Burnt Lime (With Oil Firing and Pollution Control System)

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Product Code 21126, 21127 and 21131
Quality and Standards IS 1886 : 1961
IS 712 : 1973
IS 1624 : 1974
Production Capacity: Qty. Quantity : 16, 000 M.T. (per annum)
Value : Rs. 6,67,91,000
Uploaded on 4th January 2007


Burnt Lime also called as quick lime or unslaked lime is made out of lime stone deposits which are wide spread throughout the country. The burnt lime is extensively used as a mortar in the construction of building by mixing in with suitable proportion of sand and surkhee of burnt clay as aggregate. It is also used for white washing of houses and building. Iron and steel plants, and foundries use lime as a fluxing agent in considerable quantity. Some drugs and pharmaceuticals, paper industry, pesticides formulations and other chemical processing industries are using the unslacked lime.

Market Potential

There is rapid development taking place in the construction of buildings in rural and urban areas housing development programmes and industrialisation activities throughout the country, burnt lime has a good demand. The main application of lime, used as a mortar in the construction of building, by mixing it in suitable ratio with sand and surkhee of burnt clay, white washing of house and buildings, iron and steel industries, fluxing agent in foundries, drugs paper and pharmaceuticals industries, some chemical industries are also using the lime as a chemical processing agent. The demand for this product is also increasing day-by-day. In the view of this, there is a very good scope for setting up some new units.

Basis and Presumptions

  • The Proposed unit will carry out lime calcination about 30 Tonne/ day (30 TPD), on two shifts basis, having 300 working days in a year.
  • Annual expenses such as salary and wages other contingent expenses have been calculated for 12 months.
  • It is expected that the unit will achieve its full capacity during the first year of operation itself.
  • The wages proposed in this profile are per the prevailing wages practice. The staff and labour have been taken on the basis of minimum applicable.
  • Normal rate of interest of about 12% is considered both for recurring and non-recurring investment.
  • Margin money is generally @ 10- 25% and however it varies according to the location and the project and the rules of financial institutions.
  • The normal operative period it estimated to be more than 15 years considering the present level Technology. The usual repayment period of loan is about three years.
  • The term loan varies from one financial institution to another and general minimum gestation period is 6 months and it could be extended upto two years. Maximum period for repayment of loan would be less than four years including gestation period.
  • The production capacity of the plant and machinery would be 60% in the first year, 70% in the second year and 80% in the third year respectively.
  • The land value and construction cost has been taken on average basis, as it varies from place to place.
  • The cost of machinery and equipment as proposed in the project profile may vary from place to place consulting the local machinery suppliers and traders and varies from place to place at the time of preparation of this project.

Implementation Schedule



Starting Completion
Survey, for collection of data in respect of demand, raw material, including power, fuel, available of technology, pollution control 0 to 2nd month
Arrangement of margin money 2nd to 3rd month
Preparation of project document and registration 2nd to 3rd month
Financial assistance 4th to 6th month
Selection of site and development of land 4th to 6th month
Clearance for pollution electricity, fuel and water, tie up for availability 5th to 7th month
Construction/selection of machine identification 6th to 7th month
Electricity, Water etc. 4th to 6th month
Construction/modification 7th to 10th month
Placement of order for machinery 6th to 9th month
Transportation and installation of machinery and equipments 6th to 10th month
Selection of raw material and replacement of orders 8th to 11th month
Receipt of raw material - to 11th month
Installation of machinery etc. 10th to 11th month
Trial produciton     12th month

Technical Aspects

Process of Manufacture

The limestone mined from quarry or rivers should be free from all defects and impurities, once washed and cleaned again for removal of dust particles. These stone blocks are crushed manually or by jaw crusher in sizes of 3 to 6 inches. Oil fired vertical shaft kiln (VSK) refractory lining inside portion having about 33 metre conical vertical chimney, is used for the firing or calcination of lime stone at a temperature of about 900O C. The chimney of VSK is so arranged that the speed of exhaust gases and fumes in the chimney may travel @ 9 to 12m/sec. The diameter of chimney is so calculated that the lower/ bottom portion of chimney is one third of the total stack of chimney. Skip bucket with rope, which is driven by electric motor, is arranged for loading of stonepieces for firing of calcination. These stone pieces are loaded from the top of kiln, this process is done regularly as per the requirement of stone calcination. A cyclone or dust catcher is also arranged with a scrubber which collect about 50 to 80% dust particles and removed with scrubber. Approx. 4 kg. 6 kg. sludge/hr. is removed by this process which can be discharged to land fill. The firing is done with the help of burner. The firing is initiated from the bottom section of kiln and after a suitable interval the calcined lime is unloaded through the outlets provided at the bottom section of kiln. Property calcined lime is sorted out in different grades like A, B and C grade. Semi burnt lime stones are charged again in the kiln for calcination. The dust, clinkers ash and other harmful materials are removed from the finished product properly sorted lime is packed and stored for sale.

Quality Control and Standards

The Bureau of Indian Standards has formulated and published the following specifications for the necessary guidance and maintenance for the quantity of different types of lime product.

IS 1861:1961 Lime in vertical mixed feed type kilns and its manufacture
IS 712:1973 Methods of testing for building lime
IS 1624:1974 Fields testing and building lime and mortars

Production Capacity (per annum)

The production capacity envisaged in this project is about 8, 000 MT, valued at Rs. 1, 35, 38, 428 per annum.

Motive Power

Approximate 36000 KWH per annum power will be required.

Pollution Control

The project does not create any noise or water pollution, proper dust collector or cyclones arranged with a dust scrubber system to control 50% to 80% dust. The oil fired vertical shaft kiln having 33 meters height of removes all types of flue gases and smokes very easily and does not create any dust/air pollution. However, necessary clearance or NOC is to be obtained from the state pollution Control Board. Eye goggles and hand gloves may be used during the working hours.

Energy Conservation

Properly insulated and refractory lined furnace fuel on account of energy conservation. The oil fired furnace has better combustion control facilities which helps in saving energy from 30% to 40% when compared to conventional coal fired shaft furnaces.

  • Machinery and equipments should be lubricated properly at regular intervals as per the schedule.
  • All the plugs may be kept off, when the electricity is not required.
  • The belts on pullies may be tightened properly during the working process.
  • The layout of the plant should be maintained systematically.

Financial Aspects

A. Fixed Capital

(i) Land and Building


Land area-one acre 16,00,000
Office and work shed area-500 sq. mtrs Rs. 10,000 50,00,000
A. Store, Workshop, Laboratory area about 500 sq.mtrs.@ Rs. 7000 /Sq. mtr 35,00,000
Boundary wall, MS Gate, vehicle's stand, time office etc. @ 5000 / Sq. Mtr. 15,00,000
Total 1,16,00,000

(ii) Machinery and Equipments (All Indigenous)


Qty. (No.)

Value (No.)

(a) Production Unit .
Oil fired vertical shaft kiln with Refractory lining inside portion of kiln having 33 metre height chimney made of steel Fabricated plate form type having all arrangement with skip bucket and burners etc. Capacity-30 Tonne per day 1 No. 10,00,000
Jaw crusher for crushing the stone or pebbles with10 HP motor and starter etc. 1 No. 4,00,000
Rotary self-driven for sieving the lime having different mesh sizes with 1.5 HP motor and starter etc. 1 No. 1,00,000
Wheel barrow for handling of raw material and finished product 4 Nos. 1,20,000
Balance for weighing upto 500kg. 2 Nos. 50,000
Overhead water tank; capacity 5000 litrs. Water storage having well boring jet with 2 HP motor and starter, and pipe line fitting etc. 1 No. 3,00,000
Bag filling and sewing machine 1 No. 1,00,000
Generator set capacity 50 kVA 1 No. 8,00,000
Other tools, fixtures, dies, hand tools, racks etc. L.S.- 1,20,000
(b) Testing Equipments L.S. 1,00,000
(c) Pollution Control Equipments
For air pollution control,   10,00,000
For liquid pollution control   8,00,000
Material handling equipment   9,00,000
Fencing for plantation L.S. 80,000
Hand gloves, eye goggles etc. L.S. 20,000
( d) Energy Conservation Equipments L.S. 1,00,000
(e) Electrification and Installation @ 10% on machinery and equipments   5,20,000
(f) Cost of office furniture and equipment like working tables, chair, Almirah and cash box etc. L.S. 3,00,000
Total cost of machinery and equipments (a+b+c+d+e+f) L.S. 1,00,000
(iii) Pre-operative Expenses   3,00,000
Total Fixed Cost (i+ii+iii)   1,87,10,000

Working Capital (per month)


Land and Building 2,57,00,000
Machinery and Equipments 2,28,00,000
Total 4,85,00,000

B. Working Capital (per month)

Staff and Labour (per month)



Salary / (Rs.)

Total (Rs.)

Administrative Staff
Manager-Cum-Technical Expert 1 15,000 15,000
Supervisor and sales man 2 10,000 20,000
Clerk-Cum-Cashier and finance man 2   15,000
Store Keeper 1 5000 5,000
Technical (Skilled and Unskilled Workers)
Skilled workers 8 5,000 40,000
Semi-skilled workers 8 4,000 32,000
Unskilled workers 12 3,500 42,000
Peon 2 3,000 6,000
Chowkidar 4 3,000 12,000
Total 1,87,000
+22% perquisites on salary 41,000
Total 2,28,000

Raw Material (per month)


Qty. (MT)

Rate (Rs.)

Value (Rs.)

Lime stone blocks (including transport charges 1600 M.T. 500 8,00,000
Packing material like gunny bags etc. L.S. L.S. 25,000
Total 8,25,000

Utilities (per month)


Qty. (MT)

Rate (Rs.)

Value (Rs.)

Power 6000 kWH 4.0 24,000
Fuel/Furnace oil 150 KL. 18,000 27,00,000
Total 27,24,000

Other Contingent Expenses (per month)


Postage and Stationery 5,000
Sales and marketing expenses 41,000
Repair and Maintenance 41,000
Telephone 5,000
Consumable store 5,000
Travelling and Local expenses 25,000
Insurance 30,000
Total 1,52,000

Total Working Capital (per month)


Staff and Labour 2,28,000
Raw material 8,25,000
Utilities 27,24,000
Other Contingent expenses 1,52,000
Total 39,29,000
Working Capital for 3 months 1,17,87,000

Total Capital Investment

Fixed capital Rs. 1,87,10,000
Working capital for 3 months Rs. 1,17,87,000
Total Rs. 3,04,97,000

Financial Analysis

Cost of Production (per annum)


Total recurring cost per annum 4,71,48,000
Depreciation on building @ 5% 5,00,000
Dep. on kiln @ 20% 2,00,000
Dep. on machinery and equips. @ 10% 5,69,000
Dep. on tools fixture, dies, racks @ 25% 30,000
Dep. on office furniture and equips. @ 20% 60,000
Interest on total capital investment @ 12% 36,60,000
Total 5,21,67,000

Turnover (per annum)


Qty. (MT)

Rate (Rs.)

Value (Rs.)

Burnt Lime 16,000 4,174 6,67,91,000

Net Profit (per annum)


Total Turnover – Cost Production

Rs. 1,35,36,000 – 1,07,88,428

Rs. 27,47,572

Net Profit (per annum)


Total Turnover – Cost Production

Rs. 1,35,36,000 – 1,07,88,428

Rs. 27,47,572

Rate of Return (per annum)


Net Profit × 100

Total capital investment

1,46,24,000 × 100



Break-even Point

Fixed Cost (per annum)


Total depreciation 13,59,000
40% of Staff and Labour 10,94,000
40% of utilities and Other Contingent expenses (excluding insurance) 1,30,15,000
Insurance 3,60,000
Interest @ 12% 36,60,000
Total 19488000



Fixed Cost × 100

Fixed Cost + Profit

19488000 × 100

19488000 + 1,46,24,000


Addresses of Machinery and Equipment Suppliers

  • M/s. Khadi and Village Industries Commission
    No. 6, Dr. D.V. Gundappa Road,
    Gandhi Bazar,
    Bangalore-4 (Kiln)
  • M/s. Amic Industries
    10, B. T. Road,
    Kolkata – 56
  • M/s. Keshab Machineries Pvt. Ltd.
    Bose Park,
    24 Parganas (West Bengal)

Raw Material Suppliers

All the raw materials are locally available.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com