Post on 06-Aug-2020
Pathway to Eco Industrial Development in IndiaConcepts and Cases
120914_Pathway_EID_ISOX3uncoated.indd 1 04.10.12 15:08
Imprint
Published byDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Dag-Hammarskjöld-Weg 1-565760 Eschborn, GermanyPhone: +49 61 96 79-0Fax: +49 61 96 79-11 15
Email: info@giz.deInternet: www.giz.de
3rd Floor, B5/2 Safdarjung EnclaveNew Delhi 110 029, IndiaPhone: +91 11 49495353Fax: +91 11 49495391
Internet: www.asemindia.com
Responsible: Dr. Dieter Mutz
Concept, lead authors, editing: Nukala Raghu Babu, Anna Katharina Meyer
Contributions:Christoph Genter, Hrishikesh Mahadev, Pradip Nadkami, Preeti Negi, Katharina Pannwitz, Nitesh Patel, Bineesha Payattati, Nishtha Prakash, Lalit Sharma, N.K. Verma
Thanks to all interview partners.
Photographs© GIZ© iStock Photo, shutterstock, creative republic,
Gujarat Cleaner Production Center
Design & Illustrationscreative republic // Thomas Maxeiner KommunikationsdesignFrankfurt am Main / contact@creativerepublic.net
New Delhi, 2012
120914_Pathway_EID_ISOX3uncoated.indd 2 04.10.12 15:08
Pathway to Eco Industrial Development in IndiaConcepts and Cases
120914_Pathway_EID_ISOX3uncoated.indd 3 04.10.12 15:08
4 Foreword
FOREWORDDr. Tishya Chatterjee, MoEF
Dr. Dieter Mutz, GIZ
India is becoming one of the fastest growing economies in the world. With new policies such
as the National Manufacturing Policy, the Government of India envisions to increase the manu-
facturing sector’s contribution to GDP by 25 %. This goal is to be achieved by 2022, together
with an increase of competitiveness as well as double the employment in this sector. This clearly
shows that the industrial sector in India will assume more importance than ever before.
However, the last few decades have made it evident that economic development does not
happen in isolation from environmental protection and social progress.
Technological progress, globalisation of trade and commerce, a growing knowledge base as
well as active participation of the civil society need to come together to achieve sustainable
development.
Eco Industrial Development is a promising strategy for promoting sustainable industrial develop-
ment, while tackling environmental, economic and social aspects in a balanced manner. The
Indian Government has taken many initiatives in this regard. The Deutsche Gesellschaft für Inter-
nationale Zusammenarbeit GmbH (GIZ), under the Indo-German Development Cooperation has
been actively providing technical assistance to the Indian Government for over a decade now.
The publication on Pathway to Eco Industrial Development in India effectively highlights various
areas of work with specific examples of the achievements in sustainable development.
I believe the publication will help in over-viewing the pathway taken so far on Eco Industrial
Development in India and subsequently to strategise future course of action.
Dr. Tishya Chatterjee
120914_Pathway_EID_ISOX3uncoated.indd 4 04.10.12 15:08
5
India, a fast developing country, faces the challenge of balancing rapid development with
sustainable inclusive growth. Technological progress, a growing knowledge base, active partic-
ipation of the civil society, and international co-operation offer unprecedented opportunities
for India to meet its sustainability goals.
Germany has been cooperating with India for more than 50 years. Its international cooperation
endeavours focus on positive impacts in shaping the future. The Deutsche Gesellschaft für
Internationale Zusammenarbeit GmbH (GIZ) as the German implementing agency for inter-
national cooperation counts on longstanding partnerships in India that strive for forward-
looking, efficient, effective and sustainable solutions.
GIZ is active in a wide variety of developmental fields. For many years, it has tapped the
opportunity of turning the challenges posed by rapid industrialisation towards sustainable
development, and has adopted industrial development as one of its key areas of work.
It undertook a number of initiatives for introducing Eco Industrial Development in India under
the Advisory Services in Environmental Management (ASEM).
GIZ and the Indian Ministry of Environment and Forests developed this publication to sum up
the concept and take stock of what has been done and achieved so far. This important work
on Eco Industrial Development will continue under the Indo German Environment Partnership
(IGEP) Programme which started in March 2012 and will last until 2018.
I would like to take this opportunity to thank all of the involved national and international
experts, company representatives and officials for their valuable inputs and comments.
Dr. Dieter Mutz, GIZ
120914_Pathway_EID_ISOX3uncoated.indd 5 04.10.12 15:08
66
120914_Pathway_EID_ISOX3uncoated.indd 6 04.10.12 15:08
7
Content
FOREWORD
Dr. Tishya Chatterjee, MoEF ............................................ 4
Dr. Dieter Mutz, GIZ ....................................................... 5
1. INTRODUCTION ECO INDUSTRIAL DEVELOPMENT
1.1 Overview ................................................................. 9
1.2 Learning from International Experience ................ 10
2. THE INDIAN CONTEXT
2.1 Industrial Development in India ........................... 15
2.2 Cooperation towards EID ..................................... 16
2.3 Relevance of EID Concepts for India ................... 16
3. EID APPROACH: AT INDUSTRIAL PARK LEVEL
3.1 New Industrial Parks ............................................. 19
3.1.1 New Industrial Parks: Concept .............................. 19
3.1.2 Site Suitability Assessment: Case............................ 20
3.1.3 Environmental Impact Assessment: Case ............... 22
3.1.4 Site Master Planning: Case .................................... 24
3.2 Existing Industrial Parks ........................................ 26
3.2.1 Transformation of Existing Industrial
Parks: Concept ...................................................... 26
3.2.2 Transformation Examples: Case ............................. 28
3.2.3 Environmental Management Cells: Case ............... 30
3.3 Infrastructure Development ................................... 32
3.3.1 Waste Management: Concept ................................ 32
3.3.2 Hazardous Waste Treatment Plant: Case ............... 34
3.3.3 Formalization of E-Waste Collectors: Case ............ 36
3.3.4 Waste Water Management: Concept ..................... 38
3.3.5 Common Effluent Treatment Plant: Case ............. 40
3.4. Management Improvements .................................. 42
3.4.1 Information Systems: Concept .............................. 42
3.4.2 GIS-based Information System: Case .................... 44
3.4.3 Monitoring and Control: Case .............................. 46
3.4.5 Disaster Risk Management: Concept ..................... 48
3.4.6 Interstate considerations for
Off-Site Emergency Plans: Case............................. 50
3.4.7 Stakeholder Participation: Concept ....................... 52
3.4.8 Stakeholder Workshops for Planning
Eco Industrial Park Activities: Case ....................... 54
3.5. Climate Change Considerations ........................... 56
3.5.1 Climate Change Mitigation: Concept ................... 56
3.5.2 Public Private Partnership on
Co-Processing: Case ............................................... 58
3.5.3 Climate Change Adaptation: Concept ................... 60
3.5.4 Climate Change Vulnerability Assessment: Case .... 62
4. EID APPROACH: AT INDUSTRY LEVEL
4.1 Eco-performance: Concept .................................... 65
4.2 Resource Efficiency in the Steel Sector: Case ........ 66
4.3 EcoProfit for Resource Efficiency
in a Rubber Company: Case .................................. 68
4.4 Energy Savings through Co-Generation of
Electricity and Steam: Case.................................... 70
5. CONCLUSIONS / ANNEX
Conclusions and Outlook ...............................................73
About GIZ ......................................................................76
120914_Pathway_EID_ISOX3uncoated.indd 7 04.10.12 15:08
8
120914_Pathway_EID_ISOX3uncoated.indd 8 04.10.12 15:08
9
1.1. Overview
Over the last few decades, industrialisation is increasing sub-
stantively, especially in emerging economies like India. Indus-
trialisation, if not properly planned, is associated with envi-
ronmental risks caused by unrestrained consumption of
natural resources, pollution, and disasters. The impacts of
industrialisation get exacerbated with those of climate change.
This situation calls for development of approaches that
satisfy the growing needs of the Indian population without
either damaging the natural environment irreversibly or con-
tri buting to climate change.
Internationally, there have been several concepts such as
Industrial Ecology, Eco Industrial Parks, Resource Efficiency,
and Industrial Symbiosis, which have been developed to
combat the risks of industrialisation and support sustainable
development. In India too, as in most other parts of the
world, several of these concepts have been applied in
recent years. Successes from these concepts vary from one
industrial sector or geographic region to another. These
concepts, in one way or the other, support balancing envi-
ronmental, social and economic interests. Eco Industrial
Development is an overreaching framework and a subset of
sustainable development, while Industrial Ecology, Industrial
Symbiosis etc. are specific strategies.
Industrialisation is an important driver for development.
Focusing on proper planning and development of industrial
areas, such as industrial estates, industrial parks, special eco-
nomic zones, or investment zones could contribute signifi-
cantly towards the goal of sustainable development.
Concepts and Approaches for Sustainable Industrial Development Industrial Ecology is the study of the flows of materials and energy in industrial and consumer activities, of the effects of these flows on the environment, and of the influences of economic, political, regulatory, and social factors on the flow, use, and transformation of resources.
Industrial Symbiosis is a cooperation between different industries by which the presence of each increases the viability/ profitability of the other(s), and by which the demands of society for resource savings and environmental protection are considered.
Environmental Management Systems are environmental management approaches that identify the environmental aspects of a company’s operations and legal requirements, establish environmental objec-tives and targets, create a set of management programmes to meet these objectives and targets, establish internal and external report-ing systems including regular audits, reports to management, and provide follow-up on the audit findings and reviews to ensure continual improvement.
Design for the Environment evolved out of product life-cycle analysis and concurrent engineering. This work considers all potential envi-ronmental implications of a product: energy and materials used in the product, its manufacture and packaging, transportation, consumer use, reuse or recycling, and disposal.
Not only the industrial areas, but also the individual com-
panies within these areas need to strive for achieving greater
competitiveness by resource-efficient modes of production.
Efficiency strategies play an increasingly important role for
emerging economies such as India for becoming competitive
locally as well as globally, especially in compliance of the
recent conventions and treaties.
1. INTRODUCTION ECO INDUSTRIAL DEVELOPMENT
1.1. Overview
1.2. Learning from International Experience
120914_Pathway_EID_ISOX3uncoated.indd 9 04.10.12 15:08
10 Eco Industrial Development
1.2 Learning from International Experience
Initial ConceptsAt the United Nations Conference on Environment and Develop-
ment (UNCED) in Rio de Janeiro in 1992, nearly 180 nations
resolved that in order to achieve sustainable development,
environmental protection shall constitute an integral part of
the development process and cannot be considered in isolation
from it (Rio Declaration on Environment and Development).
Nations have agreed that sustainable development should be
the goal and operating principle for governments, businesses
and individuals around the world. The Agenda 21 calls for the
development of national strategies for sustainable development.
The Eco Industrial Development (EID) concept was first descri-
bed during a presentation at this very conference.
Since 1993, the EID concept became well-known in the USA
through its introduction by Indigo Development to the US-
Environment Protection Agency (Lowe et al.1998). In the United
States, in 1993, a President's Council on Sustainable Develop-
ment with representatives from business, labour, government,
environmental organizations and civil rights organizations was
constituted. The Council recommended assistance to create
Eco-Industrial Parks (EIP) as models of industrial efficiency.
As defined in the Eco Industrial Park Handbook1 (Lowe 2001)
for Asian Developing Countries, An Eco Industrial Park or
Estate is a community of manufacturing and service businesses
located together on a common property. Member businesses seek
enhanced environmental, economic, and social performance
through collaboration in managing environmental and resource
issues. By working together, the community of businesses seeks
a collective benefit that is greater than the sum of individual
benefits each company would realize by only optimizing its
1) Ref: http://indigodev.com/Ecoparks.html
individual performance. The goal of an EIP is to improve the
economic performance of the participating companies while
minimizing their environmental impacts. Components of this
approach include green design of park infrastructure and plants
(new or retrofitted); cleaner production, pollution prevention;
energy efficiency, and inter-company partnering. An EIP also
seeks benefits for neighbouring communities to assure that the
net impact of its development is positive.
Cooperation can have different forms and intensity. Figure 1.2
(Cohen-Rosenthal 1999) gives more detailed examples of
cooperation option for companies oriented towards EID.
The anticipation of these benefits can serve as an incentive
for companies to improve their environmental and economic
performance through more efficient management of raw
materials, energy and waste. However, this requires a lot of
foregoing activities such as consciousness building, facilita-
tion of stakeholder dialogues, management support, and
others – all of which are important elements of a strategy
to foster resource efficiency.
The benefits to communities and businesses for adopting
EID strategies are numerous, depending on the local con-
ditions. Table 1.2 lists some of the potential benefits to
communities, the environment, and businesses.
120914_Pathway_EID_ISOX3uncoated.indd 10 04.10.12 15:08
11
Quality of Life/Community Connections »�Integrating Work and Recreation »�Cooperative Education Opportunities »�Volunteer and Community Programs »�Involvement in Regional Planning
Human Resources »�Human Resources Recruiting »�Joint Benefits Packages »�Wellness Programs »��Common Needs (payroll, maintenance, security)
»�Training »�Flexible Employee Assignments
Figure 1.2 Cooperation Options for Companies towards EID
Materials »�Common Buying »�Customer/Supplier Relations »�By-product Connections »�Creating New Material Markets
Transportation »�Shared Commuting »�Shared Shipping »�Common Vehicle Maintenance »�Alternative Packaging »�Intra-park Transportation »�Integrated Logistics Environment, Health & Safety
»�Accident Prevention »�Emergency Response »�Waste Minimization »�Multi-media Planning »�Design for Environment »�Shared Environmental Information Systems »�Joint Regulatory Permitting
Information/Communication Systems »�Internal Communications »�External Information Exchange »�Monitoring Systems »�Computer Compatibility »��Joint Management Information System for Park Management
Marketing »�Green Labeling »�Accessing Green Markets »��Joint Promotions (e.g. advertising, trade shows)
»�Joint Ventures »�Recruiting New Value-Added Companies Production Processes
»�Pollution Prevention »�Scrap Reduction and Reuse »�Production Design »�Common Subcontractors »�Common Equipment »�Technology Sharing and Integration
Energy »�Green Buildings »�Energy Auditing »�Co-generation »�Spin-off Energy Firms »�Alternative Fuels
Sou
rce:
Coh
en-R
osen
thal
, E. (
199
9): H
and
boo
k on
Cod
es, C
oven
ants
, Con
dit
ion
s, a
nd
Res
tric
tion
s fo
r E
co-I
ndu
stri
al P
ark
s.
120914_Pathway_EID_ISOX3uncoated.indd 11 04.10.12 15:08
12 Eco Industrial Development
Communities Environment Business
Expanded local business opportunities Continuous environmental improvement Higher profitability
Improved tax base Reduced pollution Enhanced market image
Community pride Innovative environmental solutions High performance workplaces
Reduced waste disposal costs Increased protection of natural ecosystems Improved efficiency
Improved environment and habitat More efficient use of natural resources Access to financing
Recruitment of higher quality companies Protection and preservation of natural habitat
Regulatory flexibility
Improved health for employees and community
Higher value for developers
Partnership with business Reduction of operating costs (i.e. energy, materials)
Minimized impact on infrastructure Reduction in disposal costs
Enhanced quality of life near eco-industrial development
Income from sale of by-products
Improved aesthetics Reduction of environmental liability
Good jobs Improved public image
Increased employee productivity
Table 1.2 Potential Benefits of Eco Industrial Development
Source: Cohen-Rosenthal, E. (1999): Handbook on Codes, Covenants, Conditions, and Restrictions for Eco-Industrial Parks.
Over the years, the EID concept has evolved with expanded
scope due to added concerns such as climate change. EID
concepts have been applied in one form or the other in several
countries in America, Europe, Asia, and Africa.
A Few ExamplesAll over the world, different aspects of EID have been imple-
mented. One of the earliest examples of the form of Industrial
Symbiosis can be found in Kalundborg, Denmark. The Kalund-
borg case started with a project in 1961 to use surface water
from Lake Tisso for a new oil refinery in order to preserve
the limited supplies of ground water. During subsequent years,
cooperation between companies emerged and Kalundborg
became the best known example of an industrial ecosystem
where one company's by-product became an important
resource to one or several of the other companies. The out-
come was reduction in resources consumption as well as
in negative impacts on the environment. The collaborating
partners also benefitted financially from the co-operation
because the individual agreements were based on commercial
principles. For example, the waste heat from a power plant
is used by the municipality and a fish farm, fly ash from the
power plant is used by a cement plant, yeast slurry from a com-
pany is used in a pig farm. Other examples include waste
water, steam, cooling water, etc. exchanged between industries.
The Bayer Chemical Park at Leverkusen in Germany was
established way back in the year 1891. The industrial plants
changed over time but the industrial park exists successfully
even today because it was well planned with appropriate
block/plot sizes, infrastructure and management structures.
Similar chemical parks are located at Dormagen and Krefeld-
Uerdingen that came up later. As a private park operator,
CURRENTA takes care of these three industrial parks located
at Leverkusen, Dormagen and Krefeld-Uerdingen with a
total area of approximately 11 km². It facilitates material
exchanges, sets up adequate environmental infrastructure,
offers services, and supports the companies in their commu-
nication with the municipality.
120914_Pathway_EID_ISOX3uncoated.indd 12 04.10.12 15:08
13
The Shanghai Chemical Industrial Park (SCIP) in Shanghai,
China with its 5,560 acres is based on Eco Industrial Park
concepts. SCIP claims to have adequate environmental infra-
structure and services as well as disaster management facilities,
and has whopping investment targets of US$ 35-50 billion
at the site.
EID in the Philippines focused on developing EID concepts,
manuals and guidelines, setting up an EID Information
Management System, undertaking pilot projects on cleaner
production in industries, planning disaster management,
setting up vermi-compost plants, and undertaking CSR acti-
vities related to health and sanitation.
EID in Indonesia includes setting up of Community Dialogue
Forums (CDP) to create understanding and to ease potential
conflicts among stakeholders; setting up of Cleaner Production
Clubs (CPC) among companies to work together to save money
and reduce waste through networking, strengthening infra-
structure, and preparing EcoMaps for industrial parks from
GIS-based information (Geographic Information System).
EID in Tunisia includes establishing management associations
(groupements de maintenance et gestion – GMG), surveying and
assessing industrial areas, developing action plans, creating
attractive green and public areas, preventing floods, impro-
ving management of water and waste water, managing risks
in a better way and improving safety and security.
EID in Thailand focuses on risk assessment and risk profiling
of selected industrial areas. It encompasses developing chemi-
cal safety management guidelines and a tool kit, promoting
safe transport and storage of dangerous goods, and creating
effective emergency management plans.
The EID approach employs a wide variety of measures and
tools. Whether working on the policy level, the industrial park
level or the single company level, a customised mix of measures
and tools is required. Working on Eco Industrial Development
in several countries across the globe, GIZ, together with its
international partners, has developed a variety of such tools
that have been compiled into the EID Toolbox.2
2) Ref: http://www2.gtz.de/network/eid-toolbox/index-asp or contact eid@giz.de.
120914_Pathway_EID_ISOX3uncoated.indd 13 04.10.12 15:08
1414 The Indian Context
120914_Pathway_EID_ISOX3uncoated.indd 14 04.10.12 15:08
15
2.1 Industrial Development in India
India’s economy is booming. The Gross Domestic Product
(GDP) arising from the industrial sector (mining and quarry-
ing, manufacturing, electricity, gas and water supply, and
construction) showed an annual average growth of 8.1 % in
2010/2011.3 Besides textiles, traditionally a very important
industry in India, heavy industry, mechanical engineering
and chemicals predominate. The space, electronics and nuclear
industries are also relatively highly developed.
India has over three million Small and Medium Enterprises
(SMEs). Since the beginning of planned economic develop-
ment, India has followed a policy for the development of
industrial estates and industrial parks to facilitate the estab-
lishment of small and medium industrial units. Special Eco-
nomic Zones (SEZ) have been developed to host bigger com-
panies. Recent trends show setting up of Special Investment
Zones/ Regions, National Manufacturing and Investment Zones
(NMIZ), and Petroleum Chemicals and Petrochemical Invest-
ment Zones (PCPIR), in addition to the SEZs and the more
traditional industrial estates and industrial parks.
Many existing industrial estates face severe environmental
problems due to the lack of environmental infrastructure.
With regard to Common Effluent Treatment Plants (CETP),
as per a study of the Central Pollution Control Board (CPCB)
in 2005, only 6.4 % of about 78 CETPs studied comply
with the standards. With regard to wastes, there still are
problems associated with Hazardous Wastes, e-wastes, and
non-hazardous industrial wastes. Towards the end of the
Tenth Five Year Plan (2002-03 to 2006-07), there were many
2. THE INDIAN CONTEXT2.1 Industrial Development in India
2.2 Cooperation towards EID
2.3 Relevance of EID Concepts for India
schemes for the improvement of these estates as well of as
industrial clusters outside the estates. However, a Comprehen-
sive Environmental Pollution Index (CEPI) which was devel-
oped by CPCB for industrial estates showed that as per the
initial study taken up for 88 industrial areas in 2009 – 10, 43
of these areas were critically polluted with respect to one or
more environmental components.
Industrial effluents comprise organic pollutants, chemicals,
heavy metals, and run-offs from land-based activities such as
mining. These are major sources of water pollution. Major
water polluting industries include fertilizers, refineries, pulp
and paper, leather, metal plating, and other chemical indus-
tries. The existing pollution abatement infrastructure includes
installations by individual industries as well as common infra-
structure in the form of CETP. Fly-ash, phospho-gypsum,
and iron and steel slags are main forms of industrial solid
wastes generated in India. It is estimated that around 112.29
million tonnes of fly-ash is generated annually by thermal
power plants, of which only 53.92 million tonnes are utilized
by different sectors like cement, road embankments, fly ash
bricks and products, and back filling of mines. Besides, there
are 36,145 Hazardous Waste generating industries in the
country producing 6.2 million tonnes of Hazardous Waste
every year, brought about by expansion of chemical-based
industries. It is further estimated that about 147,000 million
tonnes of e-waste was generated in the country in 2005,
which is expected to increase to about 800,000 million tonnes
by 2012.
3) Review of the Economy 2010/11, Economic Advisory Council to the Prime Minister, February 2011, New Delhi
120914_Pathway_EID_ISOX3uncoated.indd 15 04.10.12 15:08
16
High growth rates of industry and pollution problems poten-
tially increase pressure on climate and the environment.
Fortunately, environmental and climate change issues are
high on India’s political agenda and initiatives have been
taken by the towards climate friendly and sustainable devel-
opment. The National Environmental Policy (2006), the
National Action Plan on Climate Change (2007), the Low
Carbon Inclusive Growth Strategy (2011), and the National
Manufacturing and Investment Zone Policy (2011) are a few to
name.
The Government has notified emission and effluent stand-
ards under the Environment (Protection) Act 1986. The
concerned State Pollution Control Boards/ Pollution Control
Committees along with the Central Pollution Control Board
(CPCB) monitor the effluent discharges, emissions and
wastes. As in the year 2009, a total number of 2,504 indus-
trial units have been identified as polluting, out of which
1,810 have set up pollution control facilities to comply with
standards, 265 are defaulting, and 429 have been closed.
The Charter on Corporate Responsibility for Environmental
Protection (CREP) covers 17 categories of highly polluting
industries that provide for voluntary pollution control
commitments by various industry sectors.
Other measures taken by the Government towards effective
control of industrial pollution include inspection and
enforcement of emission and effluent standards through
issue of directions and consent mechanisms, mandatory
prior environmental clearance for designated development
projects, financial assistance for the establishment of CETPs
for small-scale industrial units located in industrial clusters,
identification of critically polluted areas, and preparation of
action plans for the abatement of pollution.
2.2 Cooperation towards EID
A comprehensive, yet customised EID approach has substan-
tial benefits for the industry, environment and communities.
Under the Advisory Services in Environmental Management
(ASEM) Programme of the Indo German Development Cooper-
ation, a number of initiatives were taken since 2002 to assist
the Indian Government on its pathway to Eco Industrial
Development.
2.3 Relevance of EID Concepts for India
While there are different EID concepts and approaches, it
is important to understand what it actually means to foster
EID, particularly for emerging economies such as India. An
EID strategy, appropriate for India, deals with the individual
industry level, the industrial park level, as well as regional,
national and global levels. All three levels are relevant: micro,
meso and macro. While single companies need to take action,
the industrial park level is an ideal structure to initiate and
implement savings through resource exchanges and shared
facilities. The regional level helps strike a balance between
socio, economic and environmental aspects. On the national
level, enabling framework conditions have to be worked out.
Furthermore, in the context of the two UN conferences on
Climate Change in Durban, South Africa, in 2011 and on
Sustainable Development in Rio, Brazil, in 2012, a global
perspective is relevant to the topic.
The Indian Context
(Source: http://indiabudget.nic.in/ Economic Survey 2010-11, Ministry of Finance).
120914_Pathway_EID_ISOX3uncoated.indd 16 04.10.12 15:08
17
Figure 2.3 Eco Industrial Development Approach
State/National Level
Investment Zone Level
Industrial Estate Level
Group of Companies
Industry Level
Policy framework, development strategy, laws, standards
Integration of environmental/ climate aspects into Regional Development Plans
New parks: Site suitability assessments, Site Master Planning, planning of infra-structure & services, integration of envi-ronment/ climate relevant measures
Existing parks: Transformation process with environment, climate and infra-structural measures
Industrial Symbiosis
Cleaner production, environment friendly technologies, resource efficiency, climate change adaptation/ mitigation
120914_Pathway_EID_ISOX3uncoated.indd 17 04.10.12 15:08
18 EID Approach – Industrial Park Level
120914_Pathway_EID_ISOX3uncoated.indd 18 04.10.12 15:08
19
Concept
3.1 New Industrial Parks
3.1.1 New Industrial ParksAn industrial park is a site accommodating several industrial
companies. In the past, industrial parks in India have often
been developed as agglomerations of companies housed on
smaller plots of land with low investments and limited serv-
ices and synergies. Looking at the recent trends across the
globe, as in the case of Special Economic Zones (SEZ), several
governments have decided to set them up with an effective
planning process beforehand including incentives for a more
environmental and climate friendly production. South Korea,
China and the United Arab Emirates have, for example,
taken great strides in implementing low-carbon green SEZs.
In the United Arab Emirates, Jebel Ali Free Economic Zone
(Jafza) has managed to save $1.03 million through sustaina-
ble measures such as proper planning, energy efficiency,
renewable energy supply, water savings, waste recycling and
green building codes. In addition, SEZs, by becoming local
centres for development and deployment of green technolo-
gies, have proved effective in facilitating knowledge transfer
and sharing innovations.
In India as well, the advantages of a proper planning pro-
cesses for the development of new industrial parks have
become obvious. India’s Special Economic Zones (SEZs) Policy
announced in the year 2000 intends to establish SEZs, backed
by quality infrastructure and attractive fiscal package, as an
engine for economic growth, both at National and State
level. Also, the recently announced National Manufacturing
Investment Zones (NMIZ) (2012) are proposed to have good
physical infrastructure and structures to support resource
efficient technologies.
3. EID APPROACH: AT INDUSTRIAL PARK LEVEL
3.1 New Industrial Parks
3.2 Existing Industrial Parks
3.3 Infrastructure Development
3.4. Management Improvements
3.5. Climate Change Considerations
Important elements of planning a new industrial park
include:
» vision for site development with environment
and climate orientation
» siting/ site selection
» defining investment and employment targets
» market analysis on potential investments
» identification of investors
» Environmental Impact Assessment (EIA)
» Site Master Planning.
At all the stages of planning, reliable data is crucial. However,
the availability of reliable data is often challenging when
planning is introduced for the first time and only becomes
less difficult with the passage of time and adequate processes
of data collection in place.
Planning an industrial park is more than just a technical
exercise. It encompasses stakeholder participation and con-
sultations at various stages. Stakeholders refers to neighbouring
communities, companies, local authorities, and political deci-
sion-makers.
120914_Pathway_EID_ISOX3uncoated.indd 19 04.10.12 15:08
20
Case
EID Approach – Industrial Park Level
3.1.2 Site Suitability AssessmentSuitability assessments within the park identify areas with constraints such as those prone to erosion or floods,
and areas with environmental functions such as ground water recharge zones. Planners determine block sizes
for industries, considering the type of industries likely to be established at the site. Decisions are based on
market surveys combined with site suitability assessments.
The Krishnapatnam International Leather Complex Private Limited (KPILC) is a Special Purpose Vehicle (SPV)
company initiated by the Government of Andhra Pradesh for the development of an integrated Leather Park on
the east coast of India. The state government conceptualised this project along with the technical co-operation of
the Central Leather Research Institute (CLRI) of India.
KPILC envisages to develop an environmental-friendly complex for the leather sector (especially tanning
units), which is traditionally regarded as a highly polluting industry. The planned integrated environmental
management systems for the complex would make it a benchmark for other proposed leather parks in the
country and also be at par with other international leather parks globally. For setting up the project, KPILC
initially identified two alternate sites in Nellore District, Andhra Pradesh. L&T-RAMBØLL Consulting
Engineers Limited was appointed as the consultant for assessing the site suitability for the project and also for
preparing the Conceptual Site Master Plan. Various parameters were studied for assessing the site suitability
including location, extent of land and its availability, connectivity, physical features (terrain, land use, and
developable area), infrastructure availability, present level of pollution, social aspects, natural hazards, existing/
proposed developments in the region, environmental aspects including presence of environmental sensitive
zones and resource areas in the proximity, e.g. coastal regulatory zones, reserved forests, wild life sanctuaries,
endangered species, ground water recharge zones, etc.
Based on such an analysis, the first site located to the north of Krishnapatnam Port was found to be unsuita-
ble for development of the Leather Park due to - (i) insufficient land availability, (ii) environmental impacts
(owing to the passage of coal conveyors from the port to the nearby power plants and siting of the ash pond
of a power plant adjacent to the site, and pollution caused by coal dust or dust from the ash pond that would
have a negative impact on the leather industry processes,) and (iii) being partially located within the area of
the coastal regulation zone. This site was then proposed to be developed for logistical activities only. It is rea-
sonable due to its proximity to the port.
The second site located to the south of Krishnapatnam Port was recommended for the development of the
Leather Park considering its relative advantages of land availability, amenable terrain for industrial develop-
ment and minimal environmental impacts.
EID Approach – Industrial Park Level
120914_Pathway_EID_ISOX3uncoated.indd 20 04.10.12 15:08
21
“In India, the availability of land for indus-trial use is decreasing by the day with increased public awareness on both envi-ronmental and social aspects associated with industrial projects. The past few years have seen a trend in developers seeking only suitable sites for project planning. This due diligence is helpful in providing caution on any issues relevant to the site prior to land acquisition.”
J.K. Smitha L&T – RAMBØLL Ltd., Senior Planner, Hyderabad, Andhra Pradesh
120914_Pathway_EID_ISOX3uncoated.indd 21 04.10.12 15:09
22
Case
EID Approach – Industrial Park Level
3.1.3 Environmental Impact AssessmentThe Environmental Impact Assessment analyses the expected ecological threats, and in some cases, even disallows
activities with adverse impacts on the environment. As per the Environmental Impact Assessment Notification
of September 14, 2006 (as amended) of the Environment (Protection) Act, 1986, certain scheduled industries
and industrial estates require prior Environmental Clearance for which an elaborate environmental impact
assessment has to be undertaken by the proponents.
The SEZ Act 2005 envisages a key role for the State Governments in export promotion and creation of related
infrastructure. Within this framework, the Government of Andhra Pradesh has initiated the development of several
SEZs in the state. The Andhra Pradesh Special Economic Zone (APSEZ) is one of such SEZs which are strategically
located in an industrial belt. It is close to Visakhapatnam, a port city. As per the EIA Notification, 2006, (as
amended) issued under the Environment (Protection) Act, 1986, APSEZ having an area more than 500 ha and
planning to house multi-product industries including chemical industries, requires to undertake Environmental
Impact Assessments and obtain Environmental Clearance from the Indian Ministry of Environment & Forests.
The EIA process undertaken for APSEZ comprised four stages, viz. screening, scoping, public consultations
and appraisal. Studies undertaken include:
» identification of ecologically/ environmentally sensitive zones within 10 km of the project radius and
assessment of baseline environmental conditions
» identification and prediction of significant environmental impacts due to proposed APSEZ on various
terrestrial and marine environmental components, including social impact assessment
» evaluation of significant impacts and delineation of impact mitigation measures
» preliminary risk analysis and disaster management planning
» analysis of alternate sites and identification of best suitable site
» preparation of environmental management plan and environmental monitoring plan for the construction
and operation phases of the project for the best suitable site.
For APSEZ, the study phase was followed by a public consultation process where the project was presented
to the local community in local language in the presence of the State Pollution Control Board and district
authorities. The study then underwent appraisal process at the Indian Ministry of Environment & Forests.
Based on the EIA study, certain categories of industries not suitable to the site were restricted from setting up.
Also, infrastructure such as separate pipelines for high TDS (Total Dissolved Solids) and low TDS effluents, an
adequate area for reuse of treated waste water for irrigation purposes, guard ponds for storing treated waste
water before disposal, online monitoring systems to check the quality of treated waste water, a desalination
plant for meeting additional water requirements, a captive power plant for power generation and supply, etc.
were provided for in the site master plan of APSEZ.
120914_Pathway_EID_ISOX3uncoated.indd 22 04.10.12 15:09
23
Key Features of APSEZ
» Environment, climate and energy related issues at planning stage were adequately considered and required land was allocated in the Site Master Plan.
» Very high emission industries that are not compatible to the site were restricted from the industrial park.
» For climate change adaptation, the aspects of stormwater drainage to cope with excess rain, recycling/ reuse of treated water for meeting with water shortages, adequate plantation to deal with micro climate control and temperature regulation were integrated.
» For effective waste water management, separate piping was provided for high and low total dissolved solid effluents. Common effluent treatment plants and sewage treatment plants were kept separate. Online monitoring systems were provided for key pollutant parameters at industry outlets as well as at the treatment plants. Furthermore, a facility to recycle treated waste water was provided.
» For reduced environmental impact, a systematic Environmental Impact Assessment (EIA) was under-taken, proper zoning of the site was done for different types of polluting industries, and adequate envi-ronmental infrastructure was planned.
» Solar street lamps were proposed in the park. A common co-generation plant is in the planning stage. Disaster risks were taken into consideration. A traffic and transportation plan was integrated into the Site Master Plan.
» The Site Master Plan included adequate parking areas, canteens, a business centre, and other services and logistics areas. Also, provisions were made for emergency exits in case of disasters.
120914_Pathway_EID_ISOX3uncoated.indd 23 04.10.12 15:09
24
Case
EID Approach – Industrial Park Level
3.1.4 Site Master PlanningSite Master Planning is an important step for the development of any new industrial area. It helps to make
industrial parks attractive and competitive. One of the first steps for undertaking Site Master Planning is to assess
demands and the type of industries/ investments/ employment likely to come up at the site, an assessment of
potentials/ resources/ sensitivities and the formulation of a vision and strategy for the industrial park. Secondly,
environmental infrastructure requirements and environmental services needed at the site are also assessed.
Without proper planning, no common infrastructure and services are likely to be designed. Doing so at later
stages could become costlier or even unviable. If industries are not grouped well, it becomes difficult, for
example, to establish an effective sewerage system, waste management, effluent treatment, and other common
infrastructure. Also, unstructured set-up of companies reduces options for resource exchanges and industrial
symbiosis. Lack of buffer zones could pose challenges for compatibility with the neighbouring community.
The Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) decided to set up the Andhra Pradesh
Special Economic Zone (APSEZ) at Visakhapatnam with the underlying principles of Eco Industrial Develop-
ment. The work on the Site Master Planning was undertaken by the national consultants L&T – RAMBØLL
Consulting Engineers Ltd. under the technical guidance of Bayer Technology Services (BTS) from Germany.
APIIC’s objective was to establish an integrated well-planned infrastructure and an efficient management
structure to ensure continual global competitiveness and to be seen as a benchmark in Andhra Pradesh and in
the country – both in terms of market relevance and environmental sustainability.
Aspects included were assessment of energy and water demand, generation of solid waste and waste water, land
use and land cover, traffic situation and the need for environmental infrastructure like a Common Effluent
Treatment Plant and common services like a hospital, a community hall, postal services, banks, canteens, etc.
As a result of the Site Master Planning, the site was divided into five industrial zones to house different industry
sectors, viz. engineering, fine and specialty chemicals, as well as ancillary petrochemicals. Effective zoning
showed possibilities for co-operation between companies while also optimising infrastructure and services.
An area of 62 % was earmarked for the development of industrial units and 38 % of remaining space pro-
vided for the development of infrastructure services, common utilities, housing, and allied social infra-
structure services.
120914_Pathway_EID_ISOX3uncoated.indd 24 04.10.12 15:09
25
“India has an elaborate environmental legis-lation, however translating this into plan-ning and implementation is often a chal-lenge. For my team to perform the Site Master Planning tasks was not always easy due to data constraints. However, owning to customized technical approaches adopted, I can say that the results are convincing. We are following up for proper implementation of the plan and ensuring a successful ope-rational phase so as to form a model for all new industrial areas planned.”
C.V. Sundara Rajan L&T – RAMBØLL Ltd., Hyderabad City Office Manager
Figure 3.1.4 Map of Andhra Pradesh Special Economic Zone
120914_Pathway_EID_ISOX3uncoated.indd 25 04.10.12 15:09
26
Concept
EID Approach – Industrial Park Level
3.2 Existing Industrial Parks
3.2.1 Transformation of Existing Industrial ParksTo achieve the transformation of existing industrial parks, it is
important to identify viable and environment-friendly solu-
tions, and strengthen organisations as well as human resources
for effective implementation. The scope of transformation of
existing industrial parks includes the following key elements:
» improvement in infrastructure and services
» improvement in eco-performance of individual
industries
» improvement of industrial park management.
Improvement in infrastructure and services: One important
element of improving existing industrial parks is to introduce
common services so that companies can better concentrate
on their core businesses. Common services capitalise on the
fact that companies are located in vicinity of other companies
with similar needs. The following common services are rele-
vant in an industrial park:
» environmental services – waste water collection, treat-
ment and disposal systems (including sewers and Com-
mon Effluent Treatment Plants); drainage systems and
rain water harvesting facilities; green belts and landscap-
ing; waste (Hazardous Waste, non-hazardous industrial
waste, municipal solid waste) management facilities
» energy services – electricity, steam, water, refrigeration,
compressed air, natural gas
» monitoring services – air quality, water quality, product
certification, environmental monitoring, green house gas
accounting, permits
» site safety and security – site protection, fire prevention,
disaster risk management
» infrastructure and real estate – facility management
» technical services – workshops, trainings, advisory
services
» social services – hospital, canteen, childcare.
Improvement in eco-performance of individual industries:
Eco-performance is an approach that targets improved
efficiencies, cleaner production, reduced consumption of
resources and reduced environmental impacts, thereby making
it profitable for enterprises to adopt. There are several tools
available based on this approach.
For example, the EcoProfit training tool aims to reduce the
cost of operations in the companies by optimising process
operations and minimising raw materials, water, waste and
energy. EcoProfit follows an approach with paradigm shift
from end-of-pipe solutions such as treating waste and emis-
sions to a preventive approach such as minimising waste and
emissions in the process itself with no or low costs. This and
similar training tools not only help individual companies,
but also support the overall sustainable development targets
communatively. The approaches include application of cleaner
production tools, energy and environmental audits, and
by-product exchanges or industrial symbiosis – which means
that a set of companies seek to utilise each other's by-prod-
ucts (energy, water, and materials) rather than these by-prod-
ucts disposed off as waste.
Improvement of industrial park management: Environmental
Management Cells and Geographic Information Systems (GIS)
are set-up for providing industry-wise details as well as status
of infrastructure in the industrial park, awareness programmes,
mock drills for disaster risk management, public relations / cor-
porate social responsibility activities, facility management, etc.
120914_Pathway_EID_ISOX3uncoated.indd 26 04.10.12 15:09
27
120914_Pathway_EID_ISOX3uncoated.indd 27 04.10.12 15:09
28
Case
EID Approach – Industrial Park Level
3.2.2 Transformation ExamplesIn Andhra Pradesh, an initial set of actions on state level took place between 2004 and 2007. Stakeholders
prepared strategy papers and gained consensus on the measures to be taken. They undertook a number of
awareness and training programmes along with measures towards plantation, which they considered easy to
begin with. Subsequently, they also initiated measures towards strengthening the basic infrastructure, viz.
storm water drainage, sewerage systems, plantation and waste water treatment through a Common Effluent
Treatment Plant, etc.
As early as in the year 2007 the Andhra Pradesh Industrial Infrastructure Cooperation Ltd. (APIIC) decided to
transform all its existing industrial parks into Eco Industrial Parks (EIP) in a phased manner. It implemented
the first set of measures in industrial parks at Nacharam and Mallapur in the Moula Ali Zone near Hyderabad.
From the year 2008, APIIC itself increased its environmental staff and expanded efforts to several other indus-
trial parks in Andhra Pradesh. From two pilot industrial parks, the efforts spread across to over 30 industrial
parks in Andhra Pradesh.
Highlights from the pilot measures taken up in the existing industrial parks are given below:
» Environmental information reports were developed for six industrial parks to bring to the knowledge of
the authorities the key environmental and infrastructure issues in the industrial parks and the need for
improvement.
» Solar street lamps were installed in three industrial parks by replacing the conventional electric lights.
» Storm water drains were constructed initially in two industrial parks. Some of the low lying areas in
these industrial parks were previously getting flooded forcing the industries to close their production.
These industries are now free from such hazards.
» Sewerage systems were constructed in two industrial parks for carrying industrial effluents. A Common
Effluent Treatment Plant (CETP) is in an advanced stage of completion. The industries, especially the
chemical industries in these parks, were under tremendous environmental regulatory risks. Once the
CETP is completed, the industries will benefit considerably, their regulatory risk will reduce substantially.
» Several companies such as M/s Salicylates, Chemicals Pvt. Ltd. and M/s The Times of India benefited from
the application of the EcoProfit tool. The savings achieved from implementing environmental measures
were to tune of Rs 25 million in the first year itself.
» Due to plantation measures taken up across several industrial parks, the parks have become greener.
Besides improving aesthetics, it also improves the micro-climate to an extent.
» Improved environmental management in the industrial parks implies reduced illegal discharges of
effluents and wastes besides overall improvement of the parks.
120914_Pathway_EID_ISOX3uncoated.indd 28 04.10.12 15:09
29
“The introduction of the Eco Industrial Park concept and the employment of Environ-mental Cells has been God’s gift to us. Roads are cleaner now, the estate is gre-ener, air quality improved considerably, we know how to save energy within our pro-duction processes, we advanced in man power management. All of these changes have taken place without much money being involved.”
P.S.S. Naidu, President Mallapur Industrial Units Welfare AssociationHyderabad, Andhra Pradesh
120914_Pathway_EID_ISOX3uncoated.indd 29 04.10.12 15:09
30
Case
EID Approach – Industrial Park Level
3.2.3 Environmental Management CellsOne element to improve an existing industrial park is to have a sound environmental management structure
within the industrial park. In Andhra Pradesh, the industrial park authorities (known as Industrial Area Local
Authority (IALA)) were involved in functions such as maintaining roads, street lights and waste management.
However, they lacked environmental expertise. To fill this gap, Environmental Management Cells (EMC) were set
up, initially for industrial parks at Nacharam and Mallapur, to support IALAs with environmental management
functions and support the improvement of environmental management in the industrial parks. Subsequently,
the EMCs were expanded to over 30 industrial parks.
The following tasks are taken up by EMCs:
» provide technical, advisory, and planning support to IALA in all matters relating to environmental
management
» provide or organise support services to individual industries in industrial parks on environmental
related matters
» create environmental data banks
» ensure that the needed environmental infrastructure is identified in the industrial parks and give
advice for implementation, operation and maintenance
» conduct and assist in pollution control monitoring
» take necessary actions for setting up emergency/ disaster plans and preparedness guides
» coordinate implementation of training programmes for IALAs and industries
» improve communication about environmental management between IALAs and further stakeholders.
After gaining good experiences from EMCs in Nacharam and Mallapur Industrial Parks, APIIC expanded the
establishment of EMCs to six more zones (Shamshabad, Patancheru, Visakhapatnam, Kakinada, Nellore and
Tirupati) catering to over 30 industrial parks. It outsourced the task of setting up these EMCs to professional
agencies. However, in due course, APIIC considered it useful to strengthen its own staff instead of outsourcing.
Now, it has environmental staff at its Zonal Offices to look into the environmental management functions.
120914_Pathway_EID_ISOX3uncoated.indd 30 04.10.12 15:09
31
120914_Pathway_EID_ISOX3uncoated.indd 31 04.10.12 15:09
32
Concept
EID Approach – Industrial Park Level
3.3 Infrastructure Development
3.3.1 Waste ManagementIndustrial waste is any type of solid waste that any industry
generates/ produces through industrial/ commercial activity.
This waste may be hazardous and/ or non-hazardous. Never-
theless, it requires to be managed properly. The Indian legal
system has a separate focus on each type of industrial waste.
However, in general, the industrial waste is dealt with in
three major environment laws of the country – Water (Pre-
vention and Control of Pollution) Act, 1974; Air (Prevention
and Control of Pollution) Act, 1981; and Environment (Pro-
tection) Act, 1986.
A guiding concept for waste management is named 3R which
refers to reduce, reuse and recycle. It calls for an increase in
the ratio of recyclable materials, reuse of raw materials and
manufacturing wastes, and overall reduction in resources and
energy used. Objectives should be applied to the entire life-
cycles of products and services – from design and extraction
of raw materials to transport, manufacture, use, dismantling/
reuse and disposal.
In order to manage Hazardous Waste in an environmentally
sound manner, the Ministry of Environment & Forests (MoEF)
of the Government of India notified the Hazardous Waste
(Management & Handling) Rules, 1989, under the provisions
of the Environment (Protection) Act, 1986.
Waste management includes collection, segregation, storage,
transportation, treatment and disposal. For cost effective waste
management, it is necessary to explore the possibilities of
waste minimisation through process improvements and to
recycle and reuse to the extent possible. Waste management is
also carried out to recover resources from it. The reuse of
wastes could be done either within an industry or through
exchanges in a network of industries (industrial symbiosis).
As per an estimate, the Hazardous Waste generated in India
per annum is estimated to be about 4.4 million tonnes
(1999, Report of the High Power Committee on Management
of Hazardous Wastes). As per the Hazardous Waste Manage-
ment Rules, every industry generating Hazardous Wastes shall
have to obtain an authorisation for collection, reception,
treatment, transport storage and disposal of such wastes.
Also, any person who intends to be an operator of a facility
for the collection, reception, treatment, transport, storage
and disposal of Hazardous Wastes, shall have to also seek
authorisation for taking up any of these activities.
Lack of Hazardous Waste management facilities could lead
to illegal and wild dumping of wastes posing serious threats
to the environment. India has several facilities for treatment,
storage and disposal of Hazardous Wastes. However, the
number of these facilities is much lower than the target of
having at least one such facility in every district of the country.
The Common Treatment, Storage and Disposal Facility (TSDF)
set up at Dobbasapete near Bengaluru in Karnataka in recent
years is one such example.
E-waste is another issue related to waste management. MoEF
passed the E-waste (Management and Handling) Rules, 2011.
While until now waste goes through formal recycling facili-
ties, a good amount of e-waste in India is handled by the
informal sector. A successful example lies in Bengaluru, an
IT hub, wherein a part of the informal sector was formalised
to ensure proper e-waste management.
120914_Pathway_EID_ISOX3uncoated.indd 32 04.10.12 15:09
33
120914_Pathway_EID_ISOX3uncoated.indd 33 04.10.12 15:10
34
Case
EID Approach – Industrial Park Level
3.3.2 Hazardous Waste Treatment PlantTo manage Hazardous Waste (HW) in the state of Karnataka, the Karnataka State Pollution Control Board
(KSCB) initiated setting up of a Common Treatment, Storage and Disposal Facility (TSDF). The TSDF Dobbas-
apete near Bengaluru in Karnataka was developed in a systematic way following international norms from
inception to commissioning. It is meant to be a showcase for other states.
To start the process of establishing a TSDF, all the companies in Karnataka likely to generate Hazardous Waste
were surveyed to determine the quantity of Hazardous Waste existing in Karnataka. The assessment of 1,600
industries concluded the requirement of TSDF capacity to handle 40,000 tonnes of Hazardous Waste per
annum. This study also determined the types and characteristics of Hazardous Waste generated in Karnataka
from various industries. The suitability of the site was assessed with respect to geological, hydro-geological
and geo-morphological conditions and operational aspects, followed by a detailed Environmental Impact
Assessment (EIA). Further, a detailed technical concept, a financial proposal, and a note about its compliance
status with legal requirements were prepared.
To tackle the NIMBY syndrome (not in my back yard), an intensive public awareness campaign was conducted
in the surroundings (within a radius of 5 km of the site) for a period of seven months where all the stake-
holders were appraised about the project. Door-to-door campaigns and meetings with political leaders,
religious leaders, school teachers and technical university experts were conducted. Also, NGOs and local
communities were briefed about the project. A public hearing was conducted, and environmental clearance
was obtained for the project from the government.
Consultations with industries, industrial associations, government agencies and NGOs were carried out to
decide on the operator model for the TSDF. The operator model chosen for TSDF Dobbasapete was based
on the principle of DBOOT (Design, Build, Own, Operate and Transfer). In the initial years, the facility will
be monitored and managed by a Contracting Authority which is the Karnataka Industrial Areas Development
Board (KIADB). Later a Special Purpose Vehicle (SPV) company will take over. The SPV will have members
of industrial associations and Government representatives.
The TSDF is established on an area of around 93 acres of land and comprises a landfill, a storm water man-
agement system, a rain water harvesting system, a sewage water treatment system, a safety control system,
leachate treatment management ponds and monitoring wells to detect contamination of groundwater due to
accidental seepage of leachate. Also, the facility has an analytical laboratory where samples of waste from each
of the vehicles bringing in waste are tested. The TSDF has a green belt, which covers 30 % of the total area at
present and will further increase to 90 % after twenty years of usage.
By now, the TSDF Dobbasapete in Karnataka has land-filled 58,000 million tonnes of Hazardous Waste, and
has collected and stored 8,042 MT of it from 215 industries. Over the 51-years lifetime of the site, the total
investment costs are estimated to be about 54 crores (= 540 million) rupees.
120914_Pathway_EID_ISOX3uncoated.indd 34 04.10.12 15:10
35
"The establishment of the state-of-the-art TSDF in the KIADB industrial estate is a step towards promoting integrated waste management facilities within industrial areas. The Government of Karnataka feels that the industrial areas should be self sufficient in terms of environmental infra-structure development."
Hazardous Waste: CaseMeera Saksena, Additional Chief SecretaryIAS, Government of KarnatakaBangalore, Karnataka
120914_Pathway_EID_ISOX3uncoated.indd 35 04.10.12 15:10
36
Case
EID Approach – Industrial Park Level
3.3.3 Formalisation of E-Waste CollectorsBengaluru city, commonly known as the Silicon Valley of the country, is among the fastest growing cities of
Asia. It is home to many industrial sectors of which the biggest is the information technology sector. This
sector has a high proliferation of electrical and electronic products and e-waste. The city alone generates over
8,000 tonnes of e-waste annually, encompassing a range of obsolete electronic devices such as computers,
servers, main frames, monitors, etc.
Although there are a few authorised (formal) e-waste recyclers in the country, almost 90 % of the e-waste in
India is handled by the informal sector with crude reprocessing of material.
In Bengaluru, a pilot process for formalising e-waste recyclers was successfully implemented. A group of inde-
pendent e-waste recyclers were transformed into a company named E-WaRDD. Extensive consultations were
held to assess the past experience and cumulative capacity of the group members.
The newly formed company, E-WaRDD, has nine proprietors who have, on an average, 10 years of experience
in recycling e-waste. The factory has a built-up area of 91 m2 and includes a reception area, a storage area for raw
materials, a processing area, an office and a service lab. The factory has an ergonomic plant layout, adequate
lighting, as well as ventilation and dust extraction systems. The use of simple hand operated power tools has
been employed in the dismantling operations in order to maximise productivity and minimise accidents. The
process flow of the company has been optimised.
The effluents from the recycling process are in the form of solid waste, and liquid and air emissions. Although,
the quantities are minimal, appropriate measures have been taken to contain and manage the pollution aris-
ing out of it. Conservation measures like roof top rainwater harvesting have been incorporated. Health and
safety measures have also been taken into account for the plant.
E-WaRDD generates an average of 20 kg of solid waste per day comprising of thermocole, wood, glass and
paper. This is stored in separate bins and disposed of as municipal solid waste. The domestic wastewater
generated is about 120 litres per day. It is discharged into a decentralised wastewater treatment system / septic
tank and a soak pit that has been provided to handle this wastewater. The total Hazardous Waste generated
during the process of dismantling is a maximum of 300 kg per annum. The waste is collected, securely stored,
and disposed off for proper management.
120914_Pathway_EID_ISOX3uncoated.indd 36 04.10.12 15:10
37
“E-WaRDD is the first ever informal recy-cler in the country to become a formal recycler! This has encouraged five other informal sector units to be formalised in Karnataka. To ensure sustainability of all these formalised units, the E-Waste Agency (EWA) in Bangalore is striving to encou-rage the e-waste generating companies to route their waste to these units”
Ms. Uma Reddy, EWA Board Member and PresidentConsortium of Electronic Industries in Karnataka (CLIK), Bangalore
120914_Pathway_EID_ISOX3uncoated.indd 37 04.10.12 15:10
38
Concept
EID Approach – Industrial Park Level
3.3.4 Waste Water ManagementIndustrial processes are, in most cases, connected to water
usage. The effluent discharges and any resulting pollution
prove to be extremely harmful to the environment, especially
if the effluents are of toxic nature and are not properly
treated. In such cases, the neighbouring residential areas are
also at risk. However, there are numerous processes that can
be used to treat waste water as per its quantity and quality.
Traditionally, waste water was treated at the treatment plants
within the industries, which may include physical, chemical
and biological treatment processes. However in India, in
recent years, the concept of Common Effluent Treatment
Plants (CETP) is becoming a popular as well as effective way
to handle waste waters collectively by a group of industries.
CETP is the concept of treating effluents by collecting them
together from different industries, mainly from within an
industrial estate. Reasons to set up a CETP are manifold:
» Economies of scale in waste treatment can be achieved.
The costs of pollution abatement for individual compa-
nies can thus be reduced.
» The problem of lack of technical assistance and trained
personnel can be overcome as fewer plants require fewer
employees.
» The problem of lack of space can be overcome as the
centralised facility can be planned in advance to ensure
that adequate space is available.
» Pollution Control Boards gain easier access to a CETP as
compared to the access to small scale treatment facilities
of single companies.
» The organisation of the disposal of treated wastes and
sludge as well as the identification of reuse- and recy-
cling options can be managed more efficiently.
Particularly for SMEs, it is becoming difficult for each indus-
trial unit to provide for and operate an individual wastewater
treatment plant because of the scale of operations, lack of
space and technical manpower. Keeping in view the key role
played by small scale industrial units and the constraints in
complying with pollution control norms by these units indi-
vidually, the Ministry of Environment and Forests (MoEF) of
the Government of India initiated an innovative technical and
financial support scheme to ensure their growth in an envi-
ronmentally compatible manner. The scheme provides finan-
cial assistance for setting up of Common Effluent Treatment
Plants with Central Government subsidy of 25 % and State
Government subsidy of 25 % on the project capital cost.
India today has over 145 CETPs.
CETPs have different technological options including primary,
secondary and tertiary treatments and could even handle the
recycling of treated waste water. Online monitoring systems
for key parameters such as flow, pH, COD, etc., facilitate
proper control and compliance with the discharge standards.
Various business models exist for setting up and operation of
CETPs, such as BOO (Build, Own, Operate) and BOOT
(Build, Own, Operate, Transfer) by private operators and PPP
(Public Private Partnerships) where public bodies play an
important role in overseeing the management of the CETP
and even putting in investments or providing grant support
for making the facility viable and cost effective.
120914_Pathway_EID_ISOX3uncoated.indd 38 04.10.12 15:10
39
120914_Pathway_EID_ISOX3uncoated.indd 39 04.10.12 15:10
40
Case
EID Approach – Industrial Park Level
3.3.5 Common Effl uent Treatment PlantAs one of the components of transformation of existing industrial parks into Eco Industrial Parks, the Andhra
Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) is establishing Common Effluent Treatment Plants
(CETPs) in its industrial parks spread across the state of Andhra Pradesh.
The industrial parks at Mallapur and Nacharam were selected as pilot study areas for transforming into Eco
Industrial Parks. During the discussions with various stakeholders from the government, industries and
consultants, the problem of treatment of industrial effluents and the pollution of the adjoining water bodies
came to fore. It was decided to set up a CETP for treating the waste water in a collaborative process and
cost-effective way.
Initially, APIIC appointed a private operator on BOO (Build, Own, Operate) basis for the industrial parks at
Nacharam and Mallapur that are adjacent to each other. Considering the SME nature of industries in the two
industrial parks and to make the setting up of CETP viable, APIIC made three acres of land available for the
construction of the CETP. Also, the central and state governments provided grant support under the CETP
scheme. However, mainly due to difficulties on financing by the operator, especially to provide additional
facilities to meet the requirements of the Pollution Control Board, the construction of CETP got delayed.
In the meantime, particularly considering the long term sustenance of the CETP and its assured services,
industrial park management along with APIIC and the tenant companies in the park decided on setting up a
company in the form of a Special Purpose Vehicle (SPV) for day-to-day management of the CETP. The SPV
was also expected to raise additional funds required for the construction of the CETP. They also decided that
the private operator will build the CETP and operate it initially for a few years before handing it over to the
SPV for operation and maintenance. The intervention of the regulatory authorities, the setting up of an SPV
and the mobilisation of additional funds pushed the CETP operator to expedite its activities and it is expected
that the CETP will soon be completed and commissioned.
For collection of effluents from different industries in the industrial parks, a sewerage network of 21 km in
total length has been laid by APIIC. Upon completion, the CETP will cater to more than 650 industrial
units of Mallapur and Nacharam. The CETP will receive mixed effluents from different sectors such as engi-
neering, pharmaceuticals, chemicals, dyes and many others.
120914_Pathway_EID_ISOX3uncoated.indd 40 04.10.12 15:10
41
“As the Secretary of our Association, I care about the larger interest of all industrial units in the Industrial Park. The issue of setting up a Common Effluent Treatment Plant (CETP) was pending for long. Finally, we decided to set up a Special Purpose Vehicle Company to manage the CETP on our behalf. We are extremely happy that we are becoming the ultimate owners of our treatment plant.”
Srinivas N R, Secretary,Mallapur Industrial Units Welfare Association.Hyderabad, Andhra Pradesh
120914_Pathway_EID_ISOX3uncoated.indd 41 04.10.12 15:10
42
Concept
EID Approach – Industrial Park Level
3.4. Management Improvements
3.4.1 Information SystemsA management information system for industrial parks pro-
vides information needed for their environment-friendly
management. It provides the right information at the right
time to facilitate decision-making processes. A proper infor-
mation system includes technical data to be stored in a data-
base as well as geographical information to be stored and
handled in a spatial/ map database.
The Geographical Information System (GIS) is a combination
of spatial maps and attribute data, which helps as a manage-
ment information system to effectively plan and manage
industrial areas.
Main purposes of a GIS in the context of industrial parks are:
» Visualisation of information stored in a database in a
spatial context: For example presentation of the per-
formance of the industrial area with regard to environ-
mental quality, and status of infrastructure/ utilities
(layout of sewerage system and its physical condition
at different stretches, power lines, water pipeline layout,
etc.), etc. Visualisation makes it easier for industrial
park managers to quickly comprehend the problems
and look out for options for resolving them.
» Facilitation of planning and management in the indus-
trial park: This is done with regard to disaster risk
management (spatial display of relevant infrastructure,
display of specific risks, risk analysis). The understand-
ing of the problem and its spatial extent makes it easier
for park managers to identify appropriate solutions.
» Support in investment promotion: This could mean dis-
play of vacant plots and their features on a platform
accessible for potential investors or companies.
A variety of information can be included for enabling a
good industrial park management. For example, this could
include information on the location of the industry (plot
number, products manufactured, details for communication,
pollution data, etc.), infrastructure in the park (roads, sewer-
age system, drainage system, plantation, water supply etc.)
and its status of functioning, status of services, and taxes/
fees paid by members industries.
Information systems enable effective monitoring and control
on the part of industrial park management. Monitoring is
considered as the collection, recording, and reporting of
information concerning performance, while controlling
makes use of the data from monitoring and helps informing
about compliance with laws and regulations or planned per-
formance.
In an industrial area, the industrial park management could
take the responsibility to monitor environmental performance,
to handle regulatory reporting, as well as to train and provide
feedback to company personnel. Also, such monitored data
could be placed in a public domain, either through a display
system within and outside the industrial area, or even via
internet.
120914_Pathway_EID_ISOX3uncoated.indd 42 04.10.12 15:10
43
120914_Pathway_EID_ISOX3uncoated.indd 43 04.10.12 15:10
44
Case
EID Approach – Industrial Park Level
3.4.2 GIS-based Information SystemCommissioned in the late 1960’s, Naroda Industrial Estate is one of the oldest industrial estates of Gujarat.
The industries in the industrial estate are mostly dye, chemical, textile, ceramic, and engineering based. Pollu-
tion levels are often high. In order to establish a day-to-day management of services in the industrial park, the
planning of a GIS-based industrial information system has started.
Building a GIS-based information system for the first time is a challenge due to the common lack of data,
lack of hardware and software as well as lack staff and expertise. However, through a phased approach, GIS
could be built step by step. For Naroda Industrial Estate, the following methodology has been applied for
developing the first phase of its GIS:
» The GIS maps of the industrial estate have been prepared with reference to Google Earth (satellite)
images.
» The plot number and the corresponding industry information have been updated through a primary
survey and the directory of industries has been developed by the Naroda Industries Association (NIA).
» The infrastructure (water supply and sewerage network) data has been obtained from NIA.
» The road network has been documented and updated through a primary survey.
» Details of solid waste generated have been collected through a primary survey.
» The different layers generated for developing the GIS-based information system for the Naroda Industrial
Estate include plot-wise details (survey numbers, area of each plot, plot types), industry name, line of activ-
ity, products produced, waste generated, amenities available, drainage, high/ low tension lines, roads, etc.
Based on data sets, a GIS was developed. The team of the Naroda Industries Association which looks after
the management of the Naroda Industrial Estate was trained on the GIS utility and informed on updating of
information in the future.
120914_Pathway_EID_ISOX3uncoated.indd 44 04.10.12 15:10
45
“Naroda Industrial Estate is one of the first industrial estates in the state of Gujarat. The industrial estate is known for being proactive and for constantly striving towards improvement. Nevertheless, data collection is difficult. But once it’s done, one can work with it year after year with just a little time needed for updating it and adapting to new developments. I really really believe that putting in some effort in the beginning pays off very soon.”
Testimonial from Mr Rayjibhai Patel, President, Naroda Industries AssociationAhmedabad (Naroda), Gujarat
Figure 3.4.2 Map of Naroda Industrial Estate
120914_Pathway_EID_ISOX3uncoated.indd 45 04.10.12 15:11
46
Case
EID Approach – Industrial Park Level
3.4.3 Monitoring and ControlMonitoring and control are relevant activities in every industrial production process in all industrial areas.
The collection of suitable data enables the management of industrial parks to monitor environmental
performance, handle reporting and offer appropriate trainings for personnel. In India, extensive air and water
quality networks exist through the central and state pollution control boards. Additionally, individual indus-
tries undertake monitoring. The Central Pollution Control Board (CPCB) has set up continuous air quality
monitoring stations across India. The advantages from these automatic continuous monitoring stations are:
» continuous information flow (including warning)
» accuracy and precision of information
» low response times (less than one minute)
» high temporal resolution in non-stop coverage.
For ensuring continuous data acquisition from these stations, CPCB was successful, with the support of GIZ,
in making this data regularly available on its website www.cpcb.nic.in. Information is drawn from four air
quality monitoring stations and a mobile laboratory in Delhi.
Another important aspect in monitoring is the environmental laboratory. Laboratories play an important role
in assessing the status of the environment. They carry out the analysis of water, air and soil, and of biotic
components (flora, fauna and human beings). The National Reference Trace Organics Laboratory at CPCB is
one such laboratory having advanced features. This laboratory is capable of analysing Pesticides, PCBs,
Dioxin & Furan, HCB, THM, HAPs, BTEX and Carbonyls.
Similar laboratories have come up at CPCB Bengaluru and Karnataka State Pollution Control Board in
Bengaluru.
120914_Pathway_EID_ISOX3uncoated.indd 46 04.10.12 15:11
47
S. Ram PrasadEngineer-in-ChiefAndhra Pradesh Industrial Infrastructure Corporation (APIIC)Hyderabad, Andhra Pradesh
“In terms of monitoring and control we work closely together with the Andhra Pradesh Pollution Control Board (APPCB). They are implementing guidelines from the Central Pollution Control Board and lately created environmental cells with special experts. The estate management provides them with data on the various levels of pollution.”
120914_Pathway_EID_ISOX3uncoated.indd 47 04.10.12 15:11
48
Concept
EID Approach – Industrial Park Level
3.4.5 Disaster Risk ManagementIn the aftermath of the Bhopal gas tragedy (1984), the Indian
government introduced the Environment (Protection) Act,
1986, under which the Chemical Accidents (Emergency Plan-
ning, Preparedness and Response) Rules, 1996 were brought
out to deal with chemical accidents. Subsequently, the Disaster
Management Act, 2005 was brought out by the Indian gov-
ernment providing for effective management of disasters.
Eventually, a national action plan has been published for
effective on-site as well as off-site emergency management
planning for both industry and local/ regional governments.
Management of on-site emergencies and off-site emergencies
is the key aspect of disaster risk management. An on-site
emergency plan is needed to cope with accidents/ incidents
that take place in a factory that affect factory premises and
the persons working in the factory. An off-site emergency
plan is needed for accidents/ incidents that spread outside
the factory premises. Whether catering to on-site or off-site,
the main objectives of an emergency plan are:
a. to control and contain the incident/ accident and if
possible, eliminate it
b. to minimise the effects of the incident on persons,
property and environment.
Industrial disaster risk management is significantly dependent
on the awareness and skills of the actors involved, as well as
on the cooperation between them. The key actors are:
» Industries: management and employees of all hazard
industries.
» Authorities: policy makers from relevant ministries, dis-
trict administration, crisis groups, as well as officials-in-
charge of the district disaster plans under the Disaster
Management Act.
» Emergency and rescue teams: from the district adminis-
tration, police, fire stations, medical services, civil
defence, armed forces, coast guards, home guards, trans-
port agencies.
» Public: mutual aid response groups, NGOs, and educa-
tional institutions.
» Training providers and experts: offering human resource
development services for the targeted groups.
Owing to the fact that technical knowledge skills play such
an important role in disaster risk management, the Disaster
Management Institute, Bhopal, as a training provider, is offering
15 training modules based on international best practices.
Topics included in these modules are Confined Space Safety,
Safety in Transportation of Hazardous Chemicals, Human
Factors in Accidents and Prevention, Job Safety Analysis, Risk
Assessment and Management, Consequence Analysis, On-site
Emergency Plan, and Off-site Emergency Management Plan.
Since capacity development is one of the most important
aspects, these modules will help trainees in developing
knowledge and skill in specific thematic areas to reduce the
risk of industrial disasters.
Furthermore, a web-platform was developed, which continu-
ously provides background material and up-to date news
about the topic (www.hrdp-idrm.in). The website offers the
opportunity to establish networks for an exchange of experi-
ences online.
4) The training modules can be downloaded from: www.hrdp-net.in/idrm/content/e5783/e17327/index_eng.html
120914_Pathway_EID_ISOX3uncoated.indd 48 04.10.12 15:11
49
120914_Pathway_EID_ISOX3uncoated.indd 49 04.10.12 15:11
50
Case
EID Approach – Industrial Park Level
3.4.6 Interstate considerations for Off-Site Emergency PlansOn-site emergency plans have to be prepared by all companies which are considered Major Accident Hazard
(MAH)5 industries. As per the Manufacture, Storage and Import of Hazardous Chemicals (MSIHC) Rules,
1989, published under the Environment Protection Act, 1986, the chief inspector of factories of each state
is required to evaluate these on-site emergency plans. Furthermore, on-site emergency plans prepared by
MAH companies are vital inputs for the preparation of off-site emergency management plans for entire
industrial areas. The plans highlight how emergencies could be managed in case of any accident due to toxic
release, fire or explosion. Under the MSIHC rules, the district collector is responsible for preparation,
monitoring and evaluation of off-site emergency management plans.
In the district Rupnagar of the state of Punjab, various MAH industries are located. Since some of these com-
panies are located at the border to another state, Himachal Pradesh, severe emergencies can be considered an
interstate issue. To give an example, from the modelling of impact from catastrophic chlorine release from
an alkalies and chemicals industry located in Punjab close to the border of Himachal Pradesh, it was observed
that the fatal concentrations of chlorine were found to go into the state of Himachal Pradesh. This called for
joint actions and preparedness by the local/ district administrations in both Himachal Pradesh and Punjab.
Following conclusions were made from this exercise:
» location of any MAH industries near state boundaries should be considered in every off-site emer-
gency plan
» effective coordination meetings between the State Disaster Management Authorities (SDMAs) of neigh-
bouring states should be held
» all these activities should be monitored and reviewed by the National Disaster Management Authority
(NDMA) with the support of SDMAs.
On-site and Off-site Emergency Management PlansConcept of On-site/Off-site Emergency Management Plan: Chemical emergencies are usually managed at state, district and local levels. However, if it is assessed that the consequences of crisis exceed the capacity of the State Government, then ministries at the central level are activated for prompt response by mobilising support in terms of emergency relief teams, support personnel, specialised equipments and other facilities depending upon the scale of crisis.
An effective emergency plan must strive to achieve the following: » identification of hazards » risk analysis and its assessment » reduction of the assessed risk at source » protection of the community » information availability of resources for emergency response in terms of manpower and material » education and awareness of the community and workers » effective coordination of government responding agencies » reduction of the environmental impact.
5) MAH industries have been classified in MSIHC Rules, 1989
120914_Pathway_EID_ISOX3uncoated.indd 50 04.10.12 15:11
51
“I am guiding the development of disaster risk management since many years. Roles and responsibilities of different stakehol-ders are not always obvious. They have to be made explicit in meetings, and subse-quent to this, in plans. Especially, inter-state issues have to be considered. There can be no tolerance for not being prepared!”
Dr Rakesh Dubey, DirectorDisaster Management Institute Bhopal,Madhya Pradesh
120914_Pathway_EID_ISOX3uncoated.indd 51 04.10.12 15:12
52
Concept
EID Approach – Industrial Park Level
3.4.7 Stakeholder ParticipationStakeholders have to be included to guarantee a sustainable
implementation of planned changes. Stakeholders include all
those individuals and groups affecting, and / or affected by
decisions, policies and actions taken for achieving Eco Indus-
trial Development.
Simply getting official consent from the representatives of
the government, of an industry or of the community often
does not constitute true consent, understanding, or commit-
ment for planned activities. A broader group of stakeholders
can be approached through various educational, deliberative,
and collaborative methods to take an active part in shaping
development.
Before starting a participation process, it is necessary to con-
centrate on intended goals, which may be the following:
» Get approval from stakeholders: An example for this is
the Public Consultation Process, which was established
prior to the construction of a Hazardous Waste Treat-
ment Storage and Disposal Facility (TSDF) in Dobbasa-
pete, near Bengaluru in Karnataka. Within the radius
of five kilometres of the site, it took seven months to
inform the stakeholders on the upcoming facility.
» Learn from stakeholders: Examples for this are Eco
Club Meetings at the industrial park in Mallapur,
Andhra Pradesh. During these meetings, company
representatives exchange experiences on environment
and climate-friendly production processes and also
share the environmental problems faced by them seek-
ing solutions or ideas from other industries.
» Educate stakeholders: An example of this is a four-day
Certificate Course on Eco Industrial Park Planning and
Management developed by the Indo German Institute for
Advanced Technology at Vishakhapatnam (Andhra
Pradesh, India), ifanos c&p (Germany), and the Center
for Development Research (ZEF), Germany. This course
has been widely applied in Andhra Pradesh for the offic-
ers of the Andhra Pradesh Industrial Infrastructure Corpo-
ration Ltd (APIIC).
» Identify common solutions for given challenges: An
example for this is the MANA CETP which is a Special
Purpose Vehicle (SPV) company consisting of stakehold-
ers from the industrial parks of Mallapur and Nacharam
in Andhra Pradesh who are concerned about the solu-
tions for their waste water treatment through a Common
Effluent Treatment Plant (CETP).
» Brainstorm about future activities: An example for this
is the Round Table on Eco Industrial Parks, helt at the
Administrative Staff College of India, Hyderabad in 2009.
The purpose of this was to share lessons learnt and expe-
riences gained from the on-going efforts on developing
Eco Industrial Parks in Andhra Pradesh and collection of
ideas on further activities.
To achieve these goals, it is necessary to determine stakeholders
who would be actively involved in the process. Stakeholder
analysis helps to gain an understanding of the diverse per-
spectives, needs, and desires of the relevant groups. Forms of
stakeholder participation can be very diverse. In some cases
one meeting is sufficient, while for other purposes, a contin-
uous process needs to be established. In the context of Eco
Industrial Development, often the question is"Who is in
charge of initiating and sustaining stakeholder participation?"
The process of public hearings as in the case of setting up a
waste treatment facility is more formalised as against regular
meetings of company representatives to exchange experiences
on environment and climate-friendly production processes
that take place on a voluntary basis. Nevertheless, whoever
plans to initiate Eco Industrial Development has to know the
reason to include stakeholders, which ones to include, how
to involve them, and what possibilities are there to sustain
introduced processes of participation.
120914_Pathway_EID_ISOX3uncoated.indd 52 04.10.12 15:12
53
120914_Pathway_EID_ISOX3uncoated.indd 53 04.10.12 15:12
54
Case
EID Approach – Industrial Park Level
3.4.8 Stakeholder Workshops for Planning Eco Industrial Park ActivitiesWhen the Andhra Pradesh Industrial Infrastructure Cooperation (APIIC) decided to promote the idea of trans-
forming their existing and upcoming industrial parks into Eco Industrial Parks, they planned to initially start
activities in two pilot parks. One of them is the Industrial Park Mallapur (IP Mallapur).
To decide which activities to start with, a stakeholder workshop with the title IDA Mallapur – Eco Industrial
Estate in the Making was organized by the Environment Protection Training and Research Institute (EPTRI),
Hyderabad, in 2005. Participants comprised of industry representatives, senior officials of Andhra Pradesh
State Pollution Control Board (APPCB), senior officials of APIIC, representatives of the Ministry of Environment
and Forest (MoEF), and resource persons from EPTRI and GIZ.
The one-day workshop started with the presentation of technical inputs from different experts. Participants
were asked to discuss and present their views.
As a result of the group discussions and a plenary gathering, the following decisions were taken jointly:
a. Priority infrastructure that immediately needed to be set up for IP Mallapur was identified as follows:
» Storm water drainage system including water harvesting.
» Treatment systems for the treatment of industrial effluents. This includes a conveyance system, pre-
treatment system at individual industrial level, common treatment system at estate level, and final
treatment and disposal systems of treated wastewater.
» Storage facilities for solid and Hazardous Wastes from IP Mallapur.
b. The land required for the construction of waste water treatment system including conveyance system
would be provided by APIIC.
c. Detailed project reports for all the infrastructure requirements would be prepared. The issue of financ-
ing/ funding sources should be covered while preparing these detailed project reports.
d. APIIC will contribute up to 25 % of the costs for infrastructure set-up. The balance will have to be
borne by the service provider. Funding from governmental agencies such as the Indian Ministry of Envi-
ronment & Forests for setting-up of a CETP may be explored. All the costs towards operation and main-
tenance of common infrastructure/ facilities will be borne by the user industries.
e. A full time environmental manager will be engaged to take care of all environmental aspects including
following up with all the relevant stakeholders for planning/ designing/ implementation of the proposed
infrastructure development in the estate.
f. All the industries made formal commitments to participate in the training programs and requested train-
ing programs for their staff members as well.
120914_Pathway_EID_ISOX3uncoated.indd 54 04.10.12 15:12
55
“Stakeholder workshops are very important to gain a common understanding on what should be done, for what purpose and with whom? When we decided to have IP Mal-lapur as our pilot Eco Industrial Park, it was very important to ask representatives of the companies about their priorities. Without their ownership, we couldn’t have changed the park for the better. We all have to join hands to get things going.”
Ch. Vinod KumarCommissioner, IP Nacharam & IP MallapurAndhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC)
120914_Pathway_EID_ISOX3uncoated.indd 55 04.10.12 15:12
56
Concept
EID Approach – Industrial Park Level
3.5. Climate Change Considerations
3.5.1 Climate Change MitigationGreenhouse Gas (GHG) emissions have been identified as the
main cause for human induced climate change. Hence, decou-
pling of GHG emissions from economic growth to mitigate
climate change has become a global challenge. GHG emis-
sions, mainly the emissions of carbon dioxide (CO2) due to
the combustion of fossil fuels, have risen dramatically since
pre-industrial times. Globally, energy-related CO2 emissions
have risen 145-fold since 1850, from 200 million tonnes to
29 billion tonnes a year, and are projected to rise another
54 % by 2030 (UNEP 2011).
India is a party to the United Nations Framework Convention
on Climate Change (UNFCCC) and the objective of the Con-
vention is to achieve stabilisation of Greenhouse Gas concen-
trations in the atmosphere at a level that would prevent dan-
gerous anthropogenic interference with the climate system.
India could play a very important role in addressing climate
change issues.
In 2008, India released a National Action Plan on Climate
Change (NAPCC) which outlines how India plans to address
national climate change concerns over the coming years with-
out compromising on the country’s development.
In the case of industrial parks, there exist substantial poten-
tials. In a rough estimate undertaken for a few industrial
estates in Andhra Pradesh, the four existing parks released
approximately 2.1 to 3.5 million tonnes of CO2 equivalents.
It was estimated that substantial carbon emission reductions
can be achieved even with implementation of only a few
measures such as improved environmental infrastructure for
waste water, usage of renewable energies, and improved
processes with reduced energy consumption.
The benefits of strong and early action to curb GHG emis-
sions and to mitigate the effects of climate change could far
outweigh the economic cost of not acting. Furthermore,
mitigation measures need not necessary mean costs. Cost
savings could be achieved through appropriate planning and
implementation of measures and achieving efficiencies in
production processes.
For example, in a small scale industry located in Hyderabad,
by installing a heat exchanger to utilise the latent heat of the
vapours from an open evaporator, the anticipated reduction
in coal consumption was over 100 tonnes per year.
In another case in Korea, it was observed that 650 industrial
parks comprise 63 % of industrial emissions and now 12
projects are being implemented for transforming existing
industrial parks into eco-friendly parks.
Ones completed, the eco-friendly parks are likely to yield
economic benefit of $ 44.2 million and result in GHG emis-
sion reduction of 197,510 tonnes / year.
120914_Pathway_EID_ISOX3uncoated.indd 56 04.10.12 15:12
57
120914_Pathway_EID_ISOX3uncoated.indd 57 04.10.12 15:12
58 EID Approach – Industrial Park Level
3.5.2 Public Private Partnership on Co-ProcessingA Public Private Partnership (PPP) between GIZ and Holcim Ltd. (Holcim is one of the world´s leading
producers of cement and aggregates) was implemented in India and a number of other countries. The objec-
tive has been to explore options for using otherwise worthless, or sometimes problematic waste material as
a valuable resource in the energy intensive cement industry.
According to the principles of Eco Industrial Development (EID), waste can be a valuable input for production
processes in the industrial sector. Inappropriate disposal of waste causes contamination of soil, water resources
and the atmosphere, and consequent deterioration in the living conditions and health of the population.
Cement consumption is increasing, especially in emerging countries. The cement industry consumes a significant
amount of natural resources and energy. One way of reducing emissions in the production process is to grad-
ually replace fossil fuel and primary raw materials with waste-derived materials. Co-processing is the term used
for the use of alternative fuels and raw materials from waste by industries so as to substantiate their resource and
energy requirements. For co-processing, the waste should contain a high calorific value (at least 8MJ/kg), or a
substantial raw material value (at least 50 % ash or 80 % raw material in ash), or a combination of both. Co-
processing fully respects the waste management hierarchy of avoidance, minimization and recovery of materials.
This has to be considered first at all times.
A study conducted by the FHNW (University of Applied Sciences North-western Switzerland) in 2008 reveals that
the expected energy content in disposed waste within 25 countries of the European Union could almost satisfy
the energy requirements of the entire industry in Europe by the year 2030.
The figure below illustrates the climate relevance for co-processing in the cement industry when waste is not
disposed separately in an incinerator but co-processed in a cement plant, thus reducing the volume of
GHG emissions stemming from the use of fossil fuel.
Although, co-processing proved to be successful mainly in the cement industry, it can be stated that the
concept is applicable for any other resource and energy intensive industry, which makes it a recommendable
option to lower the industry’s environmental and climate footprint. The PPP efforts between GIZ and
Holcim resulted in internationally recognized guidelines on co-processing. The endeavours have promoted,
disseminated and anchored co-processing of waste in cement kilns in a participatory way. Legislative gaps
have been closed and technological expertise transferred. The guidelines and a training kit with eight modules
can be downloaded from www.coprocem.com.
Case
120914_Pathway_EID_ISOX3uncoated.indd 58 04.10.12 15:12
59
Figure 3.5.2 Contribution of Co-processing to CO2 Reduction
Sou
rce:
Stu
dy
rep
ort b
y F
HN
W, 2
00
8
Co-p
roce
ssin
g an
d CO
2-Red
uction
EmissionsCO2
Waste Waste
EmissionsCO2
Emissions CO2
Coal Coal
Landfill or dedicated
incinerator*+
Energy IntensiveIndustry (EII) Energy Intensive Industry (EII)
* Without energy recovery
120914_Pathway_EID_ISOX3uncoated.indd 59 04.10.12 15:12
60
Concept
EID Approach – Industrial Park Level
3.5.3 Climate Change AdaptationThe whole world is feeling the impacts of climate change. It
is generally becoming warmer, rainfall is getting more erratic,
the sea level is rising and extreme weather events are becom-
ing more frequent and intense. Prolonged periods of drought,
floods and shifting climatic zones are endangering develop-
ment successes.
During the 20th century, earth’s mean global temperature
rose by almost 0.74 ̊ C and is expected to increase by a further
1.1 ̊ C to 6.4 ̊ C by the end of the 21st century (IPCC 2007).
Very minor changes in temperature can have major impacts
on systems on which human livelihoods depend, including
industries. For example, the availability of water has become
limited – this is an important factor for most production
processes. Industrial areas are often sited near the sea because
of infrastructural advantages. The loss of land due to sea
level rise can have a high impact. Extreme weather events
such as floods and heat waves are significant threats to value
chains as well as on infrastructure.
India with its long coastal line and its wide variety of geo-
graphical regions, biodiversity and natural resources, is one
of the most vulnerable countries to climate change. Risks
from the impacts of climate change on businesses vary greatly,
depending on sector and location.
Climate change impacts on businesses can be classified into
direct and indirect impacts. Direct impacts are caused by
extreme weather events and changes of temperature which
affect, for example, infrastructure and transportation. Indi-
rect impacts include such impacts as unavailability of inputs
and changed market demands. Both types of impacts can
cause a significant rise in business costs, and can even pose
threats to the core business itself.
Few potential concerns for companies due to climate change
include increasing costs for natural resources and raw materials;
water scarcity; energy scarcity; threats to human health; trans-
portation risks for materials, goods, and people; decreased
agricultural productivity and material supply; floods, ero-
sion, and temperature rise; and risks due to changing
weather patterns. Other impacts may be changed demands
of customers for goods and services or the health of the
workforce getting affected, for example due to floods.
Infrastructure and transportation is highly vulnerable. Such
impacts can cause significant rise in business costs.
Thus, climate change adaptation in the industrial sector is a
priority in order to avoid business losses. It becomes impor-
tant for decision makers on national, regional, and industrial
park levels, as well as on the level of single companies, to
prepare for or to adapt to the consequences of climate change.
The industries should look at the risks holistically from the
perspective of climate change adaptation, and develop a com-
prehensive strategy to address them.
In addition to the risks associated with climate change impacts
for industries, there are also business opportunities arising
from the change of circumstances. New products, processes
and services would become necessary to cater to changed
needs. These include climate resilient materials and products,
climate resilient value chains, microfinance and micro-insur-
ance, etc. For example, the State Action Plans for Climate
Change (SAPCC) of Gujarat and Rajasthan provide business
opportunities in the field of climate-proofing infrastructure
such as roads and bridges. New adaptation infrastructure
needs to be developed as well. Examples are new drainage sys-
tems to cope with severe flooding or innovative water storage
systems to cope with prolonged droughts. Here, companies
could potentially join forces with government entities creating
effective public-private partnerships.
Adaptation measures are required both at the industry level
as well as at the industrial park level. Especially infrastructural
aspects, for example, providing drainage to deal with excess
rains or floods, or modifying the designs and alignment of
the transportation network, or providing green buffers, etc.
could rather be addressed at industrial park level than at the
level of individual industries.
120914_Pathway_EID_ISOX3uncoated.indd 60 04.10.12 15:12
61
120914_Pathway_EID_ISOX3uncoated.indd 61 04.10.12 15:12
62
Case
EID Approach – Industrial Park Level
3.5.4 Climate Change Vulnerability AssessmentVulnerability may be described as a function of exposure of a system to the impacts of climate change, the
sensitivity of the system and its adaptive capacity. It takes into account that socio-economic systems can
reduce or intensify the impacts of climate change.
Vulnerability of an industry depends on:
» the type and magnitude of the effect of climate change to which it is exposed (exposure)
» how sensitive is it to this change or to what extent it gets affected (sensitivity)
» the extent to which the system is capable of adjusting or adapting to this change (adaptive capacity).
In 2011, the Gujarat Cleaner Production Centre (GCPC) piloted a Climate Change Vulnerability Assessment
in Industries. The assessment aimed at testing and establishing a methodology for further replication. The
assessment took place in the Naroda Industrial Estate near Ahmedabad in the state of Gujarat.
It was observed that in the past forty years, Gujarat experienced 12 years of drought and four situations of
major scarcity. The intensity and return period of major drought events have increased substantially in the
last couple of decades. In addition to this, a general increase in rainfall with more intense rain events was
expected. To find out what impacts such changes in the climate may have on industries, an assignment grid
was prepared.
Having identified a variety of impacts would lead to step two: assessing – a) the probability that a specific
impact will occur, and b) the amount of damage it will cause. These two key factors determine the level of
risk to the industries. The subjectivity of vulnerability assessments is inevitable. Nevertheless, experts’ advice
and technical data should be considered and care should be taken that prioritisation is not driven by special
interests. Once the impacts are identified and weighed, possible adaptation measures are formulated.
For the industries in the Naroda Industrial Estate, the reactive and anticipatory adaptation measures identified
are given in Table 3.5.4.
Figure 3.5.4 Vulnerability of a System
Sou
rce:
ad
apte
d fr
om A
llen
Con
sult
ing
Gro
up
Potential Impact
Vulnerability
Exposure Sensitivity
AdaptiveCapacity
120914_Pathway_EID_ISOX3uncoated.indd 62 04.10.12 15:12
63
“While carrying out the assessment, we came to know that SMEs are not prepared for climate change and did not even know that it can affect their business. The worksheets are self-explanatory and easy to work with. Our views have been broa-dened on how we can react to cope with future challenges – and how we can take action now.”
Neerja DesaiSr Programme OfficerGujarat Cleaner Production Centre
Vulnerable Sources Reactive Adaptations Anticipatory Adaptations
Water Resources
» Protection of groundwater resources » Improved management and mainte-nance of existing water supply systems » Protection of water catchment areas » Improved water supply » Groundwater and rainwater harvest-ing and desalination
» Better use of recycled water » Conservation of water catchment areas » Improved system of water management » Water policy reform including pricing and irrigation policies » Development of flood controls and drought monitoring
Energy Resources
» Improved energy supply » Increasing energy efficiency by proper measures like putting machine on invertors
» Better use of recycled energy » Developing the efficiency of machines » Use of renewable sources at maximum extent
Transportation
» Public health management reform » Improved housing and living conditions » Improved emergency response » Use of electric or compressed natural gas based vehicle or hybrid vehicle » Implementation of vehicle emission standard » Executive employees use public transportation
» Development of early warning system » Better and/or improved disease/vector surveillance and monitoring » Improvement of environmental quality » Changes in urban and housing design » Focus on mode switching and other behaviours affecting transportation » Encourage the use of Cleaner alternative fuel
Table 3.5.4 Reactive and anticipatory adaptation measures in Industries
120914_Pathway_EID_ISOX3uncoated.indd 63 04.10.12 15:12
64
120914_Pathway_EID_ISOX3uncoated.indd 64 04.10.12 15:12
65
Concept
4.1 Eco-performance
Eco-performance is an approach that targets improved efficiencies,
cleaner production, reduced consumption of resources and
reduced environmental impacts while increasing the overall
profits of the enterprises. The approach focuses on ecological
as well as economic benefits to companies. Individual companies
feel the growing demand on resources and the pressure to
increase their competitiveness to cope with rising prices of
their inputs. Further, they are compelled to take environmen-
tal compliance and also upcoming issues like climate change
mitigation and adaptation into due consideration.
There are several tools available for achieving eco-performance.
Certain tools focus on the individual company level, while
others on a network or a group of companies.
EcoProfit is one such promising training tools which is applied at
individual industry level. Its implementation was supported
by GIZ, and nurtured, tested and proven in more than 120
Indian SMEs since the year 2003. The EcoProfit tool aims to
reduce the cost of operations in companies by optimising pro-
cess operations and minimising the need for raw materials,
water, waste and energy. Similar tools like Profitable Environ-
mental Management (PREMA®), concepts like Cleaner Produc-
tion (CP), environmental audits and energy audits are similarly
applied at individual industry level. Though each concept has
a different approach, the common objective is to contribute to
economic and environmental performances of the industries.
In terms of approaches that facilitate a climate and environ-
mentally friendly production in individual companies, there
are four distinct approaches that are generally followed:
» Command and control: Enforcement of laws and
standards to force companies to comply.
» Facilitation: Introduction of economic instruments to
encourage companies to take action. One example for
an economic instrument is grant support for introduc-
ing cleaner production measures. Other instruments in
use in various countries include environmental taxes,
subsidies for energy auditing, funding for the introduc-
tion of new technologies and the option for companies
to participate in emission trading.
» Capacity development: Training and providing support-
ive information, including guidelines, tool kits etc. to
support companies in identifying and taking specific
measures. Education and training for resource efficiency
aims to build capacity and to ensure that participants
are able to address environmental challenges from their
own level or in cooperation with their company’s man-
agement. As stated above, two examples for successful
training methods are PREMA® and EcoProfit training
programmes.
» Cooperation: Developing networks to facilitate coopera-
tion and exchange of ideas.
Information centres as well as web-based information platforms
provide information on resource efficiency and related topics
to actively promote the concept. Their main target group is
private companies, including SMEs that often lack access to
the latest information and do not have the capacity to stay
up-to-date with every technological development in the mar-
ket. Information centres, thus, play an important role for
improving the technological competence of enterprises and
for providing up-to-date knowledge on resource efficiency.
Networks between companies, like waste minimisation circles,
benefit participants through mutual backing while exchanging
experiences on production activities. Expected economic bene-
fits and reduced environmental pollution motivate the involved
companies to participate in collective arrangements that are
expected to lead to improved production activities.
4. EID APPROACH: AT INDUSTRY LEVEL
4.1 Eco-performance: Concept
4.2 Resource Efficiency in the Steel Sector: Case
4.3 EcoProfit for Resource Efficiency in a Rubber Company: Case
4.4 Energy Savings through Co-Generation of Electricity and Steam: Case
120914_Pathway_EID_ISOX3uncoated.indd 65 04.10.12 15:12
66
Case4.2 Resource Effi ciency in the Steel SectorThe steel industry in India is the backbone for industrial development because of the demand of steel in diverse
key sectors. It is a prospective business sector with estimations that the production levels of steel will more
than double in the next 20 years. It is estimated that the steel production capacity in the country will grow
from approx. 66 million tonnes (5 % of the global production) in 2010 to 143 million tonnes per year in 2020.
Steel is a commodity product, and therefore, it is price sensitive. This means that low manufacturing costs
are important for the industry. For that reason, most steel mills in the world are large scale facilities – cutting
costs by economies of scale.
The situation in India is different. Although there are only a few big integrated steel mills, the number of
small direct reduction companies (producing sponge iron from coal and iron ore), smelting shops (producing
crude steel in small electric induction furnaces) and so-called re-rolling shops (using steel ingots for rolling
long products like bars and rods) is in hundreds.
Unfortunately, the steel industry, globally as well as in India, is one of the major sources for CO2 emissions.
In India, it is estimated that about 8 % of total CO2 emissions are caused by the steel industry6 (2007).
However, while the global average of CO2 emissions has been reduced to 1.8 tonnes CO2/ tonne steel, India’s
emission intensity is still 30 % higher (2.4 tonnes CO2 / tonne steel). Thus, by adopting strategies such as
resource efficiency and application of best available technologies in India, there is a huge potential for reduc-
ing the intensity of CO2 emissions. This implies that India could potentially save raw materials like coal
and iron ore as well as secondary energy, that is, electricity, while cutting on about 100 million tonnes CO2
emissions.
Important technology areas are direct reduction, blast furnaces, furnaces for smelting and rolling, and numerous
specifically developed solutions. Moreover, especially the hundreds of small steel shops need support in terms
of operational excellence, for reducing CO2 emissions. Through energy management, resource efficiency can
be improved by approximately 10 %. This offers tremendous opportunities to the steel industry itself due to
the reduction in energy consumption and costs intrinsically tied to immense CO2 reductions.
Examples of measures required for reduction of CO2 emissions and process improvement are shown in
Table 4.2.1.
6) Planning Commission, Government of India; Centre for Science and Environment
EID Approach: Industry Level
120914_Pathway_EID_ISOX3uncoated.indd 66 04.10.12 15:12
67
“The steel sector plays a very critical role in India – and surely, it is a major contri-butor to emissions. Most of the players from the large and medium sector under-stand the responsibility for controlling the CO2 emissions and are initiating active steps to reach international levels in due course of time. The small scale segment needs to be coached, guided and motiva-ted to achieve similar significant improve-ments. I strongly believe that a large opportunity exists for CO2 reduction in the Indian steel industry.”
Mr B Muthuraman, Vice Chairman,TATA Steel, Mumbai, Maharashtra
Process Step CO2 Reduction Solution
Sinter Plant » Sinter plant heat recovery
Coke Oven » Coke dry quenching
Blast Furnace
» Use of high quality ore » Direct injection of reducing agents (coal injection, pulverised coal injection, gas injection, natural gas injection)
» Improved blast furnace control systems » Hot blast stoves automation » Top pressure recovery turbines
Smelting Reduction » New processes – Finex/POSCO, IT mk3/Kobe Steel
Direct Reduction » Coal gasification
Basic Oxygen Converter » Energy recovery from the BOF gas » Increased energy efficiency by automation
Electric Arc Furnace
» Scrap preheating » Improved process control » Transformer efficiency » Bottom stirring/stirring gas injection
Table 4.2.1 Measures for CO2 emissions reduction
120914_Pathway_EID_ISOX3uncoated.indd 67 04.10.12 15:12
68
Case4.3 EcoProfi t for Resource Effi ciency in a Rubber CompanyA tool for cleaner production and improved environmental performance is EcoProfit. This tool is applied in individual industries, in batches of 12-16, and takes about 10-12 months for completion of one batch of industries. This tool was introduced in India in 2002, and since then, 10 clusters have been completed in which around 120 industries have participated.
EcoProfit is considered a win-win model which economically strengthens industries by using environment-friendly technologies and simultaneously improves the ecological situation of the region. It enhances the efficiency of industries, reduces demand of raw materials and energy, and minimizes associated environmental impacts with little or no investment.
EcoProfit follows an approach with a shift of paradigm from end-of-pipe solutions such as treating waste and emissions to a preventive approach such as minimising waste and emissions in the process itself with no or low costs. The key steps in applying the EcoProfit tool include: In-depth analysis, process optimisation and capacity building. For details, visit http://ecoprofit.com. Recently, in one of the concluded EcoProfit activities, 22 % of the cost for activities implemented resulted in immediate payback, and 69 % resulted in short term payback (within one year). Only 9 % of the investment budget is applied with long payback expectations (of more than one year).
EcoProfit is a standard tool implemented in cooperation with STENUM Environmental Consulting and Research Company GmbH, Austria. To achieve the dual benefit of environmental and economical gains, EcoProfit works on three pillars: » technical Training Workshops (with group work, calculation tasks, and fun learning) » individual Consulting Visits (panel of international and national experts helping to find saving
potentials by strongly correlating the learnings from training topics and referring them with practical problems)
» evaluation (calculating and justifying the savings out of suggestions made).
Subsequent to the application of the EcoProfit tool, M/s Agarwal Rubber Ltd., a manufacturer for high quality automobile butyl tubes, was able to achieve impressive improvements in resource efficiency. The company produces about 12,000 tubes per day, ranging from tubes for two wheelers to aviation transport. In the past, the company was generating rubber waste of around one tonne / day (approximately 300 tonnes / year.) Major achievements of the industry on account of using the EcoProfit suggestions are summarised below: » Reduction in water consumption: 12,000 kilolitres per year of raw water was saved as a result of reduc-
tion in steam generation owing to decrease in steam losses. » Steam leakage reduction: Steam leakages constituted 30 % of total steam generation. Most of the leakages
were rectified which resulted in the reduction of steam generation up to 40 tonnes / day, leading to 1,785 tonnes / year of coal being saved.
» Compressed air losses reduction: Compressed air losses constituted 36 % and were later reduced up to 10 % by rectifying the leakages with help of leak detection tests. Energy needs were reduced by 329,400 kWh/ year.
» Raw material saving/ waste reduction: Power cuts were causing sudden drops in compressed air pressure leading to breaks in pneumatic operation which caused the rejection of complete batches.
EID Approach: Industry Level
120914_Pathway_EID_ISOX3uncoated.indd 68 04.10.12 15:13
69
“The workshop training package in itself provided much awareness, several techni-cal inputs, and ideas on savings to help us implement measures easily on our own. EcoProfit tool and support from experts proved to be a great help for implemen-ting the measures timely and efficiently.”
Mr. Mahesh AgarwalDirector, M/s Agarwal Rubber Ltd. Mumbai, Maharashtra
120914_Pathway_EID_ISOX3uncoated.indd 69 04.10.12 15:13
70
Case4.4 Energy Savings through Co-Generation of Electricity and SteamThe main energy forms required for the process operations in bulk drug manufacturing industries are electricity
and heat. Electricity is used for motors, pumps, fans, air compressors, drives, lighting, refrigeration compressors,
process pumps and transfer pumps. Heat, in the form of pressurised steam, is used in reactors, dryers and
other machines.
M/s Zenith Energy Services (P) Ltd., Hyderabad has carried out a detailed study at M/s Andhra Organics Ltd.
for reducing energy costs of its plant and improving energy efficiency of the overall system. A co-generation
system was recommended for the plant as a viable mean.
Co-generation refers to the simultaneous production of electricity and useful thermal energy. Many companies
produce steam for process needs at a pressure higher than it is ultimately used on. This steam is usually passed
through a pressure-reducing valve which lowers its pressure. A steam turbine can take that same energy availa-
ble when pressure is reduced, and turn it into valuable electricity. Steam turbine generators make electricity
by converting the drop in the pressure of steam into mechanical power. High-pressure steam enters the turbine,
drives the generator, and finally, gets exhausted at a lower pressure for use in plant heating or the production
processes. A turbine does not consume steam, it only reduces its pressure. Steam turbine co-generation is an
established method of generating power which has been practiced for decades.
M/s Andhra Organics Ltd. is one of the leading companies in Andhra Pradesh engaged in the production of
bulk drugs. The plant is normally operated for 350 days in a year on a 24-hour basis. As a step towards
implementing various energy conservation and efficiency measures, the company has installed one coal-based
co-generation system for sequential generation of electricity and heat.
From this case of M/s Andhra Organics Ltd., the following two major results can be summed up:
» Installation of co-generation system provides electricity almost free of cost. Moreover, only 5 to 10 %
more coal is consumed for the existing steam requirement.
» The solution has a low payback period (of about 2.5 years) and quick returns. The demand of steam and
electricity matches for the bulk drug industry, and hence the scheme is technically and financially viable.
It can well be adapted for other industries according to their process needs.
EID Approach: Industry Level
120914_Pathway_EID_ISOX3uncoated.indd 70 04.10.12 15:13
71
“M/s Andhra Organics Ltd entrusted us with identifying possible solutions for energy costs reduction and improving energy efficiency. Conducting the study we identi-fied huge potential to increase energy efficiency by establishing a co-generation system. Now, energy that would have other-wise been lost is used to generate electri-city almost free of cost.”
P.R.K. Sobhan Babu, PresidentM/s Zenith Energy Services (P) LtdHyderabad, Andhra Pradesh
Figure 4.4.1 Co-generation Process
Turbine
Electricity Process heat
High pressure steam
Low pressure steam
Boiler
120914_Pathway_EID_ISOX3uncoated.indd 71 04.10.12 15:13
72
120914_Pathway_EID_ISOX3uncoated.indd 72 04.10.12 15:13
73
Conclusions
The industrial sector is a key driver of India’s impressive eco-
nomic growth and, supported by the Indian government, it
will continue to expand. Well-aware of the current environ-
mental challenges, the Indian government and the industrial
sector are giving much attention to sustainable development.
First successes in balancing economic development, environ-
mental protection and social progress are already visible.
With this focus, the government and the industry have applied
the Eco Industrial Development approach in the Indian context.
The government has developed suitable framework conditions
at the policy level enabling the effectual implementation on
industrial park and industry level (that have been presented in
the preceding chapters). GIZ has supported the process of
policy development and implementation of measures at all
levels and will continue to do so in the future.
It is seen that on the industrial park level, the challenge of Eco
Industrial Development can be tackled by developing new as
well as by transforming existing parks into Eco Industrial Parks.
The advantages are obvious.
Thorough planning of new Eco Industrial Parks not only helps
to reduce pollution, resource consumption and environmental
impacts; but also ensures appropriate location, suitable infra-
structure, synergy effects and public acceptance. All this helps
enhance efficiency to a great extent. In addition to the envi-
ronmental and social benefits, these features make new parks
more attractive for investors.
It should be noted that not only new industrial parks can capi-
talise on the principles of Eco Industrial Parks. Experiences in
India show that even old parks with serious environmental
problems can be transformed with often simple and inexpen-
sive measures. Improvements especially in the three areas of
infrastructure, management and environmental performance
of certain industries have made these transformed industrial
areas more efficient, eco-friendly and safe. Supported by ap -
pro priate information systems and training programmes, the
management of industrial sites and individual industries have
implemented promising measures.
On the individual industry level as well much can be done to
improve environmental performance. Many examples descri-
bed in this publication have illustrated the benefits of this pro-
cess. It enables companies to gain monetary benefits while at
the same time reducing their demand for raw material and
energy, and minimising associated environmental impacts
from emissions, effluents and wastes.
In times of rising input prices, measures which increase effici-
ency and reduce consumption of resources seem just sensible.
Short payback periods of investments in these measures as well
as quick returns make improvement of their environmental
performance an even more attractive option for companies.
Supported by trainings and advice from experts, many indust-
ries have successfully taken measures to improve their environ-
mental performance.
5. CONCLUSIONS / ANNEX
Conclusions and outlook
About GIZ
120914_Pathway_EID_ISOX3uncoated.indd 73 04.10.12 15:13
74
The impacts of climate change are already noticeable and a
significant increase in their occurrence poses severe threats to
future development. India, as a party to the United Nations
Framework Convention on Climate Change (UNFCCC),
aims at reducing Greenhouse Gas emissions. Especially the
country’s industrial parks have high potential for emission
reduction and can achieve great improvements by taking simple
and inexpensive measures. However, climate change consid-
erations do not only comprise emissions reduction measures.
Industrial parks are also affected by direct and indirect impacts
of climate change, such as floods or unavailability of inputs and
changed market demands. At the same time climate change
adaptation may provide business opportunities for firms,
for example in climate-proofing infrastructure or adaptation
infrastructure. Industries need to become aware of the impacts
of climate change and need to take appropriate actions,
whether deciding on preventive measures or actively seeking
business opportunities.
Some factors have proved to promote the success of measures
on every level:
» Capacity development is the key to successful Eco Indus-
trial Development as effective implementation depends
on the people involved, on government officials, indus-
try representatives, managers of industrial parks and
companies as well as employees. Their awareness, knowl-
edge and skills are crucial. For this reason education and
training programmes are necessary to ensure that people
involved are aware of the problems and are able to
implement appropriate actions.
» Stakeholder participation has proven to be a successful
tool in all stages of the process, in planning as well as
implementation. It can lead to new ideas and ensures
that all important points are taken into account. Com-
mon decisions about appropriate measures and responsi-
bilities improve acceptance, and thus, efficiency.
» Cooperation between companies may greatly enhance
their efficiency and improve environmental perfor-
mance. Possible synergies can be realised, for example,
by introducing common services or by using other com-
panies’ by-products (industrial symbiosis).
» Services should be provided through appropriate busi-
ness models. Moreover, the acceptance to pay for quality
services has to be created within the industries. Trans-
parency and reliability are key features for the relation-
ship between service providers and customers.
Of course the most important requirement for successful
implementation is the will to initiate change. Challenges for
implementation may arise from unavailability of data needed
for appropriate planning or the establishment of information
systems. Even if the process might be difficult and time con-
suming, once data is gathered and the information system
established, it be useful for all future actions. Another factor
might be lack of awareness and skills on part of the person-
nel which requires suitable training and education measures.
International cooperation promotes Eco Industrial Develop-
ment as it helps share technical expertise and experiences.
With the start of the Indo-German Environmental Partnership
Programme this year, conditions for successful cooperation in
the area are promising. The programme’s aim is to support
sustainable development, including Sustainable Industrial
Development. The Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) possesses expertise in this field. GIZ
plays an important role as an external actor to disseminate
information, motivate discussions and open new perspectives.
Apart from great achievements, there is great potential for
further engagement towards sustainable development. It can
never be emphasised sufficiently, that the threats environmen-
tal degradation and climate change pose to the community are
challenging and especially the industrial sector has a responsi-
bility to act. As has been shown in the case studies, change can
be fostered by applying simple measures without great costs. It
is also clear that change even bring economic benefits.
Industrial parks can certainly move away from being the
main cause of pollution and can transform into exemplary
production spaces.
Conclusions
120914_Pathway_EID_ISOX3uncoated.indd 74 04.10.12 15:13
75
120914_Pathway_EID_ISOX3uncoated.indd 75 04.10.12 15:13
76
About GIZ
The services delivered by the Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH draw on a
wealth of regional and technical expertise and tried and
tested management know-how. As a federal enterprise, we
support the German Government in achieving its objectives
in the field of international cooperation for sustainable
development. We are also engaged in international education
work around the globe. GIZ currently operates in more than
130 countries worldwide.
GIZ in IndiaGermany has been cooperating with India by providing
expertise through GIZ for more than 50 years. To address
India's priority of sustainable and inclusive growth, GIZ's
joint efforts with the partners in India currently focus on
the following areas:
» Energy – renewable energy and energy efficiency
» Sustainable Urban and Industrial Development
» Natural Resource Management
» Private Sector Development
» Social Protection
» Financial Systems Development
Indo-German Environmental Partnership Programme (IGEP)The work on Eco Industrial Development in India has been
implemented since 2002 under the Advisory Services in Envi-
ronmental Management (ASEM) Programme, which is a part
of the Indo German Development Cooperation and imple-
mented jointly by GIZ and the Indian Ministry of Environ-
ment & Forests. Since March 2012, the cooperation continues
under the new Indo German Environment Partnership
(IGEP) Programme. The objective of the new programme is
to establish innovative solutions for effective environmental
management, with a focus on urban habitat and industrial
development, including policy options, which lead to improve-
ments in inclusive growth, green economy
and climate change.
Core Competence: Capacity Development
The core competence of GIZ is capacity development. This
entails supporting people in acquiring technical expertise,
managerial competence and performance capability. And it
means supporting organisations, public institutions and pri-
vate companies in making their organisational, management
and production structures more efficient and effective. A
country’s political and social frameworks are crucial in imple-
menting effective reforms. GIZ advises governments on main-
streaming their goals and change processes in laws and strate-
gies, and implementing these country-wide (scaling-up) as
otherwise, changes remain isolated occurrences, and fail to
generate results beyond the short term.
Guiding Principle: Sustainable DevelopmentGIZ declares sustainable development as a corporate guiding
principle. In this case, sustainable development means:
» supporting economic growth for more prosperity in
partner countries
» ensuring equal opportunities for rich and poor, North
and South, women and men
» utilising natural resources for the benefits of present and
future generations.
There are no ready-made sustainable solutions to complex
developmental issues. GIZ understands sustainable develop-
ment as a constant process of negotiation and learning. In its
work, GIZ uses a combination of advisory services, such as
policy, technical and organisational advice. GIZ works at
government level as well as with associations, industry, local
populations and international donors. GIZ observes the prin-
ciples of good governance and operates according to interna-
tionally recognised fundamental values, such as respect for
human rights.
About GIZ
120914_Pathway_EID_ISOX3uncoated.indd 76 04.10.12 15:13
77
120914_Pathway_EID_ISOX3uncoated.indd 77 04.10.12 15:13
78
NOTES
120914_Pathway_EID_ISOX3uncoated.indd 78 04.10.12 15:13
120914_Pathway_EID_ISOX3uncoated.indd 79 04.10.12 15:13
Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ) GmbH
Registered officesBonn and Eschborn, Germany
Friedrich-Ebert-Allee 4053113 Bonn, GermanyT +49 228 44 60-0F +49 228 44 60-17 66
Dag-Hammarskjöld-Weg 1-565760 Eschborn, GermanyT +49 61 96 79-0F +49 61 96 79-11 15
E info@giz.deI www.giz.de
120914_Pathway_EID_ISOX3uncoated.indd 80 04.10.12 15:13