Date:25/08/2004 URL: http://www.thehindubusinessline.com/2004/08/25/stories/2004082501470300.htm

Back Technology council to help Grasim cut fuel costs by 25%

Mamuni Das
Anil Sasi

New Delhi , Aug. 24

GRASIM is in talks with a Government body, Technology Information, Forecasting and Assessment Council (TIFAC), to acquire a technology that would enable it to use refuse derived fuel (RDF) instead of coal as fuel in its cement plants.

With this initiative, the company is looking at reducing its fuel cost by around 25 per cent.

Currently, Grasim, like other cement producers, relies almost entirely on coal for fuel, with fuel costs forming around 70 per cent of the total cost.

RDF is obtained by processing municipal solid waste (MSW) to separate the combustible fraction from the non-combustibles, such as metals, glass and cinders. It is used as a low-cost additive, which can reduce costs of generating heat or electricity in a variety of applications.

The company has already kicked off a pilot project at its Reddipalayam unit and would be shifting to the RDF model at Chittorgarh, Indore and Ratlam plants subsequently, said Grasim executives.

The company along with TIFAC is in talks with the municipal corporations of Tiruchi, Indore and Jaipur on modalities of procuring MSW.

"Grasim officials have approached us to set up an MSW processing plant to produce RDF, which they can use in their cement kilns. We have agreed in principle and will sign the agreement shortly," said Government sources. A consortium formed by the TIFAC, APTDC (Andhra Pradesh Technology Development Council) and Selco International Private Ltd had set up a pilot project in Hyderabad in December last year to generate electricity from MSW.

The use of municipal waste as fuel for cement plants is routinely followed in countries of the European Union (EU), with several countries even providing subsidies to cement manufacturers such as Lafarge and Italcementi.

TIFAC to help Grasim reduce fuel cost by 25 per cent.