M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. · 2019-03-05 · M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. Pre-Feasibility Report For Mini-Integrated Steel Plant of 1,32,000 Metric Tons

M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. Pre-Feasibility Report For Mini-Integrated Steel Plant of 1,32,000 Metric Tons/ Annum

TMT/MS Rods Production near Haraginadoni Village, Bellary Taluk & District, Karnataka

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CONTENTS

Chapter No. Description Page No.

1 Executive Summary 02

2 Introduction of the Project 04

3 Project Description 06

4 Site Analysis 11

5 Planning Brief 13

6 Proposed Infrastructure 21

7 Rehabilitation & Resettlement (R&R) Plan 22

8 Project Schedule & Cost Estimates 27

9 Analysis of proposal (Recommendations) 30



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1. EXECUTIVE SUMMARY

Name of the Project M/s. Sri Subramanya Sponge Iron Pvt. Ltd.

Address of the Proponent VBR Nilayam, Ground Floor, 1st Cross Sowdagar Colony, Vidya Nagar Bellary-583 104, Karnataka, India

Project Location Sy. Nos. 135, 136, 137, 138, 139 & 140 Haraginadoni Village Bellary Taluk & District Karnataka State

Total Plot Area Present: 14.80 Acres Future: 42.0 Acres Total: 56.80 Acres

Type of Land Agricultural Land being converted for Non-Agricultural Purpose

Plant Capacity Mini-Integrated Steel Plant of 1,32,000 Metric Tons Per Annum (TPA) Capacity TMT/MS Roads Production

Phase I 2 x 75 TPD Sponge Iron Plant

Phase II 2 x 100 TPD Sponge Iron Plant 2 x 20 TPH Induction Furnace With ingot/ billet caster

Phase III 1 x 25 TPH Rolling Mill 8 MW Captive Power Plant

Raw Materials Raw Material Annual Quantity

Source

Iron Ore Lumps/ Pellets

1,58,000 TPA Through E-Auction

Non-Coking Coal

1,10,500 TPA Indigenous/ Imported

Limestone/ Dolomite

3,400 TPA Within Karnataka

Pig Iron 36,000 TPA Local Sources

Ferro-Alloys 2,500 TPA Local Sources



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Water Requirement Project Phase: 45-50 KLD (Max.)

Operational Phase: 375-400 KLD

Source: Ground Water from Bore Wells

Power Requirement Project Phase: 4-5 MW

Operational Phase : 25 MW

Source: Gulbarga Electricity Supply Company Limited (GESCOM), Karnataka

Total Man-power Project Phase 100-120 (Max.)

Operational Phase

Phase I 50

Phase II 125

Phase III 125

TOTAL 300

Total Project Cost Phase I Rs. 35.00 Crores

Phase II Rs. 78.00 Crores

Phase III Rs. 62.00 Crores

TOTAL Rs. 175.00 Crores



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2. INTRODUCTION 2.1 General:

Opening up of Indian Economy since 1990 onwards and with the

globalization of the world Economy, has resulted in enormous growth of

Indian Economy during the last two decades, achieving a status of one of the

largest fast growing economies in the world, clocking 6-8% annual cumulative

GDP growth. The standard of living of the population / citizens of any

country / economy is measured on the basis of per capita consumption of

steel, power / energy, literacy level (Educational), etc. One of the major

factors considered to access the living index for comparison purpose among

the comity of Nations of the World is the per capita consumption of electricity

and steel.

Due to economic liberalization and encouraging private sector in every sector

of development of economy, like Power, Steel, Aviation, Oil Exploration,

Transportation, Infrastructural Development, etc. Indian economy in the last

two decades, has grown enormously in size, value and is branded as a vibrant

developing Economy. Several medium sized Local Businessmen, who have

established themselves in business, with related activities, have started to

explore the opportunities to invest in manufacturing sector, Technology

Development, Trading and export of services from India.

Considering the above aspects, two dynamic entrepreneurs viz. Sri. B Bhaskar

Naidu and Sri. B. Kristaiah, both from the Iron Ore Rich Bellary District in

Karnataka, have established M/s. Sri Subramanya Sponge Iron Pvt. Ltd.,

(SSSIPL), in the year 2007. They had installed 1 x 75 Tons per Day (TPD)

Sponge Iron Plant, to produce the sponge iron from iron ore lumps and

pellets, to cater to the growing demand for sponge iron in Bellary-Hospet

region of Karnataka State. Subsequently, due to various reasons, the industry



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was closed by the Karnataka State Pollution Control Board, during September

2011.

The industry was declared as NPA by the Bank(s) and the matter was referred

for one time settlement and new management has taken over the company

entirely, during the period April/ May 2018. Due to various technical and

other reasons, the New Management had decided to retain and continue the

business in the same name viz. Sri Subramanya Sponge Iron Pvt. Ltd.

2.2 Identification of project and project proponent (in case of mining project

a copy of mining lease / letter of intent should be given):

Identification of Project Project: Mini-Integrated Steel Plant to produce TMS/MS Bars of 1,32,000 Tons/ Annum in Sy. No. 135, 136, 137, 138, 139 & 140 of Haraginadoni Village in Bellary Taluk & District of Karnataka State.

Project Proponent M/s. Sri Subramanya Sponge Iron Pvt. Ltd. Director(s): Sri. Tathineni Srinivas and Sri. S. N. Singh VBR Nilayam, Ground Floor, 1st Cross Sowdagar Colony, Vidya Nagar Bellary-583 104, Karnataka, India Email Id: [email protected]

2.3 Brief description of nature of the project:

At the time of taking-over by the New Management, M/s SSSIPL is having a

1x75 Tons per Day (TPD) capacity Sponge Iron Plant, installed at the site.

Also, the civil foundations for another 75 TPD capacity sponge iron plant

have been completed. After deep and through initial investigations of the

South Indian Market, availability of raw materials, labour, other logistical

supports and the government incentives supporting the sector, the New

Management of this industry have chosen to establish a mini-integrated steel

plant to manufacture finished products of construction steel (TMT/ MS Bars),

along with a 8 MW Co-Generation Power Plant, in the following Three

Phases:


Phase II 2 x 100 TPD Sponge Iron Plant



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2 x 20 TPH Induction Furnace With ingot/ billet caster


2.4 Importance of the Project to the Country and the Region

The future demand for TMT/ MS rods, like many other construction

materials, is a function of interrelated variables. Following are the factors that

determine the magnitude and trend of the demand for construction steel in

the country:

Overall economic development level and growth trend of the country

The pattern and growth trend of construction industry

Expected technological changes that affect the structure of the

construction industry

Government policies and regulations that have impact on the future

level and trend of the construction activities and size of population and

its growth

2.5 Demand- Supply Gap:

There is a good demand for Construction Steel (TMT/ MS bars) from the

Construction Industry, in the nearby cities/ towns like Bellary, Hosapate,

Sandur, Kudligi, Ananthapur (A.P) etc., due to various developmental

activities taking place in the region.

2.6 Imports vs. Indigenous Production:

It is also preferable for indigenous production of construction steel, in the

proposed Bellary District, due to various reasons like proximity to raw

materials, logistics support, potential market etc. and import may not be as

economically viable as indigenous production.

2.7 Export Possibility:

Not envisaged at this stage, as there is enough demand in the local market.



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2.8 Domestic/ Export Markets:

Export of product is not required, due to the fact that there is enough demand

in the local market and also the proposed production quantity is very

marginal.

2.9 Employment Generation (Direct and Indirect) due to the project.

In the proposed project related units, the plant is designed to operate 24

hours/ day (3 shifts per day), whereas all the administration, finance and

commercial departments will work only, in the day shift. About 300 direct

employment is generated and 350 indirect employment is likely to be

generated. The manpower required for operation and maintenance of the

proposed plant is estimated as below:

Category Phase I Phase II Phase III Total

Managerial 02 04 02 08

Supervisory 06 08 08 22

Skilled 09 25 20 54

Semi-Skilled 13 38 40 91

Unskilled/ other 20 50 55 125

TOTAL 50 125 125 300



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3. PROJECT DESCRIPTION 3.1 General

The proposed project is a Mini-Integrated Steel Plant to manufacture TMT

(Thermo-Mechanically Twisted)/ MS (Mild Steel) Rods, of 1,32,000 Tons Per

Annum Capacity, based on Sponge Iron Route.

3.2 Type of project incl. interlinked and interdependent project, if any:

It is an independent project, to produce Construction Steel (TMT/MS Rods),

using Iron Ore Lumps/ Pellets as raw material, with all in-built (integrated)

facilities. Hence, there are no interlinked and inter-dependent projects.

3.3 Location

The proposed unit is being located in an extent of 56.8 acres of industrially

converted land (applied for) in Sy. Nos. 135, 136, 137, 138, 139 & 140 of

Haraginadoni Village, near Kudatini, in Bellary Taluk & District of Karnataka

State. The chosen project site is adjacent to the Village Road, connecting

Haraginadoni Village with Bellary-Hospet National Highway (NH-63). It is at

about 5.2 km, from the National Highway (NH-63), in the state of Karnataka.

The chosen site is about 2.5 Km from Haraginadoni village, and about 15 KM

from the District Head Quarters i.e. Bellary.

Points Latitude Longitude

A 15009’18.63” N 76046’51.82” E

B 15009’12.30” N 76046’50.74” E

C 15009’11.60” N 76046’59.39” E

D 15009’18.54” N 76046’59.76” E

E 15009’19.36” N 76046’54.36” E

F 15009’18.22” N 76046’54.12” E

The location of the chosen site is shown below:



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Project Site



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3.4 Details of alternate sites, considered and the basis of selecting the

proposed site, particularly the environmental considerations gone into

should be highlighted.

Not applicable, due to the fact that, 1 x 75 TPD capacity sponge iron plant was

established by the earlier management and the new management wants to

make it as a mini-integrated steel plant, by way of forward integration-cum-

expansion, in the same plot and the surrounding areas.

3.5 Size or magnitude of operation:

The proposed mini-integrated steel plant will be a having an installed

capacity of 1,32,000 Tons Per Annum (TPA) of TMT/MS Rods production.

The proposed unit will be implemented in Three Phases, as given below:


Phase II 2 x 100 TPD Sponge Iron Plant 2 x 20 TPH Induction Furnace With ingot/ billet caster


3.6 Project description with process details (a schematic diagram/flow chart

showing the project layout, components of the project etc. should be given):

In the proposed mini-integrated steel plant of M/s Sri Subramanya Sponge

Iron Pvt. Ltd., it is envisaged to adopt Pre-Heating Technology based Sponge

Iron Units, followed by Induction Furnaces with billet/ ingot caster and a

Rolling Mill. In addition, there will be 8 MW capacity Captive Power Plant for

power generation. The plant will be designed with zero percentage

wastewater generation, controlled air pollution system and zero solid waste

generation, using more advanced pollution control equipment. The

description of various production units, is given below:

IRON MAKING

A. Hot Metal: Electric pig iron furnace (EPIF), Blast furnace (BF) process.



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B. Direct reduced: Direct reduction processes based on solid reductant.

Both steel scrap and DRI which are the main input materials for steel making

in the mini steel plant, are not easily available in the country and their prices

have been fluctuating and are on the increase. Hence SSSIPL have decided to

put up an integrated mini steel plant, starting from iron ore.

Commercially viable and technologically established processes for production

of iron from iron ore are direct reduction process based on solid reductant

and hot metal production processes. Being highly power intensive, EPIF

process has not been considered for the proposed project.

If BF process is considered for iron making downstream process for

converting hot metal into liquid steel is to be BOF steel making or high

capacity EAF steel making (since hot metal optimally constitutes about 30% of

metallic charge in EAF steel making).

Thus, the only option available for the SSSIPL project for iron making is

production of sponge iron or direct reduced iron (DRI) based on solid

reductant and hence the same has been considered for the proposed project,

and the same is already implemented partially (by the earlier Management).

COAL – Based Direct Reduction (DR) Process. Direct reduced iron (DRI) is produced by direct reduction process in which

oxides of iron ore are reduced by non-coking coal at a temperature range of

700 – 11000C, much below its melting point. Of the installed DR plants based

on solid reductant, SL/RN process accounts for over 50% of total production.

The balance is shared by ACCAR, CODIR, DRC, TDR, OSIL, KINGLOR

METOR and other processes.

ROTARY KILN processes are far better established amongst all coal based

processes. There are a number of Rotary Kiln plants in operation and a



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number of them are under installation in the states of Chattisgarh and also in

Karnataka. Of the different rotary kiln processes available the SL/RN process

is the most widely adopted process and has the maximum population of

operating plants especially with annual capacity in the range of 30,000 tons.

The original technology supplier for SL/RN process is LURGI, GERMANY.

However this technology is now available locally and there are a number of

suppliers who can give the technology and drawings with process guarantees,

and the ordering of all the critical equipment is completed. Certain equipment

have already started arriving at the project site. All the equipment are being

sourced locally after completing the evaluation of the available technology

suppliers. Hence the proven and commercially established SL/RN process is

adopted for the SSSIPL Plant.

The annual requirement of sponge iron for the SSSIPL plant is around 104,000

tons. Hence, SSSIPL are installing 2 Kilns of capacity 30,000 tons per

annum/kiln (100 Tons per day production capacity) along with 2 kilns of

22,500 tons per annum/ kiln (75 Tons per day production capacity). The first

kiln of 75 TPD is already installed and is closed due to various reasons

enumerated above. The civil foundation work for the second 75 TPD sponge

iron kiln is completed and the installation will start only after obtaining the

necessary approvals. The balance 2 kilns of 100 TPD capacity, will be

implemented as part of Phase II of the project.

STEEL MAKING PROCESS

Induction furnace and Electric arc furnace processes are considered for a mini

integrated steel plant.

INDUCTION FURNACE: India has witnessed an unprecedented growth in

induction furnace steel making since 1970s. The factors, which contributed to



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the growth in induction furnace steel making over electric arc furnace steel

making in India are as follows.

For a given power unit the daily liquid steel melting capacity of a

medium frequency IF is more than that of a regular powered arc

furnace due to its inherent characteristics like nearly unit power factor

operation, insignificant refining operation etc.

Induction Furnace can be connected with even weak power grids

without any power disturbances on the mains supply.

Elimination of expensive graphite electrodes.

Use of inexpensive refractories

Low investment and operating costs.

ELECTRIC ARC FURNACE (EAF) EAF can melt 100 % solid charge comprising appropriate proportion of scrap

and DRI/HBI. This is also an established process in creating an integrated

steel plant of capacity in the range of 1 – 2 Million tons per year. In fact more

than 33% of total steel produced in the world today is through EAF. There

have been continuous developments in this process to increase productivity,

decrease energy consumption and produce cleaner steel. However for the

proposed low capacity mini-integrated steel plant operation of small size EAF

based on DRI (Coal based) will call for requirement of high MVA power

connection thereby dependence on grid support and also high specific

consumption of power, leading to poor viability of steel making.

STEEL MAKING EQUIPMENT PROPOSED

Considering the above facts, Induction Furnace is selected as the equipment

for steel making in the proposed plant of SSSIPL. The production of liquid

steel has been based on the maximum utilization of the DRI produced from its

captive kilns, utilization of plant return scrap and purchased cold pigs. The

average % of DRI in the charge mix is considered at 70 % and the balance will

be made up of plant return scrap and purchased scrap or cold pigs. Based on



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this charge mix the production of liquid steel per year will be about 144,000

tons/year. It is proposed to install Two IF’s in the steel melt shop each of 20

tons capacity. A transformer of required capacity will feed each furnace. A

tap-to-tap time of about 100-120 min. has been considered to be optimum for

the IF’s considering this charge mix composition the tap-to-tap time matching

with the casting time and annual operating days of the steel melt shop of 300

days, the heat weight per cycle considering the two furnaces together works

out to about 40 tons.

The finished products from the plant are bars and rods of construction grades

and sizes rolled in a rolling mill. The feed to a rolling mill producing such

products is MS-Ingots. The liquid steel will be poured into the moulds and

allowed to cool. After that, the moulds will be separated from the metal and

the ingots will be stored, for further processing in the rolling mill.

The installation of induction furnaces will be taken-up in the second phase of

the proposed project.

ROLLING MILL

A bar and rod mill has been considered. The mill is envisaged to produce bars

(including TMT bars) and rods in straight lengths. The proposed bar and rod

mill will be equipped with a walking beam type reheating furnace of capacity

25 tons/hour and online rapid water quenching unit to impart Thermo-

Mechanical Treatment (TMT) to rolled bars.

CAPTIVE POWER PLANT (CPP)

A CPP will be installed to operate the proposed plant with minimum support

from the state power grid for reducing electricity bill. The hot flue gas and

char generated from the DRI kiln and excess coal fines generated during

processing of as received non coking coal, required for the DR process will be

fully utilized for power generation. Additional purchased coal will be used in



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order to achieve the full power generation in the CPP. It is envisaged to obtain

the connection from the state power grid to support the emergency load of the

plant for minimizing damages to critical equipment during shutdown of the

CPP, to meet the plant balance power demands and also the peak power

demands when the rolling mill is in operation. The proposed power plant will

thus be equipped with both waste heat recovery boiler and fluidized bed

combustion boiler for steam generation and associated turbo generator for

generation of power.

The estimated requirement of power for the proposed plant works out to 25

MW. Hence to meet the part electricity demand of the plant a CPP of 8 MW

capacity has been selected. The plant will consists of 4 nos. waste heat

recovery boilers, of which two will be of capacity 10 tons/hr per sponge iron

kiln of 100 TPD and two will be of capacity 7 tons/hr per sponge iron kiln of

75 TPD, one FBC boiler of capacity 30 tons/hr and one turbo generator of

capacity 8 MW.

MAJOR PRODUCTION FACILITIES

The configuration of the production units is chosen as the best possible and

economical combination is summarized below:

Sl. No.

Description Plant Units Remarks

PHASE – I

1 Iron Making 2 x 75 TPD Coal based Sponge Iron Kilns

PHASE – II

2 Iron Making 2 x 100 TPD Coal based Sponge Iron Kilns

3 Steel Making 2 x 20 TPD Induction Furnace

PHASE-III



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4 Rolling Mill 132,000 TPA TMT/MS Rod Mill

5 Captive Power Plant 8 MW (4 MW-WHRB & 4 MW-FBC)

Process Flow sheet

The process flow sheet for the plant is given as Annexure-1.

3.7 Raw material required along with estimated quantity, likely source,

marketing area of final product/s, Mode of transport of raw material and

finished products:

The raw materials required for the proposed sponge iron units of the mini-

integrated steel plant are sized iron ore/ pellets, limestone/ dolomite and

coal. The input materials for the induction furnaces of the proposed mini-

integrated steel plant are the products that will be generated from the sponge

iron units along with limestone/ dolomite, scrap, ferro-alloys and pig iron.

MS Ingots/ billets from the induction furnace are the raw materials to the

rolling mill and the flue gases, char and coal dust from the sponge iron plant

for power production in the captive power plant. The annual requirement of

raw materials, their source and mode of transport etc. have been given below:

Raw Material Annual Quantity

Source Mode of Transport

Iron Ore Lumps/ Pellets

1,58,000 TPA Through E-Auction By trucks

Non-Coking Coal

1,10,500 TPA Indigenous/ Imported By trucks

Limestone/ Dolomite

3,400 TPA Within Karnataka By trucks

Pig Iron 36,000 TPA Local Sources By trucks

Ferro-Alloys 2,500 TPA Local Sources By trucks

The products produced from the proposed mini-integrated steel plant i.e.

TMT/MS rods, will be transported to the dealers/ distribution agencies, by



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way of trucks/ trailers. The potential market will be predominantly Bellary

and surrounding Koppal, Raichur districts and Anantapur district of A.P.

3.8 Resource optimization/recycling and reuse envisaged in the project, if

any, should be briefly outlined:

In the proposed mini-integrated steel plant, ii is envisaged to reuse/ recycle

the following wastes/ by-products, so as to reduce the solid waste generation:

Production Unit Waste(s)/ By-products generated

Proposed point of reuse

Remarks

Sponge Iron Units

Coal Fines Power Plant

Rolling Mills Steel Scrap Induction furnace

3.9 Availability of water its source, Energy/power requirement and source

should be given:

Plant Water Requirements:

Water will be required for cooling of equipment, for dust suppression by

water spray and drinking, firefighting etc. This requirement of water will be

met from bore wells located within the plant site. Also, the management is

proposing to obtain necessary permission from Karnataka Udyog Mitra and

also the State Water Resources Department, for withdrawing 400,000 litres of

water per day, from high level canal of Tungabhadra River. The fresh/ make-

up water requirement for the plant is estimated as below:

Facility Make-up Water m3/Day

Sponge Iron Plant 105

Induction Furnace 144

Rolling Mill 88

Captive Power Plant 48

Drinking & Other Miscellaneous needs

15

TOTAL 400



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Energy/ Power Requirements:

The connected load for the plant is estimated to be around 25 MW with power

factor of 0.8 and the Maximum demand 20 MVA. Capacitors will be installed

to improve the Power factor to 0.9 as per statutory requirement. Power will be

supplied to main receiving station of the plant from Gulbarga Electric Supply

Company, the State agency for power supply. This will be integrated with the

power that is going to be generated from the proposed 8 MW Captive Power

Plant.

Fuel Oil:

Fuel oil is required for startup of the sponge iron kilns; startup of the FBC

boiler and in the reheating furnace in the rolling mills. The total fuel oil

requirement for the above uses is estimated to be about 3400 tonnes/year.

This will be procured from the nearest terminal of any of the major suppliers

e.g. HPCL, IOCL or BPCL. About 20 days storage of fuel will be maintained in

the plant. In addition to fuel oil, about 1,500 litres / year of LDO will be

needed for the transport equipment and other miscellaneous uses within the

plant. Suitable storage tanks with metering devices for these fuels will also be

provided.

3.10 Quantity of wastes to be generated (liquid and solid) and scheme for

their Management/disposal:

The major wastes that could be generated from the plant include the iron ore

fines, coal fines, limestone/ dolomite fines, scrap, fly ash, bottom ash, kiln

accretions, SMS slag etc. Of these, the iron ore fines, limestone/ dolomite fines

will be sold to nearby sinter/ pellet plants on periodical basis. The coal fines

will be used in the power plant and also in the sponge iron plant. The SMS

slag and kiln accretions will be used as a filling material in the low lying

areas. The scrap will be used in the induction furnace.



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3.11 Schematic representations of the feasibility drawing which give

information of EIA purpose

Extract of the location showing in Topo-sheet (1:50000 scale) has been

enclosed along with.



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4. SITE ANALYSIS 4.1 Location of Site

The proposed mini integrated steel plant will be located over an extent of

56.80 acres of Private Land (Patta Land) bearing Survey Nos. 135, 136, 137,

138, 139 & 140 of Haraginadoni Village, Bellary Taluk, Bellary District,

Karnataka. The proposed area forms part of Survey of India Topo-Sheet No.

57A/16.

4.2 Connectivity:

The chosen project site has got a very good connectivity and is adjacent to the

village road that connects Haraginadoni village with the Bellary-Hospet

National Highway (NH-63). Kudatini Railway Station is in close proximity i.e.

at a distance of 11-12 km.

4.3 Land Form, Land use and Land Ownership:

The chosen project site is the agricultural land which belongs the local

agricultural farmers of Haragnadoni village, Bellary taluk & district. The land

will be converted for the development of the project.

4.4 Topography (along with map)

The sanctioned area is of gradually plain area, with a very little/ gentle slope.

No major streams/ nalas pass through the proposed site. Some seasonal

rainwater steams pass nearby the proposed area and due care will be taken to

protect them. The topo-map extract showing the location on 1:50000 scale, is

enclosed.

4.5 Existing land use pattern (agriculture, non-agriculture, forest, water

bodies including area under CRZ), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ. In case of notified industrial area, a copy of the Gazette notification should be given



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The chosen site is not part of any notified area, from environmental

perspective. The surrounding environmental features are as under:

4.6 Existing infrastructures:

The earlier management had installed 1 x 75 TPD sponge iron kiln and

completed the civil foundation works for the second 75 TPD sponge iron kiln.

Also, the necessary site infrastructural facilities like rest shelter, small office,

etc. have been developed at the site. Also, the proposed project site is

connected by an all-weather mud road, which connects Haraginadoni village

with National Highway-63 (between Bellary and Hosapete).

4.7 Soil classification:

The entire area is covered with black cotton soil. There are no rocky patches

and marshy areas within the proposed project area. Hence no special

foundations are required.

Nearest Sensitive Area Name Distance from the Project

Forest Chikkantapur RF: 5.1 Km SW Bellary RF: 6.5 Km S

National Park -- None within 05 km

Wild Life Sanctuary -- None within 05 km

Eco-Sensitive Areas -- None within 05 km

Major Water Bodies Stream to Chatram halla: 300 m E Streams to Elumori halla: 0.6Km NE Streams to Odakana halla: 1.1Km W

streams to Dasara halla: 2.2 Km W Natta halla: 2.6 Km W

Streams to Banakana halla: 2.0 Km N Streams to Urumudra halla: 0.75 km N

Sige halla: 8.2 Km W Tungabhadra High Level Canal: 8.4 Km NE

Allipura Kere: 6.3 Km E

Critically Polluted Areas - None within 05 km

CRZ -- None within 05 km



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4.8 Climatic data from secondary sources:

The climate in Bellay is hot in summers and pretty good in winter. During

summers, the temperature reaches upto 390C and in winters it is usually

around 170C. The average Rainfall of Bellary Taluk is about 438mm and that

of Bellary District is about 588mm. The climate history of Bellary is

summarized in the table below:

Jan

Feb

Mar

Ap

r

May

Jun

e

July

Au

gu

st

Sep

t

Oct

No

v

Dec

Temperature (in oC)

Record High 36 39 42 47 44 43 39 43 42 41 38 39

Average High

31 34 37 39 39 35 33 33 33 32 30 29

Average Low

17 19 23 26 26 25 24 24 23 23 20 19

Record Low 8 14 15 19 19 20 20 17 12 12 10 11

Precipi-tation (mm) 2 2 6 9 33 61 72 48 138 95 39 12

Average Rainy Days 1 0 1 1 4 6 8 9 9 9 4 1

Humidity (%) 54 44 39 40 47 58 62 65 66 70 66 62

4.9 Social Infrastructure available:

The area is part of Bellary District and is at about 16km from the district

headquarters, where all necessary social infrastructural facilities like

educational facilities, hospital/ medical facilities, etc. are available. Also, in

the nearby Kudatini (11km), all required facilities like police station, banks,

schools, colleges, primary health centre, veterinary hospital, etc. are available.



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5. Planning Brief 5.1 Planning Concept (type of industries, facilities, transportation etc.)

Town and country Planning Development Authority classification:

The proposed project site is away from human habitations. Several industries

are existing within 3-5km radial distance and few other industries are being

planned. The proposed site is well suited for the project, due to its location,

proximity to various raw materials, availability of ground water, logistic

support etc.

5.2 Population Projection:

As per 2011 census, there are about 2573 peoples living in the nearby

Haraginadoni village and there are about 487 households.

5.3 Land use planning (breakup along with green belt etc.):

The proposed plant area is Patta Land (private land). It is barren and no much

major vegetation is seen in the area. To establish the proposed 1,32,000 TPA

mini integrated steel plant, total land requirement is estimated as 56.8 acres.

The broad classification of the required land is as under:

The land area distribution of the proposed Plant is given below:

Land Utilization Plan

Description Extent

(in Acres)

Area for Raw Materials Storage 12.0

Area for Buildings (plant & non-plant) 15.0

Roads, Drains & Other Open areas 10.8

Subtotal 37.8

Area for green belt development 19.0

Total Area for the proposed plant 56.8

5.4 Assessment of Infrastructure Demand (Physical & Social)

As the proposed production is marginal, there will not be any additional

requirement of any infrastructural facilities. The existing infrastructural



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facilities like roads, railway network, etc. can accommodate the above

production levels.

5.5 Amenities/ Facilities:

According to the requirement from technological processes and size of plant,

the communication system facilities such as landline phones/ intercoms,

wireless handsets, mobiles etc. will be provided. The Industrial CCTV will

provide information to the main control room from various camera locations.

The control rooms will be air conditioned. The switchgear room and other

electrical rooms will be provided with pressurized ventilation systems.

Suitable instruments will be provided for monitoring the various critical

operational parameters, as per the recommendations of the concerned

technology/ main equipment suppliers. Instruments will be selected

considering good quality, high reliability, latest techniques, and easy

availability. Thermal-resistors, thermocouples and infra-ray thermometers

will be used to measure and monitor temperature. Electromagnetic intelligent

pressure-transmitters and differential pressure transmitters will be used to

measure and monitor pressure. Electromagnetic flow meters of hole plate or

constant flow tube type will be employed to measure and monitor flow rate.

For bin level measuring and monitoring, weighing device will be preferred.

Electronic belt weigh feeders will be used in belt conveyor for all raw

materials. To ensure reliable and accurate data from technological processes, a

workshop will be provided which will be responsible for equipment

application, maintenance and repair and calibration of measuring tools,

automatic instruments and computer system.

Equipment for fire alarm system such as smoke detectors, temperature

sensors and manually operated alarm system will be installed in main control

room, high-voltage & low voltage power distribution rooms, transformer



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rooms, computer rooms and in cable channels. Necessary fire-fighting

equipment like fire extinguishers, sand buckets etc. will be provided at

strategic locations.

The total requirement of industrial quality compressed air will be about 1,800

Nm3/hr. This requirement will be met from a centralized compressor plant

with Three (03) air compressors (including one standby) each of capacity 900

Nm3/hour at a discharge pressure of 7 Kscg. The units will be complete with

after coolers, air receivers, piping and other accessories.

The total requirement of dry quality (instrument) air works out to 360

Nm3/hr. To meet this requirement of dry oil free instrument grade air, three

non-lubricated type air compressors (including one standby) each of capacity

about 200 Nm3/hr, at a discharge pressure of 6 to 7 Kscg will be provided.

The system will be complete with necessary air drying units, air receivers etc.

Repair and maintenance facilities have been centralized in one building to

take care of routine activities. The repair and maintenance shop will be

equipped with facilities for machining, fabrication, assembly, auto servicing,

electrical repairing, hydraulic and pneumatic equipment repairing, mould

repairing etc.

A central store for storage of equipment, spares, consumables, lubricants etc.

will be provided in the plant. The stores will be furnished with handling and

storage facilities. A storage room has also been envisaged inside the stores

building for storage of valuable items.

A well-equipped integrated testing laboratory for carrying out testing at

various stages of production will be provided. The laboratory will also be

utilized for testing of incoming raw materials and testing of products and by-

products at various stages of production.



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6 Proposed Infrastructure 6.1 General

To carry-out the production of construction steel i.e. TMT/ MS rods, various

infrastructural facilities are required for the main activity as well as for

environmental protection & pollution prevention.

6.2 Industrial Area (processing Area):

The total plant area is about 56.8 Acres, of which about 15 acres has been

allocated for housing of various industrial and auxiliary services. About 12

acres of land has been earmarked for storing of raw materials and products/

by-products.

6.3 Residential Area (Non Processing Area):

As the proposed project is of marginal capacity, no residential facilities have

been envisaged within the industrial unit.

6.4 Green Belt:

Out of the total plant area of 56.8 acres, about 19 acres has been reserved for

development of green belt. There is no forest area falling around the proposed

project site. Besides common trees, natural vegetation grows during monsoon

& fades away with the onset of summer. However, to absorb the dust due to

vehicle movement on the haulage road and within the plant area, it is

proposed to take-up plantation work, all along the boundary of the project

site. Also, it is proposed to take-up tree plantation work on either side of the

main approach road.

6.5 Social Infrastructure:

There are few villages & hamlets within 10 kms radius zone. Presently the

people of these villages are engaged in seasonal agricultural activities & thus

are not employed fully. Some persons will be directly working in the plant



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while some shall be on contractual role depending upon the nature and

period of the requirement of the production activities.

6.6 Connectivity (Traffic & Transportation Road/Rail/Metro/Water ways

etc)]:

The proposed mini integrated steel plant will be located over an extent of

56.80 acres of Private Land (Patta Land) bearing Survey Nos. 135, 136, 137,

138, 139 & 140 of Haraginadoni Village, Bellary Taluk, Bellary District,

Karnataka. The proposed area forms part of Survey of India Topo-Sheet No.

57A/16. The chosen project site has got a very good connectivity and is

adjacent to the village road that connects Haraginadoni village with the

Bellary-Hospet National Highway (NH-63). Kudatini Railway Station is in

close proximity i.e. at a distance of 11-12 km.

6.7 Drinking Water Management (Source & Supply of water):

Bottled potable water will be supplied from ISI marked agencies, for drinking

purpose. The estimated water requirement is about 1400-1500 Liters/Day for

Drinking Purpose. Drinking water will be being provided in well-maintained

tank near to the rest shelter/ canteen etc.

6.8 Sewerage system:

Various production units will have their own toilet facilities, along with

associated septic tank-soak pit systems. Hence no centralized sewage

treatment plant has been envisaged as part of the proposed project.

6.9 Industrial Waste Management:

The major wastes that could be generated from the plant include the iron ore

fines, coal fines, limestone/ dolomite fines, scrap, fly ash, bottom ash, kiln

accretions, SMS slag etc. Of these, the iron ore fines, limestone/ dolomite fines

will be sold to nearby sinter/ pellet plants on periodical basis. The coal fines

will be used in the power plant and also in the sponge iron plant. The SMS



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slag and kiln accretions will be used as a filling material in the low lying

areas. The scrap will be used in the induction furnace.

6.10 Solid Waste Management:

As explained in 6.9 above.

6.11 Power Requirement & Supply / Source:

The connected load for the plant is estimated to be around 25 MW with power

factor of 0.8 and the Maximum demand 20 MVA. Capacitors will be installed

to improve the Power factor to 0.9 as per statutory requirement. Power will be

supplied to main receiving station of the plant from Gulbarga Electric Supply

Company, the State agency for power supply. This will be integrated with the

power that is going to be generated from the proposed 8 MW Captive Power

Plant.



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7. Rehabilitation & Resettlement Plan 7.1 Policy to be adopted (Central/ State) in respect of the project affected

persons including home oustees, land oustees and landless labourers (a

brief outline to be given).

In the proposed project site, there are no residential units/ dwellings. Hence

there are no home oustees. The agricultural farmers whose land will be

converted for industrial purpose will be given one employment per house. In

addition to this the literacy rate and better living standards shall increase due

to the enhanced earning capacity of villagers. It is also proposed to develop

green belt which increase aesthetic value and also act as a pollution sink.



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8. PROJECT SCHEDULE & COST ESTIMATE 8.1 General Any developmental activity needs to have adequate resources, be in the form

of man-power or machinery. Careful planning and timely deployment

adequate funds to have the required resources, is of paramount importance

for any successful project implementation. In the following paras, it is

explained about the project schedule of resources and the required capital

expenditure estimates.

8.2 Construction Schedule:

For the proposed mini-integrated steel plant, due to the fluctuating market

conditions, it is envisaged to implement the project in three phases, as

explained in previous chapters. The implementation schedule of the various

phases of the project is as under:

Phase-I 06 Months from Zero Date

Phase-II 24 Months after Phase-I

Phase-III 24 Months after Phase-II

TOTAL 54 Months from Zero Date

Note: Zero Date refers to the date, by which all necessary statutory approvals

are in place and financial closure is complete.

Critical and long delivery equipment have been identified and ordering is

being processed. Intermediate/ critical milestones have been identified and

project monitoring will be carried out vigorously to ensure commissioning of

the plant as planned.

8.2 Capital Cost: The estimated capital cost of the proposed mini-integrated steel plant project

is about Rs. 175 Crores. The estimates are summarized in the following table.



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SUMMARY OF ESTIMATED COST OF THE PROJECT (Rs. in Crores)

Sl. No.

Description Phase I

Phase II

Phase III

Total

1 Land & Site Development 7.00 21.00 - 28.00

2 Civil & Structural Works 2.00 7.00 4.00 13.00

3 Main Plant & Equipment including Miscellaneous Fixed Assets

20.00 42.00 52.00 114.00

4 Contingencies 2.00 4.00 4.00 10.00

5 Pre-Operative Expenses 1.50 1.50 0.80 3.80

5 Margin Money for Working Capital 2.50 2.50 1.20 6.20

Total Project Cost 35.00 78.00 62.00 175.00

Cost of the project includes cost towards land and site development,

buildings, plant and machinery including miscellaneous fixed assets,

preoperative expenses, provision for contingencies and margin money for

working capital.

8.2.1 Land

The total Land requirement for the proposed mini-integrated steel plant

project is 56.8 acres.

8.2.2 Civil and Structural works

The facilities included under this head are factory buildings for main and

auxiliary units, open yards, conveyor galleries and junction houses,

administration office, non-factory buildings and other miscellaneous civil

engineering works. The cost of these facilities have been estimated on the

basis of preliminary layouts and designs of facilities discussed in the previous

chapters, taking into consideration the cost of construction materials

prevailing in the region.

8.2.3 Plant and Machinery

Cost of plant and machinery includes, besides the basic cost, costs towards

spares, taxes and duties, inland transport and transit insurance etc. and also

the cost towards erection & testing of the equipment.



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Necessary provisions for GST have been provided. Inland transportation of

plant and machinery has been provided.

8.2.4 Contingencies

Provision towards contingencies has been made as lumpsum.

8.2.5 Pre-Operative Expenses

Under this head, various pre-project/ pre-operative expenses such as salaries

& wages (during construction), travelling, interest during construction etc.,

until project commissioning period, have been added.

8.2.6 Margin Money for Working Capital

Provision has been made in the estimate towards margin money for working

capital. Margin money is estimated as the 50% of the expenses for one month

production requirement and would be financed in the same debt equity ratio

as fixed capital.

8.2.7 Means of financing

Project cost including margin money for working capital would be financed

in the debt- equity ratio of 2:1. The corresponding amounts, of debt and

equity works-out to be Rs. 117 Crores and Rs. 58 Crores respectively.



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9. RECOMMENDATIONS

9.1 Benefits of the Proposal to the Society:

a. Developmental Activities are important for every citizen, not only for the

products/ services it provides, but for the positive impact it has on the

country’s economy.

b. It provides additional jobs to rural educated youth

c. Improvement in the surrounding infrastructural facilities and nearby

villager’s quality of life will be improved.

d. Programs that are taken-up as part of the Corporate Social Responsibility,

will improve the literacy rate, improvement of village etc.

e. Availability of construction steel, at competitive rates to the nearby cities/

towns, with an assured supply

f. Additional earnings to the Government, in the form of Taxes, Royalty etc.

9.2 Conclusion(s):

This upcoming project will meet the development needs of the surrounding

community without causing any negative influence on the environment. Also,

considering the availability of required raw materials in close vicinity and

growing demand for the construction steel (TMT/ MS rods), especially in

South India, it is highly recommended to go for the proposed Mini-Integrated

Steel Plant, near Haraginadoni, in Bellary Taluk & District of Karnataka State,

India. It can be summarized that the establishment of the proposed project

will have a positive impact on the socio-economics of the area and lead to

overall sustainable development of the region.

- x – x – x –

Documents

M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. · 2019-03-05 · M/S. SRI SUBRAMANYA SPONGE IRON PVT. LTD. Pre-Feasibility Report For Mini-Integrated Steel Plant of 1,32,000 Metric Tons