May 2007 - SIMA

Power Grid:
Similarly the power transmission system is to be
strengthened to cater quality power as well as to
facilitate evacuation of power from the captive
WHRB-FBC cogeneration units.
Iron Ore Requirement:
Iron ore requirement, is of the order of 15 MTPA of
high grade. The state has Iron ore reserved of 5671
MTPA out of which high grade (Sponge grade) is
2425 MT. This includes 3045 MT under captive mines
1837 MT under non-captive mines and 1243 MT in
virgin deposits. The state produced 54.6 % MT in
2005-06 from 107 working mines. The ores were
fed to domestic as well as export market. It is
disappointing that the sponge industries are suffering
from non-availability of Iron Ore. Besides the price
escalation during the last 4 years has been hitting
hard. Most of the sponge plants do not have captive
mines.
Coal Requirement:
The coal requirement of the industries in state is
about 12 MTPA of high grade, non-coking coal with
ash content of 25% or less. Coal available to the
plants by linkage is almost wholly of ‘F’ grade. It
needs to resort to washing for which 24 MTPA coal
will be required. Orissa has reserves of 62 Billion
Tonne of non-coking coal largely of lower grade.
Linkage have not been made for all the operating
plants as yet.
Development:
At present kilns are operated using lower grade Iron
Ore and Coal as the standard quality materials are
unobtainable as well as price constraints. It has
therefore become necessary to preprocess Iron Ore
and Coal at plant or at customized central units. It
includes low-grade ore concentration, pelletisation
and washing of coal. Operation and maintenance
system needs improvement for maintaining quality
and output efficiency. Although the kiln operation is
semi mechanized there is scope of upgrading and
integrating control systems. Waste utilization, safety
measures, environmental cleanliness and pollution
abatement are some of the important tasks, which
will continue to engage attention of the entrepreneur.
Cost Impacts:
Apprehensions as to economic viability and long life
of the industry has been bothering the entrepreneurs
in absence of assured supply of raw materials of
proper quality at affordable cost. Other operational
cost impacts are on account of transport, inadequate
infrastructure and service facilities. In a highly
competitive environment and market instability the
industry is adopting higher value addition through
down stream process units for conversion to steel
and rolled products. Co-generation with CDM benefit
is attempted to cut down the power cost besides
environmental gain.
Transportation:
The plants are spread over 9 districts and most of
them are located within 10 clusters of 20 Kms. radius
each. Nearly 30% of the plants are within 25 Kms.
radius of source of Iron Ore & Coal. 70% of the plants
require to transport either ore or coal or both to
distances of 100 to 200 Kms. As the connecting
roads are presently in very bad shape, transport
charges are exorbitantly high. Rail connectivity and
rolling stock availability is poor for bulk movement
of raw materials as well as the products. Therefore
links and sidings handling system and improvement
of the existing rail and road routes require to be
undertaken within short span of time, if required
under public, private partnership.
Solid Waste Management:
The solid waste generation at the sponge plants
consists chiefly of coal char, which is about 15% to
20%of raw feed by weight. Minor quantities of
sludges are generated. The ash and dust collected
from the pollution control systems and the power
units need to be scientifically disposed off for which
waste disposal yards are to be planned and
managed. Waste recycling is also being tried.
Contribution to Exchequer:
The industry with its current authorized capacity has
potentiality of contributing to Govt. Exchequers
annually as follows:
State Govt. : 651.87 Crore
Central Govt. : 1678.5 Crore
MOU Plants:
The State Govt. has inked MOUs with 45 companies
for establishing steel units in the state with capacities
above 0.25 MTA. These units will have combined
capacity of 81.4 MTA. Out of the above 31 plants
shall be in sponge route, having total capacity of
15.85 MTA Sponge Iron. These include 23 existing
sponge manufacturers. Investments under these
projects total Rs. 180440 Crore. Land and water
requirement of the plants is 16157 Ha. and 3.3 BLD
respectively. Their employment potential both direct
& indirect is 28000.
MAY-2007/23