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THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA

November 2013 – New Delhi

Realizing 300MT – Challenges Ahead

Ministry of SteelGovernment of India

Ministry of CoalGovernment of India

Ministry of MinesGovernment of India

The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Office:5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021

Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009

Email: [email protected] • Website: www.assocham.org/7steel

November 2013 – New Delhi

A Background Note ..............................................................1

Mukesh Kumar, Design Engineer

U. K. Vishwakarma, Dy. General Manager

S. Torka, Director (Engineering) MECON Ltd., Ranchi

Continuous Casting: Get more from your Caster .................24

Axcend Automation & Software Solutions

Issues In Pelletization Technology .....................................30

Bikash Roy Choudhury

Chief Executive Officer, Adhunik Corporation Limited

7th India Steel Summit“Realizing 300MT – Challenges Ahead”

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Abstract

The Indian steel industry continues to hold the center stage in the economic policy

of the country. In the existing fluid ecosystem comprising economic, social,

environmental and political forces which are mutually inter-dependent and share a

functional relation, forecast and an assessment of the future trends in this critical

constituent of economy has become imperative. In line with this objective an ambitious

target for achieving crude steel capacity of 300 Million Ton by the middle of next

decade has been envisaged in the National Steel Policy-2012(draft).

Present paper covers a realistic diagnosis of various determinants for achieving this

target by 2025-26 and presents a comprehensive picture succinctly covering the “matrix

of contradictions” viz., Raw material security and abundant raw material availability,

environmental commitments and existing resources in ecologically sensitive zones,

HRD/manpower issues and Demographic dividend, land acquisition’s social dimension

and geographic-market dimension and existing outdated technology vis-a-vis new

promising technologies and R&D issues.

The follow up concludes with the proposition of Special Purpose Vehicle (SPV) and

Ultra Mega Steel Projects (UMSPs) as the potential instruments for institutional

metamorphosis of the “matrix of contradictions” into growth opportunities in achieving

the desired ends.

1.0 Background

The geopolitical landscape today is undergoing a renewed and accelerated transition.

This rapidly evolving transition is clearly visible in terms of influential increment in the

bargaining power of the developing economies in the globalised market. This has created

a number of challenges and opportunities. The globalization of standards coupled with

the presence of internal vulnerabilities, magnified by the “existing outdated-and-now-

turned-amorphous institutions”, harvesting systemic deficiencies has become the most

Mukesh Kumar, Design Engineer • U. K. Vishwakarma, Dy. General Manager

S. Torka, Director (Engineering) MECON Ltd., Ranchi

A background note


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critical challenge for the country. To benefit most from the developments across the

planet, there is an urgent need for reshaping the present economic paradigm in the

country, which, however, can be considered to be organically integrated with the global

geopolitical and economic paradigms.

It is largely being felt now that manufacturing has to be the backbone of future growth

strategy of India over the next decade. Accordingly, the new manufacturing policy aims

at increasing manufacturing growth rate to 11-12% by 2016-17 and raising its share

in GDP from current 16% to 25% by 2025. The policy envisages creation of National

Manufacturing Investment Zones (NMIZs) equipped with world class infrastructure

facilities to promote manufacturing activities in the country. Foremost to the process of

achieving economic maturity is the steel sectoral output and growth. As such, some of

the NMIZs are being planned in mineral rich states which may offer excellent potential

location for setting up new steel plants. Draft National Steel Policy 2012 also targets

crude steel capacity of 300 Mt in the country by the middle of the next decade (2025-

26). Recently, a High Level Committee on Manufacturing (HLCM) in its meeting held

on 9th July 2013 which was chaired by Hon’ble Prime Minister endorsed the growth

strategy targeting National Mission of 300 Mt crude steel output by the middle of the

next decade.

To accomplish such an optimistic milestone figure, revisiting the present economic

arrangement and by extension the steel sectoral configurations is essential. This calls

for comprehensive introspection into the challenges concerning the Indian steel industry

and reinforcing our collective efforts towards exploring innovative solutions.

2.0 Global & Indian Steel Scenario

The global steel industry has witnessed significant structural change over the last

decade characterized by emergence of China as world leader. Significant changes

are shifting of production and demand from the advanced to the developing world,

seamless flow of steel across the globe through foreign trade, consolidation at local,

regional and global levels. World crude steel production increased from 905 Mt in

2002 to 1547 Mt in 2012 registering a compounded annual growth rate (CAGR) of

5.51%. Global finished steel consumption increased from 822 Mt in 2002 to 1413 Mt

in 2012 registering 5.57% CAGR. The share of China in global steel production and

consumption increased significantly from 20-23% in 2002 to around 46% in 2012.


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The share of advanced economies like EU-27, NAFTA region, Japan etc. has shrunk

during this period.

About 30-35% of steel products are traded globally as evident from the following

table.

(Mt)

Items 2008 2009 2010 2011 2012

Global production 1246.7 1151.5 1334.3 1432.4 1443.9

Exports 436.6 327.3 388.8 416.6 414

Exports as % of global production 35 28.4 29.1 29.1 28.7

Source : World Steel Association

Indian steel industry growth was fueled by entry of private players in the post-

liberalization era. Share of private sector in crude steel production increased from 37%

in 1992-93 to over 75% to-day. In 2012-13, crude steel production stood at 78.31 Mt

and domestic real steel consumption was 73.33 Mt. India has become net importer of

steel due to higher growth in domestic demand vis-à-vis domestic availability especially

of some special & value-added products like auto grade steel, electrical steel (CRGO/

CRNO), special grade boiler quality plates, API grade large dia pipes, etc.

India has occupied the 4th rank in the world in terms of crude steel production

lagging behind only China, USA and Japan. The country has remained world’s largest

producer of Sponge Iron for many years and expected to emerge as the 2nd largest

producer of steel in the world in near future, next only to China. The present dynamic

position of the country has strengthened its capability to achieve the sharpest steel

output growth trajectory in the years ahead. However, the per capita steel use in

India is still very low at 57 kg against world average of 216 kg as evident in the

following table:

(kg per capita)

EU-27 CIS NAFTAMiddle

EastChina Japan India

Global

Average

278.8 218.2 281.1 221.9 477.4 506 56.9 216.3

Source : World Steel Association (Data for Year 2012)


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3.0 Future Outlook for Global & Indian Steel Industry

Future outlook for global as well as Indian steel industry are summarized as follows :

(Mt)

Sl No Items 2012 2025 CAGR (2012-25), % pa

1Global crude steel

production1547 2115 2.4

2 Crude steel - India

aAs per Draft National Steel

Policy 201278

233*

(300**)8.8

b As per World Steel Dynamics 78 170 6.2

* Finished steel by 2025-26 considering CAGR @8.8% corresponding to GDP growth @8% pa.

** Crude steel capacity target by 2025-26 as per Draft National Steel Policy 2012.

4.0 Regional concentration of steel capacities by 2025-26

As per NSP 2012 (Draft), regional concentration of steel capacities by 2025-26 is likely

to be as follows :

Sl No States Likely steel capacity by 2025-26 (%)

1 Odisha 25

2 Chhattisgarh 13

3 Jharkhand 14

4 Karnataka 9

5 West Bengal 7

6Others (Andhra Pradesh,

Maharashtra, Goa etc)32

Total 100

5.0 Process route mix of steel capacities by 2025-26

The process route-mix of steel capacities by 2025-26 is expected to be dominated by BOF

route with significant share of 67%, followed by EAF route (28%) and IF route (5%).


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6.0 Requirement of Inputs & Infrastructure

In order to achieve 300 Mt crude steel output in the country by 2025-26, the annual

requirement of inputs and infrastructure requirement have been estimated as

follows:

Sl No Items Unit Quantity

A Annual requirement of inputs

1 Iron ore Mt 490

2 Coking coal Mt 170

3 Non-coking coal for DRI / PCI Mt 140

4 Steel scrap (for IF based units) Mt 20

5 Limestone & dolomite Mt 110

BInfrastructure requirement for additional steel

capacity by 2025-26

1 Land Acres 1,26,000

2 Water Million m3 1,100

3 Power MW 22,000

4 Steel related railway traffic Mtpa 800

5 Steel related port traffic Mtpa 300

NB : Land requirement @500-600 acres per Mt. Power requirement @100 MW per Mt. Water requirement

@5 m3/tcs although NSP-2012 (draft) aims @2 m3/tcs by 2025-26.

7.0 Key Issues & Suggested Strategies

Key issues alongwith suggested strategies for accomplishing the National Mission of

achieving 300 Mt steel output by the middle of the next decade are elaborated in

subsequent sections.

7.1 Marketability of Steel Products – Indian Perspective

The potential drivers of demand for the steel products in India are transport (16%),

construction (50%) and Capital & Consumer goods (34%). The following factors are


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expected to help increasing intensity of steel use in the country :

a) Realization of massive investment in infrastructure (1 trillion dollar) as envisaged

in 12th Five Year Plan especially in dedicated freight corridor, metro/mono rail,

bridges, flyovers, ports etc.

b) Anticipated growth in power and oil & gas sectors.

c) Implementation of national manufacturing policy aimed at increasing manufacturing

growth rate to 11-12% by 2016-17 and raising its share in GDP from current

16% to 25% by 2025. The policy envisages creation of National Manufacturing

Investment Zones (NMIZs) equipped with world class infrastructure to promote

manufacturing activities in the country.

d) Trend towards higher urbanization rates, rising middle class population with

enhanced purchasing power for automobiles, white goods & other consumer non-

durables.

e) Thrust on tapping latent demand potential in rural market through investment

in housing & social infrastructure, product customization by leveraging “frugal

engineering concept”, strengthening product distribution chain / retail outlet

network, promotion of entrepreneurial skill among rural populace as well as

raising income / purchasing power of rural populace through pick up in agricultural

growth / higher procurement prices for agricultural products, financial inclusion

and efficient & effective implementation of various social welfare schemes like

MGNREGS.

f) Rising consumption in the retail sector.

g) Policy thrust for the country to emerge as Net Exporter through developing export

market targeting Latin America, Africa and ASEAN region.

7.2 Raw material security

The indigenous resource position of iron ore (as on 1.4.2010) at 55% Fe cut-off is

furnished as follows :

(Mt)

Sl No Item Reserves Remaining resources Total Grand Total

1 Haematite 8094 9788 17882 28526

2 Magnetite 22 10622 10644

Source : IBM, 2010


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If steel output in the country ramps up to reach 300 Mt by 2025-26, the Hematite reserves

can last only for 6-7 years beyond 2025. The threshold / cut-off grade for haematite

ore has been lowered from 55% to 45%. The fines generation is now increasing in

Indian mines. The country witnessed large scale export (54% in 2009-10) of iron ore in

the past causing environmental degradation and illegal mining. In view to conserve the

ore for future value-addition within country, exports have been discouraged through

imposition of 30% export duty and differential rail freight mechanism.

There is need for resource augmentation through intensive & deeper exploration

(>60 m depth & Fe cut-off<50%) and resource conservation through beneficiation /

agglomeration / pelletization of increasing quantum of low grade fines & slimes for use

in iron making. Indian iron ore has high alumina content and techno-economically viable

beneficiation technology would need to be developed. To meet the increasing demand

for iron ore, systematic developmental efforts need to be undertaken including creation

of additional mining capacity, encouraging investment, issuance of environmental &

forest clearances within specified time frame, grant and renew leases against credible

mining plans and grant of fresh leases only against new norms that are in place for

assessment of technical and financial capabilities of applicants. Preference should be

given to value adders in allocation of mineral concessions. In wake of fast depleting

haematite ore, magnetite ore resources locked in western ghat of Karnataka has to

be tapped through techno-economic viable underground mining technique (requires

huge investment) without disturbing the ecology in the region. Further there is need

for phased reduction in export of iron ore to moderate levels, strengthening of mine

related infrastructure as well as strategic initiative for acquisition of overseas iron ore

deposits.

Coking coal reserve in India is 33.68 Bt (1.4.2011) including 17.93 Bt under proved

category, prime coking coal being only 4.6 Bt. Indian coking coal has high ash and

80% of coking coal requirement of Indian steel sector is met through import which

will further increase due to a number of new projects being planned based on BF-BOF

route. Price volatility in international market has sharply eroded competitive position

of Indian steel makers. Capability developing to beneficiate low grade coking coal

with improved yield should be aimed through installing new washeries with state-

of-the-art technology / expertise available internationally. There should be intensive

exploration for prime coking coal (beyond 300 m) as well as exploitation of deep

seated coking coal reserves through suitable underground technology. There should


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be phased deregulation of coal sector and demerger of CIL’s coking coal mines to be

offered to steel producers on competitive terms. Govt. would need to ensure speedy

implementation of Jharia Action Plan for exploitation of prime coking coal. Despite

growing domestic market and rising import dependence, production from captive coal

mines has remained below potential due to delays in regulatory clearances and land

acquisition. A well defined process with prescribed time frame for statutory clearance

needs to be developed. Strategic acquisition of coal assets overseas is being successfully

done by some private steel companies. Ministry of Steel has set up a Special Purpose

Vehicle, International Coal Venture Ltd (ICVL) with participation of CIL, SAIL, NTPC,

RINL and NMDC for this purpose. PSUs are also independently scouting for coal assets

abroad. Bilateral negotiations with respective Governments may also strengthen the

success potential of Indian Companies in this direction. Non-coking coal reserve in

India is 258 Bt (1.4.2011) – 100 Bt is of proved category. These also have high ash and

being imported in limited way by sponge iron producers. There is need for long term

fuel supply agreement between coal companies and steel / sponge iron producers.

The indigenous resource position of limestone & dolomite is as follows :

(Mt)

Sl No Items

Limestone Dolomite

ReservesRemaining

resourcesReserves

Remaining

resources

1 BF grade 930 12270 317 1672

2 SMS grade 219 1231 271 1700

Source : IBM, 2010

SMS grade reserves are confined in Rajasthan involving high incidence of transportation

cost. Domestic reserves of SMS grade fluxes are limited and steel plants are also

importing SMS grade limestone from Middle East region. Government would need to

strictly ensure supply of SMS grade limestone to steel units without any diversion to

cement units. Strategic acquisition of SMS grade limestone deposits in Middle East may

also be explored by Indian steel companies.

7.3 Technology, Environment Management and R&D

The Indian steel making technology is broadly categorized into three groups BOF (45%

share), EAF (24% share) and EIF (31% share). Indian steel industry is characterized


9

by a mix of old and new technologies together with integrated and stand-alone mills.

But the overall techno-economic performance of Indian steel industry is below global

benchmarks mainly due to poor quality of raw materials/inputs, prevalence of obsolete

technology and lack of R&D to overcome the technological gaps. Indian steel industry

would need to adopt modern commercially available relevant technologies to achieve

globally comparable business and product performance, partner with world leaders to

acquire state-of-the-art technologies and process know-how, promote new technology

in association with renowned equipment supplier / technology provider and develop

new technologies / process / product through own research.

The draft National Steel Policy has outlined growth strategy for the Indian steel industry

through sustainable development and set stringent strategic goals for the Indian steel

sector as outlined below :

Parameters Unit ExistingStrategic goal

by 2025-26

Specific energy consumption G cal 6.3 4.5

CO2 emissions t/tcs 2.5 2.0

Material efficiency % 93.5 98.0

Sp.make-up water consumption

(works excl. power plant)m3/tcs 3.3 2.0

Utilization of BOF slag % 30 100

Share of continuously cast

production% 70 95

Blast furnace productivity t/m3/day 1.9 2.8

BOF productivityNo of heat/

convertor/day7800 12000

R&D expenditure as % of

turnover% 0.2 1.5

Indian steel industy would need to adopt measures like beneficiation of iron ore & coal

and increasing use of agglomerated burden in blast furnaces. Technological innovations

like stamp charging & partial briquetting of coal charge (PBCC), tall ovens/batteries,

leak proof doors, coke dry quenching (CDQ) etc may be considered for extensive

adoption for enhancing productivity, improving quality and reducing pollution. SCOPE

21, a revolutionary coke production process, which is being developed by Nippon Steel,


10

is expected to reduce energy consumption significantly and also boost production

efficiency.

In blast furnace, improvement in performance efficiency / consistency in hot metal

quality / reduction in coke rate can be achieved through increasing the share of

prepared burden feed (sinter, pellets, DRI & other metallics), incorporating technologies

for injecting pulverized coal, top gas recovery turbine, use of waste heat stove gas for

preheating of gas, high efficiency stoves, introducing copper staves, silicon carbide or

other improved refractory system in high heat load areas, revamping/conveyorisation

of stock house and screening efficiency of ore, sinter & coke, strengthening stoves

capacity, increasing blast volume & flow rate, increasing oxygen enrichment of blast &

hot blast temperatures, application of close circuit water for better cooling efficiency,

increasing the inner useful volume by the use superior quality refractories, augmentation

of cast house facilities including powerful mud gun & drilling machines and installation

of latest instrumentation, automation & control systems for improved process control.

Large size Blast furnaces with the state- of –the- art facilities offer better productivity,

consumption norms and hot metal quality. With installation of such furnaces in future,

the need for agglomerated burden is likely to increase. Improvement in burden quality

will facilitate higher PCI injection rates and thereby reduction in metallurgical coke

requirement and overall fuel rate.

Non-coking coal gasification by the well established coal gasification (Lurgi Technology)

and use of synthesis gas thus generated (in lieu of natural gas) as reductant in vertical

shaft furnace to produce gas based DRI would need to be encouraged to mitigate the

problem of non availability of natural gas.

Indian steel industry has to achieve sustainable development through adoption of

green / energy efficient technologies. FINEX, ITmK3, FASTMELT, HISMELT etc are some

of the promising emerging green / smelting reduction technologies based on use of

iron ore fines / non-coking coal. These technologies have eliminated coke making

and agglomeration facilities. Their adoption will help in reducing dependence on iron

ore lumps/imported coking coal and will also help in reducing harmful emissions. The

relevance of these technologies has to be carefully assessed for compatibility in the

Indian context.

Over the years, energy intensity in integrated steel plants has been brought down

substantially by improvements in raw material quality, processes and operational


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practices to current level of 6.0-6.7 Gcal/tcs. This is still higher than the 4.5-5.5 Gcal/

tcs levels achieved by steel plants in other countries. The specific emissions of air

pollutants like dust, SOx NOx in some Indian steel plants are still above 1.0 kg per

ton of steel as compared to less than 0.5 kg per ton of steel in developed countries.

A substantial reduction in specific air emissions may be possible with introduction of

larger capacity units like sinter plants, blast furnaces, taller coke ovens, increased size

of steel converter etc.

Over the years, fresh water consumption for steel production has been brought down

from 12-15m3/tcs to less than 5 m3/tcs, with some integrated steel plants consuming

less than 3.0 m3/tcs. Water being a scarce resource, Ministry of Environment & Forests

(MoEF) has emphasized on zero water discharge from industries, which may require

innovative solutions for effectively recycling treated wastewater.

Due to high impurity levels in the raw material, currently volume of solid wastes generated

in Indian steel plants is relatively high at 600-800 kg per ton of steel as compared to

400-500 kg in developed countries. The steel industry has been successfully converting

these wastes into useful byproducts for recycling or else for use as a raw material in

other industries. For an effective environmental management in the steel sector, the

thrust areas identified for implementation in 12th Plan include 100% usage of BOF

& EAF slag by introduction of a product standard, reduction of fresh water usage to

less than 4.0 m3/tcs in integrated steel plants and work towards achieving zero water

discharge, 100% recycling of wastes to achieve zero wastes generation, reduction of

process dust emissions to less than 1.0 kg/tcs, staged combustion in burners to reduce

NOx emissions, online monitoring of stacks in all plants and introduction of EMS (ISO-

14001) in all sectors of steel making.

In the past few decades, Climate change has assumed high place on the global

development discourse. The global commitments and high vulnerability of steel

sector to the climate change has brought steel sector in the global spotlight. The

steel sectoral CO2 emissions are projected as 450 million tonnes by 2020 (12th FY

Plan working group). It is felt that even after implementing energy conservation &

efficiency improvement projects, the anticipated CO2 reduction from the steel sector

will still be higher. Thus there is a need to explore technologies like carbon capture

& sequestration (CCS) and new routes to carbon free steel making technologies by

leveraging soft financing advanced by the developed economies. Further installation


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of new technologies with higher capacities would contribute towards higher level of

energy & environmental efficiency. There is need for “Carrying capacity” approach in

the land use for the steel plant, since over-burdening of the land use through steel

plant clusters causes serious environmental damage. Voluntary initiatives like corporate

responsibility for environmental protection would also contribute immensely in this

direction. There is also need to promote specialized training for environmental capacity

building, renewable energy generation and altering the incentive structure in favour of

zero waste generation and recycling of process wastes like dust, slag etc.

There is a need to develop good design, engineering and manufacturing facilities in

the country to mitigate long term dependence on imports of state-of-the-art facilities/

equipment at phenomenal cost. This can be achieved through development of

manufacturing centers by pooling of resources by steel companies through MOU with

Government providing necessary incentives/subsidy. Steel companies may associate

with reputed equipment suppliers to promote new process development. Leading

equipment manufacturers may also be encouraged to put their manufacturing base in

India.

Investment in R & D in Indian steel industry has been very low in the range of 0.15-

0.25% of the sales turnover. Until recently, the R & D activity in India has been carried

out by National Research Laboratories / Academic Institutions and to a limited extent by

the industry itself. The international developments in research have benefited the large

steel producers and its benefits yet to be reaped by small steel producers. There is need

to leverage Government grant for R & D through PPP mode to enhance R&D investment

from the existing 0.15-0.25% of sales turnover to 1% by 2015-16 and 1.5-2% by 2025.

R & D thrust in the Indian steel sector has to be in areas like environment management,

energy efficiency, GHG reduction, beneficiation / agglomeration / SR technologies for

optimum utilization of indigenous natural resources, product development for defence,

space research & nuclear energy, optimum land use in Greenfield projects etc. There

is also need to develop indigenous capability for import substitution for special grade

/ value-added products like auto grade steel (dual phase, TRIP, AHSS, Ultra Fine Grain

Steel, Nano Steel), electrical steel (CRGO/high grade CRNO), special grade boiler quality

plates, API grade large dia pipes and special grades of eco-friendly pre-fabricated

steel structures for high rise buildings / urban infrastructure etc. To a large extent the

above issues can be addressed, if the few existing Research centres are developed

into “Centres of Excellence” by joint funding between Industry and Government under


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Private – Public partnership. Steel Technology Centres would need to be created

under PPP model in industrial sites for promoting market driven translational research

customized for steel industry.

7.4 Infrastructure

Land

Land footprint by steel companies has undergone a sea change over last 3-4 decades

in India improving from around 4000 ha/Mt of crude steel capacity in 70s/80s to

present range of 900-1500 ha/Mt. Further, it is expected that with improved land use

plan, the footprint would reduce to the level of 200 ha/Mt by 2025. For Greenfield

projects 40,000 hectares of land is required for 300 Mt crude steel target. Additionally

10,000 ha would be required to store tailings generated at the mines (estimated as

400 Mt). This high quantum of land required for the steel projects can be a social

challenge and should be viewed in a broad socio-economic paradigm. Involvement of

multiple agencies, leakages during the R&R process/stage, delays in compensations

which sometimes remain low, parochial political ambitions of local leaders and so on

and so forth can be identified as potential reasons for delay in land acquisition and

settlement of R & R issues.

Suggested measures include online single e-window for transparent transactions

involving multiple government agencies, consolidation of land acquisition Act with

the R&R act, widening the ambit of project affected families to include those whose

livelihoods are lost due to land acquisition, land auction and devising suitable

institutional mechanisms to resolve conflicts among various stakeholders. The

recently passed the right to fair compensation and transparency in Land acquisition,

resettlement and rehabilitation Act , 2013 is a big milestone in this direction. Above

all, land acquisition has all the social, political and environmental dimensions and

requires initiatives and collaborative sensitivities of Government and industry.

Further, industry would need to devise optimum land use plan such as compact

layout, optimization of material flow, covered raw material storage and selection of

large size units. Moreover, steel clusters may be promoted for small / medium units

with common infrastructure on consortium approach for optimal land use / economies

of scale. Government would need to provide fiscal / administrative help for shared

infrastructure in the steel cluster.


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Water

As per UN estimate, total amount of water on earth is 1400 million BCM of which only

2.7% is fresh water mostly trapped in frozen poles (75.2%) / available as ground water

(22.6%). Rest are available in lakes, rivers, atmosphere, moisture, soil & vegetation.

Most of the water is not available for use and characterized by highly uneven spatial

distribution. India has over 17% of world population but only 4% of world’s renewable

water resources and 2.6% of world’s land area. India receives an average annual

precipitation of 4000 BCM. After natural evaporation-transpiration, only 1869 BCM is

average annual natural flow through rivers & aquifers. Of this, only about 1123 BCM

is utilizable, if large inter-basin transfers are not considered. Total catchment area for

medium river basins of India is 2,48,505 sq. km. Total annual replenishable ground

water reserves of India is placed at 431 BCM. After natural discharge of 35 BCM, net

ground water availability in the country is 396 BCM. Annual ground water draft is

reported as 243 BCM of which only 22 BCM is for domestic & industrial use. National

Water Board has projected the water demand for domestic & industrial uses upto 2025

to be 29 BCM.

With technological advancement and improvement in the operating regime, Indian steel

industry has been able to achieve significant reduction in specific water consumption

over past many years as evident from the following table :

(m3/tcs)

Sl No Items 70s/80s Present2025 (draft

NSP)

1Specific water consumption

(overall)12-15 6-8 -

2Specific water consumption

(without power plant)6-7 3.5-5 2

Steel sector share in total water consumption in the country is around 5%. There are

large surface water sources / river basins in iron ore rich states of Odisha, Jharkhand

and Chhattisgarh. These states account for 10% ground water reserves in the country.

In order to resolve water related conflict, there is need for water sharing agreement and

monitoring water quality involving local community, steel units and State Government.

There should be water footprint mapping and rain water harvesting in steel units /


15

mining areas. There should be penalty / reward system to bridge the gap between

global best practice and Indian standard practice. Steel cluster & consortium approach

can also help in reducing overall water consumption due to economy of scale. Steel

units would also need to increasingly adopt water efficient processes & practices such

as dry coke quenching, dry gas cleaning plants for BF/BOF, zero water discharge (RO

process), recovery & recirculation in beneficiation circuit etc. National Water Board

has recommended differential water pricing based on economic principles subjected to

allocation.

Power

Total installed power generation capacity in the country is 2,25,793 MW as on 30.6.2013.

Generation in 2012-13 was 911.6 BU with overall PLF reported to be 70%. The deficit

in availability vis-à-vis demand was around 8.7% in 2012-13, the corresponding peak

deficit being 9%. As per working group on power for 12th FYP, the energy requirement

by the terminal years of 12th Plan (2016-17) and 13th Plan (2021-22) would be

1403 BU and 1993 BU respectively, corresponding peak load being 197686 MW and

289667 MW respectively. The working group on power envisaged capacity addition

requirement of 75,785 MW during 12th FYP besides grid interactive renewable capacity

addition of 18,500 MW and 1200 MW import from Bhutan. However, to bridge the gap

between peak demand & peak deficit and accommodate faster retirement of old energy

efficient plants the target capacity addition for 12th FYP is fixed at 88,537 MW besides

capacity addition of 30,000 MW through MNRE. Further, capacity addition requirement

during 13th Plan (2017-18 to 2021-22) is projected to be 93,400 MW in addition to

MNRE projected grid interactive renewable capacity addition of 30,500 MW. If these

national goals are realized in time, there should not be any constraint related to power

generation.

The steel intensive states of Odisha, Jharkhand, Chhattisgarh and Karnataka are

presently surplus in power generation. However, peak power / energy deficits are

faced due to obligations of these states to export power. Large integrated steel plants

generally envisage captive power plants to meet their needs. However, small and

medium steel units have high dependence on grid power. Government would need

to ensure assured power supply to these units through facilitating strengthening

of power generation, transmission & distribution network / national grid. Moreover,

with increasing adoption of state-of-the-art energy efficient processes like coke dry


16

quenching, top recovery turbine in blast furnace, continuous casting and cutting edge

rolling technologies, the existing / future steel units can achieve substantial reduction

in power / energy consumption.

Railways & Roads

Railways have dominant share in total freight traffic generated by large steel plants

as compared to roads whereas the reverse is true in case of small & medium units as

evident from the following table :

(%)

Sl No ItemsRaw materials Finished products

Rail Road Rail Road

1 Mega steel projects / units 90 10 70 30

2Small & medium steel

projects / units25 75 25 75

3 Iron ore export 60 40 - -

Source : Railway 2025 Report

The inter-modal mix of freight in 2012 and projection by 2025 are furnished in the

table below :

Year

Total steel

related freight

turnover (Mt)

Freight Distribution

Rail RoadSlurry

Pipeline

2012 288 66% (190 Mt) 28% (81 Mt) 6% (17 Mt)

2025 1200 66% ((~800 Mt) 25% (300 Mt) 9% (~100 Mt)

NB : Import & export through ports considered based on port connectivity / transportation by rail & road.

It is projected that freight handling capacity of railways pertaining to steel sector

related freight by 2025 would be only 660 Mt vis-à-vis projected requirement of 800

Mt (corresponding to 300 Mt crude steel output), thereby creating a gap of 140 Mt

by 2025 which would need to be bridged. Railway Vision 2025 envisages upgradation

of axle load of tracks and development of wagons with higher payload to tare weight

ratio. Railway Vision 2020 has also laid stress on improving rail connectivity with

ports and incentivizing major customers / steel plants to invest in improvement in

efficient terminal handling system and share the efficiency gain accruing from reduced


17

wagon turnaround time. Other strategic measures include timely execution of railway

projects in iron ore mining areas, augmentation of railway infrastructure in Eastern &

Southern States where large steel capacities are being planned, developing dedicated

rail link between mines and plants through PPP mode and prioritize funding of projects

connected with Dedicated Freight Corridors. There is need for creation of mineral

development fund for development of infrastructure in mining belt. The Railways in

their Vision 2020 have envisaged mobilization of financial resources through internal

surpluses, borrowings, PPP route as well as creation of Accelerated Rail Development

Fund (ARDF).

Road infrastructure is vital for handling steel related freight for medium to small steel

units and distribution of steel products to far flung remote / rural areas. The three iron

ore rich states of Jharkhand, Odisha & Chhattisgarh have low density of poor quality road

network resulting in delays / material loss during transit and resultant high transaction

costs. Further there is inadequate network of state & district roads connecting mines

& plants to NHs in mining areas in Eastern Sector. Suggested strategies for road

infrastructure include strengthening road network in remote / distant rural areas for

distribution of finished steel and improving road connectivity with port & mines through

PPP mode of funding.

Slurry transportation

Slurry transportation of iron ore is a cost-effective and environmental friendly option

which can supplement rail / road infrastructure and help in reducing congestion in

transportation network in mining areas. Government may consider creation of nation-

wide slurry transportation highways and encourage investment through extending

fiscal incentives which are currently available to infrastructure sector.

Coastal transportation

Government may consider creating necessary infrastructure for coastal transportation

which may be relevant to plants located in coastal areas/adjoining hinterland for

transportation of imported coal and export of finished steel.

Port

There are 13 major ports and 176 non-major ports in India along its vast 7517 km long

coastal line. The existing & projected port traffic / capacities are furnished as follows :


18

(Mt)

ItemsPort Traffic Port Capacity

2012-13 2019-20 (P) 2012-13 2019-20 (P)

Major ports 546 1215 745 1460

Non-major

ports388 1280 455 1670

Total 934 2495 1200 3130

Source : Ministry / Maritime Agenda (2010-2020).

Port related traffic pertaining to 300 Mt steel output by 2025-26 is estimated to be

around 300 Mt. The Maritime Agenda (2010-2020) has set achieving port capacity

target of 3130 Mt by 2019-20, of which more than 50% to be created in non-major

ports. The objective is to bring Indian ports at par with best international ports in terms

of efficiency and associated transaction costs. Maritime Agenda also aims at developing

two new major ports (one each on east & west coast), full mechanization of cargo

handling / movement, deepening of port channels and identification / implementation

of rail/road/inland waterway connectivity to ports. Suggested strategies concerning port

infrastructure entail construction of deep draft berths to accommodate large vessels /

achieve economy of scale / enhance handling capacity at major port and achieve faster

evacuation through seamless port connectivity with multi-modal land transportation

(railways & roads) under PPP route collaborating amongst investors, State Govt. &

transport related service providing agencies.

7.5 Trade Policy Issues

The fading contours of global market necessitate the inclusion of trade related

concerns. Fixation of import tariff levels should be based on the considerations of

global oversupply/slow down in major steel nations, potential erosion in domestic cost

competitiveness due to price dynamics of raw material & energy, cost of capital &

infrastructure constraint. Level playing field should be ensured with trading partners

with mature steel industry for bilateral / regional trade agreements. Free/preferential

trade agreements (FTAs/PTAs) should factor global competitiveness / possible trade

distortion. The momentum of future growth would lie with Developing and Emerging

Economies which are expected to register higher growth rates. Aggressive export


19

strategy should be adopted to target markets in Africa, Latin America & Asia including

ASEAN member nations. Product diversification as per the needs of importing countries

and production of quality steel compatible with standards followed internationally

has to become an integral part of export strategy. Working out conducive trading

arrangements with trading partners holds a crucial place in the entire strategy of

export promotion. Export thrust should mitigate adverse impact on net forex earnings

by steel industry due to rising import of coking coal vis-à-vis gradual reduction in iron

ore export.

7.6 Human resource

There is dearth of quality manpower in manufacturing sector where salaries are lower

than the financial and other service sectors (IT/Management consultancy) and working

conditions are relatively onerous. Post liberalization, the steel industry recorded

voluminous growth in output in the backdrop of significant gains in labour productivity.

Improvements in Automation and IT infrastructure have resulted in qualitative shift in

workforce. Such developments have resulted in enhanced requirement of management

graduates, metallurgists, finance professionals etc. There is also dearth of faculty in

the field of metals/metallurgy as well as lack of appropriate facilities to carry out any

relevant research in Iron & Steel since the focus is now shifted to materials. There is

likely to be a shortage of core metallurgists which stems from the greater academia

focuses on materials than metals. This necessitates academic restructuring suited to

industrial needs and setting up of ‘Steel technology centers’ around the steel industry

corridors for faculty development. “Centre of Excellence” would need to be set up

under PPP mode for creation of R & D infrastructure, product development and human

resource development aimed at creating talent pool for research in the steel industry.

There is need to realign education system and corporate policies to attract, facilitate

and generate domain experts in the steel industry in India. The integration through

positive coordination and cooperation among academia, industry and Government is

crucial to fill the gulf created by growing industrial differentiation.

7.7 Project implementation

Substantial delay in green field steel capacity creation in the country is witnessed

in recent times. The delays are mainly caused by delay in clearances, delay in land

acquisition & resolving R & R conflicts as well as delay in linkages for minerals. There


20

is need for single e-window for submission of application and tracking of status

for grant of resources/clearances. Inter-ministerial Group (IMG) would need to be

empowered for conflict resolution / cut delay in project implementation. The New land

Acquisition Act, R&R policy & new provisions of proposed MMDR Act should also address

policy/procedural issues. There should be informed decision on site selection among

producer, project evaluator, local administration & service providers-railways, NHAI,

port authorities, MoEF etc for faster implementation of projects. The recent formation

of Cabinet Committee on Investment would help in speeding up project clearance /

execution.

7.8 Financial resources

SAIL Chairman has recently underscored that about 200 billion USD of financial

resources would be required for achieving the 300 Mt crude steel capacity by 2025-

26. Additionally investment would also be required in development of mines and other

related infrastructure facilities. Availability of such large quantum of investible funds at

reasonable costs will be a challenging task. FDI in steel sector has been lagging behind

despite massive investment intentions by major global players. In order to ensure

sufficient availability of financial resources for the growth of Indian steel industry, it

is imperative to review steel related sectoral caps of the banking sector. Government

may also consider easing of norms connected with external borrowings (ECBs). Due to

various reasons, implementation of steel projects generally takes a lot of time. Special

purpose long term financing facility viz. Steel Finance Corporation akin to Power Finance

Corporation (PFC) may be created to finance huge investment in new steel plants.

Initial corpus may be created by the Government with subsequent resource through

issuance of deep discount bonds. Development and adoption of new technologies

at a commercial scale is a high risk area. There is need to attract Risk / Venture

Capital in the steel sector for development of new & emerging technologies. Apart from

concessions such as duty free imports and Tax Holidays; innovative financing methods,

contribution to the equity by the Government and Technology Development Bonds

on the lines of infrastructure bonds are some of the other mechanisms which may be

explored for development/adoption of new technologies. Similarly, there is also a need

to attract Risk Capital in the area of exploration and prospecting of minerals. PPP mode

would need to be adopted to facilitate private investment in infrastructure. Long term

financing need of infrastructure projects may be funded through Infrastructure Debt

Fund (IDF).


21

7.9 Government as Facilitator

The role of the Government in the new economic order has changed from a regulator to

that of facilitator and coordinator. Based on the suggestions of National Manufacturing

Competitiveness Council (NMCC) to reduce the time required for development of

Greenfield sites for setting up steel projects, Ministry of Steel is contemplating to adopt

Special Purpose Vehicle (SPV) model for awarding projects to investors in the steel

sector. The Special purpose vehicle as a single entity to address multiple issues in the

steel sector will facilitate objective consolidation thereby institutional diagnoses of the

emerging challenges. In the short run, pro-active facilitation of projects in the pipeline

would be taken up on priority jointly by the Steel Ministry and the new investment

facilitation mechanism in the Cabinet Secretariat. SAIL would leverage its existing

infrastructure to substantially expand capacity. As the private sector finds it difficult

to assemble land and get clearances, the State would assume a pro-active role in

partnership with state governments. Project specific Special Purpose Vehicles (SPVs)

would be floated for identified sites which would assemble land, obtain necessary

approvals & clearances and tie up water and raw materials. Thereafter, SPV would be

offered in a transparent manner for takeover by investors in both public and private

sector companies through fair & transparent competitive bidding process. The SPVs

would be evolved on the principle of inclusive & sustainable growth dovetailing key

issues concerning development of local community, economic development of the

region, social equity, appropriate technology for mineral extraction & metal production

and ensure sustainability.

Steel being a core industry, setting up large capacity / ultra mega integrated steel plants

(UMSP) generates ripple effect through its linkages with upstream and downstream

industries such as development of metal, chemical & ceramic based industries in the

adjoining region, development of services / health / education / training centres as well

as market expansion for local populace / rural-urban shift and generation of direct /

indirect employment in and around the region.

The constraints in steel sector investment such as delays in land acquisition, change

in land use, providing land for compensatory afforestation, water & mineral linkages

and environmental & forest clearances are mostly attributable at the State Govt.

level. In order to incentivize State Governments to assume more pro-active approach

to expedite setting up Steel Projects, High Level Committee on Manufacturing (HLCM)


22

has suggested the following measures :

1. Identify & develop locations where steel plants can be competitively set up

through dedicated SPVs who shall take up land acquisition, secure regulatory

clearances, water linkages etc. for steel plants.

2. State Governments can be invited to participate in these SPVs. State Government

nominated Agency alongwith a Central PSU could be jointly allocated an iron ore

mine which would provide the iron ore linkage to the steel project at market

rates.

3. Steel Ministry has identified NMDC as the Central Agency to set up SPV for

Greenfield steel projects.

The SPV model envisaged would have the following features :

a) Land acquisition, obtaining environment & forest clearance, arranging water

linkage, developing common infrastructure & logistics plan including one single

dedicated power source for industry as well as township.

b) State Govt. participation through formation of Joint Venture between State Govt.

nominated agency and Central PSU NMDC whom iron ore mines can be jointed

allocated for development and providing iron ore linkage to the steel project at

market rates on long term basis.

c) Planning for world class township equipped with good quality social & civic amenities

for Project Affected Persons (PAP) and Project Affected Families (PAF).

d) Planning for institutionalized skill development centre for local populace

employability.

Ministry of Steel has initiated dialogue with iron ore rich State Governments of

Jharkhand, Odisha, Chhattisgarh and Karnataka to identify four to five locations close

to iron ore mining sites to initiate the process. The new scheme is expected to be

launched through a dedicated agency under the steel ministry. Administration of the

UMSP could also be contemplated to be given to a dedicated financing arm, set up as

Steel Finance Corporation akin to Power Finance Corporation (PFC) in case of an ultra

mega power project (UMPP).

With supportive policy framework, Indian steel industry can achieve sustainable

development and emerge as a major global steel player.


23

8.0 Conclusion

Post liberalization, the Indian steel industry entered an unprecedented dynamic phase

of development. This benefited many steel producers (Chiefly the private sector,

in terms of new capacity additions). The multi-vector developments in the Social,

political, economic, environmental and global spheres have thrown several challenges

and opportunities for the Indian steel industry which is the fastest growing industry

at the rate of above 5% globally. These forces have necessitated an urgent “collective

engagement” & redoubling of efforts on part of the industry leaders, technocrats,

bureaucrats, political leaders and all the stake-holding institutions to re-orient the

existing industrial paradigm best suited for leveraging the opportunities and containing

the challenges in a sustainable manner. The proposition of “Special purpose vehicle”

along with the setting up of the “Ultra mega steel plant “ is one such means to attain

the desired end.

HHH

References:

1) Working group report for the 12th FY plan for the Iron & Steel industry

2) National Steel Policy-2012 (Draft)

3) World Steel Dynamics

4) World Steel Association

5) www.pib.nic.in

6) Working group report for 12th FY Plan for Power

7) Ministry of Power

8) Draft National Water Policy 2012

9) Railway Vision 2025

10) Maritime Agenda (2010-2020)


24

Axcend Automation & Software Solutions

Continuous Casting: Get more from your Caster

Steel, being the most important Engineering raw material, is the key for the growth

of Manufacturing Industry. A strong steel sector propels industry growth, which in

turn drives economy’s growth. Such is the might of this metal which is facing turbulent

times in its growth trajectory.

While Steel is the base of all industries, Continuous Casting is emerging as the preferred

choice in steel making. The basic concept in continuous casting is the use of an open

ended mold to cast an indefinite length of the desired cross sectional shape.

Continuous casting transforms molten metal into solid on a continuous basis and

includes a variety of important commercial processes. These processes are the most

efficient way to solidify large volumes of metal into simple shapes for subsequent

processing. Most basic metals are mass-produced using a continuous casting process.

The molten metal solidifies against the mold walls while it is simultaneously withdrawn

from the bottom of the mold at aratewhich maintains the solid / liquid interface at a

constant position with time. The process works best when it operates such that all the

parameters remain steady.In case of Continuous casting, the capital cost is higher, but

the operating cost is lesser, when compared to other casting processes. It is the most

cost-efficient and energy-efficient method to mass-produce semifinished metal products

with consistent quality in a variety of sizes and shapes. Continuous Casting, along with

other benefits, provides benefits such as considerably lower pollution, improved labour

productivity and improved quality, as compared to the conventional methods.

The main challenges facing the steel industry

today are under-utilization of capacity, high

raw material costs, high energy costs and price

volatility. There’s an adage which says “Even

the best can be bettered.” It perfectly applies

to Continuous casting. Industry leaders always


25

work on this concept of “there is a better way” and don’t settle for less. One of the

thought processes is how to get more from the investments on continuous casters

by optimization of the operations. This thought process is vital in the current tough

market conditions. Evolution of manufacturing processes through perfect application

of technology provides the

right platform to optimized manufacturing operations. Steel manufacturers consistently

focus on to attend high quality of the yield and reduce scrap. This article contains the

overview of all the processes involved to get more from your caster.

Challenges

In the continuous casting process of steel making, the challenges are manifold. As the

plant operates on 24/7 basis, it demands enormous manual efforts to continuously

monitor and ensure desired quality of steel output. Continuous monitoring of the mold

signals is important to detect common issues that occur during the casting process.

Taking appropriate actions such as reducing cast speed, controlling water spray,

cascading, secondary processing, up/down grading through manual inspection at the

right time becomes important to achieve intended quality.

Presently, Quality inspection of samples takes place after the production which leaves

no opportunity for corrective action. Defect at specific points leads to lower grading

of entire length of bloom/billet. Blooms graded to lower quality levels need to be sold

at lower cost, thus adversely impacting the profitability. In fact, severe defects force

categorization to scrap grade. Minimizing these scrap levels is a key plant objective.

Solution Approach

Considering above challenges, here is a real time probabilistic system that helps in

grading by identifying and segregating different quality levels, while casting. It also

enables optimization of production by reducing wastage. It helps in identifying the

defects and taking corrective actions to achieve better quality of steel. Defects can

be analyzed and specific affected area of bloom made visible. Operators can use this

information and decide the quality levels for each slab/bloom/billet. Best processes are

defined from the knowhow of the steel casting process and any deviation while casting

is recorded and analyzed to identify the quality levels achieved. It also enables users


26

to define a framework wherein standard practices are set and necessary corrective

actions can be built incrementally.

Input: Grading Rules & Actual Process Signal

Grading rules provide standard set points for categorizing quality. Application Software

defines rules for quality, which can be customized for the different customers and

grades. Process signals like liquid metal temperature (especially the superheat value),

level of liquid steel in the mold, quality of electromagnetic stirring, casting speed,

tundish weight, tundish temperature, spray cooling and other real time signals are

logged from field instruments and control system. These act as inputs for the grading

system.

Output: Grading & Assign Quality Levels

Application software receives the input data, which is weighed against the predefined

rules. Based on these results, system will identify the quality level of the slab/bloom/

billet. The system identifies a specific length in a slab/bloom/billet as poor or best

quality, thus providing an opportunity for the operators to take corrective actions like

surface treatment for the specific length. Hence, cast product can be upgraded to

better quality which commands higher price. The algorithms developed based on the

rich tacit knowledge gained over the years helps in defining the quality (both surface

quality and internal composition) of steel. It is observed that the results produced by

this kind of analysis could be fine-tuned to get 70-80% accuracy.


27

Implementation

The above diagram gives an overview of the implementation of online grading and tracking

application at different layers. The required information is gathered by integrating PLC

and SCADA.PLC monitors and controls all the casting machine operations, and SCADA

serves as visualization application for operators.

to monitor and control. All critical operations of the casting process are controlled by

operators. Data acquisition system is put in place to collect key process signals from

PLC, SCADA and then logged into database at regular intervals. Application software

fetches the process data from the database and required analysis is carried out based

on algorithms and set of defined rules to identify the quality level of cast products.

For a given heat/sequence, it is assumed that chemical composition of the steel grade

remains same. However, based on event generation the quality level of each bloom

produced can be segregated as 1st Best, 2nd best, and 3rd best and so on.

Spray Cooling is also one of the key processes which would have direct impact on

quality levels. In order to maintain right cooling based on chemical composition and

its grade, water volumes to be sprayed for each zone are decided and are sent back to

SCADA to spray. This is done to reduce the deviations.


28

In water flow levels and to ensure optimal cooling based on specific grade of steel.

Hence, it helps in achieving better quality of a product. Based on production, process

& quality parameters we can:

• Monitor and track production & inventory system.

• Define better pricing strategy based on quality levels achieved during

production.

Data Integration layer from production control systems to enterprise layer gives a

realistic view of production details, process and inventory. This would help in doing a

better planning and control of production on an enterprise level.

Solution Benefits

• Optimized process flow and plant utilization through real time application.

• Optimized schedule to obtain maximum output from the tonnage cast.


29

• Customer specific configurations for casting, quality, strand cutting etc.

• Advanced spray cooling system to avoid sudden changes in the strand thermal

history resulting in more consistently better quality of steel and reduce incidents

of surface defects and cracks.

• Informed decision making through improved real time visibility.

• Increased price realization by improving quality grade& higher profitability by

reducing scrap.

The Steel industry is facing tough challenges in meeting profitability goals. By making

caster operations more visible, we can have significant contribution in revenue by

segregating the quality levels & billing them according to appropriate pricing strategy.

At the other end, growing demands of production can be met by process optimization

and reduction of wastages caused by surface defects, cracks and other defects.

HHH


30

I refer my presentation in 3rd. India Steel Summit held on 8th July 2009 (page-

62) wherein I touched about utilization of Low Fe Content iron ore fines in order

to prepare pellets suitable for small, medium and large scale industries with the

capacity varying between 0.3 to 1.2 MTPA pellet plant with matching Benefication

Plant.

Considering lot of hassles in getting the iron ore tested through the appropriate technical

lab located in overseas countries which cost the buyer a huge sum of money to arrive

at a decision in order to accept performance guarantee provided by technological

provider in overseas countries.

Subsequently, the undersigned had the opportunity to interact with a Technological

Provider in overseas countries as regards the bench-mark for acceptance of concentrate

characteristics ( iron ore Fe content varying between 56 to 58 % to undergo benefication

process in order to remove the slime and improve the Fe content of ore characteristics)

to arrive at minimum 62 % concentrate Fe.

Normally, technological provider insists upon sending iron ore samples for testing

at their Laboratory for characterization of iron ore to be received from the clients.

Generally, they ask for three sets of samples and the samples received at their

Laboratory in overseas countries in the form of Blue Dusts, Crushed Fines and

Washed Fines.

The three ores contain the same minerals but in different proportions. Iron is in the

form of haematite, goethetite, limonite. The source of alumina and silica is alumina

hydroxide and quartz, as shown in Table-1 and Table-2 gives the washed fines

chemical analysis.

Bikash Roy Choudhury

Chief Executive Officer, Adhunik Corporation Limited

Issues In Pelletization Technology


31

Table-1: MINERALS IDENTIFICATION OF THREE ORES

Element Minerals Blue Dust Crushed Fines Washed Fines

Fe

Hematite

Goethite

Liminite

+++

++

++

+++

++

++

+++

+++

++

Al Al hydroxide + + +

Si Quartz + + +

+++) 40 – 60 %; ++) 20 – 40 % ; +) < 5 %

Table-2: WASHED FINES CHEMICAL ANALYSIS

% Fe tot Total +16 M-16M +

35 M

-35M +

100M

-100M +

200M

-200M

+ 325M-325 M

%Fe tot 61.7 61.9 61.5 61.1 59.3 59.6 58.2

%SIO2 1.83 1.71 2.09 2.15 3.24 3.39 4.89

%Al2 O3 3.41 3.25 3.48 3.58 4.51 4.55 5.36

%MgO <0.04 <0.04 <0.04 <0.04 <0.04 <0.04 0.06

%CaO 0.04 0.03 0.04 0.04 0.10 0.14 0.14

%P2O5 0.22 0.207 0.211 0.213 0.219 0.223 0.212

% LOI 6.64 5.99 6.06 5.90 6.68 6.40 5.57

% weight 100 73.1 14.6 9.9 0.7 0.3 1.4

At least 70 % of their LOI ( loss of ignition can be removed at 3300C ) . The three ores

have similar grinding work as shown in Table – 3 below :

TABLE-3: BOND INDEX OF THE THREE ORES

P80As received material

WikWh / t

WFor regrinding to P80 = 75 microns (kWh/t)

Blue Dust 2380 12.1 11.5

Crushed Fines 4274 12.0 12.0

Washed Fines 5659 11.9 12.2


32

Determination of pelletization particle size distribution :

Pelletizing particle size distribution was fixed by the maximum top size targeted ( 5 %

+ 100 Mesh ) which resulted in the following :

• Blaine = 2500 to 2700 cm2 / g

• % - 325 mesh = 64 to 66 %

Most of the pellet plant producers in small and medium scale industries largely

depends upon sourcing of iron ore, iron ore fines from different mines / traders

and the characteristics of iron ore fines varies from mines to mines centering

Jharkhand, Orissa, Chhattisgarh states and the Technological Provider will undertake

performance guarantee for the pellet plant project only when tests are conducted

and meets their requirements. The above technological provider carries out the

following tests :

1) Determination of ore particle size for pelletizing

2) Determination of pellet chemistry

3) Ore re-grinding condition

4) Balling condition

5) Development of firing condition

6) Fix the pellet quality

7) Impact of fired pellet recirculation on quality

After determining all these factors, then they will give the Performance Guarantee.

The undersigned took up the issue with the Technological Provider for arriving at

an acceptable norms for concentrate characteristics considering the investors who

are largely depending upon outsourcing and they do not have their own mines and

investment to the tune of Rs.300 crores approx. for a capacity plant of 1.2 MTPA pellet

plant and matching Benefication Plant.

After lot of deliberations with the Technological Provider the following norms as shown

in Table- 4 given below have been accepted :


33

Table-4: Concentrate Characteristics

Item Wt. %

Fe Min 62 %

SiO2 + Al2O3 Max. 7 %

SiO2 / AL2O3 Wt. ratio Min. 1.2

LOI Max. 4 %

Particle SizeMax. 2 % > 100 mesh

Min. 70 % < 325 mesh

Fuel:

Secondly, considering the fuel cost being very exorbitant (producer gas / coal gas )

affecting the production cost and thereby the gross contribution is very much minimal.

The technological provider has been asked to use coal gas / producer gas along with

the fuel (furnace oil) in order to lower the cost per ton of pellets. The technological

provider has given their consent for use of coal / producer gas as per given below

properties. This chapter also deals with fuel oil properties of Oil Companies (in this

case Bharat Petroleum) :

Table-5: FUEL

Typical Fuel Gas (Coal Gas) Properties

Gas Component Units

CO%

CO2%

H2%

CH4%

N2%

C2H4%

O2%

H2S%

H20Max. Dew Point Temp., 0C

Dust mg/Nm3

Producer Gas 25 6 13 1.5 53 0 0.6 0.2 5 5

Property

Units

Min. Pressure at Indurat-ing Machine BMS Kg/cm2

Max.Temp. at Indurating Machine

BMS 0C

Min. Calorific Value

Kcal/Nm3

Max Calorific Value

Kcal / Nm3

NH3

Mg/Nm3

CaH10

Mg / Nm3

Producer Gas 0.97 50 1350

Table-8: Fuel Oil Properties

Furnace Oil MV2 Carbon Hydrogen Oxygen Nitrogen Sulfur Water Ash

Composition Wt. % 84 11 0.5 0.4 3.5 0.5 0.1


34

Characteristics Grade MV2 Requirements

Inorganic acidity Nil

Ash, % wt.Max 0.1

Gross Calorific Value, cal/gm 10,000

Density at 150 C Assume 0.95

Flash Point 0C.min 66

Kinematic

Viscosity, centistokes @ 500 C 125 - 180

Sediment, % wt. Max 0.25

Sulfur, total % wt.Max 4.0

Water content , % v/v Max 1.0

Pour Point, 0C, Max 27

For allowing at this accepted norms, particularly for the iron ore characteristics and

producer / coal gas was discussed and deliberated upon with the Technological Provider

and ultimately the consensus has been arrived in the foregoing paragraphs and the

undersigned hope that above feedback may help the industries looking for setting up

of benefication and pelletization plant.

HHH


35

ASSOCHAMTHE KNOWLEDGE ARCHITECT OF CORPORATE INDIA

EvOLuTION OF vALuE CREATORASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. Having in its fold more than 400 Chambers and Trade Associations, and serving more than 4,00,000 members from all over India. It has witnessed upswings as well as upheavals of Indian Economy, and contributed significantly by playing a catalytic role in shaping up the Trade, Commerce and Industrial environment of the country.

Today, ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the technology driven cyber age of ‘Knowledge Based Economy’.

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ASSOCHAM derives its strength from its Promoter Chambers and other Industry/Regional Chambers/Associations spread all over the country.

vISION

Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the barrierless technology driven global market and help them upscale, align and emerge as formidable player in respective business segments.

MISSION

As a representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and interests of its members. Its mission is to impact the policy and legislative environment so as to foster balanced economic, industrial and social development. We believe education, IT, BT, Health, Corporate Social responsibility and environment to be the critical success factors.

MEMbERS – OuR STRENGTH

ASSOCHAM represents the interests of more than 4,00,000 direct and indirect members across the country. Through its heterogeneous membership, ASSOCHAM combines the entrepreneurial spirit and business acumen of owners with management skills and expertise of professionals to set itself apart as a Chamber with a difference.


36

Currently, ASSOCHAM has more than 100 National Councils covering the entire gamut of economic activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field of Corporate Social Responsibility, Environment & Safety, HR & Labour Affairs, Corporate Governance, Information Technology, Biotechnology, Telecom, Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs, Mergers & Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal Reforms, Real Estate and Rural Development, Competency Building & Skill Development to mention a few.

INSIGHT INTO ‘NEW buSINESS MODELS’

ASSOCHAM has been a significant contributory factor in the emergence of new-age Indian Corporates, characterized by a new mindset and global ambition for dominating the international business. The Chamber has addressed itself to the key areas like India as Investment Destination, Achieving International Competitiveness, Promoting International Trade, Corporate Strategies for Enhancing Stakeholders Value, Government Policies in sustaining India’s Development, Infrastructure Development for enhancing India’s Competitiveness, Building Indian MNCs, Role of Financial Sector the Catalyst for India’s Transformation.

ASSOCHAM derives its strengths from the following Promoter Chambers: Bombay Chamber of Commerce & Industry, Mumbai; Cochin Chambers of Commerce & Industry, Cochin: Indian Merchant’s Chamber, Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and Industry, New Delhi and has over 4 Lakh Direct / Indirect members.

Together, we can make a significant difference to the burden that our nation carries and bring in a bright, new tomorrow for our nation.

The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Office:5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009 Email: [email protected] • Website: www.assocham.org

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