1

PRE FEASIBILITY REPORT

For

PROPOSED EXPANSION OF CARBON BLACK (10950 TPM

TO 15750 TPM ) AND CO-GENERATION POWER PLANT

(22 MW TO 32 MW) IN EXISTING PREMISES

of

M/s. PHILLIPS CARBON BLACK LTD.

Survey No. 47, SH – 46, Village: Mokha, Tal: Mundra Dist:

Kutchh-370421, Gujarat

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CONTENTS

Sr. No. Description Page No.

1. Executive Summary 3

2. Introduction of the Project/Background information 7

3. Project Description 10

4. Site Analysis 15

5. Planning Brief 16

6. Proposed Infrastructure 16

7. Rehabilitation and resettlement (R & R) Plan 18

8. Project Schedule & Cost Estimates 18

9. Analysis of Proposal (Final Recommendations) 18

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1.0 EXECUTIVE SUMMARY

1.1 Company Profile

Introduction

PCBL, a part of USD 2500 million (or 2.5 billion) RP-Sanjiv Goenka Group, has a business of USD

500 million and four strategically located state-of-the-art Carbon Black plants at Durgapur,

Palej, Cochin and Mundra. PCBL today is India's largest and globally seventh largest carbon

black producer.

Set up in collaboration with a US company Phillips Petroleum, PCBL started production in 1962

with 14,000 metric tonnes (MT) of carbon black at Durgapur. Currently, it has a production

capacity of 4,72,000 MT per annum in India, and involves a dedicated capacity of Specialty

Blacks of 40,000 MT per annum at Palej.

PCBL provides a complete portfolio of products to meet the specific end requirements across

Rubber, Plastics, Coatings, Inks and other niche industries globally. The Company has been

continuously reinventing itself in order to make the best in class products. Additionally, PCBL's

after sales service and strong technical support ensures a fiercely loyal base of customers from

around the world. PCBL has etched its global footprints and has a market presence in more than

30 nations with decanting stations, warehouses located near customer locations. A few of the

Company's prized customers are CEAT, MRF, Michellin, Yokohama, Birla Tyres, Goodyear,

Sumitomo Tires, Bridgestone, Kumho Tires, etc.

PCBL has redefined its business by establishing captive power plants at each factory from the

off-gas or waste product from the carbon black manufacturing process thus creating a

sustainable green movement. The gas, a by-product of carbon black production, is harnessed

for generating electricity at the Company's Captive Power Plants (CPP), at Palej, Durgapur,

Mundra and Kochi. That is why PCBL is the first carbon black company in the world to receive

carbon credits. The Company has heavily cut down on carbon and gas emission, and serves

green power to Large Private industrial units and State Electricity utilities.

From the pioneer plant at Durgapur in the East to Kochi plant in the south, Palej and Mundra

plants in the west - PCBL footprint spans across India. Wherever PCBL goes, the Company

becomes an integral part of the social eco-system. PCBL's more than 50 years' journey to be the

cleanest carbon black company is the result of meticulous planning and committed execution.

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1.2 Project Details

SR.

NO. PRODUCT NAME

EXISTING

CAPACITY

(MT/MONTH)

ADDITIONAL

CAPACITY

(MT/MONTH)

TOTAL CAPACITY

(MT/MONTH)

1 Carbon Black 10950

Phase – I: 2400

Phase – II: 2400

Phase – I: 13350

Phase – II: 15750

2 Co-generation Power (waste gas

base) 22 MW

Phase – I: 2 MW

Phase – II: 6 MW

Phase – I: 24 MW

Phase – II: 32 MW

1.3 Green Belt Development

Company has developed an effective green belt within the factory and on periphery of the

factory. In addition to this, majority of the vacant land is planted with trees, shrubs and grasses.

1.4 Power & Fuel Requirement

Fuel

Existing:

LDO= 30 KL/Month (only for heating & cooling during startup & stops)

HSD= 4 KL/Month

After Proposed Expansion:

LDO= 40 KL/Month (only for heating & cooling during startup & stops)

HSD= 6 KL/Month

Energy :

Existing: 7 MW from own CPP

After Proposed Expansion:

Total: 9.5 MW from own CPP

Note: During start up & shut down PGVCL power will be utilized.

1.5 Water Requirement and Wastewater Generation & Treatment

Total Proposed Expansion scenario:

• Source of water will be met through GWIL water supply. Total water requirement will be

2029 m3/day (Fresh –1691 m

3/day + Recycled -338 m

3/day).

• The total wastewater generations will be 391 m3/day.

• 338 KL/Day wastewater from the Cooling and chilling, boiler, and washing will be treated in

ETP and treated effluent recycled back for cooling & chilling purpose and gardening.

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• 53 m3/day Domestic wastewater generated shall be disposed through septic tank & soak

pit.

1.6 Air Pollution Source and Control Management

The source of air pollution due to the expansion project will be Flue gas emission and process

gas emission. The source of flue gas emission will be from the stack attached to Flare stack-1,

Flare stack-2, CPP-1, CPP-2, CPP-3, D.G. Set. The source of process gas emission will be from

the vent attached to VBC- 1, VBC- 2, VBC- 3, Dryer -1, Dryer -2 & Dryer -3 etc.

Total:

1) Flue Gas Stacks

SR.

NO. STACKS ATTACHED TO

HEIGHT FROM

GROUND

LEVEL (m)

CONSUMPTION

OF FUEL (KL/hr)

DIAMETER

(m)

EXPECTED

POLLUTANTS

1 Process Plant –Flare stack

(Existing)

50 Nil 1.0 SPM, SOx, NOx

2 Process Plant –Flare stack

(Proposed)

50 Nil 1.8 SPM, SOx, NOx

3 CPP 16MW–Boiler Chimney

(Existing)

80 Nil 2.5 SPM, SOx, Nox

4 CPP 6MW–Boiler Chimney

(Existing)

80 Nil 1.8 SPM, SOx, Nox

5 CPP 8MW–Boiler Chimney

(Proposed)

80 Nil 1.8 SPM, SOx, Nox

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2) Process Stacks

1.7 Hazardous Waste Management

SR.

NO

.

PROCESS STACK

ATTACHED TO

HEIGHT FROM

GROUND (m)

DIAMETER

(m)

AIR POLLUTION

CONTROL SYSTEM

EXPECTED

POLLUTANTS

1 VBC- 1 (Existing) 50 1.0 Bag Filter SPM, NOx

2 VBC- 2 (Existing) 50 1.0 Bag Filter SPM, NOx

3 Dryer -1 (Existing) 50 1.1 Bag Filter SPM, NOx

4 Dryer -2 (Existing) 50 1.1 Bag Filter SPM, Nox

5 VBC- 3 (Proposed) 50 1.0 Bag Filter SPM, NOx

6 Dryer -3 (Proposed) 50 1.1 Bag Filter SPM, NOx

SR.

NO.

NAME OF

WASTE

WASTE

CATEGORY

EXISTING QTY.

MT/YEAR

ADDITIONAL

QTY. MT/YEAR

TOTAL MODE OF DISPOSAL

1 Used Oil I-5.1 1.56 0.64 2.20 Collection, Storage,

Transportation, reuse in

process/sent to GPCB registered

recycler

2 Spent Acid from

Batteries

I-36.3 0.024 0.00 0.024 Collection, Storage,

Transportation, Disposal by

Authorized way

3 Chemical Sludge

from Waste water

treatment

I-34.3 27.00 8 35 Collection, Storage,

Transportation, Disposal at TSDF

site of SEPPL.

4 Oily Sludge

Emulsion

I-4.1 6.0 0 6 Collection, Storage,

Transportation, Disposal at

Common Incineration site of

SEPPL – Bhachau

5 Used Batteries 17 0.1

(CCA

Amendm

0 0.1 Collection, Storage,

Transportation, and Disposal as

per lead batteries rules.

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2.0 INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION

2.1 Identification of the project and project proponent. In case of mining project, a copy of

mining lease/letter of intent should be given.

Identification of the project

ent

Applied)

6 Discarded Drum /

Barrels/

Containers / Bags/

Liners

33.3 8

(CCA

Amendment

Applied)

4 12 Collection, Storage,

Transportation, sent to GPCB

Approved recycler

7 Plastic Waste X-9 0.5

(CCA

Amendment

Applied)

0.5 1 Collection, Storage,

Transportation, sent to GPCB

Approved recycler.

8 Spent Ion

Exchange Resin

34.2 0.4

(CCA

Amendment

Applied)

0.2 0.6 Collection, Storage,

Transportation, Disposal at TSDF

site.

9 Oily Cotton Waste

/Leather Hand

Gloves / Cotton

Hand Gloves

33.2 0.4

(CCA

Amendment

Applied)

0.1 0.5 Collection, Storage,

Transportation, and Disposal by

incineration at SEPPL – Bhachau.

10 E-Waste 18.5 0.5

(CCA

Amendment

Applied)

0.2 0.7 Collection, Storage,

Transportation, sent to GPCB

Approved Recycler

11 Waste Insulation

Material

- 1

(CCA

Amendment

Applied)

0.5 1.5 Collection, Storage,

Transportation, and Disposal by

incineration at SEPPL – Bhachau

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PROPOSED EXPANSION OF CARBON BLACK (10950 TPM TO 15750 TPM ) AND CO-GENERATION

POWER PLANT (22 MW TO 32 MW) IN TWO PHASES IN EXISTING PREMISES

Identification of the project proponent

Presently following are the directors of the company:-

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2.2 Brief description of nature of the Project

PROPOSED EXPANSION OF CARBON BLACK (10950 TPM TO 15750 TPM ) AND CO-GENERATION

POWER PLANT (22 MW TO 32 MW) IN TWO PHASES IN EXISTING PREMISES

2.3 Need for the project and its importance to the country and or region

The objective is to

• Consolidate Business.

• Constantly upgrade the product range.

• Continuously reduce the Costs & improving Quality.

• Generate local employment

• Increase Govt. revenue in form of taxes and duties

2.4 Demands-Supply Gap

Based on our informal survey of the market with our current customers and various traders, we

have found that there is a big potential for the range of the products we are planning. This is

expansion of existing product's manufacturing capacity.

2.5 Imports vs. Indigenous production

Based on the current cost of indigenous raw materials and the non availability of some

materials, we will have to import some of the key raw materials as they are not available

indigenously. This will make us very competitive against imported finished products and we will

be able to increase the export of our finished products.

2.6 Export Possibility

There is export potential of our proposed products. At present, we are exporting approx 30 % of

product to countries all over the world.

2.7 Domestic/Export Markets

There is export potential as well as demand in local market. At present with operation at

approx. 100 % capacity utilization, we are not able to meet the demand of the market.

2.8 Employment Generation (Direct and Indirect) due to project.

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Employment would be as per prevailing norms of state government for skilled and unskilled

people for the proposed expansion project.

3.1 Project Description

3.2 Type of Project including interlinked and interdependent projects, if any.

PROPOSED EXPANSION OF CARBON BLACK (10950 TPM TO 15750 TPM ) AND CO-GENERATION

POWER PLANT (22 MW TO 32 MW) IN TWO PHASES IN EXISTING PREMISES

- Category: A-5(c)

3.3 Location (map showing general location, specific location and project boundary & project

site layout) with coordinates.

Map showing general location

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Layout

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3.3 Details of alternate sites considered and the basis of selecting the proposed site,

particularly the environmental considerations gone into should be highlighted.

Major factors involved in the selection of site are listed below:

• Existing operational industry

• Site is very well connected by road

• Proximity to Mundra & Kandala Ports

• Availability of sufficient land free from cultivation

• Availability of power evacuation facilities

• Availability of water for industrial use

• Environment-friendly zone

• Uninterrupted power supply.

3.4 Size or Magnitude of Operation

Please refer Section 1.2 (Page No. 4) of Pre-Feasibility Report.

3.5 Project Description with process details (a schematic diagram/flow chart showing the

project layout, components of the project etc. should be given)

Please refer Annexure-III in Form-I (Page No. 14)

3.6 Raw material required along with estimated quantity, likely source, marketing area of

final products. Mode of transport of raw materials and finished products.

Please refer Annexure-1 in Form-I (Page No. 14)

3.7 Resource optimization/recycling and reuse envisaged in the project, if any, should be

briefly outlined.

There will not resource optimization/recycling and reuse envisaged in the project.

3.8 Availability of water its source, energy/power requirement and source should be given.

Power & Fuel Requirement

Fuel

Existing:

LDO= 30 KL/Month (only for heating & cooling during startup & stops)

HSD= 4 KL/Month

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After Proposed Expansion:

LDO= 40 KL/Month (only for heating & cooling during startup & stops)

HSD= 6 KL/Month

Energy :

Existing: 7 MW from own CPP

After Proposed Expansion:

Total: 9.5 MW from own CPP

Note: During start up & shut down PGVCL power will be utilized.

Water Source

The entire water requirement will be met through GWIL water Supply.

3.9 Quantity of wastes to be generated (liquid and solid) and scheme for their

management/disposal.

Liquid Waste:

• Source of water will be met through GWIL water supply. Total water requirement will be

2029 m3/day (Fresh –1691 m

3/day + Recycled -338 m

3/day).

• The total wastewater generations will be 391 m3/day.

• 338 KL/Day wastewater from the Cooling and chilling, boiler, and washing will be treated in

ETP and treated effluent recycled back for cooling & chilling purpose and gardening.

• 53 m3/day Domestic wastewater generated shall be disposed through septic tank & soak

pit.

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3.10 Schematic representations of the feasibility drawing which give information of EIA

purpose.

RECONNAISSANCE SURVEY OF EXISTING PLANT ANNUAL REPORT

MARKET ASSESSMENT

FINANCIAL REPORT

PROJECT REPORT

INTRODUCTION

MONITORING OF AIR, WATER & SOIL QUALITY & NOISE

LEVELS. DATA ON METEOROLOGY SOCIO-ECONOMIC STATUS

& BASIC AMENITIES. SITE VISITS BY AND INTERVIEWS WITH

LOCALS

BASELINE

ENVIRONMENTAL

STATUS

ENVIRONMENTAL INFORMATION CENTRE

CENTRAL GROUND WATER BOARD

GUJARAT POLLUTION CONTROL BOARD (GPCB)

PUBLIC HEALTH ENGINEERING DEPT.

AGRICULTURE DEPARTMENT

FOREST DEPARTMENT

IRRIGATION DEPARTMENT

EMPLOYMENT EXCHANGE

HEALTH CENTER

CENSUS DEPT.

INDIAN METEOROLOGICAL DEPT.

SOCIOECONOMIC

STATUS &

INFRASTRUCTURE

PROPOSED Expansion

PLANT

FACILITY DESCRIPTION

IMPACTS

METHODOLOGY OF

IMPACT

ASSESSMENT

IDENTIFICATION & ASSESSMENT OF IMPACTS

EVALUATION OF IMPACTS BY MATRIX METHOD

SOURCE OF INFORMATION OVERVIEW OF

E. I. A. STUDIES

ACTIVITIES

ENVIRONMENTAL

MANAGEMENT PLAN

DESCRIPTION OF EFFLUENT TREATMENT PLAN, AIR

POLLUTION CONTROL, HAZARDOUS WASTE MANAGEMENT,

GREEN BELT DEVELOPMENT MONITORING PROGRAM

RISK ANALYSIS

STUDIES &

DISASTER

MANAGEMENT PLAN

SAFETY, HEALTH & ENVIRONMENTAL POLICY, GUIDELINES BY

DIRECTOR GENERAL OF FACTORY SAFETY, MINISTRY OF LABOR. CONSEQUENCE ANALYSIS

PREPARATION OF DISASTER MANAGEMENT PLAN

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4.0 Site Analysis

4.1 Connectivity

• Site is very well connected by road

• Availability of power evacuation facilities

• Availability of water for industrial use

4.2 Land Form, Land Use and Land Ownership

It will be incorporated in EIA Studies.

4.3 Topography (along with map)

It is attached separately.

4.4 Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area

under CRZ)), shortest distances from the periphery of the project to periphery of the forests,

national park, wild life sanctuary, eco sensitive areas, water bodies (distance from HFL of the

river), CRZ. In case of the notified industrial area, a copy of the Gazette notification should be

given.

It will be incorporated in EIA Studies. CRZ Clearance is not applicable to us.

4.5 Existing Infrastructure

Existing Infrastructures facilities are listed in Topic no. 1.6 on Page no. 5.

4.6 Soil Classification

It will be incorporated in EIA Studies.

4.7 Climatic data from secondary sources.

Primary source: our own weather station & Secondary sources: Indian Meteorological

Department, Ahmedabad.

4.8 Social infrastructure available.

Depending on the requirement of the region, social infrastructure will be provided.

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5.0 Planning Brief

5.1 Planning Concept (type of industries, facilities, transportation etc) Town and Country

planning/Development authority classification.

PROPOSED EXPANSION OF CARBON BLACK (10950 TPM TO 15750 TPM ) AND CO-GENERATION

POWER PLANT (22 MW TO 32 MW) IN TWO PHASES IN EXISTING PREMISES

5.2 Population Projection

No major effect on population in the surrounding region.

5.3 Land use planning (breakup along with green belt etc.)

5.4 Assessment of Infrastructure Demand (Physical & Social)

• Employment would be as per prevailing norms of state government for skilled and unskilled

people for the proposed expansion project.

• Social Welfare

• Cordial industrial relation in the industry shall be established and representation shall be

made to villagers for help for creation of facilities related to health, education, etc.

5.5 Amenities/Facilities

It will be incorporated in the EIA Studies.

6.0 Proposed Infrastructure

6.1 Industrial Area (Processing Area)

Processing Area (Processing Zone, ETP Area and Utility Area): 112647 m2

6.2 Residential Area (Non Processing Area)

Non Processing Area (Green belt, road, Open Area): 181076 m2

Sr. no. Particular Area in M2

1 Rooftop & building shade 20262

2 Road/Paved Area (Plant) 112647

3 Green Belt Area 119210

4 Open Area 39337

Total Area 291456

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6.3 Green Belt

Company has developed an effective green belt within the factory and on periphery of the

factory. In addition to this, majority of the vacant land is planted with trees, shrubs and grasses.

6.4 Social Infrastructure

Depending on the requirement of the region, social infrastructure will be provided.

6.5 Connectivity (Traffic and Transportation Road/ Rail/Metro/ Water ways etc.)

Site is very well connected by road & railway.

6.6 Drinking water Management (Source & Supply of water)

Water requirement will meet through the GWIL Water Supply.

6.7 Sewerage System

Sewage pipes are laid in entire company for the removal and disposal of mainly non-harmful

liquid wastes from the offices, canteen and domestic waste coming from different sections.

These liquid wastes are treated and disposed by septic tank and soak pit.

6.8 Solid Waste Management

Please refer Section 1.6 in Pre-Feasibility Report.

6.9 Power Requirement & Supply/Source

Energy :

Existing: 7 MW from own CPP

After Proposed Expansion:

Total: 9.5 MW from own CPP

Note: During start up & shut down PGVCL power will be utilized.

7.0 Rehabilitation and Resettlement (R & R ) Plan

7.1 Policy to be adopted (central/state) in respect of the project affected including home

oustees, land ouatees and landless laborers (a brief outline to be given)

There is no habitation on the existing project area and it is industrial land which is purchased by

company for development of Company, so that R & R policy is not applicable to this project.

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There shall be no displacement of any population in project area.

8. Project Schedule & Cost Estimates

8.1 Likely date of start of construction and likely date of completion (Time schedule for the

project to be given).

We shall start construction after getting environmental clearance and consent to establish. We

shall start production upon making application for CCA.

(Tentative Date for Construction Start: 01.11.2016)

(Tentative Project Completion Date: 31.10.2017)

8.2 Estimated Project cost along with analysis in terms of economic viability of the project.

Total costs of the existing project is Rs. 369 Crore. Total costs of the Proposed Expansion project

will be Rs. 210.00 Crore.

9. Analysis of Proposal (Final Recommendations)

9.1 Financial and social benefits with special emphasis on the benefit to be local people

including tribal population, if any, in the area.

• Employment would be as per prevailing norms of state government for skilled and unskilled

people for the proposed project.

• Social Welfare shall be done.

• Cordial industrial relation in the industry shall be established and representation shall be

made to villagers for help for creation of facilities related to health, education, etc.