pre feasibility report -...

Alaknanda Sponge Iron Limited P.S. Kanksa, Mouza- Bamunara, Village- Gopalpur, Dist- Burdwan, West Bengal, Pin -713212

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ALAKNANDA SPONGE IRON LIMITED

PRE FEASIBILITY REPORT

P.S. - KANKSA, MOUZA-BAMUNARA, VILLAGE-GOPALPUR, DISTRICT- BURDWAN,

WEST BENGAL, PIN -713212


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TABLE OF CONTENT

1 EXECUTIVE SUMMARY 4

2 INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION

2.1 Identification of the project and project proponent 5

2.2 Brief Description of Nature of Project. 7

2.3 Need for the Project & Importance to the Country 7

2.4 Demand and Supply gap 13

2.5 Imports Vs. Indigenous production 16

2.6 Export Possibility 16

2.7 Domestic/Export Markets 17

2.8 Employment Generation (Direct & Indirect) due to the project 18

3 PROJECT DESCRIPTION

3.1 Type of Project including Interlinked and Interdependent Projects, if any 19

3.2 Location (map showing general location, specific location and project

boundary & project site layout) with coordinates

19

3.3 Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental consideration gone into should

be highlighted.

22

3.4 Size and Magnitude of Operation 22

3.5 Project description with process details (a schematic diagram/flow chart showing the project layout, components of the project etc.

should be given)

23

3.6 Raw Material Required Along Estimated Quantity, Likely Source, and

Marketing Area of Final Product/s Mode Of Transport Of Raw

Material And Finished Product.

24

3.7 Resource optimization/recycling and reuse envisaged in the

project, if any, should be briefly outlined.

24

3.8 Availability of water its source, Energy/Power requirement and source should be given.

25

3.9 Quantity of waste to be generated (liquid and solid) and scheme for

their management/disposal.

26

4 SITE ANALYSIS

4.1 Connectivity 26

4.2 Land form, Land use and Land ownership 27

4.3 Topography (along with map) 28

4.4 Existing land use pattern 29

4.5 Existing Infrastructure 31

4.6 Soil Classification 32


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4.7 Climatic data from secondary sources 32

4.8 Social Infrastructure available 32

5 PLANNING BRIEF

5.1 Planning concept 35

5.2 Population Projection 35

5.3 Land use planning 36

5.4 Assessment of Infrastructure Demand (Physical & Social) 37

5.5 Amenities/Facilities 38

6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area) 38

6.2 Resident Area (Non Processing Area) 39

6.3 Green Belt 39

6.4 Social Infrastructure 40

6.5 Connectivity (Traffic and transportation Road/Rail/Metro/Water ways etc)

40

6.6 Drinking Water Management (Source & supply of water) 40

6.7 Sewerage System 41

6.8 Industrial Waste Management 41

6.9 Solid waste Management 42

6.10 Power Requirement 42

7 REHABILITATION AND RESETTLEMENT(R&R PLAN) 42

8 PROJECT SCHEDULE AND COST ESTIMATES

8.1 (Likely date of start of construction and likely date of completion (time

schedule for the project to be given)

43

8.2 Estimated project cost and along with analysis in terms

of economic viability of the project.

43

9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) 44


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1. EXECUTIVE SUMMARY

Alaknanda Sponge Iron Limited is one of the renowned manufacturers

engaged in offering a durable range of TMT Bars. Mainly the group manufactures

sponge iron, steel billets, TMT bars and trades minerals like iron ore and

manganese ore. The company manufactures various products complying with the

international standards of quality. These corrosion resistant and highly durable

products are ideal for reinforcement, construction of Bridges, Dams, Industrial

Structures, Coastal Construction, High-rise Buildings, Thermal & Hydel Power

Plants, Underground/Raised Platforms, and Concrete Reinforcement.

The Company’s registered office is situated at 41A, A.J.C. Bose Road, Diamond

Prestige Building, 2nd Floor, Room No. 213, Kolkata – 700017.

The existing manufacturing unit is located at P.S Kanksa, Mouza- Bamunara,

Village- Gopalpur, District- Burdwan, Durgapur –713212 on a freehold land of 6.59

acres.

However subsequently realizing the importance, the management has decided to

install 2 x 20 Tonnes Induction furnace with Ladle Refining Furnace and 100000

MTPA Rolling Mill. For that new project the company has purchased an adjacent

land of 6.98 acres at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District-

Burdwan, Durgapur –713212.

http://www.indiamart.com/vsp-udyog-pvtltd/profile.html


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2. INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION

2.1. Identification of the project and project proponent.

In order to raise the production and also ensuring steady supply of billets, as well

as the importance of economy of scale, the management of Alaknanda Sponge

Iron Limited has decided to increase steel melting capacity by setting up

Induction Furnace unit.

Now the company is going to operate a steel plant comprising of 2 nos. Induction

furnaces of 15 MT each and 4x7 meter 2 strand continuous caster with provision

of third Strand for production of Billets and also a 240 Tonnes/day Rolling mill with

wire rod block mill line for manufacturing TMT Bars and rounds.

However, realizing the magnitude of economy of scale and higher profitability the

management comes to a decision to go for the following addition:

Particulars Existing Subsequent

Modification/Addition

Induction Furnace 2 no 15 MT - Consent to Establish

obtained from (WBPCB)

2 no 20 MT

M.S. Billets 84600 Tonnes/ Annum 112800 Tonnes/

Annum

Continuous Caster 1 Nos. 4x7 Meter 2 strand- Consent to

Establish obtained from (WBPCB)

-

Rolling mill 72000 Tonnes/ Annum - Consent to

Operate obtained from (WBPCB)

100000 Tonnes/

Annum

Ladle Refining

Furnace

- 25MT


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ESTIMATION OF PROPOSED PLANT CAPACITY

No of Induction Furnace 2.00

Capacity (MT) MT 20.00

Total Production (MT) /heat MT/heat 40

No of Heats Per day 10

Number of days available Per annum 300

Total Liquid Metal Production MT 1,20,000

Actual Yield of Billets @ 94% MT 1,12,800

BACKGROUND OF THE PROMOTERS

The background of the key promoters is given as follows:

Particulars Description

Name Shri Vishal Saraogi

Father’s Name Shri Raj kumar Saraogi

Educational Qualification Graduate

Age 41 Years

Address Flat No 605, Akashdeep, 493B/3, G.T. Road (South),

Howrah-711102

Existing Activity Is in manufacturing of TMT for past 10 years under the

brand name Kamdhenu & Kay2 and in Steel Trading business

for last 20 years

Director/ Partner other

than Alaknanda Sponge

Iron Limited

1) Alaknanda Metals Pvt. Ltd., 2) Green View Goods Pvt. Ltd.

3) Golden Casting & Ispat Ltd.


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2.2. Brief Description of Nature of Project.

In a modernization drive, the management has decided to install 2 no. of 20 MT

Induction Furnace adjacent to the existing plant area.

Existing: 2 No. 15MT Induction Furnace, 1 Nos. 4x7 Meter 2 strand Continuous

Casting Machine with provision of third Strand, 1 Nos. 240 Tonnes/day Rolling mill

with wire rod block mill line

Expansion: Addition of 2 No. 20 MT Induction Furnace, 1 Nos. 310 Tonnes/day

Rolling mill, Ladle Refining Furnace

2.3. Need for the Project & Importance to the Country

Steel is important for growth of any modern economy and is considered to be the

backbone of human civilization. Steel industry is the second biggest industry in

Particulars Description

Name Shri Anand Saraogi

Father’s Name Shri Raj kumar Saraogi

Educational Qualification Graduate

Age 46 Years

Address Flat No 605, Akashdeep, 493B/3, G.T. Road (South),

Howrah-711102

Existing Activity Is in manufacturing of TMT for past 10 years under the

brand name Kamdhenu & Kay2 and in Steel Trading business

for last 20 years

Director other than

Alaknanda Sponge Iron

Limited

1) Alaknanda Metals Pvt. Ltd., 2) Green View Goods Pvt. Ltd.

3) Jhankar Tradelinks Pvt. Ltd. 4) Alaknanda Ispat Pvt. Ltd.

5) Alaknanda Infraproperties Pvt. Ltd. 6) Jindal Steel


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the world after oil and gas with an estimated global turnover of USD 900 billion.

Steel is used in every important industry: energy, construction, automotive and

transportation, infrastructure, packaging and machinery. It is also the main

material used in delivering renewable energy such as thermal, solar and tidal

power. The housing and construction sector is the largest consumer of steel

today, using around 50% of steel produced. Per capita consumption of steel is

treated as one of the significant index for measurement of socioeconomic

development level and living standards of the people in any country. Steel industry

is in the front line in the liberalization of the industrial sector and has made fast

steps since long. The new plants have also brought about a larger regional

dispersal easing the domestic supply position. The domestic steel industry faces

new challenges. The domestic demand too has not improved to significant levels.

The Indian steel industry is broadly categorised into public sector and private

sector players. These players are either integrated producers or standalone

producers of various steel products.

From assessment of secondary information, it is noted that

Integrated Producers are players whose value chain extends from iron ore

processing to finished steel production at a single location or at a combination of

locations.

Public sector players like Steel Authority of India Limited (SAIL), and Rashtriya

Ispat Nigam Limited (RINL) as well as private players like Jindal Steel and Power


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Limited JSPL, Jai Balaji Industries Limited, Tata Steel and JSW Steel are

integrated producers.

These players mostly adopt the primary route for manufacturing steel.

The major charecteristics of the integrated producers are,

Integrated players are big in size with facility starting from BF to rolling mills, that

is they operate in the entire value chain.

Some of the integrated players also have iron ore mining facility of their own or

through their subsidiary companies.

These players generate better margin because of their presence in the entire value

chain.

Overall, many of these players have been the pioneers in the industry in India.

Standalone Producers are referred to those players, who may not be operating in

the entire value chain, rather they operate in one or two intermediates/ products

lines only. These include players like Essar Steel, Lloyds Steel and Ispat Industries.

These players mostly adopt the secondary route for manufacturing of steel.

The charecteristics of the standalone producers are,

They does not operate across the value chain.

A large number of small players exists in the secondary producers segment.

While large players among the standalone producers enjoy economics of scale,

small players strive for survival.

In standalone producers there are almost 33 working Electric arc furnace (EAF)

based units and 970 working Induction furnace-based units in India.


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India is the first country using Induction Melting Furnaces for making mild steel. As

a matter of fact, EAFs are not making mild steel of structural quality for over a

decade now. The bulk of structural quality mild steel for long products is

manufactured by Induction Melting Furnaces. During 2001-2002 period, over 4.5

million tonnes of steel were produced by Induction Furnaces. The EAF units have

also installed Induction Melting Furnaces.

There are several reasons for the popularity of Induction Melting Furnaces for

making steel as

● They consume less power compared to EAFs.

● Expenditure on electrode is nil.

● They use lesser quantity of refractory.

● Initial investment is less on plant and equipment.

Thus, there are economic advantages in making steel through Induction Furnaces

route. The only snag is that at present bulk quantity steel cannot be produced

through Induction Furnace route.

Overview of Steel Sector:

Slow down in Chinese consumption to keep global steel demand depressed in FY

2016.

Automobile sector to drive domestic demand for steel consumption in the near

term, however cheaper imports to be a major concern for Indian steel producers.


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Following the sharp correction in international prices of iron ore, NMDC has

reduced the price of iron ore fines (65 Fe) by as much as 20% and lumps by

6% at the start of FY16.

After the enactment of the Mines And Mineral (Development &

Regulation) Amendment Act , 2015 (MMDR Act 2015), mining leases which

expired after their first renewal stand automatically extended till 31 March

2020 (for merchant miners) and up to 31 March 2030 (for captive miners).

The domestic iron ore industry has suffered considerably in the last 3-4 years

due to compliance and regulatory issues. A rule based system (auction by

competitive bidding) is likely to mitigate such risk in the future.

Contribution to District Mineral Foundation, as per the MMDR Act is estimated to

raise the cost of steel production in India. As per the MMDRA Act 2015, for

leases signed before January 2015 the Government has recommended up to

100% of the royalty payment to be shared by the miners with the District

Mineral Foundation (DMF) which will be used for development activities in areas

affected by mining.

World steel capacity utilization declined to 76.7% in FY14 from 78.4% in FY13

as a result of surplus capacity and weak demand conditions globally. As per the

World Steel Association (WSA), crude steel production growth stood at 1.2%

in FY15. Slowing economic growth and clampdown on pollution by the

government in China reporting lowest production growth since 1981.


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The global steel sector remains under pressure: Excess capacity to put pressure

on the global steel sector particularly in light of the uneven economic growth and

weak steel demand. Globally several rapid growth markets have not performed

up to the expectations in creating demand during the past two years.

Indian steel industry : Production for Sale (in million tonnes)

Category 2010-11 2011-12 2012-13 2013-14 2014-15

Pig Iron 5.68 5.371 6.870 7.950 9.694

Sponge Iron 25.08 19.63 14.33 18.20 20.38

Total Finished Steel (alloy +

non alloy)

68.62 75.70 81.68 87.67 91.46

Source: Joint Plant Committee

Period Demand

(consumption)

Production

Capacities

Utilisation %

Imports

Exports

2010-11 65 64 71 90 5.8 3.2

2011-12 70 77 89 86 5.4 4.2

2012-13 71 77 93 82 6.3 4.8

2013-14 73 85 111 76 4.3 5.5

2014-15 77 88 120 73 6.8 4.8


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2.4. Demand and Supply gap

Demand - Availability Projection

Demand – availability of iron and steel in the country is projected by Ministry of Steel

in its Five Yearly Plan documents.

Gaps in availability are met mostly through imports.

Interface with consumers by way of a Steel Consumers’ Council exists, which is

conducted on regular basis.

Interface helps in redressing availability problems, complaints related to quality.

Demand Supply Gap

Table - 1 Shows The Gap In Demand And Supply For The Period FY06 To

FY11.

Table - 1: Domestic Steel Demand Supply Gap (in MMT)

Description FY-08 FY-09 FY-10 FY-11 FY-12

Demand 58.03 58.57 64.76 69.35 71.82

Supply 56.08 57.16 60.62 66.01 69.24

Gap 1.95 1.40 4.13 3.34 2.57

Source: Ministry of Steel (GOI) and MM Analysis

Demand supply gap exists in the domestic steel market which can be attributed from

the fact that imports have been always more than exports during FY08-12. Hence the

excess demand has been met by imports.


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Demand

Figure - 1 represents the doemestic demand for finished steel. The doemstic

apparent consumption have been considered has historic demand for India. It is

observed that:

Domestic demand for steel has registered a CAGR of 6.58% during the period

2007-12.

The demand shrunk in FY 09 influenced by the slow down in the industrial and

infrastructure activity due to global recessionary impacts.

The same rebounded in FY10 due to increased infrastructure investment. The Y-o-

Y growth over FY09 has been attractive at 10.6%.

Figure: 1 Domestic Demand of Steel

Source: MOS and MM Analysis

Supply

The production trend for steel have been indicated. It is inferred from the analysis

of the that:


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Domestic production registered a CAGR of 5.7% during 2007-12.

Although the domestic steel industry have been growing steadily to pace up with

the demand, it is noted that the growth rate in production have been lagging

behind the growth rate in demand.

The decline in growth during FY12 can be attributed to the fact that the industry

faced raw material constraint in the form of shortage of iron ore.

The demand supply gap may be as follows:

(Figure in MnT)

Products 2017 (Phase -1) 2021 (Phase 2) 2027 (Phase 3)

Projected Demand 117.52 152.24 200.84

Supply from Domestic

producers

111.76 143.16 184.80

Demand supply Gap 5.76 9.08 16.04

The demand supply gap is met through imports. However the domestic suppliers have

the option to narrow down the gap. The Indian steel industry is expected to turn

around with a sizable growth in years to come.


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2.5. Imports Vs. Indigenous production

The state and pattern of growth of the economy determine the steel requirement.

The requirements of steel may be fulfilled either through indigenous production

and/or through imports. It is not possible for a developing country to import huge

quantities of steel because of foreign exchange constraints where as it is better for

a country to be self-sufficient in its steel requirements. Table 2 gives the equation

for 2019-20 and the projected compounded annual growth rates for production,

imports, exports and consumption in India.

Table 2: Production, Imports, Exports and Consumption of Steel

(in million tonnes) Production

Production Imports Exports Consumption

2019-20 110 6 26 90

2004-05 38 2 4 36

Compounded

Annual Growth

Rate (CAGR)

7.3% 7.1% 13.3% 6.9%

Source: www.steel.gov.in /nspolicy2005.pdf (National Steel Policy –

2005)

2.6. Export Possibility

In 2014, the world crude steel production reached 1665 million tonnes (mt) and

showed a growth of 1% over 2013. India remained at the 3rd position as the

world’s crude steel producer in 2015. There may be large opportunities to become


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a global supplier of quality steel. Also there exists ample market opportunities in

the neighboring regions of Asia, Africa and the Middle East.

2.7. Domestic/Export Markets

Import Export Trend

The domestic import export trend of steel during FY08-12 is indicated in Figure 2.

Figure 2 : Steel Imports Exports Trend

Source : MoS and DGFT

It is observed that, import has been in an increasing trend, while export is

declining. To be specific, while import has increased at a CAGR of 6.1% during

FY08-12, export has registered a negative CAGR of 5.1% during the same period.

Import Export trend of steel during 2013-14 & 2014-15 are given below:

Total Finished Steel (Alloy + Non Alloy) (In Million Tonnes)

Year 2013-14 2014-15

Imports 5.45 9.32

Exports 5.98 5.59

Source: Joint Plant Committee


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2.8. Employment Generation (Direct & Indirect) due to the project

The manpower for additional project is given as per the Table below.

Personnel & Employment

Sl. No. Item No Per Shift Total

Induction

1. Furnace operator (Highly Skilled) 2 6

2. Assistant furnace operator (SK) 2 6

3. Gas Cutter/ Welder (SK) 2 6

4. Helper (SSK) 2 6

5. Mechanical Fitter (SK) 2 6

6. Electrician (SK) 2 6

7. Helper (SSK) 2 6

8. Pump/ Comp Attendant Attendant (SSK) 2 6

48

Workmen in Concast and LRF

9. Skilled Workmen 2 6

10. SSK 4 12

18

Rolling Mill

11. Operator 2

12. Skilled Manpower 12

13. Unskilled 30

14. Electrician 2

15. Laboratory 2

16. Maintenance 4

52


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3. PROJECT DESCRIPTION

3.1. Type of Project including Interlinked and Interdependent Projects, if

any

Alakananda’s TMT bars are available in varied sizes like 10,12,16,20,22,25,28 and

32. They even make custom made products according to customer requirements.

The products are characterized as follows:

Trade Mark – Kamdhenu & Kay2 TMT

Grades – Kamdhenu & Kay2 TMT Grade Fe- 415, Fe - 500, Fe -415D & Fe – 500D

Diameter - 8,10,12,16,20,25 MM (28 and 32 min. On bulk demand)

Standard Length - 5.5 mtrs. To 12 mtrs.

3.2. Location (map showing general location, specific location and project

boundary & project site layout) with coordinates.

The factory is located at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District-

Burdwan, Durgapur –713212, at a distance of 1.0 Km from NH2. The distance of

site from Durgapur railway station is about 5 Km. The area has been declared as

Bamunara Industrial Area by Asansol Durgapur Development Authority. Original

land surface is little undulating and irregular in shape which has been developed

after taking up the project.

Total land area is around 13.57 acres. The existing freehold land area is 6.59 acres

and is occupied with the existing facilities. For the new project the company has


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purchased an adjacent land of 6.98 acres. The site is falling under Gopalpur Gram

Panchayet. The latitude and longitude of the project site is 23°30'1"N, 87°22'22"E

respectively.


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3.3. Details of alternate sites considered and the basis of selecting the

proposed site, particularly the environmental consideration gone into

should be highlighted.

At a suitable distance from forest cover

Far from nearest habitation

Near a convenient perennial water source

Proximity of NH2

3.4. Size and Magnitude of Operation

Main input raw material required for production of TMT Bar/ Rounds is Ingot/

Billet. These Ingots/ Billets are manufactured through Induction Furnace. Sponge

iron, Steel scrap, Pig iron, Silicon Manganese and other Ferro Alloys are needed to

manufacture Ingot/ Billet.

Size and Magnitude of operation of the existing and proposed projects include:

1. Two Sets 15 MT Induction Furnace - Consent to Establish obtained from (WBPCB)

2. Two Sets of 20 MT Induction Furnaces (Proposed Addition)

3. 1 Nos. 4/7 M Radius Continuous Casting Machine - Consent to Establish obtained

from (WBPCB)

4. Rolling mill with wire rod block mill line- 72000 Tonnes/ Annum- Consent to

operate obtained from (WBPCB)

5. Rolling mill-1,00,000 Tonnes/ Annum (Proposed Addition)


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6. Ladle Refining Furnace- 25MT for removal of Phosphorous and Sulphur

(Proposed Addition)

3.5. Project description with process details (a schematic diagram/flow chart

showing the project layout, components of the project etc. should be

given)

FLOW SHEET OF MANUFACTURING PROCESS AS A WHOLE

Liquid Metal Scrap

Billets

TMT REBARS/ WIRE RODS

Sponge Iron

Pig iron/Scrap

Fluxes/deoxidizers

Induction

Furnace

CCM

Rolling Mill


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3.6. Raw Material Required Along Estimated Quantity, Likely Source, and

Marketing Area of Final Product/s Mode Of Transport Of Raw Material

And Finished Product.

Raw Material Requirement at 100 % Capacity

Induction

Sponge Iron MT 83280

Pig Iron MT 54720

Ferro Manganese MT 672

Ferro Silicon MT 192

Aluminium Shot MT 60

Induction (per MT of liquid metal)

Sponge Iron MT 0.6940

Pig Iron MT 0.4560

Ferro Manganese MT 0.0056

Ferro Silicon MT 0.0016

Aluminium Shot MT 0.0005

3.7. Resource optimization/recycling and reuse envisaged in the project, if

any, should be briefly outlined.

The installation will comprise of Two Units of Induction Steel Melting equipment,

each consist of Two No. Furnace Crucibles to function alternately in running or

standby mode and powered by One No. Solid State Power Supply, with One No.

Hydraulic Power Unit remote controlled through an operating console to facilitate


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Furnace Tilting / Metal Pouring. One Operator’s Control Desk shall be provided to

facilitate start-up, shut-down, power control, metering and annunciation; while

lever operated switches shall be provided with each Furnace Crucible for quick

selection and changeover.

3.8. Availability of water its source, Energy/Power requirement and source

should be given.

Electricity: The existing connected load is 15 MW and the proposed load would

be 20 MW in view of the new project and which will be sourced from DVC.

Water: Water requirement in the plant is for cooling (make-up) and domestic &

other purposes. The required water will be sourced from deep water tube well. The

total water requirement is given below:

Particulars Requirement (KLD)

Cooling Water (Make up) 9.0

Domestic purposes & Others 5.5

Total 14.50

PLANT COOLING SYSTEM

The Ground Water Reservoir of suitable capacity is filled with properly treated

water with desired level of softness. The Cooling system shall have two Cooling

Towers and four sets of Pumps. The heat absorbed by the soft water from the


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Furnace Coil, cables & the Heat Exchanger Primary is effectively cooled by the

Cooling Tower from a maximum of 460C down to 320C.

3.9. Quantity of waste to be generated (liquid and solid) and scheme for their

management/disposal.

Furnace slag will be generated as solid wastes from proposed expansion. In the

proposed unit there will be one no. of crusher cum magnetic separator. The same

will be crushed into coarse and segregated into metallic and non-metallic contents.

Metallic contents will be recycled back as raw material for captive utilization and

non-metallic contents will be disposed off for land filling or road construction. In

Induction furnace ore slag will be generated. The quantity of slag will be 800

Tonnes/month (approx). It will be disposed for land filling and road construction.

Approx. 20 Tonnes /month dust will be generated from Air pollution control system

which will be utilized in making the fly ash bricks. Scrap (Approx. 15 Tonnes

/month) from Induction furnace will be reused. Mill scale from rolling 16

Tonnes/month (approx) will be recycled in Induction furnace.

4. SITE ANALYSIS

4.1 Connectivity

The area is well connected by road to Durgapur town as well as to other industrial

town like Asansol, Raniganj, Dhanbad and other the adjoining areas by recently

developed Durgapur Expressway (NH-2). The place is connected to railway station

(Easter Railway) and towns by bus, jeeps, taxi and rickshaw. All the civic amenities


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like market, bus stand, hospital, school, college, hotel, restaurant etc. all are

available in the town which is about 5-7 km from the site. Distance of important

steel consumption center is given below.

Kolkata – 158 KM Asansol – 42 KM Burdwan – 63 KM

Raniganj – 26 KM Dhandbad – 100 KM Suri – 52 KM

4.2. Land form, Land use and Land ownership.

Total land area is around 13.57 acres i.e. 54915.8417 sqm. The existing freehold

land area is 6.59 acres and is occupied with the existing facilities. For the new

project the company has purchased an adjacent land of 6.98 acres. The site is


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falling under Gopalpur Gram Panchayet at P.S Kanksa, Mouza- Bamunara, Village-

Gopalpur, District- Burdwan, Durgapur –713212.

4.3. Topography (along with map)

The area has been marked on Survey of India Topo Map No. 73 M/6 and 73 M/7.

The latitude and longitude of the project site is 23°30'1"N, 87°22'22"E

respectively.


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4.4. Existing land use pattern (Agriculture, on-agriculture, forest, water

bodies (including area under CRZ), shortest distances from the periphery

of the project to the periphery of the forests, national park, wild life

sanctuary, eco sensitive areas, water bodies (distance from the HFL of

the river), CRZ in case of notified industrial area, a copy of the Gazette

notification should be industrial area, a copy of the Gazette notification

should be given.


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Existing General land use

Agriculture land is a major category of land use analysis occupying about 47% of

the total area, of which single cropped occupied most of the area to about 44.2%

followed by double cropped only about 1%, Fallow land occupies of about 2.4% of

the total.

Forest vegetation found in the study area is dry deciduous in nature. Only about

18.5% of the study area under forest. About 15.7% is under degraded forest

where canopy cover is less than 10%. Moderate forest occupies of about 3%

followed by mod dense forest of about 2.8%.

Only about 2.5% of study area is under plantation. But there is an enough scope

for plantation (both forest as well as horticulture) in such an Industrial belt for

eco-restoration. About 3.2% of the study area is under scrub land.

About 5.6% area comes under water as surface water bodies of which, 0.5% is

under tank / pond etc. River sand occupied about 23% and river water is 1.7%.

About 20.4% comes under settlements both urban and normal about 16.3% area

under urban and 4.1% area is under rural settlements. Industrial area occupies

about 2.6% of the total.

Shortest Distance From Following Particulars

Periphery of the project to periphery of the forests - Within 10 km

Wild Life Sanctuary: - None (within 10 km)

Eco sensitive area: - None (within 10 km)


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Water bodies (distance from the HFL of the river)-1. Damodar river (within 10 km)

Notified industrial area: - None (within 10 Km)

4.5. Existing Infrastructure

Alaknanda Sponge Iron Limited is manufacturing MS Billets, TMT Bars and Rounds

at the existing land.

The present status of statutory clearances is given as follows:

Particulars Current Status

Land Conversion For new project, land of 6.98 acres has been

purchased. Registration and mutation are completed.

Sanction plan for new

project

Available from the factory inspector

NOC from Pollution

Control board

Induction Furnace

Rolling Mill

Continuous Caster

2 × 15 MT - Consent to Establish obtained from

(WBPCB)

240 Tons Per Day Rolling Mill with Wire Rod Block Mill

line - Consent to Operate obtained from (WBPCB)

4 X7 Metre 2 strand Continuous Caster with provision of

third Strand - Consent to Establish obtained from

(WBPCB)


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4.6. Soil Classification

Durgapur area in Bardhaman district of West Bengal is overlain by a thin alluvial

cover and forms a transition zone between hard rock and flat gently sloping

alluvial terrain. The alluvial area stretches eastwards beyond Durgapur to the rest

of the district. Alluvial cover thickness in the Durgapur area increases in the

eastward direction.

4.7. Climatic data from secondary sources

Durgapur experiences a mixed transitional climate between the tropical wet and

dry climate and the more humid subtropical climate. March to May is dry summer

intervened by tropical cyclonic storms. June to September is wet summer while

October is autumn. Average temperature during summer season is 32 °C while at

the cold season is 20 °C. The maximum temperature during summer rises up to 45

°C while minimum temperature during winter comes down to 6°C. Average rainfall

is 1350 millimetres with the bulk of rainfall occurring around the July-September

period. The monsoon is followed by a mild, dry winter. The normal trend is -

winter season starts from about the middle of November and continues till the end

of February.

4.8. Social Infrastructure available

The situation that prevails around the plant is depicted here: Around the proposed

plant site in Bamunara under Kanksa block, there are 20 small to medium villages

(Mouza), viz. Amlajora, Bankati, Banskopa, Birudiha, Gopalpur, Ijjatganj,


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Malandighi, Natunganj, Panagar etc. The study area surrounding proposed project

site is under Industrial cum rural area. These villages are small villages, the

highest population is 12812 in Gopalpur village. The schedule cast (SC) population

is moderate, around 40 percent of total population in all these villages. Schedule

tribe (ST) population is not significant- around 2-3 percent of total population. The

schedule cast and schedule tribe population in kanksa district is 62,329 and 18,239

respectively. The literacy rate in Kanksa and Durgapur faridpur block for male are

69% and 64.9% respectively. For the Female the literacy rate in Kanksa and

Durgapur Faridpur block are 49.9% and 47.9% respectively. The sex ratio of

Kaksa block is 923 and Durgapur – faridpur block is 877 which is much less than

the sex ratio (921) of Burdwan District.

Socio Economic Features of Kanksa block

Population Rural Urban Total population

Male 62507 16067

Female 57973 14729

Total population 120480 30796 151276

Literacy Male Female Total literacy

Rural 76.60% 54.10%

Urban 84.50% 88.20%

Literacy rate 78.20% 57% 68.10%

Cast SC ST

Male 27646 7653

Female 26226 7394

Total population 53872 15047


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Main workers Marginal workers Total workers

Total workers 37136 19896 57032

Non workers - - 94244

Agricultural labor - - 18064

Household Ind. - - 2678

Other workers - - 27479

District statistical handbook 2001

Durgapur city is governed by Municipal Corporation which comes under Durgapur

Metropolitan Region. As per provisional reports of Census India, population of

Durgapur in 2011 is 566,517; whereas male and female are 294,255 and 272,262

respectively. Even though Durgapur city has population of 566,517; its urban /

metropolitan population is 580,990 of which 301,607 are males and 279,383 are

females.

Details of Durgapur City Population are given below:

Total Male Female

City

Population

566,517 294,255 272,262

Literates 439,225 240,985 198,240

Children (0-6) 55,906 28,878 27,028

Average

Literacy (%)

86.02 % 90.81 % 80.84 %

Sex ratio 925

Child Sex ratio 936

http://www.census2011.co.in/census/metropolitan/187-durgapur.html




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5. PLANNING BRIEF

5.1. Planning concept (type of industries, facilities, transportation etc) town and

country planning/Development authority Classification.

The site is falling under Gopalpur Gram Panchayet at P.S Kanksa, Mouza-

Bamunara, Village- Gopalpur, District- Burdwan, Durgapur –713212. Necessary

development will be made with the help of local panchayet.

5.2. Population Projection

In 2011, Barddhaman had population of 7,717,563 among which male and female

were 3,966,889 and 3,750,674 respectively. Out of the total Barddhaman

population for 2011 census, 39.89 percent lives in urban regions of district. In total

3,078,299 people lives in urban areas of which males are 1,593,102 and females

are 1,485,197. Sex Ratio in urban region of Barddhaman district is 932 as per

2011 census data. Similarly child sex ratio in Barddhaman district was 935 in 2011

census. Child population (0-6) in urban region was 320,064 of which males and

females were 165,390 and 154,674. This child population figure of Barddhaman

district is 10.38 % of total urban population. Average literacy rate in Barddhaman

district as per census 2011 is 81.54 % of which males and females are 87.31 %

and 75.34 % literates respectively. In actual number 2,248,931 people are literate

in urban region of which males and females are 1,246,484 and 1,002,447

respectively. As per Barddhaman religion data, 2011, 77.85% of people are Hindu,

20.73% are Muslims, 0.27% are Christians.


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As per Census 2001, demographic status of the nearby village shows that the sex

ratio for general cast population is maximum for Rakshitpur. For the villages

Bamunara, Brindabanpur, Nabagram and Rupgang shows the sex ratio value more

than 950. On the other hand the sex ratio value of Krishnapur village is 840, which

is very much poor. The village like Banskopa, Beharpur, Birudiah and Mobarakganj

shows poor sex ratio value, which is less than 900. The literacy rate in Kanksa

block for male is 78.20% as per Census 2001. For the Female the literacy rate in

Kanksa block is 57.0%.

5.3. Land use planning (breakup along with green belt etc.)

Alaknanda Sponge Iron Limited occupies about 13.57 acre (nearly 54915.842sqm)

of land at P.S Kanksa, Mouza- Bamunara, Village- Gopalpur, District- Burdwan,

Durgapur –713212 which is falling under Gopalpur Gram Panchayet. Among total

land, the existing freehold land area is 6.59 acres and is occupied with the existing

facilities. For the new project the company has purchased an adjacent land of 6.98

acres.


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5.4. Assessment of Infrastructure Demand (Physical & Social)

Physical & Social Infrastructure

For assessment of socio-economic condition, sample survey for some villages in

the study area was conducted. Selected Parameters were medical facilities,


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electricity, drinking water facility, educational facility, public transport, post and

telegraph office, bank and entertainment facilities etc. Secondary survey has

revealed that drinking water facility is a satisfactory to the local people as all the

villages are having either well or tube well as source of drinking water. Under

medical facilities all the system such as allopathic, homeopathic and ayurvedic

medicines are available at Durgapur or local area at a distance of 2-3 kms. There

is higher educational facility in the area. There is electricity in most of the villages.

This project is providing employment for about 100 people directly and some

indirectly is providing for about 10 which are shopkeepers, mechanic, drivers and

transporter.

5.5. Amenities/Facilities

Greenbelt area may be developed in the surrounding project site.

Power is available at nearby villages.

Drinking water is available by the water tankers from nearby area.

First aid box with all necessary materials will kept all time in the office

building for use as and when required.

6. PROPOSED INFRASTRUCTURE

6.1. Industrial Area (Processing Area)

Developing of Greenbelt area inside the plant and surrounding the area.


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6.2. Resident Area (Non Processing Area)

No residential area is proposed.

6.3. Green Belt

An extensive plantation within the boundary limits of the plant is considered during

expansion project work by planting about 2300 saplings making a two row deep

green belt along the periphery (spacing 2.0 m x 2.0 m) and all along internal roads

iron ore storage areas, ground hoppers and dumps leaving only adequate truck

access. The total land area covered for greenbelt will be 33% of the total area i.e.,

18122.23 sq. mt.

LIT OF BIG TREES FOR PROPOSED PLANTATION IS GIVEN BELOW

No. Common name Scientific name Family

01. Arjun, Arjuna Terminalia arjuna Combretaceae

02. Ashwatha Ficus religiosa Moraceae

03. Akashmoni Acacia moniliformis Mimosaceae

04. Aam Mangifera indica Anacardiaceae

05. Bot Ficus benghalensis Moraceae

06. Chatim Alstonia scholaris Apocynaceae

07. Debdaru Polyalthia longifolia anonaceae

08. Ghoranim Melia azedarch Meliaceae

09. Jhaun Casuarina equisetifolia Casuarinaceae

10. Jarul Lagerstroemia speciosa Lythraceae

11. Karanj Derris indica Fabaceae

12. Krishnachura Caesalpinia pulcherrima Caesalpinaceae

13. Nim Azadirachta indica Meliaceae


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14. Pakur Ficus infectoria Moraceae

15. Radhachura Delonix regia Caesalpinaceae

16. Tantul, Tentuli Tamarindus indica Caesal pinaceae

17. Sisso Dalbergia sissoo Papilionaceae

18. Sirish Albizia Lebbeck Mimosaceae

6.4. Social Infrastructure

See section 4viii.

6.5. Connectivity (Traffic and transportation Road/Rail/Metro/Water ways

etc)

The area is well connected by road to Durgapur town as well as to other industrial

town like Asansol, Raniganj, Dhanbad and other the adjoining areas by recently

developed Durgapur Expressway (NH-2). The place is connected to railway station

(Easter Railway) and towns by bus, jeeps, taxi and rickshaw. All the civic amenities

like market, bus stand, hospital, school, college, hotel, restaurant etc. all are

available in the town which is about 5-7 km from the site. Distance of important

steel consumption center is given below.

Kolkata – 158 KM Asansol – 42 KM Burdwan – 63 KM

Raniganj – 26 KM Dhandbad – 100 KM Suri – 52 KM

6.6. Drinking Water Management (Source & supply of water)

Water: Water requirement in the plant is for cooling (make-up) and domestic &

other purposes. The required water will be sourced from deep water tube well. The

total water requirement is given below:


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The water will also be available from Rain Water Harvesting (RWH) system.

6.7. Sewerage System

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

SMS as closed circuit cooling system will be adopted. As the steel melting shop

and rolling mill will be operated on the dry process, water is used in the process is

only for the cooling. Closed circuit cooling system will be adopted in cooling of

Billets and TMT Bars/Structural steel/MS Rounds/Strips. Hence there will not be

any waste water generation from process and cooling in the steel plant. Sanitary

waste water will be treated in septic tank followed by soak pit as per PHE norms.

6.8. Industrial Waste Management

In the proposed unit there will be one no. of crusher cum magnetic separator

which will be used for separating metal from furnace slag before its disposal for

land filling or road construction. During operation, Induction furnaces will generate

slag and for this, the slag handling and disposal system will be maintained. In

Induction furnace ore slag will be generated. The dust will be generated from Air

pollution control system which will be utilized in making the fly ash bricks.

Particulars KL/Day

Proposed

Water for cooling (Make up) 9.0

Domestic purposes & other uses 5.5

Total 14.50


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6.9. Solid waste Management

The solid waste generation from the company after expansion project is proposed

to be disposed off as follows:

Type of Solid

Waste

Estimated

Generation

(MT/Month)

Process of Disposal

Slag from SMS (new

project)

800 Slag will be crushed and after

recovery of iron, the inert material will

be used in road construction and

remaining amount will be planned to

dump in an environmental friendly

manner in a separate area.

Scrap 15 Re-melted in the process.

Mill scale from

rolling

16 Will be recycled in Induction furnace.

6.10. Power Requirement

The existing connected load is 15 MW and the proposed load would be 20 MW in

view of the new project and which will be sourced from DVC.

7. REHABILITATION AND RESETTLEMENT(R&R PLAN)

(Policy to adopted (Central State) in respect of the project affected

person including home oustees, land oustee and landless labour (A brief

outline to be given).

No, R&R Plan is proposed.


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8. PROJECT SCHEDULE AND COST ESTIMATES

8.1. (Likely date of start of construction and likely date of completion (time

schedule for the project to be given)

The Schedule Of Implementation For The Proposed Project Is Given Below

Activity Commencement Completion

Land acquisition and development Acquired and developed land

Civil works, Buildings, Foundation of

Machineries

May 2016 October 2016

Structural fabrication and erection of

technological structures

June 2016 November 2016

Placement of Orders of Plant and Machinery April 2016 July 2016

Erection of Equipments August 2016 January 2017

Trial Run and Commissioning March 2017

Commercial Operation Date April 2017

8.2. Estimated project cost and along with analysis in terms of economic

viability of the project.

The cost of the project and means of finance is proposed to be as follows:

Sl.

No.

Item Cost

(Rs Lacs)

1. Land & Land Development 550.00

2. Factory Building & Other Civil Cost 1549.63

3. Plant & Machinery 4511.11


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4. Miscellaneous Fixed Assets 717.74

7328.48

5. Contingency Provision for Cost

Escalation

338.92

6. Interest During Construction 300.67

7. Margin for Working Capital 437.50

Total 8405.57

The project cost is reasonable and comparable as per our opinion in the current

date of assessment. We have also made sample checks from the market and also

discussed with the industry experts on similar field.

Means of Finance

The means of finance for the proposed project is as follows:

Particulars Rs lacs

Promoter's Contribution 2605.57

Term Loan 5800.00

Total 8405.57

D/E Ratio 2.23:1

9. ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

CONCLUSION

The technical feasibility and financial viability of the project has been reviewed

with reference to the new project with reference to overall company as a whole.


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Our review has been done on the basis of the current scenario and documents

made available to us by the company. We have made the assessment over and

made the changes in assumptions wherever felt required.

Based on our analysis it may be inferred that

a) The project is technically feasible and financially viable.

b) The overall financial liquidity and profitability parameters of the project appeared

to reasonable and satisfactory.

c) The promoters are likely to honour the commitment towards repayment of term

loan barring any unforeseen adversities.

d) We conclude the capital expenditure of the company as a viable option subject

to the weakness and threats associated with a business venture.

The operation of plant has significant positive impact on the socio-economic

environment of the area which helps to sustain the development of this area

including further development of physical infrastructure facilities. In the interest of

mineral development and improve the social conditions of the local habitants this

project should be allowed after considering all the environment aspects.

pre feasibility report -...

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