for proposed integrated steel plant of 0.7...
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M/s. Mukand Ltd. Pre-Feasibility Report
1
PPRREE--FFEEAASSIIBBIILLIITTYY RREEPPOORRTT For
PPRROOPPOOSSEEDD IINNTTEEGGRRAATTEEDD SSTTEEEELL PPLLAANNTT ooff 00..77 MMTTPPAA
By
M/s. MUKAND Ltd. At Village- Kanakapur, Taluka & District- Koppal,
Karnataka
Conducted & Prepared By
GREEN CIRCLE, INC.
Integrated HSEQR Consulting Engineers, Scientists & Trainers (MoEF Recognized Environment Laboratory)
(An ISO: 9001, 14001, OHSAS: 18001 Certified Organization & GPCB approved Environment Auditor – Schedule II)
Gujarat High Court Stay Order for QCI NABET No. C/SCA/10311/2012 dated 24.01.2013
Corp. Office & Environmental Research Laboratory: Green Empire (Anupushpam), Above Axis Bank, Nr. Yash Complex, Gotri Road, Vadodara-390 021
(Gujarat) India Tel: 0265-2371269.
Mumbai office Flat No 6 ,Ground Floor,Shakuntala Niwas, M G Road,Borivali (E),Mumbai- 400066 Tel : 022-28943090 /60
www.greencircleinc.com ALSO AT
BENGALURU RUDRAPUR NEW DELHI HYDERABAD PUNE RAIPUR KOLKATA
GOA
OVERSEAS AUSTRALIA OMAN KUWAIT AFRICA VIETNAM
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TABLE OF CONTENTS
LIST OF TABLES
Sr. No. Particulars Page No.
1 EXECUTIVE SUMMARY 4
2 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT 5
3 PROJECT LOCATION AND PROJECT DESCRIPTION 9
4 PLANNING CONCEPT 28
5 PROPOSED INFRASTRUCTURE. 30
6 R & R PLAN 31
7 PROJECT SCHEDULE AND COST ESTIMATE 31
8 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION) 32
Table.
No. Particulars Page No.
1.1 Proposed Production Capacities 6
3.1 Plant capacity & equipments 14
3.2 Raw Material Consumption 21
3.3 Water Balance Table 23
3.4 Power Requirement 23
3.5 Waste (Hazardous & Non-Hazardous) details 24
3.6 Control Equipments for Air Pollution 24
3.7 Wastewater Sources and its Treatment 25
4.1 land use pattern of the project site 28
7.1 Estimated Project Cost 32
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LIST OF FIGURES
Fig.
No. Particulars Page No.
3.1 Figure 3.1: Location Map of the
Project site 11
3.2 Google image of the Proposed
Project Site 12
3.3 Schematic diagram/ Layout plan of
the proposed project 13
3.4 Schematic Process Steps for Iron &
Steelmaking 20
3.5 ETP plant layout similar to the
existing interlinked project (Unit-I) 26
3.6 STP plant layout similar to the
existing interlinked project (Unit-I) 27
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1.
EXECUTIVE SUMMARY
Mukand Ltd. (Formerly known as Mukand Iron & Steel Works Ltd.), is one of the largest
producer of ‘Alloys and Special Steels’ and Stainless Steels in the country meeting the
requirements of Original Equipment Manufacturers (OEM) for automobiles, auto-component
industries as also of railways, defence, transportation and engineering industries.
M/s. Mukand Ltd. has proposed to set up an Integrated Steel Plant capacity in 0.7 MTPA at
Village- Kanakapur, Taluka & District- Koppal, Karnataka.
The total land area required for the proposed project is approximately 300 acre. The
proposed project site is easily approachable and is located near the National Highway No.
63. The coordinates of the site is 150 19.720’ N and 760 15.540’ E.
In Integrated Steel Plant and basic raw materials required for its operation are Iron Ore,
Coking Coal, Limestone and Dolomite. It is proposed that in the Integrated Steel Plant Billets
and Blooms in sizes of 160 x 160 mm to 280 x 320 mm shall be produced. Cast Billets will be
rolled into Wire Rods and Bars. It is also proposed to roll heavy section bars from Blooms.
Total fresh water requirement for the project will be 18 MLD, which will be sourced from
downstream of Tungabhadra Reservoir. Approval has been obtained vide Government of
Karnataka letter no WRD.15/MTP/2013 dated 22 December 2015. Power requirement for the
proposed project will be 60 MW, out of which 30 MW will be sourced from the proposed
Captive Power Plant by captive power generation from waste gases of Blast Furnaces and
Coke Ovens and 30 MW from KPTCL/GESCOM.
The project will generate direct employment both during construction of about 1000 persons
and during operation i.e. post construction phase locally and regionally, it is expected that
730 Managers, Supervisor, Skilled and Unskilled workers will be required.
Appropriate pollution control measures will be installed to abate air pollution. Waste water
generated from the process will be reused in the process or used in gardening and dust
suppression after proper treatment. There will be significant socio-economic and
infrastructure development due to this project. Overall the project will have a positive
impact on socio-economic environment.
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2.0 INTRODUCTION OF THE PROJECT /BACKGROUND INFORMATION
2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT
M/s. Mukand Ltd. proposes to set up an Integrated Steel Plant of 0.7 MTPA capacity in
Village- Kanakapur, Taluka & District- Koppal, Karnataka.
Established in 1937, Mukand Ltd. (Formerly known as Mukand Iron & Steel Works Ltd.), is one
of the largest producer of ‘Alloys and Special Steels’ and Stainless Steels in the country
meeting the requirements of Original Equipment Manufacturers (OEM) for automobiles, auto-
component industries as also of railways, defence, transportation and engineering industries.
It is also the largest manufacturer of stainless steel long products, bulk of which is exported to
international markets. Mukand is a part of the Bajaj Group and Mr. Niraj Bajaj is the Chairman
and Mr. Rajesh Shah is the Co-Chairman of the company.
Mukand Ltd. desires to set up an Integrated Steel Plant of capacity 700,000 Tons / Year of
rolled long products in phases. However, initially the rolling capacity will be 550,000 Tons /
year. The Steel Plant shall be erected in modular form so that the capacity can be increased
in a phased manner. Mukand Ltd. desires to set up the plant in Karnataka next to the existing
Hospet Steels Plant. This will facilitate in transportation of the basic raw materials viz. Iron Ore,
Metallurgical Coke, Coal etc.
Presently Mukand produces more than 400 grades of steel and is approved by the original
automobile equipment manufacturer to supply steel to the manufacturers of Auto
components, High Tensile Fasteners, Cold Forge components, Industrial Bearings, Automobile
Coil Springs, Industrial Chains and Bright Bar industries.
The company is ISO 9001, ISO 14000 and ISO/TS 16949 compliant and is among one of the
leading practitioners of Total Productive Maintenance (TPM) system, which is increasingly
being adopted by all major manufacturing companies worldwide. Mukand’s products are
manufactured to international quality standards.
2.2 BRIEF DESCRIPTION OF THE NATURE OF THE PROJECT.
M/s Mukand ltd. has proposed to set up Integrated Steel Plant of 0.7 MTPA capacity in
Village- Kanakapur, Taluka & District- Koppal, Karnataka. The process route envisaged is Blast
Furnace, E.O.F, Ladle furnaces, Vacuum degassing, Continuous Casting Machine, Wire Rod
cum Bar mill.
This liquid iron from the Blast Furnace in the form of hot metal shall be poured in the Energy
Optimizing Furnace (EOF) and necessary Ferro alloys and other ingredients added in the
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Ladle Furnaces and thereafter cast through the continuous casting machine there by
manufacturing various grades of steel. These Blooms and Billets shall then be rolled to the
required sizes and forms.
The proposed Integrated Steel Plant of 0.7 Million MTPA capacity shall be set up in Village-
Kanakapur, Taluka & District- Koppal, Karnataka on a total land area of approx 300 acres.
The company intends to use Iron ore which is abundantly available in Bellary-Hospet sector
and imported and indigenous coal from South Africa, China, Indonesia and Singareni
Collieries Company Limited (SCCL), Andhra Pradesh.
2.3 Production Capacities of the proposed project:
Mukand Ltd. has proposed to set up a Integrated Steel Plant of 700,000 Ton / Year capacity
of rolled long products in phases. However initially rolling capacity will cater to 550,000 Tons/
Year.
Table 1.1 Production Capacities Sr. No.
Product Phase I (MT/Year)
Phase II (MT/Year)
Total (MT/Year)
1 Wire Rods Cold heading wire rods, low carbon/Boron steels, special steel wire rods i.e. semi free/free cutting/Alloy steels/high carbon/mild steel rods
550,000 550,000
2 Bar Products Special steel bar products
150,000
150,000
Total 550,000 150,000 700,000
2.4 NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND REGION.
One of the most useful and versatile material, steel is considered to be the backbone of
human civilization. As the steel industry has tremendous forward and backward linkages in
terms of material flow, income and employment generation, the growth of an economy is
closely related to the quantity of steel used by it.
Steel has been one of the oldest industrial sectors in India. It has also been the first to get
liberalized and controls lifted partially in 1991. There have been massive capacity additions
by all steel majors and several new groups made foray into primary and secondary steel
market in the first phase of liberalization in early 90s. The major costs in steel making are the
costs of Iron Ore, Metallurgical Coke, Limestone, Coal and Power. While the country is rich in
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iron ore and limestone, its quality of coal is poor and power costs are high. The industry
enjoys inherent advantages in terms of availability of raw material and cheap labour.
India is the 3rd largest producer of steel in the world accounting for production of 89.58
million tons of crude steel in the Calendar year 2015. It also holds the third position in
consumption of steel. Thus there is great potential of steel industry in India. Honorable Prime
Minister Shri Narendra Modi has envisaged the growth of steel sector to attain a production
capacity of 300 Million Tonnes by 2020, hence in order to achieve this capacity, it is essential
to create the facilities based on local resources to produce steel.
In view of these facts, the proposed project is envisaged as a Integrated Steel Plant with
Coke Oven plant, Blast Furnace, E.O.F., Ladle Furnaces, Vacuum Degassing, Billet/Bloom
Continuous Casting Machine, Wire Rod cum Bar Mill and Captive Power Plant. All these
production technologies make the project a better energy efficient project due to which a
substantial amount of Green House Gas (GHG) emissions would be avoided or reduced than
the baseline emission.
2.5 DEMAND AND SUPPLY GAP
The scenario of Steel Industry is clearly looking upward and the latest data on Steel Industry is
as follows:
An overview of Indian Steel sector-
• Rapid rise in production has resulted in India becoming the 3rd largest producer of
crude steel and the largest producer of Sponge Iron or DRI in the world.
• As per the report of the Working Group on Steel for the 12th Plan, there exist many
factors which carry the potential of raising the per capita steel consumption in the
country, currently at 59.4 kg per annum in 2014. These include among others, an
estimated infrastructure investment of nearly a trillion dollars, a projected growth of
manufacturing from current 8% to 11-12%, increase in urban population to 600 million
by 2030 from the current level of 400 million, emergence of the rural market for steel
currently consuming around 10 kg per annum buoyed by projects like Bharat Nirman,
Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among others.
• When the global steel industry is witnessing slow growth, India is the only exception
with 6.7% growth in demand in 2015. If Indian Economy is expected to grow at 8-9% in
coming years, the demand potential for steel is very high. The High Level Committee
on Manufacturing (HLCM) under the Hon. Prime Minister has set a target of raising
annual crude steel making capacity to 300 million tonnes by 2025 -26.
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Major Objectives of the National Steel Policy 2012 are as follows:
• To attract investments in Indian steel sector from both domestic and foreign sources and
facilitate speedy implementation of investment intentions on board so far so as to reach
crude steel capacity level of 300 million tonnes by 2025-26 to meet the domestic
demand fully.
• To ensure easy availability of vital inputs and necessary infrastructure to achieve a
projected production level of 275 million tonnes by 2025-26.
2.6 IMPORTS V/S. INDIGENOUS PRODUCTION
Iron ore and non-cocking coal are available in abundance in India, but coking coal
reserves are not very much. Thus steel production facilities added during the last 10 years
in India are well established based on Coal Rotary Sponge Iron Kilns. Prior to
implementation of the Sponge Iron Kiln based steel making the gap between demand
and supply was fulfilled by import of steel. The Chinese manufacturers are giving tough
competition to Indian steel producers because of their cheaper production cost.
Therefore, in order to face the competition being poised by the Chinese manufacturer, it
is important to provide good quality washed coal to existing Sponge Iron Plants in India
and also to provide them with good quality Iron Ore / Pellets.
In view of this, it is necessary to have good quality washeries. The Indian infrastructure
sector is likely see a massive growth due to increasing economic status.
2.7 EXPORT POSSIBILITY
Export of Steel is always possible, the Government of India is also encouraging export of
steel, and however most of the quantity will be domestically consumed. The world steel
market is for about 1500 Million Tonnes, out of which about 50% is being produced by
China. But, China is in the process of cutting excess capacity and reducing its
production in coming years. It offers a room for Indian steel manufacturers to export. by
increasing its production in an energy efficient manner.
2.8 DOMESTIC/EXPORT MARKETS
While the demand for steel will continue to grow in traditional sectors such as infrastructure,
construction, housing, Automobiles, steel tubes and pipes, consumer durables, packaging,
and ground transportation, specialised steel will be increasingly used in hi-tech engineering
industries such as power generation, petrochemicals, fertilizers, etc. The new airports and
railway metro projects will require a large amount of stainless steel.
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Domestic market with real estate, infrastructure project, industrial projects will require steel
which is estimated to be around 80 million tonnes per annum. The estimated growth in
infrastructure is likely to increase the demand of steel to more than 150 million tonnes by the
year 2020. In view of this it is required advance planning be made for creating the facility
and infrastructure to meet this demand. The domestic market as well as export market both
will require good quality steel, produced with minimum energy consumption and minimum
cost of production.
2.9 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT.
The total manpower required for the proposed project will be around 730 permanent
executives during operation of the Plant. Employment generation due to the project is direct
& indirect. Local people will be employed as per their qualification and skills.
Phase No of Employees
Construction phase 1000 (tentatively inc. contract persons)
Operation phase 730 plus Persons on Contract
3. PROJECT DESCRIPTION:
(i) Project Location & Connectivity
M/s Mukand Limited has proposed to set up the Integrated Steel Plant of 0.7 MTPA
capacity in Village- Kanakapur, Taluka & District- Koppal, Karnataka. The total land area
required for the proposed project is approx. 300 Acre. The coordinates of the site is 150
19.720’ N and 760 15.540’ E.
The proposed project site is easily approachable. The nearest Highway is NH-63
(adjacent to the Plant) and NH-13 (13.5 Km to the East). The nearest cities are Koppal
and Hospet, which are situated at a distance of 11 km and 16 km in the west and east
directions respectively. The nearest Railway station is Ginigera at a distance of 1 km, NW.
Railway line is 0.5 km from the Plant in northern direction. The site is about 11 kms by rail
from Koppal. The Tungabhadra reservoir is at a distance of 5.2 km in south western
direction. Nearest Airport is Hubbali which is 125 Km in West. The company has chosen
this site mainly due to its proximity to raw material sources and also better access to
market. Also four Sea ports are within 400-700 km distance.
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(ii) Topography (along with map): Topography of the area is plain and undulating at some
places. Topographic map of the study area is enclosed as Annexure Toposheet.
(iii) Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including
area under CRZ)), shortest distances from the periphery of the project to periphery of the
forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from
the HFL of the river), CRZ, In case of notified industrial area, a copy of the gazette:
The Land acquired for the proposed project is arid and rocky will be converted for
industrial use.
There are no forests, national parks, wild life sanctuaries and eco sensitive zones situated
in the 10 km study area.
(iv) Soil classification: The proposed project site has rocky soil. The Taluka has some Rocky
Mountains with xerophytic vegetation. The type of rocky soil in the taluka is clayey-loamy
in scattered areas.
(v) Climatic data from secondary sources:
Koppal district experiences a semi-arid type climate, characterized by hot summer and
low rainfall. It is cool and pleasant during major part of the year except during the
summer months of March to middle of June. The coldest period is December to January
minimum temperatures reaches up to 16°C and maximum reaches 45°C during hot
summer during which period the district is characterized by dryness for the major part of
the year. Because of less rainfall the monsoon season is pleasant. The annual normal rain
fall is 571.92 mm and normally rain commences from June and continues up to
November. Heavy rainfall is received during the months of September and October,
about 65% of which is from south west monsoon with normal average rain days of 40 in a
year. (Source: A Report of CGWB)
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3.1 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC LOCATION, AND PROJECT
BOUNDARY & PROJECT SITE LAYOUT) WITH COORDINATES.
Figure 3.1: Location Map of the Project site
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Figure 3.2: Google image of the proposed project site covering 5 Km radius
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Figure 3.3 Schematic diagram/ Layout plan of the proposed project
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3.2 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECT IF ANY.
M/s Mukand Limited has proposed to set up an Integrated Steel Plant of 0.7 MTPA capacity
in Village- Kanakapur, Taluka & District- Koppal, Karnataka. The Project shall have MBF, Coke
Oven Plant, EOF, Ladle Furnace, Vacuum Degassing, Billet & Bloom Caster, Wired Rod/Bar
Mill, Sinter Plant and Captive Power Plant (2x15.0 MW).
3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED
SITE, PARTICULARLY THE ENVIRONMENTAL CONSIDERATIONS GONE INTO SHOULD BE
HIGHLIGHTED:
Since the selected site is strategically located, no alternate site has been considered for the
proposed project.
The project area is indicated in the Layout Plan/Schematic Diagram, which has been
earmarked for industrial use.
3.4 PROJECT DESCRIPTION WITH PROCESS DETAILS
3.4.1 COMPONENTS OF STEEL MANUFACTURING PROCESS:
Table 3.1: Plant capacity & equipments (for 700,000 MT/year)
Sr. No.
Main Equipment Capacity For Phase I
(Nos)
For Phase II
(Nos)
Total (MT)
Per day
(phase I+ phase II)
Remarks
1. Blast Furnace 2x450M3 1 1 2200 60-65%Sinter
feed + P.C.I 2. DRI - - - 300 Purchased from
local plant 3. Coke Ovens - - - 700 Balance
requirement will be purchased
4. E.O.F 70T 1 - 2200 5. Ladle furnace 2x70MT/1
5MVA 1 1 - With alloy feeding
systems and 5 deg Celsius /min heating rate
6. Vacuum degassing
2x70T 1 1 -
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7. Billet/Bloom Caster
2x12/20 radius to
cast 160x160m
m to 4 strands
1 1 - Sizes depending upon product mix for wire rod / Bar mill
2x280x320mm 4 strands
8 Wire rod Mill/Bar
Mill 120 MT/Hr 1 2200T 700,000 TPA of
Wire Rods & Bars 9 Sinter Plant 2x50 M2 1 1 2400
Tonnes -
10 Oxygen Plant 2x175 Tonnes
1 1 350MT per day
For EOF shop & 2% enrichment
11 Power Plant 2x15MW 1 1
1
30MW To produce power from waste gases
The iron ore with high Iron content mixed with metallurgical coke is charged into the blast
furnace from the top along with fluxes in a predetermined proportion. The heated air rising
up from the bottom starts combustion of the coke to yield carbon monoxide. The carbon
MANUFACTURING PROCESS
3.4.1 Pig Iron Plant
Major raw materials for the pig iron manufacturing process are iron ore, coke and small
quantities of dolomite, lime stone, etc. The raw material received in the plant is handled
using mobile equipment and conveyor system. All the required raw materials are stored in
day bins for 24 hr requirements. Coke below 50 mm is conveyed to a screen for further
screening of 6 mm and coke size between 6-15 mm is conveyed back to one of the day
bins. A weighing and batching system ensures the dosing of 6 to 15 mm coke along with ore.
Fluxes, Manganese ore and quartzite feeds are controlled through vibro feeder. Depending
on the sequence signal, the raw material is discharged to charging conveyor to be dropped
into rotary hopper.
Blast Furnace (BF) is the basic unit in a pig iron plant. The blast furnace process consists of
charging iron ore and coke (as fuel), lime stone and dolomite (as fluxing material) into the
top of the furnace and blowing preheated air near the bottom for burning the coke and
providing the heat required for melting of the charge coming down. The hot air is generated
in Metallic Blast Pre-heaters (MBPs) and introduced into the blast furnace through tuyeres, at
the bottom.
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monoxide gas that rises up the column of the charge reduces the iron oxide. The reduced
iron on reaching the bosh starts to melt due to the high temperature encountered in this
zone into molten iron and slag and drops into the hearth of the furnace. In the hearth the
slag and metal get separated. The molten iron accumulates at the bottom and on top of it
molten slag layer settles. At regular intervals the accumulated molten metal is tapped in
ladles and sent for steel making. The molten slag is granulated with high-pressure water jet
and collected separately. The top gas from MBF units is conveyed to Gas Cleaning Plant
(GCP) where dust is removed from the top gas by wet scrubbing system. The flow sheet for
Pig Iron and Steel making is shown in Figure – 3.4.
3.4.2 Sinter plant
To utilize the fines generated during mining and processing of calibrated iron ore, a sinter
plant shall be set-up. Sinter plant shall also use all waste material of the plant i.e. coke fines,
mill scales etc. sinter is known to give higher productivity and lowers the consumption of
coke in the blast furnace.
3.4.3 Coke ovens
Productivity is decided by coke input and as such it is proposed that coke shall be produced
at the plant site by bringing coal. Coke oven plant is proposed to be set up for blast
furnaces. The coke ovens shall be non-recovery type and shall produce with sized dry coke
of 25-80 mm size (mean size of 50 mm). The coke produced shall be with stamp charging
technology so as to give higher density thus leading to higher productivity of the blast
furnaces and lower consumption of 500 kg/MT of gross and dry coke.
3.4.4 Proposed Blast Furnace Plant
The blast furnace shop will be provided with a conveyorized stock house with screening
facilities for coke and iron ore. All the charge materials will be weigh-batched in
predetermined quantities automatically and charged to the blast furnace through a
conveyor system. The furnace is provided with bell less top charging system, hot blast stoves
of internal combustion chamber type, cast house with one tap hole for iron and one slag
notch. A fleet of 45 tonnes open top hot metal ladles is provided. The hot metal produced in
the Blast Furnace shall be transported to Steel Making shop by ladle transfer car. Surplus hot
metal, if any, shall be cast into pigs in existing Pig casting Machine. Slag produced from Blast
Furnace shall be granulated in slag granulation plant. A cast house slag granulation plant
with Grab bucket crane for loading of granulated slag into trucks shall be provided. An
emergency dry slag pit shall be provided to handle emergency situations. The blast furnace
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gas will be cleaned in dust catcher and gas cleaning plant and distributed to various
consumers.
It is proposed to install two ‘S’ type casters to cast (Billets) of size 160 x 160 mm and (Blooms)
of 280 x 320 mm size. All products shall be cast with ladle to tundish and tundish to mould
shroud with mould flux lubrication. The casters, shall be of 4 strands so as to cast heat in 50 -
55 min cycle with high speed casting. The casters shall be designed with turret to have long
sequences and flying tundish practice. Casters shall have Auto Mould Controller and Electro
Steel Manufacturing Process
3.4.5 Energy Optimizing Oxygen Furnace
The oxygen process is the most common process for producing steel. The Energy-optimizing
oxygen furnace (EOF) involves this process using combined submerged (bottom) and
atmospheric (top) blowing. The hot metal from KSL unit is taken into the EOF; the 20-30%
scrap is then added into the hot metal. The necessary fluxes (ferro-alloys, calcined lime, iron
ore) are also added to the bath. Oxygen is blown into the bath through water-cooled lances
using combined bottom and top blowing.
EOF will be designed to have a blowing time of less than 20 minutes and overall cycle time
less than 40 minutes per heat. During blowing operation, oxygen oxidizes iron into iron oxide
and carbon into carbon monoxide. The iron oxide immediately transfers the oxygen to the
tramp elements, which leads to formation of reactive slag. As blowing continues, there is a
continuous decrease of carbon, phosphorous, manganese and silicon within the melt. The
refining process is completed when the desired carbon content is attained. The steel is
tapped into the Ladle Furnace by a transfer trolley. The slag is discharged into the slag pot.
3.4.6 Ladle furnace and Vacuum Degassing Unit
The Ladle furnace acts as a buffer between EOF and Continuous Casting Machine. It is
utilized to maintain high levels of steel cleanliness, desulphurisation and accurate
temperature control. The required temperature is maintained with the help of small
electrodes, while the melt is homogenized by introduction of inert nitrogen/ argon gas. The
ladle is then lifted and taken to Vacuum Degassing unit. Vacuum Degassing refines the
molten steel by removing unwanted hydrogen and nitrogen gases. The molten metal ladle
from LF is placed under vacuum generated by multiple stage steam ejectors. After sampling
of the steel and temperature measurement, the ladle is shifted to continuous casting
machine. The Vacuum-degassing unit utilizes steam generated by a boiler run by furnace oil.
3.4.7 Continuous Casting Machines
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Magnetic Stirrer to achieve superior internal quality of Billets / Blooms. Large Size Tundish with
T shape and dams shall be designed to get high level of cleanliness with no entrapment of
non-metallic macro inclusions. Caster shall cast 20 heats / day with desired quality level so
that no Billet conditioning is required before rolling.
3.4.8 Billet / Bloom Inspection Area
Sample cutting and inspection facility to control the quality shall be provided in the Caster
Bay. This facility shall provide constant feedback to the shops.
3.4.9 Wire rod / Bar Mill facility (1 Nos)
It is proposed to roll 60,000 MT per month of Billets of 160 x 160 mm in Bar cum Wire rod mills (1
nos). The mill shall be designed to roll 5.5 to 36.0 mm dia. size in coil form of 2 MT each and
20mm to 60mm dia. in straight lengths.
A walking beam type furnace with heating rate 120 MT / hour having 10.5 Meter length to
accommodate 160 x 160 mm cross section shall be designed. Mill shall roll wire rods / bars at
an average of 110 MT / hour. At 80 % utilization of the Mill, it shall produce 2200 MT / day of
finished products.
The Wire rod mill shall have roughing, intermediate and two finishing blocks to finish from 5.5
to 20mm dia. through Block Mill and balance through Garret route.
Mill shall be designed to have 80 to 100 m walking beam type cooling bed to roll 20 mm to
60mm dia. bars in straight lengths. Cold shears shall cut the bars in specific lengths.
Mill shall have conveyer to inspect end cuts, strap and weigh the coils before unloading for
final dispatch. As such, no off line activities shall be required for handling of coils.
Part of the product, which require heat treatment shall be transferred to heat treatment
section.
Bars thus produced which need crack detection / MPI test shall be shifted to the Bar Mill
Inspection area for descaling (by straightening), magnaflux particle testing, other inspection
and final strapping before dispatch.
3.4.10 Lime Kiln
To produce high quality steel for stringent application, good quality lime is required for the
steel Plant. The consumption shall be 150 MT / day, hence it is proposed to have 2 Kiln of 100
MT / day. Lime stone with 53 – 55 % CaO content shall be converted to Lime with 92 % min.
CaO and 4 % Max Loss Of Ignition.
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3.4.11 Captive Power Plant
It is proposed to set up a power plant by utilizing waste gases of coke ovens and blast
furnaces to produce 30 MW power by using waste gas recovery boilers and turbines. This
shall supplement the power drawn from the state electricity grid. The process flow diagram
of Power Plant is enclosed as Annexure III in additional Annexures.
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Fig. 3.4 - Schematic Process flow for Iron & Steelmaking
Blooms /Billets Billets
DRI MBF Return Scrap
Energy Optimizing Furnace (EOF)
Ladle Furnaces with Alloy Feeding / Injection
Vacuum Degassing
Continuous Casting Machine
Continuous Bar Mill
Wire Rods /Coils / Straight Lengths
Round Bars
Dispatch
Iron Ore Coal
Iron Ore Coke Flux
Hot Metal
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3.5 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY LIKELY SOURCE MARKETING
AREA OF FINAL PRODUCT/S,MODE OF TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT.
Raw material- Requirement, Storage & Handling System
The proposed requirement of raw materials in the manufacturing of steel units is detailed in
the Table below.
Table – 3.2 Raw Material Consumption
Sr. No. Raw Material Quantity (Tonnes)/Day
1. Iron Ore 1,581,300 MT/Year 2. Coking Coal 350,000 MT/Year 3. Limestone 200,000 MT/Year 4. Dolomite 70,000 MT/Year
Miscellaneous small quantities of Quartz, Coke breeze etc. shall also be required and the
same shall be sourced suitably.
3.5.1 Sources of Raw Materials
The major raw materials as indicated above are iron ore, limestone and coke. The iron ore
mines in Bellary-Hospet area are the main source for iron ore, which shall be transported by
road to the plant. Limestone will be brought from Bagalkot, Karnataka (Approx. 200 km) by
road. Coke shall primarily be imported and transported from the nearest port by road. Other
required raw materials will be obtained locally and transported by road to the plant.
3.5.2 Receipt, Storage and Handling of Raw Materials
Raw materials received in tripper trucks/road dumpers will be unloaded either at designated
storage area of respective material or in tripper truck unloading pit directly. Raw materials
unloaded in storage area will be stacked in heap by bulldozers. Reclaiming of raw materials
from stacked heap will be carried out by pay loaders for transportation to tripper truck
unloading pit by tripper trucks/road dumpers. Onward transportation of raw materials from
the above pit to BF stock house will be done through conveyor belts.
The raw materials transported from storage area will be distributed into respective bunkers
through a reversible shuttle conveyor belt envisaged at the top of stock house. The holding
capacity of bunkers will be adequate to cater to 2-shifts requirement of raw materials for
blast furnace. Screening of coke, nut coke and iron ore will be carried out in the BF stock
house. Screened coke, nut coke, iron ore and additives will be conveyed to blast furnace
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top through weigh hoppers and charging belt conveyors.
Fines collected from screens in BF stock house will be stored in a separate fine storage
building by belt conveyors. Fine coke (0-25) mm will be further screened in the fine collection
building for coke to segregate coke of 0-6mm & 6-25 mm. Nut coke (6-25mm) will be sent
back to BF stock house through storage yard by trucks whereas fines (0-6 mm) will be
disposed off by truck.
For transportation of raw materials a covered conveyor from the storage yard to the stock
house is proposed.
The raw materials required for the production of the sponge iron are the iron ore fines, coal,
limestone and bentonite. The Fe content of Iron ore should preferably be 65% and above
with Gangue content below 5%. In respect of coal the fixed carbon should be 57% or higher,
with ash not more than 15%. Limestone, which is used as a desulphuriser, should have a
Calcium oxide content of above 45%.Trucks will be used daily for the transportation of raw
materials and finished products.
3.6 RESOURCE OPTIMIZATION/RECYCLING AND REUSE ENVISAGED IN THE PROJECT IF ANY
SHOULD BE BRIEFLY OUTLINED:
The waste water generated from the process will be treated as per suitable technique used
in Effluent Treatment Plant. Cooling tower and Boiler blow down water will be continuously
re-circulated in the cooling water circuits, heat exchangers and discharged to the guard
pond. DM backwash, cooling tower and boiler blow down will be neutralized in a
neutralization tank and used for gardening and dust suppression. Domestic effluent will be
treated in sewage treatment plant.
3.7 AVAILABILITY OF WATER AND POWER AND THEIR SOURCES
3.7.1 WATER REQUIREMENT
Total water requirement for the proposed project will be 18 MLD. Source of Water is from
downstream of Tungabhadra Reservoir. Tungabhadra River is a perennial river and caters to
the need of irrigation and potable water. Water from downstream of reservoir will be drawn
within the sanctioned capacity of 18 MLD by the Government of Karnataka’s letter no.
WRD.15/MTP/2013 dated 22 December 2015.
A new reservoir capacity of 650,000M3 is proposed to be constructed.
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Table 3.2 Water Balance Table
Sr. No. Type of use Water requirement
(M3/Day)
1. Domestic, if any 233
2. Industrial a. R.O/D.M
233 b. Boiler c. Process 2097
d. Cooling Tower (fresh) 3262
e. Cooling Tower (Reuse) 233
f. Other activities (including washing) 408
3. Total Ind. Water(Fresh) 5534
4. Total Ind. +Domestic Water (Fresh) 5767
5. Total (Reuse) 233
6. TOTAL WATER 18000 7. Waste water Generation, m3/Day 583
The total Waste water generation will be 583 KLD. Domestic & Trade effluents shall be
treated in Sewage Treatment Plant & Effluent Treatment Plant similar to the interlinked
Unit. Treated water will be reused for process, dust suppression and gardening purposes.
There will be no discharge of water outside the plant premises.
3.7.2 POWER REQUIREMENTS, SUPPLY AND SOURCE:
The electrical and instrumentation has been so designed to meet the continuous operation
of the plant. As the plant will be running 24 hrs in three shifts, the necessary power supply,
illumination, instrumentation and control system is envisaged.
Total Power requirement will be 60 MW. Out of which 30 MW shall be met by captive power
generation from waste gases of Blast Furnaces and Coke Ovens and rest of the 30 MW will
be sourced from the state utility grid (KTPCL/GESCOM).
Three no. of D.G. sets of 1250 KVA each will be used for power back-up.
Table 3.3 power requirement
Sr.
No. Source
Phase I Phase II Total
1 Captive Power Plant 15 MW 15 MW 30 MW
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3.8 WASTE GENERATION AND THEIR MANAGEMENT AND DISPOSAL
3.8.1 SOLID WASTE MANAGEMENT:
The various types & quantities of solid and hazardous wastes generated from the plant are
indicated in Table – 5.4. Hazardous wastes generated are handled as per Hazardous Waste
Management & Handling Rules, 2008.
Table 3.4 Waste (Hazardous & Non-Hazardous) details:
S. No
Type of waste
Classification as per
Schedule I
Proposed Quantity
Disposal
1
Used Oil 5.1 14 KL/Annum
Sold to HW Authorized parties.
Oil Soaked Cotton Waste
5.2 0.3 MT/Annum Sold to HW Authorized parties.
2 ETP Sludge NA - ETP Sludge is used in Blast Furnace
3 Slag Non-Hazardous 1,40,000 TPA
Reuse for Brick making/road making/dump in low lying areas/sold to authorized parties.
3.8.2 DETAILS OF THE CONTROL EQUIPMENTS FOR AIR POLLUTION (TABLE 3.5)
Sr. No. Source Capacity Control Equipments Performance
Efficiency
Stack Ht. (m)
1 MBF 2x450m3 One Wet type GCP having dust catcher, saturator, 2 stage venturi scrubber, cyclone separator & sludge
97% 30
2 Total Demand 33 MVA 27 MVA 60 MVA
3 Power (Max demand)
from Grid-
KPTCL/GESCOM
18 MVA 12 MVA 30 MVA
4 Consumption (million
units/month)
18 12 30
5 D.G. Set (Back-up) 1250x3 KVA - 1250x3 KVA
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thickener.
2 Energy Optimizing Furnace
70 T Wet Type GCP having Quench Chamber, Venturi, Cyclone Separator, Sludge Thickener.
97% 39
3 Rolling Mill Reheating Furnace
- Chimney
- 54
4 Boiler in Vaccum Degassing
70 T Chimney
- 52
5 Power Plant Boiler
2x15 MW Chimney - 47
3.8.3 INDUSTRIAL WASTE WATER MANAGEMENT:
TABLE 3.6 WASTEWATER SOURCES AND ITS TREATMENT
Waste Water Sources Treatment and Reuse
DM Plant/ Softner Plant
Regenration
Entire effluent is recycled to Pig Casting Machine
and Slag granulation Process after neutralization,
clarification and aeration
Filter Backwash Recycled to slag granulation process
Energy Optimising furncace
(Evaporation/Blowdown)
Blowdown is collected in Guard pond and reused
for dust suppression & green belt development
Gas Cleaning Plant
(Evaporation/Blowdown)
Blowdown is collected in Guard pond and reused
for dust suppression & green belt development
Vaccum Degassing
(Evaporation/Blowdown)
Blowdown is collected in Guard pond and reused
for dust suppression & green belt development
Machine cooling / Mould
cooling
(Evaporation/Blowdown)
Blowdown is collected in Guard pond and reused
for dust suppression & green belt development
Waste water from Rolling Mill Blowdown is collected in Guard pond and reused
for dust suppression & green belt development
Sanitary Waste Treated in STP and used for green belt
development within the plant premises
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Figure 3.5: ETP plant layout
The Wastewater from canteen is screened in Screen chamber to remove coarse solids
and floating matter in float trap before taking sewage to the aeration tank Sewage is
Pumped to Aeration Tank using submersible pump. In aeration tank sewage is treated
with biological method using extended aeration activated sludge process where
Sewage is treated with microbes which eat up organics and reduce organics (BOD/
COD) in sewage. The oxygen required for growth of microorganism is supplied by surface
aerator. The growth in microbial population takes place and biofloc are formed. The
biofioc with treated sewage is taken to secondary settling tank where biofloc settles and
clear water overflows to secondary treated sewage storage tank. To keep the microbial
population in aeration tank constant sludge from secondary settling tank is recalculated
Sewage Treatment Plant
Process
The sewage treatment plant is designed for treating the sewage and canteen
Wastewater. The system adopted for sewage treatment is extended aeration activated
sludge. The system consists of bar Screen – Manually Cleaned (near Canteen), Float Trap
(Near Canteen), Sewage Sump, Aeration Tank, Secondary Setting tank, Secondary
Treated Water Storage Tank.
System Working
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to aeration tank using Sludge Recirculation pumps. Excess bio-sludge is dried on sludge
drying beds. The treated sewage from secondary storage tank is disinfected in Storage
Tank prior to taking for reuse for reuse for Gardening.
Figure 3.6: STP plant layout
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4.0 PLANNING CONCEPT (TYPE OF INDUSTRIES, FACILITIES, TRANSPORTATION ETC) TOWN AND
COUNTRY PLANNING/DEVELOPMENT AUTHORITY CLASSIFICATION:
4.1 BASIS OF PLANNING:
The active manpower estimate is based on production technology proposed level of
mechanization and automation, the layout of the plant, operating shifts for the various plant
units etc.
4.2 POPULATION PROJECTION:
There will be temporary population projection due to direct and indirect employment to the
nearby people.
The Project area is surrounded with Sponge Iron, Steel & other industries viz. Hospet Steels Ltd.
(Integrated Steel Plant), Xindia Steels Limited (Pellet Plant), Harekrishna Sponge (Sponge Iron
plant), HRG (Sponge Iron plant), Dhraudesh (Sponge Iron plant), Hospet Ispat (Sponge Iron
plant), Scan Steels (Sponge Iron plant), Ultratech (Cement Plant), Kirloskar Ferrous Limited
(Pig Iron Plant).
4.3 LAND USE PLANNING (BREAKUP ALONG WITH GREEN BELT ETC)
Total Land acquired for the proposed project is 300 acre/1,213,800 m2. Land is owned by the
Company for Industrial purpose.
TABLE 4.1 land use pattern of the project site
Sr. No.
Description
Area (m2)
1 Plant 157353
2 Storage 312981
3 Utility 123038 4 Administrative Building 6988 5 Effluent treatment plant 1290 6 Green belt 473073
7 Parking 19993
8 Colony & Open area 119084
Total 1,213,800
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4.4 ASSESSMENT OF INFRASTRUCTURE DEMAND
M/s. Mukand Ltd. will provide utilities and other infrastructural facilities for its employees in
the proposed project. All the employees and workers will be sourced from nearby villages
hence no residential colony is proposed. All other infrastructure facilities like market;
education; communication etc are well developed in the nearest area. Mukand Ltd. has
assessed the infrastructural demand of the study area, based on the detailed plan of
action as part of proposed CSR activities with a budget of Rs 10 Lac is proposed.
M/s. Mukand Ltd. as a corporate body has taken up following Social Development works:
• Providing Medical facilities for Primary Health Centre in near by villages.
• Providing Education implements to Primary School in near by villages.
• Providing School uniforms, Books, Sports facilities to the school children of near by villages.
• Providing Ambulance facilities for nearby villagers.
• Providing funds for Cultural activities & community celebrations to nearby villagers from
Sponge Iron Manufacturers Association.
4.5 SOCIAL COMMITMENT PLAN
Socio-economic development activities done by Mukand ltd. (Unit-I) in the surrounding area
are listed below;
• Establishment of RO drinking water treatment plant in Kanakapur.
• Construction of concrete roads and drains at Ginigera.
• Free eye check up camp along with distribution of spectacles for lower income
groups in Ginigera and Kanakapur.
• Provision of solar lanterns to local high school students at Ginigera.
• Provision of desks, benches and utensils to local village schools
• Provision of tuition fees for students scoring low marks in English, Mathematics and
Science in SSLC Ginigera High School.
• Development of health, hygiene and nutrition programs for villagers.
Trucks are used for transportation of raw materials and finished products which are covered
with tarpaulin. Proper measures are taken for controlling pollution.
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5.0 PROPOSED INFRASTRUCTURE.
5.1 PLANT AREA
All plant units, office building, stores, laboratories etc. will be provided with all amenities.
5.2 RESIDENTIAL AREA:
All the manpower in the proposed project is sourced from the neighboring villages hence
no colony/ residential area is proposed in the project.
5.3 GREEN BELT
Green belt will be developed in and around the proposed project site in an effective way as
per prescribed norms by CPCB to check pollutants and their dispersion into surrounding
areas. The degree of pollution attenuation by a green belt depends on its height and width,
foliage surface area and density. The main objective of green belt is as follows:
i. Mitigation of impacts due to fugitive emissions caused by vehicles
ii. Attenuation of noise levels
iii. Ecological restoration
iv. Creation of aesthetic environment
5.4 SOCIAL INFRASTRUCTURE
All the infrastructural facilities like market; education; communication etc are well
developed in the nearby area. Mukand Ltd. has assessed the infrastructural demand of
the study area.
5.5 CONNECTIVITY
The proposed project site is easily approachable. The nearest Highway is NH-63
(adjacent to Plant) and NH-13 (13.5 Km, East). THE nearest cities are Koppal and Hospet,
which are situated at a distance of 11 km and 18 km in west and east directions
respectively. The nearest Railway line is Ginigera at a distance of 1 km, NW. Railway line is
0.5 km from the Plant in northern direction and the nearest railway station is Ginigera. The
site is about 10 km by rail from Koppal. Nearest Airport is Hubbali which is 125 Km in West
5.6 DRINKING WATER
The source of water for the project will be supplied by Tungabhadra Dam. Previous
studies reveal that, for the ground water quality is meeting with Drinking Water standards.
The company proposes to use water for domestic purpose as well as Drinking water is
made available for all the workers in the plant premises.
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5.7 SEWERAGE SYSTEM
The domestic / canteen wastes are treated in the STP, which consists of equalization/
neutralization unit, aeration tank followed by settling pond. The treated water, after
confirming to prescribed norms, is used for greenbelt development. The domestic waste
from the colony is treated separately in septic tank and soak pits. A Sewage Treatment
Plant has also been proposed for the colony.
5.8 INDUSTRIAL WASTE MANAGEMENT
Proposed project will not be major source of hazardous waste generation. However the
substances that are hazardous are spent oil etc. solid wastes generated will be reused in
the process or sold to authorized vendors.
5.9 POWER REQUIREMENT & SUPPLY/ SOURCE
The total power required will be 60 MW, which will be met from Captive Power Plant by
support of 30 MW and rest of the requirement of 30 MW will be met by state electricity grid
(KTPCL/GESCOM).
6.0 REHABILITATION AND RESETTLEMENT (R & R) PLAN
R & R plan is not applicable at this stage of project, as the land ownership has already been
obtained and Displacement of people is not involved in the project.
7.0 PROJECT SCHEDULE AND COST ESTIMATE
7.1: LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATE OF COMPLETION (TIME
SCHEDULE FOR THE PROJECT TO BE GIVEN)
It is estimated that in Phase-I – 550,000 Tonnes per year Steel production capacity project
shall be completed in 30 months time from the date of breaking the ground.
Thereafter Phase-II - additional 150,000 Tonnes per year Steel production shall be completed
in 24 months time after commissioning Phase I.
7.2: ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF
THE PROJECT.
The total project cost is estimated Rs. 2892 Crore, based on quotations obtained in
consultation with technical consultant, for various major plant and machinery items.
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Table 7.1 Estimated Project Cost Sr. No.
Particulars
Estimated cost (Rs. In Crores)
Phase Phase I Phase II Cumulative
Capacity
(MT/year) 350,000 350,000 700,000
1 Land procurement and site
development 40 - 40
2 last Furnace + PCM 175 175 350
3 Steel Melt Shop (E.O.F, Ladle
Furnace, VD, Caster) 300 300 600
4 Wire rod cum bar mill + Bar Mill 500 350 850
5 Captive Power Plant (2 x 12
MW) 60 60 120
6 Lime Kiln (150 T / day) 10 10 20
7 Raw material handling, Power distribution, Communication
facilities etc. 20 20 40
8 Coke Oven Plant (2x120,000
TPA) 50 50 100
9 Margin money for working capital
100 100 200
10 Sinter Plant (2x50 M2) 75 75 150
11 Interest etc. (during project execution)
150 70 220
12 Contingency (7.5%) - - 202
Total 1480 1210 2892 8.0 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)
Looking at the present market scenario, it is concluded that the project is not only feasible
and viable, but it will also increase the employment Opportunity and developmental
activities of the area in future.