Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
PRE-FEASIBILITY REPORT
MAHALAKSHMI PROFILES PRIVATE LIMITED [PROPOSED EXPANSION STEEL PLANT]
SY.NOS. 287, 288 & 289
OF
KALLAKAL VILLAGE, MANOHARABAD MANDAL,
MEDAK DISTRICT, TELANGANA.
2
INDEX
S.NO ITEM PAGE NO
1. Executive Summary 3
2. Introduction of The Project / Background Information 5
3. Project Description 9
4. Site Analysis 25
5. Planning Brief 26
6. Proposed Infrastructure 27
7. Rehabilitation and Resettlement (R & R) Plan 29
8. Project Cost 29
9. Analysis of Proposals (Final Recommendations) 29
3
1.0 EXECUTIVE SUMMARY
PREAMBLE: Steel being a basic commodity for all industrial activities, quantum of its consumption is
considered an index of industrial prosperity. Since independence, there has been a substantial
growth in the steel sector in India from 1.5 Million Tons in 1950-51 to about 40 Million Tons at
present. Additional steelmaking capacity of about 30 Million Tons /year exists in the secondary
steel sector. Despite the above growth in the steel sector, the per capita steel consumption
continues to remain at a level of about 27 kg only, compared to about 350 to 450 kg in the
developed countries and 40 to 100 kg in some of the developing countries. Further, with nearly
20% of the world population, India’s contribution is only of the order of 4% of world steel
production. Hence, short-term and long-term strategies are necessary in planning the
development of the steel industry in the country to improve the level of per capita steel
consumption. It is expected that with the measures taken by Govt. of India for promotion
consumption of iron and steel and expected growth of Indian economy the requirement of steel
will significantly increase and accordingly the domestic manufacturing capacity needs to be
increase. Considering the potential steel in India, Mahalakshmi Profiles Pvt. Ltd. decide to
expand the existing plant in Survey No. 287, 288 & 289 of Kallakal Village, Manoharabad Mandal,
Medak District. The following is the technological process route selected by MPPL:
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos.
287, 288 & 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing
plant is having valid Consent For Operation from TS Pollution control Board. Now the company
have proposed to expand the existing plant. The following are the details of production capacities
of existing and proposed expansion project:
S. No. Product Capacity
Existing Expansion After Expansion
1. MS Billets though Induction Furnace 90 TPD 621 TPD 711TPD
2. MS Skelp through Strip mill 165 TPD 534 TPD 699 TPD
3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD
4. Scaffolding -- 50 TPD 50 TPD
5. Galvanized Strips/Coils -- 300 TPD 300 TPD
6. Hot Dip Galvanizing of MS ERW Tubes -- 300 TPD 300 TPD
4
PROJECT DESCRIPTION:
SITE DESCRIPTION:
Mahalakshmi Profiles Pvt. Ltd. decide to expand the existing plant in Kallakal Village,
Manoharabad Mandal, Medak District. The existing plant is having land of in 8.30 acres. Now an
additional 10 Acres 27 Guntas of land is acquired for the proposed expansion which is adjoining
the existing plant. Total after expansion is about 19 Acres 17 Guntas. The present use of the
land is industrial.
CHOICE OF FUEL:
Furnace oil or Producer gas will be the fuels proposed to be used in re-heating for manufacturing
strips. High grade industrial coal through
COMMON FACILITIES:
The common facilities such as Administrative Building, Fire Water Reservoir and Fire Water Pump
house, Workshop Building, Water Storage Reservoir, Raw Water Pump House will be provided at
the site.
SOURCE & AVAILABILITY OF WATER:
The water requirement for the proposed expansion project will be met from ground water
sources. Permission from ground water department will be obtained.
POLLUTION CONTROL MEASURES:
The Fugitive emissions from the Induction furnaces will be sucked through suction hoods and will
pass through Bag filters and then discharged through stack. The dust will be pneumatically
carried to covered bins. The outlet dust emission will be less than 50 mg/Nm3. The flue gases
from the Strip Mill will be discharged into the atmosphere through a stack for effective
dispersion of emissions into the atmosphere.
Closed circuit cooling system will be adopted in SMS & Strip. Hence there will not be any waste
water generation from process and cooling. Sanitary waste water will be treated in septic tank
followed by soak pit.
Solid waste will be disposed as per norms.
PROJECT ECONOMICS:
The expansion Project Cost has been estimated at Rs. 150 Crores. The Project would be funded in
a Debt: Equity ratio of 65:35. The entire debt is assumed to be funded through Rupee Term
5
Loans. However, funding from the appropriate export credit agencies would be explored upon
finalization of the EPC Contract and the benefits would be passed through in the tariff.
2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION
2.1. IDENTIFICATION OF PROJECT AND PROJECT PROPONENT:
Mahalakshmi Profiles Pvt. Ltd., proposes to expand the existing plant by installing 2 X 20 MT
Induction Furnaces along with CCM for making 621 TPD (2,04,930 TPA) of MS Billets and New
roughing stand/Modernization activities for making 534 TPD (1,76,220 TPA) of MS Skelp and
installation of 3 new ERW Tube mills for production of 835 TPD (2,75,550 TPA) of MS Pipes and
installation of scaffolding workshop for production of 50 TPD (16,500 TPA) of Scaffolding.
Installation of Continuous Coil Galvanizing unit for manufacturing of 300 TPD (99,000 TPA) of
Galvanized Strips/Coils and installation of Hot Dip Galvanizing unit for manufacturing of 300 TPD
(99000 TPA) of Hot Dip Galvanizing of MS ERW Tubes. This feasibility report covers the techno
economic aspects of the complete proposed plant.
THE PROMOTERS:
Mahalakshmi Profiles (P) Ltd.:
The Company has its registered office at 1-9-8, I.D.A, Azamabad, Hyderabad, Telangana. The
Company is engaged in Manufacturing of Hot Rolled Strip, MS ERW Pipes & Tubes. MPL stands on
a foundation of skill and enterprise with experience of over five decades. The founder Late Shri
Mohanlal Agarwal is the first promoter of the steel industry in Andhra Pradesh. Over the last fifty
years we have combined technology with expertise to manufacture a wide range of steel
products geared to serve a variety of needs. In fact one of our group concerns, Mahavir steel
rolling mills, was the first to set up a re-rolling mill in the state of Andhra Pradesh. With a modest
turnover of Rs. 13.97 Crores for the year ended March 2002, the Company has registered a
turnover of around Rs. 269.85 Crores and net profit of 5.02 Crores for the year ended March
2018, and has targeted a turnover of Rs. 500 Crores for the year 2020. The company has
manufacturing at Kallakal village, Manoharabad Mandal, Medak Dist, Telangana. The company
now proposes expand the existing plant by modernization of Strip mill and Induction Furnace in
existing plant premises, setting up of new tube mill division along with strip galvanizing and hot
dip galvanizing facilities.
Promoters:
6
The company is promoted by:
1. Mr. Ramniranjan Agarwal
2. Mr. Vinod Kumar Agarwal
All the Promoters have a very strong background in steel industry. Each one of them has vast
experience in steel industry. The promoters have other manufacturing units which are all profit
making and have good market reputation. Here is brief profile of other companies of the
promoters:
Sri Shiv Shakti Alloys & Metals
The company is having 100 x 2, Sponge iron kilns in Veerlapalli Village, Shadnagar Mandal,
Mahbubnagar Dist. The unit is one of the biggest producers of Sponge iron in Andhra Pradesh,
For the year ended March 2008 the company had a turnover of 19cr with net profit of 4.0cr.
Mahalakshmi Alloys & Metal (P) Ltd.
Mahalakshmi Alloys & Metals Pvt. Ltd. Having registered office at H.No. 7-1-71/M/1, 3rd floor,
Guru Balaji Nivas, D.K.Road, Ameerpet, Hyd-16. The company is engaged in Mgf. of C.I.Castings.
The company was incorporated in 2004 and it started setting up of casting unit at Survey No. 825,
Chegur village, Kothur Mandal, Mahabub Nagar Dist. A.P in the year 2005. It commenced
production in Aug.2005 and achieved break even in 1st full year of operation. For financial year
ended March 2008.The Company has achieved turnover of 27cr and net profit of 0.60 cr. The
company is one of the leading manufacturers of Good Quality Ingot moulds in South India and
has a good market standing.
The company has diversified into trading of iron ore and is supplying iron ore to Maa Mahamaya
Industries, Vishakhapatnam, Concast Ferro Inc., Sirkakulum
MPL Cement & Sponge Pvt. Ltd.
MPL Cements & Sponge Pvt. Ltd. was taken over as a sick-unit and reinstated into operating
condition by the group. The company has a 30TPD Sponge Iron facility with pre-heater
technology. Recently, the cement grinding unit within the same facility has been commissioned.
The company is selling OPC and PPC cement under the brand name of MPL®.
Conclusion:
The promoters of the company are having presence in every field of Iron & Steel Industries. They
have foundry, re-rolling mills, Sponge Iron Plant, Induction Furnace, tube mills etc. They are
actively involved in trading of Iron Ore, Sponge iron, Pig Iron, Billets And other steel Products.
7
With their vast experience the promoters will have no difficulty in procuring raw material and in
day to day operation of the plant. The promoters have excellent financial standing and are rated
very highly by the banks.
2.2 BRIEF DESCRIPTION OF NATURE OF PRODUCT
The expansion proposal involves:
Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces
Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp by through Strip mill.
Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.
Manufacturing of 50 TPD (16,500 TPA) of scaffolding.
Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / coils.
Manufacturing of 300 TPD (99000 TPA) of Hot Dip galvanizing of MS ERW Tubes.
2.3 NEED FOR THE PROJECT AND IMPORTANCE TO THE REGION:
India is the world’s third-largest producer of crude steel (up from eighth in 2003) and is expected
to become the second-largest producer by 2016. The growth in the Indian steel sector has been
driven by domestic availability of raw materials such as iron ore and cost-effective labour.
Consequently, the steel sector has been major contributor to India’s manufacturing output.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for
continuous modernization and up-gradation of older plants and higher energy efficiency levels.
India’s crude steel capacity reached 109.85 Million Tonnes (MT) in 2014-15, a growth of 7.4 per
cent. Production of crude steel grew by 8.9 per cent to 88. 98 MT. Total finished steel production
for sale increased by 5.1 per cent to 92.16 MT. Consumption of total finished steel increased 3.9
per cent to 76.99 MT.
India produced 7.34 MT of steel in the month of September 2015, which was nearly equal to the
country's steel production in September 2014.
The steel sector in India contributes nearly two per cent of the country’s gross domestic product
(GDP) and employs over 600,000 people. The per capita consumption of total finished steel in the
country has risen from 51 Kg in 2009-10 to about 59 Kg in 2014-15. India's steel consumption for
FY 2015-16 is estimated to increase by 7 per cent, higher than 2 per cent growth last year, due to
improving economic activity, as per E&Y's 'Global Steel 2015-16 report.
The Government of India is aiming to scale up steel production in the country to 300 MT by 2025
from 81 MT in 2013-14.
8
The Ministry of Steel has announced to invest in modernization and expansion of steel plants of
Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) in various states
to enhance the crude steel production capacity in the current phase from 12.8 MTPA to 21.4
MTPA and from 3.0 MTPA to 6.3 MTPA respectively.
The Minister of Steel & Mines, Chaudhary Birender Singh , has reiterated commitment
of Central Government to support the steel industry to reach a production target of 300 Million
Tonne Per Annum (MTPA) in 2025.
The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology
Mission of India (SRTMI) in association with the public and private sector steel companies to
spearhead research and development activities in the iron and steel industry at an initial corpus
of Rs 200 Crores (US$ 31.67 million).
India is expected to become the world's second largest producer of crude steel in the next 10
years, moving up from the third position, as its capacity is projected to increase to about 300 MT
by 2025. Huge scope for growth is offered by India’s comparatively low per capita steel
consumption and the expected rise in consumption due to increased infrastructure construction
and the thriving automobile and railways sectors.
Chhattisgarh, Karnataka and Andhra Pradesh are rich in respect of minerals which is evident from
Iron Ore Mines existing these states. Hence, the Iron products like Iron Ore, Pig Iron, Billets,
Ingots, Blooms are available at lower transportation cost in Hyderabad. There are many mini
steel plant and Rolling Mills in this area consuming these items as raw material for producing
steels.
After formation of “Telangana State” in year 2014 and with increasing as Capital a huge demand
for steel and cement has created and recently, the overall development of infrastructure will be
there. This demand will further increase the gap between demand and supply of steel.
2.4 DEMAND – SUPPLY GAP
The product pipe will be used Oil gas exploration hence a lot of demand in various region in
south India.
2.5 IMPORTS V/S INDIGENOUS GENERATION
The product will be utilized in domestic purpose and some part will be exported.
2.6 EMPLOYMENT GENERATION (DIRECT & INDIRECT)
9
The proposed expansion project creates employment to 500 people during construction and 500
people during operation project.
3.0 PROJECT DESCRIPTION
3.1 TYPE OF THE PROJECT:
The expansion proposal involves:
Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces
Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp through Rolling mill.
Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.
Manufacturing of 50 TPD (16,500 TPA) of Scaffolding.
Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / Coils.
Manufacturing of 300 TPD (99,000 TPA) of Hot Dip Galvanizing of MS ERW Tubes.
3.2 LOCATION:
The proposed expansion project will establish in the existing plant premises and adjacent land of
Kallakal Village, Manoharabad Mandal, Medak District. The following are coordinates of the plant
site.
COORDINATES OF PLANT SITE
S. NO. LATITUDE LONGITUDE
1. 17°42'3.22"N 78°29'1.19"E
2. 17°41'57.66"N 78°29'0.91"E
3. 17°41'57.60"N 78°28'55.80"E
4. 17°41'52.50"N 78°28'55.60"E
5. 17°41'52.50"N 78°28'55.40"E
6. 17°41'54.20"N 78°28'50.00"E
7. 17°41'54.20"N 78°28'49.60"E
8. 17°41'54.10"N 78°28'49.10"E
9. 17°41'55.30"N 78°28'48.80"E
10. 17°41'55.40"N 78°28'49.40"E
11. 17°41'56.60"N 78°28'49.40"E
12. 17°41'56.70"N 78°28'49.60"E
13. 17°41'56.90"N 78°28'49.70"E
14. 17°41'56.60"N 78°28'47.00"E
10
15. 17°41'56.50"N 78°28'47.00"E
16. 17°41'55.90"N 78°28'42.00"E
17. 17°41'56.20"N 78°28'41.90"E
18. 17°41'56.80"N 78°28'46.70"E
19. 17°41'57.60"N 78°28'46.70"E
20. 17°41'57.50"N 78°28'48.20"
21. 17°42'0.80"N 78°28'48.50"E
22. 17°42'0.70"N 78°28'50.60"E
23. 17°42'2.00"N 78°28'50.90"E
24. 17°42'2.30"N 78°28'56.20"E
25. 17°42'2.20"N 78°28'56.20"E
26. 17°42'2.79"N 78°29'0.25"E
The topographical map of the plant site and surrounding 10 Km radius and Google map showing
plant are shown below.
12
GOOGLE MAP SHOWIN THE PLANT SITE
Plant site
3.3 SIZE OR MAGNITUDE OF OPERATION:
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos. 287, 288
& 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing plant is having
valid Consent For Operation from TS Pollution control Board. Now the company have proposed to expand
the existing plant . Unit 2 The following are the details of production capacities of existing and proposed
expansion project:
S. No. Product Capacity
Existing Expansion After Expansion
1. MS Billets though
Induction Furnace 90 TPD 621 TPD 711TPD
2. MS Skelp through
Strip mill 165 TPD 534 TPD 699 TPD
3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD
4. Scaffolding -- 50 TPD 50 TPD
5. Galvanized Strips/Coils -- 300 TPD 300 TPD
6. Hot Dip Galvanizing of
MS ERW Tubes -- 300 TPD 300 TPD
3.4. PROCESS DETAILS:
A) INDUCTION FURANCE [STEEL MELTING SHOP]
In Steel Melt Shop (SMS) Sponge Iron will be melted along with melting scrap and fluxes to make
pure liquid steel and than to mould it in required size billets. The shop consists of following
equipment and subassemblies:
Induction Furnaces: Induction Furnace is a device to melt the charge material using electrical
power. It consists of Crucible lined with water cooled induction coils, Electrical system to give
controlled power to induction coil, Hydraulic tilting system, Heat exchanger to cool the
circulating water, water softener for generating soft water, furnace transformer, Power Factor
improvement system and surge suppressor.
Ladles: Ladles are pots with refractory lining inside to withstand 1600 deg C temperature. It has
side arms so that it can be lifted with the help of crane. Ladles are used to stores the liquid steel
from Induction Furnace and take it for further processing. Ladles are with bottom nozzle and
pneumatically operated gate for discharge of liquid.
14
Cranes: Electric Over-head (EOT) cranes of various capacities are used to carry the
ladles/materials at different places. Cranes are used in Melting hall to charge melting scrap,
remove the ladles to the LRF, further to place it over the Tundish of the Continuous Caster, to
remove billets from the cooling bed and store at designated places, and also for other petty use.
Accordingly the sizes, capacity and number of cranes are decided.
Continuous Casting Machine (CCM): CCM is used to continuously cast the liquid steel in required
cross section and in length. It consists of Tundish, Mould, Bow with Withdrawal mechanism,
straightening mechanism and cooling bed, hydraulic system for withdrawal mechanism, water
sumps and cooling towers for water spray on the withdrawn section as well as on the cooling
bed. Dummy bar is provided to start the casting. Tundish is a rectangular vessel, lined with
refractory and having discharge nozzle with pneumatically operated gate. A stand is erected over
it where the ladle is stationed for discharging the liquid in it. Mould is of copper with water
cooled jacked. Its cross-section in the bottom is of the size of which billet is to be drawn. Initially
the dummy for of the same size is kept inserted. When the liquid steel is poured in the mould the
dummy bar is drawn slowly, so that the liquid steel in partially frozen state comes out of the
mould. Water spray nozzles are installed to spray water over the just drawn billet to cool it
further and to harden the skin of the drawn billet.
B) STRIP MILL
The primary function of the Hot Strip Mill is to reheat semi-finished steel slabs of steel nearly to
their melting point, then roll them thinner and longer through 8 successive rolling mill stands
driven by motors totalling 10,000 HP and finally coiling up the lengthened steel strip for transport
to the next process. The Hot Mill rolls billet pieces weighing up to 600kg between 100*100 and
160*160mm. Steel billet of up to 160mm thickness is rolled into strip as thin as 1.2mm up to 400
feet in length.
Raw Material Handling:
The raw material for making strip is MS square billets/MS Slabs. The billets are then cut using
liquid oxygen and LPG into smaller lengths as per the desired dimension of strip to be produced.
The cut-to-length billets are placed on a charging grate. With the help of a hydraulic arrangement
the billets are fed onto the conveyor and in turn conveyed to the pusher top.
Reheating Furnace:
Critical to the Hot Strip Mill is its pusher-type reheat furnace nominally rated to produce 30 tons-
per-hour. Heating this much steel from room temperature to 1150-1200°C consumes around 32
15
MT of coal each day. The cut length billets are placed on a roll line. When space is available in the
furnace, large hydraulic ‘pusher arms’ are engaged to move the billets into the furnace. Much of
the preheating of the steel is achieved by the hot exhaust gases rushing past the billets on the
way to the ‘recuperators’ above the charge door. Whatever heat is left in the exhaust gases
preheats the incoming combustion air to over 450°C in these massive heat-exchangers.
Conversely, in the heating zone the steel is primarily heated by the glowing-hot furnace walls. In
the soak zone, numerous smaller burners seek to maintain a uniform temperature within the
zones to equilibrate any cold spots in the billets. Refractory dividers help to physically distinguish
the zones, and thermocouple temperature sensors throughout the furnace. When the billet
reaches the ‘discharge door’ at the exit end of the furnace, the billet has been sufficiently heated,
the door opens and the ejector billet pushes the hot piece out of the furnace. The intensely hot
billet is placed on a roller table which carries it into the roughing mill.
Direct feeding of HOT Billets /slabs from CCM
Descaling:
After exiting the reheat furnace, the Billets/slabs passes through a descaling unit, an enclosure
employing two pairs of spray headers that blast the intensely hot billet with pressurized water to
remove the scale of oxidized iron that forms at the surface of the slab in the oxygen-rich
atmosphere of the reheat furnace. Shortly after descaling, a (relatively) small 2-hi rolling mill
called a scale breaker breaks up any scale that remains.
Roughing:
The roughing mill is made up of 5 rolling mill stands, two of which incorporate small vertical
rolling mills called edgers. Billets are heated in the furnace until they glow bright orange-yellow
are rolled through one stand at a time to produce so-called transfer bars suitable for finish
rolling. High-pressure water-jet nozzles clean the oxidized iron, or scale, from the surface along
the way. The two vertical stands, each incorporate edgers for width control and roll the bar from
five to six inches thick incrementally down to around an inch and a quarter, depending on the
customer’s ordered width, gauge, and steel grade.
Edging:
At the very high temperatures at which the steel is rolled in the roughing mill, it is very plastic
and ‘flows’ easily like cookie dough beneath a rolling pin. Consequently, as the Billets/slab is
reduced from five to six inches thick to the final bar thickness of few millimetres; bars tend to
spread width-wise by a few inches at their extremities, and by as much as an inch through the
16
body. The edgers serve to hold a uniform width through the bar’s length, and are powerful
enough to squeeze the bar as much as an inch narrower than the slab’s original dimension.
Finishing:
The Hot Strip Mill includes three finishing stands, which reduce the thickness of the transfer bar
down to the gauge required by the customer or the next process. The rolling speed is set to
allow the last stand to perform the final reduction at the finishing temperature, between 850° to
1000°C, specified to reach certain mechanical properties. By now, the steel has been rolled into a
flat strip as long as 200 feet. In contrast to the roughing mills, the finishing mills roll the transfer
bar in tandem, meaning each bar will be rolled through all three stands at once. The hot steel is
quite fragile as it is rolled and tension between the finishing mill stands must be closely
controlled at very low levels in order to avoid stretching or tearing the strip.
Coiling
The strip is passed through a pinch roll and the head end is mounted on a horizontal coiler. The
coil build up takes place until the desired weight of the coil is achieved. The coil is conveyed on
conveyors to the point of storage or use for the next process.
C) TUBE MILL
The coil as per desired width and thickness is received from the stock yard and loaded onto
decoiler. The end of the strips are sheared and butt-welded and fed into a storage cage. The strip
is passed through the forming section of the pipe mill and then into the Fin-pass section. In this
process, it gradually takes the shape of a round tube. Using the process of High Frequency
Induction Welding, the edges of the strip are heated and welded. The extra metal on the weld
seam is removed using a scarfing tool. The tube which becomes hot in the process is cooled in
the cooling chamber. The sizing section adjusts any deviation in the shape and size of the tube as
per desired levels. The tube is then cut to suitable lengths using a circular flying saw driven by
rack & pinion system. The cut-length tubes are then conveyed to a rack where they are bundled
and stored in the stock yard for dispatch.
D) CONTINOUS COIL GALVANIZING
Coils to be processed on either galvanizing line are charged, or loaded, onto one of two Pay-Off
Reels. The head of the coil being charged is welded to the tail of the coil being processed by a lap
seam welder. Between 1/32” and 1/4” of the two coils are over-lapped onto one another, and a
17
pair of high-voltage copper wheels, one above and one below, roll from one edge to the other,
melting the laps and pressing them into one another. The resulting weld is nearly flattened to the
gauge of each coil, but with a slight bulge in the center of the seam. The voltage applied between
the two dies and the speed at which they roll across the width of the strip are pre-programmed
in a computer as various recipes that are called up according to the gauges and grades being
processed.
After welding, the strip travels into the ‘Entry Loop Car’, or accumulator section, where enough
material is stored to allow the entry section to shut down for at least a minute and a half while
another coil is charged without slowing the process (annealing and zinc pot) section. The Loop
Cars for the #1 CGL travel horizontally, while the newer line employs multi-strand, vertical
accumulators.
Cleaning & Preheating
Before heat treating, the strip is cleaned of rolling oils and iron fines with rotating brushes and
diluted sodium hydroxide (caustic soap). The steel is preheated in the process section to a
relatively low temperature to further clean the strip surface and minimize the time needed for
the reducing zones to bring the steel up to its annealing temperature.
Burners in the Preheat section combust natural gas in open air to maintain zone temperatures as
high as 2250° Fahrenheit. Under normal operating conditions, the steel is in this section for only a
few seconds and never actually reaches this furnace temperature.
Producing ‘full hard’ galvanized steel requires striking a delicate balance between cleaning the
surface adequately for good zinc adherence and not sacrificing the strength desired by the
customer by allowing the steel grains to recrystallize. Costly low-carbon steel grades with small
additions of titanium are sometimes used because they anneal at relatively high temperatures
and can be thoroughly cleaned prior to coating.
Heat Treatment
Because most of feed-stock for the galvanizing lines is Full Hard from the 5-Stand, both units
incorporate processing steps to remove rolling oils, iron fines and surface oxides from the strip to
ensure good zinc adherence, and to anneal the material to achieve the combination of
formability and strength sought by the customer.
Immediately after the preheat section, the strip enters the ‘reducing zone’ where it is annealed
to achieve the customer’s physical requirements for formability in a heated atmosphere of 1 part
hydrogen, 3 parts nitrogen. The atmosphere prevents the growth of scale during heat-treatment,
18
actually ‘reducing’ light surface oxide back to iron. Heat is supplied by burning natural gas inside
sealed tubes above and below the strip, with the heat produced radiating from the walls of the
tubes out into the reducing zones. These zones are held at temperatures up to 1650° Fahrenheit,
and, under normal operating conditions, the product is annealed for less than a minute. Thin
strip at the #2 CGL may spend only 10 seconds in the reducing zones, while heavier gauges at the
#1 CGL may take a couple of minutes to reach the necessary temperature. The steel is heated to
temperatures typically in the range of 1300° to 1500° Fahrenheit.
Because the furnace is cannot achieve abrupt changes in temperature, specific limits are placed
on the scheduling of coils to ensure smooth transitions between products with different
annealing requirements. Since the annealing process depends on both time and temperature,
operators can ease the transitions by adjusting the speed of the line.
Immediately after annealing, the strip travels through cooling zones incorporating air jets and
recirculating fans before being directed down the ‘snout’ to the zinc pot. The objective is to cool
the steel to a temperature that roughly matches that of the molten zinc; too warm and the
coating’s adherence will be compromised by an overly thick zinc-iron transition layer; too cool
and the aluminum can begin to precipitate (freeze) out of the molten zinc and get picked up by
the pot roll, marking the steel.
Galvanizing
The facilities for coating steel are of the ‘hot-dip’ type, as opposed to electro-galvanizing, which is
a plating process comparable to chroming. After the steel has been thoroughly cleaned,
annealed, and cooled to a temperature that roughly matches that of the molten zinc bath, the
strip enters the zinc pot and travels around a ‘pot roll’ which redirects it up through an ‘air knife’
system. Coating thickness is controlled by blowing off excess molten zinc; the air pressure applied
to a tapered gap in the knife lips, as well as the distance between the knives and the strip,
regulate how much zinc is carried out of the pot on the steel’s surface. The height of the air
knives above the zinc pot is adjusted according to strip speed. Additional blow-offs called edge
baffles serve to prevent the excess zinc coating inherent to the edges from resulting in a
condition called ‘edge build-up’ that causes the coil to flare up at the sides, stretching the
material to the point that it will not lay flat during further processing.
The thickness of the zinc applied to the steel is specified by CSI’s customers as a coating weight,
in the unit of hundredths of ounces per square foot. An order for ‘G-60’ seeks 0.60 ounces of zinc
on every square foot of steel, which, when evenly distributed, equates to a coating thickness of
about one-half of one thousandth of an inch (0.0005”) per surface. Since the heavier coating
19
weights add as much as 0.004” (for G-235) to the overall thickness of the coated steel, aim
gauges at the rolling mills provide for this so the finished product will meet the customer’s gauge
requirements. The thickness of the zinc coating is measured with a Gamma-ray and fed back into
the computer which in turn adjusts the air knives to optimize the coating weight. Changes in
required coating weight, steel thickness, and even line speed are rapidly compensated for
automatically.
The ‘pot’ is replenished periodically with 1-ton ingots of 99.9% pure zinc. Massive induction
heaters in the basement maintain the pot at temperatures about 50 above the 800-degree
Fahrenheit melt point of the zinc. Small additions of aluminium improve the adherence of the
zinc to the base metal by inhibiting the growth of the brittle zinc-iron transition layer.
The strip travels more than ten stories straight up into the air out of the pot to allow time for the
zinc to solidify against the steel. Large fans in the cooling tower air-cool the freshly coated steel
before it is sent through a water-quench ‘shock roll’ tank.
Galvannealing
Products designated by an ‘A’ in their coating weight (for instance A-40) are ‘Galvannealed’, a
process wherein the just-coated steel’s surfaces are immediately reheated by open-air burners.
The zinc is baked into the steel until the two are alloyed, or metallurgically blended, with one
another at the surfaces of the strip. The finished product has a dull gray appearance due to the
large proportion of iron that has diffused to the surface.
Galvannealed product corrodes more readily than galvanized steel and is intended for end-uses
that will be painted, such as computer brackets and appliance panels. While hot-dip galvanize
must be chemically treated before painting, galvanneal does not. The alloyed layer is relatively
brittle and will tend to fracture and flake off (‘powdering’) if flexed significantly by a paint line or
roll-former.
Reheating is accomplished for this operation with a short, vertical, natural-gas furnace that is
positioned above each line’s zinc pot. Because of the limitations of these furnaces, line speeds
are slowed considerably when producing galvannealed steel and available coating weights are
normally limited to A-60 or lighter to ensure that ‘free zinc’ does not remain at the steel’s
surface.
Flatness Correction
Situated after each pay-off reel is a small uncoilerLeveler that flattens the head-end of the steel
by removing its coil-set, or memory of having been coiled up.
20
After the steel has been through the cooling tower and is roughly room temperature again, it
passes through a Tension Leveler much like that at the Pickle Line where the strip is tightly
worked up and down by a series of roll cassettes. Shape defects are removed from the strip as its
thickness is reduced by around one-half of one percent.
The #2 Galvanizing line includes a 4-hi skin-pass mill stand situated just in front of the tension
leveler to reduce strain marks and impart a uniform surface texture on the coated product,
subject to the customer’s specifications.
Final Processing
When required by the customer, a thin coat of rust inhibitor is applied to the strip as it travels
through the chem treat section after the tension leveller. A solution is squeegeed onto both
surfaces and then air-dried, inhibiting the formation of ‘white rust’ (water-stained zinc) for six
months or longer.
Just before final inspection, the product passes into the stamping area where, when indicated on
the schedule, the strip is printed periodically with the product’s specifications. The older line uses
four 16” diameter ink drums, while the #2 CGL incorporates an ink-jet printer for improved print
quality and greater flexibility.
When indicated by the customer, the strip is oiled after inspection. A spreader roll at the #1 CGL
squeegees oil evenly across the top surface of the steel shortly before it is recoiled, while the
newer line uses an electrostatic oiler. Oil is less expensive than Chem Treat, but it is not as
durable and is more difficult for the customer to clean from the strip. Typically, galvanize
products that will be painted are oiled, while end-uses calling for exposed zinc receive Chem
Treat.
Inspection
Before recoiling, the strip is inspected to ensure it is dimensionally sound, and that any surface or
shape defects are acceptable, based on customer- and end-use-specific criteria. Each line has a
small laboratory used to monitor the process on an ongoing basis. Rockwell Hardness tests are
performed on each parent coil to evaluate the annealing heat treatment and feedback is
normally given to the operator in time to adjust for the next coil. Additional tests are performed
to evaluate the coating quality; weighing a sample, chemically removing the zinc, then
reweighing the coupon confirms the coating weight; creasing a sample with a tight bend tests the
adherence of the zinc to the base metal. Periodic checks are performed to monitor the cleaner’s
21
detergent levels, the molten zinc bath’s aluminium and lead content, and the chem treat
solution’s make-up. Tensile test coupons to qualify Physical Quality steel are sent to the main lab
for evaluation.
The finished strip is recoiled and cut to the weight required by the customer.
E) HOT DIP GALVANIZING
Hot dip galvanizing is the process of coating pipe and fitting with a layer of zinc alloy in a bath of
molten zinc at temperature around 450 °C.
As ISO 1461, ASTM A123, and EN10240, the galvanizing process has its own built-in means of
quality control because zinc does not react with an unclean steel surface. So Surface Preparation
is a critical step.
Degreasing
A hot alkali solution, mild acidic bath removes organic contaminants such as dirt, paint markings,
grease, and oil from the metal surface.
Pickling
A dilute solution by heated sulfuric acid or ambient hydrochloric acid, removes mill scale and iron
oxides (rust) from the steel surface.
Fluxing
A zinc ammonium chloride solution, removes any remaining oxides and deposits a protective
layer prior to dip steel in bath.
According to ISO 1461, zinc coating thickness follows below form:
Steel thickness
mm
Local coating thickness
(minimum)
μm
Average coating thickness
(minimum)
μm
Average coating mass
(minimum)
g/m²
steel >6 70 85 610
22
3< steel ≤6 55 70 505
1.5≤ steel ≤3 45 55 395
steel <1.5 35 45 325
Galvanizing
ERW Pipe are completely immersed in a bath of molten zinc. The bath chemistry is specified by
ASTM B6, and requires at least 98% pure zinc, to form series of bonded zinc-iron alloy layers.
3.5. RAW MATERIAL REQUIRED:
The following will be the raw material requirement for the proposed expansion project.
S.No. Raw Material Consumption Source of Raw
Materials
Method of Transport
Induction Furnaces with concast
1 Sponge Iron 551 TPD From Sponge iron
plants
By Road (covered trucks)
2 Scrap 164 TPD Local By Road (covered trucks)
3 Ferro Alloys 6 TPD Local By Road (covered trucks)
Strip mill
1 Billets 587 TPD In plant generation Conveyors
2 High grade coal
thermal 32 TPD
Imported/Purchased
from Traders By Road (Covered trucks)
Tube Mill
1 MS Skelp 699 TPD In plant generation By Road (Covered trucks)
2 HR Coil 354 TPD
Purchased from
SAIL/TATA/JSW/
Other Manufacturers
By Road (Covered trucks)
Scaffolding
1 MS Tubes 47 TPD In plant generation By Road (Covered trucks)
23
2 Accessories/
Components 3 TPD
Purchased from local
Manufacturers By Road (Covered trucks)
Continuous Coil Galvanizing
1 MS Skelp 150 TPD In plant generation By Road (Covered trucks)
2 HR Coils 150 TPD Purchased from
SAIL/TATA/JSW By Road (Covered trucks)
3 Zinc
Hindustan Zinc/
Other reputed
Manufacturers
By Road (Covered trucks)
Hot Dip Galvanizing
1 MS ERW Tubes 300 TPD In plant generation By Road (Covered trucks)
2 Zinc
Hindustan Zinc/
Other reputed
Manufacturers
By Road (Covered trucks)
3.6. WATER REQUIREMENT AND ITS SOURCE:
The existing plant water requirement is 14.6 KLD and is sourcing from ground water. The
proposed expansion project water requirement will be 59.5 KLD. This includes Make-up water for
Induction Furnaces, Strip Mill, Tube mill and Domestic water. The water requirement for the
proposed expansion project will be sourced from ground water. After obtaining the approval
from the Ground water department only, water will be utilized. The details of total water
consumption, it's breakup is shown in Table below.
WATER REQUIREMENT
SOURCE Existing
in KLD
Expansion
in KLD
After expansion
in KLD
Cooling water make up for SMS 3 20 23
Cooling water make up for Strip mill 4 13 17
Cooling water make up for Pipe mill 4 13 17
Continuous Coil Galvanizing
Hot Dip Galvanizing
24
Domestic consumption 3.6 12.5 16.1
Total 14.6 59.5 74.1
3.7. QUANTITY OF WASTE GENERATED:
3.7.1 WASTE WATER GENERATION:
Closed circuit cooling system will be adopted in SMS, Strip mill & Tube mill. Hence there will not
be any waste water generation from process and cooling in the steel plant. Only waste water
generation will be sanitary waste water. Which will be treated in septic tank followed by soak pit.
3.7.2 SOLID WASTE GENERATION:
The solid waste generation and disposal method from the proposed expansion project will be as
following.
S. NO TYPE OF SOLID
WASTE
EXISTING
QTY.
(IN TPD)
EXPANSION
QTY.
(IN TPD)
AFTER
EXPANSION
QTY.
(IN TPD)
DISPOSAL PROPOSED
1 Slag
(from SMS)
9 62.1 71.1
Slag will be crushed and after
iron recovery the inert
material will be used in road
construction/given to brick
manufacturers
2 Mill scales
(from Strip
Mill)
8.2 26.7 34.9
Will be reused in SMS
3 Scrap from
pipe mill 8.2 41.8 50
Will be used in SMS
3.8 POWER REQUIREMENT
Power requirement for the existing plant is 7500 KVA being met from TSPDCL. Power required for
proposed expansion will be 15500 KVA and will be met from TSPDCL.
25
4.0 SITE ANALYSIS
4.1 CONNECTIVITY
Compo
nent
Description
Road The plant site approached by small road which connect NH-7 and Industry
Rail Dabilpur railway station is 2.8 Kms.
Air Nearest Airport located at Hyderabad which is about 70 km from the
proposed site. Sea
Port
The nearest sea port is Kakinada which is about 410 Km from the proposed
site.
4.2 LAND USE
The existing land is industrial land.
4.3 TOPOGRAPHY
The topography of the land is more or less flat without undulations.
4.4 EXISTING LAND USE PATTERN
The existing land is industrial land.
4.5 EXISTING INFRASTRUCTURE
All required infrastructure is prevailing in the site.
4.6 SOIL CLASSIFICATION
The soils of the district are mainly red earth comprising loamy soils, sandy loams and sandy clay
loams. Red laterite soils are present in Zaheerabad mandal. Black cotton soils comprising clay
loams, clay and silty clay are found around Gajwel, Sangareddy, Narayanakhed and Andole
mandals. The soils in undulated regions have patchy crop cultivation due to presence of rocks
and hills.
4.7 CLIMATIC DATA FROM SECONDARY SOURCES
The district experiences dry climate. The agricultural Year is divided into four seasons. March to
May constitutes summer season recording highest temperature; summer shower with hailstorm
is also received. The second period is South-West monsoon season (Khariff) from June to
September which decides the fate of Agriculturist and the maximum rainfall of the year is
received during this period and the wettest month is July. With summer showers received during
April-May months, the farmers start tilling the land and the sowing starts quite early by June.
The North-East monsoon (Rabi) is from October to the end of November. The post monsoon
season which coincides with winter will be from December to February.
26
5.0 PLANNING BRIEF
5.1 PLANNING CONCEPT
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos.
287, 288 & 289 of Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing
plant is having valid Consent For Operation from TS Pollution control Board. Now the company
have proposed to expand the existing plant. The following are the details of production capacities
of existing and proposed expansion project:
S. No. Product Capacity
Existing Expansion After Expansion
1 MS Billets though
Induction Furnace 90 TPD 621 TPD 711TPD
2 MS Skelp through
Strip mill 165 TPD 534 TPD 699 TPD
3 Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD
4 Scaffolding -- 50 TPD 50 TPD
5 Galvanized Strips/Coils -- 300 TPD 300 TPD
6 Hot Dip galvanizing of
MS ERW Tubes -- 300 TPD 300 TPD
5.2 POPULATION PROJECTION
Kallakal is a large village located in Tupran Mandal of Medak district, Andhra Pradesh with total
1612 families residing. The Kallakal village has population of 6482 of which 3323 are males while
3159 are females as per Population Census 2011.
In Kallakal village population of children with age 0-6 is 851 which makes up 13.13 % of total
population of village. Average Sex Ratio of Kallakal village is 951 which is lower than Andhra
Pradesh state average of 993. Child Sex Ratio for the Kallakal as per census is 998, higher than
Andhra Pradesh average of 939.
Kallakal village has higher literacy rate compared to Andhra Pradesh. In 2011, literacy rate of
Kallakal village was 67.86 % compared to 67.02 % of Andhra Pradesh. In Kallakal Male literacy
stands at 76.87 % while female literacy rate was 58.30 %.
27
5.3 LAND USE PLANNING
Existing plant is located at Sy.Nos. 287, 288 & 289, Kallakal Village, Manoharabad
Mandal, Medak District.
Land available for existing plant is 8 Acre 30 Guntas.
Now additional 10 Acre 27 Guntas land has been acquired for the proposed expansion
project which is land adjacent to the existing plant.
Total land after proposed expansion will be 19 Acre 17 Guntas.
5.4 AMENITIES / FACILITIES
Facilities like canteen, rest rooms are available in the existing plant as basic facilities to workers.
And same will be improved further.
6.0 PROPOSED INFRASTRUCTURE
6.1 INDUSTRIAL AREA
The main plant area comprises of Furnace sheds, Rolling mill area, Tube mill area, Scaffolding
work shop ,raw material storage and product storage etc.
6.2 RESIDENTIAL AREA (NON PROCESSING AREA)
No colonization is proposed; however, facilities like canteen, rest room and indoor games
facilities will be provided in the proposed plant and one Admin building is also proposed.
6.3 GREEN BELT
More than 1/3rd of total land availability is reserved for plantation i.e. greenery.
Greenbelt development plan
Local DFO will be consulted in developing the green belt.
Greenbelt of 33% of the area will be developed in the plant premises as per CPCB
guidelines.
10 m wide greenbelt is being maintained all around the plant.
The tree species to be selected for the plantation are pollutant tolerant, fast
growing, wind firm, deep rooted. A three tier plantation is proposed comprising of
an outer most belt of taller trees which will act as barrier, middle core acting as air
cleaner and the innermost core which may be termed as absorptive layer
consisting of trees which are known to be particularly tolerant to pollutants.
28
6.4 SOCIAL INFRASTRUCTURE
Social infrastructure will be developed as per need based in the Villages.
6.5 CONNECTIVITY
Compo
nent
Description
Road The plant site approached by small road which connect NH-7 and Industry
Rail Dabilpur railway station is 2.8 Kms.
Air Nearest Airport located at Hyderabad which is about 70 km from the
proposed site. Sea
Port
The nearest sea port is Kakinada which is about 410 Km from the proposed
site.
6.6 DRINKING WATER MANAGEMENT
The workers at the plant during construction will be provided with water for their requirement
and for the construction activities. The construction labour will be provided with sufficient and
suitable toilet facilities to allow proper standards of hygiene. These facilities would preferably be
connected to a septic tank and shall be maintained properly to have least environmental impact.
Drinking water required for the workers will be met from ground water resources.
6.7 SEWERAGE SYSTEM
Domestic waste water generated will be treated in septic tank followed by soak pit.
6.8 INDUSTRIAL WASTE MANAGEMENT
No waste water will be generated from the process. Only waste water generated will be sanitary
waste water, which will be treated in septic tank followed by soak pit.
6.9 SOLID WASTE MANAGEMENT
The solid waste generation and disposal method from the proposed expansion project will be as
following.
S. NO TYPE OF SOLID
WASTE
EXISTING
QTY.
(IN TPD)
EXPANSION
QTY.
(IN TPD)
AFTER
EXPANSION
QTY.
(IN TPD)
DISPOSAL PROPOSED
1 Slag
(from SMS)
9 62.1 71.1
Slag will be crushed and after
iron recovery the inert
material will be used in road
construction/given to brick
manufacturers
2 Mill scales 8.2 26.7 34.9 Will be reused in SMS
29
(from Strip
Mill)
3 Scrap from
pipe mill 8.2 41.8 50
Will be used in SMS
6.10 POWER REQUIREMENT & SUPPLY / SOURCE
The power required for the proposed expansion will be taken from TSPDCL.
7.0 REHABILITATION AND RESETTLEMENT (R & R) PLAN
No rehabilitation or resettlement plan is proposed as there are no habitations in the proposed
expansion project site.
8.0 PROJECT SCHEDULE & COST ESTIMATES
The following is the breakup of the proposed expansion project cost.
Particulars Rs. in Crores
i. Induction Furnace with CCM 24.0
ii. Strip mill 14.0
iii. Pipe Mill 62.0
iv Scaffolding 5.0
v Continuous Coil Galvanizing 30.0
vi Hot Dip Galvanizing 15.0
Total Investment 150.0
Means of Finance Rs. in Crores
Particulars
i. Share Capital 49.5
ii. Term Loan 100.5
Total Investment 150.0
9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)
With the implementation of the proposed expansion project, the socio-economic status of the
local people will improve substantially. The land rates in the area will improve in the nearby areas
due to the proposed activity. This will help in upliftment of the social status of the people in the
area. Educational institutions will also come-up and will lead to improvement of educational
status of the people in the area. Primary health centre will also come-up and the medical
facilities will certainly improve due to the proposed project.
30
SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES
The management is committed to uplift the standards of living of the villagers by undertaking
following activities / responsibilities.
Health & hygiene
Drinking water
Education for poor
Village roads
Lighting
HEALTH & HYGINE
1. Personal and domestic hygiene,
2. Maintaining clean neighborhood,
3. Weekly health camps offering free-check up & medicines
4. Ambulance services
5. Education & drug de-addiction, aids.
DRINKING WATER
Making drinking water available at centralized locations in the village,
SUPPORTING EDUCATION
1. Providing books to all poor children,
2. Conducting annual sports festival in the village schools,
3. Providing amenities like fans, lavatories,
4. Maintain play ground etc.