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ENERGY DEMAND INDUSTRY 9

AT A GLANCE The growth of Indian economy has been in the range of

5.3%–5.5% in the last three quarters (Q4 of 2011/12 to Q2 of 2012/13).

With bauxite reserve of 3290 million tonnes, India ranks sixth in the world with a share of 3.19% of world bauxite reserves. The total aluminium production till November 2012 for the fiscal year 2012/13 was around 1 130 927 tonnes.

The installed production capacity of crude steel during 2012/13 was 91.66 million tonnes per annum (MTPA). The crude steel production has grown by about 8% per annum in recent years and stands at 74 MT in 2011/12.

India is the second largest producer of urea after China and third largest producer of finished phosphate fertilizers after USA and China. At present, there are 29 urea units in India having a capacity of about 21.15 MTPA. Out of these, 21 units are based on natural gas, which account for about 81%; four units based on naphtha,

which account for about 9%; and four units based on furnace oil/low sulphur heavy stock, which account for about 10% of the production capacity.

The production of cloth in the mill sector has shown a steady growth in the last decade and was 2205 million m2 in 2010/11. During the same period, the fabric production was 62 541 million m2.

There are 165 large cement plants and about 365 mini cement plants in the country with an installed capacity of 277.46 MTPA. Large producers contribute about 97% to the installed capacity.

There are 34 manufacturers of caustic soda, having aggregate installed capacity to the extent of 3.126 MTPA. The production of caustic soda during 2011/12 was 2.5558 MTPA.

There are about 760 pulp and paper mills in India with a combined installed capacity of about 12.7 MT. The total production of paper during 2010/11 was 10.11 MT.

Energy demand

TERI Energy & Environment Data Directory and Yearbook 2013/14208

IntroductionThe growth of Indian economy has been in the range of 5.3%–5.5% in the last three quarters (Q4 of 2011/12 to Q2 of 2012/13). The slowdown of Indian economy that started in the second quarter of 2011/12, when the growth rate declined to 6.7% from 8% in the first quarter, continued in the subsequent quarters. The slowdown has been all pervasive, affecting all industry sectors. The industrial performance measured in terms of Index of Industrial Production has shown a fluctuating trend in the past few years (Table 1). From just 2.5% in 2008/09, it increased to 5.3% in 2009/10 and then to 8.2% in 2010/11. However, it again declined to 2.9% in 2011/12 and 0.7% in 2012/13. This decline was mainly due to the negative growth rate in the mining sector (–1.9%) and a meagre growth in the manufacturing sector (0.7%) (Table 1).

Aluminium industryAluminium is the second most widely used metal after steel. The popularity of the metal is due to its excellent properties and versatility. The electricity sector in the country is the largest consumer of aluminium (48%) followed by automotive (15%), construction (13%), consumer durables (7%), machinery and equipment (7%), and packaging (4%) sectors. Primary aluminium production in India is concentrated among three large producers: National Aluminium Company Limited, Hindalco Industries Limited, and Vedanta Group, which comprises Bharat Aluminium Company Limited, Madras Aluminium Company Limited, and Vedanta Aluminium Limited. Aluminium is endlessly recyclable and more than a third of

aluminium produced globally originates from old, traded, and new scrap. Aluminium recycling is primarily concentrated in the small and medium enterprises sector with only one large-scale aluminium recycling unit of Hindalco located at Taloja, having a capacity of 25 000 tonnes per annum. Bauxite ore is used for producing aluminium. The basic production processes are the Bayer process for alumina refining and the Hall–Heroult process for aluminium smelting. India occupies sixth place in the world with a share of 3.19% of world bauxite reserves. The total resources of bauxite in India is about 3290 million tonnes (MT) out of which 900 MT are of reserves category and the remaining 2390 MT are of remaining resources. Odisha and Andhra Pradesh account for more than 90% of country’s bauxite reserves.

Production

The aluminium output of primary aluminium producers was 1.629 MT in 2010/11, which was approximately 3.7% of the world production. Table 2 gives the production of aluminium by primary aluminium producers from 2009/10 to 2012/13 (up to November 2012).

Energy consumption

Aluminium smelter and alumina refinery are the two major energy-consuming centres in primary aluminium manufacturing. The specific energy consumption (SEC) in 2012 for primary aluminium production in different continents is provided in Table 3. Compared with the production of primary aluminium, energy consumption in the recycling of aluminium is just 5%. A threshold limit of energy

Table 1 Annual growth rate of industrial production (%)

Period Mining and quarrying Manufacturing Electricity Overall

Per cent share in total 14.2 75.5 10.3 100

2008/09 2.6 2.5 2.7 2.5

2009/10 7.9 4.8 6.1 5.3

2010/11 5.2 9.0 5.0 8.2

2011/12 – 2.0 3.0 8.2 2.9

2012/13 (April–December) – 1.9 0.7 4.6 0.7

Source MoCI (2013)

Industry

TERI Energy & Environment Data Directory and Yearbook 2013/14 209

consumption above 7500 tonnes of oil equivalent (TOE) has been defined as a criterion for the aluminium sector to be classified as designated consumer under the Perform, Achieve, and Trade (PAT) scheme. Presently, there are 10 designated consumers in the sector.

Energy conservation measures

Some of the major energy conservation measures in aluminium production are as follows:• Increase in anode length to optimize current

density.• Increaseinanoderingbussizetoreducevoltage

drop.• Installation of state-of-the-art cathode block

pre-heater to reduce resistance by eliminating uneven heating before putting into new pots.

• Thealuminafeedingsystemcanbeimprovedbyadopting point feeding for proper distribution of alumina in the electrolyte.

• Installationofpregnantliquorflashingunitintheprecipitation area to reduce steam consumption.

• Recyclingcanbeincreased.• Automaticvoltagecontrolcanbereplacedwith

electronic pot controller to reduce DC power consumption in Söderberg alumina electrolysis.

Iron and steel industryConsumption of steel is taken to be an indicator of economic development. India is the fourth largest producer of crude steel in the world and accounts for about 5% of the world’s total crude steel production. India is also the leading producerofdirect reduced iron (DRI)or spongeiron. Crude steel is primarily made by two routes: large integrated plants use blast furnace and basic oxygenfurnace,whilesmallerplantsuseDRIand/or scrap steel and electric arc furnace (EAF) and/or induction furnace.

Capacity and production

The installed production capacity of crude steel during 2012/13 was 91.66 million tonnes per annum (MTPA). Apart from the blast furnace route in large integrated steel plants, the installed capacity of sponge iron units following the direct reduction route is about 32 MTPA. The crude steel production has grown by about 8% per annum in recent years and stands at 74 MT in 2011/12. The installed capacity and production of crude steel in recent years are given in Table 4. The share of different processes adopted in crude steel production in the country is given in Table 5.

Table 2 Yearly aluminium production (in tonnes)

Name of the company Aluminium production (in tonnes)

2009/10 2010/11 2011/12 2012/13 (up to November 2012)(P)

Nalco 431 488 443 600 413 089 271 256

Hindalco 555 404 543 670 581 985 346 928

Vedanta Group 537 408 642 249 676 380 512 743

Total 1 524 400 1 629 519 1 671 454 1 130 927

P – provisionalSource MoM (2013)

Table 3 Specific energy consumption for 2012

Location SEC (kWhAC/tonne) Deviation from world average (%)

North America 15 458 +6

South America 15 912 +9

Europe 15 697 +7

Asia (excluding China)

14 853 +1

China 13 844 –5

Gulf Cooperation Council

14 480 –1

Africa 14 772 +1

Oceania 14 911 +2

World average 14 637

Source <www.world-aluminium.org/statistics/primary-aluminium-smelting-energy-intensity>

Energy demand


The share of electric arc furnace route witnessed an increasing trend.

Energy consumption

There is large variation in SEC among steel plants becauseof largevariation insize, technology,rawmaterials, and products. The average SEC for large integrated Indian steel plants ranges between 6.09 Gcal/tonne and 8.17 Gcal/tonne compared to about 4.3 Gcal/tonne in Japan and 4.54 Gcal/tonne in South Korea. Although the SEC of Indian steel plants has declined significantly since 1990, mainly due to the entry of large private sector players, there is still a significant scope to improve the overall energy efficiency of the sector. A threshold limit of energy consumption above 30 000 TOE has been defined for the iron and steel sector for classification under designated consumer under PAT. Presently, there are 67 designated consumers in the sector.


Some energy conservation measures in the iron and steel sector are as follows:• Improvedchargingsysteminsinteringprocess.• Adoption of sinter cooler waste heat recovery

process.• Useofmulti-siltburnersinsinteringfurnace.• Adoption of top gas recovery turbine in blast

furnace.• Optimizingefficiencyofcoke-ovenplants.• Useofcokedryquenchingprocess.• Useofcoke-ovengasas supplementary fuel in

other areas.• Useofhotstovewasteheatrecoveryinexisting/

new blast furnace.• Use of iron-smelting technology “Corex”

(for green field projects).• Adoptionofpulverizedcoalinjectionmethodin

existing/new blast furnace.• Useofultra-highpowertransformerswithEAF.• Increase in hot blast temperature and ensure

proper coking coal blend.• Use of energy-efficient regenerative burners in

reheating furnaces.• Installation of vapour absorption refrigeration

systembyutilizingwasteheatinfurnaces.• Reuse of sludge after treatment by removing

moisture.• Reduction insulphurcontentofcoke-ovengas

before reuse.• Adoption of continuous casting in mini steel

plants.

Fertilizer industryChemicalfertilizershaveplayedanimportantrolein making the country self-reliant in foodgrain production.Themostwidelyusedfertilizersinclude

Table 4 Crude steel capacity and production in India (MTPA)

Year Capacity Production Capacity utilization (%)

2006/07 56.843 50.817 89

2007/08 59.875 53.857 90

2008/09 66.343 58.437 88

2009/10 75.001 65.839 88

2010/11* 80.363 70.672 88

2011/12 (P) 89.289 73.792 83

2012/13 91.665 58.328 (April–December) (P)

85

MTPA – million tonnes per annum; P – provisional*Revised figuresSource MoS (2013)

Table 5 Percentage share of different process routes in crude steel production

Process route Per cent share

2006/07 2010/11 (P) 2011/12 (P) 2012/13 (April–December)(P)

Blast furnace—basic oxygen furnace

50 45 42.4 43

Electric arc furnace 20 23 25.1 24

Induction furnace 30 32 32.5 33

P – provisionalSource MoS (2013)

Industry


nitrogenous (N), phosphatic (P), and potassic (K) fertilizers. India is the second largest producerof urea after China and third largest producer of finishedphosphatefertilizersafterUSAandChina.Thedomesticcapacityandproductionoffertilizershave more or less stagnated, and due to the rising demandforfertilizers,theimportsarecontinuouslyrising. Urea constitutes about 78% of the totalnitrogen consumption in the country. India’s 80% of urea requirement is met through indigenous resources. India’s urea import is about 20%–22% of the global trade.

Capacity and production

At present, there are 29 urea units in India having a capacity of about 21.15 MTPA. Out of these, 21 units are based on natural gas, which account for about 81%; four units based on naphtha, which account for about 9%; and four units based on furnace oil/low sulphur heavy stock, which account for about 10% of the production capacity. The indigenouscapacityoffertilizerproduction,whichis about 2.7 MT presently (2011/12), in nutrient terms, remained almost stagnant over the last decade. The installed capacity of different types of fertilizers inIndia isprovided inTable6,andtheinstalledcapacityofvariousfertilizerplants(urea)is provided in Table 7. The production of urea, diammonium phosphate, and complexes for the last few years is provided in Table 8.

Energy consumption

Energy is a major cost in the production of fertilizers.Ammoniaproductionaccountsforabout80% of the cost of production of urea. Globally, virtually all nitrogen fertilizers are derived fromammonia, and ammonia production accounts for

Table 6 Installed capacity of various fertilizers (MTPA)

Product Number of units Total installed capacity

Urea 31 21.084

Diammonium phosphate

12 7.299*

Complexes 19 5.222

Single super phosphate 82 7.713

* In the absence of domestic natural resources, complete requirement of potash is imported.Source MoCF (2013)

Table 7 Installed capacity and production of fertilizer plants (urea) in India

Name of plant Total installed capacity (’000 tonnes)

Production (2011/12) (’000 tonnes)

NFL Nangal-II 478.5 503.4

NFL Bhatinda 511.5 482.9

NFL Panipat 511.5 500.3

NFL Vijaipur-I 864.6 902.1

NFL Vijaipur-II 864.6 1 011.7

BVFCL Namrup-II 240.0 102.3

BVFCL Namrup-III 315.0 176.5

RCF Thal 1 706.8 1 772.5

RCF Trombay-V 330.0 336.0

MFL Chennai 486.8 486.7

IFFCO Kalol 544.5 600.0

IFFCO Phulpur 551.1 701.3

IFFCO Phulpur Expn 864.6 1 132.8

IFFCO Aonla-I 864.6 1 065.9

IFFCO Aonla-II 864.6 986.8

KRIBHCO Hazira 1 729.2 1 432.4

GSFC Vadodra 370.6 286.6

SFC Kota 379 385.9

ZIL Goa 399.3 365.4

SPIC Tuticorin 620 621.7

MCF Mangalore 380 379.4

GNFC Bharauch 636 701.8

IGFL Jagdishpur 864.6 1 162.2

NFCL Kakinanda-I 597.3 792.5

NFCL Kakinanda-II 597.3 769.1

CFCL Gadepan-I 864.6 1 106.5

CFCL Gadepan-II 864.6 1 039.5

TCL Babrala 864.6 1 164.6

KSFL Shahjahanpur 864.6 1 015.6

Total 19 700.4 21 984.4

BVFCL – Brahmaputra Valley Fertilizers Corporation Ltd; CFCL – Chambal Fertilizers and Chemicals Ltd; GNFC – Gujarat Narmada Valley Fertilizer Company; GSFC – Gujarat State Fertilizers and Chemicals; IFFCO – Indian Farmers Fertiliser Cooperative; IGFL – Indo Gulf Fertilizers Ltd; KRIBHCO – Krishak Bharti Cooperative; KSFL – Kribhco Shyam Fertilizers Ltd; MCF – Mangalore Chemicals and Fertilizers; MFL – Madras Fertilizers Ltd; NFCL – Nagarjuna Fertilizers and Chemicals Ltd; NFL – National Fertilizers Ltd; RCF – Rashtriya Chemicals and Fertilisers; SFC – Shriram Fertilisers and Chemicals; SPIC – Southern Petrochemical Industries Corporation; TCL – Tata Chemicals Ltd; ZIL – Zuari Industries LtdSource MoCF (2013)

Energy demand


Table 8 Growth of production of urea, diammonium phosphate, and complexes (MT)

Year 2007/08 2008/09 2009/10 2010/11 2011/12

Urea 19.860 19.920 21.112 21.881 21.984

Diammonium phosphate 4.212 2.993 4.246 3.537 3.963

Complex Fertilizers 5.850 6.848 8.038 8.727 7.770

MT – million tonnesSource MoCF (2013)

87% of industry’s total energy consumption. The manufactureofallnitrogenousfertilizerstogetheraccounts for about 94% of the sector’s energy use. For ammonia production, natural gas (67%) and coal (27%) are dominant feedstock globally. The new fertilizer plants are comparable to the bestin the world in terms of SEC. Figure 1 shows the considerable improvement in energy consumption between 1987/88 and 2010/11. A threshold limit of energy consumption above 30000TOEhasbeendefinedforthefertilizersectorfor classification under designated consumer under PAT. Presently, there are 29 designated consumers in the sector.


• Feedstock conversion from naphtha to naturalgas in ammonia and urea plants.

• Useofcarbondioxiderecoveryplanttorecovercarbon dioxide from flue gases of various furnaces.

• Installationoftwo-stagecarbondioxiderecoverysystem.

• Replacementofexistingcombustionpre-heaterwith stainless steel plate type pre-heater to reduce stack temperature; revamp of carbon dioxide compressor.

• Installationoflowtemperatureshiftguardwithadditional heat recovery to pre-heat boiler feed water.

• Conversion of single-stage flash vessel systemin the regeneration section to multistage flash vessel system with ejectors.

• Advanced process control system in ammoniaand urea plants.

Textile industryThe textiles sector accounts for about 14% of India’s industrial production, 4% of gross domestic product, and 11% of total exports. It is the second largest employer after agriculture, employing nearly 45 million people. The industry consumes a diverse range of fibres and yarn, but cotton remains the mainstay. The industry is highly diverse consisting of large sophisticated composite mills (covering complete processing of raw materials to finished product), spinning units, powerlooms, dyeing units, handlooms, and garments. There are about 0.5 million powerloom units having an installed capacity of 2.324 million powerlooms. The sector provides employment to nearly 5.7 million people and contributes 62% to total cloth production. Handloom weaving contributes about 15% to the total cloth production in the country. About 95% of the world’s hand-woven fabric comes from India.

Capacity, production, and technological statusOver the years, production of cloth in the mill sector has shown a steady growth in the last decade and was 2205 million m2 in 2010/11. Fabric production was 62 541 million m2 in 2010/11. The break-up of the production of spun yarn in the country (organizedandunorganized)isgiveninTable9.

Figure 1 Urea energy consumptionSource MoCF (2011)

Industry


Energy consumption

The textile industry is highly energy intensive. Wet processing or dyeing operation consumes almost 50% of the energy in a composite mill. Thermal energy (steam and hot water) is primarily used to process, dye, print, and dry the cloth during wet processing. There is a large scope to save energy in the boilers, steam distribution, and drying operation in a textile mill. Electricity is the major energy form used in spinning plants. Typically, about 75% of the electricity is used in the spinning machines, 15% in dehumidification, and the rest in lighting and air compressors. A threshold limit of energy consumption above 3000 TOE has been defined for the textile sector for classification under designated consumer under PAT. Presently, there are 90 designated consumers in the sector.


• Energyefficiencyimprovementinhumidificationplant.

• Installationofenergy-efficientfansinringframemachines.

• Installation of energy-efficient motors andvariable frequency drives in machines and pumps.

• Conversion of thermic fluid heating system todirect gas firing system in stenters and dryers.

• Temperature control system in processingmachines.

• Recoveryofcondensateinwetprocessingplants.• Energyefficiencyimprovementincylinderdryer.• Waste heat recovery in stenters, mercerizer

machines, and bleaching system.

• Replacing electric heating with thermic fluidheatinginpolymerizermachines.

• Installationofphotocellsforspeedframes.• Installationofflatbeltsforspinningringframe

machines.

Cement industryThe cement industry occupies an important place in the Indian economy because of its strong linkages to other sectors such as construction, infrastructure, coal, and power. India is the second largest cement producer in the world with a total installed capacity of 277.46 MTPA. There are 165 large cement plants and about 365 mini cement plants. As the basic raw material for cement production is limestone, the industry is concentrated around limestone reserves in the country. India has abundant reserves of limestone. Large producers contribute about 97% to the installed capacity. Average annual installed capacity of large cement plants in India is about 1.7 MTPA. About 98% of the production capacity in the country is in private sector. Almost 98% of the installed capacity in India uses the dry manufacturing process. Nearly half of the production capacity has been built in the last 10 years. The Indian cement industry is comparable to the best in the world in respect of energy consumption and use of latest technology. The private housing sector is the major consumer of cement (53%) followed by the government infrastructure sector.

ProductionIndia produces different types of cement such as ordinary Portland cement (31%), Portland PozzolanaCement(61%),PortlandBlast-furnace

Table 9 Production of spun yarn (million kg)

Year Cotton Blended/mixed 100% non-cotton Total

2006/07 2 824 635 354 3 813

2007/08 2 948 677 378 4 003

2008/09 2 896 655 361 3 912

2009/10 3 079 707 407 4 193

2010/11 3 490 797 426 4 713

2011/12 3 126 789 457 4 372

Source MoT (2012)

Energy demand


Slag Cement (7%), and others such as white and specialized cement (1%).The production ofcement increased from 100.1 MT in 2000/01 to 228.3 MT in 2010/11. The installed capacity of major cement plants in India is given in Table 10.

Energy consumption

The cement industry is highly energy intensive. The energy cost accounts for 35%–45% of the production cost in a cement plant. Production of clinker is the most energy-intensive stage of cement production. On an average, the average thermal energy consumption is estimated to be about 723 kcal/kg of clinker. Electricity is used in the mills, fans, conveyors, and other areas of the plant. The average electrical energy consumption is about 80 kWh/tonne of cement. The SEC trend of Indian cement plants is given in Table 11. The best thermal and electrical energy consumption presently achieved by the Indian cement industry is about 663 kcal/kg of clinker and 59 kWh/tonne of cement, which are comparable to the best reported figures of 660 kcal/kg of clinker and 65 kWh/tonne of cement in a developed country like Japan. It is expected that the industry’s average thermal energy consumption by the end of the Twelfth Five-Year Plan (2012–17) will be about 710 kcal/kg of clinker, and the average electrical energy consumption will come down to 78 kWh/tonne of cement. A threshold limit of energy consumption above 30 000 TOE has been defined for the cement sector for classification under designated consumer under PAT. Presently, there are 85 designated consumers in the sector.

Energy conservation measures• Modificationofpre-heaters’ topstagecyclones

for higher efficiency and low pressure drop.

Table 10 Capacity share of major cement plants (2010)

Company Capacity (MTPA)

Ultratech Cement 48.75

ACC Ltd 30.21

Ambuja Cement Ltd 25.00

Jaypee Cement 17.15

India Cements Ltd 15.85

Madras Cements Ltd 12.72

JK Cements Ltd 12.27

Shree Cement Ltd 12.00

Dalmia Cement Bharat Ltd 9.00

Chettinad Cement Corporation Ltd 8.20

Century Cement 7.80

Kesoram Cement and Vasavadatta Cement 7.25

Lafarge India Pvt. Ltd 6.55

Others 64.72

Total 277.46

Source SSEF (2013b)

• Optimization of coal fineness for kiln andcalciner firing.

• Installation of waste heat recovery systems forpower production from pre-heater and cooler exhaust gases.

• Modifications of grate cooler and cooler fanswith static pre-grate.

• Reducingthefeedsizeoflimestonebyinstallinghigh efficiency crusher as a pre-grinder before the cement mill.

• Replacement of pneumatic with mechanicalconveying system for cement mills along with weigh feeders.

• Installationofrollerpress.• Increaseinblendedcementproduction.

Table 11 Energy consumption trend of Indian cement industry

Parameter Year

1950–60 1970s 1980s 1990s Post-2000

Heat consumption (kcal/kg clinker) 1 300–1 600 900–1 000 800–900 650–750 650–750

Power consumption (kWh/tonne of cement)

115–130 110–125 105–115 95–105 80–100

Source SSEF (2013b)

Industry


• Arresting air leakage to decrease load on pre-heater fan and kiln/raw mill external static pressure fan.

• Use of variable frequency drive in boiler feedpumps, raw mill, coal mill, cooler drives, and so on.

• Use of renewable energy resources/alternativematerials in kiln and power plant.

Chlor-alkali industryThe chlor-alkali industry is the largest segment of the inorganic chemical industry. The key products of the industry are caustic soda, soda ash, and liquid chlorine. Caustic soda (sodium hydroxide) is produced by the electrolysis of brine by diaphragm or membrane cell process. The membrane cell is the newer process and accounts for over 95% of the caustic soda production in India. Electrolysis also produces chlorine and hydrogen as by-products. Power accounts for about 65% of the production cost of caustic soda. Demand from alumina, pulp and paper, soaps and detergents, softening of water, textiles and bleaching, and general cleaning application drives the caustic soda demand.

ProductionThe production of caustic soda and chlorine grew at a rate of 5.4% over the Eleventh Five-Year Plan period. There are 34 manufacturers of caustic soda, having aggregate installed capacity to the extent of 3.126 MTPA. As per the latest industry statistics, the 34 chlor-alkali plants produced 2.5558 MTPA of caustic soda during 2011/12. The leading producers of chlor-alkali and their production during 2011/12 are given in Table 12.

Energy consumptionThe SEC is about 2400–2500 kWh/tonne of caustic soda production in membrane cell process and about 3100–3400 kWh/tonne of caustic soda in diaphragm cell process. Table 13 gives the trend of SEC of Indian chlor-alkali industry. A threshold limit of energy consumption above 12 000 TOE has been defined for the chlor-alkali sector for classification under designated consumer under PAT. Presently, there are 22 designated consumers in the sector.


Caustic soda manufacturing is a highly energy-intensive process and consumes about 2.5 MW/MT of caustic soda. In the chlor-alkali industry, the electrolysis phase is the most energy intensive and power is the main form of energy used in this sector. Some of the energy-saving options for this sector are as follows:• Convert existing mercury-cell-based plant to

membrane cell plant.• Use of high performance membranes for

reducing energy consumption in the electrolysis process.

• Useofplateevaporators.• Optimizationofagitatoroperatinghours.• Regularandtimelyreplacementofmembranes

and recoating of electrodes to optimize powerconsumption.

• Explore use of advanced technologies such asoxygen-reducingelectrodes(oxygen-depolarizedcathodes).

• Installation of advanced control systems tocontrol brine feed temperature.

• Replaceinefficientchlorinecompressorstohighenergy efficiency chlorine compressors.

• Utilizing hydrogen generated in electrolysis invapour absorption machine.

Pulp and paper industry

There are about 760 pulp and paper mills in India with a combined installed capacity of about 12.7 MT. The majority of paper mills (about 75%) are based on recycled paper, followed by agro-based and wood-based mills. Paper board is the largest segment accounting for nearly 45% of the total domestic paper production, followed by printing and writing paper with 35% share and newsprint with 20% share. The industry is highly fragmented, consisting of large, medium, and small paper mills having capacities that range from 5 tonnes to 800 tonnes per day. The average capacity of paper machine is about 14 000 tonnes per annum as against the world average of 32 000 tonnes per annum.1

1 Report on updating of statistical data for the Indian paper Industry, CPPRI

Energy demand


size being about 20000 tonnes per annum.Theproduction of paper from different raw materials is provided in Table 14. The installed capacity and production of some of the large pulp and paper mills in India during 2010/11 are provided in Table 15.

Energy consumption

The pulp and paper industry is highly energy intensive. Energy cost accounts for about 16%–25% of the cost of production of paper. The SEC of integrated wood-based plants varies between 23 GJ/tonne and 37 GJ/tonne compared to 18–22 GJ/tonne of paper internationally.

Table 12 Installed capacity and production of major chlor-alkali plants in India

Name of the unit Installed capacity (thousand tonnes per annum)

Production (thousand tonnes per annum)

Per cent share of total installed capacity

Grasim Industries Ltd 308.4 260.26 9.87

Gujarat Alkalies 429.05 385.09 13.73

Reliance Industries Ltd 168.15 163.986 5.38

DSCL (Shriram Alkali), Jhagadia 157.5 127.508 5.04

Meghmani Finechem Ltd 141.75 102.07 4.53

The Andhra Sugars Ltd 132.00 104.64 4.22

Sree Rayalaseema Alkallies and Allied Chemicals Ltd

123.95 123.53 3.97

Gujarat Flouro Chemicals Ltd 120.45 94.78 3.85

DSCL (Shriram Vinyl Chem), Kota 117.25 108.80 3.75

Aditya Birla Chemicals (India) Ltd (formerly Bihar Casutic and Chemicals Ltd)

114.35 101.92 3.66

Lords Chloro Alkali Ltd 111.21 12.62 3.56

DCW Ltd 100.00 90.57 3.20

Aditya Birla Nuvo Ltd 99.00 81.98 3.17

Punjab Alkalies and Chemicals Ltd 99.00 88.17 3.17

ABCIL, Renukoot Chemical Division, Renukoot 83.00 80.69 2.66

Siel Chemical Complex (a unit of Mawana Sugars Ltd)

82.50 61.96 2.64

Nirma Ltd 79.20 63.89 2.53

United Phosphorus Ltd 64.80 51.92 2.07

Others 594.54 451.35 19.02

Total 3 126.1 2 555.804

ABCIL – Aditya Birla Chemicals (India) Ltd; DSCL – DCM Shriram Consolidated LtdSource SSEF (2013a)

Table 13 Average operating SEC of chlor-alkali sector

Financial year Average SEC (kWh/tonne of caustic soda produced)

1990/91 3 351

1994/95 3 130

1999–2000 2 977

2009/10 2 350

Source SSEF (2013a)

Production

The majority of the pulp and paper units are small in size. About 56 mills have installed capacitiesabove 50 000 tonnes per annum with the average

Industry


Table 15 Installed capacity and production of selected pulp and paper mills in tonnes for 2010/11

Company Capacity (tonnes) Production (tonnes)

ABC Papers 105 000 60 553

Abhishek Industries 175 000 123 639

Andhra Paper Mills 175 000 176 452

BIMT 800 000 796 718

Emami Paper Mills Ltd 145 000 142 494

Hindustan Newsprint Ltd

100 000 100 546

ITC-PSPD 550 000 547 931

JK Paper Ltd 240 000 273 755

N R Agarwal Industries Ltd

170 000 158 031

Rainbow Papers Ltd 159 500 109 054.9

Rama Paper Mills Ltd 61 000 48 627.9

Star Paper Mills 75 000 68 592

Tamilnadu Newsprint and Papers Ltd

275 575 245 008

Westcoast Paper 320 000 173 638

Yash Paper Mills 39 960 26 598

PSPD – Paperboards and Speciality Papers DivisionSource SSEF (2013c)

Table 14 Production of paper from different raw materials (MT) in 2010/11

Variety of paper Wood-based Agro-based Recycled fibre/waste, paper-based Total

Writing/printing 2.36 0.73 0.81 3.90

Packaging 0.77 1.50 3.15 5.42

Newsprint 0.03 Nil 0.76 0.79

Total 3.16 2.23 4.72 10.11

Source Planning Commission (2011)

A threshold limit of energy consumption above 30 000 TOE has been defined for the iron and steel sector for classification under designated consumer under PAT. Presently, there are 31 designated consumers in the sector.


• Adoptionofextendeddelignificationprocessinpulping process.

• Adoption of pressure screens instead ofcentrifugal screens in pulping section.

• Installation of low intensity refiners for woodfibres.

• Installationofmulti-portcylinderdryerinpapermachine.

• Optimizing steam consumption in paper milldryer.

• Conversion of existing boiler to fluidized bedcombustion boiler.

• Use of long tube falling film evaporators forconcentration of black liquor.

• Installation of advanced condensate recoveryand reuse system.

• Installation of high pressure cogenerationsystem.

• Installation of shoe press machine instead ofroller press machine in paper mills.

• Gasificationofblackliquor.• Biomethanation of wastewater in agro-based

mills.

Micro, small, and medium enterprisesThe micro, small, and medium enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs are complementary to large industries as ancillary units, and this sector contributes enormously to the socio-economic development of the country. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSME sector in addition to providing a wide range of services. As per the Fourth All-India Census of MSME, the total number of enterprises (registered and unregistered) in the MSME sector was estimated to be 36.176 million with total employment of 80.524 million. Ruralarea accounted for 55.34% of the total working enterprises in the MSME sector. The classification of total number of enterprises by nature of activity

Energy demand


indicates that 31.79% of the enterprises in the MSME sector were engaged in manufacturing, whereas 68.21% of the enterprises were engaged in providing services. The distribution of total number of MSME units as per the source of energy is given in Table 16.

Policy initiativesIndustries play an important role in the Indian economy. The Government of India has taken several initiatives to promote the industrial sector in India. Some of the recent policy initiatives related tothissectoraresummarizedasfollows:• Toboosttheexpansionofcompanies,theUnion

Budget 2013/14 proposed the introduction of an investment allowance for new high-value investment. A company investing `1000 million or more in plant and machinery from 1 April 2013 to 31 March 2015 will be entitled to deduct an investment allowance of 15% of the investment (in addition to depreciation) from its taxable profits.

• During 2012, the government introducedmeasures for liberalizing/rationalizing theforeign direct investment (FDI) policy. In 2012, the government amended the policy on single brand retail trading, specifying that for proposals

involving FDI beyond 51%, sourcing of 30% of the value of goods purchased will be from India, preferably from MSMEs, village and cottage industries, and artisans and craftsmen in all sectors.

• The Department of Chemicals andPetrochemicals has formulated a draft National Chemical Policy (2012). The policy is expected to lay a road map for the growth of the chemical sector in future.

• ToboosttheMSMEsector,thegovernmenthasnotified a Public Procurement Policy for Goods Produced and Services rendered by Micro and Small Enterprises (MSEs). This policy has been effective since 1 April 2012. The policy mandates that all central ministries/departments/central public sector undertakings shall procure a minimum of 20% of their annual requirement of goods/services from MSEs. Further, the policy has earmarked a sub-target of 4% procurement out of the 20% from MSEs owned by scheduled caste/scheduled tribe entrepreneurs.

• To enhance the availability of equity to theMSME sector, the India Opportunities Venture Fund worth ̀ 50 000 million was set up in August 2012.

• IntheUnionBudget2013/14,thegovernmenthasannouncedthattheTechnologyUpgradationFund Scheme for the textile sector will be continued in the Twelfth Five-Year Plan with an investment target of `1 510 000 million.

• To provide end-to-end information on themovementof fertilizers and subsidies from themanufacturer to the retail level, a mobile-based Fertilizer Management System (mFMS) hasbeen designed. Phase I of mFMS has come into effect from 1 November 2012.

• Tofacilitatefreshinvestmentintheureasectorand to reduce import of urea, the Department ofFertilizersnotifiedtheNewInvestmentPolicy2012 on 2 January 2013.

• IntheUnionBudget2013/14,thegovernmenthas not changed the excise duty on paper and paperboard, which was increased from 5% to 6% with effect from 17 March 2012.

Table 16 Distribution of enterprises by main source of energy

Source of energy Number of enterprises (million)

No energy required 19.818 (55%)

Electricity 11.701 (32%)

Oil 1.439 (4%)

Others 1.044 (3%)

Coal 0.648 (2%)

Traditional energy/firewood 0.739 (2%)

Liquefied petroleum gas/compressed natural gas

0.404 (1%)

Non-conventional energy 0.088 (0.2%)

Not recorded 0.295 (1%)

Source MMSME (2013)

Industry


Green technologies for iron and steel industry

India is the fourth largest producer of crude steel in the world and accounts for about 5% of the world’s total crude steel production. The iron and steel industry is one of the important and growing industrial sectors in India. Production of iron and steel involves energy-intensive processes. Hence, the sector is of particular interest to developmental planners from a sustainable development viewpoint. Although the specific energy consumption (SEC) of Indian steel plants has declined significantly since 1990, there is still a significant scope to improve the SEC of Indian steel plants through the adoption of state-of-the-art, energy-efficient technologies. Japan’s iron and steel industry is among the most energy efficient in the world. Hence, there is a significant scope to save energy and reduce greenhouse gas emissions through technology cooperation with Japan. To promote diffusion of energy-efficient Japanese technology, a “customized list of energy-efficient and environmental technologies for the Indian steel industry” has been developed. The list was prepared through public–private partnership between India and Japan. Public and private collaborative meetings were also organized between India and Japan. The list details 17 energy-saving technologies and also addresses issue concerning (1) specific energy savings and CO2 reduction by adoption of these technologies, (2) proficiency level of the technologies in Japan, and (3) their suitability in the Indian environment. In addition, a “Guidebook for Diffusion of Technologies on Technologies Customized List” has also been prepared, which provides step-by-step instructions for navigating through the information contained in the customized list and details of financial assistance available from Japan for the energy-efficient technologies. Preparation of similar customized lists for other energy-intensive industrial sectors will help generate greater awareness on green technologies and also promote discussion and collaboration between Indian industry and industrialized countries.

Energy demand


ReferencesMMSME (Ministry of Micro, Small, and Medium Enterprises). 2013.

Annual Report 2012–13. New Delhi: MMSMEMoCF (Ministry of Chemicals and Fertilizers). 2011. Report of the

Working group on Fertiliser Industry for the Twelfth Plan (2012–13 to 2016–17). New Delhi: MoCF

MoCF (Ministry of Chemicals and Fertilizers). 2013. Indian Fertiliser Scenario 2012. New Delhi: Department of Fertilizers, MoCF

MoCI (Ministry of Commerce and Industries). 2013. Annual Report 2012–13. New Delhi: Department of Industrial Policy and Promotion, MoCI

MoM (Ministry of Mines). 2013. Annual Report 2012–13. New Delhi: MoM

MoS (Ministry of Steel). 2013. Annual Report 2012–13. New Delhi: MoS

MoT (Ministry of Textiles). 2012. Official Indian Textile Statistics 2011–12. New Delhi: Office of the Textile Commissioner, MoT

Planning Commission. 2011. Report of the Working Group on Pulp and Paper for XII Five-Year Plan. New Delhi: Planning Commission

SSEF (Shakti Sustainable Energy Foundation). 2013a. Technology Compendium on Energy Saving Opportunities: chlor-alkali sector. New Delhi: SSEF

SSEF (Shakti Sustainable Energy Foundation). 2013b. Technology Compendium on Energy Saving Opportunities: cement sector. New Delhi: SSEF

SSEF (Shakti Sustainable Energy Foundation). 2013c. Technology Compendium on Energy Saving Opportunities: pulp and paper sector. New Delhi: SSEF

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