For. Capacity [in Tons/ Year] Existing Proposed total Induction Furnace with CCM = Automatic Rolling Mill =

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1 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR For Steel Division Unit Capacity [in Tons/ Year] Existing Proposed total Induction Furnace with CCM = Automatic Rolling Mill = (STEEL DIVISION). Vrindavan, Near IDBI Bank, Civil Lines, RAIPUR [C.G.]

2 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR C O N T E N T S SECTION 1 EXECUTIVE SUMMARY SECTION 2 INTRODUCTION SECTION 3 SALIENT FEATURES OF THE SITE SECTION 4 PROCESS FLOW CHART SECTION 5 MANUFACTURING PROCESS SECTION 6 ENVIRONMENTAL ASPECTS SECTION 7 PROJECT SCHEDULE AND IMPLEMENTATION SECTION 8 ESTIMATE OF PROJECT COST

3 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 1 EXECUTIVE SUMMARY

4 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR EXECUTIVE SUMMARY Project : Induction Furnace with Billet Caster (CCM) and Hot Rolling Mill Plant location : Vill. Borjhara, P.O. Urla, Raipur, Chhattisgarh Promoters : Real Ispat & Power Ltd. Installed Capacity : Unit Capacity [in Tons/ Year] Existing Proposed total Induction Furnace with CCM = Automatic Rolling Mill = Nos. of Working Day: 300 Days Project Cost : Induction Furnace with CCM - Rs Crores. Rolling Mill - Rs Crores. Raw Materials : Induction Furnace - 80% Sponge Iron - 2,48,000 TPA 15% Pig Iron - 46,500 TPA 5% Scrap - 15,500 TPA Billet Caster (CCM) - Hot Metal produced from IFD - 3 LTPA Re-heating Furnace of Rolling Mill (Dual Fuel Mode) Coal for Producer Gas Furnace Oil - 14,400 TPA or - 7,000 KLPA

5 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR Rolling Mill - Ingots/Billets produced from CCM - 3 LTPA Product : Induction Furnace - Hot Metal CCM - Ingots/Billets Rolling Mill - Rolled & Structural Steel Water Requirement : 125 M 3 / Day mainly for Cooling purpose Data Source : Plant details from RIPL, Technical data from Consultant s data bank and budgetary offers received from vendors.

6 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 2 INTRODUCTION

7 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR INTRODUCTION 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 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. Chhattisgarh is reach in respect of minerals which is evident from Iron Ore Mines existing in Dalli Rajhara in Durg District and Baildadila in Bastar District. Bhilai Steel Plant located in Bhilai, nearly 30 km away from Raipur is a major public sector undertaking which exploits the iron ore deposits of these mines. Hense, the Iron products like Iron Ore, Pig Iron, Billets, Ingots, Blooms are available at lower transportation cost in Raipur. There are many mini steel plant and Rolling Mills in this area consuming these items as raw material for producing steels. Demand for formation of Chhattisgarh State has revived after induction of new Central Government and sooner or later it will be accomplished. With the formation of Chhattisgarh as new state, Raipur will be designated as the capital of this new state. This will create huge demand for steel and cement to develop infrastructure required for the purpose of capital of a newly formed state. This demand will further increase the gap between demand and supply of steel.

8 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR Project Proponent : Real Ispat & Power Ltd, hereinafter called The Company is a new company incorporated in 04/10/1999 vide registration no of At present, the company having 1 LTPA capacity Induction Furnace with CCM and Rolling Mills. To captive utilization of 1.5 LTPA Sponge Iron production of group company at Borjhara, Urla, Raipur, it is proposed to installed 3 LTPA capacity Induction for producing quality Billets mainly for internal use and automatic Rolling Mill with an installed capacity of 3 LTPA of finished rolled/ structural product at existing factory premises at Borjhara, Urla Bendri Road, Raipur. The Directors of the company are : 01. Mr. Umesh Agrawal 02. Mr. Shiv Agrawal 03. Mr. Basant Agrawal 04. Mr. Ritesh Jindal They are promoter directors of the company and belong to reputed family from Raipur as well as also techno-commercially qualified entrepreneurs backed up by 20 years of steel trading experience and production of steel for the last 5 years. They are enjoying good reputation. The promoters have funds which they want to invest in expansion of industry. After surveying the industrial market they have decided to install Induction Furnace with CCM and Automatic Rolling Mill to avail the benefits of raw material availability, captive power, land, labour and ready market. The manufacturing process is tested and can be managed by the promoters successfully. The proposed unit shall mainly manufacture Billets and Bars which has very potential market all over India. Employment Generation 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 90 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.

9 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 3 SALIENT FEATURES OF THE SITE

10 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SALIENT FEATURES OF THE SITE SITE LOCATION The proposed Steel Division of Real Ispat & Power Ltd, will be located at Borjhara Industrial Area, Raipur in Chhattisgarh state. The project location is well connected by road and rail. The nearest railway station is Raipur, which is at a distance of 12 km from the site. The nearest airport is Raipur and seaport is Visakhapatnam. METEOROLOGICAL DATA. Maximum dry bulb temperature : 50 Deg C Minimum dry bulb temperature : 16 Deg C Design dry bulb temperature : 35 Deg C Design wet bulb temperature : 28 Deg C Max. Relative Humidity : 85% Min. Relative Humidity : 50% Design Relative Humidity : 65% WIND AND SEISMIC DATA Basic wind speed : As per IS 875 Seismic zone : Zone 1 As per IS 1893 SOIL CLASSIFICATION The soils in the area are generally of clayey loan types with sandy loan soil in some areas. The soils have been classified as Ustocherpts/ Ustorthents/ Rhodustalfs/ Haplustalfs/ Haplusterts, as per pedological taxonomy. EXISTING INFRASTRUCTURE All required infrastructure is prevailing in the site.

11 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR DETAILS OF ALTERNATE SITE CONSIDERD : 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. CLIMATIC DATA FROM SECONDARY SOURCES : The climatic condition of this area is semi arid. The maximum temperature goes up to 40 o C during summer and the minimum temperature goes down to 8 o C 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 direction followed by NW direction. LAND REQUIREMENT : The total plant area is Acres in which Acres utilized for existing setup, Acres utilized for development of Green Belt area, 7 Acres for proposed expansion of steel division Acres are open space. The land area required for expansion of the Steel Division is around 7 acres. This includes the area for Induction Furnaces, Continuous Casting Machine, Rolling Mill, storage, fuel & and raw water storage. WATER REQUIREMENT AND SOURCES : The Steel & Rolling Mill Division will require about 125 m³/day of water. It is proposed to pump the required quantity of water from the River. It will be supplemented by Industrial water supply.

12 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 4 PROCESS FLOW CHART

13 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR PROCESS FLOW CHART OF INDUCTION FURNACE WITH CCM AND ROLLING MILL Raw Material Bay EOT Crane for Material Lifting Charging in the Furnace Addition of Ferro Alloys Slag Removal from Furnace Melting Temp. in the Furnace Induction Furnace Tapping Molten Metal in Ladle EOT Crane for Ladle Shifting Hot Metal Pouring in Billet Caster Billet Casting CCM Dispatch to Rolling Mill EOT Crane for Billet Lifting Billet Shearing Machine Reheating Furnace Rolling Mill Cooling Bed Final Rolling Srand Roughing Mill Stand Finished Product Yard

14 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 5 MANUFACTURING PROCESS

15 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR MANUFACTURING PROCESS INDUCTION FURNACE WITH CCM The Induction Furnace proposes to produce of Hot Metal and CCM manufacture of Billets. However, the manufacturing process for Billets is given below as the process involve is similar. First of all, raw material i.e. Sponge Iron, Pig Iron and Scrap in the composition of 80% mix of Sponge Iron + 15% mix of Pig Iron and 5% mix of Scrap will be charged on the bottom of the crucible and the power is on. It starts drawing power and liquid metal is made. Simultaneously deslag is done through out. Through out the process it is advisable to run the Furnace at full KW load. After final de-slaging, the metal sample is taken out and sent to Laboratory for analysis. Temperture is raised to C. Then the weighed quantity of FeSi, SiMn and Al, are added which is responsible for the final chemical analysis of steel. Then the Furnace is lifted with the help of Hydraulic Power Pack. Metal starts pouring to Hot Metal Ladle. Once the entire metal are poured, the ladle will moved out by EOT Cranes and fitted at Billet Caster Pouring stand for repoured on Continuous Casting Machine. Continuous Casting is the process whereby molten steel is solidified into a Semi Finished Billet, Bloom or Slab for subsequent rolling in the finishing mill. Prior to the introduction of Continuous Casting in the 1950s, steel was poured into stationary molds to form Ingots. Since then, Continuous Casting has evolved to achieve improved yield, quality, productivity and cost efficiency. Steel from the Furnace is tapped into a ladle and taken to the CCM. The ladle is raised onto a turret that rotates the ladle into the casting position above the tundish. Liquid steel flows out of the ladle into the tundish and then into a water cooled copper mold. Solidification begins in the mold, and continues through the first zone and strand guide. The cutting Torch cut the product at specified size during rolling out then discharged for intermediate storage or hot charged for finished rolling. ROLLING MILL

16 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR The mill consists of the following : a. Reheating Furnace b. Roughing Mill c. Intermediate Mill d. Finishing Mill e. Finishing Section f. Auxiliary Equipments and a. Reheating Furnace The Reheating Furnace will be of the Dual Fuel Mode (Producer Gas/ Furnace Oil) fired pusher type. The design of the same has been made keeping with the latest furnace technology of minimize heat losses optimize fuel consumption as well as reduce the pollution. The inside dimensions of the furnae will be 2 mtr. Breadth and 17 mtrs. In length with fire-wool blanket being used as additional insulation material. The furnace will have heating capacity of 15 tons per hour. The heat loss is expected to be around 0.3 percent. Gasifier adopts combination of intermediate cooling and air cooling methodology to save energy and protect environment. Recuperator recovers sensible heat of gas, generating steam for tracing purging of gasification, poking hole operation, saves energy and reduces temperature of gas Intermediate cooler use circulating cold water, to cool the gas to specified value Air cooler adopts natural air indirect cooling mode, thus avoiding waste of sources Gas and Water in Recuperator and intermediate cooler does not contact directly

17 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR GASIFIER DIAGRAM b. Roughing Mill The Roughing Mill comprise of the series of reduction stands in a rolling mill. In this mill, the roughing mill accepts the raw materials at the cross sectional size. It will have 3 strands of pinion center distance 350mm dia. The stands will be driven by 800 HP Motors with speed of 720 RPM. On repeated passes through the roughing stands the raw material will be reduced to cross sectional area. c. Intermediate Mill The Intermediate Mill is the second stage in the Rolling Mill. Materials are received into the Intermediate Mill automatically from the Roughing Mill. The Intermediate Mill will consist of 6 stands and will be driven by another 600 HP

18 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR Motor with speed of 720 RPM. The cross sectional area will be further reduced by 45-55% in this mill. As the cross sectional area decreases, the lenth of the piece of raw material will increase. To adjust the length to the speed of the mill, the Intermediate Mill will also be equipped with a speed increaser between the 4 th and the 5 th stands. d. Finishing Mill The Finishing Mill will give the end-size to the product. In this case, the finishing mill consists of a section of mill stands and spindles, repeaters etc. The Finishing Mill consists of two mill stands driven by 400 HP Motors with speed of 960 RPM. In the Finishing Mill, the reduction in section diameter will be of final thickness. e. Finishing Section The Finishing Section will consist cooling conveyors, cooling blowers, cooling bed and a set of twisting machines to produce CTD Bars. f. Auxiliary Equipment Auxiliary equipments are supportive to the plant and machineries. These shall consist of compressor unit, furnace oil tank with pump, guide boxes etc. For the both Division i.e. Induction Furnace with CCM and Rolling Mill following additional facilities is also essential : Work Shop Work Shop is an essential part of any industrial unit where regular repair and maintenance of machines and accessories are carried. Break down and normal

19 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR wear and liar of spare parts are inevitable and these are to be repaired without any loss of time on spot. To facilitate the company shall have fully equipped work shop consisting of Lathe, Drill, Shaper, Grinder, Welding, Gas Cutter etc. Inspection/ Quality Control The products are tested for its quality in testing laboratory to ensure best quality of output. The testing laboratory is full equipped with latest testing equipment etc.

20 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 6 ENVIRONMENTAL ASPECTS

21 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR GENERAL : ENVIRONMENTAL ASPECTS The proposed Steel and Rolling Mill Division will be located within the premises of Steel Division. Whose operation will be governed on the basis of non-polluting systems.. In our proposed Induction Furnace with CCM and Rolling Mill units, any type of generation of particulate matter will not be there because : a) Induction Furnace with CCM will be electrically operated. b) Rolling Mill will be Furnace oil/ producer gas fired operated. We are committed to trap all the dust and suspended particulate matter (SPM) in the flue gas to achieve concentration level below the permissible limit as per the Pollution control board norms. In this regards, we are following the basic norms establish by CPCB /CECB. Thus, generation of additional PM will not be there. In nut shell, the premises will have no additional burden of any type of PM. INDUCTION FURNACE UNIT : The induction furnace process on which melting is an open house process therefore, there is least chance of Air pollution. Regarding Air pollution devices, the company shall install such process, which is in slightly negative pressure, which sucks all the gases librated from the Furnaces. For this, Real Ispat will deploy a movable type of Suction hood that collects the dust laden flue gases generated from the Furnaces. This suction hood leads to cyclone separator, in which heavier particles settled down. After this the gases are passed through Bag Filter. After Bag Filter Clean gases will be vented to the ambient air by means of Stack having height of 30 meters. ROLLING MILL UNIT : As the fuel to be use in Re-heating furnace of rolling mill unit will be Furnace Oil which is termed as Clean fuel and there is least environmental pollution load by the burning of the fuel. Hence Real Ispat propose no pollution control equipment for the propose rolling mill.

22 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SO 2 EMISSIONS Since the Sulphur contents of all the contributing raw materials are 0.04% max. However, the stack height erected by us follow the CPCB/CECB conditions. EFFLUENT FROM WATER TREATMENT PLANT The existing principal of waste water treatment is installed by us. However, in the proposed project plan none of the waste water generation source will be there. Thus, generation of additional effluent will not be there. The water drained from the water treatment plant, will have to be treated so that the water let out is neutral (ph ). To achieve this the water drained from water treatment plant is pumped to a neutralisaion pit. The neutralisation pit will have acid resistant brick lining. Depending on the quality of water collected in the pit, either an alkaline medium or acidic medium will be pumped into the pit to neutralise the water. SEWAGE FROM THE STEEL & ROLLING MILL DIVISION BUILDINGS The sewage from the Steel & Rolling Mill buildings will be taken to a common septic tank through trenches. The sewage from the septic tank will be disposed off through soak pit/concrete dispersion trenches. As the sewage is taken in trenches the soil will not get contaminated. NOISE POLLUTION: The noise level in the plant has to be maintained as per OSHA standards by installing silencers, sound proof walls etc. GENERATION AND DISPOSAL OF SOLID WASTES : 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.

23 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR End Cutting and Mill Scale will be generates from the Rolling Mill. Among which End Cuttings will be utilized as raw material in our own Induction Furnace unit; while Mill Scales will be sold to Ferro Alloys manufacturing unit or steel casting unit.

24 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 7 PROJECT SCHEDULE AND IMPLEMENTATION

25 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR PROJECT SCHEDULE AND IMPLEMENTATION PROJECT SCHEDULE Project completion period has a significant influence on the overall project cost as the long project schedule results in increased cost on interest during construction. Hence, optimum project completion schedule has to be adopted along with effective project implementation plan to ensure completion of project in time. For this project, the project completion schedule considered is 06 months from the date of financial closure. The project schedule includes the various activities like civil works, detailed engineering, procurement, erection and commissioning of the project. The project will be implemented on two phases. In first phase, Induction Furnace with CCM will be introduced and after achieving full production capacity, in second phase, Automatic Rolling Mill will implemented. Review meeting with the various suppliers and the owners will be held frequently for effective completion of the project with in the schedule. Corrective action will be initiated. Wherever it is felt necessary. A full-fledged project team will be appointed by the owners comprising engineers of various disciplines, administrative and finance personnel to deal with the dayto-day activities. Project consultants will assist the project team for the successful completion of the project in time.

26 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR CONSTRUCTION MANAGEMENT Preliminary Works Soil investigation study has to be carried out to obtain the details of soil profile, sub surface condition and soil bearing capacity. Depending on the soil investigation report, suitable type of foundation has to be planned for the various structures and equipment. Construction Office & Stores Temporary office shall be constructed to accommodate the construction personnel inside the plant boundary. This shall be a single storied building with load bearing brick wall and A.C sheet roofing. A covered storage of adequate area shall be needed for the temporary storage of raw materials and equipment. Construction Water The water requirement for the construction purpose shall be drawn from the existing facilities available in the plant i.e. water pond etc. The water shall be pumped to a masonry tank and the construction water shall be supplied at different places with the help of pumps. Construction Power Construction power shall be made available from the captive power plant. Alternatively DG sets shall also be used to meet construction power requirement. Construction Equipment Construction equipment like Bull dozer, Road roller, Truck mounted cranes, Tractors, Pumps, Air compressors, DG sets, Welding equipments shall be made available at the site.

27 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR Sufficient number of vehicles like Cars, Jeeps shall also be deployed at the site for manpower mobilization. Construction Manpower A Construction Manager with adequate people from different disciplines like Civil, Mechanical, Electrical, Instrumentation and Administration shall be looking after day to day execution of the project at site.

28 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR SECTION 8 ESTIMATE OF PROJECT COST

29 // SERVER/ BISWAS/ RIPL/ STEEL/ RIPL-SD-DPR ESTIMATE OF PROJECT COST The cost of the Induction Furnace with CCM and Automatic Rolling Mill project is estimated on the basis of the prevailing prices and rates and the estimation is for, the installation of Hot Metal & Billet Production and Rolling facilities described in the earlier sections. The estimate is derived by dividing the total quantum of work into three categories, viz., civil works, electrical system equipment & mechanical equipment. No provision for escalation is considered. The cost of the Induction Furnace with CCM and Automatic Rolling Mill covers all the costs associated with the construction of the plant, and includes the civil construction cost, cost of equipment for production, cost of auxiliaries and utilities. The total project cost is arrived at by adding to this cost, the pre-operative expenses inclusive of project design and engineering, start-up and training expenses, interest during construction and the margin money to meet the working capital requirements. The table given below give the details of the Project Works Civil, Mechanical and Electrical Cost estimate and the overall project cost estimate. TOTAL PROJECT COST Rs in lakhs Induction Furnace with CCM : Automatic Rolling Mill : Total Project Cost