" > May, 2017 at 3:00PM -reg.

F. No.l-5

/

^2017-SDF

GovernmentofIndia

Ministry ofConsumerAffairs,Food&Public Distribution Department of Food&PublicDistribution

Room No. 260^, Krishi Bhawan,

NewDelhi, the18^thMay^,2017 OFFICEMEMORANDUM

Subject::Minutes of SubCommitteemeetingofSDF forconsidering loan applications of sugarfactoriesfor Modernization,Cogenerationand Ethanol/ZLD projectsunder theChairmanship of

Joint

Secretary (Sugar&Admn.)heldon Thursday, the11

"

^>

May,2017at3:00PM -reg.

IncontinuationofthisMinistry^'sOMofevennumberdated 25.04^.2017 onthe subject^,a copy ofthe minutes of the meeting ofSub Committeeheld onll

,

h May^, 2017 at 3:00PMunder the Chairmanship ofJointSecretary (Sugar & Admn.)is enclosed for yourkind information and necessary action.

(N.

lx

K.Kashmira) Director(SDF) Member Secretary Tel.No^.23382338 DISTRIBUTION:

1. Chief Director (Sugar),[ represented byDirector (SugarPolicy)],DirectorateofSugar 2. Director(Finance),D/^oFood&P.D.

3. Director,NationalSugarInstitute,Kanpur,Kalyanpur^,UttarPradesh

SpecialInvitees 4.

5. 6. 7. 8.

The President

/

^{VicePresident}

/

Director General^,ISMA^,NewDelhi Representative from sugarindustry

The President

/

^{Vice President}

/

^{Managing Director, NFCSF Ltd., New Delhi}

Representative from sugarindustry

RepresentativeofSugarTechnologist^’sAssociationofIndia: TechnicalExpert

Representative from NCDC:Banking Expert Representative from IFCI Ranking Expert

KV _ _

(N.K.Kashmira) Director (SDF) Member Secretary Copy forinformationto: PSto|S (Sugar &Admn.)

/

^{PStoDirector(SDF)}

Minutesofthemeeting of the Sub

-

^Committeeunder Sugar DevelopmentfSDFl heldon 11.05

.

2017

.

A meeting ofthe Sub

-

^Committeefor consideration of the loan applications forsetting up of projects for modernization

/

^{expansion, production of ethanol from molasses, Zero}

Liquid Discharge (ZLD) and Bagasse based cogeneration of power project under Sugar Development Fund (SDF) was held under the chairmanship of

Joint

^Secretary (S & A) on 11.05

.

^{2017 at 3.00 PM in} room no, 167^, 1^st Floor, Krishi Bhawan^, New Delhi

.

List of participants isat Annex

-

^1.

2

.

At the outset, the Chairman welcomed all the Members of the Sub

-

^Committee

^.

Thereafter^,agenda itemsweretaken upfor discussion. Casewiseobservations

/

^decisionsare

as follows:

BagasseBased Cogeneration ofPowerproject AgendaItem No

.

^l

M

/

^{s Ponni} Sugars (Erode) Limited, Odapalli, Cauvery RS Post, Erode 638 007, Tiruchengode Taluk, Namakkal Dist, Tamil Nadu (19 MW bagassebasedco

-

^generation

powerproject)

.

1

.

The Sub

-

^committee considered the loan application of M

/

^s Ponni Sugars (Erode) Limited^,Odapalli^,Cauvery RSPost,erode 638 007^,TiruchengodeTaluk^,Namakkal Dist^,Tamil Nadu, for Setting up of 19 MW bagasse based co

-

^{generation power project at a cost of Rs}

^.

9487.00lakh.

2

.

TheCommitteeobserved that the project has been completed

on

17.08

.

2012and all finances have been met by the sugar factory to commission the project long time back

.

Committee observed that in the present circumstances,it is difficult toensurethat theSDF loan to begiven tothesugar factorywoulddefinitelybeusedfor the project and notdiverted to other project

/

^investment by the sugar factory

.

Besides, the sugar factory must have generated substantial

revenue

by sale of power for the past 4

-

^{5 years since its}

commissioning. The funds under the SDF, being limited, needs to be rationally utilized

.

It would be unfair on part of the Government ifthefundsare not availablefor fresh proposals

as a

resultof exhausting funds on projectssuchas thiswhichiscommissioned longtimeback and runningalmost for 5years with all its finances met.The Sub

-

Committeeaccordingly rejectedthe proposal

.

1

MINUTESOF THE SUB

-

COMMITTEE HELDON 11.05

.

2017 Agenda Item No

.

2

M

/

^{s Kukadi SSK Ltd}

.

at Pimpalgaon Pisa, Tal

-

^{Shrigonda, Dist}

^.

Ahmednagar, Maharashtra

-

^{413703,(expansion} of bagasse based co

-

^{generation power project from}

12MWto27 MW)

.

The Sub

-

^Committee considered the loan application of M

/ ^s

^{Kukadi SSK Ltd}

^.

^at

Pimpalgaon Pisa, Tal

-

^{Shrigonda, Dist}. Ahmednagar, Maharashtra

-

⁴¹³⁷⁰³

^.

^{, for sanction of}

financial assistance from SDF for expansion of bagasse based co

-

^{generation power project}

from 12 MW to 27 MWata costof Rs.7176.00lakh. SDFassistanceof Rs

.

2178.00lakh has been requested

.

The project has been appraised by Union Bank of India and technically evaluated by VSI,Pune

.

2. Ason 31.03

.

2016^,theaverage DSCRof the factory andcompany

as a

wholeis1.98 and the FACR of the sugar factory and thecompany asa whole is1.76

.

The IRR ofthe project is 17.62%

.

3

.

Duesposition:

(i) SDFdues: AsperCCA,as

on

31.03

.

2017 isNil

.

(ii) LSPEF dues: No LSPEF duesagainstthesugarfactory

.

(iii) Levy sugar dues: Nil

4. No refinancing of project is involved

.

No old plant and machinery has been considered in the project.NOC(Consent to Establish)from PollutionControl Board has been received

.

SugarFactory has applied for EIA clearance^. PPAisunderprocess

.

5

.

Director^, NS1^,Kanpur^, mentioned that though the bagasse availabilitywas adequate

,

the availability ofsugarcanewasindoubt

.

Asperthe informationfurnished by the sugar factory,the projected

cane

crushing of8.25 LMTis quite highcompared to 4

-

^{6 LMT forthe}

last 4

-

^{5 years. The} sugar factory needed to clarify how they would be increasingthe

cane

availability

.

Thesecond issue was that the steamconsumptionwas 44% which is

very

high and unacceptable

.

NFCSFand STAI representativealso endorsed theviewand expressed that it was necessaryto reduce the steam consumption toacceptablelevels ^toensureefficiency

.

The sugar factory representative mentioned that they would beachieving 39% steam consumption in future

.

As regards, the cane availability, drip irrigation was being encouragedby the mill and that they were having sufficientcane

area

.

6. The Committee directed the sugar factory to furnish the details of

cane

areaavailable alongwith the survey report authenticated by the Distt

./

^{State CaneAuthority}

^as

^{wellas the}

ways

and

means

to achievethereduction insteam consumptionto acceptable levels, within 30 days of issue of the minutes

.

The sugar factory will also furnish the expected date of commissioningof theproject.

7

.

Subject toabove observations the Sub

-

^committee,

^on

^{thebasisofeligible projectcost}

and the loan applied for, recommended a loanof Rs

.

1991.41lakh for consideration of the Standing Committee

.

The sugar factory willgivemeansof financing theshortfall.

K

/

2

8

.

The sugar factory is required to offer Bank Guarantee or first pari passu charge as securityfor SDF loan. However,security requirement will be decided at the ^{time of charge} creationasper extant rules

/

guidelines.

Agenda Item No

.

3

M

/

^s Shri Bhimashankar Sahakari Sakkare Karkhane, Niyamit, Marguar

-

^589204, TQ Indi, Distt

-

^{Vijaypur,Karnataka (14 MW}Greenfield bagasse based

co -

generation power project)

.

The Sub

-

Committee considered the loan application of M

/

^{s Shri} Bhimashankar Sahakari Sakkare Karkhane,Niyamit,Marguar

-

^589204,TQ

^-

^Indi,Distt

^-

^{Vijaypur,Karnataka,forsanction}

offinancialassistancefromSDF for Settingup14 MWGreenfieldbagasse based co

-

^generation

power project at a cost of Rs.8240.00 lakh. SDF assistance of Rs

.

1648.00 lakh has been requested. The project has been appraised by The Karnataka State Co

-

^{operativeApex Bank}

Ltd ., Bengaluru

.

Technical evaluation has been done by TESCOL Engineering Pvt

.

Ltd

.

^,

Bangalore.

2

.

Ason 31.03.2016,the DSCR of thesugarfactory and thecompany asa whole is2.59^, FACRis2.66and IRR for theprojectis24.72%

.

3

.

Duesposition:

(i) SDF dues:NoDuesbeing Greenfieldproject. (ii) LSPEF dues: NoDues beingGreenfieldproject

. (

iii) Levysugardues: NoDuesbeing GreenfieldProject.

4

.

No refinancing of project is involved

.

^No old plant and machinery has been consideredin the project

.

NOC (Consent to Establish) from PollutionControl Board has been received

.

EIAclearanceis not required

.

PPA has been executed with HESCOM

.

5

.

Director (S&VO) pointed out that thesugar factory has not been allotted plant code andshort name

.

Sugar factory

was

directed to submit progress report tothe Directorateof Sugaron regularbasis,andobtainplant codeand short

name

expeditiously

.

6

.

Onthe basisof technical^,financial and otherdata placed beforeit,theSub

-

^committee

concluded that the project istechnically & financially viable

.

Subject toabove observations^, the Sub

-

^{committee, on the basis} of eligible project cost and the loan applied for, recommended a loan of Rs

.

893.51lakh for consideration of the Standing Committee

.

The sugar factory willgive

means

of financing the shortfall

.

7

.

The sugar factory is required to offer Bank Guarantee

or

first pari passu charge as security for SDF loan

.

However,security requirement will be decided at the time of charge creation

as

perextantrules

/

^guidelines

.

0

/

3

MINUTESOFTHESUB-COMMITTEEHELDON 11.05

.

2017 AgendaItem No.4

M/^s The Seksaria Biswan Sugar Factory Ltd., P.O. Biswan Distt.^-Sitapur^,U.P.^-261201 (32 MWbagassebased co^-generation power project).

The Sub

-

^Committee considered the loan application of M

/

^s The Seksaria Biswan Sugar Factory Ltd

.

,P

.

O

.

Biswan Distt

. -

^Sitapur,U

^.

^P

. -

^{261201,forsanctionof}financial assistance from SDF for setting up 32 MW bagasse based co

-

generation power project at a cost of Rs

.

18800.00lakh

.

^SDFassistance of Rs

.

5800.00lakh has been requested

.

The project has been appraised by State Bank ofIndia and technically evaluated by Avant GradeEngineers and Consultants(P)Ltd

.

2. As per the audited balance sheet for 31.03

.

2016, FACR of the sugar factory and company as a wholeis1.03

.

Whereasthesugarfactoryhas calculated theFACR as1.51as on 31.03

.

2016withrevaluationofland 30.03

.

2017

.

DSCR ofthesugarfactory and companyas a wholeis1.76

.

The1RR oftheprojectis17.5%

.

3

.

Dues position:

(i) SDFdues^:As per CCA, ason 28.04

.

2017isNil

.

(ii) LSPEFdues: US(SPF)informedthat no LSPEF dues againstthesugar factory

.

(iii) Levy sugardues^: Aquantityof0.04MTispending

.

4

.

No refinancing of project is involved

.

No old plant and machinery has been considered in the project

.

Sugar Factory has applied for NOC from PCB and EIA clearance

.

PPA hasbeenexecuted with UPPCL

.

5

.

Director,NSI,Kanpurobserved that thebagasse availability wassufficient and the125 ata boiler being used by thesugar factory wasmost efficient andamodelplant

.

President (STA1) also supported the views expressed by Director, NSI, Kanpur

.

Director (S&VO) pointed out that the levy sugar dues were minimal ^at 40 kg and a no levy sugar dues

'

certificate could be issuedto the sugar factory

.

Accordingly,DirectorateofSugar will issue the Noduescertificateindue course

.

Thesugar factory had also signedapower purchase agreement withUPPCL for aperiodof20 years

.

The Committeenoted that theproject was financially viable and technically feasible

.

6

.

Onthe basis of technical,financialand other data placed beforeit, the Sub

-

^committee

concluded that theproject is technically& financially viable

.

Subject toabove observations the Sub

-

^{Committee, on} the basis of eligible project cost and the loan applied for, recommendedaloan ofRs.5422.24lakh for consideration of the Standing Committee

.

The sugarfactorywillgive meansoffinancingthe shortfall

.

7

.

The sugar factory is requiredto offer Bank Guarantee or first pari passu charge as security for SDFloan

.

However,security requirement will be decidedat the timeofcharge creation as perextantrules

/

^guidelines

.

>. ⁴

M

/

^s Harsha Sugars Ltd

.

at Village

-

^{Savadatti, Savadatti Taluk,} Belgaum District,

Karnataka (30MWGreenfield bagasse based cogeneration powerproject)

.

The Sub

-

Committee considered the loan application of M

/

^{s Harsha Sugars Ltd. at}

Village

-

^Savadatti, Savadatti Taluk, Belgaum District, Karnataka, for sanction of financial assistance from SDF for setting up 30 MW Greenfield bagasse based cogeneration power projectatacost of Rs.14975.00lakh. SDFassistanceof Rs. 1500.00lakh hasbeenrequested

.

The project has been appraised by the Karnataka State Cooperative Apex Bank Ltd

.

^,

Bengaluru and technicallyevaluated by Manalee Engineering Pune

.

2

.

FACR of the sugar factory and thecompany asa wholeis1.33

.

The FACR calculated by thesugar factory

as

1.40 includes additional land cost after valuation

-

^Rs

^.

^{1600.00lakh which}

isnot supported by thevaluationcertificatefrom certified (Govt

.

)valuer. DSCRof the sugar factory and thecompany as awholeis1.82andthe1RR of theproject is27.90%.

3

.

Duesposition:

(i) SDFdues:NoDuesbeingGreenfield project

.

(ii) LSPEF dues: No

Dues

beingGreenfield project

.

(iii) Levy sugardues: NoDues beingGreenfield Project

.

4. No refinancing of project is involved

.

No old plant and machinery has been considered in the project

.

NOC(Consent toEstablish) from PollutionControl Board has been received. Sugar Factoryhasapplied forEIAclearance. PPA has beenexecuted with HESCOM.

5. Sugar Factory representative mentioned that plant code wastobeobtained from the DirectorateofSugar. Director(S&VO) pointed outthat the sugarfactory istaken on recordas

"New SugarFactory^’

.

However,

no

progress report had been submitted by the sugar factory

which

were

required

as per

the SugarcaneControl Order

.

The Committee asked thesugar factory to submit

cane

availability certificate from the State Government of Karnataka for year2017

-

^{18 for which the}representativesofthesugar factoryassured toprovide within 7 daysofissueof these minutes

.

6. Onthe basisoftechnical,financialandother data placed beforeit^,the Sub

-

^Committee

concluded that the project istechnically & financially viable

.

Subject toabove observations, the Sub

-

^committee, on the basis of eligible project cost and the loan applied for, recommended a loan of Rs

.

l383.77 lakh forconsiderationof the StandingCommittee

.

The sugar factory willgive

means

of financingthe shortfall

.

7

.

The sugar factory is required to offer Bank Guarantee or first pari passu charge

as

security for SDF loan. The sugar factory representative mentioned that they

were

willingto givebankguaranteeif it isrequired at thetimeof chargecreationon accountof FACR below the benchmark. However,securityrequirement willbe decided atthetimeofchargecreation asperextant rules

/

^guidelines

^.

t

⁵

MINUTESOFTUB SUBCOMMITTEEHELD ON 11.05^.2017 AgendaItem No.6

M/^{s MRN CanePower (India)Ltd}.atKallapur (SK)Khanpur^-587155 Tq- Badami, Dis- Bagalkot,Karnataka(30 MWGreenfield bagassebasedcogeneration powerproject).

The Sub^-Committeeconsideredthe loan applicationof M/^sMRN Cane Power (India) Ltd.at Kallapur (SK) Khanpur^-587155 Tq^- Badami,Dis-Bagalkot^,Karnataka^,for sanctionof financial assistance from SDFforSetting up 30MWGreenfield bagasse basedcogeneration power project at a cost of Rs.16722.00 lakh. SDF assistance of 2357.00 lakh has been requested. The project has been appraised by 1FCI Ltd. and technically evaluated by KSM Engineering Ltd.Bangalore.

2. As regards, the FACR, information is awaited from IFCI and the sugar factory alongwith ABS for last 3 financial years. DSCR of the sugar factory and the company as a wholeis1.58 and the IRRoftheproject is30.90%.

3. Dues position:

(i) SDFdues:NoDues being Greenfieldproject.

(ii) LSPEFdues: No DuesbeingGreenfieldproject.

(iii) Levy^sugardues: No DuesbeingGreenfieldProject.

IFCIinformed that thesugarfactoryhascleared theSDFduesin respect of M

/

s Nirani Sugars Ltd.agroup company.O

/

^{o CCA,DFPD}has been askedtoconfirmthesame^.

4. No refinancing of project is involved. No old plant and machinery has been considered in the project. The sugar factory applied for NOC from PCB. EIA clearance received. PPAwillbe signedwith HESCOM.

5. Director (S&VO) pointed out that the validityof the IEMissuedin 2011,haslapsed and isyet tobeextendedby thesugarfactory. TheCommitteedirectedthat thesugarfactory shall furnish therequisiteinformationaswellasobtain extensionof IEM within30days of issueoftheseminutes.

6. Onthebasis of technical^,financial and other dataplacedbeforeit,the Sub^-committee concluded that the project istechnically & financially viable.Subject toabove observations,

the Sub-Committee^, on the basis of eligible project cost and the loan applied for,

recommendedaloan of Rs.2149.08lakh for consideration of the StandingCommittee.

7. The sugar factory isrequired to offer Bank Guarantee or first pari passu charge as security for SDFloan. However,security requirement willbe decidedat thetime of charge creation as perextantrules

/

^guidelines.

6

AgendaItem No

.

⁷

M

/

^s Mylar Sugars Ltd

.

, Beerabbi Village, Hoovina Hadagali Taluka, Distt.

-

^Bellary,

Karnataka (18 MWGreenfield bagassebasedco

-

^{generation powerproject)}

^.

The Sub

-

^Committee considered the loan application of M

/

^{s Mylar Sugars Ltd}

.

, Beerabbi Village^, Hoovina HadagaliTaluka^,Distt.

-

^{Bellary,Karnataka,forsanction}of financial assistance from SDF for setting up 18 MW Greenfield bagasse based co

-

^{generation power}

projectat a cost of Rs.9237.00 lakh

.

SDFassistance of Rs.1090.00 lakh has been requested

.

The project has been appraised by The Karnataka State Co

-

operative Apex Bank Ltd

.

, Bengaluru and technically evaluated by ECHO

-

^{Biotech Financial}consultants Pvt

.

Ltd

.

2

.

The FACRof thesugar factory and thecompanyasawholeis0.98. Whereas the FACR asper ABSsubmitted by SFas on 31.03

.

2016is1.31

.

However^,a calculation sheet certified by CA has been soughtfromSF. DSCRof the sugarfactoryand thecompany asawholeis1.95 and the IRRof the project is22.3%

.

3. No refinancing ofprojectisinvolved. No old plant and machinery has been considered in the project. Consent to Establish for 18MW and Consent to Operate for 14 MW from Pollution Control Board has beenreceived

.

SugarFactoryhas applied forEIA clearance. PPA has been executed with GESCOM.

4. Duesposition:

(i) SDFdues:No Dues being Greenfield project. (ii) LSPEFdues^: No DuesbeingGreenfieldproject. (iii) Levysugardues: NoDues beingGreenfieldProject

.

5

.

Director^, NSI^, Kanpur^, mentioned that several technical details including the Heat Mass Balance Diagram (HMBD)and data relating to steamconsumption requireclarification from Sugar Factory. The Sugar Factory representativeswere also asked to clarify theissues

.

The Committee directed the Sugar Factory to provide all information

/

^{documents to NSI,}

Kanpur toexaminethe technical proposal and Director,NSI,Kanpurafter examination of the samewill submita report tothis Department

.

Accordingly^,Director,NSI^,Kanpurvidee

-

^mail

dated 13.05.2017has informedthat theavailabilityofsugarcane shall beadequate tocope

-

^up

with 3500 TCD for envisaged days ofoperationand^capacityutilization. Director,NSI^,Kanpur has alsoinformed that adequate bagasse shall be availableforcarrying outenvisaged power generation for160 days on its

own

bagasseand the sugar factory shall beable to generate 18.00 MW power having net exportable power of 12.30 MW during

season .

Director, NSI,

Kanpurhas confirmed that theproject istechnically viable.

6. Onthe basis of technical,financialand other data placed before^{it,the Sub}

-

Committee concluded that the project istechnically & financially viable

.

Subject toabove observations, the Sub

-

^{Committee, on the basis} of eligible project cost and the loan applied for, recommendedaloan of Rs

.

711.17lakh for consideration of the Standing Committee

.

v ⁷

MINUTESOFTHESUB-COMMITTEH HELD ON 11.05

.

2017 7

.

The sugar factoryis required to offer Bank Guarantee or first pari passucharge as securityforSDFloan

.

The Sugar factory shall also giveanundertaking on furnishing of bank guarantee as and when required considering the FACR before the creation of charge

.

However,security requirement willbe decided atthe timeof charge creation as per extant rules

/

^guidelines

^.

MODERNISATION

/

^EXPANSIONPROJECTS

AgendaItem No.8

M

/

^s.DCMShriram Industries Ltd.^, Unit:Daurala SugarWorks,Daurala,District Meerut,UttarPradesh.(Modernisation).

TheSub-Committeeconsidered the loan application ofM

/

^s

.

DCM ShriramIndustries Ltd

.

^, Unit:Daurala Sugar Works,Daurala,District Meerut,Uttar Pradesh

,

for sanction of financialassistancefrom SDF for Modernisation ofsugarplantatacostof1176.00 lakh

.

2

.

Since, in this case also, the project has beencommissionedlongback in November, 2012,the Committeedecidednot torecommendany SDF loan onthe grounds similarto

those considered in the case of M

/

^sPonniSugars (Erode) Ltd

.

in Agenda No

.

1 during this meeting

.

Agenda Item No.9

M

/

s. DSM Sugar Rajpura (a unit ofDhampurSugarMills Ltd

.

)Distt.Bheem Nagar, Uttar Pradesh.(Modernisationcumexpansionof sugarplant from 7500TCDto10000 TCD).

The Sub

-

^Committee considered the loan application of M

/

^s

.

DSM Sugar Rajpura (a unitofDhampurSugarMills Ltd

.

)Distt

.

BheemNagar,UttarPradesh forsanctionof financial assistance from SDF for Modernisation cum expansion of sugar plant from 7500 ^{TCD to} 10000TCDatacostofRs

.

9312.00lakh

.

SDFassistanceof3725.00 lakh hasbeenrequested

.

Theprojecthasbeen appraised byIFCILtd

.

andDPRprepared by DhampurSugarMillLtd

.

in house and verified&certifiedbyA

.

Parida&Associates

.

2

.

^No refinancing of project is involved

.

No old plant and machinery has been consideredintheproject

.

^NOCfromPollution Control Board for^{9000 TCD}hasbeen received

.

Sugar Factory has furnished EIA clearance for expansion from 7000TCD to 9000 TCD

.

However,the sugar factory isrequired to furnish the ^NOC from PCB andEIA Clearance or acknowledgement for application thereoffor 10,000 TCD

.

Onthe basis of technical,financial and otherdataplacedbeforeit,the Sub

-

^Committeeconcluded that theproject istechnically&

financially viable

3

.

^Ason31.03

.

2016,FACRofthesugarfactoryand the companyas awholeis2.51

/

^3.48

.

DSCR ofthe sugarfactoryand the company as awholeis2.42

/

^3.39

.

IRR of theprojectis19%

.

8

4. Duesposition:

(i) SDFdues:Asper CCA^,as on28.04.2016isNil.

(ii) LSPEFdues: NoLSPEFduesagainstthesugarfactory.

(iii) Levysugardues: Nil

5. Theissue oftheprojectbeingintegrated withcogenerationprojectapproved earlier was discussed during the meeting. It was informed by the Director^, NSI, Kanpur that the expansion ofcrushingcapacity from 7500 TCD^to 8500TCDand further to 10,000TCDhas been aimedby thesugarfactory keeping inviewthe availabilityof sugarcaneⁱⁿthe areaand for which they have submitted a certificate from ^cane authorities also. In the process the factory has also increased the co^-generation potential from 12 MW ^to 35.5 MW. The expansion of thecrushingcapacity shallensure availability of the adequatebagasse for the desired numberof daysduringseasonandoffseason and hence theco-generation project may be consideredintegrated with theexpansionproposal^. The factory has^not optedto

highercapacity co^-generationto saveoncapital^costandto spread theco^-generationduring off-season also.President (STAI) also supported the ^viewand informed that by doingso the grosspowergenerationshallnotbeaffected^,onthe other hand thecapital^costshallremain lower. Director, NSI, Kanpur^, President (STAI) and representative of NFCSF were of the opinionthat thetwoprojects wereintegrated.

6. On thebasisoftechnical^,financialandotherdata placed beforeit,the Sub-committee concluded that theprojectistechnically& financially viable. Subjectto aboveobservations^, the Sub-committee, on the basis of eligible project cost and the ^loan applied for,

recommendedaloan ofRs.1842.235lakhforconsideration oftheStandingCommittee.

7. The sugar factoryisrequired to offer Bank Guarantee or first pari passu charge ^as security for SDFloan.However^,security requirement will bedecided ^{at thetime of charge} creation asper^extantrules

/

^guidelines.

AnhydrousAlcoholorEthanolplantfrommolasses Projects AgendaItemNo.10

M

/

^{s ShriSaiPriyaLimited, Hippargi-Mygur,VishalNagar,Hipparagi-AlabalRoad,Tq-} Jamkhandi^{, Dist - Bagalkot-587311, Karnataka (120 KLPD} anhydrous alcohol or ethanol plant frommolasses).

The Sub^-Committee considered the loanapplication of M

/

s Shri Sai Priya Limited^, Hippargi ^- Mygur, Vishal Nagar^, Hipparagi^-Alabal Road, Tq^-

Jamkhandi

^{, Dist - Bagalkot-}

587311,Karnataka,for sanctionoffinancial assistance from SDF for ^Settingup of 120 KLPD anhydrous alcohol or ethanol plant from molasses at a cost of Rs. 16180.00 lakh. SDF assistanceofRs.6471.00lakh has beenrequested. The projecthas been appraised by^IFCI Ltd.and technicallyevaluated byMITCONConsultancy&Engineering ServicesLtd.

0^/ 9

MINUTES OF THE SIJB

-

^COMMITTEE

^HEED

^{ON 11.05}

^{. 2017}

2

.

No refinancing of project is involved

.

No old plant and machinery has been considered in the project

.

NOC (Consentto Establish) from PollutionControl Boardhas been

received. EIAclearancehas beenreceived. 3

.

Dues position:

(i) SDFdues:As

per

CCA^,as on 28.04.2017isNil against thesugarfactory.

(ii) LSPEFdues: No LSPEF duesagainstthe sugar factory.

(iii) Levy sugardues: Nil

IFCI informed thatthe sugarfactoryhas cleared the SDF duesin respectofM

/

^{sNiraniSugars}

Ltd.

a

^groupcompany

.

O

/

^oCCA,DFPD has been asked to confirm the

same .

4. Ason 31.03

.

2016^,the FACR of the factory and company asa wholeis 1.52, DSCR is 1.51 and the IRRoftheproject is28.55

%

^.

5. Director, NSI, Kanpur pointed out that there

was a shortfall

in molasses

.

The representatives of the sugar factory informed that the company haveanother sugar factory 1

.

e

.

M

/

^{s MRN Cane PowerLtd. anditdoes}nothave any distillery

.

The Committeedecided that sugar factory willfurnishanagreementfor supplyof molassesfornext10years

.

6. Onthe basisof technical,financialand otherdata placedbefore it^,theSub

-

^committee

concluded that the project is technically & financially viable. Subject to aboveobservations the Sub

-

^committee,

^on

^{the basis of} eligible project cost and the loan applied for,

recommended aloan of Rs

.

5358.91 lakh for consideration of theStandingCommittee

. The

sugar factory willgivemeansof financing the shortfall

.

7

.

The sugar factory is required to offer Bank Guarantee or first pari passu charge as security for SDF loan

.

However^,security requirement will bedecided at the timeof charge creationasper extant rules

/

^guidelines

.

Agenda Item No

.

ll

M

/ ^s

Bhairavnath Sugar Works Ltd

.

, Sonari^, Tal

.

Paranda, Dist

.

Osmanabad^, Maharashtra (30KLPDanhydrousalcoholor Ethanol Project)

.

The Sub

-

^{Committeeconsidered}the loan application of M

/

^sBhairavnathSugar Works Ltd

.

^,Sonari,Tal

.

Paranda^, Dist.Osmanabad^,Maharashtra^,forsanctionof financialassistance fromSDFfor Setting

up

30KLPD anhydrousalcoholorEthanolProjectat

a

costofRs.

5427.00

lakh. SDFassistanceof Rs

.

2211.60lakh hasbeen requested

.

The project hasbeen appraised byIDBIandtechnically evaluated by Conducted by P

.

H

.

Baldota& Co

.

2

.

No refinancing of project is involved. No old plant and machinery has been considered inthe project

.

NOC (Consent to operate)from Pollution Control Board hasbeen received

.

EIA

clearance

received

.

3

.

Dues position:

(i) SDFdues:As

per

CCA,

as on

28.04

.

2017is Nil

.

10

(ii) LSPEFdues: No LSPEF duesagainstthe sugarfactory. (iii) Levysugar dues: Nil

4. As on 31.03.2016^, the average DSCR of the sugar factory

/

^company

^as

^{a whole is}

1.74

/

^2.49and the FACR of the sugarfactory

/

^{companyasa wholeis 2.07}

/

3.07 respectively

.

TheIRR is17.01%

.

5. Director, NSI^, Kanpur,pointed out that the ethanol sellingpriceof Rs

.

45

/ ^-

^{per literin}

theassumptionswas not correctasthe current price washovering around Rs.39

/ -

^{per liter}

^.

It therefore^,needed to beascertained whether theprojectwould beviableifthe sellingprice of Rs

.

39

/ -

^{per liter is} taken. Further,the pol %is4.25 and not 4.5

as

quoted in the details furnished bythe sugar factory. Further, there were no details regarding implementation of ZLD. Though the sugar factoryrepresentative mentioned thatthe totalcapacityof thegroup was9000TCDto

ensure

availabilityof molasses

.

^{Director, NSI,}Kanpur pointed out that the transportation cost had not been mentioned not taken into account to

assess

the viability

.

Besides, many figures

/

^{details like capacity} utilization furnished by the sugar factory were vague and needed to be revisited. TheCommitteealso noted that theadditionalinformation was furnished by the sugar factory but the same has not been received through the appraisingbank,which isrequiredforexaminationand calculationof SDF loan

.

6

.

In ^view of the above, the Committee decided to defer the proposal and directed NSI, Kanpur to

re -

^{examine the}technical detailsfor which thesugarfactoryshall provideall the

necessary

information

/

^{documentsto NSI,Kanpur.The sugarfactorywasalsodirectedto}

expedite the additional information through theirappraisingbank

.

*x

11

Annexure- Listof Participants of Sub CommitteeMeetingheldon11.05^.2017

S.No. NameofMembers Department

1 Shri Subhashish Panda

Joint

Secretary (

S

&

A

)

Chairman

2 Shri Narendra Mohan

Director,NSI Kanpur Member

3

Shri G

.

S

. Sahu

Director (S & VO) DirectorateofSugar

Member

4

Shri R .

K

. Pandey

Director (Finance)

Member

5

^{Shri N.K}

.

Kashmira

Director(SDF)

Member

^Secretary

Special Invitees

6 Shri G

.

K

.

Thakur

Director (Policy) Indian Sugar

Mills

Association

7 ShriPrakash P

Naiknavare

Managing Director

National

Federationof

Co -

operative Sugar Factories

Ltd .

8 Dr

.

Sanjay Awasthi

President

^SugarTechnologist^’

s

Associationof India

9 Shri K.V.NSetty,Chief Director

Shri R

.

K

.

Mangla^,

Deputy

Director NCDC

10 Shri S

. Chandrasekaran

,Asst

.

GM

Shri Manoranjan

Sharma

,

Asst .

GM IFCI

Others

11 Shri Sudesh Kumar

Under

Secretary (

SPF

)

12 Shri Sunil Chauhan Under

Secretary (

SDF

)

13 Shri Kanav

Dua

Asst

.

Director(

Cost

)

14

Shri

Manmohan

Kumar Section Officer (

SDF

)