Project Report On Steel Melting Plant

APPLICATION FOR ENVIRONMENTAL CLEARANCE

(DETAILED PROJECT REPORT) For THE PROPOSED STEEL MELTING UNIT WITH 74,100 TPA OF MS BILLETS PRODUCTION AND MODERNIZATION OF EXISTING STEEL ROLLING MILL

Submitted to State Level Environmental Impact Assessment Authority

Tamil Nadu

Submitted by

M/s. Dindigul Steel Rolling Mills Pvt. Ltd. Kulathur Village, Vedasandur Taluk Tamil Nadu

June 2017

TABLE OF CONTENTS

Chapter 1.0

2.0

3.0

4.0

Title

Page

Introduction

1

1.1 Iron and Steel Industry in India

1

1.2 Re-rolling Industry in India

2

1.3 Long product Segment in India

3

1.4 Consumption

3

1.5 Exports and Imports

3

1.6 Construction Industry in India

4

1.7 Infrastructure Sector in India

5

1.8 Demand for steel products

6

1.9 Product Market

7

Project Proposal

7

2.1 Project Promoters

7

2.2 Project location

8

2.3 Process Technology

10

2.4 Plant Design and Layout

12

2.5 Land Requirement

12

2.6 Raw Material Requirement

12

2.7 Water Requirement

13

2.8 Power and Fuel Requirement

13

2.9 Manpower Requirement

13

2.10 Project Cost

13

Environmental Management

13

3.1 Air Quality Management

14

3.2 Wastewater Management

15

3.3 Solid Waste Management

15

3.1 Noise Pollution Management

15

Conclusion

16

LIST OF TABLES

Table

Title

Page

1.1

Production Details

8

1.2

Environmental Setting

9

1.3

Land use Brake-up

12

1.4

Raw Material Requirement

12

1.5

Water Requirement

13

1.6

Expected Stack Emissions

14

1.7

Solid Waste Generation Details

16

LIST OF FIGURES

Table

1.1

Title

Combined Process Flow Chart of M.S. Billets and TMT Bars

Page

11

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 1.0

INTRODUCTION Steel is now produced in greater quantity than any other man-made material except concrete. Steel is dominant in the manufacturing sector since it is among the most widely used materials today. What is particularly significant in today’s ecology conscious world is that steel is the most recycled, which makes sustainable growth in steel desirable. This is not the case with many other metals/materials. The liberalization of the economy in the early nineties accompanied by concerted efforts made by the government to rejuvenate the steel industry have not only prompted government investment, but have also encouraged many private players to get into steel. Consequently, over the last couple of years the industry has been witnessing unprecedented growth. The year 2004 was a landmark year in global steel production- it crossed the 1000 million tons mark for the first time. The major steel producing countries are listed below. Country China Japan United States Russia South Korea F.r. Germany Ukraine Brazil India Italy Total

Rank 1 2 3 4 5 6 7 8 9 10 -

Crude Steel Production (MTPA) 272.5 112.7 98.9 65.6 47.5 46.4 38.7 32.9 32.6 28.4 1056.7

India which is now the fourth largest economy in terms of purchasing power parity is expected to overtake Japan and become third major economy within ten years. Since steel is a major barometer of progress it will be logical to expect growth in steel at a rapid pace. Growth in steel is normally directly related to GDP. Some analyses actually believe that the Indian steel industry will grow at a faster rate than the GDP growth rate in coming years. To support 8 percent growth rate of the economy, a completely different kind of infrastructure (in terms of industrial complexes, railways, ports, factories) will be required, all of which are highly steel intensive. 1.1

IRON AND STEEL INDUSTRY IN INDIA Iron and Steel Industry in India is over 125 years old. India is the ninth largest producer of crude steel in the world with a production of 33 million MT and investment of over Rs 1,000 billion. The country produced 32.6 million MT finished steel in 2003-04, compared to a meagre one million MT in 1947. Of this, 21 million MT came from the secondary producers while the main producers accounted for 15.18 million MT. The steel industry in India after the policy reforms since 1991 is placed in a totally new environment. Price regulation of iron and steel was abolished on 16.1.1992. The Indian Government, like others, has realigned these policies to adjust to the reorganization and reorientation of the forces of global economic development. Hence competitions from imports and market opportunities for exports have become normal features for iron and steel industry. In a recent study conducted by Ministry of steel, demand for finished steel has been forecast to reach the following levels.

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Demand for Steel (In Million MT) 29.916 48.290 75.580

RE-ROLLING INDUSTRY IN INDIA There were 1192 Re-rolling units in the country with a total installed capacity of 23.82 million MT per annum. These units produced 6.57 million MT during the year 1999-2000. The same went up to over 8.00 million MT. The share of secondary steel producer in India out of the total production of finished steel has been assessed at 59 percent which itself proves the achievement of this sector. The secondary industry has always been recognized by the government and the steel experts as a compliment to the main stream of steel industry. The industry has catered thousand and thousand MT of its products to core projects, dams, State Electricity Boards and other infrastructure projects in India. The steel re-rolling industry caters to the needs of the domestic field up to the tune of 68 per cent of the total requirement. 80 per cent of the total exports of rounds and bars have been recorded from the secondary steel producers.

1.3

LONG PRODUCT SEGMENT IN INDIA Steel products are broadly classified into two segments namely long products and flat products. Long products consist of bars, rod, angles, channels and other structural materials which find applications mainly in civil engineering contracts and structural materials. Bars are used in construction as reinforcement for concrete. Flat products include plates, sheets and CIS. The ratio of long products to flats in developing countries is around 60.40 whereas the flat products dominate over long products in developed countries. Long products in steel are those, whose length to cross section ratio is greater than 10. Long products include bars, wire rods, angles, structural and channels. They are required for a wide range of activities ranging from making "Chulah" - an earthen oven widely used in Indian Villages to construction of bridges across rivers and seas. Building, Housing, Supporting structures, Roofs, Railway lines, Girders are all fabricated from longs. Requirement of long products is predominant in any developing country. With the growth in industry, the use of "Flat" products like plates and sheets became popular. However, In India we are presently at a stage where consumption of flat and long products hold almost equal share. Generally speaking long products can be classified mainly into - Bars/ Rods - Wire Rods - Structural like angles, channels and beams - Railway materials Bars and rods are produced in straight lengths (5m to 12 m) or in coils (coil weight 0.3 MT to 1.5 MT). Generally, sizes up to 12 mm are in coils and higher sizes are in straight lengths. In both categories, they may be rebars for construction or plain rounds for engineering and other

Vimta Labs Limited, Hyderabad/Coimbatore

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT applications. Main producers in steel industry make both rebars and plain rounds whereas rerollers make rebars (CTD bars/TMT Bars). Longs lack basically in its usage diversity. Infrastructure is normally capital intensive and hence in developing/ under developed countries, their growth is constrained for want of funds. There is a need for longs to come out of their conventional usage and find alternative usage. The production of long products in India during past period is given below. (In Million MT) Year Bars & Rod Structurals Railway Total

1996-97 8.931 2.533 0.619 11.543

1997-98 8.140 2.724 0.610 11.474

1998-99 8.149 2.740 0.533 11.422

1999-00 8.703 2.547 0.482 11.732

2000-01 9.590 2.440 0.618 12.648

Long products in India are produced by major integrated steel plants and also by a number of secondary re-rollers. Out of the total production of longs at around 12.643 million MT in the year 2000-01, main producers produced 4.925 million MT and secondary producers manufactured 7.723 million MT i.e. steel majors are able to meet only 35-40% of the demand at present capacity levels of production. Balance 65-70-% demand is being met from over 1500 re-rolling mills spread all over India. These re-rollers take semis, blooms, and billet from integrated steel plants or pencil ingot from Induction producers and further roll them into longs. Most of the secondary re-rollers run on batch process. It is a fact that the quality standard of longs produced from steel majors is far superior but due to the cheaper products from re-rollers, the price of longs from steel majors is under great strain. All steels majors are finding difficulties, till recently, to retrieve the cash cost of the products. 1.4

CONSUMPTION The annual apparent consumption of long products in the year 2000-02 was at 12.263 million MT as against flat products consumption of 1.4318 million MT, This shows that long products form about 46% of total steel consumption. Long products consumption as a percentage of total steel consumption is still at a high level in India in comparison to 29.2% in USA and 37.1 % in European Union.

1.5

EXPORTS AND IMPORTS Till mid nineties, India was a marginal exporter of steel, exporting only the surpluses after meeting the domestic demand. But since 1996-97, the scenario has changed to a larger extent. India was able to export about 2.279 million MT of flat products and 0.385 million MT of non flat products in the year 2000-01. Past imports and exports of steel items are given below. (In Million MT) Year 1995-96 1996-97 1997-98

Flat exports 0.546 0.848 1.275

Flat imports 1.477 1.492 1.53

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Non flat exp 0.729 0.774 0.605

Non flat imp 0.059 0.070 0.054

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 1998-99 1999-2000 2000-01 1.6

1.302 2.306 2.279

1.065 1.390 1.338

0.469 0.364 0.385

0.067 0.210 0.079

CONSTRUCTION INDUSTRY IN INDIA The constitution of India includes the right to live and have a livelihood as a fundamental right. It also includes the right to housing policy. The directive principles of the state policy make it an obligation on the state to facilitate housing. Housing demand is a universal problem. Housing is one of the three prime necessities of life. Food and clothing, being other two prime requirements, have been met to some extent. Housing demand still needs to be fulfilled. This is because of the shortage of funds and inadequacy of financial institutions, coupled with an increase in costs of building materials, labour and land. Currently less than 4 dwelling units per 1000 of population per annum gets constructed in India. However the UN recommendation for developing countries is of 8 to 10 dwelling units per 1000 per annum in the next 20-30 years to arrest the deterioration of housing situation. Today, the housing construction sector is not fully integrated in line with the macro-economic governance of the nation. The overall productivity in this sector is well below its actual potential. According to one survey report, housing is growing slowly at just 4 per cent per year and contributes a mere 1 per cent to India's GDP. Labour productivity in the sector is less than one fifth of its actual potential. The share of housing and construction sector to employment is hardly 1 per cent. If all these hurdles in this sector are removed, then the sector has the ability to generate 3.2 million jobs by the year 2010. Boost to housing sector can rejuvenate the economy. Housing has maximum propensity to generate income and demand for materials, equipment and services. Funds allocated to shelter return in the shape of income and demand to other sectors. The housing and construction sector, besides being an opportunity for catering to the housing end, is a major kick starter for the economy. For every one crore rupees of investment in housing, nearly 290 industries in the building material sector get activated besides the core manufacturing sector constituting cement, steel and bricks. The consequent employment opportunities generated amount to an order of nearly 750 man-years. Thus one can achieve a 3in-1 solution of employment generation, economic development and human development through investments in housing. The central government has committed itself to the goal of housing for all in rural areas by the end of the tenth plan period and has formulated a comprehensive action plan for rural housing. The Golden Jubilee Rural Housing Finance Scheme is proposed to be increased to cover 2.25 lakh units in 2002-03, an increase from the earlier target of 1.7lakh units. One lakh units have already been financed in 2001. The allocation of the India Awas Uojana is increased by 13 per cent to Rs. 1.725 Crore for 2002-03. All this coupled with the lowering of housing loans augur well for a greater demand for housing, both in rural and urban areas. In India, growth of urban population during the past decade indicates higher growth for metro cities. There are 6 mega cities (4 million plus) and 23 metropolitan cities in the country, which are estimated to have increased to 40 by 2001 AD. There are also 300 large towns (0.1 million) and 3396 small and medium towns (less than 0.1 million population). With economic

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT liberalization and expected higher economic growth, the rate of urbanization in India in the coming decades is likely to increase. As per a study conducted by the United Nations, by the year 2015, 10 of the world's largest cities will be in Asia (excluding Japan). Growth will be high and the country is poised for rapid urbanization, which will lead to major development in real estate infrastructure projects. The housing sector in India has potential to bring back growth in the economy. The sector is recognized as a major vehicle to produce and create wealth, generate employment and earn foreign exchange. But sadly, the sector is still in the nascent stage of development. India has vast opportunities in housing, but more has to be done to harness the potential. 1.7

INFRASTRUCTURE SECTOR IN INDIA The Rakesh Mohan Committee in the India infrastructure Report has rightly identified the cause, consequences, problem size and the resources needed for making a dent in infrastructure development. The total requirement for urban infrastructure development covering the backlog in service provision, new investment and operations and Maintenance for the next 10 years is a mammoth USD 60 Billion according to estimates of the Rakesh Mohan Committee. This would mean per annum requirement of USD 6 Billion. Against this mammoth figure, plan funds for urban infrastructure development fall short by more than 10 times the requirement. The India infrastructure Report, 1996 estimates the annual investment need for urban water supply, sanitation and roads, at about 28.035 core for the next ten years. The Central Public Health and Environmental Engineering Organization (CPHEEO) has estimated the requirement of funds for 100 per cent coverage of the urban population under safe water supply and sanitation services by the year 2021 at Rs. 172.905 crore. Estimates by Rail lndia Technical and Economic Services (RITES) indicate that the amount required for urban transport and infrastructure investment in cities with population of 100,000 or more during the next 20 years would be of the order of Rs. 207,000 crore. Obviously, sums of these magnitudes cannot be located from within the budgetary resources of Central, State and Local Governments. Compulsions have, therefore, arose to access financial resources from the market and induce the private sector urban development programs. With a view to further strengthening the infrastructure availability in rural areas, it was decided to restructure and streamline Jawahar Rozgar Yojana to provide demand-driven rural infrastructure at the village level. The restructured programme is implemented only at the village level and has therefore, been renamed as Jawahar Gram Samridhi Yojana (JGSY). The Central allocation for 2001-2002 was at Rs. 1,645.60 Crore. Most infrastructure service are technologically complex, requiring large capital investment, large quantities of energy and requiring constant maintenance, to the extent that the pricing of such services remains constant or relatively inelastic, or worse still, the service are not priced at all. The costs of services are an increasing burden on relatively static municipal resources and state budgets. This has led to a steady deterioration in the maintenance of city level infrastructure services, throughout India. Hence a suitable concept of cost recovery becomes necessary.

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 1.8

DEMAND FOR STEEL PRODUCTS Apart from demand for steel from housing sector, substantial demand will be from other major end use applications as given below: a) b) c) d) e)

Industrial Buildings and civil works Commercial buildings and complexes Dams and Bridges Infrastructure projects excluding roads and bridges. Other uses including industrial uses.

The Indian Government has given top priority to infrastructure development during next ten years. Hence huge investments proposed in this sector will result in large scale civil works which leads to substantial increase in demand for steel apart from cement and sand. Similarly planned approach towards economic growth will stimulate industrial activity. Establishment of new industrial undertakings in larger sizes will be required to maintain substantially high industrial production, as there are remote chances of many of presently closed industrial units. Booming consumer market has triggered construction of commercial buildings and related civil works such as amusement parks, sports grounds etc. While it is well understood that demand for steel from all the above sectors will be substantial and continuously growing, quantifying this demand sector wise and region wise becomes very difficult due to diverse nature of each sector with requirement norms and uncertainties in actual implementation of various plans. However, on a reasonable basis, the total demand from the above sectors may be assumed to be at 100 to 150% of demand from housing sector by 125%, the total demand on. All India basis and for individual state may be estimated. As transportation cost will be major factor, long products sales will be generally within a radius of 200-250 km from rolling mills. The demand for long products is estimated based on various estimates for finished steel. The estimated total demand for finished steel including exports is 75.58 million MT, thus signifying an annual growth of 7.5% - 8.5%. Assuming that there will be no significant structural changes in th th the country during 10 and 11 Five year plan periods and the growth in construction and manufacturing activities would not suffer due to shift in the pattern of investment from the th government to private, foreign sources as envisaged in 9 plan period. The domestic demand for 2006-07 and 2011-2012 are estimated and given below for bars and rods / structurals. (In million MT) Year Bars and rods Structurals Railway materials Total Non flats Total flats Total finished steel Pig iron

2001-02 10.233 3.299 0.887 14.419 15.497 29.916 3.300

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2006-07 17.709 5.10 1.110 23.927 24.364 48.291 4.540

2011-2012 30.500 7.800 1.290 39.590 35.990 75.580 6.250

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 1.9

PRODUCT MARKET The products of the plant fall under the category of bars and rods. It will be catering to Tamil Nadu Market and Kerala Market. The major thrust area of market will be about 250 km radius around Dindigul, where the unit is located. Detailed estimates based on discussions with industry people and data available are prepared for demand of CTD bars, TMT bars and structurals with likely break up in normally moving sizes. More over, the market scope is analyzed here as a new entrant without much business contracts. Belonging to a leading business group with many group companies and a large number of customers, business associates and material/product suppliers are expected to successfully market the entire output of products without any difficulty, especially with a good product quality based on a graded input material for billet manufacturing. Even then, suitable market promotion efforts are necessary to achieve the same. We believe that success of our industry would be in the philosophy of offering timely delivery and meeting the customer standards. The demand for power is increasing day by day. Our associate concerns experienced in this line of industry emphasize us to give considerable importance to cost, quality and reliability. We have placed tremendous emphasis on formulating and implementing rigid systems and procedures at every step of the process. Our strategy of marketing is in developing a good relationship with our customers. This approach comprises. 1. Manufacturing good materials to meet the needs in relation to delivery and quality. 2. Effecting and upgrading continuous improvements in technology 3. Using our capacity to fulfill the cost target needs

2.0

PROJECT PROPOSAL

2.1

PROJECT PROMOTERS M/s. Dindigul Steel Rolling Mills (P) Limited is one of the leading steel manufacturing Companies in Tamil Nadu. Their existing TMT Bars Manufacturing unit was established in the year 1995. M/s/ Dindigul Steel Rolling Mills (P) Ltd started its steel production in 1995 with the Annual Capacity of 20,000 MT for the manufacture of TMT Bars. They are the leading manufacturer in south Tamil Nadu and from the year 2013, they had moved onto the new technology of Automatic Rolling Mills and they had extended their Capacity of 40,000 MT per year and they are the Leading Manufacturer of Fe 500 TMT Bars in south Tamil Nadu. Their products have played an important role in driving the construction boom in the Southern Indian States. Today, their brands are the market leaders providing high levels of trusted and inspired steel solutions to its customers. The products are BIS certified and their process has gained ISO certification for their unit. Quality apart, they have a strong environment consciousness. All its production facilities are fully in conformance with environment norms and they have enhanced its commitment to green manufacturing. The consented production capacity of the plant is to manufacture TMT Bars of 48,000 MTA, for which 48,100 MTA of M.S. Billets need to be procured from the local market. To avoid, the large

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT procurement of MS Billets from the local market, DSRM Pvt Ltd proposes the steel melting unit for the production of MS Billets of 74,100 MTA capacity and to modernize the existing steel rolling mill by direct re-rolling of hot conditioned billets into rollers from the concast machine. The proposed melting unit features 1 No of 15 MT induction furnace with two crucibles. Only one crucible will be operated at a time for a furnace and the other will be kept as stand by. The total estimated cost for the proposed project is Rs. 6.0 Crores. TABLE – 1.1 PRODUCTION DETAILS Sr. No.

2.2

Products

1.

TMT Bars

2.

M.S. Billets

Existing Capacity After Modernization Capacity 4000 TPM 4000 TPM (48,000 TPA) (48,000 TPA) 4008.3 TPM 6175 TPM (48,100 TPA) (74,100 TPA) Source: Procurement from Source: In-Plant Production Local Market

PROJECT LOCATION The plant site is situated at Kulathur Village, Vedasandur Taluk, Dindigul District in State of Tamil Nadu. The nearest habitation is Kulathur Village which is at a distance of 0.5 Km, SSW. The plant is about 9.1 Km, SSW to Dindigul and the site is adjacent to (Dindigul-GuziliamparaiKarur) State Highway SH-74. The nearest railway station is Dindigul R.S., which is at a distance of about 10.0 km, SSW. The nearest airport is Madurai Airport at a distance of 67 Km, South direction. The details of environmental setting are given in Table-1.2. The index map of the project site is attached as Annexure - I. The study area map and Google Map - 10 km radius are attached as Annexure - II and Annexure - III.

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PR-8

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT TABLE - 1.2 ENVIRONMENTAL SETTING Sr. No.

1

Particulars

Site Co-ordinates

2 3

Elevation above MSL Climatic conditions

4 5

Land use of the project site Nearest Highway (Adjacent)

6 7 8 9 10

13 14 15

Nearest Railway Station Nearest Air Port Nearest Habitation Nearest Town Ecologically sensitive zone (Wild Life Sanctuaries) Reserved Forests Defense Installation/Historical Monuments/Archaeological/ ports Historical Places Socio-economic factors Nearest River

16

Nearby Industries

11 12

Vimta Labs Limited, Hyderabad/Coimbatore

Details Corner A

Latitude 10° 26’ 35.28’’ N

Longitude 78° 01’ 02.14’’ E

B

10° 26’ 32.10’’ N

78° 01’ 03.21’’ E

C

10° 26’ 31.01’’ N

78° 01’ 56.41’’ E

D

10° 26’ 31.30’’ N

78° 01’ 54.38’’ E

E

10° 26’ 33.53’’ N

78° 01’ 56.41’’ E

245 m 1. Annual Max. Temp: 43oC 2. Annual Min. Temp: 13oC 3. Annual average rainfall: 813 mm Industrial Area as per Local Planning Authority (Dindigul - Guziliamparai-Karur) State Highway (SH-74). Dindigul R.S. – 10 km, SSW Madurai Airport – 67 km, South Kulathur – 1.0 Km, South Dindigul – 9.1, SSW No national parks and Sanctuaries within 10 km radius Nil in 10 km radius Nil in 10 km radius Nil in 10 km radius No resettlement and rehabilitation involved Sandanavardani River - 0.8 km, SSW Kodavanar River - 9.0 km, West 1. DSRM Steels Pvt Ltd - Adjacent, North 2. Mani’s Foundries Pvt. Ltd. - 5.0 km, East 3. Sasha Soundaraja “C”&“D” Mills - 5.0 km, South

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Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 2.3

PROCESS TECHNOLOGY Raw materials used in the manufacturing of MS Billets are MS Scrap (shredded and local scrap), Sponge Iron and alloying elements such as Silico Manganese, Ferro Silicon and Aluminium Ingots. The chemical analysis reports of all the raw materials are performed before the onset of manufacturing process. An Electrical Induction Furnace of capacity 15 MT is used in the production of MS Billets. Before beginning the melting process, the HR sheet lining for batching of Ramming Mass and Boric Acid over the Furnace are ensured. With the help of EOT Crane fitted with magnets, the MS scrap is charged into the furnace where it gets melted and is converted to liquid metal. As per the opening samples report, the liquid metal consists of Carbon in the range of 0.30 to 0.50 % and Sulphur in the range of 0.07 to 0.09%. Thus, in order to bring down the Carbon and Sulphur content to the required specification, Sponge Iron and De-Sulphur powder are used. After confirming the analysis report by lab, the alloying elements of Silico Manganese, Ferro Silicon and Aluminium Ingots are added in to the liquid metal. The liquid metal will be tapped after confirming the temperature to be within 1600-1610 °C. The liquid metal is taken through the ladle and through the copper mould tube to the Continuous Concast Machine, where it takes the form of Billets. The billets are then sized upon requirement in the conveyor. Now in red hot condition, the billets are fed directly into rollers to convert it into TMT rods. Water is used at this stage to act as a lubricant and coolant, in order to reduce the heat between fiber bush and rollers. The water used will be recycled back from the underground sump with the help of re-cycling pump provided. This eliminates the usage of lubricant oil. The length of each TMT rods, or bars as it is now called, is about 40 feet, which is dispatched for commercial use. The process flow chart is shown in Figure - 1.1. The existing plant and green belt photographs are attached as Annexure – VIII.

ADVANTAGES OF DIRECT ROLLING PRACTICES Depending upon the facilities such as capacity, number of induction furnace (IF), mill equipment etc., it would be possible to achieve 75-80% direct rolling. Thus, huge saving of furnace oil and coal required for heating of the billet which will result into enormous saving in Fuel energy and thereby reduce the Green House Gas (GHG) emission. Reduction in the scale loss to the extent of 1.5 to 3.5%, which would have been burned in the billet reheating furnace. Savings in the cost of Ingot moulds, refractory, etc. It will improve the productivity of the mill and also that of the manpower engaged in the Plant. It would also result in some saving in power consumption because of the indirect savings of Burning loss and improved liquid metal to finished steel etc. It will reduce miss roll, cobbles, etc and improve the product quality, increase % yield etc.

Vimta Labs Limited, Hyderabad/Coimbatore

PR-10

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT

MS Scrap (Iron & Steel)

Melting at 1600oC Ferro Silicon/Ferro Manganese/Aluminium Ingots Quality Testing

Pouring into Concast Mould

Billet Formation in red hot condition

Billet Cutting

Rolling Mill

TMT bar production

Inspection & Dispatch

FIGURE – 1.1 COMBINED PROCESS FLOW CHART OF MS BILLETS AND TMT BARS

Vimta Labs Limited, Hyderabad/Coimbatore

PR-11

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 2.4

Plant Design and Layout The project site is located in S.F. Nos. 410/1A, 411/1, 411/3A, 413/2, 414/1A and 415/1A of Kulathur Village, Vedasandur Taluk, Dindigul District, Tamil Nadu. The proposed melting unit and modernization activities will be carried out within the existing premises itself. The aerial view of the existing industry is attached as Annexure - IV. The layout map along with the proposed facilities is shown in Annexure-V.

2.5

Land Requirement The total land available under the ownership of DSRM Pvt Ltd is 2.11 ha (5.21 acres). The proposed melting unit and modernization activities will be carried out within the existing area itself. Hence, no additional land is required for the proposed facilities. The land use of existing plant is categorized as industrial area. The land use break-up is given in Table - 1.3. TABLE - 1.3 LANDUSE BREAK-UP Sr. No. 1. 2. 3. 4.

2.6

Land use

Existing

Factory Shed Area Products Storage Area Green belt Road and Open space area Total

0.389 0.292 0.583 0.846 2.11

Area (ha) Area After Proposed Activities 0.681 0.489 0.704 0.236 2.11

Raw Material Requirement The raw materials are different types of MS scrap, sponge iron and aluminium ingots. The material balance for the existing and proposed are attached as Annexure-VII. The raw material requirement details before and after the proposed modernization are presented in Table - 1.4. TABLE - 1.4 DETAILS OF RAW MATERIAL REQUIREMENT RAW MATERIALS REQUIREMENT FOR PROPOSED STEEL MELTING UNIT

Sr. No.

Raw Material

Quantity (Tons/Annum)

Source of Raw Materials

Steel Melting Unit 1.

MS Scrap

2.

Silico Manganese

600

3.

Sponge Iron

9277

64,293 Local Market

RAW MATERIALS REQUIREMENT FOR ROLLING MILL

Sr. No.

Raw Material

1.

MS Billets

Quantity (Tons/Annum) Existing - 48,100 Source: Market

Vimta Labs Limited, Hyderabad/Coimbatore

From

Local

After Modernization - 74,100 Source: In-Plant Production PR-12

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT 2.7

Water Requirement The one time water requirement of the proposed modernization is 18.8 KLD and the daily fresh water requirement will be 11 KLD. Water requirement in the plant is for drinking purposes, cooling the machineries and scrubber make-up. The entire water requirement of the plant is being sourced from the village panchayat. The total water requirement before and after expansion is given in Table - 1.5. The water balance diagram is attached as Annexure - VI. TABLE - 1.5 WATER REQUIREMENT Sr. No. 1. 2. 3.

2.8

Category Domestic purposes Machinery cooling Scrubber make-up Total

Requirement (KLD) Existing After Modernization 3.1 6.3 2.7 11.5 0.5 1.0 6.3 18.8

Power and Fuel Requirement The power used for the existing production is 2000 KVA, which is being sourced from TANGEDCO. After modernization, the power requirement will increase to 9500 KVA, which will also be met from TANGEDCO grid. To meet the emergency power requirement during the grid failure, a diesel generator with capacity of 200 KVA is available which is used only for common facilities. Another 500 KVA and 35 KVA DG sets are proposed for the plant modernization.

2.9

Manpower Requirement The manpower in the existing plant is 70 Nos. It will be increased to 140 Nos. after the proposed modernization which includes officers and supervisors.

2.10

Project Cost The total estimated cost for the proposed melting unit and moderntization activities is about Rs. 6.0 Crores in which, the unit is equipped with the necessary plant and machineries such as new furnaces, continuous Casting Machine, D.C. Drives, laboratory equipment, etc.

3.0

ENVIRONMENTAL MANAGEMENT In the process as well as in the auxiliary plants, along with the useful product several waste materials will also be generated. These waste materials include gaseous emissions, wastewater generation, solid waste and noise generations. The waste products produced by the steel melting unit are directly related to the metal type, the furnace type and the fuel used. By volume, gaseous waste is the largest waste source from the steel melting unit. Most of the gaseous metal emissions are captured in the emissions control systems attached to induction furnace.

Vimta Labs Limited, Hyderabad/Coimbatore

PR-13

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT The quantities and the composition of the gaseous and solid waste that are generated in the plant will be regulated such that their final disposal into the environment meets all the statutory requirements and the environmental impacts will be minimized. The sources of particulate and gaseous emissions are from induction furnace and DG sets. The sources of wastewater are from domestic usages and Venturi wet scrubber. The solid wastes generated from the entire plant are metal scraps, furnace slag, end bits, mill scale and solar pan residue from the solar evaporation pan. 3.1

Air Quality Management The source of air emission from the modernization project is the dust and gaseous emission from the proposed Induction furnaces in melting shop. The melting of metals and alloys in the induction furnaces generates dust and metal oxide fumes. These dust and fumes are extracted from the furnace and they are passed through an air pollution control system consisting of dust collector followed by Venturi Wet Scrubber and then it is released onto the atmosphere through stack height of 36.0 m. After modernization there won’t be dust and flue gases generation from the reheating furnace due to the direct re-rolling of hot billets from the concast casting to rolling mill. Due to change in the process of re-rolling, the reheating furnace, coal gasifier, pulverizer and furnace oil tanks will not be utilized after the proposed modernization and will be decommissioned. The expected air emissions in the existing project are Particulate Matter, Sulphur dioxide and Oxides of Nitrogen and the details are given in Table – 1.6 TABLE – 1.6 EXPECTED STACK EMISSIONS (EXISTING) Stack No Material of Construction Stack attached to

*1 M.S Re-Heating Furnace (1 x 15 TPH) 30.0

2 M.S D.G. Set (1 x 200 KVA) 7.0

*3 M.S Coal Gasifier

Stack height Above the ground 30 level, in m Stack top Round or Round Round Round Circular Inside dimensions of the stack 600 75 150 at top, mm 3 Gaseous Discharge – Nm /hr 7889.18 146.36 Flue gas temperature, °C 282 110 50 Exit velocity of the gas, m/s 14.34 12 25 Emission concentration, g/s SO2 0.0005 0.002 0.0006 NOx 0.77 1.12 PM 0.33 0.056 * The existing reheating furnace and coal gasifier will be decommissioned in the proposed modernization and the re-rollers will be operated as direct hot rolling in existing steel re-rolling mill.

Vimta Labs Limited, Hyderabad/Coimbatore

PR-14

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT EXPECTED STACK EMISSIONS (AFTER MODERNZATION) Stack No Material of Construction Stack attached to

1 M.S Induction Furnace 1 x 15 T 36.0

2 M.S

3 M.S

D.G. Set 1 x 35 KVA

D.G. Set 1 x 500 KVA

4 M.S D.G. Set (1 x 200 KVA) 7.0

Stack height Above the ground 7.0 7.0 level, in m Stack top Round or Round Round Round Round Circular Inside dimensions of the stack at 1200 75 75 75 top, mm 3 Gas quantity – Nm /hr 21562.6 146.36 Flue gas temperature, °C 79 45 135 110 Exit velocity of the gas, m/s 25 15 12 12 Emission concentration, g/s SO2 0.30 0.0007 0.002 0.002 NOx 0.59 1.31 1.12 1.12 PM 0.89 0.08 0.056 0.056 * The existing reheating furnace and coal gasifier will be decommissioned in the proposed modernization and the re-rollers will be operated as direct hot rolling in existing steel re-rolling mill. 3.2

Wastewater Management The quantity of wastewater generation depends upon the quantity of water used for various purposes. As the steel melting shop and rolling mill will be operated on the dry process, water used in the process is only for the cooling of induction furnace coil, inverter and capacitor, cooling of rolls and in TMT Line water box etc. No wastewater is generated from cooling operation. Water from the cooling operation is left in the cooling tank. After cooling, the water will be re-used for the processes. Water is also used in Venturi wet scrubber to control the dust emission from the furnaces. In this operation, 0.7 KLD of wastewater will be generated, which will be evaporated in the solar evaporation pan. From the domestic uses (drinking and sanitation), sewage is generated. The sewage generation expected after the proposed expansion is 5.6 KLD. The total quantity of the sewage will be treated in the proposed sewage treatment plant, having a capacity of 10 KLD.

3.3

Solid Waste Generation and Management The quantities of solid waste generation after the proposed modernization activities in the steel melting unit and rolling mill are presented in Table – 1.7.

Vimta Labs Limited, Hyderabad/Coimbatore

PR-15

Proposed Steel Melting Unit with 74,100 TPA of MS Billets Production and Modernization of Existing Steel Rolling Mill by M/s. Dindigul Steel Rolling Mills Pvt Ltd at Kulathur Village, Vedasandur Taluk, Dindigul District DETAILED PROJECT REPORT TABLE – 1.7 DETAILS OF SOLID WASTE GENERATION Sr. No.

Source

Quantity (TPA)

Waste management

Steel Melting (Billets Unit) 1.

Furnace slag

283

Will be given to the cement manufacturers

2.

Solar pan residue

0.31

Collected, Stored and will be given to TSDF.

3.

Runner, riser & scraps

71.0

Re-melted in the process

Steel rolling mill 1.

End bits

33

Re-melted in the process

2.

Mill scale

67

Will be given to battery manufacturers

Domestic waste

3.4

1.

Municipal solid waste

25.5

The Municipal solid waste will be collected and given to the local Village Panchayat.

2.

STP sludge

2.19

The de-watered sludge will be properly dried, pelletized and used as manure for gardening.

Noise Pollution Control Measures The major noise generating sources are steel melting section, rolling mill section, blowers, compressors, standby DG set and Machine shop. The noise levels at 1m away from these sources will be maintained less than 75-dB (A) in compliance with the statutory requirements.

4.0

CONCLUSION The project is well conceived and effectively planned by one of the leading Industrial houses of Dindigul. With the Indian GDP growth poised to reach 8 percent and prediction indicating a high level investment in infrastructure fields, the government's emphasis on development of infrastructural facilities in the country, the steel industry will witness accelerated growth of more than 15% per annum. Realizing this trend, DSRM Pvt Ltd has proposed the steel melting unit and modernization of existing rolling mill in Dindigul district, which is in close proximity to the growing infrastructure market. This project will be implemented within six months from the date of issue of Environmental Clearance and thereon commercial production will commence. This unit is expected to provide additional employment to around 140 persons directly and to more than 210 persons indirectly. By adding more advanced technologies and cost effective production techniques, this group will achieve cost competitiveness over other players in this field.

Vimta Labs Limited, Hyderabad/Coimbatore

PR-16

ANNEXURE - I INDEX MAP OF THE EXISTING PROJECT SITE

PROJECT PROJECT SITE SITE

ANNEXURE - II STUDY AREA MAP – 10 KM RADIUS

ANNEXURE - III GOOGLE MAP – 10 KM RADIUS

ANNEXURE - IV AERIAL VIEW O F THE EXISTING INDUSTRY

ANNEXURE - V

ANNEXURE – VI WATER BALANCE DIAGRAM All Values are in KLD

ANNEXURE – VII MATERIAL BALANCE

ROLLING MILL (EXISTING) All the values are in Tonnes/Annum Input Raw Materials

M.S. Billets (Procurement from Local Market)

Output Products & Wastes

TMT Bars

48,000

End bits

33

Mill scale

67

48,100

Total

48,100

Total

48,100

MS. BILLETS (PROPOSED) All the values are in Tonnes/Annum Input Raw Materials

M.S. Scrap Sponge Iron Silico Manganese

Output Products & Wastes

64,293 9277 600

Ferro Silicon

50

Scrap returns

237

Total

74,457

M.S. Billet

74,100

Furnace slag

283

Miscellaneous Loss

3.0

Runner, riser & scraps Total

71.0 74,457

Ramming mass is used as lining material for the furnace so it was not considered as waste in the process

ANNEXURE - VIII PHOTOGRAPHS OF EXISTING ROLLING MILL

MS BILLETS STORAGE YARD

REHEATING FURNACE

HOT CHARGED BILLETS FROM THE REHEATING FURNACE

HOT CHARGED BILLETS FEED INTO THE ROUGHING MILL

ROUGHING MILL

INTERMEDIATE MILL

CONTINUOUS STAND

TMT ROLLERS

TMT COOLING BED

WORKSHOP

COOLING TANK I

COOLING TANK II

COAL STORAGE YARD

COAL GASIFIER

COAL PULVERIZER

TMT PRODUCTS STORAGE YARD

PHOTOGRAPHS OF EXISTING GREENBELT