Presently we are operating two numbers of Induction Furnace unit with installed

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1 To, Dated: The Secretary C.G. State Level Expert Appraisal Committee, Commercial Complex, Housing Board Colony, Kabir Nagar, Raipur (C.G.) Subject : Application for Environmental Clearance for proposed expansion of Induction Furnace unit by installing Two Numbers of Induction furnaces with CCM unit having capacity of MT at Plot No.: 8 and 11, Borai Industrial Growth Centre, Rasmada, District: Durg (C.G.) Respected Sir, Presently we are operating two numbers of Induction Furnace unit with installed capacity of MT at Plot no. 8 and 11, Borai Industrial Growth Centre, Rasmada, Tehsil and District: Durg (C.G). We hereby proposed to expand our existing operational facility by installing two more induction furnaces with CCM within existing premises for production of Ingots/ Billets/ Blooms. After proposed installation the plant configuration will be as follows: Details Steel Ingot, Billets / Blooms Production Capacity Existing Proposed Total MT MT Tons/ Year Regarding this we are seeking Environmental Clearance under provision of EIA Notification 2006 from Chhattisgarh State Level Environment Appraisal Committee. For this we herewith submit the duly filled and singed FORM I along with the Prefeasibility Report as per the requirement EIA Notification 2006 for your kind perusal and further necessary action please. We request your goodselves to kindly grant us Environment Clearance for our proposed expansion at the earliest. Thanking you, Yours faithfully For J.D. Ispat Private Limited, Director

2 Pre-feasibility Report For Expansion of Induction Furnace Plant (Capacity From TPA to TPA) Promoter : Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.) jdispat2004@yahoo.co.in Ph.No

3 Contents 1.0 Executive Summary: Introduction of the project/ Background information: Identification of project and project proponent Brief description of nature of the project Need for the project and its importance to the country and or region Employment Generation (Direct and Indirect) due to the project Project Description Type of project including interlinked and interdependent projects: TYPE OF PROJECT: INTERLINKED PROJECT: General Location: Details of alternate sites considered: Size or magnitude of operation MANUFACTURING PROCESS: PROCESS FLOW DIAGRAM: Raw material requirement, Transport etc.: RAW MATERIAL REQUIREMENT AND ITS SOURCES: MODE OF TRANSPORT FOR RAW MATERIALS AND FINISHED PRODUCTS: MARKET OF FINAL PRODUCTS: Resource optimization/ recycling and reuse envisaged in the project: Availability of water its source, Energy/ power requirement and source: WATER REQUIREMENT AND ITS SOURCES: SOURCES OF ENERGY/ POWER AND ITS SOURCES: Generation and disposal of Wastes [Waste Water and Solid Wastes]: 10 i

4 3.9.1 WASTE WATER GENERATION: SOLID WASTE GENERATION AND ITS DISPOSAL: Site Analysis Connectivity Land Form, Land use and Land ownership LAND FORM: LAND USE OF THE PROJECT SITE: Topography Existing Infrastructure Soil classification Climatic data from secondary sources Planning Brief Planning Concept: Population Projection: Land use planning: Amenities/Facilities Proposed Infrastructure Industrial Area (Processing Area) Residential Area (Non Processing Area) Green Belt Social Infrastructure Connectivity: Drinking Water Management: Sewerage System Industrial Waste Management Solid Waste Management. 15 ii

5 6.10 Power requirement & its source Rehabilitation and Resettlement Scheme: Project Schedule & Cost Estimates: Likely date of start of construction: Estimated project cost: Means of Finance: Analysis of proposal (Final Recommendations) Financial and social benefits: Socio-Economic Developmental Activities 18 iii

6 1.0 Executive Summary: 1.1 [here in after referred as JDIPL] is incorporated with Registrar of Companies, Mumbai as Limited Company, intends to expand its activities by installing few more Induction Furnaces. The main promoters of the company are Mr. Shiv Kumar Goel and Mrs. Anjna Goel. The promoters are in various businesses and having good reputation in the market, which was gained with good business experience and leading industrial manufacturers in Central India. Seeking the huge gap in demand and supply of Steel; JDIPL propose to expand its Operational facilities within existing premises. 1.2 It is proposed to carryout expansion activities within existing plant premises i.e. Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.) and no additional land is required for proposed installation. 1.3 It is envisages that total water requirement after proposed expansion is about 120 KL / day required for cooling and domestic purpose. 1.4 The project cost estimated for installation of the proposed Units works out to ` Crores. This is inclusive of equipment cost as erected including Civil and structural works, taxes & duties and contingencies. As mentioned above the promoters & key personal are experienced, energetic and resourceful men with good links. The promoters are also financially stable & will be able to execute the project successfully & in specified time & run it profitability & smoothly in future too. ***** 1

7 2.0 Introduction of the project/ Background information: 2.1 Identification of project and project proponent. As mentioned earlier that promoters are already operating Steel Melting Shop comprising of Two Number of Induction Furnaces, intends to expand their operational facilities by installing two more induction furnaces for production of Steel Ingots/ Billets/ Blooms. 2.2 Brief description of nature of the project. The proposal is of Steel Melting Shop by installing Two Induction Furnaces within existing plant premises i.e. at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.) and no additional land is required for proposed installation. Post expansion plant scenario will be as follows: Units Installed Capacity Existing Proposed Total Manufacturing of Steel Ingots/ Billet/ Blooms TPA TPA TPA 2.3 Need for the project and its importance to the country and or region. Indian steel industry is undergoing a period of restructuring, improving its ranking among global steel producers from the 9 th place to the 7 th place. In the last 5 years, the production and consumption of steel has grown at exceeding rates of 9% per annum. The pace of growth has further accelerated in the current year to over 10%. As per the latest CRISIL report a stable trend in the domestic steel industry s operating margin in as compared with that of , is predicted. The firm steel prices will keep the rise in input cost under check. The global demandcapacity ratio, which figured at around 89% in 2012, is expected to remain the same during 2013, which will maintain the similar price range as registered in the preceding year. Domestic prices are expected to follow the international prices trend. The CRISIL report also predicts buoyancy in the domestic steel demand. With healthy activity in pipes and tubes, automobiles and the construction segment, the 2

8 demand for steel products is all set to scale. The report predicts a double-digit growth in demand for flat products with 11% to 21 Million Tons during , where as demand for long products is expected to grow by 7.6% to 19 Million Tons. The 11 th Five Year Plan projects a 9% average annual growth in our GDP. Higher expectations to see a massive increase in investment in infrastructure is probable. Consequently, massive growth in demand for steel in the next few decades is also credible perhaps to levels never visualized before. In view of the above M/s has proposed to expand its unit within existing premises and no additional land is required for proposed installation. 2.4 Employment Generation (Direct and Indirect) due to the project. The local areas will be benefited by way of generation of employment opportunities, increased demand for local products and services. There will be an overall improvement in the income level of the local people. The expansion project creates employment to about 40 persons once the plant comes to the operational stage. Top priority will be given to locals for Semi-Skilled and Unskilled jobs. With the development of this Plant there will be lot of scope for more ancillary development, which in turn will benefit the nation. There will be a certain enhancement of educational and medical standards of people in the study area. There will be generally positive and beneficial impacts by way of economic improvements, transportation, aesthetic environment and business generation. There will be an overall upliftment of socio-economic status of people in the area with the implementation of the project. 3

9 3.0 Project Description 3.1 Type of project including interlinked and interdependent projects: Type of Project: The proposed project is expansion of Induction Furnace unit; which will be installed within existing plant premises i.e. at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.). The Sponge Iron/ Pig iron and other additives like Ferro alloys and scraps will be melted in Induction Furnaces and Steel Ingots/ Billets/ blooms are casted through Continuous Caster Interlinked Project: No interlinked project is envisaged. 3.2 General Location: The proposed integrated steel plant will be installed within existing plant premises i.e. at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.). 3.3 Details of alternate sites considered: The proposed expansion is carryout within existing premises only and no additional land is required for the same; hence no alternative site had been considered. 3.4 Size or magnitude of operation. The post expansion plant configuration is given as below: Units Manufacturing of Steel Ingots/ Billet/ Blooms through Induction Furnace with Concast Route Installed Capacity (TPA) 4

10 3.5 Manufacturing Process and Flow Diagram: Manufacturing Process: Semi finished steel in the form of Steel Ingots & Billets is manufactures through Induction Furnace with Concast that works on the principle of induction melting of Sponge Iron/ scrap/ Pig Iron with the help of electric power. An alternating electromagnetic field induces eddy current in the metal so that the electrical energy converts into heat whose quantity depends on the resistively of the charge. If the charge consists of the metal scrap, chips other metal rejections then the eddy currents arise between separate pieces of charge because high contact resistance. So small charge pieces required increase frequency of current that feeds the induction heater in order to speed up melting of the charge. Induction furnaces operate on current of commercial frequencies (50 HZ) or on current of higher frequencies from 500 to 2000 Hz. Induction furnaces are beneficial in steel making for low melting loss. An Induction furnace constitutes a single larger primary coil made of water- cooled copper tube. The working voltage impressed across the terminals of the coil. These furnaces have a great much application for melting of iron, Steel and Nonferrous. This type of furnace has a rammed lining. The ramming mass contains should more than 96% silica and minimum of Al 2 O 3 & Fe 2 O 3. Before ramming the material a steel template kept inside the furnace and rammed the material between the template and the insulated coil of the induction heater. To minimize the consumption of electric power and cut down the melting period the crucible wall must be as thin as possible. During running the furnace one must keep watch on the state of lining because it operates under most unfavorable condition. The inside of crucible lining is in contact with liquid metal while its outside surface contacts the water-cooled induction. 5

11 Charging: - The pieces of scrap should be kept on the bottom gently to avoiding impacts into a compact heap. The scrap pieces / Pig Iron should be in small size that provide good compacting of the batch without leaving spacing between the charge and crucible wall. This offer an advantage of quick melting of the charge with a minimum power spent in the stage for the heat. The zone of a highest temperature during the meet lies in the power part of the crucible therefore it is practical to place first high melting scrap on the crucible bottom. Large and high melting pieces should stand parallel and close to the crucible was while low melting components should be in the middle of the large crucible. Small capacity furnaces are loaded manually and the large capacity furnaces with the aid of buckets. Melting: - At the beginning of the melting the furnace works for 5 to 10 minutes on low power until the surge of current fed from the generator disappear. The furnace power is then brought up to a maximum. The charge melts with the crucible held closed. When the charge approaches the fluid stages then the solid pieces are pressed backed with a crow bar. The furnaces is then loaded to its capacity by adding small size of scrap as soon as the charge melted, the stag is formed to protect the metal from oxidation and to avoid reduce the melting loss. If the slag generate in excess it should be skimmed off periodically, at the last to deoxidized the metal with Ferromanganese, Silico-manganese and Ferro-silicon. Now the metal is ready tap for either in ingot or billet casting. Casting in Ingot mould: - For casting ingot the metal temperature should be around 1560ºC/ 1570 ºC in ladle. Liquid metal tap from furnace to ladle by the help of crane then the ladle in 6

12 the centered on the trumpet metal flows from the ladle bottom and filled the ingot mould. Thus the ingot is ready. Casting in B.C.M: - Steel for making billet, the temperature of liquid metal from furnace to ladle, the final metal temperature in ladle should be 80ºC. Superheat from liquidious. Liquid metal is storage in tundish through ladle then the tundish metal passes from the various section of mould jacket that is as per requirement (100 X 100 mm, 125 X 125 mm, 160 X 160 mm, 200 X 200 mm) this is a continuous process, length of billet of is cut as par requirement. Process flow chart is enclosed. PLANT FACILITIES FOR CONTINUOUS CASTING MACHINE Billet caster The billet caster shall be complete with ladle stand, mould assembly, strand guide segments and supports withdrawal and straightening system, mould cooling system, Cut off equipment including length measuring device, Marking machine etc. Requisite dummy bar and facilities for Dummy bar disconnecting and a dummy bar receiver will be included. Auxiliary equipment The auxiliary facilities required for the Billet caster will be included. This will include operating platform, cooling bed, ventilation system for spray chambers, equipment for collection and disposal of crop-ends, Repair and assembly facilities for moulds, and segments, Tundishes, Tundish preparation facilities including tundish drying station, Hydraulic system and Centralized lubrication system, scale handling system. Electrical Equipment: The electrical equipment for the caster will include the drives, HT switchgear, LT switchgear, control desks, cabling and accessories. 7

13 Instrumental and automation: A modern DCS process automation system shall be provided for control of process function, sequencing and interlocking and to execute safely controls. Specific features shall include mould level control, computer aided quality control, and process field instruments comprising measuring units, transmitters, load cells, actuators, Programmable controllers and PCs ands communication system. PLANT FACILITIES for LADLE FURNACE The LF installation will be single station system with provision for arc heating, inert gas stirring, and addition of ferroalloys and additives. The LF will be complete with transformer, Ladle stirring system Aluminum wire feeder, Carbon injecting device, additives storage and addition system, Sampling and temperature measuring device. A fume extraction and cleaning system consisting of bag filters, ID fan and chimney with the related ductwork will be provided. Auxiliary equipment: The auxiliary facilities required for the LF will be included the transfer cars, slag handling facility, hydraulic and lubrication systems, Electro nipping station Process Flow Diagram: 8

14 3.6 Raw material requirement, Transport etc.: Raw Material Requirement and its sources: Sponge Iron, Scraps and Ferro Alloys are the main raw material for production of Steel Ingots/ Billets/ Blooms, their quantity and sources of raw material is given as below: Sr. No Raw material Annual Requirement Source i. Sponge Iron Tons/ Year Nearby units ii. Scraps Tons/ Year Open market iii. Ferro Alloys 900 Tons/ Year Raipur Mode of Transport for Raw materials and finished products: There are Nos. of sponge iron manufacturing units are in operation hence sponge iron and other raw materials are easily available. Finished product Steel Ingots/ Billets/ Blooms are mainly sold to nearby Rolling Mill units and the same will be transported through covered trucks only. The desired amount of power will be supplied by CSEB Power Grid Market of Final Products: There is huge gap in demand and supply of final steel products; hence the market potential for final product is fairly good. 3.7 Resource optimization/ recycling and reuse envisaged in the project: No fuel burning for operation of existing as well as proposed installation. After metal recovery from solid wastes [slag], the same is being utilized for road making and dumping empty close mines. 3.8 Availability of water its source, Energy/ power requirement and source: Water Requirement and its sources: It is envisages that about 120 KL / day of water will be required for the operation of existing as well as proposed furnaces. The desired quantity of water will be drawn from CSIDC Ltd. The necessary permission has already been obtained. 9

15 3.8.2 Sources of Energy/ Power and its sources: The type of Energy/ power sources for existing as well proposed induction Furnaces is Electricity which will be sourced from CSEB Grid. 3.9 Generation and disposal of Wastes [Waste Water and Solid Wastes]: Waste Water Generation: The industrial stream of plant is recycled through closed cooling circuit hence there will not be any effluent generation from industrial stream. Regarding domestic effluent; we hereby like to state that the same is being treated through septic tanks followed by soak pits and no effluent left-out for disposal. For further expansion the domestic effluent will be treated through existing septic tanks and soak pits. No effluent will be let-out the premises; hence there will not be any chance of contamination of water bodies due to proposed installation Solid Waste Generation and its disposal: Furnace slag will be generated as solid wastes from proposed expansion, the same will be crushed in to course and segregated in to metallic and non-metallic contents. Metallic contents will be recycled back as raw material for captive utilization and non-metallic contents will be disposed off in nearby abandoned Quarries and also been used for road embankment. ***** 10

16 4.0 Site Analysis This chapter gives details regarding type of land; land use, topography and site connectivity etc. The details are as follows: 4.1 Connectivity. The plant site is well connected with Road; situated on Durg Raipur Highway. The nearest railway station is Durg on Mumbai Howrah Rail Line. The following table gives brief regarding connectivity of the proposed site: Component Road Rail Air Sea Port Description : NH km passes from Southern to eastern side. : Rasamda 1.85 KM Durg : 9.50 km : Mana Air Strip km : Visakapatanam 560 km 4.2 Land Form, Land use and Land ownership Land Form: Present is more or less flat terrain and is a part of Industrial Area developed by CSIDC Limited Land Use of the Project Site: Present land use is industrial and existing land is sufficient for installation of proposed expansion. 4.3 Topography. Topography of land is terrain without any undulation. 4.4 Existing Infrastructure. All required infrastructure is prevailing in the site. 4.5 Soil classification The soils in the area are generally of clayey loam types with sandy loam soil in some areas. The soils have been classified as Ustocherpts/ Ustorthents/ Rhodustalfs/ Haplustalfs/ Haplusterts, as per pedological taxonomy. 11

17 4.6 Climatic data from secondary sources. The climatic condition of this area is semi arid. The maximum temperature goes up to 46ºC during summer and the minimum temperature goes down to 8.0ºC during winter in the month of January-February. The winds in the area are light to moderate during summer and winter. The rainfall of the district is 1477mm. Generally light to moderate winds prevails throughout the year. Winds were light and moderate particularly during the morning hours. While during the afternoon hours the winds were stronger. A review of the wind rose diagram shows that predominant winds are mostly from S, SW, NW, WNW, W, NE and N directions followed by NW direction. ***** 12

18 5.0 Planning Brief 5.1 Planning Concept: The proposed planning is to expand existing induction furnace unit within the existing premises only i.e. at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.) and no additional land is required for proposed installation. The installed capacity after proposed expansion will be: Units Installed Capacity Existing Proposed Total Manufacturing of Steel Ingots/ Billet/ Blooms TPA TPA TPA 5.2 Population Projection: There are no major human settlements in the close vicinity of the project site. The manpower requirement will be sourced from the local areas to the extent possible; hence not much of settlement of outside people in the area. However population concentration may increase around the project site due to increase in ancillary activities. 5.3 Land use planning: About 4.5 acres of land is acquired for installation of operational facilities at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.); which is quite sufficient for installation of proposed Steel mantling shop: Item Area in Acres [post expansion scenario] Built up area 1.50 Internal roads 0.25 Storage yard 0.75 Greenbelt 1.50 Open area 0.50 Total land Amenities/Facilities. Facilities like canteen, rest room facilities is already constructed in the existing plant as basic facilities to workers. No other additional facilities are proposed. ***** 13

19 6.0 Proposed Infrastructure 4.50 acres of land is acquired for installation of existing operational facilities at Plot No.: Plot No.8 & 11, Borai Industrial Growth Centre, Durg (C.G.); which is quite sufficient for installation of proposed Steel mantling shop: Item Area in Acres [post expansion scenario] Built up area 1.50 Internal roads 0.25 Storage yard 0.75 Greenbelt 1.50 Open area 0.50 Total land Industrial Area (Processing Area). The main plant area comprises of Furnaces area, Storage area and ancillary areas etc contribute approx 1.50 acres out of 4.5 acres. 6.2 Residential Area (Non Processing Area). No colonization is proposed; however facilities like canteen, rest room etc facilities is already been provided existing operational facilities. 6.3 Green Belt. About 1/3 rd of total land availability is reserved for plantation i.e. greenery will be developed in area not less than 1.50 acres. 6.4 Social Infrastructure. Social infrastructure will be developed as per need based in the Villages of the close vicinity of the project. 6.5 Connectivity: The plant site is well connected with Road; situated on Durg Raipur Highway. The nearest railway station is Durg on Mumbai Howrah Rail Line. The following table gives brief regarding connectivity of the proposed site: Component Road Rail Air Sea Port Description : NH km passes from Southern to eastern side. : Rasamda 1.85 KM and Durg : 9.50 km : Mana Air Strip km : Visakapatanam 560 km 14

20 6.6 Drinking Water Management: It is estimated that approx 5.0 KL/ Day of water will be required during operation after proposed expansion. The desired amount of water will be taken from CSIDC Ltd Sewerage System. Domestic effluent collected through toilet blocks will be collected through well designed sewer network and send to Septic tanks followed by soak pits. 6.8 Industrial Waste Management. It is estimated that total effluent generation after proposed expansion will be 4.0 M 3 / day; which will be properly treated through well designed septic Tanks followed by soak pits and no effluent remains after soak pits. No industrial effluent is envisages to. 6.9 Solid Waste Management. Furnace slag will be generated as solid wastes from proposed expansion, the same will be crushed in to coarse and segregated in to metallic and non-metallic contents. Metallic contents will be recycled back as raw material for captive utilization and non-metallic contents will be disposed off in abandoned quarries and also been used for road embankment Power requirement & its source. The type of Energy/ power sources for our proposed induction Furnaces is Electricity which will be sourced from CSEB Power Grid. ***** 15

21 7.0 Rehabilitation and Resettlement Scheme: No rehabilitation and resettlement is required as there are no habitations in the in the Project site. ***** 16

22 8.0 Project Schedule & Cost Estimates: 8.1 Likely date of start of construction: Construction activity pertaining to installation of proposed expansion will be started within 6 months from the date of Environment Clearance and Permission to Establishment from Chhattisgarh Environment Conservation Board. 8.2 Estimated project cost: The estimated project cost is about ` crores, its breakup is given as below: Particulars Cost of Expansion (` in Crores) i. Land & Site Development Existing ii. Building & Civil Works 2.00 iii. Plant & Machinery iv. Electrical Installation 2.00 v. Furniture & Office Equipments 0.25 vi. Misc. Fixed Assets incl. Pollution Equip Total Investment Means of Finance: Sr. No. Means of Finance Amount (`. in Crores) 1. Share capital Term Loan Total Amount ***** 17

23 9.0 Analysis of proposal (Final Recommendations) 9.1 Financial and social benefits: With the implementation of the proposed project, the socio-economic status of the local people will improve substantially. The land rates in the area will improve in the nearby areas due to the proposed expansion activity. This will help in upliftment of the social status of the people in the area. Educational institutions will also come-up and will lead to improvement of educational status of the people in the area. Primary health centre will also be developed by us and the medical facilities will certainly improve due to the proposed project. 9.2 Socio-Economic Developmental Activities The management is committed to uplift the standards of living of the villagers by undertaking following activities / responsibilities as the part of Corporate Social Responsibility. Health & hygiene Drinking water Education for poor Village roads Lighting HEALTH & HYGINE Personal and domestic hygiene, Maintaining clean neighborhood, Monthly health camps offering free-check up & medicines Ambulance services Education & drug de-addiction, aids. DRINKING WATER Making drinking water available at centralized locations in the village, SUPPORTING EDUCATION Providing books to all poor children, Conducting annual sports festival in the village schools, Providing amenities like fans, lavatories, Maintain play ground etc. ***** 18