INTRODUCTION

Piccadily Agro Industries Limited(PAIL),a public limited

company incorporated on March 25, 1994 is setting up a new plant

for manufacturing of crystal sugar and super refined white sugar

with licenced capacity of 2500 TCD at village-Bhadson, tehsil

Indri in district Karnal(Haryana). Mill will start its trial

operation at fag end of crushing season 1995-96. Expansion of

crushing capacity to 3500 TCD will be effected in next season

1996-97 season. Final expansion to 5000 TCD will be effected in

near future. At 3500 TCD it is proposed to co-generate surplus

power of 4.94 MW. At 5000 TCD surplus co-generated power for

export will be about 11.2 MW. PAIL is in joint sector with

Haryana State Industrial Development Corporation Ltd(HSIDC) as

co-promoter.

Group of companies under Piccadily umbrella are:

Piccadily Sugar & Allied Industries Limited(PSAIL)

Piccadily Hotels Private Limited(PHPL)

Piccadily Holiday Resorts Limited (PHRL)

Soon-N-Sure Holdings Private limited(SNSHPL)

Promoters are also having large number of hotels restaurants

and bars and other business. These hotels are running into

profits for last several years. Promoters are also having

interest in trading activities. Promoters hold about 60 acres of

agricultural land in Punjab, Himachal pradesh and Chandigarh.

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PAIL management of factory, which lays great emphasis on

all-around performance improvement, has rightly embarked on a

comprehensive programmes for sugar cane development, like

introduction of foundation seeds, fertilizer on subsidized rates,

supply of plant protection equipment, crop insurance, farmers

welfare scheme etc.

It is also proposed that PAIL will assist farmers in

obtaining loans for seed, fertilizer, pesticides, implements from

commercial banks as crop loan and interest component in deserving

cases is proposed to be borne by mill. At this stage a provision

of Rs 25 Lacs is also being made to provide financial aid to

farmers so that adequate cane availability can be ensured for

expansion of crushing capacity to 5000 TCD.

PRODUCTS

PAIL proposes following products

1. White crystal sugar

2. Super refined white sugar

3. Packaged soft sugar

BY PRODUCTS

1. Bagasse

2. Molasses

3. Co-generation of power

The cane for factory has a fiber content of 14.5%. The

bagasse(with 50% moisture) production is taken to be 30% on cane.

An allowance for bagacillo and start up wastes has been made and

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for the purpose of boiler combustion, the available bagasse is

taken as 28%. The potential of huge quantum of surplus bagasse,

in near future when expansion will be done to 5000 TCD crushing

capacity has given a fillip to the process of investigating the

viability of co-generation in the factory.

Power is the most essential input for industrialization and

in the Indian context, it is indeed the fulcrum on which, the

future pace of growth and development of this country rests.

Since independence we have multiplied electricity generation by

about 48 times, from 1362 MW in 1947 to over 66000 MW in 1991,

and our unrelenting efforts in this direction continue. However

the demand for power continues to grow at a rapid rate

outstripping the availability of the same. Our efforts to keep

pace with the demand put heavy burden on our limited resources,

and relatively cheaper energy sources, for achieving self

sufficiency in electricity sector assume high priority. Even with

the capacity additions planned and including the private sector

power projects likely to be put up, totaling to an installed

capacity of 99620 MW at the end of the eighth plan, the expected

shortfall is around 5000 MW.

Bagasse based co-generation for power export to the

Electricity Grid has been a subject of interest in many countries

and specifically so to the government of India. This interest is

born out of the fact, that the sugar plant co-generation holds

the promise of narrowing the ever widening gap between the power

supply and demand at low incremental cost and with short

gestation.

Looking at the power situation in Haryana state, where PAIL

is situated, it is seen that there is an appreciable shortfall in

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the installed power generation capacity, even after taking into

account all sanctioned projects, and including the state share

from central sector projects. In Haryana state, peak load demand

is very high in comparison to installed capacity, leaving a large

deficit to be managed from other resources.

It is under this context that sugar plant co-generation,

with its vast potential for the generation of surplus grid

quality power, assumes greater importance. It is estimated that

the sugar plant co-generation, if implemented in right earnest,

can augment the national grid capacity by 3500 MW at the end of

the eighth plan. Estimated deficit will actually be higher

because of delay in the commissioning/implementation of a few of

the projects. State Electricity Boards should only be happy to

take power from the co-generating sugar factories.

The exciting prospects of tapping the vast potential in the

sugar mills, has caught the attention of the power planners in

the country for the economical way of augmenting the grid power

and that of the sugar mill managements, for the newly opened up

business opportunities in the field of private power generation.

The task force for the formulation of National Programme on Bio-

Mass based co-generation in India has estimated the potential of

surplus exportable power from the sugar industries to be around

3500 MW. The task force in its report, has addressed all the

present constraints for commercially exploiting the co-generation

potential in the sugar plants, and has recommended clear policy

interventions/fiscal incentives to over come those constraints.

The Ministry of Non-conventional Energy Sources, Government of

India, seized of this matter, has announced a lot of incentives

for the setting up of the co-generation plants in sugar mills.

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Realizing the good potential available for co-generation in

their factory, and considering the thrust given by the Government

of India to this national endeavor, of exploiting the renewable

bio-mass sources of energy for the production of grid quality

power, the progressive management of M/S PAIL have decided to

implement co-generation along with the capacity expansion of the

mill.

As the first step towards this goal of implementing the co-

generation project, the mill management has appointed M/S Connect

consultants (India) Pvt. Ltd., New Delhi, as the consultants for

the preparation of the Detailed Project Report for this bagasse

based co-generation project.

The subsequent sections of the report provides the details

of the envisaged scheme, description and the layout of the plant,

manpower requirements, cost estimate and the financial analysis.

This report is prepared on the guidelines provided by the

Ministry of Non-Conventional Energy Sources, of the Government of

India.

PRESENT OPERATION OF THE FACTORY AND EXPANSION PLANNED

The operation of M/S PAIL will be started in the fag end of

crushing season of 1995-96. The PAIL is a subsidy of Piccadily

group. Piccadily has an excellent past track record and is making

profit continuously during the last ten years. It is worth

mentioning here that the market value of the shares of Piccadily

is Rs. 10/- each for cash at par aggregating Rs. 1320.00 Lakhs.

The management of the mill, which lays great emphasis on the

performance improvement all around, has rightly embarked on a

comprehensive programmes for sugar cane development, like

introduction of early varieties, fertilizer application, plant

protection, ratoon management, irrigation, so that adequate cane

availability is ensured with the expansion of the crushing

capacity to 3500 TCD in first phase and 5000 TCD in second phase.

With the above background, of the overall present operating

condition of the plant, the discussion in this section are

confined to the steam and power systems, that are of interest to

co-generation.

M/S PAIL like any other sugar mill is proposing to generate

its own electrical and thermal energy for production of sugar.

Mill has two numbers of 35.0 TPH boilers operating with outlet

steam parameters of 45.0 Kg/Sq.cm & 440 Degree C for meeting

complete motive and process steam requirements at existing

crushing capacity of 2500 TCD.

The captive power will be produced by existing two, 3.0 MW

B.P. Turbo-Generator sets, having inlet parameters as 43.0

kg/Sq.cm & 440 Degree C. These Turbo-Generator sets will generate

power at 1800 V, but the mill requirement is at 415 V, thus a

step down transformer will be used. The captive power requirement

of the sugar mill at the crushing capacity of 2500 TCD is about

4.0 MW which will be generated by existing turbines at the steam

consumption rate of 8.0 kg/KWhr. The captive steam requirement

will be met by the exhaust steam at 1.5 kg/Sq.cm from these

turbines. Separate PRDS is provided to meet the steam requirement

of the centrifugal and sulphur melting etc at 7.0 kg/Sq.cm.

Both the boilers in the existing system are dumping grate

type and are provided with airpreheaters and economizers. The

steam to bagasse ratio of these boilers is 2.25. The

instrumentation provided on boilers, Turbo-Generator sets and

other auxiliaries are adequate for efficient operation of the

sugar mill.

The Proposed Capacity Expansion

The sugar mill is designed in such a way that it could

expand its crushing capacity to 3500 TCD in first stage and 5000

TCD in second stage. This design also keeps the possibility of

exporting surplus cogenerated power at various stages of

expansion in mind.

There are four mills in the existing sugar mill system, each

driven by a separate electric motor. Two of these four motors are

of 250 HP and remaining are of 350 HP. The rating of existing

motors indicate the future plan of expansion to 5000 TCD. These

motors will be under utilized at the existing crushing rate.

It is planned to retain existing milling tandem and by

adding equipment like GRPF etc on the same mills the crushing

will be increased to 5000 TCD in stages. One of the major aim of

modernization is to achieve and maintain the process steam

consumption down to 44 % for boiling house needs and 3 % at 7.0

kg/Sq.cm steam for centrifugals etc. To achieve this, it is

planned, to add more evaporator bodies, continuous pans and to

effectively use vapor bleeding for juice heating and pan boiling.

The first stage of expansion will lead to a crushing

capacity of 3500 TCD. This expansion will increase the mills

process steam and power requirement. To meet the new requirements

and to properly utilize the available bagasse a new high pressure

boiler of capacity 50.0 TPH with outlet parameters as 65.0

kg/Sq.cm & 485 Degree C will be installed. The capacity of this

boiler is decided keeping the future expansion in mind. A B.P.

5.0 MW Turbo-Generator set will also installed to generate power

for captive use and generate excess power for export to the grid.

This turbine will generate 5.0 MW of power at a steam consumption

rate of 7.2 kg/KWHr. This turbine will be back pressure type

keeping the future process steam requirement in mind.

The second stage of expansion will lead to a crushing

capacity of 5000 TCD. This expansion will again increase the

mills captive process steam and power requirement. To meet the

new requirements and to properly utilize the available bagasse a

new high pressure boiler of capacity 50.0 TPH with outlet

parameters as 65.0 kg/Sq.cm & 485 Degree C will be installed. The

capacity of this boiler is decided to completely consume the

available bagasse and is sized at 50.0 TPH remembering the fact

that the identical boilers will simplify the net system operation

and maintenance. A 12.5 MW Condensing Extraction Steam Turbo-

Generator set will also be installed at this stage for generating

excess power for export to the grid. This will be a stand alone

system which will supply power only for export. The steam

consumption rate of this turbine will be 8.77 kg/KWHr at 7.0

kg/Sq.cm extraction, 6.21 kg/KWHr at 1.5 kg/Sq.cm extraction and

4.17 kg/KWHr at condensing pressure.

CO-GENERATION IN EXPANSION

Management of mill have found that it fits well to go in for

co-generation simultaneously with expansion. Typically an ideal

co-generation plant in a sugar factory is one which takes care of

both steam and power requirement of factory. By proceeding with

both expansion and co-generation together, there are definite

advantages like, planning for common infrastructure, planned

addition of boilers and turbo-generator set of suitable

capacities.

At the crushing capacity of 3500 TCD the mill will

cogenerate surplus power of about 4.94 MW for export. The captive

requirement at this stage will be a net of 6.06 MW which

includes 5.44 MW of sugar mill’s requirement and 0.625 MW of co-

generation plant’s requirement. At this stage mill will have two

3.0 MW Turbo-Generator sets and one 5.0 MW B.P. Turbo-Generator

set generating a total of 11.0 MW. The power generated by 5.0 MW

Turbo-Generator set will be at 11 KV. The power from two 3.0 MW

Turbo-Generator sets at 1800 V and a part of the power, about

0.062 MW, from 5.0 MW Turbo-Generator set at 11 KV will be

stepped down to 415 V for meeting the captive power requirements.

At the crushing capacity of 5000 TCD the mill will

cogenerate surplus power of about 11.20 MW for export. The

captive requirement at this stage will be a net of 9.105 MW which

includes 8.215 MW of sugar mill’s requirement and 0.89 MW of co-

generation plant’s requirement. At this stage mill will have two

3.0 MW Turbo-Generator sets, one 5.0 MW B.P. Turbo-Generator set

and one 12.50 MW Condensing Extraction Steam Turbo-Generator set

generating a total of 20.3 MW. The power generated by 5.0 MW and

12.5 MW Turbo-Generator sets will be at 11 KV. The power from two

3.0 MW Turbo-Generator sets at 1800 V and a part of the power,

about 3.105 MW, from 5.0 MW Turbo-Generator set at 11 KV will be

stepped down to 415 V for meeting the captive power requirements.

The foregoing clearly proves decision of the mill

management to go in for co-generation along with expansion will

result in proper planning for equipment capacities and reduction

in over all capital investment.

THE COGENERATION SCHEME

Co-generation is generation of electrical and thermal energy

(through process steam) simultaneously by an industry. The sugar

manufacturing process requires steam at low temperature and

pressure and electricity for various operation in the mill.

Currently low pressure bagasse fired boilers are used in sugar

mills to generate steam at low temperature and pressure. This

steam is first run through various Back Pressure(B.P.) turbines

to generate power, run mill and operate fiberizor. Exhaust steam

at about 1.5 Kg/Sq.cm is available from various turbines for

process use. High pressure process steam at about 7.0 Kg/Sq.cm

can be directly extracted at the inlet or at suitable points from

power turbines. Thus generation of power and process steam makes

sugar mill self sufficient during crushing season and for

achieving this part of generated bagasse is burned.

As is known from Carnot cycle, high temperature cycles are

essential for efficient utilization of input heat. Due to lack of

interest and proper guideline for buying surplus power, sugar

mills were refraining from optimizing their power generation

system. Recently a number of State Electricity Boards have

announced their policy & guideline for buying surplus co-

generated power through different schemes. This has created a

conducive environment for co-generating surplus power. To improve

the cycle efficiency steam generation has to be at high

temperature and corresponding pressure, but available material

technology limits the highest temperature attainable in a cycle.

In the case of sugar mill co-generation, availability of bagasse

for burning, limits the capacity of the high pressure boilers.

The design temperature of high pressure steam is also

dictated by the available turbine designs. Temperature up to 400

Degree C require the normal carbon steel in the turbine design

but alloy steel has to be used for inlet temperatures higher than

400 Degree C. The material requirement becomes still critical for

inlet temperatures above 500 Degree C. Keeping these facts and

thermodynamics of cycle in mind the most economical boiler

pressure & temperature works out to be 65.0 Kg/sq.cm, 485 Degree

C. This pressure and temperature becomes 63.0 Kg/sq.cm, 480

Degree C by reaching the turbine inlet.

High pressure and temperature steam can be optimally

utilized by using in a condensing turbine. Steam for process use

can be extracted from the suitable points at intermediate stage

from condensing turbine in the desired quantity.

FEASIBILITY STUDY

The feasibility study analyzed various cases, like

* The condensing extraction steam turbine(CEST)

* The straight condensing steam turbine(SCST)

* The back pressure steam turbine(BPST)

and schemes with,

* Completely new high pressure boilers

* A combination of existing boilers and turbo generating sets

and new high pressure boilers and corresponding Turbo-

Generator sets

Following facts were carefully scrutinized in relation to

above options-

* Existing mill and equipment are relatively new

* Constraint on capital cost

* Thermodynamics of total cycle

Finally the scheme with a combination of existing system and

new high pressure boilers, a new B.P. Turbo-Generator set and a

new Condensing Extraction Steam Turbo-Generator set was found

most suitable.

CO-GENERATION SCHEME

The proposed co-generation system is split into following

three systems -

The schematic of PAIL’s co-generation configuration is given

in Figure 3.1.

The first system comprises of the two existing 35.0 TPH,

45.0 kg/Sq.cm, 440 Degree C boilers and both of 3.0 MW B.P.

Turbo-Generator sets. This system basically caters to the sugar

plants steam & electricity requirement at the crushing capacity

of 2500 TCD.

The second system comes into picture at the crushing

capacity of 3500 TCD and consists of a new high pressure boiler

of 50.0 TPH capacity at 65.0 kg/Sq.cm, 485 Degree C and one 5.0

MW B.P. Turbo-Generator set. The exhaust from the two 3.0 MW

Turbo-Generating sets and one 5.0 MW Turbo-Generator set meets

the mill's process steam requirement at 3500 TCD. A part of power

generated by the 5.0 MW B.P. Turbo-Generator set is available in

surplus for export to the grid.

The third system that is stand alone, comprises of a 50.0

TPH, 65.0 kg/Sq.cm, 485 Degree C boiler and one 12.5 MW

Condensing Extraction Steam Turbo-Generator set. This system uses

the remaining bagasse for steam production at a crushing capacity

of 5000 TCD.

OPERATING PARAMETERS OF PLANT AND CO-GENERATION SYSTEM

Plant will be operating during the crushing season using

bagasse as fuel.

Crushing capacity of the plant will be 5000 TCD eventually,

but most of the plant design calculations are done on the basis

of 3500 TCD capacity which plant will achieve within few seasons.

Already two boilers of 35.0 TPH, 45.0 Kg/sq.cm, 440 Degree C and

two back pressure Turbo-Generator sets of 3.0 MW capacity each

are bought to meet the captive requirements at 2500 TCD crushing

capacity.

A 5.0 MW B.P. Turbo-Generator set will be added to the plant

keeping the process steam requirement at 5000 TCD capacity in

mind. This Turbo-Generator set will co-generate surplus power at

crushing capacity of 3500 TCD.

The span of crushing season varies from 160 to 180 days.

Crushing season starts in the month of October and ends in the

month of April.

About 30% bagasse is generated on cane. This bagasse has 50%

moisture in it.

The average quantity of fibre on cane crushed is about 14.5%

which varies from 13.5% to 15% during season.

All the drives in the mill are Electric Motors, except

fiberizor. Fiberizor is driven by a 3.0 MW B.P. Turbo-Generator

set.

Total steam consumption of the plant is about 47% on cane,

out of which 44 % is at 1.0 Kg/Sq.cm, 120 Degree C and 3 % at

about 7.0 Kg/Sq.cm. Losses in steam system are included with high

pressure steam.

Both 3.0 MW Turbo-Generator sets are retained in the design

of co-generation system for exporting surplus power.

The existing two boilers of 35.0 TPH, 45.0 kg/Sq.cm, 440

Degree C are also retained in the new design of co-generation

system. These boilers have steam to bagasse ratio of about 2.25

and will continue to give this performance for their entire life,

with the inlet feed water temperature of 105 Degree C at the

entry of economizer.

The proposed new boilers of 50.0 TPH shall be with the steam

parameters of 65.0 kg/Sq.cm, 485 Degree C at the boiler outlet.

With these steam parameters, new boilers will have a steam to

bagasse ratio of 2.20.

The pressure and temperature requirements of process steam

at the consumption points as 1.0 Kg/Sq.cm, 120 Degree C for the

sugar plant, the back pressure or the extraction pressure is

taken as 1.5 Kg/Sq.cm to meet the pressure losses in the pipe.

The superheated steam extracted at 1.5 kg/Sq.cm and temperature

of about 170 Degree C is first brought down to 120 Degree C.

The 3.0 MW Turbo-Generator sets generate power at 1800 V

which is stepped down to 415 V for captive power requirement. The

5.0 MW Turbo-Generator set will generate power at 11 KV, part of

this power will be stepped down to 415 V to meet captive power

requirement at 5000 TCD crushing capacity and remaining power

will be as such exported to the grid. The power generation by the

Condensing Extraction Steam Turbo-Generator set will be at 11 KV.

All the power from this Turbo-Generator set will be stepped up to

33 kV for export and will be synchronized with the grid.

Steam Balance

With the implementation of the co-generation and the

expansion programs the plant’s Steam and Condensate balance at

5000 TCD will be as shown in Figure 3.2. The process steam

requirement with 47% on cane comes out to 74.8 TPH for the cane

crushing rate of 159.1 TPH (3500 TCD in 22 Hours). Out of this

70.0 TPH is required at 1.5 kg/Sq.cm and the balance of 4.8 TPH

is required at 7.0 kg/Sq.cm.

The existing 35.0 TPH boilers, generate 54.0 TPH of steam to

be fed to the three existing 3.0 MW B.P. Turbo-Generator sets.

The 1.5 kg/Sq.cm exhaust steam from these turbines is taken to

the plant's 1.5 kg/Sq.cm process steam header. The two 3.0 MW

Turbo-Generator sets assigned for power will be run at their full

capacity, consuming 48.0 TPH of 43.0 kg/Sq.cm steam. The

fiberizor turbine will consume 6.0 TPH of 43.0 kg/Sq.cm steam to

generate 0.75 MW of power.

The balance of the process and the deaeration steam

requirement of 20.4 TPH (70.0 + 4.4 - 54.0) will be met by the

50.0 TPH boiler. Because of the availability of excess bagasse,

the new boiler will produce 36.0 TPH steam to meet complete

requirement of 5.0 MW B.P. Turbo-Generator set. The process steam

requirement of 4.8 TPH at 7.0 kg/Sq.cm will be taken through

PRDS. The remaining 10.8 TPH (36.0 - 20.4 - 4.8) will go back to

boiler as feed, at a crushing capacity of 3500 TCD. The 50.0 TPH

boiler is selected at this stage keeping the future expansion in

mind.

Similarly at the cane crushing rate of 227.27 TPH (5000 TCD

in 22 Hours) the process steam requirement with 47% on cane comes

out to 106.8 TPH. Out of this 100.0 TPH is the required at 1.5

kg/Sq.cm and the balance of 6.8 TPH is required at 7.0 kg/Sq.cm.

The existing 35.0 TPH boilers, generate 57.0 TPH of steam to

be fed to the three existing 3.0 MW B.P. Turbo-Generator sets.

The 1.5 kg/Sq.cm exhaust steam from these turbines is taken to

the plant's 1.5 kg/Sq.cm process steam header. The two 3.0 MW

Turbo-Generator sets assigned for power will be run at their full

capacity, consuming 48.0 TPH of 43.0 kg/Sq.cm steam. The

fiberizor turbine will consume 9.0 TPH of 43.0 kg/Sq.cm steam to

generate 1.12 MW of power. The 5.0 MW B.P. Turbo - Generator set

will be running at full capacity consuming 36.0 TPH of 63.0

kg/Sq.cm of steam. This will fetch 36.0 TPH of exhaust steam at

1.5 kg/Sq.cm.

The balance of the process steam requirement of 13.9 TPH

(100.0 + 6.9 - 57.0 - 36.0) will be met by the new Condensing

Extraction Steam Turbo-Generator set. The availability of excess

bagasse leads to installation of another 50 TPH boiler and proper

utilization of earlier erected 50.0 TPH boiler. The high pressure

steam from these two boilers is fed to 12.5 MW Condensing

Extraction Steam Turbo-Generator set, the quantity of extraction

being 20.7 TPH. Out of 106.8 TPH total process steam requirement

6.8 TPH is at 7.0 kg/Sq.cm, which will be suitably extracted from

Condensing Extraction Steam Turbo-Generator set. With the above

extractions and exhaust flows this Turbo-Generator set will

generate about 9.3 MW of power.

Condensate and Water Balance

A total steam quantity of 79.2 TPH is required to meet the

process steam requirement of 74.8 TPH and deaerator steam

requirement of 4.4 TPH at the crushing capacity of 3500 TCD. The

process steam supplied to the juice heaters is returned back as

condensate. The process steam supplied to the evaporator bodies

is also taken as condensate return depending upon its

cleanliness. About 10.8 TPH of steam at 1.5 kg/Sq.cm will be

available as a return to boiler from the exhaust of 5.0 MW Turbo-

Generator.

A total steam quantity of 113.7 TPH is required to meet the

process steam requirement of 106.8 TPH and deaerator steam

requirement of 6.9 TPH at a crushing capacity of 5000 TCD. Other

than steam from juice heaters and vapor bodies, about 26.2 TPH of

condensate will be available from 12.5 MW Condensing Extraction

Steam Turbo-Generator set's surface condenser. This condensate is

sent to condensate storage tank.

The difference in the boiler feed water requirement and

condensate return will be filled by the feed from vapor

condensate tanks or the DM water storage tank. The mixed feed is

supplied as boiler feed water in the quantity of 91.0 TPH at the

crushing capacity of 3500 TCD and 141.3 TPH at the crushing

capacity of 5000 TCD.

Bagasse Balance

With the crushing capacity of 159.1 TPH (3500 TCD in 22

Hours), and with the bagasse generation at the rate of 30% on

cane, the bagasse generated will be 47.73 TPH (in 22 Hours).

About 1.72 TPH of fine bagasse dust known as bagacillo, is

separated through a sieve arrangement, for mixing with the

clarifier mud for filteration in the vacuum filters. The balance

of 48.01 TPH of bagasse is taken to the bagasse storage yard,

from where the bagasse will be fed to the boilers through a

reclaimer. About 1.46 TPH (this quantity and bagacillo together

will be 2% of the bagasse produced) is set aside for losses and

to meet the additional fuel requirement for the start up of the

boilers. A net usable amount of about 40.82 TPH will be

continuously fed to the operating three boilers through bagasse

conveyors. About 3.73 TPH bagasse will be left as surplus.

With the crushing capacity of 227.27 TPH (5000 TCD in 22

Hours), and with the bagasse generation at the rate of 30% on

cane, the bagasse generated will be 68.18 TPH (in 22 Hours).

About 2.44 TPH of fine bagasse dust known as bagacillo, is

separated through a sieve arrangement, for mixing with the

clarifier mud for filteration in the vacuum filters. The balance

of 65.74 TPH of bagasse is taken to the bagasse storage yard,

from where the bagasse will be fed to the boilers through a

reclaimer. About 2.1 TPH (this quantity and bagacillo together

will be 2% of the bagasse produced) is set aside for losses and

to meet the additional fuel requirement for the start up of the

boilers. A net usable amount of about 63.64 TPH will be

continuously fed to the operating four boilers through bagasse

conveyors. At the sugar plant crushing capacity of 5000 TCD there

will be no excess bagasse left as surplus during season as, the

co-generation system is configured for optimum power generation

at this stage. Figure 3.3 gives the bagasse balance for the sugar

mill.

Power Balance

The gross power generation in the mill, with the co-

generation system working at the crushing capacity of 3500 TCD

will be 11.0 MW. The power requirement of the sugar manufacturing

process side of the 3500 TCD crushing capacity plant for running

various auxiliaries will be 5.44 MW. The total power requirement

of the first new high pressure boiler for co-generation, the B.P.

Turbo-Generator set and all other auxiliaries of the co-

generation system is estimated to be 0.62 MW. The net exportable

power will be 4.94 MW at the bus.

The estimated power generation in the mill at the crushing

capacity of 5000 TCD will be about 20.3 MW. The estimated power

requirement for the mill at this stage will be 8.21 MW. The

total power requirement of the second new high pressure boiler

for co-generation, the new Condensing Extraction Steam Turbo-

Generator set and all other auxiliaries of the co-generation

system is estimated to be 0.89 MW. The net exportable power will

be about 11.2 MW at the bus. The Figure 3.4 gives the power

balance for the sugar mill with the installation of the co-

generation plant and after the completion of the expansion.

DESCRIPTION OF MECHANICAL SYSTEMS & EQUIPMENT

The proposed co-generation plant for M/S Piccadily Agro

Industries Limited will have, a gross power generation of 11.0 MW

at a crushing capacity of 3500 TCD and 20.30 MW at a crushing

capacity of 5000 TCD. The co-generation scheme will have a

combination of existing boilers & Turbo-Generators and one new

high pressure boiler of 50.0 TPH capacity & one B.P. Turbo-

Generator set of 5.0 MW capacity at a crushing capacity of 3500

TCD and another new boiler of 50.0 TPH capacity & one Condensing

Extraction Steam Turbo-Generator of 12.5 MW at a crushing

capacity of 5000 TCD. Here we will discuss only the new equipment

installed or will be installed for co-generation at various

stages.

First stage of co-generation plant will consist of one

bagasse fired boiler of capacity 50.0 TPH coupled to one B.P.

Turbo-Generator set of 5.0 MW capacity. The steam parameters at

the outlet of the boiler superheater will be 65.0 kg/Sq.cm and

485 Degree C. The turbine throttle valve inlet pressure and

temperature, will be 63.0 kg/Sq.cm & 480 Degree C and difference

in the boiler outlet parameters and turbine inlet parameters

takes care of the losses in the piping.

Second stage of co-generation plant will have one more

bagasse fired boiler of 50.0 TPH coupled to one Condensing

Extraction Steam Turbo-Generator of 12.5 MW capacity. The steam

parameters at the outlet of the boiler will be same as stage one

but the turbine in second stage will have steam extraction of

about 6.82 TPH at 7.0 kg/Sq.cm and about 16.0 TPH at 1.5

kg/Sq.cm. The remaining steam, will go to the surface condenser

as exhaust.

In addition to the main power generating equipment, the

plant will be complete with the necessary auxiliary facilities

such as fuel storage and handling system, condensate and feed

water system, cooling water system, electrical system including

power evacuation facilities, ash handling system, compressed air

system and fire protection system.

Steam Generator

The steam generating system for the co-generation plant will

consist of two bagasse fired boiler with all the auxiliaries.

Each boiler shall be of semi-outdoor type, and shall be of bi-

drum, natural circulation, balanced draft, radiant furnace design

with two stage superheaters. The boiler shall be designed with

water cooled membranes/fin welded and the refractory work in the

boiler shall be kept to the barest minimum possible. The rating

of each steam generator shall be 50.0 TPH at the superheater

outlet with the steam pressure and temperature of 65.0 kg/Sq.cm

and 485 Degree C, when supplied with the feed water at a

temperature of 105 Degree C.

The boiler shall be designed for 100% bagasse firing and

there shall be no support fuel. The firing system of the boiler

shall comprise of continuous ash discharge traveling or dumping

grate, variable speed rotary feeder and pneumatic spreaders. The

bagasse feeding system shall include the bagasse storage silo in

front of the boiler with the storage capacity of at least for ten

minutes at MCR requirements. Appropriately designed feeders, with

variable speed drives, suitable for boiler combustion control

operation shall be provided.

The boiler convection shall be of multiple pass, baffled

type construction formed by an array of tubes connecting the

steam and water drum. The entire boiler block shall be GI/Steel

cased and provided with adequate buckstays designed to take over

and under pressure in the furnace.

The superheater provided shall be pendant type vertically

suspended type located in the first convection pass of the

boiler. It shall be designed to achieve rated steam temperature

at maximum continuous rating. The desuperheating system

(attemperator) shall be located in between the two stages of the

superheaters, and shall be either spray type, with the condensate

of steam from the drum used as spray water, or surface water. The

tolerance of the superheater outlet shall be +5 to -5 and

controlled over the operating range of boiler.

The boiler shall be provided with one bare tube in line

construction type economizer to utilize the flue gas heat to

raise the feed water temperature and one tubular flue gas air

preheater to recover heat from the flue gases to heat combustion

air.

The boiler shall be designed to operate under balanced draft

conditions and suitable ID and FD fans driven by electric motors

are to be provided. The fan capacities, capacity margins and the

margin in the head shall be adequate and in line with the

standard practices followed. The fans will be dynamically

balanced and operate without undue vibrations. High pressure

secondary air nozzles are to be provided in number of rows in the

front and rear walls to create adequate air turbulence,

temperature and time for the complete combustion of volatile

matter released from the bagasse.

The boiler design shall have adequate number of soot blowers

for effective cleaning of the superheaters and convection bank

tubes. The Drawing No. 4-785212-1 gives the scheme for steam

generator air and flue gas system.

The boiler shall have a dust collector (Mechanical Multi

cyclone type or Electro-Static Precipitator) to reduce the dust

leaving the boiler to a suitable level. Induced draft fan is

designed and sized to take care of additional draft loss in the

dust collector.

The boiler shall be provided with microprocessor based

instrumentation and control system.

Steam Turbine & Auxiliary System

The Piccadily Agro Industries Limited's co-generation

scheme/project envisages the addition of one 5.0 MW Turbo-

Generator set at the crushing capacity of 3500 TCD and another

one 12.5 MW Condensing Extraction Steam Turbo-Generator set at

the crushing capacity of 5000 TCD. The 5.0 MW turbine will be a

single casing, impulse reaction, back pressure type with back

pressure of 1.5 kg/Sq.cm. The 12.5 MW turbine will be a single

casing, impulse reaction, condensing extraction type with

controlled extraction of 6.8 TPH at 7.0 kg/Sq.cm and uncontrolled

extraction of about 13.9 TPH at 1.5 kg/Sq.cm, rest of the steam

goes to condenser at 0.1 kg/Sq.cm.

The steam inlet into the turbines is through emergency stop

and control valves actuated by hydraulic cylinders and controlled

by the governing system. The extraction points on the turbine are

located such that the pressure of steam after the external

control valve shall be 7.0 kg/Sq.cm and for the pressure after

the internally controlled valve shall be 1.5 kg/Sq.cm. Quick

closing non-return valve shall be provided on the extraction

lines. The exhaust from the CEST-G set goes to a surface

condenser operating at 0.1 kg/Sq.cm. The turbine shaft sealing

system shall consist of labyrinth packing and shall be sealed

with steam. The sealing steam escaping the outer packing boxes

shall be condensed in a gland steam condenser.

For the Turbo-Generator sets the control and lube oil system

shall be separate. The lube oil system for each turbine shall

meet the requirements of the gearbox and turbine. The forced feed

lubrication system shall consist of main oil pump, auxiliary pump

with automatic switching at start-up and when main oil pump is

not supplying oil at desired pressure, two water cooled oil

coolers of sufficient capacity and one set of oil filters. The

auxiliary oil pump shall be D.C. motor driven. A common oil

storage tank of adequate capacity with suction filters, vapor

exhaust fan, etc. shall be provided. Necessary oil pressure

reducing valves for catering to the lube oil requirements,

orifices and sight flow glasses shall form part of the oil

system. One centrifugal oil purifier for each of the Turbo-

Generator set shall be provided. The Drawing No. 4-785212-2 gives

the oil system scheme, applicable for the proposed Turbo-

Generator.

Each of the Turbo-Generator set shall be provided with a

user friendly modern governing system that shall be user

configurable in the field. The safety system of the Turbo-

Generator set shall be designed to protect the Turbo-Generator

set against inadmissible operating conditions such as, rotor over

speed, high shaft axial displacement, low lube oil pressure, low

control oil pressure, high condenser pressure and high

vibrations.

The reduction gear boxes between the turbine and the

generator shall be designed with a minimum service factor of 1.3.

It shall be capable of transmitting the maximum rating of the

turbine and shall withstand 20% over speed over a period of a

minimum of five minutes. The gear box and coupling shall meet the

requirement of AGMA standards.

Condenser and Auxiliary Cooling Water System

The condenser system of the 12.0 MW Turbo-Generator set

consist of a surface condenser with divided water boxes, with

each section amenable for cleaning independently with the turbine

load reduced. One starting ejector capable of pulling 60 % vacuum

in twenty minutes and one main operating ejector of two stag twin

element type with inter and after condenser shall be provided.

The hotwell level control system operating through the two

control valves in the discharge and in the recirculating

condensate lines shall ensure that adequate net positive suction

head is available for the condensate extraction pump. The two

condensate extraction pumps, one for working and another for

standby, shall handle the condensate from the hotwell through the

ejector condensers, gland steam condenser and to the condensate

storage tank. The Drawing No. 4-785212-3 gives the scheme of

steam and condensate system for 12.5 MW condensing Turbo-

Generator.

The general scheme of Cooling water system is given in

Drawing No. 4-785212-4. This cooling water system caters to the

cooling water requirements of the condenser of the Turbo-

Generator set and the auxiliaries of the steam generator. A three

cell , induced draft cooling tower will be in operation to meet

the cooling water requirements. The hot water returning from the

condenser and Turbo-Generator set and boiler auxiliaries are

cooled in cooling tower designed for a cooling range of 10 Degree

C and an approach of 5 Degree C while operating under the

atmospheric wet bulb temperature of about 27 Degree C.

Raw water from the bore well will be drawn, as is being

presently done to meet the requirements of sugar plant and will

be stored in the raw water tank for the purpose of meeting the

makeup required for the cooling tower and that for the DM water

plant. There are two cooling tower makeup water pumps one working

and one remaining as standby, supply the raw water to the cooling

water forebay. From the forbay water flows into the suction of

the cooling water pumps. There will be four cooling water pumps

each with adequate head required to meet the pressure drop in the

entire circuit. Out of the four pumps, three will be in the

operation to meet the complete requirement of the condenser as

well as the auxiliaries of the Turbo-Generator set and steam

generator and one will remain as standby. Necessary stop locks

and springs will be provided in the cooling tower forbay.

The outlet from the cooling water pumps is conveyed to the

surface condenser and to the auxiliaries of the Turbo-Generator

set and the boiler through mild steel buried pipes. Similarly the

hot water from the condenser as well as that from the auxiliaries

will be conveyed to another mild steel pipe and to the cooling

tower and appropriately distributed to the three cells at the

top. The buried steel piping carrying the cooling water will be

internally painted as well as externally protected against

corrosion. It is to be noted that the final optimum size of the

pipes would be arrived at only after the optimization study of

the cooling water system being done at the detailed engineering

stage of the project.

Cast iron gate valves as well as butterfly valves shall be

appropriately placed at the pump inlet and outlet, condenser

inlet and outlet at the cooling tower hot water inlet, etc..

Suitably sized rubber expansion joints will be provided in the

piping network to facilitate dismentaling , installation of

valves and to take care of any misalignment/expansion of the

piping. Automatic air release cum vacuum breaker valves, manual

vents/drain valves will be provided in the condenser cooling

water system.

To prevent/minimize the growth of algae in the cooling water

system chlorine dosing is proposed. Provision will be made for

shock dosing at 3.0 PPM or continuous dosing at 1.0 PPM. Adequate

number of one tonne capacity chlorine cylinders to meet fifteen

days requirements.

It is envisaged that even for the auxiliaries of the Turbo-

Generator set and the boiler the same cooling water will be used.

Since the make up water available is of good quality and with

proper blow down from the cooling tower the hardness in the

cooling water could be easily maintained less than the

precipitation hardness. Hence no close loop system of cooling

using DM water is suggested for the auxiliaries.

Service And potable Water System

The service water system supplies water to toilets, general

washing, gardening, dust suppression system, make up water for

air conditioning plant etc..To meet the service water

requirements of the co-generation plant, the sugar plant`s

facilities could be extended. Similarly, the potable water

requirements of the new plant shall have to be met by extending

the sugar plant potable water system.

Compressed Air System

The requirement of the compressed air for various

instrumentation and control systems of the proposed co-generation

plant will be supplied by compressors with one set operating and

another set remaining as standby. The air compressor shall be of

reciprocating, non-lubricating type and shall be provided with

the accessories like inter-coolers, after-coolers, moisture

separators, driers, air receiver and control panel. The common

air drier unit shall comprise of 2 X 100 % driers, with one of

the driers in operation at any point of time and the other one on

regenaration mode.

Air Conditioning And Ventilation System

The plant control rooms house the controls for the boilers

and Turbo-Generator sets and shall be air conditioned with window

mounted air conditioners. The Turbo-Generator sets and other

buildings shall be provided with suitable exhaust fans or a

combination of supply and exhaust fans.

Fuel Handling System

The co-generation plant proposed for PAIL, depends on the

bagasse generated in the sugar mill for its fuel requirements.

The boilers are designed to burn 100 % bagasse.

The proposed high pressure and temperature boilers are with

membrane wall and minimum refractory are very sensitive to fuel

feed and to ensure steady operation a continuous fuel feed system

should be adopted. The conventional system of feeding the boiler

with the bagasse coming directly from the mill has the drawback

of a complete stoppage of the fuel feed to the boiler, if and

when the mill stops and the occasions are not infrequent. Even

though provision for the back feeding the bagasse on to the

return bagasse conveyors are available, because of human

intervention, there is always time delay and boiler starves for

fuel. To overcome the problem of time delay, attempts have been

made, with good amount of success, to provide a storage silo in

front of the boiler, at least to cater to about ten minutes

requirement, of the fuel at MCR.

The scheme of bagasse handling system for PAIL co-generation

plant is given in Drawing No. 4-785212-6. The scheme is drag type

conveyor system, with a provision of storage capacity to meet the

requirement of boilers for minimum of ten minutes when running at

MCR. The bagasse will be taken to the storage yard through

conveyors and distributed along the length of the yard through

gates and chutes located along the length of the conveyor. A

bagasse reclaimer in the form of a continuous endless conveyor

moving along the length of the storage yard distributes and feeds

the bagasse continuously on to an underground conveyor. This

conveyor rises up and feeds the bagasse on to another conveyor

running in front of the boilers, above the bagasse storage silos

and bagasse is fed to the storage silos from the conveyor. Any

excess bagasse shall be returned to storage yard through the

return bagasse conveyor. The capacity of the bagasse conveyor

shall be 50.0 TPH, adequate to meet the requirement of the

boiler. The operation of the entire conveyor system shall be

controlled from the control room.

Ash Handling System

The ash handling system envisaged now is only for the new

65.0 kg/Sq.cm high pressure boiler. The ash from the existing

boiler will be continued to be handled in the same way as is

being done presently. The system proposed for the new boiler

shall be mainly dry handling, except for the furnace bottom ash.

The drawing No. 4-785212-7 gives the scheme of the ash handling

system for the co-generation project.

The furnace bottom ash from the hoppers shall be handled by

the water impounded submerged scrapper conveyors, and fed on to

the main belt conveyor. Since this ash will be very hot it is

essential that it is cooled before it is fed on to the belt

conveyors. The other ash collection points in the boiler are

airpreheater hopper and dust collector hoppers. The ash collected

in these two places will be dry and powdery. The ash discharged

from these points through rotary pocket feeders will be conveyed

to the main belt conveyor through screw conveyors. At the point

of discharge of the ash from the screw conveyor on to the belt

conveyor, water sprinklers are provided to suppress the dust.

The ash silo storage will be adequate for ash generated

during bagasse firing. The ash from the silo will be disposed off

to the ash disposal area through trucks.

Condensate and DM Water System

For the co-generation project at PAIL there will be two

sources of condensate water. The Drawing No. 4-785212-5 gives the

scheme of the Condensate and DM water system proposed for the co-

generation plant. One is from the surface condenser of Condensing

Extraction Steam Turbo-Generator set and the other one is from

the process side of the sugar plant. The condensate from the

sugar plant itself is categorized into two. One is the condensate

of the exhaust steam used in the juice heaters and evaporators,

which is uncontaminated and can be used as such as boiler feed

water.

The other category from the sugar plant is the condensate of

the vapors from the evaporators and the pans. These vapor

condensate are likely to have, at time, traces of sugar and hence

the usage of this condensate as boiler feed water should be done

only after proper monitoring for the quality of condensate.

The condensate from the surface condenser is pumped by the

condensate extraction pumps to the condensate storage tank. The

steam condensate from the process is also led into this

condensate storage tank. The make-up either from the DM water

storage tank or from the vapor condensate tanks, depending upon

the quality of vapor condensate, will also be added to the

condensate storage tank. Boiler feed water from this condensate

storage tank will be pumped to the deaerator through transfer

pumps. The deaerator will be equipped with a deaerator feed water

storage tank. The level inside the deaerated feed water storage

tank shall be maintained at a constant set of valve by

controlling the quantum of feed water pumped by the transfer

pumps. The deaerated feed water from the feed water storage tank

will be supplied to the steam generated by means of boiler feed

water pumps. There will be a number of electrically driven feed

water pumps to cater to the new 65.0 kg/Sq.cm boilers.

To cater to the make-up water requirements of the steam

generator turbine cycle, a demineralized water plant is being

proposed. The DM plant will consist of cation, degasser, anion

and mixed bed ion exchange units along with associated

regeneration system. The DM plant shall have a regeneration time

of 8.0 hours in a day. The source of water for the DM plant will

be from the raw water tanks through raw water pumps. Raw water

from the outlet of these pumps shall be taken directly to the DM

plant. A demineralized water storage tank will be installed in

the DM water area to store the make-up water requirement for the

co-generation plant. Adequate storage of acid and alkali used for

the regeneration of DM plant shall be provided in the DM plant

area. A neutralizing pit for the treatment of the effluents from

the DM plant is envisaged and other neutralization the effluent

will be disposed off into the existing sugar plant’s effluent

disposal system.

Instrumentation And Control System

The plant will be complete with the basic instrumentation

and control system necessary for its safe and efficient

operation.

Comprehensive instrumentation and control equipment will be

provided for each component system of the plant. The control of

each unit will be located in the central control room.

Instrumentation will broadly cover the following functions :

* Locals indications by gauges.

* Remote indications through transmitters with facility for

recording of critical parameters.

* Interlock for safety of personnel/equipment.

* Closed loop control system using single loop controllers.

* Status indications.

* Alarm annunciation.

Controls and interlocking will be of electronic type using

microprocessor based hardware. Actuation will be done generally

with pneumatic actuators. Regulation of the turbine will be

through Electro-Hydraulic system.

The microprocessor based instrumentation and control system

is proposed keeping in view the safety, reliability and

availability for comprehensive presentation of plant operation

status, trends and essential operator interaction facility.

Microprocessor based systems have the following inherent

advantages :

* Increased reliability due to use of Large Scale Integrated

(LSI) components.

* Increased flexibility for modification at any stage due to

software configuration capability.

* Better availability due to provision of circuit redundancy

and manual back-up.

* Expendability for future as both hardware and software are

modular in structure.

* High maintainability due to improved self-diagnostic and

display features.

* Ability to include Data Acquisition System and Improved man-

machine interaction with colour graphic CRT control

stations, at a later date.

Transmitters required for the measurement and control will

be of electronic type using solid state hardware. Field signal

transmission will be 4 - 20 mA, two wire system in view of the

following advantages :

* Suitability for long distance transmission.

* Compatibility with computer interface and

* Ease of conversion into voltage signals using simple

resistors.

Closed loop control system will be provided for steam

generators, Turbo-Generator sets and their auxiliaries with

processor and sensor level redundancy.

The control system will be designed to facilitate manual

operation of the plant from Control Panel. Necessary hardwired

indicators and recorders will be provided on the Control Panel

located in the central control room/rooms.

Both closed and open loop controls for a single equipment

will be integrated in a single microprocessor based system.

Alternatively, closed loop controls will be achieved using

microprocessor based system and open loop controls through

Programmable Logic Controllers (PLC).

All control valves and control damper drives will be of

pneumatic type because of their fast response and ease of

maintenance.

Pneumatic controls will be provided where only local

controls are adequate. Also, turbine local panel, boiler feed

pump panel and circulating water pump panel will be provided near

the respective equipment.

Apart from the basic instrumentation, the turbine will be

provided with the following control system :

* Turbine speed control system.

* Condenser hot well level control system.

* Bently-Nevada based vibration monitoring system.

The following essential control shall be provided for the

steam generators :

* Three element based drum level control.

* Furnace draft control.

* Combustion control.

* Superheater temperature control.

* Deaerator pressure and level controls.

Fire Protection System

The fire protection system for the proposed co-generation

plant will be consisting of :

a. Hydrant system for all the areas of plant.

b. Manual high velocity water spray system for transformers and

turbine lube oil tanks.

c. Deluge system for cable galleries.

d. Portable fire extinguishers in other areas with in the

plant.

The installation and the layout of the system will confirm

to Tariff Advisory Committee (TAC) regulations.

The hydrant, water spray and the deluge system shall be

provided with a motor driven pump and a diesel engine driven

stand by pump. Two Jockey pumps will be provided to keep the

water system under pressure. The water for the fire fighting

system shall be taken from the main raw water tank designed with

the capacity required by the TAC regulations.

High, Medium and Low Pressure Steam Systems

The outlet steam from the high pressure boiler at 65.0

kg/Sq.cm and 485 Degree C will be conveyed through alloy steel

main steam piping to the turbine. Desired number of stop valves,

non return valves and isolating valves shall be suitably placed

in the piping. The piping system shall be complete with necessary

hangers and supports. The steam flow from the boiler shall be

measured by putting steam flowmeter at the individual boiler

outlet.

The medium steam system operates at 7.0 kg/Sq.cm. It starts

from the pressure reducing system(PRDS) at the crushing capacity

of 3500 TCD. The extracted steam from the high/medium pressure

boiler is sent through pressure reducing system to bring the

pressure down to 7.0 kg/Sq.cm, required for sulphur melting etc..

in the sugar manufacturing process. At the crushing capacity of

5000 TCD the medium pressure steam system starts from the

externally controlled extraction from the 12.5 MW turbine. All

the medium pressure piping shall be of carbon steel and shall be

designed with valves, specialities and suitable supports and

hangers.

The low pressure steam system at 1.5 kg/Sq.cm consists of

the exhaust from the existing turbines, exhaust from 5.0 MW

turbine, internally controlled extraction from the 12.5 MW

turbine and a low pressure steam header in the plant area. Steam

shall be tapped of from the header to meet the various

requirements. The major quantum of the steam is taken to the

sugar plant process area to meet the process requirement. All the

piping shall be of carbon steel and designed with valves,

specialities, supports and hangers.

DESCRIPTION OF ELECTRICAL SYSTEMS AND EQUIPMENT

Scheme of electrical generation for proposed co-generation

project shall consist of 1.0 No. 11.0 KV, 50 Hz, 3.0 Phase, 0.8

P.F. alternator of rating 12.5 MW and in addition to, 3.0 Nos,

3.0 MW each alternator and one of 5.0 MW rating. In expansion of

mill 3500 TCD, two alternator of 3.0 MW each, which will continue

to supply sugar plant. After meeting in house requirements due to

expansion and co-generation auxiliary requirements, plant can

export a net power of about 11.20 MW exportable power. The power

shall be stepped up 11/33 KV by a power transformer shall be

paralleled to grid via switch yard of mill. System will be

paralleled with HSEB substation at village Bhadson which is

located at a distance about 1.5 km from the plant. The Drawing

No. 5-785212-1 gives the key single line diagram for the co-

generation project.

Generator

Generator shall have nominal ratings of 12.5 MW with

generation voltage of 11 KV, 50 Hz, three phase and at a rated

power factor of 0.8 and with IP 55 enclosure. The machine shall

run at 1500 rpm and shall operate with the voltage and frequency

variation of + or - 10 % and + or - 5 % respectively. The

generator shall be complete with base frame, closed air circuit

water cooled(CAW) cooling system, brush less exciter, automatic

voltage regulator, neutral grounding cubicle, LASCVT(lighting

arrestor & surge capacitor and voltage transformer) panel, relay,

metering and control panel, instrumentation control and safety

devices and other accessories, spares and special tools that will

be required for satisfactory erection and efficient operation of

the station. The generator coupled to the steam turbine shall be

suitable in all aspects for operating in parallel with grid. The

generator shall match with the respective turbine in respect of

speed, over speed, moment of inertia, overload capacities,

coupling and other relevant requirements.

The stator and the rotor of the generator shall have class

`F`

insulation but the temperature rise shall not exceed the limits

specified for class `B` insulation. The generator shall be fitted

RTDs(min 2 per phase) for thermal protection, space heaters and

temperature indication.

The generator terminals shall be suitable for connecting to

switch gear panel through phase segregated copper/aluminium

busducts. The bus duct will be natural air cooled and air will

be run indoor. The current transformers for metering and

protection shall be provided in the busducts, in 11 KV switch

gear panels and NGR cubicles. The drawing No. 5-785212-2 gives

the protection scheme.

Excitation system & Synchronizing panels

The excitation system shall be of brush less type and shall

be provided with the following features:

* Generator voltage control

* Excitation current control

* Excitation buildup during startup and field suppression on

shutdown

* Limiter for the under excited range and delayed limiter for

overexcited range

The system shall have facility for manual as well as auto

mode operation and shall have diode protection relays to detect

failure of rotating diodes. The following minimum alarms shall be

arranged for:

* AVR fault

* AVR automatic changeover to manual

* Diode failure

Swinging/ trolley type synchronizing bracket complete with

running and incoming voltmeters, running and incoming frequency

meters, synchronoscope, synchronizing check and guard relays,

synchronizing cut off switch, lamps etc. shall be provided.

Provision for automatic synchronizing device with inputs to

governor control shall be made.

Unit control panel

The unit control panel shall comprise of control and

metering

system, synchronizing system, protective relays, start/stop

system alarm, annunciation and temperature measurement system.

The panels may be split up into control panel, metering panel

and relay panel for convenience. All meters shall be of 144 mm

square type 240 Deg scale. Each panel shall have TVM, ammeters,

voltmeters, frequency meter, power factor meter, KW, KVA and KWH

meters. Recorders shall be provided for voltage, pf, frequency

and KW. All relays shall be of static/micro processor based. The

following minimum protection will be provided for the generator:

* Overvoltage, undervoltage relay

* voltage restrained over-current relay

* Field failure relay

* Reverse power(active& reactive) relay

* Differential protective relay

* Stator earth fault relay

* Rotor earth fault relay

* DC failure trip relay

* Under/Over frequency relay

* Over load relay

* Bearing protective relay

LAVT and NGR cubicles

The LAVT cubicle shall house surge capacitor, potential

transformers (class 3P and 0.5), lighting arresters, busduct

chamber etc. The cubicle shall be complete with necessary

tappings for excitation system. The NGR cubicle shall comprise of

current

transformers(class 0.5 and 5P10), neutral isolating switch,

grounding resistor (unbreakable, corrosion proof, joint less

stainless steel grids).

11 KV Switchgear panel

The broad specification for the 11 KV switchgear panel shall

be as follows:

Rated Voltage : 11 KV, 3 Phase, 50 Hz

Maximum Voltage : 12 KV

Power frequency Voltage : 28 KV rms

Impulse frequency Voltage : 75 KV peak

System Fault level : 500 MVA

Enclosure : IP 5X

Maximum bus bar Temperature : 85 Deg. C

Operating Duty : 0-3min-co-3min-co

Control Voltage : 110 V DC

The 11 KV indoor switchgear board shall be metal clad, free

floor standing, totally enclosed, dust and vermin proof with draw

out type vacuum/SF6 circuit breakers. The board shall confirm to

IS:3427 and the breaker shall confirm to IS:13118. Each breaker

shall have distinct positions for service, test and isolation

mode and shall have independent earth switch for earthing the

cable side terminals. All panels shall have earth switch with

interlock as safety measure. The panels shall be suitable for

bottom cable entry. The switchgear shall be connected through

phase segregated busducts from the generator phase side

terminals. The panel shall be provided with one (1) incoming

feeder, Two (2) distribution feeders, one (1) outgoing power

export feeder and one (1) spare feeder.

The switchgear panel shall be complete with necessary CTs

and PTs for metering and protection which shall be of cast resin

type confirming to relevant Indian standards. The busbar in

switchgear panel shall be individually protected by busbar

protective relay. The auxiliary transformers feeders shall be

provided with the necessary relays and meters for protection

purpose.

LT Distribution System

The sugar plant load and co-generation plant load require

power supply at 415 Volt level. In the existing plant this power

is supplied by two 3.0 MW Turbo Generator set and one 5.0 MW

Turbo Generator set. The drawing No. 5-785212-1 gives the LT

distribution schematic for the complete sugar & co-generation

plants.

The system shall be designed to ensure reliable supply for

the plant loads without much disturbing the existing arrangement.

Existing bus shall be connected to a bus coupler at one end which

will couple the existing bus to transformer feeders. All feeders

and bus couplers shall be carefully interlocked to avoid improper

paralleling of different supply sources.

Interlock arrangements shall be given to ensure the

following conditions:

* The 415 Volt generators are not paralleled with transformer

supply.

* Supply from DG/ EB bus is not paralleled with other sources.

It shall be possible to operate all the sugar plant loads

even when the 415 generators are not operating. This shall be

ensured by operating the 415 Volt transformers while the 3.0 MW

sets are not in service.

The loads shall be distributed in such a way that the

transformers are not overloaded in any abnormal condition.

Parallel operation of two transformers will to tend to increase

the fault current in that bus to unmanageable level. This shall

be handled by providing series reactors (coreless type) with

those transformers or by going in for higher impedance (say 9% or

10%) transformers.

Capacitors bank shall be connected in the LT panels to

improve the power factor to about 0.95 lagging . The capacitors

shall be of all polypropylene (APP) dielectric type. The banks

may be controlled manually or by using power factor control

relays.

One feeder from 415 V DG/EB bus shall be connected to the sugar

plant LT bus for operating the colony lighting loads during off

season.

Distribution transformers and LT panels

The distribution transformers confirming to IS:2026 for

supplying the sugar plant, boiler and other loads shall be as per

the following specification.

Transformer Rating : 2 MVA

Cooling : ONAN

Ratio : 11/0.433 KV

Highest system Voltage : 12 KV

Power frequency Voltage : 28 KV rms

Impulse Withstand Voltage : 75 KV peak

Taps and Range : Off circuit tap changer

+5% to -10% insteps of

2.5 %

Voltage Vector : Dyn 11

Impedance : 6.25 % (10 % if transformers

are paralleled and no series

reactors provided)

Neutral Earthing : Solid Earthing

The distribution transformers shall be protected by over

current and earth fault relays at HV side and Restricted Earth

Fault (REF) at neutral end in addition to in built protective

devices like Buchholz relay, Magnetic Oil Level Gauge (MOG), oil

and Winding Temperature Indicators (OTI &WTI)

The LT distribution panels confirming to latest revision of

IS:8623 shall be dust & vermin proof construction sheet steel

clad totally enclosed, floor mounted, self standing type with

both front and rear access. All panels shall be of single bus bar

type with bottom cable entries.

Motors for co-generation auxiliary loads of rating less than

100 HP shall be provided with DOL feeders in MCC. Higher size

motors shall be of wound rotor type with automatic stripping

rotor starter or soft starter/ auto transformer starter depending

on starting torque requirements. DOL: motor feeders shall be

complete contactor, over load relay with single phasing

protection and switch fuse units. Motors of higher ratings shall

be protected by motor protection relays.

Switch Yard and Paralleling with Grid

The Co-generation project envisages a maximum power export

of around 11.2 MW which shall be exported to HSEB grid by

stepping up the power to 33 KV through one no 11/33 KV 20 MVA

power transformer. The 33 KV line shall be connected to HSEB

substation at village Bhadson by extending the bus in 33 KV bay.

Proposed 33 KV switch yard shall have single bus arrangement

with one power transformer with control and protection equipment

(breaker, Cts, Pts, LAs, isolators etc.) CT, PT and TVM for HSEB

measurement shall be arranged in the switch yard. Switch yard

arrangement and other requirements shall be in line with CBIP

specifications. The Drawing No. 5-785212-2 gives the protection

scheme and the Drawing No. 5-785212-3 gives the layout of the

switch yard.

The bus bars shall be formed with 3" IPS Aluminium pipe. The

minimum Phase, Earth, Section and Ground clearances in mm shall

be 915, 610,3000 and 3660 respectively. The switchyard components

will be designed to have a BIL value of 170 KV.

Feeder Protection

The feeders linking the plant substation and the EB

substation shall be protected with directional overcurrent &

earth fault relays. dF/dt relay and low forward power protective

relay shall be provided to protect the system from grid

disturbances and for inter-tripping of EB substation breaker

respectively.

Power Transformer

The transformer, with a rating of 20 MVA, 11/33 KV, Ynd 1

connected shall be complete with the fitting & accessories like

conservator, MOG, breather, Buchholz relay with contacts for

alarm and trip, pressure relief devices, thermometer pockets, OTI

& WTI, Valves, earthing terminals, cooling accessories,

bidirectional flanged rollers with locking and bolting device for

mounting on rails, air release devices, inspection cover, on Load

Tap Changer (OLTC) with remote tap changer control (RTCC) panel,

marshaling box, etc.

The transformer shall have the following minimum protection

to isolate the equipment during fault conditions:

Over current & earth fault relay

Differential relay

Restricted earth fault protection at HV side

Buchholz relay

Winding & oil temperature indicators

Oil level gauge

Over fluxing protective relay

Lightning Arrestor

lightning arresters rated 30 KV, 10 KA shall be provided at

the HV side of the transformer so as to cover the transformer in

the protection region of the lightning arrestor.

The lightning arrestor shall be heavy duty station class

type, discharge class III, confirming to IEC specification IEC-

TC-37

Arresters shall be complete with insulating Base, self

contained discharge counters and suitable milli ammeters.

Insulators and structure

Solid core type post insulators of adequate creepage

distances confirming to IS:2544 shall be provided for insulation

and support in switchyard.

The structure shall be made up of hot- dip

galvanized/reinforced concrete and designed to withstand forces

during normal conditions(wind loads and dead load of switchyard

components) and abnormal conditions( short circuit, earth quake

etc.)

Isolators

Isolators complete with earth switch, galvanized steel base

provided with holes, solid core type post insulators with

adequate creepage distance confirming to IS:2544, blades made up

of non-rusting material, operating mechanism(gang operated,

manual/ motor charging mechanism) shall confirm to IS:1818. They

shall be of center post rotating horizontal double break type and

consist of 3 poles.

The isolators shall have interlocks with circuit breaker and

earth switch.

Instrument transformers

The instrument transformers and accessories shall conform to

standards specified below :

Current Transformers : IS :2704

Potential Transformers : IS :3156

Instrument transformers shall be mounted on 33 KV class,

sealed porcelain bushings suitable for outdoor service and

upright mounting on steel structures.

Instrument transformers shall be hermetically sealed units

with- in-built provision to dissipate any excessive pressure

buildup.

Current Transformers shall be of ring type with suitable

construction at the bottom for bringing out secondary terminals.

Circuit Breaker

The circuit breaker and accessories shall be in general

conforming to IEC-56 and IS:13118. The breakers shall be of

Sulphur Hexafluoride(SF6) gas type.

The circuit breaker shall be totally restrike free under all

duty conditions and shall be capable of performing other duties

without opening resistor. Pole discrepancy shall be within

specified limits.

The SF6 gas shall be comply with IEC-376 and be suitable for

use in the switchgear under the operating conditions. The high

pressure cylinders in which the SF6 gas is shipped and stored

shall comply with requirements of relevant IEC standards.

Closing coil shall be suitable for operation at all values

of voltages between 85% and 110% of the rated voltage. Shunt trip

shall operate correctly under all operating conditions of the

circuit breaker up to the rated breaking capacity of the circuit

breaker and at all values of supply voltage between 70% and 110%

of rated voltage.

Safety Earthing System

A safety earthing system consisting of a buried mild steel

conductor earthing grid would be provided for the power plant

building, switch yard and other outlying areas. The earthing

system shall be formed to limit the grid resistance to below 1

Ohm. In the switch yard area, the touch potential and step

potential shall be limited to the safe values. The earthing

design shall be as per IEEE - 80 recommendations.

The buried earthing grid would be connected to earthing

electrodes, buried underground. Neutral point of transformer,

generator and non current carrying parts of equipment, lightning

arresters, fence etc. shall be earthed rigidly. The following

factors shall be considered for earthing system design :

* Magnitude of fault current

* Duration of fault

* Soil resistivity

* Resistivity of surface material

* Shock duration

* Material of earth conductor

* Earth mat grid geometry

Cables

All cables would be selected to carry the load current under

site conditions, with permissible voltage drop. In addition, high

voltage cables would be sized to withstand the short circuit

current. The following types of cables would be used.

Power cables for 11 KV system shall be with single

core/three core aluminium conductor, XLPE insulated, screened,

armoured and overall PVC sheathed confirming to IS :7098

The power cables of 1.1 KV grade shall be PVC insulated,

aluminium conductor, inner sheath PVC taped strip/wire armoured

with outer sheath of PVC compound conforming to IS :1554

The control cables for control/protection/indication circuit

of the various equipments shall be of 1.1 KV grade, PVC insulated

annealed high conductivity stranded copper conductor, inner

sheath PVC taped, flat/round wire armoured with outer sheath of

PVC compound conforming to IS :1554

Battery and battery charger

Common battery, battery charger and DC board unit shall be

provided for substation and power house.

Lead acid stationary battery(110V) with tubular positive

plate, pasted negative plate in hard rubber containers conforming

to IS :1651, for catering to the various DC loads in power house

and substation, complete with vent plugs, acid level indicating

floats, separators, bolts and nuts, cell insulators, intercell

connectors in dry and uncharged conditions.

The battery sizing shall be based on the basis of the

following type of loads :

Momentary load for 1 min.

Emergency load for 2 Hrs.

Continuous load for 10 Hrs.

The battery charger shall be of SCR controlled float cum

boost charging equipment housed in a free standing, floor

mounting cubicle having a degree of protection of IP 31

Lighting System

Good lighting in the substation and power house shall be

ensured to facilitate normal operation and maintenance activities

and at the same time to ensure safety of the working personnel.

Lux levels and glare index shall be as per recommendations of

IS:3646. The lighting system would comprise of normal and

emergency power supplies as described :

Normal AC lighting system

The lighting DB intended for lighting in power house and

substation area shall be supplied from the most reliable supply

source i.e. AC auxiliary supply panel.

The lighting circuit in the normal 1 phase, 240 Volt AC

lighting system would be fed through 415/ 433 Volt, 3 phase, 4

wire lighting transformers connected to the auxiliary

distribution system.

Emergency DC Lighting System

Direct current emergency lights, which shall be supplied

from battery units shall be provided at strategic points in the

power station, switchyard area and in control rooms.

Lighting Protection System

Building lighting protection system shall be provided as per

IS:2309 and Indian Electricity rules. The protection consisting

of roof conductors, air terminals and down conductors will be

provided for the power house structure. Switchyard equipment

shall be shielded against direct lighting strokes by providing

overhead earth wires. Overhead earthing wires shall be formed to

shield all substation equipments with an angle of shield of about

30 Degree.

AC Auxiliary Supply

AC supplies of single and three phase, are needed in a

substation and plant for internal use for several functions such

as:

* Illumination

* Battery charging

* Transformer tap- changer drives

* Excitation supply

* Power supplies for communication equipment

* Crane

* Breakers/ Disconnect switch, motors

* Fire protection system

* Space heaters in cubicles, generators and marshaling kiosks

* Air conditioning/ ventilation equipment

The design of AC auxiliary supply system must be such that

it ensures continuity of supply under all conditions, as far as

practicable, reliability being the basic requirement. Provision

for supply from minimum three different sources shall be

arranged.

DC Auxiliary Supply

DC auxiliary supply is required for closing and tripping of

circuit breakers, emergency lighting, control board indications,

etc, which shall be supplied by the DC batteries provided in the

substation and in the power house.

PLANT LAYOUT

The proposed co-generation Plant at PAIL’s Indri sugar mill

will be located with in the sugar mill complex. The complete co-

generation plant consisting of the boiler, the main power station

building, the auxiliary installations such as the cooling water

system, DM water system and the switch yard shall be located near

the mill. The space available, in the complex is adequate, for

the complete co-generation plant. The Drawing No. 6-785212-1

gives the locations of the various installations. The co-

generation plant is located such that there shall be no

disturbance to the sugar plant operation during the co-generation

plant construction.

At present 2500 TCD two boilers of 45.0 Kg/Sq.cm pressure,

35.0 TPH are laid out in the plant. In the first phase of

expansion of crushing capacity i.e. 3500 TCD, one more boiler of

50.0 TPH, 65.0 Kg/Sq.cm & 485 Degree C will be easily installed

next to the existing boilers. In second phase of expansion of

crushing capacity i.e. 5000 TCD, one more boiler of 65.0 Kg/Sq.cm

& 485 Degree C and 50.0 TPH capacity will be added. For

installation of this boiler adequate space is available in the

mill. Existing boilers are of semi out-door design, with just a

roof over the furnace area and the bagasse storage silo. The

boiler operating floor level is around 6.0 meters.

The airpreheater and economizer will be arranged in a single

vertical pass behind the boiler. The airheater is laid out such

that the tube replacement is done easily. The fans and cyclone

dust collectors shall be used. Adequate platforms and stair ways

as required for the operation and maintenance of the boiler shall

be provided. The boiler area will be provided with approach roads

and adequate lighting.

The boiler feed water pumps shall be located below the

boiler operating floor on the ground floor and the feed water

control station shall be located on the boiler operating floor.

A stack of 2000 mm inner diameter at the top is located near

the ID fans. Concrete paving will be provided in the boiler area

with necessary drains and trenches for cables and pipes.

The new Turbo-Generator sets of 5.0 MW & 12.5 MW capacity

and their auxiliaries are located next to the existing Turbo-

Generator sets. The Turbo-Generator operating floor shall be at

about 6.0 meter elevation. The building superstructure will be of

structural steel framing with brick clading and R.C.C. floor

slabs. The building roof will be of pre cast concrete panels on

steel trusses. The turbine and generator foundation will be of

reinforced concrete frame isolated from the building foundation

and the super structure. The condenser of the 12.5 MW Turbo-

Generator with its ejector system and the condensate extraction

pump and oil system console for the Turbo-Generator is located on

the ground floor within the building.

One 20.0 tonne capacity electric overhead traveling capable

of serving the entire length of the building is provided in the

Turbo-Generator building. Three cranes with hook capacity of 5.0

tonne each are also provided for cane unloading. An opening is

provided on the operating floor that serves to take out the

Turbo-Generator components for maintenance. The cables and the

bus duct will run

below the switchgear room or control room as the case maybe.

Similarly the inlet, extraction and the exhaust steam piping will

be run below the operating floor.

The raw water storage tank shall be located next to the

existing boilers, close to the existing tanks. The raw water

pumps shall also be located near the tanks. The DM water plant

shall also be located at the same place. Cooling water pumps

shall also be located in the power house.

The bagasse storage yard will remain in its present location

except that the conveyor from the mill house will be further

extended. Another conveyor elevator traveling in the opposite

direction will feed the bagasse reclaimed from the storage yard

on to the conveyor running in front of the boiler.

The ash handling system consisting of water impounded

scraper conveyors, screw conveyors and belt conveyors will

collect the ash from the boiler furnace hoopers, airpreheater

hoopers, cyclone dust collector hoopers and feed the ash into the

concrete silo located near the new stack. The actual location of

the conveyors and the number of conveyors shall have to be

decided during the detailed engineering of the project.

The distribution transformers are located in the plant

depending on the load centers. The 11 KV switch yard is located

near the power house building. The layout of the switch yard is

given in the Drawing No. 5-785212-3.

OPERATION AND MAINTENANCE REQUIREMENTS

OPERATION REQUIREMENTS

The operation of the plant starts with the commissioning. In

broad terms commissioning can be defined as setting the plant to

work safely and on programme. It is necessary to ensure that all

equipment are completely erected before operations begin.

Although this may be considered difficult, the other extreme of

operating a plant with insufficient instrumentation, controls and

alarms is dangerous. Although some compromise can be made with

regard to plant completion, the commissioning procedures should

never compromise personnel and the system safety.

A proper checklist procedure must be draw up, which shall

include all the section of plant and shall take into account, the

contractual responsibilities, the technological relationship

between the various sections, pre-commissioning cleaning

requirements. The checklist procedure helps in the following:

* To ensure that the necessary checks are carried out on each

item of the plant before it is put into commercial service.

* To indicate a contractor's commissioning requirements from

the client or from other contractors.

* To ensure that energy is supplied to an equipment or a plant

when it is safe to do so.

* To facilitate the recording of the progress on the various

commissioning activities.

* To provide a basis for the plant history.

The operation of the cogenerating unit interconnected to the

grid is an activity that must be properly coordinated, with in

the plant as well as with the electricity board's sub-station to

which the plant feeds power. Operation in parallel with the grid

eventually makes the co-generation plant a part of the HSEB's

utility system, and hence the co-generation plant must assume

some of the same responsibilities of HSEB. With this, the HSEB's

local despatch center will need to monitor the incoming power

from the cogenerating plant on a continuous basis.

The operation of a modern high pressure and high temperature

unit demands closely controlled operating conditions. The unit

starts-ups, shut-down and even load variations must strictly

follow the carefully laid down procedures given in the operation

manuals. Generally, the plant shall be sufficiently instrumented

to permit close checks on such operating parameters as boiler

tube and drum metal temperatures, furnace gas temperatures,

turbine expansions, casing metal temperatures, condenser vacuum

etc.

An important feature of the modern power generating plant is

the automatic safety lock-out devices. While sufficient thought

goes into it at the design stage, it remains the responsibility

of the operating staff to ensure that the safety devices are set

correctly and kept in operation.

While safety of the plant and personnel is the foremost

importance in the operation, the efficient operation of the plant

can not be ignored. While operating, it is important to check the

essential parameters of the plant and equipment to ensure that

the plant performance is at the optimum level. Any variations in

the operating parameters or any deviations from normal

performance of the equipment or plant shall have to be analyzed

immediately to diagnose the problem and to take remedial measures

to bring back the plant and equipment to its original parameters.

The detailed treatise on the operation of the power plant is

beyond the scope of this report. However, two important areas are

highlighted below.

Water chemistry

With the rapid increase in the operating levels of the steam

temperatures and pressures of the modern boilers, ensuring good

quality of water has assumed greater importance.

Pressure at/around 60 kg/Sq.cm is almost a threshold limit

for water quality and above this pressure additional precautions

are to be taken to ensure that the quality of the feed water

given to the boiler is maintained at acceptable limits. This

aspect deserves much greater attention specifically in a sugar

plant where the chances of contamination of the condensate by

sugar juice is a likelihood. The system envisaged provides for

the direct induction of the safe steam exhaust condensate into

the feed water system but restricts the vapor condensate

induction depending on its quality. Another area of concern could

be the condenser leakage where the condensate gets contaminated

by the cooling water. A routine check up of the feed water

quality during the startup of the plant and also periodic check-

ups result in the elimination of any serious problem due to water

quality.

Instrumentation

The modern day power generating system like the one

envisaged for the specific co-generation plant can not be

effectively operated without proper instrumentation and control

system. An effectively designed instrumentation and control

system performs following functions :

* Provides operators with the indication or record of the

instantaneous averaged or integrated value or condition of

the various operating parameters such as temperatures,

pressures, flows, levels, position of switches, currents,

voltages, power etc..

* It also provides at convenient locations either local,

remote or automatic control system to control the above

operating parameters and gives alarms and even ensures

automatic trip outs, when operating parameters reach beyond

the normal range into the unsafe or undesirable range.

Instrumentation is increasingly taking over many functions

of the operator. Its response to changing and transient

conditions, its ability to anticipate, detect and discriminate

faulty conditions and act accordingly is quicker and for more

accurate if well designed. With the ability of the

microprocessor based systems to include data acquisition and

processing capabilities, the system's ability, to log and process

periodically the plant data, is also far superior and permits

more timely corrective action. Presently some of the

responsibilities of the operation section are taken over by good

instrumentation. The most difficult thing to be encountered in

the initial stages of plant operation is the necessity to develop

in the operation staff a faith in the instrumentation. Many times

the operators first response to a meter, reading too high or too

low, is to disbelieve it on the ground that it may be reading

incorrectly. If instruments are not checked and calibrated

frequently an operator will delay taking corrective actions. This

problem could be solved by:

* Frequent checking and calibration of instruments

* Developing in the operator a habit of cross checking

instrument indications with each other to determine whether

the instrument is faulty or there is an abnormal operating

condition; and

* Developing in the operator a habit of analyzing indicated

data to determine accurately what could be wrong.

MAINTENANCE REQUIREMENTS

The main objectives of the maintenance section are to keep

the plant running reliably and efficiently as long as possible.

Reliability is impaired when a plant is thrown to forced and

unforeseen outages. This aspect assumes greater significance in a

co-generating plant exporting power to the SEB's grid under

contractual commitments. It is imperative that any planned

maintenance is under taken with closer co- ordination with HSEB.

Efficient operation implies close control not only over the

cost of production but also over the cost of maintenance. There

are two components in maintenance cost, one is the direct cost of

maintenance i.e. the material and labor and the other is the cost

of production loss.

There are two categories of maintenance work. one is the

irksome breakdown maintenance which is expensive. Much as it is

desirable to avoid or minimize this, its existence must be

accepted. Secondly, it is the preventive maintenance with proper

planning and execution of plant and equipment over hauls. This

maintenance activity should be clearly planned with regard to the

availability of material and labor. It is also essential to

develop proper inspection procedures with non-destructive testing

methods. Such inspections by trained personnel reveal defects

not necessarily detected by mere visual inspection.

The following help in reducing the breakdown maintenance and

also help in planning for preventive maintenance.

* Careful logging of operation data and periodically

processing it to determine abnormal or slowly deteriorating

conditions.

* Careful control and supervision of operating conditions.

Wide and rapid variations in load and frequency conditions

do contribute to increased maintenance particularly on the

high temperature and high pressure units. The turbine

throttle steam pressure and temperature conditions must also be

kept steady on the rated value.

* Regulate routine maintenance work such as keeping equipment

clean, cleaning heat exchanger, filters, effectively

executed lubrication programme, effective operating supervision

over bearings, commutator or slip ring brushes, gland and

flange leakages.

* Correct operating procedures.

* Frequent testing of plant equipment to determine internal

condition of equipment such as plant cycle efficiency

tests, enthalpy drop tests, heat exchanger and pump

performance tests, generator and turbine shaft vibration

tests, turbine lube oil testing, etc.

* Close coordination with the manufacturers to effect

improvements in plant layouts and design, use of better

material, introduction of such facilities as cathodic

protection, use of better protective paints etc.

It is extremely important that proper records are maintained

not merely for the maintenance work done but also of the material

used and actual man hours spent. Some sort of a card system

shall have to be introduced to keep records that are most useful

in future planning of outages and providing for effective

control.

Another important requirement of a good maintenance program

is to ensure that spares are ordered in time, and good stocks of

the frequently required spares are maintained.

MANPOWER AND TRAINING

Rapid growth of industrial activity in the country in

general, and in particular in the power generation industry, has

brought about an acute shortage of skilled and trained manpower.

To run the co-generation plant skilled and trained manpower is

essential. A well defined futuristic plan is required to acquire

such qualified & trained work force at the time of commissioning.

The staffing and the organizational requirements can not be

decided on the operating experience with the existing sugar plant

boilers and Turbo-Generator set, but should be done considering

the specific requirements of the proposed co-generation plant at

the crushing capacity of 5000 TCD.

The requirement of the personnel required must be based on

the rational assessment of the following factors :

* The nature of the plant and machinery i.e. boilers like

bagasse fired, dumping/ traveling grate, etc. Turbo-

Generator

sets like condensing, back pressure, fuel and ash handling

plant, cooling water system, DM plant, size of switch yard

etc.

* Socio-economic conditions.

* Availability of personnel with the right back ground and

experience.

* Company's policy regarding, labor and contract labor.

Once the staff is finalized and agreed, a suitable training

scheme shall be programmed and implemented. The objective of the

training programme must be to equip each individual to carry out

his particular function with skill and confidence. The training

programme shall be based on the classification of the main

functions as operation and maintenance and with in this main

classification, designed to cater to engineers, supervisors,

skilled workers etc..

OPERATION AND MAINTENANCE ORGANIZATION

The Drawing No. 8-785212-1 gives the operation and

maintenance organization chart for the PAIL’s co-generation

plant. The organization proposed assumes that the co-generation

plant will be mostly independent from the sugar plant, with the

Chief Engineer Power Plant, holding the full charge of the co-

generation power plant, reporting directly to the Managing

Director. The staffing recommended here takes care of only the

new plant and machinery to be added to the co-generation plant.

There could be some overlapping of functions between the staff of

the existing boilers and the Turbo-Generator sets and the staff

proposed for the new equipment. Such areas should be identified

and the staffing shall be suitably altered.

The organization under the Chief Engineer( Power Plant)

[CE/(PP)], shall be divided into operation and maintenance

sections each headed by a Deputy Chief Engineer, operation

[DCE(O)] and Deputy Chief Engineer maintenance [DCE(M)]. There is

a separate efficiency cell with an engineer directly reporting to

the CE/(PP).

The shift engineers, one in each shift and one reliever and

the chemist working in the general shift report to the DCE(O).

The electrical operators , boiler operators and the Turbo-

Generator set operators coming in shifts, and each one with a

reliever and shift helpers report to the shift engineer. In

addition to the helpers the boiler operators are assisted by the

boiler auxiliary operators.

The maintenance organization of the co-generation plant

works under the DCE(M). The maintenance engineers for the

mechanical, electrical and instrumentation report to the

DCE(M).The supervisor civil maintenance also reports to the

DCE(M) and takes care of all civil maintenance works. Each of the

maintenance engineer is assisted by supervisors and technicians.

The maintenance staff shall be generally rotated in the general

shift, but will be available on call to attend to any breakdown

even in other shifts.

The efficiency cell is an important section which serves

both the operating and maintenance sections by providing useful

feedback to the operating staff and valuable information to the

maintenance staff on the performance and the healthiness of the

various equipment. The major responsibilities of this cell are:

* To establish from the design and plant acceptance test data,

as well as after overhaul test data norms against which day-

to-day performance can be checked.

* To analyze the daily plant performance data to detect

departures from normal expected performance and to keep

track of trends indicating gradual deterioration.

* To carry out frequent tests on the plant and individual

equipment to determine their internal conditions to help

maintenance scheduling.

* To investigate special problems as and when they arise.

The analysis and the data provided by the efficiency cell

enables plant operation and maintenance personnel to take

suitable corrective actions promptly and with proper priorities.

TRAINING

The major objectives of the operational training shall be to

acquaint the operators of the following:

* The nature, purpose and limitations of all the plant and

equipment.

* The detailed operating instructions on each section and

equipment of the plant

* The normal start up and shutdown programme for the unit.

* The emergency procedures.

The basis for the training shall be Plant Particulars Book,

which is compiled from the manufacturers's instructions, the

contract demand and drawings. In addition, the information

gathered from the visits to the other operating plants and to the

manufacturers work shall also be included in the book.

Supervision and coordination of the training programme requires

full times attention of a senior executive of the plant, and also

the consultant's assistance may be taken. The training programme

shall include lectures, expositions by experienced plant

operators and maintenance personnel, informal discussions and

visits to operating plants and manufacturers's works.

The maintenance training programme should be based on the

requirements of the individual maintenance functions, like

mechanical, electrical, instrumentation etc.. The engineers and

technicians should be sent to the manufacturers works to witness

the production and be associated with the erection of plant and

equipment.

ENVIRONMENT PROTECTION AND WASTE MANAGEMENT

The impact of any project, specifically the thermal based

power generating project, on the environment, should be studied

in detail. A thermal power generating facility generates both air

and water pollutants and adequate measures should be built into

the project proposal to contain these pollutants with in

acceptable limits. One major redeeming factor about sugar plant's

bagasse based co-generation, is that the dust or the green house

gases released into the atmosphere are no more than what would

have been produced by alternative methods of bagasse disposal

(burning bagasse inefficiently in the boilers, or letting it

decompose) practiced presently in the sugar plants. Also the co-

generating plant, feeding surplus power to the grid, indirectly

prevents a prorata quantum of pollutants, being let into the

environs from the utility plant, from where otherwise the equal

quantum of power would have been generated. The cogenerating

plants thus being indirectly environment friendly deserve

encouragement.

The effluents generated in the proposed co-generation plant

can be classified as under:

* Particulate matter and gases due to combustion of bagasse in

the steam generator.

* Dry fly ash and furnace bottom ash.

* Pollution in liquid form such as,

- Effluent from water treatment plant

- Chlorine in cooling water

- Boiler blow down

- Sewage from various building in the plant

Particulate Matter And Gases

The air pollution elements from the proposed unit are,

- Dust particulate from fly ash in flue gas

- Nitrogen oxide in flue gas

- Sulphur-di-oxide in flue gas

The pollution control regulations limit the particulate

matter emission from bagasse fired steam generators as 350 mg/N

cum. The height of the stack which disburses the pollutants have

been fixed as 40 meters based on the guidelines given by the

pollution control regulations.

The sulphur is very minimal in the fuel and sulphur-di-oxide

emission will be negligible. The temperatures encountered in the

steam generator while burning, high moisture bagasse are low

enough not to produce nitrogen-oxides. Moreover, the tender

specification for steam generator stipulates over fire air system

with staged combustion which will also ensure reduction in

nitrogen-oxide emission. Hence no separate measures are taken to

contain the sulphur and nitrogen oxide pollutants.

Water Pollution

Hydrochloric acid and caustic soda will be used as

regenerants in the proposed water treatment plant. The acid and

alkali effluent generated during the regeneration process of the

ion -exchanger would be drained into a epoxy lined under ground

neutralizing pit. Generally these effluents are self

neutralizing. However provisions will be made such that the

effluents will be neutralized by addition of either acid or

alkali to achieve the required pH of about 7.0. The effluent will

then be pumped into the effluent treatment ponds which is part

of sugar plant effluent disposal area.

Chlorine In Cooling Water

In the condenser cooling water, residual chlorine of about

0.2 ppm is maintained at the condenser outlet. This value would

not result in any chemical pollution of water and also meets the

national standards for the liquid effluent.

Steam Generator Blow Down

The salient characteristics of blow down water from the

point of view of pollution are, the pH and temperature of water

since suspended solids are negligible. The pH would be in the

range of 9.5 to 10.3 and the temperature of blow down water will

be 100 Degree C. The quantity of about 2.0 Tonne/ Hr of blow down

is very small and hence, it is proposed to put the blow down into

the trench and leave it in the effluent ponds.

Sewage From Various Buildings In The Plant

Sewage from various building in the power plant area will be

conveyed through separate drains to the septic tank. The effluent

from the septic tank will be disposed in soil by providing

disposing trenches. There will be no ground pollution because of

leaching due to this. Sludge will be removed occasionally and

disposed off as land fill at suitable places.

Thermal Pollution

A close circuit cooling water system with cooling towers has

been proposed. This eliminates the letting out of high

temperature water into the canals and prevents thermal pollution.

Below down from the cooling tower will be trenched out and

ultimately conveyed to the effluent ponds. Hence, there is no

separate pollution on account of blow down from cooling water

system.

Monitoring Of Effluents

The characteristics of the effluents from the proposed plant will

be maintained so as to meet the requirements of State Pollution

Control Board and the minimum national standards for effluent

from Thermal power plants. Air quality monitoring will also be

under taken to ensure that the dust pollution level is within

limits.

Noise Pollution

The rotating equipment in the co-generation plant will be

designed to operate at a total noise level of not exceeding 85 to

90 db(A) as per the requirement of Occupational Safety and Health

Administration (OSHA) Standards. The rotating equipment are

provided with silencers wherever required to meet the noise

pollution. As per OSHA protection from noise is required when

sound levels exceed those given in the table:

Permissible Noise Levels

Exposure Duration/Day Sound level db(A)

8 90

6 92

4 95

3 97

2 100

1 102

PROJECT IMPLEMENTATION AND SCHEDULE

The most essential aspect regarding the implementation of

this Co-generation project is that the project construction,

spanning more than Twelve(12) months, shall affect neither the

sugar plant operation nor curtail the crushing capacity of the

plant. This aspect is very important since, at least one full

crushing season will fall in the Co-generation project

construction period. A good planning, scheduling and monitoring

program is imperative to complete the project on time and without

cost overruns.

The project Zero Date starts once the management gives the

`Go Ahead’ approval after the project is approved by the Ministry

of Non Conventional Energy Sources(MNES) and the Financial

Institution has indicated its willingness to fund the project.

The sugar plant should, as the first step, employ a detailed

engineering consultant, to entrust them with the complete

responsibility, for the Project Engineering and Design of the Co-

generation plant, and to help the factory in the procurement,

project management and the construction and commissioning

supervision of the project.

A multi disciplinary project like the Co-generation project

needs the services of an experienced consultancy organization,

since most of the sugar plants do neither have the manpower nor

the experience to handle the design and the execution of such a

project. The design phase of the project should start much early,

since the system design and the first stage layout should be

completed before the contract design.

The nature of the project calls for the division of the

project into recognizably discrete plant areas with specific

terminal points that can stand alone for engineering and contract

purposes. An appropriate contract strategy involves, the decision

on the number and the type of contracts to be let, vendor

evaluation, formulation of contract agreement defining respective

obligations, the basis for discharging them and remedies for

default.

The specifications for major equipment like boiler, Tubo-

Generator set etc.. The technical information on which is

essential to the development of the plant design and in

particular to the civil design, shall be drawn up at an early

stage of the project. Program of design information submission,

from the mechanical and electrical contractors, that satisfies

the over all project shall be drawn up. The most important among

such information are the location of the individual plants, floor

loadings, support requirements etc.. Which are required for the

civil design.

Since the project execution calls for closer co-ordination

among the contractors, consultants and the sugar plant proper

contract co-ordination and monitoring procedures shall be

formulated. Detailed bar charts or networks shall be made to plan

and monitor the project progress. Contract drawings and documents

requiring approval from statutory authorities like The Chief

Inspector of boilers, Factory Inspector, Chief Electrical

Inspector, Pollution control Board etc. shall be clearly

identified and scheduled so that the procedural formalities do

not affect the project progress.

The successful and timely implementation of the project and

the avoidance of overspending and frustration depends on the

performance of the project team. This project team shall consists

of the representatives from both the consultants and the sugar

plant.

The responsibilities of this project team shall be :

* Plan and program all the work and resources required for the

project completion.

* Design the plant and the plant support systems.

* Place contracts with the manufacturers and contractors to

procure plant and machinery and services at the right time,

of the right quality and at an economical price.

* Organize the construction and commissioning of the plant by

progressively integrating individual systems.

* Monitor and control the project progress with regular

interactions and co-ordination.

* Ensure cost control to contain the project cost within the

planned budget.

Since the co-generation project is coming up within the

sugar plant complex, in the operating area of the sugar plant, it

is important that the area identified for the co-generation plant

is cleared for the early start of the civil work. The soil

investigation and site grading shall be proceed without any

hindrance. The site development shall include the laying of the

approach road, identifying or constructing adequate storage

space, providing lighting in the work area etc.

Since the plant location is susceptible to monsoon rains,

all the major civil work shall have to be planned in the non-

monsoon period between November to May. It is essential that the

before zero date of the project all the clearances from

government bodies like the pollution control board, electricity

board etc. are obtained. Above all the sugar plant management

should make adequate uninterrupted fund flow available for the

execution of the project.

This is the critical phase of the project where work

progresses in almost all the fronts. The erection and

commissioning phase of all the contracts proceed simultaneously

and it is important to ensure that the various contracts have

adequate facilities and are established on the site in time to

meet their programmed commitments. Adequate power and water shall

be made available for the construction.

The construction manager from the sugar plant side takes the

over all responsibility of the site, assisted by the resident

site manager from the consultant side. The construction team`s

work is to continuously monitor the site progress against the

agreed programme, and to initiate whatever corrective action is

necessary to maintain satisfactory site progress. During the

execution stage of the project at site, quite a few of the

various contracts progressing simultaneously are inter-related,

and hence, the delay in the activities of one contractor will

invariably affect the progress of the other contractors and

ultimately the project progress. This aspect emphasizes the

importance of progress review, project monitoring and timely

remedial measures, for the smooth and “with in the budget”

execution of the project.

Certain basic responsibilities of the construction

management are :

* The contractor shall be encouraged to give the earliest

possible warning of actual or potential difficulties.

* Ensured that the senior management in the contractors

organization are made aware of the serious problems at an

early date.

* Provide a focus for early discussion of any potential

problem and possible remedial measures, while clearly

maintaining the contractors responsibility for recovering

delays.

* Help to foster a climate among all concerned that no

extension of site deliveries and erection schedule are

allowable.

A fortnightly progress review meeting is held with each

contractor, while formal reports are tabled, giving an agreed

progress statement. From these agreed progress statement, an

accurate prediction of the state of the project is available

which helps the construction team to adjust, if necessary, the

activities of the particular contractor and also the activities

of any affected contractor.

One of the major activities in the co-generation project

implementation is the work related to the power evacuation system

inter connecting the co-generation plant and Indri’s sub-station.

This activity should be initiated at the very early stage of the

contract so that the transmission lines and the interconnection

at the sub station are made ready well before the commissioning

of the project.

The commissioning phase in a project is the one where the

design, manufacturing, erection and quality assurance expertise

are put to test. The commissioning team for each plant will

consist of representative from the contractor, consultant, and

the sugar plant. It is essential to associate the staff

identified to operate the plant in the commissioning stage

itself.

When construction work is complete, the check list, designed

to ensure that the plant has been properly installed and

appropriate safety measures have been taken, are gone through,

and all the documentation pertaining to the statutory inspection

and approvals are presented, the commissioning team shall take

over. The commissioning team will follow scrupulously the

commissioning and operating instructions laid down by the

plant/equipment, manufacturer/supplier to prove that the

plant/equipment is in every respect fit for service. The plant

shall be subjected to a performance test, after the stipulated

trial operation and the reliability run. After the successful

completion of the performance test the plant will be taken by the

sugar plant.

The over all project schedule envisages the project

commissioning in twenty(20) months from the zero date of the

project. In the schedule the project is divided into three major

categories like civil, mechanical and electrical and these

categories are then sub-divided into major identifiable

contracts.

For each of the contract, the schedule identifies the

following applicable activities :

* Basic study

* Tendering

* Receipt of offers, evaluation, discussion and purchase order

placement.

* Manufacturing and deliveries.

* Erection and other work at site.

* Commissioning, trial run and testing.

Once the project gets started, it is essential that a

detailed bar or net work chart is prepared incorporating all the

contracts and the activities so that the planning and the

monitoring is effectively done.

PROJECT COST ESTIMATE

The cost of co-generation project is estimated, on the basis

of, the prevailing prices and rates as on February 1996, and the

estimation is for, the installation of power generation and

services facilities described in the previous sections. The

estimate is derived by dividing total quantum of work into two

categories. The category I, is that for which the cost is

calculated based on the current information available on the

prices of plant and equipment and the rates of various works. The

category II, that consisting of major equipment, for which

budgetary offer have been made for any escalation in these

estimates, since the project is expected to be implemented

shortly.

The cost of the co-generation plant covers all the cost

associated with the construction of the plant, and includes the

civil construction cost, cost of equipment for power generation,

cost of auxiliaries and utilities. The total project cost is

arrived at by adding to this cost, the pre-operative expenses

inclusive of project design and engineering, start-up and

training expenses, interest during construction and the margin

money to meet the working capital requirements.

Land and Site Development

This co-generation project at PAIL is coming up as a part of

the sugar plant and adequate land is available within the sugar

plant premises for setting up the co-generation project. Hence no

cost towards the acquisition of land is considered in the project

cost estimate.

Civil and Structural

The civil work includes the earth work and concrete work for

the plant building, equipment foundations, tanks, cooling tower

basin, ash silo, etc.. The cost of laying of in plant roads,

fencing drains and sewers, landscaping is also included as part

of civil cost. The structural steel work for the Turbo-Generator

set building is also included under the heading ‘Civil Cost’. No

pilling has been envisaged for the buildings as well as for

equipment foundations and only open foundations are considered.

The following rates covering the material and construction cost

are considered in the estimation civil works cost.

Reinforced Cement Concrete : Rs.2500/Cu.M

Reinforcement bars : Rs.19,000/tonne

Structural steel : Rs.20,000/tonne

The civil work quantities and the cost of civil works given

are only estimates and will have to be suitably modified after

the equipment supply is finalized and adequate data regarding the

loading and dimensions of equipment are available from the

manufacturers and suppliers during the engineering stage, and

also on the actual soil conditions encountered at different

stages of construction.

The total civil cost of civil works including the items

specified above is estimated as Rs.150.00 Lakhs.

Mechanical and Electrical Works

The cost of the steam generator & its auxiliaries and Turbo-

Generator set & their auxiliaries are based on the budgetary

offers received from a few of the Indian suppliers. It may be

found that the prices quoted by the suppliers are widely varying

with some of the prices quoted deviating very much off from

realistic prices. In the estimation for the project, the cost

which is closer to the price of some of the recently finalized

orders have been considered.

The cost of cooling tower, DM water plant, cooling water

pumps, the turbine hall crane, transformers and switch yard

equipment are based on the budgetary offers from Indian

suppliers.

All other mechanical and electrical equipment costs are

based either on the cost particulars available for similar

equipment or have been estimated.

The cost of transmission lines for evacuating the power from

the Co-generation plant to the nearby HSEBs substation i.e. Indri

substation at a distance of 1.5 km from the sugar plant is

estimates to be Rs.43 Lakhs.

Cost towards plant erection, testing and commissioning have

been included in the equipment cost indicated. Also the costs are

estimated to be inclusive of taxes and duties, freight and

insurance.

The cost of two years operation spares is estimated to be

three(3) percent of the equipment cost.

A provision of Rs. 48.0 Lakhs have been made for the pre-

operative expenses covering establishment and administration

during construction, traveling, design and engineering charges,

training of operation and maintenance personnel and start-up

expenses.

A provision of 5% of the costs of civil and structural work,

mechanical and electrical equipment and other costs has been made

towards contingencies. This contingency provision works out to

212.00 Lakhs.

The Table A gives the Project Cost without the Interest

During Construction (IDC) and the Working Capital Margin.

Table-A

Project cost (without IDC & WCM)

S.No Description Cost Rupees in Lakhs

-------------------------------------------------------1. Civil Works 150.00

2. Mechanical Works 1662.00

3. Electrical Works 200.00________

4. Total Works Cost 2012.00

5. Spares@ 3% of 2.& 3. 56.0

6. Preoperative Expenses 48.00________

7. Sub Total 2116.00

8. Contingency 5% of 7.0 212.00--------

9. Project Cost 2328.00(Without IDC and WCM)

-------------------------------------------------------

Subsidy From Government of India

The Ministry of Non-Conventional Energy Sources, in the

Government of India has announced a subsidy scheme for bagasse

based demonstration Co-generation Plants. The Co-generation plant

being proposed for PAIL fulfills all norms set by MNES to become

eligible for the subsidy. The subsidy amount shall be 15% of the

cost of the equipment identified and listed by MNES or Rs.35

Lakhs for every MW of exportable power or 300 Lakhs whichever is

lowest.

The cost of equipment identified and listed MNES for the

computation of subsidy is given in Table B. The cost figures

furnished are inclusive of the cost of supply, erection and

commissioning and the taxes & duties.

The exportable power from the co-generation project, as

indicated in the power balance is 11.20 MW. The eligible subsidy

for the project under this clause is Rs. 392.00 Lakhs.

The eligible subsidy (Rs. In Lakhs) for the PAIL`s co-

generation project shall be as given below.

15% cost of equipment cost as per Table B : 281.32

Eligible subsidy as per power balance : 392.00

The maximum Eligible Subsidy : 300.00

Table BCost Estimate For The Equipment Listed By MNES

S.No. Description of Equipment Estimated Cost(Rs in Lakhs)

1. Bagasse fired boiler with accessories such as feed pumps,deaerator, heat recovery equipment, economiser, airpreheater, chimney,ID&FD 484.00

2. Turbo-Generator with electricalcontrols and related mechanicalequipment 1000.00

3. Condenser & cooling water system 60.00

4. Water treatment/conditioning plant 13.00

5. Steam piping necessary for (1)&(2),up to the exhaust of Turbo-Generator 2.50

6. Bagasse handling equipment for(1) 34.00

7. Grid interconnection schemeincluding equipments 151.00

8. Civil works for above equipment 131.00----------1875.50

Interest During Construction (IDC)

The interest during the construction period is capitalized

to calculate the total project cost. The rate of interest

considered is 17.5 %, and is calculated for the project cost of

Rs.2328.00 Lakhs less the subsidy of 281.32 Lakhs from the

Government of India and the equity of Rs.2046.68 Lakhs from the

sugar mill. While calculating the IDC, it is considered that the

drawl of long term loans from the financial institutions will

commence only after the equity capital is utilized. The Project

Construction Period is 18 Months. Also the IDC is calculated for

the phased capital expenditure given in Table C. The calculated

figures of IDC is given in Table D. The period and the bracketed

figures in Tables C& D indicate the half years in the year.

Table C Phasing of Capital Expenditure And Mode of Financing

(All figures Rupees in Lakhs)

Year/ Expenditure Subsidy Equity Long Term(Period) during period Component Component Loan-------------------------------------------------------1/(1) 332.00 38.32 293.68 0.001/(2) 998.00 121.50 729.66 146.842/(1) 998.00 121.50 0.00 876.50 -------------------------------------------------------Total 2328.00 281.32 1023.34 1023.34-------------------------------------------------------

Working Capital Margin

The working capital for the Co-generation plant shall meet

the requirements of the salaries and wages, procurement of

chemicals and start up fuel, maintenance expenses and overheads

for a period of two months in the season. Since there is no

direct expense for the procurement of bagasse, which is the main

fuel, for the boilers no provision on this account is required.

For the PAIL’s Co-generation project a working capital provision

of 38.60 Lakhs has been made based on the above, and the entire

money is capitalized included in the project cost.

Table D Calculation of Interest During Construction

(All figures Rupees in Lakhs)

Year Long Term IDC Till(Period) Loan From end of

Institutions Period-------------------------------------------------------1/(1) 0.00 0.00 1/(2) 146.84 25.70 2/(1) 876.50 76.70

---------------------------------------- Total 1023.34 102.40

-----------------------------------------------------------------------------------------------

Total project cost

Rs. In Lakhs

_____________

Project Cost Without IDC &WCM 2328.00

(Refer Table A)

Interest During Construction 102.40

Working Capital Margin 38.60

----------

Total Project Cost 2469.00

----------

FINANCIAL ANALYSIS

The financial analysis gives the details of the

operation and profitability, the cost of generation of power,

cash flow, for a period of ten (10) years from the commissioning

of the project. The analysis also gives the internal rate of

return for the project, debt service coverage ratio and the rate

of return on the equity. The sensitivity analysis included in the

financial analysis gives the scenario with the variation in the

electricity unit price and the fuel price.

The financial viability of the project is based out on

certain assumptions. The Table A of this chapter and subsequent

pages of this chapter gives the Basis for the Financial Analysis

and the assumptions.

Mode of Financing

The total project cost without the interest during

construction and working capital margin is estimated to be

Rs.2328.00 Lakhs as given in the Table A of previous chapter.

Since the project fulfills all the norms set by the Ministry of

Non-Conventional Energy Sources of Government of India, it is

expected that the project will get the eligible subsidy of

Rs.281.32 Lakhs.

The difference between the project cost of Rs.2328.00 Lakhs

and subsidy of Rs.281.32 Lakhs, is equal to the Rs.2046.68 Lakhs,

Rs. 1023.34 Lakhs will be brought in as equity for project.

Balance Rs. 1023.34 Lakhs will be mobilized as long term loans

from financial institutions.

Based on the above pattern of investment the interest during

construction is calculated to be Rs.102.40 Lakhs as given in the

Table D of previous chapter. This IDC as well as provision for

working capital margin Rs. 38.60 Lakhs will be taken as long

term loans and capitalized.

The total long term loans including the IDC and the working

capital margin works out to be Rs.1164.34 Lakhs. It is assumed

that this loan amount will be repaid in Six (6) equal

installments and there will be an initial moratorium of Two(2)

years on the loan repayment. An interest rate of 17.5 % is

considered on the term loans, and it is assumed that the interest

payment and the loan repayment will be half yearly, and the Table

B of this chapter gives the details.

The project envisages no foreign exchange out flow from

PAIL, since all the equipment are assumed to be bought from

indigenous suppliers.

Plant Operation

PAIL’s Co-generation plant is planned to be operated during

cane crushing season, (on an average 180 days in a year) with the

bagasse generated in the sugar plant.

Saleable Electricity

The Gross generation of power in the plant will be 20.30 MW.

Out of this 8.21 MW will be consumed by sugar plant and another

0.89 MW will be consumed by the Co-generation plant auxiliaries.

This leaves a surplus power of 11.20 MW for export.

This exportable power, with a plant capacity utilization of

90% and with 2.0 % for wheeling and banking , gives a seasonal

energy sales of 39.92 Million KWh of electricity over the season

period of 180 days

The power generated could be sold to HSEB or to any third

party, and HSEB may permit third party sales through their grid.

In the analysis wheeling and banking charge of 2.0 % of the

power exported, applicable for sales to HSEB, is considered.

Unit Price of Electricity

The Ministry of Non-Conventional Energy Sources, have

recommended a price of Rs. 2.25 per KWh. However many SEB`s have

not yet implemented this recommendation. It is however expected

that HSEB will also follow this recommendation.

Barter Arrangement For Fuel

The co-generation project will run only with the bagasse and

the sugar plant needs of power and steam for its operation. For

the PAIL`s co-generation plant it is assumed that the sugar plant

will supply all the steam and the power require for the sugar

plant. Since the sugar plant generally saves bagasse after

meeting its power and steam requirements, it was decided to

extent the barter arrangement only to extent of power and steam

require by the sugar plant. The surplus bagasse, defined as the

bagasse that could have been saved if the sugar plant had just

produced the power and steam for its requirements, is charged to

the co-generation plant at the market rate of Rs. 250/- per ton.

The surplus bagasse quantum works out to 59400 Tonne per season.

Operation And Maintenance Cost

The operation and maintenance cost for the project includes

the salaries and wages for the operating and maintenance staff,

repairs and maintenance and general plant expenses towards the

operation of the plant. An operation and maintenance expense of

2.5% of the total work cost is considered in the financial

analysis.

Administration & Overheads

The cost included under this head is 0.32 % of the total

works cost. This considers the general administrative expenses,

plant over heads and the expenses towards selling of power.

Selling Expenses

This cost is 0.75 % of the revenue earned by selling energy

to the grid. This cost comes out to about Rs. 6.7 Lakhs.

Utilities Cost

This included the cost of water, chemicals, oil, lubricants

and other consumables used in the plant. This cost is 1.3 % of

the revenue earned by selling energy to the grid. This cost comes

out to about Rs. 11.80 Lakhs.

Taxes On Generation And Sales

No expenses under this head is considered since this is not

applicable.

Escalation Provision For Various Costs And Expenses

The cost of Fuel, Energy, utilities and the expenses towards

Administration, O & M, selling etc. considered in the analysis

are expected to increase over the years, and the escalation

considered for the various items are given in Table A of this

chapter.

Depreciation

The Depreciation applicable for the co-generation plant is

the same as that applicable for other power generation plants.

Based on the latest guidelines and the applicable depreciation

for this category of plant and equipment is 5 % on the straight

line basis. The depreciation applicable to buildings is 3.46 %.

Since the building cost component of the total Co-generation

project cost is very marginal, a uniform depreciation rate of 5 %

is applied to the total installed project cost.

Generation Cost

The Table C gives the cost of generation of electricity at

the grid per KWh, for ten (10) years operation from plant

commissioning , based on a net energy sale of 39.92 Million KWHr.

No derating of the plant capacity is required over the ten years

period. The cost of generation of the saleable electrical energy

at the grid works out to around Rs. 1.16 per KWHr. This figure

varies between Rs. 1.41 and Rs 0.90 during the ten years period.

Sales And Profitability Statement

Table D gives the details of the sales and profitability. No

provision is made for Income Tax in the analysis of the

profitably, since the G.O.I. has given a five years tax holiday

for private sector power generation, and also the Factory is in

the co-operative sector. The operating profit increases

progressively over the succeeding years, as the interest charges

on term loans are progressively declining starting with Rs.

457.84 Lakhs in the first year of commercial operation, the

profit changes to Rs. 414.03 Lakhs at the end of tenth year of

operation.

Cash Flow

The details of the estimated cash flow generated by the

project operation over a period of ten years is given in table E.

After the re-payment of all the term loans, at the end of the

tenth year, there is a net cumulative surplus cash of Rs.2943.65

Lakhs. It may be seen from the statement, that the term loan re-

payment starts in the third year and ends in the eighth year.

IRR, DSCR And Break-even

Table F gives the working of project Internal Rate of Return

(IRR) and The Debet Service Coverage Ratio (DSCR). The project

IRR works out to 21.92 %, and the average DSCR over the ten years

periods works out to 2.504. The DSCR which is around 3.24 in the

initial two years comes down as the loan re-payments starts in

the third year, and again gradually increases as the interest

burden comes down over the years. The project gives a rate of

return of 44.74 % on the equity, based on the operating profit.

Table G gives the break even analysis. The break even capacity

works out to 54.30 % based on the estimated working results of

the second year of operation.

Table ABASIS FOR FINANCIAL ANALYSIS

Page 1 of 3

-------------------------------------------------------S.No. Description Unit Quantity-------------------------------------------------------

1. Installed Project Cost Rs. Lakhs 2469.00

2. Subsidy From G.O.I. Rs. Lakhs 281.32

3. Equity From PAIL Rs. Lakhs 1023.34

4. Term Loan

- Long term loan Rs. Lakhs 1164.34- Loan for working Rs. Lakhs 0.00

capital

5. Number Of Season Days 180

6. Project Schedule Months 18

7. Gross Power Generation KW 20300.00

8. In-house Consumption For KW 8210.00 Sugar Plant

9. In-house Consumption For KW 890.00 Co-generation Plant

10. Net Exportable Power KW 11200.00 To Grid

11. Plant Capacity % 90.0Utilization

12. Wheeling and Banking % 2.0

13. Seasonal Energy Supply MKWHr 39.92To Grid

14. Surplus Bagasse Used Tonne/Yr 59400

Page 2 of 3-------------------------------------------------------S.No. Description Unit Quantity-------------------------------------------------------

15. Sale Price Of Energy Rs./KWHr 2.25#

16. Sale Price Of Bagasse Rs./Tonne 250.00#

17. Opern. & Maint. Cost Rs. Lakhs 61.70#

18. Admin. & Overheads Rs. Lakhs 7.90#

19. Selling Expenses Rs. Lakhs 6.70#

20. Utility Cost Rs. Lakhs 11.80#

21. Taxes On Generation Rs. Lakhs 0.00And Sales

22. Moratorium In Loan Years 2Repayment

23. Term Loan Repayment Years 6Period

24. Interest Rate On Term % 17.50Loan

25. Project Cost Apportionment 0.00To Sugar Plant

Page 3 of 3-------------------------------------------------------S.No. Description Unit Quantity-------------------------------------------------------

26. Annual Cost Escalation On % 0.00Fuel

27. Annual Cost Escalation On % 0.00Opern. & Maint.

28. Annual Cost Escalation On % 0.00Admin. & Selling

29. Annual Cost Escalation On % 0.00Utilities

30. Annual Cost Escalation On % 0.00Energy

-------------------------------------------------------Note :

# Figures thus identified are at the time of start of the project

Table - BWork Sheet for Interest Payment and Loan Repayment

All payments are made half yearly and all rupees are in Lakhs.

Loan Amount : 1164.34Moratorium : 2

Interest(%) : 17.5 % Repayment Period : 6

Yr

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

9

9

Half year

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

Loan payment

0.00

0.00

0.00

0.00

97.03

97.03

97.03

97.03

97.03

97.03

97.03

97.03

97.03

97.03

97.03

97.03

0.00

0.00

Out StLoan

1164.34

1164.34

1164.34

1164.34

1067.31

970.28

873.25

776.22

679.19

582.16

485.13 388.10

291.07

194.04

97.01

0.02

Interest

101.88

101.88

101.88

101.88

101.88

93.40

84.90

76.41

67.92

59.43

50.94

42.45

33.96

25.47

16.98

8.49

0.00

0.00

Total Half .Repay.

101.88

101.88

101.88

101.88

198.91

190.43

181.93

173.44

164.95

156.46

147.97

139.48

130.99

122.50

114.01

105.52

Yr. Loanrepayment

__

0.00

__

0.00

__

194.06 __

194.06

__

194.06

__

194.06 __

194.06

__

194.06

__

0.00

Yr. Inst.

__

203.76

__

203.76

__

195.28

__

161.31

__

127.35

__

93.39

__

59.43

__

25.97

__ 0.00

Table G

BREAK-EVEN ANALYSIS

Analysis For The Second Year Of Operation-----------------------------------------

1. Sales Realization Rs. Lakhs : 898.20

2. Variable Costs ---------------

a. Fuel Cost Rs. Lakhs : 148.50

b. Utilities Cost Rs. Lakhs : 11.80

c. Selling Expenses Rs. Lakhs : 6.80

d. Total Variable Cost Rs. Lakhs : 167.00

3. Contribution Rs. Lakhs : 731.20

4. Fixed Costs ---------------

a. Opern.& Maint.Cost Rs. Lakhs : 61.70

b. Admin.& Overheads Rs. Lakhs : 7.90

c. Interest On Term Rs. Lakhs : 203.80Loan

d. Depreciation Rs. Lakhs : 123.40

e. Total Fixed Cost Rs. Lakhs : 396.80

5. BREAK-EVEN CAPACITY : 54.30%-------------------------------------------------------