DETAILED PROJECT REPORT ON AUTO LOOM / …

1 DETAILED PROJECT REPORT ON auto LOOM / RAPIER LOOM (4 Nos) ( solapur TEXTILE cluster ) bureau of energy Efficiency Prepared By Reviewed By auto LOOM/RAPIER LOOM (4 Nos.) solapur TEXTILE cluster BEE, 2010 DETAILED PROJECT REPORT on auto Loom/Rapier Loom (4 Nos) Textile SME cluster , solapur , Maharashtra (India) New Delhi: bureau of energy Efficiency; Detail PROJECT REPORT No. SLP/TXT/AL4/12 For more information bureau of energy Efficiency (BEE) (Ministry of Power, Government of India) 4th Floor, Sewa Bhawan R.

2 K. Puram, New Delhi 110066 Telephone +91-11-26179699 Fax +91-11-26178352 Websites: Email: Acknowledgement We are sincerely thankful to the bureau of energy Efficiency, Ministry of Power, for giving us the opportunity to implement the BEE SME PROJECT in solapur Textile cluster , solapur . We express our sincere gratitude to all concerned officials for their support and guidance during the conduct of this exercise. Dr. Ajay Mathur, Director General, BEE Smt. Abha Shukla, Secretary, BEE Shri Jitendra Sood, energy Economist, BEE Shri Pawan Kumar Tiwari, Advisor (SME), BEE Shri Rajeev Yadav, PROJECT Economist, BEE Zenith energy Services Pvt.

3 Ltd.(ZESPL) is also thankful to Shri Murlidhar Arkal, Chairman, Shri Srinivas Bura, Vice President, Shri Jayanth Aken, Secretary, Textile Development Foundation, solapur for their valuable inputs, co-operation, support and identification of the units for energy use and technology audit studies and facilitating the implementation of BEE SME program in solapur Textile cluster . We take this opportunity to express our appreciation for the excellent support provided by Textile Unit Owners, Local Service Providers, and Equipment Suppliers for their active involvement and their valuable inputs in making the program successful and in completion of the DETAILED PROJECT REPORT (DPR).

4 ZESPL is also thankful to all the SME owners, plant in charges and all workers of the SME units for their support during the energy use and technology audit studies and in implementation of the PROJECT objectives. Zenith energy Services Pvt. Ltd. Hyderabad Contents List of Annexure vii List of Tables vii List of Figures viii List of Abbreviation viii Executive summary ix About BEE S SME program x 1 INTRODUCTION.

5 1 About the solapur textile cluster .. 1 energy performance in 4 Specific energy consumption of final product .. 4 Proposed equipment to be upgrade .. 4 Description of existing equipment .. 4 Role in process .. 5 Baseline for existing equipment .. 5 Design and operating parameter .. 5 Production cost per kg of final product .. 5 2 PROPOSED energy EFFICIENT EQUIPMENT .. 7 Detail description of technology .. 7 Description of equipment .. 7 Availability of equipment .. 9 Service/equipment providers.

6 9 Technology/equipment specification .. 10 Justification of technology selected and suitability .. 11 Superiority over existing system .. 11 Life cycle assesment and risk analysis .. 12 Suitable unit for implementation of proposed 12 3 ECONOMIC BENEFITS OF PROPOSED EUIPMENT .. 14 Technical benefits .. 14 Fuel saving .. 14 Electricity saving .. 14 Social benefits .. 15 Improvement in working environment .. 15 Improvement in skill set of workers .. 15 Impact on wages/emoluments.

7 15 Envirinmental benefit .. 15 Reduction in effluent generation .. 15 Reduction in GHG emission such as CO2, NOx, etc .. 15 Reduction in other emissions like Sox .. 15 4 INSTALLATION OF PROPOSED EQUIPMENT .. 16 Cost of equipment implementation .. 16 Cost of equipment .. 16 Other costs .. 16 Arrangement of funds .. 16 Entrepreneur s contribution .. 16 Loan amount .. 16 Terms & conditions of 16 Financial indicators .. 17 Cash flow analysis .. 17 Simple payback period .. 17 Net Present Value (NPV).

8 17 Internal rate of return (IRR) .. 17 Return on investment (ROI) .. 17 Sensitivity analysis .. 17 Procurement and Implementation schedule .. 18 vii List of Annexure Annexure 1 Establishment of baseline and monetary 19 Annexure 2 Process flow diagram .. 20 Annexure 2 Process flow diagram .. 20 Annexure 3 Technology assessment REPORT .. 21 Annexure 4 DETAILED financial analysis of Rapier loom (4 nos) .. 22 Annexure 5 Details of procurement and implementation plan .. 26 Annexure 6 Details of equipment and service provider.

9 27 Annexure 7 Quotations of proposed equipment .. 28 List of Tables Table Details of annual energy consumption of a typical unit .. 1 Table production cost by power loom machine .. 5 Table Benefits of Rapier loom over conventional power loom .. 10 Table specification of power loom for suitable machine .. 10 Table energy and cost benefit of rapier loom .. 14 Table Details of PROJECT cost .. 16 Table Financial indicator of PROJECT .. 17 Table Sensitivity analysis in different scenario.

10 18 viii List of Figures Figure Process flow chart of typical textile unit .. 3 Figure Rapier loom .. 7 List of Abbreviations kWh kilo Watt Hour SME Small and Medium Enterprises GHG Green House Gas BEE bureau of energy Efficiency DPR DETAILED PROJECT REPORT O&M Operational & Maintenance NPV Net Present Values ROI Return on Investment IRR Internal Rate of Return DSCR Debt Service Coverage Ratio PBT Profit Before Tax PAT Profit After Tax MoMSME Ministry of Micro Small and Medium Enterpries SIDBI Small Industries Development of India ix EXECUTIVE SUMMARY