PRE FEASIBILITY REPORT

PRE FEASIBILITY REPORT 1.0 EXECUTIVE SUMMARY AND INTRODUCTION OF THE PROJECT Sri Krishna Phramaceuticals Ltd., (SKPL) Solapur has been incorporated with a main objective to manufacture Bulk Drug and Intermediates which have a good export potential. The ever-increasing demand in India and abroad has prompted the promoters to undertake manufacturing of some selected Bulk Drugs and Intermediates. The proposed project s site is located in Chincholi MIDC; Solapur. As per as the provision of EIA Notification S. O. 1533 (E) dated 14.09.2006; amendments thereat the proposed project comes under Category B. The boundary of Great Indian Bustard Sanctuary is located within 5 km of the project area. Hence the category of the industrial unit has been classified as A instead of B. The promoters have sound experience in the field of Bulk Drugs and Intermediates manufacturing. Moreover, a thorough study of entire project planning as well as implementation schedule has been made by the promoters of SKPL. Table 1List of Promoters Name Designation 1. Dr. Subba Reddy Chairman 2. Mr. V V Krishna Reddy Managing Director 1.1. Need of the Project The Indian Pharmaceutical Industries today is in the front rank of India s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. Bulk drugs have become a part of our life for sustaining many of our day-to-day activities, preventing and controlling diseases. Bulk drugs manufacturing sector in India is well established and has recorded a steady growth in the overall Indian industrial scenario. The bulk drugs and allied industries have been amongst the fastest growing segments of the Indian industry. India's pharmaceutical industry is the third largest in the world in terms of volume. Its rank is 14th in terms of value. India is also one of the top five active pharmaceutical ingredients (API) producers (with a share of about 6.5%). The ever-increasing demand for Bulk Drugs and Intermediated and Neutraceuticals in India and abroad as well as changing market conditions for manufacture and sale of products has prompted the promoters to go for manufacturing of Bulk Drugs and Intermediates as well as Chemicals. 1.2. Employment Generation Potential The activities under proposed expansion would produce improvement in the socio-economic status of people in the study area in terms of local labor employment and contract basis jobs. The proposed activity might provide employment opportunities to the local populace, especially in business and other services like transportation activity 1

2.0 PROJECT DESCRIPTION 2.1. Location The proposed expansion shall be executed in existing set-up located at plot no. B 14 of Chincholi MIDC, Tal.: Mohol, Dist.: Solapur, Maharashtra.The MIDC area is located in a rural region and is about 15 km from Solapur. The MIDC is fast growing area and has adequate access roads. The National Highway 9 (NH-9) passes from the Solapur, due to which the procurement as well as dispatch of raw materials and finished products to nearby cities and market places would be very much economical and convenient. 2.2. Site selection The site selection of existing project site at the above-mentioned location was done in light of following considerations - Availability of all basic facilities like water, power, man power, etc. and other allied facilities from MIDC. The nearest city Solapur is 15 km away from the project site which is very well connected with other parts of the country by road and rail. Good communication facilities are available No rehabilitation and resettlement shall be required. 2.3. Alternative Site The proposed expansion would be carried out in existing setup; hence no any alternative sites were examined. 2.4. The Products The different products presently being manufactured and those considered for manufacture under expansion programme & their maximum production quantities are as under- Product Table 2 List of Products Existing Products Capacity MT / Day Proposed Products Capacity MT / Month Total MT/Month 1. Folic Acid -- 40 40 2. Domperidone -- 10 10 3. CADS 18 -- 18 4. Lasamide 15 -- 15 Total 33 50 83 2.5. Investment The total investment of existing and expansion project is Rs. 37.5 Crores. This includes existing investment of Rs.12.50 crores & expansion investment of Rs.25.00 crores. Under expansion project a new boiler of 15 TPH shall be installed and existing ETP scheme which included TEE shall be scraped and new scheme including MEE followed by Agitated Type Thin Film Dryer (ATFD) and RO unit shall be installed. 2

2.6. Size / Magnitude of Operation Sri Krishna Pharmaceuticals Ltd is being involved in manufacturing of CADS and Lasamide to the tune of 33 MT/ Month under is its existing manufacturing setup. Moreover, under expansion activity additionally two new products viz. Folic acid and Dompreidone to the tune of 50 MT/ month shall be manufactured. The proposed expansion would be carried out in existing setup. 2.7. Process Details The manufacturing of bulk drugs and intermediates comprises of a number of operations and processes involving various reactions of basic raw materials. Eventually, the desired products are formed which are refined and separated. Refer Annexure I for detailed manufacturing process and mass balance. 2.8. Resource Optimization / Recycling And Reuse In existing manufacturing setup a state-of-art machinery has been installed which is economical on energy consumption as well as routine O & M grounds. Taking into consideration the same scenario of economy and energy conservation the machinery under expansion activity shall be installed. Further, the entire effluent treatment and disposal shall result into ZERO Discharge process as per the CREP norms. The existing effluent treatment scheme which included primary treatment followed by evaporation in TEE shall be totally scraped. The effluent from existing and proposed activity shall be segregated in two streams. Stream I shall be neutralized and then forwarded to MEE followed by Agitated Thin Film Dryer (ATFD). Stream-II shall be given a biological treatment followed by R.O treatment. The R.O permeate would be used for cooling tower and the R.O reject shall be forwarded to MEE thereby achieving ZERO DISCHARGE and reducing the fresh water demand by recycling the RO permeate. 2.9. Input Requirements & Infrastructure Facilities Including Power Sources Water The water required for the proposed existing and expansion activity shall be taken form MIDC water supply scheme. Following table gives the details of water required for existing and expansion activities. Table 3 Water Requirement Description Existing Expansion M 3 /day M 3 /day Total Domestic # 20 # 15 # 35 Industrial a. Process / Washing # 50 # 308 # 358 b. Cooling # 70 240 (*212 + # 28) 310 (*212 + # 98) c. Boiler feed # 60 # 75 # 135 d. Laboratory -- # 1 # 1 e. Gardening # 20 -- # 20 Industrial Use # 200 624 824 (a+b+c+d+e) Grand Total (*212 + # 412 ) # 220 639 (*212+ # 427) Note : * Quantity of water recycled from RO # Fresh water quantity taken from MIDC water supply scheme (*212 + # 612 ) 859 (*212+ # 647) 3

Fuel In the proposed expansion, Coal shall be the fuel used for boiler. Moreover, under existing activity coal and diesel is used as fuel for boiler and DG Set respectively. Table 4 Fuel Consumption Description Fuel Quantity 1. Boiler (Existing - 3TPH and Expansion Coal Existing - 300 MT/M Expasnion - 2700 MT /M - 15 TPH) 2. D.G. Set (Existing - 365 KVA) Diesel 90 Lit/hr Manpower Under, existing activity 70 nos. of skilled and unskilled workers are appointed, whereas under expansion project 300 nos. of more workers will be appointed. While selecting manpower preference will be given to persons from local area thereby creating better employment opportunity 2.4 Environmental Aspects under the Project A) The Effluents i) Domestic Effluent- Domestic effluent to be generated from proposed expansion activities would be 10 M 3 /Day and same shall be treated in proposed STP. Also, domestic effluent from existing activities to the tune of 18 M 3 /Day is forwarded to septic tank after expansion same will be taken to STP. Treated water shall be used for gardening / toilet flushing. i) Industrial Effluent- The existing effluent treatment scheme which included primary treatment followed by evaporation in TEE shall be totally scraped. Moreover, the effluent generated from the existing and proposed expansion activities would be segregated in two different Streams viz. Stream I and Stream II. Further, the effluent from above streams would be treated in Effluent Treatment Plant comprising MEE, ATFD and RO system. The details w.r.t effluents and its treatment under Stream I and Stream II are as follows: Stream I Comprises of Process effluent to the tune of 332 M 3 /day. The same shall be neutralized and then forwarded to MEE followed by ATFD. Stream II Comprises of effluent to the tune of 39.95 M 3 /day. The same shall be given a biological treatment and then subjected to R.O treatment. Thereby achieving ZERO DISCHARGE. The details of wastewater generation under existing and proposed operations are as follows- 4

Table 5 Details of Effluent Generation Description Existing (M 3 /Day) Propose d (M 3 /Day) Total (M 3 /Day) 1. Domestic 18 10 28 2. Industrial Stream-I a. Processing 26.21 332 358.21 b. Lab & Washing Stream -II c. Cooling Blow Down (Process 25.21 +Washing 1) 4 24 43 d. Boiler Blow Down 15 e. R.O Reject 0.95 0.95 Industrial Total 30.21 371.95 402.16 B) The Emissions The existing plant consists of one boiler of 3 TPH and one D.G set of 365 KVA capacity. A Multicyclone Dust Collector (MDC) followed by stack height of 30 M has been provided as Air Pollution Control (APC) equipment to boiler. Under proposed expansion one new boiler of 15 TPH capacity shall be installed with bag filter as APC equipment. The existing 3 TPH boiler will be operated as standby for 15 TPH boiler. Moreover, apart from the scrubbers installed under existing unit additional scrubbers shall also be provided under expansion activity. Table 6 Details Of Stack Under Existing And Expasnion Activity Description Details Existing Expansion 1. Capacity 3 TPH 15 TPH 2. Fuel type Imported coal Imported coal 3. Fuel Quantity 300 MT/M 2700 MT / M 4. Calorific value 5000 5. Ash content 10% 6. Sulphur content 0.5 % 7. Material of construction MS MS 8. Shape (round/rectangular) Round Round 9. Height, m (above ground level) 30 M 30 M 10. Diameter/size, in meters 0.6 M 0.6 M 17 Control Equipment preceding the stack Multi Cyclone Dust collector Bag filters C) Fugitive Emissions Fugitive emissions are generated during loading / unloading of raw material/products, leakages in pumps, process emissions. The same is being taken care by installation of fume extraction system in loading / unloading section, scrubbers in production blocks and mechanical seals to pumps. This same practice shall be followed under proposed expansion. 5

Table 7 Details of Scrubbers under existing unit Process Emissions Diameter of Scrubber (M) Height of Scrubber (M) Packing Material used in Scrubber Scrubbing Media used in Scrubber Disposal of Scrubbed material Efficiency 1. Ammonia 2.225 1.8 Random packing by 2. HCL 1) 3.0 1) 4.5 using 2) 2.0 2) 4.3 Rashing 3) 2.0 ring Water Re-used in process. 3) 4.3 Water Sale 100 % Expansion scrubber details: D) Noise Pollution Aspect There are no major noise generating sources in the project other than the existing boiler and D.G. Set etc. The same are kept in isolated areas. Further, proper acoustic treatments, wherever required, are also provided to have the ambient noise levels as per CPCB standards. The workers are provided with earmuffs and other Personal Protective Equipments (PPE) which would give the reduction of 30 db (A). The D.G. set is not a continuous source of noise as it would be operated only during power failure. As per the Noise Pollution Regulation and Control Amendment Rules; 2010, the DG sets are properly and adequately enclosed in a canopy. Same abatement measure shall be taken to control the noise pollution after installation of the proposed boiler. E) Hazardous Waste and Solid Wastes The wastes generated from the proposed expansion activities are categorized as Hazardous and Non-Hazardous Wastes. The entire quantity of hazardous waste is handled and disposed as per Hazardous Waste (Management, Handling and Transboundary Movement) Rules 2010.The hazardous waste generated under existing and expansion activity is given in following table. Table 8 Hazardous Waste Generation Disposal Type of Waste Existing Expansion 1. 28.1 Spent Acid 28.18 -- Sale to KL/Day 2. 28.2 Spent Carbon 71 Kg/Day 3. 34.3 Chemical Sludge from ETP 1000 Kg/Day 4. 34.3 Solids from MEE 1560 Kg /Day Authorized Party 25.5 Kg/Day CHWTSDF / Sale to cement Industry 500 Kg/Day CHWTSDF 25 MT/Day CHWTSDF In existing setup, isolated area for the storage of hazardous waste having leachate collection system, impervious floor and roof cover has been provided to take care of waste generated under expansion activities. The hazardous waste from expansion shall also be stored in 6

existing facility. Membership of CHWTSDF has already been procured for disposal of hazardous waste. Onsite records of waste forwarded to CHWTSDF have been maintained. Details of solid waste generated under existing & expansion project is given in following table Table 9 List of Solid Waste Generation 1. Type of Waste Existing Proposed Boiler Ash 65 MT/Day 270 MT/Day Disposal Sale to brick Manufacturers 3.0 SITE ANALYSIS 3.1. Connectivity: The site is located at a rural surrounding. The nearest railway station is Solapur, located at about 15 Km and nearest airport is Solapur, located at about 20 Km. 3.2. Land Form, Land Use and Ownership: The existing unit is located in notified Indusial area. The entire premises i.e. plot B-14 is owned by SKPL. No prime agricultural land was sacrificed during establishment of existing unit 3.3. Topography The plot is located in MIDC Chincholi and slope of the plot is from North to Southwest. The terrain of Solapur is basically flat and undulating where the low table land and small hills of Karmala and Madha Talukas act as a watershed between Sina and Bhima rivers. 3.4. Existing Land Use Pattern: Land use within the 10km radius buffer is crop land covers about 15.34% area, scrubs land covers about 1.19 %, water bodies occupies about 0.27%, fallow land cover about 40.10% area of the total area. The existing project is located in MIDC Chincholi. There would be no any requirement for clearing of vegetation or buildings for proposed expansion. There would be no any change in Land Use, Land Cover or Topography of plot. 3.5. Existing Infrastructure: A plot measuring 31895.5 Sq.M. was acquired by SKPL in Chincholi MIDC. Therein, the entire manufacturing setups for production of Bulk drug and intermediates have been setup. Moreover, the proposed expansion shall be done I n the existing premises. 3.6. Soil Classification: The soil in the district is black, coarse grey and reddish soils. The river basin of Sina has deep and good quality soil along the banks. The soil near hilly areas is laterite mixed with stone. 3.7. Climate: 7

The climate in Solapur district is extreme with large variations in the temperature. During summer the district experiences extreme heat while in the winter there is sudden temperature fall. The average rainfall in the district is 585 mm. 3.8. Social Infrastructure Available: The area is well served with infrastructural facilities such as road, rail, power station, and telecommunications. 4.0 PLANNING BRIEF 4.1. Planning Concept: The proposed expansion production would be undertaken in existing manufacturing set-up.. 4.2. Population Projection: According to Census 2001, the area covered under 10 km radius has total population of 36996 comprising of 19312 males and 17864 females. 5.0 PROPOSED INFRASTRUCTURE 5.1. Industrial Area: Table 10 Area Break up No Existing Area Sq. M. Expansion Area Sq. M. Existing + Expansion Area Sq. M. Built up 2,182 5,000 7182 Open space 17,720 12,720 12720 (17720-5000) Green belt 11,992 Sq. M. (38% of the total plot area ) Total plot area 31,895.5 Sq. M. 5.2. Greenbelt & Rain water Harvesting: SKPL has reserved an area of 11992 Sq. M. (38% of the total plot area ) for green belt development. Thereunder 1000 Nos. of tress have been planted under existing green belt. Moreover, 200 Nos. of trees shall be planted under proposed expansion. 5.3. Social Infrastructure: MIDC has developed internal roads, as well as it has provided good connectivity facilities. Amenities like education, medical, water supply, communication, road network, electricity etc. are available in the project area. 5.4. Connectivity: The existing project site is well connected by roads, rail and airport facilities. The National Highway 9 (NH 9) is 2.34 Km, and the Solapur railway station and airport is about 15 Km and 20 Km respectively from the project site. 8

5.5. Drinking Water Management: Total water required for domestic purpose under existing as well as proposed activities is 35 M 3 /Day. The same is taken from MIDC scheme. 5.6. Sewerage System: The domestic effluent from existing activity is being treated in Septic tank. After expansion the existing and proposed effluent shall be treated in proposed STP. 5.7. Industrial Waste Management: Industrial Effluent: Installation of Multiple Effect Evaporation System followed by ATFD as well as RO system under proposed expansion activity would result in ZERO DISCHARGE of effluent. Emissions - The unit proposes to install Bag Filter as an Air Pollution Control Equipment for the boiler under expansion activity. Hazardous Waste - The quantity of hazardous waste generated would be forwarded to CHWTSDF and authorized re-processor. Solid Waste - Solid waste generated would be sold to brick manufacturer for secondary use. 5.8. Power Requirement & Supply / Source: Power Supply required for the existing unit is presently taken from MSEB Grid. In case of a power failure, DG set would be used to provide uninterrupted power supply to emergency facilities. The electricity requirement under existing unit is 500 KVA where as under proposed expansion it shall be to the tune of 1000 KVA. 6.0 REHABILITATION & RESETTLEMENT (R& R) PLAN 6.1. Policy to Be Adopted: As the project site is located in approved industrial area developed by MIDC, there are no rehabilitation & resettlement issues involved. 7.0 PROJECT SCHEDULE & COST ESTIMATES 7.1. Date of Start: After grant of environmental clearance and procurement of consent to operate the proposed expansion production would be commenced. 7.2 Estimated Project Cost: The total investment of existing and expansion project is Rs. 37.5 Crores. This includes Existing investment of Rs.12.50 crores & Expansion investment of Rs.25.00 crores 8.0 ANALYSIS OF PROPOSAL 9

The proposed expansion would be undertaken in the existing premises which is supported by allied infrastructure, water and electricity. Water use will be minimized to improve the process. Installation of Multiple Effect Evaporation System followed by ATFD as well as RO system under proposed expansion activity would result in ZERO DISCHARGE of effluent as per the CREP Norms. RO permeate is recycled for cooling tower makeup thereby reducing fresh water requirement. For minimization/prevention of the fugitive emission, regular maintenance of valves, pumps and other equipments is done to prevent leakage & entire process is carried out in the closed vessel as well as provided adequate scrubbing system for efficient absorption of process gas. Adequate arrangement for handling and disposal of Hazardous solid waste is made. Provision of fire fighting system and fire hydrant system has been done on site. Direct and indirect employment opportunities are extended to the nearby resident. The proposal does not require any rehabilitation or settlement plan. There would be no major increase in pollution load after expansion. 10