Acknowledgement... i Abbreviations... ii Executive Summary... iv

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2 Contents Acknowledgement... i Abbreviations... ii Executive Summary... iv CHAPTER 1: Introduction Background of the project Scoping study objective Methodology Summary of secondary literature survey... 3 CHAPTER 2: The Ludhiana-Batala-Jalandhar Forging & Casting cluster overview Cluster Profile Ludhiana Batala Jalandhar Forging cluster profile Ludhiana Batala Jalandhar Casting cluster profile The Process Forging process Foundry or Casting Process: Fuel use Ludhiana Batala Jalandhar Forging cluster Ludhiana Batala Jalandhar Casting cluster Major energy consuming facility Ludhiana Batala Jalandhar Forging cluster Ludhiana Batala Jalandhar Foundry (Casting) cluster Validation of information of earlier BEE -SME Program Energy Saving Scope Technologies identified for Forging Industries Technologies developed for Casting Industries Past Experience with EE interventions Financing needs of industries Major Barriers Mitigation measures for eliminating barriers Aspirations and willingness of Associations/ Units Road map for implementation Conclusion Annexure 1: List of units studied under the Ludhiana-Batala-Jalandhar scoping study

3 List of Tables Table A: Energy and GHG emission saving potential... v Table 2.1: Fuel wise break up Table 2.2: Fuel wise break up Table 2.3: Specific Fuel consumption of furnace oil based batch type re-heating furnace Table 2.4: Specific power consumption of conventional type turning machine Table 2.5: Specific Fuel consumption of coal based cupola furnace Table 2.6 Cost benefit analysis of Induction heater Table 2.7: Replication potential of Induction heater technology Table 2.8 Cost benefit analysis of Special purpose machine Table 2.9: Replication potential of Special purpose machine Table 2.10 Cost benefit analysis of Divided blast cupola furnace Table 2.11: Replication potential of divided blast cupola Table 2.12: Cost benefit analysis for IGBT based induction furnace Table 2.13: Replication potential of IGBT based induction furnace Table 2.14: Steps for implementation of project List of Figures Figure 1.1: Meeting with Association Representatives... 3 Figure 2.1: Market -share... 6 Figure 2.2: Type of units based on furnace type... 8 Figure 2.3: Market -share... 9 Figure 2.4: Maps showing the geographical location of cluster cities Figure 2.5: Flow chart of forging process Figure 2.6: Process flow diagram of foundry process Figure 2.7: Furnace oil fired batch type furnace Figure 2.8: Conventional lathe machine Figure 2.9: Single Blast copula furnace Figure 2.10: Induction furnace Figure 2.11: Induction heater Figure 2.12: Special Purpose Machine Figure 2.13: Divided blast furnace Figure 2.14: Induction furnace... 27

4 Acknowledgement InsPIRE Network for Environment, New Delhi wishes to place on record its sincere gratitude towards United Nations Industrial Development Organization, New Delhi for entrusting the prestigious assignment of carrying out a scoping study for Ludhiana-Batala-Jalandhar Forging & Casting cluster under the project titled Promoting Market Transformation for Energy Efficiency in MSMEs. We extend our sincere gratitude to Mr. Debajit Das, National Project Coordinator for the project titled Promoting Market Transformation for Energy Efficiency in MSMEs, for coordination, support, valuable inputs, and guidance for the project. We are also thankful to S. Gurpargat Singh Kahlon, President, Autoparts Manufacturers Association of Punjab, S. Gurpreet Singh Kahlon, MD, Bharat International, Ludhiana, S. Narinderpal Singh, MD, Global Exports, Jalandhar & Mr. Vinesh Shukla, Ex-Chairman, The Institute of Indian Foundrymen & President, Laghu Udyog Bharti, Batala for their valuable inputs and support during the course of this study. We thank all forging and casting industry members who helped us at various points of time during this study. InsPIRE Team i

5 Abbreviations APFC APMA AC BEE BJL CO DBC DG EET EESL FO GEF GoI GHG GDP HP IF kcal kg kva kw kwh LPG LDO LSD MSME MT MS OEM PI SPM Automatic Power Factor Controller Auto Parts Manufacturers Association Alternating Current Bureau of Energy Efficiency Batala Jalandhar Ludhiana Cluster Carbon Mono-oxide Divided Blast Cupola Diesel Generator Energy Efficient Technology Energy Efficiency Services Limited Furnace Oil Global Environment Facility Government of India Greenhouse Gas Gross Domestic Product Horse Power Induction Furnace Kilo Calories Kilogram Kilo Volt Ampere Kilo Watts Kilo Watt Hour Liquefied Petroleum Gas Light Diesel Oil Low Sulfur Diesel Micro Small and Medium Enterprises Metric Ton Mild Steel Original Equipment Manufacturers Pig Iron Special Purpose Machine ii

6 SEB SFC SPC SEC TPM UNIDO UCPMA VFD State Electricity Board Specific Fuel Consumption Specific Power Consumption Specific Energy Consumption Ton Per Month United Nations Industrial Development Organization United Cycle Parts Manufacturers Association Variable Frequency Drive iii

7 Executive Summary UNIDO s Project Promoting Market Transformation for Energy Efficiency in MSMEs aims to promote the implementation of energy efficiency in the MSME sector; to create and sustain a revolving fund mechanism to ensure replication of energy efficiency measures in the sector. InsPIRE Network for Environment has been awarded with Scoping Study Project of Ludhiana, Jalandhar, and Batala Forging and Casting Cluster. A team of professionals from M/s. InsPIRE Network for Environment conducted the scoping study. Meetings were held with various associations, industry owners at Ludhiana, Jalandhar and Batala. A detailed survey was carried out to ascertain the type, nature of units in the cluster. A. Cluster profile:- The Batala, Ludhiana and Jalandhar forging & casting cluster comprises of around 2000 working forging units and 500 casting units. The forging units manufacturer parts for industrial sectors such as automobiles, bicycles, agricultural implements, fasteners etc. and are spread over Ludhiana & Jalandhar cluster. The casting units manufacturer parts for industry such as automobile, agricultural implements, hand tools etc. and are mainly concentrated in Jalandhar & Batala cluster. B. Energy efficient technologies:- There are well established and proven energy efficient technologies that have been developed and implemented in both casting and forging cluster. However, the penetrations of such technologies are low. These technologies have a saving potential of around 15 to 20 % in specific energy consumption. The energy efficient technologies with the highest potential for energy saving and with highest replication potential have been identified under the assignment and are listed below: Forging sector: Replacement of conventional fuel fired batch type re-heating furnace with induction heater Replacement of conventional lathe & drilling machines with special purpose machines Casting sector: Replacement of conventional single blast cupola with divided blast cupola furnace. Replacement of oil fired rotary furnace with electric induction furnace. C. Willingness for adaption of energy efficient technologies The industries as well as the associations expressed that, there is a lack of adequate financing to the units at affordable rates for up gradation and EE projects, the prevailing bank interest rates are high for borrowing, and banks are not adequately informed to finance EE projects due to perceived risks. The units seek low cost funding for EE projects, guaranteed energy & monetary savings from the EE projects, financial incentives including subsidies, etc. The units have iv

8 responded positively on availability of revolving fund for financing EE projects, welcomed it, and provided affirmative views. D. Energy and GHG emission saving potential: The technologies listed for both the sectors are well proven with significant energy saving and GHG reduction potential. These technologies also have an attractive payback period. The table below summarizes the energy saving potential for the proposed technologies, its investment and pay back periods: SN Base line Scenario Furnace oil fired re heating furnace Turning lathe machine Convectional Cupola Furnace Convectional Inductiion furnace Table A: Energy and GHG emission saving potential Energy Efficient technology Reheating furnace replaced with Induction Heater Conversion of conventional lathe machines to Special purpose machines Conversion of conventional Cupola furnace with Special purpose machines Conversion of conventional induction furnace with IGBT based induction furnace Potential units for replication in the cluster (Nos) Annual energy savings potential from a typical forging unit (toe/year)* Annual GHG emission saving potential from a typcial forging unit (tco2/annum) Overall energy saving potential from the cluster (toe / year) Annual GHG emission saving potential from the cluster (tco2/annu m) Total * for the number of units already implemented, refer chapter 2 Assumption / conversion factors: Specific gross calorific value of FO has been considered as 9,600 kcal /kg Specific gross calorific value of Coal has been considered as 3,600 Kcal/kg Emission factor FO has been considered as 77.8 t CO 2 per TJ (as per IPCC guideline) v

9 Emission factor Coal has been considered as t CO 2 per TJ (as per IPCC guideline) The annual production capacity has been considered as 75,000 MT (similar to small capacity units) E. Major Barriers for implementation: The major barriers for penetration of EE technologies in the cluster has been identified as (1) Lack of information, awareness, and knowledge on part of the unit owners on EE technologies and its overall benefits; (2) lack of technical knowledge for implementation; (3) lack of dissemination of the results of the successfully implemented EE projects in the cluster; (4) poor after-sales service by the EE equipment or other machinery suppliers; (5) lack of confidence on EE technology suppliers due to large variation of budgeted cost and actual expenses; high perceived risks; (6) lack of affordable financing for investing in EE technologies and banks reluctance for funding EE projects. F. Mitigation measures for eliminating the barriers: Brainstorming meetings with stakeholders should be conducted in cluster-level on the proposed project strategy. This should be supplemented by the feedback received from the industry counter-parts. The implementation should have adequate numbers of demonstration/ pilot projects wherein the perceived risk should be mitigated; this can follow with large scale upscaling and replication of the proven technologies; well-structured and effective technical assistance component should be made available for implementation of EE projects; technical capacity building and training of the technicians should be done; capacity of EE equipment should be carried out in cluster level. Although successful demonstration of some of the technologies has already been done in the cluster; there is a need for conducting detailed study freshly to identify new and potential technologies. Based on the identified technology, necessary decisions may be taken on piloting technologies which has not been implemented as of date. The technology identification study and conduction of energy audit should be a pre-activity prior to the roll-out of the implementation phase of the project. G. Road Map: Considering the energy saving potential and success of the proposed EE technologies, the following road map is being proposed for the implementation of the project: Brainstorming Meetings: Brainstorming meetings needs to be conducted in each of the clusters to disseminate the proposed project strategy and also to get inputs/feedback from industries. Energy audits: Energy audits need to be conducted in the selected units for establishing the baseline scenario of the units and for identifying energy saving potential with cost-benefit analysis. This is required as need of each industry is different. Strengthening of Local service providers: The cluster lacks good local service providers. By strengthening the local service providers the proposed technologies can be easily implemented and technical issues while erection and maintenance issues can be easily addressed. Implementation of technologies: To start with pilot demonstration projects needs to be implemented for all the identified technologies which can be further upscaled. vi

10 Dissemination of success stories: Audio and video documentation of the success stories and case studies needs to be developed. This is required for wider penetration of the EE technologies in the cluster. Training programmes: Skill development of workers needs to be taken up, as most of the units are lacking on skilled labour. vii

11 CHAPTER 1: Introduction 1.1 Background of the Project Micro, small and medium enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas, thereby reducing regional imbalances assuring more equitable distribution of national income and wealth. The sector consists of over 36 million units, as of today, provides employment to over 80 million persons. The sector through more than 6,000 varied products contributes around 8% of GDP; 45% of the total manufacturing output and 40% of the total exports from the country. The MSME sector has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth. Amidst the positive statistics, the MSME sector today is facing extreme challenges in the form of rising competitive market; increasing production cost and thinner profit margin. Energy forms a significant portion of the production cost in MSME units catering to 30-40% of the average production cost. The rising energy costs in recent years have been a matter for concern for the sector. Efficient utilization of energy and raw materials becomes imperative for the sustenance of the sector as they work on low-profit margins. The inefficient utilization and excessive use of raw materials, fuels, and energy lead to exceeding levels of energy intensity and environmental pollution. The excessive utilization of energy resources also impacts the regional energy balance and energy security. Further, it impedes the productivity of enterprises and economic development of communities at large. It has been established over the years that the major barriers towards penetration of energy efficiency in the MSME sector has been low awareness and incapability to finance. Also, the MSME sector to a large extent requires external support for technological upgrdation and process improvisation. Under the above scenario, United Nations Industrial Development Organization (UNIDO) in association with Ministry of MSME, Government of India with funding support from Global Environmental Facility (GEF) has launched a national level project titled Promoting Market Transformation for Energy Efficiency in MSMEs. The project aims to promote the implementation of energy efficiency in the MSME sector; to create and sustain a revolving fund mechanism to ensure replication of energy efficiency measures in the sector; and to address the identified barriers for scaling-up energy efficiency measures and consequently promote a cleaner and more competitive MSME industry in India. The project has the following objectives: Promote implementation of energy efficiency in the MSME sector, particularly targeting the micro unit that constitutes more than 90% and need support for technology induction; 1

12 Create and sustain a mechanism that would ensure replication of energy efficiency measures in the sector; Create a revolving fund by apportioning a part of the revenues from the aggregator (EESL) that would sustain the activities beyond the life of this project; and Address the identified barriers for scaling-up energy efficiency measures and consequently promote a cleaner and more competitive MSME industry in India. The project is built around four substantive components, and these are: Component 1: Program to identify energy intensive clusters and replicable technologies Component 2: Implementation of technology demonstration projects Component 3: Aggregation of demand for demonstrated technologies in the clusters Component 4: Financial models to support replication of energy efficiency projects in MSMEs 1.2 Scoping Study Objective The project has identified five clusters initially for commissioning of the project; the Ludhiana-Batala-Jalandhar Forging & Casting cluster being one of them. Prior to the actual field implementation, the project seeks to engage a technically qualified and competent consulting firm for conducting a short scoping study related to energy efficiency in specified cluster. M/s InsPIRE Network for Environment has been entrusted with the task of carrying out the scoping study for the Ludhiana-Batala- Jalandhar Forging & Casting cluster. The scope of work includes conducting preliminary baseline study adequately addressing the technical, economic and financial issues to develop a feasibility study for commissioning the identified sites. The competency scoping study also includes establishment of the present level of energy consumption and identification of potential areas for improvement of energy efficiency. The scope of work for the assignment includes: Profiling of the cluster including the number, categories, classification, and product produced capacities, locations etc., no. of employees, business volumes, market scenarios, sustainability scenario success factors etc. Profiling of fuel used, the type of fuel used, facility wise quantum of use, consumption per ton. Identification and profiling of major energy consuming facilities Validation of information of earlier BEE-SME projects. Energy saving scope, past experience of EE interventions. Financing needs of the industries, major barriers; mitigation measures Documenting aspirations and willingness of associations / units Developing a roadmap for implementation. Providing concluding remarks. 2

13 1.3 Methodology A diversified approach was adopted for conducting the study which included secondary data research, interactions with industry owners at their premises, meetings with industry associations representatives, interaction with MSME officials, walk through audits at few selected units, collecting data through questionnaire, analysis of outcome and documenting key findings. The list of units studied under the assignment is placed at Annexure A. The InsPIRE team carried out a detailed secondary literature research of the forging & casting cluster of Ludhiana-Batala-Jalandhar to understand the process and profile of the industry in the cluster. The team subsequently visited industries in the cluster to get firsthand information of prevailing on-ground situation. Meeting with unit owners who had already implemented energy saving measures under BEE scheme viz. Ms. Bharat International, M/s. N.N. Forging, M/s. Global Exports were carried out. The team also visited the non-intervened industries in all the three clusters to understand the potential of energy savings. Baseline energy audits were carried out in some industries to determine the existing energy level. Team from InsPIRE along with officials from UNIDO, EESL & DC-MSME office also conducted brainstorming meetings with the industry associations representatives at Ludhiana, Jalandhar & Batala. These meetings were held between January 23-25, The participants were briefed about the UNIDO initiative for promoting energy efficiency in forging industry including the proposed methodology, financial and technical intricacies of the project. The data gathered as above was compiled, analyzed critically, and the scoping study report was prepared and has been presented in the sections below. Figure 1.1: Meeting with Association Representatives 1.4 Summary of secondary literature survey A detailed secondary research was carried out, as part of the assignment, from various relevant sources, including available literatures on forging and casting sector; webportals and publications on the specified cluster. A list of publications and portals referred to, during the assignment has been listed in Annexure B. The outcomes of the secondary data research have been summarized below: The Ludhiana- Jalandhar cluster forms a significant portion of the country s forging industry comprising of a large numbers of micro, small and medium 3

14 enterprises. The cluster is of prime importance both historically and strategically based on the variety of products manufactured and industrial sectors which is catered to by these units. A large quantum of the industries present here is also engaged in export. The detailed profile of the cluster is provided in subsequent sections. The Jalandhar Batala cluster has being long known for its casting (foundry) sector and a large number of units produces casts to cater to a variety of industries like automobiles, agriculture, machine tools etc. A large portion of the industry in Batala is also involved in hand tool manufacturing. Both forging and foundry sector are highly energy intensive with majority of the energy used in the form of thermal energy. A large variety of fossil fuel including coal, coke, furnace oil, diesel, HDD etc. is used by using. Electrical energy is also used by these industries. The only intervention made till date was through the BEE-SME program in 2003 and In 2003, the Ludhiana-Jalandhar-Batala foundry cluster was studied and energy efficient technologies related to the same were identified. Later in 2013, under BEE-SME program Ludhiana forging cluster was taken for intervention wherein 20 units were supported for pilot demonstration of energy efficient technologies. 4

15 CHAPTER 2: The Ludhiana-Batala-Jalandhar Forging & Casting cluster overview 2.1 Cluster Profile The following section has detailed out the cluster profile separately for the Ludhiana Batala-Jalandhar forging and foundry (casting) cluster Ludhiana Batala Jalandhar Forging cluster profile The Indian forging industry has emerged as a major contributor to the manufacturing sector of the Indian Economy. It is a key element in the growth of the Indian automobile industry as well as other industries such as general engineering, construction equipment, oil, gas and power. The Indian forging industry is well recognized globally for its technical capabilities. With an installed capacity of around 37.7 lakh MT, Indian forging industry has a capability to forge variety of raw materials like carbon steel, alloy steel, stainless steel, super alloy, titanium, aluminum, etc. The Ludhiana Jalandhar forging cluster comprises of around 2000 registered units scattered across different industrial and commercial areas. Over and above these 2000 units, there are numerous very small capacity forging units who are not registered and work in clusters mainly relying on job-works. There are approximately 2000 forging units in the cluster mainly located in and around the cities of Ludhiana and Jalandhar. The cumulative production capacity of the cluster is approximately 17.5 million tonnes. These units are categorized as Large, Medium, Small, and Micro units. Categories: The forging units in Ludhiana-Batala-Jalandhar can be categorized into Large, Medium, Small and Micro units, depending on their production capacity. In Ludhiana and Jalandhar, over 95% of the units fall under MSME sector. The categorization of the units based on the production capacity has been summarized below: Very large (capacity above 75,000 MT), Large (capacity above 30,000 to 75,000 MT), Medium (capacity above 12,500 to 30,000 MT), Small (capacity above 5,000 to 12,500 MT) and Very small (capacity up to 5,000 MT). Classification: Forging units cater to a wide number of industries like automobiles, bicycle, fasteners, agriculture etc. The classification of the forging units can be done based on the product manufactured and the end sector it caters to. The classification and share of the units based on the product manufactured has been detailed out in the figure below: 5

16 Market-share 10% 7% 13% 20% 37% 13% Auto Parts Bicylce Fasteners Handtools Agriculture Others Figure 2.1: Market -share Products: The forging clusters in Ludhiana & Jalandhar manufacturers a wide variety of products depending on the needs of the end-user. Almost 50% of the products are used for the Automobile industry including the Bicycle manufacturing sector. The forged products are processed and finished as per the requirement of clients. The forging industry manufactures close to 300 different variety of products some of which are crank-shafts, washers, flanges, shafts, brackets, load bearing hooks, garden tools, hammers, manufacturing gears, rollers, die blocks, rings etc. Production Capacity: The MSME forging cluster consists of units with a wide range of forging capacity ranging from 30 tons to 1500 tons per month. While the larger units are mostly automated using latest machinery, the micro and smaller units are still heavily dependent on manual labor and age-old machine tools. There are many industries in the cluster that carry out production based on job-work assigned by larger units. Jalandhar mainly has hand tools and garden/agricultural implements in forging industry. There are about 350 units in this area. Locations: Both Ludhiana and Jalandhar houses densely populated forging industry. Around 1500 forging units exit in Ludhiana. Most of the micro industries in Ludhiana are located in the Shimla Puri Areas. The small and medium scale industry is spread over Industrial Estate and Focal Point areas. The forging industry in Jalandhar is concentrated in Focal Point area. Most of the industries are small scale to medium scale industries. They manufacture gardening tools, scaffoldings, hand tools etc. Employees: A typical forging industry works mainly with outsourced/ contractual labors. Typical forging units consist of management group; followed by supervisor and outsourced semi-skilled and un-skilled laborers. The larger units consist of a foreman who is in charge of the entire production units. A typical forging unit employs around 10 to 50 6

17 personal. Thus, the Ludhiana-Jalandhar cluster in total employs close to 80,000 personal. Almost 3/4 th of the employees are un-skilled laborers. Market scenario: Current share of auto sector is about 50% of total forging production in the cluster while the rest is with the non-auto sector. Changes in Indian automobile industry directly impact forging industry, because the forging components form the backbone of the Indian automobile industry. Since the automobile industry is the main customer for forgings the industry s continuous efforts in upgrading technologies and diversifying product range has enabled it to expand its base of customers to foreign markets. The industry operates for 300 to 330 days to meet the market demand. Most of the units are operating in single hours shift. The Ludhiana-Jalandhar forging cluster has made rapid strides and currently, not only meets domestic demand, but has also emerged as a large exporter of forgings. The industry is increasingly addressing opportunities arising out of the growing trend among global automotive OEM s (Original Equipment Manufacturers) to outsource components from manufacturers in low-cost countries. As a result, the industry has been making significant contributions to country s growing exports. Sustainability Scenario: The units have been in operation since independence and have a good market standing of their own. With the younger generation taking up the mantle of industry, there is shift in paradigm towards more energy efficient socially responsible production. The younger generation knows that in order to compete on World level they need to upgrade which they are ready to do with some help from government sector. The Punjab Forging Association which was the representative body of forging cluster is now a defunct unit. Other representative industry associations include Auto Parts Manufacturers Association, Chamber of Industrial Commercial Undertaking, United Cycle Parts Manufacturers Association. Success Factors: Ludhiana & Jalandhar is known for its immense skill and low cost production. The industry here is quite sustainable because of reasons such as flexibility in operations, large variety of products, economic production, availability of raw material including alloy steel and a large market for automotive machine parts Ludhiana Batala Jalandhar Casting cluster profile There are more than 5,000 foundry units in India, having an installed capacity of approximately 7.5 million tonnes per annum. The majority (nearly 95%) of the foundry units in India falls under the category of small-scale industry. The foundry industry is an important employment provider and provides direct employment to about half a million people. A peculiarity of the foundry industry in India is its geographical clustering. Typically, each foundry cluster is known for catering to some specific end-use markets. For example, the Coimbatore cluster is famous for pump-sets castings, the Kolhapur and 7

18 the Belagum clusters for automotive castings and the Rajkot cluster for diesel engine castings. The Ludhiana-Batala-Jalandhar casting (foundry) cluster with an overall production capacity of 0.36 million tonnes, located in the state of Punjab, are important foundry clusters in Northern India. Out of the total production, almost 72% of the units with a production capacity of 0.26 million tonnes approximately fall under the MSME segment. The majority of the foundry units is in the small-scale and produces grey iron castings. About 15% of the foundry units are also exporting their products. The foundry units at Batala and Jalandhar are predominantly making machinery parts and agricultural implements. The cluster houses approximately 600 casting (foundry) units out of which around 200 units are engaged in cast iron and rest 400 units cast special grade material. The cast iron manufactures normally use cupola furnace for casting whereas the others use oil fired rotary furnace or induction melting furnace. However, in recent past, most of the units engaged in special grade casting have switched over to induction melting furnace. The figure shows the unit types based on fuel usage: Type of units Cupola furnace based units 350 Induction furnce based units Oil fired rotary furnace based units Figure 2.2: Type of units based on furnace type Categories: Broadly, foundry units are classified with respect to production capacity: Large Scale Units: These units are having annual Casting production above 1500 Metric Tonnes. There are around 50 such units in BJL Foundry Cluster. Medium Scale Units: These units have annual Casting production in the range of Metric Tonnes and there are around 200 units of medium scale size. Small Scale Units: These units are having annual Casting production up to 250 Metric Tonnes. There are around 250 such units in BJL Cluster. Classification: Foundry units in Jalandhar & Batala mainly cater to the automobile machinery parts and agricultural implements. The classification of the forging units can be done based on the product manufactured and the end sector it caters to. The classification and share of the units based on the product manufactured has been detailed out in the figure below: 8

19 6% 10% 10% 33% Machine Parts Agricultural implements Pumps / Fans 10% 35% Automotive / Oil Engines Tractor Parts Others Figure 2.3: Market -share Products: The foundry (casting) clusters in Ludhiana, Batala & Jalandhar manufacturers a wide variety of products depending on the needs of the end-user. Majority of the products include automobile parts, agricultural implements, machine tools, diesel engine components, manhole covers, sewing machine stands, pump-sets, decorative gates and valves. Majority of the units used industry grey casting process for manufacturing the foundry parts. Units in Batala are in operation since last years manufacturing lathe machines, milling/ pantograph, fan bodies, pump bodies etc. Production Capacity: Most of the units in Batala are using Cupola for melting as the normal production capacity of the units in Batala is 150 to 200 tpm, whereas only some units are having capacity of 100 to 150 tpm. Availability of Electricity in Batala across Dhir Road, GT Road is an issue; power is available from the grid for maximum 12/14 hours a day. Most of the units in Jalandhar and Ludhiana are having induction furnace in the range of 500 kg to 1 ton capacity whereas few units which are using local scrap as well as have high melting temperatures are having cupola and rotary furnace and has a capacity of minimum 5 ton per day. Total production capacity in BJL cluster can be estimated approx T/yr. However, the capacity utilization factor is very less. This is mainly because most of the units in BJL cluster operate for 1 4 days/month. The main reason behind this is, demand pattern and also power situation. Many units have closed down their production recently. Locations: The major locations wherein the casting units are spread are G.T. Road, Industrial area, Focal Point in Batala. In Jalandhar. Dada Colony Industrial Area, Focal point, Focal Point Extn, Udyog Nagar, I.D.C, Kapurthala Road & Preet Nagar. In Ludhiana Focal Point Phase 5 to 8, Janta Nagar, Bhagwan Chowk Area & Industrial area A/B. 9

20 Employees: A typical casting industry works mainly with outsourced/ contractual labors. Typical casting units consist of management group; followed by supervisor and outsourced semi-skilled and un-skilled laborers. The larger units consist of a foreman who is in charge of the entire production units. A typical forging unit employs around 10 to 50 personal. Thus, the Ludhiana-Jalandhar cluster in total employs close to 80,000 personal. Almost 3/4 th of the employees are un-skilled laborers. Market scenario: The Casting units are spread over Batala & Jalander region and most of the units are meeting the domestical demand. Most of the units in Batala are not in operation currently due to financial crises and also due it s to remote location. Sustainability Scenario: The units have been in operation since independence and have a good market standing of their own. With the younger generation taking up the mantle of industry, there is shift in paradigm towards more energy efficient socially responsible production. The younger generation knows that in order to compete on World level they need to upgrade which they are ready to do with some help from government sector Success Factors: Batala, Jalander & Ludhiana casting cluster is very old cluster in India. As the cluster is uniquely placed based on its products and quality, the cluster has a potential for revival & success Figure 2.4: Maps showing the geographical location of cluster cities 10

21 2.2 The Process To understand the fuel use, energy intensity and energy saving potential for the forging and casting (foundry) cluster, it is important to under the process of manufacturing for both forging and casting cluster Forging process A typical forging process has been shown in the process flow diagram below. The different steps involved in the forging process have been separately described. Raw Material Acid bath + Wash Drawing Cutting metal bars in to FO Fired Reheating Furnace Heating metal deg. C Forging Trimming Threading Heat Treatment (Hardening) Tempering Galvanizing and Final Product Figure 2.5: Flow chart of forging process In the process, the raw material i.e. Mild Steel or Alloy Steel is usually treated with acid bath & wash to remove surface impurities. This is followed by hot drawing operations, where cross-sectional area of the material is reduced to the required size. The metal bars are cut to pieces as per requirement and are ready for forging operations. The forging process usually involves feeding the metal bar into a batch type furnace (FO or LPG Fired) on an Electric Induction heater, to raise its temperature to the forging 11

22 temperature which in case of mild steel is C. This is followed by processing the heated bar in between the forging die, using a free hammer. The hammer impact causes the metal bar to attain required size of the die. Once cooled, the material is machine processed through turning, facing and trimming operations. Subsequently, threading and drilling is carried out, as per the need. A number of heat treatment processes are carried out before the material is ready for dispatch. The major energy guzzler in the forging process is the batch type re-heating (forging furnace), where material or charge is heated to a temperature of C. Furnace oil is the most commonly used fuel for firing of the re-heating furnace. A significant amount of energy is spent in the process. The other process where the thermal energy is used is in a annealing furnace used for heat treatment of the forged bars. An annealing furnace is also fired by furnace oil most commonly. The respect of the process is driven by electrical motors ranging from 2 HP to 15 HP. Electrical energy driven machines are used for machining purposes like trimming, grinding, drilling, threading etc Foundry or Casting Process: The process flow of a typical foundry process has been shown in the figure below. The different steps involved in the forging process have been separately described. Pattern Moulding Cooling and mixing Repair and Paint Mould Closing Pouring Cooling Cupola Melting Raw Material Knock-out Sand Shot Blasting Fettling Inspection Dispatch Figure 2.6: Process flow diagram of foundry process 12

23 The major manufacturing processes involved in a foundry process are: Melting Section: The raw material is melted in melting furnace. The melting furnace can be an induction furnace or rotary or arc furnace or cupola furnace. Molten metal from the melting furnace is tapped in Ladles and then transferred to the holding furnaces. Typically the holding furnaces are induction furnaces. The holding furnace is used to maintain the required molten metal temperature and also acts as a buffer for storing molten metal for casting process. The molten metal is tapped from the holding furnace whenever it is required for casting process. Sand Plant: Green sand preparation is done in the sand plant. Return sand from the moulding section is also utilized again after the reclamation process. Sand Mullers are used for green sand preparation. In the sand mullers, green sand, additives and water are mixed in appropriate proportion. Then the prepared sand is stored in bunkers for making moulds. Pattern Making: Patterns are the exact facsimile of the final product produces. Generally these master patterns are made of aluminum or wood. Using the patterns the sand moulds are prepared. Mould Preparation: In small-scale industries still the moulds are handmade. Modern plants are utilizing pneumatic or hydraulically operated automatic moulding machines for preparing the moulds. After the moulding process if required the cores are placed at the appropriate position in the moulds. Then the moulds are kept ready for pouring the molten metal. Casting: The molten metal tapped from the holding furnace is poured into the moulds. The molten metal is allowed to cool in the moulds for the required period of time and the castings are produced. The moulds are then broken in the shake out for removing the sand and the used sand is sent back to the sand plant for reclamation and reuse. The castings produced are sent to fettling section for further operations such as shot blasting, heat treatment etc. depending upon the customer requirements. In a foundry unit, the melting process is the main energy guzzler. Some of the units in the Ludhiana-Batala-Jalandhar cluster are still using single blast cupola furnace for melting purpose, even after the penetration of double blast cupola furnace in the cluster. Some units also use furnace oil fired rotary furnace or induction furnace for the melting purpose. 13

24 2.3 Fuel use Ludhiana Batala Jalandhar Forging cluster The fuel used in industry is mainly furnace oil are used (50-60% of units are based on this). Some 10-15% units are using LPG for heating, 8-10% units are using LDO/LSD and 5-7% is using coal. Induction heating is a recent introduction and is being used by only 10-15% of the units. Table 2.1: Fuel wise break up Fuel Type % age of units Induction 15% LPG 15% Coal 5% LDO/LSD 10% Furnace Oil/ used oil 55% Thermal energy is used in heating (forging furnace) and annealing furnace in a typical forging unit. The other processes like forging, machining and finishing is carried out by electrical energy Ludhiana Batala Jalandhar Casting cluster Major energy sources being used in foundry cluster are electricity and fuels such as Coal, Furnace Oil, and Diesel. This depends on application of technology, process requirement, availability, and economic and safety point of view. The two forms of energy being used in foundry sector in typical foundry unit are electrical energy and thermal energy. Electrical energy is being used in melting of iron in induction furnaces, operation of electrical utilities and thermal energy is being used in cupola furnaces operation. Availability and consumption of various fuels in typical foundry unit is mentioned in below sections. The fuel wise break-up of the type of units are shown below: Table 2.2: Fuel wise break up Fuel Type % age of units Coal % Furnace Oil 8.33 % Electricity % Coal used in foundry cluster is of different grade and is available with local dealers also. Furnace oil prices are highly market dependent. SEB is the main source of electricity supply. However availability of electricity is one of the key issues. 14

25 2.4 Major energy consuming facility Ludhiana Batala Jalandhar Forging cluster The major energy consumption in a forging unit is in heating of the raw material. Around 70-80% of the total energy is used here. The remaining 20 % is electrical energy used for lathe machines to obtain turning, facing, threading operations. A. Batch type re- heating furnace: Furnace Oil (FO) fired (or) LPG based batch type re-heating furnace is used to heat the metal pieces for forging. In a batch type re-heating furnace, the metal pieces are kept inside the furnace and heated for a period of mins, depending upon the size/shape of the metal piece and final product to be formed. The metal piece to be forged is heated to a temperature of 1150~ C. After the heating process, the red hot metal piece is kept on the forging die (using a tong) having the cavity of the product to be formed. The hot metal piece is forged using a free hammer on the forging press and the metal piece attains the required shape of the die. The re-heating furnace used in the sector is mostly old having conventional design with manual control option for fuel firing. A large quantity of heat penetrates from the furnace opening. Thus, the efficiency of such furnaces are low. Further, the flame of the furnace directly touches the surface of the metal leading to high burning loss and scale formation due to oxidation ultimately leading to material/ production loss. In addition, the atomic/grain structure of the metal is deteriorated by this process. Figure 2.7: Furnace oil fired batch type furnace The batch type re- heating furnace has several disadvantages which are highlighted below: Conventional Technology Material deterioration High energy consumption Low production rate Environmental and health Issues Ideal running of forging press Choking at blower suction end Base line specific energy consumption scenario: The table below summarizes the base line specific energy consumption figures of a typical furnace oil based batch type re-heating furnace:- 15

26 Table 2.3: Specific Fuel consumption of furnace oil based batch type re-heating furnace Parameter Unit Value Furnace oil consumption on re-heating furnace Ltr/hr 7.00 Productivity in terms of Kg kg/hour Specific energy consumption on FO based re-heating kg/kg 0.18 furnace Specific fuel consumption in terms of kcal kcal/kg B. Conventional lathe machines: Conventional machines are used in forging units for various component machining job work like turning, undercut, threading, threading etc. These machine runs on electrical motors having the capacity varying from 3 hp to 15 hp with production/ machining of pcs/day. Since these machines are manually operated, the process through which components are manufactured is very slow and time consuming. Apart from the slow process, the components manufactured are not very precise and of high quality. Sometimes the machine keeps on running even there is no component on the machine or the operator is busy in some other work. All these factors lead to the loss of energy and production of low quality components. Figure 2.8: Conventional lathe machine Since these lathe machines are manually operated, the process through which components are manufactured is very slow and time consuming. Apart from the slow process, the components manufactured are very precise and of high quality. It is often observed that the machine operate ideally (without any component loaded on to the machines) and the operator is busy in doing some other work/activity. All these factors lead to valuable resource; energy, manpower, time and money. In the Ludhiana & Jalander 80 to 90 % of the units are using conventional lathe machines. Base line specific energy consumption scenario: The table below summarizes the base line specific energy consumption figures of conventional turning machine:- Table 2.4: Specific power consumption of conventional type turning machine Parameter Unit Value Power consumed in conventional system (say 2 turning machine of 2 hp each and one threading machine of 1 hp) kw 2.98 Productivity on conventional turning machine Pcs/hr 50 Hourly productivity in terms of kg (assuming one piece of 2 kg) kg/kr 100 Specific power consumption on conventional machine kwh/kg

27 2.4.2 Ludhiana Batala Jalandhar Foundry (Casting) cluster The major energy consumption in a foundry unit is thermal energy that is for melting of raw material using blast cupola furnace & induction furnace around 80 to 90 % of energy used for this process rest 10 % for electrical energy A. Single Blast Copula Furnace The cupola furnace is a shaft melting furnace, it is filled with fuel (coke), metal charge (pig iron, circulation material, scrap steel) and slagforming additives (limestone) from the top. In the bottom part of the furnace, combustion air (blast) compacted by a blower is fed into the furnace shaft by nozzles. During this process, the counter flow principle is used to transfer heat from the combustion gases to the charge until it is melted. Thus, the required energy is generated in the cupola itself, i.e. without any transfer, and it is used at the site of generation. The quality of the fuel and the combustion process itself must be reproducible since all fluctuations have an impact on the melting process. Figure 2.9: Single Blast copula furnace Preparing the hearth bottom with layers of coke is the first step in the operation cycle of a Cupola. Wood is used for initial ignition to start the coke burning. Subsequently, air is introduced through the ports in the sides called tuyeres. Once the coke bed is ignited and of the required height, alternate layers of metal, flux and coke are added until the level reaches the charged doors. The metal charge would typically consist of pig iron, scrap steel and domestic returns. The air reacts chemically with the carbonaceous fuel thus producing heat of combustion. Soon after the blast is turned on, molten metal collects on the hearth bottom where it eventually tapped out into a waiting ladle or receiver. As the metal is melted and fuel consumed, additional charges are added to maintain a level at the charging door and provide a continuous supply of molten iron. Then charging is stopped but the air blast is maintained until all of the metal is melted and tapped off. The air is then turned off and the bottom doors opened allowing the residual charge material to be dumped. The Cupola furnace has several disadvantages which are highlighted below Incorrect blast rate Lower blast air pressure Incorrect distribution of air between the top and lower tuyeres Turbulent (non-linear) entry of air into the cupola Incorrect sizing of cupola parameters such as tuyere area, well depth, and stack height among others 17

28 Poor operating and maintenance practices Poor control of feed materials (shape, size, weight, sequence). Base line specific energy consumption scenario: The table below summarizes the base line specific energy consumption figures of a Cupola furnace Table 2.5: Specific Fuel consumption of coal based cupola furnace Parameter Unit Value Casting material tons/day 10 Coal Consumption tons/day 2.5 Specific fuel consumption of coal in cupola furnace t/t 0.25 B. Electric Induction Melting furnace Almost 350 units in Ludhiana Jalandhar Batala cluster uses electric induction furnace for melting of casting material. An induction furnace is an electrical furnace in which the heat is applied by induction heating of metal. Induction furnace capacities range from less than one kilogram to one hundred tonnes capacity and are used to melt iron and steel, copper, aluminum and precious metals. The advantage of the induction furnace is a clean, energy-efficient and well-controllable melting process compared to most other means of metal melting. Most modern foundries use this type of furnace, and now also more iron foundries are replacing cupolas with induction furnaces to melt cast iron, as the former emit lots of dust and other pollutants. Figure 2.10: Induction furnace An induction furnace consists of a nonconductive crucible holding the charge of metal to be melted, surrounded by a coil of copper wire. A powerful alternating current flows through the wire. The coil creates a rapidly reversing magnetic field that penetrates the metal. The magnetic field induces eddy currents, circular electric currents, inside the metal, by electromagnetic induction. The eddy currents, flowing through the electrical resistance of the bulk metal, heat it by Joule heating. In ferromagnetic materials like iron, the material may also be heated by magnetic hysteresis, the reversal of the molecular magnetic dipoles in the metal. Once melted, the eddy currents cause vigorous stirring of the melt, assuring good mixing. An advantage of induction heating is that the heat is generated within the furnace's charge itself rather than applied by a burning fuel or other external heat source, which can be important in applications where contamination is an issue. 18

29 Induction furnace has been the mode of steel and other metal melting for ages. With development, the furnace has also gone through changes, with more energy efficient versions available. These furnaces are manufactured in India by indigenous technology supplier. Only a handful number of such furnace suppliers exist who caters to the need of the induction furnace across various sectors, across the country. Base line specific energy consumption scenario: The table below summarizes the base line specific energy consumption figures in an electric melting furnace: Table 2.5: Specific Fuel consumption of electric induction furnace Parameter Unit Value Production capacity per day tons/day 8 Total energy consumption per day kwh/day 4800 Specific energy consumption in induction furnace kwh/t Validation of information of earlier BEE -SME Program The BEE SME Program was implemented in the Forging & Casting Cluster during the year DPR s were developed on energy efficient technologies on casting units namely Replacement of Single Blast Copula with Divided Blast Copula Replace Oil-fired Rotary furnace to Induction furnace Installation of APFC Providing insulation to the Cupola furnaces Use of Energy Efficient correct size motor Installation of Energy efficient lighting systems However, most of the DPRs are not relevant in the present scenario significantly due to the change in the price of fuel, better technologies available in market, implementation of some technologies by the units and cost benefit due to changed market scenario. Most of units in the cluster who are involved in special grade casting have replaced the conventional oil fired rotary furnace with induction furnace. Latest design of induction furnace has evolved in market in recent past, which is more energy efficient than the earlier version. However, detailed project report related to the same needs to be prepared. Similarly, divided blast cupola has already been adopted by most of the grey casting units. Fresh study needs to be conducted for possibility of further saving. Later in 2014, BEE-SME Program for Ludhiana forging cluster was been initiated. 20 units were enrolled under the project out of which 9 units successfully implemented the following two technologies: Induction Heater Special purpose machine 19

30 The energy saving potential in the cluster is huge as the BEE- SME program has only touched 1% of the total industries. Out of the 2000 active forging units in the cluster, the BEE-SME project has directly intervened only 20 units, out of which only 7 units have successfully implemented the technologies. However, a large section of units exist using conventional technology, which needs to adopt energy efficiency technology. The following observations were made pertaining to BEE SME program and present scenario: Lack of awareness about the EE technologies in the market. It was observed that instead of the BEE-SME program, most of the units are still not aware of the energy efficient technologies. A significant move in this regard has already been taken by BEE by conducting 5 numbers of dissemination workshops in the cluster. However, these workshops were attended by around 100 units which work out to be 5% of the total population. Thus, a lot more capacity building program and hand-holding needs to be conducted in the sector for large scale penetration of the technologies. Dynamic changes in fuel cost. It was observed that although the technology has been successfully demonstrated; the economics has been changing with varied price of furnace oil over the years. Cost-feasibility of these machines needs to recheck during the period of implementation. Lack of skill man power in operation of special purpose machines. Although many of the units are convinced about the technologies, the lack of skilled manpower in the cluster is a case of concern. So, it is important to consider capacity building exercise of the workers in addition to the technology implementation. Cost of equipment is too high. High capital investment required is a major barrier towards higher penetration of these EE technologies in the sector. In such case, capital subsidy or financial incentive may upscale the penetrations. Most of the units are running with partial process. All EE technologies are not applicable for all units. Under such conditions, individual energy audit or walkthrough audit is required. 2.6 Energy Saving Scope Technologies identified for Forging Industries The EE technologies that have significant scope for reducing the energy consumption and production costs in forging cluster are (I) Replacement of oil fired forging furnace with induction heaters, (II) Replacement of conventional machines with special purpose machine. These are explained below: A. Replacement of oil fired forging furnace with induction heater Induction heating is the process of heating an electrically conducting object by electromagnetic induction, where eddy currents are generated within the metal and resistance leads to Joule heating of the metal. So it is possible to heat a metal without direct contact and without open flames or other heat sources (like IR). An induction heater consists of an electromagnet (coil), through which a high-frequency alternating current (AC) is passed. The frequency of AC used depends on the object size, material 20

31 type, coupling (between the work coil and the object to be heated) and the penetration depth. An induction heating system is composed by an inductor (to generate the magnetic field) and a converter (to supply the inductor with a time-varying electrical current). Hot forging is a process where the part is heated above the material recrystallization temperature before forging, typically 1100 C (2012 F) for steel. Hot forging allows a part to be formed with less pressure, creating finished parts with reduced residual stress that are easier to machine or heat treat. Warm forging is forging a part below the recrystallization temperature, typically below 700 C (1292 F). As a superior alternative to furnace heating, induction heating provides faster, more efficient heat in forging applications. The process relies on electrical currents to produce heat within the part that remains confined to precisely targeted areas. High power density means extremely rapid heating, with exacting control over the heated area. Figure 2.11: Induction heater Recent advances in solid-state technology have made induction heating a remarkably simple and cost-effective heating method. Benefits of using Induction heating for forging are: Rapid heating for improved productivity and higher volumes Precise, even heating of all or only a portion of the part A clean, non-contact method of heating Safe and reliable instant on, instant off heating Cost-effective, reduces energy consumption compared to other heating methods Easy to integrate into production cells Reduced scaling Energy Saving Potential: The table below illustrates the saving potential of replacing furnace oil based re-heating furnace with Induction heater Table 2.6: Cost benefit analysis of Induction heater Parameter Unit Value Baseline scenario Furnace oil consumption on re-heating furnace ltr/hr 7.00 Hourly productivity on re-heating furnace kg/hr Specific energy consumption on FO based furnace kg/kg 0.18 Specific energy consumption in terms of kcal kcal/kg Cost of energy consumption Rs /kg

32 Parameter Unit Value Annual Production (based on baseline productivity) kg/annum Post Implementation Scenario Power consumed by induction heater kwh Hourly productivity on induction heater kg/hr Specific energy consumption on induction heater kwh/kg 0.43 Specific energy consumption in terms of kcal kcal/kg Cost of energy consumption Rs/kg 3.02 Annual Production (based on post implementation productivity) Savings kg/annum Reduction in cost of energy Rs/kg 1.60 Reduction in specific energy consumption kcal/kg Annual cost savings (based on post implementation Rs/annum productivity) Annual energy savings (based on post implementation kcal/annum productivity) Annual energy savings (in terms of toe) toe/annum Annual energy savings (in terms of TJ) TJ/annum 0.91 Investment for 50 kw induction heater Rs Simple Pay-back years 2.93 Annual GHG emission savings tco2/annum * Emission factor of furnace oil taken from IPCC guideline as 77.8 tco2/tj S. No No. of units in the cluster Based on the scoping study and survey the tentative implementation scenario and the replication potential for this particular technology are tabulated below: Table 2.7: Replication potential of Induction heater technology No. of units using forging furnaces Percentag e of units who has converted to Induction Heater (%) Potential units for replication Annual energy savings potential from a typical forging unit (toe/year)* Annual GHG emission saving potential from a typical forging unit (tco2/annum) Overall energy saving potential from the cluster (toe / year) Annual GHG emission saving potential from the cluster (tco2/annum *Refer Table 2.5 above B. Special Purpose Machine A Special Purpose Machine (SPM) is a kind of multi-tasking machine used for machining purpose. A special purpose machine is used as a replacement to conventional machines like lathe, drilling or trimming machine. A special purpose machine is designed based on the customized requirement of a unit and may be used for one or multiple task as per the design. For example, a conventional lathe machine takes 3 mins (say) to machine (turn) a metal piece. Thereafter it is transferred to another machine for facing and ) 22

33 trimming operations. In some cases, a third machine is used for threading operations. A special purpose machine specifically designed can replace all the three machines with a single machine. The replaced special purpose machine can perform all the four activities i.e. turning, facing, trimming, and threading on sequential manner. The sequence of operation is pre-set using timers and sensors. The entire operation is maintained using pneumatic and mechanical control. For ease of operation, each special purpose machine is equipped with an automatic feeder. Replacement of conventional machines with special purpose machines usually increases machine productivity by 5 times, easing the life of the operators by avoiding manual intervention during each operation. Since, a number of conventional machines is replaced with a special purpose machine, the total electrical power of the equipment reduces, this making it energy efficient. Figure 2.12: Special Purpose Machine A special purpose machine (SPM) is usually customized based on the specific requirement of a unit. A SPM is used for multi-task operation, which are typically performed in more than one conventional machine. The sequence of operation in a SPM is pre-set using timers and sensors. Usually, a SPM is equipped with two or more machine tools fitted in different axis. The operations are carried out in sequential manner. The axial motion of the machine tool is usually powered by pneumatic controls, whereas positioning of the tool is done using sensors. A particular operation e.g. turning operation in a metal piece of 400 mm is pre-set using timers. Once the operation is over, the sensor directs the next sequence of operations, which are also pre-fed programs in the machine. Thus, manual intervention in each operation can be prevented. Also, two or more operational can be performed simultaneously in a SPM. Similar is the case for SPM-drilling machine, where the time taken in conventional drilling machine which performs one drilling operation at a time, can be significant reduced by simultaneously performing two or more drilling operations at a time. Energy Savings Potential: The table below illustrates the saving potential of converting conventional turning machine with Special purpose machine. Table 2.8: Cost benefit analysis of Special purpose machine Parameter Unit Value Baseline scenario Power consumed in conventional system (say 2 turning machine of 2 hp each and one threading machine of 1 hp) Assuming the motors are running on 80% loading kw

34 Parameter Unit Value Hourly productivity on conventional machine in terms of pcs Hourly productivity in terms of kg (assuming one piece of 2 kg) pcs/hr kg/hr Specific energy consumption in terms of kwh/kg kwh/kg 0.03 Cost of energy consumption Rs /kg 0.21 Annual Production (based on baseline productivity) Post Implementation Scenario Power consumed by special purpose machine (one spm of 3 hp replaces three conventional machines; runs at 80% loading) kg/annum kw 1.79 Hourly productivity on spm machine in terms of nos. of pcs. pcs/hr Hourly productivity in terms of kg (assuming one piece of 2 kg) kg/hr Specific energy consumption in terms of kwh/kg KWh/kg Cost of energy consumption Rs/kg 0.04 Annual Production (based on post implementation productivity) Savings kg/annum Reduction in cost of energy Rs/kg 0.17 Reduction in specific energy consumption kwh/kg Annual cost savings (based on post implementation productivity) Annual energy savings (based on post implementation productivity) Rs/annum kcal/annum Annual energy savings (in terms of toe) toe/annum 1.48 Annual energy savings (in terms of MWh) MWh/annum Investment for SPM turning machine Rs Simple Pay-back years 4.41 Annual GHG emission savings tco2/annum *Emission factor of electricity taken as per IPCC guideline as 0.9 tco2/mwh. Based on the scoping study and survey the tentative implementation scenario and the replication potential for this particular technology are tabulated below: 24

35 Table 2.9: Replication potential of Special purpose machine S.No No. of No. of Percentage Potential Annual Annual Overall Annual units in units of units units energy GHG energy GHG the using who has for savings emission saving emission cluster forging converted replication potential saving potential saving (No.) furnaces (No.) to Induction Heater (%) (No.) from a typical forging potential from a typical from the cluster (toe / potential from the cluster unit forging unit year) (tco2/annu (toe/year)* (tco2/annu m) m) *Refer Table Technologies developed for Casting Industries The EE technologies that have significant scope for reducing the energy consumption and production costs in casting cluster are (I) Replacement of oil fired forging furnace with induction heaters, (II) Replacement of conventional machines with special purpose machine. These are explained below: A. Replacement of single blast cupola with divided blast furnace Poorly designed cupolas lead to high consumption of coke resulting in increased input costs of melting. A divided blast cupola (DBC) reduces carbon monoxide (CO) formation by introducing a secondary air blast at the level of the reduction zone. Thus the DBC has two rows of tuyeres with the upper row located at around 1m above lower row. Dividing the blast air has benefits in terms of energy savings. However, to realize the full benefits of energy efficiency, optimal design of the divided blast system is crucial. The coke consumption in the DBC is reduced by almost 35%. It increases tapping temperature by about 50 0 C and the melting rate is also increased. Figure 2.13: Divided blast furnace Benefits of Divided Blast Cupola Optimum blower specifications (quantity and pressure) Optimum ratio of the air delivered to the top and bottom tuyeres Minimum pressure drop and turbulence of the combustion air Separate wind-belts for top and bottom tuyeres Correct tuyere area, number of tuyeres, and distance between the two rows of tuyeres 25

36 Optimum well capacity Higher stack height Mechanical charging system Stringent material specifications Energy Saving Potential: The table below illustrates the saving potential of converting conventional cupola with divided blast Cupola furnace Table 2.10: Cost benefit analysis of divided blast cupola furnace Parameter Unit Value Casting material tons/day Coal consumption for 8 hour operation using tons/day conventional Cupola furnace 2.50 Specific fuel consumption using conventional Cupola t/t furnace 0.25 Coal consumption for 8 hour operation using Divided tons/day blast Cupola furnace 2.00 Specific fuel consumption using Divided blast Cupola t/t furnace 0.20 Savings after Implementation of DBC/ ton of molten t/t material 0.05 Monetary Savings Rs/ton of molten metal Rs/t Rejection of material In Conventional Cupola for 8 hour tons/day operation 0.70 Rejection of material In Divided Blast Copula for 8 hour tons/day operation 0.50 Savings of material after implementation of DBC for 8 tons/day hour operation 0.20 Monetary Savings Rs/ton of molten metal Rs/t Total monetary savings per tonne Rs/t Annual production t/y Annual monetary savings Rs in lakhs 1.98 Investment for Divide blast furnace Rs in lakhs 6.00 Payback period years 3.04 Annual GHG emission savings tco2/annum Annual energy savings toe/ annum 4.50 * Emission factor for coal considered as tco2/annum Based on the scoping study and survey the tentative implementation scenario and the replication potential for this particular technology are tabulated below: 26

37 Table 2.11: Replication potential of divided blast cupola Sl.No No.of units in the cluster No. of units using cupola Percentage of units who has converted to divided blast cupola (%) Potential units for replication Annual energy savings potential from a typical casting unit (toe/year)* Annual GHG emission saving potential from a typcial casting unit (tco2/annum) Overall energy saving potential from the cluster (toe / year) Annual GHG emission saving potential from the cluster (tco2/annum) *Refer energy saving calculations for the particular technology B. Replacement of conventional Induction furnace with IGBT based induction furnace An induction furnace consists of a nonconductive crucible holding the charge of metal to be melted, surrounded by a coil of copper wire. A powerful alternating current flows through the wire. The coil creates a rapidly reversing magnetic field that penetrates the metal. The magnetic field induces eddy currents, circular electric currents, inside the metal, by electromagnetic induction. The eddy currents, flowing through the electrical resistance of the bulk metal, heat it by Joule heating. The inverter based power supply is an important factor for the operation of the induction furnace. More power can be fed into the induction furnace by increasing the frequency. With increased power, the melting can be fast thus leading to reduction in specific power consumption. With the development of insulated-gate bipolar transistor (IGBT) based invertor, operating the furnace with higher frequency is possible. The hybrid invertor design has advantages of both parallel and series invertor and utilizes IGBT s capabilities to better control inverter. The power conversion efficiency of these technologies is good compared to the earlier thyristor based control. Also the power factor is maintained at a good level at any load. In IGBT based equipment the major benefit is of power factor which is 0.98 during complete melting also sintering cycle. Also less input KVA required running the same equipment which means we will get the same liquid metal with lesser input KVA. Figure 2.14: Induction furnace Limitation: Replacement of Thyristor based induction furnace with IGBT based induction furnace requires huge capital investment. For e.g. a 350 kw / 500 x 2 IGBT based induction furnace would cost around Rs 50 lakhs including auxiliaries. In such case, it is not feasible to replace existing induction furnace with IGBT based induction furnace. However, in those scenario, where the unit wants to increase their productivity and go on for a new furnace, IGBT based induction furnace is the most suitable solution. 27