PRE-FEASIBILITY REPORT

MAHALAKSHMI PROFILES PRIVATE LIMITED [PROPOSED EXPANSION STEEL PLANT]

SY.NOS. 287, 288 & 289

OF

KALLAKAL VILLAGE, MANOHARABAD MANDAL,

MEDAK DISTRICT, TELANGANA.

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INDEX

S.NO ITEM PAGE NO

1. Executive Summary 3

2. Introduction of The Project / Background Information 5

3. Project Description 9

4. Site Analysis 25

5. Planning Brief 26

6. Proposed Infrastructure 27

7. Rehabilitation and Resettlement (R & R) Plan 29

8. Project Cost 29

9. Analysis of Proposals (Final Recommendations) 29

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1.0 EXECUTIVE SUMMARY

PREAMBLE: Steel being a basic commodity for all industrial activities, quantum of its consumption is

considered an index of industrial prosperity. Since independence, there has been a substantial

growth in the steel sector in India from 1.5 Million Tons in 1950-51 to about 40 Million Tons at

present. Additional steelmaking capacity of about 30 Million Tons /year exists in the secondary

steel sector. Despite the above growth in the steel sector, the per capita steel consumption

continues to remain at a level of about 27 kg only, compared to about 350 to 450 kg in the

developed countries and 40 to 100 kg in some of the developing countries. Further, with nearly

20% of the world population, India’s contribution is only of the order of 4% of world steel

production. Hence, short-term and long-term strategies are necessary in planning the

development of the steel industry in the country to improve the level of per capita steel

consumption. It is expected that with the measures taken by Govt. of India for promotion

consumption of iron and steel and expected growth of Indian economy the requirement of steel

will significantly increase and accordingly the domestic manufacturing capacity needs to be

increase. Considering the potential steel in India, Mahalakshmi Profiles Pvt. Ltd. decide to

expand the existing plant in Survey No. 287, 288 & 289 of Kallakal Village, Manoharabad Mandal,

Medak District. The following is the technological process route selected by MPPL:

We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos.

287, 288 & 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing

plant is having valid Consent For Operation from TS Pollution control Board. Now the company

have proposed to expand the existing plant. The following are the details of production capacities

of existing and proposed expansion project:

S. No. Product Capacity

Existing Expansion After Expansion

1. MS Billets though Induction Furnace 90 TPD 621 TPD 711TPD

2. MS Skelp through Strip mill 165 TPD 534 TPD 699 TPD

3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4. Scaffolding -- 50 TPD 50 TPD

5. Galvanized Strips/Coils -- 300 TPD 300 TPD

6. Hot Dip Galvanizing of MS ERW Tubes -- 300 TPD 300 TPD

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PROJECT DESCRIPTION:

SITE DESCRIPTION:

Mahalakshmi Profiles Pvt. Ltd. decide to expand the existing plant in Kallakal Village,

Manoharabad Mandal, Medak District. The existing plant is having land of in 8.30 acres. Now an

additional 10 Acres 27 Guntas of land is acquired for the proposed expansion which is adjoining

the existing plant. Total after expansion is about 19 Acres 17 Guntas. The present use of the

land is industrial.

CHOICE OF FUEL:

Furnace oil or Producer gas will be the fuels proposed to be used in re-heating for manufacturing

strips. High grade industrial coal through

COMMON FACILITIES:

The common facilities such as Administrative Building, Fire Water Reservoir and Fire Water Pump

house, Workshop Building, Water Storage Reservoir, Raw Water Pump House will be provided at

the site.

SOURCE & AVAILABILITY OF WATER:

The water requirement for the proposed expansion project will be met from ground water

sources. Permission from ground water department will be obtained.

POLLUTION CONTROL MEASURES:

The Fugitive emissions from the Induction furnaces will be sucked through suction hoods and will

pass through Bag filters and then discharged through stack. The dust will be pneumatically

carried to covered bins. The outlet dust emission will be less than 50 mg/Nm3. The flue gases

from the Strip Mill will be discharged into the atmosphere through a stack for effective

dispersion of emissions into the atmosphere.

Closed circuit cooling system will be adopted in SMS & Strip. Hence there will not be any waste

water generation from process and cooling. Sanitary waste water will be treated in septic tank

followed by soak pit.

Solid waste will be disposed as per norms.

PROJECT ECONOMICS:

The expansion Project Cost has been estimated at Rs. 150 Crores. The Project would be funded in

a Debt: Equity ratio of 65:35. The entire debt is assumed to be funded through Rupee Term

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Loans. However, funding from the appropriate export credit agencies would be explored upon

finalization of the EPC Contract and the benefits would be passed through in the tariff.

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

2.1. IDENTIFICATION OF PROJECT AND PROJECT PROPONENT:

Mahalakshmi Profiles Pvt. Ltd., proposes to expand the existing plant by installing 2 X 20 MT

Induction Furnaces along with CCM for making 621 TPD (2,04,930 TPA) of MS Billets and New

roughing stand/Modernization activities for making 534 TPD (1,76,220 TPA) of MS Skelp and

installation of 3 new ERW Tube mills for production of 835 TPD (2,75,550 TPA) of MS Pipes and

installation of scaffolding workshop for production of 50 TPD (16,500 TPA) of Scaffolding.

Installation of Continuous Coil Galvanizing unit for manufacturing of 300 TPD (99,000 TPA) of

Galvanized Strips/Coils and installation of Hot Dip Galvanizing unit for manufacturing of 300 TPD

(99000 TPA) of Hot Dip Galvanizing of MS ERW Tubes. This feasibility report covers the techno

economic aspects of the complete proposed plant.

THE PROMOTERS:

Mahalakshmi Profiles (P) Ltd.:

The Company has its registered office at 1-9-8, I.D.A, Azamabad, Hyderabad, Telangana. The

Company is engaged in Manufacturing of Hot Rolled Strip, MS ERW Pipes & Tubes. MPL stands on

a foundation of skill and enterprise with experience of over five decades. The founder Late Shri

Mohanlal Agarwal is the first promoter of the steel industry in Andhra Pradesh. Over the last fifty

years we have combined technology with expertise to manufacture a wide range of steel

products geared to serve a variety of needs. In fact one of our group concerns, Mahavir steel

rolling mills, was the first to set up a re-rolling mill in the state of Andhra Pradesh. With a modest

turnover of Rs. 13.97 Crores for the year ended March 2002, the Company has registered a

turnover of around Rs. 269.85 Crores and net profit of 5.02 Crores for the year ended March

2018, and has targeted a turnover of Rs. 500 Crores for the year 2020. The company has

manufacturing at Kallakal village, Manoharabad Mandal, Medak Dist, Telangana. The company

now proposes expand the existing plant by modernization of Strip mill and Induction Furnace in

existing plant premises, setting up of new tube mill division along with strip galvanizing and hot

dip galvanizing facilities.

Promoters:

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The company is promoted by:

1. Mr. Ramniranjan Agarwal

2. Mr. Vinod Kumar Agarwal

All the Promoters have a very strong background in steel industry. Each one of them has vast

experience in steel industry. The promoters have other manufacturing units which are all profit

making and have good market reputation. Here is brief profile of other companies of the

promoters:

Sri Shiv Shakti Alloys & Metals

The company is having 100 x 2, Sponge iron kilns in Veerlapalli Village, Shadnagar Mandal,

Mahbubnagar Dist. The unit is one of the biggest producers of Sponge iron in Andhra Pradesh,

For the year ended March 2008 the company had a turnover of 19cr with net profit of 4.0cr.

Mahalakshmi Alloys & Metal (P) Ltd.

Mahalakshmi Alloys & Metals Pvt. Ltd. Having registered office at H.No. 7-1-71/M/1, 3rd floor,

Guru Balaji Nivas, D.K.Road, Ameerpet, Hyd-16. The company is engaged in Mgf. of C.I.Castings.

The company was incorporated in 2004 and it started setting up of casting unit at Survey No. 825,

Chegur village, Kothur Mandal, Mahabub Nagar Dist. A.P in the year 2005. It commenced

production in Aug.2005 and achieved break even in 1st full year of operation. For financial year

ended March 2008.The Company has achieved turnover of 27cr and net profit of 0.60 cr. The

company is one of the leading manufacturers of Good Quality Ingot moulds in South India and

has a good market standing.

The company has diversified into trading of iron ore and is supplying iron ore to Maa Mahamaya

Industries, Vishakhapatnam, Concast Ferro Inc., Sirkakulum

MPL Cement & Sponge Pvt. Ltd.

MPL Cements & Sponge Pvt. Ltd. was taken over as a sick-unit and reinstated into operating

condition by the group. The company has a 30TPD Sponge Iron facility with pre-heater

technology. Recently, the cement grinding unit within the same facility has been commissioned.

The company is selling OPC and PPC cement under the brand name of MPL®.

Conclusion:

The promoters of the company are having presence in every field of Iron & Steel Industries. They

have foundry, re-rolling mills, Sponge Iron Plant, Induction Furnace, tube mills etc. They are

actively involved in trading of Iron Ore, Sponge iron, Pig Iron, Billets And other steel Products.

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With their vast experience the promoters will have no difficulty in procuring raw material and in

day to day operation of the plant. The promoters have excellent financial standing and are rated

very highly by the banks.

2.2 BRIEF DESCRIPTION OF NATURE OF PRODUCT

The expansion proposal involves:

Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces

Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp by through Strip mill.

Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.

Manufacturing of 50 TPD (16,500 TPA) of scaffolding.

Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / coils.

Manufacturing of 300 TPD (99000 TPA) of Hot Dip galvanizing of MS ERW Tubes.

2.3 NEED FOR THE PROJECT AND IMPORTANCE TO THE REGION:

India is the world’s third-largest producer of crude steel (up from eighth in 2003) and is expected

to become the second-largest producer by 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 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 modernization and up-gradation of older plants and higher energy efficiency levels.

India’s crude steel capacity reached 109.85 Million Tonnes (MT) in 2014-15, a growth of 7.4 per

cent. Production of crude steel grew by 8.9 per cent to 88. 98 MT. Total finished steel production

for sale increased by 5.1 per cent to 92.16 MT. Consumption of total finished steel increased 3.9

per cent to 76.99 MT.

India produced 7.34 MT of steel in the month of September 2015, which was nearly equal to the

country's steel production in September 2014.

The steel sector in India contributes nearly two per cent of the country’s gross domestic product

(GDP) and employs over 600,000 people. The per capita consumption of total finished steel in the

country has risen from 51 Kg in 2009-10 to about 59 Kg in 2014-15. India's steel consumption for

FY 2015-16 is estimated to increase by 7 per cent, higher than 2 per cent growth last year, due to

improving economic activity, as per E&Y's 'Global Steel 2015-16 report.

The Government of India is aiming to scale up steel production in the country to 300 MT by 2025

from 81 MT in 2013-14.

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The Ministry of Steel has announced to invest in modernization and expansion of steel plants of

Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) in various states

to enhance the crude steel production capacity in the current phase from 12.8 MTPA to 21.4

MTPA and from 3.0 MTPA to 6.3 MTPA respectively.

The Minister of Steel & Mines, Chaudhary Birender Singh , has reiterated commitment

of Central Government to support the steel industry to reach a production target of 300 Million

Tonne Per Annum (MTPA) in 2025.

The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology

Mission of India (SRTMI) in association with the public and private sector steel companies to

spearhead research and development activities in the iron and steel industry at an initial corpus

of Rs 200 Crores (US$ 31.67 million).

India is expected to become the world's second largest producer of crude steel in the next 10

years, moving up from the third position, as its capacity is projected to increase to about 300 MT

by 2025. Huge scope for growth is offered by India’s comparatively low per capita steel

consumption and the expected rise in consumption due to increased infrastructure construction

and the thriving automobile and railways sectors.

Chhattisgarh, Karnataka and Andhra Pradesh are rich in respect of minerals which is evident from

Iron Ore Mines existing these states. Hence, the Iron products like Iron Ore, Pig Iron, Billets,

Ingots, Blooms are available at lower transportation cost in Hyderabad. There are many mini

steel plant and Rolling Mills in this area consuming these items as raw material for producing

steels.

After formation of “Telangana State” in year 2014 and with increasing as Capital a huge demand

for steel and cement has created and recently, the overall development of infrastructure will be

there. This demand will further increase the gap between demand and supply of steel.

2.4 DEMAND – SUPPLY GAP

The product pipe will be used Oil gas exploration hence a lot of demand in various region in

south India.

2.5 IMPORTS V/S INDIGENOUS GENERATION

The product will be utilized in domestic purpose and some part will be exported.

2.6 EMPLOYMENT GENERATION (DIRECT & INDIRECT)

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The proposed expansion project creates employment to 500 people during construction and 500

people during operation project.

3.0 PROJECT DESCRIPTION

3.1 TYPE OF THE PROJECT:

The expansion proposal involves:

Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces

Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp through Rolling mill.

Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.

Manufacturing of 50 TPD (16,500 TPA) of Scaffolding.

Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / Coils.

Manufacturing of 300 TPD (99,000 TPA) of Hot Dip Galvanizing of MS ERW Tubes.

3.2 LOCATION:

The proposed expansion project will establish in the existing plant premises and adjacent land of

Kallakal Village, Manoharabad Mandal, Medak District. The following are coordinates of the plant

site.

COORDINATES OF PLANT SITE

S. NO. LATITUDE LONGITUDE

1. 17°42'3.22"N 78°29'1.19"E

2. 17°41'57.66"N 78°29'0.91"E

3. 17°41'57.60"N 78°28'55.80"E

4. 17°41'52.50"N 78°28'55.60"E

5. 17°41'52.50"N 78°28'55.40"E

6. 17°41'54.20"N 78°28'50.00"E

7. 17°41'54.20"N 78°28'49.60"E

8. 17°41'54.10"N 78°28'49.10"E

9. 17°41'55.30"N 78°28'48.80"E

10. 17°41'55.40"N 78°28'49.40"E

11. 17°41'56.60"N 78°28'49.40"E

12. 17°41'56.70"N 78°28'49.60"E

13. 17°41'56.90"N 78°28'49.70"E

14. 17°41'56.60"N 78°28'47.00"E

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15. 17°41'56.50"N 78°28'47.00"E

16. 17°41'55.90"N 78°28'42.00"E

17. 17°41'56.20"N 78°28'41.90"E

18. 17°41'56.80"N 78°28'46.70"E

19. 17°41'57.60"N 78°28'46.70"E

20. 17°41'57.50"N 78°28'48.20"

21. 17°42'0.80"N 78°28'48.50"E

22. 17°42'0.70"N 78°28'50.60"E

23. 17°42'2.00"N 78°28'50.90"E

24. 17°42'2.30"N 78°28'56.20"E

25. 17°42'2.20"N 78°28'56.20"E

26. 17°42'2.79"N 78°29'0.25"E

The topographical map of the plant site and surrounding 10 Km radius and Google map showing

plant are shown below.

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GOOGLE MAP SHOWIN THE PLANT SITE

Plant site

3.3 SIZE OR MAGNITUDE OF OPERATION:

We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos. 287, 288

& 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing plant is having

valid Consent For Operation from TS Pollution control Board. Now the company have proposed to expand

the existing plant . Unit 2 The following are the details of production capacities of existing and proposed

expansion project:

S. No. Product Capacity

Existing Expansion After Expansion

1. MS Billets though

Induction Furnace 90 TPD 621 TPD 711TPD

2. MS Skelp through

Strip mill 165 TPD 534 TPD 699 TPD

3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4. Scaffolding -- 50 TPD 50 TPD

5. Galvanized Strips/Coils -- 300 TPD 300 TPD

6. Hot Dip Galvanizing of

MS ERW Tubes -- 300 TPD 300 TPD

3.4. PROCESS DETAILS:

A) INDUCTION FURANCE [STEEL MELTING SHOP]

In Steel Melt Shop (SMS) Sponge Iron will be melted along with melting scrap and fluxes to make

pure liquid steel and than to mould it in required size billets. The shop consists of following

equipment and subassemblies:

Induction Furnaces: Induction Furnace is a device to melt the charge material using electrical

power. It consists of Crucible lined with water cooled induction coils, Electrical system to give

controlled power to induction coil, Hydraulic tilting system, Heat exchanger to cool the

circulating water, water softener for generating soft water, furnace transformer, Power Factor

improvement system and surge suppressor.

Ladles: Ladles are pots with refractory lining inside to withstand 1600 deg C temperature. It has

side arms so that it can be lifted with the help of crane. Ladles are used to stores the liquid steel

from Induction Furnace and take it for further processing. Ladles are with bottom nozzle and

pneumatically operated gate for discharge of liquid.

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Cranes: Electric Over-head (EOT) cranes of various capacities are used to carry the

ladles/materials at different places. Cranes are used in Melting hall to charge melting scrap,

remove the ladles to the LRF, further to place it over the Tundish of the Continuous Caster, to

remove billets from the cooling bed and store at designated places, and also for other petty use.

Accordingly the sizes, capacity and number of cranes are decided.

Continuous Casting Machine (CCM): CCM is used to continuously cast the liquid steel in required

cross section and in length. It consists of Tundish, Mould, Bow with Withdrawal mechanism,

straightening mechanism and cooling bed, hydraulic system for withdrawal mechanism, water

sumps and cooling towers for water spray on the withdrawn section as well as on the cooling

bed. Dummy bar is provided to start the casting. Tundish is a rectangular vessel, lined with

refractory and having discharge nozzle with pneumatically operated gate. A stand is erected over

it where the ladle is stationed for discharging the liquid in it. Mould is of copper with water

cooled jacked. Its cross-section in the bottom is of the size of which billet is to be drawn. Initially

the dummy for of the same size is kept inserted. When the liquid steel is poured in the mould the

dummy bar is drawn slowly, so that the liquid steel in partially frozen state comes out of the

mould. Water spray nozzles are installed to spray water over the just drawn billet to cool it

further and to harden the skin of the drawn billet.

B) STRIP MILL

The primary function of the Hot Strip Mill is to reheat semi-finished steel slabs of steel nearly to

their melting point, then roll them thinner and longer through 8 successive rolling mill stands

driven by motors totalling 10,000 HP and finally coiling up the lengthened steel strip for transport

to the next process. The Hot Mill rolls billet pieces weighing up to 600kg between 100*100 and

160*160mm. Steel billet of up to 160mm thickness is rolled into strip as thin as 1.2mm up to 400

feet in length.

Raw Material Handling:

The raw material for making strip is MS square billets/MS Slabs. The billets are then cut using

liquid oxygen and LPG into smaller lengths as per the desired dimension of strip to be produced.

The cut-to-length billets are placed on a charging grate. With the help of a hydraulic arrangement

the billets are fed onto the conveyor and in turn conveyed to the pusher top.

Reheating Furnace:

Critical to the Hot Strip Mill is its pusher-type reheat furnace nominally rated to produce 30 tons-

per-hour. Heating this much steel from room temperature to 1150-1200°C consumes around 32

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MT of coal each day. The cut length billets are placed on a roll line. When space is available in the

furnace, large hydraulic ‘pusher arms’ are engaged to move the billets into the furnace. Much of

the preheating of the steel is achieved by the hot exhaust gases rushing past the billets on the

way to the ‘recuperators’ above the charge door. Whatever heat is left in the exhaust gases

preheats the incoming combustion air to over 450°C in these massive heat-exchangers.

Conversely, in the heating zone the steel is primarily heated by the glowing-hot furnace walls. In

the soak zone, numerous smaller burners seek to maintain a uniform temperature within the

zones to equilibrate any cold spots in the billets. Refractory dividers help to physically distinguish

the zones, and thermocouple temperature sensors throughout the furnace. When the billet

reaches the ‘discharge door’ at the exit end of the furnace, the billet has been sufficiently heated,

the door opens and the ejector billet pushes the hot piece out of the furnace. The intensely hot

billet is placed on a roller table which carries it into the roughing mill.

Direct feeding of HOT Billets /slabs from CCM

Descaling:

After exiting the reheat furnace, the Billets/slabs passes through a descaling unit, an enclosure

employing two pairs of spray headers that blast the intensely hot billet with pressurized water to

remove the scale of oxidized iron that forms at the surface of the slab in the oxygen-rich

atmosphere of the reheat furnace. Shortly after descaling, a (relatively) small 2-hi rolling mill

called a scale breaker breaks up any scale that remains.

Roughing:

The roughing mill is made up of 5 rolling mill stands, two of which incorporate small vertical

rolling mills called edgers. Billets are heated in the furnace until they glow bright orange-yellow

are rolled through one stand at a time to produce so-called transfer bars suitable for finish

rolling. High-pressure water-jet nozzles clean the oxidized iron, or scale, from the surface along

the way. The two vertical stands, each incorporate edgers for width control and roll the bar from

five to six inches thick incrementally down to around an inch and a quarter, depending on the

customer’s ordered width, gauge, and steel grade.

Edging:

At the very high temperatures at which the steel is rolled in the roughing mill, it is very plastic

and ‘flows’ easily like cookie dough beneath a rolling pin. Consequently, as the Billets/slab is

reduced from five to six inches thick to the final bar thickness of few millimetres; bars tend to

spread width-wise by a few inches at their extremities, and by as much as an inch through the

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body. The edgers serve to hold a uniform width through the bar’s length, and are powerful

enough to squeeze the bar as much as an inch narrower than the slab’s original dimension.

Finishing:

The Hot Strip Mill includes three finishing stands, which reduce the thickness of the transfer bar

down to the gauge required by the customer or the next process. The rolling speed is set to

allow the last stand to perform the final reduction at the finishing temperature, between 850° to

1000°C, specified to reach certain mechanical properties. By now, the steel has been rolled into a

flat strip as long as 200 feet. In contrast to the roughing mills, the finishing mills roll the transfer

bar in tandem, meaning each bar will be rolled through all three stands at once. The hot steel is

quite fragile as it is rolled and tension between the finishing mill stands must be closely

controlled at very low levels in order to avoid stretching or tearing the strip.

Coiling

The strip is passed through a pinch roll and the head end is mounted on a horizontal coiler. The

coil build up takes place until the desired weight of the coil is achieved. The coil is conveyed on

conveyors to the point of storage or use for the next process.

C) TUBE MILL

The coil as per desired width and thickness is received from the stock yard and loaded onto

decoiler. The end of the strips are sheared and butt-welded and fed into a storage cage. The strip

is passed through the forming section of the pipe mill and then into the Fin-pass section. In this

process, it gradually takes the shape of a round tube. Using the process of High Frequency

Induction Welding, the edges of the strip are heated and welded. The extra metal on the weld

seam is removed using a scarfing tool. The tube which becomes hot in the process is cooled in

the cooling chamber. The sizing section adjusts any deviation in the shape and size of the tube as

per desired levels. The tube is then cut to suitable lengths using a circular flying saw driven by

rack & pinion system. The cut-length tubes are then conveyed to a rack where they are bundled

and stored in the stock yard for dispatch.

D) CONTINOUS COIL GALVANIZING

Coils to be processed on either galvanizing line are charged, or loaded, onto one of two Pay-Off

Reels. The head of the coil being charged is welded to the tail of the coil being processed by a lap

seam welder. Between 1/32” and 1/4” of the two coils are over-lapped onto one another, and a

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pair of high-voltage copper wheels, one above and one below, roll from one edge to the other,

melting the laps and pressing them into one another. The resulting weld is nearly flattened to the

gauge of each coil, but with a slight bulge in the center of the seam. The voltage applied between

the two dies and the speed at which they roll across the width of the strip are pre-programmed

in a computer as various recipes that are called up according to the gauges and grades being

processed.

After welding, the strip travels into the ‘Entry Loop Car’, or accumulator section, where enough

material is stored to allow the entry section to shut down for at least a minute and a half while

another coil is charged without slowing the process (annealing and zinc pot) section. The Loop

Cars for the #1 CGL travel horizontally, while the newer line employs multi-strand, vertical

accumulators.

Cleaning & Preheating

Before heat treating, the strip is cleaned of rolling oils and iron fines with rotating brushes and

diluted sodium hydroxide (caustic soap). The steel is preheated in the process section to a

relatively low temperature to further clean the strip surface and minimize the time needed for

the reducing zones to bring the steel up to its annealing temperature.

Burners in the Preheat section combust natural gas in open air to maintain zone temperatures as

high as 2250° Fahrenheit. Under normal operating conditions, the steel is in this section for only a

few seconds and never actually reaches this furnace temperature.

Producing ‘full hard’ galvanized steel requires striking a delicate balance between cleaning the

surface adequately for good zinc adherence and not sacrificing the strength desired by the

customer by allowing the steel grains to recrystallize. Costly low-carbon steel grades with small

additions of titanium are sometimes used because they anneal at relatively high temperatures

and can be thoroughly cleaned prior to coating.

Heat Treatment

Because most of feed-stock for the galvanizing lines is Full Hard from the 5-Stand, both units

incorporate processing steps to remove rolling oils, iron fines and surface oxides from the strip to

ensure good zinc adherence, and to anneal the material to achieve the combination of

formability and strength sought by the customer.

Immediately after the preheat section, the strip enters the ‘reducing zone’ where it is annealed

to achieve the customer’s physical requirements for formability in a heated atmosphere of 1 part

hydrogen, 3 parts nitrogen. The atmosphere prevents the growth of scale during heat-treatment,

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actually ‘reducing’ light surface oxide back to iron. Heat is supplied by burning natural gas inside

sealed tubes above and below the strip, with the heat produced radiating from the walls of the

tubes out into the reducing zones. These zones are held at temperatures up to 1650° Fahrenheit,

and, under normal operating conditions, the product is annealed for less than a minute. Thin

strip at the #2 CGL may spend only 10 seconds in the reducing zones, while heavier gauges at the

#1 CGL may take a couple of minutes to reach the necessary temperature. The steel is heated to

temperatures typically in the range of 1300° to 1500° Fahrenheit.

Because the furnace is cannot achieve abrupt changes in temperature, specific limits are placed

on the scheduling of coils to ensure smooth transitions between products with different

annealing requirements. Since the annealing process depends on both time and temperature,

operators can ease the transitions by adjusting the speed of the line.

Immediately after annealing, the strip travels through cooling zones incorporating air jets and

recirculating fans before being directed down the ‘snout’ to the zinc pot. The objective is to cool

the steel to a temperature that roughly matches that of the molten zinc; too warm and the

coating’s adherence will be compromised by an overly thick zinc-iron transition layer; too cool

and the aluminum can begin to precipitate (freeze) out of the molten zinc and get picked up by

the pot roll, marking the steel.

Galvanizing

The facilities for coating steel are of the ‘hot-dip’ type, as opposed to electro-galvanizing, which is

a plating process comparable to chroming. After the steel has been thoroughly cleaned,

annealed, and cooled to a temperature that roughly matches that of the molten zinc bath, the

strip enters the zinc pot and travels around a ‘pot roll’ which redirects it up through an ‘air knife’

system. Coating thickness is controlled by blowing off excess molten zinc; the air pressure applied

to a tapered gap in the knife lips, as well as the distance between the knives and the strip,

regulate how much zinc is carried out of the pot on the steel’s surface. The height of the air

knives above the zinc pot is adjusted according to strip speed. Additional blow-offs called edge

baffles serve to prevent the excess zinc coating inherent to the edges from resulting in a

condition called ‘edge build-up’ that causes the coil to flare up at the sides, stretching the

material to the point that it will not lay flat during further processing.

The thickness of the zinc applied to the steel is specified by CSI’s customers as a coating weight,

in the unit of hundredths of ounces per square foot. An order for ‘G-60’ seeks 0.60 ounces of zinc

on every square foot of steel, which, when evenly distributed, equates to a coating thickness of

about one-half of one thousandth of an inch (0.0005”) per surface. Since the heavier coating

19

weights add as much as 0.004” (for G-235) to the overall thickness of the coated steel, aim

gauges at the rolling mills provide for this so the finished product will meet the customer’s gauge

requirements. The thickness of the zinc coating is measured with a Gamma-ray and fed back into

the computer which in turn adjusts the air knives to optimize the coating weight. Changes in

required coating weight, steel thickness, and even line speed are rapidly compensated for

automatically.

The ‘pot’ is replenished periodically with 1-ton ingots of 99.9% pure zinc. Massive induction

heaters in the basement maintain the pot at temperatures about 50 above the 800-degree

Fahrenheit melt point of the zinc. Small additions of aluminium improve the adherence of the

zinc to the base metal by inhibiting the growth of the brittle zinc-iron transition layer.

The strip travels more than ten stories straight up into the air out of the pot to allow time for the

zinc to solidify against the steel. Large fans in the cooling tower air-cool the freshly coated steel

before it is sent through a water-quench ‘shock roll’ tank.

Galvannealing

Products designated by an ‘A’ in their coating weight (for instance A-40) are ‘Galvannealed’, a

process wherein the just-coated steel’s surfaces are immediately reheated by open-air burners.

The zinc is baked into the steel until the two are alloyed, or metallurgically blended, with one

another at the surfaces of the strip. The finished product has a dull gray appearance due to the

large proportion of iron that has diffused to the surface.

Galvannealed product corrodes more readily than galvanized steel and is intended for end-uses

that will be painted, such as computer brackets and appliance panels. While hot-dip galvanize

must be chemically treated before painting, galvanneal does not. The alloyed layer is relatively

brittle and will tend to fracture and flake off (‘powdering’) if flexed significantly by a paint line or

roll-former.

Reheating is accomplished for this operation with a short, vertical, natural-gas furnace that is

positioned above each line’s zinc pot. Because of the limitations of these furnaces, line speeds

are slowed considerably when producing galvannealed steel and available coating weights are

normally limited to A-60 or lighter to ensure that ‘free zinc’ does not remain at the steel’s

surface.

Flatness Correction

Situated after each pay-off reel is a small uncoilerLeveler that flattens the head-end of the steel

by removing its coil-set, or memory of having been coiled up.

20

After the steel has been through the cooling tower and is roughly room temperature again, it

passes through a Tension Leveler much like that at the Pickle Line where the strip is tightly

worked up and down by a series of roll cassettes. Shape defects are removed from the strip as its

thickness is reduced by around one-half of one percent.

The #2 Galvanizing line includes a 4-hi skin-pass mill stand situated just in front of the tension

leveler to reduce strain marks and impart a uniform surface texture on the coated product,

subject to the customer’s specifications.

Final Processing

When required by the customer, a thin coat of rust inhibitor is applied to the strip as it travels

through the chem treat section after the tension leveller. A solution is squeegeed onto both

surfaces and then air-dried, inhibiting the formation of ‘white rust’ (water-stained zinc) for six

months or longer.

Just before final inspection, the product passes into the stamping area where, when indicated on

the schedule, the strip is printed periodically with the product’s specifications. The older line uses

four 16” diameter ink drums, while the #2 CGL incorporates an ink-jet printer for improved print

quality and greater flexibility.

When indicated by the customer, the strip is oiled after inspection. A spreader roll at the #1 CGL

squeegees oil evenly across the top surface of the steel shortly before it is recoiled, while the

newer line uses an electrostatic oiler. Oil is less expensive than Chem Treat, but it is not as

durable and is more difficult for the customer to clean from the strip. Typically, galvanize

products that will be painted are oiled, while end-uses calling for exposed zinc receive Chem

Treat.

Inspection

Before recoiling, the strip is inspected to ensure it is dimensionally sound, and that any surface or

shape defects are acceptable, based on customer- and end-use-specific criteria. Each line has a

small laboratory used to monitor the process on an ongoing basis. Rockwell Hardness tests are

performed on each parent coil to evaluate the annealing heat treatment and feedback is

normally given to the operator in time to adjust for the next coil. Additional tests are performed

to evaluate the coating quality; weighing a sample, chemically removing the zinc, then

reweighing the coupon confirms the coating weight; creasing a sample with a tight bend tests the

adherence of the zinc to the base metal. Periodic checks are performed to monitor the cleaner’s

21

detergent levels, the molten zinc bath’s aluminium and lead content, and the chem treat

solution’s make-up. Tensile test coupons to qualify Physical Quality steel are sent to the main lab

for evaluation.

The finished strip is recoiled and cut to the weight required by the customer.

E) HOT DIP GALVANIZING

Hot dip galvanizing is the process of coating pipe and fitting with a layer of zinc alloy in a bath of

molten zinc at temperature around 450 °C.

As ISO 1461, ASTM A123, and EN10240, the galvanizing process has its own built-in means of

quality control because zinc does not react with an unclean steel surface. So Surface Preparation

is a critical step.

Degreasing

A hot alkali solution, mild acidic bath removes organic contaminants such as dirt, paint markings,

grease, and oil from the metal surface.

Pickling

A dilute solution by heated sulfuric acid or ambient hydrochloric acid, removes mill scale and iron

oxides (rust) from the steel surface.

Fluxing

A zinc ammonium chloride solution, removes any remaining oxides and deposits a protective

layer prior to dip steel in bath.

According to ISO 1461, zinc coating thickness follows below form:

Steel thickness

mm

Local coating thickness

(minimum)

μm

Average coating thickness

(minimum)

μm

Average coating mass

(minimum)

g/m²

steel ＞6 70 85 610

22

3＜ steel ≤6 55 70 505

1.5≤ steel ≤3 45 55 395

steel ＜1.5 35 45 325

Galvanizing

ERW Pipe are completely immersed in a bath of molten zinc. The bath chemistry is specified by

ASTM B6, and requires at least 98% pure zinc, to form series of bonded zinc-iron alloy layers.

3.5. RAW MATERIAL REQUIRED:

The following will be the raw material requirement for the proposed expansion project.

S.No. Raw Material Consumption Source of Raw

Materials

Method of Transport

Induction Furnaces with concast

1 Sponge Iron 551 TPD From Sponge iron

plants

By Road (covered trucks)

2 Scrap 164 TPD Local By Road (covered trucks)

3 Ferro Alloys 6 TPD Local By Road (covered trucks)

Strip mill

1 Billets 587 TPD In plant generation Conveyors

2 High grade coal

thermal 32 TPD

Imported/Purchased

from Traders By Road (Covered trucks)

Tube Mill

1 MS Skelp 699 TPD In plant generation By Road (Covered trucks)

2 HR Coil 354 TPD

Purchased from

SAIL/TATA/JSW/

Other Manufacturers

By Road (Covered trucks)

Scaffolding

1 MS Tubes 47 TPD In plant generation By Road (Covered trucks)

23

2 Accessories/

Components 3 TPD

Purchased from local

Manufacturers By Road (Covered trucks)

Continuous Coil Galvanizing

1 MS Skelp 150 TPD In plant generation By Road (Covered trucks)

2 HR Coils 150 TPD Purchased from

SAIL/TATA/JSW By Road (Covered trucks)

3 Zinc

Hindustan Zinc/

Other reputed

Manufacturers

By Road (Covered trucks)

Hot Dip Galvanizing

1 MS ERW Tubes 300 TPD In plant generation By Road (Covered trucks)

2 Zinc

Hindustan Zinc/

Other reputed

Manufacturers

By Road (Covered trucks)

3.6. WATER REQUIREMENT AND ITS SOURCE:

The existing plant water requirement is 14.6 KLD and is sourcing from ground water. The

proposed expansion project water requirement will be 59.5 KLD. This includes Make-up water for

Induction Furnaces, Strip Mill, Tube mill and Domestic water. The water requirement for the

proposed expansion project will be sourced from ground water. After obtaining the approval

from the Ground water department only, water will be utilized. The details of total water

consumption, it's breakup is shown in Table below.

WATER REQUIREMENT

SOURCE Existing

in KLD

Expansion

in KLD

After expansion

in KLD

Cooling water make up for SMS 3 20 23

Cooling water make up for Strip mill 4 13 17

Cooling water make up for Pipe mill 4 13 17

Continuous Coil Galvanizing

Hot Dip Galvanizing

24

Domestic consumption 3.6 12.5 16.1

Total 14.6 59.5 74.1

3.7. QUANTITY OF WASTE GENERATED:

3.7.1 WASTE WATER GENERATION:

Closed circuit cooling system will be adopted in SMS, Strip mill & Tube mill. Hence there will not

be any waste water generation from process and cooling in the steel plant. Only waste water

generation will be sanitary waste water. Which will be treated in septic tank followed by soak pit.

3.7.2 SOLID WASTE GENERATION:

The solid waste generation and disposal method from the proposed expansion project will be as

following.

S. NO TYPE OF SOLID

WASTE

EXISTING

QTY.

(IN TPD)

EXPANSION

QTY.

(IN TPD)

AFTER

EXPANSION

QTY.

(IN TPD)

DISPOSAL PROPOSED

1 Slag

(from SMS)

9 62.1 71.1

Slag will be crushed and after

iron recovery the inert

material will be used in road

construction/given to brick

manufacturers

2 Mill scales

(from Strip

Mill)

8.2 26.7 34.9

Will be reused in SMS

3 Scrap from

pipe mill 8.2 41.8 50

Will be used in SMS

3.8 POWER REQUIREMENT

Power requirement for the existing plant is 7500 KVA being met from TSPDCL. Power required for

proposed expansion will be 15500 KVA and will be met from TSPDCL.

25

4.0 SITE ANALYSIS

4.1 CONNECTIVITY

Compo

nent

Description

Road The plant site approached by small road which connect NH-7 and Industry

Rail Dabilpur railway station is 2.8 Kms.

Air Nearest Airport located at Hyderabad which is about 70 km from the

proposed site. Sea

Port

The nearest sea port is Kakinada which is about 410 Km from the proposed

site.

4.2 LAND USE

The existing land is industrial land.

4.3 TOPOGRAPHY

The topography of the land is more or less flat without undulations.

4.4 EXISTING LAND USE PATTERN

The existing land is industrial land.

4.5 EXISTING INFRASTRUCTURE

All required infrastructure is prevailing in the site.

4.6 SOIL CLASSIFICATION

The soils of the district are mainly red earth comprising loamy soils, sandy loams and sandy clay

loams. Red laterite soils are present in Zaheerabad mandal. Black cotton soils comprising clay

loams, clay and silty clay are found around Gajwel, Sangareddy, Narayanakhed and Andole

mandals. The soils in undulated regions have patchy crop cultivation due to presence of rocks

and hills.

4.7 CLIMATIC DATA FROM SECONDARY SOURCES

The district experiences dry climate. The agricultural Year is divided into four seasons. March to

May constitutes summer season recording highest temperature; summer shower with hailstorm

is also received. The second period is South-West monsoon season (Khariff) from June to

September which decides the fate of Agriculturist and the maximum rainfall of the year is

received during this period and the wettest month is July. With summer showers received during

April-May months, the farmers start tilling the land and the sowing starts quite early by June.

The North-East monsoon (Rabi) is from October to the end of November. The post monsoon

season which coincides with winter will be from December to February.

26

5.0 PLANNING BRIEF

5.1 PLANNING CONCEPT

We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos.

287, 288 & 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing

plant is having valid Consent For Operation from TS Pollution control Board. Now the company

have proposed to expand the existing plant. The following are the details of production capacities

of existing and proposed expansion project:

S. No. Product Capacity

Existing Expansion After Expansion

1 MS Billets though

Induction Furnace 90 TPD 621 TPD 711TPD

2 MS Skelp through

Strip mill 165 TPD 534 TPD 699 TPD

3 Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4 Scaffolding -- 50 TPD 50 TPD

5 Galvanized Strips/Coils -- 300 TPD 300 TPD

6 Hot Dip galvanizing of

MS ERW Tubes -- 300 TPD 300 TPD

5.2 POPULATION PROJECTION

Kallakal is a large village located in Tupran Mandal of Medak district, Andhra Pradesh with total

1612 families residing. The Kallakal village has population of 6482 of which 3323 are males while

3159 are females as per Population Census 2011.

In Kallakal village population of children with age 0-6 is 851 which makes up 13.13 % of total

population of village. Average Sex Ratio of Kallakal village is 951 which is lower than Andhra

Pradesh state average of 993. Child Sex Ratio for the Kallakal as per census is 998, higher than

Andhra Pradesh average of 939.

Kallakal village has higher literacy rate compared to Andhra Pradesh. In 2011, literacy rate of

Kallakal village was 67.86 % compared to 67.02 % of Andhra Pradesh. In Kallakal Male literacy

stands at 76.87 % while female literacy rate was 58.30 %.

27

5.3 LAND USE PLANNING

Existing plant is located at Sy.Nos. 287, 288 & 289, Kallakal Village, Manoharabad

Mandal, Medak District.

Land available for existing plant is 8 Acre 30 Guntas.

Now additional 10 Acre 27 Guntas land has been acquired for the proposed expansion

project which is land adjacent to the existing plant.

Total land after proposed expansion will be 19 Acre 17 Guntas.

5.4 AMENITIES / FACILITIES

Facilities like canteen, rest rooms are available in the existing plant as basic facilities to workers.

And same will be improved further.

6.0 PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA

The main plant area comprises of Furnace sheds, Rolling mill area, Tube mill area, Scaffolding

work shop ,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

More than 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.

10 m wide greenbelt is being maintained all around the plant.

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.

28

6.4 SOCIAL INFRASTRUCTURE

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

6.5 CONNECTIVITY

Compo

nent

Description

Road The plant site approached by small road which connect NH-7 and Industry

Rail Dabilpur railway station is 2.8 Kms.

Air Nearest Airport located at Hyderabad which is about 70 km from the

proposed site. Sea

Port

The nearest sea port is Kakinada which is about 410 Km from the proposed

site.

6.6 DRINKING WATER MANAGEMENT

The workers at the plant during construction will be provided with water for their requirement

and for the construction activities. The construction labour will be provided with sufficient and

suitable toilet facilities to allow proper standards of hygiene. These facilities would preferably be

connected to a septic tank and shall be maintained properly to have least environmental impact.

Drinking water required for the workers will be met from ground water resources.

6.7 SEWERAGE SYSTEM

Domestic waste water generated will be treated in septic tank followed by soak pit.

6.8 INDUSTRIAL WASTE MANAGEMENT

No waste water will be generated from the process. Only waste water generated will be sanitary

waste water, which will be treated in septic tank followed by soak pit.

6.9 SOLID WASTE MANAGEMENT

The solid waste generation and disposal method from the proposed expansion project will be as

following.

S. NO TYPE OF SOLID

WASTE

EXISTING

QTY.

(IN TPD)

EXPANSION

QTY.

(IN TPD)

AFTER

EXPANSION

QTY.

(IN TPD)

DISPOSAL PROPOSED

1 Slag

(from SMS)

9 62.1 71.1

Slag will be crushed and after

iron recovery the inert

material will be used in road

construction/given to brick

manufacturers

2 Mill scales 8.2 26.7 34.9 Will be reused in SMS

29

(from Strip

Mill)

3 Scrap from

pipe mill 8.2 41.8 50

Will be used in SMS

6.10 POWER REQUIREMENT & SUPPLY / SOURCE

The power required for the proposed expansion will be taken from TSPDCL.

7.0 REHABILITATION AND RESETTLEMENT (R & R) PLAN

No rehabilitation or resettlement plan is proposed as there are no habitations in the proposed

expansion project site.

8.0 PROJECT SCHEDULE & COST ESTIMATES

The following is the breakup of the proposed expansion project cost.

Particulars Rs. in Crores

i. Induction Furnace with CCM 24.0

ii. Strip mill 14.0

iii. Pipe Mill 62.0

iv Scaffolding 5.0

v Continuous Coil Galvanizing 30.0

vi Hot Dip Galvanizing 15.0

Total Investment 150.0

Means of Finance Rs. in Crores

Particulars

i. Share Capital 49.5

ii. Term Loan 100.5

Total Investment 150.0

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

With the implementation of the proposed expansion 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 come-up and the medical

facilities will certainly improve due to the proposed project.

30

SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES

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

following activities / responsibilities.

Health & hygiene

Drinking water

Education for poor

Village roads

Lighting

HEALTH & HYGINE

1. Personal and domestic hygiene,

2. Maintaining clean neighborhood,

3. Weekly health camps offering free-check up & medicines

4. Ambulance services

5. Education & drug de-addiction, aids.

DRINKING WATER

Making drinking water available at centralized locations in the village,

SUPPORTING EDUCATION

1. Providing books to all poor children,

2. Conducting annual sports festival in the village schools,

3. Providing amenities like fans, lavatories,

4. Maintain play ground etc.