PROJECT FEASIBILITY REPORT Expansion of M/S Sri
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M/s Sri Venkatesh Iron & Alloys (India) Ltd PROJECT FEASIBILITY REPORT Expansion of M/s Sri VenkateshIron& Alloys (India) Limitedby addition of 2 induction furnaces 2×12T (73,500 TPA), Billet Caster 72,000 TPA along with Captive Power Plant of capacity 16MW At Village :Lapanga, PO-Bhadaninagar, District -Ramgarh, State Jharkhand Applicant M/s Sri Venkatesh Iron & Alloys (India) Ltd At- Lapanga, P.O. –Bhadaninagar, Dist –Ramgarh ,Jharkhand ENVIRONMENT CONSULTANT VARDAN ENVIRONET (QCI/NABET ACCREDITED NO. NABET/EIA/1619/RA0037) D-142, SEC. 57 GURGAON (HARYANA) E-MAIL: [email protected] CONTACT: 0124-4291036, 09899651342 M/s Sri Venkatesh Iron & Alloys (India) Ltd CHAPTER –1: INTRODUCTION - PROFILE OF INDUSTRY Steel is crucial to the material development of any modern economy. It is a product of a large technologically complex industry having strong forward and backward linkages in terms of material flow and income generation. All major economies are not only characterized by existence of a strong steel industry, the growths of many of these economies have been largely shaped by the strength of their steel industries during their early stages of development. Some of the rapidly expanding newly industrialized countries like South Korea, China, and Brazil amongst others have built up substantial capacities not only to support their rapidly growing domestic economies, but also to export significantly to mark their presence in international markets. India has seen nearly a century of steel making as it stands on the threshold of a new era. The face of Indian Iron and Steel Industry is changing at such a fast pace that it is difficult to focus it now in the historical perspective. Steel is a core industry and thus its demand is strongly linked to overall level of economic activity in the country. 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. Liberalization and opening up of economy has given a new vitality to this sector. Demand and production have been growing at a healthy rate for past two years and forecast for next ten years is very bright. As the process of economic development takes off growth rate in industrial and infrastructure sectors such as capital goods, power, transport, telecommunication and hydrocarbons also increases leading to increased steel consumption. The electric steel industry, which initially started as a result of general steel shortage and dual pricing policy in the country in the past, has grown significantly in the recent years. The older units have been modernizing while new units have been set up with latest technology enabling reduction in cost of production. The major factors contributing to the existence and growth of the industry are as follows: • Lower investment cost and shorter gestation period as compared to BF-BOF route of steel making. • Ability for wider dispersal. • Less strain on transport and other infrastructural facilities. • Fewer unit operations. • Non-dependence on metallurgical coke and coking coal. • Less manpower per ton of steel produced. • Short conversion time from raw material to finished products. • Lowe rEnvironmental and pollution problem. • Flexibility in production of different qualities of steel and alloy steel. M/s Sri Venkatesh Iron & Alloys (India) Ltd Besides this above factors the Induction Furnace method of manufacturing steel, allows flexibility in the charge mix, amounts to reduced electricity consumption and decreased refractory electrode consumption which has resulted in the manufacture of international quality steel. Since India has rich reserves of coal, and the technology for manufacturing sponge iron is no more new, sponge iron production seems to have a bright future. 1.1 COMPANY AND DIRECTORS’ PROFILE M/s Sri Venkatesh Iron & Alloys (India) Ltd is a public limited company carrying out business in production of sponge iron. The Group has a long experience in mineral mining and metal trade also. The company has been promoted by a group of experienced businessmen who are presently engaged in manufacturing and trading business of various products. 1.2 Details of Project Proponent M/s Sri Venkatesh Iron & Alloys (India) Ltd Directors: Mr. Kamal Kumar Agarwal Mr. Pradip Kumar Kedia Mr. Ankit Kedia Address: South City Garden, Tower-6, Flat No.4A, Tollygunge Fari (Mahavirtolla), Kolkata-700053 (WB) SL Name & Designation Age Qualification Experience No About 35 years in Stone Mining & Crushing, Mica Trading and 15 years 1 Sri KamalkumarAgrawal 54 B. Com. Sponge Iron/ MS Ingot Production and other sector. About 28 years in Stone Mining & 2 Sri Pradeep Kr. Kedia 49 B. Com. Crushing, and 15 years in Iron & Steel Production and other sector. About 10 years in Iron & steel 3 Sri AnkitKedia 28 B. Com. Trading and Sponge Iron Manufacturing and other sector. 1.3 COST OF EXISTING & PROPOSED PROJECT: Existing unit of the plant – 4x100 TPD DRI, was established at the cost of Rs. 41.82 crores and the proposed units of 2x12 T Induction Furnace (SMS) with CCM and 16 MW CPP is estimated Rs. 86.67 crores. The total project cost after expansion is estimated as Rs. 128.49 crores. Power will be used M/s Sri Venkatesh Iron & Alloys (India) Ltd in-house for operation of the induction furnace and Sponge iron. Present permission for power withdrawal from JSEB is 0.85 MW. No additional permission from JSEB shall be sought. Power from JSEB shall be drawn only in case of emergency. 1.4. LOCATION AND LAND USE BREAKUP The area is having a very good infrastructural facility in terms of road connectivity as SH Ramgarh- Patratu-Ranchi is at a distance of 0.60 Km and NH 23 at a distance of 14.55 Km from site, which is located at Vill – Lapanga, P.O. – Bhadaninagar, District – Ramgarh Jharkhand. Total Land Area – 14.37 acres. Proposed approximate use of Land: SL No TYPE OF USE AREA (Ha.) 1 Plant area after expansion 2.63 2 Administrative offices and other buildings. 0.06 3 Roads and Paved Area 0.58 4 Storage and solid waste handling area 0.77 5 Green Belt & open area 1.78 TOTAL LAND ACQUIRED 5.82 1.5. IMPLEMENTATION SCHEDULE OF PROPOSED EXPANSION Based on the consideration that pre-project activities are accomplished prior to the award of the main machinery order, an implementation period of 24 months from the date of signing / effectiveness of the contract 1.6 CONNECTIVITY Road The proposed project site is located near DMR Pucca Road at aerial distance of 0.47 Km, SH-2 Ramgarh-Patratu-Ranchi is at a aerial distance of 0.60 Km and NH 23 at a distance of 14.55 Km from site. The location is also just 13 Km away from Ramgarh. Rail The Nearest Railway Siding is Bhurkunda at aerial distance of 2.50 Km (7.0 Km by road) and Barkakana Goods Shed at aerial distance of 7.52 Km (10.0 Km by road). The railway line connecting above two stations passes at 0.65 Km from the site. M/s Sri Venkatesh Iron & Alloys (India) Ltd CHAPTER –2 :BRIEF DESCRIPTION OF PROJECT 2.1 INTRODUCTION Sponge Iron or Direct Reduced Iron, DRI as it is popularly known, is a high ferrous content charge material and is used as a substitute for steel scrap as the primary raw material in the Induction Furnace, during the process of manufacture of steel. It can be produced both in the lump and pellet form and in a compact and briquetted form known as hot briquette iron. Sponge Iron is becoming increasingly important around the world as a raw material source for high quality steel; India being no exception. In the mid- seventies, the Department of Steel had identified that sponge iron would play a major role in the growth of the secondary steel sector. Apart from making the secondary steel sector less vulnerable to fluctuations in the international scrap prices by reducing dependence on imports, increased domestic production of sponge iron and the consequent reduction of scrap imports have led to substantial savings in foreign exchange. 2.2 EXISTING UNIT: DRI - SPONGE IRON Sponge iron or DRI (direct reduced iron) is the product obtained from direct reduction of iron ore with an iron content varying from 83 to 92%. Reduction causes elimination of oxygen leaving behind a honeycomb like porous structure which is “Spongy” in nature. Hence the name Sponge Iron 2.2.1 PROCESS: Selection of a suitable production process and the capacity of the production units form the nucleus around which the basic concept of a plant is developed. While the selection of a process takes into account factors like type of products, availability and amenability of local raw materials, process status, specific energy consumption, level of energy required, and environmental pollution etc., the capacity selection of major units would depend on the volume of production, available unit sizes, economies of scale etc. The process of manufacture of sponge iron is very simple. The percentage of oxygen associated with iron as oxide is removed from the ore particle and the process is often referred to as "Percentage Reduction"; whereas the percentage of iron forming a part of the whole iron, and which exists in the metallic form, is called the degree of metallization in sponge iron making technology. There are two well-established processes for the manufacture of sponge iron, namely: (a) The reformed natural gas process i.e. By the gaseous reduction of the iron ore. (b) Coal based Rotary Kiln process- Solid reduction. The basic raw materials required for the production of the sponge iron are the ore, coal and lime stone. The plant consists of iron and coal crushing plant for lime stone is envisaged.