essar steel india limited

ESSAR STEEL INDIA LIMITED

PRE-FEASIBILITY REPORT OFREPLACEMENT OF

ELECTRIC ARC FURNACES (EAF’s) OFSTEEL MAKING PLANT (SMP-1)

BYBASIC OXYGEN FURNACES (BoF’s)

IN HAZIRA FACILITY OFM/S. ESSAR STEEL INDIA LTD

SURAT, GUJARAT STATE

ESSAR PROJECTS (INDIA) LIMITEDENGINEERING & PROJECT MANAGEMENT

DOC NO: 2715-H000-Z00000-0001-0120-0002 R0 November 2014

PRE-FEASIBILITY REPORT OF

REPLACEMENT OF ELECTRIC ARC FURNACES(EAF’s) OF STEEL MAKING PLANT (SMP-1) BYBASIC OXYGEN FURNACES (BOF’s) IN HAZIRA

FACILITY OF ESSAR STEEL INDIA LTDESSAR STEEL INDIA LTD

ESSAR PROJECTS (INDIA)LIMITED

ENGINEERING & PROJECTMANAGEMENT

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CONTENTS1. EXECUTIVE SUMMARY ........................................................................................................ 32. INTRODUCTION .................................................................................................................. 12

2.1 Identification of the project and project proponent ............................................................. 122.2 Brief description of the nature of the project ...................................................................... 132.3 Need for the project........................................................................................................... 132.4 Demand-Supply gap.......................................................................................................... 132.5 Employment Generation.................................................................................................... 13

3. PROJECT DESCRIPTION.................................................................................................... 133.1 Type of project and interlinked/ interdependent projects.................................................... 143.2 Location map..................................................................................................................... 143.3 Details of site considerations............................................................................................. 153.4 Size/Magnitude of Operation ............................................................................................. 153.5 Project description with project details............................................................................... 153.6 Raw materials and linkages............................................................................................... 253.7 Resource optimization/Recycling and reuse...................................................................... 263.8 Availability of water, its source, energy/power requirement and source............................. 263.9 Quantity of waste generation and scheme for management/disposal ................................ 273.10 Information of EIA purpose.................................................................................................. 28

4. SITE ANALYSIS................................................................................................................... 284.1 Connectivity....................................................................................................................... 284.2 Land form, land use and land ownership ........................................................................... 294.3 Topography....................................................................................................................... 294.4 Existing land use pattern ................................................................................................... 294.5 Existing infrastructure........................................................................................................ 304.6 Soil classification............................................................................................................... 304.7 Climatic data ..................................................................................................................... 304.8 Social infrastructure available............................................................................................ 32

5. PLANNING BRIEF ............................................................................................................... 325.1 Planning Concept.............................................................................................................. 325.2 Population Projection ........................................................................................................ 335.3 Land Use planning (break up along with green belt, ect) ................................................... 335.4 Assessment of Infrastructure Demand (Physical and social) ............................................. 345.5 Amenities/facilities............................................................................................................. 34






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6. PROPOSED INFRASTRUCTURE........................................................................................ 346.1 Industrial area ................................................................................................................... 346.2 Residential area ................................................................................................................ 346.3 Green belt ......................................................................................................................... 346.4 Social infrastructure........................................................................................................... 356.5 Connectivity....................................................................................................................... 356.6 Drinking water management.............................................................................................. 356.7 Sewerage system.............................................................................................................. 356.8 Industrial & solid waste management ................................................................................ 356.9 Power requirement & Source ............................................................................................ 35

7. PROJECT SCHEDULE AND COST ESTIMATES................................................................ 357.1 Project Schedule ............................................................................................................... 357.2 Estimated Project Cost...................................................................................................... 36

8. ANALYSIS OF PROPOSAL ................................................................................................. 38

LIST OF EXHIBITS

Exhibit Description Drawing number

1 Location Plan of BOF 2715-H000-Z00000-0007-0700-0002

2 Process Flow Diagram of BOF 2715-H000-A20100-0020-2053-0002






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1. EXECUTIVE SUMMARY

Essar Steel India Ltd (ESTIL) is one of the group company of the diversified multinational conglomerateEssar Group spanning in the manufacturing and service sectors of Steel, Energy, Power,Telecommunications, Shipping & Logistics and Projects.

The company (Essar Steel India Ltd.) operates a large single-location well-planned, sophisticated andenvironment-friendly integrated steel complex in the “Hazira Notified Area” at a distance of 27 km(Surat-Hazira road) from the Surat City in the State of Gujarat, India. The steel complex is supported bycomprehensive Steel, Energy, Power, infrastructure setup including a captive port, power plant, limeplant, oxygen plant, wide road network, multiple stock yard, etc. The company is also upholdingwidespread social infrastructure facilities within the premises.

ESTIL has the facility to produce 9.6 MTPA plain carbon steel slabs/coils from its existing two differentsteel making facility viz. SMP-1 and SMP-2. DR module-BF/Corex-DC EAF and DR module-BF/Corex-CONARC represent two several routes for SMP-1 and SMP-2 respectively.

DRI contribute at about 70% metallic towards steelmaking and rest of the feed material for steelfurnace comes by hot metal route. In current scenario, DRI production becomes an economicallyunviable option due to non-availability of natural gas and substantial increase in its price coupledwith high cost of DR Pellets. As a result, it is decided to phase out all DR modules except modulesV & VI to utilize the Corex gas as process needs.

Hence, it is intended to install Blast Furnace Complex to produce additional 3.0 MTPA hot metal tosupplement almost equivalent amount of solid metallic expected from modules I-IV.

As far as hot metal usage in steelmaking is concerned, it is foreseen from the past operationalexperience and recent technological development that hot metal in DC EAF will not be able to givethroughput as it is conceived from basic oxygen furnace. Furthermore, DC EAF requiresmodification along with its supportive fume extraction system to enable maximum hot metalcharging. Nevertheless to say that hot metal charging in EAF is neither energetically beneficial noreven attractive option to maximize hot metal charging into the furnace & throughput from thefurnace.

Hence, ESTIL has decided to reconfigure entire SMP-1 complex with oxygen blown steelmakingby installing basic oxygen furnace (BOF).

Keeping in view of the reconfiguration of SMP-1, following assets are envisaged further to thesystem to maintain same volume of steel.






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Plant Configuration Annual production capacity

Steelmaking

Basic oxygen furnace 3 x 155 T 4.6 MTPA liquid steel

De-sulphurisation plant 155T twin station 3.5 MTPA clean hot metal

Hot metal granulation unit 1X 300 TPH NA

Ladle Furnace 1x 150 T NA

The brief description of above mentioned facilities are depicted under subsequent topics.

PROJECT DESCRIPTION

All the proposed units are of brownfield in nature. The major technological features and necessaryrequirements for all the upcoming units are elaborated in subsequent section.

A. Basic oxygen furnace (BOF)

At present, four (4) Nos. of DC EAF are used to produce 4.6 Mtpa crude steel followed by continuouscasting through 3 Nos. of conventional slab caster.

In proposed reconfiguration three (3) Nos. of BOF are envisaged in place of EAF’s area along withassociated facilities.

Keeping in view of the existing EAF's size, the new basic oxygen furnace (BOF) has been envisagedwith 155 t nominal capacity to utilize common facilities at the maximum extent. The three BOF’s willoperate simultaneously to derive the maximum production potential of BOF. It is proposed to design theBOF to produce average 32 heats per day per furnace from available hot metal on daily basis.

In order to improve quality of steel, hot metal shall be pretreated in HMDU before charging into BOF asand when required.

One hot metal granulation unit is proposed to cater the hot metal granulation during unscheduled shutdown of SMP-1 without interfering rated production of blast furnace.

All latest technologies associated with BOF for efficient operation have also been considered. Theseare as follows:

Scrap handling facilities Hot metal handling facilities Flux & ferro alloy handling facilities BOF Vessel system Convertor tilt drive with emergency tilting device Slag handling system Oxygen lance system with slag splashing device Lance maintenance platform Bottom stirring system Measurement system (Laboratory equipment)






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Liquid steel handling equipment Waste gas cooling system Waste gas cleaning system Gas recovery station (Change over station) Gas storage system Gas export station Secondary emission control systems Shop EOT Cranes

Major parameters considered for the operation of the BOF are indicated below:

Description Units Values

Liquid Steel production t/yr 4,310,000

No. of converters Nos. 3 x 155 t(3/3 operation)

Nominal / Maximum heat size intended to process. t 155/160Average heats/day/BOF No. 32-36Operating days/year d/yr. 290Tap to Tap time min 40-45 approx.Hot metal % 80-90Scrap % 1-10%HBI % 1-10%Slag rate kg/tls 120Flux kg/tls 80Oxygen Nm3/tls 54

NOTE: Here, BOF Capacity stated as 4.31 MMTPA. This capacity is mainly due to current prevailing

Market scenario and hence, Caster Capacity. BOF Plant Capacity is still 4.6 MMTPA.

The annual inputs to BOF to produce 4.31 MTPA of liquid steel are indicated below:

Description Units Values

Hot metal t 4,167,125Scrap t 309,575HBI t 373,297Flux (Calcined Lime & Dolomite) t 344,740

An average annual yield from BOF is given below.

Description Units Parameter

Liquid steel t /year 4,310,000BOF Slag t /year 517,100BOF dust & sludge t /year 64,600Steam t /year 409,400BOF gas Nm3/year 487 x 106

Waste water m3/year 3,53,280






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Hot metal desulphurization unit

Operating and design features

Hot metal desulphurization unit having twin stations system has been envisaged to reduce the sulphurlevel of the hot metal before charging into furnace. Each station is having separate injection system,ladle transfer car, deslagging equipment & other facilities. Only the material storage facilities is commonfor the both the station. Desulphurization will be carried out using lime and Magnesium (Mg) containingagents injected into the hot metal with the help of nitrogen gas as a carrier gas. Depending upon therequirement of desulphurization, cycle time in desulphurization unit will be 35 to 40 min.After desulphurization, the slag will be raked off with the help of slag raking machine and slag will bedumped in to slag pot.

Hot metal ladles before & after treatment will be handled by EOT cranes.

The board technical data parameter for Desulphurization unit as below.Sl.no. parameter Unit Value/features

1. Nominal Heat weight t 155

2. No. of stations No 2

3. Injection Lance system (Co-injection) Set2 Independent lance –(One working & one

stand by)4. Treatment cycle per heat min. 35-405. Agent for desulphurisation - Mg & lime6. Minimum free board in ladle mm 4007. Injection media - Nitrogen gas8. Temperature of HM at BF tapping C 1400-14509. Temperature at DS C 1350-1400

10. Temperature drop of HM after DS Unitincluding deslagging C Max. 30

11. S-level before treatment % 0.05-0.0710. S-level after treatment % ≤ 0.00512. Treatment Capacity Ladles/day 3613. Operation Days Days 32014. Capacity of Unit MTPA 3.5

Major components of Hot Metal Desulphurization unit

Conveying system of Materials

Storage tank

Dispensers

Lance and Lance hoisting Device

Ladle Transfer Car

Slag Pot Transfer Car

De-slagging equipment






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Dust collecting equipment

Temperature measuring and Sampling device

Lance maintenance area

Electrical and Instrumentation facility

Level II automation

Hot metal granulation unit


The granulation unit is designed for granulation of large batches of crude iron at a rated capacity of 5t/minute.

Minimum metal temperature shall be 100°C above liquidus temperature.

The hot metal is transferred in ordinary transfer ladle to the granulation plant by overhead crane. The metal is

poured over the lip of the ladle into a tundish. The tundish is placed on a stand which is kept on top of the

granulation tank.

The granulation rate is mainly controlled by nozzle diameter and ferrostatic pressure of the tundish. The metal

level is controlled by a laser-measuring device placed on a stand above the tundish. The signal from the laser

measurement is used to control the auxiliary hook speed of the overhead crane.

An emergency overflow launder will lead the hot metal to an emergency ladle by the side of the tank if tundish

is overfilled for some reason.

The stream of metal emerging from the nozzle strikes the refractory spray head and forms droplets, which fall

into the granulation tank underneath where the granules are solidified and cooled in the circulating cooling

water.

The granules are discharged from the tank by an air/water ejector up to a vibrating dewatering screen. There

is one discharge pipe with bends in wear resistance material leading to the dewatering screen.

From the dewatering screen the granules passes a vibration feeder onto a belt conveyor to the storage area.

The process cooling water for the granulation unit uses a recirculation system. The water from the dewateringscreen runs to a settling tank equipped with a screw feeder which discharge the fines continuously. Theoverflow water of the granulation tank also passes through the hot well from which it is pumped to the coolingtowers.

The system shall be designed in such a way that no fumes shall be released of late from the building.

Operating parameter:Granulation Capacity: 300 t/h

Hot metal temperature: 1350 – 1400 °C






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Major components of Hot metal granulation unit

Hot metal ladle tilter

Granulation tundish

Emergency launder

Preheating burner

Spray head

Granulation Tank

Discharge system

Dewatering equipment

Main belt conveyor

Stands, plate work and platforms

Cooling water system

Pumps

Electrical equipment

Instrumentation and control system

Maintenance facilities for granulation unitsWater Requirement

The total water requirement is summarized in table.

Units BOF

Raw Water (m3/h) 496Domestic water m3/h) 6.5

During construction phase around 10 m3/day of drinking water will be made available for around 500workers from existing potable water plant.

Power requirementThe total power requirement for the upcoming units is summarized in table below.

Units BOF

Powerrequirement 26.5 MW

Land Requirement

Total land requirement for plant is about 9.0 (nine) Ha. The additional land required for setting upfacilities for BOF has been earmarked at different places within the steel complex.






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Employment Generation

The proposed project will provide employment to around 788 persons, including direct employment toaround 488 persons and indirect employment to around 300 people during operational phase.

During construction phase around 500 workers will be deployed at site for around 34 months.

Environment Management

The table below captures all the wastes generated from each unit and suggested remedial measures tocomply with the applicable statutory requirements.

Solid waste

Unit Type of wastes Quantity Point ofgeneration Remedy

BOF BOF Slag 517,100 TPA Basic oxygenfurnace

Will be used for land fillingand road construction

BOF sludge & Fines 64,600 Gas cleaning &dedusting plant

Will be used as inputmaterial in sinter plant

Liquid waste

Unit Type of wastes Quantity Point ofgeneration Remedy

BasicOxygenFurnace

Industrial Waste water 46 m3/hr BOF Shop Will be used in coolingBOF Slag.

BasicOxygenFurnace

Domestic waste water 6.5 m3/hr BOF ShopShall be treated in theExisting Sewagetreatment plant

Air emission

Sr.No. Area of installation Number of

stacksStackheight

(m)

Diameter of stack(m)

Flow rateNm3/h, each

stack

E BOF

1 Flare stack 3 80 2.6 2,70,000

2 Clean gas stack at fume & dustextraction system 5 45 9.2

14,40,000






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Noise pollution

Unit Point of generation Outlet parameters

BOF Rotating equipment 85 - 90 db from 1.5 m away from source will bemaintained

Hazardous waste generation

Description of Hazardous Waste Quantity Management & Disposal

Used Oil (kl/yr) 70 Collection, storage, transportation and disposal byselling to registered recyclers.

Oily waste (t/a) 1 Collection, storage, transportation and disposal toregistered recyclers.

All the wastes generated from various units will be collected and treated according to the nature of thewaste. All the requirements with regard to fuel, flue gas, effluents and other emissions will beconsidered at the design / equipment selection stage for all the proposed units.

The environmental standards prescribed for particular units shall be complied during design stage.

Resource optimization/Recycling and reuse

Basic Oxygen Furnace

All the wastes generated from the BOF will be collected and treated according to the nature of thewaste. Flue dust generated in the process will be reused in Sinter plant.

A gas cleaning plant will be provided to clean BOF gas.

Excess BOF gas will be used as substitute for natural gas.

The waste water generated from BOF operations will be reused for BOF slag cooling.

Iron bearing waste material generated from BOF-will be utilized in sinter plant as inputmaterial for sintering.

BOF slag after cooling will be transported offsite for utilisation in land filling and road construction.

Green belt development

Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh squaremeter area (84 ha). Besides, Green zones are developed within the complex in around 75 ha of area.Thus total Green cover developed at Essar Complex, Hazira is 159 ha which is 20 % of total area ofcomplex including township.






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At the time of environmental appraisal of various ECs of Essar Steel, Hazira, it transpired, in view ofspace constraint that Essar has to develop GB keeping in view the entire Essar complex. Thus ESTILagreed to develop a green belt in around 22 % of total area of Essar Complex at Hazira. Green Beltdevelopment is a continuous activity and it is going on where the space is cleared after the completionof project work.

Moreover, we are in the process of carrying out 1000 Ha Mangrove plantations in 10 years time. Thisactivity was started in the year 2008 in consultation with GEC. Till March 2014, total 700 Ha mangroveplantations have been completed. Total 17,50,000 samplings have been planted at coastal areas ofSurat and Bharuch district.

PROJECT SCHEDULE AND COST ESTIMATE

The project is scheduled to be completed within 34 months from the starting date i.e. from the date ofreceiving all the statutory clearances for starting the project.

Project Cost in Crores

RECOMMENDATIONSThe proposed reconfiguration will help to improve public infrastructure and community welfare andcreate number of jobs for the locals during construction and operational phase. Considering all thefinancial and social benefits to the local population, it is recommended to reconfigure all the units withinthe steel plant premises at notified Hazira Industrial Area, Hazira district, Surat Gujarat.

Sr.No. Item BOF

A EPC Cost

1 Engineering 772 Procurement 8653 Construction 541

Total A 1483B Owner's Cost

1 Preliminary & Pre-operative Expenses 174

2 Contingencies 91

3 Interest DuringConstruction (IDC) 79

4 Total B 344

Incl. EMS Cost (order ofInvestment) 334

Total Project Cost (A+B) 1827






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2. INTRODUCTION

Essar Steel India Ltd (ESTIL) owns and operates an integrated well-planned, sophisticated andenvironment-friendly steel complex at a distance of 27 km (Surat-Hazira road) from the Surat City in theState of Gujarat. The Essar steel complex is the largest single-location flat steel producer in India withan annual production capacity of 10 million tons and supported by a complete infrastructure setup,including a captive port, power plant, lime plant and oxygen plant. The plant's downstream facilitiesinclude a 1.5 MTPA plate mill, 0.6 MTPA pipe mills and 1.2 MTPA cold rolling complexes. Essar SteelIndia Ltd. has the statutory environment clearances issued by Ministry of Environment & Forests, Govt.of India and ESTIL is a certified ISO: 9001:2000, IS 9002 by TUV company, ISO 140001 as well asIndia Chiller Energy Efficiency Project (ICEEP) Protocol compliant. Now the company has decided toreconfigure the Hazira facility with blast furnace, sinter plant and coke oven plant along with setting up anew air separation unit within the existing premises, an environmental clearance application for which isalready made.

In addition to install the new blast furnace and associated facilities, ESTIL has decided to reconfigurethe Steel Making Plant -1 of the Hazira facility by replacement of Electric arc furnaces with Basicoxygen furnaces.

The proposed reconfiguration project, which is within the existing steel plant, located in the industrialbelt at Hazira will be executed by Essar Steel India Ltd (ESTIL).

Ministry has already accorded environmental clearances for the existing integrated steel plant vide letternumber

J-11011/4/92-IA-II (I) Dated. 23.07.1992, J-11011/45/04IA-II(I) Dated 07.11.2005, J-11011/74-III/2006-IA.II(I) Dated 29.05.2008, J-11011/327-I/2006-IA.II(I) Dated 29.05.2008 , 11 – 65/2005-IA-IIIDated.18.09.20006, J – 13011/4/90/2006-IA-II(T) Dated.10.08.2009,J–11011/714–A/2008 – IA.II(I)Dated.05.07.2010, J-11011/313/2009-IA II (I) dated 28.07.2010, J-11011/74-II/2006 – IA.II(I)Dated.29.05.2008.

The following units are considered under aforesaid environmental clearances.

Coke Oven: 1.22MTPA

Iron making unit: 1 Blast furnace, 2 Corex Units, 6 DRI modules, 1 sinter plant

Steel Making Unit: 4.6 MTPA liquid steel through EAF and 5 MTPA liquid steel through Conarc alongwith Thin and Thick slab casters.

Hot Rolling mills: 3.6 MTPA hot strip mill, 3.5 MTPA compact strip production, Cold rolling mills: 1.2MTPA CRM, pickling line, cold skin pass mill, continuous galvanizing lines.

Essar is now envisaging following additional facilities as a replacement of DRI steel making to Hot MetalSteel making at Hazira complex with no increase in the capacity of steel making and downstreamfacilities.

Sr. No. Particulars Capacity1 Basic Oxygen Furnace 4.31 MTPA

2.1 Identification of the project and project proponent

Essar Group, a diversified multinational conglomerate is having operations and investments in India,Canada, USA, Africa, the Middle East, and South East Asia with the revenue of more than 39 billionUSD and 73,000 employees. Privately owned and professionally managed, the Essar Group has an






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excellent track record, having succeeded in the capital intensive and competitive manufacturing sectors.With a focused approach on each business through integration, incorporation of state-of-the-arttechnology and innovative in-house research, the Essar Group Companies have become leadingplayers in each of their businesses.

2.2 Brief description of the nature of the project

All the proposed units of the project are New to be integrated with existing units. It is also proposed todecommission the existing EAF 1 to 4. Individual units are described in detail in subsequent chapters.

2.3 Need for the project

Availability and cost of natural gas is a major concern for industrial use and hence gas based DRIproduction is no more a viable option at present for steel makers. The proposed project is intended toproduce liquid steel through pneumatic steel making route in place of EAF steel making. A new blastfurnace is planned to meet the hot metal requirement of proposed reconfiguration in Steel making plant-1 of Essar Steel Hazira facility.

A pneumatic steel making unit of about 4.3 MTPA is proposed by phasing out EAF 1 to 4.

Demand-Supply gap

Output from the proposed process units will be consumed in existing steel making facilities asreplacement of DRI. Since there is no additional saleable finished product envisaged, fresh demandsupply gap has not been explored for the same.

2.4 Employment Generation

The breakup of the category wise manpower for entire project is given in table below:

CategoryBOF

Managerial Staff 200

Skilled / Semi Skilled – On Contract 228

Unskilled / Labour – On contract 60

Total Direct employment 488

Indirect Employment 300

Total employment 788

Additionally during construction phase around 500 workers will be deployed at site foraround 34 months.

3. PROJECT DESCRIPTION

Essar Steel India Limited (ESTIL) is planning to set up the following facilities to replace DRI based steelmaking with Hot Metal based steel making.






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3.1 Type of project and interlinked/ interdependent projects

Basic Oxygen Furnace It is envisaged for replacing DRI based EAF steel making by Hot metal basedBOF steel making.

3.2 Location map

The location of the plant of Essar Steel Hazira is near Surat, Gujarat.

FIGURE 3.1:LOCATION MAP

Refer attachment number 2715-H000-Z00000-0007-0700-0002 for layout showing each unit and its co-

ordinates.






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3.3 Details of site considerations

The proposed new facilities shall be housed in the existing Hazira complex. The locations/sites of thefacilities have been identified and indicated in the proposed location of reconfiguration units of steelcomplex as per layout no 2175-H000-Z00000-0007-0700-0002 attached as annexure.

3.4 Size/Magnitude of Operation

The basic oxygen furnace (3 nos.) will have capacity of 155 t/heat producing 4.31 MTPA of liquid steel.

3.5 Project description with project details

In proposed reconfiguration a new shop with three (3) Nos. of BOF along with associated facilities areenvisaged in place of 4 Nos. of EAF’s.

Keeping in view of the existing EAF's size, the new basic oxygen furnace (BOF) has been envisagedwith 155 t nominal capacity to utilize common facilities at the maximum extent. The three BOF’s willoperate simultaneously to derive the maximum production potential of BOF. It is proposed to designthe BOF to produce average 32 heats per day per furnace from available hot metal on daily basis.

Features of proposed BOF shop include hot metal, slag & scrap handling system, hot metaldesulphurization unit, hot metal granulation unit, BOF Vessel system, oxygen lance system and BOFgas cleaning, cooling & recovery system.

In order to improve quality of steel, hot metal shall be pretreated in Hot metal desulphurization unit(HMDU) before charging into BOF as and when required.

One hot metal granulation unit is proposed to cater the hot metal granulation during unscheduled shutdown of SMP-1 without interfering rated production of blast furnace.

Refer attachment Exhibit- 2 for process flow diagrams for Basic Oxygen Furnace.

The Unit wise project description is as follows

3.5.1 Basic Oxygen Furnace

Basic oxygen furnace about 3 X 155 t heat size is proposed to be installed.

Major design features of BOF

The design basis of new basic oxygen furnace is given below.

Description Units ValuesLiquid Steel production t/yr 4,310,000

No. of converters Nos. 3 x 155 t(3/3 operation)

Nominal / Maximum heat size intended to process. t 155/160Average heats/day/BOF No. 32-36Operating days/year d/yr. 290 minimumTap to Tap time min 40-45 approx.






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Description Units ValuesLining life with slag splashing. No of heats 10,000 approx.Hot metal % 80-90Scrap % 1-10%HBI % 1-10%Slag rate kg/tls 120

Consumption of input materials

The typical input material consumption and the annual consumption for production of 4.3 MTPA of liquidsteel, will be as given below.

Annual raw material consumption for 3.5 MTPA Desulphurization unit

Raw materials Consumption (kg/ton of HotMetal) Consumption (t/yr)

Passivated magnesium powder 0.6 2,586

Lime Powder 5 21,550

Annual raw material consumption for BOF

Raw materials Consumption (kg/ton ofliquid steel) Consumption (t/yr)

Hot metal 967 4,167,125

Scrap 72 309,575HBI 87 373,297Flux 80 344,740

Fuel, Electrical energy and Utility Consumption

Expected levels of consumptions of fuel electrical energy and utilities for Desulphurization and BOF areas follows:

Description Specific consumption(per ton of liquid steel)

Annual consumption

Oxygen 54 Nm3 232.7 x 106 tNitrogen 30 Nm3 129.3 x 106 kWh

Argon 1.2 Nm3 5.2 x 106 m3

Compressed air 20 Nm3 86.2 x 106 m3

BOF gas 2.5 Nm3 10.8 x 106 Nm3

Make up water 0.8 m3 3.4 X 106 m3

Electrical energy 54 Kwh 232.7 Million Kwh






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Plant waste, slag and gas generation

Expected levels of generations of plant waste materials, slag and gas are as follows:

Description Generation per ton of liquidsteel

Generation per year

BOF gas 113 Nm3 487 Million Nm3

BOF Dust and sludge 15 kg 64,600 tonBOF Slag 120 kg 517,100 tonSteam 95 kg 409,400 tonWaste water 0.082 m3 353,280 m3

Quality of Raw Materials

The typical raw material analysis has been given below in the tables:- Composition of Hot metal

- Composition of Scrap

- Composition of HBI

Product Quality UoM RangeTotal Fe in Product % 84 – 89MFe in Product % 78 - 83.0Metallization % 92 - 93.5

Product UoM RangeC % 3.5 - 4.4Si % 0.4 - 0.5Mn % 0.4 - 1.0P % 0.1 - 0.15S % 0.02- 0.04

Product UoM InternalFe % 94C % 0.05

Mn % 1P % 0.04S % 0.05Si % 0.1Cu % 0.03 maxNi % 0.04 maxCr % 0.04 maxMo % 0.03Sn % 0.015






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Product Quality UoM RangeFeO in Product % 7.78 – 9Carbon % 1.5 - 1.90S % 0.001 - 0.005SiO2 % 3 – 6Al2O3 % 0.8 - 2.5CaO % 1.1 - 1.3MgO % 0.22 - 0.24P % 0.04 - 0.07Others % 0.06-0.08SiO2+Al2O3 % 5.5 - 9.0Total Gangue % 6.5 - 10.5

- Composition of Flux for BOF

Product quality UoM Lime DolimeCaO % 92.0 51.0MgO % 2.5 32.0SiO2 % 0.6 5.0R2O3 % 2.5 3.0LOI % 4.0 6.0S %

Size Specification 10 - 50 mm 10 - 50 mm

- Composition of lime powder for Hot metal desulphurization unit

Product UoM RangeCaO % 92

S % 0.02LOI % 2Size % 100 % (> 0.05 to < 1.0 mm)

Natural angle of rest degree 45

- Composition of magnesium powder for Hot metal desulphurization unit

Product UoM RangeActive magnesium % ≥90

Coating % ≤10

Size mm 0.9






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Quality of Products of BOF

- Composition of Liquid Steel

C,% P, % Mn, % O2 ppm Temp ° C

0.025 - 0.04 0.005 - 0.01 0.01-0.03 500 – 1000 1600-1650

- Composition of Slag

SiO2,% CaO, % FeO, % MgO, % Basicity12-14 42-48 18-22 8-12 3.5

- Composition of BOF Gas

Parameters Unit ValueVolume Nm³/thm 110-115

Temperature deg C 60-80CO % 60.0 – 67.0

CO2 % 24.0 – 26.0N2 % 15.0 – 20.0

Calorific value Kcal/Nm³ 1650 – 1800

Basic oxygen furnace facilities

Various units under BOF with major facilities are indicated below.

Each converter shall be equipped with integral bottom with facilities for bottom stirring by inert gas.

Each converter shall be complete with but not limited to vessel shell, trunnion ring, trunnion pins, vessel

suspension, trunnion bearings, vessel pedestals, slag shields, dog house around the converter, tilt drive

system including emergency drive, electrical equipment, instrumentation and control.

Hot metal Handling system:Hot metal will be delivered to the BOF shop via open charging ladle 155 t. The ladle will be then be

picked up by EOT crane and placed on the transfer cars at Hot metal desulphurization unit if required

for reduction of excess sulphur. After desulphurization hot metal ladle will transfer to BOF for charging

via EOT Cranes.

Scrap handling system:

Scrap and cold pig iron will be loaded in the scrap charging boxes placed on the scrap car positioned

over the scrap weighbridge by the overhead magnet crane in the scrap bay. Scrap boxes will be

brought to the charging bay by the scrap box car. Scrap will be charged into the converters by means of

crane.






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Hot metal desulphurization unit:

Hot metal desulphurisation stations have been envisaged to reduce the sulphur level of the hot metal

before charging into BOF. Desulphurisation will be carried out using calcium carbide and Mg containing

agents which are injected into the hot metal with the help of nitrogen gas. Depending upon the

requirement of desulphurisation, cycle time in desulphurisation unit will be 35 to 40 min.

Flux and Ferro alloying addition:Lime, Calcined Dolomite, Lime stone, Nut Coke etc. will be received in overhead bunkers in the

converter bay from storage silos located outside the BOF shop by a conveyor system. Fluxes will be

charged into the converter from both sides through a system of weigh hoppers, charge holding bunkers

and chutes. Predetermined quantities of ferroalloys from the storage bins will be delivered into steel

ladle through a system of weigh-hoppers and chutes.

Vessel shell

The vessel shell shall comprise a conical top with lipring segment, a cylindrical centre and a conical

lower section and dished bottom section made of non-aging steel. The tap hole socket shall be welded

on the conical top section. The tap hole cover shall be fixed to the flange of tap hole socket by pins &

wedges.

Convertor tilt drive with emergency tilting device

The tilting of each converter shall be accomplished by four (4) drive system. The rotation of the

converter shall be 3600 on either direction and the speed of rotation shall be variable between 0.1 rpm

to 1.0 rpm or more. The capacity of the tilt drive system shall be sufficient to tilt the converter at 1.0 rpm

minimum under all operating conditions with all the motors in service.

The tilting gear drive have complete with base frame, couplings, bearings, reduction gear, lubrication

system, brakes etc. In case of power failure, the brakes shall set and hold the converter in position at

which power failure occurred. Emergency release system included for the brakes as a safety device for

bringing the converter to the upright position in the event of power failure. The converter is balanced in

such a way that under all conditions the converter shall come back to the upright position by gravity.

The drive are backlash free and easy maintainable.

Slag Handling system

The slag will be poured out from BOF converter into slag pots placed on self-propelled transfer cars and

transported to the slag yard. Hot slag will be dumped into the pits and allowed to cool. Cold slag from

the pit will be removed for further processing for recovery of scrap. The job of processing of cold slag

for recovery of scrap will be carried out by an outside agency.

Oxygen lance system with slag splashing deviceEach converter shall be provided with an independent oxygen lance system to meet the following

operational requirement.






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- Supply of oxygen at the rate and pressure required for blowing the heat in 14-16 minutes.

Oxygen flow rate of about 600 Nm3/min has been envisaged.

- Quick exchange of the operating lance with the stand by lance in case of failure of the operating

lance.

- Quick installation/dismantling of lance into/from the lance carriage

- Use of blowing lance for preheating the newly relined converter and for slag splashing the

converter as and when required.

Each converter shall be provided with an independent oxygen lance system with two identical water

cooled multi hole oxygen lances. The lances shall remain mounted in position ready for operation with

the oxygen and water hoses connected. Each lance system shall include but not limited to the following:

- Lance carriage with guide frames

- Lance hoist including rope drive

- Lance carrier

- Four (4) oxygen lances

- Two (2) oxygen hoses and four (4) water hoses

- Valve stations and pipework.

- Closed circuit pressurised lance-cooling system with heat exchanger

- Emergency lance lifting

Lance Deskulling and Retipping FacilityIn the lance cleaning stand the slag and metal skull can be removed from O2 lances. Slag and metal

skulls are falling into container which is placed below the cleaning stand on the floor. Spare lances are

suspended in the lance station.

Transport of damaged / new lances between lance installation and lance station will be by crane.

Bottom stirring system

The bottom stirring system consists of a set of porous plugs, hoses amd pipe work from the porous

plugs to the trunnion ring and through the trunnion drive and trunnion pin, valve station , control

instruments and auxiliary equipment. Through the porous plugs, nitrogen or argon can be blown in at

the bottom of the vessel.

Measurement system (Laboratory equipment)

During every production stage in steel refining it is important to control the oxygen & other content of

liquid steel and temperature of liquid steel. Therefore measurement during the process and at the end is

necessary.

Liquid steel handling equipment

Liquid steel handling starting from tapping the heat from the converter into steel teeming ladle placed on

transfer car. The steel transfer car track shall start from converter charging aisle and shall terminate in






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the ladle distribution aisle. The track from converter charging aisle shall be extended upto slag aisle for

transportation of slag pot. The wheel centres of the steel transfer cars and the slag transfer cars shall

be identical enabling transportation of both the cars on the same track.

Waste gas cooling system

The BOF waste gas cleaning system is designed as a dry type cleaning system for high efficient

cleaning and further cooling of the BOF gas. The system is designed for subsequent convertor gas

recovery. This type of cleaning system is a technical solution to comply with today’s most stringent

environment requirements.

The gas cleaning system is only in operation with the full capacity during blowing time. After passing

through the cooling stack within that the gas temperature is reduced, the BOF gas enters the adjacent

gas conditioning tower with a temperature of max 1000° C. The gas is heavily laden with dust particles

from the convertor process, mainly with iron, iron oxide but also other particles from slag, flux charges

and hot metal. The range of particles sizes vary form approx. 0.1 micron up to some millimetres.

In the GCT connected gas tight via a special designed high temperature compensator, the BOF gas is

being cooled and conditioned by evaporation of injected water. Coarse dust particles are separated in

dry state and transported to coarse dust silo. The conditioned BOF gas exists the GCT at about 200° C.

By means of horizontal dry type electrostatic precipitator the remaining fire dust load is further reduced

to the requested clean gas dust content. The dust is also collected in dry state and transported to the

fine dust silo. The gas is transported through the gas cleaning system by means of an induced draft fan.

Depending on the actual CO content a switch over station will direct the gas either to the flare stack or

with sufficient CO content to the gas holder.

A subsequent gas cooler installed in the gas dust to the Gas holder further down the BOF gas to

temperatures in the range of 60-70° C appropriate for the gas holder operation. The gas will then be

fully saturated.

The system is capable of reducing the dust content of the clean gas down to ≤ 10 mg/Nm3 (Dry).

Gas recovery station (Change over station)

For switching over the gas from flare stack operation to gas recovery operation and vice versa, a switch

over station is used. This gas switch over station mainly consists of two bell shaped valves which are

adjusted hydraulically and separately from each other. By means of this station the system can be

switched over without any pressure surge. The signal for switching over the system is given by PLC

based on interlocks and process variables. The signal for switching over the system is given by the CO

and O2-analysis.

Secondary emission control systemThe secondary fume collection system will be designed to collect the fumes from the following emission

sources.

- Desulphurization station






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- Convertor charging, blowing (secondary fumes only) and tapping

- Flux and alloy charging system at BOF convertors

- Ladle furnaces

The fumes are collected in specially designed hoods, arranged as close as possible at the emission

source. In the suction ducts of each hood there are motor operated damper installed for appropriate

on/off operation and intermediate positions.

The fumes are the n guided to a gas mixer where the gases are homogeneously mixed and

subsequently to a bag filter system where the dusty gas get filtered and released to the atmosphere by

self-supported chimney at a certain height at 20 mg/Nm3.

Cranes and hoists

The plant shall be provided with adequate cranes and hoists for easy maintenance of plant andequipment.

Hot metal desulphurization unit


Hot metal desulphurization unit having twin stations system has been envisaged to reduce the sulphur

level of the hot metal before charging into furnace. Each station is having separate injection system,

ladle transfer car, deslagging equipment & other facilities. Only the material storage facilities is common

for the both the station. Desulphurization will be carried out using lime and Magnesium (Mg) containing

agents injected into the hot metal with the help of nitrogen gas as a carrier gas. Depending upon the

requirement of desulphurization, cycle time in desulphurization unit will be 35 to 40 min.

After desulphurization, the slag will be raked off with the help of slag raking machine and slag will be

dumped in to slag pot.

Hot metal ladles before & after treatment will be handled by EOT cranes.

The board technical data parameter for Desulphurization unit as below.

Sl.no. parameter Unit Value/features

1. Nominal Heat weight t 155

2. No. of stations No 2

3. Injection Lance system (Co-injection) Set2 Independent lance –(One working & one

stand by)4. Treatment cycle per heat min. 35-405. Agent for desulphurisation - Mg & lime6. Minimum free board in ladle mm 4007. Injection media - Nitrogen gas8. Temperature of HM at BF tapping C 1400-1450






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Sl.no. parameter Unit Value/features

9. Temperature at DS C 1350-1400

10. Temperature drop of HM after DS Unitincluding deslagging C Max. 30

11. S-level before treatment % 0.05-0.0710. S-level after treatment % ≤ 0.00512. Treatment Capacity Ladles/day 3613. Operation Days Days 32014. Capacity of Unit MTPA 3.5

Major components of Hot Metal Desulphurization unit

Conveying system of Materials

Storage tank

Dispensers

Lance and Lance hoisting Device

Ladle Transfer Car

Slag Pot Transfer Car

De-slagging equipment

Dust collecting equipment

Temperature measuring and Sampling device

Lance maintenance area

Electrical and Instrumentation facility

Level II automation

Hot metal granulation unit


The granulation unit is designed for granulation of large batches of crude iron at a rated capacity of 5t/minute.

Minimum metal temperature shall be 100°C above liquidus temperature.

The hot metal is transferred in ordinary transfer ladle to the granulation plant by overhead crane. The metal is

poured over the lip of the ladle into a tundish. The tundish is placed on a stand which is kept on top of the

granulation tank.

The granulation rate is mainly controlled by nozzle diameter and ferrostatic pressure of the tundish. The metal

level is controlled by a laser-measuring device placed on a stand above the tundish. The signal from the laser

measurement is used to control the auxiliary hook speed of the overhead crane.

An emergency overflow launder will lead the hot metal to an emergency ladle by the side of the tank if tundish

is overfilled for some reason.






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The stream of metal emerging from the nozzle strikes the refractory spray head and forms droplets, which fall

into the granulation tank underneath where the granules are solidified and cooled in the circulating cooling

water.

The granules are discharged from the tank by an air/water ejector up to a vibrating dewatering screen. There

is one discharge pipe with bends in wear resistance material leading to the dewatering screen.

From the dewatering screen the granules passes a vibration feeder onto a belt conveyor to the storage area.

The process cooling water for the granulation unit uses a recirculation system. The water from the dewateringscreen runs to a settling tank equipped with a screw feeder which discharge the fines continuously. Theoverflow water of the granulation tank also passes through the hot well from which it is pumped to the coolingtowers.

The system shall be designed in such a way that no fumes shall be released of late from the building.

Operating parameter:Granulation Capacity: 300 t/h

Hot metal temperature: 1350 – 1400 °C

Major components of Hot metal granulation unit

Hot metal ladle tilter

Granulation tundish

Emergency launder

Preheating burner

Spray head

Granulation Tank

Discharge system

Dewatering equipment

Main belt conveyor

Stands, plate work and platforms

Cooling water system

Pumps

Electrical equipment

Instrumentation and control system

Maintenance facilities for granulation units

3.6 Raw materials and linkages

Refer section 3.5.






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Resource optimization/Recycling and reuse

Basic Oxygen Furnace







3.7 Availability of water, its source, energy/power requirement and source

Source of waterWater is proposed to be sourced from Tapi River (Variao Pipe line). Water will be drawn to a raw water

reservoir located in the plant area.

Industrial quality make-up water at requisite pressure shall be made available at the battery limit for

tapping of industrial water to the respective units. Firefighting water at requisite flow and pressure as

per TAC norms shall be made available at the battery limit for tapping of fire water to the respective

unit’s fire water network.

Drinking water requirement will be met from existing drinking water plant.

Requirement of waterThe total water requirement for all upcoming units is summarized in table.

Units BOF

Raw Water (m3/h) 496Domestic water m3/h) 6.5

During construction phase around 10 m3/day of drinking water will be made available for around 500

workers from existing potable water plant.

Power RequirementUnit wise power requirement is as per table below.






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Units BOF

Powerrequirement 26.5 MW

The power required for the proposed project will be made available through existing MRSS # 1

3.8 Quantity of waste generation and scheme for management/disposal

Basic Oxygen FurnaceExpected levels of generations of plant waste materials, slag and gas are as follows:

Description Generation per ton of liquidsteel

Generation per year

BOF gas 113 Nm3 487 Million Nm3

BOF Dust and sludge 15 kg 64,600 tonBOF Slag rate 120 kg 517,100 tonSteam 95 kg 409,400 tonWaste water 0.082 m3 353,280 m3







Hazardous Wastes Generation and ManagementHazardous Wastes are mainly Waste Residue Containing Oil (including oil rags), spent oil & lubricants

generated from various process equipment, machines, vehicles, instruments, oil storage tanks etc.

Inventorization of the Hazardous Waste shall be as per Hazardous Waste (M,H&TM) Rules,

2008.Quantity of hazardous waste generated from all the units are mentioned in below table.

Management & DisposalHazardous waste used oil will be collected and stored in barrels or drums and later handed over toGujarat State Pollution Control Board (GPCB) authorized re-processors. The oily waste generated fromthe units will be collected and stored for later disposal in scientific manner as per the norms of theGujarat State Pollution Control Board.






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S.No.

Description of HazardousWaste

Quantity Management & Disposal

1. Used Oil (kl/yr) 70 Collection, storage, transportation and disposal byselling to registered re processor

2. Oily waste (t/a) 1 Collection, storage, transportation and disposal toregistered re processor

Sanitary waste water Generation and Management:

Considering all permanent and contractual staff working in the units, it is expected to generate around156 m3/day of sanitary waste which shall be treated in the existing sewage treatment plant. The treatedsewer at desired quality standard shall be used for horticulture purpose within the plant. The sludgefrom the treatment plant after drying and composting will be used as manure for vegetation.

3.9 Information of EIA purpose

Essar Steel complex is having statutory clearances for all the existing units from different governingbodies, along with the necessary environment clearances from Ministry of Environment & Forests, Govt.of India. Now the company has decided replace DRI Steel making with Hot metal steel making byinstallation of 1.35 MTPA Coke Oven Plant, Blast Furnace to produce additional 3.0 MTPA hot metal,Sinter Plant 2 & 3 viz. 1.5 MTPA and 5.5 MTPA respectively, and ASU of 2,200 t/d for which anenvironmental clearance application is already made.

The proposed reconfiguration is for 4.31 MTPA Steel Making by BOF with replacement of EAF withinthe steel complex at notified Hazira Industrial Area, Hazira district, Surat Gujarat.

The EIA Notification, 2006 stipulates that the required construction of new projects or activities or theexpansion or modernization of existing projects or activities listed in the Schedule to the notificationentailing capacity addition with change in process and or technology shall be undertaken in any part ofIndia only after the prior environmental clearance from the Central Government or as the case may be,by the State Level Environment Impact Assessment Authority, in accordance with the procedurespecified in the notification.

As per said notification, proposed reconfiguration also requires prior environmental clearance fromMinistry of Environment and Forests, Govt. of India, before starting construction, production or anyother allied activities. Further, it is essential to conduct an Environment Impact Assessment Study toidentify the impact of proposed reconfiguration on surroundings. The company will appoint a QCI(NABET) accredited consultant to conduct the EIA study.

The respective drawings are enclosed as an annexure with this report which provides the information ofEIA purpose.

4. SITE ANALYSIS

4.1 Connectivity

The existing steel plant is situated in the west coast of India at a distance of 27 km from the Surat Cityin the State of Gujarat. The Essar steel complex is well connected by rail, road and sea (around 145






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nautical miles north of Mumbai). Hazira village is the nearest habitation situated adjacent to the plantboundary. Surat Railway Station is major rail network junction located at a distance of around 33 kmand Surat Airport is located at a distance of around 9 km in the north east direction.

The proposed reconfiguration sites are well connected by four lanes wide National Highway No.6[Maharashtra Border- Surat –Hazira – Kolkata] at a distance of around 0.5 km. Ichhapur is situated atabout 17km from Hazira where important State Highway Ichhapur–Jahangirpura–Surat–Olpad mergeswith NH. The traffic from West/North and East/Central/South bifurcates/merges at Ichhapore junction.

4.2 Land form, land use and land ownership

The total land required for proposed facilities of BOF will be around 9.0(nine) Ha. The additional landrequired has been earmarked at within the steel complex. The land terrain of the proposed sites is flat.The area falls under the notified Industrial Estate.

4.3 TopographyThe steel complex is located in Hazira area and surrounded by Tapi estuary towards North East and theArabian Sea in South West - North West. The identified land for proposed reconfiguration is fairly plainwith no trees/shrubs. Some stacks of materials are existing at the site.

Topography of the surrounding area is set amidst brackish marshy area engulfed with the backwaters ofthe Arabian Sea. Tapi estuary and Hazira peninsula forms part of the region. Hazira peninsula consistsof four islands of Hazira, Junagam, Suwali and Mora, which are surrounded by extensive mud flats. Thebarren lands in the area were backfilled with dredging sand and have now transformed into majorindustrial hubs. The area is home to major industrial and shipping facilities such as Essar Group ofIndustries, Adani, Kribhco, Shell, Larsen & Toubro and Reliance. Villages such as Hazira, Gundardi,Junagam, Mora, Kawas, Dumas and Suwali are the major settlements around the steel complex.

4.4 Existing land use pattern

The existing land use pattern of the site is industrial (Hazira Notified Area) which is located at Hazira.The area is characterized by marshy lands and water bodies like River. The surrounding area is definedas follows;

Reserve Forest: Dumas RF, around 7 km, West side of the project

Water bodies: Gulf of Khambhat, 3 km, SW-NW and

Tapi River, 0.5 km, NE

The Tapi estuary is an important interface between the fresh water-fed ecosystems of southern Gujaratand the saline-water-fed ecosystems of the Gulf of Khambhat. The beaches at Suwali and Dumas arerepresentative of the mud-mixed-sand beaches typical to this part of India’s west-coast. The Suwalibeach, in particular, has a fairly undisturbed topography, complete with small runnels, rocky patches,tidal pools and a wide upper beach ending in fixed dunes, all of which continue to support a goodproportion of their characteristic flora and fauna.

There is no national park, wildlife sanctuary, archeological monuments and defense installation near theproject site.






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4.5 Existing infrastructure

Essar steel plant is having all the necessary infrastructure facilities within the premises and the samewill also be utilized during project reconfiguration.

A residential colony (Nand Niketan Township) along with medical care facility (Care Nursing Home) andschool is offered to cater the needs of plant personnel and their families. The port terminal facility ownsand operates by Essar Bulk Terminal Limited (EBTL) is to meet the requirement of raw materials importand export of finished products. Multiple stock yard area is present near the berth for storage of cokeand coal. A finished material storage godown is also available in the premises. The steel plant complexis well equipped with the 20, 10 & 7 meters wide internal roads which are connected with the mainSurat- Hazira road. The necessary supporting infrastructure like effluent treatment plant, seweragetreatment plant, drinking water & industrial makeup water facility and HT power transmission line arealso available within the steel complex.

4.6 Soil classification

As per the soil report available with ESTIL, sub soil at the site mainly consists of silty sand deposits withintermittent patches of expansive plastic clay deposit. The compactness of the silty sand depositgradually increases with depth. Below the top 2m loose silty sand, a medium stiff expansive, cohesivedeposit has been observed up to 4m depth. This is followed by medium dense silty send deposits up to19.5m depth. Again a seam of expansive, highly plastic cohesive deposit has been observed below thisup to 21m depth, followed by very dense gravelly sand continued up to the maximum of depth ofexploration of 24m.

4.7 Climatic data

The meteorological data of nearest IMD station Surat are available to understand the prevailingmeteorological conditions. The interpretation of meteorological data is as follows;

Temperature: The month of January is the coldest month of the year with mean maximum andminimum temperatures as 31.5 0C and 14.3 0C respectively. Likewise April is the hottest month of theyear with maximum and minimum temperatures as 37.7 0C and 23.7 0C respectively. The month wisetemperature variations in the project area district are given in Table 4.1.

Rainfall: The south-west monsoon normally enters into the state in the first week of June and prevailstill last week of September. The average annual rainfall in the study area district is 1209.4 mm. Majorityof rainfall (85%) is received under the influence of south-west monsoons during June to September.January and February are generally the driest month of the year. The rainfall as received in variousmonths of the year in the project area district is shown in Table 4.1.

Humidity: The relative humidity was observed to be high during the monsoon months from June toSeptember. The relative humidity was lower in other months of the year, with the lowest being recordedin the months of November to January.

Winds: The annual average wind speed ranged between 1 and 19 km/h with predominant wind inthe SW direction during March-October and NE in November-February, and (iv) the relativehumidity in the region varied from 32.8% (March) to 86.6% (August). The annual wind rose of Suratis included as Figure 4.2.

The average meteorological condition in the project area district is shown in Table 4.1.






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Table 4.1Average Meteorological Conditions of the Project Area District

MonthMean Temp Daily (0C) Rainfall

(mm)No. of Rainy

Days

Relative Humidity (%)

Max. Min. 8:30 hrs. 17:30 hrs.

January 31.5 14.3 0.0 0.0 65 39

February 33.5 16.1 0.4 0.0 62 33

March 36.2 20.1 1.5 0.2 64 32

April 37.7 23.7 0.3 0.0 66 38

May 36.4 26.4 7.3 0.3 68 55

June 33.8 26.6 249.3 8.0 79 70

July 31.0 25.4 417.7 15.4 88 79

August 30.6 25.0 299.4 13.2 89 79

September 32.2 24.4 190.7 7.6 86 70

October 35.9 32.0 27.2 1.2 72 49

November 35.3 19.3 13.0 0.8 61 43

December 32.9 16.1 2.6 0.1 65 43

Total 1209.4 46.8Source: Indian Meteorological Department (IMD)

FIGURE 4.2:ANNUAL WIND ROSE OF SURAT






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4.8 Social infrastructure available

Hazira area houses major industrial and shipping facilities having vast number of migrant population(within and outside the state) residing in the area. The major settlements near the steel plant are welldeveloped with respect to the social infrastructures.

The Essar group itself is continuously working towards improvement in the living conditions of localpopulation in the surrounding areas. Essar steel India ltd. has created the good social infrastructure likeHospital, School, Community Hall, Bank, Post office, Market, Temple and Sports Stadium etc. within theexisting steel complex.

The social infrastructures available within the region with respect to education, medical facility, drinkingwater supply, Post and Telegraph, transportation, approach roads, bank and recreational source aredescribed as follows;

Education: the area is having good educational facility in the form of primary and secondary schools.The college level educational facility is present in Dumas village.

Medical Facility: Inhabitants are availing health facility in different forms. Nearby villages are havingPrimary Health Sub-center, Maternity & Child Welfare and Family Welfare Centers. Allopathic hospitalsand dispensaries are also available in Hazira village. The Maternity home, Health Center and PrimaryHealth Center (PHC) are operating actively in Suvali and Dumas village.

Drinking Water Supply & Sanitation: Mode of drinking water supply in the nearby villages is mainlythrough tap, open dug wells, OHSR with Public Stand Posts (PSPs) and tank. Essar is also constructinga water pipeline to carry 0.7 million m3 of drinking water every day to the villages near Hazira. Thelevels of sanitation facilities prevailing in most of the region is satisfactory good. The naturalenvironment of the region is pleasant because of the closeness to sea and greenery around.

Transportation and Communication: Post office and telephone connection are the communicationfacilities available in the area. Approach roads are mainly paved. Government bus service and privateowned vehicles are mainly used for traveling.

Power Supply, Bank & Recreational: Power supply is available in all the nearby area for all purposes.The surrounding area is also having formal financial institutions like Banks and recreational facilities likeSport Club, Cinema / Video Halls etc.

The vegetable market used to open in the Mora village on every Sunday as a weekly market which islocated centrally. Panchayat houses available in the region are well maintained and equipped withnecessary information. In most of the Panchayat houses records are made available by Talati. In all thePanchayat house’s Talatis are having defined days when they make records and information availableto the localities. Most of the social infrastructures are in good condition and functioning well.

5. PLANNING BRIEF

5.1 Planning Concept

The existing portfolio of Hazira area includes industrial activities such as petrochemicals, fertilizers,heavy engineering, steel, energy and port related activities. The area is declared as a notified industrial






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estate and known as the industrial hub of India. More than 20 large and medium sized companies arelocated in Hazira area including Essar, Larsen & Toubro, Reliance, Kribhco, NTPC, Adani, Shell, BPCL,Cairn Energy, ONGC, GAIL, Gujarat State Petroleum Corporation, Hindustan Petroleum, and Ultra-Tech Cement among others.

The port facilities in the area are well connected with railway and roads. The Hazira Port has closeproximity to the high speed dual carriageway and well connected with main Mumbai – Ahmedabad -Delhi broad gauge railway line. Moreover the companies like Essar, RIL, L&T, KRIBHCO, and GujaratAmbuja Cement Limited. etc., located at the mouth of Tapi estuary are having captive jetties for importand export of their products.

Presently Essar Steel India Ltd. is running an integrated steel manufacturing plant along withcomprehensive infrastructure set up in the notified Hazira Industrial Area. The rail and roads are welldeveloped/strengthened in the region for transportation of raw materials and product. The basicinfrastructure facilities are also well established.

Now Essar Steel is planning to replace DRI based steel making with Hot metal by installing a BlastFurnace, Sinter Plants, Coke Oven Plant and air separation unit within the existing complex, for whichan environmental clearance application is already made.

The proposed reconfiguration of Steel Making Plant-1 will take care of all the rules and regulations ofstatutory authorities and provide the control measures and adequate pollution control equipment’s toachieve the standard norms. Further proposed reconfiguration activities will only be started after gettingstatutory clearance form related authorities.

5.2 Population Projection

The proposed reconfiguration will provide direct and indirect employment to around 2,281 people. Thesemiskilled/unskilled personnel available in the nearby areas will be employed during construction andoperation phase and skilled personnel will be called from outside the area. The nearby area has soundinfrastructure resources with reference to housing facility, education, medical facility, drinking watersupply, Post and Telegraph, transportation, approach roads, and bank facilities to cater the additionalpopulation of workers. In addition to that existing Nand Niketan Township will also cater the residentialneeds of the permanent personnel’s and their families. It is expected that the population in the nearbyarea will be slightly increased.

5.3 Land Use planning (break up along with green belt, etc)

The proposed plant is located at Hazira village in Gujarat. It is about 27 km from Surat railway station.

Total land requirement proposed facility of BOF is about 9.0(nine) Ha. The additional land required forsetting up all the units has been earmarked at different places within the steel complex.

Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh squaremeter area (84 ha). Besides, Green zones developed within the complex in around 75 ha of area. Thustotal Green cover developed at Essar Complex, Hazira is 159ha which is about 20 % of the total area ofcomplex including township.






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5.4 Assessment of Infrastructure Demand (Physical and social)

The proposed reconfiguration is planned within the existing steel plant premises where sound physicaland social infrastructure like well-maintained Township, Green parks, Hospital, School, Community Hall,Bank, Post office, Market, Temple and Sports Stadium, transportation, cafeteria’s, approach roads,effluent treatment plant, sewage treatment plant, water treatment plant are available. In addition to theexisting infrastructure, internal roads network, sanitation facility and effluent treatment plant areenvisaged for the proposed reconfiguration.

5.5 Amenities/facilities

The steel plant complex is having adequate amenities/facilities as briefed in Para 5.4. Apart from thatno additional amenities/facilities are planned.

6. PROPOSED INFRASTRUCTURE

6.1 Industrial area

The industrial area will comprise the major technological facilities as described in section 5.1

6.2 Residential area

The proposed reconfiguration is a part of Essar steel complex and already having a well maintainedresidential colony (Nand Niketan Township). This existing township will efficiently cater the additionalrequirement of residential area for plant personnel and their families. Consequently no additionalresidential (non-processing area) is planned for proposed reconfiguration.

6.3 Green belt

Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh squaremeter area (84 ha). Besides, Green zones are developed within the complex in around 75 ha of area.Thus total Green cover developed at Essar Complex, Hazira is 159ha which is 20 % of total area ofcomplex including township.

At the time of environmental appraisal of various ECs of Essar Steel, Hazira, it transpired, in view ofspace constraint that Essar has to develop GB keeping in view the entire Essar complex. Thus ESTILagreed to develop a green belt in around 22 % of total area of Essar Complex at Hazira. Green Beltdevelopment is a continuous activity and it is going on where the space is cleared after the completionof project work.

Moreover, we are in a process of carrying out 1000 Ha Mangrove plantations within 10 years. Thisactivity was started in the year 2008 in consultation with GEC. Till March 2014, total 700 Ha mangroveplantations have been completed. Total 17,50,000 saplings have been planted at coastal areas of Suratand Bharuch district.






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6.4 Social infrastructure

Essar Steel India Ltd. is committed to develop the neighbouring areas through implementing corporatesocial responsibility of the organization. The company has developed the infrastructures like waterpipelines, schools, roads, playgrounds, water storage tank etc. in neighbouring areas. Additionally thecompany is maintaining lush green gardens, school, community hall, bank, post office, market, temple,sports stadium, transportation facility, cafeterias, medical care facility, extensive road network etc.within the existing steel plant complex. No additional social infrastructure is planned during for proposedreconfiguration.

6.5 Connectivity

All the units in existing steel plant are well connected with each other via network of 20, 10 and 7 meterwide internal roads. The main internal roads are well connected with the national highway passesthrough the complex as well as the Essar port facility. This internal road network will be expand andadjoined with all the reconfiguration sites.

6.6 Drinking water management

The drinking water requirement is around 156 m3/day, which will be sourced from existing mineral waterplant located within the plant premises.

Additionally during construction phase around 10m3/day of drinking water will be made available foraround 500 workers from existing mineral water plant.

6.7 Sewerage system

Considering the all the permanent and contractual staff working in the units, it is expected to generatearound 156 m3/day of sanitary waste which shall be treated in an existing sewage treatment plant. Thetreated sewer at desired quality standard shall be used for horticulture purpose within the plant. Thesludge from the treatment plant after drying will be used as manure for vegetation.

6.8 Industrial & solid waste management

Refer section 3.9.

6.9 Power requirement & Source

Refer section 3.8

7. PROJECT SCHEDULE AND COST ESTIMATES

7.1 Project Schedule

The project will start after getting all the environmental clearances. The entire project is expected to becommissioned within 34 months, starting from zero date. Unit wise schedule is as per below table.

The EPC breakup of the schedule is as below.






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IMPLEMENTATION SCHEDULE (EPC break up)Schedule in monthsUnits 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34

BOFEngineeringProcurementConstructionCommissioning

7.2 CAPITAL COST ESTIMATE

The snapshot of capital cost estimate for the proposed project of Essar Steel India Ltd. (EStIL), HaziraFacility is given as below:

SUMMARY CAPEX ESTIMATEBase: First Quarter 2014 Unit: ` Crores

Basis of estimate

The costs have been worked out on the basis ofprices prevailing during 1st Quarter 2014 and do notinclude any provision for future escalation in costsduring implementation period.

The cost estimates are generally based on availablein-house information and costs extracted from similarprojects after suitable adjustment to reflect current prices.

100% new equipment has been envisaged for procurement and use in the project. No second hand andrevamped equipment is envisaged while estimating the project cost.

Engineering

Provision has been made in the estimate towards engineering services comprising mainly of preparation ofproject reports and technical specifications, detailed engineering, and support services during projectimplementation stage.

Sr.No. Item BOF

A EPC Cost

1 Engineering 772 Procurement 8653 Construction 541

Total A 1483B Owner's Cost

1 Preliminary & Pre-operative Expenses 174

2 Contingencies 91

3 Interest DuringConstruction (IDC) 79

4 Total B 344Total Project Cost (A+B) 1827

Incl. EMS Cost (Order ofInvestment) 334






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Procurement

The main technological units envisaged are placed at the beginning of the chapter. The basic cost estimatefor these units is based on budgetary quotations wherever available and in other cases, the cost is based onin-house data available for similar equipment installed in other projects.

The procurement inter-alia includes plant and machinery, technological structure and 1-year requirement ofoperational and maintenance spares.

Adequate provision has also been made in the estimate to account for ocean freight and marine insuranceport handling and clearance charges and inland transportation, transit insurance and handling at site.

Construction

The civil and structural cost has been worked out on the basis of design of facilities and rates for civil worksas applicable in the region. The facilities included in the estimates are factory buildings including main andauxiliary services, non-factory buildings, miscellaneous civil works etc.

The estimate includes foundation and installation charges both for imported as well as indigenous plant andequipment. The activity involves setting up, assembling, placing in position, and connecting or otherwisemakes plant ready for use.

Land

The project is a brownfield project and land already exists for reconfiguration.

Site development

The site is fairly developed and hence no provision has been kept towards site development.

Duties & Taxes

Adequate provision has been made in the estimate towards applicable statutory duties and taxes on suppliesand services envisaged for the reconfiguration program.

Pre-operative expenses

The preoperative expenses inter-alia includes upfront fee, debt syndication, LC Charges, TEFR appraisalcharges, start-up expenses, insurance during construction, salaries and wages and overheads duringimplementation, etc.

Contingencies

Contingencies at the rate of 10% of the capital costs have been provided to cover unforeseen aspects of theestimate.

Interest during Construction (IDC)

It has been assumed that the project would be financed in the D: E ratio of 65%:35%. While drawing thefunds based on phasing of expenditure, it has been assumed that both debt and equity shall be drawn






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simultaneously. Interest on loan capital has been considered at the rate of 12.5%. Interest during construction(IDC) has been worked out based on implementation schedules given at the end of the chapter, interest rateon long-term debt and withdrawal pattern of fund.

Exchange rates

The capital cost estimate has been made considering following exchange rates, wherever applicable and asprevailing on 19th April 14.

1 USD = ` 60.2035

Exclusion

The cost estimate does not provide for following:

1. Any future escalation in prices2. Any currency fluctuations in future3. Any changes in rate of duties & taxes4. External Infrastructures

8. ANALYSIS OF PROPOSAL

Essar group is a large player in the sectors ranging from Steel to Energy (Oil & Gas, Power), Infrastructure(Ports & Projects) and Services (Shipping, BPO, Telecom and Realty) and making noteworthy contribution inIndian economy. The proposed reconfiguration is linked with the existing Essar steel plant which will help thecompany to reach at its full potential, thereby benefitted Indian and state economy as a whole and thenearby community.

The extensive ranges of steel products are produced in the existing steel plant which is consumed in varioussectors of Indian economy and contributing in direct and indirect taxes such as domestic sales taxes, capitalgoods taxes, value added taxes (VAT) and employee income taxes etc. The proposed reconfiguration willalso add up in a similar manner and provide additional direct & indirect employment and businessopportunities to the communities which would finally result in improvement in the quality of life of people inthe nearby areas. Similarly railways, industrial authorities, water supply agencies etc. will also get benefittedindirectly.The company is committed to adopt superior and proven process technologies that prevent emissions andsignificant adverse impacts on the existing environment. The operational efficiency is achieved throughreducing energy and materials as input factors for production and at the same time waste materials are alsoreduced & recycled to extent possible. This sort of actions of eco-efficiency produces concurrentenvironmental and economic benefits for the company and thereby contributes into stronger financialperformance and more positive profitability.The Essar foundation is setup by the group to pay attention to the Corporate Social Responsibilities. Thefoundation is working within the framework of the 3E model -Entrepreneurship, Education and Environment -to adopt a future-focused approach to sustainability. The Foundation's activities, divided across six focusareas like livelihoods and entrepreneurship, women's empowerment, health, education, infrastructure andEcology & environment.In line with the Essar’ s CSR policy, Essar steel is working towards improvement in the living conditions oflocal population near the project, particularly in the areas of health & hygiene, civic amenities, infrastructure,






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education & training, water supply etc. The major activities being undertaken at present in these areas areas follows;

Built a water pipeline to carry 0.7 million m3 of drinking water every day to the villages near Hazira. Organises weekly recreational programmes for children between the ages of 9 and 12 at Ankur Bal

Kendra, Hazira. Provides subsidized medical care at the Essar Hospital at Nand Niketan for the local population. Provides subsidized education facilities at Nand Vidya Niketan for children of nearby communities. Constructed overhead water storage tank at Matafalia village. Maintains water pipelines, community wells etc. Supported electrification of the 7 km stretch of road from L&T to Mandali Gate. Built an approach road to the village crematorium. Donated an ambulance to the Arogya Samiti of Hazira village.

Considering all fact and figures, it is concluded that the reconfiguration will also be beneficial to the societyas the company will be contributing more into community welfare, public infrastructure improvement andcreate number of jobs for the locals during construction and operational phase. It is recommended toreconfigure the Steel Making Plant -1, within the premises of existing Essar steel Complex at notified HaziraIndustrial Area, Hazira district, Surat, Gujarat.

ESSAR PROJECTS (INDIA) LIMITED ENGINEERING & PROJECT MANAGEMENT

EXHIBIT-1Location Planof BOF

H

SIN

TER

-1

JETTY

SURAT

HAZIRA

ESSAR PORT

L&T

SHELL

BYPASS ROAD

SURAT HAZIRA ROAD

ESSAR PROJECTS (INDIA) LIMITED ENGINEERING & PROJECT MANAGEMENT

essar steel india limited

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