Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

PRE-FEASIBILITY REPORT
1. EXECUTIVE SUMMARY
Pine Laminates Private Limited is incorporated on 21 January 2004. It is
classified as Non-govt Company and is registered at Registrar of Companies,
Jaipur.
They are into the business of Ply, plywood, laminated & decorative plywood,
water- proof plywood, boards, ply board, block boards, teak-ply & boards,
sunmica, laminates, flush doors, penal doors and marine plywood included in
class 19.
They are now proposing for manufacturing of Formaldehyde (80 MT per day)
for their own use at A-526, RIICO Industrial area, Chopanki, Bhiwadi, Tehsil-
Tijara, District Alwar (Rajasthan).
As per EIA Notification dated 14th Sept., 2006 and amended from time to time,
the proposed project falls under Category “A”, Project or Activity 5(f)Synthetic
Organic Chemicals Industry, due to presence of Interstate Boundary of Rajasthan
and Haryana at a distance of 3.22 Km , in NE direction and will require
environmental Clearance from MoEF&CC, New Delhi. This pre-feasibility report
has, therefore, been prepared by the consultant to assess the likely impact of the
proposed on various factors which may be affected with the implementation of
the program and to suggest remedial/precautionary measures, if any.
2. INFORMATION OF PROJECT/BACKGROUND INFORMATION
i) Identification of project and project proponent
Project Details
The project proposal is for manufacturing of 80 MT per day at A-526, RIICO
Industrial area, Chopanki, Bhiwadi, Tehsil-Tijara, District Alwar (Rajasthan).
Pine Laminates Pvt. Ltd. Is involved in the business of manufacturing Ply,
plywood, laminated & decorative plywood, water- proof plywood, boards, ply
board, block boards, teak-ply & boards, sunmica, laminates, flush doors, penal
doors and marine plywood. The purpose of proposing formaldehyde production
is for captive consumption only. Formaldehyde is used by ply wood and sun mica
laminated sheets manufacturers, who make adhesives like Urea Formaldehyde
and Phenol Formaldehyde products.
Project Proponent Details
Pine Laminates Private Limited is a Private incorporated on 21 January 2004. It
is classified as Non-govt Company and is registered at Registrar of Companies,
Jaipur.
They are into the business of Ply, plywood, laminated & decorative plywood,
water- proof plywood, boards, ply board, block boards, teak-ply & boards,
sunmica, laminates, flush doors, penal doors and marine plywood included in
class 19.

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Details of Authorized Signatory are as follows:
Name: Manoj Aggarwal
Designation:
Address of Correspondence: Pine Laminates Pvt. Ltd. A-526, RIICO Industrial
area, Chopanki, Bhiwadi, Tehsil-Tijara, District Alwar (Rajasthan)-301019.
E-mail ID: [email protected]
ii) Brief Description of Nature of Project
The proposed project is for setting up the unit for manufacturing 80 MT/day of
Formaldehyde for captive use by Pine Laminates Pvt. Ltd at A-526, RIICO
Industrial area, Chopanki, Bhiwadi, Tehsil-Tijara, District Alwar (Rajasthan). The
project is listed under item Project or Activity 5(f) Synthetic Organic Chemicals
Industry, Category “A” due to presence of Interstate Boundary of Rajasthan and
Haryana at a distance of 3.22 Km, in NE direction.
iii) Need for the Project and it’s importance to Country and Region
Formaldehyde (CH2O) is the simplest and most commercially important
aldehyde. It is a colorless gas at room temperature and is soluble in water,
alcohols and other polar solvents.

The Plywood Boards and sun mica sheets market is growing very fast in India.
The market is expected to continue to grow at the minimum rate of 10 to 15%
per year.

During the last decade India has built a very strong position as sun mica sheets
and ply wood boards for domestic consumption and for Exports to South asian
countries & Middle East.

Formaldehyde is used by ply wood and sun mica laminated sheets

manufacturers, who make adhesives like Urea Formaldehyde and Phenol
Formaldehyde products. As Pine Laminates are into the business of Ply,
plywood, laminated & decorative plywood, water- proof plywood, boards, ply
board, block boards, teak-ply & boards, sunmica, laminates, flush doors, penal
doors and marine plywood, so considering the above they are proposing to setup
a manufacturing unit of Formaldehyde with the capacity of production of 80 M.T
per day.

iv) Demand & Supply Gap

Asia experiences 5% gap in its demand and supply. Moreover, World
consumption is forecasted to grow at an average annual rate of almost 5%
during2011–2016. Continuing significant-to-rapid demand growth in Asia
(mainly China)for most applications will balance out moderate growth in North
America, Western Europe, Africa and Oceania. The proposed product

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

formaldehyde is mainly used to produce Laminated Sheets. These sheets have
good market demand to develop the home and office for furniture. The products
generated from Formaldehyde include Melamine Formaldehyde Resin, Phenol
Formaldehyde Resin etc. The textile industry use formaldehyde-based resins as
finishers to make fabrics crease-resistant. Also the seresins are used to produce
decorative laminate sheets. Formaldehyde-based materials are very important &
essential to manufacture of automobiles, and they are also used to make
components for the transmission, electrical system, engine block, door panels,
axles and brake shoes. The project proponent is already into the business of Ply,
plywood, laminated & decorative plywood, water- proof plywood, boards, ply
board, block boards, teak-ply & boards, sunmica, laminates, flush doors, penal
doors and marine plywood so they are proposing to manufacture formaldehyde
for it’s captive use.
v) Import v/s Indigenous Production
Indian market is open and big that is why every kind of import is booming.
Indian plywood and panel trade has become global place as the consumption of
different imported ply panels are on the rise. Unlike before Indians are now
welcomed by plywood manufacturer of China. Earlier India was a self dependent
country for commercial or high quality plywood, but sharp drop in domestic
manufacturing output has resulted in material sourcing from countries like
Burma, Malaysia, Indonesia, China, Vietnam etc. Now Indian plywood market is
somehow curtailed or competed by incoming panel products from China. Be it
film face, decorative, laminate or MR plywood everything is now being imported
partially or more and is sold. Indian industrialist must understand the fact that
its no more a regional shift, it is a global shift. Indian technology should be
upgraded and updated at par with international standards.
The working environment in India has changed tremendously. Earlier the trade
fairs were hardly participated by foreign timber, lumber and plywood
manufacturing companies where as now it is flooded with global suppliers.
vi) Export Possibility
M/s. Pine Laminates Pvt. Ltd. is proposing the Formaldehyde production for it’s
captive use only, hence there is no export possibility.
vii) Employment Generation
During construction phase approx 10-12 persons will be required. Whereas it is
estimated that total 10-12 persons will be required for the proposed project
during operation phase.
Indirect employment is also likely to be generated with the proposed project
which will be economically beneficial for the development.
3.0 PROJECT DESCRIPTION
i) Type of Project including interlinked and interdependent projects, if any

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Formaldehyde is used in production of laminated sheets and plywood. The
laminated sheets and plywood industries are dependent on formaldehyde
manufacturing industry.
ii) Location (Map showing general location, specific location, and project
boundary and project site layout) with coordinates
A-526, RIICO Industrial area, Chopanki, Bhiwadi
Tehsil-Tijara,
District Alwar
State: Rajasthan

Figure 1: Location Map Showing Project Site

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Figure 2: Google Image Showing Project Site

Gaurang Environmental Solutions Pvt. Ltd.

 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Figure 3: Key Plan Showing 15 Km Radius of Study Area

Gaurang Environmental Solutions Pvt. Ltd.

 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Figure 4: Figure Showing Plant Layout

Gaurang Environmental Solutions Pvt. Ltd.

 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

iii) Details of alternative sites considered and the basis of selecting the proposed
site, particularly the environment consideration gone into should be
highlighted.
No alternate sites have been examined for the proposed project as the project shall
be setup on the purchased land.
iv) Size or magnitude of Operation
The production capacity is as under:
Table 1: Plant Capacity
Particular Proposed Capacity
Formaldehyde 80 MT/day
The total area for setting up the formaldehyde unit is 1960 sq m.
v) Process Description (a schematic diagram/flow chart showing the project
layout, components of the project etc. should be given)
The catalytic oxidation process is an optimized production method. Let us discuss the
technology in this process. It is a simple process as per the stoichiometric reaction
steps as shown below:
1. Oxidation of Methanol with oxygen present in the air
CH3OH+1/2 O2 HCHO+H2O
2. Pyrolysis endothermic reaction
CH3OH HCHO+H2
3. Side Reaction-Complete combustion producing heat energy
CH3OH+3/2 O2 2H2O+CO2
Silver Catalyst Method
Initially Air compressed to pressure 0.2 atm by an air compressor and fed to the
bottom of methanol vaporizer. The ratio of methanol and air maintained about
35-45%. This mixture heated to the reaction temperature 550-6000C by series of
pre heater before entering into the silver catalyst reactor. The catalytic reactor is
fixed bed type filled with silver catalyst used for converting methanol to
formaldehyde. The fraction of conversion depends on the catalyst type and the
temperature of the reactor at fixed operating pressure. Advanced reactor controls
both reactions, exothermic combustion reaction and endothermic dehydration
reaction simultaneously in single step.
The product steam sent to purification and recovery section. Unreacted methanol
fed back to the process of methanol vaporizer. Recycle stream contains 15%
unreacted methanol of feed to the vaporizer. Formaldehyde obtained as the heavy
end of alcohol stripper column. It is in the form of aqueous containing 63% water.
The overall process has yield ranging from 85-90% on the weight basis.

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

Figure 5: Process Flow Chart

vi) Raw material required along with estimated quantity, likely source,
marketing area of final products, and mode of transport of raw material and
Finished products.
Raw Material requirement for production of Formaldehyde is methanol. Quantity of
methanol required will be 40 MT/day.
Table 2: Raw Material Requirement, it’s Source
S.No Name of the Raw Quantity Required Source
Material
1 Methanol 40 MT/day Local Market

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

vii) Resources optimization/recycling and reuse envisaged in the project, if any,

should be briefly outlined.
M/s. Pine Laminates Pvt. Ltd. will optimize utilization of resources including Land,
Fuel, Water and Electricity.
viii) Availability of Water its source, Energy/Power requirement and source
Water Requirement
Total water requirement for the proposed project will be approx 52 KLD (Industrial
water: 50 KLD and Domestic water 2 KLD) which will be sourced ground water for
which the permission will be taken from CGWB.
Power Requirement
Maximum power requirement for the plant will be 0.25 MW. The power will be
supplied from J. V. V. N. L. Bhiwadi. One no. of DG set of capacity 250 KVA is also
proposed as the backup power supply.

ix) Quantity of waste to be generated (Liquid and solid) and scheme for their
management.
Process Waste
As per present scheme, no process waste will be generated. if in case generated shall
be stored and disposed off at Treatment Storage and Disposal Facility (TSDF)
approved by Pollution Control Board.
Waste Water Generation & their Management
There will be no waste water generation. The industrial waste water generated
will be recycled in the process itself. The domestic waste water will be managed by
the RIICO industrial area only. Thus, unit will maintain Zero Effluent Discharge.
4.0 SITE ANALYSIS
i) Connectivity
The proposed plant site is well connected with the rail and road connectivity.
The site is about 5.4 km W from SH-25, 5.5 Km N to Tauru Road and 10 km NW
to NH-8. The nearest settlement is Phalsa is at a distance of 0.7 km (approx) in
NNE direction. The nearest railway station is Pataudi Road Railway Station is at
a distance of 24.3 km (approx) in NNW direction. Rewari Railway station is at a
distance of 26.0 Km in WNW direction. Indira Ghandhi International Airport,
New Delhi is at a distance of 48.0 km (approx) in NNE direction from the project
site.
ii) Land form, Land Use, Land Ownership
The total area for setting up the formaldehyde unit is 1960 sq m. The land is
already under the possession on M/s Pine Laminates Pvt. Ltd.
iii) Topography (Along with Map)

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

The site has been observed to be almost flat level in topography with an elevation
of 281.33 m.

Figure 6: Google Image of Proposed Project Site

iv) Existing Land Use Pattern
The proposed project site lies in RIICO Industrial area. The land is already under
industrial use only, hence there will be no change in land use pattern after
coming up of the proposed project.
v) Existing Infrastructure
The proposed project is Greenfield project & the land is under the possession of
project proponent. M/s. Pine Laminates Pvt. Ltd. Have their laminates industry
just near to the proposed site, hence all the required infrastructure is available.
The site is about 5.4 km W from SH-25, 5.5 Km N to Tauru Road and 10 km NW
to NH-8.
vi) Soil Classification
The district is quadrilateral in shape. The Aravalli ranges form ridges of rocky
hills in most parts and are generally parallel. These make their appearance in the
district from north east in Tijara subdivision and run southwards forming
boundary of the district in the north east for about 24 km, terminating near
Naugaon. Another prominent hill range is at Mandawar, which passes through
Jindoli and Alwar towards the extreme south west corner of the district adjacent
to Jaipur district. The low hills cover almost entire Thanagaji and Rajgarh tehsils
& about one third of the Alwar tehsil 4 and form prominent feature in Bansur,
Kishangarh and Tijara tehsils. Mainly three major types of soils are found in the
Alwar District:

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

 Lithosol & regosol of hills (Red Grey valley Soil) These are found in
the Aravalli hills of south western part of the district. These soils are
shallow with gravels found very near the surface, light textured, fairly
drained, reddish brown to grayish brown in colour.
 Older alluvium (Older Alluvial Soils) These soils are derived from
alluvium and found mainly in western parts of the district. These soils are
non calcareous, semi-consolidated to unconsolidated brown soils, loamy
sand to sandy loam in texture. They are well drained and occupy gently
sloping terrains.
 Recent alluvium (Red Sandy Soils) These soils are developed in
alluvium and found mainly in the eastern part of the district. These soils
are deep, well drained, sandy loam to loam in texture and noncalcareous.
vii) Climatic Data From Secondary Sources
Climate of the district can be classified as semi-arid. It is characterized by very
hot summer and very cold winters with fairly good rainfall during south west
monsoon period. In May and June, the maximum temperature may go up to
470C. The potential evapo transpiration rates are quite high especially during
May and June. Normal annual rainfall of the district is 631mm.
viii) Social Infrastructure Available
1. Railway Station
 Rewari Railway station – 26.0 km WNW
 Pataudi Road Railway Station – 24.3 km NNW
2. Road
 SH 25 – 5.4 km W
 Tauru Road - 5.5 km N
 NH 8 – 10.0 km NW
3. Medical Facilities
 SH 25 – 5.4 km W
 Tauru Road - 5.5 km N
 NH 8 – 10.0 km NW
4. Educational Facilities
 Quantum Kids - Play School 5.4 km NW
 Modern Public School Adharshila 5.3 km NNW
 U C S K M Public School 5.5 km NNW

Table 3 : Details of 10 Km Radius Study Area

S. No. Particulars Details
1. Geographical Latitude : N
location Longitude : E

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

2. Nearest town/city Bhiwadi, 6.2 Km NNW
3. Highways  SH-25, 5.4 Km, W
 NH-8, 10 Km, NW
4. Railway station  Rewari Railway station – 26.0 km WNW
 Pataudi Road Railway Station – 24.3 km NNW
5. Airport IGI Airport – 48.0 km NNE
6. River/ Water body  Indori Nala: 5.7 Km, NE
 Sahibi River: 13 Km, W

5.0 PLANNING BRIEF

i) Planning Concept
Pine Laminates Pvt. Limited is into the business of ply, laminates etc. For these
products they require Formaldehyde as a resin, hence they are proposing for
manufacture of 80 MT/ day Formaldehyde unit for their captive use only.
As per EIA Notification dated 14th September, 2006, and as amended from time
to time, the project falls under activity ‘5(f)’ and the presence of interstate
boundary of Haryana and Rajasthan (3.22 Km, NE) within 5km from the project
site in North-East direction makes the general condition applicable on the
project which makes it category ‘A’ project. So the Proposed project will be
appraised at MOEF&CC.
ii) Employment & Population Projection
It is estimated that total 10-12 persons will be required during the construction
phase and 10-12 no. of skilled workers will be required for smooth working of
the plant. Indirect employment will also be generated from the proposed project
during construction and operation.
iii) Land Use Planning
The proposed project will be set up in an area of 1960 sq m. The land use break
up is as follows:
Table 4: Land Use Break up Details

S. No Type of Land Use Area in Sq m

Shed Area 882
1
Open /Paved Area 431.2
2
Green Belt Area 646.8
3
Total 1960
iv) Assessment of Infrastructure Demand (Physical & Social)

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

The road facility is available which is used and properly maintained. The project is
well connected with state highway and national highway. Clean drinking water and
medical facilities are made available at project area. The major plant & machinery
required for the proposed project is as given below:
 Reactor
 Condenser
 Evaporator
 ABS Column
 Cooling Tower
 Blower
 Storage Tank
 Steam Separator
 Mixing Tank
 Process water tank
 Heat Exchanger etc.
v) Amenities/ Facilities
Facilities like canteen, rest rooms and recreation facilities will be provided in the
proposed project. No other additional facilities are proposed.
6.0 PROPOSED INFRASTRUCTURE
i) Total Area

The proposed project will be set up in an area of 1960 sq m. The greenbelt will also be
developed at the site whose area is estimated as 645 sq. m. Adequate green belt
provision as per MoEFCC guidelines will be considered for proposed project
development. Further, unpaved areas if any, within the plant boundary will be
provided with grass cover which will also improve the plant aesthetics.

ii) Social Infrastructure

The various infrastructure present are as follows:
1. Railway Station
 Rewari Railway station – 26.0 km WNW
 Pataudi Road Railway Station – 24.3 km NNW
2. Road
 SH 25 – 5.4 km W
 Tauru Road - 5.5 km N
 NH 8 – 10.0 km NW
3. Medical Facilities
 SH 25 – 5.4 km W
 Tauru Road - 5.5 km N

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

 NH 8 – 10.0 km NW
4. Educational Facilities
 Quantum Kids - Play School 5.4 km NW
 Modern Public School Adharshila 5.3 km NNW
 U C S K M Public School 5.5 km NNW
iii) Connectivity (Traffic and transportation Road/Rail/Metro/Water ways
etc.)
The project is located about 6.2 km from Bhiwadi city which is towards NNW
direction of the project site. Nearest railway station is Pataudi Road Railway
Station which is at a distance of 24.3 km towards NNW from the Project Site. SH
25 is at a distance of 5.4 km towards W and NH-8 Km is at a distance of 10 Km in
NW direction. Indira Gandhi International Airport, is at a distance of 48 km
towards NNE.
iv) Drinking Water Management (Source & supply of water)
Water required for industrial and drinking purpose and will be met through
ground water supply. Approx 50 KLD fresh water is required for trade as well
and 2 KLD for domestic purposes.
v) Industrial Waste Management
Detailed earlier in item no. 3.9
vi) Solid Waste
As per present scheme, no process waste will be generated. if in case generated
shall be stored and disposed off at Treatment Storage and Disposal Facility
(TSDF) approved by Pollution Control Board.
7.0 REHABILITATION & RESETTLEMENT PLAN

No agricultural land and habitation is present in the land and there is no displacement
involved. Hence, no Resettlement and Rehabilitation is envisaged for this project.

8.0 PROJECT SCHEDULE & COST ESTIMATES

i) Likely date of start of Construction and likely date of completion
(Implementation schedule) :
The construction of the project shall commence soon after receipt of
Environment Clearance from MoEF& CC and CTE from RPCB. The project
execution schedule shall be another 18 months after getting project clearance/
environment clearance.
ii) Estimated Project Cost
The cost of the proposed formaldehyde manufacturing unit will be 2.5 Crores.
9.0 ANALYSIS OF PROPOSAL (Final Recommendation)
Formaldehyde is used by ply wood and sun mica laminated sheets manufacturers, who
make adhesives like Urea Formaldehyde and Phenol Formaldehyde products. The

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 Project: Proposed Formaldehyde manufacturing unit

Promoters: Pine Laminates Pvt. Ltd. Pre-Feasibility Report

commercial production of Formaldehyde is manufactured from oxidation-
dehydrogenation using a silver catalyst involving either the complete or incomplete
conversion of methanol.

The project is envisaged to meet the demand supply gap in the domestic market, as the
gap is created due to increase in growth of Formaldehyde for meeting increased
demand of Plywood and Sun Mica industries.

The Plywood Boards and sun mica sheets market is growing very fast in India. The
market is expected to continue to grow at the minimum rate of 10 to 15% per year
which makes the sufficient possibility to fulfill the domestic market demand. Both the
Domestic & Export supplies of the company will indirectly contribute to the growth of
our nation.
A financial and social benefit has been considered while analyzing the proposal. The
proposed expansion is environmentally compatible and will helps to people improving
their financial status of the local people. Corporate Social Responsible (CSR) program
shall be executed on need base.
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