INTRODUCTION

Steelex Electrocast Pvt. Ltd. intends to expand its existing unit of 1 x7 Mt

induction furnace by setting up 3 x7 Mt Induction Furnace along with Billet

Caster, 1 x 4 MVA Sub Merged Arc Furnace for Ferro Alloy along with a Re-Rolling

Mill in the WBIDC Plasto Steel Park in the Industrial belt of Barjora in the

district of Bankura. The main purpose of this plant will be to produce Billets to

be used in the Rolling Mill. Ferro Alloy product will be consumed by the Billet

Casting Plant. The proposed plant shall be equipped with one number of submerged

arc furnace of 4 MVA, three numbers of 7 Mt capacity Induction Furnace & 200 TPD

Rolling Mill with Re- Heating Furnace.

Steelex Electrocast Pvt. Ltd was incorporated on 20th December 2005. The company

is registered in Kolkata. The Main Promoters / Directors of the company are

Mr.Sunil Kumar Agarwal & Mr. Anil Kumar Agarwal.

Steel is traditionally considered the backbone of national economic development.

It is a major input into sectors which support economic growth such as

infrastructure, machinery, power and railways, as well as being important for fast

growing sectors, in particular automobiles and consumer durables. The steel

industry in India is currently at an inflexion point brought about by ambitious

capacity expansion plans, entry of new players and increased competition on one

hand and consistently rising and shifting demand patterns on the other. This rise

in demand is expected to be driven by the construction, automobile and consumer

durables sectors. In the construction sector Government spending in infrastructure

is expected to surge during the current plan period, thus driving up demand for

steel used in construction. Similarly, rising incomes coupled with rapid

urbanization have contributed to the increasing demand for automobiles and

consumer durables. With respect to supply, the Compound Annual Growth Rate (CAGR)

of crude steel production has doubled from 3% for the period 2000-04 to 6% in

2005-09. As a result, India has risen from being the seventh largest producer of

steel in the world in 2005 to the third largest in 2009.

PROJECT AT A GLANCE Name of the company : STEELEX ELECTROCAST PVT LIMITED

Registered Office : Sikkim Commerce House

4/1, Middleton Street,2nd Floor

Room no- 208 & 209

Kolkata – 700 071.

Constitution : Private Limited Company

Date of Incorporation : 10th Day of October, 2004

Promoters : The main promoter directors are Mr Sunil Kr.

Agarwal and Mr Anil Kr. Agarwal

Project : Induction Furnace – 3 x 7 MT

Ferro Alloy Plant – 1x 4 MVA Submerged Arc Furnace

Re- Rolling Mill – 200 TPD

Cost of Project :

(Rs. In lac)

Land & Land Development : 63.00

Building & Civil Work : 843.83

Plant & Machinery : 3613.00

Miscellaneous Fixed Asset : 1287.00

Contingencies : 170.00

Pre-Operative Expenses : 83.00

Margin Money for Working Capital : 714.77

TOTAL 6324.60

Means of Finance :

(Rs.In lac)

Promoters’ Contribution : 2024.60

Unsecured Loan : 3800.00

Term Loan from financial institution : 500.00

TOTAL 6324.60

Promoters’ Contribution : 40.00%

Debt Equity for Project : 60.00%

Requirement of Power : 28 MW to be sourced from Damodar Valley

Corporation

Manpower Requirement : 125 Direct Manpower

50 Casual Labour

Project : Billet Casting Plant

Ferro Alloy Plant

Re-Rolling Mill

Major Equipments : For Billet Casting Plant

a) 7 Mt Capacity Induction Furnace-3 Nos. b) Furnace Transformer c) Pollution Control System such as Bag

Filter.

d) Hydraulic Power Pack, Gears, Compressor e) EOT Crane & Magnet f) Electrical Panel & Distribution system

including Motors.

For Ferro Alloy Plant

a) 4 MVA Submerged Arc Furnace b) Furnace Transformer c) Raw Material Handling system d) Refractory & Castables / EOT Crane e) Hydraulic System/ Cooling Tower g) Electrical Panel & Distribution system

including Motors.

For Rolling Mill

a) Re- Heating Furnace b) Roughing Stand c) Intermediate Stand d) Continuous Stand e) Gear Boxes & Pinion Stand f) Cooling Bed/ Rolls/ Repeaters

Installed Capacity : Billet – 59,400 Mt/P.A

Ferro Alloy - Ferro Manganese-8,770 Mt/P.A

or Silico Manganese- 5,800

Mt/P.A or Pig Iron 10,360

Mt/P.A

Rolling Mill - 66,900 Mt/ P.A

Achievable Production : Billet – 53,460 Mt/P.A

Ferro Alloy - Ferro Manganese-7,895 Mt/P.A

or Silico Manganese- 5,220

Mt/P.A or Pig Iron 9,325

Mt/P.A

Rolling Mill - 60,210 Mt/ P.A

Power Supply : From Damodar Valley Corporation

Implementation Time : Twenty Four (24) months.

Profit before tax at

targeted level of

production.

: Rs.1399.70 Lacs

Break-Even

%

Cash

: 1st Year 2nd Year 3rd Year 4th Year

54.06 38.13 33.28 30.92

36.60 25.78 22.42 20.30

Debt-Service Coverage

Ratio.

: 3.00

IRR : 29 %

Payback Period : 4 Years & 4.4 months

PROMOTER & GROUP PROFILE

PROMOTER’S BIO-DATA

The promoter(s) of the company arrives from the well known business families. The

chief promoters Mr. Sunil Kr. Agarwal & Mr. Anil Kr. Agarwal is engaged in the

steel business in the name of Bengal Pipe & Steelex Electrocast Pvt. Ltd.

manufacturing of Steel pipes products, Steel Ingots for about 15 years & then

expanded the business in manifolds. Their existing business are also performing

well.

The said Company consists of the following two Promoters namely Mr. Sunil Kr.

Agarwal & Mr. Anil Kr. Agarwal. The brief profile of the promoters of the company

is as under:

A) Mr. Sunil Kumar Agarwal :

Father’s Name : Sri Kedar Agarwal

Age : 48 Years

Business : Manufacturing

Permanent Address : 92/93, Block B

Nalini Ranjan Avenue

New Alipore

Kolkata- 700053.

Other Directorship : M/s.Bengal Pipe Pvt. Ltd.

M/s.Embee Ferro Alloys P Ltd

B) Mr. Anil Kr. Agarwal :

Father’s Name : Sri Kedar Agarwal

Age : 36 Years

Business : Manufacturing Business

Permanent Address : 9, Jagmohan Mullick Lane

Burra Bazar

Kolkata- 700007

Other Directorship : M/s. Bengal Pipe Pvt. Ltd.

M/s. Embee Ferro Alloys P Ltd.

BIO DATA OF THE DIRECTOR

Name : Sri Sunil Kr. Agarwal

Father’s Name : Sri Kedar Agarwal

Address : 92/93, Block B

Nalini Ranjan Avenue, New Alipore

Kolkata- 700053.

Occupation : Business

Business Experience

He is a dynamic entrepreneur and started his carrier after completion of

academic life here in Kolkata in family business which was dealing in

trading and manufacturing of Steel products. Having succeeded in the field

of steel business, his vision went further to expand his business

activities.

Financial Status (Rs. in Lacs)

Investments :

Quoted Investments 4.00

Unquoted Investment 30.23

Loans & Advances 15.85

I T Refundable 0.78

T D S 00.58

T D S 00.09

Cash & Bank Balance:

Bank Balance 00.94

Cash in hand 00.02

Total Rs. 52.49

Less: Liabilities:

Unsecured Loan 4.22

Net Worth (as on 31.03.2014) 48.41

BIODATA OF THE DIRECTOR

Name : Mr. Anil Kumar Agarwal

Father’s Name : Sri Kedar Agarwal

Address : 9, Jagmohan Mullick Lane,

Burra Bazar

Kolkata- 700007

Occupation : Business

Business Experience

He is an enthusiastic as well as dynamic young entrepreneur and started his

carrier after completion of academic life here in Kolkata in family

business which was dealing in trading and manufacturing of Steel and other

minerals products. Having succeeded in the field of steel business, his

vision went further to expand his business activities.

Financial Status (Rs. in Lacs) Immovable & Movable Properties:

Land, Machine & N S C 4.16

Investments :

Quoted Shares 5.95

Unquotated Investment 28.96

Income Tax Refund 0.29

T D S 00.52

Unsecured Loan 19.51

Cash & Bank Balance:

Bank Balance 01.07

Cash in hand 01.65

Total Rs. 62.11

Less: Liabilities:

Unsecured Loan 08.75

Liabilities 01.70

Net Worth (as on 31.03.2014) 51.66

PRODUCT & MARKET

Steel production in India has increased by a compounded annual growth rate

(CAGR) of 8 percent over the period 2002-03 to 2006-07. Going forward,

growth in India is projected to be higher than the world average, as the

per capita consumption of steel in India, at around 46 kg, is well below

the world average (150 kg) and that of developed countries (400 kg). Indian

demand is projected to rise to 200 million tonnes by 2015. Given the strong

demand scenario, most global steel players are into a massive capacity

expansion mode, either through brownfield or greenfield route. While

greenfield projects are slated to add 28.7 million tonnes, brownfield

expansions are estimated to add 40.5 million tonnes to the existing

capacity of 55 million tonnes. Steel is manufactured as a globally tradable

product with no major trade barriers across national boundaries to be seen

currently. There is also no inherent resource related constraints which may

significantly affect production of the same or its capacity creation to

respond to demand increases in the global market. Matters of subsidies,

non-tariff barriers to trade, discriminatory customs duty (on exports and

imports) etc. may bring in significant distortions in the domestic market

and in the process alter the competitive positioning of individual players

in the market. The specific role of the state in creating market distortion

and thereby the competitive conditions in the market is a well-known issue

in this country.

BILLETS

Steel consumption of a country increases when its economy is growing, as

its government invests in infrastructure and transport, and the nation sees

building of new factories and houses. Construction industry accounts for

around 50% of the global steel consumption. Cars, which accounts for 13% of

the global steel consumption is the second largest consuming sector.

The main producing and consuming regions of steel have shifted from the

developed world to the developing regions with Asia accounting for more

than 55% of the global steel production. The five largest producers are

China, Japan , US ,Russia and India.

Steel is one of the most recycled materials, basically because it is

economical to do so and does not result in any loss of properties. It is

estimated that currently over a third of global steel comes from recycled

material. However, recycling rates vary a lot between countries with Spain

and Turkey producing nearly 90% of their steel from recycled material,

followed by Italy , the United States , South Korea , Russia/Ukraine and

Germany. The share of recycling-based production is estimated to be

considerably lower in China, India and Brazil.

Indian Scenario

The Indian steel industry has entered into a new development phase from

2005-06, riding high on a resurgent economy and rising demand for steel.

The sharp rise in production has lead to India becoming the fifth largest

producer of steel in the world, with a 2008 crude steel production of above

55 million tonnes. The growth phase in India's steel industry is expected

to pick pace further. India's steel consumption is projected to increase

annually by above 10% till 2012, fuelled by demand for construction

projects. The scope for raising the total consumption of steel in India is

huge, given that per capita steel consumption is only 40 kg - compared to

150 kg across the world and 250 kg in China. The National Steel Policy has

envisaged steel production to reach 110 million tonnes by 2019-20. However,

Ministry of Steel has projected that the steel capacity in the county is

likely to be 124.06 million tonnes by 2011-12 itself. Iron and steel are

freely exportable and importable as per current government guidelines.

India is estimated to have exported 4.6 million tonnes and imported 6.6

million tonnes of carbon steel in 2007-08.

Indian Steel Industry is a mix of large and small units using wide range of

technology. Industry can be categories as follows:

• Large integrated steel plants, which combine primary steel making and

rolling facilities. These plants use blast furnace-basic oxygen

furnace (BF-BOF) technology with coal, coke and iron ore as major raw

materials. Major ISPs are SAIL, TISCO, Rashtriya Ispat Nigam Ltd.

(RINL) and Vizag Steel Plant (VSP)

• Mini Steel Plants using Electric Arc Furnace (EAF) or Induction

Furnace (IF) technology. These are normally of small size, melting

metallic like steel scrap, DRI and pig iron. Some of these units have

rolling mills also as forward integration.

• Large numbers of re-rolling mills, who procure semis/scrap from the

integrated producers/ship-breakers.

Production and consumption of finished steel increased progressively as

mentioned below:

• Long products (where length to cross-section ratio is greater than 10

(viz. Bars/Rods, Wire-rods, Structural) constitute nearly 50% of

finished steel production.

• Majority of long products starts from Ingot/Pencil ingot depending on

the finished product size. • According to Joint Plant Committee’s report, nearly 50% of the total

domestic consumption is used by various rolling mills for manufacture

of long products. • In 2001-02, the estimated total production capacity available vis-à-

vis production in Induction furnace were of the order of 7.18 and

3.97 MT respectively, with a capacity utilization registered around

60-65%.

FERRO ALLOY

Ferro alloys are consumables required in the manufacture of steel. Ferro

alloys are used for manufacture of various types of carbon and alloy steel,

essentially to impart certain physical and chemical properties in a

particular grade of steel. These properties include change of tensile

strength, ductility, hardness, corrosion resistance; wear resisting or

abrasion resistance etc. Ferro alloys are also commonly used for de-

oxidation and refining of steel. Ferro Manganese (FeMn) is primarily used

this purpose and its demand is proportional to the production of steel.

Silicon Manganese is consumed for manufacture of carbon steel. It acts as a

double de-oxidizer and is ideally suited for steel making. Ferro-silicon is

used for de-oxidation and alloying of steel. Silicon increases the

hardness, ultimate strength, elastic and yield limit and oxidation

resistance of steel, but lowers the ductility. Silicon steels are widely

used for making springs. Siliceous transformer iron (with around 4 per cent

Si) is known to have relatively low power losses.

World steel production has gone up & based on the above trends, the steel

production is expected to grow in future. Presently, India has steel making

capacity of 50-52 million tons. Another 48.5 million tones of capacity

would be added after the implementation of some mega projects by POSCO,

TISCO,MITTAL AND JISCO. As per demand projections of the Ministry of Steel,

and estimates of made by industry experts, steel production under the base

case, average and best case scenarios for three years is expected to be:

Year Base Case Avg. Case Best Case

2011-12 80 82 85

2015-16 118 125 132

2019-20 172 189 205

As per MOIL’s projections, the projected Demand for ferro alloys in the

future shall be as follows:

Year Steel Production

(mn tons)

Ferro Alloys Demand

(mn tons)

Best Case Base Case Best Case Base Case

2007 50 50 0.84 0.84

2011 110 94 1.64 1.40

2020 200 172 2.97 2.55

STATUS OF THE INDUSTRY

The Industry’s capacity is estimated at 2.5 million tones as given below:

CAPACITY (Approx.)

Manganese Alloys

Ferro Silicon

Chrome Alloys

Noble Alloys

66 Units

37 Units

39 Units

36 Units

14,03,000 tonnes

2,45,900 tonnes

8,11,000 tonnes

25,000 tonnes

Total 182 Units 24,84,900 tonnes

Present working capacity (Approx.)

Manganese Alloys

Ferro Silicon

Chrome Alloys

Noble Ferro Alloys

55 Units

27 Units

22 Units

36 Units

11,07,250 tonnes

1,73,300 tonnes

6,17,500 tonnes

25,000 tonnes

Total 140 Units 19,23,050 tonnes

The projections made by the Ministry of steel in its vision 2020 document

projects the domestic demand ferro alloys in the country as follows:

Year FeMn

Lac Tons

SiMn

Lac Tons

Consumption Consumption

2008-09 2.863 3.68

2009-10 3.031 3.90

2010-11 3.220 4.14

2011-12 3.409 4.38

2012-13 3.612 4.64

2013-14 3.829 4.92

2014-15 4.06 5.22

2015-16 4.305 5.54

2016-17 4.564 5.87

2017-18 4.837 6.22

Based on the demand growth in ferro alloys, and the present supply

scenario, substantial capacities have to be established to meet the

domestic demand. Further, with closure of ferro alloys units in the

developed countries, additional replacement demand is also being generated

for Indian units. With availability of raw materials, power and manpower,

the country is well placed to cater to the growing needs of the market.

The industry produces around 1.5 million tones of Ferro Alloys.

25% to 30% of the production is exported.

India has sufficient raw material resources.

Industry has highly qualified manpower, latest equipments and

technologies, which have given recognition and position in the

international market.

Quality-wise rated one of the best in the world.

Unfortunately, being priced out in the international market primarily

due to one factor i.e., cost of electricity.

Electricity cost accounts 40 % to 70 % of total cost of production,

depending on the Ferro Alloys produced.

Need power at generation cost plus reasonable wheeling charges so

that it can increase its exports and earn substantial foreign

exchange for the country.

Need a level playing field by supplying power at international

comparable tariff i.e. at US 1 to 3 cents.

Based on data of effective utilization of installed capacity after

considering obsolescence of old production units, and also the fact that

the steel production is expected to go up in the medium term (after the

present lowdown is overcome), the ferro alloys capacities required to be

built to meet the projected demand shall be as follows:

Year Installed

capacity in MVA

Estimated Demand

(‘000 tons)

Additional

Capacity Required

(in MVA)

2010-11 1513 1400 203

2019-20 2755 2550 1495

From the above it is quite clear that additional capacities have to be

built up in the short and medium term, if the country has to meet the

growing demand from the steel sector.

World Scenario for production of Ferro-Alloys

With rapid industrial developments, the production of various types of

ferro-alloys is also steadily increasing. The increase in production of

ferro-alloys worldwide is a consequential effect since the production of

steel is also increasing.

International manganese trade has long been closely linked with the demand

of industrialization countries in Europe, North America, Japan and South

East Asia. In the early 1980’s a slowdown in steel production combined

with a decrease in manganese unit consumption resulted in a decrease in the

demand for manganese. This was partly compensated by new demands from China

and CIS, all wanting to upgrade their own resources. These trends, added to

the decrease in demand for ferruginous ore, increased the share of high

grade ore in world trade.

Out of a manganese ore production of over 34 million tons per year, 13

million tons come onto the international market. A few producing countries,

Australia, Brazil, Gabon and South Africa, account for over 85% of the

world’s supply. From the mid 1970’s South Africa, Brazil and Mexico

started upgrading their exports by locally processing part of the ore into

manganese containing ferro alloys.

Today most of the manganese requirements of industrialized countries are

supplied in the form of alloys. As a result the UK and Germany have has

almost completely abandoned local production of manganese alloys ad the USA

is now only a minor producer. In Europe countries such as France, Norway

and Spain have continued to be large exporters of these ferro alloys.

Higher investments in construction sector and infrastructure, sustained

growth in the automobile sector etc. have result in increase in the demand

of iron and steel products. Accordingly, higher growth is also expected in

foundry products. Projections of the pig iron demand in India for varying

time horizons between 2001-02 to 2011-12 have been made by various agencies

from time to time.

ROLLING MILL

With the view to increase its market share & to achieve its long-term

objectives, the company proposes to set up rolling mill along with this

steel integration. As a forward integration the company intends to set up a

Rolling Mill under one roof for manufacture of medium structurals & TMT

Bars with the idea of marketing the product in States of Eastern Region.

Various studies conducted by the reputed agencies with regard to the demand

of long products in the eastern region show that there is a substantial gap

between demand and supply and this would be even more as much as

constructional activities will take place in the next few years to come.

The end consumption of constructional steel in this country has lately

increased by a very great magnitude due to the government’s policies for

infrastructure development. The major consumers being the government dept.,

power unit and the expansion programme of the steel plants. In addition to

this other normal growth oriented construction programme like Housing

Complex, P.W.D. construction, Industrial Complex, Bridges etc. This large-

scale consumption rate has created a big gap in the total supply &

availability of rolled products.

CONCLUSION

In the given scenario with the upsurge in the steel industry both in the

international and domestic market as also the continuous shrinkage in the

availability of steel scrap, the demand of sponge iron and the bullishness

of its selling price would continue for the next couple of years say at

least up to 2018, based on the historical based frequency record in the

steel industry. Similarly, with the continuous increase in the demand of

finished steel products; the requirement of Billets/Ingots would also be

steady and accordingly the requirement of sponge iron in the coming years

by secondary steel producers would continuously increase in view of

globally/locally shortage of scrap.

SELLING ARRANGEMENTS

The promoter’s are having more than 25 years experience in marketing of

Iron and Steel Products. They are also having manufacturing facilities of

Iron and Steel products in different names in West Bengal. The company

proposes to sell the surplus semi finished to various Re-Rollers located in

West Bengal and neighboring states. The company will employ a team of

qualified and experienced marketing personnel for marketing of its

products. The promoters existing contacts and reputation in the iron &

steel industry will facilitate them in successful marketing.

PLANT CAPACITY, MANUFACTURING PROCESS & TECHNICAL KNOWHOW

PLANT CAPACITY

The proposed steel making plant through billet casting route has been

planned based on 1 nos. of 7 Tons (existing) along with 3 x 7 Mt(

Proposed) Induction furnaces with billet caster, 1 x 4 MVA Submerged Arc

Furnace for Ferro alloy & 200 tons per day Rolling Mill. The proposed Plant

will work for 310 days a year on triple shift basis. Capacity of the plant

has been worked on the basis of uninterrupted production, standard yield

and efficiency norms.

BILLETS PLANT

Induction furnaces : 3 nos.

Melting capacity of each furnace : 7 Tons

No. of heat per day : 11

No. of working days in a year : 310

No. of shifts : 3 shifts

Yield from charge to liquid steel : 90%

Installed capacity per year : 59,400 MT

Existing Induction furnaces 1 No

Melting capacity of furnace 7 Tons

Installed capacity per year 25,000 MT

Total Capacity Including existing 84,400 MT

The output of a steel-melting furnace normally depends on a multitude of

interrelated factors such as the quality of raw material, the composition

of steel to be produced, operation parameters, management of operation,

etc. While computing the production of mild steel from four (4) No. 7.0 T

capacity induction furnace with billet caster with adequate supporting

auxiliary & ancillary facilities, it has been assumed that the plant will

operate 310 days in a year and 3 shift operation a day. The proposed

induction furnace will have the capacity to yield about 61,230 tones of

liquid steel per annum as per the envisaged product- mix which at 97 per

cent yield from liquid steel to billets works out to about 59,400 tones.

As induction furnace plant involving such diverse activities as collection

and preparation of scrap, steel making, bottom plate setting, preparation

and arrangement of LRF in proper position during transfer of liquid metal

from the furnace. Taking these factors into consideration, it is expected

that the plant will operate at 70,80 & 90 per cent efficiency of the

installed capacity during the first, second and third year respectively.

RE- ROLLING MILL

Re- heating Furnace : 1 nos.

Capacity of furnace : 18 MT/ Hr

No. of working days in a year : 310

No. of shifts : 2 shifts

Installed capacity per year : 66,960MT

Based on the size of feed stock range and the product-mix envisaged, the

proposed mill shall essentially comprise a reheating Gasifire furnace, a

400 mm 3 stand 3-high roughing mill, a 280 mm 4 stand 2-high intermediate

mill, a 260 mm 2 stand 2-high finishing mill, a 260 mm 4 stand 2-high

continuous finishing mill, mill auxiliary equipment, TMT line and cooling

bed along with necessary balancing facilities.

The roughing mill shall be of three (3) stands and driven by a 1000 HP AC

motor through flywheel, gear box, pinion stand, spindles & couplings. The

intermediate mill shall have four stands & driven by a 800 HP AC motor

through a flywheel, gear box, pinion stands, spindles & couplings. The

Finishing mill shall have two (2) stands with speed increaser & couplings,

spindles & the continuous or finishing mill-II shall have four stands

driven by a 600 HP AC motor through a common gear box with connected pinion

housings for each stand, Mill approach roller table, Y-table, drop wall

arrangement are provided in first stand of roughing mill. The roughing mill

& intermediated mill-1 are positioned in one single line for easy bar

transfer. The continuous mills are positioned away from latter mills. After

rolling from continuous mill, bar is allowed to pass through TMT line, then

sheared to cooling bed length, collected in cooling bed and bars again

sheared to commercial length for store & dispatch.

The feed stock after heating in reheating furnace discharged to roughing

mill stand No.1 where to & fro pass continued and from 7th pas the material

is allowed to move over repeated form one stand to the other with one pass

in each stand. The approximate speed considered for roughing as 115 rpm,

intermediate mill-1 as 168 rpm, intermediate mill-2 as 262 rpm,

intermediate mill-3 as 394 rpm, continuous mill-1 stand No.1 as 567 rpm &

stand No.2 as 681 rpm and continuous mill-2 stand No.1 as 777 rpm & stand

No.2 as 1003 rpm. Besides the technological parameters as discussed above,

the capacity of the rolling mill shall depend on rolling rate of various

sections to be produced & the product-mix envisaged. To arrive at the plant

capacity, the rolling rate of popular section may be considered. Since the

product-mix constitutes 8 mm to 25 mm dia deformed bar and it has been

found that most of demand lies between 8 mm & 10 mm.

PLANT INTERNAL LAYOUT & BUILDINGS

The salient aspects of a plant general layout viz. storage & handling of

the major input materials and proper locations of the steel melting &

casting shops with respect to all the requisite facilities are discussed

here. The availability of infrastructure facilities has also been noticed.

Selection of Plant Site

The major factors, which need consideration while selecting a site, are as

follows:

i) Availability of adequate flat land for the proposed plant

and its rational future expansion.

ii) Sources of supply of raw materials & their delivered

cost.

iii) Proximity to finished goods market.

iv) Existence of rail & road connection in the vicinity for

transportation of incoming & outgoing saleable materials.

v) Availability of industrial infrastructure facilities,

e.g. power, water & skilled personnel.

vi) Economics of capital & operating cost.

Description of Site

The proposed plant having an area of 9.5 acres of land is located at

Barjora in the Dist of Bankura, West Bengal. The site is in close proximity

of the DVC power substation where power shall be provided. The proposed

location also enjoys the terminal advantage of being situated near the

Durgapur Industrial belt. It is also will connected through National &

State Highways to most of the important cities of the country. The site

thus combines many advantages, such as access to market, transportation

facilities, availability of manpower & other necessary infrastructure

facilities like electrical power and an already established industrial

environment. Water too is easily available.

Plant General Layout

The plant general layout has been developed with rational disposition of

production & auxiliary facilities; plant utilities & services and ancillary

buildings. A properly designed layout is essential for operational

efficiency, economical capital & production cost.

Major Consideration

In developing the plant general layout, expeditious movement of processing

material must be considered. The factors, which have been taken into

consideration, are indicated below:

i) Economical & uninterrupted receipt of incoming raw

materials & supplies; inter-departmental departmental

dispatch of in process material up to finishing stage and

disposal of plant wastes with minimum counter flow of

material particularly inside the shops.

ii) Logical location arrangement of production units, plant

services and ancillary facilities to ensure minimum

capital and operating costs both during the initial stage

and future expansion.

iii) Compactness of the plant layout minimizing the distance

of internal communication and inter plant handling of

processing materials without sacrificing operational

efficiency.

MANUFACTURING PROCESS

BILLET CASTING

The Charge

Sponge Iron & scrap constitutes the major raw material for steel making in

the induction furnace. This is because elimination of some element from the

molten is difficult in an induction furnace melting and in the case where

these are present in high quantities, a secondary metallurgical unit is

required to refine the metal up to a desired extent. The only exception is

phosphorus, when present in the molten metal cannot be eliminated even with

the help of a secondary refining unit and thus procurement of the

appropriate kind of raw material is of utmost importance in induction

furnace melting practice. The charge should be compact and should consist

of a number of small pieces of solid selected sponge mixed with clean

turnings, pig iron and a moderate amount of heavy melting of commercial

grade. This is to provide the initial conditions of a high flux path

through the charge for facilitating generation of heat and commencement of

melting.

Melting the Charge

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. The induced magnetic fluxes thus generated

cut through the packed charge in the crucible. As the magnetic fluxed cut

through the scrapes and complete the circuit, they generate and induced

current in the scrap. This induced current, as it flows through the highly

resistive path of the scrap mix, generates tremendous Amounts of heat and

melting of scrap starts. It is thus apparent that the melting rate depends

primarily on two things (1) the density of magnetic fluxes (2) compactness

of the charge mix. Varying input of power to the furnace, mainly the

current and frequency, can control the magnetic fluxes. In the medium

frequency the frequency range normally varies between 150 to 10 k

cycles/second. This heat is developed mainly in the outer rim of the metal

in the charge but is carried quickly to the center by conduction. Soon a

pool of molten metal forms in the bottom causing the charge to sink. At

this point, any remaining charge is added gradually. The eddy current,

which is generated in the charge, has other uses. It imparts a motor effect

on the liquid steel, which is there by stirred and mixed and heated more

homogenously. This stirring effect is inversely proportional to the

frequency of the furnace and so the furnace frequency is selected in

accordance with the purpose for which the furnace will be utilized. The

motion of the metal continues still all the charge is melted and the bath

develops a convex surface. However, as the convex surface is not favorable

to slag treatment, the power input is then naturally decreased to flatten

the convexity and to reduce the circulation rate when refining under

reducing slag. The reduced flow of the liquid metal accelerates the

purification reactions by constantly bringing new metal into close contact

with the slag. Before the actual reduction of steel is done, the liquid

steel which might contain some trapped oxygen is first treated with some

suitable de-oxidizer’s soon as the charge has melted clear and deoxidizing

actions have ceased, any objectionable slag is skimmed off, and the

necessary alloying elements are added. When these additives have melted and

then been diffused through the bath, the power input may be increased to

bring the temperature of metal up to the point most desirable for pouring.

The current then is turned off and the furnace is tilted for pouring into a

ladle. As soon as pouring has ceased, any slag adhering to the wall of the

crucible is scrapped out and the furnace is righted for charging again. As

the furnace is equipped with a tight cover over the crucible very little

oxidation occurs during melting. Such a cover also serves to prevent

cooling by radiation from the surface of the molten metal. Hence, the use

of slag covering for preventing heat loss and protecting the metal is

unnecessary furnace is that there is hardly any melting loss compared with

the Arc furnace.

Ladle Preparation

It is preferable to have quite a few number of bottom pouring ladles for

collecting liquid steel for teeming purposes. After teeming the skull is

removed from inner surface. The ladle is preheated by the oil fired ladle

preheated to a maximum temperature of about 10000 C according to the grades

of steel to be poured and estimated time of teeming. Preheating of ladle is

necessary mainly to prevent explosion due to generation of steam when

liquid steel is poured, to reduce the thermal shock to the bricks while

pouring hot liquid metal & to reduce the chilling effect.

Slide gate mechanism is adopted for bottom pouring from the ladle. A

refractory plate with a hole is made to slide on the nozzle surface causing

closing and opening of the flow of liquid metal. This sliding operation of

the refractory plate is made by means of hydraulic mechanism. The ladle is

prepared after each heat by patching of its refractory and changing the

slide gate. These ladles are lined with basic or neutral refractory. Since

the slide gate can be changed from outside, this can be undertaken in a

very hot condition of the ladle if needed. Hot ladle refractory can be

patched up and made available for the next heat within a short span of time

and in such cases ladle preheating is not required.

CONTINUOUS CASTING MACHINE

The molten steel from the IF or the ladle metallurgical facility is cast in

a continuous casting machine (6/11 2 stand Billet Caster) to produce cast

shapes including billets. In some processes, the cast shape is torch cut to

length and transported hot to the hot rolling mill for further processing.

Other steel mills have reheat furnaces. Steel billets are allowed to cool,

and then be reheated in a furnace prior to rolling the billets into bars or

other shapes.

FERRO ALLOY

Silico Manganese :

Silico manganese, an alloy of manganese with silicon and iron, is a semi-

product used for smelting of medium and low carbon Ferro-manganese. As has

been mentioned earlier, silico-manganese is also employed as a complex

deoxidant in steel making and (upon melting together with aluminum) to

produce a complex manganese-silicon-aluminum (M-K-A) deoxidant. The

composition of some grades of silico-manganese is given in Table 3-4. On

agreement with the consumer, silico-manganese Grades SMnI7, SMn14 & SMn10

may be delivered with phosphorus content up to 0.5%

The charge for making commercial silico-manganese is made up of manganese

ore, quartzite, dolomite and coke& coal. High manganese slag is used in

lumps with the content of manganese of 38-40 per cent. High grade

manganese ore & low grade manganese are employed for this

purpose.Quartzite, which should contain at least 94 per cent Si02 is

crushed to lump size of 5-50 mm and then washed to remove clay impurities.

Coke for the process should be graded, with particle size of 3-20 mm. The

content of carbon in silico-manganese is determined by its content in

silicon. The process for smelting silico-manganese essentially consists in

manganese and silicon being simultaneously reduced from manganese

silicates, slag, ore and quartzite. The process relies on a higher

temperature than that needed for smelting high carbon ferro-manganese. The

temperature of silico-manganese at tapping is 1500oC, whereas that of high

carbon ferro-manganese does not exceed 1350oC. Apart from the high

temperature, for successful reduction of silicon the process requires a

high concentration of silica in the slag, i.e. the operation should be done

with acid slags (43-45% Si02, 20-25% MnO, 10-12% CaO, 10-12% Al203, 1-1.5% MgO and 0.03% P205). The distribution of elements in a melt for foundry

silico-manganese, in percent, may be as follows:

Mn Si Fe P

Passes to melt 93 65 95 65

Passes to slag 3 30 5 5

Removed with gas 4.5 5 - 30

The metal and slag are tapped from the furnace every two hours by sand

casting. The metal and slag are tapped through two tap holes (in

succession) in a ladle lined with slag from a previous melt for Silico-

manganese. As the metal fills the ladle, the slag flows over into another

ladle placed nearby.

For Ferro Manganese:

The basic raw materials mixed with suitable reducers and fluxes are charged

into the submersible arc furnace .The furnace has mild steel fabricated

outer shell and an inner crucible of carbon lining where melting takes

place. Self baking furnace electrodes are submerged into raw materials

where melting takes place by flow of high current at low voltage through

copper bus bars. The operation of the furnace is controlled by adjustment

of penetration of electrodes in the furnace as also by charge of secondary

voltage of furnace transformer.

On reaching a temperature of about 50 oC, various chemical reactions starts

and smelted Ferro Manganese and slag at about 1400 oC are collected at the

bottom of the furnace. The molten alloy and slag are periodically tapped

through the tap holes provide at the bottom of the furnace lining. The slag

and metal are cast separately in cake form and transferred to metal & slag

yard for separating, sizing and packing before dispatching them to the

customer.

For Pig Iron:

The basic raw materials mixed with suitable reducers and fluxes are charged

into the submersible arc furnace .The furnace has mild steel fabricated

outer shell and an inner crucible of carbon lining where melting takes

place. Self baking furnace electrodes are submerged into raw materials

where melting takes place by flow of high current at low voltage through

copper bus bars. The operation of the furnace is controlled by adjustment

of penetration of electrodes in the furnace as also by charge of secondary

voltage of furnace transformer. On reaching a temperature of about 50 oC,

various chemical reactions starts and smelted Ferro Manganese and slag at

about 1400 oC are collected at the bottom of the furnace. The molten alloy

and slag are periodically tapped through the tap holes provide at the

bottom of the furnace lining.

Process flow chart Raw Stack Material QC yard ID Fan Ground Electrical Hopper Supply Dust Control Equipment Raw Material Stock House Substation Batching Furnace & Transform Weighing Low voltage FURNACE High current

To Furnace Electrode Separation QC Of slag & Alloy Cooling and Slag Disposal Alloy cooling & sizing Cleaning Despatch To QC Customers

ROLLING MILL

Rolling of TMT product is a process of converting the shape of feed stock

to desired finished section in hot condition by way of passing the material

between a pair of grooved rolls and providing suitable draft at various

stages. The whole rolling operation has to be conducted at a particular

temperature range and within a limited time span. The stages of rolling

operation are comprised of heating of feed stock to roll able temperature,

rolling the feed stock in different mill stands, cropping the hot bar

during process of rolling between mill stands and as applicable and

subsequently finished in the form of hot rolled deformed bar in straight

length. The hot bar coming out of last pass will be then conveyed through

TMT Line and collected in a cooling bed after shearing. The bars at almost

ambient temperature are sheared to commercial length, stored and kept ready

for dispatch.

ROD MILL WITH TMT FACILITIES

To produce 8 to 16 mm dia hot rolled deformed bar in straight length and

converting the same to TMT bar, it is proposed to use 100 mm sq. x 125 mm

sq. x 1.2 M long ingot weighing about 120 kg as feed stock. The semi-

continuous mills are equipped with cross-country primary & intermediate

mills followed by continuous finishing mills.

Stock Preparation

As mentioned the billet of size 10 mm sq. x 125 mm sq. x 1.2 M long shall

be used for production of all sections of deformed bars in straight length.

The ingot as received from external sources shall be checked on all surface

to keep it free from surface defect. Any defective material should not be

charged to reheating furnace. the ingots will be then stacked on charging

grid of the furnace.

Billet Reheating

Billets are charged from one end to oil fired reheating furnace by suitably

rated pusher and side discharged at the other after being heated and soaked

to desired rolling temperature level at 12000 C. In order to avoid

decarburisation on heating, the ingots are heated slowly and uniformly upto

8000 C and then rapidly to the rolling temperature level of 12000 C. At this

temperature, ingots are soaked properly for maintaining almost uniform

temperature across the cross-section for better deformation during

rolling.After soaking, ingots are discharged by means of an ejector to a

delivery table and from where with the help of roller table the ingots are

conveyed to the roughing mill stand.

Rolling

A Y-table is connected at entry side and a drop wall arrangement at exit

side of the first 400 mm roughing mill stand. Ingot from the furnace is

first conveyed over Y-table and enters to top pass of Stand-1. The bar

coming out shall turn 900 over drop wall and fall on delivery roller table

and enter the bottom pass. The bar will be conveyed out of bottom of Y-

table through flap and allowed it to travel over Y-table for top pass. Such

to and fro rolling in top and bottom passes in first stand shall be carried

out till a definite square section shall be obtained in sixth pass. The bar

will be then fed to 7th pass at top to get an oval pass and which will be

allowed to feed to bottom pass of stand No.2 over a repeater for formation

of a square. In stand No.3 an inter-stand repeater has been provided and as

such the square thus formed shall be fed to top pas of same stand formation

of an oval. The oval bar coming out second roughing stand will be then

allowed to pass through one pass in each 280 mm intermediate mill

comprising four stands. Repeaters are provided on either side of mill

stands for material transfer.The oval bar coming out of second stand of

Intermediate Mill shall be conveyed to pass through two 260 mm stands of

first Finishing Stand and with a repeater the bar will pass through to 260

mm continuous stands of second finishing stands form where 8 mm dia bar

shall be produced. Higher section bars shall be finished in previous stand.

The roughing mill speed shall be 125 rpm. The roughing mill stands shall be

driven by a 1000 HP A.C. motor through pinion stand & gear box, the four

(4) stand intermediate mill stands shall be driven by a 800 HP motor

through pinion stand & gear box. A speed increaser drives the first

continuous finishing mill while a 600 HP A.C. motor drives each stand of

second continuous mill. Depending upon the requirement, the speed in these

stands can be adjusted during process. 8 mm hot rolled ribbed bar shall be

finished from last stand of 260 mm continuous mill. The other size of the

deformed bar shall be finished from last stand of continuous mill.

Thermo-mechanical Treatment of Bar (TMT)

This process is extensively used in the rolling mill industry for

manufacturing directly deformed bar from the rolling mill and no cold

twisting is necessary. Both the grades Fe 415 & 500 can be produced using

TMT technology having mild steel billet/ingot as feedstock. In TMT process

hot bars are subjected to quenching by means of an intense cooling

installation (specially designed water spray system). This step hardens the

surface layer to martensite while the core structure remains austenite.

When the bar is free of water chamber heat flows from core to surface and

surface gets tempered to a structure called tempered martensite. In the

cooling bed due to atmospheric cooling, the hardened zone is tempered by

temperature homogenization in the cross-section and the austenitic core is

transformed to a ductile-ferrite-pearlite core.In the proposed plant the

hot bar from last stand shall be allowed to pass through TMT pipes

connected with set of high pressure flow controlled jet causing surface

quenching and surface layer hardens upto a well defined penetration depth.

Martensitic structure is formed on surface. After a crank type flying cuts

quenching the bar shear to suit cooling be length. While production of 8 &

10 mm deformed bar, the finishing speed being about 14.7 m/s. & 10m/s.

respectively, it is always necessary to reduce its speed to the acceptable

limit of cooling bed. The cut piece from flying shear shall be allowed to

pass through a pinch roll and a tail end speed breaker. The breaker engages

and rebases for a brief period depending upon bar speed and bar length. The

breaker can take two bars at a time and engage/disengage of breaking of

these bars can be taken up independently. After releasing the breaking bar

will smoothly enter into the cooling bed. In cooling bed the cut pieces are

stored for a pre-determined period of time for further surface cooling to

ambient temperature. However, here the heat from the core of the bar will

flow to the surface causing tempering. With the ambient cooling in cooling

bed the hardened zone is tempered by temperature homogenization in the

cross-section and the austenitic core is transformed to fine grained

ferrite-pearlite. The bar is then conveyed to a roller table to shear to

cut to commercial length. The cut pieces are then stored and kept ready for

dispatch.

PLANT LOCATION & INFRASTRUCTURE

LOCATIONAL ADVANTAGE

Basic considerations in deciding the location of plant site are listed

below in order of its significance;

• Nearness to source of main raw materials.

• Location of Consumers.

• Availability of sufficient of land with relatively flat terrain.

• Convenient Rail & Road Links.

• Perennial & Adequate sources of water supply.

• Availability of adequate power supply.

Amongst the major raw materials, coal is available near to the project

site. Suitable iron ore is also available in Orissa which is around 300 kms

from the site. After extensive study on the State and based on the

considerations of availability of suitable land, power, water and other

infrastructures, we have decided to set up the plant here.

UTILITY & FACILITIES

POWER DISTRIBUTION SYSTEM

Main Sub-Station

The power supply is intended from the Damodar Valley Corporation. Power is

taken by means of a cable to a panel switchgear which through one incomer &

three outgoing feeders will cater to furnaces & outdoor transformer for

feeding auxiliaries. The two outgoing circuit breakers, which will cater

to the furnaces, shall be of furnace duty. The third breaker will cater to

the auxiliary transformer. The auxiliary transformer through a set of bus

duct feeds the main L.T. board, which through itself and various downstream

sub-panels caters to the entire 415 V power loads in the plant.The

auxiliary transformer, as stated hereinbefore will cater to through 415 V

switchgear and power distribution boards, various auxiliaries of the

furnaces, water systems, compressors, pollution controls, cranes, cooling

apparatus, etc. The LT panel (415 V switchgear) and PDBS will house

appropriate circuit breakers, switch fuse units/molded case circuit

breakers, contactors and bimetallic replays for motors/other loads as

needed along with necessary metering, protection and controls. Necessary

cabling, earthing, lightning protection, illumination will all be duly

intended.

Major Electrical Eqipment

a) Circuit Breaker This will be an outdoor unit with its own control chamber. The unit

will be rated 145 KV, 3150 A with fault current level . Closing &

tripping coil for local/remote operation will be suited for 110 V D.C.

available from the substation battery bank & charger set.

b) C.T. , P.T. & GOD Switch

To be used in the outdoor switchyard, these will be of adequate ratio,

burden & current rating and be mounted on structures.

c) Power Transformer

This transformer will have H.V. bushing & will have a on load tap

changer taps + 5 to – 15% remote controlled by a R.T.C.C. panel.

d) Battery Bank & Charger, D.C. Distribution Board

110 V battery bank, rated for 150 AH with suitable automatic boost &

trickle charger and a D.C distribution board will be intended to provide

D.C. power to the supervisory control board. It is intended that circuit

breaker both of closing & tripping coil, will be controlled from the 110 V

D.C. battery circuits.

e) 415 Panels & Distribution Boards

These will be free floor standing sheet steel clad compartment type with

incoming and outgoing feeders mounted as in standard motor control center.

Power distribution boards will be located in melting & casting bays of

each furnace, pump & compressor rooms and other load centers. These will be

metal clad compartment type.

J) Push Button Units & Starter

When motors are away from the panel and/or control board but inside

plant shed and need be controlled locally; appropriate start stop push

button with proper enclosure will be located near each such motor. For

motor ratings higher than 30 HP the starter will be star delta type unless

otherwise mentioned, and Direct on Line starter shall be used for motor

below 30 HP rated. Starter shall in general be mounted in LT panels and

PDBS, but in the event the motor is very distant and away from the shed

local starter along with push button may also be intended near the motor.

Cabling

Cabling will be done through trenches inside the plant and substation

areas and by direct burial method outside the buildings and sheds. Cables

will be aluminum conductor XLPE insulated shielded type armored with a

steel strips. For medium and low voltage, cables will be 1100 V grade

polyvinyl chloride/XLPE insulated armored type with aluminum conductor for

power purpose and copper conductor for control purposes. In all cases

suitable support & protection have to be provided by means of pipes, kick

guards, etc. where cables are running above ground exposed a or below man

height levels and by means of bricks, form stones, etc. when laid

underground for direct burial use. At road crossings cables will be

protected inside Hume/G.I. Pipes of appropriate size at a level below 1000

mm of finished surface. Cables should have designation libels and they

should be properly joined at the terminals.

Protective Devices

Necessary protective relaying, metering, etc. shall all be provided. The

transformer will be additionally protected by differential and restricted

earth fault relay. On load tap changer with Remote Tap changing control

center with adequate control & protection facilities will be included. The

415 V LT breakers will be normally provided with over current and earth

fault releases. Low voltage motor circuits shall have appropriate short

circuit and overload protection as and where necessary.

Earthing

The earthing of equipment shall conform to the current Indian code of

practice and latest Indian Electricity Rules. Galvanized M.S. strips of

adequate cross-section to reduce the total resistance from any fault point

to earth and suitable for withstanding fault current shall be used.

Plant Lighting

The plant in general, is intended to be illuminated according to the

services requirements. The levels of illumination of different

sheds/buildings and outdoor/road areas shall depend on the nature of visual

work involved, ease of operation, passage, exits, etc. as the case may be.

Generally, high pressure sodium vapor integral lighting fixtures of

appropriate watt ratings shall be hung in plant sheds, control rooms.

Fluorescent fixtures will light offices and other rooms/enclosures.

Water

Water system for the integrated steel complex shall comprise the following:

• Makeup water

• Re-circulating water system

• Once through system

• Emergency water system

• Drinking water system

• Fire water system

• Dust suppression system

Water requirement:

Water will be mainly required for cooling of various equipment, evaporative

cooling system, dust suppression and other once through consumers as

described below:

i) Cooling of auxiliary systems like air compressor, DG set etc.

ii) Make-up water for re-circulation system for cooling of induction

furnaces.

iii) Furnace area heat exchangers.

iv) Make-up water for furnace DM plant.

v) Closed DM water circulation system for cooling of moulds & associated

parts of CCM.

vii) Semi-closed soft water re-circulation system for cooling of LRF

equipments & heat

viii) Semi-closed soft water re-circulation system for cooling of fume extraction ducts.

viii) Open contaminated waster circulation system for CCM cooling system.

xiv) Emergency water system.

For supplying cooling water for DR plant & cooling water for SMS adequate

space provision have been kept in the Plant General Layout for installation

of an intake well pump, raw water treatment plant, ground reservoir etc.

along with separate re-circulating system for captive power plant system.

The estimated make up water requirement to replenish the process and

treatment losses for the facilities are given below:

Sl.No

.

Description Plant make up

water demand

m3/Day

Drinking and

sanitation for

plant personnel

m3/Day

Total

M 3/Day

1 SMS 25 2 27

2 Rolling Mill 15 15

3 Ferro Alloy 20 20

4 Others including

green belt

Development Adm.

Building & colony

5 5

TOTAL 67

Source of Water : The water supply would be sourced from nearest source of

water through intake well and also, water will be made available from bore

wells inside the plant premises. In remote case of non-availability of

water plant will be operated through air cooled condenser system. Emergency water system:

Emergency water will be required to cool the vital parts of cooler during

the transition period between normal power failure and emergency power

supply, emergency water shall be supplied from a structural overhead tank

and is filled by cold water pumps.

Drinking and sanitary water system:

Drinking and sanitary water requirement for the plant will be met from

overhead tank. A portion of the make-up water will be chlorinated by

gaseous or liquid type chlorinator and is stored in the above overhead tank

for further distribution to consuming points and for fire fighting.

Fire water system:

The emergency water pipelines will be led throughout the steel division

complex for fire fighting. These fire fighting water pipelines will be

connected to the emergency water storage tank. In addition to the fire

fighting pipelines, additional fire hydrants would also be provided at

suitable locations.

Dust suppression system:

The dust suppression will be carried out by sprinkling water on the raw

material stockpiles etc. Dust suppression will be accomplished by make-up

water as well as cooling tower blow downs from time to time, thereby

reducing the make-up water requirement.

Distribution pipe work:

In general mild steel pipes are being considered for re-circulating and

make-up water piping. Mainly buried pipes are considered except for shop

internal pipes and the pipe work shall comprise all necessary valves,

fittings, hydrants etc.

Fire Protection System

Fire protection system for the proposed plant comprises portable fire

extinguishers of various capacities containing agents such as CO2, DCP etc.

and will be located at strategic points of the plant.

Dust Extraction System

Dust extraction system will be provided at material transfer points. The

generated dust during material transfer in various conveyors will be

collected in bag filters and the collected dust will be disposed at

suitable locations. The bag filters will consists of suction hoods, duct

work, fans bag filters, filter cleaning devices by compressed air, bag

houses etc. It is proposed that the dust from the dust silo below the bag

filter hopper shall be collected in closed trucks through rubber hose

connected below the discharge gate of the dust silo.

ENVIROMENTAL ASPECTS

Principal sources of pollution, nature of pollution and proposed measures

required for meeting the prevailing statutory requirements of gaseous

emissions, waste water discharge characteristics, noise level etc. for

environmental management purpose in connection with the installation of

project.

1. For Billet Plant

2. Ferro Alloy Plant

3. Rolling Mill

Pollution prevention and control measures for each of the section are

enumerated below:

GENESIS OF POLLUTION:

The genesis of industrial pollution can be assessed from the project

concept described in earlier paras. The specific aspects, which need to be

looked into for assessing the pollution potential are:

(i) Physical-chemical characteristics of raw materials,

(ii) Manufacturing technology involving a set of physical and chemical

conversions of raw materials and lastly,

(iii) The generation of all types of wastes, namely, gaseous, liquid and solid having specific characteristics.

IDENTIFICATION OF POLLUTION SOURCES:

From the description of the proposed plant and facilities described in

earlier chapters and the genesis of pollution described above, the entire

plant as envisaged in the report is divided into several sub-areas of major

production units/activities as follows:

1. Raw material handling section (RMHS)

2. Finished product-handling section (FPHS)

3. Process System such as Furnace.

The mitigative measures envisaged for pollution control as well as

environmental protection for the proposed project will be outlined.

FOR BILLET PLANT

The air pollution, prevention and control measures are described below.

Raw material handling system

The fugitive dust emission due to scrap handling from the stockpile of raw

materials in the open are will be controlled by dust suppression water

sprinkling. The other fugitive dust emission sources such as material

transfer points, etc. will be equipped with dust extraction systems.

STEEL MELT SHOP

Pollutants expected to be generated are:

i) Dust laden fumes from induction furnaces and ladle.

ii) Scale & Oil from CCM.

iii) Solid slag from induction furnaces.

AIR POLLUTION, PREVENTION AND CONTROL MEASURES:

The air pollution, prevention and control measures are described below.

Expected amount of air & fumes from 4 nos. : 5000 Nm3/hr.

Induction Furnace.

Expected dust load in the fumes : 4-5 gms/Nm3

Expected temperature of fumes : 100°C

Pollution Control Devices

Requirement of pollution control for this project is removal of dust

particles from the fumes before releasing the same to the atmosphere.

Requirement of pollution control for this project is for removal of dust

particles from the fumes before releasing the same to the atmosphere. In

this case the most practicable system considered is Dedusting with Bag

House. This system is required in order to meet the SPM specification laid

down is less than 50 mgm/Nm3.

A swiveling hood fume extraction system will be provided for air pollution

control. Swiveling hood will be provided on the top of the furnace at about

1-1.5 meters height without disturbing the furnace loading and periodic

poking operations. The dust and fumes generated together with sufficient

quantities of atmospheric air is extracted by the fume extraction system.

The fume extraction system will be designed in such a way that outlet air

emission will be 100 mgs / Nm3. Stack height will be apx. 30 meters.

Scale is separated from cooling water in Scale Setting Tanks. Scale is sued

as a charge to EAFs, filling of low lying areas and dumping in the used

mines. During external cooling in CCM, water comes in contact with grease

and lubricating oils. Therefore, quantity of oil & grease is also to be

removed from the water before it can be re-circulated. This is done by

removing greases and oil from top of the water surface in oil catcher

tanks. This comes out in the form of sludge. The sludge is dumped in low-

lying areas of the plant. Hard water requires soften. Softening plant has

to be regenerated after every cycle. This process generates some quantity

of saline water and backwash. Backwash is proposed to be treated by adding

alum and other coagulants in a ground tank and then released to low lying

areas inside the plant boundary. The plant sanitary sewage from ablution

blocks etc. will be segregated from industrial waste and routed to the

sewage treatment plant through sewage network. The treated effluents will

be used for green belt development. The aim of pollution control measures

will be to ensure zero discharge such that no effluent is discharged

outside plant boundary.

FERRO ALLOY

The main source of pollution in the manufacturing process is the furnace.

Though there are no specific guidelines for installation of equipments for

controlling pollution, the unit has to keep emission levels within the

prescribed limits. For this purpose the unit is proposing to set up modern

pollution control equipments. The air pollution will be content within the

furnace as it would be semi-closed and the gases would go up through the

hood. There will be a damper, heat exchanger followed by bag filter, ID fan

and finally the 30mtr stag through which the emissions would pass before

being released into the atmosphere.

The sieve of the raw material handling plant shall be provided with dust

extracting system for controlling the dust generation during material

transfer to the day bins. The dust laden air shall be drawn by suction fan

and cleaned through bag filter system to maintain the emission particulate

matter within 150 mg/Nm3.The briquette plant shall be provided with dust

collecting hood and the dust laden air shall drawn through cyclone dust

collector the bag filer system by suction fan and filtered air discharged

through stack of 15mtr. Each Arc furnace would be provided individually

with fume collecting hood with charging ports and the gap between the hood

and the furnace top should be about 500mm.The fumes collected by the hood

shall be drawn through combustion chamber, heat exchanger, bag filter

system by a suction fan and discharge through stack of 30 mtr. Emission of

particular matter shall be restricted within 150 mg/Nm3. The cooling water

shall be recycled through septic plant to soak pit within the premises. The

diesel generator shall be provided with residential silencer and a stack of

3.5 mtr above the generator room.

Flow Chart for Pollution Control system Ferro Material For furnace Handling System Furnace Ground Hopes Furnace at 240OC Suitable Ducting Heat Exchanger Stock Dust House Control System Bag filter Pugmill as Brequetting as Batching Pallet plant & Weighing ID Fan Black Furnace as Raw material To Furnace Stack

Rolling Mill

Fume extraction system has become now a statutory obligation in various

industries especially in a steel-making unit. To combat this menace and

minimize abuse of the environment prevailing in the steel melting/casting

shop manufacturers are in the market with two types of fume extraction

systems.

i) Direct extraction of fume through a water cooled elbow

and ducting which is fitted on a hole on the furnace;

ii) Through suction hoods suitably located immediately

above the fume generating zone.

In the proposed plant fume will be generated at the induction furnace

crucible during

process. Fume generated shall be sucked through a hood/canopy suitably

located after the crucible and carried away by means of blower through

ducting system to the chimney for discharging to the atmosphere. The fume

extraction system shall comprise:

i) Hood/canopy

ii) Duct

iii) Exhaust Blower

iv) Chimney and other accessories

FLUE GAS DISCHARGING SYSTEM

A 30 M height chimney is provided to discharge the hot flue gas generated

in billet reheating furnace to open air after allowing the gas to pass

through recuperator and chimney.

NOISE POLLUTION PREVENTION AND CONTROL The major noise prose equipment’s are product screening through magnetic

separators, compressors etc. The noise control will be done in four ways,

namely

1. by selecting low noise prone equipment which would have leq level

below 85 dB(A) at 1 meter distance;

2. by dampening the vibrations;

3. by isolating the noise prone unit from the working personnel’s

continuous exposure; and

4. by administrative control, the administrative control would have a

major role to monitor the noise, take remedial measures and ensure

that no plant personnel is over exposed to noise.

POLLUTION CONTROL REGULATIONS:

Under the relevant provisions of Environment (Protection) Act, 1986 and

Rules thereunder, the Ministry of Environment & forests, Government of

India (MOEF) and its nodal agency Central Pollution Control Board (CPCB),

Government of India has been empowered to frame the pollution control

regulations and when necessary for environment protection and for health

and safety of the people. The concerned State Pollution Control Board

(SPCB) is required to enforce all such national regulations and any other

site specific regulation as stipulated by SPCB which are mandatory under

the relevant provisions of The Water (Prevention & Control of Pollution)

Act, 1974 and The Air (Prevention & Control of Pollution ) Act 1982 upon

the operator of the industry. The prevailing regulations pertaining to

operation of a sponge iron plant are as follows:

Air borne emissions

Air borne emissions form the plant shall be of such quantity that the

ground level concentrations of those air borne pollutants in the

surrounding areas (say, within 10 km aerial coverage) would remain within

the limits as presented in following table:

The allowable dust pollution in the closed working zone is dependent of

free silica content of the dust. The following limits apply for lime dust,

iron ore dust and coal dusts:

Coal dusts (less than 5 percent quartz) : 2 mg/cu.m.

Other dusts (less than 1 per cent

quartz)

: 10 mg/cu.m.

The allowable emissions of particulate dusts from the stacks to the

atmosphere are within 150 mg per Nm3. The regulation does not stipulate any

emission values of 502 and Nox, which need to be controlled only by

effective dispersion through tall stacks.

Noise emissions

The allowable noise emissions would be such that the ambient noise level

outside the plant boundary would remain within the following limits:

Lea dB (A)

Day time Night time

Industrial area 75 70

Commercial area 65 55

Residential area 55 45

Silence Zone 50 40

Source: MOEF’s Gazette Notification dated 26th December 1989.

OTHER MEANS OF ENVIRONMENT MANAGEMENT

Green belt development:

It is proposed to have at least 335 of the total area will be green belt

all around the plant site by planting suitable species of evergreen and

broad leaves type. Plantation is also envisaged on both sides of the plant

road. Adequate tree plantations will substantially abate the dust

pollution, filter the polluted air, reduce the noise and ameliorate the

plant environment. Where tree plantations will not be feasible, the unpaved

land shall be covered with grass and small height bushes in order to avoid

soil erosion.

Pollution monitoring

Necessary provisions would be made for routine monitoring of stack

emissions, quality noise level, water gravity as required by the

regulations and for monitoring environment management as implemented.

ENVIRONMENTAL MONITORING:

The emission levels from the stack and the ambient air quality around the

power plant will be periodically monitored. Further, the effluent quality

and noise levels will also be regularly monitored. Further, the effluent

quality and noise levels will also be regularly monitored. The instruments

and the equipment necessary for monitoring will be made available in the

plant laboratory.

PLANT SAFETY AND INDUSTRIAL HYGIENE MEASURES

The two aspects need to be given due attention at the time of detailed

engineering, meeting al the prevalent regulations of Factory Act and

recommendations made by the regulating authority. Fire protection systems

by means of providing fire hydrants, fire extinguisher at vulnerable points

within the plant boundary have been envisaged. No fire tender provisions

have been considered, as this would be made available from local

authorities. A first aid unit has to be considered for the operating and

maintenance personnel. All the necessary safety kits like hand gloves,

gumboots, aprons, helmets etc. need to be provided. Proper sanitation

facilities, rest room, adequate plant lighting is also envisaged for the

proposed project.

PROJECT IMPLEMENTATION

The expeditious installation of several production units for manufacturing

along with construction of plant buildings, utilities and services,

auxiliary facilities and ancillary buildings demand cooperation for

procurement of equipment, designing the buildings and equipment

foundations, award of all contracts and supervision of all construction

jobs at plant site. Taking all these factors into account, a project

implementation schedule has been developed to monitor the progress of the

work. The factors involved in its timely execution are discussed in this

chapter.

Steps Considered in Implementation

The major steps involved in the implementation of the proposed plant for

manufacturing steel ingots are: -

i) Arrangement for required finance of the project.

ii) Finalization of the layout for the proposed plant.

iii) Design of all plant buildings, auxiliary and ancillary

buildings, utilities and services.

iv) Issue of tender documents and specifications for all equipments,

selection of equipment supplier and placement of orders.

v) Finalization of arrangement for the construction of substation

for electric power supplies system.

In the construction and commissioning of the plant, the following major

steps are involved.

1. Organizational set up for the execution of the job. 2. Arrangement of all construction facilities at plant site. 3. Procurement of bulk steel, cement and other constructional materials

and other progressive delivery in accordance with the construction

schedule.

4. Obtaining foundation load and other relevant date of the major plant & equipment.

5. Preparation of tender documents for construction. 6. Issue of tender document and selection of contractors for handling

civil, structural, mechanical, electrical jobs as well as equipment

installation.

7. Erection of equipment including power supply system, distribution of power, water system and other utilities.

8. Recruitment of staff for operation of the plant. 9. Arrangement for necessary raw materials & supplies.

10. Trial run and commissioning of the individual units and finally the

entire plant.

Project Implementation Schedule

Construction planning has been made on the basis of delivery schedules of

major equipment, the volume of all construction jobs and a total completion

time of 12 months for the proposed plant from the go-ahead signal have been

considered. A construction schedule broadly indication the sequence of

major activities such as preparation of specification/drawing, receipt of

quotations, scrutiny of tenders, placement of orders, delivery schedule of

major equipment, civil & structural construction of all buildings,

test/trial run of the equipments and commissioning of the plant.

Commissioning of the plant

It has been planned to complete the installation & commissioning of the

plant in 24 month from go-ahead. The construction schedule has been

prepared on the basis of normal delivery periods of major equipment, volume

of civil & mechanical constructional jobs involved. In view of the long

delivery periods of some items of major equipment, it is imperative to

finalize the order for all such equipment at the initial stage of the

project. Completion of the project within the specification time frame can

be achieved only if all concerned strictly adheres to the delivery,

construction and erection schedules. For achieving it, the following time

bound schedule should be followed.

Procurement of Equipment & Installation

Depending upon the delivery of the equipments, the installation of other

plant facilities including auxiliaries and utilities like crane, teeming

facilities, weighbridge and weighing machines, electrical power supply &

distribution facilities, water system, compressed air system, etc. shall be

planned rationally to ensure timely implementation of the project. The

arrangement for the installation of overhead crane should be initiated

along with structural construction of the plant building. Similarly the

utility services, viz. the electrical system, water system, compressed air

system, etc. should be kept ready well ahead of the test & trial run of the

induction furnace.

Civil Works

The design & drawing of the foundation for the column and the gantry girder

of the production buildings should commence immediately after the go-ahead

signal. Leveling of site and soil testing activity have to be initiated

immediately. The construction of all buildings can proceed simultaneously.

On receipt of foundation load and other data, the furnace foundation job

and all other equipment can be taken up simultaneously and completed before

the equipment arrive at the site. The laying of internal roads & drainage

system should be completed expeditiously to facilitate bringing of

structural materials, equipment, raw materials, etc. work of the

construction of ancillary buildings and facilities should proceed

simultaneously.

Structural Steelwork

An appropriate & economic structural design of column & the main plant

buildings will be developed and the required quantity of structural steel

and other building materials should be procured in stages after the go-

ahead decision has been taken. Adequate steel materials should be available

by the time of structural fabrication commences and the drawings shall be

released in stage. A contract should be fixed along with the civil work,

the fabrication of columns etc. can be started. The fabrication and

erection of structural steel work should be completed within the allocated

time.

Equipment Erection

The arrangement fro procuring equipment should commence immediately after

the go-ahead. Equipment data (foundation, electrical, utilities, etc.) have

to be taken from the suppliers. The erection of the equipment should

preferably carried out under the guidance and supervision of the personnel

deputed by the equipment supplier, who will also be responsible for

commissioning the equipment and demonstrating and the fulfillment of

performance guarantee. In case of staggered and planned delivery of

components of individual equipment, the erection should follow the

schedule. Piping, electrical work and laying of refractory have to be kept

in view. As cooling water of the desired specification will be necessary,

the jobs relating to water treatment and its cooling should be completed in

time.

Management of the Project

It is always necessary to fix the responsibility of the project management

on suitable persons having a chief of the project who can monitor the

progress of work and spot decisions will have to be taken by him during the

site work progress whenever necessary for timely implementation of the

project. The critical areas that may cause delay should be identified

earlier and necessary steps must be taken to overcome the obstacles. It is

needless to mention that delay in execution of all interrelated jobs shall

increase the capital cost and therefore all likely delays should be avoided

as far as practicable.

PLANT MANPOWER REQUIREMENT

The efficient management of a Plant demands judicious manpower planning by

selection of qualified & experienced personnel based on appropriate

organizational structure, which clearly defines the functions and

responsibilities of individuals at various levels. This provides the scheme

for the next step viz. selection of personnel to run the plant. In

estimating the total manpower, all plant activities including

administration, plant operation, maintenance, quality control, safety &

security have been taken into account purely from technical &

administration grounds. Based on the above parameters, the total man-powers

and the annual wage bill for the proposed scheme is discussed in this

chapter.

The manpower requirement developed has been specially adapted to the

proposed scheme based on the following three aspects:

1. The annual production of the proposed plant shall be comprise of

Ferro Alloy, Billets and Bars & Rods. These will call for

multifarious activities in the plant as a whole specially charging &

material handling sections.

2. Number of men required performing various inter-departments but

multidisciplinary activities including plant of handling raw

materials, melting of metallic charges, casting of liquid, quality

control and other indirectly related jobs.

3. Requirement of personnel for administration, budgeting and financial control, purchase of input materials and sale of manufactured

products, security and labour welfare.

ORGANIZATIONAL STRUCTURE

For realistic estimate of manpower, on appropriate organizational structure

demarcating the duties & responsibilities of each senior plant personnel

engaged in a specific job needs to be considered. It was indicated that the

head of the organization will be Director who will formulate policies as

discussed in the meeting of Board of Directors and exercise overall

management control. The General Manager of all technical matters relating

to plant operations will assist him and Commercial Manager dealing with the

administration, finance, purchase, sales, etc. following the conventional

practice, plant management has been broadly categorized as technical by

General Manager and non-technical as Commercial manager.

Risk Analysis

Project Implementation Risk

The promoters have decoded to appoint consultant for supply of technology;

engineering & Project management services for this project. Selection of

process route has been finalized. Further the promoters have already

acquired 40 Acres of land for it integrated steel plant. Thus the unit is

not exposed to any major project implementation risk.

Operational Risk

Adequate production infrastructure ahs been planned in line with

technical feasibility report. Suppliers of plant and machinery shall

be guaranteeing rated out put parameters of the plant. As such no

perceptible risk is being perceived as far as achievement of

projected capacity utilization is concerned.

Profitability of steel primarily depends upon timely availability of

raw materials at reasonable price. Setting up the plant closer to the

sources can ensure this. Coke requirement shall be procured from West

Bengal, Jharkhand. Coke is also available from Dhanbad collieries.

Profitability of iron& Steel primarily depends upon timely

availability of critical raw materials at reasonable price i.e. Hot

Metal and Pig Iron. As this is a integrated unit as such there will

not be any hindrance for the same.

Commercial Risk

Considering past and present consumption of steel and country’s

further industrial and economic growth the demand of finished steel

as projected by the working group of iron and steel for 8th five year

plan and the task force constituted by the Govt. of India is 42

million ton for the year 2006-07 and 57 million ton for th 2011-12.

On the domestic front, consumption of steel would be a function of

the growth prospect in the end use sectors like construction,

infrastructure, white goods and automobile. These sectors are showing

sigh of growth. Keeping in view these trends it is expected to have a

steady steel market in near future.

With Steel Industry showing encouraging trends, which is expected to

continue for next 3-4 years, no major sales / commercial risk is

foreseen to the project.

There is a substantial gap between demand and supply of Pig Iron,

Sponge Iron and Steel Billets.

Management Risk

Supersmelt Industries Pvt. Limited is a closely held Company. The

Board consists of two main Directors i.e. Mr. Prabhat Kasera, Mr.

Manoj Kasera is a renowned businessman and is known for their astute

business acumen is having more than 30 years of experience in Iron &

Steel Industry. Further result oriented professional managers will be

appointed to ensure smooth functioning. As such the management risk

is considered as moderate.

Financial Risk

Appraisal of financial risks involves appraisal of the financial

strength of the unit based on its performance and financial

indicators like liquidity, profitability, gearing ratio and turnover

ratio. Besides, it is also necessary to study the movement of these

indicators over a period of time as also its comparison with industry

average. The principal source of financial risk is the generating of

its capital structure. It is measured by working out financial

leverage that refers to the mix of debt & Equity used to finance a

company’s activity.

In general higher the financial leverage, grater the interest

expenses components for the unit. An interest expense impacts

profitability and gives rise to larger amount of operating cash to

meet interest expenses.

Instant proposal is setting up a Greenfield project and as such trend

analysis is not possible.

SWOT Analysis

Strengths

Prabhat Kasera who is having presence in iron & Steel industry for

over 3 decades promotes Golden Castings & Ispat Limited.

The entire production of billets will be consumed in-house in making

Steel Rods, TMT Bars and Structural in its existing group companies.

Hence making billets is the backward integration for the group.

The company will be producing thicker size billets 100mm which is

produces by very few manufactures in the Steel Industries. Thickness

of the billets will enhance the productivity of the billets and hence

the marketability.

Proximity to sources of good quality iron ore, which plays a vital

role in cost and production process.

The company is setting up a captive power plant and hence it will be

able to save substantially, in the power cost. The entire power

generated will be consumed in-house thereby reducing the dependence

on outside parties.

Proposed process technology is well grounded and has been tried with

success at various plants.

Weakness

With mushrooming growth of steel units availability of quality Iron

Ore and non coking coal may pose problem.

Coke needed for manufacturing Pig Iron is having restricted

availability.

The power generation through waste heat gases needs fairly skilled

workmen, continuous availabilily of the same in view of many new such

plants under implementation might be a problem.

Opportunities

Infrastructure development is a thrust area for the government and is

under active implementation. For such development huge quantity of

iron and steel products are in demand.

Demand supply gap of Pig Iron; Steel Billets and Sponge Iron is

currently favorably placed.

The company will be generating power from Non-conventional resources

and hence will be eligible for carbon credits under the Clean

Development Machanism (CDM). This will also result substantial

economic benefits to the company in the long term.

With the electricity Act being passed, the company has the opting to

sell its surplus power if any to the Grid.

Threats

Delay in implementation of the project may lead to cost escalation

and may affect overall production and profitability.

Changes in Government policy.

Current revival process of Iron & Steel industry has result in

promotion of large number of similar products, which will intensify

the competition.

With inflation growing Government may initiate measures to increase

interest Rates.