PRE FEASIBILITY REPORT 1.0 Executive...

Pre-feasibility Report

PRE FEASIBILITY REPORT

1.0 Executive Summary

The Company Kamdhenu Ispat Limited is a well established group

operating in the business of Steel manufacturing since 1995. The existing

plant capacity configuration is of 8 Tonne Induction Furnace to produce

22,556 TPA of Ingots which is used for producing 48,000 TPA of TMT Bar,

Angle & Channel. As per EIA Notification, it is a Secondary Metallurgical

processing industry. The plant is located in the RIICO Industrial Area near

Bhiwadi in Rajasthan.

The existing plant has the following main facilities:

Land Area of approx- 17,534 m2

Functional 8 Tonne furnace;

Coal Gasifier based Reheating furnace;

Rolling mills for production of long products (TMT Bar, light and

medium section rolled product)

EOT cranes with 40T / 15T capacity;

Weighing Bridge of 50 T capacity;

Fully established pollution equipment (Bag House) attached with 33

m high stack;

Administration block with separate accounts section, production-

quality section, chemical lab, store room, Directors room, conference

room, security room, waiting room, General Manager Office etc.

Tree plantations have been done all around the boundary wall as per the

Rajasthan State Pollution Control Board directions.

The expansion of project falls under Category “A” Projects of activity 3 (a) as

per EIA Notification dated 14th September, 2006, and its subsequent

amendments. Prefeasibility report along with Form 1 and proposed TOR are

mandatory to be submitted for award of TOR as per EIA Notification.

Details of prefeasibility report for proposed project is discussed as follows:

SI. No Parameters Description

1 Identification of Expansion of existing steel plant of Kamdhenu


project

Ispat Limited falls under Category “A” Projects

of activity 3 (a) as per EIA Notification dated 14th

September, 2006 and its subsequent

amendments.

2 Project

Proponent

Mr. Satish Kumar Agarwal

Chairman & Managing Director,

Kamdhenu Ispat Limited

Email:- [email protected]

3 Brief

description of

nature of the

project

The Existing capacity of steel melting with 8

Tonne Induction Furnace for producing 22,556

TPA of Ingot which is used for producing 48,000

TPA of TMT Bar, Angle & Channel. The project

proponent wants to increase the capacity to

produce 96,000 TPA of TMT Bar, Angle &

Channel, by addition of 2 x 13.5 Tonne

Induction Furnace, 1 Continuous Casting

Machine with existing Rolling Mill & dismantling

of existing 8 Tonne Induction Furnace.

4 Salient Features of the Project

4.1 Proposed plant

capacity

1,24,800 TPA (Ingot) to produce 96,000 TPA TMT

Bar, Angle & Channel.

4.2 Total Plot Area 17,534 m2, Expansion of Project within the plant

premises.

4.3 Location Plant site Coordinates of 4 corners

(a) 28°12'3.195"N 76°51'43.050"E

(b) 28°12'0.883"N 76°51'45.733"E

(c) 28°11'56.157"N 76°51'42.432"E

(d) 28°11'56.641"N 76°51'39.067"E

The site and study area falls in the survey of

India Topo sheet H43W16, 53D15, 53D12,

53D11

Elevation -269 m

4.4 Water

requirement

Total water consumption: 24 m3/day

Application Exiting Proposed

additional

Total

(1)Industrial

Process

8.5 4.0 12.5

(2)Domestic 10.0 1.5 11.5

Total 18.5 5.5 24.0

Source- Ground water

mailto:[email protected]


4.5 Source of water This is sourced from Ground. RIICO permission

is already granted.

4.6 Wastewater Zero liquid discharge will be maintained. No

waste water will be discharged outside the plant

premises.

4.7 Man Power Existing Manpower: 165

50 additional manpower will be required after

expansion of the existing units.

4.8 Electricity/

Power

requirement

Existing Power Demand : 4990 KVA

Proposed Demand: 5000 KVA (Application

Applied)

Total : 9990 KVA

Source – Jaipur Vidyut Vitran Nigam Limited

4.10 Alternative site The proposed project is an expansion of the

existing unit. Hence no need of alternate site.

4.11 Land form,

Land use and

land ownership

The existing plant is running in land Area of

17,534 m2. The enhancement in the production

capacity does not require any additional land

area, as the available land area i.e. 17,534 m2 is

sufficient for the proposed expansion.

5.0 Conclusion It is recommended that Kamdhenu Ispat

Limited to undertake the expansion of existing

plant from 22,556 TPA of Ingot which is used for

producing 48,000 TPA of TMT Bar, Angle &

Channel. The project proponent wants to

increase the capacity to produce 96,000 TPA of

TMT Bar, Angle & Channel from 1,24,800 TPA

(Ingot) by addition of 2 numbers of Induction

Furnaces of 13.5 Tonne capacity, Continuous

Casting Machine with existing Rolling Mill &

dismantling of existing 8 Tonne Induction

Furnace. The proposed efficient Air Pollution

Control systems will enhance environment

cleanness. Therefore, minimal impact to the

surrounding environment. The project will bring

about socio-economic improvement as well as

infrastructural development beneficial to the

area.


2.0 Introduction of the Project/ Background Information

2.1 Identification of Project and Project Proponent

Brief Profile of the Company – Kamdhenu Ispat Limited

Kamdhenu Ispat Limited is one of India’s leading infrastructure segment

companies having a golden legacy. Since its inception in 1995, Kamdhenu

Ispat Limited has been growing consistently to be deservedly counted as

country’s one of the most respected and renowned business entities. The

acumen supported with strategic planning and subsequently precise

execution augment the company its distinction and its dominance in the

market.

Kamdhenu Ispat Limited produces KAMDHENU Brand premium quality

Reinforcement Steel Bars (TMT), Structural Steel and Decorative Paints.

The product portfolio of Kamdhenu Ispat Limited also includes Wire Bond,

Plywood and PVC Pipes under the Franchisee Association Model. Moreover,

Kamdhenu Real Estate Projects are also available in Punjab, Jammu and

Nepal. Supported by more than 50 Franchisee units and a Pan-India

network of over 7500 dealers and distributors, the company is successfully

catering to the Indian market and also exploring opportunities in the

international market.

The company’s legacy of pioneering innovations took another leap with the

latest premium product KAMDHENU SS10000 TMT bar featuring double

ribs, double strength and double safety. Made from the latest UK

technology adhering to international quality standards, KAMDHENU

SS10000 TMT bar is the first and only product in India with unmatched

strength and earthquake resistant capacity.

The service to humanities goes beyond company’s role in infrastructural

renovation of the country through application of Kamdhenu products in

core infrastructure segment. Company stands to serve the communities

affected by natural calamities. Company’s social wing, Kamdhenu

Jeevandhara works towards the education of underprivileged children,


promotion of blood donation and rehabilitation of persons with disabilities.

Kamdhenu Jeevandhara is rolling out Green India Campaign which is a

model CSR intervention dedicated to environment protection.

Kamdhenu Ispat Limited has been honoured with some prestigious awards

as follows:

Jubliant Organosys Ltd Award on 16th May, 2007.

Business Sphere Award 2005-06 for entrepreneurship.

Amity Leadership Award 19th Sept. 2009 by “Amity Business School”.

IT- BHU Alumni Award of Excellence by Association of IT-BHU Alumni,

New Delhi dated 23rd May, 2009.

Samaj Ratan Award by Shri. Krishan Janmashtmi Mahotsav Samiti,

Punjabi Bagh in August, 2009.



Bhamashah Award by Confederation of all India traders dated 25th June,

2010.

BMA Award for sponsoring entrepreneur of the year in March, 2013.

Best Stall display Award by Uttar Pradesh Paints Vyapar Mandal in

2013.

Treasuring the trust of consumers, investors & associates and translating

this trust into tangible products of superlative quality, Kamdhenu Ispat

Limited is poised to take yet another big leap. Sure-footedly, the company is

taking glorious steps towards higher goals; steadily.

Mr. Satish Kumar Agarwal – Chairman & Managing Director

Mr. Satish Kumar Agarwal is Gold Medalist in B.E. (Mech.) from Banaras

Hindu University in 1970. He is a catalyst behind the success of Kamdhenu

Ispat Limited. Mr. Satish Kumar Agarwal holds the office of the Chairman &

Managing Director in the organization with rich industrial experience of

more than 40 years. He began his career in 1970 as a partner in Arya


Krishi Yantra Udyog Shala, Muzaffarnagar (U.P.), a parental company

manufacturing Sugar Machinery, Agricultural implements.

The year 1994 proved to be a turning point, when Mr. Satish Kumar

Agarwal, in association with his younger brothers, floated Kamdhenu Ispat

Limited for manufacturing of TMT Bars and CTD Bars at District Bhiwadi

(Rajasthan). Since then, the company has moved forward creating its own

benchmark of quality deliverance and cost effective products.

Mr. Satish Kumar Agarwal has been the prime driving force behind the

company’s seamless progress. It is under his resilient and far sighted

approach that Kamdhenu has assumed a well deserved place among the

largest manufacturers of International quality Steel bars in India and

received an ISO certification from 1996.

Mr. Satish Kumar Agarwal has been no less than a torchbearer in the

regional steel market for Kamdhenu. It is under his able guidance that

Kamdhenu products thrived in every market of India it touched, and

thereby Kamdhenu Group progressed with leaps and bounds in a short

span of time. He is the one to maintain an atmosphere of good corporate

governance through well strategic policies, ethics and work culture. Not

only this, but Mr. Satish Kumar Agarwal also led to the diversification of

the Kamdhenu Group into paint business in 2008 with brand “Colour

Dreamz” now the company under the decorative segmentation among top

players reached at no. 6 in India. Mr. Agarwal created a brand “Kamdhenu”

having turnover of more than Rs.6000 crores through more than 50

licensed manufacturing units and an integrated network of 3500 dealers &

distributors of Steel Division and 4000 Dealers of Paints Division connected

with 30 Sales Depot spread across the country.

Driven with the vision to make Kamdhenu a one-stop-destination for every

infrastructural requirement, the company forayed into numerous

construction materials under dynamic leadership of Mr. Satish Kumar

Agarwal. The product portfolio of Kamdhenu spans from Reinforcement

Steel Bars (TMT/HSD), Structural Steel (Angle, Beam, Channel and Flat),


Plywood, Paints. Kamdhenu always believe in “Best Quality Best Price” to

the ultimate consumer.

Mr. Satish Kumar Agarwal is also devoting attention towards sustainable

wellbeing of the community and started numerous social welfare programs

through it social wing ‘Kamdhenu Jeevandhara’.

Mr. Sunil Kumar Agarwal – Whole Time Director

One among the top management team members, Mr. Sunil Kumar Agarwal

is presently acting as the whole-time Director of Kamdhenu Ispat Limited. A

Bachelors in Engineering (Chemicals) from HBTI Kanpur, Mr. Sunil Kumar

Agarwal commands a rich experience of 25 years in the Steel Industry of

India. With great marketing acumen, he has been the force behind the

strong and efficient marketing network of Kamdhenu that spreads out

across the country. In fact, he is instrumental behind initiating the

Franchisee Association Model, thereby contributing towards the

tremendous growth of the company.

Mr. Sunil Kumar Agarwal has a great hand in identifying the companies

and units involved in the manufacture of TMT/CTD Bars. Also, he is one of

the chief initiators of Kamdhenu's foray into various verticals such as

Structural Steel, Wirebond and Plywood.

Having a keen understanding of the market dynamics Mr. Sunil Kumar

Agarwal has always kept Kamdhenu Ispat Limited a step ahead in the

fiercely competitive infrastructural sector of India.

Mr. Saurabh Agarwal – Whole Time Director

Standing as one of the icons of today’s corporate Indian leadership Mr.

Saurabh Agarwal is currently the whole-time Director of Kamdhenu Ispat

Limited. A Bachelor in Engineering (Mechanical), Mr. Saurabh Agarwal

joined Kamdhenu in 1998 as Technical Executive.

Mr. Saurabh Agarwal is heading the Paint Division of Kamdhenu Ispat

Limited. It is his proficient management that enabled the paint brand of


Kamdhenu to carve its niche among some of the prominent paint player of

India. With his sharp business understanding and confidence, Mr. Saurabh

Agarwal has been the motivating energy in making Kamdhenu Paints a

success story. He holds a deep insight of the global paint industry and in

that context leads the Indians paint market through his innovative ideas

and progressive vision. Research and development precedes every task he

performs, proceeds with creative zing and concludes with an aesthetic

sense.

Mr. Sachin Agarwal – Whole Time Director

The generation next leader of Kamdhenu Ispat Limited, Mr. Sachin Agarwal

is seated as the whole-time Director. He is responsible for the technological

advancement within the company's manufacturing units.

Holding a Degree in Industrial Engineering and a Masters in International

Business Management from U.K., Mr. Sachin Agarwal joined Kamdhenu in

2002 as Technical Executive.

Under his supervision, Kamdhenu Ispat Limited penned a strategic

agreement with Centre de Recherches Metallurgiques (CRM) in Belgium,

leading to the adoption of world class 'Tempcore' technology. Mr. Sachin

Agarwal has been consistently bringing about technological innovation and

upgradations, thus, enabling the manufacturing of cost-effective and

quality products. Responsible for marketing of steel products, Mr. Agarwal

looks after the entire region of Delhi, Haryana and Rajasthan.

In 2013, he was instrumental in developing the Premium Product of TMT

Bar with Double Rib, Double Strength and Double Safety thereby

developing a new product Kamdhenu SS10000 TMT Bar with the support of

Technical Know How from U.K. based Company. Kamdhenu SS10000 TMT

Bar is most suitable for high seismic zone and high rise buildings. The

product has been well accepted in market in short span of one year.


2.2 Brief Description of Nature of the Project

Existing Production Facilities

The Company Kamdhenu Ispat Limited is a well established group

operating in the business of Steel manufacturing since 1995. It is a running

8 tonne furnace producing 22,556 TPA high quality mild steel ingots used

for producing 48,000 TPA of TMT Bar, Angle & Channel used for

construction etc. The factory is located in the state of Rajasthan, District

Alwar, RIICO Bhiwadi.

They have a land area of approx- 17,534 m2, with a boundary wall all

around, functional 8 tonne furnace, EOT cranes with 40t/15t capacity,

weighing bridge of 50 t capacity, fully established pollution equipment with

33 m high chimney with a bag house, administration block with separate

accounts section, production-quality section, chemical lab, store room,

Directors room, conference room, security room, waiting room, General

Managers office, etc. Also, have done tree plantations all around the

boundary wall as per the state pollution board norms.

2.3 Need for the project and its importance to the country and or

region

Steel is crucial to the development of any modern economy and is

considered to be one of the backbones of human civilization. The level of

per capita consumption of steel is treated as an important index of the level

of socio-economic development in a country.

From only three steel plants, a few electric arc furnace-based plants and a

mere one million tonne (MT) capacity status at the time of Independence,

India is now the fourth largest crude steel producer in the world and the

largest producer of sponge iron.

The Indian steel industry accounts for over 7% of the world’s total steel

production. The domestic crude steel production grew at a compounded

annual growth rate of 8.6% during 2004–2005 to 2008–2009. The National


Steel Policy of the Government of India has a target for taking steel

production up to 110 MT by 2019–2020. While 2007 was an exciting period

in the history of Indian steel industry, corresponding to 7% growth over

2006; 2008 witnessed an unprecedented global economic meltdown with

only a marginal growth of 3.7%. Consumption declined, in fact, from July

2008 onwards. However, 2009 was a year of great resilience and recovery for

the Indian steel industry. For April–December 2009, the provisional data

released by Joint Plant Committee indicates a 7.8% rise in consumption of

total finished steel. World Steel Association forecasts India’s Apparent Steel

Usage (ASU) to increase at 13.9% during 2009–2010, over 2008–2009, to

reach 63 MT compared to the forecast of 10.7% for the world and 6.7% for

China for the same period. Similar figure for 2010–2011 over 2009–2010

stand at 13.7% for India, 2.8% for China and 5.3% for World. The

prospective increase in the ASU figures are substantiated through a scrutiny

of the consumption patterns in India. However, in consideration of the

extensive infrastructure development planned by the government in both

rural and urban areas, these consumption figures have a strong scope to

increase. Accordingly, a number of major Indian and Global steel players are

into a massive capacity expansion mode in India, either through Brownfield

or Greenfield route.

Presently, steel contributes to nearly two per cent of the gross domestic

product (GDP) and employs over 500,000 people. The total market value of

the Indian steel sector stood at US$ 57.8 billion in 2011 and is expected to

touch US$ 95.3 billion by 2016. India's per capita steel consumption stood

at 57.8 kilograms in 2013, according to a World Steel Association report

and is expected to rise with increased industrialization throughout the

country. While the per capita demand in India, at around 58 kg, is nowhere

near to the world average of around 150 kg, or, about 400 kg for developed

countries; the rural India, at around 5 kg per person, lags even farther

behind in comparison to urban India. However, in consideration of the

extensive infrastructure development planned by the government in both

rural and urban areas, these consumption figures have a strong scope to


increase. Accordingly, a number of major Indian and Global steel players

are into a massive capacity expansion mode in India, either through

Brownfield or Greenfield route.

2.4 Demand-Supply Gap

On a conservative estimate, the steel demand in India is expected to touch

around 90 MTPA by 2015 and around 150 MTPA by 2020. Steel supply is,

however, expected to reach only around 88 MTPA by 2015 and around 145

MTPA by 2020.While the demand for steel will continue to grow in

traditional sectors, specialized steel is also increasingly being employed in

various hi-tech engineering industries. Globally, a relation can be observed

between steel consumption and the GDP growth rate. Overall, India, being

in a high growth phase with huge planned infrastructure development, is

bound to witness sustained growth in the steel requirement in the years to

come.

Market size

India is slated to become the second-largest steel producer in the world by

2015. Steel production in the country has increased at a compound annual

growth rate (CAGR) of 6.9 per cent over 2008-2012.

India's real consumption of total finished steel grew by 0.6 per cent year-

on-year in April-March 2013-14 to 73.93 MT, according to the Joint Plant

Committee (JPC), Ministry of Steel.

Increasing demand by sectors such as infrastructure, real estate and

automobiles at home and abroad has put India on the world map. The

construction sector accounts for around 60 per cent of the country's total

steel demand while the automobile industry accounts for 15 per cent.

Government Initiatives

Ministry of Steel, Government of India, is considering setting up a strong

research and development (R&D) mission/centre, virtual or otherwise, to


step up innovative research and technology development in the country's

steel industry.

The Centre's Steel Development Fund (SDF) and Plan Scheme presently

provide financial assistance for R&D in the sector. Under the SDF scheme,

82 R&D projects have been approved with total project cost of Rs 677 crore

(US$ 112.61 million) where in SDF assistance is Rs 370 crore (US$ 61.54

million). Under the Plan Scheme, eight projects have been approved with a

total cost of Rs 123.27 crore (US$ 20.51 million) where in government

assistance is Rs 87.28 crore (US$ 14.51 million).

In order to increase industrial activity, the Government of India, through

the Ministry of Steel, has signed Memorandums of Understanding (MoUs)

with all the major steel producing Public Sector Undertaking (PSU)

companies such as SAIL and Rashtriya Ispat Nigam Ltd (RINL). These will

help to direct the companies to achieve targets and benefit the sector as a

whole.

Road Ahead

The liberalization of the industrial policy and other initiatives taken by the

government has spurred the growth of the private sector in the steel

industry. While the existing units are being modernized or expanded, a

large number of new steel plants have also come up in different parts of the

country based on cost-effective and state of-the-art technologies. In the last

few years, the rapid and stable growth of the demand side has also

prompted domestic entrepreneurs to set up fresh greenfield projects in

different states of India.

With the increase in global population, there is a greater need for steel to

build public-transport infrastructure. Emerging economies will continue to

drive demand as these countries require a significant amount of steel for

urbanization and industrialization purposes. India's steel sector is

anticipated to witness investment of about Rs 2 trillion (US$ 33.26 billion)

in the coming years, as per Tata Steel.


2.5 Employment Generation (Direct and Indirect) due to the Project

Existing Manpower = 165

Proposed Manpower = 50

Total Manpower= 215

3.0 Project Description

3.1 Type of Project

The proposed project is a secondary Steel Plant to produce 96,000 TPA of

TMT Bar, Angle & Channel from 1,24,800 TPA (Ingot) by addition of 2 x

13.5 Tonne Induction Furnace, 1 Continuous Casting Machine with

existing Rolling Mill, Coal Gasifier with Reheating Furnace & dismantling of

existing 8 Tonne Induction Furnace.

This project falls under Category “A” Projects of activity 3 (a) as per EIA

Notification dated 14th September, 2006 and its subsequent amendments.

The interstate boundary of Rajasthan & Haryana (within 5 km radius i.e.

Haryana, 1.9 km in NE direction). There is no interlinked / interdependent

project.

3.2 Location

The project site is located at Plot No. A-1114 and A-1112 at RIICO

Industrial Area, Phase-3, Bhiwadi, Rajasthan. The project site is located at

the distance of about 1.23 km from NH71B- N direction, 3.60 km from

SH25- W direction, 6.50 km from NH8- NW direction, nearest railway

station is Patandi Road 19.5 km in NNW direction & Rewari Junction is

24.5 km in W direction.

Nearest Air Port – IGI New Delhi at 50 Km NNW direction.

The nearest river is Sahibi, which is 10.80 km in West direction, Indori nala

is 5.20 km in East direction from the project site. There are no Wildlife


sanctuaries & National Park within 15 km radius. Gondhan Protected forest

(PF)- 1.9 km in South direction, Banvan PF- 4.2 km in South direction,

Khori Kalan PF- 8.70 km in South direction, Chanpanki PF- 6.75 km in SE

direction. No Reserved forest falls within the 10 km.

Project boundary coordinates of 4 corners are as follow:

Plant site Coordinates of 4 corners:-

(a) 28°12'3.195"N 76°51'43.050"E

(b) 28°12'0.883"N 76°51'45.733"E

(c) 28°11'56.157"N 76°51'42.432"E

(d) 28°11'56.641"N 76°51'39.067"E

The site and study area falls in the survey of India Topo sheet H43W16,

53D15, 53D12 and 53D11.


Fig. 1: Location of Project Site

Project Site


Fig. 2: Buffer map of the study Area (10 km radius)


Fig. 3: Buffer map of the study Area (5 km radius)


3.3 Details of Alternate Sites

This is the expansion of existing project; therefore no alternate site is

selected.

3.4 Size and Magnitude of Operation

The proposed project through expansion of existing plant from 22,556 TPA

(Ingot) which is used for producing 48,000 TPA of TMT Bar, Angle &

Channel to produce 96,000 TPA of TMT Bar, Angle & Channel from

1,24,800 TPA (Ingot) by addition of 2 x 13.5 Tonne Induction Furnace, 1

Continuous Casting Machine with existing Rolling Mill, Coal Gasifier with

Reheating Furnace & dismantling of existing 8 Tonne Induction Furnace.

3.5 Project Description with Process Details

The site layout plan is enclosed as Annexure. The description of

manufacturing process is given below:-

Principle of melting in Induction Furnace (IF)

The principle of melting in induction furnace is that the electrical coil

surrounding the cylindrical crucible acts as primary and the metallic

charge as secondary. When an electrical current is passed through the

primary coils, the electromagnetic field cause induced current to flow

through the metallic charge, making it melt. As soon as pool of liquid metal

from the scrap charged in the furnace has been formed a pronounced

stirring action takes place in the molten metal, which helps to accelerate

further melting of charge. The melting is rapid comparing to other

processes with only a slight loss of easily oxidisable elements. In fact there

is hardly any loss of alloying elements.

Induction Furnace (IF) construction


The shape of further is like a vertical cylindrical crucible made of refractory

ramming mass. It is fitted in a steel shell suitably insulated. Between the

shell and refractory crucible winding of copper tubing is placed. Fire bricks

are placed at the bottom of the shell, and the space between steel former

and the coil is rammed with fine grains of acidic or basic refractory

material. The steel former melts during the melting of charge in the

crucible.

Induction furnace (IF) operation

When the electrical current is switched on, the eddy currents developed

between primary copper coil and heavier secondary current in the metallic

charge melt the charge to the desired temperature. The entire process of

melting is taking place silently without any noise pollution.

No serious refining for adjustment of chemistry or removing the non-

metallic inclusion is carried out. Normally the steel melting scrap of good

quality is used. In an empty furnace, first 10 to 15% scrap is charged on

the melting of which continuous charging of sponge iron at 100 to 130

kg/min rate is commenced. Sponge iron and scrap charging sequence is

decided by the Induction Furnace. Towards end of the heat, sponge iron

charging is discontinued and heat completed by addition of steel scrap.

However, to get the desired chemistry of bath, some additions are made. In

case carbon in bath is high, low carbon sponge iron is added to reduce it. It

will also dilute sulphur and phosphorous contents. In the sponge iron,

phosphorus still exists in the oxide form even after reduction. In this way, a

distribution of phosphorus between the slag and metal phase

corresponding to the equilibrium is attained. This is one of the essential

advantages of sponge iron as compared to scrap. A typical coreless

Induction Furnace is shown below.


Electro-dynamic Circulation Magnetic Field and Electro-dynamic

of Metal in the Crucible of an Forces acting in the Crucible

Induction Furnace of an Induction Furnace

This project is heading for a expansion plan of the plant increasing the

capacity of 22,556 TPA (Ingot) which is used for producing 48,000 TPA of

TMT Bar, Angle & Channel to produce 96,000 TPA of TMT Bar, Angle &

Channel, by addition of 2 x 13.5 Tonne Induction Furnace, 1 Continuous

Casting Machine with existing Rolling Mill, Coal Gasifier with Reheating

Furnace & dismantling of existing 8 Tonne Induction Furnace.

This project is based on the new concept of continuous casting machine

with hot charging of molten metal at 1050-1100 degree celcious directly to

the rolling mill without reheating by the reheating furnace thus avoiding

any coal/fuel operated reheating thus resulting into pollution less

production of the end product. Therefore, provision of coal gas based

reheating furnace will be dismantled. This project is not only energy

efficient but also environment friendly as no coal pulveriser, coal gasifiers

etc will be used.

A typical CCM is shown below.


Fig-4: Material Flow Diagram


Fume Extraction System for IF (APCD i.e. Air Pollution Control Device)

The proposed fume extraction will consist of primary as well secondary

emission through a single swiveling side hood with high suction velocity for

each crucible. This will replace conventional furnace top swiveling hood for

primary suction during melting and roof mounted canopy hood for

secondary suction during charging and tapping.

Existing

(8 T Furnace)

Primary & Secondary side suction emission

Bagfilter, with stack height- 33 m

Proposed

(2 x 13.5 T Induction

Furnace)

Primary & Secondary side suction emission

Bagfilters, with stack height-- 33 m

Particulate Matter concentration in discharged

gases will remain <50 mg/Nm3

Rolling Mill 16 to 18 T/hr

CCM Steam extraction system

Material handling area Dust suppression system

3.6 Raw Material

The raw material consumption and their mode of transportation are given

below in Table-1

Table-1 List of Raw Material

Total Raw material For expansion (TPA)

Scrap 60,000

Sponge Iron 72,000

Addition of Ferro manganese, Ferro silicon and aluminum will be 0.3%-

0.5%


Table-2: List of Finished Product with their mode of transportation

S.No. Description of Finished

Product

Annual Qty.

(Tonne)

Mode of

transport

1. TMT Bar, Angle & Channel 96,000 Trucks

3.7 Resource optimization / Recycling and Reuse

Zero discharge is implemented through water recycling and re-use of

water.

Rain water harvesting will be implemented to conserve rainwater.

The magnetic slag (recovered metals) will be reused in Furnace and

non magnetic slag (slag without metals) will be used in construction,

roads, filling low lying area and as railway ballast and no slag is

disposed outside the industrial area.

Scale from CCM will be reused/sold after collection from scale pit.

High efficiency cooling tower with at least 4 cycles of concentration

(COC) will reduce make up water needs.

3.8 Availability of water its source, energy / power requirement and

source

Water requirement in the existing plant

a) Industrial use

b) Drinking, Sanitation and Horticulture purpose

Table-3: Water Requirement

Application Requirement m3/day

Existing

Additional Total


Industrial water

system

8.5 4.0 12.5

Drinking water

system

10.0 1.5 11.5

Total 18.5 5.5 24.0

Source Ground Water from RIICO

3.9 Quantity of wastes to be generated (liquid and solid) and scheme

for their Management / disposal

Quantity of solid waste generated and their Management / disposal

elaborated in Table 6: Quantity of Solid Waste and their mode of disposal

(for Existing & Proposed)

No wastewater will be discharged outside the plant boundary. The cooling

tower blow down water will be utilized in dust suppression, cooling of slag,

developing green belt and fire fighting application.

4.0 Site Analysis

4.1 Connectivity

The project site is well connected with road & rail network 1.23 km from

NH71B- in N direction, 3.60 km from SH25- in W direction, 6.50 km from

NH8- in NW direction, nearest railway station is Patandi Road 19.5 km in

NNW direction & Rewari Junction is 24.5 km in W direction.

Table-6: Connectivity of the proposed site.

Nearest city Bhiwadi 3 km, W direction

Nearest railway station Patandi Road 19.5 km in NNW direction

Approach Road NH71B is 1.23 km, N direction

Nearest river body Sahibi River- 10.8 km, West

Indori Nala- 5.2 Km East


Sare Khurd Canal- 6.0 km SE

MSL 269 m

4.2 Land Form, Land use and Land ownership

Details

Land Use - Total Acquired Area – 17,534 m2

Land Ownership – M/s Kamdhenu Ispat Ltd.


Fig-5: Land use pattern of the study area


4.3 Geographical Location

The whole of Alwar District is also part of the National Capital Region

(NCR). This plan was formulated in 1985 to check the unprecedented

growth of Delhi and to plan and promote a balanced and harmonius

development around the national capital. As per the plan, Alwar and

Bhiwadi have been identified as regional centers and are to be developed for

siting of industries and other economic activities on priority basis.

The District is situated in north-east Rajasthan between 27004’ N and

28004’ N latitudes and 76007’ E and 77013’ E longitudes. It covers an area

of 8,380 square kilometres. The District occupies about 2.45% of the total

area of the State. The District is the 17th largest by area in the State. It is

bounded on the north and north-east by Gurgaon District of Haryana and

Bharatpur District respectively. On the north-west, Alwar is bounded by

Rewari District of Haryana. Jaipur District bounds Alwar on the south-west

and south. Sawai Madhopur District surrounds Alwar on the south.

4.4 Existing Land Use pattern

The proposed Expansion of Project within the plant premises.

4.5 Existing Infrastructure

The site / factory is located in RIICO Industrial area and adjacent to town

and villages with all required infrastructures like human settlement,

schools, hospitals, health care centers, public transport etc are already

available.

4.6 Soil Classification

The soils of the District can broadly be divided in to three classes, viz.,

Older Alluvial Soils, Red Grey-valley Soils and Red Sandy Soils. Older

Alluvial Soils are found in Tijara tehsil, large part of Lachhmangarh tehsil

and some parts of Ramgarh, Kherli, Behror, Rajgarh, Itarana and

Kishangarh tehsils. Red Grey-valley Soils are found in large part of Alwar

tehsil and Thanagazi, small patches in Kishangarh and Ramgarh tehsils,


north-east part of Rajgarj and north-west part of Lachhmangarh tehsils.

Red Sandy Soils are found in large part of Bansur tehsil, mid part of

Thangazi and some parts of Rajgarh.

4.7 Climate data from secondary sources

The climate of the District is semi-arid and very hot in summer and

extremely cold in winter. The monsoon season is of very short duration. The

cold season starts by the middle of November and continues up to the

beginning of March. The summer season follows thereafter and extends up

to the end of the June. The south-west monsoon continues from July to

mid-September. The period from mid-September to mid-November forms

the postmonsoon season. The rainfall during the south-west monsoons

constitutes about 80 % of the annual rainfall. 577.7 mm is the annual

average rainfall.

4.8 Social Infrastructure available

Schools, colleges, hospitals & healthcare centers, shopping complex &

bazaars, cinema halls, community centers etc. are all available nearby area.

5.0 Planning Brief

5.1 Planning Concept (type of industries, facilities, transportation etc),

Town and Country Planning / Development authority classification.

Being an existing plant the following points are not applicable.

5.2 Population Projection

According to Census 2011, Alwar had population of 3,674,179 of which

male and female were 1,939,026 and 1,735,153 respectively. In 2001

census, Alwar had a population of 2,992,592 of which males were

1,586,752 and remaining 1,405,840 were females. There was change of

22.78 percent in the population compared to population as per 2001. In the


previous census of India 2001, Alwar District recorded increase of 27.22

percent to its population compared to 1991.

The initial provisional data released by census India 2011, shows that

density of Alwar district for 2011 is 438 people per sq. km. In 2001, Alwar

district density was at 357 people per sq. km. Alwar district administers

8,380 square kilometers of areas.

Average literacy rate of Alwar in 2011 were 70.72 compared to 61.74 of

2001. If things are looked out at gender wise, male and female literacy were

83.75 and 56.25 respectively. For 2001 census, same figures stood at 78.08

and 43.30 in Alwar District. Total literate in Alwar District were 2,182,476

of which male and female were 1,359,829 and 822,647 respectively. In

2001, Alwar District had 1,488,281 in its district.

With regards to Sex Ratio in Alwar, it stood at 895 per 1000 male compared

to 2001 census figure of 886. The average national sex ratio in India is 940

as per latest reports of Census 2011 Directorate. In 2011 census, child sex

ratio is 865 girls per 1000 boys compared to figure of 887 girls per 1000

boys of 2001 census data.

In census enumeration, data regarding child under 0-6 age were also

collected for all districts including Alwar. There were total 587,959 children

under age of 0-6 against 581,916 of 2001 census. Of total 587,959 male

and female were 315,270 and 272,689 respectively. Child Sex Ratio as per

census 2011 was 865 compared to 887 of census 2001. In 2011, Children

under 0-6 formed 16.00 percent of Alwar District compared to 19.45

percent of 2001. There was net change of -3.45 percent in this compared to

previous census of India.

5.3 Land use planning (breakup along with green belt etc).

Green Belt area will be developed as per the CPCB guidelines.


Particulars Area (sq m) Percentage (%)

Plant Area 9421.49 54

Road/ Corridors 1753.40 10

Plantation 1753.40 10

Open Area 4605.71 26

Total 17534.00 100

5.4 Assessment of Infrastructure Demand (Physical and Social).

All facilities / amenities like medical, educational, housing, transportation,

communication, shopping etc are available in abundance. The employees

make their own arrangements for transport, lodging, boarding etc. Further

detail socio economic study will be done in EIA/EMP report.

5.5 Amenities / Facilities.

165 people are employed at various positions in the existing units. After

expansion of the existing units 50 additional manpower will be required.

6.0 Proposed Infrastructure-

Infrastructure will be developed as per the requirement for the expansion of

steel plant within the plant premises.

6.1 Industrial Area (Processing Area)

Adequate infrastructural facilities will be developed for the proposed

expansion. Expansion units will make use of additional land, storage of raw

material and handling, additional water & power demand, and use of road

and rail network for transportation of raw materials and finished products.


6.2 Residential Area (Non-Processing Area).

The employees make their own arrangements for their housing & allied

amenities in the nearby town and villages. There is no need for any

additional facilities.

6.3 Green Belt

Plants of the various species will be developed as per potential of pollution

in the plant and peripheral areas. Green Belt would be developed according

to CPCB guidelines.

6.4 Social Infrastructure

Schools, colleges, hospitals & healthcare centers, shopping malls &

bazaars, cinema halls, community centers etc. are all available nearby area.

6.5 Connectivity (Traffic and Transportation Road / Rail / Metro /

Water ways etc)

The project site is well connected with road & rail network, 1.23 km from

NH71B- N direction and 19.5 km from Patandi Road railway station in NNW

direction.

6.6 Drinking Water Management (Source & Supply of water)

Ground water from RIICO will be used for drinking and industrial use, after

necessary treatment if required.

6.6.1 Environmental Pollution Control

General


A Steel plant is a potential source of environmental pollution. The

pollutants in the form of solids, liquids, gases and noise are generated from

various units and if let out as such, will have hazardous effects on the

environment. Pollution of environment not only adversely affects the flora

and fauna but also shortens the life of plant and equipment. This vital

aspect, therefore, has been taken into account while selecting the plant

and equipment.

The potential source and extent of pollution depends upon the process

route adopted in a plant. In the proposed plant such process units are

Induction Furnace (IF), Continuous Casting Machine (CCM) plant, Rolling

Mill (RM) etc and constitute the potential sources of environmental

pollution. Adequate measures have, therefore, been proposed to render the

pollutants harmless as per the stipulations of statutory norms.

Before implementation of the plant, an Environmental Impact Assessment

(EIA) study will be made. The study will cover the monitoring of existing

environment at site, assessment of pollution likely to be caused by the

proposed plant and its impact on physical environment, socio-economic

environment, flora-fauna, demography, land use, etc.

Based on the findings given in the EIA study report a detailed

Environmental Management Plan (EMP) will be prepared for obtaining

approval by the various Pollution Control Authorities.

6.6.2 Source and type of Pollution

The different sources and types of pollutants are given in below Table-7

Table-7: Sources and types of pollutants

Sl.No. Units Operation Emission

released/

Waste

generated

Types of

Pollution

1 Raw Material

Handling

Stock piling,

crushing, screening,

conveyor transfer &

- Fugitive

Dust

emission

- Air

- Land


charging, etc

Temperature:

Ambient

- Noise

- - Noise

2 Induction

Furnace

Charging, melting,

de carb. de-phos,

etc

- CO,NO2,SO2

- Dust

- Slag

- Air

- Air

/land

-Land

3 CCM Plant Casting of liquid

steel into solid

billets,

- Steam

- Scale,

grease

& lubricant

in hot

water

- Cooling

water

(closed

circuit)

- Tundish

slag

- Air /

thermal

- Water

/

land

- Thermal

4 Rolling Mills Rolling of Billets in

to Bar and

Structural

*Scale, grease &

lubricant

Water

In the existing plant, primary and secondary fumes generated in the

Induction Furnace along with dust generated during charging of materials

into the furnace are captured through a side suction swiveling hood.

For the proposed plant, similar suction system will be used for primary

and secondary suction of 13.5 Tonne Induction Furnace.


The gases from the Induction Furnace primary and secondary shall be

passing through Spark Arrestor to catch any burning particle. Pulse Jet

Bag Filter is provided for dust cleaning purpose. Due to ingress of ambient

air into suction hoods of Induction furnace temperature of the gas before

inlet to Bag filter shall be around 140deg C. The bag house shall be

efficient for filtration of dust by high pressure compressed air pulses. Dust

content in the exhaust air shall be limited to 50mg/Nm3 or less as per the

CREP recommendations of CPCB.

Dust collected in the Spark Arrestor & Bag House shall be transported to

an overhead storage bin through screw conveyors and bucket elevator. The

discharge end of dust storage bins shall be provided with air lock valves. A

pug mill shall be provided for converting the dust to pellets/balls for

further handling & disposal.

The clean & cool gas from the bag house shall be exhausted through a

chimney by an Induced draft (ID) fan. The height of the self supporting

chimney shall be 33 m and will be provided with lightning arrestor,

aviation lightings, and stair ways with provision of measuring dust level in

the exhaust gas.

Thermal Pollution

As stated earlier, considerable thermal pollution takes place due to

handling of high temperature materials, liquid steel, slag, hot gasses, etc

including generation of heat due to friction in a machine and burning of

fuel for heating of ladles, tundish, etc. Temperature rise is also expected in

a closed premise due to accumulation of heat viz. at the EOT crane level,

etc.

Heat within covered premises could be controlled by providing suitable

ventilation and air conditioning system. Personal exposure to hot materials

such as liquid steel, liquid slag should be reduced by wearing heat proof

apron, hand gloves, leg guards, goggles, etc.

6.7 Sewerage System.


Existing sewage directly discharges to septic tank and soak pit. After

expansion with increase in the working manpower in plant, the sewage will

directly discharge to additional septic tank and soak pit.

6.8 Industrial Waste Management.

The industrial waste generated will be categorized into hazardous waste

and non- hazardous waste. With the potential of environment impact to the

surroundings, the hazardous waste will be treated and disposed as per the

(Management, Handling & Transboundary Movement) Rules, 2008. It is

further elaborated in Table 6: Quantity of Solid Waste and their mode of

disposal (for Existing & Proposed)

6.9 Solid Waste Management

The principal solid waste produced from proposed steel plant is slag, mill

scale, scrap and dust.

Slag generated from induction furnace will be reused for construction

purposes, filling of low lying lands, etc. after temporary storage, cooling,

crushing and metal removal. All other dust generated in the plant will be

passed through pug mill to make bricks. Any extra dust will be dumped

for disposal Steel scraps generated in steel melting shop, continuous

casting plant will be recycled for melting.

Mill scale will be reused/sold to Contractors. Debris and muck generated in

the plant will be collected and dumped in the dumping area for periodic

disposal.

Extensive pollution control measures have been envisaged for minimizing

the dust pollution of the plant. No solid waste from the plant will be

dumped anywhere outside the plant. This point is further elaborated in

Table-8


Table 6: Quantity of Solid Waste and their mode of disposal (for Existing & Proposed)

S.No. Item

Existing quantity

of solid waste

Generated (TPA)

Total quantity of

solid waste after

expansion

(TPA)

Method of

Disposal Possible Use

1. Furnace

Slag 2,000 6,200

Crushed to recover ≈

6% steel and

reused/sold to

Contractor

Road making, filling

low lying areas and

as railway ballast

2. Refractory

Bricks 125 400 Sold to Contractor

Refractory

Manufacturing

Plants

3. Mill Scale 100 350 Reused/Sold to

Contractors

Sinter Making

/export

4. Steel

Scrap 1,000 4,500

Mixed with raw

material for Induction

Furnaces

Reuse in the plant.

5.

Dust from

Air

Pollution

Control

System

10 50 Dry dust is passed

through Pug mill for

block making.

Excess dust is

packed in HDPE

bags and stored in

godown after

weighment and the

same is transported

to SPCB approved

agency.


6.10 Power Requirement & Supply / Source.

Existing sanction : 4,990 kVA

Additional power requirement : 5,000 kVA

(application applied)

Total requirement after expansion : 9,990 kVA

Source of Supply : Jaipur Vidyut Vitran Nigam Limited

7.0 Rehabilitation and Resettlement (R & R) Plan

No, Rehabilitation and Resettlement (R & R) Plan involved.

8.0 Project Schedule & Cost Estimates

Project Implementation Schedule

i) Zero date for the project program has been considered as the date of

placement of order for main plant equipment.

ii) It has been assumed that the clearances by different agencies of the

government would be obtained prior to placement of order for main plant.

Based on implementation of this project on multi package basis and

expected deliveries of main plant and equipment, 10-12 months period from

zero date to commercial operation date has been considered.

Cost Estimates

The total cost of Project is estimated at Rs. 18.80 Crores.


Table-7: Environment Protection Cost Estimates

Existing Proposed additional

Environmental

Protection

Capital

Cost

(Lakh)

Annual

Operating

Cost (Lakh)

Capital

Cost (Lakh)

Annual

Operating

Cost (Lakh)

Air pollution control 22.0 2.2 22.0 2.2

Water pollution control 6.0 1.0 2.0 0.5

Solid waste management 1.0 0.5 2.0 0.5

Environmental Monitoring - 0.5 - 2.0

Green belt 1.0 0.5 1.0 0.5

Total 30.0 4.7 27.0 5.7

Cost of Pollution Control System

Capital Cost of pollution control system will be approx. 27.0 Lakhs of

rupees. Annual operating cost of pollution control system will be approx.

5.7 Lakhs of rupees.

9.0 Analysis of proposal and final recommendation

It is recommended that Kamdhenu Ispat Ltd. to undertake the expansion

of existing plant from 22,556 TPA (Ingot) which is used for producing

48,000 TPA of TMT Bar, Angle & Channel to produce 96,000 TPA of TMT

Bar, Angle & Channel, by addition of 2 x 13.5 Tonne Induction Furnace, 1

Continuous Casting Machine with existing Rolling Mill, Coal Gasifier with

Reheating Furnace & dismantling of existing 8 Tonne Induction Furnace.

It offers to substantially improve in the steel production with an investment

of approx. Rs. 18.80 crores. The proposed efficient air, water and solid

waste Pollution Control systems will enhance environment cleanness,

therefore minimal impact to the surrounding environment.

The proposed project will bring economical benefits to the state and to the

local people by way of direct and secondary employment opportunities. The


steel production is the backbone of all construction and infrastructure

projects as the raw material for construction is available only from steel

plants. Thus the project will bring about socio-economic improvement as

well as beneficial to the area.

PRE FEASIBILITY REPORT 1.0 Executive...

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