Pre-Feasibility Report

PRE-FEASIBILITY REPORT

FOR

PROPOSED MODERNIZATION & EXPANSION OF ROLLING MILL PROJECT

BALMUKUND SPONGE & IRON PVT. LTD. Vill. Manjhiladih P.O.: Gadi Srirampur Dist.: Giridih (Jharkhand)

INDEX

Contents Page Nos. 1. Executive Summary 01 2. Introduction of the Project / Background 03 Information 3. Project Description 11 4. Site Analysis 15 5. Planning Brief 18 6. Proposed Infrastructure 19 7. Rehabilitation and Resettlement (R & R) Plan 21 8. Project Schedule & Cost Estimates 21 9. Analysis of Proposal 22

1. EXECUTIVE SUMMARY :

Location:

Balmukund Sponge & Iron Pvt. Ltd. (BSIPL), is situated at Manjhiladih, P.O. Gadi Srirampur, District Giridih, Jharkhand having Latitude 2407’9.36”N & Longitude 86021’15.62”E at 290 m. above MSL near by SH-13 (Koderma-Giridih_Govindpur Road). It is about 8 kms. from district head quarter Giridih and is well connected by SH - 13 and rail with rest of the country. BSIPL is about 8 Km. (SE) from Giridih Railway Station on Giridih - Madhupur Sec. of ECR which is connected to Delhi-Howrah Main line at Madhupur.

General Details:

Balmukund Sponge & Iron Ltd. is an ISO 9001 : 2000 company incorporated on 14th July 1999 having its registered office at 603, Shanti Kunj Apartment, Chajjubagh, Patna – 800 001. The Directors of the company are Sri Nawal Kumar Kanodia, Sri Abhishek Kanodia & Sri Om Prakash Agarwal. The company has commissioned a Metallurgical unit for production of MS Ingot (50TPD), Silico Manganese (35 TPD) and MS Bar/Rod (50 TPD) in the year 2003-2004. In the year 2010, BSIPL has installed Mini Blast Furnace (65M3 capacity) for production of Pig Iron (110 TPD). Environmental Clearance for pig iron plant was obtained from MoEF & CC, Govt. of India vide F. No. J-11011/870/2008-IA II (I) Dt: 28th Jul.’2010. Consent to Establish (CTE) was granted by JSPCB vide Memo No. 3576 Dt: 18.07.2008 for the pig iron plant. Further, in the year 2015, BSIPL has dismantled and removed its existing MS Ingot (50 TPD) and Silico Manganese plant (35 TPD) and new Induction Furnace with 2 strand CCM for production of 102660 TPA (290 TPD) of MS-Billet & Iron Ore Beneficiation plant of 94000 TPA was installed. Environmental Clearance for modernization and expansion project was obtained from SEIAA, Jharkhand vide letter No. EC/SEIAA/2013-14/297/2014/1525 Dt: 25.08.2015. Now, BSIPL intends to remove its existing oil fired rolling mill (50 TPD) with new rolling mill (270 TPD) based on continuous heating process from existing CCM within its existing premises.

BSIPL owns a total land of 26.354 Acres at Mauza Manjhiladih, Khata No. 161, 162, Plot Nos. 940, 941, 942, 943, 944, 946. Total land area is 26.354 acres. 33% of total land area (8.7 Acres) is developed as green belt within existing premises. 14 acres of land is being used for existing Pig Iron, SMS Plant & Iron ore beneficiation plant. Out of remaining 3.65 acres, 1.86 acres of land will be utilized for installation of new rolling mill project within existing sheds. Sufficient space is available for expansion and setting up of new rolling mill within the existing premises and

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [1] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar there will not be any need to purchase additional land. All necessary infrastructures are available in the existing plant premises. Manufacturing & Production Details ;

Manufacturing Facilities Product Existing Proposed Total 39000 TPA Mini Blast Furnace Pig Iron N.A. 39000 TPA (110 TPD) Induction Furnace (SMS 102660 TPA MS Billet N.A. 102660 TPA with CCM) (290 TPD) Iron Ore Beneficiation Iron Ore 94000 TPA 94000 TPA N.A. Plant Beneficiation (266 TPD) (266 TPD) 16000 TPA 86400 TPA 86400 TPA Rolling Mill M.S / TMT Rod (50 TPD) [ Will be (270 TPD) (270 TPD) replaced with new plant ]

Raw Material Requirement for Rolling Mill Expansion Project ;

Item Ratio Input Qty. / MT Raw Material of Product Requirement MS Billet 1.18 % 1.18 102660 (Own Production within premises)

Pollution Control Measures:

The major sources of pollution in BSIPL rolling mill expansion project are fugitive dust emissions. No industrial waste water will be generated. The air pollution will be controlled and minimized through bag filters, dust collectors and water sprinkling system. Other sources of pollution are solid waste & noise.

Waste Water Generation & Treatment ;

In the proposed expansion no water will be utilized in manufacturing process. No industrial waste water will be generated from the proposed expansion project. Only domestic waste water will be generated which will be disposed off through septic tank followed by soak pits inside the premises.

Air Pollution:

Presently BSIPL has 25 M3 MBF, 3 nos. Induction Furnace (2 Nos. 7 MT & 1 No. 15 MT) & Iron Ore Beneficiation plant. Mini Blast Furnace is equipped with Gas Cleaning System and Dry Fogging System, Induction furnace plant is equipped with Fume Extraction System for controlling and minimizing air pollution. In the proposed new rolling mill, bag filter with dust collectors will be installed to control and minimized fugitive dust emissions. There will be no

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [2] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar stack in new rolling mill plant as the surplus heat of SMS will be utilized in rolling mill for production of MS/TMT Bar.

Solid Waste Management:

3600 TPA of End Cutting and Mill Scale will be generated from the operation of proposed new rolling mill plant. All the generated solid waste will be reuse as raw material in SMS within the premises of BSIPL.

Project Cost :

Total cost of the proposed expansion project will be approx Rs. 1400 Lakhs (14 Crores).

PROJECT DETAILS

2. INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION :

(i) Identification of Project & Project Proponent

Nawal Kumar Kanodia Director Balmukund Sponge & Iron Pvt. Ltd. 603, Shantikunj Apartment Chajjubagah Dist- PATNA – 800001, Bihar Ph No- 0612 - 2322388

Location of the Project :

Balmukund Sponge & Iron Pvt. Ltd. (BSIPL), is situated at Manjhiladih, P.O. Gadi Srirampur, District Giridih, Jharkhand having Latitude 2407’9.36”N & Longitude 86021’15.62”E at 290 m. above MSL near by SH-13 (Koderma-Giridih-Govindpur Road). It is about 8 kms. from district head quarter Giridih and is well connected by SH - 13 and rail with rest of the country. BSIPL is about 8 Km. (SE) from Giridih Railway Station on Giridih - Madhupur Sec. of ECR which is connected to Delhi-Howrah Main line at Madhupur.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [3] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar PROJECT LOCATION MAP

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [4] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar (ii) Brief description of nature of project :

Balmukund Sponge & Iron Pvt. Ltd. is a Metallurgical unit for production of MS Ingot (50TPD), Silico Manganese (35 TPD) and MS Bar/Rod (50 TPD) in the year 2003-2004. In the year 2010, BSIPL has installed Mini Blast Furnace (65M3 capacity) for production of Pig Iron (110 TPD).

Further, in the year 2015, BSIPL has dismantled and removed its existing MS Ingot (50 TPD) and Silico Manganese plant (35 TPD) and new Induction Furnace with 2 strand CCM for production of 102660 TPA (290 TPD) of MS-Billet & Iron Ore Beneficiation plant of 94000 TPA was installed. Now, BSIPL intends to remove its existing oil fired rolling mill (50 TPD) with new rolling mill (270 TPD) based on continuous heating process from existing CCM within its existing premises.

(iii) Need for the project and its importance to the country and or region

The steel industry is often considered to be an indicator of economic progress, because of the critical role played by steel in infrastructural and overall economic development, with the main demand creators being the automobile, construction, infrastructure and oil & gas Industries.

India has traditionally been one of the major producers of steel in the world. Till the 1990s the steel industry of India was regulated and controlled by government policies. After the economic reforms of the early 1990s, the Indian steel industry has evolved significantly to conform to global standards. India has set a vision to be an economically developed nation by 2020. The steel industry is expected to play a major role in India's economic development in the coming years. The steel industry of India has a very high growth potential and is expected to register significant growth in the coming decades. India is expected to emerge as a strong force in the global steel market in coming years.

The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world. As per the report of the Working Group on Steel for the 12th Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country, currently estimated at 55 kg

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [5] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar (provisional). These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12 th Plan has projected that the crude steel capacity in the country is likely to be 140 MT by 2016-17 and has the potential to reach 149 MT if all requirements are adequately met.

The National Steel Policy 2005 is currently being reviewed 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 since the release of the Policy in 2005.

The two major aspects that are expected to play a significant role in the growth of the steel industry in India are – Abundant availability of iron ore in the country

The country has well established facilities for steel production

Steel production in India has grown from 17 MT in 1990 to 36 MT in 2003. It is expected that by 2011, the steel production in India will grow to 66 MT.

The major sectors where consumption of steel is expected to grow in the coming years are

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [6] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar Construction

Housing

Ground transportation

Hi-tech engineering industries such as power generation, petrochemicals, fertilizers

The current scenario of the Indian steel industry indicates that there is huge growth potential in this industry. The per capita-consumption of steel in India, according to latest available estimates, is only 29 Kg. This is much less compared to the global average of 140Kg. The per capita consumption level of developed nations like the United States of America is 400Kg. In this respect, one of the major initiatives that need to be taken is to focus on increasing the consumption of steel in the rural areas of India. The potential for the growth of consumption of steel in the rural areas of India for purposes like rural housing, rural infrastructure, etc is high which needs to be tapped efficiently.

In order to realize the growth potential in the steel industry of India, it is essential to ensure that the industry can remain competitive. One of the major aspects in this regard is the availability of inputs. Shortage of inputs like coke has led to increase in costs earlier. Moreover proper infrastructure facilities like transport infrastructure, power etc are of prime importance in maintaining the competitiveness of the industry.

Most developed countries have regulations that are aimed to protect the domestic steel industry. The Indian steel industry has comparatively much lesser protection through regulations. Proper regulatory measures should be adopted by the government to protect the domestic steel industry.

(iv) Demand Supply Gap:

The Indian steel industry is headed for a period of overcapacity with additional supply coming on stream in the next fiscal likely to exceed any improvement in demand.

The result may be continuing price and margin pressures for Indian steelmakers who are already under pressure due to slowing domestic demand and cheaper imports.

Fiscal 2016 will see nearly 9 million tonnes (mt) in fresh capacity added to the existing capacity of about 95 mt, estimates rating agency Crisil Ltd.

While supply of steel will grow at roughly 10%, demand is expected to grow 5-6% led by a pick-up in sectors such as construction and automobiles, noted the rating agency.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [7] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar This mismatch could lead to continued under-utilization of steel capacities, which are currently running at a utilization level of about 78%.

To avoid a demand-supply mismatch, demand in the next fiscal will have to grow at 7- 8%, which is unlikely. In the absence of that and if global steel prices remain at the current level, we expect further stress on domestic steel prices, by 3-4%.

(v) Imports vs. Indigenous Production:

a) Higher steel consumption is long believed to be the barometer of industrial growth in the country. Industry has grown by 2.2% in the first eight months of the current fiscal, while consumption of steel went up by 1.3% during the period. Taking into account the next two months, India has consumed around 3.5% more of steel against last year and, therefore, expectedly the IIP for the same period (to be known by the next month) must also reflect a higher growth. b) Now with the change of the base year, the inclusion of new sets of industries would lead to reporting of higher volumes of output than captured so long. Unfortunately, this growth story has a weak link that is not palatable to the growth of Indian economy. c) A 3.5% growth in steel consumption was achieved through 5.3% growth in indigenous steel production for sale and 61% hike in imports of steel. The consumption growth could have been higher, but for a four times rise in inventories due to subdued demand. The rise in import volume has penetrated into the market share of a few major steel producers.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [8] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar d) Currently, steel imports constitute around 12% of total consumption. This is approximately 4% more compared to what it was in last year. The decline in market share of major producers (SAIL, Tata, JSW, Essar, JSPL) is the direct outcome of rise in imports. e) From customers’ point of view, the imported steel available at a cheaper rate and otherwise satisfying the quality parameters at their end is always preferred. Industrial production deprived of the contribution from basic industries (on account of low capacity utilization of the domestic players) can make it up by higher output of the end products industries catered to by the customers of imported steel. f) While the country collects higher customs duties by increased steel imports, it loses excise duties and other indirect tax revenues by cut in domestic steel production, lower income and employment opportunities by the people associated with it. The banks’ NPAs go up due to inability of domestic producers to pay back loans in time. The Railways and road transport earn less revenue due to poor movement of raw materials and finished products, much more than increased movement of imported steel. g) It is possible to attach values to each of these aspects and quantify the cost benefit analysis of higher imports of steel. Similar exercise in other countries have shown that in totality an import led consumption growth has a disastrous impact on the existing players in terms of economic margin, long-term prospects and viability. h) India needs to make up its huge deficit of infrastructure, be it in rails, roads, urban facilities, ports, airways, oil and gas, irrigation or communication. The dream of 100 smart cities can be fulfilled only by strengthening the domestic industry that is capable of supplying basic ingredients in a cost-effective and efficient manner. While Indian steel industry is genuinely seized with the threat of rising imports that is in turn facilitating the excess capacities in other steel producing countries like China, Japan, South Korea and CIS to get a regular outlet in Indian market, the industry must take care of the procurement cost at the customers’ end, match the quality parameters of imports and improve other non-pricing factors. i) Experience has shown that delays in project execution have cost value realization dearly in the post modernization phases, as most of the demand of non-repetitive nature were serviced from alternate sources including imports leading to surplus capacity in the existing unit. A pro-active government provides invaluable support to the domestic

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [9] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar industry in a situation of sudden surge in imports, but the industry needs to play its cart with more pragmatism and less emotion.

(vi) Export Possibility:

BSIPL management will decide & explore export possibilities for their products in due course of time.

(vii) Domestic/Export Market:

. The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel.

. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world.

. As per the report of the Working Group on Steel for the 12th Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country, currently at 59.2 kg. These include among others, an estimated infrastructure investment of nearly a trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in urban population to 600 million by 2030 from the current level of 400 million, emergence of the rural market for steel currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

. At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12 th Plan has projected that the crude steel steel capacity in the county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately met.

. The National Steel Policy 2005 is currently being reviewed 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 since the release of the Policy in 2005.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [10] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar

(viii) Employment Generation (Direct & Indirect)

The proposed expansion of will generated employment opportunities both in direct and indirect mode. In director mode people will Get job in proposed expansion project and in indirect mode people will be appointed as company authorized dealers & sellers.

3. Project Description:

(i) Type of project including interlinked and inter dependent project:

BSIPL has installed SMS in the year 2015 for manufacturing of MS Ingot/Billet. Now, to fulfill the increasing demand of standardized & quality MS/TMT Bar in the market, company intends to increase its production capacity of rolling mill plant by expansion of existing unit. (ii) Location:

Village : Manjhiladih Block : Giridih District : Giridih State : Jharkhand

(iii) Details of alternate sites Considered and the basis of selecting the proposed site, particularly the environment consideration gone into should be highlighted.

No alternate sites have been considered for the proposed expansion project as all the expansion activities will be carried out within existing premises and no additional land will be required for the proposed expansion project. For the proposed expansion project an area of 1.89 Acres has been allocated within the premises.

(iv) Size or magnitude of operation:

The project capacity after proposed expansion will be 86400 MT / Annum MS /TMT Bar. In view of rapid increase in the demand of TMT Bar/Rods from year to year and availability of raw materials i.e. MS Billet/Ingot within premises project proponent has decided to expand its existing production capacity.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [11] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar (v) Project description with process details: (a schematic diagram/flowchart layout, components of the project)

Raw Material M.S. Billet / Ingot is heated deep in the heating furnace. Rolling of steel is a metal forming process in which steel is passed through a pair of rotating rolls for deformation of the steel. Deformation is caused by the compressive forces applied through the rotating rolls. High compressive stresses are as a result of the friction between the rolls and the steel stock surface. The steel material gets squeezed between the pair of rolls, as a result of which the thickness gets reduced and the length gets increased. To begin with Billets/Ingot are transferred to the Rolling Mill Roughing section. These Billets are rolled several times to and fro in stand no 1 to 2 ,2 to 3 and 3 to 4 and so on several times. Front and tail end of the bar which gets split or turns cold during the rolling process are cut by rotary shears and onward rolling is carried out in intermediate mill ( consisting of 4 stands) and finishing mill (consisting of 6 stands) in continuous mode.

The rolling process is automatic and fixed type repeaters are used. All stands are driven individually by DC motors. Finished MS/ TMT Rod is taken out of the finishing mill and fed to the TMT line where high pressure water is used for quenching to improve the mechanical properties of the bar. Due to this process the external surface changes to hard due to sudden quenching and the inner core remains soft .

From TMT line the bars are transferred to cooling bed where they are appropriately cut into required marketable length and left to cool till the time both the internal and the external surface of the bar reaches to around 600 0C. The above bars are then transferred to the finishing bay where bundling and binding takes place.

(vi) Raw Material required along with estimated Quantity, likely source, marketing area of final products, mode of Transport of raw material & finished product.

Item Ratio Input Qty. / MT Raw Material of Product Requirement MS Billet 1.18 % 1.18 102660

(vii) Resources optimization/recycling and reuse envisaged in the

project, if any, should be briefly outlined.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [12] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar In the proposed expansion project no fuel will be used for heating purposes. Surplus heat from SMS will be utilized for rolling mill heating purposes.

(viii) Availability of Water its source, Energy/Power requirement and source should be given

At present & after expansion in future also, water requirement is fulfilled through borewells inside premises. 10 KL/Day water is required for proposed expansion project. Overall water requirement of the BSIPL project will be apporx. 175 KL/Day after proposed expansion. In the proposed project water will be used only for cooling, domestic & dust suppression activities. No Industrial water will be required.

(ix) Quantity of waste to be generated (Liquid and solid) and scheme for

their management.

The major sources of pollution in BSIPL rolling mill expansion project are fugitive dst emissions. No industrial waste water will be generated. The air pollution will be controlled and minimized through bag filters, dust collectors and water sprinkling system. Other sources of pollution are solid waste & noise.

Waste Water Generation & Treatment ;

Air Pollution:

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [13] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar

Solid Waste Management:

4. Site Analysis:

(i) Connectivity:

Within 10 Km. Area Sensitive targets are safe away  There is no reserved forest  SH – 13 approx. 400 m. away area  River Usri at a distance of 1.5 Km.  There is no biosphere  Population - Vill. Chatro : 800 m. reserve  There is no national park  There is no wildlife sanctuary

The expansion project is proposed within existing premises, the land is already used for industrial purpose. It is owned by the BSIPL. The terrain is almost hilly area. Project site is already under ownership of BSIPL. iii) Topography (along with map):

The terrain is almost hilly. 10 Km. radius toposheet is shown herewith.

10 KM. RADIUS TOPOSHEET OF PROJECT AREA

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [14] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar iv) Existing land use pattern (Agriculture, non agriculture, forest, water bodies including CRZ), shortest distance from the periphery of the project forest, national park, wild life sanctuary, eco- sensitivity area, water bodies Distance from HFL line, CRZ notification for notified industrial area.

At present existing land use of the project area is industrial in nature.

Project Location of BSIPL, Manjhiladih, Giridih

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [15] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar v) Existing Infrastructure ; Land for the proposed expansion is available within the existing premises. All necessary infrastructure are available within premises. vi) Soil Classification:

Soils in Giridih district has formed as a result of insitu – weathering of crystalline basement and Gondwana sedimentaries. Climate, topography and vegetation have all contributed to the formation of soil. Soils are sandy loam to clay loam, non-calcareous and slightly to moderately acidic. The soil of the region is shallow and medium in depth generally shallow on the ridges and plateaus and deep in the valleys with low fertility status.

Two types of soil occurs in the district namely Entisols( Older alluvial soil, Red sandy soil and red loamy soil) and Ultisols( red and yellow soil). Alfisols are the dominant soils covering more than 65 percent of Total Geographical Area. Majority of the area is occupied by red loamy soil, which falls under Alfisol group of soil. This is followed by red and yellow which falls under Ultisol group of soil. Older alluvial soil occurs over a small patch in the north western part in Gawan block. vii) Climatic Data ;

The temperature variations in different three seasons are given in table below :

Period Minm. Temperature Maxm. Temperature Mar. – June 18 0C – 25 0C 40 0C – 45 0C Jul. – Oct. 16 0C – 18 0C 30 0C – 40 0C Nov.- Feb. 8 0C – 12 0C 18 0C – 30 0C

Rainfall in Study Area :

Rainfall in mm. Period (Source : IMD Report) 2012 1104.4 2013 1132.2 2014 1170.9 2015 1125.3 2016 1294.3

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [16] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar viii) Social Infrastructure available ;

 Schools (Primary as well as secondary)  Colleges (Science, commerce, Arts, engineering, medical, pharmacy, education)  Health centers, dispensaries, hospitals  Electricity  Drinking water supply  Banks (Cooperative as well as nationalized) and credit societies

5. Planning Brief: i) Planning concept (type of Industries, facilities, transportation etc) Town and country planning/Development authority classification.

Type of Industry :

Further, in the year 2015, BSIPL has dismantled and removed its existing MS Ingot (50

TPD) and Silico Manganese plant (35 TPD) and new Induction Furnace with 2 strand

CCM for production of 102660 TPA (290 TPD) of MS-Billet & Iron Ore Beneficiation

plant of 94000 TPA was installed.

Now, BSIPL intends to remove its existing oil fired rolling mill (50 TPD) with new

rolling mill (270 TPD) based on continuous heating process from existing CCM within its

existing premises.

Facilities:

Manufacturing Product Existing Proposed Total Facilities 39000 TPA Mini Blast Furnace Pig Iron N.A. 39000 TPA (110 TPD) Induction Furnace (SMS 102660 TPA MS Billet N.A. 102660 TPA with CCM) (290 TPD) Iron Ore Beneficiation Iron Ore 94000 TPA N.A. 94000 TPA

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [17] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar Plant Beneficiation (266 TPD) (266 TPD) 16000 TPA (50 TPD) [ Will 86400 TPA 86400 TPA Rolling Mill M.S / TMT Rod be replaced with (270 TPD) (270 TPD) new plant ]

Transportation:

Mode of transport of raw materials & finished products will be road through trucks.

Town/Country Planning/Development authority Classification:

The project is located near village Manjhiladih, P.O.: Gadi Srirampur. Gadi Srirampur Grampanchyat is the local authority. BSIPL project was established in 2003 & since, then the land is being used for industrial purpose and will be used for the same purpose only. ii) Population Projection:

No major population influx is anticipated due to the proposed expansion project. iii) Land Use Planning

Site Layout Plan enclosed. iv) Assessment of Infrastructure demand (physical & social) :

The basic infrastructure such as roads, electricity, transportation, drinking water supply, health centers and hospitals, school, colleges, sanitation facilities are available in the vicinity. The proposed project is not going to exert any unbearable load on any of these resources. v) Amenities/Facilities:

Canteen, rest room, medical facilities, drinking water, etc. are available within existing project premises.

6. Proposed Infrastructure:

No new infrastructure is planned for the proposed expansion project. i) Residential Area (Non-Processing Area):

No new residential area is envisaged in the proposed project.

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [18] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar ii) Green Belt Area :

Overall green belt within the BMSIPL premises is approx. 8.7 acres. (33% of total project

area 26.354 Acres). iii) Social Infrastructure:

All infrastructure facilities are existing in the vicinity of the BSIPL . iv) Connectivity

After proposed expansion existing borewells will be used as drinking water source. vi) Sewerage System:

No industrial waste water will be generated from the proposed project. All the domestic waste water will be disposed off through septic tank followed by soak pit inside premises. vii) Industrial Waste Management:

Waste Water Generation & Treatment ;

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [19] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar

Air Pollution:

2.0 MVA of power will be sourced through DVC for operation of proposed expansion project.

7) Rehabilitation & Resettlement (R & R) Plan:

As there is no requirement of additional land for the proposed expansion project & BSIPL is already a running project which is under operation, so there is no need of any new Rehabilitation and Resettlement (R&R) Plan.

8) Project Schedule & Cost Estimates: i) Likely date of start of construction & likely date of completion.

Expansion activities will be started immediately after obtaining Environmental Clearance. Expansion activities will be completed within 6 months time after start. ii) Estimated Project cost along with analysis in terms of economic validity:

Expansion Project Cost Details are as under ;

Particulars Cost (in Lakh Rs.)

Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [20] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar Land & land Development Existing Civil Works 135.0 Plant & Machineries 1150.0 Pollution Control Measures 65.0 Operative other Expenses 23.0 Contingencies 27.0

GRAND TOTAL 1400.00

9) Analysis of Proposal (Final Recommendation):

(Financial & Social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area.)

BSIPL was installed in the year 2003-04 for production of MS Ingot/Billet & MS/TMT Bar. Now, to fulfill the increasing demand of standardized & quality MS/TMT Bar in the market, company intends to increase its production capacity by expansion within existing premises. It is proposed to increase the capacity by installation of new rolling mill to be operated by surplus heat of SMS plant. New employment opportunities may be generated due to proposed modernization and expansion activities.

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Pre Feasibility Report for Proposed Expansion Project of Balmukund Sponge [21] & Iron Pvt. Ltd. , Manjhiladih, Gadi Srirampur, Giridih, Jharkhand) Patna, Bihar