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Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
1
PRE-FEASIBILITY REPORT OF M/s ILC IRON & STEEL PVT.LTD
1. Introduction of the project
M/s ILC Iron &Steel Pvt.Ltd is incorporated by a team of directors namely Sri K. Somasekhar and Sri
K. Chandrasekhar. At present industry is operating in 48Acres 36 Guntas comprising Sy.No.15, 16, 17
& 29 out of 95 Acres. As promoters felt the need to increase the production capacity, they have
acquired 7Acres34Guntas comprising SY.No.17, 36, 37, 38 and 51. Now, total area of the industry
increased to 102 Acres34Guntas. Earlier the company has taken EC from MoEF & CC, New Delhi and
Consent to operate from Karnataka State Pollution Control Board. The unit is located between
Kunikera Tanda and Kunikera Village, Kopppal Dist, Karnataka State.
2. Need of the project
As per the IBEF, India was the world’s third-largest steel producer in 2017. The growth in the Indian
steel sector has been driven by domestic availability of raw materials such as iron ore and cost-
effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing
output.The Indian steel industry is very modern with state-of-the-art steel mills with sustained
technological developments. It has always strived for continuous modernization and up-gradation of
older plants and higher energy efficiency levels.India’s crude steel and finished steel production
increased to 102.34 MT and 104.98 MT in 2017-18, respectively. In 2017-18, the country’s finished
steel exports increased 17 per cent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT
in 2016-17. Exports and imports of finished steel stood at 0.99 MT and 1.22 MT, during Apr-May
2018.India is expected to overtake Japan to become the world's second largest steel producer soon and
has envisaged achieving 300 MT of annual steel production capacity by 2030.Steel consumption is
expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.India is expected to become the second
largest steel producer in the world by the end of 2018.
Source: (Secondary Information): India Brand Equity Foundation
Industry’s sales graph is on the rise. Based on the above data and an increase in sales, investors
propose to enhance the capacity.
3. Project Description
3.1 Project details
Sl.No Description Details
I Name of the project ILC Iron & Steel Pvt.Ltd
II Location
Sy.No 15, 16, 17, 29, 36,37,38 ,51
Village Kunikera
Area Private land 102Acres and 34 Guntas
District Koppal
State Karnataka
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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III Present Land use pattern of the industry Acres
Total Land area 48.90
Built-up area 27.38
Production Block 13.14
Storage yard 10.95
ETP 0.82
Others 2.47
Roads 1.95
Green Belt 16.60
Open Area 2.97
3.2 Project site selection
Promoters are very conscious to the nature. Initially, after identifying the area, they have studied for
reserve forests, monuments, heritage buildings and wild life sanctuary. After confirming that there are
no endangered, threatened or rare plant species near the plant site or within the 25 kms radius of the
industrial estate that need to be conserved, promoters have established the industry at the location
mentioned above. Now, adjoining to the existing industry, investorshave acquired the land and intent
to enhance the size as well as production capacity.
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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Fig.1: Topographical map of the Area
ILC Iron & Steel Pvt.Ltd
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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Fig.2: General Location
ILC Iron & Steel Pvt.Ltd
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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Fig.3: Site Layout
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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3.3 List of Products
Below table depicts the present and proposed production quantities
I. Products
Product Name Consented
Quantity TPD
Proposed
Quantity
TPD
Total
TPD
Rolling Mill ( Bar, Rod ,Structural and Allied
products of iron )
665.00
0.2 MTPA
ISP
1330.00
0.4MTPA
ISP
1995
0.6 MTPA
ISP
Pellet plant 00.00
4000
(1.2 MTPA)
4000
(1.2 MTPA)
Tools for the above products production
Name of the tool Existing
Capacity
Proposed
Capacity
Total
capacity
Sponge Iron unit 4Kilns of 150
TPD
1Kiln of 350
TPD
950 TPD
Induction Melting Furnaces and /or Electric Arc
Furnaces for steel making of 25 Tons Capacity each
0.2 MTPA 0.4 MTPA 0.6 MTPA
Induction Melting Furnaces/ Electric Arc Furnaces
for steel making
25 Tons 4 Nos 40 Tons 5 Nos 25T-4 and
40T-5
Billet Casters for Casting liquid steel into billets 1 CCM (2
Strands)
1 CCM (3
Strands)
2 CCMs ( 5
Strands)
Ladle refining furnace (LRF)for secondary refining 25T-1No 40T-1No 25T&40T 1
each
AOD 0.00 40T-1No 40T-1No
TPD - Tons per Day, MTPA – Million Tons per Annum
II. CAPTIVE POWER GENERATION PLANT
Source Consented MWH Proposed MWH Total
MWH
WHRB/FBC 12 18 30
3.4 Raw materials requirement
Required raw materials like iron ore, Dolomite and Bentonite are available locally. Coal is imported.
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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3.5 Brief Manufacturing process
Sponge Iron
Iron ore undergoes reduction reaction with Coal in rotary kiln.Once reaction is complete, sponge iron
is collected.
Flow chart
Iron ore/PelletDolamite
Coal
Rotary Kiln
Coal Char By-Product
Magnet
Spnge Iron
Emissions to Captive power
system
Pellets
Iron ore fines taken after beneficiation is subjected to grinding in ball mill. It is mixed with
Bentonite and water. Finally the mixer is passed through rotary kiln and after cooling, it is
collected as nodules.
Flow chart
Iron Ball Mill
MixerBentonite
Water
Pellets
3.6 Resource Re-Cycling Optimizing /Re-cycling
Coal-Char is the by-product. Other by-product is a mixture of Sulphurdioxide, oxides of Nitrogen and
Carbon monoxide. These are used for captive power generation.
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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3.7 Water requirement
At present industry is consuming 1,00,000 Liters per day. Further industry requires additional 2,
00,000 Liters per day.Total water requirement will be 3,00,000 Liters. The water needs for the industry
will be met from natural rain water harvesting and bore wells.
3.8 Power requirement
The total power requirement for the plant after expansion is 30 MW and will met from in-House
generation. Any exigency shall be met with the local state government 220KV feeders.
4. Site Analysis
At present industry is in operation. Capacity enhancement if approved will take place within the
site.The area is well away from sensitive sites such as National parks, Wild life sanctuaries, biosphere
reserves, defense installations and religious places.
Temperatures in and around the site during day time is 410C and during night times it is 24
0C in
summer. During monsoon it will be between 300C and 22
0C and in winter it will varies between 30
0C
during day time and 100C in the night. Relative humidity is between 60% and 65%. Nearly 67% annual
rainfall is between June and September. A few showers will be received during the October. Maximum
average rainfall is 470mm in the area during monsoon period.
Secondary source
5. Brief Planning
Industry proposes to increase the production capacity by installing few additional tools. It continues to
work in shifts round the clock. Transportation of workers is a not a concern. Industry has engaged
private operators for the purpose.
5.1. Proposed combined land use pattern
Sl.No Description Acres
I Total Land area 102.85
II Built-up area 57.60
Production Block 27.65
Storage yard 23.04
ETP 1.73
Others 5.18
III Green Belt 34.97
IV Roads 4.11
V Open Area 6.17
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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5.2. Rehabilitation and Resettlement
Since the industry is in operation and expansion is adjacent to and within the adjoining land R& R is
not required. By providing direct and indirect employment to the locals and also by facilitating the
villages by conducting various developmental programs in a phased manner in association with local
bodies, Koppal district will develop socio-economically more.
5.3 Post project monitoring
The industry has defined environmental monitoring program to monitor the Ambient Air Quality as
well as Stack Emissions. Industry has installed online monitoring system. The industry has engaged
the third party laboratory for monitoring air quality periodically and reports are being submitted
regularly to KSPCB. Compliance report on EC taken is being submitted every six months to regional
office of MoEF & CC. So far no abnormalities are observed. If abnormality is observed after
expansion, corrective measures will be taken immediately.
6. Greenbelt development
6.1 Objective
Industry has an excellent developed green belt. It is a continuous process.It will continue to improve
the green belt where ever possible in addition to the existing greenery.
6.2 Plant species for green belt.
A wide range of plant species are grown in the industry site. This wide range covered plants of
Fast growing type
Thick canopy cover
Perennial green nature
Native origin
6.3 Design of Green Belt
As far possible the following guidelines will be considered in newly acquired sitefor green belt
development. Shrub and trees will be planted in encircling rows around the outer three rows (away
from planted side)
The short trees (<10 m height) will be planted in the first two rows (towards plant side) of the green
belt. The tall trees (>10 m height) will be planted in the outer three rows (away from plant side).
Planting of trees in each row will be in staggered orientation.
In the front row, shrubs consisting of Callistemon, Prosodies etc., Will be grown.
Since the trunks of the tall trees are generally devoid of foliage, it will be useful to have shrubs
in the fronts of the trees so as give coverage to this portion.
The spacing between the trees will be maintained slightly less than the normal spaces
Pre-Feasibility Report of M/s ILC Iron & Steel Pvt.Ltd
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7. Recycle of waste generation
The possible sources of waste generated for recycle is water. It is being recycled.
8. Environment management cell
The unit will provide upgraded Environment Management cell as below:
8.1 Environment Management Cell
The Environment Management Cell consists as given below
1. Manager
2. Process in charge from production
3. In charge Maintenance Department
4. In charge Operation ETP, Air Pollution Control Division, Solid waste management
9. Handling of raw materials and finished materials
The raw materials like Iron ore, Dolomite and coal are stored under covered shed.These raw materials
are transferred to production block by conveyer. Bentonite is received in bags and preserved
10. Project schedule and cost estimates
Once industry gets Environmental Clearance and Consent to establish for enhanced capacity, it will
start construction activity. Later it will obtain Consent to Operate from State Pollution Control to start
the commercial activity. At present it will continue to produce consented products.
Industry is expecting to get the clearances from regulatory bodies by April 2019. Industry will incur an
estimated additional investment of Rs 300Crore. Total project cost will increase to Rs.621 Crore.
Industry has allocated an amount of about Rs.62.00 Lacs for Environmental Protection measures
including green belt development.