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PRE-FEASIBILITY REPORT

FOR

THE PROPOSED

EXPANSION OF EXISTING INTEGRATED SPONGE IRON PLANT, STEEL MELTING SHOP

(INDUCTION FURNACE), CAPTIVE POWER PLANT ALONG WITH PROPOSED

PALLETISATION PLANT

CAPACITY:

STEEL BILLETS FROM 330000 MTPA TO 653400 MTPA

SPONGE IRON FROM 297000 MTPA TO 594000 MTPA

CAPTIVE POWER FROM 53.0 MW TO 80.5 MW

PROPOSED PELLET PLANT OF 792000 MTPA

AT

PLOT NO. AL – 5, SECTOR NO. 23, GIDA INDUSTRIAL ESTATE,

VILL- SAHBAJGANJ & DOMHARMAPHITEHSIL – SAHAJANWA

DISTRICT- GORAKHPUR (U.P)

PIN - 273209

BY

GALLANTT ISPAT LIMITED

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Ministry of Environment and Forests

Pre-Feasibility Report as per Ministry of Environment and Forests

Contents Details

1. Executive Summary M/s Gallantt Ispat Limited,

Plot No. AL – 5, Sector No. 23, GIDA Industrial estate,

Vill- Sahbajganj & Domharmaphi

Tehsil – Sahajanwa

District- Gorakhpur (U.P)

Pin - 273209

Location Co-ordinates:

Latitude: 26º45’33.64” N

Longitude: 83º12’02.50” E

Elevation : 254 ft

Project cost for expansion: - Rs 602.53 Crores

Total project cost : (Proposed +Existing ) Rs 1197.20 Crores

2. Introduction of the project

Background information

India’s economy is also posed for sharp upturn. This is expected to lead,

to a substantial improvement in the per capita consumption of steel.

Further, while India is endowed with rich deposits of raw materials and

its labour rate continues to be cheap on international basis, its

contribution with 20% of world population is only of the order of 2.6%

of world steel production. Therefore, under the current liberalized

economy, private entrepreneurs can avail of the favourable situation for

investment in the steel industry of the country.

The Company has selected modified IF route for steel making. This

route of steel making has the benefits of lower per ton investment,

appropriate for small steel plant, lower power consumption and

environment friendly process in comparison to other processes of steel

making.

In 2016, production of crude steel was about 96 MTPA with a growth of

approximately 10.5% over 2015. India’s per capita steel consumption is

61 kg, much lower than the global average of 208 kg. India’s

consumption of finished steel products is expected to grow by 6.1 per

cent in calendar year 2017 compared with 2016. Indian economy is

rapidly growing with key focus on infrastructure and construction

sector. Several initiatives mainly, affordable housing, expansion of

railway networks, development of domestic shipbuilding industry,

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opening up of defence sector for private participation, and the

anticipated growth in the automobile sector, are expected to create

significant demand for steel in the country. World Steel Association has

projected Indian steel demand to grow by 6.1% in 2017 and by 7.1% in

2018.

As per the National steel policy (NSP) 2017, in order to achieve

expected demand of 300 MT and per capita consumption of 160 kg of

finished steel by 2030-31, steel demand would need to grow at a CAGR

of around 7-7.5 per cent during the period against a CAGR of 3.5 per

cent - 4 per cent over the last 5 years. This would mean that capacity

additions planned by most of the major steel players need to come on

stream in next few years.

i.Identification of project and

project proponent. In case

of mining project, a copy of

mining lease/letter of

intent should be given.

Gallantt Ispat Limited (GIL) is a well established public limited company, listed on both the premier stock exchanges of India viz. Bombay Stock Exchange Limited and National Stock Exchange of India Limited. GIL is one of the companies of “Gallantt Group” which was incorporated in 2005 at Kolkata, with an object to carry on the business of manufacturers, producers etc. in all kinds of iron and steel products such as sponge iron, pig iron, bars, billets, Captive power plant etc. However with passing of time, promoters of the Company started exploring new areas of operation and exploring new areas of operation and have entered into Real Estate business. Gallantt Ispat Limited is one of the fast and aggressively growing organizations, which has captured a substantial market of Sponge Iron, M.S., Billets, TMT Bars and wheat flour products in the state of Uttar Pradesh within a short span of time. The group has about three decades of experience in steel and food processing industries and is well known by its brand name “Gallantt” which is ISO 9001:2008 & ISI certified. We are currently catering to various reputed clients such as Shalimar Corp Ltd., Viraj Construction Pvt. Ltd., Parasnath Developers, Omega Developers & Builders, BBD University, Uttar Pradesh Rajkiya Nirman Nigam and other State Government Departments. Company sells substantial part of its production in U.P. acknowledging the region’s enormous potential for steel consumption, we have planned to expand the present installed capacity. Such a step would require a huge investment within a short span of two years, for which Company is well equipped with. At Gallantt Ispat, we have evolved an agile business model, which can respond to the rapidly evolving market realities with speed and has helped us to consistently achieve volume guidance over the years. During past few years, despite sluggish demand, our model of

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marketing achieved higher sales target.

ii. Brief description of nature

of the project.

In view of the tremendous market potential of Iron & steel and wheat

products promoters have decided to expand the capacity of the existing

Integrated Steel Plant and Power Plant for increase in production of

Sponge Iron (DRI), Steel Billets with Captive Power Plant. Expansion in

the existing plant would improve the overall profitability of the project

making it financially more viable.

The in-house consumption of entire sponge iron for manufacturing of

billets and captive power plant utilizing the waste heat rejects from the

sponge iron would improve the overall profitability of the project.

The modules of the projects and their relative advantages are as follows:

S.

No

Division Rational

1. Sponge Iron To produce 297000 Existing + 297000 MT

Additional total (594000 MT) of sponge iron

with addition of one Kiln of 750 MT/Day and

one Kiln of 150 MT/Day with existing two

Kilns of 450 MT/Day to be utilized in Steel

Melt Shop (Induction Furnace with Continuous

Casting) to produce Steel Billets. Further, the

waste heat and Char of sponge iron kilns shall

be utilised by the captive power plant for

power generation.

Total Number of Working Days will be 330

Days.

2. Steel

Melting

Shop

To produce 653400 MT Steel Billets with 2

Induction Furnace of 22.5 MT, 2 Induction

Furnace of 27.5 MT, 4 Induction Furnaces of

30 MT (330 working days & 9 Heats/Day) to

meet the requirements of Rolling Mill. It will

consume Sponge Iron produced in the DRI

division.

3. Captive

Power Plant

Power shall be generated by utilization of

waste heat coming out from WHRB of DRI kilns

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Contents Details

and solid waste (Char) coming out from DRI

Kilns. This will reduce the overall cost of

power significantly. Entire power shall be

consumed by the unit itself. Beside waste heat

power shall also be generated by CFBC/AFBC.

Present capacity of 53 MW shall be increased

to 80.50 MW..

4. Palletisation

Plant

A new Pelletization Plant will be installed with

a capacity of 792000 MTPA Pellet

manufactured on 330 working days with daily

production of 2400 MT. This entire production

will be used in DRI/Sponge Iron Plant.

iii. Need for the project and its

importance to the country

and or region.

The Indian economy is rapidly growing and is emerging as the second

largest developing economy of the world, which has a great impact on

domestic consumption of steel as well as export potential to other

countries. As a result of this, the demand for iron & steel remains

extremely good, this would continue for next 10 years if not less, since

the per capita consumption of steel in India is still very low compared to

other developed countries. For rapid development of economy and

infrastructure of the country it is necessary to increase the production of

steel within the country.

As per the National steel policy (NSP) 2017, in order to achieve expected

demand of 300 MT and per capita consumption of 160 kg of finished steel

by 2030-31, steel demand would need to grow at a CAGR of around 7-7.5

per cent during the period against a CAGR of 3.5 per cent - 4 per cent

over the last 5 years. This would mean that capacity additions planned by

most of the major steel players need to come on stream in next few years.

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Contents Details

iv. Demand-Supply Gap. Supply - Demand Scenario

In 2016, production of crude steel was about 96 MTPA with a growth of

approximately 10.5% over 2015. India’s per capita steel consumption is

61 kg, much lower than the global average of 208 kg. India’s

consumption of finished steel products is expected to grow by 6.1 per

cent in calendar year 2017 compared with 2016. Indian economy is

rapidly growing with key focus on infrastructure and construction

sector. Several initiatives mainly, affordable housing, expansion of

railway networks, development of domestic shipbuilding industry,

opening up of defence sector for private participation, and the

anticipated growth in the automobile sector, are expected to create

significant demand for steel in the country. World Steel Association has

projected Indian steel demand to grow by 6.1% in 2017 and by 7.1% in

2018.

As per the National steel policy (NSP) 2017, in order to achieve expected

demand of 300 MT and per capita consumption of 160 kg of finished

steel by 2030-31, steel demand would need to grow at a CAGR of around

7-7.5 per cent during the period against a CAGR of 3.5 per cent - 4 per

cent over the last 5 years. This would mean that capacity additions

planned by most of the major steel players need to come on stream in

next few years.

v. Imports vs. Indigenous

production.

Only indigenous production.

vi. Export Possibility. No

vii. Domestic/export Markets. Domestic Only

viii. Employment Generation

(Direct and Indirect) due

to the project.

Direct employment :- for expansion additional 405 Persons will be

required.

Total Number of manpower after expansion will be 1125 Nos.

Indirect employment :- approx 750 persons

3. Project Description

i. Type of project including

interlinked and

interdependent projects, if

any.

Category ‘A’ schedule in 3(a),

Installation of Palletisation Plant and Expansion of existing Sponge iron

plant (DRI), Steel Melting shop (Induction furnace), with Captive power

plant.

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ii. Location (map showing

general location, specific

location, and project

boundary & project site

layout) with coordinates.

Location map Enclosed (Google EARTH MAP),

iii. Details of alternate sites

considered and the basis of

selecting the proposed site,

particularly the

environmental

considerations gone into

should be highlighted.

Expansion will be done within existing land / premises.

iv. Size or magnitude of

operation.

Installation of Palletisation Plant and Expansion of existing Sponge iron

plant (DRI), Steel Melting shop (Induction furnace), with Captive power

plant.. Proposed expansion of plant is given below :

Unit Existing Capacity

Proposed Capacity

Total Capacity after Expansion

SMS 330000 MTPA

323400MTPA 653400 MTPA

DRI 297000 MTPA

297000 MTPA

594000 MTPA

Palletization plant

- 792000 MTPA

792000 MTPA

CAPTIVE POWER PLANT

TOTAL 53 MW 27.5 MW 80.5 MW

v. Project description with

process details (a

schematic diagram flow

chart showing the project

layout, components of the

project etc. should be

given)

Detail of manufacturing process is enclosed with detailed project report.

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Contents Details

vi. Raw material required

along with estimated

quantity, likely source,

marketing area of final

products, Mode of

transport of raw Material

and Finished Product.

Sr.

No. Material

Existing

Consumption

Total

Consumption

after

expansion Source

Sponge Iron Plant

1 Iron Ore 237600 MTPA 66528 MTPA Open Market

2 Pellets 237600 MTPA 794772 MTPA

Self / From

Manufacturer

3 Coal 267300 MTPA 534600 MTPA

Import/

auction/Open

Market

4 Dolomite 14850 MTPA 29700 MTPA Open Market

Palletisation Plant

1.

Iron Ore

Fines - 883872 MTPA Open Market

2. Bentonite - 6336 MTPA Open Market

3.

Lime

Stone - 7920 MTPA Open Market

4. Dolomite - 3960 MTPA Open Market

5. Coal - 43560 MTPA Open Market

Steel Melt Shop Division

(Induction Furnace with Continues Caster)

1

Sponge

Iron 297000 MTPA 594000 MTPA Self

2 MS Scraps 109267 MTPA 200779 MTPA Open market

3

Ferro

Alloy 4950 MT 7841 MT Open Market

Captive power Plant (AFBC)

1 Coal 124740 MTPA 214500 MTPA Auction / Open

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Market

2 Rice Husk 83160 MTPA 35244 MTPA Open Market

3 Dolochar 41580 MTPA 80190 MTPA Self Generated

vii. Resource

optimization/recycling

and reuse envisaged in the

project, if any, should be

briefly outlined.

Water :

Existing Water requirement: 4254.0 KLD

Proposed Water requirement for expansion: 2522.0 KLD.

Total Water Requirement after expansion: 6776.0 KLD.

As this project is based on Zero Discharge, 100 % recycling of water will

be done in the process.

Solid waste:

Dolochar (243 TPD) will be reused as fuel for power generation through CFBC/AFBC boiler.

Slag (198 TPD) will be used and sold as it is as substitute of Course sand for construction work.

Total ash (350 TPD) from the Boiler and APCS will be sold for Cement manufacturing.

Total ash (20 TPD) from the Palletisation will be sold for Cement manufacturing.

viii. Availability of water its

source, Energy/power

requirement and source

should be given.

Existing Industry is present in Non Notified “Safe” Zone as per CGWA.

Water requirement met through existing tube well.

Existing water requirement-

Industrial use: 4194 M3/Day

Domestic Use: 60M3/Day

Expansion Water requirement

Industrial use: 2432.0 M3/Day

Domestic Use: 90 M3/Day

Total Water Requirement after expansion -

Industrial use: 6626 M3/Day

Domestic Use: 150 M3/Day

Total Water requirement after expansion : 6776 M3/Day

ix. Quantity of wastes to be

generated (liquid and

solid) and scheme for their

Management/ disposal.

Liquid effluents- Proposed project is based on ZERO discharge. Waste

water generated from the process will be treated in neutrilisation pit

and After treatment 100 % recycling will be done.

Domestic Waste water is being treated in Sewage treatment plant,

same will be utilised after expansion also.

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Contents Details

Solid Waste (after expansion)-

Dolochar (243 TPD) will be reused as raw material within the plant for power generation through CFBC boiler.

Slag (198 TPD) will be used as sand for construction work. Total ash (350 TPD) from the Boiler and APCS will be sold for

Cement manufacturing. Total ash (20 TPD) from the Palletisation will be sold for Cement

manufacturing.

x. Schematic representations

of the feasibility drawing

which give information of

EIA purpose.

It will be enclosed in DPR/EIA report.

4. Site Analysis

i. Connectivity. Railway Station: Sahjanwa –2 km

Airport: Gorakhpur-25 km

ii. Land Form, Land use and

Land ownership.

Plain land, Industrial Land and is registered in the name of Gallantt Ispat

Limited.

iii. Topography (along with

map).

Location Map (Google Earth map) enclosed

iv. 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 sanctuary,

eco from the HFL

industrial area, be given.

Land use pattern will be Study and Enclosed in EIA Study report.

No any sanctuary, eco-sensitive zone is present within 5 KM of the

project site.

v. Existing Infrastructure. Existing industrial plant.

vi. Soil classification Silty/Clay/Sand

vii. Climatic data from

secondary sources.

Max. Temp:43 Degree C

Mini. Temp: 3.7 Degree C

Ave Temp: 27 Degree C

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Relative Humidity: 65 – 85 %

viii. Social Infrastructure

available.

Road, School & electricity.

5.Planning Brief

i. Planning Concept (type of

industries, transportation

etc) Town and Planning/

Development authority

Classification

Transportation by Road and Railways.

ii. Population Projection For expansion additional 405 Persons will be required.

Total Number of manpower after expansion will be 1125 No.s.

Indirect employment :- approx 750 persons.

iii. Land use planning

(breakup along with green

belt etc).

66.7 % of area is used for plant machinery, Storage of raw Material,

infrastructure and storage final products.

33.3 % of total project land is already developed as green belt.

iv. Assessment of

Infrastructure Demand

(Physical & Social).

Local labours & construction material.

v. Amenities/Facilities. Company’s employees and consumer shall be provided.

6. Proposed Infrastructure

i. Industrial Area

(Processing Area).

Industrial land

ii. Residential Area (Non

Processing Area).

Available with existing Plant / near by village

iii. Green Belt. Green belt development: 33.30 % (13.99 ha.) of total area (40.50 ha.) of

existing land.

iv. Social Infrastructure. Proposed expansion will lead to the development of certain local

ancillary facilities and consequent employment opportunities. Further

the proposed expansion will also lead to the development of market,

trade centres, banking activities etc.

v. Connectivity (Traffic and Railway Station: Sahjanwa –2 km

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Rail/Metro/Water ways

etc)

Airport: Gorakhpur-25 km

National Highway : 28 - 0.2km

vi. Drinking Water

Management (Source

water)

Ground water from existing (03) tube well and proposed 03 No tube

well.

vii. Sewerage System. Domestic Waste water is being treated in Sewage treatment plant

and it is sufficient to treat the water after expansion also.

viii. Industrial Waste

Management.

Solid Waste :

Dolochar (243 TPD) will be reused as raw material within the plant for power generation through CFBC/AFBC boiler.

Slag (198 TPD) will be used as sand for construction work. Total ash (350 TPD) from the Boiler and APCS will be sold for

Cement manufacturing. Total ash (20 TPD) from the Palletisation will be sold for Cement

manufacturing.

Hazardous Waste Spent oil, Used oil and oily waste shall be provided to authorized recyclers/ preprocessors.

ix. Solid Waste Management. Dolochar will be reused as raw material within the plant for power generation through CFBC boiler.

Slag will be used as sand for construction work. Total ash from the Boiler and APCS will be sold for Cement

manufacturing. Total ash from the Palletisation will be sold for Cement

manufacturing.

x. Power Requirement &

Supply / source.

Power requirement 81 MW after Expansion. The above demand will be

met from own Captive power plant of (80.5-10% Self Consumption) with

10 MW of UPPCL power.

DG Set for power backup of auxiliary load.

DG sets Details :

(1 No) 1000 KVA (Existing)

(1 No) 630 KVA (Existing)

(1 No) 2000 KVA (Existing)

(02Nos ) 1250 KVA (Existing)

7. Rehabilitation and

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Resettlement (R&R) Plan

i. Policy to be adopted

(Central/State) in respect

Of the project affected

persons including home

oustees, land oustees and

landless laborers (a brief

outline to be given).

No R & R

8. Project Schedule & Cost

Estimates

ii. Likely date of start of

construction and likely

date of completion (Time

schedule for the project to

be given).

After receipt of NOC & Environmental Clearance.

iii. Estimated project cost

along with analysis in

terms of economic viability

of the project.

Existing Project Cost : Rs 594.67 Crores

Project Cost for Proposed expansion : Rs. 602.53 Crores

Total Project cost after expansion : Rs. 1197.20 Crores

iv. Cost toward Environment

Protection

Existing Cost for EMP : Rs 866.50 Lakh

Proposed expansion: 3544.46 Lacs

Total EMP cost : 4410.96 Lacs

9. Analysis of proposal (Final

Recommendations)

i. Financial and social

benefits with special

emphasis on the benefit to

the local people including

tribal population, if any, in

the area.

Financial Benefits:

Benefits and advantages of expansion of existing plant:

a) It will full fill the Demand Supply Gap.

b) It is help in increment of Life style of Local People By providing

Jobs.

Social Benefits:

Greater employment for local populations

Environmental benefits:

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a) Low emission of air pollutant (ESP installed).

b) It is a Brown field project.

c) No waste water will be generated and 100 % recycling will be

done.

Other Benefits:

Revenues to the State and Central ex-chequers.

Over all development of District- Gorakhpur in particular and Uttar

Pradesh State in general.

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EXISTING INDUSTRY SITE WITHIN 5 KM RADIUS (Satellite Image)

Proposed expansion of existing

Industry Site

Gallantt Ispat Limited

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EXISTING INDUSTRY SITE WITHIN 10 KM RADIUS (Topo )

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