Investor Manual For Energy Efficiency Ins Me 9 May 2006

Disclaimer Information contained in this manual has been obtained by the Confederation of Indian Industry (CII) from sources
believed to be reliable. However, neither IREDA nor CII guarantee the accuracy or completeness of any information published herein and neither IREDA nor CII shall be responsible for any errors and omissions. IREDA and CII are also not responsible for any damages arising out of use of this information. This manual is published with the understanding that IREDA and CII are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional organization should be sought.
Introduction
SMALL AND MEDIUM ENTERPRISES (SMEs) IN INDIA

With the advent of planned economy from 1951 and the subsequent industrial policy followed by Government of India, both planners and Government earmarked a special role for small and medium scale industries in the Indian economy. Due protection was accorded to both sectors, and particularly for small- scale industries from 1951 to 1991, till the nation adopted a policy of liberalization and globalization. Certain products were reserved for small-scale units for a long time, though this list of products is decreasing due to change in industrial policies and climate. SMEs always represented the model of socio-economic policies of Government of India which emphasized judicious use of foreign exchange for import of capital goods and inputs; labour intensive mode of production; employment generation; nonconcentration of diffusion of economic power in the hands of few (as in the case of big houses); discouraging monopolistic practices of production and marketing; and finally effective contribution to foreign exchange earning of the nation with low import-intensive operations. While the SMEs offered several advantages for the policy makers, they had been facing a few limitations. Some of these limitations are: ! ! ! ! ! ! Low Capital base Concentration of functions in one / two persons Inadequate exposure to international environment Inability to face impact of WTO regime Inadequate contribution towards R & D Lack of professionalism
In spite of the limitations, the growth in SME has been very significant. Comparing the growth of Small & Medium Enterprises over a period of 10 years (1994-2003), the following are some of the significant improvement areas: 1. The number of SME units has seen a significant rise. It has grown by over 40% in these 10 years 2. The production from the SMEs has seen a significant rise. The increase in production has been from Rs. 298,886 Crores in 1994-95 to Rs.763,013 Crores in the year 2002-03, an increase by over 150%. 3. The employment generation in SMEs had also been in a significant upward trend. In these 10 years, the employment generation has also grown by about 40%. 4. Exports from SMEs have increased by nearly 3 times in 2003 compared to the exports in 1994. Energy Conservation in Small & Medium Enterprises The number of SMEs has been on an increasing trend. SMEs today are looking at cost competitiveness for sustaining in the local and international markets. One of the excellent tools in achieving cost competitiveness has been energy conservation.
Confederation of Indian Industry

CII-Sohrabji Godrej Green Business Centre
According to estimates, the total energy consumed in the SMEs is in the order of about 8000 MW. The various sectors highlighted in this report offer an annual energy saving potential of about 1000 MW which is equivalent to Rs. 28000 Million. This, in turn, creates an investment opportunity of Rs 42000 million, to achieve the projected energy savings. This indicates tremendous potential for energy conservation in the SME sector. Objective of this Manual: The objective of this Investors Manual for Energy Efficiency in Small & Medium Enterprises for the use of Bankers is a step in highlighting & bringing in investment opportunities for energy efficiency equipment. This manual covers various topics like energy saving potential for various industries, technologies available to improve energy efficiency, equipment suppliers, government policies / incentives available for the sector, terms of IREDA and other financial institutions extending support to such projects etc. The end objective of the activity is market development for energy efficiency / conservation products & services for SMEs.
Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Executive Summary
Introduction
Small & Medium Enterprises (SMEs) in India are playing a very major role in the overall development of the countrys economy. SMEs constitute one of the vibrant sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base it helps to create and its share in industrial production and exports. These SMEs in India met the expectations of the Government in this respect. SMEs have developed progressively and have achieved several of its objectives: ! ! ! ! ! ! ! ! High contribution to domestic production Significant export earnings Operational flexibility Capacities to develop appropriate indigenous technology Import substitution Contribution towards defense production Technology oriented industries Competitiveness in domestic and export markets
SMEs are of vital importance to bankers & policy makers: For The Banking System SME Represents ! A Large & Growing Opportunity ! Emerging Markets Banking Revenue Estimated At Over $40Billion For Policy Makers, it shines as a very effective means to achieve ! High Employment " Employs Over 50% Of Labour Force Even In The Developed World ! High Economic Growth " 50-60% Share of GDP Engine Of Economic Growth ! Culture Of Entrepreneurship ! Wider Tax Base ! Alleviation Of Poverty DEFINING SME The definition of a Small & Medium Enterprise various widely Small Industries Development Bank of India (SIDBI), a nodal agency for small industries defines Medium sector enterprises as units having investment in plant and machinery upto Rs.10 crore. However, discussions with banks such as State Bank of India (SBI) indicate that, companies having turnover of less than 25 crores per annum can be considered as SME.
Executive Summary
IMPORTANCE OF SMES The potential of SME to generate employment has remained the strongest argument in their favour. The sector now employs 17 million people and is the second largest employer of India's workforce after agriculture. The role of SME in the economy can be seen from the fact that it now accounts for 95% of all industrial units in the country and 40% of total output. About Investors Manual Under the `India: Second Renewable Energy Project, Indian Renewable Energy Development Agency (IREDA) is operating a World Bank Line of credit (WBLOC) to finance projects in energy efficiency/ conservation sector. As a part of the above project, Technical assistance Plan (TAP) is envisaged for (i) institutional development and technical support to IREDA,(ii) improving the marketing of the energy efficiency and demand-side management investments (iii) Promoting private sector participation in end-use efficiency. As a part of the project, CII Godrej GBC has been assigned the task of Preparation of Investors Manual for Energy Effici ncy/ Conservation in Small and Medium e Scale Sector for the use of Bankers Objective of this Manual: The objective is to prepare an Investors Manual covering the topics like energy saving potential for various industries, technologies available to improve energy efficiency, equipment suppliers, government policies / incentives available for the sector, terms of IREDA and other financial institutions extending support to such projects etc. The end objective of the activity is market development for energy efficiency / conservation products & services. The whole effort is to prepare a simplified and user-friendly manual for the use of bankers, based on inputs from various stakeholders in energy efficiency sector. CII Godrej GBC adopted the following methodology in preparing this manual: 1. Classifying the SME sector/equipment under energy intensive category 2. Identifying different energy intensive SME sectors which are likely to invest in EE technologies 3. Identify available technologies and relate each of them to SME sector application. 4. Identifying energy saving potential for each of the energy intensive industry and list the major energy saving measures, which could be undertaken in each of the industry/equipment 5. Develop model financial structures for energy efficiency investments and its payback 6. A brief technical detail including schematics and cost benefit analysis for each of the proposed energy saving measures.
7. Providing the list of equipment suppliers (both Indian as well as international), EPC contractors, Energy service companies etc. who can take up this energy saving measures 8. Giving the list of consultants / energy auditors etc, who can be approached for conducting energy audit, preparation of DPR etc. 9. A brief detail of government policy / incentives / concessions available etc. for identified energy saving projects / equipments. 10. Giving a brief detail of finance available for taking up energy efficiency projects from IREDA as well as from other financial institutions All the projects are all proven projects, which have been implemented successfully in Indian industry. The objective of highlighting these projects is to facilitate the potential investors & bankers, in having a quick reference of the various energy saving measures and also enable them make decisions on investment. Summary of this report This report focuses on energy conservation methodologies & case studies in 10 major sectors and 8 commonly used equipment in the Indian Small & Medium Enterprises (SMEs) Sectors covered under this manual 1. 2. 3. 4. 5. Leather Cement Pharmaceutical Ceramics Tea 6. Food processing 7. Paper 8. Textile 9. Sugar 10. Foundry
Major equipment covered under this manual 1. 2. 3. 4. Air compressors Centrifugal pumps Centrifugal fans Boilers & steam system 5. Refrigeration & air conditioning system 6. Electrical distribution 7. Electrical motors 8. Lighting
According to estimates, the total energy consumed in the SMEs is in the order of about 8000 MW. The various sectors highlighted in this report offer an annual energy saving potential of about 1000 MW which is equivalent to Rs. 28000 Million This, in turn, creates an investment opportunity of Rs 42000 million, to achieve the projected energy savings. This report will serve the objective of its preparation, in promoting / development of market for energy efficient equipment & suppliers in Indian industry.
Energy Saving Opportunities in Various Sectors
Leather
Energy Conservation in Leather Industry
Introduction
Leather Industry in India, occupies a place of prominence in the Indian economy, in view of its massive potential for employment, growth and exports. A large part (nearly 60-65%) of the production is from Small & Cottage Sector. The annual export value of Leather industry is poised to touch about 2 billion US dollars. Leather industry is amongst top 8 export earners for India. A estimated 15% of total purchase of leading global brands in footwear, garments, leather goods & accessories in Europe, is outsourced from India. India, being the second largest manufacturer of leather garments & footwear, predominantly, all companies are ISO Certified leather companies and meet international standard criteria. Leather industry has a large scope to grow in near future. Leather industry today is highly competitive and the industry has taken a major stride in Energy Efficiency to sustain their cost competitiveness. Several Phase shift projects have been implemented and some of the actual implemented case studies presented envisage significant energy saving opportunities in this sector

Case Study No. 1
Install Variable Frequency Drive for Aqua- Hot & AquaCold Pumps
Background
Pumps are common equipment in Leather Industry. The load on a pump may either be constant or variable. The variation in the load may be due to various factors like process variations, changes in capacity or utilization etc. Conventionally, the output of the pump is adjusted according to the process requirements using one of the following methods namely by pass / recirculation or valve throttling. Variable speed drives are devices used for varying the speed of the driven equipment (like pump) to exactly match the process requirement.
Previous Status
The dyeing and tanning drums at leather preparation section require hot and cold water intermittently for mixing of the dye/tannin. The hot-cold water mix ratio is determined by the quantity and quality of the rawhides, besides the colour of the dye used. Maintaining the exact parameters is critical, for the effective penetration of dyes. To achieve this optimum temperature, leather industries utilize a fully automised "aquamix unit". The aquamix units, receive hot and cold water from two separate pumps. The hot-cold mix is then to the individual drums. The requirement and hence the flow rate of the hot and cold water varies with the temperature and the number of user points in operation. The flow was regulated by recirculation. Hot water and cold water requirement in all the tanks is not continuous and simultaneous. So once the set requirement was achieved, the hot water/ cold water was recirculated, without going to the process. The Hot and cold water pump therefore was in continuous operation at its full capacity, irrespective of the number of users in operation.
Energy Saving Project

A Variable Frequency Drive (VFD) was installed for the Hot water and Cold water supply pumps.
Implementation Methodology
VFD was operated in closed loop with a pressure sensor on the pump discharge header. The pressure sensor senses the process requirement and the pressure signal is given as the input to the VFD. The VFD varies the speed of the (RPM) pump so that only that quantity of the fluid demanded by the process is pumped.
Installation of VFDs for the Hot and cold water supply pumps was done during the regular operation of the plant itself. The recirculation valve was closed completely. The plant team did not face any problems during the implementation of the project. Benefits The implementation of this project resulted in saving of energy consumption of the pump and also better control of the system. Financial Analysis The installation of VFD for the pump resulted in an annual saving Rs.0.23 Million. The investment of Rs.0.30 Million was paid back in 18 months. Replication potential Installation of variable speed drives for pumps can be replicated in all applications where a pump is supplying to variable demand, which is the normal case in many Leather industries.
Cost benefit analysis

Annual Savings Rs. 0.23 millions Investment Rs. 0.30 millions Simple payback 18 months
Leather Proposal-1: Installation of Variable Frequency Drive for Aqua-hot & Aqua-cold pumps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.300 -0.300 0.627 61.36% 0.300 0.240 0.230 -0.004 0.209 0.060 0.230 0.061 0.135 0.000 0.230 0.083 0.105 0.000 0.230 0.083 0.094 0.000 0.230 0.083 0.084 0.000 0.230 0.083 0.075 0.000 0.230 0.083 0.067 0.000 0.230 0.083 0.060 0.000 0.230 0.083 0.053 0.000 0.230 0.083 0.147 0.047 0.230 0.230 0.230 0.230 0.230 0.230 0.230 0.230 0.230 0.230 0.23 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.234 0.169 0.147 0.147 0.147 0.147 0.147 0.147 0.147

Case Study No. 2
Install Variable Frequency Drives (VFD) for CP - Cold and CP - Hot Water Supply Pumps
Background
Pumps are common equipment in Leather Industry. The load on a pump may either be constant or variable. The variation in the load may be due to various factors like process variations, changes in capacity or utilization etc. Conventionally, the output of the pump is adjusted according to the process requirements using one of the following methods namely by pass / recirculation or valve throttling. Variable speed drives are devices used for varying the speed of the driven equipment (like pump) to exactly match the process requirement.
Background
There are 24 numbers of dyeing/tanning drums in phase - I. These drums require hot (70C temperature) and cold water (ambient temperature) for effective mixing & application of chemicals, dye and tannin. The hot and cold water requirements for these drums are met by two separate pumps. The number of drums in operation varies between 8 and 20, depending upon the load and season. On an average, only 15 out of the 24 drums will be in operation at the same time, even during the peak season. This indicates that, the water requirement is not continuous. However, since the number of drums in operation at any point of time is not constant, both these pumps are in continuous operation. This results in continuous recirculation of water (quantity varies), back to the storage tanks, whenever the number of drums in operation varies. The operation of a pump with recirculation control is an energy inefficient practise. Also, both the pumps were observed to be operating with discharge valve throttling which is energy inefficient method of controlling the excess capacity of the pumps.

A Variable Frequency Drive (VFD) was installed for CP - Cold and CP - Hot water supply pumps.
VFD was operated in closed loop with a pressure sensor on the pump discharge header. The pressure sensor senses the process requirement and the pressure signal is given as the input to the VFD. The VFD varies the speed of the (RPM) pump so that only that quantity of the fluid demanded by the process is pumped.
Installation of VFDs for the CP Cold & CP Hot water supply pumps was done during the regular operation of the plant itself. The recirculation valve was closed completely. The plant team did not face any problems during the implementation of the project.
Benefits
The implementation of this project resulted in saving of energy consumption of the pump and also better control of the system.
Financial Analysis
The installation of VFD for the pump resulted in an annual saving Rs.0.11 Million. The investment of Rs.0.12 Million was paid back in 13 months.
Replication potential
Installation of variable speed drives for pumps can be replicated in all applications where a pump is supplying to variable demand, which is the normal case in many Leather industries.

Leather Proposal-2: Installation of Variable Frequency Drive for CP-cold & CP-hot water supply pumps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.120 -0.120 0.316 72.32% 0.120 0.096 0.110 0.005 0.094 0.024 0.110 0.031 0.063 0.000 0.110 0.039 0.050 0.000 0.110 0.039 0.045 0.000 0.110 0.039 0.040 0.000 0.110 0.039 0.036 0.000 0.110 0.039 0.032 0.000 0.110 0.039 0.028 0.000 0.110 0.039 0.025 0.000 0.110 0.039 0.071 0.023 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.11 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.105 0.079 0.071 0.071 0.071 0.071 0.071 0.071 0.071

Case Study No. 3
Reduce Rpm of the Auto Spray Machine Exhaust Blowers 1, 2 And 3 By 20%
A fan is typically a mechanical device that causes a movement of air, vapour & other gases in a given system. In Polishing sections, the aerosol mix, which are produced during the process, are forcefully sucked and let out into the atmosphere using exhaust fans. This is a typical application where the volume of air to be handled becomes the only criterion for the selection of fan. The exhaust air quantity is controlled based on the requirement to prevent excess suction at the machine. Typically, the control of the Exhaust fan is through the damper. The control of a centrifugal fan by damper is an energy inefficient method as part of the energy supplied to the fan is lost across the damper. The latest energy efficient method is to vary the speed of the fan to meet the varying requirements. Many plants have adopted this control and achieved substantial benefits. In Leather Industry, the exhaust fans offer a good scope for saving energy. The details are as below.
Background
There are 7 auto spray machines, which are used to provide a better finish to the leather. Chemicals are sprayed in an aerosol form, on to the leather surface. The exhaust blowers provided on each of these machines, remove the unabsorbed aerosol mix. The exhaust blowers 1, 2 and 3 are operating with suction damper control (50 - 60 % closed position). The operation of blowers with damper control is an energy inefficient method of capacity control. One of the better methods of optimizing the excess capacity of blowers and reducing the power consumption is by RPM reduction.

The Speed of the Exhaust blowers 1, 2 & 3 are reduced by 20% by changing accordingly.
Implementation Strategy
The speed of the blowers was reduced during the stoppage of the plant for maintenance. The plant personnel were well trained in operation and therefore no problems were faced with implementation. The dampers were kept fully opened after the speed was installed.
Financial Analysis
The annual energy savings achieved was Rs. 0.27 Million and the investment was Rs. 0.03 million for installing 3 nos of pulleys, which got paid back in 2 Months.

Leather Proposal-3: Reduce RPM of the Auto spray machine exhaust blower 1, 2 and 3 by 20% Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.958 602.62% 0.030 0.024 0.270 0.088 0.162 0.006 0.270 0.095 0.140 0.000 0.270 0.097 0.123 0.000 0.270 0.097 0.110 0.000 0.270 0.097 0.098 0.000 0.270 0.097 0.088 0.000 0.270 0.097 0.078 0.000 0.270 0.097 0.070 0.000 0.270 0.097 0.062 0.000 0.270 0.097 0.056 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.27 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.182 0.175 0.173 0.173 0.173 0.173 0.173 0.173 0.173 0.173

Case Study No. 4
Replace Electrical Heating with Steam Heating in Identified Areas

Background
Electric heaters are common in leather industry. Heaters are utilized in various applications like dryer, Press, heaters etc. The cost of electric heating would be typically 2 to 3 times higher than the cost of thermal or steam heating. This offers good potential to replace all electric heaters to steam heaters which would result in tremendous cost saving potential.
Previous Status
In a Leather Industry, electrical heating is utilized in the following areas where the temperature required varies from 60 - 90oC. Area Finned type heaters NTU conveyor dryer Finiflex machine Roto press Total Power Measured Power (kW) 21 25 28 24 98
The cost comparison between electrical heating and thermal heating in that industry is as follows:
! !
Cost of electrical heating (@Rs. 3.38/kWh) Cost of steam heating (Fuel being wood @ Rs.850/MT)
= =
Rs. 3930/ MM Kcal Rs. 623/ MM Kcal
The cost comparison indicates that electrical energy is about 4 times more expensive than thermal heating system.

The existing electrical heaters were replaced with steam heaters in identified areas and the plant had achieved tremendous cost benefits.
Implementation Strategy
The electrical heaters were replaced with steam heaters (steam being utilized from existing wood fired boiler) during the stoppage of the plant for maintenance. The plant personnel were well trained in operation and therefore no problems were faced with implementation. The existing electrical are kept as standby.
Financial Analysis
The annual energy savings achieved was Rs. 0.69 Million and the investment was Rs. 0.20 million for installing steam heaters, which got paid back in 4 Months.

Leather Proposal-4: Replace Electrical Heating with Steam Heating in Identified Areas Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 2.363 243.05% 0.200 0.160 0.690 0.190 0.446 0.040 0.690 0.233 0.364 0.000 0.690 0.248 0.315 0.000 0.690 0.248 0.281 0.000 0.690 0.248 0.251 0.000 0.690 0.248 0.224 0.000 0.690 0.248 0.200 0.000 0.690 0.248 0.179 0.000 0.690 0.248 0.160 0.000 0.690 0.248 0.442 0.142 0.690 0.690 0.690 0.690 0.690 0.690 0.690 0.690 0.690 0.690 0.69 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.500 0.457 0.442 0.442 0.442 0.442 0.442 0.442 0.442

Case Study No. 5
Reduce Operating Pressure in Auto Spray Section Air Compressor

Background
In compressors the power consumption is directly proportional to the operating pressure. The power consumption increases with increase in operating pressure and vice versa. There is a good potential to save energy by dedicating compressors for the individual users, which need compressed air at a lower pressure. This eliminates the pressure loss due to distribution and hence energy loss.
Previous status
In an Leather Processing unit, the compressed air was generated at an operating pressure of 6.5 kg/cm2 (Average Pressure), by operating reciprocating compressors, having capacity of 150 Cfm. The pressure requirement in the Auto spray machine varies between 4 to 5 kg/cm2, which is achieved with pressure reducing valves (PRV's) installed close to the machine. In view of the requirement itself being 4-5 kg/cm2, the generating pressure in the compressor can be reduced. The air compressor is being operated between operating pressures of 6 kg/cm2 to 7 kg/cm2. The power drawn by any compressor being proportional to delivery pressure, lower setting of delivery pressure will result in substantial energy savings.
Energy saving project

The operating pressure of the air compressor was reduced from the previous operating pressure of 6.5 kg/cm2 to 5.0 kg/cm2.
Implementation
The pressure setting of the compressor was modified to match the process requirement. This change in setting was done immediately and the plant team did not face any problems during the implementation of the project.
Benefits
The reduction in pressure has resulted in substantial reduction in power consumption of the air compressor. About 20% reduction in power consumption was achieved.
Financial Analysis
Reducing the average operating pressure of the air compressor, resulted in an annual savings of Rs 0.15 Million. This doesnt require any major investment.

Annual Savings Rs. 0.15 millions
Leather Proposal-5: Reduce Operating Pressure in Auto Spray Section Air Compressor Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.958 602.62% 0.030 0.024 0.270 0.088 0.162 0.006 0.270 0.095 0.140 0.000 0.270 0.097 0.123 0.000 0.270 0.097 0.110 0.000 0.270 0.097 0.098 0.000 0.270 0.097 0.088 0.000 0.270 0.097 0.078 0.000 0.270 0.097 0.070 0.000 0.270 0.097 0.062 0.000 0.270 0.097 0.173 0.056 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.270 0.27 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.182 0.175 0.173 0.173 0.173 0.173 0.173 0.173 0.173

Case Study No. 6
Install Variable Frequency Drive (VFD) for the Screw Compressor in Dyeing Section
Background and concept
Variable speed drives eg. (Variable frequency drives) can be installed for all types of air compressors. However, they are best suited for screw air compressors. The advantages of installing VFD for screw air compressors are: All the compressors connected to a common system operate at a constant pressure. The operating pressure will be lesser than the average operating pressure of loading / unloading system. Hence, energy saving is achieved due to pressure reduction. The compressors need not operate in load / unload condition. This saves the unload power consumption. Air leakages in the compressed air system also comes down since the average operating pressure is less. Generally, high capacity air compressors are operated with loading /unloading control, as in the case of screw & reciprocating compressors and with inlet vane control for centrifugal compressors. In loading / unloading type of control receiver pressure is sensed and the compressor load / unload depending on the pressure. Hence a compressor operates within a band of pressure range. Generally air compressors operate with 1 kg/cm2 pressure range. By installing a VFD, it is possible to maintain a lesser bandwidth of say, 6 kg/cm2 to 6.1 kg/cm2. The major advantage of variable speed derive is that if 4 or 5 compressors are connected to a common header, then by installation of VFD in one compressor, the energy savings achieved due to pressure reduction is cumulative in nature (power consumption comes down in all compressors). Since the average operating pressure with VFD is less (6kg/cm2 instead of 6.5 kg/cm2 as per earlier example) the air leakages in the system is also minimized. The installation of VFD facilitates in varying the speed of the compressor depending on the requirement. This completely avoids unloading and saves unload power consumption, which is normally 25 to 35 % of the full load consumption. Recently, screw compressors with built-in variable frequency drives have been introduced in the Indian market. This system facilitates fine tuning of the compressor capacity precisely to meet the fluctuating compressed air demand. It accurately measures the system pressure and adjusts the speed to automatically maintain a constant pressure.
Previous status
In a dyeing section of Leather Industry, the opening / closing of dyeing drum is pneumatically actuated. A screw compressor supplies the air required for the pneumatic cylinder operation. The compressor is rated for air supply to all 24 dyeing drums. However, normally, only about 12-14 drums are in operation. The study on the loading of the compressor indicates that the compressor is loaded for only 25% of operating hours and during the rest 75% of time, the no-load power drawn is 9.3 kW.

Variable Frequency drive with feed back control was installed for the screw compressor, which was operating in the load unload mode. The pressure sensor provided in the main header sensed the operating pressure and gave the feed back signal to the variable frequency drive, which, in turn varied the speed of the compressor to meet the plant compressed air requirement.
Project Implementation
The installation of VFD for the compressor was done during the normal operation of the plant itself. The plant team did not face any problems in implementation of the project and in subsequent operating pressure reduction.
Benefits
The unloading power consumption of the screw compressor was totally eliminated. The over all operating pressure was also reduced to 5.5 kg/cm2.
Financial Analysis
The annual savings achieved amounted to Rs. 0.43 million. The required an investment of Rs. 0.7 million for installing variable frequency drive with feed back control, was paid back in 20 Months.


Leather Proposal-6: Install Variable Frequency Drive in Screw Compressor in Dyeing Section Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.700 -0.700 1.077 49.84% 0.700 0.560 0.140 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 -0.047 0.104 0.154 0.154 0.154 0.154 0.154 0.154 0.154 0.426 0.260 0.196 0.175 0.156 0.140 0.125 0.111 0.099 0.000 0.430 0.154 0.089 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.43 0.7 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.477 0.326 0.276 0.276 0.276 0.276 0.276 0.276 0.276 0.276
Case study No. 7
Install Variable Frequency Drive (VFD) for Hydraulic Oil System in Vacuum Drier
Background
In Leather Industry, hydraulic power packs are used for several applications like, extrusion machines, pressing machines, Vacuum Drier etc. In the hydraulic system actuation takes place for holding the job only for about 20 30% of the operating time. After the holding operation only the required operating pressure has to be maintained. During the rest of operating time the excess quantity of oil pumped by the hydraulic system is recirculated back to the tank. The recirculation takes place for about 70-80% of the operating time, through a three-way recirculation valve provided for this purpose. The % opening of the recirculation valve is governed by a continuous feed back signal, depending on the amount of oil required for the process. Recirculation results in excess power consumption in the hydraulic pump for pumping the excess quantity of oil.
Previous status
In a Leather Processing unit, the hydraulic power pack in the vacuum drier section is in continuous operation. These conventional hydraulic power pack circuits consist of double pumping system. It caters to the hydraulic needs of the clamping unit and a part thereof is taken to the oil cooling. The loading and utilization pattern was studied in detail. The observations are as follows: " The average idle time is nearly 80% out of a cycle time of 120 seconds. " During the idle time oil pumped is re-circulated back to the reservoir. " Due to the continuous recirculation mode, heat pick-up by hydraulic oil is also high. The power consumption in hydraulic Pump was measured to be 4.5 kW during the off-load condition. This condition prevails for more than 80% of time.

Variable Frequency Drives (VFDs) were installed for the oil pumps with feed back control using a pressure sensor provided at the discharge side of the pumps. The VFD was operated in closed loop with a pressure sensor on the pump discharge header. The pressure sensor senses the process requirement and the pressure signal is given as the input to the VFD. The VFD varies the speed of the (RPM) pump so that only that quantity of the fluid demanded by the process is pumped.

The advantage is of two fold: " Power saving in the pump " Good process control by a simple re-profit
Benefits
Installation of VFD for oil pumps in Hydraulic power pacs resulted in an annual saving of Rs. 0.3 million. This required an investment of Rs 0.35 million for variable frequency drives with feed back control, which got paid back in 15 Months.
The project can be replicated in all the units where oil pumps are installed for pumping oil in the hydraulic power packs.

Leather Proposal-7: Install Variable Frequency Drive For Hydraulic Oil System in Vacuum Drier Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.350 -0.350 0.847 68.00% 0.350 0.280 0.300 0.007 0.261 0.070 0.300 0.083 0.173 0.000 0.300 0.108 0.137 0.000 0.300 0.108 0.122 0.000 0.300 0.108 0.109 0.000 0.300 0.108 0.097 0.000 0.300 0.108 0.087 0.000 0.300 0.108 0.078 0.000 0.300 0.108 0.069 0.000 0.300 0.108 0.192 0.062 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.3 0.35 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.293 0.217 0.192 0.192 0.192 0.192 0.192 0.192 0.192
Cement
Energy Conservation in Cement Industry
Introduction
Cement plant are classified according to their Production Capacity, units with a capacity of upto 0.3 mn tpa are classified as mini cement plants and are eligible for concessional excise duty. Though the minimum economic size of a cement plant is 1 mn tpa, there are over 300 white and mini cement plants in India with a collective capacity of only 9 mn tpa (8 per cent of the total domestic installed capacity). The average cost of setting up a mini cement plant is about Rs 1400 per ton, while for a large cement plant it is about Rs 3500 per ton. The mini and small cement plants contribute less than 5% of overall production of cement in India and these productions units are primarily concentrated in Rajasthan, Madhya Pradesh, and Andhra Pradesh. Cement industry continues to globalize and become more competitive, in the process achieving targeted production levels while ensuring consistent product quality is critical to success. Maintaining a competitive edge depends on the highest achievable levels of operational efficiency and while keeping production cost as low as possible. Energy is the single largest operational cost for a cement plant. A plant's grinding processes is highly energy intensive product size reduction alone accounts for 70% of total energy consumed. In an increasingly competitive market, any reduction in energy consumption contributes to profitability. Optimization and control of grinding operations are key to reducing energy consumption in this sector resulting in reduced specific energy consumption. The actual implemented case studies in various cement units presented are similar both for small and large manufacturing units as the Equipments are similar in nature, except their capacities. .

Case study No. 1
Install High Efficiency Fan for Pre-Heater Fan

Present Status
The preheater fan in a 0.6 MTPA cement plant in south India was operating with about 11.6 units/ton of clinker. The pressure drop across the pre-heater is quite low at 400mm Wg and the volume handled by the pre-heater fan is 2.4 kg/kg of clinker, which is also within acceptable limits for this capacity. Hence, the major reason for the high energy consumption is the low efficiency of the fan. Observations indicate that the existing Preheater has an open radial impeller. The present trend is to install closed impellers, which have much higher operating (nearly as high as 80%) efficiencies. Hence there is a good potential to replace the existing fan with a high efficiency fan and reduce the energy consumption in the Preheater fan. Today, plants are operating Preheater fans with specific power consumption as low as 6.5 kWh / ton of clinker. Substantial potential for energy saving exists by replacing the existing Preheater fan with a new fan of higher operating efficiency.
Energy Saving Proposal

It was recommended to replace the existing fan with a high efficiency fan. This replacement was carried out with the plants expansion plan into account.
Benefits
The annual energy saving potential achieved by implementing this proposal is Rs.1.1 millions. The investment required was Rs. 2.0 millions, which paid back in 22 months. Cost benefit analysis Annual Savings Rs. 1.1millions Investment Rs. 2.00 millions 22 months
Simple payback
Cement Proposal-1: Install High Efficiency Fan for Pre-heater Fan Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 3.848 376.55% 0.200 0.160 1.100 0.337 0.763 0.681 0.040 1.100 0.380 0.720 0.574 0.000 1.100 0.395 0.502 0.000 1.100 0.395 0.448 0.000 1.100 0.395 0.400 0.000 1.100 0.395 0.357 0.000 1.100 0.395 0.319 0.000 1.100 0.395 0.285 0.000 1.100 0.395 0.254 0.000 1.100 0.395 0.227 1.100 1.100 1.100 1.100 1.100 1.100 1.100 1.100 1.100 1.100 1.1 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.705 0.705 0.705 0.705 0.705 0.705 0.705 0.705

Case study No. 2
Install GRR/Variable Fluid Coupling for ESP Fan

Present Status
The detailed study of the ESP fan at a cement plant of capacity 0.6 MTPA in south India reveals a good potential for energy saving. A part of the hot air coming out of the preheater fan is utilized in the Raw Mill and vented out through a separate ESP. The balance hot air is cooled in the GCT and vented through the new ESP with the help of the ESP fan. The observations on the existing system are as below. ! The ESP fan is operating with damper throttling. The damper is 65% open when the Raw Mill is in operation and 100% open when the Raw Mill is stopped. ! The Raw Mill operates for about 16-18 hrs/day ! During Raw Mill operation, there is a 45 mm Wg pressure drop across the damper, which is nearly 31% of the pressure rise of the fan. The operation of a centrifugal fan by damper throttling is energy inefficient as part of the energy supplied to the fan is lost across the damper. The energy efficient method is to install a variable speed arrangement, reduce the speed and operate at full damper opening. Variable speed drives have been extensively used in cement plants. The most commonly used variable speed drives are SPRS & GRR for large fans. However, today the latest trend is installation of HT Variable Frequency Drives for major fans in cement plants.

It was recommended to install a GRR/variable fluid coupling for the ESP fan and avoiding damper throttling. The GRR does not involve any physical change in the ESP fan and motor arrangement. The fluid coupling, however needs re-arrangement of the fan & motor for fixing the fluid coupling in between. Hence, the plant team installed a GRR for the ESP fan. After the installation of the GRR, the fan was controlled, by varying the speed and the damper was kept fully open.
Benefits
The annual saving potential realized was Rs. 0.34 millions. The investment required was Rs.0.50 millions, which paid back in 18 months. Cost benefit analysis
Cement Proposal-2: Install GRR / Variable Fluid Coupling for ESP Fan Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.500 -0.500 0.889 54.86% 0.500 0.400 0.340 -0.022 0.362 0.323 0.100 0.340 0.086 0.254 0.202 0.000 0.340 0.122 0.218 0.155 0.000 0.340 0.122 0.218 0.139 0.000 0.340 0.122 0.218 0.124 0.000 0.340 0.122 0.218 0.110 0.000 0.340 0.122 0.218 0.099 0.000 0.340 0.122 0.218 0.088 0.000 0.340 0.122 0.218 0.079 0.000 0.340 0.122 0.218 0.070 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.34 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 3
Replacement of the Air-lift with Bucket Elevator for Rawmeal Transport to the Silo
Background
The raw-meal after grinding in the raw mill is conveyed to the silo for storing and blending. The transport of raw-meal is conventionally done through pneumatic conveying systems such as air-lift. The pneumatic conveying system consumes more power, nearly 3 to 4 times that of the mechanical conveying system. Bucket Elevator for raw meal conveying also. The pneumatic conveying system puts in air to the silo, which has to be removed. Conventionally, the pneumatic conveying system was being preferred as the mechanical system (particularly the Bucket elevator) was not very reliable and the plant required operation continuously. In the recent years with the improvement in the metallurgy of the bucket elevators links and chains, bucket elevators that can operate continuously in a reliable manner have been developed. These also have been installed in many plants with substantial benefits.
Previous status
In a million tonne dry process pre-calciner plant, operating with a Vertical Roller Mill (VRM), the raw meal was being conveyed with the help of an air-lift. Energy saving project The air-lift was replaced with a bucket elevator. The air-lift was retained to meet the standby requirements.
Implementation methodology & time frame

The installation of the Bucket elevator took about 6 months. There was no stoppage of the plant, and the installation of the Bucket elevator was done parallely. The system was hooked on during a planned stoppage of the raw mill.
Benefits of the project

The implementation of this project resulted in reduction of power from 140 units for the airlift to 40 units for the Bucket elevator. The air to be ventilated from the silo also got reduced with the installation of the mechanical conveying system. The silo top fan was downsized to tap this saving potential. The saving annually amounted to 6.8 lakh units / year. The total benefits amounted to a monetary annual savings of Rs. 2.24 millions. The investment made was around Rs. 5.4 millions. The simple payback period for this project was 29 months.
Benefits of mechanical conveying

! Low energy consumption (25 - 30% of Pneumatic conveying) ! Reduction in power consumption of silo top dedusting system
In each cement conveying to a higher elevation is required in 3 sections raw mill (raw meal conveying to silo), kiln (kiln feed conveying to the preheater top) and cement mill (cement conveying to cement silo). This project has been taken up by design in all the new plants for all the three and majority of the older plants. The potential for replacement however exists in about 40 installations. The investment potential for this project is about Rs 200 millions (USD 4 millions)

Cement Proposal-3: Replace Air lift with Bucket Elevator for Raw-meal Transport to the Silo Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -5.400 -5.400 4.409 33.74% 5.400 4.320 2.240 -0.746 2.666 1.080 2.240 0.416 1.454 0.000 2.240 0.804 1.022 0.000 2.240 0.804 0.913 0.000 2.240 0.804 0.815 0.000 2.240 0.804 0.728 0.000 2.240 0.804 0.650 0.000 2.240 0.804 0.580 0.000 2.240 0.804 0.518 0.000 2.240 0.804 1.436 0.462 2.240 2.240 2.240 2.240 2.240 2.240 2.240 2.240 2.240 2.240 2.24 5.4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
2.986 1.824 1.436 1.436 1.436 1.436 1.436 1.436 1.436

Case study No. 4
Install a High Level Control System for Kiln Operation

Background
The Kiln is important equipment in a Cement plant. The steady and continuous operation of the Kiln is essential for producing good quality Clinker, higher level of output and lower energy consumption. The older Kilns are operated more based on manual control of various process parameters. In the next level of operation systems, rule based PID controls were introduced such as changing the coal quantity based on temperature, varying fan speed with drought etc., were introduced. The recently installed high level control systems are based on an adaptivepredictive methodology. Based on the several operational parameters, the results are predicted and action taken accordingly. The actual results are also measured periodically and given as inputs to the system. This helps in refining the prediction mechanism and improving the overall efficiency of the control systems. In the latest plants high level control systems have been installed and the control is more automated. The system operates the plant much the same way, as the best operator would do, on a continuous basis.
Previous status
In a 2200 TPD dry process pre-calciner plant operating at a capacity of about 2350 TPD, the Kiln was being controlled with conventional PLC method.

A new high level control system was introduced to operate the Kiln.

The Kiln was initially started in the manual method and after reaching the steady operation the Kiln was put in the high level control system.

There was a marginal increase in the output of the Kiln, reduction in pre-heater exhaust temperatures, Cooler Exhaust temperature and steady operation of the Kiln.
The benefits achieved are as below.

" " " " " " Reduction in Pre-heater exhaust temperature by 5C. Reduction in Cooler exhaust temperature by 5C. Variation in exhaust temperatures reduced from 10C to 5 C. Variation in clinker litre weight reduced. Reduction in thermal energy consumption by 10 kCal / kg of clinker Additionally there was also an improvement in the outlet of the kiln by about 3%
Financial analysis
The implementation of this project resulted in an annual saving of Rs 3.0 millions (only the thermal energy saving). The investment made was around Rs 4.0 millions. The simple payback period was 16 months.
The system has been successfully installed in about 20 numbers of plants (particularly the latest plants). The potential exists in atleast 30 number of kilns in India. The investment potential is about Rs 120 millions (USD 2.4 millions) Cost benefit analysis Annual Savings Rs. 3.0 millions Investment Rs. 4.0 millions Simple payback 16 months
Cement Proposal-4: Install a High level Control System for Kiln Operation Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -4.000 -4.000 8.123 60.12% 4.000 3.200 3.000 -0.072 2.743 0.800 3.000 0.789 1.762 0.000 3.000 1.076 1.369 0.000 3.000 1.076 1.223 0.000 3.000 1.076 1.092 0.000 3.000 1.076 0.975 0.000 3.000 1.076 0.870 0.000 3.000 1.076 0.777 0.000 3.000 1.076 0.694 0.000 3.000 1.076 1.924 0.619 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3 4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
3.072 2.211 1.924 1.924 1.924 1.924 1.924 1.924 1.924

Case study No. 5
Usage of High Efficiency Crusher as a Pre-Grinder before the Cement Mill

Background
The final process in a Cement plant is the operation of grinding of cement from clinker in a Cement Mill. The Cement mills are generally Ball Mills. The Ball Mills can be either open circuit or closed circuit mills. The evaluation of the Ball Mills indicates that the Ball Mill is not energy efficient in the coarse size reduction. The present trend is to install a Roll press or impact Crusher as a pre-grinder before the Mill for the initial size reduction. The installation f the pre-grinder has the following advantages. " Increase in capacity " Reduction in specific energy consumption Hence, all the Cement plants which have open circuit mills can install a pre-grinder system and achieve substantial energy saving.
Previous status
In one of the Cement plants of 2800 TPD capacity, the Cement Mill was an open circuit mill. The Mill was a two-chambered Combidan mill of 125 TPH capacity. The Specific power consumption was 29.0 units / ton of OPC - 43. The mill chambers were 5.77 m & 6.75 m long with a diameter of 4.4 m. The plant went for capacity up gradation in the Kiln and Raw mill sections and also started producing blended Cement varieties such as PPC and PSC. This necessitated a requirement for higher Cement mill capacity.

The plant installed a Horizontal Impact Crusher (HIC) of 300 TPH capacity (including recirculation). The HIC was to act as a pre-grinder and perform the initial size reduction before the Mill. The HIC had a three deck-vibrating screen to separate and return the coarse material back to the HIC. The coarse was sent to the HIC back by gravity while the fines were conveyed to the hopper through a belt conveyor. The fines from the hopper can be later fed to the Mill through a belt conveyor. Thus the HIC and the Mill were made independent so that the operation of one does not affect the other. The modified system is schematically shown in the figure.

The HIC was installed separately and then hooked up to the system. The hooking up of the HIC took about 5 days. The installation of the HIC increased the capacity of the Cement mill from 125 TPH to 140 TPH. Consequently some more modifications were taken up to further increase the capacity of the Mill. The modifications that were done are as below; ! The three deck screen originally installed were of 12 X 37 mm, 8 X 20 mm and 3 X 8 mm sizes. Consequently, after operating the plant the last screen size was modified to 5 X 12 mm. ! The diaphragm was shifted by 0.7 M towards the inlet ! The mill ventilation was improved by cutting open some of the dummy side diaphragm plates. ! The grinding media sizes were gradually changed and were converted ultimately as below. Identification Earlier Modified " I Chamber 90 60 mm 60 30 mm " II Chamber 15 mm Balls & 15 X 12 mm Balls & " 12 X 12 mm Cylpebs 12 X 12 mm Cylpebs The stabilisation of the system with all the modifications as mentioned above took nearly an year.
Benefits
The implementation of this project resulted in the following benefits: ! Increase in capacity from 125 TPH to 175 TPH ! Reduction in power consumption from 29.0 units to 25.7 units per ton of OPC - 43
Financial analysis
The total annual benefits amounted to Rs. 15 millions (only power saving). The investment made was around Rs 40 millions (in 1996). The simple payback period for this project was 32 months.
Note:
Three types of pre-grinding systems are presently available for Indian cement industry to increase the energy efficiency. The systems implemented in India include Impact crushers, Roll press and VRM. All three systems are equally effective in increasing the output and reducing the specific energy consumption. However the energy saving alone does not justify the investment in many cases. Hence, the plant should consider the implementation of this project in the capacity up gradation. The replication potential exists in 30 cement plants and the investment potential for this project is Rs 1200 millions (USD 24 millions)
Cost benefit analysis Annual Savings Rs. 15 millions Investment Rs. 40 millions Simple payback 32 months
Cement Proposal-5: Usage of High Efficiency Crusher as a Pre-Grinder before the Cement Mill Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -40.000 -40.000 26.886 30.30% 40.000 32.000 15.000 -6.099 18.838 8.000 15.000 2.511 9.956 0.000 15.000 5.381 9.619 6.846 0.000 15.000 5.381 9.619 6.113 0.000 15.000 5.381 9.619 5.458 0.000 15.000 5.381 9.619 4.873 0.000 15.000 5.381 9.619 4.351 0.000 15.000 5.381 9.619 3.885 0.000 15.000 5.381 9.619 3.469 0.000 15.000 5.381 9.619 3.097 15.000 15.000 15.000 15.000 15.000 15.000 15.000 15.000 15.000 15.000 15 40 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
21.099 12.489
Case study No. 6
Reduce Rpm of CF Silo Aeration Blowers by 10%

Present status
In cement plant in South India, there were 3 rotary blowers (2 in continuous operation) of 7.0 m3/min capacity each, connected to a common header and used for CF silo aeration. Similarly, there were 2 rotary blowers (1 in continuous operation), each of 15.5 m3/min capacity, connected to a common header and in operation for CF silo bottom bin aeration. These blowers were studied by the plant team for possible energy savings. The blowers were observed to be continuously venting out air through the safety rings. This indicated that excess air was delivered to the CF silo, which was not being accepted in the system and hence, is getting vented. There was a very good potential to optimise the air supplied to the CF silo for aeration and avoid / minimise venting of air, by reducing rpm of the blowers.

The plant team reduced the RPM of the CF silo aeration blowers by 10%, in stages of 5% each.
Benefits
The cost-economics of the proposed energy saving project will be as follows: Estimated parameters Annual savings Investment required Simple payback Units Rs.lakhs Rs.lakhs Month/s 0.94 0.20 3

Cement Proposal-6: Reduce RPM of CF Silo Aeration Blowers by 10% Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 3.269 324.62% 0.200 0.160 0.940 0.280 0.660 0.589 0.040 0.940 0.323 0.617 0.492 0.000 0.940 0.337 0.603 0.429 0.000 0.940 0.337 0.603 0.383 0.000 0.940 0.337 0.603 0.342 0.000 0.940 0.337 0.603 0.305 0.000 0.940 0.337 0.603 0.273 0.000 0.940 0.337 0.603 0.243 0.000 0.940 0.337 0.603 0.217 0.000 0.940 0.337 0.603 0.194 0.940 0.940 0.940 0.940 0.940 0.940 0.940 0.940 0.940 0.940 0.94 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Pharmaceuticals
Energy Conservation in Pharmaceutical
INTRODUCTION The chemical and Pharmaceutical industry has been one of the fastest growing industries in India. Today it occupies a very important position in the national economy, ranking fourth after iron and steel, engineering and textiles. The basic inorganic and organic chemicals produced in the industry provide the building blocks for several downstream industries, such as drugs, paper, synthetic rubber, dyestuff, plastics, polyesters, pesticides, paints, detergents, fertilizers etc. The chemical process industry has a share of about 12% in the total manufacturing output of the country and close to 15% by value in the gross industrial production. Downstream chemicals are essentially derived from basic petrochemicals. The chemical industry consists of over 14000 units with a total invested capital of over Rs 5800 bn. This investment is geographically concentrated in the five States of Maharashtra, Gujarat, Tamil Nadu, Uttar Pradesh and Andhra Pradesh. Bulk Drugs constitute a major part of the Pharmaceutical industry in India, playing a significant role in improving the health standards of the people It Consists of Medium and many small-scale units providing direct employment to about 2,00,000 and indirect employment to another 2,00,000 people The capital investment in more than the industry is about Rs.30000 Million. Today 90% of the domestic bulk drugs requirement is met by the Indian industry itself. The Bulk Drug industry contributes about Rs.51000 Million of exports, which is growing by over 20% every year. The growth and achievement of the Indian Drug Industry during the last five decades has been phenomenal and has been rated as one of the highest among the developing countries. India's bulk drug and pharmaceutical industry today has grown into a highly sophisticated industrial segment, confirming to the International standards of production Technology and Quality Control. This has thrown upon the intensity of energy playing a pivotal role in this sector. The actual implemented case studies presented imbibes the Energy Efficient practices adopted in Chemical & Pharmaceutical units.

Case study No 1
Install Variable Frequency Drive (VFD) for Fluidized Bed Drier (FBD) Blower
Background
One of the pharmaceutical units in South India utilizes fluidized bed dryer for drying requirement of its specialty chemicals. The operation of the dryer was reviewed by the plant team to identify opportunities for energy saving in the dryer. The FBD at this pharmaceutical unit is being operated on batch type operation, having a batch time of 45 minutes. The drier is operated for about 21 batches every day, on an average. In the FBD, the drying rate varies with time. A schematic of the drying rate with time is shown in the graph:
The decrease in moisture content is steep during the initial stages of drying and gradually reduces. During the last phase of drying, the moisture content remains almost steady. To ensure effective fluidization, the deciding parameter is the air velocity. minimum velocity should be ensured at all stages of fluidization. Energy Saving Proposal The plant team realized that good potential for energy saving exists by varying the air quantity depending on the drying rate. However, a minimum air flow can be maintained to ensure effective fluidization. The air flow should be maximum when the drying rate is maximum and the rate of decrease of moisture is steep. As the rate of decrease reduces, the air flow rate can also be gradually reduced. A
The change in fan flow rate was achieved by installing a VFD to the FBD fan. The change in speed was programmed depending on the batch timing. The rate of change of speed was arrived at on trail and error basis. Benefits Implementing this proposal has resulted in an annual energy saving of Rs. 0.138 millions. This called for an investment of Rs. 0.18 millions and had a simple payback period of 16 months.

Pharmaceuticals Proposal-1: Install Variable Frequency Drive for Fluidised Bed Dreir (FBD) Blower Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.180 -0.180 0.376 61.36% 0.180 0.144 0.138 -0.002 0.140 0.125 0.036 0.138 0.037 0.101 0.081 0.000 0.138 0.050 0.088 0.063 0.000 0.138 0.050 0.088 0.056 0.000 0.138 0.050 0.088 0.050 0.000 0.138 0.050 0.088 0.045 0.000 0.138 0.050 0.088 0.040 0.000 0.138 0.050 0.088 0.036 0.000 0.138 0.050 0.088 0.032 0.000 0.138 0.050 0.088 0.028 0.138 0.138 0.138 0.138 0.138 0.138 0.138 0.138 0.138 0.138 0.138 0.18 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No 2
Optimize Operation of Distillation Column Cooling Water Pump

Background
Distillation columns are one of the major energy consumers in some of the chemical and pharmaceutical industries. Several industries have taken various measures to optimize on the power consumption of auxiliary equipment in distillation columns. The cooling water circuit in distillation columns is of the major auxiliary energy consumers.
Present Status
In one of the distillation system in a pharmaceutical unit, the plant team reviewed the performance of the cooling water circuit in detail for possible energy savings. The observations made are as below: The cooling water demands of the distillation column were met through a dedicated cooling tower system. A cooling water pump was used to circulate water from the cooling tower to the distillation column. The return water from the process was taken back to the cooling tower top. The motor rating of the pump is 37 kW and the power consumed by the pump is 32.4 kW. The suction and the discharge of the pump were throttled and were opened to an extent of 50% and 25% respectively. The pressure at the discharge of the pump, after the control valve is 2.7 kg/cm2, indicating that head required for the pump is 27m. The throttling of the pump was a clear indication of the excess capacity/head in the pump. The valve control led to pressure loss across the control valve and hence energy loss.

There was a good potential to reduce the power consumption by the pump by installing a pump of correct head/capacity. This was done after verifying the required capacity and the design specification of the existing pump. The installation of a Variable Frequency drive (VFD) to the pump and varying the speed based on the requirement resulted in an efficient operation of the pump. The VFD was operated to meet the distillation column temperature requirement without throttling at the suction and discharge of the pump.
Benefits
The installation of a Variable Frequency Drive (VFD) to the distillation column cooling water pump resulted in an annual energy saving of Rs.0.146 millions. The investment required was Rs.0.22 lakhs which paid back in 18 months.

Pharmaceuticals Proposal-2: Optimize Operation of Distillation Column Cooling Water Pump Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.220 -0.220 0.378 53.62% 0.220 0.176 0.146 -0.011 0.157 0.140 0.044 0.146 0.037 0.109 0.087 0.000 0.146 0.052 0.094 0.067 0.000 0.146 0.052 0.094 0.059 0.000 0.146 0.052 0.094 0.053 0.000 0.146 0.052 0.094 0.047 0.000 0.146 0.052 0.094 0.042 0.000 0.146 0.052 0.094 0.038 0.000 0.146 0.052 0.094 0.034 0.000 0.146 0.052 0.094 0.030 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.22 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 3
Reduce Speed of Spin Flash Drier ID Fan

Background
Spin flash driers are utilized in some of the specialty chemical divisions for drying the material. One of the major energy consumers in the Spin Flash Dryer is the ID fan. Various energy saving alternatives are being employed by units to optimize on the energy consumption of the ID fan in the Spin Dryer.
Present Status
The spin flash drier in one of the pharmaceutical units had design capacity of 600 kg/h with an evaporation rate of 300 kg/h. This drier was designed to reduce the moisture content from as high as 50% to less than 8% in the input feed material. The spin flash drier was provided with two stage cyclones for collecting the product. The drier is provided with exhaust blower/ID fan which is used to exhaust the drying air as well as the evaporated water vapor to the atmosphere through the chimney. As per design the 1st cyclone separator was provided to separate the dried product from the air stream while passing from drier to second cyclone through duct. The 2nd cyclone separator was provided to further separate the dried product from the air stream from the 1st cyclone. But during the actual operating conditions, the plant team observed that all the dried material was collected in the 1st cyclone itself and no material are collected in 2nd cyclone. Due to excess design cushion in ID fan, the draft was controlled by a damper provided at the 2nd cyclone bottom at material collection point. This resulted in fresh air infiltration through 2nd cyclone, resulting in increased power consumption of Spin flash drier ID fan.

Good potential for energy saving exist in avoiding fresh air infiltration and reducing the power consumption of the ID fan correspondingly. The excess capacity in ID fan was controlled by installing a Variable frequency drive. The draught and hence the air infiltration can be controlled by controlling the speed of the fan. Controlling the fan with the variable frequency drive offered the following advantages: ! Avoided 60 to 80 mm WC of pressure drop across the cyclone ! Avoided fresh air infiltration and decreased power consumption of ID fan ! Increased scope of heat recovery from the drier exhaust which was around 107oC, presently low due to fresh air infiltration from the 2nd cyclone.
Benefits The annual energy saving realized by implementing the Variable Frequency Drive is Rs.0.068 millions. This called for an investment (for VFD) of Rs. 0.1 millions, and had a simple payback period of 18 months.

Pharmaceuticals Proposal-3: Reduce Speed of Spin Flash Drier ID Fan Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.100 -0.100 0.178 54.86% 0.100 0.080 0.068 -0.004 0.072 0.065 0.020 0.068 0.017 0.051 0.040 0.000 0.068 0.024 0.044 0.031 0.000 0.068 0.024 0.028 0.000 0.068 0.024 0.025 0.000 0.068 0.024 0.044 0.022 0.000 0.068 0.024 0.044 0.020 0.000 0.068 0.024 0.044 0.018 0.000 0.068 0.024 0.016 0.000 0.068 0.024 0.014 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.068 0.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.044 0.044
0.044 0.044

Case study No.4
Optimise the Operation of Spin Flash Drier

Background
Spin flash driers are utilized in some of the specialty chemical divisions for drying the material. One of the major energy consumers in the Spin Flash Dryer is the ID fan. Various energy saving alternatives are being employed by units to optimize on the energy consumption of the ID fan in the Spin Dryer.
Present Status
The spin flash drier was utilized in one of the pharmaceutical units in South India for drying the cotton after the centrifuge operation. This spin flash drier had design capacity of 600 kg/h with an evaporation rate of 300 kg/h. This drier was designed to reduce the moisture content from as high as 50% to less than 8% in the input feed material. Fresh air from the atmosphere was drawn across the steam preheater. The air gets preheated by the steam preheater and the preheated air was supplied to the LDO heater. The hot air from the LDO heater was supplied to the spin flash drier for drying operation. The average temperature of the exit air from the driers is 107oC. The equivalent quantity of heat let out from the spin flash drier is 59,888 kcal/hr (considering final exhaust temperature of about 70oC). The equivalent LDO consumption is about 5.9 kg/hr.

The plant team wished to utilize the potential available to recover this exhaust heat or utilise the heat to the maximum moisture removal. This was achieved by installing a variable frequency drive which reduced the speed of the drier based on the humidity content in the exhaust air. It was more beneficial from the blower power consumptions point of view, resulting in reduction of power consumption. Similar project has been implemented in several textile driers and has resulted in tremendous benefits in terms of reduction in power consumption of blower and reduced fuel consumption. Action Plan adopted: Installation of a Relative Humidity (RH) meter to measure the relative humidity of the air from the drier As a next step, the plant team installed a Variable Frequency Drive (VFD) to the exhaust fan/ ID fan of the drier. It was operated in closed loop with RH content from the air of the drier. Higher was the RH, higher would be the speed of the fan and viceversa.
Benefits The annual energy saving realized by implementing this proposal was Rs 0.254 millions. The investment required for the installation of a new VFD was Rs. 0.2 millions simple payback period was 10 Months.

Pharmaceuticals Proposal-4: Optimize the Operation of Spin Flash Drier Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 0.783 97.29% 0.200 0.160 0.254 0.034 0.220 0.197 0.040 0.254 0.077 0.177 0.141 0.000 0.254 0.091 0.163 0.116 0.000 0.254 0.091 0.104 0.000 0.254 0.091 0.092 0.000 0.254 0.091 0.163 0.083 0.000 0.254 0.091 0.163 0.074 0.000 0.254 0.091 0.066 0.000 0.254 0.091 0.059 0.000 0.254 0.091 0.052 0.254 0.254 0.254 0.254 0.254 0.254 0.254 0.254 0.254 0.254 0.254 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.163 0.163
0.163 0.163 0.163

Case study No. 5
Install Heat Recovery System from the Hydrolysis Autoclave System for PreHeating Water
Background
Heat recovery from steam / condensate has been extensively utilized in several chemical / pharmaceutical industries. Newer opportunities are being constantly explored to maximize heat recovery options. In one of the pharmaceutical units, Hydrolysis-Autoclave system was utilized for one of the applications. During the pressure stabilization of the Hydrolysis autoclave, the reaction in the vessel turns exothermic, resulting in substantial generation of heat and pressure. To maintain the pressure in the autoclave, the heat generated was rejected to the atmosphere through a condenser. Tremendous amount of heat in the form of L.P steam was generated and was being let out into the atmosphere.
Present status
A conservative estimate made by the team indicated a substantial release of heat to the atmosphere to the extent of more than 4 TPD. Another section, lye dilution, was utilizing hot water in the plant. The usage of water is as under: Out of about 25m3/day of water is being used for lye dilution, the distribution is as under: ! ! ! 5 m3/day 5 m3/day 15 m3/day = = = Hot condensate Scrubber water Fresh Water
The utilization of hot water for lye dilution would result in reduction of steam consumption in this section.

The plant team initially had an apprehension that the installation of heat recovery system could result in the pressurization of the autoclave. However, the system was designed with sufficiently high vent pipe (6 dia) so that the system is not pressurized. The plant team installed a heat recovery system for preheating soft water. The preheated soft water was used for lye dilution. By installing the system, the plant team was able to heat the water of 15 m3/day at 25C to about 90C. Installation of this heat recovery system has resulted in a reduction of atleast 1 TPD of live steam
Benefits
Installation of Heat Recovery System for the Hydrolysis Autoclave section has resulted in an annual savings of Rs 0.086 millions. This called for an investment of Rs 0.05 millions, which paid back in 7 months.

Pharmaceuticals Proposal-5: Install High Recovery System from the Hydrolysis Autoclave System for Pre-heating Water Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.050 0.040 0.086 0.017 -0.050 0.277 128.15% 0.062 0.010 0.086 0.027 0.047 0.000 0.086 0.031 0.039 0.000 0.086 0.031 0.035 0.000 0.086 0.031 0.031 0.000 0.086 0.031 0.028 0.000 0.086 0.031 0.025 0.000 0.086 0.031 0.022 0.000 0.086 0.031 0.020 0.000 0.086 0.031 0.018 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.086 0.05 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.050 0.069 0.059 0.055 0.055 0.055 0.055 0.055 0.055 0.055 0.055

Case study No. 6
Utilise the Condensate from Process Area for Boiler Feed Water or for Hot Water Use in Process
Background
Chemical & pharmaceutical industries are extensive users of steam. In many industries, the condensate collected after utilizing the heat available in the steam is not put back to the boiler fearing contamination. Contaminated condensate could result in several process problems. However, chemical & pharmaceutical units today are now looking at newer opportunities to maximize opportunities for good use of condensate.
Present Status
The condensate from the process areas in one of the pharmaceutical industry was collected in individual receivers and the hot water was used mainly for floor washing and equipment cleaning. The boiler feed water consisted only of 65% return condensate and the balance 35% was make-up DM water.
Energy saving proposal

The plant team then analyzed the condensate water collected in various users. Based on the analysis, the plant team understood that the condensate can be used for process use, as the contaminants were within the acceptable limits. There was a potential to recover atleast 50% of the condensate and utilize it for boiler feed water or for hot water use in process in the respective plants. This has resulted in both DM water savings and steam savings.
Benefits
The estimated annual savings achieved by recovering the condensate is Rs 0.195 millions. This required an investment of Rs 0.05 millions and got paid back in 4 months.

Pharmaceuticals Proposal-6: Utilise the Condensate from Process Area for Boiler Feed Water or for Hot Water Use in Process Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.050 0.040 0.195 0.056 -0.050 0.672 272.49% 0.124 0.010 0.195 0.066 0.103 0.000 0.195 0.070 0.089 0.000 0.195 0.070 0.079 0.000 0.195 0.070 0.071 0.000 0.195 0.070 0.063 0.000 0.195 0.070 0.057 0.000 0.195 0.070 0.051 0.000 0.195 0.070 0.045 0.000 0.195 0.070 0.040 0.195 0.195 0.195 0.195 0.195 0.195 0.195 0.195 0.195 0.195 0.195 0.05 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.050 0.139 0.129 0.125 0.125 0.125
0.125 0.125 0.125 0.125 0.125

Case study No. 7
Reduce the Speed of AHU Fan in Syrup Manufacturing Area

Background
Air conditioning system is one of the major energy consumers in chemical & pharmaceutical units. The Air Handling Units (AHU) are one of the major auxiliary energy consumers in the air conditioning system. Nowadays, various plants have optimized the power consumption in AHUs. The performance of the AHUs are studied with respect to the design specifications and in several plants, AHU fans have been observed to offer good potential.
Present status
In one of the pharmaceutical units, the specifications of AHU fans operating in syrup manufacturing area are given below. AHU Fan 1 5 8 Design Pressure (mm H2O) 87 87 87 Rated Capacity Cfm 10,500 21,000 9,500 Developed pressure (mm H2O) 66 35 48
The operating pressure was much lower than the design pressure rise of these AHU fans. This has resulted in inefficient operation of the fans and thereby, higher power consumption.

The plant team observed that there was a good potential to save energy by optimizing the operation of the fans and matching with requirements. The speeds of the AHU fans were reduced by 10%. This was achieved by changing the size of the driver / driven pulleys.
Benefits
The annual energy saving achieved was Rs. 0.046 millions. This required an investment of Rs. 0.03 millions for changing the pulleys, which paid back in 8 months.

Pharmaceuticals Proposal-7: Reduce the Speed of AHU fan in Syrup Manufacturing Area Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.030 0.024 0.046 0.008 -0.030 0.146 115.44% 0.034 0.006 0.046 0.014 0.025 0.000 0.046 0.017 0.021 0.000 0.046 0.017 0.019 0.000 0.046 0.017 0.017 0.000 0.046 0.017 0.015 0.000 0.046 0.017 0.013 0.000 0.046 0.017 0.012 0.000 0.046 0.017 0.011 0.000 0.046 0.017 0.009 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.030 0.038 0.032 0.029 0.029 0.029 0.029 0.029 0.029 0.029 0.029

Ceramics
Energy Conservation in Ceramics
Introduction
The Ceramic industry is one of the age-old industries and has evolved over the centuries, from the potters wheel to a mo dern industry with sophisticated controls. This is one of the fast growing industries, with a projected growth rate of 8%. The average energy cost as a percentage of manufacturing cost is 20 to 25%. There are at present 14 units in the organized sector with an installed capacity of 12 lakh MT. Some of the units have either closed or merged with the existing units. It accounts for about 2.5% of world ceramic tile production. The ceramic tiles industry has grown by about 11% per annum during the last three years. Its demand is expected to increase with the growth in the housing sector. Indian tiles are competitive in the international market. These are being exported to East and West Asian Countries. The ceramic industry is highly energy intensive. The energy consumed by the ceramic industry is worth about US $ 47 million per year. The main fuel used by the ceramic industry is LPG and natural gas. The other fuels used are furnace oil, LSHS, LDO and HSD. The energy cost as a percentage of manufacturing cost, is presently around 20-25%. The expenditure on energy ranks only next to the raw material in the manufacture of ceramic. With the ever-increasing fuel prices and power tariffs, energy conservation needs no special emphasis. In this section, several actual implemented case studies in Glass & Ceramic industry is highlighted.

Case study No. 1
Install Variable Frequency Drives (VFDs) for Producer Gas Air Blowers in Both Refractory and Stoneware Plants
Background
The producer gas generator in one of the ceramic units requires oxygen for combustion, which is supplied by the air blowers. These blowers were observed to be operating with discharge damper control (typically, 30-40% open). This indicates the excess capacity/ static pressure rise of the blower. The discharge damper opening is in closed loop with the rate of production and pressure of the producer gas. Hence, the capacity requirement of the blower varies continuously. The measured pressure drop across the damper, in case of the refractory plant is 180 mm WC, which is about 47% of the total pressure rise of the fan. Similarly, the measured pressure drop across the damper of the blower in the stoneware plant is 290 mm WC, which is about 60% of the total pressure rise of the fan.

The operation of a fan/blower with damper control is an energy inefficient method of capacity control, as a part of the energy supplied to the fan is lost across the dampers. The best energy efficient method of capacity control of a fan, having varying capacity requirements is the installation of variable frequency drives (VFD's) and varying its RPM. The installation of a VFD also improves the operating efficiencies of the fans.
Recommendation
It was recommended to install variable frequency drive for the producer gas air blowers, in the refractory and stoneware plants. The fans have to be operated with full damper opening, after the installation of VFD's. The VFD can be put in closed loop with the existing pressure sensor. This will continuously monitor the producer gas discharge pressure and give a signal to the blower to either reduce or increase the RPM of the blower, matching the varying capacity requirements.
Benefits
The annual energy saving realized is Rs.0.088 millions. This required an investment (for VFD's and controls) of Rs.0.14 millions, which had a simple payback period of 20 months. Cost benefit analysis

Ceramics Proposal-1: Install Variable Frequency Drives (VFDs) for Producer Gas Air Blowers in Both Refractory and Stoneware Plants Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.140 -0.140 0.223 50.94% 0.140 0.112 0.088 -0.009 0.097 0.086 0.028 0.088 0.022 0.066 0.053 0.000 0.088 0.032 0.056 0.040 0.000 0.088 0.032 0.056 0.036 0.000 0.088 0.032 0.056 0.032 0.000 0.088 0.032 0.056 0.029 0.000 0.088 0.032 0.056 0.026 0.000 0.088 0.032 0.056 0.023 0.000 0.088 0.032 0.056 0.020 0.000 0.088 0.032 0.056 0.018 0.088 0.088 0.088 0.088 0.088 0.088 0.088 0.088 0.088 0.088 0.088 0.14 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 2
Install a Bunker with Slide-Gate Mechanism and Mechanical Feeding System for Bauxite and Clay Feeding to the Impact Mills
Background
In one of the ceramic unit in south India, there were five impact mills for crushing of the different raw materials used in refractory brick preparation. The mill circuit comprised of the following equipment: ! ! ! ! ! ! ! Impact mills - 2 for bauxite, 1 for clay, 1 for grog & 1 for special materials Primary bucket elevator Magnetic separator Vibrating screen Secondary bucket elevator Hopper Dust collection blowers
The feeding and utilization pattern of the milling circuit was studied in detail for possible energy savings. The observations are as follows: ! The feeding of the impact mills is done manually. The feeding rate or loading of mill per shift is fixed. ! The feeding sequence is can be split up as: " " " " Loading of trolleys at the raw material godown Transporting the trolley to the impact mills Loading of the impact mill based on bucket elevator current loading Taking the trolley back to godown for filling
! There is lot of idle time in the feeding sequence, for the mills and connected auxiliaries, such as, bucket elevators and vibrating screens. ! The estimated idle time for the mills is 30%, while that of the other auxiliaries is 45%. There is no useful work done during the idle running, resulting in power loss, which is estimated at about 14.0 kW.

There was a good potential to reduce the idle running of equipment, by mechanizing the mill feeding process. The mechanization process will enable continuous feeding of the mills.
Recommendation
The following measures were adopted in implementing the energy saving proposal: " Installing bunkers at the individual mills, with slide gate mechanism. These bunkers will double-up as feed device cum buffer storage. The slide gate can regulate the feed quantity to the individual mills.
" The material feeding to the bunkers were mechanized, by installing a front-end loader. This avoided the manual element of feeding and hence, reduce the idle time. The following benefits were achieved, by the above modifications: " " " " Reduced idle time of mills and auxiliaries Increased output Reduced operating time of mills Reduction in power consumption
Benefits
The annual energy savings potential was Rs.0.68 millions. This required an investment (for the bunkers and vibro-feeders only) of Rs. 0.75 millions, which had a simple payback period of 14 months. Cost benefit analysis Annual Savings Rs. 0.68 millions Investment Rs. 0.75 millions Simple payback 14 months
Ceramics Proposal-2: Install Variable Frequency Drives (VFDs) for Producer Gas Air Blowers in Both Refractory and Stoneware Plants Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.750 -0.750 1.949 71.60% 0.750 0.600 0.680 0.029 0.651 0.582 0.150 0.680 0.190 0.490 0.391 0.000 0.680 0.244 0.436 0.310 0.000 0.680 0.244 0.436 0.277 0.000 0.680 0.244 0.436 0.247 0.000 0.680 0.244 0.436 0.221 0.000 0.680 0.244 0.436 0.197 0.000 0.680 0.244 0.436 0.176 0.000 0.680 0.244 0.436 0.157 0.000 0.680 0.244 0.436 0.140 0.680 0.680 0.680 0.680 0.680 0.680 0.680 0.680 0.680 0.680 0.68 0.75 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 3
Insulation of the Top Portion of the Ring Chamber Kiln with Insulating Powder
Background
Generally, the top portion of the ring chamber kilns lacks proper insulation due to the construction intricacies. The normal trend is to have a low weight (Minimum layer of insulating bricks) on the top portion of the ring chamber kiln. As a result of this, the surface temperature on the top portion of the ring chamber kiln is high, leading to higher radiation losses. This case study highlights an example of minimising the radiation losses from the top portion of a ring chamber kiln.
Previous Status
In one of the refractory brick industry, the measured kiln surface temperature of a ring chamber kiln were as follows ! Sides 50 to 60oC (Average) ! Top portion 110 to 120oC (Average) This indicates that the radiation heat losses from the top portion is high and a substantial scope to reduce the heat losses atleast to the level of that of the sides.

The top Portion of the ring chamber kiln was thoroughly cleaned and was filled with 75 to 100 mm thick layer of insulating powder. The application of the insulating powder did not significantly add to the weight of structure.
Implementation Status and time frame

Filling the top portion of the ring chamber kiln with insulating powder in stages of 25 mm thick layers carried out during the implementation. The total implementation activity was completed in 4 months time. The plant team did not face any problem during and after implementation.
Benefits of the Project

The insulation of the top portion of the kiln drastically reduced the surface temperature from 110oC to 50oC, resulting in a lower fuel consumption.
Financial Analysis
The annual energy saving achieved was Rs. 0.40 million. The Investment made was Rs. 0.20 million, which has got paid back in 6 months. Cost benefit analysis

Ceramics Proposal-3: Insulation of the Top Portion of the Ring Chamber Kiln with Insulating Powder Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 1.312 147.05% 0.200 0.160 0.400 0.086 0.314 0.280 0.040 0.400 0.129 0.271 0.216 0.000 0.400 0.144 0.257 0.183 0.000 0.400 0.144 0.257 0.163 0.000 0.400 0.144 0.257 0.146 0.000 0.400 0.144 0.257 0.130 0.000 0.400 0.144 0.257 0.116 0.000 0.400 0.144 0.257 0.104 0.000 0.400 0.144 0.257 0.092 0.000 0.400 0.144 0.257 0.083 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.4 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 4
Provision of Insulation for the Furnace Shell Electric Arc Furnace Insulated with Alumina Bricks on the Inner Side of the Shell
Background
In the ceramic fibre manufacturing industry, melting furnace is the major consumer of electrical energy. The melting of ceramic raw material is carried out in an electric arc furnace. The raw materials in powder form are fed into the furnace where it gets fused by the electric arcs. Later, the fused material is blown by compressed air to form ceramic fibres.
Heat Balance of Arc Furnace

The arc furnace consists of a steel shell. The temperature of fusion varies from 1200 to 1250oC. To avoid damage of the steel shell, water cooling panels are provided to keep the shell temperature below the softening point. The usage of water panels is an important safety requirement, but unfortunately carries away enormous amount of heat energy from the arc furnace. This results in higher energy consumption of the arc furnace in a typical ceramic fibre industry.
Previous Status
To estimate the amount of heat losses, the arc furnace heat balance was developed. The summary of the heat balance of the furnace is as follows: ! ! ! ! ! Item Power kW % of Total Power Actual heating (for melting) 115 31 Loss through water 160 43 Core reactor / transformer combination 55 15 Radiation loss and others 40 11 " Total 370 100 It is clear from the heat balance that the major heat loss is through cooling water. It was also found that, out of the 160 Kw heat loss through cooling water, 60 65 Kw was for cooling the shell. The balance 100 kw heat losses was through cooling water used for cooling electrodes, clamps, cables, etc.,

The furnace was insulated by providing one layer of special insulated bricks (high Alumina bricks) on the inner side of the shell. This reduced the heat loss to shell cooling water considerably, thereby reflecting in the overall reduction of energy consumption.
Benefits
The major benefit of this project was the minimisation of heat loss from furnace shell. The cooling water flow also reduced due to the minimized heat loss.
The specific energy consumption reduced from 4.1 Kw / Kg of ceramic fibre to 3.75 Kw/kg of ceramic fibre produced, after implementation. This has resulted in an overall savings of 0.35 kw / Kg of ceramic fibre produced.
Financial Analysis
The annual savings achieved was Rs.1.08 million. This investment made was Rs. 0.14 million, which was paid back in 2 months.
Benefits of insulation on the inner side of steel shell

! Minimised heat loss ! Reduced specific energy consumption ! Reduced shell cooling water consumption

Annual Savings Rs. 1.08 millions Investment Rs. 0.14 millions
Simple payback 2 months

Ceramics
Proposal-4: Provision of Insulation for the Furnace Shell Electric Arc Furnace Insulated with Alumina Bricks on the Inner Side of 1.08 0.14 0 1 1.080 0.140 0.112 1.080 0.347 -0.140 -0.140 3.817 519.72% 0.733 0.654 0.028 1.080 0.377 0.703 0.560 0.000 1.080 0.387 0.693 0.493 0.000 1.080 0.387 0.693 0.440 0.000 1.080 0.387 0.693 0.393 0.000 1.080 0.387 0.693 0.351 0.000 1.080 0.387 0.693 0.313 0.000 1.080 0.387 0.693 0.280 0.000 1.080 0.387 0.693 0.250 0.000 1.080 0.387 0.693 0.223 2 1.080 3 1.080 4 1.080 5 1.080 6 1.080 7 1.080 8 1.080 9 1.080 10 1.080 Discount Rate (i) 12%
Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation
1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV

Case study No. 5
Installation of Additional Insulating Layers for the Ring Chamber Kiln Doors
The ring chamber kiln normally has a temporary constructed door for loading and unloading of refractories. Conventionally the temporary door is constructed by sealing with a single layer of insulating bricks after completion of raw refractory loading. In most of the cases, the single layer insulation is inadequate leading to higher heat losses through the temporary door. This has led to the development of multi-layer insulating bricks for minimising the heat losses through the temporary doors. A typical door of a ring chamber kiln
Previous Status
The ring chamber kiln had 12 doors, through which the raw bricks (to be fired) were loaded inside the kiln. Once the raw bricks are fully loaded, the doorway was closed by constructing a single layer of insulating brick and sealing with insulating powder. The surface temperature of the temporary door was measured to be 80 110oC, resulting in high radiation losses.

The practise of constructing single layered insulating brick for the temporary door was changed to a multi-layer (3 Layers) insulating brick construction. An air gap was also maintained between the layers. The concept is schematically shown here.
Concept of the proposal

The provision of multi-layer insulating brick with air gaps, acts as an additional insulation for the temporary door, resulting in minimisation of heat losses.
Benefits of the Project

The provision of additional layers of insulating bricks at the doorway reduced the heat loss from the door sides drastically. The outside surface temperature of the doors was around 50oC after the new construction.
Financial Analysis
The annual energy saving achieved was Rs. 0.30 million. The investment made was Rs. 0.10 million which has got pay back in 4 months.
Benefits of multilayer of insulating brick for door way

! Door surface temperature reduction from 100C to 50C ! Fuel savings
Cost benefit analysis Annual Savings Rs. 0.30 millions Investment Rs. 0.10 millions Simple payback 4 months
Ceramics Proposal-5: Installation of Additional Insulating Layers for the Ring Chamber Kiln Doors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.250 -0.250 0.698 75.44% 0.250 0.200 0.240 0.014 0.226 0.201 0.050 0.240 0.068 0.172 0.137 0.000 0.240 0.086 0.154 0.110 0.000 0.240 0.086 0.154 0.098 0.000 0.240 0.086 0.154 0.087 0.000 0.240 0.086 0.154 0.078 0.000 0.240 0.086 0.154 0.070 0.000 0.240 0.086 0.154 0.062 0.000 0.240 0.086 0.154 0.055 0.000 0.240 0.086 0.154 0.050 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.24 0.25 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case study No. 6
Optimisation of Kiln Loading

Background Ceramic products like tiles, sanitary ware, crockery, insulators, etc., are glazed in Kilns, which is a major consumer of thermal energy. The optimisation of product loading in the kilns can result in substantial energy savings. The raw wares, after pressing / molding is coated with ceramic material and then fed into the kiln for glazing. The raw wares are stacked in the kiln cars and then pushed into the kiln. The stacking pattern plays a vital role in energy consumption of the kilns. Conventionally, for ease of handling, the raw wares are stacked with huge spaces between them. The space provided is also determined by the contour of the raw wares. The minimization of space between the raw wares by proper planning can facilitate improved loading of the kiln, leading to energy savings. Previous Status The energy consumption figures of a sanitary ware unit, having 50-60 standard products with fixed shapes/contour is as shown below:
Oil consumption Production Specific Energy

Litres / month Tons / Month Consumption Litres / ton " Kiln 1 119360 378.48 315.36 " Kiln 2 34519 86.52 398.97

The plant team developed a new supporting structure so as to load the kiln to the maximum. The gaps between the wares were minimised to increase the loading. In some cases two tier / three tier system was adopted to maximise the loading.
Concept of the Project

In any kiln, there are fixed losses viz., radiation losses, kiln car heating etc., irrespective of the loading. When the load factor is very high, the fixed energy losses get distributed to a larger volume of production resulting in lower specific energy consumption.
Benefits
The benefits of this project were two fold: a. Increased production and lower specific energy consumption. b. Less inventory of raw wares and hence the moulds.
Financial Analysis The annual saving achieved by this project was Rs. 2.70 million. This had an investment of Rs.0.30 million for the support structure, which was paid back in 2 months. Benefits of optimising load on kiln ! Increase in production ! Lower specific energy consumption Cost benefit analysis Annual Savings Rs. 2.70 millions Investment Rs. 0.30 millions Simple payback 2 months
Ceramics Proposal-6: Optimisation of Kiln Loading Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.300 -0.300 9.577 602.62% 0.300 0.240 2.700 0.883 1.817 1.623 0.060 2.700 0.947 1.753 1.397 0.000 2.700 0.969 1.731 1.232 0.000 2.700 0.969 1.731 1.100 0.000 2.700 0.969 1.731 0.982 0.000 2.700 0.969 1.731 0.877 0.000 2.700 0.969 1.731 0.783 0.000 2.700 0.969 1.731 0.699 0.000 2.700 0.969 1.731 0.624 0.000 2.700 0.969 1.731 0.557 2.700 2.700 2.700 2.700 2.700 2.700 2.700 2.700 2.700 2.700 2.7 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%

Case Study 7
Installation of Low Thermal Mass (LTM) Cars in Tunnel Kiln

Background
A typical LTM kiln car in a ceramic industry, kiln is one of the major consumer of energy. Conventionally, the ceramic tile and sanitary ware industry use the open flame tunnel kiln, to fire the products. The open flame tunnel kiln is a continuous type kiln, wherein, the raw product is fed on one side and on the other side the finished product is taken out. The raw product undergoes firing, drying & cooling cycles, as it moves over from the front end to the back end of the kiln. The material movement through the tunnel is by kiln cars, run on rails. The kiln cars are like train bogies designed to hold the products. The Kiln cars are constructed with refractory and insulating bricks. Due to their high thermal mass, Kiln cars consume considerable amount of heat energy supplied to the kiln. Normally, the heat absorbed by kiln cars is as high as 40 - 50% of the total heat energy supplied to the Kiln. The thermal mass reduction of the kiln cars can give tremendous energy savings. Low thermal mass materials (LTM) are now being used for kiln car construction, which reduces the thermal mass considerably.
Previous Status
In one of the ceramic sanitary ware industry, an open flame tunnel kiln was used for firing applications. This kiln was using LPG as fuel with a direct firing mode. The operating parameters were as follows: " Cycle No. of cars Throughput@ LPG Specific Gas " Time (hours) No./day 240 kg /car(kg/day) consumption " MT / day MT / Ton 13 102 24480 3.36 0.137

The following modifications were made to reduce the weight of the kiln cars : ! Previously refractory bricks were used as supporting pillars for holding the racks. This was replaced with Hollow Ceramic Coated Pipes ! Introduction of ceramic fibre blankets at the base of the car instead of refractory brick base ! Use of cordierite (Hollow) blocks to hold the raw wares instead of solid refractory mass The car furniture weight was reduced from 287 Kg/ car to 220 Kg/car (23% weight reduction)

The use of low thermal mass materials (cordierite etc.) in kiln cars resulted in thermal mass reduction, thereby resulting in fuel savings. The other advantages of LTM materials are Fuel conservation, Increased capacity and longer service life. The incidental advantages due to LTM materials are less Thermal shock resistance, Ease of assembly and a good mechanical strength.
Implementation, problem faced and time frame

The implementation of this project was done in phases; so as to minimise the production loss. This was mainly due to limited availability of kiln cars. The plant team did not face any major problems during the implementation of this project. The time taken for the implementation was one month.
Benefits
The benefits were multifold, which are as follows: ! An increase in the production from 24.48 MT to 28.8 MT (17.6%) ! Reduction in the cycle time from 13 Hrs to 11 Hrs, resulting in increased no. of cars handled per day ( 102 to 120 cars per day) ! Fuel savings of 0.58 MT / day. The summary of operating parameters before and after the modification is as follows " Description before Conversion after Conversion Cycle time (hours) 13 11 No. of cars No./day 102 120 " Throughput (kg/day) 24480 28800 " LPG consumption MT / day 3.36 3.36 " Specific Gas Consumption MT / Ton 0.137 0.117 " Throughput increase MT/Day - 4.32 " LPG savings MT/Day - 0.58 Financial Analysis The Annual energy saving achieved was Rs. 13.14 million. This required an investment of Rs.12.5 million, which was paid back in 12 months.
Benefits of LTM cars

! Increase in production ! Reduction cycle time ! Fuel savings


Ceramics Proposal-7: Installation of Low Thermal Mass (LTM) Cars in Tunnel Kiln Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -12.500 -12.500 39.027 81.94% 12.500 10.000 13.140 1.126 12.014 10.726 2.500 13.140 3.817 9.323 7.432 0.000 13.140 4.714 8.426 5.997 0.000 13.140 4.714 8.426 5.355 0.000 13.140 4.714 8.426 4.781 0.000 13.140 4.714 8.426 4.269 0.000 13.140 4.714 8.426 3.812 0.000 13.140 4.714 8.426 3.403 0.000 13.140 4.714 8.426 3.039 0.000 13.140 4.714 8.426 2.713 13.140 13.140 13.140 13.140 13.140 13.140 13.140 13.140 13.140 13.140 13.14 12.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case Study 8
Installation of Recuperators at the Cooling End of Kiln and Utilizing the Hot Air Produced for Drying Raw Wares
Background
In the ceramic industry, the raw materials are mixed through mixers, pressed and then converted to raw wares through moulds. The molded material has to be dried in batch driers before loading on to the kiln cars. The temperatures inside the dryers are maintained at 55 to 60oC so as to evaporate the moisture in the molded material. Conventionally ceramic plants use leco/coal as fuel, to generate hot air for drying. Some plants even use electrical heating system or fuels like furnace oil, LPG etc., for drying. In modern plants recuperators are provided to recover the heat from the exhaust gases of the Kiln. Thus the hot air generated by indirect heat exchange with Kiln exhaust air is used for drying purposes. This resulted in the elimination of usage of fuel or electrical heaters in the drying moulds.
Previous Status
In one sanitary ware unit, leco was used as a fuel for generating hot air for the drying purposes. The leco consumption was around 1300 kgs per day.

A recuperator was installed at the exhaust of the kiln. The hot air generated by indirect heat exchange was fed to the driers. This resulted in elimination of leco fired hot air generator. The schematic of the modification is highlighted in the figure.
Benefits
The implementation of this project resulted in total stoppage of leco fired hot air generator, leading to a saving of 1300 kgs/day of leco.
Financial Analysis
The annual saving achieved by this project was Rs. 1.52 million. The investment made was Rs. 3.00 million, which was paid back in 24 months.
Benefits of recuperators
! Waste heat from kiln cooler utilised ! Elimination of fuel for drying raw wares Cost benefit analysis Annual Savings Rs. 1.52 millions Investment Rs. 3.00 millions Simple payback 24 months
Ceramics Proposal-8: Installation of Recuperators at the Cooling End of Kiln and Utilising the Hot Air Produced for Drying Raw Wares Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -3.000 -3.000 3.448 41.35% 3.000 2.400 1.520 -0.316 1.836 1.639 0.600 1.520 0.330 1.190 0.949 0.000 1.520 0.545 0.975 0.694 0.000 1.520 0.545 0.975 0.619 0.000 1.520 0.545 0.975 0.553 0.000 1.520 0.545 0.975 0.494 0.000 1.520 0.545 0.975 0.441 0.000 1.520 0.545 0.975 0.394 0.000 1.520 0.545 0.975 0.351 0.000 1.520 0.545 0.975 0.314 1.520 1.520 1.520 1.520 1.520 1.520 1.520 1.520 1.520 1.520 1.52 3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case study No. 9
Utilisation of Exhaust for Kilns Vertical Driers

Background
The Raw material is poured into the mould through the hopper and then pressed in the hydraulic press. The Green tiles from the press are then fed through the vertical drier to further reduce the moisture content. The temperature required in the vertical drier is about 150oC. The low moisture content tiles are then fed through the roller kiln for firing at a temperature of about 1200oC. Generally the exhaust gases from the kiln are at a temperature of 200-250oC.
Previous Status
In one of the ceramic tiles industry, on a continuous basis about 3000 3500 kg/hr at a temperature of 240C was getting vented from the kiln exhaust. The vertical driers located close to the kiln needed hot air at a temperature of 150C for drying.
There was a good potential to utilise this heat from the kiln exhaust and reduce the energy consumption in the vertical drive. These sort of projects are being adopted in similar units. The kiln exhaust line was connected to the suction line of the vertical drier. The schematic of the modification is highlighted in the figure.
Financial Analysis
The overall benefits that achieved by implementing this project was Rs.1.5 Million. The investment required including instrumentation was Rs.5.0 Million, which got paid back in 2 years.
Benefits of recuperators
Reduced 50% of the heat consumption in the vertical drier Waste heat from kiln utilized

Ceramics Proposal-9: Utilisation of Exhaust for Kilns Vertical Driers Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -5.000 -5.000 2.002 23.46% 5.000 4.000 1.500 -0.897 2.397 2.140 1.000 1.500 0.179 1.321 1.053 0.000 1.500 0.538 0.962 0.685 0.000 1.500 0.538 0.962 0.611 0.000 1.500 0.538 0.962 0.546 0.000 1.500 0.538 0.962 0.487 0.000 1.500 0.538 0.962 0.435 0.000 1.500 0.538 0.962 0.388 0.000 1.500 0.538 0.962 0.347 0.000 1.500 0.538 0.962 0.310 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.5 5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case study No. 10
Improve Insulation Practices in Furnace

Background Furnace Walls:
The insulation of furnace walls requires great attention, as the wrong selection of refractory material would result in decreased production quality as well as increased energy consumptions. Presently, all modern glass-melting furnaces are lined with AZS electrocast blocks in glass contact areas and superstructures. The refractory material has the resistance to prevent the corrosion of glass. But the disadvantage is that it possesses high thermal conductivity making it less energy efficient. Therefore, the electrocast material is backed up with a solid high alumina block and insulation to minimize heat loss. The table below shows the heat loss at different parts of the glass tank with and without insulation: HEAT LOSS (W/M2) " " " " " " Without Insulation with Insulation G.T Crown 6900-8000 1800 End wall -do- 3500 Super Structure -do- 1800 Tank Blocks 11600-15100 2800 Bottom 10500-12800 1400
Case study: A 200 tpd container glass manufacturing industry had a melting furnace with its sidewalls at a temperature of 230oC initially. The total surface area at this temperature was about 6 m2. The amount of heat loss with this surface temperature is 12000 kCal/h (@6100 kcal/m2h). The plant team increased the insulation levels, by incorporating AZS refractory bricks supported with high alumina and ceramic fibre layers and reduced the high alumina block = 120oC 950 surface temperature to 120oC (corres. heat loss is 950 kcal/m2h). The diagram of the setup is given in below: Apart from reducing the surface temperature, the plant also achieved significant savings by the reduced contamination of glass by the refractory material. Benefits: (check calculated based on assumed surface area; also check with excel glass proposal in backup)


Ceramics Proposal-10: Improve Insulation Practices in Furnace Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.500 -0.500 2.374 113.16% 0.500 0.400 0.750 0.126 0.624 0.558 0.100 0.750 0.233 0.517 0.412 0.000 0.750 0.269 0.481 0.342 0.000 0.750 0.269 0.481 0.306 0.000 0.750 0.269 0.481 0.273 0.000 0.750 0.269 0.481 0.244 0.000 0.750 0.269 0.481 0.218 0.000 0.750 0.269 0.481 0.194 0.000 0.750 0.269 0.481 0.173 0.000 0.750 0.269 0.481 0.155 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.75 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case study No. 11
Modifications in the Design of Crown to Reduce Radiation Loss and Improved Quality of Glass
Background
The refractories used in crowns should have high alkali vapor resistance, high melting point, low surface variations and high volume stability at operating temperatures. Over the years considerable improvements have been made in the quality of super silica bricks with minimum residual quartz and better surfaces with minimum variation. It is now possible to build crowns with minimum mortar of around 0.3 to 0.5 mm thickness. Low quality bricks are characterized by high roughness on its surface, with increased gaps between bricks of about 1 to 3mm. With increased corrosion due to the alkaline nature of the melt the gaps gets widened resulting huge radiation losses. This is called the Rat hole concept. The radiation loss from such a furnace crown can be as high as 6900-8000 W/m2. Good potential to reduce radiation loss from these furnaces exists by suitably refurbishing the furnace crown. Case study A 50TPD container glass plant had installed for the crown of the furnace, low quality bricks. The low quality brick was least resistive to the alkaline medium and also had gaps between the bricks, resulting in radiation loss from the furnace. Subsequently due to corrosion, the gaps widened resulting in the development of rat holes on the crown. During shutdown, the plant refurbished their crown refractory with super silica bricks. The super silica brick was highly resistive to alkaline medium and had minimum surface variations. This minimized the radiation loss from the furnace considerably. The refurbishment resulted in huge savings in the furnace and the radiation loss was minimized to 1800 W/m2.
Redesigning the crown to minimize contamination of glass

The raw material fed into the glass-melting furnace consists of small quantities of Na2CO3, added as flux to reduce the melting temperature of glass. At high temperatures Na2CO3 vaporizes and condenses on the super structures. This high pH droplet on top of refractory, corrodes the super structure, and would drop back into the melt along with some corroded particles. This would result in quality problems in the batch, and hence would increase the reject percentage.

The latest trend in designing the crown would be to pull up one of the refractory blocks of the furnace, making the high pH alkaline droplet, drop back into the furnace, with out corroding the superstructures. This would maintain the quality of the batch with reduced rejects.
EnCon project
A 100 TPD flat glass manufacturing plant had a conventional crown in the furnace. It was found that the quality of the melt was reduced due to the mixing of impure particles from the superstructure onto the glass melt. The furnace was then redesigned during one of the shutdowns with the crown having one of the blocks pulled up. This made the droplets fall back into the furnace without carrying along with it the particle from the superstructures. There was a considerable reduction in the rejects % in the plant and this attributed to a net energy saving of about 2% in the plant. The refurbishment of the old worn out crown in the plant with newly designed crown amounted to about Rs 75 lakhs.


Ceramics Proposal-11: Modifications in the Design of Crown to Reduce Radiation Loss and Improved Quality of Glass Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -2.000 -2.000 0.439 18.54% 2.000 1.600 0.500 -0.395 0.895 0.799 0.400 0.500 0.036 0.464 0.370 0.000 0.500 0.179 0.321 0.228 0.000 0.500 0.179 0.321 0.204 0.000 0.500 0.179 0.321 0.182 0.000 0.500 0.179 0.321 0.162 0.000 0.500 0.179 0.321 0.145 0.000 0.500 0.179 0.321 0.129 0.000 0.500 0.179 0.321 0.116 0.000 0.500 0.179 0.321 0.103 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.5 2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case study - 12
Redesign the Mesh Belt in Lehr and Avoid Heat Loss

Background
The mesh belt is made of steel wire or stainless steel. When it enters the furnace and is heated the energy consumed by the mesh belt will be twice the amount consumed by the product. Good potential to reduce the energy consumed in the lehr exists by redesigning and reducing the mass of the mesh belt, conveying the products. Case study: A container glass industry with a production through the lehr of 630 kg/h enters at a temperature of 400C into the lehr. The soaking temperature in the lehr is 550C. The total quantity of heat required to heat the product with a specific heat of 0.252 is 23814 kcal/h A mesh belt of weight 20 kg/m and 1.5 m width carries the products at an rpm of 380 mm/ min. The total heat required to heat up the belt is (with Cp = 0.132) 48304 kcal/h, which is twice the value of heat required to heat the glass product. To save this heat, the belt wire length and diameter was minimized, and the weight was reduced, by making the pitch loose. However, care should be taken to check the reduced strength of belt after alterations. Replace old reciprocating compressors with centrifugal compressors having lower specific energy consumption. Compressed air usage in a plant is one of the major electrical energy consumers. Typically, the process air demands in the plant requires compressed air at a pressure of about 3.5 4.0 kg/cm2. The compressed air demand of these process users are met by positive displacement (usually reciprocating) compressors. The specific energy consumption of these types of compressors is about 0.12 kW/cfm. The compressed air requirements with pressure requirements of the order of 4.0 kg/cm2 can be met using centrifugal compressors. These types of compressors would have lower specific energy consumption for the same deliver pressure. The typical specific energy consumption for pressures of about 3.5 kg/cm2 would from 0.09 to 0.10 kW/cfm. Therefore energy saving upto 20% can be easily achieved by the installation of a centrifugal type of compressor. Case study A 550tpd container glass manufacturing unit has a process air demand of about 10000 cfm of compressed air at a pressure of about 3.5 kg/cm2. The plant had four nos. of reciprocating compressors of 2500 cfm capacity each to meet the compressed air demands. The specific energy consumption by the compressors was 0.125 kW/cfm.
The plant installed two nos. of 5000 cfm centrifugal compressors to meet this process demand by replacing the reciprocating compressors. The new specific energy consumption of compressed air is 0.10 kW/cfm. An energy saving of about 20% was achieved by the installation of the centrifugal compressors.
Benefits:
There was a reduction in power consumption in the compressed air system. Apart from this the cooling requirement of the compressed air system also came down by another 50% resulting in additional savings in energy consumption. Cost benefit analysis
Ceramics Proposal-12: Redesign the Mesh Belt in Lehr and Avoid Heat Loss Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -1.500 -1.500 0.854 27.77% 1.500 1.200 0.520 -0.244 0.764 0.682 0.300 0.520 0.079 0.441 0.352 0.000 0.520 0.187 0.333 0.237 0.000 0.520 0.187 0.333 0.212 0.000 0.520 0.187 0.333 0.189 0.000 0.520 0.187 0.333 0.169 0.000 0.520 0.187 0.333 0.151 0.000 0.520 0.187 0.333 0.135 0.000 0.520 0.187 0.333 0.120 0.000 0.520 0.187 0.333 0.107 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.52 1.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Case study No. 13
Replace Pneumatic Conveying with Mechanical Conveying System in the Soda-Ash Conveying System
Background
Soda ash is being added in to the furnace as one of the primary raw material. Soda ash is usually conveyed pneumatically to the furnace from the storage area. Typically, for this purpose dry compressed air at a pressure of 4.0 bar is utilized for the purpose. Pneumatic conveying system consumes nearly about 3 to 4 times more power than a mechanical conveying system. Also, the conveyed air needs to b separated from the conveyed material using a dust separation system, which also consumes additional power. Good potential to reduce power consumption in this area exists by replacing pneumatic systems with mechanical belt conveyor and bucket elevator systems.
Case study
In a float glass plant of capacity 600 TPD, soda ash was conveyed to the furnace pneumatically using compressed air at a pressure of 4.0 bar. There were two nos. of 1200cfm compressors being operated for this purpose. The total power consumption by the compressors was about 150 kW. The total quantity of soda ash conveyed is about 150TPD. The replacement of the pneumatic system was carried out and the energy consumption was reduced by onethird of the energy consumption by the pneumatic conveying system.
Benefits
The overall benefits that achieved by implementing this project was Rs.1.90 Million. The investment required including instrumentation was Rs.3.0 Million, which got paid back in 19 years. Cost benefit analysis Annual Savings Rs. 1.90 millions Investment Rs. 3.00 millions Simple payback 19 months

Ceramics Proposal-13: Replace Pneumatic Conveying with Mechanical Conveying System in the Soda-Ash Conveying System Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -3.000 -3.000 4.824 51.31% 3.000 2.400 1.900 -0.179 2.079 1.857 0.600 1.900 0.466 1.434 1.143 0.000 1.900 0.682 1.218 0.867 0.000 1.900 0.682 1.218 0.774 0.000 1.900 0.682 1.218 0.691 0.000 1.900 0.682 1.218 0.617 0.000 1.900 0.682 1.218 0.551 0.000 1.900 0.682 1.218 0.492 0.000 1.900 0.682 1.218 0.439 0.000 1.900 0.682 1.218 0.392 1.900 1.900 1.900 1.900 1.900 1.900 1.900 1.900 1.900 1.900 1.9 3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Tea Industry
Energy Conservation in Tea Industry
Introduction
Tea Plantation industry has grown from a cottage to large industry with an in front projection of divide and rule culture and today has a significant market share in global scenario India is the largest producer of tea and ranks fourth in terms of total tea exporters in the world. In the Budget 2005-06, tea industrys removal of the AED of Re1 per kg of tea has benefited this industry Indian tea production during Jan-Nov 2004, however, has been 4.5% yearly yield at 773mn kg. Exports have increased by 1.7% to 155.9mn kg during this period and exports rose by 8.3% during Jan-Oct 2004. This evolution has brought an angle change in the production capabilities to meet the increasing demand. The industry to meet the positive gradient demand has adopted Energy Efficient measures to substantially reduce the specific energy consumption. Some of the actual implemented case studies are presented to establish best Energy Efficient practices in this sector.

Case study No. 1
Install Waste Heat Recovery for Heater 1 for Pre-Heating Hot Air Generator Air
Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. These hot air generators are oil / solid fuel fired systems and contributes significantly to the overall energy consumption of the plant. Several energy saving measures have been implemented in the hot air generators in various tea industries. One of the extensively attractive projects is the installation of Waste Heat Recovery for the hot air generator input air.
Present Status
In one of the tea plants in south India, firewood fired hot air generators are utilized to cater to the drying requirements in the unit. The exhaust temperature of the flue gas leaving Heater was measured to be 215oC. The recommended outlet temperatures of flue gas for different fuels are as under: ! Oil ! Coal ! Wood : : : 160oC 140oC 130-140oC

There was a good scope to reduce the outlet temperature of the flue gas by at least 40oC. This can be achieved by installing a Waste Heat Recovery system and recovering heat. As a thumb rule, for a drop of every 22oC in flue gas temperature, there is an increase in thermal efficiency of the Heater by 1%. The heat in the flue gas was utilized to preheat the inlet air to HAG fan to a temperature of 80oC.
Benefits
Heat recovery from the flue gas exhaust of heater has resulted in an annual saving of Rs. 0.1 millions. This required an investment of Rs. 0.15 millions with a simple payback period of 18 months.


Tea Proposal-1: Install Waste Heat Recovery for Heater 1 for Pre-Heating Hot Air Generator Air Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.150 -0.150 0.259 53.85% 0.150 0.120 0.100 -0.007 0.096 0.030 0.100 0.025 0.060 0.000 0.100 0.036 0.046 0.000 0.100 0.036 0.041 0.000 0.100 0.036 0.036 0.000 0.100 0.036 0.032 0.000 0.100 0.036 0.029 0.000 0.100 0.036 0.026 0.000 0.100 0.036 0.023 0.000 0.100 0.036 0.021 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.1 0.15 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.107 0.075 0.064 0.064 0.064 0.064 0.064 0.064 0.064 0.064

Case study No. 2
Insulate the Return Air Duct from Tea Dryer to the Heater
Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. Where thermal energy consumption is in significant proportions, insulation becomes extremely important. The surface temperatures should be maintained as minimum as possible to avoid the heat loss from the surfaces thereby resulting in excess fuel consumption. The supply and the return air duct from the Tea Dryer becomes very critical as far as insulation is concerned.
Present Status
One of the Tea Plants in South India had done well to insulate almost all the hot air ducts and keep the surface temperature within limits to minimize the radiation losses. While all the surface temperatures of air ducts were scanned regularly, the surface temperature of the return air duct from the tea dryer to the Heater was measured to be 70oC while the temperature at the inlet of the Heater was 60oC. There was a drop of 10oC in the duct since it was not adequately insulated.

Tremendous energy saving potential exists in insulating the lines and maintaining surface temperature at 40oC to reduce the radiation losses. The plant team carried out the insulation exercise and also continuously monitored to maintain the surface temperatures within allowable limits.
Benefits
Implementing this proposal has resulted in an annual savings of Rs. 0.218 millions. This called for an investment of Rs. 0.04 millions with an attractive pay back period of 3 months.


Tea Proposal-2: Insulate the Return Air Duct from Tea Dryer to the Heater Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.040 -0.040 0.762 ##### 0.040 0.032 0.218 0.067 0.135 0.008 0.218 0.075 0.114 0.000 0.218 0.078 0.100 0.000 0.218 0.078 0.089 0.000 0.218 0.078 0.079 0.000 0.218 0.078 0.071 0.000 0.218 0.078 0.063 0.000 0.218 0.078 0.056 0.000 0.218 0.078 0.050 0.000 0.218 0.078 0.045 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.218 0.04 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.151 0.143 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140

Case study No. 3
Install a Variable Frequency Drive (VFD) for the Hot Air Generator (Coal Fired) Fan of Heater 2
Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. These hot air generators are oil / solid fuel fired systems and contribute significantly to the overall energy consumption of the plant. Several energy saving measures have been implemented in the hot air generators in various tea industries. One of the areas focused is on the fans installed in the hot air generators.
Present Status
In one of the tea plants, the coal-fired hot air generator supply fan was studied for possible energy savings. The hot air generator fan was damper controlled and open to the extent of 50% The pressure across the damper and at the fan delivery was measured. The pressure loss across the damper was found to be about 46%. The load on the fan is fluctuating in nature depending on temperature in the dryer.
Present Status
Damper control is an energy inefficient practice of capacity control as part of the energy fed to the fan is lost across the damper. Good potential for energy saving exists by avoiding damper control and to meet the varying requirement from the fan. This was achieved by installing a variable frequency drive (VFD) to the hot air generator fan. There were other spin-off benefits achieved by installation of a Variable Frequency Drive: " Air temperature was precisely controlled and monitored " There was no need to frequently stop the dryer due to high / low temperatures. Benefits Installation of a Variable Frequency Drive for the hot air generator (coal fired) supply fan has resulted in an annual savings of Rs. 0.117 millions. This required an investment of Rs. 0.11 millions with an attractive payback period of 12 months.


Tea Proposal-3: Install a Variable Frequency Drive (VFD) for the Hot Air Generator (Coal Fired) Fan of Heater 2 Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.110 0.088 0.117 0.010 -0.110 0.348 82.82% 0.095 0.022 0.117 0.034 0.066 0.000 0.117 0.042 0.053 0.000 0.117 0.042 0.048 0.000 0.117 0.042 0.043 0.000 0.117 0.042 0.038 0.000 0.117 0.042 0.034 0.000 0.117 0.042 0.030 0.000 0.000 0.117 0.117 0.042 0.042 0.027 0.024 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.11 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.110 0.107 0.083 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075

Case study No. 4
Install FRP Blades for Withering Fans

Background
Withering is an important activity as far as drying of the tea leaves is concerned. The withering section is also one of the major energy consumer in the entire plant. The major energy consumer in the withering section is the withering fan. Withering section has multiple axial fans. The number of fans in operation is varied depending on the drying requirement.
Present Status
All the withering fans in one of the tea plants were studied for possible energy savings. The withering section had about 24 axial fans in operation. Out of these, at least 9 fans were in operation at any given point of time. These fans were fitted with aluminum blades.

The present trend is to replace the metal blades with FRP blades. The FRP blades can be moulded to aerofoil shapes, which give higher efficiency as compared to the metal blades. FRP fans are being used for a wide range of applications and are available in sizes as high as 8.23 m diameter also.
Benefits
The annual energy saving achieved by replacing the metal blades with FRP blades was Rs 0.146 millions. This called for an investment of Rs 0.36 millions with a simple pay back period of 30 Months.


Tea Proposal-4: Install FRP Blades for Withering Fans Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.360 -0.360 0.282 32.95% 0.360 0.288 0.146 -0.051 0.176 0.072 0.146 0.027 0.095 0.000 0.146 0.052 0.067 0.000 0.146 0.052 0.059 0.000 0.146 0.052 0.053 0.000 0.146 0.052 0.047 0.000 0.146 0.052 0.042 0.000 0.146 0.052 0.038 0.000 0.146 0.052 0.034 0.000 0.146 0.052 0.030 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.146 0.36 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.197 0.119 0.094 0.094 0.094 0.094 0.094 0.094 0.094 0.094

Case study No. 5
Install Waste Heat Recovery System for One 250 kva Dg Set
Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. These hot air generators are oil / solid fuel fired systems and contribute significantly to the overall energy consumption of the plant. Several energy saving measures have been implemented in the hot air generators in various tea industries. One of the innovative project carried out by one of the tea plants is utilizing the waste heat available in the DG set.
Present Status
In one of the tea plants, DG sets were in continuous operation. The operation of the DG set was essential considering the availability and reliability of the grid supply. As a thumb rule, about one-third of the energy fed to the DG set is converted to useful electrical energy. Approximately, one third of energy fed is lost in jacket water and the balance one-third is lost in the DG set exhaust flue gas. The plant also has requirement of hot air. Hot air generators are used to meet the hot air requirement in the process.
Energy saving Proposal

Good potential for energy saving exists in recovering waste heat generated from the DG set. This hot air from the DG set was utilized to pre-heat the air supplied to the hot air dryer. Air was heated up to 200oC by installing a heat exchanger between the DG exhaust flue gas and the inlet air to the hot air dryer. A blower was also installed to circulate air across the heat exchanger and supply to hot air dryer.
Benefits
The annual saving achieved by installing the waste heat recovery system is Rs. 0.40 millions. The investment required was Rs. 0.5 millions which paid back in 15 months.


Tea Proposal-5: Install Waste Heat Recovery System for One 250 kva Dg Set Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.500 -0.500 1.106 63.82% 0.500 0.400 0.400 0.000 0.357 0.100 0.400 0.108 0.233 0.000 0.400 0.144 0.183 0.000 0.400 0.144 0.163 0.000 0.400 0.144 0.146 0.000 0.400 0.144 0.130 0.000 0.400 0.144 0.116 0.000 0.400 0.144 0.104 0.000 0.400 0.144 0.092 0.000 0.400 0.144 0.083 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.4 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.400 0.292 0.257 0.257 0.257 0.257 0.257 0.257 0.257 0.257

Case study No. 6
Utilise Exhaust from Chamber 3 to Chamber 1 in Fluidized Bed Dryers

Background
Fluidized bed dryers are used in the tea industry for the drying requirement of tea leaves. Several opportunities for effective utilization of the fluidized bed dryer have been envisaged by various plants to achieve maximum effectiveness of the dryer.
Present Status
In a Tea Plant, the operation of fluidized bed dryers was studied. The fluidised bed dryer utilized in this plant had three chambers. The observations made by the plant team regarding the operation of the fluidized bed dryer were as follows: The measured exhaust temperature and relative humidity different chambers were as follows: Chamber No. Chamber No.1 Chamber No.2 Chamber No.3 Exhaust Condition (Temp / RH) 39oC / 70% RH 45oC / 40% RH 70oC / 13% RH
Energy saving Project

The above table shows indicated that there was a potential to recirculate the exhaust heat from Chamber 3 to chamber 1. This has resulted in reduction of fuel consumption at hot air generator. The methods of recirculating the heat. (a) Direct recirculation of heat from chamber 3 to chamber 1. The advantages of this system was: ! Easy to implement ! Minimal investment One of the disadvantages observed by the plant team was the carry over of fine dust from chamber 3 to chamber 1. This would increase the load on the cyclone separator of chamber 1. A trial was carried out by the plant team to study the implications of direct recirculation of heat from chamber 3 to chamber 1. (b) Installation of filter and recirculation to hot air generator: a filter was installed to eliminate the dust and the exhaust is recirculated as the inlet to the hot air generator.
Benefits
The annual saving achieved by recirculating the hot air from chamber 3 to chamber 1 of the hot air dryer was Rs. 0.275 millions. The investment required was Rs.0.1 millions, which paid back in 5 months.

Tea Proposal-6: UTILISE EXHAUST FROM CHAMBER 3 TO CHAMBER 1 IN FLUIDIZED BED DRYERS Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.100 -0.100 0.928 ##### 0.100 0.080 0.275 0.070 0.183 0.020 0.275 0.091 0.146 0.000 0.275 0.099 0.126 0.000 0.275 0.099 0.112 0.000 0.275 0.099 0.100 0.000 0.275 0.099 0.089 0.000 0.275 0.099 0.080 0.000 0.275 0.099 0.071 0.000 0.275 0.099 0.064 0.000 0.275 0.099 0.057 0.275 0.275 0.275 0.275 0.275 0.275 0.275 0.275 0.275 0.275 0.275 0.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.205 0.184 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176

Case study No. 7
Convert Coal Fired Heater to Firewood Fired Heating System

Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. These hot air generators are oil / solid fuel fired systems and contribute significantly to the overall energy consumption of the plant. To reduce the cost of heating, alternate fuels have always been explored by various tea plants. Initially from liquid fuel firing systems, majority of the plants have converted to solid fuel firing system to optimize on the cost of fuel. Plants are still looking at further options to reduce the cost of heating.
Present Status
The study on the Heater in a tea plant indicates that various solid fuels like firewood, leco, imported coal, etc are being used. The consumption of these solid fuels varies based on the availability of the fuel. The coal and Leco are found to have very high percentage of fines. The Heater grates were not designed to take fines, which was resulting in high-unburnt loss in the ash. This was resulting in lower thermal efficiencies of the Heater. In spite of the calorific value of the firewood being lower at 3800 kcal / kg vis--vis 5000 kcal / kg for imported coal and 6000 kcal / kg for Leco, the cost of heating with firewood was much cheaper as indicated below: The table shows the cost comparison of various fuels used in the plant. Fuel Cost of Fuel Rs / Kg 1.69 3.80 3.41 Calorific Value Kcal / kg 3800 6000 5000 Heater efficiency % 77% 70% 70% Cost Rs / MM Kcal 578 904 974
Firewood Leco Imported coal

Various solid fuels like fire wood, leco, imported coal etc were used in heater based on the availability of fuel. The heater efficiency with leco & imported coal firing is less compared to fire wood firing. The cost of heating with various solid fuels was compared. The comparison indicated that: ! Cost of using Leco = 1.56 times of firewood ! Cost of using Imported Coal = 1.68 times of firewood
Resorting to wood firing will not result in energy savings. However, this gives tremendous advantage in terms of the cost of energy. Coal fired heater system was converted to 100% fire wood system.
Financial Analysis
Avoiding the usage of Leco and firewood and adopting firewood has resulted in an annual saving of Rs. 5.45 Lakhs. This did not call for any major requirement.

Food Processing
Energy Conservation in Food Processing
Introduction
The Food Processing Industry sector in India is one of the largest sector in terms of production, consumption, export and growth prospects. Government of India has accorded it a high priority, with a number of fiscal reliefs and incentives, to encourage commercialization and value addition. Important sub sectors in food processing industries are:- Fish-processing, Milk Processing, Meat & Poultry Processing, Packaged/Convenience Foods and Grain Processing etc. As per a recent study on the food processing sector, the turnover of the total food market is approximately Rs.250,000 crores (US $ 69.4 billion) out of which valueadded food products comprise Rs.80,000 crores (US $ 22.2 billion) Size of the semi-processed and ready to eat packaged food industry is over Rs. 4000 crores (US $ 1 billion) and is growing at over 20%. The actual implemented case studies in this sector encompass some of the Energy saving potential in this sector.

Case study No. 1
Install Carbon Molecular Sieve System for Generating Nitrogen from Compressed Air and Stop use of LPG
Present Status
A popular food processing plant utilizes nitrogen for its different packing and other needs. The process details are as follows:
! Nitrogen purity required for use is 99.5 % (Min.) ! LPG is used to produce nitrogen from air by consuming oxygen for its
burning.
! LPG consumption is to the tune of 45000 Kg/Annum. ! Around 10 M3 of nitrogen is produced per Kg of LPG. ! LPG being expensive drastically increases the cost of Nitrogen, produced
apart from other problems like safety hazards in handling and storage.

Installation of carbon Molecular Sieves (CMS) system to produce Nitrogen from compressed air is a good option. CMS is now a proven technology with minimum maintenance and high level of automation. Nitrogen of purity as high as 99.9 % can be produced by a simple system.
Principle of Operation
This system works on the simple principle of preferential adsorption of oxygen (and moisture to some extent) in air on the carbon molecular sieves leaving nitrogen free for use. These are high efficiency towers with very less purge losses and no safety hazards. It is also proposed to install ultra filters before the final nitrogen receiver to separate any fine carbon or other impurities in the nitrogen.
Implementation Methodology:
Installing CMS shall altogether stop the use of LPG, which is otherwise a safety hazard also apart from being very costly. There is minimum extra running costs apart from the compressors, which are anyway running now also.
Benefits
The annul benefits from the system was in the tune of Rs 1.35 millions. This called for an investment of Rs 0.10 millions on the new CMS system and had a simple payback period of 9 months.

Food Processing Proposal-1:Install Carbon Molecular Sieve System for Generating Nitrogen from Compressed Air and Stop use of LPG Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -1.000 -1.000 4.205 102.84% 1.000 0.800 1.350 0.197 1.029 0.200 1.350 0.413 0.747 0.000 1.350 0.484 0.616 0.000 1.350 0.484 0.550 0.000 1.350 0.484 0.491 0.000 1.350 0.484 0.439 0.000 1.350 0.484 0.392 0.000 1.350 0.484 0.350 0.000 1.350 0.484 0.312 0.000 1.350 0.484 0.866 0.279 1.350 1.350 1.350 1.350 1.350 1.350 1.350 1.350 1.350 1.350 1.35 1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.153 0.937 0.866 0.866 0.866 0.866 0.866 0.866 0.866

Case sftudy No. 2
Replace Compressed Air with Blower Air for Wafers Pushing at Wafers Section
Background
Compressed air has been extensively used in various industries for a variety of applications. With the increased awareness on cost of compressed air, various plants are taking up measures to avoid / substitute the use of compressed air. One of the options evaluated by several units is to substitute compressed air with blower air.
Present status
In the wafers section of a plant, compressed air was used for pushing the wafer from the baking plate. Compressed air was drawn through two points (2 mm diameter) on each side of the LPG fired wafer baking plates. Compressed air for this application was earlier utilized at a pressure of 6.5 kg/cm2. The estimated compressed air consumption was about 10 cfm.

Typically, for these applications, volume of air is the criteria than the pressure. For these applications, air at a pressure of about 1.0 kg/cm2 will be sufficient. For these applications positive displacement blowers developing a pressure of 1 kg/cm2 can be utilised. The comparison of specific power consumption between compressor and blower is as shown below: " Specific power with compressed air " Specific power with blower air = = 0.18 kW/cfm 0.05 kW/cfm
There was a good potential to replace compressed air with blower air for this application and save energy.
Implementation methodology:
Based on this observation, the plant team carried out a trial in the existing system by gradually reducing the pressure and thus employ a positive displacement blower for the operation
Benefits
The annual energy savings realized by substituting compressed air with blower air was Rs.0.34 lakhs. This required an investment (for blower) of Rs. 0.02 millions and had a simple payback period of 11 months.

Food Processing Proposal-2: Replace Compressed Air with Blower Air for Wafers Pushing at Wafers Section Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.020 -0.020 1.218 1117.01% 0.020 0.016 0.340 0.116 0.200 0.004 0.340 0.121 0.175 0.000 0.340 0.122 0.155 0.000 0.340 0.122 0.139 0.000 0.340 0.122 0.124 0.000 0.340 0.122 0.110 0.000 0.340 0.122 0.099 0.000 0.340 0.122 0.088 0.000 0.340 0.122 0.079 0.000 0.340 0.122 0.218 0.070 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.340 0.34 0.02 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.224 0.219 0.218 0.218 0.218 0.218 0.218 0.218 0.218

Case study No 3
Optimise Cooling Water Supply to the Syrup Cooling Plates & Vacuum Pumps
Present status
The performance of the cooling water system in confectionery section of a chocolate manufacturing plant was observed. The following are the details " Cooling water from cold well was catering to four syrup cooling plates and four vacuum pumps by gravity. During normal operating condition two syrup cooling plates and two vacuum pumps were utilized. " The hot return water from process was collected in a common hot water tank. A centrifugal pump was used to pump the hot water from the tank to the top of the cooling tower. This was operated based on level of hot water in the tank. The power consumption of the pump was 4.9 kW. " It was observed that the cooling water also flows through the standby syrup cooling plates and pumps. This led to additional power consumption in the cooling water pump since the idle operation was for longer duration of time.

There is a good potential to save energy by avoiding the cooling water flow through the idle equipment and reduce the operating time of cooling water pump. The plant team avoided the cooling water flow through the standby syrup cooling plates by suitably controlling the valves. The idle flow across the vaccum pumps were also reduced by continuous control. This has resulted in significant reduction in ON time of the cooling water pump.
Benefits
The annual energy saving potential is Rs 0.031 millions. This does not call for any major investment.
Case study No. 4
Utilise Exhaust Heat to Preheat Combustion Air in Biscuit Baking Oven

Present Status
" Two lines of biscuit baking oven were in operation in the biscuit section & 5 No.s of LDO fired burners were installed for each of these two ovens. " Temperature settings of the zones were monitored continuously and suitable interlocks were given to ensure no over-heating happening of zones. " The flue gas from the burner was directly let off into the stack. The exhaust flue gas temperature was measured during the energy audit and was observed to be varying between 230oC 300oC for various zones. " Huge quantity of useful heat, which is being let off to the atmosphere, without effective utilization.

As a thumb rule, for every 22C drop in the flue gas temperature, there will be an improvement in operating efficiency of at least 1%. The plant team realized the tremendous energy saving potential to install recuperators / air-preheaters to recover heat from the furnace flue gas and preheat combustion air. This has result in significant fuel savings. The plant team installed an air preheater with LDO exhaust for combustion air supply. This required the change of existing burner and blower assembly, i.e., separate blower is to be installed to handle air at higher temperature than ambient.
Benefits
The annual energy saving realized by implementing this is Rs. 0.03 millions for both the ovens. This called for an investment of Rs. 0.04 millions and had a simple payback period of 15 months.

Annual Savings Rs.0.03 millions Investment Rs.0.04 millions Simple payback 15 months

food processing Proposal-4: Utilize Exhaust heat to preheat combustion air in biscut baking oven Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.040 -0.040 0.081 60.12% 0.040 0.032 0.030 -0.001 0.027 0.008 0.030 0.008 0.018 0.000 0.030 0.011 0.014 0.000 0.030 0.011 0.012 0.000 0.030 0.011 0.011 0.000 0.030 0.011 0.010 0.000 0.030 0.011 0.009 0.000 0.030 0.011 0.008 0.000 0.030 0.011 0.007 0.000 0.030 0.011 0.019 0.006 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.030 0.03 0.04 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.031 0.022 0.019 0.019 0.019 0.019 0.019 0.019 0.019
Case study 5
Utilise the Heat from A/C Condenser Fans for Hot Room in Confectionery Section
Present Status
Confectionery section in one of the food processing industries manufactures candies and toffees. After packing these products, it had to be heated to a temperature of 450C to maintain brittleness. Hence all the packed products are stacked in a hot room which was maintained at temperature in the range of 45 500C. Steam was used to maintain the temperature in hot room. Heat required for a maximum quantity of two tons of product load was estimated to be around 15000 kCal. Hot room was available in Line 1 of the manufacturing line. Entire facility of confectionery packing-Line 1 was air conditioned with 2 x 7.5 TR chillers to maintain a temperature of 250C inside the room. Condenser fans of these chillers were installed outside the room. The temperature of hot air from these fans was measured to be about 480C.

Considering even a partial load of 7.5 TR inside the room, the heat available in these condenser fans would be around 22500 kCal/Hr. Hence the heat quantity available from these condenser fans is sufficient to maintain the temperature in hot room. Good potential exists to utilize this waste heat from condenser fans and avoid using steam for hot room application. The existing set up of steam lines were still retained as a stand-by.
Implementation Methodology:
The plant team installed condenser fans inside the building facing the hot room such that heat from condenser fans passes through the room. The waste heat from the condenser fans was sufficient for this application. An exhaust fan was also installed to take out the air from hot room. This was operated only when a desired temperature (45-500C) is attained. Otherwise door openings was sufficient to take out the air. Existing steam coils were kept as it is and was used as stand-by for higher load requirement.
Benefits
Implementing this proposal has resulted in an annual energy saving of Rs.0.3 millions. This called for an investment of Rs. 0.2 millions and had a simple payback period of 7 months time.


Food Processing Proposal-5: Utilise the Heat from A/C Condenser Fans for Hot Room in Confectionery Section Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 0.950 113.16% 0.200 0.160 0.300 0.050 0.223 0.040 0.300 0.093 0.165 0.000 0.300 0.108 0.137 0.000 0.300 0.108 0.122 0.000 0.300 0.108 0.109 0.000 0.300 0.108 0.097 0.000 0.300 0.108 0.087 0.000 0.300 0.108 0.078 0.000 0.300 0.108 0.069 0.000 0.300 0.108 0.192 0.062 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.3 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.250 0.207 0.192 0.192 0.192 0.192 0.192 0.192 0.192
Case study No. 6
Replace / Rectify Burners of Ovens in Biscuit Plant

Present Status
One of the biscuit manufacturing units utilized two ovens of biscuit plant. These ovens had LDO fired burners. Combustion efficiency tests were carried out to monitor the excess air supply to the burners. The flue gas when analyzed indicated excessive levels of oxygen content. This is an indication of higher excess air supplied to the burners thereby resulting in higher heat loss from the stack. The measured oxygen levels in the burners were varying between 13.4 to 13.8%. This corresponds to an excess air level of 192%.

Typically, for oil fired furnaces the recommended value of oxygen in the flue gas is in the range of 3 4%, corresponding to an optimum excess air level of 25 30%. Detailed observations indicated that while the flue gas had higher oxygen levels, the leves of CO was also measured to be higher. One of the major reasons for this high oxygen and high CO scenario would be defective burners in operation. These burners needed to be overhauled first and still, if the CO level does not drop, they had to be replaced. The plant team tried to overhaul all the burners to control the air. However, the CO levels could not be brought down while maintaining a lower oxygen level. Hence, the burners were replaced in consultation with the supplier. After replacing the burners, the plant team was able to maintain the oxygen levels in the range of 3-4% with CO less than 100 ppm.
Benefits
Implementation of this proposal resulted in an annual energy savings of Rs 1.36 millions. Investment required for replacement of the burners was Rs 0.35 millions, which paid back in 3 months time.


Food Processing Proposal-6: Replace / Rectify Burners of Ovens in Biscuit Plant Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.350 -0.350 4.687 271.56% 0.350 0.280 1.360 0.387 0.868 0.070 1.360 0.463 0.715 0.000 1.360 0.488 0.621 0.000 1.360 0.488 0.554 0.000 1.360 0.488 0.495 0.000 1.360 0.488 0.442 0.000 1.360 0.488 0.394 0.000 1.360 0.488 0.352 0.000 1.360 0.488 0.314 0.000 1.360 0.488 0.872 0.281 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.360 1.36 0.35 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.973 0.897 0.872 0.872 0.872 0.872 0.872 0.872 0.872
Case study No. 7
Install New High Efficiency Fan (or) Install Next Lower Size Impeller for the Intake Air Fan at Wheat Godown
Present status
Fans are a smaller load in the food processing industry. However, while looking at energy saving opportunities, every single equipment is now analyzed for its performance and suitable measures are taken to achieve optimum operational efficiency. The intake section of the bucket elevator in the wheat godown of one of the food processing industry had a vibratory separator for separation of unwanted fines. This separator was provided with a cyclone separator and a fan for the fines separation. The plant team studied this fan in detail for possible energy savings. The following observations were made on the fan: ! The fan was operating with suction damper control. This indicated the excess capacity/ static head of the fan. ! The measured pressure drop across the damper was 124 mm WC, which was about 39% of the total pressure developed by the fan. ! The actual head required by the fan was only 200 mm WC. This confirms that the fan had excess design head. ! The operation of a fan with damper throttling is an energy inefficient method of capacity control, as a part of the energy supplied to the fan is lost across the damper. ! The measured airflow of the fan at this static pressure is 5400 m3/h. The estimated operating efficiency of fan, for these parameters is only 60%. ! This is very low, as the latest fans having backward curved blade impellers, have an operating efficiency of as high as 75%.

There is a good potential to optimise the energy consumption of the intake air fan by replacing with a higher efficiency fan. The plant team had two options and have evaluated the economics of both the options.
Option-1
Replacing the existing intake air fan at the wheat godown, with a new higher efficiency fan.
Option-2
Installing the next lower size impeller for the intake air fan and operating the fan with full damper opening.

Benefits
Option-1 The annual energy savings potential was Rs.19,800/-. This required an investment (for the new fan and motor) of Rs.30,000/-, and had a simple payback period of 19 months. Option-2 The annual energy savings potential was Rs.11,900/-. This required an investment (for the new impeller) of Rs.7,500/-, and had a simple payback period of 8 months. The plant team went ahead with option 1, replacing the existing fan with a new fan having higher operating efficiency.

Food Processing Proposal-7:Install New High Efficiency Fan (or) Install Next Lower Size Impeller for the Intake Air Fan at Wheat Godown Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.051 53.35% 0.030 0.024 0.020 -0.002 0.019 0.006 0.020 0.005 0.012 0.000 0.020 0.007 0.009 0.000 0.020 0.007 0.008 0.000 0.020 0.007 0.007 0.000 0.020 0.007 0.006 0.000 0.020 0.007 0.006 0.000 0.020 0.007 0.005 0.000 0.020 0.007 0.005 0.000 0.020 0.007 0.004 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.0198 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.021 0.015 0.013 0.013 0.013 0.013 0.013 0.013 0.013 0.013
Paper
Energy Conservation in Paper
Introduction
Paper has a long history, beginning with the ancient Egyptians and continuing to the present day. After hand-made methods dominated for thousands of years, paper production became industrialised during the 19th century. Originally intended purely for writing and printing purposes, a wide variety of paper grades and uses are now available to the consumer. Paper is a natural product; manufactured from a natural and renewable raw material, wood. The advantage of paper is that it is biodegradable and recyclable. In this way, the paper industry is sustainable, from the forest through the production of paper, to the use and final recovery of the product. Its almost impossible to imagine a life wit out paper. In fact, paper is such a versatile h medium, its uses are only limited to the imagination. The Indian pulp and paper industry is over a hundred years old. It has grown in installed capacity from a paltry 0.15 million tons in the early fifties to the present level of 4.65 million tons (a growth of more than 30 times). The Indian paper industry is a mix of large integrated plants (> 25000 tons per annum capacity), medium size plants and small size paper plants based on waste paper. The capacities of the mills range from 500 tons/annum to 2.00 lakh tons/ annum. There are about 515 registered paper mills in India, while the numbers of mill, which are in actual operation, are about 380. The break-up of the mills, capacity-wise is as follows: ! Small (up to 10000 TPA) : 285 numbers and 1.90 million tons ! Medium (< 20000 TPA) : 65 numbers and 1.00 million tons ! Integrated (> 20000 TPA): 30 numbers and 2.50 million tons These mills produce various types of paper products, such as, writing & printing paper, kraft, paperboard, newsprint etc. In this section, several actual implemented case studies in pulp & paper industry is highlighted.

Case study -1
Install Variable Frequency Drive (VFD) for Dump Chest and Machine Chest Pumps
Background
Typically in paper industry the process pumps have excess capacity / head to take meet the maximum requirement. During normal operating conditions, the excess capacity leads to Recirculation of the pulp. The Recirculation is an inefficient practice. The power consumption of the pump remains constant irrespective of the process requirement. This leads to increase in power consumption in the centrifugal pumps. In paper plants, for few cases some minimum Recirculation is required to ensure the process requirement. The Recirculation quantity can be reduced and kept at very minimal level by installing variable frequency drives for the centrifugal pumps. This will result in significant energy saving.
Present Status
Level Box
Dump Chest
Machine Chest
In one of the small scale paper plant, the dump chest pump and the machine chest pumps were operating with Recirculation control. A centrifugal pump of following specifications is in operation for pumping the pulp from the dump chest to the machine chest. ! Capacity ! Head ! Impeller size 126 m3/hr 30 m 10.5
From the machine chest pulp is transferred to the level box using an another centrifugal pump of following specifications. ! Capacity ! Head ! Impeller size 126 m3/hr 30 m 10
There is a continuous overflow of pulp from the machine chest to dump chest and also from the level box to the machine chest. The quantity of overflow varies depending upon paper gsm and pulp requirement in the paper machine. In case of transferring pulp from machine chest to level box, there is need to maintain a minimum recirculation to ensure the required pulp level in the level box. The minimum quantity of overflow can be in the range of 10-15 % of the quantity of pulp pumped by the pump. In the existing system the excess quantity of overflow of pulp from the level box to the machine chest and from the machine chest to the dump chest is a clear indication of the excess capacity available in the centrifugal pumps. Pumping of excess quantity of pulp results in excess power consumption in the pumps.

Variable frequency drive was installed for both dump chest and machine chest pumps. The speed of the pumps was reduced gradually to maintain a minimum Recirculation of about 10-15%.
Benefits
Installation of variable frequency drive has resulted in reduction in Recirculation quantity. The net power reduction in both the pumps is about 7.0 kW.
Financial analysis
Annual energy saving of Rs 0.24 millions was achieved. This required an investment of Rs 0.25 millions for installing variable frequency drive, which had a simple payback period of 12 Months.
This has very high replication potential in majority of medium and small-scale paper mills. This could be implemented in atleast 100 paper mills in India.


Paper Proposal-1: Install Variable Frequency Drive (VFD) for Dump Chest and Machine Chest Pumps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.250 -0.250 0.698 75.44% 0.250 0.200 0.240 0.014 0.201 0.050 0.240 0.068 0.137 0.000 0.240 0.086 0.110 0.000 0.240 0.086 0.098 0.000 0.240 0.086 0.087 0.000 0.240 0.086 0.078 0.000 0.240 0.086 0.070 0.000 0.240 0.086 0.062 0.000 0.240 0.086 0.055 0.000 0.240 0.086 0.050 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.24 0.25 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.226 0.172 0.154 0.154 0.154 0.154 0.154 0.154 0.154 0.154
Case study - 2
Install Variable Frequency Drive for Primary Centri Cleaner Pump (Fan Pump)
Background
In paper industry additional margin is kept in capacity / head of the pump to meet the maximum requirement. During the normal operating condition, to meet the lower process requirement, the control valve at the outlet of the pump is throttled. The throttling is varied to meet the variation in process requirement. Valve throttling is an inefficient mode of capacity control. This leads to pressure loss across the control valve and hence energy loss. This valve control can be eliminated and the pressure loss across the control valve can be avoided by installing the variable frequency drives. The speed of the pump can be varied to meet the process requirement. This will result in significant energy saving.
Present status
In one of the medium size paper plants, the primary centri cleaner pump is operated with valve control.
50 60 % Open
White Wash Tank
(66.3 kW) H - 30m Q - 504 m3/hr MR - 75 HP
To secondary Certricleaner tank
A centrifugal pump of following specifications is in operation for pumping the pulp from the white wash tank to the primary centri cleaner. ! Capacity ! Head ! Motor rating 504 m3/hr 30 m 75 HP
In the paper plant, papers of different sizes ranging from 100 gsm to 180 gsm are produced. During the lower gsm paper production the consistency of pulp requirement is low and hence the quantity of pulp pumped by the fan pump is more.

On the other hand, during the higher gsm paper production the consistency requirement is very high, hence the quantity of pulp pumped by the fan pump is low. The variation in paper size leads to a huge variation in quantity of pulp to be pumped by the fan pump. Presently, the required quantity of pulp is supplied to the paper machine by controlling a control valve provided at the outlet of the fan pump and also controlling control valve provided at the inlet of the individual cyclones in the centri cleaner. The control valve position is varied depending upon the paper size and production rate. The control valve position at the outlet of the fan pump varies in the range of 5060% open. This leads to significant pressure loss across the control valve and hence energy loss. Energy saving project Variable frequency drive was installed for the fan pump. The speed of the fan pump is varied to match with the pulp requirement depending of the paper size. The control valve throttling at the outlet of the pump was avoided and also the control valve opening at the inlet of the cyclones of the centri cleaner was increased.
Benefits
Installation of variable frequency drive for the fan pump has resulted in reduction in pressure loss across the control valve. This has resulted in the average electrical energy saving of about 17 kW.
Financial analysis
Annual energy saving of Rs 0.62 millions was achieved. This required an investment of Rs 0.30 lakhs for installing variable frequency drive, which had a simple payback period of 6 Months.
This has very high replication potential in majority of medium and small-scale paper mills. This could be implemented in atleast 100 paper mills in India.


Paper Proposal-2: Install Variable Frequency Drive for Primary Centri Cleaner Pump (Fan Pump) Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.300 -0.300 2.040 ##### 0.300 0.240 0.620 0.136 0.432 0.060 0.620 0.201 0.334 0.000 0.620 0.222 0.283 0.000 0.620 0.222 0.253 0.000 0.620 0.222 0.226 0.000 0.620 0.222 0.201 0.000 0.620 0.222 0.180 0.000 0.620 0.222 0.161 0.000 0.620 0.222 0.143 0.000 0.620 0.222 0.128 0.620 0.620 0.620 0.620 0.620 0.620 0.620 0.620 0.620 0.620 0.62 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.484 0.419 0.398 0.398 0.398 0.398 0.398 0.398 0.398 0.398

Case study - 3
Install Energy Monitoring System for Pulper

Back Ground
In paper industry, pulper is one of the major energy consumers. The operation of the pulper is normally monitored manually. The batch time and completion of the pulping process determined based on experience. Various factors, such as loading of the pulper, identification of completion of the pulping process determines the batch time and the total energy consumption of the pulper. This leads to significant variation in specific energy consumption of the pulper. Few batches the specific energy consumption is very low and in majority of batches the specific energy consumption is very high. This clearly indicates that there is a significant potential to minimize energy consumption and maintain specific energy consumption at lower level. This could be achieved by continuous monitoring of the pulper power consumption and setting target power consumption / batch. The target power consumption /batch is fixed based on the consistency and the oSR. A display is provided visible to the operators. This facilitates the operator to take necessary steps to complete the batch within the specified target power consumption.
Present status
In one of the medium size paper plant a pulper of capacity 8 m3/batch is in continuous operation and the other one is kept as standby. Presently the operation of the pulper is monitored manually. The batch time and completion of pulping process determined based on experience. The variation in power consumption / batch is in the order of 30-40%. This significant variation is mainly due to human intervention in the operation of the pulper.

An Energy Monitoring system was installed and the following parameters were monitored. ! Power consumption - Units / batch for the pulper ! Status monitoring - Monitor the status (number of batches and batch time) of the pulper. ! Consistency of the pulp. The consistency is always maintained more than 3.5% ! SR was measured over a period of time in a batch. Based on this data batch time was fixed, so that the pulp from the pulper could achieve the pumpable state.
Based on the above two data the target, units / batch was fixed. A LED display with following information was installed for the pulper. ! Target Batch Time ! Target Batch Power consumption Both, the batch time and batch power display, would be of Count-down type and as the batch progresses, the values will keep reducing. The energy monitoring system provides information to the operators to take proactive steps to complete the batch within the target power consumption. Based on the available online information, necessary steps such as improving the loading of pulper, avoiding the operation of pulper under loaded can be taken by the operators.
Benefits
The batch time of the pulping process is significantly reduced. This has resulted in significant reduction in specific energy consumption of the pulper. In an average, the specific energy consumption of the pulper is reduced by 5%.
Financial analysis
Annual energy saving of Rs 0.2 millions was achieved. This required an investment of Rs 0.1 millions for installing energy monitoring system for two pulpers with a LED display, which had paid back in 6 Months.


Paper Proposal-3: Install Energy Monitoring System for Pulper Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.100 -0.100 0.656 ##### 0.100 0.080 0.200 0.043 0.140 0.020 0.200 0.065 0.108 0.000 0.200 0.072 0.091 0.000 0.200 0.072 0.082 0.000 0.200 0.072 0.073 0.000 0.200 0.072 0.065 0.000 0.200 0.072 0.058 0.000 0.200 0.072 0.052 0.000 0.200 0.072 0.046 0.000 0.200 0.072 0.041 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.2 0.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.157 0.135 0.128 0.128 0.128 0.128 0.128 0.128 0.128 0.128
Case study - 4
Install Dual Speed Motors for Couch Pit and Press Pit Agitators
Back Ground
The agitators in both couch pit and press pit are in continuous operation. The couch pit and press pit agitators are designed for load during paper breaks. But during the normal operating condition, only the trims from the paper machine fall into the pit. Hence the load on the agitators is very low during normal operation. The speed of the agitator remains constant irrespective of the load on the agitator. This leads to increased power consumption. There is a good potential to save energy by optimising the speed of the agitator during normal operating condition. This can be achieved by installing dual speed motor for the agitator. The agitator can be operated at lower speed during normal operation and whenever there is a paper breakage, the agitator could be operated at maximum speed. This results in significant energy saving.
Present status
In one of the medium size paper plant for a paper machine of capacity 80 tons/day, both couch pit and press pit agitators are in continuous operation. During normal operating condition, only trims are falling into the pit. The agitators are running at constant speed irrespective of the operating condition.

A dual speed motor is installed for couch pit and press pit agitator. During normal operating condition, the agitator is operated at lower speed and whenever there is a paper breakage, the load on the agitator increases. Based on increase in load, the speed of the motor is increased to meet the requirement.
Benefits
Majority of time, the agitator is operated at lower speed. This has resulted in 40-45% reduction in power consumption.
Financial analysis
Annual energy saving of Rs 0.25 millions was achieved by installing dual speed motor for the agitator. This required investment of Rs 0.12 millions, which had a simple payback period of 6 Months.


Paper Proposal-4: Install Dual Speed Motors for Couch Pit and Press Pit Agitators Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.120 0.096 0.250 0.055 -0.120 0.823 152.64% 0.174 0.024 0.250 0.081 0.135 0.000 0.250 0.090 0.114 0.000 0.250 0.090 0.102 0.000 0.250 0.090 0.091 0.000 0.250 0.090 0.081 0.000 0.250 0.090 0.073 0.000 0.250 0.090 0.065 0.000 0.250 0.090 0.058 0.000 0.250 0.090 0.052 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.25 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.120 0.195 0.169 0.160 0.160 0.160 0.160 0.160 0.160 0.160 0.160
Case study - 5
Install Thermo Compressor and Recover Flash Steam from Flash Vessel
Background
In paper plant steam is utilised in the paper machine at an operating pressure of 2.5 3.0 kg/cm2. The condensate from the paper machine is collected in a condensate tank. From the condensate tank, the condensate is pumped back to boiler feed water tank. When high-pressure condensate is exposed to atmospheric pressure, a part of condensate flashes into steam. The flash steam has significant heat energy. When flash steam is let out to atmosphere, the heat energy is lost. The flash steam can be recovered using thermo compressor. The thermo compressor operates based on venture principle. The thermo compressor consists of a nozzle, throat and a diffuser. This requires high pressure steam as motive steam. When high pressure steam is passed through the nozzle, it creates a suction effect. The throat is connected to the low pressure steam. The low pressure steam is sucked into the thermo compressor and mixes with high pressure steam. When the steam passes through the diffuser, the operating pressure increased to an intermediate pressure. The intermediate pressure steam can again be utilised for the process. The recovery of flash steam from the condensate tank reduces the overall steam consumption in the plant and there by fuel consumption in the boiler.
Present Status
In one of the medium size paper plant, steam is generated at an operating pressure of 10.5 kg/cm2 in the boiler. The steam pressure is reduced to 3.0 kg/cm2 using a pressure reducing valve and used for paper drying in the paper machine. The condensate at a pressure of 2-3 kg/cm2 from the paper machine is collected in a condensate tank, which is exposed to atmosphere. This results in flashing of condensate into flash steam. Flashing of steam to atmosphere results in heat loss. The flash steam is as costly as the cost of the live steam. Hence there is an immense need to recover the flash steam. The total quantity of flash steam loss is in the range of 225-250 kg/hr.

A thermo compressor was installed to recover the flash steam from the condensate tank. The discharge steam from the thermo compressor is again injected in to the main header at a pressure of 3.0 kg/cm2. The layout of the system is shown in the figure.
10 kg/cm2 0.1 kg/cm2
Flash Vessel
2.5 kg/cm2
Condensate Tanks
2.5 kg/cm2
Benefits
The flash steam from the tank is fully recovered. The recovered quantity of flash steam is in the range of about 0.5 ton/hr.
Financial analysis
Annual energy saving of Rs 0.66 millions was achieved. This required an investment of Rs 0.06 millions for the Thermo compressor, which had a simple payback period of 11 Months.

Paper Proposal-5: Install Thermo Compressor and Recover Flash Steam from Flash Vessel Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.600 0.480 0.660 0.065 -0.600 1.979 85.39% 0.532 0.120 0.660 0.194 0.372 0.000 0.660 0.237 0.301 0.000 0.660 0.237 0.269 0.000 0.660 0.237 0.240 0.000 0.660 0.237 0.214 0.000 0.660 0.237 0.191 0.000 0.660 0.237 0.171 0.000 0.660 0.237 0.153 0.000 0.660 0.237 0.136 0.660 0.660 0.660 0.660 0.660 0.660 0.660 0.660 0.660 0.660 0.66 0.6 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.600 0.595 0.466 0.423 0.423 0.423 0.423 0.423 0.423 0.423 0.423

Case study - 6
Segregate Ring Dilution and Vat Dilution in Bleaching Section

Back Ground
Common pump is utilised for water supply to both ring dilution and vat dilution requirements in the bleaching section. For the vat dilution, the quantity of water requirement varies depending upon the process. The control valve at the inlet of the filter is controlled to match with the requirement. Valve control is an inefficient mode of capacity control. Valve control leads to pressure loss across the control valve and hence energy loss. This can be avoided by segregating the ring dilution and vat dilution requirement and installing variable frequency drive for the vat dilution pump. The vat dilution pump speed can be controlled by VFD with feed back from the discharge pressure. Whenever the requirement reduces, for the vat dilution, the back pressure increases to the pump increases. The increase in header pressure is sensed by the pressure transducer and the signal is given to the variable frequency drive. The variable frequency drive reduces the speed of the pump to maintain the set operating pressure. This results in significant energy saving.
Present status
In one of the medium size paper plant, in the bleaching section a circulation pump of following specifications is in operation. The circulation pump caters to the requirements of both vat dilution and ring dilution. The control valve at the inlet of both sections is severely throttled. The control valves are only 50% open. In addition, the vat dilution requirement, varies depending upon the process. The control valves are throttled to meet the requirement. The valve throttling leads to pressure loss and hence energy loss. The existing system is shown in diagram.
0.5-1.5 Kg/cm2
Filter
50
Valve position varies as per To Ring Dilution
Seal Tank 50
Circulation Pump 375 m3/h, 25 m WC 60 HP

Ring dilution and vat dilution supply is segregated and dedicated pumps are installed for both the requirements. Variable frequency drive was installed with feed back control for the vat dilution supply. The valves immediately at the inlet of the users are kept fully opened.
Financial analysis
Annual energy saving of Rs 0.15 millions was achieved. This required an investment of Rs 0.30 millions for installing dedicated pumps and VFD for vat dilution pump. This had a simple payback period of 24 months.

Paper Proposal-6: Segregate Ring Dilution and Vat Dilution in Bleaching Section Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.300 0.240 0.150 -0.032 -0.300 0.338 40.81% 0.163 0.060 0.150 0.032 0.094 0.000 0.150 0.054 0.068 0.000 0.150 0.054 0.061 0.000 0.150 0.054 0.055 0.000 0.150 0.054 0.049 0.000 0.150 0.054 0.044 0.000 0.150 0.054 0.039 0.000 0.150 0.054 0.035 0.000 0.150 0.054 0.031 0.150 0.150 0.150 0.150 0.150 0.150 0.150 0.150 0.150 0.150 0.15 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.300 0.182 0.118 0.096 0.096 0.096 0.096 0.096 0.096 0.096 0.096

Case study - 7
Install Variable Frequency Drive for ID Fan in Boiler

Back ground
In a paper plant the steam consumption varies depending upon the process requirement. Hence the load on the steam boiler varies to meet the requirement. In the boiler, the furnace draught has to be maintained in the range of 8-10 mmWC. The furnace draught is maintained by controlling the inlet damper of the ID fan. Damper control is an inefficient method of capacity control. Damper control leads to pressure drop across the damper and hence energy loss. The pressure drop across the damper control can be eliminated, by installing variable frequency drive for the fan with feed back control. The feed back control can be based on furnace pressure. If the furnace pressure increases due to increase in load on the boiler, the signal will be given to the variable frequency drive. The variable frequency drive will increase the speed of the fan to maintain the set pressure. Similarly during lower load, the fan speed is reduced to meet the requirement. This results in tremendous energy saving in ID fan.
Present Status
A centrifugal fan is in continuous operation for removing the exhaust gasses from fluidised bed boiler and sent to the chimney. A damper control is provided at the inlet of the ID fan and throttled. Damper control at the inlet of the fan is a clear indication of excess pressure /capacity available in the centrifugal fan. Damper control leads to pressure loss across the damper and hence energy loss. The pressure loss across the damper is about 31% of the total pressure developed by the fan. There is a good potential to save energy by optimising the operation of the centrifugal fan and avoiding the pressure loss across the damper control.

A variable frequency drive was installed for the induced draught fan with feed back control. The feed back control was based on the furnace draught. The furnace draught is set at 8-10 mmWC. The control damper is kept fully opened.
Benefits The pressure loss across the damper control is totally eliminated. The reduction in power consumption of about 3 KW was achieved. Financial analysis Annual energy saving of Rs 0.09 months was achieved. This required an investment of Rs 0.12 millions for installing variable frequency drive, which had a simple payback period of 17 Months.

Paper Proposal-7: Install Variable Frequency Drive for ID Fan in Boiler Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.120 -0.120 0.244 60.12% 0.120 0.096 0.090 -0.002 0.082 0.024 0.090 0.024 0.053 0.000 0.090 0.032 0.041 0.000 0.090 0.032 0.037 0.000 0.090 0.032 0.033 0.000 0.090 0.032 0.029 0.000 0.090 0.032 0.026 0.000 0.090 0.032 0.023 0.000 0.090 0.032 0.021 0.000 0.090 0.032 0.019 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.09 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.092 0.066 0.058 0.058 0.058 0.058 0.058 0.058 0.058 0.058

Case study - 8
Install Low Pressure Economiser for Preheating the Boiler Feed Water
Back Ground
In boiler the operating efficiency can be improved by reducing the flue gas temperature and thereby reducing the fluegas loss. For every 20oC drop in flue gas temperature, the operating efficiency of the boiler increases by 1%. The reduction in flue gas temperature is decided by the acid dew point temperature. If the flue gas temperature is about 20oC more than the acid dew point temperature, the boiler could be operated without much of corrosion problem. In smaller size boiler, the latest trend is installing low pressure economizer and recovering the heat from the flue gas. The low pressure economizer is a simple shell and tube heat exchanger installed in the flue gas path. Boiler feed water is pumped through the economizer for preheating. The advantages of low pressure economizer are : ! Excellent heat recovery unit with very attractive payback period. ! Since it is a low pressure equipment, It does not require IBR certification.
Present status
In one of the small size paper plant a boiler of 8 tons/hr capacity is in operation and another boiler is kept as stand by. The flue gas temperature of boiler is measured as 225oC at high flame. The flue gas temperature is very high. Coal is used as fuel in the boiler. The acid dew point temperature is in the range of 140-145oC. The flue gas temperature can be conveniently brought down to 180oC, without leading to corrosion. For every 20oC drop in flue gas temperature an efficiency improvement of 1% can be achieved.
Recommendation
We recommend to install low pressure economiser and preheat the boiler feed water. The schematic diagram of the proposed system is shown in the back up calculations. The supplier address is given in annexure C.
Benefits
An annual saving of Rs 0.6 millions can be achieved by implementing this proposal. This requires an investment of Rs 0.5 millions for low-pressure economiser. This will have a simple pay back period of 10 Months.

Paper Proposal-8: Install Low Pressure Economiser for Preheating the Boiler Feed Water Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.500 0.400 0.600 0.072 -0.500 1.831 92.41% 0.472 0.100 0.600 0.179 0.335 0.000 0.600 0.215 0.274 0.000 0.600 0.215 0.245 0.000 0.600 0.215 0.218 0.000 0.600 0.215 0.195 0.000 0.600 0.215 0.174 0.000 0.600 0.215 0.155 0.000 0.600 0.215 0.139 0.000 0.600 0.215 0.124 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.6 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.500 0.528 0.421 0.385 0.385 0.385 0.385 0.385 0.385 0.385 0.385

Textile
Energy Conservation in Textile Industry
Introduction The textile industry is one of the oldest in the country, more than 105 years old. The textile industry has undergone rapid changes over the years. There are more than 2324 units operating in the power-processing sector. Many new units are being set up and older units being modernised. Indian textile industry is worth around Rs 800 billion (US$ 22.05 billion) accounting for approximately 20% of Indias total industrial output. The textile industry is an important segment of the countrys economy, which contributes 3% to countrys GDP and earns about 27% of the gross export earnings, totaling to 12.1 BN USD, USD 50 billion has been set by 2010. Indian textile sector also employs 15 million people, about 21% of the work force. The cotton cloth production in the year 2001 02 was 40256 million sq. mtrs. Which shows rise in production by 2.7%. The growth potential of textile sector is estimated to be 5.65%. The Indian textile industry consumes nearly 10.4% of the total power produced in India. In a large composite textile mill, the cost of energy as percentage of the manufacturing cost varies between 12 15%, which includes electrical and thermal energy. The energy cost is next to the raw material cost and comparable to labour cost. Hence, energy conservation in a textile mill plays significant importance and is a priority area for maximising profits. The scope for energy conservation in the textile sector is normally around 15%.

Case study No. 1
Install Variable Frequency Drive (VFD) for Plan Sifters of Mill A and Mill B
Present Status
In a Textile Unit all the 7 plan sifters of Mill A and Mill B were observed to be lightly loaded. The rated power of the motors in Mill A and Mill B are 2 kW and 2.2 kW respectively. The plan sifters require very high starting torque, but during normal running, they consume less power. The actual measurements show that, the power drawn by plan sifters during normal running varies between 1.07 and 1.45 kW. The operating power factor is in the order of 0.51 to 0.68, which is very low. This leads to decrease in operating efficiency of the motors.

Installing AC Drives for these lightly loaded motors, reduces consumption of more power than requirement. The motors of the 7 plan sifters can be grouped and connected to AC drives. AC drives are now available in compact and simple models to cater such applications. Since this application doesnt require much complicated feedback or control, AC drives can replace the existing conventional starters. Hence, recommendation was made to install AC Drives. The Mill A pan sifters (4 Nos) were grouped and connected to a common AC Drive. Similarly, Mill B (3 Nos) were grouped and connected to an AC Drive. This provided better control, flexibility and energy savings as compared to existing set-up.
Benefits
The annual savings potential was Rs. 0.63 millions. This required was investment of Rs.1.2 millions (for two AC Drives) and was paid back in 23 months Cost benefit analysis Annual Savings Rs. 0.63 millions Investment Rs. 1.2 millions Simple payback 23 months

Textile Proposal-1: Install Variable Frequency Drive (VFD) for Plan Sifters of Mill A and Mill B Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 1.200 0.960 0.630 -0.118 -1.200 1.459 42.82% 0.668 0.240 0.630 0.140 0.391 0.000 0.630 0.226 0.288 0.000 0.630 0.226 0.257 0.000 0.630 0.226 0.229 0.000 0.630 0.226 0.205 0.000 0.630 0.226 0.183 0.000 0.630 0.226 0.163 0.000 0.630 0.226 0.146 0.000 0.630 0.226 0.130 0.630 0.630 0.630 0.630 0.630 0.630 0.630 0.630 0.630 0.630 0.63 1.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-1.200 0.748 0.490 0.404 0.404 0.404 0.404 0.404 0.404 0.404 0.404

Case study No. 2
Reduce Compressed Air Consumption in Sand Blasting Machine

Present status
Sand blasting machines are the major consumers of compressed air in the plant. It was observed that the sand blasting equipment is operated based on the entry of compressed air into the sand blast cylinder, through a knob present in the sandblasting handgun. When this knob is opened, (which happens when there is no blasting operation) there is a continuous venting of compressed air from the knob. The size of the opening is 5mm. It was noted that for about 20% of the operating time there is venting of air from this opening. The estimated quantity of compressed air, which is vented totally from all the 10 machines, is 115 cfm. Energy Saving Project Reduction in power consumption of the compressors was achieved by closing the supply lines of the compressor to the sand blasting guns during the non-operating times of the machine. This was done by installing ball valves in the supply lines of the sand blasting guns. The individual machines were provided with individual valves. The operation of these valves was automated and interlock was given with the operation of sand blasting machines. Benefits The annual energy saving potential was Rs 1.37 millions. This required an investment of about Rs 0.50 millions for the ball valves and was paid back within 5 months. Cost benefit analysis Annual Savings Rs. 1.37 millions Investment Rs. 0.50 millions Simple payback 5 months

Textile Proposal-2: Reduce Compressed Air Consumption in Sand Blasting Machine Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.500 0.400 1.370 0.348 -0.500 4.621 196.32% 0.913 0.100 1.370 0.456 0.729 0.000 1.370 0.491 0.625 0.000 1.370 0.491 0.558 0.000 1.370 0.491 0.498 0.000 1.370 0.491 0.445 0.000 1.370 0.491 0.397 0.000 1.370 0.491 0.355 0.000 1.370 0.491 0.317 0.000 1.370 0.491 0.283 1.370 1.370 1.370 1.370 1.370 1.370 1.370 1.370 1.370 1.370 1.37 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.500 1.022 0.914 0.879 0.879 0.879 0.879 0.879 0.879 0.879 0.879

Case study - 3
Install High Efficiency Atomisers in Lieu of Nozzles in Humidification Plants

Background
Humidification plays an important role in any composite textile unit. In composite textile units, humidification is a major load. In textile plants humidity is a critical parameter for the conditioning / stickiness of yarn. Humidity varies with the type of yarn and type of application. Humidity varies from 50 75% based on applications e.g. spinning, weaving and types of fabric. Generally, all humidification plants are installed with conventional type nozzles. This requires small nozzles in large numbers to meet the humidity requirement. This causes loss of force due to friction for spraying water through small orifice. This also requires high head and high flow of water. Now a days better designed atomizer with high efficiency is available. One nozzle can replace with 50 conventional type nozzles.
Advantages
! ! ! ! ! No cleaning / Maintenance Water flow : 1/3 flow of normal flow required Head : 1.45 times normal head required Lower flow due to better atomisation Substantial energy savings ! Density of atomised water could be adjusted according to the requirement
Recommendations
It is recommend to install atomisers in lieu of conventional type nozzles, where spray pumps are running continuously.
Benefits
Installation of atomiser in humidification plants will result in annual savings of Rs. 0.43 million. This calls for an investment of Rs. 0.35 million for changing the atomisers. This has a simple payback period of 10 months.
Textile Proposal-3: Install High Efficiency Atomisers in Lieu of Nozzles in Humidification Plants Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.350 0.280 0.430 0.054 -0.350 1.318 94.41% 0.336 0.070 0.430 0.129 0.240 0.000 0.430 0.154 0.196 0.000 0.430 0.154 0.175 0.000 0.430 0.154 0.156 0.000 0.430 0.154 0.140 0.000 0.430 0.154 0.125 0.000 0.430 0.154 0.111 0.000 0.430 0.154 0.099 0.000 0.430 0.154 0.089 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.43 0.35 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.350 0.376 0.301 0.276 0.276 0.276 0.276 0.276 0.276 0.276 0.276

Case study No. 4
Install Energy Efficient Pnuemafil Fans in Ring Frames

Back ground
The main function of the pnuemafil fans in Ring frame machine is to remove fluff from cotton / fiber threads and preparing cones of yarn, which in further used for preparation of yarn beams. Normally 5 7.5 kW motor is installed for Pnuemafil fan of Ring Frame machine, and conventional pnuemafil fan consumes 4.1 4.5 kW. Now a day energy efficient fan with suction tube is available which are specially designed and can reduce power consumption atleast by 20%
Comparison
For G 5/1 Ring Frames
Comparative study on Impeller and Suction tube Spindle no. Conventional fan with 490 mm dia. Fan with suction tube 115 * 50 * 30* Energy efficient fan with 490 mm dia. with suction tube 150 * 100 * 85* Energy efficient fan with 460 mm dia. with suction tube 110* 70* 60*
(OE) 505 (Middle) 751 (GE) 1008
* All measurements in mm WC
Recommendation
It is recommend to install energy efficient pnuemafil fans for existing ring frame machines. By installing energy efficient fans in atleast 2/3 machines, trial should be taken and after seeing the performance, all the Ring Frames should be converted with energy efficient fans.
Benefits
The total annual savings will be Rs. 0.78 million. The investment required is Rs. 0.40 million, which will get paid back in 6 months.
Textile Proposal-4: Install Energy Efficient Pnuemafil Fans in Ring Frames Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.400 0.320 0.780 0.165 -0.400 2.551 143.69% 0.549 0.080 0.780 0.251 0.422 0.000 0.780 0.280 0.356 0.000 0.780 0.280 0.318 0.000 0.780 0.280 0.284 0.000 0.780 0.280 0.253 0.000 0.780 0.280 0.226 0.000 0.000 0.000 0.780 0.780 0.780 0.280 0.280 0.280 0.202 0.180 0.161 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.780 0.78 0.4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.400 0.615 0.529 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500

Case study No. 5
Install VFD for Autocoro Suction Motor

Background
In the spinning department, autocoro machine is used for manufacturing yarn. Autocore machine draws cotton rope and prepares finer count yarn (7s / 16s / 2 X 50s / 2 X 40s etc) which is further used as raw material for processing in process department. Autocoro machine is used to get required count of the yarn and in the process it removes fluff and other impurities from the yarn. Normally, based on type of count, constant suction pressure is maintained in the suction box of autocoro machine. Suction motor is used to maintain suction pressure for removal of fluff and other impurities from yarn. Suction pressure is varying with the count of the yarn. Maximum suction of 85 mbar is sufficient for the process. But due to accumulation of fluff in suction box and choking of suction net suction pressure is varied or maintained high. Power consumption of suction motor is @ 20 kW because of high suction pressure.
Recommendation
It is recommended to install variable speed drive with suction pressure as feed back signal, for suction motor and set the pressure at 85 mbar. Variable speed drive will always try to match the suction requirement of suction pressure and will operate at lower speed.
Benefits
By installing variable speed drive atleast 15 20% energy can be saved. The annual energy saving potential is Rs 1.28 million. This requires an investment of Rs 2.00 million, for installing variable frequency drive for all the pumps, which gets paid back in 19 months. Cost benefit analysis Annual Savings Rs. 1.28 millions Investment Rs. 2.00 millions Simple payback 19 months

Textile Proposal-5: Install VFD for Autocoro Suction Motor Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -2.000 -2.000 3.265 51.82% 2.000 1.600 1.280 -0.115 1.245 0.400 1.280 0.316 0.769 0.000 1.280 0.459 0.584 0.000 1.280 0.459 0.522 0.000 1.280 0.459 0.466 0.000 1.280 0.459 0.416 0.000 1.280 0.459 0.371 0.000 1.280 0.459 0.332 0.000 1.280 0.459 0.296 0.000 1.280 0.459 0.264 1.280 1.280 1.280 1.280 1.280 1.280 1.280 1.280 1.280 1.280 1.28 2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.395 0.964 0.821 0.821 0.821 0.821 0.821 0.821 0.821 0.821

Case study No. 6
Install Variable Frequency Drive for Water Circulating Pumps of Jet Dyeing Machine
Background
The Jet dyeing machines are used for washing and dyeing the fabrics. For washing the fabrics hot water is circulated inside the jet-dyeing machine. A dedicated centrifugal pump for individual jet dyeing machine remains in continuous operation for circulating the hot water inside the machine. During the washing process the pressure requirement for water circulation varies over a period of time. The initial pressure requirement for water circulation is in the range of 1-1.5 kg/cm2. For maintaining the required pressure a control valve provided at the outlet of the centrifugal pump is manually throttled based on the pressure gauge indication provided at the down side of the control valve. This condition prevails for atleast 30-35% of the batch time. During the washing process, as heating of water takes place in the jet dyeing machines the pressure gradually increases. After certain period of time the required pressure for water circulation is in the range of 2.0-2.5 kg/cm2. The pressure requirement and the time taken for washing varies depending upon the fabrics. During the maximum pressure requirement the control valve provided at the outlet of the pump is kept fully opened. During valve throttling, there is a significant pressure loss and hence energy loss occurs across the control valve. There is a good potential to save energy by avoiding the pressure loss across the control valve. This can be achieved by installing variable frequency drive for the centrifugal pumps. Instead of throttling the control valve the speed of the centrifugal pump has to be varied using the variable frequency drive to meet the required pressure.
Recommendation
It is recommended to: Install variable frequency drive for the centrifugal pump in each jet-dyeing machine. Provide a speed control switch at the user end. So that instead of valve throttling the speed of the centrifugal pump can be varied to meet the required pressure. Keep the control valve fully opened.
Benefits
On a conservative basis 35% energy savings can be achieved for 30% of the operating time. The annual energy saving potential is Rs 0.32 million . This requires an investment of Rs.0.8 million, for installing variable frequency drive for all the pumps, which gets paid back in 30 months.
Textile Proposal-6: Install Variable Frequency Drive for Water Circulating Pumps of Jet Dyeing Machine Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.080 0.064 0.320 0.092 -0.080 1.105 279.02% 0.204 0.016 0.320 0.109 0.168 0.000 0.320 0.115 0.146 0.000 0.320 0.115 0.130 0.000 0.320 0.115 0.116 0.000 0.320 0.115 0.104 0.000 0.320 0.115 0.093 0.000 0.320 0.115 0.083 0.000 0.320 0.115 0.074 0.000 0.320 0.115 0.066 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.32 0.08 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.080 0.228 0.211 0.205 0.205 0.205 0.205 0.205 0.205 0.205 0.205

Case study No. 7
Reduce the Speed of Exhaust Fans in Stenters

Background
In Stenters centrifugal fans are kept in continuous operation for removing the exhaust air after the drying process. The air is collected from various zones and sent to atmosphere. It is observed that the dampers provided in ducts from various collection zones are heavily throttled. The dampers are only 25 35% open. Due to damper throttling there is a significant pressure loss and hence energy loss across the damper. Hence, there is a good potential to save energy by avoiding the pressure loss across the damper control. This can be achieved by reducing the speed of the fan to match the requirement and increasing the damper opening.
Recommendations Step 1
Install a variable frequency drive for the fan temporarily and gradually reduce the speed of the fan. Simultaneously gradually increase the damper openings. Periodically check the quality of the product. Identify the minimum speed of the fan at which the dampers can be kept fully opened without affecting the quality of the product.
Step -2
After identifying the speed of the fan, permanently reduce the speed of the fan. The driver or driven pulleys can be accordingly changed for the bet driven fans. For direct driven fans, convert the directly driven fans to belt driven fans and reduce the speed.
Benefits
On a conservative basis atleast 40% savings can be achieved. The annual energy saving potential is Rs 0.10 million. This requires an investment of Rs 0.03 million for changing the pulleys, which gets paid back in 3 Months. Cost benefit analysis Annual Savings Rs. 0.10 millions Investment Rs. 0.03 millions Simple payback 3 months
Textile Proposal-7: Reduce the Speed of Exhaust Fans in Stenters Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.030 0.024 0.100 0.027 -0.030 0.342 235.39% 0.065 0.006 0.100 0.034 0.053 0.000 0.100 0.036 0.046 0.000 0.100 0.036 0.041 0.000 0.100 0.036 0.036 0.000 0.100 0.036 0.032 0.000 0.100 0.036 0.029 0.000 0.100 0.036 0.026 0.000 0.100 0.036 0.023 0.000 0.100 0.036 0.021 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.1 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.030 0.073 0.066 0.064 0.064 0.064 0.064 0.064 0.064 0.064 0.064

Case study No. 8
Avoid Idle Operation of Motors by Providing Stop Motion Circuit for Blow Room
Background
Hard pressed bales of raw cotton obtained from the market are first put through blow room where, by a combination of rapid beating and suction, the cotton lumps are broken down in size and part of the impurities such as sand leaf, stalk etc, which are heavy, are removed. The opened cotton is delivered in the form of roll called a lap or in loose tufts. Blow room cycle operates continuously for almost 23 hrs a day. Blow room consists of following: " Stripper roller : 0.55 kW " Take off roller : 0.37 kW " Opening roller : 4.00 kW " Dust fan : 3.00 kW " De Duster : 4.50 kW " Mono Cylinder beater : 2.20 kW " Ventilator : 4.00 kW The opened cotton in the form of lap or loose tufts is than transferred to drawframes. Whenever the above mixtures are filled upto the pre-determined limit, the subsequent material transport motor is stopped. But all other motors, such as the beaters and stripper rollers etc., will be running idly, leading unnecessary energy consumption. Motor idle time varies between 10 to 12 hrs. All these idle running motors could be stopped step by step and could also be restarted at pre-determined time intervals whenever the demand arises. This is possible by introduction of stop motion circuit into the blow room.
Recommend
It is recommended to install stop motion circuit in blow room. As soon as cotton mixture will be filled to pre-determined limit, it will stop the above mentioned motors. Assuming idle time of 10 hrs and loading of motors at 50%, atleast 40% energy can be saved by avoiding idle operation of motors.
Sample calculation LR Blow room single line

The following motors can be stopped (Assuming 4500 kg process for 23 hrs running) " Stripper roller: 0.55 kW " Take off roller: 0.37 kW " Opening roller: 4.00 kW
" " " " "
Dust fan : 3.00 kW De Duster : 4.50 kW Mono Cylinder beater: 2.20 kW Ventilator: 4.00 kW Total : 18.62kW
Power consumption @ 50% load / hr 18.62 kW X 50% Load = 9.31 kWh. Assuming motor idle time is 10 hrs out of 23 hrs of operation. Units saved = = = 9.31 kW X 10 hrs 93.1 kWh/day 33516 kWh/Annum
Benefits
The annual energy saving potential is Rs 0.13 million. This requires an investment of Rs 0.05 million for changing the pulleys, which gets paid back in 5 Months. Cost benefit analysis Annual Savings Rs. 0.13 millions Investment Rs. 0.05 millions Simple payback 5 months
Textile Proposal-8: Avoid Idle Operation of Motors by Providing Stop Motion Circuit for Blow Room Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.050 0.040 0.130 0.032 -0.050 0.437 187.05% 0.087 0.010 0.130 0.043 0.069 0.000 0.130 0.047 0.059 0.000 0.130 0.047 0.053 0.000 0.130 0.047 0.047 0.000 0.130 0.047 0.042 0.000 0.130 0.047 0.038 0.000 0.130 0.047 0.034 0.000 0.130 0.047 0.030 0.000 0.130 0.047 0.027 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.13 0.05 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.050 0.098 0.087 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.083

Case study No. 9
Install Transvector Nozzle for the Cleaning Applications

Background
Generally for cleaning application same air pressure is used as air required for plant. For cleaning application compressed air tapping from main header is taken and same air is used for cleaning of machines. The observations on compressed air generation and utilization for cleaning application are as below: Three screw air compressors of capacity 1475 cfm is in operation to supply compressed air for the plant requirements. The compressed air is supplied at an average pressure of 7.00 kg/cm2. In weaving section about 10 -15% of the compressed air is used for cleaning the weaving looms and removal of fluff fabric. There are about 8 numbers of such air cleaning points available in the plant. For cleaning operations the volume of the airflow is the criterion, not the pressure. Air at a pressure of 2.0-2.5 kg/cm2 can effectively clean the products. The following observations were made in cleaning of cabinet section: 1. Total 8 cleaning points in operation 2. 1/ 2 hose- pipe is used for cleaning 3. Header pressure is 7.0 Ksc 4. Cleaning points are without guns. The recent trend is using Transvecto nozzles for cleaning applications. The r Transvector nozzles can be fitted at the user ends. It works based on venturi principle. When the compressed air flows through the nozzle, the atmospheric air is sucked in through the holes provided in the periphery of the nozzle. The atmospheric air is mixed with compressed air and supplied for cleaning at lower pressure (2-3 kg/cm2). The atmospheric air replaces 50% of the compressed air. There is a good potential to save energy by installing Transvector nozzles for cleaning operations.
Recommendation
It is recommend to install Transvector nozzles at the identified cleaning points in the packing section.
Benefits
On a conservative basis, atleast 30% energy savings can be achieved by replacing the compressed air with atmospheric air. The total annual savings that can be achieved by implementing this project is Rs. 0.08 million. The investment required is estimated at Rs. 0.01 million with a payback period of 2 months.
Textile Proposal-9: Install Transvector Nozzle for the Cleaning Applications Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.010 0.008 0.080 0.026 -0.010 0.283 538.15% 0.048 0.002 0.080 0.028 0.041 0.000 0.080 0.029 0.037 0.000 0.080 0.029 0.033 0.000 0.080 0.029 0.029 0.000 0.080 0.029 0.026 0.000 0.080 0.029 0.023 0.000 0.080 0.029 0.021 0.000 0.080 0.029 0.018 0.000 0.080 0.029 0.017 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.080 0.08 0.01 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.010 0.054 0.052 0.051 0.051 0.051 0.051 0.051 0.051 0.051 0.051

Case study No. 10
Replace Old Conventional Motors with Energy Efficient Motors

Background
The conventional standard induction motors have efficiencies of 75 to 88% depending on the size and the loading of the motors. The Energy Efficient Motors (EEM) are designed with low operating losses. The efficiency of Energy Efficient motors is high when compared to conventional AC induction motors, as they are manufactured with high quality and low loss materials. The efficiency of Energy Efficient motors available in the market range from 80 to 95%, depending on the size. The efficiency of energy efficient motors is high due to the following design improvements: More copper conductors in stator and la rotor conductor bars, resulting in lower rge copper loss Using a thinner gauge, low loss core steel and materials with minimum flux density reduces iron losses. Friction loss is reduced by using impr oved lubricating system and high quality bearings. Windage loss is reduced by using energy efficient fans. Use of optimum slot geometry and minimum overhang of stator conductors reduces stray load loss. Efficiency of a motor is proportional to the loading of the motor. Conventional Motors operate in a lower efficiency zone when they are loaded less than 60%. At all loading ranges of the motor, efficiency of EEM is higher than conventional motors. There is a good potential to replace these inefficient motors with energy efficient motors. Replacing with energy efficient motors would result in at least 8-10% efficiency improvement.

In a textile plant, the old conventional motors, which were rewound for more than 5 times were replaced with energy efficient motors.
Benefits
An annual energy savings potential of Rs. 1.49 million has been achieved by replacing the old inefficient motors with energy efficient motors. The investment made was around Rs. 1.10 million, which got paid back in 9 months.

Textile Proposal-10: Replace Old Conventional Motors with Energy Efficient Motors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 1.100 0.880 1.490 0.219 -1.100 4.643 103.15% 1.135 0.220 1.490 0.456 0.825 0.000 1.490 0.535 0.680 0.000 1.490 0.535 0.607 0.000 1.490 0.535 0.542 0.000 1.490 0.535 0.484 0.000 1.490 0.535 0.432 0.000 1.490 0.535 0.386 0.000 1.490 0.535 0.345 0.000 1.490 0.535 0.308 1.490 1.490 1.490 1.490 1.490 1.490 1.490 1.490 1.490 1.490 1.49 1.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-1.100 1.271 1.034 0.955 0.955 0.955 0.955 0.955 0.955 0.955 0.955

Sugar
Energy Conservation in Sugar Industry
Introduction
Brazil and India are the largest sugar producing countries followed by China, USA, Thailand, Australia, Mexico, Pakistan, France and Germany. The world consumption is projected to grow to 160.7 MMT in 2010, and 176.1 MMT by 2015. According to ISO, the world sugar output is forecasted to reach 145.0 MMT and consumption to reach 147.0 MMT in 2004-2005 India is the largest producer-consumer of sugar in the world. The new sugar year 2005-06 began on 1st October 2005 with an opening stock of about 45 lakh tonnes. Sugar production in the country has been estimated at 180 lakh tonnes, while the consumption has been estimated at 185 lakh tonnes. It is also estimated that in the year 2006-07, sugar production will increase further to a record level of 225 lakh tonnes. Indian sugar industry is amongst the most diversified industry in the world, with an installed capacity to produce 847 MW co-generated power against a potential of 5000 MW. 50 more units with a capacity of 600 MW are in the process of putting up plants. The Government of India today recognizes this potential and has committed itself to promote renewable sources of energy. In this section, several actual implemented case studies in sugar industry is highlighted

Case study 1
Install Diffusers in Lieu of Milling Tandem

Background
Installation of milling tandem is practiced conventionally in sugar plants in India. Milling is highly power and labour oriented equipment. The present trend is to adopt diffusion as an alternative to Milling, considering several advantages diffusion offers over milling. It is a low cost extraction process. In conventional milling mass transfer operation is by leaching followed by high pressure squeezing. In diffusion process, the physico-chemical principle of diffusion is adopted. Here sugar molecules moves from higher concentration to lower concentration due to concentration gradient. Rate of diffusion is proportional to the temperature, concentration gradient and the area of liquid and solid contact. The Juice extraction process in the cane diffuser system is as follows: 1. Cane is prepared to a Preparation Index (PI) of 85%+, ensuring long fiber preparation. The heavy duty swing hammer fibrizor described above is suitable for meeting this requirement. 2. Prepared cane is delivered to the diffuser. The cane is heated at entry to the diffuser to a temperature of 83oC by scalding juice, which is at a temperature of about 90oC. 3. The diffusion percolation bed is a moving conveyor on which the cane mat height is between 1200 mm to 1400 mm 4. The diffuser is divided in 13 circulation compartments. Juice from each compartment is re-circulated in counter current manner to cane blanket movement, from low brix area to high brix area. 5. The scalding juice is limed in order to maintain a pH of about 6.5 in the diffuser in order to prevent inversion of sucrose 6. Average temperature of the material inside the diffuser is about 780C 7. Draft juice from the diffuser is at about 690C and therefore is sent directly to the sulphitation vessel because it is already at the required temperature for sulphitation 8. Diffusion bagasse at exit of the diffuser is at supersaturated moisture and is dewatered in a single six-roller mill. Final bagasse moisture is 51 % plus 9. Imbibition is applied directly in the diffuser. Hot condensate at 84 Degree C from the evaporator last effect is used for this. Imbibition quantity at this plant is 320 % on Fiber. 10. Draft juice is measured by a mass flow meter. Hence the juice is delivered to the sulphitation vessel in a closed pipe without appreciable loss of temperature. Screening of draft juice is found to be not necessary because the bagasse bed through which the juice percolates, itself acts as a screen.

A 2200 TCD plant in India has installed cane diffuser by design. The power consumption in a standard sugar mill, utilizing a milling tandem for juice extraction is 17.8 kWh / ton. In the plant under discussion, the average power consumption in the juice extraction section is 11.4kWh / Ton. This result in a decrease of 6.4 kWh / Ton of cane crushed. The other spin off benefits on installation of diffuser is: ! ! ! ! ! ! ! Increased extraction Lower power consumption Lower maintenance cost Reduction in Unknown loss Reduction in Lubrication Cost Reduction in Sugar Loss in filter cake Availability of More Bagasse
Financial Analysis
The additional saving benefit was Rs 8.0 million. Considering an average crushing of 2200 TCD for an operating season of 180 days, the reduction in power consumption is 28.8 Lakh units. This results in an energy cost saving of Rs. 8.0 million / season (Considering power export cost of Rs. 2.75 / kWh). The diffuser was installed by design.

Case study 2 Utilization of Exhaust Steam for Sugar Drier and Sugar Melter
Background
The sugar manufacturing process needs substantial amount of thermal energy, in the form of steam. The majority of steam requirement is at low pressures (0.6 to 1.5 ksc), while a small percentage of the steam consumption is at medium pressure of about 7.0 ksc. In the sugar mills, the requirement of steam at lower pressures is met from the exhaust of the turbine; while the medium pressure (MP)steam, in most of the plants, is generated bypassing the live steam generated from the boiler, through a pressurereducing valve. This is schematically indicated below:
Benefits of using exhaust steam for sugar drier and melter ! Increased co-generation ! Additional power export to grid With the installation of commercial cogeneration systems, the projects for additional cogeneration have become attractive, as additional power can be sold to the grid. One of the methods of improving cogeneration is the replacement of high-pressure steam with low-pressure steam, wherever feasible. In a sugar mill, there is a good possibility of replacing some quantity of MP steam users with exhaust steam, resulting in increased power generation. This case study describes one such project implemented in a 2500 TCD sugar mill. Previous Status In one of the 2500 TCD sugar mills, medium pressure steam at 7.0 ksc, generated by passing live steam at 42 ksc, through a pressure reducing valve (PRV), was being used in the following process users: ! Hot water superheating for use in the centrifuges ! Sugar drier blower ! Sugar melter
The temperature requirements for sugar drier blower and sugar melter are about 80C and90C respectively. The centrifuge hot water was to be heated to a temperature of about115 - 125C. Exhaust steam generated by passing live steam through a turbine was available at around1.2 ksc.

The exhaust steam was utilized in place of live steam for sugar melting (blow-up) and sugar drying.
Concept of the project

The sugar melting requires a temperature of 90C and sugar drying needs about 80C. The heat required for these two process users, can be easily achieved by exhaust steam. Replacement of live steam with exhaust steam in these two users can increase the cogeneration. Every ton of medium pressure steam replaced with exhaust steam can aid ingeneration of additional 120 units of power.
Implementation Methodology, Problems faced and Time frame

The steam distribution network was modified, to install steam line from the exhaust header to sugar Melter and sugar drier blower. There were no problems faced during the implementation of this project, as the modification involved only the laying of new steam pipelines and hooking it to the main steam distribution system. The entire modification was carried out in 15 days time.
Benefits
The live steam consumption, amounting to about 0.3 TPH, in the sugar melter and sugar drier blowers, was replaced with exhaust steam. This resulted in additional power generation of about 35 units, which could be sold to the grid.
Financial Analysis
The annual energy saving achieved was Rs. 0.2 million. This required an investment of Rs. 0.02 million, which had a very attractive simple payback period of 2 months.
Note
Similarly, exhaust steam can partly substitute the use of live steam for hot water heating in centrifuges. The centrifuge hot water heater requires a temperature of about 115 -125C.Exhaust steam can be used for heating the centrifuge wash water to atleast 105C. The heating, from 105C to 125C can be carried out by live steam. This will partly substitute theuse of live steam and will increase the cogeneration power.


Sugar Proposal-2: Utilization of Exhaust steam for Sugar Drier and Sugar melter Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.020 -0.020 0.711 667.02% 0.020 0.016 0.200 0.066 0.120 0.004 0.200 0.070 0.103 0.000 0.200 0.072 0.091 0.000 0.200 0.072 0.082 0.000 0.200 0.072 0.073 0.000 0.200 0.072 0.065 0.000 0.200 0.072 0.058 0.000 0.200 0.072 0.052 0.000 0.200 0.072 0.046 0.000 0.200 0.072 0.128 0.041 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.2 0.02 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.134 0.130 0.128 0.128 0.128 0.128 0.128 0.128 0.128
Case study 3
Installation of Conical Jet Nozzles for Mist Cooling System

Background
The spray pond is one of the most common type of cooling system in a sugar mill. In a spray pond, warm water is broken into a spray by means of nozzles. The evaporation and the contact of the ambient air with the fine drops of water produce the required degree of cooling. There are many types of nozzle configurations available for different spraying applications. Most of them aim to give a water spray the form of a hollow cone. A good spray nozzle should be of simple design, high capacity and high efficiency. Of the various types of spray nozzles, the conical jet nozzles have been found far superior on all the above parameters. Hence, the recent trend among the new sugar mills is to install the conical jet nozzles, to achieve maximum dispersion of water particles and cooling.
Mist Cooling System Previous status

In a sugar mill, the cooling system consisted of a spray pond. There were 5 pumps of 75 HP rating operating continuously, to achieve the desired cooling parameters. The materials of construction of the spray nozzles were Cast Iron (C.I). These nozzles had the disadvantages of low capacity and high head requirements (of the order of 1.0 1.2 ksc or10 -12 m of water column). The maximum cooling that could be achieved with the spray pond was about 34 - 35 C. To achieve better cooling, higher efficiency and energy savings, the conical jet nozzles were considered.

The spray pond system was modified and conical jet nozzles were installed to achieve mist cooling.
Concept of the proposal

The water particle dispersion is so fine that, it gives a mist like appearance. The surface area of the water particles in contact with the ambient air is increased tremendously. Hence, better cooling is achieved with the mist cooling system. The material of construction of the latest conical jet nozzles is PVC, which enables achieve better nozzle configuration. They will also help attain the same operating characteristics as the cast iron nozzles, but at a much lower pressure drop or head (0.5 - 0.8 ksc) requirement. This reduces the cooling water pump power consumption substantially.
Implementation Status, Problems faced and Time frame

The earlier CI nozzles of 40 mm diameter were replaced with PVC conical jet nozzles of 22mm diameter, in phases. There were no problems faced during the implementation of this project. As the project was implemented in phases, it was implemented in totality over 2 sugar seasons.

Benefits Achieved
The cooling achieved with the mist cooling system was about 31 - 32 C (i.e., a subcooling of 2 - 4 C was achieved). This resulted in avoiding the operation of one 75 HP pump completely. In addition, significant process benefits were achieved. The better cooling water temperatures, helped in maintaining steady vacuum conditions in the condensers. This minimized the frequent vacuum breaks, which occurred in the condensers (on account of the high cooling water temperatures) and also ensured better operating process parameters.
Financial Analysis
The annual energy savings achieved were Rs.0.32 million (assuming a cogeneration system with 120 days of sugar season and saleable unit cost of Rs.2.50/kWh). This required an investment of Rs.0.50 million, which had a simple payback period of 19 months.

Sugar Proposal-3: Installation of Conical Jet Nozzles for mist cooling system Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.500 -0.500 0.816 51.82% 0.500 0.400 0.320 -0.029 0.311 0.100 0.320 0.079 0.192 0.000 0.320 0.115 0.146 0.000 0.320 0.115 0.130 0.000 0.320 0.115 0.116 0.000 0.320 0.115 0.104 0.000 0.320 0.115 0.093 0.000 0.320 0.115 0.083 0.000 0.320 0.115 0.074 0.000 0.320 0.115 0.205 0.066 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.32 0.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.349 0.241 0.205 0.205 0.205 0.205 0.205 0.205 0.205
Case study 4
Installation of Regenerative Type Continuous Flat Bottom High Speed Centrifugal for A - Massecuite Curing
Background
The syrup after concentration to its maximum permissible brix levels in the vacuum pans is passed to the crystallizers. From the crystallizers, the concentrated and cooled mass, comprising of molasses and crystals are fed to the centrifugal, so that the mother liquor and the crystals are separated, to obtain the sugar in the commercial form. The recent trend among the sugar mills is to install fully automatic centrifugal. The operations involved in the centrifuge are -starting, charging, control of charging speed, closing These centrifugal had the conventional type of braking system, with no provisions for recovery of energy expended during changeover to low speed or discharging speed. The power consumption in these centrifugal were of the massecuite gate, acceleration, washing with superheated wash water& steam, drying at high speed, change to low speed & control of discharging speed, opening the discharge cone, drying out the sugar, and starting the next charge. All these are carried out by an assembly of controls, programmed to operate in the correct sequence. At the end of the drying period, the centrifugal is stopped by means of a brake, which generally consists of brake shoes provided with a suitable friction lining and surrounding a drum, on which they tighten when released. Substantial amount of energy is expended in the process. Of late, regenerative braking systems have been developed, which will permit the partial recovery of the energy expended.
Previous status
One of the sugar mills had DC drives for their flat bottom high speed centrifugal of 1200 kg/h capacity used for A - massecuite separation. ! Benefits of regenerative type continuous centrifuge ! Reduction in centrifuge power consumption These centrifugal had the conventional type of braking system, with no provisions for recovery of energy expended during changeover to low speed or discharging speed. The power consumption in these centrifugal were of the partially recover the energy expended during the discharge cycle.

The regenerative type of braking system was installed for all the flat bottom high speed centrifugal used for A - massecuite curing.

One of the most important characteristics of a regenerative braking system in an electric centrifugal is that, it permits the partial recovery of the energy expended, during the discharge cycle. With AC current, this is obtained by means of a motor of double polarity, which can work with half the normal number of poles. This regeneration is effective only down to about 60% of the normal speed.
However, this corresponds to more than half the stored energy. With DC motors, a much greater proportion of the stored energy can be recovered. With the present day motors, supplied with thyristor controls, regenerative braking is obtained by reversing the direction of the excitation current, as the supply is unidirectional. The motor, thus, works as a generator and the power generated (by recovery of energy during braking)is fed back into the system.
Implementation status, problems faced and time frame

The regenerative type of braking system was installed for one of the flat bottom DC motor driven high-speed centrifugal on a trial basis. Once, the satisfactory and stable operating parameters were achieved, it was extended to the remaining centrifugal also. There were no particular problems faced during the implementation of this project. The implementation of the project was carried out over two sugar seasons.
Benefits achieved
The regenerative braking system recovers about 1.34 kW/100 kg of sugar produced, during the discharge cycle and feeds it back into the system. Hence, the net power consumption of the centrifugal with the regenerative braking system is only 0.66 kW/100 kg of sugar produced.
Financial analysis
This project was implemented as a technology up gradation measure.
Replication Potential
This project has a high replication potential of implementation in more than 75 plants in the country.
Case study 5
Installation of Jet Condenser with External Extraction of Air

Background
The evaporators and pans are maintained at low pressures, through injection water pumps. These are one of the highest electrical energy consumers in a sugar mill. The multi-jet condenser, which are presently used in the sugar plants, do both the jobs of providing the barometric leg, as well as removing the non-condensable. The water injected into these condensers comprise of, spray water for condensation and jet water for creating vacuum. The water used for condensation needs to be cool, while the jet water can be either hot or cold. So only a part of the water used in the condenser needs to be cooled. However, the vacuum levels which they give is less uniform and varies slightly with the temperature of the hot water, which in turn depends on the quantity of vapour to be condensed. With the expansion plans, for increasing the installed crushing capacity to 4000 TCD, the installation of jet condensers with external air extractor was considered. They have higher water consumption and require more powerful pumps, with consequent high electric power demand. To overcome these disadvantages, the latest trend among the major sugar mills has been to replace these multi-jet condensers with a jet condenser with external extraction of air.
Previous status
One of the sugar mills with an installed capacity of 2500 TCD, had the multi-jet condensers for the creation of vacuum and condensation of vapours, from the vacuum pans and evaporator. There were 11 injection water pumps of 100 HP rating, catering to the cooling water requirements of these condensers. These pumps were designed to handle an average maximum crushing capacity of 3200 TCD.

Along with the expansion plans of 4000 TCD crushing capacity, the multi-jet condensers were replaced with jet condensers having external air extractor

The jet condensers with external extraction of air also work on the same principle as that of the jet condensers. The nozzle is placed at such a height that the water discharged by it can be aspirated into the condenser. Since the quantity of air is very small, the water leaves the nozzle at a temperature, practically equal to that at which it enters. The difference is not easily detectable, by a thermometer. Hence, a pump of low head can be utilized and it may be arranged, so that, it is not necessary to pump the water, leaving the water actuated ejector condenser (which is used to ensure condensation in the barometric column).For this, it is sufficient that the water level in the intermediate channel below the ejector should be about 4 m above the level in the channel at the foot of the barometric column. The water in the intermediate channel is, thus aspirated into the condenser, as soon as the vacuum approaches its normal value.

There were no problems faced during the implementation of this project, except for the initial problem of identifying the ideal layout. The entire project was taken up during the sugar off-season.
Benefits achieved
There was a significant drop in water consumption in these condensers, in spite of an increase in crushing capacity (average maximum crushing of 4800 TCD). This resulted in reduction inthe number of injection water pumps in operation. The new injection water pumping system includes - 5 nos. of 100 HP pump and 1 no. of 250HP pump. Thus, there is a net reduction in the installed injection water pumping capacity of about 350 HP (30% reduction). The actual average power consumption also has registered a significant drop of nearly 180 kW, which amounts to an annual energy saving of 5,18,400 units(for 120 days of sugar season).
Financial analysis
The annual benefits achieved are Rs.1.30 million (assuming a cogeneration system with 120days of sugar season and saleable unit cost of Rs.2.50/kWh). This required an investment ofRs.2.53 million, which had a simple payback period of 24 months.

Sugar Proposal-5: Installation of Jet condenser with External extraction of air Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -2.530 -2.530 2.973 41.93% 2.530 2.024 1.300 -0.260 1.393 0.506 1.300 0.285 0.809 0.000 1.300 0.466 0.593 0.000 1.300 0.466 0.530 0.000 1.300 0.466 0.473 0.000 1.300 0.466 0.422 0.000 1.300 0.466 0.377 0.000 1.300 0.466 0.337 0.000 1.300 0.466 0.301 0.000 1.300 0.466 0.834 0.268 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.300 1.3 2.53 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.560 1.015 0.834 0.834 0.834 0.834 0.834 0.834 0.834
Case study 6
Installation of 30 MW Commercial Co-generation Plant

Background The Indian sugar industry by its inherent nature, can generate surplus power, in contrast to the other industries, which are only consumers of energy. This is mainly possible because of the 30 % fibre content in the sugar cane used by the sugar mills. This fibre, referred to as bagasse, has good fuel value and is used for generation of the energy required, for the operation of the sugar mill. The bagasse is fired in the boiler, for producing steam at high pressures, which is extracted through various backpressure turbines and used in the process. This simultaneous generation of Commercial co-generation plant steam and power, commonly referred to as Cogeneration. Conventionally, the co-generation system was designed to cater to the inhouse requirements of the sugar mill only. The excess bagasse generated, was sold to the outside market. In the recent years, with the increasing power Demand-Supply gap, the generation of power from the excess bagasse, has been found to be attractive. This also offers an excellent opportunity for the sugar mills to generate additional revenue. Co-generation option has been adopted in many of the sugar mills, with substantial additional revenue for the mills. This also contributes to serve the national cause in a small way, by bridging the Demand- Supply gap.
Previous status
A sugar mill in Tamil Nadu operating for about 200 days in a year had the following equipment:
Boilers
! 2 numbers of 18 TPH, 12 ATA ! 2 numbers of 29 TPH, 15 ATA ! 1 number of 50 TPH, 15 ATA
Turbines
! 1 number 2.5 MW ! 1 number 2.0 MW ! 1 number 1.5 MW
Mill drives
! 6 numbers 750 BHP steam turbines ! 1 number 900 BHP shredder turbine The plant had an average steam consumption of 52%. The power requirement of the plant during the sugar-season was met by the internal generation and during the nonseason from the grid.


The plant went in for a commercial co-generation plant. The old boilers and turbine were replaced with high- pressure boilers and a single high capacity turbine. The new turbine installed was an extraction-cum- condensing turbine. A provision was also made, for exporting (transmitting) the excess power generated, to the state grid. The mill steam turbines, were replaced with DC drives. The details of the new boilers, turbines and the steam distribution are as indicated below:
Boilers
! 2 numbers of 70 TPH, 67 ATA ! Multi-fuel fired boilers Turbines 1 number of 30 MW turbo-alternator set (Extraction-cum-condensing type)
Mill drives
! 4 numbers of 900 HP DC motors for mills ! 2 numbers of 750 HP DC motors for mills ! 2 numbers of 1100 kW AC motors for fibrizer
Implementation methodology, problems faced and time frame

Two high capacity, high-pressure boilers and a 30 MW turbine was installed in place of the old boilers and smaller turbine. While selecting the turbo-generator, it was decided to have the provision for operation of the co-generation plant, during the offseason also. This could be achieved, by utilizing the surplus bagasse generated during the season, as well as by purchasing surplus bagasse, from other sugar mills and biomass fuels, such as, groundnut shell, paddy husk, cane trash etc. The shortfall of bagasse during the off-season was a problem initially. The purchase of biomass fuels from the nearby areas and the use of lignite solved this problem. The entire project was completed and commissioned in 30 months time.
Benefits
The installation of high-pressure boilers and high-pressure turbo-generators has enhanced the power generation from 9 MW to 23 MW. Thus, surplus power of 14 MW is available forexporting to the grid. The following operating parameters were achieved: Typical (average) crushing rate = 5003 TCD Typical power generation ! During season = 5,18,321 units/day ! During off-season = 2,49,929 units/day
Typical power exported to grid

During season = 3,18,892 units/day (13.29 MW/day) During off-season = 1,97,62 units/day (8.23 MW/day) 5 Typical no. of days of operation = 219 days (season) & 52 (off-season)
Financial analysis
The annual monetary benefits achieved are Rs.204.13 million (based on cost of power sold to the grid @ Rs.2.548/unit, sugar season of 219 days and off-season of 52 days). This required an investment of Rs.820.6 million. The investment had an attractive simple payback period of 48 months.
The sugar plants in India have tremendous potential for commercial cogeneration ie producing steam at a higher pressure and selling the extra power generated to the grid. The total cogeneration potential yet to be tapped in India has been estimated to be about 100 MW. The investment potential for atleast say about 50 plants is Rs 4000 million.

Sugar Proposal-6: Installation of 30 MW commercial co-generation plant Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n 820.600 656.480 204.130 -162.281 164.120 204.130 14.354 0.000 0.000 0.000 0.000 204.130 73.232 0.000 204.130 73.232 0.000 0.000 0.000 204.130 73.232 204.130 204.130 204.130 204.130 204.130 204.130 204.130 204.130 204.130 204.130 204.13 820.6 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
204.130 204.130 204.130 73.232 73.232 73.232
204.130 204.130 73.232 73.232
-820.600 366.411 189.776 130.898 130.898 130.898 130.898 130.898 130.898 130.898 130.898 -820.600 327.152 151.289 93.171 83.188 74.275 66.317 59.212 52.868 47.203 42.146
NPV (Rs. Million) IRR Basis of Calculation
176.221 18.41%

Case study 7
Installation of an Extensive Vapour Bleeding System at the Evaporators

Background
The sugar industry is a major consumer of thermal energy in the form of steam for the process. The steam consumers in the process are -evaporators and juice heaters (mixed juice, sulphited juice and clear juice).Out of these consumers, the evaporators which concentrate the juice, typically from a brix content of 10 - 11 to about 55 - 60 brix, consume the maximum steam. The evaporators are multiple effect evaporators, with the vapour of one stage used as the heating medium in the subsequent stages. In the older mills, the evaporators are triple/quadruple effect and the vapour from the first effect is used for the vacuum pans and from the second effect for juice heating. In the modern sugar mills, efforts have been taken to reduce the steam consumption. The following approach has been adopted in the boiling house for reducing the steam consumption: Increasing the number of evaporator effects the higher the number of effects, the greater will be the steam economy (i.e., kilograms of solvent evaporated per ton of steam). Typically, the present day mills, use a quintuple effect evaporator system. Extensive vapour bleeding - the extensive use of vapour coming out of the different effects of the evaporators are used for juice heaters and vacuum pans. The later the effect, the better is the steam economy in the system. Additionally, the following aspects were also considered in the cane preparation section and milling section: ! Installation of heavy duty shredders, to achieve better preparatory index (> 92+ as compared to the conventional 85+) for cane ! Installation of Grooved Roller Pressure Feeder (GRPF) for pressure feed to the mills. This allows for better juice extraction from the cane ! Lesser imbibitions water addition, on account of the better juice extraction by the GRPF, resulting in reduction of boiling house steam consumption This case study pertains to a sugar mill of 2500 TCD, where the above approach has been adopted at the design stage itself, resulting in lower steam consumption.
Conventional system
In a typical sugar mill, the most commonly used evaporators are the quintuple effect evaporators. The typical vapour utilization system in the evaporators comprises of: ! Vapour bleeding from II- or III- effect for heating (from 35 C to 70 C) in the raw (or dynamic) juice heaters ! Vapour bleeding from I- effect for heating (from 65 C to 90 C) in the first stage of the sulphited juice heater
! Exhaust steam for heating (from 90 C to 105 C) in the second stage of the sulphited juice heater ! Exhaust steam for heating (from 94 C to 105 C) in the clear juice heaters ! Exhaust steam for heating in the vacuum pans (C pans) The specific steam consumption with such a system for a 2500 TCD sugar mill is about 45to 53 % on cane, depending on the crushing rate. However, maximum steam economy is achieved, if the vapour from the last two effects can be effectively utilized in the process, as the vapour would be otherwise lost. Also, the load on the evaporator condenser will reduce drastically. Many of the energy efficient sugar mills, especially those having commercial cogeneration system, have adopted this practice and achieved tremendous benefits. The reduced steam consumption in the process, can result in additional power generation, which can be exported to the grid.
Present system
In a 2500 TCD sugar mill, the extensive use of vapour bleeding at evaporators, was adopted at the design stage itself. The plant has a quintuple-effect evaporator system. This system comprises of: ! Vapour bleeding from the V- effect, for heating (from 30 C to 45 C) in the first stage of the raw juice heater ! Vapour bleeding from the IV- effect, for heating (from 45 C to 70 C) in the second stage of the raw juice heater ! Vapour bleeding from the II- effect, for heating in the A-pans, B-pans and first stage of sulphited juice heater ! Vapour bleeding from the I- effect, for heating in the C-pans, graining pan and second stage of sulphited juice heater and Exhaust steam for heating in the clear juice heater However, to ensure the efficient and stable operation of such a system, the exhaust steam pressure has to be maintained uniformly at an average of 1.2 - 1.4 ksc. In this particular plant, this was being achieved, through an electronic governor control system for the turbo-alternator sets, in closed loop with the exhaust steam pressure. Whenever, the exhaust steam pressure decreases, the control system will send a signal to the alternator, to reduce the speed. This will reduce the power export to the grid and help achieve steady exhaust pressure and vice-versa.
Benefits achieved
The installation of the extensive vapour utilization system at the evaporators has resulted in improved steam economy. The specific steam consumption achieved (as % cane crushed) at various crushing rates are as follows: ! ! ! ! At 2500 to 2700 TCD : 41% on cane At 2700 to 2800 TCD : 40% on cane At 2800 to 3000 TCD : 39% on cane At 3000 TCD and above : 38% on cane
Thus, the specific steam consumption (% on cane) is lower by atleast 7%. This means a saving of 3.5% of bagasse percent cane (or 35 kg of bagasse per ton of cane crushed).
Financial analysis
The annual benefits on account of sale of bagasse (@ Rs.350/- per ton of bagasse and 120days of operation) works out to Rs.4.50 million. This project was installed at the design stage itself. The actual incremental investment, over the conventional system, was not available. Note :In another sugar mill of 5000 TCD, the same project was implemented. The annual savingachieved was Rs.11.00 million. This required an investment of Rs.6.50 million, which had anattractive simple payback period of 8 months.
Case study 8
Installation of Variable Speed Drive (VSD) for the Weighed Juice Pump
Background
The sugarcane is crushed in the mill house, to separate the juice and the bagasse. The juice obtained from the mill house is known as raw juice. The raw juice is screened, to remove all suspended matter and any entrained fibres. The juice is at this stage, known as strained juice. The strained juice is then sent to a weigh scale, from where it gets transferred to a weighed juice tank. This weighed juice is passed through the primary/ raw juice heaters to the sulphiters, with the help of weighed juice pumps. In the sulphiter, SO2 is injected continuously for colour removal. The flow of the weighed juice to the sulphiters through the juice heaters, has to be maintained at a steady flow rate, to achieve uniform heating and quality.
Previous status
In a 2600 TCD sugar mill, there was a weighed juice pump operating continuously to meet the process requirements. The pump had the following specifications: ! Capacity : 27.77 lps ! Head : 45 m ! Power consumed : 23 kW Benefits of variable speed drive for weighed juice pump ! Reduction in juice pump power consumption ! Steady juice flow to juice heaters and Sulphitor ! Better quality of sulphitation The flow from the weighed juice tank was not uniform. On one hand, the tank was getting emptied, whenever the time between the tips of the weigh scale was more. On the other hand, whenever the time between the tips was less, the level of juice in the tank builds-up. The tip of the weigh scale is governed by, the cane crushing rate and also the quality (juice content)of cane. Moreover, the pump was designed for handling the maximum cane-crushing rate. The maximum head requirement is only 25 m (equivalent to 2.5 ksc), while the pump had a design head of 45 m. This also contributed to the excess margins in the pump, leading to operation with recirculation control. Hence, to keep the juice flow smooth and avoid the tank from getting emptied, the pump was operated with recirculation control. The pressure in the juice heater supply header is maintained by periodically throttling and adjusting the control valve in the recirculation line. The operations of a centrifugal pump with valve control or recirculation are energy inefficient methods of capacity control, as energy is wasted in pumping more quantity, than is actually desired. In the above context, it is advisable to have a uniform flow of juice and also avoid wastage of energy through re-circulation. This can be achieved in an energy efficient manner, by varying the RPM of the pump.

The plant team decided to conduct trials with a suitable variable speed mechanism for the weighed juice pumps. A variable speed system will help achieve the RPM variation of the pump and exactly match the varying capacity requirements.

The installation of a variable speed system, will not only ensure a consistent flow, resulting in improved quality of the product, but also, offer substantial energy savings. Among the different variable speed systems, the installation of a variable frequency drive (VFD)can result in maximum energy savings. The VFD can be put in a closed loop with the discharge pressure. This will enable constant flow of juice to the juice heater and sulphiter, irrespective of the level in the juice tank. The discharge pressure set point can be adjusted periodically, depending on the crushing rate or number of tips manually. In the new sugar mills, the number of tips any time interval between the tips is measured. This can be used by the VFD, for automatically varying the juice flow through the system, according to the rate of crushing.
Benefits Achieved
The installation of a Variable Frequency Drive for the weighed juice pump, resulted in the following benefits: ! Consistent and steady flow to the juice heaters ! Improved quality of sulphitation, as the juice flow was steady ! Reduced power consumption by an average of 11 kW (a reduction of about 30 40%). However, the installation of a VFD at a later stage, can result in maximum energy savings. The installation of a VFD, can result in the reduction of the average power consumption by atleast another 40 - 50%.
Financial Analysis
The annual energy saving achieved (with the installation of a dyno-drive) was Rs.0.236 million. The investment made was Rs 0.25 million, with an attractive payback period of 12 months. Replication Potential Every sugar plant has about 10 -12 juice pumps in operation. The potential for application for VFD exists in atleast 3 pumps. This project has been taken up only in few of the newer sugar plants. The investment potential (100 plants x Rs 0.5 million/plant) is Rs 50 million.

Sugar Proposal-8: Installation of variable speed drive(VSD) for the weighed juice pump Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.250 -0.250 0.698 75.44% 0.250 0.200 0.240 0.014 0.201 0.050 0.240 0.068 0.137 0.000 0.240 0.086 0.110 0.000 0.240 0.086 0.098 0.000 0.240 0.086 0.087 0.000 0.240 0.086 0.078 0.000 0.240 0.086 0.070 0.000 0.240 0.086 0.062 0.000 0.240 0.086 0.055 0.000 0.240 0.086 0.154 0.050 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.240 0.24 0.25 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.226 0.172 0.154 0.154 0.154 0.154 0.154 0.154 0.154

Case study 9
Install Nozzle Governing System for Multi Jet Condensers

Background
Sugar Syrups are normally boiled at 0.15 bar absolute pressure generating water vapours at 52 degree C saturation temperature. Each Sugar factory releases 30 - 200 Ton Vapours through 5 - 30 boiling vessels called Vacuum Pans. Latent Heat of these vapours is absorbed by cold water sprayed in the individual Condenser attached to each vessel. Air and non-condensable gases are removed by inbuilt Water Jet Ejectors of the Condenser. Temperature of water increases due to absorption of Latent Heat of the Vapour. Either Cooling Tower or Spray Pond cools this heated water by transferring this heat to ambient air by heat and mass transfer. The Condenser consists of multiple Spray and Jet Nozzles. Spray & Jet Nozzles are primarily needed for condensation and for noncondensable gas/air ejection through tail pipe for the creation of vacuum in the Pan. The cold water flowing in from Spray-Pond/Cooling Tower is supplied to the Condenser by Injection Pumps under pressure for the said purpose.
Conventional Systems
Following methods are adopted to control the flow of water in the Condenser to maintain correct vacuum and reduce consumption of water. Both the methods use pressure governing to regulate water flow.
Single Valve Control

A common control valve regulates pressure to both Jet & Spray Nozzles. Control valve starts regulating water pressure when both vapour and non-condensable gases load are simultaneously within limits of the Condenser. Any increase in either vapour or air load beyond Condenser capacity at reduced pressure will lead to 100% opening of valve. Thus vacuum is maintained with set values.
Double Valve Control

Two separate control valve regulate the pressure of Jet & Spray Nozzles separately. At lower vapour load the Spray Nozzles control valve starts regulating the water pressure. Similarly at lower non-condensable gases load its control valves saves water and controls vacuum by lowering jet box pressure. Any increase in vapour or air load beyond Condenser capacity at reduced pressure will lead to 100% opening of that valve. Thus vacuum is maintained within the set values.
Drawbacks in Conventional Systems

The efficiency of Condenser is reduced due to loss of pressure Head and lowering in Spraying Pressure owing to throttling of valve and the basic purpose of the equipment to create the desired vacuum fails. The vapour and air load variation in Condenser is 0 to 125% of designed capacity separately. Initially, air load is more, in the middle vapour load more and by the end there is no air/ vapour load. So Condensers requirement varies from time to time.
Proposed nozzle governing system

Spray & Jet Nozzles should always work at high differential pressure to achieve mist formation (for condensing) and impact (air extraction). In the proposed automation system, water supply is controlled by opening or closing of number of Spray & Jet Nozzles. So a Nozzle always works at high pressure and efficiency. Here all the Nozzles are transferring entire pressure energy into the Condenser resulting in good efficiency even at 15% capacity. Here there is no loss of energy in the throttling. where almost 75% energy loss takes place after the valve at 50% flow rate (92% Energy loss at 25% flow rate). So nozzle governing system is far superior then controlling system.
Advantage in this system

The nozzle governing system for Multi-jet Condenser will ensure optimum utilization of hydraulic energy of water provided to it by the Pumps. It also ensures best Condenser efficiency even at 25% load.

In a sugar plant in north India, a nozzle governing system was introduced for controlling the water flow to the condenser. This Plant was consuming 1150 kWh of Power at Cooling & Condensing System, which has now been brought down to 450 kWh, after the installation.

There was a substantial reduction in power consumption of the injection water pumps. The power consumption of injection with pumps reduced from 1150 units/ton to 450 units/ton.
Financial Analysis
The annual saving achieved on account of the automation system resulted in Rs 19.0 millions. The investment made was Rs 5.0 millions, which was paid back in 3 months.


Sugar Proposal-9: Install Nozzle governing system for Multi Jet condensers Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -5.000 -5.000 65.408 265.96% 5.000 4.000 19.000 5.381 13.619 12.160 1.000 19.000 6.458 12.543 9.999 0.000 19.000 6.816 12.184 8.672 0.000 19.000 6.816 12.184 7.743 0.000 19.000 6.816 12.184 6.913 0.000 19.000 6.816 12.184 6.173 0.000 19.000 6.816 12.184 5.511 0.000 19.000 6.816 4.921 0.000 19.000 6.816 4.394 0.000 19.000 6.816 3.923 19.000 19.000 19.000 19.000 19.000 19.000 19.000 19.000 19.000 19.000 19 5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
12.184 12.184 12.184
Case Study 10
Installation of Fully Automated Continuous Vacuum Pans for Curing

Background
The vacuum pan is vital equipment, used in the manufacture of sugar. The concentrated syrup coming out of the evaporator at around 60-65 Brix is further concentrated in these pans. This is a critical process for the production of good quality sugar and involves removal of water and deposition of sugar molecules on the nuclei. Massecuite boiling is conventionally carried out by batch process in the Indian sugar industry. These pans are characterized by the following: ! The hydrostatic head requirement is high ! Higher hydrostatic heads necessitate higher massecuite boiling temperatures, which aid colour formation ! Massecuite looses its fluidity, especially towards the end of the batch cycle ! Higher boiling point elevation results in lower heat flux, for a given steam condition ! Consumes very high steam, by design - due to the non-uniform loading cycle, unloading cycle and pan washing cycle times Of late, the continuous vacuum pans have been developed and installed in many sugar plants with substantial benefits. This case study highlights the benefits of installing a continuous vacuum pan for curing.
Previous status
One of the sugar mills, had the following pan configuration for the massecuite curing:. Batch vacuum pans of 40 Tons holding capacity (11 nos.) ! 5/ 6 nos. for A massecuite ! 4 nos. for B massecuite ! 2/ 3 nos. for C massecuite Batch vacuum pans of 80 Tons holding capacity (3 nos.) ! 2 nos. for A massecuite ! 1 no for B massecuite Continuous vacuum pan of 135 tons holding capacity ! 1 no. for C massecuite

The following operational parameters were observed: ! The steam consumption was erratic, as it was dependent on various factors, such as loading time, unloading time, pan washing and cleaning. ! The evaporation rates are erratic - they are high during start-up and progressively reduces towards the end of the batch cycle ! The S/V ratio is low (~ 6) ! Hydrostatic head requirement is high (about 3.0 - 3.5 m) ! Average retention time is very high ! Requires very frequent cleaning of the pan body ! Less adaptable to automation

Consequent to the capacity up gradation to 8000 TCD, continuous vacuum pans were installed for A- massecuite, B- massecuite and C- massecuite curing.

A continuous operation of a vacuum pan means, a complete integrated system comprising of the sub-systems, covering total control of the inputs and outputs. The operation of the pan in a continuous manner makes it easy for automation and installing control systems. The latest continuous vacuum pans are being installed with predictive control systems, which ensure a steady and more consistent operation of the pan. Besides these automation facilities, the continuous vacuum pans have many advantages: ! There is no heat injury to the sugar crystal, due to reduced hydrostatic head and lower boiling point elevation ! The use of smaller diameter tubes provides greater heating area per unit of calendria. This aspect gives more flexibility on thermal conditions of the steam that can be used. ! This also allows maximum evaporation rates, commensurate with maximum possible crystallization rates ! Facilitates the use of low pressure steam, on account of increased transmission coefficient, brought about by higher circulation rate of massecuite ! Reduction in steam consumption by 10-20%, as compared to the batch pans ! On account of reduction in steam consumption, the condensing and cooling water power consumption also gets reduced ! There is no draining, rinsing as in batch process, which cause thermal losses and dilution ! The coefficient of variation of crystal size is equivalent to or better than in batch pans, on account of plug flow conditions and multi-compartment design
! The continuous vacuum pan is automated, resulting in simpler operation. They are compact and hence, the space requirement is much lower The continuous vacuum pans have gained immense popularity on account of the salient features mentioned above.

During the expansion stage, the batch pans were replaced in phases and the new configuration is as follows Continuous vacuum pans of 40 tons holding capacity (5 nos.) ! 1 no. for A massecuite ! 2 nos. for B massecuite ! 2 nos. for C - massecuite Continuous vacuum pans of 80 tons holding capacity (2 nos.) ! 2 nos. for A - massecuitev Continuous vacuum pan of 135 tons holding capacity (4 nos.) ! 2 nos. for A massecuite ! 1 no. for B massecuite ! 1 no. for C massecuite The experience of having operated a continuous vacuum pan for the C- massecuite, enabled the operators to gain first hand working knowledge and trouble-shooting skills. Hence, there were no particular problems faced, during the phased replacement of the remaining batch vacuum pans, with continuous vacuum pans. The replacement of all the batch vacuum pans with continuous vacuum pans was completed in two sugar seasons.
Financial analysis
The annual equivalent energy saving achieved was Rs.19.26 million (for 120 days sugarseason and bagasse cost of Rs.250/MT). This required an investment of Rs.100.00 million,which had a simple payback period of 63 months.
The installation of continuous vacuum pans through a proven project has been taken up on lyin about 20% of the plants. The potential of replication is therefore very high. However, the commercial viability of the project is high, only in case of plants with commercial cogeneration.


Sugar Proposal-10: Installation of fully automated continuous vacuum pans for curing Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -100.000 1.128 12.36% 100.000 80.000 19.260 -21.790 36.652 20.000 19.260 -0.265 15.566 0.000 19.260 6.910 8.791 0.000 19.260 6.910 7.849 0.000 19.260 6.910 7.008 0.000 19.260 6.910 6.257 0.000 19.260 6.910 5.587 0.000 6.910 4.988 0.000 6.910 4.454 0.000 19.260 6.910 3.977 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.260 19.26 100 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-100.000 41.050 19.525 12.350 12.350 12.350
12.350 12.350 12.350 12.350 12.350
Foundry
Energy Conservation in Foundry
Introduction There are more than 5,000 foundry units in India, having an installed capacity of approximately 7.5 million tonnes per annum. The majority (nearly 90%) of the foundry units in India falls under the category of small-scale industry. The foundry industry is an important employment provider and provides direct employment to about half a million people. A peculiarity of the foundry industry in India is its geographical clustering. Typically, each foundry cluster is known for catering to some specific end-use markets. For example, the Coimbatore cluster is famous for pump-sets castings, the Kolhapur and the Belagum clusters for automotive castings and the Rajkot cluster for diesel engine castings. Cupola is the predominant melting furnace employed more than 6000 are cupola based foundry units operating in small scale sector. The majority of cupolas in the cluster are of conventional type. Divided blast cupola (DBC) can be found in some of the foundry units. Most of the foundries use low ash coke. A number of foundry units (about 40%) have electric induction furnace, which is used to manufacture graded castings and for duplexing with cupola. The other units have rotary furnaces. Various studies undertaken and the data collected indicate the annual energy saving potential in Indian foundry industry is about 10-12% of the total energy bill. This includes short term and medium term projects, which have payback period of less than 2 years. If the long term energy saving projects are considered the energy saving potential in Indian foundry industry is as high as 15 20% of the total energy consumption. Energy Intensity in Indian Foundry industry Indian foundry industry is very energy intensive. The energy input to the furnaces and the cost of energy play an important role in determining the cost of production of castings. Major energy consumption in small foundry industry, coke is used for metal melting in the Cupola furnaces. In medium and large scale foundry industry is the electrical energy consumption for induction and Arc furnaces. Fuel oil is used for heat treatment furnaces. The energy costs contributes about 25% of the manufacturing cost in Indian foundry industry. The total energy cost in Indian foundry industry is about Rs 4500 Crores. ENERGY CONSUMPTION PATTERN Electrical energy consumption Melting and holding furnaces are the major electrical energy consumers. The other electrical energy users include sand plant, major utilities such as compressors, auxiliary cooling water systems and lighting. Thermal energy consumption In Cupola furnaces, coal/coke is used as fuel for metal melting. Typical coke consumption in cupola furnace is about 135 kg/MT of molten metal. Fuel oil is used
for metal melting in rotary furnaces. Specific consumption of fuel oil is about 135 lit/MT of molten metal. Heat treatment furnaces and ladle preheating furnaces are the other major users in foundry industry.
Case study - 1
Install Kwh Indicator cum Integrator for Induction Furnace

Background
Medium frequency induction furnace is used for metal melting. The specific energy consumption pattern for each batch is monitored. There is a huge variation in the specific energy consumption. The variation in specific energy consumption is due to operational practices such as over shoot in metal temperature, holding of molten metal in the melting furnace due to break down in the moulding line, metal waiting for tapping and furnace waiting for raw material etc. The lowest specific energy consumption is achieved in few batches due to adoption of the best operational practices incidentally in those batches. The latest trend is installing KWh Integrator for the furnaces. The power consumption required for the melting has to be established based on the lowest specific energy consumption achieved in the past. The established power consumption should be set as a target for each melt. The KWh integrator measures the power consumption as the melting progresses and indicates the units available to complete the batch as per the target. The KWh Integrator gives the signal to the operators to tap the molten metal within the target power consumption. The advantages of installing Kwh indicator cum integrator for the furnace are as follows: ! The furnace operators get an opportunity to take necessary steps online to complete the metal tapping within set target power consumption ! The lowest specific power consumption in the furnace for metal melting could be sustained
Previous status
Medium frequency furnace is used for cast iron melting. The variation in per ton of metal melted is between 50 to 80 units. The lowest specific power consumption achieved is 650 units/ton of molten metal.

KWH indicator cum integrator was installed for the medium frequency furnace. The power consumption per ton of molten metal is established based on past records. Target for power consumption per ton of molten metal is set as 650 units/ton.
Implementation methodology
The KWH indicator and integrator could be installed with very minimal downtime of the furnace. The indicator should be provided in the prominent location, visible to all the operators.

Benefits
The variation in power consumption of the furnace is minimised. Atleast 20 kWH /batch reduction in power consumption was achieved.
Financial analysis
This amounted to an annual monetary saving (@ Rs 3.50/unit) of Rs 0.6 million. The investment made was Rs 0.20 million. The simple payback period for this project was 4 Months. Replicating Potential in Indian foundry industry There are about 5,000 foundry units are in operation in India. About 10% of the foundry units are utilising induction furnace for metal melting. Atleast 50% of units, utilising induction furnace for metal melting can incorporate the KWH indicator cum integrator for monitoring. The energy saving potential using KWH indicator is about Rs 15 Crores in Indian small scale foundry industry. The investment opportunity for KWH indicator is about Rs 10 Crores.

Foundry Proposal-1: Install Kwh indicator cum integrator for induction furnaces Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 2.037 213.48% 0.200 0.160 0.600 0.158 0.395 0.040 0.600 0.201 0.318 0.000 0.600 0.215 0.274 0.000 0.600 0.215 0.385 0.245 0.000 0.600 0.215 0.218 0.000 0.600 0.215 0.195 0.000 0.600 0.215 0.174 0.000 0.600 0.215 0.155 0.000 0.600 0.215 0.139 0.000 0.600 0.215 0.124 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.6 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.442 0.399 0.385
0.385 0.385 0.385
0.385 0.385 0.385
Case study 2
Install Medium Frequency Induction Furnace of Main Frequency Furnace

Background
Induction furnace can be basically classified into two types depending upon the operating frequency. ! Medium frequency furnace over 500 Hz ! Main frequency furnace 50 Hz Heat efficiency of medium frequency furnace is higher than that of main frequency furnace. The medium frequency furnace can be operated with three times higher power density than the main frequency furnace. This speeds up the melting rate, reduces the cycle and the associated heat losses. This leads to increased operating efficiency of the furnace. Main frequency furnace has higher heat loss, where as medium frequency furnace has higher electrical loss. This is explicable from the fact that low frequency furnace has lower power density at melting and larger heat loss due to long melting time. While medium frequency furnace has higher power density. Heat loss is less due to short melting time and primary electrical loss is higher due to frequency conversion. The other advantages of medium frequency furnace over main frequency furnaces are ! Absence of molten heel and hence increased productivity ! Reduced start up time ! Less melting time and hence reduced losses
Previous status
In a small scale foundry industry a main frequency furnace of capacity 1 ton/batch was in operation. The specific power consumption of main frequency furnace was 725 units/ton of molten metal.

The main frequency furnace was replaced with medium frequency furnace of the same capacity. The specific power consumption of metal melting has been reduced to 650 units/ton of molten metal.

The implementation of the project resulted in reduction of specific power consumption of about 75 units/ton. This saving annually amounted to about 2.25 Lakh units.

Financial analysis The total benefits amounted to a monetary annual savings of Rs 0.79 million. The investment made was around Rs 2.0 million. The simple payback period for this project was 31 Months.

Foundry Proposal-2: Install medium frequency induction furnace of main frequency furnace Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 2.725 275.76% 0.200 0.160 0.790 0.226 0.564 0.504 0.040 0.790 0.269 0.521 0.415 0.000 0.790 0.283 0.361 0.000 0.790 0.283 0.322 0.000 0.790 0.283 0.287 0.000 0.790 0.283 0.257 0.000 0.790 0.283 0.507 0.229 0.000 0.790 0.283 0.507 0.205 0.000 0.790 0.283 0.507 0.183 0.000 0.790 0.283 0.507 0.163 0.790 0.790 0.790 0.790 0.790 0.790 0.790 0.790 0.790 0.790 0.79 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.507 0.507 0.507 0.507
Case study - 3
Install Spectro Meter for Analysing the Molten Metal

Background
Molten metal analysis is an important process through which, the quality of the castings is established from material composition point of view. Typically in a small & medium scale foundry industry the molten metal sampling is done and then tested in the laboratory. The metal sampling and testing takes about 30 min. This adds to the holding time of the molten metal in the furnace. Melting and holding time of molten metal can be reduced by reducing the time taken for metal analysis. This can be achieved by installing a spectrometer for analyzing the quality of molten metal. The spectrometer analysis takes only about 5-10 mins. This leads to significant reduction in holding time of the molten metal in the furnace and hence reduction in energy consumption.
Present status
In one of the small scale foundry industry laboratory test method is followed for testing the molten metal. Time taken for the molten metal testing is about 15-20 min.

The spectrometer was installed for molten metal analysis. This has minimised the time taken for the analysis by 60-70%.
Benefits
This has resulted in overall reduction in metal holding time and hence reduction in energy consumption of about 10 units per ton of molten metal.
Financial analysis
The benefits amounted to a monetary annual savings of Rs 0.20 million. The investment made was around Rs 0.80 million. The simple payback period for this project was 46 Months.


Foundry Proposal-3: Install spectro meter for analyzing the molten metal Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.800 0.640 0.200 -0.158 -0.800 0.358 -0.800 0.175 18.54% 0.320 0.160 0.200 0.014 0.186 0.148 0.000 0.200 0.072 0.091 0.000 0.200 0.072 0.082 0.000 0.200 0.072 0.073 0.000 0.200 0.072 0.065 0.000 0.200 0.072 0.058 0.000 0.200 0.072 0.052 0.000 0.200 0.072 0.046 0.000 0.200 0.072 0.041 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.2 0.8 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.128 0.128 0.128 0.128
0.128 0.128 0.128 0.128
Case study 4
Install Online Shot Blasting Machine for Cleaning

The Returns Background
The returns such as runners and risers from the moulding section is again utilised for melting. Typically in a small scale foundry industry the quantity of runners and risers accounts for about 30-40% of the quantity of total feed into the furnace. The returns contain green sand, which leads to increased slag formation. Also if the feed is rusted, the rust leads to slag formation. Before tapping the molten metal for the casting process, the slag formed on the top of the furnace is removed. The slag formation results in increased metal loss and also energy loss. The energy consumption due to slag (1.2 units/kg of slag) is two times the power consumption of the metal melting. The metal loss in the furnace is about 4-5% and the energy loss is about 2-3% of the energy input to the furnace for melting. The slag formation in the induction furnace can be minimised by cleaning the feed to the furnace. This can be achieved by shot blasting the feed materials, specifically the returns before fed into the furnace.
Previous status
The returns from the molding section are directly used for the melting applications. The metal loss is about 6%. The heat loss is about 125 units / batch of metal melted. This contributes 2.5-3% of the total energy input to the furnace.

Shot blasting machine was installed for cleaning the returns and fed into the furnace for melting process.
Benefits
The slag formation was minimized and hence metal loss was reduced from 6% to 2.53%. The power consumption is reduced by 8-10 units/batch.
Financial analysis
This amounted to an annual monetary saving (@Rs 3.50/unit) of Rs 0.52 million. The investment made was around Rs 2.00 million. The simple payback period for this project was 46 Months.


Foundry Proposal-4: Install online shot blastingmachine for cleaning Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -2.000 -2.000 0.511 19.55% 2.000 1.600 0.520 -0.387 0.810 0.400 0.520 0.043 0.380 0.000 0.520 0.187 0.237 0.000 0.520 0.187 0.212 0.000 0.520 0.187 0.189 0.000 0.520 0.187 0.169 0.000 0.520 0.187 0.151 0.000 0.520 0.187 0.135 0.000 0.520 0.187 0.120 0.000 0.520 0.187 0.333 0.107 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.52 2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.907 0.477 0.333 0.333 0.333 0.333 0.333 0.333 0.333
Case study - 5
Monitor Temperature of Molten Metal Continuously Suing Online Infrared Thermometer

Background
Molten metal temperature is an important parameter for the casting process. Lower molten metal temperature will lead to defective castings. The tendency of the operators of the furnace is to maintain higher molten metal temperature than the requirement considering all the temperature drops during metal transfer. The temperature of molten metal in the furnace is monitored periodically using contact type thermocouple. This is done to ensure that the temperature of the molten metal is more than the requirement. This temperature measurement at intervals using contact type thermocouple leads to overshoot in temperature. The overshoot in molten metal temperature leads to increased power consumption in the furnace. The latest trend is to install online infrared pyrometer. The pyrometer continuously monitors the molten metal temperature and can be prominently displayed. This facilitates tapping of molten metal within the required temperature and minimise overshoot in temperature.
Previous status
Temperature requirement for molten metal is 1460oC. The molten temperature overshoots beyond 1480oC.

Online infrared pyrometer was installed for continuously monitoring the molten metal temperature. The overshoot in temperature of molten metal was avoided.
Benefits
Eliminates overshoot in molten metal temperature. Reduction in energy consumption of about 5 units/ton of molten metal is achieved.
Financial analysis
The total benefits resulted to an annual saving of Rs 0.20 million. The investment made was Rs 0.20 million. The simple payback period for this project was 12 Months.


Foundry Proposal-5: Monitor temperature of molten metal continuously suing online infrared thermometer Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 0.587 78.30% 0.200 0.160 0.200 0.014 0.166 0.040 0.200 0.057 0.114 0.000 0.000 0.200 0.200 0.072 0.072 0.091 0.082 0.000 0.000 0.200 0.200 0.072 0.072 0.073 0.065 0.000 0.200 0.072 0.058 0.000 0.200 0.072 0.052 0.000 0.200 0.072 0.046 0.000 0.200 0.072 0.041 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.2 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.186 0.143 0.128 0.128 0.128 0.128 0.128 0.128 0.128 0.128
Case study 6
Install Waste Heat Recovery System for the Stress Relieving Furnaces to Recover Heat from the Exhaust Flue Gas
Back ground
In the Stress relieving furnace the castings are heated to a temperature of about 550oC and then cooled in atmospheric air. Light Diesel Oil is used as fuel in these furnaces. The exhaust flue gas from the Stress relieving furnace is directly sent to atmosphere. The Exhaust flue gas temperature is in the range of 615-625oC. The percentage of heat loss through exhaust flue gas is in the range of 58-60 %. There is a good potential to save energy by recovering heat from the exhaust flue gas. This can be achieved by installing an air preheater and preheating the combustion air supply to the stress relieving furnace. In the air preheater the combustion air supply can be preheated to a temperature of about 180oC. After air preheater the flue gas can be sent to atmosphere.

Air preheater was installed for preheating the combustion air supply. The combustion air was preheated to a temperature of about 180oC.
Benefits
Preheating of combustion air has resulted in about 4% reduction in fuel consumption.
Financial analysis
The total benefits amounted to a monetary annual savings of Rs 0.32 million. The investment made was around Rs 0.30 million. The simple payback period for this project was 12 Months.


Foundry Proposal-6: Install Waste Heat Recovery System for the stress releiving furnaces to recover the heat from the exhaust flue gas Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.300 -0.300 0.953 83.04% 0.300 0.240 0.320 0.029 0.291 0.260 0.060 0.320 0.093 0.227 0.181 0.000 0.320 0.115 0.146 0.000 0.320 0.115 0.130 0.000 0.320 0.115 0.116 0.000 0.320 0.115 0.104 0.000 0.320 0.115 0.093 0.000 0.320 0.115 0.083 0.000 0.320 0.115 0.074 0.000 0.320 0.115 0.066 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.320 0.32 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.205 0.205 0.205 0.205 0.205
0.205 0.205 0.205
Case study -7
Segregate High Pressure and Low Pressure Compressed Air Users

Background In foundry industry the compressed air pressure requirement varies depending upon the users. For pneumatic actuators and cylinders the compressed air pressure requirement is about 5-5.5 kg/cm2. For other applications such as cleaning the compressed air pressure is not the criteria. The volume of air flow is the criteria and not the operating pressure. The maximum compressed air requirement is 2.5-3 kg/cm2. In compressed air systems, the power consumption of a compressor is directly proportional to the operating pressure of the compressor. The compressor power consumption increases with increase in pressure and vice versa. Hence there is a good potential for energy saving by segregating the high pressure and low-pressure compressed air (cleaning air) users and supplying compressed air at lower operating pressure.
Present status
In one of the foundry industry compressed air pressure is maintained at 6.5 kg/cm2 in the main header. Majority of the compressed air is utilized for the pneumatic operations in the core making m/cs, pneumatc lifts, pneumatic grinders and cleaning i operations etc. The total number of cleaning points in core making sections is 10 and that in the Aluminium Die Casting (ADC) section is 18. The quantity of compressed air utilized for cleaning operation is estimated as 200 cfm in the core-making area and about 250 cfm in the Aluminium Die Casting section.

The high pressure & low-pressure (for cleaning application) compressed air users were segregated by laying a separate compressed air line. Compressor of capacity 500 cfm was dedicated for the cleaning applications and operated at a pressure of 3.0 kg/cm2.
Benefits
Implementation of the project resulted in atleast 30% reduction in compressor power consumption.
Financial analysis
Implementation of the proposal resulted in monetary benefit of Rs 0.36 million. Investment made was Rs 0.3 million. The payback period was 11 Months.

Foundry Proposal-7: segregate the high pressure and low pressure compressed air users Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.300 -0.300 1.098 92.41% 0.300 0.240 0.360 0.043 0.317 0.283 0.060 0.360 0.108 0.252 0.201 0.000 0.360 0.129 0.164 0.000 0.360 0.129 0.147 0.000 0.360 0.129 0.131 0.000 0.360 0.129 0.117 0.000 0.360 0.129 0.231 0.104 0.000 0.360 0.129 0.093 0.000 0.360 0.129 0.083 0.000 0.360 0.129 0.074 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.36 0.3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.231 0.231 0.231 0.231
0.231 0.231 0.231
Air Compressors
Energy Conservation in Air Compressors
Introduction
Compressed air, also called as the fourth utility plays a vital role in the manufacturing process of any industry. The generation of compressed air is one of the major energy consuming activity taking place in any industrial operation. Often Compressors are referred to as Power Guzzlers. An approximate estimate indicates that around 1500 MW is consumed nationwide, just to compress air in industry. Moreover, the use of compressed air is increasing linearly with our industrial growth. This presents a worthy target for the application of energy conservation technologies. Many energy conscious engineers exposed to factory environments believe that, atleast 10% of this can be saved. Therefore, it is in the national interest that compressed air be generated and used with efficiency & economy, wherever possible. This not only results in energy savings, but also a saving in rupees. Air compressors form a significant energy consumer in the following industries: ! ! ! ! ! ! Foundry Automobile & auto components Textile Cement Paper Synthetic fibre, etc.
In this section, several actual implemented case studies in air compressors and its auxiliaries are highlighted.

Case study No. 1
Replace Old Inefficient Compressors with New Energy Efficient Compressors

Background Air compressors are very commonly used in engineering Industry. In a typical engineering Industry, the power consumption of the air compressors is as high as 30 % of the total energy consumed. The most common type of compressors used in the industry is the reciprocating compressor. Off late, there is a growing inclination for companies to go in for screw compressors, mainly due to their flexibly in operation as well as due to their low noise characteristics. Centrifugal compressors are used for high capacities or base loads, greater than 1500 CFM. A typical comparison between the different types of compressors at 7-kg/cm2 pressure, is given below. Description Specific Power (kW/m3/min) Specific Power (kW/Cfm) Reciprocating 4.9 0.139 Centrifugal 4.65 0.132 Screw 5.8 0.164
Whenever there is a significant variation in the power consumption of the compressor from the above-mentioned values, it signifies that the compressor may be energy inefficient. The reasons for higher specific power consumption can be the age of the compressor, wear and tear of the pistons and cylinders, improper maintenance etc. In such cases, if the compressor is noted to be energy inefficient, it is suggested to go for the replacement of the compressor with a new one. The choice of the type of compressor depends on the application. A case study pertaining to the same is discussed below.
Previous status
The following observations made with respect to a reciprocating compressor in an engineering unit. Capacity test was conducted on the compressor. The details about the rated volume of the compressor against its actual delivered volume with the power consumption were (@ 6 kg/ cm2) ! Rated volume (Cfm) ! Actual volume (Cfm) ! Power consumption (KW) : : : 744 565 103
It was observed that the volumetric efficiency of the compressor was about 75% and that the specific power consumption (SEC) was 0.182 kW/cfm. As mentioned in the table earlier, the typical norm for power consumption of an air compressor operating at 7.0-kg/cm2 pressures is 0.14 kW/cfm. Similarly, the typical power consumption of a compressor operating at 6.0-kg/cm2 pressure should be 0.12 kW/cfm.

There was an option to replace the existing reciprocating compressor with an energy efficient compressor either of the reciprocating type or of the screw type. Since the compressor was catering to a steady base load and since the comparative capital investment was lower for a reciprocating compressor, the existing compressor was replaced with new energy efficient reciprocating compressor, having a lower SEC of 0.13 kW/cfm.
Project Implementation Strategy

The project was implemented during the preventive maintenance period in the plant. No stoppage of the plant was needed. The plant team did not face any problems during the implementation of the project.
Benefits
The implementation of this project resulted in reduction of energy consumption of compressors.
Financial Analysis
The replacement of the old compressor with new energy efficient compressor resulted in an annual savings of Rs.0.95 million. The investment (for new reciprocating type air compressors) amounted to Rs.1.5 million, which had a simple payback period of 20 Months
The replacement of old compressors with new energy efficient compressor is a project with huge replication potential. On a conservative basis, this project could be replicated in at least in about 100 installations. The investment potential for this project is Rs 100 millions.


Air Compressors Proposal-1: Replace old inefficient compressors with new Energy efficient compressors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 1.500 1.200 0.950 -0.090 -1.500 1.040 -1.500 2.412 51.31% 0.928 0.300 0.950 0.233 0.717 0.571 0.000 0.000 0.950 0.950 0.341 0.341 0.434 0.387 0.000 0.950 0.341 0.346 0.000 0.950 0.341 0.309 0.000 0.950 0.341 0.276 0.000 0.950 0.341 0.246 0.000 0.950 0.341 0.220 0.000 0.950 0.341 0.609 0.196 0.950 0.950 0.950 0.950 0.950 0.950 0.950 0.950 0.950 0.950 0.95 1.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.609 0.609 0.609 0.609
0.609 0.609 0.609
Case study No. 2
Install Variable Frequency Drive for Screw Compressor Catering to Varying Demand of Compressed Air
Background and concept
Variable speed drives eg. (Variable frequency drives) can be installed for all types of air compressors. However, they are best suited for screw air compressors. The advantages of installing VFD for screw air compressors are: ! All the compressors connected to a common system operate at a constant pressure. ! The operating pressure will be lesser than the average operating pressure of loading / unloading system. Hence, energy saving is achieved due to pressure reduction ! The compressors need not operate in load / unload condition. This saves the unload power consumption. ! Air leakages in the compressed air system also come down since the average operating pressure is less. Generally, high capacity air compressors are operated with loading /unloading control, as in the case of screw & reciprocating compressors and with inlet vane control for centrifugal compressors. In loading / unloading type of control receiver pressure is sensed and the compressor load / unload depending on the pressure. Hence a compressor operates within a band of pressure range. Generally air compressors operate with 1 kg/cm2 pressure range. By installing a VFD, it is possible to maintain a lesser bandwidth of say, 6 kg/cm2 to 6.1 Kg/cm2. The major advantage of variable speed derive is that if 4 or 5 compressors are connected to a common header, then by installation of VFD in one compressor, the energy savings achieved due to pressure reduction is cumulative in nature (power consumption comes down in all compressors). Since the average operating pressure with VFD is less (6kg/cm2 instead of 6.5 kg/cm2 as per earlier example) the air leakages in the system is also minimized. The installation of VFD facilitates in varying the speed of the compressor depending on the requirement. This completely avoids unloading and saves unload power consumption, which is normally 25 to 35 % of the full load consumption. Recently, screw compressors with built-in variable frequency drives have been introduced in the Indian market. This system facilitates fine tuning of the compressor capacity precisely to meet the fluctuating compressed air demand. It accurately measures the system pressure and adjusts the speed to automatically maintain a constant pressure.

Previous status In an auto component manufacturing unit three screw compressors of 600 Cfm were available for compressed air supply through out the plant. Another compressor of 750 cfm was available and the same was used to meet the peak demand. Among the three screw compressors in continuous use, two compressors were always on loading. One compressor was getting loaded and unloaded. The operating pressures of the compressors were ! Load pressure = 5.5 Kg/Cm2 ! Unload Pressure = 6.5 Kg/Cm2 Average loading and unloading pattern was: ! Loading = 73% ! Unloading = 27% The required compressed air pressure to be maintained in the plant was 5.5Kg/Cm2. The compressor had a power consumption of 98 kW on load and 22 kW during unload mode. Energy Saving Project Variable Frequency drive with feed back control was installed for the screw compressor, which was operating in the load unload mode. The pressure sensor provided in the main header sensed the operating pressure and gave the feed back signal to the variable frequency drive, which, in turn varied the speed of the compressor to meet the plant compressed air requirement. The operating pressure was reset to 5.5 kg/cm2 Project Implementation The installation of VFD for the compressor was done during the normal operation of the plant itself. The plant team did not face any problems in implementation of the project and in subsequent operating pressure reduction. Benefits The unloading power consumption of the screw compressor was totally eliminated. The over all operating pressure was also reduced to 5.5Kg/cm2. Financial Analysis The annual savings achieved amounted to Rs 0.43 million. The required an investment of Rs 0.7 million for installing variable frequency drive with feed back control, was paid back in 20 Months.

Air Compressors Proposal-2 : Install variable Frequency Drive for Screw compressors catering to varying demand Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.700 0.560 0.430 -0.047 -0.700 1.077 49.84% 0.426 0.140 0.430 0.104 0.260 0.000 0.430 0.154 0.196 0.000 0.430 0.154 0.175 0.000 0.430 0.154 0.156 0.000 0.430 0.154 0.140 0.000 0.430 0.154 0.125 0.000 0.430 0.154 0.111 0.000 0.430 0.154 0.099 0.000 0.430 0.154 0.089 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.43 0.7 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.700 0.477 0.326 0.276
0.276 0.276 0.276 0.276 0.276 0.276 0.276

Case study No. 3
Segregate High Pressure and Low Pressure Compressed Air Users

Background In compressors the power consumption is directly proportional to the operating pressure. The power consumption increases with increase in operating pressure and vice versa. There is a good potential to save energy by dedicating compressors for the individual users, which need compressed air at a lower pressure. This eliminates the pressure loss due to distribution and hence energy loss.
Previous status
In an engineering unit, the compressed air was generated at an operating pressure of 6.2 kg/ cm2, by operating 5 reciprocating compressors, each of capacity 1500 Cfm. The maximum pressure requirement and quantity of compressed air requirement for the some of the users are given below. Area Pressure Kg/cm2 Unit1 4.0 Receiving end Quantity Cfm 1900 600
Instrumentation 4.5 in unit 2
The fall in pressures at the receiving end was mainly due to the losses, which were taking place in the transmission line, which had a length of about 1.5 Km.

The compressed air supply from the main header to the units 1 and 2 was segregated. Dedicated screw compressors of following specifications were installed and operated. For unit 1 ! Capacity - 2000 Cfm ! Operating pressure - 4.0 kg/cm2 For unit 2 ! Capacity - 600 Cfm ! Operating pressure - 4.5 kg/cm2
Implementation The installations of the new compressors were done during the normal operation of the plant. The new compressors were hooked to the compressed air supply lines of the respective units during the scheduled preventive maintenance. The plant team did not face any problems during the implementation of the project. Benefits The operation of two compressors of capacity 1500 Cfm each, in the compressor house was avoided. Financial Analysis Segregation of high pressure and low-pressure users of compressed air and installation of dedicated compressors for low-pressure users, led to an annual savings of Rs 1.04 million. This required an investment of Rs 1.5 millions, which got paid back in 18 Months. Replication potential The project has tremendous replication potential in the case of all plants where ! There are centralised facilities for generating compressed air ! A combination of high pressure and low-pressure users connected to the common header ! Long transmission lines


Air Compressors Proposal-3 : segregate high pressure and low pressure compressed air users Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 1.500 1.200 1.040 -0.057 -1.500 2.738 55.87% 0.980 0.300 1.040 0.265 0.617 0.000 1.040 0.373 0.475 0.000 1.040 0.373 0.424 0.000 1.040 0.373 0.378 0.000 1.040 0.373 0.338 0.000 1.040 0.373 0.302 0.000 1.040 0.373 0.269 0.000 1.040 0.373 0.240 0.000 1.040 0.373 0.215 1.040 1.040 1.040 1.040 1.040 1.040 1.040 1.040 1.040 1.040 1.04 1.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-1.500 1.097 0.775 0.667 0.667 0.667 0.667 0.667 0.667 0.667 0.667
Case study No. 4
Replace Refrigeration / Desiccant Type Air Dryers with Heat of Compression Air Dryers, in Case of Reciprocating Air Compressors
Background
The heat available in the compressed air (temperature of 120 deg C) is utilized for regeneration of the desiccant, which otherwise needs an electrical heater. Heat of Compression type air dryer is a breakthrough in compressed air drying technology. Thus the need for a heater is eliminated and also there is no purge loss. An atmospheric dew point of (-) 40 deg C can be easily achieved using HOC dryer. There is considerable power saving in this type of Air Dryers
Principle of operation of HOC dryer

Compressed air, directly from compressor discharge, which is at a temperature of 130 C (in the case of reciprocating compressor), is used to regenerate the desiccant. There are no electrical heaters and no purging loss. This makes the dryer very attractive in terms of operating cost. The desiccant can be Activated Alumina or silica gel depending on the dew point required. The dryer consists of two vessels A andB. Vessel A will be in service for 4 hours. Meanwhile vessel B is reactivated which consists of heating for 2 hrs and cooling for 1 hrs. After this, vessel B is taken into service and vessel A is reactivated. The regeneration cycle consisting of heating and cooling cycle as explained below: A) Vessel A in service, vessel B in heating Air from compressor enters 4-way valves V2 and V1 and directly to vessel B so as to start the heating process. From vessel B the air through valv V3 and V2 enters e after cooler ACI, where it loses some of the moisture. Through V3 again air enters vessel A where moisture is adsorbed by th desiccant and finally leaves through V1 e to an After-cooler AC2 where it is cooled to about 35-40oC. After getting filtered in the After-filter, air goes to process, which is dry to an atmospheric dew point of 40oC. The heating cycle is normally for 2 hours duration.

After-Filter V1
AC
Dry air to process
V2
A
Saturated Air from
Heating
AC
V3 Service 100 %
B) Vessel A in service, vessel B in cooling
AC2
V1
After-Filter Dry air to process
Saturated Air from
Heating
V2 V3 Service
100 %
AC1
Air from compressor passes through V2, gets cooled in AC1 and enters vessel B through V3. After cooling the desiccant in vessel B air passes through 4-way valves V1, V2 and V3 and enters vessel A, which is in service. The air on getting dry, enters After-cooler AC2 via V1, gets cooled to about 35-40oC. This air dried to an atmospheric dew point of 40oC is now ready for use. The cooling cycle is normally for about 1 hour duration.
Previous status
In an engineering unit, the compressed air to the plant was broadly classified into instrument air and the process air. The instrument air requirement was being met with using two 1100 cfm-reciprocating compressors. Usually, one of the two Compressors was operated continuously to cater the instrument air requirements of the plant. This compressed air was dried in desiccant heatless type (2 Nos) dryers before being used. The estimated purge loss from the desiccant heatless dryers was about 15% of the compressors capacity.

Heat of Compression (HOC) dryers were installed in place of the desiccant / heatless type dryers.
Benefits
This has resulted in zero purge loss and achievement of (-) 40 deg c atmospheric dew point as required.
Financial Analysis
The estimated annual savings achieved was Rs.1.23 million. The investment required amounted to Rs.2.00 million, which got paid back in 20 Months.
HOC dryers can be installed in place of refrigeration/desiccant type dryers wherever the capacity of the reciprocating compressor is above 500 cfm. The most recent development has been the development of HOC dryers for screw compressors also. This is commercially available in India and this recent development gives HOC dryers a tremendous opportunity to be used as a retrofit for screw compressors also.


Air Compressors Proposal - 4: Replace Refrigeration / Desiccant Type Air Dryers with Heat of Compression Air Dryers, in Case of Reciprocatings Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -2.000 -2.000 3.083 49.89% 2.000 1.600 1.230 -0.133 1.363 1.217 0.400 1.230 0.298 0.932 0.743 0.000 1.230 0.441 0.561 0.000 1.230 0.441 0.501 0.000 1.230 0.441 0.448 0.000 1.230 0.441 0.789 0.400 0.000 1.230 0.441 0.357 0.000 1.230 0.441 0.319 0.000 1.230 0.441 0.284 0.000 1.230 0.441 0.254 1.230 1.230 1.230 1.230 1.230 1.230 1.230 1.230 1.230 1.230 1.23 2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.789 0.789 0.789
0.789 0.789 0.789 0.789
Case study No. 5
Install Blower for Water Removal from the Bottle Surface and Avoid Compressed Air Usage
Background
Present status
In the bottling section in one of the bottling units, after filling the beverage in the bottles, the date and batch numbers are printed on the bottles. Before the printing operating the water particles on the surface of the water bottles were removed by blowing the compressed air continuously. Each bottling section was fitted with a nozzle for blowing the compressed air on the bottle surface. The compressed air was supplied at an operating pressure of 1 kg/cm2. This was achieved by throttling a control valve at the inlet of the nozzle and reducing compressed air supply at 5.0 kg/cm2 from the main header. The quantity of compressed air supply in each line was estimated as 20 cfm.

For water particle removal the volume of airflow was the criteria not the operating pressure. The water removal can be effectively done by supplying air at very low pressure. This was achieved by installing a positive displacement blower. The specific power consumption of blower air is much lower than the specific power consumption of compressed air. The comparison between specific power consumption of compressed air and blower are given below. ! Compressed air ! Blower air 15 kW/100 cfm 3 kW/100 cfm
Hence, there was a good potential to save energy by replacing the compressed air with blower air.
Recommendation
The plant team had installed a blower of capacity 25 cfm and replaced compressed air with blower air for removing the water particles from the surface of the beverage bottles. Benefits The annual energy savings realized was Rs.0.35 Lakhs. This required an investment of Rs. 0.40 Lakhs for installing a positive displacement blower in one line, which paid back in 14 Months.

Air Compressors Proposal - 5: Install Blower for Water Removal from the Bottle Surface and Avoid Compressed Air Usage Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.400 -0.400 0.994 69.30% 0.400 0.320 0.350 0.011 0.339 0.303 0.080 0.350 0.097 0.202 0.000 0.350 0.126 0.160 0.000 0.350 0.126 0.143 0.000 0.350 0.126 0.127 0.000 0.350 0.126 0.114 0.000 0.350 0.126 0.102 0.000 0.350 0.126 0.091 0.000 0.350 0.126 0.081 0.000 0.350 0.126 0.072 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.35 0.4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.253 0.224 0.224 0.224 0.224 0.224 0.224 0.224 0.224
Case study No. 6
Install Transvector Nozzles for Cleaning Application

Background
With the increased awareness on cost of compressed air, various plants are taking up measures to avoid / substitute the use of compressed air. Several energy saving devices are now available to reduce the compressed air consumption in the industrial units. One of the recent development in this regard is the application of Transvector Nozzles to reduce the quantity of compressed air consumed in the units.
Present Status
One of the engineering units in south India was evaluating various options for reducing compressed air consumption in the unit. There were about 25 cleaning points located all round the plant The plant team decided that for all cleaning operations the volume of the airflow was the criteria. High pressure air at 6.0 kg/cm2 was not required for cleaning application. Air at a pressure of 2.0 - 2.5 kg/cm2 can be used effectively for cleaning operations.
Energy saving Proposal

To reduce the compressed air consumption in the plant, the plant team decided to install Transvector nozzles at the user ends. It works based on Venturi principle. When the compressed air flows through the nozzle, because of the venturi effect, the atmospheric air is sucked in through the holes provided in the periphery of the nozzle. The atmospheric air is mixed with compressed air and supplied for cleaning at lower pressure (2-3 kg/cm2). The atmospheric air replaces about 40-50% of the compressed air. This has resulted in reduced compressed air consumption for cleaning operation and reduction in compressor power consumption. Benefits The annual energy saving achieved on installation of transvector nozzle is Rs. 0.71 millions. This called for an investment of Rs. 0.63 millions and had a simple payback period of 11 months.


Air Compressors Proposal - 6: Install Transvector Nozzles for Cleaning Application Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.630 -0.630 2.140 87.29% 0.630 0.504 0.710 0.074 0.568 0.126 0.710 0.210 0.399 0.000 0.710 0.255 0.324 0.000 0.710 0.255 0.289 0.000 0.000 0.710 0.710 0.255 0.255 0.258 0.231 0.000 0.710 0.255 0.455 0.206 0.000 0.710 0.255 0.184 0.000 0.000 0.710 0.710 0.255 0.255 0.164 0.147 0.710 0.710 0.710 0.710 0.710 0.710 0.710 0.710 0.710 0.710 0.71 0.63 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.636 0.500 0.455 0.455 0.455 0.455
0.455 0.455 0.455
Case study No. 7
Replace Compressed Air with Blower Air in the Raw Water Treatment Plant
Background
Present status
The possibility of reducing the compressed air usage was studied in detail by the plant team. In the water treatment plant, compressed air was used for aeration for about 8 hrs/day. The compressed for aeration air was drawn through a diameter line from the main header at a pressure of about 7.0 kg/cm2. The estimated volume or airflow for aeration was estimated to be 60 cfm. For effective aeration purposes, volume of airflow is the criteria, not the pressure.

The maximum pressure required for agitation purpose was about 0.5 kg/cm2, which was achieved by positive displacement blowers. The specific power consumption of blower air is much lower than the specific power consumption of compressed air. The comparison between specific power consumption of compressed air and blower air is as follows. ! Compressed air @ 7.0 kg/cm2 ! Blower air 0.162 kW/cfm 0.040 kW/cfm
Recommendation
The plant team replaced the compressed air with blower air for agitation in water treatment plant by installing a positive displacement blower. The specifications of the blower were: ! Capacity ! Pressure Benefits The annual energy saving realized by this substitution of compressed air was Rs 0.05 Million. This called for an investment of Rs 0.035 Million for the positive displacement blower, which paid back in 9 Months. 80 cfm 0.5 kg/cm2


Air Compressors Proposal - 7: Replace Compressed Air with Blower Air in the Raw Water Treatment Plant Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.035 -0.035 0.157 108.26% 0.035 0.028 0.050 0.008 0.042 0.038 0.007 0.050 0.015 0.028 0.000 0.050 0.018 0.023 0.000 0.050 0.018 0.020 0.000 0.050 0.018 0.018 0.000 0.050 0.018 0.016 0.000 0.050 0.018 0.015 0.000 0.050 0.018 0.013 0.000 0.050 0.018 0.012 0.000 0.050 0.018 0.010 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.050 0.05 0.035 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.035 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032
Centrifugal Pumps
Energy Conservation in Centrifugal Pumps
Introduction
Pump is common equipment, used to increase the mechanical energy of a fluid and impart the fluid a motion through pipe, equipment or the ambient atmosphere. The energy increase may be used to increase the velocity, the pressure or the elevation of the fluid. Pumps find application in various types of industries, such as Paper, Sugar, Chemical, Fertilizers, Refineries and Steel etc. The public water works, thermal power stations, sewage treatment plants also find major application for pumps. The electrical energy consumption in the agricultural sector is predominantly for pumping (used for irrigation).
Energy consumption and energy saving potential

Pumping systems account for an estimated 40% of the electricity used in the industrial sector in India, or almost 15% of the total national electricity consumption. In many process plants, pumping systems are estimated to account for 40-60% of the total electricity consumption. Essentially, all electrical energy used in the agricultural sector is for pumping. Overall, pumping systems consume an estimated 82 billion kWh of electricity in India. Based on the data collected during the study and on the basis of energy audits conducted by Confederation of Indian Industry (CII), an annual energy saving potential of Rs. 4250 million (equivalent to 178 MW reduction in power consumption) exists in pumping systems in the industrial sector. One of the major methods for achieving this huge energy savings potential is through adoption of energy saving measures. The approach offers a major opportunity for improving the operating efficiency, achieving cost reduction and improving profits. A detailed break-up of the national energy saving potential in pumping systems is given in Table. Annual Savings Potential Industry / Sector (In Rs. Million) Chemical & Petrochemical Plant Pulp and paper plant Steel Plant Fertilizer Plant Thermal Power Plant Textile Plant 700 675 400 300 270 100 (In MW) 29.30 28.30 16.70 12.60 11.30 4.20

Cement Plant Commercial buildings & hotels Public water works Others Total
45 60 1500 200 4250
1.90 2.50 62.80 8.40 178.00
Case study No. 1
Install Variable Frequency Drive for Oil Pump in Hydraulic Power Packs and Reduce Idle Operation
Background
In engineering Industry, hydraulic power packs are used for several applications like moulding machines, extrusion machines, pressing machines, die casing machines etc. In the hydraulic system actuation takes place for holding the job only for about 20 30% of the operating time. After the holding operation only the required operating pressure has to be maintained. During the rest of operating time the excess quantity of oil pumped by the hydraulic system is recirculated back to the tank. The recirculation takes place for about 70-80% of the operating time, through a three-way recirculation valve provided for this purpose. The % opening of the recirculation valve is governed by a continuous feed back signal, depending on the amount of oil required for the process. Recirculation results in excess power consumption in the hydraulic pump for pumping the excess quantity of oil.
Case Study Previous status

In a pipe-manufacturing unit, there were 12 hydraulic power packs in the foundry section and at any point in time 7 were being operated, for actuating the die casting machines. For about 60-70% of the operating time, oil was being recirculated.

Variable Frequency Drives (VFDs) were installed for the oil pumps with feed back control using a pressure sensor provided at the discharge side of the pumps. The VFD was operated in closed loop with a pressure sensor on the pump discharge header. The pressure sensor senses the process requirement and the pressure signal is given as the input to the VFD. The VFD varies the speed of the (RPM) pump so that only that quantity of the fluid demanded by the process is pumped.
Benefits
Installation of VFD for oil pumps in Hydraulic power pacs resulted in an annual saving of Rs. 0.3 million. This required an investment of Rs 0.35 million for variable frequency drives with feed back control, which got paid back in 15 Months.
The project can be replicated in all the units where oil pumps are installed for pumping oil in the hydraulic power packs.

Centrifugal Pumps Proposal - 1: Install Variable Frequency Drive for Oil Pump in Hydraulic Power Packs and Reduce Idle Operation Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.350 -0.350 0.847 68.00% 0.350 0.280 0.300 0.007 0.293 0.261 0.070 0.300 0.083 0.173 0.000 0.300 0.108 0.137 0.000 0.300 0.108 0.122 0.000 0.300 0.108 0.109 0.000 0.300 0.108 0.097 0.000 0.300 0.108 0.087 0.000 0.300 0.108 0.078 0.000 0.300 0.108 0.069 0.000 0.300 0.108 0.062 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.300 0.3 0.35 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.217 0.192 0.192 0.192
0.192 0.192 0.192
0.192 0.192
Case Study 2
Install Variable Frequency Drives (VFDs) for Pumps Catering Varying Demand Instead of Operating with Recirculation /Valve Throttling
Background
Pumps are common equipment in any engineering industry. The load on a pump may either be constant or variable. The variation in the load may be due to various factors like process variations, changes in capacity or utilization etc. Conventionally, the output of the pump is adjusted according to the process requirements using one of the following methods namely by pass / recirculation or valve throttling. Variable speed drives are devices used for varying the speed of the driven equipment (like pump) to exactly match the process requirement.
Previous status
The heating requirements of the electroplating section in an automobile unit were being met by oil-fired thermic fluid heating systems. In the section, thermic fluid is supplied through heating coils to multiple numbers of tanks (10-12 tanks) the requirement and hence the flow rate of the thermic fluid varied with the temperature and the number of user points in operation. The flow was regulated through a 3-way valve. Heating was not done in all the tanks continuously and simultaneously. So once the set temperature was achieved, the thermic fluid was recirculated, without going to the process. The thermic fluid pump therefore was in continuous operation at its full capacity, irrespective of the number of users in operation.

A Variable Frequency Drive (VFD) was installed for the thermic fluid circulation pump.
VFD was operated in closed loop with a pressure sensor on the pump discharge header. The pressure sensor senses the process requirement and the pressure signal is given as the input to the VFD. The VFD varies the speed of the (RPM) pump so that only that quantity of the fluid demanded by the process is pumped. Installation of VFDs for the thermic fluid pumps was done during the regular operation of the plant itself. The recirculation valve was closed completely. The plant team did not face any problems during the implementation of the project.
Benefits
The implementation of this project resulted in saving of energy consumption of the pump and also better control of the system.

Financial Analysis
The installation of VFD for the pump resulted in an annual saving Rs.0.20 Million. The investment of Rs 0.20 Million was paid back in 12 months.
Installation of variable speed drives for pumps can be replicated in all applications where a pump is supplying to variable demand, which is the normal case in many engineering industries.

Centrifugal Pumps
Proposal - 2: Install Variable Frequency Drives (VFDs) for Pumps Catering Varying Demand Instead of Operating with Recirculation /Valve Throttling
Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation
0.2 0.2 0 1 0.200 0.200 0.160 0.200 0.014 -0.200 0.587 78.30% 0.166
Discount Rate (i) 2 0.200 3 0.200 4 0.200
12% 5 0.200 6 0.200 7 0.200 8 0.200 9 0.200 10 0.200
0.040 0.200 0.057 0.114
0.000 0.200 0.072 0.091
0.000 0.200 0.072 0.082
0.000 0.200 0.072 0.073
0.000 0.200 0.072 0.065
0.000 0.200 0.072 0.058
0.000 0.200 0.072 0.052
0.000 0.200 0.072 0.046
0.000 0.200 0.072 0.041
-0.200 0.186 0.143 0.128 0.128 0.128 0.128 0.128 0.128 0.128 0.128
Case study No. 3
Optimise the Condenser Cooling Water Supply to the Chilling Plant

Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. Condenser water flow rate is designed to cater to the maximum operation of the chiller and for extreme climatic conditions. These conditions were a rarity. Good potential for energy saving exists in condenser water pumps.
Previous Status
In a chemical unit, a refrigeration unit of capacity 125 TR was in operation for chilled water requirement in the plant. The condenser cooling system for the refrigeration unit was studied in detail. The observations made during the detailed energy audit were as follows: ! Two centrifugal pumps of following specifications were in operation for the cooling water supply to the condenser of the refrigeration unit. " Capacity " Head 125 TR 30 m
Two pumps were installed with variable frequency drive and operated at a reduced frequency of 42.5 Hz. ! During the study, it was observed that cooling water flow takes place through the idle condenser also. Cooling water flow through the idle condenser was not necessary. This led to excess power consumption in the cooling water pumps for pumping the excess cooling water. ! The control valve provided at the outlet of the condenser was throttled. This was done to maintain a pressure of 1 kg/cm2 at the outlet of the condenser, which in turn given a feed back to the pressure based interlock to the compressor. The valve control leads to pressure loss across the control valve and hence energy loss.

! Excluding the excess cooling water flow across idle condensers, the quantity of cooling water requirement for a refrigeration unit of capacity 125 TR was estimated as 105 m3/hr. For the estimated quantity of cooling water, operating one pump of the above mentioned capacity is sufficient. ! A trial was taken by the plant team by operating one pump at the reduced operating frequency of 45Hz for the condenser cooling water supply. The trial was successful. The refrigeration unit was operating well.

Benefits
The annual energy saving achieved by implementing this proposal was Rs 0.093 millions. This did not require any investment.
Case study No. 4
Avoid Hot Well Pump Operation in Chilled Water System by Connecting Return Header Directly to Chiller
Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. The pumping system offers substantial potential for energy saving.
Previous status
The chilled water system in a pharmaceutical unit, comprising of the chiller compressor, hot well & cold well pumps was studied for possible energy savings. The observations made on the system were as follows: " The design specifications of the pumps were:
Hot Well pump

" Capacity " Head " Motor 600 m3/h 50 m WC 110 kW (77.3 kW)
Cold Well pump

" Capacity " Head " Motor 600 m3/h 20 m WC 45 kW (35.4 kW)
! The hot well pump was used to pump the hot return water from the hot well though the chiller to the cold well. While, the cold well pump was used to pump chilled water from the cold well to the process users. ! The cold well pump was being operated with valve throttling (60% open). This indicated the excess capacity/ head available in the pump. ! The chilled water header was maintained at a pressure of 3.6 kg/cm2. The pump delivery pressure (before delivery valve) was 4.4 kg/cm 2. This implies that pressure drop across the delivery valve was 18%. ! Apart from this, the pump was also being operated with recirculation control. A part of the chilled water from the cold well pump discharge is sent back to the hot well, by-passing the process users.

! The pressure in the return chilled water header was about 1.7 - 2.2 kg/cm2, depending on the number of users in operation. This pressure was dropped across a valve on the return header, which is connected to the hot well. ! The pressure required at the inlet to the chiller is about 1.8 2.0 kg/cm2. The pressure at the outlet of the chiller was 0.7 kg/cm2, indicating that the pressure drop across chiller is about 1.0 1.3 kg/cm2.

The cold well pump had sufficient design head to cater to the requirements of the process as well as the chiller pressure drop. By operating the cold well pump without recirculation and increased valve opening, the operation of hot well pump could be avoided. Thus, there is good potential to use the excess head available in the cold well pump, to pass the chilled water return line directly to the chiller and avoid the hot well pump operation. The plant team connected the return chilled water line from process, directly to the chiller, so that, the operation of hot well pump can be totally avoided. With this modification, the hot and cold well became a single large cold well. There was a rare possibility of all the users, not in operation. To avoid the possibility of chillers starving for water during this condition, an automatic bypass line with a pressure sensing control was provided from the supply to return header.
Benefits
The annual energy saving achieved by this proposal was Rs. 0.535 millions. This required an investment (for return line modification & bypass line) of Rs. 0.15 millions, which had an attractive simple payback period of 4 months. Cost benefit analysis Annual Savings Rs. 0.535 millions Investment Rs. 0.15 millions
Centrifugal Pumps Proposal - 4: Avoid Hot Well Pump Operation in Chilled Water System by Connecting Return Header Directly to Chiller Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.150 0.120 0.535 0.149 -0.150 1.835 250.69% 0.345 0.030 0.535 0.181 0.282 0.000 0.535 0.192 0.244 0.000 0.535 0.192 0.218 0.000 0.535 0.192 0.195 0.000 0.535 0.192 0.174 0.000 0.535 0.192 0.155 0.000 0.535 0.192 0.139 0.000 0.535 0.192 0.124 0.000 0.535 0.192 0.110 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.15 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.150 0.386 0.354 0.343 0.343 0.343 0.343 0.343 0.343 0.343 0.343

Case study 5
Install Variable Frequency Drive (VFD) for the Chilled Water Supply Pumps
Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. The pumping system offers substantial potential for energy saving
Previous status
Chilled water system is one of the major electrical energy consumers in this chemical unit. There were 4 nos. of (normally 2 in operation, 2 as standby) Screw type chiller compressors of 725 TR, 600 kW rating with NH3 as the refrigerant for chilled water generation. The operation of the chilled water supply pump was studied for possible energy savings. The observations on the system were as follows: There were 3 chilled water supply pumps (1 in operation, 2 as standby) for supply of chilled water to the different users in the plant. The design specifications of the pump were: ! Capacity ! Head ! Motor Rating 600 m3/h 50 m WC 110 kW (77.3 kW)
The pump was operated with discharge valve throttling. The required header pressure to ensure chilled water flow to all the users was about 3.6 kg/cm2 (or 36 m WC). This confirmed that the pump has excess design head, which is controlled using the delivery valve. The measured pressure drop across the delivery valve was about 18% of the total head developed by the pump. Moreover, the pump is also operating with recirculation control. The chilled water demands of the process were varying in nature - not all the users require chilled water at the same time.

The operation of a pump with valve throttling and recirculation controls is energy inefficient methods of capacity control. The best energy efficient method of capacity control is to vary the RPM of the pump, matching the requirements. This can be best achieved with a variable frequency drive.
The plant team installed a variable frequency drive (VFD) for the chilled water supply pump and operated at a lower RPM. The pump was operated with a closed loop pressure sensor control. After installation of VFD, valve throttling was completely avoided.
Benefits
The annual energy saving achieved by implementing this proposal was Rs. 6.77 Lakhs. This required an investment (for VFD and controls) of Rs 12.00 Lakhs, which had a simple payback period of 21 months.


Centrifugal Pumps Proposal - 5: Install Variable Frequency Drive (VFD) for the Chilled Water Supply Pumps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.120 0.096 0.677 0.208 -0.120 2.371 385.74% 0.418 0.024 0.677 0.234 0.353 0.000 0.677 0.243 0.309 0.000 0.677 0.243 0.276 0.000 0.677 0.243 0.246 0.000 0.677 0.243 0.220 0.000 0.677 0.243 0.196 0.000 0.677 0.243 0.175 0.000 0.677 0.243 0.157 0.000 0.677 0.243 0.140 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.120 0.469 0.443 0.434 0.434 0.434 0.434 0.434 0.434 0.434 0.434

Case study No. 6
Utilise the Spare Condensers in Chilled Water and Chilled Brine System
Previous status
The refrigeration system was one of the major electrical energy consumers in the entire plant. The plant had a chilled water system operating at about +7C and a chilled brine system operating at about 10C. The plant had a total connected chilled water load of 2900 TR, comprising of 4 systems of 725 TR each. Similarly, the total chilled brine load in the plant was about 144 TR, comprising of 2 systems of 72 TR each. For day-to-day operations, only 2 systems of 725 TR capacities each of chilled water system and 1 system of 72 TR capacity-chilled brine was in operation. This implied that chilled water & chilled brine systems have 100% back-up. Each chilled water system had two sets of condensers, operating in parallel. The present cooling water flow through each of the condensers was 325 m3/h. The pressure drop across condenser on the cooling water side was about 3.0 kg/cm2, which was very high. Similarly, the pressure of NH3 at the inlet to condensers was about 15.0 kg/cm2. This corresponds to a temperature of 75 80C, which was the superheat temperature. Hence, additional power was consumed for cooling NH3 from the superheat temperature of 75C to 40C, which was the saturation temperature of NH3 at 15.0 kg/cm2. The present LMTD of heat transfer, for cooling water T of 6C (inlet at 30C and outlet at 36C) was 6.54C. There was a good potential to utilise the spare condensers of the stand-by systems for increasing the area available for cooling and also achieve energy savings.

This utilisation of the spare condensers can result in the following advantages: " Lower system pressure for cooling water " Lower refrigerant temperature in condenser " Lower chiller compressor power consumption Action Plan to be adopted ! Connect all the compressor discharges, at the outlet of the oil separators to a common loop header. ! The loop header should be provided with isolation valves in such a way that, any of the compressor discharges could be connected to any one of the condenser sets.
! The outlet from the individual condensers sets should also be connected to a loop header. This loop header should also be provided with isolation valves, such that, the outlet from any of the condenser sets can be taken to the individual receivers.
Advantages 1. Reduction in pressure drop across condenser

The utilisation of the spare condensers results in doubling of area available for cooling. For the same total volumetric flow rate and double the area, the velocity of flow reduces by 50%. The pressure drop across a condenser is proportional to the square of velocity, i.e., P V2. Hence, with reduction in velocity by 50%, the pressure drop across the system will reduce by 1/4th. The pressure drop across condensers will reduce from the earlier 3.5 kg/cm2 to about 0.875 kg/cm2. This will in turn reduce the actual head requirements of cooling water pumps at UCT. The estimated head requirement of the pumps, with the proposed modifications was, 3.0 kg/cm2 (or 30 m WC), as against the present design head of 43 m WC.
2. Reduction in condenser pressure

NH3 entering the condenser was at a pressure of 15.0 kg/cm2. This corresponds to a superheat temperature of 75 80C. Hence, cooling load will comprise of cooling the superheat from 75C to 40C (the saturation temperature at 15.0 kg/cm2), condensing NH3 at the constant temperature of 40C and sub-cooling of NH3 at constant pressure. The major cooling load will be the condensing of NH3 at its saturation temperature of 40C. The estimated LMTD for this condensing was 6.54C. With the doubling of condensing area, the overall heat transfer was assumed to remain the same. Therefore, the cooling water inlet and outlet temperatures would also remain the same. Since, heat transfer coefficient (velocity)0.8, the doubling of area would lead to reduction of velocity by 50% and heat transfer coefficient by 0.57 times that of the original. The estimated LMTD with this new heat transfer coefficient would be 5.73C, resulting in a LMTD reduction by 1.3C. Typically, for every 1C reduction in condensing temperature, there will be about 3 4% reduction in compressor power consumption.
Benefits
The annual energy saving achieved by interconnecting the spare condensers was Rs. 1.48 millions. This required an investment (for proposed modifications) of Rs. 0.8 millions and with an attractive simple payback period of 7 Months.


Centrifugal Pumps Proposal - 6: Utilise the Spare Condensers in Chilled Water and Chilled Brine System Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.800 0.640 1.480 0.301 -0.800 4.813 136.95% 1.052 0.160 1.480 0.474 0.802 0.000 1.480 0.531 0.676 0.000 1.480 0.531 0.603 0.000 1.480 0.531 0.539 0.000 1.480 0.531 0.481 0.000 1.480 0.531 0.429 0.000 1.480 0.531 0.383 0.000 1.480 0.531 0.342 0.000 1.480 0.531 0.306 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.48 0.8 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.800 1.179 1.006 0.949 0.949 0.949 0.949 0.949 0.949 0.949 0.949
Centrifugal Fans
Energy Conservation in Centrifugal Fans
Introduction
Fans and Blowers are commonly used equipment in almost all the industries, such as cement, paper, sugar, power plants, etc. The power consumed by the fans varies between 5% to 30% of the total power, depending on the type of industry and application. With the tremendous growth potential predicted for the Indian Industries in the future, the utilization of the fans and blowers will be on the rise resulting in increased energy consumption by the fans. With this growth, increasing competitiveness and the increasing gap between demand and supply of energy, there is an imperative need to operate equipments in an energy efficient manner. The fans and blowers being major energy consuming equipment and present in almost all the industries, good benefits can be achieved by operating them in an energy efficient manner. This also contributes to the national interest. Definition The definition of fans, blowers and compressors has been defined in the following manner as per ASME. The specific pressure, i.e, the ratio of the discharge pressure over the suction pressure is used for defining the fans, blowers and compressors as highlighted below :
Equipment Fans Blowers Compressors
Specific Ratio Up to 1.11 1.11 to 1.20 More than 1.20
Pressure rise (mmWg) 1136 1136 2066 -

Case study No. 1 Replace the Low Efficiency Exhaust Fans with New Fans of Higher Efficiency
Background A fan is typically a mechanical device that causes a movement of air, vapour & other gases in a given system. In electroplating sections, fumes, which are produced during the process, are forcefully sucked and let out into the atmosphere using exhaust fans. This is a typical application where the volume of air to be handled becomes the only criterion for the selection of fan. Axial fans are ideally suited for such applications involving a lower head and higher volume of air to be handled. Their efficiency is also much better compared to centrifugal fans.
Previous status
In an engineering unit, manufacturing end rings for rotating equipment, the exhaust fan in the plating section was utilized to remove the fumes generated during the plating operation. A centrifugal fan was used for the purpose. The fan was catering to a head of 39 mm WC and delivering a flow of 14 m3/s, consuming 17.8 kW. The corresponding efficiency was only 39%.

Axial fans are capable of meeting head requirements upto 75 mm WC. These fans have better operating efficiency than the centrifugal fans, both in full loads and in partial loads. The minimum operating efficiency of an axial fan is about 65%. The existing plating section exhaust fan was replaced with a new axial fan of higher efficiency, having a capacity 15 m3/s and capable of developing a pressure head of 40 mm WC. Financial Analysis Implementation of this project resulted in an annual savings of Rs. 0.18 millions. The investment required for the fan was 0.1 million. The simple pay back period for the project was 7 months. Replication potential There is a tremendous potential to replace centrifugal fans with higher efficiency axial fans in applications where the required head is lower than 75 mm of WC.

Centrifugal Fans Replace the Low Efficiency Exhaust Fans with New Fans of Higher Efficiency Furnaces Savings/Year (Rs Million) Discount Rate (i) 0.18 Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation -0.100 -0.100 0.584 133.57% 0.100 0.080 0.180 0.036 0.129 0.020 0.180 0.057 0.098 0.000 0.180 0.065 0.082 0.000 0.180 0.065 0.073 0.180 0.180 0.180 0.180 0.1 0 1 2 3 4
12% 5 0.180 6 0.180 7 0.180 8 0.180 9 0.180 10 0.180
0.000 0.180 0.065 0.065
0.000 0.180 0.065 0.058
0.000 0.180 0.065 0.052
0.000 0.180 0.065 0.047
0.000 0.180 0.065 0.042
0.000 0.180 0.065 0.115 0.037
0.144 0.123 0.115 0.115 0.115 0.115 0.115 0.115 0.115

Case study No. 2
Install VFDs for Hot Air Circu lation Fans in Preheating Furnaces
Background
Heat treatment is the process of altering the properties of a metal by subjecting it to a sequence of temperature changes. Hence the time of retention at specific temperature and rate of cooling are as important as the temperature itself. Heat treatment markedly affects strength, hardness, malleability and ductility and other similar properties of both metals and their alloys. Heat treatment finds applications across all the industries and sectors and is a common process in all the engineering industries. The major equipment used in heat treatment of any metal or alloy is the furnace. Fans are used for forceful circulation of air to aid the heat transfer process. Fans ensure uniform heat transfer which result in faster heating. The operation of the fans can be aligned with the operating cycle of the furnace, to optimize energy savings. VFDs find applications in optimizing the speed of the circulation air fans based on the temperature cycle.
Previous status
In an engineering unit, Preheating furnaces were used for heat treatment. The typical loading of the furnace was in the range of 42 45 tons/ batch/ preheating furnace (max capacity 50 T). The process is described below: Each preheating furnace is divided into six zones, with each zone having a heater bank. The heater banks are arranged in a vertical fashion on top of the furnace. The rating of the heaters in the different zones range from 270 amps to 450 amps The typical batch time is about 12 hours. The temperature to be maintained inside the furnace is about 620 deg C. Each zone is also provided with circulating air fans for forced heat circulation. The desired metal temperature for hot rolling is about 530C (minimum). After accounting for the ingot rolling time and temperature loss from preheating furnace outlet to the hot rolling mill of about 40 60C (between top ingot & bottom ingot), the metal is heated upto a temperature of 590- 600C. The air temperature required to maintain this metal temperature is 620C. Once the furnace charging is complete and the batch time starts, the heaters and fans are switched ON automatically. It takes a bout 2 3 hours for the air temperature to be raised from a starting temperature of 360 380C to 620C. The total time taken for heating the metal from the ambient temperature to 580-590C is about 7 hrs. Once the set temperature is achieved, the heaters get switched OFF automatically. The ingots are then allowed to soak for the remaining 5 hours. The heaters operate on thermostat controls in ON-OFF mode during this period, primarily to take care of the radiation and hot air losses.
The average power consumption during the heating phase of then batch time is about 1000 kWh, while that during the soaking phase is about 650 kWh. The total heat transfer process takes place in the following sequence from heater to air by conduction/ radiation and from air to metal by forced convection. The convection phase of heat transfer is the critical step, which decides the quality of processing. The heat transfer rate is a function of (velocity of air)0.8 and the temperature differential between metal and air. The detailed analysis of time vs. temperature profile of the 6-zones revealed that, at the end of the heating cycle and during the soaking phase, the air velocity required to maintain the heat transfer rate between air and metal is lower, due to lower temperature differential.

VFDs were installed for the air circulating fans. All the circulating air fans were operated at a lower RPM during the soaking period using programmed PLC controls. A 30% speed reduction (speed was reduced from 50 Hz to 35 Hz) was achieved.
Implementation of the Project

VFDs for the circulating fans were installed during the normal operation of the plant itself. The plant team did not face any problems at any stage during implementation of the project.
Benefits
The annual savings achieved due to implementation of the project, amounted to Rs.0.36 million. This required an investment of Rs.0.40 million, which had a simple payback period of 14 months. Replication potential The project finds tremendous replication potential in all furnaces where hot air circulation fans are in use for heat treatment. By conservative estimates, the project can be implemented at least in 150 engineering units across the country


Centrifugal Fans Proposal-2: Install VFDs for Hot Air Circulation Fans in Preheating Furnaces Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.400 -0.400 1.030 71.11% 0.400 0.320 0.080 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.014 0.100 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.309 0.207 0.164 0.147 0.131 0.117 0.104 0.093 0.083 0.000 0.360 0.129 0.074 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.360 0.36 0.4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.346 0.260 0.231 0.231 0.231 0.231 0.231 0.231 0.231 0.231
Case study No. 3
Install Variable Frequency Drive for Circulating Air Fans in Vertical Drier
Background
The circulating air fan is utilized to circulate hot air from the hot air generator to the vertical drier. A fraction of air is vented out. Fresh air is added into the system by a fan as well as by air infiltration due to suction of circulating air fan. The fresh air addition happens depending on the temperature inside the drier. If the temperature goes up, the fresh air addition increases. Moreover, the circulation air rate is constant though the fuel-firing rate is varied depending on the temperature inside the drier. Good potential to vary the circulation of fan depending on the temperature inside the drier. This ensures maintaining constant temperature in the drier and reduces the fresh air addition.
Previous status
Two Vertical driers were used for different kilns in the plant. Constant temperature in the driers was not maintained which resulted in additional fresh air consumption of around 8400Kg/h. Hence there was a good potential to vary the circulation air quantity depending on the temperature.

Variable Frequency Drive was installed in the circulating air fan in Vertical Driers. The speed of the fan was varied depending on the temperature inside the drier.
Financial Analysis
Installation of Variable Frequency Drive for circulating air fans in Vertical Driers resulted in an annual energy saving of Rs 0.695 Million. This required an investment of Rs 0.65 Million and had a simple payback period of 12 months.
Benefits
(a) (b) Reduction in power consumption of the circulating air fan by at least 25% Reduction in thermal energy consumption


Centrifugal Fans Proposal-3:Install Variable Frequency Drive for Circulating Air Fans in Vertical Drier Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.650 -0.650 2.072 83.22% 0.650 0.520 0.695 0.063 0.564 0.130 0.695 0.203 0.392 0.000 0.695 0.249 0.317 0.000 0.695 0.249 0.283 0.000 0.695 0.249 0.253 0.000 0.695 0.249 0.226 0.000 0.695 0.249 0.202 0.000 0.695 0.249 0.180 0.000 0.695 0.249 0.161 0.000 0.695 0.249 0.446 0.143 0.695 0.695 0.695 0.695 0.695 0.695 0.695 0.695 0.695 0.695 0.695 0.65 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.632 0.492 0.446 0.446 0.446 0.446 0.446 0.446 0.446
Case study No. 4
Install a Variable Frequency Drive (VFD) for the Hot Air Generator (Coal Fired) Fan of Heater 2
Background
Tea industry utilizes significant amount of thermal energy for its drying applications. These drying requirements are met by utilizing a hot air generator. These hot air generators are oil / solid fuel fired systems and contributes significantly to the overall energy consumption of the plant. Several energy saving measures have been implemented in the hot air generators in various tea industries. One of the areas focused is on the fans installed in the hot air generators.
Present Status
In one of the tea plants, the coal-fired hot air generator supply fan was studied for possible energy savings. The hot air generator fans were damper controlled and open to the extent of 50% The pressure across the damper and at the fan delivery was measured. The pressure loss across the damper was found to be about 46%. The load on the fan is fluctuating in nature depending on temperature in the dryer.
Present Status
Damper control is an energy inefficient practice of capacity control as part of the energy fed to the fan is lost across the damper. Good potential for energy saving exists by avoiding damper control and to meet the varying requirement from the fan. This was achieved by installing a variable frequency drive (VFD) to the hot air generator fan. There were other spin-off benefits achieved by installation of a Variable Frequency Drive: ! Air temperature was precisely controlled and monitored ! There was no need to frequently stop the dryer due to high / low temperatures.
Benefits
Installation of a Variable Frequency Drive for the hot air generator (coal fired) supply fan has resulted in an annual savings of Rs. 0.117 millions. This required an investment of Rs. 0.11 millions with an attractive payback period of 12 months.

Centrifugal Fans Proposal-4:Install a Variable Frequency Drive (VFD) for the Hot Air Generator (Coal Fired) Fan of Heater 2 Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.110 -0.110 0.348 82.82% 0.110 0.088 0.117 0.010 0.095 0.022 0.117 0.034 0.066 0.000 0.117 0.042 0.053 0.000 0.117 0.042 0.048 0.000 0.117 0.042 0.043 0.000 0.117 0.042 0.038 0.000 0.117 0.042 0.034 0.000 0.117 0.042 0.030 0.000 0.117 0.042 0.027 0.000 0.117 0.042 0.024 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.117 0.11 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.107 0.083 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075
Case study No. 5
Install Variable Frequency Drive for Boiler Forced Draft (FD) Fan
Background
FD & ID fans contribute to a significant extent in the overall auxiliary power consumption of the boiler. Several steps have been taken in the FD & ID fans in the boiler to reduce the auxiliary power consumption. Matching the requirement with the design offers excellent potential in this regard.
Present status
In one of the small chemical unit, the following were the observations regarding the FD fan of the boiler: The design flow rate of the FD fan was 6300 m3/h while the actual operating requirement was measured to be about 1816 m3/h. The design capacity of the fan was much higher than the requirement. To match the operating parameters with the delivery of the fan, the suction of the fan is damper controlled.

Damper control is an energy inefficient practice of capacity control as part of the energy fed to the fan is lost across the damper. Good potential for energy saving exists by avoiding damper control and installing a variable frequency drive (VFD) to the boiler FD fan. The speed of the fan can be controlled to suit the requirement. The damper must be kept in full open condition once the VFD is installed.
Benefits
Installing VFD to the boiler FD fan resulted in an annual energy saving of Rs. 0.75 months. This called for an investment of Rs. 0.75 months and had a simple payback period of 12 months.


Centrifugal Fans Proposal-5:Install Variable Frequency Drive for Boiler Forced Draft (FD) Fan Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.075 -0.075 0.220 78.30% 0.075 0.060 0.075 0.005 0.062 0.015 0.075 0.022 0.043 0.000 0.075 0.027 0.034 0.000 0.075 0.027 0.031 0.000 0.075 0.027 0.027 0.000 0.075 0.027 0.024 0.000 0.075 0.027 0.022 0.000 0.075 0.027 0.019 0.000 0.075 0.027 0.017 0.000 0.075 0.027 0.048 0.015 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.070 0.053 0.048 0.048 0.048 0.048 0.048 0.048 0.048
Case study No. 6
Segregate Combustion Air and Atomising Air Supply to Furnace

Background
Oil fired system typically requires both combustion and atomizing air for effective combustion in the furnace. Typically, a single fan is provided to meet both the combustion as well as atomizing air requirements. The static pressure required for combustion and atomizing air are different. For atomizing the fuel, air pressure requirement is much higher than the combustion air requirement. The quantity of atomizing air requirement is only 15% of the total quantity of air requirement.
Present Status
In one of the engineering unit, the performance of the combustion air supply fan of the furnaces was studied in detail for possible energy saving. The observations made were as follows: A centrifugal fan of following specifications was in operation for both atomizing air and combustion air supply for the furnaces, ! Capacity ! Pressure 3000 cfm 28 WC
Static pressure measurements were carried out in the centrifugal fans. The pressure at the outlet of the centrifugal fan was measured as 500 mmWC. For atomizing the fuel, air pressure requirement (500 mm WC) is much higher than the combustion air requirement (100 mm WC). The quantity of atomizing air requirement is only 15% of the total quantity of air requirement. In the existing system a tapping from the main header at a pressure of 500 mmWC was taken and given for the atomizing air requirement. The damper provided at the inlet of the burner for combustion air supply was heavily throttled.

Throttling of damper results in significant pressure loss across the damper control and hence energy loss. Hence there was a good potential to save energy by avoiding the pressure loss across the control valve in the combustion air supply line. This was achieved by segregating the atomizing and combustion air supply and installing correct size fans.
Specifications of fans installed Atomising air

! Pressure ! Capacity 500 mmWC 600 cfm

Combustion air ! Pressure ! Capacity 100 mmWC 2400 cfm
After installing correct size fans the damper opening in the combustion air supply line was increased.
Benefits
The annual energy saving achieved by segregating combustion and atomizing air was Rs 0.157 millions. This required an investment of Rs 0.2 millions for new fans, which paid back in 16 Months.

Centrifugal Fans Proposal-6: Segregate Combustion Air and Atomising Air Supply to Furnace Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 0.432 62.71% 0.200 0.160 0.157 -0.001 0.141 0.040 0.157 0.042 0.092 0.000 0.157 0.056 0.072 0.000 0.157 0.056 0.064 0.000 0.157 0.056 0.057 0.000 0.157 0.056 0.051 0.000 0.157 0.056 0.046 0.000 0.157 0.056 0.041 0.000 0.157 0.056 0.036 0.000 0.157 0.056 0.101 0.032 0.157 0.157 0.157 0.157 0.157 0.157 0.157 0.157 0.157 0.157 0.157 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.158 0.115 0.101 0.101 0.101 0.101 0.101 0.101 0.101
Case study No. 7

Background
Air conditioning system is one of the major energy consumers in chemical & pharmaceutical units. The Air Handling Units (AHU) are one of the major auxiliary energy consumers in the air conditioning system. Nowadays, various plants have optimized the power consumption in AHUs. The performance of the AHUs are studied with re spect to the design specifications and in several plants, AHU fans have been observed to offer good potential.
Present status
In one of the pharmaceutical units, the specifications of AHU fans operating in syrup manufacturing area are given below. AHU Fan 1 5 8 Design Pressure (mm H2O) 87 87 87 Rated Capacity CFM 10,500 21,000 9,500 Developed pressure (mm H2O) 66 35 48

The plant team observed that there was a good potential to save energy by optimizing the operation of the fans and matching with requirements. The speed of the AHU fans were reduced by 10%. This was achieved by changing the size of the driver / driven pulleys.
Benefits

Centrifugal Fans Proposal-7: Reduce the Speed of AHU Fan in Syrup Manufacturing Area Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.146 115.44% 0.030 0.024 0.046 0.008 0.034 0.006 0.046 0.014 0.025 0.000 0.046 0.017 0.021 0.000 0.046 0.017 0.019 0.000 0.046 0.017 0.017 0.000 0.046 0.017 0.015 0.000 0.046 0.017 0.013 0.000 0.046 0.017 0.012 0.000 0.046 0.017 0.011 0.000 0.046 0.017 0.009 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.038 0.032 0.029 0.029 0.029 0.029 0.029 0.029 0.029 0.029
Case study No. 8
Replace the Low Efficiency Exhaust Fans with New Fans of Higher Efficiency
Background A fan is typically a mechanical device that causes a movement of air, vapour & other gases in a given system. In electroplating sections, fumes, which are produced during the process, are forcefully sucked and let out into the atmosphere using exhaust fans. This is a typical application where the volume of air to be handled becomes the only criterion for the selection of fan. Axial fans are ideally suited for such applications involving a lower head and higher volume of air to be handled. Their efficiency is also much better compared to centrifugal fans.
Previous status
In an engineering unit, manufacturing end rings for rotating equipment, the exhaust fan in the plating section was utilized to remove the fumes generated during the plating operation. A centrifugal fan was used for the purpose. The fan was catering to a head of 39 mm WC and delivering a flow of 14 m3/s, consuming 17.8 kW. The corresponding efficiency was only 39%.

Axial fans are capable of meeting head requirements upto 75 mm WC. These fans have better operating efficiency than the centrifugal fans, both in full loads and in partial loads. The minimum operating efficiency of an axial fan is about 65%. The existing plating section exhaust fan was replaced with a new axial fan of higher efficiency, having a capacity 15 m3/s and capable of developing a pressure head of 40 mm WC.
Financial Analysis
Implementation of this project resulted in an annual savings of Rs. 0.18 millions. The investment required for the fan was 0.1 million. The simple pay back period for the project was 7 months.
There is a tremendous potential to replace centrifugal fans with higher efficiency axial fans in applications where the required head is lower than 75 mm of WC.

Centrifugal Fans Proposal-8: Replace the Low Efficiency Exhaust Fans with New Fans of Higher Efficiency Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.100 -0.100 0.584 133.57% 0.100 0.080 0.180 0.036 0.129 0.020 0.180 0.057 0.098 0.000 0.180 0.065 0.082 0.000 0.180 0.065 0.073 0.000 0.180 0.065 0.065 0.000 0.180 0.065 0.058 0.000 0.180 0.065 0.052 0.000 0.180 0.065 0.047 0.000 0.180 0.065 0.042 0.000 0.180 0.065 0.037 0.180 0.180 0.180 0.180 0.180 0.180 0.180 0.180 0.180 0.180 0.18 0.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.144 0.123 0.115 0.115 0.115 0.115 0.115 0.115 0.115 0.115
Boilers & Steam System
Energy Conservation in Boilers & Steam
Boilers Introduction
Boilers are large mechanical equipment. In all boilers two primary processes are involved, viz. Combustion & release of heat from fuel (except waste heat boiler) and heat transfer and generation of steam from feed water. Most of the boiler components are designed with these two primary objectives in mind. Boilers vary widely in size and shape. The smallest industrial boiler could be of the size of a small living room while very large utility boilers could be taller that 100 maters and bigger than a tennis court in area. Boilers are classified under many different groupings. The most important classification relates to end use and hence are classified as industrial and utility boilers. Under each of the above groupings, boilers can be further classified on the basis of the heat source (coal, oil, gas, biomass or waste heat) and can be generating steam temperatures ranging from saturation level to super heated steam with 600o C temperature. In all the cases, design involves sizing of the boiler to achieve the most efficient method of extracting and transferring this heat to water and generate steam. There are special boilers used for heating organic compounds like thermic fluids and the guiding principles remain the same in their cases also. The ultimate purpose of the boiler is to take out the energy from fuel through the medium of steam. The heat that can be carried through by steam would depend on the steaming rate, pressure and temperature of steam. It is therefore necessary that these parameters are chosen with adequate care to effect energy economy. In most of the industrial applications the steam quantity is directly dictated by the mass flow requirements of the end use. However, the pressure and temperature can be so chosen, that the steam can be put to use for power generation through a steam turbine before being drawn for the process use. The choice of pressure and temperature would then depend on the final required steam pressure. In order to allow flexibility of operations, the design quantity of steam generation can be kept 10% to 15% higher than the maximum anticipated steam requirements. It is also necessary, not to prescribe high boiler outlet pressure as it may end up with large scale pressure reduction in process steam requirements.
Steam System
Steam has been a popular mode of conveying energy, since the industrial revolution. The following characteristics of steam make it so popular and useful to the industry: ! ! ! ! Highest specific heat and latent heat Highest heat transfer coefficient Easy to control and distribute Cheap and inert
Steam is used for generating power and also used in process industries, such as, sugar, paper, fertilizer, refineries, petrochemicals, chemical, food, synthetic fibre and textiles. In the process industries, the high pressure steam produced in the boiler is first expanded in a steam turbine for generating power. The extraction or bleed from the turbine, which are generally at low pressure, are used for the process.
This method of producing power, by the steam generated for process in the boiler, is called cogeneration. Steam generated in a boiler, is distributed through a network for various process application, after conditioning the steam to suit process requirement. Efficient transmission and utilization of steam is essential, for maintaining the required steam parameters at every utility point, in the power and process industries. This can be achieved by keeping the transmission losses & heat losses to a minimum value and recovery of heat, wherever possible.
Case study No. 1
Utilize Existing Economiser for Feed Water Preheating

Background
The maximum loss in efficiency occurring in the boiler is in the form of flue gas loss. As a thumb rule, every 220C reduction in flue gas exit temperature results in 1% increase in operating efficiency of the boiler. Having realized this, several industries are taking up measures to reduce the flue gas exit temperature by recovering the heat available in it. One of the excellent options for reducing the flue gas exit temperature is installation of an economiser. The heat available in flue gas is utilized for preheating boiler feed water, thereby saving on the fuel fired.
Present status
In one of the automotive ancillary unit, the flue gas exit temperature from a boiler of capacity 1.2 TPH was about 220-230oC. The review of the boiler internals indicated that the boiler does not have any economiser for recovering heat from the flue gas. The waste heat available in the flue gas was not being utilized.

Good potential for energy saving exist by installing a low-pressure economiser and utilizing the waste heat available to preheat the feed water fed into the boiler. The plant team installed a low-pressure economiser and utilized the heat available in the flue gas. This step helped them in reducing the flue gas exit temperature by more than 50oC, resulting in 2% increase in efficiency.
Benefits
Implementing this proposal resulted in an annual energy saving of Rs. 0.067millions. This called for an investment of Rs.0.1 million and had a simple payback period of 18 months.


Boilers & Steam Systems Proposal-1: Utilize Existing Economiser for Feed Water Preheating Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.100 -0.100 0.174 54.11% 0.100 0.080 0.067 -0.005 0.064 0.020 0.067 0.017 0.040 0.000 0.067 0.024 0.031 0.000 0.067 0.024 0.027 0.000 0.067 0.024 0.024 0.000 0.067 0.024 0.022 0.000 0.067 0.024 0.019 0.000 0.067 0.024 0.017 0.000 0.067 0.024 0.015 0.000 0.067 0.024 0.043 0.014 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.1 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.072 0.050 0.043 0.043 0.043 0.043 0.043 0.043 0.043
Case study No. 2
Optimize the Frequency of Boiler Blow Down

Background
Boiler blow down is carried out to ensure the safety and reliability of the boiler. In this operation, some quantity of energy, in the form of heat is lost. Though blow down is an essential activity, the quantum of energy lost could be optimized.
Present status
An automotive rubber component manufacturing facility had 2 boilers rated for a total capacity of 1.0 TPH. Boiler blow down was carried out by the plant team twice a shift, once during the lunch time and the other during the shift change time, 6 times a day in total. The plant team tried to estimate the blow down quantity, the estimated value being 60 lts / blow-down. The blow down was being carried out without any measurement. The TDS requirement mentioned by the OEM was 3000 ppm. However, when the plant team procured a TDS meter and measured the TDS content in the blow down water, the present TDS level in the boiler blow-down water was 750 ppm only.

Increased number of blow-downs was resulting in increased heat input into the system to heat the make up water from the ambient temperature to the operating temperature of 140oC. Energy saving opportunity existed in optimising the frequency of boiler blow-down. The plant team reduced the frequency of boiler blow-down from the present rate of twice a shift to once a shift. The TDS level was maintained < 2500 ppm.
Benefits
Optimising the frequency of boiler blow-down resulted in an annual energy saving of Rs. 0.032 millions. This called for any investment of Rs. 0.03 millions for TDS measurement and has a simple payback period of 12 months.


Boilers & Steam Systems Proposal-2: Optimize the Frequency of Boiler Blow Down Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.095 83.04% 0.030 0.024 0.032 0.003 0.026 0.006 0.032 0.009 0.018 0.000 0.032 0.011 0.015 0.000 0.032 0.011 0.013 0.000 0.032 0.011 0.012 0.000 0.032 0.011 0.010 0.000 0.032 0.011 0.009 0.000 0.032 0.011 0.008 0.000 0.032 0.011 0.007 0.000 0.032 0.011 0.021 0.007 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.032 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.029 0.023 0.021 0.021 0.021 0.021 0.021 0.021 0.021
Case study No. 3
Optimise Combustion Air in Boilers

Background The maximum loss in efficiency occurring in the boiler is in the form of flue gas loss. One of the excellent options for reducing the flue gas exit temperature is to reduce the quantity of excess air supplied along with fuel for combustion. The excess air in flue gas is monitored by measuring the oxygen content in flue gas. Higher the oxygen level, higher will be the excess air sent and lower will be the combustion efficiency (increases fuel consumption).
Present status
An automotive rubber component manufacturing facility had 2 boilers rated for a total capacity of 1.0 TPH. The combustion analysis was carried out to analyse the oxygen % in flue gas. The combustion analysis of the boiler revealed the following: ! Oxygen ! Carbon Monoxide ! Flue gas temperature = < = 17.2 18.0% 250 ppm 220C

The optimum oxygen level in the exhaust gas for oil-fired systems is 3-4%. Any boiler having a higher oxygen level than the optimum offers a good potential for finetuning and optimisation. Good potential for energy saving exists in optimizing the excess air in flue gas. The plant team adopted the following measures: ! They procured a portable combustion analyser to measure oxygen and CO levels ! Combustion analysis was carried out on a regular basis every fortnight. The flue gas parameters were monitored and maintained (reduce the excess air by throttling the inlet air supply) the following parameters: ! Oxygen in flue gas ! Carbon monoxide = < 6% 50 ppm
This exercise was incorporated as a part of regular preventive maintenance schedule.
Benefits
Optimizing the excess air in flue gas has resulted in an annual energy saving is Rs.0.1 million. This called for an investment (for combustion analyser) of Rs. 0.05 million, which had a simple payback period of 6 months.


Boilers & Steam Systems Proposal-3: Optimise Combustion Air in Boilers Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.050 -0.050 0.328 147.05% 0.050 0.040 0.100 0.022 0.070 0.010 0.100 0.032 0.054 0.000 0.100 0.036 0.046 0.000 0.100 0.036 0.041 0.000 0.100 0.036 0.036 0.000 0.100 0.036 0.032 0.000 0.100 0.036 0.029 0.000 0.100 0.036 0.026 0.000 0.100 0.036 0.023 0.000 0.100 0.036 0.021 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.1 0.05 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Annual Savings Rs. 0.1 million Investment Rs. 0.05 millions Simple payback 6 months
0.078 0.068 0.064 0.064 0.064 0.064 0.064 0.064 0.064 0.064
Case study No. 4
Replace Electrical Heating with Steam Heating in Furnace Oil Day Tank
Background
All the smaller capacity industrial boilers are furnace oil fired systems. The furnace oil requires heating and tracing to maintain viscosity to ensure fluidity. The normal practice is to install electrical heating systems in furnace oil main storage tank and day tank. Various plants have now converted the electrical heating system to steam heating system in day tank too. This step is carried out considering the cost of electrical and thermal heating systems.
Present status
In one of the soft drink bottling units, the following observations were made regarding the furnace oil heating system: Furnace oil was used as fuel in the boiler. The furnace oil in the day tank was maintained at a temperature of 50-550C. Electrical heaters were used for the heating applications in the day tank. The cost of electrical heating and thermal heating was analysed based on the cost of fuel. The costs of electrical heating and thermal heating are given below. ! Cost of electrical heating Rs 4302 / MM kCal Rs 1279 / MM kCal
! Cost of thermal heating (Steam) -

The cost of thermal heating system was observed to be only 30% of the cost of the electrical heating system. Hence, the plant team installed steam coils with temperature controls in the furnace oil day tank for heating the furnace oil. This steam was utilized for heating application in the day tank. The existing electrical heaters were kept as standby. The electrical heaters were utilised for maintaining the required temperature whenever there was no steam generation.
Benefits
The annual energy saving achieved by installing thermal heating system in day tank was Rs. 0.039 millions. This required an investment of Rs. 0.05 millions for installing steam coils with temperature control, which paid back in 15 Months.


Boilers & Steam Systems Proposal-4: Replace Electrical Heating with Steam Heating in Furnace Oil Day Tank Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.050 -0.050 1.415 538.15% 0.050 0.040 0.400 0.129 0.242 0.010 0.400 0.140 0.207 0.000 0.400 0.144 0.183 0.000 0.400 0.144 0.163 0.000 0.400 0.144 0.146 0.000 0.400 0.144 0.130 0.000 0.400 0.144 0.116 0.000 0.400 0.144 0.104 0.000 0.400 0.144 0.092 0.000 0.400 0.144 0.257 0.083 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.4 0.05 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.271 0.260 0.257 0.257 0.257 0.257 0.257 0.257 0.257
Case study No. 5
Install Variable Frequency Drive for Boiler Forced Draft (FD) Fan
Background
Present status
In one of the small chemical unit, the following were the observations regarding the FD fan of the boiler: The design flow rate of the FD fan was 6300 m3/h while the actual operating requirement was measured to be about 1816 m3/h. The design capacity of the fan was much higher than the requirement. To match the operating parameters with the delivery of the fan, the suction of the fan is damper controlled.

Damper control is an energy inefficient practice of capacity control as part of the energy fed to the fan is lost across the damper. Good potential for energy saving exists by avoiding damper control and installing a variable frequency drive (VFD) to the boiler FD fan. The speed of the fan can be controlled to suit the requirement. The damper must be kept in full open condition once the VFD is installed.
Benefits
Installing VFD to the boiler FD fan resulted in an annual energy saving of Rs. 0.075 millions. This called for an investment of Rs. 0.075 millions and had a simple payback period of 12 months.


Boilers & Steam Systems Proposal-5: Install Variable Frequency Drive for Boiler Forced Draft (FD) Fan Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.075 -0.075 0.220 78.30% 0.075 0.060 0.075 0.005 0.062 0.015 0.075 0.022 0.043 0.000 0.075 0.027 0.034 0.000 0.075 0.027 0.031 0.000 0.075 0.027 0.027 0.000 0.075 0.027 0.024 0.000 0.075 0.027 0.022 0.000 0.075 0.027 0.019 0.000 0.075 0.027 0.017 0.000 0.075 0.027 0.048 0.015 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0.075 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.070 0.053 0.048 0.048 0.048 0.048 0.048 0.048 0.048
Case study No. 6
Install Variable Speed Drives (VSD) for ID Fans

Background
Present status
The plant had one Bagasse fired boiler rated for 60 TPH, 61 ata, 480 deg C. Two ID fans were installed which were rated for 1,20,000 m3/h at 650 mm WC. It is observed that both the fans are being operated with the inlet dampers open at 20 to 30 %. Pressure drops across the dampers and pressure rise of the fans were measured and was observed to be more than 50 % of the total pressure rise in the fans. This was resulting in a significant energy loss in the system.

The stochiometric air requirement for bagasse is about 2.88 kg/kg of bagasse. The air to be handled by the fans was about 1,30,000 m3/h ( with excess air of 50 %) and the resistance to the fan is about 230 mm WC. The best option is to install VSDs for both the existing fans. This ensured salvaging of the existing losses across the dampers. With this arrangement, it was possible to operate only one fan at lower loads.
Benefits
Implementation of this proposal resulted in an annual energy savings of Rs.2.735 millions. This required an investment of Rs.0.20 millions, which paid back in 9 months time.


Boilers & Steam Systems Proposal-6: Install Variable Speed Drives (VSD) for ID Fans Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 9.754 901.79% 0.200 0.160 2.730 0.922 1.614 0.040 2.730 0.965 1.407 0.000 2.730 0.979 1.246 0.000 2.730 0.979 1.113 0.000 2.730 0.979 0.993 0.000 2.730 0.979 0.887 0.000 2.730 0.979 0.792 0.000 2.730 0.979 0.707 0.000 2.730 0.979 0.631 0.000 2.730 0.979 1.751 0.564 2.730 2.730 2.730 2.730 2.730 2.730 2.730 2.730 2.730 2.730 2.73 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.808 1.765 1.751 1.751 1.751 1.751 1.751 1.751 1.751
Case study No. 7
Install Blow down Heat Recovery System for the Boiler

Background
Boiler blow down is carried out to ensure the safety and reliability of the boiler. In this operation, some quantity of energy, in the form of heat is lost. Though blow down is an essential activity, the quantum of energy lost could be optimized. Several plants have implemented boiler blow down heat recovery system to utilize this heat and reuse in the boiler itself.
Present status
In one of the bulk drug manufacturing unit, the possibility of recovering the heat from the boiler blow down was explored. The observations made regarding the boiler blow down are given below. In this pharmaceutical unit, an oil-fired boiler was in operation for steam generation. The average steam generation was about 2-2.5 tons/h. The steam to fuel ratio maintained was about 16: 1. In the boiler, intermittent blow down was practiced. The blow down was automatically done based on the TDS level. The TDS level in the boiler drum was maintained at 5000 ppm. The quantity of blow down is estimated as 8% of the total quantity of steam generated i.e about 5 tons/day. Normally the blow down from the Boiler would be about 1-2% for the feed water with TDS level of less than 100 ppm. The blow down quantity here was high due to higher TDS content in the feed water (350 to 400 ppm). These higher blows down was leading to to higher heat loss and hence lower operating efficiency of boiler.

The blow down water was drained and the flash steam is exhausted to atmosphere. There was a good potential to recover the heat from the boiler blow down and preheat the boiler feed water. The heat recovery was carried out by installing a flash vessel for recovering the flash steam from the blow down. The flash steam was separated and quenched by spraying the boiler feed water. The hot water was taken to the boiler feed water tank. The drain from the flash vessel was at a temperature of 80oC. The heat from the drain was recovered by preheating a part of feed water by passing through a heat exchanger. The low temperature blow down was drained out. The heat recovery from the blow down has been installed in many plants successfully.

Benefits
The annual energy saving achieved by installing boiler blow down heat recovery system was Rs 0.67 millions. This required an investment of Rs 0.8 millions for installing the heat recovery system. This had a simple payback period of 14 Months.

Boilers & Steam Systems Proposal-7: Install Blow down Heat Recovery System for the Boiler Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.800 -0.800 1.878 66.57% 0.800 0.640 0.670 0.011 0.589 0.160 0.670 0.183 0.388 0.000 0.670 0.240 0.306 0.000 0.670 0.240 0.273 0.000 0.670 0.240 0.244 0.000 0.670 0.240 0.218 0.000 0.670 0.240 0.194 0.000 0.670 0.240 0.174 0.000 0.670 0.240 0.155 0.000 0.670 0.240 0.138 0.670 0.670 0.670 0.670 0.670 0.670 0.670 0.670 0.670 0.670 0.67 0.8 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.659 0.487 0.430 0.430 0.430 0.430 0.430 0.430 0.430 0.430
Chillers & Auxiliaries
Energy Conservation in Chillers & Auxiliaries
Introduction With the advent of technology and development of science, more and more buildings are coming up requiring specialized services for comfortable human habitation. One of the most important dimensions which is now no more a luxury but has become almost a necessity is air-conditioning. Almost all occupied areas where people work and where equipment is housed are either properly ventilated or air-conditioned depending upon the need. The equipment such as refrigeration compressors, condensers, evaporators, condenser water pumps, chilled water pumps, cooling tower and general insulation practices are common for both refrigeration and air-conditioning systems. Vapour Absorption Chiller These chillers are ideally suited where waste heat or steam from turbines outlet (Cogeneration system) is available. Apart from conventional waste heat sources, the heat in the jacket water of DG sets can also be utilized in vapor absorption machines. For example, with jacket water of 6 MW DG set, approximately 225 TR at 8oC can be generated. This gives an idea of the potential for vapour absorption chiller. Hence, absorption chiller is preferred the following situations: ! Plants with Co-generation ! Waste heat source is available. ! High capacity DG sets where jacket water can be utilized for absorption chiller. ! Where the power cost is phenomenally high The disadvantage of vapor absorption chiller is that the condenser water flow requirement is 1.5 to 1.8 times when compared to vapour compression system for a given tonnage of refrigeration. The evaporation rate at cooling towers being high, more make up water is required at cooling tower. So, wherever, the water availability is problem, the selection of vapour absorption chillers becomes difficult.

Case study No. 1
Optimise the Condenser Cooling Water Supply to the Chilling Plant

Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. Condenser water flow rate is designed to cater to the maximum operation of the chiller and for extreme climatic conditions. These conditions were a rarity. Good potential for energy saving exists in condenser water pumps.
Present Status
In a chemical unit, a refrigeration unit of capacity 125 TR was in operation for chilled water requirement in the plant. The condenser cooling system for the refrigeration unit was studied in detail. The observations made during the detailed energy audit were as follows: " Two centrifugal pumps of following specifications were in operation for the cooling water supply to the condenser of the refrigeration unit. ! Capacity ! Head 125 TR 30 m
Two pumps were installed with variable frequency drive and operated at a reduced frequency of 42.5 Hz. " During the study, it was observed that cooling water flow takes place through the idle condenser also. Cooling water flow through the idle condenser was not necessary. This led to excess power consumption in the cooling water pumps for pumping the excess cooling water. " The control valve provided at the outlet of the condenser was throttled. This was done to maintain a pressure of 1 kg/cm2 at the outlet of the condenser, which in turn given a feed back to the pressure based interlock to the compressor. The valve control leads to pressure loss across the control valve and hence energy loss.

" Excluding the excess cooling water flow across idle condensers, the quantity of cooling water requirement for a refrigeration unit of capacity 125 TR was estimated as 105 m3/hr. For the estimated quantity of cooling water, operating one pump of the above mentioned capacity is sufficient. " A trial was taken by the plant team by operating one pump at the reduced operating frequency of 45Hz for the condenser cooling water supply. The trial was successful. The refrigeration unit was operating well.
Benefits The annual energy saving achieved by implementing this proposal was Rs 0.093 millions. This did not require any investment.

Case study No. 2
Improve Control Systems for Air Conditioning Compressors

Background
Conventional control systems in air conditioning compressors fail to provide precise and accurate control. The latest trend is to install microprocessor based control systems in air conditioning systems. It offers the following advantages: ! Precise temperature control in rooms ! Optimization of number of compressors in operation ! Energy saving in compressors
Present status
In one of the commercial buildings, the air conditioning system was studied in detail for possible energy saving. The review of the control system of the air conditioners indicated that the compressors were being operated with manual control. The compressors were put on or off depending on the room temperature and feedback from occupants. There was no automatic control system for the air conditioners. Sub-cooling has been observed in several areas during the day.

The ideal control system for air conditioning compressors should be automatic control based on return air temperature. Good potential for energy saving exists by installing control systems and optimizing the operation of compressors in air conditioners. The plant team installed microprocessor based automatic control systems for the air conditioners. The control was based on the return air temperature.
Benefits
The annual energy saving achieved by installing the control system was Rs. 0.114 millions. This called for an investment of Rs. 0.16 millions and had a simple payback period of 17 months.

Chillers & Auxiliaries Proposal-2: Improve Control Systems for Air Conditioning Compressors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.160 -0.160 0.303 57.31% 0.160 0.128 0.114 -0.005 0.106 0.032 0.114 0.029 0.067 0.000 0.114 0.041 0.052 0.000 0.114 0.041 0.046 0.000 0.114 0.041 0.041 0.000 0.114 0.041 0.037 0.000 0.114 0.041 0.033 0.000 0.114 0.041 0.030 0.000 0.114 0.041 0.026 0.000 0.114 0.041 0.073 0.024 0.114 0.114 0.114 0.114 0.114 0.114 0.114 0.114 0.114 0.114 0.114 0.16 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.119 0.085 0.073 0.073 0.073 0.073 0.073 0.073 0.073

Case study No. 3
Install Tics For Window Air conditioning

Background
One of the energy saving devices utilized for window air conditioners were the automatic temperature indicator & controllers (TIC). These energy savers optimise the window and split air conditioners power consumption. Energy savers / controllers continuously sense on-off cycle from thermostat and load conditions. Based on the analysis and its predictive intelligence, the operation of A/c is optimally controlled. The advantages of this system were: " Constant temperature is maintained " Maintains low temperature band between minimum & Maximum temperature setting of thermostat " Energy savings of 10% is possible
Present status
There were about 15 window air conditioners running all day through in server rooms in one of the commercial banking building. All the air conditioners were operating with thermostat controllers. This was resulting in sub-cooling in many rooms.

The plant team installed energy savers for all the window air conditioners. Continuous monitoring of power consumption of all the window air conditioners were also carried out to sustain the savings.
Benefits
The annual savings achieved by installation of energy saver was Rs.0.083 millions. The investment required was Rs. 0.120 millions, which paid back in 18 months.

Chillers & Auxiliaries Proposal-3: Install Tics For Window Air conditioning Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.120 -0.120 0.218 55.75% 0.120 0.096 0.083 -0.005 0.078 0.024 0.083 0.021 0.049 0.000 0.083 0.030 0.038 0.000 0.083 0.030 0.034 0.000 0.083 0.030 0.030 0.000 0.083 0.030 0.027 0.000 0.083 0.030 0.024 0.000 0.083 0.030 0.021 0.000 0.083 0.030 0.019 0.000 0.083 0.030 0.053 0.017 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.083 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.088 0.062 0.053 0.053 0.053 0.053 0.053 0.053 0.053

Case study 4
Avoid Hot Well Pump Operation in Chilled Water System by Connecting Return Header Directly to Chiller
Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. The pumping system offers substantial potential for energy saving.
Present status
The chilled water system in a pharmaceutical unit, comprising of the chiller compressor, hot well & cold well pumps was studied for possible energy savings. The observations made on the system were as follows: ! The design specifications of the pumps were:
Hot Well pump

! Capacity ! Head ! Motor 600 m3/h 50 m WC 110 kW (77.3 kW)
Cold Well pump

! Capacity ! Head ! Motor 600 m3/h 20 m WC 45 kW (35.4 kW)
" The hot well pump was used to pump the hot return water from the hot well though the chiller to the cold well. While, the cold well pump was used to pump chilled water from the cold well to the process users. " The cold well pump was being operated with valve throttling (60% open). This indicated the excess capacity/ head available in the pump. " The chilled water header was maintained at a pressure of 3.6 kg/cm2. The pump delivery pressure (before delivery valve) was 4.4 kg/cm 2. This implies that pressure drop across the delivery valve was 18%. " Apart from this, the pump was also being operated with recirculation control. A part of the chilled water from the cold well pump discharge is sent back to the hot well, by-passing the process users. " The pressure in the return chilled water header was about 1.7 - 2.2 kg/cm2, depending on the number of users in operation. This pressure was dropped across a valve on the return header, which is connected to the hot well.
" The pressure required at the inlet to the chiller is about 1.8 2.0 kg/cm2. The pressure at the outlet of the chiller was 0.7 kg/cm2, indicating that the pressure drop across chiller is about 1.0 1.3 kg/cm2.

The cold well pump had sufficient design head to cater to the requirements of the process as well as the chiller pressure drop. By operating the cold well pump without recirculation and increased valve opening, the operation of hot well pump could be avoided. Thus, there is good potential to use the excess head available in the cold well pump, to pass the chilled water return line directly to the chiller and avoid the hot well pump operation. The plant team connected the return chilled water line from process, directly to the chiller, so that, the operation of hot well pump can be totally avoided. With this modification, the hot and cold well became a single large cold well. There was a rare possibility of all the users, not in operation. To avoid the possibility of chillers starving for water during this condition, an automatic bypass line with a pressure sensing control was provided from the supply to return header.
Benefits
The annual energy saving achieved by this proposal was Rs. 0.535 millions. This required an investment (for return line modification & bypass line) of Rs. 0.15 millions, which had an attractive simple payback period of 4 months.


Chillers & Auxiliaries Proposal-4: Avoid Hot Well Pump Operation in Chilled Water System by Connecting Return Header Directly to Chiller Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.150 -0.150 1.835 250.69% 0.150 0.120 0.535 0.149 0.345 0.030 0.535 0.181 0.282 0.000 0.535 0.192 0.244 0.000 0.535 0.192 0.218 0.000 0.535 0.192 0.195 0.000 0.535 0.192 0.174 0.000 0.535 0.192 0.155 0.000 0.535 0.192 0.139 0.000 0.535 0.192 0.124 0.000 0.535 0.192 0.343 0.110 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.535 0.15 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.386 0.354 0.343 0.343 0.343 0.343 0.343 0.343 0.343
Case study No. 5
Install Variable Frequency Drive (VFD) for the Chilled Water Supply Pumps
Background
The auxiliaries in the chilling system contribute significantly to the overall power consumption of the unit. The auxiliaries include chilled water pumps, AHU fans and condenser water pumps. The pumping system offers substantial potential for energy saving
Present status
Chilled water system is one of the major electrical energy consumers in this chemical unit. There were 4 nos. of (normally 2 in operation, 2 as standby) Screw type chiller compressors of 725 TR, 600 kW rating with NH3 as the refrigerant for chilled water generation. The operation of the chilled water supply pump was studied for possible energy savings. The observations on the system were as follows: There were 3 chilled water supply pumps (1 in operation, 2 as standby) for supply of chilled water to the different users in the plant. The design specifications of the pump were: " Capacity " Head " Motor Rating 600 m3/h 50 m WC 110 kW (77.3 kW)
The pump was operated with discharge valve throttling. The required header pressure to ensure chilled water flow to all the users was about 3.6 kg/cm2 (or 36 m WC). This confirmed that the pump has excess design head, which is controlled using the delivery valve. The measured pressure drop across the delivery valve was about 18% of the total head developed by the pump. Moreover, the pump is also operating with recirculation control. The chilled water demands of the process were varying in nature - not all the users require chilled water at the same time.

The operation of a pump with valve throttling and recirculation controls is energy inefficient methods of capacity control. The best energy efficient method of capacity control is to vary the RPM of the pump, matching the requirements. This can be best achieved with a variable frequency drive.

The plant team installed a variable frequency drive (VFD) for the chilled water supply pump and operated at a lower RPM. The pump was operated with a closed loop pressure sensor control. After installation of VFD, valve throttling was completely avoided.
Benefits
The annual energy saving achieved by implementing this proposal was Rs. 0.677 millions. This required an investment (for VFD and controls) of Rs 1.2 millions, which had a simple payback period of 21 months.

Chillers & Auxiliaries Proposal-5: Install Variable Frequency Drive (VFD) for the Chilled Water Supply Pumps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -1.200 -1.200 1.629 45.93% 1.200 0.960 0.677 -0.102 0.695 0.240 0.677 0.157 0.415 0.000 0.677 0.243 0.309 0.000 0.677 0.243 0.276 0.000 0.677 0.243 0.246 0.000 0.677 0.243 0.220 0.000 0.677 0.243 0.196 0.000 0.677 0.243 0.175 0.000 0.677 0.243 0.157 0.000 0.677 0.243 0.140 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 0.677 1.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.779 0.520 0.434 0.434 0.434 0.434 0.434 0.434 0.434 0.434
Case study No. 6
Utilise the Spare Condensers in Chilled Water and Chilled Brine System
Present status
The refrigeration system was one of the major electrical energy consumers in the entire plant. The plant had a chilled water system operating at about +7C and a chilled brine system operating at about 10C. The plant had a total connected chilled water load of 2900 TR, comprising of 4 systems of 725 TR each. Similarly, the total chilled brine load in the plant was about 144 TR, comprising of 2 systems of 72 TR each. For day-to-day operations, only 2 systems of 725 TR capacities each of chilled water system and 1 system of 72 TR capacity-chilled brine was in operation. This implied that chilled water & chilled brine systems have 100% back-up. Each chilled water system had two sets of condensers, operating in parallel. The present cooling water flow through each of the condensers was 325 m3/h. The pressure drop across condenser on the cooling water side was about 3.0 kg/cm2, which was very high. Similarly, the pressure of NH3 at the inlet to condensers was about 15.0 kg/cm2. This corresponds to a temperature of 75 80C, which was the superheat temperature. Hence, additional power was consumed for cooling NH3 from the superheat temperature of 75C to 40C, which was the saturation temperature of NH3 at 15.0 kg/cm2. The present LMTD of heat transfer, for cooling water T of 6C (inlet at 30C and outlet at 36C) was 6.54C. There was a good potential to utilise the spare condensers of the stand-by systems for increasing the area available for cooling and also achieve energy savings.

This utilisation of the spare condensers can result in the following advantages: ! Lower system pressure for cooling water ! Lower refrigerant temperature in condenser ! Lower chiller compressor power consumption Action Plan to be adopted " Connect all the compressor discharges, at the outlet of the oil separators to a common loop header. " The loop header should be provided with isolation valves in such a way that, any of the compressor discharges could be connected to any one of the condenser sets.

" The outlet from the individual condensers sets should also be connected to a loop header. This loop header should also be provided with isolation valves, such that, the outlet from any of the condenser sets can be taken to the individual receivers.
Advantages 1. Reduction in pressure drop across condenser

The utilisation of the spare condensers results in doubling of area available for cooling. For the same total volumetric flow rate and double the area, the velocity of flow reduces by 50%. The pressure drop across a condenser is proportional to the square of velocity, i.e., P V2. Hence, with reduction in velocity by 50%, the pressure drop across the system will reduce by 1/4th. The pressure drop across condensers will reduce from the earlier 3.5 kg/cm2 to about 0.875 kg/cm2. This will in turn reduce the actual head requirements of cooling water pumps at UCT. The estimated head requirement of the pumps, with the proposed modifications was, 3.0 kg/cm2 (or 30 m WC), as against the present design head of 43 m WC.
2. Reduction in condenser pressure

NH3 entering the condenser was at a pressure of 15.0 kg/cm2. This corresponds to a superheat temperature of 75 80C. Hence, cooling load will comprise of cooling the superheat from 75C to 40C (the saturation temperature at 15.0 kg/cm2), condensing NH3 at the constant temperature of 40C and sub-cooling of NH3 at constant pressure. The major cooling load will be the condensing of NH3 at its saturation temperature of 40C. The estimated LMTD for this condensing was 6.54C. With the doubling of condensing area, the overall heat transfer was assumed to remain the same. Therefore, the cooling water inlet and outlet temperatures would also remain the same. Since, heat transfer coefficient (velocity)0.8, the doubling of area would lead to reduction of velocity by 50% and heat transfer coefficient by 0.57 times that of the original. The estimated LMTD with this new heat transfer coefficient would be 5.73C, resulting in a LMTD reduction by 1.3C. Typically, for every 1C reduction in condensing temperature, there will be about 3 4% reduction in compressor power consumption.
Benefits
The annual energy saving achieved by interconnecting the spare condensers was Rs. 1.48 millions. This required an investment (for proposed modifications) of Rs. 0.8 millions and with an attractive simple payback period of 7 Months.

Chillers & Auxiliaries Proposal-6: Utilise the Spare Condensers in Chilled Water and Chilled Brine System Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.800 -0.800 4.813 136.95% 0.800 0.640 1.480 0.301 1.052 0.160 1.480 0.474 0.802 0.000 1.480 0.531 0.676 0.000 1.480 0.531 0.603 0.000 1.480 0.531 0.539 0.000 1.480 0.531 0.481 0.000 1.480 0.531 0.429 0.000 1.480 0.531 0.383 0.000 1.480 0.531 0.342 0.000 1.480 0.531 0.949 0.306 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.480 1.48 0.8 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.179 1.006 0.949 0.949 0.949 0.949 0.949 0.949 0.949

Case study No. 7
Replace Shell & Tube Condensers with Evaporative Condensers in Refrigeration System
Background
One of the pharmaceutical units had water-cooled condensers for their chilled water and chilled brine systems. The cooling water required for this purpose was catered from the process cooling tower. The present trend in the industry is to replace the shell & tube type condensers with evaporative condensers. The evaporative condensers consume only about 20% of the total power consumption of a typical shell & tube condenser system. A schematic diagram of the system was shown below: Air Out
Refrigerant In
Refrigerant Out Air In
In the system, the refrigerant piping is taken out into a tube coil bundle, located within the evaporative condenser body. A small quantity of cooling water was sprayed over the coils, and an induced draft was created in the system, using a fan located at the top of the unit. This forced evaporative-cooling enhances the heat transfer rate. The other salient features of evaporative condensers as compared to shell & tube condensers are as below: " " " " " Improved water to air contact Increased water flow rate over the refrigerant coil Enhanced heat transfer resulting in lower condensing temperature Lower static head requirement of pump Lower pressure drop across tube coil bundle, leading to reduction in fan power consumption " Compact modular design " Easy maintenance
All the above characteristics lead to lower pump and fan power consumption typically only 20% of that of shell & tube condensers.

The plant team converted the existing shell & tube heat exchangers with Evaporative Condensers. The previous pump and fan power consumption was 216 kW (165 kW for pumps and 51 kW for fans). With the evaporative condensers, the total power consumption was less than 50 kW.
Benefits
The annual energy savings achieved by installing evaporative condensers was Rs.3.10 millions. This required an investment (for evaporative condensers) of Rs.7.50 millions and paid back in 29 months.

Chillers & Auxiliaries Proposal-7: Replace Shell & Tube Condensers with Evaporative Condensers in Refrigeration System Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -7.500 -7.500 6.083 33.61% 7.500 6.000 3.100 -1.040 3.697 1.500 3.100 0.574 2.014 0.000 3.100 1.112 1.415 0.000 3.100 1.112 1.263 0.000 3.100 1.112 1.128 0.000 3.100 1.112 1.007 0.000 3.100 1.112 0.899 0.000 3.100 1.112 0.803 0.000 3.100 1.112 0.717 0.000 3.100 1.112 0.640 3.100 3.100 3.100 3.100 3.100 3.100 3.100 3.100 3.100 3.100 3.1 7.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
4.140 2.526 1.988 1.988 1.988 1.988 1.988 1.988 1.988 1.988

Case study No. 8

Background
Air conditioning system was one of the major energy consumers in chemical & pharmaceutical units. The Air Handling Units (AHU) were one of the major auxiliary energy consumers in the air conditioning system. Nowadays, various plants have optimized the power consumption in AHUs. The performance of the AHUs were studied with respect to the design specifications and in several plants, AHU fans have been observed to offer good potential.
Present status
In one of the pharmaceutical units, the specifications of AHU fans operating in syrup manufacturing area were given below. AHU Fan 1 5 8 Design Pressure (mm H2O) 87 87 87 Rated Capacity Cfm 10,500 21,000 9,500 Developed pressure (mm H2O) 66 35 48

The plant team observed that there was a good potential to save energy by optimizing the operation of the fans and matching with requirements. The speed of the AHU fans were reduced by 10%. This was achieved by changing the size of the driver / driven pulleys.
Benefits


Chillers & Auxiliaries Proposal-8: Reduce the Speed of AHU Fan in Syrup Manufacturing Area Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.030 -0.030 0.146 115.44% 0.030 0.024 0.046 0.008 0.034 0.006 0.046 0.014 0.025 0.000 0.046 0.017 0.021 0.000 0.046 0.017 0.019 0.000 0.046 0.017 0.017 0.000 0.046 0.017 0.015 0.000 0.046 0.017 0.013 0.000 0.046 0.017 0.012 0.000 0.046 0.017 0.011 0.000 0.046 0.017 0.029 0.009 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.046 0.03 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.038 0.032 0.029 0.029 0.029 0.029 0.029 0.029 0.029

Electrical Distribution
Energy Conservation in Distribution
Introduction Distribution is a system through which the electrical power received from the grid / own captive power generation is carried to various equipment, where the electrical energy converted to other forms of energy. In an electrical system, the distribution losses vary widely and depend upon various factors such as layout of the distribution system, characteristics of the load being connected, performance of the equipment, etc., The losses in the distribution system vary anywhere between 1.0% to 2.5% of input power. These losses can be minimised by proper selection of energy efficient equipment and suitable capacity at the design stage itself. Some of the criteria, which have to be met by the electrical distribution system, are as follows: ! ! ! ! Stable voltage Uninterrupted power Minimum harmonic distortion Minimal losses
Equipment selection plays an important role in achieving the above mentioned criteria and to achieve energy efficiency right from the beginning of the project. Great care should be taken on energy efficiency for the following major components used in the electrical distribution. ! ! ! ! ! Transformers Electrical cables / bus bars Capacitors Motors Lighting
Energy conservation could be achieved by proper location i.e. layout of electrical equipment, viz. Main Receiving Sub-station (MRSS), transformers, switchgears etc. In addition to operational consideration / flexibility, loss in distribution system could be brought down by bringing the source closer to the load centre. Detailed load flow and analysis of system losses should be studied before locating various equipment.

Case study No. 1
Install Auto Power Distribution Losses

Background
Factor
Controller
and
Reduce
In all industrial electrical distribution systems, the major loads are inductive in nature. Typical inductive loads are A.C. Motors, induction furnaces, transformers and ballasttype lighting. Inductive loads require active power to perform the work and reactive power to create and maintain electro-magnetic fields. Active power is measured in kW (Kilo Watts). Reactive power is measured in kVAr (Kilo Volt-Amperes Reactive). The vector sum of the active power and reactive power make up the total (or apparent) power used (kVA). The ratio of kW to kVA is called the power factor, which is always less than or equal to unity. Theoretically, when electric utilities supply power, if all loads have unity power factor, maximum power can be transferred for the same distribution system capacity. However, as the loads are inductive in nature, with the power factor ranging from 0.2 to 0.9, the electrical distribution network is stressed for capacity at low power factors. The solution to improve the power factor is to add power factor correction capacitors to the plant power distribution system. They act as reactive power generators, and provide the needed reactive power to do kW of work. This reduces the amount of reactive power, and thus total power, generated by the utilities. The benefit of operating the plant at high power is given below: ! Reduced kVA (Maximum demand) charges in electricity board bill ! Reduced transformer & distribution losses within the plant ! Better voltage at motor terminals and improved performance of motors ! A high power factor eliminates penalty charges imposed when operating with a low power factor ! A high power factor gives incentive on energy bill from some of the state electricity boards
Previous Status
In a small scale engineering industry, having a contract demand of 500 kVA with electricity board had a power factor of 0.85.

Automatic power factor correction capacitor bank was installed and the monthly average power factor is maintained at 0.98. There was a drop in transformer and distribution losses. Maximum benefit was achieved due to the elimination of penalty for maintaining low power factor and achieving incentive from state electricity board for very high power factor.
Benefits
The savings achieved was Rs. 1.1 Lakhs. The investment for auto power factor controller was Rs.1.2 Lakhs. The simple payback period was 13 months.

Distribution Proposal-1: Install Auto Power Factor Controller and Reduce Distribution Losses Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.120 -0.120 0.316 72.32% 0.120 0.096 0.110 0.005 0.094 0.024 0.110 0.031 0.063 0.000 0.110 0.039 0.050 0.000 0.110 0.039 0.045 0.000 0.110 0.039 0.040 0.000 0.110 0.039 0.036 0.000 0.110 0.039 0.032 0.000 0.110 0.039 0.028 0.000 0.110 0.039 0.025 0.000 0.110 0.039 0.071 0.023 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.110 0.11 0.12 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.105 0.079 0.071 0.071 0.071 0.071 0.071 0.071 0.071

Case study No. 2
Reduce Cable Loss by Improving Feeder Power Factor

Background
Voltage drop study is conducted to estimate the cable loss. The voltage drop study is conducted with the help of two identical instruments. During the normal load of the feeder, the actual voltage values are measured at sending and receiving end of the cable. Also, the current, kW, feeder power factor and cable size are measured. The acceptable voltage drop is less than 5 Volts. More voltage drop indicates more distribution losses in the feeder. The reason for high voltage drop / loss is due to three major reasons. They are: " Poor feeder power factor, which leads to high cable I2R losses " In-adequate cable size Overloading of the cable and high losses " Poor contact terminals Generally, in industries there are high cable losses due to poor power factor in the feeder. This can be avoided by shifting capacitor banks to the load end.
Previous status
In a small scale foundry, the cable loss was estimated based on the voltage drop study. The actual voltage drop in few of its feeders was more than 10 volts. The acceptable limit is less than 5 Volts. The voltage drop was high due to the poor power factor the feeder (Less than 0.60). The estimated loss was 2.5 kW in each feeder.

The feeder power factor was increased from 0.6 to 0.9 by adding capacitor bank at load end. 25 kVAr capacitor bank was installed in each feeder. The cable loss was reduced more than 50%.
Benefits
The annual savings achieved by reducing cable loss was Rs.0.06 millions. The investment made for the capacitor banks were Rs. 0.04 millions, which paid back in 8 months.

Distribution Proposal-2: Reduce Cable Loss by Improving Feeder Power Factor Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.040 -0.040 0.190 113.16% 0.040 0.032 0.060 0.010 0.045 0.008 0.060 0.019 0.033 0.000 0.060 0.022 0.027 0.000 0.060 0.022 0.024 0.000 0.060 0.022 0.022 0.000 0.060 0.022 0.019 0.000 0.060 0.022 0.017 0.000 0.060 0.022 0.016 0.000 0.060 0.022 0.014 0.000 0.060 0.022 0.012 0.060 0.060 0.060 0.060 0.060 0.060 0.060 0.060 0.060 0.060 0.06 0.04 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.050 0.041 0.038 0.038 0.038 0.038 0.038 0.038 0.038 0.038

Case study No. 3
Install Neutral Compensator for Unbalanced Loads

Background
In an engineering unit, there were significant single phase loads like electrical heaters and lighting loads. Unbalance is inevitable in single phase loads in any 3 phase system. Due to unbalance, neutral current increases and overall losses increase. By installing a neutral compensator, the unbalance in current can be avoided. Neutral compensator is a 3 phase specially wound transformer, which is installed at the low voltage supply line between neutral and phase. Due to magnetic symmetry, it tries to establish neutral point symmetrical with respect to phase voltage, resulting in balanced voltage in all three phases and then reduces the neutral current. There are two fold benefits: " Power saving due to reduction in neutral current " Reduced failure rate of equipment
Previous status
The load current in single phase load feeder was varied from 130 to 170 Amps in phases and the neutral current was about 40 Amps.

Neutral compensator was installed in a single phase load feeder and neutral current was reduced to zero. This has resulted in 5% energy saving on the overall load.
Benefits
The annual energy saving achieved by implementing this project was Rs.7.3 millions. The total investment for neutral compensator was Rs.0.08 millions, which was paid back in 13 months.

Distribution Proposal-3: Install Neutral Compensator for Unbalanced Loads Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.080 -0.080 26.394 5879.74% 0.080 0.064 7.300 2.596 4.200 0.016 7.300 2.613 3.736 0.000 7.300 2.619 3.332 0.000 7.300 2.619 2.975 0.000 7.300 2.619 2.656 0.000 7.300 2.619 2.372 0.000 7.300 2.619 2.118 0.000 7.300 2.619 1.891 0.000 7.300 2.619 1.688 0.000 7.300 2.619 4.681 1.507 7.300 7.300 7.300 7.300 7.300 7.300 7.300 7.300 7.300 7.300 7.3 0.08 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
4.704 4.687 4.681 4.681 4.681 4.681 4.681 4.681 4.681

Case study No. 4
Install Energy Efficient Amorphous Core Transformer

Background
The efficiency of distribution transformers upto 2000 kVA is about 98 to 99%. There are two major losses in transformers (core loss & copper loss). The core loss of a transformer is constant at all operating loads of the transformer, where as the copper loss depends on the operating load. The core of conventional transformer is made up of silicon steel laminations. The latest development is to use amorphous core for the transformer and the core loss reduces by 70% compared to a convention transformer (Cold Rolled Grain Oriented CRGO). The amorphous metal core manufacturing process is similar to glass making process. Alloys with non-crystalline structure are formed as amorphous core. The comparative chart between conventional transformer core (CRGO) and amorphous mental core transformers are given in the following table.
Rating (kVA) 250 500 630 730 1000 No Load Loss (W) Load Loss (W) Efficiency (%)
Amorphous CRGO Amorphous CRGO Amorphous CRGO 180 250 200 365 450 570 900 1000 1250 1500 3200 4800 5200 6050 7650 4000 6550 8000 9000 11800 98.7 99 99.1 99.2 99.2 98.2 98.53 98.54 98.65 98.68
Amorphous metal core transformers are available upto 1000 kVA in India. These transformers are ideally suited at design stage of the plant. The maximum energy saving potential is 70% of core loss. Significant energy saving is achieved over the transformer life cycle of 20 to 25 years.
Previous status
One of the chemical plants had a 500 kVA conventional old transformer for distribution of supply. The energy loss was high compared to the latest amorphous core transformers.

The plant had replaced the old 500 kVA transformer with new energy efficient amorphous core transformer. The no-load power consumption was reduced by 70% due to the reduction in core loss.
Benefits
The annual energy saving achieved by implementing this project was Rs.0.50 millions. The total investment for new amorphous metal core transformer was Rs.0.4 millions, which was paid back in 96 months.

Distribution Proposal-4: Install Energy Efficient Amorphous Core Transformer Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.400 -0.400 1.537 95.90% 0.400 0.320 0.500 0.065 0.389 0.080 0.500 0.151 0.278 0.000 0.500 0.179 0.228 0.000 0.500 0.179 0.204 0.000 0.500 0.179 0.182 0.000 0.500 0.179 0.162 0.000 0.500 0.179 0.145 0.000 0.500 0.179 0.129 0.000 0.500 0.179 0.116 0.000 0.500 0.179 0.321 0.103 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.500 0.5 0.4 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.435 0.349 0.321 0.321 0.321 0.321 0.321 0.321 0.321

Motors
Energy Conservation in Motors
Introduction
Motor converts electrical energy into mechanical energy. Industrial electric motors can be broadly classified as induction motors, direct current motors or synchronous motors. Induction motors are the most commonly used prime mover for various equipments in industrial applications. More than 90% of the motors used in small scale industries are AC squirrel cage induction motors. In induction motors, the induced magnetic field of the stator winding induces a current in the rotor. This induced rotor current produces a second magnetic field, which tries to oppose the stator magnetic field, and this causes the rotor to rotate. The 3-phase squirrel cage motor is the workhorse of industry; it is rugged and reliable, and is by far the most common motor type used in industry. These motors drive pumps, blowers and fans, compressors, conveyers and production lines. Motor Efficiency The energy consumed by the motor over its life cycle is 60 100 times of the initial cost. Therefore the efficiency of the motor is more important during selection and operation. Motor efficiency is defined as the ratio of mechanical power output to electrical power input. The efficiency of the motor depends on the capacity and the percentage loading of the motor. The full load efficiency of the motor varies from 75% to as high as 95% depending on the size, type and loading. In industry the actual loading of the motors vary from 40% to 80%. This is because, the motors are selected to take care of the starting torque requirement and varying process conditions. There various methods to improve the operating efficiency of the motors in industry are described in the following case studies. All these case studies are applicable for all type of industries.

Case study No. 1
Install Auto Star Delta Star Converters in Lightly Loaded Motors

Background
In one of the small scale industries, actual power measurements were carried out for all the motors. There are some motors operating at loads lesser than 40%. Operation of induction motors at under loaded condition lead to lower operating efficiency of motor. The lightly loaded motors offer good scope for energy conservation, by optimisation of voltage. Installation of automatic star delta star converters for the lightly loaded motors offer good scope for energy conservation.
What is Delta to Star?

During the normal running condition, the motor windings are connected in Delta. When the windings are connected in Star, the voltage applied across each phase gets reduced to 58% of its normal value (58% of 415V= 240 V). In case of lightly loaded motors (less than 40% load), voltage related iron losses would be more dominant than the current related copper losses. These motors can be connected in Star to achieve voltage reduction across the windings and hence consequent drop in iron losses. In Star connected motors, there is an improvement in power factor. This results in kVA reduction also. This converter does the function of sensing the load on a continuous basis and operating the motor, either in Delta or star mode. If the loading is below 40%, the motor is automatically put in star mode, thereby achieving energy savings. If the loading exceeds 40%, the motor is automatically put in delta mode, thereby protecting the motor from over-loading and burning the windings.
Previous Status
The loading of some of the drilling & grinding machines and lathes were lesser than 40%. The operating efficiency of these under loaded motors were much lesser than design efficiency.

Automatic star - delta - star converters were installed for the lightly loaded grilling machines, grinding machines and lathes. The actual rating of these motors was from 5.5 kW to 15 kW. The energy savings achieved in these equipment vary from 10 to 15%.
Benefits
Implementation of this proposal resulted in an annual saving of Rs. 0.15 millions. The investment was Rs. 0.2 Lakhs, which paid back in 16 months.

Motors Proposal-1: Install Auto Star Delta Star Converters in Lightly Loaded Motors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 2.000 1.600 1.500 -0.036 -2.000 4.062 60.12% 1.371 0.400 1.500 0.395 0.881 0.000 1.500 0.538 0.685 0.000 1.500 0.538 0.611 0.000 1.500 0.538 0.546 0.000 1.500 0.538 0.487 0.000 1.500 0.538 0.435 0.000 0.000 1.500 1.500 0.538 0.538 0.388 0.347 0.000 1.500 0.538 0.310 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.500 1.5 2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-2.000 1.536 1.105 0.962 0.962 0.962 0.962 0.962 0.962 0.962 0.962

Case study No. 2
Replace Old Motors with Energy Efficient Motors

Background
In a textile industry, 30 numbers of 15 kW conventional ring frame motors were operated continuously. These motors were rewound for more than 5 times. For every rewinding, there is a reduction in efficiency. The reduction varies from 0.5% to 1% per rewinding depending on the type & severity of failure. The plant team replaced all the 15 kW motors with new energy efficient motors. The Energy Efficient Motors (EEM) is designed to have low operating losses. The efficiency of Energy Efficient motors is high when compared to conventional AC induction motors, as they are manufactured with high quality and low loss materials. The efficiency of Energy Efficient motors available in the market range from 80 to 95%, depending on the size. The efficiency of energy efficient motors is high due to the following design improvements: ! More copper conductors in stator and large rotor conductor bars, resulting in lower copper loss ! Using a thinner gauge, low loss core steel and materials with minimum flux density reduces iron losses. ! Friction loss is reduced by using improved lubricating system and high quality bearings. Windage loss is reduced by using energy efficient fans. ! Use of optimum slot geometry and minimum overhang of stator conductors reduces stray load loss. Efficiency of a motor is proportional to the loading of the motor. Conventional Motors operate in a lower efficiency zone when they are loaded less than 60%. At all loading ranges of the motor, efficiency of EEM is higher than conventional motors. Replacing old rewound motors with energy efficient motors result in minimum 10% efficiency improvement.
Previous Status
There were 30 numbers of 15 kW conventional ring frame motors operating at lower efficiency due to several rewinding.

The plant team have replaced all the old/rewound motors with latest energy efficient motor. The comparison of power consumption between old and energy efficient motors are tabulated below:
Motor Conventional old motor Energy Efficient Motor Difference
Rated kW 15 15
No Load power kW 2.32 1.56 0.76
Load power kW 9.92 7.36 2.56
Benefits
The annual energy savings achieved by replacing the old inefficient motors was Rs. 1.26 millions. The investment made was Rs. 0.9 millions, which got paid back in 9 months.

Motors Proposal-2: Replace Old Motors with Energy Efficient Motors Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Maintenance cost (X) Depreciation ( C) Net Income (D)=A-(B+X) Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV Note 1.Maintenance cost included for Fith , Seventh ,and Ninth years 0.200 0.140 -0.022 -0.250 0.313 44.63% 0.144 0.050 0.140 0.032 0.086 0.000 0.140 0.050 0.064 0.000 0.140 0.050 0.057 0.250 0.025 0.000 0.115 0.041 0.042 0.000 0.140 0.050 0.045 0.025 0.000 0.115 0.041 0.033 0.000 0.140 0.050 0.036 0.025 0.000 0.115 0.041 0.027 0.000 0.140 0.050 0.029 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.14 0.25 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.250 0.162 0.108 0.090 0.090 0.074 0.090 0.074 0.090 0.074 0.090

Case study No. 3
Replace Eddy Current Drive with Variable Frequency Drive

Background
Eddy current drives are used for varying the speed in some of the equipment. Eddy current drive is an electro-mechanical device. The speed of the eddy current drive is varied by varying, the field of the electromechanical clutch. The operating efficiency of the eddy current drive is very low compared to variable frequency drive. The loss occurring in eddy current drives increases when the operating speed is lower than 70%. During no load operation of the equipment, eddy current drive consumes some amount of energy continuously. Latest trend is to use variable frequency drive for speed control application. The efficiency of VFDs is about 96-98%. Also, the reliability of VFDs is very high and operating successfully in many plants. During no-load operation of the equipment, the motor is stopped and there is no power consumption. The advantages of VFDs over eddy current drives given below: " Eliminate the no load power consumption " Atleast 25- 30% improvement in efficiency " Good speed Torque characteristic
Previous Status
In a sugar plant, 22 kW cane carrier drive was operating with Eddy current drive system.

The eddy current drive was converted with a variable frequency drive (VFD) fitted induction motor. The actual power consumption of old system was 15.5 kW. After replacing with VFD, there was 25% reduction in power consumption.
Benefits
The annual energy savings achieved by replacing the eddy current drive with variable frequency drive was Rs.0.105 millions. The investment was Rs. 0.15 millions, for VFD and motor, which paid back in 17 months

Motors Proposal-3: Replace Eddy Current Drive with Variable Frequency Drive Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.150 0.120 0.105 -0.005 -0.150 0.277 56.37% 0.099 0.030 0.105 0.027 0.062 0.000 0.105 0.038 0.048 0.000 0.105 0.038 0.043 0.000 0.105 0.038 0.038 0.000 0.105 0.038 0.034 0.000 0.105 0.038 0.030 0.000 0.105 0.038 0.027 0.000 0.105 0.038 0.024 0.000 0.105 0.038 0.022 0.105 0.105 0.105 0.105 0.105 0.105 0.105 0.105 0.105 0.105 0.105 0.15 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.150 0.110 0.078 0.067 0.067 0.067 0.067 0.067 0.067 0.067 0.067

Case study No. 4
Replace Motor-Generator (MG) Based Welding Set with Thyrister Based Welding Set
Background
In a small scale auto component manufacturing industry, Motor Generator (MG set) based welding machine was used for welding application. MG set consists of AC motor driving a direct-coupled DC generator. The overall efficiency of MG set is low because of two rotating equipment. Also, the no-load power consumption of MG set is continuous even when the welding machine is in off condition. During the loading cycle, there will be I2R loss in both AC motor and DC generator. The overall efficiency of MG set is only around 80 - 85%. Thyristor based welding sets are available for welding application. The operating efficiency of these sets is very high (96 to 98%). The reliability of such machines is also high and working successfully in many applications. The no-load power consumption of welding sets is negligible. There is a good potential to replace the M-G set based welding machine with thyristor based welding machine.
Previous status
Motor Generator set was used in a old welding machine. The rating of the machine was 43.5 kVA, 500 Amps. The no-load power consumption of the MG set was 1.8 2.0 kW. The power consumption during operation was about 14 kW.

The old 43.5 kVA MG set based welding machine was replaced with thyristor based welding machine. The reduction in power consumption was 2 kW during no-load operation and 3.2 kW during welding.
Benefits
The annual savings potential is Rs.0.043 millions. The investment required is Rs.0.15 millions, which will be paid back in 42 months.


Motors Proposal-4: Replace Motor-Generator (Mg) Based Welding Set with Thyrister Based Welding Set Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.150 0.120 0.043 -0.028 -0.150 0.053 22.18% 0.063 0.030 0.043 0.005 0.031 0.000 0.043 0.015 0.020 0.000 0.043 0.015 0.018 0.000 0.043 0.015 0.016 0.000 0.043 0.015 0.014 0.000 0.043 0.015 0.012 0.000 0.043 0.015 0.011 0.000 0.043 0.015 0.010 0.000 0.043 0.015 0.009 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.043 0.15 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.150 0.071 0.038 0.028 0.028 0.028 0.028 0.028 0.028 0.028 0.028

Lighting
Energy Conservation in Lighting
Introduction
Lighting is the most commonly used and essential equipment in all the industries. The power consumption by the industrial lighting varies between 2 to 10% of the total power depending on the type of industry. Innovation and continuous improvement in the field of lighting, has given rise to tremendous energy saving opportunities in the area. Lighting is an area, which provides a major scope to achieve energy efficiency at the design stage, by incorporation of modern energy efficient lamps, luminaries and gears. Basic components of a lighting system Most of the lighting equipment, comprise of the following three basic components: ! Lamp ! Luminaries ! Gears Energy efficiency in lighting at design stage recommendations To achieve the optimum energy efficiency, one has to focus on the following three critical aspects of lighting technology at the design stage: 1. Light generation Light sources must be made more efficacious. That is, they must produce more light for the same amount of electrically consumed, without sacrificing quality. 2. Light distribution Optimum matching of a lam and its luminaire, results in achieving energy efficiency in light distribution 3. Lighting control The correct selected of energy efficient lamp and luminaire, results in achieving energy efficiency, only if the system has an effective lighting control system. Since, the effective lighting control system makes the light adaptable to different lighting needs. The lighting control system could be the use of dimmers, presence detectors and electronic controllers. In other words, there is a need to have a highly flexible and adaptable lighting installation which will permit change of lighting levels to suit varying conditions.

Case study No. 1
Install Lighting Transformer for Main Lighting Feeder

Background
Discharge type lamps are used for illumination in all industries. The optimum voltage required for any discharge type of lamps is around 210 Volts. The lighting load is a single phase load connected to a three phase system. Normal single phase voltage is 240 Volts in industries. The reduction in supply voltage by 12% results in: ! Proportional drop in power consumption (12%) ! Insignificant drop in illumination level ! Increased life of lamp & ballast The reduction in illumination is however negligible. Dedicated lighting voltage stabilizers or lighting energy savers are successfully installed to achieve a minimum of 10 to 12% power savings in several industries. Due to stable voltage from the lighting voltage stailizers, the life of lamps and other control equipment like ballast increases drastically. This is the added benefit of installing lighting voltage stabilizers.
Previous Status
In a small scale garment industry, lighting power consumption was more than 25% of the total power consumption. The lighting feeder voltage was around 240 Volts, which lead to higher energy consumption.

Lighting voltage stabilizer was installed for lighting feeder and voltage was optimised to 210 Volts. The actual savings achieved was about 12%. The lighting power consumption was about 54 kW.
Benefits
The annual saving achieved by implementing this proposal was Rs. 0.14 millions. The investment made for lighting voltage stabilizer was Rs 0.25 millions, which paid back in 22 months

Lighting Proposal-1: Install Lighting Transformer for Main Lighting Feeder Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.250 0.200 0.140 -0.022 -0.250 0.336 45.60% 0.144 0.050 0.140 0.032 0.086 0.000 0.000 0.140 0.140 0.050 0.050 0.064 0.057 0.000 0.140 0.050 0.051 0.000 0.000 0.000 0.000 0.000 0.140 0.140 0.140 0.140 0.140 0.050 0.050 0.050 0.050 0.050 0.045 0.041 0.036 0.032 0.029 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.140 0.14 0.25 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
-0.250 0.162 0.108 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090

Case study No 2
Replace 40 Watts Fluorescent Tube Lights with 36W Colour-80 Series Lamps
Background
Conventional fluorescent tube lights are used in majority of industries. The actual efficacy of these lamps is 69 lumens / Watt. The life of these lamps is about 8000 hrs. Nowadays, Colour-80 series fluorescent lamps are available with very high efficacy. There is a good potential to save energy, by replacing 40-Watts fluorescent lamps with 36 watts colour-80 series lamps. Colour-80 series lamps have 40% more light output and better colour property than conventional tube lights. The actual power is reduced by 4 watts/lamp and due high light output the number of lamps also reduced. The colour -80 series lamps are best suitable for inspection, machining areas, paint shops etc. The comparison between conventional and colour-80 series lamps are given below: Lamps Conventional Tube light Colour-80 series lamp Previous status In a small scale textile plant, there were about 500 tube lights used for illumination purpose. All these lamps were of conventional 40 Watts tube lights. Watts 40 36 Efficacy 69 lumens/Watt 90 lumens/Watt Life 8000 hrs 12,000 hrs

All the 500 conventional tube lights were replaced with energy efficient colour 80 series lamps. The actual number of lamps was reduced from 500 to 400 numbers with further energy saving of 4 Watts/lamp.
Benefits
The total annual energy saving potential was Rs 0.155 millions. The investment for colour-80 series lamps was Rs 0.08 millions, which was paid back in 7 months.

Lighting Proposal-2: Replace 40 Watts Fluorescent Tube Lights with 36W Colour-80 Series Lamps Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 6 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.080 -0.080 0.354 142.22% 0.080 0.064 0.155 0.033 0.122 0.109 0.016 0.155 0.050 0.105 0.084 0.000 0.155 0.056 0.099 0.071 0.000 0.155 0.056 0.099 0.063 0.000 0.155 0.056 0.099 0.056 0.000 0.155 0.056 0.099 0.050 0.155 0.155 0.155 0.155 0.155 0.155 0.155 0.08 0 1 2 3 4 5 6 Discount Rate (i) 12%

Case study No. 3
Replace Copper Ballast in Fluorescent Lamps with Electronic Ballast

Background
In discharge type lamps ballast is required for initial starting of the lamp. In majority industries, conventional copper ballasts are used in all fluorescent tube lights. Conventional copper ballasts have certain inherent losses like core loss and copper loss. The latest development is to use energy efficient electronic ballast. Electronic ballast is designed with high frequency (20kHz 22 kHz) and the loss in it is very low compared to conventional ballast. Also, it has other advantages compared to copper ballast.
Advantages of Electronic Ballast

! ! ! ! ! No need for starter Power factor nearly unity No humming sound Energy loss 1 - 2 watts Instant start up without flickering
The comparison of power consumption for conventional ballast and the energy efficient electronic ballast is given below: Ballast Conventional ballast Electronic ballast Power Consumption 14 - 15 W / Tube 2 W / Tube
Previous status
There were about 250 tube lights glowing continuously for 24 hours in a machine shop. All these lamps were fitted with copper ballast. The power consumption was around 14 watts/lamp.

All the copper ballast were replaced with energy efficient electronic ballast. The energy saving achieved was about 12 Watts/lamp.
Benefits
The annual savings achieved was Rs.0.09 millions. The investment for replacing copper ballast with electronic ballast was Rs 0.09 millions, which will be paid back in 12 months.

Lighting Proposal-3: Replace Copper Ballast in Fluorescent Lam ps w ith Electronic Ballast Savings/Year (Rs M illion) Investm ent (Rs M illion) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Incom e (D)=A-B Tax @ 35.875 % on Incom e(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+ i)^ n NPV (Rs. M illion) IRR Basis of Calculation 1. Investm ent being for energy efficiency equipm ent, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 6 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investm ent (i) is considered as 12% for calculating NPV -0.090 -0.090 0.175 76.15% 0.090 0.072 0.090 0.006 0.084 0.075 0.018 0.090 0.026 0.064 0.051 0.000 0.090 0.032 0.058 0.041 0.000 0.090 0.032 0.058 0.037 0.000 0.090 0.032 0.058 0.033 0.000 0.090 0.032 0.058 0.029 0.090 0.090 0.090 0.090 0.090 0.090 0.09 0.09 0 1 2 3 4 5 6 Discount R ate (i) 12%

Case study No. 4
Replace Mercury Vapour Lamps with Metal Halide Lamps in Case Press Shop
Previous Status
In a watch manufacturing unit, lighting survey was carried out throughout the plant area. The plant team has installed energy efficient lamps in many places. They wanted to extend energy efficiency in lighting system in other areas of the plant also. In some of the areas like case press shop, high pressure mercury vapour (HPMV) Lamps were installed. The efficacy and colour property of HPMV lamps are lower than the latest metal halide lamps.

Metal Halide lamps are more efficient than HPMV lamps. Colour property of metal halide lamp is better compared to HPMV lamp. The comparison of light output is as follows: HPMV Metal halide lamps 58 lumens/ Watt 80 - 90 lumens/Watt
The plant team replaced the 125 watts HPMV lamps with 70 Watts metal halide lamps in Case Press shop. The implementation was carried out in a phased manner.
Benefits
The annual energy savings achieved by replacing HPMV lamps with metal halide lamps was Rs.0.37 millions. This required an investment of Rs. 0.75 millions and paid back in 24 months.


Lighting Proposal-4: Replace Mercury Vapour Lamps with Metal Halide Lamps in Case Press Shop Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 6 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.075 -0.075 0.046 35.38% 0.075 0.060 0.037 -0.008 0.045 0.040 0.015 0.037 0.008 0.029 0.023 0.000 0.037 0.013 0.024 0.017 0.000 0.037 0.013 0.024 0.015 0.000 0.037 0.013 0.024 0.013 0.000 0.037 0.013 0.024 0.012 0.037 0.037 0.037 0.037 0.037 0.037 0.037 0.075 0 1 2 3 4 5 6 Discount Rate (i) 12%

Case study No. 5
Replace Incandescent Lamps (GLS) with Energy Efficient Compact Fluorescent Lamps (CFL) for Task Lighting in Machines
Background
Incandescent lamps are one of the older generation lamps. Their energy consumption is higher and the efficacy levels are very poor. One of the direct replacement of incandescent lamps are the Compact Fluorescent Lamps (CFL). The efficacy (Lumens /Watt) of CFL & GLS of lamps are given below: " Incandescent lamp (GLS) " CFL : : 14 lumens/watt 60 lumens/watt
Previous Status
There were around 200 incandescent lamps of 60 Watts in operation as task lighting in machines. Compact fluorescent lamps are best suited for task lighting application.

There is a very good potential to replace 60 Watts GLS lamps with 20 Watts CFL lamps or Halogen lamps and save energy about 40 W per lamp. The plant team replaced all the incandescent lamps with 20 Watts CFL lamps for task lighting in machines. This was taken up as a failure replacement policy.
Benefits
The annual energy saving achieved by replacing the incandescent lamps with CFL was Rs.0.182 millions. The investment required was Rs.0.07 millions, which paid back in 5 Months.


Lighting Proposal-5: Replace Incandescent Lamps (GLS) with Energy Efficient Compact Fluorescent Lamps (CFL) for Task Lighting in Machines Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 6 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV 0.070 0.056 0.182 0.045 -0.070 0.432 186.75% 0.122 0.014 0.182 0.060 0.097 0.000 0.182 0.065 0.083 0.000 0.182 0.065 0.074 0.000 0.182 0.065 0.066 0.000 0.182 0.065 0.059 0.182 0.182 0.182 0.182 0.182 0.182 0.182 0.07 0 1 2 3 4 5 6 Discount Rate (i) 12%
-0.070 0.137 0.122 0.117 0.117 0.117 0.117

Renewable Energy
Energy Conservation in Renewable Energy
Case study No. 1
Application of Solar Energy for Generating Preheated Boiler Feed Water

Introduction
A fertilizer industry has installed Solar Water Heating (SWH) systems to generate hot water for preheating boiler feed water. In order to reduce the fuel consumption in the boiler, it was decided to install solar water heating system. The system works in a closed loop. The water from softening plant is supplied to storage tanks. The bottom of the tank is connected to a circulating pump that circulates water through solar collectors. The outlet hot water from SWH is collected in storage tank and pumped to the users. The installed capacity of SWH system is 1,20,000 litres / day. It is one of the largest systems installed for industrial process application in India. The system has 1305 solar collectors of 2m2 absorber area each. There are four storage tanks of 60,000 lit capacity each, to store the hot water. In this system, water is circulated through collectors throughout the day as long as the collector output is at higher temp than that of water in the storage tanks. Operational features The overall efficiency of the system is about 50%. It has been operating successfully with low operation and maintenance since installation. However, regular maintenance like cleaning, change of collector absorber and toughened glass are required to achieve the desired output. Benefits To generate steam for process requirements, LSHS has been used in the boiler. In the increasing trend on the cost of LSHS, a Solar Water Heating system was installed with the total investment of Rs 1.55 Crores. The investment in renewable energy facilitated income tax saving for 100% depreciation of about Rs 55.0 lakhs. During the year 1998, the company was eligible for investment allowance. This has facilitated income tax of 100% on investment for this project
Solar Water Heater system

Implementation of the project resulted in a saving of 134 MT of LSHS. The investment required was Rs.15.5 millions and paid back in about 36 months. The depreciation benefit of Rs. 5.5 millions has been taken into account while calculating the economic benefits. Besides economic benefits, environmental benefits have also been derived out of this project. It has resulted in reducing sulphur-dioxide (SO2) emission to the tune of 217 kgs per annum. Environmental benefits ! Reduction in 134 tons of LSHS per year ! Reduction in 217 kgs of SO2 per year Cost benefit analysis Annual Savings Rs. 5.5 millions Investment Rs. 15.5 millions Simple payback 36 months
Renewable Energy Proposal-1: Application of Solar Energy for Generating Preheated Boiler Feed Water Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -15.500 -15.500 9.286 28.51% 15.500 12.400 5.500 -2.475 7.975 7.121 3.100 0.000 5.500 5.500 0.861 1.973 3.698 2.510 0.000 5.500 1.973 2.241 0.000 5.500 1.973 2.001 0.000 5.500 1.973 1.787 0.000 0.000 5.500 5.500 1.973 1.973 1.595 1.424 0.000 5.500 1.973 1.272 0.000 5.500 1.973 1.136 5.500 5.500 5.500 5.500 5.500 5.500 5.500 5.500 5.500 5.500 5.5 15.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
4.639 3.527 3.527 3.527 3.527 3.527 3.527 3.527 3.527
Case study 2
Biomass Gasifier System for Power Generation

Introduction
A chemical industry, which manufactures potassium chlorate (KClO3) using electrolysis process, has installed biomass gasifier system for power generation. The installed capacity of the biomass gasifier is 200 kWe. The system was installed in the year 2002 and has since been operating successfully. In potassium chlorate manufacturing, power cost contributes significantly to the unit production cost, apart from raw materials. Due to ever increasing electricity charges, the cost of production has increased to higher level which resulted in closure of the unit. Subsequently, various options had been considered to revive the situation, it was decided to opt for captive power generation using biomass gasifier system. After installing the gasifier system, the cost of power has significantly reduced and resulted in appreciable monetary savings.
System Description
The gasifier, which uses firewood as fuel, is connected with a gas engine that operates on 100% producer gas. The engine is actually meant for natural gas firing, however with a few modifications this could be used for power generation using producer gas. Dried firewood is fed into the hopper of the gasifier through bucket elevators. In order to avoid clogging of firewood, a vibrator is placed alongside of the hopper, which ensures smooth flow of firewood. The produces gas generated through partial combustion under controlled supply of air is fed through various stages of filters and cleaning system. Tar, particulate matter and other impurities are filtered with water scrubbers and micro filters. In order to bring down the gas temperature the cleaned gas is passed through a two stage cooling system with water circulation. The temperature of gas is brought down from 500oC to about 45oC, so as to feed into the engine.
Performance of the system

Though the capacity of gasifier system is 200 kW, the gasifier system has been operated to give 170 kW output to meet their electrical requirements. The average consumption of fire wood is about 1.75 kgs per unit of power generation. On an average, the estimated power generation is about 3800 units per day at the rate of 22 hours of operation. About 12 % of electricity generated is consumed by axillaries which accounts for about 450 units per day. The generation cost per unit of power is Rs 3.0/ unit of which Rs. 1.75 for firewood, Rs. 0.65 for operation & maintenance and Rs. 0.60 towards capital investment.
Benefits:
The adoption of biomass gasifier system for power generation has given significant tangible and intangible benefits. The total investment was about Rs 60.0 Lakhs out of which Rs 30.0 Lakhs have been availed through MNES subsidy. The cost of power generation works out to be Rs. 3.0 per unit as against the present electricity charges of Rs 4.50 per unit for HT industries. It gives a direct savings of Rs 1.50 / kWh. The annual savings would be about Rs 1.7 millions for 300 days of system operation. The total investment was paid back within 24 months after considering the subsidy component.

Renewable Energy Proposal-2: Biomass Gasifier System for Power Generation Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -3.000 -3.000 4.100 46.13% 3.000 2.400 1.700 -0.251 1.742 0.600 1.700 0.395 1.041 0.000 1.700 0.610 0.776 0.000 1.700 0.610 0.693 0.000 1.700 0.610 0.619 0.000 1.700 0.610 0.552 0.000 1.700 0.610 0.493 0.000 1.700 0.610 0.440 0.000 1.700 0.610 0.393 0.000 1.700 0.610 0.351 1.700 1.700 1.700 1.700 1.700 1.700 1.700 1.700 1.700 1.700 1.7 3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
Annual Savings Rs. 1.7 millions Investment Rs. 3.0 millions (after subsidy) Simple payback 24 months
1.951 1.305 1.090 1.090 1.090
1.090 1.090 1.090 1.090 1.090
Case study No 3
Solar PV Water Applications

Introduction
Pumping
for
Industrial
Process
A tobacco processing plant has installed solar water pumping system to cater to their process requirements. The system is capable of pumping about 20,000 KL of water per year from the bore wells. All bore wells are located at about 4.0 km distance from the plant, where there is no grid available. Water pumped from the 3 bore wells is stored in the storage tank with 40 KL capacity.
System Description
There are two solar PV systems of 3.8 kWe each and one 3.6 kWe installed for water pumping. The total installed capacity of solar water pumping system is 11.5 kW. In this system, solar panels are connected to a flow optimizer, DC AC inverter and two submersible pumps of 1.8 kW capacities each. The pumps are located at a depth of 80m below ground level. The on / off operation of the pumps is automatically controlled through the flow optimizer panel using a Front side view of solar PV system float switch fixed in the tank. When the output electricity is low due to diminished solar radiation, it switches off one pump so as to ensure maximum water output from the other pump. The specifications of system are given below: ! ! ! ! ! ! ! No of arrays No of pumps Wattage of each module No of modules in 3.6 kW system Voltage output Capacity of pump No of modules in 3.8 kW systems :3 : 6 (2 in each system) : 75 W : 48 : 120 V : 1.8 kW each : 56 in each system

Side view of solar arrays
Water pumped to the plant is used for various process applications such as Steam generation, domestic applications and chilling plants. The system requires minimal maintenance of cleaning once in a week of the solar panels and checking of pump output for smooth running of the system.
Benefits
The total investment for this project is Rs 55.0 Lakhs. This project has resulted in substantial power savings for the company which is otherwise would have been used for water pumping.
Case study No. 4
Solar Water Heating System for Pre-heating Boiler Feed Water

Introduction In a leather processing industry, coal has been used to generate steam for its process requirements. With the increase in coal cost and availability of solar energy in abundance, it was decided to install Solar Water Heating system to preheat boiler feed water. The installed capacity of the system is 50,000 LPD and was commissioned during 1991 92. The capacity of boiler is 5T/hr at working pressure of 7 to 8 kg. The steam is utilised for indirect drying of leather. Coal consumption in the boiler varies from 12 to 15 tons per day depends upon the quality and type of coal.
The estimated energy generation from solar water heating system is 30,00,000 kcal / day.
System Description
There are 711 solar collectors installed in four rows, which are connected in series. They are connected to 2 storage tanks of 50,000 litres capacity each. One of the storage tanks is kept as stand-by and used during maintenance. Water from DM plant is circulated through solar water heaters by circulation pumps and fed to the boiler. The system has been generating hot water at 80oC almost through out the year. Further, during summer the temperature is set low in order to get maximum quantity of water. The following operation and maintenance practices are being adopted to keep up the thermal performance of the system. " Periodical cleaning of solar collectors " Inlet water to solar water heater should be treated to a level of 5 8 ppm dissolved solids " Periodic checking of flow through drain pipes in each row " End point flanges are being replaced at regular intervals
Benefits
The hot water generated by solar water heating system has replaced about 1.5 tons of coal per day. The cost of coal is about Rs 2200 per ton. This system is an operating about 180 days in a year. Total investment of this system was Rs 50.0 lakhs of which Rs 30.0 Lakhs was the net investment after availing MNES subsidy. The annual savings achieved by conserving coal is estimated as Rs 0.6 millions per annum. With the savings achieved, the investment was paid back in less than 5 years.
Besides economic benefits, the system has also resulted in substantial reduction in CO2 and SO2 emissions.

Annual Savings Rs. 0.6 millions Investment Rs. 3.0 millions (after subsidy) Simple payback 60 months
Renewable Energy Proposal-4: Solar Water Heating System for Pre-heating Boiler Feed Water Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -3.000 -3.000 0.114 13.20% 3.000 2.400 0.600 -0.646 1.112 0.600 0.600 0.000 0.478 0.000 0.600 0.215 0.274 0.000 0.600 0.215 0.245 0.000 0.600 0.215 0.218 0.000 0.600 0.215 0.195 0.000 0.600 0.215 0.174 0.000 0.600 0.215 0.155 0.000 0.600 0.215 0.139 0.000 0.600 0.215 0.124 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.600 0.6 3 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
1.246 0.600 0.385 0.385 0.385
0.385 0.385 0.385 0.385 0.385

Case study No. 5
Biogas Generation from Canteen Wastes for Cooking Applications

Introduction
The organic wastes generated in industrial complex could be utilized to generate biogas through methanation and used for cooking applications. It avoids the problem of waste disposal apart from providing useful energy. The cooking applications which normally use conventional fuel like Furnace oil, Diesel and LPG would be conserved substantially. In this plant they have been consuming about 20 LPG cylinders in a month for their cooking applications in canteen. The cost incurred for LPG consumption had been substantial. Against this backdrop, an industry manufacturing reinforced fiber has installed Biogas plant using wastes generated from the canteen. The biogas plant was commissioned in year 1997 and took about 2 months period to complete the installation. On an average, it has been generating about 200 250 kg/day of solid wastes.
Top view of Biogas digester
Project Description
A biogas plant of 25 m3/day capacity has been installed to cater to the thermal energy requirements of the canteen. It is floating dome type digester connected with two burners of 2 m3 and 3 m3 capacities each. At the initial stage, cow dung was charged to create micro organisms especially bacteria in order to catalyze microbial action in the digester. After stabilization, wastes generated from the canteen that are rich in organic content have been charged. Normally the feedstock charged at 1:1 ratio with water is stirred and homogenous mixture has been prepared and fed into the digester. It helps the methanation process to take place at faster rate. In order to maintain the required output cow dung has been charged at regular interval as an inoculum. The gas production depends on several parameters such as organic content of the feedstock, retention time, pH maintained in the digester, Total dissolved solids in the slurry etc,.It is important to note that no fibrous material like coriander stem, onion skin etc should be fed into the digester. This would ultimately result in lesser gas production. In this plant, they have faced a problem of reduced gas production after one year of operation. It was due to the absence of sufficient micro organisms to digest the organic content and hence the lesser gas production. Subsequently, complete cleaning had been done and recharged with cow dung to initiate the process.
Benefits
The installation of biogas plant has reduced the consumption of LPG which has been used for cooking applications. The cost of LPG used was Rs 450 per cylinder. Use of LPG has resulted in a saving of about 20 cylinders of LPG and cost to the tune of Rs 0.1 million per year. The company has availed 50% subsidy and hence the total cost of the project was about Rs 0.2 millions after subsidy. With the savings incurred the investment has been realized in 24 months period. The operating and maintenance cost of this project has been considerably low. Besides providing a quality fuel, this project has resulted in many other benefits. The environmental implications of disposing the waste generated before installing the biogas plant have been sorted out completely. Another intangible benefit of this system is the generation of rich organic manure which is being utilized for in-house farming. However, due to low pressure and calorific value of biogas this could only be used mainly for water boiling, frying etc.

Annual Savings Rs. 0.1 million Investment Rs. 0.2 million Simple payback 24 months
Renewable Energy Proposal-5: Biogas Generation from Canteen Wastes for Cooking Applications Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -0.200 -0.200 0.225 40.81% 0.200 0.160 0.100 -0.022 0.109 0.040 0.100 0.022 0.063 0.000 0.100 0.036 0.046 0.000 0.100 0.036 0.041 0.000 0.100 0.036 0.036 0.000 0.100 0.036 0.032 0.000 0.100 0.036 0.029 0.000 0.100 0.036 0.026 0.000 0.100 0.036 0.023 0.000 0.100 0.036 0.021 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.1 0.2 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
0.122 0.078 0.064 0.064 0.064
0.064 0.064 0.064 0.064 0.064

Case study No.6
Biomass Gasifier for Industrial Thermal Applications

Introduction A biomass gasifier system has been installed in a Heat treatment facility for thermal applications. Originally the plant was using furnace oil to meet their thermal energy requirement for Normalizing, Tempering and Annealing etc. The average consumption of furnace oil is about 200 T/month. Due to increase in furnace oil price, it was proposed to install biomass gasifier system using coconut shell as fuel. During operation, a few problems had been experienced with coconut shell firing such as high tar formation, fuel choking etc. Then it was decided to switch over to firewood in place of coconut shell. The installed capacity of gasifier system is 10,00,000 kcal/hr, which consumes 300 kgs of biomass per hour.
Gasifier
Dust collector
Diesel scrubber
Cyclone separator
Water Sprayer
Gas outlet
Schematic diagram of thermal gasifier system
Project description
The producer gas generated from gasifier is fed through various stages of cleaning as it contains carbon dust, tar etc. The gas which comes out of gasifier is at temperature of about 400oC. It passes through dust collector to remove dust particles which would help improving the quality of gas. In order to further improve the gas quality by removing other impurities and particulates, producer gas is fed through cyclone separator, water spray arrangement and diesel scrubber. This would avoid clogging of burners and hence improve the combustion efficiency. There are a few problem faced during operation of this system, since installation that are, ! Scrubber contamination ! Cooling Tower contamination due to carbon accumulation
Also, the gasifier system has to be unloaded once in 700 hrs of operation (once a week) for regular maintenance in order to remove tar which is formed along the walls of gasifier. However, the burner requires less maintenance.
Benefits
Use of biomass gasifier system has resulted in tremendous savings on furnace oil to the tune of 60T/month which accounts for 30% savings on furnace oil consumption. The cost of furnace oil and firewood are Rs 15 / liter and Rs 1600 / T respectively @ 35% moisture. The total savings achieved is about 100 Lakhs per annum due to reduction in furnace oil consumption. The cost of firewood used for gasification is about Rs 40.0 Lakhs. Hence the net savings achieved is about Rs 6.0 millions per year. This system required an investment of Rs 4.5 millions which includes for biomass gasifiers, burner, cleaning systems and other accessories. Apart from cost benefits, this project has resulted in reduction of CO2 equivalent to 17 Tons per month.

Renewable Energy Proposal-6: Biomass Gasifier for Industrial Thermal Applications Savings/Year (Rs Million) Investment (Rs Million) Year (n) Inflow Energy saving (A) Out flow Initial Cost (B) Depreciation ( C) Net Income (D)=A-B Tax @ 35.875 % on Income(D) - depreciation ( C ) Cash Inflow after Tax (F) Present Value = F/(1+i)^n NPV (Rs. Million) IRR Basis of Calculation 1. Investment being for energy efficiency equipment, Depreciation of 80% in first year and 20% in second year is allowable as per GoI 2. NPV & IRR are calculated for 10 years 3. Corporate tax is considered @ 35% with 2.5% surcharge (as existing in India presently) 4. Corporate tax is calculated taking into account 80 % depreciation in I year and 20 % depreciation in II year 5. Interest on investment (i) is considered as 12% for calculating NPV -4.500 -4.500 18.650 101.69% 4.500 3.600 6.000 0.861 4.588 0.900 6.000 1.830 3.325 0.000 6.000 2.153 2.739 0.000 6.000 2.153 2.445 0.000 6.000 2.153 2.183 0.000 6.000 2.153 1.949 0.000 6.000 2.153 1.740 0.000 6.000 2.153 1.554 0.000 6.000 2.153 1.387 0.000 6.000 2.153 1.239 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6.000 6 4.5 0 1 2 3 4 5 6 7 8 9 10 Discount Rate (i) 12%
5.139 4.170 3.848 3.848 3.848
3.848 3.848 3.848 3.848 3.848

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Allen-Bradley India Ltd. C-11, Ind Area, Site-4, Sahibabad -201 010, Dist. Ghaziabad, Uttar Tel: 11 8771112 Fax: 11 8770822 WWW: www.ab.com/
Cegelec India Ltd. A - 21/24, Sector 16 Noida 201 301 Tel: 011 - 852 5643 Fax: 011 - 852 0405
Mr. Sudhir Naik Vice President - Corporate Mktg. Hi-Rel Electronics Limited B -117 & 118, GIDC, Electronics Zone, Sector-25 Gandhi Nagar 382044 Tel: 02712-21636, 22531 Fax: 02712-24698 Email: mktg.hrcl@hirel.sprintrpg.ems.vsnl.net.in Mr N C Agrawal Managing Director MEDITRON SIRTDO Industrial Estate P O BIT, Mesra Ranchi 835 215 Tel: +91-651-535875 Email: meditron@dte.vsnl.net.in, jyoti@dte.vsnl.net.in Adsorption Dryers. Mr. Rajnish Joshi Exe. Vice President Delair India Pvt. Ltd. 20, Rajpur Road, New Delhi 110054 Tel: 011-2912800 Fax: 011-2915127, 2521754 Email: bryair@nda.vsnl.net.in AFBC Boilers, Mr K Kuppuraju President-Technical CetharVessels Pvt ltd 4,Dindigul road, tiruchirappilly Tel: 0431-482452/53 Fax: 0431-481079 Email: try_cvltry@sanchar.com Air & gas compressors, Mr Andre Schmitz Managing Director Atlas Copco (India) Ltd Mahatma Gandhi Memorial Building Netaji Subhas Road Mumbai 400 002 Tel: +91-22-5596416 / 17 Fax: +91-22-5597928 Email: r.suresh@atlascopco.com Air compressors Mr M Raveendran Director Coimbatore Compressor Engineering Co Pvt Ltd S F No 429, Thanneerpandal Peelamedu Coimbatore 641 004 Tel: +91-422-2570323 Fax: +91-422-2571447 Email: compressor@eth.net
Danfoss Industries Pvt. Ltd. 296, Old Mahabalipuram Road Sholinganallur, Chennai 600 119 Tel: 044 2550 1555 Fax: 044 2550 1444 Email: danfoss.india@danfoss.com Emco Lenze Pvt. Ltd (Registered and Sales Office) 1st Floor, Sita Mauli, Above Bank of Maharashtra, Madanlal Dhingra Road, Panchpakhadi, Thane (West) Mumbai- 400 602. Tel :-+91 - 22 - 2540 5488 / 2540 5490 / 2545 2244 Fax :-+91 - 22 - 2545 2233 Email :- mktg@emcolenze.com Energytek Electronics Pvt. Ltd. A - 31, GIDC Electronics Zone Gandhinagar 382 044 Tel: 02712 - 25562 Fax: 02712 30544 Messung Systems Pvt Ltd S - 615, 6th Floor, Manipal Centre Dickinson Road Bangalore 560042 080 5320480 Email: bco@messung.com Ador Powertron Industries Ltd. Plot 51, Ramnagar Complex D - 11 Block, MIDC, Chinchwad Pune 411 019 Tel: 020 - 5572 532, 5573 778 Fax: 020 - 5575 817 Mr K N Balaji Chief Operating Officer Eurotherm Del India Ltd 152, Developed Plots Estate Perungudi Chennai - 600 096 Tel: 044-24961129 Fax: 044-24961831 Email: sales@eurothermdel.com

Dr Jairam Varadaraj Managing Director ELGI EQUIPMENT LTD Elgi Industrial Complex Trichy Road Singanallur P O Coimbatore 641 005 Tel: +91-422-2589555 Fax: +91-422-2573697 Email: investor@elgi.jet.co.in Mr Amol Parkhe Product manager Kirlosker Copeland (EE) 1202/1,Ghole Road Near Ramchandra Sabhagurha Pune-411004 Tel: 020-5536350 Fax: 020-5534988 Email: amolp@kircop.com Air conditioning systems Ms Sajitha M Nair Marketing executive Presvi Controls Pvt ltd no 8, 2nd street,Venkatram nagar extn Adayar Chennai 600 020 Tel: 91-044-24420977/ 93 Fax: 91-044-24410289 Mr J P Singh Managing Director YOKOGAWA BLUE STAR LTD 40/4, Lavelle Road Bangalore 560 001 Tel: +91-80-2271513 Fax: +91-80-2274270 Email: ybilr@giasbg01.vsnl.net.in Mr. B G Raghupathy Vice Chairman GEA Cooling Tower Technologies (India) PvtLtd 443, Anna Salai, Teynampet Chennai-600018 Tel: 044-24326171 Fax: 044-24360576 Email: gct@vsnl.in Mr Anil K Srivastava Managing Director CARRIER AIRCON LTD Chiller Business Unit 114, Shahpur Jat Near Asian Games Village New Delhi 110 049 Tel: +91-11-6497131 to 34 Fax: +91-11-6497140 K N A Chandrasekar Regional Manager Amtrex Hitachi Appliances Ltd Tulsi Apartments 47,II Main Road, R A Puram Chennai 600 028 Tel: 044 - 24937483 Fax: 044- 24935534 Email : kna.chandrasekar@amtrexhitachi.com Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Mr T Nakamoto Managing Director Daikin-Shriram Air Conditioning Pvt Ltd 12th floor, Surya Kiran Building 19KG Marg New Delhi 110 001 Tel: 011-375-2647 Fax: 011-375-2646
Matsushita Air-conditioning India Pvt Ltd Nungambakkam high raod Nungambakkam Chennai 600 034 Tel: (91)-(44)-28274705
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Khatau House, Plot No. 410-411, Mogul Lane, Mahim, Mumbai 400016 Tel: 022-4461975, 4450050 Fax: 022-4450016 Centrifugal & axial fans Mr J B Kamdar Chief Executive NADI AIRTECHNICS 26, G N T Road Erukkenchery Chennai 600 118 Tel: +91-44-5570264 / 771 Fax: +91-44-5371149 Email: ebmnadi@md2.vsnl.net.in Mr A P Gokhale Director Autowin systems povt ltd Plot no 2, Vedant Nagari Karve nagar Pune-411052 Tel: 020-5431052, 5423358 Fax: 020-5467041 Email: autowin@vsnl.com Centrifugal Pumps Mr BSS Rao/rajiv Sr General manager Beacon Weir ltd no 28, Industrial estate Ambattur chennai-600098 Tel: 044-26250739 Email: bwlmarketing@vsnl.net Mr P U K Menon Executive Director MATHER & PLATT INDIA LTD P B No 7 Chinchwad Pune 411 019 Tel: +91-20-7476196 to 98, 7477434 (D) Fax: +91-20-7462519 Email: matherpn@giaspn01.vsnl.net.in CERAMIC COATING RAVI Thermal Engineers Pvt. Ltd. No.11, 4th Cross, Central Excise Layout Vijaynagar Bangalore 560 047 Tel: 080 - 330 5794 Fax: 080 - 330 3964 CERAMIC FIBRE Minwool Rock Fibres Limited 204, Kings Apartments Juhu Tara Road Juhu Mumbai 400 049 Tel: 022-56154809 Fax: 022-56178921
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Cooling water treatment chemicals Mr JayantRajvanshi Director Aqua Chemicals B-237A Road No. 6D V.K.I.Area Jaipur 302013 Tel: 0141-2331542,5061909 Fax: 0141-2331543 Email: JayantRajvanshi@aquachemicals.Com DC DRIVES Siemens Ltd. Motors, Drives & UPS Division Sector - 11, Plot 11 Kharghar Mode Navi Mumbai 410 208 Tel: 022 757 7030/ 31/ 32 Fax: 022 757 7106: DG sets Mr Mohan M Gujrar Managing Director Gurjar Power Engineers Pvt ltd no 18, Ist Floor,Corporation Building Residency Road Bangalore-560025 Tel: 080-2216416, 7469 Fax: 022-2216416 Email: gurjarmohan@yahoo.com Powerica Limited 115 Mittal Court B-Wing Nariman Point Mumbai 400021 Tel: 022-22825949
Mr Anand Kothaneth General Manager BATLIBOI ENGINEERS PVT LTD 99/2 & 99/3, N R Road Bangalore 560 002 Tel: +91-80-2235061 to 63 Fax: +91-80-2235085 Email: blr.batlico@axcess.net.in Diffuser Siemag Hi tech filters R k Industry house Walbhat Road Goregaon (E) Mumbai 400 063 Tel: 022-26851885, 3231 Fax: 022-26851048 Email: siemag@vsnl.com Dryers Mr A D Parekh General Manager HDO PROCESS EQUIPMENT AND SYSTEMS LTD 5/1/2, GIDC Industrial Estate Vatva Ahmedabad 382 445 Tel: +91-79-5830591 to 94 Fax: +91-79-5833286 Email: patfilt@ad1.vsnl.net.in ECONOMISERS Megatherm Engineers & Consultants Pvt.Ltd. 10, Kodambakkam High Road Chennai 600 034 Tel: 044 - 823 3528/ 3707 Fax: 044 - 825 8559 Mr B P Deboo Managing Partner ALBAJ ENGINEERING CORPORATION 340, Clover Centre Moledina Road Pune 411 001 Tel: +91-20-6131511, 6133018, 6121542 Fax: +91-20-6137255 Email: albaj@vsnl.com Eddy current control systems Dr. M. J. Davis Executive Director Eddy Current Controls (India) Limited Eddypuram, Chalakudy, District Thrissur Thrissur 680722 Tel: 0488-842882/716/698 Fax: 0488-842716 Efficiency enhancement coating for pumps Mr Rahul N Amin Chairman & Mg Director JYOTI LTD Industrial Area P O Chemical Industries Vadodara 390 003 Tel: +91-265-380633, 380627 Fax: +91-265-380671, 381871 Email: cmd.jyoti@sm3.sril.in
Mr Pradeep Mallick Managing Director WARTSILA INDIA LTD 76, Free Press House Nariman Point Mumbai 400 021 Tel: +91-22-2815601 / 5598, 28175995 / 5601 Fax: +91-22-2842083 Email: pradeep.mallick@wartsila.com Mr K C Dhingra Managing Director WESTERN INDIA MACHINERY CO PVT LTD Park Plaza North Block, 6E, 6th Floor 71, Park Street Kolkata 700 016 Tel: +91-33-22468913 / 9674 Fax: +91-33-22468914 Mr Sumit Mazumder Managing Director TIL LTD 1, Taratolla Road Garden Reach Kolkata 700 024 Tel: +91-33-24693732 to 36, Fax: +91-33-24692143 / 3731 Email: ug@tilindia.com Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
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Electrical Measuring Instruments Mr R R Dhoot Chairman IMP POWER LTD Advent, 7th Floor 12 - A, General J Bhosale Marg Nariman Point Mumbai 400 021 Tel: +91-22-2021890 / 886 / 697 Fax: +91-22-2026775 Email: contactus@imp-power.com Electronic ballasts Mr Shantilal patel Propreitor Nishan Power converters Krishna Vijay saw mill compound Opp S T stand, Agra Road Bhivandi-421302 Tel: 91-2522-257201 Fax: 91-2522-222032 Email: krishnas@vsnl.com Mr V Ramaraj Managing Partner OPAL NO 5, rajeswari street Mehta nagar chennai 600029 Tel: 044-23742036 / 1218 Fax: 044-23742036 / 1218 Email: opal@md2.vsnl.net.in
Email: sinhaeas@ndb.vsnl.net Energy efficient coolers for cement Industry Mr Madhusudan Rasiraju I K N engineering India pvt ltd Three star Business Centre A14 A, II nd Avenue Anna Nagar Chennai 600102 Tel: 044-26218994,6210960 Fax: 044-26284567,0439 Email: madhusudikn@vsnl.com Energy efficient drying system Mukesh Shah Director Mecord Systems and Services (P) Ltd. 314 Hill View Industrial Estate Ghatkopar West Mumbai 400086 Tel: (022)-55008604 Fax: (022)-55007560 Energy Efficient Induction Motors Mr. Sanjeev Gupta Proprietor Oxford Engineering Industries G-27, East Gokalpur, Loni Road, New Delhi 110094 Tel: 011-22280434, 22299979 ENERGY EFFICIENT MOTORS Asea Brown Boveri ltd Plot No 5 & 6, II Phase Peenya Industrial Area P B no 5806, Peenya Bangalore 560058 Tel: 080-8370416 / 8394734 extn 2322 / 6691375 Fax: 080-8399178 / 8396537 Crompton Greaves Limited CG Industrial Systems ETD Building, 2nd Floor Kanjur Marg (E) Mumbai 400 042 Tel: 022-55782451 Extn 8956/ 5795688 Fax: 022-55789169 PUMPS Mr N K Ranganath Chief Executive Grundfos Pumps India Pvt Ltd Ground floor Chamiers apartment 119/121, Chamiers road Chennai 600028 Tel: 044-24323487 / 24357065 Fax: 044-24323489
Mr.P.S.Sasidharan Managing Director Pamba Electronic Systems Pvt Ltd. 1/40A, Pamba House, Kureekkad P.O Thiruvankulam Ernakulam-682 305 Tel: 0484-711129,712721 Fax: 0484-711398 Email: pambaele@satyam.net.in Electronic energy meters Mr I C Agarwal Chairman & Mg Director GENUS OVERSEAS ELECTRONICS LTD SPL - 3, RIICO Industrial Area Tonk Road Sitapura Jaipur 302 022 Tel: +91-141-580003 / 4 / 9 Fax: +91-141-580319 Email: genus@jp1.dot.net.in Energy Efficiency & ESCO Services Mr R B Sinha Chief Executive Energy Audit Services 1116 Sector No 17 Faridabad -121 002 Tel: 0129 - 2282132/2284125/2224504 Fax: 0129 2262576

Mr N C Tiwari Assistant General Manager, Product Development & Mangement Kirloskar Brothers Limited Ujjain Road Dewas-455001 Tel: 07272-27315 Fax: 07272-27347 Email: ntiwari@dws.kbl.co.in Energy management & Control systems Mr Lalit Seth Chief Executive HPL-SOCOMEC PVT LTD Atma Ram Mansion, 2nd Floor 1/21, Asaf Ali Road New Delhi 110 002 Tel: +91-11-23236811 / 4811 Fax: +91-11-23232639 Email: hpl@hplindia.com CMS ENERGY Management systems W 324, Rabale MIDC Mumbai 400701 Tel: 91-022-27696720,86 Fax: 91-022-27694585 Energy meters Mr Qimat Rai Gupta Chairman & Mg Director HAVELLS INDIA LTD 1, Raj Narain Marg Civil Lines Delhi 110 054 Tel: +91-11-23935237 to 40 Fax: +91-11-3921500, 3981100 Email: marketing@havells.com Mr Lalit Seth Chief Executive HPL-SOCOMEC PVT LTD Atma Ram Mansion, 2nd Floor 1/21, Asaf Ali Road New Delhi 110 002 Tel: +91-11-23236811 / 4811 Fax: +91-11-23232639 Email: hpl@hplindia.com Energy Recovery Ventilator (ERV), Mr. Rajnish Joshi Exe. Vice President Arctic India Engineering Pvt. Ltd. 20, Rajpur Road, New Delhi 110054 Tel: 011-22912800 Fax: 011-22915127, 2521754 Email: bryair@nda.vsnl.net.in Energy saver for air conditioners Dr V K Koshy Chairman & Mg Director BHARAT ELECTRONICS LTD Shankaranarayan Building, 2nd Floor 25, M G Road Bangalore 560 001 Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Tel: +91-80-5595729 Fax: +91-80-5584911 Email: imd@bel-india.com Energy saver for Lighting Mr R Sekar Chairman & Managing Director ES Electronics (India) Pvt Ltd 438,4th Main Road Nagendra Block,B.S.K.I Stage, Bangalore 560050 Tel: 080-6727836 / 8761 CLIPSAL Lighting India (P) Ltd Bajaj Niwas OpP. C.K.P. Club, 712 , Linking Road, Khar (W) Mumbai Tel: 022-56046483 Energy savers for AC Induction motors Santronix india pvt ltd unit no 12 Electronic sadan III MIDC, Bhosari Pune 411026 Tel: 020-7122758 Fax: 020-7129518 Email: satronix@bom3.vsnl.net.in Energy Saving Lighting Systems. Mr. Praveen Kumar Sood Managing Director Linear Technologies India Pvt. Ltd. K-37, Green Park, Main Basement, New Delhi 110016 Tel: 011-6854395, 6854946 Fax: 011-6854057 Energy Services Consultancy Mr P S Sankaranayaran Director Avant Garde Engineers & Consultants (p) Ltd. 68A Porur Kundarathur High road Porur Chennai 600 116 Tel: 044-24828717,18,19,22 Fax: 91-44-24828531 Email: avantgrade@vsnl.com Mr Nalin Kanshal Business Director Elpro energy Dimensions Pvt ltd 6,7,8 IV N Block Dr RajKumar Road, Rajaji Nagar entrance Bangalore-560010 Tel: 080-3122676,3123238,3132035,3132036 Fax: 080-3487396 Email: support@ecoenergycentre.com
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Mr K C Patel General Manager Gujarat Perfect Engineering Ltd 301, Shailja Complex II, Akota Road Vadodara 390 020 Tel: +91-265-334861, 645786 Fax: +91-265-646880 Email: gperfect@icenet.net.in FRP BLADES Amalgamated Indl. Composites Pvt. Ltd. Unit No.111/112 Ashok Service Industrial Estate L B S Marg, Bhandup (West) Mumbai 400 078 Tel: 022-591 3591/04565, 534 6919 Fax: 022-591 3611, 5346920 Encon (India) 2 - B/17, Shivkripa N C Kelkar Road Dadar (West) Mumbai 400 028 Tel: 022 - 2437 2949, 24306578 Fax: 022 - 2431 0992, 24321929 Furnace Mr Saroj Poddar Chairman ALSTOM LTD 14th Floor, Pragati Devika Tower 6, Nehru Place New Delhi 110 019 Tel: +91-11-26449906, 6449907, 6449902 / 3 Fax: +91-11-26449447 Mr. Arun Gandhi Proprietor Crescent Engineering Corporation 49, H-32, Sector - 3, Rohini, New Delhi 110085 Tel: 011-27164109, 27276448 Fax: 011-27274553, 27162490 Mr Vilas H Patil Managing Director DYNAMIC FURNACES PVT LTD 65, Universal Industrial Estate I B Patel Road Goregaon (E) Mumbai 400 063 Tel: +91-22-58733516 Fax: +91-22-58733021 Email: tarsod@bom3.vsnl.net.in Mr R P Sood Managing Director ENCON FURNANCES PVT LTD 14/6, Mathura Road Faridabad 121 003 Tel: +91-129-274408, 275307 / 607 Fax: +91-129-276448

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Mr. P Anil Kumar Managing Director TOWLER ENTERPRISE SOLUTIONS PVT.LTD HARMAN HOUSE 482, 80 FT ROAD, GANGANAGAR BANGALORE 160032 Tel: 080-3530033-36,3432289 Fax: 080-3431548 Mr Lalit Kumar Pahwa Managing Director HARMAN INNOVATIVE TECHNOLOGIES LTD Harman House 482, 80 FT Road Ganganagar Bangalore 560 032 Tel: +91-80-3530036 / 37 Fax: +91-80-3431548 Email: indo@harmanit.net.in harmonic filters Power Linkers 122,Nahar & seth estate chakala Mumbai 400099 Tel: 022-28325565, 28371902 Fax: 022-28386025 Email: powersys@vsnl.com Harmonic measurement and analysis Power Linkers 122,Nahar & seth estate chakala Mumbai 400099 Tel: 022-28325565, 28371902 Fax: 022-28386025 Email: powersys@vsnl.com Harmonic utility Equipments Mr Parag J Pandya CEO Amtech Electronics India ltd E - 6 GIDC Electronics Zone Gandhi Nagar Gandhi Nagar 382 028 Tel: 079 - 3225324/3227294/3227304 Fax: 079 - 3224611 Email: info@amtechelectronics.com Heat exchanger Mr M Sreenivasan Chief Executive SUPER ENGINEERING COMPANY B - 1, Industrial Estate Ariamangalam Trichy 620 010 Tel: +91-431-2441131 Fax: +91-431-2441366
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Mr Mohammed Meeran Proprietor AASIA RADIATORS P S C Bose Road Jawahar Autonagar Vijayawada 520 007 Tel: +91-0866-543881 Fax: +91-0866-545860 Mr Ajit Singh Chief Executive Officer AIRFRIGE INDUSTRIES 10/65, Kirti Nagar Industrial Area New Delhi 110 015 Tel: +91-11-55931909 / 72 Fax: +91-11-55436781 Email: afi@del3.vsnl.net.in Mr B P Deboo Managing Partner ALBAJ ENGINEERING CORPORATION 340, Clover Centre Moledina Road Pune 411 001 Tel: +91-20-6131511, 6133018, 6121542 Fax: +91-20-6137255 Email: albaj@vsnl.com Mr Deepak Singh Executive Director BUILDWORTH PVT LTD G S Road Dispur Guwahati 781 005 Tel: +91-361-560354 Fax: +91-361-561411 Email: bwpl@gwl.vsnl.net.in Mr Sucha Singh Managing Director COIL COMPANY PVT LTD A - 21/24, Naraina Industrial Area New Delhi 110 028 Tel: +91-11-55701967 / 1968 / 9127 Fax: +91-11-55709126 Email: coilco@nda.vsnl.net.in Er Ashok Kumar Gupta Chairman CRANE-BEL INTERNATIONAL Dev - Satya Bhavan C - 23, Lohia Nagar Ghaziabad 201 001 Tel: +91-120-4722994, 4716883, 4713281/82 Fax: +91-120-4712709, 4722995 Email: international@crane-bel.com Mr. Dinesh Harjai Partner Crupp Metals Kh. No. 56/1, Mundka, Rohtak Road, New Delhi 110041 Tel: 011-55189024, 55474133 Fax: 011-55183085 Mr B Pattabhiraman Managing Director GB Engineering Enterprises Pvt Ltd D - 99, Developed Plots Estate
Thuvakudi Trichy 620 015 Tel: +91-431-501111 (8 lines) Fax: +91-431-500311 Email: gbengg@tr.dot.net.in Mr K C Patel General Manager GUJARAT PERFECT ENGINEERING LTD 301, Shailja Complex II Akota Road Vadodara 390 020 Tel: +91-265-334861, 645786 Fax: +91-265-646880 Email: gperfect@icenet.net.in Mr C P Maheshwari Managing Director HC GIDDINGS PVT LTD 3, Chittaranjan Avenue Kolkata 700 013 Tel: +91-33-2272820, Fax: +91-33-22372820 Mr A D Parekh General Manager HDO PROCESS EQUIPMENT AND SYSTEMS LTD 5/1/2, GIDC Industrial Estate Vatva Ahmedabad 382 445 Tel: +91-79-5830591 to 94 Fax: +91-79-5833286 Email: patfilt@ad1.vsnl.net.in Mr B S Adishesh Wholetime Director IAEC INDUSTRIES MADRAS LTD Rajamangalam Villivakkam Chennai 600 049 Tel: +91-44 26257783 Fax: +91-44-24451537 Email: iaec.mds@elnet.ems.vsnl.net.in Mr M K Sen Managing Director INCORPORATED ENGINEERS LTD D - 400, Gayatri MIDC, Uran Phata Nerul Navi Mumbai 400 706 Tel: +91-22-57619352 Fax: +91-22-57619368 Email: idvl@bol.net.in Mr Ranjit Puri Chairman & Mg Director INDIAN SUGAR & GENERAL ENGINEERING CORPORATION (THE) A - 4, Sector 24 Noida 201 301 Tel: +91-118-4524071 / 72 Fax: +91-118-4528630, 4529215, 4542072 Email: rp@isgec.com

Mr S V Mehta Chairman & Director INDUSTRIAL MACHINERY MANUFACTURERS PVT LTD 3607 - 3609, GIDC Estate Phase IV Vatva Ahmedabad 382 445 Tel: +91-79-5831152 / 1449 Fax: +91-79-5832216 Email: sysadmin@immpl.xeeahm.xeemail.com Mr L Chandrashekar Managing Partner MYSORE ENGINEERING ENTERPRISES No 169, Industrial Suburb II Stage P B No 5859, Peenya Post Bangalore 560 058 Tel: +91-80-8394423 Fax: +91-80-3349746 Email: keeebgl@vsnl.net.in Mr V David Selvaraj Vice President (Operations) PARANI STEELS PVT LTD AL - 84, 4th Street 11th Main Road Anna Nagar Chennai 600 040 Tel: +91-44-26286285 / 2246 / 2247 Fax: +91-44-26211265 Mr Ramesh Wadhwani Managing Director UNITOP ENGINEERS PVT LTD 78/1, GIDC Industrial Estate P O Box No 761 Makarpura Vadodara 390 010 Tel: +91-265-642161 / 62 Fax: +91-265-644698 Email: unitop@unitopengrs.com Mr Chakor L Doshi Chairman WALCHANDNAGAR INDUSTRIES LTD 3, Walchand Terraces Opp Air Conditioned Market Tardeo Mumbai 400 034 Tel: +91-22-54939498, 54934800 Fax: +91-22-54936655 Mr Pashupati Nath Kapoor Partner KASHI INDUSTRIES 16/80, B 1 Civil Lines Kanpur 208 001 Tel: +91-512-311395, 319074 Fax: +91-512-319074 Mr Roy Eapen Proprietor HEAT TRANSFER DEVELOPMENT 84 - C, Jeevan Complex 5th Cross, 100 Feet Road Gandhipuram Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Coimbatore 641 012 Tel: +91-422-2858271 / 2 Fax: +91-422-2447341 Mr J Peter Arokiam Managing Director Manikam Radiators Pvt Ltd 11/275 - B, Subramaniapalayam K N G Pundur Road G N Mills Post Coimbatore 641 029 Tel: +91-422-2843311 / 12 Fax: +91-422-2843311 Email: mrad@md4.vsnl.net.in Heat recovery boilers Mr K G Ramachandran Chairman & Mg Director BHARAT HEAVY ELECTRICALS LTD BHEL House Siri Fort New Delhi 110 049 Tel: +91-11-26001010 Fax: +91-11-26493021, 26492534 Heat Recovery Wheel (HRW) Mr. Rajnish Joshi Exe. Vice President Arctic India Engineering Pvt. Ltd. 20, Rajpur Road, New Delhi 110054 Tel: 011-2912800 Fax: 011-2915127, 2521754 Email: bryair@nda.vsnl.net.in Mr R N Bakshi Managing Director UNITHERM ENGINEERS LTD 101, Laxmi Market, 1st Floor Vartak Nagar Junction, Pokhran Road No 1 Mumbai 400 606 Tel: +91-22-55406131 Fax: +91-22-55406569 Email: unitherm@vsnl.com Mr. S. R. Babbar Partner Wellmake Engineering Company A-28,Mangolpuri Indl. Area, Phase-II, New Delhi 110034 Tel: 011-27018199, 27025409 Fax: 011-27019330 Mr. Liakat Ali Proprietor Premier Electric Company Plot No.7, 12/2 Mathura Road, Faridabad 121002 Tel: 0129-270858, 274311 Fax: 0129-270858
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High Efficiency Electric Transformers Mr. Liakat Ali Proprietor Premier Electric Company Plot No.7, 12/2 Mathura Road, Faridabad 121002 Tel: 0129-270858, 274311 Fax: 0129-270858 Mr. T. V. Joseph General Manager Transformers and Electricals Kerela Ltd.(TELK) Angamaly P.O. 683573, Angamaly 683573 Tel: 04856-452251 Fax: 04856-452873 High efficiency power distribution & special Transformers. Mr. Nitin Nayak Director El -Tra Equipment Company (India) Pvt. Ltd. 11th Mile, Old Madras Road, Avalahalli, P.O. Virgonagar, Bangalore 560049 Tel: 080-8510652, 8472229 Fax: 080-8510652 Email: eltrablr@hotmail.com High Efficiency Pumps Sulzer Pumps India Ltd No.9, MIDC, Thane Belapur Road Dingha, Navi Mumbai 400 708 Tel: +91 22 5790 4321 Fax: +91 22 5790 4306 Email: sulpump@vsni.com HT capacitors, Furnace duty capacitors Mr. M.D. Killedar Manager (Works) Goa Capacitors Pvt. Ltd. 14, Corlim Industrial Estate, Corlim, Ilhas, Panaji 403110 Tel: 0832-286176/240 Fax: 0832-286203 Humidifiers Mr S V Mehta Chairman & Director INDUSTRIAL MACHINERY MANUFACTURERS PVT LTD 3607 - 3609, GIDC Estate Phase IV, Vatva Ahmedabad 382 445 Tel: +91-79-5831152 / 1449 Fax: +91-79-5832216 Email:sysadmin@immpl.xeeahm.xeemail.com HVAC Mr. Sandeep Saxena Manager Capital Enterprise 36 Industrial Estate MLN Regional Engineering College Allahabad 211002 Tel: 545362 Fax: 461775 Email: mall@vsnl.com Incinerators Mr S M Jain Vice President ADOR TECHNOLOGIES LTD Plot No 53, 54 & 55 F - II Block, MIDC Area, pimpri Pune 411 018 Tel: +91-20-7470225, 7476009 Fax: +91-20-7470224 / 7358 Email: info@ador-technologies.com Mr U V Rao Director ALLIED CONSULTING ENGINEERS PVT LTD Allied House Road No 1, chembur Mumbai 400 071 Tel: +91-22-55284028 Fax: +91-22-55283805 Email: ace@bom3.vsnl.net.in Mr M K Sen Managing Director INCORPORATED ENGINEERS LTD D - 400, Gayatri MIDC, Uran Phata Nerul Navi Mumbai 400 706 Tel: +91-22-57619352 Fax: +91-22-57619368 Email: idvl@bol.net.in Induction heaters Inventum engineering company P O box 9435 Andheri (E) Mumbai 400093 Tel: 022-26730499/ 590 Fax: 022-26730887 Email: inventun@vsnl.net.in Industrial Ceramics Mr N Anjiah Managing Partner Annapurna Annapurna Technical ceramics 21-118 Kakani Nagar Vizag 534007 Email: atceramics@hotmail.com

Industrial furnaces Mr U V Rao Director Allied Consulting Engineers Pvt Ltd Allied House Road No 1, chembur Mumbai 400 071 Tel: +91-22-55284028 Fax: +91-22-55283805 Email: ace@bom3.vsnl.net.in Mr Anup Dasgupta Director FIRE GASES & KILN (INDIA) PVT LTD 156, Jodhpur Park Kolkata 700 068 Tel: +91-33-4730164 / 1289, 4728391 / 2 Fax: +91-33-4731540 Mr S L Mathur Managing Director STEIN HEURTEY INDIA PROJECTS PVT LTD 8/1, Middleton Row Kolkata 700 071 Tel: +91-33-2260194, 2457484 / 89 Fax: +91-33-2443636, 2476655 Email: shipp@cal.vsnl.net.in Mr R K Agrawal Chief Executive Officer Eastern Equipment & Engineers S - 14, Civil Township Rourkela 769 004 Tel: +91-61-502508, 503898 Fax: +91-61-503898 Email: sanghi@cal2.vsnl.net.in Aero therm systems pvt ltd Plot no 1517 Phase III GIDC Vatwa Aheemedabad 382445 Tel: 079-5890158 Fax: 079-5834987 Email: vadherad1@sancharnet.in Instrumentation control systems Mr M L Anand Chairman ANAND CONTROL SYSTEMS PVT LTD D - 67/68, Sector VI Noida 201 301 Tel: +91-118-4537395, 4554627 Fax: +91-118-4533782 Email: anandpwr@nda.vsnl.net.in Fisher Rosemount (India) Limited D Wing, 2nd Floor Modern Mills Compound Mahalaxmi Mumbai 400 011 Tel: 91 22) 462 0462 Fax: (91 22) 462 0500 Libratherm Instruments 402, Diamond Industrial Estate Ketki pada Road Dahisar East Mumbai 400068 Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Tel: 022-28960659 Fax: 022-28963823 Email: libratherm@vsnl.com Mr. Prem Dua Director Puneet Industrial Controls Pvt. Ltd. 45 Community Centre, East of Kailash, New Delhi 110065 Tel: 011-26423328, 26419479 Fax: 011-26423328 Mr P S Sridharan Managing Director MEGATECH CONTROL PVT LTD Alsha Complex 51, 1st Main Road Gandhi Nagar Chennai 600 020 Tel: +91-44-24996733 / 5654 Fax: +91-44-24341668, 4996215 Email: megatech@md2.vsnl.net.in Mr A N Sen Managing Director AN INSTRUMENTS PVT LTD 59 - B, Chowringhee Road 5th Floor Kolkata 700 020 Tel: +91-33-2402222, 2472509 Fax: +91-33-2806684 Email: ani@cal.vsnl.net.in Insulation Lloyds Insulation 386, Veer Savarkar Marg Mumbai 400 025 Tel: 022-54340876 Fax: 022-54376858 Intermediate controller for compressed air Mr Kiran C pande Manager-Compressed air management solutions Godrej & boyce manufacturing company ltd Pirojshanagar, Vikhroli Mumbai-400079 Tel: 022-55962251-56 Fax: 022-55961525 Email: hnd@godrej.com Inverter welding Tejas Enterprises C/5/72 Sahyadri Nagar Charakop, Kandivili West Mumbai 200067 Tel: 022-2867869 Email: sillweld@yahoo.co.in
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Jet Tower-Induced draught without fan and Fills Mr Bhagwan Harani Technical Director Armec group Armec house Tiny Industrial estate,Kondhwa (B) Pune-411048 Tel: 020-6930218 Fax: 020-6930537 Email: armecbom@vsnl.com Kiln furniture systems Mr N G Manoharan Managing Director Abref Private ltd NO 32, Meeran Sahib street Anna Salai Chennai-600002 Tel: 044-28250074 Fax: 044-28233486 Email: abref@snl.com Kilns Mr M K Sen Managing Director INCORPORATED ENGINEERS LTD D - 400, Gayatri MIDC, Uran Phata Nerul Navi Mumbai 400 706 Tel: +91-22-57619352 Fax: +91-22-57619368 Email: idvl@bol.net.in Mr Mithu S Malaney Chairman & Mg Director VULCAN ENGINEERS LTD 427, Unique Industrial Estate Off Veer Savarkar Marg Prabhadevi Mumbai 400 025 Tel: +91-22-4304529 / 3671 Fax: +91-22-4225814 Email:vulcan.engnr@vel.sprintrpg.ems.vsnl.net .in Mr Anup Dasgupta Director FIRE GASES & KILN (INDIA) PVT LTD 156, Jodhpur Park Kolkata 700 068 Tel: +91-33-4730164 / 1289, 4728391 / 2 Fax: +91-33-4731540 LED based medium intensity aviation obstruction light Binay opto electronics Private ltd 44,Armenian street Calcutta 700001 Tel: 033-2429082,2103807 Fax: 033-2421493 Email: info@binayled.com LED indicator modules Binay opto electronics Private ltd 44,Armenian street Calcutta 700001 Tel: 033-2429082,2103807 Fax: 033-2421493 Email: info@binayled.com Low energy consuming Portable Generators Mr. Wasim Javed Birla Yamaha Limited A-7, Ring Road, N. D. S. E. Part - 1, New Delhi 110049 Tel: 011-24690352 to 54 Fax: 011-24626188 Low loss Power & Distribution Transformers Mr. Adrian J DSouza Director Southern Power Equipment Company 42, Yumkur Road, Yeshwanthpur, Bangalore 560022 Tel: 080-3372996, 3372741 Fax: 080-3372997 Email: LT Power capacitors Mr. M.D. Killedar Manager (Works) Goa Capacitors Pvt. Ltd. 14, Corlim Industrial Estate, Corlim, Ilhas, Panaji 403110 Tel: 0832-286176/240 Fax: 0832-286203 NEUTRAL COMPENSATOR Static Transformers (P) Ltd G-4, A/D, Industrial Estate Polo Ground Indore 452 015 Tel: 0731 - 420 793, 420 859 Fax: 0731 - 431 968, 420793 Email: static@sancharnet.in Oil coolers Mr Mohammed Meeran Proprietor AASIA RADIATORS P S C Bose Road Jawahar Autonagar Vijayawada 520 007 Tel: +91-0866-543881 Fax: +91-0866-545860

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Power control equipments, Mr A Sarkar Vice President SCHNEIDER ELECTRIC INDIA LTD 58, MIDC Area, Satpur Nashik 422 007 Tel: +91-253-350394 / 95 / 96 Fax: +91-253-350771 Email: asarkar@pobox.com Power factor compensation
Mr. Dinesh Harjai Partner Crupp Metals Kh. No. 56/1, Mundka, Rohtak Road, New Delhi 110041 Tel: 011-5189024, 5474133 Fax: 011-5183085 Ovens Mr N Gopinath Managing Director FLUIDTHERM TECHNOLOGY PVT LTD SP - 132, III Main Road Ambattur Industrial Estate Chennai 600 058 Tel: +91-44-26357390, 26357391 Fax: +91-44-26257632 Email: fluidtherm@vsnl.com Mr M Gopal Managing Director HIGHTEMP FURNACES LTD I - C, Phase II, P B No 5809 Peenya Industrial Area Bangalore 560 058 Tel: +91-80-8395917 / 4076 / 1446 Fax: +91-80-8397798 / 2661 Email: hightemp@vsnl.com Plate & spiral heat exchangers,dryers & evaporators Mr Satish Tandon Managing Director ALFA LAVAL (INDIA) LTD Mumbai Pune Road Dapodi Pune 411 012 Tel: +91-0212-27127721 Fax: +91-02121-2797711 Email: satish.tandon@alfalaval.com Power Consultants Mr D B Arora Managing Director Acon Power consultants 45, Satyanand Vihar Rampur Jabalpur-482008 Tel: 91-0761-2667261, 9826246688 Fax: 91-0761-2664207 Email: acon@sancharnetin
Neptune India ltd Neptune house C 270 SFS Sheikh sarai, Phase I New Delhi 110017 Tel: 011-6013367-70 Fax: 011-6013371 Email: neptune@del2.vsnl.net.in Power Factor controller CMS ENERGY Management systems W 324, Rabale MIDC Mumbai 400701 Tel: 91-022-27696720,86 Fax: 91-022-27694585 Mr. R. K. Iyer Vice President Saha Sprague Limited No.805, North Rear Wing, 8th Floor, Manipal Centre, 47, Dickenson Road, Bangalore 560042 Tel: 080-5595463, 5595266 Fax: 080-5595463 Pumps Mr D K Hohenstein Chief Executive Officer KSB PUMPS LTD Mumbai Pune Road P O Pimpri Pune 411 018 Tel: +91-20-7472006, 7473684 Fax: +91-20-7476120 Email: hohensteindk@ksb.co.in Mr K C Dhingra Managing Director Western India machinery co pvt Ltd Park Plaza North Block, 6E, 6th Floor 71, Park Street Kolkata 700 016 Tel: +91-33-2468913 / 9674 Fax: +91-33-2468914 Radiant heater Mr. Ashok Tanna Managing Director Vinosha Boilers Pvt. Ltd. And Taurus Heat Systems Baarat House, Ist Floor, 104, Apollo Street, Fort, Mumbai 400001 Tel: 022-22674590 Fax: 022-22611515
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RADIANT TUBE RECUPERATIVE HEATER Mr U V Rao Director ALLIED CONSULTING ENGINEERS PVT LTD Allied House Road No 1, chembur Mumbai 400 071 Tel: +91-22-55284028 Fax: +91-22-5283805 Email: ace@bom3.vsnl.net.in Reactive compensator Emco Electronics 106, Industrial area Sion (East) Mumbai 400022 Tel: 022-224096731/782 Fax: 022-24096039 Reactive power compensation Equipment and systems Mr. S. M. Subba Rao Adviser Meher Capacitors (P) Ltd. 52/1, Basappa Road, Shantinagar, Bangalore 560027 Tel: 080-2236879, 2241272 Fax: 080-2225325 Reactors Mr Ranjit Puri Chairman & Mg Director INDIAN SUGAR & GENERAL ENGINEERING CORPORATION (THE) A - 4, Sector 24 Noida 201 301 Tel: +91-118-4524071 / 72 Fax: +91-118-4528630, 4529215, 4542072 Email: rp@isgec.com Reciprocating & centrifugal pumps Mr Hemant Didwania Director INDIAN COMPRESSORS LTD 33, Okhla Industrial Estate New Delhi 110 020 Tel: +91-11-6839440 / 9, 635030 Fax: +91-11-6840020 Recuperators Mr R K Agrawal Chief Executive Officer EASTERN EQUIPMENT & ENGINEERS S - 14, Civil Township Rourkela 769 004 Tel: +91-61-502508, 503898 Fax: +91-61-503898 Email: sanghi@cal2.vsnl.net.in AQUAMEAS (Danfoss) Commerce avenue, 3rd floor, Mahaganesh SOC., Paud Road Pune 411 038 Tel: +020 544 9767, 544 9757 Fax: +020 542 0401 Email: aquameas@vsnl.net Eureka Industrial Equipments Pvt. Ltd. Royal Chambers, Paud Road, Pune 411038 Tel: 91 20 5443079 / 4004535/ 4004554 Fax: 91 20 5441323 Fitzer Instruments (India) Pvt. Ltd. Near Ambivli Station (W) P.O. Mohone Thane 421 102 Tel: 0251 2271321 Fax: 0251 2271336 Email: fitzer@bom7.vsnl.net.in Mr Madhukar Sinha Managing Director Associated Plates & Vessels Pvt Ltd 1/A 14, 15 & C - 17, Industrial Area Bokaro Steel City, Bokaro 827 104 Tel: +91-6542-51034, 51434 Fax: +91-6542-51334 Email: apvpl@dte.vsnl.net.in, msinha32@hotmail.com Rotometers Refractories TATANAGAR REFRACTORIES & MINERALS CO LTD Chamber Bhawan Bistupur Jamshedpur 831 001 Tel: +91-657-427187, 435039, 428044 Fax: +91-657-428044 Mr K S Swaminathan Mg Director & Vice Chairman Tata Refractories Ltd P O Belapur Jharsuguda 768 218 Tel: +91-6645-50260 Fax: +91-6645-50243 Daka Monolitics Pvt. Ltd. 32-B, Samachar Marg Opp. Allahabad Bank Mumbai 400 023 Tel: 044 - 2265 4837 Refrigeration Dryers. Mr. Rajnish Joshi Exe. Vice President Delair India Pvt. Ltd. 20, Rajpur Road, New Delhi 110054 Tel: 011-22912800 Fax: 011-22915127 Email: bryair@nda.vsnl.net.in Rotary kilns

Separator and other oil & gas processing equipments Mr A D Parekh General Manager Hdo Process Equipment And Systems Ltd 5/1/2, GIDC Industrial Estate Vatva Ahmedabad 382 445 Tel: +91-79-5830591 to 94 Fax: +91-79-5833286 Email: patfilt@ad1.vsnl.net.in Servo voltage stabiliser Green Dot electric corporation G 9, Hem Kunt Tower 98, Nehru Place, New delhi 100019 Tel: 011-26416395 Fax: 011-26222088 Email: greendotindia@hotmail.com Soft starter Excellent Industrial Instruments 1/63, Type E Sidco Nagar Villivakkam Chennai 600049 Tel: 044-26172977 Fax: 044-26172531 Mr. K. W. Kekane Director Sales Minilec Marketing Services Pvt. Ltd. S.No. 1073/1-2-3, At. Post. Pirancoot, Tal. Mulshi, Pune 412111 Tel: 02139-22162, 22354 to 57 Fax: 02139-22134, 22180 Mr Ranjan Kumar De Country Manager ALLEN BRADLEY INDIA LTD C - 11, Industrial Area Site IV,shahiabad Ghaziabad 201 010 Tel: +91-120-471112 / 0103 / 0105 / 0164 Fax: +91-120-4770822 Email: msseshadri@ra.rockwell.com, rnm@raabil.com Soot Blower with Industrial Boilers Mr. R. Rajshekhar Managing Director R R Techno Mechanicals (P) Ltd. 94, Thiru Vi Ka Industrial Estate, Guindy, Chennai 600032 Tel: 044-22346693 Fax: 044-24918183, 22333204 Sound proof gensets Mr R N Khanna Managing Director CONTROLS & SWITCHGEAR CO LTD 222, Okhla Industtrial Estate New Delhi 110 020 Tel: +91-11-6918834 to 37, 6836170 / 020 Fax: +91-11-6848241 / 7342 / 8245 Email: cs222@giasdl01.vsnl.net.in Investors Manual for Energy Efficiency for Small & Medium Scale Enterprises
Speciality Refrigerants/Propellants K.Ganesh Marketing manager (South Asia) Regional Segment Manager Dupont Flurochemicals E.I.DuPont India Ltd Arihant Nitco Park,^th Floor 90,Dr.Radha Krishnan Road Mylapore chennai 600004 Tel: 044-28472800,28473752(D) Fax: 044-28473800 Email: k.ganesh@ind.dupont.com Split air conditioner Mr Brij Raj Punj Chairman Lloyd Electric & Engineering Ltd M - 13A, Punj House Connaught Place New Delhi 110 001 Tel: +91-11-23329091 to 98 Fax: +91-11-23326107 Email: lloyd@giasdl01.vsnl.net.in Star -delta-star converter Mr M Vijayasarathy Managing Director Vijay Energy Products Pvt Ltd S P - 75, Ambattur Industrial Estate Chennai 600 058 Tel: +91-44-26254326, 26256883 Fax: +91-44-28282906, 26255185 Email: vijayenergy@eth.net Ambetronics 4B Pushotam Girgaon Near Dream Land Cinema Mumbai 400004 Tel: 022-28371143 Excellent Industrial Instruments 1/63, Type E, Sidco Nagar Villivakkam Chennai 600049 Tel: 044-26172977 Fax: 044-26172531 Steam jet ejectors Forbes Marshall PB No 29, Mumbai-Pune road Kasarwadi Pune 411034 Tel: 91-0212-21279445 Fax: 91-0212-797413 Mazda Controls Ltd MAZDA HOUSE ANCHWATI 2ND LANE, AMBAWADI AHMEDABAD 380006 Tel: 79 6431151 Fax: 79 6565605 STEAM TRAP MONITOR Spirax Marshall Limited P B No.29, Mumbai-Pune Road Kasarwadi,Pune 411 034 Tel: 020 - 794 495 Fax: 020 - 797 593/ 413
List of Suppliers
Steel tubes for boilers Tube Products of India Post Box No. 4, Avadi Chennai 600 054 Tel: 91 44 26384040 Fax: 91 44 26384051 Email: SatianathP@murugappa.co.in Superheater & Economiser Mr Ranjit Puri Chairman & Mg Director INDIAN SUGAR & GENERAL ENGINEERING CORPORATION (THE) A - 4, Sector 24 Noida 201 301 Tel: +91-118-4524071 / 72 Fax: +91-118-4528630, 4529215, 4542072 Email: rp@isgec.com SYNTHETIC FLAT BELTS Elgi Ultra Industries Ltd. Elgi House, Trichy Road Ramanathapuram Coimbatore 641 045 Tel: 0422 2304141 Fax: 0422 - 2311 740 Habasit Iakoka Pvt. Ltd. C - 207, Kailas Esplanade Opp. Shreyas Cinema L B S Marg, Ghatkopar Mumbai 400 086 Tel: 022 - 5500 2464 Fax: 022 - 5500 2466 NTB group NTB House, A-302 Road No.32, Wagle Estate, Thane 400 604 Tel: (091)-22-55822118,55821582 Fax: 55810056, 55823778 NTB International ltd A 302, Road no 32 Wagle estate Thane 400604 Tel: 022-25821582, 25822118 Fax: 022-25810056 Email: ntbgroup@vsnl.com Systems engineering for captive power Generation Mr D R Dhingra Managing Director Continental Generators Pvt Ltd 3869, Behind Primary School, G B Road Delhi 110 006 Tel: +91-11-7535566 to 68, 525632 Fax: +91-11-7516598, 528510 Vaccum Pumps Kakati Karshak Industries Pvt. Ltd Nacharam Industrial Area Hyderabad 500 076 Tel: 91-40-7153104/05 Fax: 91-040-7171980 Email: cvrao@hd1.vsnl.net.in Nash vaccum pumps 67 UPS, Kaggadaspura Extension Guru Layout Bangalore Tel: (+91) 80 - 521 49 38 Fax: (+91) 80 - 528 43 37 Email: nashwater@mantraonline.com PPI PUMPS PVT LTD 4/2 PHASE 1 G I D C VATWA AHMEDABAD 382445 Tel: 079-5832273/4 / 5835698 Fax: 079-5830578 Variable Drives, Mr. Liakat Ali Proprietor Premier Electric Company Plot No.7, 12/2 Mathura Road, Faridabad 121002 Tel: 0129-270858, 274311 Fax: 0129-270858 Variable fluid couplings Mr Praveen Sachdev Mg Director & CEO GREAVES LTD 1, Dr V B Gandhi Marg P O Box 91 Mumbai 400 001 Tel: +91-22-2671524 / 4913 Fax: +91-22-2677850, 2652853 Variable Frequency Drive Mr Ramnath S Mani Managing Director Control Techniques India Limited 117/B, Developed Plot Industrial Estate Perungudi Chennai 600 096 Tel: 044-24961123 / 1130 / 1083 Mr. Balagopal Managing Director Dynaspede Integrated Systems (P) Limited 136-A Sipcot Industrial Complex Hosur 635126 Tel: 91-4344 - 2276915, 2276813 Fax: 91-4344 - 2276841 TEMPERATURE INDICATOR CONTROLLER (TIC) Ensave Systems Private Limited 3, Anand Shopping Center Second Floor, Bhattha, Paldi Ahmedabad 380 007 Tel: . 079 662 1116 Fax: 079 663 7907

List of Energy Auditors V. Shanmugavel & Associates, [Indian Institute Of Research], 63, Rangnathan St.,T-Nagar, Chennai-17. Ph.044-24342756, 24336529, 24327447. Fax.044-24327447. E-Mail:shan@giasmd01.vsnl.net.in U V Krishna Mohan Rao Associates (UVKA) 62 Muthuvel Naicker Street, Kodambakkam Chennai 600 024 Telephone : 044 2483 2859 Telefax : 044 2484 4172 email : uvkrao@vsnl.net TV Sddeutschland India Private Limited, 321, Solitaire Corporate Park, Bldg. NO. 3 2ND Floor, Chakala, Andheri (EAST), Mumbai - 400 093 Tel.: 022 - 5692 3415 / 16 Fax: 022-5692 3418 E-mail: tuvbombay@tuvindia.com Website www.tuvindia.com The Energy and Resources Institute (TERI), Darbari Seth Block, India Habitat Centre, Lodhi Road, New Delhi - 110 003 Tel: 91-11-24682100/2111 Fax: 91-11-24682144/2145 Email: mailbox@teri.res.in Thapar Centre for Industrial Research & Development Bhadson Road Patialal 147004 Fax: 01752364012/2365522 Tel: 0175-2365510/2393605 director@thaparesearch.org roy@thaparresearch.org Tensor Consulting Engineers (Chennai) Pvt.Ltd., Flat No.20, Mahalaxmi Apartments, #1, 4th Street,Nandanam Extension, Chennai 600 035. Ph.: 044-24320426, TeleFax : 044-24320596 E-mail : tce@md4.vsnl.net.in SEE-Tech Solutions Pvt. Ltd., 11/5, Letsconserve, MIDC Infotech Park, Behind Infotech Tower, South Ambazari Road, Nagpur - 440022. Tel: 0712-2222177 Fax: 2225293
Textile, Steel, Chemical, Engineering, Paper, Commercial Buildings
Building, Cement, Ceramics, Chemicals, Confectinery, Dairy, Engineering, Food & Beverages, Paperboards, Printing & Packaging, Pulp & Paper, Sugar, Textile,Tyres & Rubber products
Agro & Food, Buildings, Cement, Engineering, Automobile, Leather, Steel, Oil & Gas, Paper, Chemical, Pharmaceutical, Rubber, Textile, Sugar & Glass
Alluminium; Fertilizers; Iron & Steel; Cement; Chemicals, Pulp & paper; Sugar; Textile; Chlor Alkali; Petro Chemicals; Power plants; Port Trust, Buildings & Hotels; Engineering, Electrical Distribution Companies
Pulp & Paper Steel industries Commercial Establishments
Pump & Paper, Textile, Transport Sectors (Industries & Services), Chemical, Iron & Steel
Iron & Steel, Aluminium, Cement, Petrochemical, Textile, Pulp & Paper, Chemical, Buildings, Fertilizer, ChlorAlkali,

Email: seemil_ngp@sancharnet.in Synergy Management Services BD-62, SEC - I, Salt Lake City Kolkata - 700 064 PH : 033- 23342663 FAX : 033- 23376290 EMAIL : mm_ghosh@hotmail.com Saket Projects Limited Saket House, Panchsheel, Usmanpura, Ahmedabad - 380 013. Tel. No. : 079-27551817, 27551931, 27552873 Fax No. : 079-27550452 E-mail : mail@saketprojects.com M/S Rayon Applied Engineers 117/1,Gupta Compound, Pipliapala A.B. Road Indore-450017 (M.P.) PH- 0731-2440637FAX NO.-07312475281 E-MAIL- rayon_engg@rediffmail.com National Thermal Power Corporation Ltd. Scope Complex, Institutional Area, Lodhi Road New Delhi.
a) Iron & Steel b) Metallurgical c) Chemical d) Thermal Power Station e) Textile f) Cable manufacturing g) Tea Industry
Gas & Petrolium, Chemicals, Fertilizers, Textiles, Dairy, Infrastructures, Soap & Detergent, Commercials
1. Cement Industries 2. Automobile Industries 3. Textile Industries 4. Fertilizers Industries 5. Engineering Industries 6. Steel Industries 7. Food Products Industries 8. Oil Industries
Sectors- Power Generation (Coal fired & Gas fired combined cycle Power Plants)
Kirloskar Consultants Limited 13-A, Kirloskar Kisan Compound Karve Road, Kothrud PUNE - 411 038
Iron and Steel, Cement, Chlor Alkali, Textile, Chemicals, Port Trust, Commercial Buildings and Establishments, Engineering Units, Foundry, Pharmaceuticals, Automobile, Pumping Systems, Oil & Vegetable Manufacturing, Pump Manufacturing, Compressor Manufacturing, Software Units, Co-generation Textiles, Fertilizers,Engineering, Chemical, Aluminium, Forging, Food, Steel, Hospitals, Commecial Buildings, Pumping Stations, Automobiles.
Northern India Textile Research Association Sector 23, Raj Nagar Ghaziabad (UP)- 201 002 PH: 0120-2783586, 2783592, 2783638 FAX: 0120-2783596 E-Mail: nitra@nde.vsnl.net.in M K Raju Consultants Private Limited 16, Srinagar Colony Temple Avenue, Chennai - 15 Tele No. 2235 1151 Fax No. 2235 1070 Email: admin@mkrajuconsultants.com Mitcon Consultancy Services Ltd. Kubera Chambers, Shivajinagar, Pune - 411 005, Maharashtra Ph: 91-020 - 2553 3309 / 2553 4322 Fax : 020 - 2553 3206 E-mail:
All
1) Textile 2) Chemicals / Pharmaceuticals / Petrochemicals 3) Foundry 4) Engineering 5) Plastics 6) Hotels & Commercial Establishments 7) Paper 8) Water Works 9) Food 10) Rubber & Tyre 11) Plywood 12)Explosives Refinery
List of Energy Auditors deepakzade@indiatimes.com deepakzade2003@yahoo.com Homepage: www.mitconindia.com Maruti Consultants 195, O.U.Teacher's colony, Sainikpuri, Hyderabad 500094, Tel:040-27111021, 040-27110755, FaxNo: 040-27111021, e-mail:ivrkumar_hyd@dataone.in Mecon Limited, P.O. Doranda, Ranchi 834002, Jharkhand Ernst & Young Pvt., Ltd., Ernst & Young Tower, B-26, Qutab, Institutional Area, New Delhi 110 016 Escon Tech 611, Milstone Building, Drive In Road, Nr. Drive In Cinema, Ahmedabad 380054 Ph No. : 079-27495745 Fax No. 079-25454945 E-mail : rkescon@yahoo.com ESCO Electronics Pvt. Ltd. 1030 A, 20th Main, 5th Block, Rajajinagar, Bangalore - 560010 Ph : 91 - 80 - 23352485, Fax.91-80-23352488 email : escoelc@vsnl.net escoelec@yahoo.com
Process, Textiles, Engineering, Vegetable Oils, Ceramics,Cement, Food Products and Consumer Goods, PlasticsPaper Chemicals
I) Iron & Steel ii) Non-ferrous iii) Mining iv) Power v) Energy vi) Refinery Chemical, Fertilizers,Cement, Process, Distillery, Glass, Ceramics, Polyester Film, Steel, Building, Water Utility (Municipal Development Authority), Refractories
Electrical & Thermal
1) Utility Distribution System 2) Forging & Auto ancillaries 3) Sugar Mills 4) General Industries & Software park 5) Building Complexes, Hotels ,hospitals and large buildings. (Govt buildings). (i) Iron & steel (ii) Textiles (iii) Synthetics & chemicals (iv) Captive Power Plant (v) Heavy Engg. Industries (vi) Commercial Buildings (vii) Food Products (viii) Mining (ix) Distillery (x) Sugar. (xi) Refractory (xii) Auto Mobiles (xiii) Glass Industries Pharmaceutical, Petroleum and petrochemicals, Battery, Power Plant, Foundry, Sugar, Cement, Iron and steel, Power generation and distribution, Tobacco, Electroplating, Municipal water pumping and street lighting. Thermal Power Plants Milk Plants Textile Industries Auto & Paint Industries
Energy Audit Services 1116, Sector, - 17, Faridabad 121002. Tel: (0129)-2282132, 2284125 Mobile: 9811229516, 9811627972. Fax: (0129) 2262576 E- mail: <sinhaeas@ndb.vsnl.net.in>
Energy Economy & Environmental Consultants 506, 15th Cross, Indiranagar 2nd Stage, Bangalore-560038 Tel: (080) 25213986-89 Fax: 91-80-25259172 e-m: eeec@vsnl.com Energo Engineering Projects Pvt. Ltd. A-57/4, Okhla Industrial Area, PhaseII, New Delhi 110 020

Tel : 91-11-2638 5323 / 28 / 29 / 38 Fax : 91-11-2638 5333 E-Mail : energo@del3.vsnl.net.in Elpro Energy Dimensions Pvt Ltd 6,7,8 Dr. Rajkumar Road, Rajajinagar IV N Block, Rajajinagar Entrance, Bangalore - 560 010 Ph:08023123238,23122676 Fax:080-23487396 Email:support@ecoenergycentre.com Electrical Research And Development Association ERDA Road, Makarpura Industrial Estate Vadodara-390 010, Gujarat Ph: 2642 942/2642 964/2642 377/2642 557 Fax: 0265-2638 382 E-mail: erda@erda.org Website: http//www.erda.org Energetic Consulting Pvt. Ltd. (Earlier Concept Consultants) 3, Vishwagiri, Vishnunagar, Baji Prabhu Deshpande Rd, Naupada, Thane (W) 400 602 Telephone : +91 22 2544 7011 Telefax : +91 22 2537 0444 email : rucc@vsnl.net DSCL Energy Services Company Ltd, II Floor, Kanchenjunga, 18, Barakhambha Road, New Delhi 110 001 Tel: 0091 11 23316801 Fax: 0091 11 23319062 e-mail:dscpower@vsnl.com M/s Dinesh Rathi & Associates, 6, Tatya Tope Nagar, West High Court Road, Nagpur - 440 015 [M.S.] Ph. : 0712-2225566, 2241911/21-22, Fax : 0712-2241912, mail : drathi_ngp@sancharnet.in; drangp_ngp@sancharnet.in : dranagpur@yahoo.co.in Descon Limited, Centre for Excellence Block - EP, Plot - X1,2 & 3, Sector - V, Salt Lake City, Kolkata - 700091, Ph No -033 - 23577015, 23574308 10, Fax No. -033 23573578, E - mail - info@desconsoft.com Devki Energy Consultancy Pvt. Ltd. 405, Ivory Terrace, R.C. Dutt Road, Vadodara-390007 Tel: 0265-2354813/2330636
Breweries Cement Plants
Electrical Distribution, Compressors, Air Conditioners, Colony/Municipality Street Lighting
Aluminium Fertilizer Iron & Steel Pulp & Paper Chloro-Alkali Textile Chemicals Petrochemicals Gas Cracker Thermal Power Stations Commercial Buildings
Soaps, Textile, Commercial Building, Pharma, Chemical, Cement, Food, Automobile
Paper, Sugar, Tea,Cement,Textile,Chemical,Distelleries, Glass,Dairy, steel, rice mills, Automobiles, edible oil, food processing, engineering, hospitals and Commercial Buildings
1] Cement, 2] Alluminium, 3] Iron & Steel, 4] Chemical, 5] Water, 6] Foods, 7] Textile & 8] Municipal Street Lighting etc
1. Thermal 2. Electrical Utility 3. Iron & Steel 4. Cement
1. 2. 3. 4.
Engineering Foundry Chemicals, Petrochemicals Pharmaceuticals
List of Energy Auditors Fax: 0265-2354813 Email: devkienergy@sify.com 5. Textiles 6. Dairy 7. Paper 8. Plastics 9. Rubber 10) Commercial Buildings Thermal Power Plant, Pulp and Paper, Sugar, Steel, Transport, Rubber, Chemicals, Cement, Textile, BOPP, Engineering, Food Processing, Chlor Alkali, Wire Drawing, Starch, Pharmaseuticals, Fertiliser, Hotels, Hospitals, Rice Mills, Institutes, Commercial Buildings, Aluminium, Dairy Chemical & Petrochemical, Fertilizer, Cement, Tyre, Sugar, Pulp & Paper, Automobile, Textile & Textile Processing, Foundry, Ministeel, Engineering, Ceramic, Synthetic Fibres, Hotels & Commercial Buildings, Food, power plants, Metals, etc
Conzerv Systems Pvt Ltd 44 P Electronic City, Phase II, Hosur Road Bangalore 560 100 Phone:- +91 80 5118 9700 Fax:- +91 80 5118 9729 email:- contact@conzerv.com
Central Electricity Authority Conservation and Environment Division Room No 315, Sewa Bhawan R.K.Puram, New Delhi-66 Central Power Research Institute, Energy Research Centre, P.B.No. 3506, Sreekariyam, Thiruvananthapuram - 695 017, Ph No. 0471-2596004,2599687, cprit@vsnl.net Centre of Energy Studies and Research Devi Ahilya University Khandwa Road Campus Indore 452 017 Phone: 0731-2462366 Telefax: 0731-2467378 Central Pulp & Paper Research Institute, Post Box No. 174, Paper Mill Road, Himmat Nagar, Saharanpur 247 001 Tel. No. (0132) 2725317, 2722756, Fax No. 0132 2727387, 2721367, E-mail:- rmm_cppri@rediffmail.com Central Fuel Research Institute PO FRI,Dhanbad , Jahrkhand -828 108 Tel No. 0326-2381001-10 Fax:- 0.326-2381113 E-Mail:-dnb_dcfri@sancharnet.in Academy for Conservation of Energy 820, Siddharth Complex, R C. Dutt Road, Alkapuri, Baroda. Ph No. (91)(265) 2325024 , Fax. No(91)(265)2325034 Email : info@syguruace.com &
Coal Based Thermal Power Stations
Power Stations (Coal, Hydro, Oil and Atomic), Port Trust, Process Industries, Building & Establishments
Fertiliser, Iron & Steel, Cement, Pulp & Paper, Chloral kali, Textile, Chemicals, Commercial Buildings, Cold Storages
Pulp and Paper Sector
Transport Sector , Mining Sector, Dairy /Food Sector , Power Sector ,Iron & Steel, Textile Sector 1.) Chlor Alkalis ( GACL) 2.) Cement ( Gujarat Siddhi Cement) 3.) Petrochemicals ( IOCL) 4.) Chemicals & Pharmaceuticals ( BASF, Alembic, RPG Life Science, Wockhardt, Rubamin ) 5.) Food Processing ( Vadilal Ltd. Sharaf Food , Charotar Animal Feed)
sii2k@rediffmail.com
6.) Engineering (Steelage, Spaco carburetors Ltd., Gujarat Mahendra Tractors ) 7.) Steel Casting ( Manglam Alloy Ltd., Rajhans metals) 8.) Textile ( Kiran Industries Ltd., Niranjan Mills, Marudhar Spg. Mills)
Central Pulp & Paper Research Institute, Post Box No. 174, Paper Mill Road, Himmat Nagar, Saharanpur 247 001 (UP) Tel. No. (0132) 2725317, 2722756, Fax No. 0132 2727387, 2721367, E-mail:- rmm_cppri@rediffmail.com Central Technical Center, Aditya Birla Management Corporation Limited , ARIES House , Old Padra Road, Vadodara - 390007 Phone No. : 0265 - 2323546 / 2323561 Fax No. : 0265 - 2323521 E mail : ctcbaroda@adityabirla.com Central Scientific Instruments Organisation CSIR Madras Complex Taramani P.O. Chennai, Tamil Nadu - 600 113 Tel - 044 2541061 Fax - 044 2541026 Email: csiom@vsnl.com BICON Consultants Pvt. Ltd., 59/A, Puddapukur Road, Kolkata - 700 020. Phone: 033 2485 2293, Fax: 033 2859 0079 E-mail: bicon@vsnl.net Balmer Lawrie & Co. Ltd. 21, Netaji Subhas Road, Kolkata 700001 Telephone : (033) 22225620 Fax : (033)22105585, 22105662 Email venkataraman.r@balmerlawire.com Bharat Sanchar Nigam Limited. O/o Sr. DDG (Electrical), 10th Floor, Chanderlok Bldg., 36 Janpath, New Delhi - 110001. Avant-Garde Engineers and Consultants (P) Ltd., 68A, Porur Kundrathur High Road,Porur, Chennai - 600 116
Pulp and Paper Sector
Fertilizer, Cement,Chlor Alkali,Textile, Chemicals, Fiber & Insulator, NonFerrous Metals, Diesel Generators, Thermal Power Plants, Gas Turbine Generators.
Textile, Film Processing , Hospital
1. Automobile Industry, 2. Chemical, 3. Engineering. 4. Commercial Buildings, 5. Iron & Steel-Foundry, 6. Metallurgy, 7. Hospitals, 8. Rubber Beltings
Chemical, Engineering, Thermal, Power Plants, Steel Plants, Paper Mills, Breweries, Food Processing, Sugar Factories, Refineries, Tobacco, Tea, Jute Mills etc
Telephone Exchasnges, Administrative Buildings, Telecom Factories, Traning Centres etc.
Captive Power Plant, Biomass Power Plant, Cogeneration Plant, Sugar Plant'Iron & Steel
List of Energy Auditors Tel: 044-24828717- 23 Fax:044-24828531 E-mail:avantgarde@vsnl.com Textile Industry Paper & Straw Boards Industry Cement Industry Chemicals & Pharma Industry Sugar Industry Glass Industry Food & Dairy Industry Tobacco Industry Metallurgical Industry Engineering Industry Rubber & Leather Industry Polymers / PVC/ Plastic Industry Hotels & Hospitals
APITCO Ltd. 8th Floor, Parisrama Bhavanam, Basheerbagh, Hyderabad-500004 Email: hyd1_Apitco@sancharnet.in; Ph: +91-4023237333,23237981,23243611 web: www.apitco.org
Andhra Pradesh Productivity Council "Productivity House" Plot No.87 Road No.2, Banjara Hiills Hyderabad 500 033 Tel: 040-23545102 /23545103 & 23545232 Tel.Fax:040-23542827 E-Mail: appchyd@yahoo.co.in
Paper, Cement, Pharmaceuticals, Fertilizers, Glass And Petro Chemicals, Electrical And Thermal Parameters

List of Energy Service Companies

INTESCO Asia Limited 114, Oakland Ulsoor Road Cross Bangalore - 560042 Tel : 080 25583726 Fax : 080 25596036 Email ; info@intescoasia.com SEE-Tech Solutions Pvt. Ltd. 11/5, Letsconserve MIDC Infotech Park Behind Infotech Tower South Ambazari Road Nagpur - 440022. Tel: 0712-2222177 Fax: 0712-2225293 Email: seemil_ngp@sancharnet.in Energo Engineering Projects Pvt. Ltd. A-57/4, Okhla Industrial Area, Phase-II, New Delhi 110 020 Tel : 91-11-2638 5323 / 28 / 29 / 38 Fax : 91-11-2638 5333 E-Mail : energo@del3.vsnl.net.in DSCL Energy Services Company Ltd, II Floor, Kanchenjunga, 18, Barakhambha Road, New Delhi 110 001 Tel: 0091 11 23316801 Fax: 0091 11 23319062 e-mail:dscpower@vsnl.com M/s Rayon Applied Engineers 117/1,Gupta Compound, Pipliapala, A.B.Road Indore-450017 (M.P.) Ph: 0731-2440637 Fax no.-0731-2475281 E-mail- rayon_engg@rediffmail.com Centre of Energy Studies and Research Devi Ahilya University Khandwa Road Campus Indore 452 017 Phone: 0731-2462366 Telefax: 0731-2467378 Conzerv Systems Pvt Ltd 44 P Electronic City, Phase II, Hosur Road Bangalore 560 100 Phone:- +91 80 5118 9700 Fax:- +91 80 5118 9729 Email:- contact@conzerv.com Seperation Engineers Pvt.Ltd. 13/5, Masilamani Colony, Sir P.S.Sivasamy Salai, (Near Vivekanandha College) Palur Kanniappa Street, Mylapore, Chennai-600 004. Phone No:04424991234/24992473/24987637 Fax:044-24992473, Email:-sepl70@hotmail.com Mr. Ishan Palit Managing Director Tv Sddeutschland India Private Limited 321, Solitaire Corporate Park, BLDG. NO. 3, 2nd floor, Chakala, Andheri (E) Mumbai - 400 093 Tel.: 022 - 5692 3415 / 16 Fax: 022-5692 3418 E-mail: tuvbombay@tuvindia.com Website www.tuvindia.com

Financial Mechanism
SBI Project Uptech

SBI extends consultancy services through PROJECT UPTECH for technology upgradation of small-scale industries. The bank's Consultancy Cells are trained for comprehensive techno-managerial studies and the bank offers financial packages as follow-up support for implementation of the upgradation ventures. Management Consultancy Services The Bank's Consultancy Services Cells are established in the Bank's Local Head Offices and offer support to clients by:
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Counseling young entrepreneurs Organizing short-term Entrepreneurial Management Programmes Development and Industrial
Techno economic feasibility reports; project appraisals; short market survey Techno managerial studies of individual firms for enhancing their competitiveness in key areas like marketing, costing and pricing, MIS and corporate delivery systems.
Technology Upgradation As an extension of its Management Consultancy Services and for supporting client's efforts for modernization, the bank has set up an Industrial Technology Group engaged in the following tasks:
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Enhancing technology awareness among industrialists ! Catalyzing a step-up in quality, productivity and cost effectiveness ! Disseminating technological/market information Financial Package To help liquidity in the units undergoing modernization programmes and as an incentive, a special financial package is extended for the Bank's clients.
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Liberalised terms of margin (15-20%) Extension of the Bank's Equity Fund Scheme (EFS : interest-free loan to a maximum of RS 100,000, matching the proprietor's contribution) Holiday period of three years for the EFS loan and eighteen months for the Term Loan Easy repayment, aligned to profit accruals Need based Working capital

Financial Mechanism
Canara Bank
Scheme for Energy Savings for Small & Medium Enterprises (SME) Sector A novel scheme devised for SMEs for acquiring / adopting energy conservation / savings equipments / measures. Purpose : For acquiring / adopting energy conservation / savings equipments / measures by SMEs. Eligibility : (a) (b) (c) (d) (e) Units under Small Scale Sector & Medium Enterprises Cost of energy for the unit should constitute not less than 20% of the total cost of production Unit should possess energy audit report issued by an approved energy Consultant/Auditor. Borrowal A/Cs-ASCC code S1 or S2 during previous review. Current account holders having dealings exclusively with us satisfactorily for a period of last one year.
Loan Amount : Maximum Rs 100 lakhs Margin : 10% of Project Cost Rate of Interest : 1% less than the prevailing rate applicable for loans of similar tenure. Security : Prime- Assets created out of the credit facility. Collateral- NIL up to Rs 5 lakhs. For loans over Rs 5 lakhs as determined by Bank on merits. Repayment : Maximum 5-7 years including moratorium of 6 months Guarantee Cover: For loans up to Rs 25 lakhs Cover under Credit Guarantee Fund for Small Industries of CGFTI would be available. Grants : Bank provides 25% of the cost of Energy Audit / Consultancy charges with a maximum of Rs 25000/- to the first 100 units on a first come first served basis which is in addition to the grant of Rs 25000/- being provided by IREDA(First 100 units)
INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY (IREDA) SCHEMES APPLICABLE IREDA provides loan for Energy Efficiency/Conservation sector under following categories Maximum repayment Rate of Max. Minimum Maximum period Interest(%) Moratorium Promoters IREDA including p.a. (Years) Contribution(%) loan(%) moratorium (Years)
SCHEME
A. PROJECT FINANCING: Energy Conservation /Energy Projects (Including DSM)
11.00
10
30
Upto 70% of total project cost
and Projects implemented 10.00 in ESCO mode
30
B. EQUIPMENT FINANCING: Energy Conservation / Efficiency Systems and Equipments ( including DSM )
11.50
10
20
Upto 80% of total eligible
9.50
20
equipment cost
9.00
20
Maximum Loan Amount : Rs. 80 Lakhs per project under Equipment Financing .

Financial Mechanism
Bank of Baroda
Small Scale Industries and Ancillary Units (SSI Units) A Small Scale Industrial Unit, is one which is engaged in the manufacture, processing or preservation of goods or is a servicing and repair workshop undertaking repairs of machinery used for production, mining or quarrying or custom service unit (except water service units), having investments in plant and machinery (original cost) not exceeding Rs. 1 Crore. Bank of Baroda has special Loans and Advances for the purpose of fixed capital investment and also for working capital requirement. Key Benefits The loans and advances offered by Bank of Baroda for SSI Units can be used for the basic needs of:
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Acquisition of factory, land and construction of building spaces. Purchase of plant and machinery including lab equipment, testing equipment, etc. Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills. Temporary additional assistance for meeting the urgent needs of raw material. Additional monitory assistance for any eligible purpose.
SIDBI Small and Medium Enterprises Fund Objective

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Making available timely and adequate financial resources for the sector at competitive rates i.e. 2% below the PLR of SIDBI i.e. @ 9.5% p.a. Proper and dedicated coverage for "Medium Sector" in India for financial assistance, especially for small scale sector units graduating to the medium scale.
Instruments for assistance
For the present, Term Loans and Bill discounting facility are covered under the Fund. Definition of Medium Sector
A unit having investment in plant and machinery upto Rs.10 crore would be considered as Medium Sector Enterprise. There is no change in the present definition of SSI unit.
Energy Conservation Act
Confederation of Indian Industry - Energy Management Cell
MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS (Legislative Department) New Delhi, the 1st October, 2001/ Asvina 9, 1923 (Saka) The following Act of Parliament received the assent of the President on the 29th September, 2001, and is hereby published for general information:--
THE ENERGY CONSERVATION ACT, 2001 No 52 OF 2001 [29th September 2001] An Act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Fifty second Year of the Republic of India as follows:
CHAPTER I PRELIMINARY
1. (1) This Act may be called the Energy Conservation Act, 2001. (2) It extends to the whole of India except the state of Jammu and Kashmir (3) It shall come into force on such dates as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Short title, extent and commencement
Definitions
2.
In this Act, unless the context otherwise requires: (a) accredited energy auditor means an auditor possessing qualifications specified under clause (p) of sub-section (2) of section 13; (b) Appellate Tribunal means Appellate Tribunal for Energy Conservation established under section 30; (c) building means any structure or erection or part of a structure or erection, after the rules relating to energy conservation building codes have been notified under clause (a) of section 15 of clause (l) of sub-section (2) of section 56, which is having a connected load of 500kW or contract demand of 600 kVA and above and is intended to be used for commercial purposes; (d) Bureau means the Bureau of Energy Efficiency established under subsection (l) of section 3; (e) Chairperson means the Chairperson of the Governing council; (f) designated agency means any agency designated under clause (d) of section 15; (g) designated consumer means any consumer specified under clause (e) of section 14; (h) energy means any form of energy derived from fossil fuels, nuclear substances or materials, hydro-electricity and includes electrical energy or electricity generated from renewable sources of energy or bio-mass connected to the grid; (i) energy audit means the verification, monitoring and analysis of use of energy including submission of technical report containing recommendations for improving energy efficiency with cost benefit analysis and an action plan to reduce energy consumption; (j) energy conservation building codes means the norms and standards of energy consumption expressed in terms of per square meter of the area wherein energy is used and includes the location of the building; (k) energy consumption standards means the norms for process and energy consumption standards specified under clause (a) of section 14; (l) Energy Management Centre means the Energy Management Centre set up under the Resolution of the Government of India in the erstwhile Ministry of Energy, Department of Power No. 7(2)/87-EP (Vol. IV), dated the 5 th July, 1989 and registered under the Societies Registration Act, 1860; (m) energy manager means any individual possessing the qualifications prescribed under clause (m) of section 14; (n) Governing Council means the Governing Council referred to in section 4; (o) member means the member of the Governing Council and includes the Chairperson; (p) notification means a notification in the Gazette of India or, as the case may be, the Official Gazette of a State; (q) prescribed means prescribed by rules made under this Act; (r) regulations means regulations made by the Bureau under this Act; (s) schedule means the Schedule of this Act; (t) State Commission means the State Electricity Regulatory Commission established under sub-section (l) of section 17 of the Electricity Regulatory Commissions Act, 1998;
14 of 1998
21 of 1860
9 of 1940 54 of 1948 14 of 1998
(u) words and expression used and not defined in this Act but defined in the Indian Electricity Act, 1910 or the Electricity (Supply) Act, 1948 or the Electricity Regulatory Commissions Act, 1998 shall have meanings respectively assigned to them in those Acts.
CHAPTER II BUREAU OF ENERGY EFFICIENCY

3. (1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, a Bureau to be called the Bureau of Energy Efficiency (2) The Bureau shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued. (3) The head office of the Bureau shall be at Delhi. (4) The Bureau may establish offices at other places in India. 4. (1) The general superintendence, direction and management of the affairs of the Bureau shall vest in the Governing Council which shall consists of not less than twenty, but not exceeding twenty-six members to be appointed by the Central Government. (2) The Governing Council shall consist of the following members, namely:(a) the Minister in charge of the Ministry or Department ex officio of the Central Government dealing with the Power Chairperson; (b) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Power (c) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Petroleum and Natural Gas (d) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Coal (e) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Non-conventional Energy Sources (f) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Atomic Energy (g) the Secretary to the Government of India, in charge of the Ministry or Department of the Central Government dealing with the Consumer Affairs
54 of 1948 Management of Bureau Establishment and incorporation of Bureau of Energy Efficiency
ex officio member;
ex officio member;
ex officio member;
ex officio member;
ex officio member;
ex officio member;
(h) Chairman of the Central Electricity Authority established under the Electricity (Supply) Act, 1948 (i) Director-General of the Central Power Research Institute registered under the Karnataka Societies Act, 1960
ex officio member; ex officio member;
Karnataka Act 17 of 1960
XXI of 1860
(j) Executive Director of the Petroleum Conservation ex officio member; Research Association, a society registered under the Societies Registration Act, 1860 (k) Chairman-cum-Managing Director of the Central ex officio member; Mine Planning and Design Institute Limited, a company incorporated under the Companies Act, 1956
1 of 1956
(l) Director-General of the Bureau of Indian Standards ex officio member; established under the Bureau of Indian Standards Act, 1986 (m) Director-General of the National Test House, ex officio member; Department of Supply, Ministry of Commerce and Industry, Kolkata (n) Managing Director of the Indian Renewable Energy ex officio member; Development Agency Limited, a company incorporated under the Companies act, 1956 (o) one member each from five power regions members; representing the States of the region to be appointed by the Central Government (p) such number of persons, not exceeding four as may be members; prescribed, to be appointed by the Central Government as members from amongst persons who are in the opinion of the Central Government capable of representing industry, equipment and appliance manufacturers, architects and consumers (q) such number of persons, not exceeding two as may be members; nominated by the Governing Council as members ex officio member secretary; (3) The Governing Council may exercise all powers and do all acts and things which may be exercised or done by the Bureau. (4) Every member referred to in clause (o), (p) and (q) of sub-section (2) shall hold office for a term of three years from the date on which he enters upon his office. (5) The fee and allowances to be paid to the members referred to in clauses (o), (p) and (q) of sub-section (2) and the manner of filling up of vacancies and the procedure to be followed in the discharge of their functions shall be such as may be prescribed.
Meetings of Governing Council Meetings of Governing Council
63 of 1986
1 of 1956
(r) Director-General of Bureau
5.
(1) The Governing Council shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of business as its meetings (including quorum of such meetings) as may be provided by regulations. (2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Governing Council, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Governing Council shall be decided by a majority vote of the members present and voting, and in the event of an equality of votes, the Chairperson or his absence, the person presiding, shall have second or casting vote.
Vacancies etc., not to invalidate proceedings of Bureau, Governing Council or Committee
6.
No act or proceeding of the Bureau or the Governing Council or any Committee shall be invalid merely by reason of (a) any vacancy in, or any defect in the constitution of, the Bureau or the Governing Council or the Committee; or (b) any defect in the appointment of a person acting as a Director -General or Secretary of the Bureau or a member of the Governing Council or the Committee; or (c) any irregularity in the procedure of the Bureau or the Governing Council or the Committee not affecting the merits of the case.
Removal of member from office
7.
The Central Government shall remove a member referred to in clause (o), (p) and (q) of sub-section (2) of section 4 from office if he (a) is, or at any time has been, adjudicated as insolvent;
(b) is of unsound mind and stands so declared by a competent court;
(c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; (d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter. 8. (1) Subject to any regulations made in this behalf, the Bureau shall, within six months from the date of commencement of this Act, constitute Advisory Committees for the efficient discharge of its functions. (2) Each Advisory Committee shall consist of a Chairperson and such other members as may be determined by regulations. (3) Without prejudice to the powers contained in sub-section (1), the Bureau may constitute, such number of technical committees of experts for the formulation of energy consumption standards or norms in respect of equipment or processes, as it considers necessary. 9. (1) The Central Government shall, by notification, appoint a Director -General from amongst persons of ability and standing, having adequate knowledge and experience in dealing with the matters relating to energy production, supply and energy management standarisation and efficient use of energy and its conservation (2) The Central Government shall, by notification appoint any person not below the rank of Deputy Secretary to the Government of India as Secretary of the Bureau (3) The Director-General shall hold office for a term of three years from the date on which he enters upon his office or until he attains the age of sixty years, whichever is earlier (4) The salary and allowances payable to the Director-General and other terms and conditions of his service and other terms and conditions of service of the Secretary of the Bureau shall be such as may be prescribed (5) Subject to general superintendence, direction and management of the affairs by the Governing Council, the Director-General of the Bureau shall be the Chief Executive Authority of the Bureau (6) The Director-General of the Bureau shall exercise and discharge such powers and duties of the Bureau as may be determined by regulations 10. (1) The Central Government may appoint such other officers and employees in the Bureau as it considers necessary for the efficient discharge of its functions under this Act. (2) The terms and conditions of service of officers and other employees of the Bureau appointed under sub-section (1) shall be such as may be prescribed. 11. All orders and decisions of the Bureau shall be authenticated by the signature of the Director-General or any other officer of the Bureau authorised by the Director-General in this behalf.
Authentication of orders and decisions of Bureau Officers and employees of Bureau Director-General of Bureau Constitution of Advisory Committees and other committees
CHAPTER III TRANSFER OF ASSETS, LIABILITIES ETC, OF ENERGY MANAGEMENT CENTRE TO BUREAU
12. (1) On and from the date of establishment of the Bureau (a) any reference to the Energy Management Centre in any law other than this Act or in any contract or other instrument shall be deemed as a reference to the Bureau; (b) all properties and assets, movable and immovable of, or belonging to, the Energy Management Centre shall vest in the Bureau; (c) all the rights and liabilities of the Energy Management Centre shall be transferred to, and be the right and liabilities of, the Bureau;
Transfer of assets, liabilities and employees of Energy Management Centre
(d) without prejudice to the provisions of clause (c), all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Energy Management Centre immediately before that date for or in connection with the purposes of the said Centre shall be deemed to have been incurred, entered into, or engaged to be done by, with or for, the Bureau; (e) all sums of money due to the Energy Management Centre immediately before that date shall be deemed to be due to the Bureau; (f) all suits and other legal proceedings instituted or which could have been instituted by or against the Energy Management C entre immediately before that date may be continued or may be instituted by or against the Bureau; and (g) every employee holding any office under the Energy Management Centre immediately before that date shall hold his office in the Bureau by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, reti rement or other terminal benefits as he would have held such office if the Bureau had not been established and shall continue to do so as an employee of the Bureau or until the expiry of six months from the date if such employee opts not to be the employee of the Bureau within such period. (2) Not withstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for the time being in force, the absorption of any employees by the Bureau in its regular service under this section s hall not entitle such employees to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority.
14 of 1947
CHAPTER IV POWERS AND FUNCTIONS OF BUREAU

Powers and functions of Bureau
13. (1) The Bureau shall, effectively co-ordinate with designated consumers, designated agencies and other agencies, recognise and utilise the existing resources and infrastructure, in performing the functions assigned to it by or under this Act (2) The Bureau may perform such functions and exercise such powers as may be assigned to it by or under this Act and in particular, such functions and powers include the function and power to (a) recommend to the Central Government the norms for pro cesses and energy consumption standards required to be notified under clause (a) of section 14 ; (b) recommend to the Central Government the particulars required tobe displayed on label on equipment or on appliances and manner of their display under clause (d) of section 14; (c) recommend to the Central Government for notifying any user or class of users of energy as a designated consumer under clause (e) of section 14; (d) take suitable steps to prescribe guidelines for energy conservation building codes under clause (p) of section 14; (e) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (f) arrange and organize training of personnel and specialists in the techniques for efficient use of energy and its conservation; (g) strengthen consultancy services in the field of energy conservation; (h) promote research and development in the field of energy conservation; (i) develop testing and certification procedure and promote testing facilities for certification and testing for energy consumption of equipment and appliances; (j) formulate and facilitate implementation of pilot projects and demonstration projects for promotion of efficient use of energy and its conservation; (k) promote use of energy efficient processes, equipment, devices and systems; (l) promote innovative financing of energy efficiency projects;
(m) give financial assistance to institutions for promoting efficient use of energy and its conservation; (n) levy fee, as may be determined by regulations, for services provided for promoting efficient use of energy and its conservation; (o) maintain a list of accredited energy auditors as may be specified by regulations; (p) specify, by regulations, qualifications for the accredited energy auditors; (q) specify, by regulations, the manner and intervals of time in which the energy audit shall be conducted ; (r) specify, by regulations, certification procedures for energy managers to be designated or appointed by designated consumers; (s) prepare educational curriculum on efficient use of energy and its conservation for educational institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such curriculum in their syllabus; (t) implement internat ional co-operation programmes relating to efficient use of energy and its conservation as may be assigned to it by the Central Government; (u) perform such other functions as may be prescribed.
CHAPTER V POWER OF CENTRAL GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION
14. The Central Government may, by notification, in consultation with the Bureau, (a) specify the norms for processes and energy consumption standards for any equipment, appliances which consumes, generates, transmits or supplies energy; (b) specify equipment or appliance or class of equipments or appliances, as the case may be, for the purposes of this Act; (c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under clause (b) unless such equipment or appliances conforms to energy consumption standards; Provided that no notification prohibiting manufacture or sale or purchase or import or equipment or appliance shall be issued within two years from the date of notification issued under clause (a) of this section; (d) direct display of such particulars on label on equipment or on appliance specified under clause (b) and in such manner as may be specified by regulations; (e) specify, having regarding to the intensity or quantity of energy consumed and the amount of investment required for switching over to energy efficient equipments and capacity or industry to invest in it and availability of the energy efficient machinery and equipment required by the industry, any user or class of users of energy as a designated consumer for the purposes of this Act; (f) alter the list of Energy Intensive Industries specified in the Schedule; (g) establish and prescribe such energy consumption norms and standards for designated consumers as it may consider necessary: Provided that the Central Government may prescribe different norms and standards for different designated consumers having regard to such factors as may be prescribed; (h) direct, having regard to quantity of energy consumed or the norms and standards of energy consumption specified under clause (a) the energy intensive industries specified in the Schedule to get energy audit conducted by an accredited energy auditor in such manner and intervals of time as may be specified by regulations;
Power of Central Government to enforce efficient use of energy and its conservation
(i) direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get energy audit conducted by an accredited energy auditor;
(j) specify the matters to be included for the purposes of inspection under sub-section (2) of section 17; (k) direct any designated consumer to furnish to the designated agency, in such form and manner and within such period, as may be prescribed, the information with regard to the energy consumed and action taken on the recommendation of the accredited energy auditor; (l) direct any designated consumer to designate or appoint energy manger in charge of activities for efficient use of energy and its conservation and submit a report, in the form and manner as may be prescribed, on the status of energy consumption at the end of the every financial year to designated agency; (m) prescribe minimum qualification for energy managers to be designated or appointed under clause (l); (n) direct every designated consumer to comply with energy consumption norms and standards; (o) direct any designated consumer, who does not fulfil the energy consumption norms and standards prescribed under clause (g), to prepare a scheme for efficient use of energy and its conservation and implement such scheme keeping in view of the economic viability of the investment in such form and manner a s may be prescribed; (p) prescribe energy conservation building codes for efficient use of energy and its conservation in the building or building complex; (q) amend the energy conservation building codes to suit the regional and local climatic conditions; (r) direct every owner or occupier of the building or building complex, being a designated consumer to comply with the provisions of energy conservation building codes for efficient use of energy and its conservation; (s) direct, any designated consumer referred to in clause (r), if considered necessary, for efficient use of energy and its conservation in his building to get energy audit conducted in respect of such building by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; (t) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (u) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; (v) take steps to encourage preferential treatment for use of energy efficient equipment or appliances: Provided that the powers under clauses (p) and (s) shall be exercised in consultation with the concerned State.
CHAPTER VI POWER OF STATE GOVERNMENT TO FACILITATE AND ENFORCE EFFICIENT USE OF ENERGY AND ITS CONSERVATION
Power of State Government to enforce certain provisions for efficient use of energy and its conservation
15. The State Government may, by notification, in consultation with the Bureau (a) amend the energy conservation building codes to suit the regional and local climatic conditions and may, by rules made by it, specify and notify energy conservation building codes with respect to use of energy in the buildings;
(b) direct every owner or occupier of a building or building complex being a designated consumer to comply with the provisions of the energy conservation building codes; (c) direct, if considered necessary for efficient use of energy and its conservation, any designated consumer referred to in clause (b) to get energy audit conducted by an accredited energy auditor in such manner and at such intervals of time as may be specified by regulations; (d) designate any agency as designated agency to coordinate, regulate and enforce provisions of this Act within the State; (e) take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; (f) arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; (g) take steps to encourage preferential treatment for use of energy efficient equipment or appliances; (h) direct, any designated consumer to furnish to the designated agency, in such form and manner and within such period as may be specified by rules made by it, information with regard to the energy consumed by such consumer; (i) specify the matters to be included for the purposes of inspection under sub-section (2) of section 17; 16. (1) The State Government shall constitute a Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of energy and its conservation within the State. (2) To the Fund shall be credited all grants and loans that may be made by the State Government or, Central Government or any other organization or individual for the purposes of this Act. (3) The Fund shall be applied for meeting the expenses incurred for implementing the provisions of this Act. (4) The Fund created under sub-section (l) shall be administered by such persons or any authority and in such manner as may be spe cified in the rules made by the State Government. 17. (1) The designated agency may appoint, after the expiry of five years from the date of commencement of this Act, as many inspecting officers as may be necessary for the purpose of ensuring compliance with energy consumption standard specified under clause (a) of section 14 or ensure display of particulars on label on equipment or appliances specified under clause (b) of section 14 or for the purpose of performing such other functions as may be assigned to them. (2) Subject to any rules made under this Act, an inspecting officer shall have power to (a) inspect any operation carried on or in connection with the equipment or appliance specified under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14 have been specified; (b) enter any place of designated consumer at which the energy is used for any activity and may require any proprietor, employee, director, manager or secretary or any other person who may be attending in any manner to or helping in, carrying on any activity with the help of energy (i) to afford him necessary facility to inspect (A) any equipment or appliance as he may require and which may be available at such place; (B) any production process to ascertain the energy consumption norms and standards;
Power of inspection Establishment of Fund by State Government
(ii) to make an inventory of stock of any equipment or appliance checked or verified by him; (iii) to record the statement of any person which may be useful for, or relevant to, for efficient use of energy and its conservation under this Act. (3) An inspecting officer may enter any place of designated consumer (a) where any activity with the help of energy is carried on; and (b) where any equipment or appliance notified under clause (b) of section 14 has been kept, during the hours at which such places is open for production or conduct of business connected therewith. (4) An inspecting officer acting under this section shall, on no account, remove or cause to be removed from the place wherein he has entered, any equipment or appliance or books of accounts or other documents.
Power of Central Government or State Government to issue directions
18. The Central Government or the State Government may, in the exercise of its powers and performance of its functions under this Act and for efficient use of energy and its conservation, issue such directions in writing as it deems fit for the purposes of thi s Act to any person, officer, authority or any designated consumer and such person, officer or authority or any designated consumer shall be bound to comply with such directions. Explanation For the avoidance of doubts, it is hereby declared that the power to issue directions under this section includes the power to direct (a) regulation of norms for process and energy consumption standards in any industry or building or building complex; or (b) regulation of the energy consumption standards for equipment and appliances.
CHAPTER VII FINANCE, ACCOUNT S AND AUDIT OF BUREAU

Grants and loans by Central Government Establishment of Fund by Central Government
19. The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Bureau or to the State Government grants and loans of such sums or money as the Central Government may consider necessary. 20. (1) There shall be constituted a Fund to be called as the Central Energy Conservation Fund and there shall be credited thereto (a) any grants and loans made to the Bureau by the Central Government under section 19; (b) all fees received by the Bureau under this Act; (c) all sums received by the Bureau from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting (a) the salary, allowances and other remuneration of Director -General, Secretary officers and other employees of the Bureau, (b) expenses of the Bureau in the discharge of its functions under section 13; (c) fee and allowances to be paid to the members of the Governing Council under subsection (5) or section 4; (d) expenses on objects and for purposes authorised by this Act
Borrowing powers of Bureau
21. (1) The Bureau may, with the consent of the Central Government or in accordance with the terms of any general or special authority given to it by the Central Government borrow money from any source as it may deem fit for discharging all or any of its functions under this Act. (2) The Central Government may guarantee, in such manner as it thinks fit, the repayment of the principle and the payment of interest thereon with respect to the loans borrowed by the Bureau under sub-section (l).
22. The Bureau shall prepare, in such form and at such time in each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Bureau and forward the same to the Central Government. 23. The Bureau shall prepare, in such form and at such time in each financial year as may be prescribed, its annual report, giving full account of its activities during the previous financial year, and submit a copy thereof to the Central Government. 24. The Central Government shall cause the annual report referred to in section 23 to be laid, as soon as may be after it is received, before each House of Parliament. 25. (1) The Bureau shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor -General of India. (2) The accounts of the Bureau shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Bureau to the Comptroller and Auditor-General. (3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Bureau shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Bureau. (4) The accounts of the Bureau as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall forward annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Budget
677
Annual report
Annual report tobe laid before Parliament Accounts and Audit
CHAPTER VIII PENALTIES AND ADJUDICATION

26. (1) If any person fails to comply with the provision of clause (c) or the clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed ten thousand rupees for each such failures and, in the case of continuing failures, with an additional penalty which may extend t o one thousand rupees for every day during which such failures continues: Provided that no person shall be liable to pay penalty within five years from the date of commencement of this Act. (2) Any amount payable under this section, if not paid, may be recovered as if it were an arrear of land revenue. 27. (1) For the purpose of adjudging section 26, the State Commission shall appoint any of its members to be an adjudicating officer for holding an inquiry in such manner as may be prescribed by the Central Government, after giving any person concerned a reasonable opportunity of being heard for the purpose of imposing any penalty. (2) While holding an inquiry the adjudicating officer shal l have power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case of give evidence or produce any document which in the opinion of the adjudicating officer, may be useful for or relevant to the subject-matter of the inquiry, and if, on such inquiry, he is satisfied that the person has failed to comply with the provisions of any of the clauses of the sections specified in section 26, he may impose such penalty as he thinks fit in accordance with the provi sions of any of those clauses of that section:
Power to adjudicate Penalty
Provided that where a State Commission has not been established in a State, the Government of that State shall appoint any of its officer not below the rank equivalent to a Secretary dealing with legal affairs in that State to be an adjudicating officer for the purposes of this section and such officer shall cease to be an adjudicating officer immediately on the appointment of an adjudicating officer by the State Commission on its establishment in that State: Provided further that where an adjudicating officer appointed by a State Government ceased to be an adjudicating officer, he shall transfer to the adjudicating officer appointed by the State Commission all matters being adjudicated by him and thereafter the adjudicating officer appointed by the State Commission shall adjudicate the penalties on such matters.
Factors to be taken into account by adjudicating officer
28. While adjudicating the quantum of penalty under section 26, the adjudicating officer shall have due regard to the following factors, namely:(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; (b) the repetitive nature of the default.
Civil court not to have jurisdiction
29. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.
CHAPTER IX APPELLATE TRIBUNAL FOR ENERGY CONSERVATION

Establishment of Appellate Tribunal
30. The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Appellate Tribunal for Energy Conservation to hear appeals against the orders of the adjudicating officer or the Central Government or the State Government or any other authority under this Act. 31. (1) Any person aggrieved, by an order made by an adjudicating officer or the Central Government or the State Government or any other authority under this Act, may prefer an appeal to the Appellate Tribunal for Energy Conservation: Provided that any person appealing against the order of the adjudicating officer levying any penalty, shall while filing the appeal, deposit the amount of such penalty: Provided further that where in any particular case, the Appellate Tribunal is of the opinion that the deposit of such penalty would cause undue hardship to such person, the Appellate Tribunal may dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the realisation of penalty. (2) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made by the adjudicating officer or the Central Government or the State Government or any other authority is received by the aggrieved person and it shall be in such form, verified in such manner and be accompanies by such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereo n as it thinks fit, confirming, modifying or setting aside the order appealed against (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned adjudicating officer or the Central Governm ent or the State Government or any other authority.
Appeal to Appellate Tribunal
(5) The appeal filed before the Appellate Tribunal under sub-section (l) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within one hundred and eighty days from the date of receipt of the appeal: Provided that where an appeal could not be disposed of within the said period of one hundred and eighty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality, propriety or correctness of any order made by the adjudicating officer or the Central Government or the State Government or any other authority under this Act, as the case may be in relation to any proceeding, on its own motion or otherwise, call for the records of such proceedings and make such order in the case as it thinks fit. 32. (1) The Appellate Tribunal shall consist of a Chairperson and such number of Members not exceeding four, as the Central Government may deem fit. (2) Subject to the provisions of this Act, (a) the jurisdiction of the Appellate Tribunal maybe exercised by Benches thereof; (b) a Bench may be constituted by the Chairperson of the Appellate Tribunal with two or more Members of the Appellate Tribunal as the Chairperson of the Appellate Tribunal may deem fit: Provided that every Bench constituted under this clause shall include at least one Judicial Member and one Technical Member; (c) The Benches of the Appellate Tribunal shall ordinarily sit a t Delhi and such other places as the Central Government may, in consultation with the Chairperson of the Appellate Tribunal, notify; (d) The Central Government shall notify the areas in relation to which each Bench of the Appellate Tribunal may exercise jurisdiction, (3) Notwithstanding anything contained in sub -section (2), the Chairperson of the Appellate Tribunal may transfer a Member of the Appellate Tribunal from one Bench to another Bench Explanation For the purposes of this Chapter, (i) Judicial Member means a Member of the Appellate Tribunal appointed as such under item (i) or item (ii) or clause (b) of sub-section (1) of section 33, and includes the Chairperson of the Appellate Tribunal; (ii) Technical Member means a Member of the Appellate Tribunal appointed as such under item (iii) or item (iv) or item (v) or item (vi) of clause (b) of sub-section (l) of section 33 33. (1) A person shall not be qualified for appointment as the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal unless he (a) in the case of Chairperson of the Appellate Tribunal, is or has been, a judge of the Supreme Court or the Chief Justice of a High Court; and (b) in the case of a Member of the Appellate Tribunal,(i) is, or has been, or is qualified to be, a Judge of a High Court; or (ii) is, or has been, a Member of the Indian Legal Service and has held a post in Grade I in that service for atleast three years; or (iii) is, or has been, a Secretary for at least one year in Ministry or Department or the Central Government dealing with the Power, or Coal, or Petroleum and Natural Gas, or Atomic Energy; or (iv) is, or has been Chairman of the Central Electricity Autho rity for at least one year; or (v) is, or has been, Director-General of Bureau or Director-General of the Central Power Research Institute or Bureau of Indian Standards for atleast three years or has held any equivalent post for atleast three years; or
679
Composition of Appellate Tribunal
Qualifications for appointment of Chairperson and Members of Appellate Tribunal
(vi) is, or has been, a qualified technical person of ability and standing having adequate knowledge and experience in dealing with the matters relating to energy production and supply, energy management, standardisation and efficient use of energy and its conservation, and has shown capacity in dealing with problems relating to engineering, finance, commerce, economics, law or management
Term of office
34. The Chairperson of the Appellate Tribunal and every Member of the Appellate Tribunal shall hold office as such for a term of five years from the date on which he enters upon his office: Provided that no Chairperson of the Appellate Tribunal or Mem ber of the Appellate Tribunal shall hold office as such after he has attained, (a) in the case of the Chairperson of the Appellate Tribunal, the age of seventy years; (b) in the case of any Member of the Appellate Tribunal, the age of sixty-five years.
Terms and conditions of service
35. The salary and allowances payable to and the other terms and conditions of service of the Chairperson of the Appellate Tribunal, Members of the Appellate Tribunal shall be such as may be prescribed: Provided that neither the salary and allowances nor the other terms and conditions of service of the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall be varied to his disadvantage after appointment.
Vacancies
36. If for reason other than temporary absence any vacancy occurs in the office of the Chairperson of the Appellate Tribunal or the Member of the Appellate Tribunal, the Central Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceedings may be continued before the Appellate Tribunal from the stage at which the vacancy is filled. 37. (1) The Chairperson or a Member of the Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office: Provided that the Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall, unless he is per mitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of term of office, whichever is the earliest. (2) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall not be removed from his office except by an order by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by such persons as the President may appoint for this purpose in which the Chairperson or a Member of the Appellate Tribunal concerned has been informed of the charges against him and given a reasonable opportunity of being heard in respect of such charges.
Registration and removal
38. (1) In the event of the occurrence of vacancy in the office of the Chairperson of the Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most member of the Appellate Tribunal shall act as the Chairperson of the Appellate Tribunal until the date on which a new Chairperson appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office. (2) When the Chairperson of the Appellate Tribunal is unable to discharge his functions owing to his absence, illness or any other cause, the senior most Member of the Appellate Tribunal shall discharge the functions of the Chairperson of the Appellate Tribunal until the date on which the Chairperson of the Appellate Tribunal resumes his duties. 39. (1) The Central Government shall provide the Appellate Tribunal with such officers and employees as it may deem fit. (2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of the Chairperson of the Appellate Tribunal as the case may be. (3) The salaries and allowances and other conditions of service of the officers and employees of the Appellate Tribunal shall be such as may be prescribed. 40. (1) The Appellate Tribunal shall not be bound by the procedure laid down by the Code of civil Procedure, 1908 but shall be guided by the principles of natural justice and subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate it own procedure. (2) The Appellate Tribunal shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in the civil court under the Code of C ivil Procedure 1908, while trying to suit in respect of the following matters, namely:(a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence of affidavits;
1 of 1872
Member to act as Chairperson in certain circumstances
Staff of Appellate Tribunal
5 of 1908
Procedure and powers of Appellate Tribunal
5 of 1908
(d) subject to the provisions of section 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or copy of such record or document from any office (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation of default or deciding it, ex parte; (h) setting aside any order of dismissal or any representation for default or any order passed by it, ex parte; (i) any other matter which may be prescribed by the Central Government. (3) An order made by the Appellate Tribunal under this Act sha ll be executable by the Appellate Tribunal as a decree of civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court. (4) Not withstanding anything contained in sub -section (3), the Appellate Tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by the that court.
45 of 1860
2 of 1974
(5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 345 and 346 of the Code of Criminal Procedure, 1973.
Distribution of business amongst Benches.
41. Where Benches are constituted, the Chairperson of the Appellate Tribunal may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which ma y be dealt with by each Bench. 42. On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench for disposal, to any other Bench. 43. If the Members of the Appellate Tribunal of a Bench consisting of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing on such point or points b y one or more of the other Members of the Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it. 44. (1) A person preferring an appeal to the Appellate Tribunal under this Act may either appear in person or take assistance of a legal practitioner or an accredited energy auditor of his choice to present his case before the Appellate Tribunal, as the case may be.
Power of Chairpersont to transfer cases
Decision to be by majority
Right to appellant to take assistance of legal practitioner or accredited auditor and of Government to appoint presenting officers
Appeal to Supreme Court
(2) The Central Government or the State Government may authorise one or more legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal as the case may be. 45. Any person aggrieved by any decision or order of the Appellate Tribunal may, file an appeal to the Supreme court within sixty days from the date of communication of the decision or order of the Appellate Tribunal to him, on any one or more of the ground specified in section 100 of the Code of Civil Procedure, 1908: Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by the sufficient cause from the filing the appeal within the said period, allow it to be filed within a further period of not exceeding sixty days.
5 of 1908
CHAPTER X MISCELLANEOUS
Power of Central Government to issue directions to Bureau
46. (1) Without prejudice to the foregoing provisions of this Act, the Bureau shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the B ureau shall, as far as practicable, be given an opportunity to express his views before any direction is given under this sub-section. (2) The decision of the Central Government, whether a question is one of policy or not, shall be final. 47. (1) If at any time the Central Government is of opinion (a) that on account of grave emergency, the Bureau is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or
Power of Central Government to supersede Bureau
(b) that the Bureau has persistently made default in complying with any direction issued by the Central Government under this Act or in discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of such default, the financial position of the Bureau had deteriorated or the administration of the Bureau had deteriorated; or (c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification, supersede the Bureau for such period, not exceeding six months, as may be specified in the notification. (2) Upon the publication of a notification under sub-section (1) superseding the Bureau (a) all the members referred to in clauses (o), (p) and (q) of sub-section (2) of section 4 shall, as from the date of supersession, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Bureau, shall until the Bureau is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and (c) all property owned or controlled by the Bureau shall, until the Bureau is reconstituted under sub-section (3), vest in the Central Government. (3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may reconstitute the Bureau by a fresh appointment and in such case any person or persons who vacated their offices under clause (a) of sub-section (2), shall not be deemed disqualified for appointment: Provided that the Central Government may, at any time, before the expiration of the period of supersession, take action under this sub-section (d) the Central Government shall cause a notification issued under sub -section (1) and full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest. 48. (1) Where a company makes a default in complying with the provisions of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, every person who at the time of such contravention was incharge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to have acted in contravention of the said provisions and shall be liable to be proceeded against and imposed penalty under section 26 accordingly: Provided that nothing contained in this sub -section shall render any such person liable for penalty provided in this Act if he proves that the contravention of the aforesaid provisions was committed without his knowledge or that he exercised all due diligence to prevent the contravention of the aforesaid provision. (2) Notwithstanding anything contained in sub -section (l), where any contravention of the provisions of clause (c) or clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15 has been committed with the consent or connivance of, or in attributable to, any neglect on the part of , any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to have contravened the said provisions and shall be liable to be proceeded for imposition of penalty accordingly. Explanation For the purposes of this section, company means a body corporate and includes a firm or other association of individuals.
43 of 1961 Default by companies
49. Notwithstanding anything contained in the Income -tax Act, 1961 or any other enactment for the time being in force relating to tax on income, profits or gains (a) the Bureau; (b) the existing Energy Management Centre from the date of its constitution to the date of establishment of the Bureau,
Exemption from tax on income
shall not be liable to pay any income tax or any tax in respect of their income, profits or gains derived.
Protection of action taken in good faith
50. No suit, prosecution or other legal proceedings shall lie against the Central Government or Director-General or Secretary or State Government or any officer of those Governments or State Commission or its members or any member or officer or other employee of the Bureau for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder. 51. The Bureau may, by general or special order in writing, delegate to any member, member of the committee, officer of the Bureau or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section (58) as it may deem necessary 52. Every designated consumer or manufacturer of equipment or appliances specified under clause (b) of section 14 shall supply the Bureau with such information, and with such samples of any material or substance used in relation to any equipment or appliance, as the Bureau may require. 53. If the Central Government or the Stat e Government is of the opinion that it is necessary or expedient so to do in the public interest, it may, by notification and subject to such conditions as may be specified in the notification, exempt any designated consumer or class of designated consumers from application of all or any of the provisions of this Act: Provided that the Central Government or the State Government, as the case may be, shall not grant exemption to any designated consumer or class of designated consumers for the period exceeding five years: Provided further that the Central Government or State Government, as the case may be shall consult the Bureau of Energy Efficiency before granting such exemption.
Delegation
Power to obtain information
Power to exempt
Chairperson, Members, officers and employees of the Appellate Tribunal, Members of State Commission, DirectorGeneral, Secretary, members, officers and employees to be public servants. Power of Central Government to issue directions. Power of Central Government to make rules.
54. The Chairperson of the Appellate Tribunal or the Members of the Appellate Tribunal or officers or employees of the Appellate Tribunal or the members of the State Commission or the members, Director-General, Secretary, officers and other employees of the Bureau shall be deemed, when acting or purporting to act in pursuance of any of the provisions of the Act, to be public servants within the meaning of section 21 of the Indian Penal Code.
45 0f 1860
55. The Central Government may give directions to a State Gover nment or the Bureau as to carrying out into execution of this Act in the State 56. (1) The Central Government may, by notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:(a) such number of persons to be appointed as members by the Central Government under clauses (o), (p) and (q) of sub-section (2) of section 4; (b) the fee and allowances to be paid to the members under sub-section (5) of section 4; (c) the salary and allowances payable to the Director-General and other terms and conditions of his service and other terms and conditions of service of the Secretary of the Bureau under sub-section (4) of section 9;
(d) the terms and conditions of service of officer and other employees of the Bureau under sub-section (2) of section 10; (e) performing such other functions by the Bureau, as may be prescribed, under clause(u) of sub-section (2) or section 13; (f) the energy consumption norms and standards for designated consumers under clause (g) of section 14; (g) prescribing the different norms and standards for different designated consumers under the proviso to clause (g) of section 14; (h) the form and manner and the time within which information with regard to energy consumed and the action taken on the r ecommendations of the accredited energy auditor be furnished under clause (k) of section 14; (i) the form and manner in which the status of energy consumption be submitted under clause (l) of section 14; (j) the minimum qualification for energy managers under clause (m) of section 14; (k) the form and manner for preparation of scheme and its implementation under clause (o) of section 14; (l) the energy conservation building codes under clause (p) of section 14; (m) the matters relating to inspection under sub -section (2) of section 17; (n) the form in which, and the time at which, the Bureau shall prepare its budget under section 22; (o) the form in which, and the time at which, the Bureau shall prepare its annual report under section 23; (p) the form in which the accounts of the Bureau shall be maintained under section 25; (q) the manner of holding inquiry under sub -section (l) of section 27; (r) the form of and fee for filing such appeal under sub-section (2) of section 31; (s) the salary and allowances payable to and other terms and conditions of service of the Chairperson of the Appellate Tribunal and Member of the Appellate Tribunal under section 35; (t) the salary and allowances and other conditions of service of the officers and other employees of the Appellate Tribunal under sub-section (3) of section 39; (u) the additional matters in respect of which the Appellate Tribunal may exercise the powers of a civil court under clause (i) of sub-section (2) of section 40; (v) any other matters which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be made by rules. 57. (1) The State Government may, by notification, makes rules for carrying out the provisions of this Act and not inconsistent with the rules, if any, made by the Central Government. (2) In particular, and without prej udice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: (a) energy conservation building codes under clause (a) of section 15; (b) the form, the manner and the period within which information with regard to energy consumption shall be furnished under clause (h) of section 15; (c) the person or any authority who shall administer the Fund and the manner in which the Fund shall be administered under sub-section (4) of section 16; (d) the matters to be included for the purposes of inspection under sub-section (2) of section 17 (e) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be made, by rules.
Power of State Government to make rules
Power of Bureau to make regulations
58. (1) The Bureau may, with the previous approval of the Central Government and subject to the condition of previous publication, by notification, make regulations not inconsistent with the provisions of this Act and the rules made thereunder to carry out the pur poses of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:(a) the times and places of the meetings of the Governing Council and the procedure to be followed at such meetings under sub-section (1) of section 5; (b) the members of advisory committees constituted under sub-section (2) of section 8; (c) the powers and duties that maybe exercised and discharged by the Director-General of the Bureau under sub-section (6) of section 9; (d) the levy of fee for services provided for promoting efficient use of energy and its conservation under clause (n) of sub-section (2) of section 13; (e) the list of accredited energy auditors under clause (o) of sub-section (2) of section 13; (f) the qualifications for accredited energy auditors under clause (p) of sub-section (2) of section 13; (g) the manner and the intervals or time in which the energy audit shall be conducted under clause (q) of sub-section (2) of section 13; (h) certification procedure for energy managers under clause (r) of sub-section (2) of section (13); (i) particulars required to be displayed on label and the manner of their display under clause (d) of section 14; (j) the manner and the intervals of time for conduct of energy audit under clause (h) or clause (s) of section 14; (k) the manner and the intervals of time for conducting energy audit by an accredited energy auditor under clause (c) of section 15; (l) any other matter which is required to be, or may be, specified.
Rules and regulations to be laid before Parliament and State Legislature
59. (1) Every rule made by the Central Government and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive session, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation. (2) Every rule made by the State Government shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that House.
Application of other laws not barred.
60. The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
61. The provisions of this Act shall not apply to the Ministry or Department of the Central Government dealing with Defence, Atomic Energy or such other similar Ministries or Departments undertakings or Boards or institutions under the control of such Ministries or Departments as may be notified by the Central Government. 62. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of two years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Provisions of Act not to apply in certain cases
Power to remove difficulty.
THE SCHEDULE [See section 2 (s)]
List of Energy Intensive Industries and other establishments specified as designated consumers
1. 2. 3. 4. 5. 6. 7. 8. 9. Aluminium; Fertilizers; Iron and Steel; Cement; Pulp and paper; Chlor Akali; Sugar; Textile; Chemicals;
10. Railways; 11. Port Trust; 12. Transport Sector (industries and services); 13. Petrochemicals, Gas Crackers, Naphtha Crackers and Petroleum Refineries; 14. Thermal Power Stations, hydel power stations, electricity transmission companies and distribution companies; 15. Commercial buildings or establishments;
SUBHASH C.JAIN, Secy. to the Govt. of India.
MGIP(PLU)MRND 2995GI 19-10-2001
689
References
Confederation of Indian Industry - Energy Management Cell
References
REFERENCES
! Detailed Energy Audit reports
CII Godrej GBC has carried out detailed energy audits in over 550 Industries in India, comprising of various sectors such as cement, paper, sugar, ceramics, engineering, power plants, leather, pharmaceutical, tea, synthetic fibre, etc. The feedback from the audited units indicated a saving of Rs 1,500 million based on the implementation of proposals suggested in the detailed energy audit. The energy consumption details and savings possible in each of these sectors have been compiled from these detailed energy audit reports. ! Energy Efficiency at design stage Manual prepared by CII This unique manual, the first of its kind was developed by CII Godrej GBC under the ADB Energy Efficiency support project. This manual includes all the energy saving aspects that can be incorporated at design stage for achieving energy efficiency. ! Case Study booklets on energy efficiency prepared by CII on Energy Intensive Sectors Six case study booklets in six energy intensive sectors covering actual implemented case studies were brought out under the project. This project involved extensive travel by CII team to over 30 industries to study the energy saving project implemented. ! Seminar material various presentation of energy efficiency in equipment & process ! IDEAS Report prepared by CII for power sector reforms ! Clean Development Mechanism (CDM) handbook prepared by CII

Internet
Data & Statistics Ministry of power - www.powermin.nic.in Central Electricity Authority (CEA), India - www.cea.org CMIE www.cmie.com Indian Statistics www.indiastat.com India info line www.indiainfoline.com Cement Manufacturers Association (CMA) www.cma.com Sugar www.sugaronline.com Paper - www.Kakaz.com Database - www.Eco-web.com SIDI - www.sidbi.com Ministry of Chemicals - www.chemicals.nic.in Chemical Manufacturers Association - www.icmaindia.com Chemical Technology - www.chemicals-technology.com Equipment Suppliers Bharat Heavy Electricals Limited www.bhel.com Thermax www.thermax.com Asea Brown Boveri www.abb.com Siemens - www.siemens.com Suzlon Energy www.suzlon.com Financial Institutions Indian Renewable Energy Development Agency www.iredaltd.com World Bank www.worldbank.org The Energy & Resources Institute www.teriin.org Export import bank of India www.eximbankindia.com Canara bank www.canarabankindia.com Small Industries Development Bank of India www.sidbi.com State Bank of India www.statebankindia.com Bank of Baroda www.bankofbaroda.com USAID www.usaid.gov
Resource person consulted /organisation visited

ICICI Bank Petroleum Conservation Research Association Mr K Murali, Assistant General Manager State Bank of India, Chennai
References
P K Arunachalam, Manager - State Bank of India, Chennai FLSmidth India Limited, Chennai Mr R Prabha, General Manager (Priority Credit Wing), Canara Bank
Visits made
Financial Institutions Canara Bank, Bangalore Indian Renewable Energy Development Agency (IREDA), New Delhi State Bank of India (SBI) Energy Business Division, Chennai Visit to companies Aurobindo Pharma Ltd G S B Forge Ltd. Granules India Ltd Dr. Reddy's Laboratories Ltd. Rane Engine Valves Limited TKH Plastics Pvt Ltd Godrej Agrovet Ltd Hindustan Coca-cola Ltd Nicholas Piramal India Limited N R B Bearings TI Diamond Chain Ltd Priyadarshini Spinning Mills Ltd. GTN Textiles Ltd (Medak Unit) Shantha Biotechnics Pvt. Ltd. Ravi Foods Pvt. Ltd., Tecumseh Products India Ltd. VST Industies Ltd. Dr. Reddy's Laboratories Ltd. - Generics Dr. Reddy's Laboratories Ltd. Eveready Industries ITW Signode Ltd.

Conclusion
Small & Medium Enterprises (SMEs) in India are playing a very major role in the overall development of the countrys economy. SMEs constitute one of the vibrant sectors of the Indian economy in terms of employment generation, the strong entrepreneurial base it helps to create and its share in industrial production and exports. DEFINING SME ? The definition of a Small & Medium Enterprise various widely Small Industries Development Bank of India (SIDBI), a nodal agency for small industries defines Medium sector enterprises as units having investment in plant and machinery upto Rs.10 crore. However, as defined by State Bank of India (SBI), companies having turnover of less than 25 crores per annum is considered as SME. About Investors Manual Under the `India: Second Renewable Energy Project, Indian Renewable Energy Development Agency (IREDA) is operating a World Bank Line of credit (WBLOC) to finance projects in energy efficiency/ conservation sector. As a part of the above project, Technical assistance Plan (TAP) is envisaged for (i) institutional development and technical support to IREDA,(ii) improving the marketing of the energy efficiency and demand-side management investments (iii) Promoting private sector participation in end-use efficiency. As a part of the project, CII Godrej GBC has been assigned the task of Preparation of Investors Manual for Energy Efficiency/ Conservation in Small and Medium Scale Sector for the use of Bankers Objective of this Manual: The objective of this Investors Manual for Energy Efficiency in Small & Medium Enterprises for the use of Bankers is a step in highlighting & bringing in investment opportunities for energy efficiency equipment. This manual covers various topics like energy saving potential for various industries, technologies available to improve energy efficiency, equipment suppliers, government policies / incentives available for the sector, terms of IREDA and other financial institutions extending support to such projects etc. The end objective of the activity is market development for energy efficiency / conservation products & services for SMEs. CII Godrej GBC adopted the following methodology in preparing this manual: 1. Classifying the SME sector/equipment under energy intensive category 2. Identifying different energy intensive SME sectors which are likely to invest in EE technologies
3. Identify available technologies and relate each of them to SME sector application. 4. Identifying energy saving potential for each of the energy intensive industry and list the major energy saving measures, which could be undertaken in each of the industry/equipment 5. Develop model financial structures for energy efficiency investments and its payback 6. A brief technical detail including schematics and cost benefit analysis for each of the proposed energy saving measures. 7. Providing the list of equipment suppliers (both Indian as well as international), EPC contractors, Energy service companies etc. who can take up this energy saving measures 8. Giving the list of consultants / energy auditors etc, who can be approached for conducting energy audit, preparation of DPR etc. 9. A brief detail of government policy / incentives / concessions available etc. for identified energy saving projects / equipments. 10. Giving a brief detail of finance available for taking up energy efficiency projects from IREDA as well as from other financial institutions All the projects are all proven projects, which have been implemented successfully in Indian industry. The objective of highlighting these projects is to facilitate the potential investors & bankers, in having a quick reference of the various energy saving measures and also enable them make decisions on investment. Summary of this report This report focuses on energy conservation methodologies & case studies in 10 major sectors and 8 commonly used equipment in the Indian Small & Medium Enterprises (SMEs) Sectors covered under this manual 1. Leather 2. Cement 3. Pharmaceutical 4. Ceramics 5. Tea 6. Food processing 7. Paper 8. Textile 9. Sugar 10. Foundry

Major equipment covered under this manual 1. 2. 3. 4. 5. 6. 7. 8. Air compressors Centrifugal pumps Centrifugal fans Boilers & steam system Refrigeration & air conditioning system Electrical distribution Electrical motors Lighting
According to estimates, the total energy consumed in the SMEs is in the order of about 8000 MW. The various sectors highlighted in this report offer an annual energy saving potential of about 1000 MW which is equivalent to Rs. 28000 Million This, in turn, creates an investment opportunity of Rs 42000 million, to achieve the projected energy savings. This report will serve the objective of its preparation, in promoting / development of market for energy efficient equipment & suppliers in Indian industry.


CII Sohrabji Godrej Green Business Centre Survey No. 64, Kothaguda Post, Near Kothaguda Cross Road, RR Dist. Hyderabad - 500 032 Tel : 040 - 2311 2971 - 73 Fax : 040 - 2311 2837 Email : gbc@ciionline.org Website : www.greenbusinesscentre.com

Investor Manual For Energy Efficiency Ins Me 9 May 2006

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SMALL AND MEDIUM ENTERPRISES (SMEs) IN INDIA

Confederation of Indian Industry

Energy Saving Opportunities in Various Sectors

Energy Conservation in Leather Industry

Confederation of Indian Industry

Case Study No. 1

Energy Saving Project

Energy Conservation in Leather Industry

Cost benefit analysis

0.234 0.169 0.147 0.147 0.147 0.147 0.147 0.147 0.147

Confederation of Indian Industry

Case Study No. 2

Energy Saving Project

Energy Conservation in Leather Industry

Cost benefit analysis

0.105 0.079 0.071 0.071 0.071 0.071 0.071 0.071 0.071

Confederation of Indian Industry

Case Study No. 3

Energy Saving Project

Energy Conservation in Leather Industry

Cost benefit analysis

Confederation of Indian Industry

Case Study No. 4

Replace Electrical Heating with Steam Heating in Identified Areas

Rs. 3930/ MM Kcal Rs. 623/ MM Kcal

Energy Saving Project

Energy Conservation in Leather Industry

Cost benefit analysis

0.500 0.457 0.442 0.442 0.442 0.442 0.442 0.442 0.442

Confederation of Indian Industry

Case Study No. 5

Reduce Operating Pressure in Auto Spray Section Air Compressor

Energy saving project

Energy Conservation in Leather Industry

Cost benefit analysis

0.182 0.175 0.173 0.173 0.173 0.173 0.173 0.173 0.173

Confederation of Indian Industry

Case Study No. 6

Energy Conservation in Leather Industry

Energy Saving Project

Cost benefit analysis

Confederation of Indian Industry

Energy Conservation in Leather Industry

Case study No. 7

Energy Saving Project

Confederation of Indian Industry

Cost benefit analysis

0.293 0.217 0.192 0.192 0.192 0.192 0.192 0.192 0.192

Energy Conservation in Cement Industry

Confederation of Indian Industry

Case study No. 1

Install High Efficiency Fan for Pre-Heater Fan

Energy Saving Proposal

Energy Conservation in Cement Industry

0.705 0.705 0.705 0.705 0.705 0.705 0.705 0.705

Confederation of Indian Industry

Case study No. 2

Install GRR/Variable Fluid Coupling for ESP Fan

Energy Saving Project

Energy Conservation in Cement Industry

Confederation of Indian Industry