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TRANSCRIPT
PPRREE FFEEAASSIIBBIILLIITTYY RREEPPOORRTT
FOR
PROPOSED 2X150 KTPA/300 KTPA OF DUCTILE IRON SPUN PIPE
PLANT
AT
NAVELIM VILLAGE, BICHOLIM TALUKA,
NORTH GOA DISTRICT, GOA
Submitted to
Ministry of Environment and Forests
New Delhi
Project Proponent:
M/s. Vedanta Limited
(Formerly Sesa goa Limited)
Goa
Environment Consultant:
Vimta Labs Ltd. 142, IDA, Phase-II, Cherlapally
Hyderabad–500 051
[email protected], www.vimta.com
(QCI/NABL Accredited and ISO 17025 Certified Laboratory,
Recognized by MoEF, New Delhi)
April, 2016
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad
TABLE OF CONTENTS
Sr. No. Particulars Page No
1.0 Executive Summary 1
2.0 Introduction of Project 2
3.0 Project Description 9
4.0 Site Analysis 23
5.0 Planning 24
6.0 Rehabilitation and Resettlement (R&R) Plan 25
7.0 Project Schedule and Cost Estimates 26
8.0 Analysis of Proposal 26
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 1
1.0 Executive Summary
Vedanta Limited (formerly known as Sesa Sterlite Ltd) is India’s only diversified Natural
Resources Company. The company’s main businesses focus on zinc, lead, silver,
Aluminum, copper, iron ore, oil & gas and commercial power, while its operations
span across India, South Africa, Namibia, the Republic of Ireland, Australia, and
Liberia.
Vedanta Ltd has a portfolio of world-class, low-cost, scaleable assets that consistently
generate strong profitability and have robust cash flows. The company holds
industry-leading market shares across its core divisions
Our Plant is located in village Amona/Navelim, Taluka Bicholim, District North Goa,
state Goa, India. It is approximately 25 kms to the east of Panaji city and the nearest
domestic airport is Dabolim, Goa about 40 kms from our Plant. A double lane road
taking off from Amona to Navelim is running adjacent to the site. The National
Highway is approximately 10Kms from the site. The Pig Iron Plant-II is located in Goa
Industrial Development Corporation having total about 293Acres
We have the following facilities at our Plant;
• Three Blast Furnaces BF#1, BF#2 & BF#3 altogether having Pig Iron production
capacity of 832 KTPA
• Battery-I and II having Met Coke Production Capacity of 620 KTPA
• Two number of Waste Heat Recovery Power Plant having generation capacity of
60 MW (2 x 30MW)
We proposed to set up DI Pipe Plant of capacity 0.30MTPA either in one go or in two
phases, the Phase-I of 0.15 MTPA would be completed in 18months time and
construction of second phase would be taken up after commissioning of first phase.
The location of Plant is very adjacent to BF#3 in Pig Iron Plant-II premises, having area
200 x400M (19.76acres) including area for storage of finished products.
The site is situated within the geographical coordinates.
Sr No Latitude Longitude A 15° 30’ 52.89’’ N 74° 00’ 09.47’’ E
B 15° 30’ 55.70’’ N 74° 00’ 15.40’’ E
C 15° 30’ 44.75’’ N 74° 00’ 22.70’’ E
D 15° 30’ 42.10’’ N 74° 00’ 16.87’’ E
It is in the terrain which is having a slope from 40m to 10m and proposed to put the
plant at FGL of 25 m to optimise the cutting and filling of rocks.
Total water requirement will be 1200m3/day and the source of water is from Bandara
which is about 10km away from the Plant and connected with the pipeline. Make-up
water will be drawn from Bandara & stored in raw water sump. The permission to
draw the water upto 6000m3/day from Bandara has already been granted by
GWRD-Goa government.
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 2
DI Pipe Plant will require about 12 MW of power to operate the Electric/induction
furnaces, casting machines and other equipment. Required power will be sourced
internally from our 2*30MW heat recovery Power Plant. If planned to be installed in
two phases of equal capacity of 150 KTPA then,in Phase-I either pig iron received
from BF#3 will be re-melted into electric arc furnace/induction furnace/cupola or hot
metal will be directly used and proceed further for desulphurisation, scrap charging
etc, however, in Phase-II rail track will be laid from BF#3 to DI pipe plant for hot metal
transportation for better realisation and power saving. If depending on financial
viability a decision is taken to install 300 KTPA plant at one go then hot liquid metal
from Blast Furnace will be utilised as 90% raw material.
Manufacturing of DI pipe is a continuous sequential process involving several sub-
processes. The process starts with receipt of Pig Iron/hot metal/scrap, melting into
induction/electric arc furnace, desulphurisation, scrap charging and super heating
of molten metal in induction furnace. The process flow chart for production of DI Pipe
is given below,
2.0 Introduction of Project
Identification of project proponent
Sesa Sterlite, a Vedanta Group company is one of the world's largest global
diversified natural resource majors, with operations across zinc-lead-silver, oil & gas,
iron ore, copper, aluminium and commercial power. The name of the company has
been changed to M/s Vedanta Limited w.e.f. 31.03.2015 post issue of Fresh
Certificate of Incorporation issued by the Registrar of Companies, Goa, Ministry of
Corporate Affairs (MCA), Govt. of India
Vedanta Limited (Vedanta Ltd) is a diversified natural resources company, whose
business primarily involves exploring and processing minerals and oil & gas. The
Company produces oil &gas, zinc, lead, silver, copper, iron ore, aluminium and
commercial power and has a presence across India, South Africa, Namibia, Ireland,
Australia, Liberia and Sri Lanka.
Vedanta Ltd, formerly Sesa Sterlite Limited, is the Indian subsidiary of Vedanta
Resources Plc, a London listed company. Sustainable Development is at the core of
Vedanta's strategy, with a strong focus on health, safety and environment and on
enhancing the lives of local communities. Vedanta Ltd is listed on the Bombay Stock
Exchange and the National Stock Exchange in India and has ADRs listed on the New
York Stock Exchange.
Vedanta Limited (Formerly Sesa Goa Limited, the flagship company of Sesa Group) is
India's largest exporter of iron ore in the private sector. For the past five decades, the
Group has been involved in iron ore mining, beneficiation and exports, with a group
turnover of around Rs. 4900 crores. Over the last decade, it has diversified into
manufacture of foundry and SG grades of pig iron and metallurgical coke. The
Group operated a 320,000 TPY metallurgical coke plant and a 292,000 TPY pig iron
plant.
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 3
Sesa Goa Limited has mining operations in Goa and Karnataka.
Sesa Goa's Met Coke Division manufactures metallurgical coke. It has 84 coke ovens
with a capacity of 320,000 tonnes. Sesa has developed an Heat recovery
technology (called Sesa Goa Technology) to manufacture coke, compliant with
advanced global emission norms.
Vedanta Limited successfully commissioned its expansion project for the pig iron and
met coke manufacturing facilities. with the commissioning of the 450 m3 blast
furnace and 2 batteries of 36 coke ovens each, its pig iron production capacity has
increased to0.742 MTPA and met coke production to 0.6 MTPA. it has also
successfully commissioned the associated 1 mtpa Sinter Plant and 30 MW waste gas
based Power Plant (utilising Blast Furnace Gas and Coke Oven Flue Gas)
Need for the Project and its Importance to the country
Economic Growth
Indian economy is likely to grow in the range of 6.3 to 6.9 per cent in 2017-18 and the
outlook is very positive. The average consumer spending has increased significantly
which has fuelled demand for quality infrastructure services like roads, electric
power, transportation, water supply, sanitation, communication, etc.
Demand for pipes for supplying Water
Water is a precious resource in India because the country accounts for 16% of the
world population as against just 4% of global water resources. The water use
efficiency is low in the country compared to international standards. As in the
previous years, agriculture will continue to be the major demand segment for water
in India. However, the demand from industries is expected to grow faster than the
demand from agriculture and domestic sectors. It is understood that the use of water
in Indian industries is high due to a combination of factors such as obsolete process
technology, poor recycling and reuse practices, and poor wastewater treatment.
Use of water in industries is closely linked to the economy of a country. The major
water guzzling industries are pulp and paper units, thermal power plants, fertilizer
units, iron and steel plants, sugar plants, and textile units.
Estimates vary with respect to the requirement of water for industries. According to
the MoWR, the requirement will increase from 30 billion cubic metre in 2000 to 120
billion cubic metre by 2025. According to the World Bank, the water demand for
industrial uses and energy production will touch 228 billion cubic meter by 2025. As
per the Tenth Plan, the stipulated norms are 40 litres per capita per day (lpcd) of safe
drinking water within a walking distance of 1.6 km and at least 1 hand pump for
every 250 persons. The norm will be relaxed to 55 lpcd in states where the 40-lpcd
norm has been achieved already. The above-mentioned norms are quite
reasonable because it is reported that in many large cities, water withdrawal
amounts to 300 to 600 lpcd.
In contrast, the consumption in the developed countries of Europe and North
America had already touched 500-1000 lpcd by the turn of the last century. Water
demand projection varies from agency to agency. Consumption of water by 2020 in
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 4
different sectors as projected by Water Resources Division, Planning Commission is
given below.
Projected Water Consumption in 2020 (Billion cubic metres)
End Use Normal Pessimistic
Irrigation 640 602
Manufacturing 56 51
Domestic 57 57
Power 28 27
Total 781 737
According to a WHO-UNICEF Sponsored Study (India Assessment 2002-Water Supply
& Sanitation), the total water requirement by 2050 will be 1,422 billion cubic metre.
Tata Energy Research Institute (TERI) has estimated that the overall water demand
will virtually double from 564 billion cubic metres in 1997 to 1,048 billion cubic metre in
2047.
MoWR has assessed the water requirement at 694 cubic km in 2010, 784 cubic km in
2025, and 973 cubic km in 2050. As against the projected demand, the availability of
water in 2050 is estimated at 996 cubic km.
At the national level, it will be a difficult to increase the availability to the projected
levels as most of the water resources are concentrated in a few river basins.
Transporting huge quantity of water from like rivers, lakes, wells, and treatment plants
to millions of homes would require a reliable pipeline system that will serve for years
without leaks and contamination. The increase in demand for water will call for
enormous efforts to capture, preserve, and distribute available water equitably.
Urbanization
It is estimated that by the end of the 12th Plan in 2017, approximately 40% of the
country’s population will live in cities and towns. This fast pace of urbanization will
increase the demand for piped water supply. Thus, the increase in population
accompanied by the fast pace of urbanization will together contribute for the
growth in demand for pipes.
Improvement in Water and Sanitation Coverage of Government to provide drinking
water & sanitation to100% of the population:
Thrust of government to provide drinking water & sanitation to100% of the population.
Government’s focus to improve the urban infrastructure has increased significantly
during the last 10 years. The investment allocation to water supply & sanitation during
five year plan is INR 423 Bn.
• The year wise fund allocation growth rate in this five year plan is 21% which is higher
than the year wise growth rate of 15% during last five year plan
• The JNNURM scheme commenced during the five year plan is the main driver for
urban infrastructure development. JNNURM scheme is focused towards strengthen
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 5
the infrastructure in 63 cities, the other schemes UIDSSMT & AUWSP focuses on
other cities/towns
• Water PPP’s have emerged during the last 10 years & are fairly successful in India;
the central Government has planned to increase the number of PPP projects in-
order to support state water authorities in improving the system efficiency
• The depletion of fresh water sources is driving the need of desalination projects &
these projects are expected to drive the growth of urban water infrastructure in
the coming years. The desalination projects are being planned & ongoing in
certain coastal cities
Source: JNNURM Website & Frost & Sullivan Primary Research & Analysis
Demand Analysis for DI Pipes
The demand drivers for pipes in general and DI pipes in particular are:
Economic growth
Demand for water
Urbanization
Improvement in water supply and sanitation coverage
Awareness on safety and hygiene
Investment by the Central and State Governments in Water and Sanitation
schemes
Assistance from external agencies
Inter-linking of rivers
Export potential
Investment in Water Projects and Role of Government Bodies
The central government had given thrust to improve the urban infrastructure during
the last 10 years and have been implementing various programs & schemes in the
WSS sector. Apart from the state governments also funds & undertake various
schemes. The funds for certain WSS projects are pooled from international banks &
financial institutions (World Bank, JICA, ADB etc. Key WSS Programs in India JNNURM
(Jawaharlal Nehru National Urban Renewal Mission) UIDSSMT (Urban Infrastructure
Development Scheme for Small and Medium Towns) AUWSP (Accelerated Urban
Water Supply Programme) Program Description
Flagship program for improving urban infrastructure
Focuses on 63 mission cities
Program covers the cities & towns which are not covered under JNNURM
Focuses on improvement on urban infrastructure facilities & PPP projects
Aimed at extending WSS services in smaller cities & towns
Partly funded by central government & partly by state government/municipal
bodies
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 6
Government/municipal bodies: It is estimated that at the current rate of growth, in
about two decades, water demand in India and China together will be thrice the
world’s current consumption. Budgetary outlay for Indian government’s 12th 5-yr plan
2012-17 for water supply and sanitation is more than Rs. 255,310 crores which is
significantly higher than previous plan.
Increasing investment of government in water and sanitation projects, the main
driver for DI pipe demand is evident from the figure below.
External Aid
Water resources projects in India are supported by multilateral or bilateral aid, grants,
loans, and commodity aid from foreign countries as well as donor agencies such as
the International Bank of Reconstruction and Development (IBRD) commonly known
as the World Bank. During 2013, the Sian Development Bank has sanctioned projects
worth Rs 8800 crores for projects to improve drinking water and sanitation in major
cities like Delhi and Kolkata along with projects in Rajasthan. The National Ganga
River Basin Authority (NGBRA) has received one Billion USD financing from the World
Bank.
The Ministry of Water Resources, Government of India assists the state governments in
tying up external assistance from different funding agencies to fill up the resource
gaps.
Water resources projects have also been funded through bilateral support of France,
Australia, Canada, Germany, and the Netherlands
Industry Analysis
While the purchase of pipes in general has increased, the share of DI pipes in the
total purchase of pipes has increased significantly from 33% to 52%. The share of
other pipes has been either declining or stagnant. The plastic pipes used are
predominantly PVC pipes and recent increase in use of HDPE pipes in competition for
PVC pipes. The other pipes include GRP, BWSCC pipes, Hume pipes, stoneware
pipes, etc. GRP pipes, RCC pipes, and stoneware pipes are used predominantly in
sewerage applications. The increasing share of DI pipes obviously indicates its rising
acceptance by customers and its growing popularity. The increasing share of DI
pipes indicates that DI pipes are gradually replacing all other pipes, especially steel
pipes. The government bodies have virtually stopped purchase of CI pipes for
potable water supply and the existing CI pipelines are increasingly being replaced
by DI pipes. Plastic pipes and cement pipes (AC/RCC/PSC) are also being replaced
in urban and semi-urban areas; however, in rural water supply schemes they still exist
due to the low initial investment.
Preference of Pipe Materials
The choice of the pipe material, on technical grounds, is governed by two major
factors: the pipe diameter and the area of application, i.e., transmission or
distribution. The general preference of pipe materials for water supply projects are
available in three different diameter ranges and used in urban, semi-urban, and rural
areas. DI pipes are widely preferred in urban and semi-urban areas. In urban and
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 7
semi-urban areas, uncovered water is considered unsafe and it is mandatory to
provide piped water supply to prevent pollution and contamination of drinking
water. Moreover, in the urban and semi-urban areas, DI pipes are preferred because
they are the best suited in places where heavy traffic loads, digging for cable laying
and bridges/flyover, etc. are quite common. In diameter sizes above 600 mm, MS
pipes are preferred because the initial investment is less as compared to that of DI
pipes. DI pipes are preferred in the lower diameter sizes, for both high-pressure
transmission and low-pressure distribution system. However, the users are increasingly
considering the life cycle cost (LCC) rather than just the initial investment because
this factor is being focused in tender evaluation as well. The government
departments and organizations are well aware of the long-term economic benefits
of using DI pipes in water supply and sanitation projects.
Inter Linking of Rivers (ILR) Project
Inter Linking of Rivers (ILR) project is Government of India’s proposal to link 37 rivers
through 30 links, dozens of large dams and thousands of miles of canals, making it
the largest water project in the world. Once this project is set in motion, there will be
an unprecedented demand for not only DI pipes and fittings, but also services for
design, implementation, project management, and maintenance.
Export Potential
Total global DI pipe production is about 5.4 million TPA, out of which dependence on
import by various countries is about 500,000 TPA. Export ratio is 10 – 40%. Middle East
and Asia is everybody’s target. Low domestic capacity and production has been the
major constraint that inhibited exports of DI pipes from India. India has the
competitive advantage of being strategically located to cater to Asian, South Asian,
and Middle East countries. The Middle East is a very prospective region for DI pipes
because being water scarce, as the countries in the Middle East give special focus
on water supply and sanitation. During the last four years, India exported DI pipes to
as many as 37 countries of which the regular destinations have been Algeria, Brunei,
Hong Kong, Qatar, Singapore, Spain, Sri Lanka, Sultanate of Oman, and UK. Thus, DI
pipes will continue to be in good demand in these countries in the forthcoming years
as well.
Domestic Manufacturers of DI pipe
There are three major units engaged in the manufacture of DI pipes in India
I Electrosteel Castings Ltd. (ECL);
ii Electrosteel Steels Lts (ESL)
iii Jindal Saw Ltd. (JSL).
iv Tata Metalliks DI Pipes Ltd (TMDIPL)
v Lanco (Srikalahasthi Pipe Ltd) SPL
vi Electrotherm (ET)
vii Jai Balaji Group (JB Group)
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 8
viii Rashmi Metaliks (RML)
Electrosteel and Jindal Saw are the market leaders in the domestic market.
The total installed capacity (as on June 2015) is around 1.72 MT (Million Tonne).
However due to non operation of plants of M/s Electrotherm & M/s Rashmi
Metaliks, the actual capacity was 1.42 MT only.
There is an addition of capacity in the current FY 2014-15 by year of 0.3 MT
The average capacity utilization is around 60%, which may go up to 70% during
2016-17 and he production is likely to go up to 1.70 MT during 2016-17
Demand – Supply gap :
Based on past records, the demand for DI pipes used in a large way for the
transportation of water is expected to grow by 15 to 20 % year on year. The various
demand projections studies made by different national and international
institutions/organizations have estimated the demand of DI Pipes to increasing
rapidly.
Considering the present producers of Ductile Iron pipe plants in India, their current
production trends and known capacity expansion being planned, the demand
supply gap of DI pipes for next 11 years is shown below in Table-1.
Table-1
Demand of Ductile Iron Pipes in India (At 14 % CAGR)
Year
Deman
d in
million
tonnes
Capacity*
*
Productio
n at
Present
Trend
Gap (MT) vis-
à- vis present
production
trend
Gap w.r.t
100
%
production
at Rated
Capacity
Remarks
2014 1.20 1.115 0.7 0.50 0.09 2015 1.37 1.315 0.9 0.47 0.05 JS Cap
Addition 2016 1.56 1.505 1.06 0.50 0.05 TMDIP Cap
Add 2017 1.78 1.505 1.36 0.42 0.27 2018 2.03 1.505 1.66 0.37 0.52 2019 2.31 1.505 1.96 0.35 0.81 2020 2.63 1.505 2.26 0.37 1.13 2021 3.03 1.505 2.56 0.47 1.52 2022 3.48 1.505 2.86 0.62 1.98 2023 4.01 1.505 3.16 0.85 2.50
2024 4.61 1.505 3.46 1.15 3.10 2025 5.30 1.505 3.76 1.54 3.79
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 9
(v) Imports Vs Indigenous production:
With Make in India concept and accelerated growth potential of Indian economy,
utilising existing natural resources to produce hot metal and convert into Value Added
Products such as Ductile Iron Pipes is better option than spending Foreign Exchange
on import of Ductile Iron pipes.
(vi) Export Possibility:
There is a big potential for export of D.I. spun pipe especially to the Eastern Europe.
South America, Africa, Africa, South East Asia and other ASEAN & SARC countries
apart from traditional exporting countries of Middle East & Western Europe.
(vii) Domestic / Export Markets: Based on past records, the demand for DI pipes used in a large way for the
transportation of water is expected to grow by 15 to 20 % year on year. The various
demand projections studies made by different national and international
institutions/organizations have estimated the demand .of DI Pipes to increasing
rapidly.
The demand of Ductile Iron pipe is directly proportional to the investment made in
Water, Sanitation, Irrigation and waste water treatment by all the concerned agencies
of Central Government, State Government, Municipal Corporations, Local Bodies,
Private bodies, and international banks & agencies
(viii) Employment Generation (Direct & Indirect) due to project: The proposed project will generate additional direct employment of approx. 400
manpower including contract labour. It will provide new opportunities for local
people also resulting in indirect employment for more than 1000 manpower. Training
programs will be set up for the development of local community as per the work
requirement.
3.0 Project Description
Type of Project
Vedanta proposes to set up either 300 KTPA Ductile Iron pipe or 2 phases of 150 KTPA
Ductile Iron Pipe Plant within the existing Pig Iron Plant complex, which is a notified
industrial area.
Location
The plant site of the proposed Ductile Iron Pipe Plant of Vedanta DI Pipes Limited will
be located inside the existing plant site at Navelim village, Bicholim taluka, North
Goa district, Goa, about 5 km from Sankhali Town and 21.2 km from Mapusa.
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 10
The proposed site is located southwards of Mini Blast Furnace of Vedanta Limited
within the existing pig iron plant. National Highway NH-4A, which runs between
Panjim and Bangalore, runs at about 5.3 km from the proposed plant site in its WSW
side.
Road Linkages
National highway NH-4A, which runs between Panjim and Bangalore, runs at about
5.3 km from the proposed plant site in its WSW side. DI pipes will be shipped by road
or/and then through Marmugoa Port Trust (MPT)
Rail Linkage
Carambolim (Karmali) Railway Station is located at a distance of 8 km in WSW
direction from the plant boundary. DI pipes, however, are not proposed to be
shipped by rail.
Port
Marmagao port, the nearest port for the despatch of finished product is about 45 km
away from the plant. All export of DI pipe will be through this port.
The Dabolim Airport is located at a distance of 21 km in SW direction, connects the
city to the rest of the world by air.
The Index map and study area map are presented in Figure-1 and Figure-2
respectively.
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 11
FIGURE-1
INDEX MAP
Plant SitePlant Site
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
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VIMTA Labs Limited, Hyderabad 12
FIGURE-2
STUDY AREA MAP
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 13
Coverage of the Study Area
The study area of this project encompasses all areas, falling within a 10 km radius with
the plant site as centre.
Topography
The district has hilly terrain especially on its western side where lies the southern ends
of the Sahyadri range. The terrain is intersected by a number of rivers flowing west
wards and meet the Arabian Sea. These rivers provide network of internal water
ways. The important rivers are Mandovi, Zuvari, Terekhol and Chapora which are
navigable and as such most for the economy of this district. Inland waterways play
an important role in transporting of mineral ores from the mining sites.
Land & Terrain
The proposed plant area is located in a sloping terrain with an average elevation of
34 m above mean sea level (MSL). The area presents a gradually sloping topography
with Laterite structures covered with dense bushes and shrubs. The general slope in
the study area is about 1 in 50.
The present and proposed FGL of Blast Furnaces is indicated as 38 m. The
proposed location of the DI Plant will be located in the terrain which is having a
slope from 40m to 10m. It is proposed to locate the plant at FGL of 25 m to
minimize the cutting and filling of rocks. BF Hot metal will be transferred by rail track
to be provided in trench to suit the terrain near PCM and transported to DI plant .
Climate
The climate in the study area is typically warm and humid. From June to September
heavy rainfall is received every year from the southwest monsoon which ranges
between 2500 to 4300 mm. The year round temperature ranges from 22 to 37oC.
Water Bodies
Water Bodies in the radius of 15 km radius from the plant
1. Arabian sea - about 15 km, SW
2. Mandovi River – 0.5 km, West
3. Mapuka River - 13.4 km, NW
4. Karmali lake- 7.6 km, SW
5. Kudne River- 1.5 km, North
6. Zuvari River- 12.7 km, SSW
Industries
The major industries within the study area (10 km radius) are
Pre-feasibility report for Proposed 2x150 KTPA/300 KTPA of Ductile Iron Pipe Plant at Navelim village,
Bicholim taluka, North Goa district, Goa
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VIMTA Labs Limited, Hyderabad 14
1. 292 KTPA pig iron plant, 1 MTPA sinter plant 540 KTPA pig iron plant, 2x300 KTPA
coke oven plant and 2x30 WHRB power plant of Vedanta.
2. Planned phase-II, 450 KTPA pig iron plant, 300 KTPA coke plant, 1 MTPA sinter
plant and 30 MW WHRB power plant of Vedanta
3. Syngenta pesticide plant
4. Alcon cement plant
5. Desai cement plant
6. Iron ore mine of Sesa, Salgaonkar
7. Beneficiation plant of Damodar Mangalji
8. Small scale industries like Ulka sea food processing, Orgoa
9. Laterite stone quarries
10. Kundai Industrial estate
Sensitive Areas
Following are the sensitive areas in the study area
Dr.Salim Ali Bird Sanctuary- 14.3 km, West (for this sanctuary ESZ is 100 m)
Mhadei WLS: 9.5 km, NE (ESZ is 1 km)
Bondla WLS : 10.7 km, SE (ESZ is I km)
Old Goa Church- Approx 6 km
Mandovi river estuary- About 14 km
3.3 Project Description with Process Details
Manufacturing Process
The manufacturing process of DI pipe is a continuous sequential process involving
several sub-processes. The process starts with receipt, desulphurization, scrap
charging and super heating of molten metal in induction furnace; pipes are
centrifugally cast using molten metal; heat treatment follows in annealing furnace to
give ductility to the pipes cast; lining and coatings are carried out to manufacture
finished pipes.
A schematic process flow diagram is given in Figure-3.
Desulphurization
Sulphur content in the molten metal from Mini Blast Furnace (MBF) is reduced to a
level of 0.02 % as low sulphur level is a prerequisite for magnesium treatment.
Scrap Addition & Super Heating
Desulphurized molten metal is poured in the induction furnace. Scrap and Ferro
Alloys are added to arrive at the required chemical composition. Metal is super
heated to the desired pouring temperature.
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Magnesium Treatment
Magnesium is introduced in the molten metal to change the shape of the graphite
after solidification. Magnesium converts the flake shaped graphite to a nodular
shape. The nodular shape of graphite leads to better mechanical properties of
ductile iron.
Centrifugal Casting
Pipes are cast by continuously pouring liquid metal in rotating, water-cooled, metallic
moulds fitted in the spinning machine. Metal is poured at a fixed rate from the
holding hopper on to the rotating moulds.
Pipes get their extended hollow cylindrical shape through simultaneous rotation to
the moulds and downward traverse movement of the spinning machine.
Appropriate addition of inoculants is made to get the correct micro-structure and
good surface finish of pipes.
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Figure-3. A schematic process flow diagram
Heat Treatment
Pipes are heat treated in an annealing furnace to attain mechanical properties
stipulated by standards. Each pipe is subjected to annealing process to dissolve
cementite and formation of ferrite in the matrix. This results in the attainment of
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desired mechanical properties. Annealing is a four stage process involving heating,
soaking, rapid cooling and slow cooling. After annealing, mechanical tests are
carried out at a regular interval to check the ductility and tensile strength of the
pipes.
Marketing & Stencilling
Name and logo of the manufacturer, year of manufacture, class of pipe, quality
certificate number are marked on the external surface of the pipes using stencils.
Some of those marked information are requirements of the applicable standards.
Storage, Packing & Despatch
Finished pipes are stored in the stockyard in stacks normally in three ways, viz., square
stacks, pyramidal stacks and parallel stacks.
Pipes of less than DN 400 size are normally bundled after putting wooden bars
between pipe layers for the purpose of separating. Pipes are despatched in trucks
and trailers.
Support Processes
Socket Core Making
Sand core is needed to give the internal profile of socket during casting. One core is
required to manufacture one pipe as the core gets burnt in the production process.
Sand and binders are used in the ore shooting machines to manufacture cores.
Mould Maintenance
Mould maintenance involves three activities, viz., grinding, peening and welding.
Grinding removes heat cracks on moulds which appear during casting of pipes.
Peening makes the moulds’ internal surface rough to get desired external surface of
pipes. Welding is used to repair deep heat cracks on moulds which grinding cannot
remove.
Main Plant & Equipment
The proposed DI plant will have a capacity to produce 2x150 KTPA/300 KTPA of DI
pipes having a size range of DN 80 to DN 1200.
Manufacturing Facilities (Phase I) – (tentative)
1. Liquid Metal Holding 150 t : 1 no.(Optional)
2. Induction Furnace 20t x 3 crucibles (Dual Track type)
3. Magnesium Converter 5t x 2 nos.
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4. Casting Machines (total 5 nos.)
a. DN 100 – 300 : 2 nos.
b. DN 350 – 800 : 2 nos.
c. DN 800 – 1200 : 1 no.
5. Annealing Furnace 58 m long 40 tph : 1 no.
6. Core Making Equipment
7. Mould maintenance Equipment.
8. Inspection & QC equipment
9. Finishing Lines 2 no.(Duplex Station)
a. DN 100 - 400
b. DN 450-1200 mm
10. Coating Line : 2 no.(Duplex Station)
a. DN 80-400
b. DN 450 – 1200
11. Hoisting & Handling equipment (EOT Cranes, Electric Hoist, Chain Pulley Blocks)
12. Transfer Cars
13. DM Plant for Soft Water
Water cooling Recirculation System (Circulating Pumps, Cooling Tower, Pipes,
valves & fittings)
14. Drinking water & Firefighting
Raw Material Requirement
The Consumption of Raw Materials and Fuel for rated capacity of production of DI
Pipes are shown in the table-1.3
TABLE-1.3
SPECIFIC CONSUMPTION RAW MATERIALS & UTILITIES
Sr. No. Raw Material kg/t of Cat Pipe
1 Hot Metal 1083.0
2 MS Scrap 100-130
3 Ferro Silicon 10
4 Zn Wire 1.73
5 Bitumen Coal Tar 2.15
6 Magnesium 1.3-1.4
7 Sand for core making 55
8 Graphite Powder/ 0.67
9 Binder 1.3-1.4
10 Catalyst 0.27
11 BF Gas, nm3/t 500-600
12 Cement 30
13 Calcium carbide 14-15
14 Sand for Lining 130-165
15 Utilities - Power kwh/t 350.0
16 Utilities - Water - Make Up -m3/t 1.02-1.05 m3/t
17 Compressed Air, m3/t 70
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Raw Materials, Fuel and Production Balance
The material balance has been estimated for 1,50,000 t DI plant and is shown in
Table-1.4
TABLE 1.4
M A T E R I A L B A L A N C E
Input % t/h Out Put % t/h
HOT METAL 91.31% 20.58 Melting
Skull/Slag 7.14% 1.61
SCRAP/Pipe Rejets 6.53% 1.47 Rejections 6.52% 1.47
Other Ferrous Inputs
2.16%
0.49 Runner Sand Bag
& Slag
7.41%
1.67
To Casting Machine 100.00% Other Losses 2.04% 0.46
Coating & Lining
(Ave)
7.40% 1.67 Finished Pipe 84.29% 19.00
107.40% 24.21 107.40% 24.21
Material balance for 0.3MTPA DI Pipe Plant.
Material Balance
Input % t/h Out Put % t/h
HOT METAL
91.31%
41.16000
Melting Skull/Slag
7.14%
3.2200
SCRAP/Pipe Rejets 6.53% 2.94000 Rejections 6.52% 2.9400
Other Ferrous Inputs
2.16%
0.98000
Runner Sand Bag & Slag
7.41%
3.3400
To Casting Machine 100.00% 45.08000 Other Losses 2.04% 0.9300
Coating & Lining (Ave) 7.40% 3.35000 Finished Pipe 84.29% 38.00
107.40% 48.43000 107.40% 48.4300
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Energy Balance
The average energy balance per t of production of DI Pipe has been shown in
Table1.5
TABLE- 1 . 5
ENERGY BALANCE
Per t of DI Pipe
S No
Input (kWH) Output (KWH)
Power
Consumed
Percent Consumer Power
Consumed
Percent
1 350.00 100.00% Holding/Melting Furnace
& Converter
208.60 59.60%
2 Casting 14.00 4.00%
3 Annealing 14.00 4.00%
4 Moulding 12.95 3.70%
5 Core Making 2.63 0.75%
6 Zinc Coating 6.13 1.75%
7 Cement Coat 3.15 0.90%
8 Finishing Operations 3.12 0.89%
9 Pump House 16.59 4.74%
10 Compressor 41.83 11.95%
11 Hoisting & Handling 2.10 0.60%
12 Admin Office Lab Stores 0.60 0.17%
13 Illumination Shop, Area
Lighting, Utilities
21.00 6.00%
14 Dedusting 3.33 0.95%
15 Total 350.00 350.00 100.00%
Services and Utilities
Water Supply Facilities
Pipe making is a heat intensive process wherein a considerable quantity of cooling
water is required for control of metallurgical processes as well as for dissipation of
unutilized heat. In order to conserve precious fresh water demand, closed circuit
water re-circulation systems have been planned as far as possible in order to effect
extensive recycling and reuse of return water from plant processes. Industrial quality
clarified water will be used in most of the cases except induction furnaces where DM
water will be required. Cooling towers will be provided for cooling industrial hot re-
circulating water. Process water losses will be compensated by adding make-up
water.
Water Requirement
Total water requirement will be 1200 m3/day and the source of water is from
Bandara which is about 10 km away from the Plant and connected with the
pipeline. Make-up water will be drawn from Bandara & stored in raw water
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sump. The permission to draw the water upto 6000 m3/day from Bandara has
already been granted by GWRD-Goa government.
Circulating Water requirement for the proposed project will be 1183 m3
/h.
Total water requirement after expansion project will be supplied from
existing water supply network of M/s Vedanta Limited. The water
requirement for different processes is shown in the Table 1.6
TABLE 1.6
WATER REQUIREMENT
S
No.
Unit
Circulating Water Requirement
(m3/h)
Make up
water(m3/h)
Waste
Water Proposed Future
Expansion
Total
(m3/h)
Propose
d
Expansio
n
m3/h (Total)
1
Induction Furnace
300
300
600
2
2
2 Casting
500
500
1000
5
5
3
Annealing Furnace & Boiler
200
200
400
3
3
4 Zinc 15 15 30 0 0
5 HPTM
90
90
180
1
1
6
Cement lining
48
48
96
1
1
7 Coating
15
15
30
0
0
8 Curing 10 10 20 1 1
9 Hydraulics 5 5 10 0 0
10
Mis
c
0 2 2 2
11
Gardening, Road Sprinkling
5
5
4
13 Total
m3/h
1183 1183 2366 20 20 6
14
Make up
water Per
t
1.05
1.05
0.32
Water Recirculation System
The water recirculation systems will comprise the following main units:
Pump house & sumps;
Circulating water pumps & electrics;
Make-up water pumps & electrics;
Strainers;
Interconnecting piping;
Cooling tower; and
Emergency overhead tank for induction furnace.
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Make Up Water System
Raw water will be stored in make-up water sump. Make-up water will be pumped to
different consumers, sumps, etc. through MS pipeline network complete with pumps,
valves and fittings. The make-up water pumps will be housed in a proposed common
pump house for make-up cum drinking and fire fighting.
Drinking Water System
Raw water after necessary clarification and filtration will stored in the drinking water
storage tank and will be supplied to various consumers of the pipe plant by means of
drinking water piping network, complete with pumps, valves and fittings.
Fire Fighting Water System
The fire fighting water network will be provided with adequate number of yard
hydrants and in-shop landing valves to combat fire hazards in the plant. The piping
network will be provided complete with pumps, pipelines, valves, hydrants and
fittings.
Design Criteria
Efficiency, reliability and flexibility of operation and maintenance will be the guiding
criteria for the design of the water system of the proposed plant. Pumping systems will
be provided with adequate instrumentation, controls and process interlocks to ensure
reliability of operation and safety of the plant and personnel. Cooling towers for re-
cooling of circulating water will be cross-flow/counter flow induced draft with
recovery type fan stack. DM plant will be installed for supply of soft DM water to
induction furnaces. Emergency overhead tank will be provided for meeting
emergency water requirement of the induction furnaces.
Water Pollution Control & Conservation
Extensive recycling has been adopted in the design of plant water systems. Quality of
circulating water will be maintained through dosing of conditioning chemicals for
controlling corrosion, scale deposit and microbial growth. Waste water from
treatment plant and DM plant will be neutralized before discharge from the plant.
Through cascaded reuse of blow down, the water scheme ensures minimization of
waste water discharge from the industrial water circuits.
Blast Furnace Gas System
Blast Furnace (BF) gas will be used as fuel in the annealing furnace. Required BFG
(5,000–8,000 Nm3/h) shall be made available from BF#3 which will meet the fuel
requirement of annealing furnace. Balance requirement of fuel for heating/drying will
be met with LPG/BFG. The plant will be connected with the BF gas grid of our existing
Plant.
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LDO System
Power Requirement
DI Pipe Plant will require about 12 MW of power to operate the Electric/induction
furnaces, casting machines and other equipment. Required power will be sourced
internally from our 2*30MW heat recovery Power Plant. In Phase-I either pig iron
received from Bf#3 will be re-melted into electric arc furnace/coupola or hot liquid
metal will be transportedand proceed further for desulphurisation, scrap charging
etc, however, in Phase-II rail track will be laid from BF#3 to DI pipe plant for hot metal
transportation for better realisation and power saving. Depending on Financials, if at
one go 300 KTPA plant is installed then entire liquid hot metal will be utilised for DI pipe
production.
Quality Assurance
DI pipes need to conform to stringent quality standards as they are used to transmit
drinking water. Pipes are produced according to the stipulations of applicable quality
standards as below:
Indian standard - IS 8329: 2000, and
International standards – ISO:2531
International standards - BS EN 545: 2002
In order to attain stipulated specifications, stringent quality assurance measures will
be enforced at every stage of production which will include chemical analysis, visual
inspection, pressure testing, pipe thickness measurement, cement lining thickness
measurement, bitumen coating thickness measurement, physical testing, etc.
4.0 Site Analysis
The proposed 2x150 KTPA Ductile Iron Pipe Plant will be located within the existing
plant of Vedanta Limited at Navelim village, Bicholim taluka, North Goa district, Goa,
The majority of data on physiographic, geological features, infrastructure and
population have been collected from various reports, while data for soil, air, water,
noise and ecology was collected during field survey and monitoring. Climatological
data was collected from meteorological office. The data has also been compared
with data collected during study period.
Seismicity
According to IS : 1893 – 1984, the study area falls in Zone-III (which can be considered
as calm zone). There is no major earthquake episode recorded in the study area.
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5. Planning Brief
(i) Planning Concept (types of industries, facilities, transportation etc) Town
and Country planning/Development authority Classification:
This is ‘A’ Category Project as per EIA Notification 14-9-2006 and requires
EC.
(ii) Population Projection:
The additional manpower is around 400 direct & indirect for 300 KTPA DI Pipe
Project
(iii) Land use planning (breakup along with green belt etc):
Out of 104 ha land taken 33 ha land has been already developed as
greenbelt. DI Plant will be of around 20 acres are and situated within existing
land, which is Notified as Industrial Area.
(iv) Assessment of infrastructure demand (Physical as well as social):
Induction holding furnaces, core making shops, Mg treatment furnaces,
annealing furnaces, etc. mentioned in process flow chart will be set up either
in 2 phases of equal 150 KTPA or at a stretch 300 KTPA facility.
(v) Amenities / Facilities:
No additional amenities / facilities is required for capacity enhancement. The
existing amenities / facilities are adequate for the proposed DI plant
The existing social infrastructure includes the following.
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Bus Station;
Fire Station;
Senior Secondary School;
Shopping Complex;
Sports Infrastructure;
Self Help Groups;
Community Halls; and
Primary Health Care Centre. Hospitals are also there.
Drinking Water Management
Drinking water requirement needs will be met from overhead tank which will flow by
gravity to different consumer points. Potable water supply pumps will take suction
from filtered water tank.
Sewerage System
Proposed to either use Sewage Treatment Plant or treat sewage in septic tank-soak
pit
Industrial Waste Water management
Proposed project is designed for maintaining zero discharge except during monsoon.
The storm water and drains will be separately constructed to minimize storm water
contamination with process water.
Solid Waste Management
About 500 m3 of earth and rocks will be generated during the ground preparation
required which will be utilized within the plant premises itself.
Waste oil, used oil and other hazardous wastes will be safely stored in
drums/tanks/covered shed and sold to authorized recyclers.
Organic waste will be used as organic manure in the green areas. The municipal
waste will be given to authorized agencies for suitable disposal.
The waste generated due the proposed DI pipe plant will be handled as per the
existing practices. Sewage will be treated in existing sewage treatment plant. The
sludge will be used in green areas of the guest house and plant site.
6.0 Rehabilitation and Resettlement (R&R) Plan
The project is a brown field project. The entire land required for proposed DI pipe
plant is already in possession of Vedanta. The land is already is under industrial use
and does not have any settlement. Hence, there are no Rehabilitation &
Resettlement (R&R) issues.
7.0 Project Schedule and Cost Estimates
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Project Schedule
Project will be implemented in single phase:
The implementation schedule for the proposed project is 24 months from the date of
Environmental Clearance (EC). This includes 6 months for the preparation of Basic /
Detailed Engineering, 15 months construction period and 3 months for commissioning.
Capital Cost Estimates
The capital cost of the DIP expansion plant is estimated at Rs. 550 Crore. Phase -1 of
150 TPA will be executed immediately after grant of EC. Phase -2 will be installed at a
later stage. Cost of Phase-1 is Rs 300 Cr and Phase -2 is Rs 250 Crs. Depending on
financial viability, entire 300 KTPA DI plant can be isnatalled at one go.
Expenditure on Environment in Project Cost
The overall cost on measures for the environment protection will be about 5 % of the
total project cost. The cost will include the plantation cost, setting up of emission
control and environmental monitoring equipments and stations and development of
the green land as per the government rules.
8.0 Analysis of Proposal
Financial Benefit
This will also generate revenue to the state government as well as central
government in the form of taxes and duties. The people around the region will get
direct and indirect employment thus improves the financial status
Social Benefits
The proposed project shall proactively participate in the upliftment of socio
economic index of the communities around the project site by way of financial and
administrative support. The project will open up employment opportunities, directly
and also indirectly. There shall be opportunities for entrepreneurs to engage in many
service sectors directly or indirectly associated with the project.
The CSR approach of the company shall be towards sustainable livelihood
management of the community around. There shall be focus on education, health,
sanitation, drinking water, agriculture, water shed management, culture identity
preservation, tribal welfare, welfare of socially weaker sections and marginalized
people.