APPLICATION FOR ENVIRONMENTAL CLEARANCE

(DETAILED PROJECT REPORT)

For

THE PROPOSED EXPANSION OF STEEL MELTING PLANT

AND ROLLING MILL AT PERAVALLUR VILLAGE,
PONNERI TALUK, TIRUVALLUR DISTRICT

Submitted to

State Level Environmental Impact Assessment Authority

Tamil Nadu

Submitted by

M/s. GBR Metals Pvt Ltd

# 4, Ramanan Road
Chennai – 600 079
Tamil Nadu

May 2016
 TABLE OF CONTENTS

Chapter Title Page

1.0 Introduction 1
1.1 Iron and Steel Industry in India 2
1.2 Re-rolling Industry in India 2
1.3 Long product Segment in India 3
1.4 Consumption 4
1.5 Exports and Imports 4
1.6 Construction Industry in India 5
1.7 Infrastructure Sector in India 6
1.8 Demand for steel products 7
1.9 Product Market 8

2.0 Project Proposal 9

2.1 Project Promoters 9
2.2 Project location 10
2.3 Process Technology 11
2.4 Plant Design and Layout 14
2.5 Land Requirement 14
2.6 Raw Material Requirement 15
2.7 Water Requirement 16
2.8 Power and Fuel Requirement 16
2.9 Manpower Requirement 16
2.10 Project Cost 16

3.0 Environmental Management 17

Air Quality Management 17
Wastewater Management 19
Solid Waste Management 19
 Noise Pollution Management 20

4.0 Conclusion 20

LIST OF TABLES

Table Title Page

2.1 Production Details 10
2.2 Environmental Setting 10
2.3 Land use Brake-up 14
2.4 Raw Material Requirement 15
2.5 Water Requirement 16
3.1 Expected Stack Emissions 18
3.3 Solid Waste Generation Details 19

LIST OF FIGURES

Table Title Page

2.1 Process Flow Sheet – M.S. Billets 13
2.2 Process Flow Sheet – Steel Rods 14
 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

1.0 INTRODUCTION

Steel is now produced in greater quantity than any other man-made material
except concrete. Steel is dominant in the manufacturing sector since it is
among the most widely used materials today what is particularly significant in
today’s ecology conscious world is that steel is the most recycled steel –
which makes sustainable growth in steel desirable. This is not the case with
many other metals/materials. The liberalization of the economy in the early
nineties accompanied by concerted efforts made by the government to
rejuvenate the steel industry have not only prompted government investment,
but have also encouraged many private players to get into steel.
Consequently, over the last couple of years the industry has been witnessing
unprecedented growth. The year 2004 was a landmark year in global steel
production- it crossed the 1000 million tone mark for the first time. The major
steel producing countries are listed below.

Crude Steel Production

Country Rank
(MTPA)
China 1 272.5
Japan 2 112.7
United States 3 98.9
Russia 4 65.6
South Korea 5 47.5
F.r. Germany 6 46.4
Ukraine 7 38.7
Brazil 8 32.9
India 9 32.6
Italy 10 28.4
Total 1056.7

India which is now the fourth largest economy in terms of purchasing power
parity is expected to overtake Japan and become third major economic within
ten years. Since steel is a major barometer of progress it will be logical to
expect growth in steel at a rapid pace growth in steel is normally directly
related to GDP. Some analysis actually believe that the Indian steel industry
will grow at a faster create than the GDP growth rate in coming years. To
support 8 percent growth rate of the economy, a completely different kind of
infrastructure (in terms of industrial complexes, railways, ports, factories) will
be required all of which are highly steel intensive.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 1

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

1.1 Iron and Steel Industry in India

Iron and Steel Industry in India is over 125 year old, India is the ninth largest
producer of crude steel in the world production of 33 million MT and
investment of over Rs1,000 billion. The country produced 32.6 million MT
finished steel in 2003-04, compared to a meager one million MT in 1947. Of
this, 21 million MT came from the secondary producers while the main
producers accounted for 15.18 million MT. The steel industry in India after the
policy reforms since 1991 is placed in a totally new environment Price
regulation of iron and steel was abolished on 16.1.1992. The Indian
Government, like others has realigned these policies to adjust to the
reorganization and reorientation of the forces of global economic
development. Hence competitions from imports and market opportunities for
exports have become normal features for iron and steel industry. In a recent
study conducted by Ministry of steel, demand for finished steel has been
forecast to reach the following levels.

Year Demand for Steel (In Million MT)

2000-01 29.916
2006-07 48.290
2011-12 75.580

1.2 Re-rolling Industry in India

There were 1192 Re-rolling units in the country with a total installed capacity
of 23.82 million MT per annum. These units produced 6.57 million MT during
the year 1999-2000. The same went up to over 8.00 million MT. The share of
secondary steel producer in India out of the total production of finished steel
has been assessed at 59 percent which itself proves the achievement of this
sector.

The secondary industry has always been recognized by the government and
the steel experts as a compliment to the main stream of steel industry. The
industry as catered thousand and thousand MT of its products to core
projects, dams, State Electricity Boards and other infrastructure projects in
India. The steel re-rolling industry caters to the needs of the domestic field up
to the tune of 68 per cent of the total requirement. 80 per cent of the total
exports of rounds and bars have been recorded from the secondary steel
producers.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 2

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

1.3 Long product Segment in India

Steel products are broadly classified into two segments namely long products
and flat products. Long products consist of bars, rod, angles, channels and
other structural materials which find applications mainly in civil engineering
contracts and structural materials. Bars are used in construction as
reinforcement for concrete. Flat products include plates, sheets and CIS. The
ratio of long products to flats in development countries is around 60.40
whereas the flat products dominate over long products in developed
countries. Long products in steel are those, whose length to cross section
ratio is greater than 10. Long products include bars, wire rods, angles,
structural and channels. They are required for a wide range of activities
ranging from making "Chulah" - an earthen over widely used in .Indian
Villages to construct bridges across rivers and seas. Building, Housing,
Supporting structures, Roofs, Railway lines, Girders are all fabricated from
longs. Requirement of long products is predominant in any developing
country. With the growth, in industry, the use of "Flat" products like plates and
sheets become popular. However, In India we are presently at a stage where
consumption of flat and long products hold almost equal share.
Generally speaking long products can be classified mainly into

- Bars/ Rods
- Wire Rods
- Structural like angles, channels and beams
- Railway materials

Bars and rods are produced in straight lengths (5m. to 12 m) or in coils (coil
weight 0.3 MT to 1.5 MT). Generally, sizes up to 12 mm are in coils and
higher sizes are in straight lengths. In both categories, they may be rebars for
construction or plain rounds for engineering and other applications. Main
producers in steel industry make both rebars and plain rounds whereas
rerollers make rebars (CTD bars/TMT Bars).
Requirement of long products is predominant in any developing country. With
the growth in industry, the use of "Flat" products like plates and sheets
become popular. However, in India we are presently at a stage where
consumption of flat and long products hold almost equal share.
Longs lack basically in its usage diversity. Only infrastructure is normally
capital intensive and hence in developing/ under developed countries, their
growth is constrained for want of funds. There is a need for longs to come out

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 3

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

of their conventional usage and find alternative usage. The production of

longs products in India during past period given below.
(in Million MT)
Year 1996-97 1997-98 1998-99 1999-00 2000-01
Bars & Rod 8.931 8.140 8.149 8.703 9.590
Structurals 2.533 2.724 2.740 2.547 2.440
Railway 0.619 0.610 0.533 0.482 0.618
Total 11.543 11.474 11.422 11.732 12.648

Long products in India are produced by major integrated steel plants and also
by a number of secondary re-rollers. Out of the total production of longs at
around 12.643 million MT in the year 2000-01, main producers produced
4.925 million MT and secondary producers 7.723 million MT i.e. steel majors
are able to meet only 35-40% of the demand at present capacity levels of
production. Balance 65-70-% demand is being met from over 1500 re-rolling
mills spread all over India. These re-rollers take semis, blooms, billet from
integrated steel plants or pencil ingot from Induction producers and further:
roll to longs. Most of the secondary re-rollers run on batch process. It is a fact
that the quality standard of longs produced from steel majors is (far superior
but due to the cheaper products from re-rollers, the price of longs from steel
majors is under great strain. All steels majors are finding difficult till recently to
retrieve the cash cost of the products.

1.4 Consumption

The annual apparent consumption of long products in the year 2000-02 was
at 12.263 million MT as against flat products consumption of 1.4318 million
MT, This shows that long products form about 46% of total steel consumption.
Long products consumption as a percentage of total steel consumption is still
at high level in India in comparison to 29.2% in USA and 37.1 % in European
Union.

1.5 Exports and Imports

Till mid nineties, India was a margin Exporter of steel, exporting only the
surpluses after meeting the Domestic demand. But since 1996-97, the
scenario has changed to a larger extent. India was able to export about 2.279
million MT of flat products and 0.385 million MT of non flat products in the
year 2000-01. Past imports and exports of steel items are given below.
(in Million MT)

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 4

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

Year Flat exports Flat imports Non flat exp Non flat imp
1995-96 0.546 1.477 0.729 0.059
1996-97 0.848 1.492 0.774 0.070
1997-98 1.275 1.53 0.605 0.054
1998-99 1.302 1.065 0.469 0.067
1999-2000 2.306 1.390 0.364 0.210
2000-01 2.279 1.338 0.385 0.079

1.6 Construction Industry in India

The constitution of India includes the right to live and have a livelihood as a
fundamental right. It also includes the right to housing policy. The directive
principles of the state policy make it an obligation on the state to facilitate
housing. Housing demand is a universal problem. Housing is one of the three
prime necessities of life. Food and clothing being other two prime
requirements, have' been met to some extent. Housing demand still needs to
be fulfilled. This is because of the shortage of funds and inadequacy of
financial institutions, coupled with an increase in costs of building materials,
labour and land. Currently less than 4 dwelling unit per 1000 of population per
annum get constructed in India. However the UN recommendation for
developing countries is of 8 to 10 dwelling units per 1000 per annum in the
next 20-30 years to arrest the deterioration of housing situation.

Today, the housing construction sector is not fully integrated in line with the
macro-economic governance of the nation. The overall productivity in this
sector is well below its actual potential. According to one survey report,
housing is growing slowly at just 4 per cent per year and -contributes a mere 1
per cent to India's GDP. Labour productivity in the sector is than one fifth of its
actual potential. The share of housing and construction sector to employment
is hardly 1 per cent. If all these hurdles in this sector are removed, then the
sector has the ability to generate 3.2 million jobs by the year 2010. Boost to
housing sector can rejuvenate the economy. Housing has maximum
propensity to generate income and demand for materials, equipment and
services. Funds allocated to shelter return in the shape of income and
demand to other sectors.
The housing and construction sector, besides being an opportunity for
catering to the housing end, is a major kick starter for the economy. For every
one crore rupees of investment in housing, nearly 290 industries in the
building material sector get activated besides the core manufacturing sector
constituting cement, steel and bricks. The consequent employment
opportunities generated amount to an order of nearly 750 man-years. Thus

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 5

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

one can achieve at three in one solution of employment generation, economic

development and human development through investments in housing.
The central government has committed itself to the goal of housing for all in
rural areas by the end of the Tenth plan period and has formulated a
comprehensive action plan for rural housing. The Golden Jubilee Rural
Housing Finance Scheme is proposed to be increased to cover 2.25 lakh units
in 2002-03 -up from the earlier target of 1.7lakh units. one lakh units have
already been financed in 2001. The allocation of the India A was Uojana is
increased by 13 per cent to Rs. 1.725 Crore for 2002-03. All this coupled with
the lowering of housing loans augur well for a greater demand for housing
both in rural and urban areas.
In India, growth of urban population during the past decade indicates higher
growth for metro cities. There are 6 mega cities (4 million plus) and 23
metropolitan cities in the country, which are estimated to have increased to 40
by 2001 AD. There are also 300 large towns (0.1 million) and 3.396 small and
medium towns (less than 0.1 million population). With economic liberalization
and expected higher economic growth, the rate of urbanization in India in
coming decades is likely to increases.
As per a study conducted by the United Nations, by the year 2015 - 10 of the
world's largest cities will be in Asia (excluding Japan) growth will be high and
the country is poised for rapid urbanization, which will lead to major
development in real estate infrastructure projects. The housing sector in India
has potential to bring back growth in the economy. The sector is recognized
as a major vehicle to produce and create wealth, generate employment and
earn foreign exchange. But sadly, the sector is still in the nascent stage of
development. India has vast opportunities in housing, but more has to be
done to harness the potential.

1.7 Infrastructure Sector in India

The Rakesh Mohan Committee in the India infrastructure Report has rightly
identified the cause, consequences, problem size and the resources needed
for making a dent in infrastructure development. The total requirement for
urban infrastructure development covering the backlog in service provision,
new investment and operations and Maintenance for the next 10 years is a
mammoth USD 60 Billion according to estimates of the Rakesh Mohan
Committee. This would mean per annum requirement of USD 6 Billion.
Against this mammoth figure, plan funds for urban infrastructure development
fall short by more than 10 times the requirement. The India infrastructure

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 6

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

Report, 1996 estimates the annual investment need for urban water supply,
sanitation and roads, at about 28.035 core for the next ten years. The; Central
Public Health Engineering (CPHEEO) has estimated the requirement of funds
for 100 per cent coverage of the urban population under safe water supply
and sanitation services by the year 2021 at Rs. 172.905 crore. Estimates by
Railln.dia Technical and Economic Services (RITES) indicate that the amount
required for urban transport Infrastructure investment in cities with population
100,000 or more during the next 20 years would be of the order of Rs.
207,000 crore. Obviously, sums of these magnitudes cannot be located from
within the budgetary resources of Central, State and Local Governments.
Compulsions have, therefore, arison to access financial resources from the
market and induce the private sector urban development programmes.
With a view to further strengthening the infrastructure availability in rural
areas, it was decided to restructure and streamline Jawahar Rozgar Yoj ana
to provide demand-driven rural infrastructure at the village level. The
restructured programme is implemented only at the village level and has
therefore, been renamed as Jawahar Gram Samridhi Yojana (JGSY). The
Central allocation for 2001-2002 was at Rs. 1,645.60 Crore. Most
infrastructure service are technologically complex, requiring large capital
investment, large quantities of energy and requiring constant maintenance. ,to
the extent that the pricing of such services remains constant or relatively
inelastic, or worse still, the service are not priced at all, the costs of services
are an increasing burden on relatively static municipal resources and state
budgets. This has led to a steady deterioration in the maintenance of city level
infrastructure services, throughout India. Hence a suitable concept of cost
recovery becomes necessary.

1.8 Demand for steel products

Apart from demand for steel from housing sector, substantial demand will be
there from other major end use applications as given below:
a) Industrial Buildings and civil works
b) Commercial buildings and complexes
c) Dams and Bridges
d) Infrastructure projects excluding roads and bridges.
e) Other uses including industrial uses.
The Indian Government has given top priority to infrastructure development
during next ten years. Hence huge investments proposed in this sector will
result in large scale civil works which leads to substantial increase in demand
for steel apart from cement and sand. Similarly planned approach towards

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 7

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

economic growth will stimulate industrial activity. Establishment of new

industrial undertakings in larger sizes will be required to maintain substantially
high industrial production, as there are remote chances of many of presently
closed industrial units. Booming consumer market has triggered construction
of commercial buildings and related civil works such as amusement parks,
sports grounds etc.
While it is well understood that demand for steel from all the above sectors
will be substantial and continuously growing, quantifying this demand sector
wise and region wise becomes very difficult due diverse nature of each sector
with requirement norms and uncertainties in actual implementation of various
plans. However, on a reasonable basis, the total demand from the above
sectors may be assumed to be at 100 to 150% of demand from housing
sector by 125%, the total demand on. All India basis and for individual state
may be estimated. As transportation cost will be major factor, long products
sales will be generally within a radius for 200-250 km from rolling mills.
The demand for long products is estimated based on various estimates for
finished steel. The estimated total demand for finished steel including exports
is 75.58 million MT, thus signifying and annual growth of 7.5% - 8.5%.
Assuming that there will be no significant structural changes in the country
during 10th and 11th Five year plan periods and the growth in construction and
manufacturing activities would not suffer due to shift in the pattern of
investment from the government to private foreign sources as envisaged in 9 th
plan period. The domestic demand for 2006-07 and 2011-2012 are estimated
and given below for bars and rods / structurals.
(in million MT)
Year 2001-02 2006-07 2011-2012
Bars and rods 10.233 17.709 30.500
Structurals 3.299 5.10 7.800
Railway materials 0.887 1.110 1.290
Total Non flats 14.419 23.927 39.590
Total flats 15.497 24.364 35.990
Total finished steel 29.916 48.291 75.580
Pig iron 3.300 4.540 6.250

1.9 Product Market

The products of the plant are fall under the category of bars and rods. It will
be gathering to Tamil Nadu Market and Kerala Market. The major thrust area
of market will be about 250 km radius around Coimbatore, where the unit will
be located. Detailed estimates based on discussions with industry people and

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 8

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

data available are prepared for demand in Coimbatore region for CTD bars,
TMT bars and structurals with likely break up in normally moving sizes. More
over, the market scope is analysed here as a new entrant without much
business contracts. Ogun steels, belonging to a leading business group in
Coimbatore and Palakkad with many group companies and a large number of
customers, business associates and material/product suppliers are expected
to successfully market the entire output of products without any difficulty,
especially with a good product quality based on a graded input material for
Billet manufacturing. Even then, suitable market promotion efforts are
necessary to achieve the same.
We believe that success of our industry would be in the philosophy of offering
timely delivery and meeting the customer standards. The demand for power is
increasing day by day. Our associate concerns experience in this line of
industry emphasis us to give considerable importance on cost, quality and
reliability. We have placed tremendous emphasis on formulating and
implementing rigid systems and procedures at every step of the process. Our
strategy of marketing is in developing a good relationship with our customers.
This approach comprises.
1. Manufacturing good materials to meet the needs in relation to delivery and
quality.
2. Effecting and upgrading continuous improvements in technology
3. Using our capacity to fulfill the cost target needs

2.0 PROJECT PROPOSAL

2.1 Project Promoters

M/s. GBR METALS PRIVATE LIMITED, is a Private Limited company

incorporated in 2006 and its registered office is at # 4, Ramanan Road,
Sowcarpet, Chennai – 600 079. The Company has been incorporated with the
main object of manufacturing and trading of iron and steel products viz. TMT
Bars and M.S. Billets. The Unit is situated at #295, G.N.T.Road, Peravallur
Village, Ponneri Taluk 601 206.

GBR TMT is certified by the Bureau of Indian Standards for Conforming with
the norms as per IS 1786: 2008. The sizes of TMT Bars produced range from
8 mm to 32 mm thickness. To ensure quality, the Company manufactures
M.S. Billets for the purpose of rolling which have also been certified by the
Bureau of Indian Standards as per IS 2830 : 1992. The Units consists of the
Furnace and the Rolling Mill unit. Each unit has its own separate testing
facilities to ensure autonomy in the control procedure.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 9

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

The consented production capacity of the plant is to manufacture TMT Bars of

60,000 MTA, for which the additional requirement of 33,100 MTA of M.S.
Billets need to be procured from the local market. Therefore the company
would like to expand Billet making capacity from 27,000 MTA to 90,000 MTA
and capacity to roll 90,000 MTA of TMT Products. In plant, the company is
producing re-rolled products using MS Billets. The melting unit features 2 No’s
of 8 MT induction furnace with two crucibles. To reduce the large procurement
of MS Billets from local market, GBR Metals Pvt Ltd proposed to increase the
capacity of its steel melting plant ie., 2 no’s of 15 MT induction furnaces will
be installed by replacing the 2 no’s of 8 MT induction furnaces. Only one
crucible will be operated at a time for a furnace and the other will be kept as
stand by. The total estimated cost for the proposed expansion project is about
Rs. 5.0 Crores.
TABLE - 2.1
PRODUCTION DETAILS
Existing
Upon Expansion
S. No. Products Consented
(TPM)
(TPM)
1. Re-rolled steel 5000 7500
products (60,000 TPA) (90,000 TPA)
Intermediate products
1. M.S. Billets 2250 7500
(27,000 TPA) (90,000 TPA)

2.2 Project location

The plant site is situated at the Peravallur Village, Ponneri Taluk, Tiruvallur
District in State of Tamilnadu. The plant is about 15.9 km, WSW from
Tiruvallur. Plant site is 0.5 km, West from Guntur-Chennai National Highway
(NH–5) and 1.11 km, South from Ponneri State Highway (SH-56). The nearest
Railway Station is Ponneri R.S., which is at a distance of about 6.3 km, ENE.
The nearest airport is at Chennai located at a distance of 34.7 km, South. The
details of environmental setting are given in Table-2.

TABLE - 2.2
ENVIRONMENTAL SETTING

S. No. Particulars Details

S.No Latitude Longitude
o o
A 13 18.499’ N 80 8.947’ E
o o
1 Site Co-ordinates B 13 18.391’ N 80 8.949’ E
o o
C 13 18.386’ N 80 8.919’ E
o o
D 13 18.425’ N 80 8.917’ E

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 10

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

o o
E 13 18.421’ N 80 8.814’ E
o o
F 13 18.456’ N 80 8.810’ E
o o
G 13 18.459’ N 80 8.857’ E
o o
H 13 18.480’ N 80 8.854’ E
o o
I 13 18.473’ N 80 8.810’ E
o o
J 13 18.499’ N 80 8.806’ E

2 Elevation above MSL 17 m

3 Climatic conditions 1. Annual Max. Temp: 43oC
2. Annual Min. Temp: 18oC
3. Annual average rainfall: 698 mm
4 Land use of the project site Unclassified Land use Zone
5 Nearest Highway (Adjacent) NH-5 (Guntur-Chennai), 0.5 km, West
SH-56 (Ponneri Highway), 1.11 km,
South
6 Nearest Railway Station Ponneri R.S. – 6.3 km, ENE

7 Nearest Air Port Chennai Airport – 34.7 km, South

Peravallur – 0.94 km, NE
8 Nearest habitation
Ponneri – 6.02 km, NE
9 Nearest major town Ponneri – 6.02 km, NE
Tiruvallur – 15.97 km, WSW
10 Ecologically sensitive zone No national parks and Sanctuaries
(Wild Life Sanctuaries) within 10 km radius
11 Reserved Forests Erumavettipalayam R.F - 9.0 km, SSW
Peria Puliyur Forest – 10.15 km, NW
12 Defense Installation/Historical
Nil in 10 km radius
Monuments/Archaeological/ports
13 Historical places Nil in 10 km radius
No resettlement and rehabilitation
14 Socio-economic factors
involved
15 Nearest river Arani River – 3.25 km, North
Korttalaiyar River – 5.45 Km, South

2.3 Process Technology

The conversion of iron scrap in to billets does not require any sophisticated
technology. Various grades of scrap such as super melting scrap, bazaar
melting scrap commercial scrap, sponge iron are melted in electrically
operated induction furnace and will be poured into the billets using a
Continuous casting machine. Then the billets to the desired finished section in
the hot condition by way of passing the material between a pair of grooved
rolls and providing suitable drafts at various stages. The whole operation is
conducted at a particular temperature range and within a limited time span.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 11

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

The stages of rolling operation are comprised of heating of feed stock to

rollable temperature, rolling the feeding stock in different mill stands, cropping
the hot bar during the process of roiling between mill stands as applicable and
subsequently finishing in form of hot rolled deformed bar in straight length.
The hot bar coming out of the last pass is then conveyed through TMT line
and collecting in a cool bed after shearing. The bars at almost ambient
temperature are sheared to commercial length stored and kept ready for
dispatch.

2.3.1 Manufacturing Process – Steel Melting Unit

The unit proposes to increase its production capacity of M.S. Billets. The 2
no’s of 15 MT induction furnaces will be installed by replacing the 2 no’s of 8
MT furnaces. Only one crucible will be operated at a time for a furnace and
the other will be kept as stand by. Pre-tested steel and iron scrap of different
varieties are charged into the Induction Furnace Crucible by Electro Magnets.
These crucibles are already lined with Refractory Ramming Mass. The solid
state inverter converts the three phase supply at normal frequency to DC
supply and the DC supply is converted to AC at medium frequency of 1000
cycles in the inverter with the help of water cooled capacitor of suitable rating
and capacity. The induction heating is aided by the flow of Medium frequency
current in the coil which is supplied by the use of Static Frequency Convertor,
DC choke, Capacitor Bank and Water cooled power cables.

Due to the high frequency, an induced current develops a heating effect inside
the crucible in which the scrap is charged and the scrap will be melted by
Induction heating into a liquid form. The liquid metal is tested in the laboratory
and necessary ingredients such as Sponge Iron, Silico Manganese are added
in required proportions. The temperature of the liquid metal is allowed to rise
in the furnace and samples are collected for testing the final composition in
the laboratory after removal of slag.

The temperature is constantly checked with the help of the optical

thermometer in the refractory lined crucible. After the temperature has
reached about 1680°C the furnace is tilted with the help of the hydraulic
system. The liquid metal is poured in the ladle and is sent to the Continuous
Casting Machine, wherein the Billets are manufactured in the length and sizes
as required.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 12

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

MS SCRAP

FLUE GAS TO
SPONGE SCRUBBER/
IRON PROPOSED
BAG FILTER

INDUCTION FURNACE

SILICO
SLAG TO
MANGANESE
LANDFILL
CONTINUOUS
CASTINGS

MS BILLETS

FIGURE – 2.1
PROCESS FLOW SHEET – M.S. BILLETS

2.3.2 Manufacturing Process – Re-rolling Mill

The Unit proposes to increase its production capacity of Re-rolled steel products
by optimum utilization of the existing plant and machinery in the re-rolling mill.
The M.S.Billets produced in the Unit is fed into the re-heating furnace that uses
Producer gas, Coal Pulverizer or Furnace Oil as a fuel. In the furnace these
charged M.S. Billets will be heated to a desired temperature. After heating, the
red hot iron will be drawn into Re-rolled Steel product of desired dimensions and
will be dispatched to the market after proper bundling and inspection. Water is
being used as a coolant during the drawing process and the same will be
recycled back from the underground sump with the help of re-cycling pump
provided. The Mill-scale generated during the process will be given out for
Landfill and road making process. For re-heating furnace any one of the following
fuels will be used such as furnace Oil, Producer Gas and Pulverized Coal
depends on the availability of fuels in the market.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 13

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

M.S. BILLETS FROM

THE UNIT
COAL COAL

COAL TAR
(INCASE OF
COAL COAL PRODUCER GAS)
GASIFIER PULVERISER

CONTAMINANTS
PRODUCER REHEATING FURNACE TO SCRUBBER
GAS

ASH (IN CASE OF

FURNACE OIL PRODUCER GAS &
PULVERSIR

RE-ROLLING MILL SCALE

RE-ROLLED STEEL
PRODUCTS

FIGURE – 2.2
PROCESS FLOW SHEET – STEEL RODS

2.4 Plant Design and Layout

The project site is located in S.F. No. 111/2B, 2C1, 2C2, 2D2A, 2D3A, 2E1A,
2E2A, 1A, 1B & 2A2 of Peravallur Village, Ponneri Taluk, Tiruvallur District,
Tamilnadu In the expansion of steel melting plant 2 no’s of 15 MT induction
furnaces will be installed by replacing the 2 no’s of 8 MT induction furnaces.
The layout map of the proposed expansion project is shown in Annexure I

2.5 Land Requirement

The total land available under the ownership of the GBR Metals is 3.26 ha (8.08
acres). The proposed expansion activities will be carried out within the existing

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 14

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

area itself. Hence, no additional land is required for the proposed expansion
project. The land use break-up is given in Table - 2.3.

TABLE - 2.3
LANDUSE BREAK-UP
Area (ha)
S. No. Land use
Existing After Expansion
1. Build up area 0.40 0.61
2. Products storage area 0.30 0.45
3. Green belt 0.25 1.08
4. Road and Open space area 1.25 1.12
5. Weigh bridge 0 0.005
Total 2.2 3.265

2.6 Raw Material Requirement

The raw materials are different type of MS scrap, sponge iron and aluminium
ingots. The raw material requirement details before and after expansion are
presented in Table - 2.4
TABLE - 2.4
RAW MATERIAL REQUIREMENT

Intermediate Products required for M.S. Billet

Quantity (Tons/Annum)
S. No. Raw Material After Source of raw
Existing material
Expansion
Steel Melting Unit

1. MS Scrap 23,526 78,607

2. Silico Manganese 216 720 Local Market

3. Sponge Iron 3,375 11,300

Intermediate Products for Finished Goods (Re-rolled Steel Product)

1. M.S.Billets 60,100 TPA 90,500 TPA Own Manufacturing

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 15

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

2.7 Water Requirement

Water requirement in the plant is for drinking purposes, cooling the
machineries and scrubber make-up. The entire water requirement of the plant
is being sourced from the existing bore well. The total water requirement
before and after expansion is given in Table - 2.5.

TABLE - 2.5
WATER REQUIREMENT

Requirement (KLD)
S No Category
Existing After Expansion
1. Domestic purposes 7 12
2. Machinery cooling 8 7+8* =15
3. Scrubber make-up 0.5 1
Total 15.5 (12+7+1)= 20
*Recycled Water from RO

2.8 Power and Fuel Requirement

The power used for the existing production is 10 MVA, which is being sourced
from TANGEDCO. After expansion the power requirement will increase to 13
MVA, which will also be met from TANGEDCO grid. Furnace Oil or Producer
gas or pulverized coal is used as one of the fuel source for reheating furnaces
in rolling mill. To meet the emergency power requirement during the grid
failure, a diesel generator with capacity of 160 KVA is available which shall be
used only for common facilities. The 600 KVA DG set is proposed for the
proposed expansion.

2.9 Manpower Requirement

The manpower in the existing plant is 60 Nos. It will be increased to 75 Nos
after the proposed expansion which includes officers and supervisors.

2.10 Project Cost

The total estimated cost for the proposed expansion project is about Rs. 5.0
Crores in which, the unit is equipped with the necessary plant and
machineries such as new furnaces, Continuous stand, D.C. Drives, laboratory
equipment, etc.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 16

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

3.0 ENVIRONMENTAL MANAGEMENT

In the process as well as in the auxiliary plants, along with the useful product
several waste materials will also be generated. These waste materials include
gaseous emissions, wastewater generation, solid waste and noise
generations. The waste products produced by the steel rolling mills directly
related to the metal type, the furnace type and the fuel used.
By volume, gaseous waste is the largest waste source from the steel rolling
mill. Most of the gaseous metal emissions are captured in the emissions
control systems attached to reheating furnaces and cleaning areas of the
plant.

The quantities and the composition of the gaseous and solid waste that are
generated in the plant will be regulated such that their final disposal into the
environment meets all the statutory requirements and the environmental
impacts are minimized.

The sources of particulate and gaseous emissions are induction furnaces

and reheating furnaces
The source of wastewater are domestic usages and wet scrubber
The solid wastes generated from the entire plant are metal scraps, furnace
slag, end bits, mill scale residue from solar evaporation pan and ash.

3.1 Air Quality Management

The source of air emission from the expansion project is the dust and
gaseous emission from the proposed Induction furnaces in melting shop and
reheating furnaces in rolling mill. The melting of metals and alloys in the
induction furnaces generates dust and metal oxide fumes.
These dust and fumes are extracted from the furnace and they are passed
through an air pollution control system consists of dust collector, bag filter
followed by the wet scrubber and then it was released onto the atmosphere
through common stacks of above 30.0 m each.
The heating of billets in the reheating furnaces using coal generates dust and
flue gases. These dust and gases are extracted from the furnace and they are
passed through a dust collector and then to the bag filter. After dust filtration,
it will be passed to the wet scrubber. The clean air from the wet scrubber is
then released onto the atmosphere through individual stack of 30.0 m height.

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 17

 Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

The expected air emissions in the existing project are Particulate Matter,
Sulphur dioxide and Oxides of Nitrogen and the details are given in Table –
3.1

TABLE – 3.1
EXPECTED STACK EMISSIONS (EXISTING)

Stack No *1 *1 *2 *3 4*
Material of M.S M.S M.S M.S M.S
Construction
Stack attached to Induction Induction Re-Heating D.G. Set Coal
Furnace Furnace Furnace 160 KVA Gasifier
8T 8T
Stack height Above 30.0 30.0 30.0 6.9 25
the ground level, in m
Stack Round or Round Round Round Round Round
top Circular
Inside dimensions of 500 500 250 75 150
the stack at top, mm
3
Gas quantity – Nm /hr 14787.7 12875.3 7143.4 - -
Flue gas temperature, 69 63 127 - -
°C
Exit velocity of the 9.1 7.9 9.2 - -
gas, m/s
Emission
3
concentration, mg/Nm
SO2 26.4 21.1 5.3 - -
NOx 104.0 98.0 111.7 - -
PM 36.2 38.6 14.2 - -

M/s. GBR METALS PVT LTD, Peravallur Village, Tiruvallur District 18

Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

3.2 Wastewater Management

The quantity of wastewater generation depends upon the quantity of water

used for various purposes. 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
of induction furnace coil, inverter and capacitor, cooling of rolls and in TMT
Line water box etc. No wastewater is generated from cooling operation. Water
from the cooling operation is left in the cooling pond followed by the guard
pond. After cooling, the water was used for nourishing the green belt.

Water is also used in wet scrubber to control the dust emission from the
furnaces. In this operation, 0.7 KLD of wastewater will generated, which will be
evaporated in the solar evaporation pan. The details of the solar evaporation
pan are given in Annexure XVII.

From the domestic uses (drinking and sanitation), sewage is generated. The
sewage generation expected after the proposed expansion is 11 KLD. The total
quantity of the sewage will be treated in the existing sewage treatment plant
having a capacity of 60 KLD.

3.3 Solid Waste Management

The quantities of solid waste generation before and after the proposed
expansion in the steel melting plant are presented in Table – 3.3.

TABLE – 3.3
SOLID WASTE GENERATION DETAILS (UPON EXPANSION)

Quantity
S. No. Source Waste management
(TPA)
Steel Melting Unit
The slag generated from the
process will be disposed to
1. Furnace slag 458
village people for filling low lying
areas.
2. Solar pan residue 23 Filling material in low lying areas
3. Runner, riser & scraps 180 Re-melted in the process

Steel rolling mill

1. End bits 90 Re-melted in the process
The mill scale generated from the
2. Mill scale 130
Re-rolling process will be

M/s. GBR Metals Pvt Ltd, Peravallur Village, Tiruvallur District 19

Proposed Expansion of Steel Melting Plant and Rolling Mill Project Report

disposed to village people for

filling low lying areas.
The ash generated from the coal
gasifier unit will be sold out to the
3. Ash 75
road laying agencies for their
reuse.
The coal tar generated by the
coal gasifier unit will be sold out
4. Coal Tar 8.5
to the road laying agencies for
their reuse.
Domestic Waste
The Municipal solid waste Will be
1. Municipal solid waste 5.6 collected by local Village
Panchayat.
The de-watered sludge will be
2. STP Sludge 4.5 properly dried, pelletized and
used a manure for gardening.

3.4 Noise Pollution Management

The major noise generating sources in the steel melting shop, mould removal
process, fettling operation, rolling mill are the rollers of the different mills,
blowers, compressors and standby DG set. The noise levels at 1m away from
these sources will be maintained at less than 75-dB (A) in compliance with the
statuary requirements.

4.0 CONCLUSION

The project is well conceived and effectively planned by one of the leading
Industrial houses of Tiruvallur. With the Indian GDP growth poised to reach 8
percent and prediction indicating a high level investment in infrastructure
fields, the government's emphasis on development of infrastructural facilities
in the country the steel industry will witness accelerated growth of more than
15% per annum. Realizing this trend, the GBR Metals Pvt Ltd has taken a
proactive step to expand the capacity of steel melting plant and rolling mill in
Tiruvallur district, which is in close proximity to the growing infrastructure
market. This project will be implemented within six months from the date of
approvals and thereon commercial production will commence. This unit is
expected to provide additional employment to around 15 persons directly and
to more than 50 persons indirectly. By adding more advanced technologies
and cost effective production techniques, this group will achieve cost
competitiveness over other players in this field.

M/s. GBR Metals Pvt Ltd, Peravallur Village, Tiruvallur District 20