M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. Pre-Feasibility Report For Mini-Integrated Steel Plant of 1,32,000 Metric Tons/ Annum TMT/MS Rods Production near Haraginadoni Village, Taluk & District,

CONTENTS

Chapter No. Description Page No.

1 Executive Summary 02

2 Introduction of the Project 04

3 Project Description 06

4 Site Analysis 11

5 Planning Brief 13

6 Proposed Infrastructure 21

7 Rehabilitation & Resettlement (R&R) Plan 22

8 Project Schedule & Cost Estimates 27

9 Analysis of proposal (Recommendations) 30

Page 1 of 33 M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. Pre-Feasibility Report For Mini-Integrated Steel Plant of 1,32,000 Metric Tons/ Annum TMT/MS Rods Production near Haraginadoni Village, Bellary Taluk & District, Karnataka

1. EXECUTIVE SUMMARY

Name of the Project M/s. Sri Subramanya Sponge Iron Pvt. Ltd.

Address of the Proponent VBR Nilayam, Ground Floor, 1st Cross Sowdagar Colony, Vidya Nagar Bellary-583 104, Karnataka,

Project Location Sy. Nos. 135, 136, 137, 138, 139 & 140 Haraginadoni Village Bellary Taluk & District Karnataka State

Total Plot Area Present: 14.80 Acres Future: 42.0 Acres Total: 56.80 Acres

Type of Land Agricultural Land being converted for Non- Agricultural Purpose

Plant Capacity Mini-Integrated Steel Plant of 1,32,000 Metric Tons Per Annum (TPA) Capacity TMT/MS Roads Production Phase I 2 x 75 TPD Sponge Iron Plant

Phase II 2 x 100 TPD Sponge Iron Plant 2 x 20 TPH Induction Furnace With ingot/ billet caster

Phase III 1 x 25 TPH Rolling Mill 8 MW Captive Power Plant

Raw Materials Raw Material Annual Source Quantity

Iron Ore 1,58,000 TPA Through Lumps/ Pellets E-Auction Non-Coking 1,10,500 TPA Indigenous/ Coal Imported Limestone/ 3,400 TPA Within Dolomite Karnataka Pig Iron 36,000 TPA Local Sources Ferro-Alloys 2,500 TPA Local Sources

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Water Requirement Project Phase: 45-50 KLD (Max.) Operational Phase: 375-400 KLD Source: Ground Water from Bore Wells

Power Requirement Project Phase: 4-5 MW Operational Phase : 25 MW Source: Gulbarga Electricity Supply Company Limited (GESCOM), Karnataka Total Man-power Project Phase 100-120 (Max.) Operational Phase Phase I 50 Phase II 125 Phase III 125 TOTAL 300

Total Project Cost Phase I Rs. 35.00 Crores

Phase II Rs. 78.00 Crores

Phase III Rs. 62.00 Crores

TOTAL Rs. 175.00 Crores

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2. INTRODUCTION 2.1 General: Opening up of Indian Economy since 1990 onwards and with the globalization of the world Economy, has resulted in enormous growth of Indian Economy during the last two decades, achieving a status of one of the largest fast growing economies in the world, clocking 6-8% annual cumulative GDP growth. The standard of living of the population / citizens of any country / economy is measured on the basis of per capita consumption of steel, power / energy, literacy level (Educational), etc. One of the major factors considered to access the living index for comparison purpose among the comity of Nations of the World is the per capita consumption of electricity and steel.

Due to economic liberalization and encouraging private sector in every sector of development of economy, like Power, Steel, Aviation, Oil Exploration, Transportation, Infrastructural Development, etc. Indian economy in the last two decades, has grown enormously in size, value and is branded as a vibrant developing Economy. Several medium sized Local Businessmen, who have established themselves in business, with related activities, have started to explore the opportunities to invest in manufacturing sector, Technology Development, Trading and export of services from India.

Considering the above aspects, two dynamic entrepreneurs viz. Sri. B Bhaskar Naidu and Sri. B. Kristaiah, both from the Iron Ore Rich in Karnataka, have established M/s. Sri Subramanya Sponge Iron Pvt. Ltd., (SSSIPL), in the year 2007. They had installed 1 x 75 Tons per Day (TPD) Sponge Iron Plant, to produce the sponge iron from iron ore lumps and pellets, to cater to the growing demand for sponge iron in Bellary-Hospet region of Karnataka State. Subsequently, due to various reasons, the industry

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was closed by the Karnataka State Pollution Control Board, during September 2011.

The industry was declared as NPA by the Bank(s) and the matter was referred for one time settlement and new management has taken over the company entirely, during the period April/ May 2018. Due to various technical and other reasons, the New Management had decided to retain and continue the business in the same name viz. Sri Subramanya Sponge Iron Pvt. Ltd.

2.2 Identification of project and project proponent (in case of mining project a copy of mining lease / letter of intent should be given): Identification of Project Project Proponent Project: Mini-Integrated Steel M/s. Sri Subramanya Sponge Iron Pvt. Ltd. Plant to produce TMS/MS Bars Director(s): of 1,32,000 Tons/ Annum in Sy. Sri. Tathineni Srinivas and Sri. S. N. Singh No. 135, 136, 137, 138, 139 & 140 VBR Nilayam, Ground Floor, 1st Cross of Haraginadoni Village in Sowdagar Colony, Vidya Nagar Bellary Taluk & District of Bellary-583 104, Karnataka, India Karnataka State. Email Id: [email protected]

2.3 Brief description of nature of the project: At the time of taking-over by the New Management, M/s SSSIPL is having a 1x75 Tons per Day (TPD) capacity Sponge Iron Plant, installed at the site. Also, the civil foundations for another 75 TPD capacity sponge iron plant have been completed. After deep and through initial investigations of the South Indian Market, availability of raw materials, labour, other logistical supports and the government incentives supporting the sector, the New Management of this industry have chosen to establish a mini-integrated steel plant to manufacture finished products of construction steel (TMT/ MS Bars), along with a 8 MW Co-Generation Power Plant, in the following Three Phases:

Phase I 2 x 75 TPD Sponge Iron Plant

Phase II 2 x 100 TPD Sponge Iron Plant

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2 x 20 TPH Induction Furnace With ingot/ billet caster

Phase III 1 x 25 TPH Rolling Mill 8 MW Captive Power Plant

2.4 Importance of the Project to the Country and the Region The future demand for TMT/ MS rods, like many other construction materials, is a function of interrelated variables. Following are the factors that determine the magnitude and trend of the demand for construction steel in the country:  Overall economic development level and growth trend of the country  The pattern and growth trend of construction industry  Expected technological changes that affect the structure of the construction industry  Government policies and regulations that have impact on the future level and trend of the construction activities and size of population and its growth

2.5 Demand- Supply Gap: There is a good demand for Construction Steel (TMT/ MS bars) from the Construction Industry, in the nearby cities/ towns like Bellary, Hosapate, Sandur, Kudligi, Ananthapur (A.P) etc., due to various developmental activities taking place in the region.

2.6 Imports vs. Indigenous Production: It is also preferable for indigenous production of construction steel, in the proposed Bellary District, due to various reasons like proximity to raw materials, logistics support, potential market etc. and import may not be as economically viable as indigenous production.

2.7 Export Possibility: Not envisaged at this stage, as there is enough demand in the local market.

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2.8 Domestic/ Export Markets: Export of product is not required, due to the fact that there is enough demand in the local market and also the proposed production quantity is very marginal.

2.9 Employment Generation (Direct and Indirect) due to the project. In the proposed project related units, the plant is designed to operate 24 hours/ day (3 shifts per day), whereas all the administration, finance and commercial departments will work only, in the day shift. About 300 direct employment is generated and 350 indirect employment is likely to be generated. The manpower required for operation and maintenance of the proposed plant is estimated as below:

Category Phase I Phase II Phase III Total

Managerial 02 04 02 08

Supervisory 06 08 08 22

Skilled 09 25 20 54

Semi-Skilled 13 38 40 91

Unskilled/ other 20 50 55 125

TOTAL 50 125 125 300

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3. PROJECT DESCRIPTION

3.1 General The proposed project is a Mini-Integrated Steel Plant to manufacture TMT (Thermo-Mechanically Twisted)/ MS (Mild Steel) Rods, of 1,32,000 Tons Per Annum Capacity, based on Sponge Iron Route.

3.2 Type of project incl. interlinked and interdependent project, if any: It is an independent project, to produce Construction Steel (TMT/MS Rods), using Iron Ore Lumps/ Pellets as raw material, with all in-built (integrated) facilities. Hence, there are no interlinked and inter-dependent projects.

3.3 Location The proposed unit is being located in an extent of 56.8 acres of industrially converted land (applied for) in Sy. Nos. 135, 136, 137, 138, 139 & 140 of Haraginadoni Village, near Kudatini, in Bellary Taluk & District of Karnataka State. The chosen project site is adjacent to the Village Road, connecting Haraginadoni Village with Bellary-Hospet National Highway (NH-63). It is at about 5.2 km, from the National Highway (NH-63), in the state of Karnataka. The chosen site is about 2.5 Km from Haraginadoni village, and about 15 KM from the District Head Quarters i.e. Bellary.

Points Latitude Longitude A 15009’18.63” N 76046’51.82” E B 15009’12.30” N 76046’50.74” E C 15009’11.60” N 76046’59.39” E D 15009’18.54” N 76046’59.76” E E 15009’19.36” N 76046’54.36” E F 15009’18.22” N 76046’54.12” E

The location of the chosen site is shown below:

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Project Site

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3.4 Details of alternate sites, considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. Not applicable, due to the fact that, 1 x 75 TPD capacity sponge iron plant was established by the earlier management and the new management wants to make it as a mini-integrated steel plant, by way of forward integration-cum- expansion, in the same plot and the surrounding areas.

3.5 Size or magnitude of operation: The proposed mini-integrated steel plant will be a having an installed capacity of 1,32,000 Tons Per Annum (TPA) of TMT/MS Rods production. The proposed unit will be implemented in Three Phases, as given below:

Phase I 2 x 75 TPD Sponge Iron Plant

Phase II 2 x 100 TPD Sponge Iron Plant 2 x 20 TPH Induction Furnace With ingot/ billet caster

Phase III 1 x 25 TPH Rolling Mill 8 MW Captive Power Plant

3.6 Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc. should be given): In the proposed mini-integrated steel plant of M/s Sri Subramanya Sponge Iron Pvt. Ltd., it is envisaged to adopt Pre-Heating Technology based Sponge Iron Units, followed by Induction Furnaces with billet/ ingot caster and a Rolling Mill. In addition, there will be 8 MW capacity Captive Power Plant for power generation. The plant will be designed with zero percentage wastewater generation, controlled air pollution system and zero solid waste generation, using more advanced pollution control equipment. The description of various production units, is given below:

IRON MAKING A. Hot Metal: Electric pig iron furnace (EPIF), Blast furnace (BF) process.

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B. Direct reduced: Direct reduction processes based on solid reductant.

Both steel scrap and DRI which are the main input materials for steel making in the mini steel plant, are not easily available in the country and their prices have been fluctuating and are on the increase. Hence SSSIPL have decided to put up an integrated mini steel plant, starting from iron ore.

Commercially viable and technologically established processes for production of iron from iron ore are direct reduction process based on solid reductant and hot metal production processes. Being highly power intensive, EPIF process has not been considered for the proposed project.

If BF process is considered for iron making downstream process for converting hot metal into liquid steel is to be BOF steel making or high capacity EAF steel making (since hot metal optimally constitutes about 30% of metallic charge in EAF steel making).

Thus, the only option available for the SSSIPL project for iron making is production of sponge iron or direct reduced iron (DRI) based on solid reductant and hence the same has been considered for the proposed project, and the same is already implemented partially (by the earlier Management).

COAL – Based Direct Reduction (DR) Process. Direct reduced iron (DRI) is produced by direct reduction process in which oxides of iron ore are reduced by non-coking coal at a temperature range of 700 – 11000C, much below its melting point. Of the installed DR plants based on solid reductant, SL/RN process accounts for over 50% of total production. The balance is shared by ACCAR, CODIR, DRC, TDR, OSIL, KINGLOR METOR and other processes.

ROTARY KILN processes are far better established amongst all coal based processes. There are a number of Rotary Kiln plants in operation and a

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number of them are under installation in the states of Chattisgarh and also in Karnataka. Of the different rotary kiln processes available the SL/RN process is the most widely adopted process and has the maximum population of operating plants especially with annual capacity in the range of 30,000 tons.

The original technology supplier for SL/RN process is LURGI, GERMANY. However this technology is now available locally and there are a number of suppliers who can give the technology and drawings with process guarantees, and the ordering of all the critical equipment is completed. Certain equipment have already started arriving at the project site. All the equipment are being sourced locally after completing the evaluation of the available technology suppliers. Hence the proven and commercially established SL/RN process is adopted for the SSSIPL Plant.

The annual requirement of sponge iron for the SSSIPL plant is around 104,000 tons. Hence, SSSIPL are installing 2 Kilns of capacity 30,000 tons per annum/kiln (100 Tons per day production capacity) along with 2 kilns of 22,500 tons per annum/ kiln (75 Tons per day production capacity). The first kiln of 75 TPD is already installed and is closed due to various reasons enumerated above. The civil foundation work for the second 75 TPD sponge iron kiln is completed and the installation will start only after obtaining the necessary approvals. The balance 2 kilns of 100 TPD capacity, will be implemented as part of Phase II of the project.

STEEL MAKING PROCESS Induction furnace and Electric arc furnace processes are considered for a mini integrated steel plant.

INDUCTION FURNACE: India has witnessed an unprecedented growth in induction furnace steel making since 1970s. The factors, which contributed to

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the growth in induction furnace steel making over electric arc furnace steel making in India are as follows.  For a given power unit the daily liquid steel melting capacity of a medium frequency IF is more than that of a regular powered arc furnace due to its inherent characteristics like nearly unit power factor operation, insignificant refining operation etc.  Induction Furnace can be connected with even weak power grids without any power disturbances on the mains supply.  Elimination of expensive graphite electrodes.  Use of inexpensive refractories  Low investment and operating costs.

ELECTRIC ARC FURNACE (EAF) EAF can melt 100 % solid charge comprising appropriate proportion of scrap and DRI/HBI. This is also an established process in creating an integrated steel plant of capacity in the range of 1 – 2 Million tons per year. In fact more than 33% of total steel produced in the world today is through EAF. There have been continuous developments in this process to increase productivity, decrease energy consumption and produce cleaner steel. However for the proposed low capacity mini-integrated steel plant operation of small size EAF based on DRI (Coal based) will call for requirement of high MVA power connection thereby dependence on grid support and also high specific consumption of power, leading to poor viability of steel making.

STEEL MAKING EQUIPMENT PROPOSED Considering the above facts, Induction Furnace is selected as the equipment for steel making in the proposed plant of SSSIPL. The production of liquid steel has been based on the maximum utilization of the DRI produced from its captive kilns, utilization of plant return scrap and purchased cold pigs. The average % of DRI in the charge mix is considered at 70 % and the balance will be made up of plant return scrap and purchased scrap or cold pigs. Based on

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this charge mix the production of liquid steel per year will be about 144,000 tons/year. It is proposed to install Two IF’s in the steel melt shop each of 20 tons capacity. A transformer of required capacity will feed each furnace. A tap-to-tap time of about 100-120 min. has been considered to be optimum for the IF’s considering this charge mix composition the tap-to-tap time matching with the casting time and annual operating days of the steel melt shop of 300 days, the heat weight per cycle considering the two furnaces together works out to about 40 tons.

The finished products from the plant are bars and rods of construction grades and sizes rolled in a rolling mill. The feed to a rolling mill producing such products is MS-Ingots. The liquid steel will be poured into the moulds and allowed to cool. After that, the moulds will be separated from the metal and the ingots will be stored, for further processing in the rolling mill.

The installation of induction furnaces will be taken-up in the second phase of the proposed project.

ROLLING MILL A bar and rod mill has been considered. The mill is envisaged to produce bars (including TMT bars) and rods in straight lengths. The proposed bar and rod mill will be equipped with a walking beam type reheating furnace of capacity 25 tons/hour and online rapid water quenching unit to impart Thermo- Mechanical Treatment (TMT) to rolled bars.

CAPTIVE POWER PLANT (CPP) A CPP will be installed to operate the proposed plant with minimum support from the state power grid for reducing electricity bill. The hot flue gas and char generated from the DRI kiln and excess coal fines generated during processing of as received non coking coal, required for the DR process will be fully utilized for power generation. Additional purchased coal will be used in

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order to achieve the full power generation in the CPP. It is envisaged to obtain the connection from the state power grid to support the emergency load of the plant for minimizing damages to critical equipment during shutdown of the CPP, to meet the plant balance power demands and also the peak power demands when the rolling mill is in operation. The proposed power plant will thus be equipped with both waste heat recovery boiler and fluidized bed combustion boiler for steam generation and associated turbo generator for generation of power.

The estimated requirement of power for the proposed plant works out to 25 MW. Hence to meet the part electricity demand of the plant a CPP of 8 MW capacity has been selected. The plant will consists of 4 nos. waste heat recovery boilers, of which two will be of capacity 10 tons/hr per sponge iron kiln of 100 TPD and two will be of capacity 7 tons/hr per sponge iron kiln of 75 TPD, one FBC boiler of capacity 30 tons/hr and one turbo generator of capacity 8 MW.

MAJOR PRODUCTION FACILITIES The configuration of the production units is chosen as the best possible and economical combination is summarized below:

Sl. Description Plant Units Remarks No. PHASE – I

1 Iron Making 2 x 75 TPD Coal based Sponge Iron Kilns

PHASE – II

2 Iron Making 2 x 100 TPD Coal based Sponge Iron Kilns

3 Steel Making 2 x 20 TPD Induction Furnace

PHASE-III

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4 Rolling Mill 132,000 TPA TMT/MS Rod Mill

5 Captive Power Plant 8 MW (4 MW-WHRB & 4 MW-FBC)

Process Flow sheet The process flow sheet for the plant is given as Annexure-1.

3.7 Raw material required along with estimated quantity, likely source, marketing area of final product/s, Mode of transport of raw material and finished products: The raw materials required for the proposed sponge iron units of the mini- integrated steel plant are sized iron ore/ pellets, limestone/ dolomite and coal. The input materials for the induction furnaces of the proposed mini- integrated steel plant are the products that will be generated from the sponge iron units along with limestone/ dolomite, scrap, ferro-alloys and pig iron. MS Ingots/ billets from the induction furnace are the raw materials to the rolling mill and the flue gases, char and coal dust from the sponge iron plant for power production in the captive power plant. The annual requirement of raw materials, their source and mode of transport etc. have been given below:

Raw Material Annual Source Mode of Quantity Transport

Iron Ore 1,58,000 TPA Through E-Auction By trucks Lumps/ Pellets Non-Coking 1,10,500 TPA Indigenous/ Imported By trucks Coal Limestone/ 3,400 TPA Within Karnataka By trucks Dolomite Pig Iron 36,000 TPA Local Sources By trucks Ferro-Alloys 2,500 TPA Local Sources By trucks

The products produced from the proposed mini-integrated steel plant i.e. TMT/MS rods, will be transported to the dealers/ distribution agencies, by

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way of trucks/ trailers. The potential market will be predominantly Bellary and surrounding Koppal, Raichur districts and Anantapur district of A.P.

3.8 Resource optimization/recycling and reuse envisaged in the project, if any, should be briefly outlined: In the proposed mini-integrated steel plant, ii is envisaged to reuse/ recycle the following wastes/ by-products, so as to reduce the solid waste generation: Production Unit Waste(s)/ By- Proposed point Remarks products generated of reuse Sponge Iron Coal Fines Power Plant Units Rolling Mills Steel Scrap Induction furnace

3.9 Availability of water its source, Energy/power requirement and source should be given: Plant Water Requirements: Water will be required for cooling of equipment, for dust suppression by water spray and drinking, firefighting etc. This requirement of water will be met from bore wells located within the plant site. Also, the management is proposing to obtain necessary permission from Karnataka Udyog Mitra and also the State Water Resources Department, for withdrawing 400,000 litres of water per day, from high level canal of . The fresh/ make- up water requirement for the plant is estimated as below:

Facility Make-up Water m3/Day Sponge Iron Plant 105 Induction Furnace 144 Rolling Mill 88 Captive Power Plant 48 Drinking & Other 15 Miscellaneous needs TOTAL 400

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Energy/ Power Requirements: The connected load for the plant is estimated to be around 25 MW with power factor of 0.8 and the Maximum demand 20 MVA. Capacitors will be installed to improve the Power factor to 0.9 as per statutory requirement. Power will be supplied to main receiving station of the plant from Gulbarga Electric Supply Company, the State agency for power supply. This will be integrated with the power that is going to be generated from the proposed 8 MW Captive Power Plant.

Fuel Oil: Fuel oil is required for startup of the sponge iron kilns; startup of the FBC boiler and in the reheating furnace in the rolling mills. The total fuel oil requirement for the above uses is estimated to be about 3400 tonnes/year. This will be procured from the nearest terminal of any of the major suppliers e.g. HPCL, IOCL or BPCL. About 20 days storage of fuel will be maintained in the plant. In addition to fuel oil, about 1,500 litres / year of LDO will be needed for the transport equipment and other miscellaneous uses within the plant. Suitable storage tanks with metering devices for these fuels will also be provided.

3.10 Quantity of wastes to be generated (liquid and solid) and scheme for their Management/disposal: The major wastes that could be generated from the plant include the iron ore fines, coal fines, limestone/ dolomite fines, scrap, fly ash, bottom ash, kiln accretions, SMS slag etc. Of these, the iron ore fines, limestone/ dolomite fines will be sold to nearby sinter/ pellet plants on periodical basis. The coal fines will be used in the power plant and also in the sponge iron plant. The SMS slag and kiln accretions will be used as a filling material in the low lying areas. The scrap will be used in the induction furnace.

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3.11 Schematic representations of the feasibility drawing which give information of EIA purpose Extract of the location showing in Topo-sheet (1:50000 scale) has been enclosed along with.

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4. SITE ANALYSIS

4.1 Location of Site The proposed mini integrated steel plant will be located over an extent of 56.80 acres of Private Land (Patta Land) bearing Survey Nos. 135, 136, 137, 138, 139 & 140 of Haraginadoni Village, Bellary Taluk, Bellary District, Karnataka. The proposed area forms part of Survey of India Topo-Sheet No. 57A/16.

4.2 Connectivity: The chosen project site has got a very good connectivity and is adjacent to the village road that connects Haraginadoni village with the Bellary-Hospet National Highway (NH-63). Kudatini Railway Station is in close proximity i.e. at a distance of 11-12 km.

4.3 Land Form, Land use and Land Ownership: The chosen project site is the agricultural land which belongs the local agricultural farmers of Haragnadoni village, Bellary taluk & district. The land will be converted for the development of the project.

4.4 Topography (along with map) The sanctioned area is of gradually plain area, with a very little/ gentle slope. No major streams/ nalas pass through the proposed site. Some seasonal rainwater steams pass nearby the proposed area and due care will be taken to protect them. The topo-map extract showing the location on 1:50000 scale, is enclosed.

4.5 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 forests, 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

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The chosen site is not part of any notified area, from environmental perspective. The surrounding environmental features are as under:

Nearest Sensitive Area Name Distance from the Project Forest Chikkantapur RF: 5.1 Km SW Bellary RF: 6.5 Km S National Park -- None within 05 km Wild Life Sanctuary -- None within 05 km Eco-Sensitive Areas -- None within 05 km Major Water Bodies Stream to Chatram halla: 300 m E Streams to Elumori halla: 0.6Km NE Streams to Odakana halla: 1.1Km W streams to Dasara halla: 2.2 Km W Natta halla: 2.6 Km W Streams to Banakana halla: 2.0 Km N Streams to Urumudra halla: 0.75 km N Sige halla: 8.2 Km W Tungabhadra High Level Canal: 8.4 Km NE Kere: 6.3 Km E Critically Polluted Areas - None within 05 km CRZ -- None within 05 km

4.6 Existing infrastructures: The earlier management had installed 1 x 75 TPD sponge iron kiln and completed the civil foundation works for the second 75 TPD sponge iron kiln. Also, the necessary site infrastructural facilities like rest shelter, small office, etc. have been developed at the site. Also, the proposed project site is connected by an all-weather mud road, which connects Haraginadoni village with National Highway-63 (between Bellary and Hosapete).

4.7 Soil classification: The entire area is covered with black cotton soil. There are no rocky patches and marshy areas within the proposed project area. Hence no special foundations are required.

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4.8 Climatic data from secondary sources: The climate in Bellay is hot in summers and pretty good in winter. During summers, the temperature reaches upto 390C and in winters it is usually around 170C. The average Rainfall of Bellary Taluk is about 438mm and that of Bellary District is about 588mm. The climate history of Bellary is summarized in the table below:

Oct

Jan Apr

Feb Mar

Dec

Nov

May

July

Sept June August Temperature (in oC) Record High 36 39 42 47 44 43 39 43 42 41 38 39 Average High 31 34 37 39 39 35 33 33 33 32 30 29 Average 17 19 23 26 26 25 24 24 23 23 20 19 Low Record Low 8 14 15 19 19 20 20 17 12 12 10 11 Precipi- tation (mm) 2 2 6 9 33 61 72 48 138 95 39 12 Average Rainy Days 1 0 1 1 4 6 8 9 9 9 4 1 Humidity (%) 54 44 39 40 47 58 62 65 66 70 66 62

4.9 Social Infrastructure available: The area is part of Bellary District and is at about 16km from the district headquarters, where all necessary social infrastructural facilities like educational facilities, hospital/ medical facilities, etc. are available. Also, in the nearby Kudatini (11km), all required facilities like police station, banks, schools, colleges, primary health centre, veterinary hospital, etc. are available.

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5. Planning Brief

5.1 Planning Concept (type of industries, facilities, transportation etc.) Town and country Planning Development Authority classification: The proposed project site is away from human habitations. Several industries are existing within 3-5km radial distance and few other industries are being planned. The proposed site is well suited for the project, due to its location, proximity to various raw materials, availability of ground water, logistic support etc.

5.2 Population Projection: As per 2011 census, there are about 2573 peoples living in the nearby Haraginadoni village and there are about 487 households.

5.3 Land use planning (breakup along with green belt etc.): The proposed plant area is Patta Land (private land). It is barren and no much major vegetation is seen in the area. To establish the proposed 1,32,000 TPA mini integrated steel plant, total land requirement is estimated as 56.8 acres. The broad classification of the required land is as under: The land area distribution of the proposed Plant is given below:

Land Utilization Plan Extent Description (in Acres) Area for Raw Materials Storage 12.0 Area for Buildings (plant & non-plant) 15.0 Roads, Drains & Other Open areas 10.8 Subtotal 37.8 Area for green belt development 19.0 Total Area for the proposed plant 56.8

5.4 Assessment of Infrastructure Demand (Physical & Social) As the proposed production is marginal, there will not be any additional requirement of any infrastructural facilities. The existing infrastructural

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facilities like roads, railway network, etc. can accommodate the above production levels.

5.5 Amenities/ Facilities: According to the requirement from technological processes and size of plant, the communication system facilities such as landline phones/ intercoms, wireless handsets, mobiles etc. will be provided. The Industrial CCTV will provide information to the main control room from various camera locations.

The control rooms will be air conditioned. The switchgear room and other electrical rooms will be provided with pressurized ventilation systems.

Suitable instruments will be provided for monitoring the various critical operational parameters, as per the recommendations of the concerned technology/ main equipment suppliers. Instruments will be selected considering good quality, high reliability, latest techniques, and easy availability. Thermal-resistors, thermocouples and infra-ray thermometers will be used to measure and monitor temperature. Electromagnetic intelligent pressure-transmitters and differential pressure transmitters will be used to measure and monitor pressure. Electromagnetic flow meters of hole plate or constant flow tube type will be employed to measure and monitor flow rate. For bin level measuring and monitoring, weighing device will be preferred. Electronic belt weigh feeders will be used in belt conveyor for all raw materials. To ensure reliable and accurate data from technological processes, a workshop will be provided which will be responsible for equipment application, maintenance and repair and calibration of measuring tools, automatic instruments and computer system.

Equipment for fire alarm system such as smoke detectors, temperature sensors and manually operated alarm system will be installed in main control room, high-voltage & low voltage power distribution rooms, transformer

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rooms, computer rooms and in cable channels. Necessary fire-fighting equipment like fire extinguishers, sand buckets etc. will be provided at strategic locations.

The total requirement of industrial quality compressed air will be about 1,800 Nm3/hr. This requirement will be met from a centralized compressor plant with Three (03) air compressors (including one standby) each of capacity 900 Nm3/hour at a discharge pressure of 7 Kscg. The units will be complete with after coolers, air receivers, piping and other accessories.

The total requirement of dry quality (instrument) air works out to 360 Nm3/hr. To meet this requirement of dry oil free instrument grade air, three non-lubricated type air compressors (including one standby) each of capacity about 200 Nm3/hr, at a discharge pressure of 6 to 7 Kscg will be provided. The system will be complete with necessary air drying units, air receivers etc.

Repair and maintenance facilities have been centralized in one building to take care of routine activities. The repair and maintenance shop will be equipped with facilities for machining, fabrication, assembly, auto servicing, electrical repairing, hydraulic and pneumatic equipment repairing, mould repairing etc.

A central store for storage of equipment, spares, consumables, lubricants etc. will be provided in the plant. The stores will be furnished with handling and storage facilities. A storage room has also been envisaged inside the stores building for storage of valuable items.

A well-equipped integrated testing laboratory for carrying out testing at various stages of production will be provided. The laboratory will also be utilized for testing of incoming raw materials and testing of products and by- products at various stages of production.

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6 Proposed Infrastructure

6.1 General To carry-out the production of construction steel i.e. TMT/ MS rods, various infrastructural facilities are required for the main activity as well as for environmental protection & pollution prevention.

6.2 Industrial Area (processing Area): The total plant area is about 56.8 Acres, of which about 15 acres has been allocated for housing of various industrial and auxiliary services. About 12 acres of land has been earmarked for storing of raw materials and products/ by-products.

6.3 Residential Area (Non Processing Area): As the proposed project is of marginal capacity, no residential facilities have been envisaged within the industrial unit.

6.4 Green Belt: Out of the total plant area of 56.8 acres, about 19 acres has been reserved for development of green belt. There is no forest area falling around the proposed project site. Besides common trees, natural vegetation grows during monsoon & fades away with the onset of summer. However, to absorb the dust due to vehicle movement on the haulage road and within the plant area, it is proposed to take-up plantation work, all along the boundary of the project site. Also, it is proposed to take-up tree plantation work on either side of the main approach road.

6.5 Social Infrastructure: There are few villages & hamlets within 10 kms radius zone. Presently the people of these villages are engaged in seasonal agricultural activities & thus are not employed fully. Some persons will be directly working in the plant

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while some shall be on contractual role depending upon the nature and period of the requirement of the production activities.

6.6 Connectivity (Traffic & Transportation Road/Rail/Metro/Water ways etc)]: The proposed mini integrated steel plant will be located over an extent of 56.80 acres of Private Land (Patta Land) bearing Survey Nos. 135, 136, 137, 138, 139 & 140 of Haraginadoni Village, Bellary Taluk, Bellary District, Karnataka. The proposed area forms part of Survey of India Topo-Sheet No. 57A/16. The chosen project site has got a very good connectivity and is adjacent to the village road that connects Haraginadoni village with the Bellary-Hospet National Highway (NH-63). Kudatini Railway Station is in close proximity i.e. at a distance of 11-12 km.

6.7 Drinking Water Management (Source & Supply of water): Bottled potable water will be supplied from ISI marked agencies, for drinking purpose. The estimated water requirement is about 1400-1500 Liters/Day for Drinking Purpose. Drinking water will be being provided in well-maintained tank near to the rest shelter/ canteen etc.

6.8 Sewerage system: Various production units will have their own toilet facilities, along with associated septic tank-soak pit systems. Hence no centralized sewage treatment plant has been envisaged as part of the proposed project.

6.9 Industrial Waste Management: The major wastes that could be generated from the plant include the iron ore fines, coal fines, limestone/ dolomite fines, scrap, fly ash, bottom ash, kiln accretions, SMS slag etc. Of these, the iron ore fines, limestone/ dolomite fines will be sold to nearby sinter/ pellet plants on periodical basis. The coal fines will be used in the power plant and also in the sponge iron plant. The SMS

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slag and kiln accretions will be used as a filling material in the low lying areas. The scrap will be used in the induction furnace.

6.10 Solid Waste Management: As explained in 6.9 above.

6.11 Power Requirement & Supply / Source: The connected load for the plant is estimated to be around 25 MW with power factor of 0.8 and the Maximum demand 20 MVA. Capacitors will be installed to improve the Power factor to 0.9 as per statutory requirement. Power will be supplied to main receiving station of the plant from Gulbarga Electric Supply Company, the State agency for power supply. This will be integrated with the power that is going to be generated from the proposed 8 MW Captive Power Plant.

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7. Rehabilitation & Resettlement Plan

7.1 Policy to be adopted (Central/ State) in respect of the project affected persons including home oustees, land oustees and landless labourers (a brief outline to be given). In the proposed project site, there are no residential units/ dwellings. Hence there are no home oustees. The agricultural farmers whose land will be converted for industrial purpose will be given one employment per house. In addition to this the literacy rate and better living standards shall increase due to the enhanced earning capacity of villagers. It is also proposed to develop green belt which increase aesthetic value and also act as a pollution sink.

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8. PROJECT SCHEDULE & COST ESTIMATE

8.1 General Any developmental activity needs to have adequate resources, be in the form of man-power or machinery. Careful planning and timely deployment adequate funds to have the required resources, is of paramount importance for any successful project implementation. In the following paras, it is explained about the project schedule of resources and the required capital expenditure estimates.

8.2 Construction Schedule: For the proposed mini-integrated steel plant, due to the fluctuating market conditions, it is envisaged to implement the project in three phases, as explained in previous chapters. The implementation schedule of the various phases of the project is as under:

Phase-I 06 Months from Zero Date

Phase-II 24 Months after Phase-I

Phase-III 24 Months after Phase-II

TOTAL 54 Months from Zero Date Note: Zero Date refers to the date, by which all necessary statutory approvals are in place and financial closure is complete.

Critical and long delivery equipment have been identified and ordering is being processed. Intermediate/ critical milestones have been identified and project monitoring will be carried out vigorously to ensure commissioning of the plant as planned.

8.2 Capital Cost: The estimated capital cost of the proposed mini-integrated steel plant project is about Rs. 175 Crores. The estimates are summarized in the following table.

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SUMMARY OF ESTIMATED COST OF THE PROJECT (Rs. in Crores) Sl. Description Phase Phase Phase Total No. I II III 1 Land & Site Development 7.00 21.00 - 28.00 2 Civil & Structural Works 2.00 7.00 4.00 13.00 3 Main Plant & Equipment including 20.00 42.00 52.00 114.00 Miscellaneous Fixed Assets 4 Contingencies 2.00 4.00 4.00 10.00 5 Pre-Operative Expenses 1.50 1.50 0.80 3.80 5 Margin Money for Working Capital 2.50 2.50 1.20 6.20 Total Project Cost 35.00 78.00 62.00 175.00

Cost of the project includes cost towards land and site development, buildings, plant and machinery including miscellaneous fixed assets, preoperative expenses, provision for contingencies and margin money for working capital.

8.2.1 Land The total Land requirement for the proposed mini-integrated steel plant project is 56.8 acres.

8.2.2 Civil and Structural works The facilities included under this head are factory buildings for main and auxiliary units, open yards, conveyor galleries and junction houses, administration office, non-factory buildings and other miscellaneous civil engineering works. The cost of these facilities have been estimated on the basis of preliminary layouts and designs of facilities discussed in the previous chapters, taking into consideration the cost of construction materials prevailing in the region.

8.2.3 Plant and Machinery Cost of plant and machinery includes, besides the basic cost, costs towards spares, taxes and duties, inland transport and transit insurance etc. and also the cost towards erection & testing of the equipment.

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Necessary provisions for GST have been provided. Inland transportation of plant and machinery has been provided.

8.2.4 Contingencies Provision towards contingencies has been made as lumpsum.

8.2.5 Pre-Operative Expenses Under this head, various pre-project/ pre-operative expenses such as salaries & wages (during construction), travelling, interest during construction etc., until project commissioning period, have been added.

8.2.6 Margin Money for Working Capital Provision has been made in the estimate towards margin money for working capital. Margin money is estimated as the 50% of the expenses for one month production requirement and would be financed in the same debt equity ratio as fixed capital.

8.2.7 Means of financing Project cost including margin money for working capital would be financed in the debt- equity ratio of 2:1. The corresponding amounts, of debt and equity works-out to be Rs. 117 Crores and Rs. 58 Crores respectively.

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9. RECOMMENDATIONS 9.1 Benefits of the Proposal to the Society: a. Developmental Activities are important for every citizen, not only for the products/ services it provides, but for the positive impact it has on the country’s economy. b. It provides additional jobs to rural educated youth c. Improvement in the surrounding infrastructural facilities and nearby villager’s quality of life will be improved. d. Programs that are taken-up as part of the Corporate Social Responsibility, will improve the literacy rate, improvement of village etc. e. Availability of construction steel, at competitive rates to the nearby cities/ towns, with an assured supply f. Additional earnings to the Government, in the form of Taxes, Royalty etc.

9.2 Conclusion(s): This upcoming project will meet the development needs of the surrounding community without causing any negative influence on the environment. Also, considering the availability of required raw materials in close vicinity and growing demand for the construction steel (TMT/ MS rods), especially in South India, it is highly recommended to go for the proposed Mini-Integrated Steel Plant, near Haraginadoni, in Bellary Taluk & District of Karnataka State, India. It can be summarized that the establishment of the proposed project will have a positive impact on the socio-economics of the area and lead to overall sustainable development of the region.

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