Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd PRE ... · Pre-Feasibility Report of M/s ILC...

Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd

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PRE-FEASIBILITY REPORT OF M/s ILC IRON & STEEL PVT.LTD

1. Introduction of the project

M/s ILC Iron &Steel Pvt.Ltd is incorporated by a team of directors namely Sri K. Somasekhar and Sri

K. Chandrasekhar. At present industry is operating in 48Acres 36 Guntas comprising Sy.No.15, 16, 17

& 29 out of 95 Acres. As promoters felt the need to increase the production capacity, they have

acquired 7Acres34Guntas comprising SY.No.17, 36, 37, 38 and 51. Now, total area of the industry

increased to 102 Acres34Guntas. Earlier the company has taken EC from MoEF & CC, New Delhi and

Consent to operate from Karnataka State Pollution Control Board. The unit is located between

Kunikera Tanda and Kunikera Village, Kopppal Dist, Karnataka State.

2. Need of the project

As per the IBEF, India was the world’s third-largest steel producer in 2017. The growth in the Indian

steel sector has been driven by domestic availability of raw materials such as iron ore and cost-

effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing

output.The Indian steel industry is very modern with state-of-the-art steel mills with sustained

technological developments. It has always strived for continuous modernization and up-gradation of

older plants and higher energy efficiency levels.India’s crude steel and finished steel production

increased to 102.34 MT and 104.98 MT in 2017-18, respectively. In 2017-18, the country’s finished

steel exports increased 17 per cent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT

in 2016-17. Exports and imports of finished steel stood at 0.99 MT and 1.22 MT, during Apr-May

2018.India is expected to overtake Japan to become the world's second largest steel producer soon and

has envisaged achieving 300 MT of annual steel production capacity by 2030.Steel consumption is

expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.India is expected to become the second

largest steel producer in the world by the end of 2018.

Source: (Secondary Information): India Brand Equity Foundation

Industry’s sales graph is on the rise. Based on the above data and an increase in sales, investors

propose to enhance the capacity.

3. Project Description

3.1 Project details

Sl.No Description Details

I Name of the project ILC Iron & Steel Pvt.Ltd

II Location

Sy.No 15, 16, 17, 29, 36,37,38 ,51

Village Kunikera

Area Private land 102Acres and 34 Guntas

District Koppal

State Karnataka


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III Present Land use pattern of the industry Acres

Total Land area 48.90

Built-up area 27.38

Production Block 13.14

Storage yard 10.95

ETP 0.82

Others 2.47

Roads 1.95

Green Belt 16.60

Open Area 2.97

3.2 Project site selection

Promoters are very conscious to the nature. Initially, after identifying the area, they have studied for

reserve forests, monuments, heritage buildings and wild life sanctuary. After confirming that there are

no endangered, threatened or rare plant species near the plant site or within the 25 kms radius of the

industrial estate that need to be conserved, promoters have established the industry at the location

mentioned above. Now, adjoining to the existing industry, investorshave acquired the land and intent

to enhance the size as well as production capacity.


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Fig.1: Topographical map of the Area

ILC Iron & Steel Pvt.Ltd


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Fig.2: General Location

ILC Iron & Steel Pvt.Ltd


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Fig.3: Site Layout


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3.3 List of Products

Below table depicts the present and proposed production quantities

I. Products

Product Name Consented

Quantity TPD

Proposed

Quantity

TPD

Total

TPD

Rolling Mill ( Bar, Rod ,Structural and Allied

products of iron )

665.00

0.2 MTPA

ISP

1330.00

0.4MTPA

ISP

1995

0.6 MTPA

ISP

Pellet plant 00.00

4000

(1.2 MTPA)

4000

(1.2 MTPA)

Tools for the above products production

Name of the tool Existing

Capacity

Proposed

Capacity

Total

capacity

Sponge Iron unit 4Kilns of 150

TPD

1Kiln of 350

TPD

950 TPD

Induction Melting Furnaces and /or Electric Arc

Furnaces for steel making of 25 Tons Capacity each

0.2 MTPA 0.4 MTPA 0.6 MTPA

Induction Melting Furnaces/ Electric Arc Furnaces

for steel making

25 Tons 4 Nos 40 Tons 5 Nos 25T-4 and

40T-5

Billet Casters for Casting liquid steel into billets 1 CCM (2

Strands)

1 CCM (3

Strands)

2 CCMs ( 5

Strands)

Ladle refining furnace (LRF)for secondary refining 25T-1No 40T-1No 25T&40T 1

each

AOD 0.00 40T-1No 40T-1No

TPD - Tons per Day, MTPA – Million Tons per Annum

II. CAPTIVE POWER GENERATION PLANT

Source Consented MWH Proposed MWH Total

MWH

WHRB/FBC 12 18 30

3.4 Raw materials requirement

Required raw materials like iron ore, Dolomite and Bentonite are available locally. Coal is imported.


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3.5 Brief Manufacturing process

Sponge Iron

Iron ore undergoes reduction reaction with Coal in rotary kiln.Once reaction is complete, sponge iron

is collected.

Flow chart

Iron ore/PelletDolamite

Coal

Rotary Kiln

Coal Char By-Product

Magnet

Spnge Iron

Emissions to Captive power

system

Pellets

Iron ore fines taken after beneficiation is subjected to grinding in ball mill. It is mixed with

Bentonite and water. Finally the mixer is passed through rotary kiln and after cooling, it is

collected as nodules.

Flow chart

Iron Ball Mill

MixerBentonite

Water

Pellets

3.6 Resource Re-Cycling Optimizing /Re-cycling

Coal-Char is the by-product. Other by-product is a mixture of Sulphurdioxide, oxides of Nitrogen and

Carbon monoxide. These are used for captive power generation.


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3.7 Water requirement

At present industry is consuming 1,00,000 Liters per day. Further industry requires additional 2,

00,000 Liters per day.Total water requirement will be 3,00,000 Liters. The water needs for the industry

will be met from natural rain water harvesting and bore wells.

3.8 Power requirement

The total power requirement for the plant after expansion is 30 MW and will met from in-House

generation. Any exigency shall be met with the local state government 220KV feeders.

4. Site Analysis

At present industry is in operation. Capacity enhancement if approved will take place within the

site.The area is well away from sensitive sites such as National parks, Wild life sanctuaries, biosphere

reserves, defense installations and religious places.

Temperatures in and around the site during day time is 410C and during night times it is 24

0C in

summer. During monsoon it will be between 300C and 22

0C and in winter it will varies between 30

0C

during day time and 100C in the night. Relative humidity is between 60% and 65%. Nearly 67% annual

rainfall is between June and September. A few showers will be received during the October. Maximum

average rainfall is 470mm in the area during monsoon period.

Secondary source

5. Brief Planning

Industry proposes to increase the production capacity by installing few additional tools. It continues to

work in shifts round the clock. Transportation of workers is a not a concern. Industry has engaged

private operators for the purpose.

5.1. Proposed combined land use pattern

Sl.No Description Acres

I Total Land area 102.85

II Built-up area 57.60

Production Block 27.65

Storage yard 23.04

ETP 1.73

Others 5.18

III Green Belt 34.97

IV Roads 4.11

V Open Area 6.17


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5.2. Rehabilitation and Resettlement

Since the industry is in operation and expansion is adjacent to and within the adjoining land R& R is

not required. By providing direct and indirect employment to the locals and also by facilitating the

villages by conducting various developmental programs in a phased manner in association with local

bodies, Koppal district will develop socio-economically more.

5.3 Post project monitoring

The industry has defined environmental monitoring program to monitor the Ambient Air Quality as

well as Stack Emissions. Industry has installed online monitoring system. The industry has engaged

the third party laboratory for monitoring air quality periodically and reports are being submitted

regularly to KSPCB. Compliance report on EC taken is being submitted every six months to regional

office of MoEF & CC. So far no abnormalities are observed. If abnormality is observed after

expansion, corrective measures will be taken immediately.

6. Greenbelt development

6.1 Objective

Industry has an excellent developed green belt. It is a continuous process.It will continue to improve

the green belt where ever possible in addition to the existing greenery.

6.2 Plant species for green belt.

A wide range of plant species are grown in the industry site. This wide range covered plants of

Fast growing type

Thick canopy cover

Perennial green nature

Native origin

6.3 Design of Green Belt

As far possible the following guidelines will be considered in newly acquired sitefor green belt

development. Shrub and trees will be planted in encircling rows around the outer three rows (away

from planted side)

The short trees (<10 m height) will be planted in the first two rows (towards plant side) of the green

belt. The tall trees (>10 m height) will be planted in the outer three rows (away from plant side).

Planting of trees in each row will be in staggered orientation.

In the front row, shrubs consisting of Callistemon, Prosodies etc., Will be grown.

Since the trunks of the tall trees are generally devoid of foliage, it will be useful to have shrubs

in the fronts of the trees so as give coverage to this portion.

The spacing between the trees will be maintained slightly less than the normal spaces


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7. Recycle of waste generation

The possible sources of waste generated for recycle is water. It is being recycled.

8. Environment management cell

The unit will provide upgraded Environment Management cell as below:

8.1 Environment Management Cell

The Environment Management Cell consists as given below

1. Manager

2. Process in charge from production

3. In charge Maintenance Department

4. In charge Operation ETP, Air Pollution Control Division, Solid waste management

9. Handling of raw materials and finished materials

The raw materials like Iron ore, Dolomite and coal are stored under covered shed.These raw materials

are transferred to production block by conveyer. Bentonite is received in bags and preserved

10. Project schedule and cost estimates

Once industry gets Environmental Clearance and Consent to establish for enhanced capacity, it will

start construction activity. Later it will obtain Consent to Operate from State Pollution Control to start

the commercial activity. At present it will continue to produce consented products.

Industry is expecting to get the clearances from regulatory bodies by April 2019. Industry will incur an

estimated additional investment of Rs 300Crore. Total project cost will increase to Rs.621 Crore.

Industry has allocated an amount of about Rs.62.00 Lacs for Environmental Protection measures

including green belt development.

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