Sunvik Steels Pvt Ltd

Pre-feasibility Report

1. Identification of Project
M/s. Sunvik Steels Pvt. Ltd., is located at Village Jodidevarahalli, Taluka Sira, District Tumkur, and
Karnataka. The Company has received the Environmental Clearance for the existing Sponge Iron
Plant 90,000 TPA along with Captive Power Plant (10 MW), Induction Furnace (12 MT) and Rolling
Mill (100 TPD). Now, M/s. Sunvik Steels Pvt. Ltd., proposes for addition of the following
S. No

Particulars

Existing Project

DRI Kiln based Sponge Iron Plant

Proposed Expansion

3 X 100 TPD

1 x 200 TPD

Shop

1 X 12 TPH

1 X 500 TPD

Rolling Mill

1 X 100 TPD

1 X 500 TPD

Captive Power Plant

1 X 10 MW

1 X 5 MW & 1 X 10 MW

Blast Furnace

NA

1 X 300 TPD

Tunnel Kiln

NA

2 X 100 TPD

Iron Ore Pelletization & Beneficiation

NA

1 X 2000 TPD

Fly-Ash Brick Plant

2000 Bricks/day

6000 Bricks/Day

Fly-Ash Beneficiation Plant

NA

1 X 100 TPD

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Slag Crusher & Beneficiation Plant

1 X 15 TPD

1 X 30 TPD

Induction Furnace based Steel Melting

Table 1.a
1.1.

Project Proponent

M/s Sunvik Steels Pvt. Ltd., (SSPL) was promoted in the year 2003. The company deals with the
manufacture of sponge iron and MS Billets. The production was so selected because of the vast
knowledge of the Directors in the field. The company will be run under the steward ship of,

Mr. Sandeep M. Shishodia Chairman

Mr. Vivek Kumar Kejriwal Managing Director

Mr. Mahendra Kumar Kachhara Director

Sunvik Steels Pvt Ltd

Pre-feasibility Report

All the above parameters and Directors have a vast knowledge in the field of ferrous and nonferrous metals, including manufacture of alloys and steel operating medium size manufacturing
units. In order to capitalize on this extensive experience, knowledge, acquaintances and expertise
of each of the above directors, the directors have all come together to form Sunvik Steels Pvt.
Ltd.
The core competency of Sunvik Steels Private Limited is to focus on making quality of steel and
making efficient deliveries to its customers. The rolling mills and the melting shops are
continuously upgraded to remain competitive with the best quality products. Further to deliver
to its customers the value added products with efficient delivery schedules M/s. Sunvik Steel
Private Limited was formed in the year 2004 having its go down at Bangalore (Karnataka).
At present there is good demand for steel products like TMT Bars (Thermally Mechanically
Treated Bars), Structural Steel items like Flat, Square, Angle, Rounds, Channels & Beams of high
strength steels, which are mainly used in building constructions and Power Transmission Lines,
etc.

1.2.

Brief description of the nature of the project.

M/s. Sunvik Steels Pvt. Ltd., has 49.5 acres which is converted for industrial purpose for
establishment of Setting Up Sponge Iron Plant of 90,000 TPA along with Captive Power Plant (10
MW) , Induction Furnace (12 MT) and Rolling Mill ( 100 TPD). MoEF has issued environmental
clearance for the above said activities wide letter No: J-11011/959/2008-IA-II (I) dated 10th June
2009. The Industry proposes for establishment of the further expansion as mentioned in Table
1.a within existing premises of its unit at Sy No 59/72 Jodidevarahalli village, Kallambellla, Sira
Taluk, Tumkur District, Karnataka State and also purposes for for allotment of additional 48.4
acres of land to be sanctioned under Section 109 of the Karnataka Land Reforms Act, 1961.

Sunvik Steels Pvt Ltd

1.3.

Pre-feasibility Report

Need for the project and its importance to the country and or region.

Indias economic growth is contingent upon the growth of the Indian steel industry. Consumption
of steel is taken to be an indicator of economic development. While steel continues to have a
stronghold in traditional sectors such as construction, housing and ground transportation, special
steels are increasingly used in engineering industries such as power generation, petrochemicals
and fertilizers. India occupies a central position on the global steel map, with the establishment
of new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous
modernization and up gradation of older plants, improving energy efficiency and backward
integration into global raw material sources. Steel production in India has increased by a
compounded annual growth rate (CAGR) of 8 percent over the period 2002-03 to 2006-07. Going
forward, growth in India is projected to be higher than the world average, as the per capita
consumption of steel in India, at around 46 kg, is well below the world average (150 kg) and that
of developed countries (400 kg). Indian demand is projected to rise to 200 million tonnes by 2015.
Given the strong demand scenario, most global steel players are into a massive capacity
expansion mode, either through brownfield or Greenfield route. By 2012, the steel production
capacity in India is expected to touch 124 million tonnes and 275 million tonnes by 2020. While
Greenfield projects are slated to add 28.7 million tonnes, brownfield expansions are estimated
to add 40.5 million tonnes to the existing capacity of 55 million tonnes. Steel is manufactured as
a globally tradable product with no major trade barriers across national boundaries to be seen
currently. There is also no inherent resource related constraints which may significantly affect
production of the same or its capacity creation to respond to demand increases in the global
market. Even the government policy restrictions have been negligible worldwide and even if
there are any the same to respond to specific conditions in the market and have always been
temporary. Therefore, the industry in general and at a global level is unlikely to throw up
substantive competition issues in any national policy framework. Further, there are no natural
monopoly characteristics in steel. Therefore, one may not expect complex competition issues as
those witnessed in industries like telecom, electricity, natural gas, oil, etc.

Sunvik Steels Pvt Ltd

1.4.

Pre-feasibility Report

Demand and supply gap

Demand for steel is high and as soon as they are processed they will be supplied to nearby
industries.
1.5.

Export possibility

As the Indian steel industry has entered into a new development stage from 2007-08, riding high
on the resurgent economy and rising demand for steel. Rapid rise in production has resulted in
India becoming the 4th largest producer of crude steel and the largest producer of sponge iron
or DRI in the world. As the demand is more the export possibility of Sponge Iron will also be more.
As the demand is more the export possibility will also be more.
1.6.

Domestic/export markets

While the demand for steel will continue to grow in traditional sectors such as infrastructure,
construction, housing automotive, steel tubes and pipes, consumer durables, packaging, and
ground transportation, specialized 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 steel. Hence the domestic and export markets for steel
sector will rise.
1.7.

Employment generation (direct and indirect) due to the project.

Estimated manpower requirement for the proposed project is 100 numbers; the total manpower
requirement for the entire plant is 200 numbers inclusive of staff and security. They will comprise
of 20 % of skilled labors, 40 % of semi- skilled labors and 40 % of unskilled labors.

Sunvik Steels Pvt Ltd

Pre-feasibility Report

2. Project Details
2.1.

DRI Kiln based Sponge Iron Plant

2.1.1. HISTORICAL BACKGROUND

The production of steel began in ancient times; but because of the complexity and
slow speed of the ancient process, they could not be carried out on a very large scale.
Consequently, they were replaced by the high production rate indirect process, and
the development of modern DR Process did not begin until the middle of 19th century.
Perhaps the very first patent in U.K. for sponge iron making was in 1792 presumably
using a rotary kiln. More than 100 DR processes have been invented and operated
since 1920. Most of these have died down. But some of them have re-emerged in
slightly different form.
As touched upon earlier, sponge iron is mainly produced from ore by two different
routes (a) by reducing gases (CO and H2) in a shaft furnace, and (b) through direct
treatment with coal in a rotary kiln.
2.1.2. IMPORTANT FEATURES
The coal based rotary kiln process of making sponge iron is the focus of the present
write up. Although many different processes and process concepts have been
emerging in this area, there were rapid births and deaths of these processes and
process concepts in the middle of the twentieth century. But those operating
successfully at present have many features in common. Some of the common or
slightly differing features are:
(i) System of sealing to prevent air ingress into the reactor,
(ii) System of throwing or slinging coal from discharge end of reactor,
(iii) System of weigh feeding and proportioning of raw materials
(iv) System of introducing controlled amount of air at regular intervals of length in
such a way that it does not oxidize the reduced product in the bed,
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Sunvik Steels Pvt Ltd

Pre-feasibility Report

(v) System of temperature sensing at regular intervals of length of the reactor and
recording of the same.
(vi) System of indirect cooling of sponge iron-char mixture in a rotary steel cylindrical
shell using water from the outside.
(vii)

System of treating waste gases and maintaining desired flow profile

through pressure control.

Fig. 2.1.2.a Key steps in sponge iron making in rotary kiln

A typical process scheme for making sponge iron in a rotary kiln is presented in Fig. 2.1.2.a While
Fig. 2.1.2.a shows only the key steps, a more detailed scheme, as it would appear for a typical
operating plant.

Sunvik Steels Pvt Ltd

Pre-feasibility Report

2.1.3. SPONGE IRON PLANT SCHEMATIC

2.1.4. WHY SHOULD WE SELECT A ROTARY KILN?

The rotary kiln direct reduction (RKDR) processes have been looked upon with
apprehension, mainly because there have been rapid births and deaths of processes
in this group. But the fact that it has re-emerged points to certain strengths of this
process. Let us examine some of them.
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Sunvik Steels Pvt Ltd

Pre-feasibility Report

2.1.5. Process Strengths

Rotary kiln process has to compete mainly with the shaft process of making sponge
iron and in some cases with iron making blast furnace. As compared to them, the
rotary kiln has some advantages, as also some limitations, both with respect to the
process and the product it makes. The major process strengths of rotary kiln are:
(i) A rotary kiln can mix the solid charge as it heats and reduces it. Simultaneous
mixing helps in the dilution of CO2 concentration formed around the iron
ore/sponge iron particles which is necessary for the reduction reaction to
proceed.
(ii) As a large freeboard volume is available above the solid charge (about 85%),
the rotary kiln can tolerate heavily dust-laden gas. When the kiln is suitably
designed, it would be best suited for utilizing the Indian high ash non-cooking
coals. In shaft reactors, generation of such dust leads to choking and
channeling which leads finally to disruption of the process.
(iii) Rotary kiln can serve the dual purpose of a coal gasifier as well as an ore
reducer. Preparation of reducing gas from coal is an expensive step, which is
coming in the way of commercialization of coal gasification based DR process.
Therefore, rotary kiln DR process has proved commercially viable, even with
low productivity per unit volume, because of this capability to perform two
different functions simultaneously.
(iv) In comparison to blast furnace, the temperature of reduction of iron oxide is
much lower in rotary kiln (about 1000oC as against 1500 to 2000oC in blast
furnace). This means that much less energy is required for bringing the
reactants to the temperature of reaction.
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Sunvik Steels Pvt Ltd

Pre-feasibility Report

2.1.6. Product Strengths

Additionally the strengths of the product made by rotary kiln are:
(i) It is easy to desulphurise iron ore while making sponge iron. Consequently the
sponge iron of much lower sulphur content can be produced as compared to
blast furnace hot metal. For shaft process of sponge iron making, prior and
meticulous de-sulphurisation of natural gas is necessary to prevent poisoning
of catalyst used for reforming.
(ii) Sponge iron produced from rotary kiln is obtained in close granular size range.
This permits charging in electric or other steel making furnaces in a continuous
manner, obviating the need for opening and closing of roof. Continuous
charging permits partial refining during melting stage as the particle passes
through the slag layer into the mixed layer. If adequate melting energy is
available, refining time, and consequently, operation time can be considerably
reduced.

Sunvik Steels Pvt Ltd

2.2.

Pre-feasibility Report

Induction Furnace based Steel Melting Shop

2.2.1. PROCESS
An induction furnace is powered by an electrical source that is designed to deliver
high frequency alternating current, AC, at the proper frequency required to create the
electromagnetic field. The AC power is conducted through a coil of copper tubing so
that it can generate the magnetic field. Water is pumped through the coil to help keep
it cool. The molten metal in an Induction Furnace is circulated automatically by the
electromagnetic action so that when alloy additions are made, a homogeneous
product is ensured in minimum time. The time between tap and charge, the charging
time, power delays etc. Are items of utmost importance are meeting the objective of
maximum output in t/hour at a low operational cost. The process for manufacturing
steel may be broadly divided into the following stages:
2.2.1.1.

Melting the Charge

The furnace is switched on, current starts flowing at a high rate and a comparatively
low voltage through the induction coils of the furnace, producing an induced magnetic
field in the central space of the coils where the crucible is located. The induced
magnetic fluxes thus generated out through the packed charge in the crucible, which
is placed centrally inside the induction coil.
As the magnetic fluxes generated out through the scraps and complete the circuit,
they generate and induce eddy current in the scrap. This induced eddy current, as it
flows through the highly resistive bath of scrap, generates tremendous heat and
melting starts. It is thus apparent that the melting rate depends primarily on two
things (1) the density of magnetic fluxes and (2) compacted of the charge. The charge
mixed arrangement has already been described. The magnetic fluxes can be
controlled by varying input of power to the furnace, especially the current and
frequency.
In a medium frequency furnace, the frequency range normally varies between 15010K cycles/second. This heat is developed mainly in the outer rim of the metal in the
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