DETAILED PROJECT REPORT

ON
ENERGY EFFICIENT BOILER
(SOLAPUR TEXTILE CLUSTER)

Bureau of Energy Efficiency

Reviewed By
Prepared By
ENERGY EFFICIENT BOILER

SOLAPUR TEXTILE CLUSTER

 BEE, 2010

Detailed Project Report on Energy Efficient Boiler (200kg/hr)

Textile SME Cluster, Solapur, Maharashtra (India)
New Delhi: Bureau of Energy Efficiency;
Detail Project Report No.: SLP/TXT/EEB/02

For more information

Bureau of Energy Efficiency (BEE)
(Ministry of Power, Government of India) Fax +91-11-26178352
th
4 Floor, Sewa Bhawan Telephone +91-11-26179699
R. K. Puram, New Delhi – 110066 Websites: www.bee-india.nic.in
Email: [email protected]/ [email protected]
 Acknowledgement

We sincerely appreciate the efforts of industry, energy auditors, equipment manufacturers,

technology providers, consultants and other experts in the area of energy conservation for
joining hands with Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India
for preparing the Detailed Project Report (DPR) under BEE SME Program in SMEs clusters.
We appreciate the support of suppliers/vendors for providing the adoptable energy efficient
equipments/technical details to the SMEs.

We have received very encouraging feedback for the BEE SME Program in various SME
Clusters. Therefore, it was decided to bring out the DPR for the benefits of SMEs. We
sincerely thank the officials of BEE, Executing Agencies and ISTSL for all the support and
cooperation extended for preparation of the DPR. We gracefully acknowledge the diligent
efforts and commitments of all those who have contributed in preparation of the DPR.
 Content

List of Annexure…………………………………………………………………………………….….iv

List of Tables…………………………………………………………………………………………...iv

List of Figures…………………………………………………………………………………………..v

List of Abbreviation…………………………………………………………………………………….v

Executive summary……………………………………………………………………………………vi

About BEE’S SME program………………………………………………………………………….vii

1 INTRODUCTION ......................................................................................................... 1

1.1 About the SME cluster ................................................................................................. 1

1.2 Energy performance in Solapur textile cluster .............................................................. 3

1.2.1 Specific energy consumption ....................................................................................... 4

1.3 Identification of technology/equipment ......................................................................... 4

1.3.1 Description of technology/equipment to be replaced .................................................... 4

1.3.2 Role in process ............................................................................................................ 6

1.4 Establishing the baseline for the technology/equipment ............................................... 6

1.4.1 Energy audit methodology adopted ............................................................................. 7

1.4.2 Operating efficiency ..................................................................................................... 9

1.5 Barriers in adoption of proposed technology / equipments ........................................... 9

1.5.1 Technological Barrier................................................................................................... 9

1.5.2 Financial Barrier .......................................................................................................... 9

1.5.3 Manpower skill ........................................................................................................... 10

1.5.4 Other barrier (if any) .................................................................................................. 10

2 Technology/equipment for Energy Efficiency Improvements .............................. 11

2.1 Detail description of equipment .................................................................................. 11

2.1.1 Description of technology........................................................................................... 11

2.1.2 Equipment specification ............................................................................................. 12

2.1.3 Suitability with existing process.................................................................................. 13

2.1.4 Availability of equipment ............................................................................................ 13

2.1.5 Source of equipment supplier .................................................................................... 13

2.1.6 Technical specifications of equipment........................................................................ 13

2.1.7 Terms and conditions in sales of Energy efficient boiler ............................................. 14

2.1.8 Process down time during Implementation ................................................................ 14

2.2 Suitable unit for Implementation of proposed equipment ............................................ 14

3 ECONOMIC BENEFIT DUE USES OF NEW ENERGY EFFICIENT BOILER ........... 16

3.1 Technical benefit ....................................................................................................... 16

3.1.1 Fuel saving ................................................................................................................ 16

3.1.2 Electricity saving ........................................................................................................ 16

3.1.3 Improvement in product quality .................................................................................. 16

3.1.4 Increase in production ............................................................................................... 16

3.1.5 Reduction in raw material consumption ..................................................................... 16

3.2 Monetary benefits ...................................................................................................... 16

3.2 Social benefits ............................................................................................................ 17

3.2.2 Improvement in skill set of workers ............................................................................. 17

3.2.3 Impact on wages/emoluments .................................................................................... 17

3.3 Environmental benefits ............................................................................................... 17

3.3.2 Reduction in GHG emission such as CO2, NOx .......................................................... 17

3.3.3 Reduction in other emissions like SOx........................................................................ 17

4 INSTALLATION OF NEW ENERGY EFFICIENT EQUIPMENT ................................ 18

4.1 Cost of project .......................................................................................................... 18

4.1.1 Cost of equipment...................................................................................................... 18

4.1.2 Other costs ................................................................................................................ 18

4.2 Arrangement of funds ................................................................................................ 18

4.2.1 Entrepreneur’s contribution........................................................................................ 18

4.2.2 Loan amount ............................................................................................................. 18

4.2.3 Subsidy by Government............................................................................................. 19

4.2.3 Terms & conditions of loan ........................................................................................ 19

4.3 Financial indicators .................................................................................................... 19

4.3.1 Cash flow analysis ..................................................................................................... 19

4.3.2 Simple payback period .............................................................................................. 19

4.3.3 Net Present Value (NPV) ........................................................................................... 19

4.3.4 Internal rate of return (IRR)........................................................................................ 19

4.4 Sensitivity analysis..................................................................................................... 20

4.5 Procurement and implementation schedule ................................................................ 20

LIST OF ANNEXURE

Annexure – 1 Efficiency of the existing boiler - Direct Method (Mayuri Textiles) .................... 21

Annexure – 2 Process flow diagrams .................................................................................... 22

Annexure – 4 Drawings for proposed electrical & civil works ................................................. 24

Annexure- 5 Detailed financial calculations & analysis for financial indicators ....................... 25

Annexure -6 Details of procurement and implementation plan with schedule/timelines ......... 30

Annexure -7 Details of equipment service providers .............................................................. 31

Annexure - 8 Quotations or Techno-commercial bids for new technology/ equipment ........... 32

LIST OF TABLE

Table 1.1Energy consumption of a typical unit ........................................................................ 1

Table 1.2 Specific energy consumption of a typical unit .......................................................... 4

Table 2.1 Comparison of Inefficient boiler with Energy efficient boiler ................................... 12

Table 2.2: Technical specifications ........................................................................................ 13

Table 2.3: Terms & conditions of sale for energy efficient boiler ............................................ 14

Table 2.4 Details for sizing calculation of new energy efficient boiler..................................... 15

Table 3.1: Energy and cost benefit analysis of energy efficient boiler .................................... 16

Table 4.1: Details of project cost .......................................................................................... 18

Table 4.2: Financial indicator of project ................................................................................ 20

Table 4.3: Sensitivity analysis in different scenario ............................................................... 20

iv
LIST OF FIGURE

Figure 1.1 Process flow chart of typical textile unit ................................................................... 3

Figure 1.2 In-efficient boiler operations at typical textile industry ............................................. 5

Figure 2.1: Energy efficient wood fired boiler at typical textile industry .................................. 11

LIST OF ABBREVATIONS

BEE Bureau of Energy Efficiency

DPR Detailed Project Report

DSCR Debt Service Coverage Ratio

FD Forced Draft
GHG Green House Gases

HP Horse Power

IBR Indian Boiler Regulation

IRR Internal Rate of Return

ID Induced Draft

NPV Net Present Value

ROI Return on Investment

SME Small and Medium Enterprises

SIDBI Small Industries Development Bank of India

WHR Waste Heat Recovery

v
 EXECUTIVE SUMMARY

Zenith Energy Services Pvt. Ltd is executing BEE - SME program in Solapur textile cluster,
supported by Bureau of Energy Efficiency with an overall objective of improving the energy
efficiency in cluster units.

Since Solapur cluster is one of the largest clusters in textile sector in India, accordingly this
cluster was chosen for energy efficiency improvements by implementing energy efficient
technologies, so as to facilitate maximum replication in other textile clusters in India.

Solapur textile cluster is mainly famous for cotton towel and bed sheet products. The main form
of energy used in the cluster units are grid electricity, wood, and small quantity of coal. Wood
and coal are used in boiler for generating hot water which is further used in dyeing of yarn.

This DPR highlighted the energy, environment, economic and social benefits by replacing less
efficient existing technology i.e. conventional boiler with 200 kg/hr energy efficient boiler .

The project activities reduce overall wood consumption by 32 tonnes per year and there is no
saving in electricity consumption.

Project cost, debt equity ratio, monetary benefit, simple payback period, internal rate of return,
net present value, dept service coverage ratio etc for proposed energy efficient boiler are
furnished in table below:

S.No Parameter Unit Value

1 Project cost ` in lakh 2.97

2 Debit equity ratio Ratio 3:1

3 Monetary benefit ` in lakh 0.80

4 Simple payback period Years 3.7

5 Net present value in 3 years @ 10.00% ` in lakh 0.34

6 Internal rate of return % 14.26

7 Return on Investment % 21.34

8 Average debt service coverage ratio Ratio 1.50

9 Process down time during implementation Days 3

The projected profitability and financial indicators shows that the project will be able to earn
profit from inception and replacement of conventional boiler with energy efficient boiler project
is financially viable and technically feasible.

vi
 ABOUT BEE SME PROGRAMME
Bureau of Energy Efficiency (BEE) is implementing a BEE-SME Programme to improve the
energy performance in 25 selected SMEs clusters. Solapur Textile Cluster is one of them.
The BEE’s SME Programme intends to enhance the energy efficiency awareness by
funding/subsidizing need based studies in SME clusters and giving energy conservation
recommendations. For addressing the specific problems of these SMEs and enhancing
energy efficiency in the clusters, BEE will be focusing on energy efficiency, energy
conservation and technology up gradation through studies and pilot projects in these SMEs
clusters.

Major activities in the BEE -SME program are furnished below:

Energy use and technology studies

The energy use technology studies would provide information on technology status, best
operating practices, gaps in skills and knowledge on energy conservation opportunities,
energy saving potential and new energy efficient technologies, etc for each of the sub sector
in SMEs.

Capacity building of stake holders in cluster on energy efficiency

In most of the cases SME entrepreneurs are dependent on the locally available technologies,
service providers for various reasons. To address this issue BEE has also undertaken
capacity building of local service providers and entrepreneurs/ managers of SMEs on energy
efficiency improvement in their units as well as clusters. The local service providers will be
trained in order to be able to provide the local services in setting of energy efficiency projects
in the clusters

Implementation of energy efficiency measures

To implement the technology up gradation projects in clusters, BEE has proposed to prepare
the technology based detailed project reports (DPRs) for a minimum of five technologies in
three capacities for each technology.
Facilitation of innovative financing mechanisms for implementation of energy
efficiency projects

The objective of this activity is to facilitate the uptake of energy efficiency measures through
innovative financing mechanisms without creating market distortion.

vii
 Energy Efficient Boiler

1 INTRODUCTION

1.1 About the SME cluster

The products manufactured in Solapur Textile Cluster are cotton terry towels and bed sheets.
The towels and bed sheets manufactured in the Solapur cluster are renowned in the country
and have good market in India. The main raw material for the units is cotton yarn, which is
procured from local spinning mils and agents. The cost of energy (electrical and thermal
energy) as percentage of manufacturing cost varies between 8 and 10%.

Majority of the cluster units are of integrated type, where the raw material yarn is processed
in-house to the final product. The energy cost is second to the raw materials cost. Majority of
the units in the cluster are dependent on local / run of the mill technologies of low end and
with little investment initiatives and technology up-gradation.

The main energy forms used in the cluster units are grid electricity, wood, and small quantity
of coal. The electricity is used in power looms, doubling machines, winding machines, hydro
extractors, warping machines and lighting. Wood is used as fuel for thermic fluid heaters,
boilers and chulhas for hot water generation. The details of annual energy consumption of a
typical unit having a production capacity of approximately 2,16,000 kg are furnished in the
Table 1.1below:

Table 1.1Energy consumption of a typical unit

S.No Particular Unit Value

1 Electricity consumption MWh 175
2 Wood consumption Tonnes 72
3 Production kg 2,16,000

Production process

The main process operations for production of towels and bed sheets in cluster units are:

Doubling

In the Doubling process, thin single yarn is converted to double yarn for strengthening the
yarn by using doubling machine.
Yarn dyeing
Initially, the yarn is soaked in soap water for 24 hours to remove the dirt and other foreign
*Details of Mayuri Textiles, Solapur

1
 Energy Efficient Boiler

materials and then after yarn is taken for bleaching. Bleaching is carried out by soaking the
yarn in tanks mixed with bleaching agents and after completion of the process; the yarn is
washed with normal water.

The hank dyeing machine tanks are filled with required quantity of normal water and required
chemicals and dyeing agents are added. The temperature of the water is raised by oil
circulation or direct steam injection. Fire wood is used as fuel. The required colors are added
to the yarn and the dyeing process takes about 90 to 120 minutes per batch. After dyeing, the
yarn is washed with normal water, and the yarn is taken for soaping for colour fixation in hot
water for about 20 minutes in hank dyeing machines. The water is drained to the waste
drainage lines.

Drying

The wet yarn is taken to hydro extractors for removing the water in the yarn and taken for
drying in the natural sunlight.

Winding

The yarn after drying is taken for winding in which the yarn is wounded to bobbins and cones.
The winded yarn is taken for further process.

Warping

In warping, the winded yarn is wound to beams according to designed pattern (customized
designs). Then the beams are taken for Weaving.

Weaving

The beams, which are wound with yarn are taken and placed in power looms where the
designed pattern is already set. In power looms, the yarn is converted to final product (towel
or bed sheets) by weaving machine. The product obtained from weaving is taken for stitching
and packing. The general process flow diagram of a typical unit for production of towels and
bed sheets is furnished in Figure 1.1 below.

2
 Yarn (Raw material) Energy Efficient Boiler

Doubling (Double yarn) Electrical Energy

Reeling Electrical Energy

Energy consuming process

Dyeing

Thermal Energy

Electrical Energy

Drying Natural (or) Electrical Energy

Winding Electrical Energy

Warping Electrical Energy

Looms Electrical Energy

Stitching & packing

Figure 1.1 Process flow chart of typical textile unit

The production process as depicted above is similar for all textile units in Solapur textile
cluster. However, depending on type of product and product quality, the above stated process
flow varies as per the requirement.

1.2 Energy performance in Solapur textile cluster

The main energy sources for Solapur cluster units are electricity and fuels such as Wood &
GN Husk briquettes. The wood and GN husk briquettes are used as fuel for thermic fluid
heaters, boilers and chulhas for hot water generation and electricity is used for operation of
prime movers of doubling machine motors, ID fans, pumps, hank dyeing machine drives,

3
 Energy Efficient Boiler

power loom drives, winding machine motors, etc. Majority of the units in the Solapur textile
cluster are using wood for thermal energy generation due to easy availability and economical
point of view.

Energy cost is around 8 to 10 percent of manufacturing cost in typical manufacturing unit, out
of which the cost of thermal energy works out to 42 percent of the total energy cost and
remaining accounts for electrical energy.

In typical textile manufacturing unit, the annual electricity and wood consumption is 1, 75,400
kWh and 72 tonnes respectively. Average production capacity of typical textile manufacturing
unit is around 2, 16,000 kg per annum.

1.2.1 Specific energy consumption

Specific electrical and thermal energy consumption in textile units depends on the final
product manufactured in that unit. Specific electrical and thermal energy consumption of
typical textile unit of Solapur Textile cluster is 0.81 kWh/kg of final product and 0.50 kg of
wood /kg of final product respectively (includes all colours dyeing in cold water, medium
temperature water and high temperature water)

The electricity consumption for the boiler is not considered, as the capacity of the boiler feed
water pump is low accordingly the cost of energy consumption is negligible.

The average specific fuel consumption per kg of the yarn (dyeing process only) for 3 typical
units is furnished below in Table 1.2.

Table 1.2 Specific energy consumption of a typical unit

Fuel Consumption Production Specific energy

Name of unit kg kg consumption kCal/kg
Dyeing Soaping Dyeing Soaping Dyeing Soaping

Naval Textiles 150 50 400 400 1200 400

Jamuna Industries 200 100 600 600 1066 533

Mayuri Textiles 200 100 600 600 1066 533

1.3 Identification of technology/equipment

1.3.1 Description of technology/equipment to be replaced

During energy use and technology audit studies in various textile industries in Solapur textile
cluster, it has been observed that most of the textile units are using inefficient boilers for hot
4
 Energy Efficient Boiler

water generation whose efficiency is low. The performance of various existing boilers are
evaluated and analyzed for various losses are furnished in Annexure 1.

Figure 1.2 In-efficient boiler operations at typical textile industry

From energy use and technology gap audit studies in various textile industries in Solapur
textile cluster, the following were identified:

• Energy efficiency improvement opportunities

• Environment and working conditions improvement

• Design flaws in the conventional boiler

• Operational & maintenance practices in conventional boiler

Technical gap analysis in wood fired boiler

Technology gaps in wood fired inefficient boilers are identified and described in details below:

Poor heat transfer efficiency:

The present boiler is of single pass system. The heat transfer is poor due to low heat transfer
area and short contact time between flue gas and oil and hence leads to inefficiency and high
flue gas losses.

Heat loss from charging door:

5
 Energy Efficient Boiler

The fuel charging door remains more or less open during the entire operation due to various
reasons; those are human error and non compatibility of wood logs in combustion chamber or
Grate is not designed to accommodate wood log size and vice versa.

No waste heat recovery:

Though, the waste heat recovery (WHR) system doesn’t have potential in smaller size boilers,
as the boiler is of single pass system, hence there exists enormous potential in flue gases of
the boiler. The temperature of the flue gases is found to be in the range of 240 to 270 oC, as
the boiler is of single pass system. The high temperature flue gases is vented to the
atmosphere without any waste heat recovery

Low loading of the boiler:

The capacity utilization of the boiler is low and is less than 20% and hence considerable
reduction in thermal efficiency of the boiler.

No control on fuel firing:

In the existing boiler, there is no control over fuel firing in combustion chamber

Poor insulation on boiler:

The surface temperature of the boiler is high due to poor insulation leading to high radiation
losses

From the above mentioned analysis it is clear that the performance of the existing
conventional boiler is poor in terms of energy, environment and social aspects. Based on
above facts, the present inefficient boiler is to be replaced with new energy efficient boiler.

1.3.2 Role in process

For production of towels and bed sheets of different colours, the dyeing of cotton yarn is vital
and dyeing process requires hot water. The boiler is used for hot water generation required
for processing by directly injecting the steam into the water and also to maintain the constant
temperature during the dyeing and soaping process.

1.4 Establishing the baseline for the technology/equipment

Energy consumption in boiler would depend on below mentioned things

• Cold water temperature

• Dyeing temperature which depends on the color of the yarn

• Quantity of hot water required

6
 Energy Efficient Boiler

• Climate conditions

• Operational & maintenance practices in boiler

• Type of wood and its calorific value

Energy use and technology audit studies were conducted in various units of Solapur textile
cluster, the baseline energy consumption of present inefficient boilers and the performance of
the same is carried out and attached in Annexure 1.

1.4.1 Energy audit methodology adopted

The following methodology was adopted to evaluate the performance of boilers:

7
 Energy Efficient Boiler

Monitoring of wood consumption, Feed

water and Steam pressure

Identification of points for taking various

thermal measurements for temperature
and flue gas analysis

Onsite study of process and critical

parameters affecting the boiler operation
& Losses

Regular monitoring of boiler operating Regular monitoring of fuel consumption

parameters including flue gas analysis
rate

Collection of all standard data including

technical details of equipment and energy
consumption

Compiling the measurements and the data and

calculation of various losses and efficiency of
boiler

Performance evaluation of boiler

8
 Energy Efficient Boiler

1.4.2 Operating efficiency

The operating efficiency of the existing boiler is 32.6% and the details of operating
parameters recorded, estimation of various associated losses and efficiency of the boilers for
3 units is furnished in Annexure 1.

1.5 Barriers in adoption of proposed technology / equipments

Major barriers in the up gradation of technology in the cluster are

• Non availability of technology

• Distrust on technology supplier

• Lack of information about energy efficiency among all unit still persists

The other barriers identified for implementation of energy efficient in Solapur textile cluster are
presented in below sections.

1.5.1 Technological Barrier

The major technical barriers that prevented the implementation of new energy efficient boiler
are:

• Lack of awareness and information about the new and emerging energy efficient
technologies available in the market.

• Dependence on local equipment suppliers for uninterrupted after sales service

• The majority of the textile unit owners / entrepreneurs do not have in-depth technical
expertise

• The lack of technical know-how made it impossible for the textile unit owners to
identify the most effective technical measures.

1.5.2 Financial Barrier

Some major financial barriers which prevent the implementation of proposed technology are:

• Majority of the units in the cluster are of tiny and owners don’t have financial strength

• Implementation of the proposed project activity requires considerable investment of `

2.97 lakh, which is a significant investment and not commonly seen in the cluster for
energy efficiency.

• The majority of the unit owners are of the view that it makes business sense for them
to invest in enhancing production capacity rather than making investment in energy
efficiency.

9
 Energy Efficient Boiler

• The unit owners in the cluster are wary of approaching banks for financial assistance
due to their old perception that getting loan sanctioned from Banks involves lot of
paper work / documentation and needs collateral security. .

However, the financial attractiveness of the project activity may motivate the owners to move
forward in taking up initiatives in energy conservation and efficiency.

1.5.3 Manpower skill

The non-availability of skilled manpower in the cluster is one of the major barriers. Though,
the skilled manpower is available in the cluster, they are not aware of energy conservation /
efficiency and its importance.

The training with equipment suppliers for importance of energy use and conservation will
create awareness among workforce thereby make them aware about efficient use of energy
and its conservation.

1.5.4 Other barrier (if any)

The non-availability of local suppliers for new energy efficient boilers

10
 Energy Efficient Boiler

2 TECHNOLOGY/EQUIPMENT FOR ENERGY EFFICIENCY IMPROVEMENTS

2.1 Detail description of equipment

2.1.1 Description of technology

The new energy efficient wood fired boiler is a packaged, horizontal, 3 pass solid fuel fired
boiler with fully wet back for high energy efficiency. The boiler is of natural draft and suitable
for firing all kinds of solid fuels. The boiler is manually fired and simple designed for ease in
operation and maintenance.
. .

Figure 2.1: Energy efficient wood fired boiler at typical textile industry

The proposed energy efficient boiler mainly consists of the following elements.

• A feed water pump for supplying water to the boiler

• Grate and ash ports for fuel feeding and ash removal

• Refractory for minimizing radiation loss

• Control panel with fuse, temperature controls and contactors

• Insulation and mild steel cladding

Comparison of Inefficient boiler with new energy efficient boiler

The technical, economical, environmental and safety aspects of the present inefficient boiler
and new energy efficient boiler are compared on life cycle of equipment, and same is
presented in Table 2.1 below:

11
 Energy Efficient Boiler

Table 2.1 Comparison of Inefficient boiler with Energy efficient boiler

S. Details Inefficient Boiler Energy Efficient Boiler

No
1 Wood consumption High Low

2 Environment pollution High Low

3 Safety of workers Poor Good

4 Maintenance High Low

5 Operational cost High Low

Availability of local service
6 Yes Yes / limited
providers
Technical comparison between boiler & energy efficient boilers

7 Draught system Natural Natural

8 Fuel combustion Partial Complete

9 Waste heat recovery No Yes

Heat losses through grate and
10 High Low
surface
More due to insulation
11 Radiation losses Less
damage
Less (Single/two pass
12 Utilization of heat Maximum (three pass system)
system)
13 Capacity utilization Low Optimum

14 Combustion chamber Conventional Water walled

16 Operation and maintenance Less easy Easy

Time required for attaining the
17 More due to higher capacity Less, as optimum size boiler selected
water temperature

From the above table it is evident that energy efficient boiler has significant advantages over
existing conventional boilers w.r.t energy, environmental, economic & safety aspects. Hence,
it is justifiable to install energy efficient boiler in place of conventional boiler.

2.1.2 Equipment specification

Equipment specification of new wood fire energy efficiency boiler wood fired boiler along with

Term of sales, performance guarantee and after service set ails are furnished in Annexure 8.

12
 Energy Efficient Boiler

2.1.3 Suitability with existing process

New proposed equipment is used for hot water generation which is earlier generated by
conventional boiler. Hence new proposed equipment is completely suitable with existing
process.

2.1.4 Availability of equipment

The technology/equipment identified for implementation is available in PUNE, which is 200

KM from Solapur. Though, the local service providers are available, they don’t have technical
capability of fabricating the energy efficient designed boiler.

2.1.5 Source of equipment supplier

Technology/Service provider selected for implementation of the proposed energy efficiency

project is having experience in producing and supplying of energy efficient boilers, hot water
generators, waste heat recovery systems etc. Details of equipment supplier are given in
Annexure 7.

2.1.6 Technical specifications of equipment

Technical specifications of proposed energy efficient boiler are presented in Table 2.2 below:

Table 2.2: Technical specifications

Details Units Value

Name of equipment NA New energy efficient boiler

Model NA RSBW 200

Capacity kg/hr 200
Max temperature oC 179
Working pressure kg/cm2 10.5

Fuel used NA Wood

Fuel consumption kg/hr 27
Thermal efficiency % 65±2
Feed control NA Manual
Combustion Draft NA Induced
Water pump motor hp 1.0
Total connected load hp 1.5
Electric supply NA 3 PH,415 V,50 HZ,AC,4 wire
Dry weight(approx) kg 1400

13
 Energy Efficient Boiler

2.1.7 Terms and conditions in sales of Energy efficient boiler

The terms and conditions of sale of energy efficient boiler of the Ross Boilers are furnished
below:

Table 2.3: Terms & conditions of sale for energy efficient boiler

Price ` 3,95,000 (Ex-Works Unpacked)

Insurance 1% of Ex-works price

Taxes Excise: 8.24% (or) As applicable at the time of delivery

Advance 50% along with firm order. Balance 50% against Performa invoice prior to
Payment
dispatch
Delivery 6-8 weeks from the date of order with advance

Inspection Inspection of equipment prior dispatch, at your own cost

` 2500 per day plus to & fro charges at actual Lodging & boarding of our service
Commissioning
engineer to be arranged by the customer

Inspection At our works prior to dispatch

2.1.8 Process down time during Implementation

For implementation of the project activity, it is proposed to take about 6-7 days. Details of
complete process down time are given in Annexure 6.

2.2 Suitable unit for Implementation of proposed equipment

The energy efficient boilers are available in different capacities like 200, 400, 600 kg/hr. For
this DPR, the capacity of 200 kg/hr is selected based on assessment carried out in sample of
units. About 400 kg of dyeing alone and about 400 kg of soaping alone can be done in 6
hours of operations. The capacity had been justified based on the following assumptions:

• Time required for dyeing with hot water is 1hr and 45 minutes including loading and
unloading

• Time required for soaping is 45 minutes including loading and unloading

• About 600 kg yarn dyeing in a day

• About 600 kg yarn soaping in a day

• Dark colour dyeing is carried out for one or two batches in a day as per the
requirement.

14
 Energy Efficient Boiler

Capacity of new energy efficiency has been calculated considering above assumption are
furnished in Table 2.4 below:

Table 2.4 Details for sizing calculation of new energy efficient boiler

S.No Particular unit value

1 Operating hour hr 8

2 Total no of batch required NA 5

3 Hot water per batch liter 1100

4 Total quantity of hot water required liter 5500

5 Temperature of feed water oC 25

5 Temperature of hot water required oC 55

6 Heat required for hot water generation kCal/day 1, 65,000

Heat required for maintaining the Water temperature during
7 kCal/day 1,50,000
process

8 Total heat required kCal/day 3,15,000

8 Heat to required at 60% efficiency kCal/day 5,25,000

9 Heat required at 80% heat transfer efficiency kCal/day 6,56,000

10 Heat required at 80% loading of the boiler kCal/day 8,20,000

11 Equivalent steam kg/day 1261

12 Steam quantity per hour for 8 hours operation kg/hr 157

Based on above calculation, it is suggested to replace the present conventional boiler with
energy efficient boiler of suitable capacity of 200 kg/hr.

15
 Energy Efficient Boiler

3 ECONOMIC BENEFIT DUE USES OF NEW ENERGY EFFICIENT BOILER

3.1 Technical benefit

3.1.1 Fuel saving

Based on the detailed studies carried out in various units of Solapur textile cluster, the
average wood consumption in a typical unit is 72 tonnes per annum. Whereas, the estimated
wood consumption of proposed energy efficient boiler for the same production and steam
generation is 40 tonnes per annum thereby, wood saving would be 32 tonnes per annum.

3.1.2 Electricity saving

Project implementation will lead no saving of electricity consumption, as the energy efficient
boiler is of natural draft.

3.1.3 Improvement in product quality

Product quality achieved would be same as the present quality. It does not have any impact in
improving the quality of the product.

3.1.4 Increase in production

The proposed equipment does not contribute to any increase in production.

3.1.5 Reduction in raw material consumption

Raw material consumption is same even after the implementation of proposed technology.

3.2 Monetary benefits

Annual monetary savings due to implementation of energy efficient boiler in place of the
conventional boiler is ` 2.97 lakh per annum. Energy & monetary benefit analysis of energy
efficient boiler is presented in Table 3.1 below:

Table 3.1: Energy and cost benefit analysis of energy efficient boiler

S.No Parameter Unit Value

1 Wood consumption in existing boiler Tonnes/annum 72
2 Operational hours hours 8
3 Operational days per annum Days 240
4 Wood consumption in proposed equipment Tonnes/annum 40
5 Wood saving Tonnes/annum 32
6 Cost of wood `/Tonne 2500
7 Total monetary benefit ` in lakh 0.80

16
 Energy Efficient Boiler

3.2 Social benefits

3.2.1 Improvement in working environment in the plant

The energy measures identified will utilize state-of-the-art technologies to ensure energy
efficiency and energy conservation of non renewable wood. The replacement of inefficient
boiler with energy efficient boiler will reduce the fuel consumption and will improve the work
condition and environment. As the project activity will have less radiation losses.

3.2.2 Improvement in skill set of workers

The training provided by equipment suppliers will improve the technical skills of manpower for
better operation and maintenance of boiler. Hence the technology implemented will create
awareness about energy conservation among the worker and improves skill set of workers.

3.2.3 Impact on wages/emoluments

The awareness about the technologies and training imparted during implementation of the
project will lead to direct and indirect increase in the wages of the employees, as it improves
the technical skills of the workforce

3.3 Environmental benefits

3.3.1 Reduction in effluent generation

There is no significant impact in effluent generation due to implementation of the project

3.3.2 Reduction in GHG emission such as CO2, NOx

Implementation of this project will lead to reduction in CO2 emissions due to reduction in
overall fuel consumption. Implementation of this project will result in saving of 30 tonnes of
wood per year thereby; reduce 45 tonnes CO2 emissions per year from one unit. Similarly,
there are many similar type of unit in Solapur, and if all units will implement this project then
significant amount of CO2 emission reduction possible per year. This will also help in getting
the carbon credit benefit through Clean Development Mechanism (CDM) project.

Taking CO2 emission factor is 1.4 tCO2 per tonnes of wood consumption

3.3.3 Reduction in other emissions like SOx

As wood doesn’t contain sulphur and hence there is no impact on SOx emissions.

3.3.4 Reduction of deforestation

Reduction in wood consumption will automatically reduce the deforestation

17
 Energy Efficient Boiler

4 INSTALLATION OF NEW ENERGY EFFICIENT EQUIPMENT

4.1 Cost of project

4.1.1 Cost of equipment

The total cost of equipment and machinery is estimated `2.50 lakh, which includes boiler,
pumps, refractory lining, insulation, induced draft fan, chimney, electrical works and control
panel with temperature controllers.

Though the cost of boiler as per quotation of the recommended technology supplier is `3.95
lakh it is assumed that due to volume of business from number of units of the cluster the final
price to the technology seeking units would be `2.50 lakh only after providing for discount
etc..

4.1.2 Other costs

Other cost includes erection & commissioning cost which is ` 0.14 lakh, civil works which is `
0.25 lakh and interest during implementation which is ` 0.08 lakh. The total cost of
implementation of the energy efficient boiler is estimated at ` 2.97 lakh and furnished in Table
4.1 below:

Table 4.1: Details of project cost

Cost
S.No Details
(` in lakh)
1 Equipment and machinery 2.50

2 Erection & Commissioning 0.14

3 Civil works 0.25

4 Interest during implementation 0.08

5 Total 2.97

4.2 Arrangement of funds

4.2.1 Entrepreneur’s contribution

The total cost of the proposed technology is estimated at ` 2.97 lakh. The entrepreneur’s
contribution is 25% of total project cost, which is ` 0.75 lakh.

4.2.2 Loan amount

The term loan is 75% of the total project cost, which is ` 2.22 lakh.

18
 Energy Efficient Boiler

4.2.3 Subsidy by Government

As the overall energy efficiency in the project is more than 15% it qualifies for subsidy of 25 %
of the project cost as per the NMCP scheme of Ministry of MSME, GoI. 25 % of the project
cost in this case works out to ` 0.75 lakh. As the subsidy is normally available after
implementation of the project the same has not been taken in the project cost and means of
finance. On receipt of subsidy from Ministry of MSME, GoI through the nodal agency the
amount of subsidy is generally set off [reduced] from the loan outstanding by the lender bank.
Availability of this subsidy will make the project economically more attractive.

4.2.3 Terms & conditions of loan

The interest rate is considered at 10% which is SIDBI’s rate of interest for energy efficient
projects. The loan tenure is 5 years excluding initial moratorium period is 6 months from the
date of first disbursement of loan.

4.3 Financial indicators

4.3.1 Cash flow analysis

Considering the above mentioned assumptions, the net cash accruals starting with ` 0.29 lakh
in the first year operation and gradually increases to ` 0.56 lakh at the end of sixth year.

4.3.2 Simple payback period

The total project cost of the proposed technology is ` 2.97 lakh and monetary savings due to
reduction in wood consumption is ` 0.80 lakh hence the simple payback period works out to
be 3.7 years.

4.3.3 Net Present Value (NPV)

The net present value of the investment at 10 % works out to be ` 0.34 lakh.

4.3.4 Internal rate of return (IRR)

The after tax internal rate of return of the project works out to be 14.26%. Thus the project is
financially viable.

4.3.5 Return on investment (ROI)

The average return on investment of the project activity works out at 21.34%.

Details of financial indicator are shown in Table 4.2 below:

19
 Energy Efficient Boiler

Table 4.2: Financial indicator of project

S.No Particulars Unit Value

1 Simple Pay Back period Month 26
2 IRR %age 14.26
3 NPV lakh 0.34
4 ROI %age 21.34
5 DSCR Ratio 1.50

4.4 Sensitivity analysis

A sensitivity analysis has been carried out to ascertain how the project financials would
behave in different situations like when there is an increase in fuel savings or decrease in fuel
savings. Following two scenarios has been considered

• Increase in fuel savings by 5%

• Decrease in fuel savings by 5%

In each scenario, other inputs are assumed as constant. The financial indicators in each of
the above situation are indicated along with standard indicators.

Table 4.3: Sensitivity analysis in different scenario

Particulars DSCR IRR ROI NPV

Normal 1.50 14.26% 21.34% 0.34
5% increase in fuel savings 1.57 16.55% 27.79% 0.63
5% decrease in fuel savings 1.42 12.42% 26.56% 0.23

4.5 Procurement and implementation schedule

The project is expected to be completed in 12 weeks from the date of financial closure. The
detailed of procurement and implementation schedule of project implementation is furnished
in Annexure 6.

20
 Energy Efficient Boiler

Annexure

Annexure – 1 Efficiency of the existing boiler - Direct Method (Mayuri Textiles)

S.No Particular Unit Value

1 Boiler Capacity kg/hr 200

2 Steam pressure kg/cm2 5

3 Operating hours hrs 8

4 Quantity of steam generated kg/day 500

5 Boiler feed water temperature 0C 30

6 Fuel Consumption kg/day 300

7 Calorific value of fuel kCal/Kg 3200

8 Enthalpy of steam (@ 5 kg/ cm2 ) kCal/Kg 656

9 Heat Input kCal/day 9,60,000

10 Heat output kCal/day 3,13,150

11 Efficiency %age 32.6

21
 Energy Efficient Boiler

Annexure – 2 Process flow diagrams

Yarn

Doubling Yarn

Dyeing & Washing

(Hang dyeing machine) (60 0C) (Hydro extractor)

Drying

Winding

Warping

Power looms

Stitching

Finished Product

22
 Energy Efficient Boiler

Annexure - 3 Detailed technology assessment reports

Value
S.No Particular Unit
Existing Proposed
equipment equipment
1 Operating hour hr 8 8

2 Operating days days 240 240

3 Temperature of feed water 0C 25 25

4 Temperature of hot water 0C 55 55

5 Quantity of hot water required litre/day 5500 5500

6 Steam pressure kg/cm2 5 10.5

7 Calorific value of wood kCal/kg 3200 3200

8 Wood consumption tonne 72 42

9 Efficiency of equipment %age 30 -35 65±2

10 Saving of wood consumption tonne NA 30

11 Cost of wood ` / tonnes 2500 2500

12 Monetary saving ` in lakh NA 0.80

13 Cost of project ` in lakh NA 2.97

23
 Energy Efficient Boiler

Annexure – 4 Drawings for proposed electrical & civil works

24
 Energy Efficient Boiler

Annexure- 5 Detailed financial calculations & analysis for financial indicators

Assumptions

Name of the Technology Energy Efficient Boiler

Rated Capacity 200 kg/hr
Detail Unit Value
Installed Capacity kg/hr 200 Feasibility Study
No of working days Days 240 Feasibility Study
No of Shifts per day Shifts 1 Feasibility Study
Capacity Utilization Factor %age NA Feasibility Study
Proposed Investment
Plant & Machinery `(in lakh) 2.75 Feasibility Study
% on Plant &
Erection & Commissioning (5%) 0.14 Feasibility Study
Equip
Investment without IDC ` (in lakh) 2.89 Feasibility Study
Interest During Implementation ` (in lakh) 0.08 Feasibility Study
Total Investment ` (in lakh) 2.97 Feasibility Study
Financing pattern
Own Funds (Internal Accruals) ` (in lakh) 0.75 Feasibility Study
Loan Funds (Term Loan) ` (in lakh) 2.22 Feasibility Study
Loan Tenure Years 5 Assumed
Moratorium Period Months 6 Assumed
Repayment Period [excluding
Months 60 Assumed
moratorium]
SIDBI’s rate of interest for energy
Interest Rate %age 10
efficiency project
Estimation of Costs
O & M Costs % Plant & Equip 4.00 Feasibility Study
Annual Escalation %age 5.00 Feasibility Study
Estimation of Revenue
Wood savings tonnes / year 32
Cost ` / tonne 2500
St. line Depn. %age 5.28 Indian Companies Act

25
 Energy Efficient Boiler

Estimation of Interest on Term Loan (` in lakh)

Opening
Years Balance Repayment Closing Balance Interest

1 2.22 0.18 2.04 0.20

2 2.04 0.36 1.68 0.19
3 1.68 0.38 1.30 0.15
4 1.30 0.42 0.88 0.11
5 0.88 0.66 0.42 0.07
6 0.42 0.42 0.00 0.01
2.22

WDV Depreciation:
Particulars / years 1 2 3 4 5 6
Plant and Machinery
Cost 2.97 2.52 2.15 1.82 1.55 1.32
Depreciation 0.45 0.38 0.32 0.27 0.23 0.20
WDV 2.52 2.15 1.82 1.55 1.32 1.12

Projected Profitability

Particulars / Years 1 2 3 4 5 6
Revenue through
Savings
Fuel savings 0.80 0.80 0.80 0.80 0.80 0.80
Total Revenue (A) 0.80 0.80 0.80 0.80 0.80 0.80
Expenses
O & M Expenses 0.12 0.12 0.13 0.14 0.14 0.15
Total Expenses (B) 0.12 0.12 0.13 0.14 0.14 0.15
PBDIT (A)-(B) 0.68 0.68 0.67 0.66 0.66 0.65
Interest 0.20 0.19 0.15 0.11 0.07 0.01
PBDT 0.48 0.49 0.52 0.55 0.59 0.64
Depreciation 0.16 0.16 0.16 0.16 0.16 0.16
PBT 0.32 0.33 0.36 0.39 0.43 0.48
Income tax 0.01 0.04 0.07 0.09 0.12 0.15
Profit after tax (PAT) 0.31 0.29 0.29 0.30 0.31 0.33

26
 Energy Efficient Boiler

Computation of Tax ` (in lakh)

Particulars / Years 1 2 3 4 5 6
Profit before tax
0.32 0.33 0.36 0.39 0.43 0.48
Add: Book depreciation
0.16 0.16 0.16 0.16 0.16 0.16
Less: WDV depreciation
0.45 0.38 0.32 0.27 0.23 0.20
Taxable profit
0.04 0.11 0.20 0.28 0.36 0.44
Income Tax
0.01 0.04 0.07 0.09 0.12 0.15

Projected Balance Sheet ` (in lakh)

Particulars / Years 1 2 3 4 5 6

Liabilities
Share Capital (D) 0.75 0.75 0.75 0.75 0.75 0.75
Reserves & Surplus (E) 0.31 0.61 0.90 1.20 1.51 1.84
Term Loans (F) 2.04 1.68 1.30 0.88 0.42 0.00
Total Liabilities D)+(E)+(F) 3.10 3.04 2.95 2.83 2.68 2.59

Assets
Gross Fixed Assets 2.97 2.97 2.97 2.97 2.97 2.97
Less: Accm. Depreciation 0.16 0.31 0.47 0.63 0.78 0.94
Net Fixed Assets 2.81 2.65 2.50 2.34 2.19 2.03
Cash & Bank Balance 0.29 0.38 0.45 0.49 0.49 0.56
TOTAL ASSETS 3.10 3.04 2.95 2.83 2.68 2.59
Net Worth 1.06 1.36 1.65 1.95 2.26 2.59
Debt Equity Ratio 1.92 1.24 0.79 0.45 0.19 0.00

Projected Cash Flow: ` (in lakh)

Particulars / Years 0 1 2 3 4 5 6
Sources
Share Capital 0.75 - - - - - -
Term Loan 2.22
Profit After tax 0.31 0.29 0.29 0.30 0.31 0.33
Depreciation 0.16 0.16 0.16 0.16 0.16 0.16
Total Sources 2.97 0.47 0.45 0.45 0.46 0.47 0.49
Application
Capital Expenditure 2.97
Repayment of Loan 0.18 0.36 0.38 0.42 0.46 0.42

27
 Energy Efficient Boiler

Total Application 2.97 0.18 0.36 0.38 0.42 0.46 0.42

Net Surplus - 0.29 0.09 0.07 0.04 0.01 0.07
Add: Opening Balance - - 0.29 0.38 0.45 0.49 0.49
Closing Balance - 0.29 0.38 0.45 0.49 0.49 0.56

Calculation of Internal Rate of Return ` (in lakh)

Particulars / months 0 1 2 3 4 5 6
Profit after Tax 0.31 0.29 0.29 0.30 0.31 0.33
Depreciation 0.45 0.38 0.32 0.27 0.23 0.20
Interest on Term Loan 0.20 0.19 0.15 0.11 0.07 0.01
Salvage/Realizable value -
Cash outflow (2.97) - - - - - -
Net Cash flow (2.97) 0.96 0.86 0.77 0.69 0.61 0.54
IRR 14.26%

NPV 0.34

Break Even Point ` (in lakh)

Particulars / Years 1 2 3 4 5 6
Variable Expenses
Oper. & Maintenance Exp (75%)
0.09 0.09 0.10 0.10 0.11 0.11
Sub Total (G) 0.09 0.09 0.10 0.10 0.11 0.11
Fixed Expenses
Oper. & Maintenance Exp (25%) 0.03 0.03 0.03 0.03 0.04 0.04

Interest on Term Loan 0.20 0.19 0.15 0.11 0.07 0.01

Depreciation (H) 0.45 0.38 0.32 0.27 0.23 0.20
Sub Total (I) 0.68 0.60 0.51 0.42 0.34 0.25
Sales (J) 0.80 0.80 0.80 0.80 0.80 0.80
Contribution (K) 0.71 0.71 0.70 0.70 0.69 0.69
Break Even Point (L= G/I) 94.97% 84.57% 72.12% 60.32% 48.67% 36.13%
Cash Break Even {(I)-(H)} 32.31% 30.97% 26.26% 21.06% 15.05% 7.33%
BREAK EVEN SALES (J)*(L) 0.76 0.68 0.58 0.48 0.39 0.29

28
 Energy Efficient Boiler

Return on Investment ` (in lakh)

Particulars / Years 1 2 3 4 5 6 Total
2.32
Net Profit Before Taxes 0.32 0.33 0.36 0.39 0.43 0.48
Net Worth 1.06 1.36 1.65 1.95 2.26 2.59 10.87

21.34%

Debt Service Coverage Ratio ` (in lakh)

Particulars / Years 1 2 3 4 5 6 Total
Cash Inflow
Profit after Tax 0.31 0.29 0.29 0.30 0.31 0.33 1.84
Depreciation 0.45 0.38 0.32 0.27 0.23 0.20 1.85
Interest on Term Loan 0.20 0.19 0.15 0.11 0.07 0.01 0.73
TOTAL (M) 0.96 0.86 0.77 0.69 0.61 0.54 4.42

Debt
Interest on Term Loan 0.20 0.19 0.15 0.11 0.07 0.01 0.73
Repayment of Term Loan 0.18 0.36 0.38 0.42 0.46 0.42 2.22
TOTAL (N) 0.38 0.55 0.53 0.53 0.53 0.43 2.95
Average DSCR (M/N) 1.50

29
 Energy Efficient Boiler

Annexure -6 Details of procurement and implementation plan with schedule/timelines

Details of procurement and implementation –Energy Efficient Boiler

S. No Activity Weeks
1-2 2-4 4-6 6-8 8 - 10
Collection of quotations and order
1
finalization
Designing by the supplier as per the
2
requirement
Fabrication at the equipment supplier
3
workshop
4 Delivery

Commissioning , Trial runs and

5
Insulation

Break up of process down time

S. Activities Days
No.
1 2 3 4 5 6 7

1 Time required for dismantling or

re-location of the existing boiler

2 Civil works and curing

3 Installation

4 Commissioning, Trial &

Insulation

Note: The Process down time is considered for item 1, 3 and 4 only. As the civil foundations and
installation of water storage tanks and water distribution lines are laded during plant in operation.

30
 Energy Efficient Boiler

Annexure -7 Details of equipment service providers

Equipment details Service/technology providers

Energy efficient boilers

Thermax Ltd.
Dhanraj Mahal, 2nd Floor,
Chatrapati Shivaji Maharaj Marg,
Nr. Gateway of India
Mumbai - 400 039
Ph : 022 - 6754 2222
Fax : 022 - 22040859

Ross Boilers
Address : 33, Al Ameen Society, Gultekdi, Pune -
411037, Maharashtra, India
Phone : 91-20-24269393/24272293/24274717
Fax : 91-20-24272293/24269562

Balkrishan Boilers Pvt. Ltd.

Plot No. 78/8, GIDA Vatva Opp. Abad Bread,
Ahmedabad-382445. Gujarat, India
Ph. O) +91- 079 – 25894701
Fax: +91- 079 - 25894702
Email: [email protected]
[email protected]

31
 Energy Efficient Boiler

Annexure - 8 Quotations or Techno-commercial bids for new technology/ equipment

32
 Standard application form for financial assistance to existing units
(upto and including Rs. 50 lakh)

I Applicant details
1 Name of Unit
2 Address for correspondence
3 Constitution
4 SSI Registration. No.
5 Date of Incorporation
6 Date of Commencement of Operations
7 Activity / Industry

Registered Office Factory / Service Factory / Service

Establishment (existing) Establishment
(proposed)
Full Address
Contact Person(s)
Tel No.
Fax No.
E mail address

II Promoters/Directors

Bio-data of all the promoters/directors of the unit (Preferably make separate sheet for
each promoter/director)

Promoter/Director
Name
Full Address( incl Tel no./ mobile no)
Age
Passport No.
Father's / husband's name
Qualification
Experience
Functional responsibility in the unit
Relationship with Chief Promoter
Shareholding in the unit
Net worth

Pl. furnish details of any other shareholder having more than 5% in the unit.

Page 1 of 7
 Application form for
Loans upto and including Rs. 50 lakh

III. Products Manufactured

Sl. Product Installed capacity Present capacity End use of product Export
No. p.a. utilisation orientation
Yes/ No

IV. Existing Facilities with Banks /FIs incl. SIDBI

a Name of the Bank(s) / FI, Branch,

b Dealing person and contact tel. no.(s)..
c Dealing since (each Bank / FI)

Facilities enjoyed :

Nature of facility Amount (Rs. lakh) Rate of Nature of Security and

(bankwise) interest value
Sanctioned Outstanding as on ___
Fund based ___
Basedkfjdffkldkfjdfkjdfkjdfkdjfkdjf
-Term Loan
-Working capital
Non Fund Based

Are there any defaults ? Yes/No

V. Financial Position of applicant unit/ associate concern

(Rs. lakh)
Net-worth Sales Net profit
Y1 Y2 Y3 Y1 Y2 Y3 Y1 Y2 Y3
Applicant unit
Associate concern I
Associate concern II

Details of Associate concerns to be given as per Annexure I.

VI. Project Details

6.1. Purpose for which assistance now required :

Purpose
1 Indicate whether Expansion /diversification / Technology Upgradation for Energy
modernisation and details Efficiency
2 If new products envisaged give details N/A
3 Details of expected incremental qualitative / quantitative Saving in the fuel bill to the extent of 20-25%
benefits leading to commensurate improvement in
the bottom line of the applicant unit.
4 Expected month/year of implementation 10 months
5 No. of employees existing and additional

Page 2 of 7
 Application form for
Loans upto and including Rs. 50 lakh

Cost of Project (Rs. Lakh)

S. No Details Total Amount

1 Civil Works 0.20

2 Plant & Machinery (incl. installation) * 2.80
-Indigenous
-Imported
3 Erection & commisioning charge 0.30
4 Preliminary & pre-operative expenses 0.09
5 &
Contingency provision, if any (basis)
TOTAL 3.39
* Details of Plant and machinery/ Misc. fixed assets at Annexure II and III

Indicate details of expenditure already incurred, if any and how the expenditure was financed ?
6.3. Means of Finance
(Rs. Lakh)
S. No. No. Details Total
1 Additional share capital / Internal accruals 0.85
2 Interest free Unsecured Loans
3 Term Loan proposed from SIDBI / Banks 2.54
Total 3.39

6.4 Whether additional Working Capital required for the unit. If yes, amount and arrangements
proposed may be indicated:

6.5 Technology

S. No. Item
1 Any Technical collaboration? If yes, details
2 Details of main technical professionals employed
3 Any quality certification obtained ? If yes enclose certificate.

6.6 Raw material / Labour/ Utilities

1 Raw material
(Details, arrangement, sources and
distance)
2 Power Connected Load

Utilised load

Requirement of power for Additional machines

Back-up arrangement (DG)

3 Other critical inputs if any

Page 3 of 7
 Application form for
Loans upto and including Rs. 50 lakh

6.7 Marketing & Selling Arrangements

Items Applicants remarks

Main Markets (Locations)
Main buyers, Indicate clearly if the unit is relying on a single buyer
Locational
Indicate advantages
competitors
Whether product has multiple applications
Distribution channels ( e.g. direct sales, retail network, distribution network )
Marketing team details, if any.
Orders on hand (enclose copies)

6.8 Projected profitability : Statement to be enclosed as per Annexure IV.

6.9 Others

Items
Please indicate the various licenses / consents for the project / unit already obtained
from the respective authorities
Please indicate licenses / consents for the project / unit that are yet to be obtained.
Category as per pollution control dept. If polluting, pollution control measures taken
Whether the project is entitled for any govt. subsidy, tax exemptions. Details thereof
Repayment period (in months) sought including repayment holiday requested, if any,
Details of Collateral security offered and value (basis).
List of guarantors for the proposed loan
Enclose documents as indicated in the check list at Annexure V.

6.10 Strengths / Weaknesses of the borrower (such as market standing, product/ service
differentiation, technical expertise, infrastructure facilities etc.)
Strengths

Weaknesses

DECLARATION
I/We certify that all information furnished by me/ us above and in the appendix/ annexures/
statements and other papers enclosed is true; I/we have no borrowing arrangements for the unit
with any bank / FI except as indicated in the application; that there are no overdues / statutory
dues/government enquiry/proceedings/prosecution against the unit/associate concerns/
promoters/directors except as indicated in the application; that no legal action has been/ is being
taken against the unit/associate concerns/promoters/directors; that I/ we shall furnish all other
information that may be required by SIDBI in connection with my/our application and I/ We have no
objection to your furnishing the information submitted by me/ us to any agency as you may deem
fit in connection with consideration of the assistance. We have no objection to SIDBI/ its
representatives making suitable enquiries while considering the application.
Place : Signature
Date Name & Designation

Page 4 of 7
 Application form for
Loans upto and including Rs. 50 lakh

Annexure I
Details of Associate Concerns

Name , Address & products Existing Name & Address of existing Facilities Enjoyed Share holding of
manufactured since Banker (s) the main
promoter(s) of
applicant unit

Annexure II

Particulars of machinery proposed for the project

Name of Name of manufacturer, Lead time Invoice Purpose Basis of Remarks

machinery, contact person, for delivery price (for /use of selection of reg. after
(model / e-mail address of indigenous machine supplier sale
specification) telephone no. machinery machinery)/ service
CIF price etc.
(for
imported )
(Rs. lakh)
Wood Fired Ross Boilers 6 3.95 Water Crediability
IBR Steam Address : 33, Al Ameen Weeks Heating of the
Boiler Society, Gultekdi, Pune - Technolgy
411037, Maharashtra, India Provider
Phone : 91-20-4269393/
24272293/24274717
Fax : 91-20-24272293/
24269562

Furnish competitive quotations, catalogues / invoice for each machinery proposed to be acquired

In case of second hand /fabricated machinery, indicate the need / reasons for acquiring such
machinery. Also enclose Chartered Engineer's certificate regarding residual value and life in respect of
second hand machinery.

Annexure III
Details of Misc. Assets / equipment Proposed

S.No. Name of item Supplier Cost Purpose/ use of MFA Remarks

(Rs. lakh)

Page 5 of 7
 Application form for
Loans upto and including Rs. 50 lakh

Annexure IV
Profitability projections for the Unit/ Company as a whole*
S.No. Item Actuals for Y1 Y2 Y3 Y4 Y5 Y6 TOTAL
previous
year
1 Total Income 0.80 0.80 0.80 0.80 0.80 0.80 4.80
2 Raw materials
Power and fuel 0.12 0.12 0.13 0.14 0.14 0.15 0.80
Wages and salaries
Selling expenses
Other expenses
Total Cost 0.12 0.12 0.13 0.14 0.14 0.15 0.80
3 Profit before depreciation, 0.68 0.68 0.67 0.66 0.66 0.65 4.00
Interest and taxes (PBDIT) (2 -
1)
4 Interest on Term Loan 0.20 0.19 0.15 0.11 0.07 0.01 0.63
5 Interest on Working Capital
6 Interest on unsecured loans
7 Depreciation 0.16 0.16 0.16 0.16 0.16 0.16 0.96
8 Profit before Tax (3 - 4 - 5 - 6 0.32 0.33 0.36 0.39 0.43 0.48 2.41
- 7)
9 Tax 0.01 0.04 0.07 0.09 0.12 0.15 0.48
10 Profit after Tax (8 - 9) 0.31 0.29 0.29 0.30 0.31 0.33 1.93
11 Dividends/ Withdrawals
12 Cash Accruals ( 10 - 11 + 7) 0.47 0.45 0.45 0.46 0.47 0.49 2.89
13 Repayments of all term 0.18 0.36 0.38 0.42 0.46 0.42 2.22
liabilities (Principal)
14 Debt Service Coverage Ratio 2.52 1.57 1.44 1.29 1.16 1.25
((10+7+4)/(13+4))
15 Average DSCR (Total of 1.50
10+7+4 for projected
period/(Total of 13+4 for
projected period)

* Please give projections for the entire tenure of SIDBI / Bank loan.

Page 6 of 7
 Application form for
Loans upto and including Rs. 50 lakh

Annexure V
CHECK LIST of documents to be
submitted along with the application

S. No. Documents Y/N Reasons for Non-submission

1 SSI Regn. / CA certificate certifying SSI
status
2 Certified copies of Memorandum & Articles
of association / Partnership Deed
3 Audited financial results for the last three
years of Applicant unit
4 Copies of lease deed / sale deed on which
the unit is situated
5 Copies of sanction letters from commercial
banks / FIs which have sanctioned
assistance to the unit
6 NOC from pollution control board/consent
letter, if applicable
7 IT Returns/Assessment orders/Sales tax
returns of the Applicant Unit/
promoters/directors for 2 years
8 List of existing plant and machinery
9 Competitive quotations for machines and
Misc. fixed assets proposed to be
acquired under the scheme
10 Duly signed latest net worth statements of
promoters/directors & guarantors in SIDBI
format; In case of guarantors please
furnish, Name, Age, Father's/Husband's
name, residential address. Details of
similar guarantee, if any, given to other
institutions
11 2 sets of photographs along with
signatures of all
promoters/directors/guarantors duly
certified by a Bank or Gazetted Officer.
12 Audited financial results for last three
years for each associate concerns. If
applicable.
13 Copy of title deed of collateral security and
valuation report

*****

Page 7 of 7
 Bureau of Energy Efficiency (BEE)
(Ministry of Power, Government of India)
4th Floor, Sewa Bhawan, R. K. Puram, New Delhi – 110066
Ph.: +91 – 11 – 26179699 (5 Lines), Fax: +91 – 11 – 26178352
Websites: www.bee-india.nic.in, www.energymanagertraining.com

Zenith Energy Services Pvt. Ltd India SME Technology Services Ltd
10-5-6/B, My Home Plaza, Masab DFC Building, Plot No.37-38,
Tank HYDERABAD, AP 500 028 D-Block, Pankha Road,
Phone: 040 23376630, 31, Institutional Area, Janakpuri, New Delhi-110058
Fax No.040 23322517 Tel: +91-11-28525534, Fax: +91-11-28525535
Website: www.zenithenergy.com Website: www.techsmall.com