PRE-FEASIBILITY REPORT OF M/s ILC IRON & STEEL PVT.LTD

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1 PRE-FEASIBILITY REPORT OF M/s ILC IRON & STEEL PVT.LTD 1. Introduction of the project M/s ILC Iron &Steel Pvt.Ltd is incorporated by a team of directors namely Sri K. Somasekhar and Sri K. Chandrasekhar. At present industry is operating in 48Acres 36 Guntas comprising Sy.No.15, 16, 17 & 29 out of 95 Acres. As promoters felt the need to increase the production capacity, they have acquired 7Acres34Guntas comprising SY.No.17, 36, 37, 38 and 51. Now, total area of the industry increased to 102 Acres34Guntas. Earlier the company has taken EC from MoEF & CC, New Delhi and Consent to operate from Karnataka State Pollution Control Board. The unit is located between Kunikera Tanda and Kunikera Village, Kopppal Dist, Karnataka State. 2. Need of the project As per the IBEF, India was the world s third-largest steel producer in The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and costeffective labour. Consequently, the steel sector has been a major contributor to India s manufacturing output.the Indian steel industry is very modern with state-of-the-art steel mills with sustained technological developments. It has always strived for continuous modernization and up-gradation of older plants and higher energy efficiency levels.india s crude steel and finished steel production increased to MT and MT in , respectively. In , the country s finished steel exports increased 17 per cent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT in Exports and imports of finished steel stood at 0.99 MT and 1.22 MT, during Apr-May 2018.India is expected to overtake Japan to become the world's second largest steel producer soon and has envisaged achieving 300 MT of annual steel production capacity by 2030.Steel consumption is expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.India is expected to become the second largest steel producer in the world by the end of Source: (Secondary Information): India Brand Equity Foundation Industry s sales graph is on the rise. Based on the above data and an increase in sales, investors propose to enhance the capacity. 3. Project Description 3.1 Project details Sl.No Description I Name of the project II Location Sy.No Village Area District State Details ILC Iron & Steel Pvt.Ltd 15, 16, 17, 29, 36,37,38,51 Kunikera Private land 102Acres and 34 Guntas Koppal Karnataka 1

2 III Present Land use pattern of the industry Total Land area Built-up area Production Block Storage yard ETP Others Roads Green Belt Open Area Acres Project site selection Promoters are very conscious to the nature. Initially, after identifying the area, they have studied for reserve forests, monuments, heritage buildings and wild life sanctuary. After confirming that there are no endangered, threatened or rare plant species near the plant site or within the 25 kms radius of the industrial estate that need to be conserved, promoters have established the industry at the location mentioned above. Now, adjoining to the existing industry, investorshave acquired the land and intent to enhance the size as well as production capacity. 2

3 Fig.1: Topographical map of the Area ILC Iron & Steel Pvt.Ltd 3

4 Fig.2: General Location ILC Iron & Steel Pvt.Ltd 4

5 Fig.3: Site Layout 5

6 3.3 List of Products Below table depicts the present and proposed production quantities I. Products Product Name Consented Quantity TPD Rolling Mill ( Bar, Rod,Structural and Allied products of iron ) MTPA ISP Pellet plant Tools for the above products production Name of the tool Sponge Iron unit Induction Melting Furnaces and /or Electric Arc Furnaces for steel making of 25 Tons Capacity each Induction Melting Furnaces/ Electric Arc Furnaces for steel making Billet Casters for Casting liquid steel into billets Proposed Quantity TPD MTPA ISP 4000 (1.2 MTPA) Total TPD MTPA ISP 4000 (1.2 MTPA) Existing Capacity 4Kilns of 150 TPD 0.2 MTPA Proposed Capacity 1Kiln of 350 TPD 0.4 MTPA 25 Tons 4 Nos 40 Tons 5 Nos 25T-4 and 40T-5 1 CCM (3 2 CCMs ( 5 Strands) Strands) 1 CCM (2 Strands) Ladle refining furnace (LRF)for secondary refining AOD 25T-1No 40T-1No T-1No Total capacity 950 TPD 0.6 MTPA 25T&40T 1 each 40T-1No TPD - Tons per Day, MTPA Million Tons per Annum II. CAPTIVE POWER GENERATION PLANT Source WHRB/FBC 3.4 Consented MWH Proposed MWH Total MWH 30 Raw materials requirement Required raw materials like iron ore, Dolomite and Bentonite are available locally. Coal is imported. 6

7 3.5 Brief Manufacturing process Sponge Iron Iron ore undergoes reduction reaction with Coal in rotary kiln.once reaction is complete, sponge iron is collected. Flow chart Emissions to Captive power system Iron ore/pellet Dolamite Coal Rotary Kiln Coal Char By-Product Magnet Spnge Iron Pellets Iron ore fines taken after beneficiation is subjected to grinding in ball mill. It is mixed with Bentonite and water. Finally the mixer is passed through rotary kiln and after cooling, it is collected as nodules. Flow chart Iron Bentonite Water Ball Mill Mixer Pellets 3.6 Resource Re-Cycling Optimizing /Re-cycling Coal-Char is the by-product. Other by-product is a mixture of Sulphurdioxide, oxides of Nitrogen and Carbon monoxide. These are used for captive power generation. 7

8 3.7 Water requirement At present industry is consuming 1,00,000 Liters per day. Further industry requires additional 2, 00,000 Liters per day.total water requirement will be 3,00,000 Liters. The water needs for the industry will be met from natural rain water harvesting and bore wells. 3.8 Power requirement The total power requirement for the plant after expansion is 30 MW and will met from in-house generation. Any exigency shall be met with the local state government 220KV feeders. 4. Site Analysis At present industry is in operation. Capacity enhancement if approved will take place within the site.the area is well away from sensitive sites such as National parks, Wild life sanctuaries, biosphere reserves, defense installations and religious places. Temperatures in and around the site during day time is 410C and during night times it is 240C in summer. During monsoon it will be between 300C and 220C and in winter it will varies between 300C during day time and 100C in the night. Relative humidity is between 60% and 65%. Nearly 67% annual rainfall is between June and September. A few showers will be received during the October. Maximum average rainfall is 470mm in the area during monsoon period. Secondary source 5. Brief Planning Industry proposes to increase the production capacity by installing few additional tools. It continues to work in shifts round the clock. Transportation of workers is a not a concern. Industry has engaged private operators for the purpose Proposed combined land use pattern Sl.No I II III IV V Description Total Land area Built-up area Production Block Storage yard ETP Others Green Belt Roads Open Area Acres

9 5.2. Rehabilitation and Resettlement Since the industry is in operation and expansion is adjacent to and within the adjoining land R& R is not required. By providing direct and indirect employment to the locals and also by facilitating the villages by conducting various developmental programs in a phased manner in association with local bodies, Koppal district will develop socio-economically more. 5.3 Post project monitoring The industry has defined environmental monitoring program to monitor the Ambient Air Quality as well as Stack Emissions. Industry has installed online monitoring system. The industry has engaged the third party laboratory for monitoring air quality periodically and reports are being submitted regularly to KSPCB. Compliance report on EC taken is being submitted every six months to regional office of MoEF & CC. So far no abnormalities are observed. If abnormality is observed after expansion, corrective measures will be taken immediately. 6. Greenbelt development 6.1 Objective Industry has an excellent developed green belt. It is a continuous process.it will continue to improve the green belt where ever possible in addition to the existing greenery. 6.2 Plant species for green belt. A wide range of plant species are grown in the industry site. This wide range covered plants of Fast growing type Thick canopy cover Perennial green nature Native origin 6.3 Design of Green Belt As far possible the following guidelines will be considered in newly acquired sitefor green belt development. Shrub and trees will be planted in encircling rows around the outer three rows (away from planted side) The short trees (<10 m height) will be planted in the first two rows (towards plant side) of the green belt. The tall trees (>10 m height) will be planted in the outer three rows (away from plant side). Planting of trees in each row will be in staggered orientation. In the front row, shrubs consisting of Callistemon, Prosodies etc., Will be grown. Since the trunks of the tall trees are generally devoid of foliage, it will be useful to have shrubs in the fronts of the trees so as give coverage to this portion. The spacing between the trees will be maintained slightly less than the normal spaces 9

10 7. Recycle of waste generation The possible sources of waste generated for recycle is water. It is being recycled. 8. Environment management cell The unit will provide upgraded Environment Management cell as below: 8.1 Environment Management Cell The Environment Management Cell consists as given below Manager Process in charge from production In charge Maintenance Department In charge Operation ETP, Air Pollution Control Division, Solid waste management 9. Handling of raw materials and finished materials The raw materials like Iron ore, Dolomite and coal are stored under covered shed.these raw materials are transferred to production block by conveyer. Bentonite is received in bags and preserved 10. Project schedule and cost estimates Once industry gets Environmental Clearance and Consent to establish for enhanced capacity, it will start construction activity. Later it will obtain Consent to Operate from State Pollution Control to start the commercial activity. At present it will continue to produce consented products. Industry is expecting to get the clearances from regulatory bodies by April Industry will incur an estimated additional investment of Rs 300Crore. Total project cost will increase to Rs.621 Crore. Industry has allocated an amount of about Rs Lacs for Environmental Protection measures including green belt development. 10