Project On Steel Industry For Opm

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 Steps SCHOOL GLOBSYN BUSINESS

03 Sunil Sony, EPGDM-4 2

OPM PROJECT JULY 2009 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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OPM PROJECT JULY 2009

1. PRODUCT

Integrated Steel Plant (Finished Product TMT Bars) Sl. No .

Module

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

Production per Annum

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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OPM PROJECT JULY 2009

 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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OPM PROJECT JULY 2009 •

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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OPM PROJECT JULY 2009



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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OPM PROJECT JULY 2009 

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 Promotion Assistance

by the unit in previous year. It will be disbursed for 10 years or till 50% of Fixed Capital Investment is reached, whichever is earlier.

4. LAYOUT PLANNING

Lay out Planning for the following Facilities:

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OPM PROJECT JULY 2009  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. Sunil Sony, EPGDM-4 9

OPM PROJECT JULY 2009  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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OPM PROJECT JULY 2009

5.

CAPACITY PLANNING

DRI

Steel Melting Shop

Rolling Mill

2 Kiln x 100 TPD

2 Furnace x 8 T

80 MT

Hours per Shift

8

8

8

No. of Shifts in a day

3

3

3

No. of Days in a Year in Operation

300

330

350

Production per Day in MT

200

242

228

Installed Capacity in MTPA

60000

80000

80000

Final Product

Sponge Iron

Billets/Ingots

TMT Bars or Rolled Products

85%

85%

85%

65

35

15

one month stock

one month stock

one month stock

Configuration

Maximum Capacity Utilization No. of Days required for Maintenance in a year Inventory

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. Sunil Sony, EPGDM-4 11

OPM PROJECT JULY 2009

•

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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OPM PROJECT JULY 2009

-

Rolling Mill

4667

5333

5667

51333

58667

62333

Available for Sale -

Rolling Mill (TMT)

Raw Material Requirement for the Production and their source Proportion

DRI

Steel Melting Shop

Rolling Mill

Sources of Raw Materials

Iron Ore in MTPA

1.6

96000

-

-

Will be sourced from mines of Orissa

Coal in MTPA

1.4

84000

-

-

Locally Available

0.05

3000

-

-

Locally Available

-

Will be produced in house

-

Locally Available from the market

Dolomite in MTPA Sponge Iron in MTPA (Will be transferred from DRI Unit) Pig Iron in MTPA

0.75

0.25

-

-

60000

20000

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OPM PROJECT JULY 2009

Scrap in MTPA

0.10

-

8000

-

Locally Available from the market

Billets/Ingots in MTPA (will be transferred from Steel Melting Shop Unit)

1.00

-

-

80000

Will be produced in house

* 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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OPM PROJECT JULY 2009

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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OPM PROJECT JULY 2009

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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OPM PROJECT JULY 2009 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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OPM PROJECT JULY 2009

 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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