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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





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





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





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:





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.













(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





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.





(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.





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.





FIGURE-1

INDEX MAP

Proposed Project Site

STATE MAP





FIGURE-2

STUDY AREA MAP





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:


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






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





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,





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.





- 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:





- 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

Pre-Feasibility Report for Proposed the Proposed 5.26 MTPA Integrated Steel Plant and 450 MW Captive Power Plant Near Bellary, Karnataka



FIGURE -3

PROCESS-CUM-MATERIAOW SHEET





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





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.





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.





(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.





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.





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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