PRE FEASIBILITY REPORT - environmentclearance.nic.inenvironmentclearance.nic.in/writereaddata/FormB/TOR/PFR/11_Dec... · PRE FEASIBILITY REPORT Page No.1 . HP ISPAT PVT LTD Plot no.

Registered office:

1 R N Mukherjee Road,

2nd

Floor, RN-210

Kolkata-700001

Works:

Plot no. 2125, Mejia Road,

Ghutghoria, Barjora,

Bankura, Pin -722168(W.B.)

PRE FEASIBILITY REPORT

Page No.1

HP ISPAT PVT LTD Plot no. 2125, Mejia Road, Ghutghoria, Barjora, Bankura, Pin -722168(W.B.)

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 19

boundary & project site layout) with coordinates

3.3 Details of alternate sites considered and the basis of selecting the 22

proposed site, particularly the environmental consideration gone into should be highlighted.

3.4 Size and Magnitude of Operation 22

3.5 Project description with process details (a schematic diagram/flow 23 chart showing the project layout, components of the project etc. should be given)

3.6 Raw Material Required Along Estimated Quantity, Likely Source, and 24 Marketing Area of Final Product/s Mode Of Transport Of Raw

Material And Finished Product.

3.7 Resource optimization/recycling and reuse envisaged in the 24 project, if any, should be briefly outlined.

3.8 Availability of water its source, Energy/Power requirement and source 25

should be given.

3.9 Quantity of waste to be generated (liquid and solid) and scheme for 26 their management/disposal.

4 SITE ANALYSIS

4.1 Connectivity 26

4.2 Land form, Land use and Land ownership 28

4.3 Existing land use pattern 29-30

Page No. 2


4.4 Existing Infrastructure 31

4.5 Soil Classification 32

4.6 Climatic data from secondary sources 32

4.7 Social Infrastructure available 32

5 PLANNING BRIEF

5.1 Planning concept 33

5.2 Population Projection 34

5.3 Land use planning 35

5.4 Assessment of Infrastructure Demand (Physical & Social) 36

5.5 Amenities/Facilities 36

6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area) 37

6.2 Resident Area (Non Processing Area) 37

6.3 Green Belt 37

6.4 Social Infrastructure 38

6.5 Connectivity (Traffic and transportation Road/Rail/Metro/Water ways 38 etc)

6.6 Drinking Water Management (Source & supply of water) 39

6.7 Sewerage System 39

6.8 Industrial Waste Management 40

6.9 Solid waste Management 40

6.10 Power Requirement 41

7 REHABILITATION AND RESETTLEMENT(R&R PLAN) 41

8 PROJECT SCHEDULE AND COST ESTIMATES

8.1 (Likely date of start of construction and likely date of completion (time 41

schedule for the project to be given)

8.2 Estimated project cost and along with analysis in terms 42

of economic viability of the project.

9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) 43

Page No. 3

HP ISPAT PVT LTD. Plot no. 2125, Mejia Road, Ghutghoria, Barjora, Bankura, Pin -722168(W.B.)

1. EXECUTIVE SUMMARY

HP ISPAT PVT LTD is one of the distinguished manufacturers who are

engaged in offering a durable range of TMT Bars. The company has a suitable

steel making and continuous casting facilities for the production of billets. Key

activities of this group are manufacturing of MS Rods, steel billets, TMT bars

and trading in minerals like iron ore. Different products manufactured by this

company may comply with the international quality standards. These highly durable

and corrosion resistant products are ideal for construction of Bridges, reinforcement,

Industrial Structures, High-rise Buildings, Dams, Thermal & Hydel Power Plants,

Coastal Construction, Underground/Raised Platforms, and Concrete Reinforcement.

The registered office of this company is situated at 1 R. N. Mukherjee Road, Martin

Burn Building.2nd floor, Room no -210,Kolkata -700001.

The existing manufacturing unit is located at Plot no 2125 Mejia Road, Ghutghoria, Barjora,

Bankura, Pin -722168 (W. B.)

Accordingly, realizing the demand of steel and allied

products, the management has taken decision for installing 2 x 10 Tonnes

Induction furnace with Ladle Refining Furnace.

Page No. 4


2. INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION

2.1. Identification of the project and project proponent.

Consecutively to raise the production and for meeting the demand of billets, as

well as the significance of economy of scale, the management of H P ISPAT RIVATE

LIMITED.

has made a decision to increase steel melting capacity by setting up Induction

Furnace unit.

Now the company is operating a steel plant containing of 2 nos. Induction

furnaces of 7 and 8 MT each, 1 No. 1 strand continuous caster for production of Billets

and also a 7000 Tonnes/ Month Rolling mill for manufacturing TMT Bars and

rounds.

On the other hand, realizing the higher profitability the management comes to a

decision to go for the following addition:

Particulars Existing Subsequent

Modification/Addition

Induction Furnace 2 no( 7+8) MT 4 no (7+8+10x2) MT

M.S. Billets 36000MT/Annum 120000 Tonnes/ Annum

Continuous Caster 1 Nos. 1 strand

Rolling mill 72000 MT/ Annum 136800 Tonnes/ Annum

Page No. 5


ESTIMATION OF PROPOSED PLANT CAPACITY

No of Induction Furnace 4

Capacity (MT) MT 35

Total Production (MT) /heat MT/heat 35

No of Heats Per day 11

Number of days available Per annum 310

Total Liquid Metal Production MT 120000

Actual Yield of Billets @ 99.5% MT 1,19,100

BACKGROUND OF THE PROMOTERS

The background of the promoters is given as follows:

Particulars Description

Name Shri Mahesh Kr. Kandoi

Father’s Name Late Shri Atma Ram Kandoi

Educational B. Com(H)

Qualification

Age 54 Years

Address 48/G Rabindra Sarani, Liluah, Howrah - 711204

Existing Activity He has more than two decades of experience in the iron

and steel sector. Mr. Pandey has been a guiding force

behind the Group and has played a key role in

envisioning the various business initiatives of the group.

He possesses expertise in financial matters and has

been an important contributor in all the financial

matters of the group.

Page No. 6


Particulars Description

Name Shri Subhas Das

Father’s Name Late Shri Amal Kumar Das

Educational B. Com(H)

Qualification

Age 48 Years

Address 1/18 Dr. B R Ambedkar Sarani,

Existing Activity He has over 15 years of experience in the iron and steel

sector. He is looking after marketing and purchasing

activities of the group.

2.2. Brief Description of Nature of Project.

In a modernization drive, the management has decided to install 2 no. of 10 MT

Induction Furnace adjacent to the existing plant area.

Existing: 2 No. (7+8)MT Induction Furnace, 1 Nos. 1 strand Continuous Casting

Machine, 1 Nos. 6000 Tonnes/ Month Rolling mill.

Expansion: Addition of 2 No. 10 MT Induction Furnace, 1 x 10 MT Ladle Refining

Furnace.

Page No. 7


2.3. Need for the Project & Importance to the Country

Steel is considered as the backbone of national economic development. Steel

industry is the second biggest industry in the world after oil and gas with an

estimated global turnover of USD 900 billion.

Steel is used in different industries like energy, construction, automotive and

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

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

power. Beside these, construction and housing sector is the biggest consumer of

steel today, using around 50% of steel produced. Steel industry is in the front line

in the liberalization of the industrial sector and has made fast steps since long. Per

capita consumption of steel is one of the significant index for measurement of

development of socioeconomic status and living standards of the people in any

country.

Steel demand has outpaced supply over the last five years:

In FY15, the consumption of finished steel grew to 76.99 MT although the CAGR

increased to 5.74 per cent during FY08-15.

Steel consumption is expected to reach 104 MT by 2017 due to rising

infrastructure development and growing demand for automotives.

It is expected that per capita consumption would rise supported by fast growth in

the industrial sector, and rising infra expenditure projects in railways, roads &

highways, etc.

Page No. 8


� For FY15, per capita consumption of steel in India was 60 kg against the world average of 222 kg.

Figure: 1: Steel Consumption

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

� 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

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

integrated producers.

Page No. 9


� 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.

� 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.

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

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

chain.

� 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.

Page No. 10


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

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:

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.

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).

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.

Page No. 11


� 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.

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 + 68.62 75.70 81.68 87.67 91.46

non alloy)

Source: Joint Plant Committee

Page No. 12


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

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.

Page No. 13


� Demand

Figure - 1 represents the domestic demand for finished steel. The domestic

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: 2: Domestic Demand of Steel

Source: MOS and MM Analysis

Page No. 14


� Supply

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

that:

� 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 111.76 143.16 184.80

producers

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.

Page No. 15


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.

Indian Steel Industry: Imports (in million Tons)

Category 2009-10 2010-11 2011-12 2012-13 2013-14

Total finished 7.38 6.66 6.86 7.93 5.45

Steel

Source: www.steel.gov.in/ Joint Plant Committee (JPC)

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 a

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

neighboring regions of Asia, Africa and the Middle East.

Page No. 16


Indian Steel Industry: Emports (in million Tons)

Category 2009-10 2010-11 2011-12 2012-13 2013-14

Total finished 3.25 3.64 4.59 5.37 5.98

Steel

Source: www.steel.gov.in/ Joint Plant Committee (JPC)

2.7. Domestic/Export Markets Import Export Trend

The domestic import export trend of steel during FY08-12 is indicated in Figure 3.

Figure 3 : 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.

Page No. 17


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

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. Item No Per Total

No. Shift

Induction

1. Furnace operator (Highly Skilled) 3 6

2. Assistant furnace operator (SK) 3 9

3. Gas Cutter/ Welder (SK) 10 10

4. Helper (SSK) 7 21

5. Mechanical Fitter (SK) 5 15

6. Electrician (SK) 3 9

7. Helper (SSK) 7 21

8. Pump/ Comp Attendant Attendant (SSK) 3 9

Page No. 18


Rolling Mill

11. Operator 4 12

12. Skilled Manpower 8 24

13. Unskilled 12 36

14. Electrician 4 12

15. Laboratory 2 6

16. Maintenance 4 12

3. PROJECT DESCRIPTION

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

any

TMT bars available in HP ISPAT PRIVATE LTD are varied in sizes like 8mm, 10mm,

12mm, 16mm, 20mm, and 22-32mm. They even make custom made products

according to customer requirements.

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

boundary & project site layout) with coordinates.

The factory is located at Plot no. 2125,Mejia Road, Ghutgoria, Borjira Bankura, Pin

No.722168(W.B.).The distance of site from Durgapur railway station is about 13.5 km.

Page No. 19


Total land area is around

Page No. 20


Page No. 21


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

Raw material required for production of TMT Bar/ Rounds is Ingot/ Billet which are

manufactured through Induction Furnace. Sponge iron, Steel scrap, Pig iron and

other Ferro Alloys are required for manufacturing Ingot/ Billet.

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

1. Two Sets 7+8MT Induction Furnace - Consent to operate obtained from (WBPCB)

2. Two Sets of 10 MT Induction Furnaces (Proposed Addition)

3. 1 Nos. 2 strand Continuous Caster (Proposed Addition)

4. Rolling mill - 7000 Tonnes/ Month - Consent to operate obtained from (WBPCB)

5. Coal Gasifire- 20TPH - Consent to operate obtained from (WBPCB)

Page No. 22

HP ISPAT PVT LTD.

Plot no. 2125, Mejia Road, Ghutghoria, Barjora, Bankura, Pin -722168(W.B.)

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

Page No. 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.

Raw Material Requirement at 100 % Capacity

Induction

Sponge Iron MT 105000

Pig Iron MT 30000

Scrap MT 15000

Ferro Manganese MT 1560

Ferro Silicon MT 120

Induction (per MT of liquid metal)

Sponge Iron MT 0.875

Pig Iron MT 0.250

Scrap MT 0.125

Ferro Manganese MT 0.013

Ferro Silicon MT 0.001

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

any, should be briefly outlined.

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

each consists of Two number of 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

Page No. 24


facilitate 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: 6.85 MVA power is already available in the factory with the help of DVC.

Power (approx. 5MVA for new project) can be enhance with the help of them (DVC)

because they have surplus power in that region.

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

other purposes. The required water will be sourced from Durgapur Municipal

Corporation. The total water requirement is given below:

Particulars Requirement (KLD)

Cooling Water (Make up) 180

Domestic purposes & Others 40

Total 220

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

Page No. 25


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

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. In the proposed unit there will be

one number of crusher cum magnetic separator. The slag will be crushed into

coarse and segregated into metallic and non-metallic contents. Metallic parts will

be recycled back as raw material for captive utilization where as non-metallic parts

will be disposed off for land filling or road construction. From Induction furnace

ore slag will be generated. The quantity of slag will be 1000 Tonnes/month

(approx) which will be disposed for land filling and road construction. Generation of

dust from Air pollution control system will be approx. 25 Tonnes /month which will be

utilized in making the fly ash bricks. Scrap (Approx. 30 Tonnes /month) from

Induction furnace will be reused. Mill scale from rolling 25 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

Page No. 26


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 - 150 KM Asansol - 40 KM Burdwan - 66 KM

Raniganj - 20 KM Dhandbad - 94 KM Suri - 52 KM

Page No. 27


4.2. Land form, Land use and Land ownership.

The existing freehold land area is approximately 6 acres and is occupied

with the existing facilities. The site is falling at plot no.2125, Mejia road, Ghutgoria,

Barjora, Bankura, Pin No. 722168(W.B.)

4.3. 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.

Page No. 28

Page No. 29


� Existing General land use

Agriculture land is a main category of land use analysis which occupies about 47% of the

total area, Situated in Barjora industrial park(WBIDC), 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 this study area is dry deciduous in nature. About 18.5% of the

study area is 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 enough scope for

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

eforestoration. About 3.2% of the study area is under scrub land.

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

tank / pond etc. River sand occupies 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)

Page No. 30


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

Notified industrial area: - None (within 10 Km)

4.4. Existing Infrastructure

HP ISPAT PVT LTDis manufacturing MS Billets, TMT Bars and Rounds at the existing

land.

The present status of statutory clearances is given as follows:

Particulars Land Conversion

Sanction plan for new

project

NOC from Pollution

Control board

Induction Furnace

Rolling Mill

Continuous Caster

Reheating Furnace

Current Status

Existing

In Progress

(1 x 7) + (1 x 8) MT - Consent to Operate obtained

From(WBPCB)

7000 Tonnes/ Month - Consent to Operate obtained

from (WBPCB)

1 Nos. 1 strand Continuous Caster - Consent to Operate

obtained from (WBPCB)

20 TPH Consent to Operate obtained from (WBPCB)

Page No. 31


4.5. Soil Classification

Durgapur area of Bankura district in 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 extends eastwards beyond Durgapur to the rest of the district.

Alluvial cover thickness of the Durgapur area is raised towards the eastward

direction.

4.6. Climatic data from secondary sources

Usually a mixed climate is seen in Durgapur area throughout the year. Average

temperature during summer season is 32°C whereas at the cold season,

temperature is generally 20°C. Maximum temperature during summer may rise 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. March to May is dry summer intervened by tropical cyclonic

storms. June to September is wet summer while October is autumn. Winter season

starts from about the middle of November and continues till the end of February.

4.7. Social Infrastructure available

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

plant site situated in plot no.2125, Mejia Road, Ghutghoria, Barjora ,Bankura Durgapur

Municipal Corporation. Surrounding proposed project site, the study area

is Industrial area. Durgapur city is governed

Page No. 32


by Municipal Corporation which comes under Durgapur Metropolitan Region.As

per provisional reports of Census India 2011, population of Durgapur is 566,517;

whereas male and female are 294,255 and 272,262 respectively. Although

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 3,596,292 1,840,504 1,755,788

Population

Literates 2,264,013 1,321,794 942,219

Children (0-6) 405,401 208,632 196,769

Average 70.95 81.00 60.44

Literacy (%)

Sex ratio 954

Child Sex ratio 943

As per Durgapur religion data, 2011, 91.63% of people are Hindu, 6.34% are

Muslims, 0.33% are Christians. 5. PLANNING BRIEF

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

country planning/Development authority Classification.

Page No. 33


The site is falling at Plot no. 2125, Mejia Road, Ghutghoria, Barjora, Bankura, Pin -722168 (W.B.). Necessary development will be made with the help of local panchayat.

5.2. Population Projection

As per Census of India 2011, among total population, 39.89 percent lives in urban

regions of Bankura district. In total 3,596,292 people lives in urban areas,

among which males are 1,840,504 and females are 1,755,788. In Bankura

District, a decline in Child Sex Ratio (CSR) from 956 in 2001 Census to 951 in 2011

Census has been noticed. Child population (0-6) in urban region was 405,401of

which males and females were 208,632and 196,769. This child population figure

of Bankura district is 10.38 % of total urban population. Literacy Rate of the

Bankura district is 70.95% thereby making its rank 9th in the State. Male and

female literacy Rates are 81.00 % and 60.44% respectively. In actual number

2,264,013 people are literate in urban region of which males and females are

1,321,794 and 942,219 respectively. As per Bankura religion data, 2011,

77.85% of people are Hindu, 20.73% are Muslims, 0.27% are Christians. The

Work Participation Rate (WPR) of that district has improved from 35.5 (in 2001

Census) to 37.7 (in 2011 Census). Bankura District is following a decreasing

trend in percentage of Main Workers to Total Workers from 77.6 in 2001 Census to

74.4 in 2011 Census. Cultivators and Agricultural Labours are 11.8% and 33.4% of the

Total Workers respectively.

Page No. 34


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

HP ISPAT PVT LTD occupies about 6 acre of land at plot no.2125, Mejia road,

Ghutgoria , Barjora, Bankura, west Bengal.

Page No. 35


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, 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

directly/ indirectly.

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.

Page No. 36


6. PROPOSED INFRASTRUCTURE

6.1. Industrial Area (Processing Area)

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

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 1500 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 30% of the total area.

LIT OF BIG TREES FOR PROPOSED PLANTATION IS GIVEN BELOW

No. Common name Scientific name Family 01 Debdaru Polyalthia longifolia anonaceae

02. Radhachura Delonix regia Caesalpinaceae

03. Arjun, Arjuna Terminalia arjuna Combretaceae

04. Chatim Alstonia scholaris Apocynaceae

05. Jhaun Casuarina equisetifolia Casuarinaceae

06. Bot Ficus benghalensis Moraceae

07. Nim Azadirachta indica Meliaceae

Page No. 37


08. Ghoranim Meliaceae

Melia azedarch

09. Akashmoni Mimosaceae

Acacia moniliformis

10. Aam Anacardiaceae

Mangifera indica

11. Sirish Albizia Lebbeck Mimosaceae

12. Jarul Lagerstroemia speciosa Lythraceae

13. Karanj Derris indica Fabaceae

14. Ashwatha Ficus religiosa Moraceae

15. Tantul, Tentuli Tamarindus indica Caesal pinaceae

16. Krishnachura Caesalpinia pulcherrima Caesalpinaceae

17. Sisso Dalbergia sissoo Papilionaceae

18. Pakur Ficus infectoria Moraceae

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

Page No. 38


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

steel consumption center is given below.

Kolkata - 150 KM Asansol - 40 KM Burdwan - 66 KM

Raniganj - 20 KM Dhandbad - 94 KM Suri - 52 KM

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

Water: Water requirement for the proposed project will be for cooling (make-up)

and domestic & other purposes. The required water will be sourced from Durgapur

Municipal Corporation. The total water requirement is given below:

Particulars KL/Day

Proposed

Water for cooling (Make up) 180

Domestic purposes & other uses 40

Total 220

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

Page No. 39


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.

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 Estimated

Waste Generation

(MT/Month)

Slag from SMS (new 1000

project)

Scrap 30

Process of Disposal

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.

Re-melted in the process.

Page No. 40


Type of Solid Estimated Process of Disposal

Waste Generation

(MT/Month)

Mill scale from 25 Will be recycled in Induction furnace.

rolling

6.10. Power Requirement

6.85 MVA power is already available in the factory with the help of DVC. Power

(approx. 5 MVA for new project) can be enhance with the help of them (DVC)

because they have surplus power in that region.

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.

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 September 2017 December 2017

Page No. 41


Machineries

Structural fabrication and erection of November 2017 December 2017

technological structures

Placement of Orders of Plant and Machinery July 2017 October 2017

Erection of Equipments November 2017 December 2017

Trial Run and Commissioning January 2018

Commercial Operation Date January 2018

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. Item Cost

No. (Rs Lacs)

1. Land & Land Development NIL

2. Factory Building & Other Civil Cost 50.00

3. Plant & Machinery 350.00

4. Miscellaneous Fixed Assets NIL

5. Security Deposit- Power Connection 100.00

6. Contingency Provision for Cost 20.00

Escalation

7. Interest During Construction NIL

8. Margin for Working Capital NIL

Total 520.00

Page No. 42


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 NIL

Term Loan NIL

Company’s Own Sources 520.00

Total 520.00

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. 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.

Page No. 43


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.

Page No. 44

PRE FEASIBILITY REPORT - environmentclearance.nic.inenvironmentclearance.nic.in/writereaddata/FormB/TOR/PFR/11_Dec... · PRE FEASIBILITY REPORT Page No.1 . HP ISPAT PVT LTD Plot no.

Documents