pre-feasibility report...chhabra ispat pvt. ltd. pre-feasibility report vardan environet page 4 of...

Pre-Feasibility Report

for

CHHABRA ISPAT PVT. LTD.

EXPANSION PROJECT

Expansion of existing plant from 62,400 TPA Billet

production to 207,900 TPA Rolled production by

Modification of Existing 2x8 Tons Induction Furnaces

with 2x10 Tons, Installation of 2x15 Ton Induction

Furnaces with 1x15 Ton LRF, installation of 630 TPD

Rolling Mill with Producer Gas Plant of Capacity 2,850

Nm3/hr. & 100 TPD Cold Drawing Complex

Environment Consultant

Vardan Environet

(QCI and NABET/EIA/1619/RA 0037)

D-142, Sushant Lok-III, Sector 57

Gurgaon (Haryana)

Contact no.-9810355569

Mail ID: [email protected]

Contact No. 0124-4291036, 09899651342

mailto:[email protected]

Chhabra Ispat Pvt. Ltd. Pre-Feasibility Report

CONTENTS

Chapter Description Page no.

1. EXECUTIVE SUMMARY 4

2. INTRODUCTION OF PROJECT & BACKGROUND INFORMATION

2.1 Identification of Project & Project Proponent 7

2.2 Brief Description of Project 7

2.3 Project Proponent 8

2.4 Need for the project and importance to the region 9

2.5 Imported Vs. Indigenous Production 9

2.6 Demand Supply Gap 10

2.7 Domestic / Export Market 11

2.8 Employment Generation due to the Project 11

3. PROJECT DESCRIPTION

3.1 Type of Project including Interlinked and Independent Project 12

3.2 Location 12

3.3 Details of Alternative Site Considerations 13

3.4 Size and Magnitude of Operations 13

3.5 Project Description with Process Details 14

3.6 Process Details 14

3.7 Raw Materials Requirement 19

3.8 Resource Optimization 20

3.9 Solid Waste Generation & Management 21

3.10 Plant Layout 22

4 SITE ANALYSIS

4.1 Connectivity 23

4.2 Land Form, Land Use and Land Ownership 23

4.3 Topography of the Land 23

4.4 Existing Land Use Pattern 23

4.5 Existing Infrastructure 24

4.6 Soil Classification 24

4.7 Climate 24

5 PLANNING BRIEF

5.1 Planning Concept 25

5.2 Population Projection 25

5.3 Land Use Planning 25


Chapter Description Page no.

5.4 Assessment of Infrastructure Demand 25

5.5 Amenities / Facilities 26

6 PROPOSED INFRASTRUTURE

6.1 Industrial Area (Processing Area) 27

6.2 Residential Area (Non-processing Area) 27

6.3 Greenbelt 27

6.4 Connectivity 27

6.5 Drinking Water Management 27

6.6 Sewage System 27

6.7 Industrial Waste management 28

6.8 Power Requirement & Supply / Source 28

7. REHABILITATION & RESETTLEMENT (R&R) PLAN 29

8. PROJECT SCHEDULE & COST ESTIMATE

8.1 Project Schedule 30

8.2 Cost Estimate 30

9. ANALYSIS OF PROPOSAL 31


Vardan EnviroNet of 32

CHAPTER 1

EXECUTIVE SUMMARY

1.0 PREFACE

M/s Chhabra Ispat Pvt. Ltd. (CIPL) is existing steel plant at Nakrajoria, PS- Salanpur, Dist:

Burdwan (W), WB at Latitude: 23°46’43.52”N, Longitude: 86°50’20.63”E, ASML 150 m

for production of 62,400 TPA Billet through 2x8 Ton Induction Furnace with Billet Caster

based on EC granted by Ministry of Environment, Forest & Climate Change (MoEF&CC)

vide file no. J-11011/785/2007-IA II (I) dated 25th August, 2008. The existing plant area is

4.34 Ha. (10.73 acres)

On 5th March, 2012, M/s CIPL obtained another environmental clearance vide F.No. J-

11011/376/2010-IA II (I) for production of 35,780 TPA of Billet through 1x15 Ton

Induction Furnace and production of 70,210 TPA Ferro-alloys / pig iron through 2x9 MVA

Submerged Electric Arc Furnace (EAF). However, CIPL have not installed any facility

under this EC.

The company now seeking fresh environment clearance for production of 207,900 TPA

of rolled products (Long products- TMT Bar, MS Round & Wire Rod) by modification of

existing 2x8 Ton Induction Furnace (setup under the environmental clearance obtained

in the year 2008) to 2x10 Ton, installation of new 2x15T additional Induction Furnaces,

1x30 TPH Reheating Furnace with Producer Gas Plant of capacity 2,850 m3/hr., 630 TPD

Hot Rolling Mill and 100 TPD Cold Drawing complex (to produce 3,300 TPA Cold draw

products within 207,900 TPA rolled production), at the existing premises of 4.34 Ha.

(10.73 acres)

2.0 THE PROJECT PROPONENT

Sri Surendra Kumar Jain, founded Chhabra Engineering Company in 1985 and Sri Saurav

Jain, an IT Graduate and Bachelor in Business Administration and elder son of Sri

Surendra Kumar are promoter and Directors of the Company.

3.0 LOCATION & LAND

The project is located at village – NakraJoria, P.S.-Salanpur, Distt.- Paschim Burdawan,

West Bengal on area of 4.34 Ha. (10.73 Acres). The entire project will be installed in

vacant land of the existing plant. Project does not envisage additional land for the

project.

4.0 MANPOWER

Existing manpower of the plant is 59. A total manpower after the proposed expansion



shall be 159 comprising Technical Managerial & Supervisory Staff.

5.0 POLLUTION CONTROL EQUIPMENT

Following pollution control measures will be taken up for steel project of M/s Chhabra

Iron Pvt. Ltd.:

Dust suppression in Raw material Stock house. This will result in reduction in fugitive

dust emission.

Bag filter for Induction Furnaces to control fugitive emissions and to reduce stack

emissions below 50 mg /Nm3.

ETP for Rolling Mill waste water treatment

Cooling water shall be recycled in the process. Blow down water shall be used for slag

cooling and dust suppression. Zero effluent discharge (ZLD) shall be maintained.

6.0 PROJECT COST AND COMPLETION SCHEDULE

Cost of the existing facilities is Rs.13.20 Cr. The estimated cost of the proposed facilities

is 57.67 Cr.

After getting CTE from WBPCB and EC from MOEF&CC, tenders will be floated for

purchase, installation and commissioning of equipment and units and earth work will

start parallel. Estimated completion schedule of project is 24 months.

7.0 SALIENT FEATURES OF THE PROJECT

Sl.No. Particulars Details

1 The Project Expansion of existing plant from 62,400 TPA Billet production to 207,900 TPA Rolled production by Modification of Existing 2x8 Tons Induction Furnaces with 2x10 Tons, Installation of 2x15 Ton Induction Furnaces, installation of 630 TPD Rolling Mill with Producer Gas Plant of Capacity 2,850 Nm3/hr.

2 Location of the Project Village: NakraJoria, P.O.: Salanpur, District: Paschim Burdwan, West Bengal

3 Topo-sheet Nos. 73 I/13

4 Latitude 23°46’ 43.52”N

5 Longitude 86°50’ 20.63”E

6 Area of the Plant 4.34 Ha. (10.73 Acres)

7 Biosphere Reserve / National Park / Wildlife Sanctuary / Ecological sensitive area

Not within 10 km radius of the project site

8 Reserve Forest / Protected Forest

No forest land is involved

9 Existing Units and capacities as per the exiting Environmental Clearance

1. Induction Furnace 2x8 Tons 2. Continuous Casting Machines 2 Strand 4/7 m

radius



Sl.No. Particulars Details

10 Production as per the existing capacity

62,400 TPA Billets production

11 Proposed Expansion 1. Modification of existing 2x8 Tons Induction Furnace to 2x10 Tons IF

2. Installation of 2x15 Ton Induction Furnace 3. Installation of 630 TPD Rolling Mill 4. Installation of 1x15 MT LRF 5. 30 T/hr. Reheating Furnace 6. Producer Gas plant of capacity 2850 m3/hr.

12 Proposed Production Capacity 207,900 TPA Rolled Products (TMT Bar, MS Round, Wire Rod and Cold draw products)

13 Cost of the proposed expansion Existing: Rs.13.20 Crs.s Proposed: Rs. 57.67 Crs. Total: 70.87 Crs.

14 Manpower Requirement Existing: 59 nos. Additional: 100 nos. Total: 159

15 Requirement of Water Existing: 55 KLD Total after Expansion: 243 KLD

16 Requirement of Power / Fuel Power Existing: 7.5 MW Proposed: 18 MW Total: 25.5 MW DG set 1x500 KVA has been installed. 1x250 KVA DG Set has been proposed to be installed. Fuel LDO: 100 liters / hr. (Emergency Power only)

--------------------------



CHAPTER 2

IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

The Project

M/s Chhabra Ispat Pvt. Ltd. is incorporated on 24th June, 2006 and established the steel

plant for production of 62,400 TPA Billet Production through 2x8 Ton Induction Furnace

and 4/7 meter radius Billet Caster at village –Nakra Joria, P.S.-Salanpur, Distt.- Paschim

Burdawan, West Bengal after obtaining Environmental Clearance (EC) form Ministry of

Environment, Forest and Climate Change vide file no. J-11011/785/2007-IA II (I) dated

25th August, 2008 and Consent to Establish (CTE) from West Bengal Pollution Control

Board on 2nd February, 2007.

On 5th March, 2012, M/s CIPL obtained another environmental clearance vide F.No.J-

11011/376/2010-IA II (I) for production of 35,780 TPA of Billet production through 1x15

Ton Induction Furnace and 70,210 TPA Ferro-alloys / pig iron production through 2x9

MVA Submerged Electric Arc Furnace (SEAF). However, CIPL have not installed any unit

under this EC.

Status of Units Installed and Production under the ECs granted:

Product Units / Capacities as per EC granted Total Installed Units / Capacity (TPA) as on date As per EC granted on

25.08.2008 As per EC granted on

05.03.2012

Units / Capacity (TPA)

Status Units Capacity

(TPA)

Status Units Capacity TPA

MS Billet 62,400 (2x8 Ton

Induction Furnace with Billet Caster)

Installed 35,780 (1x15 Ton)

Not installed and shall

be dropped

2x8 Ton Induction

Furnace with Billet Caster

62,400

2x9 MVA Not installed

Not installed and shall be dropped Ferro-

Silicon ---- ---- 11,585

Silico-Manganese

---- ---- 23,450

Ferro-manganese

---- ---- 35,175

2.2 BRIEF DESCRIPTION OF THE PROJECT

M/s Chhabra Ispat Pvt. Ltd., now proposed to expand its capacity for production of



207,900 TPA Rolled product by modification of existing 2 nos. of 8 Ton Induction

Furnaces to 10 Ton Furnaces, install 2 nos. of 15 Ton Induction Furnaces, 630 TPD Rolling

Mill, 1x15 Ton Ladle Refining Furnace (LRF), Reheating Furnace, 1x30 TPH Reheating

Furnace with Producer Gas Plant of capacity 2,850 Nm3/hr. with other allied facilities

and 100 TPD Cold Drawing Machine.

Plant Existing installed Units as per EC dated

25.08.2008

Proposed (Total after the proposed expansion)

Unit Capacity TPA

Unit No. of Days of Operation

Capacity TPA

Steel Melting Shop Induction Furnace 2x8 Tons 62,400 2x10 Ton

(Modification of existing IF) 2x15 Ton

(New)

350 192,500

Continuous Casting Machine (CCM)

2 Strand, 4/7 m radius


350 188,650

Producer Gas plant - - 1 330 2,850 Nm3/hr

Reheating Furnace - - 1x30 TPH 330 --

Rolling Mill - - 630 TPD 330 207,900

Cold Drawing M/c 100 TPD 330 33,000 (within

207,900 TPA Rolled

production)

The project activity is listed at s.no. 3(a), Secondary Metallurgical Industry, under

Category ‘B’, as per the EIA Notification, 2006. However, as the project site is located

within 10 kms. from the interstate boundary (West Bengal and Jharkhand Boarder), the

General Condition of the notification is applicable and the project is treated as Category

‘A’ project and shall be appraised by the Expert Appraisal Committee at Ministry of

Environment, Forest & Climate Change (Industry-1) for prescribing TOR for undertaking

detailed EIA Study for the expansion project.

2.3 PROJECT PROPONENT

Sri Surendra Kumar Jain is a commerce graduate and had founded Chhabra Engineering

Company in 1985, dealing in wholesale and retail trade of Diesel Engines and its spare.



Sri Saurav Jain, an IT Graduate and Bachelor in Business Administration and elder son of

Sri Surendra Kumar Jain joined Chhabra Engineering Company in the year 2003.

Chhabra Ispat Pvt. Ltd. was incorporated as public limited company by Sri Surendra

Kumar Jain and Sri Saurav Jain, with its main objective to manufacture steel ingot /

billets, Ferro-alloys etc. are the Directors of the company. The promoters / Directors of

the company are in the business of steel and its allied products for considerable period

of the time. They have suitable association, experience and background to explore the

commercial possibilities of manufacturing and marketing billets.

With this strength, background and the prospects, the promoters envisaged

establishment of the steel plant and incorporated the company for running the same

under corporate structure.

2.4 NEED FOR THE PROJECT AND IMPORTANCE TO THE REGION

Steel is crucial to the development of any modern economy and is considered to be the

backbone of the human civilization. The level of per capita consumption of steel is

treated as one of the important indicators of socio-economic development and living

standard of the people in any country. All major industrial economies are characterized

by the existence of a strong steel industry and the growth of many of these economies

has been largely shaped by the strength of their steel industries in their initial stages of

development.

The finished steel production in India has grown from a mere 1.5 million tonnes in 1951

to 93.2 million tonnes in 2017-18. During the first two decades of planned economic

development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel

production exceeded 8%. According to Ministry of Steel reports, the total production of

Crude Steel in India has been 102.34 million tonnes in 2017-18 as compared to 53.67

million tonnes in 2007-08 indicating an increase of 91% in the last 10 years (i.e. annual

growth rate of above 9%).

2.5 IMPORT Vs INDIGENOUS PRODUCTION

Global Crude steel production has recorded an annual growth of 2.6% during last 10

years (2008 to 2018). World crude steel production stands at 1689 million tons during

2016 compare to 1343 million tons during the year 2007.

Annual growth rate of crude steel production was above 9% in India, compare to 2.6%

world growth rate and this will continue.



2.6 DEMAND-SUPPLY GAP

The per capita steel consumption in India continues to remain at a level 68 kg in

comparison to World average of about 208 Kg and 350 kg in developed countries.

Though, India is 3rd largest producer of steel in the World, India’s contribution is only

16.6% of the world steel production. Hence long term and short term strategies are

necessary in planning the development of the steel industry in the country to improve

the level of per capita steel consumption.

Despite the current concerns over growth, there is a strong view within the industry and

the government that due to the intrinsic potential of steel demand growth in India, the

longer term opportunities for the sector continue to be strong. Steel consumption

significantly depends on the overall performance of the economy (GDP) and more

specifically on investments made in fixed assets such as housing, infrastructure like

railways, ports, roads, airports, etc. While there is no absolutely reliable information on

the share of steel consumption in these areas in India, most of the estimates put the

figure at about 65 per cent. This is in line with global experiences. In addition, steel is

consumed significantly in the production of capital goods, automobiles, etc.

Private sector is playing an important role in supplementing the requirement of steel in

the country. Their contribution in finished steel production has increased to58.9% in

2017-18 as compared to 45% in 1992-93. It is expected that private sector will continue

to play a dominant role in the future.

Considering the prospects for the development for Infrastructure, construction and

Industrial activity in India in the years to come, large scope exists for increased

consumption of long steel products. The projections made by the Ministry of Steel in its

Vision-2020 document, there is a significant domestic demand for steel in the Country.

In order to meet the increasing steel demand, new steel plants shall be established. It

has been observed that a combination of small, medium and large capacity steel plants

can contribute in big way in achieving the national interest of self-reliance.

Considering the demand for steel in these sectors M/s. Chhabra Ispat Pvt. Ltd. has

planned to expand the production capacity of its existing plant at Village: Nakra Joria,

Salanpur, Distt. – West Burdwan, West Bengal.

The State can be benefited from the project as there will be direct employment of large

people in the Steel plant. Preference will be given to the people of the state possessing

requisite skill and qualification criteria. Also there will be lot of scope for indirect

employment of the people of the state in and around the project site.



2.7 DOMESTIC / EXPORT MARKET

Instead of selling billets to Rolling Mills of other Units, it is now proposed to set-up its

own Rolling Mill to produce Thermo-Mechanically Treated (TMT) High Strength Steel

Reinforcement Bars, MS Road and Wire Rod in a most energy efficient and cost effective

manner. These Rebars are always in high demand in the construction sector. The

finished product will be sold in the Steel Markets of Major states in India especially

Bengal, Jharkhand, Bihar, Sikkim, Uttar Pradesh and North Eastern States. The products

will be produced indigenously and will be consumed in the country and also outside the

country as per the demand.

2.8 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT

Existing manpower of the plant is 59. The estimated additional direct manpower

required after the proposed expansion shall be 100, comprising administrative,

technical, non-technical, skilled and unskilled workforce. Approx. 50 persons will be

employed during construction phase.

The total requirement of manpower in the plant will be available without much difficulty

as the area has industrial exposure in Iron & steel sector. However, specialized training

for operation and maintenance will have to be given to selected candidates well in

advance before commissioning of the plant.

In addition to this there shall be indirect requirement of manpower in transportation

sector for transportation of raw material. Development of nearby industries also

envisaged for supply of additional requirement of Sponge Iron and Pig Iron.

-------------------



CHAPTER 3 PROJECT DESCRIPTION

3.1 TYPE OF THE PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECTS, IF ANY

The project is Industrial project listed under activity 3(a) Metallurgical Industries

(Ferrous & Non-ferrous) of EIA Notification, 2006 and falls under Category ‘A’ due to its

location within 10 kms. from Interstate boarder.

The project is an expansion of existing works and will be located in the same location

where the existing plant is and for which the area is available. Project is standalone

project for creating Steel Making and rolling facility at one location without dependence

on other projects. There is no interlinked project or interdependent project.

3.2 LOCATION

As the proposed expansion within the existing plant area, no additional land will be

required and expansion shall be carried out within the existing plant premises at Village

– Nakra Joria, Salanpur, Distt. – Paschim Burdwan, West Bengal.

DETAILS OF ALTERNATE SITES

PROJECT SITE

Village – NakraJoria

P.O. – Salanpur

District – Paschim Burdwan,

West Bengal

Longitude - 230 46’ 30”N

Latitude - 86050’ 35”E

Burdwan District



3.3 DETAILS OF ALTERNATE SITE CONSIDERED

Alternate site has not been examined as the project is modification of existing facilities

within the existing plant area.

3.4 SIZE OR MAGNITUDE OF OPERATION

The project is expansion of existing plant. The project size is as follows:

Plant Existing installed Units as per EC dated

25.08.2008

Proposed (Total after the proposed expansion)

Unit Capacity TPA

Unit No. of Days of

Operation

Capacity TPA

Steel Melting Shop

Induction Furnace 2x8 Tons 62,400 2x10 Ton (Modernization of existing 2x8 MT IF)

2x15 Ton (New)

350 192,500

Continuous Casting Machine (CCM)



350 188,650

Producer Gas plant

- - 1 330 2,850 Nm3/hr

Reheating Furnace

- - 1x30 TPH 330 --

Rolling Mill - - 630 TPD 330 207,900

Cold Drawing M/c 100 TPD 330 33,000 (within

207,900 TPA Rolled

production)

Products

Product Existing (TPA)

After proposed expansion (TPA)

MS Billet 62400 188,650

Rolled Product

TMT Bar, MS Round, Wire rod

--- 207,900

Cold draw

products like Torkari, Black Wire, Nails,

Wire Mesh etc.

---- 33,000

(from rolled product)



3.5 PROJECT DESCRIPTION WITH PROCESS DETAILS

Plant Technical Feature

The existing 62,400 TPA Plant is having 2x8 MT Induction Furnace with 4/7 radius, 2

strand Billet Caster. The Raw Material like Sponge Iron, Pig Iron, scrap & Ferro-Alloys are

being melted in Induction Furnace and the refined liquid metal is cast into billets

through continuous casting machine.

The present proposal is for modification of existing 2x8 Tons Induction Furnaces with

2x10 Tons Furnaces, installation of new 2x15 Ton Induction Furnace and 630 TPD Rolling

Mill. In the present proposal billets shall be rolled into TMT Bar, MS Round, Wire rod in

the Rolling Mill. Reheating Furnace shall be provided to reheat the billets, if required, for

rolling. Cold Drawing Plant of 33,000 TPA shall be installed at the downstream of Rolling

Mill. Producer gas shall be used as fuel in the Reheating Furnace. In addition to the

above, 15 Ton Ladle Refining Furnace (LRF) for refining the liquid steel, Softening Plant

to soften the water. The plant will have EOT cranes (for material handling), dust

extraction system (to remove dust from hot air), fire protection system, air compressors,

air conditioning and ventilation system and electrical system.

3.6 Process Details

3.6.1 Steel Melting Shop

Induction Furnace:

IF are basically furnaces meant for use of Sponge Iron as major raw material to produce

mild steel. These furnaces work on the principal of electromagnetic induction. After the

furnace is switched on, current start flowing at a high rate and comparatively low

voltage through the induction coil of the furnace, producing an induced magnetic field

inside the central space of the coils where the crucible is located. The induced magnetic

field thus generated cut through the packed charge in the crucible. As the magnetic flux

cut through the scrap/pig iron and complete the circuit, they generate an induced

current in the scrap. The induced current as it flows the highly resistive path of scrap

mix, generate tremendous amount of heat and melting the scrap. When these additives

have melted completely, the power input may be increased to bring the temperature of

metal up to the point most desirable for pouring. The current is then turned off and the

furnace is tilted for pouring into the ladle. As soon as pouring has ceased, the crucible is

cleaned completely from any slag or metal droplets adhering to the wall of the crucible

and the furnace is now ready for charging again. An induction crucible furnace differs

from arc furnace in the ways, which are important metallurgically, though both types of



furnaces are used for making steel from scrap and alloys. Induction furnace does possess

the following characteristics:

High relatively, narrow melting vessel

Low Crucible wall thickness

Relatively small area of metal in contact with slag

Low slag temperature

No carburizing during melting down

Powerful bath motion

Induction Furnace Capacity (Existing & Proposed)

Parameters Existing Total after proposed Expansion

Furnace capacity 2x8 Tons 2x10 Tons (Modernization of existing 2x8 MT IF)

2x15 Tons

Tap-to-tap cycle time/min 120 120 ~130 120 ~130

Number of heat/day 12 11 11

No. of operating days 325 350 350

Equivalent liquid steel, 62,400 77,000 115,500

Total Liquid Steel Production 62,400 192,500

Billet Production 62,400 188,650

It may be seen from Table above that tap to tap time has been aimed at approx. 120 –

130 minutes enabling production of 11 heats per day from each Induction Furnace. The

Induction Furnace lining will require repair / replacement after about 15-16 heats. Lining

repair will be done in-situ. In order to ensure uninterrupted operations a second

crucible, lined and ready should be available. Thus, each furnace station will consist of

two crucible complete with all fitting and auxiliaries installed adjacent to each other

At the ladle treatment station, liquid steel is ringed with nitrogen to homogenize its

temperature and composition.

HT power supply is transferred to the converter through step down transformers where

power is converted from AC to DC. Power after changing in frequency of cycle in

between 250 to 500 Hz is passed through capacitor bank to achieve the desired voltage

and passed into molten bath having cooper coil, cooled through water circulation. 4500

kVA Furnace Transformer has been provided with each 2x8 Ton furnace and 2500 kVA

Auxiliary Transformer and shall be maintained. Additionally, 2 nos. of 7500 KVA

transformers will be installed with for 2x15 Ton Induction Furnaces and 1 no of

transformer for reheating furnace will be provided. The heat energy is passed into the

bath at constant voltage to melt the steel at a temperature of about 1550°C to 1600°C.

The necessary ferro-alloys and flux materials are added when charge is completely



melted. The liquid steel is poured into preheated ladle and transferred to concast

machine.

Continuous Casting Machine:

The ladle containing liquid steel is placed on the turret and brought over the tundish.

The tundish act as a buffer and enable the liquid steel to move homogeneously down

through nozzles, provided at the bottom of the tundish into moulds. The automatic

mould level controller controls the steel level in the mould. The subsequent primary and

secondary cooling transform the liquid steel into billets of the required dimensions and

is drawn out with the help of a withdrawal and straightner unit and cut into required

length by the shear provided in each strand. Once a ladle is emptied another ladle is

brought into the casting position and the casting continues. The billets are gradually

shifted to the cooling beds and then stacked orderly at the dispatch end for outside

dispatch. The details about the cast number and quality of billets are marked on the

billet stack.

CCM is used to produce billets of cross-sections 100 sq. mm to 135 sq. mm. It has been

proposed to produce billets of cross section of 100 sq. mm to 135 mm sq. mm as per

demand.

Ladle Refining Furnace: 1x15 Ton LRF shall be installed under the proposed expansion

for refining of liquid steel.

Softening Plant: The electrical coil of Induction furnace needs to be cooled by soft water

primarily to avoid any electrical conduction through cooling water. To achieve this, 1

nos. of Softening Plant of 11 lpm has been provided. Under the proposed expansion

additionally one (1x22 lpm) Softening Plant will be installed for 2x15 Ton Induction

Furnace and 1x11 lpm will be installed for Rolling Mill.

Cranes: 2x10 MT and 1x15 MT and 2x30 MT double girders, EOT cranes to handle the

raw material and finished product has been provided. There would be further

requirement of 2 additional Cranes of 10/5 MT for the furnaces and 2x10/5 MT Cranes

at the rolling mill side. All cranes will comply IS 3177 – Code of practice for electric

overhead travelling cranes and IS-807 – Code of practice for electric overhead traveling

cranes, which is meant for EOT cranes in steel plants.

Cooling Water System: The system will take care of cooling water requirement of

Induction Coil, magnetic yokes, water cooled cables and cooling of billets.

2 nos. of Cooling Towers of capacity 2275 lpm have been provided with each Induction

Furnace and 2 nos. of Cooling Towers of capacity 3300 lpm, each, are provided with



CCM. Under the proposed expansion, additionally 2 nos. of Cooling Towers of capacity

4500 lpm will be installed with each 2x15 Ton IF and 7000 lpm Cooling Tower with the

proposed Rolling Mill.

3.6.2 Producer Gas Plant:

Producer gas plant of capacity to produce 2,850 m3/hr. of producer gas, to be used in

Reheating Furnace shall be installed.

Producer gas is a low calorific value fuel gas comprising of mainly carbon monoxide and

nitrogen. It is produced by passing air or a mixture of air and steam through a burning

bed of solid fuel such as coal. Hydrogen is also present in a significant amount in the

producer gas if air-steam blast is used. The exact composition of producer gas depends

on the type of fuel, composition of the blast and operating condition. Producer gas is

formed in a gasifier, called gas producer. The gas is produced by the gasification of coal

at relatively low temperatures (7000Cto 10000C). Producer gas is composed of carbon

monoxide (CO), hydrogen (H2), carbon dioxide (CO2) and typically a range of

hydrocarbons such as methane (CH4) with nitrogen from the air.

Producer gas will be used as a fuel gas in the Reheating Furnace for heating of billets to

attain the required temperature of ≈10200C before rolling.

Majority of Billets will be directly sent from CCM to Rolling Mill. Billets from RH Furnace

are fed to the Rolling Mill when there is no feed from CCM.

3.6.3 Reheating Furnace:

Reheating furnace is used for heating of billets before hot rolling in Rolling Mill. A

Reheating Furnace of capacity 30T / hr. will be installed under the proposed expansion.

Producer Gas will be used as fuel in reheating furnace. Billets will be heated

temperature up to 10200C. Billets will be directly fed from CCM to the Rolling Mill

bypassing the Reheating Furnace. Reheating Furnace is used only when there is no feed

from CCM.

3.6.4 Rolling Mill

The company proposes addition of 630 TPD Hot Rolling Mill complex. Red hot billet from

CCM will be directly fed to Rolling mill for production of TMT Bar, MS Round & Wire

Rods of different diameters. Production of Billets from the proposed plant will be

188,650 TPA from which approx. 179,667 TPA (545 TPD) rolled product will be produced.

However, Rolling Mill of 630 TPD (207,900 TPA) shall be installed to convert the approx.

218,295 TPA purchased Billets into rolled product (in addition to rolling of 188,650 TPA

Billet from in-house production).



3.6.5 Cold Drawing Work-shop

Cold drawing workshop of 100 TPD, consisting of numbers of machines to produce Cold

draw products like Torkari, Black Wire, Nails, Wire Mesh etc. will be installed. Wire Rods

of different diameter will be pulled through series of dies. These cold drawn products

have high mechanical strength and so high market demand.

3.6.6 Other Facilities

Plant Water System: Water required in Cooling Tower as make up. Water is also

required to produce treated water to maintain its ppm or hardness or conductivity,

increased due to contamination in cooling line. Raw water requirement for CT, DM

plant, area cleaning system etc. shall be met through bore-wells. Plant is having

permission from Ground Water Resource Development Authority, Burdwan, WB for 1

borewell for drawl of 10 m3/hr. for 6 hours per day. Additionally, the PP has applied for

permission of 3 borewells of 15 m3/hr.

Compressed Air System: Compresses air is required primarily at three locations in the

plant viz. in Induction Furnace, in CCM & in Dust Extraction System (bag filters).

Fire Protection System: Adequate fire-fighting equipment has been provided for each

production unit. Following systems of fire protection has been provided in the steel

plant:

Water hydrants network around all the shops.

Smoke detectors in critical areas such as control rooms

CO2 type portable fire extinguishers for electrical rooms flooding system and

Foam type fire extinguishers near lubrication, hydraulic and fuel oil installation.

Adequate number of portable fire extinguishers will be provided at various locations in

the plant shed, LT panel room & DG set room.

Plant Electrical System: Plant Electrical System will have a 33 or 132 kV outdoor type

sub-station. The power supply through furnace transformers will be supplied to furnace

whereas power supply through auxiliary transformer which will be used for EOT crane

operations, CCM operations, furnace auxiliaries, pumps for cooling water, lighting etc.

Emergency Back-up Power: 1 no. of 500KVA silent type DG set has been provided for

power to the auxiliaries of plant when DVC power is not available. Another 1x250 KVA

will be provided. This will also be useful for emergency power to take care of safe shut

down of important auxiliaries of plant. During total power failure, above DG set will also



support for Emergency lighting for personnel movement in some main location of steel

plant.

Storage Yard: Raw material shall be brought to the yard in trucks are unloaded and

stacked indifferent piles by pay loaders.

Process Flow Diagram:

3.7 RAW MATERIAL REQUIREMENT

The proposed site is located near the National Highway and Eastern Railway line. The

Raw materials and products can easily be transported to the site. The site is also

close to the raw material availability area for the project. The connectivity of the site

is very good through State Highway Road connecting the site.

Sponge Iron & Pig

Induction Furnace

Molten Metal

Tapping in Pre-Cast ladle

Pouring of Metal to Tundish of CCM

Casting of Billets

Cooling of Billets or to Rolling Mill

Ferro Alloys Slag Skimming

Flue gas through Bag Filer to Stack

Rolling of Billets

Reheating of Billets

TMT Bar, MS Round

Wire Rod Cold Drawing of Wire rod

Torkari, Black Wire, Nails,

Wire Mesh etc.

Refining of Liquid Steel in LRF



Annual Requirement of Raw Material and source

Sl.

No

Raw Material Ratio Quantity (TPA) Source of Raw Materials

Existing Total after the

proposed

expansion

Steel Melting Shop – Induction Furnace (550 TPD – 192,500 TPA)

1. Sponge iron 0.80 49,400 154,000 Shyam Sel & Power Ltd.,

Jamuria, Burdwan, WB.

Bravo Sponge & Iron (P)

Ltd., Purulia, WB

2. Scrap 0.147 8,450 28,297 Sarva Mangalam

Gajanan Steel, Asansol,

WB

SRMB Srijan (P) Ltd.,

Durgapur, WB

3. Pig iron 0.147 8,450 28,297 KIC Metaliks Ltd.,

Durgapur, WB

Atibir Industries Co. Ltd.,

Giridih, Jharkhand

4. Ferro Alloys

(FeMn, FeSi, Al)

0.006 366 1,156 Ispat Damodar Pvt.Ltd.,

Purulia, WB

Total 1.1 66,796 211,750

Steel Melting Shop – Billet Caster (539 TPD – 188,650 TPA)

1 Liquid Steel 1.02 --- 192,500 In-house

Rolling Mill – (630 TPD – 207,900 TPA)

1 Billet (In-house) 1.05 --- 188,650 In-house

2 Billet (Procured) 1.05 --- 29,645 Maithan Steel & power

Ltd., Salanpur, Burdwan

Total 1.05 218,295

Cold Drawing Machines – (100 TPD – 33,000 TPA)

1 Wire Rod 1.0 --- 33,000 In-house

Producer Gas plant

1. Coal -- --- 8,400 Chitra colliery (BCCL), Jharkhand ECL, Raniganj

2. Water -- --- 3,360 (KL) Borewell

3.8 RESOURCE OPTIMISATION

Water Requirement

The requirement of makeup water for industrial and domestic purposes after the

proposed will be 243m³/day. The requirement will be met from deep bore wells.



Permission for the same shall be obtained from Ground water Resource Development

Authority, Paschim Burdwan.

Units

Water Requirement (KLD)

Existing Total after Expansion

Induction Furnace 35 118

Continuous Casting 15 50

Rolling Mill -- 50

Producer Gas Plant -- 10

Domestic 5 15

Total 55 243

3.9 SOLID WASTE GENERATION AND MANAGEMENT

Type of Waste Quantity in Tons (TPA) Mode of Disposal

Existing Total after the proposed expansion

IF Slag 5,744 18,210

After metal recovery (approx. 10%), remaining slag shall be crushed and will be used as aggregates

IF Bag Filter Dust 200 635 Shall be given to Sinter Plant or Pallet Plant

Mill Scale 310 5120 Shall be given to Sinter Plant / Pallet Plant

Cinder -- 2100

Tar -- 350 Shall be used internally

Total 6,254 26,415



3.10 PLANT LAYOUT DRAWING



CHAPTER 4

SITE ANALYSIS

4.1 CONNECTIVITY

Site Location Village: Nakra Joria, P.O.: Salanpur, District – West Burdwan, West Bengal

Height above MSL 150 meters

Road Connectivity Kolkata – Delhi (NH-2) is 6.0 km away from the site.

Rail Connectivity The nearest Railway Station is Kulti on Kolkata – Delhi route, 4.0 kms. from the project site

Nearest Airport Netaji Subhash Chandra Bose International Air Port -250 km

Nearest Port Haldia Port 370 kms.

Nearest River Barakar River at 1.5 kms.

National Park, Wildlife Sanctuary, Reserve Forest within 10 kms.

Nil

4.2 LAND FORM, LAND USE AND LAND OWNERSHIP

The land use is Industrial. The expansion project will be located within the existing plant

area. M/s Chhabra Ispat Pvt. Ltd. is owner of the land.

4.3 TOPOGRAPHY OF THE LAND

Asansol-Durgapur region is composed off undulating laterite soil. This area lies between

two mighty rivers – Damodar and Ajay. The flow almost parallel to each other in the

region. The average distance between the two rivers is around 30 kms. For ages the area

was heavy forested and infested with plunderers marauders. The discovery of coal led to

industrialization of the area and most of the forest is cleared. At the western fringe of

the area, the Barakar forms the boundary with Jharkhand. A small stream of about 40

kms. long has its origin near Adra village in Salanpur area flows through the Barabani

area, past Asansol and joins the Damodar in Raniganj area. Salanpur block spread over

135.05 km2 has a population of 156,320 as per 2001 Census.

4.4 PROPOSED LAND USE PATTERN

Land Use after the expansion shall be as follows

Area Area in Acres Area in Ha.

Built-up area 3.85 1.56

Internal Road 0.42 0.17

Raw Material Storage 0.30 0.12

Slag Storage 0.07 0.03

Greenbelt 3.55 1.44

Open Area 2.55 1.03

Total 10.73 4.34



4.5 EXISTING INFRASTRUCTURE

Infrastructure available for water supply, power (including back-up power), Lab, weigh

Bridge, Drinking Water, Rest Room, Toilets, Medical Unit, Staff Quarters. No additional

facilities required

4.6 SOIL CLASSIFICATION

Asansol-Durgapur region is composed off undulating laterite soil, while most of Bengal is

flat alluvial plain. Asansole sub-division lies on exposed Gondwana rock and consist

mostly of undulating laterite soil. It forms the lower chota-Nagpur plateau, which

occupies most of Jharkhand.

4.7 CLIMATE DATA

The temperature in summer season varies from 300C to 450C while the same in Winter

season comes down to 100C to 280C.The region receives approximately 150 cms. from

June to September (monsoon season).

Maximum dry bulb temperature 450C

Minimum dry bulb temperature 100C

Maximum Relative Humidity % 80%

Minimum Relative Humidity % 60%

Rainfall during monsoon About 145 cm annually



CHAPTER 5

PLANNING BRIEF

5.1 PLANNING CONCEPT

The project is for modification of existing 2x8 Ton Induction Furnace, Installation of 2

nos. of 15 Ton Induction Furnace, Rolling Mill and other allied facilities within the

existing plant area. The project shall be implemented within 24 months after grant of

Environmental Clearance from Ministry of Environment, Forest & Climate Change and

Consent to Establish by West Bengal Pollution Control Board.

Number of Coal Mines of Eastern Coal Fields (subsidiary of Coal India Limited) are

located in the northern part. Other industries like IISCO Steel Plant of Steel Authority of

India Limited, Chittaranjan Locomotive Works, Hindustan Cables Ltd., Disergarh Power

supply, Damodar Valley corporation, Burn standards, couples of Cement plant, such as

Burnpur Cement and quite a few Refractory units such as Kabita Refractory are located

in this area.

Material will be transported by Rail & Road. Nearest railway station, Kulti is 4 kms. from

the project site and Delhi – Kolkata NH-2 is 6 kms. from the project site.

5.2 POPULATION PROJECTION

Manpower requirement for the proposed expansion shall be limited to 100 and will be

sourced from local population. Hence there will not be increase in population due to

direct employment in the area due to the proposed expansion.

5.3 LAND USE PLANNING

Total area of the plant is 4.34 Ha.33% of the area will be used for greenbelt

development. Out of 4.34 Ha. (10.73 Acres) of land, 1.44 Ha. (33%) has been kept for

greenbelt development. Land will be required for installation of 2x15 Ton Induction

Furnace, LRF, Reheating Furnace, Producer Gas Plant, Rolling Mill, Cold Drawing M/c and

other allied facilities, which shall be installed within the existing plant area for which

land is available. No additional land shall be required for the proposed expansion.

5.4 ASSESSMENT OF INFRASTRUCTURE DEMAND

Project is located in area with already available infrastructure. The plant has well

connected National Highway as mentioned in the above chapters. Plant has also well-

developed connecting roads inside plants for movement of raw material, storage areas

for raw materials and finished products since the plant is under operation.

There is no additional infrastructure required for the proposed expansion.



5.5 AMENITIES / FACILITIES

The following facilities are already available at the project site as it is an operational

plant:

Administration Building

Stores

Time and security offices

First aid and fire-fighting station

Canteen and welfare center

Toilets and Rest rooms

Car parks and cycle / scooter stands

No other additional facilities are proposed.

--------------------



CHAPTER 6

PROPOSED INFRASTRUCTURE

6.1 INDUSTRIAL AREA (PROCESSING AREA)

The industrial area within the premises of M/s Chhabra Ispat Pvt. Ltd. comprising of 2

nos. of Induction Furnace, Continuous Casting Machine. The proposed plant comprising

2x10 Ton Induction furnace (modified), 2x15 Ton Induction Furnace (new), Producer Gas

plant, Reheating Furnace, Rolling Mill and Clod Drawing Workshop including their

respective facilities like Raw Material Handling unit, Cooling Towers, Effluent Treatment

Plant, Softening Plant, Finished Material Storage Yard etc. Total area of the plant is 10.73

acres (4.34 Ha.).

6.2 RESIDENTIAL AREA (NON PROCESSING AREA)

There is no proposal of any residential colony as the required manpower will be sourced

from local population. Facilities like Canteen, Rest room, Toilets are already exists.

6.3 GREEN BELT

Green Belt will be developed over 33% of the plant area. Indigenous trees will be

planted in 1.44 Ha. (3.54 acres) out of the total area of 4.34 Ha. (10.73 acres). Tree

density of 2500 trees per hectare (1000 nos. of plant per acre) with local board leaf

specification will be planted.

6.4 CONNECTIVITY

Project site is well connected by road and rail.

Road Connectivity through National Highway NH-2, which is 6.0 km away from the site.

Rail connectivity – Kulti Railway Station on Howrah – Delhi / Howrah – Mumbai route is

4.0 km away

No further development is required

6.5 DRINKING WATER MANAGEMENT

Raw water from bore wells will be treated in Water Treatment Plant and is being

supplied for drinking purpose in Offices, Canteen and Work place. Employees are being

provided potable water for drinking.

6.6 SEWAGE SYSTEM

Sufficient and suitable toilet facilities of proper standard and hygiene have been

provided. These facilities are connected with Septic Tank with Soak Pit.



6.7 INDUSTRIAL WASTE MANAGEMENT

There is no waste water discharge from the plant. Cooling water is being recycled after

cooling in the Cooling Towers. Blow down water from Cooling Towers are being used for

slag cooling and dust suppression. Zero discharge shall be maintained after the proposed

expansion.

Solid Waste Management

Type of Waste Management

Induction Furnace Slag Utilised in area development

Bag Filter Dust Sold to Sinter Plant / Pallet Plant

Mill Scale Sold to Sinter Plant

6.8 POWER REQUIREMENT & SUPPLY / SOURCE

Power Requirement

Power requirement for operation of the existing plant is 7.5 MW. Power is being provide

from 3.3 KV Sub-station for operation of the plant

Existing Total after the proposed Expansion

7.5 MW 25.5 MW

Power requirement shall be met from Damodar Valley Corporation (DVC). Permission

shall be obtained.

For emergency power requirement 1x500 KVA DG Set has been installed. Additionally

1x250 KVA DG set shall be installed under the proposed expansion.

--------------------



CHAPTER 7

REHIBILITATION AND RESETTLEMENT (R&R) PLAN

No land is required for the proposed expansion. Hence, Resettlement & Rehabilitation is

not required as there is no land acquisition or displacement of any houses, habitation or

livestock.

---------------------



CHAPTER 8

PROJECT SCHEDULE & COST ESTIMATE

8.1 PROJECT SCHEDULE

M/s ChhabraIspat Pvt. Ltd. has initiated actions to get statutory clearances to start the

project. Clearances required are Environmental Clearance from Ministry of Environment,

Forest & Climate Change and Consent to Establish from West Bengal pollution Control

Board.

Completion schedule of the project is 24 months. “Zero date” for a project is reckoned

as the date on which the all statutory clearance to start the project are received.

Sl.No. Activity Schedule in Months

1 Consent to Establish Zero date

2 Placement of Order 1 months

3. Civil & Structural work 5 months

4. Procurement, Installation & Commissioning 18 months

Total 24 months

8.2 COST ESTIMATE

Total Project Cost is estimated as Rs. 70.87 Crs. including cost of existing plant as Rs.

13.20 Crores. Project Cost for additional facilities is estimated as Rs. 58.25 Crores,

including cost of CER.

Sl.No. Item Cost (Rs. In lakhs)

1 Land and Site development 80

2 Building & Civil Work 1,406

3. Plant & Machinery 2,735

4. Misc. Fixed Assets 420

5. Preliminary Expenses & Pre-operative expenses 860

6. Provision for contingencies 68

7. Margin Money & working Capital 218

Total Project Cost 5,767

8. Corporate Environment Protection 58

Total Cost of Project including CER 5,825 The project will be funded from internal accrual of the company and bank loan.

--------------------------



CHAPTER 9

ANALYSIS OF PROPOSAL

Over the last few years, there has been a great change in the Indian Economic Scenario

due to Global slowdown which affected the whole world including India. The major

sector which took the toll was Steel & Power Sector.

M/s Chhabra Ispat Pvt. Ltd. is presently operating two numbers Induction Furnace of

capacity 8 Tons capacity with annual production of 62,400 TPA MS Billets.

To make end product economically viable in present fluctuating market, M/s CIPL have

decided to go for expansion by modification of the existing Induction Furnaces to 10 Ton

capacity (from the existing 8 Tons) and to install 2x15 Ton (new) Induction Furnaces to

enhance the annual billet production capacity to 188,650 TPA, 207,900 TPA Rolled

product (TMT Bar) and 33,000 TPA Cold Drawn products. Capacity expansion will

essentially meet the increasing steel demand in India.

The Directors of CIPL are experienced Industrialist, dynamic, practical, hardworking

&self-made entrepreneur. They have excellent reputation in & around Bengal,

Jharkhand, Bihar, Sikkim, Uttar Pradesh and North Eastern States. The products will be

produced indigenously and will be consumed in the country and also outside the country

as per the demand.

The management team consists of experienced and matured professionals. The team is

quite capable of managing the business. Therefore, no financial problem is envisaged.

The technology involved in expansion project is well proven and reliable. Many plants

are operating all over the country in this pattern are successful. All equipment

purchased shall be brand new & latest in model and will be purchased from reputed

suppliers. For O&M of the plant, experienced Engineers /Technicians are available in the

region.

The demand for Rebar which is about 30% of the total Steel Consumption in the country

is expected to grow from 22.0 Million Tons per annum to about 44.0 Million Tones per

annum by 2020.TMT Rebar are used as Steel Reinforcement Bars in the construction

sector for building the houses, industrial buildings, bridges for highways, roads &

railways, schools, airports, recreation centers, power plants & electrical distribution, civil

works etc. The product has demand in domestic and international market.

Profitability of project is quite attractive. Project is technically and financially viable with

positive impact on the local infrastructure.



The region shall also be benefited from the project as there will be direct employment of

people in the Steel plant. Preference will be given to the people of the state possessing

requisite skill and qualification criteria. Also there will be lot of scope for indirect

employment of the people of the state in and around the project site like in

transportation sector.

In view of the above the Expansion Project of M/s ChhabraIspat Pvt. Ltd. is technically

feasible and financially viable hence recommended for implementation. We request EAC

to recommend TOR for conducting the EIA Study for obtaining Environmental Clearance

from Ministry of Environment, Forest & Climate Change.

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