visit)

Please refer Annexure no. 1 for Google image of proposed site at kasaba

Bavda Kolhapur.

At present partial land is occupied by old dumped waste. Old dumped waste

removal process is under process by KMC. There is no civil structure

available on site and the land can be immediately put to use for the project

purpose.

Considering the land conditions, the proposed site allocated by KMC is

reasonably good location.

2.2.1 Proposed Land Utilization –

Land utilization plan has been prepared and accordingly the proposed land

utilization is as under –

Sr. No. Particulars

1 Plot Size

2 Proposed plant area

2 Green Belt

3 Internal Roads

6 U/G Water Tank

7 U/G Fire Fighting Water Tank

8 Fire Fighting Pump

9 Engine Room (shed)

10 Weigh Bridge with ramp


Sr. No. Particulars

11 Weigh Bridge room

12 MSW Bay Area

13 Pollution Control Equipment

14 Security cabin

15 Boiler

16 Boiler Room

17 Transformer room

18 Switch yard room

19 HT/LT room

20 Engine Utility Shed

21 Latchet treatment plant

22 Water Pump room

23 Raw water storage plants

24 Consumer connection S/S & DG set

25 Store room

26 Air Compress

27 DG

28 Parking

29 DM plant

30 Turbine and substation

31 Parking and sanitization facilities

32 Workshop

33 Amenities

* These areas may vary in accordance with detail engineering.


2.3 QUANTIFICATION OF SOLID WASTE GENERATION –

Year wise expected waste generations as per concession agreement, provided

by KMC are as follows.

Sr. No. Financial Year Ending March 31st MSW Quantity (TPD)

1 2015 140

2 2016 140

3 2017 140

4 2018 150

5 2019 150

6 2020 150

7 2021 150

8 2022 150

9 2023 160

10 2024 160

11 2025 160

12 2026 160

13 2027 170

14 2028 170

15 2029

(End of Concession Period) 180

Source: Concession Agreement between KMC & KGEPL

Nearly 140 TPD will generated in year 2015 to 2017, 150 TPD in year 2018 to

2022, 160 TPD in year 2023 to 2026, 170 TPD in year 2027 to 2028 and 180

TPD in year 2029 at end of concession period.

KGEPL has shared the waste characteristics as follows –

2.3.1 Waste Characteristics


SR.

No. Parameters Unit

Sample No.

I

Sample

No. II

Avg. of Sample

No. I & II

A Physical Analysis

1 Metal % 0 7.1 3.55

2 Paper % 11.4 14.3 12.85

3 Glass % 0 0 0

4 Plastic % 5.7 19 12.35

6 Leather % 8.6 9.5 9.05

7 Wood % 0 0 0

8 Garden Waste % 22.9 16.7 19.8

9 Textile % 8.6 14.3 11.45

10 Food Waste % 20 9.5 14.75

11 Other (Dirt,

Bricks, Stones

..etc.)

% 11.4 9.5

10.45

12 Bulk Density Kg/M3 687.5 437.5 562.5

B Chemical Analysis

1 Gross Calorific

Value

Cal/g 5381.99 - -

2 Ash Content at

8000C

Cal/g 12.26 - -

3 Moisture Content

at 1050C

% 64.39 - -

4 Volatile Matter at

9000C

% 9.07 - -

5 Fixed Carbon % 14.25 -

6 Carbon % 21.91 - -

7 Hydrogen % 1.69 - -

8 Nitrogen % 0.59 - -


SR.

No. Parameters Unit

Sample No.

I

Sample

No. II

Avg. of Sample

No. I & II

9 Oxygen % 66.77 - -

10 Sulphur % 0.75 - -

2.4 WASTE PROCESSING TECHNOLOGY EVALUATION PARAMETERS –

Waste management selection technology uses parameters like – ability to

convert to green energy and volume reduction ability to convert it in to gas

thereby generation of power, technique such as Incineration method and more

over public acceptance level.

Following comparative chart with other municipal solid waste processing

technology,

Features Composting Landfill Incineration Gasification

Emission to

Atmosphere Low Median Low Negligible

Recovery of

Energy Low NIL High High

Suitability for

various kinds

of wastes

Low N/A High High

Rejects back to

Landfill High (>60%) N/A Low Low (<15%)

Seasonal

Variation High N/A Low Low

Land Area for

MSW disposal Very High Very High Median Low

Smell Emitted High High Median Low(As

System is


Features Composting Landfill Incineration Gasification

completely

Covered)

Process Time High

(>30 Days) N/A Low

Low

(Waste gets

disposed of in

the same day)

Construction

Time High Very High Low Low

Accordingly, (KGEPL) Reverse Push Reciprocating Grate Technology of waste

processing has been evaluated and it stood better performer than other

municipal solid waste processing technologies like composting, land filling and

Biomethanation.


Following comparative chart explains features of different technologies -

Technology End

Products Limitations

Public

Acceptance

Technological Commercial

Composting Compost

1. Non –

operational in

Monsoon

Season

2. Large space

requirement

3. Threat to

public health

in proximity

1. Problem in

selling

because of

poor

quality due

to inert

materials

(Heavy

Metals)

Partially

Acceptable

Gasification

/

Pyrolysis

Energy

1. Moisture

Content is a

Limiting

factor

2. More fuel

required in

rainy season

to heat mass

1. Lesser

output of

saleable

energy.

2. High O&M

costs

Acceptable

Palletisation

Potential

for RDF

&

Energy

1. Moisture

Content is

limiting

factor

2. The

technology is

non-

operational

during

1. Price

realization

of the

pallets is

quite low. Acceptable


Technology End


Public

Acceptance


monsoon

season.

Incineration Energy

1. Multi

seasonal

MSW can be

acceptable &

there is no

change in

Power

Generation

output.

2. The disposal

of residual

Ash is a

resource

factor.

1. Low

captive

power

requireme

nt for

burning

mass at

very high

temp.

2. Low O & M

cost

Acceptable

Anaerobic

digestion

Energy

&

Organic

Compost

Thermopholic

Anaerobic

Digestion is

the most

suited

technology

for Indian

conditions:

1. Operational

all year

round.

1. Efficient

process &

quality

output.

2. Compost is

organic in

nature &

can be

used for

top soil

replaceme

Acceptable


Technology End


Public

Acceptance


2. It is a closed

process &

thus there is

no nuisance

in & around

site.

3. It can be

accelerated

through

proper

segregation

of waste.

nt or can

be blended

with NPK,

for better

acceptance

& price

realization.

3. The land

requireme

nt is

minimum.

Ministry of New and Renewable Energy (MNRE) ministry of Govt. of India has

defined the criteria of selection of waste processing.

An evaluation checklist with the ratings for the different main and sub-

criteria for the five competitive technology options showed the following

overall scores and rank

Technology Score (Max 150) Rank

Biomethanation 107 1

Incineration 83 2

Gasification 80 3

Landfill with gas recovery 75 4

(Source: Ministry of Non-conventional Energy Source)


Incineration technique is at Rank No. 2, since the power generation is more

than bio-methenation per MW capital investment is lower as compared to

other techniques, therefore, KGEPL has decided to adopt Incineration

technology for power generation.


2.5 PROPOSED PROCESS AND TECHNOLOGY :

REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY

Introduction :

The Single Segment Reverse Push Stoker System shall be capable of

combusting municipal waste.

The reciprocating stoker system will consists of a refuse feeder, a reverse

acting stoker with adjustable device of refuse layer, a combustion control

system and an ash discharge system.

This technology is based on the existing reverse push reciprocation grate, and

its core is in view of the living MSW features of low heat value and high

moisture. The MSW could be more fully burned by Single Segment Reverse

Push Stoker system so as to decrease the heat reduction rate of ash slag. The

primary air used for supporting burning is preheated by secondary air heater

to make the temperature more than 240 ºC to 250 ºC, so as to make the MSW

that enters into furnace dried, fired and burned at a quick speed. The extra air

factor of boiler is designed to be over 1.6, to maintain sufficient oxygen in

boiler and reduce the production of Toxic Equivalent Quantity. AV & UE’s

boiler, high-temperature secondary air sprays into at a high speed to make

sufficient disturbance of flue gas, prolong the residence in furnace, so as to

improve the combustion condition to ensure the flue gas temperature not

lower than 850 deg. C in furnace and residence over 2 seconds.

In view of the situation that the primary air which is used for supporting

burning is difficult to control, division air chambers is designed, that is in

accordance with the different regional features during MSW burning, the air

chamber under the grate is divided into several relatively independent air

chambers, each chamber equipped with air adjust door. Under certain air

pressure, by adjusting the primary air amount in one or several or all air

chambers, the regional or the whole combustion condition could be improved.


The open range of air door and air amount is designed to be linear ratio, and

the combustion condition could be exactly controlled by auto control system.

2.6 PROCESS LOGIC:

STEAM GENERATOR CAPACITY

Boiler Capacity 15 TPH

Steam Pressure 40 KG/cm2

Steam Temperature 400 °C

Fuel Quantity 180 TPD

PIT MANAGEMENT

• 4 to 5 days of the plant capacity is dumped in the pit.

– The garbage is not kept in open as odor has to be managed

– The garbage leaves the moisture and the CV increases due to anaerobic

activity.

• The efficiency of power generation in a steam power plant highly depends on

the pressure and the temperature of superheated steam. In Municipal Solid

Waste (MSW) based waste to energy plants the range of steam parameters is

typically around 46 bar and 410°C. High pressure and high temperature cycles

are crucial for increasing the operating efficiency and the power output from

the Municipal Solid Waste (MSW) Waste to energy plants.


MSW FUEL FIRING GRATE SYSTEM

The moving grate mechanism (normally inclined although horizontal grate designs

are operating) moves the burning solid waste from the inlet to the outlet. Primary

combustion air passes from below the grate underneath the burning solids and flow

through the waste bed into the freeboard zone above the bed. Secondary and tertiary

air injection ports are used to ensure complete combustion of the gas phase

components volatilized from the solid waste. Typical regulations require the flue gas

to be held at a minimum temperature of 850oC for two seconds after the last injection

of combustion air.


MSW based power plant flow diagram

2.7 PROJECT AT A GLANCE

1. MSW Handling Capacity : 180 TPD

2. Calorific value of MSW : 1250Kcal/Kg

3. Gross Power Generation (MW) : 1.80 MW

4. Annual operating period : 7008 Hrs

5. Plant load factor : 80%

6. No. of boilers to be installed : One (1)

7. Capacity of the Boiler (MCR) : 1 x 15 TPH

8. Boiler Outlet Steam : 42 ata, 400 ºC

9. Fuels used for the Boiler : MSW

10. No. of turbo generators to be installed : One (1)

11. Type of condenser : Water cooled

12. Power Plant aux. Consumption (MW) : 360 KW


2.8 BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY

Better combustion & longer life

Grate bars made of – corrosion resistant, heat resistant cast steel alloy

Fuel Feeding System

Feeding system shall be a hydraulic RAM which is a proven system.

Feeder operation for 100% MCR considered to take care of variation in fuel

physical properties

Fuel Spreading System

Pneumatic spreading system for uniform distribution to the entire grate

Combustor

Higher excess air to maintain optimum grate temperature of less than 950 °c

Because of High excess air no ash fusion & clinker formation on the grate

Secondary air at correct location to ensure better air penetration & turbulent

mixing and better post combustion

Furnace 1st pass with special type refractory lining low gas velocity & long

residence time

Refractory lining take care of furnace corrosion due to change in atmosphere


ENVIRONMENTAL MANAGEMENT PLAN:

The plant engineer will draw a schematic plan for plantation, gardening, drainage

system to enforce proper implementation & reporting to plant engineers.

Pollution Control:

Power plant main pollution is boiler waste gas with ash dust for which

Electro Static precipitator (ESP) is fitted. Ash is collected at bottom and

pneumatically conveyed collected in Ash silo, Ash mixed with water from

ash silo by tuck dispatched to dumping yard. Ash can be used for cement

manufacturers. Fine ash from ESP contains 92% silica, which can be for

silica gel of pure silica by chemical reaction. It gives a rich dividend.

Water pollution is little during cooling tower blowing and D.M. plant blows

acidic or alkaline water, which is neutralized, in small tank. The water is

ultimately used in plantation.

Control Method of Air Pollution:

Air pollution is controlled through E.S.P. and outlet air form ESP having 50-

mg/mg3 airs is discharged to atmosphere at 55-meter stake height

chimney.

Dust area bag filters (suction) type is fitted to collect dust in fitter bags & a

little water spray arrangement (sprinkler) controlled avoid reducing air

pollution.

Control of Water Pollution:

Water pollution is little as explained it is neutralized in small tanks. Then

water is used for gardening purpose.

Control of Thermal Pollution:

Thermal pollution at initial stage taken care by each equipment suppliers,

boilers, ESP,T.G. steam pipe line, all are woolen with aluminum cladding

covered which will reduce heat loss. This power plant thermal cycle unit

loss of thermal energy is inefficient operation.


Control Method of Noise Pollution:

All Equipment maintenance noise below 20 dB during steam exhaust in air

goes up to 80 db. Power residential area steam exhaust have silencer but

during turbine tripping steam are exhausted to air to bring down the boiler

pressure.

2.9 MACHINERY -

Equipment & Technology Supply

SHEL will source equipment from AV-UE. The indicative list of indigenous

equipments is as under:

Sr. No Equipments

1 Weigh Bridge

2 Refuse Bunker

3 Refuse Crane

4 Charging Hopper

5 Chute

6 Feeder

7 Stoker

8 Clinker Roller

9 Ash Extractor

10 Ash Cane

11 Ash Pit

12 Forced Draft Fan

13 Waste Heat Boiler

14 Fabric Filter

15 Induced Draft Fan

16 Stack

17 Crane Control Room

18 Control Room


2.10 MAN POWER REQUIREMENTS –

Designation Quantity

Plant Manager 01

Manager E and I 01

Asst. Manager Utility Maintenance and

Project

01

Operation Team

Shift Incharge (Electrical / Mechanical) 01

Shift Technician (Electrical) 01

Shift Technician (Mechanical) 01

Boiler Operation Team

Shift Engineer (Electrical / Mechanical) 01

Shift Technician (Electrical) 01

Shift Supervisor - Non

Technical(Production of MSW)

01

Utility, Engine Room & Substation Area-

Operation/Maintenance


Shift Technician (Electrical/Mechanical) 01

Maintenance –Boiler & Ash Handling

System


Shift Technician (Mechanical) 01

Environmental Management

Plant Engineer 01


Designation Quantity

Stores

Stores/Purchase Manager 01

Asst. Stores 01

General

Admin and HR Executive / liasoning 01

Security Supervisor cum safety Officer 01

Weigh Bridge Operator 01

JCB Operator _Company JCB 02

Quality Controller(GCV, Moisture, Gas

Analysis)

01

Driver 01

Office Peon 01

Out Sourced Labour

Security Supervisor and Guards 01

Manual Segregation Labour Team 01


2.11 STATUTORY & NON-STATUTORY APPROVALS

Sr.

No. Approval/Clearance

Concerned

Agency Responsibility

1 Site authorization under MSW

Rules MPCB Concessionaire

2 Consent to establish under the

Air and Water Act MPCB Concessionaire

3 NOC from Fire Department,

KMC

Fire Department,

KMC Concessionaire

4 Disaster Management Plan DMD, KMC Concessionaire

5 Electricity Approval MSEDCL Concessionaire

6 Power Generation and Purchase MERC/ MEDA Concessionaire

7 Plant Layout Drawing KMC Concessionaire

8 Water supply Water Dept, KMC Concessionaire

MPCB : Maharashtra Pollution Control Board.

DMD : Disaster Management Department, KMC

MSEDCL : Maharashtra State Distribution Company Ltd.

MERC : Maharashtra Electricity Regulatory Commission.

MEDA : Maharashtra Energy Development Authority.


2.12 CONCLUSION

On the basis of Technical Scrutiny of the upcoming unit, we are of the opinion

that -

1) KGEPL proposes to implement Reverse Push Reciprocating Grate technology

of converting municipal solid waste to energy.

2) KGEPL will source Equipments from AV-UE.

3) Provision of machinery, utilities, and misc. assets are adequate.

4) The infrastructure in the form of building and sheds is adequate to support the

projected production.

5) Company proposes to induct training programs with the help of technology

provider and therefore should not face any problem for implementation of

project.

6) Based on the data provided and observations during the site visit, the project

is considered to be technically feasible.


CHAPTER-3

MARKETING VIABILITY

3.1 SOLID WASTE MANAGEMENT -

Solid Waste Management is a part of public health and sanitation normally

dealt with by local bodies like Municipal Corporations. It is essential

obligatory functions of the Urban Local Bodies in India. This service is falling

too short of the desired level of efficiency and satisfaction resulting in

problems of health, sanitation and environmental degradation.

It is estimated that the total solid waste generated by 300 million people

living in urban India is 38 million tonnes per year (MSW Manual). The

collection and disposal of municipal solid waste is one of the pressing

problems of city life, which has assumed great importance in the recent past.

With the growing urbanization as a result of planned economic growth and

industrialization, problems are becoming acute and call for immediate and

concerted action. The proper disposal of urban waste is not only absolutely

necessary for the preservation and improvement of public health but it has

an immense potential for resource recovery.

World oil prices increased by more than 50% during the seventies, i.e.

subsequent to the oil embargo by OPEC (Organisation of Petroleum

Exporting Countries). This necessitated a global search for alternative energy

resources. The Government of India recognized this potential and formulated

a separate ministry, Ministry of Non-Conventional Energy Sources (MNES) in

the year 1992. The functions of MNES is to co-ordinate, fund, manage and

implement the projects in the nonconventional energy sector utilizing

resources such as the wind, solar, biogas, hydro and geothermal and urban

and industrial waste in the country. There is an exclusive group in MNES,

which deals with "Energy Recovery from Wastes". The waste-to-energy


projects are implemented through National Programme on Energy Recovery

from Urban and Industrial wastes and UNDP/GEF.

Municipal Solid Waste (MSW) emerged as a potential energy source owing to

several desirable attributes – high organic and low sulphur contents. Other

wastes originating from animal and agricultural farms also has a high

proposition of organic matter an also be utilized for energy recovery.

The primary objective of National Master Plan (NMP) is to provide additional

power generation capacity in a decentralized manner through projects for

energy recovery from urban and industrial wastes in a cost effective and

proven manner using technologies that are applicable to the Indian

community, conditions, and support ongoing adaptation to meet

implementation needs and also provide vital solutions to the environmental

problems including reduction in GHG emissions.

Waste-to-Energy projects form an integral but small part of the overall waste

management strategy. Its future growth is, hence, inseparably linked with the

progress made by the country in waste management.

At present, MNES is implementing a Program on Energy Recovery from

Urban Wastes with the following objectives:

To harness the available potential of MSW-to-energy;

To promote the setting up of projects for recovery of energy from urban

wastes; and,

To create a conducive environment for the development and

implementation of waste-to energy projects.

As per MNES the potential of the MSW for conversion to energy is presented

as bellow.


Period MSW Generated (TPD) Power Generation

(MW)

2002 97174 1638

2007 130927 2266

2012 189986 3276

2017 265834 4566

Under the Municipal Solid Wastes (Management & Handling) Rules of

December 2000, all Class I cities have to provide proper treatment and

disposal facility for MSW. This translates to a very significant potential for

WTE projects.

The rationale for the targets and time frame for the NMP is based on

achieving the Waste-to-Energy potential of Urban and Industrial sectors as of

2002 by the end of the 12th Five Year Plan (2017).

For the Eleventh and Twelfth Five Year Plans the targets are based on the

successful implementation of the above strategies and accelerated growth in

implementation of WTE projects to achieve the final targets at the end of the

Twelfth five year plan.

Based on the above rationale, the targets and time frame for the period 2004

to 2017 are developed and are presented as bellow.


Source: MNES

From the analysis of Commercial Viability, it is evident that no subsidy

is required for MSW to Energy Projects during the 11th and 12th FYP.

The role of the Government in form of financial support is hence not

required. Since however these projects are environmentally necessary

and socially relevant the NMP provides for funds at a reasonable

interest rate through a credit line to encourage speedy implementation

of such projects.

3.2 REGION WISE WTE POTENTIAL IN INDIA

As Municipal Solid Waste (MSW) management is the primary responsibility

of the Local Bodies and at present gets some financial support from the

MoUD. Support from MNES is restricted to Waste-to-Energy projects only.

For summarizing the waste potential the cities were divided into the four

categories based upon the population of the city (Year 2001). The

characteristics of the Cities are defined as:

1) South Region


2) North Region

3) Western Region and

4) Eastern Region

City is considered as big or small depending on its population. The criteria of

defining big city or small city is as under –

Sr. No. Categories Population

1 Very Big Population More Than 15 lacs

2 Big City Population between 10 to 15 lacs

3 Medium City Population between 5 to 10 lacs

4 Small City Population < 5 lacs

5 Megacity Population more than 50 Lacs

6 Metropolis Population between 10 -50 Lacs

7 Sub-Metropolis Population between 5-10 Lacs

8 Class I Population more than 1 lacs

9 Class II Population between 0.5 to 1 lacs

10 Class III Population between 0.2 to 0.5 Lacs

11 Class IV Population between 0.1 to 0.2 Lacs

12 Class V Population between 0.05 to 0.1 Lacs

13 Class VI Population More Than 0.05 Lacs


1) South Region

On the basis of above criteria, Cities in Southern India are divided in

following categories

Sr. No. Categories No. of Cities

1 Very Big 3

2 Big City 1

3 Medium City 11

4 Small City 94

The class I cities of the southern region generate about 24720 tons of solid

waste every day, of which about 10215 tons is generated from the very big

cities like Hyderabad, Chennai and Bangalore. The big cities in the zone

generate about 490 tons of solid waste and medium size cities generate solid

waste to a tune of about 4325 tons per day (17% of the total solid waste

generated in the region). The total solid waste generation in the small cities is

about 39% of the generation in the region, which is about 9690 tons/day. The

quantum of solid waste generated in each category of city is shown in pie

chart below.

42%

2% 17%

39%

MSW Generation in South Region

very Big Big Medium Small


2) North Region

On the basis of above criteria, Cities in Northern India are divided in

following categories


1 Very Big 4

2 Big City 7

3 Medium City 11

4 Small City 96

About 29682 tons of solid waste is generated every day in class I cities of

northern region of the country, of which about 13110 tons is generated from

the very big cities like Delhi, Kanpur, Lucknow and Jaipur. The big cities of

the region generate about 4372 tons per day, medium size cities generate

solid waste to a tune of about 4137 tons per day (14% of the total solid waste

generated in the region). The total solid waste generation in the small cities is

about 27% of the generation in the region, which is about 8063 tons/day. The

quantum of solid waste generated in each category of city is shown in pie

chart bellow.

44%

15%

14%

27%

MSW Generation in North Region



3) Western Region

On the basis of above criteria, Cities in western India are divided in following

categories


1 Very Big 7

2 Big City 6

3 Medium City 13

4 Small City 69

About 28785 tons of solid waste is generated every day from class I cities of

western region, of which about 18479 tons is generated from seven very big

cities. Around 2790 tons of solid waste is generated from big cities. The

medium size cities generate solid waste to a tune of about 2958 tons per day

(10 % of the total solid waste generated in the region). The total solid waste

generation in the small cities is about 16% of the generation in the region,

which is about 4559 tons/day. The quantum of solid waste generated in each

category of city is shown in pie chart below.

64% 10%

10%

16%

MSW Generation in Western Region



4) Eastern Region

On the basis of above criteria, Cities in Eastern India are divided in following

categories


1 Very Big 1

2 Big City 2

3 Medium City 6

4 Small City 92

About 13986 tons of solid waste is generated every day in the eastern region

of the country, of which about 6962 tons is generated from the city of

Calcutta. The big cities generate about 934 tons per day and medium size

cities generate solid waste to a tune of about 1158 tons per day (8.2 % of the

total solid waste generated in the region). The total solid waste generation in

the small cities is about 35% of the generation in the region, which is about

4931 tons/day. The quantum of solid waste generated in each category of the

cities in eastern region is presented in pie chart below.

50%

7%

8%

35%

MSW Generation in Eastern Region



3.3 MUNICIPAL SOLID WASTE GENERATION -

The large quantum of diverse wastes originating from urban and industrial

activities can be considered as a valuable renewable energy resource.

As per MNES structural database quantum of solid wastes generated by 299

(Class I) and 36 (Class II) cities. The total quantity of the urban waste has

been estimated to be 64000 TPD of solid. The energy potential that can be

realized from solid waste by adopting thermal processes from MSW has been

estimated to be 1300 MW.


Parameter MSW Capacity (TPD)

>1000 500-1000 500-150 <150

Grade A Cities

Zones

North 4 6 3 11

South 3 3 13 12

West 5 2 8 5

East 1 0 3 7

Total No. of Cities 13 11 29 35

Waste Quantum

Range (TPD) 1150-9786 515-865 150-475 45-140

Energy Potential

Range (MW) 15-143 Jul-17 02-Aug 0.67-2

Grade B Cities

Zones

North 1 2 6 45

South 0 2 10 50

West 1 2 11 36

East 0 2 5 36

No. of Cities 2 8 32 167

Waste Quantum

Range (TPD) 1079 -2142 502 - 712 152-359 25-148

Energy Potential

Range (MW) 16 - 31 07-Nov 1.8-4.7 0.37-2.7

Source: MNES


As per Ministry of Non Conventional Source power generation potential are

6913 MW based on 50:50 proportion of biological and thermal WTE

conversion options on twelfth (2012-2017) five year plan.

Zone-wise distribution of cities on MSW generation rates

MSW

Generation

City / Category

Total

TPD %

North South West East

TPD

No.

of

Cities

TPD

No.

of

Cities

TPD

No.

of

Cities

TPD

No.

of

Cities

> 1000 14309 5 10214 3 17648 6 6963 1 49134 51

500 – 1000 3044 5 503 1 1696 2 628 1 5871 6

250 – 500 4297 12 4597 12 3410 10 568 2 12872 13

150 - 250 1199 6 2366 13 2155 12 1047 6 6767 7

50 – 150 6441 82 7041 80 2378 27 2907 38 18766 19

< 50 391 8 - - 1499 38 1874 53 3764 4

Total 26274 80 24977 93 29231 71 15987 55 97173 100

Projections of MSW to Energy Generation potentials

Sr. No. Year MSW Generation

(TPD)

Energy Potential

(MW)

1 2002 96419 1455

2 2007 135213 2448

3 2012 199952 4064

4 2017 260881 6913

The potential energy recovery estimates based on biological and thermal

technologies for handling urban solid waste equivalent to total 64,000 TPD

generation of MSW are shown in Table below. The estimated

powergeneration potential from MSW are 1461 MW (2001-02), and 2667,

3275 and 4565 in the year 2007, 2012 and 2017.


Power Generation Potentials based on MSW/WTE technologies

Sr. No. Details Unit

Five Year Plans Target / Potential

2001-

02 2006-07 2012-13 2016-17

A. Capacity: >1000 TPD MSW Generation

1 No. of Cities 15 19 28 41

MSW

Generation TPD 49135 79972 127748 195526

Energy

Potential MW 835 1400 2230 3388

B. Capacity: 500 - 1000 TPD MSW Generation

2 No. of Cities 9 19 28 35

MSW

Generation TPD 5870 13184 19610 24120

Energy

Potential MW 110 232 351 416

C. Capacity: 250 - 500 TPD MSW Generation

3 No. of Cities 30 40 56 64

MSW

Generation TPD 10605 14098 19295 23542

Energy

Potential MW 186 246 304 382

D. Capacity: 150 - 250 TPD MSW Generation

4 No. of Cities 30 47 60 76

MSW

Generation TPD 5518 8953 11504 15093

Energy

Potential MW 87 143 192 253


E. Capacity: 150 - 250 TPD MSW Generation

5 No. of Cities 215 174 127 83

MSW

Generation TPD 15098 14720 11829 7554

Energy

Potential MW 243 246 198 126

F. Total

MSW

Generation TPD 86226 130927 189986 265835

Energy

Potential MW 1461 2267 3275 4565

3.4 IMPORTANCE OF SOLID WASTE MANAGEMENT : CONCEPT OF WASTE TO

ENERGY

Waste-to-energy concept is a matter of great concern to various stakeholders

- urban local bodies, the state government, state pollution control boards, the

environmental service providers and the public at large owing to the multiple

benefits of resource recovery, energy recovery, waste management and

disposal, environmental compliance, reduced GHG emissions and

environmental impacts.

3.5 REDUCTION IN GREEN HOUSE GAS (GHG) EMISSIONS -

The waste to energy plants will also reduce the emission of the GHG by

capturing the gas generated and converting it into electricity. Thus;

accomplishing the objective of the providing vital solution to the

environment.

The quantum of the GHG that will be captured while achieving the targets is

illustrated through figure bellow. Around 228500 tons of carbon equivalence

GHG will be captured before the end of the twelfth five-year plan. This


quantum is based on the total estimated potential of energy generation from

MSW and industrial wastes.

Above all figures shows the huge potential of Waste to Energy projects in

India. To achieve above targets government has announced some incentives.

Summary of the Policies of the Various States

Land Garbage Power

Uttar

Pradesh

@Rs.1/sq.m/yr. Free at site @ 2.25/unit

escalated 5%

(94 – 95)

Madhya

Pradesh

Use of Govt. land,

if available, will

be permitted for

30 years.

Otherwise, land

will be made

available at

acquisition cost

Agreed to be

provided free of

cost for specific

projects. Royalty

to be paid to MC.

Rs. 2.25/unit

(94-95)

Tamil Nadu @Rs.10,000/acre

/yr. For 30 years,

near/at dumping

sites

Can be lifted free

from dumping

sites

@ Minimum

tariff quoted

by

entrepreneurs


Andhra

Pradesh

On lease. Terms

not specified

Preference to

those who lift at

their cost or lift

50% and pay

royalty

-

Karnataka - - Rs.2.60/unit

(1997-98)

Haryana - - @2.25/unit

(1994-95) +

5%

escalation

every year

Maharashtra At nominal lease

rent

MC will take

responsibility to

provide requisite

MSW for the

projects

@2.25/unit +

5%

escalation

every year

Summary of Indian Legal Framework for WTE Projects

Acts/ Rules/

Notifications

Brief Description Remarks

The Water (Prevention

and Control of

Pollution) Act, 1974

Provides for the

prevention and control

of water pollution as

well as restoration of

water quality

WTE projects

discharging

wastewater from the

units will have to

conform to the rules

prescribed under this

Act.

The Water (Prevention

and Control of

Provides for the levy

and collection of a cess

For abstraction and

use of water for the


Acts/ Rules/

Notifications


Pollution) Cess Act,

1977

(tax) on water

consumed by persons

carrying on certain

industries and by local

authorities

unit.

The Air (Prevention

and Control of

Pollution) Act, 1981

Objective is to prevent,

control and reduce air

pollution including

noise pollution

Company will have to

control emissions of

dust and noise, during

the construction and

operation phase,

including exhausts

from vehicles.

The Environment

(Protection) Act, 1986

An umbrella legislation

that takes into

accounts all the aspects

of environment.

Management of

hazardous chemicals,

wastes, micro-

organisms, etc. also

included

In general, the WTE

plants will have to

consider the

requirements under

the EP Act. This is

likely to include the

EIA notification as

well.

Environment

(Protection) Rules,

1986 and their

amendments from

time to time(up to

2001)

It gives standards for

emission/ discharge of

pollutants, procedures

for taking samples,

Compliance required.

Bio - Medical Waste These rules apply to all Bio - medical waste


Acts/ Rules/

Notifications


(Management and

Handling) Rules, 1998

persons who generate,

collect, receive, store,

transport, treat,

dispose or handle bio -

medical waste

in any form

rules are applicable to

WTE projects and

their compliance is

required

Notification for Coastal

Regulation Zone (CRZ),

1991

Declared the coastal

stretches of seas, bays,

estuaries, creeks, rivers

and backwaters which

are influenced by tidal

action, up to 500 m

from the high tide line

and the land between

the low and high tide

lines

This shall be

applicable if the WTE

plant falls under the

CRZ designated area..

The Hazardous

Waste(Management

and Handling) Rules,

1989(amended 2000)

Prescribe guidelines

for handling hazardous

wastes

Hazardous waste that

is likely to be

produced in the event

of WTE projects have

to follow these rules.

Municipal Solid Waste

Rules

These rules apply to all

those municipal

authorities that are

responsible for

collection, segregation,

storage, transportation,

processing and

Compliance required.


Acts/ Rules/

Notifications


disposal of municipal

solid wastes.

Indian Electricity Act Governs the relations

between the consumer

and licensee supplying

electrical energy to the

consumer or other

licensees

Issue of licensees for

the generation,

distribution and

supply of electrical

energy. Compliance

required.

Policies and Guidelines

of MNES

Prescribes various

incentives and

eligibility

criteria for setting up

of Waste-to-energy

plants.

Proponents should be

complying with the

eligibility criteria to

avail the incentives

promoted by MNES.

State Level Policies Describes the policies/

incentives given by

various state

governments to

promote WTE projects

Proponents should

comply with various

provisions policies

and guidelines of

different states

The 74th Constitutional

Amendment

Delegates the

responsibility of MSW

disposal with the

municipal

corporations.

Municipal

Corporations should

find efficient ways of

MSW treatment and

disposal.


3.6 FLYASH BRICK MARKET VIABILITY

USES AND APPLICATIONS

Fly ash bricks are used in building industry.

Fly ash Sand-Lime bricks Building industry:

Fly ash sand-lime bricks can be used as an alternative material for burnt clay

bricks which is one of the important building materials used for construction

of housing and buildings. The fly ash building bricks are unable in all types of

brick masonry works and can substitute the conventional burnt clay bricks in

nearly all applications.

Advantages of Fly ash sand-Lime bricks:

1. Uniform size, require less quantity cement mortar.

2. Can be used as facing bricks without any external plastering.

3. Lower bulk density.

4. More resistant to salinity and water seepage.

5. Utilization of waste and conservation of soils.

6. Saving in fuel.

MARKET SURVEY

Construction work is basis to out development efforts - for agriculture and

industry for the development of water, power transportation and

communication system and certainly for housing the people so that their living

standard can be upgraded to promote their welfare and happiness.

Construction accounts for about 50% of the total development all our lays; but

the scale of Housing shortage along should be sufficient to dispel any illusions

as to be adequacy of our present efforts. It is imperatives therefore, that no

lower the construction cost substitute; materials of improve performance can

be developed and made available for mass scale use in developed and made


available for mass scale use in urban as well as rural areas. Lime an excellent

cementing material in terms of its workability imperviousness, inherent

strength etc. is ideal for this purpose. Lime along in conjunction with

puzzolenic material like fly ash can prove a good substitute for cement. In

India is the estimate production capacity of all the brick industries is about

900 million which is far below the market demand and the shortfall is likely to

increase manifold in future years during which a large increase in the building

activity is anticipated. It is well recognized that traditional method of hand

moulding cannot cope with the heavy demand.

Utilization of Bottom Ash

As a by-product from the treatment of Municipal Solid Waste in Waste to

Energy plants based on AV & UE’s Reverse Push Reciprocating Grate

Technology, 35% of ash is generated from the total waste incinerated. Bottom

ash being the major stream, it can be utilized or sent to landfill.

Bottom Ash Generation

AV & UE based Waste to Energy facilities produce clean renewable energy

through the incineration of Municipal Solid Waste. The non combustible

fraction of the waste in the furnace forms a residue (ash) remaining on the

grate at the completion of the combustion cycle. This residue is referred as

bottom ash consisting primarily of glass, ceramics, ferrous & non ferrous

metals & minerals. Hitachi Zosen power plants equipped with the most

modern pollution control equipment to clean emissions. MSW volume is

reduced by 90% which results in generation of electricity and the remaining

residue is bottom ash which is tested and put to reuse.

Utilization of Bottom Ash

The bottom ash can be utilized for various purposes consisting for brick

manufacturing to road, building & other civil construction works. Bottom ash

can further be utilized for embankments & filling material for reclamation.


In Kolhapur the bottom ash is in demand with various brick manufacturers.

There are 10 to 15 brick manufacturing kilns located within a radius of 30 Kms

from the project site. Some of the popular brick manufacturers with whom

discussion took place are as follows:

1. Essarcon

2. Narasinha Tiles Center

3. Tara Tiles Pvt. Ltd.

4. JD Group

5. Creative Pavers Manufacturing Co.


Appendix

GOVERNMENT OF ANDRA PRADESH

A B S T R A C T

MUNICIPAL SOLID WASTE MANAGEMENT – Recommendations of the

Technical

Committee and the State Level Official Committee – Accepted – ordered and

sued.

MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (F)

DEPARTMENT

G.O.RT. NO. 4425 Dated: 16.12.1995

Read:

1. G.O. RT No. 1117 M.A. (F) Department, Dt. 26.9.1995

2. G.O. RT No. 1133 M.A. (F) Department, Dt. 29.9.1995

3. From “the Secretary to Government,” D.O. Lr.No. 20340/F3/95,

dt.22.11.1995.

4. Minutes of the Meeting of the State Level Official Committee

headed by Chief Secretary on 24.11.1995.

O R D E R:

In the G.C. 1st and 2nd read above Government have constituted the

Technical Committee and the State Level Official Committee to undertake

Techno-Economic assessment of the bids received by this Municipal

Corporation of Hyderabad in connection with establishment of Power

Generation Plant by using garbage and other Municipal Solid Waste or inputs.

The Technical Committee after examination of the bids received made certain

recommendations for the consideration of the State Level Official Committee

for taking further decision. The State Level Official Committee which met on

24.11.1995 under the Chairmanship of Chief Secretary has considered the


recommendation of the Technical Committee and accordingly accepted the

recommendations of the Technical Committee which are given below.

i) All the technologies offered be tried out.

ii) Preference to be given to the bidders who offer free lifting of the garbage and

also take responsibility of that segregation of non-bio-degradable material

and their proper dispersal.

iii) Technical Committee to call prospective bidders who offered royalty only for

negotiations to convince them from lifting of garbage to the time of 50% of

their requirement.

iv) Only 50% of the total garbage generated is set apart for the promoters who

intend to lift this garbage free of cost to avoid possible dislocation of garbage

lifting in the event of these promoters failing to lift garbage and also to utilise

the available infrastructure with Municipal Corporation of Hyderabad for

lifting the garbage.

v) Tentatively Garbage allocations in the Municipal Corporation of Hyderabad

area are made as follows:

1. M/s. Global Business Development, Consultants, Virginia 600

TPDConsultants, Virginia

2. M/s. La Tech/Infrasystems Limited, Bombay 300 TPD

3. M/s. Quantum’s Tech. LLC, Texas 300 TPD

4. M/s. Navega Engineers Private Limited, Hyderabad 400 TPD

5. M/s. Salco International Limited, Hyderabad 400 TPD

-----------

Total 2000 TPD

vi) The allocation of areas for free lifting of garbage be clearly demarcated. They

may be partly in Municipal Corporation of Hyderabad area and partly in the

surrounding municipal area to suit the convenience of the parties.


vii) The power and water required may be arranged at the sites on payment

terms, Andhra Pradesh State Electricity Board and Hyderabad Metro Water

Supply & Sewerage Board shall make necessary arrangements to supply

power and water at the selected sites. Municipal Corporation of Hyderabad

may inform the requirements to the respective departments.

viii) The land required by the respective promoters be allocated on lease.

Wherever necessary further alienation or acquisition may be initiated by

Municipal Corporation of Hyderabad.

ix) The agreement to be concluded with the prespective, promoters be carefully

worded in consultation with the Standing Counsel of Municipal Corporation

of Hyderabad to avoid any possible future legal implications and safeguard

Municipal Corporation of Hyderabad interests.

x) To avoid delay in commissioning the plants, a performance guarantee of

2.5% of the total Project cost be obtained by way of Bank Guarantee/FD

pledged in favour of Municipal Corporation of Hyderabad.

xi) The existing general guidelines and policies for power purchase, wheeling,

banking etc, are to be followed.

xii) Municipal Corporation of Hyderabad shall ensure that the work on projects is

started within a maximum period of one month.

1. Municipal Corporation of Hyderabad may insist on installation of

incinerators at various major hospitals viz. Osmania General Hospital,

Gandhi General Hospital, N.I.M.S., Appollo, C.D.R.,etc. Municipal

Corporation of Hyderabad may also organise getting up General

incinerator for all other small hospitals to start it on no loss no profit

basis. Privatization of this central incinerator can be examined by

Municipal Corporation of Hyderabad. This may be worked out in

consultation with Andhra Pradesh Pollution Control Board.

2. Government after careful examination of the report of the State Level

Official Committee, accept the recommendations of the State Level


Official Committee and accordingly direct the commissioner,

Municipal Corporation of Hyderabad for initiating necessary further

action on these recommendations immediately.

3. Government also direct that the procedures adopted for the Municipal

Corporation of Hyderabad are approved by the State Level Official

Committee shall be applicable to all the Selection Grade Municipalities

and other Municipal Corporations in the State of Guntur, Warangal,

Kurnool and Visakhapatnam with the condition that the entrepreneur

shall be impressed upon to collect and lift garbage at his own cost in at

least 16th or 17thy area in each town closer to the garbage disposal

yard.

4. The Technical Committee constituted for Hyderabad Municipal

Corporation in the reference road, above, shall negotiate with the

companies who are interested to recycle solid waste into manure or

pelletisation to undertake the work in other Municipal areas. On the

recommendations of the Committee, the Municipal Corporations and

the Selection Grade Municipalities can enter into agreements with the

companies selected. Government also permit the Municipal

Commissioner of the Corporations and Selection Grade Municipalities

in the State to enter into lease agreements with the selected

entrepreneurs for leasing out the extent of land belonging to the

Municipality/corporation acquired for the establishment of plant and

machinery following the procedure laid down under the relevant Act

and Rules.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

C. ARJUNA RAO,

PRINCIPAL SECRETARY TO GOVERNMENT

To


The Commissioner, Municipal Corporation of Hyderabad

All this commissioners of Selection Grade Municipalities/Corporations

Copy to

Members of Committee

P.S. to Chief Secretary

P.S. to Principal Secretary, U.A. & U.D. Dept.

P.S. to Secretary, M.D and U.D Dept


VARIOUS POLICIES ANNOUNCED BY STATE GOVERNMENT FOR

FACILITATING WASTE TO ENERGY PROJECTS

MADHYA PRADESH

In line with the policy of the Government of India, the Govt. of Madhya

Pradesh has decided to give the following incentives for development of non-

conventional energy sources.

1. Any industry, institution or a private agency, desirous of installing a power

generating unit based on non-conventional energy sources like mini- micro

to hydel projects, wind energy, bio- energy ,solar energy etc. in Madhya

Pradesh shall be welcomed to establish such a unit & shall be eligible for

incentives.

2. The party may set up the unit either by itself or as a joint venture with M.P

UrjaVikas Nigam Ltd.

3. There will be no restriction on generation capacity. The parties may use the

power generated themselves at the point of generation or any other place or

sell it to MPEB or to a third party, but the third party must be an I.I.T

consumer of the Board.

4. For wheeling of power from the point of generation to any other place for the

party’s own use or for selling it to a third party, wheeling through MPEB’s

transmission /distribution system will be allowed on payment of 2%

wheeling charges .The state government will separately compensate MPEB

towards line losses etc. at the rate of 4% of the power wheeled. The wheeling

charges will be irrespective of the distance to which the power is wheeled.

5. Power generated through non – conventional energy resources will be

purchased by MPEB at the rate of Rs.2.25/unit .For sale of power to a third

party, the rates are to be settled mutually between generating party and third

party.

6. Electricity generated from non- conventional energy sources, sold to MPEB

or a third party or consumed by the party itself will be exempted from

payment of electricity duty for 5 year.


7. Any industrial unit which is a consumer of MPEEB and which establishes a

power generating unit from non – conventional energy sources for its own

use will be given exemption from the demand cut to the extent of 30% of the

installed capacity of non-conventional energy unit.

8. Metering equipment for the sale of power will be provided by the party at its

cost at the points decided by MPEB.

9. The transmission /distribution lines and transformers required for

transmitting power from non-conventional energy generating unit to the

nearest grid substation of MPEB and also equipment required for

synchronizing, protection etc.will be provided by the party as per

specifications of MPEB or these can be provided by MPEB at the cost of the

party. However, these lines /equipment will be maintained by MPEB , but the

party will be required to pay operation and maintenance charges as decided

by the MPEB.

10(I) Use of government land if available will be permitted to the party

initially for a period of 30 years subject to removal.

(II) In case of non- – availability of Government land, the Government will

acquire private land and made available to the part at acquisition cost.

No service charges will be payable.

11 Plant and machinery, which is installed for generation of power from non- –

conventional energy sources, shall be exempted from State sales Tax.

12. (I) Any eligible industrial undertaking setting up non- conventional power

generation system in the state of Madhya Pradesh will be allowed Sales

– Tax exemption or deferment or composite benefit to any one of its

industrial units on the investment on non–conventional power

generation system. Benefit under this scheme will be available for

maximum six years and quantum of sales Tax benefit will be available

up to the eligible investment on non- – conventional power generating

system. Such an entrepreneur will be required to indicate the name of

his industrial unit and give his option out of the aforesaid alternative

incentives at the time of application.


(ii) Sales Tax exemption – An industrial undertaking situated in Madhya

Pradesh will be eligible for Sales Tax exemption on the goods

manufactured and sold.

(iii) Sales Tax Deferment – Under the sales Tax deferment Scheme, the

recovery of Sales tax collected by the industrial undertaking situated in

Madhya Pradesh on the sale of goods manufactured by it, which is

payable to the state government will be kept deferred for the period

during which deferment is available, after expiry of which it will be

recovered in six annual interest free installments.

(iv) Composite benefit – Under this scheme, eligible industrial undertaking

can makecertain transactions under exemption and certain transaction

under deferment scheme and avail the benefit accordingly.

(V) Under the scheme of Sales tax Deferment or composite benefit, the

amount so deferred will be recovered in six annual installments

beginning from the next financial year, after the unit has exhausted its

eligible amount.

13. If any party setting up non- conventional power generation system in

Madhya Pradesh, sells its power generation to any other industrial unit (for

which rate of power will be settled as per mutual agreement between the

generator and user industrial undertaking can avail the exemption on the

sales tax of its deferment or composite benefit, etc to the extent of eligible

investment on non- conventional power generating system.

14. Power generating units based on non – conventional energy sources will be

treated like an industry and all the concessions applicable to new industrial

units will be applicable to these power generating units also.

15. The parties desirous of setting up non – conventional power generating

system will be required to give their applications to M.P UrjaVikas Nigam Ltd.

with a copy to Secretary, M.P. Electricity Board, and Jabalpur. After approval

by M.P UrjaVikas Nigam, the generating unit and also the user unit will be

required to enter into necessary agreements with M.P Electricity Board.


Generation of Electricity from the Garbage

Proposals from certain organisations – Policy decision taken by the

government –

Orders issued

MUNICIPAL ADMINISTRATION OF WATER SUPPLY DEPARTMENT

G.O.Ms.No.15 Dated: 17.1.1997

Read:

From the Commissioner, Corporation of Chennai,

D.O.lr.No.A7/1527/96 dated 3.10.1996

ORDER

Certain institutions have presented project proposals for generation of

Electricity form garbage collected in Chennai City area. They have requested

the Government for an assured supply of garbage, allotment of lands near the

dumping centers of Corporation of Chennai, and an assurance regarding

purchase of electricity produced by them out of garbage by Tamil Nadu

Electricity Board at an acceptable price.

The Government has examined these proposals in detail. The project if

implemented will not only help in solving the problem of finding new

dumping sites for garbage but also help us in the upgradation of overall

development. Considering the usefulness of the project a policy decision has

been taken on the various issues and accordingly the Government Issue the

following orders.

(i) Power plants using garbage as fuel come under the category of non-

conventional energy sources. Tamil Nadu electricity Board, has a particular

policy for power purchases from non-conventional producers, The present


purchased price for power from the producers of energy is Rs.2.25 kWh. 5%

increase each year from the year 1995-96.This rate will applicable to the

energy producing plants using garbage as fuel.

(ii) The developers of energy producing plants using garbage will be provided

with lands on lease basis near the garbage dumping centers of the

Corporation of Chennai at Perungudi, Vellacherry and kodungaiyur. The lease

rent would be fixed as Rs.10,000/- per acre per year and the lease period

would be 20 years.

(iii) TIDCO would call for bids for putting up of such plants in the city of Chennai

indicating the land availability and the purchase price of Tamil Nadu

Electricity Board as indicated in the paragraph (i) and (ii) above from the

promotion of such energy producing plants to quote the rate that they could

offer for garbage. TIDCO would also prequalify bidders if found necessary.

The bid proposals should be examined by the Managing Director, TIDCO and

sent to the Government. The government will issue orders on the Managing

Director TIDCO. This order issue with the concurrence of the Finance

Department vides its U.O.No.130/FS/1/97, dated 11.1.1997

(By the order of the governor)

K.A Nambhiar

CHIEF SECRETARY TO GOVERNMENT


To

The Director General of Municipal Corporation,

Chennai – 600003

The Commissioner, Corporation of Chennai, Chennai 600003 through mayor

The Managing Director, TIDCO, Chennai.

The Chairman, Tamil Nadu Electricity Board, Chennai – 2

The Accountant General, Chennai 600075

Copy to:

The Secretary to Government, Finance Department, Chennai-5

The Secretary to Government, Energy Department, Chennai-5

The Secretary to Government, Industries Department, Chennai-5

The Secretary to Government, Revenue Department, Chennai-5

M/s Satish Association, Chennai 600040

3.7 POLICIES AND GUIDELINES OF MNES

MNES has promoted the national program for the recovery of energy from

industrial and urban Wastes. Since this program seeks to promote setting up

of waste-to-energy plants, various financial incentives and other eligibility

criteria have been proposed by the MNES to encourage the participation in

waste-to-energy projects. These are listed below:

1) Financial assistance is provided by way of interest subsidy for commercial

projects.

2) Financial assistance is provided on the capital cost for demonstration

projects that are innovative in terms of generation of power from municipal/

industrial wastes.

3) Financial assistance is provided for power generation in STPs.

4) Financial incentives are given to municipal corporations for supplying

garbage free of cost at the project site and for providing land.

5) Incentives are given to the state nodal agencies for promotion, co-ordination

and monitoring of such projects.


6) Financial assistance is given for carrying out studies on waste to energy

projects, covering full costs of such studies.

7) Assistance is given in terms of training courses, workshops and seminars and

awareness generation.

3.8 POWER PURCHASE AGREEMENT

The Power Purchase Agreement (PPA) has to be signed between the project

proponent and the state electricity board for the purchase of electricity that

is generated through waste-to-energy plants. The PPA defines the rate at

which the electricity will be purchased and other terms and conditions

mutually agreeable to the State Electricity Board and the project proponent.

A sample format of power purchase agreement for MSW to energy projects is

included as Appendix VI and can be used as a guide line for specific

requirement of an local WTE project. Based on this PPA, the project

proponent can take further steps for setting up the WTE plant. In case of any

disputes on PPA or the tariffs for the purchase of electricity, the project

proponent or SEB can file an appeal before SERC, which is a quasi-judicial

statutory authority appointed to resolve such issues. If the orders passed by

SERC are not acceptable to either SEBs or project proponents, they can be

appealed against in the High courts/ Supreme Court for final orders. The

policies introduced by various state governments for purchase of electricity

generated from MSW projects are given below.

3.9 CONCLUSION -

From the above data it can be concluded that there is huge potential for

municipal solid waste management projects throughout India. Projects are

on hand is social necessity as these projects are reducing the environment

issues of waste management and on the other hand manufacturing power

which is also the need of the hour.

In view of this, the project under consider the viable from marketing point of

view also.


Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat

Participation Private /co-

operative Private Private Private Private Private Private Private Private

Rates for

2% of energy

2% for sister

6% of

energy

2% within

5KM & 2% of

energy

2% of

energy

2% of

energy

2% of

energy

2% of

energy Wheeling

concerns,15%

for others

12.5 %

beyond

5Km

Banking Allowed for 12

months

Allowed 2% Allowed for

12 months

Allowed

for 12

months

Not

allowed

Allowed

for 12

months

Allowed

at 25 Allowed

for 12

months

Allowed

for 12

months Charge for 8-12

months


Incentive Maharashtra Tamil Nadu Karnataka U.P M.P Punjab A.P Haryana Gujarat

Buy back

At Rs. 2.25 per

unit; Escalated

At Rs 2.25 per

unit Escalated

Rs 2.25/

unit

Rs 2.25/

unit

Rs 2.25

/unit

Rs 2.25/

unit

Rs 2.25/

unit

Rs 2.25/

unit

Rs 2.25/

unit

at 55 (94-95) at 5% for escalated

5%

escalated

5%

escalated

5%

escalated

5%

escalated

5%

escalated

5%

5 years (95-96) 94-95) (94-95) (94-95) (1997-98

base) (94-95)

(w.e.f 1-4-

2000)

Third party Allowed Not Allowed

Allowed to

link to Allowed Allowed Allowed

Allowed

less Allowed Not

allowed Sale HT tariff than HTT

Other Participation in

equity by SEB

for Cogen.

-

Subsidy

@Rs 25

- -

As to

other

- - -

Incentives

Lakhs/MW

for Cogen

only

industry


CHAPTER-4

FINANCIAL VIABILITY

4.1 EVALUATION PARAMETERS FOR FINANCIAL VIABILITY

After technical feasibility, we will analyze the feasibility of the project. While

considering Financial feasibility, we have appraised the projected with

reference to following aspects –

a. Overview of the audited balance sheet as at 31/03/2014, 31/03/2013&

31/03/2012of SHEL, SHIIPL &KGEPL

b. Cost of scheme and Means of Finance

c. Financial projections including assumptions

d. DSCR

e. Sensitivity Analysis

f. Conclusion

g. Banking aspect of the proposal

h. Suggestions to the company.

4.2 OVERVIEW OF OVERALL FINANCIALS

4.2.1 Sunil Hitech Engineers Limited

Sunil Hi Tech Engineers Limited (SHEL) is a flagship company of the Group

which is incorporated in May 1998. The promoter of the Company is a first

generation entrepreneur and has been successfully running the business for

more than 28 years. SHEL is engaged in the fabrication, erection and

commissioning works of Power plants. SHEL is an ISO 9001:2008 &

18001:2007 OHSAS certified Company listed with BSE & NSE.


Key Figures

Year ending 31/03/14 31/03/13 31/03/12

TNW 315.83 285.38 253.71

Net Block 119.92 118.35 141.17

Sales 1432.24 1,096.02 855.59

PBDIT 141.87 131.58 121.38

PAT 24.98 27.93 23.97

Cash accruals 49.35 57.52 54.80

4.2.2 Sunil Hitech India Infra Pvt. Ltd.–

SHIIPL is incorporated in June 2012 as a wholly owned subsidiary company of SHEL. The

company is established to undertake infrastructure projects focusing on Roads, Urban

Infrastructure, Solid waste management etc. The company has started its commercial operation

in FY 2014.

Key Figures

Year ending 31/03/14 31/03/13 31/03/12

TNW 1.84 - -

Net Block 5.72 - -

Sales 36.95 - -

PBDIT 2.48 - -

PAT 0.84 - -

Cash accruals 0.85 - -

4.2.3 Overview of audited financials of KGEPL–

KGEPL is an newly formed SPV incorporated specially for the execution of project

related to Setting up Waste-to-Energy (WTE-180 TPD) Processing Plant for

power generation (1.80MWh) at Kolhapur, Maharashtra allotted by

Kolhapur Municipal Corporation.

Key Figures

Till date no commercial operation has started.


4.3 PROJECT COSTS & MEANS OF FINANCE (KGEPL)-

4.3.1 Project cost –

Sr. No. Particulars Total Cost in Lacs

1 Plant & Machinery 1666.68

2 Civil Costs 613.42

3 Overheads & Contingency Exp. @ 2%

45.60

4 Pre-operative Expenses @ 2%

45.60

5 Financing Costs 1.50% 34.20

6 Interest During Construction 77.18

7 Total Project Costs* 2,482.69

4.3.2 Project cost –

Particulars Amt. Rs. in Lacs %

Owners Contribution 868.94 35%

Debt Finance 1613.75 65%

Total 2482.69 100%

Observations:

a. The total project costs considered is excluding the power transmission costs.

b. KGEPL will contribute around 35% of the project costs, Rs. 868.94 Lacsas its

own contribution, while it will avail term loan of Rs. 1613.75Lacs, which is

65% of the total project costs.

c. Bank must ensure that sufficient amount of own contribution is brought in by

the promoter and is supported by Certificate from Chartered Accountant.


4.4 ASSUMPTIONS OF THE PROJECT –

1. The project implementation period is 08months. During this period the total

project from concept to commissioning shall be completed and project shall

start yielding revenue after completion of construction period.

2. The plant will run for 292 days in threeshifts.

KGEPL will have to pay land lease rental as per agreement with Kolhapur

Municipal Corporation (KMC)

3. Municipal solid waste (MSW) of around 180 TPD would be collected by KMC

by using their own mechanism and would be provided to KGEPL up to project

site.

4. The daily un-segregated MSW of 180 tons, will be utilized for generation of

power (1.8 MWh) .

5. Plant load factor considered by KGEPL is assumed at 80.00% throughout the

years. Since the plant load factor looks very optimistic, financing banker has to

take assurance from the technology provider that given the site condition and

waste characteristic, the plant on an average will be able to operate at 80.00%

capacity.

6. Power rate assumed at Rs. 5.88/- per unit with no escalation of throughout

the financial projection.

“Maharashtra State Electricity Board (MSEB) shall purchase power generated

from municipal solid waste/sewage/biomass/agro waste at the rate of

Rs.2.25 per unit. The financial year 1994-95 has been taken as the base year

for this rate which would escalate at the rate of 5% per annum”.

As per MSEB basis rate for 2015 is Rs.5.97/- per unit. And petition by All

MSW Waste to Energy project developer for escalation of rates. The

requested rates for different states are as follows,


Sr.No. Name of the state Ref. Petition No. Power purchase /

unit

01. Maharashtra - 6.42

02. Gujrat 1052/2010 6.80

03. Delhi 35/2012 6.44

04 Harayana -- 6.41-6.53

By considering MSEB power purchase rate and present petition rates, KGEPL

has assumedthe rate of Rs. 5.88/- per unit on conservative basis.

7. The realization price from the sale of Fly Bottom Ash is considered at Rs. 150

per ton.

8. Tipping Fees Income considered is Rs. 308 per ton with no escalation clause.

9. Operation and maintenance expenses have been considered at Rs. 165 Lacs

per annum with escalation of 3% every year..

10. Rate of Interest assumed for term loan is 13.50 %. Repayment period of

10.00 years in structured manner in ballooning method.

11. Construction year has been assumed for 8 monthsand moratorium period of

1 Year.

12. The income so generated from the project is 100% exempted u/s 80IA of the

Income Tax Act, 1961 for a span of 10 years

Observations on assumptions –

a. Working days –

Working of 292 days in a year for three shifts is reasonable considering the

nature of the project.

b. Installed capacity –

Installed capacity of the plant has been calculated and derived and assumed as

described in Technical viability chapter.

c. Raw Material consumption –


MSW collection and usage ratios assumed are as per technical specifications

and sounds reasonable.

d. Power consumption –

Power generation assumed is as per technical specifications and sounds

reasonable.

e. Revenue generation from sale of electricity generation –

As per MSEB basis rate for 2015 is Rs.5.88/- per unit and petition by all MSW

Waste to Energy project developer for escalation of rates. The requested

rates for different states are as follows,

Sr.No. Name of the

state

Ref. Petition No. Power purchase

/ unit

01. Maharashtra - 6.42

02. Gujarat 1052/2010 6.80

03. Delhi 35/2012 6.44

04 Haryana -- 6.41-6.53

By considering MSEB power purchase rate and present petition rates, KGEPL

has assumed the rate of Rs. 5.88/- per unit on conservative basis.

f. Plant Load factor –

Plant loan factor considered by KGEPL is assumed at 80.00% throughout the

years. Since the plant load factor looks very optimistic, financing banker has to

take assurance from the technology provider that given the site condition and

waste characteristic, the plant on an average will be able to operate at 80.00%

capacity.

g. Operation and Maintenance Expenses considered seems realistic.

Observations on financials -


1. We have assessed the assumptions on theoretical calculations observed that

the turnover projected appears to be achievable. (only if the assumption of

80.00% of plant load, is achieved)

2. Same is the case of expenditure estimation as well.

3. The promoters are ready to infuse capital of Rs. Rs. 868.94Lacs. Bank will

have to ensure infusion of sufficient amount of capital to be brought in by

KGEPL as own contribution and should take on records certificate from

chartered accountant and return of allotment of shares on record.

4. As per standard acceptable guidelines of project appraisal, standard expected

DSCR is 1.33. In the projected financials, average DSCR calculated is 1.78which

is as per the standard norms. The management as well as financing banker will

have to closely monitor the implementation of the project.


4.5 Calculations of DSCR is as under –

DSCR 31/Mar/16 31/Mar/17 31/Mar/18 31/Mar/19 31/Mar/20 31/Mar/21 31/Mar/22 31/Mar/23 31/Mar/24 31/Mar/25

PAT + Dep +

Int 138.42 557.27 586.64 508.58 580.12 570.49 480.70 586.25 583.35 491.02

Interest 54.42 216.77 202.61 187.36 167.75 143.78 117.64 87.14 52.29 17.43

Loan

Repayment

64.55 96.82 129.10 161.37 193.65 193.65 258.20 258.20 258.20

Total

Obligation 54.46 281.32 299.43 316.46 329.12 337.43 311.29 345.34 310.48 275.63

Original DSCR 2.54 1.98 1.96 1.61 1.76 1.69 1.54 1.70 1.88 1.78

Average DSCR 1.78

Min DSCR 1.54


4.6 The Project IRR calculated is 23.24% which is above the WACC of 8.63%. The

Equity IRR is 34.06% which is considered to be reasonable.

Calculations of IRR is given as annexure in “Financials”

4.7 The financials based on above assumptions has been attached as an

annexure named “Financials”.

We have verified the financials which are drawn up as per above

assumptions on mathematical calculations and found the same correct.

4.8 Evaluation criteria:

Sr. No. Particulars Comments

1. Overall financial effects Reasonable, achievable and

acceptable as described above.

2. Soundness, scientific quality

and technological merit

The project of the company is unique

one. It deals with conversion of

municipal solid waste to power and

compost. Company proposes to

implement Reverse Push

Reciprocating Grate technology. The

equipments will be source from

Articulated Vessels & Utility

Engineers (P) Ltd. (AV-UE).

3. Potential for wide application

and benefits expected to

accruefrom

commercialization

In power-starved countries like India,

there is tremendous potential for

products manufactured by KGEPL.

4. Adequacy of the efforts taken KGEPL has taken / is taking adequate

efforts to establish the products.


5. Capability of the R & D

institutions in the proposed

action network.

Methodology / technology used by

company well accepted and tested as

such.

6. Organizational and

commercial capability of the

enterprise

The Board of Directors of KGEPL is

well balanced between technocrats,

finance expert and hard core technical

members.

7. Reasonableness of the

proposed cost and financing

pattern

Cost of project finalized is reasonable.

Total promoters contribution for the

proposed project is Rs. 868.94Lacs as

its margin which is around 35% of the

project cost.

4.9 Conclusion –

The comprehensive scheme would address the long term profitability. It

would also help Company to address and solve the issue of MSW

management and would enable company to effectively address crisis in its

totality and bring liquidity as well to protect the interest of all stakeholder

including the lenders.

Therefore, after detailed financial appraisal, we are of the opinion that the

project of KGEPL is proper for implementation and after its due

implementation; KGEPL would be in a position to recover the position as

stipulated in financials. Thus, it being financially viable proposal may be

accepted by financing bankers as fair banking risk.


CHAPTER – 5

SWOT ANALYSIS

5.1 STRENGTHS

Long existence of parent company in market.

Generated maximum power generation for MSW.

Self-sufficiency in technology and technical processes.

Existence of plant near the vicinity of raw material and it is available free of

cost.

Experienced and balanced management team.

The land lease cost is negligible.

No revenue sharing with corporation.

The produce generated from the project is easily acceptable in market.

5.2 WEAKNESSES

The project is unique one as to its applicability and implementation in India.

Mitigant –

The technology used by company is tested by technology to be modified to

incillary boiler. The said company is confident of successful implementation.

5.3 OPPORTUNITIES

If such project is successfully implemented, it can be replicated all over India

basis in almost all corporations.

5.4 THREATS

Product diversity may create problems in future.

Net energy recovery may suffer in case of wastes with excessive moisture

content and inerts.


CHAPTER – 6

BANKING ASPECTS OF THE PROPOSAL

6.1 Banking Aspects of the Proposal –

Following banking aspects of the proposal need the attention of the financing

bank/s:

1. To sanction loan as per standards terms and conditions, after taking

mortgage of security.

2. To take comprehensive insurance of building, plant and machinery, stock.

3. To obtain declaration of non-withdrawal or non-payment of unsecured

loans, if any during the currency of the loan.

4. Bank will have to ensure infusion of sufficient amount of capital to be

brought in by KGEPL as own contribution and should take on records

certificate from chartered accountant and return of allotment of shares on

record.

5. During the implementation of the project, the financing banker should

ensure that all the statutory clearances and permissions have been

obtained by the client.

6. We have relied on the information provided by KGEPL for the total project

costs.

7. Lending banker may keep continuously monitoring of the project and debit

and credit summations.


8. Plant loan factor considered by KGEPL is 80.00% throughout the years

which is reasonable & achievable. The financing banker needs to take

assurance from the technology provider that given the site condition and

waste characteristic, the plant on an average will be able to operate at

80.00% capacity.

9. The proposed project of MSW has been awarded to RSSPL by KMC. Further

a Joint Venture agreement is signed between RSSPL, KGEPL (SPV) and

Sunilhitech Engineers Ltd. (SHEL) (Parent Company of SHIIPL), by the

virtue of shareholders agreement which RSSPL hold around 12% stake and

SHIIPL along with its subsidiary and/ or Affiliates hold 88% stakes in

KGEPL.


CHAPTER - 7

CONCLUSIONS & RECOMMENDATIONS

Rochem Seperations Systems (India) Pvt. Ltd (RSSIPL) has been awarded a

letter of award on 17.09.2013 by Kolhapur Municipal Corporation (KMC) for

development of MSW processing facility for treating the MSW collection from

the city of Kolhapur on Design, Build, Finance Operate and Transfer (DBFOT)

basis.

The proposed project is for setting up Waste-to-Energy (WTE-180 TPD)

Processing Plant for power generation (1.8MWh), at Kolhapur, Maharashtra.

KGEPL is a special purpose vehicle (SPV) promoted by Sunilhitech Engineers

Ltd. (SHEL) and its subsidiary & Affiliates including Sunilhitech India Infra Pvt.

Ltd & Rochem Separations Systems (India)Pvt. Ltd (RSSIPL) with shareholding

of 88:12 respectively. A Joint Venture Agreement to this effect is already being

executed dt.20thFebruary 2014.

The Concession Agreement was signed between KMC and KGEPL is signed on

7th February 2014. By the virtue of Concession Agreement, KGEPL is setting up

a processing plant with a capacity of 180 TPD for conversion of MSW into

useful product (Power) at Kasaba Bavda village, Tehsil Kolhapur, District,

Kolhapur, Maharashtra on “DBFOT” basis for a period of 30 years. The land

lease Agreement has been signed on June 03, 2014. KGEPL has also received

suitable extension for achieving financial closure from KMC. The completion &

commissioning of plant is expected by January 01, 2016 which is 08 months

from the Start of Construction.


The Municipal Corporation that is KEM will provide 4 Hectare of land to

KGEPL as per RFP document.

SHEL will be the main EPC contractor to implement the project on turnkey

basis as proposed by KGEPL.

The total cost of the Project is estimated at Rs. 2482.69Lacs. The Project is

proposed to be funded in a Debt to Equity ratio of 65:35.Total Owners

Contribution of Rs. 868.94Lacs will be contributed by KGEPL. The debt of Rs.

1613.75Lacs for the project would be tied up with Banks/ Financial

Institutions.

KGEPL will be having its own power generation arrangements and therefore

assured revenue generation.

Provision of machinery, utilities, and misc. assets are adequate.

The infrastructure in the form of building and sheds is adequate to support the

projected production.

KGEPL will not face any problem in sourcing the technical and non-technical

manpower.

KGEPL has to ensure that sufficient area is made available for dumping of

processed remnants.

Based on the data provided and observations during the site visit, the project

is considered to be technically feasible.


The assumptions are realistic on income side and conservative on expenditure

side. Profitability appears to be achievable and realistic.

Considering the parameters of appraisal of project such as DSCR, IRR and

payback period the given financials shows viability of the project.

After considering assumptions of the project, financials prepared on the basis

of the assumptions and analysis made of the financials, we are of the opinion

that the said proposal is financially viable.

Therefore, the proposal may be considered as technically feasible and

financially viable and may be considered as fair financial risk

Documents

TECHNO-ECONOMIC VIABILITY REPORT · techno-economic viability report on municipal solid waste to energy (wte) processing plant by reverse push reciprocating grate technology ~prepared