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THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
November 2013 – New Delhi
Realizing 300MT – Challenges Ahead
Ministry of SteelGovernment of India
Ministry of CoalGovernment of India
Ministry of MinesGovernment of India
The Associated Chambers of Commerce and Industry of India
ASSOCHAM Corporate Office:5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009
Email: [email protected] • Website: www.assocham.org/7steel
November 2013 – New Delhi
A Background Note ..............................................................1
Mukesh Kumar, Design Engineer
U. K. Vishwakarma, Dy. General Manager
S. Torka, Director (Engineering) MECON Ltd., Ranchi
Continuous Casting: Get more from your Caster .................24
Axcend Automation & Software Solutions
Issues In Pelletization Technology .....................................30
Bikash Roy Choudhury
Chief Executive Officer, Adhunik Corporation Limited
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Abstract
The Indian steel industry continues to hold the center stage in the economic policy
of the country. In the existing fluid ecosystem comprising economic, social,
environmental and political forces which are mutually inter-dependent and share a
functional relation, forecast and an assessment of the future trends in this critical
constituent of economy has become imperative. In line with this objective an ambitious
target for achieving crude steel capacity of 300 Million Ton by the middle of next
decade has been envisaged in the National Steel Policy-2012(draft).
Present paper covers a realistic diagnosis of various determinants for achieving this
target by 2025-26 and presents a comprehensive picture succinctly covering the “matrix
of contradictions” viz., Raw material security and abundant raw material availability,
environmental commitments and existing resources in ecologically sensitive zones,
HRD/manpower issues and Demographic dividend, land acquisition’s social dimension
and geographic-market dimension and existing outdated technology vis-a-vis new
promising technologies and R&D issues.
The follow up concludes with the proposition of Special Purpose Vehicle (SPV) and
Ultra Mega Steel Projects (UMSPs) as the potential instruments for institutional
metamorphosis of the “matrix of contradictions” into growth opportunities in achieving
the desired ends.
1.0 Background
The geopolitical landscape today is undergoing a renewed and accelerated transition.
This rapidly evolving transition is clearly visible in terms of influential increment in the
bargaining power of the developing economies in the globalised market. This has created
a number of challenges and opportunities. The globalization of standards coupled with
the presence of internal vulnerabilities, magnified by the “existing outdated-and-now-
turned-amorphous institutions”, harvesting systemic deficiencies has become the most
Mukesh Kumar, Design Engineer • U. K. Vishwakarma, Dy. General Manager
S. Torka, Director (Engineering) MECON Ltd., Ranchi
A background note
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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critical challenge for the country. To benefit most from the developments across the
planet, there is an urgent need for reshaping the present economic paradigm in the
country, which, however, can be considered to be organically integrated with the global
geopolitical and economic paradigms.
It is largely being felt now that manufacturing has to be the backbone of future growth
strategy of India over the next decade. Accordingly, the new manufacturing policy aims
at increasing manufacturing growth rate to 11-12% by 2016-17 and raising its share
in GDP from current 16% to 25% by 2025. The policy envisages creation of National
Manufacturing Investment Zones (NMIZs) equipped with world class infrastructure
facilities to promote manufacturing activities in the country. Foremost to the process of
achieving economic maturity is the steel sectoral output and growth. As such, some of
the NMIZs are being planned in mineral rich states which may offer excellent potential
location for setting up new steel plants. Draft National Steel Policy 2012 also targets
crude steel capacity of 300 Mt in the country by the middle of the next decade (2025-
26). Recently, a High Level Committee on Manufacturing (HLCM) in its meeting held
on 9th July 2013 which was chaired by Hon’ble Prime Minister endorsed the growth
strategy targeting National Mission of 300 Mt crude steel output by the middle of the
next decade.
To accomplish such an optimistic milestone figure, revisiting the present economic
arrangement and by extension the steel sectoral configurations is essential. This calls
for comprehensive introspection into the challenges concerning the Indian steel industry
and reinforcing our collective efforts towards exploring innovative solutions.
2.0 Global & Indian Steel Scenario
The global steel industry has witnessed significant structural change over the last
decade characterized by emergence of China as world leader. Significant changes
are shifting of production and demand from the advanced to the developing world,
seamless flow of steel across the globe through foreign trade, consolidation at local,
regional and global levels. World crude steel production increased from 905 Mt in
2002 to 1547 Mt in 2012 registering a compounded annual growth rate (CAGR) of
5.51%. Global finished steel consumption increased from 822 Mt in 2002 to 1413 Mt
in 2012 registering 5.57% CAGR. The share of China in global steel production and
consumption increased significantly from 20-23% in 2002 to around 46% in 2012.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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The share of advanced economies like EU-27, NAFTA region, Japan etc. has shrunk
during this period.
About 30-35% of steel products are traded globally as evident from the following
table.
(Mt)
Items 2008 2009 2010 2011 2012
Global production 1246.7 1151.5 1334.3 1432.4 1443.9
Exports 436.6 327.3 388.8 416.6 414
Exports as % of global production 35 28.4 29.1 29.1 28.7
Source : World Steel Association
Indian steel industry growth was fueled by entry of private players in the post-
liberalization era. Share of private sector in crude steel production increased from 37%
in 1992-93 to over 75% to-day. In 2012-13, crude steel production stood at 78.31 Mt
and domestic real steel consumption was 73.33 Mt. India has become net importer of
steel due to higher growth in domestic demand vis-à-vis domestic availability especially
of some special & value-added products like auto grade steel, electrical steel (CRGO/
CRNO), special grade boiler quality plates, API grade large dia pipes, etc.
India has occupied the 4th rank in the world in terms of crude steel production
lagging behind only China, USA and Japan. The country has remained world’s largest
producer of Sponge Iron for many years and expected to emerge as the 2nd largest
producer of steel in the world in near future, next only to China. The present dynamic
position of the country has strengthened its capability to achieve the sharpest steel
output growth trajectory in the years ahead. However, the per capita steel use in
India is still very low at 57 kg against world average of 216 kg as evident in the
following table:
(kg per capita)
EU-27 CIS NAFTAMiddle
EastChina Japan India
Global
Average
278.8 218.2 281.1 221.9 477.4 506 56.9 216.3
Source : World Steel Association (Data for Year 2012)
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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3.0 Future Outlook for Global & Indian Steel Industry
Future outlook for global as well as Indian steel industry are summarized as follows :
(Mt)
Sl No Items 2012 2025 CAGR (2012-25), % pa
1Global crude steel
production1547 2115 2.4
2 Crude steel - India
aAs per Draft National Steel
Policy 201278
233*
(300**)8.8
b As per World Steel Dynamics 78 170 6.2
* Finished steel by 2025-26 considering CAGR @8.8% corresponding to GDP growth @8% pa.
** Crude steel capacity target by 2025-26 as per Draft National Steel Policy 2012.
4.0 Regional concentration of steel capacities by 2025-26
As per NSP 2012 (Draft), regional concentration of steel capacities by 2025-26 is likely
to be as follows :
Sl No States Likely steel capacity by 2025-26 (%)
1 Odisha 25
2 Chhattisgarh 13
3 Jharkhand 14
4 Karnataka 9
5 West Bengal 7
6Others (Andhra Pradesh,
Maharashtra, Goa etc)32
Total 100
5.0 Process route mix of steel capacities by 2025-26
The process route-mix of steel capacities by 2025-26 is expected to be dominated by BOF
route with significant share of 67%, followed by EAF route (28%) and IF route (5%).
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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6.0 Requirement of Inputs & Infrastructure
In order to achieve 300 Mt crude steel output in the country by 2025-26, the annual
requirement of inputs and infrastructure requirement have been estimated as
follows:
Sl No Items Unit Quantity
A Annual requirement of inputs
1 Iron ore Mt 490
2 Coking coal Mt 170
3 Non-coking coal for DRI / PCI Mt 140
4 Steel scrap (for IF based units) Mt 20
5 Limestone & dolomite Mt 110
BInfrastructure requirement for additional steel
capacity by 2025-26
1 Land Acres 1,26,000
2 Water Million m3 1,100
3 Power MW 22,000
4 Steel related railway traffic Mtpa 800
5 Steel related port traffic Mtpa 300
NB : Land requirement @500-600 acres per Mt. Power requirement @100 MW per Mt. Water requirement
@5 m3/tcs although NSP-2012 (draft) aims @2 m3/tcs by 2025-26.
7.0 Key Issues & Suggested Strategies
Key issues alongwith suggested strategies for accomplishing the National Mission of
achieving 300 Mt steel output by the middle of the next decade are elaborated in
subsequent sections.
7.1 Marketability of Steel Products – Indian Perspective
The potential drivers of demand for the steel products in India are transport (16%),
construction (50%) and Capital & Consumer goods (34%). The following factors are
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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expected to help increasing intensity of steel use in the country :
a) Realization of massive investment in infrastructure (1 trillion dollar) as envisaged
in 12th Five Year Plan especially in dedicated freight corridor, metro/mono rail,
bridges, flyovers, ports etc.
b) Anticipated growth in power and oil & gas sectors.
c) Implementation of national manufacturing policy aimed at increasing manufacturing
growth rate to 11-12% by 2016-17 and raising its share in GDP from current
16% to 25% by 2025. The policy envisages creation of National Manufacturing
Investment Zones (NMIZs) equipped with world class infrastructure to promote
manufacturing activities in the country.
d) Trend towards higher urbanization rates, rising middle class population with
enhanced purchasing power for automobiles, white goods & other consumer non-
durables.
e) Thrust on tapping latent demand potential in rural market through investment
in housing & social infrastructure, product customization by leveraging “frugal
engineering concept”, strengthening product distribution chain / retail outlet
network, promotion of entrepreneurial skill among rural populace as well as
raising income / purchasing power of rural populace through pick up in agricultural
growth / higher procurement prices for agricultural products, financial inclusion
and efficient & effective implementation of various social welfare schemes like
MGNREGS.
f) Rising consumption in the retail sector.
g) Policy thrust for the country to emerge as Net Exporter through developing export
market targeting Latin America, Africa and ASEAN region.
7.2 Raw material security
The indigenous resource position of iron ore (as on 1.4.2010) at 55% Fe cut-off is
furnished as follows :
(Mt)
Sl No Item Reserves Remaining resources Total Grand Total
1 Haematite 8094 9788 17882 28526
2 Magnetite 22 10622 10644
Source : IBM, 2010
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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If steel output in the country ramps up to reach 300 Mt by 2025-26, the Hematite reserves
can last only for 6-7 years beyond 2025. The threshold / cut-off grade for haematite
ore has been lowered from 55% to 45%. The fines generation is now increasing in
Indian mines. The country witnessed large scale export (54% in 2009-10) of iron ore in
the past causing environmental degradation and illegal mining. In view to conserve the
ore for future value-addition within country, exports have been discouraged through
imposition of 30% export duty and differential rail freight mechanism.
There is need for resource augmentation through intensive & deeper exploration
(>60 m depth & Fe cut-off<50%) and resource conservation through beneficiation /
agglomeration / pelletization of increasing quantum of low grade fines & slimes for use
in iron making. Indian iron ore has high alumina content and techno-economically viable
beneficiation technology would need to be developed. To meet the increasing demand
for iron ore, systematic developmental efforts need to be undertaken including creation
of additional mining capacity, encouraging investment, issuance of environmental &
forest clearances within specified time frame, grant and renew leases against credible
mining plans and grant of fresh leases only against new norms that are in place for
assessment of technical and financial capabilities of applicants. Preference should be
given to value adders in allocation of mineral concessions. In wake of fast depleting
haematite ore, magnetite ore resources locked in western ghat of Karnataka has to
be tapped through techno-economic viable underground mining technique (requires
huge investment) without disturbing the ecology in the region. Further there is need
for phased reduction in export of iron ore to moderate levels, strengthening of mine
related infrastructure as well as strategic initiative for acquisition of overseas iron ore
deposits.
Coking coal reserve in India is 33.68 Bt (1.4.2011) including 17.93 Bt under proved
category, prime coking coal being only 4.6 Bt. Indian coking coal has high ash and
80% of coking coal requirement of Indian steel sector is met through import which
will further increase due to a number of new projects being planned based on BF-BOF
route. Price volatility in international market has sharply eroded competitive position
of Indian steel makers. Capability developing to beneficiate low grade coking coal
with improved yield should be aimed through installing new washeries with state-
of-the-art technology / expertise available internationally. There should be intensive
exploration for prime coking coal (beyond 300 m) as well as exploitation of deep
seated coking coal reserves through suitable underground technology. There should
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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be phased deregulation of coal sector and demerger of CIL’s coking coal mines to be
offered to steel producers on competitive terms. Govt. would need to ensure speedy
implementation of Jharia Action Plan for exploitation of prime coking coal. Despite
growing domestic market and rising import dependence, production from captive coal
mines has remained below potential due to delays in regulatory clearances and land
acquisition. A well defined process with prescribed time frame for statutory clearance
needs to be developed. Strategic acquisition of coal assets overseas is being successfully
done by some private steel companies. Ministry of Steel has set up a Special Purpose
Vehicle, International Coal Venture Ltd (ICVL) with participation of CIL, SAIL, NTPC,
RINL and NMDC for this purpose. PSUs are also independently scouting for coal assets
abroad. Bilateral negotiations with respective Governments may also strengthen the
success potential of Indian Companies in this direction. Non-coking coal reserve in
India is 258 Bt (1.4.2011) – 100 Bt is of proved category. These also have high ash and
being imported in limited way by sponge iron producers. There is need for long term
fuel supply agreement between coal companies and steel / sponge iron producers.
The indigenous resource position of limestone & dolomite is as follows :
(Mt)
Sl No Items
Limestone Dolomite
ReservesRemaining
resourcesReserves
Remaining
resources
1 BF grade 930 12270 317 1672
2 SMS grade 219 1231 271 1700
Source : IBM, 2010
SMS grade reserves are confined in Rajasthan involving high incidence of transportation
cost. Domestic reserves of SMS grade fluxes are limited and steel plants are also
importing SMS grade limestone from Middle East region. Government would need to
strictly ensure supply of SMS grade limestone to steel units without any diversion to
cement units. Strategic acquisition of SMS grade limestone deposits in Middle East may
also be explored by Indian steel companies.
7.3 Technology, Environment Management and R&D
The Indian steel making technology is broadly categorized into three groups BOF (45%
share), EAF (24% share) and EIF (31% share). Indian steel industry is characterized
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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by a mix of old and new technologies together with integrated and stand-alone mills.
But the overall techno-economic performance of Indian steel industry is below global
benchmarks mainly due to poor quality of raw materials/inputs, prevalence of obsolete
technology and lack of R&D to overcome the technological gaps. Indian steel industry
would need to adopt modern commercially available relevant technologies to achieve
globally comparable business and product performance, partner with world leaders to
acquire state-of-the-art technologies and process know-how, promote new technology
in association with renowned equipment supplier / technology provider and develop
new technologies / process / product through own research.
The draft National Steel Policy has outlined growth strategy for the Indian steel industry
through sustainable development and set stringent strategic goals for the Indian steel
sector as outlined below :
Parameters Unit ExistingStrategic goal
by 2025-26
Specific energy consumption G cal 6.3 4.5
CO2 emissions t/tcs 2.5 2.0
Material efficiency % 93.5 98.0
Sp.make-up water consumption
(works excl. power plant)m3/tcs 3.3 2.0
Utilization of BOF slag % 30 100
Share of continuously cast
production% 70 95
Blast furnace productivity t/m3/day 1.9 2.8
BOF productivityNo of heat/
convertor/day7800 12000
R&D expenditure as % of
turnover% 0.2 1.5
Indian steel industy would need to adopt measures like beneficiation of iron ore & coal
and increasing use of agglomerated burden in blast furnaces. Technological innovations
like stamp charging & partial briquetting of coal charge (PBCC), tall ovens/batteries,
leak proof doors, coke dry quenching (CDQ) etc may be considered for extensive
adoption for enhancing productivity, improving quality and reducing pollution. SCOPE
21, a revolutionary coke production process, which is being developed by Nippon Steel,
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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is expected to reduce energy consumption significantly and also boost production
efficiency.
In blast furnace, improvement in performance efficiency / consistency in hot metal
quality / reduction in coke rate can be achieved through increasing the share of
prepared burden feed (sinter, pellets, DRI & other metallics), incorporating technologies
for injecting pulverized coal, top gas recovery turbine, use of waste heat stove gas for
preheating of gas, high efficiency stoves, introducing copper staves, silicon carbide or
other improved refractory system in high heat load areas, revamping/conveyorisation
of stock house and screening efficiency of ore, sinter & coke, strengthening stoves
capacity, increasing blast volume & flow rate, increasing oxygen enrichment of blast &
hot blast temperatures, application of close circuit water for better cooling efficiency,
increasing the inner useful volume by the use superior quality refractories, augmentation
of cast house facilities including powerful mud gun & drilling machines and installation
of latest instrumentation, automation & control systems for improved process control.
Large size Blast furnaces with the state- of –the- art facilities offer better productivity,
consumption norms and hot metal quality. With installation of such furnaces in future,
the need for agglomerated burden is likely to increase. Improvement in burden quality
will facilitate higher PCI injection rates and thereby reduction in metallurgical coke
requirement and overall fuel rate.
Non-coking coal gasification by the well established coal gasification (Lurgi Technology)
and use of synthesis gas thus generated (in lieu of natural gas) as reductant in vertical
shaft furnace to produce gas based DRI would need to be encouraged to mitigate the
problem of non availability of natural gas.
Indian steel industry has to achieve sustainable development through adoption of
green / energy efficient technologies. FINEX, ITmK3, FASTMELT, HISMELT etc are some
of the promising emerging green / smelting reduction technologies based on use of
iron ore fines / non-coking coal. These technologies have eliminated coke making
and agglomeration facilities. Their adoption will help in reducing dependence on iron
ore lumps/imported coking coal and will also help in reducing harmful emissions. The
relevance of these technologies has to be carefully assessed for compatibility in the
Indian context.
Over the years, energy intensity in integrated steel plants has been brought down
substantially by improvements in raw material quality, processes and operational
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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practices to current level of 6.0-6.7 Gcal/tcs. This is still higher than the 4.5-5.5 Gcal/
tcs levels achieved by steel plants in other countries. The specific emissions of air
pollutants like dust, SOx NOx in some Indian steel plants are still above 1.0 kg per
ton of steel as compared to less than 0.5 kg per ton of steel in developed countries.
A substantial reduction in specific air emissions may be possible with introduction of
larger capacity units like sinter plants, blast furnaces, taller coke ovens, increased size
of steel converter etc.
Over the years, fresh water consumption for steel production has been brought down
from 12-15m3/tcs to less than 5 m3/tcs, with some integrated steel plants consuming
less than 3.0 m3/tcs. Water being a scarce resource, Ministry of Environment & Forests
(MoEF) has emphasized on zero water discharge from industries, which may require
innovative solutions for effectively recycling treated wastewater.
Due to high impurity levels in the raw material, currently volume of solid wastes generated
in Indian steel plants is relatively high at 600-800 kg per ton of steel as compared to
400-500 kg in developed countries. The steel industry has been successfully converting
these wastes into useful byproducts for recycling or else for use as a raw material in
other industries. For an effective environmental management in the steel sector, the
thrust areas identified for implementation in 12th Plan include 100% usage of BOF
& EAF slag by introduction of a product standard, reduction of fresh water usage to
less than 4.0 m3/tcs in integrated steel plants and work towards achieving zero water
discharge, 100% recycling of wastes to achieve zero wastes generation, reduction of
process dust emissions to less than 1.0 kg/tcs, staged combustion in burners to reduce
NOx emissions, online monitoring of stacks in all plants and introduction of EMS (ISO-
14001) in all sectors of steel making.
In the past few decades, Climate change has assumed high place on the global
development discourse. The global commitments and high vulnerability of steel
sector to the climate change has brought steel sector in the global spotlight. The
steel sectoral CO2 emissions are projected as 450 million tonnes by 2020 (12th FY
Plan working group). It is felt that even after implementing energy conservation &
efficiency improvement projects, the anticipated CO2 reduction from the steel sector
will still be higher. Thus there is a need to explore technologies like carbon capture
& sequestration (CCS) and new routes to carbon free steel making technologies by
leveraging soft financing advanced by the developed economies. Further installation
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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of new technologies with higher capacities would contribute towards higher level of
energy & environmental efficiency. There is need for “Carrying capacity” approach in
the land use for the steel plant, since over-burdening of the land use through steel
plant clusters causes serious environmental damage. Voluntary initiatives like corporate
responsibility for environmental protection would also contribute immensely in this
direction. There is also need to promote specialized training for environmental capacity
building, renewable energy generation and altering the incentive structure in favour of
zero waste generation and recycling of process wastes like dust, slag etc.
There is a need to develop good design, engineering and manufacturing facilities in
the country to mitigate long term dependence on imports of state-of-the-art facilities/
equipment at phenomenal cost. This can be achieved through development of
manufacturing centers by pooling of resources by steel companies through MOU with
Government providing necessary incentives/subsidy. Steel companies may associate
with reputed equipment suppliers to promote new process development. Leading
equipment manufacturers may also be encouraged to put their manufacturing base in
India.
Investment in R & D in Indian steel industry has been very low in the range of 0.15-
0.25% of the sales turnover. Until recently, the R & D activity in India has been carried
out by National Research Laboratories / Academic Institutions and to a limited extent by
the industry itself. The international developments in research have benefited the large
steel producers and its benefits yet to be reaped by small steel producers. There is need
to leverage Government grant for R & D through PPP mode to enhance R&D investment
from the existing 0.15-0.25% of sales turnover to 1% by 2015-16 and 1.5-2% by 2025.
R & D thrust in the Indian steel sector has to be in areas like environment management,
energy efficiency, GHG reduction, beneficiation / agglomeration / SR technologies for
optimum utilization of indigenous natural resources, product development for defence,
space research & nuclear energy, optimum land use in Greenfield projects etc. There
is also need to develop indigenous capability for import substitution for special grade
/ value-added products like auto grade steel (dual phase, TRIP, AHSS, Ultra Fine Grain
Steel, Nano Steel), electrical steel (CRGO/high grade CRNO), special grade boiler quality
plates, API grade large dia pipes and special grades of eco-friendly pre-fabricated
steel structures for high rise buildings / urban infrastructure etc. To a large extent the
above issues can be addressed, if the few existing Research centres are developed
into “Centres of Excellence” by joint funding between Industry and Government under
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Private – Public partnership. Steel Technology Centres would need to be created
under PPP model in industrial sites for promoting market driven translational research
customized for steel industry.
7.4 Infrastructure
Land
Land footprint by steel companies has undergone a sea change over last 3-4 decades
in India improving from around 4000 ha/Mt of crude steel capacity in 70s/80s to
present range of 900-1500 ha/Mt. Further, it is expected that with improved land use
plan, the footprint would reduce to the level of 200 ha/Mt by 2025. For Greenfield
projects 40,000 hectares of land is required for 300 Mt crude steel target. Additionally
10,000 ha would be required to store tailings generated at the mines (estimated as
400 Mt). This high quantum of land required for the steel projects can be a social
challenge and should be viewed in a broad socio-economic paradigm. Involvement of
multiple agencies, leakages during the R&R process/stage, delays in compensations
which sometimes remain low, parochial political ambitions of local leaders and so on
and so forth can be identified as potential reasons for delay in land acquisition and
settlement of R & R issues.
Suggested measures include online single e-window for transparent transactions
involving multiple government agencies, consolidation of land acquisition Act with
the R&R act, widening the ambit of project affected families to include those whose
livelihoods are lost due to land acquisition, land auction and devising suitable
institutional mechanisms to resolve conflicts among various stakeholders. The
recently passed the right to fair compensation and transparency in Land acquisition,
resettlement and rehabilitation Act , 2013 is a big milestone in this direction. Above
all, land acquisition has all the social, political and environmental dimensions and
requires initiatives and collaborative sensitivities of Government and industry.
Further, industry would need to devise optimum land use plan such as compact
layout, optimization of material flow, covered raw material storage and selection of
large size units. Moreover, steel clusters may be promoted for small / medium units
with common infrastructure on consortium approach for optimal land use / economies
of scale. Government would need to provide fiscal / administrative help for shared
infrastructure in the steel cluster.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Water
As per UN estimate, total amount of water on earth is 1400 million BCM of which only
2.7% is fresh water mostly trapped in frozen poles (75.2%) / available as ground water
(22.6%). Rest are available in lakes, rivers, atmosphere, moisture, soil & vegetation.
Most of the water is not available for use and characterized by highly uneven spatial
distribution. India has over 17% of world population but only 4% of world’s renewable
water resources and 2.6% of world’s land area. India receives an average annual
precipitation of 4000 BCM. After natural evaporation-transpiration, only 1869 BCM is
average annual natural flow through rivers & aquifers. Of this, only about 1123 BCM
is utilizable, if large inter-basin transfers are not considered. Total catchment area for
medium river basins of India is 2,48,505 sq. km. Total annual replenishable ground
water reserves of India is placed at 431 BCM. After natural discharge of 35 BCM, net
ground water availability in the country is 396 BCM. Annual ground water draft is
reported as 243 BCM of which only 22 BCM is for domestic & industrial use. National
Water Board has projected the water demand for domestic & industrial uses upto 2025
to be 29 BCM.
With technological advancement and improvement in the operating regime, Indian steel
industry has been able to achieve significant reduction in specific water consumption
over past many years as evident from the following table :
(m3/tcs)
Sl No Items 70s/80s Present2025 (draft
NSP)
1Specific water consumption
(overall)12-15 6-8 -
2Specific water consumption
(without power plant)6-7 3.5-5 2
Steel sector share in total water consumption in the country is around 5%. There are
large surface water sources / river basins in iron ore rich states of Odisha, Jharkhand
and Chhattisgarh. These states account for 10% ground water reserves in the country.
In order to resolve water related conflict, there is need for water sharing agreement and
monitoring water quality involving local community, steel units and State Government.
There should be water footprint mapping and rain water harvesting in steel units /
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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mining areas. There should be penalty / reward system to bridge the gap between
global best practice and Indian standard practice. Steel cluster & consortium approach
can also help in reducing overall water consumption due to economy of scale. Steel
units would also need to increasingly adopt water efficient processes & practices such
as dry coke quenching, dry gas cleaning plants for BF/BOF, zero water discharge (RO
process), recovery & recirculation in beneficiation circuit etc. National Water Board
has recommended differential water pricing based on economic principles subjected to
allocation.
Power
Total installed power generation capacity in the country is 2,25,793 MW as on 30.6.2013.
Generation in 2012-13 was 911.6 BU with overall PLF reported to be 70%. The deficit
in availability vis-à-vis demand was around 8.7% in 2012-13, the corresponding peak
deficit being 9%. As per working group on power for 12th FYP, the energy requirement
by the terminal years of 12th Plan (2016-17) and 13th Plan (2021-22) would be
1403 BU and 1993 BU respectively, corresponding peak load being 197686 MW and
289667 MW respectively. The working group on power envisaged capacity addition
requirement of 75,785 MW during 12th FYP besides grid interactive renewable capacity
addition of 18,500 MW and 1200 MW import from Bhutan. However, to bridge the gap
between peak demand & peak deficit and accommodate faster retirement of old energy
efficient plants the target capacity addition for 12th FYP is fixed at 88,537 MW besides
capacity addition of 30,000 MW through MNRE. Further, capacity addition requirement
during 13th Plan (2017-18 to 2021-22) is projected to be 93,400 MW in addition to
MNRE projected grid interactive renewable capacity addition of 30,500 MW. If these
national goals are realized in time, there should not be any constraint related to power
generation.
The steel intensive states of Odisha, Jharkhand, Chhattisgarh and Karnataka are
presently surplus in power generation. However, peak power / energy deficits are
faced due to obligations of these states to export power. Large integrated steel plants
generally envisage captive power plants to meet their needs. However, small and
medium steel units have high dependence on grid power. Government would need
to ensure assured power supply to these units through facilitating strengthening
of power generation, transmission & distribution network / national grid. Moreover,
with increasing adoption of state-of-the-art energy efficient processes like coke dry
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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quenching, top recovery turbine in blast furnace, continuous casting and cutting edge
rolling technologies, the existing / future steel units can achieve substantial reduction
in power / energy consumption.
Railways & Roads
Railways have dominant share in total freight traffic generated by large steel plants
as compared to roads whereas the reverse is true in case of small & medium units as
evident from the following table :
(%)
Sl No ItemsRaw materials Finished products
Rail Road Rail Road
1 Mega steel projects / units 90 10 70 30
2Small & medium steel
projects / units25 75 25 75
3 Iron ore export 60 40 - -
Source : Railway 2025 Report
The inter-modal mix of freight in 2012 and projection by 2025 are furnished in the
table below :
Year
Total steel
related freight
turnover (Mt)
Freight Distribution
Rail RoadSlurry
Pipeline
2012 288 66% (190 Mt) 28% (81 Mt) 6% (17 Mt)
2025 1200 66% ((~800 Mt) 25% (300 Mt) 9% (~100 Mt)
NB : Import & export through ports considered based on port connectivity / transportation by rail & road.
It is projected that freight handling capacity of railways pertaining to steel sector
related freight by 2025 would be only 660 Mt vis-à-vis projected requirement of 800
Mt (corresponding to 300 Mt crude steel output), thereby creating a gap of 140 Mt
by 2025 which would need to be bridged. Railway Vision 2025 envisages upgradation
of axle load of tracks and development of wagons with higher payload to tare weight
ratio. Railway Vision 2020 has also laid stress on improving rail connectivity with
ports and incentivizing major customers / steel plants to invest in improvement in
efficient terminal handling system and share the efficiency gain accruing from reduced
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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wagon turnaround time. Other strategic measures include timely execution of railway
projects in iron ore mining areas, augmentation of railway infrastructure in Eastern &
Southern States where large steel capacities are being planned, developing dedicated
rail link between mines and plants through PPP mode and prioritize funding of projects
connected with Dedicated Freight Corridors. There is need for creation of mineral
development fund for development of infrastructure in mining belt. The Railways in
their Vision 2020 have envisaged mobilization of financial resources through internal
surpluses, borrowings, PPP route as well as creation of Accelerated Rail Development
Fund (ARDF).
Road infrastructure is vital for handling steel related freight for medium to small steel
units and distribution of steel products to far flung remote / rural areas. The three iron
ore rich states of Jharkhand, Odisha & Chhattisgarh have low density of poor quality road
network resulting in delays / material loss during transit and resultant high transaction
costs. Further there is inadequate network of state & district roads connecting mines
& plants to NHs in mining areas in Eastern Sector. Suggested strategies for road
infrastructure include strengthening road network in remote / distant rural areas for
distribution of finished steel and improving road connectivity with port & mines through
PPP mode of funding.
Slurry transportation
Slurry transportation of iron ore is a cost-effective and environmental friendly option
which can supplement rail / road infrastructure and help in reducing congestion in
transportation network in mining areas. Government may consider creation of nation-
wide slurry transportation highways and encourage investment through extending
fiscal incentives which are currently available to infrastructure sector.
Coastal transportation
Government may consider creating necessary infrastructure for coastal transportation
which may be relevant to plants located in coastal areas/adjoining hinterland for
transportation of imported coal and export of finished steel.
Port
There are 13 major ports and 176 non-major ports in India along its vast 7517 km long
coastal line. The existing & projected port traffic / capacities are furnished as follows :
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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(Mt)
ItemsPort Traffic Port Capacity
2012-13 2019-20 (P) 2012-13 2019-20 (P)
Major ports 546 1215 745 1460
Non-major
ports388 1280 455 1670
Total 934 2495 1200 3130
Source : Ministry / Maritime Agenda (2010-2020).
Port related traffic pertaining to 300 Mt steel output by 2025-26 is estimated to be
around 300 Mt. The Maritime Agenda (2010-2020) has set achieving port capacity
target of 3130 Mt by 2019-20, of which more than 50% to be created in non-major
ports. The objective is to bring Indian ports at par with best international ports in terms
of efficiency and associated transaction costs. Maritime Agenda also aims at developing
two new major ports (one each on east & west coast), full mechanization of cargo
handling / movement, deepening of port channels and identification / implementation
of rail/road/inland waterway connectivity to ports. Suggested strategies concerning port
infrastructure entail construction of deep draft berths to accommodate large vessels /
achieve economy of scale / enhance handling capacity at major port and achieve faster
evacuation through seamless port connectivity with multi-modal land transportation
(railways & roads) under PPP route collaborating amongst investors, State Govt. &
transport related service providing agencies.
7.5 Trade Policy Issues
The fading contours of global market necessitate the inclusion of trade related
concerns. Fixation of import tariff levels should be based on the considerations of
global oversupply/slow down in major steel nations, potential erosion in domestic cost
competitiveness due to price dynamics of raw material & energy, cost of capital &
infrastructure constraint. Level playing field should be ensured with trading partners
with mature steel industry for bilateral / regional trade agreements. Free/preferential
trade agreements (FTAs/PTAs) should factor global competitiveness / possible trade
distortion. The momentum of future growth would lie with Developing and Emerging
Economies which are expected to register higher growth rates. Aggressive export
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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strategy should be adopted to target markets in Africa, Latin America & Asia including
ASEAN member nations. Product diversification as per the needs of importing countries
and production of quality steel compatible with standards followed internationally
has to become an integral part of export strategy. Working out conducive trading
arrangements with trading partners holds a crucial place in the entire strategy of
export promotion. Export thrust should mitigate adverse impact on net forex earnings
by steel industry due to rising import of coking coal vis-à-vis gradual reduction in iron
ore export.
7.6 Human resource
There is dearth of quality manpower in manufacturing sector where salaries are lower
than the financial and other service sectors (IT/Management consultancy) and working
conditions are relatively onerous. Post liberalization, the steel industry recorded
voluminous growth in output in the backdrop of significant gains in labour productivity.
Improvements in Automation and IT infrastructure have resulted in qualitative shift in
workforce. Such developments have resulted in enhanced requirement of management
graduates, metallurgists, finance professionals etc. There is also dearth of faculty in
the field of metals/metallurgy as well as lack of appropriate facilities to carry out any
relevant research in Iron & Steel since the focus is now shifted to materials. There is
likely to be a shortage of core metallurgists which stems from the greater academia
focuses on materials than metals. This necessitates academic restructuring suited to
industrial needs and setting up of ‘Steel technology centers’ around the steel industry
corridors for faculty development. “Centre of Excellence” would need to be set up
under PPP mode for creation of R & D infrastructure, product development and human
resource development aimed at creating talent pool for research in the steel industry.
There is need to realign education system and corporate policies to attract, facilitate
and generate domain experts in the steel industry in India. The integration through
positive coordination and cooperation among academia, industry and Government is
crucial to fill the gulf created by growing industrial differentiation.
7.7 Project implementation
Substantial delay in green field steel capacity creation in the country is witnessed
in recent times. The delays are mainly caused by delay in clearances, delay in land
acquisition & resolving R & R conflicts as well as delay in linkages for minerals. There
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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is need for single e-window for submission of application and tracking of status
for grant of resources/clearances. Inter-ministerial Group (IMG) would need to be
empowered for conflict resolution / cut delay in project implementation. The New land
Acquisition Act, R&R policy & new provisions of proposed MMDR Act should also address
policy/procedural issues. There should be informed decision on site selection among
producer, project evaluator, local administration & service providers-railways, NHAI,
port authorities, MoEF etc for faster implementation of projects. The recent formation
of Cabinet Committee on Investment would help in speeding up project clearance /
execution.
7.8 Financial resources
SAIL Chairman has recently underscored that about 200 billion USD of financial
resources would be required for achieving the 300 Mt crude steel capacity by 2025-
26. Additionally investment would also be required in development of mines and other
related infrastructure facilities. Availability of such large quantum of investible funds at
reasonable costs will be a challenging task. FDI in steel sector has been lagging behind
despite massive investment intentions by major global players. In order to ensure
sufficient availability of financial resources for the growth of Indian steel industry, it
is imperative to review steel related sectoral caps of the banking sector. Government
may also consider easing of norms connected with external borrowings (ECBs). Due to
various reasons, implementation of steel projects generally takes a lot of time. Special
purpose long term financing facility viz. Steel Finance Corporation akin to Power Finance
Corporation (PFC) may be created to finance huge investment in new steel plants.
Initial corpus may be created by the Government with subsequent resource through
issuance of deep discount bonds. Development and adoption of new technologies
at a commercial scale is a high risk area. There is need to attract Risk / Venture
Capital in the steel sector for development of new & emerging technologies. Apart from
concessions such as duty free imports and Tax Holidays; innovative financing methods,
contribution to the equity by the Government and Technology Development Bonds
on the lines of infrastructure bonds are some of the other mechanisms which may be
explored for development/adoption of new technologies. Similarly, there is also a need
to attract Risk Capital in the area of exploration and prospecting of minerals. PPP mode
would need to be adopted to facilitate private investment in infrastructure. Long term
financing need of infrastructure projects may be funded through Infrastructure Debt
Fund (IDF).
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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7.9 Government as Facilitator
The role of the Government in the new economic order has changed from a regulator to
that of facilitator and coordinator. Based on the suggestions of National Manufacturing
Competitiveness Council (NMCC) to reduce the time required for development of
Greenfield sites for setting up steel projects, Ministry of Steel is contemplating to adopt
Special Purpose Vehicle (SPV) model for awarding projects to investors in the steel
sector. The Special purpose vehicle as a single entity to address multiple issues in the
steel sector will facilitate objective consolidation thereby institutional diagnoses of the
emerging challenges. In the short run, pro-active facilitation of projects in the pipeline
would be taken up on priority jointly by the Steel Ministry and the new investment
facilitation mechanism in the Cabinet Secretariat. SAIL would leverage its existing
infrastructure to substantially expand capacity. As the private sector finds it difficult
to assemble land and get clearances, the State would assume a pro-active role in
partnership with state governments. Project specific Special Purpose Vehicles (SPVs)
would be floated for identified sites which would assemble land, obtain necessary
approvals & clearances and tie up water and raw materials. Thereafter, SPV would be
offered in a transparent manner for takeover by investors in both public and private
sector companies through fair & transparent competitive bidding process. The SPVs
would be evolved on the principle of inclusive & sustainable growth dovetailing key
issues concerning development of local community, economic development of the
region, social equity, appropriate technology for mineral extraction & metal production
and ensure sustainability.
Steel being a core industry, setting up large capacity / ultra mega integrated steel plants
(UMSP) generates ripple effect through its linkages with upstream and downstream
industries such as development of metal, chemical & ceramic based industries in the
adjoining region, development of services / health / education / training centres as well
as market expansion for local populace / rural-urban shift and generation of direct /
indirect employment in and around the region.
The constraints in steel sector investment such as delays in land acquisition, change
in land use, providing land for compensatory afforestation, water & mineral linkages
and environmental & forest clearances are mostly attributable at the State Govt.
level. In order to incentivize State Governments to assume more pro-active approach
to expedite setting up Steel Projects, High Level Committee on Manufacturing (HLCM)
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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has suggested the following measures :
1. Identify & develop locations where steel plants can be competitively set up
through dedicated SPVs who shall take up land acquisition, secure regulatory
clearances, water linkages etc. for steel plants.
2. State Governments can be invited to participate in these SPVs. State Government
nominated Agency alongwith a Central PSU could be jointly allocated an iron ore
mine which would provide the iron ore linkage to the steel project at market
rates.
3. Steel Ministry has identified NMDC as the Central Agency to set up SPV for
Greenfield steel projects.
The SPV model envisaged would have the following features :
a) Land acquisition, obtaining environment & forest clearance, arranging water
linkage, developing common infrastructure & logistics plan including one single
dedicated power source for industry as well as township.
b) State Govt. participation through formation of Joint Venture between State Govt.
nominated agency and Central PSU NMDC whom iron ore mines can be jointed
allocated for development and providing iron ore linkage to the steel project at
market rates on long term basis.
c) Planning for world class township equipped with good quality social & civic amenities
for Project Affected Persons (PAP) and Project Affected Families (PAF).
d) Planning for institutionalized skill development centre for local populace
employability.
Ministry of Steel has initiated dialogue with iron ore rich State Governments of
Jharkhand, Odisha, Chhattisgarh and Karnataka to identify four to five locations close
to iron ore mining sites to initiate the process. The new scheme is expected to be
launched through a dedicated agency under the steel ministry. Administration of the
UMSP could also be contemplated to be given to a dedicated financing arm, set up as
Steel Finance Corporation akin to Power Finance Corporation (PFC) in case of an ultra
mega power project (UMPP).
With supportive policy framework, Indian steel industry can achieve sustainable
development and emerge as a major global steel player.
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8.0 Conclusion
Post liberalization, the Indian steel industry entered an unprecedented dynamic phase
of development. This benefited many steel producers (Chiefly the private sector,
in terms of new capacity additions). The multi-vector developments in the Social,
political, economic, environmental and global spheres have thrown several challenges
and opportunities for the Indian steel industry which is the fastest growing industry
at the rate of above 5% globally. These forces have necessitated an urgent “collective
engagement” & redoubling of efforts on part of the industry leaders, technocrats,
bureaucrats, political leaders and all the stake-holding institutions to re-orient the
existing industrial paradigm best suited for leveraging the opportunities and containing
the challenges in a sustainable manner. The proposition of “Special purpose vehicle”
along with the setting up of the “Ultra mega steel plant “ is one such means to attain
the desired end.
HHH
References:
1) Working group report for the 12th FY plan for the Iron & Steel industry
2) National Steel Policy-2012 (Draft)
3) World Steel Dynamics
4) World Steel Association
5) www.pib.nic.in
6) Working group report for 12th FY Plan for Power
7) Ministry of Power
8) Draft National Water Policy 2012
9) Railway Vision 2025
10) Maritime Agenda (2010-2020)
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Axcend Automation & Software Solutions
Continuous Casting: Get more from your Caster
Steel, being the most important Engineering raw material, is the key for the growth
of Manufacturing Industry. A strong steel sector propels industry growth, which in
turn drives economy’s growth. Such is the might of this metal which is facing turbulent
times in its growth trajectory.
While Steel is the base of all industries, Continuous Casting is emerging as the preferred
choice in steel making. The basic concept in continuous casting is the use of an open
ended mold to cast an indefinite length of the desired cross sectional shape.
Continuous casting transforms molten metal into solid on a continuous basis and
includes a variety of important commercial processes. These processes are the most
efficient way to solidify large volumes of metal into simple shapes for subsequent
processing. Most basic metals are mass-produced using a continuous casting process.
The molten metal solidifies against the mold walls while it is simultaneously withdrawn
from the bottom of the mold at aratewhich maintains the solid / liquid interface at a
constant position with time. The process works best when it operates such that all the
parameters remain steady.In case of Continuous casting, the capital cost is higher, but
the operating cost is lesser, when compared to other casting processes. It is the most
cost-efficient and energy-efficient method to mass-produce semifinished metal products
with consistent quality in a variety of sizes and shapes. Continuous Casting, along with
other benefits, provides benefits such as considerably lower pollution, improved labour
productivity and improved quality, as compared to the conventional methods.
The main challenges facing the steel industry
today are under-utilization of capacity, high
raw material costs, high energy costs and price
volatility. There’s an adage which says “Even
the best can be bettered.” It perfectly applies
to Continuous casting. Industry leaders always
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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work on this concept of “there is a better way” and don’t settle for less. One of the
thought processes is how to get more from the investments on continuous casters
by optimization of the operations. This thought process is vital in the current tough
market conditions. Evolution of manufacturing processes through perfect application
of technology provides the
right platform to optimized manufacturing operations. Steel manufacturers consistently
focus on to attend high quality of the yield and reduce scrap. This article contains the
overview of all the processes involved to get more from your caster.
Challenges
In the continuous casting process of steel making, the challenges are manifold. As the
plant operates on 24/7 basis, it demands enormous manual efforts to continuously
monitor and ensure desired quality of steel output. Continuous monitoring of the mold
signals is important to detect common issues that occur during the casting process.
Taking appropriate actions such as reducing cast speed, controlling water spray,
cascading, secondary processing, up/down grading through manual inspection at the
right time becomes important to achieve intended quality.
Presently, Quality inspection of samples takes place after the production which leaves
no opportunity for corrective action. Defect at specific points leads to lower grading
of entire length of bloom/billet. Blooms graded to lower quality levels need to be sold
at lower cost, thus adversely impacting the profitability. In fact, severe defects force
categorization to scrap grade. Minimizing these scrap levels is a key plant objective.
Solution Approach
Considering above challenges, here is a real time probabilistic system that helps in
grading by identifying and segregating different quality levels, while casting. It also
enables optimization of production by reducing wastage. It helps in identifying the
defects and taking corrective actions to achieve better quality of steel. Defects can
be analyzed and specific affected area of bloom made visible. Operators can use this
information and decide the quality levels for each slab/bloom/billet. Best processes are
defined from the knowhow of the steel casting process and any deviation while casting
is recorded and analyzed to identify the quality levels achieved. It also enables users
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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to define a framework wherein standard practices are set and necessary corrective
actions can be built incrementally.
Input: Grading Rules & Actual Process Signal
Grading rules provide standard set points for categorizing quality. Application Software
defines rules for quality, which can be customized for the different customers and
grades. Process signals like liquid metal temperature (especially the superheat value),
level of liquid steel in the mold, quality of electromagnetic stirring, casting speed,
tundish weight, tundish temperature, spray cooling and other real time signals are
logged from field instruments and control system. These act as inputs for the grading
system.
Output: Grading & Assign Quality Levels
Application software receives the input data, which is weighed against the predefined
rules. Based on these results, system will identify the quality level of the slab/bloom/
billet. The system identifies a specific length in a slab/bloom/billet as poor or best
quality, thus providing an opportunity for the operators to take corrective actions like
surface treatment for the specific length. Hence, cast product can be upgraded to
better quality which commands higher price. The algorithms developed based on the
rich tacit knowledge gained over the years helps in defining the quality (both surface
quality and internal composition) of steel. It is observed that the results produced by
this kind of analysis could be fine-tuned to get 70-80% accuracy.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Implementation
The above diagram gives an overview of the implementation of online grading and tracking
application at different layers. The required information is gathered by integrating PLC
and SCADA.PLC monitors and controls all the casting machine operations, and SCADA
serves as visualization application for operators.
to monitor and control. All critical operations of the casting process are controlled by
operators. Data acquisition system is put in place to collect key process signals from
PLC, SCADA and then logged into database at regular intervals. Application software
fetches the process data from the database and required analysis is carried out based
on algorithms and set of defined rules to identify the quality level of cast products.
For a given heat/sequence, it is assumed that chemical composition of the steel grade
remains same. However, based on event generation the quality level of each bloom
produced can be segregated as 1st Best, 2nd best, and 3rd best and so on.
Spray Cooling is also one of the key processes which would have direct impact on
quality levels. In order to maintain right cooling based on chemical composition and
its grade, water volumes to be sprayed for each zone are decided and are sent back to
SCADA to spray. This is done to reduce the deviations.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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In water flow levels and to ensure optimal cooling based on specific grade of steel.
Hence, it helps in achieving better quality of a product. Based on production, process
& quality parameters we can:
• Monitor and track production & inventory system.
• Define better pricing strategy based on quality levels achieved during
production.
Data Integration layer from production control systems to enterprise layer gives a
realistic view of production details, process and inventory. This would help in doing a
better planning and control of production on an enterprise level.
Solution Benefits
• Optimized process flow and plant utilization through real time application.
• Optimized schedule to obtain maximum output from the tonnage cast.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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• Customer specific configurations for casting, quality, strand cutting etc.
• Advanced spray cooling system to avoid sudden changes in the strand thermal
history resulting in more consistently better quality of steel and reduce incidents
of surface defects and cracks.
• Informed decision making through improved real time visibility.
• Increased price realization by improving quality grade& higher profitability by
reducing scrap.
The Steel industry is facing tough challenges in meeting profitability goals. By making
caster operations more visible, we can have significant contribution in revenue by
segregating the quality levels & billing them according to appropriate pricing strategy.
At the other end, growing demands of production can be met by process optimization
and reduction of wastages caused by surface defects, cracks and other defects.
HHH
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I refer my presentation in 3rd. India Steel Summit held on 8th July 2009 (page-
62) wherein I touched about utilization of Low Fe Content iron ore fines in order
to prepare pellets suitable for small, medium and large scale industries with the
capacity varying between 0.3 to 1.2 MTPA pellet plant with matching Benefication
Plant.
Considering lot of hassles in getting the iron ore tested through the appropriate technical
lab located in overseas countries which cost the buyer a huge sum of money to arrive
at a decision in order to accept performance guarantee provided by technological
provider in overseas countries.
Subsequently, the undersigned had the opportunity to interact with a Technological
Provider in overseas countries as regards the bench-mark for acceptance of concentrate
characteristics ( iron ore Fe content varying between 56 to 58 % to undergo benefication
process in order to remove the slime and improve the Fe content of ore characteristics)
to arrive at minimum 62 % concentrate Fe.
Normally, technological provider insists upon sending iron ore samples for testing
at their Laboratory for characterization of iron ore to be received from the clients.
Generally, they ask for three sets of samples and the samples received at their
Laboratory in overseas countries in the form of Blue Dusts, Crushed Fines and
Washed Fines.
The three ores contain the same minerals but in different proportions. Iron is in the
form of haematite, goethetite, limonite. The source of alumina and silica is alumina
hydroxide and quartz, as shown in Table-1 and Table-2 gives the washed fines
chemical analysis.
Bikash Roy Choudhury
Chief Executive Officer, Adhunik Corporation Limited
Issues In Pelletization Technology
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Table-1: MINERALS IDENTIFICATION OF THREE ORES
Element Minerals Blue Dust Crushed Fines Washed Fines
Fe
Hematite
Goethite
Liminite
+++
++
++
+++
++
++
+++
+++
++
Al Al hydroxide + + +
Si Quartz + + +
+++) 40 – 60 %; ++) 20 – 40 % ; +) < 5 %
Table-2: WASHED FINES CHEMICAL ANALYSIS
% Fe tot Total +16 M-16M +
35 M
-35M +
100M
-100M +
200M
-200M
+ 325M-325 M
%Fe tot 61.7 61.9 61.5 61.1 59.3 59.6 58.2
%SIO2 1.83 1.71 2.09 2.15 3.24 3.39 4.89
%Al2 O3 3.41 3.25 3.48 3.58 4.51 4.55 5.36
%MgO <0.04 <0.04 <0.04 <0.04 <0.04 <0.04 0.06
%CaO 0.04 0.03 0.04 0.04 0.10 0.14 0.14
%P2O5 0.22 0.207 0.211 0.213 0.219 0.223 0.212
% LOI 6.64 5.99 6.06 5.90 6.68 6.40 5.57
% weight 100 73.1 14.6 9.9 0.7 0.3 1.4
At least 70 % of their LOI ( loss of ignition can be removed at 3300C ) . The three ores
have similar grinding work as shown in Table – 3 below :
TABLE-3: BOND INDEX OF THE THREE ORES
P80As received material
WikWh / t
WFor regrinding to P80 = 75 microns (kWh/t)
Blue Dust 2380 12.1 11.5
Crushed Fines 4274 12.0 12.0
Washed Fines 5659 11.9 12.2
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Determination of pelletization particle size distribution :
Pelletizing particle size distribution was fixed by the maximum top size targeted ( 5 %
+ 100 Mesh ) which resulted in the following :
• Blaine = 2500 to 2700 cm2 / g
• % - 325 mesh = 64 to 66 %
Most of the pellet plant producers in small and medium scale industries largely
depends upon sourcing of iron ore, iron ore fines from different mines / traders
and the characteristics of iron ore fines varies from mines to mines centering
Jharkhand, Orissa, Chhattisgarh states and the Technological Provider will undertake
performance guarantee for the pellet plant project only when tests are conducted
and meets their requirements. The above technological provider carries out the
following tests :
1) Determination of ore particle size for pelletizing
2) Determination of pellet chemistry
3) Ore re-grinding condition
4) Balling condition
5) Development of firing condition
6) Fix the pellet quality
7) Impact of fired pellet recirculation on quality
After determining all these factors, then they will give the Performance Guarantee.
The undersigned took up the issue with the Technological Provider for arriving at
an acceptable norms for concentrate characteristics considering the investors who
are largely depending upon outsourcing and they do not have their own mines and
investment to the tune of Rs.300 crores approx. for a capacity plant of 1.2 MTPA pellet
plant and matching Benefication Plant.
After lot of deliberations with the Technological Provider the following norms as shown
in Table- 4 given below have been accepted :
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Table-4: Concentrate Characteristics
Item Wt. %
Fe Min 62 %
SiO2 + Al2O3 Max. 7 %
SiO2 / AL2O3 Wt. ratio Min. 1.2
LOI Max. 4 %
Particle SizeMax. 2 % > 100 mesh
Min. 70 % < 325 mesh
Fuel:
Secondly, considering the fuel cost being very exorbitant (producer gas / coal gas )
affecting the production cost and thereby the gross contribution is very much minimal.
The technological provider has been asked to use coal gas / producer gas along with
the fuel (furnace oil) in order to lower the cost per ton of pellets. The technological
provider has given their consent for use of coal / producer gas as per given below
properties. This chapter also deals with fuel oil properties of Oil Companies (in this
case Bharat Petroleum) :
Table-5: FUEL
Typical Fuel Gas (Coal Gas) Properties
Gas Component Units
CO%
CO2%
H2%
CH4%
N2%
C2H4%
O2%
H2S%
H20Max. Dew Point Temp., 0C
Dust mg/Nm3
Producer Gas 25 6 13 1.5 53 0 0.6 0.2 5 5
Property
Units
Min. Pressure at Indurat-ing Machine BMS Kg/cm2
Max.Temp. at Indurating Machine
BMS 0C
Min. Calorific Value
Kcal/Nm3
Max Calorific Value
Kcal / Nm3
NH3
Mg/Nm3
CaH10
Mg / Nm3
Producer Gas 0.97 50 1350
Table-8: Fuel Oil Properties
Furnace Oil MV2 Carbon Hydrogen Oxygen Nitrogen Sulfur Water Ash
Composition Wt. % 84 11 0.5 0.4 3.5 0.5 0.1
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Characteristics Grade MV2 Requirements
Inorganic acidity Nil
Ash, % wt.Max 0.1
Gross Calorific Value, cal/gm 10,000
Density at 150 C Assume 0.95
Flash Point 0C.min 66
Kinematic
Viscosity, centistokes @ 500 C 125 - 180
Sediment, % wt. Max 0.25
Sulfur, total % wt.Max 4.0
Water content , % v/v Max 1.0
Pour Point, 0C, Max 27
For allowing at this accepted norms, particularly for the iron ore characteristics and
producer / coal gas was discussed and deliberated upon with the Technological Provider
and ultimately the consensus has been arrived in the foregoing paragraphs and the
undersigned hope that above feedback may help the industries looking for setting up
of benefication and pelletization plant.
HHH
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ASSOCHAMTHE KNOWLEDGE ARCHITECT OF CORPORATE INDIA
EvOLuTION OF vALuE CREATORASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. Having in its fold more than 400 Chambers and Trade Associations, and serving more than 4,00,000 members from all over India. It has witnessed upswings as well as upheavals of Indian Economy, and contributed significantly by playing a catalytic role in shaping up the Trade, Commerce and Industrial environment of the country.
Today, ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the technology driven cyber age of ‘Knowledge Based Economy’.
ASSOCHAM is seen as a forceful, proactive, forward looking institution equipping itself to meet the aspirations of corporate India in the new world of business. ASSOCHAM is working towards creating a conducive environment of India business to compete globally.
ASSOCHAM derives its strength from its Promoter Chambers and other Industry/Regional Chambers/Associations spread all over the country.
vISION
Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the barrierless technology driven global market and help them upscale, align and emerge as formidable player in respective business segments.
MISSION
As a representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and interests of its members. Its mission is to impact the policy and legislative environment so as to foster balanced economic, industrial and social development. We believe education, IT, BT, Health, Corporate Social responsibility and environment to be the critical success factors.
MEMbERS – OuR STRENGTH
ASSOCHAM represents the interests of more than 4,00,000 direct and indirect members across the country. Through its heterogeneous membership, ASSOCHAM combines the entrepreneurial spirit and business acumen of owners with management skills and expertise of professionals to set itself apart as a Chamber with a difference.
7th India Steel Summit“Realizing 300MT – Challenges Ahead”
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Currently, ASSOCHAM has more than 100 National Councils covering the entire gamut of economic activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field of Corporate Social Responsibility, Environment & Safety, HR & Labour Affairs, Corporate Governance, Information Technology, Biotechnology, Telecom, Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs, Mergers & Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal Reforms, Real Estate and Rural Development, Competency Building & Skill Development to mention a few.
INSIGHT INTO ‘NEW buSINESS MODELS’
ASSOCHAM has been a significant contributory factor in the emergence of new-age Indian Corporates, characterized by a new mindset and global ambition for dominating the international business. The Chamber has addressed itself to the key areas like India as Investment Destination, Achieving International Competitiveness, Promoting International Trade, Corporate Strategies for Enhancing Stakeholders Value, Government Policies in sustaining India’s Development, Infrastructure Development for enhancing India’s Competitiveness, Building Indian MNCs, Role of Financial Sector the Catalyst for India’s Transformation.
ASSOCHAM derives its strengths from the following Promoter Chambers: Bombay Chamber of Commerce & Industry, Mumbai; Cochin Chambers of Commerce & Industry, Cochin: Indian Merchant’s Chamber, Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and Industry, New Delhi and has over 4 Lakh Direct / Indirect members.
Together, we can make a significant difference to the burden that our nation carries and bring in a bright, new tomorrow for our nation.
The Associated Chambers of Commerce and Industry of India
ASSOCHAM Corporate Office:5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009 Email: [email protected] • Website: www.assocham.org
NOTES