Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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ALAKNANDA SPONGE IRON LIMITED
PRE FEASIBILITY REPORT
P.S. - KANKSA, MOUZA-BAMUNARA, VILLAGE-GOPALPUR, DISTRICT- BURDWAN,
WEST BENGAL, PIN -713212
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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TABLE OF CONTENT
1 EXECUTIVE SUMMARY 4
2 INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION
2.1 Identification of the project and project proponent 5
2.2 Brief Description of Nature of Project. 7
2.3 Need for the Project & Importance to the Country 7
2.4 Demand and Supply gap 13
2.5 Imports Vs. Indigenous production 16
2.6 Export Possibility 16
2.7 Domestic/Export Markets 17
2.8 Employment Generation (Direct & Indirect) due to the project 18
3 PROJECT DESCRIPTION
3.1 Type of Project including Interlinked and Interdependent Projects, if any 19
3.2 Location (map showing general location, specific location and project
boundary & project site layout) with coordinates
19
3.3 Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental consideration gone into should
be highlighted.
22
3.4 Size and Magnitude of Operation 22
3.5 Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc.
should be given)
23
3.6 Raw Material Required Along Estimated Quantity, Likely Source, and
Marketing Area of Final Product/s Mode Of Transport Of Raw
Material And Finished Product.
24
3.7 Resource optimization/recycling and reuse envisaged in the
project, if any, should be briefly outlined.
24
3.8 Availability of water its source, Energy/Power requirement and source should be given.
25
3.9 Quantity of waste to be generated (liquid and solid) and scheme for
their management/disposal.
26
4 SITE ANALYSIS
4.1 Connectivity 26
4.2 Land form, Land use and Land ownership 27
4.3 Topography (along with map) 28
4.4 Existing land use pattern 29
4.5 Existing Infrastructure 31
4.6 Soil Classification 32
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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4.7 Climatic data from secondary sources 32
4.8 Social Infrastructure available 32
5 PLANNING BRIEF
5.1 Planning concept 35
5.2 Population Projection 35
5.3 Land use planning 36
5.4 Assessment of Infrastructure Demand (Physical & Social) 37
5.5 Amenities/Facilities 38
6 PROPOSED INFRASTRUCTURE
6.1 Industrial Area (Processing Area) 38
6.2 Resident Area (Non Processing Area) 39
6.3 Green Belt 39
6.4 Social Infrastructure 40
6.5 Connectivity (Traffic and transportation Road/Rail/Metro/Water ways etc)
40
6.6 Drinking Water Management (Source & supply of water) 40
6.7 Sewerage System 41
6.8 Industrial Waste Management 41
6.9 Solid waste Management 42
6.10 Power Requirement 42
7 REHABILITATION AND RESETTLEMENT(R&R PLAN) 42
8 PROJECT SCHEDULE AND COST ESTIMATES
8.1 (Likely date of start of construction and likely date of completion (time
schedule for the project to be given)
43
8.2 Estimated project cost and along with analysis in terms
of economic viability of the project.
43
9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) 44
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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1. EXECUTIVE SUMMARY
Alaknanda Sponge Iron Limited is one of the renowned manufacturers
engaged in offering a durable range of TMT Bars. Mainly the group manufactures
sponge iron, steel billets, TMT bars and trades minerals like iron ore and
manganese ore. The company manufactures various products complying with the
international standards of quality. These corrosion resistant and highly durable
products are ideal for reinforcement, construction of Bridges, Dams, Industrial
Structures, Coastal Construction, High-rise Buildings, Thermal & Hydel Power
Plants, Underground/Raised Platforms, and Concrete Reinforcement.
The Company’s registered office is situated at 41A, A.J.C. Bose Road, Diamond
Prestige Building, 2nd Floor, Room No. 213, Kolkata – 700017.
The existing manufacturing unit is located at P.S Kanksa, Mouza- Bamunara,
Village- Gopalpur, District- Burdwan, Durgapur –713212 on a freehold land of 6.59
acres.
However subsequently realizing the importance, the management has decided to
install 2 x 20 Tonnes Induction furnace with Ladle Refining Furnace and 100000
MTPA Rolling Mill. For that new project the company has purchased an adjacent
land of 6.98 acres at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District-
Burdwan, Durgapur –713212.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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2. INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION
2.1. Identification of the project and project proponent.
In order to raise the production and also ensuring steady supply of billets, as well
as the importance of economy of scale, the management of Alaknanda Sponge
Iron Limited has decided to increase steel melting capacity by setting up
Induction Furnace unit.
Now the company is going to operate a steel plant comprising of 2 nos. Induction
furnaces of 15 MT each and 4x7 meter 2 strand continuous caster with provision
of third Strand for production of Billets and also a 240 Tonnes/day Rolling mill with
wire rod block mill line for manufacturing TMT Bars and rounds.
However, realizing the magnitude of economy of scale and higher profitability the
management comes to a decision to go for the following addition:
Particulars Existing Subsequent
Modification/Addition
Induction Furnace 2 no 15 MT - Consent to Establish
obtained from (WBPCB)
2 no 20 MT
M.S. Billets 84600 Tonnes/ Annum 112800 Tonnes/
Annum
Continuous Caster 1 Nos. 4x7 Meter 2 strand- Consent to
Establish obtained from (WBPCB)
-
Rolling mill 72000 Tonnes/ Annum - Consent to
Operate obtained from (WBPCB)
100000 Tonnes/
Annum
Ladle Refining
Furnace
- 25MT
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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ESTIMATION OF PROPOSED PLANT CAPACITY
No of Induction Furnace 2.00
Capacity (MT) MT 20.00
Total Production (MT) /heat MT/heat 40
No of Heats Per day 10
Number of days available Per annum 300
Total Liquid Metal Production MT 1,20,000
Actual Yield of Billets @ 94% MT 1,12,800
BACKGROUND OF THE PROMOTERS
The background of the key promoters is given as follows:
Particulars Description
Name Shri Vishal Saraogi
Father’s Name Shri Raj kumar Saraogi
Educational Qualification Graduate
Age 41 Years
Address Flat No 605, Akashdeep, 493B/3, G.T. Road (South),
Howrah-711102
Existing Activity Is in manufacturing of TMT for past 10 years under the
brand name Kamdhenu & Kay2 and in Steel Trading business
for last 20 years
Director/ Partner other
than Alaknanda Sponge
Iron Limited
1) Alaknanda Metals Pvt. Ltd., 2) Green View Goods Pvt. Ltd.
3) Golden Casting & Ispat Ltd.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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2.2. Brief Description of Nature of Project.
In a modernization drive, the management has decided to install 2 no. of 20 MT
Induction Furnace adjacent to the existing plant area.
Existing: 2 No. 15MT Induction Furnace, 1 Nos. 4x7 Meter 2 strand Continuous
Casting Machine with provision of third Strand, 1 Nos. 240 Tonnes/day Rolling mill
with wire rod block mill line
Expansion: Addition of 2 No. 20 MT Induction Furnace, 1 Nos. 310 Tonnes/day
Rolling mill, Ladle Refining Furnace
2.3. Need for the Project & Importance to the Country
Steel is important for growth of any modern economy and is considered to be the
backbone of human civilization. Steel industry is the second biggest industry in
Particulars Description
Name Shri Anand Saraogi
Father’s Name Shri Raj kumar Saraogi
Educational Qualification Graduate
Age 46 Years
Address Flat No 605, Akashdeep, 493B/3, G.T. Road (South),
Howrah-711102
Existing Activity Is in manufacturing of TMT for past 10 years under the
brand name Kamdhenu & Kay2 and in Steel Trading business
for last 20 years
Director other than
Alaknanda Sponge Iron
Limited
1) Alaknanda Metals Pvt. Ltd., 2) Green View Goods Pvt. Ltd.
3) Jhankar Tradelinks Pvt. Ltd. 4) Alaknanda Ispat Pvt. Ltd.
5) Alaknanda Infraproperties Pvt. Ltd. 6) Jindal Steel
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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the world after oil and gas with an estimated global turnover of USD 900 billion.
Steel is used in every important industry: energy, construction, automotive and
transportation, infrastructure, packaging and machinery. It is also the main
material used in delivering renewable energy such as thermal, solar and tidal
power. The housing and construction sector is the largest consumer of steel
today, using around 50% of steel produced. Per capita consumption of steel is
treated as one of the significant index for measurement of socioeconomic
development level and living standards of the people in any country. Steel industry
is in the front line in the liberalization of the industrial sector and has made fast
steps since long. The new plants have also brought about a larger regional
dispersal easing the domestic supply position. The domestic steel industry faces
new challenges. The domestic demand too has not improved to significant levels.
The Indian steel industry is broadly categorised into public sector and private
sector players. These players are either integrated producers or standalone
producers of various steel products.
From assessment of secondary information, it is noted that
Integrated Producers are players whose value chain extends from iron ore
processing to finished steel production at a single location or at a combination of
locations.
Public sector players like Steel Authority of India Limited (SAIL), and Rashtriya
Ispat Nigam Limited (RINL) as well as private players like Jindal Steel and Power
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Limited JSPL, Jai Balaji Industries Limited, Tata Steel and JSW Steel are
integrated producers.
These players mostly adopt the primary route for manufacturing steel.
The major charecteristics of the integrated producers are,
Integrated players are big in size with facility starting from BF to rolling mills, that
is they operate in the entire value chain.
Some of the integrated players also have iron ore mining facility of their own or
through their subsidiary companies.
These players generate better margin because of their presence in the entire value
chain.
Overall, many of these players have been the pioneers in the industry in India.
Standalone Producers are referred to those players, who may not be operating in
the entire value chain, rather they operate in one or two intermediates/ products
lines only. These include players like Essar Steel, Lloyds Steel and Ispat Industries.
These players mostly adopt the secondary route for manufacturing of steel.
The charecteristics of the standalone producers are,
They does not operate across the value chain.
A large number of small players exists in the secondary producers segment.
While large players among the standalone producers enjoy economics of scale,
small players strive for survival.
In standalone producers there are almost 33 working Electric arc furnace (EAF)
based units and 970 working Induction furnace-based units in India.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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India is the first country using Induction Melting Furnaces for making mild steel. As
a matter of fact, EAFs are not making mild steel of structural quality for over a
decade now. The bulk of structural quality mild steel for long products is
manufactured by Induction Melting Furnaces. During 2001-2002 period, over 4.5
million tonnes of steel were produced by Induction Furnaces. The EAF units have
also installed Induction Melting Furnaces.
There are several reasons for the popularity of Induction Melting Furnaces for
making steel as
● They consume less power compared to EAFs.
● Expenditure on electrode is nil.
● They use lesser quantity of refractory.
● Initial investment is less on plant and equipment.
Thus, there are economic advantages in making steel through Induction Furnaces
route. The only snag is that at present bulk quantity steel cannot be produced
through Induction Furnace route.
Overview of Steel Sector:
Slow down in Chinese consumption to keep global steel demand depressed in FY
2016.
Automobile sector to drive domestic demand for steel consumption in the near
term, however cheaper imports to be a major concern for Indian steel producers.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Following the sharp correction in international prices of iron ore, NMDC has
reduced the price of iron ore fines (65 Fe) by as much as 20% and lumps by
6% at the start of FY16.
After the enactment of the Mines And Mineral (Development &
Regulation) Amendment Act , 2015 (MMDR Act 2015), mining leases which
expired after their first renewal stand automatically extended till 31 March
2020 (for merchant miners) and up to 31 March 2030 (for captive miners).
The domestic iron ore industry has suffered considerably in the last 3-4 years
due to compliance and regulatory issues. A rule based system (auction by
competitive bidding) is likely to mitigate such risk in the future.
Contribution to District Mineral Foundation, as per the MMDR Act is estimated to
raise the cost of steel production in India. As per the MMDRA Act 2015, for
leases signed before January 2015 the Government has recommended up to
100% of the royalty payment to be shared by the miners with the District
Mineral Foundation (DMF) which will be used for development activities in areas
affected by mining.
World steel capacity utilization declined to 76.7% in FY14 from 78.4% in FY13
as a result of surplus capacity and weak demand conditions globally. As per the
World Steel Association (WSA), crude steel production growth stood at 1.2%
in FY15. Slowing economic growth and clampdown on pollution by the
government in China reporting lowest production growth since 1981.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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The global steel sector remains under pressure: Excess capacity to put pressure
on the global steel sector particularly in light of the uneven economic growth and
weak steel demand. Globally several rapid growth markets have not performed
up to the expectations in creating demand during the past two years.
Indian steel industry : Production for Sale (in million tonnes)
Category 2010-11 2011-12 2012-13 2013-14 2014-15
Pig Iron 5.68 5.371 6.870 7.950 9.694
Sponge Iron 25.08 19.63 14.33 18.20 20.38
Total Finished Steel (alloy +
non alloy)
68.62 75.70 81.68 87.67 91.46
Source: Joint Plant Committee
Period Demand
(consumption)
Production
Capacities
Utilisation %
Imports
Exports
2010-11 65 64 71 90 5.8 3.2
2011-12 70 77 89 86 5.4 4.2
2012-13 71 77 93 82 6.3 4.8
2013-14 73 85 111 76 4.3 5.5
2014-15 77 88 120 73 6.8 4.8
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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2.4. Demand and Supply gap
Demand - Availability Projection
Demand – availability of iron and steel in the country is projected by Ministry of Steel
in its Five Yearly Plan documents.
Gaps in availability are met mostly through imports.
Interface with consumers by way of a Steel Consumers’ Council exists, which is
conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.
Demand Supply Gap
Table - 1 Shows The Gap In Demand And Supply For The Period FY06 To
FY11.
Table - 1: Domestic Steel Demand Supply Gap (in MMT)
Description FY-08 FY-09 FY-10 FY-11 FY-12
Demand 58.03 58.57 64.76 69.35 71.82
Supply 56.08 57.16 60.62 66.01 69.24
Gap 1.95 1.40 4.13 3.34 2.57
Source: Ministry of Steel (GOI) and MM Analysis
Demand supply gap exists in the domestic steel market which can be attributed from
the fact that imports have been always more than exports during FY08-12. Hence the
excess demand has been met by imports.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Demand
Figure - 1 represents the doemestic demand for finished steel. The doemstic
apparent consumption have been considered has historic demand for India. It is
observed that:
Domestic demand for steel has registered a CAGR of 6.58% during the period
2007-12.
The demand shrunk in FY 09 influenced by the slow down in the industrial and
infrastructure activity due to global recessionary impacts.
The same rebounded in FY10 due to increased infrastructure investment. The Y-o-
Y growth over FY09 has been attractive at 10.6%.
Figure: 1 Domestic Demand of Steel
Source: MOS and MM Analysis
Supply
The production trend for steel have been indicated. It is inferred from the analysis
of the that:
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Domestic production registered a CAGR of 5.7% during 2007-12.
Although the domestic steel industry have been growing steadily to pace up with
the demand, it is noted that the growth rate in production have been lagging
behind the growth rate in demand.
The decline in growth during FY12 can be attributed to the fact that the industry
faced raw material constraint in the form of shortage of iron ore.
The demand supply gap may be as follows:
(Figure in MnT)
Products 2017 (Phase -1) 2021 (Phase 2) 2027 (Phase 3)
Projected Demand 117.52 152.24 200.84
Supply from Domestic
producers
111.76 143.16 184.80
Demand supply Gap 5.76 9.08 16.04
The demand supply gap is met through imports. However the domestic suppliers have
the option to narrow down the gap. The Indian steel industry is expected to turn
around with a sizable growth in years to come.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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2.5. Imports Vs. Indigenous production
The state and pattern of growth of the economy determine the steel requirement.
The requirements of steel may be fulfilled either through indigenous production
and/or through imports. It is not possible for a developing country to import huge
quantities of steel because of foreign exchange constraints where as it is better for
a country to be self-sufficient in its steel requirements. Table 2 gives the equation
for 2019-20 and the projected compounded annual growth rates for production,
imports, exports and consumption in India.
Table 2: Production, Imports, Exports and Consumption of Steel
(in million tonnes) Production
Production Imports Exports Consumption
2019-20 110 6 26 90
2004-05 38 2 4 36
Compounded
Annual Growth
Rate (CAGR)
7.3% 7.1% 13.3% 6.9%
Source: www.steel.gov.in /nspolicy2005.pdf (National Steel Policy –
2005)
2.6. Export Possibility
In 2014, the world crude steel production reached 1665 million tonnes (mt) and
showed a growth of 1% over 2013. India remained at the 3rd position as the
world’s crude steel producer in 2015. There may be large opportunities to become
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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a global supplier of quality steel. Also there exists ample market opportunities in
the neighboring regions of Asia, Africa and the Middle East.
2.7. Domestic/Export Markets
Import Export Trend
The domestic import export trend of steel during FY08-12 is indicated in Figure 2.
Figure 2 : Steel Imports Exports Trend
Source : MoS and DGFT
It is observed that, import has been in an increasing trend, while export is
declining. To be specific, while import has increased at a CAGR of 6.1% during
FY08-12, export has registered a negative CAGR of 5.1% during the same period.
Import Export trend of steel during 2013-14 & 2014-15 are given below:
Total Finished Steel (Alloy + Non Alloy) (In Million Tonnes)
Year 2013-14 2014-15
Imports 5.45 9.32
Exports 5.98 5.59
Source: Joint Plant Committee
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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2.8. Employment Generation (Direct & Indirect) due to the project
The manpower for additional project is given as per the Table below.
Personnel & Employment
Sl. No. Item No Per Shift Total
Induction
1. Furnace operator (Highly Skilled) 2 6
2. Assistant furnace operator (SK) 2 6
3. Gas Cutter/ Welder (SK) 2 6
4. Helper (SSK) 2 6
5. Mechanical Fitter (SK) 2 6
6. Electrician (SK) 2 6
7. Helper (SSK) 2 6
8. Pump/ Comp Attendant Attendant (SSK) 2 6
48
Workmen in Concast and LRF
9. Skilled Workmen 2 6
10. SSK 4 12
18
Rolling Mill
11. Operator 2
12. Skilled Manpower 12
13. Unskilled 30
14. Electrician 2
15. Laboratory 2
16. Maintenance 4
52
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3. PROJECT DESCRIPTION
3.1. Type of Project including Interlinked and Interdependent Projects, if
any
Alakananda’s TMT bars are available in varied sizes like 10,12,16,20,22,25,28 and
32. They even make custom made products according to customer requirements.
The products are characterized as follows:
Trade Mark – Kamdhenu & Kay2 TMT
Grades – Kamdhenu & Kay2 TMT Grade Fe- 415, Fe - 500, Fe -415D & Fe – 500D
Diameter - 8,10,12,16,20,25 MM (28 and 32 min. On bulk demand)
Standard Length - 5.5 mtrs. To 12 mtrs.
3.2. Location (map showing general location, specific location and project
boundary & project site layout) with coordinates.
The factory is located at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District-
Burdwan, Durgapur –713212, at a distance of 1.0 Km from NH2. The distance of
site from Durgapur railway station is about 5 Km. The area has been declared as
Bamunara Industrial Area by Asansol Durgapur Development Authority. Original
land surface is little undulating and irregular in shape which has been developed
after taking up the project.
Total land area is around 13.57 acres. The existing freehold land area is 6.59 acres
and is occupied with the existing facilities. For the new project the company has
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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purchased an adjacent land of 6.98 acres. The site is falling under Gopalpur Gram
Panchayet. The latitude and longitude of the project site is 23°30'1"N, 87°22'22"E
respectively.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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3.3. Details of alternate sites considered and the basis of selecting the
proposed site, particularly the environmental consideration gone into
should be highlighted.
At a suitable distance from forest cover
Far from nearest habitation
Near a convenient perennial water source
Proximity of NH2
3.4. Size and Magnitude of Operation
Main input raw material required for production of TMT Bar/ Rounds is Ingot/
Billet. These Ingots/ Billets are manufactured through Induction Furnace. Sponge
iron, Steel scrap, Pig iron, Silicon Manganese and other Ferro Alloys are needed to
manufacture Ingot/ Billet.
Size and Magnitude of operation of the existing and proposed projects include:
1. Two Sets 15 MT Induction Furnace - Consent to Establish obtained from (WBPCB)
2. Two Sets of 20 MT Induction Furnaces (Proposed Addition)
3. 1 Nos. 4/7 M Radius Continuous Casting Machine - Consent to Establish obtained
from (WBPCB)
4. Rolling mill with wire rod block mill line- 72000 Tonnes/ Annum- Consent to
operate obtained from (WBPCB)
5. Rolling mill-1,00,000 Tonnes/ Annum (Proposed Addition)
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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6. Ladle Refining Furnace- 25MT for removal of Phosphorous and Sulphur
(Proposed Addition)
3.5. Project description with process details (a schematic diagram/flow chart
showing the project layout, components of the project etc. should be
given)
FLOW SHEET OF MANUFACTURING PROCESS AS A WHOLE
Liquid Metal Scrap
Billets
TMT REBARS/ WIRE RODS
Sponge Iron
Pig iron/Scrap
Fluxes/deoxidizers
Induction
Furnace
CCM
Rolling Mill
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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3.6. Raw Material Required Along Estimated Quantity, Likely Source, and
Marketing Area of Final Product/s Mode Of Transport Of Raw Material
And Finished Product.
Raw Material Requirement at 100 % Capacity
Induction
Sponge Iron MT 83280
Pig Iron MT 54720
Ferro Manganese MT 672
Ferro Silicon MT 192
Aluminium Shot MT 60
Induction (per MT of liquid metal)
Sponge Iron MT 0.6940
Pig Iron MT 0.4560
Ferro Manganese MT 0.0056
Ferro Silicon MT 0.0016
Aluminium Shot MT 0.0005
3.7. Resource optimization/recycling and reuse envisaged in the project, if
any, should be briefly outlined.
The installation will comprise of Two Units of Induction Steel Melting equipment,
each consist of Two No. Furnace Crucibles to function alternately in running or
standby mode and powered by One No. Solid State Power Supply, with One No.
Hydraulic Power Unit remote controlled through an operating console to facilitate
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Furnace Tilting / Metal Pouring. One Operator’s Control Desk shall be provided to
facilitate start-up, shut-down, power control, metering and annunciation; while
lever operated switches shall be provided with each Furnace Crucible for quick
selection and changeover.
3.8. Availability of water its source, Energy/Power requirement and source
should be given.
Electricity: The existing connected load is 15 MW and the proposed load would
be 20 MW in view of the new project and which will be sourced from DVC.
Water: Water requirement in the plant is for cooling (make-up) and domestic &
other purposes. The required water will be sourced from deep water tube well. The
total water requirement is given below:
Particulars Requirement (KLD)
Cooling Water (Make up) 9.0
Domestic purposes & Others 5.5
Total 14.50
PLANT COOLING SYSTEM
The Ground Water Reservoir of suitable capacity is filled with properly treated
water with desired level of softness. The Cooling system shall have two Cooling
Towers and four sets of Pumps. The heat absorbed by the soft water from the
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Furnace Coil, cables & the Heat Exchanger Primary is effectively cooled by the
Cooling Tower from a maximum of 460C down to 320C.
3.9. Quantity of waste to be generated (liquid and solid) and scheme for their
management/disposal.
Furnace slag will be generated as solid wastes from proposed expansion. In the
proposed unit there will be one no. of crusher cum magnetic separator. The same
will be crushed into coarse and segregated into metallic and non-metallic contents.
Metallic contents will be recycled back as raw material for captive utilization and
non-metallic contents will be disposed off for land filling or road construction. In
Induction furnace ore slag will be generated. The quantity of slag will be 800
Tonnes/month (approx). It will be disposed for land filling and road construction.
Approx. 20 Tonnes /month dust will be generated from Air pollution control system
which will be utilized in making the fly ash bricks. Scrap (Approx. 15 Tonnes
/month) from Induction furnace will be reused. Mill scale from rolling 16
Tonnes/month (approx) will be recycled in Induction furnace.
4. SITE ANALYSIS
4.1 Connectivity
The area is well connected by road to Durgapur town as well as to other industrial
town like Asansol, Raniganj, Dhanbad and other the adjoining areas by recently
developed Durgapur Expressway (NH-2). The place is connected to railway station
(Easter Railway) and towns by bus, jeeps, taxi and rickshaw. All the civic amenities
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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like market, bus stand, hospital, school, college, hotel, restaurant etc. all are
available in the town which is about 5-7 km from the site. Distance of important
steel consumption center is given below.
Kolkata – 158 KM Asansol – 42 KM Burdwan – 63 KM
Raniganj – 26 KM Dhandbad – 100 KM Suri – 52 KM
4.2. Land form, Land use and Land ownership.
Total land area is around 13.57 acres i.e. 54915.8417 sqm. The existing freehold
land area is 6.59 acres and is occupied with the existing facilities. For the new
project the company has purchased an adjacent land of 6.98 acres. The site is
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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falling under Gopalpur Gram Panchayet at P.S Kanksa, Mouza- Bamunara, Village-
Gopalpur, District- Burdwan, Durgapur –713212.
4.3. Topography (along with map)
The area has been marked on Survey of India Topo Map No. 73 M/6 and 73 M/7.
The latitude and longitude of the project site is 23°30'1"N, 87°22'22"E
respectively.
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4.4. Existing land use pattern (Agriculture, on-agriculture, forest, water
bodies (including area under CRZ), shortest distances from the periphery
of the project to the periphery of the forests, national park, wild life
sanctuary, eco sensitive areas, water bodies (distance from the HFL of
the river), CRZ in case of notified industrial area, a copy of the Gazette
notification should be industrial area, a copy of the Gazette notification
should be given.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Existing General land use
Agriculture land is a major category of land use analysis occupying about 47% of
the total area, of which single cropped occupied most of the area to about 44.2%
followed by double cropped only about 1%, Fallow land occupies of about 2.4% of
the total.
Forest vegetation found in the study area is dry deciduous in nature. Only about
18.5% of the study area under forest. About 15.7% is under degraded forest
where canopy cover is less than 10%. Moderate forest occupies of about 3%
followed by mod dense forest of about 2.8%.
Only about 2.5% of study area is under plantation. But there is an enough scope
for plantation (both forest as well as horticulture) in such an Industrial belt for
eco-restoration. About 3.2% of the study area is under scrub land.
About 5.6% area comes under water as surface water bodies of which, 0.5% is
under tank / pond etc. River sand occupied about 23% and river water is 1.7%.
About 20.4% comes under settlements both urban and normal about 16.3% area
under urban and 4.1% area is under rural settlements. Industrial area occupies
about 2.6% of the total.
Shortest Distance From Following Particulars
Periphery of the project to periphery of the forests - Within 10 km
Wild Life Sanctuary: - None (within 10 km)
Eco sensitive area: - None (within 10 km)
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Water bodies (distance from the HFL of the river)-1. Damodar river (within 10 km)
Notified industrial area: - None (within 10 Km)
4.5. Existing Infrastructure
Alaknanda Sponge Iron Limited is manufacturing MS Billets, TMT Bars and Rounds
at the existing land.
The present status of statutory clearances is given as follows:
Particulars Current Status
Land Conversion For new project, land of 6.98 acres has been
purchased. Registration and mutation are completed.
Sanction plan for new
project
Available from the factory inspector
NOC from Pollution
Control board
Induction Furnace
Rolling Mill
Continuous Caster
2 × 15 MT - Consent to Establish obtained from
(WBPCB)
240 Tons Per Day Rolling Mill with Wire Rod Block Mill
line - Consent to Operate obtained from (WBPCB)
4 X7 Metre 2 strand Continuous Caster with provision of
third Strand - Consent to Establish obtained from
(WBPCB)
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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4.6. Soil Classification
Durgapur area in Bardhaman district of West Bengal is overlain by a thin alluvial
cover and forms a transition zone between hard rock and flat gently sloping
alluvial terrain. The alluvial area stretches eastwards beyond Durgapur to the rest
of the district. Alluvial cover thickness in the Durgapur area increases in the
eastward direction.
4.7. Climatic data from secondary sources
Durgapur experiences a mixed transitional climate between the tropical wet and
dry climate and the more humid subtropical climate. March to May is dry summer
intervened by tropical cyclonic storms. June to September is wet summer while
October is autumn. Average temperature during summer season is 32 °C while at
the cold season is 20 °C. The maximum temperature during summer rises up to 45
°C while minimum temperature during winter comes down to 6°C. Average rainfall
is 1350 millimetres with the bulk of rainfall occurring around the July-September
period. The monsoon is followed by a mild, dry winter. The normal trend is -
winter season starts from about the middle of November and continues till the end
of February.
4.8. Social Infrastructure available
The situation that prevails around the plant is depicted here: Around the proposed
plant site in Bamunara under Kanksa block, there are 20 small to medium villages
(Mouza), viz. Amlajora, Bankati, Banskopa, Birudiha, Gopalpur, Ijjatganj,
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Malandighi, Natunganj, Panagar etc. The study area surrounding proposed project
site is under Industrial cum rural area. These villages are small villages, the
highest population is 12812 in Gopalpur village. The schedule cast (SC) population
is moderate, around 40 percent of total population in all these villages. Schedule
tribe (ST) population is not significant- around 2-3 percent of total population. The
schedule cast and schedule tribe population in kanksa district is 62,329 and 18,239
respectively. The literacy rate in Kanksa and Durgapur faridpur block for male are
69% and 64.9% respectively. For the Female the literacy rate in Kanksa and
Durgapur Faridpur block are 49.9% and 47.9% respectively. The sex ratio of
Kaksa block is 923 and Durgapur – faridpur block is 877 which is much less than
the sex ratio (921) of Burdwan District.
Socio Economic Features of Kanksa block
Population Rural Urban Total population
Male 62507 16067
Female 57973 14729
Total population 120480 30796 151276
Literacy Male Female Total literacy
Rural 76.60% 54.10%
Urban 84.50% 88.20%
Literacy rate 78.20% 57% 68.10%
Cast SC ST
Male 27646 7653
Female 26226 7394
Total population 53872 15047
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Main workers Marginal workers Total workers
Total workers 37136 19896 57032
Non workers - - 94244
Agricultural labor - - 18064
Household Ind. - - 2678
Other workers - - 27479
District statistical handbook 2001
Durgapur city is governed by Municipal Corporation which comes under Durgapur
Metropolitan Region. As per provisional reports of Census India, population of
Durgapur in 2011 is 566,517; whereas male and female are 294,255 and 272,262
respectively. Even though Durgapur city has population of 566,517; its urban /
metropolitan population is 580,990 of which 301,607 are males and 279,383 are
females.
Details of Durgapur City Population are given below:
Total Male Female
City
Population
566,517 294,255 272,262
Literates 439,225 240,985 198,240
Children (0-6) 55,906 28,878 27,028
Average
Literacy (%)
86.02 % 90.81 % 80.84 %
Sex ratio 925
Child Sex ratio 936
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5. PLANNING BRIEF
5.1. Planning concept (type of industries, facilities, transportation etc) town and
country planning/Development authority Classification.
The site is falling under Gopalpur Gram Panchayet at P.S Kanksa, Mouza-
Bamunara, Village- Gopalpur, District- Burdwan, Durgapur –713212. Necessary
development will be made with the help of local panchayet.
5.2. Population Projection
In 2011, Barddhaman had population of 7,717,563 among which male and female
were 3,966,889 and 3,750,674 respectively. Out of the total Barddhaman
population for 2011 census, 39.89 percent lives in urban regions of district. In total
3,078,299 people lives in urban areas of which males are 1,593,102 and females
are 1,485,197. Sex Ratio in urban region of Barddhaman district is 932 as per
2011 census data. Similarly child sex ratio in Barddhaman district was 935 in 2011
census. Child population (0-6) in urban region was 320,064 of which males and
females were 165,390 and 154,674. This child population figure of Barddhaman
district is 10.38 % of total urban population. Average literacy rate in Barddhaman
district as per census 2011 is 81.54 % of which males and females are 87.31 %
and 75.34 % literates respectively. In actual number 2,248,931 people are literate
in urban region of which males and females are 1,246,484 and 1,002,447
respectively. As per Barddhaman religion data, 2011, 77.85% of people are Hindu,
20.73% are Muslims, 0.27% are Christians.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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As per Census 2001, demographic status of the nearby village shows that the sex
ratio for general cast population is maximum for Rakshitpur. For the villages
Bamunara, Brindabanpur, Nabagram and Rupgang shows the sex ratio value more
than 950. On the other hand the sex ratio value of Krishnapur village is 840, which
is very much poor. The village like Banskopa, Beharpur, Birudiah and Mobarakganj
shows poor sex ratio value, which is less than 900. The literacy rate in Kanksa
block for male is 78.20% as per Census 2001. For the Female the literacy rate in
Kanksa block is 57.0%.
5.3. Land use planning (breakup along with green belt etc.)
Alaknanda Sponge Iron Limited occupies about 13.57 acre (nearly 54915.842sqm)
of land at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District- Burdwan,
Durgapur –713212 which is falling under Gopalpur Gram Panchayet. Among total
land, the existing freehold land area is 6.59 acres and is occupied with the existing
facilities. For the new project the company has purchased an adjacent land of 6.98
acres.
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5.4. Assessment of Infrastructure Demand (Physical & Social)
Physical & Social Infrastructure
For assessment of socio-economic condition, sample survey for some villages in
the study area was conducted. Selected Parameters were medical facilities,
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electricity, drinking water facility, educational facility, public transport, post and
telegraph office, bank and entertainment facilities etc. Secondary survey has
revealed that drinking water facility is a satisfactory to the local people as all the
villages are having either well or tube well as source of drinking water. Under
medical facilities all the system such as allopathic, homeopathic and ayurvedic
medicines are available at Durgapur or local area at a distance of 2-3 kms. There
is higher educational facility in the area. There is electricity in most of the villages.
This project is providing employment for about 100 people directly and some
indirectly is providing for about 10 which are shopkeepers, mechanic, drivers and
transporter.
5.5. Amenities/Facilities
Greenbelt area may be developed in the surrounding project site.
Power is available at nearby villages.
Drinking water is available by the water tankers from nearby area.
First aid box with all necessary materials will kept all time in the office
building for use as and when required.
6. PROPOSED INFRASTRUCTURE
6.1. Industrial Area (Processing Area)
Developing of Greenbelt area inside the plant and surrounding the area.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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6.2. Resident Area (Non Processing Area)
No residential area is proposed.
6.3. Green Belt
An extensive plantation within the boundary limits of the plant is considered during
expansion project work by planting about 2300 saplings making a two row deep
green belt along the periphery (spacing 2.0 m x 2.0 m) and all along internal roads
iron ore storage areas, ground hoppers and dumps leaving only adequate truck
access. The total land area covered for greenbelt will be 33% of the total area i.e.,
18122.23 sq. mt.
LIT OF BIG TREES FOR PROPOSED PLANTATION IS GIVEN BELOW
No. Common name Scientific name Family
01. Arjun, Arjuna Terminalia arjuna Combretaceae
02. Ashwatha Ficus religiosa Moraceae
03. Akashmoni Acacia moniliformis Mimosaceae
04. Aam Mangifera indica Anacardiaceae
05. Bot Ficus benghalensis Moraceae
06. Chatim Alstonia scholaris Apocynaceae
07. Debdaru Polyalthia longifolia anonaceae
08. Ghoranim Melia azedarch Meliaceae
09. Jhaun Casuarina equisetifolia Casuarinaceae
10. Jarul Lagerstroemia speciosa Lythraceae
11. Karanj Derris indica Fabaceae
12. Krishnachura Caesalpinia pulcherrima Caesalpinaceae
13. Nim Azadirachta indica Meliaceae
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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14. Pakur Ficus infectoria Moraceae
15. Radhachura Delonix regia Caesalpinaceae
16. Tantul, Tentuli Tamarindus indica Caesal pinaceae
17. Sisso Dalbergia sissoo Papilionaceae
18. Sirish Albizia Lebbeck Mimosaceae
6.4. Social Infrastructure
See section 4viii.
6.5. Connectivity (Traffic and transportation Road/Rail/Metro/Water ways
etc)
The area is well connected by road to Durgapur town as well as to other industrial
town like Asansol, Raniganj, Dhanbad and other the adjoining areas by recently
developed Durgapur Expressway (NH-2). The place is connected to railway station
(Easter Railway) and towns by bus, jeeps, taxi and rickshaw. All the civic amenities
like market, bus stand, hospital, school, college, hotel, restaurant etc. all are
available in the town which is about 5-7 km from the site. Distance of important
steel consumption center is given below.
Kolkata – 158 KM Asansol – 42 KM Burdwan – 63 KM
Raniganj – 26 KM Dhandbad – 100 KM Suri – 52 KM
6.6. Drinking Water Management (Source & supply of water)
Water: Water requirement in the plant is for cooling (make-up) and domestic &
other purposes. The required water will be sourced from deep water tube well. The
total water requirement is given below:
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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The water will also be available from Rain Water Harvesting (RWH) system.
6.7. Sewerage System
There will not be any process waste water (or) cooling water blow down from the
SMS as closed circuit cooling system will be adopted. As the steel melting shop
and rolling mill will be operated on the dry process, water is used in the process is
only for the cooling. Closed circuit cooling system will be adopted in cooling of
Billets and TMT Bars/Structural steel/MS Rounds/Strips. Hence there will not be
any waste water generation from process and cooling in the steel plant. Sanitary
waste water will be treated in septic tank followed by soak pit as per PHE norms.
6.8. Industrial Waste Management
In the proposed unit there will be one no. of crusher cum magnetic separator
which will be used for separating metal from furnace slag before its disposal for
land filling or road construction. During operation, Induction furnaces will generate
slag and for this, the slag handling and disposal system will be maintained. In
Induction furnace ore slag will be generated. The dust will be generated from Air
pollution control system which will be utilized in making the fly ash bricks.
Particulars KL/Day
Proposed
Water for cooling (Make up) 9.0
Domestic purposes & other uses 5.5
Total 14.50
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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6.9. Solid waste Management
The solid waste generation from the company after expansion project is proposed
to be disposed off as follows:
Type of Solid
Waste
Estimated
Generation
(MT/Month)
Process of Disposal
Slag from SMS (new
project)
800 Slag will be crushed and after
recovery of iron, the inert material will
be used in road construction and
remaining amount will be planned to
dump in an environmental friendly
manner in a separate area.
Scrap 15 Re-melted in the process.
Mill scale from
rolling
16 Will be recycled in Induction furnace.
6.10. Power Requirement
The existing connected load is 15 MW and the proposed load would be 20 MW in
view of the new project and which will be sourced from DVC.
7. REHABILITATION AND RESETTLEMENT(R&R PLAN)
(Policy to adopted (Central State) in respect of the project affected
person including home oustees, land oustee and landless labour (A brief
outline to be given).
No, R&R Plan is proposed.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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8. PROJECT SCHEDULE AND COST ESTIMATES
8.1. (Likely date of start of construction and likely date of completion (time
schedule for the project to be given)
The Schedule Of Implementation For The Proposed Project Is Given Below
Activity Commencement Completion
Land acquisition and development Acquired and developed land
Civil works, Buildings, Foundation of
Machineries
May 2016 October 2016
Structural fabrication and erection of
technological structures
June 2016 November 2016
Placement of Orders of Plant and Machinery April 2016 July 2016
Erection of Equipments August 2016 January 2017
Trial Run and Commissioning March 2017
Commercial Operation Date April 2017
8.2. Estimated project cost and along with analysis in terms of economic
viability of the project.
The cost of the project and means of finance is proposed to be as follows:
Sl.
No.
Item Cost
(Rs Lacs)
1. Land & Land Development 550.00
2. Factory Building & Other Civil Cost 1549.63
3. Plant & Machinery 4511.11
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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4. Miscellaneous Fixed Assets 717.74
7328.48
5. Contingency Provision for Cost
Escalation
338.92
6. Interest During Construction 300.67
7. Margin for Working Capital 437.50
Total 8405.57
The project cost is reasonable and comparable as per our opinion in the current
date of assessment. We have also made sample checks from the market and also
discussed with the industry experts on similar field.
Means of Finance
The means of finance for the proposed project is as follows:
Particulars Rs lacs
Promoter's Contribution 2605.57
Term Loan 5800.00
Total 8405.57
D/E Ratio 2.23:1
9. ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)
CONCLUSION
The technical feasibility and financial viability of the project has been reviewed
with reference to the new project with reference to overall company as a whole.
Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212
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Our review has been done on the basis of the current scenario and documents
made available to us by the company. We have made the assessment over and
made the changes in assumptions wherever felt required.
Based on our analysis it may be inferred that
a) The project is technically feasible and financially viable.
b) The overall financial liquidity and profitability parameters of the project appeared
to reasonable and satisfactory.
c) The promoters are likely to honour the commitment towards repayment of term
loan barring any unforeseen adversities.
d) We conclude the capital expenditure of the company as a viable option subject
to the weakness and threats associated with a business venture.
The operation of plant has significant positive impact on the socio-economic
environment of the area which helps to sustain the development of this area
including further development of physical infrastructure facilities. In the interest of
mineral development and improve the social conditions of the local habitants this
project should be allowed after considering all the environment aspects.