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Reaching Full Potential of Ash UtilizationVidharbha Industries Power Ltd

( a unit of Reliance Power LtdMIDC, Butibori, Nagpur)

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11th National Quality ConclaveD L Shah Quality Awards 2016

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VIPL – A SNAPSHOT• 2 X 300 MW coal-based plant• One of the most compact power plant in India, 273 Ac.• Coal sourcing : WCL, Import blending (Max Ash Content 34%)• Environment-benign technology : HCSD, ZLD-RO• SPM < 40 mg / NM3. 100 % Ash utilization from 3rd year of operation• Aux : 8%, Sp. Water Consumption 2.0 M3 / MWH• Best MTBF for Boiler Tube Leak : 560 days

The case study would narrate how VIPL, a plant as young as 3 years, couldpenetrate the markets of the existing power plants to get access to CementPlants, and adopt innovative approaches to become 100% Ash Utilization Plant.

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WHY THIS PROJECT ?

• VIPL has 40 Ac ash pond (CEA norm is 360 Ac for 1000 MW)• 100% Ash Utilization is a necessity at VIPL. It is by design

VIPL ASH POND(After Ash utilization-

Present Stage)

VIPL ASH POND(Prior to ash utilization-Initial stage)

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Good news : MoP announced to add 300 GW Renewable, 60 GW Nuclear Power by 2030.

Bad news : 62% of India’s Power Generation (excluding CPP) is from Coal.

Ugly news : Indian coal is similar to Gondwana coal - Low GCV & high ash (0.7 vs 0.45 for US).

200 million ton Ash in 2015; 65,000 Ac land for Ash Pond @ 1380 Ton / Ac

Disposal of coal ash in India requires 1000 sq km by 2015 (World Bank report)

The larger picture

18517,61%

24508,8%993, 1%5780, 2%

42783,14%42849,

14%

Coal GasDiesel NuclearHydro Renewable Energy Sources

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• Building materials (cement, concrete, bricks) & Road construction form bulk of Global use

• 60% of India’s use come from Construction sector - Cement, RMC, Bricks & Road

REGULATORY vs FACTUAL POSITION

• Plants in operation before Nov 2009 notification to utilize 100% fly ash within 5 years.

Plants in operation after Nov 2009 notification to utilize 100% fly ash within 4 years.

• 16 years after GoI made 100% Ash Utilization mandatory in 1999, India’s utilization is 50%.

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STRENGTHS

VIPL is 200 KM away from Cement Plants, most ofwhom are in Chandrapur.

VIPL is close to Nagpur city, which has scope forBrick, RMC plants.

VIPL is in MIDC area, where many industries wantto develop their area which fly ash can be fillingmaterial.

STRENGTHS

VIPL is 200 KM away from Cement Plants, most ofwhom are in Chandrapur.

VIPL is close to Nagpur city, which has scope forBrick, RMC plants.

VIPL is in MIDC area, where many industries wantto develop their area which fly ash can be fillingmaterial.

WEAKNESSES

Cement plants are surrounded by many plants -Mahagenco (7800 MW), GMR (600 MW), Dhariwal(600 MW), KSK (600 MW), NTPC (2320 MW), andIndia Bulls (1250 MW).

Transportation cost to cement plant from VIPL ismore compared to Mahagenco, GMR, KSK, Dhariwal,etc

WEAKNESSES

Cement plants are surrounded by many plants -Mahagenco (7800 MW), GMR (600 MW), Dhariwal(600 MW), KSK (600 MW), NTPC (2320 MW), andIndia Bulls (1250 MW).

Transportation cost to cement plant from VIPL ismore compared to Mahagenco, GMR, KSK, Dhariwal,etc

THREATS

VIPL is inside MIDC; No additional Land isavailable for Ash Pond.

220 KV line (MSEB) over the Pond makes raisingof Dyke impossible.

Capacity of Ash Pond is ~ 10 lakh ton, only ayear’s ash can be kept.

If ash is not utilized, plant has to close down.

THREATS

VIPL is inside MIDC; No additional Land isavailable for Ash Pond.

220 KV line (MSEB) over the Pond makes raisingof Dyke impossible.

Capacity of Ash Pond is ~ 10 lakh ton, only ayear’s ash can be kept.

If ash is not utilized, plant has to close down.

OPPORTUNITIES

There are many abandoned quarries at 20 KMradius to VIPL.

VIPL blends imported coal with domestic. Fines,Blenn Ratio is more suitable to Cement plants.

R-Cement, a group cement plant, is very close toVIPL location.

OPPORTUNITIES

There are many abandoned quarries at 20 KMradius to VIPL.

VIPL blends imported coal with domestic. Fines,Blenn Ratio is more suitable to Cement plants.

R-Cement, a group cement plant, is very close toVIPL location.

ANALYSIS OF POSSIBLE AVENUES

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METHODOLOGY ADOPTED❶ CEMENT

• Cement production expected to increase @ 8% CAGR in 2015-17, capacity

touching 421 million ton (CAG report). PPC is ~ 70% of total cement in India.

• @ 30% fly ash, Cement industry would require 80-100 million ton by 2017.

• European standards maximum of 55% by weight for siliceous fly ash in cement

production. Maximum permitted level of fly ash in India is 35%.

• Cement - the best hope.

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• Made Infrastructure :

• Separate silo for fine ash from later ESP fields

• Pneumatic conveying line to R-Cement @ 1 KM from VIPL

• With some Incentive in transportation, deals clinched.

• Customer –focussed KPIs – Blenn Ratio, Dedicated Road. TAT for cement bulker

~ 30 minutes

• Customers – Ultra Tech, Martha-Amubuja, ACC, R-Cement

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❷ ABANDONED QUARRY BACK-FILLING

• Unique opportunity. About 90% of India’s mines are open cast.

• VIPL is surrounded by many Stone/Earth-Quarries in 20 KM radius

• No regulation for mine operators . No motivation for to seek ash for mine filling.

• Shared success stories elsewhere.

• Talcher (through pipeline of about 9 km), Gare Palma (Raigarh)

• Obtained NOC from Gram Panchayat. Obtained permission from MPCB .

IV/1 Sub-block, Raigarh, CG‘South Balanda’ mine, Talcher, Odisha

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Ghodeghat quarry beforereclamation

Plantation at Ghodeghatquarry after reclamation

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Ghodeghat quarry afterreclamation, Plantation bySarpanch of Ghodeghatvillage

Jal Kund :Drinking Water forthe domestic animals

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Sawangi Quarry being reclaimed

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Borkhedi Stone Quarrybefore reclaimation

Borkhedi Quarry afterreclaimation : Vegetation

being grown

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❸ BRICK MAKING

• India 2nd largest brick producer (after China). Annual prod. ~ 200 billion bricks

11 million workers (mostly migrant) work in Brick industry

• Nearly, 1 lakh brick units but mostly hand-moulding, sun-drying

• Consumes 540 million tons of top soil per year. 50,000 acre per year being lost.

SOLUTION IS AUTOMATED / SEMI-AUTOMATEDASH BRICKS

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Moulding De-Moulding Horizontal & Vertical Cutting

Auto-Clave Finished Bricks Bricks at work

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RED CLAY BRICKS FLY ASH BRICKS

Varying color as per soil Pleasing color like cement

Uneven shape as hand made Uniform in shape and finish

Plastering required No plastering required

Heavier in weight Lighter in weight

Compressive strength is Low Compressive strength is High

Thermal conductivity is High Thermal conductivity is Low

Water absorption is High Water absorption is Low

• Conducted Workshops. Invested in own Truck Fleet to deliver fly ash• VIPL supporting 48 Brick units with gross capacity of 1.5 lakh bricks per day.

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Loading andTransportationof Fly Ash atVIPL

Bricks producedwith Fly Ash of

VIPL

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BRICK PLANTS SUPPORTED WITH VIPL ASH :Sr no. Brick plant Name Sr No Brick plant Name

1 Arun Kothari Plant 25 Prasad bricks2 Ashirwad Industris 26 Pravin bricks3 B&D Enterprises 27 Primiyer Bricks4 Birla Cement 28 Prashant Bricks5 B.R.Bricks 29 R.R.Agency6 Ganesh Suplier 30 Raj Construction7 Gayatri Bricks 31 Raj uday Bricks8 Gold Create 32 Reliabuild Solution9 Gunvant patil hinganghat 33 Rupesh Enterprises

10 Gupta bricks 34 S.B.Bricks11 janta Sales 35 S.D.Bricks12 Jay Ambey Infra 36 S.K. Bricks13 K.S.D. Bricks 37 S.S. Transport14 karmore bricks 38 S.s.Industries15 Kartik Cement Marketing 39 Satran Enterprises16 Kasturi bricks 40 Sawarkar bricks17 Karwatkar bricks 41 Shah bricks18 Kothamkar bricks 42 Shekh Bricks19 Luxmi narayan bricks 43 Shree Bricks20 Madur & Madhur Egency 44 Shreeji Blocks21 Mohini Bricks 45 Siddharth Agraval22 Nagpur bricks 46 Suprim Infra23 Om Bricks Chindwada 47 vedshida Products24 Om Sai transport 48 Zodape Brothers

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Sr no. RMC plant Name1 Ultratech RMC Dongargaon2 Goldcrete RMC Plant, Hingna, Butibori3 Omshivam Bidcon Shankarpur4 Suprime Infra Butibori5 Birla RMC Hingna6 Ashtavinayak RMC Hingna7 RMC India Hingna

VIPL Fly ash being used by local RMC plants

❹ RMC PLANTS

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❺ ROAD & EMBANKMENT

• Within lead of 50 KMs, road & embankment application proves economical.

• If pavement is in large scale, replacing Concrete with Fly Ash comes cheaper.

TYPICAL CROSS-SECTION OF ROAD EMBANKMENT USING FLY / BOTTOM ASHIndian Roads Congress, Special Publication IRC:SP-58, Guidelines for Use of Fly ash in

Road Embankment (2001)

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Stone pitching for Filter Media Drainage system forEmbankment

Spreading & Compaction ofPond Ash

• VIPL is concluding discussion with NHI for construction of Outer Ring Road ofNagpur city.

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100% Ash Utilization in 3rd year

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Sl.No

Name of Power Utility Nos.of

TPS

InstalledCapacity(MW)

Fly AshGeneration(Million-ton)

Fly AshUtilization(Million-ton)

% age

1 JSW Energy Ltd 2 2060 0.29 0.25 84.002 Maharashtra State PowerGeneration Corporation Ltd.(M.S.P.G.C.L) 7 7960 5.41 3.44 63.713 N.T.P.C. Ltd. 17 34175 29.65 9.75 32.884 MSELDC (Maharashtra) 1 540 0.23 0.18 80.005 GMR Warora Energy Ltd.(Maharashtra) 1 600 0.44 0.37 84.116 Adani Power MaharashtraLtd. 1 3300 1.83 0.48 26.297 Rattan India Power Ltd.(Maharashtra) 1 1350 0.43 0.2 46.728 Ideal Energy Projects Ltd.(Maharashtra) 1 270 0 0 09 Dhariwal Infrastructure Ltd. 1 600 0 0 0

10 VIPL 1 600 0.69 0.69 100In 14-15, VIPL achieved 29% (against target of 50%). By 15-16 (exit), VIPL had utilized100% Ash utilization (against target of 70%)

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0

10

20

30

40

50

60

70

80

90

100

Adani PowerMaharashtra

Ltd.

N.T.P.C. Ltd. Rattan IndiaPower Ltd

MAHAGENCO JSW EnergyLtd

GMR WaroraEnergy Ltd.

VidarbhaIndustriesPower Ltd

NationalAverage

2633

47

64

84 84

100

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Ash Utilization Comparision (%)

Source: CEA Fly ash Generation and Its Utilization (FY-2015-16 1st half)

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Utilization : National trend vs VIPL trend

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Mode of Utilization General trends (%) VIPL Trends (%)

Cement 41.97 40Mine filling 10.91 20Brick and tiles 12.85 17Reclamation of Low line areas 11.21 10Ash Dyke raising 7.67 0Roads and fly overs 4.87 0Agriculture 2.15 2Concrete 1 1Hydro Power sector 0.04 0Others 7.32 10

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0

5

10

15

20

25

30

35

40

45

Cement Mine filling Brick andtiles

Reclamationof Low line

areas

Ash Dykeraising

Roads andfly overs

Agriculture Concrete Hydro Powersector

Others

Modes of Fly Ash Utilization Comparision (%)

National Avg (%) VIPL Actual (%)Source: CEA Fly ash Generation and Its Utilization (FY-2015-16 1st half)

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21%6%6%5%4%

2%1%1%0%4%

50%

Modes of Fly Ash Utilization in India during the First half of FY2015-16

1 Cement2 Bricks & Tiles3 Reclamation of low lying area4 Mine filling5 Ash Dyke Raising6 Roads & Flyovers7 Agriculture8 Concrete9 Hydro Power Sector10 Others10 TOTAL

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SOCIO-ECONOMIC BENEFIT Avg Ash Disposal cost through HCSD in Ash Pond = Rs 106 / TonAvg Ash Utilization cost = Rs 87 / TonAvg Ash produced = 6.9 Lakh Ton (15-16)Actual saving in 15-16 = (106-87) x 6.9 Lakh = Rs 131 Lakh Employment to 48 Brick Plants, Truck Drivers, Plantation caretakers

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Tangible Benefits :• Turned abandoned Quarries into Gardens, Vegetations, Farm House,Playground, Cash-crops like Bamboo, other commercial avenues like solarpower• Creating entrepreneurs for local community

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In-Tangible Benefits :• Saves land. No resource can be more costlier.• Saves water which otherwise would have been evaporated in ash pond• Saves Gypsum for Cement Plants• Conserves natural top soil that nature takes millions of year to create butotherwise would have been lost for Red Brick Plants, Roads, Bridges• When used as a supplementary cementitious material (SCM), reduces theamount of cement needed in concrete which equates to a significantreduction of (0.8 tones of Co2/ tones of cement )in CO2 output• Improves the physical properties of the soil, increasing moisture retention inpoor soils and aeration; provides the micronutrients for plant growth;Synergistic effects between coal ash and organic substances that improve thesoil and promote plant growth.

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THANK YOU…

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“Coal” Relation

With estimated at 60.6 billion tons of coal,

With coal production about 605 million tons,

With 8% consumption of the total world’s total coal, With 160 million tons in imports,

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India is positioned third in theWorld,

trailing behind China andJapan.

What is the Worry ????