THE CAPACITY EXPANSION OF INTEGRATED IRON & STEEL...

PRE-FEASIBILITY REPORT

ON

THE CAPACITY EXPANSION OF INTEGRATED IRON & STEEL PLANT TO 8.0 MTPA CRUDE

STEEL IN JAJPUR DISTRICT, ODISHA

TO

TATA STEEL KALINGANAGAR

SEPTEMBER 2016

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT

TABLE OF CONTENTS

Page

- i -

1 - EXECUTIVE SUMMARY

2 - INTRODUCTION OF THE PROJECT

Identification of the Project & Project Proponent ....................... 2-1 Brief Description of the Nature of the Project ........................ 2-2

Need for the Project and Its Importance to the Country ............. 2-3 Demand-supply Gap, Imports Vs. Indigenous Production,

Export Possibility & Domestic/Export Markets ..................... 2-4 Gap Analysis ....................................................................... 2-5 Import & Export Scenario .................................................... 2-8 Market Areas ...................................................................... 2-9

Employment Generation due to the Project ............................. 2-10

3 - PROJECT DESCRIPTION

Type of Project Including Interlinked Project ............................. 3-1 Location ................................................................................. 3-1 Details of alternate sites considered and the basis of

selecting the proposed site .................................................. 3-1 Size or magnitude of operation................................................. 3-2 Layout .................................................................................... 3-2 Project Description with Process Details ................................... 3-3

Coke Oven and By-Product Plant.......................................... 3-5 Sinter Plant ........................................................................ 3-6 Pellet Plant ......................................................................... 3-6 Blast Furnace ..................................................................... 3-6 Steel Making ....................................................................... 3-7 Lime Calcining Plant ........................................................... 3-8 Mills ................................................................................... 3-8 Captive Power Plant ............................................................. 3-9

Raw Materials ......................................................................... 3-9 Resource Optimization/Recycle & Reuse envisaged in the

project ............................................................................. 3-10 Availability of Water and Power .............................................. 3-11

Water ............................................................................... 3-11 Power ............................................................................... 3-11

Waste Generation and Management ....................................... 3-11 Wastewater generation & Management ............................... 3-11 Solid Waste Management ................................................... 3-12 Air Pollution...................................................................... 3-13 Coke oven ......................................................................... 3-13 Sinter plant ...................................................................... 3-14 Pellet Plant ....................................................................... 3-14


TABLE OF CONTENTS (Continued)

Page

- ii -

Blast furnace .................................................................... 3-14 Lime Calcining Plant ......................................................... 3-14 LD converter ..................................................................... 3-15 SMLP ( Secondary Metallurgy and Ladle Preparation ) ......... 3-15 Caster Area ....................................................................... 3-15 Mill ................................................................................... 3-15 Captive Power Plant ........................................................... 3-16

4 - SITE ANALYSIS

Connectivity ........................................................................... 4-1 Road Connectivity ............................................................... 4-1 Rail Linkage ........................................................................ 4-1 Airport ................................................................................ 4-1 Sea Port .............................................................................. 4-1

Land Form, Land Use and Land Ownership .............................. 4-2 Topography ............................................................................. 4-2 Existing Land Use ................................................................... 4-2 Soil ........................................................................................ 4-3 Climatic Conditions ................................................................. 4-3 Social Infrastructure Available ................................................. 4-4

5 - PLANNING BRIEF

Planning Concept .................................................................... 5-1 Population Projection .............................................................. 5-1 Land use planning .................................................................. 5-1 Assessment of Infrastructure Availability ................................. 5-2

6 - PROPOSED INFRASTRUCTURE

Industrial Area ........................................................................ 6-1 Residential Area ...................................................................... 6-1 Greenbelt................................................................................ 6-1 Proposed Social Infrastructure ................................................. 6-2 Connectivity ........................................................................... 6-2 Drinking Water Management & Sewage System ......................... 6-3 Solid Waste Management ......................................................... 6-3 Power Requirement & Supply/Source ....................................... 6-4

7 - REHABILITATION & RESETTLEMENT

8 - IMPLEMENTATION SCHEDULE & COST ESTIMATE

Implementation Schedule ........................................................ 8-1 Capital Cost Estimate .............................................................. 8-1


TABLE OF CONTENTS (Continued)

Page

- iii -

9 - ANALYSIS OF PROPOSAL

Financial Benefits of the Project .............................................. 9-1 Social Benefits ........................................................................ 9-1

TABLES

Table 3-1 - Major Plant Units and Facilities .............................. 3-3

FIGURES

Fig. 3-1 - Site Location Map ..................................................... 3-2 Fig. 3-2 - Process Flow Sheet for production of 8.0 MTPA

Crude Steel, 7.0 MTPA of HR coils & 2.0 MTPA LP ................ 3-4 Fig. 4-1 - Topography of the Study Area ................................... 4-3


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1 - EXECUTIVE SUMMARY

This Summary presents a brief outline of the Pre-feasibility report for the

proposed plan for expansion of the existing integrated iron and steel

making facilities of Tata Steel Kalinganagar (TSK) at Kalinganagar,

Distict Jajpur, Odisha.

1. TSK had conceived to produce 6.0 MTPA of crude steel in

Kalinganagar Industrial complex, Odisha. Environmental Clearance

for this project was accorded by Ministry of Environment Forest and

Climate Change (MoEFCC) on 7th November 2006. Subsequently, on

10th October 2012, based on proposal by TSK, MoEFCC amended

the above clearance due to reorientation of layout, changes/addition

of units, and value addition by cold rolling of product. Phase-I of the

integrated steel plant for producing 3.0 MTPA crude steel is already

commissioned.

2. TSK is now planning to expand the plant for a total production of

8.0 MTPA crude steel, through increase in capacity of individual

units and optimizing capacities in the existing plant site.

3. The production plan of the proposed expansion is as follows:

Crude Steel .. 8.00 MTPA

Hot Rolled Coils .. 7.00 MTPA

Cold rolled products .. 2.20 MTPA

Long Products .. 2.00 MTPA (Bar, Wire Rod, Medium & Light Structurals etc.)

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 1 - Executive Summary (cont’d)

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4. The proposed production of crude steel and subsequent rolling

would be accomplished via Blast Furnace (BF)-Basic Oxygen

Furnace (BOF)-Caster route, followed by hot and cold rolling to

produce flat as well as long products. The production facilities

would be adequately supported by necessary auxiliary facilities such

as raw materials unloading and storage, proportioning of raw

materials, electric power receiving and distribution stations, various

utility facilities, water treatment and distribution system, etc.

5. The proposed site for the expansion of the steel plant is located

within the Kalinganagar Industrial Complex (KNIC) in Jajpur district

of Odisha and is owned by TSK. The plant site is bounded by the

Daitari-Paradip expressway, also designated as NH-5A, on the west

and NH-215 on the northern side which connects the plant site to

J K Road. Kalinganagar Industrial Complex has received status of

National Investment & Manufacturing Zone (NIMZ) from Ministry of

Commerce & Industry, Department of Industrial Policy & Promotion

(DIPP), Government of India under NIMZ Scheme. As per the Clause

18 of NIMZ guidelines, Environment Clearance for industries within

NIMZ would be given high priority.

6. The total make-up water requirement for the plant, after the

expansion to 8 MTPA crude steel capacity, shall be around

5,500 cu m/hr, i.e. about 29 MGD. The source of water for the

existing steel plant is river Kharsua from where raw water is

pumped and stored in a raw water storage tank. Water for the

proposed plant is considered to be available from existing raw water

reservoir on a continuous basis.


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7. The estimated power requirements of various plant units including

CRM as well as utilities and auxiliary facilities for the project would

be about 4,935 Million KWh, which would be sourced from captive

generation and Grid Power supply system.

8. The total area for steel plant provided by Govt. of Odisha as per the

MoU is around 3,472 acre, of which 3,089 acre is available for the

steel plant. This area is adequate to accommodate the expansion

facilities, including process units, water reservoir, solid waste

processing area and 33% greenbelt.

9. The proposed production facilities would generate various pollutants

in form of air emission, wastewater discharge, solid waste, etc,

which would be managed by adopting state-of-art technologies,

installation of control devices and treatment plants and by

maximum recycling/reuse of the wastes, wherever applicable.

10. TSK has established benchmark with regard to its social

responsibility towards the community and has undertaken extensive

range of initiatives in the sphere of (i) livelihood & employability

(ii) education (iii) health (iv) local infrastructure development

(vi) ethnicity. The augmentation and extension of the above

mentioned initiatives would extend to the local people of the study

area. The focus is aimed at the local scheduled tribe and schedule

caste groups.

11. It is envisaged that the project would be completed in a period of

60 months from receiving Environmental Clearance. It is considered

that construction work at site for various plant facilities of the

project would commence after completion of major engineering

works.


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12. The order-of- magnitude capital cost of the plant would be about

Rs 21,000 crore. This includes Plant and equipment (as erected)

including civil and structural work, Design, engineering and

administration during construction and contingency costs.

13. It is also expected that the proposed expansion project would

augment the existing social developmental activities and further

promote - i) Improvement in the socio-economic status of the region

by generation of direct and indirect employment opportunities, ii)

Development of ancillary small and medium industries, trade &

commercial establishments and local entrepreneurship.


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2 - INTRODUCTION OF THE PROJECT

IDENTIFICATION OF THE PROJECT & PROJECT PROPONENT

India is the 3rd largest producer of crude steel globally with a total

Finished Steel Production of around 91 MTPA (Million Tons per Annum)

in the fiscal year 2015-16. With immense encouragement from the

Government and its pro-active approach, steel industry is looking

forward to a better & flourishing future.

With operations in 26 countries, commercial presence in over

50 countries and 80,000 employees across five continents, Tata Steel

Group is one of the leading global manufacturers of steel with annual

crude steel production of nearly 27 MTPA in FY16. It is now the world's

second-most geographically diversified steel producer. The performance

of the company is fortified by the performance culture committed to

aspiration targets, safety and social responsibility, continuous

improvement, openness and transparency.

In India, Tata Steel, with the intent of inclusive growth, has planned

a few Greenfield projects of which the steel plant at Kalinganagar

Industrial complex (KNIC) at Kalinganagar in Jajpur District in Odisha is

a fore-runner. Initially, this steel plant was conceived to produce

6.0 MTPA of crude steel, along with power generation of 175 MW from

by-product fuel gases. Environmental Clearance for this project was

accorded by Ministry of Environment, Forest and Climate Change

(MoEFCC) on 7th November 2006. Subsequently, on 10th October 2012,

based on proposal by Tata Steel Kalinganagar (TSK), MoEFCC amended

the above clearance due to reorientation of layout, changes/addition of

units, and value addition by cold rolling of product. MoEFCC also issued

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 2 - Introduction of the Project (cont’d)

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the validity extension letter and permission for use of LDO and Wet

Quenching on 13.05.2015. Phase-I of the integrated steel plant for

producing 3.0 MTPA crude steel is already commissioned and currently

under ramp up and stabilization

TSK is now planning to expand the plant for a production of

8.0 MTPA crude steel, through increase in capacity of individual units

and optimizing capacities in the existing plant site.

Brief Description of the Nature of the Project

The brief profile of the expansion project is as follows: Hot Metal .. 8.00 MTPA Crude Steel .. 8.00 MTPA Hot Rolled Coils .. 7.00 MTPA Cold rolled products .. 2.20 MTPA

Long Products .. 2.00 MTPA (Bar, Wire Rod, Heavy, Medium & Light Structural etc.)

The proposed production of crude steel and subsequent rolling

would be accomplished via Blast Furnace (BF)-Basic Oxygen Furnace

(BOF)-Caster route, followed by hot and cold rolling to produce flat as

well as long products.

The project falls under category A, Section 3 (a) of EIA Notification

September 2006 and amendment thereof vide Notification No. S.O 3067

(E) dated 1st December 2009.

The following table depicts the comparison between the production

figures as per existing EC for 6.00 MTPA crude steel against the

proposed 8.00 MTPA crude steel production stage.


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Sl. Plant Capacity 6 MTPA 8 MTPA

1 Steel Making 6.0 8.0

2 Mills

a Flat Product ( HR ) 5.5

7.0

Flat Product ( CR ) 2.2 2.2

b Long Product - 2.0

NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY

The Indian steel industry has entered into a new development stage

from 2007-08, riding high on the resurgent economy and rising demand

for steel. Rapid rise in production has resulted in India becoming the 3rd

largest producer of crude steel in 2015 (around 90 MTPA).

There is potential to increase per capita steel consumption in India.

Current 61 kg per person per annum, against China 490 kg, United

States 300 kg and World average of 208 kg (as per World Steel

Association report 2016).

Major factors which carry the potential of raising the per capita

steel consumption in the country are listed below:

Infrastructure improvement initiatives, such as ‘Smart Cities project’, 'Housing for All by 2022', ‘Atal Mission for Rejuvenation and Urban Transformation (AMRUT)’,

Manufacturing growth driven by Make-in-India initiative,

Increase in urban population to 600 million by 2030,

Emergence of the rural market for steel, currently consuming around 10-15 kg per capita buoyed by projects like MGNREGS, development of ‘Rurban Clusters’ under the Shyama Prasad Mukherjee Rurban Mission, Pradhan Mantri Gram Sadak Yojana, among others.


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As per Joint Plant Committee (JPC), the current steel capacity in

India is about 122 MTPA, catering to demand of about 81.5 MT in FY16.

The crude steel capacity will need to go up to 180 MTPA by FY21 to cater

to the projected demand growth. This would mean that capacity

additions planned by most of the major steel players need to come on

stream in next 5 years.

DEMAND-SUPPLY GAP, IMPORTS VS. INDIGENOUS PRODUCTION, EXPORT POSSIBILITY & DOMESTIC/EXPORT MARKETS

Presently, two sets of demand projections are available in the

country - ‘Ministry of Steel’s (MoS) draft report on circulation’ and World

Steel Association’s (WSA) ‘Mid-Term Forecast Sept - 2015’. The overall

scenario of the forecast is presented below.

Ministry of Steel, GOI - Draft Report in Circulation (Million Tons)

Steel demand CAGR%

2015 - 16 GDP

Growth 2025-26 2032-33

81.50

6.5% 176 273

7.0% 186 298 8-9%

8.0% 208 339

World Steel Association MTF – Sep’15 (Million Tons)

India 2015 2020 2025

Finished steel demand

80 120 177 8%

CAGR : Compound Annual Growth rate

Considering forecast by both agencies the steel demand would be

in the range of 177–186 Million Ton by year 2025-26. The MoS’s forecast

of 186 million tons of finished steel based on a GDP growth assumption

of 7.0% per annum, is slightly higher than the WSA’s forecast of 177

million tons by 2025. To be conservative, WSA forecast is taken as the

estimate of demand for this scenario analysis.


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Steel Demand Growth (Million Tons): As per WSA

Year Demand CAGR

2015-16 81.5

8.0%

2016-17 88

2017-18 95

2018-19 103

2019-20 111

2020-21 120

2021-22 130

2022-23 140

2023-24 152

2024-25 164

2025-26 177

Based on the domestic consumption level of 81.5 million tons in

2015-16, the projected demand is assumed to grow @ 8.0% annually,

which is likely to be attainable given the current thrust of the

government in encouraging foreign investments in infrastructure and

manufacturing sectors of the economy. WSA observes that with abundant

natural resources and continuous urbanization, long-term prospects are

favorable and annual growth of >7-8% in the next 15-20 years is an

attainable target.

Gap Analysis

Keeping the above in view a comparative analysis of the likely

demand, availability and gap/surplus scenarios as may be obtaining in

the terminal periods of this exercise in terms of finished steel is

presented in the following table.


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Demand and Availability of Steel: Gap Analysis (Million Ton)

Particulars 2015-16 2020-21 2025-26

Finished steel Demand (with CAGR of 8%)

81 120 177

Finished steel Production 81 120 177

Crude Steel Production 90 133 197

Crude Steel Capacity required (based on demand)

127 167 246

Capacity Utilization Rate 71% 80% 80%

Crude Steel Capacity projection (based on current visibility)

127 146 -

Gap / Additional Capacity required

-21 -100

As per National Steel Policy 2005, 300 Million Tons crude steel

capacity would be required supported with adequate thrust on exports.

Also, according to the report ‘The steel Industry: Key Reforms for a

Brighter Future’ by the National Council of Applied Economic Research

(NCAER) published in September 2015, developed India would require

steel capacity of at least 700 million tonnes and steel consumption of at

least 600 million tons by year 2050. However, at the same time, NCAER

study is apprehensive of India achieving the 300 million ton capacity by

2025.

Based on the demand projection required steel capacity in India is

expected to be 240-250 MTPA by FY25-26. However considering the

ability to grow by steel companies and challenges related to greenfield

projects (e.g. land acquisition, regulatory approvals, high capex), there

may be significant gap between capacity required and expected capacity

addition. Based on the current visibility and announcement by steel

companies, capacity by FY21 is expected to be 140-150 MTPA. Hence

additional capacities of around 100 MTPA is required in next 10 years to

meet the growing steel demand in India. If additional capacity is not put

up, it will necessitate import of steel and thereby adversely impacting the

foreign exchange outflow.


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The overall demand of steel is further split-up into two broad

groups of steel products - long or shaped products comprising of Bars

and Rods, Structural & Rails and flat products comprising of Plates,

Coils, Sheets including Pipes & Tubes.

While splitting the overall demand of finished steel, especially over

a long time horizon, allowances have been made for the expected changes

in composition of the country’s economy. It is well known that as

constructional activities precede manufacturing operations, the share of

long products dominates during the developing phase of an economy.

Once developed, with gradual expansion of the manufacturing base, the

share of flat products catches-up and eventually matches with that of

the long or shaped products. For some highly advanced economies, the

share of flat products may exceed that of long products as well.

Keeping a tab on the projected growth path of Indian economy, a

set of progressively altered ratios between the consumption of long and

flat products has been considered while determining the expected

demand of these two groups of products for the future period.

Relative Shares of Long & Flat Products

Periods Long Flat

2015 - 16 58% 42%

2015-2020 56% 44%

2021-2025 54% 46%

Adopting these progressively altered shares of the long and flat

products consistent with the changing character of the domestic

economy, the future demand estimates of the two groups of products for

the terminal years work out as under.


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Demand of Long & Flat Products (Million Tons)

Periods Long Flat Total steel

2015-16 48 34 81

2020-21 67 53 120

2025-26 96 81 177

Import & Export Scenario

Global steel trade would continue be a natural phenomenon offering

opportunities as well as inviting competition, especially in the WTO

regime of the global economy. The current measure of protectionism by

economies will not likely to be there as China within 10years of time is

likely to address the overcapacity it has currently. Product

competitiveness in terms of price and profile is the key to survive and

overcome the ‘threats’ from imports and add revenues through exports.

Domestic Consumption of Steel & Share of Imports (Million Ton)

Year Domestic Finished

production

Domestic

Consumption

Imports Exports

Quantity % of

consumption Quantity

% of Production

2009-10 56.3 59.3 7.4 12% 3.3 6%

2010-11 63.3 66.4 6.8 10% 3.5 6%

2011-12 69.3 71.0 6.9 10% 4.6 7%

2012-13 69.9 73.5 7.9 11% 5.4 8%

2013-14 74.2 74.1 5.4 7% 5.6 8%

2014-15 76.3 76.9 9.3 12% 5.6 7%

2015-16 75.2 81.5 11.7 14% 4.1 5%

The share of imported materials has been of the order of 10-12%

of the domestic consumption. The share has remained by and large

steady fluctuating between a narrow band of 9-12% except in 2015–16

when imports surged as Chinese economy slowed down and Chinese steel

producers resorted to steel exports to prop up their capacity utilizations.


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However, in the context of long term projections, the current

market noises would not have much impact, adverse or otherwise

whatsoever. The country’s economy has immense potential to grow

pivoting on a rising spiral of increased availability of steel.

Market Areas

Among the many drivers of demand, the following are having

maximum influence in triggering consumption of Bars & Rods,

Structural and Plates:

Product/Category Demand Drivers

Bars & Rods

Infrastructure - House Building

Fasteners & Wires

Bright Bars

Structural

Infrastructure - High rises

Industrial Construction

Other Projects

Plates

Infrastructure – Bridges

Railways - Wagons, Coaches, Tankers

Industrial Construction

Defence Production

Energy - Boilers, Pressure Vessels, Penstocks

HR Products

Tube making industry

Railways - Wagon & Coach

Automobiles

Industrial Machinery

CR Products

White goods - Refrigerators, Air-conditioners

Automobiles

Silos & Containers

Precision Tubes

Furniture

Galvanised &

Coated

Automobiles

Consumer durables

Construction

Packaging & Furniture


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From the foregoing assessment, it would be seen that there is good

market potential for long products as well as flat products in the

immediate future. Hence, Tata Steel Kalinganagar has conceived

augmentation of the capacity of the steel plant as well as installation of

new long product mills for production of long products.

EMPLOYMENT GENERATION DUE TO THE PROJECT

In the construction phase of the proposed project both direct and

indirect deployment of local manpower would be facilitated. The nature

of the employment opportunities would involve contractual & casual

labour work for semi skilled & unskilled labourers and regular

employment for skilled locals. The proposed expansion would indirectly

promote the development of ancillary industries and allied indirect

employment opportunities. As a whole, the project would generate

income, contribute to the local economy and lead to diversification of

skills.

The manpower considered for 6MTPA existing manpower is

sufficient for operation and maintenance of the plant at 8MTPA stage

with minor addition for LP Mills. However, there would be requirement of

around 5,000 contract labourers. During construction phase, around

8,000-10,000 labourers would be employed.


3-1

3 - PROJECT DESCRIPTION

TYPE OF PROJECT INCLUDING INTERLINKED PROJECT

The proposed expansion project includes higher production of crude

steel by 2.0 MTPA (Production of 6.0 MTPA crude steel was the actual

proposal, for which EC is already obtained) by increase as well as

optimization of capacities of individual units, to be sited within the

existing premises of the plant at Jajpur, Odisha.

LOCATION

The plant site is located within the Kalinganagar Industrial Complex

near Duburi in Jajpur district of Odisha. The study area is surrounded

by the geographical grids approximately ranging from 85º55’00” to

86º06’31” E longitude and 20º52’31” to 21º03’21” N latitude. A glimpse

of the project site is shown in Fig. 3-1.

DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED SITE

The augmentation of the capacity would mainly occur by installation

of units of higher capacities as well as installation of new Calcining

plant, caster and long product mills namely Bar & Wire Rod mill etc. The

area within the premises of the acquired land of TSK would be able to

house the additional units. Hence, more land would not be acquired. The

existing site has also the following adequacies:

i) Availability of adequate land for installation of additional units

ii) Availability of suitable infrastructure in terms of connectivity, availability of water & power

iii) Suitability of the land from topographical and geological considerations.

iv) Location away from forests, national park/sanctuaries, sea coast and ecologically sensitive elements

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 3 - Project Description (cont’d)

3-2

FIG. 3-1 - SITE LOCATION MAP

SIZE OR MAGNITUDE OF OPERATION

The proposed project would produce 8.0 MTPA crude steel and

about 9.00 MTPA saleable flat as well as long rolled products with the

help of purchased billets/slabs.

LAYOUT

The plant general layout of the proposed project is shown in

Drawing No 11410-97A-000-LTL-001. The layout is complete with the

plant units, administrative buildings, water reservoir, storage area, road

network and greenbelt


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PROJECT DESCRIPTION WITH PROCESS DETAILS

The plant would be designed for a capacity of 8.0 MTPA crude steel,

which, along with additional purchased billets/slabs, would be cast into

both flat products namely coils and long products namely rebars , wire

rods, structurals etc. for sale.

The proposed production of liquid steel and subsequent rolling

would be accomplished via Blast Furnace (BF)-Basic Oxygen Furnace

(BOF)-Caster route, followed by hot & cold rolling for production of flat &

long products.

The facilities at the production stage of 8.0 MTPA crude steel are

shown in Table 3-1.

TABLE 3-1 - MAJOR PLANT UNITS AND FACILITIES

Sl. No Unit Facility

1 Coke oven

2 x 88 ovens block, 5 m tall stamp charged, 3 x 62 ovens block, 6.25 m tall stamp charged

2 Sinter plant 496 m sq.

3 Pellet plant 744 m sq

4 Blast furnace

1 x 4330 cum

1 x 5870 cum

5 LD shop 3 x 310 t converter

6 Secondary

refining

1 x 310 t CASOB

1 x 310 t twin RH

2 x 310 t LF

7

Caster Shop 2 nos. twin - Strand slab caster

8 1 no. Multi strand Billet caster

9 LCP 4 x 600 tpd

10 HSM 7.0 MTPA

11 Long Product

Mill 2 MTPA Mill

12

13 CRM 2.2 MTPA Mill


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The production facilities would be adequately supported by

necessary auxiliary facilities such as raw materials unloading and

storage, proportioning of raw materials, electric power receiving and

distribution stations, various utility facilities, water treatment and

distribution system, etc.

The preliminary process flow sheet is shown in Fig 3-2. The

following write-up lays down details of the various process units:

FIG. 3-2 - PROCESS FLOW SHEET FOR PRODUCTION OF 8.0 MTPA CRUDE STEEL, 7.0 MTPA OF HR COILS & 2.0 MTPA LP


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Coke Oven and By-Product Plant

Stamp charged by-product recovery type coke oven plant has been

envisaged in Phase-II for meeting the charge coke requirement of Blast

furnaces after 8.0 MTPA crude steel expansion. Coke oven gas from the

ovens would be cleaned in by-product recovery unit and would be used

as a fuel in various heating applications inside the plant.

The Gross coke making capacity requiremet for the project after 8.0

MTPA crude steel stage would be :

Gross Coke , MTPA .. 3.5

Major by products from Coke Plant would be Coal Tar, Ammonia

and Sulphur.

Three (3) blocks of by-product recovery type stamp charged batteries

having 62 ovens each have been considered in Phase-II. The typical basic

design parameters of the coke oven battery in Phase-II are given below.

No. of blocks .. 3 No. of ovens in each block .. 62 Oven height, m .. 6.25 The coke oven plant in Phase-II would consist of following major

facilities:

i) Coal blending, crushing and conveying of coal to the coal

towers / conveyor charging, ii) Stamp charged, recovery type coke oven batteries (3 blocks of

62 ovens each), with oven machines and auxiliaries, iii) Coke dry quenching unit, iv) Land based pushing and charging emission control, v) Coke cutting and screening facilities, vi) By-product recovery plant.


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Sinter Plant

The existing 496 sq m capacity Sinter Machine of would produce 5

MTPA of net sinter to feed the Blast Furnace sinter requirement.

Pellet Plant

The proposed 744 sq m capacity Pellet plant would produce 6-7 MTPA of

Pellet as per requirement to feed the Blast Furnace. In addition to the above,

TSK would source pellet from outside upto 1.5 MTPA.

The produced pellet would be of size range of 6-16 mm and

compressive strength in the range of 250 kg/pellet.

For Pellet Plant , byproduct fuels of the steel plant ( Gases and Coal

Tar ) shall be used.

The pellet plant would comprise following facilities:

i) Feed Preparation ( Dry Grinding ) ii) Green Ball formation iii) Induration furnace iv) Storage and handling of Raw Material. v) Associated auxiliaries such as HVAC, Fire fighting facilities,

Plant Instrumentation / Automation etc.

Blast Furnace

To meet Crude steel production capacity up to 8.0 MTPA, a new

blast furnace (BF-2) of useful volume 5,870 cu m is proposed, along with

existing BF-1 (4,330 cu m), to cater the hot metal requirement for SMS.


3-7

Details of Blast Furnaces are as follows :

Item Quantity

Hot metal production, TPY .. (7.5 – 8.0 ) MTPA No. of furnaces .. 2 Operating days .. 350 Burden: .. - Sinter, % .. ~ (40- 60)

- Pellet, % ..

~ (40-60)

- Lump Ore % .. ~ ( 0-10 ) Blast Furnace would be complete with the following facilities :

i) Gas Cleaning Plant ( Wet / Dry ) ii) Top Gas Recovery Turbine iii) Slag granulation plant iv) Stove Waste Gas Heat Recovery v) Pulverised Coal Injection vi) Stock house and cast-house de-dusting system vii) Hot metal Pre-treatment

viii) Associated auxiliaries such as HVAC, Fire fighting facilities, Plant Instrumentation / Automation etc.

Steel Making

TSK would instal facilities to produce 8 MTPA crude steel from the

Steel-melt shop.

The facilities for 8.0 MTPA stage is shown in the table below:

Item Phase I Phase II

(Additional units)

Major Technological units

Specification Specification for additional units

HMDS 2 X 340 ton 1 X 340 ton

BOF Converter 2 X 310 ton 1 X 310 ton

CAS-OB 1 X 310 ton Nil

Twin RH First unit of 310 T Twin RH Second unit of 310 T Twin RH

LF - 2 x 310 ton

Slab caster 1 X twin-strand 1 X twin -strand

Billet caster - 1 no. multi - strand


3-8

In Phase-II, it has been envisaged to follow the similar plant

configuration as of the existing facilities in Phase I.

SMS would be complete with the following facilities :

i) Gas Cleaning Plant ( Wet / Dry ) ii) Secondary Emission Control System iii) Pollution Control Equipment iv) Associated auxiliaries such as HVAC, Fire fighting facilities,

Plant Instrumentation / Automation etc.

Facilities getting repeated in Phase II would be of similar

specification as of Phase I.

To meet the metallic need of BOF charge, either scrap or DRI/

Granulated Pig Iron or in combination shall be charged along with hot

metal from Blast Furnace. Required quantity of steel scrap / DRI shall

be sourced from outside.

LD Slag would be processed in Metal recovery Plant for further

process use , such as recycling in SMS / Sinter Plant or would be sold.

Lime Calcining Plant

At 8.0 MTPA production stage of crude steel, additional 2 ( two )

more Lime Calcination Plant , similar to existing ones ( 600 TPD ) would

be installed.

Mills

Hot Strip Mill (HSM): The existing hot strip mill would be

augmented to potential capacity of 7.0 MTPA hot rolled coil along with

the required auxiliary facilities.

Hot Rolled Coils would be sent to Cold Rolling Mill (CRM) and rest

would be sold as HR product.


3-9

Cold Rolling Mill (CRM): CRM would be having PLTCM (2.2 MTPA)

with further processing in Annealing / Galvanising lines / colour coating

line.

Long Product Mill: Long product mill would constitute of bar and

Wire rod mill / M&LS Mill of total capacity 2.0 MTPA.

Byproduct Gases of the Steel Plant shall be used as fuel in

reheating furnaces.

Captive Power Plant

The EC for 6.0 MTPA crude steel from the MoEFCC already includes

approval for the installation of 3X67.5 MW Power plant based on surplus

by-product gases. For the production of 8.0 MTPA crude steel, excess

energy is available, hence a fourth boiler with TG of capacity 67.5 MW

would be installed within the premises of CPP-1 which would have mixed

firing of by product gases and coal tar.

RAW MATERIALS

Sources of Raw Materials: The probable sources of major raw

materials (indigenous/imported) for meeting the production requirements

are given below.

Major Raw Materials Mode of transport

Iron ore Sea/Rail/Road

Coking coal Sea/Rail/Road

PCI coal Sea/Rail/Road

Limestone(SMS grade) Sea/Rail/Road

Fluxes Sea/Rail/Road

DRI Sea/Rail/Road

Steel Scrap Sea/Rail/Road

Slab / Billet Sea/Rail/Road

Other additives Sea/Rail/Road


3-10

The plant would produce both long and flat products, which would

have potential for sale in national as well as international market.

The estimated annual requirements of major raw materials are

presented below.

Sl. No.

Major Raw materials Estimated Quantity, tons

1 Coking Coal 5,500,000

2 Iron ore fines 13,000,000

3 Anthracite 120,000

4 Fluxes & Additives 3,000,000

5 PCI coal 1,400,000

6 Limestone 2,150,000

7 DRI/ Steel Scrap 900,500

8 Slabs / Billets 1,000,000

RESOURCE OPTIMIZATION/RECYCLE & REUSE ENVISAGED IN THE PROJECT

One of the most important resources is energy and it is proposed to

utilise the off gases from the Plant to the extent feasible, for generation

of power, thus optimising the utilisation of energy for the Project. In

addition, adopting a compact layout for the Plant would enable to

optimise the utilisation of land, which is another critical resource. By

utilising the fines and scrap generated during the process within the

plant for the production process, usage of raw materials is optimised.

Water consumption would also be optimised by treatment of water to the

extent possible and recycle of treated water as make-up in the network.


3-11

AVAILABILITY OF WATER AND POWER

Water

It is estimated that the total make-up water requirement for the

process units of proposed 8 MTPA plant shall be around 5500 cum/hr,

i.e about 29 MGD , which is within the water allocated ( 40 MGD ) to

Tata Steel by Water Resources Department . The source of water for the

existing steel plant is river Kharsua from where raw water is pumped and

stored in a raw water storage tank.

Power

The estimated power requirements of various plant units including

utilities and auxiliary facilities for the Plant is indicated below:

Annual energy consumption for steel plant 106 kWh .. 4,935

15-min maximum demand, MW .. 664

15-min maximum demand considering 0.9 pf MVA .. 737

The sources of power for the steel plant as envisaged are as follows:

i) State Grid power supply system at 400 kV. ii) Captive power Plant mainly based on surplus By-Product Gas.

ii) TRT (Top Gas recovery from Blast Furnace) iii) CDQ (Waste Heat from Coke Dry Quenching) The power would be received at 400 kV from the Grid and the same

would be stepped down to 220 kV at Bulk Power Receiving Station

(BPRS).

WASTE GENERATION AND MANAGEMENT

Wastewater generation & Management

Around 850 cum / hr of effluent is estimated to be generated from

cooling towers blow down, sewage treatment plant, BOD Plant, DM Water

Plant , Soft water plant, CRM etc, which would be treated in Central

Effluent Treatment Plant (CETP) for re-use in the process.


3-12

Water for firefighting system, floor washing, toilet flushing, dust

suppression and horticulture would be provided from effluent treatment

plant after primary treatment. Rest effluent water would be treated to the

desired extent in suitable treatment facilities and recycled back to the

process as make-up, facilitating adequate re-use of water in the

respective re-circulating systems and economizing the make-up water

requirement. Sewage generated from toilet blocks etc would be collected

by means of suitable sewer system for treatment in Sewage Treatment

Plant (STP). Solid waste generated from CETP would be disposed through

secured landfill.

Solid Waste Management

The estimated generation of major solid wastes is tabulated below:

Solid wastes

Expected generation Management Scheme

MTPA

BF Slag 2.5 Granulation in Slag granulation plant and used in cement manufacturing / contruction purposes. Air Cooled slag for land fill , road making and ballast purpose.

Steelmaking Slag

1.30 Recovery of metallics & non-metallics for in-plant use. Balance utilized as railway ballast, in construction aggregrate, after

processing.

Flue Dusts 0.16 Reuse in Agglomeration

Mill Scales/ Sludge

0.10 Reuse in agglomeration

Besides the above, there would be other solid wastes like clarifier

sludges, ESP/ Bag Filter dust, refractory debris etc. generated from the

proposed steel plant. While some of these can be recycled in the process,

others would be disposed off in environmentally friendly manner.


3-13

Air Pollution

Various process operations would generate particulate dusts,

volatile organic carbons (VOCs), oxides of sulphur and nitrogen and

carbon dioxide to the environment. The emission would be from the

stacks as well as there would be fugitive emission of dusts from open &

closed areas.

Fugitive dust emissions generating from the handling and

stockpiling of raw material in open stockyards would be controlled by

water sprinkling at regular intervals. All closed zone working areas

such as raw materials handling zone, conveyor transfer points, dust

generation points at screen would be provided with dust extraction (DE)

systems/dry fogging (DF) at several emission points to control the

fugitive dust emissions. DE system shall consist of suction hood followed

by bag filter / ESP, ducts, extraction fans and stack of appropriate

height.

Coke oven

Emissions from coke ovens would mainly result from coal charging

and coke pushing. Fugitive emissions may result from various leakages

from oven doors, charging lids, ascension pipe (AP) covers etc. Charging

emissions would be controlled by High Pressure Liquor Aspiration (HPLA)

injection in goose neck during charging. Coking emissions would be

controlled by efficient sealing of oven doors, water sealing arrangement

of AP cap etc. Land based fume extraction system would be adopted for

charging and pushing emission control. The hot coke would be quenched

by coke dry quenching (CDQ) with recovery of sensible heat for steam

generation.

The raw coke oven gas (COG) would be cleaned in by-product

recovery plant with recovery of tar, ammonia and sulphur to make it

suitable for use as plant fuel.


3-14

Sinter plant

Sinter Plant has been in opeartion with all pollution control

measures duly take care.

Pellet Plant

Emissions from Pellet Plant would be from Material handling and

grinding systemsand from Induration Process, which are controlled by

installation of Bag Filter / ESP with adequate height of chimneys.

Blast furnace

In addition to cleaning of BF gas in dry / wet gas cleaning plant

(GCP), which is a process requirement, the main sources of air pollution

would be stock house and cast house. The BF stock house would be

provided with DE systems complete with dust extraction hoods, ESP/

Bag Filter, ID fan and stack of adequate height. Similarly, the cast

house would have separate fume collection system during tapping of hot

metal and slag, would be equipped with FE systems along with bag

filter/ESP for separation of particulates before venting through a stack of

appropriate height. Heat recovery from stove wste gas shall be installed

for preheating of BF Gas and combustion air for stoves.

Lime Calcining Plant

The dust emission arising during calcination process in lime

calcining plant would be collected and taken through a bag filter to

separate out the lime/dolo fines. The lime/dolo fines thus collected

would be recycled to the sinter plant. The kilns in the calcining plant

and other dust generation areas would be provided with separate DE

systems, complete with bag filters / ESP and stack of adequate height to

clean the particulates.


3-15

LD converter

Besides BOF gas cleaning, which is basically a process necessity,

secondary emissions would be generated mainly from charging and

tapping operations. The secondary emissions of the steelmelt shop would

be controlled by providing ESP/Bag Filter.

SMLP (Secondary Metallurgy and Ladle Preparation )

The primary emissions of LF would be collected by fume extraction

(FE) devices. Dust laden fumes would be indirectly cooled and cleaned

through an ESP/ BF for separation of particulates and the clean gas

would be vented into the atmosphere through a tall stack of adequate

height. The secondary emissions would be controlled through canopy

hood extraction, which would be integrated with the main system to

clean the fugitive emissions during charging and tapping operations.

The gas cleaning system would be complete with water cooled duct, fume

and gas cooler, bag house, ID fan and stack of appropriate height.

Caster Area

The water required for cooling the hot cast slabs and billets would

generate hot fumes comprising mainly water vapour, hot waste water and

suspended particulates which would be treated in Wastewater treatment

Plant. The slab casting area would be provided with adequate ventilation

in order to have the water vapour properly dispersed.

Mill

Burning of the by-product fuel gases in reheating furnace would

give rise to the emissions of particulates, CO2 and NOx. NOx emissions

would be controlled by optimising the excess air supply and proper

burner design. In addition fume extraction (FE) system would be

installed. The flue gas, which is fairly clean, would be vented through a

stack of adequate height. The acid pickling line of CRM would be

provided with a fume extraction (FE) system.


3-16

For annealing of pickled cold rolled coils, Coke Oven Gas / mixed

gas would be used as fuel in the annealing furnaces. The waste produced

due to burning of fuel would be vent to the atmosphere through a stack

of adequate height.

The non-annealed cold rolled coils would undergo hot dip

galvanisation in molten zinc baths followed by chromate passivation.

These processes would generate vapours and fumes which would be

controlled by fume extraction systems.

Captive Power Plant

The surplus by-product fuels gases BFG, LDG and COG would be

burnt in the boilers for generation of power. Power would also be

generated from CDQ and BF TRT units. The flue gas thus generated

from the boiler would be vented through stack of appropriate height.

Boilers shall also have liquid fuel support.


4-1

4 - SITE ANALYSIS

CONNECTIVITY

Road Connectivity

The site is bounded by the Daitari-Paradip expressway, also

designated as NH-5A, on the west and SH-20 on the northern side which

connects the plant site to J. K. Road. The expressway is connected to

NH-5 at Chandikhol. The site is connected by roads, including National

highways, to Bhubaneshwar/Cuttack and Paradip Port.

Rail Linkage

The plant site is located north-west of Jakhapura railway station on

Howrah-Chennai main line. Daitari-Jakhapura railway line runs on the

eastern periphery of the Kalinganagar Industrial Complex area. TSK is

exploring the feasibility of second rail connectivity with Angul – Sukinda

line for flexibility and improved connectivity.

Airport

The nearest international airport is at Bhubaneshwar, about

100 km from site.

Sea Port

Paradeep port and Dhamra Port are about 120 km and 140 km

respectively from the plant site. Proximity of seaports is one of the

distinct advantages for the proposed expansion of the steel plant.

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 4 - Site Analysis (cont’d)

4-2

LAND FORM, LAND USE AND LAND OWNERSHIP

The proposed site for the expansion of the steel plant is located

within the Kalinganagar Industrial Complex (KNIC) in Jajpur district of

Odisha and is owned by TSK. Other industries such as NINL, Visa

Industries, Orion Ispat, Jindal Stainless Limited, etc. are also located

within KNIC , in the vicinity.

The present core zone land use is basically built-up area for industrial

purpose with greenbelt, water reservoir and solid waste processing &

storage area.

TOPOGRAPHY

The topography of the study area is generally flat with small hillocks

scattered in the study area. The average elevation of the study area is

51m above msl.

The topographic features of the study area may be seen from Survey

of India Topo Sheet Nos. 73 L1, H13, K/4, G/16, L/2, H/14, K/8, L/5 &

L/6 and as extracted in Fig 3-1 on the next page.

EXISTING LAND USE

The existing land use of the area around the plant site consists of

waste lands, mixed jungle, agricultural land, industrial area, plantation,

human habitations, water bodies and other built-up areas.


4-3

FIG. 4-3 - TOPOGRAPHY OF THE STUDY AREA

SOIL

The soil cover of the plant area is mostly of sandy loam in nature,

reddish in colour with grey soil in some places. The soil is reported to be

slightly basic in nature. The hydraulic conductivity of the soil is high

due to higher percentage of sand in the soil.

CLIMATIC CONDITIONS

The regional climate is humid tropical. The day time temperature

during April-May exceeds 44ºC with humidity 69%. The humidity level

rises to a level above 80% in the months of July-August. The winter

season brings down the temperature as low as 8.50C with humidity levels

around 60%. The annual average rainfall is 1530 mm. Wind flow is

generally distributed and wind speed ranges from 8.5 to 20.3 kmph.


4-4

SOCIAL INFRASTRUCTURE AVAILABLE

1. The project area falls under ‘Kalinganagar Industrial Complex

(KNIC)’, which as per the notification by Govt. of Odisha is an

Industrial Area. KNIC has received status of National Investment &

Manufacturing Zone (NIMZ) from Ministry of Commerce & Industry,

Department of Industrial Policy & Promotion (DIPP), Government of

India under NIMZ Scheme.

2. With development of several large and medium scale industries, the

study area has witnessed speedy development of infrastructure with

regard to road linkages, black top roads, communication facilities,

trade and commerce. The State Highway No.2 connects Jajpur and

Talcher and the Expressway that runs from Daitari and Paradeep

Port are in the study area.

3. The General Hospital in Jajpur Town is the main health care centre

in the study area, equipped with modern facilities. MEDICA-TS

hospital is also in operation. There are few villages having primary

health centres as well.

4. Socioeconomic infrastructure facilities like that of schools (both

primary & secondary), banks, post office and shopping centres are

available in the study area.

5. With regard to education, the district of Jajpur is characterized by

several educational and professional institutes namely B.B. High

School, Dasarathpur High School, V.N College, N.C College, Biraja

Women’s College, Biraja Law College, B.S.College, Sukinda College

and A.P.College and also further upcoming eductional institutions

(Loyola, Zee Litera etc.)


5-1

5 - PLANNING BRIEF

PLANNING CONCEPT

The project would be sited in Kalinganagar, Odisha. TSK has

already commissioned the Phase-1 of the integrated steel plant at

Kalinganagar and the proposed expansion project would be carried out in

the existing premises of TSK. The present infrastructure facilities include

a township.

The major industries in the study area are Neelachal Ispat Nigam

Ltd., Jindal Stainless Steel Ltd., Mid East Integrated Steel Ltd., Visa

Industries Ltd., Orion Ispat Ltd., etc.

POPULATION PROJECTION

The study area of the proposed expansion project comprises of

fourteen (14) villages. The total population of 14 villages as per 2001 &

2011 Census data was 20,659 and 24,606 respectively. The decadal

growth is 9.56%. The population projection of the study area for the year

2016 is estimated at around 26,960.

LAND USE PLANNING

The total area for steel plant provided by Govt. of Odisha as per the

MoU is around 3,472 acre, of which 3,089 acre is available for the steel

plant. This area is adequate to accommodate the expansion. The

following units would be located inside the plant boundary:

i) Raw material yard ii) Sinter plant iii) Blast Furnace iv) SMS (Steel Melt Shop) with Casters v) Oxygen Plant

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 5 - Planning Brief (cont’d)

5-2

vi) Water Facilities vii) Coke Oven viii) Pellet plant ix) Rolling Mills x) Power Distribution System xi) Water reservoir The total greenbelt, comprising of about 33% of total plant area of

about 1,020 acres, would be reserved in the layout. The layout would

also house canteen, administrative buildings, workshop, railway tracks,

stores, in-plant roads, etc.

ASSESSMENT OF INFRASTRUCTURE AVAILABILITY

Required infrastucture for the TSK plant like Rail connectivity,

Power & Water, Road are analysed and found to be meeting the plant

requirements except adjacent NH & SH widening, which is also in the

process of implementation.


6-1

6 - PROPOSED INFRASTRUCTURE

INDUSTRIAL AREA

The total plant area is about 3,000 acre, within the boundary of

which the proposed expansion project would take place. The process

units, water reservoir, solid waste processing & storage area for the

existing facilities as well as the proposed would be housed within this

area.

RESIDENTIAL AREA

TSK proposed to provide the residential requirement for essential

staffing of the steel plant in the North-East Corner of the lease area. The

residential complex will accommodate about 1000 families in about

50 acres area. The EC for the same is already obtained.

GREENBELT

It is obligatory to develop dense greenbelt area in proposed project

plant as per the Regulations. Green belt is proposed to develop in approx

33% of the total area. This would not only prevent the fugitive dust

emissions but also improve the peripheral appearance of the plant from

aesthetics point of view. Unpaved areas, if any, within the plant

boundary would be provided with grass / tree cover.

Following are the proposed species of trees which may be planned to

be planted as greenbelt:

i) Sal ii) Asan iii) Mahua iv) Palash v) Bamboo vi) Jamun vii) Amaltas viii) Bahera

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 6 - Proposed Infrastructure (cont’d)

6-2

PROPOSED SOCIAL INFRASTRUCTURE

The expansion project entails provision of the following facilities in

the Study Area:

i) Plantations in and around the Study Area

ii) Support and augmentation to existing sanitation and medical facilities amongst the surrounding communities

iii) Develop vocational and employability enhancement training

(computer based functional training) emphasizing specially on tribal women and youth groups

iv) Development of special educational package for tribal children v) Development of programmes and marketing mechanisms

promoting tribal art and culture

CONNECTIVITY

The site is bounded by the Daitari-Paradip expressway, also

designated as NH-5A, on the west and SH-20 on the northern side which

connects the plant site to J. K. Road. The expressway is connected to

NH-5 at Chandikhol. The site is also well connected by roads, including

National highways, to Bhubaneshwar/Cuttack and Paradip Port.

The plant site is located north-west of Jakhapura railway station on

Howrah-Chennai main line. Daitari-Jakhapura railway line runs on the

eastern periphery of the Kalinganagar Industrial Complex area. The

nearest international airport is at Bhubaneshwar, about 100 km from

site. Paradeep port is about 120 km and Dhamra Port is 140 km from

the plant site. Proximity of seaports is one of the distinct advantages for

the proposed expansion of the steel plant.


6-3

DRINKING WATER MANAGEMENT & SEWAGE SYSTEM

The drinking water system would cater to the water requirements of

(i) plant personnel for drinking and sanitary purposes, (ii) central and

area laboratories, (iii) canteen and (iv) other miscellaneous users in the

plant. Necessary treatment facility shall be considered to generate

potable grade water from make-up water. A 180 cum overhead tank is

envisaged to meet the drinking water requirements of the plant.

The faecal sewerage network of the plant would receive effluent from

the administrative building complex, canteens, and toilets of various

shops, office buildings, laboratories, etc. located in different areas of the

plant. The sewage water received from the above areas would be fed to a

sewage treatment plant.

SOLID WASTE MANAGEMENT

There would be numerous solid by-products like BF, steelmaking

slags, mill scales, mill sludge, caster and mill scrap, refractory debris,

flue dusts etc. generated from the proposed steel plant. BF slag would

be granulated and sold off to cement manufacturers and construction

industry. The iron scrap generated from the caster lines would be

recycled to LD. Mill scales, flue dusts and part of the LD slag would be

utilized in sinter plant after recovery of the metallic portion in slag. The

balance LD slag would require processing, after which it would be used

for applications such as railway ballast, construction aggregate, etc.

Other solid wastes will be disposed off in environment friendly manner.


6-4

POWER REQUIREMENT & SUPPLY/SOURCE

The estimated power requirements of various plant units including

CRM as well as utilities and auxiliary facilities for the project are

indicated below:

Annual energy consumption for steel plant 106 kWh .. 5,000

15-min maximum demand, MW .. 675

15-min maximum demand considering 0.9 pf MVA .. 750

The sources of power for the steel plant as envisaged are as follows:

iii) State Grid power supply system at 400 kV.

iv) Captive power Plant mainly based on surplus By-Product Gas. ii) TRT (Top Gas recovery from Blast Furnace) iii) CDQ (Waste Heat from Coke Dry Quenching) The power would be received at 400 kV from State Grid and the

same would be stepped down to 220 kV at Bulk Power Receiving Station

(BPRS).


7-1

7 - REHABILITATION & RESETTLEMENT

The proposed expansion project does not require additional land

and would be housed within the available plant area. Hence, there would

not be displacement of any human settlement. Hence there are no issues

relating to rehabilitation and resettlement.


8-1

8 - IMPLEMENTATION SCHEDULE & COST ESTIMATE

IMPLEMENTATION SCHEDULE

The preliminary overall implementation schedule for 8 MTPA crude

steel production with commissioning of various plant facilities of the

project is shown in the form of a bar chart in Fig.8-1 which is enclosed

with the Report.

It is envisaged that the project would be completed within a period

of 60 months from “Go-Ahead date”. It is considered that construction

work at site for various plant facilities of the project would commence

after completion of major engineering works.

The schedule has been developed based on the estimated capacity of

various plant facilities and excluded the plant facilities which were

commissioned in Phase-I of the project.

CAPITAL COST ESTIMATE

The order-of-magnitude capital cost comprising as erected

mechanical and electrical equipment including related civil and

structural steelwork and cost towards design, engineering and

consultancy and administration during construction is presented in this

section. Provision has also been made for contingency for arriving at the

capital cost.

The estimate is based on information available with CONSULTING

ENGINEERS for similar facilities. Applicable taxes and duties have been

considered in all of the estimated costs. The capital cost estimate may

undergo changes based on various locational aspects at the site,

finalized plant configuration and plant layout.

TATA STEEL KALINGANAGAR 8.0 MTPA CRUDE STEEL PRODUCTION PRE-FEASIBILITY REPORT 8 - Implementation schedule & Cost Estimate (cont’d)

8-2

The breakdown of order-of-magnitude capital cost is indicated below

for facilities within the plant boundary.

Sl. No. Item

Amount, Rs Crores

1 Plant and equipment (as erected)

including civil and structural work

19,075

2 Design, engineering and administration during construction

853

3 Contingency 1,072

Total 21,000

The costs towards Land, Infrastructure facilities, margin money for

working capital, preliminary and pre-operative expenses and interest

during construction have not been considered in the above capital cost.

It is seen from the table above that the order-of- magnitude cost of the

plant would be about Rs 21,000 crore.

1

TSL –KPO – 8 MTPA CRUDE STEEL- IMPLEMENTATION SCHEDULE FOR PFR

PO TO MAIN PACKAGE/MAIN PROCESS SUPPLIER

COMPLETION OF MAJOR ENGINEERING

COMPLETION OF MAJOR EQUIPMENT DELIVERY

COMPLETION OF CONS. WORK & COLD TRIAL

READINESS OF PRIORITY RMHSPOWER , WATER & UTILITIES

COMMISSIONING OF UNITS

Note:- (I) The above schedule does not include units already completed in Phase-I job(II) It has been considered that after completion of major Engineering Work Site Work will commence

demi_7088

Rectangle

demi_7088

Text Box

Fig. 8-1


9-1

9 - ANALYSIS OF PROPOSAL

FINANCIAL BENEFITS OF THE PROJECT

The financial benefits accrued from the project would not only

profit the owners but also strengthen the economy of the state due to

earning from taxes and duties from the Plant.

SOCIAL BENEFITS

The Corporate Social Responsibility & Accountability Policy and

vision of the Project Proponent (PP) aims to improve the Human

Development Index through focus on Education, Livelihood & Health.

The PP has established benchmark with regard to its social

responsibility towards the community and has undertaken extensive

range of initiatives in the sphere of (i) livelihood & employability (ii)

education (iii) health (iv) local infrastructure development (vi) ethnicity.

The augmentation and extension of the above mentioned initiatives

would extend to the local people of the study area. The focus is aimed at

the local scheduled tribe and schedule caste groups.

Additionally the proposed expansion project with increased

investment would augment the above mentioned activities and will

promote:

i) Improvement in the socio-economic status of the region by generation of direct and indirect employment opportunities

ii) Development of ancillary small and medium industries, trade &

commercial establishments and local entrepreneurship

THE CAPACITY EXPANSION OF INTEGRATED IRON & STEEL...

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