API Ispat & Powertech Pvt. Ltd.

[Expansion of Steel plant] Village: Siltara, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur Chhattisgarh PRE-FEASIBILITY REPORT

Contents Chapter 1: Executive Summary... 1 1.1 About Project Proponent... 1 1.2 About the Proposed Project... 1 Chapter 2: Introduction of the Project / Background Information... 3 2.1 Identification OF Project and Project Proponent... 3 2.2 Brief Description of Nature of Product... 3 2.3 Need for the Project and importance to the Region... 3 2.4 Demand Supply GAP... 4 2.5 Employment Generation (direct & indirect)... 5 Chapter 3: Project Description... 6 3.1 Type of the Project... 6 3.2 Location of the Project... 7 3.3 Details of the Alternate Sites... 8 3.4 Size OR Magnitude of Operation... 8 3.5 Manufacturing Process:... 9 3.5.1 Pelletization Unit:... 9 3.5.2 Induction Furnace:...12 3.5.3 Rolling Mill Unit:...15 3.5.4 Ferro Alloys Manufacturing Unit:...17 3.6 Raw Material Requirement...18 3.7 Water requirement and its Source...20 3.8 Solid Waste Generation and its Disposal:...20 Chapter 4: Site Analysis...21 4.1 Connectivity...21 4.2 Land use...21 4.3 Topography...22 4.4 Existing land use pattern...22 4.4 Existing infrastructure...22 4.5 Climatic data from secondary sources...22 Chapter 5: Planning Brief...23 5.1 Planning Concept...23 5.2 Population Projection...23 - i -

5.3 Land use Planning...23 5.4 Amenities / Facilities...23 Chapter 6: Proposed Infrastructure...24 6.1 Industrial Area (processing Area)...24 6.2 Residential Area (non Processing Area)...24 6.3 Green Belt...24 6.4 Social Infrastructure...25 6.5 Connectivity:...25 6.6 Drinking Water Management...25 6.7 Sewerage System...25 6.8 Industrial Waste Management...26 6.9 Solid waste Management & its Disposal...26 6.10 Power Requirement & Its Source...26 Chapter 7: Rehabilitation & Resettlement (R & R) Plan...27 Chapter 8: Project Schedule & Cost Estimates...28 8.1 Project Schedule...28 8.1 Project Cost...28 Chapter 9: Analysis of Proposal...29 9.1 Financial and Social Benefits...29 9.2 Socio-economic Developmental Activities...29 ii

Chapter 1: Executive Summary 1.1 About Project Proponent API Ispat & Powertech Pvt. Ltd. [here in after referred as APIIPPL] company is in steel business and having good reputation in the market, which was gained with good business experience. Looking forward in prospects of Steel sector, APIIPPL propose to go for expansion of steel plant in Raipur District of Chhattisgarh State. 1.2 About the Proposed Project API Ispat & Powertech Pvt. Ltd. is existing steel plant at Siltara village, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur, Chhattisgarh. Now as a part of expansion, APIIPPL is planning to enhance the capacity of Induction Furnace, Rolling Mill and establish new unit of Pellet plant, EAF and Ferro alloys. Following is production capacity and plant configuration: Table 1: Unit Configuration Sr. No. Unit Existing CFE awarded Proposed Implemented To be Expansion commissioned 1. Iron Ore Beneficiation and Pelletization Plant 2. DRI Kilns (Sponge Iron ) 3 Steel Melting Shop a Induction Furnace with CCM (MS Ingots/ billets/ blooms) b Electric Arc Furnace with AOD/ VOD & Caster (MS and SS Ingots/ billets/ blooms) --- --- 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million 1 x 350 TPD = (105,000 2 x 12 Tons = (86400 1 x 350 TPD = (105,000 --- 3 x 15 Tons = (162000 --- --- 2 x 20 MVA = (120000 4. Rolling Mill --- 1 x 322.5 TPD + 1 x 161.7 TPD = (145250 After Expansion 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million ---- 2 x 350 TPD = (210,000 1 x 650 TPD = (200000 2 x 12 MT & 3 x 15 MT = (248400 2 x 20 MVA = (120000 1 x 322.5 TPD, 1 x 161.7 TPD & 1 x 650 TPD & = (345250 5. Ferro alloys [2 x 9 MVA] --- --- 2 x 9 MVA 2 x 9 MVA i. Ferro Silicon --- --- 12600 TPA 12600 TPA Page No.: 1

or or or ii. Silico Manganese --- --- 28400 TPA 28400 TPA or or or iii. Ferro Manganese --- --- 37000 TPA 37000 TPA 6 Power Plant WHRB based 8 MW 10 MW --- 18 MW 7 Power Plant FBC based 7 MW --- --- 7 MW 97.75 acres of land is in possession of management and proposed expansion will be taken up the existing plant premises. Total project cost envisaged for the proposed expansion project is Rs.240 Crores. ***** 2

Chapter 2: Introduction of the Project / Background Information 2.1 Identification of Project and Project Proponent API Ispat & Powertech Pvt. Ltd. [here in after referred as APIIPPL] company is engaged in steel business and having good reputation in the market, which was gained with good business experience. Looking forward in prospects of Steel sector, APIIPPL propose to go for expansion of steel plant in Raipur District of Chhattisgarh State. 2.2 Brief Description of Nature of Product The company after assessing the market potential of the steel industry thoroughly decided to go in for iron-ore pellets. The highly encouraging response received on market survey also ruled favorably for the said project. Promoters are well experienced entrepreneurs and are well supported by technical personnel experience to run such unit. Presently, most of the coal based sponge iron plants in India uses iron ore lumps. The requirement is generally 1.8 t/ t of sponge iron. This high requirement is mainly due to the fines generated in handling the purchased ore from the source to the plant. This reduces the kiln campaign length and increases ore fines lost. Use of pellets with better physical and metallurgical properties for sponge iron production reduces the accretion formation in the kiln and the pellets consumption is about1.6 t/t. Further, the production from the kiln is expected to increase by 25% to 30%. In view of the above, API Ispat & Powertech Pvt. Ltd. proposed to go for expansion of steel plant at Siltara village, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur, Chhattisgarh. 2.3 Need for the Project and importance to the Region Utilization of low grade ore and fines has to play an important role. In India partly due to the sponge iron sector; the overall percentage of lumps usage in steel making (47%) is higher than most other countries. As hard ore reserves is depleting day by day, lump generation suitable for blast furnace operation is coming down resulting in production of large amount of surplus fines. Alternative Page No.: 3

iron making processes for production of steel may lead to changing pattern of use material inputs and feed stock causing significant shift in respective share of lumps and agglomerated iron ore (pellets) and will also enable the use of ores which could not be utilized earlier. As fines forms considerable part of iron ore resources, value addition to the iron ore fines through various activities such as beneficiation, Pelletization is the need of the hour. 2.4 Demand Supply GAP With the rapid development of Infrastructure and manufacturing sector, the Iron and steel industry is poised for an accelerated growth. Steel demand in the country is increasing at an average rate of 10% and is likely to remain in 10-12% range at least for the next decade. In order to meet the steadily growing steel demand in the country, domestic steel producing capacity is required to be higher than 110 mtpa within next three years and, 150 mtpa by the year 2016-17. Indian economy is growing at more than 10% rate, steel demand and supply will grow in the same way. As good quality iron ore deposits are depleting fast beneficiation technologies will have to be adopted to meet iron ore demand. Therefore good yield of beneficiation process generally around 70 % will make this technology economically viable. Agglomeration technologies such as Pelletization will have to be added to DRI Plant / Steel Plant so that concentrates can be used as feed material. Recycling of cheaper raw material (fines) by beneficiation and pelletization process as feed material will result in better Return on Investment as compared to using Iron ore as feed material. With superior reducibility behavior of pellets compared to lump ore efficiency of DRI production improves. It can be concluded from results obtained by conducting various tests on manufactured pavement blocks that substitution of iron ore tailings for sand or quarry dust shows better compressive strength without much change in water absorption. In the Indian context, by the year 2020, India s production of steel is expected to touch110 Million Tonnes and it is imperative that the fines generated in the mining of iron ore be utilized for the production of steel. The Indian steel industry which predominantly uses expensive lump ore is gradually moving towards usage of iron ore pellets. Page No.: 4

The present Indian raw material scenario offers an opportunistic disposition towards pellet making owing to the availability of large quantities of sub grade fines, slimes and blue dust etc. at different mine heads. These materials are not suitable for sinter making. Pelletization is the only possible route for salvaging these, otherwise waste but valuable materials. Recent techno-economic studies indicated favorable indices for installation of pellet plants, both small and large scale. The demand supply analysis also underlines the need for Pelletization. 2.5 Employment Generation (direct & indirect) PHYSICAL INFRASTRUCTURE Once the proposed activity is commissioned, the socio-economic status of the local people will improve and there by infrastructure facilities like communication systems will improve. water supply. Most of the villages at present do not have protected After the implementation of the project, the affordability of the public to spend on water treatment, supply & distribution will more along with the aid from the state government. EMPLOYMENT POTENTIAL The proposed project creates employment to 100 people during construction and 50 people during operation of the proposed expansion. Sr. No. Category Nos. of employment 1. Skilled 15 2. Semi skilled 15 3. Un-skilled 25 ***** Page No.: 5

Sr. No. Chapter 3: Project Description 3.1 Type of the Project API Ispat & Powertech Pvt. Ltd. is existing steel plant at Siltara village, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur, Chhattisgarh. Now as a part of expansion, APIIPPL is planning to enhance the capacity of Induction Furnace, Rolling Mill and establish new unit of Pellet plant, EAF and Ferro alloys. Following is production capacity and plant configuration: Unit Existing CFE awarded Proposed Implemented To be Expansion commissioned 1. Iron Ore Beneficiation and Pelletization Plant 2. DRI Kilns (Sponge Iron ) 3 Steel Melting Shop a Induction Furnace with CCM (MS Ingots/ billets/ blooms) b Electric Arc Furnace with AOD/ VOD & Caster (MS and SS Ingots/ billets/ blooms) --- --- 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million 1 x 350 TPD = (105,000 2 x 12 Tons = (86400 1 x 350 TPD = (105,000 --- 3 x 15 Tons = (162000 --- --- 2 x 20 MVA = (120000 4. Rolling Mill --- 1 x 322.5 TPD + 1 x 161.7 TPD = (145250 After Expansion 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million ---- 2 x 350 TPD = (210,000 1 x 650 TPD = (200000 2 x 12 MT & 3 x 15 MT = (248400 2 x 20 MVA = (120000 1 x 322.5 TPD, 1 x 161.7 TPD & 1 x 650 TPD & = (345250 5. Ferro alloys [2 x 9 MVA] --- --- 2 x 9 MVA 2 x 9 MVA i. Ferro Silicon --- --- 12600 TPA 12600 TPA or or or ii. Silico Manganese --- --- 28400 TPA 28400 TPA or or or iii. Ferro Manganese --- --- 37000 TPA 37000 TPA 6 Power Plant WHRB based 8 MW 10 MW --- 18 MW 7 Power Plant FBC based 7 MW --- --- 7 MW Page No.: 6

3.2 Location of the Project Proposed Project is located at Siltara village, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur, Chhattisgarh. 97.75 acres of land is in possession of management and proposed expansion will be taken up the existing plant premises. Topographical location of project site is shown below: Page No.: 7

Sr. No. 3.3 Details of the Alternate Sites No alternative sites have been considered as proposed expansion will be taken up in the existing plant premises. 3.4 Size OR Magnitude of Operation As a part of expansion, APIIPPL is planning to enhance the capacity of Induction Furnace, Rolling Mill and establish new unit of Pellet plant, EAF and Ferro alloys. Following is production capacity and plant configuration: Unit Existing CFE awarded Proposed Implemented To be Expansion commissioned 1. Iron Ore Beneficiation and Pelletization Plant 2. DRI Kilns (Sponge Iron ) 3 Steel Melting Shop a Induction Furnace with CCM (MS Ingots/ billets/ blooms) b Electric Arc Furnace with AOD/ VOD & Caster (MS and SS Ingots/ billets/ blooms) --- --- 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million 1 x 350 TPD = (105,000 2 x 12 Tons = (86400 1 x 350 TPD = (105,000 --- 3 x 15 Tons = (162000 --- --- 2 x 20 MVA = (120000 4. Rolling Mill --- 1 x 322.5 TPD + 1 x 161.7 TPD = (145250 After Expansion 1 x 2000 TPD or 2 x 1000 TPD = (0.6 Million ---- 2 x 350 TPD = (210,000 1 x 650 TPD = (200000 2 x 12 MT & 3 x 15 MT = (248400 2 x 20 MVA = (120000 1 x 322.5 TPD, 1 x 161.7 TPD & 1 x 650 TPD & = (345250 5. Ferro alloys [2 x 9 MVA] --- --- 2 x 9 MVA 2 x 9 MVA i. Ferro Silicon --- --- 12600 TPA 12600 TPA or or or ii. Silico Manganese --- --- 28400 TPA 28400 TPA or or or iii. Ferro Manganese --- --- 37000 TPA 37000 TPA 6 Power Plant WHRB based 8 MW 10 MW --- 18 MW 7 Power Plant FBC based 7 MW --- --- 7 MW Page No.: 8

3.5 Manufacturing Process: 3.5.1 Pelletization Unit: The iron ore Pelletization unit comprises of following sections: a. Drying & Prepn. of Iron Ore Fines b. Grinding c. Mixing and Blending d. Pelletization e. Screening f. Travel Grate Furnace g. Rotary Kiln h. Cooler i. Stacking j. Recovery of Dust and Spillage a. Drying & Preparation of Iron ore Fines: Generally Iron Ore Fines, Lime Stone and Dolomite fines available, contain more than 6-7% moisture and require drying before grinding. The drying is carried out in Rotary Drum Dryer. The moisture content in the dry material is controlled. The low grade Iron Ore Fines is feed in a screen for separation. Oversize/ under size moves to the primary grinding circuit. b. Grinding Iron Ore Fines, Dolomite and Lime Stone are mixed in required proportion and fed into a Ball Mill. The fineness of the product is controlled as may be necessary for particular ore and Pellet quality. c. Mixing and Blending Iron Ore powder blended with Bentonite and other binding materials in desired proportion. Small quantity of water is added during blending operation. This raw mix is ready for Pellet making and store in feed hopper. d. Pelletization Controlled quantity of raw mix is fed on disc Pelletizer. Some amount of water is sprinkled for producing Pellets. These Pellets are passed through Page No.: 9

oversize and undersize screens. Sized Pellets are then sent to sintering section. e. Screening Pellets produce in Pelletization sections are passed through oversize and undersize screens. Rejects Pellets are sent back to raw mix silos sized Pellets are fed in to Indurations Furnace. f. Travel Grate Furnace A Travel Grate Furnace is used for indurations of Pellets. This is divided into 3 sections (Drying Preheating Heating). Hot Pellets at around 950ºC to 1000ºC from this Travel Grate are dropped into the Kiln for further strengthening. g. Rotary Kiln h. Cooler Rotary Kiln receives Pellets from the Indurations Furnace where Pellets have to withstand at high temperature approx. 1050ºC 1200ºC. Here the Pellets gain more hardness due to high temperature. Furnace Oil / Producer Gas will be used as a fuel inside the Kiln. After the Kiln the Pellets are passed to the Grate Cooler. Grate Cooler receives hot Pellet with temperature up to 1200ºC coming from Rotary Kiln. Cooler has its own blowers to blast the air from bottom. The hot air from the first zone is used as a combustion air in kiln. The hot blast of the second zone is used in the pre-heating zone-1 of travel grate and the air from the 3 rd zone is discharged to the atmosphere through chimney as its dust concentration is well within the permissible limits of pollution norms. Volume of cooling air in all the three zones is regulated automatically through the temperature control loops as per the requirement. Cold Pellets at about 100ºC are discharged on conveyors and they are quenched by the cold water for further cooling and then conveyed to the stock pile/ loading hoppers. i. Stacking Page No.: 10

The screened Pellets of required size duly cooled at air cooler and subsequently natural cooling are transported to Bunkers j. Recovery of Dust and Spillage Spillage from drying zone and preheating zone of traveling grate, dust from the wind box of traveling grate and dust collected through de-duster of technological process shall meet and will be sent to dust bin via belt conveyor, after they are ground together with iron ore concentrate at grinding mill. Spillage (dry Pellets) produced at the discharge end of traveling grate will be fed into the kiln from the feed chute of the kiln feed end by bucket elevation. Almost all the dust and spillage are re-circulated and recovered. Process flow diagram Page No.: 11

3.5.2 Steel Melting Shop Semi-finished steel in the form of Steel Ingots & Billets is manufactures through Induction Furnace with Concast that works on the principle of induction melting of scrap/ Pig Iron with the help of electric power. An alternating electromagnetic field induces eddy current in the metal so that the electrical energy converts into heat whose quantity depends on the resistively of the charge. If the charge consists of the metal scrap, chips other metal rejections then the eddy currents arise between separate pieces of charge because high contact resistance. So small charge pieces required increase frequency of current that feeds the induction heater in order to speed up melting of the charge. Induction furnaces operate on current of commercial frequencies (50 HZ) or on current of higher frequencies from 500 to 2000 Hz. Induction furnaces are beneficial in steel making for low melting loss. An Induction furnace constitutes a single larger primary coil made of water- cooled copper tube. The working voltage impressed across the terminals of the coil. These furnaces have a great much application for melting of iron, Steel and Nonferrous. This type of furnace has a rammed lining. The ramming mantel silica mass contains should more than 96% silica and minimum of Al 2 O 3 & Fe 2 O 3. Before ramming the material a steel template kept inside the furnace and rammed the material between the template and the insulated coil of the induction heater. To minimize the consumption of electric power and cut down the melting period the crucible wall must be as thin as possible. During running the furnace one must keep watch on the state of lining because it operates under most unfavorable condition. The inside of crucible lining is in contact with liquid metal while its outside surface contacts the water-cooled induction. Charging: - The pieces of scrap should be kept on the bottom gently to avoiding impacts into a compact heap. The scrap pieces / Pig Iron should be in small size that provide good compacting of the batch without leaving spacing between the charge and crucible wall. This offer an advantage of quick melting of the charge with a minimum power spent in the stage for the heat. Page No.: 12

The zone of a highest temperature during the meet lies in the power part of the crucible therefore it is practical to place first high melting scrap on the crucible bottom. Large and high melting pieces should stand parallel and close to the crucible was while low melting components should be in the middle of the large crucible. Small capacity furnaces are loaded manually and the large capacity furnaces with the aid of buckets. Melting: - At the beginning of the melting the furnace works for 5 to 10 minutes on low power until the surge of current fed from the generator disappear. The furnace power is then brought up to a maximum. The charge melts with the crucible held closed. When the charge approaches the fluid stages then the solid pieces are pressed backed with a crow bar. The furnaces is then loaded to its capacity by adding small size of scrap as soon as the charge melted, the stag is formed to protect the metal from oxidation and to avoid reduce the melting loss. If the slag generate in excess it should be skimmed off periodically, at the last to deoxidized the metal with Ferromanganese, Silico-manganese and Ferro-silicon. Now the metal is ready tap for either in ingot or billet casting. Casting in Ingot mould: - For casting ingot the metal temperature should be around 1560ºC/ 1570 ºC in ladle. Liquid metal tap from furnace to ladle by the help of crane then the ladle in the centered on the trumpet metal flows from the ladle bottom and filled the ingot mould. Thus the ingot is ready. Casting in B.C.M: - Steel for making billet, the temperature of liquid metal from furnace to ladle, the final metal temperature in ladle should be 80ºC. superheat from liquidious. Liquid metal is storage in tundish through ladle then the tundish metal passes from the various section of mould jacket that is as per requirement (100 X 100 mm, 125 X 125 mm, 160 X 160 mm, 200 X 200 mm) this is a continuous process, length of billet of is cut as par requirement. Process flow chart is enclosed. Plant facilities for Continuous Casting Machine Billet caster: Page No.: 13

The billet caster shall be complete with ladle stand, mould assembly, strand guide segments and supports withdrawal and straightening system, mould cooling system, Cut off equipment including length measuring device, Marking machine etc. Requisite dummy bar and facilities for Dummy bar disconnecting and a dummy bar receiver will be included. Auxiliary equipment : The auxiliary facilities required for the Billet caster will be included. This will include operating platform, cooling bed, ventilation system for spray chambers, equipment for collection and disposal of crop-ends, Repair and assembly facilities for moulds, and segments, Tundishes, Tundish preparation facilities including tundish drying station, Hydraulic system and Centralized lubrication system, scale handling system. Electrical Equipment: The electrical equipment for the caster will include the drives, HT switchgear, LT switchgear, control desks, cabling and accessories. Instrumental and automation: A modern DCS process automation system shall be provided for control of process function, sequencing and interlocking and to execute safely controls. Specific features shall include mould level control, computer aided quality control, and process field instruments comprising measuring units, transmitters, load cells, actuators, Programmable controllers and PCs and communication system. Plant facilities for Ladle Furnace The LF installation will be single station system with provision for arc heating, inert gas stirring, and addition of ferroalloys and additives. The LF will be complete with transformer, Ladle stirring system Aluminum wire feeder, Carbon injecting device, additives storage and addition system, Sampling and temperature measuring device. A fume extraction and cleaning system consisting of bag filters, ID fan and chimney with the related ductwork will be provided. Auxiliary equipment: Page No.: 14

The auxiliary facilities required for the LF will be included the transfer cars, slag handling facility, hydraulic and lubrication systems, Electro nipping station. Argon oxygen decarburisation unit (AOD) / Vacuum degassing/ Vacuum oxygen decarburisation (VD/VOD) One AOD/VOD converter of replaceable shell design will be installed for production of different grades of stainless steels. Treatment of the liquid stainless steel at AOD/VOD, stainless steel requiring vacuum treatment will be brought to vacuum degassing unit. After tapping heat from AOD/VOD, alloy steel requiring vacuum treatment will be brought to vacuum degassing unit. Ladle will be placed inside the vacuum tank after which tank will be sealed with tank cover. Vacuum pump will be switched on and argon gas will be simultaneously purged in the liquid steel during entire vacuum treatment. Sample will be taken and, if necessary, alloying elements will be added through vacuum lock hopper to get the desired chemical composition. Vacuum degassed steel will be shifted to ladle turret for casting into billets. 3.5.3 Rolling Mill Unit: Rolling mill unit comprise of Re-heating furnace, Roughing Mill, Intermediate Mill, Finishing Mill, Finishing Section and Auxiliary Equipments. Reheating furnace A pusher type furnace has been envisaged for the heating of billets. The furnace will be end charging and side discharging. It will have single row as well as double row charging facility. In priority rolling mill will be operated on hot charging basis i.e. ingots/ billets will be directly rolled in rolling mill without heating. In case Page No.: 15

heating will be required then the Producer gas will be utilized as primary fuel and Furnace oil will be utilized as secondary as well as auxiliary fuel in pusher type of re-heating furnace of rolling mill. The furnace combustion system will comprise of air blowers, coal/ FO storage, supply and preheating system and other associated facilities. The product of combustion will leave the furnace at charging end and exhausted through underground flue tunnel and passed through a metallic tubular recuperator before finally let off to a self-supporting steel chimney of sufficient height. furnace. Bar and round mill A set of instrument will be used for smooth operation of the A cross country type mill has been envisaged for the plant. The stands have been grouped into roughing, intermediate and finishing groups. Roughing group will have 4 (four) stands, intermediate group will have 8 (eight) stands and finishing mill will have 8 (eight) stands. Roughing group of stands will be driven by one motor. 4 nos. of intermediate stands will be driven by two motors and balance 4 nos. will be driven by a separate motor. Each stand of finishing group will be driven by single motor. Necessary guides and troughs will be provided at entry and exit of mill stands. One wire rod out let has been provided in the mill. The wire rod line will have 4 stand block driven by a single motor through gear box. Coil forming and handling of coil is provided. Automated tilting, drop type tilter and feeding arrangement will be provided in roughing group of stands. Repeaters have been provided in roughing / intermediate stands as necessary. Design provision has been made for introduction of slit rolling facility in future to roll 8 mm, 10 mm & 12 mm rebars in two strands. The rebars discharged from the mill will pass through a water cooling system comprising cooling pipes with high pressure water nozzles for rapid water quenching. At the cooling pipes the bar skin temperature will be reduced to about 600ºC. The core of the bar still remains hot. This entrapped heat tempers the bar. This thermo-mechanical Page No.: 16

treatment of the bars increases tensile strength without adversely effecting weldability and elongation properties. This process eliminates requirement of cold twisting of bars for production of rebars. A dividing shear, to cut the products to cooling bed length, will be located immediately after the water cooling system. This shear will divide all products to cooling bed lengths. Rake type cooling beds have been envisaged to receive the rolled product. Cooling bed will be provided with incoming and outgoing roller tables. One cold shear has been provided to cut the bars coming out of cooling bed into commercial length of 6 to 12 m. The bar products will be formed into bundles and will be strapped by strapping machine manually. The finished products will be removed by overhead EOT crane and stored in the storage area or dispatched through road vehicles. 3.5.4 Ferro Alloys Manufacturing Unit: In Ferro alloy plant, Silico Manganese (Si-Mn), Ferro Manganese (Fe-Mn) and Ferro Silicon (Fe-Si) is produced by smelting of Manganese ore with coke, coal, quartz and dolomite. The smelting is a continuous process which will be done in submerged arc furnace with a line voltage of 70-170V. The raw material premix will be charged into the furnace near the electrodes through chutes. The electrodes used are of self-baking type in which a series of cylindrical steel casings Page No.: 17

welded on the top of each other forms the electrode column in which solid green carbon paste blocks are added periodically from the top of the column. This system takes advantage of the electric power used for the process to bake the electrodes in place. The smelting process thus in submerged arc furnace produces the ferro alloys. Manufacturing Process Flow Chart is as below: Manganese Ore Coke Quart Feeders (for proper proportion) Submerge Electric Arc Furnace Ferro Alloys Slag 3.6 Raw Material Requirement Raw material required for the proposed expansion is as followed: a. For Iron Ore Pellet Plant (0.6 million Tons/ year): Sr. No. Raw Material Quantity ( Source Mode of Transport 1. Iron ore fines 663060 Local / Orissa Sector By Rail & Road through covered trucks 2. Coke 21450 Indonesia / South Africa / Australia Through sea route / rail route / by road 3. Limestone 9020 Chhattisgarh / Madhya Pradesh By Rail & Road through covered trucks 4. Bentonite 6800 Gujarat By Rail & Road through covered trucks Page No.: 18

b. For Induction Furnace unit (3 x 10 MT = 90000 Sr. No. Raw Material Quantity ( Source Mode of Transport 1. Sponge Iron 13500 In house generation ---- 2. Scrap 19125 Chhattisgarh By road through covered road 3. Ferro Alloys 2025 In house generation ---- c. For Rolling Mill (1 x 650MT = 200000 Sr. No. Raw Material Quantity ( Source Mode of Transport 1. Billets / Ingots 216600 In house generation ---- d. For Ferro Silicon unit (2 x 9 mva): Sr. No. Raw Material Quantity ( Source 1. Quartz 16890 Chhattisgarh / Andhra Pradesh Mode of Transport By Rail & Road through covered trucks 2. Pet coke 5600 Chhattisgarh / Bihar By Rail & Road through covered trucks 3. MS Scrap 350 Chhattisgarh By Road through 4. Electrode paste 840 Andhra Pradesh (Vizag) e. For Silico Manganese unit (2 x 9 mva): covered trucks By Rail & Road through covered trucks Sr. No. Raw Material Quantity ( Source Mode of Transport 1. Manganese Ore 31780 MOIL / OMC By Rail & Road through covered trucks 2. Mn. Slag 18000 In house generation ---- 3. Quartz 7800 Chhattisgarh / Andhra Pradesh By Rail & Road through covered trucks 4. Pet coke 3160 Chhattisgarh / Bihar By Rail & Road through covered trucks f. For Ferro Manganese unit (2 x 9 mva): Sr. No. Raw Material Quantity ( Source Mode of Transport 1. Manganese Ore 53400 MOIL / OMC By Rail & Road through covered trucks Page No.: 19

Sr. No. Raw Material Quantity ( Source Mode of Transport 2. Pet coke 30780 Chhattisgarh / Bihar By Rail & Road through covered trucks 3. MS Scrap 2060 Chhattisgarh By Road through 4. Electrode Paste 6160 Andhra Pradesh (Vizag) 3.7 Water requirement and its Source covered trucks By Rail & Road through covered trucks Water required for the proposed expansion project will be 1400 KLD. Water required will be supplied by Chhattisgarh Ispat Bhumi Ltd. 3.8 Solid Waste Generation and its Disposal: Sr. Type of Solid waste Quantity Disposal Proposed No. (in TPD) 1. Ash / Dust generated from Pellet plant = 27 Will be recycled in pellet making process. 2. Tar generated from Producer gas plant = 2 Will be given to coal tar distillation units 3. Slag from SMS = 90 Slag generated from SMS will be given to slag crushing units. 4. Mill scales from = 50 Reused in SMS Rolling mill 5. Slag from Fe-Mn = 100 To be reused in manufacture of Silico Manganese as it contains high MnO 2 and Silicon 6. Slag from Fe-Si = 13 To be used in cast iron foundries. 7. Slag from Si-Mn = 103 To be used for road construction / slag cement manufacture ***** Page No.: 20

Chapter 4: Site Analysis 4.1 Connectiv ity The proposed site is well connected with Road Rail network. The following table gives brief regarding connectivity of the proposed site: Component Road Rail Air Sea Port Description = NH 200 = 2.4 km = Nearest station 7.3 km (Mandhar RS) Mumbai-Howrah mail line = Raipur Air Port 23 Kms. = Vishakapatanam 505 Kms. The location has a big advantage in its closed proximate to its market. Traditionally, iron manufacturing units have tendered to cluster in the eastern zone of India namely in the state of Jharkhand, Orissa and Chhattisgarh because of easy availability of major raw input iron-ore and coal. Infrastructural and other utility services are easily available. Skilled and un-skilled laborers are also available easily. Below mentioned table gives brief regarding environmental setting of the project site Sr. No. Particulars Distance from the site 1. National Park = No national Park is situated within the 15 km radial distance periphery 2. Wild life sanctuaries = Nil 3. Eco Sensitive Areas = Nil 4. Forests = Nil 5. Surface water bodies = Kharun River 1.8 Kms. Kulhan nala 7.8 Kms. 6. Costal Regulation Zone [CRZ] = Nil 7. Industrial Area = The unit is located adjacent to Phase 2 of Siltara Industrial Area, Raipur 4.2 Land use Existing plant is located adjacent to Phase # 2, Siltara Industrial Growth Centre. The terrain of the land is almost plain. Page No.: 21

4.3 Topography The topography of the land is flat without undulations. 4.4 Existing land use pattern APIIPPL is an existing plant, partly located in Siltara Village, adjacent to Phase # 2, SIltara Industrial Area, and its adjacent Village Sondra, Raipur Tehsil & District, Chhattisgarh. Private owned land is diverted for Industrial purpose. 97.75 acres of land is in possession of management and proposed expansion will be taken up in the existing plant premises. There are no ecologically sensitive places like national park, sanctuary, biosphere reserve, reserve forest etc. around 10 Kms. radius of the site. There is no route of migratory animals within the project site. The site satisfies the criteria stipulated by the Ministry of Environment & Forest, Government of India for setting up of industries. 4.4 Existing infrastructure Water supply in most of the villages is available. Inter-village transport facility is available only for the selected villages. While educational facilities & health facilities are not encouraging in most of the villages. There is well established road connection. 4.5 Climatic data from secondary sources Raipur has a tropical wet and dry climate, temperatures remain moderate throughout the year, except from March to June, which can be extremely hot. The temperature in April May sometimes rises above 48 C (118 F).These summer months also have dry and hot winds. In summers, the temperature can also go up to 50 C. The city receives about 1,300 millimetres (51 in) of rain, mostly in the monsoon season from late June to early October. Winters last from November to January and are mild, although lows can fall to 5 C (41 F). ***** Page No.: 22

Chapter 5: Planning Brief 5.1 Planning Concept API Ispat & Powertech Pvt. Ltd. is existing steel plant at Siltara village, near Phase II, Siltara Industrial Area, Tehsil and District: Raipur, Chhattisgarh. Now as a part of expansion, APIIPPL is planning to enhance the capacity of Induction Furnace, Rolling Mill and establish new unit of Pellet plant, EAF and Ferro alloys 5.2 Population Projection The project will be providing direct employment to nearly 100 workers. The local persons will be given preference in employment as per the qualification and technical competencies. Necessary training will be given to train the unemployed youths of the nearby villages as per the qualification and technical competencies. Indirect employment opportunities will be created in the periphery of the project automatically as the project started operation in the region. In order to operate and maintain the plant facilities, including its technical general administration needs, the manpower for the proposed expansion will be 100. The above manpower covers the top management, middle and junior level executives and other supporting staff including workforce. 5.3 Land use Planning APPIIPL is an existing plant. Land is converted for Industrial purpose. 97.75 acres of land is in possession of management and proposed expansion will be taken up in the existing plant premises. 5.4 Amenities / Facilities Facilities like canteen, rest room and indoor games facilities has already been provided in the existing plant as basic facilities to workers. No other additional facilities are proposed. ***** Page No.: 23

Chapter 6: Proposed Infrastructure 6.1 Industrial Area (processing Area) The main plant area comprises of iron ore handling area, storage area, crushing sizing area, iron ore beneficiation unit etc. The major equipment and facilities envisaged for the pelletizing plant are described below The pelletizing plant will mainly consist of the following sections: Storage and handling of iron ore fines Storage, handling and preparation of binder and additive Iron ore improvement Proportioning and mixing Balling, in duration and cooling Finished product storage 6.2 Residential Area (non Processing Area) No colonization is proposed; however facilities like canteen, rest room and indoor games facilities will be provided in the proposed plant and one Admin building is also proposed. 6.3 Green Belt More than 1/3 rd of total land available is reserved for plantation i.e. greenery. Greenbelt development plan Local DFO will be consulted in developing the green belt. Greenbelt of 33% of the area will be developed in the plant premises as per CPCB guidelines. 15 m wide greenbelt is being maintained all around the plant. The tree species to be selected for the plantation are pollutant tolerant, fast growing, wind firm, deep rooted. A three tier plantation is proposed Page No.: 24

comprising of an outer most belt of taller trees which will act as barrier, middle core acting as air cleaner and the innermost core which may be termed as absorptive layer consisting of trees which are known to be particularly tolerant to pollutants. 6.4 Social Infrastructure Social infrastructure will be developed as per need based in the Villages of the close vicinity of the project. 6.5 Connectiv ity: The proposed site is well connected with Road Rail network. The following table gives brief regarding connectivity of the proposed site: Component Description Road = NH 200 = 2.4 km Rail = Nearest station 7.3 km (Mandhar RS) Mumbai-Howrah mail line Air = Raipur Air Port 23 Kms. Sea Port = Vishakapatanam 505 Kms. The location has a big advantage in its closed proximate to its market. Traditionally, iron manufacturing units have tendered to cluster in the eastern zone of India namely in the state of Jharkhand, Orissa and Chhattisgarh because of easy availability of major raw input iron-ore and coal. Infrastructural and other utility services are easily available. Skilled and un-skilled laborers are also available easily. 6.6 Drinking Water Management It is estimated that 20 KLD of water will be required for domestic purpose during operation of expansion project. 6.7 Sewerage System Domestic effluent collected through toilet blocks and other areas will be collected through well designed sewer network and send to Septic tanks followed by soak pits. No effluent will be left-out after Soak pits. Page No.: 25

6.8 Industrial Waste Management Closed circuit system will be adopted in the proposed expansion project. Hence zero effluent discharge will be maintained. Only waste water generated will be sanitary waste water, which will be treated in septic tank followed by soak pit. 6.9 Solid waste Management & its Disposal Sr. Type of Solid waste Quantity Disposal Proposed No. (in TPD) 1. Ash / Dust generated from Pellet plant = 27 Will be recycled in pellet making process. 2. Tar generated from Producer gas plant = 2 Will be given to coal tar distillation units 3. Slag from SMS = 90 Slag generated from SMS will be given to slag crushing units. 4. Mill scales from = 50 Reused in SMS Rolling mill 5. Slag from Fe-Mn = 100 To be reused in manufacture of Silico Manganese as it contains high MnO 2 and Silicon 6. Slag from Fe-Si = 13 To be used in cast iron foundries. 7. Slag from Si-Mn = 103 To be used for road construction / slag cement manufacture 6.10 Power Requirement & Its Source Power required for the proposed project will be sourced from captive and nearby grid. ***** Page No.: 26

Chapter 7: Rehabilitation & Resettlement (R & R) Plan No rehabilitation and resettlement is required as there are no habitations in the existing plant site. ***** Page No.: 27

Chapter 8: Project Schedule & Cost Estimates 8.1 Project Schedule The plant will be implemented in 18 months from the date of receipt of Environmental Clearance from the Hon ble MoEF & NOC from CECB. 8.1 Project Cost The estimated cost for the proposed expansion project will be Rs.240 crores. ***** Page No.: 28

Chapter 9: Analysis of Proposal 9.1 Financial and Social Benefits With the implementation of the proposed project, the socio-economic status of the local people will improve substantially. The land rates in the area will improve in the nearby areas due to the proposed activity. This will help in upliftment of the social status of the people in the area. Educational institutions will also comeup and will lead to improvement of educational status of the people in the area. Primary health centre will also be developed by us and the medical facilities will certainly improve due to the proposed project. 9.2 Socio-economic Dev elopmental Activ ities The management is committed to uplift the standards of living of the villagers by undertaking following activities / responsibilities as the part of Corporate Social Responsibility. Health & hygiene Drinking water Education for poor Village roads Lighting Health & Hygine Personal and domestic hygiene, Maintaining clean neighborhood, Weekly health camps offering free-check up & medicines Ambulance services Education & drug de-addiction, aids. Drinking Water Making drinking water available at centralized locations in the village, Supporting Education Providing books to all poor children, Conducting annual sports festival in the village schools, Providing amenities like fans, lavatories, Maintain play ground etc. ***** 29