modernization cum expansion of induction furnace...

Project Proponent:

M/S. Agarwal Foundries Pvt. Ltd.,Sy. No. 158 (part) 159 (part), 166‐170,

village Chetlagoraram, Mandal‐ Toopran, District‐

Medak, Telangana.

Environment Consultant:

Sri Sai Manasa Nature Tech Pvt. Ltd.,QCI/NABET Accredited Vide S. No. 140, (Dated 05.06.2016 displayed on NABET website )

Plot No. 74/A, Flat No 102, Central Bank BuildingKalyan Nagar, Hyderabad 500038

E‐mail: [email protected] , web: www.ssmntech.comContact no. 040‐2316333, Fax No.: 040‐23816222

June 2018

MODERNIZATION CUM EXPANSION OF INDUCTION FURNACE PRODUCTION(2,05,000 TPA TO 6,00,000 TPA) AND ROLLING

MILL PRODUCTION (3, 69,000 TPA TO 6,00,000 TPA)at

Sy. No. 158 (part) 159 (part), 166‐170, village‐ ChetlagoraramMandal‐ Toopran, District‐Medak, Telangana.

M/s Agarwal Foundries (P) Ltd. Pre-Feasibility Report

1.1 Introduction

India is the third-largest crude steel producer in the world. In FY18, India produced 104.98

million tonnes (MT) of finished steel. Crude Steel production during 2017-18 stood at 102.34

MT. Steel consumption is expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.

India’s steel production is expected to increase from 102.34 MT in FY18 to 128.6 MT by 2021.

The Government of India has allowed 100 per cent foreign direct investment (FDI) in the steel

sector under the automatic route. Nearly 301 MoUs have been signed with various states for

planned capacity of about 486.7 MT.

India’s per capita consumption of steel grew at a CAGR of 4.75 per cent from 45 kgs in FY09 to

65.25 kgs in FY17. The figure stood at 68 kgs during April-February 2017-18. National Steel

Policy 2017 seeks to increase per capita steel consumption to the level of 160 kgs.

M/s. Agarawal Foundries (P) Ltd. has a steel Plant located at Sy. No. 158 (part) 159 (part), 166-

170, village- Chetlagoraram, Mandal- Toopran, District- Medak, Telangana.

The company has obtained Environmental Clearance for the existing units vide order

No. SEIAA/TS/MDK-05/2015 dated 06.02.2016 for Induction Furnace with production capacity

205000 TPA and rolling mill Production 369000 TPA at located at at Sy. No. 158 (part) 159

(part), 166-170, village- Chetlagoraram, Mandal- Toopran, District- Medak, Telangana. Now,

company is proposing to remove the existing old furnaces with 6 x 30 TPH Induction furnaces.

After expansion total induction furnace production capacity will be 600000 TPA and rolling mill

production capacity will be 600000 TPA.

The company already acquired 32.0 acres of land and proposed expansion will be done within

existing plat premises.

The salient features of the project are given Table 1.

Table 1-Salient Features of the Project

Project Name M/s. Agarwal Foundries (P) Ltd.

Total Area 32 Acres

Location of Project

Sy. No. 158 (part) 159 (part), 166-170, village-

Chetlagoraram, Mandal- Toopran, District- Medak,

Telangana

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Production Capacity

Existing Production Capacity

Induction furnace - 2,05,000 TPA

Rolling Mill – 3,69,000 TPA

Proposed Production Capacity



Total Capacity after Expansion



Raw Material Sponge Iron (60%), Pig iron (15 %) and Scrap (25%)

Water demand

Source – Ground water

Total Water Quantity– 395 KLD

Existing – 125 KLD

Proposed – 270 KLD

Sources of water Ground water

Man power Existing – 250 Nos.

Proposed- 100 Nos.

Electricity Consumption

Existing – 25000 kVA

Proposed – 31500 kVA

Source: Telangana State Electricity Board

Nearest railway station Tupran Railway Station – 9.0Km, NNW

Nearest airport Hyderabad Airport – 58Km, S

Proposed Expansion Project Cost Rs. 40 Crores

2.0 INTRODUCTION OF THE PROJECT/ BACKGROUND INFORMATION

2.1 Identification of Project and Project Proponent

MS Agarwal Foundries Pvt. Ltd., established in 2005, is a leading steel company manufacturing

Sponge Iron, MS Billets, Structural Steel and TMT Steel Bars. We are ISO 9001:2008 certified

company and the products what we are manufacturing are also BIS registered.

With a progressive vision and focus on customer’s interests, the company expanded its

business operations in retail sector by adding MS Life Brand with Fe 500 & Fe 550 grades.

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The Manufacturing Process using raw materials, right from Iron ore, coal and dolomite in our

DRI unit to the final product, Steel rebars are in-house manufactured in our integrated steel

plant, gives us that Extra edge required to serve all our clients with the best quality product at

extremely competitive prices. Empowered with the most qualified and experienced personnel,

M/S. Agarwal Foundries Pvt. Ltd comes up with the best possible deal for our customers and

deliver products that meet their categorical requirements without compromising on quality.

Coupled with prompt service back up, our products and services have earned M/S Agarwal

Foundries Pvt. Ltd, a reputation of being a reliable and favored company in the construction

field arena.

2.2 Brief Information about the Project

The company is proposing to expand the induction furnace and rolling mill production at Sy. No.

158 (part) 159 (part), 166-170, village- Chetlagoraram, Mandal- Toopran, District- Medak,

Telangana.

2.3 Need for the Project and Its Importance to the Country or Region

The demands of steel are increasing day by day in India due to rapid Industrialization, Booming

in construction sector and other infrastructure project. Considering the said scenario, M/s.

Agarwal foundries Pvt. Ltd. is proposing to increase in Exesting steel plant capacity.

2.4 Employment Generation

This plant will keep the skilled manpower hence the local village people are exposed to the

skilled jobs and get feeding to their livelihood. The estimated manpower requirement for

expansion is 100. Employment will be provided for the surrounding village’s people those who

are educated also. The status of socio economic will improve in these rural areas.

3.0 PROJECT DESCRIPTION

3.1 Type of Project Including Interlinked and Interdependent Projects, If Any.

No interlinked projects were associated with this project.

3.2 Location

M/s Oswal Smelters (P) Ltd. is located at Sy. No. 158 (part) 159 (part), 166-170, village-

Chetlagoraram, Mandal- Toopran, District- Medak, Telangana and falls between the latitude

17o45’25.23” N and longitude 78o30’24.97” E. The industry is situated at around 45 km from

Hyderabad city.

Location of the Project is shown in Figure – 1 and study area map is given in Figure -2.

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FIGURE – 1: LOCATION MAP

Project Site

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FIGURE – 2: 10-KM TOPOGRAPHICAL MAP

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3.3 Details of Alternate Sites

No alternate site was considered. As this is an expansion project, the land adjacent to the

existing land has been selected.

3.4 Size or Magnitude of Operation

Existing Production Capacity

Induction furnace 2,05,000 TPA

Rolling Mill 3,69,000 TPA

Proposed Production Capacity



Total Production Capacity after Expansion



3.5 Project Description with Process Details

3.5.1 Induction furnace

The induction arc furnace operates as a batch melting process producing batches of molten

steel known “heats”. The furnace operating cycle is called the tap-to-tap cycle and is made up

of the following operations:

• Furnace charging

• Melting

• Refining

• De-slagging

• Tapping

• Furnace turn-around

The process flow diagram is given below:

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3.5.2 TMT Bar

Hot Billet received from Steel Melt Shop are inspected and cut to length as per the size of TMT

to be rolled. These hot billets are directly sent to rolling mill via hot charging conveyor without

any preheating.

The hot Billets are passed through roughing stands and then goes to Continuous Stands. These

stands are with A.C. motor for Variable speeds. After that the bar passes through TMT Box

where it goes under Thermo Mechanical Treatment to improve upon Corrosion Resistance and

Mechanical properties like Yields tress, Elongation, Bending, Tensile strength, etc.

After passing through TMT box, the bar is cut into lengths to accommodate on cooling bed.

After the bar is cooled it is cut into fix lengths as per requirement of market through Shearing

Machine. At an interval of 1 hour a sample is drawn for checking weight per meter and

mechanical properties. The TMT process is given below:

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3.6 Raw Material Required Along With Estimated Quantity, Likely Source, Marketing Area of Final

Product/S, Mode of Transport of Raw Material and Finished Product

The raw materials required for the production induction furnace and TMT Bar is given below:

Sr. No. Particular Quantity (TPA) Source Mode of

Transportation

1 Sponge Iron 421200 Sister Industry/Open

Market By road

2 Scrap 168480 Open Market By road

3 Pig iron 105300 Open Market By road

Material Balance for Billets

Input TPA Out Put TPA Sponge Iron 421200 Billets 600000 Scrap 168480 Slag 77330 Pig Iron 105300 Burning Losses 9858 Additives 7020 Others Losses 14812 Total 702000 702000

Rolling Mill

Input TPA Out Put TPA Billets 600000 TMT bar 582000 Waste fines (3%) 18000 Total 600000 600000

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3.7 Resource Optimization/ Recycling and Reuse

Water will use for cooling system, Scrubbers, Domestic and greenbelt purposes. Cooling water

will be recirculating in system. Slag will be sold to bricks and construction industry.

3.8 Availability of Water Its Source, Energy/ Power Requirement and Source

3.8.1 Water Requirement

The manufacturing process does not require water in process. The water requirement in the

Project will be for cooling purpose, domestic consumption and green belt development. The

details of water requirement for different purposes are presented below:

Water Requirement

Item Water Requirement in

KLD

(Existing)

Water Requirement in

KLD

(Proposed)

Total Water

Requirement

(KLD)

Cooling Purpose 60 220 280 Scrubber 25 40 65 Domestic Purpose 10 10 20

Dust Suppression

Greenbelt 30 - 30 Total 125 270 395

3.9 Quantity Of Wastes to be Generated (Liquid And Solid) And Scheme For Their Management/

Disposal

3.9.1 Solid Waste Generation& its Disposal

Slag will be sold to construction industry and mill waste will be sold to cement industry. The

details of solid waste are given in below table:

Particular Quantity (TPD) Slag 215 TPD Mill Waste 50 TPD

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3.9.2 Liquid Effluent

No liquid effluent will be generated at the plant site. The domestic wastewater generated will

be treated in STP and treated water will be reuse for green belt development.

4.0 SITE ANALYSIS

4.1 Connectivity

4.1.1 Nearest Railway Station

Devarapalli - 2Km from the plant site.

4.1.2 Nearest Airport

Hyedrabad airport is 45 km from the plant site.

4.2 Land form, Landuse and Land Ownership

The Land use conversion already done.

4.3 Topography

The topography of the region is mostly plain dry industrial land and the climatic conditions are

semi-arid. The average annual rainfall is 700 mm, and the maximum and minimum

temperatures are 45 oC & 16oC respectively.

There are no Ecological and Sensitive areas like Religious and Historic places, Archeological

Monuments, Scenic Areas, Hill Resorts, Biosphere reserves, National Parks and Sanctuaries,

Seismic Zones and Defense installations within the circular area of 10 km radius from plant site.

5.0 PLANNING BRIEF

5.1 Planning Concept

The proposed project involves additional in Induction Furnace and rolling mill production.

5.2 Population projection

The man power of plants includes manager, Engineer, skilled and unskilled Labours and medical

officers etc. As for the socio-economic is concerned from the plant activity nearby villagers shall

get in direct employment for about 350 persons. The proposed plant activities also shall bring

the positive change in the villages as the mine shall provide direct employment to more than

100 people indirectly.

5.3 Land use planning

The project is located in 32 Acres land. There will not be change in land use as the land already

has converted in Industrial Area.

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Sr. No. Existing Area (Acres) Proposed Area (Acres) Total Area

(Acres)

Plant Area 11.0 6.0 17.0

Road Area 3.0 - 3.0

Open Area and

Future Expansion

Area

7.44 - 1.44

Greenbelt Area 10.56 - 10.56

Total 32.0 32.0

5.4 Assessment of Infrastructure Demand (Physical & Social)

On the basis of the preliminary site visit, the infrastructure demand in the villages was assessed

on the basis of need and priority. The assessment will be made in the socio economic survey

&will be submitted at the time of final presentation regarding Environment Clearance.

5.5 Amenities/Facilities

Rest shed, first-aid centre, ambulance service, drinking water facilities, will be provided.

6.0 PROPOSED INFRASTRUCTURE

6.1 Plant Area (Processing Area)

The main plant area comprises of Induction furnace area and rolling mill area, raw material

handling area, storage area and greenbelt area etc.

6.2 Residential Area (Non Processing Area)

As the local persons will be given employment, no residential area/ housing is proposed within

the mining lease area.

6.3 Green Belt

More than 1/3rd (10.56 acres) of total land availability is reserved for plantation i.e. greenery.

Greenbelt development plan

• Local DFO will be consulted in developing the green belt.

• Greenbelt of 33% of the area will be developed in the plant premises as per CPCB

guidelines.

• The tree species to be selected for the plantation are pollutant tolerant, fast growing, and

wind firm, deep rooted. A three tier plantation is proposed comprising of an outer most

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belt of taller trees which will act as barrier, middle core acting as air cleaner and the

innermost core which may be termed as absorptive layer consisting of trees which are

known to be particularly tolerant to pollutants.

6.4 Water Management

About 395 KLD will be required for steel project. This water will be supplied from ground water.

6.5 Sewerage System

The domestic wastewater generated will be sent to septic tanks followed by soak pits.

6.6 Industrial Waste Management

No industrial waste will be generated at the plant site. The domestic wastewater generated will

Treated in STP.

6.7 Solid Waste management

Slag will be sold to construction industry and mill waste will be sold to cement industry.

7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN

There will be no displacement of houses. Hence rehabilitation and resettlement is not

envisaged.

8.0 PROJECT COST ESTIMATES

The total cost for expansion project will be around Rs. 40 Crores.

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

9.1 Financial and Social Benefits with Special Emphasis on the Benefit to the Local People

Including Tribal Population, If Any, In the Area.

The proposed Expansion plant will provide employment to about 100 local people and helping

them earn livelihood. The infrastructure facilities also will be improved in the surrounding area.

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Annexure 1: Plant Layout

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modernization cum expansion of induction furnace...

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