373
373
373
12. The basic capital equipment required for the coal based processes is:
14. As far as gas based plants are concerned, the design and manufacture
of non-proprietary items, except for the critical items like process gas
compressors and briquetting machines can be done indigenously. As
indicated by MECON, some proprietary items can also be
manufactured indigenously based on basic design from the proprietors.
In respect of coal based plant, capability has been developed in the
country for manufacturing almost 100% of equipment required for
plants upto capacity of 1,00,000 TPA sponge iron.
(ix)
15. The capital investment made by existing DRI plants is summarised
below:
16. The existing coal based sponge iron units in the country include the
plants of SIIL, OSIL, IPITATA, BSIL AND SISCL. The total installed
capacity of the existing coal based plants is 5.85 lakh TPA. The gas
based plant of Essar Gujnarat based on Midrex technology having a
capacity of 8.8 lakh TPA comprises two modules. The first module
was commissioned in March '90 while the second was commissioned
in July 1990. Most of the existing plants have plans to expand their
capacities. The additional planned capacity of existing coal based
plants is 5.2 lakh TPA while EGL's plant is planned to have an
additional capacity of 7.2 lakh TPA. Grasim Industries, Goldstar, Ispat
Group, Bharat Forge, Usha Rectifier, Jindal and Mukand are some of
the other companies having proposals for putting up large capacity new
plants. Thus, the installed capacity of sponge iron at present including
Plant SIIL OSIL IPITATA BSIL SISCL
Production:
Period 1989-90 1987-88 1988-89 (15 1990-91 No commer-
months) (7 months) cial pro-
duction
Tonnage 52930 89000 68937* 71.300
Cap. Utili- 88.0 65.9 61.0 81.0
sation %
Av. Metalli- 90+2 90 90 91-92
sation %
Consumption /ton of DRI
Iron ore t 1.90-1.95 1.45 1.54-1.77 95% yield
NC Coal t 1.50-1.55 1.1 to 1.15 1.20-1.53 0.45 CFix/Fe
ratio
Water Cum 10.0 7.0 7.0
Power kwh 155-170 141 140 80
*Since August '90, production higher than rated capacity
18. Orissa Sponge Iron Limited : The OSIL plant is based on ACCAR
technology of Allis Chalmers Corporation of USA. The technology
uses non-coking coal and HSD. The installed capacity of plant was
150,000 TPA. During the initial years of operation, OSIL faced a
number of problems in plant operations, but with dedicated research
and development, they have been able to solve many of the problems
and in the process, were successful in absorbing the technology. The
main problems faced were the accretion or ring formation in the kiln,
poor metallisation of the product and higher coal consumption.
OSIL were successful in overcoming the problem of accretion and poor
metallisation by controlling the raw material feed and the temperature
profile of the kiln. For reducing the high consumption of coal, OSIL
modified their coal feeding system by introduction of coal slinging
from the kiln discharge end and achieved the desired results.
19. Ipitata Sponge Iron Limited : Ipitaita is the first plant where
indigenously developed direct reduction technology was put on
commercial scale. The plant was commissioned in 1986 and since then
there had been a number of problems in the plant operations. The main
(xii)
problem faced was continuous failure of kiln refractories. With
continued efforts for improvisation and technical assistance from
Lurgi, Ipitata were able to overcome all the problems. Presently,
Ipitata is achieving production levels of more than the rated capacity
indicating that the TDR technology has now been fully proven.
20. Bihar Sponge Iron Limited : BSIL plant at Chandil, Bihar is based on
SL/RN technology of Lurgi, GmbH, West Germany. The plant was
commissioned in April 1989 and during the first year of operations,
there were no major problems in respect of the process and the desired
quality of the product was obtained. During the current year, the plant
is operating with capacity utilisation of over 80%. BSIL technical
personnel have been fully trained and have absorbed the imported
technology.
21. Sunflag Iron & Steel Company Limited : The plant belonging to
SISCL has an installed capacity of 1,50,000 tonne per annum and is
based on CODIR process. The plant production is planned to be used
in the Company's own downstream EAF facility. The plant was started
in August 1989. The plant operations are yet to be stabilised. Constant
efforts are being made to adapt the technology to local conditions
especially those of highly variable quality of the raw materials.
22. Since, the development of DR. processes in late 50's. there had been
tremendous growth of sponge iron industry all over the world. The
process licensors have utilised their long operating experience to
remove the initial technical lecunae and brought the technologies to
near perfection. Through constant research and development work,
many improvements in technologies have also been brought about,
such as :
(xiii)
Iron (HBI) has opened new avenues to DRI like oxygen steel
making and foundaries. Many of the Midrex plants also have
achieved capacity utilisation of over 100%.
iv) SL/RN technology of Lurgi GmbH is the most favoured coal
based technology and 31 units at 10 different places with a
total annual installed capacity of over 4.8 million tonne are
operating on this technology.
23. The other coal based processes, namely CODIR process of Krupp
MDH. DRC process of Davy Mckee, ACCAR process of Allis
Chalmers/Boliden and indigenously developed TDR technology have
only limited commercial application. Out of these, CODIR process,
which had only one plant to its credit in South Africa, has some
commercial success recently. SISCL's plant based on this technology
has just been commissiosned and two more plants are under
construction and would be ready in 1991 and 1992 respectively. Only
one plant each is operating on DRC (Scaw Metals, S.A.), ACCAR
(OSIL, India) and TDR (Ipitata, India) processes. Jindal Strips
Limited are installing plant based on their recently developed coal
based technology.
24. Most of the available DR technologies both the coal based and gas
based have been so far imported in the country. The gas based
plants on imported technology have been commissioned recently but
the plants based on solid reductant technologies have been erected,
commissioned and operated for quite some time and the plant operators
had good opportunity of technology absorption. They have been able
to overcome the technological problems in the initial stages and bring
about certain improvements in the operations. Sponge Iron India
Limited, the first entrants in the sponge iron field, have also
engineered, erected and commissioned the second DRI unit and with
(xiv)
this experience they are offering technology and engineering services
for setting up coal based DRI plants up to 30,000 TPA capacity with
98% indigenous equipment.
25. Indigenously developed TDR process have now been proven and the
technology is available for setting up of plants up to 90,000 TPA
capacity. Indigenously developed technology of Jindal Strips Limited
is being adopted at their Rigarh plant in M.P. Jindals are also using
100% indigenously manufactured equipment. The capacity of each of
the two units being installed is 100,000 TPA. This indicates that there
are no technological gaps in respect of coal based technologies
especially for the plants of capacity up to 100,000 TPA DRI. As
regards the gas based plants, the reforming of natural gas with steam is
not new to Indian industry and the knowhow for engineering, erection
and commissioning of the same is available in the country. But
technology for gas reforming by reactor top gas used in Midrex
process is not available in the country.
(xv)
based Midrex technology, though commissioned recently, has
achieved rated capacity in a short time.
27. The following recommendations are made to ensure the desired growth
of the industry:-
i) Adopting indigenously available technologies for settingg up of
coal based DRI plants.
ii) For gas based, technology may have to be imported. In that case
negotiations may be held for maximum indigenisation of the
equipment and time bound arrangements of technology transfer.
(xvi)