feasibility project report - welcome to environment steam consumption would increase in power...

Feasibility Project Report

FOR Proposed Modernization by replacement of old second hand lower efficiency turbines by new higher efficiency turbines, resulting in increase in power generation of CPP from Consented 81.5 MW to 98.7 MW without increasing Number and Capacity of Boilers, Raw material, Water and Land Requirement.

AND Expansion by adding: A. 4x15T Induction Furnace (2,25,000 TPA), with

LRF (30 T) & CCM (3Strand) B. 2,00,000 TPA Rolling Mill

of

SARDA ENERGY & MINERALS LIMITED (Formerly known as Chhattisgarh Electricity Limited and

Raipur Alloys & Steel Limited.)

At

PHASE-I, SILTARA INDUSTRIAL GROWTH CENTRE, DISITRICT– RAIPUR (C.G.)

Ph: 0771- 2216100

PART – A Proposed Modernization by replacement of old second hand lower efficiency turbines by new higher efficiency turbines, resulting in increase in power generation of CPP from Consented 81.5 MW to 98.7 MW without increasing Number and Capacity of Boilers, Raw material, Water and Land Requirement.

Sarda Energy & Minerals Ltd.

Page 1 Feasibility Project Report of 81.5 MW to 98.7 MW Power

CHAPTER – 1

Executive Summary M/S Sarda Energy & Minerals Ltd. (Formerly M/s Chhattisgarh Electricity Company and Raipur Alloys & Steel Ltd.) had established 81.5 MW Captive Power Plant (60 MW Coal based and 21.5 MW WHRB based) at Phase – I, Siltara Industrial Growth Center, Raipur. Existing plant has 7 Boilers (3 Coal Fired and 4 WHRB) and 3 TG Sets. The steam from 7 boilers is fed to the 3 Turbines Sets connected to inter connected common steam receivers. The turbines were purchased second hand. Two Turbines (U#2 andU#3) have low efficiencies as their operating steam parameters are much inferior to the original rated parameters (Original Specification - 90Kg/Sq.cm & 520oC, Present available Parameter – 59.7 kg/cm2& 496 oC). As a part of the modernization programme, it is proposed to replace the two low efficiency turbines with new BHEL make higher efficiency turbines. As a result with same steam consumption would increase in power generation capacity from presently consented 81.5 MW to 98.7 MW. The BHEL turbines are designed based on the input steam parameters (59.7 kg/cm2& 496 oC) available from the boilers.



CHAPTER – 2

Introduction of the Project and Project Developer PROJECT AT A GLANCE 2.1 Company Details

Company’s name : Sarda Energy & minerals Ltd. Address

: Phase-I, Industrial Growth Center, Siltara, Village –Siltara Raipur (Chhattisgarh) 493 111

Telephone No. Fax No. E-mail Address

: : :

(0771) 403925 to 29 (0771) 403924 / 33 [email protected]

2.2 Board of Directors

Board of directors

:

Shri K. K. Sarda Shri Pankaj Sarda Shri P. K. Jain Shri A.K. Basu Shri P.R. Tripathi Shri R.K. Mehra Shri Gajinder Singh Sahni

2.3 Site Details

Project Location

:

Phase-I of Siltara Industrial Growth Centre, Village - Mandhar, Raipur (C.G.)

Nearest Railway Station : Mandhar – 1.5 Kms. Nearest Airport : Raipur – 25 Kms. Road Access : National Highway No.200 - 5 Km. Nearest Sea Port : Visakhapatnam –500Kms., Altitude : 289.5 Meters



Latitude : 21o 22’ 22” – North Longitude : 81o 41’ 31” East Wind data : Max. 60 Kms. Per hour Rainfall : 40” – 60” (June – September) Temperature -Minimum -Maximum

: :

7 oC 46 oC

2.4 Project Details

Proposed Modernization by replacement of old second hand lower efficiency turbines by new higher efficiency turbines without changing the civil structures and any other component of the power plant.

Resulting in increase in power generation of CPP without increasing Number and Capacity of Boilers, Raw material, Water and Land Requirement. There will be no increase in the present level of land, water and air pollution as the quantity of fuel and water will remain unchanged.

Expected date of commercial production : Dec 2017

Financial Details of the Project

Cost of the Project : Rs. 5,273 Lac Means of Finance

-Promoters Contribution -Term Loan

: :

Rs. 1,582 Lac Rs. 3,691 Lac



2.5 Brief History

Details of NOC, ECs, and Consents for existing 81.5 MW Power Plant is as under:

16.10.1998 - “No Objection Certificate” for installation of 40 MW Coal Based Captive Thermal Power Plant granted by Madhya Pradesh Pollution Control Board (MPPCB).

23.07.1999 - Environmental Clearance for installation of 40 MW Coal Based Captive Thermal Power Plant issued by Department of Housing & Environment Govt. of Madhya Pradesh, Bhopal

30.08.1999 - Permission to Establish for 40 MW Coal Based Captive Thermal Power Plant issued by MPPCB

05.12.2001 - Consent to Operate for operation of 25 MW Coal Based Captive Thermal Power Plant. (Phase I of 40 MW)

24.03.2004 - Amendment in Consent to Operate for 40 MW (25+15 Coal Based Captive Thermal Power Plant issued by Chhattisgarh Environment Conservation Board (CECB), Raipur.

17.10.2003 - Permission to establish for expansion from 40 MW Coal based captive Thermal Power Plant to 61.5 MW Coal based and Waste heat recovery based Captive Thermal Power Plant issued by CECB.

23.04.2005 - Consent to Operate for Operation of 61.5 MW Power Generation Plant issued by CECB.

28.09.2007 - Further, Company has obtained Environmental Clearance granted for Expansion of Steel Plant (Sponge Iron, 4,60,000 to 6,10,000 TPA; Steel Ingot/Billets 2,00,000 to 3,60,000 TPA; Rolling Mill 1,80,000 TPA and Pig Iron (650M3-BF) 4,00,000 TPA and Captive Power Plant 40MW (FBC boiler 20MW & WHRB 20MW)) from MoEF, Govt. of India, New Delhi.

24.02.2009 - Permission to Establish for installation of 3rd 90 TPH FBC Boiler on standby basis issued by CECB, Raipur

05.08.2010 - Amendment in Permission to establish for installation of 20 MW FBC based Captive Power Plant as per EC dated 28.09.2007

08.12.2010 - Consent to Operate for 3rd 90 TPH FBC Boiler running on standby to continuous basis for generation of 20 MW Power.



CECB since then has been regularly renewing the Consents of 61.5 MW and 20 MW Captive Power Generation Plant. The consents was last renewed on 17.05.2016 and 20.05.2016 for 61.5 MW and 20 MW Captive Power Generation Plant Respectively the consents are valid up to 31.12.2018.

2.6 Company Background

Sarda Energy & Minerals Ltd. (Formerly Chhattisgarh Electricity Company Ltd.), Incorporated on 23rd January 1998, is a Public Limited Company. The company has a Pellet plant of capacity 0.6 MTPA. The Company had installed 20 MW coal based thermal power plant, which commenced operations in the year 2001, gradually the capacity of power plant has been increased to 81.5 MW. The Company also installed five 9 MVA Submerged Arc Ferro alloys furnaces in phases to use captive power from power Plant and to have maximum realization for the power generated presently total capacity of plant is 45 MVA, which makes company the second largest producer of manganese based Ferro Alloys in the country. The facilities are installed at Industrial Growth Centre, Siltara, Raipur over an area of about 70 acres. Chhattisgarh Electricity Company Ltd. has got merged with Raipur Alloys & Steel Limited as per the orders of Hon’ble High Court of Chhattisgarh, Bilaspur dated 11th May, 2007 & the name of Raipur Alloys & Steel Limited has also been changed to “Sarda Energy & Minerals Limited” (SEML) as per Fresh Certification of Incorporation dated 2nd August 2007. Liberalization of economy by the Government, throwing open for manufacturing of Iron and Steel including mining of iron ore, coal and other related minerals to private entrepreneurs, provided an avenue for further growth in this segment to SEML. Company is a industrial house to set up a modern integrated steel plant at Siltara Industrial Estate, Raipur. The steel plant uses non-coking coal for sponge iron production of 79,200 TPA, further it has expanded to 4,60,000 TPA sponge iron production. Initially for meeting its requirement for 79,200 TPA sponge iron, SEML obtained a mining lease for iron ore situated at Dongarbor in the Rajnandgaon District, to produce 2.0 lakhs TPA. After expansion of sponge iron plant to meet its requirement of iron ore, the company has increased production capacity of Dongarbor Iron Ore Mine from 2.0 lakhs TPA



to 15.0 lakhs TPA for extraction of iron ore in the year 2007. Company has been allotted a captive coal block at Karwahi near Tamnar, District- Raigarh, and Chhattisgarh State to produce 1.2 Million TPA coal. Company is having underway project for installation of 1.1 Million TPA Integrated Steel Plant and 60 MW WHRB Power Plant at Siltara Industrial Growth Centre, Mandhar, and Raipur.

Present Manufacturing facilities:

The present manufacturing facility of the Company is situated at Phase-I, Siltara Industrial Growth Centre, Siltara, Raipur and other districts in Chhattisgarh and comprises of the following:

S.N. Facility Capacity 1 Sponge Iron 4,60,000 TPA (with WHR facility)

2 Steel Melting 3,60,000 TPA

3 Ferro Alloys 5 X 9 MVA Furnaces ( 90,000 TPA)

4 Power Plant 81.5 MW

5 Rolling Mill 1,80,000 TPA

6 Pellet Plant at Mandhar 6,00,000 TPA

7 Iron Ore Mine at Rajnandgaon 1.5 Million TPA

8 Coal Mine at Raigarh 1.2 Million TPA

9 Coal Washery at Raigarh 0.96 Million TPA

Patent

The Company is marketing TMT bars under its registered trademark “Hytech”which has got tremendous response from the corporate sector due to its quality. The company has also got Patent for its Special Design Steel Bar that is registered in class 25-99 at design no. 198260. The patent is valid for an initial period of 10 years and may be extend for a further period of five years.



Capital Structure

The Authorized capital of the Company is Rs. 50 Crores and the present issued and paid up capital is Rs. 36.02 Crores.

Bankers

The Company is banking with Union Bank of India, Bank of Baroda, Axis Bank, State Bank of India and RBL Bank under consortium.

Listing The Company is currently listed on the Bombay Stock Exchange Limited under scrip code 504614 and on the National Stock Exchange of India Limited under scrip id. SARDAEN.

Credit Rating

Short Term Rating given by CARE is “PR+1”, the highest rating.

Long Term Rating given by CARE is “A+“.

Shareholding Pattern

The promoters of the Company hold around 71.20% shares and the remaining is held by FII’s, Banks, Corporate Bodies and public.

2.7 Management

Board of Directors:

Kamal Kishore Sarda, aged 64 years, B.E.(Mech.) is Chairman & Managing Director of the Company. He has more than 40 years industrial experience and has a brilliant track record. He stood 1st in SSC Merit in M.P. and 2nd in B.E. (Mech.) Merit. He has also completed course on Strategic Management from IIM, Ahmadabad. He has traveled extensively across the world to study & observe new developments & trends in the industry. He is the Ex-Chairman of CII, Chhattisgarh Chapter.

Mrs. Uma Sarda aged 58 years, is graduate in Arts (Home Science). Mrs. Uma Sarda is attached to Friends of Tribals Society an NGO which works for the primary



education of the tribal children and health care of tribal people of Chhattisgarh. Apart from the above, she is also a participant in various social activities in and around Raipur. She is also on board of other companies.

Pankaj Sarda, aged 37 years is an Industrial Engineer from Nagpur University and has also completed Masters’ Degree in Science in Industrial Administration from Purdue University. He has an experience of 7 years in the field of Corporate Affairs and Management. He has been appointed as Whole time Director W.e.f. 1st November, 2007.

Rakesh Mehra, aged 64 years, FCWA, is Ex-General Manager of MPAVN. He is a Financial Consultant and serves as a Professional director on the Board of many Companies. He was Ex-General Manager of Madhya Pradesh Audhyogik Vikas Nigam (MPVAN) and has more than thirty years of experience in the field of finance and accounting.

Asit Kumar Basu, aged 67 years is B.M.E. with rich experience over forty years in the field of finance. He is Ex-CGM, IDBI. He provides his expertise to the Board on financial matters related to the Company.

Prabhakar Ram Tripathi, aged 73 years, is an authority on mine management and mineral Grinding. He earned honors in Bachelors of Science in Mining Engineering from Indian School of Mines, Dhanbad, Jharkhand, India. He also earned his First Class Mines Manager's Certificate under coal mines regulation. Former Chairman & Managing Director of National Mineral Development Corporation (NMDC), he has more than 47 years experience in the field of mining and related activities. He is recognized as a leading management practitioner in India and has also contributed to development of management excellence through association with All India Management Association and National HRD Network

G.S. Sahani, aged 70 year is a 1971 IAS officer of Madhya Pradesh Cadre. He has done his graduation from Punjab University in Political Science and History and post



graduation in Public Administration from University College of Swansea, Cardiff University, UK. A Former Director General of Shipping, Govt. of India and Former Secy. (Coordination), Cabinet Secretariat, Govt. of India.

Mr. C.K. Lakshminarayanan, aged 68 year has completed his Bachelor Of Technology degree. He had a long career with various organisations at various positions.He worked as a Plant Engineer for 8 years with Madras Petrochem Ltd.Thereafter he worked with Industrial Development Bank of India, firstly in Project finance and then in Investment Banking. Lastly, he worked as President and CEO of ST-CMS Electric Company Pvt. Ltd., which is operating a 250 MW IPP.

Mr. Jitender Balakrishnan aged 67 year has done B.E. (Mech.) from National Institute of Technology, Madras University and has also done Post Graduate Diploma in Industrial Management from Bombay University. He had a long career with IDBI Bank Group serving in various positions before retiring as Advisor in May 2010. He has wide experience in the sectors like, Oil and Gas, Refineries, Power, Telecom, Airports, Roads, Ports, Steel, Cement, Fertilizers, Petrochemicals, Hotel, Pharmaceuticals, Paper, etc.

Padam Kumar Jain aged 53 years, is a senior Chartered Accountant and company secretary with more than 28 years industrial experience with various industrial units. He is whole time director of the Company looking after Corporate Finance. He is in the capacity of a professional director and guides the company on corporate finance, co-ordination with Banks and Financial Institutions and also investment activities.



CHAPTER – 3

Project Description

3.1 Existing Power Plant.

The existing 81.5 MW Power Plant consist of 7 Boilers (3 Coal Fired and 4 WHRB) which connected to 3 Turbine Generators set to inter connected common steam receivers.



3.2 The Plant Schematic Diagram with major Component is under:



The existing turbines are old and were purchased secondhand. The detail of Existing Turbine are as Follows:

U# 01

Make : Siemens Type : Condensing Extracting Twin Cylinder Steam turbine Inlet Steam Pressure & Temp :

Rated Parameters 59.7 Kg/cm2& 496 oC

Operating Parameters

59.7 Kg/cm2& 496 oC

Installation Year : 2001

U# 02

Make : Alstom (Germany) Type : Single Cylinder Steam Turbine Inlet Steam Pressure & Temp

Rated Parameters 90Kg/Sq.cm & 520oC Operating Parameters 59.7 kg/cm2& 496 oC

Installation Year : 2004

U# 03

Make : Alstom (Germany) Type : Single Cylinder Steam Turbine Inlet Steam Pressure & Temp

Rated Parameters 90Kg/Sq.cm & 520oC

Operating Parameters 59.7 kg/cm2& 496 oC Installation Year : 2008

Two Turbines (U#2 andU#3) have low efficiencies as their operating steam parameters are much inferior to the original rated parameters M/s Bharat Heavy Electricals Limited, was approached for optimization of the power plant. BHEL surveyed the plant and suggested, that the two low efficiency Turbines (U#2 andU#3) can be replaced with new higher efficiency Steam Turbines without changing the civil structures and any other component of the power plant.



3.3 Reason of Turbine Replacement

The Proposed Modernization will be achieved by replacement of old second hand lower efficiency turbines by new higher efficiency turbines without changing the civil structures and any other component of the power plant The primary reason of low efficiency/higher specific steam consumption of the two turbines of U# 2 and U# 3 is that the input steam available from the boiler is at Pressure59.7 kg/cm2&Temperature 496 oC against the Rated steam parameters at Pressure90Kg/Sq.cm &Temperature 520 oC. BHEL has designed the new turbines for the available input steam of Pressure 59.7 kg/cm2&Temperature 496 oC BHEL has given Guaranteed SSC of 3.82 T/MW for TG-III without condenser replacement and 3.8 T/MW for TG-II with condenser placement

This Modernization would result in increase in power generation of CPP without increasing Number and Capacity of Boilers, Raw material, Water and Land Requirement

3.4 Power Generation Capacity After the Proposed Modernization by replacing 2 (TG-02 & TG-03) Turbines with new High Efficiency Turbines the power generating capacity will be as under:

Turbine Name

SSC STEAM CONSUMPTION Power Generation

U# 3 3.82MT/MW* 137.5TPH 36MW U# 2 3.8MT/MW* 136.8TPH 36MW U# 1 4.5MT/MW 120.1 (Balance Available Steam) TPH 26.68MW TOTAL 394.4 98.7MW

* Parameter Guaranteed by BHEL



3.5 Location (map showing general location, specific location, and project boundary and project site layout) with coordinates

–

Map Showing General Location



3.6 Plant Layout:

3.7 Details of alternate sites considered and the basis of selecting the proposed site,

particularly the environmental considerations As the proposed project is the Modernization of existing CPP by replacement of Low efficiency Turbines with high Efficiency Turbines. Thus, no alternative sites were considered.

The following are the factors in favor of selection of site at village Siltara: Easily availability of raw material Availability of adequate water Availability of adequate with approach roads Suitability of land from topography and geological aspects Proximity of National Highways & Transport of heavy equipment.



The environmental consideration of the site is tabulated below: Sr. No. Particulars Details

1. Latitude Between N 210 20’09.74” – N21020’42.57”

2. Longitude Between E81041’10.57” - E810 42’02.48”

3. Altitude 282 m above MSL

4. Toposheet 64 G/11

5. Seismicity Area falls under least affected earthquakes zone II as per IS 1893 - 1984

7. Climatic condition (Annual Average)

Ambient Air temp 7oC to 46oC Avg. annual rainfall 1200 mm

8. Nearest village Siltara

9. Nearest town Raipur

10. Nearest railway station Mandhar (1.5 KM)

11. Nearest airport Raipur (25 KM)

12. Streams / Rivers Kharoon

Sr. No. Particulars Details

13. Sanctuaries /National Parks/ Biospheres, etc.

Nil

14. Topography Gently sloping

15. Defense Installations Nil

16. Historical Places Nil

17. Road Access NH 200 (5 KM)

3.8 Project Area description



The Proposed Modernization will be achieved by replacement of old second hand lower efficiency turbines by new higher efficiency turbines without changing the civil structures and any other component of the power plant

This Modernization would result in increase in power generation of CPP without increasing Number and Capacity of Boilers, Raw material, Water and Land Requirement

Thus, no additional Land is required.

3.9 Mechanical Equipment and Process Flow Diagram 3.8.1 Brief Process Description (Manufacturing Process): A thermal power plant consists of 3 major components: a. Boiler:

Where water is converted into steam by burning of fuel/heat of waste gas. The chemical/heat energy in the fuel/waste gas gets transformed/converted into thermal energy in steam. (Enthalpy).

b. Turbine – The prime mover. The steam from the boiler is used to drive a rotary machine called turbine. The thermal energy in steam is converted/transformed into kinetic (mechanical) energy of the rotating.

c. The Generator The turbine drives (rotates) the generator producing electricity energy. The mechanical energy is converted into electrical energy in the generator. The electrical Power (kw/MW)/Energy (kWh) is generated in generator.

There are two (2) types of combination by which power plant components can be assembled / made into operation a. Fixed Line: Where Capacity of Boiler and Turbine is matched, that means

power of one TG set is decided according to steam availability from one Boiler.

b. Combination: Where a combination of Boilers having same steam pressure and temperature are connected to common steam supply bus and steam is fed to various combination of turbine generator set for power generation as



per availability of steam. This system introduces greater flexibility of overall plant operation as well unplanned shut downs results in lesser loss to the utility / plant.

SEML has opted for later (Combination) assembly line looking into the flexibility of overall plant operations.

Coal Based Power Generation: The Thermal Power Plant requires coal, char/dolachar as a raw material and water. The requirement of coal is met from M/s South Eastern Coalfields Limited, char/ dolachar is supplied from own sponge iron plant and water is supplied by M/s Chhattisgarh State Industrial Development Corporation Limited. In the Power Plant, (-) 200 mm size coal is received from M/s South Eastern Coalfields Limited. The coal is crushed in coal handling plant from 0 to 6 mm size. The steam generating equipment is called as Boiler. The Boiler erected at this station is natural circulation type, Fluidized Bed Combustion system. The coal is burnt in fluidized state, The steam leaving from Boiler drum is further heated in connective Super Heater, Primary and Secondary Super Heater by the hot Flue gas. The Flue gas temperature discharge after E.S.P. is 145 oC. The Steam leaving the Boiler is 61.5 Kg/cm 2 pressure and 496 oC temperature. The Flue gas is discharge in atmosphere after E.S.P. through Chimney. The Steam leaving the Boiler is passed through Turbine. The Turbine erected at this station is a two-cylinder machine. The heat energy available in the steam is converted in to mechanical energy, thereby rotating the Turbine at 3000 R.P.M. The Turbine is directly coupled to a generator which generates A.C. Power at 11 KV, 50 cycles / seconds



3.9 Power Generation Process Flow Diagram.



3.10 Raw material & Other Utilities

3.10.1 Raw Material: In a Power Plant Raw Material is required for Generation of Steam. As the proposed Modernization will be achieved by replacing the Existing Old Second Hand Turbines with new BHEL high efficiency turbine and no other component of the power plant will be changed, NO additional raw material will be required.

The Existing Material Balance is here as under: Name of Raw

Material Consumption

(TPA) Name of Output Material Output

(TPA) Coal 411600 Fly Ash 172200 Char / Dolochar 74400 Bed Ash 43050 Gasses & Burning Loss 270750 TOTAL 486000 TOTAL 486000

Source of Raw Material: SEML has entered into Fuel Supply agreement with South Eastern Coalfields Ltd., Bilaspur and the balance quantity of coal is being cratered by e-auction.

Name of Raw Material Quantity (TPA) Source Coal 411600 SECL/E-auction

Char / Dolochar 74400 Captive Sponge Iron Plant

3.10.2 Water Requirement:

The proposed Modernization will be achieved by replacing the Existing Old Second Hand Turbines with new BHEL high efficiency turbine.

The existing Boilers will be utilized for steam generation. As number and capacity of boilers is not changed, the quantum of Steam Generation will remain the same, there will be no additional water requirement.

There is no change in water system of Turbine.



The existing Water Balance is as under:

Units / Purpose Daily water make up

Evaporation losses &

Consumption

Remaining waste water

Cooling (Make Up) 7,345 7,286 59

Boiler feed 391 368 23

DM unit & softener 108 38 70

Dust Suppression 48 48 - Plantation 170 170 - Domestic 85 13 72

Total 8,147 7,923 224

3.10.3 Energy including Electricity and Fuel: No additional Fuel/Electricity is required for the proposed Modernization. The existing requirement is as follows: Fuel: 3-5KL LDO/HFO Source: Local Market Power: Around 10% of Generation Source: Captive/CSPDCL

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

Management/disposal

3.11.1 Solid Waste Management Ash is generated as a result of burning of Coal and Char/Dolochar for heating the boilers. As increase in power generation capacity is achieved only by installing higher efficiency turbines without in quantity of fuel fired. No additional Solid Waste will be generated.



The solid wastes to be generated and scheme for their Management/disposal are as under;

Name of Solid Waste

Quantity (TPA)

Method of Collection

Utilization

Fly Ash 172200 Pneumatic conveying system followed by silos

Utilized as Raw material in Captive Fly Ash Brick Block and Tiles Manufacturing Plant and Sold to Cement Plant

Bed Ash 43050 Pneumatic conveying system followed by silos

Utilized as Raw material in Captive Fly Ash Brick Block and Tiles Manufacturing Plant

3.11.2 Waste Water Generation and Disposal.

Out of the total water requirement of 8147 KLD, 224 KLD of waste water is being/will be generated. The Waste Water Generation and the method of its disposal are as under:

Units / Purpose Waste Water Generation

Disposal Method

Cooling (Make Up) 59 Dust Suppression & Plantation

Boiler feed 23 Dust Suppression & Plantation

DM unit & softener 70 Dust Suppression & Plantation

Domestic 72 Soaked in Soak pit Total 224 **



CHAPTER-4

Site Analysis

4.1 Connectivity The existing Power Plant is located at village: Siltara, Tehsil: Dharsiwa, Dist: Raipur, Chhattisgarh State. The nearest city from the site is Raipur which is around 25 KM. The nearest railway station is Mandhar on Mumbai – Howrah main line which is around 1.5 KM. Nearest airport is at Raipur which is 25 KM from site. The nearby sea port is Vizag – 500 KM. The site is connected to National Highway-200 which is 5 KM from Site.

4.2 Land Form, Land use and Land ownership

Company has been allotted 167.94 Acre of land at Phase-I, Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex. The proposed modernization will be achieved by replacing the old low efficiency turbines with new high efficiency turbines. No civil work is involved in the proposed Modernization and no additional Land will be required.

4.3 Topography - with map

The project site is fairly flat with trees/shrubs present at some places. There will not be much cutting and filling required for the proposed expansion project. The Topographical map of 10 km radius of the proposed plant site is attached below:



4.4 Fig-Topographical Map



4.5 Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ)), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ. Company is having 167.94 Acre of land at Phase-I, Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex which is industrial land.

For the proposed modernization will be achieved by replacing the old low efficiency turbines with new high efficiency turbines. No civil work is involved in the proposed Modernization

There is no National Park, Wildlife Sanctuaries, and Forests in 10 KM radius from our existing pellet and ISP site.

Nearby Eco-sensitive zones- Nil Nearby Elephant/Tiger Reserves-Nil Migratory Routes- No

4.6 Existing Infrastructure Good infrastructure is available in the vicinity of Plant; some of the key features are listed below:

1. Availability of NH-200 which is 0.5 KM away from proposed expansion project site. Same can be used for transportation of all kind of Plant Equipment, Raw material etc.

2. SEML is having its own Railway Siding in the adjacent premises around 1 KM

3. Availability of adequate Water Resources.

4.7 Soil classification Physical characteristics of soil are delineated through specific parameters viz. particle size distribution, bulk density, porosity, water holding capacity and texture.



The bulk density of the soil in the site ranged between 1.32 to 1.47 g/cc which indicates favorable physical condition for plant growth. The porosity and water holding capacity of the soils are in the range of 26.21 % to 33.27 % and 24.88% to 31.65% respectively. The soil in the impact zone has clayey structure with moderate water holding capacity.

4.8 Climatic data from secondary sources

Climatical data collected from Secondary source i.e. IMD Raipur. The details of data are tabulated below:-

Month

Temperature (oc) Relative Humidity (%)

Rain-fall

Min Max Min Max Mean January 27.7 13.5 62 39 12.2 February 30.3 16.2 55 31 20.4

March 34.7 20.5 41 24 23.3 April 39.2 25.1 36 21 15.1 May 42.3 28.9 35 22 16.8 June 37.5 26.8 61 49 193.6 July 30.3 24.1 85 73 391.8 August 30.1 24.1 86 73 393.6 September 31.0 24.1 82 74 249.4 October 31.2 21.5 73 60 62.4 November 29.1 16.0 63 46 7.8 December 27.5 13.2 62 43 1.8

The maximum wind speed of the area is 60 km/hr.

4.9 Social Infrastructure available

Siltara is the nearest village to plant. General social infrastructure like Samudayik Bhawan, School, hospital etc. is available in the village.



CHAPTER- 5

Planning Brief

5.1 Planning concept Type of industry: Power Plant

Transportation Facilities: National Highway-200 for transportation which is about 0.5 KM from Plant site connected by internal roads. Mandhar railway station is about 1.5 KM from proposed modernization plant site. The Company is having its own Railway Siding in the adjacent Mandhar Pellet plant premises.

Town and Country planning/Development authority: Gram Panchayat

5.2 Population Projection Total Population in 10 KM radius of site is estimated as 95022.

5.3 Land use planning (breakup along with green belt etc.) Company has been allotted 167.94 Acre of land at Phase-I, Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex. The proposed modernization will be achieved by replacing the old low efficiency turbines with new high efficiency turbines. No civil work is involved in the proposed Modernization and no additional Land will be required. The plantation and green belt development will also be taken care in the plant and the space reserved for plantation will be more than 33% of the total plant area. SEML will take-up massive green belt development by planting about 800 trees per acre. In view of above, SEML proposed to develop 15-20 meters wide green belt along the boundary wall inside the factory premises. Adequate plantation will substantially abate the dust pollution, filter the polluted air, reduce the noise and ameliorate the plant environment.



5.4 Assessment of Infrastructure Demand (physical & social). Basic infrastructure demand for nearby area would be first to have internal roads, availability of clean and pure drinking water, availability of good schools, availability of Hospitals, community halls, Sulabh Shauchalaya , easy and faster means of transportation and connectivity to nearby town and city, availability of uninterrupted electricity etc. are the present assessed demands for sustained and healthy growth of nearby area of site. Most of the infrastructure demand mentioned above comes automatically when industry of this magnitude comes in such area, systematic efforts shall be made to bring such facility in the surrounding area for all round physical and social development.

5.5 Amenities / Facilities For the social development in the area the company has planned to construct community halls, roads, provide drinking water etc. Company has already provided and will provide mobile medical van for the free treatment for nearby villagers. Time to time the company will also organize free eye checkup, cataract camp, free distribution of spectacles etc.



CHAPTER-6

Proposed Infrastructure

6.1 Industrial Area Company has been allotted 167.94 Acre of land at Phase-I, Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex

6.2 Green Belt The plantation and green belt development will also be taken care in the plant and the space reserved for plantation will be more than 33% of the total plant area. SEML will take-up massive green belt development by planting about 800 trees per acre. In view of above, SEML proposed to develop 15-20 meters wide green belt along the boundary wall inside the factory premises. Adequate plantation will substantially abate the dust pollution, filter the polluted air, reduce the noise and ameliorate the plant environment.

6.3 Social Infrastructure For the social development company will provide the arrangement of community hall, road, water, electricity etc. in the nearby villages. For the economical development the company will provide the employment as per requirement and individual’s qualification & eligibility.

6.4 Drinking Water Management The water system has already been established, water is being drawan from borewells and purchased from Chhattishgarh Ispat Bhumi Limited which caters to the drinking and sanitary requirements of plant personnel as well as laboratory and contingent users.



6.5 Sewerage system Fecal sewerage is collected through sewerage network from the plant and leads it to the sewerage treatment plant. The treatment plant shall consist of screen grit separator, primary sedimentation tank, activated sludge plant, secondary clarifier, sludge recirculation pump house etc. The treated effluent quality confirm to the Indian Standard for discharge to surface water.



CHAPTER- 7

Rehabilitation and Resettlement (R & R) Plan

SEML has been allotted 167.94 Acre of land at Phase-I, Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex which is industrial land. There was no displacement of people. Thus R & R issues are not applicable.



CHAPTER-8

Cost Estimates Estimated project cost along with analysis in terms of economic viability of the project Since the report includes a project which is already under operation the Cost of Project. Thus, for the established unit the Gross Capital Made has been considered as Cost of project and for the other two it is estimated based on enquiries floated, quotations received. The financing and pre-operative cost has been considered based on the proposed financial package. The estimated cost thus evaluated to be is Rs 5,273 Lac including pre-operative expenses, Interest during Construction and margin money for working capital requirements LACS. OF RS. SR.NO DESCRIPTION

I PLANT & MACHINERY a. Turbine 3,299 b. Electrical System 305 c. Cable & Battery Bank 62 d. Turbine Oil 56

SUB TOTAL (A) 3,722

II PACKING & FORWARDING - III TRANSPORTATION 51 IV ERECTION & COMMISSIONING 448 V CONSULTANCY FEES 42 VI CIVIL WORKS (Structure Modification) 200 SUB TOTAL (B) 740

VII PREOPERATIVE EXPENSES 236 VIII CONTINGENCIES 218



SUB TOTAL (C) 454 TOTAL PROJECT COST (A+B+C) 4,916

IX INTEREST DURING CONSTRUCTION 329 X MARGIN MONEY FOR WORKING CAPITAL 28

GRAND TOTAL FOR PROJECT COST 5,273 TO BE FUNDED AS UNDER EQUITY 1,582 TERM LOANS 3,691 TOTAL 5,273



CHAPTER-9

Environmental Management

9.1 AIR Fuel is being burnt in the FBC boilers. There is emission of Flue Gas as a result of burning of fuel. The flue Gas is cleaned in the Existing 3 Nos of ESPs. The Clean gas is than released from 2 stacks of 90 Mtr height each for proper dispersion in the atmosphere.

Online Continuous Stack Emission Monitoring System has already been installed for monitoring of PM, SO2 and NOx emission from the stacks.

Some emission is there due to transportation and handling required of coal. The following systems have been installed to control Particulate Matter Emissions:

1. There are five nos. of de-dusting systems installed at various transfer points for coal handling.

2. Water sprinklers have been installed at various locations.

3. Dry Fogging System has been installed for dust suppression.

4. All the conveyor belt are Covered with GI sheets.

5. All the internal Roads have been made Pucca.

9.2 Solid Waste Management Ash is generated as a result of burning of Coal and Char/Dolochar for heating the boilers. As increase in power generation capacity is achieved only by installing higher efficiency turbines without any increase in quantity of fuel fired. Hence, No additional Solid Waste will be generated.

The solid wastes to be generated and scheme for their Management/disposal are as under:



Name of Solid Waste

Quantity (TPA)

Method of Collection Utilization

Fly Ash 172200 Pneumatic conveying system followed by silos

Utilized as Raw material in Captive Fly Ash Brick Block and Tiles Manufacturing Plant and Sold to Cement Plant

Bed Ash 43050 Pneumatic conveying system followed by silos

Utilized as Raw material in Captive Fly Ash Brick Block and Tiles Manufacturing Plant

9.3 Waste Water Generation and Disposal. Out of the total water requirement of 8147 KLD, 224 KLD of waste water is

being/will be generated. The Waste Water Generation and the method of its disposal are as under:

Units / Purpose Waste Water Generation Disposal Method

Cooling (Make Up) 59 Dust Suppression & Plantation

Boiler feed 23 Dust Suppression & Plantation

DM unit & softener 70 Dust Suppression & Plantation

Domestic 72 Soaked in Soak pit Total 224 **

9.4 Noise abatement

Noise from compressor, fans, centrifugal pumps, electrical motors etc. is being kept in control so that the ambient noise level shall not exceed 75 dB(A) during day time & 70 dB(A) during night time. Noise pollution control measures is being provided in respective departments by way of providing silencers, covers & proper selection of less noise prone machinery and by development of green belt.



9.5 Occupational Safety and Health For occupational Safety in the proposed If Plant, the following has been provided- (I). Electrical interlocking System of Pollution Control System

(II). Inspection and Maintenance of Pollution Control System only after getting official shut down or with the permission of authorized officer.

(III). Provision of rubber mats around the electrical panels.

(IV). Fire barriers at appropriate places.

(V). Provision of all safety measures like use of safety appliances, safety training, safety awards, posters, slogans related to safety etc.

(VI). Training of employees for use of safety appliances and first aid.

9.6 Green Belt Development

The plantation and green belt development will also be taken care in the plant and the space reserved for plantation will be more than 33% of the total plant area. Land has been reserved for green belt development. Sarda Energy & Minerals Limited will take-up massive green belt development in the premises by planting about 1500 trees per Ha. Adequate plantation will substantially abate the dust pollution, filter the polluted air, reduce the noise and ameliorate the plant environment.

In order to green belt development, we have already planted about 1,17,237 trees like Teak, Jetropha, Shisham, Spoethodia, Karanj, Casia, Samia, Molshree, Arjun, Bahera & Gulhohar etc in our premises and outside i.e between our boundary wall and CSIDC road since from commissioning of the plant. In the year 2015-16, we have planted about 1200 nos. of saplings.

PART – B Proposed Expansion by adding: A. 4x15T Induction Furnace (2,25,000 TPA), with

LRF (30 T) & CCM (3Strand) B. 2,00,000 TPA Rolling Mill

SARDA ENERGY & MINERALS LTD. Project Report

Proposed Expansion by adding: 4x15T Induction Furnace with LRF & CCM and 2,00,000 TPA Rolling Mill

CHAPTER 1 Executive Summary

M/s Sarda Energy & Minerals Ltd (SEML) (Formerly M/s Chhattisgarh Electricity Company and Raipur Alloys & Steel Ltd.) had established and operating 4x15T Induction Furnaces with LRF & CCM for Production of Ingot/Billet and Rolling Mill for Production of 1,80,000 TPA Finished Steel (Bar/Wire Rod/Section). Proposed facilities:

Steel consumption has been steadily growing in the country. The main areas of consumption are in the field of housing, infrastructure, automobiles and consumer durables, engineering goods and applications. Looking into above, the Company has now envisaged of expansion of its existing steel plant by addition of: 1. 4x15 T Induction Furnaces (2,25,000 TPA Steel Billets) 2. Ladle Refining Furnace (30 Tons) 3. 3 Strand Continuous Casting (2,40,000 TPA) 4. Rolling Mill [2,00,000 TPA Finished Steel (Wire Rod/TMT)]

Production Capacity

S. No Description Capacity of project (TPA)

Existing Proposed Total 1 Steel Ingot / Billets 3,20,000 2,25,000 5,45,000

2 Rolling Mill 1,80,000 2,00,000 3,80,000 3 Continuous Casting 360000 2,40,000 6,00,000 4 Ladle Refining Furnace 40 T 30T 70T

PROJECT AT A GLANCE Company’s Details Company’s name : SARDA ENERGY & MINERALS LIMITED. Date of incorporation : 23rd June 1973 Registered Office

: 73/A, Central Avenue, Nagpur‐440018 (Maharashtra)



Telephone No. Fax No. E-mail Address

: (0771) 2216618 (0771) 2216650 [email protected]

Promoters & Board of Directors Promoters

:

Shri K.K. Sarda.

Board of directors

:

Shri K. K. Sarda Shri Pankaj Sarda Shri P. K. Jain Shri A.K. Basu Shri P.R. Tripathi Shri R.K. Mehra Shri Gajinder Singh Sahni

Site Details Project Location

: Industrial Growth Centre, Siltara, Raipur (Chhattisgarh)

Nearest Railway Station : Mandhar – 0Kms.

Nearest Airport

: Raipur – 30 Kms.

Road Access : National Highway No.200 - 2 Km. Altitude Latitude Longitude Seismic zone

: : : :

289.5 Meters 21O 22’ – North 81O 41’- East Zone II in accordance with IS:1893(Part‐I):2002

Wind data Rainfall

: :

Max. 60 Kms. Per hour 40” – 60” (June – September)

Temperature -Minimum -Maximum

: :

7o C 46o C

Brief History:

Company had installed and commissioned 2x6 Ton Induction Furnace in the year 2001and the 2x15 Ton Induction Furnace was commissioned in the year 2006. The total consented production capacity 2x6 Ton Induction Furnace + 2x15 Ton Induction Furnace



(Steel melting shop) as granted by CECB was 200000 TPA Production of Steel Ingot/Billets. CECB further renewed the consent to operate till 30.09.2014 for production of 200000 TPA Steel Ingot/Billets. Since 2014 our 2x6 Ton Induction Furnace (Capacity 40000 TPA) were taken to temporary shutdown, these are very small furnace and no longer viable. In the financial year 2014-15, we have plan to remove 2x6 Ton Induction Furnaces and same was written of from the books of account. Vide our letter dated 27.01.2016, we requested to CECB for withdrawal of 2x6 Ton Induction Furnace (Capacity 40000 TPA) and accordingly revised the consent for 2x15 Ton Induction Furnace with overall capacity 160000 TPA for Production of Steel Ingot/Billets. Accordingly CECB has renewed our consent to operate vide its letter no. 5702/TS/CECB/2016 & 5704/TS/CECB/2016 dated 23.02.2016 under Water & Air Act and valid up to 30.09.2017 for only 2x15 Ton Induction Furnace of capacity 160000 TPA for production of Steel Ingot/Billet. FINANCIAL DETAILS OF THE PROJECT

Cost of the Project : Rs. 130 Crores

Expected date of commercial production of Proposed Billet Plant

: Oct. 2018



CHAPTER 2 Introduction of the Project Developer

2.1 Company Background

Sarda Energy & Minerals Ltd. (Formerly Chhattisgarh Electricity Company Ltd.), Incorporated on 23rd January 1998, is a Public Limited Company. The company has a Pellet plant of capacity 0.6 MTPA. The Company had installed 20 MW coal based thermal power plant, which commenced operations in the year 2001, gradually the capacity of power plant has been increased to 81.5 MW. The Company also installed five 9 MVA Submerged Arc Ferro alloys furnaces in phases to use captive power from power Plant and to have maximum realization for the power generated presently total capacity of plant is 45 MVA, which makes company the second largest producer of manganese based Ferro Alloys in the country. The facilities are installed at Industrial Growth Centre, Siltara, Raipur over an area of about 70 acres. Chhattisgarh Electricity Company Ltd. has got merged with Raipur Alloys & Steel Limited as per the orders of Hon’ble High Court of Chhattisgarh, Bilaspur dated 11th May, 2007 & the name of Raipur Alloys & Steel Limited has also been changed to “Sarda Energy & Minerals Limited” (SEML) as per Fresh Certification of Incorporation dated 2nd August 2007. Liberalization of economy by the Government, throwing open for manufacturing of Iron and Steel including mining of iron ore, coal and other related minerals to private entrepreneurs, provided an avenue for further growth in this segment to SEML. Company is a industrial house to set up a modern integrated steel plant at Siltara Industrial Estate, Raipur. The steel plant uses non-coking coal for sponge iron production of 79,200 TPA, further it has expanded to 4,60,000 TPA sponge iron production. Initially for meeting its requirement for 79,200 TPA sponge iron, SEML obtained a mining lease for iron ore situated at Dongarbor in the Rajnandgaon District, to produce 2.0 lakhs TPA. After expansion of sponge iron plant to meet its requirement of iron ore, the company has increased production capacity of Dongarbor Iron Ore Mine from 2.0 lakhs TPA to 15.0 lakhs TPA for extraction of iron ore in the year 2007. Company has been allotted a captive coal block at Karwahi near Tamnar, District- Raigarh, and Chhattisgarh State to produce 1.2 Million TPA coal. Company is having underway project for installation of 1.1 Million TPA Integrated Steel Plant and 60 MW WHRB Power Plant at Siltara Industrial Growth Centre, Mandhar, and Raipur.



Present Manufacturing facilities: The present manufacturing facility of the Company is situated at Phase-I, Siltara Industrial Growth Centre, Siltara, Raipur and other districts in Chhattisgarh and comprises of the following: S.N. Facility Capacity

1 Sponge Iron 4,60,000 TPA (with WHR facility)

2 Steel Melting 3,20,000 TPA 3 Ferro Alloys 5 X 9 MVA Furnaces ( 90,000 TPA) 4 Power Plant 81.5 MW 5 Rolling Mill 1,80,000 TPA 6 Pellet Plant at Mandhar 6,00,000 TPA 7 Iron Ore Mine at Rajnandgaon 1.5 Million TPA

Patent The Company is marketing TMT bars under its registered trademark “Hytech” which has got tremendous response from the corporate sector due to its quality. The company has also got Patent for its Special Design Steel Bar that is registered in class 25-99 at design no. 198260. The patent is valid for an initial period of 10 years and may be extend for a further period of five years. Capital Structure The Authorized capital of the Company is Rs. 50 Crores and the present issued and paid up capital is Rs. 36.02 Crores. Bankers The Company is banking with Union Bank of India, Bank of Baroda, Axis Bank, State Bank of India and RBL Bank under consortium. Listing The Company is currently listed on the Bombay Stock Exchange Limited under scrip code 504614 and on the National Stock Exchange of India Limited under scrip id. SARDAEN. Credit Rating Short Term Rating given by CARE is “PR+1”, the highest rating.



Long Term Rating given by CARE is “A+“. Shareholding Pattern The promoters of the Company hold around 71.20% shares and the remaining is held by FII’s, Banks, Corporate Bodies and public.

2.7 Management

Board of Directors: Kamal Kishore Sarda, aged 64 years, B.E.(Mech.) is Chairman & Managing Director of the Company. He has more than 40 years industrial experience and has a brilliant track record. He stood 1st in SSC Merit in M.P. and 2nd in B.E. (Mech.) Merit. He has also completed course on Strategic Management from IIM, Ahmadabad. He has traveled extensively across the world to study & observe new developments & trends in the industry. He is the Ex-Chairman of CII, Chhattisgarh Chapter.

Mrs. Uma Sarda aged 58 years, is graduate in Arts (Home Science). Mrs. Uma Sarda is attached to Friends of Tribals Society an NGO which works for the primary education of the tribal children and health care of tribal people of Chhattisgarh. Apart from the above, she is also a participant in various social activities in and around Raipur. She is also on board of other companies.

Pankaj Sarda, aged 37 years is an Industrial Engineer from Nagpur University and has also completed Masters’ Degree in Science in Industrial Administration from Purdue University. He has an experience of 7 years in the field of Corporate Affairs and Management. He has been appointed as Whole time Director W.e.f. 1st November, 2007.

Rakesh Mehra, aged 64 years, FCWA, is Ex-General Manager of MPAVN. He is a Financial Consultant and serves as a Professional director on the Board of many Companies. He was Ex-General Manager of Madhya Pradesh Audhyogik Vikas Nigam (MPVAN) and has more than thirty years of experience in the field of finance and accounting.



Asit Kumar Basu, aged 67 years is B.M.E. with rich experience over forty years in the field of finance. He is Ex-CGM, IDBI. He provides his expertise to the Board on financial matters related to the Company.

Prabhakar Ram Tripathi, aged 73 years, is an authority on mine management and mineral Grinding. He earned honors in Bachelors of Science in Mining Engineering from Indian School of Mines, Dhanbad, Jharkhand, India. He also earned his First Class Mines Manager's Certificate under coal mines regulation. Former Chairman & Managing Director of National Mineral Development Corporation (NMDC), he has more than 47 years experience in the field of mining and related activities. He is recognized as a leading management practitioner in India and has also contributed to development of management excellence through association with All India Management Association and National HRD Network

G.S. Sahani, aged 70 year is a 1971 IAS officer of Madhya Pradesh Cadre. He has done his graduation from Punjab University in Political Science and History and post graduation in Public Administration from University College of Swansea, Cardiff University, UK. A Former Director General of Shipping, Govt. of India and Former Secy. (Coordination), Cabinet Secretariat, Govt. of India.

Mr. C.K. Lakshminarayanan, aged 68 year has completed his Bachelor Of Technology degree. He had a long career with various organisations at various positions.He worked as a Plant Engineer for 8 years with Madras Petrochem Ltd.Thereafter he worked with Industrial Development Bank of India, firstly in Project finance and then in Investment Banking. Lastly, he worked as President and CEO of ST-CMS Electric Company Pvt. Ltd., which is operating a 250 MW IPP.

Mr. Jitender Balakrishnan aged 67 year has done B.E. (Mech.) from National Institute of Technology, Madras University and has also done Post Graduate Diploma in Industrial Management from Bombay University. He had a long career with IDBI Bank Group serving in various positions before retiring as Advisor in May 2010. He has wide experience in the sectors like, Oil and Gas, Refineries, Power, Telecom, Airports, Roads, Ports, Steel, Cement, Fertilizers, Petrochemicals, Hotel, Pharmaceuticals, Paper, etc.

Padam Kumar Jain aged 53 years, is a senior Chartered Accountant and company secretary with more than 28 years industrial experience with various industrial units. He is whole time director of the Company looking after Corporate Finance. He is in the



capacity of a professional director and guides the company on corporate finance, co-ordination with Banks and Financial Institutions and also investment activities.

2.2 Demand & Supply Forecast Before setting up any plant, the prime criterion is whether there is sufficient demand for the product in the market. Despite the current slump in the industrial industry and resultant effect on The steel industries in general, we are optimistic as there shall be no problem regarding off-take of our products. With the existing market already desires the much quantity of Alloy & Carbon Steel as followed by poor condition of steel units in state due to uneconomic power. We are having with us our own power generating unit and more ever so because of its lower cost of production as compared to any other similar units. The sponge iron manufactured in our unit is the main raw material for production of steel and the same will be utilized in Induction Furnace. Also, other Raw material suppliers are located nearby so cost of production will be very low. There are numerous buyers of these products in this area as it is well known (say second largest) area for rolling steel units in Asia 2.3 Cost of Project The estimated cost of the proposed project is Rs 130.00 Crores including pre-operative expenses and margin money for working capital requirements. (Amount in Lacs) Particulars Cost Land and Site Development 650 Civil Work 1300 Plant & Machinery 10400 Preliminary Expenses 0 Consultants Fees 65

Pre-Operative Expenses/Interest 65

Margin Money on Working Capital 0 Contingencies 520 TOTAL 13000



The cost has been estimated based on enquiries floated, quotations received. The financing and pre-operative cost has been considered based on the proposed financial package. The Plant wise estimate of the Project cost is as under:

(Amount in Lacs) Sl. No Plant Amount

1 4x15T Induction Furnace with LRF & CCM 6000 2 Rolling Mill 7000

Total 13000



CHAPTER 3

Introduction of the Project

3.1 Introduction

M/s Sarda Energy & Minerals Ltd (SEML) (Formerly M/s Chhattisgarh Electricity Company and Raipur Alloys & Steel Ltd.) had established and operating 4x15T Induction Furnaces with LRF & CCM for Production of Ingot/Billet and Rolling Mill for Production of 1,80,000 TPA Finished Steel (Bar/Wire Rod/Section). Proposed facilities:

Steel consumption has been steadily growing in the country. The main areas of consumption are in the field of housing, infrastructure, automobiles and consumer durables, engineering goods and applications. Looking into above, the Company has now envisaged of expansion of its existing steel plant by addition of: 5. 4x15 T Induction Furnaces (2,25,000 TPA Steel Billets) 6. Ladle Refining Furnace (30 Tons) 7. 3 Strand Continuous Casting (2,40,000 TPA) 8. Rolling Mill [2,00,000 TPA Finished Steel (Wire Rod/TMT)]

Production Capacity

S. No Description Capacity of project (TPA) Existing Proposed Total

1 Steel Ingot / Billets 3,20,000 2,25,000 5,45,000

2 Rolling Mill 1,80,000 2,00,000 3,80,000 3 Continuous Casting 360000 2,40,000 6,00,000 4 Ladle Refining Furnace 40 T 30T 70T



3.2 Location (map showing general location, specific location, and project boundary and project site layout) with coordinates

Fig. – 3.2.1Map Showing General Location



Fig.- 3.2.2 Project layout Plan:



Fig.- 3.2.3Topographical Map Earmarking 10 Km. Radius from Project Site



3.3 Manufacturing Process

3.3.1 Steel Melting Shop (Induction Furnace, LRF & CCM) SEML wishes to increase the production capacity of Ingots/Billets by installing 4x15 Ton

Induction furnaces along with Ladle Refining Furnace of 30 MT and Three Strand

Continuous Casting Machine. SEML has 4x15 Ton Induction furnaces under operation.

The total capacity of Steel Ingots/Billets production will be 545,000 TPA after expansion.

3.3.2 Manufacturing Process of Induction Furnace Induction furnace works on the principle of Induction melting of scrap/sponge iron with

the help of electric power. An alternating electromagnetic field induces eddy current in

the metal so that the electrical energy converts into heat whose quantity depends on

the resistively of the charge. If the charge consists of metal scrap, chips and other metal

rejections then the eddy currents arise between separate pieces of charge because of

high contact resistance. So small charge pieces required increase frequency of current

that feeds the induction heater in order to speed up melting of the charge. Induction

furnaces operate on current of commercial frequencies (50Hz) or on current of higher

frequencies from 500 to 2000 Hz. Induction furnaces are beneficial in steel making for

low melting loss.

An induction furnace constitutes a single larger primary coil made of water-cooled

copper tube. The working voltage is impressed across the terminals of the coil. These

furnaces have a great much application for melting of Iron, Steel and Nonferrous.

This type of furnace has a rammed lining. The ramming material silica mass contains

should more than 96% silica and minimum of Al2O3 & Fe2O3. Before ramming the

material a steel template kept inside the furnace and rammed the material between the

template and the insulated coil of the induction heater. To minimize the consumption of



electric power and cut down the melting period the crucible wall must be as thin as

possible. During running the furnace one must keep watch on the state of lining because

it operates under most unfavorable condition. The inside of crucible lining is in contact

with liquid metal while its outside surface contacts the water-cooled induction.

Charging: - The pieces of scrap should be kept on the bottom gently to avoiding impacts

into a compact heap. The scrap pieces/ sponge iron should be in small size that provides

good compaction of the batch without leaving spacing between the charge and crucible

wall. This offer an advantage of quick melting of the charge with a minimum power

spent in the stage for the heat. The zone of a highest temperature during the meet lies

in the power part of the crucible therefore it is practical to place first high melting scrap

on the crucible bottom. Large and high melting pieces should stand parallel and close to

the crucible was while low melting components should be in the middle of the crucible.

Small capacity furnaces are loaded manually and the large capacity furnaces with the aid

of buckets.

Melting: - At the beginning of melting the furnace works for 5 to 10 minutes on low

power until the surge of current fed from the generator disappear. The furnace power is

then brought up to a maximum. The charge melts with the crucible held closed. When

the charge approaches the fluid stages then the solid pieces are pressed back with a

crow bar. The furnaces is then loaded to its capacity by adding small size of scrap as

soon as the charge melted, the slag is formed to protect the metal from oxidation and to

avoid reduce the melting loss. If the slag generates in excess it should be skimmed off

periodically, at the last to deoxidised the metal with Ferromanganese, Silico-manganese

and Ferro-silicon. Now the metal is ready to tap for either in ingot or billet casting.

Casting in ingot mould: - For casting Ingot the metal temperature should be around

1560 oC / 1570 oC in ladle. Liquid metal tapped from furnace to ladle by the help of



crane then the ladle in centered on the trumpet metal flows from the ladle bottom and

filled the ingot mould. Thus the ingot is ready.

Casting in B.C.M: - Steel for making billet, the temperature of liquid metal from furnace

to ladle, the final metal temperature in ladle should be 80 oC superheat from liquidious.

Liquid metal is storage in tundish through ladle then the tundish metal passes from the

various section of mould jacket that is as per requirement (100 X 100 mm, 125 X 125

mm, 160 X160 mm 200 X 200 mm) this is a continuous process, length of billet is cut as

per requirement. Process flow chart is enclosed.

Pollution Control Equipments

In order to control the air pollution in the induction furnace, dust extraction system will

be installed. It consists of suction hood, cyclone, wet scrubber etc. Suction hood mounts

on the head of furnace; the flue gases will be sucked through the hood.

The blower sucks the flue gases through hood along with pipe, which connected to the

cyclone and wet scrubber. The wet scrubber cools the hot gases of furnace through

water spray. The nozzles spray water uniformly and perform the fog. The cyclone and

scrubber separates the solid particles, dust and its fall down in the bottom of the water

tank. The cool and fresh air will be exhausting through the Air Vent, in which the dust

concentration will be less than 50 mg/Nm3.

3.3.3 Ladle Refining Furnace

The LF installation will be single station system with provision for arc heating, inert gas

stirring, and addition of ferroalloys and additives. The LF will be complete with the

transformer, Ladle stirring System Aluminum wire feeder, Carbon injecting device,

additives storage and addition system, Sampling and temperature measuring device .A

fume extraction and cleaning system consisting of bag filters, ID fan and chimney with

the related ductwork will be provided.



Auxiliary Equipment:

The auxiliary facilities required for the LF will be include the transfer cars, slag handling

facility, hydraulic and lubrication systems, Electrode nippling station.

Electrical Equipment

The electrical equipment for the LF will include the furnace transformers, circuit

breakers, surge arrestors, HT power supply cables and bus bars, HT switchgear, LT

switch gear, control desks, cabling and accessories.

Instrumentation and Automation A modern DCS process automation system shall be provided for control of process

functions, sequencing and interlocking and to execute safety controls. Specific features

shall include power demand control, electrode regulation and control, and charge

optimization. The system shall be microprocessor based complete with field instruments

comprising measuring units, transmitters, load cells, actuators, Programmable controller

and PC’s, and communication system

3.3.4 Continuous Casting Machine

Billet caster:

The billet caster shall be complete with ladle stand, mould assembly, Strand guide

segments and supports withdrawal and straightening system, mould cooling system,

Cut-off equipment incl. length measuring device, Marking machine etc. Requisite

dummy bar and facilities for Dummy bar disconnecting and a dummy bar receiver will

be included.



Auxiliary Equipment:

The auxiliary facilities required for the Billet caster will be included. This will include

operating platform, cooling bed, ventilation system for spray chambers, equipment for

collection and disposal of crop-ends, Repair and assembly facilities for moulds, and

segments, Tundishes, Tundish preparation facilities including tundish drying station,

Hydraulic system and Centralized lubrication system, scale handling system.

Electrical Equipment:

The electrical equipment for the caster will include the drives, HT switchgear, LT

switchgear, control desks, cabling and accessories.

Instrumentation and Automation:

A modern DCS process automation system shall be provided for control of process

functions, sequencing and interlocking and to execute safety controls. Specific features

shall include mould level control, computer aided quality control, and process

monitoring. The system shall be microprocessor based complete with field instruments

comprising measuring units, transmitters, load cells, actuators, Programmable

controllers and PC’s, ands communication system.

Manufacturing Process of Rolling Mill to Produce Finished Steel

Rolling mill of 2,00,000 TPA capacity will be installed in the existing premises of SEML.

The Billets from the Induction Furnaces will be used in our Rolling Mill for production of

TMT re-bars through direct hot billet charging to rolling mill.

(A) Bar Mill

The mill will be designed to produce TMT of size 8 mm to 36 mm. The input material for

the TMT mill will be billets



Process Description

The billets casted through the continuous casting machine will be send directly to

rolling mill through high speed roller tables so as to charge direct hot billets for rolling

without reheating the billets. The billets will be rolled through a series of roughing and

finishing stands and then passed through quenching unit (Thermax) to produce TMT

bars with defined physical properties and size.

The TMT rebars will be hot rolled from steel billets of 110-130 sqmm section, entering

into roughing stands and then passing through a series of countinuous stands and

finishing stands with intermediate shears and loopers to achieve the final size of TMT

bar.

The three major stages of conversion of steel billets into TMT rebars are:

1) Quenching: When a hot rolled bar leaves the final mill stand, it is instantaneously

quenched using a special water spray system (Thermax) at very high pressure in the

quenching box. This is done to harden the surface while the core still remains hot and

soft. This is a microprocessor based controlled cooling process

2) Self tempering: After leaving the quenching box, the core continues to supply heat

to the surface since it is relatively at a higher temperature. This causes the tempering

of the outer layer into a tampered structure.

3) Atmospheric Cooling: Atmospheric cooling of the bars are done in cooling bed for

normal cooling of the TMT bars to achieve ductile core and a strong outside layer

The final finished TMT bar will be carried to the shearing area where the TMT bars will

be cut into desired length. Then it will be forwarded through roller tables to counting

and tying/packing area where bundles of TMT bars will be made and then transferred

to stock yard for dispatch.



3.3.5 PROCESS FLOW CHART 3.3.5.1 Induction Furnace.



3.3.5.2 Rolling Mill



CHAPTER 4

Raw Material and Utilities 4.1 Raw Material

Induction Furnace

The basic raw material for production of Steel is Sponge Iron, Scrap etc. We have our own captive Sponge Iron Plant within the same premises. The Sponge Iron produced from our plant will be utilized for manufacturing of Steel. The other raw material i.e. Scrap will be available from local market. The Ferro Alloys will be available from our existing Ferro Alloys Unit.

The Material Balance is here as under: 4x15T (2,25,000 TPA)

S. No. Name of Raw Material Consumption 1 Sponge Iron 0.559 125,813 2 Scrap 0.447 100,650

3 PIG IRON/CAST IRON /Slag recovery Metal/Mill Scale 0.112 25,163

4 Silico-Manganese 0.015 3,375 TOTAL 1.133 255000

S. No. Name of Output Output 1 Ingot / Billet 1.000 225000 2 Slag 0.128 28845 3 Burning Losses 0.005 1155

TOTAL 1.133 255000

Rolling Mill

The Ingot/Billet Produced from the Proposed Induction furnace will be utilized for Manufacturing of Finished Steel (TMT/Wire Rod)

The company has envisaged direct charging of hot billet in the rolling mill and thus no fuel is required in the Rolling Mill..



The Material Balance is here as under: Rolling Mill

S. No. Name of Raw Material Consumption Per Ton of Product TPA

1 Billet 1.035 207684 Total 1.035 207660

S. No. Name of Output Output Per Ton of Product TPA

1 Rolled Product 1.000 200000 2 Miss Role 0.207 415 3 End Cutting Scrap 1.449 2898 4 Mill Scale 1.449 2898 5 Hot Out 0.725 1449

Total 1.035 207660

4.2 Utilities

4.2.1 Water:

The total water requirement of Induction furnace plant is 372 m3 per day and will be supplied by CSIDC, Raipur (from Kharoon River). This will be used for Cooling of equipment, Slag and domestic purpose. To order to conserve water minimize the makeup water requirements it is proposed to adopt re-circulating system for equipment cooling.

4x15T Induction Furnace (2,25,000 TPA) S. No. Facility Make Up water

requirement Evaporation Loss

Wastewater Generation

1 Water Softener 216 0 11

2 Cooling* 205 200 5

3 Slag Quenching 20 20 0

4 Domestic 12 8 4 5 Sprinkling & Dust

Suppression 5 5

Total 253 233 20 * Soft water Generated from water softener will be used for Cooling



Rolling Mill (2,00,000 TPA) S. No. Facility Make Up water

requirement Evaporation

Loss Wastewater Generation

1 Water Softener 106 0 6 2 Cooling System 100 99 1

3 Dust Suppression

3 3 -

4 Domestic 5 3 2 5 Plantation 5 5 -

Total 119 110 9

* Soft water Generated from water softener will be used for Cooling

4.2.2 Water Flow Diagram:

4.2.2.1 4x15T Induction Furnace (2,25,000 TPA)



4.2.2.2 Rolling Mill (2,00,000 TPA)

4.2.3 Electricity:

Power requirement will be catered from existing own power plant in the SEML premises. 11 KV shall be step down to 1 KV to cater the power requirement of Induction furnace. Low voltage auxiliary power load adopts 415 V, eliminating voltage adopts 220 v.

Comprehensive power consumption:

Particular Unit MW 4 Furnace 24000 24

1 LRF 2500 2.5

1 Rolling Mill 4000 4

Auxiliary+ CCM 1000 1

Total 31500 31.5

4.2.4 Land Requirement:



Company has been allotted 167.94 Acre of land at Phase-I , Industrial Growth Centre, Siltara, Raipur for establishment of Steel and Power Complex. Out of which 26,716 sq meters will be utilized for proposed Expansion Project. The land requirement break up is here as under: Particular Sq Mtr Ha. Induction Furnace (Including LRF & CCM) 8,400 0.84

1 Rolling Mill 9,500 0.95

Green Belt 8,816 0.88

Total 26,716 2.67

4.2.5 Man Power Employments both administrative & technical are easily available at Raipur. Raipur has high concentration of Industrial Plants but since most of them have been shut of due to uneconomic power so experienced technical persons are easily available here. Details of employees required are summarized in here with report, Total employment potential of unit is 396 No’s. Category-wise manpower requirement of the plant is indicated in Table given below. Category Nos Management 7 Tech Managerial 10 Tech Executive 25 Supervisory 10 Skilled 89 Semi Skilled 95 Unskilled 160

Total 396



CHAPTER 5

Environmental Management

5.1 Air There will be two major source of air pollution in the plant, fugitive emission from material handling & transfer points and Flue Gas from Stack. In order to control the air pollution in the induction furnace, dust extraction system will

be installed. It consists of suction hood, cyclone, wet scrubber etc. Suction hood mounts

on the head of furnace; the flue gases will be sucked through the hood.

The blower sucks the flue gases through hood along with pipe, which connected to the

cyclone and wet scrubber. The wet scrubber cools the hot gases of furnace through

water spray. The nozzles spray water uniformly and perform the fog. The cyclone and

scrubber separates the solid particles, dust and its fall down in the bottom of the water

tank. The cool and fresh air will be dispersed through the 2 number of Air Vent of height

30 Mtrs Each.

The junction / transfer points of material will be provided with adequate capacity of de-dusting system (cyclones) to control the fugitive emission.. Existing Internal roads shall be utilized for movement of man and material which is equipped with water sprinkling systems so that free dust does not become air-borne. 5.2 Water

The total water requirement of the proposed project is 372 KLD including 17 KLD for Domestic Purpose. Out of which 28 KLD of waste water will be Generated.

The Back-washing & General wash waste water generated from softener will be treated in Neutralization pit and then utilized for Plantation and Dust Suppression.



Cooling Blow Down water will be generated from the expansion project which will be treated in settling tank and utilized for Dust Suppression.

The Domestic waste water will be treated in Septic Tank attached with Soak Pit.

The detail of Waste water generation, its treatment and Utilization/disposal is here as under:

4x15T2,25,000 TPA) S. No. Facility Wastewater

Generation Treatment Facility

Utilization /Disposal

1 Back-washing & General wash

11 Neutralization Pit

Utilized for Plantation and Dust Suppression

2 Cooling 5 Settling Tank Utilized for Dust Suppression

3 Domestic 3 Septic Tank with Soak Pit

Soaked in Soak Pit

Total 19

Rolling Mill (2,00,000 TPA) S. No. Facility Wastewater

Generation Treatment Facility Utilization /Disposal

1 Back-washing & General wash

6 Neutralization Pit

Utilized for Plantation and Dust Suppression

2 Cooling 1 Settling Tank Utilized for Dust Suppression

3 Domestic 2 Septic Tank with Soak Pit

Soaked in Soak Pit

Total 9

5.3 Solid waste

The only Solid waste Generated from Induction Furnace will be IF slag.

Slag is being crushed in Slag crusher for recovery of metal and the non-metallic crushed IF slag is being used in making of blocks, Tiles, etc at our Block and Tiles manufacturing unit and also IF slag is being sold in the market

The Crushed slag will be used in Captive Bricks, Blocks and Tiles Manufacturing Plant as Raw Material.



All the solid waste generated from Rolling Mill will be recycled directly in Induction furnace. The Details of Solid Waste Generation and its disposal method are as follows: Sl. No Solid Waste Source Qty TPA

1 Slag IF 28845 2 Miss Role Rolling Mill 41400 3 End Cutting Scrap Rolling Mill 289800 4 Mill Scale Rolling Mill 289800 5 Hot Out Rolling Mill 144900

5.4 Noise Abatement Noise from compressor, fans, centrifugal pumps, electrical motors etc. will be kept in control so that the ambient noise level shall not exceed 75 dB(A) during day time & 70 dB(A) during night time. Noise pollution control measures will be provided in respective departments by way of providing silencers, covers & proper selection of less noise prone machinery and by development of green belt. 5.5 Occupational Safety and Health

For occupational Safety in the proposed IF Plant, the following will be provided- (I). Electrical interlocking System of Pollution Control System

(II). Inspection and Maintenance of Pollution Control System only after getting official shutdown or with the permission of authorized officer.

(III). Provision of rubber mats around the electrical panels.

(IV). Fire barriers at appropriate places.

(V). Provision of all safety measures like use of safety appliances, safety training, safety awards, posters, slogans related to safety etc.

(VI). Training of employees for use of safety appliances and first aid.



5.6 Green Belt Development The plantation and green belt development will also be taken care in the plant and the space reserved for plantation will be more than 33% of the total plant area. About 8816 m2 Land will be reserved for green belt development. Sarda Energy & Minerals Limited will take-up massive green belt development in the premises by planting about 1500 trees per Ha. Adequate plantation will substantially abate the dust pollution, filter the polluted air, reduce the noise and ameliorate the plant environment

feasibility project report - welcome to environment steam consumption would increase in power...

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