PROJECT ON INTEGRATED

STEEL PLANT
SUBJECT - OPM
TERM – II
JULY 2009
OPM PROJECT
JULY 2009

TABLE OF CONTENTS

SUNIL SONY Page No.

ROLL NO. 26
1. Product 02
EPGDM – 4
2. Process
GLOBSYN Steps SCHOOL
BUSINESS 03

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3. Location 05

4. Layout Planning 07

5. Capacity Planning 09

6. Production & Operation Planning 10

7. Quality Requirement 12

8. Quality Assurance and Quality Control Plan 13

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1. PRODUCT

Integrated Steel Plant (Finished Product TMT Bars)

Sl.
Production per
No Module
Annum
.
1. 2 x 100 TPD DRI Unit 60000
2. 2 x 8 T SMS Unit 80000
3. 80 MT Rolling Mill Unit 80000
4. Captive Power Plant 5 MW

Overview of Indian Steel Industry

The Indian steel industry has a history of 125 years and was a regulated
industry till 1991 when it was de-licensed and private players were encouraged
to manufacture steel. The sector received high priority for automatic approval
for foreign direct investment. The demand for steel was expected to race ahead
after liberalization so additional manufacturing capacities were added.

The Indian steel industry ranks 5th in the

world with an annual production of 53.1
million tonnes in 2008. India accounts for per
capita steel consumption of 38 kg/year, as
against that of 180 kg/year in China, 600
kg/year in Singapore and 400 kg/year in the
European Union and the US. The country’s per
capita steel consumption will have to rise
substantially to a level comparable with that of China to realize the country’s
expansion plans in manufacturing, transportation and power infrastructure.
Correspondingly, the steel output and demand in India is expected to surge to
110 million tonnes per year by 2020 from 53.1 million tonnes in 2007.

Major Steel Players in Eastern India

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 Steel Authority of India

 Tata Steel Limited

 Essar Industries Limited

 Jindal Steel & Power Limited

 Bhusan Steel Limited

2. PROCESS STEPS

PROCESS FLOW CHART

Brief Description

• DRI: Sponge Iron is manufactured by using coal based technology where

iron ore is reduced to iron in a rotary kiln fired by non-coking coal. Input
charge comprising of iron ore, coal and dolomite are fed into the kiln. The
Sponge Iron is then discharged through the cooler and discharge on to a
heat resistant belt conveyor to be carried into product processing zone.

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• Steel Melting Shop: Sponge Iron is charged into Steel Melting Shop with
scrap and pig iron to manufacture mild steel. The liquid steel is cast into
semi-finished products such as billets, blooms, slabs etc

• Rolling Mill: Billets produced are first heated in a reheating furnace

until they are red hot (1200°C) and then passed through roughing stand.
A stand is a collection of steel rolls (or drums) on which pressure can be
applied to squeeze the hot steel passing through them, and arranged so
as to form the steel into the required shape. The roughing stand is the
first part of the rolling mill. Each pass gradually changes the shape and
dimension of the steel closer to that of the required finished product and
the last pass delivers finished size of the product.

3. LOCATION

Chosen location for the Integrated Steel Plant to produce Finished Steel will be
Purulia, West Bengal. Following are the Location Advantages:

Purulia in the state of West Bengal declared as Industrial estate it is located

adjacent to the State Highway. Purulia is now one of the most important
industrial destinations of the state of West Bengal.

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 Land: Purulia has good road connectivity for the purpose of man and
material movement. As the location has a barren (non agricultural) area
therefore acquisition of land will not pose any kind of difficulty

 Civic Amenities: The plant site is situated near Asansol town. All
necessary civil amenities (e.g. educational institution, college, school,
hospital etc) are available.

 Transport: The nearest railway station is Purulia and Asansol. The

nearest Airport is located at Kolkata which is 325 Kms away from the
site. This gives convenience in man & material movement

 Manpower: Availability of Skilled labour will not pose any problem as

various engineering institutes are located in the nearby area.

 Water: The requirement of the fresh water to meet process make up and
drinking needs will be made available through pipe lines from nearest
Kasai River.

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 Power: The total power requirement for the proposed unit can be
sourced from Captive Power Plant. Balance if any can be sourced easily
from nearby power supply station DVC & WBSEDCL.

 State Advantage: In West Bengal, the steel industry enjoys a logistical

advantage, growing market and an investment friendly industrial
climate. An abundant raw material supply makes it a preferred
industrial destination. The state attracted an estimated proposed
investment of Rs. 1,27,302 crore in Q3 2007-08. The principal
investments will be allocated towards power (Rs. 20,450 crore), steel (Rs.
17,133 crore) as well as oil and petroleum (Rs. 4,850 crore), creating a
significant opportunity for the consumption of steel.

 State Incentive Scheme: Since the location of the plant falls under the
Group C category as categorized under The West Bengal State Support
for Industries Scheme, the unit will enjoy following incentives as
categorized in the West Bengal Incentive scheme 2008 which are
summarized as follows:

Employment Reimbursement of 60.00% of the contribution made

Generation towards
Subsidy ESI and EPF for 7 years
Eligible for waiver of 75% value added tax (VAT) paid
Industrial
by the unit in previous year. It will be disbursed for 10
Promotion
years or till 50% of Fixed Capital Investment is
Assistance
reached, whichever is earlier.

4. LAYOUT PLANNING

Lay out Planning for the following Facilities:

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 Administrative Block: An Administrative Building will be made for day to

maintain and control day to day work.

 Housing Colony: A Housing Colony for administrative and factory

workers. This will benefit the company and its workers by providing them
with standard living environment and regular recreation facilities.

 Guest House: A Guest House for the visitors.

 Canteen: A Canteen to provide quality of food to workers.

 Laboratory: A well maintained Laboratory for the workers.

 Medical Room: A Medical room with the entire first aid stuff has to be
considered for the operating and maintenance personnel.

 Raw Material Storage Yard: For the Raw Material receipt & storage
would have capacity to store 1 month requirement.

 Water Storage Area: To keep fresh water to meet process make up and
drinking needs.

 Approach Roads: For the movement of man and material within the plant
area.

 Green Belt Area: In the process of steel-making, even with the latest
technologies available, it is not possible to completely eliminate pollution
in any of its diverse forms - air, water, noise or solid waste. Therefore it is
proposed to have a green belt all around the plant site by planting
suitable species of evergreen and broad leaves type. Plantation is also
envisaged on both sides of the plant road.

 Repair and Maintenance Shop: For running repairs and conditioning

monitoring.

 DRI Unit: For the production of Sponge Iron of the required capacity.

 Power Plant Unit: For the Captive production of Power from the Hot
Gases of DRI Unit.

 Steel Melting Shop Unit: For the production of Billets/Ingots of the

required capacity.

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 Rolling Mill Unit: For the production of Steel Product/TMT Bars of the
required capacity.

 Finished Product Stock Yard: For the final product from Rolling Mill
having capacity to store one month Stock.

 Quality Control Check: For the inspection of the final product before
dispatch.

 Product Load out Station: The finished product after Quality Control
check can be load into trucks for dispatch to customers.

PLANT LAYOUT

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5. CAPACITY PLANNING

Steel Melting
DRI Rolling Mill
Shop
2 Kiln x 2 Furnace x 8
Configuration 80 MT
100 TPD T
Hours per Shift 8 8 8
No. of Shifts in a day 3 3 3
No. of Days in a Year in
300 330 350
Operation
Production per Day in MT 200 242 228
Installed Capacity in
60000 80000 80000
MTPA
Sponge TMT Bars or
Final Product Billets/Ingots
Iron Rolled Products
Maximum Capacity
85% 85% 85%
Utilization
No. of Days required for
65 35 15
Maintenance in a year
one month one month
Inventory one month stock
stock stock

Note:

• For the smooth production line one Kiln of DRI Unit and one furnace of
SMS will always be in the production during any of the maintenance
period which will help to achieve the target or fulfill the customers
demand.

• One month stock will be kept in advance at Raw Material Yard for the
smooth production.

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• Finished Products (TMT Bars) can be sold in the open market. In view of
adequate demand in the Eastern Region and does not foresee any
problem in marketing the above products.

• The domestic demand-supply scenario is favorable and the strategy

would be to target domestic market for optimizing marketing costs.

• Agreement for Long term contracts with downstream players to minimize

marketing costs.

6. PRODUCTION & OPERATION PLANNING

Year Wise Production Planning

Year 1 Year 2 Year 3

Installed Capacity
- DRI Unit 60000 60000 60000
- SMS Unit 80000 80000 80000
- Rolling Mill 80000 80000 80000
Utilization during the year
- DRI Unit 70% 80% 85%
- SMS Unit 70% 80% 85%
- Rolling Mill 70% 80% 85%
Production during the Year
- DRI Unit (Transfer to SMS) 42000 48000 51000
- SMS Unit (Transfer to
Rolling) 56000 64000 68000
- Rolling Mill 56000 64000 68000
One Month Finished Stock
- DRI Unit 3500 4000 4250
- SMS Unit 4667 5333 5667

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- Rolling Mill 4667 5333 5667

Available for Sale
- Rolling Mill (TMT) 51333 58667 62333

Raw Material Requirement for the Production and their source

Steel Sources of
Rolling
Proportion DRI Melting Raw
Mill
Shop Materials
Will be
sourced
Iron Ore in MTPA 1.6 96000 - -
from mines
of Orissa
Locally
Coal in MTPA 1.4 84000 - -
Available
Locally
Dolomite in MTPA 0.05 3000 - -
Available
Sponge Iron in
Will be
MTPA (Will be
0.75 - 60000 - produced in
transferred from
house
DRI Unit)
Locally
Available
Pig Iron in MTPA 0.25 - 20000 -
from the
market

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Locally
Available
Scrap in MTPA 0.10 - 8000 -
from the
market
Billets/Ingots in
MTPA (will be Will be
transferred from 1.00 - - 80000 produced in
Steel Melting house
Shop Unit)

* MTPA – Metric Tonnes per Annum

Measures to increase Productivity

• Maximum Utilization of the Capacity

• Improved Raw materials – Right quality

• Improved working conditions – Cleanliness, lighting, ventilation, etc.,

• Improved Machines (Technology) – Efficient & economic machines

• Provision of Incentives – Productivity linked bonus / Reward etc.

7. QUALITY REQUIREMENT

To specify the various physical and mechanical properties of the finished

product, various tests, both destructive and nondestructive, need to perform.

Major quality requirements

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These process characteristics necessitate a proper manufacturing quality of

cold forging quality wire rods. The important features of these quality
requirements are as under:

• Excellent surface quality ensuring zero defect situation so that forged

components have no defects.

• Good control over Quality to ensure smooth forging process.

• Good control over mechanical properties such as tensile strength and

reduction area to ensure proper cold forgeability and productivity.

• Completely de-scaled surface to avoid forging defects such as scale pits

and resultant surface roughness.

• Suitable metallurgical structure to ensure proper machinability level.

• Good and uniform response to heat treatment since the components are
always treated in bulk

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8. QUALITY ASSURANCE AND QUALITY CONTROL PLAN

Quality assurance of analysis is often demanded

by a wide range of users interested in the
analysis of raw steel or finished steel products.

The most important factor required by any

quality assurance is the accuracy of analysis making it possible for all values
analyzed to meet authorized standards. The second most important factor is the
ease of tracking back to find when, how, by who, and under what conditions or
environments the analysis was made.

In order to satisfy these factors, the above tasks must be standardized and
prepared in writing as guidelines or references. Their contents must provide
steps to make it possible to ensure that the results of analysis will be obtained
by taking the provided steps.

Quality Planning is a critical part of any project. It enables to agree a set of

quality targets with the customer. It then helps to monitor and control the level
of quality produced by the project; ensure to meet the quality targets set.

Following are the Quality Control Plan:

1. Manufacturing stage and analysis position: Standards for the analysis

position and timing at manufacturing stage according to the product.

2. Sampling and analysis instructions: Standards for the elements to be

analyzed, the precision of analysis, and the types of samples required.

3. Analysis method selection: Standards for the selection method of

analysis based on the expected quantities of analysis elements, required
precision of analysis, and required time of analysis.

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4. Analyzer operation maintenance: Standards for the operation,

maintenance, and improvement methods of the analyzer

5. Analysis result reporting: Standards for the means and destinations of

correct analysis results to be reported.

6. Regular Inspection: Inspection once in a day or once in a week.

A Quality Plan helps to schedule all of the tasks needed to make sure that the
project meets the needs of customer. It comprises two parts; the Quality
Assurance Plan lists the independent reviews needed and the Quality Control
Plan lists the internal reviews needed to meet the quality targets. By using
Quality Assurance and Quality Control techniques, one can create a
comprehensive Quality Management Plan for the project.

Quality Plan to set quality targets by:

 Identify Standards and Guidelines

 Evaluate Requirements Analysis Process

 Feasibility Study

 Identifying the customers’ requirements

 Listing the project deliverables to be produced

 Setting quality criteria for these deliverables

 Defining quality standards for the deliverables

 Gaining your customers agreement with the targets set

Using this Quality Plan to monitor and control quality by:

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 Analyzing Test Results

 Production Readiness Review

 Acceptance Test Review

 Identifying the quality control tasks needed to control quality

 Creating a Quality Control Plan, by scheduling the control activities

 Listing the quality assurance activities required to assure quality

 Building a Quality Assurance Plan, by creating an activity schedule

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