PRE-FEASIBILITY REPORTenvironmentclearance.nic.in/writereaddata/Online/TOR/02...PRE-FEASIBILITY...

PRE-FEASIBILITY REPORT

By

Ankur Udyog Limited (Steel Division) [DRI Kilns (3,30,000 TPA), Induction Furnace with Concast (MS Billets/Hot metal for hot charging)

along with 1 x 35 T Ladle Refining Furnace (LRF) & 1 x 3 Strand Billet Caster (3,56,400 TPA), Rolling

Mill (3,56,400 TPA), Power Generation – 50 MW (24 MW through Waste Heat Recovery Boiler

(WHRB) and 26 MW through Fluidized bed combustion (FBC) Boiler)]

At

Plot No. AL-2, Sector 23, GIDA Industrial Area,

Village Sahbazganj & Domharmafi,

Tehsil Sahjanwa, District Gorakhpur,

Uttar Pradesh - 273209

Prefeasibility Report Ankur Udyog Ltd. (Steel Division) [Integrated Steel Plant]

i

INDEX

Chapter –1:EXECUTIVE SUMMARY ......................................................................................................... 1

1.1 SALIENT FEATURES OF THE PROJECT ....................................................................................... 1

1.2 PROJECT PROPONENT .............................................................................................................. 1

Chapter – 2: INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION .................................. 6

2.1 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT ........................................................... 6

2.2 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION ............ 7

2.3 DEMAND AND SUPPLY GAP ..................................................................................................... 8

2.4 EXPORT POSSIBILITY ................................................................................................................. 8

2.5 DOMESTIC/EXPORT MARKETS ................................................................................................. 8

2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT ...................... 11

Chapter – 3 : PROJECT DESCRIPTION .................................................................................................... 13

3.1 TYPE OF THE PROJECT ............................................................................................................ 13

3.2 LOCATION OF THE PROJECT ................................................................................................... 13

3.3 DETAILS OF THE ALTERNATE SITES ......................................................................................... 16

3.4 SIZE OR MAGNITUDE OF OPERATION .................................................................................... 18

3.5 MANUFACTURING PROCESS .................................................................................................. 18

3.5.1 DRI KILN BASED SPONGE IRON PLANT ............................................................................ 18

3.5.2 STEEL MELTING SHOP ..................................................................................................... 21

3.5.3 ROLLING MILL.................................................................................................................. 23

3.5.4 POWER PLANT ................................................................................................................. 26

3.6 RAW MATERIAL REQUIREMENT ............................................................................................. 28

3.7 WATER REQUIREMENT AND ITS SOURCE .............................................................................. 31

3.8 WASTEWATER GENERATION & ITS MANAGEMENT .............................................................. 31

3.9 SOLID WASTE GENERATION AND ITS MANAGEMENT ........................................................... 32

3.10 POWER REQUIREMENT .......................................................................................................... 33

Chapter – 4 : SITE ANALYSIS .................................................................................................................. 34

4.1 INFRASTRUCTURE ................................................................................................................... 34

4.2 CONNECTIVITY ........................................................................................................................ 34

4.3 LAND DETAILS ......................................................................................................................... 35

Chapter – 5 : PLANNING BRIEF ............................................................................................................. 36

5.1 PLANNING CONCEPT .............................................................................................................. 36

5.2 POPULATION PROJECTION ..................................................................................................... 37

5.3 LAND USE PLANNING ............................................................................................................. 37


ii

5.4 AMENITIES / FACILITIES .......................................................................................................... 38

Chapter – 6 : PROPOSED INFRASTRUCTURE ......................................................................................... 39

6.1 INDUSTRIAL AREA (PROCESSING AREA) ................................................................................. 39

6.2 RESIDENTIAL AREA (NON PROCESSING AREA) ....................................................................... 39

6.3 GREEN BELT ............................................................................................................................ 39

6.4 SOCIAL INFRASTRUCTURE ...................................................................................................... 39

6.6 DRINKING WATER MANAGEMENT ......................................................................................... 40

6.7 WASTEWATER GENERATION & ITS MANAGEMENT .............................................................. 40

Chapter – 7: REHABILITATION & RESETTLEMENT (R & R) PLAN ........................................................... 41

Chapter – 8 : PROJECT SCHEDULE & COST ESTIMATES ........................................................................ 42

8.1 PROJECT SCHEDULE ................................................................................................................ 42

8.2 PROJECT COST ........................................................................................................................ 43

Chapter – 9 : ANALYSIS OF PROPOSAL.................................................................................................. 44

9.1 FINANCIAL AND SOCIAL BENEFITS ......................................................................................... 44

9.2 SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES .................................................................. 44

Chapter – 10 : BASELINE DATA COLLECTION ........................................................................................ 45

9.1 BASELINE DATA COLLECTION ................................................................................................. 45


1

Chapter –1:EXECUTIVE SUMMARY 1.1 SALIENT FEATURES OF THE PROJECT

Ankur Udyog Ltd. (Steel Division), have proposed to setup the Integrated steel plant at Plot

No. AL-2, Sector 23, GIDA Industrial Area, Village Sahbazganj & Domharmafi, Tehsil Sahjanwa,

District Gorakhpur, Uttar Pradesh. Following is the plant configuraton and production

capacity:

S.No. Units Plant Configuration

(Production Capacity)

1. DRI Kilns (Sponge Iron)

2 x 500 TPD (3,30,000 TPA)

2. Induction Furnace with Concast (MS Billets/Hot metal for hot charging) along with 1 x 35 T Ladle Refining Furnace (LRF) & 1 x 3 Strand Billet Caster

3 x 30 T (3,56,400 TPA)

3. Rolling Mill [MS Re-Bars (TMT) and structural steel]

1 x 800 TPD & 1 x 280 TPD (3,56,400 TPA)

4. Power Plant (Electricity) (50 MW)

WHRB - 2 x 50 TPH 24 MW

FBC - 1 x 110 TPH

26 MW

1.2 PROJECT PROPONENT

Ankur Udyog Limited is a Public Limited Company incorporated in the year 1996. The

company till date has been involved in the Textile Sector, manufacturing and processing of

manmade fiber yarn (Polyester & Viscose Yarn). The company had setup its first spinning unit

at Gorakhpur in 1998 with an installed capacity of 20,736 spindles, which has been

subsequently increased to present capacity of 65,664 spindles. The unit is engaged in

manufacturing of polyester yarn & polyester viscose yarn of different counts depending on

the market demand.

The company is registered with Registrar of Companies of West Bengal (now being

Transferred to Registrar of Companies of Uttar Pradesh) having CIN –

U28113WB1996PLC081427, PAN – AACCA6741R and GSTIN - 09AACCA6741R1Z3. In its

journey of growth, the company faced many challenges but has successfully emerged as one

of the finest manufacturer of synthetic yarn in the country. The company had undertaken

several expansions since 1998 and has reached the present production capacity to 65,664

spindles as under:


2

Year No. of Spindles Installed 1997-98 20,736 2002-03 13,824 2005-06 13,824 2013-14 17,280

Total 65,664

The Directors of the company have ample experience in the manufacturing sector. Though

currently they are engaged in the textile sector but, as a matter of fact they are the pioneers

of the steel industry in the region, having set up the first Induction Furnace and Rolling mill of

Purvanchal way back in 1987. The company management possesses deep knowledge and

experience of the steel industry as well.

Promoters / Directors Profile

Name Mr. Ashok Kumar Jalan (Director)

Father’s Name Late Shri. Jugal Kishore Jalan

Date of Birth 18/10/1957

Qualification M.Com

Nationality Indian

PAN ABQPJ4210Q

Aadhaar No. 471174795713

Address Moharipur, Gorakhpur, Uttar Pradesh

Experience Main person behind the group. He is the Director & Promoter of the company possessing more than 30 years of experience in Steel & Textile manufacturing. He has been involved in running a steel manufacturing unit (Induction Furnace & Steel bars) from the year 1987 to 2002. He is well versed with all the aspects of Marketing, Finance, Costing, Technical matters and Administration.

Net Worth as on 31/03/2017 Rs. 990.44 Lakhs


3

Name Mrs. Kusum Jalan (Director)

Husband’s Name Mr. Ashok Kumar Jalan


Qualification B.Com

Nationality Indian

PAN ABQPJ4209F

Aadhaar No. 255516938195


Experience Director & Promoter of the company possessing more than 25 years of experience in Steel & Textile manufacturing. She is a dynamic lady and an experienced entrepreneur. She has deep knowledge of the industry.


Name Mr. Ankur Jalan (Director)

Father’s Name Mr. Ashok Kumar Jalan


Qualification MBA

Nationality Indian

PAN AEJPJ6244E

Aadhaar No. 779770852547


Experience Director & Promoter of the company, he is a young and spirited entrepreneur. He is associated with day to day activities of the company and is looking after all the functions of the existing spinning mill for more than 10 years. He will be actively involved in setting up the new proposed project and its operation.



4

Name Mr. Nikhil Jalan (CEO)

Father’s Name Mr. Ashok Kumar Jalan


Qualification Masters in Finance

Nationality Indian

PAN AGHPJ2324B

Aadhaar No. 959551845803


Experience He has been working in the existing textile unit of the company for the last 4 years and has acquired vital experience of the manufacturing industry. He holds a Msc. in Finance & Accounts from The Cass Business School, London and has a diploma in Entrepreneurship & Business Leadership from the world-renowned London School of Economics (LSE). He will be actively involved in setting up the new proposed project and its operation.


Highlights / Achievements of the Company

The company is a growing and expanding entity, in a span of 15 years the installed capacity of

the company has already increased by 3 times (300%) from 20,736 spindles in 1998-99 to

65,664 spindles in 2013-14.

The main person behind the group Mr. Ashok Kumar Jalan has been felicitated with the

honorary “UDDYAMI SAMMAN 2010” for leading Entrepreneur in the state of Uttar Pradesh

by ZEE News.

The company has strong financial track record and is virtually debt free. The company has

adequate resources to meet the equity contribution towards the proposed project. The

company has ample amount of surplus parked in various liquid Investments like mutual funds.

The company provides direct employment to more than 750 workers and indirect employment

to many more. The proposed unit will further generate approx. 510 direct employment

opportunities.

The company is the LARGEST manufacturer of Non-cotton yarn in the state of Uttar Pradesh as

has been ranked amongst the “TOP TEN SPUN YARN PRODUCING TEXTILE MILLS (NON-


5

COTTON) OF INDIA”. As per the Official Indian Textile Statistic annual data published by the

Ministry of Textile, Govt. of India, the national ranking in the Non-Cotton category of the

company for the past few years is as below:-

Financial Year National Rank

2010-11 5th 2011-12 7th 2012-13 7th

The company is now proposing to set up a new unit as Ankur Udyog Limited (Steel Division).

This proposed unit is for a state-of-art Integrated Steel Plant with Captive Power Plant. The

proposed unit will be set-up on a land admeasuring Approx 79 acers (32 Ha.) which is allotted

to the company by the Gorakhpur industrial Development Authority (GIDA) for setting up a

steel plant.

To meet the ever increasing demand of Steel, AUL has decided to set up an Integrated Steel

making facility consisting of a DRI Unit (Sponge Iron), Captive Power Plant to utilize the heat

from the waste hot gases and Char/Coal, Steel Melt Shop of matching capacity having

melting, refining and billet casting & Rolling Mill to manufacture TMT Bars and Structural

Steel.


6

Chapter – 2: INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

2.1 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT



District Gorakhpur, Uttar Pradesh.

In view of the tremendous market potential of iron & steel products promoters have decided

to set-up an Integrated Steel Plant with Captive Power Plant. This project shall consist of

production of Sponge Iron (DRI), Steel Billets, Re-rolled products (TMT Bars and structural

steel) with Captive Power Plant. Integration and Captive power will make the project

profitable and make it financially more viable. The in-house consumption of sponge iron for

manufacturing of billets, which would further be rolled into TMT bars and captive power plant

utilizing the waste heat rejects from the sponge iron would improve the overall profitability of

the project. The modules of the projects are as follows:

S.No Division Rational

1. DRI

(Sponge Iron)

To produce sponge iron by installing 02 Rotary Kiln with a

capacity of 500T/Day, Assuming 330 Working days in a

year the final capacity comes to 3,30,000 TPA. This

production of Sponge Iron will be utilized in the in-house

Steel Melt Shop (Induction Furnace with Continuous

Casting) to produce Steel Billets. Further, the waste heat

of sponge iron kilns shall be utilised by the captive power

plant for power generation up to 24 MW

2. Steel Melting Shop

(MS Billet/Hot metal

for hot charging)

To produce Steel Billets by installing 03 Induction

Furnaces of 30 T/Heat, 1 x 35T Ladle Refining Furnace

(LRF) & 1 x 3 Strand Billet Caster. Considering 12 Heats

per day with 330 working days in a year the capacity

comes 3,56,400 TPA. This production will be further used

to meet the requirements of the In – House Rolling Mill.

3. Rolling Mill

Rebar Mill and Section

/ Structural Mill

(MS Re-Bars &

Structural Steel)

To manufacture MS Re-Bars (TMT) and Section / structural

steel by installing 1 x 800 TPD & 1 x 280 Rolling Mill.

Considering 330 working days in a year, the capacity

comes to 3,56,400 TPA. This will be the final finished

product of the proposed unit. The proposed mill will be

set up on the concept of Hot Rolling of the Billets from the

Continuous Casting Machine to save power. For some


7

S.No Division Rational

balance materiel which could not be Hot-Charges a Re-

Heating Furnace will be installed

4. Captive Power Plant

To generate captive power for the entire project

requirement of 50 MW and efficient utilization of waste

heat (Gases) and solid waste (Dolochar) coming out from

DRI kilns. This will reduce the overall cost of power

significantly. Entire power shall be consumed by the unit

itself. A 50 MW Turbo Generator (TG) will be installed

with 24 MW WHRB (2 x 50TPH) and 26 MW CFBC Boiler (1

x 110TPH). The above shall fulfil almost the entire need of

power of the proposed project.

2.2 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION

Steel Industry

Looking at the present world and India Steel scenario, decision by the Company to set up the

unit is timely. Indian Steel industry is poised for a massive growth in next 10-12 years.

International Steel Scenario

Global Steel demand is rising on the back of accelerated infrastructure activity in China, CIS

countries & India; housing and industrial boom in Middle East and the African Countries.

During the last almost decade-long recession, the industry has consolidated in terms of

ownership as well as mothballing of inefficient capacities. Internationally steel prices are

expected to continue firming up.

National Steel Scenario

Indian government has announced National Steel Policy (NSP) in early November, 2005. The

policy envisages a compound annual growth rate (CAGR) of 7.3% per annum in steel sector up

to 2019-20. To achieve this, the NSP aims to increase indigenous production from 44Mt level

to about 110 Mt by 2019-20, through multi-pronged strategy. The focus of NSP is on to

achieving global competitiveness, not only in terms of cost, quality and product- mix but also

in terms of global benchmarks of efficiency and productivity.

The government proposes to create incremental demand for domestic consumption of steel

through promotional efforts, awareness drives and strengthen the delivery chain, particularly

in rural areas.

According to available estimates, the NSP mentions that domestic consumption of steel in

India stood at 31Mt in 2003-04. Bringing production up to 110 Mt would, therefore, mean an


8

increase in domestic consumption of about 80Mt. The urban per capita consumption is

expected to go up from the present level of 77 kg to 165 kg in 2019-20 at CAGR of 5%, while

in rural areas the consumption is slated to double from 2 kg to 4 kg at CAGR of 4.4 %.

To boost production to a level of 110 Mt by 2019-20, the domestic producers of steel have

announced massive expansion of capacities. In addition, many Greenfield projects have been

planned. Two big global players from abroad, MITTAL ARCELOR, the world’s biggest steel

producer and POSCO of South Korea, globally the fifth largest producer of steel, have also

joined the Indian steel industry’s venture to meet the growth targets. Looking at the world

average per capita steel consumption of 150 kg and the average of 328 kg in developed

countries, the projections of NSP seem to be quite realistic.

2.3 DEMAND AND SUPPLY GAP

Demand for steel is high and as soon as they are processed they will be supplied to nearby

industries.

2.4 EXPORT POSSIBILITY

As the Indian steel industry has entered into a new development stage from 2007-08, riding

high on the resurgent economy and rising demand for steel. Rapid rise in production has

resulted in India becoming the 3rd largest producer of crude steel and the largest producer of

sponge iron or DRI in the world. As the demand is more the export possibility of Sponge Iron

will also be more. As the demand is more the export possibility will also be more.

2.5 DOMESTIC/EXPORT MARKETS

Indian Steel Industry

India was the world’s third-largest steel producer in 2016. The growth in the Indian steel

sector has been driven by domestic availability of raw materials such as iron ore and cost-

effective labour. Consequently, the steel sector has been a major contributor to India’s

manufacturing output. The Indian steel industry is very modern with state-of-the-art steel

mills. It has always strived for continuous modernisation and up-gradation of older plants and

higher energy efficiency levels.

Market Size

India’s crude steel production grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT)

in 2016. Total production of crude steel during February 2017 grew by 8.5 per cent year-on-


9

year to 8.08 MT. India’s steel exports grew 150.0 per cent year-on-year to 0.75 MT in

February 2017, while steel imports declined 46 per cent year-on-year to 0.49 MT. Total

consumption of finished steel grew by 3.4 per cent year-on-year to 76.22 MT during April

2016-February 2017.

Investments

Steel industry and its associated mining and metallurgy sectors have seen a number of major

investments and developments in the recent past.

According to the data released by Department of Industrial Policy and Promotion (DIPP), the

Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$

10.15 billion, respectively, in the period April 2000– December 2016.

Some of the major investments in the Indian steel industry are as follows:

Tata Steel has signed an agreement to purchase a majority 51 per cent stake in Creative

Port Development (CPDPL), which has a concession agreement with the Odisha

government to develop a 10 million-tonnes-per-annum (MTPA) Subarnarekha port at

Chamukh village in Balasore district of Odisha.

Tidfore Heavy Equipment Group, the China-based infrastructure giant, is looking to

enter the Indian market by signing an investment agreement worth US$ 150 million

with Uttam Galva Metallics, to expand its Wardha unit along with South Korean steel

major Posco.

ArcelorMittal SA is looking to set up a joint venture (JV) factory in India with state-

owned Steel Authority of India Ltd (SAIL), to manufacture high-end steel products which

could be used in defence and satellite industries.

JSW Group plans to invest around Rs 10,000 crore (US$ 1.5 billion) at Salboni in West

Bengal to set up 1,320 Megawatt (MW) coal-based power plant, 4.8 million tonne

cement plant and paints factory over a period of next five to seven years.

National Mineral Development Corporation (NMDC) has planned to invest Rs 40,000

crore (US$ 6 billion) in the next eight years to achieve mining capacity of 75 Million

Tonnes Per Annum (MTPA) by FY2018-19 and 100 MTPA by FY2021-22, compared to 48

MTPA current capacity.

Posco Korea, the multinational Korean steel company, has signed an agreement with

Shree Uttam Steel and Power (part of Uttam Galva Group) to set up a steel plant at

Satarda in Maharashtra.


10

ArcelorMittal, world’s leading steel maker, has agreed a joint venture with Steel

Authority of India Ltd (SAIL) to set up an automotive steel manufacturing facility in India.

Iran has evinced interest in strengthening ties with India in the steel and mines sector,

said ambassador of the Islamic Republic of Iran, Mr Gholamreza Ansari in his

conversation with Minister of Steel and Mines, Mr Narendra Singh Tomar.

Public sector mining giant NMDC Ltd will set up a reenfield 3-million tonne per annum

steel mill in Karnataka jointly with the state government at an estimated investment of

Rs 18,000 crore (US$ 2.7 billion).

JSW Steel has announced to add capacity to make its plant in Karnataka the largest at 20

MT by 2022.

The Indian economy is rapidly growing and is emerging as the second largest developing

economy of the world, which has a great impact on domestic consumption of steel as well as

export potential to other countries. As a result of this, the demand for iron & steel remains

extremely good, this would continue for next 10 years if not less, since the per capita

consumption of steel in India is still very low compared to other developed countries. For

rapid development of economy and infrastructure of the country it is necessary to increase

the production of steel within the country. Technology –wise, the modern day Indian steel

industry is a mix of the old and the new, and traditionally, the following groups are identified.

Primary producers:

The integrated steel plants which operate mainly with Blast furnace –Basic oxygen furnace (BF

–BOF) route for producing finished steel.

Secondary producers:

These are the producers operating through routes other than BF – BOF. Generally followed

routes are: (1) Electric Arc Furnace (EAF) and Induction furnace (IF) melting units using scrap,

DRI/ HBI, pig iron etc. in various combinations as input mix, (2) MBF – EAF route where the

charge materials for EAF use about 50% hot metal from MBF making the operation more

economical due to the inherent chemical energy of hot metal. (3) Rest of the charge is DRI

and generated scrap Processors / Rerollers having only the downstream Rolling mills, forging

shops etc which process the semi- finished materials produced by primary and secondary

producers.


11

Primary producers are the four plants of the Steel Authority of India Limited (SAIL), and the

Rashtriya Ispat Nigam Limited (RINL). Both are in public sector and Tata Steel (TISCO), in the

private sector.

Many big producers have also come up in the Secondary sector such as Essar Steel, Ispat

industries, Jindal Strips, Bhushan Steel, JVSL (JSW now) etc.

Production of Steel

Indian steel industry : Production for Sale (in million tonnes)

Category 2011-12 2012-13 2013-14 2014-15 2015-16

Pig Iron 5.37 6.87 7.95 9.69 9.23

Sponge Iron 19.63 14.33 18.20 20.38 14.53

Total Finished Steel (alloy/stainless + non alloy)

75.70 81.68 87.67 92.16 90.98

Source: Joint Plant Committee

The economic reforms and consequent liberalization of Iron & steel sector which started in

1991, brought about a sea change in the industry, particularly setting up of new steel plants in

the private sector. Steel industry was de-licensed and de-controlled in 1991 & 1992

respectively.

India is currently the 3rd largest producer of crude steel in the world.

In 2015-16, production for sale of total finished steel (alloy + non alloy) was 90.98 mt, a

decline of 1.3% over 2014-15.

Production for sale of Pig Iron in 2015-16 was 9.23 mt, a decline of 4.8% over 2014-15.

India was the largest producer of sponge iron in the world during the period 2003-2015

and was the 2 nd largest producer in 2016 (after Iran) . The coal based route accounted

for 89% of total sponge iron production in the country in 2015-16.

2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT

The estimated manpower requirement for the proposed project is 500 numbers (Direct) and

1000 numbers (Indirect).

Efficient management of the unit requires judicious manpower planning, selection of

Qualified and experienced personnel and appropriate organizational structure clearly defining

the functions and responsibility of the managerial and supervisory staff. The manpower


12

requirement in accordance with the targeted production of plant operation has been

estimated on the following consideration:-

1. The estimated production and productivity level which is achievable in various sections of

the plant with the proposed plant and machineries.

2. The total number of personnel required to perform various duties associated with the

different processing steps leading to production of steel billets, Re-rolled Products,

captive power plant and Wheat products.

A preliminary estimate of the manpower requirement for the proposed project are based on

the industry norms taking into account leaves, absenteeism, sickness and holidays for smooth

and efficient operation of the plant. Further, the implementation of industrial laws and

regulations and location factors of labour employment will also have to be considered.

Category wise man power requirement are as under:-

S.No. Department Manager Supervisor Skilled Un-skilled Total

1. DRI Plant 6 30 48 30 114

2. Captive Power Plant 4 14 24 18 60

3. Steel melt shop 6 34 70 40 150

4. Rolling mills 3 15 80 32 130

5. Gen admin 6 12 18 10 46

Total 25 105 240 130 500

Besides above unit creates indirect job opportunities for thousands of people. Various kinds

of skilled and unskilled workers employed in the steel industry all over the country are

majority from U.P. and Bihar. As such getting a chance to work in their own region would be a

big attraction and therefore adequate manpower will be easily available.


13

Chapter – 3 : PROJECT DESCRIPTION 3.1 TYPE OF THE PROJECT




Company intends to

Manufacture 3,30,000 TPA of Sponge Iron by installing 2 x 500 TPD DRI Kilns.

Manufacture 3,56,400 TPA of MS Billets by installing 3 x 30 T capacity Induction

furnace with 1 x 35 T Ladle Refining Furnace (LRF) and 1 x 3 strand Continous caster.

Manufacture 3,56,400 TPA of MS Re-Bars (TMT) and Section / structural steel by

installing 1 x 800 TPD & 1 x 280 TPD Rolling mill.

Power generation of 24 MW through Waste Heat Recovery from 2 x 500 TPD DRI Kilns

by installing 2 x 50 TPH WHRB boiler.

Power generation of 26 MW through 1 x 110 TPH CFBC based boiler.

3.2 LOCATION OF THE PROJECT

Project location is Plot No. AL-2, Sector 23, GIDA Industrial Area, Village Sahbazganj &

Domharmafi, Tehsil Sahjanwa, District Gorakhpur, Uttar Pradesh.

79 acres (32 Ha.) of land is envisaged for the proposed project and same is taken on

lease from GIDA.

The project area will span between Latitude 26°45'14.37"N - 26°45'45.68"N &

Longitude 83°12'6.95"E - 83°12'27.53"E.

The entire project area will fall in the Survey of India topo sheet no. G44L5.

Coordinates of the project site are shown below:

Point No. Coordinates

1. 26°45'44.96"N 83°12'15.95"E

2. 26°45'45.74"N 83°12'27.76"E

3. 26°45'36.36"N 83°12'30.96"E

4. 26°45'14.41"N 83°12'8.69"E

5. 26°45'24.27"N 83°12'6.78"E


14

Figure – 1 : Google Earth Map showing boundary of the project site


15

Project Site

Figure – 2 : General Location map


16


17


18

3.3 DETAILS OF THE ALTERNATE SITES

No alternate site has been considered for the present proposal, as the location is in the state

notified Industrial Area, Gorakhpur Industrial Development Authority (GIDA) and total land of

79 acres (32 Ha.) has already taken on lease from GIDA.

3.4 SIZE OR MAGNITUDE OF OPERATION

S.No. Units Plant Configuration

(Production Capacity)

1. DRI Kilns (Sponge Iron)

2 x 500 TPD (3,30,000 TPA)

2. Induction Furnace with Concast (MS Billets/Hot metal for hot charging) along with 1 x 35 T Ladle Refining Furnace (LRF) & 1 x 3 Strand Billet Caster

3 x 30 T (3,56,400 TPA)

3. Rolling Mill [MS Re-Bars (TMT) and structural steel]

1 x 800 TPD & 1 x 280 TPD (3,56,400 TPA)

4. Power Plant (Electricity) (50 MW)

WHRB - 2 x 50 TPH 24 MW

FBC - 1 x 110 TPH

26 MW

3.5 MANUFACTURING PROCESS

3.5.1 DRI KILN BASED SPONGE IRON PLANT

It is proposed to install 2 DRI Rotary Kiln of 500 TPD capacities. The capacity of the DRI unit

will be 3,30,000 TPA. The process for the production of sponge iron consists of the reduction

of iron ore / pellets with solid carbonaceous material (coal/coke/lignite) in a rotary kiln at

high temperature, cooling to room temperature in the rotary cooler with indirect water

cooling system, screening and magnetic separation of the product. Sponge iron being

magnetic gets attracted and separated from the non-magnetic char. The Kiln is inclined at 2°

approximately. In the process for the production of sponge iron, the raw materials (iron ore /

pellets, feed coal and lime stone /dolomite) are fed to the rotary kiln through feed tube in a

pre-determined ratio by electronic weighing equipment. Rotary kiln is rotated by an AC

variable speed motor at a steeples variable speed ranging from 0.2 to 1.0 rpm. Due to

inclination and rotary motion of the kiln the material moves from the feed end of the kiln to

the discharge end in approximately 12 hrs. (Tendency time). The fine coal is blown counter

currently from the discharge end of the kiln to maintain the required temperature and the

carbon concentration in the bed. The kiln has seven shells air fans mounted on the top which


19

blow air in the respective zones to maintain the required temperature profile. The material

and the hot gasses move in the counter current direction and as a result Iron Ore / pellets

gets pre-heated and gradually reduced by the time it reaches the discharge end.

The kiln is divided into two zones namely pre-heating zone and reduction zone. The pre-

heating zone is normally 30% of the total length of the kiln and the rest is taken as the

reduction zone. The material gets heated to the reduction temperature in the pre-heating

zone up to 500°C, the iron ore / pellets, coal and limestone gets dried and all the moisture is

vaporised. Thereafter, the material moves to reduction zone. In reduction zone, the iron ore/

pellet is deoxidized where the magnetite is reduced to metallic iron. Temperatures are

maintained at around 10000C in this zone to enable the de-oxidization of the Iron ore/ Pellet.

Coal contains sulphur in it. During the decomposition of the coal the sulphur is released in the

form of Iron sulphide. The iron sulphide (FeS) has deleterious effect in the steel making and is

to be removed. So limestone is used to prevent the sulphur pick up by the sponge iron. All the

above reactions are possible only in the presence of CO. The generation of the CO is most

important reaction, which is called the Boudard reaction. This reaction is highly endothermic

which is also reversible. The conditions favourable for the forward reaction i.e. the generation

of CO is:

The higher temperature favours the production of CO.

The concentration of the reactants has to high so that the forward reaction occurs.

Low pressure favours the CO generation.

Oxygen required for the burning of these combustibles is supplied from the air tubes placed

along the length of the kiln. By controlled combustion, the temperature in the various zones is

maintained so that the reduction is proper and to sufficient degree. The reduction of iron

ore/pellet is topo-chemical i.e. the reduction proceeds from the surface to the core. The iron

ore/pellet on partial reduction has all the different stages of the reduction. The hot material

after the reduction is complete is then transferred to the rotary cooler via the transfer chute.

The rotary cooler is made up of Mild Steel shell. It is inclined at 2° approximately and rotates

at variable speed from 0.2- 1.2 rpm. It is driven by an AC variable speed motor. The water is

sprayed on the top of the shell, which cools the material inside the cooler indirectly. The heat

from the material is extracted by the shell. In order to increase the surface area for the heat

extraction fins are welded inside. Complete shell is covered by thin layer of water. The heat is

transferred from the shell to the water by convection. By this the material gets cooled to


20

80oC and is discharged on the belt conveyor by the double pendulum valve. The double

pendulum valve acts as the seal for the prevention of the atmospheric air into the kiln cooler

system. The total kiln cooler system is kept under positive pressure. This prevents the

atmospheric air from getting into the system. The kiln has to be always operated on positive

pressure, as any leakage into the system will cause the re-oxidation of the sponge iron

thereby causing the drop in the quality of the product. The material after the discharge from

the cooler is dropped on to the cooler discharge conveyor. A diversion chute is provided at

the head end of this conveyor for diversion of the material in case of break down in the

production separation. The material is then sent to the product separation system. In product

separation system consisting of double deck screen, the material is screened to 0-15 mm size

fractions. The oversize i.e. +20 mm obtained is small quantity so it is taken on the floor or

diverted to the sponge iron bin. The 0-3mm size fraction is called the fines are fed to a drum

type magnetic separator where the magnetic sponge iron fines and the non-magnetic

dolochar separated and fed to the respective bins through the chutes and conveyor. The

coarser fraction is similarly separated by another magnetic separator and fed to respective

bins. This magnetic fraction is called the sponge iron lumps and the non- magnetic as dolochar

which is the unburned coal. This dolochar acts as a fuel for our captive power plant. As such, it

is transferred to power plant through conveyors and is consumed along with coal in there

boiler to generate power. The gasses, which flow in the counter current direction of the

material, go to the dust-settling chamber where the heavier particles settle down. These

particles are continuously removed by the wet scrapper system. The gasses then pass to the

After Burner Chamber (or Post Combustion Chamber – PCC) where the residual carbon or CO

is burned by the excess air available. The gasses are at high temperature and have lot of heat

energy, which shall be utilized for the power generation through the waste heat recovery

boiler. The hot gasses after the heat recovery boiler get cooled to below 200°C. The gases are

then cleaned passing the gasses to ESP (Electrostatic precipitator). This clean gas at a

temperature of below 90 degree centigrade is passed into the atmosphere through the

chimney.


21

3.5.2 STEEL MELTING SHOP

It is proposed to install 03 Induction Furnace with a capacity of 30 MT/Heat, these Furnaces

are based on new power savings technology. The Annual capacity of the Steel Melt Shop unit

will be 3,56,400 TPA having Induction Furnace route along with Ladle Refining Furnace and

continuous casting machine.

Selection of Equipment:

Medium Frequency Induction Furnace

Plant will have 3 Nos. Induction Furnaces and these will utilize:-

1. M. S. Scrap / C. I. Scrap / Pig Iron – 21.50%

2. Continuous Feeding of DRI – 78.50%

Melting and Tapping from Induction Furnace – 120 Min. (12 Heats / Day)

The induction melting technology has brought a significant revolution where it has been

proved that the steel produced out of sponge iron mixed with Cast Iron and M.S. Melting

Scrap/Pig iron coupled with electric induction furnace, medium frequency, constant power

track has become formidable process and can offer better economics at a relatively smaller

scale operations. The process involves the charge mix of Raw material mainly Sponge Iron, C.

I. Scrap / M. S. Scrap, into molten bath with constant power track through Solid State


22

generator converting A.C. Power into D.C. Power and again to convert the same into A.C.

Power after changing the frequency of cycle in between 250 to 500 HZ through thyresters (an

electronic device). This converted A.C. power with a frequency of 250 to 500 HZ is passed

through capacitor Rack after achieving the de-sired voltage and the same is passed through

copper Bus Bar into Molten bath having copper coil, cooled through water circulation,

transparent the heat energy into molten bath at constant voltage to melt the Iron and Steel at

a temperature of 1625°C. The continuous effort made by technologists has led to the

development of the process parameters by which considerable quantity of sponge iron are

used in steel making. This has brought a new era in steel melting technology in the country

where scrap scarcity can no more be a threat to the mini steel plants.

Ladle Refining Furnace (LRF)

One no. 35 t capacity ladle refining furnace for treatment and refining of liquid steel tapped

from induction furnaces will be installed

Main Functions of Ladle Furnace

Alloying and heating of steel

Homogenization of chemistry

Homogenization of temperature

Desulphurization & inclusion control

To serve as a buffer between IF and caster in case of emergency

Continuous Casting Machine:

Liquid Metal from Induction Furnace is carried in a ladle over the Concast Machine. The liquid

metal flows from the ladle through a slide gate system underneath it into water cooled

copper mould tubes which solidifies the liquid metal into a square shaped mould which we

call as M.S. Billets. From the considered casting cycle time, the number of strands required to

cast 100 mm sq. to 200 mm sq. billets is worked out to be three (3). Based on the above, 3 –

strand billet casting machine suitable for casting up to 200 mm sq was selected. The caster is

6/11 meter radius.


23

3.5.3 ROLLING MILL

It is proposed to install 1 x 800 TPD & 1 x 280 TPD Rolling Mills for manufacture of TMT bars

and Section / Structural Steel of a annual capacity of 3,56,400 TPA. The proposed mill will be

designed as per the latest layout with stands in length, so as to enable higher productivity and

better quality. In the Hot rolling process MS Billets are rolled into TMT bars by passing

through a number of stands as per the Final size (Dia) required. Finally the bars are cut into 12

M length and bundled size wise for checking & dispatching.

In the proposed plant Majority of the materiel (MS Billet) will not require re-heating as they

will be fed to rolling directly from the CCM in hot state, some materiel will be required to be

Re-Heated for which a suitable capacity Reheating Furnace is proposed. The proposed mill will

be able to manufacture TMT of size 8 MM to 40 MM and various range of Section / Structural

Steel.


24

PRODUCER GAS (Coal Gasifier)

It is proposed to install Coal gasifier to produce 5544 Nm3/hr of Producer gas. Coal will be required as

fuel in Gasifier.

Coal is lifted to the coal storage bin by lifting system; the coal is added in the carbonation stage of

two-stage coal gasifier by a programmable control feeding system. Air is blown in the bottom of

furnace by air blower, at the same time, low pressure steam goes through the blending bin and blends

with air, becomes the gasification agent, which will carry on the gasification reaction with 1200 Celsius

degree semi coke in the gasification stage.

Producer gas is made by the gasification agent, which is mixture of steam and air, which goes through

red-hot fixed burning bed. The oxygen content in the air and steam react with the carbon in the fuel;

generating the producer gas which has ingredients like CO, CO2, H2, CH4, C2H4, N2 etc.

Reaction of steam and carbon is endothermic reaction:

C + H2O= CO + H2

When oxygen and carbon react, and then heat output:

2C + O2 =2CO

C + O2 = CO2

Some steam here reacts with carbon monoxide:

CO + H2O = CO2 + H2

In the reducing zone, quick reaction is occurred when the temperature is below 1200 Celsius degree

CO2 + C = 2CO and

H2O + C=H2 + CO

When the coal gas goes through the reducing zone, flammable gas content raises rapidly, carbon

dioxide and steam content decrease. Across the reducing zone, a part of coal gas is withdrawn through

a series of vents in the gasifier walls and is called “DOWN STAGE GAS”.

Its temperature is around 300-400 Celsius degree and container dust and ash particles.

This down stage gas is treated in the cyclone to remove the dust particles, and is then cooled through

a heat exchanger. In this heat exchanger the heat is given to the water in the steam drum. The gas is

further cooled in a wind cooler, where natural air cools the gas to a lower temperature.


25

In the carbonation stage, the coal added in the gasifier are dried, preheated and carbonated, generate

steam, tar and coal gas, exported from the top of gasifier together, this part of gas is called “up-stage

coal gas”, its temperature is around 100-120 Celsius degree.

The temperature of upstage coal gas is about 100-150 Celsius degree, goes into Electric detarrer to

remove tar. Water and tar come from the bottom of Electric Detarrer is sent to the tar tank.

The Upstage and downstage coal gas are mixed in the entrance of indirect cooler, the temperature

after mixing and cooling in the indirect cooler is 35-40 Celsius degree.

The coal gas pressure adder increases the pressure of the coal gas to the desired value and then

connects to the transmitting coal gas pipelines which take the gas to the equipment.


26

3.5.4 POWER PLANT

It is proposed to install 26 MW CFBC and 24 MW WHRB based power plant. The Company

proposes installation of 01 number of 110 TPH CFBC boiler which will generate 26 MW of

Power and 02 number of 50 TPH WHRB Boiler which will generate 24 MW of power making a

total capacity of 50 MW. The proposed CPP consist of 02 waste heat recovery boiler of 50 TPH

steam generation capacity and one Circulating Fluidised Bed Combustion Boiler (CFBC) of 110

TPH. Company will be installing turbine (Turbo Generator) of the matching capacity to the

boilers to produce the total 50 MW of Power.

WHRB Power Plant

The waste heat recovery boiler of both the Kilns will generate about 50 TPH of steam each

with the outlet parameters of 110 Ksc(a) and 640 Deg. C., while taking in the feed water at

160° C from the de-aerator. The entire waste gas from the sponge iron kiln will be utilized in

the waste heat boiler for the steam generation.

Total 100 TPH of steam generated in the boilers is fed to the main steam line. About 0.25 TPH

of steam is used for the ejector and turbine gland sealing after pressure and temperature

reduction to 235 Deg.C. Around 0.096 TPH of feed water is used as spray. 68.36 TPH of steam

is fed to the extraction cum condensing turbine. The uncontrolled extraction from the turbine

at 6.5 Ksc (a) gives 6.26 TPH of steam approximately at a temperature of 231 Deg.C. This

steam is used in the de-aerator, for heating up the feed water to temperature of 160 Deg.C.

CFBC Power Plant

Fluidised bed combustion is a “Clean Technology for a better tomorrow” where technology

and economy have been interwoven harmoniously in quest of a better environment. The

environmentally friendly perspective of this technology is as follows:

1. At the low combustion temperature of 850°C / 900°C, no Nitrogen Oxides result from the

Nitrogen in the combustion air, with the end result of extremely low Nox emissions even

with fuels rich in Nitrogen.

2. Formation of SOX is essentially prevented by the addition of limestone. This is both mixed

into the fuel and blown into the combustion chamber. Due to the favourable conditions in

the fluidized bed, about 90% of the resulting Sulphur Oxides can be removed.

3. Better Plant flexibility at partial loads of about 25% and quick load changes.


27

4. Low Auxiliary Power consumption compared to other coal fired Boiler versions.

The Steam Generator would be semi-outdoor type, natural circulation, and balanced draft,

Single drum, designed for firing different grades of coal. The Boiler is of bubbling fluidised bed

type to handle even high ash coal. Capacity of FBC coupled with adjacent WHRB has been

selected to ensure adequate margin over the requirement of turbine at 100% MCR. FBC

would be designed to operate with “The HP heaters out of service” condition (resulting in

lower feed water temperature at Economizer inlet) and deliver Steam to meet the Turbo-

Generator requirement at 100% MCR. Economizer section of the Boiler would be non-

Steaming type. Super heater sections would be convection type and designed so as to

maintain rated Steam temperature of 540°C (:i: 5°C) at super heater outlet over the control

range of 60% to 100%, MCR. Attemperator is provided at the outlet of convection super

heater for temperature control at Steam Generator outlet. The Boiler furnace and flue gas

passages would be designed for appropriate low velocities in order to minimize erosion.

Suitable balanced draft System would be provided for the Steam Generator with one forced

draft and one induced draft fans. Each of these fans would be capable of meeting the air

requirement at 100% Boiler MCR load. The forced draft fans would be radial type with inlet

vane control for regulation of airflow. The induced draft fans would be radial type with multi

louver damper control the regulation. The forced draft fans would control total air flow to

Boiler and the induced draft fan would control furnace draft of the Boiler through automatic

control loops. In addition to the FD fan, one primary air fan of 100% capacity shall be provided

for transportation of fuel. The Boiler would be top supported type and would be provided

with all supporting Steel platforms, galleries and stairways for easy approach and

Maintenance of the Unit. Adequate weather protection would be provided for instruments

and operating personnel. Necessary insulation along with skin casing to limit outside surface

temperature to the safe level would be provided.

Steam Turbine Generators and Auxiliaries

Steam Turbine

The Steam Turbine will be of condensing type. The set will be complete with Condenser, Air

Evacuation System, 100% Condensate Extraction Pumps, Generator Cooling, System, Gland

Sealing with Gland Vent Condenser, Lube Oil System, LP & HP Re-generative Feed Heaters,

etc.


28

Excitation System

The Excitation System envisaged will be brush-less type. The Excitation System shall be

capable of Supplying the Excitation Current of the Generator under all condition of Operation

of Load, Voltage and Power. Rated current and Voltage of the Exciter shall be at least 120% of

normal Excitation Current and at least 110% of no Load Excitation Voltage with maximum of

140% ceiling. The Exciter response ratio shall be greater than 1.5. The Field Breaker and Field

Suppression System will also be part of Exciter System. Automatic high speed Thyristorised,

Auto Manual AVR capable of maintaining Steady State Terminal Voltage within :I: 0.5% of the

present Value under all Operating Conditions and capable of smooth and continuous running

over the Operating Range. The Generators shall be provided with Temperature Detector

embedded at different location, i.e. Stampings, Stator Windings, etc.

Water cooled condensers envisaged for Power plant, The region is categorized as “Safe” by

the CGWA.

3.6 RAW MATERIAL REQUIREMENT

The following will be the raw material requirement for the proposed project:

S.No. Raw Material Quantity

(TPA)

Source Mode of Transport

For DRI Kilns (Sponge Iron) – 3,30,000 TPA

1. Iron Ore 2,64,000 Orrisa, NMDC By Rail

2. Iron Ore Pellets 2,64,000 Orissa By Rail

3. Coal Indian Coal 4,29,000 Jharkhand By Rail

Imported Coal 2,97,000 Indonesia / South

Africa / Australia

Through sea route & Rail

4. Dolomite 16,500 Local Area By road

(through covered trucks)

For Steel Melting Shop (MS Billets) – 3,56,400 TPA

1. Sponge Iron 3,00,000 Own generation ----

2. MS Scrap / Pig Iron 1,30,000 Local Area By road


3. Ferro alloys 5,300 Local Area By road


For Rolling Mill (TMT bars & Structural Steel) – 92,400 TPA (1 x 280 TPD)

1. MS Billets 1,00,000 Own generation

&

Chattisgarh, West

Bengal, Local Area

----

By Rail / Road



29

S.No. Raw Material Quantity

(TPA)

Source Mode of Transport

2. Furnace oil 4620 Local Market By road


3. Coal

(for

Gasifier

5544

NM3/Hr.)

Indian Coal 18480 Jharkhand By Rail

Imported Coal 11830 Indonesia / South

Africa / Australia


For Rolling Mill (TMT bars & Structural Steel) – 2,64,000 TPA

(through hot charging) 1 x 800 TPD

1. Hot metal 2,64,000 Own generation ----

For CFBC Boiler - Power Generation 26 MW

1. Dolochar 99,000 Own generation ----

2. Coal Indian Coal 1,40,400 Jharkhand, UP,

MP

By rail

Imported Coal 90,000 Indonesia / South

Africa / Australia


3. Rice Husk 40,000 Local Market By road


Specifications of Raw Materiel

Imported coal FC : 56% Ash – 16% VM – 24% IM – 3% Cv – 6500 kcal / kg

Iron ore Lump Fe : 63.5%(±0.5%) SiO2 : 1.9 (±0.3%) Al2O3 : 2.0%(±0.3%) S:0.02-0.025% P:0.04-0.05% Size : 10-30 mm

Dolomite CaO – 26-28% MgO – 18-20% SiO2 – 4% (max) Al2O3 – 0.8 – 1% LOI – 45%

Indian coal for CPP

FC – 34.7% Ash – 38.6% VM – 20.7% IM – 6% CV – 4000 kcal/kg


30

Pig Iron C:3.0-3.6%; Mn :0.4-1.0%; Si:0.5-1.2%; P:0.06-0.09% Max; S:0.02-0.04% Max, Fe:90-92%

Scrap C:0.05-0.35%; Mn :0.1-0.6%; Si:0.1-0.5%; P:0.02-0.04%; S:0.01-0.02%, Fe:92-95%

Potential Supplies -

Iron ore from Orissa & Jharkhand

Iron Ore Pellets from reputed manufacturers like Jindal Steel Limited, Bhushan Power

& Steel Limited, Jindal Saw Limited, Orissa Manganese & Minerals etc

Coal for DRI plant will be imported through reputed importers like Adani Global Pte

Limited, Sawaogi Global Pte Limited, Swiss Singapore Overseas etc.

Indian Coal for power plant will be sourced from auctions of Eastern Coal Fields

Limited (ECL) and Northern Coal Field Limited (NCL) and suppliers like Adani

Enterprises & Agarwal Coal Corporation.

Dolomite from Rajasthan & Madhya Pradesh

Pig Iron from Shree Nakoda Ispat Ltd and other suppliers of repute

Silico manganese from Indsil Energy & Electro Chemicals Limited and other suppliers

of repute

Majority of materiels (Iron Ore / Iron Ore Pellets & Coal) will be procured by Rail, the

compay proposes to build a provate rail siding within the plant premise and some materiel

will be procured through Covered Trucks.


31

3.7 WATER REQUIREMENT AND ITS SOURCE

Water required for the proposed project will be 200.00 cum/hr or 4,800.00 KLD and same will

be sourced from Ground Water source. Necessary permission will be obtained from the

Ground Water Department. Following is the break up of water requirement:

Make-Up Water Requirement

S.No. Facilities Cum /

hr. KLD

1. DRI Plant 60.00 1,440.00

2. Induction Furnace 15.00 360.00

3. Ladle Furnace 2.50 60.00

4. Continuous casting machine 7.50 180.00

5. Bar Mill 15.00 360.00

6. Power Plant(kWh) 90.00 2,160.00

7. Plant drinking water, sanitation, horticulture 3.00 72.00

8. Fire fighting 5.00 120.00

9. Misc 2.00 48.00

Total 200.00 4,800.00

3.8 WASTEWATER GENERATION & ITS MANAGEMENT

There will be no effluent generation in the DRI plant, SMS, Rolling Mill as closed circuit

cooling system will be adopted.

Effluent from power plant will be treated and after ensuring compliance with SPCB norms,

it will be utilized for dust suppression, ash conditioning and for greenbelt development.

Sanitary waste water will be treated in septic tank followed by sub-surface dispersion

trench.


32

3.9 SOLID WASTE GENERATION AND ITS MANAGEMENT

Generation

The source of generation of these wastes are steelmaking process itself and can be mainly

categorized as slag, dust, scrap, broken refractories, scale, sludge, etc. These waste materials

have a wide range of impact on the environment.

S.No Solid Waste / By Product

Quantity (TPD)

Method of disposal

1. Ash from DRI 300 Will be given to Cement Plants & Brick manufacturers.

2. Dolochar 300 Will be used in FBC power plant as fuel.

3. Kiln Accretion Slag 9 Will be used in road construction & given to brick manufacturer.

4. Wet scrapper sludge 46 Will be used in road construction & given to brick manufacturer.

5. SMS Slag 108 Slag from SMS will be crushed and iron will be recovered & then remaining non -magnetic material being inert by nature will be used as sub base material in road construction/brick manufacturing

6. Mill scales from Rolling Mill

54 Will be reused in the Steel Melting Shop

7. Ash from Power Plant (with Indian Coal)

210 Ash generated is being given to Cement Plants / Brick Manufacturers

Management

Waste management practice involves collection, transportation, processing, recycling or

disposal of waste material.


33

3.10 POWER REQUIREMENT

During Construction Phase

Power requirement for the proposed project will be met from State Electricity Board during

construction phase.

During Operation Phase

The total power requirement for the proposed project will be 55 MW, this will be met mainly

with captive power plant of 50 MW (i.e. 24 MW WHRB and 26 MW CFBC based power plant),

A load of ~10 MW is proposed to be procured from the state grid i.e. Purvanchal Vidyut Vitran

Nigam Limited (PuVVNL).

Following is break up of power requirement:

S.No. Unit Power Consumption Power Requirement

1. DRI (3,30,000 TPA) 115 Kwh/ton 4.0 MW

2. SMS (3,56,400 TPA) 700 Kwh/ton

10 MW x 3 Furnace 30.0 MW

3. Concast & Aux. LS 3.5 MW

4. Rolling Mill (3,56,400 TPA) 150 Kwh/ton 7.5 MW

5. Power Plant – WHRB (24 MW) Aux. Consumption @ 10% 2.4 MW

6. Power plant – CFBC (26 MW) Aux. Consumption @ 10% 2.6 MW

7. Misc LS 5.0 MW

Total

55 MW


34

Chapter – 4 : SITE ANALYSIS 4.1 INFRASTRUCTURE

For establishment and successful operation of plant, it is imperative to ensure availability of

the following infrastructure:

Availability of raw coal & iron ore and its proximity to the plant to reduce cost of

transportation.

Road / Rail head connection so that the raw materials and products can be easily and

economically transported.

Availability of water.

Permanent and reliable source of power.

Adequate land for the plant, storage of raw material and products & disposal of waste

material.

4.2 CONNECTIVITY

The proposed site is well connected with Road network. The following table gives brief

regarding connectivity of the proposed site:

Component Description

Road : Project site is located adjacent to NH # 28.

Rail : Nearest station – Sahjanwa Railway Station – 0.6 Kms.

Air : Gorakhpurt Airport – 22.0 Kms.


35

Below mentioned table gives brief regarding environmental setting of the project site

S.No Particulars Distance from the site

1. Habitation = Vill. Sahbajganj, Sahjanwa (adjacent to site)

2. National Park = No National Park is situated within the 15 km radial distance periphery

3. Wild life sanctuaries = Nil

4. Eco Sensitive Areas = Nil

5. Forests = Nil

6. Surface water bodies = Rapti River – 3.5 Kms. Aami River – 4.2 Kms.

7. Costal Regulation Zone [CRZ] = Nil

4.3 LAND DETAILS



79.0 acres (32.0 Ha.) of land is envisaged for the proposed project and same is taken

on lease from GIDA.



36

Chapter – 5 : PLANNING BRIEF 5.1 PLANNING CONCEPT




In view of the tremendous market potential of iron & steel products promoters have decided

to set-up an Integrated Steel Plant with Captive Power Plant. This project shall consist of

production of Sponge Iron (DRI), Steel Billets, Re-rolled products (TMT Bars and Section /

structural steel) with Captive Power Plant. Integration and Captive power will make the

project profitable and make it financially more viable. The in-house consumption of sponge

iron for manufacturing of billets, which would further be rolled into TMT bars and captive

power plant utilizing the waste heat rejects from the sponge iron would improve the overall

profitability of the project. The modules of the projects are as follows:

S.No. Division Rational

1. DRI

(Sponge Iron)

To produce sponge iron by installing 02 Rotary Kiln with a

capacity of 500T/Day, Assuming 330 Working days in a

year the final capacity comes to 3,30,000 TPA. This

production of Sponge Iron will be utilized in the in-house

Steel Melt Shop (Induction Furnace with Continuous

Casting) to produce Steel Billets. Further, the waste heat

of sponge iron kilns shall be utilised by the captive power

plant for power generation up to 24 MW

2. Steel Melting Shop

(MS Billet/Hot metal

for hot charging)

To produce Steel Billets by installing 03 Induction

Furnaces of 30 T/Heat, 1 x 35T Ladle Refining Furnace

(LRF) & 1 x 3 Strand Billet Caster. Considering 12 Heats

per day with 330 working days in a year the capacity

comes 3,56,400 TPA. This production will be further used

to meet the requirements of the In – House Rolling Mill.

3. Rolling Mill

Rebar Mill and Section

/ Structural Mill

(MS Re-Bars &

Structural Steel)

To manufacture MS Re-Bars (TMT) and Section / structural

steel by installing 1 x 800 TPD & 1 x 280 Rolling Mill.

Considering 330 working days in a year, the capacity

comes to 3,56,400 TPA. This will be the final finished

product of the proposed unit. The proposed mill will be

set up on the concept of Hot Rolling of the Billets from the

Continuous Casting Machine to save power. For some


37

S.No. Division Rational

balance materiel which could not be Hot-Charges a Re-

Heating Furnace will be installed

4. Captive Power Plant

To generate captive power for the entire project

requirement of 50 MW and efficient utilization of waste

heat (Gases) and solid waste (Dolochar) coming out from

DRI kilns. This will reduce the overall cost of power

significantly. Entire power shall be consumed by the unit

itself. A 50 MW Turbo Generator (TG) will be installed

with 24 MW WHRB (2 x 50TPH) and 26 MW CFBC Boiler (1

x 110TPH). The above shall fulfil almost the entire need of

power of the proposed project.

5.2 POPULATION PROJECTION

Gorakhpur city is governed by Municipal Corporation which comes under Gorakhpur

Metropolitan Region. The Gorakhpur city is located in Uttar Pradesh state of India.

As per provisional reports of Census India, population of Gorakhpur in 2011 is 673,446; of

which male and female are 353,907 and 319,539 respectively. Although Gorakhpur city has

population of 673,446; its urban / metropolitan population is 694,889 of which 365,405 are

males and 329,484 are females.

Hinduism is majority religion in Gorakhpur city with 77.88 % followers. Islam is second most

popular religion in city of Gorakhpur with approximately 20.61 % following it. In Gorakhpur

city, Christinity is followed by 0.74 %, Jainism by 0.04 %, Sikhism by 0.18 % and Buddhism by

0.18 %. Around 0.01 % stated 'Other Religion', approximately 0.48 % stated 'No Particular

Religion'.

In education section, total literates in Gorakhpur city are 506,694 of which 281,118 are males

while 225,576 are females. Average literacy rate of Gorakhpur city is 83.91 percent of which

male and female literacy was 88.67 and 78.65 percent.

5.3 LAND USE PLANNING



79.0 acres (32.0 Ha.) of land is envisaged for the proposed project and same is taken

on lease from GIDA.



38

Following is land use statement:

S.No. Units Area

(in Acres)

1. DRI Kilns along with WHRB 8.0

2. Induction Furnace with Concast along with Ladle Refining Furnace (LRF) & Strand Billet Caster

3.5

3. Rolling Mill 4.0

4. Power Plant 8.0

5. Storage area (Raw Material, Product & Solid Waste)

10.0

6. Parking area 1.0

7. Internal Roads 5.0

8. Water Reservoir & RWH 1.0

9. Railway Siding 5.0

10. Admin Building 0.5

11. Greenbelt area 27.0

12. Mics. 6.0

Total 79.0

5.4 AMENITIES / FACILITIES

Facilities like canteen, rest room, first aid, parking will be provided as basic facilities to

workers. Railway siding is proposed in the present proposal.


39

Chapter – 6 : PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA (PROCESSING AREA)

The main plant area comprises of DRI Kilns, Furnace sheds, Rolling mill area, Railway siding,

raw material storage and product storage etc.

6.2 RESIDENTIAL AREA (NON PROCESSING AREA)

No colonization is proposed; however, facilities like canteen, rest room and indoor games

facilities will be provided in the proposed plant and one Admin building is also proposed.

6.3 GREEN BELT

1/3rd of total land availability is reserved for plantation i.e. greenery.

Greenbelt development plan

Local DFO will be consulted in developing the green belt.

Greenbelt of 33% of the area will be developed in the plant premises as per CPCB

guidelines.

The tree species to be selected for the plantation are pollutant tolerant, fast growing,

wind firm, deep rooted. A three tier plantation is proposed comprising of an outer

most belt of taller trees which will act as barrier, middle core acting as air cleaner and

the innermost core which may be termed as absorptive layer consisting of trees which

are known to be particularly tolerant to pollutants.

6.4 SOCIAL INFRASTRUCTURE

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

the project.


40

6.5 CONNECTIVITY

The proposed site is well connected with Road network. The following table gives brief

regarding connectivity of the proposed site:

Component Description

Road : Project site is located adjacent to NH # 28.

Rail : Nearest station – Sahjanwa Railway Station – 0.6 Kms.

Air : Gorakhpur Airport – 22.0 Kms.

A private Rail Siding will be made within the plant premise from the NER Rail track adjacent to

the site for inward raw materiel.

6.6 DRINKING WATER MANAGEMENT

It is estimated that 10 KLD of water will be required for domestic purpose during operation of

proposed project.

The desired amount of water will be Sourced from Ground water sources.

6.7 WASTEWATER GENERATION & ITS MANAGEMENT

There will be no effluent generation in the DRI plant, SMS & Rolling Mill as closed circuit

cooling system will be adopted.

Effluent from power plant will be treated and after ensuring compliance with SPCB

norms, it will be utilized for dust suppression, ash conditioning and for greenbelt

development.

Sanitary waste water will be treated in septic tank followed by sub-surface dispersion

trench.


41

Chapter – 7: REHABILITATION & RESETTLEMENT (R & R) PLAN

No rehabilitation and resettlement is required for the proposed project, as the proposed project

site is located in notified GIDA Industiral area.


42

Chapter – 8 : PROJECT SCHEDULE & COST ESTIMATES

8.1 PROJECT SCHEDULE

The installation of several production units along with utilities and services require

cooperation for procurement of equipment, equipment foundations, award of all contracts

and supervision of all construction jobs at plant site. The project implementation schedule has

been drawn up to maintain a strict time schedule. The factors which are responsible for

timely implementation of the project are :-

1. Arrangement of proper finance for the project.

2. Finalization of layout of the proposed plant.

3. Design of utilities and services.

4. Placement of orders for plant and machinery.

5. Arrangements for Govt. sanctions and supply of power.

6. Recruitment of personnel.

Construction materials

It is envisaged that cement, reinforcing steel and structural steel materials, sheets will be

procured by the company and issued to the contractors free of cost or at agreed recovery

rates. For this, advance action has to be initiated by the company so that these materials are

sufficiently stored in adequate quantity before commencement of the work at site. All other

construction materials will be procured by the contractors or as per terms decided.

Construction facilities

Construction facilities will mainly include providing infrastructural arrangement like water,

power, road, drainage storages etc. Company proposes that entire construction shall be done

by a competent civil contractor. The Installation of plant & machinery will carried on by the

suppliers and their competent Vendors. Fabrication work will be carried out on-site by

suitable contractors.

Proposed Project will be implemented in 48 months from the date of receipt of

Environmental Clearance from the MoEF&CC, New Delhi & Consent from SPCB.


43

8.2 PROJECT COST

The cost of project has been estimated on the following basis:

a) Working experience of the company.

b) Facilities set up recently in India.

c) Information’s collected from published sources of new units/under construction.

d) Estimates made by technical experts having specialized experience in this field.

e) Market information.

The Total Estimated Cost of the proposed project will be Rs. 330 Crores. Following is the break

up:

S.No. Unit / Details Estimated Cost

(Rs. In Crores)

1. DRI Kilns

[2 x 500 TPD - 3,30,000 TPA]

100.0

2. Induction Furnace with Concast (MS Billets/Hot

metal for hot charging) along with 1 x 35 T Ladle

Refining Furnace (LRF) & 1 x 3 Strand Billet Caster

[3 x 30 T - 3,56,400 TPA]

30.0

3. Rolling Mill

[1 x 800 TPD & 1 x 280 TPD - 3,56,400 TPA]

35.0

4. Power Plant

[24 MW WHRB based & 26 MW FBC based]

150.0

5. Other Miscellenous activities (i.e. Railway Siding,

Stock Yard, Water Reservoir, Stores/Canteen,

Internal Roads & Greenbelt)

9.0

6. For Occupational Health & Risk Assessment 1.0

7. For Corporate Envirnment Responsibility (CER) as

per OM F.No.22-65/2017 dt. 1st May 2018

5.0

Total 330.0


44

Chapter – 9 : ANALYSIS OF PROPOSAL

9.1 FINANCIAL AND SOCIAL BENEFITS

With the implementation of the proposed project, the socio-economic status of the local

people will improve substantially. The land rates in the area will improve in the nearby areas

due to the proposed activity. This will help in upliftment of the social status of the people in

the area. Educational institutions will also come-up and will lead to improvement of

educational status of the people in the area. Primary health centre will also be developed by

us and the medical facilities will certainly improve due to the proposed project.

9.2 SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES

The management is committed to uplift the standards of living of the villagers by undertaking

following activities / responsibilities as the part of Corporate Social Responsibility.

Health & hygiene

Drinking water

Education for poor

Village roads

Lighting


45

Chapter – 10 : BASELINE DATA COLLECTION

9.1 BASELINE DATA COLLECTION

Baseline data collection for EIA study has been collected from 1st March 2018 to 31st May

2018. Neares IMD station is Gorakhpur. Wind Rose diagram as per the nearest IMD are shown

in subsequent slide.

Predominant wind direction is flowing from West to East.

Ambient Air Quality Monitoring Stations

S.No. STATION DIRECTION DISTANCE (in Kms.)

CRITERIA FOR SELECTION

1. Project site -- -- Represents Project site

2. Sahjanwa E 0.4 Represents Downwind direction & nearest habitation

3. Jamuad E 5.0 Represents Downwind direction

4. Jurian SE 3.0 Represents Crosswind direction & Industrial area

5. Jogia Kol SW 5.0 Represents Sensitive receptor (near School area)

6. Maghar W 7.2 Represents upwind direction & Densely populated area

7. Minwan N 3.5 Represents Crosswind direction & Residential area

8. Ghasand NE 2.5 Represents proximity to river.


46


47

PRE-FEASIBILITY REPORTenvironmentclearance.nic.in/writereaddata/Online/TOR/02...PRE-FEASIBILITY...

Documents

Transcript of PRE-FEASIBILITY REPORTenvironmentclearance.nic.in/writereaddata/Online/TOR/02...PRE-FEASIBILITY...