Pre-Feasibility Report

Pre-feasibility Report

For

Installation of Induction Furnace, Rolling Mill& Submerged Arc Furnace for production of ingots, Billets 5,00,000 TPA, TMT & Long product : 5,00,000 TPA and Ferro alloys 25,000 TPA

Project by M/s Lloyds Metals and Energy Limited. At Plot A-1 and A-2, MIDC Area, Ghugus, Chandrapur, Maharashtra.

Contents 1. Executive Summary ...... 5 2.1 Identification of project and project proponent ...... 7 2.2 Brief description of nature of the project ...... 7 2.3 Need of the project its importance to the country and or region ...... 7 2.4 Demand Supply Gap ...... 8 2.5 Domestic/Export Markets ...... 8 2.6 Employment Generation(Direct and Indirect) ...... 9 3.0 Project Description ...... 9 3.1 Type of project ...... 9 3.2 General Location ...... 10 3.3 Details of alternate sites considered ...... 12 3.4 Size or Magnitude of Operation ...... 13 3.5 Manufacturing Process...... 14 3.6 Raw Material Requirement ...... 17 3.7 Water Requirement and Source...... 18 3.8 Power Requirement ...... 19 3.9 Environmental Impact and Mitigation Measures ...... 19 3.9.1 Air Environment ...... 19 3.9.2 Noise Pollution Control ...... 20 3.9.3 Impact on Water ...... 21 3.9.4 Solid Waste Generation ...... 21 A slag crusher will be installed to crush slag. Iron particles will be separated by using Magnetic Separator. These iron particles will be reused in Induction Furnace. Solid waste generation and its mitigation measures are as follows.Waste ...... 22 Quantity ...... 22 Mitigation Measures ...... 22 Slag ...... 22 49200TPA ...... 22 A slag crusher will be installed to crush slag. Iron particles will be separated by using Magnetic Separator. These iron particles will be reused in Induction Furnace...... 22 The slag generated from Induction Furnace will be non-hazardous and non-toxic in nature...... 22 Initially this will be used for levelling of Plot. It will be used for hardening of working area & construction of internal roads...... 22 In future possibilities will be explored to use slag for construction of internal village roads...... 22

Tail cutting ...... 22 100% reuse in Induction Furnace ...... 22 Ash ...... 22 Max. 420 TPA ...... 22 Ash will be used for brick manufacturing, for which the market already exists...... 22 Ferro / Silico Manganese Slag ...... 22 3744 TPA ...... 22 100% Ferro manganese slag will be used in Plant for production of Silico manganese...... 22 4.0 Site Analysis ...... 23 4.1 Connectivity ...... 23 4.2 Land Form ...... 23 4.3 Topography ...... 23 4.4 Existing land use pattern ...... 23 4.5 Environmental Setting of the project ...... 24 4.6 Soil Classification ...... 24 4.7 Climatic data from Secondary Sources ...... 24 4.8 Social Infrastructure available ...... 24 5.0 Planning Brief ...... 25 5.1 Planning Concept ...... 25 5.2 Population Projection ...... 25 5.3 Land use planning ...... 25 5.4 Assessment of Infrastructure Demand ...... 25 5.5 Amenities/Facilities ...... 25 6.0 Proposed Infrastructure ...... 26 6.1 Industrial Area (processing area) ...... 26 6.2 Residential Area (non processing area)...... 26 6.3 Green belt ...... 26 6.4 Social Infrastructure ...... 26 6.5 Connectivity (Traffic and Transportation Road/Rail/Metro/Water ways etc.) ...... 26 6.6 Drinking Water Management (Source & Supply of Water) ...... 26 6.7 Sewerage System ...... 26 6.8 Industrial Waste Management ...... 26 6.9 Solid Waste Management ...... 26 6.10 Power Requirement & Supply/Source ...... 27 7.0 Rehabilitation and Resettlement (R & R) Plan ...... 27 8.0 Project Schedule & Cost Estimates...... 27 8.1 Likely date of start of construction and likely date of completion (Time schedule for the project to be given) ...... 27

8.2 Estimated project cost along with analysis in terms of economic viability of the project ....27 9.0 Analysis of Proposal Final Recommendations ...... 27

Tables Table 1 Environmental Setting of Study Area ...... 11 Table 2Raw Material Requirement ...... 17 Table 3 Water Requirement and its Breakup ...... 18

Figure Figure 1 Topoghraphical Map (10 km Radius ...... 11 Figure 2 Location on Google Earth...... 11 Figure 3PROCESS FLOW CHART OF INDUCTION ...... 16 Figure 4 Process Flow Diagram of Rolling Mill ...... 16 Figure 5 Manufacturing Process of Ferro Alloys ...... 17

1. Executive Summary

Proposed Induction Furnace ,Rolling Mill and Submerged Arc furnace will be installed in M/s Lloyd and Metal and Energy Limited, located at Plot A-1 and A-2, MIDC Area, Ghugus, Chandrapur, Maharashtra. Total land leased by MIDC for this project to Lloyds Metals & Energy Limited (LMEL) is 93.52 hectare in which plot no. A-1 is 4.00 Ha & A- 2 is 89.52 Ha MIDC. The proposed site is accessible by State Highway No. 6 at crow fly distance of 1.0 km in N. Nearest Railway Station is Ghugus about 2.5 Km in NW direction and nearest Airport is Sonegaon Airport about 127 Km in N direction from existing Site as crow flies. Nearest City is Chandrapur located at a crow fly distance of about 17.5 km in E direction of the existing site. Wardha River is 2.5 km away towards South West direction. Proposed project cost estimated is of Rs. 760 Crores.

The major raw material required for the Proposed Induction Furnace and Rolling Mill are Sponge Iron, Metal Scraps, Billets, Coal, etc.

Proposed Induction Furnace for manufacturing ingots, Billets 5,00,000 TPA, Rolling Mill for hot rolled long products and TMT 5,00,000 TPA and Submerged Arc furnace to produced Ferro Alloys 25,000 TPA will be located at MIDC Ghugus, Chandrapur, Maharashtra. The existing plant having manufacturing of 27000 TPM sponge iron, 4000 TPM of Char (By Product) (Intermediate), 472500 TPA of Washed coal, 159375 TPA of Unwashed coal 15000 TPA of Low Grade coal and 25 MW Electricity Generation [WHRB +AFBC (for back up) ]. AFBC boiler will be used as backup when kilns are not in operation.

Fugitive dust will be controlled by providing pulse jet bag filters to all transfer points. Water requirement for the project will be sourced from Wardha River. Effluent generated will be treated and used for green belt development.

Suitable plant species will be planted all along the internal road, raw material storage & handling, ash/dust prone areas. It is planned to plant saplings considering the parameters as type, height, leaf area, growing nature, water requirement etc.

2. Introduction of the project/Background information

Project at a Glance

Sr. No. Particular Details 1 Project Authority M/s Lloyds Metals and Energy Limited. 2 Location Plot No. A1 and A2, MIDC Area, Ghugus, Chandrapur, Maharashtra Latitude :19°55'52.87"N Longitude: 79° 7'12.18"E 3 Nearest Major Towns Chandapur: 17.5km (N) 4 Seismic Zone Zone-II as per IS 1893-1984. 5 Project site connectivity SH6: 1.0Km(N) Ghugus Railway Station:2.5Km(NW) Nagpur Airport:127Km(N) 6 Raw Material M.S. Scrap : 144000 TPA Requirement Sponge Iron : 396000 TPA (resourced from our DRI plants at Ghugus and Konsari) Billets : 504000 TPA Coal : 7200 TPA Manganese Ore: 25200 TPA Coke : 37800 TPA Carbon Paste : 780 TPA Quartz : 25200 TPA Dolomite : 4200 TPA 7 Water Total water requirement for the proposed project will be about 260 KLD. Source of water will be Wardha River. 8 Land for proposed plant Total 2.5 Ha land is available for proposed project. The land is notified for industrial use and land is leased by MIDC. Requisite land is presently available with us. 9 Power Requirement The power required for the proposed project will be 35 MW which will be sourced from 25MW own power plant & MSEDCL. 10 Employment Generation The proposed project creates employment for 750 people. 11 Environmental Aspects Air Pollution Control: Venturi Scrubbers, Bag Filters followed by Stack to control source emission. Water sprayer is proposed for dust suppression in different unit, internal roads, coal stock area etc. to control Fugitive emission. Water Pollution Control: The process water is 100% recirculated after proper treatment: The domestic wastewater is treated in proposed packaged type STP and treated water will be used for greenbelt development. RWH structures will be provided to harvest the rain water around the plant area and roof top. Solid Waste: A slag crusher will be installed to crush slag. Iron particles will be separated by using Magnetic Separator. . These iron particles will be reused in Induction Furnace. 12 Project Cost Total Cost of Project is Rs. 760 Crores.

2.1 Identification of project and project proponent M/s. Lloyds groups started with the modest beginning with fabrication unit in the year 1974 and thereafter expanded rapidly. The rapid growth has been resulted with backward and forward integration within the group companies and using modern technology so to bring in high levels of efficiency. Lloyds Metals and Energy Limited (LMEL), one of the biggest Sponge Iron manufacturers in Vidarbha region is a unit of Lloyds group. LEML had initially set up its first 500 TPD kiln with the rated capacity of 1,50,000 TPA by opting OSIL-Technology in the year 1994-95 at the village-Ghugus, District- Chandrapur (Maharashtra). Experiencing various technical constraints with deterioration in their inputs quality, LMEL has opted for conversion of its 500 TPD kiln from OSIL technology to well proven Lurgi technology in the year 2008. Later the unit has expanded by installing 4 X 100 TPD kilns(with Lurgi technology) in the year 2006 and 25MW thermal power plant. 2.2 Brief description of nature of the project As per EIA Notification 2006 the proposed Secondary Steel Plant falls under Schedule in serial No. 3 (a) - Metallurgical Industry (ferrous & non- ferrous). Based on lease area and general conditions mentioned in the schedule of EIA Notification, the project is categorized as Category ‘A’.

2.3 Need of the project its importance to the country and or region Due to rapid industrial & infrastructure development there is constant increase in need of sponge iron, steel & alloys steel in the market. Steel products are used by the large section of the public such as industrial establishments, schools colleges, farmers, agriculturists, builders and general public at large. The sponge iron from plant of LMEL will be a major raw material to proposed project. Proposed Induction Furnace for manufacturing of ingots, Billets 5,00,000 TPA ,Rolling Mill for hot rolled long products and TMT 5,00,000 TPA and Submerged arc furnace for ferro alloys 25,000 TPA. Proposed Plant is located at Plot A-1 and A-2, MIDC Area, Ghugus, Chandrapur, Maharashtra.

2.4 Demand Supply Gap Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries. The Indian steel sector enjoys advantages of domestic availability of raw materials and cheap labour. Iron ore is also available in abundant quantities. This provides major cost advantage to the domestic steel industry. The Indian steel industry is largely iron-based through the blast furnace (BF) or the direct reduced iron (DRI) route. About 60% of the crude steel capacity is resident with integrated steel producers (ISP). But the changing ratio of hot metal to crude steel production indicates the increasing presence of secondary steel producers (non integrated steel producers) manufacturing steel through scrap route, enhancing their dependence on imported raw material. World crude steel production was 1547 million tonnes (MT) in 2012, as per World Steel Association (WSA). China accounted for 46% of the world's total crude steel production in 2012, reaching 716.5 MT. During 2012, India maintained its ranking as the 4th largest steel producing country in the world behind China, Japan and the US with a crude steel production of 76.7 MT. Global advisory firm Ernst & Young in its recent study said that India's steel consumption would grow by over 5% in the calendar year 2014 to 83 million tonnes compared with 79 million tonnes the country consumed in the previous calendar year.

In general there is demand of steel products in the region as well as country and its demand is increasing day by day due to developmental activities. The supply of steel is solely depends on the steel producing industries in India. This Vidarbha region can be a significant contributor in supply of steel in India due to abundantly available resources in the region. The proposed Ferro Alloys, SMS and Rolling Millis part of it and it can be helpful in fulfilling the supply-demand gap due to rapidly increasing demand on regular basis. 2.5 Domestic/Export Markets The market in India for steel and alloy steel is well established and regular demand is fulfilled to the possible extent by the various steel manufacturing units in the country. The Indian steel industry continued to showcase trends of higher consumption of finished steel and continued to be a net importer on account of increased demand for special grades of steel in the country. India's current per capita finished steel consumption at 57 kg is well below the world average of 217 kg. With rising income levels expected to make steel increasingly affordable, there is vast scope for increasing per capita consumption of steel.

India is going to turn into a net exporter of steel in FY14. A weak currency and slowing exports from China are expected to aid Indian exports. China is slated to cut steel capacity. China is estimated to have exported 52 million tonnes of steel in 2013 and this is expected to decline by 11 million tonnes by FY15 to 41 million tonnes. This would be an opportunity for Indian steel makers. With global demand for steel increasing and China cutting exports, Indian steel makers have very good chances of steel 2.6 Employment Generation(Direct and Indirect) For the operation of proposed project direct & indirect employment requirement on regular basis will be about 750 persons.

3.0 Project Description

3.1 Type of project

Proposed Induction Furnace for manufacturing ingots, Billets 5,00,000 TPA and Rolling Mill for hot rolled long products & TMT 5,00,000 TPA and Ferro Alloys 25,000 TPA will be located at Plot No. A-1 & A-2.

Sr. Products Proposed Unit Proposed Capacity Total No. Production 1. Ingots/ Billets Induction 5,00,000 TPA 5,00,000 TPA Furnace

2. Hot rolled long Rolling Mills 5,00,000 TPA 5,00,000 TPA product / TMT 3. Ferro Alloys Submerged Arc 25,000 TPA 25,000 (Silico Manganese, Furnace Ferro Silicon, Ferro Manganese)

3.2 General Location

Source: mapsofindia.com

Figure 1Topoghraphical Map (10 km Radius

Figure 2 Location on Google Earth

S N RESIDENTIAL AREA OF GHUGUS ACC AREA E

ACC AREA

ACC ROAD

RAILWAY LINE FOR ACC

LMEL FENCING LINE LMEL FENCING LINE

WATER POND PLANTATION

G-17 GOVERMENT HOSPITAL AREA PROPOSED TRUCK MSETCL LMEL EXISTING BOUNDARY PARKING MTR.3.5 PUMP RAW MATERIAL ROAD SUB STATION ACC VETENARY HOSPITAL AREA TRUCK LMEL EXISTING HOUSE BOUNDARY RAW MATERIAL ROAD HIGH MAST LMEL EXISTING SWITCH YARD PARKING MTR.3 EXISTING CULVERT GANESH PROPOSED ROAD BOUNDARY TOWER-2 LMEL EXISTING MTR.1.5 AREA GATE 7 MTR. WIDE TEMPLE BOUNDARY

2500 SQ.FT RAW MATERIAL ROAD 6 mtr. WIDE PROPOSED GATE

ELECTRICAL LINE

PLATFORM PROPOSED RAW MATERIAL ROAD 6 mtr. WIDE C-20 OFFICE CHANDANI PROPOSED 10 MTR. PROPOSED TRUCK TEMPLE C-19 LAWN PARKING PLATFORM E NT ER ANCE CHOWK EXISTING CULVERT RAW MATERIAL ROAD 6 mtr. WIDE LAWN

S EC. P OST LMEL EXISTING LMEL EXISTING MAIN GATE LMEL EXISTING EXISTING CONCRETE ROAD RCC DIVIDER BOUNDARY WALL EXISTING CULVERT BOUNDARY WALL C-21

LMEL EXISTING BOUNDARY WALL LMEL EXISTING BOUNDARY WALL TIME OFFICE HIGH MAST TOWER-1 TRUCK PARKING

DRIVER DRAIN AREA REST AREA POWER PLANT

OLD SWITCH ADMN BUILDING STP SWITCHYARD YARD TANK PLANTATION DISPATCH ROAD6 mtr. WIDE TRUCK PARKING RESIDENTIAL DRAIN AREA ROAD

RAW MATERIAL ROAD RAWMATERIAL TOWER NO.-1 CAR PARKING TOWER NO.-2 RESIDENTIAL AREA ROAD 4 mtr. WIDE OF GHUGUS ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE

C-17 C-18 CYCLE STAND Compressor DISPENSARY QUALITY House FOR FIRST AID CONTROL

BUILD. ROAD 4 mtr. WIDE 4mtr. ROAD

LDO TAANK WIDE 4mtr. ROAD TRANSFER CYCLE STAND 33 HOUSE

2B BC-3166 ROAD 4 mtr. WIDE 4mtr. ROAD PROPOSED RCC FLOORING DE-5 BC-286 DISPATCH ROAD BC-184 FOR IRON ORE YARD AREA BC-3160 BC-27 14 TOWER NO.-3

( AREA = 5200 M² ) BC-1

BC-3162 C-3 RAM ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE

ROAD 4 mtr. WIDE C HIMNEY C-01

C-2 BC-4108

BC-2 BC-28

15 (BC-0168) BC-2a BC-3 RAM DE-7 WIDE 4mtr. ROAD

BC-168 A WIDE 4mtr. ROAD TOWER NO.-4 DE-4 35 2C DE-6 ROAD 3 mtr. WIDE mtr. 3 ROAD DRI SHED

2D 2E BC-35 DRAIN WATCH AAQMS TOWER-2 ID FAN-4 ID FAN-3 BUILD. TRUCKTRIPPLER ID FAN-2 ID FAN-1

C-7 ESP-4 ESP-3 LVL.+193.500

ESP-2 ESP-1 WIDE mtr. 3 ROAD (BC-0122) ROAD 3 mtr. WIDE mtr. 3 ROAD LOCATION OF SUBMERGED 2 (BC-0118) P

SCRAP YARD 86A 86 86B 86C BC-7 TOWARDS BC-8 (BC-0124) ARC FURNACE P 2A C-4 DRAIN

2 164,9

DUMP YARD BC-4160

TOWARDS DISPATCH ROAD6 mtr. WIDE

BC-6 BC-5 DUMP YARD ROAD ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE ROAD 4 mtr. WIDE C-5 DE-9 GATE C-6 DRAIN CR-2 BUILD. BC-5a BC-7a

LMEL FENCING LINE LVL.+194.500 WIDE 4mtr. ROAD BC-6a BC-8a

SAPRA GARAGE WIDE 4mtr. ROAD DRAIN

E 452.296

S 261.744

BC-0278 BC-0278

T.G.BUILDING (PHASE-I) CPP OPEN

ROAD 3 mtr. WIDE mtr. 3 ROAD STORE YARD

GANESH PROPOSED RCC FLOORING WIDE mtr. 3 ROAD ROAD 4 mtr. WIDE 4mtr. ROAD

FOR COAL YARD AREA 85 CPP L ABO RAT E RY BUILDING PROPOSED DRI CONEYING BELT FOR SMS 85A 85B 85C 95

TOWARDSCOAL YARD 5

BC-13

TEMPLE ( AREA = 1200 M² ) BC-12 ROAD 4 mtr. WIDE 4mtr. ROAD

BC-11

BC-10 QR CONV. PQ CONV. BC-0252 BC-10a BC-12a

BC-11a BC-13a DEDUS TI NG

UNI T- DE-8 CDCONV. AB CONV. BC CONV.

BC-14 87

AB-1AB-1 CONV. CONV. CONV. CONV. 87B C-8 BC-15 40 (BC-0248) DE-11 (BC-0218) (BC-0244) 4 (BC-0208) 94 DE-14 ASH SILO DE-2 3 3A 87A 87C FOR POWER PLANT

REJECT CONVEYOR REJECT C-10 CONVEYOR BELT C-9 FOR COALFINES DE-12 C-11 BC-23

(20M LONGWIDTH) 4M (20M X DE-15 MT100 WEIGH BRIDGE 99 EXISTING CONV.GALLERY OF BC-1 BC-2 BC-30 HEIGHT - 10 MTR.

BC-1 TRANSFER HOUSE HIGH MAST OF BC-1 & BC-2 C-15 TOWER-6

HIGH MAST BC-I BC-III PUMP TOWER-4 ROOM BC-II 100TPD GROUND TUNNEL COOOLING TOWER DISPATCH ROAD 6 mtr. WIDE COAL SHED

TOWER NO.-5 ASH SILO DE-12

DISPATCH ROAD 6 mtr. WIDE DISPATCH ROAD 6 mtr. WIDE

15 MTR. 25 MTR. PROPOSED DRI CONEYING BELT FOR SMS PROPOSED PROPOSED DISPATCH ROAD DISPATCH ROAD BRICK PLANT 2

PLANTATION

75 MTR. 75

SIZEMTR. MTR.-15 75 X SHED FOR SHEDSCRAP FOR 1

EXISTING DRAIN LINE

200 MTR. 200 PROPOSED CONSTRUCTION

BOUNDARY /FENCING LINE

EXISTING ROAD

FURNACE 300 MTR.

C-0 CAMERA LOCATION

PROPOSEDINDUCTION SIZE- 25 MTR. MTR. 200 X PROPOSED ROLLING MILL 4 SIZE - 20 MTR. X 300 MTR.

20 MTR. 20 WATCH TOWER = 2 NOS

PROPOSED ROLLING MILL 3 SIZE - 25 MTR. X 375 MTR.

MAST LIGHTING TOWER = 6 NOS 25 MTR. 25

375 MTR. PLANTATION AREA

LLOYDS METALS & ENERGY LTD.

AREA LMEL FENCING LINE PRAKASH PLANT LAYOUT FOR A1 & A2 PLOT MIDC AREA -93.52 HECT. APPOX. PROPOSED SMS & GEPL PLANT AREA .GARDENING AREA - 30.86 HECT. APPOX. ROLLING MILL

Figure 3 Plant Layout

Table 1 Environmental Setting of Study Area

Area Name Aerial distance Nearest Habitation Village:Ghugus 0.5 Km (N) Road SH:6 1.0Km(N) Railway Station Tadali Railway Station : 13Km(NE) Town Chandrapur Airport Nagpur Air Port 127Km(N) Nearest Water Body Wardha River 2.5 Km (SW) NirgudaNala 3.0 Km (SSW) Penganga River 5.0 Km (SE) KhadkiaNala 4.0 Km (SW) SaraiNala 6.5 Km (NE) Areas used by protected, None important or sensitive species of flora or fauna for breeding, nesting, foraging, resting, over wintering, migration National Park/Sanctuary None Biosphere Reserve None Forest(RF/PF) Pardi Reserved Forest : 6.0 Km (SW)

Archaeological Site None Defense Installation None Areas occupied by sensitive Yes There are school and Hospital man-made land uses within 10Km radius from the (hospitals, schools, places of project site. worship, community facilities)

3.3 Details of alternate sites considered

The identified site for proposed project is considered to take advantages of the inherent features and infrastructures of site like  Adequate transportation facilities are available for transportation of product to financial capital of country Mumbai and other important parts as well.  There are no National Park/Sanctuaries within 10Km radius  There are no historical places/places of tourist importance within 10km radius.  Nearest village Mahadulais situated at a distance 1.0 km from proposed site.  No forest land is involved in the site  No R & R is involved for proposed installation.

By installing proposed project, LMEL is planning to increase the economy and to earn greater revenue by selling steel products. Hence the proposed project will be beneficial and techno-economically feasible. Hence, no alternative site is analyzed.

3.4 Size or Magnitude of Operation The proposed project is a large scale unit and Govt. of Maharashtra has given the mega status. All priority sanctions and concessions will be given by Govt. of Maharashtra for implementation of this project.

Proposed Induction Furnace for manufacturing ingots, Billets 5,00,000 TPA, Rolling Mill for hot rolled long products & TMT 5,00,000 TPA and Submerged Arc furnace for production of 25,000 TPA Ferry Alloys of will be located in notified Industrial Area. In the proposed project, Induction Furnace & Rolling Mill for manufacturing rolled steel products. The finished products will be transported through the existing rail and road network. The details of various units of the proposed project with production capacity are given below:- 1. Induction Furnace for manufacturing ingots, Billets 5,00,000 TPA (30 TPH x 6 Nos.) or any equivalent configuration as may be finalized for achieving the targeted production of 5,00,000 TPA, along with Ladle Refining Furnace.. 2. Rolling Mill for hot rolled Long Products & TMT 5,00,000 TPA (2 Nos.) 3. Submerged Arc Furnace for Ferro Alloys (9 MVA X 2) (Silico Manganese, Ferro Silicon, Ferro Manganese) 25,000 TPA.

Sr. Products Proposed Unit Proposed Total No. Capacity Production 1. Ingots/ Billets Induction Furnace 5,00,000 TPA 5,00,000 TPA

2. Hot rolled long product / TMT Rolling Mills 5,00,000 TPA 5,00,000 TPA

Ferro Alloys (Silico Manganese, Submerged Arc 3. 25,000 TPA 25,000 TPA Ferro Silicon, Ferro Manganese) Furnace

3.5 Manufacturing Process. The manufacturing process technologies are indigenous and well established. The details are given below: Steel Melt Shop The steel making process involves melting, refining of direct reduction iron, steel scrap & hot metal in induction furnace using electricity & refining of molten steel in ladle heating furnace thus achieving the desired chemistry of molten steel by addition of alloying elements and heat energy in ladle heating furnace. Melting in Induction Furnace The melting of the sponge iron, steel scrap, ferro alloys will be carried out in induction furnaces using the intense heat generated by electricity. The molten slag generated in the furnace, being lighter than steel, will be removed from the furnace. Each set of induction furnace will have two crucibles. Liquid metal from the furnace will be poured / tapped in preheated refractory lined ladles. Preheating of empty ladles will be carried out by using furnace oil burning. The ladle filled with molten metal will be transferred to SSM Converter. Secondary refining will be carried out in Laddle Refining Furnace. Continuous Caster The continuous caster is a machine that converts liquid steel to solidified billets of size and shape suitable for a rolling mill. The liquid steel is brought to the caster in a refractory lined vessel called a ladle. The machine receives the ladle by two steel arms, called a turret, which can revolve and swing the ladle to the casting position. The turret can carry two ladles at one time and thus facilitate a complete sequence of ladles that permits continuous casting as long as the ladles can be exchanged in time. At the casting position a preheated intermediate vessel called a turndish is brought under the ladle. The function of the turndish is to hold a reservoir of metal for casting and permit exchange of ladles without interrupting casting. The turndish also serves to remove inclusions and is also therefore a necessary metallurgical tool. The turndish has a stopper rod, which sits on the nozzle. The stopper rod lifting controls the steel flow through the nozzle and is in turn controlled by measuring the level of steel in the mould. The liquid steel is let into a water-cooled vertical curved mould and starts solidifying inside the mould. The solidifying bar of steel is pulled out by a dummy bar to start the process and after wards by the solid bar itself. The extraction is accomplished by a set of rolls, which are driven by a variable speed drive. During extraction of the steel bar, the solidifying bar is sprayed by a set of nozzles, which deliver water at a controlled rate. The bar takes distance to solidify and a time depending on the size of the billet (the solid is called a billet or bloom depending on the actual size.). The billet is cut to the desired

14 length after complete solidification and then lifted from the roller table to a turnover cooling bed or pusher cooling bed. (If slow cooling is desired)The billets are now marked inspected and made ready for rolling or for sale to the market as per decision of Marketing.

Rolling Mill. The rolling mill process consists of reheating of the cooled / semi hot billets produced in continuous casting machine to the hot rolling temperature of 1100 to 1200oCby producer gas fired walking hearth furnace. The heated and soaked billets are discharged from the furnace and are rolled into different sizes in a continuous rolling mill. The heated billet material enter the gap between the rotating rolls and gets the shape and size of the opening made by the grooves cut in the pair of rolls. Depending upon the size and shape of the finished product the grooves in the pad of rolls and the number of roll pairs are selected. The shape of the groove in the rolls decides the shape and size of the rolled piece coming out of the rolls. The cross section of the work piece is reduced successively in each pair of rolls and the speed of the succeeding rolls is increased to match the speed of the rolled pieces. The process is purely a mechanical reduction and water is used for cooling the rolls as well as the work pieces. The rolled pieces are cut into required sizes and stacked in the storage area by means of overhead cranes. In the proposed plant rolling mill production will be 5,00,000 TPA. Finished Product will be TMT Bars, either in Coil form or in cut to length form, or Wire rod in bundles as per the decision of the Marketing Team.

Producer Gas Plant The coal received at unit is initially screened manually. Coarse coal is fed into feeder bunker through which it is entered into gasifier. Fine coal dust separated at screen is collected in a bag and it will be consumed for generation of power in AFBC. Gasifier unit has closed chamber in which in the absence of air, coal is burnt on bed. Water is sprinkled over the bed of burning coal thereby eliminating the generation of CO2. The reaction of gas with water creates hydrogen and carbon inter-phase and it generates Producer Gas a mixture of CO & H2O. Through Gasifier Unit, no emissions are allowed to discharge in to atmosphere as it is basically fuel producer gas.

Mild steel scrap + Sponge Iron + Ferro Alloys Stack ht. 30 m.

Induction Furnace APCD (De-dusting Equipment and Molten Metal ToLaddle Venturi Scrubber)

Continuous Casting Machine

Billets

Figure 3 PROCESS FLOW CHART OF INDUCTION

Figure 4 Process Flow Diagram of Rolling Mill

Figure 5 Manufacturing Process of Ferro Alloys

3.6 Raw Material Requirement

The major raw material required for the Proposed Induction Furnace, Rolling Mill and Submerged Arc Furnace are Sponge Iron, Metal Scraps, Billets, Coal and Manganese Ore etc. The raw material requirement is given in Table

Table 2: Raw Material Requirement

Sr. Name of the Raw Material Requirement No. Product in TPA

1 M. S. Billets 1. M.S. Scrap 144000 2. Sponge Iron 396000 ( already producing 324000 TPA at Ghugus plant and proposed plant at

Konsari will provide another 72000 TPA)

2 Hot Rolled long M.S. Billets 504000 products/ TMT Bars Indonesian Coal / 7200 Indigenous Coal

3 Ferro Alloys Manganese Ore 25200

Coke 37800 Carbon Paste 780

Quartz 25200

Dolomite 4200

Ferro Alloys (Silico Ferro Manganese 3744 Manganese) Slag

3.7 Water Requirement and Source

Total water requirement for the proposed project will be about 260 KLD. Water requirement for the project will be sourced from Wardha River. The water requirement and its breakup is given in Table 3.

Table 3 Water Requirement and its Breakup Particulars Consumption (CMD) Loss (CMD) Effluent (CMD)

Proposed Total Proposed Total Proposed Total

Domestic 14 14 3 3 11 11

Industrial 98 98 68 68 30 30 Process Cooling 140 140 140 140 0 0 Tower Gardening 8 8 8 8 0 0

Total 260 260 219 219 41 41

3.8 Power Requirement

The power required for the proposed project will be 35 MW which will be sourced from Own CPP & MSEDCL

3.9 Environmental Impact and Mitigation Measures

3.9.1 Air Environment

Sources of Emissions The sources of air pollution are coal handling system, materials transportation, raw materials feeding to the operating equipments. The automatic process equipments will be employed for the raw material feeding system. Stacks of adequate height of 30 m is proposed for proper dispersion of flue gases. The following Environmental Management Plan will be implemented to control air emissions from Induction Furnace and Gasifier. Action Plan to Control and Monitor Secondary Fugitive Emissions from all the Sources

 The primary fume pick up from Induction Furnace will be by a canopy hood placed over the furnace and to convey the same single walled MS duct will be employed. Fumes will be evacuated directly from induction furnaces through hoods with swirling mechanism and ducting.

 The emission from induction furnace area will be extracted and treated in a fume extraction system.  Venturi Scrubber, Bag Filters followed by stacks will be installed.  Fugitive emission from material unloading operations, material transfer points will be controlled fully with total enclosure.  Coal will be transported in tarpaulin covered trucks from Railway Siding.

 Particulate matter will be controlled below 50 mg/Nm3 by providing efficient dust suppression system like fog type and water spray system shall be installed in the material handling system transfer points

 Plantation along the internal roads in the plant premises will be strengthen

 All the internal roads shall be concreted / asphalted to reduce the fugitive dust due to vehicular movement

 The emissions from the stacks shall be regularly monitored for exit concentration of Nitrogen oxides and PM. Sampling ports shall be provided in the stacks according to CPCB guidelines.

 Fugitive as well ambient air quality monitoring shall be carried out on regular basis to ensure the compliance with National Ambient Air Quality Standards (NAAQS). The ambient air quality within the factory premises shall not exceed 3 3 3 3 the standards (PM10 100g/m , PM2.5 60g/m SO2 80g/m , NOx 80g/m and CO 04 g/m3) prescribed by CPCB.

 Water sprinklers will be installed for dust suppression.

 During induction melting of steel scrap, lot of sparks gets generated. For the purpose of arresting sparks & flame, it is necessary to have an arrestor which arrests sparks. The device provided will be a centrifugal cyclone, which removes sparks and also collects coarser particles. The collected dust in the cyclone hopper can be drained periodically into a drum when the system is shut or a continuous motorized rotary air lock valve can be provided.

3.9.2 Noise Pollution Control

In plant, workers particularly working near higher noise sources, may be exposed to higher level upto 75 dB(A) for longer durations. These exposures are well below the exposure limits of occupational safety and health administration, (OSHA) i.e. 90 dB(A) for 8 hour shift and 6 working days. However, provision of ear plugs or ear muffs shall be made for in-plant workers working at such locations in order to avoid exposure to high levels whenever they come near the high noise generating sources.

Further, all noise generating equipment shall be housed within acoustic enclosure (wherever possible), to ensure attenuation of noise. The employees shall be trained in the mitigation measures and personal protection measures to be taken to prevent noise related health impacts. The general mitigation for the attenuation of the noise are given below:

 Providing padding at various locations to avoid sharp noise due to vibration.

 Other than the regular maintenance of the various equipment, ear plugs/muffs are recommended for the personnel working close to the noise generating units;

 All the openings like covers, partitions will be designed properly

 Inlet and outlet mufflers will be provided which are easy to design and construct.

 All rotating items will be well lubricated and provided with enclosures as far as possible to reduce noise transmission.

 The insulation provided for prevention of loss of heat and personnel safety will also act as noise reducers.

3.9.3 Impact on Water

Total water requirement for the proposed project is 260m3/day. The source of water is met through MIDC. The Water requirement is primarily for industrial use (for cooling only), make-up, dust suppression system, green belt, domestic and other miscellaneous use. The Wastewater generated from the cooling purpose & Air Pollution Control Devices will be treated in the settling tank within the premises and the treated water will be reused back to the process. The domestic wastewater will be treated in Packaged Type STP of 15KLD and treated water used for greenbelt development. Hence, the zero wastewater discharge is proposed for the proposed project.

3.9.4 Solid Waste Generation The slag generated from induction furnace which is non hazardous and non toxic in nature, is being used for hardening of internal roads, working area, concreting Slag generated is crushed at site. Iron particles are separated by using magnetic separator. Crushed slag (Sand) is being used in hardening of working area.

A slag crusher will be installed to crush Quantity Mitigation Measures slag. Iron particles will be separated by using Magnetic Separator. These iron particles will be reused in Induction Furnace. Solid waste generation and its mitigation measures are as follows.Waste Slag 49200TPA A slag crusher will be installed to crush slag. Iron particles will be separated by using Magnetic Separator. These iron particles will be reused in Induction Furnace. The slag generated from Induction Furnace will be non-hazardous and non-toxic in nature. Initially this will be used for levelling of Plot. It will be used for hardening of working area & construction of internal roads. In future possibilities will be explored to use slag for construction of internal village roads. Tail cutting 100% reuse in Induction Furnace

Ash Max. 420 Ash will be used for brick TPA manufacturing, for which the market already exists. Ferro / Silico Manganese Slag 3744 TPA 100% Ferro manganese slag will be used in Plant for production of Silico manganese. There is no generation of hazardous waste except used oil from machineries and transformers. This waste oil will be used for secondary purpose and will be disposed through authorized vendors / recyclers.

Sr. Component Description Capital cost Rs. Operational and No. In Lacs Maintenance cost (Rs. In Lacs/yr) 1 Air Pollution Bag filters, Venturi Rs. 200 Lac Rs. 20 Lac Control Scrubbers

2 Water STP & ETP Rs. 70 Lac and Rs. Rs. 2 lac and Rs. 1 Lac Pollution 40Lac Control 3 Solid Waste Handling and Rs. 40 lac Rs. 3 lac Management Disposing 4 Green Belt Plantation Already in existence 5 Environmental Air quality , Water and Rs. 50 Lac for Rs. 5 Lac Monitoring wastewater quality; CAAQMS and Noise levels; Soil online stack quality monitoring system Total Rs. 400 Lacs Rs. 31 Lacs

4.0 Site Analysis

4.1 Connectivity

The proposed site is accessible by State Highway No. 6 at crow fly distance of 1.0 km in NE. Nearest Railway Station is Ghugus about 2.5 Km in N direction and nearest Airport is Sonegaon about 127.0 Km in N direction from existing Site as crow flies.

Nearest City is Chandrapur located at a crow fly distance of about 17.5 km in E direction of the existing site. Wardha River is 2.5 km away towards South West direction. 4.2 Land Form The proposed project will be located within the MIDC Ghugus, Chandrapur. The land is notified for industrial use and land ownership is with MIDC. Land is leased to LloydsMetals and Energy Ltd. 4.3 Topography The topography of the area is plain and the proposed plant of LMEL is located at an altitude of 197 m from mean sea level. 4.4 Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ), shortest distances from the periphery of the project to periphery of the forest, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river),

CRZ. In case of notified industrial area, a copy of the Gazette notification should be given. The proposed land of the LMEL is located in the MIDC area, which is indistrial land. The land is notified for industrial use. In the 10 km radius area notified forests, national parks, wild life sanctuary and eco sensitive areas do not exist.Wardha River is 2.5 km away towards South West direction. 4.5 Environmental Setting of the project

Details are provided in table no.1 4.6 Soil Classification The majority of soil of study area is medium & shallow black soils. The numerous varieties of soil are known by many local names, yet they are grouped as Kali, Kanhar, Morand, Khardi ,Wardi etc. 4.7 Climatic data from Secondary Sources The climate of the district can be classified as tropical hot climate with high range of temperature through out of year. Primarily there are two prominent seasons in the district the very hot summer and moderate winter. The summer months are very hot and prolonged while winter is short and mild. The monsoon season starts immediately after summer till late September. The southwest monsoon brings lot of rainfall during rainy season. 4.8 Social Infrastructure available In 2011, Chandrapur District had population of 22, 04,307 of which male and female were 1,123,834 and 22,68,595 respectively. Chandrapur District population constituted 1.96 percent of total Maharashtra population. The initial provisional data released by census India 2011, shows that density of Chandrapur district for 2011 is 193 people per sq. km With regards to Sex Ratio in Chandrapur District, it stood at 961 per 1000 male. Chandrapur City at 17.5 km from proposed site, adequate social infrastructure is available. The social infrastructure comprising hospitals, schools, colleges, community halls, places of worship, cemetery, crematory etc already exists and within an hour these facilities can be availed.

5.0 Planning Brief

5.1 Planning Concept The proposed project will be located in Plot no. A-1 & A-2 MIDC Ghugus, Taluka & District- Chandrapur.Infrastructure facilities in this MIDC area are well developed and has well connectivity by road and rail.The nearest town Chandrapur is 17.5 km away and easily accessible by road where all facilities such as schools, collages, hospitals and markets are available. 5.2 Population Projection In the area, trained manpower is already available and in the proposed project local workers will be given priorities for employment. There will not be significant increase in population due to proposed project. The additional people influx due to the proposed project can be easily accommodated in the Chandrapur city and nearby villages. The development of new residential facility is not anticipated. 5.3 Land use planning The proposed project will be located in Plot no. A-1 & A-2 at MIDC Industrial area and land use is already notified as Industrial purpose. At present, land is barren and not in any use. The proposed project will be constructed with well developed green belt all around the boundary of the plots as well as all around the various units. Total land of the proposed project is 2.5 ha and 33% of land will be converted to plantation. It is proposed to plant 10,000 saplings every year. Suitable plant species will be planted all along the internal road, raw material storage & handling, ash/dust prone areas. Itis planned to plant saplings considering the parameters as type, height, leaf area, crown area, growing nature, water requirement etc. Green belt will be progressively developed on land earmarked for the purpose. 5.4 Assessment of Infrastructure Demand The road and rail infrastructure is already well developed in the area which requires for the transport of the raw material and finished goods to the various part of the country. The manpower is local and their social infrastructure is also developed. The inflow of money in terms of taxes to grampanchyat and salaries to the manpower will further improve the physical and social infrastructure.

5.5 Amenities/Facilities In the proposed project, additional amenities and facilities for drinking water, medical dispensary first aid box, communication facilities, emergency vehicle for shifting the workers during accident etc. are available

6.0 Proposed Infrastructure

6.1 Industrial Area (processing area) The infrastructural facilities are already developed in the premises of the unit as per the requirement and additional facilities for the propose project will be provided as per the requirement. 6.2 Residential Area (non processing area) The local peoples will be employed for the proposed project. The development of residential area is not needed. 6.3 Green belt Green belt development work will be undertaken on area of 33% of plant area of A-1 & A-2. 6.4 Social Infrastructure The social infrastructure in the region is well developed due to presence of MIDC area. 6.5 Connectivity (Traffic and Transportation Road/Rail/Metro/Water ways etc.) The connectivity in terms of traffic, transportation road is already developed and good. There are well connected roads in the area. The nearest railway station is existing at Ghugus. 6.6 Drinking Water Management (Source & Supply of Water) Wardha River water will be used for drinking purposes other proper treatment.

6.7 Sewerage System Package type Sewage treatment plant will be provided for the treatment of domestic effluent and treated effluent will be utilized for green belt development. 6.8 Industrial Waste Management Industrial effluent generation from proposed project will be low and it will be treated in ETP. The treated effluent will be utilized for Green Belt development. 6.9 Solid Waste Management Slag generated will be utilized for the construction of the roads and balance quantity will be disposed off by landfill. Fly ash and bottom ash generated from the plants will used for brick manufacturing.

6.10 Power Requirement & Supply/Source The power requirement will be fulfilled Captive Source and MSEDCL.

7.0 Rehabilitation and Resettlement (R & R) Plan The rehabilitation and resettlement (R&R) is not required for the proposed project as it will be constructed in the MIDC area.

8.0 Project Schedule & Cost Estimates

8.1 Likely date of start of construction and likely date of completion (Time schedule for the project to be given) The board of directors have vast experience in steel manufacturing business. All necessary statutory permissions will be obtained. The construction will be started after getting Environment Clearance and Consent to Establish from MPCB. 8.2 Estimated project cost along with analysis in terms of economic viability of the project The estimated gross capital investment of the proposed project is about Rs. 760 Crores. The economic viability is still good due to availability of raw materials, market and infrastructural facilities.

9.0 Analysis of Proposal Final Recommendations The proposed project will have good financial and social benefits to the local people.