Agricultural Engineering RICE MILL Introduction: Rice is the staple food for 65% of the population in India.

It is the largest consumed calorie source among the food grains. With a per capita availability of 73.8 kg it meets 31% of the total calorie requirement of the population.India is the second largest producer of rice in the world next to China. The all India area, production, and yield of rice in the year 2001-02 was 44.62 million hectares, 93.08 million tonnes and 2086 kg/ ha respectively. In India paddy occupies the first place both in area and production. The crop occupies about 37 % of the total cropped area and 44% (2001-02 position ) of total production of food grains in India. West Bengal is the leading producer of paddy in the country. It accounts for 16.39% of the total production, and the other leading states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the remaining states account for 33.45% of the production. India is also one of the leading exporters of rice in the world market. India's export of rice stood at 23.89 lakh MT in 1997-98. The corresponding value of foreign exchange earned was to the tune of Rs. 3371.00 crore in 1997-98. Indian Basmati Rice has been a favorite among international rice buyers. Following liberalization of international trade after World Trade Agreement, Indian rice will become highly competitive and has been identified as one of the major commodities for export. This provides us with ample opportunity for development of rice based value-added products for earning more foreign exchange. Apart from rice milling, processing of rice bran for oil extraction is also an important agro processing activity for value addition, income and employment generation. Many of the rice processing units are of the traditional huller type and are inefficient. Modern rice mills are having high capacity and are capital intensive, although efficient. Small modern rice mills have been developed and are available in the market but the lack of information is a bottleneck in its adoption by the prospective entrepreneur. The present model will go a long way in bridging the information gap. Description of Rice Milling Operation: Paddy in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Rice milling is the process which helps in removal of hulls and barns from paddy grains to produce polished rice. Rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. The basic rice milling processes consist of: Process Definition 1. Pre Cleaning : Removing all impurities and unfilled grains from paddy 2. De-stoning : Separating small stones from paddy 3. Parboiling (Optional) : Helps in improving the nutritional quality by gelatinization of starch inside the rice grain. It improves the milling recovery percent during deshelling and polishing / whitening operation 4. Husking : Removing husk from paddy 5. Husk Aspiration : Separating the husk from brown rice/ unhusked paddy 6. Paddy Separation : Separating the unhusked paddy from brown rice 7. Whitening : Removing all or part of the bran layer and germ from brown rice 8. Polishing : Improving the appearance of milled rice by removing the remaining bran particles and by polishing the exterior of the milled kernel 9. Length Grading : Separating small and large brokens from head rice 10. Blending : Mixing head rice with predetermined amount of brokens, as required by the customer

11. Weighing and bagging : Preparing the milled rice for transport to the customer The flow diagram of the various unit operations are as follows: Status of Rice Milling Units in India: Rice milling is the oldest and the largest agro processing industry of the country. At present it has a turn over of more than 25,500/- crore per annum. It processes about 85 million tonnes of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single hullers of which over 82,000 are registered in the country. Apart from it there are also a large number of unregistered single hulling units in the country. A good number (60 %) of these are also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of about 250-300 kg/hr capacities are employed for custom milling of paddy. Apart from it double hulling units number over 2,600 units, underrun disc shellers cum cone polishers numbering 5,000 units and rubber roll shellers cum friction polishers numbering over 10,000 units are also present in the country. Further over the years there has been a steady growth of improved rice mills in the country. Most of these have capacities ranging from 2 tonnes /hr to 10 tonnes/ hr. Need for improved rice mills: The recovery of whole grains in a traditional rice mill using steel hullers for dehusking is around 52-54%. There is excessive loss in the form of coarse and fine brokens. Further loss of large portion of endosperm layers during the dehusking operation further accentuates the problem. Against it, the recovery percent of whole grains in modern rice mills using rubber roll shellers for dehusking operation is around 62-64%. The whole grain recovery percent further increases to 66-68% in case of milling of parboiled paddy. Thus it can be seen that there is an overall improvement of recovery of whole grains by about 10-14% if one uses rubber roll shellers for rice milling operations. The conversion ratio ( i.e. recovery % of various final product and byproduct for every 100 kg feed of raw paddy) for these improved rice mills are can be as follows: 1. Percent of milled rice : 62-68% 2. Percent of rice bran : 4-5% 3. Percent of rice husk : 25% 4. Percent of germ wastages : 2%-8% It has been observed that dehusking using rubber roll shellers reduces the risk of breaking the grain because husk is pulled off almost at once and pressure is applied by means of resilient surfaces across the width of the grain, where kernels, generally are much more uniform than they are by length. Moreover, the process does not remove the internal epidermis of the husk. Thus the deshelled grains with their silver skin envelope are protected against scratches and keep longer and better while the silver skin and the germ increases the quantity of bran which is produced while whitening. The improved rice mills have a better husk and rice bran aspiration system. The same prevents mixing of fine brokens with rice bran. Therefore the quality of rice bran obtained is better. It has also been observed that the location of rice mills are confined to a few selected production centres. Their development as a village level agro processing unit is yet to take a proper shape. In the absence of village level rice milling unit, the farmers have to travel great distances for milling the rice. This leads to increased transportation and handling losses. Thus there is a need to develop improved rice mills as a village level agro processing unit for bringing about technical upgradation and development of the sector. Value addition and generation of gainful and sustainable employment opportunities are the other possible benefits arising out of this agro processing industry. The Central Govt. is also providing a big boost towards the development of this industry. It has since repealed w.e.f. May 27, 1998 the Rice Milling Industry (Regulation) Act, 1958 and Rice Milling Industry (Regulation and licensing) Rules , 1959. Further, rice milling sector which was earlier reserved for the small scale sector, have now been dereserved. As such, no license/ permission is now required for setting up a rice mill. Investment components of an improved rice mill: The various investment components are as follows:

Land, layout plan and site development requirement: The land requirement for establishing an improved rice milling unit will depend upon 1. Whether the unit will be using a parboiling unit for pre-treatment of paddy before commencement of milling operation or it will be directly milling raw paddy. 2. Whether a single pass or a multipass milling unit is to be installed. Generally 2.00 to 2.50 acre of land is required for establishing an improved rice milling unit having an installed processing capacity of 2 MT/ hr; operating for single shift / day of 8 hr duration; 300 days per annum; i.e. 4800 MT /annum. The land should be with proper elevation. Low lying areas should be avoided. Else proper land filling, compaction and consolidation should be done. Drainage and linkages with road and other communication should also be ensured. The layout of the rice milling plant should be done in a manner that helps in smooth operation of various unit operations in tandem to bring about optimal capacity utilization and economizing power consumption. The tentative cost of land and land development charges for the model project has been considered at Rs. 5.00 Lakh ( Rs. 3.75 Lakh being the cost of the land @ Rs. 1.50 Lakh per acre for 2.50 acre and the remaining Rs. 1.25 Lakh being the cost for site development such as construction of boundary wall, internal roads and drainage system etc.) Civil construction: The various construction requirement of an improved rice milling unit are as follows: 1. Raw paddy godown 2. Cleaning unit 3. Drier and necessary supporting structures such as, boiler /blower system etc. 4. Milling section 5. Finished product stores 6. Machine rooms 7. Auxiliary structures such as office, watch and ward etc. The size and civil cost of these structures depend on the production capacity of the project . The tentative civil structures and estimated cost are as follows: Civil Structures (Amt. Rs.) Total Cost 840000

S.No.

Item 1 Raw paddy godown- RCC framed superstructure with 10'' thick brick walls, IPS flooring with damp proof treatment with 1.62 kg DPC /sq.m of floor area and base of the side walls, roofing consisting of ACC sheets affixed with J hooks, bolts and other accessories to steel truss made of MS angle of desired section 2 Cleaning Shed - Similar to the raw paddy godown 3 Milling shed -RCC framed superstructure with brick walls , IPS flooring and roofing consisting of ACC sheets affixed with J Hooks and nuts to

Size / Specifications 80' x 35'

Unit Cost Rs. 300 / sq. ft

25' x 32' 80' x 35'

Rs. 300 / sq. ft Rs. 300 / sq. ft

240000 840000

steel trusses made of MS angle of desired section and strength bearing capacity. 4 Finished product or Milled rice storage shed 5 Machine shed - with masonry structure with ACC sheet roofing on lean truss 6 Auxiliary structures a Office unit b Labor quarters c Machine Room for auxiliary machines like blowers/ generator set etc. d Bore well and water connections e Sanitary and plumbing charges f Miscellaneous charges 7 Total for Civil Construction Cost Technology: It is better to use rubber roll shellers for dehusking of paddy in the unit for better performance. Plant and machinery and electricals: The details of the nature and type of plant and machinery, their capacity, power consumption, level of automation varies upon the market needs, nature and type of the end products and the investment capacity of the entrepreneur. Whenever paddy is required to be parboiled prior to deshelling, a parboiling unit with steam boilers has to be installed by the milling unit. The same will increase the P&M cost. The details of plant and machinery for the rice milling unit are as follows: 1. Paddy cleaner 2. Rubber Roll Paddy Shellers 3. Paddy Separators 4. Blowers , Husk and Barn Aspirators 5. Paddy Polishers 6. Rice grader/ aspirator 7. Bucket Elevators Plant & Machinery (Amt. Rs.) S.No. 1 Item and Description Raw paddy cleaner cum aspirator consisting of large aspiration of desired suction width fitted with double fans with necessary damper controls. The precleaner is also provided with a magnetic separator for removing iron particles ( for avoiding damage to other machines in the rice mill) feed hopper and other accessories viz. bearngs, block sockets, shafting pulley, holding bolt etc. One rubber roll paddy sheller Total Cost 650,000 10' x 15' 30 ' x 15' 40' x 15' L.S. L.S. L.S. Rs. 300 / sq. ft Rs. 300 / sq.ft Rs. 300 / sq.ft 45000 135000 180000 100000 50000 50000 3095000 30' x 35' Rs. 300 /sq.ft 315000

40' x25'

Rs. 300 /sq. ft

300000

98,000

3 4

Paddy Separator for separating undeshelled paddy from deshelled paddy. Blowers, husk and barn aspirators for aspiration of light particles, separating husks from dehusked kernels and for separating bran from milled rice. 3 nos. of cone type paddy polishers of suitable capacity for polishing and whitening rice grains to the desired degree Rice grader/ aspirator for purification and grading of polished rice grains and for separation of the fine brokens, coarse brokens from whole rice. Bucket elevators for bulk transport and conveyance of raw paddy, milled rice from 1 unit operation to another in a rice milling unit Electricals (AC-3 phase induction motors for each of the machine, DOL starters, control panel, internal wiring and lighting) Subtotal Insurance , freight, erection and commissioning charges @20% of the subtotal Total

45,000 35,000

5 6

600,000 50,000

90,000

250,000

9 10 11

1,818,000 363,600 2,181,600

The specifications and capacity of the various equipment has to be judged properly for deciding upon their cost and appropriateness for the rice milling unit. Electrical and other items: The tentative power requirement for various equipment for the rice milling unit is as follows: Electricals S.No. 1 2 3 4 Equipment Paddy cleaner Rubber Roll Paddy Shellers Paddy Separators Blowers , Husk and Barn Aspirators

5 6 7 8 9

Paddy Polishers ( 3 nos. in series each with 15 Hp motor) Rice grader/ aspirator Bucket Elevators Internals Subtotal

A provision of Rs. 2.50 lakh has been considered towards electricals and internal lighting purpose. Since each of the machine used for undertaking various rice processing operations is provided with it own independent power source (AC-3 phase induction motor), the cost of electrical motors have been included as part of the plant and machinery cost. Miscellaneous fixed assets: A provision of Rs. 2.00 Lakh under miscellaneous fixed assets has been considered for meeting the expenses for office furniture, fixtures, steel ladders and platforms for cleaning of machines, fire fighting arrangements etc. Utilities: Power:

The total power requirement for the model project will to the tune of 75 KW . The essential power requirement of the unit is about 90 HP and accordingly suitable standby generator provision is made. Water: Water is required for parboiling and domestic comsumption purpose. Suitable arrangements for continuos water supply of desired quality and quantity should be ensured while appraising the proposal. Standby diesel engines, generator sets and other utilities: Suitable standby D.G. set is required to be installed in the unit. Thus for the project, a DG Set of 100 KVA capacity with a cost of Rs. 3.75 lakh has been considered. However, it is an optional item and the need is to be assessed depending upon the power supply position in the area. Contingencies: A 5% contingency provision may be made for the unforseen expenses. Organizational setup: The unit may require a plant supervisor, one accountant cum store keeper, three machine operators, one peon and two security staff. Apart from this, three skilled workers and twelve unskilled workers may be required for managing the day to day operation of the unit. Depending upon the size of the unit, the manpower requirement may be modified. Insurance: The rice milling units should go in for adequate insurance to cover the fixed assets and stocks. Eligibility of borrowers: The borrowers can be proprietary and partnership firms, cooperatives, joint stock companies, corporations, APMC board, growers associations, NGOs etc. Repayment: The repayment schedule has been calculated considering the tenure of the term loan to be 9 years inclusive of a grace period of 2 years. However, banks are free to decide upon the repayment schedule depending upon the net cash flow assessed. Interest rate for ultimate borrowers: Banks are free to decide the rate of interest within the overall RBI Guidelines. However, for working out the financial viability and bankability of the model project we have assumed the rate of interest as 12% p.a. Interest rate for refinance from NABARD: As per the circulars of NABARD issued from time to time. Security: Banks may take a decision as per RBI Guidelines Results of financial analysis are as under: The financial analysis of the investment on an improved rice mill having an installed capacity of 4800 MT/ annum has been attempted and is placed from Annexures I to VII. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. For this project,

the financial indicators of the investment are as under: Net Present Value @ 15% DF (NPW) = Rs. 34.14 lakh Internal Rate of Return (IRR) = 28.22% Benefit Cost Ratio (BCR) = 1.03:1 Average Debt Service coverage Ratio (DSCR) = 1.64:1 Annexures Agricultural Engineering RICE MILL Introduction: Rice is the staple food for 65% of the population in India. It is the largest consumed calorie source among the food grains. With a per capita availability of 73.8 kg it meets 31% of the total calorie requirement of the population.India is the second largest producer of rice in the world next to China. The all India area, production, and yield of rice in the year 2001-02 was 44.62 million hectares, 93.08 million tonnes and 2086 kg/ ha respectively. In India paddy occupies the first place both in area and production. The crop occupies about 37 % of the total cropped area and 44% (2001-02 position ) of total production of food grains in India. West Bengal is the leading producer of paddy in the country. It accounts for 16.39% of the total production, and the other leading states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the remaining states account for 33.45% of the production. India is also one of the leading exporters of rice in the world market. India's export of rice stood at 23.89 lakh MT in 1997-98. The corresponding value of foreign exchange earned was to the tune of Rs. 3371.00 crore in 1997-98. Indian Basmati Rice has been a favorite among international rice buyers. Following liberalization of international trade after World Trade Agreement, Indian rice will become highly competitive and has been identified as one of the major commodities for export. This provides us with ample opportunity for development of rice based value-added products for earning more foreign exchange. Apart from rice milling, processing of rice bran for oil extraction is also an important agro processing activity for value addition, income and employment generation. Many of the rice processing units are of the traditional huller type and are inefficient. Modern rice mills are having high capacity and are capital intensive, although efficient. Small modern rice mills have been developed and are available in the market but the lack of information is a bottleneck in its adoption by the prospective entrepreneur. The present model will go a long way in bridging the information gap. Description of Rice Milling Operation: Paddy in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Rice milling is the process which helps in removal of hulls and barns from paddy grains to produce polished rice. Rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. The basic rice milling processes consist of: Process Definition 1. Pre Cleaning : Removing all impurities and unfilled grains from paddy 2. De-stoning : Separating small stones from paddy 3. Parboiling (Optional) : Helps in improving the nutritional quality by gelatinization of starch inside the rice grain. It improves the milling recovery percent during deshelling and polishing / whitening operation 4. Husking : Removing husk from paddy 5. Husk Aspiration : Separating the husk from brown rice/ unhusked paddy

6. Paddy Separation : Separating the unhusked paddy from brown rice 7. Whitening : Removing all or part of the bran layer and germ from brown rice 8. Polishing : Improving the appearance of milled rice by removing the remaining bran particles and by polishing the exterior of the milled kernel 9. Length Grading : Separating small and large brokens from head rice 10. Blending : Mixing head rice with predetermined amount of brokens, as required by the customer 11. Weighing and bagging : Preparing the milled rice for transport to the customer The flow diagram of the various unit operations are as follows: Status of Rice Milling Units in India: Rice milling is the oldest and the largest agro processing industry of the country. At present it has a turn over of more than 25,500/- crore per annum. It processes about 85 million tonnes of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single hullers of which over 82,000 are registered in the country. Apart from it there are also a large number of unregistered single hulling units in the country. A good number (60 %) of these are also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of about 250-300 kg/hr capacities are employed for custom milling of paddy. Apart from it double hulling units number over 2,600 units, underrun disc shellers cum cone polishers numbering 5,000 units and rubber roll shellers cum friction polishers numbering over 10,000 units are also present in the country. Further over the years there has been a steady growth of improved rice mills in the country. Most of these have capacities ranging from 2 tonnes /hr to 10 tonnes/ hr. Need for improved rice mills: The recovery of whole grains in a traditional rice mill using steel hullers for dehusking is around 52-54%. There is excessive loss in the form of coarse and fine brokens. Further loss of large portion of endosperm layers during the dehusking operation further accentuates the problem. Against it, the recovery percent of whole grains in modern rice mills using rubber roll shellers for dehusking operation is around 62-64%. The whole grain recovery percent further increases to 66-68% in case of milling of parboiled paddy. Thus it can be seen that there is an overall improvement of recovery of whole grains by about 10-14% if one uses rubber roll shellers for rice milling operations. The conversion ratio ( i.e. recovery % of various final product and byproduct for every 100 kg feed of raw paddy) for these improved rice mills are can be as follows: 1. Percent of milled rice : 62-68% 2. Percent of rice bran : 4-5% 3. Percent of rice husk : 25% 4. Percent of germ wastages : 2%-8% It has been observed that dehusking using rubber roll shellers reduces the risk of breaking the grain because husk is pulled off almost at once and pressure is applied by means of resilient surfaces across the width of the grain, where kernels, generally are much more uniform than they are by length. Moreover, the process does not remove the internal epidermis of the husk. Thus the deshelled grains with their silver skin envelope are protected against scratches and keep longer and better while the silver skin and the germ increases the quantity of bran which is produced while whitening. The improved rice mills have a better husk and rice bran aspiration system. The same prevents mixing of fine brokens with rice bran. Therefore the quality of rice bran obtained is better. It has also been observed that the location of rice mills are confined to a few selected production centres. Their development as a village level agro processing unit is yet to take a proper shape. In the absence of village level rice milling unit, the farmers have to travel great distances for milling the rice. This leads to increased transportation and handling losses. Thus there is a need to develop improved

rice mills as a village level agro processing unit for bringing about technical upgradation and development of the sector. Value addition and generation of gainful and sustainable employment opportunities are the other possible benefits arising out of this agro processing industry. The Central Govt. is also providing a big boost towards the development of this industry. It has since repealed w.e.f. May 27, 1998 the Rice Milling Industry (Regulation) Act, 1958 and Rice Milling Industry (Regulation and licensing) Rules , 1959. Further, rice milling sector which was earlier reserved for the small scale sector, have now been dereserved. As such, no license/ permission is now required for setting up a rice mill. Investment components of an improved rice mill: The various investment components are as follows: Land, layout plan and site development requirement: The land requirement for establishing an improved rice milling unit will depend upon 1. Whether the unit will be using a parboiling unit for pre-treatment of paddy before commencement of milling operation or it will be directly milling raw paddy. 2. Whether a single pass or a multipass milling unit is to be installed. Generally 2.00 to 2.50 acre of land is required for establishing an improved rice milling unit having an installed processing capacity of 2 MT/ hr; operating for single shift / day of 8 hr duration; 300 days per annum; i.e. 4800 MT /annum. The land should be with proper elevation. Low lying areas should be avoided. Else proper land filling, compaction and consolidation should be done. Drainage and linkages with road and other communication should also be ensured. The layout of the rice milling plant should be done in a manner that helps in smooth operation of various unit operations in tandem to bring about optimal capacity utilization and economizing power consumption. The tentative cost of land and land development charges for the model project has been considered at Rs. 5.00 Lakh ( Rs. 3.75 Lakh being the cost of the land @ Rs. 1.50 Lakh per acre for 2.50 acre and the remaining Rs. 1.25 Lakh being the cost for site development such as construction of boundary wall, internal roads and drainage system etc.) Civil construction: The various construction requirement of an improved rice milling unit are as follows: 1. Raw paddy godown 2. Cleaning unit 3. Drier and necessary supporting structures such as, boiler /blower system etc. 4. Milling section 5. Finished product stores 6. Machine rooms 7. Auxiliary structures such as office, watch and ward etc. The size and civil cost of these structures depend on the production capacity of the project . The tentative civil structures and estimated cost are as follows: Civil Structures (Amt. Rs.) S.No. Item Size / Specifications Unit Cost Total Cost

1 Raw paddy godown- RCC framed superstructure with 10'' thick brick walls, IPS flooring with damp proof treatment with 1.62 kg DPC /sq.m of floor area and base of the side walls, roofing consisting of ACC sheets affixed with J hooks, bolts and other accessories to steel truss made of MS angle of desired section 2 Cleaning Shed - Similar to the raw paddy godown 3 Milling shed -RCC framed superstructure with brick walls , IPS flooring and roofing consisting of ACC sheets affixed with J Hooks and nuts to steel trusses made of MS angle of desired section and strength bearing capacity. 4 Finished product or Milled rice storage shed 5 Machine shed - with masonry structure with ACC sheet roofing on lean truss 6 Auxiliary structures a Office unit b Labor quarters c Machine Room for auxiliary machines like blowers/ generator set etc. d Bore well and water connections e Sanitary and plumbing charges f Miscellaneous charges 7 Total for Civil Construction Cost Technology:

80' x 35'

Rs. 300 / sq. ft

840000

25' x 32' 80' x 35'

Rs. 300 / sq. ft Rs. 300 / sq. ft

240000 840000

30' x 35'

Rs. 300 /sq.ft

315000

40' x25'

Rs. 300 /sq. ft

300000

10' x 15' 30 ' x 15' 40' x 15' L.S. L.S. L.S.

Rs. 300 / sq. ft Rs. 300 / sq.ft Rs. 300 / sq.ft

45000 135000 180000 100000 50000 50000 3095000

It is better to use rubber roll shellers for dehusking of paddy in the unit for better performance. Plant and machinery and electricals: The details of the nature and type of plant and machinery, their capacity, power consumption, level of automation varies upon the market needs, nature and type of the end products and the investment capacity of the entrepreneur. Whenever paddy is required to be parboiled prior to deshelling, a parboiling unit with steam boilers has to be installed by the milling unit. The same will increase the P&M cost. The details of plant and machinery for the rice milling unit are as follows: 1. Paddy cleaner 2. Rubber Roll Paddy Shellers 3. Paddy Separators 4. Blowers , Husk and Barn Aspirators 5. Paddy Polishers 6. Rice grader/ aspirator

7. Bucket Elevators Plant & Machinery (Amt. Rs.) S.No. 1 Item and Description Raw paddy cleaner cum aspirator consisting of large aspiration of desired suction width fitted with double fans with necessary damper controls. The precleaner is also provided with a magnetic separator for removing iron particles ( for avoiding damage to other machines in the rice mill) feed hopper and other accessories viz. bearngs, block sockets, shafting pulley, holding bolt etc. One rubber roll paddy sheller Paddy Separator for separating undeshelled paddy from deshelled paddy. Blowers, husk and barn aspirators for aspiration of light particles, separating husks from dehusked kernels and for separating bran from milled rice. 3 nos. of cone type paddy polishers of suitable capacity for polishing and whitening rice grains to the desired degree Rice grader/ aspirator for purification and grading of polished rice grains and for separation of the fine brokens, coarse brokens from whole rice. Bucket elevators for bulk transport and conveyance of raw paddy, milled rice from 1 unit operation to another in a rice milling unit Electricals (AC-3 phase induction motors for each of the machine, DOL starters, control panel, internal wiring and lighting) Subtotal Insurance , freight, erection and commissioning charges @20% of the subtotal Total Total Cost 650,000

2 3 4

98,000 45,000 35,000

5 6

600,000 50,000

90,000

250,000

9 10 11

1,818,000 363,600 2,181,600

The specifications and capacity of the various equipment has to be judged properly for deciding upon their cost and appropriateness for the rice milling unit. Electrical and other items: The tentative power requirement for various equipment for the rice milling unit is as follows: Electricals S.No. 1 2 3 4 Equipment Paddy cleaner Rubber Roll Paddy Shellers Paddy Separators Blowers , Husk and Barn Aspirators

5 6 7 8 9

Paddy Polishers ( 3 nos. in series each with 15 Hp motor) Rice grader/ aspirator Bucket Elevators Internals Subtotal

A provision of Rs. 2.50 lakh has been considered towards electricals and internal lighting purpose. Since each of the machine used for undertaking various rice processing operations is provided with it own independent power source (AC-3 phase induction motor), the cost of electrical motors have been included as part of the plant and machinery cost. Miscellaneous fixed assets: A provision of Rs. 2.00 Lakh under miscellaneous fixed assets has been considered for meeting the expenses for office furniture, fixtures, steel ladders and platforms for cleaning of machines, fire fighting arrangements etc. Utilities: Power: The total power requirement for the model project will to the tune of 75 KW . The essential power requirement of the unit is about 90 HP and accordingly suitable standby generator provision is made. Water: Water is required for parboiling and domestic comsumption purpose. Suitable arrangements for continuos water supply of desired quality and quantity should be ensured while appraising the proposal. Standby diesel engines, generator sets and other utilities: Suitable standby D.G. set is required to be installed in the unit. Thus for the project, a DG Set of 100 KVA capacity with a cost of Rs. 3.75 lakh has been considered. However, it is an optional item and the need is to be assessed depending upon the power supply position in the area. Contingencies: A 5% contingency provision may be made for the unforseen expenses. Organizational setup: The unit may require a plant supervisor, one accountant cum store keeper, three machine operators, one peon and two security staff. Apart from this, three skilled workers and twelve unskilled workers may be required for managing the day to day operation of the unit. Depending upon the size of the unit, the manpower requirement may be modified. Insurance: The rice milling units should go in for adequate insurance to cover the fixed assets and stocks. Eligibility of borrowers: The borrowers can be proprietary and partnership firms, cooperatives, joint stock companies, corporations, APMC board, growers associations, NGOs etc. Repayment: The repayment schedule has been calculated considering the tenure of the term loan to be 9 years inclusive of a grace period of 2 years. However, banks are free to decide upon the repayment schedule depending upon the net cash flow assessed. Interest rate for ultimate borrowers: Banks are free to decide the rate of interest within the overall RBI Guidelines. However, for working out the financial viability and bankability of the model project we have assumed the rate of interest as 12%

p.a. Interest rate for refinance from NABARD: As per the circulars of NABARD issued from time to time. Security: Banks may take a decision as per RBI Guidelines Results of financial analysis are as under: The financial analysis of the investment on an improved rice mill having an installed capacity of 4800 MT/ annum has been attempted and is placed from Annexures I to VII. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. For this project, the financial indicators of the investment are as under: Net Present Value @ 15% DF (NPW) = Rs. 34.14 lakh Internal Rate of Return (IRR) = 28.22% Benefit Cost Ratio (BCR) = 1.03:1 Average Debt Service coverage Ratio (DSCR) = 1.64:1 Annexures