Presentation SPC - Feb 25th 2010

DISCUSSIONS ON PROJECT PROPOSALS FOR TAMILNADU

By

Dr. G.Kumaravelu. I.F.S/ (Retd.), Full Time Member, Tamil Nadu State Planning Commission, Chennai-600 005.

1. ALLEY CROPPING- (FOOD AND WOOD)

2. BAMBOO FARMING

3. BIOMASS GASSIFIER

Global Warming Assault

cannot be solved by

‘Promises and band-aid measures

The significant problems that we faced today, cannot be solved with the same level of thinking we were at, when we created them.

Our challenge right now is to determine how a different land use would have either a net benefit or a net cost in terms of carbon storage capacity.

-Achim Steiner,

Executive Director,

U.N. Environmental Programme

His Excellency The Governor of

Tamil Nadu addressed the Legislative

Assembly on 06.01.2010

He said that recognising the fact that the humanity is a mere thread in the fabric of nature and this thread cannot exist independently. This Government will implement schemes for protection of the environment and promotion of clean energy.

For this purpose, an ‘Environment Protection and Renewable Energy Development Fund’ will be established by this Government.

Institutional governance systems should influence the ability of public policies, industries and corporations to adapt and transform their activities for meeting the issues associated with climate change.

(Griffith Haigh and Rassias, 2007)

‘Climate Change’ is a ‘megathing’

while the tools of Economics are for

micro changes at the margins.

Nevertheless.........

Programmes have to be ……..

•Economically Viable

• Ecologically emphathetic

•Environmentally ameliorating

•Aesthetically appealing

•Location specific• Cost effective• Adoptable• Acceptable• Pragmatic• Time bound

Need

Shift from Hydrocarbon Economy to Carbohydrate Economy

(Biochemical from Petrochemical) Tilling not Drilling Biology not Geology Depletable resource to renewable resource Subsistence economy to surplus economy

To uplift the contribution of the Tamil Nadu Primary sector to Economy, from – to +, the land based asset sectoral activities need to be rectified, diversified and developments integrated

We should aim at building up- an efficient and comfortable life in

Rural Areas.- achieve an agro-industrial structure- conquer rural unemployment.- stop rural decay.- arrest the seemingly irresisteble drift of

destitute people from the country-side

into BIG CITIES.

FAO Projections for INDIA - 2010

Fire wood and char coal.. 344 million tonnes

Industrial round wood .. 37 million cu.m.

Sawn timber .. 33 million cu.m.

Paper/Boards .. 5.7 million tonnes Wood based Panel ..1.3 million tonnes

Total mismatch between demand and supply

Forest resources cannot meet the growing demand.

Hence Agro-Forestry plantations and imports play major role in bridging the demand availability gap.

SCHEME I

tu¥nghu« ku« eLnth«tu¥nghF« Ja® j鮥ngh«

Cogeneration of Wood and Food

Trees to be planted on the Bunds of cultivated lands and inside in rows

Participants

T.N.F.D. T.W.D.C. S.S.F.R.D. School Education Department Research Institute Tree growers Association

MODEL IOnly bund planting (4 acre plot)

+ + + + + + + + + + + + + ++ + + +++++++++++ + + + + + + + + + + + + + + + +

++++++++

++++++++

+ + + + + + + + + + + + + + + +

Model IIBund + ‘+’ model

+ + + + + + + + + + + + + ++++++++++

+ + + + + + + + + + + + + +++

++++++++

++++++++

+ + + + + + + + + + + + +++

Only ‘+’ model (1 acre)

Model-I : Only Bund/acre : 320 Nos.

Model-II : Bund +, ‘+’ design : 400 Nos.

Model-III: Only ‘+’ design : 80 Nos.

Out of 145 lakh acres

Only 1.25 lakh acres of wood and food alley cropping with 5 crore trees.

kaya senegalensis

TNFD

Tamil Nadu Forest Department –Forest Extension Centre, Neyveli.

3 years old – 50 cm girth – 400 per acre

Complementing not confronting

Kumiz tree 1 year old – 40cm gbh Gmelina arborea

Kadambam Maram .

Anthocephalus cadamba 6 year old 105 cm gbh 15 cft

Value 5000 rs per tree

Casurina junghuniana Kapan kupan provenance

Mist tent

Mist tent

Melia Dubia – Bund Planting 5 years old

Melia Dubia – Bund Planting 5 years old

Bund planting-Teak

Harvestable Age

1. EUCALYPTUS CLONES 5 YEARS 2. CASUARINA CLONES 5 YEARS 3. TEAK 15 YEARS 4. MALAI VEMBU 6 YEARS 5. BAMBOO 4 YEARS (every year harvesting) 6. KUMIL 10 YEARS 7. KADAMBA MARAM 10 YEARS 8. NEEM 10 YEARS 9. PUNGAN 5 YEARS (every year seed harvesting) 10. RED SANDERS 20 YEARS

SPECIES NO. OF SEEDLINGS

TO BE RAISED PER

YEAR (in Lakhs)

HARVEST AGE

TOTAL INCOME AT HARVEST AGE/TREE

(RS.)

AVERAGE INCOME PER YEAR PER TREE

EUCALYPTUS CLONES

345 6 YEARS 1200 200

CASUARINA CLONES

300 6 YEARS 1000 160

TEAK 10 15 YEARS 10000 660

MALAI VEMBU

02 6 YEARS 4000 640

BAMBOO 02 4 YEARS 1200 300

KUMIL 100 10 YEARS 8000 800

KADAMBA MARAM

100 10 YEARS 6000 600

NEEM 20 10 YEARS 2500 200

PUNGAN 10 5 YEARS 1000 200

ECONOMICS

Advantages

COCONUT: Yields after 6th Year Net profit Rs. 100/Tree in 6th Year

Only expenditure till 6th year –100 litres water/Tree/Day

• TREES: One time harvest from 5 to 10 yearsRs.200 to Rs.300/Tree/Year generated.Rs.1200 to Rs.1800/Tree/6th Year harvest1/10th of water required than that of coconut.

Magalir Thittam(kfë® Â£l«)

‘Tamil Nadu Corporation for Development of Women’

has proposed formation of an

‘International Fund for Agriculture Development and Economic activities

for women’.

Proposed activities under IFAD

On farm investment in soil reclamation and land levelling.

Development of Agro and Social Forestry.

350 blocks – 5 crore seedling 1 Block – 1 lakh seedling Seedling raising TNFD Clones to be procured from TNPL.

1 SHGM – FARMER SCHOOL CHILD. 5000 well performing SHGS to be selected 50,000 SHGM to be trained by TNFD –

Research and Extension Centres. Training in Bund Planting models and

planting techniques.

50,000 Farmers 50,000 SHGMs 50,000 School Children 5 crore seedlings Simultaneous monsoon planting 50 days activities only for planting

Benefits

Farmer: Quality seedling at subsidised price

Planting cost reimbursed Market tie up. Ensuring enhanced income and

therefore profit.

Pitting and Planting cost : Rs.6.00

After the seedlings are planted, after inspection, the amount can be released to the farmer through Bankers’ cheque or Demand Draft.

Maximum of 1000 seedlings per farmer as per scheme concessional cost to be supplied.

Over and above, he can purchase more seedlings, if desired, at full cost (Rs.6.00) and undertake planting at his own cost.

Self-Help Group Member

Incentive for involvement

Re.1 to be paid per established seedling.

Re.1 per tree per year for ‘carbon credit’ (1 tree – 20 kg biomass per year)

School Children

Involvement Appreciation Certificates of Merit Additional Marks

Technology support

G.P.S. (Geographical Position System)

G.I.S. (Geographical Information System)

Digital Camera

Head : FOREST Sub-Head :Increasing Tree cover outside Forest areas. Allotted to :Tamil Nadu Water Development Agency Programme :Waste Land Development

Programme Fund allotted :Rs.340 crores for 11th Plan (Rs. 300 crore available)

FUND

50 crore trees, if thus planted in 5 years, Will support Rs.10,000 crore turnover per

year as wood products. Contribution of Primary sector to economy

ensured and enhanced. Could generate downstream employment to

50 lakh people. Direct income enhancement to 100 lakh

people Totally 1.5 to 2 crore people in the rural area

will be benefited.

These 50 crore trees could earn Rs.500 crore/year as carbon credit apart from their biomass sale profit.

Immediate Requirements

Revamping of Forest Extension Centres

Provision of vehicle, GPS, Digital camera for all the recently formed and appointed 31 Forest Extention Officers one in each District in Tamil Nadu.

Budget for seed collection and clones production.

Bamboos Farming/Carbon Farming

Total cultivated Land

in Tamil Nadu : 145 lakh acres

* Block Planting of Bamboo:5 lakh acres proposed

Vegetative propagation of bambusa balcooa, Amaravathy Research Centre

Planted in 1m3 pit with 2 kgs. Vermicasting, 100 gms. VAM, 20 gms. of phosphobacteria Azosprillum

Bambusa tulda – 2 Years old, 25 culms / clump. Andiyur Research Centre – Rainfed condition

Bambusa nutans – 5 Years old 1 ha. at 6 m. x 6 m. espacement. Research Centre, Neyveli – Rainfed condition – Ave. 42 culms / clump

Carbon content is 40 to 50% in total Bamboo Biomass

N.L.C. Carbon emission Per day 70,000 tonnes of CO2 emitted during the production

of 2450MW ofelectricity through lignite burning

Affluent Society

become

Effluent Society

Wasteland Development Programme

About 9.5 lakh acres available under 3 categories of land covered under the scheme.

(Source: Working Group report on soil and water conservation)

1. Total extent distributed by the

Revenue Department : 2,11,259 acres

2. Allotted to Agri-Eng. Dept. : 1,46,102 acres

3. Extent of land reclaimed :52,689 acres

Therefore, 52,888 acres available for reclamation as on date.

We are aiming for 10,000 Acres only to be planted during 2010-2011.

Reclaimed lands where land development,

pitting, planting and irrigation facilities

have been provided could be used for

planting bamboos.

NADP can be made use of.

Protective irrigated farm land – Tamil Nadu Maximum income

generated per acre : Rs.10,000/acre/year Minimum income

generated per acre : Rs.3,000/acre/year. Average income

generated per acre : Rs.7,000/acre/year

BAMBOO Income from 4th year onwards Thornless Bamboos can yield 10 to 20

Tonne/acre/year. @Rs.3000/Tonne, annual income of

Rs.30,000 could be assured. TNPL – Buy back: From 1 lakh acres of

Bamboo plantation, 10 to 20 lakh tonne Bamboo could be harvested every year.

Production of Vermicasting

Production of Bio-fertilizers

VERMICASTING PRODUCTION 10 TO 20 TONNES/ACRE/YEAR UNDER BAMBOO

CANOPY

Cost of production : Rs.2000/tonne Selling price: Rs.4000/tonne Profit : Rs.2000/tonne For 10 tonnes profit : Rs.20,000/year One acre of Bamboo : Rs.20000/year

plantation profit

50 lakh tonnes of vermicasting can be applied to 50 lakh acres of Agricultural lands. 1 tonne per acre after mixing with Bio-fertilizer. Dry land crops can yield 20% more.

Activated charcoal from bamboo can be used in admixture with bio-nutrient and bio-fertilisers enabling 30% addl. higher yield.

Mushroom

Mushroom cultivation under Bamboo plantation (anticipated)

1 tonne per acre@ Rs.30 per kg for

1 tonne : Rs.30,000/acre

Carbon Credit

@10 US $ per tonne of CO2 sequestered, 20 tonnes/acre 200 US $ could be sourced as Carbon Credit (approximately Rs.10,000/-)

Market for Bamboo

WORLD 10 BILLION us $ AS ON 2008 50% BY

CHINA Expected to be 20 billion by 2015 (double) INDIA Rs.6505 crores in 2006 Expected growth: Rs.26,000 crore by 2015

(National bamboo mission)

Bamboo Fabric

Most comfortable to wear than cotton or polyester

Antibacterial, antifungal Absorbs twice the amount of moisture

than cotton Will not hold odour Fast dryingTwice the price of cotton. International Market for innerwear

Proposal

Under NADP scheme, if clusters with a minimum of 10 acres with 1 Bore well is allowed (at present a minimum of 50 acre per cluster with 3 Borewells) 5 lakh acres could be brought under Bamboo cultivation very early.

Bamboo Propagules Flowers once in 30 to 40 years Hence only vegetative propalgation

possible T.N.F.D. has established experimental and

demonstration plots of selected varieties. Plots could be harvested immediately. Soil working fertilizer application Rooting of cuttings from the felled and new

culms that merge

Plots could be harvested immediately. Soil working fertilizer application Rooting of cuttings from the felled and new

culms that merge. Cost of production of rooted cuttings :

Rs.10/-

(Rs.20 to 30 in open market)

Restricted source: For 20 lakhs : Rs.2 crore 2010 : Rs.30 lakhs 2011 : Rs.170 lakhs

Thorn less Bamboo

T.N.Forest.Department. : 3600 clumps

@ 30 culms / clump

@ 50 cutting/culms Total cutting for rooting : 50 lakhs

@ 50% success : 25 lakh plants could be

produced.

Model - II

1 SHG = 1 Acre Bamboo plantation 1 SHG = 1 Cow 1 Cow = 10-11 Kg dung/day

@ 1 (cow dung) 8(soil+litter) ratio 365 days – 4 tonnes of cow dung + 20 tonnes of soil – litter 20 tonnes Vermicasting/acre/year.

Immediate Requirement

Identification of lands – 10,000 acres Selection of SHGs – 10,000 Nos.

(1 acre per SHG) Thornless bamboo propagule production

by TNFD – 15 lakhs. By TNPL – 10 lakhs. Cuttings can be airlifted from Assam,

Tripura and propagules could be produced by TNPL under their high-tech mist chamber conditions.

Total revenue for SHG per year

Bamboo sale : Rs.30,000 Vermicasting : Rs.20,000 Mushroom : Rs.20,000 Total : Rs.70,000/approx.

Application of charcoal of Broad level Trees to agricultural crops reduced the use of chemical fertilisers by 1/20th increased disease resistence to plants.

Water content of charcoal layer in the soil was remarkably higher at 40% even in mid summer compareed with 5% in the outside charcoal zone soil mass. (Japan Biochar Association-JBA)

Growing Trees and burying charcoal is the apt method of carbon sequestration.

CARBON FARMING

to mitigate

GLOBAL WARMING

In Japan, at least 100 thousand tonnes of Biochar is applied to agricultural lands annually. They contain 80% carbon and so 250 thousand tonnes of CO2 are shut in the soil and locked without leakage.

-CARBON FARMING.

Clean Energy

MELIA DUBIA BASED BIOMASS GASSIFIER(electricity production)

Why Green Energy?

N.L.C. Carbon emission Per day 70,000 tonnes of CO2 emitted during the production of 2460MW of electricity through lignite burning. 250 lakh tonnes per year. Total coal based power generation in Tamil Nadu 5430 MW. Around 500 lakh tonnes CO2 emitted into atmosphere per year in Tamil Nadu alone.

Why energy?India

Electricity demand and supply gap is more than 20%

10 out of 28 States on deficit.

For commercial and industrial power use alone, so far, Rs.1 lakh crore have been spent on buying ‘Invertors’ in INDIA.

This amount could be utilized to generate 20,000 to 30,000 MW power.

Melia dubia Biomass Gassifier

Electricity Production

1 MW production : 24 tonnes/dayFor 365 days : 8760 tonnes/years@ 50 tonnes per acre/year : 175 acres to be planted

HIGH YIELDING CLONES

Only recently, very high yielding varieties of Melia dubia, capable of yielding 50 tonnes/acre/year have been evolved.

- TNFD – Research and Extension wing.

By manipulating the environment and maintaining quality planting stock of clones of these species, it is possible to scale up the yield to 100 tonnes/acre/year, which can be world record.

- TNPL can enhance the clonal production through their high tech mini cutting macro propagation centres. 90% rooting without harmone have been achieved recently by TNPL in Melia dubia.

High yielding trees

Date of Planting: Febraury 2008 20 Months old

50 kg per tree/50 tonnes/acre/year

1 Year Old – 55kg weight - 43cm gbh

PPP Model (1 MW)

1 Farmer : 2 Acres Melia 200 Farmers : Rs.2 lakh each Total : Rs.4 crore TNPL, TNEB : Rs.1 crore GOI-DNE subsidy : 1.5 crore

ECONOMICALLY VIABLE 1 MW –Machinery and

erection cost :Rs.6 crore Cost of production of electricity

@ Rs.2000 per tonne of wood :Rs.2/per unit Selling rate of electricity :Rs.4.50/unit Profit/unit :Rs.2.50 For 24,000 units/day : Rs.60,000/day Activated charcoal : Rs.20,000/day

(2 tonnes/day)

Total :Rs.80,000/day

Breakeven in 3rd year

ACTIVATED CHARCOAL

15% of 9000 tonnes of wood 24 tonnes per day wood 3 tonnes per [email protected] per tonne Income : 15,000/day or Rs.5 crore/year

5000 Melia based Biomass gassifier could be established in Tamil Nadu to produce 5000 MW electricity.

About 10 lakh acres are required out of 145 lakh acres of total cultivable lands.

The success of this Green energy programme can pave way for establishing even upto 10,000 MW power production in Tamil Nadu using alongwith Melia, other fast growing species like bamboo, Gmelina, Acrocarpus, Anthocephalus etc.

These are winning horses. For this to happen, the land required

will be 20 to 25 lakh acres of the 145 lakh cultivable lands available in Tamil Nadu.

Environmentally ameliorating

Total CO2 emitted by

coal/lignite based

Power plants in T.N.: 500 lakh tons/yr.• 10 lakh acres of melia

can sequester : 500 lakh tons/yr.

(for production of 5000MW electricity)

Biomass gassifier is carbon neutral.

ECONOMICALLY VIABLE

PROFIT FOR FARMER Sale of 50 MT/acre at Rs.2000/tonne : Rs.1,00,000/year Profit from the partnership in the gassifier unit : Rs.70,000/year for each partner(Projected dividend : 35% Assured dividend : 20%

Income in the farmer's hands from sale of biomass

No. of acres belonging to each participating farmer acre/farmer 15

Area under annual crops acre/farmer 10

Area under Milia Dubia energy plantation acre/farmer 5

Yield of agro residues/farmer @ 8 MT/acre x 10 acre MT/farmer 80

Yield of Biomass from energy plantation @ 50 MT/acre x 5 acres

MT/farmer 250

Total biomass from each farmer MT/farmer/y 330

Selling price of agro residues Rs./MT 500.00

Selling price of woody biomass Rs./MT 1500.00

Income per farmer from sale of agro residues Rs./y 40,000.00

Income per farmer from sale of Milia Dubia Rs./y 375,000.00

Total income per farmer from sale of biomass Rs./y 415,000.00

Annual quantity of biomass required for a 5 MW Power Plant @ 82% Plant Load Factor

MT/year 71,800

Number of farmers No. 220

Average income from biomass sale for 10 years @ 5% annual increase in price

7,087,800.00

Income in the farmer's hands from investment in the power plant

Power Plant project cost Rs. Crores 34.50

Total Equity Capital @ 30 Rs. Crores 10.35

Equity Contribution from each farmer @ Rs. 1 Lakh/farmer Rs. Crores 2.20

Equity Contribution from private investor Rs. Crores 8.15

Net profit for the first year Rs. Crores 9.16

Farmer's profit share Rs. Crores 1.95

Income per farmer from profit share Rs/annum 88,500.00

Simple Return on investment % 88.50%

Income per farmer over the next 10 years Rs/annum 11,04,900

Issues to be decided1. Forest Department :

Raising seedlings 5 or 10 crores.Numbers to be decided. One per Block.350 Blocks? Involving Forest Extension centers-in training,monitoring, and

advising in maintenance. Helping in market tie up with industries. Coordinating between society to social Forestry,SHGS. Involving State Forest Research wing,IFGTB,TNAU in evaluating the

biomass/carbon sequestration status. Arranging for carbon credit access Seed collection from plus trees and quality seedling production Bamboo propagule production.Numbers have to be around 15

lakhs.

2.Agriculture Department Identification of 10,000 Acres to 15,000 acres of

land and farmers for bamboo cultivation. Linking NAD Programme to this project. Support of Bamboo mission Modifying NADP norms - one Bore well for 10

Acres. Irrigation and power facilities Mushroom cultivation under Bamboo

plantation(TNAU) Vermicasting Production under bamboo

(TNFD,TNAU)

3.Tamilnadu Women Development Corporation

Participation in Wood and Food Programme. Participation in Bamboo Cultivation. Selecting of Well Performing SHGS for these two

programmes. Training with TNFD Extension in low Cost seedling

production technique.

4.TNPL Production of clonal plants of sissoo,malaivembu,kumil,Euc

and casuarina - Micro and Macro propagation. Production of maximum number of Thorn less bamboo

propagule upto 10 to 15 lakhs. Buying Melia dubia Bamboo for paper pulp –Buy back Lead participation in establishing I MW – Biomass gassifier or

5 MW – Biomass gassifier – turbine power plant as PPP. Partnership with TNEB? TNPPL or can there be an exclusive Tamilnadu green Power

company(TNGPL).

5.Tree Growers Association 31 in existence,one per district. Involving them in nursery raising Involving in various stages of implementations of

the programmes in each district. Tie up with society for social forestry and

development. Involving in PPP for green power generation.

6.Tamilnadu Government Rs.300 Crores earmarked under

FORESTRY HEAD for ‘Increasing Tree cover outside Forest Areas’ in the 11th Five Year Plan,which remains unutilized,may be transferred to newly proposed ‘Environmental Development Fund’ by the Government, to fund these proposed projects.

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