PRE-FEASIBILITY REPORT FOR PROPOSED EXPANSION OF

INTEGRATED STEEL PLANT

AT , Dist Burdwan,

SEPTEMBER 2018

SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 2 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

DISCLAIMER

This Pre-Feasibility Report (hereinafter referred to as “PFR” or “The Report”) contains proprietary and confidential information of M/s Shyam Sel & Power Limited (hereinafter referred to as “SSPL” or “The Company”). This Report is prepared by the Company on the basis of internal available information and information provided by the technical team for the purpose of obtaining Environmental Clearance from Central Government, Ministry of Environment, Forests & Climate Change (MoEF&CC).

The information contained in this PFR is selective and contains information to the extent required for obtaining EC from MoEF&CC.

This Report is furnished on strictly confidential basis. Neither this Report, nor the information contained herein, may be reproduced or be passed to any person or used for any purpose other than as stated above.

By accepting a copy of this Report, the recipient accepts the terms of this disclaimer, which forms an integral part of this Report.

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 3 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

TABLE OF CONTENTS 1 EXECUTIVE SUMMARY ...... 4

2 INTRODUCTION OF THE PROJECT ...... 12

3 PROJECT DESCRIPTION ...... 18

4 SITE ANALYSIS ...... 61

5 PLANNING BRIEF ...... 66

6 PROPOSED INFRASTRUCTURE ...... 68

7 REHABILIATION AND RESETTLEMENT PLAN ...... 75

8 PROJECT SCHEDULE & COST ESTIMATES ...... 76

9 ANALYSIS OF PROPOSAL ...... 78

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 4 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

1 Executive Summary

i) Name of the Company M/s. SHYAM SEL & POWER LIMITED CIN: U27109WB1991PLC052962 PAN: AAECS9421J ii) Rating “A+” (stable) for Long Term facilities and “A1+” for short term facilities by CARE dated 27.02.2018 iii) Registered Office S.S. Chambers, 5, C.R. Avenue, Kolkata - 700 072. iv) Factory 1. Jamuria, Dist Burdwan, West Bengal 2. Ranigunj, Dist-Burdwan West Bengal v) Date of Incorporation 5th September, 1991 vi) Constitution Public Limited Company (closely held) vii) Directors Details Name Designation Mr. Brij Bhushan Agarwal Managing Director Mr. Sanjay Kumar Agarwal Director Mr. Bajrang Lal Agarwal Whole Time Director Mr. V.K Nageswara Rao Majji Director Ms. Kiran Vimal Agarwal Director Mr. Yudhvir Singh Jain Addl Director Mr. Ajay Choudhury Addl Director Mr. Bikram Munka Addl Director Mr. Sanjeev Kr. Sachan Addl Director

viii) Activity Manufacturing of iron and steel products

Pre-feasibility Report PROJECT SCENARIO

Proposed Item for which TOR EC CTO Balance Item Expected Date of Completion Ultimate EC Required required Not Likely to As per Capacity As per EC be SN Unit Facility EC As per As per Likely to Amendment As per CTO of As per Complet Old from CTO of State Date be New Project Existing New Total dated 19th June Central EC Central EC ed Completed SEIAA, State EC EC Complet 2018 (To be WB ed Surrende red) Sinter 0.4 1 Sinter 0.4 MTPA - 0.85 MTPA 0.85 MTPA 0.85 MTPA Plant ------MTPA - - Capacity enhancement from existing Pellet 0.48 - 0.48 MTPA ------0.48 MTPA 0.48 MTPA to 0.12 MTPA Plant 1 MTPA 0.6 MTPA 0.60 MTPA (through 2 Pellet modification) 1.8 MTPA Replacement Pellet of existing 0.12 0.12 - 0.12 MTPA ------0.12 MTPA 0.48 MTPA Plant 2 MTPA by 0.6 MTPA MTPA Pellet ------0.6 MTPA - 0.6 MTPA Plant 3 - 1x450 M3 Blast Blast 1x450 (0.6 MTPA 3 Furnac 1x450M3 - 1x450 M3 1x450 M3 Furnace M3 Hot Metal / e ------Pig Iron) 2x100 2x100 TPD TPD 3x300 TPD Sponge 2X100 TPD 2X100 TPD 2x100 TPD 3x300 4x350 TPD 2X90 2X90 1x300 1X300 2x90 TPD 4 DRI Iron + + - 19.3.2019 - 3X300TPD 4x350 TPD TPD (0.462 TPD TPA TPD TPD 4x350 TPD Division 3x300 TPD 2X300 TPD 2X90TPD 2x90 TPD MTPA) (0.4248 (0.89 MTPA MTPA) Sponge Iron) SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 6 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

PROJECT SCENARIO (CONTD..)

Proposed Item for which EC CTO Balance Item Expected Date Of Completion Ultimate EC Required TOR required

Not Likely to SN Unit Facility As per Capacity As per EC be EC As per As per Likely to Amendment As per CTO of As per Complet Old from CTO of State Date be New Project Existing New Total dated 19th Central EC Central EC ed Completed SEIAA, State EC EC Complet June 2018 (To be WB ed Surrende red)

Ferro Ferro 0.019 0.06208 0.019 0.06208 0.019 0.1 MTPA 5 Alloy 0.1 MTPA 0.03792 MTPA - 19.03.2019 0.1 MTPA - 0.1 MTPA - Alloys MTPA MTPA MTPA MTPA MTPA Plant

2X18 T 5X18 T 12X18 T 2X18 T + 2X15 T 2X15 T 5X18 T + + 2X15 Induction + 2X15 T + 4X5 T 4X18T 6X18 T 2X18 T + 2X18 T 3X18T 19.03.2019 5X18 T 4 T + 8X8 T + 4X5 T Furnace + 4X5 T + 5X18 T 4X5 T 8X8 T (0.5082 + 8X8 T 6 SMS + 5X18 T (0.6066 MTPA) (1.11 MTPA) MTPA) Electric 1 x 45 T 1 x 45 T Arc 1 x 45 T - 1 x 45 T 1 x 45 T (0.4 MTPA) (0.4 MTPA) furnace ------

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 7 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

PROJECT SCENARIO (CONTD..)

Proposed Item for which TOR EC CTO Balance Item Expected Date Of Completion Ultimate EC Required required

Not Likely to SN Unit Facility As per Capacity As per EC be EC As per As per Likely to Amendment As per CTO of As per Complet Old from CTO of State Date be New Project Existing New Total dated 19th Central EC Central EC ed Completed SEIAA, State EC EC Complet June 2018 (To be WB ed Surrende red) Capacity enhancement from Long 0.048 0.048 Existing 0.48 MTPA 0.048 0.102 Products ------MTPA MTPA to 0.15 MTPA MTPA MTPA Mill - 1 (through modification) Capacity enhancement from Long 0.3 MTPA - Existing 0.055008 0.055008 0.094992 Product ------MTPA to 0.15 MTPA MTPA Mill - 2 Rolling MTPA 1.0 7 MILL 0.055008 0.055008 (through MTPA MTPA MTPA modification) Capacity Long 0.196992 0.196992 enhancement from 0.196992 0.003008 Product - - - 19.03.2019 - MTPA MTPA Existing 0.196992 MTPA MTPA Mill - 3 0.19699 2 MTPA MTPA to 0.2 MTPA Long Product - - 0.3 0.3 Mill - 4 ------MTPA MTPA Long Product - - 0.2 0.2 Mill - 5 ------MTPA MTPA Coke Coke 0.25 0.3 8 Oven 0.25 MTPA - 0.3 MTPA 0.3 MTPA Oven MTPA MTPA Plant ------Ductile Ductile 0.1 0.1 0.1 MTPA - 0.1 MTPA 0.1 MTPA 9 Iron Iron ------MTPA - - MTPA

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PROJECT SCENARIO (CONTD..)

Proposed Item for which EC CTO Balance Item Expected Date Of Completion Ultimate EC Required TOR required

Not Likely to SN Unit Facility As per Capacity As per EC be EC As per As per Likely to Amendment As per CTO of As per Complet Old from CTO of State Date be New Project Existing New Total dated 19th Central EC Central EC ed Completed SEIAA, State EC EC Complet June 2018 (To be WB ed Surrende red) ERW ERW 0.1 10 Tubes 0.1 MTPA ------Tubes MTPA Plant 250 MW ( 1X18MW - WHRB 1X30 MW - 18 MW 18 MW 1X43MW - 93MW - WHRB WHRB WHRB CPP CFBC 1X18 MW WHRB WHRB 4X30 MW - 19-03- 30 MW CFBC- 43 MW 45 MW 43MW 45 MW 11 CPP (WHRB + 1X30MW - - + - - 43MW – CFBC 2019 (WHRB) 159 MW CFBC (WHRB ) CFBC (WHRB) CFBC) WHRB 1X43 MW CFBC CFBC 1x39MW - 30 MW 30 MW 4x30 MW - (136 MW) CFBC WHRB WHRB CFBC 1X39MW - CFBC) Cement 12 Grinding Cement ------1.2MTPA - 1.2MTPA 1.2MTPA Unit Producer Producer 36000 36000 36000 13 ------Gas Plant Gas Nm3/Hour Nm3/Hour Nm3/Hour

Pre-feasibility Report From the above table, effective units for which new Terms of Reference (TOR) will be required is as under:

Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required 0.85 MTPA 1 Sinter Sinter Plant - 0.85 MTPA (Sinter) Capacity enhancement from existing 0.48 MTPA to 0.6 Pellet Plant 1 0.48 MTPA MTPA 1.8 MTPA (through modification) 2 Pellet Plant (Iron Ore Replacement of existing 0.12 Pellet Plant 2 0.12 MTPA Pellets) MTPA by 0.6 MTPA Pellet Plant 3 - New 0.6 MTPA 0.6 MTPA Blast 1X450 M3 (Hot Metal / 3 Blast Furnace Furnace (0.6 MTPA) Pig Iron) - 2x100 TPD 3x300TPD 4x350TPD 0.89 MTPA 4 DRI Plant Sponge Iron Plant 2x90TPD (0.462 MTPA) (Sponge (0.4248 MTPA) Iron) Ferro 5 Ferro Alloy Plant 0.1 MTPA - Alloys 0.1 MTPA

2x18 T 12X18 T 5x18 T 2x15 T 2X15 T 8x8 T 4x5 T 4X5 T Induction Furnace 0.5 MTPA 5x18 T 8X8 T 6 SMS

(0.5082 MTPA) (0.6066 MTPA) (1.11 MTPA)

1 x 45 T 1 x 45 T Electric Arc furnace - (0.4 MTPA) (0.4 MTPA) SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 10 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required Capacity enhancement from

0.048 Existing 0.48 MTPA to 0.15 Long Products Mill MTPA MTPA - 1 (through modification) Capacity enhancement from Long Product Mill - Existing 0.055008 MTPA to 2 0.055008 0.15 MTPA 1 MTPA Rolling 7 MTPA (through modification) (Long MILL Capacity enhancement from Long Product Mill - 0.196992 Products) Existing 0.196992 MTPA to 3 MTPA 0.2 MTPA Long Product Mill - 0.3 4 - MTPA Long Product Mill - 0.2 5 - MTPA 0.3 MTPA 8 Coke Oven Coke Oven Plant 0.3 MTPA - (Coke) Ductile Iron 0.1 MTPA 9 DI Pipe 0.1 MTPA Pipe Plant - (DI Pipe)

93 MW- WHRB Captive CPP (WHRB and 48 MW-WHRB, 45 MW 43 MW- 10 Power CFBC) 43 MW-CFBC, (WHRB) CFBC Plant (136 MW Electricity)

Cement 1.2 MTPA Cement Grinding 11 Grinding 1.2 MTPA (Cement) Unit Unit - Producer Producer Gas 36000 36000 12 Gas Plant Plant - Nm3/Hour Nm3/Hour

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 11 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

Cost of the above project: Rs in Crs Grand Sl. Cost of the Project Total 1 Land 99.90 2 Cost of Civil Construction 383.80 3 Plant and Machinery 849.44 4 Miscellaneous Fixed Assets 112.55 Total Hard Cost (A) 1445.69 5 Preliminary & Preoperative expenses 53.83 6 Contingencies (5% of hard cost) 67.29 7 Margin Money for Working Capital 94.21 Total Soft Cost (B) 215.33 Grand Total Cost (A)+(B) 1661.02

Detailed Project Cost has been stated in “Project Schedule & Cost Estimates”

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2 Introduction of the Project

2.1 IMPORTANCE OF THE PROJECT TO THE COUNTRY AND REGION:

TMT rod and bar products are normally used in constructional/structural work due to its workability and Rolled products like angles and channels find versatile use in industries and erection work. Ductile Iron (DI) Pipes’ good mechanical properties, in addition to high durability and strength, make them ideal for high-pressure applications. Ductile Iron Pipes are used extensively in systems transporting potable water, industrial water, irrigation water and pressure sewage. Cement is used in construction of house, bridges and various infrastructure. Other products are backward integration to the end consumer products.

All the products proposed to be manufactured have high market demand. Iron & Steel is a basic commodity for all industrial activity and its consumption marks industrial prosperity. The Iron & steel industry has tremendous forward and backward linkages in terms of material flow, income and employment generation. Iron & Steel is a core industry and thus its demand is strongly linked to the overall economic activity of the nation. Given the inherent long- term potential of the Indian economy and its cyclical nature, the long-term prospects of the steel industry are fairly comfortable. The demand and production has been growing at a healthy rate for the last few years and the forecast for the next decade and half is also very promising.

As reported by Indian Brand Equity Foundation, ’s finished steel consumption grew at a CAGR of 5.69 percent during FY08-FY18 to reach 90.68 million tonnes (MT). 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 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.

Similarly, for cement industry also, the housing and real estate sector is the biggest demand driver of cement, accounting for about 65 percent of the total consumption in India. The other major consumers of cement include public infrastructure at 20 percent and industrial development at 15 per cent.

India’s total cement production capacity is nearly 455 million tonnes, as of 2017-18. Cement consumption is expected to grow by 4.5 per cent in FY19

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supported by pick-up in the housing segment and higher infrastructure spending. The industry is currently producing 280 MT for meetings its domestic demand and 5 MT for exports requirement.

2.2 DEMAND SUPPLY GAP:

On a conservative estimate, the steel demand in India is expected to touch around 150 MTPA by 2020. Steel supply is, however, expected to reach only around 145 MTPA by same time.

World Steel Association has projected Indian steel demand to grow by 5.7% in 2017 while globally steel demand has been projected to grow by 0.5% in 2017

The National Steel Policy 2017 has been formulated keeping in mind the rapid developments in the domestic steel industry (both on the supply and demand sides) as well as the stable growth of the Indian economy. The National Steel Policy 2017 aims to achieve 300 million tonne of steel-making capacity which will require an additional investment of Rs 10 lakh crore by 2030-31 setting a target of 160 kilograms per capita steel consumption by 2030. In comparison, per capita finished steel consumption in 2015 is placed at 208 kg for world, 489 kg for China and only 61 kg for India.

As a facilitator, the Government monitors the steel market conditions and adopts fiscal and other policy measures based on its assessment. In view of rising imports, the Government had earlier raised import duty on most steel items twice, each time by 2.5% and imposed a gamut of measures including anti-dumping and safeguard duties on a host of applicable iron and steel items.

The liberalization of industrial policy and other initiatives taken by the Government have given a definite impetus for entry, participation and growth of the private sector in the steel industry. This had led to expansion, forward integration, diversification and modernization of existing units.

The Cabinet also cleared another policy which will mandate giving preference to iron and steel products that are manufactured in India for all government tenders. At least 15 percent value has to be added to the notified steel product in India to qualify as domestic steel.

There is a distinct relation between steel consumption and the GDP growth rate world over. In India, GDP is expected to remain a figure of above 7% in Current and Next Financial Years while it is expected to touch thereafter Double Digit

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Figures of 11-12%. This will be possible with National Focus on Large Infrastructure Development with huge Investment and India is bound to witness sustained growth in the steel requirement in the years to come. India will emerge as the Second Largest Producer of Crude Steel in near future.

It is foreseen that there will be sufficient demand in local/Indian Market of Steel, TMT Bars and Rods and cement for constructional needs, Silico Manganese for Steel Making and others.

M/s SSPL has drawn up a growth plan with the objective of increasing its market share in Indian steel industry. Keeping all these in mind, the Company has planned expansion, forward integration and diversification of the existing facilities in an effective environment friendly way.

2.3 IMPORT VS. INDIGENOUS PRODUCTION:

On liberalization of the Indian steel sector with effect from 24.05.1992, iron and steel industry was included in the list of High priority industries for automatic approval for foreign equity investment up to 51%. This limit has since been increased to 100%. The import regime for iron and steel has undergone major liberalization moving gradually from a controlled import by way of import licensing, foreign exchange release, canalization and high import tariffs to total freeing of iron and steel imports from licensing, canalization and lowering of import duty levels. Export of iron and steel items has also been freely allowed. Import duty on capital goods was reduced from 55% to 25%. Duties on raw materials for steel production were reduced. These measures reduced the capital costs and production costs of steel plants.

Imports: • Iron & steel are freely importable as per the extant policy. • Data on import of total finished steel (alloy + non alloy) is given below for last five years:

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Exports: • Iron & steel are freely exportable. • Data on export of total finished steel (alloy + non alloy) is given below for last five years:

2.4 EXPORT POSSIBILITY: Above figures are indicative of constant increase of steel export from India and likely to increase further in coming years. The New Industrial policy opened up the Indian iron and steel industry for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign direct investment are now freely permitted up to certain limits under an automatic route. Ministry of Steel plays the role of a facilitator, providing broad directions and assistance to new and existing steel plants, in the liberalized scenario.

The Company is already exporting to various countries such as: • Korea • Indonesia • Japan • Luxembourg • China • Nepal

2.5 DOMESTIC/ EXPORT MARKET: Shyam group has a wide network of Stockiest & Distributors in the country supported by Branch Offices in major cities. With the confidence gained by serving discerning domestic customers, the group has embarked into large scale exports of steel and ferroalloys to sophisticated markets in Europe like Italy, The Netherlands, Poland etc as well as in Taiwan, Thailand and other

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 16 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

South-East Asian countries. Quality and commitment have been the key performing factors in establishing in the global market.

Recognizing the performance in the global markets; Engineering Export Promotional Council of India bestowed various awards in recognition of export performance.

A full-fledged office has been set up in Harare, Zimbabwe, besides representatives working in Thailand and the Middle East for business development and identifying prospects of natural resources.

Major customers are as under: Domestic Customers Overseas Customers Ferro Jindal Stainless Limited Posco (Korea) JSW Limited Posco (Indonesia) Jindal steel and Power Limited Mitsuy (Japan) Steel Authority Of India Lux Alloy (Luxembourg) Tsingshan Group (China) Pellet Toyota Toshoe (Japan) H.K. Enterprises Jagdamba Steel (Nepal) Singhal Enterprises Pvt. Ltd. Jagdamba Enterprises (Nepal) Goenka Steels (Nepal) Sponge Iron Laxmi Steels (Nepal) Bhagyalaxmi Rolling Mill Pvt . Ltd. Panchkanya Steels (Nepal) Shakti Traders Jindal Steel & Power Limited

Billet Gajkeshri Steels Sudha Steels K.L.Steels

Structurals The Dhamra Port Company Limited Steel Authority Of India

Pre-feasibility Report SHYAM SEL & Proposed Expansion of Existing Integrated Steel Plant at Village Dhasna, PAGE - 17 POWER LTD. Jamuria, P.O. Bahadurpur, District Burdwan, West Bengal

2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT:

The project will create the direct employment of 2000 People during the construction phase and around 7000 People will be involved during operational period. Skilled and unskilled people on daily average will be employed. SSPL will give preference to the local peoples during construction and operation phase of the project depending upon the skill, job requirement and capability. Several others around 500 indirect employment opportunities will be created in the surrounding areas by transport, business, vehicle derivers and attendants, workshops, grocery and retail, medical etc.

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3 Project Description

3.1 Type of Project including interlinked and interdependent projects, if any:

Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required 0.85 MTPA 1 Sinter Sinter Plant - 0.85 MTPA (Sinter) Capacity enhancement from existing 0.48 MTPA to 0.6 Pellet Plant 1 0.48 MTPA MTPA 1.8 MTPA (through modification) 2 Pellet Plant (Iron Ore Replacement of existing 0.12 Pellet Plant 2 0.12 MTPA Pellets) MTPA by 0.6 MTPA Pellet Plant 3 - New 0.6 MTPA 0.6 MTPA Blast 1X450 M3 (Hot Metal / 3 Blast Furnace Furnace (0.6 MTPA) Pig Iron) - 2x100 TPD 3x300TPD 4x350TPD 0.89 MTPA 4 DRI Plant Sponge Iron Plant 2x90TPD (0.462 MTPA) (Sponge (0.4248 MTPA) Iron) Ferro 5 Ferro Alloy Plant 0.1 MTPA - Alloys 0.1 MTPA

2x18 T 12X18 T 5x18 T 2x15 T 2X15 T 8x8 T 4x5 T 4X5 T Induction Furnace 0.5 MTPA 5x18 T 8X8 T 6 SMS

(0.5082 MTPA) (0.6066 MTPA) (1.11 MTPA)

1 x 45 T 1 x 45 T Electric Arc furnace - (0.4 MTPA) (0.4 MTPA)

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Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required Capacity enhancement from

0.048 Existing 0.48 MTPA to 0.15 Long Products Mill MTPA MTPA - 1 (through modification) Capacity enhancement from Long Product Mill - Existing 0.055008 MTPA to 2 0.055008 0.15 MTPA 1 MTPA Rolling 7 MTPA (through modification) (Long MILL Capacity enhancement from Long Product Mill - 0.196992 Products) Existing 0.196992 MTPA to 3 MTPA 0.2 MTPA Long Product Mill - 0.3 4 - MTPA Long Product Mill - 0.2 5 - MTPA 0.3 MTPA 8 Coke Oven Coke Oven Plant 0.3 MTPA - (Coke) Ductile Iron 0.1 MTPA 9 DI Pipe 0.1 MTPA Pipe Plant - (DI Pipe)

93 MW- WHRB Captive CPP (WHRB and 48 MW-WHRB, 45 MW 43 MW- 10 Power CFBC) 43 MW-CFBC, (WHRB) CFBC Plant (136 MW Electricity)

Cement 1.2 MTPA Cement Grinding 11 Grinding 1.2 MTPA (Cement) Unit Unit - Producer Producer Gas 36000 36000 12 Gas Plant Plant - Nm3/Hour Nm3/Hour

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3.2 Location (map showing general location, specific location and project boundary & project site layout) with coordinates.

The existing Steel Plant of M/s SSPL is situated at village Dhasna, P.O. Bahadurpur, P.S. Jamuria, District Burdwan of West Bengal. Its geo-graphical coordinates are Latitude 23°41'37.04"N and Longitude 87°7'13.55"E with Mean Sea Level 350 feet or 106.68 meters.

The project site already has proper road linkage for transport of materials and equipment. Railway Station is about 10.0 km from the project site.

The NH-2 road is passing about 6.0 km away in the South direction and the nearest distance of NH-60 in the SE direction is about 2.6 km with respect to the project site. The nearest Airport is Netaji Subhas Chandra Bose International (NSCBI) Airport, Kolkata, which is about 178 km from the project site. Kolkata city is located at a distance of about 178 km from the project site. Distance from to the project site is about 175 km. Kolkata Port is around 175 km away and Haldia Port is 209 km away from the Project Site.

The nearest distance of in the South-western side is about 11.0 km and Ajoy river is about 7.0 km in North-eastern side w.r.t the project site. Important Towns like Raniganj Town is about 9.0 km in South direction, Town is about 14.0 km in West direction, Town is about 29.0 km in South-east direction. Jharkhand State Boarder is about 30.0 km in West direction from the project site.

The location map of the project site is presented in Figure- 1A.

The Plant Layout is presented in Figure-1B.

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Project Site: Village: Dhasna, P.O: Bahadurpur, P.S. - Jamuria, District – Burdwan, West Bengal.

Site Co-ordinate: Latitude 23°41'37.04"N Longitude 87°7'13.55"E (Mean Sea Level 350 feet) FIGURE -1A

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FIGURE 1B : PLANT LAYOUT

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3.3 Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted.

The proposed addition is on the existing land at Jamuria in Burdwan district of West Bengal. The company already has sufficient land ad-measuring 649 acres of land at the proposed location. It is only 35 kms from Durgapur city, giving access to all modern amenities and offers us a significant competitive edge through this strategic location. This belt has a supply of manpower and also key raw materials, such as Dolomite, Quartzite, Ferro alloys and additives, thereby reducing transportation and procurement costs.

The company also have its own private railway siding of 1.44 Kms, which reduces the logistics cost.

The plant is closely connected with railways and highway roads. The unit is located about 8 kms from Grand Trunk Road which provides easy and good transport connectivity. The unit’s power requirements, other than captive power plant, will be fulfilled by Damodar Valley Corporation (DVC) from 12 MVA line from Icra substation located at a distance of about 2.5 km from the plant. The plant’s water requirement is met from bore well. Further, the company also has permission to draw water from nearby which is approximately 8 Kms from the site. The site is well connected with all type of transportation.

Locational Advantages The proposed project is coming up on existing site of the Company. Site selection for setting up of proposed project is governed by: (i) Proximity to sources of raw material for production i.e. Jamuria being a centre for raw coal, (ii) Reasonable proximity to end users i.e. Asansol, Ranigunge, Durgapur and (iii) Availability of necessary infrastructure like Railway, Roadways, Power, Manpower and Water.

• Requisite skilled and unskilled labour force is available in the nearby area (in and around area of Burdwan, Asansol & Durgapur).

• Proximity to the main raw materials required in the project as Jamuria is itself a heart of coal mining. Proximity to the source of the principal raw material will result in significant reduction in transport costs.

• It may be mentioned that Burdwan, Asansol and Durgapur has emerged as one of the fast growing region for iron & steel products.

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• Company also has its manufacturing facilities in Raniganj which is only 10 Kms from Jamuria site.

3.4 Size or magnitude of operations.

M/s SSPL is planning to set up proposed units in the existing plant premises as mentioned below,

Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required 0.85 MTPA 1 Sinter Sinter Plant - 0.85 MTPA (Sinter) Capacity enhancement from existing 0.48 MTPA to 0.6 Pellet Plant 1 0.48 MTPA MTPA 1.8 MTPA (through modification) 2 Pellet Plant (Iron Ore Replacement of existing 0.12 Pellet Plant 2 0.12 MTPA Pellets) MTPA by 0.6 MTPA Pellet Plant 3 - New 0.6 MTPA 0.6 MTPA Blast 1X450 M3 (Hot Metal / 3 Blast Furnace Furnace (0.6 MTPA) Pig Iron) - 2x100 TPD 3x300TPD 4x350TPD 0.89 MTPA 4 DRI Plant Sponge Iron Plant 2x90TPD (0.462 MTPA) (Sponge (0.4248 MTPA) Iron) Ferro 5 Ferro Alloy Plant 0.1 MTPA - Alloys 0.1 MTPA

2x18 T 12X18 T 5x18 T 2x15 T 2X15 T 8x8 T 4x5 T 4X5 T Induction Furnace 0.5 MTPA 5x18 T 8X8 T 6 SMS

(0.5082 MTPA) (0.6066 MTPA) (1.11 MTPA)

1 x 45 T 1 x 45 T Electric Arc furnace - (0.4 MTPA) (0.4 MTPA)

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Proposed Item for which TOR required Sl. Division Plant Name Ultimate EC No. Old Completed New Project Required Capacity enhancement from

0.048 Existing 0.48 MTPA to 0.15 Long Products Mill MTPA MTPA - 1 (through modification) Capacity enhancement from Long Product Mill - Existing 0.055008 MTPA to 2 0.055008 0.15 MTPA 1 MTPA Rolling 7 MTPA (through modification) (Long MILL Capacity enhancement from Long Product Mill - 0.196992 Products) Existing 0.196992 MTPA to 3 MTPA 0.2 MTPA Long Product Mill - 0.3 4 - MTPA Long Product Mill - 0.2 5 - MTPA 0.3 MTPA 8 Coke Oven Coke Oven Plant 0.3 MTPA - (Coke) Ductile Iron 0.1 MTPA 9 DI Pipe 0.1 MTPA Pipe Plant - (DI Pipe)

93 MW- WHRB Captive CPP (WHRB and 48 MW-WHRB, 45 MW 43 MW- 10 Power CFBC) 43 MW-CFBC, (WHRB) CFBC Plant (136 MW Electricity)

Cement 1.2 MTPA Cement Grinding 11 Grinding 1.2 MTPA (Cement) Unit Unit - Producer Producer Gas 36000 36000 12 Gas Plant Plant - Nm3/Hour Nm3/Hour

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3.5 Project description with process details (a schematic diagram/ flow chart showing the project layout, components of the project etc.)

The detail manufacturing process of all the proposed project is as under:

3.5.1 MINI BLAST FURNACE

The blast furnace complex will comprise of 1x450 m3 mini blast furnaces along with its auxiliaries to produce hot metal / Pig iron. The blast furnace is envisaged to operate with sinter, iron ore lump, coke, coal dust and fluxes. The liquid slag will be granulated at slag granulation unit. The BF top gas will be cleaned in dust catcher and gas cleaning system, and distributed to the stoves, runner drying and other furnaces.

a. Stock house and charging system: The transportation of raw material from storage yard to the stock house will be done by belt conveyors. The raw material transported from storage yard will be distributed into the respective bunkers through shuttle conveyors envisaged at the top of the stock house bunkers. All materials, stored in different weigh hoppers will be charged sequentially into collecting conveyors which will discharge material into common charging conveyor which in turn will feed the material to the blast furnace top charging equipment.

b. Blast furnace proper: The blast furnace shall be of structural steel construction of free standing design and provided with four-post tower structure. The furnace shall be provided with under hearth water cooling system in close circuit.

c. Hot blast stoves: The hot blast stoves will be designed for a blast temperature of 1250° C with an operating level of 1200°C. The 3-stoves combination with cyclic operation is considered appropriate for start up and operation. Combustion air and combustion gas will be pre-heated by a heat recovery system using the waste gas from the stoves.

d. Cast house: The blast furnace will be provided with two cast houses with two tap holes in each cast house. The cast houses will be connected to each other.

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Figure – 2.0 : Process Flow Diagram of Mini Blast Furnace

3.5.2 SINTER PLANT

The sinter plant complex will consist of sinter machine along with associated services facilities. The plant capacity has been selected as 0.85 MTPA for charging sinter in blast furnace. The sinter plant complex will consist of the following units,

1. Storage and proportioning unit 2. Combined mixing and balling unit 3. Sintering and cooling unit 4. Waste gas unit 5. Main exhaust fan unit 6. Cold sinter screening unit 7. Plant dedusting unit

The above units will be interconnected by conveyor galleries and junction houses for conveying raw fix, finished sinter, and sinter return fines. All the iron bearing materials (iron ore fines, flue dust), 100% BF return fines, 80% of total requirement of limestone, 80% of total requirement of dolomite, 80% of total requirement of coke breeze are blended in the base blending yard. Blended mix and corrective additions of limestone (20% of total requirement), dolomite (20% of total requirement) and coke breeze (20% of total requirement) are received from the raw material blending yard to the

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sinter plant proportioning building. Burnt lime will be carried by lime tanker and fed to lime bin by pneumatic lime transportation system. A brief description of major facilities proposed for the sinter plant complex is given below.

Proportioning unit: Suitable capacity of storage and proportioning bins has been envisaged for the sinter plant. The bunkers for blended mix and return fines will have single outlet while bunkers for corrective additions of crushed limestone, crushed dolomite and crushed coke breeze will have twin outlets. All the bins will be suitably lined except return fines bin, which will be self lined. The blended mix, corrective additions and in-plant returns will be fed to the common collecting conveyor by electronic belt weigh feeders, whereas, lime will be fed to common collecting belt conveyor by loss in weigh feeder. Proportioned material from belt weigh feeders below respective proportioning bins shall be transported to a combined mixing and nodulizing drum by a common belt conveyor.

Combined mixing and nodulizing unit: Material from belt weigh feeders below respective proportioning bins will be transported to a combined mixing and nodulizing drum by a belt conveyor where the various raw materials will be moistened and mixed in drum mixer. Lime from lime bins will be discharged onto common collecting conveyor through lime dosing equipment. A fixed quantity of water of about 60% of requirement will be added in the mixing part and the rest variable quantity will be added in the nodulizing part depending on requirement. The raw mix discharged from mixing and nodulizing drum will be transported to sinter plant main building by a belt conveyor.

Sinter plant main building: The sinter plant main building will mainly consist of hearth layer and raw mix feeding units, ignition furnace, sinter machine, hot sinter breaker. The sintering machine will comprise charging and discharging sprockets, drive unit, spring loaded pallet cars with high chrome cast steel grate bars, rails, curved guides at charging and discharge ends, grate bar cleaning device, automatic lubrication system, provision for thermal expansion, wind boxes, wind main with dust hoppers and double cone dust valves, machine Spillage hoppers, sinter machine support structures. The hearth layer (15 - 25 mm) will be spread onto the sintering machine first, followed by sinter mix. The height of the sinter mix bed onto the machine will be 650 mm including 50 mm protective hearth layer height. The hearth layer is provided for the following reasons:

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• Prevent plugging of the passage between grate bars • Prevent the scaling and overheating of the grate bars • Prevent the adhesion of fused sinter to grate bars • Ensure uniform gas distribution through the sinter mix bed

The ignition furnace with post heat hood and pre-heating (before ignition furnace) will be installed just after the sinter mix drum feeder. The ignition furnace will have suitably located energy efficient type gas firing burner designed for 2000 kcal/Nm3 of mixed gas. Gas mixing station and gas boosting station will be located outside sinter plant battery limit approximately 250 to 350 deg C hot air for the combustion is supplied from waste heat recovery system of sinter cooler. Multicyclone will be provided at inlet of combustion air fan to supply clean hot air from discharge of cooler.

The hot air for combustion will have control by having intake in cold air. The ignition temperature will be 1200 – 1300oC RC Lot burners will be provided for start up and safety. Hot air from waste heat recovery system of sinter cooler will also be used for preheating of raw material before ignition furnace and post heat hood after ignition furnace. The recovered waste heat from cooler will be utilized for ignition, post ignition and preheating of raw-mix. For suction of air through sinter mix bed on the sintering machine two numbers of exhausters will be provided.

Circular sinter cooler will be used to cool the sinter to less than 100 deg C after it is discharged from hot sinter breaker at approximately 800 deg C up to (-) 150 mm size, so that it can be transported through conventional conveyor system. Forced draught fans will be provided to cool the sinter in sinter cooler. Deep bed dip rail circular cooler of adequate capacity will be provided to match the sinter machine production with all the associated facilities like cooler fans, heat recovery system etc. Retention time for the coolers will be of approx. 60 minutes.

Cooling of sinter is achieved by up-drafting ambient air through the bed of hot sinter to be cooled. The sinter after being cooled in the sinter cooler is transported to the screening house. In the screening house, sinter screening will be carried out in single deck screens arranged vertically in series. The screen house in sinter plant is a separate building in which all the vibrating screens will be located. These screens are arranged one above the other in order to facilitate successive screening of the gross sinter.

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The process flow of sinter plant is shown in Figure - 3.0.

Figure – 3.0 : Process flow of sinter plant

3.5.3 DRI PLANT

The direct reduction iron plant will be of conventional Rotary Kiln technology. The rated capacity of the kilns will be 4x350 TPD to produce sponge iron. The plant will be suitably designed for conveyor transportation as well as storing system for both iron oxide feed, DRI product as well as by product like product fines. The utilities system design will include distribution network for utilities like nitrogen, oxygen, water, electric power, etc.

The process converts lump iron ore into highly metallised, passivated iron product. The product is in the form of pellets/lumps and contains a variable and controlled percentage of carbon. This is an ideal feed material for quality steel making. The presence of Fe3C assures that the product is passivated i.e. non-pyrophoric even without briquetting and allows easy, safe handling and transport.

When the temperature reaches a value of about 500-600 deg C, the hematite (Fe2O3), in presence of CO, changes to magnetite (Fe3O4). When the burden reaches the lower zone of the furnace and comes in contact with hotter and richer gas, the magnetite is reduced to wurstite (FeO). The reduction of wurstite to metallic iron is the slowest stage of the whole reduction process. It requires high temperatures and gas with high reduction potential and these conditions are reached in the reducing gas injection zone. The overall reduction process is represented by the

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following reactions:

Fe2O3 + 3CO 2Fe + 3CO2

Oxide material handling: The iron oxide material i.e. lump iron ore (sized) will be collected and conveyed for screening in the oxide screening station and then sent to oxide day bins for storage.

The iron ore will be directly sent to the oxide storage bins. Two bins will be earmarked for pellet storage while one bin will store the iron ore lump. About two shifts storage capacity has been planned.

Figure – 4.0 : Process flow of DRI Plant

Power Generation from DRI Plant: (30 MW Generations) Waste gases generated from DRI (Sponge Iron) plant contain carbon monoxide and other volatile matter which after combusted releases significant heat. This heat contains significant calorific value (GCV of mixed fuel - about 2300 kcal/Nm3). This heat will be used to produce steam through Waste Heat Recovery Boilers. The high pressure steam will be used to run turbines and generate 30 MW electricity.

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3.5.4 Pellet Plant (1.8 MTPA) In the existing project, there are two pellet plants with 0.48 MTPA & 0.12 MTPA capacity. M/s SSPL has decided to enhance the capacity of one of the existing pellet plants i.e. the 1st plant capacity enhancement from 0.48 MTPA to 0.6 MTPA. Second Pellet Plant of 0.12 MTPA capacity will be replaced by 0.6 MTPA capacity pellet plant. In addition, one new pellet plant of 0.6 MTPA capacity is proposed. The details of the overall scenario with respect to the pellet plant configuration are mentioned below,

Division Plant Name Ultimate EC Old Completed New Project Required

Capacity enhancement from Pellet Plant 1 0.48 MTPA existing 0.48 MTPA to 0.6 MTPA (through modification) 1.8 MTPA Pellet Plant Replacement of existing 0.12 (Iron Ore Pellet Plant 2 0.12 MTPA MTPA by 0.6 MTPA Pellets) Pellet Plant 3 - New 0.6 MTPA

In pellet plant, the concentrated iron ore fines will be mixed with limestone, coke breeze and bentonite and grounded in a Grinding Unit. The grounded material is transported pneumatically to mixer.

The mixed material is conveyed to balling disc for making green balls, where water is added. The green balls are called pellets, which are screened to 9 -16 mm size in a double deck roller screen. Oversize and undersize material are returned to mixed material bins for reuse. The pellets are fed by conveyor to the travelling grate of indurating furnace for heat hardening. Mixed gas (blast furnace / coke oven gas) or producer gas is used as fuel to achieve temperature of 1300oC. Producer gas plant is also considered to supply the gaseous fuel requirement of pellet plant. Heat provides recrystallisation, bonding and imparts strength to the pellets. The indurated pellets are air-cooled using a fan. The cooled pellets are

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taken to stockpile by belt conveyors after separation of hearth and side layers in the hearth layer separation bin. The hearth and side layers are reused in the furnace.

Slurry receiving and filtration: The iron ore will be received by pipe line in slurry form in slurry receiving tanks and filtered in high efficient pressure filters. The iron ore is dewatered (called concentrate). The filtrate is clarified and reused in the pellet making.

Mixing: The iron ore concentrate is mixed with additives like coke fines, limestone powder, and bentonite in high intensity mixer and with required quantity of water for ideal moisture for next stage of process called balling.

Balling: The homogeneous feed is fed to balling discs. Green balls are formed in an inclined pan of 7.5 m diameter, driven by variable frequency drives.

Indurations: The green balls are converted to pellets by fired in the indurating furnace. In this process, the wet pellets are dried, preheated, indurated, and cooled on a continuous moving grate without intermediate transfers. The indurating burners will be fired with coal gas. The process air introduced for pellet cooling will be circulated from the cooling zone of the grate in a multipass manner to the other process zones. The heat transferred to the air in the cooling zone will be transferred to the zones for drying and preheating of the green pellets. The indurating furnace divided in to five zones. The zones are up draft drying, down draft drying, preheating, firing, cooling zones. The indurating temperature is around 1300 deg C.

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Product Handling: Pellet is discharged from end of the machine and screened to remove materials that are recycled to the hearth layer. The pellets are stored in sheds.

Figure- 5.0 : Schematic Process Flow of Pellet Plant

3.5.5 INDUCTION FURNACE

It is also proposed to install 5x18 T + 8x8 T numbers of Induction furnaces.

The plant will produce steel in the form of billets, TMT Bars and Strips & Structural products through IF-CCM-RM route. Steel making will be done using induction furnaces. A brief description of the processes is dealt in subsequent paragraphs and the process flow sheet is given below.

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Steel Making by Induction Furnace The greatest advantage of the Induction Furnace is its low capital cost compared with other types of Melting Units. Its installation is relatively easier and its operation simpler. Among other advantages, there is very little heat loss from the furnace as the bath is constantly covered and there is practically no loss during its operation. The molten metal in an Induction Furnace is circulated automatically by electromagnetic action so that when alloy additions are made, a homogeneous product is ensured in minimum time. The time between tap and charge, the charging time, power delays etc. are items of utmost importance is meeting the objective of maximum output in tones/hours at a low operational cost. The disadvantage of the induction furnace is that the melting process requires usually selected scrap because major refining is not possible.

The process for manufacturing steel may be broadly divided into the following stages:

i) Melting the charge mixed of steel & Iron scrap ii) Ladle teeming practice for Casting (OR)

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iii) Direct teeming practice for billet Casting unladdable teeming machine

The furnace is switched on, current starts flowing at a high rate and a comparatively low voltage through the induction coils of the furnace, producing an induced magnetic field inside the central space of the coils where the crucible is located. The induced magnetic fluxes thus generated out through the packed charge in the crucible, which is placed centrally inside the induction coil.

As the magnetic fluxes generated out through the scraps and complete the circuit, they generate and induce eddy current in the scrap. This induced eddy current, as it flows through the highly resistive bath of scrap, generates tremendous heat and melting starts. It is thus apparent that the melting rate depends primarily on two things (1) the density of magnetic fluxes and (2) compactness of the charge. The charge mixed arrangement has already been described. The magnetic fluxes can be controlled by varying input of power to the furnace, especially the current and frequency.

In a medium frequency furnace, the frequency range normally varies between 150-10K cycles/second. This heat is developed mainly in the outer rim of the metal in the charge but is carried quickly to the center by conduction. Soon a pool of molten metal forms in the bottom causing the charging to sink. At this point any remaining charge mixed is added gradually. The eddy current, which is generated in the charge, has other uses. It imparts a molten effect on the liquid steel, which is thereby stirred and mixed and heated more homogeneously. This stirring effect is inversely proportional to the frequency of the furnace and so that furnace frequency is selected in accordance with the purpose for which the furnace will be utilized.

The melting continues will all the charge is melted and the bath develops a convex surface. However, as the convex surface is not favorable to slag treatment, the power input is then naturally decreased to flatten the convexity and to reduce the circulation rate when refining under a reducing slag. The reduced flow of the liquid metal accelerates the purification reactions by constantly bringing new metal into close contact with the slag. Before the actual reduction of steel is done, the liquid steel which might contain some trapped oxygen is first treated with some suitable deoxidizer. When no purification is attempted, the chief metallurgical advantages of the process

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attributable to the stirring action are uniformity of the product, control over the super heat temperature and the opportunity afforded by the conditions of the melt to control de-oxidation through proper addition.

As soon as the charge has melted clear and de-oxidising ions have ceased, any objectionable slag is skimmed off, and the necessary alloying elements are added. When these additives have melted and diffused through the bath of the power input may be increased to bring the temperature of metal up to the point most desirable for pouring. The current is then turned off and the furnace is tilted for pouring into a ladle. As soon as pouring has ceased, any slag adhering to the wall of the crucible is crapped out and the furnace is readied for charging again.

As the furnace is equipped with a higher cover over the crucible very little oxidation occurs during melting. Such a cover also serves to prevent cooling by radiation from the surface heat loss and protecting the metal is unnecessary, though slags are used in special cases. Another advantage of the induction furnace is that there is hardly any melting loss compared with the arc furnace.

CONTINUOUS CASTING MACHINE The molten steel from the IF is cast in a continuous casting machine to produce billets. In some processes, the cast shape is torch cut to length and transported hot to the hot rolling mill for further processing. Other steel mills have reheat furnaces. Steel billets are allowed to cool, and then be reheated in a furnace prior to rolling the billets into bars or other shapes.

The process is continuous because liquid steel is continuously poured into a ‘bottomless’ mould at the same rate as a continuous steel casting is extracted.

1) Before casting begins a dummy bar is used to close the bottom of the mould. 2) A ladle of molten steel is lifted above the casting machine and a hole in the bottom of the ladle is opened, allowing the liquid steel to pour into the mould to form the required shape. 3) As the steel’s outer surface solidifies in the mould, the dummy bar is slowly withdrawn through the machine, pulling the steel with it. 4) Water sprays along the machine to cool/ solidify the steel.

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5) At the end of the machine, the steel is cut to the required length by gas torches.

3.5.6 ELECTRIC ARC FURNACE It is also proposed to install 1x45 T number of Electric furnace.

In furnace of this type, the electric energy is used to form an electric arc which heats the metal by radiant heat evolved. This can be further sub-divided as: • Direct Arc Furnace: Electric arcs are formed between the electrodes and metal being heated, which is thus a component of the electric circuit and is heated by radiation from the arcs. They are used in steel making. • Submerged Arc Furnace: The arcs burn under a cover of solid charge which surrounds the electrodes. These are mostly used for ore smelting operations, in particular for making Ferro-alloys.

Figure- 6.0 : A Modern EAF Schematic Diagram

An EAF is a furnace that heats charged material by means of an electric arc. They range in size from small units of approximately one tonne capacity (used in foundries for producing cast iron products) up to about 400 tonne units used for secondary steelmaking. Arc furnaces used in research laboratories and by dentists may have a capacity of only a few dozen grams. EAF temperatures can be up to 1,800oC.

The furnace has a steel shell in the form of a tapered cylinder with a spherical bottom. The shell has a refractory lining inside. The reaction chamber of the furnace is covered from above by a removable roof made of refractory bricks held by a roof ring. The furnace has a main charging door and a tap hole with tapping spout. It is fed with a three phase alternating current and has three electrodes fastened in electrode clamps which are connected by means of a

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sleeve with a movable electrode stand. Current is supplied via water cooled flexible cables and water cooled copper tubes. The furnace rests upon two support sectors which can roll on the furnace stand to tilt the furnace towards the main door and towards the tap hole for tapping, the tilting motion being affected by a rack mechanism.

The furnace is charged from the top by means of a pan. To open the reaction chamber for charging, the furnace roof which is suspended from chains is raised up to the gantry. The latter together with the roof and electrodes, can be swung towards the tapping spout. A rotating mechanism is provided to rotate the furnace shell through an angle of 40 degrees in both directions from the normal position. The furnace also has an electromagnetic stirring device for intermixing of molten metal.

Although electricity provides most of the energy for EAF steelmaking, supplemental heating from oxy-fuel and oxygen injection is used. The major advantage of EAF steelmaking is that it does not require molten iron supply. By eliminating the need for blast furnaces and associated plant processes like coke oven batteries, EAF technology has facilitated the proliferation of mini- mills, which can operate economically at a smaller scale than larger integrated steelmaking. EAF steelmaking can use a wide range of scrap types, as well as DRI and molten iron (up to 70%). This recycling saves virgin raw materials and the energy required for converting them. The EAF operates as a batch melting process, producing heats of molten steel with tap-to- tap times for modern furnaces of less than 60 minutes.

Arc furnace process Steel in arc furnace may be refined with or without oxidation. Oxidation may be dispensed where the metal ingredients of the charge are close to the desired steel grade in analysis. In such case, a reducing slag is used both in melting and refining (single refining or single slag practice). Usually, this process is used to smelt alloy wastes to alloy steel. In working with oxidation, the charge is melted and refined under an oxidizing slag or ‘black slag’ (the slag is called ‘black’ due to the colour it is given by the iron oxide), removing phosphorous and/or carbon almost completely; then the ‘black slag’ is removed and a reducing or ‘white slag’ containing lime, fluorspar, silica, carbon and/or ferrosilicon made up, giving a very high degree of desulphurization and good de-oxidation. Additions of the required ferroalloys are made during this stage, or sometimes to the ladle.

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The principal processes in the oxidizing period are i) Removal of phosphorous ii) Oxidation of silicon and manganese iii) Removal of sulphur iv) Removal of nitrogen and hydrogen, v) Removal of non-metallic inclusions, vi) Heating of the metal, vii) Reboil and viii) Carbonization of metal.

A modern development in arc furnace practice is the use of an oxygen lance for injecting high pressure oxygen into the bath, during the oxidation period. This removes carbon more rapidly than by ore alone. Lancing does not need an arc for heating. The use of oxygen lance has special advantage in the manufacture of stainless steel. If oxygen is blown into the metal, exothermic reactions prevail in the bath, the metal is heated up quickly, and it is possible to switch off the current as soon as the carbon begins to burn intensively.

The aims of the reducing period during the melt in a basic EAF are:

i) De-oxidation of the metal ii) Removal of sulphur, iii) Adjustment of the steel composition to specifications, iv) Control of the bath temperature, and v) Preparation of well oxidized free running highly basic slag, which can be used for off-furnace treatment of the metal in the ladle.

The reducing period can be shortened considerably if the metal is treated with argon or synthetic slag or deoxidized in the ladle.

a) Important Segments:

A. Electrodes: An important characteristic of an EAF heat is the consumption of electrodes per tonne of steel produced. The types of electrodes used are carbon and graphite electrodes. The graphite electrodes are much superior to carbon electrodes as they have a 4 to 5 time greater electrical connectivity, which allows high current densities to be employed and lowers electrical losses. Graphite electrodes begin to oxidize at higher temperatures, can be easily

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machined, and their consumption per tonne of steel is only one half that of carbon electrodes. Graphite electrode consumption varies between 6 to 9 kg/ton, and that of carbon electrodes between 15 to 18 kg or more. Due to this reason, even with its high cost, graphite electrodes are popular. It has been observed that the consumption of electrodes increases initially with increasing capacity of furnace and then start decreasing beyond capacity of 40 tonne. At capacities more than 100 t, the electrode consumption comes around 5 kilogram per tonne (kg/T) for properly designed furnaces.

The factors that determine consumption of electrodes are as follows: • Oxidation of surface of electrodes in the furnace by oxygen in the sucked in air • Mechanical losses owing to fracture of electrodes • Atomization by electric arc • Dissolution in the slag during bath boil

The consumption of electrodes depends on furnace capacities, method and conditions of a heat, and also on the effective sealing of the electrode ports and the furnace doors. Approximately, two third of the total consumption of electrodes result from their oxidation due to poorly sealed furnace or a long operation with the furnace door left open. The main rules of proper maintenance of electrodes during operation are as follows:

Electrodes must be kept in dry place; if moisture is present in the electrodes, longitudinal or transverse cracks can form during rapid heating of the furnace, resulting in breakage. The leakage of furnace gases through the gaps in the roof at the electrodes must be eliminated; this will lower the heating of the electrodes and their oxidation by atmospheric oxygen. Electrode sections should be screwed tightly together. The electrode holes in the roof should be positioned accurately; electrodes should move freely without touching the sealing rings and roof lining; if an electrode is subjected to lateral pressure during lowering, it may break. The diameter of electrodes should correspond to the current supplied; if the current density is excessively high, electrodes will be heated and oxidized vigorously; if the electrode diameter is excessively large, energy consumption will be above normal.

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B. Electric Power / Oxygen The performance of EAFs is assessed in terms of daily output in tons per 1000 KVA of power. Daily output is a function of nominal furnace capacity, working conditions, and the process adopted. On average, it is 3-14 tonnes per 1000 KVA. Energy consumption is likewise governed by the three above factors and amounts to 500 – 700 KWh per tone for carbon steel up to 1000 KWh per tonne of alloy steel if only scrap is charged.

With increasing addition of liquid steel and HBI, considerable reduction in specific power consumption has been recorded with increase of specific oxygen consumption.

With 30% hot metal, power consumption was around 400 KWh/t liquid steel and oxygen consumption around 28 Nm3/t liquid steel. With 40% hot metal, this is around 300 KWh/t liquid steel and around 35 Nm3/t liquid steel. The remarkable difference in power consumption of approximately 100 KWh/t between 30% and 40% hot metal is not significant because with 30% hot metal, it is necessary to first charge the scrap, then melt down the scrap for approx. 9 min. to get space in the furnace for the hot metal. The furnace is then switched off, the roof opened and the hot metal can be charged. This operation causes additional losses compared to step 2 to 4 with 40% – 50% hot metal input where the hot metal is poured to the scrap prior to power on after the end of charging, the furnace is switched on and operated without interruption until the end of the heat.

For 50% hot metal charging, specific power consumption values to approximately 250 KWh/t of liquid steel and oxygen consumption of approximately 40 Nm3/t hot metal can be achieved with silicon content of hot metal of 0.8%. Thus with higher hot metal charging rates into the EAF, consumption of electric energy and electrodes can be reduced.

b) Process Description

The steel melting shop has been designed to produce liquid steel and cast the same in continuous casting machine to form billets, blooms and ingots of various specifications. Electric Arc Furnaces (1 x 45 ton) has been proposed in the steel melting shop for production of alloy steel and low carbon steel.

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The hot metal produced in blast furnace will be taken to desulphurization plant. The desulphurised metal is taken in the transfer ladle by injection of a mixture of Calcined lime, calcium carbide (55%) and magnesium (97%) through a refractory coated immersed lance. Nitrogen is used a carrier gas. De-slagging and fume extraction facility has been considered. The desulphurised metal is taken for steel making in Steel Melting Shop comprising Electric Arc Furnace technology. The EAF will be AC Arc type, bottom tapping, water cooled side walls, roof side graphite electrode, foamy slag formation, continuous charging of hot DRI through roof, mechanized charging of lime, ferroalloy and scrap through roof and coke / coal powder by injection into furnace. Heating, deoxidation, alloying and homogenization of chemical composition takes place in the Laddle Refining Furnace. Overhead bins are provided for storing lime, deoxidizers and ferroalloys.

The metallic charge to the Electric Arc Furnace (EAF) is desulphurised hot metal and sponge iron in defined ratios. DRI comes directly from the DR Plant by conveyors. The hot metal comes from the blast furnace by ladle carried by a car, which is driven by a loco. The ladles are lifted from the car by EOT crane and kept aside in an area earmarked for them. Lime and Ferroalloys are stored in a silo and filled by bucket elevator. A belt conveyor carries them to day bins. A gallery between the EAF and LF bays is provided for Lime and Ferro-Alloy day bins. Ferro-alloys are filled in the day bins with a bucket lifted by a hoist in the gallery itself. These bins feed the ladle at EAF and LRF.

Hot metal is charged into the EAF with the help of EOT crane. The roof is swung open and scrap is charged. The cycle starts with the charging of Scrap on the hot heel of the EAF, after this the hot metal is charged from top (slag door side). Arcing starts and melts part of the scrap and clears it from the door. Intensive oxygen blowing starts and lasts for about 15-17 minutes for reducing carbon. Oxygen lancing is done through the slag door with manual door lances. DRI is continuously fed from the time the lancing starts. After the oxygen lancing is over arcing starts. This lasts for 25-30 minutes. During this period phosphorus is reduced and slag is over run from slag door. Towards the end of the arcing, oxygen lancing is done again along with lime dosing for maintaining foaming slag and final dephosphorisation. The tap-to-tap time for fettling, slag-off, superheating, etc. is around 65 minutes. Samples are taken during the heat for measurement of C, P and N percentages followed by corrective action. Slag is poured into the slag pots on a car and taken out. Slag generation is around 5% of the total charge.

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The liquid metal is tapped into ladle at about 1620oC and ferroalloys are charged into the ladle during tapping and then taken to Laddle Refining Furnace. Desulphurisation, chemistry correction, partial degassing and temperature control activities are done in the LRF. The process lasts for about 30-40 minutes. Purging for stirring is done throughout the process, through porous plug from the bottom. After refining, the Laddle is lifted by the EOT crane and transported to the Continuous Casting Machine (CCM) where it is placed on the turret. The turret rotates by 180o. The Laddle pouring hole is automatically positioned over the tundish. The slide gate is opened hydraulically and the pouring starts into the tundish. From the tundish liquid steel flow to moulds which shapes and forms the slabs. The hot slab goes through a water spray chamber and comes to a straightening cum withdrawal machine which is a set of hydraulically pressed rollers. The slab is cut to required sizes and comes to a run out roller table. In case of slab caster, the slabs are cut by oxy-propane torch cutting machine and the cut slabs are transported through run out roller table to cross transfer and fed to plate mill and hot strip mill.

Figure – 7.0 - Process flow of Electric Arc Furnace

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3.5.7 ROLLING MILL The company is planned to set up Rolling Mill for Long products as a finished product. The proposed capacity of Rolling Mill is as follows,

Division Plant Name Final Rolling Old Completed New Project Mill Capacity Capacity enhancement from

0.048 Existing 0.48 MTPA to 0.15 Long Products Mill - MTPA MTPA 1 (through modification) Capacity enhancement from Existing 0.055008 MTPA to 0.15 Long Product Mill - 2 0.055008 MTPA 1 MTPA Rolling MILL MTPA (through modification) (Long Capacity enhancement from 0.196992 Products) Long Product Mill - 3 Existing 0.196992 MTPA to 0.2 MTPA MTPA 0.3 Long Product Mill - 4 - MTPA

Long Product Mill - 5 0.2 - MTPA

Rolling mill consists of set of equipment together will produce the said quantity. Rolling mill will primarily comprise of one tunnel type temperature equalizing-cum-holding furnace with roughing and finishing strand, one pendulum type bar and cobble shear, one high pressure de-scaling station, run out roller table equipped with turnover cooling bed along with auxiliary facilities and roll shop equipment.

Operating parameters The net operating hours of the mill are affected by various factors considering integrated direct linked operation with furnaces, ladle furnace and bloom caster unit, such as relining of furnaces, breakdown and mismatching of operational requirements between the units. Considering the effect of the external factors enumerated above and the operation and maintenance requirements of the mill itself, the net annual operating hours of the mill will be about 7200.

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Product weighing station A product weighing station will be included to provide weight output to computer tracking and logging systems and print out a tag for attachment to the finished coil.

Product marking machine A marking machine will be provided to print bar data on outer wrap of the coil. The machine will comprise of the frame, print head, ink system, etc. The signals for marking data will be fed through PC and received through PLC / microprocessor system.

Roll grinding and bearing inspection facilities The roll grinding and bearing inspection facilities will be installed in a separate roll shop which will be located adjacent to the main mill bay.

Shop layout The proposed mill equipment and other associated facilities will be housed in multibay building consisting one bay for tunnel furnace and two parallel bays for mill and roll grinding and bearing inspection facilities. The main equipment of the mill and storage area will be located in a bay of 30 m width having about 300 m length. This bay will be served by EOT cranes. The motor room for the mills will be located in a bay of 21 m width and 63 m length, and will be served by one 45 t capacity EOT crane. All technological basements like oil cellars, hydraulic pump accumulator stations, strip cooling pump house, etc. will be located in the mill bay. The water circulation system including scale pit will be located outside the main mill building.

TMT Process By adopting thermo mechanically treatment process higher strength of TMT bars is obtained. In this process, steel bars get intensive cooling immediately after rolling. When the temperature is suddenly reduced to make surface layer hard, the internal core is hot at the same time. Due to further cooling in atmosphere and heat from the core, the tempering takes place. This process is expected to improve properties such as yield strength, ductility and toughness of TMT bars. With above properties, TMT steel is highly economical and safe for use. TMT steel bars are more corrosion resistant than Tor steel.

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3.5.8 COKE OVEN PLANT The coke oven complex will have one module producing 3,00,000 TPA coke.

In this process, the coal to be charged in oven is first converted into a cake through stamping process and then charged into oven. The oven will be provided with self-adjusting suction pressure controller for individual oven as well as a changer controller at chimney base in order to control thermal regime of Coke Oven Battery. The major facilities envisaged are as under:

• Coal Preparation and Proportioning Plant • Coke Oven Battery Proper • Coke Screening Plant • Gas Cleaning Heat Recovery System and Power Plant • Auxiliary production facilities like maintenance shop, laboratory, warehouse etc.

Coal Preparation& Proportioning Plant The prime objective of a coal preparation plant is to feed consistent quality of coal to coke oven batteries for production of required quality of BF coke. A separate coal yard will be provided near the Coke oven battery. Coal will be received through rail wagons, self-discharging trucks & tipper system.

The unloading and loading system is designed to capacity of 100t/h, while the blending, crushing and feeding system is designed to capacity of 100t/h.

The cleaned coal shall be fed into the coal hopper. Appropriate number of coal blending hoppers shall be provided based on the coking coal types, and electronic belt scale shall be provide below the coal blending hopper for measuring the coal blending proportion. The coal blending hoppers shall be welded with steel, and electrical vibrator shall be provided on the outer wall to ensure no sticking or blocking.

Two back-impact plate hammer crushers shall be selected for crushing of raw material coal. Permanent magnetic iron remover shall be provided before raw materials enter the crusher.

The coal preparation plant is mainly composed of cleaned coal yard, coal receiving and blending hopper, crusher room and cleaned coal belt corridor, for purpose of stripping, loading, coal blending, crushing and other tasks so

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that blended coal of required grain size shall be delivered to the coal tower of the coke oven.

The coal preparation plant shall be continuously operated to 330 Days every year and production personnel shall be allocated to three-shift operations

The major facilities envisaged are as under:

• Supply of coals 3-4 grades of coal Imported and indigenous will be blended to make charge mix. In actual practice, coal supply will depend upon actual over all receipt patterns and accordingly blend composition is to be adjusted keeping in view the qualitative parameters of BF coke required.

This would also require laboratory tests for establishing the most optimum coal blend.

Brief Description of Coke oven Plant Coke quenching system consists of Coke quenching pump house, quenching tower, coke dust trap device, Coke fines sedimentation pond, clean water pond, coke fines dewatering system. A coke fines bucket crane is placed over the sedimentation pond to periodically remove the coke fines from the pond. The coke fines removed from the pond is used in sinter plant and Ferro alloy plant.

The coke is mainly quenched by the water entering at the bottom of the coke box of the quenching car as well as by the rising vapor. By flooding the coke box from the bottom, the coke is quickly cooled down creating steam which catapults the coke high up into the shaft. As the coke falls down the small loose breeze coke particles are separating from the lumps, which has a stabilizing effect to the coke. Furthermore, the quick cooling down of the coke reducing the development of unwanted gas emissions.

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Figure – 8.0 - Process flow of Coke Oven Plant

The Coke quenching tower is made of a reinforced concrete structure to accommodate the second set of emission control facilities and vapor spray system. The two stages of baffle plates fastened on supporting structures of wood are separating the dust from the quenching vapor. The baffle plates are arranged louver-like in a roof type pattern. The baffles of the lower stage are made of stainless steel, the baffles of the upper stage are of special plastic material. Further, two stages of vapor spraying system arranged below each stage of baffle plates. The piping is made of stainless steel and contains nozzles to spray the water on the rising vapours. By the water spray nozzles, located below the dust catching louvers, the rising vapours are cooled and dust particles are washed down. The water for spraying of the vapours is extracted from the clean water pond of the quench water treatment plant. Dust particles not washed down by spraying are largely removed by the baffle plates installed above. Further, the arrangement of the louvers is designed to ensure an equal distribution of the vapours over the full section of the quench tower stack. By this system, the required limitation of dust in the quenching vapor is achieved.

Buttress Wall Reinforced concrete buttress walls shall be provided on both ends of the coke oven to bear thrust from individual parts of the coke oven.

Electrostatic Precipitator (ESP) will be installed in Coke Oven after Waste Heat Recovery Boiler. The outlet of ESP shall be vented to atmosphere through a stack.

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Power From Coke Oven Plant: (15 MW Generations) Waste gases generated from coke ovens contain carbon monoxide and other volatile matter which after combusted releases significant heat. This heat contains significant calorific value (GCV of mixed fuel - about 2300 kcal/Nm3). This heat will be used to produce steam through Waste Heat Recovery Boilers. The high pressure steam will be used to run turbines and generate 15 MW electricity.

3.5.9 DUCTILE IRON PIPE PLANT (0.1 MTPA)

M/s SSPL is planning to install 0.1 MTPA Ductile Irons Pipes Plant. The Manufacturing Process consists of the following processes steps,

1. Molten Hot Metal preparation and Chemistry correction 2. Magnesium treatment 3. Centrifugal Casting 4. Core Making 5. Mold Maintenance 6. Heat Treatment by Annealing Furnace 7. Zinc Coating 8. Hydraulic Pressure Testing 9. Cement Mortar Lining 10. Bitumen Coating 11. Finishing

A ductile iron pipe is produced with centrifugal casting method. The molten ductile iron is poured into a rapidly spinning water-cooled mould and centrifugal force results in an even spread of iron around the circumference.

Molten Hot Metal Preparation: In Blast Furnace Hot Metal, Carbon percentage (%) is usually 4.2% to 4.3%. But in DIP, Carbon percentage is 3.6%. Therefore Steel Scrap with 0.3% Carbon is to be added by about 12% to 15% of BF Hot Metal.

Magnesium Treatment: During this process, molten Hot metal treated with Ferro Alloys, like Silico-Manganese, Magnesium, carbon etc. and melted with 1460-1520°C of temperature. The George Fischer Converter process has been carried out in the crucibles at about 1500°C by tundish treatment and it was performed by means of 2,1% of Fe-Si-Mg. Next, molten iron will be poured to the cast process.

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Centrifugal Casting: Centrifugal casting requires water cooling metallic and centrifugal casting machine that works automatically. Types of the machine are divided as the pipe dimension (DN). Here For example, there are machine for DN80-300mm, machine for DN350-700mm or machine for DN700- 1000mm.

During the process, the treated liquid iron is poured into spinning mould through a runner. The hot metal starts solidification in the water cooled mould and is extracted as complete pipe. When the molten iron enters the mould spinning, it needs water high speed spin through the long through for the water cooling system. During this process, the solidification process will be started. Finally, the extractor will extract the pipe after it solidified completely.

Core Making: Core making equipment consists of manual machine and automatic machine known as core-making jets. Silicon sand, solidifying agent and resin will be mixed and rolled. Then it’s moved to the hopper of the core- making jets machine with a conveyor. Core making process will be started by jetting that material into core box. When it’s solidified completely core will be made and tested. Next, core will be conveyed to casting process.

Mould Maintenance: To remove the rust in the internal surface of a mould, it will be grounded with sand wheel before it’s dotted with penning head to increase its crack resistance. If cracks found on the mould surface, it will be removed by turning the mould and welding the turning area. Next grinding and penning will accomplish the maintenance.

Annealing/ Heat Treatment : The process consists of heating section, heat holding section, slow cooling section and fast cooling section. Ductile iron pipe will be entered to this 52 meters long machine and rolled on it. Certainly its temperature will be controlled.

Zinc Coating: Arc melted Zinc/ Zinc-alloy is sprayed on the outer surface of pipe.

EN 545/598 mandates a minimum zinc content of 130 g/m2 (with local minima of 110 g/m2 at 99.99% purity), and a minimum average finishing layer thickness of 20 µm .

Finishing and Hydrostatic Testing: Pipe dimension will be checked here and it’s important to remove the fins on the internal surface. A Hydrostatic

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pressure testing will be done in 10 seconds with proper pressure as per the following chart

Hydraulic pressure for hydrostatic testing Nominal Diameter (mm) Hydraulic Pressure (Mpa): 80=50mpa=300, 200=50mpa =600, 700=50mpa =1000, 1100=50mpa =2000

Cement Lining: Pipe will be rolled with low speed and it will be sprayed with material. This material includes cement, sand, and water. Pipe will be rolled with high speed to move excessive water and deposit cement. Nature cure will be given to cement lining. Grinder will smooth its surface

Bitumen Coating: As zinc coating, bitumen will be sprayed to pipe. But it will be done to internal and external surface. Bitumen will reduce the corrosion on the external surface.

Finishing: This process includes marking (trade mark), painting if it’s required and packing. It will pack with thick wood and bundled with steel belt.

Ductile Iron Metallurgy: Ductile Iron is an iron with elementary alloy such as carbon, Si, Mn and Mg. Commonly, the carbon content on its structure is 3 % or more. Ductile iron is one of the most important engineering materials, in view of its excellent cast-ability, significantly better mechanical properties and low cost. Simply, it’s similarly to steel in strength, toughness, ductility and hardness.

3.5.10 PRODUCER GAS PLANT In the proposed project a 36,000 Nm3/hr capacity producer gas plant will be installed. Producer gas is fuel gas that is manufactured from material such as coal, as opposed to natural gas. In the United Kingdom, producer gas, also called suction gas, specifically means a fuel gas made from coke, anthracite or other carbonaceous material. Air is passed over the red-hot carbonaceous fuel and carbon monoxide is produced. The reaction is exothermic and proceeds as follows:

2C + O2 + 3.73 N2 → 2CO+ 3.73 N2

The nitrogen in the air remains unchanged and dilutes the gas, giving it a very low calorific value. The concentration of carbon monoxide in the "ideal" producer gas was considered to be 34.7% carbon monoxide (carbonic oxide) and 65.3% nitrogen. After "scrubbing", to remove tar, the gas may be used to

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power gas turbines (which are well-suited to fuels of low calorific value), spark ignited engines (where 100% petrol fuel replacement is possible) or diesel internal combustion engines (where 40% - 15% of the original diesel fuel is still used to ignite the gas). During World War II in Britain, plants were built in the form of trailers for towing behind commercial vehicles, especially buses, to supply gas as a replacement for petrol (gasoline) fuel. A range of about 80 miles for every charge of anthracite was achieved.

3.5.11 CEMENT GRINDING UNIT

Portland Pozzolana Cement:

The Portland Pozzolana Cement is a kind of Blended Cement which is produced by either inter-grinding of OPC clinker along with gypsum and pozzolanic materials in certain proportions or grinding the OPC clinker, gypsum and Pozzolanic materials separately and thoroughly blending them in certain proportions.

Pozzolana is a natural or artificial material containing silica in a reactive form. It may be further discussed as siliceous or siliceous and aluminous material which in itself possesses little, or no cementitious properties but will, in finely divided form and in the presence of moisture, chemically react with calcium hydroxide at ordinary temperature to form compounds possessing cementitious properties.

It is essential that pozzolana be in a finely divided state as it is only then that silica can combine with calcium hydroxide (liberated by the hydrating Portland cement) in the presence of water to form stable calcium silicates which have cementitious properties. The pozzolanic materials commonly used are:

▪ Volcanic Ash ▪ Calcined Clay ▪ Fly Ash ▪ Silica Fumes

The Indian standards for Portland Pozzolana Cement have been issued in two parts based on the type of pozzolanic materials to be used in manufacturing of Portland Pozzolana Cement as given below:

▪ IS 1489 (Part 1) 1991, Portland Pozzolana Cement – specification (fly ash based)

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▪ IS 1489 (Part 2) 1991, Portland Pozzolana Cement – specification (Calcined clay based).

Fly ash is a waste product of Thermal power Plant which creates disposal problems at Thermal power plant site. The yearly production of flyash in India is about 70 million tonnes per annum. This would increase in future depending upon the new coal based thermal power plants to be installed in the country. The present utilisation of fly ash in production of blended cement in India is meagre.

The fly ash particles are spherical and are generally of higher fineness than cement so that the silica is readily available for reaction. As per IS 3812: 1981 the percentage of silica and alumina should be minimum 70% and maximum loss on ignition 12%. Much superior quality fly ash is available from Indian thermal power plants than specified in IS code.

The Portland Pozzolana Cement makes concrete more impermeable and denser as compared to Ordinary Portland Cement. The long-term strength (90 days and above) of Pozzolana cement is better compared to OPC. The pozzolanic material reacts with calcium hydroxide liberated by the hydrating Portland Cement and forms cementitious compounds generally known as C-S- H gel. The reaction can be given as under:

C3S + 6H ------> C3S2H3 + 3 Ca(OH)2 2C2S + 4 H ------> C3S2H3 + Ca (OH)2 Ca(OH)2 + (SiO2 + Al2O3) ------> C3S2H3 + Other components

The flyash converts Ca(OH)2 in to useful cementitious compound (C3S2H3) thereby increasing the properties of hardened concrete.

The Portland Pozzolana Cement produces less heat of hydration and offers greater resistance to the attack of aggressive waters than normal Portland Cement. Moreover it reduces the leaching of calcium hydroxide liberated during the setting and hydration of cement.

The Portland Pozzolana Cement is ideally suited for construction such as Hydraulic structures, Mass concreting works, Marine structures, Masonry mortars and plastering Under aggressive conditions and in all other application where OPC is used.

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Storage & Packing: The ground cement is conveyed to cement silos for storage of different types of cement from where it is extracted and packed in HDPE or PP bags by electronic rotary packing machines and dispatched to consumers by road. Mechanized loading system for loading of packed bags on trucks is envisaged.

Quality Control: In addition to the equipment for standard tests for cements, such as the determination of setting times, strengths, water requirement, etc. the following equipment will be available for the control of the production of PPC.

X-ray fluorescence device For determining the chemical composition Vibratory Disc Mill For production of tablet Tablet-press For production of tablet Laser granulometer For determining the particle characteristics (online and offline) Blaine device For determining the specific surface

Ordinary Portland Cement: The manufacturing process of Ordinary Portland cement is made primarily from calcareous and argillaceous materials, such as limestone or chalk, and from aluminium oxide, silica oxide, ferric oxide and magnesium oxide found as clay or shale. Raw materials for the manufacture of Portland cement are found in nearly all countries and cement plants operate all over the world.

The raw materials are first crushed to size less than 50 mm. The raw materials are ground together in a raw mill. Accurately controlled proportions of each material are delivered onto the belt by weigh feeders. The raw mix is formulated to correct chemical composition.

Calcium and silicon combine together to form the strength producing compounds such as tricalcium silicate and dicalcium silicate. Aluminium and iron combine to form flux which acts as a solvent for silicate forming reaction. The raw mix prepared must be frequently analyzed by X-ray fluorescence analysis. This analysis is used to make adjustments to raw materials feed rate.

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The raw mixture prepared is heated in large rotary kiln up to about 1400-1450 °C. A series of chemical reaction occurs as the temperature rises. The peak temperature is maintained so that the material does not contain sinter products. Sintering is the process of melting the mass of the material. Too low sintering results in insufficient sintering and incomplete chemical reaction and too high temperature results in formation of molten mass, destruction of kiln lining and wastage of fuel.

The resulting material formed in the kiln is the clinker having diameter of 10-20 mm in shape of balls. The clinker is allowed to cool and transported to ball and tube mill where it is ground to a fine powder. During grinding 5% of gypsum is added to prevent quick setting of cement.

3.6 Raw material required along with estimated quantity, like source, marketing area of final products, mode of transportation of raw material and finished products.

The major raw material, which will be handled, consists of Iron Ore, Coal, dolomite, Limestone, Manganese Ore, Quartzite etc. The annual requirement of major raw materials, which will be required for the proposed project is presented in the material balance diagram as presented below. Raw materials will be received at plant site by rail/road. All the trucks for raw material and finished product transportation shall comply with the applicable environmental norms.

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MATERIAL BALANCE DIAGRAM OF STEEL PLANT

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MATERIAL BALANCE DIAGRAM OF CAPTIVE POWER PLANT

Marketing area of final products:

Following are key customers of Shyam Group.

Domestic Customers Overseas Customers ✓ Jindal Stainless Limited ✓ Posco (Korea) ✓ Larsen & Toubro ✓ Posco (Indonesia) ✓ BHEL ✓ Mitsui & Co (Japan) ✓ Adani ✓ Lux Alloy (Luxembourg) ✓ JSW Steel Limited ✓ Tsingshan Group (China) ✓ Tata Steel ✓ Toyota Toshoe (Japan) ✓ Steel Authority of India Ltd ✓ Jagdamba Steel (Nepal)

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Domestic Customers Overseas Customers ✓ H.K. Enterprises ✓ Jagdamba Enterprises (Nepal) ✓ Singhal Enterprises Pvt. Ltd. ✓ Goenka Group (Nepal) ✓ Bhagyalaxmi Rolling Mill Pvt . Ltd. ✓ Laxmi Steels (Nepal) ✓ Shakti Traders ✓ Panchkanya Steels (Nepal) ✓ Gajkeshri Steels ✓ Sudha Steels ✓ K.L.Steels ✓ The Dhamra Port Company Limited

Mode of transportation of raw materials and finished products:

The Company has its own railway siding, which is being used for transportation of Raw materials and finished goods.

The plant is also closely connected with highway. The unit is located about 8 kms from Grand Trunk Road which provides easy and good transport connectivity.

3.7 Resource optimization/ recycling and reuse envisaged in the project, if any.

In the proposed project waste heat from Sponge iron plant & Coke oven plant will be used in WHR Boiler to generate steam & finally power of 45 MW which will save equivalent quantity of natural resource like coal.

3.8 Availability of water and its source, energy/ power requirement and source.

Daily water requirement for the Total Project will be around 12,500 m3/day (Existing Units: 5092 m3/day, Units being Implemented: 1434 m3/day & Proposed Units: 5867 m3/day) including Domestic Demand 107 m3/day, which will be sourced from Ajay river / ADDA Supply.

The water Balance Diagram for the entire project is presented in Figure- 9.0.

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FIGURE – 9.0 : WATER BALANCE DIAGRAM

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4 Site Analysis

4.1 Connectivity.

The connectivity of the site to the key logistic/raw material/utility centres has been tabulated below:

Connectivity Details Rail The nearest railway station to the site is Ikrah Junction (1.7 Kms). Other railway stations in close proximity are Raniganj Railway Station (15 Kms) and Asansol Railway Station (25 Kms).

The Company has its own 1.44 Kms railway siding between Tapasi and the project of 1.44 Kms, which is being used for transportation of Raw materials and finished goods. Road The plant is also closely connected with highway. The unit is located about 8 kms from Grand Trunk Road which provides easy and good transport connectivity. Airport The nearest airport is Kazi Nazrul Islam Airport, Durgapur (26 Kms), Panagarh Airport (45 Kms) and Dhanbad Airport (87 Kms). Town/ Cities The nearest Town/ Cities to the site are: Jamuria – 6 Kms Raniganj – 13 Kms – 15 Kms – 19 Kms

4.2 Land form, Land use and Land ownership.

All the units shall be accommodated within 262.64 Hectares (649 acres) of land in the existing plant boundary. The required land is already in possession by the Company.

As per existing land used pattern, land is generally flat and no major earth filling is required for the proposed project.

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4.3 Topology (along with map) The soil of the western part of Burdwan district is of rich alluvial variety and is suitable for intensive cultivation of paddy, wheat, potatoes and other crops and vegetables. The soil of the western part of the district is reddish and is not that fertile. The district of Burdwan is extremely fortunate in being girdled by three major rivers – the Hooghly on the east, the Ajay on the north and the Damodar on the south. Apart from these three, there are myriads of minor rivers and streams which criss-cross the district.

The aggregate forest area of the district is 21165 hectares and the forests are mainly spread over the western part of the district. The forests mainly comprise Sal and Kendu trees. The main forest products are timber and fuel. The forest areas of the district are chiefly situated in the lateritic and red soil high lands.

4.4 Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ), shortest distance from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from HFL of the river), CRZ. In case of notified industrial area, a copy of the Gazette notification should be given.

All the units shall be accommodated within 262.64 Hectares (649 acres) of land in the existing plant boundary.

There is no national park, wildlife sanctuary/reserve forest exist within 10 km radius of plant.

4.5 Existing Infrastructure

The proposed units would be placed within 262.64 Hectares (649 acres) of land in the existing plant boundary. Most of the facilities are available for setting up of the proposed steel plant such as Electricity, Water, Transportation of raw materials and finished goods etc. skilled and unskilled workers are also easily available within the industrial area.

The project site already has proper road linkage for transport of materials and equipment. Raniganj Railway Station is about 10.0 km from the project site.

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The NH-2 road is passing about 6.0 km away in the South direction and the nearest distance of NH-60 in the SE direction is about 2.6 km with respect to the project site. The nearest Airport is Netaji Subhas Chandra Bose International (NSCBI) Airport, Kolkata, which is about 178 km from the project site. Kolkata city is located at a distance of about 178 km from the project site. Distance from Howrah Railway station to the project site is about 1S75 km. Kolkata Port is around 175 km away and Haldia Port is 209 km away from the Project Site.

4.6 Soil classification The soils of the area have been derived from ferruginous material and shales. The area is a fairly broad band running from east to west, from the Ajoy river, near Churuliathrough , upto · , a tributary of river Damodar. The area belongs to coal bearing Damodar series of Lower Gondwana sediments of middle Precambrian. The soils of the crest are well developed, with argillic horizon. But because of convex topography and susceptibility to erosion, the soils have moderate depth. These are well drained soils Taxonomically, these soils belong to soil family of fine, mixed, hyperthermic Typic Haplustalfs. All these soils have subangular blocky structure at the surface and angular blocky in the subsurface horizons. Weathered parent material mixed with soil and iron concretions has been observed at a depth of 74 cm. The area is occasionally cultivated. They are mostly cultivated for crops like paddy and wheat. This soils are of Madhudanga and Jamuria series. The western portion made up of hard rocks has a higher elevation than the eastern portion which is covered by an alluvial blanket Geologically too, the Gondwana strata has ageneral southern dip varying from 5° to 25n. Archean rocks have been exposed to form isolated hillock and pediment in the extreme north west. They have a loamy and sandy loamy cover. From the north western extreme the land slopes south eastwards first with a moderate slope and then a gentle slope. The soil cover here varies from clay loam to clay. Further east, and in the central portion of the study area is the toe slope which has a soil cover varying between sandy clay loam to clay. The alluvial blanket in the extreme east is made of soil varying between sandy clay loam to clay loam. Soils in the area are mostly sandy loam with clay in texture and hence contain large percentage of silt and sand and hence possess medium water holding capacity. The soil in the immediate vicinity of the project is loamy silt. Only in areas close to rivers, soils are sandy silt. Alluvial soils are often very fertile.

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4.7 Climate data from secondary sources

The meteorological data described from the IMD Station located at Durgapur, which is around 12 km. from the Project Site and deemed to be representative of the study area. The station is observed to be well manned and equipped.

Temperature At Durgapur, the overall mean dry bulb temperature for the past 13 years’ period (1971 – 1985) was recorded 26.3oC in day time and 28.1oC in night time while the overall mean wet bulb temperature for the past 30 years’ period (1971 – 2000) was recorded 22.5oC in day time and 23.2oC in night time.

Relative Humidity Humidity was fairly high through the major part of the year at Durgapur. In day time the overall mean relatively humidity was 70% while in night time it was 66%. The mean relative humidity of Monsoon and Post monsoon seasons was ranging between 68% - 84% in day time and 64% - 81% in night tine. The mean relative humidity of summer and winter seasons was ranging between 53% - 67% in day time and 45% - 62% in night time. From these 13 years’ IMD data it was found that the relative humidity was fairly very high in Monsoon season (June, July, August, and September).

Rainfall and Rainy Days The total annual mean rainfall received is about 1910.2 mm at Durgapur. Rainfall was peaked during the month of July (mean monthly rainfall in July was 600.4 mm). The lowest rainfall was occurred during the month of January (mean monthly rainfall in January was 7.7 mm). Total annual mean number of rainy days was about 68.1 in Durgapur.

Cloud Cover The mean monthly data revealed that the cloud cover in day time ranged between 1.1 Oktas (at month of January) to 5.5 Oktas (at month of August) and in time time it ranged between 1.0 Oktas (at month of January) to 5.5 Oktas (at month of July and August). The overall annual mean cloud cover was found 2.7 Oktas in both day and night time.

Wind Speed and Direction The annual mean wind speed is around 7.8 km/hr at Durgapur with the mean monthly wind speed was ranged between 5.1 km/hr (during November) and

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10.1 km/hr (during May) at Durgapur. The predominant wind direction was observed South-West, followed by North and South.

4.8 Social Infrastructure available. All infrastructure facilities such as Education, Health facilities and other Social facilities are adequate at Burdwan, Jamuria, Raniganj town which is around 10 KM from the proposed project site. Entire area is enjoying the modern facilities.

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5 Planning Brief

5.1 Planning concept (type of industry, facilities, transportation etc), town and country planning/ development authority classification.

During planning phase of the proposed project the following steps will be carried out: ▪ Feasibility studies ▪ Technical appraisal and due diligence ▪ Project development planning, permitting and consenting ▪ Environmental audits and impact assessments ▪ Financial and thermal modelling, business planning ▪ Tariff studies, power purchase agreement ▪ Conceptual and pre-engineering design ▪ Implementation planning and cost estimating ▪ Special studies and risk assessment

The rail and road will be developed/ strengthened around the plant for transportation of raw materials. This will also enhance the transportation facilities of the area.

As the project is envisaged to employ direct & indirect employment during construction and operation phase so the basic infrastructure facilities like medical facilities, schools, playground, drinking facilities, bank, post offices etc. will be developed and the same can also be used by nearby villages.

5.2 Population projection The Burdwan district is dominated by rural population. Total workforce in Burdwan is about 31.43% of total population. Looking at the occupational pattern, it is observed that about of the main workers are associated with agriculture and allied activities. The distribution of main workers in other activities, viz. workers in household industries, construction, trade & commerce, transport, communication & storage, mining & quarrying and other services are observed to maintain low proportion although these activities varied widely within in the district. Population density of this district as per the census data 2011 is 1376.53 per sq. km. High growth of population in urban population growth areas is mainly attributed to the migration of people from rural to the urban area in search of employment and other sources of income.

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5.3 Land use planning (breakup along with green belt etc).

All the units shall be accommodated within 262.64 Hectares (649 acres) of land in the existing plant boundary. For unit wise land requirement please refer plant layout map.

5.4 Assessment of Infrastructure Demand (Physical & Social)

Adequate physical and social facilities are available in this area as the proposed plants will be implemented in the existing plant premises.

5.5 Amenities/ Facilities

SSPL will take the initiative to develop the roads of the villages to provide better connectivity to the nearest National highways. Apart from this the following amenities will be developed: ▪ Street Light and Avenue Trees ▪ Well Maintained park with Children’s Play area ▪ Educational Institutions ▪ Primary Health Centres / Hospital ▪ Healthy camps and free medical check-up should be encouraged for local population.

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6 Proposed Infrastructure

6.1 Industrial Area

All the proposed units shall be accommodated within 263.05 Hectares (650 acres) of land in the existing plant boundary.

All facilities of the plant area will be laid out in close proximity to each other to the extent practicable so as to minimize the extent of land required. The layout is also facilitating the movement of men and materials between the various units both during construction and subsequent operation and maintenance to entire project.

The general layout plan of the plant is attached in Annexure – I.

6.2 Residential Area (Non Processing Area)

Residential colony will not be required because most of the workers will be local who will have their residence in nearby areas. The Company has existing guest house where qualified experts/people outsourced will get the accommodation.

6.3 Green Belt Extensive afforestation at plant will be undertaken which would not only act as long space in the area but would also improve aesthetics. Local, fast growing species will be used for Green Belt Development keeping in view the guidelines and directions of MOEF&CC, Govt. of India and W.B.P.C.B as well C.P.C.B. Approximately, 216 acres of land will be used for greenbelt development in the project site.

6.4 Social Infrastructure

Shyam Group understands the role of CSR activity transforming the society at large. As part of its initiatives under CSR, Shyam Group has continued with its welfare activities for development in the fields of education, health, culture and other welfare measures and to improve the general standard of living. It has taken initiative by way of improvements to local physical infrastructure viz. roads, water, medical facilities etc. A technical institute is under development in the vicinity of the plant to impart training and technical knowhow to the local population.

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Full time Doctors have been appointed by the Shyam Group to undertake the regular health checkups and to provide medical support / medicine in the remotest villages of nearby Districts. Charitable Ambulance facility is provided and owned by the organization, which has been utilized dedicatedly to the people residing in the nearby villages of plant site.

Keeping in mind the infrastructure needs of the area SSPL’s key focus is on the following areas ▪ Improving medical facilities in the village around the project area ▪ Improving awareness and providing sufficient training in hygiene , sanitation and proper diet ▪ Encouraging people to send children to school and also educate themselves through adult literacy programs ▪ Improving education infrastructure by providing better teaching aid. ▪ Building skills among villagers as per skills requirements of the project during constructing as well as during the operation time ▪ Encourage entrepreneurial spirit among people and supporting such initiative by conducting training programmes to acquire and enhance skill ▪ Creating awareness about long term financial planning

6.5 Connectivity (Traffic and transportation road/ Rail/ Metro/ Water ways etc) The connectivity of the site to the key logistic/raw material/utility centres has been tabulated below:

Connectivity Details Rail The nearest railway station to the site is Ikrah Junction (1.7 Kms). Other railway stations in close proximity are Raniganj Railway Station (15 Kms) and Asansol Railway Station (25 Kms).

The Company has its own 1.44 Kms railway siding between Tapasi and the project of 1.44 Kms, which is being used for transportation of Raw materials and finished goods. Road The plant is also closely connected with highway. The unit is located about 8 kms from Grand Trunk Road which provides easy and good transport connectivity. Airport The nearest airport is Kazi Nazrul Islam Airport, Durgapur (26 Kms), Panagarh Airport (45 Kms) and Dhanbad Airport (87 Kms).

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Town/ Cities The nearest Town/ Cities to the site are: Jamuria – 6 Kms Raniganj – 13 Kms Ballavpur – 15 Kms Ratibati – 19 Kms

6.6 Drinking Water Management (Source & Supply of water) In the proposed project around 107 m3/day of water is required for domestic purpose which will be sourced from Ajay River / ADDA supply. The water shall be filtered.

6.7 Sewerage System Sewage from the various building in the plant will be routed through sewage treatment plant (STP) and treated waste water will be used for green belt development within the premises.

Sewage treatment plant (STP) based on SBR technology is proposed to be set- up in the proposed project. A well-designed sewer network will collect wastewater from different sections of the plant area. The sewer network will convey the wastewater into the proposed STP.

STP Details The proposed STP will be designed for treatment of raw sewage during operation phase to maintain the desired quality of treated wastewater. The expected characteristics of raw sewage are as follows:

Sr. No. Parameter Concentration 1. pH 6.5 – 8.5 2. Suspended solids 200 – 250 mg/l 3. BOD 250 – 300 mg/l

The expected characteristics of the treated sewage on adopting the scheme of treatment are as follows:

Sr. No. Parameter Concentration 1. pH 6.5 – 8.0 2. BOD <5 mg/l 3. TSS <10 mg/l

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Wastewater will be collected through a well-designed sewer network leading to the proposed STP. The STP will be based on SBR Technology (Sequential Batch Reactor) followed by tertiary treatment. Treated wastewater will be used within the project site for greenery purpose.

SBR technology is a fill and draw activated sludge treatment technology.

The process is identical to the conventional activated sludge process. SBR is a compact and time oriented system. The process is carried out sequentially in the same tank.

SBR is an upgraded conversion of conventional activated sludge process and is capable of removing nutrients from waste water besides very stable sludge characteristics because of cyclic process.

SBR system performs operations based on time frame rather than space since conventional activated sludge process requires more space. Housed in a single unit the reactor can accomplish biological treatment and secondary clarifications with a time controlled sequence thus achieving reasonably good outlet parameters after secondary pretreatment and thus eliminating need of multiple tanks or expensive membrane for treatment. This process achieves high quality of treated water with low nutrients levels ready for recycling.

The chain will comprise of Fill, Aerate, Settle and Decant stages.

The core of plant is reactor with sewage feed and treated water outlet. This reactor can be pre-engineered for different hydraulic and organic load capacities, modular design and can be constructed in RCC/ pre-fab steel/ plastic and FRP tanks.

SBR is a unique feature of very stable sludge characteristic and enhanced biological nutrient removal. The technology has advantages working on low cost of maintenance, operation and initial cost still most suitable and effective on the performances and meets all relevant standards and norms.

The Layout of the proposed STP is presented in Figure- 10.0.

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FIGURE – 10.0 : PROPOSED SEWAGE TREATMENT PLANT (STP)

6.8 Industrial Waste Water Management The prevention and control of water pollution aim at conserving make-up water by recycling the wastewater after treatment. The wastewater, likely to be generated from the proposed plant is:

• Underflow from Raw Water Clariflocculator • Backwash Waste from Filtration Plant • Run-off water from Raw Material Storage Yards • Cooling Tower & Boiler Blow-down • Canteen Effluents

Sludge from Raw Water Clariflocculator and Backwash from Filtration Plant will be led to a thickener for removing suspended solids. The overflow from the thickener will be reused in the plant water system. The Sludge from the thickener will be dried and dumped.

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Cooling Tower & Boiler Blow-down from various recirculation systems will be cascaded for reuse in Ash Handling, gardening and dust suppression.

Efforts will be made to harvest rainwater in the plant. Run-off water from the office areas, shop roofs will be collected and stored for future use.

The plant will be designed as a zero discharge plant as far as the process effluents are concerned. The water will be recirculated through cooling and treatment. No plant effluent will be discharged outside the plant premises. The entire waste water will be recycled for various purposes inside the plant.

Domestic effluent from the various buildings / sheds of the plant will be conveyed through separate drains to STP. The treated waste water from STP will be used in Greenery purpose.

The lists of water pollution control systems envisaged are summarized below,

List of Water Pollution Control Systems

Source Pollutants Control System Raw material handling Surface runoff Catch Pits (to recover yard containing free the minerals from minerals too as sedimentation and suspended Solids reuse.) Raw Water Treatment Suspended Solids Clarifier, Thickener, Plant along with Biomass Sludge Pond. Cooling Tower & Temperature, Reused in the plant area. Boiler Blow down Dissolved Solids, Free Cl and TSS Canteens, Toilets BOD, O & G, Septic Tank-Soak Pit TSS/TDS. system

6.9 Solid Waste Management

➢ Blast Furnace Slag will be used in the proposed Cement Plant.

➢ The hot slag generated from Induction Furnaces and Electrical Arc Furnaces will be transferred to slag yard after cooling and scrap recovery. It will be used for road making / land filling purposes.

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➢ Dolochar from proposed DRI Kilns will be used in existing CFBC Boilers. ➢ Dust as collected from APC devices from Pellet Plant, Sinter Plant, Cement Grinding Unit will be used in the respective unit. ➢ Tar from Producer gas plant will be sold to the buyers and have good demand for construction of roads. ➢ Solid wastes from CCM (viz, scales) and rolling mill (end cuts and miss rolls) will be used in Induction Furnaces.

6.10 Power requirement & supply/ source

Total power requirement of the entire project will be around 232 MW after total expansion (Existing Units: 53.5 MW; Units being Implemented: 62.5 MW & Proposed Units: 116 MW), which will be sourced from Captive Power Plant & State Grid. Unit wise power demand is presented in Figure – 11.0.

FIGURE – 11.0 : UNITWISE POWER DEMAND

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7 Rehabiliation and Resettlement Plan

7.1 Policy to be adopted (Central/ State) in respect of the project affected persons including home oustees, land oustees and landless laborers.

All the above units shall be accommodated within 262.64 Hectares (649 acres) of land in the existing plant boundary, which is already in possession by Shyam Group in the name of M/s Shyam Sel & Power Ltd.

There is no residential habitat, so Rehabilitation and Resettlements (R&R) plant is not required.

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8 Project Schedule & Cost Estimates

8.1 Likely date of start of construction and likely date of completion.

The installation of several production units along with utilities and services will involve award of all contracts, procurement of plant and equipment, construction & erection and supervision of all activities at plant site.

The factors which are responsible for timely implementation of the project are:

• Arrangement of proper finance for the project. • Finalization of layout of the proposed plant. • Design of utilities and services. • Placement of orders for plant and machinery. • Arrangements for Govt. sanctions and supply of power. • Recruitment of personnel.

As per an initial estimate around 60 months will be needed for implementation of the Expansion Phase of the project.

8.2 Estimated project cost along with analysis in terms of economic viability of the project.

The Capital costs have been worked out on the basis of prices prevailing today and do not include any provision for future escalation in costs during implementation period. The various assumptions are made while estimating the capital cost estimation. The cost estimate is based on the data available from similar type of steel projects. The Estimated cost break up is given below:

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Captive Coke Producer Cost of the Power Pellet DRI Rolling Blast Oven Ductile Cement Gas Grand Project Plant Plant Plant SMS Mill Furnace Sinter Plant Iron Plant Plant Total Sl. 1.2 4x350 0.85 0.3 0.1 1.2 (in Capacity 45 MW MTPA TPD 1x450m3 MTPA MTPA MTPA MTPA Crores) 1 Land 6.75 7.2 15.75 9.9 6.75 6.75 3.15 6.75 11.7 14.4 1.8 90.90 Cost of Civil 2 Construction 16.53 48.34 60.93 33.52 20.93 64.74 38.18 9.18 38.15 49.04 4.25 383.80 Plant and 3 Machinery 135.44 123.40 51.55 102.69 40.58 102.39 68.91 96.73 33.55 80.46 13.75 849.44 Miscellaneous 4 Fixed Assets 8.58 26.04 1.45 17.45 17.25 10.37 8.60 8.20 3.35 8.75 2.50 112.55 Total Hard Cost (A) 160.55 197.78 113.93 153.65 78.76 177.50 115.69 114.12 75.05 138.25 20.50 1345.79 Preliminary & Preoperative 5 expenses 6.42 7.91 4.56 6.15 3.15 7.10 4.63 4.56 3.00 5.53 0.82 53.83 Contingencies (5% of hard 6 cost) 8.03 9.89 5.70 7.68 3.94 8.88 5.78 5.71 3.75 6.91 1.03 67.29 Margin Money for Working 7 Capital 94.21 Total Soft Cost (B) 14.45 17.80 10.25 13.83 7.09 15.98 10.41 10.27 6.75 12.44 1.85 215.33 Grand Total Cost (A)+(B) 174.99 215.58 124.18 167.48 85.85 193.48 126.11 124.39 81.80 150.69 22.35 1652.01

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9 Analysis of Proposal

9.1 Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area.

Proximity of the project location is an advantage with respect to sustainable growth of the Group. The financial viability also shows a good Internal rate of return from the project. Considering the above, company is planning to go- ahead with the project, once it gets all the statutory approvals.

The following will be the benefits to local people:

▪ Employment: Preference will be given for locals for employment based on qualification & requirement.

▪ Medical facilities: Medical facilities will be provided for employees as well as people of nearby villages.

▪ Educational facilities: Basic educational and vocational facilities will be provided for the children of employees as well as nearby villagers.

▪ Infrastructure facilities: Approach roads will be developed at par with plant roads

▪ Additional Facilities: The establishment of project will facilitate additional auxiliary facilities like banking, post office & recreation facilities etc.

▪ Overall quality of life: The overall quality of life of the people will improve due to better means of transportation and communication. As a result, mobility will increase, which will substantially increase job opportunities. The social exposure of the villagers will be enhanced and will be able to related better to the outside world.

Pre-feasibility Report