Orissa Cluster

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Orissa Cluster ACNielsen ORG-MARG Situation Analysis for SME Sector Orissa Cluster Submitted to TERI By ACNielsen ORG-MARG SUMMARY OF FINDINGS • There are approximately 45 units in this cluster who are engaged in manufacturing of Sponge Iron. ➢ PRODUCTION: Annual Production (In Tonnes) 12 11 10 10 9 9 8 8 7 6 6 6 5 5 4 4 4 4 3 3 3 2 2 1 0 2005-06 2006-07 2007-08 Upto 20000 Tonnes 20000 to 40000 Tonnes 40000 to 60000 Tonnes 60000 to 80000 Tonnes 80000 to 100000 Tonnes 100000 to 150000 Tonnes Above 150000 Tonnes ACNielsen ORG-MARG ➢ ENERGY REQUIREMENTS • CUMULATIVE FUEL USAGE Qty consumer per Number of Units using annum the fuel Electricity 40038000 Units 41 Coal / Hard Coke 3781560 Tonnes 43 HSD 644000 Liters 39 • USAGE OF ELECTRICITY (IN UNITS CONSUMED PER ANNUM) 12% Usage of Electricity (In Units consumed per annum) 12% 20% Upto 100000 Units 100000 to 500000 Units 500000 to 1000000 Units 15% 1000000 to 1500000 Units 1500000 to 2000000 Units 26% Above 2000000 Units 15% • USAGE OF COAL (IN TONNES PER ANNUM) ACNielsen ORG-MARG 9% Usage of Coal (In Tonnes per annum) 5% 37% Upto 10000 Tonnes 9% 10000 to 25000 Tonnes 25000 to 50000 Tonnes 50000 to 75000 Tonnes 75000 to 100000 Tonnes 14% 100000 to 200000 Tonnes Above 200000 Tonnes 14% 12% • USAGE OF HSD (IN LITERS PER ANNUM) 26% Usage of HSD (In Liters per annum) Upto 5000 Liters 13% 5000 to 10000 Liters 18% 10000 to 20000 Liters 20000 to 30000 Liters Above 30000 Liters 13% 30% ACNielsen ORG-MARG ➢ RAW MATERIAL REQUIREMENT • CUMULATIVE RAW MATERIAL USAGE ACNielsen ORG-MARG Qty consumer per Number of Units using the raw annum material Iron Ore 3837000 Tonnes 26 • USAGE OF IRON ORE (IN TONNES PER ANNUM) 19% Usage of Iron Ore (In Tonnes per annum) 12% Upto 50000 Tonnes 4% 50000 to 100000 Tonnes 100000 to 150000 Tonnes 23% 150000 to 200000 Tonnes 19% 200000 to 300000 Tonnes Above 300000 Tonnes 23% ACNielsen ORG-MARG FIELD OBSERVATIONS ✓ As per the field findings this cluster is not an SME cluster as the plant & machinery cost is more than Rs. 20 crs. ✓ In Mayurbhanj, Keonjhar and Sundergarh around 130 sponge iron factories were functioning, of which over 50% were illegal. Many are operating even without NOCs. Clearnance procedures and Public hearings are unheard of here and inspite of this in the past two years people have managed to get almost 6 plants to withdraw or stop construction in Sundergarh. The main reason cited by the people for opposition has been the large-scale air and water pollution, which had started affecting not only their health but also that of their livestock, agriculture and land. ✓ Sponge iron also known as direct reduced iron is extracted from iron ore and is used in the making of steel ✓ In Orissa the most affected district is Sundergarh where almost 50 of these plants are situated. The district inspite of being a Schedule V area is facing a situation where land is being transferred to these companies without NoCs from the Gram Sabha ✓ These units are dependant on National Mineral Development Corporation (NMDC) and private miners for iron ore ✓ Sponge iron is used for making long steel products such as ingots and billets. ✓ In sundergar district 16 nos, In Keonjhar district 14 nos, Jharsuguda District 11 nos & in Jajpur district 4 nos. ✓ All the sponge iron units are mechanized in nature and are in operation since last 7/8 years, there are some units, which have started very recently - 2 years back. ✓ The units are using technology sourced from Lurgi. ✓ All the units are running continuously for 3 shifts and are sourcing power from the grid @ 3.90/- per unit, having HT connections. Some units have CPP. ✓ If a plant has a total annual production capacity of 6.9 million ton, it requires about 17 million-ton iron ore and 13 million ton of coal. ✓ The sponge iron units have an high energy cost of 30 to 35% and the raw material cost is 60%t of total production cost ACNielsen ORG-MARG Electricity ❖ Electricity supply by North Eastern Electricity supply company of Orissa ltd, Corporate office, Januganj, Balasore,Ph- 06782-269864 ❖ Western Electricity supply company of Orissa Ltd, corporate office- Burla, Sambalpur, Orissa, Ph-0663-2430892, 2430895 ❖ Power getting from grid, duration of electricity20 to 22 hr regularly Equipments ➢ Induction furnace – 15 ton ➢ Crusher (Coal crusher, iron crusher & slag crusher) ➢ Sponge iron kiln – 350 to 400 tpd ➢ Motor ➢ Conveyors Process Raw material mixed Feeding in Kiln Induction furnace (Temp (Iron ore, Dolomite & required 750oC to 1050oC) & limestone + coal) prs of 1 to 2 bars. Magnetic Cooling to Screen separator atmospheric condition • Fe2O3 Fe3O4 FeO Fe Waste through conveyor ACNielsen ORG-MARG • For rolling process temperature required 900oC to 1100oC & Prs Final required 7 kg to 14 kg CM2 Product ACNielsen ORG-MARG ACNielsen ORG-MARG Mines Iron OreYard ACNielsen ORG-MARG Coal yard Sponge iron plant ACNielsen ORG-MARG Kiln Sponge iron ACNielsen ORG-MARG SERVICE PROVIDER Raw material supplier (Coal) ❖ Mahanadi Coal field ltd, Brajraj nagar, Orissa ❖ Basundhara Coal Field ltd, Talcher, Orissa ❖ Global Coal & Mining pvt. Ltd, Belpahar ❖ Bhatia International Ltd, Belpahar Raw material supplier ( Iron ore) ❖ Rungta Mines, Barbil, Orissa ❖ Sirajudhin Minerals, Barbil, Orissa ❖ Essel Pvt. Ltd, Joda, Orissa ❖ East India Pvt. Ltd, Orissa ❖ S.Lal & co ltd, Barbil HSD (Indian Oil, Bharat Petrolium) Equipment suppler Hari Machines Ltd Rajgangpur, Orissa, Ph-06624-220141/161 B.K. Engineering Bhilai, Chhatisgarh Venus Control, Noida (U.P) Ucan, Mumbai Elgpa Eng. Ltd, Hyderabad ACNielsen ORG-MARG Ashok Technologies A – 15, Maypuri Industrial Area,Phase – 1, New Delhi – 110064, Ph-011-28115308, 228116570 Association Orissa Sponge Iron Manufacturers’ Association. Palash Palli, Bhubaneswar-751020 Ph-0674-2594875 (Mr. G.S. Agarwal) ACNielsen ORG-MARG Bankers ✓ All the units are associated with the baks for CC limits. o IDBI o State bank of India, Jajpur road, Orissa o Canara bank, Jajpur, Orissa o United bank of India o Bank of Baroda, KEONJHAR,ORISSA-758001 .
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