SAKTHI FERRO ALLOYS INDIA PRIVATE LTDenvironmentclearance.nic.in/writereaddata/Online/TOR/10...Sakthi Ferro Alloys (India) Private Limited is a part of Sakthi Group and is a continuously

PRE-FEASIBILITY REPORT, SAKTHI FERRO ALLOYSi

SAKTHI FERRO ALLOYS INDIA PRIVATE LTD15/1,15/3,16,17/1,17/2,17/3,17/5,17/6,17/7,17/8 A, 17/9 and 152/32

Vasanadu village, Nadumuru Village Panchayath,Kuppam, Chittoor Dist.

Andra Pradesh, Pin - 517425

PRE-FEASIBILITY REPORT ON ENVIRONMENTAL ASPECTSOF PROPOSED EXPANSION OF

SAKTHI FERRO ALLOYS INDIA PRIVATE LTDfrom the production capacity of 27000 TPAof billets and 29000

TPA of TMT bars to 1,56,000 TPA billets and 1,44,000 TPA TMTBars

April 2019

Chennai Testing Laboratory Pvt. Ltd.A-Super 19, TVK Industrial Estate,

Guindy, Chennai 600032.E-Mail: [email protected]

PRE-FEASIBILITY REPORT, SAKTHI FERRO ALLOYSii

CONTENTS

1.0 EXECUTIVE SUMMARY................................................................................. 1

2.0 INTRODUCTION / BACKGROUND INFORMATION......................... 4

3.0 PROJECT DESCRIPTION ........................................................................... 7

4.0 SITE ANALYSIS........................................................................................... 18

5.0 PLANNING BRIEF ..................................................................................... 23

7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN.................... 26

8.0 PROJECT SCHEDULE & COST ESTIMATES ........................................... 27

9.0 ANALYSIS OF PROPOSAL ...................................................................... 28

Fig 1.0 Topo Map ……...……………………………………………………………8

Fig 2.0 HRS map ( 1 km radius ) ………………………………………………..9

Fig 3.0 Plant Layout …………………..…………………………...………………10

Fig 4.0 Process Flow Diagram …………………………….……………………...13

Fig 5.0 Material Balance 14

Fig 6.0 Water Balance Diagram……………………………………………….….16

Fig 7.0 Satellite Map ………………………………………………………………19

Fig 8.0 Physiography Map ….………………………….……………………...…20

Fig 9.0 Drainage and Water Bodies Map…………………….………………….21

Pre-feasibility Report 1 SAKTHI FERRO ALLOYS

1.0 EXECUTIVE SUMMARY

1.1 Proposed Project

The proposed project is an expansion of existing steel plant with installation of an

additional 1 X 15 TPH Induction furnace within the existing Billet/TMT Plant..

1.2 Project Location

The proposed project will be located at 15/1,15/3,16,17/1,17/2,17/3,17/5,17/6,17/7,17/8 A,

17/9 and 152/32 of Vasanadu Gollapalle village , Nadumuru village panchayath,Kuppam,

Chittoordistrict, Andra Pradesh and is devoid of any notified Eco-Sensitive within 10

kms radius of plant site and within Latitude and Longitude of 12°41’45.55” N

78°20’59.84” E , 12°41’44.49” N an78°21’07.25” E , 12°41’35.87” N78°21’03.58” E

and 12°41’37.65” N 78°20’57.33” E .

1.3 Project Proponent

M/s. Sakthi Ferro Alloys (india) Private Limited a company under Sakthi group of

companies having more than 3-decade long experience in scrap trading, Steel

Making and Marketing Business with its registered office at 8/26, Loganathan Nagar,

second street, Choolaimedu,Chennai 600094 Tamilnadu

1.4 Manufacturing Process

M.S. Scrap along with sponge Iron is melted in Electric Arc Furnace to produce

billets. The billets are then rolled into M.S. Rolled Products ie TMT Bars

1.5 Production Capacity

Products Production Details (TPA)Existing After Expansion

M. S. Billets (2 x 15 TPH, Induction Furnace) 28080 TPA 1,56,000 TPA

Rolled Products (Rolling Mill) TMT Bars 29000 TPA 1,44,000 TPA


1.6 Land usage of plant site

The total land requirement for the proposed expansion is 6.92 Ha

The land use is given as follows

Description Area in Ha

Built up area 1.56

Road 0.55

Scrap and Product storage area 2.01

Green belt 2.28

Vacant Lnd 0.52

Total 6.92

1.7 Raw Water Requirement

The total raw water requirement up on expansion will be 60 KLD and main water

requirement will be for cooling water make up and domestic purpose

1.8 Source of Water

Raw water will be sourced from Underground sources/Rain Water Harvesting.

1.9 Solid Waste Generation & Method of Disposal

The quantity of solid waste that would be generated from the Proposed Plant are as

follows

S. No. Description Quantity Generated(TPA)

Mode of Disposal

1. Slag 6408 The slag will be used forland filling in low lying areain the plant it self. Groundslag will be Sold to Cementmanufacturers


1.10 Man Power Requirement

A total of 500-employees would be needed for the operation of the proposed plant

after expansion.

1.11 Air Pollution Control

The major source of air pollution is melting of Scrap/Sponge Iron in Electric

Induction Furnace , Which is provided with Scrubber / Stack to minimize impact on

air pollution.

1.12 Estimated Project Cost

The total project cost for the proposed expansion is 14 Crores.

1.13 Pollution Control Cost

The total pollution control cost for proposed plant is `1.08 Crores.


2.0 INTRODUCTION / BACKGROUND INFORMATION

2.1 PROJECT & PROPONENT

M/s. Sakthi Ferro Alloys (India) Private Limited is a part of Sakthi Group and is a

continuously performing company with more than three decades of experience in

the field of steel/metal trading, manufacturing and marketing. M/s. Sakthi Ferro

Alloys (India) Private Limited is a privately owned company.

M/s. Sakthi Ferro Alloys (India) Private Limited is already producing M.S. Rolled

Products through its group entities to a tune of 1,00,000 MT/Annum of Rolled

Products.

Sakthi Ferro Alloys India Private Limited sells its Rolled Product both domestically

and overseas.

Now, it is proposed to expand of existing plant with following production capacity




2.2 NATURE OF PROPOSED PROJECT

The proposed project is a expansion of its existing facility by installing an additional

Induction furnace of 1X15 T and expansion of the Rolling facilities to produce billets

and TMT bars. M.S. Scrap along with Sponge Iron will be melted in Electric


Induction Furnace. The molten metal is cast into billets, and the billets are then

rolled into products.

2.3 NEED FOR THE PROJECT

Government of India has approved the National Steel Policy (NSP) 2017, as it seeks

to create a globally competitive Steel Industry in India. NSP 2017 targets 300 million

tonnes (MT) Steel making capacity, and 160 kg/capita steel production by 2030.

Huge Scope for growth is offered by India’s Comparatively low per capita steel

consumption, and expected rise in consumption due to increased infrastructural

construction and thriving transport industry. Government of India focus on

infrastructure, and restarting road projects is aiding boost in demand for steel.

Further, likely acceleration in rural economy and infrastructure is expected to lead

growth in demand for steel.

India is at present third largest producer of steel, and is all set to be the second

largest producer of steel by 2021. The growth in Indian Steel Industry is largely

driven by domestic availability of raw material such as Iron-ore, and cost effective

labour.

Further, remedial measures taken by Government of India to promote domestic steel

production, such as anti dumping duties, safeguard duties, and temporary

introduction of minimum import price, notified quality control order etc.

The Policy of Government of India also stipulates adoption of energy efficient

technologies, to improve overall productivity and reduce energy intensity.

The Government of India has also announced a policy for providing preference to

domestically manufactured Iron and Steel products in Government Procurement.

This Policy seeks to accomplish PM’s Vision of “Make in India” with objective of

Nation Building and encourage domestic manufacturing and is applicable on all

Government Tenders.


India has now emerged as a net exporter of finished steel products. India has

emerged as a top exporter of steel to Vietnam, Bangladesh, Myanmar, Sri Lanka,

Nepal and other European / American Markets. The demand for Indian Steel

Products from overseas market is set to increase, owing to slowing down of Chinese

production, overall.

2.4 EMPLOYMENT GENERATION

Employment generation is one of the important objective of any development

activity. Employment is closely linked to eradication of poverty. Unemployment,

and under employment had been the chronic feature of the Indian Economy.

Steel Industry employs people with many different skills and diverse knowledge.

Steel Industry employs unskilled, semi skilled and skilled workforce of various

nature. The workers required will be right from handling of raw material, to

processing of production, and finally handling of finished products. Apart from

main activity, workers are required for maintenance and operation of utilities.

Indirect generation of employment also entails in the form of logistics, supply chain

and related commercial activities.

Sakthi Ferro Alloy will employ about 500 direct workers after its expansion and

generate large scale indirect employment in the transportation, and related

commercial activities.


3.0 PROJECT DESCRIPTION

3.1 TYPE OF PROJECT

The proposed plant is an expansion of existing steel manufacturing unit. The project

upon completion envisages production of billets and TMT bars using M.S. Scraps

and Sponge Iron as raw materials.

The Proposed Plant after expansion will consist of 1 X 15 TPH Induction Furnace in

addition to existing to 1 X 15 TPH to produce 1,56,000 TPA Billets and Rolling mill

to produce 1,44000 TPA of TMT bars

3.2 PROJECT LOCATION

The proposed expansion project of Sakthi Ferro Alloy India Private Limited is to be

located at Survey Nos. 15/1,15/3,16,17/1,17/2,17/3,17/5,17/6,17/7,17/8 A, 17/9 and 152/32 of

Vasanadu Gollapalle village, Kuppam Taluk , Chittoordistrict, Andra Pradesh. .

The Latitude and Longitude of the project site is as follows.

Latitude Longitude12°41’44.47” N 78°21’08.33” E12°41’43.97” N 78°21’08.33” E12°41’43.90” N 78°21’08.13” E12°41’42.66” N 78°21’07.90” E12°41’42.61” N 78°21’07.71” E12°41’41.44” N 78°21’07.39” E12°41’41.57” N 78°21’06.88” E12°41’40.53” N 78°21’06.88” E12°41’40.38” N 78°21’07.08” E12°41’35.87” N 78°21’03.58” E12°41’37.65” N 78°20’57.33” E12°41’45.55” N 78°21’59.84” E12°41’44.60” N 78°21’06.86” E12°41’44.49” N 78°21’07.25” E12°41’44.45” N 78°21’07.57” E12°41’44.61” N 78°21’07.80” E

The project location is as shown in Fig.1.0 – Topo Map, and Fig.2.0 1 km radius HRS

Map and Fig.3.0 Plant Layout.


Fig 1.0 Topo Map


Fig 2.0 1 Km Radius HRS Map


Fig 3.0 Plant Layout

Pre-feasibility Report SAKTHI FERRO ALLOYS11

3.3 PRODUCTION CAPACITY

The details of production capacity of the proposed project are as follows.




3.4 MANUFACTURING PROCESS

Induction Furnace

Scrap along with Sponge Iron are the main raw materials for melting in the

Induction Furnace. The scrap / Sponge Iron will be brought into the steel plant

premises by Tipper / Dumpers / Trucks. The Scrap is unloaded either in the open

scrap yard where it will be intermittently stored or directly into the scrap bay, and

Sponge Iron will be unloaded in the closed shed.

From the bins in the Melting Bay EOT cranes will load the scrap/ sponge iron in to a

bucket which will be charged in to the Induction Furnace by EOT Crane.

The Induction Furnaces are Melting Units. The heat and stirring in a coreless

Induction Furnace is caused by magnetic forces which result from the interaction of

the electrical current flowing in the induction coil and in the molten bath itself melts

the metal and can increase the bath temp. to required temperature of 1600°C to

1650°C. Slag formed is taken out in the process.

There will be 2 x 15 T Electric Induction Furnaces, and the tapping temperature is

maintained to approx. 1620°C.

One heat in one Induction Furnace is estimated to take about 120 minutes on an


average. There will be two Induction Furnaces of 15 T capacity .The Melting Bay has

to therefore handle 24 heats every 24 hours.

Slag handling

The slag generated during melting will be to the extent of 4 %. De-slagging will be

done by tilting the IF forward during the process while the power is reduced to a

minimum for 1-2 min. During the process of de slagging by forward tilting will be

done 5 - 6 times every heat. The slag will fall into in a slag box parked below the

Induction Furnace. The slag pot capacity will be 10 T to take care of the slag of each

heat. The slag pot will be lifted by the EOT crane and either be emptied in a dumper

or at the end of the bay. From there the slag will be taken to the slag dumping area.

Billet Casting

Liquid steel from ladle furnace is now placed in the Turret of the Continuous

Casting Machine. The Turret shall be moved and positioned over the tundish into

which the liquid steel will flow. From the tundish the liquid steel will flow into the

mould which shapes and forms the billet. The required starting ladle temperature

for the manufacture of billet for TMT rebars, wire rod, rounds, structural / grade at

the CCM is about 1650° C. The withdrawal machine also varies the speed of the billet

to keep the level of the mould constant as the steel flow into it varies as the metering

nozzle erodes with time. After the withdrawal machine is the oxy-fuel cutting

machine which cuts the billets into 6 m / 12 m length.

Rolling Mill

The heated billets are fed to different rolling mills to produce required size of

finished products.The rolled product after last stand is transferred to Turnover

Cooling Bed and cut to specified length and after Quality inspection and requisite

Color Coding, bundling etc. is shifted to dispatch section.


Purchase of rawmaterial

Segregation of Scrap

Moving scrap and sponge iron in to InductionFurnace

Melting of Scrap

Testing bath sample

Is satisfying the IS (BIS) standards

Local - Indigenious

Final bath sample

Increase the temperature of molten steelfor required level

DEMAND IN MARKET

Imported

Add carbon or reducecarbon for therequirement

Tapping liquid metal in Laddle

Purging in Laddle with N2/Argon gassample

Laddle placing over CCM casting stand

Liquid metal filling in tundish

Laddle sample taking

Temperature CheckingLaddle sample taking

Liquid metal drawn to mould tube

Casting as billets

Rolliing mill

Passing Through TMT Box

Cutting as per required Size

Despatch

Fig 4.0 Process flow Diagram


Fig 5.0 Material balance (Existing & Expansion)

Induction Furnace(Existing – 15 T x 1 Nos.

Enhancement - 15 T x 1 No.)

51030 TPA (Sponge Iron)

119070 TPA (Scrap)

Continuous Casting Machine

Rolling / Bar / Wire Rod/ Structural Mills (Existing 1 Nos. &Additional 3 Nos.)

1,44,000 TPATMT Bars

1,56,000 TPA Billets

Slag6408 TPA

Oxidation loss1745 TPA

ReturnableScrap

4806 TPA

Burning Loss6000 TPA

Crop Ends6000 TPA

Mill Scale1140 TPA


3.5 RAW MATERIAL REQUIREMENT

The major raw material required is virgin scrap and sponge iron for Induction

Furnace. The Annual requirement of raw materials on the basis of achievable

production will be as follows

Description Quantity (TPA)Existing Upon Expansion

M.S. Scrap 21623 119070

Sponge Iron 9267 51030

Sponge Iron is stored in closed shed and M.S. Scrap on metalled surface.

3.6 WATER / ENERGY REQUIREMENT

3.6.1 RAW WATER REQUIREMENT

The raw water requirement for the operation of the plant upon expansion will be as

follows, and will be sourced from ground water within plant site.

Description Qty (KLD)

Induction coil/Rolling mill cooling make-up 40

DM. Plant Regeration 5

Domestic Consumption 15

Total 60

The Fresh Water drawn from ground will be only 60 Cu.m/day for make up in process and

domestic consumption

The detailed Water Balance Diagram is as shown in Fig 6.0.


Fig 6.0 Water Balance Diagram

All values are in KLD

Raw Water60

Induction Furnace1 & 2 Cooling

Rolling MillCooling

D.M. Water

Evaporation Loss – 20

Evaporation Loss – 7

30

10

5 5

3

10

18 Neutralization Tank

Green Belt

18

DomesticConsumption15

12 Septic Tank withDispersion

Trench

12


3.6.2 ENERGY CONSUMPTION

The entire power requirements in existing and after expansion are 2.06 MW and

13.82 MW respectively. After expansion 13.82 MW will be sourced from APSPDCL.

Back up power :

DG Set 1 x 380 KVA

3.7 SOURCES OF POLLUTION AND ITS CONTROL

3.7.1 WATER ENVIRONMENT

The only major source of waste water is cooling water blow down and DM plant

regeneration waste which is subjected to treatment in neutralization tank and used

for green belt development.

3.7.2 SOLID WASTE MANAGEMENT

The solid waste generated will be only of 6408 TPA of slag from melting, in Electric

Induction Furnace, which is disposed to downstream building material producers.

The 200 kg waste and residues containing oil generated will be handed over to

authorized recyclers.

3.7.3 AIR ENVIRONMENT

The only major sources of air emission is melting of scrap / Sponge Iron in Electric

Induction Furnace , where in hood with an ID fan is provided, and the resultant

emission are cleared in a water spray packed wet scrubber , with stack 36 m height is

provided.


4.0 SITE ANALYSIS

4.1 CONNECTIVITY

The proposed plant will be located at Vasanadu post, Kuppam tehsil, Chittoor dist.

Andra Pradhesh state. The project site is located at distance of 7 km from Kuppam

Railway station. Plant site is well connected from Krishnagiri Road NH-48

(Chennai – Banglore Road), about 18 km south.

4.2 LAND FORM, LAND USE & LAND OWNERSHIP

The total land area of the existing plant is 6.92 Ha and the additional installation of

one 1 X 15 T EIF and enhancement of its rolling facility doesn’t envisage any

additional procurement of land. Out of 6.92 hectors 1.56 hectors will be built up area,

2.01 hectors will be Scrap and Product storage area, 0.55 hectors will be road,2.28

hectors will be green belt and remaining 0.52 hectors will be vacant land.

4.3 TOPOGRAPHY

Topography is Plain. The Topography of the proposed project site is as shown in

Fig.7.0 Satellite Imagery Map & Fig.8.0 Physiography Map.

4.4 DRAINAGE PATTERN & WATER BODIES

Drainage and Water Bodies around the vicinity of plant site and also within 10 km

radius of the plant site is as shown in Fig.9.0 Drainage and Water bodies Map.


Fig 7.0 Satellite Imagery Map


Fig 8.0 Physiography Map


Fig 9.0 Drainage & Water Bodies Map


4.5 SOIL CLASSIFICATION

The soils in general are characterized by sand/clay content, poor nitrate and

phosphorus contents. The fertility status of the lands, mostly under rain fed

agricultural use, is generally medium except in some pockets where the soils are

fertile.

4.6 CLIMATIC DATA

The climate of the project site is dry and the Max. dry & wet bulb temperature is 36.0

/ 32.0 °C respectively and Min. dry & wet bulb temperature 16.0 / 12.0°C

respectively. The predominant wind direction in the region W followed by SE.

Average annual rain fall of this region is about 600 mm. The average maximum

wind speed in this region is about 12 km/hr. The annual Maximum Humidity is

100% and minimum humidity is 30%.


5.0 PLANNING BRIEF

The area is dependent on the agriculture for their overall development and

livelihood. The area within 10 kms radius of plant site is having one steel industry

and other small, medium and large scale industries like cotton mills, Textiles,

Aluminum insulation, Granite industries and Food industries.

The total land requirement for the proposed project is 6.92 Ha

The Land usage and Break-up are as follows.

Description Area in Ha

Built up area 1.56

Road 0.55

Scrap and Product storage area 2.01

Green belt 2.28

Vacant Lnd 0.52

Total 6.92

The green belt development is already done about 25% of the total land area andremaining is in process.



6.0 PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA

The proposed expansion requires construction of a platform to house Electric

Induction Furnace within the existing shed, where as all other facilities are existing.

6.2 GREEN BELT

About 2.28 hectors of total Land will be developed as Greenbelt, and 25% of the

green belt all ready done and remaining area will be developed as per MoEF

guidelines. More-over species selected are in consultation with the local forest

officer, and will be predominantly consist of local species.


7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN

The proposed plant is only the expansion of existing plant in the total land area of

6.92 Ha. There are no rehabilitation and resettlement or land oustees, as the land

area at present is already in use.


8.0 PROJECT SCHEDULE & COST ESTIMATES

8.1 TIME SCHEDULE

The construction of proposed expansion plant will take around 6 months from date

of obtaining Environmental Clearance. So, the proposed expansion will be

commissioned during the December 2019.

8.2 PROJECT COST

The total project cost for expansion will be Rs.14 Crores, which is inclusive of Rs.

1.10 Crores for pollution control activities.


9.0 ANALYSIS OF PROPOSAL

9.1 FINANCIAL & SOCIAL BENEFITS

Social benefits results in evaluation of project from society point of view. Proposed

steel plant will involve not only construction of the plant, but also construction of

intermediaries, which are basically facilities to the workers but will also offer

economic benefit to the local population.

Pollution from plant may cause degradation of the environment, which is the cost or

price locals have to pay for economic benefits accruing because of the proposed

project.

The significance of economic development cannot be underplayed especially in a

underdeveloped area, and Government also recommends investment in projects to

contribute in well being of the Society.

The proposed project of M/s Sakthi Ferro Alloys India Private Limited would result

in increased revenues to Government of Andra Pradhesh, and Government of India,

in terms of cumulative tax, both indirect taxes, and direct taxes.

The proposed project of M/s. Sakthi Ferro Alloys India Private Limited will also

result in augmentation of the social infrastructure, more-over investments in various

environment conservation measures will result in better living condition.

M/s Sakthi Ferro Alloys India Private Limited will invest about 0.2% of the project

cost in thrust areas for CSR activities such as income generation program, health and

hygiene, empowerment through self help groups, and water supply to near by

villages.

Documents

SAKTHI FERRO ALLOYS INDIA PRIVATE LTDenvironmentclearance.nic.in/writereaddata/Online/TOR/10...Sakthi Ferro Alloys (India) Private Limited is a part of Sakthi Group and is a continuously