Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb

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Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Establishment of Waste to
Energy plant in Surat

Urban development
Government of Gujarat
Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Contents

     Project Concept                                   3
     Market Potential                                  4
     Growth Drivers                                    6
     Gujarat – Competitive Advantage                   7
     Project Information                               8
         - Location/ Size
         - Infrastructure Availability/ Connectivity
         - Project outline
         - Key Players/ Machinery Suppliers
         - Potential collaboration opportunities
         - Key Considerations
     Project Financials                                16
     Approvals & Incentives                            17
     Key Department Contacts                           18

Page 2
Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Project Concept

What is Waste to Energy plant?
    ►   A waste-to-energy (WtE) plant is a waste management facility that burns wastes to produce
        electricity. This type of power plant is sometimes called a trash-to-energy, municipal waste
        incineration, energy recovery, or resource recovery plant.
    ►   Waste-to-energy plants are similar in their design and equipment with other steam-electric
        power plants, particularly biomass plants. First, the waste is brought to the facility. Then, the
        waste is sorted to remove recyclable and hazardous materials. The waste is then stored until it
        is time for burning. The waste can be added to the boiler continuously or in batches,
        depending on the design of the plant.
    ►   Most waste-to-energy plants burn municipal solid waste, but some burn industrial waste or
        hazardous waste.
    ►   Waste-to-energy plants emit less air pollution than coal plants, but more than natural gas
        plants.

                                  Waste-to-Energy plant process

►   The residual waste is tipped into a bunker. A crane grabs the waste and places it into the feed
    hopper. The action of the moving grates turns the waste to allow it to burn fully.
►   The burnt out ash passes through the ash discharger onto an ash handling system, which
    extracts metal for recycling. The remaining bottom ash is recovered and can be used in the
    construction industry.
►   Hot gases produced in the combustion process pass through a boiler where heated water
    becomes steam
►   A turbo-generator uses the steam to produce electricity for export to the local power grid. The
    heat can also be used for industrial processes or residential district heating near the WtE plant.
►   The gases from the boiler go through an extensive flue gas cleaning process. This consists of a
    scrubber and a bag filter where particulates are filtered out. The cleaned gases are finally
    released to the atmosphere through the chimney.
Page 3
Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Market Potential -
Global
Global energy-from-waste market by value
   ►   In 2019, the energy-from-waste market is forecast to have a value of US$236 billion, an
       increase of 159.9% since 2014.
   ►   The compound annual growth rate of the market in the period 2014-19 is predicted to be
       21.05%.
   ►   With increasing urbanization, more waste is being generated globally. On the other hand, the
       need for energy is rising. WtE plants are on the rise because they solve both these problems
       effectively.
                    Global energy-from-waste market by value ( in US$ billions)

                                                                            236.3
                                                                 188.8
                                                      152.0
                                           124.9
                      90.9      104.7

                     2014a      2015a      2016e      2017e      2018e      2019e
Source: Marketline

  Global energy-from-waste market by volume

   ►   In 2019, the energy-from-waste market is forecast to have a volume of 1294 terawatt-hour
       (TWh), an increase of 107.4% since 2014.
   ►   The compound annual growth rate of the market in the period 2014-19 is predicted to be
       15.7%.

                      Global energy-from-waste market by volume ( in TWh)

                                                                           1294.2
                                                                 1093.1
                                                      928.2
                                           801.9
                      624.1     702.1

Source: Marketline   2014a      2015a      2016e      2017e      2018e      2019e

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Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Market Potential - India

 Indian energy-from-waste market by value
   ►   In 2019, the Indian energy-from-waste market is forecast to have a value of US$0.25 billion, an
       increase of 104% since 2014.
   ►   The compound annual growth rate of the market in the period 2014–19 is predicted to be
       15.3%.
   ►   Accounting for 17% of the world’s population, the amount of waste generated in India is huge.
       The recent govt. initiatives for renewable energy and proper waste disposal give a huge boost
       to WtE plants.
                     Indian energy-from-waste market by value ( in US$ billions)

                                                                             0.25
                                                                  0.21
                                                       0.18
                                            0.16
                        0.12      0.14

                       2014a     2015a      2016e     2017e      2018e      2019e
Source: Marketline

  Indian energy-from-waste market by volume

   ►   In 2019, the Indian energy-from-waste market is forecast to have a volume of 1.7 TWh, an
       increase of 43.5% since 2014.
   ►   The compound annual growth rate of the market in the period 2014–19 is predicted to be 7.5%.

                        Indian energy-from-waste market by volume ( in TWh)

                                                                             1.7
                                                                  1.6
                                                       1.5
                                   1.3       1.4
                         1.2

Source: Marketline     2014a     2015a     2016e      2017e      2018e      2019e

Page 5
Establishment of Waste to Energy plant in Surat Urban development - Government of Gujarat - iNDEXTb
Market Growth Drivers

                         ►    In an amendment to Electricity Act 2003, the Ministry of Power
                              has incorporated a provision to buy 100% power generated by
 1                            WtE plants.
     Guaranteed market
     for electricity     ►    The Central Electricity Regulatory Commission has recently
     produced                 fixed a tariff of INR 7.04 per unit for power derived from
                              municipal solid waste. Thus, there is a guaranteed market for
                              the plant operators.

                         ►    Total MSW generation in India is 62 million tonnes per year. It is
     Generation of            estimated to increase to about 165 million tonnes in 2030 and
 2                            230 million tonnes in 2041.
     Municipal Solid
     Waste (MSW)         ►    Around 10,200 MT per day municipal solid waste is generated in
                              the state of Gujarat. Thus, there is no shortage for the plant in
                              the state.

                         ►    India is giving a strong push to renewable energy in line with its
                              commitment to cut carbon emissions by 35% and increase the
                              use of renewable energy sources to generate at least 40% of its
 3   Push to                  power needs by 2030.
     Renewable Energy    ►    Ministry of New & Renewable Energy , Government of India
                              announced the renewable energy target of installing 175 GW
                              capacity by 2022. Moreover, 15 GW of capacity is targeted
                              outside of solar and wind energy.

                         ►   India has the second highest urban population in the world.
                             Population of Indian cities will increase from 340 million in 2008
     Rising urban            to 590 million by 2030 –40 percent of total population. This will
 4   development in          lead to increased waste production and increased energy needs.
     India               ►   The investment required for building urban infrastructure in
                             India, over the next 20 years, is estimated at approximately USD
                             1 trillion

                         ►   All the municipal authorities are required to arrange for
                             collection, segregation, transportation and suitable disposal of
                             municipal wastes from the municipal towns/ cities according to
     Good urban              the MSW (M&H) Rules 2000- a must for Waste to Energy plant.
 5   infrastructure in
                         ►    Having an organized system for waste collection, segregation
     Gujarat
                             and transport is an essential precondition for the continuous and
                             smooth functioning of a WtE plant. Thus, plant operators do not
                             have to go through unnecessary hurdles.

Page 6
Gujarat - Competitive
Advantage
 Ease of Doing Business: Gujarat is the only state to have
 100% compliance with environmental procedures. The
 state also fares highly in terms of allotment of land and        “Gujarat ranked #1
 obtaining a construction permit, obtaining infrastructure       among Indian states
 related utilities and compliance with labour regulations.         in ease of doing
                                                                  business by World
                                                                     Bank (2015)
 One window clearance: Gujarat government has
 established iNDEXTb (Industrial Extension Bureau), single
 window clearance nodal agency to simplify the
 administrative procedures and accelerate industrial
 development in Gujarat.

 Key industries: Gujarat is the leader in key industrial
 sectors such as chemical, petrochemical, auto and its
 allied sector, pharmaceuticals, engineering, textile,
 jewellery etc.
 ►   Gujarat has attracted cumulative FDI worth US$13.3b
     from April 2000 to March 2016
 ►   Gujarat contributes around 19.1% to India’s total exports
     of goods in 2014-15
 ►   More than 10% of the country’s factories are in Gujarat
     while manufacturing sector contributes 28% to its GSDP

 Gujarat, with 42.6% of its population residing in the urban
 areas, is among the top three urbanized states in the
 country

 Gujarat Government will run a pilot project in 50 cities to
 generate power, fertilizer and reusable water by setting up
 solid waste management plants.

 Gujarat is well-equipped for skill development with several
 technical institutions (786 ITI’s and
 52 Skill upgradation centres) situated in the state

Page 7
Project Information

 Site Location

Development of Waste-to-Energy (WtE) Plant at Surat in Gujarat.

The project details are as follows:

    Locations                                             Surat, Gujarat, India

                                                                          Surat: Out of total 33
                                                                          districts, there are 16
                                                                          coastal districts of
                                                                          Gujarat. Surat is one of
                                                                          the major coastal
                                                                          districts in the state

►   Surat is a city located on the western part of India in the state of Gujarat. It is the second largest
    city in Gujarat, after Ahmedabad.
►   Located 284 kilometres south of the state capital, Gandhinagar; 265 kilometres south of
    Ahmedabad; and 289 kilometres north of Mumbai.
►   Surat is one of the cleanest cities of India and is also known by several other names like "The Silk
    City", "The Diamond City", "The Green City", etc.
►   Surat has been selected as one of twenty Indian cities to be developed as a smart city under the
    Smart Cities Mission.

                                       Surat : Key highlights

                  Population                44,66,826 (2011 census)

                  Area                      326.515 Sq. Km.

                                            Maximum temperature (avg.): 36.7°C
                  Temperature
                                            Minimum temperature (avg.) : 15.2°C

Page 8
Project Information

     Surat is well-connected with other districts and cities in Gujarat and India

 ►  Surat is connected with other districts of the   ►  The city is connected to Delhi Mumbai
    state such as Rajkot, Vadodara and                  Industrial Corridor (DMIC) which links
    Ahmedabad by rail.                                  Ahmedabad, Vadodara and Surat.
 ►  Hazira port in Surat is ~16 kms away from        ►  Proximity to NH-8 and NH-6 further
    the Surat railway station. In August 2015,          enhances connectivity to the city.
    Container Corporation of India started           ►  Surat also has very good connectivity with
    operating a regular train service connecting        other cities of the state such as Vadodara
    the port with Pithampur.                            (154 km) and Ahmedabad (265 km).
 Proposed                                            Proposed
 ►  The Mumbai-Ahmedabad bullet train project        ►  The government plans to construct an
    will have Surat as one of the stations.             INR900 billion tunnel road between Mumbai
 ►  A joint venture between the Indian Railway          and Surat.
    Station Development Corporation, the             ►  Proposed four-lane highways which are
    Gujarat State Road Transport Corporation            expected to improve connectivity in Surat
    and the Surat Municipal Corporation has led         include – Dakor-Savli, Vadodara-Dabhoi &
    to the initiation of a Multi Modal                  Surat-Olpad-Bardoli.
    Transportation Hub at Surat railway station.
 ►  In 2016, the Gujarat government assigned
    Delhi Metro Rail Corporation as a consultant
    for the proposed metro connectivity in Surat.
 ►  Rail connectivity was proposed for Hazira
    and Nargol ports in the 2016 rail budget.

 ►   Surat domestic airport is well connected to     ►  The nearest port is Hazira which is 25 km
     various parts of the country. The city is          from Surat, built with a protected harbour
     located ~275 kms from the international            design and additional waterfront for
     airport at Ahmedabad.                              development of non-LNG cargo handling
                                                        terminals.
 Proposed                                            Proposed
 ►  In January 2015, Airports Authority of India     ►  Letter of intent for development of Nargol
    gave an in-principle approval for cargo             port worth INR40 billion has been handed
    terminal at Surat airport worth INR70 million.      over to Cargo Motors Pvt. Ltd.
    The terminal is expected to be operational in
    2017.
 ►  In February 2016, Surat Airport Action
    Committee filed an online petition for an
    international airport at Surat.

Page 9
Project Information

 Infrastructure availability/ connectivity

                Rail                                                       Road

                                                      ►  The city is connected to Delhi Mumbai
►    Surat is connected with other districts of the      Industrial Corridor (DMIC) which links
     state such as Rajkot, Vadodara and                  Ahmedabad, Vadodara and Surat.
     Ahmedabad by rail.                               ►  Proximity to NH-8 and NH-6 further enhances
►    The proposed site in South West Zone of             connectivity in the city.
     Surat is ~15 kms away from the Surat railway     ►  Surat also has very good connectivity with
     station.                                            other cities of the state such as Vadodara
                                                         (154 km) and Ahmedabad (265 km).
Proposed                                              Proposed
►  The Mumbai-Ahmedabad bullet train project          ►  Proposed four-lane highways which are
   will have Surat as one of the stations.               expected to improve connectivity in Surat
►  In 2016, the Gujarat government assigned              include – Dakor-Savli, Vadodara-Dabhoi &
   Delhi Metro Rail Corporation as a consultant          Surat-Olpad-Bardoli.
   for the proposed metro connectivity in Surat.

                  Air                                               Port

 ►    Surat domestic airport is well connected to     ►    The nearest port is Hazira which is 25 km
      various parts of the country. The city is            from Surat.
      located ~275 kms from the international         ►    Additionally, Hazira port is well connected to
      airport at Ahmedabad.                                Mundra port and Jawaharlal Nehru Port Trust
                                                           (JNPT) – India’s largest container port
 Proposed                                             ►    Thus, it provides a convenient textiles-related
 ►  In January 2015, Airports Authority of India           trade gateway to International (Europe,
    gave an in-principle approval for cargo                Africa, America and the Middle East) and
    terminal at Surat airport worth INR70 million.         domestic markets.
    The terminal is expected to be operational in
    2017.
 ►  In February 2016, Surat Airport Action
    Committee filed an online petition for an
    international airport at Surat.

 Utilities
                Water                                             Power

►    Water for industrial purposes can be obtained
                                                       ►    The main source for the power supply is
     from four sources viz. Gujarat Water Supply
     and Sewerage Board (GWSSB), an irrigation              Torrent Power Limited in Surat
     canal, dams, and surface reservoirs.

Page 10
Project Information

Waste-to-Energy Plant technology options

1                                       Thermal Conversion

      ►   The process involves thermal degradation of waste under high temperature. In this
          complete oxidation of the waste occurs under high temperature.
      ►   The major technological option under this category is incineration.
      ►   Incineration comes with a number of benefits in specific areas like medical wastes and
          other life risking waste. In this process, toxins are destroyed when waste is treated with
          high temperature.

2                                  Thermo-chemical conversion

      ►   This process entails high temperature driven decomposition of organic matter to produce
          either heat energy or fuel oil or gas. They are useful for wastes containing high
          percentage of organic non-biodegradable matter and low moisture content.
      ►   The main technological options under this category include Pyrolysis and Gasification.
      ►   The products of these processes (producer gas, exhaust gases etc) can be used purely
          as heat energy or further processed chemically, to produce a range of end products.

3                                    Bio-chemical conversion

      ►   This process is based on enzymatic decomposition of organic matter by microbial action
          to produce methane gas, and alcohol etc. This process, on the other hand, is preferred
          for wastes having high percentage of organic, bio-degradable (putrescible) matter and
          high level of moisture/ water content, which aids microbial activity.
      ►   The major technological options under this category are anaerobic digestion (bio-
          methanation) and fermentation.
      ►   Of the two, anaerobic digestion is the most frequently used method for waste to energy,
          and fermentation is emerging.

4                                  Electrochemical conversion

      ►   Electrochemical conversion in the context of waste to energy refers typically to microbial
          fuel cells (MFC). These systems are developed to trap the energy from wastes, where the
          reduction-oxidation machinery of immobilized microbial cells is catalytically exploited, for
          the accelerated transfer of electrons from organic wastes, to generate electricity and bio-
          hydrogen gas.
      ►   However this methodology needs extensive evaluation studies on bulk scale liquid waste
          treatments and stands at a nascent level in India as well as worldwide.

Page 11
Project Information

 Key Components

 ►   Bunker                                      ►   Economiser
 ►   Waste crane                                 ►   Condenser
 ►   Hopper/feed chute                           ►   Turbine
 ►   Feeder ram                                  ►   Generator
 ►   Grate                                       ►   Reactor for acid gas absorption
 ►   Bottom ash discharger                       ►   Bag house filter
 ►   Furnace                                     ►   ID fan
 ►   Afterburning chamber                        ►   Stack
 ►   Radiation part                              ►   Boiler ash conveying system
 ►   Convection part                             ►   Ash/residue silo
 ►   Flue gas cleaning residue
     transport system

Manpower Requirement

     Particulars           Skilled   Unskilled         Supervisors            Total
                           Labour    Labour
 Construction                    7        60                 5                 72
 Phase
 Operational Phase           58           19                 6                 83

Page 12
Project Information

 Implementation schedule
          It is estimated that it takes 6-7 months for the implementation of the project. The
          implementation model includes below nine steps –

                              Implementation schedule

      1                Selection of site                               One month

      2         Preparation of project profile                         Two weeks

                 Registration of the unit with
      3                                                                 Two days
                  Directorate of Industries

      4      NOC from Pollution Control Board                          One week

              Calling quotation and preparation
      5            of detailed project report
                                                                       One month

      6        Approach to commercial bank                             One month

              Installation and electrification of
      7                                                                One month
                 machinery and equipment

      8              Recruitment of staff                              One month

                Arrangement with municipal                             One month
      9      corporation and third-party buyers

Page 13
Project Information

                             India Leading Players
                       Corporate
      Company                                              Highlight
                         office

A2Z Group of                       RDF based combustion technology with scope for
                      Gurgaon
Companies                          cogeneration of heat and power.

                                   SELCO setup the first commercial Municipal Solid Waste-
SELCO International
                      Hyderabad    processing unit in India in 1999. Have installed 6.6 MW
Limited
                                   using RDF pellets as energy source.

East Delhi Waste
                                   Implementing 10 MW incineration power plant with MSW
Processing Company    New Delhi
                                   derived RDF pellets as fuel.
Pvt Ltd

Mailhem Engineers                  Has adopted modified UASB technology. Has installed
                      Pune
Pvt Ltd.                           about 250 waste-to-energy plants.

                                   Undertaking comprehensive biomethanation projects
Ramky Enviro                       coupled to secure composting and landfills. Also involved
                      Hyderabad
Engineers Ltd                      in incineration and presently operating India's largest
                                   waste incinerator at Taloja, Maharashtra.

Page 14
Project Information

 Key Considerations
►      Waste to Energy (WtE) includes a number of different technologies for waste treatment with
       energy recovery, like incineration, gasification and pyrolysis. The different choices of the
       components in the plant should be chosen with help from experts from WtE project managing
       companies.
►      Capital costs vary significantly as a function of the selected processes for the treatment of
       flue gases and other produced residues. Operation and maintenance costs have a lower
       impact on the total expenses of the facility.
►      To ensure a complete combustion of the waste, the plant must follow regulations concerning
       operating conditions.
►      The temperature inside the incinerators should be constantly maintained at 800Ԩ or more to
       limit the generation of dioxins.
►      MSW has to be checked with respect to its calorific value and suitability. Seasonal changes
       shall also be taken into consideration as well as religious traditions which may have
       implications to the calorific value of the waste.
►      A change in government policy can impact the project finances negatively if the plant is over-
       dependent on government subsidies.
►      Considerations regarding the organisational setup must be made in early stages as it affects
       location, ownership, financing, design/construction and operation.
►      Considerations such as existing transportation possibilities, point of waste generation and
       energy consumers are key factors when defining the location of the facility.
►      A survey should be done among the waste producers to determine their capability to pay
       increased disposal fees as compared to the “tipping fee” charged by landfills.
►      The most important economic difference between WtE technologies and other combustion-
       based energy generation units is related to the nature of the input fuel. Waste has a negative
       price, which is regulated by prefixed gate-fees, and is usually considered as the main source
       of income for the WtE plant owners.

 Potential Collaboration
 ►   Indian players can collaborate with international players (such as Zurich-headquartered Hitachi
     Zosen Inova (HZI), providing technology solutions globally for waste-to-energy projects).
 ►   Potential collaboration can also be done with major equipment players with established
     operations in India (such as Siemens Energy in India, that produces world-class equipment for
     Waste-to-Energy plants).

Page 15
Project Information

 Cost structure of Waste-to-Energy Plant in Surat, Gujarat
 The project cost for the proposed WtE plant of capacity 700 TPD based on the estimated unit cost
 which includes all machineries, erection charges, civil works etc.

                       Waste-to-Energy Plant – Capacity 700 TPD

      Equipment/Components                         Units                Total Price (INR)
Screw Conveyor                                       2
Blender System                                       2
Recycle Pump                                         4
                                                                    Approximate cost for all the
Vacuum Pump                                          4
                                                                        equipment/ study is
Feed Pump                                            3              estimated to be around INR
                                                                            710 million
Biogas Flare                                         1
Disposal Pump                                        2
Screw Press                                          2
Rotary Screen                                        1
Hot Air Blower                                       6
Poly Dosing Pumps                                    2
Shredder                                             1

                                   Total Capital Investment

                    Description                                    Total Price (INR)
Equipment Cost/ Engineering cost                                      71,00,00,000

Land lease rent & development                                         28,00,00,000
(242811 sq.m x 36.00x100)

                         Total                                        99,00,00,000

 The above estimates are derived from similar projects executed in India. The
 total price can vary based on plant size and need of additional equipment.

Page 16
Approvals & Incentives

                                    Approvals Required
 ►   Industrial approval: Secretariat For Industrial Assistance (SIA), New Delhi, District Industries
     Centre (DIC) of the district, where the facility is to be located.
 ►   Land for project: Allotment of plot/shed in the industrial estate from GIDC or any other state
     controlled organization.
 ►   Environment clearance: “No Objection Certificate” from the Gujarat Pollution Control Board,
     Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF), Consent and
     Authorization from GPCB on meeting requirement for effluent disposal of by products wastes
     etc.
 ►   Construction of building: Surat Municipal Corporation and GIDC to provide plan approval for
     industrial estate.
 ►   Emissions and Ash Disposal: Authorization and approval for the same from Surat Municipal
     Corporation for proper treatment and discharge of waste.
 ►   Fire and Health License: A fire license is required by local governing body like Surat Municipal
     Corporation to prove that plant will not cause any damage or loss to life. Health license is
     provided by both state and central government agencies.

                          Incentives by Government of Gujarat

 ►   To support the waste-to-energy production, the Government of Gujarat has introduced Waste
     to Energy Policy – 2016 (valid until 2021) that aims to provide a boost this sector. Under this
     policy:
     ►   Urban Local Bodies (ULBs) and Municipal Corporations will provide land at a token rent of
         Re. 1 per annum for the project.
     ►   ULBs/ Municipal Corporations will not charge any tax, cess, royalty, levies, stamp duty, land
         allotment charges to the Project Developer.
     ►   The end use of the electricity produced is guaranteed by the government. The electricity will
         be either for captive use or for sale to power obligated entities/ third party.
     ►   The electricity produced will be duty exempted and there will also be exemption from
         demand cut.

Page 17
Gujarat Pollution Control Board (GPCB)
                                    http://gpcb.gov.in

                             Energy and Petrochemicals Department
                                    http://guj-epd.gov.in/

                              Gujarat Energy Development Agency
                                   http://geda.gujarat.gov.in/

                       Urban Development & Urban Housing Department
                                   https://www.udd.gujarat.gov.in

                       Gujarat Urban Development Company Ltd (GUDC )
                                        http://www.gudcltd.com

                         Gujarat Urban Development Mission (GUDM )
                                         http://www.gudm.org/

                           Industries and Mines Department, Gujarat
                                      www.imd-gujarat.gov.in/
                             iNDEXTb - Industrial Extension Bureau
                                        www.indextb.com
                                   Surat Municipal Corporation
                                   https://www.suratmunicipal.gov.in/

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a
  prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before
                                  taking a final investment decision.

                                                         Block No.6, 5th Floor,
                                                         Udhyog Bhavan, Sector No. - 11,
                                                         Gandhinagar - 382 017.
                                                         CIN             : U75140GJ1999SGC036051
                                                         Telefax         : +91 - 079 - 23246127 / 128, 23241865 / 66
                                                         Fax Exten.      : 231
                                                         Email           : contact@gudcltd.com
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