Pre-Feasibility Report
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PRE-FEASIBILITY REPORT 1.0 EXECUTIVE SUMMARY M/s- J.B. Rolling Mills Limited located at Trilokpur Road, Kala Amb, Village Johran, Tehsil Nahan and Dist. Sirmaur, Himachal Pradesh, this rolling mill plant manufactures TMT Bars, Angles, Channels, Flats and Beams (Girders) at present. M/s J.B. Rolling Mills Limited. Unit (II) is an existing composite Rolling Mills unit which plans to install four Induction furnaces each with capacity of 15 MT in addition to one induction furnace with production capacity of 28,800 MT/Annum ( in single shift ) at Trilokpur Road, Kala Amb, Village Johran, Tehsil Nahan and Dist Sirmaur, H.P. making the total capacity 2,34,000MT/annum of Billets/Ingots . M/s J.B. Rolling Mills Limited has applied for Consent to Establish (CTE) for one induction Furnace with concast (28,800 MT/Annum capacity) from HPSPCB (Application attached as Annexure III). The proposed addition will be established in the existing plant premises only. Project falls under Category A due to interstate boundary of Haryana within 10 Km as Metallurgical Industries (secondary metallurgical processing) Item 3(a) of the schedule of EIA notification of Sept 14, 2006 issued by MOEF & CC. Water for construction and domestic purpose will be drawn from Department of Industries and Commerce (DIC). Approximately 28 KLD water will be used for during operational phase. Existing Power load of 19,475 KW to run the additional plant & machinery during Construction and Operation Phase. Expected source is Himachal Pradesh State Electricity Board (HPSEB). Total Plot Area: 53.05Bigha/ 5.96 Ha Shivalik Solid Waste Management Ltd. Nalagarh, District-Solan, H.P. Page 1 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION Ferro-alloys are among the essential inputs required for steelmaking. It improves the quality of steel, by controlling the harmful impurities and at the same time improves the mechanical properties of steel through alloying. Growth in Global as well as domestic steel industry directly drives the demand of Ferro-alloys. Since Indian steel industry is under massive expansion, there is a tremendous potential for investment in Ferro-alloy production. Steel being a basic commodity for all industrial activities, quantum of its consumption is considered an index of industrial prosperity. Since independence, there has been a substantial growth in the steel sector in India from 1.5 Million Tons in 1950-51 to about 31 Million Tons at present. Additional steelmaking capacity of about 8 to 10 Million Tons /year exists in the secondary steel sector. Despite the above growth in the steel sector, the per capita steel consumption continues to remain at a level of about 27 kg only, compared to about 350 to 450 kg in the developed countries and 40 to 100 kg in some of the developing countries. Further, with nearly 20% of the world population, India’s contribution is only of the order of 3.4% of world steel production. Hence, short-term and long-term strategies are necessary in planning the development of the steel industry in the country to improve the level of per capita steel consumption. It is expected that with the measures taken by Govt. of India for promotion consumption of iron and steel and expected growth of Indian economy the requirement of steel will significantly increase and accordingly the domestic manufacturing capacity needs to be increase. Shivalik Solid Waste Management Ltd. Nalagarh, District-Solan, H.P. Page 2 SI. Parameters Description No 1 Identification of Project falls under Metallurgical Industries project (secondary metallurgical processing) Item 3(a) of the schedule of EIA notification of Sept 14, 2006 issued by MOEF & CC. 2 Project Proponent M/s J.B. Rolling Mills Limited 3 Brief description Addition four Induction Furnaces of 15 MT each of nature of the producing 2,05,200 MT/annum of Billets/Ingots project making the total capacity 2,34,000 MT/Annum. The production will be done within already established premises only. 4 Salient Features of the Project 4.1 Proposed plant Installation of four Induction Furnaces of 15 MT capacity for 2,05,200 MT/annum production 4.2 Total Plot Area Total Plot Area – 5.96 Ha ( 53.05 Bigha) 4.3 Location Trilokpur Road Kala Amb, village Johran, Tehsil Nahan and Dist. Sirmaur. Himachal Pradesh. 4.4 Water Water for construction and domestic purpose will be requirement drawn from DIC. Approximately 28 KLD water will be used for during operational purpose. 4.5 Source of water DIC (Department of Industries and Commerce Himachal Pradesh). 4.6 Wastewater Domestic waste water generated will be send to septic tank/ soak pit, hence no generation of sewage. Water shall be used in for cooling purpose in proposed project activity. The same shall be reused within the plant premises after neutralization and addition of makeup water. Shivalik Solid Waste Management Ltd. Nalagarh, District-Solan, H.P. Page 3 SI. Parameters Description No 4.7 Man Power 132 4.8 Electricity/ Existing Power load 19,475 KW to run the Power additional plant & machinery during Construction requirement and Operation Phase. Source: Himachal Pradesh State Electricity Board (HPSEB) 4.9 Alternative site The proposed addition will be established in the existing plant premises only. 4.10 Land form, Land Private land owned by M/s. JB Rolling Mills. Ltd. use and land ownership 5.0 Project cost The estimated cost of the Project is approximately Rs. 11,977.00 Lacs 2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT M/s J.B. Rolling Mills Limited Located at Trilokpur Road Kala Amb, Village Johran, Tehsil Nahan, Dist. Sirmaur, Himachal Pradesh. 2.2 BRIEF DESCRIPTION OF NATURE OF THE PROJECT M/s J.B. Rolling Mills Limited. Unit (II) is an existing composite Rolling Mills unit which plans to install four Induction furnaces each with capacity of 15 MT in addition to one induction furnace with capacity of 28,800 MT/Annum ( in single shift ) at Trilokpur Road, Kala Amb, Village Johran, Tehsil Nahan and Dist Sirmaur, H.P. making the total production of Ingots/Billets about 2,34,000 MT/annum . Shivalik Solid Waste Management Ltd. Nalagarh, District-Solan, H.P. Page 4 2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND/ OR REGION India is the world’s third-largest producer of crude steel (up from eighth in 2003) and is expected to become the second-largest producer by 2016. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labor. Consequently, the steel sector has been a major contributor to India’s manufacturing output. The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernization and up-gradation of older plants and higher energy efficiency levels. While plant closures and privatization are rare in India, the private sector is considered to be the engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India. 2.4DEMAND –SUPPLY GAP Steel production of India accounted for 14.33 million tons in 1990-91, which gradually increased to 36.12 million tons in 2003-04. Rapid rise in production has resulted in India becoming the 3 rd largest producer of crude steel in 2015 and the country continues to be the largest producer of sponge iron or DRI in the world. As per the report of the Working Group on Steel for the 12th Five Year Plan, there exist many factors which carry the potential of raising the per capita steel consumption in the country. 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. At the time of its release, the National Steel Policy 2005 had envisaged steel production to reach 110 million tonnes (mt) by 2019-20. However, based on the assessment of the current ongoing projects, both in greenfield and Shivalik Solid Waste Management Ltd. Nalagarh, District-Solan, H.P. Page 5 brownfield, the Working Group on Steel for the 12th Five Year Plan has projected that domestic crude 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.India is expected to become the world's second largest producer of crude steel in the next 10 years, moving up from the third position, as its capacity is projected to increase to about 300 MT by 2025. Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. 2.5 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT During Construction phase the labors and workers will be hired from nearby areas. Number of persons required during construction phase will be around 50 and about 132 persons are required during operation phase . 3.0 PROJECT DESCRIPTION 3.1 Type of Project M/s J.B. Rolling Mills Limited. Unit (II) is an existing composite Rolling Mills unit which plans to install four Induction furnaces each with capacity of 15 MT in addition to one induction furnace with capacity of 28,800 MT/Annum ( in single shift ) at Trilokpur Road, Kala Amb, Village Johran, Tehsil Nahan and Dist Sirmaur, H.P.