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PRE-FEASIBILITY REPORT

FOR

EXPANSION UNIT

OF

STAINLESS STEEL BILLETS FROM 60,000 MTPA TO

1,80,000 MTPA

Plot no 32, 33-B, 34, 35 & 36, Umbargaon Industrial Area,

Dist Valsad, Gujrat

M/S CHANDAN STEEL LIMITED

EIA Consultant: Pollution and Ecology Control Services

(PECS), Nagpur, Maharashtra

Pre-Feasibility Report

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1.0 INTRODUCTION

1.1 PREAMBLE:

The demand for Stainless Steel has been increasing enormously due to the significant use

and need in day-to-day life in the form of coils, sheets, plates, bars, wire, tubing, etc., to

be used in cookware, cutlery, hardware, surgical instruments, major appliances, industrial

equipment etc. Stainless Steel could very well be the metal of future as it is lustrous,

ability to combat corrosion, 100% recyclable, hygienic and long-term value. Furthermore,

riding on strong growth for steel demand, the company is proposing to expand its

capacity in producing Stainless steel along with Oxygen and Nitrogen gas production.

1.2 PROJECT DISCRIPTION:

The production details of the proposed expansion and new unit are given below

Stainless Steel Billets – Existing production – 60,000 M.T. Per Annum,

Proposed expansion:

1,20,000 M.T. Per Annum after Expansion production = 1,80,000 M.T. Per Annum

After Expansion:

Oxygen Gas – 15.0 Lacs M3 / Month

Nitrogen Gas – 9.0 Lacs M3 / Month

SITE DESCRIPTION:

The proposed project is located in plot no 32, 33B, 34, 35 & 36, GIDC, Umbargaon,

Valsad District, Gujarat State.

SITE LOCATION:

The nearest Railway station is Umbargaon and the nearest district head quarters to the

proposed site is Valsad which is in North direction. The nearest airport is Mumbai – 150

km away.


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Umbargaon Railway Station is at 2.7 km away from the project site and highway (NH8)

is at 14km away. This facilitates transportation of the raw materials and finished product

to major markets. Even for exports, the location is ideal as the Jawaharlal Nehru Port

Trust (JNPT) is 140 km away in SSE direction from the project site.

Figure 1: Study Area


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SOURCE & AVAILABILITY OF WATER:

Water will be sourced from GIDC and the total water requirement will be 190 KLD.

POLLUTION CONTROL MEASURES:

The pollutants in the form of solids, liquids and gases are generated from various

technological units and, if let out as such, will have hazardous effects on the

environment. Pollution of the environment, not only adversely affects the flora and fauna,

but also shortens the life of plant and equipment. This vital aspect, therefore, has been

taken into account while planning the plant and equipment and adequate measures have

been proposed to limit the emission pollutants within the stipulations of statutory norms.

• During construction only domestic waste shall be generate and will get treat in septic

tank.

• Dust will be generated during transportation, storing of raw material and construction

activities. The dust emission shall be mitigated by water spraying on the roads within

the plant premises.

• Domestic / sewage effluent shall be sent to septic tank followed by soak pit.

2.1 INTODUCTION OF THE PROJECT AND BACKGROUND OF PROJECT

PROPONENT

M/s. Chandan Steel Ltd (CSL) was incorporated on 8th

November, 1989 with no loss

track record since its inception and the Certificate for Commencement of Business was

issued on 06.02.1990. The objective of business is to manufacture Stainless Steel

materials like Bright Bars, Angles, Wires, Flat Bars and Flanges with annual production

capacity of 60000 MT.

Currently, the company has a 25 tons induction furnace with a 15 tons Argon Oxygen

De-carbonization vessel with a micro-processor based gas mixing station.

2.2 JUSTIFICATION :

The demand for steel in the country is currently growing at the rate of over 8% and it is

expected that the demand would grow over by 10% in the next five years. However, the


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steel intensity in the country remains well below the world levels. This indicates that

there is a lot of potential for increasing the steel consumption in India. To meet the

increasing demand and to stimulate economic growth the proponent has proposed the

expansion of the existing unit.

Government policy is to achieve global competiveness not only in terms of cost, quality

and product-mix but also in terms of global benchmarks of efficiency and productivity.

This will require indigenous production of steel over 100 million tons (MT) per annum

by 2019-20 from 30 MTPA in 2004-05. This implies a compounded annual growth of

7.3% per annum. Projected gap between Supply & Demand for steel is expected to

further increase in production by 2014.

2.3 EMPLOYMENT GENERATION (DIRECT & INDIRECT):

The proposed expansion project creates direct and indirect employment to 35 people.

3.0 PROJECT AT GLANCE

Particulars Details

Location Plot No. 32, 33B, 34, 35 & 36, GIDC, Umbargaon ,

Valsad District, Gujarat State

Geographical Positions Latitude – 20° 09’ 39” N

Longitude – 72° 46’ 22” E

Elevation 22 m

Land Area 4.20 Acres

Present Land use Industrial

Nature of Terrain Flat

Predominant Wind direction West (Summer Season)

Nearest Highway NH 8 – 14 km, East


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Nearest Railway Station Umbargaon – 2.7 km, South East

Nearest Airport Chhatrapati Shivaji International Airport (Mumbai) –

150 km, South

Nearest District Head Quarters Valsad – 42 km, North

Nearest Sea Port Jawaharlal Nehru Port Trust (JNPT)- 140 kms SSE

Nearest Village Dahad – 1.5 km, South

Solsumba – 1.6 km, North East

Nearest State Boundary Gujarat – Maharashtra, 3.0 km, South East

Monuments Nil

Archaeologically important places None

National Parks None in 25 km radius

Forests None in 25 km radius

Seismicity Zone III

Water Bodies Varoli River – 4.4 km North East,

Arabian Sea – 3.5 km East


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4. Raw Material Requirement :

The raw material requirement is given in the table given below.

RAW MATERIAL CONSUMPTION PER HEAT FOR PROPOSED EXPANSION

PROJECT

Sr.

No. In-puts Description Qty (kg)

( A ) Raw Material

Charging

Qty

Finish Liquid

Metal Slag

1 Hot Metals 45000 74874 10350

2 H.C Ferro Chrome 2490

3 H.C Ferro Manganese 1995

4 Ferro Silicon 1680

5 Ferro Nickel 1500

6 Scrap Coolant 24900

( B ) FLUXES

1 Lime 2560

2 Dolomite 1280

Total 45995 74874 10350

5. POWER REQUIREMENT:

The power required will be supplied by State Electricity Board. The power requirement

for the proposed project will be 1200 KV.

3.1 PROCESS DETAILS

The technology for manufacturing the S.S. products has been developed in-house based

on several years of experience in this field and also based on the inputs received by the

company from its own in-house technical team or Metallurgist who are expert in this

field.

The production process is broadly referred to as to “DUPLEX REFINING”. The crux of

the production process is input of low value high carbon steel and Ferro Alloys and

production process is broadly as follows:

• Medium frequency Induction Furnace (melting)


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• Argon Oxygen Decarbonisation (AOD) Convertor.

• Ladle Refining Furnace (LRF).

• Continuous Casting in a Concast billet Machine.

• Hot rerolling of billets into hot rolled bars, angles, stub ends and Flats.

The ferrous charge containing Steel Scrap and Ferro Alloys is melted in an Induction

Furnace as per the calculated quantities to get the desired steel chemistry. After

temperature adjustment and slagging off, the liquid metal is transferred to the pre- heated

AOD Vessel. Calculated quantities of lime are added in the hot metal and processed by

gas blowing in pre- fixed ratios Oxygen & argon/nitrogen. The Oxygen, Argon/ Nitrogen

start to decarbonize the melt. Blowing is done in three or four stages with changing ratios

of Oxygen and inert gases as per the carbon level of the liquid metal. During blowing,

due to several exothermic oxidation reactions, the temperature of the bath goes up, but it

has to be controlled by addition of coolant scrap.

During refining, decarbonisation, the chromium and manganese also gets oxidized and go

to slag. After decarbonisation, a reducing mixture containing Ferro Silicon and lime is

added to the liquid bath in order to reduce the oxidized chromium/ manganese, so that the

desired level of chromium and manganese are restored in the final steel output. After

degassing, composition of refined steel is checked and alloying additions are made, if

necessary.

The plant has got facility for duplex refining as a result of the L.R.F. In the AOD

conversion with the passing of Oxygen, first the temperature goes up, however, with the

addition of non-ferrous metal and of the refining process, the temperature of the molten

metal drops to a level barely adequate for pouring into the L.R.F. In the L.R.F., the

temperature of the metal is raised to the desired level. Here the process broadly intends to

attain the following:

• Fine tuning of refining to maintain desired level of composition of inputs.

• Removal of inclusions by argon purging.

• Removal of excess quantities of oxygen, by purging.


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• Bringing floating inclusions at slag level.

The AOD process will be fully computerized in this plant thereby enabling dynamic

control of the refining process. The refined metal will be fed to continuous caster to

produce billets of standard sizes. The continuous caster envisaged in the project is a two

strand make so that productivity is enhanced and the cost is reduced and quality will be

improved. The stainless steel billets can be hot rolled in the flats of required dimensions

to be cold rolled into sheets for making end products such as utensils. The AOD

convertor method of Steel refining has several advantages, which have made it the most

popular process for making stainless steel and alloy steel. In fact, about two third of the

world use this process to make stainless steel and alloy steels. The major attributes of the

AOD process are raw-material and processing flexibility, scrap melting potential, low

energy consumption, slag handling capability, optimization of melting potential, low

operational costs, ease of maintenance, use of low cost high carbon Ferro alloys, higher

alloy recovery and high productivity.


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4.0 SELECTION OF SITE & LOCATION OF PLANT

Selection of the site for any project is the most important aspect for it’s successful

operation & better economic viability. Proximity to Raw material source, assured supply

of fuel and other infrastructural support are required to be essentially examined while

selecting the site of the plant. The following basic requirements are necessarily required

to be fulfilled.

i. Easy & nearer access to Raw Material.

ii. Availability of water from continuous source.

iii. Power supply/ evacuation arrangement.

iv. Nearer access through road.

4.1 LOCATION:

The nearest Railway station is Umbargaon and the nearest district head quarters to the

proposed site is Valsad which is in North direction. The nearest airport is Mumbai – 150

km away.

Umbargaon Railway Station is at 2.7km away from the project site and highway (NH8)

is at 14km away. This facilitates transportation of the raw materials and finished product

to major markets. Even for exports, the location is ideal as the Jawaharlal Nehru Port

Trust (JNPT) is 140 km away in SSE direction from the project site.

4.2 SITE ANALYSIS

LAND USE

The existing land is industrial land.

TOPOGRAPHY

The topography of the land is plain.


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EXISTING LAND USE PATTERN

The existing land is industrial land.

EXISTING INFRASTRUCTURE

All required infrastructure is prevailing in the site.

GREEN BELT

33% of total land will be developed as Green belt.

SOCIAL INFRASTRUCTURE

Social infrastructure will be developed as per need based in the Villages

4.3 Availability of Utilities

For successful running of any unit most important factor is the availability of Raw

Materials, as well as Utilities & Power, Water Connectivity which are required to

efficiently run the Equipment.


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5.0 Water System & Plant Utilities:

5.1 Source of Water

Water required for the plant will be provided by GIDC

5.2 Water Consumption

The total water requirement for the project will be about 190 KLD for the process.

5.3 Fire Protection System

The fire fighting system will be designed in conformity with the recommendations of the

Tariff Advisory Committee (TAC) of Insurance Association of India. While designing

the fire protection systems for proposed facilities its extreme ambient conditions need

special attention. Codes and Standards of National Fire Protection Association (NFPA)

will be followed, as applicable.


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6.0 ENVIRONEMENTAL MANAGEMENT PLAN

6.1 Sources of Pollution

The major sources of pollution from proposed units can be classified under the following

heads:

• Pollutants in the waste gases namely, suspended particulate matter (SPM), sulphur

dioxide, NOX and Carbon monoxide, etc.

• Fugitive dust generated during vehicular movement

• Noise pollution

• Waste water and sewage

• Solid Waste Generation

The various measures proposed to mitigate the impact of these pollution sources on the

environment are discussed below:

6.2 Pollution Control Measures

6.2.1 Air Pollution

Proper care will be taken by installing Bag filters followed by Stack to control source

emission. Hence there will not be any major deposition of pollutants into air, land and

water.

To control fugitive dust emissions due to vehicular movement water sprinkling and

spraying system will be installed. Internal roads will be asphalted.

6.2.2 Water Pollution

It is estimated that total effluent generation from the proposed expansion plant will be as

domestic effluent. The domestic effluent will be treated through septic tank followed by

soak pits and no effluent remains after soak pits for further disposal.

Zero discharge condition from the proposed expansion plant will be maintained.


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6.2.3 Noise Pollution

There will no such high noise generate due to operation of proposed expansion units,

however Noise generation may occur due to handling of raw materials and finished

products. For that Ear plugs/ ear muff will be provided to the workers working in noisy

area.

6.2.4 Solid Waste Management

Following are the solid waste generation due to operation of proposed expansion units:

b. Slag from Induction Furnace

Disposal of Slag from Induction Furnac:

Slag generated from manufacturing of Billets will be sold to manufacturer of brick

manufacturers.

6.2.6 Plantation

The plantation scheme covers the plantation of ornamentals plants and some local fruit

bearing species.

Selection Criteria of plant species for Green Development Plant

The selection of plant species for the development depends on various factors such as

climate, elevation and soil. Area falls under the tropical region and thus the plants that

area adapted to this condition should be selected. The plant should exhibit following

characteristics in order to be selected for plantation.

1. The species should be fast growing and providing optimum penetrability.

2. The species should be wind firm and deep rooted

3. The species should form a dense canopy.

4. As far as possible, the species should be indigenous and locally available

5. Species tolerance to air pollutants like SPM, SO2, and NOx should be preferred.


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6. The species should be permeable to help create air turbulence and mixing within the

belt.

7. There should be no large gaps for the air to spill through.

8. Tree with high foliage density, leaves with larger leaf area and hairy on both the

surface.

9. Ability to withstand conditions like inundation and drought.

10. Soil improving plants (Nitrogen fixing, rapidly decomposable leaf litter).

11. Attractive appearance with good flowering and fruit bearing.

12. Bird and insect attracting tree spacing.

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