Prefeasibility Report of Proposed cement Plant(3500TPD) at ...environmentclearance.nic.in/writereaddata/form-1A/PFR/56_5-2013 PFR... · 6. The Trumboo Group installed cement plant

Prefeasibility Report of Proposed cement Plant(3500TPD) at village:Kheru,Distt. Pulwama Srinagar, J&K

Pre feasibility Report of Proposed New Cement Plant at village Khrew District Pulwama Srinagar.J & K Project Proponent: Trumboo Cements Pvt. Ltd.

Dec 2012

Prepared by: EQMS India Pvt. Ltd,

New Delhi


Project: Environmental Impact Assessment

Study for proposed new cement Plant at village Khrew, District:Pulwama srinagar,J&K

Client: Trumboo Cements Pvt. Ltd.

Project No.: EQMS/ © Copyright EQMS All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission of the publish


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TABLE OF CONTENTS

Table of Contents .................................................................................................................. 1 Executive summary ............................................................................................................... 3 1. Introduction .................................................................................................................... 8

1.1. Industry Background .............................................................................................. 8 1.2. Types of modern cement ....................................................................................... 8

1.2.1. Portland cement................................................................................................. 8 1.2.2. Non-Portland hydraulic cements ...................................................................... 10 1.2.3. Cement industry in the world............................................................................ 11 1.2.4. Global Cement Production in 2010 .................................................................. 12 1.2.5. Global Cement Capacity in 2010 ..................................................................... 13 1.2.6. Cement output in 2004..................................................................................... 14 1.2.7. China’s production ........................................................................................... 14

1.3. Cement Industry in India ...................................................................................... 14 1.3.1. Major Players in Indian Cement Industry ......................................................... 15 1.3.2. Recent Investments in the Indian Cement Industry .......................................... 15 1.3.3. Cemnt Production Scenario ............................................................................. 16 1.3.4. Capacity, Capacity Utilization and Production Growth...................................... 16

1.4. Cement industry in Jammu and Kashmir ............................................................. 16 1.4.1. Past Trend in Consumption ............................................................................. 16 1.4.2. Future Demand ................................................................................................ 17 1.4.3. Current Supply ................................................................................................. 18

1.5. LIMESTONE DEPOSIT, ITS LOCATION, RESERVE AND GRADE .................... 18 1.6. The setting of cement .......................................................................................... 18 1.7. Safety issues ....................................................................................................... 18

2. Process Description ..................................................................................................... 19 2.1. Introduction .......................................................................................................... 19 2.2. Process Technology ............................................................................................ 19

2.2.1. Dry Process Cement Manufacturing Technology ............................................. 19 2.2.2. Advantages of Dry Process System using precalciner system ........................ 19

2.3. Process Technolgy Description ........................................................................... 19 2.3.1. Limestone Crushing ......................................................................................... 19 2.3.2. Raw Material Drying & Grinding ....................................................................... 20 2.3.3. Raw Meal Homogenizing & Kiln Feed System ................................................. 20 2.3.4. Pyro-Processing (Preheated, Precalciner,Kiln & Cooler) Section ..................... 20 2.3.5. Clinker Storage, Grinding and gypsum crushing .............................................. 21 2.3.6. Cement Storage & Packing .............................................................................. 22

2.4. Product Storages ................................................................................................. 22 2.4.1. Sizing of storages ............................................................................................ 22

2.5. Raw materials and Auxillary Operations .............................................................. 22 2.5.1. Proposed mining operation .............................................................................. 23 2.5.2. Mining of Clay/silica stone............................................................................... 24

2.6. Broad sizing of major plant & machinery and storages ........................................ 26 2.6.1. Plant Capacity ................................................................................................. 26 2.6.2. Norms For Equipment Sizing ........................................................................... 26 2.6.3. Norms for Storage Capacity ............................................................................. 27

2.7. Instrument and Control Philosophy ...................................................................... 27 2.8. Project Utilities ..................................................................................................... 28

2.8.1. Compressed air system. .................................................................................. 28 2.8.2. Inplant laboratory and quality control. .............................................................. 29 2.8.3. Maintenance workshop .................................................................................... 29 2.8.4. Fuel ................................................................................................................. 29


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2.8.5. Water Supply and Distribution(Water Balance to be provided) ......................... 29 2.8.6. Power .............................................................................................................. 30 2.8.7. Other facilities .................................................................................................. 31 2.8.8. Employement Generation: ............................................................................... 31

2.9. Environmental aspects ........................................................................................ 31 2.9.1. Land Degradation ............................................................................................ 31 2.9.2. Pollution by effluent gases .............................................................................. 32 2.9.3. Sulphur dioxide in the ambient ......................................................................... 32 2.9.4. Air pollution ...................................................................................................... 33 2.9.5. Water pollution ................................................................................................. 34 2.9.6. Noise pollution control...................................................................................... 34 2.9.7. Safety precautions. .......................................................................................... 34

3. Site Analysis ................................................................................................................ 35 3.1. The Site Location ................................................................................................. 35 3.2. Salient Feature Of The site: ................................................................................. 35

3.2.1. Sources of Raw Materials ................................................................................ 35 3.2.2. Availability of suitable land ............................................................................... 35 3.2.3. Road linkage and transportation of cement ...................................................... 35

3.4. Layout of the cement plant................................................................................... 36 4. Project Cost and Schedule ........................................................................................... 37

4.1. Project Implementation: ....................................................................................... 37 4.2. Estimated cost of the project and financial indicators. .......................................... 37

5. INDUSTRIAL POLICY 2004 ......................................................................................... 38


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EXECUTIVE SUMMARY

Introduction The dynamic and progressive Trumboo Group of Industries Srinagar have strategically decided to set up 3500 TPD modern rotary kiln system at village Khrew, Dist :Pulwama with expected cost of Rs. 445 Crores. The proposed plant site is located 30 KM from Srinagar and on the Northern side of Jammu Srinagar national Highway.

TRUMBOO GROUP of Industries, Srinagar started their operation in 1952 and at present the group is engaged in the following business.

1. Textiles Tradin

2. Cement Manufacturing

3. Roller Flour Mills

Business activity of the group is concentrated in the J&K state.

Executive profile and strategy

The group is professionally managed private company and is running by the board of

directors. The names and qualifications of the directors are indicated below.

Name Qualification Designation

Mohd Shafi Trumboo Graduate Director

Mushtaq Trumboo BA, LLB Director

Waseem Trumboo B.Com, MBA Director

The company has formulated an ambitious strategy to set up a cement plant of 3500 TPD

capacity in the village of Khrew which is located north-west of Srinagar and 30 KM away

from Srinagar. The history of the company is in possession of logical and necessary

business acumen of growth and expansion and therefore the promoters have ventured for

3500 TPD cement plant.

Experience of the company

The chronological growth record in business expansion of Trumboo Group is as follows:

1. As started earlier the company was floated in 1952 by Mr. Haji Abdul Ahad Trumboo in

the business of Textile Trading. The founder had a strong business acumen foresight

and vision which resulted in further development.

2. An oil mill and flour Mill was installed in the year of 1957

3. The second flour mill was installed in the year of 1962.

4. In the year of 1979 the third flour mill was installed in the name of Trumboo Flour mill.

5. In the year of 1989 one more roller flour was installed in Srinagar in tune with their vision

of further expansion. This flour mill installation was known as Gulmarg flour mill Private

limited.


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6. The Trumboo Group installed cement plant of 200 TPD capacity based on VSK

technology in the year of 1997 on the outskirts of Srinagar. Subsequently, the plant

capacity was raised to 400 TPD capacity in the late 2003 and the plant is running

satisfactorily.

7. The Trumboo Group installed second cement plant of 1000 TPD capacity based on

rotary technology. The same was commissioned in oct.2010.

8. The group has enhanced their business activity in textile trading and at present it is a

largest trading house in J&K

The group employs around 800 people out of which 450 people are working in cement plant

and balance people are working n other activities.

Conclusion

The experience of the company reflects that they are interested to expand their business

activity. The Group is already managing cement plants from the year 1997.The group has

gained strong experience of running cement plants. It is expected that the group may be

able to utilise this experience gained so far effective installation and running of the proposed

3500 TPD cement plant.

Information on the Deposit and infrastructure

Location

The limestone deposit is situated about 30 K.m away from Srinagar and at a distance of 6.0

Km from the northern high way connecting Jammu and Kashmir.The deposit is in the form of

hilly terrain, one side is having gradual stiffness and the other side is very stiff. The length of

the deposit is approximately 1.5 k.m and having a gross deposit to the tune of 45 million

tonnes.

The above deposit is under the jurisdiction of Jammu and Kashmir government and leasing

of the same is done in favour of the company. The place where the limestone deposit is

located is named as village Khrew.

Geography and Economic Characteristics of the area.

The deposit area lies at a height of 1850m mean sea level but accessible by road from

Jammu and Kashmir. The limestone deposit about 53% of CAO and therefore, suitable for

cement production. The availability of power at a low tariff rate is also suitable for the

proposed plant. The climatic condition except the winter season is friendly for smooth

working in the cement plant. The economic condition of the people in the above area is

conducive for hiring unskilled & Semi skilled labours and staff at a cheaper rate but technical

staffs are generally expatriates. The temperature of the above area is varying between (-)7 C

(+) 25 C in various phases of the year

Location / Infrastructure


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The proposed plant is located 30 Km away from Srinagar and 6 Km on northern side of the

national highway connecting Jammu and Srinagar. From the site visit it appears that no

infrastructure facilities are available in the area but the same can be developed along with

project as the land can be easily procured.

Limestone Deposit

The limestone deposit for the proposed cement plant is located at about 30 Km north-west of

Srinagar. The topography of the deposit area is hilly, and surface of the deposit is steeply

dipping. The approximate RL of the deposit site is about 1830 m above MSL. The size of

deposit is about 1.5 Km x 0.5 Km which has about 45 Million Tones of gross limestone

reserve. The average quality of limestone is as follows.

CaO : 53.01%

MgO : 1.89%

SiO2 : 0.97%

Fe2O3 : 0.41%

Al2O3 : 0.93% LOI : 43.00

Information about the Project

Plant capacity

Clinkerisation plant: 3500 TPD or 1155000 TPY clinker on the basis of 330 days of

working per year.

Raw Material and Raw Mix Design.

a) Clinkerisation factor : About 1.56 tonnes of raw material required

to produce 1 tonne of clinker.

b) Limestone proportion source : About 76 % of raw mix.

Source Deposit near the plant location

c) Additive proportion : clay 21 %,sand 3%

Source Deposit near the plant location

d) Gypsum : About 4 % of cement ,

Source To be brought from outside the plantsite.

Process Technology and Requirement of Raw Material

Based on raw material, dry process for manufacturing of cement has been adopted for the

project. Requirement of raw material and fuel on raw mix design at 100 % plant capacity are

as follows:

Approximate raw material requirement per year are furnished below:

Limestone : 1350000 Tonne


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Clay : 412500 Tonne

Sand : 50995 Tonne

Gypsum : 45570 Tonne.

Petcoke:coal: 60:40 9specific heat consumption)

Land

During the site visit, availability of land for plant site was seen and found that enough land is available for the plant close to the limestone deposits at Bajnar location.

Major Plant and Equipment

1. Crushing crusher for limestone

2. Raw material Grinding : Grinding of raw materials in right proportions in ball mill with

high efficiency separator.

3. Raw material blending: Rcc Continuous blending and storage silo 1 day storage

capacity.

4. Pyroprocessing section consisting of rotary kiln with string five stage preheater ,inline

precalciner will be irked by pet coke. Exhaust gas from kiln and raw mill be deducted by

glass bag filter and grate cooler exhaust by electrostatic precipitator for meeting the

present day emission level

FUEL Pet coke and coal will be used as a fuel in this project for providing the necessary thermal

energy for conversion of raw materials into cement Both pet coke and coal will be

transported to Jammu railway yard by box-type wagon. Thereafter, the same will be

transported to the proposed projected site by road transport

Electrical power

The power required for running the cement plant and its auxiliaries can be obtained from the

PDD Substation located at a distance of 3.5 Km from the proposed plant site. Thereafter,

necessary distribution of power can be thought of as per the electrical load requirement of

the different sections of the proposed cement plant. The total power requirement for the

3500 TPD cement plant as envisaged now is about 15 MVA’s.

Water

Source : from underground

Requirement : 500 m3

Pollution Control Equipment

The incorporation of highly efficient, low emitting ,fabric filters at all transfer points, glass bag

houses for raw mill kiln venting and ESP for high temperature gases from cooler shall be

considered and the project cost shall have to be decided accordingly.


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Clinker and cement manufacturing plants pose environmental hazards to the land,

vegetable, atmosphere and inhabitants within the vicinity of the factory. Most of these

environmental hazards have been identified and measures taken during the design of the

plant to minimize discomfort, inconvenience and ill health to the factory workers as well as

the local people.

Project Implementation: About 40 months after finalization of investment.

Project cost: The toal cost of the Project is 47,528.62,however details are given in chapter


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1. INTRODUCTION

.

1.1. Industry Background

1. The history of the cement industry in India dates back to the 1889 when a

Kolkata-based company started manufacturing cement from Argillaceous. But

the industry started getting the organized shape in the early 1900s. In 1914,

India Cement Company Ltd was established in Porbandar with a capacity of

10,000 tons and production of 1000 installed. The World War I gave the first

initial thrust to the cement industry in India and the industry started growing at

a fast rate in terms of production, manufacturing units, and installed capacity.

This stage was referred to as the Nascent Stage of Indian Cement Company.

In 1927, Concrete Association of India was set up to create public awareness

on the utility of cement as well as to propagate cement consumption.

2. The cement industry in India saw the price and distribution control system in

the year 1956, established to ensure fair price model for consumers as well

as manufacturers. Later in 1977, government authorized new manufacturing

units (as well as existing units going for capacity enhancement) to put a

higher price tag for their products. Cement Company, in any country, plays a

major role in the growth of the nation. Cement industry in India was under full

control and supervision of the government. However, it got relief at a large

extent after the economic reform. But government interference, especially in

the pricing, is still evident in India. In spite of being the second largest cement

producer in the world, India falls in the list of lowest per capita consumption of

cement with 180 kg. The reason behind this is the poor rural people who

mostly live in mud huts and cannot afford to have the commodity

1.2. Types of modern cement

1.2.1. Portland cement

3. Cement is made by heating limestone (calcium carbonate) with small

quantities of other materials (such as clay) to 1450 °C in a kiln, in a process

known as calcination, whereby a molecule of carbon dioxide is liberated from

the calcium carbonate to form calcium oxide, or quicklime, which is then

blended with the other materials that have been included in the mix. The

resulting hard substance, called 'clinker', is then ground with a small amount

of gypsum into a powder to make 'Ordinary Portland Cement', the most

commonly used type of cement (often referred to as OPC).

India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT), has got a huge Cement Company. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12.

http://en.wikipedia.org/wiki/Limestone

http://en.wikipedia.org/wiki/Clay

http://en.wikipedia.org/wiki/Kiln

http://en.wikipedia.org/wiki/Calcination

http://en.wikipedia.org/wiki/Carbon_dioxide

http://en.wikipedia.org/wiki/Calcium_oxide

http://en.wikipedia.org/wiki/Gypsum


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4. Portland cement is a basic ingredient of concrete, mortar and most non-

specialty grout. The most common use for Portland cement is in the

production of concrete. Concrete is a composite material consisting of

aggregate (gravel and sand), cement, and water. As a construction material,

concrete can be cast in almost any shape desired, and once hardened, can

become a structural (load bearing) element. Portland cement may be grey or

white.

5. Portland cement blends are often available as inter-ground mixtures from

cement manufacturers, but similar formulations are often also mixed from the

ground components at the concrete mixing plan]

1.2.1.1 Portland blastfurnace cement

6. It contains up to 70 % ground granulated blast furnace slag, with the rest

Portland clinker and a little gypsum. All compositions produce high ultimate

strength, but as slag content is increased, early strength is reduced, while

sulfate resistance increases and heat evolution diminishes. Used as an

economic alternative to Portland sulfate-resisting and low-heat cements]

1.2.1.2 Portland flyash cement

7. It contains up to 35 % fly ash. The fly ash is pozzolanic, so that ultimate

strength is maintained. Because fly ash addition allows a lower concrete

water content, early strength can also be maintained. Where good quality

cheap fly ash is available, this can be an economic alternative to ordinary

Portland cement.]

1.2.1.3 Portland pozzolan cement

8. It includes fly ash cement, since fly ash is a pozzolan, but also includes

cements made from other natural or artificial pozzolans. In countries where

volcanic ashes are available (e.g. Italy, Chile, Mexico, the Philippines) these

cements are often the most common form in use.

1.2.1.4 Portland silica fume cement.

9. Addition of silica fume can yield exceptionally high strengths, and cements

containing 5–20 % silica fume are occasionally produced. However, silica

fume is more usually added to Portland cement at the concrete mixer.]

1.2.1.5 Masonry cements

10. These are used for preparing bricklaying mortars and stuccos, and must not

be used in concrete. They are usually complex proprietary formulations

containing Portland clinker and a number of other ingredients that may

include limestone, hydrated lime, air entrainers, retarders, waterproofers and

coloring agents. They are formulated to yield workable mortars that allow

rapid and consistent masonry work. Subtle variations of Masonry cement in

the US are Plastic Cements and Stucco Cements. These are designed to

produce controlled bond with masonry blocks.

1.2.1.6 Expansive cements

http://en.wikipedia.org/wiki/Concrete

http://en.wikipedia.org/wiki/Mortar_(masonry)

http://en.wikipedia.org/wiki/Grout

http://en.wikipedia.org/wiki/Construction_aggregate

http://en.wikipedia.org/wiki/Gravel

http://en.wikipedia.org/wiki/Sand

http://en.wikipedia.org/wiki/Water

http://en.wikipedia.org/wiki/Ground_granulated_blast_furnace_slag

http://en.wikipedia.org/wiki/Fly_ash

http://en.wikipedia.org/wiki/Pozzolanic

http://en.wikipedia.org/wiki/Pozzolan

http://en.wikipedia.org/wiki/Volcanic_ash

http://en.wikipedia.org/wiki/Italy

http://en.wikipedia.org/wiki/Chile

http://en.wikipedia.org/wiki/Mexico

http://en.wikipedia.org/wiki/Philippines

http://en.wikipedia.org/wiki/Silica_fume

http://en.wikipedia.org/wiki/Mortar_(masonry)

http://en.wikipedia.org/wiki/Stuccos

http://en.wikipedia.org/w/index.php?title=Air_entrainer&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Stucco_Cement&action=edit&redlink=1


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11. It contain, in addition to Portland clinker, expansive clinkers (usually

sulfoaluminate clinkers), and are designed to offset the effects of drying

shrinkage that is normally encountered with hydraulic cements. This allows

large floor slabs (up to 60 m square) to be prepared without contraction joints.

1.2.1.7 White blended cements

12. It may be made using white clinker and white supplementary materials such

as high-purity metakaolin.

1.2.1.8 Colored cements

13. These are used for decorative purposes. In some standards, the addition of

pigments to produce "colored Portland cement" is allowed. In other standards

(e.g. ASTM), pigments are not allowed constituents of Portland cement, and

colored cements are sold as "blended hydraulic cements".

1.2.1.9 Very finely ground cements

14. These are made from mixtures of cement with sand or with slag or other

pozzolan type minerals that are extremely finely ground together. Such

cements can have the same physical characteristics as normal cement but

with 50% less cement particularly due to their increased surface area for the

chemical reaction. Even with intensive grinding they can use up to 50% less

energy to fabricate than ordinary Portland cements.]

1.2.2. Non-Portland hydraulic cements

1.2.2.1 Pozzolan-lime cements

15. Mixtures of ground pozzolan and lime are the cements used by the Romans,

and can be found in Roman structures still standing (e.g. the Pantheon in

Rome). They develop strength slowly, but their ultimate strength can be very

high. The hydration products that produce strength are essentially the same

as those produced by Portland cement.

1.2.2.2 Slag-lime cements

16. Ground granulated blast furnace slag is not hydraulic on its own, but is

"activated" by addition of alkalis, most economically using lime. They are

similar to pozzolan lime cements in their properties. Only granulated slag (i.e.

water-quenched, glassy slag) is effective as a cement component.

1.2.2.3 Super sulfated cements

17. These contain about 80% ground granulated blast furnace slag, 15 % gypsum

or anhydrite and a little Portland clinker or lime as an activator. They produce

strength by formation of ettringite, with strength growth similar to a slow

Portland cement. They exhibit good resistance to aggressive agents,

including sulfate.

1.2.2.4 Calcium aluminate cements

18. These are hydraulic cements made primarily from limestone and bauxite. The

active ingredients are monocalcium aluminate CaAl2O4 (CaO · Al2O3 or CA

http://en.wikipedia.org/wiki/Metakaolin

http://en.wikipedia.org/wiki/Cement#cite_note-15

http://en.wikipedia.org/wiki/Pozzolanic_ash

http://en.wikipedia.org/wiki/Agricultural_lime

http://en.wikipedia.org/wiki/Pantheon,_Rome

http://en.wikipedia.org/wiki/Ground_granulated_blast_furnace_slag


http://en.wikipedia.org/wiki/Anhydrite

http://en.wikipedia.org/wiki/Ettringite

http://en.wikipedia.org/wiki/Calcium_aluminate_cements

http://en.wikipedia.org/wiki/Limestone

http://en.wikipedia.org/wiki/Bauxite


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in Cement chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO · 7

Al2O3, or C12A7 in CCN). Strength forms by hydration to calcium aluminate

hydrates. They are well-adapted for use in refractory (high-temperature

resistant) concretes, e.g. for furnace linings.

1.2.2.5 Calcium sulfoaluminate cements

19. These are made from clinkers that include ye'elimite (Ca4(AlO2)6SO4 or

C4A3 in Cement chemist's notation) as a primary phase. They are used in

expansive cements, in ultra-high early strength cements, and in "low-energy"

cements. Hydration produces ettringite, and specialized physical properties

(such as expansion or rapid reaction) are obtained by adjustment of the

availability of calcium and sulfate ions. Their use as a low-energy alternative

to Portland cement has been pioneered in China, where several million

tonnes per year are produced.[17][18] Energy requirements are lower

because of the lower kiln temperatures required for reaction, and the lower

amount of limestone (which must be endothermicallydecarbonated) in the

mix. In addition, the lower limestone content and lower fuel consumption

leads to a CO2 emission around half that associated with Portland clinker.

However, SO2 emissions are usually significantly higher.

1.2.2.6 "Natural" cements

20. These correspond to certain cements of the pre-Portland era, produced by

burning argillaceous limestones at moderate temperatures. The level of clay

components in the limestone (around 30–35 %) is such that large amounts of

belite (the low-early strength, high-late strength mineral in Portland cement)

are formed without the formation of excessive amounts of free lime. As with

any natural material, such cements have highly variable properties.

1.2.2.7 Geopolymer cements

21. These are made from mixtures of water-soluble alkali metal silicates and

aluminosilicate mineral powders such as fly ash and metakaolin.

1.2.3. Cement industry in the world

http://en.wikipedia.org/wiki/Cement_chemist_notation

http://en.wikipedia.org/wiki/Mayenite

http://en.wikipedia.org/wiki/Ye%27elimite

http://en.wikipedia.org/wiki/Cement_chemist_notation



http://en.wikipedia.org/wiki/Argillaceous_minerals

http://en.wikipedia.org/wiki/Belite

http://en.wikipedia.org/wiki/Geopolymers

http://en.wikipedia.org/wiki/Fly_ash

http://en.wikipedia.org/wiki/Metakaolin


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Figure 1.1 Cement industry in the world

1.2.4. Global Cement Production in 2010


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Figure 1.2 Global Cement Production in 2010

1.2.5. Global Cement Capacity in 2010

Figure 1.3: Global Cement Capacity in 2010


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1.2.6. Cement output in 2004

22. In 2010 the world production of hydraulic cement was 3,300 million tonnes.

The top three producers were China with 1,800, India with 220 and USA with

63.5 million tonnes for a combined total of over half the world total by the

world's three most populated states.

23. For the world capacity to produce cement in 2010 the situation was similar

with the top three states (China, India and USA) accounting for just under half

the world total capacity.

1.2.7. China’s production

24. "For the past 18 years, China consistently has produced more cement than

any other country in the world. [...] (However,) China's cement export peaked

in 1994 with 11 million tonnes shipped out and has been in steady decline

ever since. Only 5.18 million tonnes were exported out of China in 2002.

Offered at $34 a ton, Chinese cement is pricing itself out of the market as

Thailand is asking as little as $20 for the same quality."]

25. In 2006 it was estimated that China manufactured 1.235 billion tonnes of

cement, which was 44% of the world total cement production.] "Demand for

cement in China is expected to advance 5.4% annually and exceed 1 billion

tonnes in 2008, driven by slowing but healthy growth in construction

expenditures. Cement consumed in China will amount to 44% of global

demand, and China will remain the world's largest national consumer of

cement by a large margin.In 2010, 3.3 billion tonnes of cement was

consumed globally. Of this, China accounted for 1.8 billion tonnes

1.3. Cement Industry in India

26. The cement industry in India is dominated by around 20 companies, which

account for almost 70% of the total cement production in India. In the present

year, the Indian cement companies have produced 11 MT cement during

April-September 2009. It took the total cement production inFY09 to 231 MT

27. Cement industry in India has successfully maintained almost total capacity

utilization levels, which resulted in maintaining a 10% growth rate. In 2006-07,

the total despatch was 155 MT, which rose up to 170 MT in 2007-08. The

month of October 2009 saw a cement despatch of 12.22 MT, which was

almost 9% higher than the total cement despatch of 11.21 MT in the same

month in the previous year.

Table 1.1:Cement industry in India

2009-10 (Apr-Oct) (in MT) 2008-09 (Apr-Oct) in MT

Production 101.04 95.05

Despatches (Excluding Export) 100.24 94.33

Export 1.46 2.16

Capacity Utilization (%) 85 93


http://en.wikipedia.org/wiki/Cement#cite_note-NEAA070619b-24

http://business.mapsofindia.com/cement/


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1.3.1. Major Players in Indian Cement Industry

28. There are a number of players prevailing in the cement industry in India.

However, there are around 20 big names that account for more than 70% of

the total cement production in India. The total installed capacity is distributed

over around 129 plants, owned by 54 major companies across the nation.

29. Following are some of the major names in the Indian cement industry:

Table 1.2 Major Players in Indian Cement Industry

Company Production Installed Capacity

ACC 17,902 18,640

Gujarat Ambuja 15,094 14,860

Ultratech 13,707 17,000

Grasim 14,649 14,115

India Cements 8,434 8,810

JK Group 6,174 6,680

Jaypee Group 6,316 6,531

Century 6,636 6,300

Madras Cements 4,550 5,470

Birla Corp. 5,150 5,113

1.3.2. Recent Investments in the Indian Cement Industry

30. The following table indicates the major players and their share in the Cement

sector:-

Table 1.3 Recent Investments in the Indian Cement Industry(Million tonnes)

S. No. Group Installed Capacity Cement Market *

As on Production Share (%)

31.3.2009

30.9.2009 2008-09

2009-10

(Apr-Sep)

1 A.C.C. Ltd. 22.41 22.41 20.95 10.38 10.73

2 Grasim Industries 19.65 19.65 16.32 9.50 9.82

3 Ambuja Cements Ltd. 18.30 18.30 18.01 9.13 9.44

4 UltraTech Cement Ltd. 21.90 21.90 15.86 8.25 8.53

5 India Cements 10.74 11.84 9.11 4.94 5.11

6 Jaypee Group 9.93 12.13 8.05 4.79 4.95

7 Shree Cement 9.10 9.10 7.78 4.57 4.72

8 J.K. Group 9.37 10.17 7.50 3.93 4.06

9 Madras Cements 8.92 10.12 6.27 3.91 4.04

10 Century Textiles 7.80 7.80 7.22 3.70 3.83

11 Dalmia Cement 6.50 9.00 3.38 2.05 2.12

All India 219.17 230.82 181.61 96.73

* Based on Cement Production - 2009-10 (Apr-Sep)


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1.3.3. Cemnt Production Scenario

31. The annual domestic demand of cement, the annual production of cement

and the export of cement during the last five years is as given below:-

(in Million Tonnes) Table 1.4 Cemnt Production Scenario

Year Demand of Cement Production of Cement

Export of Cement

2005-06 135.56 141.81 5.98

2006-07 149.34 155.64 5.89

2007-08 164.03 168.31 3.65

2008-09 177.98 181.61 3.20

2009-10 196.12 201.00 2.27

32. As per the Report of the Working Group on Cement Industry for the XI Five

Year Plan (2007-2012), the projected demand of cement for the next three

years is as given below:-

Table 1.5: demand of cement for the next three years (in Million Tonnes)

Year Demand of Cement

2010-11 231.66

2011-12 257.61

2012-13 ` 290.00

1.3.4. Capacity, Capacity Utilization and Production Growth

Table 1.6: Capacity, Capacity Utilization and Production Growth(Million tonnes)

Year Capacity Utilization% Production Production Growth (%)

2005-06 157.35 90 141.81 11.16

2006-07 165.64 94 155.64 9.75

2007-08 179.10 94 168.31 8.14

2008-09 205.96 88 181.61 7.90

2009-10 240.85 84# 201.37 12.67@

1.4. Cement industry in Jammu and Kashmir

1.4.1. Past Trend in Consumption

33. Consumption of cement in Jammu and Kashmir (JK) has increased from 650

thousand tones per annum (tpa) in 1998-993 to 707 thousand tpa in 2002-03,

and to about 1225 thousand tpa in 2005-2006. At present the annual increase

in cement consumption is around 17 %.

34. Besides the local cement supplies, the region has been receiving large

quantities of cement from the manufacturers outside the region.

35. Marketwise, JK may be divided into the 3 distinct zones of Jammu, Indian

Kashmir and Indian Ladakh. During recent years, the majority of total cement

consumption of Jammu was met by the ACC, Gujarat Ambuja and Shree


Page 17

Cement brands brought in from outside. The average cost of these brands, as

of now, is as follows:

Lean period(Dec-Jan) Normal period(other mths)

(Rs/50 kg bag of cement) (Rs/50 kg bag of cement)

370 400

36. The same in Kashmir and Ladakh was met by suppliers from the region itself

the average cost of these brands, as of now, is as follows:

Lean period(Dec-Jan) Normal period(other mths)

(Rs/50 kg bag of cement) (Rs/50 kg bag of cement)

280 325

37. Cement supplies to Jammu and Kashmir from outside the State travel through

the Lakhanpur Checkpoint only and are required to pay the usual taxes such

as toll tax, octroi, sales tax, etc.

38. Some grinding units as well as mini cement plants of the state apart from

those listed in Exhibit: 2 are also supplying to Kashmir and Ladakh, from

within its own confines.

1.4.2. Future Demand

39. The demand for cement in Jammu & Kashmir is likely to increase. This is

keeping in view the past trend in consumption and likely increase in housing

and infrastructure rebuilding in the state.

40. Also the following projects are in the pipeline:

Railway line from Jammu &Baramulla covering 300 km (100 bridges and

tunnels within)

Mini hydel projects (12 Nos. from 5 to 20 MW within another 3 to 10

years)

Baglier power projects –400 MW –under construction

Uri II power project at Uri –400 MW- constructions started.

Due to militancy, a lot of hotels, bridges, govtoffices need major repair/

reconstruction. Also, due to the resurgence of tourism there’ll be new

hotels needing a lot of cement.

At the start of Srinagar-Muzaffarabad Bus service the Honorable Prime

Minister of India, Dr. Man Mohan Singh announced an economic

package of Rs. 24000 Crores for infrastructure development and out of

this almost Rs. 18000 Crores is to be spending on construction of hydel

power projects in the state.

41. The largest consuming areas in the state are generally in and around

Srinagar, the capital of Jammu &Kashmir .

42. Taking into account these growth trends, the demand for cement in Jammu

and Kashmir is likely to increase to 2.5 million TPA by 2015-2016.


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1.4.3. Current Supply

43. The cement plants in Jammu and Kashmir contribute a total installed capacity

of 1250000 TPA producing about 1100000 TPA at a capacity utilization level

of about 80% (average).

1.5. LIMESTONE DEPOSIT, ITS LOCATION, RESERVE AND GRADE

44. The limestone deposit for the proposed cement plant is located at about 30

Km north-west of Srinagar. The topography of the deposit area is hilly, and

surface of the deposit is steeply dipping. The approximate RL of the deposit

site is about 1830 m above MSL. The size of deposit is about 1.5 Km x 0.5

Km which has about 45 Million Tones of gross limestone reserve. The

average quality of limestone is as follows.

CaO : 53.01% MgO : 1.89%

SiO2 : 0.97% Fe2O3 : 0.41%

Al2O3 : 0.93% LOI : 43.00

Distance from present mine to : About 1.5 Km Proposed Cement Plant Present cost of mining of : Rs. 125/- Limestone per Tone inclusive Of breaking, loading, transport- Station and unloading Royalties and cuss per Tone : Rs. 63/- Of Limestone

1.6. The setting of cement

45. Cement sets when mixed with water by way of a complex series of hydration

chemical reactions still only partly understood. The different constituents

slowly hydrate and crystallise while the interlocking of their crystals gives to

cement its strength. After the initial setting, immersion in warm water will

speed up setting. In Portland cement, gypsum is added as a compound

preventing cement flash setting. The time it takes for cement to set varies;

and can take anywhere from twenty minutes for initial set, to twenty-four

hours, or more, for final set.

1.7. Safety issues

46. Bags of cement routinely have health and safety warnings printed on them

because not only is cement highly alkaline, but the setting process is

exothermic. As a result, wet cement is strongly caustic and can easily cause

severe skin burns if not promptly washed off with water. Similarly, dry cement

powder in contact with mucous membranes can cause severe eye or

respiratory irritation. Cement users should wear protective clothing.

http://en.wikipedia.org/wiki/Portland_cement


http://en.wikipedia.org/wiki/Alkali

http://en.wikipedia.org/wiki/Exothermic

http://en.wikipedia.org/wiki/Causticity

http://en.wikipedia.org/wiki/Skin_burn

http://en.wikipedia.org/wiki/Mucous_membrane


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2. PROCESS DESCRIPTION

2.1. Introduction

2.2. Process Technology

2.2.1. Dry Process Cement Manufacturing Technology

47. The most important advancement in cement industry is has been the

development of dry process rotary kiln systems using pre-calcination

technology for manufacture of cement clinker in rotary kiln. In pre-calcination

system a degree of calcination of raw meal up to around 90-95% is achieved

in the pre heater itself before the raw meal enters the kiln.This is achieved by

introducing a secondary firing at the pre heater. With this the volume rating of

the kiln increases and same size of kiln can give much higher output. In fact

precalcination technology is adopted for larger size plants, however, the same

can be used for increasing the output of an existing plant as well.

2.2.2. Advantages of Dry Process System using precalciner system

Stable coating in the burning zone, so higher refractory life which

leads to higher availability of the kiln itself and lower inventory cost on

refractories.

Due to stable kiln operation, the quality of clinker as well as thru’ put

from the kiln shall also be consistent over a longer period of operation.

Considerable savings in cost of fuel.

Better advantage in marketing of cement as produced from rotary kiln

than existing Vertical Shaft Kiln System.

In the precalciner vessel low grade fuel can be used successfully, if

required.

The No emission itself is lower than conventional kiln. No level can

further be reduced in case of pre-calciner system by suitably designed

precalciner vessel in a simple and inexpensive way.

48. Due to the above advantages it is a very common practice now a days to

install dry process rotary kiln system using precalciner system.

2.3. Process Technolgy Description

49. Cement manufacturing process in our plant is described in section wise

manner as under:

2.3.1. Limestone Crushing

50. Run of mines (ROM) limestone is transported to the plant using tipper

trucks. The ROM limestone is unloaded in the hopper of the limestone

crusher and transported to the double impactor crusher by an apron

feeder. To maintain a buffer stock, ROM limestone will be taken to


Page 20

uncovered storage for use during peak winter season. A hammer

crusher will be employed to crush the raw material to -25 mm size.

51. Crushed limestone is taken to the limestone bunker. Limestone from the

bunker is extracted by set of weigh feeders and delivered to a set of belt

conveyor for further feeding to the raw mill.

2.3.2. Raw Material Drying & Grinding

52. Based on the raw mix design three raw material hoppers have been

provided in the raw mill department. Hoppers are covered and vented

through a dust filter.

53. Raw materials and additives are withdrawn from the hoppers by

electronic weigh feeders to maintain its proportion as per raw mix design.

Discharge from the weigh feeders is conveyed by a belt conveyor and is

fed to a ball mill for grinding of raw material. After grinding coarse

fraction is separated and returned to the mill by the classifier followed by

air slide and impact scale. Material thus separated is further ground

inside the mill while the fines i.e. product is sucked by the Separator ID

fan through a battery of cyclones where the product is separated from

the gas stream.

2.3.3. Raw Meal Homogenizing & Kiln Feed System

54. In raw mill department various raw meal components are proportioned,

however, the composition of raw material varies over a period. The

variation in the raw material composition is controlled and evened out

such that it is acceptable to kiln for a stable operation.

55. A continuous homogenizing & storage silo of RCC is provided for

homogenizing the raw mealBlended materials from continuous flow silo

is conveyed by air slide and discharged to a bucket elevator which, in

turn, discharges it to a load cell hopper known as kiln feed bin.

Controlled materials discharged from the kiln feed bin is sampled for

quality control and fed to bucket elevator for feeding to pre heater.

Recirculation sys tem is provided at the discharge of bucket elevator

which takes the material back to the blending silo when kiln is not

operating for a short duration.

56. Kiln feed bin and bucket elevator is vented by separate dust filter.

2.3.4. Pyro-Processing (Preheated, Precalciner,Kiln & Cooler) Section

57. A single stream of five stage pre heater of the latest proven high

efficiency, low pressure drop design with in-line precalciner is provided

for preheating of raw meal. Pre heater consists of a system of cyclones

connected with gas ducts. The gas is sucked by the pre heater fans

through the kiln and pre heater system. Raw meal is introduced in the

gas duct to the to stage cyclone. Gas and raw meal are intimately mixed

as they enter the gas duct. The heat exchange between the gas and raw

meal takes place in the gas ducts and separation of the heated raw meal


Page 21

takes place in the cyclones. This separated raw meal is fed to the gas

duct of the next stage cyclone.

58. Raw meal from Stage-IV cyclone is fed to the precalciner. Fuel and

combustion air are fed to the precallciner at a point, where they are all

intensely mixed and combustion of fuel takes place and the heat is

transferred to raw meal. The gas velocities and length of the precalciner

duct are so arranged that the required degree of precalcination is easily

achieved.

59. The combustion air for the fuel fired in precalciner is taken from the

cooler Ist grate through dust settling chamber and tertiary air duct.

60. The precalcined raw meal (about 90% precalcination) enters the Stage-

V cyclone of the pre heater and is separated and fed to the kiln inlet.

61. The kiln is equipped with a three channel burner. Control on the axial air

and swirl air allows for a precise control on the flame under all

conditions. Kiln is fired with pulverized coal and latest design swirl

chamber burner has been provided for generation of low Nox and

greater heat transfer.

62. The clinker formed in the kiln is cooled in a third generation reciprocating

grate cooler with maximum heat recovery by addition of cooling air, from

the red hot clinker and subsequent utilization of the same as tertiary air

in the calciner. Secondary air required for combustion in kiln I sucked by

pre heater fan from cooler. This reduces the overall energy consumption

for the clinkerisation process. Adequate number of cooling air fans are

provided to supply necessary cooling air. An Electrostatic precipitator

has been provided for dedusting of dust laden cooler gas to meet

pollution norms and the gas is vented to the atmosphere. The spillage

from the cooler is collected in the hopers below the grates and

discharged to the drag chain conveyor.

63. The cooled clinker is discharged to a deep bucket conveyor. Spillage

from the cooler as well as the dust collected in the ESP hopper is also

discharged to the same deep bucket conveyor for further transport to

clinker stockpile.

2.3.5. Clinker Storage, Grinding and gypsum crushing

64. Clinker from the grate cooler is stored in a tent type storage hall with

central column for minimizing dust generation. Clinker is extracted using

set of vibrating feeders and delivered to a pair of belt conveyor followed

by common belt for gypsum & clinker for taking to cement mill feed

hopers.

65. The system provided consists of one no. closed circuit clinker grinding

system with ball mill. Proportioned quantity of clinker and gypsum to be

ground is extracted from the hopers by electronic weight feeder. Mixture


Page 22

of clinker & gypsum thus extracted is transported to the ball mill by a belt

conveyor.

66. Ground material from the mill is discharged via an air slide to a bucket

elevator which in turn discharges it to a high efficiency separator. The

material is fed into the centre of the distribution plate and evenly

dispersed throughout the separating chambers. The finished material is

collected in externally mounted high efficiency cyclones. The coarse

material from the separator is fed back to the mill via an air slide and a

solid flow meter.

67. The separated finished material is fed to the cement transport system by

air slides. Mill venting is achieved by a bag dust filter along with other

auxiliary vents.

2.3.6. Cement Storage & Packing

68. The cement produced is stored in RCC float bottom type silo. For

feeding the cement to the packing section air slide and bucket elevator is

used. Cement from the bucket elevator is discharged to the vibrating

screen. Foreign materials, if any are separated in the vibrating screen

and cement is dropped to the packer bin located below. 1 No Electronic

rotary packing machine is installed. Bagged cement is delivered to the

two plat form mounted type truck loaders for loading on trucks.

2.4. Product Storages

2.4.1. Sizing of storages

NORMAL CAPACITY OF KILN PLANT : 3500 TPD Clinker

CLINKERISATION FACTOR : 1.56

Sr.No. Major Storages Capacity TPH

1 Limestone, Crushed 50000

2 Sand stone/Sand Under Shed 15000

3 Wet Clay Under Shed 20000

4 Raw Coal 15000

5 Pet Coke 5000

6 Raw meal in RCC silo 25000

7 Clinker Tent 30000

8 Cement RCC Silo 10000

9 Gypsum Storage 5000

2.5. Raw materials and Auxillary Operations

69. One of the basic raw materials for the proposed plant is limestone which

is available within a distance of 1.0 Km from the proposed plant site. The

limestone deposit is approximately 1.5 Km long and is in the form of hill.

The one side of the deposit is very stiff and the other side has gradual

inclination. The gradual inclination is on the northern side of proposed

plant and mining on this side will be easier. Accordingly, the plant


Page 23

location has been determined on the southern part of the deposit. The

present requirement is about 1350000 tones of limestone per annum

which can be directly sent from mines to the proposed location by

suitable tipper truck. The estimated annual requirement for other raw

materials for the production of cement is

(i) clay/silica stone – 425000T,

(ii) sand – 150000 T and

(iii) gypsum – 60000T.

(iv) coal 200000 T

(v) Packing bags.

70. Based on the raw mix design as mentioned hereinafter, the requirement

of other raw materials and fuels for the 3500 TPD rotary Kiln plant will

be clay, sand, gypsum, and steam coal . The clay, gypsum and sand are

locally available. Iron ore, and steam coal will have to be procured from

Punjab and South Africa respectively.

2.5.1. Proposed mining operation

2.5.1.1 Scale of Operation for Limestone Mine

71. Based on the clinker production of 3500 TPD, the proposed requirement

of limestone has been worked out as follows.

Table 2.1: SCALE OF OPERATION

1 Capacity of Clinkerising Plant, Tonnes per day 3500

2 Clinkerising Factor 1.56

3 Moisture Content, @ 6% 1.06

4 Transit Loss, 2% 1.02

5 Limestone in Raw Mix @ 76% 0.76

6 Requirement of Limestone Tonnes per day 4000

7 No. of operating days of Cement Plant per year 330

8 Limestone required for Clinkerising plant Tonnes per year 1350000

9 Operating days of mines per year considering 30 days will be lost for severe cold and 65 days for Sundays, holidays and other festival leaves

270

10 Daily mining requirement of limestone, Tones 5000

11 Say in Tonnes per day 5000

12 No. of shift per day 2

13 Anticipated stripping ratio Lst: ob:T:T 0.15

14 Overburden to the handled per day in tones 250

2.5.1.2 Proposed Method of Mining

72. The proposed Method of Mining will be fully mechanized open cast,

adopting drilling & blasting and with the use of heavy earth moving

equipment. Based on the scale of operating and considering the cement

plant life of about 30 years, the deposit has ample reserve to supply the

limestone to the proposed plant on sustainable basis.

2.5.1.3 Requirement of Equipment & Infrastructure


Page 24

73. Based on the scale of operation and method of mining as mentioned

above, the type of mining equipment & infrastructure has been shown

below. The requirement of Civil & Structural works is also mentioned

here and some of them are required by statue. The other infrastructure

requirements for mining like electric power supply (for auto-workshop &

mine illumination), water supply (for drinking) and colony for

accommodation of mining personnel will be part of the in the cement

plant infrastructure.

Table 2.2: PROPOSED REQUIREMENT OF MINING & GARAGE EQUIPMENT

Sr. No. Equipment Particulars

A Mining Equipment

1 DTH Drill Rig-100-130 mm dial. Holes

2 Compressor –450 cam, 150 phi

3 Jack Hammer –32 mm dial. hole

4 Compressor –360 cam, 120 phi

5 Hydraulic Excavator – 2.8 m3

6 Wheel Loader 1.7 m3 bucket capacity

7 Dumper-35 Toner,

8 Dozer –165 HP

9 Explosive Van –10 Tone Capacity

10 Ambulance

B Garage Equipment

1 HOT Crane 10T

2 Compressor

3 Welding Transformer, 500 amps each

4 Washing machine with air compressor(stationary & mobile each)

5 Lifting tackle, Chain block

6 Pneumatic grease & oil pump

2.5.2. Mining of Clay/silica stone.

74. It has been mentioned earlier that the clay/silica stone is available in

nearby sources.

75. The method of mining of clay/silica stone deposit will be open cast for

excavation, loading and transportation of clay/silica stone with the

following considerations.

(a) Proposed capacity of the cement plant is 3500 Toner per day.

(b) Considering the intensity and duration of severe cold, the no. of operating days/year has been considered as 270 days, whereas cement plant will be operated 330 days/year.

(c) The clay/silica stone quarry is proposed to be worked in one eight hour shifts per day to achieve the contemplated rate of production.


Page 25

(d) Clay/silica stone will be mined with deployment of major mining equipment like hydraulic excavator (backhoe type) and tipper truck as mentioned earlier.

(e) The haul distance from clay/silica stone quarry to cement plant has been considered about 7Km. The support services for clay quarry will be available either from cement plants as and when required.

2.5.2.1 Scale of Mining for Clay/Silica stone

76. The scale of clay/silica stone mining has been derived as follows based

on the proposed capacity of the cement plant (clinker) is 3500 Tone per

day.

SCALE OF CLAY/ silica stone MINING OPERATION

Sl. No. Particulars

1 Quantity of Raw Mix @ 1.6 times of Clinker production in Tonnes per

day

5600

2 No. of Operating days of cement plant per year 330

3 Operating days of mines per year 270

4 Requirement of Clay/ silica stone @ 21 % of Raw mix, Tonnes per

day

1176

5 Requirement of Clay/ silica stone Considering moisture content 5%

Tonnes per day

1235

6 Say 1250

2.5.2.2 Production and development programmed for clay/ silica stone quarry

77. The scale of mining operation of clay/ silica stone is @ 1250 TPD.

Before starting the regular production operation from the clay/ silica

stone quarry, the initial mine cut and terminal approach road from the

quarry to existing road to plant may have to be prepared.

2.5.2.3 Requirement of Mining Equipment

78. Based on the Production and Development Programmed as mentioned

earlier, the requirement of mining equipment is given below in the Table.

REQUIREMENT OF CLAY/ SILICA STONE MINING EQUIPMENT & BUILDING

Sr. No Particulars of Equipment

1 Hydraulic Excavator- 1.0m3

2 Tipper- 10 Tone

79. For production of 3500 TPD the following would be the annual

requirement of Non –coking coal


Page 26

Requirement OF Non-coking coal

Sl. No. Particulars

1 Daily Clinker production 3500

2 No. of Operating days of cement plant per year 330

3 Annual production 1155000

4 Coal consumption @ 17 % 196350

5 Say 200000

2.6. Broad sizing of major plant & machinery and storages

2.6.1. Plant Capacity

80. This plant has been designed for daily production of 3500 Tonnes of

clinker which works out to 1155000 tones per annum of clinker based on

norms for operation.

2.6.2. Norms For Equipment Sizing

81. The following norms based on consultant’s experience with the

international cement industry have been developed for sizing of plant &

machinery. This will enable the plant to deliver output at a desired level

on sustained basis.

Clinkerisationfactor : 1.56 Raw Meal : 1 Clinker

Fuel : Petcoke : Coal = 60 : 40

Raw Mix : Limestone : Clay/silica stone : Sand = 76:21:3

82. The operating hours for main machinery are given in Table. These

operating hours have been established based on the operating data of

cement plants.

SIZING OF PLANT & MACHIHNERY

NORMAL CAPACITY OF KILN PLANT : 3500 TPD Clinker CLINKERISATION FACTOR : 1.56

SR.No

Major Equipment Effective hours of Operation per Working Day

Working day per Week

Capacity TPH

1. L/S Crusher 10 6 600

2. Tripper Conveyor 10 6 700

3. Reclaim Conveyor 13 7 700

4. Clay Drier 16 7 75

5. Raw Mill 22 7 300

6. Raw Coat/Pet Coke/ Gypsum Crusher

12 7 75

7. Rotary Kiln 24 24*7 150 TPH

8. Coal Mill 20 7 40


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9. Cement Mill 20 7 200

10. Packing Plant 15 6 400

11. Truck Loader 15 6 400

2.6.3. Norms for Storage Capacity

83. Norms for sizing of storages vary from plant to plant depending upon the

location of the plant with respect to location of the sources of various

input material.

84. Taking into consideration the proposed plant location, the norms given in

Table- have been adopted for deciding the storage capacity.

TABLE :SIZING OF STORAGES

NORMAL CAPACITY OF KILN PLANT : 3500 TPD Clinker CLINKERISATION FACTOR : 1.56

Sr.No. Major Storages Capacity TPH

1 Limestone, Crushed 50000

2 Sand stone/Sand Under Shed 15000

3 Wet Clay Under Shed 20000

4 Raw Coal 15000

5 Pet Coke 5000

6 Raw meal in RCC silo 25000

7 Clinker Tent 30000

8 Cement RCC Silo 10000

9 Gypsum Storage 5000

2.7. Instrument and Control Philosophy

85. For complete automation of the various sub-sections of the proposed

plant, an integrated as well as Segregated control system has been

envisaged. The integrated system has been adopted for the main plant

section viz. the operation of the Raw Mill, Kiln, and Cooler whereas a

segregated control system is adopted for lime stone crushing section.

86. A geographically as well as functionally distributed PLC based control

system with decentralized intelligence has been envisaged for the main

plant section viz. Raw Mills section. Kiln feed and pyroprocessing section

whereas a conventional Relay based system has been envisaged for the

limestone crusher.

87. A PLC based control system has been envisaged for the control of the

entire cement grinding and packing plant whereas a conventional relay

based system has been envisaged for gypsum crushing section.


Page 28

88. Programmable controller PC with in built microprocessor based

controller shall be used for automatic control of the main plant and

cement Mill section.

89. The system will encompass the following sub-areas:

a) Automatic closed loop control

b) Binary logic (interlocks, protection and sequential logic control)

c) Monitoring system

90. Programmable controller with integrated facility of control and data

acquisition system for monitoring of plant parameters along with

programmable logic control feature of meeting requirement of sequential

starting/stopping of drivers, plant interlock and protection has been

conceived.

91. DAS, DDC, and PLC functions are generally envisaged as an integral

system to be performed by the CPU of the programmable controller.

2.8. Project Utilities

92. The utilities and auxiliary service of the proposed cement plant shall

comprise the following.

2.8.1. Compressed air system.

93. Compressed air to be supplied to the following equipment:

All pulse jet just filters.

Packing machine.

Cement mill water spray system.

Girth gear spray lab system

Pneumatic air-seals, pneumatic operated valves etc.

Process instruments and control as applicable.

94. Centralized compressed air system has been considered for the plan.

Three nose (2 working & 1 stand by ) none lubricating, reciprocating

horizontal, balanced opposed water cooled compressor has been

considered.

95. Compressor shall be designed for continues duty operation. Necessary

Silencer to be provided to reduce noise during depressurization of the

vessel. Each compressor shall be provided with dedicated air drying

plant.

96. The dryer shall be latest design refrigerant type. Air coming out from

drier have a dew point above 4000C.. Major transfer point shall be

provided with invertible bag-filtered tarrest the dust nuisance.


Page 29

97. Brief specification of the compressor proposed for the project shall be as

follow:-

Nos. : 3 ( 2 W & 1 SB

Type : Reciprocating, non lab

Free air delivery : 12N m3/min.

Discharge pressure : 8kg/c m2

Type of air drier used : Refrigerant type

Capacity of air drier : 12N m3/min. ( W &1 SB)

2.8.2. Inplant laboratory and quality control.

98. The Plant laboratory is presently equipped to carry out various tests on

cement raw materials e.g. Limestone, iron ore, clay, clinker & gypsum

essential for sustained production of quality product ( cement ) as per the

adopted standard.

2.8.3. Maintenance workshop

99. A full flagged self sufficient maintenance workshop has been provided

for day to day maintenance of the plant equipment and the same is

sufficient to cater the plant requirement even after expansion

2.8.4. Fuel

100. Petcoke and coal will be used as a fuel in this project for providing the

necessary thermal energy for conversion of raw materials into cement

Bothpetcoke and coal will be transported to Jammu railway yard by box-

type wagon. Thereafter, the same will be transported to the proposed

projected site by road transport. The source of the coal will be from the

collieries of Bengal and Bihar.

2.8.5. Water Supply and Distribution(Water Balance to be provided)

101. The infrastructure facility for supplying water to the proposed location of

Cement Plant is available as sufficient quantity of underground water is

available. This water can be utilised by existing bore-well. The water IS

kept in a ground reservoir of capacity of 500 m3/day and from this

reservoir a distribution network takes water to various areas.

2.8.5.1 Industrial Water.

Mines

- Drinking water : 0.25m3/hr

- Car washing, Sprinkling : 1.0m3/hr

- Sub total : 1.25m3/hr

Cement Plant

- Drinking water : 1.3m3/hr

- Including colony

- Colony : 4.5m3/hr


Page 30

- Process water cement mill : 3.5m3/hr

- Sub-total : 8.3m3/hr

Consumption in laboratory : 1.0m3/hr

Workshop, air conditioning, etc.

2.8.5.2 Cooling water

Raw Mill bearing, gearbox, : 40m3/hr

mill lubrication.

Cement mill gearbox, bearing and : 45m3/hr

HES gearbox.

Pyroprocessing including kiln drive : 25m3/hr

Gearbox, supporting rollers, etc.

Air compressors : 10m3/hr

- Sub total : 120m3/hr.

Make up water for cooling water : 12m3/hr

@ 10% of cooling water

-Total consumption : 20.05 m3/hr

In mines and names plant i.e about 480m3/hr

Excluding firefighting water.

102. To cater the need for the mines and the cement plant, bore well

pumps (2nos ) shall be installed. The water will be pumped and stored

into a ground water reservoir with a day storage capacity. Further

distribution will be done through circulating pumps and separate

overhead tank shall be installed on roof of respective building. Return hot

water shall be collected into a pit and shall flow to the return hot water

tank by gravity. Further cooling may be done in spray pond and goes

back to the its tank for further distribution.

103. Drinking water shall directly collect over a drinking water storage

overhead tank for gravity distribution of water to various consumption

points.

2.8.6. Power

104. The power required for running the cement plant and its auxiliaries can

be obtained from the PDD Substation located at a distance of 3.5 Km

from the proposed plant site. A 33 KVA line is to be drawn from the

above source and can be connected to the transformer of the proposed

cement plant. Thereafter, necessary distribution of power can be thought

of as per the electrical load requirement of the different sections of the


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proposed cement plant. The total power requirement for the 3500 TPD

cement plat as envisaged now is about 15 MVA’s

2.8.7. Other facilities

105. Other facilities such as school, housing, bank, police station, fire fighting

facility, medical service etc. are available within a stretch of 5 Km from

the plant site. It will be necessary for the project to provide some basic

infrastructure facilities to their staff, workers and their families.

2.8.8. Employement Generation:

106. By taking the above factors in consideration, the main-power

requirement has been estimated. The summary is given below:-

Quarry (Through Contract) :200

Administration : 50

Production :150

Maintenance : 150

Others : 50

Sub-Total :------

Total (direct and Indirect) :600

2.9. Environmental aspects

107. Cement industry is classified as a pollution – prone industry by

International Funding Agencies with the potential to cause environment

problems if proper mitigation measures are not taken.

108. Clinker and cement manufacturing plants pose environmental hazards to

the land, vegetable, atmosphere and inhabitants within the vicinity of the

factory. Most of these environmental hazards have been identified and

measures taken during the design of the plant to minimize discomfort,

inconvenience and ill health to the factory workers as well as the local

people. The main identified areas of degradation land pollution are as

follows.

i) Land degradation due to mining activities.

ii) Noise hazards associated with ball mills.

iii) Hazards from toxic and corrosive exhaust gases from the kiln

especially toxic gas like carbon monoxide ( CO ), corrosive gas

like sulphur dioxide ( SO2 ).

iv) Emission of cement dust.

2.9.1. Land Degradation

109. Limestone deposit at the proposed plant location will be mined by the

open cast method. By this method the land will be stripped of its

vegetable and underlying to soil called overburden in order to get to the


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limestone layer. In order to minimize the land degradation, deforestation,

overburden disposal and water pollution adequate and suitable

measures shall be considered during the conceptual design of the plant

2.9.2. Pollution by effluent gases

110. The main pollutants is exhaust gases in a clinker plant are gases from

the combustion of the residual oil and dust from the kiln operation. The

exhaust gases include carbon dioxide expelled from carbonates of

calcium and magnesium of the raw meal during calcination of clinker and

nitrogen from the theoretical air needed to provide the oxygen for

burning the fuel.

111. The combustion therefore gives out carbon dioxide predominantly from

the combustion of carbon, a little water vapor from the combustion of

hydrogen and some traces of sulphur dioxide from the burning of

sulphur. From the above, the effluent gases contain mostly carbon

dioxide from decarbonization and from combustion, water vapor,

nitrogen and traces of sulphur dioxide. Except for the sulphur dioxide,

the rest are not nuisible, especially in a rural area. The sulphur dioxide

is nuisible. It picks up water from the atmosphere to from sulphurous

acids, a corrosive acid responsible for corrosion in roofing sheets and

metallic installation. Design of the plant has taken care of this problem.

2.9.3. Sulphur dioxide in the ambient

112. Based on the daily production of 600 tons and maximum percentage of

sulphur in the fuel as 0.3% an attempt is made to calculate the possible

amount of sulphur dioxide in the kiln effluent gases and to establish its

acceptability in line with EPA norms.

113. From the above calculate, it can be concluded that the possible amount

of sulphur dioxide which may be emitted by the kiln exhaust ( 25/m 3 )

is within the acceptable level of EPA norms of up to 80 u/m 3 in an

industrial area for one year.

114. There is also the possibility of burning carbon to carbon monoxide, which

is very toxic, instead of carbon dioxide. This occurs, when burning

conditions are not well controlled, especially when there is not enough

oxygen or when the burning zone temperature reduces suddenly, or

when there is too much dust in the clinkerisation zone.

115. Ducts will be provided at vantage point to draw exhaust gases from time

to time to analysis in the laboratory to make sure that they are free from

suspended particles and nuisible gases.

116. Continuous carbon monoxide and excess oxygen analysers will be

provided to facilitate the control of CO formation. To achieve this, the

combustion on fuel should be carried out in the presence of a minimum

of 1.5% excess oxygen in the kiln outlet to ensure complete combustion.


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117. Moreover, apart from environment pollution, the carbon monoxide is very

nuisible to the operation of the kiln itself, ( 1 ) it is endothermic i.e. it

reduce the temperature of the zone and (2) it can cause explosion in the

electrostatic filters and in the cyclones. The operation will strictly

monitored to check the production of carbon monoxide.

2.9.4. Air pollution

118. Control of dust emission into atmosphere shall be achieved by the

following facilities provided for the plant and machinery of the project:-

Designing the production system so as to generate minimum dust and

arrest the dust at its source. All storage facilities of material like

limestone, raw meal, clinker, cement etc shall be in the form of RCC

silos completely covered to completely eliminate dust emission at

these storage points.

Minimizing the number of material transfer points and maintaining

optimum height of fall of materials.

Providing high efficiency pulse-jet bag filters at material transfer points

including mill feed hoppers. Special bag filters shall be designed to

take care of the condensation problem which leads to bag filter

choking particularly in J & K.

Covering the belt conveyors including walkways.

Providing suitable dust collecting equipment either pulse-jet bag filters/

glass bag houses or ESP for process exhaust gases.

Providing metal roads inside the plant.

Efficient cleaning of plant internals using vacuum cleaners.

119. Control of emission of toxic gases can be achieved to fulfill the prevailing

pollution control norms by:-

Using latest technology and equipment in order to minimize generation of various toxic gases.

Reducing the concentration of pollutants like NOX and SOX in the flue gas.

Reduce CO formation by use of calciner.

120. For the project, the emission standards will be so formulated as to limit

dust concentration in exhaust gases from the following source points

within a maximum limit of 40 mg/ Nm3 of exhaust volume. This would be

one of the lowest emission levels in the country.

Limestone silo,Raw meal silo, clinker stockpile and cement silos by bag – filters.

Raw mill and cement mill hoppers by bag-filters.

Raw grinding and kiln exit gases by glass bag filter.


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Clinker cooler exhaust by ESP.

Raw and cement mill and cement packing plants by bag – filters.

2.9.5. Water pollution

121. Because of the technology of cement production, the degree of water

pollution caused by waste water is relatively low. The major pollutants

are lubricating oil, grease and dust in the water. Care will therefore, be

exercised to design feeding and draining of water for all machinery on

close circuit basis so that no waste water is discharged from the plant

during normal operation and the same is rescirculated after proper

treatment.

2.9.6. Noise pollution control

122. Noise has been defined as “any undesired sound” unwanted sound” and

thus is concept of feeling having adverse effect on human health. The

unit of noise measurement used in scientific studies is a “decible” ( dB)

and the prescribed norms for occupational exposure for cement plant is

90 dB in 8 hours period. For any noise control programme, the basic

elements of noise – source, path and receiver must be attended to.

123. In a cement plant, the main source of noise generation are mills, fans,

blowers etc. while selecting the main plants and equipment for the

proposed cement plant, installation of alternative low noise generating

equipment shall be preferred, all drives and transmission mechanisms

shall be put under enclosures. Persons working in and around the noise

generating spots shall be provided with ear plugs/ear muffs. In addition

to the above, wherever possible, the travel path of noise shall be

obstructed by providing walls and green belts between the source and

receiver.

2.9.7. Safety precautions.

124. In compliance with international standards on safety, a unit will be

created under the production division to see to the implementation of all

safety measures in the factory. The unit will be headed by an inspector

who will go round and ensure that all safety devices and measures put in

place are infact. This unit shall be responsible for the supply of protective

working clothes, safety helmets and safety boots to all personnel in the

production division. It will also supply ear and nose masks to personnel

at the raw meal mill and the cement mill, as well as safety goggles,

asbestos aprons and asbestos gloves to personnel at the preheated and

kiln outlet. Welders will be provided with face masks and goggles and

electricians with insulating gloves. The safety inspector will see to it that

all workers wear these safety aids.


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3. SITE ANALYSIS

3.1. The Site Location

125. Trumboo Industries Pvt. Ltd. is planning to set up a 3500 TPD cement

plant at Khrew Dist : Pulwama located in the north-west side of Srinagar,

15 km away from it and on the western side of Jammu-Srinagar National

Highway from where the plant is 10 km away and is connected by a

moderately (20 ft.) wide kachha road.

S.No. Particulars Description

1) Village, Tehsil, District, State Near kherw,Distic Pulwama

2) Longitude and Latitude 3404’34.14”N

74058’35.5”E

3) Land 40 Hectares Required

4) Land status Barran Land

5) Most Populated area Khanmao 3.28km(SW),Wuyan,5.63km(SSW),Andorssa,7.14km(S)

6) Nearest High Way NH-1A,8.27 km(South WEST)

7) Nearest Village khrew

8) Nearest Town Pulwama

9) Nearest Air Port Srinagar

10) Location of National parks

/Wildlife Sanctuary within 10 km radius of the project site

There is a Dachigam National forest at a distance of 2.58 km(North)

3.2. Salient Feature Of The site:

126. The important factors which influence its selection of a project site are as

below.

3.2.1. Sources of Raw Materials

Availability of suitable Land

Road and rail linkage

Transport facility for finished products viz. Cement

Availability of fuel, power and water.

Availability of skilled Manpower.

Nearness to market for finished goods viz. Cement.

Social infrastructure viz. Banks, post office, schools, markets, community centre, housing etc.

3.2.2. Availability of suitable land

127. During the site visit, availability of land for plant site was seen and found

that enough land is available for the plant close to the limestone deposits

at Bajnar location.

3.2.3. Road linkage and transportation of cement


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128. The proposed location is connected with National Highway between

Jammu and Srinagar by a link road of 10 Km stretch.

129. Considering the above factors, the site for the project has been located

and selected in the village Khrew, Dist: Srinagar which is 30 km away

from Srinagar and at a distance of 15 km away from National Highway

connecting Jammu and Srinagar.

3.3. Layout Of the Plant

130. The layout of the facilities in the Cement plant has been planned,

keeping in view the technological concept in cement plant operation.

Following are the basic criteria for preparation of the respective layouts.

131. Direction and flow of materials, both input and output.

Directions of incoming power supply.

Ground contour of the plant areas.

Compactness of the plants keeping in view enough space for easy

movement of men, materials and plant machinery.

Provision for expansion of the plant in future

Direction of prevailing wind

Nearness to colony

3.4. Layout of the cement plant

132. The layout of the proposed cement plant shall be prepared after

finalization of main machinery and equipment and keeping in

consideration of the existing plant facilities. The plant layout shall also be

based on the soil investigation report and contour survey.


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4. PROJECT COST AND SCHEDULE

4.1. Project Implementation:

About 40 months after finalization of investment.

4.2. Estimated cost of the project and financial indicators.

Sl. No.

Cost Head Estimate in (Rs.)

Estimate in (Lacs. of Rs.)

% of Total

1 Land and Site Development

100,000,000 1,000.00 2.10

2 Building & Civil Works 1,019,000,000 10,190.00 21.44

3 Plant and Machinery 2,593,400,000 25,934.00 54.57

3.1 Foundation 8,300,000 83.00 0.17

4 Technical Know-how Fees

7,500,000 75.00 0.16

5 Miscellaneous Fixed Assets

100,000,000 1,000.00 2.10

6 Preliminary & Capital Issue Expenses

5,000,000 50.00 0.11

7 Pre-operative Expenses

16,173,600 161.74 0.34

8 Start-up Expenses 5,441,926 54.42 0.11

9 Sub-Total (1 to 8) 3,854,815,526 38,548.16 81.11

10 Contingency 150,000,000 1,500.00 3.16

11 Sub-Total (9 to 10) 4,004,815,526 40,048.16 84.26

12 Interest during Construction

500,000,000 5,000.00 10.52

13 Margin Money for Working Capital

248,046,000 2,480.46

5.22

14 TOTAL PROJECT COST

4,752,861,526 47,528.62 100.00

Financial Indicators. (All Figures in Rs Lakhs)

Clinker Production: 3,500 TPD IRR 33.30%

No. of Working days per Year

330 Rs. in Lacs

Annual Production of Cement :

1,155,000 T LOAN Rs30,893.60

Debt: Equity 1.86 : 1 EQUITY Rs. 16,635.02

Interest p.a. (Long Term)

10.50% TOTAL Rs.47,528.62

Interest p.a. (Short Term

11% D:E 1 .86: 1

Per ton investment cost

4,115 DSCR 7.36


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5. INDUSTRIAL POLICY 2004

1.0 Introduction

1.1 Despite attractive fiscal incentive under the State’s Industrial Policy (1998-2003),

the rate of growth of industrial sector could not be accelerated primarily on account

of the disturbed conditions in the State. Competition from cheaper imported

products, coming into the country as a result of the policy of globalization and

economic liberalization pursued by the Government of India, has also forced many

local SSI units to down their shutters. With the problem of unemployment,

particularly of the educated, being high, the Industrial Policy 2004 has been

evolved keeping in view the experience gained in the last five years and some new

positive elements that have entered the scene.

Duration 1.2 Industrial Policy 2004 will remain in operation from 1st February, 2004 until 31-03-2015.

2.0 Advantage J&K Some specific advantages enjoyed by the State are: 2.1 Introductions of incentives for industries based on the package for the North-

Eastern State in Jammu & Kashmir by the Government of India has created a

new window of opportunity. This package of incentives is attached at

Annexure - I.

2.2 Centrally sponsored schemes available for development of infrastructure and

common facility Centres are fully utilized to strengthen and broaden the

infrastructure base of the State in general and for industries in particular.

2.3 Refinance facilities are available from the prime leading financial institutions.

2.4 Infrastructure in the State for handicrafts and handloom sectors is being

strengthened to further hone the already superb craftsmanship available in

the State by providing professional assistance in design, product

development, quality control, marketing and human resources development,

with emphasis on active private sector participation.


Page 39

2.5 The state is endowed with rare agriculture and horticulture germplasm. The

State has three distinct agro-climatic zones, each with its characteristic

products, thus offering a wider choice for establishing agro-industries. With

57% of apples and 92% of walnut produced in the country being from the

State, besides a host of other horticulture produce such as almonds, pears,

plums and cherry, the availability in terms of quantity and quality of a wide

range of agricultural and horticultural products signifies good potential for

value addition through food processing.

Besides, the state is ideally suited for growing aromatic and medicinal plants

that can be the raw material for a wide range of essential oils and herbal

medicines. A special package of incentives has been offered for this sector by

the Ministry of Food Processing, Government of India. The State Government

has also kept this sector in its thrust area.

2.6 The State is endowed with rich mineral wealth of excellent quality, Limestone,

gypsum, quartzite, dolomite, magnesite and bauxite, besides sapphire are

available in the State.

2.7 Technical, managerial and other knowledge based resources available in

government departments,universities and professional colleges, R&D

institutions like the Regional Research Laboratory of CSIR can be networked

and utilized for the growth of the Industry.

2.8 There is a large scope for the commercial banks to push up investment within

the state. The current credit deposit ratio is much lower compared to the

national average.

2.9 There is a clear recognition by the state government of the fact that the

industrial sector has a prominent role to play in its economic development and

is an effective vehicle to reduce pressure on the strained employment

opportunities in the government and public sectors.

2.10 A perceptible improvement in the law and order situation, generated by the

sincere desire of the people of the State for peace, has created a favourable

atmosphere for investors. This has also created a new hope in the local

educated youth.


Page 40

2.11 The state has a long history of excellent labour-management relations;

mandays lost due to labour problems are minimum.

2.12 A wide network of roads, telecommunication and other infrastructure existing

in the State is constantly improved. Railhead at Jammu will be extended to

the valley of Kashmir by 2007.

3.0 Objectives The primary objectives of the Industrial Policy 2004 are : i) To achieve sustainable industrial development in all regions for increasing the

rate of growth, value of output, employment, income and overall economic

development of the State.

ii) To strive towards balanced economic and social development in all regions of

the State by promoting industrialization particularly of the industrially

backwards areas;

iii) To encourage and sustain the cottage and tiny industrial sector which, with

law investment, is able to provide employment to a large number of people in the

state.

iv) To create a supportive environment with transparency and easy access in

information, technology and financial resources.

v) To revive potentially viable sick industrial units so as to put to optimum use

the capital and other resources already employed in such enterprises.

vi) To promote the growth of thrust and export-oriented industries and encourage

high-tech and knowledgeable based industries including information

technology.

vii) To take necessary steps in the field of Human Resources Development to

make available skilled / technical manpower as per the needs of industry.

4.0 Approach and Strategy 4.1 The strategy for achieving the objectives, and the main elements, of the

Industrial Policy 2004 are:

i) Providing improved infrastructure and support services, with emphasis on

regular and Uninterrupted power supply.

ii) Attractive incentives of the Government of India and of the state government.


Page 41

iii) Single window clearance system for power, pollution control, land allotment

and registration of industrial unit.

iv) Closer interaction with financial Institution and commercial banks, to ensure

regular and adequate flow of finances to the industrial sector.

v) Rehabilitation of potentially viable sick industrial units.

vi) Improving competitiveness of existing industrial units by facilitating

modernisation aimed at enhancing productivity, energy efficiency and better

environment management.

vii) Enabling manufacturers of quality consistent products to augment their sales

within and outside the state by brand promotion.

viii) Reorienting Industries and Commerce Department.

ix) Export promotional measures to augment export of products of the state

outside the country.

x) Permanent Grievance Redressal System to remove bottlenecks in import and

export of products to and fro the state.

xi) Environment protection, to conform to state, national and global regulations.

xii) Entrepreneurship development in the state, to provide opportunities to

educated unemployed.

xiii) Encouraging Research & Development.

xiv) Focussing on thrust areas with natural advantages in the state and facilitating

large investments in prestigious projects.

4.2 Improved infrastructure and support services : The government will strive to improve general infrastructure of the state. In respect of

infrastructure for industries, the policy emphasizes the following :

i) Development of modern industrial areas and estates, growth centers,

Integrated Infrastructure Development Centers (IID) etc. will be done in a time

bound manner. These focal points of Industry will meet all the basic

requirements of a competitive industrial environment. An action Plan with

specific implementation model and time frame will be adopted.

ii) Operational management of the major industrial estates will be rationalized,

involving local Industrialists through a suitable local self managed model both


Page 42

for development works and Management of the estates including regulation of

power and water supply.

iii) The State Government will encourage private sector participation in

infrastructure development and such private sector participation will be treated

as an industry for the purpose of availing incentives. The Government will also

facilitate acquisition of land for such private sector initiatives.

iv) Efforts will be made to ensure that the power supply within industrial areas,

estates, IIDCs, etc. is regular, reliable and of good quality.

v) Private sector investment in generation and distribution of regular power

supply in industrial areas, estates, IIDCs etc. will be actively encouraged. The

government will provide necessary support for such ventures on a case to

case basis to assure their sustainability.

vi) Micro-hydel projects are already open for private sector investment. A

separate policy on the subject has been announced and implemented by the

Power Development Department.

4.3 Incentives for Industries

Incentives for industries provided by the Government of India are presented at

Annexure I. A revised package of incentives, offered by the state government, is at

Annexure-II. Industries availing the incentives must always strive to plough back

resources to constantly upgrade products and productivity, design and quality, so

that after the incentives cease, they are able to survive on their own

competitiveness.

4.4 Single Window Clearance System

With the objective of facilitating a new entrepreneur in getting necessary

clearances within a short time, a Single Window Clearance System, for registration

of the Industrial Unit, allotment of land, clearance of pollution control Board for

commencing construction and certificate of power availability, at the State and

District levels, has been set up. A separate notification in this regard will be issued.


Page 43

4.5 Institutional/Commercial Bank funding

Industrial Policy 2004 recognizes that Financial Institutions/Commercial Banks

have to play an important role in the industrial development of the State. An

environment has to be created to arrest the present trend of flight of capital from the

State. The procedures presently followed have not withstood the test of time. There

have been glaring instance of delay and under-financing of projects resulting in cost

and time over run. It will also be necessary to strengthen the state owned Financial

Institutions. Moving in this direction, the government will adopt the following course

of action :

i) The present arrangement of credit flow monitoring through State Level

Banker’s Committee (SLBC) and State Level Inter Institutional Committee (SLIIC)

forums will be actively utilized.

ii) State owned development financial institutions shall be reoriented to facilitate

availing of refinance facilities from national level institutions optimally; and,

encouraged to raise finance from the market.

iii) Divisional and district level co-ordination committees will be constituted to

monitor expeditious settlement of the loan cases within prescribed time limit.

4.6 Rehabilitation of Sick Units

An enormous amount of capital is locked in sick/closed industrial units in the

form of infrastructure and investment. Though industrial sickness is a wide spread

phenomenon, its impact is comparatively high in J&K. The initiative for rehabilitation

of sick units should primarily come from the concerned industrial unit, financial

institutions and the commercial banks, the government playing a catalytic and

supportive role. Government Order No. 47-Ind of 1999 dated 10-02-1999, currently

in vogue, will continue. Besides, the Government will separately announce an debt

relief package too. This sick industrial units shall have the option of taking advantage

of either of the two packages.

4.7 Improving Competitiveness - Modernization


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Industrial units operating in the State must realize that with globalization and

economic liberalization, the inflow of cheaper and better quality products into the

country and eventually into the state cannot be halted. In order, therefore, to

encourage such industrial units as are desirous of modernizing themselves with a

view to increase productivity, energy efficiency and environment protection, the

capital investment subsidy of the state will be extended to them all over the state.

The procedure for availing this incentive has been separately prescribed.

4.8 Brand Promotion

With increasing competition in the market, manufacturers of quality consistent

consumer products can sustain themselves only if they adopt an intelligent marketing

strategy and build a brand of their own. In order to encourage efforts of such

manufacturers who are desirous of developing and propagating their own brands

within and outside the state, the government will extend assistance to them. Details

are provided in the package of incentives of the state government.

4.9 Re-Orientation of Industries & Commerce Department

In the liberalized economy, it is imperative that the capacity of Industries &

Commerce Department and related PSUs is strengthened to meet the challenges of

the new era. In the area of information technology, the process of computerization

will be accelerated at the cutting edge level. Accordingly, the computerizations of

Directorate of I&C will be further expedited with a view to not only provide all relevant

policy and information on the web site but also data relating to status of applications

for registration, incentives etc. An investor and industry friendly atmosphere will be

created.

4.10 Export Promotion

Exports have come to be regarded as an engine of economic growth.

However, the share of J&K in the overall exports of the country is very low, limited

mostly to handicrafts and dry fruits processed by the SSI sector. The State has a

vast potential for exports, both in traditional and nontraditional items.

4.11 Permanent Grievance Redressal System


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In the past, despite provisions in the Industrial policy, there have been many

instances of consignments of raw materials, capital goods, fuels, etc. being detained

in the entry point of the state, often resulting in delays and payment of fines and

penalties. With a view to ensure that the industrial policy is honoured in letter and

spirit, an order will be issued by the Finance

Department that no consignment for industries, covered by the industrial

policy, will be detained at the entry point for more than 24 hours. In the event of any

doubt, a notice will be issued by the concerned authority to the firm outlining the

objections but he consignment will be instantly released. A Permanent Grievance

Redressal Committee, consisting of Director Industries and Commerce,

Commissioner Sales Tax and Commissioner Excise, to be set up by the Finance

Department, shall meet once every fortnight to consider all such notices and pass

orders which shall be final and binding on all concerned. In emergent situations,

such meetings could be called at shorter notice too. This procedure is expected to

check alleged arbitrary actions at the entry point of the State.

4.12 Environment Protection Pollution Control and environment protection will be accorded high priority. The

Pollution Control Board shall give necessary clearances to new units to start

construction only after satisfying itself that the required pollution control measures

have been included in the project by the promoter. The State Government will assist

setting up of Common Effluent Treatment Plants and providing sites of solid waste

disposal etc. availing of the existing schemes of the Government of India as well as

the States own resources. Procedures for environment clearances will be

streamlined to achieve speedy disposal. Environment friendly projects will be

accorded greater priority. Incentive for procurement of pollution control devices has

been provided in the state government’s package.

4.13 Entrepreneurship Development Lack of entrepreneurial skills of the local youth has been identified as an impediment

for sustained industrial growth, J&K Entrepreneurship Development Institute


Page 46

(J&KEDI), a society registered under the J&K Societies Registration Act, has

recently been activated to provide entrepreneurship training to youth of the state.

Universities will be encouraged to include comprehensive entrepreneurial education

in the course curriculum both at the undergraduate and postgraduate levels in the

state. The state will encourage setting up of training institutions in the private sector,

in the areas of Information Technology, Biotechnology and Communication.

Educational and research institutions of international standards related to

business/industry shall be provided land in industrial parks/growth centres at a

concessional rate of 50%.

4.14 Thrust Areas and Prestigious Projects The following industries will be the Thrust Areas of the government:

1. Electronics (integrated circuits and micro assemblies)/computer hardware and

software.

2. Food processing including agro-based industries (excluding conventional

grinding/extraction units)

3. Floriculture

4. Handicrafts.

5. Leather processing and leather goods.

6. Sports goods, articles and equipments for general physical exercise.

7. Forest based industry.

8. Processing of aromatic and medicinal plants and herbs.

9. Pharmaceuticals including bulk drugs.

10. Silk reeling, weaving, processing printing and made-ups, Yarn and yarn spun

from silk waste.

11. Cutting and polishing of stones, gems and jewellery.

12. Precision engineering.

13. Wool processing, Spinning, weaving and finishing, woven fabrics of wool.

14. Woven fabrics of cotton.

15. Industries related to the promotion of tourism e.g., units manufacturing camp

equipments, fibre boats etc. souvenirs for tourists.

16. Knowledge industry, including information technology, bio-technology etc.


Page 47

17. Auto ancillaries.

18. Exploration of minerals.

19. Green houses (only Ladakh)

The government may add new industrial activities to the thrust areas from

time to time. The industrial projects in these areas will be accorded priority in the

matter of allotment of land, sanction of power and other clearances as also in the

matter of grant of incentives. With regard to Prestigious projects, with investment

above Rs.25 crores, the government may consider special package of incentives, to

be documented in the form of a MOU, on a case to case basis, on merits.

Notification of a prestigious project shall be made by State Level Committee – I for

granting Capital Investment Subsidy.

4.15 Research & Development

Encouraging Research & Development (R&D) in important economic sectors

and transferring the results of these to the industrial sector are the needs of the hour.

This is particularly necessary in agriculture, forest mining and mineral sectors,

medicinal and herbal plants which provide a substantial base for value addition.

Design cum Resource centres shall be set for supporting Handicrafts/Handloom

sector. Central government assistance for such purposes shall be fully availed.

National level organisations of excellence shall be pursued to provide support for

these programmes.

5.0 Implementation Effective and efficient implementation of the policy must be ensured. In order to

achieve this and also to provide for a regular interaction between the government at

the highest level and the industry at large, the government will set up an Advisory

Committee for Industries with the Hon’ble Chief Minister as the Chairman. Besides

the Hon’ble Deputy Chief Minister in charge of Industries and Commerce and

Hon’ble Minister of State for Industries and Commerce, this committee will consist of

all Principal Secretaries in charge of economic departments such as agriculture,

consumer affairs, environment, forests, finance, information technology, planning

and power development. Representatives of Chambers of Commerce of Industry

and Federations of Industries of Jammu and Kashmir Divisions and also senior


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officials of the Ministry of Commerce and Industry, Government of India, will be

invited to join this committee. Principal Secretary I&C will act as the Member

Secretary of the Committee. This committee will meet at least once in three months

and provide a forum for timely discussion on major issues agitating the industry and

arriving at prompt decisions, a dire necessity in these days of high level of

competition among the states of promoting industrialization.

6. Conclusion

It is earnestly hoped that the Industrial Policy 2004 will receive the support of

the existing industry of the state as well as potential entrepreneurs. It is also

expected that this will be able to attract entrepreneurs from other parts of the country

and also from other countries. The government will endeavour to implement the

policy in right earnest and do all it can to make the atmosphere for investment in the

industrial sector of the state inviting and invigorating.

PACKAGE OF INCENTIVES*

1.0 Definitions.

Under this package unless the context otherwise requires : i) “Capital Investment” shall mean and include investment on land/premium on

leased land, cost of all civil engineering works including buildings and sheds, cost of

plant and machinery, cost of installation of plant and machinery, control panels,

quality control equipment, cost of consultancy during the execution of project and

cost of technical know-how.

ii) “Effective steps” means one or more of the following steps :- a) that 10% or more of the capital issued for the industrial unit has been paid up.

b) that any part of the factory building required for manufacturing activity has been

constructed.

c) that a firm order has been placed for any plant and machinery required for the

industrial unit.

iii) “Existing unit” means an industrial unit, which had gone into trial/commercial

production prior to 01-02-2004.

iv) “Fixed capital investment” means investment in land, building, plant and

machinery.


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v) “Government” means Government of Jammu & Kashmir.

vi) “Industrial Backward Blocks” means the blocks with boundaries to be notified

by the State

Government.

vii) “New industrial unit” means an industrial unit which has started/gone into

trial/commercial

production after 31-01-2004 and is formally registered.

viii) “Prestigious unit” means an unit having capital investment of Rs.25 Crores or

above and

declared as Prestigious unit by the State Level Committee - I constituted for

sanctioning Capital

Investment Subsidy.

ix) “Substantial Expansion” means an existing unit which increases its installed

capacity, with prior

approval of competent authority, in terms of the relevant Government of India

notification.

2.0 Eligibility

i) All existing and new industrial units unless otherwise explicitly provided in this

package and subject to fulfillment of such requirements as may be specified

by the Government from time to time shall be eligible for the incentives.

ii) Provided that wherever an identical scheme of Government of India exists,

the unit would draw the incentives from Government of India scheme first, if

eligible. The balance amount of the incentives, if any, under the State

Government scheme would be sanctioned if otherwise eligible under the state

scheme.

iii) The incentives under this policy are provided under the discretionary powers

of the State

Government. The State Government may decide to amend, alter, delete or

revise any or all of the incentives notified under this policy and no claim on

account of such a decision will be entertained.

iv) The Industrial Policy shall cover all the new industrial units that may be

established in


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the State. In respect of units where the promoter may have taken effective

steps for implementation of the project as on 01-02-2004 and as such may

claim to avail incentives under the old package which was in force

immediately before announcement of this policy, he will be given option to do

so. However, such option shall have to be explicitly communicated to the

Director, I&C within 3months of announcement of this policy. This option shall,

however, be not applicable to tax related incentives, for which the new policy

will apply.

3.0 For achieving the objectives of the industrial policy, the State Government extends the following incentives:-

3.1 Land allotment The government shall allot land on long lease of 90 years in the industrial estates and developed areas on first come first serve basis. In case of large area requirements, land may be acquired in specific locations selected by the entrepreneur, and allotted on lease. a) The allotment of land/industrial plots/sheds and flats shall be on lease basis for a period of 90 years. b) The rent charged for the period of lease shall be invested in maintenance of facilities in the industrial estate. In case of lands outside the industrial estates, where no maintenance is required to be done by any Government Agency, only a nominal lease rent shall be chargeable if the entire expenditure on the cost of land and its development has been incurred by the promoter.

3.2 Capital Investment Subsidy (CIS) and Financial Support on Investment : 1. Government of India has announced a new scheme of capital investment

subsidy for the State of Jammu & Kashmir. The existing Capital Investment

Subsidy (CIS) of the State government shall stand replaced by the

Government of India scheme for CIS.

2. In the Industrially Backward Blocks, which will be notified separately, the

existing state government scheme would continue. However, in such Blocks

the industrial units will first draw CIS of the Government of India scheme, if

applicable. Balance amount, if any, as per State Government scheme would

be sanctioned by the competent authority, if other-wise eligible under the state

scheme.


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3. In such locations (which do not fall within backward blocks) where the CIS

scheme of GOI does not apply, the State Government will extend the benefits

as per the norms of Central Scheme.

4. The CIS applicable to the notified backward blocks of the State is as

follows :

a) CIS shall be available if the item of manufacture does not figure on the negative

list.

b) CIS shall be available to the new SSI, Medium and Large units, @ 30% of the

capital investment subject to upper limit of Rs.30 lakhs.

c) In case of prestigious unit, the upper limit of CIS shall be Rs. 60 lakhs.

d) In case of the thrust areas, the upper limit of the CIS shall be Rs.45 lakhs and Rs.

75 lakhs in case the unit also falls in the prestigious category.

5. In areas where CIS under the central scheme is available the Government

does not want to place the thrust area units, prestigious units and prestigious

units in thrust areas in a disadvantageous position. In such areas if the eligible

amount of CIS under the central scheme exceeds Rs.30 lakhsfor an industrial

unit, which is maximum limit under that scheme, the State Government

shallprovide the amount exceeding Rs.30 lakhs subject to a ceiling of Rs.15

lakhs, Rs.30 lakhs and Rs.45 lakhs, in case of thrust area units, prestigious

units and prestigious units in thrust areas,respectively.

6. In the entire state, 75% subsidy shall be allowed on cost of construction of a

captive tube-well or building a captive water lifting plant incurred by a

prestigious unit in any of the thrust areas. The maximum amount of subsidy

shall be Rs.22.50 lakhs. This shall be in addition to the financiallimits for CIS

prescribed above.

3.3 Modernisation of existing units

With a view to encourage modernisation of existing small scale industrial

units, to enable it to achieve higher productivity, energy efficiency and better

environment protection, and thus improve its sustainability in the competitive

environment, capital investment subsidy of the state government will be applicable to


Page 52

such units all over the state subject to a limit of Rs.30 lakhs. Units availing incentives

under the definition of ‘substantial expansion’ shall not be entitled to this. Application

for modernisation must be submitted to the Director, Industries and Commerce, in

the prescribed form, obtainable from his office and only after the scheme is approved

by a committee consisting of Principal Secretary (Finance), Principal Secretary

(Planning) and Principal Secretary (Industries and Commerce), the applicant shall

commence work thereon. Approval and disbursement of the incentives will be done

on the same pattern as the CIS of the state government.

3.4 Brand Promotion

In order to help such manufacturers of consumer products who are in a highly

competitive market, the government will provide assistance to them in promoting

brands within and outside the state. The assistance will be in the shape of subsidy at

the rate of 50% of expenses incurred in the first year subject to a limit of Rs.20

Lakhs, 30% of expenses incurred in the second year, subject to a limit of Rs.

15lakhs and 10% of expenses incurred in the third year subject to a limit of Rs.10

lakhs. Application is prescribed form obtainable from the office of the Director

Industries and Commerce must be submitted prior to undertaking the activity. Such

applications shall be scrutinised by a committee consisting of the Principal Secretary

(Finance), Principal Secretary (Planning) and Principal Secretary (Industries and

Commerce), and only after the scheme is approved, the applicant may begin its

implementation, if the incentive is to be availed. A system of monitoring shall be

instituted and if the applicant deviates from the approved scheme, without prior

approval, the incentive will be denied to him and the moneys already paid to him

may be recalled at the discretion of the approving authority.

3.5 Pre-Investment Studies/Feasibility reports a) Project profiles shall be prepared by the Directorate of I&C, SIDCO and

SICOP and made available off the shelf to the promoters at a nominal price.

b) The promoters may get a project feasibility report prepared from J&K, ITCO,

SIDCO, SISI or any other agency as may be approved by the Director, I&C

from time to time. The expenditure incurred on such feasibility reports shall

qualify for 100% subsidy at the time of execution of the project subject to a


Page 53

limit of Rs.2.00 lakhs. The promoter may get a report prepared also from any

other specialist agency/reputed consultants with prior approval of Director,

I&C.

3.6 Power tariff/DG sets

Power tariff for the industrial sector is subsidised. The Power Development

Department shall revise and announce the tariff from time to time. Keeping in view

the policy of he government to encourage the development of industry in the State

and till such time as assured power supply is made available to industrial units 100%

subsidy shall be allowed on new DG sets form 10KW to 1000 KW capacity

purchased from reputed/standard companies subject to the maximum limit of Rs. 25

Lakhs. The subsidy shall be available to he unit after it has been verified that the DG

set has been actually installed.

a) The amount of subsidy on purchase of DG set shall be paid only through a

bank (or the concerned financing agency, if any) even if the promoter may not have

taken any loan for purchase of theDG set.

b) 50% of the amount of subsidy on DG set shall be paid on verification of

installation and the remaining 50% shall be paid after expiry of one year of

installation.

c) The DG set shall not be shifted from the State for a period of ten years

counted from the date of installation or to any other unit except with the approval of

the Director I&C. If the unit makes any such request to shift the DG set to outside the

State, the same shall be considered only in case the unit deposits the entire amount

of the subsidy availed of together with interest thereon at the prevailing rate of

interest on term loans.

d) The amount of subsidy claimed as part of Government of India’s CIS scheme

for this item shall be deducted from the amount to be calculated under the state

government scheme.

e) Government shall allow setting up of Captive Power Generating units and

also mini/micro power generating unit anywhere in the state, subject to obtaining

usual clearances required including from the State Pollution Control Board. There

shall be no electricity duty/state excise on generation of electrical energy through

such Power Generating Stations for a period of 25 years.The station may be set up


Page 54

by an individual promoter or a group of promoters and the energy thus generated

may be shared by them or sold to other consumer(s). In case the energy thus

generated is given to the State Government at the point of production, the promoter

shall be eligible to draw an equivalent amount of energy for his own bona fide

industrial purpose, from the PDD anywhere else in the State. If his requirement is

less than what is generated by him, the excess power can be sold to the state as

per the policy of Power Development Department.

3.7 Price /Purchase Preference i) Upto 15% Price Preference shall be available on the landed cost of the

product to the local SSI units, in all government purchases. The price preference

shall also apply in case of any goods purchased by the public sector

undertakings/boards purchased for their own non-commercial use.

3.8 Toll Taxes i) There will be no additional toll tax on the raw materials, fuel and

consumables, procured from outside the state by the existing or new SSI units fill 31-

01-2015 except for items brought on the negative list from time to time.

ii) There will be no additional toll tax on finished goods manufactured by the existing

or new SSI,Medium and Large units and sent outside the state upto 31-03-2015

except for items brought on the negative list from time to time.

iii) There will be no additional toll tax on the Raw materials, fuels, consumables

brought from theexisting new medium and large units upto 31-03-2015 except in

case of items brought on the

Negative list from time to time.

iv) There will be no additional toll tax on components, machinery, plant and other

equipments

procured from outside the state for building the factory, for a period of five years from

the date of registration of the unit in SSI, Medium or large sector.

v) There will be no additional toll tax on 100% export oriented units on the goods

exported under proper export documents from the state to any foreign country.

vi) There will be no additional toll tax on empty containers brought into the state

which are used for stuffing products of industry for export out of the state.


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3.9 Special Provision for Prestigious Units Prestigious units shall avail of full exemption from payment of GST (Till VAT is

implemented)/CST and additional toll tax untill 31-3-2015 or until such amount of

exemption reaches the levels of 150% of capital investment in the project whichever

occurs earlier. It may be clarified that negative lists issued for various tax related

incentives for medium and large industries shall also be applicable mutatis mutandis

to prestigious units.

3.10 Interest Subsidy i) The Government of India has announced a new scheme for Interest subsidy in the

state of Jammu & Kashmir. The existing incentive of Interest subsidy of the State

Government will be replaced by the Government of India scheme, except for existing

and any other new units which are not otherwise eligible for claim or interest subsidy

under the Government of India scheme.

ii) 3% subsidy shall be payable on the working capital facilities available from the

commercial banks to all existing units for the remaining period of their eligibility,

subject to the conditions prescribed, under the Government Order No. 202-Ind of

1998 dated 27-5-1998.

iii) This incentive will be extended to any new unit not covered by the Central

Government Package by the state Government, on the same terms as contained in

the Central Package.

iv) No interest subsidy shall be available on penal interest or on default payments.

3.11 Testing Equipment 100% Capital subsidy shall be provided by the Government on installation of Testing

Equipment, subject to a maximum amount of Rs.25 Lakhs and also restricted to

25% of the total capital investment if the cost of testing equipment exceed 25% of

the total investment provided that the same is installed within 31-3-2015.

ii) The incentive shall be disbursed only after the unit availing this incentive obtains a

national/ international quality mark.


Page 56

iii) To the extent incentive for such equipment is availed under the CIS scheme of

Government of India, deductions will be made from the amount due under the state

scheme.

3.12 30% Subsidy on Pollution Control Equipment 30% subsidy shall be extended for purchase of pollution control equipment subject to

ceiling of Rs.20.00 lac per unit and this will be in addition to the entitlement of CIS

unde G.O.I scheme if it exceeds Rs.30.00 lacs limit of CIS notified by G.O.I. If

subsidy on such equipment is availed under CIS notification of GOI, to that extent,

the amount shall be reduced out of the entitlement under the state scheme.

3.13 Interest Subsidy for Technocrats 5% interest subsidy on term loan shall be available for Engineering Graduate/MBA’s/postgraduates on term loan availed from financing institutions.

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