Pre-Feasibility Report: Ankur Udyog Limited (Steel Division)

PRE-FEASIBILITY REPORT
By
Ankur Udyog Limited (Steel Division)

[DRI Kilns (2,31,000 TPA), Steel Melting Shop (2,47,000 TPA), Rolling Mill (2,47,500
TPA), Power Generation – 40 MW (16 MW through Waste Heat Recovery Boiler
(WHRB) and 24 MW through Fluidized bed combustion (FBC) Boiler)]
At
Plot No. AL-2, Sector 23, GIDA Industrial Area,
Village Sahbazganj & Domharmafi,
Tehsil Sahjanwa, District Gorakhpur,
Uttar Pradesh - 273209
Prefeasibility Report Ankur Udyog Ltd. (Steel Division)
[Integrated Steel Plant]
Table of Contents
Chapter –1:EXECUTIVE SUMMARY ......................................................................................................... 1

1.1 SALIENT FEATURES OF THE PROJECT ....................................................................................... 1
1.2 PROJECT PROPONENT .............................................................................................................. 1
Chapter – 2: INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION .................................. 4
2.1 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT ........................................................... 4
2.2 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION ............ 5
2.3 DEMAND AND SUPPLY GAP ..................................................................................................... 6
2.4 EXPORT POSSIBILITY ................................................................................................................. 6
2.5 DOMESTIC/EXPORT MARKETS ................................................................................................. 6
2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT ........................ 9
Chapter – 3 : PROJECT DESCRIPTION .................................................................................................... 11
3.1 TYPE OF THE PROJECT ............................................................................................................ 11
3.2 LOCATION OF THE PROJECT ................................................................................................... 11
3.3 DETAILS OF THE ALTERNATE SITES ......................................................................................... 13
3.4 SIZE OR MAGNITUDE OF OPERATION .................................................................................... 14
3.5 MANUFACTURING PROCESS .................................................................................................. 14
3.5.1 DRI KILN BASED SPONGE IRON PLANT ............................................................................ 14
3.5.2 STEEL MELTING SHOP ..................................................................................................... 17
3.5.3 ROLLING MILL.................................................................................................................. 18
3.5.4 POWER PLANT................................................................................................................. 19
3.6 RAW MATERIAL REQUIREMENT ............................................................................................. 22
3.7 WATER REQUIREMENT AND ITS SOURCE .............................................................................. 23
3.8 WASTEWATER GENERATION & ITS MANAGEMENT .............................................................. 23
3.9 SOLID WASTE GENERATION AND ITS MANAGEMENT ........................................................... 23
3.10 POWER REQUIREMENT .......................................................................................................... 24
Chapter – 4 : SITE ANALYSIS .................................................................................................................. 25
4.1 INFRASTRUCTURE ................................................................................................................... 25
4.2 CONNECTIVITY ........................................................................................................................ 25
4.2 Land details ............................................................................................................................ 26
Chapter – 5 : PLANNING BRIEF ............................................................................................................. 27
5.1 PLANNING CONCEPT .............................................................................................................. 27
5.2 POPULATION PROJECTION ..................................................................................................... 28
5.3 LAND USE PLANNING ............................................................................................................. 28
5.4 AMENITIES / FACILITIES .......................................................................................................... 29

Chapter – 6 : PROPOSED INFRASTRUCTURE ......................................................................................... 30
6.1 INDUSTRIAL AREA (PROCESSING AREA) ................................................................................. 30
6.2 RESIDENTIAL AREA (NON PROCESSING AREA) ....................................................................... 30
6.3 GREEN BELT ............................................................................................................................ 30
6.4 SOCIAL INFRASTRUCTURE ...................................................................................................... 30
6.6 DRINKING WATER MANAGEMENT ......................................................................................... 31
6.7 WASTEWATER GENERATION & ITS MANAGEMENT .............................................................. 31
Chapter – 7: REHABILITATION & RESETTLEMENT (R & R) PLAN ........................................................... 32
Chapter – 8 : PROJECT SCHEDULE & COST ESTIMATES ........................................................................ 33
8.1 PROJECT SCHEDULE ................................................................................................................ 33
8.2 PROJECT COST ........................................................................................................................ 34
Chapter – 9 : ANALYSIS OF PROPOSAL.................................................................................................. 35
9.1 FINANCIAL AND SOCIAL BENEFITS ......................................................................................... 35
9.2 SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES .................................................................. 35
Chapter –1:EXECUTIVE SUMMARY

1.1 SALIENT FEATURES OF THE PROJECT
Ankur Udyog Ltd. (Steel Division), have proposed to setup the Integrated steel plant at Plot
No. AL-2, Sector 23, GIDA Industrial Area, Village Sahbazganj & Domharmafi, Tehsil Sahjanwa,
District Gorakhpur, Uttar Pradesh. Following is the plant configuraton and production
capacity:
S.No. Units Plant Configuration

(Production Capacity)
1. DRI Kilns 2 x 350 TPD
(Sponge Iron) (2,31,000 TPA)
2. Induction Furnace with Concast 3 x 25 T
(MS Billets) (2,47,500 TPA)
3. Rolling Mill 1 x 750 TPD
(MS Re-Bars (TMT) and structural steel) (2,47,500 TPA)
4. Power Plant WHRB - 2 x 40TPH 16 MW
(Electricity) FBC - 1 x 110TPH 24 MW
(40 MW)
1.2 PROJECT PROPONENT

M/s. Ankur Udyog Limited is a Public Limited Company incorporated in the year 1996. The
company is a closely held company of Ashok Jalan Group of Gorakhpur. The company till date
has been indulged in the Textile Sector, manufacturing and processing of manmade fiber yarn
(Polyester & Viscose).
The company had setup its First Spinning Unit at Gorakhpur in Year 1998 with an installed
capacity of 20,736 Spindles, which were subsequently increased to present capacity of 65,664
spindles. At present the unit is engaged in Manufacturing of Polyester Yarn & Polyester
Viscose Yarn of different counts depending on the Market demand.
The company is registered with Registrar of Companies of West Bengal having CIN –
U28113WB1996PLC081427 and Income Tax Department under PAN – AACCA6741R. In its
journey of growth the company faced many challenges but has successfully emerged as one
of the finest manufacturer of synthetic yarn in the country. The company had undertaken
several expansions since 1998 and has reached the present production capacity to 65,664
spindles as under:
1
Year Nos. of Spindles Installed

1997-98 20,736
2002-03 13,824
2005-06 13,824
2013-14 17,280
Total 65,664
Management
Sri Ashok Kumar Jalan (Managing Director):
Shri Ashok Kumar Jalan S/o Late Shri Jugal Kishore Jalan R/o Moharipur, Gorakhpur is an
experienced entrepreneur. He is promoter/director of the company and is associated with
day to day activities of the company and is looking after all the functions of the existing
spinning mill of the company. Mr. Jalan has also been involved in running a steel
manufacturing unit (Induction Furnace & Steel bars) from the year 1987 to 2002. He has a rich
experience of the Steel & Textile Industry. He is a graduate and has deep knowledge of the
trade and industry. Shri. Ashok Kumar Jalan has been felicitated with the honorary
“UDDYAMI SAMMAN 2010” for leading Entrepreneur in the state of Uttar Pradesh by ZEE
News Media Group.
Smt. Kusum Jalan (Director):
Smt. Kusum Jalan W/o Shri Ashok Kumar Jalan R/o Moharipur, Gorakhpur is a dynamic lady.
She is promoter/director of the company and is associated with day to day activities of the
company. She is a graduate and has deep knowledge of the trade and industry.
Shri Ankur Jalan (Director):
Shri Ankur Jalan S/o Shri Ashok Kumar Jalan R/o Moharipur, Gorakhpur is a young man of 34
years. He is associated with day to day activities of the company and is looking after all the
functions of the existing spinning mill of the company for more than 10 years. He is a post-
graduation in business administration and has deep knowledge of the trade and industry. He
will be actively involved in setting up the new proposed project and its operation.
Mr. Nikhil Jalan (Chief Executive Officer)
Mr. Nikhil Jalan S/o Shri Ashok Jalan is a young and dynamic entrepreneur. He has been
working in the existing unit of the company for the last 4 years and has acquired vital
experience of the industry. He holds a Msc. In Finance & Accounts from The Cass Business
School, City University, London and has a diploma in entrepreneurship & Business Leadership
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from the world renowned London School of Economics (LSE), He will be actively involved in
setting up the new proposed project and its operation.
Achievements & Accomplishments of the Company
• The company has been a growing and expanding concern, in a span of 15 years the
installed capacity of the company has already increased by 3 TIMES (300%) from 20,736
spindles in 1998-99 to 65,664 spindles in 2013-14
• The company is the LARGEST manufacturer of Non-cotton yarn in the state of Uttar
Pradesh as has been ranked amongst the “TOP TEN SPUN YARN PRODUCING TEXTILE
MILLS (NON-COTTON) OF INDIA” for the last 3 consecutive years. As per the Official
Indian Textile Statistic annual data published by the Ministry of Textile, Govt. of India,
the national ranking in the Non-Cotton category of the company for the last 3 years is as
below:-
Financial Year National Rank
2010-11 5th
2011-12 7th
2012-13 7th
• The main person behind the group Shri. Ashok Kumar Jalan has been felicitated with the
honorary “UDDYAMI SAMMAN 2010” for leading Entrepreneur in the state of Uttar
Pradesh by ZEE News.
• The company provides direct employment to more than 750 workers and indirect
employment to many more. The proposed unit will further generate approx. 450 direct
employment opportunities.
The company is now proposing to set up a new unit as Ankur Udyog Limited (Steel Division).
This proposed unit is for a state-of-art Integrated Steel Plant with Captive Power Plant. The
proposed unit will be set-up on a land admeasuring Approx 79 acers which is allotted to the
company by the Gorakhpur industrial Development Authority (GIDA) for setting up a steel
plant.
To meet the ever increasing demand of Steel, AUL has decided to set up an Integrated Steel
making facility consisting of a DRI Unit (Sponge Iron), Captive Power Plant to utilize the heat
from the waste hot gases and Char/Coal, Steel Melt Shop of matching capacity having
melting, refining and billet casting & Rolling Mill to manufacture TMT Bars and Structural
Steel.
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Chapter – 2: INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION
2.1 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT

District Gorakhpur, Uttar Pradesh.
In view of the tremendous market potential of iron & steel products promoters have decided
to set-up an Integrated Steel Plant with Captive Power Plant. This project shall consist of
production of Sponge Iron (DRI), Steel Billets, Re-rolled products (TMT Bars and structural
steel) with Captive Power Plant. Integration and Captive power will make the project
profitable and make it financially more viable. The in-house consumption of sponge iron for
manufacturing of billets, which would further be rolled into TMT bars and captive power plant
utilizing the waste heat rejects from the sponge iron would improve the overall profitability of
the project. The modules of the projects are as follows:
S.No Division Rational

1. DRI To produce sponge iron by installing 02 Rotary Kiln with a
(Sponge Iron) capacity of 350MT/Day, Assuming 330 Working days in a
year the final annual capacity comes to 2,31,000 MT. This
production of Sponge Iron will be utilized in the in-house
Steel Melt Shop (Induction Furnace with Continuous
Casting) to produce Steel Billets. Further, the waste heat
of sponge iron kilns shall be utilised by the captive power
plant for power generation up to 16MW
2. Steel Melting Shop To produce Steel Billets by installing 03 Induction
(MS Billet) Furnaces of 25 MT/Heat. Considering 10 Heats per day
with 330 working days in a year the annual capacity
comes 2,47,500 MT. This production will be further used
to meet the requirements of the In – House Rolling Mill.
3. Rolling Mill To manufacture MS Re-Bars (TMT) and structural steel by
(MS Re-Bars & installing rolling mill of 750 MT per Day. At 330 Working
Structural Steel) Days per year the annual capacity comes to 2,47,500 MT.
This will be the final finished product of the proposed unit.
The proposed mill will be set up on the concept of Hot
Rolling of the Billets from the Continuous Casting Machine
to save power.
4. Captive Power Plant To generate captive power for the entire project
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requirement of 40 MW and efficient utilization of waste
heat (Gases) and solid waste (Dolochar) coming out from
DRI kilns. This will reduce the overall cost of power
significantly. Entire power shall be consumed by the unit
itself. A 40 MW Turbo Generator (TG) will be installed with
16 MW WHRB (2 x 40TPH) and 24 MW FBC Boiler (1 x
110TPH). The above shall fulfil almost the entire need of
power of the proposed project.
2.2 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION
Steel Industry
Looking at the present world and India Steel scenario, decision by the Company to set up the
unit is timely. Indian Steel industry is poised for a massive growth in next 10-12 years.
International Steel Scenario
Global Steel demand is rising on the back of accelerated infrastructure activity in China, CIS
countries & India; housing and industrial boom in Middle East and the African Countries.
During the last almost decade-long recession, the industry has consolidated in terms of
ownership as well as mothballing of inefficient capacities. Internationally steel prices are
expected to continue firming up.
National Steel Scenario
Indian government has announced National Steel Policy (NSP) in early November, 2005. The
policy envisages a compound annual growth rate (CAGR) of 7.3% per annum in steel sector up
to 2019-20. To achieve this, the NSP aims to increase indigenous production from 44Mt level
to about 110 Mt by 2019-20, through multi-pronged strategy. The focus of NSP is on to
achieving global competitiveness, not only in terms of cost, quality and product- mix but also
in terms of global benchmarks of efficiency and productivity.
The government proposes to create incremental demand for domestic consumption of steel
through promotional efforts, awareness drives and strengthen the delivery chain, particularly
in rural areas.
According to available estimates, the NSP mentions that domestic consumption of steel in
India stood at 31Mt in 2003-04. Bringing production up to 110 Mt would, therefore, mean an
increase in domestic consumption of about 80Mt. The urban per capita consumption is
5
expected to go up from the present level of 77 kg to 165 kg in 2019-20 at CAGR of 5%, while
in rural areas the consumption is slated to double from 2 kg to 4 kg at CAGR of 4.4 %.
To boost production to a level of 110 Mt by 2019-20, the domestic producers of steel have
announced massive expansion of capacities. In addition, many Greenfield projects have been
planned. Two big global players from abroad, MITTAL ARCELOR, the world’s biggest steel
producer and POSCO of South Korea, globally the fifth largest producer of steel, have also
joined the Indian steel industry’s venture to meet the growth targets. Looking at the world
average per capita steel consumption of 150 kg and the average of 328 kg in developed
countries, the projections of NSP seem to be quite realistic.
2.3 DEMAND AND SUPPLY GAP

Demand for steel is high and as soon as they are processed they will be supplied to nearby
industries.
2.4 EXPORT POSSIBILITY

As the Indian steel industry has entered into a new development stage from 2007-08, riding
high on the resurgent economy and rising demand for steel. 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 the demand is more the export possibility of Sponge Iron
will also be more. As the demand is more the export possibility will also be more.
2.5 DOMESTIC/EXPORT MARKETS

Indian Steel Industry
India was the world’s third-largest steel producer in 2016. 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. It has always strived for continuous modernisation and up-gradation of older plants and
higher energy efficiency levels.
Market Size
India’s crude steel production grew by 7.4 per cent year-on-year to 95.6 Million Tonnes (MT)
in 2016. Total production of crude steel during February 2017 grew by 8.5 per cent year-on-
year to 8.08 MT. India’s steel exports grew 150.0 per cent year-on-year to 0.75 MT in
6
February 2017, while steel imports declined 46 per cent year-on-year to 0.49 MT. Total
consumption of finished steel grew by 3.4 per cent year-on-year to 76.22 MT during April
2016-February 2017.
Investments
Steel industry and its associated mining and metallurgy sectors have seen a number of major
investments and developments in the recent past.
According to the data released by Department of Industrial Policy and Promotion (DIPP), the
Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$
10.15 billion, respectively, in the period April 2000– December 2016.
Some of the major investments in the Indian steel industry are as follows:
• Tata Steel has signed an agreement to purchase a majority 51 per cent stake in Creative
Port Development (CPDPL), which has a concession agreement with the Odisha
government to develop a 10 million-tonnes-per-annum (MTPA) Subarnarekha port at
Chamukh village in Balasore district of Odisha.
• Tidfore Heavy Equipment Group, the China-based infrastructure giant, is looking to
enter the Indian market by signing an investment agreement worth US$ 150 million
with Uttam Galva Metallics, to expand its Wardha unit along with South Korean steel
major Posco.
• ArcelorMittal SA is looking to set up a joint venture (JV) factory in India with state-
owned Steel Authority of India Ltd (SAIL), to manufacture high-end steel products which
could be used in defence and satellite industries.
• JSW Group plans to invest around Rs 10,000 crore (US$ 1.5 billion) at Salboni in West
Bengal to set up 1,320 Megawatt (MW) coal-based power plant, 4.8 million tonne
cement plant and paints factory over a period of next five to seven years.
• National Mineral Development Corporation (NMDC) has planned to invest Rs 40,000
crore (US$ 6 billion) in the next eight years to achieve mining capacity of 75 Million
Tonnes Per Annum (MTPA) by FY2018-19 and 100 MTPA by FY2021-22, compared to 48
MTPA current capacity.
• Posco Korea, the multinational Korean steel company, has signed an agreement with
Shree Uttam Steel and Power (part of Uttam Galva Group) to set up a steel plant at
Satarda in Maharashtra.
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• ArcelorMittal, world’s leading steel maker, has agreed a joint venture with Steel
Authority of India Ltd (SAIL) to set up an automotive steel manufacturing facility in
India.
• Iran has evinced interest in strengthening ties with India in the steel and mines sector,
said ambassador of the Islamic Republic of Iran, Mr Gholamreza Ansari in his
conversation with Minister of Steel and Mines, Mr Narendra Singh Tomar.
• Public sector mining giant NMDC Ltd will set up a reenfield 3-million tonne per annum
steel mill in Karnataka jointly with the state government at an estimated investment of
Rs 18,000 crore (US$ 2.7 billion).
• JSW Steel has announced to add capacity to make its plant in Karnataka the largest at 20
MT by 2022.
The Indian economy is rapidly growing and is emerging as the second largest developing
economy of the world, which has a great impact on domestic consumption of steel as well as
export potential to other countries. As a result of this, the demand for iron & steel remains
extremely good, this would continue for next 10 years if not less, since the per capita
consumption of steel in India is still very low compared to other developed countries. For
rapid development of economy and infrastructure of the country it is necessary to increase
the production of steel within the country. Technology –wise, the modern day Indian steel
industry is a mix of the old and the new, and traditionally, the following groups are identified.
Primary producers:
The integrated steel plants which operate mainly with Blast furnace –Basic oxygen furnace (BF
–BOF) route for producing finished steel.
Secondary producers:
These are the producers operating through routes other than BF – BOF. Generally followed
routes are: (1) Electric Arc Furnace (EAF) and Induction furnace (IF) melting units using scrap,
DRI/ HBI, pig iron etc. in various combinations as input mix, (2) MBF – EAF route where the
charge materials for EAF use about 50% hot metal from MBF making the operation more
economical due to the inherent chemical energy of hot metal. (3) Rest of the charge is DRI
and generated scrap Processors / Rerollers having only the downstream Rolling mills, forging
shops etc which process the semi- finished materials produced by primary and secondary
producers.
8
Primary producers are the four plants of the Steel Authority of India Limited (SAIL), and the
Rashtriya Ispat Nigam Limited (RINL). Both are in public sector and Tata Steel (TISCO), in the
private sector.
Many big producers have also come up in the Secondary sector such as Essar Steel, Ispat
industries, Jindal Strips, Bhushan Steel, JVSL (JSW now) etc.
Production of Steel
Indian steel industry : Production for Sale (in million tonnes)

Category 2011-12 2012-13 2013-14 2014-15 2015-16
Pig Iron 5.37 6.87 7.95 9.69 9.23
Sponge Iron 19.63 14.33 18.20 20.38 14.53
Total Finished Steel (alloy/stainless +
75.70 81.68 87.67 92.16 90.98
non alloy)
Source: Joint Plant Committee
The economic reforms and consequent liberalization of Iron & steel sector which started in
1991, brought about a sea change in the industry, particularly setting up of new steel plants in
the private sector. Steel industry was de-licensed and de-controlled in 1991 & 1992
respectively.
• India is currently the 3rd largest producer of crude steel in the world.
• In 2015-16, production for sale of total finished steel (alloy + non alloy) was 90.98 mt, a
decline of 1.3% over 2014-15.
• Production for sale of Pig Iron in 2015-16 was 9.23 mt, a decline of 4.8% over 2014-15.
• India was the largest producer of sponge iron in the world during the period 2003-2015
and was the 2 nd largest producer in 2016 (after Iran) . The coal based route accounted
for 89% of total sponge iron production in the country in 2015-16.
2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT

The estimated manpower requirement for the proposed project is 500 numbers (Direct) and
1000 numbers (Indirect).
Efficient management of the unit requires judicious manpower planning, selection of
Qualified and experienced personnel and appropriate organizational structure clearly defining
the functions and responsibility of the managerial and supervisory staff. The manpower
9
requirement in accordance with the targeted production of plant operation has been
estimated on the following consideration:-
1. The estimated production and productivity level which is achievable in various sections of
the plant with the proposed plant and machineries.
2. The total number of personnel required to perform various duties associated with the
different processing steps leading to production of steel billets, Re-rolled Products,
captive power plant and Wheat products.
A preliminary estimate of the manpower requirement for the proposed project are based on
the industry norms taking into account leaves, absenteeism, sickness and holidays for smooth
and efficient operation of the plant. Further, the implementation of industrial laws and
regulations and location factors of labour employment will also have to be considered.
Division wise man power requirement are as under:-
S.No. Division Requirement
1 Sponge Iron Division 125
2 SMS Division 100
3 Rolling Mill 75
4 Power Plant 75
5 Common 125
Total 500
Besides above unit creates indirect job opportunities for thousands of people. Various kinds
of skilled and unskilled workers employed in the steel industry all over the country are
majority from U.P. and Bihar. As such getting a chance to work in their own region would be a
big attraction and therefore adequate manpower will be easily available.
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Chapter – 3 : PROJECT DESCRIPTION
3.1 TYPE OF THE PROJECT

Company intends to
• Manufacture 2,31,000 TPA of Sponge Iron by installing 2 x 350 TPD DRI Kilns.
• Manufacture 2,47,500 TPA of MS Billets by installing 3 x 25 T capacity Induction

furnace with Continous casting.
• Manufacture 2,47,500 TPA of MS Re-Bars (TMT) and structural steel by installing 1 x

750 TPD capacity Rolling mill.
• Power generation of 16 MW through Waste Heat Recovery from 2 x 350 TPD DRI Kilns
by installing 2 x 40 TPH WHRB boiler.
• Power generation of 24 MW through 1 x 110 TPH FBC based boiler.
3.2 LOCATION OF THE PROJECT

• Project location is Plot No. AL-2, Sector 23, GIDA Industrial Area, Village Sahbazganj &
Domharmafi, Tehsil Sahjanwa, District Gorakhpur, Uttar Pradesh.
• 79 acres of land is envisaged for the proposed project and same is taken on lease from
GIDA.
• The project area will span between Latitude 26°45'14.37"N - 26°45'45.68"N &
Longitude 83°12'6.95"E - 83°12'27.53"E.
• The entire project area will fall in the Survey of India topo sheet no. G44L5.
• The Index map of the project site is shown in Figure – 1.
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Project Site
12
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3.3 DETAILS OF THE ALTERNATE SITES

No alternate site has been considered for the present proposal, as the location is in
Gorakhpur Industrial Development Authority (GIDA) and total land of 79 acres has already
taken on lease from GIDA.
3.4 SIZE OR MAGNITUDE OF OPERATION

S.No. Units Plant Configuration
(Production Capacity)
1. DRI Kilns 2 x 350 TPD
(Sponge Iron) (2,31,000 TPA)
2. Induction Furnace with Concast 3 x 25 T
(MS Billets) (2,47,500 TPA)
3. Rolling Mill 1 x 750 TPD
(MS Re-Bars (TMT) and structural steel) (2,47,500 TPA)
4. Power Plant WHRB – 2 x 40TPH 16 MW
(Electricity) (40 MW) FBC – 1 x 110TPH 24 MW
3.5 MANUFACTURING PROCESS

3.5.1 DRI KILN BASED SPONGE IRON PLANT
It is proposed to install 2 DRI Rotary Kiln of 350 TPD capacities. The annual capacity of the DRI
unit will be 2,31,000 MT. The process for the production of sponge iron consists of the
reduction of iron ore / pellets with solid carbonaceous material (coal/coke/lignite) in a rotary
kiln at high temperature, cooling to room temperature in the rotary cooler with indirect water
cooling system, screening and magnetic separation of the product. Sponge iron being
magnetic gets attracted and separated from the non-magnetic char. The Kiln is inclined at 2°
approximately. In the process for the production of sponge iron, the raw materials (iron ore /
pellets, feed coal and lime stone /dolomite) are fed to the rotary kiln through feed tube in a
pre-determined ratio by electronic weighing equipment. Rotary kiln is rotated by an AC
variable speed motor at a steeples variable speed ranging from 0.2 to 1.0 rpm. Due to
inclination and rotary motion of the kiln the material moves from the feed end of the kiln to
the discharge end in approximately 12 hrs. (Tendency time). The fine coal is blown counter
currently from the discharge end of the kiln to maintain the required temperature and the
carbon concentration in the bed. The kiln has seven shells air fans mounted on the top which
blow air in the respective zones to maintain the required temperature profile. The material
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and the hot gasses move in the counter current direction and as a result Iron Ore / pellets
gets pre-heated and gradually reduced by the time it reaches the discharge end.
The kiln is divided into two zones namely pre-heating zone and reduction zone. The pre-
heating zone is normally 30% of the total length of the kiln and the rest is taken as the
reduction zone. The material gets heated to the reduction temperature in the pre-heating
zone up to 500°C, the iron ore / pellets, coal and limestone gets dried and all the moisture is
vaporised. Thereafter, the material moves to reduction zone. In reduction zone, the iron ore/
pellet is deoxidized where the magnetite is reduced to metallic iron. Temperatures are
maintained at around 10000C in this zone to enable the de-oxidization of the Iron ore/ Pellet.
Coal contains sulphur in it. During the decomposition of the coal the sulphur is released in the
form of Iron sulphide. The iron sulphide (FeS) has deleterious effect in the steel making and is
to be removed. So limestone is used to prevent the sulphur pick up by the sponge iron. All the
above reactions are possible only in the presence of CO. The generation of the CO is most
important reaction, which is called the Boudard reaction. This reaction is highly endothermic
which is also reversible. The conditions favourable for the forward reaction i.e. the generation
of CO is:
• The higher temperature favours the production of CO.
• The concentration of the reactants has to high so that the forward reaction occurs.
• Low pressure favours the CO generation.
Oxygen required for the burning of these combustibles is supplied from the air tubes placed
along the length of the kiln. By controlled combustion, the temperature in the various zones is
maintained so that the reduction is proper and to sufficient degree. The reduction of iron
ore/pellet is topo-chemical i.e. the reduction proceeds from the surface to the core. The iron
ore/pellet on partial reduction has all the different stages of the reduction. The hot material
after the reduction is complete is then transferred to the rotary cooler via the transfer chute.
The rotary cooler is made up of Mild Steel shell. It is inclined at 2° approximately and rotates
at variable speed from 0.2- 1.2 rpm. It is driven by an AC variable speed motor. The water is
sprayed on the top of the shell, which cools the material inside the cooler indirectly. The heat
from the material is extracted by the shell. In order to increase the surface area for the heat
extraction fins are welded inside. Complete shell is covered by thin layer of water. The heat is
transferred from the shell to the water by convection. By this the material gets cooled to
80oC and is discharged on the belt conveyor by the double pendulum valve. The double
15
pendulum valve acts as the seal for the prevention of the atmospheric air into the kiln cooler
system. The total kiln cooler system is kept under positive pressure. This prevents the
atmospheric air from getting into the system. The kiln has to be always operated on positive
pressure, as any leakage into the system will cause the re-oxidation of the sponge iron
thereby causing the drop in the quality of the product. The material after the discharge from
the cooler is dropped on to the cooler discharge conveyor. A diversion chute is provided at
the head end of this conveyor for diversion of the material in case of break down in the
production separation. The material is then sent to the product separation system. In product
separation system consisting of double deck screen, the material is screened to 0-15 mm size
fractions. The oversize i.e. +20 mm obtained is small quantity so it is taken on the floor or
diverted to the sponge iron bin. The 0-3mm size fraction is called the fines are fed to a drum
type magnetic separator where the magnetic sponge iron fines and the non-magnetic
dolochar separated and fed to the respective bins through the chutes and conveyor. The
coarser fraction is similarly separated by another magnetic separator and fed to respective
bins. This magnetic fraction is called the sponge iron lumps and the non- magnetic as
dolochar which is the unburned coal. This dolochar acts as a fuel for our captive power plant.
As such, it is transferred to power plant through conveyors and is consumed along with coal
in there boiler to generate power. The gasses, which flow in the counter current direction of
the material, go to the dust-settling chamber where the heavier particles settle down. These
particles are continuously removed by the wet scrapper system. The gasses then pass to the
After Burner Chamber (or Post Combustion Chamber – PCC) where the residual carbon or CO
is burned by the excess air available. The gasses are at high temperature and have lot of heat
energy, which shall be utilized for the power generation through the waste heat recovery
boiler. The hot gasses after the heat recovery boiler get cooled to below 200°C. The gases are
then cleaned passing the gasses to ESP (Electrostatic precipitator). This clean gas at a
temperature of below 90 degree centigrade is passed into the atmosphere through the
chimney.
16
3.5.2 STEEL MELTING SHOP

It is proposed to install 03 Induction Furnace with a capacity of 25 MT/Heat, these Furnaces
are based on new power savings technology. The Annual capacity of the Steel Melt Shop unit
will be 2,47,500 MTPA having Induction Furnace route along with continuous casting
machine.
Selection of Equipment:
Medium Frequency Induction Furnace
Plant will have 3 Nos. Induction Furnaces and these will utilize:-
1. M. S. Scrap / C. I. Scrap / Pig Iron – 20.01%
2. Continuous Feeding of DRI – 79.99%
Melting and Tapping from Induction Furnace – 144 Min. (10 Heats / Day)
The induction melting technology has brought a significant revolution where it has been
proved that the steel produced out of sponge iron mixed with Cast Iron and M.S. Melting
Scrap/Pig iron coupled with electric induction furnace, medium frequency, constant power
track has become formidable process and can offer better economics at a relatively smaller
scale operations. The process involves the charge mix of Raw material mainly Sponge Iron, C.
I. Scrap / M. S. Scrap, into molten bath with constant power track through Solid State
17
generator converting A.C. Power into D.C. Power and again to convert the same into A.C.
Power after changing the frequency of cycle in between 250 to 500 HZ through thyresters (an
electronic device). This converted A.C. power with a frequency of 250 to 500 HZ is passed
through capacitor Rack after achieving the de-sired voltage and the same is passed through
copper Bus Bar into Molten bath having copper coil, cooled through water circulation,
transparent the heat energy into molten bath at constant voltage to melt the Iron and Steel at
a temperature of 1625°C. The continuous effort made by technologists has led to the
development of the process parameters by which considerable quantity of sponge iron are
used in steel making. This has brought a new era in steel melting technology in the country
where scrap scarcity can no more be a threat to the mini steel plants.
Continuous Casting Machine:
Liquid Metal from Induction Furnace is carried in a ladle over the Concast Machine. The liquid
metal flows from the ladle through a slide gate system underneath it into water cooled
copper mould tubes which solidifies the liquid metal into a square shaped mould which we
call as M.S. Billets. From the considered casting cycle time, the number of strands required to
cast 100 mm sq. to 150 mm sq. billets is worked out to be two (2). Based on the above, 2 –
strand billet casting machine suitable for casting up to 200 mm sq was selected. The caster is
6/11 meter radius machine with two strands with a provision to add one more strand in
future.
3.5.3 ROLLING MILL

It is proposed to install Rolling Mill for manufacture of TMT bars and Structural Steel of a
capacity of 750 MT/Day resulting in an annual capacity of 2,47,500 MTPA. The proposed mill
will be designed as per the latest layout with stands in length, so as to enable higher
productivity and better quality. In the Hot rolling process MS Billets are rolled into TMT bars
by passing through a number of stands as per the Final size (Dia) required. Finally the bars are
cut into 12 M length and bundled size wise for checking & dispatching.
In the proposed plant Majority of the materiel (MS Billet) will not require re-heating as they
will be fed to rolling directly from the CCM in hot state, some materiel will be required to be
Re-Heated for which a suitable capacity Reheating Furnace is proposed. The proposed mill
will be able to manufacture TMT of size 8 MM to 40 MM.
18
3.5.4 POWER PLANT

It is proposed to install 24 MW FBC and 16 MW WHRB based power plant. The Company
proposes installation of 01 number of 110 TPH FBC boiler which will generate 24 MW of
Power and 02 number of 40 TPH WHRB Boiler which will generate 16 MW of power making a
total capacity of 40 MW. The proposed CPP consist of 02 waste heat recovery boiler of 40 TPH
steam generation capacity and one Fluidised Bed Combustion Boiler (FBC) of 110 TPH.
Company will be installing turbine (Turbo Generator) of the matching capacity to the boilers
to produce the total 40 MW of Power.
WHRB Power Plant

The waste heat recovery boiler of both the Kilns will generate about 40 TPH of steam each
with the outlet parameters of 110 Ksc(a) and 640 Deg. C., while taking in the feed water at
160° C from the de-aerator. The entire waste gas from the sponge iron kiln will be utilized in
the waste heat boiler for the steam generation.
19
Total 80 TPH of steam generated in the boilers is fed to the main steam line. About 0.25 TPH
of steam is used for the ejector and turbine gland sealing after pressure and temperature
reduction to 235 Deg.C. Around 0.096 TPH of feed water is used as spray. 68.36 TPH of steam
is fed to the extraction cum condensing turbine. The uncontrolled extraction from the turbine
at 6.5 Ksc (a) gives 6.26 TPH of steam approximately at a temperature of 231 Deg.C. This
steam is used in the de-aerator, for heating up the feed water to temperature of 160 Deg.C.
FBC Power Plant

Fluidised bed combustion is a “Clean Technology for a better tomorrow” where technology
and economy have been interwoven harmoniously in quest of a better environment. The
environmentally friendly perspective of this technology is as follows:
1. At the low combustion temperature of 850°C / 900°C, no Nitrogen Oxides result from the
Nitrogen in the combustion air, with the end result of extremely low Nox emissions even
with fuels rich in Nitrogen.
2. Formation of SOX is essentially prevented by the addition of limestone. This is both mixed
into the fuel and blown into the combustion chamber. Due to the favourable conditions in
the fluidized bed, about 90% of the resulting Sulphur Oxides can be removed.
3. Better Plant flexibility at partial loads of about 25% and quick load changes.
4. Low Auxiliary Power consumption compared to other coal fired Boiler versions.
The Steam Generator would be semi-outdoor type, natural circulation, and balanced draft,
Single drum, designed for firing different grades of coal. The Boiler is of bubbling fluidised bed
type to handle even high ash coal. Capacity of FBC coupled with adjacent WHRB has been
selected to ensure adequate margin over the requirement of turbine at 100% MCR. FBC
would be designed to operate with “The HP heaters out of service” condition (resulting in
lower feed water temperature at Economizer inlet) and deliver Steam to meet the Turbo-
Generator requirement at 100% MCR. Economizer section of the Boiler would be non-
Steaming type. Super heater sections would be convection type and designed so as to
maintain rated Steam temperature of 540°C (:i: 5°C) at super heater outlet over the control
range of 60% to 100%, MCR. Attemperator is provided at the outlet of convection super
heater for temperature control at Steam Generator outlet. The Boiler furnace and flue gas
passages would be designed for appropriate low velocities in order to minimize erosion.
Suitable balanced draft System would be provided for the Steam Generator with one forced
20
draft and one induced draft fans. Each of these fans would be capable of meeting the air
requirement at 100% Boiler MCR load. The forced draft fans would be radial type with inlet
vane control for regulation of airflow. The induced draft fans would be radial type with multi
louver damper control the regulation. The forced draft fans would control total air flow to
Boiler and the induced draft fan would control furnace draft of the Boiler through automatic
control loops. In addition to the FD fan, one primary air fan of 100% capacity shall be provided
for transportation of fuel. The Boiler would be top supported type and would be provided
with all supporting Steel platforms, galleries and stairways for easy approach and
Maintenance of the Unit. Adequate weather protection would be provided for instruments
and operating personnel. Necessary insulation along with skin casing to limit outside surface
temperature to the safe level would be provided.
Steam Turbine Generators and Auxiliaries
Steam Turbine
The Steam Turbine will be of condensing type. The set will be complete with Condenser, Air
Evacuation System, 100% Condensate Extraction Pumps, Generator Cooling, System, Gland
Sealing with Gland Vent Condenser, Lube Oil System, LP & HP Re-generative Feed Heaters,
etc.
Excitation System
The Excitation System envisaged will be brush-less type. The Excitation System shall be
capable of Supplying the Excitation Current of the Generator under all condition of Operation
of Load, Voltage and Power. Rated current and Voltage of the Exciter shall be at least 120% of
normal Excitation Current and at least 110% of no Load Excitation Voltage with maximum of
140% ceiling. The Exciter response ratio shall be greater than 1.5. The Field Breaker and Field
Suppression System will also be part of Exciter System. Automatic high speed Thyristorised,
Auto Manual AVR capable of maintaining Steady State Terminal Voltage within :I: 0.5% of the
present Value under all Operating Conditions and capable of smooth and continuous running
over the Operating Range. The Generators shall be provided with Temperature Detector
embedded at different location, i.e. Stampings, Stator Windings, etc.
Air cooled condensers envisaged for Power plant to conserve water.
21
3.6 RAW MATERIAL REQUIREMENT

The following will be the raw material requirement for the proposed project:
Raw Material Quantity Source Mode of Transport

(TPA)
For DRI Kilns (Sponge Iron) – 2,31,000 TPA
Iron Ore 1,84,800 Orrisa By Rail
Pellet 1,84,800 Orrisa By Rail
Indian Coal 2,52,000 Jharkhand By Rail
Coal Indonesia / South
Imported Coal 1,89,000 Through sea route & Rail
Africa / Australia
By road
Dolomite 11,550 Local Area
(through covered trucks)
For Steel Melting Shop (MS Billets) – 2,47,500 TPA
Sponge Iron 2,31,000 Own generation ----
By road
MS Scrap / Pig Iron 55,000 Local Area
By road
Ferro alloys 3,700 Local Area
For Rolling Mill (TMT bars & Structural Steel) – 2,47,500 TPA
Own generation ----
Steel billets 2,65,000
Purchased from By road
outside (through covered trucks)
Furnace Oil 13,000 HPCL/IOCL depots By road
(through tankers)
For FBC Boiler - Power Generation 24 MW
Dolochar 35,000 Own generation ----
Indian Coal 1,00,000 Jharkhand By rail
Coal Indonesia / South
Imported Coal 36,000 Through sea route & Rail
Africa / Australia
By road
Rice Husk 40,000 Local Market
Note: Railway siding is proposed in the present proposal.
22
3.7 WATER REQUIREMENT AND ITS SOURCE

Water required for the proposed project will be 1800 KLD and same will be sourced from
Ground Water source. Necessary permission will be obtained from the Ground Water
Department. Following is the break up of water requirement:
S.No. Unit Water requirement (KLD)

1. DRI kilns 480
2. Steel Melting Shops 230
3. Rolling Mills 300
4. Power Plant 780
5. Domestic 10
Total 1800
Note: Air Cooled Condenser are proposed in the power plant
3.8 WASTEWATER GENERATION & ITS MANAGEMENT
• There will be no effluent generation in the DRI plant, SMS, Rolling Mill as closed circuit
cooling system will be adopted.
• Effluent from power plant will be treated and after ensuring compliance with SPCB norms,
it will be utilized for dust suppression, ash conditioning and for greenbelt development.
• Sanitary waste water will be treated in septic tank followed by sub-surface dispersion
trench.
3.9 SOLID WASTE GENERATION AND ITS MANAGEMENT
S.No Waste Quantity Method of disposal

(TPD)
1 Ash from DRI 340 Will be given to Cement Plants & Brick
manufacturers.
2 Dolochar 305 Will be used in FBC power plant as fuel.
3 Kiln Accretion Slag 10 Will be used in road construction & given to
brick manufacturer.
4 Wet scrapper sludge 47 Will be used in road construction & given to
brick manufacturer.
5 SMS Slag 100 Slag from SMS will be crushed and iron will be
recovered & then remaining non -magnetic
material being inert by nature will be used as sub
base material in road construction/brick
23
S.No Waste Quantity Method of disposal

(TPD)
manufacturing
6 Mill scales from 50 Will be reused in the SMS
Rolling Mill
7 Ash from Power 180 Ash generated is being given to Cement Plants /
Plant Brick Manufacturers
(with Indian Coal)
3.10 POWER REQUIREMENT

During Construction Phase
Power requirement for the proposed project will be met from State Electricity Board during
construction phase.
During Operation Phase
The total power requirement for the proposed project will be 45 MW, this will be met mainly
with captive power plant of 40 MW (i.e. 16 MW WHRB and 24 MW FBC based power plant), A
load of ~5 MW is proposed to be procured from the state grid i.e. Purvanchal Vidyut Vitran
Nigam Limited (PuVVNL).
Following is break up of power requirement:

S.No. Unit Power Consumption Power Requirement
1. DRI (2,31,000 TPA) 115 Kwh/ton 4.0 MW
2. SMS (2,47,500 TPA) 10MW x 3 Furnace 30.0 MW
3. Concast & Aux. LS 2.0 MW
4. Rolling Mill (2,47,500 TPA) 150 Kwh/ton 5.0 MW
5. Power Plant – WHRB Aux. Consumption @ 1.6 MW
(16 MW) 10%
6. Power plant – FBC Aux. Consumption @ 2.4 MW
(24 MW) 10%
Total 45 MW
24
Chapter – 4 : SITE ANALYSIS
4.1 INFRASTRUCTURE
For establishment and successful operation of plant, it is imperative to ensure availability of
the following infrastructure:
• Availability of raw coal & iron ore and its proximity to the plant to reduce cost of
transportation.
• Road / Rail head connection so that the raw materials and products can be easily and
economically transported.
• Availability of water.
• Permanent and reliable source of power.
• Adequate land for the plant, storage of raw material and products & disposal of waste
material.
4.2 CONNECTIVITY
The proposed site is well connected with Road network. The following table gives brief
regarding connectivity of the proposed site:
Component Description
Road : Project site is located adjacent to NH # 28.
Rail : Nearest station – Sahjanwa Railway Station – 0.6 Kms.
Air : Gorakhpurt Airport – 22.0 Kms.
25
Below mentioned table gives brief regarding environmental setting of the project site
S.No Particulars Distance from the site

1. Habitation = Vill. Sahbajganj, Sahjanwa (adjacent to site)
2. National Park = No National Park is situated within the 15 km
radial distance periphery
3. Wild life sanctuaries = Nil
4. Eco Sensitive Areas = Nil
5. Forests = Nil
6. Surface water bodies = Rapti River – 3.5 Kms.
Aami River – 4.2 Kms.
7. Costal Regulation Zone [CRZ] = Nil
4.2 Land details

• 79.0 acres of land is envisaged for the proposed project and same is taken on lease
from GIDA.
Longitude 83°12'6.95"E - 83°12'27.53"E.
26
Chapter – 5 : PLANNING BRIEF
5.1 PLANNING CONCEPT

In view of the tremendous market potential of iron & steel products promoters have decided
to set-up an Integrated Steel Plant with Captive Power Plant. This project shall consist of
production of Sponge Iron (DRI), Steel Billets, Re-rolled products (TMT Bars and structural
steel) with Captive Power Plant. Integration and Captive power will make the project
profitable and make it financially more viable. The in-house consumption of sponge iron for
manufacturing of billets, which would further be rolled into TMT bars and captive power plant
utilizing the waste heat rejects from the sponge iron would improve the overall profitability of
the project. The modules of the projects are as follows:

1. DRI To produce sponge iron by installing 02 Rotary Kiln with a
(Sponge Iron) capacity of 350MT/Day, Assuming 330 Working days in a
year the final annual capacity comes to 2,31,000 MT. This
production of Sponge Iron will be utilized in the in-house
Steel Melt Shop (Induction Furnace with Continuous
Casting) to produce Steel Billets. Further, the waste heat
of sponge iron kilns shall be utilised by the captive power
plant for power generation up to 16MW
2. Steel Melting Shop To produce Steel Billets by installing 03 Induction
(MS Billet) Furnaces of 25 MT/Heat. Considering 10 Heats per day
with 330 working days in a year the annual capacity
comes 2,47,500 MT. This production will be further used
to meet the requirements of the In – House Rolling Mill.
3. Rolling Mill To manufacture MS Re-Bars (TMT) and structural steel by
(MS Re-Bars & installing rolling mill of 750 MT per Day. At 330 Working
Structural Steel) Days per year the annual capacity comes to 2,47,500 MT.
This will be the final finished product of the proposed unit.
The proposed mill will be set up on the concept of Hot
Rolling of the Billets from the Continuous Casting Machine
27

to save power.
4. Captive Power Plant To generate captive power for the entire project
requirement of 40 MW and efficient utilization of waste
heat (Gases) and solid waste (Dolochar) coming out from
DRI kilns. This will reduce the overall cost of power
significantly. Entire power shall be consumed by the unit
itself. A 40 MW Turbo Generator (TG) will be installed with
16 MW WHRB and 24 MW FBC Boiler. The above shall
fulfil almost the entire need of power of the proposed
project.
5.2 POPULATION PROJECTION

Gorakhpur city is governed by Municipal Corporation which comes under Gorakhpur
Metropolitan Region. The Gorakhpur city is located in Uttar Pradesh state of India.
As per provisional reports of Census India, population of Gorakhpur in 2011 is 673,446; of
which male and female are 353,907 and 319,539 respectively. Although Gorakhpur city has
population of 673,446; its urban / metropolitan population is 694,889 of which 365,405 are
males and 329,484 are females.
Hinduism is majority religion in Gorakhpur city with 77.88 % followers. Islam is second most
popular religion in city of Gorakhpur with approximately 20.61 % following it. In Gorakhpur
city, Christinity is followed by 0.74 %, Jainism by 0.04 %, Sikhism by 0.18 % and Buddhism by
0.18 %. Around 0.01 % stated 'Other Religion', approximately 0.48 % stated 'No Particular
Religion'.
In education section, total literates in Gorakhpur city are 506,694 of which 281,118 are males
while 225,576 are females. Average literacy rate of Gorakhpur city is 83.91 percent of which
male and female literacy was 88.67 and 78.65 percent.
5.3 LAND USE PLANNING

• 79.0 acres of land is envisaged for the proposed project and same is taken on lease
from GIDA.
28
Longitude 83°12'6.95"E - 83°12'27.53"E.
5.4 AMENITIES / FACILITIES
Facilities like canteen, rest room, first ai, prkingd will be provided as basic facilities to workers.
29
Chapter – 6 : PROPOSED INFRASTRUCTURE
6.1 INDUSTRIAL AREA (PROCESSING AREA)

The main plant area comprises of DRI Kilns, Furnace sheds, Rolling mill area, raw material
storage and product storage etc.
6.2 RESIDENTIAL AREA (NON PROCESSING AREA)

No colonization is proposed; however, facilities like canteen, rest room and indoor games
facilities will be provided in the proposed plant and one Admin building is also proposed.
6.3 GREEN BELT
More than 1/3rd of total land availability is reserved for plantation i.e. greenery.
Greenbelt development plan
• Local DFO will be consulted in developing the green belt.

• Greenbelt of 33% of the area will be developed in the plant premises as per CPCB
guidelines.
• 15 m wide greenbelt is being maintained all around the plant.
• The tree species to be selected for the plantation are pollutant tolerant, fast growing,
wind firm, deep rooted. A three tier plantation is proposed comprising of an outer
most belt of taller trees which will act as barrier, middle core acting as air cleaner and
the innermost core which may be termed as absorptive layer consisting of trees which
are known to be particularly tolerant to pollutants.
6.4 SOCIAL INFRASTRUCTURE

Social infrastructure will be developed as per need based in the Villages of the close vicinity of
the project.
30
6.5 CONNECTIVITY
The proposed site is well connected with Road network. The following table gives brief
regarding connectivity of the proposed site:
Component Description
Road : Project site is located adjacent to NH # 28.
Rail : Nearest station – Sahjanwa Railway Station – 0.6 Kms.
Air : Gorakhpur Airport – 22.0 Kms.
A private Rail Siding will be made within the plant premise from the NER Rail track adjacent to
the site for inward raw materiel.
6.6 DRINKING WATER MANAGEMENT

It is estimated that 10 KLD of water will be required for domestic purpose during operation of
proposed project.
The desired amount of water will be Sourced from Ground water sources.
6.7 WASTEWATER GENERATION & ITS MANAGEMENT

• There will be no effluent generation in the DRI plant, SMS & Rolling Mill as closed circuit
cooling system will be adopted.
• Effluent from power plant will be treated and after ensuring compliance with SPCB
norms, it will be utilized for dust suppression, ash conditioning and for greenbelt
development.
• Sanitary waste water will be treated in septic tank followed by sub-surface dispersion
trench.
31
Chapter – 7: REHABILITATION & RESETTLEMENT (R & R) PLAN
No rehabilitation and resettlement is required for the proposed project, as the proposed project
site is located in notified GIDA Industiral area.
32
Chapter – 8 : PROJECT SCHEDULE & COST ESTIMATES
8.1 PROJECT SCHEDULE

The installation of several production units along with utilities and services require
cooperation for procurement of equipment, equipment foundations, award of all contracts
and supervision of all construction jobs at plant site. The project implementation schedule has
been drawn up to maintain a strict time schedule. The factors which are responsible for
timely implementation of the project are :-
1. Arrangement of proper finance for the project.
2. Finalization of layout of the proposed plant.
3. Design of utilities and services.
4. Placement of orders for plant and machinery.
5. Arrangements for Govt. sanctions and supply of power.
6. Recruitment of personnel.
Construction materials
It is envisaged that cement, reinforcing steel and structural steel materials, sheets will be
procured by the company and issued to the contractors free of cost or at agreed recovery
rates. For this, advance action has to be initiated by the company so that these materials are
sufficiently stored in adequate quantity before commencement of the work at site. All other
construction materials will be procured by the contractors or as per terms decided.
Construction facilities
Construction facilities will mainly include providing infrastructural arrangement like water,
power, road, drainage storages etc. Company proposes that entire construction shall be done
by a competent civil contractor. The Installation of plant & machinery will carried on by the
suppliers and their competent Vendors. Fabrication work will be carried out on-site by
suitable contractors.
Proposed Project will be implemented in 48 months from the date of receipt of
Environmental Clearance from the MoEF&CC, New Delhi & Consent from SPCB.
33
8.2 PROJECT COST

The cost of project has been estimated on the following basis:
a) Working experience of the company.
b) Facilities set up recently in India.
c) Information’s collected from published sources of new units/under construction.
d) Estimates made by technical experts having specialized experience in this field.
e) Market information.
The Total Estimated Cost of the proposed project is Rs. 275.00 Crores.
S.No. Plant Amount (Crore Rs.)
1 DRI (Sponge Iron) 70.00
2 SMS (Induction Furnace) 30.00
3 Rolling Mill (MS Bars) 35.00
4 Captive Power Plant 120.00
5 Land, Site, Misc 20.00
Total 275.00
34
Chapter – 9 : ANALYSIS OF PROPOSAL
9.1 FINANCIAL AND SOCIAL BENEFITS
With the implementation of the proposed project, the socio-economic status of the local
people will improve substantially. The land rates in the area will improve in the nearby areas
due to the proposed activity. This will help in upliftment of the social status of the people in
the area. Educational institutions will also come-up and will lead to improvement of
educational status of the people in the area. Primary health centre will also be developed by
us and the medical facilities will certainly improve due to the proposed project.
9.2 SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES
The management is committed to uplift the standards of living of the villagers by undertaking
following activities / responsibilities as the part of Corporate Social Responsibility.
➢ Health & hygiene

➢ Drinking water
➢ Education for poor
➢ Village roads
➢ Lighting
35

Pre-Feasibility Report: Ankur Udyog Limited (Steel Division)

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PRE-FEASIBILITY REPORT

Ankur Udyog Limited (Steel Division)

Chapter –1:EXECUTIVE SUMMARY ......................................................................................................... 1

5.4 AMENITIES / FACILITIES .......................................................................................................... 29

Chapter –1:EXECUTIVE SUMMARY

S.No. Units Plant Configuration

1.2 PROJECT PROPONENT

Year Nos. of Spindles Installed

Chapter – 2: INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

2.1 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT

S.No Division Rational

S.No Division Rational

2.3 DEMAND AND SUPPLY GAP

2.4 EXPORT POSSIBILITY

2.5 DOMESTIC/EXPORT MARKETS

Indian steel industry : Production for Sale (in million tonnes)

2.6 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT

Chapter – 3 : PROJECT DESCRIPTION

3.1 TYPE OF THE PROJECT

• Manufacture 2,47,500 TPA of MS Billets by installing 3 x 25 T capacity Induction

• Manufacture 2,47,500 TPA of MS Re-Bars (TMT) and structural steel by installing 1 x

• Power generation of 24 MW through 1 x 110 TPH FBC based boiler.

3.2 LOCATION OF THE PROJECT

3.3 DETAILS OF THE ALTERNATE SITES

3.4 SIZE OR MAGNITUDE OF OPERATION

3.5 MANUFACTURING PROCESS

3.5.2 STEEL MELTING SHOP

3.5.3 ROLLING MILL

3.5.4 POWER PLANT

WHRB Power Plant

FBC Power Plant

Air cooled condensers envisaged for Power plant to conserve water.

3.6 RAW MATERIAL REQUIREMENT

Raw Material Quantity Source Mode of Transport

Note: Railway siding is proposed in the present proposal.

3.7 WATER REQUIREMENT AND ITS SOURCE

S.No. Unit Water requirement (KLD)

3.8 WASTEWATER GENERATION & ITS MANAGEMENT

3.9 SOLID WASTE GENERATION AND ITS MANAGEMENT

S.No Waste Quantity Method of disposal

S.No Waste Quantity Method of disposal

3.10 POWER REQUIREMENT

Following is break up of power requirement:

Chapter – 4 : SITE ANALYSIS

the following infrastructure:

• Permanent and reliable source of power.

regarding connectivity of the proposed site:

S.No Particulars Distance from the site

4.2 Land details

Chapter – 5 : PLANNING BRIEF

5.1 PLANNING CONCEPT

S.No Division Rational

S.No Division Rational

5.2 POPULATION PROJECTION

5.3 LAND USE PLANNING

5.4 AMENITIES / FACILITIES

Chapter – 6 : PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA (PROCESSING AREA)

6.2 RESIDENTIAL AREA (NON PROCESSING AREA)

6.3 GREEN BELT

Greenbelt development plan

• Local DFO will be consulted in developing the green belt.

6.4 SOCIAL INFRASTRUCTURE