Bhandara Road, Warthi, Bhandara - 441 905Tel. : 07184 - 285551 To 285555Fax: 07184 - 285740E-mail: admin@sunflagsteel.comWebsite; www.sunfiagsteel.com

To, CIN No. : L27100MH1984PLC034003Ministry of Environment, Forest & climate Change, GSTIN No.: 27AACCS3376C1ZHIndria Paryavaran Bhawan,Jor Bagh 'Road, New Delhi-110003

Ref: SF:UTI/2018-19/2437Date: 14.06.2018

Kind attn: Director, Impact Assessment (Industry-1)

Sub.: Amendment in configuration of Integrated steel plant sanctioned videMOEF's EC letter no. J-11011/355/2004-IA 11(1) dated 02.05.2017 withoutany change in total production.

Ref.:1. MOEF's EC letter no. J-11011/355/2004-IA 11(1) dated 21.02.20062. MOEF's EC amendment letter no. J-11 011/355/2004-IA 11(1) dated 12.01.20123. MOEF's EC expansion letter no. J-11011/355/2004-IA 11(1) dated 02.05.2017

Dear Sir,

We have received environment clearance for the expansion of our integrated steelplant from 0.5 to 1.0 MTPA of steel vide EC letter no.J-11011/355/2004-IA 11(1) dated02.05.2017 subsequent to our earlier EC letter dated 21.02.2006 and amendmentdated 12.01.2012. The copies of the three letters is given in Annexure 2a to 2c ofenclosed Form 1.

While doing the detailed engineering and in view of the customers demand, we needto make some amendments to improve waste re-utilization, reduce fossil fuelconsumption, increase process efficiency and replace or install machinery to be ableto change the form of the finished product i.e. Brightening, Super alloying byadditional refining etc.

Accordingly, we are proposing the following amendments:

1. Addition of Remelting Furnace for Super Alloys i.e. 1 X 25 + 1 X 3 T/BatchElectro Slag Refining (ESR), 1 X 15 + 1 X 3 T/Batch Vacuum Arc Remelting(VAR) furnace and 1 X 6 T/Batch Vacuum Induction Melting Furnace (VIM) withtheir auxiliary equipments. The throughput in these units will be a part of theingot/billet production sanctioned in the EC letter (1.025 MTPA) .

.These are additional refining steps in the production line which will change thequality of the end product making it suitable for aeronautical, space, automobileand power generating turbine. Due to the impetus provided by the "Make inIndia" scheme of Govt of India, the demand for such high quality steel has risenand we intend to upgrade our plant to meet the requirement.

CHENNAI OFFICE: DELHI OFFICE: FARIDABAD OFFICE : ~ ..0. ~ MUMBAI OFFICE: PUNE OFFICE: REGD. OFFICE:705 7th FLOOR CHALLAMALL 047 DEFENCE COLONY PLOT No 12. SECTOR '6'. .c e ••• 0.... .~ ~ 307. HAMILTON-B. 65-59. FIFTH FLOOR. 33. MOUNT ROAD. SADAR.11/11A SIR THtAGARAYA ROAD. 2ND ·FLOOR. NEW DELHI'. 110 024 MATHURA ROAD. ~ • ..,,~... HlRANANDANI BUSINESS 'SAI KRIPA BHAVAN' PUNE NAGPUR - 440 001.lNDlAT NAGAR, CHENNAI. 600 017 TEL.: 011495760301604016050 FARIDABAD -121006 PARK. GHODBUNDER ROAD. MUMBAI HIGHWAY, OPP. KSB TEL.: 0712·2524661. 2520356.TEL.: 044-24342262·63 FAX: 01149576020 TEL.: 0129·23111161712 _1...·\N t g (?j' "\ THANE (WEST) ·400 607. PUMP. S. NO. 5743. KHARALWADI. 252035824341065 24323724 E.mail: delhioffice@sunflagsleeLcomE·mail: mkliLnz@sunflagsleeLcom ~.:.' e T111iiiii.ii " --\ TEL.: 022·25862294, 96, PIMPRI, PUNE ·411018. FAX: 0712·2520360. ' . -= 1 :'-.: 25861931 TEL.: 020-27424685 E·mail: mktg@sunflagsteeLcomFEAXI044~434SZ@7649lla t I ~ --' E-mail: mktg_wz@sunllagsteel.oom FAX: 020-27423013 .-rnai . m iL sun gs ee .com E.mail: mktgyZ@sunllagsteet.oom

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2. Addition of Metal Slag Recovery Plant (1.26 MTPA) for reducing solid waste & recovery of metal from slag of Ingot/Billet production. By this process, additional 3% metal recovery will be there, thereby reducing that much of solid waste.

3. Addition of 2 X 60 T/Batch SMS Vacuum degassing units. One SMS Vacuum

Degassing unit is already existing but proving insufficient when customer demand for VDG processed product increases. Of the two proposed, one will be operated full time to double the existing throughput from VDGs. The second proposed unit will be a stand by. To run the additional VDG unit one fuel oil operated boiler (capacity 16 TPH) will also be erected. The throughput in these units will be a part of the ingot/billet production sanctioned in the EC letter (1.025 MTPA).

4. Addition of 1 X 60 T/Batch LRF (Ladle Refining Furnace) in SMS. The overall

output from SMS will remain same. The intermediaries will be refined as per customer requirement, therefore, this is a case of change in product quality.

5. Addition of 0.32 MTPA capacity of Ingot Heating/ soaking pit furnace at

Blooming Mill to be able to roll Ingots in addition to billets. The overall steel production will remain within 1.0 MTPA as sanctioned in EC.

6. Increase in Bright Bar Units(BBU) capacity (30,000 to 60,000 TPA) and Heat

Treatment (Coil & Rod) capacity (36,000 to 78,000 TPA). Although it appears that the BBU & Heat Treatment capacity is getting enhanced, however, there will be no increase in overall steel production since bright/ heat treatment is subsequent to billet/ ingot rolling & provided/manufactured only on customer demand. There will be only change in finishing of the product.

7. Addition of Sinter Boiler of capacity 5.7 TPH. This will increase the productivity

by increasing permeability of input material. 8. Addition of Combuster with coal handling plant (9.5 MW). This will serve as an

alternate heat source during shut down of one sponge iron kiln of 500 TPD (DRP 1), to continue operation of existing WHRSG for DRP 1. Due to use of combuster during shut down of DRP-1, the overall coal consumption will reduce in the entire plant. The water consumption will decrease from 125 to 2 KLD during the DRP-1 shut down and combustor operation.

9. The replacement of cryogenic oxygen plant of 15,000 TPA (as sanctioned in EC)

by PSA oxygen plant of 140 TPD. This is required to increase the productivity of pig iron/ hot metal plant by adding 93% purity PSA oxygen along with blast of air.

10. An LPG storage of 60,228 kg is proposed. This is required for operation of

hardening/ annealing furnace and billet / bloom cutting at CCM, etc. By supplying LPG through pipelines instead of cylinders, this will be cost effective and hence, reduces the cost of production.

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11. Addition of coal drier 300 TPD capacity.Presently in DR Plant, wet coal is fed during rainy season which hampers productivity. To minimise this, it is intended to install one drier so that part of coal fed can be dried. Drying will be done inside the rotary drum where moisture removal will take place with the help of heat provided by furnace oil / LDO / HSD. This drier will be used only during rainy season when moisture content in coal exceed by around 8%.

The summary of the proposed amendments has been given in tabular format in Annexure 1 of enclosed Form 1. With respect to the environmental impact from the overall plant, based on table given in Annexure 5 of enclosed Form 1, the following are the conclusions: 1. Manpower - No change will be there as excess manpower from other sections

of the steel plant shall be utilized in the additional/alternate units stated above. 2. Raw Material - There will be reduction by 1070 TPD (~54 trucks/day of 20T)

during the shut down of DRP-1 due to no consumption of iron ore and dolomite. No other changes in the raw materials of the integrated steel plant will be there as the additional/alternate units stated above are intermediaries and do not effect the overall output or input.

3. Fuel (Coal) - The coal consumption of DRP-1 (725 TPD) will reduce due to shut

down of DRP 1 but operation of combustor will require 250 TPD coal. Thus, decrease in coal shall be there to the tune of 725-250 = 475 TPD (~24 trucks/day of 20T).

4. Fuel (Oil) - The PGP will generate gas to replace the FO consumed in BSM,

which has already been accounted in the EC amendment dated 12.01.2012. The fuel oil consumption will be as follows:

TABLE 1 : FUEL OIL CONSUMPTION

Total fuel

required (TPD) for 24 hours

Remarks

As sanctioned in EC : Blooming Mill RHF-3 (full capacity) (1X70 TPH sanctioned in year 2012)- already installed

20.16 @ 40% FO use (24KLD), 60% BF

Blooming Mill RHF-4 (1X70 TPH sanctioned 2017)- proposed

20.16 @ 40% FO use (24KLD), 60% BF

Subtotal 40.32

In CTE Consent No. BO/APAE/EIC/ No. NG-3610-10/E/CC-179 dt 08.04.2011, 61 TPD FO was sanctioned. For EC in Ann-XXXI, question

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Total fuel

required (TPD) for 24 hours

Remarks

IX-C it was submitted as 200 TPD for entire plant (including blooming mill)

Amendments:

Blooming Mill RHF-3 (5 hr Turn Down during ingot RHF operation)

17.64

Worst case scenario when RHF-3 will operate for 19 hours @100% and 5 hours @40% (with FO & BF) along with ingot RHF-A & RHF-B

Blooming Mill RHF-4 20.16 No effect on RHF-4, continues with FO & BF Ingot RHF-A 3.36 Max 24 hour consumption (4 KL) Ingot RHF-B 3.36 Max 24 hour consumption (4 KL) Sinter Boiler 11.26 Max 24 hour consumption VD Boiler 4.20 Max 24 hour consumption Coal Drier 0.84 Max 24 hour consumption (1 KL) Total 60.82 Is nearly equal to 61 TPD

5. Transportation - The overall traffic from the steel plant will reduce as explained

in points 2 to 4 above. Approximately 78 trucks/day will reduce when combustor and ingot RHF will be operational.

6. Air Emissions - Air emissions are affected by (i) Stack emissions, (ii) Fugitive

emissions & (iii) Emissions due to transportation. The net emission will not increase due to following:

a) Stack emissions - The emissions from stacks are due to fossil fuel

consumption or particulate matter emission from process. Since, the overall coal consumption will decrease by 475 TPD and fuel oil will decrease by 0.18 TPD, the net emissions will be lower than those sanctioned vide EC dated 02.05.2017 and previous amendment dated 12.01.2012.

b) Fugitive emissions - Since there is no increase in incoming raw material but decline in coal, the emission due to their handling will decrease overall. There will be emissions due to material handling which will be mitigated with control measures like sprinklers, foggers, bag filters and plantation. Thus, the overall emissions from the plant will stay within previously sanctioned capacity as per EC dated 02.05.2017.

c) Emissions due to transportation - The overall emission due to transportation will decrease as there is decrease in incoming transportation as explained in point 5. The raw material and fuel will decrease while outgoing products and solid waste will remain same.

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7. Water Consumption - There can be two scenarios for additional water requirement :

a) When combustor is not operating then the additional water requirement for all

above equipments will be 792 KLD

b) When combustor will be operational, the DRP-1 water requirement of 125 KLD will become zero but combustor requirement of 2 KLD will be there in addition to other units. Therefore the total additional water requirement for all above equipments will be 669 KLD ( 792-125+2 KLD).

Even though the water requirement is increasing due to additional units, the total consumption of the entire plant i.e. 8589 KLD will remain unchanged. This is because, several water conservation measures have been implemented in last 2 years, leading to water savings to the tune of 850 KLD. These conservation measures were as follows: i. Drift losses in cooling tower were reduced by replacing with latest technology

cooling tower (fix type/ honeycomb fills type Cooling tower replaced by optical grid type cooling tower).

ii. Paving of roads has reduced the water consumption in road sprinkling iii. Reduction in cooling tower makeup water by doing automation of cooling tower

fans on-off with respect to outlet temperature. This has also lead to energy/Power conservation.

iv. Specific water consumption has been reduced. 8. Effluent Generation - 84.2 KLD additional effluent will be generated which will

be sent to the existing ETP (Capacity : 26,664 KLD), which has excess capacity to be able to accommodate this additional 0.32% effluent. The treated effluent will be used as a makeup in cooling towers, sinter plant & pig cast machine, and slag quenching.

9. Solid Waste (For Disposal) - Due to establishment of the metal slag recovery

plant, the earlier sanctioned solid waste will reduce by 3% and the balance will be managed through supply to paver block manufacturer and filling in low lying areas as per previous proposal. The additional ash generated from combustor (61 TPD) will be offset by DRP-1 shut down wherein 130 TPD Dolo char will reduce which contains nearly 60% ash content (78 TPD ( 130 X 60% /100).

10. Energy Consumption - The additional energy consumption shall be there to

the tune of 15.945 MW which shall be met from Maharashtra State Electricity Distribution Company Limited (MSEDCL (Ex MSEB).

In view of the above, we are desirous of obtaining amendment in environmental clearance dated 02.05.2017 for the amendments in intermediate units under clause 7(ii) of the EIA Notification 2006 and its amendments till date. We reiterate, there is no change in total production of steel.

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Accordingly, please find enclosed Form 1 for amendment along with annexures.

We hope you will find the above in order and process our case for grant ofamendment in environmental clearance.

Thanking YouFor Sunflag Iron & Steel Ltd.

~YC!-e-Prestd ent (Works)

Enclosure: Form 1 & its annexures

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