0

Pre Feasibility Report

For

M/s Om Smelters & Rollers Pvt. Ltd. (Mini Steel Plant)

At Village Bharthari, Tehsil Chinor, Distt. Gwalior

(M.P.)

Project Proponent M/s Om Smelters & Rollers Pvt. Ltd.

Prem Prakash Sadan, Behind Radhika Mandapam, Gwalior Road, Jhansi (U.P.)

1

Contents

S. No. Item Page No.

1. Executive Summary 1

2 Introduction of Project/ Background information 3

3 Project Description 5

4 Site Analysis 10

5 Planning Brief 12

6 Proposed infrastructure 14

7 Rehabilitation & Resettlement (R&R) Plan 15

8 Project Schedule & Cost Estimates 16

9 Analysis of Proposal 16

2

PRE FEASIBILITY REPORT 1.0 Executive Summary

M/s Om Smelters & Rollers Pvt. Ltd. is registered company under the company acts having

their registered office at Prem Prakash Sadan, Behind Radhika Mandapam, Gwalior Road,

Jhansi (U.P.) The Company is engaged in production and trading of MS steel products. The

firm is controlled by its Board of Directors. The Project is located at Khasra No. 251, 274/2,

274/3, 283, 284, 285, 287/1, at Village Bharthari, Tehsil Chinor, Distt. Gwalior in Madhya

Pradesh. The area of project is 57060 sqm.

1.1 Salient features of the project

S. No. Particulars Details

1 Location Khasra No. 251, 274/2, 274/3, 283, 284,

285, 287/1, Village- Bharthari

1 Latitude 25059’25.28 to 25059’31.59” N

2 Longitude 78015’0.55” to 78015’10.13” E

3 Nearest Highway NH-75 (Gwi-Jhansi Road – 500 m. in E

4 Nearest Railway Line / Railway Station Anatpath – 4.6 km in SE

5 Nearest Village / Township Manpur – 700 m in NW

6 Nearest Airport Gwalior – 28.0 km in N

7 Nearest Major city Gwalior – 26.0 km in N

8 Nearest River Non within 10 km radius

9 Nearest Valley Non within 10 km radius

10 Ecologically Sensitive Zones (National

parks, Wildlife Sanctuaries)

Non within 10 km radius

11 Historical Monuments/ Archaeological

centers:

Non within 10 km radius

3

2.0 Introduction of the Project/ Background information

2 (i) Identification of project and project proponents:

The project is already in operation since October 2015 with installed capacity of 18,000 MTPA

to produce TMT Bars, MS Billets/Ingots, MS Angle Channel, Rolling Product, Missroll &

cutting. At present the industry has installed 1 Nos. of Induction furnace of capacity 10 ton. In

view of available infrastructure and increasing marketing demand and to sustain in market

the company is decided to increase the capacity of plant upto 80,000 MTPA MS Billets, TMR

Iron Bars by installing 2 more Induction furnace of 12 ton each.

Details of Directors

1- Shri Kapil Bansal, S/o Shri Mukesh Kumar Bansal

Prem Prakash Sadan, Behind Radhika Mandapam,

Gwalior Road, Jhansi (U.P.)

0510- 2471054

Email: omsmelter@gmail.com

Capacity

S. No.

Unit Product Existing

Existing Capacity

Product Proposed

Proposed Capacity

1. Rolling Mill, IF TMT Bars, MS Billets / Ingots, MS Angle Channel, Rolling Product, Missroll & cutting

18000MTPA TMT Bars, MS Billets / Ingots, MS Angle Channel, Rolling Product, Missroll & cutting

80000 MTPA

Note the end product will be TMT Iron Boars through the Billets.

2 (ii) Brief Description of Nature of the Projects

The proposal is for expansion of production capacity to manufacture TMT Bars, MS Billets /

Ingots, MS Angle Channel, Rolling Product, Missroll & cutting in Induction Furnace using

Sponge iron, Scrap & Ferro Alloys. The estimated project cost for expansion of project shall be

approx. 15.0 crores including existing and proposed.

4

2 .0 (iii) Need for the Project and Its Importance to the Country or Region

The proposed expansion project envisages expansion in TMT bars, Billets & Steel

Structures manufacturing unit. At present the market of TMT bars, angle,

channel, T-iron etc. is very good and the promoters of the company has decided to use

the benefit of market. The directors of the company are well financially sound and

have vast business experience in the steel-manufacturing sector.

Currently, demand for finished steel in India is estimated to be around 70 MT. This is

expected to more than double to 166 MT by 2020-21., this demand will mainly be

driven by the construction (real estate and infrastructure), automobile and consumer

durables sectors. During 2014 through 2015, India was the third largest producer of

raw steel and the largest producer of sponge iron in the world. The industry produced

91.46 million tons of total finished steel and 9.7 million tons of pig iron. Most iron and

steel in India is produced from iron ore. The Indian Ministry of Steel is concerned with:

the coordination and planning of the growth and development of the iron and steel

industry in the country, both in the public and private sectors; formulation of policies

with respect to production, pricing, distribution, import and export of iron and

steel, ferro alloys and refractories; and the development of input industries relating to

iron ore, manganese ore, chrome ore and refractories etc., required mainly by the

steel industry.

The capacity enhancement of the projects creates approx. 150 Nos. addition

employments to local people, and cater the demand and supply of the steel products

in the Jhansi - Gwalior Region of Madhya Pradesh and Uttar Pradesh. As in Gwalior

District of Madhya Pradesh only two mini steel plants are operating, and there is

scope and market for other manufactures to establish the mini steel plants which

reduce the transportation cost and reduce the traffic in the region.

2.0 (iv) Demand- Supply Gap:

The Demand for Steel is closely related to the growth in the Infrastructure/

Construction Sector. Consequently, Steel demand has been posting a steady growth

rate propelled by the increased thrust on Infrastructure Development and the higher

5

demand from the Housing Sector. This trend is likely to continue in the coming years

as Madhya Pradesh & Uttar Pradesh is required huge infrastructure development in

future.

2.0 (v) Imports vs Indigenous production:

The proposed project is expected to bring down the domestic merchants. All the raw

material are indigenously available, therefore no need of import.

2 (vI) Export Possibility

At present, there is no proposal to export of the products. Market of mini steel plant

are nearby vicinity within 200km-300 km.

2.0 (vii) Domestic / Export Markets

With the expected growth of Infrastructure/Housing Sectors the domestic market of

Steel is bound to grow. The export market may not see much increase.

2.0 (viii) Employment Generation (Direct & Indirect) due to project.

This proposed expansion will generate additional employment for about 150 people

by direct & 50 people for indirect employment which include officials, staff, skilled and

semi-skilled and indirect employment, in contract works & transport.

3.0 Project Description

3 (i) Type of Project including interlinked and interdependent projects, if any

This is the project of secondary metallurgy industry under B Category of EIA

Notification 14th 2016. The project has to appraised at State level but at this point of

time there is no SEIAA in the State of Madhya Pradesh, therefore the project is

submitted proposal to MOEF & CC. There is no interlinked project with is project.

6

3 (ii) Location (map showing general location, specific location, and project boundary & project site layout) with Coordinates

District/State Tahsil Village Khasra No. Area

Gwalior (MP) Chinor Bharthari 251, 274/2, 274/3, 283, 284, 285, 287/1,

57060 sqm

Total 57060 sqm

1 Latitude 25059’25.28 to 25059’31.59” N

2 Longitude 78015’0.55” to 78015’10.13” E

7

3.0 (iii) Details of Alternate Sites considered and the basis of selecting the proposed

site, particularly the environmental considerations gone into should be highlighted

No alternative site is Examine as the expansion will be carried out in the existing

factory premises, by installing two more induction furnaces.

3.0 (iv) Size or magnitude of Operation

The existing plant is in SSI Category with installed capacity of 18000 MTPA of TMT Bars

and others, after expansion the plant comes under medium scale category. The

additional investment of Approx. 4.0 Crores is required for expansion.

3.0 (v) Project Description with process details (a schematic diagram/flow chart

showing the project layout, components of the projects etc. should be given)

3.0 (vi) Raw material required along with estimated quantity, likely source, marketing

area of final product/s, mode of transport of raw material and finished product

S.No. Raw Material Qty (Existing)

Qty (Proposed)

Source mode of transportation

1 MS Scrap /Sponge Iron

20000 MTPA

88 000 MTPA Indigenously Available

By Roads 2 Ferro Alloys 180 MTPA 600 MTPA Indigenously

Available

3 Fluxes 180 MTPA 600 MTPA Indigenously Available

Product Details

FURNACE MELTING

HOT CHARGE FROM CONTINUES COSTING MACHINES

HOT ROLLING INTO TMT BARS IN MILL STAND

COOLING

STORAGE YARD AND DISPATCH

TESTING

8

1 TMT Bars, MS Billets / Ingots, MS Angle Channel, Rolling Product, Missroll & cutting

18000 MTPA

80000 MTPA - By Roads

3.0 (vii) Resource optimization/ recycling and reuse envisaged in the project, if any

should be briefly outline

The MS scrap shall be used as raw material and the waste cutting will be again

charged in the furnace. We will also recover the iron from the slag and reuse in

melting process. The spent oil which will generated from the DG set will be given to

Authorized Recyclers for making it useful lubricant.

3.0 (viii) Availability of Water its source, energy / power requirement and source should

be given

Power: Total Electrical Power Requirement - 26.25 x 106 kwh shall be meet by MPSEB,

the company shall also install one D.G. set of 1000 KVA equipped with acoustic enclosure.

Water: Total water requirement will be for two purpose mainly for construction and

operational purpose. The requirement is as follows:

Construction phase – 5 kld Source Groundwater

Operation Phase

Water requirement Existing Proposed

1 Cooling 20.0 kld 90.0 kld Ground water

2 domestic 3.0 kld 10.0 kld Ground water

Waste water generation

1 Cooling 0.00 0.00

2 domestic 1.5 kld 8 kld

3 .0 (ix) Quantity of wastes to be generated (liquid and solid) and Scheme for their management/ disposal

Solid waste generation and management:

The main solid waste from the Induction Furnace process is slag @12000 ton per

annum. A unit of iron recovery from slag has been installed and the recovered iron

shall be used with scrap to charge in induction furnace. The remaining part shall be

used for civil work & bricks manufacturing. Other Solid Waste Generation are mainly

9

plant dust, Mill scale , papers @ 5.0 Ton per annum is being Segregated at source

using dust beans and collection at “value yard” selling to local vendor

The other solid waste from STP in the form of sludge can be use as manure in

garden/plantation.

Liquid effluent

There will not be any process waste water (or) cooling water blow down generation

from the Induction Furnace, as closed circuit cooling system will be followed. The total

effluent quantity expected from the proposed project will be 8.0 cum/day of

domestic waste water.

The entire waste water shall be treated in Sewage Treatment Plant and the treated

waste water will be used for plantation, and dust suppression in factory premises.

The flow diagram of proposed STP of capacity 10 kld are as under:

Air

Parameters Inlet Out Let

pH 7-8.5 7-8.5

TSS 550 mg/l < 100mgl

BOD 200-250 mg/l < 30 mg/l

COD 800-900 < 250 mg/l

Raw Sewage

Screen Chamber

Equalization Tank (with Air Diffusers)

Oil & Grease Separator

Pressure Sand Filter

Chlorine Doser

Aeration Tank (with Air Diffusers)

Settling Tank

Recycle for Horticulture & Flushing

Sludge Recycle

Manure

10

3.0 (x) Schematic representation of the feasibility drawing which give information of EIA

Purpose.

The Plant is located on Survey of India Toposheet No. 54K/5, and EIA shall be prepared

on the baseline data of Air, Water, Soil, Noise and Socio economic within 10 km

radius and as per the points to be given EAC/SEAC

4.0 Site Analysis

4.0 (i) Connectivity Gwalior enjoys being at a very strategic position as being a main junction on New Delhi

- Chennai railroad and being on NH-3 and NH-75. Gwalior is surrounded by 3 Industrial

areas - Sitholi, Banmore and Malanpur.

4.0 (ii) Land Form, Land use and Land Ownership

Land Form

Land type is plain terrain.

Land use

The land use of the factory area is for industrial use and diversion of land from

agriculture to industrial use has been done by District Administration.

Land Ownership

The land is belong to M/s Om Smelter & Roller Pvt. Ltd.

4.0 (iii) Topography (along with Map)

The Plant is located on Survey of India Toposheet No. 54K/5. The Topography of the

plant area is almost plain.

Salient features within 10 km radius of the project are as under

S. No. Particulars Details

1 Location Khasra No. 251, 274/2, 274/3, 283, 284, 285, 287/1, Village- Bharthari

1 Latitude 25059’25.28 to 25059’31.59” N

2 Longitude 78015’0.55” to 78015’10.13” E

3 Nearest Highway NH-75 (Gwi-Jhansi Road – 500 m. in E

4 Nearest Railway Line / Railway Station

Anatpath – 4.6 km in SE

11

5 Nearest Village / Township Manpur – 700 m in NW

6 Nearest Airport Gwalior – 28.0 km in N

7 Nearest Major city Gwalior – 26.0 km in N

8 Nearest River Non within 10 km radius

9 Nearest Valley Non within 10 km radius

10 Ecologically Sensitive Zones (National parks, Wildlife Sanctuaries)

Non within 10 km radius

11 Historical Monuments/ Archaeological centers:

Non within 10 km radius

4.0 (iv) Existing land use pattern (agriculture, non agriculture, forest, water bodies

(including area under CRZ)), shortest distance from the periphery of the project to

periphery of the forest, National Park, Wildlife Sanctuary, Eco sensitive area, water

bodies (distance from the HFL of the river), CRZ. In case Notified industrial area, a copy

of the Gazette Notification should be given.

The existing land use of the area is industrial purpose, as the District Administration has

diverted the agriculture land for industrial purpose. 5.706 ha area is

There are no water body or stream is passing through the project area. No forest land is

involved in the project area of 5.706 ha, No National Park, Wildlife Sanctuary, Eco-

sensitive areas, Reserved Forests or CRZ within 10 km of the factory area.

4.0 (v) Existing infrastructures

The Plant is located 26 km from Gwalior town of Madhya Pradesh on NH 75, the all the

basic infrastructure like, Road, Electricity, Airport, Railways are available within 50 km

radius.

4.0 (vi) Soil Classification

Soil samples has been Collected from three different locations and analysed for the

purpose of EIA report. The analysis of samples are as follows.

S. No. Parameter Unit S1 S2 S3

1. pH - 7.09 7.23 7.91

2. Sand % w/w 21.5 12.1 16.7

3. Silt % w/w 61.2 72.3 64.9

4. Clay % w/w 17.3 15.6 18.4

12

5. Bulk Density g/cc 1.32 1.48 1.51

6. Available Nitrogen kg/ha 126.23 142.2 187.5

7. Available phosphorous as P2O5

kg/ha 20.3 19.2 15.02

8. Available Potassium as K2O kg/ha 105.2 111.5 156.2

9. Organic Matter % w/w 0.25 0.50 0.38

4.0 (vii) Climatic data from secondary sources

The climate in the region shows broadly four seasonal variations namely:

Winter : December – February

Summer : March – Mid June

Monsoon : Mid June – September

Autumn : October – November

Temperature

Maximum temperature recorded during summer season is 48°C. Minimum

temperature recorded is 4.2 °C January.

Rainfall

Maximum rainfall was received in July (216 mm) and August (240 mm). Scanty rainfall

was received in September (24 mm), October (15 mm), January (24 mm) and June (45

mm) months. No rainfall was received from February to May, November and

December.

4.0 (viii) Social Infrastructure Available

The social infrastructure like educational facilities (primary and higher secondary

schools), drinking water supply, post and telegraph, public transportation and

hospitals are by and large are available within 10 km.

5.0 Planning Brief

5.0 (i) Planning Concept (Type of industries, facilities, transportation etc..) town and

country planning/ development authority classification

13

It is proposed to increase the capacity of the Steel products Production from 18000

MTPA to 80000 MTPA in the existing plant premises situated at Khasra No. 251,

274/2, 274/3, 283, 284, 285, 287/1, at Village Bharthari, Tehsil Chinor, Distt. Gwalior in

Madhya Pradesh. No Township is envisaged. The transportation of raw materials and

finished products will be by roads.

The project area is falls under the jurisdiction of Village Panchayat.

5.0 (ii) Population Projection

As per the Census 2011 data the population of Gwalior District is 20, 30, 543 out of

which population of male is 10,90,647 and female population is 939896

5.0 (iii) Land use planning (break up alongwith greenbelt etc..)

The Company is having diverted land of 57060 sqm for factory purpose, the company

will develop greenbelt over an area of 19000 sqm in the factory premises, almost

20000 sqm area will be used for plant machinery, Rwa Material storage, cooling tower

and others.

5.0 (iv) Assessment of Infrastructure Demand (Physical & Social)

Physical infrastructure- All necessary arrangement like road, drinking water, rest

shelter shall be made available before start of construction work for expansion.

Social Infrastructure – shall be covered in EIA report after socio economic survey.

5.0 (v) Amenities / facilities

First aid facility shall be provided at project.

The area shall not being used at all by general public.

A rest shelter is there for workers.

A Watchman during day & night shall be deputed at site to prevent unauthorized

entry.

In case of natural hazards such as earthquake we will take assistance from the local

competent authority of Govt.

14

6.0 Proposed Infrastructure

6.0 (i) Industrial area (processing area)

The plant is located over an area of 57060 sqm, out of which 20000 sqm area will be

used as process area, and rest will be kept open for future expansion and plantation

purpose.

6.0 (ii) Residential area (Non Processing area)

05Nos. Staff quarters with one room kitchen is constructed in the factory premises

with all facilities like drinking water, electricity, toilets.

6.0 (iii) Greenbelt

The plantation shall be carried out more than 33% of the plot area in next five years.

6.0 (iv) Social Infrastructure

The company will provide infrastructure facilities like drinking water supply for

workers and staff by installing potable water tanks and water coolers, health care

facilities like first aid, repair& maintenance of the village road of 800m, also the

company will repair & maintain the 500m long road from factory gate to main road.

6.0 (v) Connectivity (Traffic and Transportation Road/Rail/Metro/water ways etc..)

Gwalior enjoys being at a very strategic position as being a main junction on New Delhi

- Chennai railroad and being on NH-3 and NH-75. Gwalior is surrounded by 3 Industrial

areas - Sitholi, Banmore and Malanpur. The project area is connected with NH and 24

hours transportation are available from plant.

6.0 (vi) Drinking water management (Source and supply of water)

Total domestic water requirement of the project is 10 kld which will be taken from

ground through borewell.

15

6 (vii) Sewerage System

The domestic waste shall be treated in Sewage Treatment Plan as the details of STP

has been given in Para No. 3 (ix)

6.0 (viii) Industrial waste management

Process (Source)

plant dust, Mill scale papers

5.0 TPA Segregation at source using dust beans and collection at “value yard” selling to local vendor

6.0 (ix) Solid waste management

S. No. Type of Solid Waste

Existing Proposed Disposal measures

1 iron Slag 2000 TPA 10000 TPA A unit of iron recovery from slag has been installed and the recovered iron shall be used with scrap to charge in induction furnace. The remaining part shall be used for civil work & bricks manufacturing.

2 mill scales (Rolling Mills)

1000 TPA 5000 TPA Will be reused in IF

6.0 (x) Power Requirement and supply / source Construction Phase: 150 KW

Source: LT temporary connection from M.P. State Electricity Board.

Operational Phase:

Energy- 26.25 x 106 KWh

Source –MP State Vidyut Vitaran Co.

7.0 Rehabilitation & Resettlement Plan

7.0 (i) Policy to be adopted (Central/State) in respect of the project affected persons including home oustees, land oustees and landless labour (a brief out=line to be given) Rehabilitation & Resettlement Plan is not required as the expansion is being carried

out in the existing premises on own private land.

16

8.0 Project Schedule and Cost estimate

8.0 (i) Likely date of start of construction and likely date of completion (Time schedule for the Project to be given) Construction activity for the proposed expansion units will be initiated after obtaining

Consent for Establishment from SPCB, and start the production of expanded capacity

only after obtaining Environmental Clearance from MOEF&CC or MPSEIAA and

Consent to Operate from SPCB. Project will be completed in about 6 months after

obtaining the aforementioned clearances.

8.0 (ii) Estimated project cost along with analysis in terms of economic viability of the

project.

The estimated project cost for expansion of project shall be approx. 15.0 crores

including existing and proposed.

9.0 Analysis of Proposal (Final Recommendation)

9.0 (i) Financial and social benefits with special emphasis on the Benefit to the local

people including tribal population, if any, in the area

This proposed expansion will generate additional employment for about 150 people

by direct & 50 people for indirect employment which include officials, staff, skilled and

semi-skilled and indirect employment, in contract works & transport.

The Management will provide social benefits like providing / supplying drinking water,

health care measure, maintenance of the village road and connecting Road to Main

road. From this proposed project, the Government of Madhya Pradesh will receive

additional revenue in terms of duties, taxes etc., thus, this project is expected to yield

a positive impact on the socio-economic environment of the region.

The Management will provide social benefits like providing / supplying drinking water,

from this proposed project, the Government of Madhya Pradesh will receive

additional revenue in terms of duties, taxes etc., thus, this project is expected to yield

a positive impact on the socio-economic environment of the region.

***********************************