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Pre-Feasibility Report: M/s Rajuri Steel Pvt. Ltd. 1 PRE-FEASIBILITY REPORT FOR EXPANSION OF MANUFACTURING OF M.S. BILLETS AND TMT BARS FROM 10,000 TPM TO 35,000 TPM At F-12 Additional MIDC Area, Phase-II, Jalna, District Jalna, (M.S.) M/s. RAJURI STEEL PVT. LTD. EIA Consultant: Pollution and Ecology Control Services (PECS), Nagpur (MS).

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Page 1: EXPANSION - Welcome to Environmentenvironmentclearance.nic.in/.../19_May_2017_155315320ZVUYQU6WPF… · Pre-Feasibility Report: M/s Rajuri Steel Pvt. Ltd. 3 1.2 PROJECT DISCRIPTION:

Pre-Feasibility Report: M/s Rajuri Steel Pvt. Ltd.

1

PRE-FEASIBILITY REPORT

FOR

EXPANSION

OF

MANUFACTURING OF M.S. BILLETS AND

TMT BARS FROM 10,000 TPM TO 35,000 TPM

At F-12 Additional MIDC Area, Phase-II, Jalna,

District Jalna, (M.S.)

M/s. RAJURI STEEL PVT. LTD.

EIA Consultant: Pollution and Ecology Control Services

(PECS), Nagpur (MS).

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Pre-Feasibility Report: M/s Rajuri Steel Pvt. Ltd.

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1.0 INTRODUCTION

1.1 PREAMBLE:

Rajuri Steel Pvt. Ltd. was established, in the year 1994. The company has been the

Industry Pioneer in innovative and highly durable products in TMT Bars. Credited with

setting up one of the largest steel bar manufacturing ventures in Jalna region,

Maharashtra, the company has always strived to provide quality standards that can

compete with the best in the world. Rajuri Steel manufactures High Strength Deformed

(HSD) steel bars of varying grades: Fe 415, Fe 500 and Fe 550 (with elongation values

more than 14.5%) in 8mm to 32mm sizes. The existing Management took over the

Company in the year 1999 and continuously modernized and expanded it. Today it is

producing world class TMT Bars. It has bought Thermex Technology from H & T

Engineers, Mumbai (Indian counterpart of Thermex, HSE, Germany) having installed

capacity of 72,000 MT pa. The TMT Bars produced by the Company are marketed under

the Brand “RAJURI 500”. The Brand is established since last 5 years and is a leading

one on national level due to its consistent quality. It commands substantial premium over

others in the market. The company now plans to expand its business by expanding the

production of M.S. Billets and TMT Bars. Also the in house consumption of M. S. Billets

into TMT Bars will reduce the production cost of the company.

Areas for growth in various segments:

Following are the sectors in which the M. S. Billets are extensively used

Building & Construction

Industrial / Engineering

Other Sectors :

Architectural

Mechanical works

Electrical Engineering works

Forging Industries as Value added Steels

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1.2 PROJECT DISCRIPTION:

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

Sr.No.

Name Existing Proposed Total

1. M.S. Billets 10,000 TPM 25,000 TPM 35,000 TPM

2. TMT Bars 10,000 TPM 25,000 TPM 35,000 TPM

Raw Material

The key raw material required is Sponge Iron and Scrap, which can be locally procured

from the vendors directly. Processing of sponge iron and scrap material is economically

viable, because of high value of raw materials and the relatively low cost of processing.

SITE DESCRIPTION:

The plant of M\s. Rajuri Steel Pvt. Ltd. Was established to manufacture and process

M.S. Billets and TMT Bars. The factory is located at F-12 Additional MIDC Area,

Phase-II, Jalna, District Jalna, (M.S.).

SITE LOCATION & ITS ADVANTAGES:

• The proposed unit will be located at MIDC, Jalna. The place is very well

connected by road to neighboring cities. This will be of immense use for

transportation of produce and will accordingly help to reduce the total cost.

• The water required for the unit is available from MIDC & own captive lake.

• Further due to ever growing population and Construction industry the unit is very

much viable.

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75°50' 75°55'

19°55'

19°50'

19°45'19°45'

75°50' 75°55'

19°50'

19°55'

RESEVED FORESTR.FR.F

R.F

STREAMS

RIVER / NALA

PONDROAD

HABITATION

GRID

PROJECT SITE

FOREST BOUNDARY

RAILWAY

INDEX

N

PREPARED BY-POLLUTION AND ECOLOGY CONTROL SERVICES

10 KM. STUDY AREA

Plot no. F-12 Additional MIDC, Phase-II, Jalna

TOPO SHEET NO.47 M/13

Nidhana

Ghanewadi

Fanduiwadi kurdGavliwada

Gundewadi

Jamwadi

Kanhaiyyanagar

JALNADevmurti

Kharpudi

Gaulwadi

Rohaeadi

LondewadiSarwadi

Bethlam

RevgaonSamangaon

Antarwala

KajlaPankheda

Kumbephal

DevpimapalgaonSiraswadi

Dargaon

Javasgaon

Bhilpuri Budruk

Haldula

Matrewadi

Selgaon Davalwadi

Dinegaon

Nagewadi

Chandan Jhira

Rajewadi

Khadgaon

KeligavhanNajik Pangri

Mandwa

TatewadiPirpimpalgaon

ChitodaShindi Pimpalgaon

Mang Devulgaon

Vanjar Umrad

Dhavedi

Panshendra

Juna Jamwadi

Indewadi

Dal Nala

Kundalika

N

Kundalika

N

Talav

Muk

ta

SO

UTH

CE

NTR

AL

RA

ILW

AY

Main

Line

Moti

Talav

Talav

Industrial Area

Daregaon

Shravan

Ghanewadi

Talav

Nadi

• Due to the roadside location of the unit there is easy availability of other

infrastructure facilities like Power, Water, Labour, etc.

Figure 1: Study Area

COMMON FACILITIES:

M/s Rajuri Steel Private Limited is a private limited company incorporated under the

Companies Act 1956. The above said Promoters Group is a renowned Group from Jalna

involved in the manufacturing of TMT Bars.

Mr. Dinesh Rathi is one of the Directors; he is a Commerce Graduate. He completed

Diploma in Business Management (DBM) in the year 1996. He started his career in

business as trader in steel, fertilizers and seeds in the year 1997. Their past experience in

the said business is an additional benefit for the success of the said business. The

company has its processing plants, and modern computerized infrastructure, very sound

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financial base and well established office with experienced and professional executives.

The company has proposed to expand the existing production of M.S. Billets and Rolling

Mill at MIDC, Jalna. The hot billets manufactured which will be used in house (Captive)

consumption in manufacturing of TMT Bars. Construction industry is one of the biggest

consumers of M. S Billets and TMT Bars. Industrial & Engineering Industry, Mechanical

& Electrical Engineering works, Forgings Industry etc are some of the areas where

M. S Billets are used. The Proposed expansion will be a fully automated unit requiring

low labour and will be producing good quality M. S. Billets.

SOURCE & AVAILABILITY OF WATER:

Water will be sourced from MIDC / Own captive lake and the total water requirement for

the proposed expansion project will be 150 KLD.

POLLUTION CONTROL MEASURES:

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

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

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

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

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

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

• Dust suction system which will control fugitive emission due to material handling.

• Dust suppression system will be provided in the form of water sprinklers.

• All vibrating screens and weigh feeders below the hopper; day bins etc are covered to

prevent leakages of dust.

• Conveyor are covered to prevent dust pollution.

• All discharge and feed points wherever the possibility of dust generation is there is

provided with dust suppression system.

• Wet scrubbers and Bag Filters will be provided for the extraction of dust particles.

• During construction only domestic waste generated will be treated in packaged type

STP.

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

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

the plant premises.

• Domestic / sewage effluent shall be treated in packaged type STP.

2.1 INTODUCTION OF THE PROJECT AND BACKGROUND OF PROJECT

PROPONENT

Rajuri Steels Pvt. Ltd. was established, in the year 1994. The company has been the

Pioneer Industry in innovative highly durable products in TMT Bars. Credited with

setting up one of the largest steel bar manufacturing ventures in Jalna region,

Maharashtra, the company has always strived to provide quality standards that can

compete with the best in the world. The company now plans to expand its business by

starting its other unit for manufacturing of the raw material i.e. M. S. Billets for in house

consumption for manufacturing of TMT Bars. The location map is shown in Fig. 2 and

the details of the project are presented in Table 1.The satellite image showing project site

is given below in figure no. 3.

Source: mapsofindia.com

Figure 2: Location of Project Site

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Source: NRSA, Hyderabad

Figure 3: Satellite Image

Source: NRSA, Hyderabad

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Environmental Setting of the Proposed Project Site

SrNo

Particulars Details

1 Project Site Plot no. F-12 Additional MIDC , Phase-II , Jalna

2 Latitude 19°50'41.89"N3 Longitude 75°50'33.66"E

4 Elevation above MSL 534m

5 Toposheet 47 M/13

6 Present landuse Industrial land

7 Climatic conditions(Based on nearest IMD station dataAurangabad)

Annual Average Maximum Temperature : 400C

Annual Average Minimum Temperature :120C

Annual Average Humidity : 19-24 %Annual Average Rainfall : 600-700mm

8 Nearest Highway

State HighwayNearest State Highway is Aurangabad- Jalna-

Nagpur Highway 2 kms NE

9 Nearest Airport Aurangabad : 60 kms W.

10 Nearest Railway Station Railway Station: Jalna is at a distance of 6 Kms SE

11 Nearest Town Jalna 5.0 kms E.

12 Forest Reserved Forest : 8.5 km (E)

Reserved Forest : 5 km (NE)

13 Sanctuaries / National Parks /

Biosphere etc

Nil

14 Hills/ Valleys Nil

15 Streams / Rivers Kundalika River : 2.5 km (NE),

Mukta River : 7 kms (N)

Moti Talav : 1 km SE

Ghanewadi Talav : 5.5 Km N

Daregaon Talav : 3.5 Km SW

Shravan Talav : 8.5 Km SW

16 Defense Installations Nil

17 Historical Places Nil

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CRITERIA FOR LAND IDENTIFIED

• Existing Plant in operation in Notified Industrial Area.

• No Rehabilitation/Resettlement required.

• No National Park, Biosphere Reserve and Wildlife Sanctuary including

• No archaeological monument, interstate boundary and defense installation.

• No notified critically polluted area.

• No nallah/water body, public roads, forests within the project site.

• Availability of Raw Material.

• Availability of Water.

• Assured water supply by Captive own made Lake.

• Assured Power Supply.

• Market available for finished products.

• Availability of man power.

• Availability of industrial infrastructure.

2.2 JUSTIFICATION :

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

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

steel intensity in the country remains well below the world levels. Our per capita

consumption of steel is around 110 pounds as compared to 330 Pounds for the global

average. This indicates that there is a lot of potential for increasing the steel consumption

in India. To meet the increasing demand and to stimulate economic growth the proponent

has proposed the project.

As per the report of the Working Group on Steel for the 12 th Five Year Plan, there exist

many factors which carry the potential of raising the per capita steel consumption in the

country. These include among others, an estimated infrastructure investment of nearly a

trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase

in urban population to 600 million by 2030 from the current level of 400 million,

emergence of the rural market for steel currently consuming around 10 kg per annum

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buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv

Gandhi Awaas Yojana among others. At the time of its release, the National Steel Policy

2005 had envisaged steel production to reach 110 million tonnes (mt) by 2019-20.

However, based on the assessment of the current ongoing projects, both in greenfield and

brownfield, the Working Group on Steel for the 12 th Five Year Plan has projected that

domestic crude steel capacity in the county is likely to be 140 mt by 2016-17 and has the

potential to reach 149 mt if all requirements are adequately met.

Source: http://steel.gov.in/overview.htm. Ministry of Steel, Government of India.

2.3 EMPLOYMENT GENERATION (DIRECT & INDIRECT):

The total manpower required after the proposed expansion project will be 380.

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3.0 PROJECT AT GLANCE

1. Name of the proposed unit : M/s Rajuri Steel Pvt. Ltd.

2. Location of the proposed unit : F-12, Additional MIDC Area, Phase – II, Jalna

Tehsil : Jalna

District : Jalna

3. Products to be manufactured:

Sr.No.

Name Existing Proposed Total

1. M.S. Billets 10,000 TPM 25,000 TPM 35,000 TPM

2. TMT Bars 10,000 TPM 25,000 TPM 35,000 TPM

4. Raw Material Requirement :

Name of the Raw

Material

Existing Requirement

(TPM)

Total Requirement (TPM)

For M.S. BILLETS

MS Scrap 8320 29000

Sponge Iron 2080 7250

For TMT BARS

MS Billets 10,000 (in Molten Stage) 35,000 (in Molten Stage)

5. POWER REQUIREMENT:

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

for the existing project is 20,000KVA. Additional 40000 KVA power will be required for

the proposed expansion project.

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3.1 PROCESS DETAILS

Manufacturing Process of M.S. BILLETS & TMT BARS

Induction Furnace

The induction furnace is used to melt many different sorts of metals, from common steel

to more exotic alloys or precious metals. The greatest advantage of the induction furnace

is its low capital cost, its easier installation, simpler operation, no noise generation and

there is very little heat loss due to radiation from the furnace. The raw material (Sponge

Iron, MS scrap, Ferro Manganese and Ferro Silicon) is charged into the induction

furnace. As soon as the furnace is charged, the switches admitting power current to the

induction coil are closed.

After the furnace is switched on, current starts flowing at a high rate and a comparatively

low voltage through the induction coil of the furnace, producing an induced magnetic

field inside the central space of the coils where the crucible is located. As the magnetic

fluxes cut through the scraps and complete the circuit, they generate an induced current in

the scrap which is known as eddy current, this eddy current flows through the highly

resistive path of the scrap mix, generates tremendous amounts of heat and melting of

scrap starts. Soon a pool of molten metal forms in the bottom causing the charge to sink.

The induced current which is generated in the charge mixed and heated more

homogenously. As soon as the charge has melted clearly, any objectionable slag is

skimmed off, and the necessary alloying elements are added. When these additives have

melted completely, the power input may be increased to bring the temperature of metal

upto the point most desirable for pouring. The current is then turned off and the furnace

is tilted for pouring into a crucible. As soon as pouring has ceased the crucible is cleaned

completely from any slag or metal droplets adhering to the wall of the crucible and the

furnace is now ready for charging again. The temperature of the furnace will be 16500C.

When the total scrap as per the capacity of the crucible is molten, the sample is taken

from liquid steel and tested for the composition of steel and the carbon contents.

Therefore some additives of ferro-alloys like Silico-managanese, silicon, aluminum shots

and are added to the liquid steel to maintain the composition and quality. The billets in

the molten stage are transferred to rolling line for the production of TMT Bars bypassing

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the reheating furnace. The cooled TMT Bars are then inspected and dispatched. The

process flow chart is presented in the Figure 4.

Figure 4: Process flow Chart for Hot Billet Rolling Process

Advantages of Hot Billet Rolling Process

Energy saving is the main benefit as it consists in avoiding the normal cooling of the

billet down to room temperature and the reheating for initiating the rolling. Thus the

process is of less energy and more environmentally friendly.

Billets in molten condition will be directly fed to Hot Billet Rolling machine thus

saving of fuel & electricity.

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No additional increment in GLC for PM & SO2.

No need of storing fuel required in Gasifier for conventional Re-heating Furnace in

rolling mill

No generation of Fly Ash.

No space will be required for storage of Billets and fly ash.

Easy handling of Process.

Low operational cost of rolled steel depending on unit costs

Reduced civil works and infrastructure costs

Reduced energy consumption

Less man power required.

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4.0 SELECTION OF SITE & LOCATION OF PLANT

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

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

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

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

to be fulfilled.

i. Easy & nearer access to Raw Material such as Ores, Coke etc.

ii. Availability of water from continuous source.

iii. Power supply/ evacuation arrangement.

iv. Nearer access through road.

Site Selection Criteria

• Existing Plant in operation in Notified Industrial Area.

• No Rehabilitation/Resettlement required.

• No National Park, Biosphere Reserve and Wildlife Sanctuary including

• No archaeological monument, interstate boundary and defense installation.

• No notified critically polluted area.

• No nallah/water body, public roads, forests within the project site.

• Availability of Raw Material.

• Availability of Water.

• Assured water supply by Captive own made Lake.

• Assured Power Supply.

• Market available for finished products.

• Availability of man power.

• Availability of industrial infrastructure.

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4.1 LOCATION:

The proposed project is situated in Plot no. F-12 Additional MIDC , Phase-II , Jalna.

4.2 TYPE OF THE PROJECT:

The proposed project involves expansion of manufacturing of M.S. Billets & TMT Bars.

4.3 SITE ANALYSIS

LAND USE

The existing land is industrial land.

TOPOGRAPHY

The topography of the land is plain.

EXISTING LAND USE PATTERN

The existing land is industrial land.

EXISTING INFRASTRUCTURE

All required infrastructure is prevailing in the site.

GREEN BELT

The Company has already planted 1300 no. of trees in their premises. 33% of total land

will be developed as Green belt in and around the project site.

SOCIAL INFRASTRUCTURE

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

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4.4 Availability of Utilities

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

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

efficiently run the Equipment.

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5.0 Water System & Plant Utilities:

5.1 Source of Water

Water required for the plant will be drawn from MIDC & own captive lake.

5.2 Water Consumption

Water will be sourced from MIDC / Own captive lake and the total water requirement for

the proposed expansion project will be 150 KLD.

5.3 Fire Protection System

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

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

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

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

will be followed, as applicable.

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6.0 ENVIRONEMENTAL MANAGEMENT PLAN

6.1 Sources of Pollution

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

heads:

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

dioxide, NOX and Carbon monoxide, etc.

• Fugitive dust generated during vehicular movement

• Noise pollution

• Waste water and sewage

• Solid Waste Generation

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

environment are discussed below:

6.2 Pollution Control Measures

6.2.1 Air Pollution

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

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

water.

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

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

6.2.2 Water Pollution

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

cooling process and from air pollution control devices. This wastewater will be treated in

settling tank and will be reused in the process. The domestic effluent will be treated

through packaged type STP.

Zero discharge condition from the proposed plant will be maintained.

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6.2.3 Noise Pollution

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

generation may occur due to handling of raw materials and finished products. For that

Ear plugs/ ear muff will be provided to the workers working in noisy area.

6.2.4 Solid Waste Management

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

a. Slag (1000 TPM) from Induction Furnace

b. Tail Cuttings (750 TPM) from Rolling Mill

Disposal of Slag from Ferro Alloys:

Slag generated from Induction Furnace will be used for hardening of working area,

internal road , brick manufacturers, Concreting.

Tail cuttings generated from the Rolling Mill will be recycled in Induction Furnace.

6.2.6 Plantation

The Company has already planted 1300 no. of trees in their premises. 33% of total land

will be developed as Green belt in and around the project site.

During plantation landscaping pattern will be considered. The plantation scheme covers

the plantation of ornamentals plants and some local fruit bearing species.

Selection Criteria of plant species for Green Development Plant

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

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

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

characteristics in order to be selected for plantation.

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

2. The species should be wind firm and deep rooted

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3. The species should form a dense canopy.

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

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

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

belt.

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

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

surface.

9. Ability to withstand conditions like inundation and drought.

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

11. Attractive appearance with good flowering and fruit bearing.

12. Bird and insect attracting tree spacing.