PRE-FEASIBILITY REPORT

FOR

EXPANSION UNIT

OF

STAINLESS STEEL BILLETS FROM 60,000 TPA TO

1,80,000 TPA
at
Plot no 32, 33-B, 34, 35 & 36, Umargaon Industrial Area,
Dist Valsad, Gujrat

M/S CHANDAN STEEL LIMITED

EIA Consultant: Pollution and Ecology Control Services

(PECS), Nagpur, Maharashtra
NABET Accreditation No.121
 Chapter – 1

Executive Summary
1. Introduction

The demand for Stainless Steel has been increasing enormously due to the significant use
and need in day-to-day life in the form of coils, sheets, plates, bars, wire, tubing, etc., to be
used in cookware, cutlery, hardware, surgical instruments, major appliances, industrial
equipment etc. Stainless Steel could very well be the metal of future as it is lustrous,
ability to combat corrosion, 100% recyclable, hygienic and long-term value. Furthermore,
riding on strong growth for steel demand, the company is proposing to expand its capacity
in producing Stainless steel

The salient features of the project are given in Table 1

Table 1: Salient features of the project

Project name
Project location Plot no 32, 33B, 34, 35 & 36, GIDC, Umargaon, Valsad
District, Gujarat State

Total Area 16996.8 m2

Production Capacity Expansion of Manufacturing of Stainless Steel Billets
from 60,000 TPA to 1,80,000 TPA
Water Demand 466 KLD
Source of water GIDC
Power Requirement 15 MW
Man Power 75 Nos.
Nearest railway station Umbargoan Railway Station at 2.7Km (SE)
Nearest State Boundary Gujarat-Maharashtra State Boundary at 4.0 Km (SE)
Proposed project cost Rs. 12.00 Crore

The environmental consideration of the site is tabulated below:

Table 1: Environmental Setting of the project

Sr Particulars Details
No
1 Project Site Plot no. 32,33B,34, 35, & 36, GIDC Umbargaon ,
District Valsad, Gujarat

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2 Latitude 20°09’40.57"N
3 Longitude 72°46’24.52"E
4 Elevation above MSL 22 m
5 Toposheet 46 D/12, 46 D/16
6 Present landuse Industrial land
0
7 Climatic conditions Annual Average Maximum Temperature : 36.8 C
0
Annual Average Minimum Temperature : 12.5 C
Annual Average Humidity : 33% to 80%
Annual Average Rainfall : 1691 to 2324mm

8 Nearest National Highway/State Nearest State Highway is Umbargoan Sanjan

Highway Highway at 2.0Km (North)
Nearest Nation Highway is NH 8 at 14.0Km (East)
9 Nearest Railway Station Umbargoan Railway Station at 2.7Km (SE)
10 Nearest Village Umargaon main imp township with around 7000
population about 1.2 km away
Dahad at 1.5km (South)
Solsumba at 1.6 Km (NE)
11 Forest None
12 Nearest State Boundary Gujarat-Maharashtra State Boundary at 4.0 Km (SE)
13 Ecologically Sensitive Zones like None
wild life sanctuaries, national
parks and biospheres
14 Water Bodies Varoli River: 4.0 km North East ,
Arabian Sea: 3.5 km East

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 Chapter – 2
Introduction of Project/Background Information
2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

 M/s. Chandan Steel Ltd (CSL) was incorporated on 8th November, 1989. The Certificate
for Commencement of Business was issued on 06.02.1990.
 The objective of business is to manufacture Stainless Steel Billets with annual production
capacity of 60,000 TPA and its expansion.
 Environmental clearance is granted vide letter no.J-11011/479/2011-IA-II(I) dated 16th
March 2012 for existing plant.
 CSL produces both utensil grade stainless steel billets and industrial and engineering
grade stainless steel billets.
 Currently, the company has a 20 tons induction furnace with a 25 tons Argon Oxygen
De-carbonization vessel with a micro-processor based gas mixing station.

2.2 PROPOSED PROJECT DETAILS

M/s Chandan Steel Limited, has proposed the expansion of manufacturing Stainless
Steel Billets from 60,000 MTPA to 1,80,000 MTPA at Plot no. 32,33B,34, 35, & 36,
GIDC Umbargaon, District Valsad, Gujarat. 40 TPH Induction Furnace will be installed
in addition to existing 20 TPH Induction Furnace.

2.3 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND/
OR REGION

India is the third-largest crude steel producer in the world. In FY18, India produced
104.98 million tonnes (MT) of finished steel. Crude Steel production during 2017-18
stood at 102.34 MT. Exports and imports of finished steel stood at 1.35 MT and 1.89 MT,
during Apr-Jun 2018.

Steel consumption is expected to grow 5.7 per cent year-on-year to 92.1 MT in 2018.
India’s steel production is expected to increase from 102.34 MT in FY18 to 128.6 MT by
2021. The Government of India has allowed 100 per cent foreign direct investment (FDI)
in the steel sector under the automatic route.

India’s per capita consumption of steel grew at a CAGR of 3.96 per cent from 46 kgs in
FY08 to 65.25 kgs in FY17. The figure stood at 68 kgs during April-February 2017-18.

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 National Steel Policy 2017 seeks to increase per capita steel consumption to the level of
160 kgs.
Steel billets are the second-stage product of steel production. They are hot-rolled and are
taken out directly during casting process of steel.

2.4 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE

PROJECT:

The proposed project creates direct employment and indirect employment to 75 people.

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 Chapter – 3
Project Description
3.1 TYPE OF PROJECT
Expansion of manufacturing Stainless Steel Billets from 60,000 TPA to
1,80,000 TPA.
3.2. PROJECT AT GLANCE
a) Site Details:

Name of the proposed unit : Chandan Steel Limited

Location of the proposed unit: Plot no. 32, 33B, 34, 35, & 36, GIDC
Umbargaon, District Valsad, Gujarat.
Latitude: 20°09’40.57"N
Longitude: 72°46’24.52"E
b) Site Description:
M\s. Chandan Steel Ltd. has proposed to expansion of manufacturing of Stainless Steel
Billets. The factory is located at Plot no. 32, 33B, 34, 35, & 36, GIDC Umbargaon,
District Valsad, Gujarat.
The location map, topographical map and Google image is shown in the Figure 1.0,
Figure 2.0 and Figure 3.0 respectively.

Source: mapsofindia.com
Figure 1: Location of the Project Site

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 Source: SOI Toposheet
Figure 2: Topographical Map

Source: Google Earth

Figure 3: Google Image

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Source: NRSA Hyderabad
Fig. – Satellite Image

Source: NRSA Hyderabad

Fig. – Landuse/Landcover

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 Fig. – Plant Layout

Fig. – Umbargaon Industrial Area Layout

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 c) Analysis of Existing facilities

Good infrastructure is available in the vicinity of Plant; some of the key features are
listed below:

• Availability of adjacent tar road. Same can be used for transportation of all kind of Plant
Equipment, Raw material etc.

• Availability of adequate water resources. Rain water Harvesting will be adopted in the
plant.

d) Details of Alternate Sites Considered

As the proposed project consist of an operation plant i.e. existing 60,000 TPA S.S Billets,
the company is seeking Environment Clearance for expansion project in the premises of
existing plant. Thus, no alternative sites were considered.

3.3 SIZE OR MAGNITUDE OF OPERATION

Existing Proposed Total Capacity
S.N. Facility
Capacity Capacity
1 S.S. Billets 60,000 TPA 1,20,000 TPA 1,80,000 TPA

3.4 PROPOSED PLANT CONFIGURATION

S. Equipment /facility Existing Proposed Total after expansion

No
1 Induction Furnace 1 x 20 TPH 1 x 40 TPH 1 x 20 TPH
1 x 40 TPH

3.5 PROCESS DETAILS

Manufacturing Process for S.S. Billets
The production process is broadly referred to as to “DUPLEX REFINING”. The crux of
the production process is input of low value high carbon steel and Ferro Alloys and
production process is broadly as follows:
· Medium frequency Induction Furnace (melting)
· Argon Oxygen Decarburization (AOD) Convertor.
· Ladle Refining Furnace (LRF).

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· Continuous Casting in a Concast billet Machine.
· Hot rerolling of billets into hot rolled bars, angles, stub ends and Flats

The ferrous charge containing Steel Scrap and Ferro Alloys is melted in an Induction
Furnace as per the calculated quantities to get the desired steel chemistry. After
temperature adjustment and slagging off, the liquid metal is transferred to the pre- heated
AOD Vessel. Calculated quantities of lime are added in the hot metal and processed by
gas blowing in pre- fixed ratios Oxygen & argon/nitrogen. The Oxygen, Argon/ Nitrogen
start to decarbonize the melt. Blowing is done in three or four stages with changing ratios
of Oxygen and inert gases as per the carbon level of the liquid metal.
During blowing, due to several exothermic oxidation reactions, the temperature of the
bath goes up, but it has to be controlled by addition of coolant scrap, Ferro Alloys in
order to keep it below 1720° C.
During refining, decarbonisation, the chromium and manganese also gets oxidized and go
to slag. After decarbonisation, a reducing mixture containing Ferro Silicon and lime is
added to the liquid bath in order to reduce the oxidized chromium/ manganese, so that the
desired level of chromium and manganese are restored in the final steel output. After
degassing, composition of refined steel is checked and alloying additions are made, if
necessary.
The plant has got facility for duplex refining as a result of the L.R.F. In the AOD
conversion with the passing of Oxygen, first the temperature goes up, however, with the
addition of non-ferrous metal and of the refining process, the temperature of the molten
metal drops to a level barely adequate for pouring into the L.R.F. In the L.R.F., the
temperature of the metal is raised to the desired level. Here the process broadly intends to
attain the following:

· Fine tuning of refining to maintain desired level of composition of inputs.

· Removal of inclusions by argon purging.
· Removal of excess quantities of oxygen, by purging.
· Bringing floating inclusions at slag level.
The process flow sheet is presented in the following Figure.

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 Figure: Process Flow Diagram for Proposed Expansion Project

3.6 RAW MATERIAL REQUIREMENT :

The raw material requirement for the proposed expansion unit is given in Table.
Table: Raw Material Requirement Proposed Expansion Project

Name of the Material Existing Unit Proposed Capacity Total Capacity After
Capacity (TPA) (TPA) Expansion (TPA)
S.S. Scrap 92400 1,48,500 2,40,900
H.C. Ferro Chrome 5135 8217 13352
H.C. Ferro Manganese 4104 6567 10671
Ferro Silicon 3465 5544 9009
Ferro Nickel 3093 4950 8043
Lime 5280 8448 13728
Dolomite 2640 4224 6864

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3.7 RESOURCE OPTIMIZATION/ RECYCLING AND REUSE
Water will be used for cooling system, domestic and greenbelt purposes. Cooling water will
be recirculating in the system. Slag will be sold to brick manufacturers.

3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY/POWER REQUIREMENT

AND SOURCE

3.8.1 Water Requirement:

Total Water Requirement: 466 KLD

Source – GIDC
The breakup of water requirement for proposed plant is given below:

Water Requirement (m3/day)

Sr. No. Unit Requirement Wastewater Generation

(in CMD) (in CMD)
1 Domestic use 4 3
2 Cooling purpose 432 86
3 Gardening 10 -
4 Water Sprinkling 20 -
Total 466 89

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 Fig: Water Balance Diagram
3.8.2 Power Requirement:

The power required will be supplied by State Electricity Board. The power requirement
for the proposed project will be 15 MW.

3.9 QUANTITY OF WASTE TO BE GENERATED (LIQUID AND SOLID) AND THEIR

MANAGEMENT/DISPOSAL
3.9.1 Solid waste generation and its generation:
The only solid waste generated is slag about 4800TPA.
Solid waste is non-hazardous and non-toxic in nature.
Slag generated will be sold to tiles/brick manufacturers.

3.9.2 Liquid Effluent:

The Wastewater generated from the cooling purpose will be treated in the settling tank
within the premises and the treated water will be re-used back to the process. The effluent
from cooling system will be used for slag cooling and dust suppression, domestic
wastewater will be treated in Packaged Type STP. Hence, the zero wastewater discharge is
proposed for the expansion project.

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 Chapter – 4
Site Analysis
4.1 CONNECTIVITY

The nearest Railway station is Umargaon and the nearest district head quarters to the
proposed site is Valsad which is in North direction. The nearest airport is Mumbai – 150
km away.

Umargaon Railway Station is at 2.7km away from the project site and highway (NH8) is
at 14km away. This facilitates transportation of the raw materials and finished product to
major markets. Even for exports, the location is ideal as the Jawaharlal Nehru Port Trust
(JNPT) is 140 km away in SSE direction from the project site.

4.2 LAND FORM, LAND USE AND LAND OWNERSHIP

Chandan Steel Limited is having 16996.8 Sq Mt of land at GIDC Umbergaon for

Manufacturing of S.S Billets.

4.3 TOPOGRAPHY - WITH MAP

The proposed project site is flat. There will not be cutting and filling required for the
proposed expansion project.

The Topographical map of 10 km radius of the proposed plant site is given in figures
above.

4.4 EXISTING LAND USE, SHORTEST DISTANCES FROM THE PERIPHERY OF

THE PROJECT TO PERIPHERY OF THE FORESTS, NATIONAL PARK, WILD
LIFE SANCTUARY, ECO SENSITIVE AREAS, WATER BODIES, CRZ.

Chandan Steel Limited is having 16996.8 Sq Mt of land. The distance from water bodies
is Varoli River: 4.0 km North East & Arabian Sea: 3.5 km East.

4.5 EXISTING INFRASTRUCTURE

Good infrastructure is available in the vicinity of Plant; some of the key features are
listed below:

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 1. Availability of tar road which is adjacent to proposed expansion project site. Same can be
used for transportation of all kind of Plant Equipment, Raw material etc.

2. Availability of adequate Water Resources.

4.6 SOIL CLASSIFICATION

Physical characteristics of soil are delineated through specific parameters viz. particle
size distribution, bulk density, porosity, water holding capacity and texture.

4.7 CLIMATIC DATA FROM SECONDARY SOURCES

Climatological data collected from Secondary source i.e. IMD Valsad. The details of data
are tabulated below:

Temperature (oC) Relative Humidity (%) Rain-fall in mm

Month
Max Max Normal
January 33.9 73 4.2
February 34.3 70 3.5
March 37.9 69 6
April 38.5 72 4
May 36.8 74 21.2
June 35.1 80 567.8
July 34.6 88 299.5
August 31.5 89 199
September 33.4 89 255.2
October 35.8 81 83.2
November 34.7 71 118
December 33.2 71 22.2

4.8 SOCIAL INFRASTRUCTURE AVAILABLE

There is primary health centre, hospitals, Schools, colleges, market within 10 km. of
project boundary.

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 Chapter – 5
Brief Planning

5.1 PLANNING CONCEPT

Type of industry: Steel Manufacturing

Transportation Facilities: National Highway 8 for transportation which is about 14 kms

from Plant site connected by internal roads.

Town and Country planning/Development authority: GIDC

5.2 POPULATION PROJECTION

Total Population in 10 KM radius of site is estimated as 120553.

5.3 LAND USE PLANNING (BREAKUP ALONG WITH GREEN BELT ETC.)

The existing land is in industrial use. All required infrastructure is prevailing in the site.

The plantation and green belt development will also be taken care in the plant and the
space reserved for plantation will be about 33% of the total plant area. Adequate
plantation will substantially abate the dust pollution, filter the polluted air, reduce the
noise and ameliorate the plant environment.

5.4 FIRE PROTECTION SYSTEM

The firefighting system will be designed in conformity with the recommendations of the
Tariff Advisory Committee (TAC) of Insurance Association of India. While designing
the fire protection systems for proposed facilities its extreme ambient conditions need
special attention. Codes and Standards of National Fire Protection Association (NFPA)
will be followed, as applicable.

5.5 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL & SOCIAL).

Basic infrastructure demand for nearby area would be first to have internal roads,
availability of clean and pure drinking water, availability of good schools, availability of
Hospitals, community halls, Sulabh Shauchalaya , easy and faster means of transportation
and connectivity to nearby town and city, availability of uninterrupted electricity etc. are

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 the present assessed demands for sustained and healthy growth of nearby area of site.
Most of the infrastructure demand mentioned above comes automatically when industry
of this magnitude comes in such area, systematic efforts shall be made to bring such
facility in the surrounding area for all round physical and social development.

5.6 AMENITIES / FACILITIES

For the social development in the area the company has planned to construct community
halls, roads, provide drinking water etc. Time to time the company will also organize free
eye checkup, cataract camp, free distribution of spectacles etc.

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 Chapter – 6
Proposed Infrastructure
6.1 INDUSTRIAL AREA

Proposed expansion project is in existing premises of Steel manufacturing plant which is

located at Plot no. 32,33B,34, 35, & 36, GIDC Umbargaon , District Valsad, Gujarat.

6.2 GREEN BELT

The plantation and green belt development will also be taken care in the plant and the
space reserved for plantation will be more than 33% of the total plant area. Adequate
plantation will substantially abate the dust pollution, filter the polluted air, reduce the
noise and ameliorate the plant environment.

6.3 SOCIAL INFRASTRUCTURE

For the social development company will provide the arrangement of community hall,
road, water, electricity etc. in the nearby villages. For the economical development the
company will provide the employment as per requirement and individual’s qualification
& eligibility.

6.4 DRINKING WATER MANAGEMENT

Water for the plant will be sourced from GIDC. The water system will cater to the
drinking and sanitary requirements of plant personnel as well as laboratory and
contingent users. RO water purifier will be provided for drinking water in the plant.

6.5 INDUSTRIAL WASTE MANAGEMENT

The Wastewater generated from the cooling purpose will be treated in the settling tank
within the premises and the treated water will be re-used back to the process. The
domestic wastewater will be treated in Packaged Type STP. Hence, the zero wastewater
discharge is proposed for the expansion project.
The only solid waste generated is slag. Solid waste is non-hazardous and non-toxic in
nature. Slag generated will be sold to tiles/brick manufacturers.

6.6 POWER REQUIREMENT & SUPPLY /SOURCE

During Operation phase: 15 MW
Source of power supply: Electricity from State Electricity Board

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 Chapter – 7

Rehabilitation and Resettlement (R & R) Plan

The total land of Chandan Steel Ltd. for the installation of Steel Plant is 16996.8 sq mt which is
in industrial use. There was no displacement of people. Thus R & R issues are not applicable.

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 Chapter – 8
Analysis of proposal (Final Recommendations)

8.1 FINANCIAL AND SOCIAL BENEFITS WITH SPECIAL EMPHASIS ON THE

BENEFITS TO THE LOCAL PEOPLE INCLUDING TRIBAL POPULATION

The proposed expansion project will result in improvement of infrastructure as well as

upliftment of social structure in the area. The people residing in the nearby areas will be
benefited directly and indirectly. It is anticipated that the proposed plant will provide
benefits for the local people in two phases i.e. during construction phase as well as during
operational stage of the plant.
 OPERATIONAL PHASE
Employment
The manpower requirements for the operational phase after the proposed expansion
project will be about 75 people. In addition, there will be an indirect employment for
skilled/ semi skilled people during project life. All attempts will be made to employ
suitable, locally available, skilled personnel from the nearby area. In case of non-
availability of skilled persons, people will be employed from outside area.
Transportation
There will also be small increase in the vehicular traffic due to passenger transport. This
increase in traffic will not have any consequence to warrant special mention. One should
expect that the increased passenger load in the sector would prompt the state government/
private movers to start new and frequent public transport services to this area, bringing
upliftment to the whole locality.
Other Benefits
Chandan Steel Ltd. is equally conscious for the all-round socio-economic development
and is committed to raise the quality of life and social wellbeing of communities where it
operates. The activities under CER will be local need basis with focus on Health,
Education, Infrastructure Development, Drinking water, Sanitation and Environment
Conservation.

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 ENVIRONMENTAL MANAGEMENT PLAN
a) AIR MANAGEMENT

There will be two major source of air pollution in the plant, fugitive emissions from
various material handling and transfer points and flue gases generated from various
combustion units. Dust and fume extraction system will be provided for Induction
Furnace. Dust and fumes will be collected with the help suction hood with bag filter air
pollution control system of specified size followed by 30 m. stack and cleaned air will be
discharged through stacks, so that the dust concentration will be well within the
prescribed standard.
Height of the all the flue gas discharge facilities will be designed as per CPCB norms.
The various places where the flue gases will be discharge are shown in the table.

AIR POLLUTION CONTROL SYSTEM

S.No Process Air Pollution Control System Stack
Height
1 Induction Furnace Fumes Extraction System with 30 Mtrs.
Gas cooler & Bag Filter.

Transportation

 The raw material will be transported by Road.

 Raw material & Finished Products will be transported by road.
 About 19 trucks of 30 T Capacity will be required Per Day after
expansion.
 It will be ensure that all trucks carrying raw material are tarpaulin
covered.
 Internal roads are being Tarred / Concreted with installation of water
sprinklers to suppress dust due to transportation.

b) WATER ENVIRONMENT

The only industrial wastewater is from cooling tower which will be reused after
treatment. The domestic wastewater is being treated in packaged type STP.

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c) NOISE ABATEMENT
There is no large noise generating operation / equipment in manufacturing of billets &
except handling of finished product i.e. Billets.
Ear muffs/ear plugs will be provided to the workers, Acoustic laggings and silencers will
be provided in equipment.

d) ENVIRONMENTAL MONITORING

Necessary provisions for routine monitoring of stack emissions, ambient air quality, noise
level, water quality as required by the regulations will also be provided.

e) SOLID WASTE

Non-Hazardous, non-toxic solid waste. Slag generated will be used for tiles/brick
manufacturing. Used oil from machine lubrication and transformer cooling. Used oil will
be sold to M/s Nandesari Environment Control Ltd. Dist Vadodara. An authorized vendor
of Gujarat Pollution Control Board.

f) OCCUPATIONAL HEALTH AND SAFETY

Besides the above, the operating and maintenance personnel will be provided with all the
necessary safety equipment such as hand gloves, gum boots, aprons, helmets, protective
glasses, ear muffs etc.

Workers training will focus on reduction of wastes, utilization of wastes and generally
maintaining a clean and healthy environment.

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