PRE-FEASIBILITY REPORT Main Out Still Liquor REPORT Main Out Still Liquor Shop (Sagada Branch) Name: M/s LAXMI NARAYAN MAN MOHAN LAL Address: At- Sagada,P.O.: Sagada, P.S.: Bhawanipatna

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Text of PRE-FEASIBILITY REPORT Main Out Still Liquor REPORT Main Out Still Liquor Shop (Sagada Branch) Name:...


    Main Out Still Liquor Shop (Sagada Branch)

    Name: M/s LAXMI NARAYAN MAN MOHAN LAL Address: At- Sagada,P.O.: Sagada, P.S.: Bhawanipatna Dist: Kalahandi, Pin: 766002

  • SL NO


    1 Executive Summary : 1 2 Introduction of the project/Background

    Information : 2-4

    3 Project Description : 5-9 4 Planning Brief : 10-11 5 Infrastructure : 12 6 Rehabilitation and Resettlement (R & R) Plan : 12 7 Project Schedule & Cost Estimates : 12 8 Conclusion : 13 9 Design of Country liquor Bhatti : 14 10 Manufacturing Process Flow Chart : 15

  • EXECUTIVE SUMMARY Mahua flower based country liquor manufacturing unit is a small scale industry and the said unit is always remained under the control of the State Excise Department in terms of capacity creation, distribution and taxation. The industry possesses a dilemma to the State, borne by the temptation of large revenues, on the one hand, and the other hand to supply quality liquor to the people of the locality. The State Government has started a new initiative to check and control of the illegal country liquor production business and accordingly throughout Kalahandi district out still country liquor manufacturing unit was started through Mahua Flower under the full control of the Excise department. In this context the unit has also obtained license vide No: 08/2017-2018 in the name of Vender/Licensee M/s Laxmi Narayan Man Mohan Lal from the Excise department and the said unit is operating at Sagada under Bhawanipatna Tahasil. The units license is valid till 31st March 2018 and thereafter it is again renewed. Since the year 2005 to till now the Excise department, Odisha have renewed the said license each year in the month of March in the same place.


  • INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION A. Identification of project and project proponent The license holder has been producing approx 540 liters per day (Mahua Flower based Country Liquor) at village: Sagada under Bhawanipatna Tahasil of Kalahandi District. i. Nature of license License issued by the State Excise Department as per their endorsement O.S-1 (Main out Still Liquor Shop). This license is valid for the manufacture and sale by retail of country sprit in a shop on the out still system, which is narrated at the Sl. No: 1 of the license and the said license is in force for the unit till March, 2018.

    ii No. of license as in original Renewal license No: 08/2017-2018 as per the endorsement made by Superintendent of Excise, Kalahandi. iii. Locality of vend Sagada (Main O.S. Shop) of Bhawanipatna Tahasil of Kalahandi District in the State of Odisha. iv. Name of the EP Holder M/s Laxmi Narayan Man Mohan Lal

    v. Monthly consideration of money fixed for 2017-18 Monthly consideration of money fixed by the Excise Department, Odisha in favour of the unit is Rs. 67,441/- for the year 2017-18.


  • B. Brief description of nature of the project The units license holder has been producing Mahua flower based country liquor through normal distillation process. Mahua flower and water has been boiling with 110 C in copper pot for the 4 to 6 hours. Then steam process has been started. Thereafter, Mahua liquor has been generating. Product of Mahua liquor with water has been mixing as per the guideline of the Excise Department. Then the concerned charge Excise Officer has been collecting the product sample for chemical examination. If it is found fit for human consumption thereafter the said Mahua liquor has been distributed to the authorized retail counters i.e. branch shops of the locality in the E.P. area for selling. The said country liquor has been selling in an earmarked poly pack. This pocket has been preparing in the premises of this unit prior to distribution to the retail counters of the locality in the E.P. area. It is again to mention that the poly pack is not a polluted material. C. Need for the project and its importance to the country and or region India is one of the major alcohol producing countries. Production of alcohol has gone up from a meager 100 million liters in the fifties to the current level of more than 600 million liters. The Russia, USA, Brazil, India, the UK, Japan and West Germany, are the leading alcohol producing countries. India, has been exporting alcohol in substantial quantities. According to a survey conducted by a UK-based trade magazine in liquor, three Indian brands figured in the "TOP 25 Fastest Growing Brands in the world in 1994". While the survey is for both local as well as foreign sales, it takes into account only those brands which "export or produce more than 10 percent of their sales volumes overseas"- in other words, Indian-made Foreign liquor (IMFL) could actually be well on its way to becoming a preferred foreign liquor. Indian Consumption of whisky has grown at an average 14% annually for the past eight years, climbing to 30 million cases (of 12 bottles of 750 ml each) per annum. That makes India the hottest whisky market in the world. D. Demand-Supply Gap Change in the situation with a sharp increase in demand for alcohol following the implementation of expansion and new schemes by SM Dyechem and Chemplast, which were increasing the output of ethylene oxide, specialty chemicals, PVC resins and Mono ethylene glycol in a big way.


  • The output of alcohol-based chemicals would increase at a faster rate in future with the independent units taking up new projects and sugar mills having their own distilleries establishing downstream projects. The calculations in this regard have been upset largely by the sharp increase in the cost of molasses and alcohol. The present availability of alcohol cannot meet the entire demand. Alcohol production is directly linked with sugar output and availability of molasses. Table 2 shows the trend in alcohol production and consumption will be observed that it is upward. To meet the needs of the growing population, sugar production will continue to maintain this trend and as a result, alcohol availability will improve. However, a disturbing factor is the diversion of a large proportion of alcohol for potable use. E. Employment Generation (Direct and Indirect) due to the project Only 15 numbers of people is getting direct and indirect employment in this unit. F. Domestic / Export Market Mahua flower based country liquor has been sale within the local market as per the terms and conditions fixed by the Excise Department, Govt. of Odisha. This country liquor is not producing for export marketing.


  • PROJECT DESCRIPTION (i) Type of project manufacturing industry Mahua Flower based country liquor manufacturing unit with 540 Liters daily production capacity. (ii) Location of the Unit The Country liquor manufacturing units location is at village/Mouza: Sagada under Bhawanipatna Tahasil, District: Kalahandi, Odisha. The unit area is very alone and there is no important place situated like inhabitants, school, college, temple etc. (iii) Details of alternate sites: No alternative site is required for the unit. (iv) Project description with process details a. Utility of Mahua flower: Mahua flowers are also considered good for cooling, and are used as a tonic and demulcent. However an estimated 90 per cent of the production goes into brewing beverages. Seventy five per cent of the tribal households in our country are engaged in Mahua flower collection meaning a population of around 7.5 million is into this livelihood activity. Various studies indicate that a household gets between Rs 2500-5000 in a normal Mahua year. An estimate says that 28600 person years of employment are generated. b. Mahua flower collection every year (FGLG India, 2008) The income for the primary collectors/processors in this transaction is very low. This is often attributed to an unorganized market and little access of the primary collectors to the market. Another feature of this sub sector is that the producers and the consumers are essentially the same group of people, the tribal. In the National Context Chhattisgarh, Madhya Pradesh and Orissa account for nearly 80 % of Mahua trees in India. (Design of Country Liquor Bhatti & Process Flow Chat attached here with) c. The Processing Sub System: Processing of Mahua occurs at three levels: Drying: collectors dry the flowers before they sell Stocking: traders stock in cold storages Brewing: brewing of liquors household/bhatti/large brewer level.


  • Drying is done immediately after collection. It is rarely observed that the flower is sold without drying. Hence this is generally put as part of production sub-system. Stocking, technically, is not a processing activity. The most important processing done with Mahua flower is brewing. However commercially it is undertaken by Bhattis or large scale brewers. Processing of Mahua flower into brew large scale brewing by licensed bhatti is permitted in Kalahandi District of Odisha. d. Mahua flower processing for brewing: Mahua flowers are putting in drums filled with water five days before it goes into brewing. After the bubbles are seen on the top of the drum, that drum of flowers is feet for further processing in the furnace and transferred to the brewing copper pot on the bottom. The brewing chamber has a hearth/furnace with one pot. The bucket placed near the furnace is connected to the brew which is situated in the middle of the chamber pot with a pipe. The process often takes five to six hours. (A schematic diagram / process flow chart of country liquor manufacturing is here by attached). e. Product: The units license holders have been producing Mahua flower based country liquor through n