JK PAPER LIMITED

EXECUTIVE SUMMARY
OF

ENVIRONMENTAL IMPACT ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN FOR EXPANSION CUM MODERNIZATION OF PAPER AND PAPER BOARD
(FROM 0.12 TO 0.26 MILLION TONNES PER ANNUM AS WELL AS PULP FROM 0.11 TO 0.2 BONE DRY MILLION TONNES PER ANNUM)

IN DISTT. RAYAGADA, ORISSA

NOVEMBER, 2010
(Issue 1 Rev. 0)

Prepared by:

MIN ME C C O NSUL T AN C Y P VT. L TD .

Ph : 29534777, 29532236, 29535891 ; Fax: 091-11-29532568 E m a i l : m i n _ m e c @ v s n l . c o m ; W e b s i t e : ht t p: / / w ww .m in m e c. c o. in

An ISO 9001:2000 approved company

Min Mec Consultancy Pvt. Ltd.

EXECUTIVE SUMMARY OF EIA/EMP REPORT OF EXPANSION CUM MODERNIZATION OF PAPER AND PAPER BOARD DISTT. RAYAGADA, ORISSA

1.0 1.1

INTRODUCTION General background of the project JK Paper Ltd. is Indias largest producer of branded papers and a leading player in the Fine papers and Packaging Board segments. It holds no. 1 position in copier paper followed by BILT, TNPL, Century, Orient, APPM, ITC, Seshasayee and West Coast. It has two paper plants in India, one is in eastern part of India in Orissa and the other one is situated in Sonagadh, Gujarat in western part of the country. Company has proposed expansion cum modernization of paper and paper board from 0.12 to 0.26 million tonnes per annum as well as pulp from 0.11 to 0.2 Bone Dry Million Tonnes Per Annum in their Orissa Plant i.e. JK Paper Mills in village Chandili, District Rayagada, Orissa. It will be done by replacement of some of their old machines with in the existing mill area.

1.2

Location and communication The J. K. Paper Mill is situated at village Chandili, District Rayagada in Orissa. The plant area is bounded by Latitudes 19 14 19 to 19 15 24 N and Longitudes 83 24 15 to 83 25 29 E. The project falls within the Survey of India Toposheet No. 65 M/7 and 65 M/8. The project is accessible by all weather roads from the district head quarter Rayagada, at a distance of 10 kms from the project site. The nearest railway is Singapuram Road Railway station at a distance of 1.15 km, North West. The nearest airport is Vishakhapatnam at a distance of 170 km in South direction. The location of the project can be seen in Fig 1.

2.0 2.1

PROJECT DESCRIPTION Plant Layout The proposed project does not involve any further land acquisition as it has been intended to replace and expand the existing capacity on the same land area of 659.93 acres. Present and proposed land use is given in Table 1.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd.

TABLE 1 PRESENT AND PROPOSED LAND USE OF PROJECT AREA Sl. Description Present Land Use Land use After Expansion No. Area (Acres) % age Area (Acres) %age 85.96 13.03 1 Plant facility 68.66 10.40 56.47 8.56 2 Ash disposal area 41.64 6.31 3.51 0.53 3 Fuel storage area 2.27 0.34 13.29 2.01 4 Water storage area 12.8 1.94 0.63 0.09 5 Hazardous waste area 0.33 0.05 6 Hazardous chemical 0.246 0.04 0.25 0.04 storage area 41.86 6.34 7 Other storage area 30.079 4.56 30.78 4.66 8 Approach road 24.842 3.76 90.89 13.77 9 Township 90.61 13.73 299.06 45.32 10 Green belt 351.21 53.22 11 Other (Ravines & vacant 37.24 5.64 37.24 5.64 area) 659.93 100.00 Total 659.93 100.00 However, the proposed project is going to acquire 150 acres apart from existing land of 659.93. The extra land will be used for development of Green Belt, Mist Chamber, Agro Economic Research Centre (AERC) & R & D Centre for plantation and tree improvement centre (TIC). Expansion Cum Modernization of Paper and Paper Board of existing capacity shall be on the existing land area of 659.93 acres. 2.2 Process Description Expansion at JK Paper Mills will involve the latest process features in pulping and paper making. Some of the existing sections of mill will be retained and augmented to cater to the requirements for the enhanced capacity. Raw Material Preparation: The raw material primarily comprises of 95% wood and 5% bamboo. Wood mainly used is Casuarina, Eucalyptus, Subabul and Sal. Presently, the raw material preparation involves chipping of tree trunks into small sizes of about 15 mm to 25 mm long and wide and 2 to 5 mm thick. The chips are then screened and small chips are removed for further processing, while oversized are again subjected to chipping. The screened out chips are conveyed to the chip silo through conveyors. Chipping operation is carried out with the help of drum chippers of Vecoplan make. For enhanced capacity, the existing drum chippers will be retained. Additionally, new disc chippers will be installed for the increased requirement of chips along with a new screening system and a higher capacity chip silo. Fibre line (Pulping and bleaching): The chips from chip silo will be conveyed to the new Digester System for cooking, carried out at 160C
Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa 1

Min Mec Consultancy Pvt. Ltd. temperature for 4 hours, whereby the unwanted materials, like lignin and hemicellulose gets removed from the material. The unbleached pulp produced from the cooking plant will be further processed in the downstream sections of the new 0.2 MTPA (BD) fibre line. The fibre line will be designed to process fully bleached mixed tropical hardwoods for a target brightness of 90% ISO. Recovery section: The weak black liquor generated from the cooking plant will be processed in a completely new soda recovery plant. It will be concentrated in the new single street evaporator line with high steam economy. The liquor from the recovery boiler is treated with lime to regenerate the cooking chemicals in the modern recausticizing plant. The lime sludge generated as a byproduct from the recausticizing operation will be processed in the lime kiln. A new 300 TPD lime kiln has been proposed to be installed for processing the lime sludge to be generated in the recausticizing operation and the existing 165 TPD lime kiln plant shall be phased out. Paper machine section: The bleached pulp from the fibre line will be utilized to manufacture paper on the new paper machine as well as on the existing PM-I and PM-III. The new paper machine will produce 150,000 tonnes per annum cut size copier and office papers, which will include papers for laser and inkjet printing. Finishing house: The manufactured paper will then be converted into reel or A4 sheets depending on the market demand. In view of the increased copier production, 2 Nos. of 75,000 tonnes per annum of 10 pockets cutter with packing have been envisaged. The existing 2 Nos. of cutter will also be retained. 2.3 Raw material Requirement The major source of raw material for the proposed project has been destined to be Andhra Pradesh. The bamboo, which is used in very low quality is sourced from Orissa only. Chemicals used include Caustic lye, HCI DM Grade, Hydrogen peroxide (50%), Sodium Sulphate, Non-Ferric alum, Precipitate calcium carbonate and Starch. Total coal requirement is 2.28 lakh tonnes per year. 75% is sourced as linkage coal, and 25% will be obtained from open market and E-auction. 2.4 Site services Total power requirement is projected to be 48.5 MW. To meet the power requirement it is envisaged to put up a new power plant with high pressure boiler and turbine, which will completely replace the existing power plant. The total water requirement of the mill after its expansion including the requirement for the existing colony works out to be 31,960 m3/ day. The source of water for the project is Nagavali River passing east of the project site. Number of working days in a year are 365 and there are 3 shifts each of 8 hours.
Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa 2

Min Mec Consultancy Pvt. Ltd.

2.5

Manpower The number of persons to be employed for the construction purpose works out to be about 1500 to 2000. During operation phase 753 persons will be employed.

3.0 3.1

PRESENT ENVIRONMENTAL SCENARIO Topography & drainage The study area including the mill area represents hilly and undulating topography with high relief. The maximum elevation observed is 2667 m RL west of the plant. The study area forms a part of Nagavali River, which is perennial river receiving water from ground water resources during the summer season. The regional slope is towards south. The river cuts across deep valley through the central parts of the study area. The plant is located on the right bank of river Nagavali. Many natural streams originating from the hilly region on either side join Nagavali River draining off the heavy storm water generated during the monsoon season. Some of the important streams are Pettesu, Nimmana, Sirikona on right bank and Sita Gedda on left bank.

3.2

Climate & micro-meteorology The climate of the study area is of subtropical type and is characterized by an oppressive hot summer, a mild winter and well distributed rainfall during the south western monsoon season. Long term meteorological data for Koraput meteorological station in Orissa for the 30 years period, i.e., from 1951 to 1980, have been collected from India Meteorological Department. Average annual rainfall is 1550.8 mm. Minimum and maximum temperatures recorded are 17.2C and 28.1C, respectively. The relative humidity varies from 40% to 87%. Micro-meteorological survey was conducted 3 months comprising one full summer season from March to May 2010 as well as September, 2010. Temperature varied from 16.50 to 42.80 C with an average of 27.23 C, relative humidity between 48.10% and 99.80% with an average of 82.02%, wind speed from calm to 13.80 km per hour with an average of 3.38 km/hour and predominant wind direction was WSW (22.87%).

3.3

Ambient air quality Eight air sampling stations were established in the study area including one in core zone and seven in buffer zone during monitoring period. The observed values of PM10 ranged from 29.3 to 98.3 g/m3, of PM2.5 ranged from 13.8 to 56.3 g/m3, SO2 between BDL to 18.0 g/m3 and NOX between BDL to 16.2 g/m3., of CO ranged from BDL to 0.18

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd. g/m3, O3 between 0.002 to 0.010 g/m3 and Pb ranged from BDL to 0.051 g/m3. 3.4 Water environment The river Nagavali has a large catchment area covering part of Kalahandi district in west and nearly half of the district Rayagada. Since the entire catchment is hilly, the overland flow is huge. However during summer season, though the flow reduces but the volume is sufficient enough for the mills use as well as use by the villages nearby. The entire study area is underlain by hard and compact granite as well as granite gneiss under a thin layer of fluvial sediment. The average water table depth varies from 8.2 m bgl during post monsoon season to 11.5 m bgl during pre-monsoon season, rendering seasonal fluctuation as 3.3 m throughout the year. In the study area annual ground water resource is 67.02 MCM and utilization is 11.55 MCM. Annual Balance Groundwater is 55.47 MCM. Water Quality tests were conducted from 8 ground and 8 surface water samples. The ground and surface water quality of the study area is observed to be potable and hardness of water is within the permissible limits of the drinking water standard. 3.5 Land use pattern and soil quality Total area of core zone is 659.93 acres. Out of the total land, about 635.26 acres belonged to Government land, whereas the rest 24.67 acres were private owned land. According to 2001 census 152 villages falls in 2 district in buffer zone. 35.10% of the total study area is not available for cultivation, unirrigated agricultural land comprises about 30%, while irrigated land is only 3.4%. The culturable waste land occupies about 4% and the rest 27.5% is forest land. Samples were drawn from two locations one in core zone and one around the plant site. The soil in general is loamy. The soils around lagoon, effluent bund as well as in Chandili village are acidic in nature, while in other two spots they are normal. The soils of core zone, Chandili village and Komatalapeta are deficient in organic content and phosphorus. Conductivity of soil samples is normal. 3.6 Noise and traffic density Ambient noise level were studied at nine locations and was found to be between 33.2 and 53.90 dB(A) during day and 27.0 and 50.6 dB(A) during night.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd. A traffic volume survey was conducted round the clock on 21- 22 September 2010 on JK road at Amla Bata centre and total vehicles were 1162 excluding cycles. On 23- 24 September 2010, traffic monitoring was done at Jaykaypur to Rayagada road and total number of vehicles were 1831 excluding Cycles. 3.7 Ecology In the buffer zone, the reserve/protected/ village forest cover is 100.56 sq. km. i.e. about 27.73% of the total area. There is no National Park, Wildlife Sanctuary, Biosphere Reserve, Tiger Reserve, Elephant Reserve or Corridor within the study area. The forest of this division can be broadly classified into Sal forests and miscellaneous forests. They are again grouped into 2 main types which are North Indian Tropical Moist Deciduous Forest (3/C) and Northern Tropical Dry Deciduous Forests (5B) types as per revised classification of Champion and Seth. Shorea robusta, Phyllanthes emblica, Terminalia tomentosa, Anogeissus latifolia, Albizia procera, Pongamia pinnata, Cassia fistula are predominant species in the study area. Several wildlife crossings and movement zones are present across SH4 passing Bangi Jn to Rayagada via Jaykaypur as well as SH5 passing from Jaykaypur to Bhawanipatna through Muniguda for wild boar, sloth bear, deer, sambar etc. Also an elephant corridor connecting Chandrapur Reserved forest in Rayagada to Lasserry Reserved forest in District Kalahandi is situated about 60 kms away from the project site in its north direction. 3.8 Socio-economic condition There is no habitation within the project area as the mill is already an existing entity. Total population of the villages in the buffer zone is 142691. The main workers, marginal workers and non workers constitute 29.13%, 9.07% and 61.81% of the total population, respectively. The strength of schedule caste 11.12% categories is lower than the schedule tribe 34.00%. Literacy rate is 48.82%. 3.9 Industries and Places of tourism/ religious/ historical interest There are few small scale industries or ancillary units in the vicinity of the project site within its 10 km radius. The most common of them are Ferro Alloys unit situated north of the mill, Alum cake factory situated at its south direction and card board as well as brick manufacturing units situated around the north east direction. There are no places of historical / tourist / religious / archaeological importance in either core zone or study area. There are local places of worship at some villages.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd. 4.0 4.1 ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION Climate Impact: The proposed project will be restricted to expansion, modernization and replacement of certain machineries and equipments with modern one utilizing same area of land. Thus, no adverse impact on climate and meteorology of the area is expected. Mitigation: The climate of the area is mainly controlled by pressure depressions in the Bay of Bengal and is not anticipated to be affected by local activities under discussion. Therefore no mitigation measures are needed to be taken. The company has taken various steps to adopt Clean Development Mechanism. It started CDM project in association with VMSL (Veda Macs Society Limited) in the year 2004. 4.2 Air environment Impact: The source of air pollution during the construction phase will be mainly the vehicle exhausts emanated due to transportation of equipments and machineries to the plant site and vice versa. Primary impact due to transportation activity on air quality will be high dust generation resulting into increased SPM levels in the surrounding areas. Mitigation: The paper mill is proposed to be designed for the production of 0.26 Million Tonnes per annum of paper and paper board. As the site is already established and the mill is ongoing, no such pollution is envisaged during construction phase. However, the pollution due to construction equipment and transport vehicles will be minimized by sprinkling of water on the carriage roads. Also regular maintenance schedule of the vehicles will be adopted. Moreover, pucca roads are present within the premises, which aids in limiting the generation of particulate matter. For the proposed expansion project, two new ESPs for coal fired boiler 6 and liquor fired boiler 6 with 99.5 and 99.7% efficiency respectively have been proposed and one bag filter with 99.8% efficiency has been proposed for the lime kiln unit. 4.3 Water environment Impact: During construction phase, the sheet flow of run off water will be interrupted due to construction of buildings, digging of foundations, storage of construction material etc for which storm water drains are being constructed. During the operation phase, the surface water resources may get contaminated due to discharge of mill effluent as well as sewage water generated from the colony. Some amount of oil/ grease is likely to be released from the maintenance workshop for equipment and vehicles washing. Mitigation: Effluent from the entire plant is well treated and some of the treated effluent reused within the project area to minimise the
Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa 6

Min Mec Consultancy Pvt. Ltd. requirement of raw water. The total water requirement of the mill after its expansion including the requirement for the existing colony works out to be 31,960 m3/ day, which will be sourced from Nagavali River. The excess bio sludge is removed through secondary clarifier to sludge drying bed. During the operation there will not be any direct contact between shallow water table and effluent/ slurries. Hence ground water pollution due to the paper mill is avoided. JKPM has adopted Rain Water Harvesting technology for the conservation of natural resource by recharging the rain water back to ground with the help of some wells or pits inside the mill premises. JKPMs main motto is to recharge 100% of rain water from mill as well as colony within year 2012. 4.4 Noise, traffic density and vibration Impact: The noise level during construction period will be due to construction machinery, which is of temporary nature, the unpleasant effects of which will be controlled by appropriate mitigation measures. The predominant noise generated during operation phase is occupational noise that is confined within the plant premises. Mitigation: Noise control/suppression systems have been provided within the plant premises. The equipments are provided with acoustic shields or enclosures to limit the sound level inside the plant. The green belt encompassing about 45% of the area also helps to prevent noise generated within the plant from spreading beyond the plant boundary. 4.5 Topography and drainage Impact: The proposed assignment is basically an expansion cum modernization project. In majority of the portion, the land use will remain same. Only replacement of some machineries and equipments will take place. During construction phase, the sheet flow of run off water will be interrupted due to construction of buildings, digging of foundations, storage of construction material etc. Mitigation: The impact on topography that might had been caused during its development phase has already been managed by the provision of proper storm water drains, pits for recharging groundwater, about 53% of green belt area, proper waste storage area, etc. The surface run-off and the storm water being generated out of the plant area are directed to the rainwater recharge pits provided within the plant site. 4.6 Land Environment Impact: The total land area occupied by the existing plant and proposed will be project is about 659.93 acres. Acquisition of 150 acres land is proposed for development of Green Belt, Mist Chamber, Agro Economic Research Centre (AERC) & R & D Centre for plantation and tree improvement centre (TIC). Sufficient green area has been provisioned in
Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa 7

Min Mec Consultancy Pvt. Ltd. the project area. Also to stabilize the fly ash dump sites, plantation has been developed over the dump. Mitigation: the landscape of the area has been improved due to the better management practices adopted by the organisation. As all the activities related to the project are restricted to the core zone, no impact on the buffer zone land use has been encountered. 4.7 Solid waste Impact: The solid wastes are mainly the remnants and pieces of wood, bamboo, sludge generated out of various units, fly ash, NFL rejects etc. 14353 TPA of Bamboo & hard wood, 97300 TPA of fly ash, 7750 TPA of effluent sludge, 9850 TPA of lime sludge, 12620 TPA of Fibre Line rejects and 13759 TPA of slacker sludge will be generated. Mitigation: Effluent and white sludge will be used for card board / egg tray and low grade paper manufacturing industries as their raw material, secondary sludge is being used as manure by local farmers, lime sludge is processed through Lime Kiln Plant to regenerate Lime and oily sludge is being burnt in the boilers. However, till such measures are in place, provision is being made to provide Ash dyke to contain the generated ash. 4.8 Ecology Impact: Bright light and unusual noise during construction and operation activity may shift the activity site of the birds and animals to little away from the location of plant site. Mitigation: JK Paper Mills has put in pioneering efforts amongst the paper industries in India using pulpwood derived from plantations grown by farmers mainly in the states of Orissa and Andhra Pradesh. Till date, more than 56000 ha of land has been engaged in developing plantations and they have around 42,000 farmers as partners in this endeavour. JKPL has taken initiative to produce improved quality seed through its own Seed Orchards of clonal plants. Exclusive Clonal Seed Orchards have been established in an area of 20 acres which are producing genetically improved high quality seeds of Eucalyptus and provides a steady supply of seeds to JKPL. 4.9 Socio-economics Impact: Almost 1500 to 2000 manpower strength is estimated to be involved during the construction period. Most of them will be drawn from the surrounding villages. The total manpower required during operation stage after expansion has been estimated to be about 753, who will be readjusted and reorganized from the existing strength of workers. No family is expected to be displaced from the core zone.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

Min Mec Consultancy Pvt. Ltd. Mitigation: The general social development of the area has already taken place due to the improvements in infrastructure and communication system. New facilities, like roads, healthcare units, educational institutions etc. have been created to meet growing demand of the population. This has a positive impact on the current literacy level, primary and middle level education and on existing health facilities. Necessary construction facilities, such as offices, stores, sheds, etc., will be constructed as per requirement for successful completion of the plant. 4.10 Occupational health The workers engaged in high pollution generation area are equipped with appropriate protective equipment. The company has a separate department called welfare department which does periodic health check up and collection of health statistics of the workers. Under the administration department, there is a medical centre which is equipped for occupational health testing. Specialists are periodically visiting the mill as well. 5.0 ANALYSIS OF ALTERNATIVE The proposed project is located at village Chandili, District Rayagada in the state of Orissa. The mill is already operating since 1962, hence, no alternative sites have been considered for expansion. From the point of view of utilizing common infrastructure and costs, modernizing the present facility with expansion is a feasible proposal. The raw materials, like wood and bamboo are easily procured from the nearby states of Andhra Pradesh, Chhattisgarh and West Bengal, while coal is procured from Mahanadi coalfields. Hence, the raw materials are available in the close vicinity of the project site. After analyzing several alternative layouts, the chosen one (Fig 2.1 of EIA report) was finalized. 6.0 ENVIRONMENTAL CONTROL AND MONITORING ORGANIZATION A full fledged Environment Management Cell (EMC) exists with multidisciplinary team of professionals, technical staffs and all necessary infrastructures, headed by Executive Vice President (works). The total investment on environmental improvement works is envisaged as Rs. 32,402 Lakhs. Other than power consumption, the repair and maintenance expenditure is to the tune of 5-10% of the total investment. The green belt investment of Rs. 23.72 lakhs is for the first year and the same shall be incurred subsequent years also. 7.0 DISASTER MANAGEMENT PLAN Pulp & paper mill pose fire, electrocution and explosion hazards. In the pulp and paper making, several types of chemicals are used. Many of them are harmless some chemical have harmful effects of varying
Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa 9

Min Mec Consultancy Pvt. Ltd. degrees. A full-fledged Environment Management/ Disaster Management Cell manned by trained personnel has been established for the mill. The cell supervises the overall monitoring activities. 8.0 PROJECT BENEFITS The mill is already in operation since 38 years and the expansion has been proposed to be carried out on the same piece of land. The economic growth of the area in terms of employment generation, consumption behaviour and market-growth is already a noteworthy outcome of the project, which is expected to get improved due to the modernization and upgradation of the mill. The kind of activities undertaken by the company are in the field of education, adult literacy, sports, skill enhancement programs for adolescent girls from underprivileged class of society, scholarships, employment opportunities to the unemployed youth in the vicinity, health care, infrastructure development and basic amenities, constructions and repair of places of worship, relief during natural calamities, etc. In order to further reinforce the commitment towards Corporate Social Responsibility, JKPM have started a Tailoring & Embroidery Training Centre in their premises for adolescent girls of underprivileged class of society from 6th July 2009. CSR initiatives have also been made through two NGOs, namely, Sparsh and Harsha. 9.0 DISCLOSURE OF CONSULTANTS ENGAGED Min Mec Consultancy Pvt. Ltd was registered in July 1983 with the Registrar of Companies, Delhi & Haryana, India. In 1994, Min Mec established a modern R & D laboratory which was accredited under Environment Protection Act (EPA) by Ministry of Environment and Forests, Government of India. On 02.02.2003, Min Mec received ISO 9001:2000 certification under ANZ-JAS. In June, 2006, the laboratory received accreditation from NABL.

Executive Summary for Expansion cum Modernization of JK Paper Mill, Rayagada, Orissa

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