Post on 24-Mar-2018
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.