for proposed integrated steel plant of 0.7...

M/s. Mukand Ltd. Pre-Feasibility Report

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By

M/s. MUKAND Ltd. At Village- Kanakapur, Taluka & District- Koppal,

Karnataka

Conducted & Prepared By

GREEN CIRCLE, INC.

Integrated HSEQR Consulting Engineers, Scientists & Trainers (MoEF Recognized Environment Laboratory)

(An ISO: 9001, 14001, OHSAS: 18001 Certified Organization & GPCB approved Environment Auditor – Schedule II)

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(Gujarat) India Tel: 0265-2371269.

Mumbai office Flat No 6 ,Ground Floor,Shakuntala Niwas, M G Road,Borivali (E),Mumbai- 400066 Tel : 022-28943090 /60

www.greencircleinc.com ALSO AT

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GOA

E: [email protected]

OVERSEAS AUSTRALIA OMAN KUWAIT AFRICA VIETNAM

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TABLE OF CONTENTS

LIST OF TABLES

Sr. No. Particulars Page No.

1 EXECUTIVE SUMMARY 4

2 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT 5

3 PROJECT LOCATION AND PROJECT DESCRIPTION 9

4 PLANNING CONCEPT 28

5 PROPOSED INFRASTRUCTURE. 30

6 R & R PLAN 31

7 PROJECT SCHEDULE AND COST ESTIMATE 31

8 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) 32

Table.

No. Particulars Page No.

1.1 Proposed Production Capacities 6

3.1 Plant capacity & equipments 14

3.2 Raw Material Consumption 21

3.3 Water Balance Table 23

3.4 Power Requirement 23

3.5 Waste (Hazardous & Non-Hazardous) details 24

3.6 Control Equipments for Air Pollution 24

3.7 Wastewater Sources and its Treatment 25

4.1 land use pattern of the project site 28

7.1 Estimated Project Cost 32


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LIST OF FIGURES

Fig.

No. Particulars Page No.

3.1 Figure 3.1: Location Map of the

Project site 11

3.2 Google image of the Proposed

Project Site 12

3.3 Schematic diagram/ Layout plan of

the proposed project 13

3.4 Schematic Process Steps for Iron &

Steelmaking 20

3.5 ETP plant layout similar to the

existing interlinked project (Unit-I) 26

3.6 STP plant layout similar to the

existing interlinked project (Unit-I) 27


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1.

EXECUTIVE SUMMARY

Mukand Ltd. (Formerly known as Mukand Iron & Steel Works Ltd.), is one of the largest

producer of ‘Alloys and Special Steels’ and Stainless Steels in the country meeting the

requirements of Original Equipment Manufacturers (OEM) for automobiles, auto-component

industries as also of railways, defence, transportation and engineering industries.

M/s. Mukand Ltd. has proposed to set up an Integrated Steel Plant capacity in 0.7 MTPA at

Village- Kanakapur, Taluka & District- Koppal, Karnataka.

The total land area required for the proposed project is approximately 300 acre. The

proposed project site is easily approachable and is located near the National Highway No.

63. The coordinates of the site is 150 19.720’ N and 760 15.540’ E.

In Integrated Steel Plant and basic raw materials required for its operation are Iron Ore,

Coking Coal, Limestone and Dolomite. It is proposed that in the Integrated Steel Plant Billets

and Blooms in sizes of 160 x 160 mm to 280 x 320 mm shall be produced. Cast Billets will be

rolled into Wire Rods and Bars. It is also proposed to roll heavy section bars from Blooms.

Total fresh water requirement for the project will be 18 MLD, which will be sourced from

downstream of Tungabhadra Reservoir. Approval has been obtained vide Government of

Karnataka letter no WRD.15/MTP/2013 dated 22 December 2015. Power requirement for the

proposed project will be 60 MW, out of which 30 MW will be sourced from the proposed

Captive Power Plant by captive power generation from waste gases of Blast Furnaces and

Coke Ovens and 30 MW from KPTCL/GESCOM.

The project will generate direct employment both during construction of about 1000 persons

and during operation i.e. post construction phase locally and regionally, it is expected that

730 Managers, Supervisor, Skilled and Unskilled workers will be required.

Appropriate pollution control measures will be installed to abate air pollution. Waste water

generated from the process will be reused in the process or used in gardening and dust

suppression after proper treatment. There will be significant socio-economic and

infrastructure development due to this project. Overall the project will have a positive

impact on socio-economic environment.


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2.0 INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

M/s. Mukand Ltd. proposes to set up an Integrated Steel Plant of 0.7 MTPA capacity in

Village- Kanakapur, Taluka & District- Koppal, Karnataka.

Established in 1937, Mukand Ltd. (Formerly known as Mukand Iron & Steel Works Ltd.), is one

of the largest producer of ‘Alloys and Special Steels’ and Stainless Steels in the country

meeting the requirements of Original Equipment Manufacturers (OEM) for automobiles, auto-

component industries as also of railways, defence, transportation and engineering industries.

It is also the largest manufacturer of stainless steel long products, bulk of which is exported to

international markets. Mukand is a part of the Bajaj Group and Mr. Niraj Bajaj is the Chairman

and Mr. Rajesh Shah is the Co-Chairman of the company.

Mukand Ltd. desires to set up an Integrated Steel Plant of capacity 700,000 Tons / Year of

rolled long products in phases. However, initially the rolling capacity will be 550,000 Tons /

year. The Steel Plant shall be erected in modular form so that the capacity can be increased

in a phased manner. Mukand Ltd. desires to set up the plant in Karnataka next to the existing

Hospet Steels Plant. This will facilitate in transportation of the basic raw materials viz. Iron Ore,

Metallurgical Coke, Coal etc.

Presently Mukand produces more than 400 grades of steel and is approved by the original

automobile equipment manufacturer to supply steel to the manufacturers of Auto

components, High Tensile Fasteners, Cold Forge components, Industrial Bearings, Automobile

Coil Springs, Industrial Chains and Bright Bar industries.

The company is ISO 9001, ISO 14000 and ISO/TS 16949 compliant and is among one of the

leading practitioners of Total Productive Maintenance (TPM) system, which is increasingly

being adopted by all major manufacturing companies worldwide. Mukand’s products are

manufactured to international quality standards.

2.2 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT.

M/s Mukand ltd. has proposed to set up Integrated Steel Plant of 0.7 MTPA capacity in

Village- Kanakapur, Taluka & District- Koppal, Karnataka. The process route envisaged is Blast

Furnace, E.O.F, Ladle furnaces, Vacuum degassing, Continuous Casting Machine, Wire Rod

cum Bar mill.

This liquid iron from the Blast Furnace in the form of hot metal shall be poured in the Energy

Optimizing Furnace (EOF) and necessary Ferro alloys and other ingredients added in the


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Ladle Furnaces and thereafter cast through the continuous casting machine there by

manufacturing various grades of steel. These Blooms and Billets shall then be rolled to the

required sizes and forms.

The proposed Integrated Steel Plant of 0.7 Million MTPA capacity shall be set up in Village-

Kanakapur, Taluka & District- Koppal, Karnataka on a total land area of approx 300 acres.

The company intends to use Iron ore which is abundantly available in Bellary-Hospet sector

and imported and indigenous coal from South Africa, China, Indonesia and Singareni

Collieries Company Limited (SCCL), Andhra Pradesh.

2.3 Production Capacities of the proposed project:

Mukand Ltd. has proposed to set up a Integrated Steel Plant of 700,000 Ton / Year capacity

of rolled long products in phases. However initially rolling capacity will cater to 550,000 Tons/

Year.

Table 1.1 Production Capacities Sr. No.

Product Phase I (MT/Year)

Phase II (MT/Year)

Total (MT/Year)

1 Wire Rods Cold heading wire rods, low carbon/Boron steels, special steel wire rods i.e. semi free/free cutting/Alloy steels/high carbon/mild steel rods

550,000 550,000

2 Bar Products Special steel bar products

150,000

150,000

Total 550,000 150,000 700,000

2.4 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND REGION.

One of the most useful and versatile material, steel is considered to be the backbone of

human civilization. As the steel industry has tremendous forward and backward linkages in

terms of material flow, income and employment generation, the growth of an economy is

closely related to the quantity of steel used by it.

Steel has been one of the oldest industrial sectors in India. It has also been the first to get

liberalized and controls lifted partially in 1991. There have been massive capacity additions

by all steel majors and several new groups made foray into primary and secondary steel

market in the first phase of liberalization in early 90s. The major costs in steel making are the

costs of Iron Ore, Metallurgical Coke, Limestone, Coal and Power. While the country is rich in

http://scclmines.com/�




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iron ore and limestone, its quality of coal is poor and power costs are high. The industry

enjoys inherent advantages in terms of availability of raw material and cheap labour.

India is the 3rd largest producer of steel in the world accounting for production of 89.58

million tons of crude steel in the Calendar year 2015. It also holds the third position in

consumption of steel. Thus there is great potential of steel industry in India. Honorable Prime

Minister Shri Narendra Modi has envisaged the growth of steel sector to attain a production

capacity of 300 Million Tonnes by 2020, hence in order to achieve this capacity, it is essential

to create the facilities based on local resources to produce steel.

In view of these facts, the proposed project is envisaged as a Integrated Steel Plant with

Coke Oven plant, Blast Furnace, E.O.F., Ladle Furnaces, Vacuum Degassing, Billet/Bloom

Continuous Casting Machine, Wire Rod cum Bar Mill and Captive Power Plant. All these

production technologies make the project a better energy efficient project due to which a

substantial amount of Green House Gas (GHG) emissions would be avoided or reduced than

the baseline emission.

2.5 DEMAND AND SUPPLY GAP

The scenario of Steel Industry is clearly looking upward and the latest data on Steel Industry is

as follows:

An overview of Indian Steel sector-

• Rapid rise in production has resulted in India becoming the 3rd largest producer of

crude steel and the largest producer of Sponge Iron or DRI in the world.

• As per the report of the Working Group on Steel for the 12th Plan, there exist many

factors which carry the potential of raising the per capita steel consumption in the

country, currently at 59.4 kg per annum in 2014. These include among others, an

estimated infrastructure investment of nearly a trillion dollars, a projected growth of

manufacturing from current 8% to 11-12%, increase in urban population to 600 million

by 2030 from the current level of 400 million, emergence of the rural market for steel

currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman,

Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.

• When the global steel industry is witnessing slow growth, India is the only exception

with 6.7% growth in demand in 2015. If Indian Economy is expected to grow at 8-9% in

coming years, the demand potential for steel is very high. The High Level Committee

on Manufacturing (HLCM) under the Hon. Prime Minister has set a target of raising

annual crude steel making capacity to 300 million tonnes by 2025 -26.


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Major Objectives of the National Steel Policy 2012 are as follows:

• To attract investments in Indian steel sector from both domestic and foreign sources and

facilitate speedy implementation of investment intentions on board so far so as to reach

crude steel capacity level of 300 million tonnes by 2025-26 to meet the domestic

demand fully.

• To ensure easy availability of vital inputs and necessary infrastructure to achieve a

projected production level of 275 million tonnes by 2025-26.

2.6 IMPORTS V/S. INDIGENOUS PRODUCTION

Iron ore and non-cocking coal are available in abundance in India, but coking coal

reserves are not very much. Thus steel production facilities added during the last 10 years

in India are well established based on Coal Rotary Sponge Iron Kilns. Prior to

implementation of the Sponge Iron Kiln based steel making the gap between demand

and supply was fulfilled by import of steel. The Chinese manufacturers are giving tough

competition to Indian steel producers because of their cheaper production cost.

Therefore, in order to face the competition being poised by the Chinese manufacturer, it

is important to provide good quality washed coal to existing Sponge Iron Plants in India

and also to provide them with good quality Iron Ore / Pellets.

In view of this, it is necessary to have good quality washeries. The Indian infrastructure

sector is likely see a massive growth due to increasing economic status.

2.7 EXPORT POSSIBILITY

Export of Steel is always possible, the Government of India is also encouraging export of

steel, and however most of the quantity will be domestically consumed. The world steel

market is for about 1500 Million Tonnes, out of which about 50% is being produced by

China. But, China is in the process of cutting excess capacity and reducing its

production in coming years. It offers a room for Indian steel manufacturers to export. by

increasing its production in an energy efficient manner.

2.8 DOMESTIC/EXPORT MARKETS

While the demand for steel will continue to grow in traditional sectors such as infrastructure,

construction, housing, Automobiles, steel tubes and pipes, consumer durables, packaging,

and ground transportation, specialised steel will be increasingly used in hi-tech engineering

industries such as power generation, petrochemicals, fertilizers, etc. The new airports and

railway metro projects will require a large amount of stainless steel.


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Domestic market with real estate, infrastructure project, industrial projects will require steel

which is estimated to be around 80 million tonnes per annum. The estimated growth in

infrastructure is likely to increase the demand of steel to more than 150 million tonnes by the

year 2020. In view of this it is required advance planning be made for creating the facility

and infrastructure to meet this demand. The domestic market as well as export market both

will require good quality steel, produced with minimum energy consumption and minimum

cost of production.

2.9 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT.

The total manpower required for the proposed project will be around 730 permanent

executives during operation of the Plant. Employment generation due to the project is direct

& indirect. Local people will be employed as per their qualification and skills.

Phase No of Employees

Construction phase 1000 (tentatively inc. contract persons)

Operation phase 730 plus Persons on Contract

3. PROJECT DESCRIPTION:

(i) Project Location & Connectivity

M/s Mukand Limited has proposed to set up the Integrated Steel Plant of 0.7 MTPA

capacity in Village- Kanakapur, Taluka & District- Koppal, Karnataka. The total land area

required for the proposed project is approx. 300 Acre. The coordinates of the site is 150

19.720’ N and 760 15.540’ E.

The proposed project site is easily approachable. The nearest Highway is NH-63

(adjacent to the Plant) and NH-13 (13.5 Km to the East). The nearest cities are Koppal

and Hospet, which are situated at a distance of 11 km and 16 km in the west and east

directions respectively. The nearest Railway station is Ginigera at a distance of 1 km, NW.

Railway line is 0.5 km from the Plant in northern direction. The site is about 11 kms by rail

from Koppal. The Tungabhadra reservoir is at a distance of 5.2 km in south western

direction. Nearest Airport is Hubbali which is 125 Km in West. The company has chosen

this site mainly due to its proximity to raw material sources and also better access to

market. Also four Sea ports are within 400-700 km distance.


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(ii) Topography (along with map): Topography of the area is plain and undulating at some

places. Topographic map of the study area is enclosed as Annexure Toposheet.

(iii) Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including

area under CRZ)), shortest distances from the periphery of the project to periphery of the

forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from

the HFL of the river), CRZ, In case of notified industrial area, a copy of the gazette:

The Land acquired for the proposed project is arid and rocky will be converted for

industrial use.

There are no forests, national parks, wild life sanctuaries and eco sensitive zones situated

in the 10 km study area.

(iv) Soil classification: The proposed project site has rocky soil. The Taluka has some Rocky

Mountains with xerophytic vegetation. The type of rocky soil in the taluka is clayey-loamy

in scattered areas.

(v) Climatic data from secondary sources:

Koppal district experiences a semi-arid type climate, characterized by hot summer and

low rainfall. It is cool and pleasant during major part of the year except during the

summer months of March to middle of June. The coldest period is December to January

minimum temperatures reaches up to 16°C and maximum reaches 45°C during hot

summer during which period the district is characterized by dryness for the major part of

the year. Because of less rainfall the monsoon season is pleasant. The annual normal rain

fall is 571.92 mm and normally rain commences from June and continues up to

November. Heavy rainfall is received during the months of September and October,

about 65% of which is from south west monsoon with normal average rain days of 40 in a

year. (Source: A Report of CGWB)


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3.1 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC LOCATION, AND PROJECT

BOUNDARY & PROJECT SITE LAYOUT) WITH COORDINATES.

Figure 3.1: Location Map of the Project site


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Figure 3.2: Google image of the proposed project site covering 5 Km radius


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Figure 3.3 Schematic diagram/ Layout plan of the proposed project


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3.2 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECT IF ANY.

M/s Mukand Limited has proposed to set up an Integrated Steel Plant of 0.7 MTPA capacity

in Village- Kanakapur, Taluka & District- Koppal, Karnataka. The Project shall have MBF, Coke

Oven Plant, EOF, Ladle Furnace, Vacuum Degassing, Billet & Bloom Caster, Wired Rod/Bar

Mill, Sinter Plant and Captive Power Plant (2x15.0 MW).

3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED

SITE, PARTICULARLY THE ENVIRONMENTAL CONSIDERATIONS GONE INTO SHOULD BE

HIGHLIGHTED:

Since the selected site is strategically located, no alternate site has been considered for the

proposed project.

The project area is indicated in the Layout Plan/Schematic Diagram, which has been

earmarked for industrial use.

3.4 PROJECT DESCRIPTION WITH PROCESS DETAILS

3.4.1 COMPONENTS OF STEEL MANUFACTURING PROCESS:

Table 3.1: Plant capacity & equipments (for 700,000 MT/year)

Sr. No.

Main Equipment Capacity For Phase I

(Nos)

For Phase II

(Nos)

Total (MT)

Per day

(phase I+ phase II)

Remarks

1. Blast Furnace 2x450M3 1 1 2200 60-65%Sinter

feed + P.C.I 2. DRI - - - 300 Purchased from

local plant 3. Coke Ovens - - - 700 Balance

requirement will be purchased

4. E.O.F 70T 1 - 2200 5. Ladle furnace 2x70MT/1

5MVA 1 1 - With alloy feeding

systems and 5 deg Celsius /min heating rate

6. Vacuum degassing

2x70T 1 1 -


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7. Billet/Bloom Caster

2x12/20 radius to

cast 160x160m

m to 4 strands

1 1 - Sizes depending upon product mix for wire rod / Bar mill

2x280x320mm 4 strands

8 Wire rod Mill/Bar

Mill 120 MT/Hr 1 2200T 700,000 TPA of

Wire Rods & Bars 9 Sinter Plant 2x50 M2 1 1 2400

Tonnes -

10 Oxygen Plant 2x175 Tonnes

1 1 350MT per day

For EOF shop & 2% enrichment

11 Power Plant 2x15MW 1 1

1

30MW To produce power from waste gases

The iron ore with high Iron content mixed with metallurgical coke is charged into the blast

furnace from the top along with fluxes in a predetermined proportion. The heated air rising

up from the bottom starts combustion of the coke to yield carbon monoxide. The carbon

MANUFACTURING PROCESS

3.4.1 Pig Iron Plant

Major raw materials for the pig iron manufacturing process are iron ore, coke and small

quantities of dolomite, lime stone, etc. The raw material received in the plant is handled

using mobile equipment and conveyor system. All the required raw materials are stored in

day bins for 24 hr requirements. Coke below 50 mm is conveyed to a screen for further

screening of 6 mm and coke size between 6-15 mm is conveyed back to one of the day

bins. A weighing and batching system ensures the dosing of 6 to 15 mm coke along with ore.

Fluxes, Manganese ore and quartzite feeds are controlled through vibro feeder. Depending

on the sequence signal, the raw material is discharged to charging conveyor to be dropped

into rotary hopper.

Blast Furnace (BF) is the basic unit in a pig iron plant. The blast furnace process consists of

charging iron ore and coke (as fuel), lime stone and dolomite (as fluxing material) into the

top of the furnace and blowing preheated air near the bottom for burning the coke and

providing the heat required for melting of the charge coming down. The hot air is generated

in Metallic Blast Pre-heaters (MBPs) and introduced into the blast furnace through tuyeres, at

the bottom.


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monoxide gas that rises up the column of the charge reduces the iron oxide. The reduced

iron on reaching the bosh starts to melt due to the high temperature encountered in this

zone into molten iron and slag and drops into the hearth of the furnace. In the hearth the

slag and metal get separated. The molten iron accumulates at the bottom and on top of it

molten slag layer settles. At regular intervals the accumulated molten metal is tapped in

ladles and sent for steel making. The molten slag is granulated with high-pressure water jet

and collected separately. The top gas from MBF units is conveyed to Gas Cleaning Plant

(GCP) where dust is removed from the top gas by wet scrubbing system. The flow sheet for

Pig Iron and Steel making is shown in Figure – 3.4.

3.4.2 Sinter plant

To utilize the fines generated during mining and processing of calibrated iron ore, a sinter

plant shall be set-up. Sinter plant shall also use all waste material of the plant i.e. coke fines,

mill scales etc. sinter is known to give higher productivity and lowers the consumption of

coke in the blast furnace.

3.4.3 Coke ovens

Productivity is decided by coke input and as such it is proposed that coke shall be produced

at the plant site by bringing coal. Coke oven plant is proposed to be set up for blast

furnaces. The coke ovens shall be non-recovery type and shall produce with sized dry coke

of 25-80 mm size (mean size of 50 mm). The coke produced shall be with stamp charging

technology so as to give higher density thus leading to higher productivity of the blast

furnaces and lower consumption of 500 kg/MT of gross and dry coke.

3.4.4 Proposed Blast Furnace Plant

The blast furnace shop will be provided with a conveyorized stock house with screening

facilities for coke and iron ore. All the charge materials will be weigh-batched in

predetermined quantities automatically and charged to the blast furnace through a

conveyor system. The furnace is provided with bell less top charging system, hot blast stoves

of internal combustion chamber type, cast house with one tap hole for iron and one slag

notch. A fleet of 45 tonnes open top hot metal ladles is provided. The hot metal produced in

the Blast Furnace shall be transported to Steel Making shop by ladle transfer car. Surplus hot

metal, if any, shall be cast into pigs in existing Pig casting Machine. Slag produced from Blast

Furnace shall be granulated in slag granulation plant. A cast house slag granulation plant

with Grab bucket crane for loading of granulated slag into trucks shall be provided. An

emergency dry slag pit shall be provided to handle emergency situations. The blast furnace


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gas will be cleaned in dust catcher and gas cleaning plant and distributed to various

consumers.

It is proposed to install two ‘S’ type casters to cast (Billets) of size 160 x 160 mm and (Blooms)

of 280 x 320 mm size. All products shall be cast with ladle to tundish and tundish to mould

shroud with mould flux lubrication. The casters, shall be of 4 strands so as to cast heat in 50 -

55 min cycle with high speed casting. The casters shall be designed with turret to have long

sequences and flying tundish practice. Casters shall have Auto Mould Controller and Electro

Steel Manufacturing Process

3.4.5 Energy Optimizing Oxygen Furnace

The oxygen process is the most common process for producing steel. The Energy-optimizing

oxygen furnace (EOF) involves this process using combined submerged (bottom) and

atmospheric (top) blowing. The hot metal from KSL unit is taken into the EOF; the 20-30%

scrap is then added into the hot metal. The necessary fluxes (ferro-alloys, calcined lime, iron

ore) are also added to the bath. Oxygen is blown into the bath through water-cooled lances

using combined bottom and top blowing.

EOF will be designed to have a blowing time of less than 20 minutes and overall cycle time

less than 40 minutes per heat. During blowing operation, oxygen oxidizes iron into iron oxide

and carbon into carbon monoxide. The iron oxide immediately transfers the oxygen to the

tramp elements, which leads to formation of reactive slag. As blowing continues, there is a

continuous decrease of carbon, phosphorous, manganese and silicon within the melt. The

refining process is completed when the desired carbon content is attained. The steel is

tapped into the Ladle Furnace by a transfer trolley. The slag is discharged into the slag pot.

3.4.6 Ladle furnace and Vacuum Degassing Unit

The Ladle furnace acts as a buffer between EOF and Continuous Casting Machine. It is

utilized to maintain high levels of steel cleanliness, desulphurisation and accurate

temperature control. The required temperature is maintained with the help of small

electrodes, while the melt is homogenized by introduction of inert nitrogen/ argon gas. The

ladle is then lifted and taken to Vacuum Degassing unit. Vacuum Degassing refines the

molten steel by removing unwanted hydrogen and nitrogen gases. The molten metal ladle

from LF is placed under vacuum generated by multiple stage steam ejectors. After sampling

of the steel and temperature measurement, the ladle is shifted to continuous casting

machine. The Vacuum-degassing unit utilizes steam generated by a boiler run by furnace oil.

3.4.7 Continuous Casting Machines


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Magnetic Stirrer to achieve superior internal quality of Billets / Blooms. Large Size Tundish with

T shape and dams shall be designed to get high level of cleanliness with no entrapment of

non-metallic macro inclusions. Caster shall cast 20 heats / day with desired quality level so

that no Billet conditioning is required before rolling.

3.4.8 Billet / Bloom Inspection Area

Sample cutting and inspection facility to control the quality shall be provided in the Caster

Bay. This facility shall provide constant feedback to the shops.

3.4.9 Wire rod / Bar Mill facility (1 Nos)

It is proposed to roll 60,000 MT per month of Billets of 160 x 160 mm in Bar cum Wire rod mills (1

nos). The mill shall be designed to roll 5.5 to 36.0 mm dia. size in coil form of 2 MT each and

20mm to 60mm dia. in straight lengths.

A walking beam type furnace with heating rate 120 MT / hour having 10.5 Meter length to

accommodate 160 x 160 mm cross section shall be designed. Mill shall roll wire rods / bars at

an average of 110 MT / hour. At 80 % utilization of the Mill, it shall produce 2200 MT / day of

finished products.

The Wire rod mill shall have roughing, intermediate and two finishing blocks to finish from 5.5

to 20mm dia. through Block Mill and balance through Garret route.

Mill shall be designed to have 80 to 100 m walking beam type cooling bed to roll 20 mm to

60mm dia. bars in straight lengths. Cold shears shall cut the bars in specific lengths.

Mill shall have conveyer to inspect end cuts, strap and weigh the coils before unloading for

final dispatch. As such, no off line activities shall be required for handling of coils.

Part of the product, which require heat treatment shall be transferred to heat treatment

section.

Bars thus produced which need crack detection / MPI test shall be shifted to the Bar Mill

Inspection area for descaling (by straightening), magnaflux particle testing, other inspection

and final strapping before dispatch.

3.4.10 Lime Kiln

To produce high quality steel for stringent application, good quality lime is required for the

steel Plant. The consumption shall be 150 MT / day, hence it is proposed to have 2 Kiln of 100

MT / day. Lime stone with 53 – 55 % CaO content shall be converted to Lime with 92 % min.

CaO and 4 % Max Loss Of Ignition.


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3.4.11 Captive Power Plant

It is proposed to set up a power plant by utilizing waste gases of coke ovens and blast

furnaces to produce 30 MW power by using waste gas recovery boilers and turbines. This

shall supplement the power drawn from the state electricity grid. The process flow diagram

of Power Plant is enclosed as Annexure III in additional Annexures.


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Fig. 3.4 - Schematic Process flow for Iron & Steelmaking

Blooms /Billets Billets

DRI MBF Return Scrap

Energy Optimizing Furnace (EOF)

Ladle Furnaces with Alloy Feeding / Injection

Vacuum Degassing

Continuous Casting Machine

Continuous Bar Mill

Wire Rods /Coils / Straight Lengths

Round Bars

Dispatch

Iron Ore Coal

Iron Ore Coke Flux

Hot Metal


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3.5 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY LIKELY SOURCE MARKETING

AREA OF FINAL PRODUCT/S,MODE OF TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT.

Raw material- Requirement, Storage & Handling System

The proposed requirement of raw materials in the manufacturing of steel units is detailed in

the Table below.

Table – 3.2 Raw Material Consumption

Sr. No. Raw Material Quantity (Tonnes)/Day

1. Iron Ore 1,581,300 MT/Year 2. Coking Coal 350,000 MT/Year 3. Limestone 200,000 MT/Year 4. Dolomite 70,000 MT/Year

Miscellaneous small quantities of Quartz, Coke breeze etc. shall also be required and the

same shall be sourced suitably.

3.5.1 Sources of Raw Materials

The major raw materials as indicated above are iron ore, limestone and coke. The iron ore

mines in Bellary-Hospet area are the main source for iron ore, which shall be transported by

road to the plant. Limestone will be brought from Bagalkot, Karnataka (Approx. 200 km) by

road. Coke shall primarily be imported and transported from the nearest port by road. Other

required raw materials will be obtained locally and transported by road to the plant.

3.5.2 Receipt, Storage and Handling of Raw Materials

Raw materials received in tripper trucks/road dumpers will be unloaded either at designated

storage area of respective material or in tripper truck unloading pit directly. Raw materials

unloaded in storage area will be stacked in heap by bulldozers. Reclaiming of raw materials

from stacked heap will be carried out by pay loaders for transportation to tripper truck

unloading pit by tripper trucks/road dumpers. Onward transportation of raw materials from

the above pit to BF stock house will be done through conveyor belts.

The raw materials transported from storage area will be distributed into respective bunkers

through a reversible shuttle conveyor belt envisaged at the top of stock house. The holding

capacity of bunkers will be adequate to cater to 2-shifts requirement of raw materials for

blast furnace. Screening of coke, nut coke and iron ore will be carried out in the BF stock

house. Screened coke, nut coke, iron ore and additives will be conveyed to blast furnace


22

top through weigh hoppers and charging belt conveyors.

Fines collected from screens in BF stock house will be stored in a separate fine storage

building by belt conveyors. Fine coke (0-25) mm will be further screened in the fine collection

building for coke to segregate coke of 0-6mm & 6-25 mm. Nut coke (6-25mm) will be sent

back to BF stock house through storage yard by trucks whereas fines (0-6 mm) will be

disposed off by truck.

For transportation of raw materials a covered conveyor from the storage yard to the stock

house is proposed.

The raw materials required for the production of the sponge iron are the iron ore fines, coal,

limestone and bentonite. The Fe content of Iron ore should preferably be 65% and above

with Gangue content below 5%. In respect of coal the fixed carbon should be 57% or higher,

with ash not more than 15%. Limestone, which is used as a desulphuriser, should have a

Calcium oxide content of above 45%.Trucks will be used daily for the transportation of raw

materials and finished products.

3.6 RESOURCE OPTIMIZATION/RECYCLING AND REUSE ENVISAGED IN THE PROJECT IF ANY

SHOULD BE BRIEFLY OUTLINED:

The waste water generated from the process will be treated as per suitable technique used

in Effluent Treatment Plant. Cooling tower and Boiler blow down water will be continuously

re-circulated in the cooling water circuits, heat exchangers and discharged to the guard

pond. DM backwash, cooling tower and boiler blow down will be neutralized in a

neutralization tank and used for gardening and dust suppression. Domestic effluent will be

treated in sewage treatment plant.

3.7 AVAILABILITY OF WATER AND POWER AND THEIR SOURCES

3.7.1 WATER REQUIREMENT

Total water requirement for the proposed project will be 18 MLD. Source of Water is from

downstream of Tungabhadra Reservoir. Tungabhadra River is a perennial river and caters to

the need of irrigation and potable water. Water from downstream of reservoir will be drawn

within the sanctioned capacity of 18 MLD by the Government of Karnataka’s letter no.

WRD.15/MTP/2013 dated 22 December 2015.

A new reservoir capacity of 650,000M3 is proposed to be constructed.


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Table 3.2 Water Balance Table

Sr. No. Type of use Water requirement

(M3/Day)

1. Domestic, if any 233

2. Industrial a. R.O/D.M

233 b. Boiler c. Process 2097

d. Cooling Tower (fresh) 3262

e. Cooling Tower (Reuse) 233

f. Other activities (including washing) 408

3. Total Ind. Water(Fresh) 5534

4. Total Ind. +Domestic Water (Fresh) 5767

5. Total (Reuse) 233

6. TOTAL WATER 18000 7. Waste water Generation, m3/Day 583

The total Waste water generation will be 583 KLD. Domestic & Trade effluents shall be

treated in Sewage Treatment Plant & Effluent Treatment Plant similar to the interlinked

Unit. Treated water will be reused for process, dust suppression and gardening purposes.

There will be no discharge of water outside the plant premises.

3.7.2 POWER REQUIREMENTS, SUPPLY AND SOURCE:

The electrical and instrumentation has been so designed to meet the continuous operation

of the plant. As the plant will be running 24 hrs in three shifts, the necessary power supply,

illumination, instrumentation and control system is envisaged.

Total Power requirement will be 60 MW. Out of which 30 MW shall be met by captive power

generation from waste gases of Blast Furnaces and Coke Ovens and rest of the 30 MW will

be sourced from the state utility grid (KTPCL/GESCOM).

Three no. of D.G. sets of 1250 KVA each will be used for power back-up.

Table 3.3 power requirement

Sr.

No. Source

Phase I Phase II Total

1 Captive Power Plant 15 MW 15 MW 30 MW


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3.8 WASTE GENERATION AND THEIR MANAGEMENT AND DISPOSAL

3.8.1 SOLID WASTE MANAGEMENT:

The various types & quantities of solid and hazardous wastes generated from the plant are

indicated in Table – 5.4. Hazardous wastes generated are handled as per Hazardous Waste

Management & Handling Rules, 2008.

Table 3.4 Waste (Hazardous & Non-Hazardous) details:

S. No

Type of waste

Classification as per

Schedule I

Proposed Quantity

Disposal

1

Used Oil 5.1 14 KL/Annum

Sold to HW Authorized parties.

Oil Soaked Cotton Waste

5.2 0.3 MT/Annum Sold to HW Authorized parties.

2 ETP Sludge NA - ETP Sludge is used in Blast Furnace

3 Slag Non-Hazardous 1,40,000 TPA

Reuse for Brick making/road making/dump in low lying areas/sold to authorized parties.

3.8.2 DETAILS OF THE CONTROL EQUIPMENTS FOR AIR POLLUTION (TABLE 3.5)

Sr. No. Source Capacity Control Equipments Performance

Efficiency

Stack Ht. (m)

1 MBF 2x450m3 One Wet type GCP having dust catcher, saturator, 2 stage venturi scrubber, cyclone separator & sludge

97% 30

2 Total Demand 33 MVA 27 MVA 60 MVA

3 Power (Max demand)

from Grid-

KPTCL/GESCOM

18 MVA 12 MVA 30 MVA

4 Consumption (million

units/month)

18 12 30

5 D.G. Set (Back-up) 1250x3 KVA - 1250x3 KVA


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thickener.

2 Energy Optimizing Furnace

70 T Wet Type GCP having Quench Chamber, Venturi, Cyclone Separator, Sludge Thickener.

97% 39

3 Rolling Mill Reheating Furnace

- Chimney

- 54

4 Boiler in Vaccum Degassing

70 T Chimney

- 52

5 Power Plant Boiler

2x15 MW Chimney - 47

3.8.3 INDUSTRIAL WASTE WATER MANAGEMENT:

TABLE 3.6 WASTEWATER SOURCES AND ITS TREATMENT

Waste Water Sources Treatment and Reuse

DM Plant/ Softner Plant

Regenration

Entire effluent is recycled to Pig Casting Machine

and Slag granulation Process after neutralization,

clarification and aeration

Filter Backwash Recycled to slag granulation process

Energy Optimising furncace

(Evaporation/Blowdown)

Blowdown is collected in Guard pond and reused

for dust suppression & green belt development

Gas Cleaning Plant




Vaccum Degassing




Machine cooling / Mould

cooling




Waste water from Rolling Mill Blowdown is collected in Guard pond and reused


Sanitary Waste Treated in STP and used for green belt

development within the plant premises


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Figure 3.5: ETP plant layout

The Wastewater from canteen is screened in Screen chamber to remove coarse solids

and floating matter in float trap before taking sewage to the aeration tank Sewage is

Pumped to Aeration Tank using submersible pump. In aeration tank sewage is treated

with biological method using extended aeration activated sludge process where

Sewage is treated with microbes which eat up organics and reduce organics (BOD/

COD) in sewage. The oxygen required for growth of microorganism is supplied by surface

aerator. The growth in microbial population takes place and biofloc are formed. The

biofioc with treated sewage is taken to secondary settling tank where biofloc settles and

clear water overflows to secondary treated sewage storage tank. To keep the microbial

population in aeration tank constant sludge from secondary settling tank is recalculated

Sewage Treatment Plant

Process

The sewage treatment plant is designed for treating the sewage and canteen

Wastewater. The system adopted for sewage treatment is extended aeration activated

sludge. The system consists of bar Screen – Manually Cleaned (near Canteen), Float Trap

(Near Canteen), Sewage Sump, Aeration Tank, Secondary Setting tank, Secondary

Treated Water Storage Tank.

System Working


27

to aeration tank using Sludge Recirculation pumps. Excess bio-sludge is dried on sludge

drying beds. The treated sewage from secondary storage tank is disinfected in Storage

Tank prior to taking for reuse for reuse for Gardening.

Figure 3.6: STP plant layout


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4.0 PLANNING CONCEPT (TYPE OF INDUSTRIES, FACILITIES, TRANSPORTATION ETC) TOWN AND

COUNTRY PLANNING/DEVELOPMENT AUTHORITY CLASSIFICATION:

4.1 BASIS OF PLANNING:

The active manpower estimate is based on production technology proposed level of

mechanization and automation, the layout of the plant, operating shifts for the various plant

units etc.

4.2 POPULATION PROJECTION:

There will be temporary population projection due to direct and indirect employment to the

nearby people.

The Project area is surrounded with Sponge Iron, Steel & other industries viz. Hospet Steels Ltd.

(Integrated Steel Plant), Xindia Steels Limited (Pellet Plant), Harekrishna Sponge (Sponge Iron

plant), HRG (Sponge Iron plant), Dhraudesh (Sponge Iron plant), Hospet Ispat (Sponge Iron

plant), Scan Steels (Sponge Iron plant), Ultratech (Cement Plant), Kirloskar Ferrous Limited

(Pig Iron Plant).

4.3 LAND USE PLANNING (BREAKUP ALONG WITH GREEN BELT ETC)

Total Land acquired for the proposed project is 300 acre/1,213,800 m2. Land is owned by the

Company for Industrial purpose.

TABLE 4.1 land use pattern of the project site

Sr. No.

Description

Area (m2)

1 Plant 157353

2 Storage 312981

3 Utility 123038 4 Administrative Building 6988 5 Effluent treatment plant 1290 6 Green belt 473073

7 Parking 19993

8 Colony & Open area 119084

Total 1,213,800


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4.4 ASSESSMENT OF INFRASTRUCTURE DEMAND

M/s. Mukand Ltd. will provide utilities and other infrastructural facilities for its employees in

the proposed project. All the employees and workers will be sourced from nearby villages

hence no residential colony is proposed. All other infrastructure facilities like market;

education; communication etc are well developed in the nearest area. Mukand Ltd. has

assessed the infrastructural demand of the study area, based on the detailed plan of

action as part of proposed CSR activities with a budget of Rs 10 Lac is proposed.

M/s. Mukand Ltd. as a corporate body has taken up following Social Development works:

• Providing Medical facilities for Primary Health Centre in near by villages.

• Providing Education implements to Primary School in near by villages.

• Providing School uniforms, Books, Sports facilities to the school children of near by villages.

• Providing Ambulance facilities for nearby villagers.

• Providing funds for Cultural activities & community celebrations to nearby villagers from

Sponge Iron Manufacturers Association.

4.5 SOCIAL COMMITMENT PLAN

Socio-economic development activities done by Mukand ltd. (Unit-I) in the surrounding area

are listed below;

• Establishment of RO drinking water treatment plant in Kanakapur.

• Construction of concrete roads and drains at Ginigera.

• Free eye check up camp along with distribution of spectacles for lower income

groups in Ginigera and Kanakapur.

• Provision of solar lanterns to local high school students at Ginigera.

• Provision of desks, benches and utensils to local village schools

• Provision of tuition fees for students scoring low marks in English, Mathematics and

Science in SSLC Ginigera High School.

• Development of health, hygiene and nutrition programs for villagers.

Trucks are used for transportation of raw materials and finished products which are covered

with tarpaulin. Proper measures are taken for controlling pollution.


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5.0 PROPOSED INFRASTRUCTURE.

5.1 PLANT AREA

All plant units, office building, stores, laboratories etc. will be provided with all amenities.

5.2 RESIDENTIAL AREA:

All the manpower in the proposed project is sourced from the neighboring villages hence

no colony/ residential area is proposed in the project.

5.3 GREEN BELT

Green belt will be developed in and around the proposed project site in an effective way as

per prescribed norms by CPCB to check pollutants and their dispersion into surrounding

areas. The degree of pollution attenuation by a green belt depends on its height and width,

foliage surface area and density. The main objective of green belt is as follows:

i. Mitigation of impacts due to fugitive emissions caused by vehicles

ii. Attenuation of noise levels

iii. Ecological restoration

iv. Creation of aesthetic environment

5.4 SOCIAL INFRASTRUCTURE

All the infrastructural facilities like market; education; communication etc are well

developed in the nearby area. Mukand Ltd. has assessed the infrastructural demand of

the study area.

5.5 CONNECTIVITY

The proposed project site is easily approachable. The nearest Highway is NH-63

(adjacent to Plant) and NH-13 (13.5 Km, East). THE nearest cities are Koppal and Hospet,

which are situated at a distance of 11 km and 18 km in west and east directions

respectively. The nearest Railway line is Ginigera at a distance of 1 km, NW. Railway line is

0.5 km from the Plant in northern direction and the nearest railway station is Ginigera. The

site is about 10 km by rail from Koppal. Nearest Airport is Hubbali which is 125 Km in West

5.6 DRINKING WATER

The source of water for the project will be supplied by Tungabhadra Dam. Previous

studies reveal that, for the ground water quality is meeting with Drinking Water standards.

The company proposes to use water for domestic purpose as well as Drinking water is

made available for all the workers in the plant premises.


31

5.7 SEWERAGE SYSTEM

The domestic / canteen wastes are treated in the STP, which consists of equalization/

neutralization unit, aeration tank followed by settling pond. The treated water, after

confirming to prescribed norms, is used for greenbelt development. The domestic waste

from the colony is treated separately in septic tank and soak pits. A Sewage Treatment

Plant has also been proposed for the colony.

5.8 INDUSTRIAL WASTE MANAGEMENT

Proposed project will not be major source of hazardous waste generation. However the

substances that are hazardous are spent oil etc. solid wastes generated will be reused in

the process or sold to authorized vendors.

5.9 POWER REQUIREMENT & SUPPLY/ SOURCE

The total power required will be 60 MW, which will be met from Captive Power Plant by

support of 30 MW and rest of the requirement of 30 MW will be met by state electricity grid

(KTPCL/GESCOM).

6.0 REHABILITATION AND RESETTLEMENT (R & R) PLAN

R & R plan is not applicable at this stage of project, as the land ownership has already been

obtained and Displacement of people is not involved in the project.

7.0 PROJECT SCHEDULE AND COST ESTIMATE

7.1: LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION (TIME

SCHEDULE FOR THE PROJECT TO BE GIVEN)

It is estimated that in Phase-I – 550,000 Tonnes per year Steel production capacity project

shall be completed in 30 months time from the date of breaking the ground.

Thereafter Phase-II - additional 150,000 Tonnes per year Steel production shall be completed

in 24 months time after commissioning Phase I.

7.2: ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF

THE PROJECT.

The total project cost is estimated Rs. 2892 Crore, based on quotations obtained in

consultation with technical consultant, for various major plant and machinery items.


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Table 7.1 Estimated Project Cost Sr. No.

Particulars

Estimated cost (Rs. In Crores)

Phase Phase I Phase II Cumulative

Capacity

(MT/year) 350,000 350,000 700,000

1 Land procurement and site

development 40 - 40

2 last Furnace + PCM 175 175 350

3 Steel Melt Shop (E.O.F, Ladle

Furnace, VD, Caster) 300 300 600

4 Wire rod cum bar mill + Bar Mill 500 350 850

5 Captive Power Plant (2 x 12

MW) 60 60 120

6 Lime Kiln (150 T / day) 10 10 20

7 Raw material handling, Power distribution, Communication

facilities etc. 20 20 40

8 Coke Oven Plant (2x120,000

TPA) 50 50 100

9 Margin money for working capital

100 100 200

10 Sinter Plant (2x50 M2) 75 75 150

11 Interest etc. (during project execution)

150 70 220

12 Contingency (7.5%) - - 202

Total 1480 1210 2892 8.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

Looking at the present market scenario, it is concluded that the project is not only feasible

and viable, but it will also increase the employment Opportunity and developmental

activities of the area in future.

for proposed integrated steel plant of 0.7...

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