PPRREE FFEEAASSIIBBIILLIITTYY RREEPPOORRTT
FOR
THE PROPOSED 5.26 MTPA INTEGRATED STEEL PLANT AND
450 MW CAPTIVE POWER PLANT NEAR
BELLARY, KARNATAKA, INDIA
Submitted to
Ministry of Environment and Forest & Climate Change
New Delhi
Submitted by:
M/s Vedanta Limited
(Formerly Sesa Goa Limited) Goa
Environment Consultant:
Vimta Labs Ltd. 142, IDA, Phase-II, Cherlapally, Hyderabad–500 051
[email protected], www.vimta.com
(QCI/NABL Accredited and ISO 17025 Certified Laboratory,Recognized by MoEF, New Delhi)
June, 2017
Pre-Feasibility Report for Proposed the Proposed 5.26 MTPA Integrated Steel Plant and 450
MW Captive Power Plant Near Bellary, Karnataka
Pre-Feasibility Report
VIMTA Labs Limited, Hyderabad 2
TABLE OF CONTENTS
Sr. No. Particulars Page No
1.0 Executive Summary 3
2.0 Introduction of Project 4
3.0 Project Description 11
4.0 Site Analysis 24
5.0 Planning 24
6.0 Rehabilitation and Resettlement (R&R) Plan 26
7.0 Project Schedule and Cost Estimates 26
8.0 Analysis of Proposal 27
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1.0 Executive Summary
Vedanta Ltd has acquired assets of Bellary Steels and Alloys Ltd. (BSAL) through
IFCI run process in Bellary, Karnataka and plans to install an integrated steel
plant of capacity 5.26 MTPA with captive power plant of 450 MW at K.B Hali,
Chaganuru, Siriwara, Bevinahalli villages, Bellary Taluk, Bellary District,
Karnataka.
Vedanta Ltd proposes to install the following facilities as part of the proposed
integrated steel Plant:
Sr. No. Plant Facilities Capacity
1 Blast Furance 2x 3,700 m3
2 Hot metal production 5.26 MTPA
3 Sinter plant 1X450 m2
4 Gross Sinter production 4.6 MTPA
5
Coke oven
Recovery stamp charging with
4x53 ovens. Coke production of
2.23 MTPA
6 BOF Converters 3x180 ton
7 Ladle furnaces 3x180 ton
8 Liquid steel production 4.94 MTPA
9 Billet casters 2x6 strand
10 Billet production 2.4 MTPA
11 Slab caster 2x1 strand (TSCR)
12 Wire rod mill / bar mill
production 2.3 MTPA
13 HRC production 2.4 MTPA (TSCR)
14 CRM (Cold rolling mill) 1.0 MTPA
15 Galvanizing unit 0.6 MTPA
16 Electrical steel (CRGO) 0.4 MTPA
17 Colour coating unit 0.4 MTPA
18 Calcining plant 2x600 TPD
19 Lime kiln 2x250 TPD
20 Coal based captive power plant 3x150 MW
Vedanta Ltd proposes to set up Integrated Steel Plant (ISP) of capacity 5.26
MTPA in two phases within 42 months after obtaining necessary statutory
clearance.
The site is situated within the geographical coordinates.
Sr. No Latitude Longitude
1 15010’27.4”N 76059’17.3E
2 15010’29.0”N 76059’34.4E
3 15010’30.5”N 76059’57.7E
4 15010’34.1”N 77000’13.3E
5 15010’29.5”N 77001’22.9E
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Sr. No Latitude Longitude
6 15010’28.8”N 77001’34.3E
7 15010’17.2”N 77001’36.0E
8 15009’43.8”N 77001’29.3E
9 15009’13.9”N 77001’28.2E
10 15009’11.3”N 77001’19.9E
11 15008’33.3”N 77001’22.2E
12 15008’33.7”N 77001’05.5E
13 15008’50.5”N 77001’06.0E
14 15009’13.7”N 77001’05.6E
15 15009’11.4”N 76059’19.5E
16 15009’40.4”N 76059’15.0E
The topography of the plant site is flat with minor undulation. The levels at the
site range from 422 - 428 m above MSL.
Total land required for the proposed integrated steel plant is about 980.64 ha
(2423.17 acres). Out of which, (284 ha) 702 acres of land is in possession of
Vedanta Ltd.
The estimated water requirement for the proposed project is about 3900 m3/hr
will be drawn from the following sources:
Tungabhadra dam located at 80 km from the plant;
Almatti dam on Krishna river located at 200 km from the plant;
Hagari river at 3 km from the plant;
Bore wells.
The estimated power requirement of the plant will be about 450 MW. In order to
meet the requirement of power for the proposed plant, a captive power plant of
capacity 3x150 MW has been envisaged.
2.0 Introduction of Project
(i) Identification of Project Proponent
Vedanta Ltd., a Vedanta Group company is one of the world's largest
global diversified natural resource majors, with operations across zinc-lead-silver,
oil & gas, iron ore, copper, aluminium and commercial power and has a presence
across India, South Africa, Namibia, Ireland, Australia, Liberia and Sri Lanka..
The name of the company has been changed to M/s Vedanta Limited w.e.f.
31.03.2015 post issue of Fresh Certificate of Incorporation issued by the
Registrar of Companies, Goa, Ministry of Corporate Affairs (MCA), Govt. of India.
Vedanta Ltd, formerly Vedanta Limited, is the Indian subsidiary of Vedanta
Resources Plc, a London listed company. Sustainable Development is at the core
of Vedanta's strategy, with a strong focus on health, safety and environment and
on enhancing the lives of local communities. Vedanta Ltd is listed on the Bombay
Pre-Feasibility Report for Proposed the Proposed 5.26 MTPA Integrated Steel Plant and 450
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Stock Exchange (BSE) and the National Stock Exchange (NSE) in India and has
ADRs listed on the New York Stock Exchange (NYSE).
Vedanta Limited (Formerly Sesa Goa Limited, the flagship company of Sesa
Group) is India's largest exporter of iron ore in the private sector. For the past
five decades, the Group has been involved in iron ore mining, beneficiation and
exports, with a group turnover of around Rs. 4900 crores. Over the last decade,
it has diversified into manufacture of foundry and SG grades of pig iron and
metallurgical coke. The Group operated a 320,000 TPY metallurgical coke plant
and a 292,000 TPY pig iron plant.
(ii) Need for the Project and its Importance to the Country
The scenario analysis is presented in terms of ‘Finished Steel’ or simply ‘Steel’
and includes Mild or Carbon Steel, Tool, Alloy & Stainless steels. The current
share of Tool, Alloy & Stainless Steel is of the order 8% of the overall domestic
consumption of steel.
While the demand has been forecast, as per the universal practice, in terms of
finished steel as obtained after rolling in the finishing mills of a steel plant, the
capacity is estimated in terms of crude steel as obtained in the form of semis
from continuous casting/ingot casting shops. However, for determining the gap in
the demand-supply scenario, the availability or supply has been derived from the
projected capacity figures by giving due allowance for the possible
underutilisation of capacity and processing loss. This industry is assumed to
operate at 90% of its rated capacity. The yields of finished steel from the crude
steel capacity have been considered to be 96% for long products and 95% for
the flat products.
Before embarking on an independent exercise of forecasting demand and
availability, it may be worthwhile to have a look at the long term predictions
made by some of the leading organisations of the world, including the draft paper
circulated by the Ministry of Steel (MOS), Government of India (GOI). A
comparative analysis of these forecasts is tabulated below:
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It may be seen from the above that the possible steel scenarios visualised by the
different agencies, predicted at different points of time, varied quite significantly
from one another. No clear picture of likely investment opportunities emerges
from a set of such highly diverse levels of forecasts. While WSD projections have
already been outsmarted by the developments of Indian economy thus far, the
scenario painted by WSA 2020 is too likely to remain elusive. The GDP growth
rates assumed by the MOS paper are also open to scrutiny. In a volatile market
economy, factors responsible for generating and sustaining demand undergo
changes quite rapidly, raising doubts on the validity of forecasts made at
different points of time in the past. Forecasting exercises, under such
circumstances, need to be refined and updated with the changing market
scenario.
(iii) Demand – Supply Gap
The forecast of likely demand and the estimates of availability, the task that
remains is to estimate the likely shortage/excess in the availability of steel for
the designated time frames as per the scope of work of the current study. This
exercise has been carried out in three parts - Finished Steel, Long and Flat
groups of products. The future scenarios are presented in the following tables
and graphs.
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MW Captive Power Plant Near Bellary, Karnataka
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(iv) Demand of Steel in varions Sectors
The long term demand forecast of steel by studying the impact of the
Government’s policy measures as reflected in the Budget 2014 on the drivers of
steel demand in the country – the Infrastructure and the Manufacturing sectors.
Infrastructure
With initiatives aimed at developing smart cities, airports, highways and ports,
and major announcements in the energy sector, Budget 2014 has put the
spotlight on reviving infrastructure growth in the country.
Real Estate: The budget lays the road map for providing long-term funds on a
sustained basis to the cash-starved infrastructure sector. It envisages the
creation of Infrastructure Investment Trusts (InvITs) and Real Estate Investment
Trusts (REITs) for this purpose. The finance ministry has proposed a range of tax
incentives for these trusts in line with its promise to create a framework of fast-
track, investment friendly and predictable public-private-partnerships (PPPs) to
build large-scale projects that are of vital importance for India to compete in
global markets. An institution to provide support to mainstreaming PPPs called 3P
India is to be set up with a corpus of INR 500 crore.
The budget has announced a slew of measures to revive the real estate sector,
including allocation of INR 7,060 crore for development of 100 smart cities,
relaxation of norms for the entry of foreign capital and tax relief on home loans,
a reduction in the size of real estate projects eligible for foreign direct investment
(FDI) to 20,000 sq metres from 50,000 sq metres and halving of the threshold
limit for FDI to $5 million, along with the fact that the builders that allocate at
least a third of their projects for low priced homes would be exempted from these
caps.
The budget has increased the deduction limit for interest on loan for self-
occupied properties from INR 1.5 lakh to 2.0 lakh. With these measures,
industry-experts feel that the new norms would specially aid the government's
ambitious plans to provide housing for all by 2022 and build 100 smart cities.
Highways: The budget also proposes investment in National Highways Authority
of India and State Roads of an amount of INR 37,880 crore, which includes INR
3,000 crore for the North East.
Scheme for development of new airports in Tier I and Tier II cities will be
launched for implementation through Airport Authority of India or PPPs.
Shipping: Sixteen new port projects have been proposed to be awarded this
year with a focus on port connectivity. INR 11,635 crore will be allocated for the
development of Outer Harbour Project in Tuticorin for phase I. SEZs will also be
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developed in Kandla and JNPT. A comprehensive policy will also be announced to
promote Indian ship building industry in the current financial year.
Power: Companies can take 10-year tax holiday if they start generating,
distributing or transmitting power by March 2017. A green energy corridor has
also been planned. It is proposed to take up Ultra Mega Solar Power Projects in
Rajasthan, Gujarat, Tamil Nadu, and Laddakh in J&K.
Mining: In order to encourage investment in mining sector and promote
sustainable mining practices to adequately meet the requirements of industry
without sacrificing environmental concerns, the budget proposes to introduce
necessary changes in the MMDR Act, 1957 to facilitate resolving of the current
impasse in mining sector, including iron ore mining, expeditiously.
Oil Sector: Reforms have been proposed in the budget. For pipelines, PPP model
will be used to build a national gas grid.
Urban Transportation: Encouragement is being given to develop metro rail
systems, including light rail systems, in the PPP mode, which will be supported by
the Central Government through Viability Gap Funding.
Manufacturing : The manufacturing sector will also be getting a boost, allowing
approval for FDI automatically. The units will now be allowed to sell its products
through retail including E-commerce platforms without any additional approval.
All these measures point towards an accelerated rate of development of the
economy leading to a regime of sustained growth in the market demand of steel.
The time phase wise demand forecast made in this study appear to be reliable
and justified.
The growing magnitudes of deficit in supply as compared to demand call for
massive dose of investments for creating additional capacities of production so
that the country remains self-reliant. The increasing gap between the demand
and availability offers huge opportunity for the domestic players, old and new
alike, to invest and create additional steel making facilities and thereby
contribute their mite in consolidating the nation’s industrial base.
The projected scenario of significant supply deficiencies is applicable almost in
equal measure to both the long and flat groups of products. The high
acceptability of Indian steel in international market lends a cushion to the
domestic producers in the event of any aberration being noticed in the level of
domestic demand projected for the future.
(v) Imports Vs Indigenous Production
With Make in India concept and accelerated growth potential of Indian economy,
utilising existing natural resources to produce Iron & Steel.
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(vi) Export Possibility
There is a big potential for export of Steel especially to the Eastern Europe. South
America, Africa, South East Asia and other ASEAN & SARC countries apart from
traditional exporting countries of Middle East & Western Europe.
(vii) Domestic / Export Markets
Based on past records, the demand for Iron & Steel used in a large way for the
Infrastructure & Real estate, Highways, shipping, power, mining, oil sector and
urban transportation projects.
(viii) Employment Generation (Direct & Indirect) Due to Project
The proposed project will generate direct employment of approx. 10,000
manpower. However, the proposed Integrated steel plant will additionally
generate more than 20,000 to 30,000 indirect secondary and tertiary
employments.
3.0 Project Description
Type of Project
Vedanta Ltd. proposes to install an integrated steel plant of capacity 5.26 MTPA
with captive power plant of 450 MW.
Location
The proposed project will be located at Amarapura, Teggina Budihal, K.B Hali,
Chaganuru, Siriwara, Bevinahalli villages in Bellary Taluk, Bellary District,
Karnataka.
Road Linkages
National highway NH 63 is passing at about 1.2 km south of plant boundary.
Presently, there is an access to the plant from this highway through a temporary
vent below railway tracks. In order to have the regular access from NH-63, road
over bridge has been considered over the railway tracks. State highway SH-132
is about 2.7 km from north-west corner of the site. But presently there is no
regular access from this state highway except a fair weather very narrow earthen
access along side of the irrigation canal.
Rail Linkage
Guntakal - Hospet non-electrified double line route under South-Central Railways
(SCR) is passing along the 50m (avg.) south of the proposed plant site.
Haddinagundu is the nearest railway station located about 1 km west of the site.
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Near site the track is on embankment and about 4m higher than the plant level.
Bellary (under south-western railways) and Hagari are the next station towards
Hospet and Guntakal side respectively.
Haddinagundu is a crossing station with two main lines and two loop lines. About
30 trains (25 goods + 5 passenger) passes everyday on each direction. There is
a dead ended spur taken off from the down loop line leading towards east (plant
side), which may be considered as the most potential railway link for this plant.
Port :
The imported raw material required and finished products to be exported from
the Mangalore port at a distance of about 450 km, Marmagoa port at a distance
of about 400 km and Krishnapatnam port is at distance of about 400 km from the
proposed plant site.
The index map and study area map are presented in Figure-1 and Figure-2
respectively.
Coverage of the Study Area
The study area of this project comprises the area of 10 km radius from the plant
boundary.
Topography
Topographically the district consists of two widely different natural divisions, one
to the east of Sandur hills and the other to west. The Sandur hills lie right across
the district from north west to southeast, forming eastern and western divisions.
The eastern division is smaller than the western division and is included with
Sirguppa and Bellary taluks of the district. It is a flat treeless landscape covered
with black cotton soils. It is rarely diversified by the rocky hills which rise from it.
They look like islands out of the sea. The western division though containing
scattered patches of black soil is for the most part covered with mixed and red
ferruginous soils except in Hadagli taluka and it is broken up by a constant
succession of wild and rugged hills and lie at a higher elevation than the eastern
part. Both of them slope gradually north-wards towards the river Tungabhadra.
Land & Terrain
The site for the proposed Integrated steel plant is partially flat and sloping from
west to east. The land is mostly single crop rain fed agricultural land.
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FIGURE-1
INDEX MAP
Proposed Project Site
STATE MAP
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FIGURE-2
STUDY AREA MAP
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Climate
The Bellary district falls under semi-arid zone with dry climate. The climate in the
study area is typically warm and humid. From June to September heavy rainfall
is received every year from the southwest monsoon which ranges between 600
mm to 700 mm. The year round temperature ranges from 22 to 37oC.
Water Bodies
Water Bodies in the radius of 15 km radius from the plant
A. Hagari/ Vedavathi river : 1.7 km, E
B. Banja halla : 4.8 km, S
C. Devmma halla : 5.0 km, WNW
Forest Blocks
A. Moka RF : 8.6 km, NNE
B. Mincheri RF: 13.3 km, SSW
C. Bellary RF: 14.3 km, SW
There are no sensitive areas such as national parks, wild life sanctuaries etc.
within the 10 km radius from the proposed project site.
Production Process
Manufacturing Process
The plant will be equipped with coke oven complex, sinter plant, pellet plant,
blast furnace, steel making & casting facility, rolling mills and captive power
plant.
Supporting facilities up to production of finished products will also be set up in
the plant based on the state-of-the-art technology. Plant configuration is given
below:
Sr. No. Plant Facilities Capacity
1 Blast Furnace 2x 3,700 m3
2 Hot metal production 5.26 MTPA
3 Sinter plant 1X450 m2
4 Gross Sinter production 4.6 MTPA
5 Coke oven
Recovery stamp charging with 4x53 ovens.
Coke production of 2.23 MTPA
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Sr. No. Plant Facilities Capacity
6 BOF Converters 3x180 ton
7 Ladle furnaces 3x180 ton
8 Liquid steel production 4.94 MTPA
9 Billet casters 2x6 strand
10 Billet production 2.4 MTPA
11 Slab caster 2x1 strand (TSCR)
12 Wire rod mill / bar mill production
2.3 MTPA
13 HRC production 2.4 MTPA (TSCR)
14 CRM (Cold rolling mill) 1.0 MTPA
15 Galvanizing unit 0.6 MTPA
16 Electrical steel (CRGO) 0.4 MTPA
17 Colour coating unit 0.4 MTPA
18 Calcining plant 2x600 TPD
19 Lime kiln 2x250 TPD
20 Coal based captive power plant
3x150 MW
Production Process
The blast furnace (BF) route with basic oxygen furnace (BOF) steelmaking and
continuous casting into semis, is considered the obvious choice keeping in view
the general practice of integrated steel plants world over. Moreover, availability
of raw materials, familiarity with process technology, economies of scale, space
requirement have also been considered as the deciding factors in choosing
process technology.
Iron Making
As mentioned above, the BF route of iron making has been considered for the
proposed project. The rationale for selection of the various components of the
iron making process is given below.
Sintering: It is practiced worldwide by all BF operators to charge agglomerates
comprising sinter and pellets in various ratios in order to increase the
productivity. A major advantage of the sintering process will be that it will be
able to utilise all in-plant iron containing returns like flue dust, steel melt shop
sludge, mill scale etc. These materials will be suitably blended in base mix yard
along with coke breeze, ore fines, limestone, calcined lime fines and dolomite
fines and charged to the sinter plant.
Coke ovens and by-product plant: Coke oven batteries, in most integrated steel
plants, are either top-charged or stamp charged and recovery or non-recovery
type. As far as coke quenching is concerned it is either wet quenched or dry
quenched. Stamp charging has been preferred over top charging because of the
following reason:
At present there is substantial price gap between hard coking coal and weakly
coking coal. According to experts, this gap is expected to further widen in future.
Stamp charged ovens can accept much higher percentage of weakly coking coal
in the blend, compared to top charging, without compromising in coke quality. In
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view of this, production cost of coke is lower in case of stamp charging, which
offsets the additional capital expenditure of stamp charging.
Recovery type of coke ovens have been preferred over non-recovery type of
coke-ovens keeping in view the recovery of the high calorific value coke oven
gas, which can be used as fuel for many steel plant applications. Or else huge
quantity of propane or any other gas of high calorific value would have to be
purchased to meet the plant fuel requirement. The supply of such gases is very
uncertain and the cost is also very high. As far as quenching of coke is
concerned, dry quenching has been preferred over wet quenching in recovery
coke-ovens, since it results in better coke quality and is a more environmental
friendly operation. The steam generated from coke dry quenching (CDQ) method
can be further utilised for power generation in back pressure turbine and residual
steam of lower pressure can be used as process steam for coke oven itself. This
is beneficial from the point of view of steel plant’s power and steam balance.
This, to a great extent, offsets the additional expenditure for installing the CDQ
facilities.
Thus, keeping all the above factors in view, it has been envisaged to consider
recovery type, stamp charged coke ovens with CDQ for this project. Suitable by-
product plant has also been envisaged.
Blast furnace: It has been envisaged to adopt blast furnaces for the production of
hot metal by using lump ores, pellets and sinter as prepared burden. Prepared
burden will be around 80 to 90 per cent in the burden. Pulverised coal will be
injected to reduce coke consumption.
Slag granulation, drying and despatch: Granulated slag from the blast furnaces
will be de-watered and conveyed to the storage bin for despatch to the cement
plants.
Steel Making
Hot metal pre treatment: In hot metal pre treatment, desulphurization is widely
accepted technology for reducing sulphur level and has been envisaged for this
Project. In order to meet the requirement of low S in steel, desulphurization of
hot metal have been envisaged prior to feeding of hot metal for steelmaking.
Desulphurisation treatment will reduce the sulphur in hot metal from 0.050% to
0.005%. In order to have better desulphurisation potential, co-injection of both
calcium carbide and magnesium based reagent of less than 250 µm is practiced
with nitrogen via refractory lance at the ladle bottom. The slag after
desulphurization needs to be skimmed from the top of hot metal to avoid
reversal of Sulphur during carbon oxidation in primary steel making. Dedicated
mechanised slag skimming machine for each station is envisaged for better slag
skimming.
Depending on steel chemistry of product-mix, facilities in desulphurization station
can be optimized. Primary steel making: Primary steelmaking processes can be
grouped under two major heads based on the type of metallic charge utilised in
the process:
Processes utilizing liquid iron (hot metal) as the metallic charge,
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Processes utilizing solid metallic charge.
The prevalent steelmaking process based on use of hot metal is the basic oxygen
furnace (BOF) process. The metallic charge in this process generally consists of
80-90 percent hot metal and 10-20 percent scrap as coolant. In case of non-
availability of scrap, iron ore of suitable grade can be used as coolant. The BOF
process is the work horse of the steel industry.
The economics of liquid steel production through conventional BF-BOF route is
also favourable. The electric arc furnace (EAF) and induction furnace (IF)
normally operate with the use of 100 per cent solid charge, comprising scrap and
DRI in varying proportions depending on their relative prices and availability. A
major input to the EAF and IF is electric power as the source of energy. The EAF
process can be adopted for a wide range of capacities. Steelmaking adopting IF
has generally been restricted to steel foundries and small capacity steel plants
due to the limited unit size of the IF. Use of hot metal as partial charge in the
EAF is also practiced, to utilize the sensible heat in the hot metal and reduce the
consumption of costly electric power.
A variant of the EAF is the twin shell furnace, which basically consists of two
furnace shells with a common swivelling roof. In this variety, around half of the
metallic charge is hot metal. The advantage of twin shell furnace is that melting
and refining can be alternately and simultaneously carried out in the two shells,
one in melting and the other in refining mode. The productivity of the twin shell
furnace is higher than the conventional EAF.
Due to high cost and limited availability of scrap, 100 per cent scrap melting
route is not a viable option for large steel plant in Indian scenario. Also, use of
DRI charge in higher proportion is not recommended due to high power cost. The
only viable option remaining in arc furnace route under Indian conditions is by
using a mix of hot metal and DRI as charge material. In view of non-availability
of natural gas in Karnataka, only coal based DRI production possibility remains
with a large number of DRI kilns required for attaining the desired level of
production.
In view of the above considerations, BF-BOF route is considered the only viable
option for steelmaking.
Secondary Steel Making: The secondary metallurgy facilities are required for
making quality steel. In order to ensure the requirement of high steel purity,
precise temperature & chemistry adjustment, lowest carbon content, oxide
inclusion modification to achieve high toughness, high formability, good surface
quality, high strength to weight ratio and low energy losses, a combination of
different secondary refining process are adopted depending on finished products.
The various secondary metallurgy facilities prevailing are:
- Ladle Furnace (LF): Temperature of liquid steel can be raised through electric
arcing. It helps to maintain buffer for casting. Also final trimming addition and
desulphurization is possible.
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- Composition adjustment through sealed argon bubbling – oxygen blowing
(CAS-OB): Temperature of liquid steel can be raised through aluminium
oxidation. It helps to maintain buffer for casting. Also final trimming addition is
possible. Steel grade requiring low oxide and Sulfur content are not preferred
through this unit.
Vacuum Degassing: Steel grades requiring low dissolved gasses are vacuum
treated. Also Ultra low carbon steels are treated in vacuum with Oxygen. The
major vacuum treatment units are:
Ruhrstahl-Heraeus degasser – Oxygen blowing (RH-OB).
Vacuum degassing – Oxygen blowing (VD-OB).
For degassing & deep decarburisation, two types of technologies are used –
vacuum tank degassing and RH degassing. RH degassing unit has been
considered for the proposed project over other degassing process due to the
following reasons:
- Faster treatment cycle,
- Floatation and agglomeration of inclusion in the slag phase due to vigorous
mixing in RH,
- Faster homogenisation of ladle content in case of alloy addition.
For function mentioned above, both chemical heating at CAS-OB and electrical
heating at ladle furnace can be used. To achieve sequence casting, both the units
can be used. Whereas, ladle furnace has more precise control in terms of heating
rate, CAS-OB unit provides higher heating rate. Facility for final sulphur reduction
is another advantage of ladle furnace. Keeping in view of above, ladle furnace
has been considered for this project.
Continuous casting: Continuous casting has proved its superiority over the ingot
casting process mainly because of its quality, energy saving and lower cycle
time. Today almost all the steel plants throughout the world are making steel
through continuous casting.
Taking into consideration the product mix and subsequently semis requirement of
the finishing mills, liquid steel are cast either into long products like billets,
blooms, rounds or flat products in the form of slabs. The liquid steel can also be
cast into near net shape like beam blank and thin slab.
Rolling Mills
Long products: For producing the long products envisaged in the product-mix, it
has been considered to provide a combi-mill for production of wire rod and rebar.
The capacity of the mills will be governed by the desired production levels for the
rolled products.
Flat products: Considering the range of steel grades, size range, quality and the
target capacity of hot rolled products, the following two options have been
considered:
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- Conventional slab caster and a semi-continuous hot strip mill route,
- Thin slab casting and rolling route (TSCR).
Hot rolled coil of the envisaged steel grades considered for the Project, including
low carbon, medium carbon and API grades, can be produced by both the routes.
Cold Rolling mill of capacity 1 MTPA along with Galvanizing unit of 0.6MTPA;
electrical grade steel (CRGO) 0.4 MTPA; colour coating unit 0.4 MTPA is
considered as value added final products.
Raw Materials, Fuel and Production Balance
The material balance for 5.26 MTPA steel production and is shown is shown in
Figure-3.
Raw Material Requirement
The consumption of raw materials and fuel for rated capacity of production of
steel are shown in the Table-1.
TABLE-1
SOURCE & QUANTITY OF RAW MATERIALS
Sr.No Raw Materials Source Gross Quantity, TPA
1 Iron ore fines Bellary–Hospet region, Karnataka 79,41,600
2 Iron ore lump Bellary–Hospet region, Karnataka 10,57,000
3 Limestone Bagalkot, Karnataka 5,42,300
4 Dolomite Bagalkot, Karnataka 4,79,600
5 Limestone Imported from Oman, UAE 8,68,900
6 Quartzite Local sources 65,800
7 Bentonite Kutch, Gujarat 44,900
8 Anthracite Imported from Australia, Indonesia 1,20,600
9 Prime coking coal
Imported from Australia, Canada,
Mozambique, South Africa, Indonesia 6,66,000
10 Semi soft coking coal
Imported from Australia, Indonesia
26,63,800
11 Coal PCI 9,54,200
12 Thermal Coal Singareni coalfields, Telangana 21,28,700
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FIGURE -3
PROCESS-CUM-MATERIAOW SHEET
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Services and Utilities
Water Requirement
The total water required for the proposed integrated steel plant 20.8 MGD
(3900 m3/hr). it is proposed to source from the following:
Tungabhadra dam located at 80 km from the plant;
Almati dam on Krishna river located at 200 km from the plant;
Hagari river at 3 km from the plant; and
Bore wells.
However, as per present regulation of the state one captive storage
reservoir with sufficient holding capacity to be installed and to be located in
between source and the plant with pumping system.
Plant Water System
A raw water reservoir, of around 15 day storage capacity, shall be provided
within the plant boundary. The requisite quantity of water shall be
continuously withdrawn from the reservoir to be treated in the Raw Water
Treatment Plant to makeup water quality. The water requirement for
d i f f e r en t processes is shown in the Table-2.
TABLE-2
WATER REQUIREMENT
Sr. No Unit Quantity of Water in m3/hr
1 Raw Material handling system 45
2 Sinter Plant 90
3 Coke oven & By product plant 450
4 Blast Furnace 550
5 HMDP 8
6 Converters including Calcining plant 280
7 Ladle Furnace 30
8 Slab caster -
9 Hot Strip mill -
10 TSCR 815
11 Billet caster 160
12 Wire rod mill 200
13 Power plant 775
14 Air separation plant 140
15 Softening plant 155
16 Deminerlised water plant 50
17 Drinking water 50
18 Other miscellaneous services 77
19 Colony 25
Total 3900
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Power Requirement
The estimated power requirement of the plant will be about 450 MW. In order to
meet the requirement of power for the proposed plant, a captive power plant of
capacity 3x150 MW has been envisaged.
The captive power plant will be run by utilizing the thermal coal/coal middlings
available in the state and surplus gas from the steel plant. The boilers shall be
designed for multi fuel firing. Some power would also be available from the top
pressure recovery turbine generators of the blast furnaces and coke dry
quenching units of coke oven plants.
Construction power of about 5 MW is proposed to be sourced through Karnataka
State Electricity Board from the nearest sub-station.
A separate coal based captive thermal power plant has also been envisaged to
supplement the captive power generation system from by-product gases. Under
normal condition when all the in-plant power generating units are available, the
entire sent-out power from the captive power generation system will be utlised
for catering the plant loads with balance power requirement met from the grid
power supply system.
Energy Balance
Power balance, giving the firm sent-out capability of the in plant power
generating units as well as the balance of the plant maximum power demand that
will have to be met from the grid power supply system.
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4.0 Site Analysis
Vedanta Ltd. proposes to install integrated steel plant of 5.26 MTPA with 450 MW
captive power plant at Amarapura, Teggina Budihal, K.B Hali, Chaganuru,
Siriwara, Bevinahalli villages in Bellary Taluk, Bellary District, Karnataka.
The majority of data on physiographic, geological features, infrastructure and
population have been collected from various reports, while data for soil, air,
water, noise and ecology will be collected during base line monitoring studies.
Climatological data was collected from meteorological office. The IMD data will be
compared with data collected during study period.
Seismicity
According to IS : 1893 – 1984, the study area falls in Zone-II (which can be
considered as calm zone). There is no major earthquake episode recorded in the
study area. Hence, seismically it is a stable zone.
[
5.0 Planning Brief
(i) Planning Concept (types of industries, facilities, transportation etc.)Town
and Country planning/Development authority Classification:
The proposed integrated steel plant of 5.26 MTPA capacity with captive power
plant of 450 MW falls under classification type 3(a) which is ‘A’ Category Project
as per EIA Notification 14-9-2006 and requires Environmental Clearance from
MoEF & CC.
(ii) Population Projection:
The requirement of total manpower will be about 10,000. However, the proposed
integrated steel plant will additionally generate more than 20,000 to 30,000
indirect secondary and tertiary employments.
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(iii) Land use planning (breakup along with green belt etc.):
Total land required for the proposed integrated steel plant is about 2423.17acres.
Out of which, 702 acres of land is in possession of Vedanta Ltd.
Sr.
No.
Purpose Total land
requirement (acres)
1 Area for Plant Establishment 1550
2 Area required for Main Raw Water Reservoir 350
3 Approach Road for plant 120
4 Colony for Employees and Workmen 383
5 Rail corridor from nearest railway siding to
plant
20.17
Total 2423.17
Green belt of 33% of the total project area will be developed
(iv) Assessment of infrastructure demand (Physical as well as social):
A need based assessment will be carried out to provide the necessary infrastructure
as part of ESR and CSR programs.
(v) Amenities / Facilities:
The existing social infrastructure in the study area includes the following.
o Bus Station;
o primary School;
o preliminary health centers;
Drinking Water Management
Water requirement needs are being met from municipal overhead tank. Which will
flow by gravity to different consumer points. Potable water supply pumps will take
suction from filtered water tank.
Sewerage System
The existing sewerage system in the study area will be improved as part of the CSR
activities
Industrial Waste Water management
Proposed project is designed for maintaining zero discharge except during monsoon.
The storm water and drains will be separately constructed to minimize storm water
contamination with process water.
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Solid Waste Management
About 25000 m3 of dismantle/demolish waste will be generated. About 1,00,000 m3
of earth and rocks will be generated during the ground preparation required which
will be utilized within the plant premises itself.
Major solid waste generated from the proposed plant complex would include BF slag,
SMS slag, gas cleaning sludge, ESP/bag filter dust, refractory debris, flyash and
bottom ash generated from plant etc. The iron ore, coal and other fines generated in
the process would be granulated and sold as raw material to cement manufacturing
units. The SMS slag would be recovered in the waste recycling plant (WRP) for
separation of magnetic components. The ash would be utilised for cement
manufacturing to the possible extent. The rejects would be dumped in a designated
area.
Waste oil, used oil and other hazardous wastes will be safely stored in
drums/tanks/covered shed and sold to authorized recyclers.
Organic waste will be used as organic manure in the green areas. The municipal
waste will be given to authorized agencies for suitable disposal.
6.0 Rehabilitation and Resettlement (R&R) Plan
The proposed project requires additional land contiguous to the existing land in
possession. Rehabilitation & Resettlement (R&R) will be carried out as per 2013 land
acquisition Act.
7.0 Project Schedule and Cost Estimates
Project Schedule
Project will be implemented in two phase:
The implementation schedule for the proposed project is 45 months from the date of
Environmental Clearance (EC). This includes 6 months for the dismantling and
preparation of Basic / Detailed Engineering, 39 months construction period and 3
months for commissioning.
Capital Cost Estimates
The capital cost of the proposed integrated steel plant is about Rs. 30,000 crores.
The overall cost on measures for the environment protection will be about 5% of the
total project cost i.e. Rs. 1,500 crores. The cost will include the plantation cost,
setting up of emission control and environmental monitoring equipments and stations
and development of the green land as per the government rules.
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8.0 Analysis of Proposal
Financial Benefit
The proposed project will generate revenue to the state government as well as
central government in the form of taxes and duties. The people around the region
will get direct and indirect employment thus improves the financial status
Social Benefits
The proposed project shall proactively participate in the upliftment of socio economic
index of the communities around the project site by way of financial and
administrative support. The project will open up employment opportunities, directly
and also indirectly. There shall be opportunities for entrepreneurs to engage in
many service sectors directly or indirectly associated with the project.
The CSR approach of the company shall be towards sustainable livelihood
management of the community around. There shall be focus on education, health,
sanitation, drinking water, agriculture, water shed management, culture identity
preservation, tribal welfare, welfare of socially weaker sections and marginalized
people.
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