Welspun Maxsteel Limited

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1 00 Summary Introduction The US$ 3.5 billion Welspun Group is one of India s fastest growing conglomerates having registered a CAGR of 30% over the last decade. It has a presence across five business verticals -- Pipes, Plates & Coils; Home Textiles; Steel; Infrastructure; and Energy. In the first two verticals, it is a fully integrated player. Welspun is also among the recognised world leaders in the fields of Line Pipes and Home Textiles. The Group has a strong foothold in more than 50 Countries, employs over 24,000 people and has as many as 100,000 shareholders. Welspun Maxsteel Ltd. was formed on 22 nd May, 2009 after Welspun Steel Ltd. completed the acquisition of Vikram Ispat, the Sponge Iron division Business of Grasim Industries Ltd. The facility was set up in 1989 with design capacity of 0.75 million tons of Sponge Iron in the form of HBI (Hot Briquetted Iron). This unit takes pride in being the first and the only one of its kind in the world to produce both HBI and DRI (Direct Reduced Iron) from the same Reactor" using state of the art technology HYL III from HYLSA of MEXICO and engineering expertise of Davy Dravo of USA. Welspun Power and Steel Ltd. signed a MOU with Government of on 18 th August 2009 to invest Rs crores for setting up an Integrated Steel Plant along with a 660 MW Captive power plant through a Special Purpose Vehicle viz. Welspun Maxsteel Ltd. at Salav, Taluka Murud, Dist. Raigad falling in C zone under the package Scheme of Incentives (PSI) 2007 and to provide direct and indirect employment to 5000 persons in 1-1

2 conformity with the state government s policy regarding employment of local persons. The plant has already received Environmental Clearance for expanding the sponge iron plant from 0.75 MTPA to 1.75 MTPA, with Pellet Plant (4 MTPA), Integrated Steel Plant (1.5 MTPA), Captive Power Plant (330 MW) at Village Salav, P.O. Revdanda, District Raigad, vide MOEF letter No. F.No.J /183/2008-IA.II (I) dated 27 th January The additional units for which Environmental Clearance was granted could not be implemented immediately due to several reasons. The major reason was the uncertainity of regular supply of natural gas and the slowdown of the economy. Now that the new management is taking over, it is proposed to take up the project with technology oriented substitutions in the project profile to make the project viable. It is proposed to enhance DRI / EAF route by adding BF / BOF route in view of its versatility and to utilize the coke from the Coke oven plant. It has also been proposed to do away with the 330 MW coal based captive power plant and use purchased power. For the substitution of Natural Gas with Coke Oven Gas, M/s Welspun Maxsteel Limited (WML) intends to install a recovery type 3.0 MTPA coke oven plant for the generation of required Gas for the production of Sponge Iron. The by-products like coke, benzol, sulphur, BTX shall be recovered and disposed off suitably in the market. It is also proposed to install some more steel plant units under new management viz. 4.0 Mt/yr Pellet Plant, 300 sq.mt. Sinter 1-2

3 Plant, 2.3 Mt/yr Blast Furnace, 2 x 130 t SMS shop, 1 x 5 strand Bloom Caster, 1 x 3 strand Beam Blank Caster and 1.0 Mt/yr Section Mill and service units like 2 x 300 t/d Lime Calcination Plant, 1 x 300 t/d Dolo Calcination Plant and 1400 t/d Oxygen Plant as per the original project plan. The process and material flow diagram is shown in fig. 1. The proposed plant shall have positive impact on socio-economic development of the area along with further employment of local people by expanding the plant operation Site Location The proposed units of 2.0 Mt/yr Steel Plant is proposed to be set up within the existing sponge iron plant of M/s Welspun Maxsteel Ltd. The existing sponge iron plant is situated in Salav village of Raigad district in the state of. The site is at a distance of 150 km from Mumbai, and about 45 km from Roha by Road. The location map and the regional map of the proposed site have been shown in the drawing no. WML/MH/PR/001 and drawing no. WML/MH/PR/002 respectively. The indicative coordinates of the proposed site are given below: Latitudes : N Longitudes : E The company already has land in its possession for its existing sponge iron plant complex. The general layout is shown in fig Water The total water requirement for 2.0 Mtpa steel plant will be about 50 MLD. 1-3

4 00.04 Power The total estimated power requirement of the proposed steel plant will be about 230 MW. The power requirement is proposed to be supplied from the power generated from the BF/CO/LD/DRI flue gases. Some power would also be available from the top pressure recovery turbine generators of the blast furnace and the CDQ. The shortage of power (approx MW) will be purchased from the state electricity grid Environmental Management Suitable mitigation schemes are envisaged in order to control environmental pollution within the permissible norms and keep the environment fairly clean Project Implementation The implementation schedule for installation of the proposed plant is indicated in fig. 3 in the form of bar chart Block Capital Cost The capital investment for the proposed plant will be about Rs crores. 1-4

5 Fig. 1 Process & Material Flow Sheet 1-5

6 Fig. 2 General Layout 1-6

7 Fig. 3 Implementation Schedule 1-7