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PRE FEASIBILITY REPORT

For

PROPOSED EXPANSION OF NICOTINE SULPHATEIN EXISTING PLANT

of

M/s. Nisol Manufacturing Company Private Limited.Survey No.114/115 P, Village: JAHAJ-388580,

Dharmaj - Khambhat Road, Ta: Khambhat,Dist:Anand (Gujarat)

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CONTENTS

Sr. No. Description Page No.

1. Executive Summary 2

2. Introduction of the Project/Background

information

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3. Project Description 5

4. Site Analysis 12

5. Planning Brief 13

6. Proposed Infrastructure 14

7. Rehabilitation and resettlement (R & R) Plan 15

8. Project Schedule & Cost Estimates 16

9. Analysis of Proposal (Final Recommendations) 16

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1.0 EXECUTIVE SUMMARY1.1 Company ProfileNISOL MANUFACTURING COMPANY PRIVATE LIMITED is a private company registered

on 04/06/2007. Its registered office is situated at Ranchod Krupadharmaj, Taluka: Petlad,

Anand, Gujarat, India-388430.

Nisol follows good agriculture and collection practices in adherence with WHO

recommendations. These guidelines ensure the safety, traceability and quality of the

products being collected, harvested and produced.

1.2 Project Details1.2.1 Products along with Production CapacitySR.NO.

Name ofProducts

USE CAPACITY (MT/MONTH)

EXISTING PROPOSED TOTAL

1. NicotineSulphate(40%)

Used to makeanti-smoking

products as perUSP Standards

50 50 100

2. Spent tobacodust

Used as de-weedicides &

wormi compostmix

2064 6436 8500

Total 2114 2114 8600

1.3 Raw Material Requirement

SR.NO.

NAME OF RAW MATERIALS QAUNTITY(MT/MONTH)

1. Tobaco Dust (10%) 8500

2. Hydrated Lime 3500

3. Solvent (Kerosene) 20

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1.4 Water Requirement, Waste Water Generation and TreatmentTotal water requirement will be 131 m3/day which will be met through Ground Water. Total

wastewater generation will be 63 m3/day.

Note: a) 45.0 KL/Day from process & washing will be reused back in process.b) 5.0 KL/Day from RO used in flushing purpose.c) 13.0 KL/Day Domestic Wastewater will be disposed off in septic tank & soak pit.

1.5 Air Pollution Source and Control ManagementThere will be no flue gas emission and process gas emsision.

1.6 Hazardous WasteCAT.NO.

HAZARDOUS WASTE EXISTING PROPOSED

TOTAL METHOD OF DISPOSAL

33.3 DiscardedBag

-- 10000 Nos./Month Collection, Storage, Decontamination,Transportation, Disposal by sellingto authorized recycler

5.1 Used Oil -- 10 Liters/Month Collection, Storage, Transportation,Disposal by selling to authorizedrecycler

1.7 Green BeltCompany has already developed 20000 m3 areas (40%) for greenbelt.

Total Nos. of Trees: 2000

1.8 Power & Fuel RequirementsS. No. Particulars RequirementPower1 Power Requirement 200 KVA (Existing -50 KVA + Proposed -150 KVA)2 Source of Supply MGVCL3 D.G.Set Existing -50 KVA + Proposed -150 KVAFuel1 Fuel & IT’S Consumption Diesel - 25 Liter/Hr (Emergency)2 Source of Supply Nearest Supplier

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2.0INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION2.1 Identification of the project and project proponent. In case of miningproject, a copy of mining lease/letter of intent should be given.Identification of the projectProposed Expansion of Nicotine Sulphate in Existing Plant

Identification of the project proponentThe detail of project proponent is as below:1. Mr. Ashish Patel (Managing Director)2. Mr. Ajay Patel (Director)

2.2 Brief description of nature of the ProjectProposed Expansion of Nicotine Sulphate in Existing Plant

2.3 Need for the project and its importance to the country and or regionThere is a good potential for us to fulfill the need of domestic market as well as contribute in

earning foreign Exchange.

2.4 Demands-Supply GapBased on our informal survey of the market with our current customers and various traders,

we have found that there is a big potential for the range of the products we are planning.

2.5 Imports vs. Indigenous productionBased on the current cost of indigenous raw materials and the non availability of some

materials, we will have to import some of the key raw materials as they are not available

indigenously. This will make us very competitive against imported finished products and we

will export our finished products in the international market.

2.6 Export possibilityWe shall explore the possibility of export (100%) the products. It will be a 100% EOU, with

an annual production of 200-300 tonnes of Nicotine Sulphate 40%.

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2.7 Domestic/Export MarketsThe two main Countries producing Nicotine Sulphate are India & China. However the Indian

manufacturers have an additional advantage in the manufacturing of the Final product

Nicotine Sulphate. This is because of Two Main reasons:

(1). The Huge Network Established with the local tobacco growing farmers, for the tobacco

dust collection,

(2). The Nicotine Content in the Tobacco leaf grown in the region.

These two are the main reasons as to why India (Mainly Gujarat) has an upper edge for

manufacture and sale of the above product.

The International Market has at the moment one and only main use of Nicotine Sulphate,

and that is for Smoking Cessation Products. The Nicotine Sulphate is used as an active

pharmaceutical ingredient (API) to manufacture pure Nicotine, which is used in Chewing

gums, Nicotine patches, Lozenges, and Nasal sprays.

2.8 Employment Generation (Direct and Indirect) due to project.M/s. Nisol Manufacturing Company Private Limited will give direct employment to local

people based on qualification and requirement. In addition to direct employment, indirect

employment shall generate ancillary business to some extent for the local population.

3.0 Project Description3.1Type of Project including interlinked and interdependent projects, if any.No interlinked project has been submitted.

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3.2Location (map showing general location, specific location and project boundary & project site layout) withcoordinates.

Map showing general location

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Specific location and project boundary

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Plot Layout

N

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3.3 Details of alternate sites considered and the basis of selecting the proposed site,particularly the environmental considerations gone into should be highlighted.Major factors involved in the selection of site are listed below: Site is very well connected by road Proximity to Raw Material suppliers Availability of sufficient land free from cultivation Availability of power evacuation facilities Availability of water for industrial useModern infrastructure support and amenities at par with industrial estates in other globalmarkets, including: Efficient transport facilities within the industrial estate and to & fro the city area. Environment-friendly zone. Uninterrupted power supply.

3.4 Size or Magnitude of OperationPlease refer Section-1.2.1, Page No. 2.

3.5 Project Description with process details (a schematic diagram/flow chart showingthe project layout, components of the project, etc. should be given)Please refer Please refer Form-I, Annexure-III.

3.6 Raw Material required along with estimated quantity, likely source, marketing areaof final product/s, mode of transport of raw material and Finished product.For raw material required along with quantity; Please refer Section-1.3, Page No. 3.

We shall procure the raw material as much as possible from domestic market. We shall

explore the possibility of export (100%) the finished products.

3.7 Resource optimization/recycling and reuse envisaged in the project, if any, shouldbe briefly outlined.It will be incorporated in EIA Study.

3.8 Availability of water its source, energy/power requirement and source should begiven.Water SourceTotal water requirement shall meet through Ground Water.

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Power & Fuel RequirementS. No. Particulars RequirementPower1 Power Requirement 200 KVA (Existing -50 KVA + Proposed -150 KVA)2 Source of Supply MGVCL3 D.G.Set Existing -50 KVA + Proposed -150 KVAFuel1 Fuel & IT’S Consumption Diesel - 25 Liter/Hr (Emergency)2 Source of Supply Nearest Supplier

3.9 Quantity of wastes to be generated (liquid and solid) and scheme for theirmanagement/disposal.Please refer Form-I, Annexure- V.

3.10 Schematic representations of the feasibility drawing which give information ofEIA purpose.

RECONNAISSANCE SURVEY OF EXISTING PLANTANNUAL REPORTMARKET ASSESSMENTFINANCIAL REPORTPROJECT REPORT

INTRODUCTION

MONITORING OF AIR, WATER & SOIL QUALITY & NOISELEVELS. DATA ON METEOROLOGY SOCIO-ECONOMIC STATUS& BASIC AMENITIES. SITE VISITS BY AND INTERVIEWS WITHLOCALS

BASELINEENVIRONMENTAL

STATUS

ENVIRONMENTAL INFORMATION CENTRECENTRAL GROUND WATER BOARDGUJARAT POLLUTION CONTROL BOARD (GPCB)PUBLIC HEALTH ENGINEERING DEPT.AGRICULTURE DEPARTMENTFOREST DEPARTMENTIRRIGATION DEPARTMENTEMPLOYMENT EXCHANGEHEALTH CENTERCENSUS DEPT.INDIAN METEOROLOGICAL DEPT.

SOCIOECONOMICSTATUS &

INFRASTRUCTURE

PROPOSED EXPANSIONPLANT

FACILITY DESCRIPTION

IMPACTSMETHODOLOGY OF

IMPACTASSESSMENT

IDENTIFICATION & ASSESSMENT OF IMPACTSEVALUATION OF IMPACTS BY MATRIX METHOD

SOURCE OF INFORMATIONOVERVIEW OFE. I. A. STUDIES

ACTIVITIES

ENVIRONMENTALMANAGEMENT PLAN

DESCRIPTION OF EFFLUENT TREATMENT PLAN, AIRPOLLUTION CONTROL, HAZARDOUS WASTE MANAGEMENT,GREEN BELT DEVELOPMENT MONITORING PROGRAM

RISK ANALYSISSTUDIES &DISASTER

MANAGEMENT PLAN

SAFETY, HEALTH & ENVIRONMENTAL POLICY, GUIDELINES BYDIRECTOR GENERAL OF FACTORY SAFETY, MINISTRY OF LABOR.CONSEQUENCE ANALYSIS

PREPARATION OF DISASTER MANAGEMENT PLAN

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4.0 Site Analysis4.1 Connectivity

Site is very well connected by road

Availability of water, power, etc.

4.2 Land Form, Land Use and Land OwnershipIt will be incorporated in EIA Study.

4.4 Existing land use pattern (agriculture, non-agriculture, forest, water bodies(including area under CRZ)), shortest distances from the periphery of the project toperiphery of the forests, national park, wild life sanctuary, eco sensitive areas, waterbodies (distance from HFL of the river), CRZ. In case of the notified industrial area, acopy of the Gazette notification should be given.It will be incorporated in EIA Study.

4.5 Existing InfrastructureThis is proposed project activity in existing premises so now there is only open land.

4.6 Soil ClassificationIt will be incorporated in EIA Study.

4.7 Climatic data from secondary sources.Climatic data from primary as well as secondary sources will be incorporated in EIA Study.

4.8 Social infrastructure available.Various Programs/ Projects related to Social & Economic development of surroundedarea has been planned, which are as follows.A) Natural Resource Management – The main focus of this program will be to maximize the

yield returns of the farmers through efficient management of existing resources & extension

of new agricultural practices.

1) Integrated Agricultural Growth Project – For improvement and use of the modern

techniques and thereby would certainly contribute to prosperity in the agriculture

sector and reduce the rural poverty by programs like Farmers Training, Nursery

Growing Trainings, Modern agriculture equipment distribution programs etc.

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2) Animal Husbandry Projects – Various programs like health checkups & treatment,

vaccination program, Anti sterility camps, breed improvement etc. will be carried out.

B) Income Generation Program -

1) Establishment of Self help groups.

2) Rural Entrepreneurship Development Program

3) Handcrafts Development Program

4) Vocational Training

5) Business process outsourcing

C) Health, Education & Infrastructure

1) Aids Awareness Program

2) General Health Camps

3) Innovative Teaching Methods

4) Adult Education

5) Sanitation

6) Infrastructure Development Projects

7)

5.0 Planning Brief5.1 Planning Concept (type of industries, facilities, transportation etc) Town andCountry planning/Development authority classification.Type of Industry: Proposed Expansion of Nicotine Sulphate in Existing Plant

5.2 Population ProjectionIt will be incorporated in EIA Study.

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5.3 Land use planning (breakup along with green belt etc.)

5.4 Assessment of Infrastructure Demand (Physical & Social)

Employment would be as per prevailing norms of state government for skilled and

unskilled people for the proposed project activity.

Social Welfare

Cordial relation with the industry shall be established and representation shall be made

to villagers for help for creation of facilities related to health, education, etc.

5.5 Amenities/FacilitiesIt will be incorporated in EIA Study.

6.0 Proposed Infrastructure6.1 Industrial Area (Processing Area)Processing Area (Plant facilities and Engineering / Utility Services)

Developed Area: 4500 m2

6.2 Residential Area (Non Processing Area)Non Processing Area (Green belt, Raw material storage area, finished storage area,

Administration Building, Parking, road and open area)

Area: 41950 m2

6.3 Green BeltCompany has already developed 20000 m3 areas (40%) for greenbelt.

Sr. No. Details Area (m2)1 Parking 1002 Office 1503 D.G.Set 3004 Cooling Tower 3005 Tank Farm Area 1206 Raw Materials & Products Storage

Area3946

7 Existing Manufacturing Unit 25008 Proposed Manufacturing Unit 10009 Green Belt 2000010 Road 210011 Open Area 15934Total 46450

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Total Nos. of Trees: 2000

6.4 Social Infrastructure

Power supply by MGVCL

6.5 Connectivity (Traffic and Transportation Road/ Rail/Metro/ Water ways etc)Major factors involved in the selection of site are listed below:

Site is very well connected by road

Proximity to Raw Material suppliers

Availability of sufficient land free from cultivation and will have single crop pattern

Availability of power facilities

Availability of water for industrial use

6.6 Drinking water Management (Source & Supply of water)Total water requirement shall meet through ground water.

6.7 Sewerage SystemSewage pipes would be laid in entire company for the removal and disposal of mainly non-

harmful liquid wastes from the offices, canteen and domestic waste coming from different

sections of industry. These liquid wastes would be sent to septic tank & soak pit.

6.8 Solid Waste ManagementPlease refer Form-I, Annexure-V.

6.9 Power Requirement & Supply/SourcePlease refer Section 1.8, Page No.3 of this report.

7.0 Rehabilitation and Resettlement (R & R) Plan7.1 Policy to be adopted (central/state) in respect of the project affected includinghome oustees, land oustees and landless laborers (a brief outline to be given)There is no habitation on the proposed expansion project activity area and it is open non-

agricultural land, so R & R policy is not applicable to this project.

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There shall not be displacement of any population in project area. Any major activity that

may lead to resettlement of the people is considered as permanent impact. Hence, there is

no permanent impact on this account. The increasing industrial activity will boost the

commercial and economical status of the locality up to some extent.

8. Project Schedule & Cost Estimates8.1 Likely date of start of construction and likely date of completion (Time schedulefor the project to be given).We shall start construction of the project after getting EC & CTE. We shall start

manufacturing after applying for CC&A.

8.2 Estimated Project cost along with analysis in terms of economic viability of theproject.Total Project Cost for proposed project activity is Rs. 10 Crores. Capital cost of air & water

pollution control system and environmental monitoring equipments will be Rs. 40 Lakh.

9. Analysis of Proposal (Final Recommendations)9.1 Financial and social benefits with special emphasis on the benefit to be localpeople including tribal population, if any, in the area.

Employment would be as per prevailing norms of state government for skilled and

unskilled people for the proposed expansion project.

Social Welfare shall be done.

Cordial relation with the industry shall be established and representation shall be made

to villagers for help for creation of facilities related to health, education, etc.