PRE-FEASIBILITY REPORT

MAHALAKSHMI PROFILES PRIVATE LIMITED

[PROPOSED EXPANSION STEEL PLANT]

SY.NOS. 287, 288 & 289 OF

KALLAKAL VILLAGE, MANOHARABAD MANDAL, MEDAK DISTRICT, TELANGANA.

 INDEX

S.NO ITEM PAGE NO

1. Executive Summary 3

2. Introduction of The Project / Background Information 5

3. Project Description 9

4. Site Analysis 25

5. Planning Brief 26

6. Proposed Infrastructure 27

7. Rehabilitation and Resettlement (R & R) Plan 29

8. Project Cost 29

9. Analysis of Proposals (Final Recommendations) 29

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 1.0 EXECUTIVE SUMMARY

PREAMBLE:
Steel being a basic commodity for all industrial activities, quantum of its consumption is considered an index of
industrial prosperity. Since independence, there has been a substantial growth in the steel sector in India from 1.5
Million Tons in 1950-51 to about 40 Million Tons at present. Additional steelmaking capacity of about 30 Million Tons
/year exists in the secondary steel sector. Despite the above growth in the steel sector, the per capita steel
consumption continues to remain at a level of about 27 kg only, compared to about 350 to 450 kg in the developed
countries and 40 to 100 kg in some of the developing countries. Further, with nearly 20% of the world population,
India’s contribution is only of the order of 4% of world steel production. Hence, short-term and long-term
strategies are necessary in planning the development of the steel industry in the country to improve the level of per
capita steel consumption. It is expected that with the measures taken by Govt. of India for promotion consumption
of iron and steel and expected growth of Indian economy the requirement of steel will significantly increase and
accordingly the domestic manufacturing capacity needs to be increase. Considering the potential steel in India,
Mahalakshmi Profiles Pvt. Ltd. decide to expand the existing plant in Survey No. 287, 288 & 289 of Kallakal Village,
Manoharabad Mandal, Medak District. The following is the technological process route selected by MPPL:
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos. 287, 288 & 289 of
Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing plant is having valid Consent For
Operation from TS Pollution control Board. Now the company have proposed to expand the existing plant. The
following are the details of production capacities of existing and proposed expansion project:

Capacity
S. No. Product
Existing Expansion After Expansion

1. MS Billets though Induction Furnace 90 TPD 621 TPD 711TPD

2. MS Skelp through Strip mill 165 TPD 534 TPD 699 TPD

3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4. Scaffolding -- 50 TPD 50 TPD

5. Galvanized Strips/Coils -- 300 TPD 300 TPD

6. Hot Dip Galvanizing of MS ERW Tubes -- 300 TPD 300 TPD

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PROJECT DESCRIPTION:
SITE DESCRIPTION:
Mahalakshmi Profiles Pvt. Ltd. decide to expand the existing plant in Kallakal Village, Manoharabad Mandal, Medak
District. The existing plant is having land of in 8.30 acres. Now an additional 10 Acres 27 Guntas of land is acquired
for the proposed expansion which is adjoining the existing plant. Total after expansion is about 19 Acres 17 Guntas.
The present use of the land is industrial.

CHOICE OF FUEL:
Furnace oil or Producer gas will be the fuels proposed to be used in re-heating for manufacturing strips. High grade
industrial coal through

COMMON FACILITIES:
The common facilities such as Administrative Building, Fire Water Reservoir and Fire Water Pump house, Workshop
Building, Water Storage Reservoir, Raw Water Pump House will be provided at the site.

SOURCE & AVAILABILITY OF WATER:

The water requirement for the proposed expansion project will be met from ground water sources. Permission from
ground water department will be obtained.

POLLUTION CONTROL MEASURES:

The Fugitive emissions from the Induction furnaces will be sucked through suction hoods and will pass through Bag
filters and then discharged through stack. The dust will be pneumatically carried to covered bins. The outlet dust
emission will be less than 50 mg/Nm 3. The flue gases from the Strip Mill will be discharged into the atmosphere
through a stack for effective dispersion of emissions into the atmosphere.

Closed circuit cooling system will be adopted in SMS & Strip. Hence there will not be any waste water generation
from process and cooling. Sanitary waste water will be treated in septic tank followed by soak pit.

Solid waste will be disposed as per norms.

PROJECT ECONOMICS:
The expansion Project Cost has been estimated at Rs. 150 Crores. The Project would be funded in a Debt: Equity ratio
of 65:35. The entire debt is assumed to be funded through Rupee Term

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 Loans. However, funding from the appropriate export credit agencies would be explored upon finalization of the EPC
Contract and the benefits would be passed through in the tariff.

2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION

IDENTIFICATION OF PROJECT AND PROJECT PROPONENT:

Mahalakshmi Profiles Pvt. Ltd., proposes to expand the existing plant by installing 2 X 20 MT Induction Furnaces
along with CCM for making 621 TPD (2,04,930 TPA) of MS Billets and New roughing stand/Modernization activities
for making 534 TPD (1,76,220 TPA) of MS Skelp and installation of 3 new ERW Tube mills for production of 835 TPD
(2,75,550 TPA) of MS Pipes and installation of scaffolding workshop for production of 50 TPD (16,500 TPA) of
Scaffolding. Installation of Continuous Coil Galvanizing unit for manufacturing of 300 TPD (99,000 TPA) of Galvanized
Strips/Coils and installation of Hot Dip Galvanizing unit for manufacturing of 300 TPD (99000 TPA) of Hot Dip
Galvanizing of MS ERW Tubes. This feasibility report covers the techno economic aspects of the complete proposed
plant.

THE PROMOTERS:
Mahalakshmi Profiles (P) Ltd.:
The Company has its registered office at 1-9-8, I.D.A, Azamabad, Hyderabad, Telangana. The Company is engaged in
Manufacturing of Hot Rolled Strip, MS ERW Pipes & Tubes. MPL stands on a foundation of skill and enterprise with
experience of over five decades. The founder Late Shri Mohanlal Agarwal is the first promoter of the steel industry in
Andhra Pradesh. Over the last fifty years we have combined technology with expertise to manufacture a wide range
of steel products geared to serve a variety of needs. In fact one of our group concerns, Mahavir steel rolling mills,
was the first to set up a re-rolling mill in the state of Andhra Pradesh. With a modest turnover of Rs. 13.97 Crores for
the year ended March 2002, the Company has registered a turnover of around Rs. 269.85 Crores and net profit of
5.02 Crores for the year ended March 2018, and has targeted a turnover of Rs. 500 Crores for the year 2020. The
company has manufacturing at Kallakal village, Manoharabad Mandal, Medak Dist, Telangana. The company now
proposes expand the existing plant by modernization of Strip mill and Induction Furnace in existing plant premises,
setting up of new tube mill division along with strip galvanizing and hot dip galvanizing facilities.

Promoters:

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The company is promoted by:

1. Mr. Ramniranjan Agarwal

2. Mr. Vinod Kumar Agarwal
All the Promoters have a very strong background in steel industry. Each one of them has vast experience in steel
industry. The promoters have other manufacturing units which are all profit making and have good market
reputation. Here is brief profile of other companies of the promoters:

Sri Shiv Shakti Alloys & Metals

The company is having 100 x 2, Sponge iron kilns in Veerlapalli Village, Shadnagar Mandal, Mahbubnagar Dist. The
unit is one of the biggest producers of Sponge iron in Andhra Pradesh, For the year ended March 2008 the company
had a turnover of 19cr with net profit of 4.0cr.

Mahalakshmi Alloys & Metal (P) Ltd.

Mahalakshmi Alloys & Metals Pvt. Ltd. Having registered office at H.No. 7-1-71/M/1, 3 rd floor, Guru Balaji Nivas,
D.K.Road, Ameerpet, Hyd-16. The company is engaged in Mgf. of C.I.Castings. The company was incorporated in 2004
and it started setting up of casting unit at Survey No. 825, Chegur village, Kothur Mandal, Mahabub Nagar Dist. A.P in
the year 2005. It commenced production in Aug.2005 and achieved break even in 1st full year of operation. For
financial year ended March 2008.The Company has achieved turnover of 27cr and net profit of 0.60 cr. The company
is one of the leading manufacturers of Good Quality Ingot moulds in South India and has a good market standing.
The company has diversified into trading of iron ore and is supplying iron ore to Maa Mahamaya Industries,
Vishakhapatnam, Concast Ferro Inc., Sirkakulum

MPL Cement & Sponge Pvt. Ltd.

MPL Cements & Sponge Pvt. Ltd. was taken over as a sick-unit and reinstated into operating condition by the group.
The company has a 30TPD Sponge Iron facility with pre-heater technology. Recently, the cement grinding unit within
the same facility has been commissioned. The company is selling OPC and PPC cement under the brand name of
MPL®.

Conclusion:
The promoters of the company are having presence in every field of Iron & Steel Industries. They have foundry, re-
rolling mills, Sponge Iron Plant, Induction Furnace, tube mills etc. They are actively involved in trading of Iron Ore,
Sponge iron, Pig Iron, Billets And other steel Products.

6
 With their vast experience the promoters will have no difficulty in procuring raw material and in day to day operation
of the plant. The promoters have excellent financial standing and are rated very highly by the banks.

BRIEF DESCRIPTION OF NATURE OF PRODUCT

The expansion proposal involves:

 Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces

 Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp by through Strip mill.

 Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.

 Manufacturing of 50 TPD (16,500 TPA) of scaffolding.

 Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / coils.

 Manufacturing of 300 TPD (99000 TPA) of Hot Dip galvanizing of MS ERW Tubes.

NEED FOR THE PROJECT AND IMPORTANCE TO THE REGION:

India is the world’s third-largest producer of crude steel (up from eighth in 2003) and is expected to become the
second-largest producer by 2016. The growth in the Indian steel sector has been driven by domestic availability of
raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been major contributor
to India’s manufacturing output.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous
modernization and up-gradation of older plants and higher energy efficiency levels.
India’s crude steel capacity reached 109.85 Million Tonnes (MT) in 2014-15, a growth of 7.4 per cent. Production of
crude steel grew by 8.9 per cent to 88. 98 MT. Total finished steel production for sale increased by 5.1 per cent to
92.16 MT. Consumption of total finished steel increased 3.9 per cent to 76.99 MT.
India produced 7.34 MT of steel in the month of September 2015, which was nearly equal to the country's steel
production in September 2014.
The steel sector in India contributes nearly two per cent of the country’s gross domestic product (GDP) and
employs over 600,000 people. The per capita consumption of total finished steel in the country has risen from 51 Kg
in 2009-10 to about 59 Kg in 2014-15. India's steel consumption for FY 2015-16 is estimated to increase by 7 per
cent, higher than 2 per cent growth last year, due to improving economic activity, as per E&Y's 'Global Steel 2015-16
report.
The Government of India is aiming to scale up steel production in the country to 300 MT by 2025 from 81 MT in
2013-14.

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 The Ministry of Steel has announced to invest in modernization and expansion of steel plants of Steel Authority of
India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) in various states to enhance the crude steel production
capacity in the current phase from 12.8 MTPA to 21.4 MTPA and from 3.0 MTPA to 6.3 MTPA respectively.
The Minister of Steel & Mines, Chaudhary Birender Singh , has reiterated commitment of Central Government to
support the steel industry to reach a production target of 300 Million Tonne Per Annum (MTPA) in 2025.
The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology Mission of India
(SRTMI) in association with the public and private sector steel companies to spearhead research and development
activities in the iron and steel industry at an initial corpus of Rs 200 Crores (US$ 31.67 million).
India is expected to become the world's second largest producer of crude steel in the next 10 years, moving up from
the third position, as its capacity is projected to increase to about 300 MT by 2025. Huge scope for growth is
offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to
increased infrastructure construction and the thriving automobile and railways sectors.
Chhattisgarh, Karnataka and Andhra Pradesh are rich in respect of minerals which is evident from Iron Ore Mines
existing these states. Hence, the Iron products like Iron Ore, Pig Iron, Billets, Ingots, Blooms are available at lower
transportation cost in Hyderabad. There are many mini steel plant and Rolling Mills in this area consuming these
items as raw material for producing steels.
After formation of “Telangana State” in year 2014 and with increasing as Capital a huge demand for steel and
cement has created and recently, the overall development of infrastructure will be there. This demand will further
increase the gap between demand and supply of steel.

DEMAND – SUPPLY GAP

The product pipe will be used Oil gas exploration hence a lot of demand in various region in south India.

IMPORTS V/S INDIGENOUS GENERATION

The product will be utilized in domestic purpose and some part will be exported.

EMPLOYMENT GENERATION (DIRECT & INDIRECT)

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The proposed expansion project creates employment to 500 people during construction and 500 people during operation
project.

TYPE OF THE PROJECT:

The expansion proposal involves:

 Manufacturing of 621 TPD (2,04,930 TPA) MS Billets through Induction Furnaces

 Manufacturing of 534 TPD (1,76,220 TPA) of MS Skelp through Rolling mill.
 Manufacturing of 835 TPD (2,75,550 TPA) of MS Pipes through Tube Mill.
 Manufacturing of 50 TPD (16,500 TPA) of Scaffolding.
 Manufacturing of 300 TPD (99,000 TPA) of Galvanized Strips / Coils.
 Manufacturing of 300 TPD (99,000 TPA) of Hot Dip Galvanizing of MS ERW Tubes.

LOCATION:
The proposed expansion project will establish in the existing plant premises and adjacent land of Kallakal Village,
Manoharabad Mandal, Medak District. The following are coordinates of the plant site.
COORDINATES OF PLANT SITE

S. NO. LATITUDE LONGITUDE

1. 17°42'3.22"N 78°29'1.19"E

2. 17°41'57.66"N 78°29'0.91"E

3. 17°41'57.60"N 78°28'55.80"E

4. 17°41'52.50"N 78°28'55.60"E

5. 17°41'52.50"N 78°28'55.40"E

6. 17°41'54.20"N 78°28'50.00"E

7. 17°41'54.20"N 78°28'49.60"E

8. 17°41'54.10"N 78°28'49.10"E

9. 17°41'55.30"N 78°28'48.80"E

10. 17°41'55.40"N 78°28'49.40"E

11. 17°41'56.60"N 78°28'49.40"E

12. 17°41'56.70"N 78°28'49.60"E

13. 17°41'56.90"N 78°28'49.70"E

14. 17°41'56.60"N 78°28'47.00"E

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 15. 17°41'56.50"N 78°28'47.00"E

16. 17°41'55.90"N 78°28'42.00"E

17. 17°41'56.20"N 78°28'41.90"E

18. 17°41'56.80"N 78°28'46.70"E

19. 17°41'57.60"N 78°28'46.70"E

20. 17°41'57.50"N 78°28'48.20"

21. 17°42'0.80"N 78°28'48.50"E

22. 17°42'0.70"N 78°28'50.60"E

23. 17°42'2.00"N 78°28'50.90"E

24. 17°42'2.30"N 78°28'56.20"E

25. 17°42'2.20"N 78°28'56.20"E

26. 17°42'2.79"N 78°29'0.25"E

The topographical map of the plant site and surrounding 10 Km radius and Google map showing plant are shown below.

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 10 Km RADIUS
TOPO MAP
SHOWING
SITE
SURROUNDIN
GS

1 centimeter = 1.141 meters

LEGEND
GPS POINTS
PLANT SITE BOUNDARY
GPS CO-ORDIHATES
1.17°42’3.22"N-
78°29'01.19"E
2.17°41'57.66"H-78°29'0.91“E
3.17’41’57.60"N-7B°28'55.80"E
4.17°41’SZ. 50"N-78°28'55.60"E
5.17°41’52.50"N-78°28'S5.40"E
6.17°41’54.20"N-78°28'50.00"E
7.17°41'54.20"N—
78°2B'49.60"E
B.17°41’54.10"N-
78°2B'49.1O"E
9.17°41'55.30"N-
78°28'48.80"E
10.17”41 '55 40”N-78”2B'49 40
11,17“41 '56.60"N-78“28'49.40"E
12.17°41 '56.70”N-78’28'49.60"E
13.17°41’56.90"N-7B°28'49.70"E
14.17’41’5g.60”N-78°28'47 O0"E
15.17°41’16.50”N-78°28’47 00"E
16.17°41 '55.9O"N-78°2B'42 00"E
17.17°41’56.20"N•78°28'41.90"E
1B.17”41 '56.80"N-78°28’46.70“E
19.17”41’57.60"N-78°28'46.70"E
20.17°41 '57.50"N-78°28'48.20"E
21.17°42'00.80”N-
78°28'48.50"E
ZZ.17°4Z'O0.7O"N-78°2B'50
60"E 23.17“42’02.00”N-
78°28'50.90"E
17°4Z’Li2.30"N-78°28’56.20"E
25.17°42'02.20"N-
78°28'56.20"E
Zb.17’4Z'O2.79”N-
78°29'00.25“E

SOu
Survey of India Topographical
maps. No sg as and
10
GOOGLE MAP SHOWIN THE PLANT

Plant site

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 SIZE OR MAGNITUDE OF OPERATION:
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos. 287, 288 & 289 of
Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing plant is having valid Consent For
Operation from TS Pollution control Board. Now the company have proposed to expand the existing plant . Unit 2
The following are the details of production capacities of existing and proposed expansion project:
Capacity
S. No. Product
Existing Expansion After Expansion

MS Billets though
1. 90 TPD 621 TPD 711TPD
Induction Furnace

2. MS Skelp through
165 TPD 534 TPD 699 TPD
Strip mill

3. Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4. Scaffolding -- 50 TPD 50 TPD

5. Galvanized Strips/Coils -- 300 TPD 300 TPD

Hot Dip Galvanizing of

6. -- 300 TPD 300 TPD
MS ERW Tubes

PROCESS DETAILS:

A) INDUCTION FURANCE [STEEL MELTING SHOP]

In Steel Melt Shop (SMS) Sponge Iron will be melted along with melting scrap and fluxes to make pure liquid steel
and than to mould it in required size billets. The shop consists of following equipment and subassemblies:
Induction Furnaces: Induction Furnace is a device to melt the charge material using electrical power. It consists of
Crucible lined with water cooled induction coils, Electrical system to give controlled power to induction coil,
Hydraulic tilting system, Heat exchanger to cool the circulating water, water softener for generating soft water,
furnace transformer, Power Factor improvement system and surge suppressor.
Ladles: Ladles are pots with refractory lining inside to withstand 1600 deg C temperature. It has side arms so that it
can be lifted with the help of crane. Ladles are used to stores the liquid steel from Induction Furnace and take it for
further processing. Ladles are with bottom nozzle and pneumatically operated gate for discharge of liquid.
Cranes: Electric Over-head (EOT) cranes of various capacities are used to carry the ladles/materials at different
places. Cranes are used in Melting hall to charge melting scrap, remove the ladles to the LRF, further to place it over
the Tundish of the Continuous Caster, to remove billets from the cooling bed and store at designated places, and
also for other petty use. Accordingly the sizes, capacity and number of cranes are decided.
Continuous Casting Machine (CCM): CCM is used to continuously cast the liquid steel in required cross section and in
length. It consists of Tundish, Mould, Bow with Withdrawal mechanism, straightening mechanism and cooling bed,
hydraulic system for withdrawal mechanism, water sumps and cooling towers for water spray on the withdrawn
section as well as on the cooling bed. Dummy bar is provided to start the casting. Tundish is a rectangular vessel,
lined with refractory and having discharge nozzle with pneumatically operated gate. A stand is erected over it where
the ladle is stationed for discharging the liquid in it. Mould is of copper with water cooled jacked. Its cross-section in
the bottom is of the size of which billet is to be drawn. Initially the dummy for of the same size is kept inserted.
When the liquid steel is poured in the mould the dummy bar is drawn slowly, so that the liquid steel in partially
frozen state comes out of the mould. Water spray nozzles are installed to spray water over the just drawn billet to
cool it further and to harden the skin of the drawn billet.

B) STRIP MILL
The primary function of the Hot Strip Mill is to reheat semi-finished steel slabs of steel nearly to their melting point,
then roll them thinner and longer through 8 successive rolling mill stands driven by motors totalling 10,000 HP and
finally coiling up the lengthened steel strip for transport to the next process. The Hot Mill rolls billet pieces weighing
up to 600kg between 100*100 and 160*160mm. Steel billet of up to 160mm thickness is rolled into strip as thin as
1.2mm up to 400 feet in length.

Raw Material Handling:

The raw material for making strip is MS square billets/MS Slabs. The billets are then cut using liquid oxygen and LPG
into smaller lengths as per the desired dimension of strip to be produced. The cut-to-length billets are placed on a
charging grate. With the help of a hydraulic arrangement the billets are fed onto the conveyor and in turn conveyed
to the pusher top.

Reheating Furnace:

Critical to the Hot Strip Mill is its pusher-type reheat furnace nominally rated to produce 30 tons- per-hour. Heating

this much steel from room temperature to 1150-1200°C consumes around 32

14
MT of coal each day. The cut length billets are placed on a roll line. When space is available in the furnace, large
hydraulic ‘pusher arms’ are engaged to move the billets into the furnace. Much of the preheating of the steel
is achieved by the hot exhaust gases rushing past the billets on the way to the ‘recuperators’ above the charge
door. Whatever heat is left in the exhaust gases preheats the incoming combustion air to over 450°C in these
massive heat-exchangers. Conversely, in the heating zone the steel is primarily heated by the glowing-hot furnace
walls. In the soak zone, numerous smaller burners seek to maintain a uniform temperature within the zones to
equilibrate any cold spots in the billets. Refractory dividers help to physically distinguish the zones, and
thermocouple temperature sensors throughout the furnace. When the billet reaches the ‘discharge door’ at the
exit end of the furnace, the billet has been sufficiently heated, the door opens and the ejector billet pushes the
hot piece out of the furnace. The intensely hot billet is placed on a roller table which carries it into the roughing mill.
Direct feeding of HOT Billets /slabs from CCM

Descaling:
After exiting the reheat furnace, the Billets/slabs passes through a descaling unit, an enclosure employing two pairs
of spray headers that blast the intensely hot billet with pressurized water to remove the scale of oxidized iron that
forms at the surface of the slab in the oxygen-rich atmosphere of the reheat furnace. Shortly after descaling, a
(relatively) small 2-hi rolling mill called a scale breaker breaks up any scale that remains.

Roughing:
The roughing mill is made up of 5 rolling mill stands, two of which incorporate small vertical rolling mills called
edgers. Billets are heated in the furnace until they glow bright orange-yellow are rolled through one stand at a time
to produce so-called transfer bars suitable for finish rolling. High-pressure water-jet nozzles clean the oxidized iron,
or scale, from the surface along the way. The two vertical stands, each incorporate edgers for width control and roll
the bar from five to six inches thick incrementally down to around an inch and a quarter, depending on the
customer’s ordered width, gauge, and steel grade.

Edging:
At the very high temperatures at which the steel is rolled in the roughing mill, it is very plastic and ‘flows’ easily like
cookie dough beneath a rolling pin. Consequently, as the Billets/slab is reduced from five to six inches thick
to the final bar thickness of few millimetres; bars tend to
spread width-wise by a few inches at their extremities, and by as much as an inch through the

15
body. The edgers serve to hold a uniform width through the bar’s length, and are powerful enough to squeeze
the bar as much as an inch narrower than the slab’s original dimension.

Finishing:
The Hot Strip Mill includes three finishing stands, which reduce the thickness of the transfer bar down to the gauge
required by the customer or the next process. The rolling speed is set to allow the last stand to perform the final
reduction at the finishing temperature, between 850° to 1000°C, specified to reach certain mechanical properties. By
now, the steel has been rolled into a flat strip as long as 200 feet. In contrast to the roughing mills, the finishing mills
roll the transfer bar in tandem, meaning each bar will be rolled through all three stands at once. The hot steel is
quite fragile as it is rolled and tension between the finishing mill stands must be closely controlled at very low levels
in order to avoid stretching or tearing the strip.

Coiling
The strip is passed through a pinch roll and the head end is mounted on a horizontal coiler. The coil build up takes
place until the desired weight of the coil is achieved. The coil is conveyed on conveyors to the point of storage or use
for the next process.

C) TUBE MILL
The coil as per desired width and thickness is received from the stock yard and loaded onto decoiler. The end of the
strips are sheared and butt-welded and fed into a storage cage. The strip is passed through the forming section of
the pipe mill and then into the Fin-pass section. In this process, it gradually takes the shape of a round tube. Using
the process of High Frequency Induction Welding, the edges of the strip are heated and welded. The extra metal on
the weld seam is removed using a scarfing tool. The tube which becomes hot in the process is cooled in the cooling
chamber. The sizing section adjusts any deviation in the shape and size of the tube as per desired levels. The tube is
then cut to suitable lengths using a circular flying saw driven by rack & pinion system. The cut-length tubes are then
conveyed to a rack where they are bundled and stored in the stock yard for dispatch.

D) CONTINOUS COIL GALVANIZING

Coils to be processed on either galvanizing line are charged, or loaded, onto one of two Pay-Off Reels. The head of
the coil being charged is welded to the tail of the coil being processed by a lap seam welder. Between 1/32” and
1/4” of the two coils are over-lapped onto one another, and a

16
pair of high-voltage copper wheels, one above and one below, roll from one edge to the other, melting the laps and
pressing them into one another. The resulting weld is nearly flattened to the gauge of each coil, but with a slight
bulge in the center of the seam. The voltage applied between the two dies and the speed at which they roll across
the width of the strip are pre-programmed in a computer as various recipes that are called up according to the
gauges and grades being processed.
After welding, the strip travels into the ‘Entry Loop Car’, or accumulator section, where enough material is
stored to allow the entry section to shut down for at least a minute and a half while another coil is charged without
slowing the process (annealing and zinc pot) section. The Loop Cars for the #1 CGL travel horizontally, while the
newer line employs multi-strand, vertical accumulators.

Cleaning & Preheating

Before heat treating, the strip is cleaned of rolling oils and iron fines with rotating brushes and diluted sodium
hydroxide (caustic soap). The steel is preheated in the process section to a relatively low temperature to further
clean the strip surface and minimize the time needed for the reducing zones to bring the steel up to its annealing
temperature.
Burners in the Preheat section combust natural gas in open air to maintain zone temperatures as high as 2250°
Fahrenheit. Under normal operating conditions, the steel is in this section for only a few seconds and never actually
reaches this furnace temperature.
Producing ‘full hard’ galvanized steel requires striking a delicate balance between cleaning the surface adequately
for good zinc adherence and not sacrificing the strength desired by the customer by allowing the steel grains to
recrystallize. Costly low-carbon steel grades with small additions of titanium are sometimes used because they
anneal at relatively high temperatures and can be thoroughly cleaned prior to coating.

Heat Treatment
Because most of feed-stock for the galvanizing lines is Full Hard from the 5-Stand, both units incorporate processing
steps to remove rolling oils, iron fines and surface oxides from the strip to ensure good zinc adherence, and to
anneal the material to achieve the combination of formability and strength sought by the customer.
Immediately after the preheat section, the strip enters the ‘reducing zone’ where it is annealed to achieve the
customer’s physical requirements for formability in a heated atmosphere of 1 part hydrogen, 3 parts nitrogen.
The atmosphere prevents the growth of scale during heat-treatment,

17
actually ‘reducing’ light surface oxide back to iron. Heat is supplied by burning natural gas inside sealed tubes
above and below the strip, with the heat produced radiating from the walls of the tubes out into the reducing zones.
These zones are held at temperatures up to 1650° Fahrenheit, and, under normal operating conditions, the product
is annealed for less than a minute. Thin strip at the #2 CGL may spend only 10 seconds in the reducing zones, while
heavier gauges at the #1 CGL may take a couple of minutes to reach the necessary temperature. The steel is heated
to temperatures typically in the range of 1300° to 1500° Fahrenheit.
Because the furnace is cannot achieve abrupt changes in temperature, specific limits are placed on the scheduling of
coils to ensure smooth transitions between products with different annealing requirements. Since the annealing
process depends on both time and temperature, operators can ease the transitions by adjusting the speed of the
line.
Immediately after annealing, the strip travels through cooling zones incorporating air jets and recirculating fans
before being directed down the ‘snout’ to the zinc pot. The objective is to cool the steel to a temperature that
roughly matches that of the molten zinc; too warm and the coating’s adherence will be compromised by an
overly thick zinc-iron transition layer; too cool and the aluminum can begin to precipitate (freeze) out of the molten
zinc and get picked up by the pot roll, marking the steel.

Galvanizing
The facilities for coating steel are of the ‘hot-dip’ type, as opposed to electro-galvanizing, which is a plating
process comparable to chroming. After the steel has been thoroughly cleaned, annealed, and cooled to a
temperature that roughly matches that of the molten zinc bath, the strip enters the zinc pot and travels around a
‘pot roll’ which redirects it up through an ‘air knife’ system. Coating thickness is controlled by blowing off excess
molten zinc; the air pressure applied to a tapered gap in the knife lips, as well as the distance between the knives
and the strip, regulate how much zinc is carried out of the pot on the steel’s surface. The height of the air
knives above the zinc pot is adjusted according to strip speed. Additional blow-offs called edge baffles serve to
prevent the excess zinc coating inherent to the edges from resulting in a condition called ‘edge build-up’ that
causes the coil to flare up at the sides, stretching the material to the point that it will not lay flat during further
processing.
The thickness of the zinc applied to the steel is specified by CSI’s customers as a coating weight, in the unit of
hundredths of ounces per square foot. An order for ‘G-60’ seeks 0.60 ounces of zinc on every square foot of
steel, which, when evenly distributed, equates to a coating thickness of

about one-half of one thousandth of an inch (0.0005”) per surface. Since the heavier coating
18
weights add as much as 0.004” (for G-235) to the overall thickness of the coated steel, aim gauges at the rolling
mills provide for this so the finished product will meet the customer’s gauge requirements. The thickness of the
zinc coating is measured with a Gamma-ray and fed back into the computer which in turn adjusts the air knives to
optimize the coating weight. Changes in required coating weight, steel thickness, and even line speed are rapidly
compensated for automatically.
The ‘pot’ is replenished periodically with 1-ton ingots of 99.9% pure zinc. Massive induction heaters in the
basement maintain the pot at temperatures about 50 above the 800-degree Fahrenheit melt point of the zinc. Small
additions of aluminium improve the adherence of the zinc to the base metal by inhibiting the growth of the brittle
zinc-iron transition layer.
The strip travels more than ten stories straight up into the air out of the pot to allow time for the zinc to solidify
against the steel. Large fans in the cooling tower air-cool the freshly coated steel before it is sent through a water-
quench ‘shock roll’ tank.

Galvannealing
Products designated by an ‘A’ in their coating weight (for instance A-40) are ‘Galvannealed’, a process
wherein the just-coated steel’s surfaces are immediately reheated by open-air burners. The zinc is baked into
the steel until the two are alloyed, or metallurgically blended, with one another at the surfaces of the strip. The
finished product has a dull gray appearance due to the large proportion of iron that has diffused to the surface.
Galvannealed product corrodes more readily than galvanized steel and is intended for end-uses that will be painted,
such as computer brackets and appliance panels. While hot-dip galvanize must be chemically treated before
painting, galvanneal does not. The alloyed layer is relatively brittle and will tend to fracture and flake off
(‘powdering’) if flexed significantly by a paint line or roll-former.
Reheating is accomplished for this operation with a short, vertical, natural-gas furnace that is positioned above
each line’s zinc pot. Because of the limitations of these furnaces, line speeds are slowed considerably when
producing galvannealed steel and available coating weights are normally limited to A-60 or lighter to ensure that
‘free zinc’ does not remain at the steel’s surface.

Flatness Correction
Situated after each pay-off reel is a small uncoilerLeveler that flattens the head-end of the steel by removing its coil-
set, or memory of having been coiled up.

19
After the steel has been through the cooling tower and is roughly room temperature again, it passes through a
Tension Leveler much like that at the Pickle Line where the strip is tightly worked up and down by a series of roll
cassettes. Shape defects are removed from the strip as its thickness is reduced by around one-half of one percent.
The #2 Galvanizing line includes a 4-hi skin-pass mill stand situated just in front of the tension leveler to reduce strain
marks and impart a uniform surface texture on the coated product, subject to the customer’s specifications.

Final Processing
When required by the customer, a thin coat of rust inhibitor is applied to the strip as it travels through the chem
treat section after the tension leveller. A solution is squeegeed onto both surfaces and then air- dried, inhibiting the
formation of ‘white rust’ (water-stained zinc) for six months or longer.
Just before final inspection, the product passes into the stamping area where, when indicated on the schedule, the
strip is printed periodically with the product’s specifications. The older line uses four 16” diameter ink drums,
while the #2 CGL incorporates an ink-jet printer for improved print quality and greater flexibility.
When indicated by the customer, the strip is oiled after inspection. A spreader roll at the #1 CGL squeegees oil evenly
across the top surface of the steel shortly before it is recoiled, while the newer line uses an electrostatic oiler. Oil is
less expensive than Chem Treat, but it is not as durable and is more difficult for the customer to clean from the strip.
Typically, galvanize products that will be painted are oiled, while end-uses calling for exposed zinc receive Chem
Treat.

Inspection
Before recoiling, the strip is inspected to ensure it is dimensionally sound, and that any surface or shape defects are
acceptable, based on customer- and end-use-specific criteria. Each line has a small laboratory used to monitor the
process on an ongoing basis. Rockwell Hardness tests are performed on each parent coil to evaluate the annealing
heat treatment and feedback is normally given to the operator in time to adjust for the next coil. Additional tests are
performed to evaluate the coating quality; weighing a sample, chemically removing the zinc, then reweighing the
coupon confirms the coating weight; creasing a sample with a tight bend tests the adherence of the zinc to the base
metal. Periodic checks are performed to monitor the cleaner’s

20
detergent levels, the molten zinc bath’s aluminium and lead content, and the chem treat solution’s make-up.
Tensile test coupons to qualify Physical Quality steel are sent to the main lab for evaluation.

The finished strip is recoiled and cut to the weight required by the customer.

E) HOT DIP GALVANIZING

Hot dip galvanizing is the process of coating pipe and fitting with a layer of zinc alloy in a bath of molten zinc at
temperature around 450 °C.
As ISO 1461, ASTM A123, and EN10240, the galvanizing process has its own built-in means of quality control
because zinc does not react with an unclean steel surface. So Surface Preparation is a critical step.

Degreasing

A hot alkali solution, mild acidic bath removes organic contaminants such as dirt, paint markings, grease, and oil
from the metal surface.

Pickling

A dilute solution by heated sulfuric acid or ambient hydrochloric acid, removes mill scale and iron oxides (rust) from
the steel surface.

Fluxing
A zinc ammonium chloride solution, removes any remaining oxides and deposits a protective layer prior to dip
steel in bath.

According to ISO 1461, zinc coating thickness follows below form:

Local coating thickness Average coating thickness Average coating mass

Steel thickness
(minimum) (minimum) (minimum)
mm
μm μm g/m²

steel ＞6 70 85 610

21
 3＜ steel ≤6 55 70 505

1.5≤ steel ≤3 45 55 395

steel ＜1.5 35 45 325

Galvanizing
ERW Pipe are completely immersed in a bath of molten zinc. The bath chemistry is specified by ASTM B6, and
requires at least 98% pure zinc, to form series of bonded zinc-iron alloy layers.

RAW MATERIAL REQUIRED:

The following will be the raw material requirement for the proposed expansion project.

Source of Raw Method of Transport

S.No. Raw Material Consumption
Materials

Induction Furnaces with concast

551 TPD From Sponge iron By Road (covered trucks)

1 Sponge Iron
plants

2 Scrap 164 TPD Local By Road (covered trucks)

3 Ferro Alloys 6 TPD Local By Road (covered trucks)

Strip mill

1 Billets 587 TPD In plant generation Conveyors

High grade coal Imported/Purchased

2 32 TPD By Road (Covered trucks)
thermal from Traders

Tube Mill

1 MS Skelp 699 TPD In plant generation By Road (Covered trucks)

Purchased from
2 HR Coil 354 TPD SAIL/TATA/JSW/ By Road (Covered trucks)
Other Manufacturers

Scaffolding

1 MS Tubes 47 TPD In plant generation By Road (Covered trucks)

22
 Accessories/ Purchased from local
2 3 TPD By Road (Covered trucks)
Components Manufacturers

Continuous Coil Galvanizing

1 MS Skelp 150 TPD In plant generation By Road (Covered trucks)

Purchased from
2 HR Coils 150 TPD By Road (Covered trucks)
SAIL/TATA/JSW

Hindustan Zinc/
3 Zinc Other reputed By Road (Covered trucks)

Manufacturers

Hot Dip Galvanizing

1 MS ERW Tubes 300 TPD In plant generation By Road (Covered trucks)

Hindustan Zinc/
2 Zinc Other reputed By Road (Covered trucks)
Manufacturers

WATER REQUIREMENT AND ITS SOURCE:

The existing plant water requirement is 14.6 KLD and is sourcing from ground water. The proposed expansion project
water requirement will be 59.5 KLD. This includes Make-up water for Induction Furnaces, Strip Mill, Tube mill and
Domestic water. The water requirement for the proposed expansion project will be sourced from ground water.
After obtaining the approval from the Ground water department only, water will be utilized. The details of total
water consumption, it's breakup is shown in Table below.

WATER REQUIREMENT
SOURCE Existing Expansion After expansion
in KLD in KLD in KLD
Cooling water make up for SMS 3 20 23

Cooling water make up for Strip mill 4 13 17

Cooling water make up for Pipe mill 4 13 17

Continuous Coil Galvanizing

Hot Dip Galvanizing

23
 Domestic consumption 3.6 12.5 16.1

Total 14.6 59.5 74.1

QUANTITY OF WASTE GENERATED:

WASTE WATER GENERATION:
Closed circuit cooling system will be adopted in SMS, Strip mill & Tube mill. Hence there will not be any waste water
generation from process and cooling in the steel plant. Only waste water generation will be sanitary waste water.
Which will be treated in septic tank followed by soak pit.

SOLID WASTE GENERATION:

The solid waste generation and disposal method from the proposed expansion project will be as following.

S. NO TYPE OF SOLID EXISTING EXPANSION AFTER DISPOSAL PROPOSED

WASTE QTY. QTY. EXPANSION
(IN TPD) (IN TPD) QTY.
(IN TPD)

1 Slag Slag will be crushed and after iron

(from SMS) recovery the inert material will be
9 62.1 71.1 used in road construction/given to
brick
manufacturers

2 Mill scales Will be reused in SMS

8.2 26.7 34.9
(from Strip
Mill)
3 Scrap from Will be used in SMS
8.2 41.8 50
pipe mill

POWER REQUIREMENT
Power requirement for the existing plant is 7500 KVA being met from TSPDCL. Power required for proposed
expansion will be 15500 KVA and will be met from TSPDCL.

24
 CONNECTIVITY

Compo Description

Road The plant site approached by small road which connect NH-7 and Industry

Rail Dabilpur railway station is 2.8 Kms.

Air Nearest Airport located at Hyderabad which is about 70 km from the

Sea The nearest sea port is Kakinada which is about 410 Km from the proposed

LAND USE
The existing land is industrial land.

TOPOGRAPHY
The topography of the land is more or less flat without undulations.

EXISTING LAND USE PATTERN

The existing land is industrial land.

EXISTING INFRASTRUCTURE
All required infrastructure is prevailing in the site.

SOIL CLASSIFICATION
The soils of the district are mainly red earth comprising loamy soils, sandy loams and sandy clay loams. Red laterite
soils are present in Zaheerabad mandal. Black cotton soils comprising clay loams, clay and silty clay are found around
Gajwel, Sangareddy, Narayanakhed and Andole mandals. The soils in undulated regions have patchy crop cultivation
due to presence of rocks and hills.

CLIMATIC DATA FROM SECONDARY SOURCES

The district experiences dry climate. The agricultural Year is divided into four seasons. March to May constitutes
summer season recording highest temperature; summer shower with hailstorm is also received. The second period is
South-West monsoon season (Khariff) from June to September which decides the fate of Agriculturist and the
maximum rainfall of the year is received during this period and the wettest month is July. With summer showers
received during April-May months, the farmers start tilling the land and the sowing starts quite early by June. The
North-East monsoon (Rabi) is from October to the end of November. The post monsoon season which coincides with
winter will be from December to February.

25
PLANNING CONCEPT
We are operating Induction Furnace, Strip mill and Pipe mill in existing plant premises in Sy. Nos. 287, 288 & 289 of
Kallakal Village, Manoharabad Mandal, Medak District, Telangana. The existing plant is having valid Consent For
Operation from TS Pollution control Board. Now the company have proposed to expand the existing plant. The
following are the details of production capacities of existing and proposed expansion project:

Capacity
S. No. Product
Existing Expansion After Expansion

MS Billets though
1 90 TPD 621 TPD 711TPD
Induction Furnace

2 MS Skelp through
165 TPD 534 TPD 699 TPD
Strip mill

3 Pipes through Tube Mill 165 TPD 835 TPD 1000 TPD

4 Scaffolding -- 50 TPD 50 TPD

5 Galvanized Strips/Coils -- 300 TPD 300 TPD

Hot Dip galvanizing of

6 -- 300 TPD 300 TPD
MS ERW Tubes

POPULATION PROJECTION
Kallakal is a large village located in Tupran Mandal of Medak district, Andhra Pradesh with total 1612 families
residing. The Kallakal village has population of 6482 of which 3323 are males while 3159 are females as per
Population Census 2011.

In Kallakal village population of children with age 0-6 is 851 which makes up 13.13 % of total population of village.
Average Sex Ratio of Kallakal village is 951 which is lower than Andhra Pradesh state average of 993. Child Sex Ratio
for the Kallakal as per census is 998, higher than Andhra Pradesh average of 939.

Kallakal village has higher literacy rate compared to Andhra Pradesh. In 2011, literacy rate of Kallakal village was
67.86 % compared to 67.02 % of Andhra Pradesh. In Kallakal Male literacy stands at 76.87 % while female literacy
rate was 58.30 %.

26
LAND USE PLANNING

 Existing plant is located at Sy.Nos. 287, 288 & 289, Kallakal Village, Manoharabad Mandal, Medak
District.

 Land available for existing plant is 8 Acre 30 Guntas.

 Now additional 10 Acre 27 Guntas land has been acquired for the proposed expansion project which is
land adjacent to the existing plant.

 Total land after proposed expansion will be 19 Acre 17 Guntas.

AMENITIES / FACILITIES

Facilities like canteen, rest rooms are available in the existing plant as basic facilities to workers. And same will be
improved further.

INDUSTRIAL AREA
The main plant area comprises of Furnace sheds, Rolling mill area, Tube mill area, Scaffolding work shop ,raw
material storage and product storage etc.

RESIDENTIAL AREA (NON PROCESSING AREA)

No colonization is proposed; however, facilities like canteen, rest room and indoor games facilities will be provided
in the proposed plant and one Admin building is also proposed.

GREEN BELT
More than 1/3rd of total land availability is reserved for plantation i.e. greenery.
Greenbelt development plan

 Local DFO will be consulted in developing the green belt.

 Greenbelt of 33% of the area will be developed in the plant premises as per CPCB guidelines.

 10 m wide greenbelt is being maintained all around the plant.

 The tree species to be selected for the plantation are pollutant tolerant, fast growing, wind firm,
deep rooted. A three tier plantation is proposed comprising of an outer most belt of taller trees
which will act as barrier, middle core acting as air cleaner and the innermost core which may be
termed as absorptive layer consisting of trees which are known to be particularly tolerant to
pollutants.

27
 SOCIAL INFRASTRUCTURE
Social infrastructure will be developed as per need based in the Villages.

CONNECTIVITY

Compo Description

Road The plant site approached by small road which connect NH-7 and Industry

Rail Dabilpur railway station is 2.8 Kms.

Air Nearest Airport located at Hyderabad which is about 70 km from the
Sea The nearest sea port is Kakinada which is about 410 Km from the proposed

DRINKING WATER MANAGEMENT

The workers at the plant during construction will be provided with water for their requirement and for the
construction activities. The construction labour will be provided with sufficient and suitable toilet facilities to allow
proper standards of hygiene. These facilities would preferably be connected to a septic tank and shall be maintained
properly to have least environmental impact. Drinking water required for the workers will be met from ground water
resources.

SEWERAGE SYSTEM
Domestic waste water generated will be treated in septic tank followed by soak pit.

INDUSTRIAL WASTE MANAGEMENT

No waste water will be generated from the process. Only waste water generated will be sanitary waste water, which
will be treated in septic tank followed by soak pit.

SOLID WASTE MANAGEMENT

The solid waste generation and disposal method from the proposed expansion project will be as following.

S. NO TYPE OF SOLID EXISTING EXPANSION AFTER DISPOSAL PROPOSED

WASTE QTY. QTY. EXPANSION
(IN TPD) (IN TPD) QTY.
(IN TPD)

1 Slag Slag will be crushed and after iron

(from SMS) recovery the inert material will be
9 62.1 71.1 used in road construction/given to
brick
manufacturers

2 Mill scales 8.2 26.7 34.9 Will be reused in SMS

28
 (from Strip
Mill)
3 Scrap from Will be used in SMS
8.2 41.8 50
pipe mill

POWER REQUIREMENT & SUPPLY / SOURCE

The power required for the proposed expansion will be taken from TSPDCL.

7.0 REHABILITATION AND RESETTLEMENT (R & R) PLAN

No rehabilitation or resettlement plan is proposed as there are no habitations in the proposed expansion project site.

8.0 PROJECT SCHEDULE & COST ESTIMATES

The following is the breakup of the proposed expansion project cost.

Particulars Rs. in Crores

i. Induction Furnace with CCM 24.0
ii. Strip mill 14.0
iii. Pipe Mill 62.0
iv Scaffolding 5.0
v Continuous Coil Galvanizing 30.0
vi Hot Dip Galvanizing 15.0
Total Investment 150.0

Means of Finance Rs. in Crores

Particulars
i. Share Capital 49.5
ii. Term Loan 100.5
Total Investment 150.0

9.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

With the implementation of the proposed expansion project, the socio-economic status of the local people will
improve substantially. The land rates in the area will improve in the nearby areas due to the proposed activity. This
will help in upliftment of the social status of the people in the area. Educational institutions will also come-up and
will lead to improvement of educational status of the people in the area. Primary health centre will also come-up and
the medical
facilities will certainly improve due to the proposed project.

29
SOCIO-ECONOMIC DEVELOPMENTAL ACTIVITIES
The management is committed to uplift the standards of living of the villagers by undertaking following activities /
responsibilities.

 Health & hygiene

 Drinking water

 Education for poor

 Village roads

 Lighting
HEALTH & HYGINE

1. Personal and domestic hygiene,

2. Maintaining clean neighborhood,
3. Weekly health camps offering free-check up & medicines
4. Ambulance services
5. Education & drug de-addiction, aids.
DRINKING WATER
Making drinking water available at centralized locations in the village,
SUPPORTING EDUCATION
1. Providing books to all poor children,
2. Conducting annual sports festival in the village schools,
3. Providing amenities like fans, lavatories,
4. Maintain play ground etc.

30