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CHHATTISGARH STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED (A GOVERNMENT OF CHHATTISGARH UNDERTAKING) DEPARTMENT OF COMMERCE & INDUSTRIES Expression of Interest for Setting up of Bio Refinery (Ethanol/Bio fuel) Units in Chhattisgarh

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Page 1: Expression of Interest for Setting up of Bio Refinery ... · respective Markfed storage centres of Chhattisgarh State production of ethanol. The current price of thick paddy @ INR

CHHATTISGARH STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED(A GOVERNMENT OF CHHATTISGARH UNDERTAKING)

DEPARTMENT OF COMMERCE & INDUSTRIES

Expression of Interest for Settingup of Bio Refinery (Ethanol/Bio

fuel) Units in Chhattisgarh

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Table of Contents1. INTRODUCTION........................................................................................................................................ 32. OBJECTIVE ............................................................................................................................................... 53. Benefits from Bio Ethanol Project ............................................................................................................. 54. Benefits under Industrial Policy 2014-19 .................................................................................................. 75. LAND ....................................................................................................................................................... 86. ELIGIBILITY ............................................................................................................................................... 97. EXPRESSION OF INTEREST ...................................................................................................................... 108. SANCTIONING OF PROJECT..................................................................................................................... 109. JURISDICTION ........................................................................................................................................ 1010. CHECKLIST of DOCUMENT SUBMISSION ............................................................................................. 10ANNEXURE - I ................................................................................................................................................. 12ANNEXURE - II ................................................................................................................................................ 21

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PROPOSAL SUBMISSION INFORMATION

Parameter DetailsDepartment Name/Authority Name Department of Commerce & Industries, Government

of ChhattisgarhAddress 1st Floor, Udyog Bhavan, Ring Road 1, Telibandha,

Raipur – 492 006 (INDIA)Name of Project Inviting Proposals for setting up of Bio Refinery

(Ethanol/Bio fuel) units in ChhattisgarhGuideline & format Downloading Start Date 5th October 2019Guideline & format Downloading End Date 30th October 2019Last Date & Time for Submission of Proposal 30th October 2019 up to 1500 hoursSubmission of the Proposal Proposals along with other documents in one

envelope up to 1500 hours on 30/10/2019 byRPAD/In Person in the office of CHHATTISGARH STATEINDUSTRIAL DEVELOPMENT CORPORATION LTD., 1st

Floor, Udyog Bhawan, Ring Road No. 1, Telibandha,Raipur – 492 006 (INDIA)

Phone 0771-6002071-73Email Id [email protected], [email protected] Inviting Proposals CHHATTISGARH STATE INDUSTRIAL DEVELOPMENT

CORPORATION LTD., 1ST. Floor, Udyog Bhavan, Ring Road1, Telibandha, Raipur – 492 006 (INDIA)

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1. INTRODUCTION

Government of India has set up a target of 20% blending by 2015. Apex financial

institutions like the National Bank for Agriculture and Rural Development (NABARD),

Indian Renewable Energy Development Agency (IREDA) and Small Industries

Development Bank of India (SIDBI) have refinancing provisions to set up biodiesel

plantations, oil expelling/ extraction units, and infrastructure for storage and distribution.

The Bio-Diesel Association of India (BDAI), is a non-profit national association

representing the biofuels sector more specifically biodiesel industry as the coordinating

body for marketing, research and development in India, encourage biofuels specially

biodiesel and assure sustainable agricultural growth, rural development, energy security

and equal opportunity for the masses with overall environmental protection.

India’s biofuel policy exempts the biofuel sector from central taxes and duties. While

biodiesel is exempt from excise duty, bioethanol enjoys a concessional excise duty of 16%.

Customs and excise duty concessions are also provided on plant and machinery to

produce biodiesel and bioethanol. These policies promote the biofuel sector.

Energy consumption is increasing at 6.5% per annum, while reserves of petroleum are

decreasing day by day. India’s share of crude oil production is about 1% of global crude

oil production, whereas consumption amounts to 3.1% of global consumption no. of

private and Government organizations is involved in production and distribution biofuel

in India. It is wise to consider the surplus availability and compatibility of the crop as

suitable source of biodiesel production.

Typical feed stocks for biodiesel production are soybean, canola/rapeseed, sunflower,

cottonseed, palm seed and palm kernel, corn and mustard seed oil. Pork, beef and poultry

fat and grease also can be converted to biodiesel. The detailed agricultural biofuel

potential of India is estimated as below:

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S. No. Crop type Oil yield potential (‘000 Lakh/Hectare)1 Microalgae 47.5-142.52 Oil Palm 6.03 Jatropha 2.04 Canola 1.255 Rapeseed 1.26 Sunflower 1.07 Soybean 0.58 Corn 0.2

Chhattisgarh is popularly known as the rice bowl of the country. Having a total geographical

area of 135 Lakh Ha; around 43 % of the land under agriculture with Rice as the major crop of

the state occupying 66% of the total cropped area. Pulses, oil seeds and horticultural crops

occupy around 17%, 5% and 2% of the cropped area respectively. Almost 80% of the

population in Chhattisgarh is dependent on agriculture and allied activities. Agriculture &

allied sectors constitute more than 20% of the State GSDP.

Chhattisgarh’s Paddy production (Lakh tonne):

S. No. Year Paddy Procurement State’s requirement Surplus Paddy for productionof bio fuel

1. 2015-16 59.30 25.30 34.002. 2016-17 69.30 33.00 36.603. 2017-18 56.90 32.80 24.104. 2018-19 80.40 42.40 38.00

It is estimated that 6 lakh metric tonnes of paddy may be available after meeting requirement

of Public Distribution System (PDS) for production of ethanol in Chhattisgarh State. District

wise processable surplus of paddy is mentioned below:

S. No. District Procured Paddy(Metric tonne)

Surplus Paddy (after meetingrequirement of Nagrik KhadyaAapurti Nigam (NAN) (Metric tonne)

1. Mahasamund 713148 5153302. Balodabazar 636268 4037083 Rajnandgaon 634107 3733704 Janjgir Champa 757353 3666425. Balod 495983 3661606. Bemetara 466416 3189527. Dhamtari 404843 2253748. Gariaband 299818 1870119. Mungeli 306852 17035710. Raigarh 465551 161539

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11. Kawardha 278304 12146912. Raipur 484300 10455113. Bilaspur 441428 8162114. Durg 327022 6545015. Kanker 251455 63435Total 8038031 3536194

Rice is an important crop grown in nearly 44 million ha of land in the country with the

productivity of 2.2 t/ha which is less than the productivity of many countries. Annual

population growth rate of the country is nearly 1.8 % and if per capita consumption of rice is

expected to be 400 gm of rice per day then the demand for rice in 2025 will be 130 m. tonnes.

Rice is one of the most widely grown cereal crops, with enormous levels of production in

Chhattisgarh leading to an abundance of rice husk and rice straw. Rice straw and husk are

globally significant sources of cellulose-rich biomass and there is great interest in converting

them to bioethanol.

Looking at the current level and in times to come it is expected that paddy production will

increase and there will be a requirement of at least 6 bio ethanol production plant in the State

of Chhattisgarh. The Interested promoters shall ensure collection of surplus rice from

respective Markfed storage centres of Chhattisgarh State production of ethanol. The current

price of thick paddy @ INR 1915.50 per quintal and thin paddy @ INR 1936.50 per quintal.

2. OBJECTIVE

Department of Commerce & Industries, Government of Chhattisgarh is committed to

promote Bio Refinery for production of Ethanol and bio fuel in the State and has identified

bio ethanol as the focus sector for investments under Industrial Policy.

3. Benefits from Bio Ethanol Project

Ethanol as fuel provides high quality, high octane for exceptional engine performance.

Ethanol as fuel can be combined with petrol in any concentration up to pure ethanol.

Anhydrous ethanol, i.e., ethanol without water, can be blended with petrol in varying

quantities to reduce the consumption of petroleum fuels, as well as to reduce air pollution.

Ethanol as fuel is increasingly used as an oxygenate additive for standard petrol, as a

replacement for methyl t-butyl ether (MTBE), the later chemical being responsible for

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considerable groundwater and soil contamination. The project will generate following

benefits:

Boost to Indian economy:

· Agriculture sector will get boost because of additional production of grains

· Less dependence on imports and cheaper cost of production of ethanol will bring down

the prices of fuels

· Revenues to the State and Central ex-chequers

Benefit to Farmers:

· Manufacturing of Ethanol as fuel from grains will also help the farmers to get good

support price for their produce in the form of grains

· Spent wash will be treated in decanter followed by Multiple Effect Evaporator & then in

Dryer. The output from Dryer is known as Distillers Dried Grain Soluble (DDGS). It is of

very high in protein content (around 35%). It will be used as Cattle feed by farmers

Environmental Benefits with the project:

· Due to blending of Ethanol, significant reduction in fuel consumption, hence conservation

of fuel

· Due to blending of Ethanol significant reduction in air pollution

· As a renewable fuel, ethanol is doing more for the environment. It reduces greenhouse

gas emissions by up to 59 percent relative to gasoline

· Even adding as little as 10 percent ethanol to gasoline significantly reduces tail pipe

emissions of carbon monoxide and non-combusted hydrocarbons

· Less water consumption per KLD of Ethanol production as compared to Molasses

· Less steam consumption per KLD of Ethanol production as compared to Molasses

· Recycling of significant portion of spent wash

· Zero Liquid discharge system will be adopted and is approved by Central Pollution Control

Board

· Co-generation power within the premises. This eliminates the external power

requirement and the transmission losses

Socio Economic Benefits:

· Employment generation to the local people

· Socio-economic Developmental activities will be carried out in the area with the

implementation of the project. 2% of the project cost will be earmarked for socio-

economic developmental activities in the area

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4. Benefits under Industrial Policy 2014-19

Department of Commerce & Industries, Government of Chhattisgarh has identified Bio

Ethanol sector as priority sectors under Industrial Policy 2014-19. Bio Refinery manufacturing

units will be eligible for benefits under Industrial Policy 2014-19:

Interest Subsidy• Micro & Small Industry: Upto 60% of the total interest paid, maximum limit of INR 30 lakhs

per year• Medium & Large Industry: Upto 60% of the total interest paid, maximum limit of INR 40

lakhs per year• Mega & Ultra mega projects: Upto 70% of the total interest paid, maximum limit of INR

100 lakhs per year• Special Economic Package for SC/ST: Upto 75% of the total interest paid, maximum limit of

INR 120 lakhs per year

Fixed Capital Investment Subsidy• Micro & Small Industry: 35% of the fixed capital investment, maximum limit of INR 80 lakhs• Medium & Large Industry: Upto 45% of the fixed capital investment, maximum limit of INR

120 lakhs• Mega & Ultra mega projects: Upto 50% of the fixed capital investment, maximum limit of

INR 500 lakhs• Special Economic Package for SC/ST: Upto 50% of the fixed capital investment, maximum

limit of INR 500 lakhs

Electricity duty exemption• For all category of Industries: Full exemption upto 10 years from the date of commercial

production• Special Economic package for SC/ST: Full exemption upto 12 years from the date of

commercial production

Exemption in land premium on allotment of land in Industrial areas/Industrial Parks• Small, Micro, Medium Industry: Upto 60% exemption in land premium• Large, mega projects/ultra projects: Upto 25% exemption in land premium• Special Economic package for SC/ST: 100% exemption of land premium shall be given on

land allotment for establishing industries. Rate of lease rent will be INR 1 per acre per year

Project Report Subsidy• Small, Micro, Medium Industry: 1% of the fixed capital investment, maximum INR 2 Lakh

Quality Certification Subsidy• Small, Micro, Medium Industry: 50% of expenditure for certification, maximum limit INR 1

Lakh• Special Economic package for SC/ST: New and existing Micro, Small and Medium Industry

– 60% of the amount spent, maximum limit INR 1.25 Lakh for obtaining certification

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Technology Purchase Subsidy• For all categories of Industry: 50% of expenditure for patent, maximum of INR 5 Lakh• Special Economic package for SC/ST: For all categories of Industry – 60% of the amount

spent on purchase of technology, maximum limit of INR 6 Lakh

Technical Patent Subsidy• Small, Micro & Medium Enterprises: 50% of expenditure for certification, maximum limit

of INR 1 Lakh• Special Economic package for SC/ST: New & existing Micro, Small and Medium category

industries- 60% of the amount spent, maximum limit of INR 1.25 Lakh for obtainingcertification

Government of Chhattisgarh has also notified the special package to promote the

development of bio-ethanol sector. The Government of Chhattisgarh shall select first 6

projects for setting up of up the bio-refinery plant for production of ethanol/bio fuel and shall

be given the advantage of Early Bird Scheme.

The first 6 units that can sell the ethanol/bio-fuel to public sector enterprises such as

Hindustan Petroleum, Indian Oil, Bharat Petroleum etc. within the 6 months from date of

execution of MoU with Government of Chhattisgarh shall be eligible for special grant of INR

2 Crores (as per notification no. F 20-36/2014/11/6 issued by Government of Chhattisgarh

dated 30-09-2019.

Note: In case of any dispute or any matter arising out of special package, the notification

issued by Department of Commerce & Industries, Government of Chhattisgarh will be

considered and decision of Department of Commerce & Industries, Government of

Chhattisgarh will be final and binding to all the eligible promoters/companies/agencies.

5. LAND

Applicant if required can apply to Department of Commerce & Industries, Government of

Chhattisgarh for allotment of land from Land Bank. The Department of Commerce &

Industries, Government of Chhattisgarh can allocate the required land from land bank as per

Land Allotment Rules 2015 of Department of Commerce & Industries, Government of

Chhattisgarh.

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6. ELIGIBILITY

Department of Commerce & Industries, Government of Chhattisgarh invites proposals from

companies/ promoters for setting up of Bio Refinery unit in the State of Chhattisgarh. Eligible

entities for submission of proposal are as under:

i. Private Company: The form of offer should be signed by the Managing Director/the

Secretary/the Director or any other Principal Officer of the Company and should be

accompanied by a certified copy of the Resolution of the Board of Directors of the

Company or by a person holding the power of Attorney from the Company to do so

on behalf of the company and a copy of Memorandum and Articles of Association of

the Company should also be furnished. In case of private company, a certificate from

Chartered Accountant, indicating the names of the shareholders and share of each of

them is to be submitted along with offer.

ii. Promoters: Promoter of the Private Company

iii. Partnership Firm: The form of offer should be signed by all the Partners in the favour

by any of them, holding power of attorney of other partners, accompanied by a

certificate of registration issued by the Registrar of Firms/application made for

registration, showing the names of all partners of the firm and a certified copy of the

partnership deed/application made.

iv. Cooperative Society: The form of offer should be signed by the Chairman or Secretary

of the Managing Committee of the proposed/registered Co-operative Society, duly

authorized by a resolution of the Society in a general or special meeting of the society.

The extract of the resolution so passed must be enclosed with the offer form, without

which the offer shall be held invalid

The applicant competence and capability proposed to be established by the following

parameters:

i. Technical Capacity

ii. Financial Capacity

The applicant to satisfy the above conditions of eligibility. The Technical Capacity and

Financial Capacity will only be considered for project evaluation.

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7. EXPRESSION OF INTEREST

In response to the Notice Inviting Tender Expression of Interest (EoI) from Department of

Commerce & Industries, Government of Chhattisgarh for selection of Projects proposals for

setting up of bio refinery units shall be submitted by the applicant in the prescribed Common

Application Form (Annexure-I) and (Annexure-II) along with following

information/documents:

i. Detailed Project Report (DPR) consisting of technical, commercial, financial and

management aspect of the project. The proposal would have tentatively identified

location of the unit, availability of land, potential investors for bio refinery units,

proposed level of investment including the estimated project cost, the proposed means

of finance and type of bio refinery units along with complete details

ii. Certificate of incorporation/ registration of the applicant firm, Memorandum and

Articles of Association in case of Company/ Bye laws of the Society, Co-operative, /

Registered partnership deed, etc.

iii. Bio-data/background/ experience of the project promoter(s)

iv. Documents in support of net-worth of the promoter(s) / proposed shareholder(s) of

promoters/companies/agencies

v. Annual reports and Audited Financial Statement of Accounts of the applicant

firm/company/cooperative/ Partnership etc. for preceding three financial years.

8. SANCTIONING OF PROJECT

In response to the Notice Inviting Tender Expression of Interest (EoI) from Department of

Commerce & Industries, Government of Chhattisgarh for selection of Projects proposals for

setting up of bio refinery units. The Technical Committee would scrutinize the proposals and

provide its recommendations for Approval of Proposals.

9. JURISDICTION

Any matter arising out of this guideline will be under the Jurisdiction of Raipur Only.

10. CHECKLIST of DOCUMENT SUBMISSION

The applicant shall ensure the submission of following documents with their proposals:

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i. Power of Attorney for signing the agreement, wherever required along with the

extract of the charter documents such as Board resolution/Power of Attorney in favour of

the person executing this Power of attorney for the delegation of power hereunder on

behalf of the Executant

ii. In case of a Partnership Firm, certified copy of the Registered Partnership Deed and

certificate of registration

iii. In case of Sole Proprietorship, a certified copy of PAN card

iv. In case of Limited Company, a copy of the Memorandum of Articles and Articles of

Association

v. In case of private company, a certificate from Chartered Accountant, indicating the

names of the shareholders and share of each of them

vi. Duly Filled Form as given in Appendix I and Appendix II

Note: The above check list is only illustrative and does not control in any manner

whatsoever the aforesaid substantive provision of this offer document and other relevant

provision.

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ANNEXURE - I

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ANNEXURE - IIThe list of the Points / Information to be covered in the EoIs / Proposals

1. Profiles of the applicant firm / company

1.1. Names and brief profiles of the proposed promoters along with their contact details.1.2. Indicate the nature and location of existing operations of the Promoters.1.3. Audited balance sheets for last 3 years or Chartered Accountant (CA) Certificates that

would establish the net worth of each of the promoters. In case of companies, CAcertificates need to be certified by their statutory auditors.

1.4. A brief note as to why the promoters are keen to undertake the Bio Refinery unit inState of Chhattisgarh, their vision etc.

1.5. Any other relevant information that would establish the credentials and suitability ofthe promoters in the context of the Scheme.

2. Profile of the Proposed Project

2.1. Rationale for proposed cluster/location in terms of availability of agriculturalproduces and marketable surplus, with focus on perishable produces.

2.2. Proposed Area and availability of requisite land for establishment of bio refinery unit.

2.3. Selection of site needs to be justified in terms of connectivity and availability of basicinfrastructure including power, water, approach road etc.

2.4. In case of land being available with promoter(s), proof of possession of land in formof sale deed/lease deed (CLU if applicable).

2.5. Details of the proposed core processing facilities and rationale for their selection interms of availability of raw materials/market and type of bio refinery units beingtargeted.

2.6. Details of proposed enabling basic infrastructure including requirements of basicutilities like power, water, effluent treatment along with rationale in terms of overallbusiness plan

2.7. Details of proposed non-core activities and their justification

2.8. Above details for various project components should include area required,estimated capacities and costs for various facilities

2.9. Proposed strategy/methodology for building supply chain to ensure supply of rawmaterials to the bio refinery units, including estimated quantities

2.10. Estimated turnover of the proposed bio refinery industry units covered in theproject, after successful execution of project

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2.11.Estimated direct & Indirect employment generation out of implementation of projectand other impact on industry

2.12.Any other information