ESSAR STEEL INDIA LIMITED
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF
ELECTRIC ARC FURNACES (EAF’s) OF
STEEL MAKING PLANT (SMP-1)
BY
BASIC OXYGEN FURNACES (BoF’s)
IN HAZIRA FACILITY OF
M/S. ESSAR STEEL INDIA LTD
SURAT, GUJARAT STATE
ESSAR PROJECTS (INDIA) LIMITED
ENGINEERING & PROJECT MANAGEMENT
DOC NO: 2715-H000-Z00000-0001-0120-0002 R0
November 2014
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
CONTENTS
1.
EXECUTIVE SUMMARY ........................................................................................................ 3
2.
INTRODUCTION .................................................................................................................. 12
2.1
Identification of the project and project proponent ............................................................. 12
2.2
Brief description of the nature of the project ...................................................................... 13
2.3
Need for the project........................................................................................................... 13
2.4
Demand-Supply gap.......................................................................................................... 13
2.5
Employment Generation.................................................................................................... 13
3.
PROJECT DESCRIPTION.................................................................................................... 13
3.1
Type of project and interlinked/ interdependent projects.................................................... 14
3.2
Location map..................................................................................................................... 14
3.3
Details of site considerations............................................................................................. 15
3.4
Size/Magnitude of Operation ............................................................................................. 15
3.5
Project description with project details............................................................................... 15
3.6
Raw materials and linkages............................................................................................... 25
3.7
Resource optimization/Recycling and reuse...................................................................... 26
3.8
Availability of water, its source, energy/power requirement and source ............................. 26
3.9
Quantity of waste generation and scheme for management/disposal ................................ 27
3.10 Information of EIA purpose.................................................................................................. 28
4.
SITE ANALYSIS................................................................................................................... 28
4.1
Connectivity....................................................................................................................... 28
4.2
Land form, land use and land ownership ........................................................................... 29
4.3
Topography....................................................................................................................... 29
4.4
Existing land use pattern ................................................................................................... 29
4.5
Existing infrastructure........................................................................................................ 30
4.6
Soil classification............................................................................................................... 30
4.7
Climatic data ..................................................................................................................... 30
4.8
Social infrastructure available............................................................................................ 32
Confidential
5.
PLANNING BRIEF ............................................................................................................... 32
5.1
Planning Concept .............................................................................................................. 32
5.2
Population Projection ........................................................................................................ 33
5.3
Land Use planning (break up along with green belt, ect) ................................................... 33
5.4
Assessment of Infrastructure Demand (Physical and social) ............................................. 34
5.5
Amenities/facilities............................................................................................................. 34
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 1 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
ESSAR STEEL INDIA LTD
6.
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
PROPOSED INFRASTRUCTURE........................................................................................ 34
6.1
Industrial area ................................................................................................................... 34
6.2
Residential area ................................................................................................................ 34
6.3
Green belt ......................................................................................................................... 34
6.4
Social infrastructure........................................................................................................... 35
6.5
Connectivity....................................................................................................................... 35
6.6
Drinking water management.............................................................................................. 35
6.7
Sewerage system.............................................................................................................. 35
6.8
Industrial & solid waste management ................................................................................ 35
6.9
Power requirement & Source ............................................................................................ 35
7.
PROJECT SCHEDULE AND COST ESTIMATES................................................................ 35
7.1
Project Schedule ............................................................................................................... 35
7.2
Estimated Project Cost...................................................................................................... 36
8.
ANALYSIS OF PROPOSAL................................................................................................. 38
LIST OF EXHIBITS
Confidential
Exhibit
Description
Drawing number
1
Location Plan of BOF
2715-H000-Z00000-0007-0700-0002
2
Process Flow Diagram of BOF
2715-H000-A20100-0020-2053-0002
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 2 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
1.
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
EXECUTIVE SUMMARY
Essar Steel India Ltd (ESTIL) is one of the group company of the diversified multinational conglomerate
Essar Group spanning in the manufacturing and service sectors of Steel, Energy, Power,
Telecommunications, Shipping & Logistics and Projects.
The company (Essar Steel India Ltd.) operates a large single-location well-planned, sophisticated and
environment-friendly integrated steel complex in the “Hazira Notified Area” at a distance of 27 km
(Surat-Hazira road) from the Surat City in the State of Gujarat, India. The steel complex is supported by
comprehensive Steel, Energy, Power, infrastructure setup including a captive port, power plant, lime
plant, oxygen plant, wide road network, multiple stock yard, etc. The company is also upholding
widespread social infrastructure facilities within the premises.
ESTIL has the facility to produce 9.6 MTPA plain carbon steel slabs/coils from its existing two different
steel making facility viz. SMP-1 and SMP-2. DR module-BF/Corex-DC EAF and DR module-BF/CorexCONARC represent two several routes for SMP-1 and SMP-2 respectively.
DRI contribute at about 70% metallic towards steelmaking and rest of the feed material for steel
furnace comes by hot metal route. In current scenario, DRI production becomes an economically
unviable option due to non-availability of natural gas and substantial increase in its price coupled
with high cost of DR Pellets. As a result, it is decided to phase out all DR modules except modules
V & VI to utilize the Corex gas as process needs.
Hence, it is intended to install Blast Furnace Complex to produce additional 3.0 MTPA hot metal to
supplement almost equivalent amount of solid metallic expected from modules I-IV.
As far as hot metal usage in steelmaking is concerned, it is foreseen from the past operational
experience and recent technological development that hot metal in DC EAF will not be able to give
throughput as it is conceived from basic oxygen furnace. Furthermore, DC EAF requires
modification along with its supportive fume extraction system to enable maximum hot metal
charging. Nevertheless to say that hot metal charging in EAF is neither energetically beneficial nor
even attractive option to maximize hot metal charging into the furnace & throughput from the
furnace.
Hence, ESTIL has decided to reconfigure entire SMP-1 complex with oxygen blown steelmaking
by installing basic oxygen furnace (BOF).
Confidential
Keeping in view of the reconfiguration of SMP-1, following assets are envisaged further to the
system to maintain same volume of steel.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 3 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
Plant
Configuration
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Annual production capacity
Steelmaking
Basic oxygen furnace
3 x 155 T
4.6 MTPA liquid steel
De-sulphurisation plant
155T twin station
3.5 MTPA clean hot metal
Hot metal granulation unit
1X 300 TPH
NA
Ladle Furnace
1x 150 T
NA
The brief description of above mentioned facilities are depicted under subsequent topics.
PROJECT DESCRIPTION
All the proposed units are of brownfield in nature. The major technological features and necessary
requirements for all the upcoming units are elaborated in subsequent section.
A.
Basic oxygen furnace (BOF)
At present, four (4) Nos. of DC EAF are used to produce 4.6 Mtpa crude steel followed by continuous
casting through 3 Nos. of conventional slab caster.
In proposed reconfiguration three (3) Nos. of BOF are envisaged in place of EAF’s area along with
associated facilities.
Keeping in view of the existing EAF's size, the new basic oxygen furnace (BOF) has been envisaged
with 155 t nominal capacity to utilize common facilities at the maximum extent. The three BOF’s will
operate simultaneously to derive the maximum production potential of BOF. It is proposed to design the
BOF to produce average 32 heats per day per furnace from available hot metal on daily basis.
In order to improve quality of steel, hot metal shall be pretreated in HMDU before charging into BOF as
and when required.
One hot metal granulation unit is proposed to cater the hot metal granulation during unscheduled shut
down of SMP-1 without interfering rated production of blast furnace.
All latest technologies associated with BOF for efficient operation have also been considered. These
are as follows:
Confidential
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DOC NO:
Scrap handling facilities
Hot metal handling facilities
Flux & ferro alloy handling facilities
BOF Vessel system
Convertor tilt drive with emergency tilting device
Slag handling system
Oxygen lance system with slag splashing device
Lance maintenance platform
Bottom stirring system
Measurement system (Laboratory equipment)
2715-H000-Z00000-0001-0120-0002 R0
Page 4 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD








BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Liquid steel handling equipment
Waste gas cooling system
Waste gas cleaning system
Gas recovery station (Change over station)
Gas storage system
Gas export station
Secondary emission control systems
Shop EOT Cranes
Major parameters considered for the operation of the BOF are indicated below:
Description
Liquid Steel production
No. of converters
Units
Values
t/yr
4,310,000
3 x 155 t
(3/3 operation)
155/160
32-36
290
40-45 approx.
80-90
1-10%
1-10%
120
80
54
Nos.
Nominal / Maximum heat size intended to process.
Average heats/day/BOF
Operating days/year
Tap to Tap time
Hot metal
Scrap
HBI
Slag rate
Flux
Oxygen
t
No.
d/yr.
min
%
%
%
kg/tls
kg/tls
3
Nm /tls
NOTE: Here, BOF Capacity stated as 4.31 MMTPA. This capacity is mainly due to current prevailing
Market scenario and hence, Caster Capacity. BOF Plant Capacity is still 4.6 MMTPA.
The annual inputs to BOF to produce 4.31 MTPA of liquid steel are indicated below:
Description
Hot metal
Scrap
HBI
Flux (Calcined Lime & Dolomite)
Units
Values
t
t
t
t
4,167,125
309,575
373,297
344,740
An average annual yield from BOF is given below.
Description
Confidential
Liquid steel
BOF Slag
BOF dust & sludge
Steam
BOF gas
Waste water
DOC NO:
Units
Parameter
t /year
t /year
t /year
t /year
3
Nm /year
3
m /year
4,310,000
517,100
64,600
409,400
6
487 x 10
3,53,280
2715-H000-Z00000-0001-0120-0002 R0
Page 5 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Hot metal desulphurization unit
Operating and design features
Hot metal desulphurization unit having twin stations system has been envisaged to reduce the sulphur
level of the hot metal before charging into furnace. Each station is having separate injection system,
ladle transfer car, deslagging equipment & other facilities. Only the material storage facilities is common
for the both the station. Desulphurization will be carried out using lime and Magnesium (Mg) containing
agents injected into the hot metal with the help of nitrogen gas as a carrier gas. Depending upon the
requirement of desulphurization, cycle time in desulphurization unit will be 35 to 40 min.
After desulphurization, the slag will be raked off with the help of slag raking machine and slag will be
dumped in to slag pot.
Hot metal ladles before & after treatment will be handled by EOT cranes.
The board technical data parameter for Desulphurization unit as below.
Sl.
parameter
Unit
no.
1.
Nominal Heat weight
t
2.
No. of stations
No
Value/features
155
2
3.
Injection Lance system (Co-injection)
Set
4.
5.
6.
7.
8.
9.
Treatment cycle per heat
Agent for desulphurisation
Minimum free board in ladle
Injection media
Temperature of HM at BF tapping
Temperature at DS
Temperature drop of HM after DS Unit
including deslagging
S-level before treatment
S-level after treatment
Treatment Capacity
Operation Days
Capacity of Unit
min.
mm
C
C
2 Independent lance –
(One working & one
stand by)
35-40
Mg & lime
400
Nitrogen gas
1400-1450
1350-1400
C
Max. 30
%
%
Ladles/day
Days
MTPA
0.05-0.07
≤ 0.005
36
320
3.5
10.
11.
10.
12.
13.
14.
Confidential
Major components of Hot Metal Desulphurization unit

Conveying system of Materials

Storage tank

Dispensers

Lance and Lance hoisting Device

Ladle Transfer Car

Slag Pot Transfer Car

De-slagging equipment
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 6 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD

Dust collecting equipment

Temperature measuring and Sampling device

Lance maintenance area

Electrical and Instrumentation facility

Level II automation
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Hot metal granulation unit
Operating and design features
The granulation unit is designed for granulation of large batches of crude iron at a rated capacity of 5t/minute.
Minimum metal temperature shall be 100°C above liquidus temperature.
The hot metal is transferred in ordinary transfer ladle to the granulation plant by overhead crane. The metal is
poured over the lip of the ladle into a tundish. The tundish is placed on a stand which is kept on top of the
granulation tank.
The granulation rate is mainly controlled by nozzle diameter and ferrostatic pressure of the tundish. The metal
level is controlled by a laser-measuring device placed on a stand above the tundish. The signal from the laser
measurement is used to control the auxiliary hook speed of the overhead crane.
An emergency overflow launder will lead the hot metal to an emergency ladle by the side of the tank if tundish
is overfilled for some reason.
The stream of metal emerging from the nozzle strikes the refractory spray head and forms droplets, which fall
into the granulation tank underneath where the granules are solidified and cooled in the circulating cooling
water.
The granules are discharged from the tank by an air/water ejector up to a vibrating dewatering screen. There
is one discharge pipe with bends in wear resistance material leading to the dewatering screen.
From the dewatering screen the granules passes a vibration feeder onto a belt conveyor to the storage area.
The process cooling water for the granulation unit uses a recirculation system. The water from the dewatering
screen runs to a settling tank equipped with a screw feeder which discharge the fines continuously. The
overflow water of the granulation tank also passes through the hot well from which it is pumped to the cooling
towers.
The system shall be designed in such a way that no fumes shall be released of late from the building.
Confidential
Operating parameter:
Granulation Capacity:
300 t/h
Hot metal temperature:
1350 – 1400 °C
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 7 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
ESSAR STEEL INDIA LTD
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Major components of Hot metal granulation unit

Hot metal ladle tilter

Granulation tundish

Emergency launder

Preheating burner

Spray head

Granulation Tank

Discharge system

Dewatering equipment

Main belt conveyor

Stands, plate work and platforms

Cooling water system

Pumps

Electrical equipment

Instrumentation and control system

Maintenance facilities for granulation units
Water Requirement
The total water requirement is summarized in table.
Units
BOF
3
Raw Water (m /h)
496
3
Domestic water m /h)
6.5
3
During construction phase around 10 m /day of drinking water will be made available for around 500
workers from existing potable water plant.
Power requirement
The total power requirement for the upcoming units is summarized in table below.
Units
Power
requirement
BOF
26.5 MW
Land Requirement
Confidential
Total land requirement for plant is about 9.0 (nine) Ha. The additional land required for setting up
facilities for BOF has been earmarked at different places within the steel complex.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 8 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Employment Generation
The proposed project will provide employment to around 788 persons, including direct employment to
around 488 persons and indirect employment to around 300 people during operational phase.
During construction phase around 500 workers will be deployed at site for around 34 months.
Environment Management
The table below captures all the wastes generated from each unit and suggested remedial measures to
comply with the applicable statutory requirements.
Solid waste
Unit
BOF
Type of wastes
BOF Slag
BOF sludge & Fines
Quantity
517,100 TPA
64,600
Point of
generation
Basic oxygen
furnace
Will be used for land filling
and road construction
Gas cleaning &
dedusting plant
Will be used as input
material in sinter plant
Remedy
Liquid waste
Unit
Type of wastes
Quantity
Basic
Oxygen
Furnace
Industrial Waste water
46 m /hr
Basic
Oxygen
Furnace
Domestic waste water
6.5 m /hr
Point of
generation
Remedy
3
BOF Shop
Will be used in cooling
BOF Slag.
3
BOF Shop
Shall be treated in the
Existing Sewage
treatment plant
Air emission
Confidential
Sr.
No.
Area of installation
Number of
stacks
Stack
height
(m)
Diameter of stack
(m)
Flow rate
3
Nm /h, each
stack
2,70,000
E
BOF
1
Flare stack
3
80
2.6
2
Clean gas stack at fume & dust
extraction system
5
45
9.2
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
14,40,000
Page 9 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Noise pollution
Unit
Point of generation
BOF
Outlet parameters
85 - 90 db from 1.5 m away from source will be
maintained
Rotating equipment
Hazardous waste generation
Description of Hazardous Waste
Quantity
Management & Disposal
Used Oil (kl/yr)
70
Collection, storage, transportation and disposal by
selling to registered recyclers.
Oily waste (t/a)
1
Collection, storage, transportation and disposal to
registered recyclers.
All the wastes generated from various units will be collected and treated according to the nature of the
waste. All the requirements with regard to fuel, flue gas, effluents and other emissions will be
considered at the design / equipment selection stage for all the proposed units.
The environmental standards prescribed for particular units shall be complied during design stage.
Resource optimization/Recycling and reuse
Basic Oxygen Furnace
All the wastes generated from the BOF will be collected and treated according to the nature of the
waste. Flue dust generated in the process will be reused in Sinter plant.
A gas cleaning plant will be provided to clean BOF gas.
Excess BOF gas will be used as substitute for natural gas.
The waste water generated from BOF operations will be reused for BOF slag cooling.
Iron bearing waste material generated from BOF-will be utilized in sinter plant as input
material for sintering.
BOF slag after cooling will be transported offsite for utilisation in land filling and road construction.
Green belt development
Confidential
Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh square
meter area (84 ha). Besides, Green zones are developed within the complex in around 75 ha of area.
Thus total Green cover developed at Essar Complex, Hazira is 159 ha which is 20 % of total area of
complex including township.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 10 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
At the time of environmental appraisal of various ECs of Essar Steel, Hazira, it transpired, in view of
space constraint that Essar has to develop GB keeping in view the entire Essar complex. Thus ESTIL
agreed to develop a green belt in around 22 % of total area of Essar Complex at Hazira. Green Belt
development is a continuous activity and it is going on where the space is cleared after the completion
of project work.
Moreover, we are in the process of carrying out 1000 Ha Mangrove plantations in 10 years time. This
activity was started in the year 2008 in consultation with GEC. Till March 2014, total 700 Ha mangrove
plantations have been completed. Total 17,50,000 samplings have been planted at coastal areas of
Surat and Bharuch district.
PROJECT SCHEDULE AND COST ESTIMATE
The project is scheduled to be completed within 34 months from the starting date i.e. from the date of
receiving all the statutory clearances for starting the project.
Project Cost in Crores
Sr.
No.
Item
A
EPC Cost
1
Engineering
77
2
Procurement
865
3
Construction
541
Total A
1483
B
Owner's Cost
1
Preliminary & Preoperative Expenses
174
2
Contingencies
91
3
Interest During
Construction (IDC)
79
4
Confidential
BOF
Total B
344
Incl. EMS Cost (order of
Investment)
334
Total Project Cost (A+B)
1827
RECOMMENDATIONS
The proposed reconfiguration will help to improve public infrastructure and community welfare and
create number of jobs for the locals during construction and operational phase. Considering all the
financial and social benefits to the local population, it is recommended to reconfigure all the units within
the steel plant premises at notified Hazira Industrial Area, Hazira district, Surat Gujarat.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 11 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
2.
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
INTRODUCTION
Essar Steel India Ltd (ESTIL) owns and operates an integrated well-planned, sophisticated and
environment-friendly steel complex at a distance of 27 km (Surat-Hazira road) from the Surat City in the
State of Gujarat. The Essar steel complex is the largest single-location flat steel producer in India with
an annual production capacity of 10 million tons and supported by a complete infrastructure setup,
including a captive port, power plant, lime plant and oxygen plant. The plant's downstream facilities
include a 1.5 MTPA plate mill, 0.6 MTPA pipe mills and 1.2 MTPA cold rolling complexes. Essar Steel
India Ltd. has the statutory environment clearances issued by Ministry of Environment & Forests, Govt.
of India and ESTIL is a certified ISO: 9001:2000, IS 9002 by TUV company, ISO 140001 as well as
India Chiller Energy Efficiency Project (ICEEP) Protocol compliant. Now the company has decided to
reconfigure the Hazira facility with blast furnace, sinter plant and coke oven plant along with setting up a
new air separation unit within the existing premises, an environmental clearance application for which is
already made.
In addition to install the new blast furnace and associated facilities, ESTIL has decided to reconfigure
the Steel Making Plant -1 of the Hazira facility by replacement of Electric arc furnaces with Basic
oxygen furnaces.
The proposed reconfiguration project, which is within the existing steel plant, located in the industrial
belt at Hazira will be executed by Essar Steel India Ltd (ESTIL).
Ministry has already accorded environmental clearances for the existing integrated steel plant vide letter
number
J-11011/4/92-IA-II (I) Dated. 23.07.1992, J-11011/45/04IA-II(I) Dated 07.11.2005,
J-11011/74III/2006-IA.II(I) Dated 29.05.2008, J-11011/327-I/2006-IA.II(I) Dated 29.05.2008 , 11 – 65/2005-IA-III
Dated.18.09.20006, J – 13011/4/90/2006-IA-II(T) Dated.10.08.2009,J–11011/714–A/2008 – IA.II(I)
Dated.05.07.2010, J-11011/313/2009-IA II (I) dated 28.07.2010, J-11011/74-II/2006 – IA.II(I)
Dated.29.05.2008.
The following units are considered under aforesaid environmental clearances.
Coke Oven: 1.22MTPA
Iron making unit: 1 Blast furnace, 2 Corex Units, 6 DRI modules, 1 sinter plant
Steel Making Unit: 4.6 MTPA liquid steel through EAF and 5 MTPA liquid steel through Conarc along
with Thin and Thick slab casters.
Hot Rolling mills: 3.6 MTPA hot strip mill, 3.5 MTPA compact strip production, Cold rolling mills: 1.2
MTPA CRM, pickling line, cold skin pass mill, continuous galvanizing lines.
Essar is now envisaging following additional facilities as a replacement of DRI steel making to Hot Metal
Steel making at Hazira complex with no increase in the capacity of steel making and downstream
facilities.
Sr. No.
1
Confidential
2.1
Particulars
Basic Oxygen Furnace
Capacity
4.31 MTPA
Identification of the project and project proponent
Essar Group, a diversified multinational conglomerate is having operations and investments in India,
Canada, USA, Africa, the Middle East, and South East Asia with the revenue of more than 39 billion
USD and 73,000 employees. Privately owned and professionally managed, the Essar Group has an
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 12 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
ESSAR STEEL INDIA LTD
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
excellent track record, having succeeded in the capital intensive and competitive manufacturing sectors.
With a focused approach on each business through integration, incorporation of state-of-the-art
technology and innovative in-house research, the Essar Group Companies have become leading
players in each of their businesses.
2.2
Brief description of the nature of the project
All the proposed units of the project are New to be integrated with existing units. It is also proposed to
decommission the existing EAF 1 to 4. Individual units are described in detail in subsequent chapters.
2.3
Need for the project
Availability and cost of natural gas is a major concern for industrial use and hence gas based DRI
production is no more a viable option at present for steel makers. The proposed project is intended to
produce liquid steel through pneumatic steel making route in place of EAF steel making. A new blast
furnace is planned to meet the hot metal requirement of proposed reconfiguration in Steel making plant1 of Essar Steel Hazira facility.
A pneumatic steel making unit of about 4.3 MTPA is proposed by phasing out EAF 1 to 4.
Demand-Supply gap
Output from the proposed process units will be consumed in existing steel making facilities as
replacement of DRI. Since there is no additional saleable finished product envisaged, fresh demand
supply gap has not been explored for the same.
2.4
Employment Generation
The breakup of the category wise manpower for entire project is given in table below:
Category
BOF
Managerial Staff
200
Skilled / Semi Skilled – On Contract
228
Unskilled / Labour – On contract
60
Total Direct employment
488
Indirect Employment
300
Total employment
788
Additionally during construction phase around 500 workers will be deployed at site for
around 34 months.
3.
PROJECT DESCRIPTION
Confidential
Essar Steel India Limited (ESTIL) is planning to set up the following facilities to replace DRI based steel
making with Hot Metal based steel making.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 13 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
3.1
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Type of project and interlinked/ interdependent projects
Basic Oxygen Furnace It is envisaged for replacing DRI based EAF steel making by Hot metal based
BOF steel making.
3.2
Location map
The location of the plant of Essar Steel Hazira is near Surat, Gujarat.
FIGURE 3.1:
LOCATION MAP
Confidential
Refer attachment number 2715-H000-Z00000-0007-0700-0002 for layout showing each unit and its coordinates.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 14 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
3.3
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Details of site considerations
The proposed new facilities shall be housed in the existing Hazira complex. The locations/sites of the
facilities have been identified and indicated in the proposed location of reconfiguration units of steel
complex as per layout no 2175-H000-Z00000-0007-0700-0002 attached as annexure.
3.4
Size/Magnitude of Operation
The basic oxygen furnace (3 nos.) will have capacity of 155 t/heat producing 4.31 MTPA of liquid steel.
3.5
Project description with project details
In proposed reconfiguration a new shop with three (3) Nos. of BOF along with associated facilities are
envisaged in place of 4 Nos. of EAF’s.
Keeping in view of the existing EAF's size, the new basic oxygen furnace (BOF) has been envisaged
with 155 t nominal capacity to utilize common facilities at the maximum extent. The three BOF’s will
operate simultaneously to derive the maximum production potential of BOF. It is proposed to design
the BOF to produce average 32 heats per day per furnace from available hot metal on daily basis.
Features of proposed BOF shop include hot metal, slag & scrap handling system, hot metal
desulphurization unit, hot metal granulation unit, BOF Vessel system, oxygen lance system and BOF
gas cleaning, cooling & recovery system.
In order to improve quality of steel, hot metal shall be pretreated in Hot metal desulphurization unit
(HMDU) before charging into BOF as and when required.
One hot metal granulation unit is proposed to cater the hot metal granulation during unscheduled shut
down of SMP-1 without interfering rated production of blast furnace.
Refer attachment Exhibit- 2 for process flow diagrams for Basic Oxygen Furnace.
The Unit wise project description is as follows
3.5.1
Basic Oxygen Furnace
Basic oxygen furnace about 3 X 155 t heat size is proposed to be installed.
Major design features of BOF
Confidential
The design basis of new basic oxygen furnace is given below.
Description
Liquid Steel production
Units
t/yr
No. of converters
Nos.
Nominal / Maximum heat size intended to process.
Average heats/day/BOF
Operating days/year
Tap to Tap time
t
No.
d/yr.
min
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Values
4,310,000
3 x 155 t
(3/3 operation)
155/160
32-36
290 minimum
40-45 approx.
Page 15 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
Description
Lining life with slag splashing.
Hot metal
Scrap
HBI
Slag rate
Units
No of heats
%
%
%
kg/tls
Values
10,000 approx.
80-90
1-10%
1-10%
120
Consumption of input materials
The typical input material consumption and the annual consumption for production of 4.3 MTPA of liquid
steel, will be as given below.
Annual raw material consumption for 3.5 MTPA Desulphurization unit
Raw materials
Consumption (kg/ton of Hot
Metal)
Passivated magnesium powder
Lime Powder
0.6
5
Consumption (t/yr)
2,586
21,550
Annual raw material consumption for BOF
Raw materials
Hot metal
Scrap
HBI
Flux
Consumption (kg/ton of
liquid steel)
967
72
87
80
Consumption (t/yr)
4,167,125
309,575
373,297
344,740
Fuel, Electrical energy and Utility Consumption
Expected levels of consumptions of fuel electrical energy and utilities for Desulphurization and BOF are
as follows:
Description
Oxygen
Nitrogen
Confidential
Argon
Compressed air
BOF gas
Make up water
Electrical energy
DOC NO:
Specific consumption
(per ton of liquid steel)
3
54 Nm
3
30 Nm
3
1.2 Nm
3
20 Nm
3
2.5 Nm
3
0.8 m
54 Kwh
2715-H000-Z00000-0001-0120-0002 R0
Annual consumption
6
232.7 x 10 t
6
129.3 x 10 kWh
6
3
5.2 x 10 m
6
3
86.2 x 10 m
6
3
10.8 x 10 Nm
6
3
3.4 X 10 m
232.7 Million Kwh
Page 16 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Plant waste, slag and gas generation
Expected levels of generations of plant waste materials, slag and gas are as follows:
Description
Generation per ton of liquid
steel
3
113 Nm
15 kg
120 kg
95 kg
3
0.082 m
BOF gas
BOF Dust and sludge
BOF Slag
Steam
Waste water
Generation per year
3
487 Million Nm
64,600 ton
517,100 ton
409,400 ton
3
353,280 m
Quality of Raw Materials
The typical raw material analysis has been given below in the tables:
- Composition of Hot metal
-
Product
UoM
Range
C
%
3.5 - 4.4
0.4 - 0.5
Si
%
Mn
%
0.4 - 1.0
P
%
0.1 - 0.15
S
%
0.02- 0.04
Composition of Scrap
-
Product
UoM
Fe
%
94
C
%
0.05
Mn
%
1
P
%
0.04
0.05
S
%
Si
%
0.1
Cu
%
0.03 max
Ni
%
0.04 max
Cr
%
0.04 max
Mo
%
0.03
Sn
%
0.015
Composition of HBI
Product Quality
Confidential
Internal
UoM
Range
Total Fe in Product
%
84 – 89
MFe in Product
%
78 - 83.0
Metallization
%
92 - 93.5
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 17 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
UoM
Range
FeO in Product
Product Quality
%
7.78 – 9
Carbon
%
1.5 - 1.90
S
%
0.001 - 0.005
SiO2
%
3–6
Al2O3
%
0.8 - 2.5
CaO
%
1.1 - 1.3
MgO
%
0.22 - 0.24
P
%
0.04 - 0.07
Others
%
0.06-0.08
SiO2+Al2O3
%
Total Gangue
%
5.5 - 9.0
6.5 - 10.5
-
Composition of Flux for BOF
Product quality
UoM
Lime
Dolime
CaO
%
92.0
51.0
MgO
%
2.5
32.0
SiO2
%
0.6
5.0
R2O3
%
2.5
3.0
LOI
%
4.0
6.0
S
%
10 - 50 mm
10 - 50 mm
Size Specification
-
Composition of lime powder for Hot metal desulphurization unit
Product
UoM
Range
CaO
%
92
S
%
0.02
LOI
%
2
Size
%
100 % (> 0.05 to < 1.0 mm)
Natural angle of rest
degree
 45
-
Confidential
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Composition of magnesium powder for Hot metal desulphurization unit
Product
UoM
Range
Active magnesium
%
DOC NO:
Coating
%
≥90
≤10
Size
mm
0.9
2715-H000-Z00000-0001-0120-0002 R0
Page 18 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
Quality of Products of BOF
-
Composition of Liquid Steel
C,%
P, %
Mn, %
O2 ppm
Temp ° C
0.025 - 0.04
0.005 - 0.01
0.01-0.03
500 – 1000
1600-1650
-
-
Composition of Slag
SiO2,%
CaO, %
FeO, %
MgO, %
Basicity
12-14
42-48
18-22
8-12
3.5
Composition of BOF Gas
Parameters
Unit
Value
Volume
Nm³/thm
110-115
Temperature
deg C
60-80
CO
%
60.0 – 67.0
CO2
%
24.0 – 26.0
N2
%
15.0 – 20.0
Calorific value
Kcal/Nm³
1650 – 1800
Basic oxygen furnace facilities
Various units under BOF with major facilities are indicated below.
Each converter shall be equipped with integral bottom with facilities for bottom stirring by inert gas.
Each converter shall be complete with but not limited to vessel shell, trunnion ring, trunnion pins, vessel
suspension, trunnion bearings, vessel pedestals, slag shields, dog house around the converter, tilt drive
system including emergency drive, electrical equipment, instrumentation and control.
Hot metal Handling system:
Hot metal will be delivered to the BOF shop via open charging ladle 155 t. The ladle will be then be
picked up by EOT crane and placed on the transfer cars at Hot metal desulphurization unit if required
for reduction of excess sulphur. After desulphurization hot metal ladle will transfer to BOF for charging
via EOT Cranes.
Scrap handling system:
Scrap and cold pig iron will be loaded in the scrap charging boxes placed on the scrap car positioned
over the scrap weighbridge by the overhead magnet crane in the scrap bay. Scrap boxes will be
brought to the charging bay by the scrap box car. Scrap will be charged into the converters by means of
Confidential
crane.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 19 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Hot metal desulphurization unit:
Hot metal desulphurisation stations have been envisaged to reduce the sulphur level of the hot metal
before charging into BOF. Desulphurisation will be carried out using calcium carbide and Mg containing
agents which are injected into the hot metal with the help of nitrogen gas. Depending upon the
requirement of desulphurisation, cycle time in desulphurisation unit will be 35 to 40 min.
Flux and Ferro alloying addition:
Lime, Calcined Dolomite, Lime stone, Nut Coke etc. will be received in overhead bunkers in the
converter bay from storage silos located outside the BOF shop by a conveyor system. Fluxes will be
charged into the converter from both sides through a system of weigh hoppers, charge holding bunkers
and chutes. Predetermined quantities of ferroalloys from the storage bins will be delivered into steel
ladle through a system of weigh-hoppers and chutes.
Vessel shell
The vessel shell shall comprise a conical top with lipring segment, a cylindrical centre and a conical
lower section and dished bottom section made of non-aging steel. The tap hole socket shall be welded
on the conical top section. The tap hole cover shall be fixed to the flange of tap hole socket by pins &
wedges.
Convertor tilt drive with emergency tilting device
The tilting of each converter shall be accomplished by four (4) drive system. The rotation of the
converter shall be 3600 on either direction and the speed of rotation shall be variable between 0.1 rpm
to 1.0 rpm or more. The capacity of the tilt drive system shall be sufficient to tilt the converter at 1.0 rpm
minimum under all operating conditions with all the motors in service.
The tilting gear drive have complete with base frame, couplings, bearings, reduction gear, lubrication
system, brakes etc. In case of power failure, the brakes shall set and hold the converter in position at
which power failure occurred. Emergency release system included for the brakes as a safety device for
bringing the converter to the upright position in the event of power failure. The converter is balanced in
such a way that under all conditions the converter shall come back to the upright position by gravity.
The drive are backlash free and easy maintainable.
Slag Handling system
The slag will be poured out from BOF converter into slag pots placed on self-propelled transfer cars and
transported to the slag yard. Hot slag will be dumped into the pits and allowed to cool. Cold slag from
the pit will be removed for further processing for recovery of scrap. The job of processing of cold slag
for recovery of scrap will be carried out by an outside agency.
Oxygen lance system with slag splashing device
Each converter shall be provided with an independent oxygen lance system to meet the following
Confidential
operational requirement.
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 20 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
-
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Supply of oxygen at the rate and pressure required for blowing the heat in 14-16 minutes.
Oxygen flow rate of about 600 Nm3/min has been envisaged.
-
Quick exchange of the operating lance with the stand by lance in case of failure of the operating
lance.
-
Quick installation/dismantling of lance into/from the lance carriage
-
Use of blowing lance for preheating the newly relined converter and for slag splashing the
converter as and when required.
Each converter shall be provided with an independent oxygen lance system with two identical water
cooled multi hole oxygen lances. The lances shall remain mounted in position ready for operation with
the oxygen and water hoses connected. Each lance system shall include but not limited to the following:
-
Lance carriage with guide frames
-
Lance hoist including rope drive
-
Lance carrier
-
Four (4) oxygen lances
-
Two (2) oxygen hoses and four (4) water hoses
-
Valve stations and pipework.
-
Closed circuit pressurised lance-cooling system with heat exchanger
-
Emergency lance lifting
Lance Deskulling and Retipping Facility
In the lance cleaning stand the slag and metal skull can be removed from O2 lances. Slag and metal
skulls are falling into container which is placed below the cleaning stand on the floor. Spare lances are
suspended in the lance station.
Transport of damaged / new lances between lance installation and lance station will be by crane.
Bottom stirring system
The bottom stirring system consists of a set of porous plugs, hoses amd pipe work from the porous
plugs to the trunnion ring and through the trunnion drive and trunnion pin, valve station , control
instruments and auxiliary equipment. Through the porous plugs, nitrogen or argon can be blown in at
the bottom of the vessel.
Measurement system (Laboratory equipment)
During every production stage in steel refining it is important to control the oxygen & other content of
liquid steel and temperature of liquid steel. Therefore measurement during the process and at the end is
necessary.
Liquid steel handling equipment
Liquid steel handling starting from tapping the heat from the converter into steel teeming ladle placed on
Confidential
transfer car. The steel transfer car track shall start from converter charging aisle and shall terminate in
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
Page 21 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
the ladle distribution aisle. The track from converter charging aisle shall be extended upto slag aisle for
transportation of slag pot. The wheel centres of the steel transfer cars and the slag transfer cars shall
be identical enabling transportation of both the cars on the same track.
Waste gas cooling system
The BOF waste gas cleaning system is designed as a dry type cleaning system for high efficient
cleaning and further cooling of the BOF gas. The system is designed for subsequent convertor gas
recovery. This type of cleaning system is a technical solution to comply with today’s most stringent
environment requirements.
The gas cleaning system is only in operation with the full capacity during blowing time. After passing
through the cooling stack within that the gas temperature is reduced, the BOF gas enters the adjacent
gas conditioning tower with a temperature of max 1000° C. The gas is heavily laden with dust particles
from the convertor process, mainly with iron, iron oxide but also other particles from slag, flux charges
and hot metal. The range of particles sizes vary form approx. 0.1 micron up to some millimetres.
In the GCT connected gas tight via a special designed high temperature compensator, the BOF gas is
being cooled and conditioned by evaporation of injected water. Coarse dust particles are separated in
dry state and transported to coarse dust silo. The conditioned BOF gas exists the GCT at about 200° C.
By means of horizontal dry type electrostatic precipitator the remaining fire dust load is further reduced
to the requested clean gas dust content. The dust is also collected in dry state and transported to the
fine dust silo. The gas is transported through the gas cleaning system by means of an induced draft fan.
Depending on the actual CO content a switch over station will direct the gas either to the flare stack or
with sufficient CO content to the gas holder.
A subsequent gas cooler installed in the gas dust to the Gas holder further down the BOF gas to
temperatures in the range of 60-70° C appropriate for the gas holder operation. The gas will then be
fully saturated.
The system is capable of reducing the dust content of the clean gas down to ≤ 10 mg/Nm3 (Dry).
Gas recovery station (Change over station)
For switching over the gas from flare stack operation to gas recovery operation and vice versa, a switch
over station is used. This gas switch over station mainly consists of two bell shaped valves which are
adjusted hydraulically and separately from each other. By means of this station the system can be
switched over without any pressure surge. The signal for switching over the system is given by PLC
based on interlocks and process variables. The signal for switching over the system is given by the CO
and O2-analysis.
Secondary emission control system
The secondary fume collection system will be designed to collect the fumes from the following emission
Confidential
sources.
DOC NO:
Desulphurization station
2715-H000-Z00000-0001-0120-0002 R0
Page 22 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
-
Convertor charging, blowing (secondary fumes only) and tapping
-
Flux and alloy charging system at BOF convertors
-
Ladle furnaces
The fumes are collected in specially designed hoods, arranged as close as possible at the emission
source. In the suction ducts of each hood there are motor operated damper installed for appropriate
on/off operation and intermediate positions.
The fumes are the n guided to a gas mixer where the gases are homogeneously mixed and
subsequently to a bag filter system where the dusty gas get filtered and released to the atmosphere by
self-supported chimney at a certain height at 20 mg/Nm3.
Cranes and hoists
The plant shall be provided with adequate cranes and hoists for easy maintenance of plant and
equipment.
Hot metal desulphurization unit
Operating and design features
Hot metal desulphurization unit having twin stations system has been envisaged to reduce the sulphur
level of the hot metal before charging into furnace. Each station is having separate injection system,
ladle transfer car, deslagging equipment & other facilities. Only the material storage facilities is common
for the both the station. Desulphurization will be carried out using lime and Magnesium (Mg) containing
agents injected into the hot metal with the help of nitrogen gas as a carrier gas. Depending upon the
requirement of desulphurization, cycle time in desulphurization unit will be 35 to 40 min.
After desulphurization, the slag will be raked off with the help of slag raking machine and slag will be
dumped in to slag pot.
Hot metal ladles before & after treatment will be handled by EOT cranes.
The board technical data parameter for Desulphurization unit as below.
Sl.
no.
1.
Confidential
2.
parameter
Nominal Heat weight
No. of stations
Unit
Value/features
t
155
No
2
3.
Injection Lance system (Co-injection)
Set
4.
5.
6.
7.
8.
Treatment cycle per heat
Agent for desulphurisation
Minimum free board in ladle
Injection media
Temperature of HM at BF tapping
min.
mm
C
DOC NO:
2715-H000-Z00000-0001-0120-0002 R0
2 Independent lance –
(One working & one
stand by)
35-40
Mg & lime
400
Nitrogen gas
1400-1450
Page 23 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
Sl.
no.
9.
10.
11.
10.
12.
13.
14.
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
parameter
Temperature at DS
Temperature drop of HM after DS Unit
including deslagging
S-level before treatment
S-level after treatment
Treatment Capacity
Operation Days
Capacity of Unit
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Unit
Value/features
C
1350-1400
C
Max. 30
%
%
Ladles/day
Days
MTPA
0.05-0.07
≤ 0.005
36
320
3.5
Major components of Hot Metal Desulphurization unit

Conveying system of Materials

Storage tank

Dispensers

Lance and Lance hoisting Device

Ladle Transfer Car

Slag Pot Transfer Car

De-slagging equipment

Dust collecting equipment

Temperature measuring and Sampling device

Lance maintenance area

Electrical and Instrumentation facility

Level II automation
Hot metal granulation unit
Operating and design features
The granulation unit is designed for granulation of large batches of crude iron at a rated capacity of 5t/minute.
Minimum metal temperature shall be 100°C above liquidus temperature.
The hot metal is transferred in ordinary transfer ladle to the granulation plant by overhead crane. The metal is
poured over the lip of the ladle into a tundish. The tundish is placed on a stand which is kept on top of the
granulation tank.
The granulation rate is mainly controlled by nozzle diameter and ferrostatic pressure of the tundish. The metal
level is controlled by a laser-measuring device placed on a stand above the tundish. The signal from the laser
measurement is used to control the auxiliary hook speed of the overhead crane.
An emergency overflow launder will lead the hot metal to an emergency ladle by the side of the tank if tundish
Confidential
is overfilled for some reason.
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PRE-FEASIBILITY REPORT OF
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(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
The stream of metal emerging from the nozzle strikes the refractory spray head and forms droplets, which fall
into the granulation tank underneath where the granules are solidified and cooled in the circulating cooling
water.
The granules are discharged from the tank by an air/water ejector up to a vibrating dewatering screen. There
is one discharge pipe with bends in wear resistance material leading to the dewatering screen.
From the dewatering screen the granules passes a vibration feeder onto a belt conveyor to the storage area.
The process cooling water for the granulation unit uses a recirculation system. The water from the dewatering
screen runs to a settling tank equipped with a screw feeder which discharge the fines continuously. The
overflow water of the granulation tank also passes through the hot well from which it is pumped to the cooling
towers.
The system shall be designed in such a way that no fumes shall be released of late from the building.
Operating parameter:
Granulation Capacity:
300 t/h
Hot metal temperature:
1350 – 1400 °C
Major components of Hot metal granulation unit

Hot metal ladle tilter

Granulation tundish

Emergency launder

Preheating burner

Spray head

Granulation Tank

Discharge system

Dewatering equipment

Main belt conveyor

Stands, plate work and platforms

Cooling water system

Pumps

Electrical equipment

Instrumentation and control system

Maintenance facilities for granulation units
3.6
Raw materials and linkages
Confidential
Refer section 3.5.
DOC NO:
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Resource optimization/Recycling and reuse
Basic Oxygen Furnace
All the wastes generated from the BOF will be collected and treated according to the nature of the
waste. Flue dust generated in the process will be reused in Sinter plant.
A gas cleaning plant will be provided to clean BOF gas.
Excess BOF gas will be used as substitute for natural gas.
The waste water generated from BOF operations will be reused for BOF slag cooling.
Iron bearing waste material generated from BOF-will be utilized in sinter plant as input
material for sintering.
BOF slag after cooling will be transported offsite for utilisation in land filling and road construction.
3.7
Availability of water, its source, energy/power requirement and source
Source of water
Water is proposed to be sourced from Tapi River (Variao Pipe line). Water will be drawn to a raw water
reservoir located in the plant area.
Industrial quality make-up water at requisite pressure shall be made available at the battery limit for
tapping of industrial water to the respective units. Firefighting water at requisite flow and pressure as
per TAC norms shall be made available at the battery limit for tapping of fire water to the respective
unit’s fire water network.
Drinking water requirement will be met from existing drinking water plant.
Requirement of water
The total water requirement for all upcoming units is summarized in table.
BOF
Units
3
Raw Water (m /h)
496
3
Domestic water m /h)
6.5
3
During construction phase around 10 m /day of drinking water will be made available for around 500
workers from existing potable water plant.
Power Requirement
Confidential
Unit wise power requirement is as per table below.
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
ESSAR STEEL INDIA LTD
Units
Power
requirement
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
BOF
26.5 MW
The power required for the proposed project will be made available through existing MRSS # 1
3.8
Quantity of waste generation and scheme for management/disposal
Basic Oxygen Furnace
Expected levels of generations of plant waste materials, slag and gas are as follows:
Description
BOF gas
BOF Dust and sludge
BOF Slag rate
Steam
Waste water
Generation per ton of liquid
steel
3
113 Nm
15 kg
120 kg
95 kg
3
0.082 m
Generation per year
3
487 Million Nm
64,600 ton
517,100 ton
409,400 ton
3
353,280 m
All the wastes generated from the BOF will be collected and treated according to the nature of the
waste. Flue dust generated in the process will be reused in Sinter plant.
A gas cleaning plant will be provided to clean BOF gas.
Excess BOF gas will be used as substitute for natural gas.
The waste water generated from BOF operations will be reused for BOF slag cooling.
Iron bearing waste material generated from BOF-will be utilized in sinter plant as input
material for sintering.
BOF slag after cooling will be transported offsite for utilisation in land filling and road construction.
Hazardous Wastes Generation and Management
Hazardous Wastes are mainly Waste Residue Containing Oil (including oil rags), spent oil & lubricants
generated from various process equipment, machines, vehicles, instruments, oil storage tanks etc.
Inventorization of the Hazardous Waste shall be as per Hazardous Waste (M,H&TM) Rules,
2008.Quantity of hazardous waste generated from all the units are mentioned in below table.
Confidential
Management & Disposal
Hazardous waste used oil will be collected and stored in barrels or drums and later handed over to
Gujarat State Pollution Control Board (GPCB) authorized re-processors. The oily waste generated from
the units will be collected and stored for later disposal in scientific manner as per the norms of the
Gujarat State Pollution Control Board.
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
S. Description of Hazardous
No.
Waste
Quantity
1.
Used Oil (kl/yr)
70
2.
Oily waste (t/a)
1
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Management & Disposal
Collection, storage, transportation and disposal by
selling to registered re processor
Collection, storage, transportation and disposal to
registered re processor
Sanitary waste water Generation and Management:
Considering all permanent and contractual staff working in the units, it is expected to generate around
3
156 m /day of sanitary waste which shall be treated in the existing sewage treatment plant. The treated
sewer at desired quality standard shall be used for horticulture purpose within the plant. The sludge
from the treatment plant after drying and composting will be used as manure for vegetation.
3.9
Information of EIA purpose
Essar Steel complex is having statutory clearances for all the existing units from different governing
bodies, along with the necessary environment clearances from Ministry of Environment & Forests, Govt.
of India. Now the company has decided replace DRI Steel making with Hot metal steel making by
installation of 1.35 MTPA Coke Oven Plant, Blast Furnace to produce additional 3.0 MTPA hot metal,
Sinter Plant 2 & 3 viz. 1.5 MTPA and 5.5 MTPA respectively, and ASU of 2,200 t/d for which an
environmental clearance application is already made.
The proposed reconfiguration is for 4.31 MTPA Steel Making by BOF with replacement of EAF within
the steel complex at notified Hazira Industrial Area, Hazira district, Surat Gujarat.
The EIA Notification, 2006 stipulates that the required construction of new projects or activities or the
expansion or modernization of existing projects or activities listed in the Schedule to the notification
entailing capacity addition with change in process and or technology shall be undertaken in any part of
India only after the prior environmental clearance from the Central Government or as the case may be,
by the State Level Environment Impact Assessment Authority, in accordance with the procedure
specified in the notification.
As per said notification, proposed reconfiguration also requires prior environmental clearance from
Ministry of Environment and Forests, Govt. of India, before starting construction, production or any
other allied activities. Further, it is essential to conduct an Environment Impact Assessment Study to
identify the impact of proposed reconfiguration on surroundings. The company will appoint a QCI
(NABET) accredited consultant to conduct the EIA study.
Confidential
The respective drawings are enclosed as an annexure with this report which provides the information of
EIA purpose.
4.
SITE ANALYSIS
4.1
Connectivity
The existing steel plant is situated in the west coast of India at a distance of 27 km from the Surat City
in the State of Gujarat. The Essar steel complex is well connected by rail, road and sea (around 145
DOC NO:
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
nautical miles north of Mumbai). Hazira village is the nearest habitation situated adjacent to the plant
boundary. Surat Railway Station is major rail network junction located at a distance of around 33 km
and Surat Airport is located at a distance of around 9 km in the north east direction.
The proposed reconfiguration sites are well connected by four lanes wide National Highway No.6
[Maharashtra Border- Surat –Hazira – Kolkata] at a distance of around 0.5 km. Ichhapur is situated at
about 17km from Hazira where important State Highway Ichhapur–Jahangirpura–Surat–Olpad merges
with NH. The traffic from West/North and East/Central/South bifurcates/merges at Ichhapore junction.
4.2
Land form, land use and land ownership
The total land required for proposed facilities of BOF will be around 9.0(nine) Ha. The additional land
required has been earmarked at within the steel complex. The land terrain of the proposed sites is flat.
The area falls under the notified Industrial Estate.
4.3
Topography
The steel complex is located in Hazira area and surrounded by Tapi estuary towards North East and the
Arabian Sea in South West - North West. The identified land for proposed reconfiguration is fairly plain
with no trees/shrubs. Some stacks of materials are existing at the site.
Topography of the surrounding area is set amidst brackish marshy area engulfed with the backwaters of
the Arabian Sea. Tapi estuary and Hazira peninsula forms part of the region. Hazira peninsula consists
of four islands of Hazira, Junagam, Suwali and Mora, which are surrounded by extensive mud flats. The
barren lands in the area were backfilled with dredging sand and have now transformed into major
industrial hubs. The area is home to major industrial and shipping facilities such as Essar Group of
Industries, Adani, Kribhco, Shell, Larsen & Toubro and Reliance. Villages such as Hazira, Gundardi,
Junagam, Mora, Kawas, Dumas and Suwali are the major settlements around the steel complex.
4.4
Existing land use pattern
The existing land use pattern of the site is industrial (Hazira Notified Area) which is located at Hazira.
The area is characterized by marshy lands and water bodies like River. The surrounding area is defined
as follows;
Reserve Forest:
Dumas RF, around 7 km, West side of the project
Water bodies:
Gulf of Khambhat, 3 km, SW-NW and
Tapi River, 0.5 km, NE
The Tapi estuary is an important interface between the fresh water-fed ecosystems of southern Gujarat
and the saline-water-fed ecosystems of the Gulf of Khambhat. The beaches at Suwali and Dumas are
representative of the mud-mixed-sand beaches typical to this part of India’s west-coast. The Suwali
beach, in particular, has a fairly undisturbed topography, complete with small runnels, rocky patches,
tidal pools and a wide upper beach ending in fixed dunes, all of which continue to support a good
proportion of their characteristic flora and fauna.
Confidential
There is no national park, wildlife sanctuary, archeological monuments and defense installation near the
project site.
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
4.5
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Existing infrastructure
Essar steel plant is having all the necessary infrastructure facilities within the premises and the same
will also be utilized during project reconfiguration.
A residential colony (Nand Niketan Township) along with medical care facility (Care Nursing Home) and
school is offered to cater the needs of plant personnel and their families. The port terminal facility owns
and operates by Essar Bulk Terminal Limited (EBTL) is to meet the requirement of raw materials import
and export of finished products. Multiple stock yard area is present near the berth for storage of coke
and coal. A finished material storage godown is also available in the premises. The steel plant complex
is well equipped with the 20, 10 & 7 meters wide internal roads which are connected with the main
Surat- Hazira road. The necessary supporting infrastructure like effluent treatment plant, sewerage
treatment plant, drinking water & industrial makeup water facility and HT power transmission line are
also available within the steel complex.
4.6
Soil classification
As per the soil report available with ESTIL, sub soil at the site mainly consists of silty sand deposits with
intermittent patches of expansive plastic clay deposit. The compactness of the silty sand deposit
gradually increases with depth. Below the top 2m loose silty sand, a medium stiff expansive, cohesive
deposit has been observed up to 4m depth. This is followed by medium dense silty send deposits up to
19.5m depth. Again a seam of expansive, highly plastic cohesive deposit has been observed below this
up to 21m depth, followed by very dense gravelly sand continued up to the maximum of depth of
exploration of 24m.
4.7
Climatic data
The meteorological data of nearest IMD station Surat are available to understand the prevailing
meteorological conditions. The interpretation of meteorological data is as follows;
Temperature: The month of January is the coldest month of the year with mean maximum and
0
0
minimum temperatures as 31.5 C and 14.3 C respectively. Likewise April is the hottest month of the
0
0
year with maximum and minimum temperatures as 37.7 C and 23.7 C respectively. The month wise
temperature variations in the project area district are given in Table 4.1.
Rainfall: The south-west monsoon normally enters into the state in the first week of June and prevails
till last week of September. The average annual rainfall in the study area district is 1209.4 mm. Majority
of rainfall (85%) is received under the influence of south-west monsoons during June to September.
January and February are generally the driest month of the year. The rainfall as received in various
months of the year in the project area district is shown in Table 4.1.
Humidity: The relative humidity was observed to be high during the monsoon months from June to
September. The relative humidity was lower in other months of the year, with the lowest being recorded
in the months of November to January.
Confidential
Winds: The annual average wind speed ranged between 1 and 19 km/h with predominant wind in
the SW direction during March-October and NE in November-February, and (iv) the relative
humidity in the region varied from 32.8% (March) to 86.6% (August). The annual wind rose of Surat
is included as Figure 4.2.
The average meteorological condition in the project area district is shown in Table 4.1.
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Table 4.1Average Meteorological Conditions of the Project Area District
0
Mean Temp Daily ( C)
Relative Humidity (%)
Max.
Min.
Rainfall
(mm)
January
31.5
14.3
0.0
0.0
65
39
February
33.5
16.1
0.4
0.0
62
33
March
36.2
20.1
1.5
0.2
64
32
April
37.7
23.7
0.3
0.0
66
38
May
36.4
26.4
7.3
0.3
68
55
June
33.8
26.6
249.3
8.0
79
70
July
31.0
25.4
417.7
15.4
88
79
August
30.6
25.0
299.4
13.2
89
79
September
32.2
24.4
190.7
7.6
86
70
October
35.9
32.0
27.2
1.2
72
49
November
35.3
19.3
13.0
0.8
61
43
December
32.9
16.1
2.6
0.1
65
43
Month
Total
1209.4
No. of Rainy
Days
8:30 hrs.
17:30 hrs.
46.8
Source: Indian Meteorological Department (IMD)
Confidential
FIGURE 4.2:
ANNUAL WIND ROSE OF SURAT
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PRE-FEASIBILITY REPORT OF
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4.8
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Social infrastructure available
Hazira area houses major industrial and shipping facilities having vast number of migrant population
(within and outside the state) residing in the area. The major settlements near the steel plant are well
developed with respect to the social infrastructures.
The Essar group itself is continuously working towards improvement in the living conditions of local
population in the surrounding areas. Essar steel India ltd. has created the good social infrastructure like
Hospital, School, Community Hall, Bank, Post office, Market, Temple and Sports Stadium etc. within the
existing steel complex.
The social infrastructures available within the region with respect to education, medical facility, drinking
water supply, Post and Telegraph, transportation, approach roads, bank and recreational source are
described as follows;
Education: the area is having good educational facility in the form of primary and secondary schools.
The college level educational facility is present in Dumas village.
Medical Facility: Inhabitants are availing health facility in different forms. Nearby villages are having
Primary Health Sub-center, Maternity & Child Welfare and Family Welfare Centers. Allopathic hospitals
and dispensaries are also available in Hazira village. The Maternity home, Health Center and Primary
Health Center (PHC) are operating actively in Suvali and Dumas village.
Drinking Water Supply & Sanitation: Mode of drinking water supply in the nearby villages is mainly
through tap, open dug wells, OHSR with Public Stand Posts (PSPs) and tank. Essar is also constructing
3
a water pipeline to carry 0.7 million m of drinking water every day to the villages near Hazira. The
levels of sanitation facilities prevailing in most of the region is satisfactory good. The natural
environment of the region is pleasant because of the closeness to sea and greenery around.
Transportation and Communication: Post office and telephone connection are the communication
facilities available in the area. Approach roads are mainly paved. Government bus service and private
owned vehicles are mainly used for traveling.
Power Supply, Bank & Recreational: Power supply is available in all the nearby area for all purposes.
The surrounding area is also having formal financial institutions like Banks and recreational facilities like
Sport Club, Cinema / Video Halls etc.
Confidential
The vegetable market used to open in the Mora village on every Sunday as a weekly market which is
located centrally. Panchayat houses available in the region are well maintained and equipped with
necessary information. In most of the Panchayat houses records are made available by Talati. In all the
Panchayat house’s Talatis are having defined days when they make records and information available
to the localities. Most of the social infrastructures are in good condition and functioning well.
5.
PLANNING BRIEF
5.1
Planning Concept
The existing portfolio of Hazira area includes industrial activities such as petrochemicals, fertilizers,
heavy engineering, steel, energy and port related activities. The area is declared as a notified industrial
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PRE-FEASIBILITY REPORT OF
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BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
estate and known as the industrial hub of India. More than 20 large and medium sized companies are
located in Hazira area including Essar, Larsen & Toubro, Reliance, Kribhco, NTPC, Adani, Shell, BPCL,
Cairn Energy, ONGC, GAIL, Gujarat State Petroleum Corporation, Hindustan Petroleum, and UltraTech Cement among others.
The port facilities in the area are well connected with railway and roads. The Hazira Port has close
proximity to the high speed dual carriageway and well connected with main Mumbai – Ahmedabad Delhi broad gauge railway line. Moreover the companies like Essar, RIL, L&T, KRIBHCO, and Gujarat
Ambuja Cement Limited. etc., located at the mouth of Tapi estuary are having captive jetties for import
and export of their products.
Presently Essar Steel India Ltd. is running an integrated steel manufacturing plant along with
comprehensive infrastructure set up in the notified Hazira Industrial Area. The rail and roads are well
developed/strengthened in the region for transportation of raw materials and product. The basic
infrastructure facilities are also well established.
Now Essar Steel is planning to replace DRI based steel making with Hot metal by installing a Blast
Furnace, Sinter Plants, Coke Oven Plant and air separation unit within the existing complex, for which
an environmental clearance application is already made.
The proposed reconfiguration of Steel Making Plant-1 will take care of all the rules and regulations of
statutory authorities and provide the control measures and adequate pollution control equipment’s to
achieve the standard norms. Further proposed reconfiguration activities will only be started after getting
statutory clearance form related authorities.
5.2
Population Projection
The proposed reconfiguration will provide direct and indirect employment to around 2,281 people. The
semiskilled/unskilled personnel available in the nearby areas will be employed during construction and
operation phase and skilled personnel will be called from outside the area. The nearby area has sound
infrastructure resources with reference to housing facility, education, medical facility, drinking water
supply, Post and Telegraph, transportation, approach roads, and bank facilities to cater the additional
population of workers. In addition to that existing Nand Niketan Township will also cater the residential
needs of the permanent personnel’s and their families. It is expected that the population in the nearby
area will be slightly increased.
5.3
Land Use planning (break up along with green belt, etc)
The proposed plant is located at Hazira village in Gujarat. It is about 27 km from Surat railway station.
Confidential
Total land requirement proposed facility of BOF is about 9.0(nine) Ha. The additional land required for
setting up all the units has been earmarked at different places within the steel complex.
Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh square
meter area (84 ha). Besides, Green zones developed within the complex in around 75 ha of area. Thus
total Green cover developed at Essar Complex, Hazira is 159ha which is about 20 % of the total area of
complex including township.
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PRE-FEASIBILITY REPORT OF
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(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
5.4
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Assessment of Infrastructure Demand (Physical and social)
The proposed reconfiguration is planned within the existing steel plant premises where sound physical
and social infrastructure like well-maintained Township, Green parks, Hospital, School, Community Hall,
Bank, Post office, Market, Temple and Sports Stadium, transportation, cafeteria’s, approach roads,
effluent treatment plant, sewage treatment plant, water treatment plant are available. In addition to the
existing infrastructure, internal roads network, sanitation facility and effluent treatment plant are
envisaged for the proposed reconfiguration.
5.5
Amenities/facilities
The steel plant complex is having adequate amenities/facilities as briefed in Para 5.4. Apart from that
no additional amenities/facilities are planned.
6.
PROPOSED INFRASTRUCTURE
6.1
Industrial area
The industrial area will comprise the major technological facilities as described in section 5.1
6.2
Residential area
The proposed reconfiguration is a part of Essar steel complex and already having a well maintained
residential colony (Nand Niketan Township). This existing township will efficiently cater the additional
requirement of residential area for plant personnel and their families. Consequently no additional
residential (non-processing area) is planned for proposed reconfiguration.
6.3
Green belt
Around 6 lakh trees have been planted throughout the ESSAR complex occupying 8.40 lakh square
meter area (84 ha). Besides, Green zones are developed within the complex in around 75 ha of area.
Thus total Green cover developed at Essar Complex, Hazira is 159ha which is 20 % of total area of
complex including township.
At the time of environmental appraisal of various ECs of Essar Steel, Hazira, it transpired, in view of
space constraint that Essar has to develop GB keeping in view the entire Essar complex. Thus ESTIL
agreed to develop a green belt in around 22 % of total area of Essar Complex at Hazira. Green Belt
development is a continuous activity and it is going on where the space is cleared after the completion
of project work.
Confidential
Moreover, we are in a process of carrying out 1000 Ha Mangrove plantations within 10 years. This
activity was started in the year 2008 in consultation with GEC. Till March 2014, total 700 Ha mangrove
plantations have been completed. Total 17,50,000 saplings have been planted at coastal areas of Surat
and Bharuch district.
DOC NO:
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PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
6.4
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Social infrastructure
Essar Steel India Ltd. is committed to develop the neighbouring areas through implementing corporate
social responsibility of the organization. The company has developed the infrastructures like water
pipelines, schools, roads, playgrounds, water storage tank etc. in neighbouring areas. Additionally the
company is maintaining lush green gardens, school, community hall, bank, post office, market, temple,
sports stadium, transportation facility, cafeterias, medical care facility, extensive road network etc.
within the existing steel plant complex. No additional social infrastructure is planned during for proposed
reconfiguration.
6.5
Connectivity
All the units in existing steel plant are well connected with each other via network of 20, 10 and 7 meter
wide internal roads. The main internal roads are well connected with the national highway passes
through the complex as well as the Essar port facility. This internal road network will be expand and
adjoined with all the reconfiguration sites.
6.6
Drinking water management
3
The drinking water requirement is around 156 m /day, which will be sourced from existing mineral water
plant located within the plant premises.
3
Additionally during construction phase around 10m /day of drinking water will be made available for
around 500 workers from existing mineral water plant.
6.7
Sewerage system
Considering the all the permanent and contractual staff working in the units, it is expected to generate
3
around 156 m /day of sanitary waste which shall be treated in an existing sewage treatment plant. The
treated sewer at desired quality standard shall be used for horticulture purpose within the plant. The
sludge from the treatment plant after drying will be used as manure for vegetation.
6.8
Industrial & solid waste management
Refer section 3.9.
6.9
Power requirement & Source
Refer section 3.8
7.
PROJECT SCHEDULE AND COST ESTIMATES
7.1
Project Schedule
The project will start after getting all the environmental clearances. The entire project is expected to be
commissioned within 34 months, starting from zero date. Unit wise schedule is as per below table.
Confidential
The EPC breakup of the schedule is as below.
DOC NO:
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Page 35 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
ESSAR STEEL INDIA LTD
FACILITY OF ESSAR STEEL INDIA LTD
IMPLEMENTATION SCHEDULE (EPC break up)
Schedule in months
Units
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
BOF
Engineering
Procurement
Construction
Commissioning
7.2
CAPITAL COST ESTIMATE
The snapshot of capital cost estimate for the proposed project of Essar Steel India Ltd. (EStIL), Hazira
Facility is given as below:
SUMMARY CAPEX ESTIMATE
Unit: ` Crores
Base: First Quarter 2014
Basis of estimate
The costs have been
st
prices prevailing during 1
include any provision for
during
implementation
Sr.
No.
A
EPC Cost
1
Engineering
77
2
Procurement
865
3
Construction
541
Total A
1483
Item
BOF
B
Owner's Cost
1
Preliminary & Preoperative Expenses
174
2
Contingencies
91
3
Interest During
Construction (IDC)
79
4
Total B
344
Total Project Cost (A+B)
1827
Incl. EMS Cost (Order of
The cost estimates are
Investment)
in-house information and
projects after suitable adjustment to reflect current prices.
334
worked out on the basis of
Quarter 2014 and do not
future escalation in costs
period.
generally based on available
costs extracted from similar
100% new equipment has been envisaged for procurement and use in the project. No second hand and
revamped equipment is envisaged while estimating the project cost.
Engineering
Confidential
Provision has been made in the estimate towards engineering services comprising mainly of preparation of
project reports and technical specifications, detailed engineering, and support services during project
implementation stage.
DOC NO:
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Page 36 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
Procurement
The main technological units envisaged are placed at the beginning of the chapter. The basic cost estimate
for these units is based on budgetary quotations wherever available and in other cases, the cost is based on
in-house data available for similar equipment installed in other projects.
The procurement inter-alia includes plant and machinery, technological structure and 1-year requirement of
operational and maintenance spares.
Adequate provision has also been made in the estimate to account for ocean freight and marine insurance
port handling and clearance charges and inland transportation, transit insurance and handling at site.
Construction
The civil and structural cost has been worked out on the basis of design of facilities and rates for civil works
as applicable in the region. The facilities included in the estimates are factory buildings including main and
auxiliary services, non-factory buildings, miscellaneous civil works etc.
The estimate includes foundation and installation charges both for imported as well as indigenous plant and
equipment. The activity involves setting up, assembling, placing in position, and connecting or otherwise
makes plant ready for use.
Land
The project is a brownfield project and land already exists for reconfiguration.
Site development
The site is fairly developed and hence no provision has been kept towards site development.
Duties & Taxes
Adequate provision has been made in the estimate towards applicable statutory duties and taxes on supplies
and services envisaged for the reconfiguration program.
Pre-operative expenses
The preoperative expenses inter-alia includes upfront fee, debt syndication, LC Charges, TEFR appraisal
charges, start-up expenses, insurance during construction, salaries and wages and overheads during
implementation, etc.
Contingencies
Contingencies at the rate of 10% of the capital costs have been provided to cover unforeseen aspects of the
estimate.
Interest during Construction (IDC)
Confidential
It has been assumed that the project would be financed in the D: E ratio of 65%:35%. While drawing the
funds based on phasing of expenditure, it has been assumed that both debt and equity shall be drawn
DOC NO:
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Page 37 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
simultaneously. Interest on loan capital has been considered at the rate of 12.5%. Interest during construction
(IDC) has been worked out based on implementation schedules given at the end of the chapter, interest rate
on long-term debt and withdrawal pattern of fund.
Exchange rates
The capital cost estimate has been made considering following exchange rates, wherever applicable and as
prevailing on 19th April 14.
1 USD
=
` 60.2035
Exclusion
The cost estimate does not provide for following:
1.
2.
3.
4.
8.
Any future escalation in prices
Any currency fluctuations in future
Any changes in rate of duties & taxes
External Infrastructures
ANALYSIS OF PROPOSAL
Essar group is a large player in the sectors ranging from Steel to Energy (Oil & Gas, Power), Infrastructure
(Ports & Projects) and Services (Shipping, BPO, Telecom and Realty) and making noteworthy contribution in
Indian economy. The proposed reconfiguration is linked with the existing Essar steel plant which will help the
company to reach at its full potential, thereby benefitted Indian and state economy as a whole and the
nearby community.
Confidential
The extensive ranges of steel products are produced in the existing steel plant which is consumed in various
sectors of Indian economy and contributing in direct and indirect taxes such as domestic sales taxes, capital
goods taxes, value added taxes (VAT) and employee income taxes etc. The proposed reconfiguration will
also add up in a similar manner and provide additional direct & indirect employment and business
opportunities to the communities which would finally result in improvement in the quality of life of people in
the nearby areas. Similarly railways, industrial authorities, water supply agencies etc. will also get benefitted
indirectly.
The company is committed to adopt superior and proven process technologies that prevent emissions and
significant adverse impacts on the existing environment. The operational efficiency is achieved through
reducing energy and materials as input factors for production and at the same time waste materials are also
reduced & recycled to extent possible. This sort of actions of eco-efficiency produces concurrent
environmental and economic benefits for the company and thereby contributes into stronger financial
performance and more positive profitability.
The Essar foundation is setup by the group to pay attention to the Corporate Social Responsibilities. The
foundation is working within the framework of the 3E model -Entrepreneurship, Education and Environment to adopt a future-focused approach to sustainability. The Foundation's activities, divided across six focus
areas like livelihoods and entrepreneurship, women's empowerment, health, education, infrastructure and
Ecology & environment.
In line with the Essar’ s CSR policy, Essar steel is working towards improvement in the living conditions of
local population near the project, particularly in the areas of health & hygiene, civic amenities, infrastructure,
DOC NO:
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Page 38 of 39
PRE-FEASIBILITY REPORT OF
REPLACEMENT OF ELECTRIC ARC FURNACES
(EAF’s) OF STEEL MAKING PLANT (SMP-1) BY
ESSAR STEEL INDIA LTD
BASIC OXYGEN FURNACES (BOF’s) IN HAZIRA
FACILITY OF ESSAR STEEL INDIA LTD
ESSAR PROJECTS (INDIA)
LIMITED
ENGINEERING & PROJECT
MANAGEMENT
education & training, water supply etc. The major activities being undertaken at present in these areas are
as follows;









3
Built a water pipeline to carry 0.7 million m of drinking water every day to the villages near Hazira.
Organises weekly recreational programmes for children between the ages of 9 and 12 at Ankur Bal
Kendra, Hazira.
Provides subsidized medical care at the Essar Hospital at Nand Niketan for the local population.
Provides subsidized education facilities at Nand Vidya Niketan for children of nearby communities.
Constructed overhead water storage tank at Matafalia village.
Maintains water pipelines, community wells etc.
Supported electrification of the 7 km stretch of road from L&T to Mandali Gate.
Built an approach road to the village crematorium.
Donated an ambulance to the Arogya Samiti of Hazira village.
Confidential
Considering all fact and figures, it is concluded that the reconfiguration will also be beneficial to the society
as the company will be contributing more into community welfare, public infrastructure improvement and
create number of jobs for the locals during construction and operational phase. It is recommended to
reconfigure the Steel Making Plant -1, within the premises of existing Essar steel Complex at notified Hazira
Industrial Area, Hazira district, Surat, Gujarat.
DOC NO:
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Page 39 of 39
EXHIBIT-1
Location Planof BOF
BY
PA
SS
RO
L&T
AD
L
EL
SH
H
HAZIRA
SURAT
SINTER -1
SURAT HAZIRA ROAD
JETTY
RP
ESSA
ORT
ESSAR PROJECTS (INDIA) LIMITED
ENGINEERING & PROJECT MANAGEMENT
ESSAR PROJECTS (INDIA) LIMITED
ENGINEERING & PROJECT MANAGEMENT