submitted toenvironmentclearance.nic.in/writereaddata/online/tor/0_0...itc limited pre-feasibility...

PRE-FEASIBILITY REPORT

for

Installation of Bleached Chemi Thermo Mechanical Pulp (BCTMP) Mill

in Existing Pulp and Paper Mill

September, 2014

Submitted to

ITC LIMITED PAPERBOARDS & SPECIALITY PAPERS DIVISION

UNIT: BHADRACHALAM

SPB PROJECTS AND CONSULTANCY LIMITED Chennai - India

ITC Limited Pre-Feasibility Report Paperboards & Specialty Papers Division Bleached Chemi Thermo Mechanical Pulp (BCTMP)

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Table of Contents CHAPTER # TITLE PAGE#

1 EXECUTIVE SUMMARY ..............................................................................................................3 1.1 Profile of Bleached Chemi Thermo Mechanical Pulp Plant ...................................................3 1.2 Environment Management ....................................................................................................4 1.3 Socio Economic Benefit of Project ........................................................................................5 2 INTRODUCTION TO PROJECT ..................................................................................................7 2.1 Back drop ..............................................................................................................................7 2.2 Nature of the Project .............................................................................................................8 2.3 Need for the Project and Its Importance to the Country and or Region.................................9 2.4 Employment Generation (Direct and Indirect) due to the Project ........................................10 3 PROJECT DESCRIPTION .........................................................................................................12 3.1 Project Proposals ................................................................................................................12 3.2 Salient Features of the Project ............................................................................................12 3.3 Project Location Aspects.....................................................................................................12 3.3 Project Description ..............................................................................................................16 3.4 Materials Requirement ........................................................................................................23 3.5 Resource Optimisation ........................................................................................................24 3.6 Water Availability with Source .............................................................................................24 3.7 Wastewater Treatment Plant...............................................................................................25 3.8 Power Requirement and Source .........................................................................................25 3.9 Environmental Management ...............................................................................................25 4 SITE ANALYSIS .........................................................................................................................28 4.1 Connectivity & transportation ..............................................................................................28 4.2 Land Use, Land Form and Land Ownership........................................................................28 4.3 Existing Infrastructure..........................................................................................................28 4.4 Soil Classification ................................................................................................................29 4.5 Climatic Data.......................................................................................................................29 4.6 Social Infrastructure ............................................................................................................29 5 PLANNING BRIEF......................................................................................................................31 5.1 Planning Concept................................................................................................................31 5.2 Population Projection ..........................................................................................................31 5.3 Land Use Planning..............................................................................................................31 5.4 Assessment of Infrastructure Demand (Physical, Social)....................................................31 6 PROPOSED INFRASTRUCTURE .............................................................................................32 6.1 Industrial Area (Processing Area) .......................................................................................32 6.2 Residential Area (Non Processing Area).............................................................................32 6.3 Green Cover........................................................................................................................32 6.4 Drinking Water Management...............................................................................................33 6.5 Drains and Sewerage System.............................................................................................33 6.6 Industrial Waste Management.............................................................................................33 6.7 Solid Waste Management ...................................................................................................33 6.8 Social Infrastructure ............................................................................................................34 7 REHABILITATION AND RESETTLEMENT (R.R) PLAN ............................................................39 8 PROJECT SCHEDULE AND COST ESTIMATES......................................................................40 8.1 Implementation Schedule....................................................................................................40 8.2 Project Cost.........................................................................................................................40 8.3 Environmental protection.....................................................................................................40 8.4 Economic Viability ...............................................................................................................41 9 ANALYSIS OF PROPOSALS (FINAL RECOMMENDATIONS) ..............................................42 9.1 Financial Analysis ...............................................................................................................42 9.2 Conservation foreign Exchange ..........................................................................................42 9.3 Employment ........................................................................................................................42 9.4 Development of Ancillary Industries ....................................................................................43 9.5 Corporate Social Responsibility ..........................................................................................43 Annex # 1 Input Requirement 2 Plant Layout – Part of Layout showing BCTMP and Evaporator


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1 EXECUTIVE SUMMARY

1.1 Profile of Bleached Chemi Thermo Mechanical Pulp Plant

ITC Paperboards & Speciality Papers, Division (ITC PSPD) of ITC Limited, is

operating one of its paper and board manufacturing units at village Sarapaka,

near Bhadrachalam, Khammam district, Telangana State (BCM unit). ITC

BCM unit was established in the year 1978.

With periodical expansions and Mill Development Plans the mill is at present

has approved capacity (EC from MoEF and CFO from SPCB) of paper and

paper board - 740,000 tpa, bleached wood pulp - 350,000 tpa and Co-

Generation Power Plant - 114.5 MW.

To meet the growing demand for paper and board and to be one of the

leaders in the pulp and paper industry, ITC-PSPD planned for a Mill Growth

Plan (MGP) in a land adjacent to the existing mill comprising addition of

500,000 tpa Paper and Board production and 500,000 tpa Bleached Pulp, a

new 150,000 tpa BCTMP Pulp and 190 MW Captive Co-Generation Power.

MoEF vide Letter Ref: F.No.J-11011/09/2012-IA-II (I) dated 23rd March 2012,

issued ToR for the proposed MGP.

As per guidelines and directions given in the ToR, ITC PSPD proceeded with

land acquisition formalities and EIA Studies. Base line EIA Study and Special

Studies as per ToR were carried out from March 2012 to May 2012. The

EIA/EMP Report was prepared by EIA Consultants and were ready to proceed

with Public Hearing.

The base line environmental study, Environmental Management Plan (EMP)

and draft EIA Report of the MGP project is ready for the public hearing. As

the land allotment from forest department is getting delayed, the public

hearing could not be completed before March 2014 and extension obtained till

March 2015 for conducting public hearing.

Based on the following advantages and envisaged benefits, ITC-PSPD has

proposed to install the BCTMP plant, at the earliest, in the existing facility to


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avoid any adverse business impacts from the prolonged time in the MGP

project implementation due to land acquisition process.

The proposed project will save valuable foreign exchange to the country to the

tune of Rs. 250 crores per annum and also possible increase in foreign

exchange earning by exporting the value added products.

The existing mill is using around 90,000 BD tpa of imported Bleached

Chemi Thermo Mechanical Pulp (BCTMP) for the middle layer of

boards.

Due to increased importing costs of BCTMP, the overall profitability of

the plant is affected and hence manufacture of BCTMP in-house is

essential at this stage.

The proposed BCTMP plant will be a zero liquid discharge plant and

the entire waste liquor generated form BCTMP will be processed in the

existing chemical recovery to recover caustic, simultaneously

generating energy. Thereby the wastewater load on the existing ETP

will be unchanged

The additional steam and power required for the BCTMP plant will be

sourced from the existing 114.5 MW co-generation plant, hence no

additional utilities and infrastructure would be installed. The existing co-

generation plant was accorded necessary Environmental Clearance

(EC) and also Consent To Operate (CTO) by the state pollution control

board.

The total water demand in the existing facility after implementation of

the BCTMP facility will be maintained within the consented level of

79000m3/day. Hence no additional fresh water drawl permission would

required.

1.2 Environment Management

Air Environment

No air pollutant from the BCTMP plant is envisaged. The steam requirement

for BCTMP plant will be met from the existing boilers of overall approved


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capacity of 520 tph and hence there will not be any additional emission due to

boiler.

Since the BCTMP plant is based on the oxidised white liquor based, and

hence the non-condensate gas generation is negligible from environmental

angle.

Wastewater generation

Wastewater generated from the BCTMP facility will be directly reused in the

existing mill and hence the overall pollution load on the existing ETP will

remain unchanged from the current baseline levels.

Solid Waste Generation and Disposal

The solid waste generated from BCTMP plant are not hazardous in nature.

The solid waste is generated from chipper area consisting mainly wood dust

and small quantity of wet sand.

The chipper dust of 5 tpd will be generated from the chipper house will be

used as a fuel in biomass boiler.

Less than 0.5 m3/day of wet sand is generated from wood chip washing unit is

disposed of as land filler within the factory area.

1.3 Socio Economic Benefit of Project

Some of the specific benefits are presented below:

Currently ITC PSPD is importing 90,000 tons of BCTMP required for its paper production and in the event of commissioning of the above project, foreign exchange to the tune of Rs. 250 Crore will be saved.

The project will create direct employment to about 130 persons. In addition it

would generate indirect employment to about 250 persons in the industries

and service organizations and material handling, etc., which will be supported

by the operations of the mill.

BCTMP requires about 1.7 lakhs tpa of wood as raw material for the

production of BCTMP out of which about 70,000 tpa will be sourced from farm


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forestry. To produce the wood about 5000 ha to be developed through farm

forestry. Thus project will create livelihood for about 15,000 families in farm

forestry, felling and debarking of wood and for the transportation of wood to

the plant.

The implementation of the project will provide stimulation for added growth to

other industries.

The financial analysis of proposal is as below

Parameter Unit Value

IRR Pretax (Expected) % 20

Payback Y 4


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2 INTRODUCTION TO PROJECT

2.1 Back drop

ITC Paperboards & Speciality Papers, Division (ITC PSPD) of ITC Limited, is

operating one of its paper and board manufacturing units at village Sarapaka,

near Bhadrachalam, Khammam district, Telangana State (BCM unit). ITC

BCM unit was established in the year 1978.

With periodical expansions and Mill Development Plans the mill is at present

has approved capacity (EC from MoEF and CFO from SPCB) of paper and

paper board - 740,000 tpa, bleached wood pulp - 350,000 tpa and Co-

Generation Power Plant - 114.5 MW.

ITC BCM unit produces wide range of printing & writing papers and

coated/uncoated paperboards.

ITC BCM has employed cleaner technology by implementing the state-of-the-

art technologies in pulping and recovery operations, commissioning the

Elemental Chlorine Free (ECF) wood pulp mill for the first time in the country.

ITC BCM unit is first in the country to install Ozone generation plant and now

producing bleached wood pulp with a combination of Ozone and Chlorine

Dioxide.

From the inception, ITC-PSPD has always been a responsible player in the

paper industry by

Adopting environment – friendly processes as far as practicable

Being quality conscious – in products, processes service and people

Continuously enhancing the value for all stake holders and

Upholding societal values and expectations

The unit has obtained ISO 9001, ISO 14001 and OHSAS 18001 , BRC-IoP

and FSC-FM certifications.


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To meet the growing demand for paper and board and to be one of the

leaders in the pulp and paper industry, ITC-PSPD planned for a Mill Growth

Plan (MGP) in a land adjacent to the existing mill comprising addition of

500,000 tpa Paper and Board production and 500,000 tpa Bleached Pulp, a

new 150,000 tpa BCTMP Pulp and 190 MW Captive Co-Generation Power.

MoEF vide Letter Ref: F.No.J-11011/09/2012-IA-II (I) dated 23rd March 2012,

issued ToR for the proposed MGP.

As per guidelines and directions given in the ToR, ITC-PSPD proceeded with

land acquisition formalities and EIA Studies. Base line EIA Study and Special

Studies as per ToR were carried out from March 2012 to May 2012. The

EIA/EMP Report was prepared by EIA Consultants and were ready to proceed

with Public Hearing.

However, ITC PSPD could not proceed with Public Hearing as the land was

not allotted to us for establishing the project. The installation of BCTMP in the

existing facility is also getting delay significantly. Hence, installation of

BCTMP in the existing facility has become essential for an overall profitability

and flexibility of the existing operation.

2.2 Nature of the Project

ITC-PSPD is the largest integrated paperboards manufacturer in India. In

addition to manufacturing world-class, on-line coated boards, the mill also

produces quality grades of printing and writing papers and posters.

The mill commissioned state-of-art fibre lines with a state of art cooking plant

and chemical recovery systems based on the Best Available Technology

(BAT).

The mill is using around 90,000 tpa of imported Bleached Chemi Thermo

Mechanical Pulp (BCTMP) for the middle layer in some of the coated boards.

BCTMP plant is being power intensive and with increase in power cost world

wide, BCTMP cost is going up year over year impacting the cost of production

of the coated boards.


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With a view to reduce the dependency on import, ITC-PSPD proposes to

install a new BCTMP plant inside the existing mill premises at Sarapaka

Bhadrachalam,

The proposed BCTMP project comprising installation of

New bleached Chemi Thermo Mechanical Pulp (BCTMP) mill –

1,00,000 AD tpa

White liquor oxidation plant with oxygen generation plant

Evaporation plant of waste liquor generated in BCTMP.

2.3 Need for the Project and Its Importance to the Country and or Region

With steady increase in input costs and a continuous competition from the new

units with better quality products apart from the threat of dumping from

overseas manufacturers, the mill has to find ways and means to meet these

challenges and for its continued economically viable operation for sustenance.

ITC-PSPD earlier envisaged the BCTMP plant in the MGP project and

obtained ToR for MGP including the BCTMP plant and conducted

Environmental Impact Assessment including BCTMP Plant. The baseline

environmental studies, Environmental Management Plan (EMP) and draft EIA

Report for MGP is ready for the public hearing. As the land allotment from

forest department is getting delayed, the public hearing could not be

completed before March 2014 and extension has been obtained till March

2015.

Based on the following advantages and envisaged benefits, ITC-PSPD has

proposed to install the BCTMP plant, at the earliest, in the existing facility to

avoid any adverse business impacts from the prolonged time in the MGP

project implementation due to land acquisition process.

The proposed project will save valuable foreign exchange to the country to the

tune of Rs. 250 crores per annum and also possible increase in foreign

exchange earning by exporting the value added products.


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The existing mill is using around 90,000 BD tpa of imported Bleached

Chemi Thermo Mechanical Pulp (BCTMP) for the middle layer of

boards.

Due to increased importing costs of BCTMP, the overall profitability of

the plant is affected and hence manufacture of BCTMP in-house is

essential at this stage.

The proposed BCTMP plant will be a zero liquid discharge plant and

the entire waste liquor generated form BCTMP will be processed in the

existing chemical recovery to recover caustic, simultaneously

generating energy. Thereby the wastewater load on the existing ETP

will be unchanged

The additional steam and power required for the BCTMP plant will be

sourced from the existing 114.5 MW co-generation plant, hence no

additional utilities and infrastructure would be installed. The existing co-

generation plant was accorded necessary Environmental Clearance

(EC) and also Consent To Operate (CTO) by the state pollution control

board.

The total water demand in the existing facility after implementation of

the BCTMP facility will be maintained within the consented level of

79000m3/day. Hence no additional fresh water drawl permission would

required.

Further, as specified by the charter on Corporate Responsibility for

Environmental Protection (CREP), it is necessary for the mill to comply with

the latest environmental guidelines.

2.4 Employment Generation (Direct and Indirect) due to the Project

The project will create additional direct employments to around 100 people.

The project will provide scope for indirect employment of about 250 people

during construction stage and about 200 people during operation in the areas

of material handling, transport and ancillary units.


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forestry. To produce the wood about 5000 ha to be developed through farm

forestry. Thus project will create livelihood for about 15,000 families in farm

forestry, felling and debarking of wood and for the transportation of wood to

the plant.


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3 PROJECT DESCRIPTION

3.1 Project Proposals

The proposals covered under the BCTMP project are as below. .

BCTMP plant of 1,00,000 AD tpa capacity

BCTMP waste liquor evaporate plant - 120 m3/hr water evaporation

White liquor oxidation plant– 20 m3/hr with oxygen generation plant

Augmentation of wood handling and chipping plant

New chip washing plant

3.2 Salient Features of the Project

State-of-the-art latest technology to achieve a brightness of 70-80%

First BCTMP mill in the country

Import substitution

Waste liquor conversion effectively to energy/steam from the liquor in the

recovery boiler

White liquor oxidation to recycle the caustic, thus reducing the fresh

caustic consumption and bleaching chemicals

Zero liquid discharge/small spillage quantity generated in chip washing will

be used for miscellaneous purposes in the mill

3.3 Project Location Aspects

ITC Limited-PSPD, Unit: Bhadrachalam is located at Sarapaka village, Near

Bhadrachalam. Khammam district, Telangana Pradesh, about 5 km from

Bhadrachalam town in south central part of India.

BCTMP project is proposed to be located with in the existing mill premises.


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The site is located at the intersection of longitude 80o52'05" E and latitude

17o41’19” N and falls under Survey of India Topo sheet No. 65C/13 and

65C/14.

The site is about 100 km (aerial) from Khammam, the district headquarters

and it is on the State Highway No.9 and nearest airport is at Hyderabad.


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3.3.1 Location Map


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3.3.2 Study Area

Google Map Showing Existing Facility

STUDY AREA – 10 KM AROUND THE PROPOSED PROJECT


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3.4 Project Description

3.4.1 Bleaching Chemical Thermo Mechanical Pulping Line (BCTMP)

3.4.1.1 BCTMP Plant

BCTMP has higher bulk, higher pulp yield, higher opacity but has lower

strength. The brightness of BCTMP pulp required is 70-80% and with bulk

around ± 3.5 cm3/g. The BCTMP pulp freeness is around 400 ± 50 ml CSF.

Along with the new BCTMP plant, a new white liquor oxidation plant, new

oxygen generation plant, new waste liquor evaporation plant and chipper

house will be installed.

The process steps involved in BCTMP pulping are as follows:

Wood chipping & chip washing

Impregnation

HC refining

Bleaching

LC refining

Screening & washing

Thickening & storage

3.4.1.2 BCTMP Plant Project Technical Details

Key machines:

Plug screw

High consistency RGP - refiner

Low consistency refiner (optifiner)

Optic screen

Screw press


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Flow diagram:

Chip washing

Chips supplied to the mill can be contaminated with foreign materials such as

pieces of metal, stones and stand. The chip washing system removes these

materials as they will damage the refiner plates.

Chips are fed to the scrap separator where chips and hot wash water are

mixed. Heavy materials are settled at the bottom of the scrap separator and

discharged to a container.

The washed chips with the wash water drops to a chip sump from where the

chips are pumped to a screw drainer with perforated screens. The dewatered

chips are fed to a presteaming bin. Dirty filtrate from the screw drainer is

cleaned in bow screens, which have fine slotted screen plates. Scrap, sand

etc are separated. The cleaned water then goes back to processing and

enters white water tank, while the reject goes to the scrap container.


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The wash water is further cleaned in cyclones, to separate sand and other

abrasive materials. The cleaned wash water is recycled back to the scrap

separator. White water is used as make up water to the tank.

Impregnation system ( Two (2) stages)

The impregnation system comprises of four steps.

Step one : Preheating

Clean chips from the screw drainer are fed to an atmospheric presteaming bin

to soften the chips and to replace all the air. A vibrator inside the surge bin

feeds the chips to a plug screw feeder.

Step two : Compression and washing

The plug screw feeder compresses the chips to remove pitch, water and

remaining air. Then the highly compressed chips are discharged into the

impregnator via a blow back piston. The pressate is recycled back to the chip

wash.

Step three: Impregnation with chemicals

The blow back piston breaks up the compressed chip before it enters the

impregnator. The fully impregnated are discharged onto a screw conveyor.

The screw conveys the chips to a retention bin.

Step four: Reaction

The retention bin provides sufficient reaction time for the impregnated chips.

Steam is added to obtain optimum reaction temperature. The chips are

distributed to the discharging screw conveyor, which feeds a levelling bin. This

bin ensures an even feed of the chips to the refiner. The chips are

compressed by the tapered screw to press out pitch and COD and to create a

steam tight plug to seal against the back flowing steam generated in the

refiner. The plug screw feeds the chips to the refiner via an infeed screw.

Refining Process

Pressurised high consistency refining offers defibration of chips, with good

pulp quality.


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The high speed of the infeed screw feeds the chips into the breaker bar

section of the refiner segment, which homogenizes the chips. Then the chips

enter the refining stage for final defibration at high consistency. The pulp

discharges from the refining zone into the refiner housing and is blown by the

generated steam, to the cyclone. The fibres are discharge from the cyclone via

a plug screw in the bottom of the cyclone. In the cyclone the steam generated

in the refiner is separated from the fibres.

Bleaching

The pulp is discharged from the cyclone via a plug screw. Flash steam is

vented and the pulp falls into chemical mixing screw. Where the pulp is mixed

with bleaching chemicals to get the desired pulp brightness. The mixer screw

discharges the pulp at high consistency to the top of the bleach tower. The

bleach tower is designed for sufficient bleaching time.

First stage washing

The bleached pulp is pumped with the MC pump to a screw press for effective

washing. The washed pulp is again mixed with bleach chemicals in a mixing

screw conveyer and falls into a second stage bleach tower. This bleach tower

offers sufficient bleaching lime to get a required brightness.

From the second bleach tower, it is pumped by a MC pump to a screw press

for effective washing. This washing is stage No. 2.

The washed pulp is diluted with white water from the disc filter tank and then

collected in a latency chest. A Flow Jet agitator agitates the pulp in the chest

to straighten the fibres that have acquired curl in the refining process. The

pressate is partly recycled back to the process and partly discharged for

further treatment via a fibre recovery filter. The recovered fibres are sent

forward.

Second stage refining

The bleached pulp is then pumped to a low consistency refiner for further

refining. The refined pulp is sent for screening. The second stage refining is

low consistency refining.


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Main line screening

The pulp is screened at high consistency using screen baskets with narrow

slots. The reject, is sent for further treatment in the reject refiner. The

accepted fibres from the screens thickened in the disc filter.

Reject refining, screening and cleaning

The pulp from the unrefined reject chest is pumped to the low consistency

refiner.

The refined pulp is screened. The screen accepts is sent for thickening on the

disc filter while the reject is diluted and sent to cleaners.

The cleaner accept is sent back to the latency chest while the reject is sent to

waste liquor treatment.

Thickening and pulp storage

Accept pulps from the main line and reject screens are led to a disc filter for

washing and thickening prior to storage. Cloudy filtrate high in fibre content

and clear filtrate low in fibre content are led to separate chambers in the white

water chest. The pulp is discharged from the disc filter through to a standpipe

to the medium consistency pump. The pulp is then pumped to a screw press

(3) from washing. After the screw press, it is falling to a stand pipe and from

there it sent to one more press (4) for further washing. After this pulp can be

taken to a storage tower.

3.4.2 Process Description for White Liquor Oxidation Plant

Caustic usage, to maintain pH in oxygen delignification, increases sodium

build up in the recovery cycle, leading to imbalance of sodium and sulphur.

Oxidised white liquor usage helps in maintaining the chemical balance of

the mill.

Sulphide in white liquor will adversely affect the brightness and viscosity of

pulp if white liquor is used as such for oxygen delignification. Hence, the

sodium sulphide in white liquor is to be oxidised.


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The conversion of sodium sulphide to sodium thiosulphate is expressed as:

2Na2S + 2O2 + H2O → Na2S2O3 + 2NaOH

Molecular oxygen based system

The molecular oxygen based system is operated under pressure and at a

higher temperature than the air system. Oxygen and white liquor, internally

generated are added in a reactor. During cold start-up, a small quantity of

steam is added through a static mixer ahead of the reactor. The steam

injection is not required to be added during normal operation of the plant. The

reactor is followed by a phase separator to allow for degassing of any

entrained vapours and gases. The un-oxidised white liquor and fresh oxygen

are be mixed in a venturi mixer and then injected into the reactor. Oxygen

reacts with the white liquor under a solution pressure of about 10.5 kg/cm² (g).

Most of the reaction occurs in the white liquor reactor. Less than 20% excess

oxygen is required to complete the oxidation of the sodium sulphide to

thiosulphate. The phase separator is a pressure vessel with a minimum

surface to allow the release of any entrained gases. The exothermic reaction

typically increases the temperature of the white liquor by 55°C to 80°C.

The oxidised white liquor is used as a replacement for caustic.

A block flow diagram (BFD) of molecular oxygen based system is given below:


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3.4.3 New Multiple Effect Evaporator

New multiple effect evaporator includes

7 vertical tubular falling film evaporators (7 effects)

primary condenser and secondary condenser

pump tanks for primary condensate, process condensate, foul condensate,

concentrate and wash liquid return

vacuum pump

The waste liquor feed enters into multi effect evaporator. The evaporation

takes place in vertical tubular falling film evaporators connected in series. Inlet

concentration of the waste liquor is 1.5–1.6 % and evaporator outlet

concentration will be 40%.

The secondary condensate to be returned to the pulping process is collected

from the evaporator effects and from the primary condenser.

The foul condensate from the evaporation plant is sent to the existing

condensate stripper and is pumped to the recausticising plant .There is no

liquid effluent from the evaporation plant which has to be sent to the waste

water treatment plant.

The alkali used in the BCTMP is oxidised white liquor which contains no

sulphur compounds there is no emission of sulphurous gases from the plant.

Waste liquor Solids handling

The waste liquor received from the plant contains 48 tpd dry solids which is

mixed with the product liquor from the chemical pulping liquor and processed

in the existing chemical recovery boilers.

As the quantity of the waste liquor solids from BCTMP is small when

compared to the solids from chemical pulping there is no considerable

increase in the production of green liquor . The recovery boilers have

adequate capacity to handle the additional solids.


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Additional green and white liquor requirement

The additional white liquor required for the white liquor oxidation plant can be

produced from the existing recausticising plant. The loss of alkali used in the

BCTMP will be made up in the chemical recovery plant. The recausticising

plant also can handle this liquor and hence there is no need of any additional

equipment.

3.5 Materials Requirement

3.5.1 Raw Materials and Chemicals

The raw materials required for BCTMP are tropical mixed pulpable hard wood.

In order to maintain quality of BCTMP a mix of local wood and wood chips will

be imported. The average annual requirement of the raw materials and

chemicals is given below:

TABLE 1 RAW MATERIALS AND CHEMICALS REQUIREMENT

tpa

Raw material Annual Qty

Mixed hardwood 64,000

Wood chip import 80,000

TABLE 2 CHEMICALS REQUIREMENT

Raw Material Annual Qty (t)

Hydrogen peroxide 4340 Caustic soda 2200 Ferro bright 220 Diethylene Triamine Penta acetic acid (DTPA) 400

The input requirement working sheet is enclosed as Annex 1.

3.5.2 Sources of Material

3.5.2.1 Raw material

ITC-PSPD has developed farm forestry in and around Bhadrachalam covering

an area of about 120,000 hectares, which yield about 20 lakh t of wood every

year. The present requirement is about 8 lakh t of wood and the additional


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requirement of 0.64 lakh t. Hence the raw material procurement for the project

will not pose any problem.

In addition to local wood, it is proposed to import wood chips of about 60% of

the requirement from Australia/South Africa/Thailand.

3.5.2.2 Chemicals

All the chemicals are locally available and shall be procured from local market

3.5.2.3 Fuel

The overall steam requirement for the project will be 15 tph and the power

requirement will be 15 MW. It is proposed to draw the steam from the existing

captive power boilers of overall capacity 520 tph.

About 80,000 tpa indigenous coal will be required for supplying the additional

steam and power from the existing CPP to BCTMP plant and evaporation

plant. After the project the total coal requirement for the BCM unit will be

within the consented quantity of 8 lakh tpa.

3.6 Resource Optimisation

The following recycling or resource optimization are envisaged in BCTMP

S.No Description Recycling / Optimisation

1 Additional Black liquor solids from BCTMP plant

The waste liquor, containing black liquor solids, is evaporated in the evaporator and will be fired in the existing recovery boilers to generate steam and power

2 Water recycling Condensate from evaporator 3 Bark and Dust from chipper Fired in biomass boiler

3.7 Water Availability with Source

The fresh water requirement will be 2000 m3/day for BCTMP plant. The

present water requirement as per earlier consent is 79,000 m3/day, ITC-PSPD

has implemented water conservation measures and with the requirement of

fresh water for BCTMP, the overall consent for fresh water drawal of 79,000

m3/day will be maintained.


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3.8 Wastewater Treatment Plant

The BCTMP plant proposed is based on the Best Available Technology (BAT)

from METSO/ANDRITZ with zero discharge concepts. Hence, there will not

any discharge from the BCTMP plant into effluent treatment plant.

The waste liquor from BCTMP plant containing black liquor solids is

evaporated in the new evaporator and the water from evaporation plant is

recycled and the black liquor solids of around 50 tpd will be fired in the existing

recovery boiler generating about 1.5 MW of power.

3.9 Power Requirement and Source

The mill at present is self-reliant on the power front, with its own captive power

generation. However, to keep the system in operation, the mill has retained

State Grid supply with minimum drawal.

The expansion requires additionally about 15 MW of power and it is proposed

to draw the additional power partly (10 MW) from the existing captive power

plant of capacity 114.5 MW and the balance is to be drawn from ITC-PSPD’s

wind power generation units maintained and operated by ITC. It is not

envisaged to install additional power plant for the above.

3.10 Environmental Management

3.10.1 Construction Phase

The construction activities of new installation will not necessitate any

displacement of people as the construction will be carried out in the forest

land. This phase does not involve major changes in the terrain.

3.10.2 Air Environment

No air pollutant from the BCTMP plant is envisaged. The steam requirement

for BCTMP plant will be met from the existing boilers of overall approved

capacity of 520 tph and hence there will not be any additional emission due to

boiler.


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Since the BCTMP plant is based on the oxidised white liquor usage, the non-

condensable gas generation is negligible from environmental angle.

3.10.3 Wastewater generation and Disposal

Wastewater generated from the proposed BCTMP facility will be reused in the

existing facility and hence the overall pollution load on the ETP will remain

unchanged.

3.10.4 Solid Waste Generation and Disposal

The solid waste generated from BCTMP plant are not hazardous in nature.

The solid waste is generated from chipper area consisting mainly wood dust

and small quantity of wet sand.

The chipper dust of 5 tpd will be generated from the chipper house will be

used as a fuel in biomass boiler.

Less than 0.5 m3/day of wet sand is generated from wood chip washing unit is

disposed of as land filler within the factory area.

3.10.5 Noise Environment

The noise level of the all the equipment will be kept within the CPCB

standard in and around the work zone.

Socio – Economics:

Land proposed for the project is existing land. There will not be any

resettlement and rehabilitation. Thus, there will not be any adverse socio

economic implications.

The economic status of the area is likely to improve, as there will be direct

/indirect employment generation during construction and operational

phase.


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Risk Assessment & DMP

No major hazards with potential for any emergency situation exist in the

process plants. On site and off site emergency measures shall mitigate the

effect on any risk.


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4 SITE ANALYSIS

4.1 Connectivity & transportation

The mill is having a good connectivity and transportation facilities as about

2.5 million tpa of material is regularly moved in and out of the existing mill

activities.

Transportation for this project involves the following:

Additional raw materials of around 1.50 lakh tpa

Coal of about 0.8 lakh tpa

The existing infrastructure is capable of taking care of the above increased

load and if required the facilities inside the mill will be strengthened.

4.2 Land Use, Land Form and Land Ownership

New project facilities are planned to be located within the existing mill

premises.

Mill layout, showing the proposed locations of the new facilities, is enclosed as

Annex 2.

4.3 Existing Infrastructure

The existing infrastructure of proposed site is as below

Water From River Godavari, 3.1 km from the site and perennial

water source

Coal From near by Singereni Coal fields (about 150 km away)

Highways State Highway (SH-9) connecting Bhadrachalam and

Kothagudem is adjacent to the site

Electricity EB Substation is near by.

The project is coming up within the existing site. All managerial and other

infrastructures required for the implementation of project is available. In


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addition to the above skilled labour is available in the existing factory to

oversee implementation and commissioning of the project.

4.4 Soil Classification

The predominant soil classification of the mill site is sandy loam.

4.5 Climatic Data

The site specific climatic data are as below

Maximum Temperature 44.5oC

Minimum Temperature 20.3oC

Average annual rainfall 145,4 mm

Predominant Wind Direction SE, SSE

Relative humidity 29.7% - 77.6%

4.6 Social Infrastructure

Considerable population (about half of the total population) in the 10 km radial

study area belongs to socially weaker sections with majority under scheduled

tribes.

The study area experiences a moderate literacy rate of 51.5% (2001). The

distribution of literate and literacy rate in the study area is given below

The occupational structure of residents in the study area is studied with

reference to main workers, marginal workers and non-workers. As per 2001

census records altogether the main workers works out to be 36.29% of the

total population. The marginal workers and non-workers constitute to 8.53%

and 55.18% of the total population respectively. The distribution of workers by

occupation indicates that the non-workers are the predominant population.

4.6.1 Places of Tourist and Archaeological Importance

Bhadrachalam an important town of the district is located on the banks of the

River Godavari, at a distance of 5.0 km towards SE of the proposed expansion

site. The town is well known for the temple of Lord Sri Rama. It is considered

holy spot since Lord Rama is supposed to have lived here for some time. The


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temple is said to have been constructed on the very spot where Rama crossed

Godavari on his expedition to Lanka (Ceylon).

Ravigudem village situated on the right bank of river Godavari is noted for the

temple of Kedareswara and Bhuvaneswara, the lingams (Phalic emblems) of

which are believed to be consecrated by Sage Agastya. This is a noted pilgrim

center and attracts a gathering of about one-lakh devotees during

Mahasivaratri festival, which falls in the February- March. This is located at a

distance of about 9.3 km towards SE from the proposed expansion site.

Yanambailu village lies at a distance of 11 km from Palwancha. The

Kinnersani project at this place is designed mainly to supply water to

Kothagudem Thermal Station and to irrigate about 4,047 ha of land. The

natural environments in and around the Kinnersani project (which is a

declared as wild life sanctuary also) present a beautiful scenery to attract

tourists.


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5 PLANNING BRIEF

5.1 Planning Concept

BCTMP is expansion project to manufacture BCTMP and to be housed in the

existing plant. BCTMP will be suitably well planned with all required

infrastructure for the proposed installation.

5.2 Population Projection

The proposed site is within the existing plant area and the population is

around 340000 person inhabited in 2145 km2 of neighbouring area i.e 25 km

radial distance from the centre of the plant area.

5.3 Land Use Planning

The land required for the BCTMP mill with all its auxiliary units have been

identified with in the plant area of the existing mill. Total of about 2.2 acres of

land is required for the above expansion and is clearly marked in the enclosed

layout. The individual areas required for the different plant area is given below.

TABLE 3

LAND REQUIREMENT

S No Description Area in sqm 1 BCTMP including WLO 18002 chip yard and chipper 48003 Evaporator 12004 Cooling tower 6505 Electrical 350 Total 8800

5.4 Assessment of Infrastructure Demand (Physical, Social)

Infrastructure /amenities/facilities required for the proposed expansion project

will be assessed based on the need based survey in the surrounding area.

The infrastructure development will be taken-up under CSR activity.


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6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area)

This is being expansion project; most of the infrastructure like water in-take

system, power in take, roads, railway siding for raw material/product

transportation is available. The same will be augmented according to

requirement.

6.2 Residential Area (Non Processing Area)

This being a existing plant, the township with required infrastructure such as

educational institution, hospital, roads, shops, drain and sewerage system,

etc., is already available.

6.3 Green Cover

The mill has grown plantations around the mill area and is a pioneer in clonal

plantations.

The mill encourages farm forestry and social forestry to meet the raw material

requirements.

With a view to mitigate the adverse environmental effect on surroundings and

to provide an environmental cover from emissions, green belts are developed

in and around the mill.

Extensive plantation has been done under green cover development for the

existing plant. Green cover has been developed and well maintained along the

internal roads and mill area. The mill has made elaborate arrangement in

developing green belt inside the mill.

The species proposed will have broad leaves, trees will be selected based on

the type of pollutants, then intensity, easy availability and suitability to the local

climate.


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The species will be selected based on:

Wide adaptability to eco-physiological conditions

Rapid growth

Capacity to endure water and climate extremes

Pleasing appearance and providing shade.

6.4 Drinking Water Management

Drinking water will be sourced from river Godavari. Water treatment will be

installed at factory to the intake water and distributed to various sections of the

plant and residential area.

6.5 Drains and Sewerage System

Drains sewerage system will be designed according to needs of plant and

residential area and shall be properly connected and linked.

6.6 Industrial Waste Management

6.6.1 Air Pollution Management

No additional dust will be generated from the project facilities.

6.6.2 Water Pollution Management

Wastewater from BCTMP will be reused in the existing facility, hence no

impact on the existing ETP.

6.7 Solid Waste Management

The only solid waste expected from the proposed expansion project is wood

dust from chipper which is fired in the bio-mass boiler. In addition to wood

dust about 0.5 m3/day of wet sand is generated from wood chip washing unit,

which is used as a land fill with in the plant area.


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6.8 Social Infrastructure

ITC - PSPD is committed to corporate social responsibility (CSR) in helping

the inhabitants of the surrounding villages by taking part in

Social farm forestry

Watershed development

Agricultural productivity

Livestock development

Primary education

Woman empowerment

E-choupal for farmers

This has paved the way for establishing a harmonious relationship in the area.

Under social farm forestry, ITC – PSPD has promoted farm forestry in

1,63,000 hectares till now, which generated employment generation is about

70 million person-days of employment opportunities .

Watershed development carried out covering about 1,49,000 hectares with

4,974 harvesting structure, benefiting about 1,27,394(No.) of farmers.

Agricultural productivity is increased training the farmers and about 473

irrigation wells and 740 sprinkler units were installed. About 5800

demonstration plots were created to educate the farmers. Also 13,800

vermicompost & NADEP units were installed for the benefit of farmers to

manufacture organic manure.

ITC-PSPD has created 261 cattle development centres for the benefit of about

187,000 farmers.

In the field of woman empowerment, ITC has created 8,800 micro credit

groups of woman to benefit 39,000 woman entrepreneurs.


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ITC–PSPD has taken up about 700 government school and extended

infrastructure support and also opened 2,500 supplementary learning centres

to provide coaching in the evening.

ITC–PSPD has set up E-choupal at various places and trained the farmers to

browse the internet for e-trading to avoid middlemen and to access various

information including commodity price to enable them to get more prices for

their products.


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Farm Forestry

Inter-cropping on plantations provides Site-specific clones help tribals overcome assured income to farmers during the alkaline and saline soil problems to gestation period of these plantations convert wastelands into lush plantations

Mist chamber at ITC's pioneering R&D Centre ITC has created an attractive income in Bhadrachalam, Andhra Pradesh. productivity opportunity for farmers to grow high- The of Bhadrachalam clones is 9 times higher than yielding, disease-resistant clonal saplings 6 to that of seedling plantations into plantations

The success of older plantations, seen in the ITC has institutionalised its intervention background, is spawning a new generation by creating village-level natural resource of plantations, seen in the foreground management committees comprising local farmers.


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Watershed Management

Agricultural productivity Woman empowerment

Livestock Development


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CSR is a continuing activity for all progressive organisations and ITC-PSPD

understands and appreciates that as the company progress, expectation

levels of neighbourhood population increases.

ITC has received many awards and some of the awards in the corporate

responsibility and environmental excellence are as under;

ITC won the Asian CSR Award for Environmental Excellence, given by the

Asian Institute of Management (2007).

ITC Limited has won the top honours at the TERI Corporate Award for Social

Responsibility 2008 in recognition of its exemplary initiatives in implementing

integrated watershed development programmes across 7 states, providing

precious water resources for agriculture, rural communities and livestock.

ITC was conferred the Corporate Social Responsibility Crown Award for Water

Practices from UNESCO and Water Digest (2008).

ITC Limited was presented the FICCI Award for Outstanding Achievement in

Rural and Community Development by the Finance Minister, Shri Pranab

Mukherjee (2010).

ITC became the first Indian Company to gain Membership with WWF-GFTN

for Responsible Forestry (2010).

ITC- PSPD will continue to work for the social infrastructure development and

requirements.


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7 REHABILITATION AND RESETTLEMENT (R.R) PLAN

The land proposed for BCTMP expansion is within the existing plant area.

Hence the project will not involve rehabilitation and resettlement.


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8 PROJECT SCHEDULE AND COST ESTIMATES

8.1 Implementation Schedule

The major activities are highlighted below and the completion time indicated

are from the “zero date” which is the date of Environment Clearance(EC)

Start date “Zero Date”

Ordering of long delivery plant and equipment 2nd to 3rd month

Commencement of Civil Construction 8th month

Delivery of plant equipment 11th to 18th month

Erection of equipment 12th to 19th month

Commencement of start-up trial & commissioning 20th month

Commencement of commercial production 21st month

8.2 Project Cost

Total investment for the installation of BCTMP is Rs 450 Crores as per broad

break up given below:

TABLE 4

PROJECT COST

S. No

Description Cost in Crores

1 Civil Works 502 Plant & Machinery Cost (including erection and engineering) 400 Total 450

8.3 Environmental protection

As environmental protection will be monitored and implemented by a

centralized environmental management cell. The fiscal estimates have been

arrived for the proposed BCTMP are as below.

About Rs 50 Crores is allocated towards pollution control equipment and

implementation of environmental pollution control measures.


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The details of investment for procuring the equipment for effluent control and

monitoring of pollution are as below.

Section Rs. Crore BCTMP wastewater evaporation plant 35While Liquor Oxidation 7Chip dust extraction system and firing in boiler 1Wastewater treatment and recycle within BCTMP plant 7Total 50

8.4 Economic Viability

The economic viability of proposed PEP is as below:

Description Unit Value Production of BCTMP tpa 100,000Cost of Imported BCTMP Rs/ ton 39,000Total inflow Rs Cr 390Total expenditure Rs Cr 280 Net inflow Rs Cr 110Investment Rs Cr 450ROI % 24Expected IRR % 20Payback Yrs Months 4 y


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9 ANALYSIS OF PROPOSALS (FINAL RECOMMENDATIONS)

Some of the specific benefits are presented below:

9.1 Financial Analysis

The financial analysis of proposal is as below

Parameter Unit Value

IRR Pretax (Expected) % 20

Payback Y 4

9.2 Conservation of Foreign Exchange

Currently ITC PSPD is importing 90,000 tons of BCTMP required for its board

production and in the event of commissioning of the above project, Foreign

Exchange to the tune of Rs. 250 Crore will be saved.

9.3 Employment

The project will create direct employment to about 130 persons. In addition it

would generate indirect employment to about 250 persons in the industries

and service organizations and material handling, etc., which will be supported

by the operations of the mill.



forestry. To produce this additional wood about 5000 ha to be developed

through farm forestry. Thus project will create livelihood for about 15,000

families in farm forestry, felling and debarking of wood and for the

transportation of wood to the plant.

Thus the project creates additional livelihood to farmers, casual workers and

transporters in the near by region.


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9.4 Development of Ancillary Industries

The implementation of the project will provide stimulation for added growth to

other industries.

9.5 Corporate Social Responsibility

CSR is a continuing activity for all progressive organisations and ITC-PSPD

understands and appreciates that as the company progress, expectation

levels of neighbourhood population increases and will enhance the corporate

spending in the neighbour hood area to uplift the community.

In view of the foregoing, it is obvious that the potential contribution from this

project to the State of Telangana and National economy would be significant,

to say the least.

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