AARESS IRON & STEEL LIMITEDenvironmentclearance.nic.in/writereaddata/Online/TOR/0_0...AARESS IRON &...

AARESS IRON & STEEL LIMITED

PFR OF 3.5 MTPA INTEGRATED STEEL PLANT INCLUDING 295MW CPP AT HALAVARTHI, KOPPAL, KS

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‘© 2015 Pollution & Ecology Control Services, Nagpur. All rights reserved’

01.00 Introduction 01.01 Preamble Steel being a basic commodity for all industrial activities, quantum of its

consumption is considered as an index of industrial prosperity. Since

independence, there has been a substantial growth in the steel sector in India

from 1.5 MTPA in 1950-51 to about 80 MTPA at present.

The per capita steel consumption continues to remain at a level of about 46 kg

only, compared to about 400-500 kg in the developed countries and about 40 –

100 kg in some of the developing countries. Further with nearly 20 % of the

world population, India’s consumption is only of the order of 4 % of the 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 productivity and

level of per capita steel consumption.

The strategies may include setting up of new steel plant facilities, or expansion

of the existing steel plants, or installation of upstream / downstream facilities in

already existing plants for production of semis for processing / finished products.

The National Steel Policy of India has declared a target of producing 110 millions

tonnes of steel by the year 2020, up from about 80 million tons at present. This

has given an incentive to all the major steel producers of India to work out to

add capacity.

AARESS Iron & Steel Limited (AISL) is proposing to establishing a green field



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fully integrated steel plant for capacity 3.5 Mtpa including a CPP of 295 MW.

M/s AISL is a leading manufacturer of flat, rounds and long products

including value added products with total steel value chain right from coal

mining, billets, HR coils, pig iron, CR coils, GP/GC, precision tubes, black

pipe/GI Pipe, cable tapes, tor steel, wire rod and special alloy steel from WHRB,

reject and middling from coal washery and conventional coal operated boilers.

AISL 3.5 Mtpa Greenfield steel and power plant in Halavarthi will have facilities for

long products as well as for HR Coil making facility in private sector in the state of

Karnataka.

This Pre-Feasibility Report is based on proven production technology, market

demand, site suitability with respect to environmental norms, available

infrastructure and economic viability of the project.



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02 MARKET ANALYSIS AND PRODUCT MIX

02.01 General

AISL proposes the green field integrated steel production capacity to produce 3.5 Mtpa

steel products along with 295 MW CPP from waste gases, waste material etc. In

order to arrive at a reasonable product-mix for the plant, a quick desk study

based on the secondary data has been carried out and derived in the following

paragraphs.

02.02 Global Steel Scenario

World steel industry has experienced spectacular growth during the recent years

after a period of downturn. The rise in demand is attributed to good economic

performance of the Asian economies and increasing replacement demand in the

developed countries, etc. All the major steel-producing countries and regions

showed double-digit growth in 2010. The EU and North America had higher

growth rates due to the lower base effect from 2009 while Asia and the CIS

recorded relatively lower growth.

However, China and India, and the Middle East showed positive growth in 2010.

World crude steel production during 2010 was reported as 1,414 Million tonnes

(Mt), 15.9% increase on the annual 2009 total of 1,219.7 Million tonnes. Annual

production for Asia was 897.9 Mt of crude steel in 2010, an increase of 11.6%

compared to 2009.

World trade in finished steel, expressed as a percentage of world steel

consumption is generally about 40 percent. Accordingly, it may be expected that



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total trade in finished steel will be of the order of 450 Million tonnes annually, of

which flat products may constitute upto 60 percent i.e. about 270 Million tonnes

and long products may constitute about 180 Million tonnes.

02.03 Indian Steel Scenario

02.03.01 Production

The crude steel production, including secondary steel, in the country was

reported as 1.4 Mt during 1951, which has increased to 15.8 Mt in 1990-91 and

further to 65 Mt by 2009-10 (Source: JPC).

The finished steel production in India has grown from a mere 1 Mt in 1951 to

13.2 Mt in 1990-91 and further increased to 59.69 Mt in 2009-10. During the first

two decades of the planned economic development, i.e. 1950 to 1960-61 and

1960-61 to 1970-71, the average annual growth rate of steel production has

been about 8%. However, this growth rate could not be maintained in the

following two decades. During 1970-71 to 1980-81, the average annual growth

rate in finished steel production came down to 5.2% and picked up marginally to

5.6% during 1980-81 to 1990-91. However, average annual growth during 1990-

91 to 2000-01 has been encouraging to the level of 8%. The production of

finished steel grew by 16.52 percent, from 44.54 Mt in 2005-06 to 49.39 Mt in

2006-07. The finished steel production for the 2008-09 registered a growth of

0.6% over 2007-08. It is estimated that by 2025, India would become the

second largest steel producer globally with an annual production of 300 Mt.



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02.03.02 Demand

Domestic Demand

Generally, a developing economy undertakes large number of infrastructure

projects, which are necessary for building of the nation and ensuring economic

growth. China is a leading example of the economic growth through

phenomenal development of infrastructure.

Strong economic growth rate 8.7% p.a. and present low per capita consumption

in India is expected to drive demand for steel, which is likely to grow @ 7.5%

per annum as per Ministry of Steel, Government of India projections, as detailed

in the National Steel Policy 2005. As per Government estimates, the demand is

likely to cross 100 MTPA by 2019-2020.

However, it is considered widely that the above projections are on a conservative

side and the demand is likely to grow at CAGR of about 10% per annum. As per

the estimates of Confederation of Indian Industries (CII), the steel demand in

India is likely to grow to 80-85 MTPA by 2015 itself, thereby registering a growth

rate of about 12.00% per annum.

Export demand

Though India started steel production in 1911, steel exports from India began

only in 1964. Exports in the first five years were mainly due to recession in the

domestic Iron and Steel market. Once domestic demand revived, exports

declined. India again started exporting steel only in 1975 touching a figure of 1



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Mt of pig iron and 1.4 Mt of steel in 1976-77. Thereafter, exports again declined

to pick up only in 1991-92 to 0.39 Mt. In 1995-96, exports of semi-finished and

finished steel products were 1.77 Mt while in 2003-04 exports reached 5.2 Mt.

During 2004-05, exports of these products have declined to 4.4 Mt. The exports

have increased by 8.9 per cent in 2006-07 over 2005-06 to touch 4.9 Mt. Exports

have declined in the year 2007-08 by 6.1 per cent to 4.6 Mt – from 8.9 per cent

in 2006-07.

Imports of semi-finished and finished steel products mainly HR plates, HR

coils/sheets and CR coils/sheets by India have been in the range of 1.1 Mt and 2

Mt, during the last ten years.

In view of the above and anticipated higher emphasis on export of steel products

in future as per National Steel Policy-2005 (26 Mt exports of steel products by

2020), export demand in the range of 10% to 15% of apparent consumption of

various products and 150% for GP/GC sheets has been considered.

The country now has a vision to achieve annual steel production, consumption

and export of 110 Mt, 90 Mt and 26 Mt respectively by the year 2019-20.

To cater to the recent and anticipated surge in domestic demand, export and

enhancement in the economy of scale, various existing steel producers and new

entrepreneurs have drawn expansion plans/Greenfield steel projects/acquisitions

& mergers.



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02.03.03 Resultant GAPS/Surpluses

Based on the demand and availability, future gaps and surpluses have been

projected in Table-02.01:

Table-02.01

Demand, Availability and Resultant Gaps/Surpluses

Sl.No. Products In (‘000 t)

2006-07 2011-12 2016-17

Steel Products

I Non Flat Products

1 Wire Rods

Demand 6040 8840 12970

Availability 4940 4940 4940

- Gaps/Surpluses* - 1100 - 3900 - 8030

2 Light Merchant Products

Demand 9790 14060 20220


- Gaps/Surpluses* (+) 360 (-) 2160 (-) 8320

3 Medium Merchant Products

Demand 2440 3465 4910


- Gaps/Surpluses* (-) 325 (-) 1350 (-) 2795



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4 Heavy Sections

Demand 560 750 1000


- Gaps/Surpluses* (+) 160 (+) 70 (-) 180

II Flat Products

5 HR Plates

Demand 3680 5175 6900


- Gaps/Surpluses* (-) 2330 (-) 2475 (-) 4200

6 HR Coils /Sheets

Demand 14400 23160 42525


- Gaps/Surpluses* (-) 2360 (-) 6980 (-) 26345

*Note: Demand and Gaps/Surpluses are including ‘Export’.

From the above, the following conclusions can be drawn:

• There is enough scope for creation of additional steelmaking capacity

in the country to meet the growing domestic demand.

• There is enough opportunity for Indian Steel Producers to enter the

growing world trade in steel.



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02.04 Keeping in view the steel market trends, it is proposed to establish an integrated

steel plant to 3.5 MTPA including 295 MW CPP at Halavarthi, Koppal in

Karnataka.

02.05 The tentative product ranges would be:

Considering the overall demand in the country, export markets for HR

coils/sheets, TMT bars and light structural, seamless tube the following product-

mix is suggested for production at proposed integrated steel plant. A product-mix

envisaged for the proposed plant is furnished below:

SI. No Items Annual

Production (tonnes)

1 Alloy steel Long products 850,000 2 Hot rolled Coils (Flat Products)

/cold rolled products 2,340,000

Total 3,190,000

3 By-Products Products Like Crude tar, Ammonium sulphate and Sulphur Cake

4 CPP 295 MW



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03.00 PLANT FACILITIES

03.01 General

The integrated steel plant at Halavarthi, Koppal shall have the capacity to

produce 3.5 Mtpa crude steel manufacturing..

The plant shall be equipped with iron ore beneficiation plant, pellet plant,

coal washery, coke oven complex, sinter plant, blast furnace, SMS, ladle

furnace, vacuum degasser, continuous casting facility, HSM, Rod and bar

mill, Hot dip galvanizing plant, lime & dolo plant for the production of hot

rolled coil and Captive Power Plant. The General Layout is shown in the

Drawing and enclosed at Annexure-3. In this chapter, all major

technological facilities required at each processing step of the plant are

given (Table - 03.01) below with brief description in subsequent

paragraphs.

Table – 03.01

Details of Proposed Integrated Steel Plant

Sl. No.

Plant Units Phase-I Phase-II Final Plant

Configuration

1 Coal Washery 1x3.0 MTPA - 1x3.0 MTPA

2 Ore Beneficiation Plant

(1x1200) TPH - 1.2 MTPA

3 Pellet Plant with coal gasifier unit

1x1.2 MTPA - 1x1.2 MTPA

4 Sinter Plant 1x144 m2

1.29 MTPA 1x324 m2 3.8 MTPA

(1x144)+(1x324) m2 5.09 MTPA gross sinter



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5 Coke Oven 1x0.68 MTPA 2x55 Ovens 5.5 m tall Recovery Type

1x1.5 MTPA 2x65 Ovens 7.0 m tall recovery type

2.1 MTPA gross coke Coke Oven battery 2x55 ovens 5.5 m tall 2x65 ovens 7.0 m tall Recovery type

6 Blast Furnace 1x1681m3 BF 1.2 MTPA

1x3814 m3 BF 2.6 MTPA

1x1681m3 +1x3814 m3 BF 3.8 MTPA hot metal

BF slag 343,000

788,000

1,131,000 tpa

7

SMS

a)

EOF (Energy Optimising Furnace)/BOF (Basic Oxygen Furnace)

2x65 t EOF 2x180 t BOF furnaces

(2x65)t EOF+ 2x180 t BOF

b) LF (Ladle Furnace)

2x65 t 1x180 t 2x65 t +1x180 t

c) VD / RH Degasser

2x65 t VD 1x180 t RH Degasser

2x65 t VD +1x180 t RH Degasser

f)

Billet Caster/ Bloom Caster

2x3 Billet Caster +1x2 Bloom caster

2x1 strands slab caster

2x3 Billet Caster +1x2 Bloom caster

h) Slab Caster - (2x1) Strand (2x1) Strand

8 Bar & Rod Mill 0.65 MTPA 0.65 MTPA

9 Hot Strip Mill - 2.5 MTPA 2.5 MTPA

10 Cold Rolling Mill with continuous Pickling line

- 1.00 MTPA 1.00 MTPA

11 Hot Dip Galvanizing /Galvolume Unit

- 0.5 MTPA 0.50 MTPA

12 Colour Coating - 0.25 MTPA 0.25 MTPA



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Unit 13 Oxygen Plant (1x300)+(2x300)

TPD 2x500 tpd (3x300)+(2x500)

TPD

14 Lime Plant (2x300)TPD 1 x 600 TPD units (2x300)+(1x600) TPD

15 Dolo Plant 1x300 TPD - 1x300) TPD

16 Captive Power Plant

1x70 MW CFBC Based boiler + 6 MW TRT

2x100 MW conventional CPP based on washed

coal + 12 MW TRT+ 7 MW WHRB

based

295 MW CPP from WHRB, coal reject and middling and conventional TPP

17 Material handling Plant for both phase

Matching Matching Matching

3.2 Coal Washery

M/s AISL shall setup coal washery to produce clean coal for coal-based

CPP plant and middling’s and reject shall be used in CFBC based

captive power plant. The sized raw coal (20+5 mm) will be made

available to the silo of washery from the crushing plant. From silo,

material will be fed to the washery through conveyor. The coal washery

plant is consisting of heavy media cyclone, dewatering and rinsing screen,

centrifuge, magnetic separator, disc filter, thickener, etc. and related sump

and pump. The coal washery shall have name plate capacity of 3.0 MTPA.

3.3 Beneficiation Plant

In order to produce about 1.2 Mtpa pellet grade iron ore

concentrate, it is proposed to set up 1 No of 2000 tph throughput

iron ore beneficiation plant to beneficiate low-grade iron ore fines (-10



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mm) from Mines. These low grade iron ore fines, after beneficiation,

will become suitable for production of pellets. In absence of any test

report made available by M/s AISL, it is assumed that iron ore will be

ground to a size of (-) 150 micron by grinding mill. This ground

product will be beneficiated to upgrade it to (+) 64 % Fe (min.).

Pellet Plant

M/s AISL shall implement one (1) pellet plant of capacity 1.2 Mtpa for the

proposed 3.5 Mtpa integrated steel plant. The pellet plant will operate on

beneficiated iron ore concentrate in the form of filter cake. The filter cake

will be received from beneficiation plant.

One straight grate/Grate Kiln indurating machine of 165 m2 grate area

complete with service facilities will be installed in the pellet plant

complex. Pellets will be utilized in blast furnaces to cater the 20% of the

metallic burden.

Design criteria

Capacity of pellet plant : 1.2 Mt

No. of annual working days : 330

Indurating machine area : 165 m2

3.4 Coke Oven Batteries

Coke is one of the prime requirements for production of hot metal through

blast furnace route. Considering the level of technological development in

the coke making area and total requirement of blast furnace coke in the

blast furnace, installation of recovery type coke oven batteries have been



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envisaged. The gross coke generated in the coke ovens will be screened.

BF coke & nut coke will be sent to the blast furnace and coke fines/ coke

breeze generated in the plant will be utilized in the sinter plant. The coke

making technology would include pre-carbonization and post carbonization

technologies like selective crushing of coal, top charging and high capacity

ovens. Introduction of these technologies are required to reduce the hard

coking coal requirement by blending with soft coking coal in coal blend to

improve coke quality, to facilitate automation and pollution control and to

maximize the use of soft coking coal. Coke will be dry quenched in CDCP

plant. The coke oven gas after cleaning and mixing shall be used for

downstream facilities such as HSM, Bar & Rod mill, sinter plant and other

required facilities.

03.03 Sinter Plant

Sintering is an agglomeration process in which iron ore fines are mixed

with return materials, limestone, and finely sized fuel such as coke breeze.

The return materials consist of mill scale from hot rolling operations and

dust from steel melting shop and blast furnaces. The raw materials are

mixed before they are placed on the traveling grate of the sinter machine.

Near the head end of the grate, the surface of the raw materials is ignited

by a gas fired ignition furnace located over the bed. As the mixture moves

along the grate, air is drawn through the mixture at the wind boxes to

enhance combustion and sinter (fuse) the fine particles. As the bed burns,

carbon dioxide, sulfur compounds, chlorides, fluorides and oil and grease

are driven off with the gases.

The sinter drops off the grate at the discharge end and is cooled (either

by air or a water spray), crushed, and screened to maintain uniformity in



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the size of the sinter fed to blast furnaces. Improperly sized sinter and

fines from screening are returned for reprocessing.

The advantages of agglomerated burden in the blast furnace are well

established and almost all the high capacity blast furnaces world-wide are

using agglomerated burden for most efficient furnace operation. The

major advantages for use of sinter in blast furnace are as follows:

• Control of physical, chemical and high temperature properties of

burden materials.

• Avoid use of raw flux charging directly in the blast furnace.

• Increase in productivity of the furnace.

• Decrease in coke/fuel rate.

• Longer life of furnace.

• Production of desired grade of hot metal, etc.

Apart from the above advantages, the iron ore fines generated in the

mines during production of iron ore lumps are used in the sinter plant

which avoids the problems related to disposal of fines in the iron ore

mines. Moreover, metallurgical waste materials generated in different

process steps shall be recycled in the sinter plant, which minimizes the

dust pollution inside the plant boundary. The sinter plant is equipped with

the following major facilities:

� Base blending for input materials.

� Flux and fuel crushing facilities.

� Lime dozing facility.

� Mixing and nodulising unit.



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� Sintering machine equipped with sinter strand, ignition furnace, wind

boxes, suction fan, dust cleaning unit, etc.

� Sinter Coolers.

� Sinter screening and transportation facilities.

Capacity of the sinter plant has been estimated based on use of about 70-

65% sinter in the burden of blast furnaces, which shall be obtained from

the sintering machine.

03.04 Blast Furnace

AISL shall have two blast furnaces in operation. A number of

technological improvements have taken place in blast furnace which has

resulted in higher production, less coke consumption, most energy

efficient, long campaign life, etc. State-of-the-art blast furnace equipped

with the following major facilities has been envisaged for the proposed

integrated steel plant.

� Stock house with automatic conveyor charging facilities.

� Bell less top charging equipment.

� High top pressure operation (2.5 kg/cm2 top pressure) and matching

gas-cleaning plant.

� Stoves for generation of high hot blast temperature (1250oC blast

temperature).

� Coal dust injection facilities

� Oxygen enrichment of blast.

� Cast house slag granulation plant.

� Level-III automation and control system, etc.



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Hot metal produced from the blast furnace will be transported to the steel

melting shop using hot metal ladles.

Slag generated from the blast furnaces will be granulated in the cast

house slag granulation plant. The granulated slag will be utilized for

cement manufacturing. The pressure energy of exhaust fuel shall be used

for generating power through TRT machine.

03.05 BOF Steel making

The primary steel making technology is pre-dominantly shared by basic

oxygen Steel melting process & Electric Arc Furnace. The BOF steel

making technology till today is the most dominant steel making process in

the world & constitutes around 63.3 % of the total world steel production.

In the context of AISL, which is based on BF-BOF route, the new shop will

also be based on the BOF process of steel making. Certain technological

advancements have taken place in the area of BOF steelmaking all over

the world related to its equipment & system, automation & control and

pollution control measures.

All the above advanced features and pollution control measures according

to the latest trend in the world will be incorporated in the new shop and

technically feasible schemes for SMS.



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ii) Hot metal Desulphurisation

Production of quality steel demands superior quality of input materials for

steelmaking. Moreover, refining time for steelmaking can be substantially

reduced, if cleaner input materials are supplied to the converters.

Reduction of ‘S’ from hot metal in blast furnaces is not preferred as the

same requires high basicity BF slag operation which is not recommended

in the country due to extensive Al2O3 load from iron ore from indigenous

sources . Removal of ‘S’ from steel requires extensive slag-metal reaction

in reducing bath with high-basicity slag which is time consuming.

Consequently, substantial removal of ‘S’ during steelmaking in primary

vessel is not practicable. Again, desulphurisation of liquid steel in

secondary refining vessel is not recommended and, if unavoidable, should

be minimum. Therefore, external desulphurisation of hot metal before

steelmaking has been envisaged for the proposal.

M/s AISL proposes to establish SMS-I & II for processing of hot metal

converting into quality steel for various uses. The steelmaking facilities

have been planned in two steel melting shops, i.e., SMS-I and SMS-II.

SMS-I has been planned for long products and SMS-II has been

planned for flat products. SMS-I shall be equipped with EOF of 2x65 t

capacity while that of SMS-II shall have 2x180 t BOF with matching hot

metal de-sulpharisation before converting to steel.

It is proposed to install Steel Making and Continuous Casting Shop (SMS)

of about 3.82 Mtpa capacity. The major facilities to be installed for SMS-II



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will include hot metal desulphurisation station, basic oxygen furnaces,

secondary refining units and continuous casting facilities

The new SMS-II will incorporate the state of the art technology for BOF

and slab caster. The main technological units of SMS-II are as follows.

• 1 x180 t Desulphurisation station

• 2 x 180 t Basic Oxygen Furnace

• 1x 180 t Ladle Furnace

• 1 x 180 t RH-OB Unit

• 2 x 1 strand Conventional Slab Caster

iii) Secondary refining of steel

The most popular version of secondary metallurgical processes, which are

in operation in the world either at normal pressure or under vacuum is as

given in Table below:

Major Secondary Refining Processes

Sl.No. Process Performance

A Under atmospheric

pressure in ladle

1. Ladle furnace Widely used as a buffer vessel

between BOF and caster shop and

for controlling the super heat

temperature of steel for casting. LF



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unit also facilitates desulphurisation,

deoxidation and inclusion floatation &

shape control, alloying.

B. Under vacuum in ladle

1. VD / VOD - H level <1.5 ppm can be

achieved in 10 min

- N level to around 30 ppm can be

achieved from low initial level & S

content

- C level in VOD can be reduced to

<20 ppm

- S level around 10 ppm can be

achieved if initial S before

secondary treatment is 100 ppm

and vacuum level around 0.45 torr

and top slag less than 1% FeO &

MnO.

2. RH degasser - H level <1.5 ppm can be

achieved.

- Ultra low N level of 20 ppm can

be achieved due to high circulation

rate, gas exhausting and strong

perturbation

- Ultra low C steel upto 10 ppm

can be achieved.



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- By injection of lime and flourspar

mixture (RH-PB process), S upto 10

ppm can be achieved.

- O content level of 20-30 ppm

from 300 ppm can be achieved in

30 min treatment time.

Out of all the above ladle metallurgical treatment processes, ladle furnace

and RH-degassing unit is the most commonly used facilities. The RH-

degassing, due to its inherent process features, has proved comparatively

faster treatment and this is able to provide higher output as compared to

other vacuum treatment process. The recent version of RH unit is

provided with oxygen blowing facility and also powder injection. This

facility enables the process to produce extra low carbon steel together

with lowest level of gaseous inclusions (O, H, N) as well as lowest sulphur.

O up to the level of about 20-30 ppm, N 20 ppm, C about 10 ppm and H

less than 1.5 ppm has been reported to be achieved through this process,

depending upon their initial levels.

In view of the above, RH-OB installation has been provided along with

LHF in SMS-II. SMS-I shall also have LHF installation. Ladle furnaces will

be installed for treatment / holding of liquid steel tapped from converters.



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RH-OB vacuum degassing units along with its accessories will be installed

in the ladle handling bay of continuous casting plant for vacuum

treatment of liquid steel for production of special steels.

The Continuous Casting Shop will be designed to cast the entire quantity

of liquid steel produced in the Basic Oxygen Furnace Shop through 2x1,

strand slab caster. The slabs from conventional slab caster will be fed to

the existing Hot Strip Mill for further processing.

03.08 Billet/Bloom/Slab Caster

In phase – I AISL shall only go for alloy steel long products and in view of above it will put billet and bloom caster to cast the entire steel in phase _I. while in second phase AISL have flat products and matching slab caster is envisaged to cast entire liquid steel.

03.09 Bar & Rod Mill

The proposed bar and rod mill will produce roll 650,000 tpa bars and rods.

Input size for the mill will be 150 mm concast billets. The mill will be

working for about 300 days per year and 3-shifts per day. It is expected

that after providing for various mill delays such as mechanical and

electrical delays, roll and guide change, mill setting and other normal

operational delays, at least 5500 net hot rolling hours would be available

for each mill for rolling the required annual tonnage. However,

achievement of the above hot rolling hours, consistently, will require

trained manpower and high degree of technical and operational discipline.



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3.10 Hot Strip Mill (HSM) with Reheating furnace

The proposed slab caster linked hot strip mill with reheating furnace is

designed to produce 2,500,000 t/yr HR Coils. The rolling mill equipment

will primarily comprise a reheating furnace, one pendulum type slab

and cobble shear, one high pressure descaling station, six 4-high

finishing stands with provision for a seventh stand in future, run out

roller table equipped with laminar type strip cooling system, two down

coilers, coil conveying and inspection facilities, coil storage yard,

auxiliary facilities and roll shop equipment.

CRM Complex:

Under the current proposal, about 2.5 Mtpa of HR coils will be produced.

It is, therefore, imperative to convert good part of this to cold rolled

products for substantial value addition. Accordingly, a CRM complex has

been envisaged.

Broadly, cold rolled mild steel sheets cater to construction market,

appliances market and automotive market. Extent of value addition

increases in the same order, i.e., product for automotive market fetch

maximum sales realization. Among the cold rolled products for

construction market, extent of value addition increases in the following

order.

- Galvanised

- Colour coated galvanized



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With regard to the appliance market, the options available are plain cold

rolled sheets, colour coated cold rolled sheets, colour coated galvanized

sheets (extent of the value addition increasing in the same order). Among

the various automotive sheet products, autobody sheets for exterior

applications fetch maximum sales realization.

In view of the foregoing, emphasis has been led on production of CR

products in the automotive market which is associated with maximum

value-addition. The new cold rolling mill complex is planned to process

about 1.0 Mtpa of cold rolled products. For such a high capacity cold

rolling mill complex, it is necessary to plan a coupled pickling and tandem

cold mill. However, product-mix for such a mill can be in the sheet gauge,

including thin sheet gauge range (0.25 mm – 1.5 mm), in order that the

high capacity of more than a million tonne is maintained. It is also

planned to have a provision of colour coating line.

In view of the above deliberations, a coupled pickling and tandem cold

mill has been envisaged. The pickling will be of HCl type. Pickling section

will have shallow tanks with turbulence and efficient hydrochloric acid

regeneration facilities. The cold rolling section will have 5-stands with at

least few stands of 6-high type and the remaining stands of 4-high CVC

type. The next processing steps in cold rolling mill complex for production

of autobody sheets is continuous annealing and hot dip galvannealing line.

In the galvannealing line, as-cold rolled interstitial-free (IF) steel is

annealed, galvanized, galvannealed and finished to produce regular

autobody sheets, including bake-hardenable grades. Since the annealing

cycle in galvanizing line is restricted by galvanizing regime, such a line can



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produce high strength autobody sheets like dual phase steel and TRIP

steel in restricted strength levels.

However, the present domestic demand scenario shows requirement to

some extent of hot dip galvanized / galvannealed sheets for autobodies

and to a very limited extent of electro-galvanised sheets. Also, the CAL-

electro galvanizing route attracts substantially higher capital investment.

Therefore, the hot dip galvanizing / galvannealing line of capacity 250,000

t/yr and an associated galvanising sheet shearing line of capacity 200,000

t/yr have been considered for production of autobody strips in the

proposed CRM complex.

3.11 Power Plant

The power requirement for the proposed capacity project shall be made

available from the newly envisaged CPP of 295 MW and Main Receiving

Substation (MRS) of 220kV/132kV switchyard and Captive Power plant

(CPP).

The inplant generation of about 295MW (max.) is obtained from CPP units.

One no. of 70MW unit has been envisaged in CPP from washery reject and

middling while 200 MW from conventional coal based CPP.. 2Nos. of 6 and

12 MW BF Top gas Recovery Turbine (TRT) have also been envisaged.



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03.11 Lime and Calcined Dolomite Plant

Lime Plant/ Dolo Plant

The production requirement of lime and calcined dolomite for steel making

is given below:

Lime of size 10-50 mm : 337,340 tpa

Calcined dolomite of : 68100 tpa

size 10 – 50 mm

This requirement of lime and calcined dolomite will be met from the

vertical kilns proposed for plant requirement.

3.12 Oxygen Plant

Installation of 1900 tpd ASUs including additional gaseous storage vessels

(for Oxygen, Nitrogen and Argon) has been envisaged. The plant will be

operated on BOO basis. The above capacity will be sufficient to meet the

requirement of plant after completion of both phases.

3.13 Water Supply System



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Water system for the proposed project, comprising Blast Furnaces,

CHSGPs, BOFs, LFs, ARU, RH Degasser, conventional Slab Caster, slab

casters, Furnaces and Hot strip mill, CRM, Oxygen Plant & Central

Compressed Air Station has been planned on local water re-circulation

concept with provision of make-up water from reservoir, after necessary

treatment and softening as well as demineralisation, as required.

Closed-circuit soft water and DM water recirculation systems with water-to-

water plate heat exchangers have been planned for indirect cooling circuits

to affect extensive recycling of return water from critical cooling processes.

Open-circuit industrial water recirculation systems with evaporative cooling

towers have been planned for the secondary side of plate heat exchangers

as well as for direct cooling circuits.

High pressure recirculating water will be used for intensive cooling of hot

rolled products to impart thermo-mechanical treatment. Return water will

get contaminated with fine scales and will require both cooling and settling

of scales before reuse.

Source of Water for Proposed Facilities

The requirement of make-up water for the proposed capacity of AISL Steel

Plant will be of the order of 3950 m3/h. In order to conserve water, it is

envisaged to re-use the treated sewage and industrial effluents from the

following sources as make-up water to various water recirculation systems

of the plant after proper treatment. Blow-down water from various cooling

towers (Quantity approx 400 m3/h)



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4 Compressed Air Facilities

The compressed air requirement will increase mainly in the following

areas:

a) Coal Handling Plant area

b) Coke Sorting Plant area

c) Blast Furnace Stock house area

d) Sinter Plant area

e) SMS – I

f) SMS – II

g) Hot strip mill area

h) CRM complex area

5 Steam Facility

The requirement of low pressure steam is about 45 t/h especially in the

areas of CRM, HSM and SMS. The requirement of medium pressure steam

shall be about 20 t/hr for RH – Degasser of SMS II.

6 Top Gas Recovery Turbine & Turbo-blower Station

Top Gas Recovery Turbine



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It is envisaged to install Top Recovery Turbo-generators (TRTs), one with

each blast furnaces. The TRT is the equipment to take the BFG out of

the BF Gas cleaning equipment and recover the pressure energy of the

BFG as electrical power by controlling the blast furnace top pressure.

7 Gas Facilities

The gaseous fuel supply facilities for the plant cover all generations and

consumptions of following major gases/fuels:

• Coke-oven Gas

• BF Gas

• BOF Gas

• LPG / propane

The other major gases required for various applications in the plant are:

• Oxygen

• Nitrogen

• Argon

• Hydrogen

3.14 Environmental Management

Air Pollution Control



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To control outflow of fugitive dust from generating sources, dust

extraction systems, dust suppression systems and fume extraction

systems have been envisaged for the various plant premises.

The work zone dust concentration in some of the areas shall be higher

than the threshold limit value (TLV) due to many limitations and the

present state of existing technology systems. Suitable schemes shall be

implemented to overcome the same.

II. Effluent Treatment Plant

The major generation of effluent from the units will be from the CRM

Complex. Effluents from the proposed CRM complex are anticipated to be

generated from different sources. The waste water generated will be

mainly from :

1. Oil contaminated waste water

2. Chemical contaminated waste water

All the above effluents will be discharged separately through three

independent discharge lines. Some of the effluents will be discharged in

batches while other effluents will be discharged continuously. The

effluents are either acidic or alkaline, contaminated with oil, chromium

and phosphate. As per the statutory norms, the effluents discharged from

any plant are expected to meet the following norms:

a. pH 5.5 to 9



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b. Oil 10 mg/l (max.)

c. Chromium(Hexavalent) 0.2 mg/l (max.)

d. Total chromium 2 mg/l (max.)

e. Dissolved phosphate 5 mg/l (max.)

f. suspended solid 100 mg/l (max.)

Since the above effluents will be contaminated with more than the above

permissible concentration, an effluent treatment plant shall be

implemented for the CRM Plant for removal of the pollutants in order to

meet the above statutory norms.

Table-03.02

Major Plant Facilities and Their Capacities

Sl. No. Plant Units Final Plant Configuration

1 Coal Washery 1x3.0 MTPA

2 Ore Beneficiation Plant 1x2000TPH

3 Pellet Plant with coal gasifier unit

1x1.2 MTPA

4 Sinter Plant (1x144)+(1x324) m2

5 Coke Oven (1x0.65) Mtpa recovery type

(1X1.5) Mtpa (Recovery Type)

6 Blast Furnace (1x1681)+(1x3814) m3

7 SMS a) EOF/BOF Furnace) (2x65) + (2x180 t)T

b) LF (Ladle Furnace) (2x65)+ 1x180T

c) VD/RH Degasser (2x65)T + !X180 t

f) Billet Caster 2x3 Strand

g) Bloom Caster (1x2) strand

h) Slab Caster (2x1) Strand

8 Hot Strip Mill 2.5 MTPA



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9 Bar & Rod Mill 0.650 MTPA

10 Cold Roll Mill with continuous pickling line

1.00 MTPA

11 Galvanising/Galvolume Unit

0.50 MTPA

12 Colour Coating Unit 0.25 MTPA

13 Oxygen Plant (3x300)+(2x500) TPD

14 Lime Plant (2x300)+(1x600) TPD

15 Dolo Plant (1x300) TPD

16 Captive Power Plant 295 MW CPP based on middling /reject coal based CFBC, WHRB and conventional coal based

17 Slag Cement Plant 1.0 MTPA in future



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04 RAW MATERIALS REQUIREMENTS 04.01 General

Raw materials availability is becoming critical due to the heavy demands

made and the limited resources. Proper sourcing and appropriate

beneficiation combined with logistics planning has become vital for the

success of any steel plant operation. It is imperative that the raw

materials should meet the specific quality requirements demanded by the

process as well as equipment. The other important criterion, concerned

to raw materials, is the cost of transportation involved from mine site to

plant site. Iron ore lumps, Iron ore fines, pellets, non-coking coal, coking

coal, limestone, dolomite and quartzite are the major raw materials

required for the integrated steel plant.

04.02 Requirement of Raw Materials

The annual requirements of various raw materials for 3.5 MTPA is given in

table 04.01.

Table-04.01

Annual Major Raw Material Requirement

Sl. No.

Raw Material Size (mm)

Gross Qty (tpa)

Source Transport Mode

1 Iron ore lump (BF grade)

8-30 615,600 Purchase through E-Auction

Rail/Road

2 Iron ore fines (Beneficiation plant))

5-20 1,900,000 -do- Rail/Road

3 Iron ore fines (Sinter grade)

4,231,000 -do- Rail/Road

4 Coking coal - 3,263,000 Import from Ship/Rail



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Sl. No.

Raw Material Size (mm)

Gross Qty (tpa)

Source Transport Mode

Australia/Indonesia

5 Limestone 0-80 613,000 Satna/Maihyar/import

Rail/Road

6 Dolomite 0-80 149,000 Baradwar Rail/Road

7 Quartzite 10-50 51,000 Local Road

8 Non-coking coal washery

0-20 4,300,000 Through E-Auction

Rail/Road

9 Non-coking coal for injection (BF)

<100 577,800 E-Auction Rail/Road

Estimated requirement of all raw materials have been briefly described in

subsequent paragraphs.

04.02.01 Iron ore

The estimated requirement of total Iron ore fines is 4.23 Mtpa on net and

dry basis. The requirement of iron ore lump is 0.6156 Mtpa on net and dry

basis.

04.02.02 Coal

Generally, for coke making, metallurgical coal of different grades is used

in blend. Availability of low ash coking coal of desired quality in this

country is limited. Hence, it has been envisaged that requirement of

metallurgical coal for the proposed steel plant will be met through

imports. The possible sources of supply of metallurgical coal are Australia

while South Africa and Indonesia are the possible sources of coal used for

PCI coal for BF.



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04.02.03 Coking coal

The requirement of coking coal is about 3,263,000 TPA on Net and Dry

basis. 100% Imported Coking Coal is proposed to be used in the coke

oven complex.

04.02.04 Coal for PCI

The PCI Coal requirement for the blast furnace is about 615,600 TPA for

pulverized coal injection through the tuyeres. The ash content of the

injected coal is normally lower than that of the coke for the most efficient

coal dust injection operation. Since very low ash content non-coking coal

is available in India, it will be met through locally.

04.02.05 Limestone

Limestone will be required as flux material both for iron making and for

steel making. In case of steel making, limestone will be calcined in a

captive calcination plant and the calcined product, namely burnt lime, will

be used in steel melt shop for production of liquid steel.

The desirable chemical analysis of BF grade limestone is as follows:

SiO2 Al2O

3

CaO MgO

% % % %

3.61 0.60 50.74 1.91



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For quality reasons, sustained supply and cost effectiveness, SMS grade

limestone may also be used. High-grade low silica limestone is produced

and traded. The typical analysis of limestone is as follows:

SiO2 Al2O3 CaO MgO

% % % %

0.43 0.20 54.54 0.91

04.02.06 Quartzite

It has been proposed to use quartzite in the blast furnace. It has been

proposed to procure quartzite from local region.

A typical analysis of quartzite from this area is as follows:

SiO2 Al2O3

% %

96.5 0.60



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05 PLANT LOCATION 05.01 Location

The proposed integrated steel plant of AISL, shall be located at Village

halavarthi, P.O. Halavarthi, Tahasil Koppal, District Koppal in Karanataka.

The units proposed in the integrated steel plant are located within the

existing land boundary under the control of company.

05.2 Area Requirement

The integrated plant units shall be accommodated within existing land of

922.2 acres of under company control.

05.03 Logistics

The raw material sources are already connected by rail and road which

will require to be further upgraded matching requirement.

05.03.01 Road

National highway NH-63 is passes adjacent to plant boundary Which

could be use as road logistics

05.03.02 Railways

Plant is well connected on Hubli – Bellary section near Ginigera railway station which is about 3.5 km ENE of the plant

05.03.03 Port Connectivity

Goa Port is about 250 km away from site.



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05.3.4 Air Connectivity

The plant shall be well connected to major town of country through Bengaluru Air Port facilities.

05.04 Water Iron and steel making are heat intensive processes wherein a considerable quantity of water is required for cooling in metallurgical process as well as for dissipation of unutilised heat. In order to conserve fresh water, water economy has been an underlying criterion for integrated steel plant units and equipment. Closed-circuit soft water re-circulation systems with water-to-water plate heat exchangers have been planned for indirect cooling circuits to affect extensive recycling of return water from critical cooling processes. Open-circuit industrial water re-circulation systems with evaporative cooling towers have been planned for the secondary side of plate heat exchangers as well as for direct cooling circuits. Process water losses will be compensated by adding make-up water of respective qualities. Source of water The source of water for the integrated steel plant is the back water of Tungbhadra reservoir, flowing at a distance of about 9 km from plant site. The additional requirement of water will be met from the recirculation of waste water. Provision shall be kept in the reservoirs for catering to the raw water needs of the steel plant for 15(fifteen) days. Water balance diagram for the plant is indicated below:



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05.05 Power The power requirement for the proposed plant shall be met from captive production of 295 MW from WHRB, CFBC based stream and conventional power plant.



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06.00 PROJECT IMPLEMENTATION



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06.01 General

Implementation of proposed Integrated Steel Plant is a challenging task and

calls for meticulous planning, scheduling and monitoring to realize the

project goals in budgeted time frame. The goals can be achieved by

adopting modern project management techniques. AISL shall deploy highly

experienced team for the purpose through specifically defined responsibilities

will execute the project.

06.02 Schedule

The overall schedule shows that from the date of start of the project (Zero

date), the complete plant units of phase-I will be done in 36 months while

that for whole plant shall take about 60 months from financial closure. The

schedule as presented is based upon conventional project implementation

logics for Steel Plant, preliminary vendor information available and in-house

experience. The schedule of 60 months has been conceived, considering the

existing practices and delivery schedule of similar plants & equipment at

other location.

06.03 Zero Date

The date of financial closure shall be assumed as “zero date” for installation

of the proposed integrated steel plant. This will be reckoned with

environmental clearance from MOE&F.



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07 BLOCK CAPITAL COST

The estimated capital cost for proposed integrated steel plant units to

achieve production of 3.5 Mtpa integrated steel plant including 295 MW CPP

at Halavarthi in Koppal District of Karnataka has been worked out to be

Rs. 18,000 Crs.

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