Techno Economic Feasibility Report of M/s Bravo …environmentclearance.nic.in/writereaddata/Online/TOR/0_0...Techno Economic Feasibility Report of M/s Bravo Sponge Iron Pvt Ltd. At:

Techno Economic Feasibility Report of M/s Bravo Sponge Iron Pvt Ltd.

At: Mahuda P.O- Rukni in Purliya district of West Bengal

Global Experts

1

CHAPTER-1

INTRODUCTION

M/s Bravo Sponge Iron Pvt. Ltd. has existing 1x95 TPD & 1x100 TPD DRI kiln producing

62,400 TPA Sponge Iron for sale village- Mahuda, P.O- Rukni, Puruliya District of West

Bengal

1.0 Importance of the project to the country and region

TMT rod and bar products are normally used in constructional/structural work so

products have demand for development of infrastructure of a country.

Steel is a basic commodity for all industrial activity and its consumption marks industrial

prosperity. The steel industry has tremendous forward and backward linkages in terms

of material flow, income and employment generation.

Steel is a core industry and thus its demand is strongly linked to the overall economic

activity of the nation. Given the inherent long-term potential of the Indian economy and

its cyclical nature, the long-term prospects of the steel industry are fairly comfortable.

The demand and production has been growing at a healthy rate for the last few years

and the forecast for the next decade and half is also very promising.

It has been estimated by certain major investment houses such as Credit Suisse that

India’s steel consumption will continue to grow at 16 % rate annually fuelled by demand

for construction projects worth US $1 trillion. The scope for raising the total consumption

for steel is huge, Per capita consumption of steel at current levels is about 65 kg. As a

comparison per capita steel consumption in China is 430 kg and the world steel

consumption per capita average is 180 kg.

By 2020-21 the demand at 7 % and 8 % GDP growth is estimated to be 123 million tons

and 137.5 million tons respectively. Taking a mean figure of 130 million ton, there is a

need of 65 million ton in 10 years time. This translates into an average growth

requirement of about 10 million tons per year.

Ministry of steel has projected that steel capacity in the country is likely to be 124.06

million tons by 2011-12. Further based on the status of MOUs signed by private

producers with various State Govt., it is expected that India’s steel capacity would be

nearly 293 million tons by 2020.

1.1 Global Steel Scenario:

Steel is a key driver of the world's economy. The industry directly employs more than

two million people worldwide, with a further two million contractors and four million

people in supporting industries. In 1950-India and China had same level of per capita

consumption of steel. But then India remained mostly stagnant whereas China went

about Industrialization and increased its production as well as consumption. However

India improved between 1997 to 2003, but steel then per capita steel has remained very

low in comparison to China.



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In 2007 World steel output reached 1343.5 million metric tons and showed a growth of

7.5% over previous year.

China remained World’s largest crude steel producer in 2007 producing 489.00 million

metric tons and USA 97.20. India occupied 5th position producing 53.10 million metric

tons for the second consecutive year.

In 2013 the world crude steel production reached 1606 million tons and showed a

growth of 3% over 2012. (Source: World Steel Association or WSA)

China remained the world’s largest crude steel producer in 2013 (779 mt) followed by

Japan (111 mt), the USA (87 mt) and India (81 mt) at the 4th position.

WSA has projected Indian steel demand to grow by 3.3% in 2014 as compared to

global steel use growth of 3% and Chinese growth of 3.1%. For 2015, further

recovery is projected for world (3.3%) and India (4.5%) and a slowing down for China

(2.7%).

Per capita finished steel consumption in 2013 is estimated at 225 kg for world and

515 kg for China.

1.2 Domestic Steel Scenario:

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 4th largest producer of

crude steel and the largest producer of sponge iron or DRI in the world.

As per the report of the Working Group on Steel for the 12th Plan, there exist many

factors which carry the potential of raising the per capita steel consumption in the

country, currently at 59.2 kg. These include among others, an estimated

infrastructure investment of nearly a trillion dollars, a projected growth of



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manufacturing from current 8% to 11-12%, increase in urban population to 600

million by 2030 from the current level of 400 million, emergence of the rural market

for steel currently consuming around 10 kg per annum buoyed by projects like Bharat

Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among

others.

At the time of its release, the National Steel Policy 2005 had envisaged steel

production to reach 110 million tons by 2019-20. However, based on the assessment

of the current ongoing projects, both in Greenfield and Brownfield, the Working Group

on Steel for the 12th Plan has projected that the crude steel steel capacity in the

county is likely to be 140 mt by 2016-17 and has the potential to reach 149 mt if all

requirements are adequately met.

The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid

developments in the domestic steel industry (both on the supply and demand sides)

as well as the stable growth of the Indian economy since the release of the Policy in

2005.

The liberalization of industrial policy and other initiatives taken by the Government have

given a definite impetus for entry, participation and growth of the private sector in the

steel industry. While the existing units are being modernized/expanded, a large number

of new steel plants have also come up in different parts of the country based on modern,

cost effective, state of-the-art technologies. In the last few years, the rapid and stable

growth of the demand side has also prompted domestic entrepreneurs to set up fresh

Greenfield projects in different states of the country.

Crude steel capacity was 102 mt in 2013-14 and India, the 4th largest producer of crude

steel in the world, has to its credit, the capability to produce a variety of grades and that

too, of international quality standards. The country is expected to become the 2nd largest

producer of crude steel in the world by 2015-16, provided all requirements for creation

of fresh capacity are adequately met.

Further based on the status of MOUs signed by private producers with various State

Govt., it is expected that India’s steel capacity would be nearly 293 million tons by 2020.

[Source: Ministry of Steel]

Importance of various units

DRI KILN

Sponge iron is the metallic form of iron and Scarp substitute produced from reduction of

iron oxide below the fusion temperature of iron ore (15350C) by utilizing hydrocarbon

gases or carbonaceous fuels as coal. The reduced product having high degree of

metallization exhibits a honeycomb structure, due to which it is named as sponge iron.

As the iron ore is in direct contact with the reducing agent throughout the reduction

process, it is often termed as direct reduced iron (DRI).

IF



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The various types of Induction Furnaces used for Steel making are medium frequency

and high frequency. Mild steel, Stainless Steel and low and high alloy Steel can be made

from these furnaces. Raw materials used are DRI, Pig Iron & Scarp. Charge is heated by

eddy current.Alloying elements are added as per the requirement and the induction

furnaces are provided with matching billet casters.

Rolling Mill:

Steel Billets/blooms from Billet Caster are cut to desired sizes and either fed to hot

rolling mill for processing or transferred to raw material shed stored. Cold Billets are

transferred to roller table and pushed through the Reheating furnaces which are heated

and soaked up to 11500C

The Billets/blooms are then processed through roughing mill, intermediate mills and

finishing mills to get the finished rolled products. Re heating of Billets will be done in

reheating furnace by burning surplus BF gas. Then rolled products are cropped & caught

in required commercial length by hot saws.

Location Map of project site



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Satellite imagery of location-BRAVO Sponge Iron pvt. Limited



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Justification of the project

The company produces steel Billets in its existing unit which is a semi finished product

and unless same are converted to marketable products, the project is less profitable.

Again TMT Bar has high market demand for its utilization in construction work. Hence

expansion of Bravo Sponge Iron Pvt Ltd is justified.

Undoubtedly the development of this industrial project will give rise to the production of

finished products like construction material which is in demand. In the meanwhile

generation of various wastes would also take place from the project and there by

environmental degradation is anticipated. However the use of advanced technology and

proper management, planning and application of meticulous Environment management

plan, shall substantially reduce environmental problems and the project shall becomes

acceptable as it leads to socio-economic development of the region.

Authorization

M/s. BRAVO Sponge Iron Pvt. Limited has entrusted M/S Global Experts, a NABET

accredited “A” Grade Environment consultant Bhubaneswar for preparation of TEFR for

their expansion project.



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In accordance to the scope of work, M/s. Global Experts team visited the project site at-

At-Mahuda, P.O- Rukni, in Puruliya District of West Bengal. During their visit the team

collected information on site and availability of infrastructure facilities like raw materials,

water, power and transportation facilities available for the existing unit and space

available for expansion. The representative of M/s. Bravo Sponge iron Pvt. Limited

accompanied Global Experts team during visit to their site.

ACKNOWLEDGEMENT

GLOBAL EXPERTS, Bhubaneswar expresses its deep gratitude to management of M/s.

Bravo Sponge Iron Pvt. Limited for entrusting the assignment of making report and

providing all documents required for submission of form-1 and TEFR and for the active

interest and cooperation extended by the concerned officials of M/s Bravo Sponge Iron

Pvt Ltd.



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CHAPTER-2

SITE AND INFRASTRUCTURE

2.1 SITE LOCATION

A Plant is set up at a place, where men, machinery and material are brought together to

manufacture the product. The success and failure of an Industry greatly depends on its

location. Therefore location must be based on careful consideration of all the factors that

are essentially needed for successful running of an Industry which may provide

maximum advantage. The most important factors on which the selection of site depends

are 1) Proper Geological region, 2) Appropriate location in the region.

The location of an Industry is determined by following factors.

a) Availability of Raw materials nearby

b) Availability of Industrial vacant land for Industry and its expansion in future.

c) Availability of water needed for the Industry.

d) Availability of power.

e) Nearness to market.

f) Availability of Labor.

g) Good transport facility.

h) Suitable climate and Topography.

Location of the proposed project site fulfils all the above conditions to a large extent.

The site is located at At- Mahuda, P.O-Rukni in the district Puruliya of West Bengal The

plant location and Latitude 230 32' 53.49" N & Longitude 860 32' 49.70" E.

2.2 LAND

The company has already acquired 19.69 acres land and running the existing plant,

vacant space in it will be utilized to accommodate expansion project. The total land use

will be as follows.

LAND USE PATTERN

Sl.N

o.

FACILITIES AREA IN ACRES

1 Plant Facilities 5.50

2 Office Admin Building Canteen 0.25

3 RMH & Storage 1.50

4 Dispatch & Parking Bay 0.75

5 Green belt 6.50

6 Water Storage 0.10

7 Internal Roads 0.60

8 Fuel Storage 0.05

9 Solid Waste Disposal 1.75

10 Vacant Space 2.69

TOTAL 19.69

(As provided by Project Proponent)



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All raw materials are proposed to be received through Rail and in dump trucks and

unloaded in the raw material receiving yard. Sufficient space is earmarked to cater to the

needs of all the units of the plant. Different plant units will be laid out considering the

need of optimized earthwork, rational material flow, economy of operations and the

space requirements for rational development.

The general layout of the proposed plant has been developed keeping in the view the

following factors:

Smooth & uninterrupted flow of materials in accordance with the technological

requirements

Contours & gradient of the site

Optimum lead for transport of materials & for service lines

Predominant wind direction

Logistic approach in location of technological units as well as service facilities

Safety clearances & statutory provisions

The major consideration that has been given for making layout is given below.

The storage facility and raw material & isolating areas have been located near the

main processing area. But care has been taken to see that expansion will not be

hampered in future.

The processing areas are situated at the centre of plant so that all other required

material can be easily available; the area of processing has been such that

movement of worker & flow of material within the processing unit, location of

equipment & their maintenance easy.

The storage facility has been nearer to the processing area so that the production

flows from department to storage easy. A space has been reserved for loading &

unloading of product.

Proper regard has been shown in placement of each of services like the

distribution of water, power refrigeration unit & electricity.

Adequate green belt in 33% of total land within the plant boundary and on the periphery

of the proposed project will be developed to reduce pollution load on environment as it

acts as a sink of dust and noise pollution load.

Connectivity Project area is 0.5 km from SH-12, 0.5 km from SH-8 and 28 km from

NH-60A



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CHAPTER-3

PROCESS DESCRIPTION

PROCESS DESCRIPTION

M/s Bravo Sponge Iron Limited has an existing running unit producing Sponge Iron for

sale for external consumption. The Project Proponent now proposes expansion of this

unit to enhance the capacity of the unit by backward and forward integration. Project

configuration and product mix has been given below.

PROJECT CONFIGURATION

SL

NO

FACILITY CONFIGURATION CAPACITY PRODUCT ENDUSE

Existing

1 DRI kiln 1x100 TPD

1x95 TPD

62,400 TPD Sponge Iron Use in IF

Expansion

2 DRI 1x350 TPD

1x100 TPD

1,44,000 TPD Sponge Iron Use in IF

3 IF 4x15 T 2,09,313 TPA Hot Metal Use in CCM

4 CCM Matching 2,03,033 TPA Billet Use in RM

5 Rolling Mill 600 TPD 1,92,000 TPA TMT Bar/

Rod

Sale

6(a) CPP WHRB 11.5 MW Power Internal Use

6(b) CPP AFBC 6.5 MW Power Internal Use



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FLOW SHEET

Raw material requirement (Existing + Expansion)

Sl.No Material Quantity in TPA Source

1 DRI Grade Iron Ore 2,99,280 Jharkhand/ Odisha

2 Lime stone / Dolomite 820 TPA Local purchase/ M.P

3 Coal(DRI) 2,72,450 TPA Eastern Coal Field

4 Coal(AFBC) 30,000 TPA Eastern Coal Field

5 Pig 22,500 TPA Local purchase

6 Scarp 12,000 Local purchase

Power requirement for the unit inclusive of existing

UNIT CONSUMPTION IN MW

DRI 3.2

IF & CCM

9.0

Rolling mill 2.0

Power plant internal consumption 1.8

Lighting & Auxiliary 2.0

Total power requirement 18.0



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Power requirement 18.00 MW

Captive power generation 18.00 MW

Power to be purchased Nil

WATER REQUIREMENT (Existing+Proposed)

UNIT TOTALMAKE UP m3/Day

DRI 315

IF 120

ROLLING MILL 150

POWER PLANT(Air Cooled) 600

Drinking & Sanitation 30

Green Belt 20

TOTAL 1235

Water requirement for the proposed project comes to about. 1,235 m3/day.



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CHAPTER-4

ENVIRONMENTAL MANAGEMENT PLAN

Industries do pollute the environment. Nevertheless industrial growth has been receiving

tremendous boost all over the world. Over 60-75% of the pollution in the world is related

to industrial production and consumption of fossil fuel and the developed countries have

the major share in it. The present global model of development for prosperity is directly

linked to industrial growth and hence even the developing countries have to initiate

industrial development for their progress, although most of them are lagging far behind

the others.

AIR ENVIRONMENT

Sl.

No Section/Unit Operation

Emission

released waste

generated

Types of

pollution

Pollution

control

measures

1. Raw Material

and scrap

Handling

Stock, crushing,

screening,

conveyor transfer

& charging etc.

Fugitive dust

emission

Air pollution

Noise pollution

Bag filter & 35m

stack

2 DRI kilns Reduction of

pellet/iron ore

with lime and coal

Particulate

matter,CO2, SO2

and NOX

Heat & Air

pollution

WHRB, ESP and

high stack

4 SMS (IF)&

Billet casting

Unit

Melting of pig, hot

metal, scrap &

Ferro Alloys using

O2 & lime. Casting

of refined liquid

steel in moulds of

billet

Water vapor Waste

water containing

iron scales, CO2,

Oil & grease from

scrap. EOF and LF

slag.

Air, thermal ,

Water & soil

pollution

Water scrubber,

settling pond,

Fume extraction

scrubber and

Bag house with

55m stack

5 AFBC Generation of

Steam from coal

and waste heat

from BF and

Coke-oven

TSP, CO2, SO2,

NOx and

generation of fly

and bed ash

Air pollution

Land pollution

Flue gas Lime

scrubber , ESP

& stack



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Water environment

SOLID WASTE AND ITS MANAGEMENT

Solid waste in the form of dust, slag, scrap and ash will be generated from this Steel

plant and shall pollute the environment unless managed properly. Following solid waste

will be generated from the proposed project. Mitigation measure is given below.

Solid waste Quantity in TPA Mitigation measure

Char 41,280 TPA Use in AFBC

IF Slag 33,500 TPA To be used in Land fill

Fly Ash (WHRB) 38,105 Sold to Cement Plant & Brick

Manufacturing

Fly Ash (AFBC) 36,105 TPA Sold to Cement Plant & Brick

Manufacturing

Bottom Ash 5,687 TPA Cement Plant/ Land facilities

Rain water Harvesting

M/s Bravo Sponge Iron Pvt. Ltd will go for rain water harvesting from the project area to

reduce consumption of fresh water make up and specially to meet lean season deficit of

river water.

The average annual rain fall of the project area is about 1445 mm=1.45m

Total project area is19.69 acres=67,460.98m2.

Hence with 50% loss towards evaporation & percolation about 48,638.66m3 of rain water

can be harvested per annum and stored in Rain water harvesting pond. Rain water

harvested can meet the plant requirement of about 40 days.

Sl.

No Section/Unit Operation

Emission

released waste

generated

Types of

pollution

Pollution

control

measures

1 SMS (IF)&

Billet casting

Unit

Melting of pig,

hot metal, scrap

& Ferro Alloys

using O2 & lime.

Casting of refined

liquid steel in

moulds of billet

Water vapor Waste

water containing

iron scales, CO2,

Oil & grease from

scrap. IF and LRF

slag.

Water & soil

pollution

Water

scrubber,

settling pond,

scrubber

2. AFBC Generation of

Steam by

burning coal,

Dolchars for use

in Turbo

generator

generation of fly

ash slurry

Water & soil

pollution by

leaching

Ash settling

pond with

impervious

bottom



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Greenbelt

Green belt has already been developed in about 33% area of the total land and it has

been developed all around the plant boundary and by the side on internal roads. This will

serve as dust sink of the project and will not allow the excess sound level of project to

go out. Local species of trees having good canopy area will be selected for developing

green belt in consultation with forest department.

NOISE POLLUTION MANAGEMENT

The noise pollution management will be taken up in following manner

By selecting low noise generating equipment, which would have below 85 dBA at 1m

distance. This is taken care at the equipment design stage.

By isolating the noise unit from the working personnel’s continuous exposure by

providing acoustic aids for plant personnel.

Use of PPE like ear muff etc.

By administrative & safety measures, providing noise level monitoring, remedial

measures, providing noise safety appliances.

The noise impact on the surrounding environment during the construction phase will

be within acceptable limits. The operation of high noise generating equipment shall

be restricted during the night time.

Various measures proposed to reduce noise pollution include reduction of noise at

source, provision of acoustic lagging for the equipment and suction side silencers,

selection of low noise equipment and isolation of noisy equipment. The plant

personnel in noisy area will be provided with high noise reduction aid such as ear

muffler & also the duration of exposure of the personnel will be limited as per the

norms.

Thick green belt development is planned for the attenuation of noise pollution and to

maintain ambient noise quality within the statutory limit

Carbon Credit Opportunities through CDM activities

Carbon credit is a “generic term to assign a value to a reduction or offset of greenhouse

gas emissions, usually equivalent to one ton of carbon dioxide equivalent (CO2-e).

The Waste heat from DRI Kiln shall be utilized for the generation of of electrical power

through Waste Heat Recovery Boiler (WHRB). This power generation would have

required Tons of coal per hour. 11.5 MW power generations from WHRB can save about

54,761 Tons per annum of coal burning as thus atmospheric emission of pollutants will

be reduced. With a saving of these amounts of coal shall reduce the CO2 emission. These

activities shall make the company to eligible for availing carbon credit facilities.

Cost towards Environment Management

At least 4% of total project cost i.e. about 6.2 crores will be spent towards Environment

pollution control with which ESP, Bag filter, Tailing pond and ash pond etc will be

installed along with other plant machineries.

CHAPTER-5



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ESTIMATATION OF PROJECT COST AND TIME SCHEDULE

PROJECT COST DISTRIBUTION:

Facilities Estimated Project Cost (LAKHS)

Land & Site development 60.00

Civil Buildings 350.00

Structure Buildings 526.00

Plant machinery & Electrical 12,500.00

Erection & installation 500.00

Waste Heat cleaning System 350.00

Miscellaneous Fixed Assets 100.00

Contingencies 240.00

Engineering & Consultancy Charges 108.00

Working Capital 900.00

Total Amount 15,634

Project schedule

It is expected that after getting EC tenders will be floated for equipments and other

activities and establishment and commissioning will be completed in 3yr of time.

Employment opportunities

For the proposed project activities skilled and unskilled manpower will be needed. This

will temporarily increase the employment opportunity. Secondary jobs are also bound to

be generated to provide day-to-day needs and services to the work force. This will also

temporarily increase the demand for essential daily utilities in the local market.

The manpower requirement for the proposed project will generate some permanent jobs

and secondary jobs for the operation and maintenance of plant. This will increase direct /

indirect employment opportunities and ancillary business development to some extent

for the local population. This phase is expected to create a beneficial impact on the local

socio-economic environment.



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About 350 people will get direct employment in various grades. This figure includes

employment in technical, operation, maintenance, finance, commercial, personnel and

general administration.

ESC (Enterprise Social Commitment)

The company will utilize Rs.8 crores i.e.5% of total project cost of Rs 157 crores towards

ESC activities, this fund shall be utilized over a period of 5 years of profitable production.

The allocation of fund will be mainly based on public demand during Public Hearing and

socio-economic study of the project area.

The project has several beneficial impacts which will obviously improve the socio-

economic conditions of the locality.

Those are mainly

Improvement in infrastructure facilities

Improved business opportunity

Direct & indirect Employment opportunity

Revenue generation to central & state government.

Allocation of 5 % of the project cost towards the ESC

When there will be and industry there will be some negative impact whatever small it

may be due to implementation of pollution control system and management.

When the same is superimposed with the project benefits that include employment,

trade & business opportunity, infrastructure development, greenbelt development and

peripheral development, which trickle down to lower strata of population the TIS (Total

Impact Score) comes out to be positive indicating the clear acceptability of the project.

Documents

Techno Economic Feasibility Report of M/s Bravo …environmentclearance.nic.in/writereaddata/Online/TOR/0_0...Techno Economic Feasibility Report of M/s Bravo Sponge Iron Pvt Ltd. At: