Bashundhara - TEFR For ISP

TECHNO-ECONOMIC FEASIBILITY REPORT
ON
INTEGRATED STEEL PLANT
FOR
BASHUNDHARA GROUP
MARCH 2019
Techno Economic Feasibility Report on an Integrated Steel Plant at Chittagong , Bangladesh Summary
Bashundhara Group (BG) has envisaged to produce 2.0 million tons per year (mtpy) of Hot Rolled Coils to cater to the flat product market in Bangladesh. In this
connection, BG has already been allotted a land in Mirsharai Economic Zone (MEZ) at Mirsarai upazila, Chittagong District. BG now intends to install steelmaking
and casting facilities to produce HR coils which is presently being 100 percent imported. For the proposed steel plant, the process route shall be with
Electric Arc Furnace-Ladle Furnace-Thin Slab Casting and rolling technology for producing HR coils
Objectives : Observations : Plant Configuration :

1. Techno economic Feasibility of the 2.0 MTPA HR coil plant with
proper capacity utilisation of the facilities. > BG Group will be the first plant in producing HR coil in Bangladesh EAF ( 1 x 220 T) mtpy 2.05
> Adequate market demand of Hot Rolled Coil
Major Assumptions > Locational advantage for Imported machineries and raw materials TSCR mtpy 2.00
> Financial analysis has been carried out on Constant price basis > IRR (post tax) is about 30.7% which is very attractive
Lime Calcining Plant TPD 1 x 425
> Debt equity ratio @ 70:30 and cost of debt at 10 % Points to be considered
> Environment Impact Assessment (EIA) Study to review the coastal Air Separation Plant TPD 1 x 435
> Exemption of taxes & duties for imported machineries. ecosystem, its potential hazards and to adopt a comprehensive
Environment Management Plan.
> Exemption of Import duty for Imported raw material. HBI EAF & LF Scrap
> Power Grid Strength has to be increased to cater 220 ton EAF 1 x 220 ton
2.046 mtpa
> Implementation period: 30 months from date of Go-ahead

> Suitable Hydrological Investigations needs to be carried out to
> Gross (incl VAT) Selling price of HRC : Rs. 70,000 per ton. ascertain the water source on a sustainable basis for un-interrupted Liquid steel
> Net (excl VAT) Selling price of HRC : Rs. 68,800 per ton. operation of the steel plant
> Natural Gas price has been considered at 9.62 BDTper scm > Review the aspect of bringing the Natural Gas from the nearest TSCR
available source 1 x 2.0 mtpa
> Electrical energy tariff has been considered at 7.95 BDTper
Kwh and Demand charge at 40 BDT/KW/month Hot Rolled Coil
Cap. 1st yr 2nd yr 3rd yr 4th yr 5th yr CAPITAL COST BREAK-UP

Key Production Figures, MTPY mtpy 6 m opn
(7), 12.7%
Utilisation (TSCR Capacity) 35% 75% 85% 95% 100%
(6), 4.2%
120.0%
(4), 52.9%
(5), 3.6%
Hot rolled Coil 2.000 0.700 1.500 1.700 1.900 2.000 100.0%
Projected price and cost, BDT/Ton 80.0%

Net Sales Realisation (excl. of VAT)
(3), 23.4%
Hot Rolled Coil 68,800 68,800 68,800 68,800 68,800 60.0%
Burnt Lime & Dolo Fines 6,000 6,000 6,000 6,000 6,000
Limestone & Dolomite Fines 1,200 1,200 1,200 1,200 1,200 40.0%
(2), 1.7%
SMS Slag 500 500 500 500 500
(1), 1.4%
Landed Cost of Raw Material & Electrode, BDT/ton 20.0%
HBI 31,800 31,800 31,800 31,800 31,800
Scrap 33,000 33,000 33,000 33,000 33,000 0.0%
Limestone 2,300 2,300 2,300 2,300 2,300
Dolomite 2,400 2,400 2,400 2,400 2,400
FeMn 120,200 120,200 120,200 120,200 120,200 million BDT

SiMn 111,600 111,600 111,600 111,600 111,600 (1) Land 1,004.1
FeSi 148,900 148,900 148,900 148,900 148,900 (2) Enabling Work 1,224.2
Electrode 840,900 840,900 840,900 840,900 840,900 (3) Civil & Structural work 16,490.9
Scenario Analysis (4) Plant & Equipment as erected 37,294.9
Scenario 1 : Escalation has been considered on price of Raw material and Electrode, Cost of Electrical (5) DE&ADC 2,555.4
energy and Natural Gas, Manpower cost, Net realisation and Capital Cost Capital cost w/o Contingency 58,569.5
(6) Contingency 2,928.5
Scenario 2 : On Base case various sensitivity analysis has been carried out on IRR (Post tax), DSCR and (7) Other costs 8,979.0
Pay back period with variation in HBI & Scrap price, NSR and Capital Cost. Total Capital Cost 70,476.9
Financial Projections
Annual, Million BDT 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr FINANCIAL INDICATORS
BASE CASE BASE CASE
Revenue, net 48,264 103,424 117,214 131,003 137,898 137,898 137,898
Cost of Goods Sold 36,200 76,855 86,863 96,872 101,876 101,876 101,876 Internal rate of return (post tax), % 30.7%
Gross profit 12,064 26,569 30,350 34,132 36,023 36,023 36,023 Payback period, years 3.8
SG & A expenses 241 517 586 655 689 689 689 Debt Service Coverage Ratio (DSCR) 3.5
EBITDA 11,823 26,052 29,764 33,477 35,333 35,333 35,333 Breakeven capacity utilisation, % 25.2%
EBITDA Margin, % 24.5% 25.2% 25.4% 25.6% 25.6% 25.6% 25.6%
SCENARIO 1 SCENARIO 1
Revenue, net 49,728 107,628 123,199 139,072 147,857 149,337 150,832
Cost of Goods Sold 38,644 83,735 96,558 109,876 117,905 120,307 122,764 Internal rate of return (post tax), % 24.3%
Gross profit 11,084 23,892 26,641 29,196 29,951 29,030 28,068 Payback period, years 4.4
SG & A expenses 249 538 616 695 739 747 754 Debt Service Coverage Ratio (DSCR) 2.8
EBITDA 10,836 23,354 26,025 28,500 29,212 28,283 27,314 Breakeven capacity utilisation, % 31.1%
EBITDA Margin, % 21.8% 21.7% 21.1% 20.5% 19.8% 18.9% 18.1%
MANUFACTURING EXPENSES SCENARIO 2

Sl. Description Escalation IRR Payback
Other conversion cost Overheads Redn (post tax) DSCR period
7.0% 1.6%
A. Sensitivity Analysis to single variation
Natural Gas
A.1 Base case 30.7% 3.5 3.8
0.9%
A.2 Capital cost (+) 5% 29.5% 3.4 3.9
(+) 10% 28.3% 3.2 4.1
Power A.3 Input material price (+) 10% 23.1% 2.7 4.8
11.8% A.4 Net sales realisation of HR Coil (-) 5% 24.7% 2.8 4.6
(-) 10% 18.5% 2.1 5.7
B.1 Sensitivity to multiple variations

- Capital cost (+) 5%
- Input material price (+) 5% 22.3% 2.6 4.9
- Net sales realisation of HR Coil (-) 3%
B.2 Sensitivity to multiple variations
- Capital cost (+) 20%
Raw material - Input material price (+) 10% 24.9% 2.8 4.5
78.8% - Net sales realisation of HR Coil (+) 5%
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, Technology & Finance in Metals, Mining & Energy
© 2016- M N DASTUR & CO (P) LTD . ALL RIGHTS RESERVED

BASHUNDHARA GROUP
Integrated Steel Plant at Chittagong, Bangladesh
Techno-Economic Feasibility Report
TABLE OF CONTENTS
Page
1 - INTRODUCTION................................................................. 1-1
1.1 Background ......................................................................... 1-1

1.2 Authorisation ....................................................................... 1-1
1.3 Methodology and Approach ...................................................... 1-1
1.4 Structure of the Report ........................................................ 1-2
1.5 Acknowledgement ..................................................................... 1-3
2- PROJECT LOCATION AND PLANT SITE ............................. 2-1
2.1 Project Location ........................................................................ 2-1

2.2 Site Features ........................................................................ 2-1
2.2.1 Present Status of Site ........................................................ 2-3
2.3 Climatic Conditions .................................................................. 2-7
3- MARKET STUDY ................................................................ 3-1
3.1 Preamble ................................................................................... 3-1

3.2 Economy ................................................................................... 3-1
3.2.1 General ................................................................................... 3-1
3.2.2 Gross Domestic Product (GDP) ............................................. 3-2
3.2.3 Structural Shift ................................................................. 3-4
3.3 Steel Scenario ........................................................................... 3-7
3.3.1 Production ........................................................................ 3-7
3.3.2 Capacity ............................................................................... 3-10
3.3.3 Steel Trade ........................................................................... 3-12
3.3.4 Ship Breaking....................................................................... 3-14
3.3.5 Recovery and Recycling ...................................................... 3-19
3.3.6 Recovery Estimates ........................................................ 3-23
3.3.7 Market Size .................................................................... 3-24
3.3.8 Consumption .................................................................. 3-26
2.3.8.1 Availability – Semi-finished Steel .......................................... 3-26
2.3.8.2 Domestic Consumption ........................................................ 3-28
3.3.9 Long Products ................................................................ 3-37
3.4 Flat Steel ................................................................................. 3-39
3.4.1 Apparent Demand ........................................................... 3-41
3.4.2 Actual Demand .................................................................... 3-46
3.5 Demand Forecast ............................................................... 3-50
3.5.1 Market Segments ............................................................ 3-50
3.5.2 Demand Drivers ................................................................... 3-51
3.5.3 Demand Forecast ............................................................ 3-58
3.5.4 Product-wise Demand ..................................................... 3-62
3.6 Export Potential ................................................................. 3-66
3.7 Observations ...................................................................... 3-69
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3.8 Recommendation ..................................................................... 3-70
4 - PROJECT CONCEPT ........................................................... 4-1
4.1 Project Concept, Process Route and Plant Capacity .............. 4-1
4.2 Product-mix ............................................................................... 4-1
4.3 Option Study ....................................................................... 4-2
4.3.1 Basic Considerations .............................................................. 4-2
4.3.2 Available Options .................................................................. 4-2
4.3.3 Evaluation of Options ............................................................ 4-3
4.3.4 Analysis of Options ............................................................... 4-4
4.4 capacity of steel melt shop ........................................................ 4-6
4.5 Selection of Charge Mix ........................................................... 4-6
4.6 Selection of technology for SMS .............................................. 4-6
4.7 Selection of Technology for Rolling Mill .................................... 4-9
4.8 Plant Configuration ........................................................... 4-10
4.9 Plant Materials Flowsheet .................................................. 4-10
5 - MAJOR PLANT FACILITIES .............................................. 5-1
5.1 Raw Material Handling and Storage System ............................ 5-1

5.1.1 Requirement of Raw Materials .............................................. 5-1
5.1.2 Unloading and Storage Facility ............................................. 5-1
5.1.3 Despatch of Raw Material to Various Consuming Units ....... 5-3
5.2 Calcining Plant .......................................................................... 5-4
5.2.1 Kiln Design and Capacity ...................................................... 5-4
5.2.2 Raw Materials ........................................................................ 5-7
5.2.3 Plant Facilities ....................................................................... 5-7
5.2.4 Raw Materials Handling ........................................................ 5-7
5.2.5 Shaft Kiln ............................................................................... 5-8
5.2.6 Product Handling ................................................................... 5-8
5.2.7 Other Facilities ...................................................................... 5-8
5.3 Steelmaking ............................................................................... 5-9
5.3.1 Steel Melt Shop Configuration .............................................. 5-9
5.3.2 Production Programme ........................................................... 5-9
5.3.3 Selection of Major Equipment ............................................. 5-10
5.3.4 Annual Requirement of Raw Materials and Supplies ....... 5-14
5.3.5 Technical Features of Main Equipment and Facilities ...... 5-14
5.3.6 Major Facilities .................................................................... 5-21
5.3.7 Steelmelt Shop Configuration .............................................. 5-25
5.4 Rolling Mill ................................................................................ 5-27
5.4.1 Thin Slab Casting and Rolling ............................................. 5-27
5.4.2 Design Basis ........................................................................ 5-28
5.5 Air Separation Plant .......................................................... 5-39
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TABLE OF CONTENTS
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6 - UTILITY AND SERVICE FACILITIES .................................. 6-1
6.1 Electric Power ........................................................................... 6-1

6.1.1 Plant Power Requirements ..................................................... 6-1
6.1.2 Characteristics of Plant Loads ........................................... 6-1
6.1.3 Source of Power ........................................................................ 6-2
6.1.4 Emergency Power Supply ...................................................... 6-2
6.1.5 Construction Power Supply ............................................... 6-2
6.1.6 Power Distribution System .................................................... 6-2
6.1.7 Power Distribution Arrangement ........................................... 6-3
6.1.8 Selection of Electrical Equipment ......................................... 6-5
6.1.9 Power Transformers ............................................................... 6-5
6.1.10 HV and LV Switchgears ........................................................... 6-6
6.1.11 System Relaying and Metering .............................................. 6-7
6.1.12 Reactive Power Compensation ............................................... 6-7
6.1.13 Energy Saving Measures ................................................... 6-7
6.1.14 Substation Automation System .......................................... 6-8
6.1.15 Diesel Generator Set ......................................................... 6-8
6.1.16 Uninterrupted Power Supply Unit (UPS) ............................... 6-9
6.1.17 Motors and Controls .......................................................... 6-9
6.1.18 Power and Control Cables ................................................... 6-11
6.1.19 Interplant Cabling ........................................................... 6-12
6.1.20 Earthing and Lightning Protection ...................................... 6-12
6.1.21 Plant Lighting System .......................................................... 6-12
6.2 Water System ..................................................................... 6-14
6.2.1 Water Requirement ......................................................... 6-14
6.2.2 Source of Water ................................................................... 6-15
6.2.3 Plant Water System ......................................................... 6-15
6.2.4 Industrial Make-up Water System ................................... 6-17
6.2.5 Soft Water System ............................................................... 6-17
6.2.6 Electric Arc Furnace Cooling Water System ....................... 6-17
6.2.7 Ladle Furnace Cooling Water System ................................. 6-17
6.2.8 Thin Slab Casting and Rolling ............................................. 6-18
6.2.9 Drinking and Sanitary Water System ............................... 6-18
6.2.10 Fire-fighting Water System .................................................. 6-19
6.2.11 Waste Water and Effluent Treatment Management ........... 6-19
6.2.12 Distribution System ........................................................ 6-19
6.2.13 Rainwater Harvesting ...................................................... 6-19
6.3 Utility System ......................................................................... 6-20
6.3.1 Fuel System ......................................................................... 6-20
6.3.2 Plant and Instrument Air System ..................................... 6-20
6.3.3 Air pollution, Ventilation and Air-conditioning .................. 6-21
6.3.4 Pipework .............................................................................. 6-22
6.3.5 Fire protection system ..................................................... 6-23
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6.4 Instrumentation, Automation, Plant Communication and
Fire Detection and Alarm Systems ........................................ 6-24
6.4.1 Instrumentation and Level-1 Automation System ............. 6-24
6.4.1.1 System Architecture ........................................................ 6-24
6.4.2 Supervisory Computer and Process Automation
System (Level-2) ................................................................ 6-28
6.4.2.1 Design Considerations ......................................................... 6-28
6.4.2.2 System Features .............................................................. 6-29
6.4.2.3 System Interfaces ............................................................ 6-30
6.4.2.3 Other Automation Systems .............................................. 6-30
6.4.2.4 Production Automation System (Level-3) ........................... 6-31
6.4.3 Plant Communication System .......................................... 6-32
6.4.3.1 Closed Circuit TV (CCTV) System ......................................... 6-32
6.4.3.2 Telephone System ................................................................ 6-33
6.4.3.3 Loudspeaker Inter-communication (LSIC) System .............. 6-33
6.4.3.4 VHF Wireless Communication System ................................ 6-34
6.4.3.5 Fire Detection and Alarm System ........................................ 6-34
6.5 Plant Layout and Transport Logistics ................................. 6-36
6.5.1 Plant layout .................................................................... 6-36
6.5.2 External Transportation .................................................. 6-37
6.5.2.1 Road ............................................................................... 6-37
6.5.2.2 Port ................................................................................. 6-39
6.5.3 In-plant Transportation ................................................... 6-39
6.6 Auxiliary Facilities .................................................................. 6-40
6.6.1 Laboratory ...................................................................... 6-40
6.6.2 Repair Shops ................................................................... 6-41
6.6.3 Central Stores ................................................................. 6-43
7 - ENVIRONMENTAL POLLUTION POTENTIAL AND

MITIGATION MEASURES .................................................. 7-1
7.1 Pollution Potential .................................................................... 7-1

7.2 Proposed Mitigation Measures .................................................. 7-1
7.2.1 Air Pollution Mitigation ......................................................... 7-2
7.2.2 Work-zone Pollution Mitigation ............................................. 7-3
7.2.3 Water Pollution Mitigation .................................................... 7-3
7.2.4 Solid Waste Generation and Disposal ................................ 7-4
7.2.5 Plant Greenbelt and Landscaping ...................................... 7-4
7.2.6 Other Energy Saving Measures .......................................... 7-4
8 - ORGANISATION AND MANPOWER ........................................ 8-1
8.1 Organisation Structure ......................................................... 8-1

8.1.1 Major Functions ................................................................ 8-3
8.1.2 Major Functions of Works Division ....................................... 8-3
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8.2 Basis of Manpower Estimate .................................................... 8-4
8.2.1 Total Manpower Requirement ................................................ 8-5
8.3 Training ............................................................................... 8-6
9 - PLANT CONSTRUCTION AND IMPLEMENTATION

SCHEDULE ....................................................................... 9-1
9.1 Volume of Construction Work .................................................. 9-1

9.2 Requirement of Construction Materials .................................... 9-2
9.3 Sourcing of Construction Materials .......................................... 9-2
9.3.1 Coarse Aggregates ................................................................. 9-3
9.3.2 Fine Aggregates ..................................................................... 9-3
9.3.3 Other Construction Materials ............................................ 9-3
9.4 Pre-construction Activities........................................................ 9-4
9.4.1 Survey and Soil Investigation Work ...................................... 9-4
9.4.2 Construction Facilities ...................................................... 9-4
9.4.3 Construction Water, Power and Lighting System ................ 9-5
9.5 Civil and Structural Work ......................................................... 9-7
9.5.1 Civil Work ................................................................................. 9-7
9.5.2 Structural Steel and Sheeting Work ................................... 9-8
9.6 Equipment Manufacture and Delivery ................................. 9-8
9.7 Equipment Erection ............................................................. 9-9
9.8 External Facilities ..................................................................... 9-9
9.9 Trial Run and Commissioning .................................................. 9-9
9.10 ImplementAtion Strategy ........................................................ 9-10
9.10.1 Possible Mode of Implementation ........................................ 9-10
9.11 Safety Requirements during Project Construction ............... 9-11
9.11.1 Health and Safety Policy .................................................. 9-11
9.12 Implementation Schedule ................................................... 9-12
10 - COST AND PROFITABILITY ........................................... 10-1
10.1 Capital Cost Estimate ......................................................... 10-1

10.1.1 Plant Cost ....................................................................... 10-1
10.1.2 Margin Money for Working Capital ..................................... 10-2
10.1.3 Preliminary and Pre-operative Expenses............................. 10-3
10.1.4 Interest during Construction ........................................... 10-3
10.1.5 Capital Cost Estimate ...................................................... 10-3
10.2 Annual Manufacturing Expenses ........................................ 10-4
10.2.1 Input Materials ............................................................... 10-4
10.2.2 Conversion Cost ................................................................... 10-4
10.2.3 Overheads ....................................................................... 10-5
10.2.4 Estimated Annual Manufacturing Expenses ..................... 10-5
10.3 Annual Sales Realisation ........................................................ 10-7
10.4 Financial Analysis ................................................................... 10-8
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10.4.1 Means of Financing.............................................................. 10-8
10.4.2 Normal Capital Expenditure ................................................ 10-9
10.4.3 Depreciation ......................................................................... 10-9
10.4.4 Repayment of Borrowings ................................................... 10-9
10.4.5 Working Capital ................................................................... 10-9
10.4.6 Interest Charges .............................................................. 10-9
10.4.7 Corporate Tax ....................................................................... 10-10
10.4.8 Financial Indicators ...................................................... 10-10
10.5 Scenario Analysis .................................................................. 10-11
TABLES
Table 3-1 – Bangladesh – GDP Trend ............................................................ 3-2

Table 3-2 – GDP – Sectoral Share Trend ....................................................... 3-4
Table 3-3 - GDP – Sectoral Growth Trend................................................. 3-6
Table 3-4 - Crude Steel - Production Trend ............................................... 3-8
Table 3-5 - Bangladesh – Primary Steel Producers ............................. 3-10
Table 3-6 - Steel Import Trend................................................................. 3-13
Table 3-7 – Bangladesh – Ship Breaking Trend .......................................... 3-16
Table 3-8 - Recovery of Recyclables – Type of Ships ................................. 3-20
Table 3-9 - Ship Breaking – Recovery and Recycle Estimates –
Current Trend 2017 .................................................. 3-24
Table 3-10 - Production of Secondary Re-rolling Sector – Current
Trend 2017 ............................................................... 3-24
Table 3-11 - Bangladesh – Domestic Steel Industry Size – 2017 ............ 3-25
Table 3-12 - Semi-finished Steel – Availability...................................... 3-27
Table 3-13 – Crude Steel Consumption Trend .................................... 3-29
Table 3-14 - Long Steel Products – Consumption ................................... 3-32
Table 3-15 - Flat Steel Products – Consumption ................................ 3-34
Table 3-16 - Consumption Trend – Total Fininshed Steel ................... 3-35
Table 3-17 - Bangladesh – Long Steel Produers (Re-rollers) ..................... 3-38
Table 3-18 - Flat Rolled Steel – Import Trend......................................... 3-41
Table 3-19 - Flat Rolled Steel Import – Size Analysis ............................ 3-43
Table 3-20 - Flat Rolled Coated Steel Import – Products ........................ 3-45
Table 3-21 - Flat Rolled Steel – Final Demand ....................................... 3-47
Table 3-22 - Coated Steel – Final Demand .............................................. 3-49
Table 3-23 - Flat Rolled Steel – Market Segments .................................. 3-50
Table 3-24 - Flat Rolled Steel – Demand Forecast .................................. 3-61
Table 3-25 - Flat Rolled Steel – Product-wise Demand ........................... 3-62
Table 3-26 - Coated Steel – Product-wise Demand ................................. 3-63
Table 3-27 - Steel Plates – Size-wise Demand ............................................ 3-64
Table 3-28 - HR Coils/Sheets – Size-wise Demand ........................................... 3-65
Table 3-29 - Export Potential – SAARC Import Trend ............................ 3-66
Table 3-30 - Export Potential – ASEAN Import Trend ............................ 3-68
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Table 4-1 - Product-mix ............................................................................. 4-2
Table 4-2 - Comparative Features of Option-1 and Option-2 ................... 4-3
Table 4-3 - Financial Summary of the Options ......................................... 4-5
Table 4-4 – Comparitive Features of Conventional and Scrap
Preheating Technologies ................................................. 4-7
Table 5-1 - Annual Consumption of Various Raw Materials and
Mode of Receipt .............................................................. 5-2
Table 5-2 – Net Requirement of Calcined Products ..................................... 5-4
Table 5-3 – Gross Requirement of Flux ........................................................ 5-4
Table 5-4 – Peak Requirement of Calcined Products .................................. 5-6
Table 5-5 – Raw Materials Analysis ........................................................... 5-7
Table 5-6 - Break-up of EAF Tap-to-Tap Time ........................................ 5-11
Table 5-7 - EAF with Scrap Preheating Facility Production
Calculation .................................................................... 5-12
Table 5-8 - Production Capability of Caster ............................................ 5-13
Table 5-9 - Requirement of Major Raw Materials and Supplies ............ 5-14
Table 5-10 - Design Parameters of Thin Slab Caster .............................. 5-19
Table 5-11 – Product Mix ......................................................................... 5-29
Table 5-12 - Average Hourly Requirement of Oxygen (NCUM/HR) ............5-39
Table 5-13 - Average Hourly Requirement of Nitrogen (NCUM/HR) ..........5-40
Table 5-14 - Average Hourly Requirement of Argon (NCUM/HR) ...............5-40
Table 6-1 – Estimated Plant Power Requirements ..................................... 6-1
Table 6-2 – Power Transformer Ratings..................................................... 6-6
Table 6-3 – Switchgear Ratings ................................................................. 6-6
Table 6-4 - Make-up Water Requirement ................................................ 6-14
Table 6-5 - Major Water Systems ............................................................ 6-16
Table 6-6 - Average hourly Requirement of NG (NCUM/HR) ........................6-20
Table 6-7 - Major Incoming Raw Materials ............................................. 6-38
Table 6-8 - Major Outgoing Products ...................................................... 6-38
Table 8-1 - Summary of Manpower ........................................................... 8-6
Table 9-1 – Estimated Volume of Major Items of Construction ................ 9-1
Table 9-2 – Requirement of Major Construction Materials ....................... 9-2
Table 10-1 - Estimated Capital Cost of the Project .............................. 10-3
Table 10-2 - Total Cost of Input Material ................................................ 10-4
Table 10-3 - Annual Manufacturing Expenses ..................................... 10-6
Table 10-4 - Year-wise Manufacturing expenses ..................................... 10-7
Table 10-5 - Annual Sales Realisation .................................................... 10-8
Table 10-6 - Means of Financing ............................................................. 10-8
Table 10-7 - Financial Indicators........................................................... 10-10
Table 10-8 - Financial Indicators (Scenario 1) ........................................ 10-11
Table 10-9 - Sensitivity Analysis on IRR (Post Tax), DSCR and
Payback Period ........................................................... 10-12
Table 10-10 - Basis of WACC (Post Tax) .................................................. 10-13
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FIGURES
Fig. 2-1 - Site Location Map ...................................................................... 2-2

Fig. 2-2 - Bamonsundar Canal Within Site ............................................ 2-4
Fig. 2-3 – Site for Phase-I ............................................................................. 2-4
Fig. 2-4 – Site for Future Expansion ......................................................... 2-5
Fig. 2-5 – Site Development Work in Progress .......................................... 2-5
Fig. 2-6 – Dredging Work in Progress ........................................................ 2-6
Fig. 2-7 – Proposed Area for Jetty ............................................................. 2-6
Fig. 3-1 - Bangladesh - GDP Growth Trend .............................................. 3-3
Fig. 3-2 - GDP – Shifting Sectoral Pattern ................................................ 3-5
Fig. 3-3 - GDP - Sectoral Growth Trend .................................................... 3-6
Fig. 3-4 - Primary Steel – Production Trend .............................................. 3-9
Fig. 3-5 - Primary Steel Producers - Capacity ......................................... 3-11
Fig. 3-6 - Import Trend – Long and Flat Steel ......................................... 3-14
Fig. 3-7 - World Ship Breaking – Leading Nations .................................. 3-15
Fig. 3-8 - Bangladesh – Ship Breaking and Recycling Trend .................. 3-17
Fig. 3-9 - Ship Breaking - Steel Scrap Recovery and Recycling
Process .......................................................................... 3-21
Fig. 3-10 - Ship Breaking Process Flow - Material Recovery and
Recycling/Re-use ...........................................................................3-22
Fig. 3-11 - bangladesh Steel Industry – Sources to Destinations ........... 3-23
Fig. 3-12 - Bangladesh Steel Market – Major Products’ Shares ..................3-26
Fig. 3-13 – Crude Steel Consumption – Sourcing Pattern ...................... 3-30
Fig. 3-14 – Crude Steel Consumption Trend ........................................ 3-30
Fig. 3-15 – Finished Steel Consumption Trend – Long and Flat ............. 3-36
Fig. 3-16 - Consumption Trend – Long and Flat Steel Shares ................ 3-36
Fig. 3-17 - Secondary (Long) Steel Producers - Capacity ........................ 3-39
Fig. 3-18 - Import Trend – Flat Rolled Steel ............................................ 3-42
Fig. 3-19 - Coated Steel – Product-wise Import....................................... 3-46
Fig. 3-20 - Flat Steel – Current Scenario ................................................ 3-48
Fig. 3-21 - Coated Steel – Current Scenario ............................................ 3-49
Fig. 3-22 - Flat Steel – Consumption Trend ......................................... 3-59
Fig. 3-23 - Future Demand of Flat Rolled Steel ...................................... 3-61
Fig. 3-24 - Demand Forecast – Flast Products ........................................ 3-63
Fig. 3-25 - SAARC – Flat Steel Importing Countries ............................... 3-67
Fig. 3-26 - SAARC – Flat Steel Importing Products ................................ 3-67
Fig. 3-27 - ASEAN – Flat Steel Imorting Countries ................................. 3-68
Fig. 3-28 - ASEAN– Flat Steel Imorting Products .................................... 3-69
Fig. 5-1 - Material Balance for Lime .......................................................... 5-5
Fig. 5-2 - Material Balance for Calcined Dolo ........................................... 5-6
Fig. 8-1 - Proposed Organisation Structure ........................................... 8-2
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BASHUNDHARA GROUP
TABLE OF CONTENTS
(Continued)
Page
APPENDICES
Appendix-4-1 – Plant Materials Flowsheet ....................................................1

Appendix-5-1 – List of Major Equipment for Raw Material Handling
System .......................................................................... 2
Appendix-5-2 – List of Major Equipment for Calcining Plant .......................3
Appendix-5-3 – List of Major Equipment and Facilities for Steelmel t
Shop .............................................................................. 4
Appendix-5-4 - List of Major Equipment for Tunnel Furnace and
Hot Strip Mill ......................................................................7
Appendix-5-5 – List of Major Equipment for Air Separation Plant ................9
Appendix-6-1 – List of Major Equipment for Electric Power
Distribution System ...................................................... 10
Appendix-6-2- List of major Equipment/Systems for common Water
Facility ..............................................................................12
Appendix-6-3- List of Major Equipment for Utility Systems ......................13
Appendix-6-4 – List of Major Equipment for Instrumentation,
Automation, Plant Communication and Fire
Detection and Alarm System ............................................14
Appendix-6-5 – List of Major Equipment for Laboratory ............................. 15
Appendix-6-6 – List of Major Equipment for Repair and
Maintenance Shop ........................................................ 16
Appendix-9-1 – Project Implementation Schedule .......................................18
Appendix-10-1 – Profit & Loss Statement ...................................................19
Appendix-10-2 - Cash Flow Statement ........................................................20
Appendix-10-3 - Internal Rate of Return (Post tax) ....................................21
Appendix-10-4 - Payback Period .................................................................22
Appendix-10-5 - Debt Service Coverage Ratio (DSCR) ................................23
Appendix-10-6 - Breakeven Analysis (1st year of 100% CU) ......................24
DRAWINGS
Drg. No.30691-97A-000-ELE-0001 … Overall Power Distribution
System – Block Diagram
Drg. No.30691-97A-000-WTS-0001 … Schematic Water Flow Diagram
Drg. No.30691-97A-000-LTL-0001 … Plant General Layout
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BASHUNDHARA GROUP
1 - INTRODUCTION
1.1 BACKGROUND
Bashundhara Group (BG) is a flagship company of
Bangladesh, with footprints in real estate, cement, paper and pulp, LPG
bottling and distribution as well as a wide range of other industries. BG
intends to set up a 2.0 million tons per year green field integrated s teel
plant through electric arc furnace route with scrap as the major charge
material and producing hot rolled coils. BG has already been allotted land
in the Mirsharai Economic Zone (MEZ) located at Mirsarai upazila,
Chittagong District for setting up the steel plant.
1.2 AUTHORISATION
Bashundhara Group, vide agreement dated 13 th November 2018,
commissioned Dastur Engineering International (GMBH) – Abu Dhabi., in
association with M. N. Dastur & Company (P) Ltd, Consulting Engineers, for
the preparation of a Techno-Economic Feasibility Report (TEFR) for
installation of green field integrated steel plant in Chittagong, Bangladesh.
As per the agreement, the process route for TEFR shall be electric arc furnace
– thin slab casting and rolling.
1.3 METHODOLOGY AND APPROACH

A team of CONSULTING ENGINEERS visited the proposed
site in December 2018 and discussions were held w ith BG to finalise the
inputs for preparation of the Report. Based on these considerations,
options study for the proposed steel project was carried out. Discussions
were held with BG team in February 2019 and the option to be adopted as
the basis for preparation of the report was selected. The final inputs for
cost and financials were received from BG after the visit. Discussions were
again held with BG team in February 2019 to finalise the cost and
financials for the report.
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1 - Introduction (cont’d)
Various options were evaluated based on the available

technology, increased productivity, available infrastructure, process
flexibility, lower operating cost and meeting environmental requirements.
Energy efficient EAF with adoption of scrap preheating technology and
thin slab casting and rolling technology were evaluated to be the suitable
alternative to achieve the target production. The charge mix for
steelmaking shall comprise of 70 percent purchased scrap and 70 percent
purchased HBI.
Various alternatives for the plant layout were evaluated

considering constraints of space, in plant logistics and unidirectional flow
of material.
1.4 STRUCTURE OF THE REPORT

The Techno-Economic Feasibility Report comprises the
following chapters:
Chapter 1 - Introduction
Chapter 2 - Plant Location and Plant Site
Chapter 3 - Market Study
Chapter 4 - Project Concept
Chapter 5 - Major Plant Facilities
Chapter 6 - Utility and Service Facilities
Chapter 7 - Environmental Pollution Potential and
Mitigation Measures
Chapter 8 - Organisation and Manpower

Chapter 9 - Plant Construction and Implementation
Schedule
Chapter 10 - Cost and Profitability
The chapters are supported by drawings/appendices as

required.
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1 - Introduction (cont’d)
1.5 ACKNOWLEDGEMENT
CONSULTING ENGINEERS gratefully acknowledge the co-
operation and assistance extended by Bashundhara Group during the preparation
of this TEFR.
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2 - PROJECT LOCATION AND PLANT SITE
This Chapter presents the details of location, site conditions and

present status to the project site for the greenfield i ntegrated Steel Plant (ISP)
at Mirsharai, Chittagong, Bangladesh.
2.1 PROJECT LOCATION

Government of Bangladesh with support from World Bank and
the Department for International Development, United Kingdom has
proposed to develop Economic Zones at various potential locations in
Bangladesh. Bangladesh Economic Zone Authority (BEZA) has identified
various locations for development of economic zones. One of the potential
economic zones is Mirsharai Economic Zone (MEZ) located on the eastern
bank of Sandwip Channel of Bay of Bengal at Mirsarai upazila, Chittagong
District. One plot has been identified for Bashundhara Group (BG) in this
economic zone for the proposed ISP.
2.2 SITE FEATURES

The site has a total area of about 500 acres. It is located about
60 km north-west of Chittagong city, within the MEZ. BG initially desired to
install the proposed steel plant facilities within approximately
150 acres of land and the remaining part will be used for future expansion.
Dhaka, the capital city is about 200 km north-west of the site. The
tentative co-ordinate of the site is 22°43'17”N / 91°28'4”E. This site falls
under Seismic Zone II. The nearest highway is four lane Dhaka-Chittagong
highway (N1), passing approximately 13 km east of the site. Dhaka-
Chittagong railway line is about 14 km east of the site. Mirsharai railway
station is about 15 km towards east. The Shah Amanat International
Airport and the Chittagong seaport at Chittagong is located at a distance of
about 80 Km and 67 Km respectively from the proposed site towards south.
Miscellaneous other industries like textile,
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Integrated Steel Plant at Chittagong, Banglade sh
2 - Project Location and Plant Site (cont’d)
paint, garments etc. have also been planned within the proposed MEZ.
Plantation has been observed on the east side. A super dyke is under
construction along the coast of Bay of Bengal is on the west side. Fig 2.1
below shows the location of the proposed site.
FIG. 2-1 - SITE LOCATION MAP
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2.2.1 Present Status of Site

The project land is Government land under MEZ and the type of
land is wetland in nature, as informed by Bashundhara Group during site
visit. The land is low lying coastal land and gets inundated during tide in
sea. Site development work is presently in progress where sand for filling
is sourced from deep sea as it is diff icult to obtain by dredging the river or
other nearby water bodies or by excavating the nearby high land. Dredging
work is carried out by licensed dredging agencies. The finished ground level
is proposed to be +8m above mean sea level, as informed by BG officials
during site visit.
Bamonsundar canal flowing from east to west divides the land

of BG into two parts. The canal has originated from eastern high land and
has number of tributaries. The present confluence of the canal with Swandip
Channel is quite wide. It is informed during the site visit that BG has a plan
to reroute the canal and fill up the portion within the premise of BG with the
help of BEZA, in order to achieve a contiguous land. However, this is not
yet studied and confirmed.
A super dyke and slope protection work is being carried out by

BEZA all along the coastal face of the proposed MEZ to protect the site
from flooding, erosion, ingress of saline water etc. during high tide and
natural calamities. Height of the proposed super dyke will be +9m above
mean sea level as learnt during site visit. This will also be used as main
approach road to the site. As per information received, the dyke road will
be a four lane road.
Because of the very soft clay, the proposed ISP site is not
accessible. However, the project area can presently be approached through
an under developed single lane earthen road along the north- west of the
site. It is planned to widen this road to two lanes in near
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future by BEZA. This road is further connected to Dhaka-Chittagong

highway via Abu Torab road.
In order to have some preliminary idea about the site, few snaps,
captured during site visit made in December 2018 are appended below:
FIG. 2-2 - BAMONSUNDAR CANAL WITHIN SITE
FIG. 2-3 – SITE FOR PHASE-I
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BASSUNDHARA GROUP
FIG. 2-4 – SITE FOR FUTURE EXPANSION
FIG. 2-5 – SITE DEVELOPMENT WORK IN PROGRESS
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FIG. 2-6 – DREDGING WORK IN PROGRESS
FIG. 2-7 – PROPOSED AREA FOR JETTY
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BASSUNDHARA GROUP
2.3 CLIMATIC CONDITIONS

The climatic conditions pertaining to the plant site are as indicated
below:
39oC
9 oC
70-85%
2540 mm
60.17 mm/hr
f) 2-7 m/s
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BASHUNDHARA GROUP
3 - MARKET STUDY
3.1 PREAMBLE
Bangladesh’s growth story is one that few saw coming. In the
face of persistent challenges, the country’s stable economic growth has
provided the bedrock for a prosperous future. With a forecasted growth
rate that’s only second to India,
3.2 ECONOMY
3.2.1 General
Bangladesh is undergoing a transformation from a low- income
to a middle-income economy. The South Asian country continues to generate
strong growth - projected at around 7 percent for 2018 - driven by consumer
spending and investment’ – IMF Country Focus (June 2018).
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3 - Market Study (cont’d)
Growth in Bangladesh has averaged more than 6 percent over

the last decade, significantly lifting per capita income. Poverty has
declined steadily and other social indicators, like gender disparity in
3.2.2 Gross Domestic Product (GDP)
TABLE 3-1 – BANGLADESH – GDP TREND

GDP
Annual Growth
Year (Billion Taka at Constant
(%)
Prices)
2007-08 5,474 -
2008-09 5,751 5.1
2009-10 6,071 5.6
2010-11 6,463 6.5
2011-12 6,885 6.5
2012-13 7,299 6.0
2013-14 7,741 6.1
2014-15 8,248 6.5
2015-16 8,835 7.1
2016-17 9,479 7.3
2017-18 10,224 7.9
Note: CAGR – 6.45% , Trend Line – 6.66% and Annual Growth – 8.67%
Source: Bangladesh Statistical Yearbook 2017 published by Bangladesh
Bureau of Statistics – May 2018
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The rate of economic development is among the highest in the

South-Asian region. The ‘Vision 2021’ document has set a target of
achieving 10 percent growth by 2021. The government’s efforts, as
reflected in the strategy papers of the 6 th and 7 th , 5-year planning documents
are geared towards achieving this milestone. It appears that Bangladesh
economy is well on its way to achieve this desired goal.
The GDP growth trend is depicted graphically in the following

diagram (Fig. 3-1).
FIG. 3-1 - BANGLADESH - GDP GROWTH TREND
The IMF has forecast a 7 percent compounded annual growth of

the Bangladesh economy till 2023 signaling all round growth in all sectors
including manufacturing.
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3.2.3 Structural Shift

From a predominantly agrarian economy and a wide divide
between the urban and the rural income, the development strategy followed
by the Bangladesh government brought about a gradual, yet a definite
alteration in the county’s economic structure . The pragmatic polices
adopted by the successive 5-year planning periods have been largely
successful in strengthening the economic transformation process of
Bangladesh from an agrarian economy towards a more manufacturing and
modern service driven economy. This will be evident from the changing
patterns of the relative shares of the agriculture, industry and the service
sectors in the overall composition of the GDP noticed over the past ten
years since 2007-08. The relevant data are furnished in Table 3-2
below.
TABLE 3-2 – GDP – SECTORAL SHARE TREND

(% )
Year Agriculture Industry Service Total
2007-08 18.68 26.12 55.20 100.00
2008-09 18.36 26.53 55.11 100.00
2009-10 18.38 26.78 54.84 100.00
2010-11 18.00 27.38 54.62 100.00
2011-12 17.38 28.08 54.54 100.00
2012-13 16.77 29.00 54.23 100.00
2013-14 16.50 29.55 53.95 100.00
2014-15 16.01 30.42 53.57 100.00
2015-16 15.35 31.54 53.11 100.00
2016-17 14.73 32.42 52.85 100.00
2017-18 14.23 33.66 52.11 100.00

Source: Bangladesh Statistical Yearbook 2017 published by Bangladesh Bureau of Statistics
– May 2018
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The changing pattern of the nation’s economy is depicted

graphically in the following diagram (Fig. 3-2).
FIG. 3-2 - GDP – SHIFTING SECTORAL PATTERN
The above analysis reveals that Bangladesh has made

significant progress in strengthening the industry sector. As planned, the
industry sector, dominated by manufacturing, grew at much higher rate
than those of the agriculture and service sectors. The changing pattern of
the past growth trend since 2007-08 is furnished in Table 3-3 on the next
page.
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TABLE 3-3 - GDP – SECTORAL GROWTH TREND

(% )
Manufacturing
Year Agriculture Industry Service
(in Industry)
2007-08 4.49 7.03 5.76 7.33
2008-09 3.47 6.91 5.08 6.69
2009-10 6.15 7.03 5.53 6.65
2010-11 4.46 9.02 6.22 10.01
2011-12 3.00 9.44 6.58 9.96
2012-13 2.46 9.64 5.61 10.31
2013-14 4.37 8.16 5.62 8.77
2014-15 3.33 9.67 5.80 10.31
2015-16 2.79 11.09 6.25 11.69
2016-17 2.97 10.22 6.69 10.97
2017-18 4.19 12.06 6.39 13.40
Source: Bangladesh Statistical Yearbook 2017 published by Bangladesh Bureau
of Statistics – May 2018
The industry sector, dominated by the manufacturing activities, is

growing at the fastest rate, which is a welcome sign from the point of
investment opportunity.
The above sectoral growth trends are depicted graphically in the

following diagram (Fig. 3-3).
FIG. 3-3 - GDP - SECTORAL GROWTH TREND
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On narrowing the rural-urban divide by diversifying the

economic activity base, Bangladesh has made considerable progress too. As
planned, the rural economy is getting transformed from a predominantly
agriculture based production structure towards a more non- farm based
production activities. Evidence shows that agriculture is no longer the
predominant source of income. The expansion of non-farm rural enterprises
and services has opened up new sources of income and employment. The
growth of income from non-farm sources and the rapid inflow of foreign
remittances have supported the increase in demand for a range of activities
in construction, housing, trade, transport, schooling, health and other
services. The expansion of information technology and communication
network and related services along with growth of rural electricity and rural
roads have reduced the transaction costs between the rural and urban
economies, thereby facilitating better trade and higher prices for the
products of the rural economy. The progress on rural transformation
provides a strong base to move forward further in future.
3.3 STEEL SCENARIO

3.3.1 Production
Steel industry is an established and growing industry in
Bangladesh. Predominantly based in the port city of Chittagong the industry
has emerged as a good contributor to the national economy. The growth of
steel industry in Bangladesh is mainly induced by the expansion of the
country's shipbuilding and real estate sectors, as well as the major
investments in various infrastructure projects throughout the country.
According to historical records of World Steel Association

Bangladesh did not have any significant facility to produce primary steel
i.e. crude or liquid steel cast into semi-finished forms like billets, of its
own till 2008. Till that time the country’s entire demand of semi -finished
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BASHUNDHARA GROUP
and finished steel used to be met by imports from abroad and arising from
a ship breaking and recycling industry in the country. Bangladesh entered
into the league of steel producers in 2008 but the country’s
TABLE 3-4 - CRUDE STEEL - PRODUCTION TREND
Year Production
2008 50
2009 70
2010 78
2011 85
2012 87
2013 356
2014 619
2015 1,148
2016 2,018
2017 2,640
The past production trend exhibited two distinct phases of

growth – one low and subdued matching with the sluggish growth of the
nation’s economy and the other a period of rapid ascendancy out
shadowing the economic growth. Given, the extended period of deficiency in
the availability of adequate infrastructural facilities in the past, the nation is
presently on an overdrive to make up for the lost time generating, in the
process, a virtual boom in the construction sector of
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BASHUNDHARA GROUP
the country. The domestic steel producers responded to this challenge by

investing and creating additional facilities to produce crude or liquid steel.
This phase of accelerated production in response to rapid increase
FIG. 3-4 - PRIMARY STEEL – PRODUCTION TREND
Bangladesh steel industry having invested heavily in creating

crude steel making facilities in the recent past is on a path of rapid
ascendancy. The growth rates, because of relatively low levels of
production in the pat continue to defy any definable trend. But the rapid
increase in production witnessed in the recent past speaks volumes of the
resilience of the industry in responding to the fast developing market
economy of the nation. The scenario also points towards a brigh ter
prospect of the industry and its future potential.
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3.3.2 Capacity
TABLE 3-5 - BANGLADESH – PRIMARY STEEL PRODUCERS
Annual Capacity
Primary Steel Producers (Million Tons)
Current 2018 Expected 2020
Abul Khair Steel (AKS) 1.400 1.400
BSRM Group (BSRM) 1.237 1.237
Kabir Steel Rolling Mills Ltd (KSRM) 0.600 1.100
GPH Ispat Ltd (GPH) 0.168 0.973
Others 0.170 0.170
Total 3.575 4.880
The producer-wise capacity figures along with the expansion

projects already underway are shown graphically in Fig 3-5 on the next page.
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BASHUNDHARA GROUP
FIG. 3-5 - PRIMARY STEEL PRODUCERS - CAPACITY
abroad. But, they soon realized the added benefits of making billets on
their backyards and started investing to produce billets through EAF/IF
and Continuous Casting (CC) route. As a consequence the c ountry’s steel
making capability received a major boost. Today in 2019, Bangladesh can
boast of primary or crude steel in the form of billet making capability to
the tune of 3.6 million tons per annum. This takes care of around 50 percent
of country’s billets required by its re-rolling industries at present.
GPH is expanding its billet making capacity from the existing

168,000 tons to nearly one million tons per year and KSRM is adding another half
a million tons to its existing billet making facilities b y 2020.
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BASHUNDHARA GROUP
It needs to be highlighted that in spite of creation of new capacities

to produce steel the growth in production of crude or primary
Steel Trade
dependent on international market for the feed-stocks like plates, hot

rolled and cold rolled coils, coated steel etc. The country has a limited
capacity to convert hot rolled coils into cold rolled and down the line
coated sheets and coils like galvanized and galvalume steel. As a result,
the country meets majority of its demand of coils, sheets and the coated
products sourced through import route. However, for steel plates, as the
country has no plate mill to roll flat steel slabs, the demand is met partly
through imports and partly through re-use of scraps generated by the local
ship breaking yards.
The above trend of import of billets and steadily increasing level of

imports of flat steel is evident from an analysis of the steel
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import data as available from the World Trade Organization’ s (WTO)

trade database (UN/UNCTAD) reproduced in Table 3-6 on the next page.
TABLE 3-6 - STEEL IMPORT TREND
Long Flat
Year Ingots/Semis Total Import
Products Products
2000 5 49 568 622
2001 24 24 389 437
2002 3 42 482 527
2003 25 43 811 879
2004 35 78 710 823
2005 297 45 934 1,276
2006 259 42 884 1,185
2007 157 5 947 1,150
2008 166 31 813 1,010
2009 577 55 1,150 1,781
2010 589 77 1,095 1,762
2011 796 121 1,403 2,320
2012 1,200 79 1,178 2,457
2013 1,052 81 1,222 2,356
2014 1,406 129 1,908 3,442
2015 1,759 177 2,593 4,529
2016 1,886 180 2,471 4,537
2017 1,810 201 2,730 4,741
Source: WTO Trade Database – UNCTAD/COMTRADE
The trend of long (including semis), flat steel products and total
steel imports is shown graphically in the following diagram (Fig. 3-6)
on the next page.
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FIG. 3-6 - IMPORT TREND – LONG AND FLAT STEEL
as the domestic production and availability from ship breaking and recycling
activities pick-up steam.
The imports of flat products are expected to witness an upward

trend till such time enough capacities are created within the country to produce
slabs, the primary fed-stock to produce plates and other flat products.
3.3.4 Ship Breaking

The presence of a highly developed ship breaking industry in
Bangladesh has added a unique dimension to its steel sector. Ranked
among the top three nations in the world, the ship breaking industry,
located in the Chittagong outer harbour complex, generates huge volume
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of steel scarps, which are readily recycled into the production and
consumption channels of the country’s steel sector.
The worldwide trend of ship breaking activity is indicated in
FIG. 3-7 - WORLD SHIP BREAKING – LEADING NATIONS
According to the final report for the IMO-NORAD SENSREC project

titled “Contributions of Ship Recycling in Bangladesh: An Economic
Assessment by Helal Ahammad, PhD, Department of Economics and
Mohammad Sujauddin, PhD Department of Environmental Science and
Management, North South University, Dhaka ( COPYRIGHT○C International Maritime
Organization 2017), Bangladesh is one of the leading ship recycling countries in the
world.
On average, the industry recycled over 175 ships totaling about

1.8 million light displacement tonnes (LDTs; the most relevant measurement
unit in ship recycling) a year over the past decade to 2015.
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BASHUNDHARA GROUP
Over this period, the Bangladesh ship recycling industry has

accounted for over 25 percent of the total ships scrapped (in LDTs) by the
five leading ship breaking nations; the four other being India, China,
Pakistan and Turkey.
In 2015, Bangladesh became the top ship recycling country in

the world, surpassing India once again since 2008. The past trend of ship
breaking in Bangladesh since 2000 is furnished in the following Table 3-
7.
TABLE 3-7 – BANGLADESH – SHIP BREAKING TREND
Year No of Ships LDT

(Million Tons)
2000 73 0.70
2001 152 1.70
2002 84 1.50
2003 88 1.00
2004 145 1.20
2005 94 0.80
2006 187 1.25
2007 103 0.80
2008 172 1.80
2009 175 2.25
2010 107 1.30
2011 150 2.30
2012 230 2.80
2013 158 2.28
2014 220 1.80
2015 194 2.28
2016 208 2.00
2017 197 2.00
Source: 1. Contributions of Ship Recycling in Bangladesh: An E conomic Assessment
by Helal Ahammad, Mohammad Sujauddin, 2. Aspects and Impacts of Ship
Recycling in Bangladesh Sohanur Rahman a, 10th International Conf erence on
Marine Technology, MARTEC 2016 3. Annual report of NGO Ship breaking platf orm
LDT – the most relevant imperial measurement unit in ship recycling, measures ship
displacement, in tons, without cargo, fuel, lubricating oil, ballast water, fresh water and feed water,
consumable stores, and passengers and crew and their effects on board, but including
liquids in piping up to working levels.
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The above ship breaking trend is shown graphically in the

following diagram (Fig. 3-8)
Source: Contributions of Ship Recycling in Bangladesh: An Economic Assessment by Helal Ahammad,

Mohammad Sujauddin,
FIG. 3-8 - BANGLADESH – SHIP BREAKING AND RECYCLING TREND
According to the report, despite the structural and cyclical ups

and downs in the global shipping and ship recycling markets, the ship
recycling industry in Bangladesh has managed a respectable growth,
estimated at about 14 percent a year on average since 1980. With expanded
capacity of breaking yards over the years, Bangladeshi breakers have
imported relatively large and diverse range of ships for recycling.
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The internationally competitive ship recycling industry of

Bangladesh is making valuable contributions to the national economy in
terms of value addition to GDP, additional revenues to ex-chequer in terms
of taxes and duties and above all generation of employment in large
measures.
In addition to these direct contributions, the industry is making

important indirect contributions to the national and local economies by
supporting and stimulating a host of economic activities along its supply
chain − upstream and downstream, including domestic steel
manufacturing, ship building and repairing services.
About 90 percent of all materials recovered from dismantled

ships (measured in Metric Tons) constituted various forms of steel scraps.
Typically, between 50 and 60 percent of these recovered steel scraps are used
in re-rolling mills in Bangladesh. A rage share of recovered steel scrap is re-
used directly in the fabrication process of new ships and vessels. As such,
steel scraps recovered from ship breaking contribute significantly as
domestically sourced feedstock into total steel manufacturing in Bangladesh.
In addition to steel scraps, ship breaking yards recover substantial

amount of non-ferrous metals, numerous machines, components and hardware
such as pipes, chains, bolts, anchors and propellers etc.
By ensuring ongoing supply of key feedstock to domestic steel

making as well as recovering other reusable or recyclable materials, ship
recycling has contributed to the development and growth of man y industries
in Bangladesh, and thereby playing an important role in broadening and
deepening the industrial base of the country.
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The industry has sustained its international competition due to

a combination of factors including adequate domestic demand f or steel scraps
and reusable materials and products; proximity to critical infrastructure and
a thriving industrial zone with many re -rolling mills and other ‘linkage’
industries; stable climate and geographical advantage; relatively affordable
labour; mature entrepreneurship; and enabling and conducive regulatory
environments.
The substantial domestic demand for steel scraps and the expected
ongoing global supply of recyclable ships from the pool of ageing global
merchant ships suggest a promising outloo k for the ship recycling industry in
Bangladesh.
3.3.5 Recovery and Recycling

The revenue generated by a ship recycling yard depends on what
types of materials can be extracted from a ship and out of those extracted,
what and how much can be classified and sold as recyclable and reusable
materials. Such classification mainly depends on applicable local and
international regulations and local market for reusable goods and scrap
metals, such as steel, nonferrous metals, etc. The markets for reusable goods
and scrap products differ from one country to another. In the advanced
European countries, steel scrap is generally completely melted down to make
new steel products whereas in Bangladesh and Indian subcontinent the steel
scrap is majorly heated and rerolled in reinforcing rods for use in the
construction industry. A part is directly re-used in the fabrication of ships
and ocean going vehicles in the vicinity of the local market.
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BASHUNDHARA GROUP
The type and extent of generation of steel scrap and other

recoverable materials is furnished in Table 3-8 below.
TABLE 3-8 - RECOVERY OF RECYCLABLES – TYPE OF SHIPS
Bulk
General Oil Tankers
Materials Recovered Carriers Average* (%)
Cargo (%) (%)
(%)
Re-Rollable Ferrous
56-70 61-75 72-81 70
Sheets
Melting Ferrous Scrap 10 8-10 5-7 10
Cast Iron Scrap 1.5-5 1.5-2.5 1.5-3 2
Non-ferrous Metals 0.5-1 0.50 0.5-2 1
Weight Loss 9-15 10-16 10-12 10
Machinery 4-8 1-6 0.5-2 4
Wooden Furniture and
5 1-5 1.5-2 3
Fittings / Fixtures
Source: Ship Breaking Industry – Challenges Ahead – Care Ratings July 31, 2018
‘*’ – Used in this study for calculating estimates of recycling materials
The process of dismantling and breaking of a ship generates large

amount of recoverable material to the extent of 90 percent of the weight of
the ship (LDT) with 10 percent recorded as weight loss. This includes steel in
various forms and shapes accounting for as much as 80 percent of the weight
of the ship. Depending on the size and shape of the recovered steel profiles
those are used for re-melting, re-rolling and re- use purposes. The recovery
of non-ferrous and other machinery components accounts for 10 percent of
the LDT of the ship. The processes pertaining to steel scrap recovery and
their recycling are shown graphically in the following diagram (Fig. 3-9).
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BASHUNDHARA GROUP
FIG. 3-9 - SHIP BREAKING - STEEL SCRAP RECOVERY AND

RECYCLING PROCESS
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BASHUNDHARA GROUP
The overall process of material recovery and recycling is

shown pictorially in the following diagram (Fig. 3-10).
FIG. 3-10 - SHIP BREAKING PROCESS FLOW - MATERIAL RECOVERY

AND RECYCLING/RE-USE
It may be seen from above that ship breaking is an import

source of raw materials for the steel industry segment of the Bangladesh’s
economy. The recovered steel items contribute substantially
towards the production or primary or crude steel and rerolled steel, apart
from enhancing consumption as direct re -use, mostly in ship fabrication
activities.
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BASHUNDHARA GROUP
The total material flow process of the steel industry, which is quite
unique to Bangladesh, is shown pictorially in the following diagram (Fig. 3-
11).
Source Sujauddin 2016
FIG. 3-11 - BANGLADESH STEEL INDUSTRY – SOURCES TO

DESTINATIONS
3.3.6 Recovery Estimates

According to the report by Mr. H. Ahammad and Mr. M.
Sujauddin referenced earlier, Bangladesh is presently recovering about
1.8 million tons of steel items – scraps, shapes and profiles – from the
domestic ship breaking activities annually. This is based on an annual average
ship breaking rate of 2.0 million LDT of condemned ships and vessels. On the
basis of the rates of generation and their shares in re- application as defined
above, the estimates of the likely quantum of such recovered and recycled
steel materials is furnished in Table 3-9 on the next page.
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BASHUNDHARA GROUP
TABLE 3-9 - SHIP BREAKING – RECOVERY AND RECYCLE

ESTIMATES – CURRENT TREND 2017
(Million Tons)
Recovery/ Recycle Quantity Final Product
Average Weight (LDT) per year 2.00

Ferrous and Non-ferrous
Materials including 1.80
Machinery (90% of LDT)
Recovery
Steel Scraps - Melting,
Rerollable and Re-usable 1.60
(80% of LDT)
Re-melted in IF/EAF
Melting Scrap
0.20 to produce crude
(10% of LDT)
steel – Concast Billets
Re-rolled into Bars,
Recycling Re-rollable Scrap
1.00 Rods and Structural
(50% of LDT)
Sections
Re-use Directly re-used as
0.40
(20% of LDT) Plates and Sheets
3.3.7 Market Size

On the basis of the discussions on production of crude or primary
steel, imports and ship breaking operations presented so far, the volume or
size of the Bangladesh’s steel industry in terms of finished steel,
excluding fabricated items, is computed as per the details furnished in
Tables 3-10 and 3-11 below.
TABLE 3-10 - PRODUCTION OF SECONDARY RE-ROLLING SECTOR –

CURRENT TREND 2017
Item Source Product Quantity

(Thousand Tons)
Production from
Billets 2,640
IF/EAF Route
Input Imports Ingots/Billets 1,810
Ship Breaking Rerollable Scrap 1,000
Total 5,450
Loss Processing Loss @ 10% (-) 545
Bars and Rods 4,505
Rerolled Products Sections – Angles,
Output 400
Cannels, Joists
Total 4,905
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BASHUNDHARA GROUP
In addition to the above, Bangladesh directly consumes steel

products like bars and rods, structural sections, rails, plates, coils, and
sheets of various types mostly sourced through import channel and further
supplemented by re-usable plates and sheets from the ship breaking
operations. The details are furnished in Table 3-11 below.
TABLE 3-11 - BANGLADESH – DOMESTIC STEEL INDUSTRY SIZE –

2017
(Thousand Tons)
Source
Reuse from Total
Product Re-rollers’
Imports Ship Consumption
Production
Breaking
Long Steel
Bars and Rods 4,505 55 - 4,560
Sections 400 125 - 525
Rails - 15 - 15
Total Long
4,905 200 - 5,100
Steel
Flat Steel
Plates
including HR - 190 260 450
Plates
HR
Coils/Sheets - 1,200 140 1,340
including
CR Coils and
- 115 - 115
Sheets
Coated Sheets - 1,300 - 1,300
Total Flat
- 2,805 400 3,205
Steel
Total Steel
4,905 3,005 400 8,305
(Finished)
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BASHUNDHARA GROUP
The current size or volume of the steel market of Bangladesh

is of the order 8.3 million tons per annum. The shares of various product
profile groups are shown graphically in Fig 3-12 below. The market is
dominated by bars and rods accounting 55 percent of the market volume
followed by sheets and coils at 33 percent, plates 6 percent and sections 6
percent.
FIG. 3-12 - BANGLADESH STEEL MARKET – MAJOR PRODUCTS’

SHARES
3.3.8 Consumption
2.3.8.1 Availability – Semi-finished Steel
Bangladesh, unlike other countries, has an additional source of
steel - finished and semi-finished- from its ship building yards. Hence, it
is important to assess the overall availability of semi -finished steel in terms
of billets and re-rollable scraps so as to arrive at an accurate estimate of
finished steel production and consumption (Table 3-12 on the next page).
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BASHUNDHARA GROUP
TABLE 3-12 - SEMI-FINISHED STEEL – AVAILABILITY

(Million Tons)
Ship Breaking Total

Year Production Imports Semi-
Re-rollable finished
LDT
Scarp
2000 - 0.70 0.35 - 0.35
2001 - 1.70 0.85 0.02 0.87
2002 - 1.50 0.75 - 0.75
2003 - 1.00 0.50 0.02 0.52
2004 - 1.20 0.60 0.04 0.64
2005 - 0.80 0.40 0.30 0.70
2006 - 1.25 0.63 0.26 0.89
2007 - 0.80 0.40 0.16 0.56
2008 0.05 1.80 0.90 0.17 1.12
2009 0.07 2.25 1.13 0.58 1.78
2010 0.08 1.30 0.65 0.59 1.32
2011 0.08 2.30 1.15 0.80 2.03
2012 0.09 2.80 1.40 1.20 2.69
2013 0.36 2.28 1.14 1.05 2.55
2014 0.62 1.80 0.90 1.05 2.57
2015 1.15 2.28 1.14 1.76 4.05
2016 2.02 2.00 1.00 1.89 4.91
2017 2.64 2.00 1.00 1.81 5.45
Note: Rerollable Scrap generation from ship breaking @50% of LDT scrapped.
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BASHUNDHARA GROUP
In the recent past, domestic production has become the major

contributor to the overall availability of semi -finished or re-rollable steel
in the country, currently accounting for almost ½ or 48 percent of the
availability. Imports at 1.8 million tons account for 1/3 rd or 33 percent of
the demand. Re-rollable scrap contributes the balance availability of 19
percent.
The domestic availability is increasing at exponential rates in the

recent past.
2.3.8.2 Domestic Consumption

The trend of domestic consumption of steel has been developed
in the following two parts:
i) Crude Steel: Production plus Imports and arising from

ship breaking yards in the form of semi-finished steel
without allowing for any processing loss.
ii) Finished Steel: In terms of long and flat products after

allowing for conversion loss.
Crude Steel: Table 3-13 on the next page furnishes the details
pertaining to the steel consumption trend in terms of crude steel.
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BASHUNDHARA GROUP
TABLE 3-13 – CRUDE STEEL CONSUMPTION TREND

(Million Tons)
Ship Breaking
Production Imports
Year from Re-rollable of All Consumption
IF/EAF and Re- Products
LDT
usable
Scrap
2000 - 0.70 0.49 0.62 1.11
2001 - 1.70 1.19 0.43 1.62
2002 - 1.50 1.05 0.52 1.57
2003 - 1.00 0.70 0.87 1.57
2004 - 1.20 0.84 0.83 1.67
2005 - 0.80 0.56 1.27 1.83
2006 - 1.25 0.88 1.18 2.06
2007 - 0.80 0.56 1.16 1.72
2008 0.05 1.80 1.26 1.01 2.32
2009 0.07 2.25 1.58 1.79 3.44
2010 0.08 1.30 0.91 1.77 2.76
2011 0.08 2.30 1.61 2.32 4.01
2012 0.09 2.80 1.96 2.46 4.51
2013 0.36 2.28 1.60 2.35 4.31
2014 0.62 1.80 1.26 3.09 4.97
2015 1.15 2.28 1.60 4.53 7.28
2016 2.02 2.00 1.40 4.54 7.96
2017 2.64 2.00 1.40 4.81 8.85
Note: Imports include both semi-finished and finished steel materials.
No conversion factor applied on finished steel imports to generate crude
steel equivalent.
The consumption of steel in Bangladesh is presently on a phase of

rapid ascendancy. The rising demand has induced expansion of the country’s
domestic steel making capability. With new capacities being added on a
regular basis, the share of domestic production which
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BASHUNDHARA GROUP
has been negligible in the past is now responsible for almost a quarter of the
consumption pie and the share is also increasing.
The current sourcing pattern is depicted in Fig. 3-13 and the

long term consumption trend in Fig. 3-14.
FIG. 3-13 – CRUDE STEEL CONSUMPTION – SOURCING PATTERN
FIG. 3-14 – CRUDE STEEL CONSUMPTION TREND
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BASHUNDHARA GROUP
Bangladesh witnessed two distinct phases of growth – a period

of subdued consumption till 2008 and a phase of steadily rising consumption
thereafter which further accelerated from 2014 onwards.
The acceleration of the domestic economy, renewed emphasis

on the infrastructure sector, the shift from agrarian to industrial, the
diminishing divide between the rural and urban markets and above all the
rise of the middle class with growing disposable income contributed
towards the ascendancy phase in the demand and consumption of steel.
Besides, the domestic consumption, which was somewhat subdued owing
to constrained availability of the raw material, namely billets till 2013 and
dependent almost entirely on imports, started attaining its full potentials
from 2014 onwards with the increased availability of billets from the
domestic sources. The steady increase in the domestic demand of flat steel,
sourced from international market, also contributed in the increase of
domestic steel consumption levels exhibited in the recent past.
The long term expansion rate of the domestic market has been
13 percent while in the mid to near term the market is expanding at even higher
rates – 18 percent since 2007 and 21 percent CAGR since 2014. The more
than usually considered normal values of CAGR for different time spans as
revealed by the graph are essentially becaus e of the exceptionally low base
values of the base periods. Such high CAGR values, for obvious reasons are
not sustainable in the long run. For future prediction purposes more robust
and sustainable growth rates are considered, which are discussed in the
relevant sections of the market study note.
Finished Steel: The rapidly developing steel consumption

scenario is further analyzed in terms of finished steel - long and flat steel
products. The conversion of crude steel or semi-finished steel into
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BASHUNDHARA GROUP
finished steel has been carried out assuming a processing loss @10 percent.
The output has been broken down into long steel and flat steel products. The
output also takes into account the quantities of re -usable scrap in the form of
plates and sheets obtained fro m the ship breaking activities.
The analysis is presented in Tables 3-14 and 3-15 on the

next pages.
TABLE 3-14 - LONG STEEL PRODUCTS – CONSUMPTION

(Million Tons)
Input Output
Imports of
Year Long Consumption
Semi-finished Bars and
Sections Total Products
Steel Rods
2000 0.35 0.29 0.03 0.32 0.05 0.37
2001 0.87 0.72 0.06 0.78 0.02 0.80
2002 0.75 0.62 0.05 0.68 0.04 0.72
2003 0.52 0.43 0.04 0.47 0.04 0.51
2004 0.64 0.53 0.05 0.58 0.08 0.66
2005 0.70 0.58 0.05 0.63 0.04 0.67
2006 0.89 0.73 0.06 0.80 0.04 0.84
2007 0.56 0.46 0.04 0.50 0.05 0.55
2008 1.12 0.93 0.08 1.01 0.03 1.04
2009 1.78 1.47 0.13 1.60 0.06 1.66
2010 1.32 1.09 0.10 1.19 0.08 1.27
2011 2.03 1.68 0.15 1.83 0.12 1.95
2012 2.69 2.23 0.19 2.42 0.08 2.50
2013 2.55 2.11 0.18 2.30 0.08 2.38
2014 2.57 2.13 0.19 2.31 0.13 2.44
2015 4.05 3.35 0.29 3.65 0.18 3.83
2016 4.91 4.07 0.35 4.42 0.18 4.60
2017 5.45 4.50 0.40 4.90 0.20 5.10

Note: The process of estimation of consumption in terms of finished steel is already defined for the
year 2017 in Tables 3-10 and 3-11 above. The same process is repeated and extended to the data on
own production, ship breaking and import arrivals in order to study the long term trend of
steel consumption in the country.
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BASHUNDHARA GROUP
The domestic consumption of long products is accelerating at

rates exceeding 20 percent in the medium to near term from 2008 and 2014
respectively.
Currently, structural sections at 126,000 tons, bars and rods

at 57,000 tons and rails at 17,000 tons account for 63 percent, 28 percent
and 9 percent of the import basket of 200,000 tons.
Bars and rods at 4.56 million tons, including imports,

dominate the consumption volume accounting for nearly 90 percent of the
domestic market. Structural sections share the 10 percent at 0.53 million
tons. Rails in the consumption basket of long products share the balance.
The consumption trend of flat steel products is furnished in

Table 3-15 on the next page.
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BASHUNDHARA GROUP
TABLE 3-15 - FLAT STEEL PRODUCTS – CONSUMPTION

(Million Tons)
Ship Breaking Imports

Year of Flat Consumption
Re-usable Products
LDT Plates Sheets
Scrap
2000 0.70 0.14 0.09 0.05 0.57 0.71
2001 1.70 0.34 0.22 0.12 0.39 0.73
2002 1.50 0.30 0.20 0.11 0.48 0.78
2003 1.00 0.20 0.13 0.07 0.81 1.01
2004 1.20 0.24 0.16 0.08 0.71 0.95
2005 0.80 0.16 0.10 0.06 0.93 1.09
2006 1.25 0.25 0.16 0.09 0.88 1.13
2007 0.80 0.16 0.10 0.06 0.95 1.11
2008 1.80 0.36 0.23 0.13 0.81 1.17
2009 2.25 0.45 0.29 0.16 1.15 1.60
2010 1.30 0.26 0.17 0.09 1.10 1.36
2011 2.30 0.46 0.30 0.16 1.40 1.86
2012 2.80 0.56 0.36 0.20 1.18 1.74
2013 2.28 0.46 0.30 0.16 1.22 1.68
2014 1.80 0.36 0.23 0.13 1.91 2.27
2015 2.28 0.46 0.30 0.16 2.59 3.05
2016 2.00 0.40 0.26 0.14 2.47 2.87
2017 2.00 0.40 0.26 0.14 2.80 3.20
Note: The process of estimation of consumption in terms of finished steel is already defined for the
year 2017 in Tables 3-10 and 3-11 above. The same process is repeated and extended to the d ata
on own production, ship breaking and import arrivals in order to study the long term trend of
steel consumption in the country.
Re-usable scrap generation @20% of LDT.
The consumption of flat steel products maintained a steady

growth of around 12 percent CAGR both in the medium term since 2008
and near term since 2014.
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BASHUNDHARA GROUP
The current import basket of 2.8 million tons is dominated by

coated steel at 1.3 million tons or 46 percent and HR Coils/Sheets at
1.2 million tons or 43 percent. Plates at 190,000 tons and CR Coils/Sheets at
115,000 tons account for the balance at 7 percent and 4 percent shares
respectively.
The trend of consumption of total finished steel is computed

by integrating the independent assessment of the long steel and flat steel
consumption trends defined in the previous paragraphs (Tables 3 -14 and
3-15). This is furnished in Table 3-16 below.
TABLE 3-16 - CONSUMPTION TREND – TOTAL FININSHED STEEL

(Million Tons)
Domestic Consumption
Year
Long Steel Flat Steel Total
2000 0.37 0.71 1.08
2001 0.80 0.73 1.53
2002 0.72 0.78 1.50
2003 0.51 1.01 1.52
2004 0.66 0.95 1.61
2005 0.67 1.09 1.76
2006 0.84 1.13 1.97
2007 0.55 1.11 1.66
2008 1.04 1.17 2.21
2009 1.66 1.60 3.26
2010 1.27 1.36 2.63
2011 1.95 1.86 3.81
2012 2.50 1.74 4.24
2013 2.38 1.68 4.06
2014 2.44 2.27 4.71
2015 3.83 3.05 6.88
2016 4.60 2.87 7.47
2017 5.10 3.20 8.30
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BASHUNDHARA GROUP
The above consumption series exhibits a couple of distinct

phases of developments with varying degrees of growth. These are shown
graphically in Fig. 3-15 below.
FIG. 3-15 – FINISHED STEEL CONSUMPTION TREND – LONG AND

FLAT
The changing pattern of the relative shares of long and flat steel
products is furnished graphically in the following diagram (Fig 3-
16).
FIG. 3-16 - CONSUMPTION TREND – LONG AND FLAT STEEL SHARES
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BASHUNDHARA GROUP
It may be seen from above that lack of sufficient infrastructure

related construction activities, usually witnessed and sponsored by the
governments of developing nations were conspicuously low, which resulted
in relatively low share of long products as compared
Long Products
reprocessing capabilities established well ahead of the commencement of

primary steel making facilities. There are about four hundred such
companies, the majority of which are engaged in re-rolling billets into bars,
rods and sections to meet the growing demand of constructional steel in the
market. Besides there is a sizable amount of scrap re -rollers who are engaged
in rolling salvaged scarp from ship breaking activity. There are others who
are involved in galvanizing and corrugation of cold rolled steel coils and
sheets to meet the demand of various local industries including the roofing
of houses and buildings pre -dominantly in the rural sector.
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BASHUNDHARA GROUP
In so far as finished long steel is concerned, the country has a

current capacity to produce 5.7 million tons per annum of bars, rods and
sections in the form of angles, channels and joists (Table 3 -17). At
TABLE 3-17 - BANGLADESH – LONG STEEL PRODUERS (RE-ROLLERS)
Current Expected
Producers
Capacity - 2018 Capacity - 2020
AKS 12,75,000 12,75,000
BSRM 11,50,000 11,50,000
KSRM 4,00,000 4,00,000
Mohsteel Ltd 5,00,000 5,00,000
Anwar Ispat Ltd 3,60,000 3,60,000
Ratanpur Steels Re-rolling Mills
1,87,200 1,87,200
Ltd
Baizid Steel Industries Ltd 1,80,000 1,80,000
Bandar Steel Ltd 1,20,000 1,20,000
GPH Ispat Ltd 1,20,000 7,60,000
Others (Including Scrap Re-rollers) 1,405,000 1,405,000
Total Secondary Producers 5,697,200 6,337,200
The producer-wise capacity figures along with the expansion projects

already underway are shown graphically in Fig 3-17 on the next page.
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BASHUNDHARA GROUP
FIG. 3-17 - SECONDARY (LONG) STEEL PRODUCERS - CAPACITY
As the focus of this market study is on flat steel. The

subsequent chapters will discuss at length the various characteristic
feature of the flat steel market of Bangladesh including its future demand
and export potential to neighboring countries.
3.4 FLAT STEEL

Till today Bangladesh has no linkage of its requirements of flat
steel with the crude or liquid steel manufactured in the country. Accordingly,
the country imports most of its requirement of flat steel in the form of hot rolled
coils/sheets, cold rolled coils/sheets, coated steel sheets/coils (Zn, AL-ZN,
polymer etc.) barring the re-usable scrap in the form plates and sheets
generated from the ship breaking activity.
However, Bangladesh has a few cold rolling mills which

convert a share of imported hot rolled coils in to thinner gauge cold rolled
coils and sheets. Bangladesh has also a number of steel processing units
engaged in converting plain cold rolled coils into galvanized coils and
sheets and galvanized sheets into corrugated roofing
3-39
BASHUNDHARA GROUP
sheets. Hence the absolute magnitudes of imported flat products do not

necessary reflect their actual levels of demand in the country. At best the import
figures, excepting plates for which Bangladesh has no
scenario will not invite any significant error or aberration. Rather it is

expected to fortify the findings and predictions of Bangladesh’s future
scenario of flat steel products.
Thus, the process of determination of actual or final demand

of flat steel products, excepting steel plates, entails following two steps.
i) Apparent Demand: At this stage, the volume imports of

flat steel products are assessed by studying the current
sourcing patterns.
ii) Final Demand: At this stage, the apparent demand is

normalized by discounting the volume imports of hot
rolled and cold rolled products with their estimated
conversion rates.
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BASHUNDHARA GROUP
For steel plates, however, the trend of imports reflects the true or
actual demand potential for the domestic market of Bangladesh.
3.4.1 Apparent Demand

Trade Analysis: Bangladesh currently imports 2.8 million
tons of flat steel comprising of plates, hot and cold rolled products including
coated steel. The broad composition of Bangladesh’s current (2017)
import basket of flat steel products is furnished in Table 3 -18 below.
TABLE 3-18 - FLAT ROLLED STEEL – IMPORT TREND

(‘000 Tons)
Current
Flat Steel Product % Share
Import
Plates 190 6.9
Plain Coils 1,155 41.7

Hot Rolled
Plain Sheets 12 0.4
Patterns 13 0.4
Total Hot Rolled 1,370 49.4
Plain Coils 85 3.1
Cold Rolled Plain Sheet 25 0.9

Coated
1,290 46.6
Products
Total Col Rolled Steel 1,400 50.6
Total Flat Steel 2,770 100
Source: ITC Trade Map WTO/UNCTAD
The flat products’ import basket is almost equally shared by

hot and cold rolled products.
Hot rolled plain coils having extensive applications in the

domestic industries dominate with 84 percent of the total hot rolled imports,
followed by plates at 14 percent. Plates too have applications
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BASHUNDHARA GROUP
spread over industries ranging from heavy industries including shipbuilding,

to construction of dams, barrages, bridges etc. Plain sheets and patterned
products with nominal presence account for the balance 2 percent.
Coated steel comprising of tinned, galvanized, painted, varnished

and plastic coated cold rolled steel lead the pack of cold rolled steel with 92 percent
share followed plain coils at 6 percent. The share of plain cold rolled sheet is 2
percent.
The current product-wise import scenario of flat steel products

is furnished in the following diagram (Fig. 3-18).
FIG. 3-18 - IMPORT TREND – FLAT ROLLED STEEL
Further inroads into the import trend of flat steel by

Bangladesh in terms of thickness and width-wise analysis is furnished in
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BASHUNDHARA GROUP
TABLE 3-19 - FLAT ROLLED STEEL IMPORT – SIZE ANALYSIS

(‘000 Tons)
Width
Product Thickness
>600mm <=600mm
>10mm 55 x
Plates –Plate Mill
>4.75mm - <10mm 52 x
>10mm 20 x
Plates – HS Mill
>4.75mm - <10mm 63 x
>10mm 75 x
Total Plates >4.75mm - <10mm 115 x
Total 190 x
HR Coils <3mm - <4.75mm 68 x
(Excluding Plate
Gauges) <3mm 1,087 x
Total HR Coils 1,155 x
>3mm - <4.75mm 7 x
HR Sheets
<3mm 5 x
Total HR Sheets 12 x
Patterned Coils 13 x
>3mm Neg x
CR Coils >1mm - <3mm 18 x
>0.5mm - <1mm 45 x
<0.5mm 22 x
Total CR Coils 85 x
CR Sheets >3mm 2 x
>1mm - <3mm 11 x
>0.5mm - <1mm 12 x
<0.5mm Neg x
Total CR Sheets 25 x
CR Strips (High Carbon)* x 5
‘*’ Included in CR Coils
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BASHUNDHARA GROUP
Heavy plates (>10mm thick) at 75,000 tons share about 40

percent of total import of 190,000 tons. Light Plates including Hot Strip Mill
Plates (HSM) imported in coil form at 115,000 tons accounts for the balance
60 percent.
For HR coils, thicknesses in the range below 3mm dominate

accounting for 94 percent of the import and consequent consumption in the
domestic market.
For CR coils, the thickness band of 0.5mm to 1.0mm is the

most popular sharing more than 50 percent of the import and subsequent
consumption.
Coated products have a wide spread applications in the

Bangladesh’s economy. This is analyzed in the following paragraphs.
Bangladesh currently imports 1,290,000 tons of coated steel

products comprising of tin plates, galvanized steel, aluminium and
aluminium-zinc coated steel, painted, varnished and plastic coated steel. The
trend of coated steel sheets and coils is increasing at a brisk pace of more
than 18 percent CGAR since 2014.
Painted, varnished and plastic coated steel dominate the import

basket accounting for more than half (56 percent) of the import volume,
followed by aluminium and aluminium-zinc coated steel at 18 percent,
galvanized steel accounting for 16 percent, and tin plates at 10 percent. The
import of other types of coated steel like chromium, lead etc are sporadic and
negligible. The following Table 3-20 furnishes the current volume of
imports.
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BASHUNDHARA GROUP
TABLE 3-20 - FLAT ROLLED COATED STEEL IMPORT – PRODUCTS

(‘000 Tons)
Coated Products Current Import % Share

Tin Plates 130 10
Galvanised Steel (Zinc Coated) 206 16
Al, Al-Zn Coated Steel 232 18
Paint and Varnish Coated Steel 722 56
Total 1,290 100
The galvanized products predominantly include plain corrugated

sheets/coils. The import of corrugated roofing steel is negligible,
implying thereby the existence of a well developed steel corrugation industry,
which converts plain galvanized sheets into corrugated roofing sheets, the
demand of which is high in the rural areas of the country.
Both forms of zinc coated steel are in demand – electrolytic (60

percent) and hot dipped (40 percent).
Both Al and Al-Zn coated steel have almost equal shares in the
import of such coated steel in the country.
Bulk of the sheet import is of regular thickness and width above

600mm. Only 4 percent or about 51,600 tons are imported in narrower strips of
width less than or equal to 600mm.
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The current trend is shown diagrammatically in Fig. 3-19

below.
FIG. 3-19 - COATED STEEL – PRODUCT-WISE IMPORT
3.4.2 Actual Demand

Conversion Adjustments: Bangladesh has a number of
small to medium sized steel processing units comprising of cold rolling and
galvanising lines, which are in operation. AKS group leads the industry with
a combined capacity of 700,000 tons per year cold rolling mill complex
including galvanising and galvalume coating facilities. The group has strip
mill to produce thinner gauge steel strips as well.
Considering the existence of such units the following

conversion factors are applied on the volume imports in order to assess the
current actual demand of these products in the country.
i) Hot Rolled to Cold Rolled – 50 percent

ii) Cold Rolled to Coated Steel – 40 percent
iii) Coated Steel to galvanised steel – 95 percent
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The corresponding conversion rates for Indian market in India

are 60 percent and 55 percent respectively. The share of Zn coated galvanised
steel in India is 90 percent of the coated steel.
The above conversion rates were applied on the imported

quantities, to determine the realistic or final demand levels of current product-
wise demand of flat steel. This is presented in Table 3-21 below.
TABLE 3-21 - FLAT ROLLED STEEL – FINAL DEMAND

(‘000 Tons)
Flat Conversion Adjustments Final

Product Import
Steel (%) Demand
Plates 190 - - 190
Plain
1,155 50 (-)575 580
Hot Coils
Rolled Plain
12 - - 12
Sheets
Patterns 13 - - 13
Total Hot Rolled 1,370 (-)575 795

Plain (+)575
85 40 396
Coils (-)264
Cold Plain
25 - - 25
Rolled Sheet
Coated
1,290 - (+)264 1,555
Products
Total Col Rolled
1,400 - (+)575 1,975
Steel
Total Flat Steel 2,770 2,770
As expected, the real or final demand of cold rolled products is

significantly higher than their corresponding levels of imports. The volume
of import of hot rolled coil can be termed as apparent demand inclusive of the
demand of the cold re-rollers. The quantity of hot rolled coils, net of
conversion, is the final demand of the industry.
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A comparative analysis of the apparent and final demand of the

flat steel products, as presented in Tables 3-18 and 3-21, is presented
graphically in the following diagram (Fig. 3-20).
FIG. 3-20 - FLAT STEEL – CURRENT SCENARIO
For reasons discussed above, the current import levels of coated

steel as furnished in Table 3-20 earlier do not necessarily reflect the true or
final demand of the products in the domestic market. This is because as much
as 40 percent of the cold rolled steel get converted as galvanised (95 percent)
and galvalume (5 percent) steel, which are finally consumed by the industry
and the house building (roofing steel) sector of the economy. The final
demand scenario of the coated steel as it is obtaining today is furnished in
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TABLE 3-22 - COATED STEEL – FINAL DEMAND

(‘000 Tons)
Apparent Converted Final

Coated Products Demand
(Current Import)
CR Coils Demand
Tin Plates 130 - 130
Galvanised Steel (Zinc Coated) 206 250 456
Al, Al-Zn Coated Steel 232 14 246
Paint and Varnish Coated Steel 722 - 722
Total 1,290 264 1,554
Expectedly, the demand of galvanised steel, plain and

corrugated, used extensively in industries like furniture, trunks, buckets,
pipes, ducts including roofing of houses has the maxi mum share of
demand. A visual presentation of the apparent (imports) and final demand
is furnished in the following diagram (Fig. 3-21).
FIG. 3-21 - COATED STEEL – CURRENT SCENARIO
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3.5 DEMAND FORECAST

3.5.1 Market Segments
Flat rolled products comprising of hot rolled coils/sheets,
cold rolled coils/sheets, galvanised and coated coils/sheets including
corrugated or roofing sheets are pre-dominantly industrial products
consumed largely by the manufacturing sector as opposed to long products
demanded primarily by the construction and infrastructure sector of a
nation. Even within the manufacturing sector, flat steel products are
consumed by a wide array of industries with diverse intensities of steel
content.
Among the many industrial sectors, the industries which consume

flat steel products as their primary raw materials and therefore exert maximum
influence on the consumption and demand of steel are indicated in Table 3-23.
TABLE 3-23 - FLAT ROLLED STEEL – MARKET SEGMENTS
Sector Industry Flat Steel Products

Industrial Plates, HR Coils/Sheets
Construction Dams and Barrages Plates
Infrastructure and
Fabrication Power and Energy Plates and HR Coils/Sheets
House Building GC Sheets, Coated Sheets
Passenger Vehicles CR Coils/Sheets
Automotive Commercial Vehicles HR Sheets
Transportation Bus Body GP Coils/Sheet

Railways Wagons and Coaches Plates, HR Coils/Sheets
Ships, Steamers,
Ship Building Plates, HR Coils/Sheets
Boats
Tube Making HR Coils/Strips
White Goods CR Coils/Sheets
Air-conditioning GP Coils/Sheets
Furniture, Trunks, HR Coils/Sheets, Coated
Manufacturing Industry Buckets Sheets
Silos, Tanks and Plates, HR Coils/Sheets and
Containers CR Coils/Sheets
Plates, HR Coils/Sheets, CR
Engineering including
Coils/Sheets, GP
Fabrication
Coils/Sheets, Coated sheets
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3.5.2 Demand Drivers

Automotive: The automotive industry till recently was in a
fledgling state. There was no unit, excepting the state-owned Pragoti
Industries, which had initially showed enough promise only to give up the
attempt subsequently. Now only motor cycles are assembled and produced
locally. Presently all passenger and commercial vehicles are imported from
abroad- mainly from Japan.
However, given the rapid progress of Bangladesh’s economy,

which is increasing at a rapid pace of 7 percent and above per annum, the
middle income group is fast emerging as a potent force to reckon with.
This burgeoning middle class with their increasing kitty of disposable
income is all set to dictate and spur the growth of the consumer products’
industry including automobiles. Keeping such developments in view,
the business community of Bangladesh has adopted a number pro-active
measure forcing the country to enter into the league of global automotive
manufacturers. Some of these steps when completed will lead the domestic
demand of flat steel products in a big way.
i) PHP Automobiles, a member of PHP group, through its

newly established factory at Chittagong has started
assembling and selling cars of Proton brand of Malaysia.
ii) A local enterprise proposes to set up a large truck

assembling factory at Bhaluka in Mymensingh district. This
has the potential to provide a major boost to the country's
fledgling automobile industry.
iii) Runner assembly plant has entered into a collaborative

venture with India's VE Commercial Vehicles Ltd
(VECV). It will be a completely knocked down (CKD)
facility for production of about 500 Eicher brand trucks a
year.
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iv) Bangladesh market has attracted the attention of a

number of Indian automotive companies which are not
only exporting to the country, but have also evinced
interest in setting up assembly or manufacturing plants
here. Ashok Leyland, in partnership with IFAD Group,
opened a truck assembly plant in Dhamrai in Dhaka
district of Bangladesh.
It is expected that with demand picking up in near future because

of a ‘booming’ economy, these joint ventures will soon get converted into
full fledged manufacturing activities creating substantial demand of
automotive grade steel in the long run.
Some of the major units in the country’s automobile sector

are furnished below:
a) Pragoti Industries Limited is a Bangladeshi car
assembling and car parts manufacturing company
headquartered in Chittagong with a manufacturing plant
in Agrabad.
b) Runner Automobiles Limited (RAL), the flagship

company of Runner Group is manufacturing motorcycles.
The company has invested a large amount of capital for
advanced production technology and equipment.
c) Walton Hi-Tech Industries Ltd. is the first motorcycle

manufacturer of Bangladesh with different models of
80 cc to 150 cc motorcycle. The company exports products
in different countries of the world as well.
d) Aftab Automobiles Ltd is an assembler-cum-

progressive manufacturer of Toyota and Hino vehicles
in the private sector of Bangladesh. The Company is
mainly a vehicle assembler and body fabricator but has
been successfully assembling Toyota and Hino vehicles
for Bangladesh market since 1982.
e) Atlas Bangladesh Ltd produces different models of

world renowned Honda and Hero Honda Brands, 3-
Wheeler Motorized Rickshaw (Mishuk).
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Railways: Bangladesh Railway (BR), the state-run transportation

agency of the country, has 2835 Km rail line with 440 stations, 286 locomotives,
1503 coaches and 10226 wagons.
BR connected almost all important places of 44 civil districts and

plays an important role in the national economy. It operates 261 passenger
trains (Intercity 68, Mail and Express 66, Local 127) and 55 goods trains
including container trains daily on an average. Besides, it operates the largest
Inland Container Depot with a capacity of 90,000 TEUs (Twenty-foot
Equivalent Unit).
Rehabilitation of existing railway lines, modernization of

signaling systems and acquisition of new rolling stocks to improve
performance and to cop up with the upcoming work of linking the network
with the Trans Asian Railway are the important challenges in front of BR.
Apart from these, reducing operational bottlenecks by double tracking all
major railway corridors and harmonization of railway tracks by phases,
institutional reform, pragmatic role in easing traffic congestion by improving
commuter train service in Dhaka and Chittagong cities, proper use of land
and other assets, introducing more Public Private Partnership (PPP) in
railway sub-sector are the other important challenges in front of Bangladesh
Railways.
Presently, the BR does not have any production and

manufacturing facility to produce wagons, coaches and locomotives in the
country. The entire demand of rolling stocks is imported from abroad.
The country’s workshops are engaged in repairs and maintenance
works of the exiting rolling stocks only, which have a limited demand of
flat steel products.
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Currently, the country has two railway workshops - one at

Pahartoli in Chittagong and the other at Saidpur in Nilphamari - which were
constructed way back in the British era. The government is establishing
Bangladesh's third railway workshop in Rajbari to provide backward-linkage
service to cross-border train communications through Padma Bridge.
Passenger coaches and wagons of trains plying through the southwestern
region would be repaired, among other engineering works, at the new
workshop.
However, the situation is likely to undergo a major shift in the

years-to-come. Bangladesh government has drawn-up a revised master plan
of Tk 5.10 trillion to develop country’s railway system in five phases until
2045 - each with five-year tenure. The plan activities include projects for
increasing efficiency of the rail track, its gradual upgrade and conversion
from metre gauge to broad gauge, improving carriage and locomotive
maintenance capacity, developing institutional capacity, up scaling
significantly freight operational capacity and exploring prospects for
introducing electric trains or high -speed trains on some priority routes
during the period.
Bangladesh Railway has planned to set up a new unit for

manufacturing passenger coaches and freight wagons at Saidpur Railway
Workshop. The workshop will have capacity to produce 60 passenger
coaches and freight wagons every year. The workshop has some 112 acre
unused land at its premises while its excising 26 shops are now capable to
produce some spare parts of rail coaches only.
Around 1,000 coaches and wagons are currently being repaired

at the workshop in a year. However, the demand for rail coaches has been
increasing and the BR is now heavily depending on imports from India and
Indonesia to carry out the services. A total of
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440 freight wagons were purchased from India over the last three years,
whereas 150 passenger coaches were brought from Indonesia over the same
period. The project for the new manufacturing unit will breathe new life in the
workshop’s operation. The funds for the proposed project
jute, tea and readymade garments, in the last 10 years it has attracted attention of
many foreign buyers in shipbuilding. Two million people are related directly or
indirectly with the shipbuilding industry.
Ship building is a growing industry in Bangladesh with great

potentials. Bangladesh has a long history in shipbuilding dating back to the
early modern era. However, shipbuilding has become a major promising
industry in recent years when the locally made ships began to be exported.
Recently shipbuilding has become an important economic and industrial
sector in Bangladesh.
The potentials of shipbuilding in Bangladesh have made the

country to be compared with countries like China, Japan and South Korea.
Japan introduced shipbuilding in the 1950s and 1960s to rebuild
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its industrial structure. In the 1970s South Korea initiated shipbuilding

through development as strategic industry. China is now in the process of
repeating these models. Similarly South Asian countries like
20 percent are in Chittagong and 10 percent are in Khulna and Barisal. These
yards are mainly engaged in building and repairing of inland and coastal
vessels, up to 3,500 DWT (Dead Weight Tonnage) to fulfill the demand of
local market.
Most shipyards are operating under individual management

with nominal supervision of government. All inland and coastal ships are
built by local shipyards, and the number of vessels built per year counts an
average of 250. They employ a huge number of skilled and unskilled
labours. Most of the private shipyards use plate, engine, component and
machinery of old merchant ships which are collected from ship-breaking
industry.
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There are 11 local shipyards of international standard

capable of making ships up to 10,000 DWT. These are:
i) Ananda Shipyard and Slipways Limited, Dhaka
ii)
iv)
v)
vi)
xi) Bashundhara Steel and Engineering Ltd, Narayangan j
Presently the industry is working on a number of foreign

projects. The leading shipyards are expecting to grab more foreign orders
in the coming days. It may be mentioned here that Japan, South Korea and
China are building very big, specialized and hi-tech ships, and they are not
interested in constructing smaller vessels.
MSME segments: Apart from the above three major segments

of the market driving the demand of flat steel products in Bangladesh, other
organized manufacturing sectors like white goods, air - conditioning, pipes and
tubes, house-hold goods like furniture, buckets, trunks etc, according to
industry sources, are also doing well. All these industries, which are essentially
in the small to medium industry
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segment are expected to generate extensive additional demand of flat steels

supplementing the demand of the larger industrial and infrastructure segments
like the railways, shipbuilding, automotives etc.
3.5.3 Demand Forecast

Keeping the objective of this market study in view, this section
presents an estimate of the future demand of flat rolled products in the
domestic market of Bangladesh along with its export potential to
neighbouring nations.
Bangladesh’s current flat steel scenario of apparent and final

demand derived from the import data has been discussed earlier (Tables 3-18
and 3-21). However, in order to estimate the future projection of demand it is
essential to derive a likely growth rate that is both achievable and
sustainable in the long run.
A long term projection beyond a decade and more, as is the case

of the present study, it is preferable to explore the existence of any explicit or
implicit long term trend including periodic fluctuations, if any, latent in the
past data, which can be gainfully adopted with adequate degree of reliability
and certainty. For this purpose, the historical growth trend of consumption
of flat steel in Bnagladesh has been adopted as the basis of this forecasting
exercise.
An analysis of the consumption trend since 2000, reveals two

distinct phases of positive growth. A 9-year period of sustained and
significant growth starting from the world economic meltdown in 2008 to till
date 2017, preceded by a period of sluggish growth from 2000 to 2008. The
more recent period since 2013 is however, witnessing an exponential growth
in the consumption of flat products. This is depicted graphically in the
following diagram (Fig. 3-22).
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FIG. 3-22 - FLAT STEEL – CONSUMPTION TREND
A model based on a realistic growth path compounded annually becomes

relevant and significant.
The analysis of past trend reveals three highly relevant growth

rates – a long term growth of 9.3 percent CAGR, a medium term growth
rate of 12.6 percent since 2008 and a more recent one of 19 percent CAGR
since 2013. It needs to be emphasized that growth rates in excess of 10
percent compounded annually are normally not sustained in the long run.
None of the above three growth trends can be adopted for long term
demand forecasting purposes. The long term growth rate of
9.3 percent which the country achieve and sustain over a period nearing
two decades is a reflection of a very low base year consumption level.
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In a booming market, shorter the period higher is the rate of

growth. For a longer time frame, especially when the year-to-year data are
galloping exponentially, it would be imprudent to adopt any higher or
adventurous rate of growth.
For steel and many industries, the long term growth treads in
the band of 6-8 percent compounded annually. Even within this band, the
industry may grow @8 percent or more, especially in the short run, when
the economic scenario is highly favourable. However, with continual
increase in the base values on yearly basis, the annual growth rate is most
likely to taper off and settle for 6 percent or less. Hence considering all
aspects, especially the favourable pro -industry wind sweeping the nation,
a growth rate of 7 percent CAGR has been adopted to predict the future
demand of flat steel products in the country.
The period of increasing domestic consumption of flat steel

matches with similar growth of the national economy. The GDP of
Bangladesh too exhibited a similar sustained growth of 6.45 percent CAGR
for the period 2007-08 to 2017-18. As already mentioned, the IMF has
forecast a 7.0 percent compounded annual growth of the Bangladesh
economy till 2023 signaling all round growth in all sectors inc luding
manufacturing. The manufacturing sector is presently clocking growth in
excess of 10 percent per annum.
The future demand estimates of flat steel for the domestic market
of Bangladesh are furnished in tabular form in Table 3 -24 on the next page.
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TABLE 3-24 - FLAT ROLLED STEEL – DEMAND FORECAST

(Million Tons)
Year Forecast
2018 3.42
2019 3.66
2020 3.92
2021 4.19
2022 4.49
2023 4.80
2024 5.14
2025 5.60
2026 5.88
2027 6.29
2028 6.74
2029 7.21
2030 7.71
The above forecast of projected demand of flat steel for

Bangladesh’s domestic market is shown graphically in the following
diagram (Fig. 3-23).
FIG. 3-23 - FUTURE DEMAND OF FLAT ROLLED STEEL
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3.5.4 Product-wise Demand

The product-wise break-down of current final demand of flat
rolled steel by Bangladesh is furnished in Table 3-21. Accordingly, the
overall demand of flat rolled steel presented in Table 3-24 above is split- up
in line with the product level pattern of current final demand so as to arrive at
the likely demand of various flat steel products like plates, hot, cold and
coated steels. The projected demand of flat steel products for the terminal
years 2020, 2025 and 2030 are furnishe d in Table 3-25.
TABLE 3-25 - FLAT ROLLED STEEL – PRODUCT-WISE DEMAND

(‘000 Tons)
% Demand
Flat Steel Product
Share 2020 2025 2030
Plates 6.9 270 380 530
Plain Coils 20.9 820 1,150 1,610

Hot Rolled
Plain Sheets 0.4 15 20 30
Patterns 0.5 20 30 40
Total Hot Rolled 28.7 1,125 1,580 2,210
Plain Coils 14.3 560 785 1,100
Cold Rolled Plain Sheet 0.9 35 50 70

Coated
56.1 2,200 3,085 4,330
Products
Total Col Rolled Steel 71.3 2,795 3,920 5,500
Total Flat Steel 100 3,920 5,500 7,710
Further break-down of coated sheets’ demand based on the

current patterns of final consumption (Table 3-22) is furnished in Table 3-26
on the next page.
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TABLE 3-26 - COATED STEEL – PRODUCT-WISE DEMAND

(‘000 Tons)
Coated Demand
% Share
Products 2020 2025 2030
Tin Plates 8.4 185 260 360

Galvanised
Steel 29.4 645 905 1,275
(Zinc Coated)
Al, Al-Zn
15.8 350 490 685
Coated Steel
Paint and
Varnish Coated 46.4 1,020 1,430 2010
Steel
Total 100 2,200 3,085 4,330
is
FIG. 3-24 - DEMAND FORECAST – FLAST PRODUCTS
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Based on the import trend, the likely size-wise distribution of

demand of different flat steel products are discussed below.
Plates: The future demand of plates will continue to be

generated principally by the ship building industry and industrial construction
sector of Bangladesh. With railways gearing -up to manufacture rolling
stocks, namely, wagons by renovating their workshops, the demand of plates
and hot rolled sheets and coils will get a boost. The demand of plates from
the energy and power sector will, however, continue to be low as the country
will continue to depend on external market for the import of power plant
machinery and equipment like alternators, turbines and boilers. With
nominal share of hydel power in the energy map, the demand of heavy plates
required for fabrication of penstocks and pressure vessels will not be there at
least in the foreseeable future.
The size-wise distribution of demand of plates for the domestic

market of Bangladesh is furnished in Table 3-27 below.
TABLE 3-27 - STEEL PLATES – SIZE-WISE DEMAND

(‘000 Tons)
% Demand
Product Thickness
Share 2020 2025 2030
Plates – >10mm 29 78 110 153
PM >4.75 -
27 74 104 145
<10mm
Plates – >10mm 11 28 39 54
HSM >4.75mm -
33 90 127 178
<10mm
>10mm 39 106 149 207
Total
Plates >4.75mm -
61 164 231 323
<10mm
Total 100 270 380 530
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HR Coils: Industrial machinery - mechanical and electrical –

tube making, industrial construction, fabrication, ship building, and furniture
making etc. the leaders of the growing manufacturing sector will continue
to spur the future demand of hot rolled coils, including sheets for the
country. The decision by the Bangladesh Railways to undertake
manufacturing of railway wagons by renovating, expanding and upgrading
the network of its workshops will add to the demand of hot rolled products
as well.
The likely size-wise distribution of hot rolled coils and sheets,

as obtained from the current importing trend is furnished in Table 3-28.
TABLE 3-28 - HR COILS/SHEETS – SIZE-WISE DEMAND

(‘000 Tons)
Demand
%
Product Thickness Share 2020 2025 2030
HR Coils <3mm -
6 50 70 95
(Excluding <4.75mm
Plate
Gauges) <3mm 94 770 1,080 1,515
Total HR Coils 100 820 1,150 1,610

>3mm -
HR 60 9 12 18
<4.75mm
Sheets
<3mm 40 6 8 12
Total HR Sheets 100 15 20 30
Patterned Coils Total 20 30 40
The demand of chequered plates will continue to be spurred by

the expansion of the industrial construction and transportation sector (body
building and flooring).
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3.6 EXPORT POTENTIAL

Geographically, Bangladesh is located in an advantage position
in so far its proximity to South-East Asian nations in the East and those of
the South Asian nations in the West. Moreove r, its extended maritime
frontier offers an excellent opportunity to export its merchandise to its near
and not-so-near neighbours with distinct competitive advantage.
The export opportunity of a commodity like steel for a nation is

best judged on the trend or propensity of the destination nations to import.
Accordingly, Bangladesh’s export potential is measured in terms the
importing trend of its neighbours grouped under SAARC and ASEAN
constellations of nations. The following Tables 3-29 and 3-30 furnish the
current importing trend of flat steel products by SARRC and ASEAN nations.
The current trend reflects the average of last three years’ imports as
obtained from the international trade database of WTO/UNCTAD (ITC
Trademap).
TABLE 3-29 - EXPORT POTENTIAL – SAARC IMPORT TREND

(‘000 Tons)
HR CR Al, Al-
Country Tin Galv Coated
Coils/ Coils/ Zn Total
Plates Plates Prod Prod
Sheets Sheets Prod
India 630 2,470 880 215 143 90 480 4,908
Sri
50 34 25 17 23 38 43 230
Lanka
Afghanis
12 13 26 17 - 2 70
tan
Nepal 25 327 126 2 - 4 484
Pakistan 20 684 280 47 60 16 115 1,222
Bhutan - 1 1 90 480 572
Maldives 2 2
Total 737 3529 1338 281 245 234 1,124 4,908
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The above import trend is depicted graphically in the

following two diagrams (Fig. 3-25 and Fig. 3-26).
FIG. 3-25 - SAARC – FLAT STEEL IMPORTING COUNTRIES
FIG. 3-26 - SAARC – FLAT STEEL IMPORTING PRODUCTS
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Opportunity exists for Bangladesh to export its flat steel products

to India, Nepal, Pakistan and Sri Lanka.
TABLE 3-30 - EXPORT POTENTIAL – ASEAN IMPORT TREND

(‘000 Tons)
HR CR Al, Al-
Tin Galv Coated
Country Coils/ Coils/ Zn Total
Plates Plates Prod Prod
Sheets Sheets Prod
Thailand 203 2,676 877 277 111 158 275 4,577
Malaysia 224 1,515 872 90 60 111 52 2,924
Singapore 305 167 135 44 63 10 26 750

Indonesia 153 1,243 816 132 113 95 494 3,046
Philippines 47 221 249 113 43 73 193 939

Myanmar 6 91 48 59 22 8 64 298
Brunei 2 1 1 Neg Neg Neg 12 16
Vietnam 314 2,638 298 42 71 9 314 3,686
Cambodia 2 1 38 20 2 8 2 73
Laos Neg 1 6 1 1 Neg Neg 9
Total 1,256 8,554 3,340 778 486 472 1,432 16,318
The above import trend is depicted graphically in the

following two diagrams (Fig. 3-27 and Fig. 3-28).
FIG. 3-27 - ASEAN – FLAT STEEL IMORTING COUNTRIES
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FIG. 3-28 - ASEAN– FLAT STEEL IMORTING PRODUCTS
Opportunity exists for Bangladesh to export its flat steel

products to ASEAN countries well.
However, the export markets to these countries are dominated by

China, Japan and South Korea followed by India to a limited extent. Penetration
to these markets by Bangladesh will require highly efficient product quality,
competitive pricing and appropriate marketing strategies. Government level
agreements between Bangladesh and the targeted importing nations will help
to a great extent.
3.7 OBSERVATIONS
Bangladesh economy is on a path of rapid ascendancy. According
to international financial institutions like World Bank and IMF the growing
trend is expected to be sustained.
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Moving away from the traditional agrarian character, the

economy is becoming increasingly industry oriented, led by the
manufacturing sector with double digit growth.
The rapid economic growth is raising the income level of its people
leading to increase in demand of commodities.
While the government is keen to upgrade the country’s

railway networks including its rolling stocks, the private sector is busy
developing the domestic automotive sector through international tie -ups.
All these developments, overseen by a strong and stable

government bode well for the future of any industry, especially that of flat
rolled steel, the demand of which is met entirely through imports.
The demand of steel in general and that flat rolled steel, like
the nation’s economy is on a path of ascendancy as well.
Time is ripe for the captains of the nation’s industry to

create suitable capacity to produce flat rolled steel in the country, not only
to exploit the growing demand but also to contribute towards the economic
welfare of the nation.
3.8 RECOMMENDATION
This study on the future growth and opportunities of hot rolled
steel in Bangladesh unequivocally recommends creation of suitable capacity,
which can function as a major supplier of the product feeding a number of
secondary cold rollers dotting the region of the country.
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Out of the proposed capacity of 2 million tons or more of hot

rolled coils a provision to the tune of 10-15% may be reserved for making
light gauge plates by de-coiling and shearing to meet the growing demand
of the ship building industry.
The balance quantity may be apportioned among the coating,

construction, LPG, automotive and other grades.
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4 - PROJECT CONCEPT
This chapter suggests the appropriate plant configuration

based on a review of available options for the selected process route and
suggests the technologies for the major production units.
4.1 PROJECT CONCEPT, PROCESS ROUTE AND PLANT

CAPACITY
Bashundhara Group (BG) has envisaged to produce 2 million

tons per year (mtpy) of Hot Rolled Coils to cater to the flat prod uct market
in Bangladesh. In this connection, BG has already been allotted land in
Mirsharai Economic Zone (MEZ) at Mirsarai upazila, Chittagong District. BG
now intends to install steelmaking, casting and rolling facilities to produce
HR coils which is presently being 100 percent imported. For the proposed
steel plant, the process route shall be with electric arc furnace (EAF) - ladle
furnace (LF)- thin slab casting and rolling (TSCR) technology for producing
HR coils. High fault level is required for operation of EAF of required
capacity which is likely to be achievable through 400 kV grid connectivity.
BG has assured availability of the required power at the plant boundary.
4.2 PRODUCT-MIX
The product-mix suggested for the project is given in Table 4-1
on the next page. It essentially includes those quality/grade clusters for which
the country is presently completely dependent on imports to meet its growing
demand.
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BASHUNDHARA GROUP
4 - Project Concept (cont’d)
TABLE 4-1 - PRODUCT-MIX
Quantity
Grades Share (%) (ton)
Lloyd grade for shipbuilding 12.5 250,000
LPG cylinder grade 8.0 160,000
Steel grade for corrugated steel 42.5 850,000
Construction grades 29.0 580,000
Automotive grades 8.0 160,000
Total 100 2,000,000
4.3 OPTION STUDY

4.3.1 Basic Considerations
The basic considerations that have gone into the selection of the
options for the proposed project are as follows:
i) The process route shall be EAF – LF –TSCR
ii) All facilities required for normal operation will have to
be accommodated within the allotted land to BG in
the economic zone.
iii) The steel plant shall be capable of producing 2.0 mtpy
of HR coils.
iv) The proposed steel plant will meet all relevant and
applicable environmental regulations, and will be safe
to operate.
v) Lowest possible capital investment.
4.3.2 Available Options

Following options for plant configuration have been
considered for review:
Option-1 : Production of 2.0 mtpy HRC coils in two phases.
Phase 1 – 1.0 mtpy and Phase 2 – Additional 1.0
mtpy.
Option-2 : Production of 2.0 Mtpy HRC coils in a single phase.
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BASHUNDHARA GROUP
The comparative of features of Option-1 and Option-2 are given

in Table 4-2.
TABLE 4-2 - COMPARATIVE FEATURES OF OPTION-1 AND OPTION-2
Feature Option-1 Option-2

Major Facilities for Phase-1 : 1 X 110 Ton EAF, 1 X 220 Ton EAF, 1 X
steelmaking 1 X 110 Ton LF 220 Ton LF
Additional for Phase-2 : 1 X

110 Ton EAF, 1 X 110 Ton
LF
Major Facilities for Phase-1 : 1 X Single strand 1 X Single strand TSCR.
casting and rolling TSCR
Additional for Phase-2 : One

additional strand. The mill
will be underutilized in
Phase I.
Available Favourable Will require
Infrastructure improvement/developme
nt of existing
infrastructure
Electric Power Lower fault level required. High fault level
Can be managed with required. 400KV grid
existing grid connectivity in connectivity required
Phase-1 stage. However, which is under
400KV grid connectivity implementation
required after Phase 2
Space requirement Higher Lower
for installation of
the facilities
Capital cost Higher Lower
Maintenance cost Higher Lower
Production cost Higher Lower
Project Risk Lower Higher
4.3.3 Evaluation of Options

Based on the objectives and the configuration, and extensive
scenario analysis three candidate charge-mix options have been considered
for evaluation for each option.
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BASHUNDHARA GROUP
Case A : Charge-mix: 100 percent hot DRI (HDRI). 2.5 mtpy

DR plant shall be installed. For Option-1, this shall
be the charge mix after Phase 2.
Case B : Charge-mix: 70 percent purchased Scrap and 30 percent

purchased HBI. No. DR plant shall be installed. For
Option-1, this shall be the charge mix after Phase 2.
Case C : Charge-mix: 50 percent HDRI and 50 percent purchased

scrap. A smaller capacity about 1.2 Mtpy DR plant
shall be installed. For Option-1, this shall be the
charge mix after Phase 2.
In all the cases, for Option-1, the charge mix for Phase-1 shall
be 70 percent purchased Scrap and 30 percent purchased HBI as investment
for DR plant is not being considered at 1.0 mtpy stage.
Option 1 : Two Phases of 1 mtpy each
CASE : 1A DR + EAF + TSCR CASE : 1B EAF + TSCR CA SE : 1C DR + EAF + TSCR
No DR Plant No DR plant No DR Plant

1 x 110 ton EAF 1 x 110 ton EAF 1 x 110 ton EAF
Phase 1 1 x 110 ton LF 1 x 110 ton LF
1 x 110 ton LF
1 x 1 strand TSCR 1 x 1 strand TSCR 1 x 1 strand TSCR
No DR plant
1 x 110 ton EAF
Phase 2 1 x 2.5 mtpy DR Plant 1 x 110 ton LF 1 x 1.2 mtpy DR Plant
1 x 110 ton EAF 2nd strand in TSCR 1 x 110 ton EAF
1 x 110 ton LF 1 x 110 ton LF
2nd strand in TSCR 2nd strand in TSCR
Option 2: 2.0 mtpy capacity plant in one go
CASE : 2A DR + EAF + TSCR CASE : 2B EAF + TSCR CASE : 2C DR + EAF + TSCR
1 x 2.5 mtpy DR Plant No DR Plant 1 1 x 1.2 mtpy DR Plant

1 x 220 ton EAF x 220 ton EAF 1 x 220 ton EAF
1 x 220 ton LF 1x 220 ton LF 1x 220 ton LF
1 x 1 strand TSCR 1 x 1 strand TSCR 1 x 1 strand TSCR
4.3.4 Analysis of Options

The financial summary for different options is given in the
following Table 4-3 on the next page.
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BASHUNDHARA GROUP
TABLE 4-3 - FINANCIAL SUMMARY OF THE OPTIONS
OPTION-1 OPTION-2
CASE -1A CASE -1B CASE -1C CASE -2A CASE -2B CASE -2C
Parameters (After Ph II) (After Ph II) (After Ph II)
Plant cost 1.00 0.58 0.85 0.97 0.54 0.82
Total capex 1.00 0.59 0.85 0.98 0.56 0.83

Manufacturing
1.00 1.16 1.07 1.00 1.15 1.06
expenses
Annual sales
1.00 0.97 0.97 1.00 0.97 0.97
realization
EBITDA 1.00 0.66 0.81 1.00 0.66 0.82
EBITDA, % 1.00 0.68 0.84 1.00 0.68 0.84
IRR, % 1.00 0.99 0.95 1.16 1.21 1.09
Note:
(1) Option-1A is the reference base. All parameters expressed as
indices with base value = 1.0
Observation from Table 4-3 are as follows:
a) In option 1A and 2A, requirement of DRI i.e.100% HDRI

in EAF charge mix is met totally from captive DR Plant.
Excess DRI is available for sale. Therefore the
manufacturing expenses is lowest and Annual sales
realization is highest among all the options. As a result
EBITDA is highest.
b) In option 1C and 2C, DR requirement i.e. 50 % of charge

mix is met totally from captive DR plant. No excess DRI
is available for sale. EBITDA is less than Case A but more
than Case B.
c) In option 1 B and 2 B, there is no captive DR plant

considered and the total charge requirement i.e. 70% scrap
and 30% HBI of the charge mix will be purchased. As a
result option 1B and 2 B has lowest EBITDA amongst the
options.
d) Capital investment has no effect on EBITDA but it has an

effect on IRR. As the Capital investment in Option
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BASHUNDHARA GROUP
1B and 2B is lowest (without captive DR Plant) the IRR

for Option 2 B is highest.
Option 2B has been selected and shall form the basis of the TEFR
considering the highest IRR and the fact that there is a limitation of initial
capital investment. However, to reduce market dependence and to increase
the EBITDA, the 2.5 mtpy DR plant can be considered to be installed in
the future.
4.4 CAPACITY OF STEEL MELT SHOP

In order to feed TSCR for a production of 2,000,000 tpy HRC, the
production of liquid steel shall be as follows:
Liquid steel .. 2,046,000 ton
4.5 SELECTION OF CHARGE MIX

The charge mix shall comprise of purchased scrap and
purchased HBI with a maximum of 30 percent HBI in charge. BG has assured
availability of the required quantity of scrap and HBI at the plant boundary.
4.6 SELECTION OF TECHNOLOGY FOR SMS

Selection of process technology is mainly governed by cost of
production , increased productivity, scale of operation envisaged, land area
available, impact on the surrounding environment, proveness of
commercially available processes with available raw materials, experience
of operating personnel and available infrastructure facilities. Considering all
these aspects, steel making process route utilizing 100 - 70 percent scrap
as charge mix has been selected. The conventional EAF was evaluated with
energy efficient furnaces. Although the initial CAPEX of installing a
conventional EAF will be less, considering the long term benefit due to lower
power consumption and the price of power which is reported to be
substantially high, it is suggested that for the proposed steelmaking facilities,
energy efficient furnaces with adoption of scrap pre-heating technologies for
higher productivity and less power
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BASHUNDHARA GROUP
consumption shall be the selected process route. The two major

prevalent scrap preheating technologies are:
i) Using processed scrap in shaft furnace with vertical
scrap preheating technology.
ii) Using processed scrap continuously charged through

horizontal scrap conveyor with horizontal scrap
preheating technology.
TABLE 4-4 – COMPARITIVE FEATURES OF CONVENTIONAL AND

SCRAP PREHEATING TECHNOLOGIES
EAF with Scrap

Feature Conventional EAF Preheating Technology
Productivity Lower Higher due to short cycle time

with preheated scrap
Electricity Higher Lower due to preheating of scrap
Consumption
Electrode Higher Lower
consumption
Scrap density and Highly flexible Flexible in horizontal preheating
grade systems and limited in vertical
preheating systems
Voltage fluctuation Fluctuation is more Fluctuation is less and have a
in power system grid significant effect on Reactive
Power Compensation system
Flicker limit Since fluctuation is Flicker is less due to continuous
more, associated charging of sized scrap compared to
light flicker in batch charging
power system need
to be limited
Emission from Higher Lower as off gas used as
furnace preheated media
Dust (working zone Higher Lower
and disposal)
Noise Higher Lower
Space requirement Lower More area is required for installation of
for installation of the the horizontal preheating systems.
furnace Vertical scrap
preheating technology calls for higher
building height.
Capital cost Lower 20% more than conventional EAF
Maintenance cost Lower Higher due to complexity of scrap
preheating system as compared to
conventional EAF.
Production cost Higher Lower
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BASHUNDHARA GROUP
Advantage of using scrap preheating technologies is the reduced

power consumption. In both the cases, the scrap is preheated by the EAF
exhaust gas before charging in the EAF. The average temperature of the
preheated scrap achieved, is in the range o f 400-600 0 C, which results in
equivalent decrease in power required for melting to the extent of 55-100
KWh/ton. Thus, the electrical power requirement typically calculates to
around or little lesser than 300 -340 KWh/ton. The power consumption of
vertical shaft furnace is little less than the horizontal type, due to higher
residence time in the fingers resulting in higher preheated temperature of
the scrap. Heat time becomes lower for lower power consumption and
productivity increases due to lesser tap-to-tap time.
Considering adoptability of these two scrap heating

technologies, the configuration of vertical scrap preheating technology
requires a high rise building in order to house the bucket elevator structure,
preheating shaft structure with scrap retaining system over EAF and the
shaft hood connected to the dedusting system. In this process, there is batch
charging of scrap through the fingers requiring high level of automation for
operation. The design of the furnace is complex with fixed roof design. The
process also offers less flexibility, is more maintenance prone and the number
of installations are also limited. The horizontal type uses scrap conveyor
for scrap charging. The scraps are charged continuously in EAF with
improved flat bath operation and reduced flicker. The horizontal type uses
conventional shell with less complexity and higher flexibility. Moreover, the
vertical shaft furnace due to its fixed roof design, will not be able to accept
more than 30 percent HBI as charge material. Thus when DR plant in
installed in the future, the shaft furnace shall have to be replaced. The EAF
of the horizontal preheating technology, being a conventional one, can be
retained with certain modification. Therefore, the horizontal type, which
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BASHUNDHARA GROUP
is based on scrap transporting in horizontal metallic conveyor with heating

facilities using the flue gas from EAF, shall form the basis of this Report.
4.7 SELECTION OF TECHNOLOGY FOR ROLLING MILL

Variations in mill configurations of different thin slab casting and
rolling technologies are discussed hereunder.
Mill configuration: There are broadly three types of hot strip

mill configurations of thin slab casting and rolling route available from the
technology/equipment suppliers. The same are outlined below:
i) Finishing mill train of six or seven stands (with tunnel

furnace),
ii) Two or three roughing stands and five or six finishing

mill stands (with tunnel furnace)
iii) Three roughing stands and five finishing mill stands
(without tunnel furnace)
For the purpose of this Report, rolling mill configuration with

two roughing stands and four finishing mill stands in a row (with tunnel
furnace) has been considered. However, the final mill configuration will be
decided during the actual execution stage based on the evaluation of the
advantages and disadvantages of each of the above mill configurations.
The process details of steelmaking, casting and rolling are described

in Chapter 5.
The production facilities will be adequately supported by

necessary auxiliary facilities such as raw materials handling and storage,
electric power receiving and distribution system, all utility systems and
yard pipework, raw water treatment and distribution
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BASHUNDHARA GROUP
system, stores for refractories, spares and consumables, shop office, laboratory
etc. Other major facilities will include a captive air separation plant and lime
plant.
4.8 PLANT CONFIGURATION

As per the analysis, the suggested plant configuration for the
proposed 2.0 mtpy steel plant is given below:
Facilities Configuration
EAF with scrap preheating 1 x 220 Ton/200 MVA
Ladle furnace 1 x 220 Ton/40 MVA
Thin slab casting and rolling 1 x Single strand
The 1x 220 ton vacuum degasser shall be installed in the future

to cater to certain grades of steel. Provision for the same has been kept in
the layout. Also, 1 x 2.5 mtpy DR plant will be installed in the future.
4.9 PLANT MATERIALS FLOWSHEET

The plant materials flowsheet for 2 mtpy HRC production is given
in Appendix 4-1.
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BASHUNDHARA GROUP
5 - MAJOR PLANT FACILITIES
This chapter describes the major facilities envisaged for 2 mtpy

steel plant project. The major production facilities of the steel plant will
comprise raw materials handling system, calcining plant, steel melt shop and
thin slab casting and rolling. The plant will also have captive air separation
plant on Build-Own-Operate (BOO) basis to meet the plant oxygen
requirement.
5.1 RAW MATERIAL HANDLING AND STORAGE SYSTEM
5.1.1 Requirement of Raw Materials

The annual consumption of various raw materials and mode of
receipt is indicated in Table 5-1 on the next page.
5.1.2 Unloading and Storage Facility

In-bound materials viz. HBI, limestone and dolomite will be
received through dumpers. These materials will be unloaded in the ground
hopper and fed to the conveyor system for its onward transport to the
storage yard.
Ferro alloys will be received in bags through trucks and stored

inside Ferro alloy store by crane.
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BASHUNDHARA GROUP
5 - Major Plant Facilities (cont’d)
TABLE 5-1 - ANNUAL CONSUMPTION OF VARIOUS RAW MATERIALS

AND MODE OF RECEIPT
Gross Gross/net
Receipt Net annual annual daily
Sl. Size quantity quantity ( 1) quantity ( 2) Mode of
No. Material mm ton ton ton receipt
A. For Calcining Plant
i) Limestone 40-80 173,190 180,330 546 Road
ii) Dolomite 40-80 78,200 81,430 247 Road
B. For SMS
i) HBI - 694,000 - 2,313 Road
ii) Ferro-alloys - 43,000 - 144 Road
Note:
(1) Above figures are derived based on the following losses:
a) 2 per cent handling loss

b) 5 per cent screening loss
c) 5-10 per cent moisture loss
(2) Above figures are derived based on the following operating

day/year:
i) 330 days for Calcining plant

ii) 300 days for SMS
HBI, limestone and dolomite will be unloaded in the ground

hopper and the same will be stored in the covered storage area by travelling
tripper.
Ferro alloys will be received in bags through trucks and stored

inside Ferro alloy store by crane.
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BASHUNDHARA GROUP
A storage capacity of thirty (30) days has been considered for all
materials.
5.1.3 Despatch of Raw Material to Various Consuming Units

5.1.3.1 Despatch of raw material to lime calcining plant (LCP)
Limestone and dolomite stored in the stockyard will be reclaimed
manually through pay loader and fed on the hoppers installed on ground
conveyor for dispatch to the kiln feed building through conveyor system after
screening.
5.1.3.2 Despatch of raw material to steel melt shop
a) HBI stored in the stockyard will be reclaimed manually

through pay loader and transported to the covered scrap
yard by dumpers.
b) Lime and do-lime from storage building will be conveyed
to the storage bunkers of Steelmelt Shop (SMS) though
series of conveyors after screening.
c) Ferro alloys stored in the ferro alloy stores will be

conveyed to the storage bunkers of SMS shops though series
of conveyors.
The list of major equipment for material handling system is given in

Appendix-5-1.
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BASHUNDHARA GROUP
5.2 CALCINING PLANT

The calcining plant will produce lime and calcined dolomite for
using in steel melt shop. The size of calcined products will be 10 to 80 mm
and calcined products will be screened before conveying to s teel melt shop.
The undersize product fines will be stored separately for other uses.
The steel melt shop will produce 2.0 mtpy hot rolled coil .
Accordingly, the net annual requirement of calcined products for steel melt
shop has been estimated in Table 5-2.
TABLE 5-2 – NET REQUIREMENT OF CALCINED PRODUCTS
Calcined Product Net requirement

Lime, tpa .. 71,610
Calcined dolomite, tpa .. 30,690
5.2.1 Kiln Design and Capacity

It is proposed to install vertical shaft kiln of proven design to
produce soft burnt highly reactive lime and calcined dolomite. On the basis
of net requirement, the gross production of flux is indicated in Table 5-3.
TABLE 5-3 – GROSS REQUIREMENT OF FLUX
Calcined Product Gross Production

Lime, tpa .. 84,250
Dolomite, tpa .. 36,110
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BASHUNDHARA GROUP
The gross production figures include the product dust loss and
undersize which will be screened out. The materials balance for lime and
calcined dolomite are shown below in Fig. 5-1 and 5-2 respectively:
FIG. 5-1 - MATERIAL BALANCE FOR LIME
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BASHUNDHARA GROUP
FIG. 5-2 - MATERIAL BALANCE FOR CALCINED DOLO
It is considered necessary to keep extra capacity by about 10 per

cent in the kiln to take care of the fluctuation in the specific consumptions and
variation in raw materials quality. Hence, based on
330 days working in a year, the phase-wise daily peak requirement of
calcined products are indicated in Table5-4.
TABLE 5-4 – PEAK REQUIREMENT OF CALCINED PRODUCTS
Calcined Product Peak Requirement
Lime, tpd .. 280

Dolime, tpd .. 120
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BASHUNDHARA GROUP
On the basis of above peak requirement of flux, it is proposed

to install one 425 tpd vertical kiln to produce both lime and calcined
dolomite.
5.2.2 Raw Materials

The entire requirement of limestone and raw dolomite with low
impurities are envisaged to be imported from Thailand/ Middle-East
countries (UAE, Oman) . The typical chemical analysis of limestone and raw
dolomite are given in Table 5-5.
TABLE 5-5 – RAW MATERIALS ANALYSIS
Description CaO (%) MgO (%) SiO2 (%) Al2O3 (%) LOI (%)
Limestone 53-54 1.00 0.50-0.60 0.30-0.50 43.00
Raw Dolomite 28-30 19-20 1-1.50 0.50-0.60 45.00
The feed size of raw materials will be in the range of 40 mm

to 80 mm.
5.2.3 Plant Facilities

The calcining plant will comprise facilities for raw materials
storage, screening and handling, kiln with kiln feed building, calcined
products storage, handling and screening facilities.
5.2.4 Raw Materials Handling

Sized limestone and raw dolomite will be delivered to the plant
over a system of belt conveyors to the kiln feed building bunker s. Bunkers
will have suitable storage capacity.
In order to separate out the fines generated during handling, raw

materials will be screened before being fed into the kiln. The kiln feed building
will house raw materials screening facilities. The screened
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BASHUNDHARA GROUP
limestone and raw dolomite will be fed into the kilns by means of skip hoist
and stone distribution system located at kiln top.
5.2.5 Shaft Kiln

The shaft kilns will be installed on a specially designed RCC
platform. The kilns will be designed with required combustion system,
instruments and controls. The kilns will be lined with suitable grade of
refractories. Natural gas having calorific value of 8500 Kcal/Nm 3 will be
used as fuel for calcination purpose.
5.2.6 Product Handling

For conveying calcined products from below the kilns, belt
conveyors will be provided. Calcined products will be stored in product
storage bunkers. About one day’s stock will be maintained for the
calcined products. The undersize fraction of calcined products will be stored
in separate bunker and will be despatched in close container for other uses.
5.2.7 Other Facilities

In order to house the blowers, electrical equipment, instrument
and controls, a multistoried building will be constructed. The kiln
automation system will be housed in this building.
Various utilities, such as electric power, water, compressed air

etc, as well as fuel will be made available to the plant. The pla nt will be
provided with kiln waste gas cleaning system and dedusting system for
raw materials and product handling facilities.
The list of major equipment for calcining plant is given in Appendix

5-2.
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BASHUNDHARA GROUP
5.3 STEELMAKING
This section elaborates the steelmaking and casting process,
production programme and selection of major equipment. Salient features
of major equipment, estimated annual requirements of major raw materials,
major facilities and layout of steel melt shop are also discussed.
5.3.1 Steel Melt Shop Configuration

As discussed in Chapter 4, electric arc furnace (EAF) with
horizontal scrap preheating and continuous charging of scrap will be installed
for the production of liquid steel.Liquid steel will be treated in ladle furnace
(LF) and then cast in the form of thin slabs of the desired sizes for which one
single strand Thin Slab Casting and Rolling (TSCR) facility will be installed.
5.3.2 Production Programme

The production programme of liquid steel and hot rolled coils are
summarised below:
Liquid steel .. 2,046,000 ton

Hot Rolled Coils .. 2,000,000 ton
Steelmaking Process: The primary steelmaking unit will be

an ultra high powered (UHP) EAF with horizontal scrap preheating and
continuous charging of scrap. The furnace will be designed to operate with
a charge comprising purchased scrap and purchased HBI in the ratio 70 :
30, for production of desired steel grades. In keeping with the modern trend,
the EAF will be used mainly as an oxygen-assisted fast melting unit together
with continuous charging of preheated scrap.
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BASHUNDHARA GROUP
During the melting and partial refining process in the furnace,

mainly silicon and phosphorous will be brought down to the desired level and
the bath temperature will be suitably raised. Flux materials will be charged
into the furnace, as required. Liquid melt will be tapped in a pre-heated
ladle.
The semi-finished steel tapped from the EAF into a preheated

ladle will be transferred to LF. Provision of secondary metallurgy facility
will make it possible to carryout trimming, refining and super heating of
liquid steel that may be required before the casting operation. For this
purpose, a LF is envisaged for treatment of liquid steel from EAF. Future
provision of VD has been kept to cater to the secondary refining treatment for
some of the steel grades.
Continuous Casting of Liquid Steel: After treatment in

secondary metallurgy unit, the heat will be sent to the TSCR to be converted
into hot rolled coils (HR coils) through thin slab cas ting and subsequent hot
rolling.
5.3.3 Selection of Major Equipment

To match the above production programme, major equipment
like EAF, LF, and Thin slab caster are selected as follows:
Electric Arc Furnace: An EAF of 220 ton nominal capacity

with transformer rating of 200 MVA is proposed to be installed. Provision
of continuously charged preheated scrap, high power transformer and oxygen
assisted melting facility will reduce the melting time considerably.
Charge-mix: The metallic charge of the furnace shall generally

comprise purchased scrap, purchased HBI and plant return scrap.
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BASHUNDHARA GROUP
EAF availability: The EAF will be available for 300 effective

operating days per year, break-up for which is given below:
Calendar time, hrs .. 8,760
Weekly maintenance, hrs

(14 hrs/in 2 weeks incl. roof delta change) .. 350
Annual shut-down, hrs

(7 days of 24 hours) .. 168
Unplanned outage, hrs .. 240
Melt shop gross operating time, hrs .. ~ 8,000
Plant availability .. 90%
EAF availability, hrs .. 7,200
EAF availability, days .. 300
EAF cycle time: Based on continuous charging of preheated

scrap, EAF size with its transformer capacity, the average cycle time of the
furnace works out to be about 46 minutes. The break-up of a typical cycle time
of EAF is given in Table 5-6.
TABLE 5-6 - BREAK-UP OF EAF TAP-TO-TAP TIME
Activity Time, minutes
Furnace preparation 6
Charging -
Scrap and HBI melting, refining and super 37
heating
Tapping 3
Total 46
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BASHUNDHARA GROUP
EAF sizing: EAF sizing has been made according to the following
basis:
Nos. of EAF operating days/year .. 300

Tap-to-tap time, min .. 46
Nos. heats required per day .. 31
Required annual liquid steel .. 2,046,000
production, ton
Derived EAF capacity, ton .. 220
Production capability: Based on the above operating indices,

the production programme of the EAF shall conform to suit HR coil requirements.
The production calculation is given is Table 5-7 below.
TABLE 5-7 - EAF WITH SCRAP PREHEATING FACILITY PRODUCTION

CALCULATION
Net available time per year 300 days

Number of heats per day 31 heats
Heat weight 220 ton
Annual production capability (appx.) 2,046,000 ton
Ladle Furnace (LF): For the purpose of secondary metallurgy,

a ladle furnace (LF) of 220-ton capacity with 40 MVA transformer is envisaged
for further treatment of liquid steel from the EAF.
The LF will also function as a holding unit for facilitating

sequence casting of heats in the TSCR. This LF will be provided with arc
heating, inert gas rinsing, alloy and flux addition, temperature measurement
and sampling and wire feeding facilities. Functions to be carried out by the
LF can be broadly classified as:
a) Alloying and deoxidation

b) Stirring and temperature control
c) Control of steel chemistry
d) Inclusion shape control
e) Desulphurisation
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BASHUNDHARA GROUP
Continuous Casting: The entire liquid steel after treatment

in secondary metallurgy facilities will be cast in a single strand TSCR.
The machine will be designed for the envisaged steels grades of different
sizes. Thickness and width of the thin slabs will be adjusted as per product-
mix and production requirements. The machine shall be provided with all
requisite equipment for casting of quality thin slabs.
While the production rate will vary depending on slab size as well
as different grades of steel, the production capability of the caster have been
given in Table-5-8 below on a reference, width, thickness and casting speed.
TABLE 5-8 - PRODUCTION CAPABILITY OF CASTER
Heat size (liquid), ton .. 220

Reference slab size, mm x mm .. 1200 x 100
Reference casting speed, m/min .. 6.0
Average casting time, min .. 39
No. of heats per sequence .. 10
Restranding time, min .. 30
Total sequence time, min .. 420
No. of heats that can be cast/day/caster .. 34
TSCR availability, days .. 300
Production capability, mtpy .. 2.2
Yield %: The yield of metallic input to liquid steel and liquid steel
to HRC are as follows:
Metallic input to liquid steel .. ~ 88.5

Liquid steel to HRC .. ~ 97.5
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BASHUNDHARA GROUP
5.3.4 Annual Requirement of Raw Materials and Supplies

The annual requirement of major raw materials and supplies has
been estimated for an annual production of 2,046,000 ton of liquid steel and
is given in Table 5-9 below.
TABLE 5-9 - REQUIREMENT OF MAJOR RAW MATERIALS AND

SUPPLIES
Estimated net
Material requirement
tons/yr
Purchased scrap 1,587,000
Purchased HBI 694,000
Plant return scrap 31,300
Ferro alloys 43,000
Calcined lime 71,610
Calcined dolomite 30,700
Carbon (for injection and charged) 57,300
Electrodes 2,400
Oxygen, N cu m 74 x 106
Argon and Nitrogen, N cu m 410 x 103
5.3.5 Technical Features of Main Equipment and Facilities

Electric Arc Furnace: One No. of 220-ton EAF with
transformer rating of 200 MVA has been envisaged. EAF will be provided with
horizontal scrap preheating and oxygen assisted melting facilities which will
reduce the melting time considerably.
The metallic charge of the furnace shall comprise of purchased

scrap and plant return scrap from the various processing units.
Type .. Exchangeable shell type, UHP
with EBT tapping
Number of unit .. One
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BASHUNDHARA GROUP
Number of shells .. One complete shell (top and

bottom) with EBT design for
constructional steel
One complete shell (top and

bottom) as operational exchange
parts
Nominal capacity, ton .. 220
Hot heel capacity, ton .. ~100
Type of electrode arms .. Power conducting type
Transformer rating, MVA .. 200
Transformer tap .. On-load

changing
No. of transformer taps .. To suit furnace operation
Primary voltage, kV .. 33
Metallic charge .. Scrap and HBI
Method of charging .. Horizontal preheating and

continuous charging for scrap and
HBI
Continuous charging for flux

through fifth hole on EAF roof
and ferro alloys at ladle tapping
point
Method of oxygen .. Side wall mounted jet

blowing burners/injectors
The furnace will be equipped with water cooled wall panels,

EBT cover and water cooled roof, fume extraction for scrap preheating and
continuous charging scrap, continuous charging of flux materials through
a hole on the roof. Jet burners/injectors are provided to meet the process
requirement. These burners are oxygen injectors combined with a hydro-
carbon source as an external fuel. EAF will also be
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provided with power conducting arms, electrode clamping system with

spray cooling and carbon powder injection system.
The horizontal scrap preheating process: The pre-heated

scrap is continuously fed to EAF through an opening at the side wall. The
charge is loaded directly from the covered scrap yard on to a charging
conveyor. The charge is continuously transported towards the EAF while
being preheated by off gases leaving the running furnace. Once preheated,
the charge discharges into the EAF where it is continuously melted by the
liquid steel. This permits constant flat bath operation, which is another key
advantage over conventional EAF processes where scrap is melted directly
by the electric arc. The efficient use of available energy, meeting strict
environmental regulations, flicker reduction, harmonic disturbance
reduction, and productivity increases are some of the key features of the
system.
Charging of scrap and HBI: The metallic charge is loaded

continuously into EAF shell through an oscillating stick-slip type conveyor
divided in independent sections. The intermittent scrap yard is used to store
and charge sized-material by grab/magnet cranes onto an open conveyor
termed as charging conveyor. The conveyor is composed by a set of pans
mounted on a continuous steel truss along with the drive unit. Skirts are
installed on both sides of charging con veyor to guide the charge and protect
the underlying structures. The charge is then conveyed to the heating
conveyor which is of similar in construction except that the pans are water
cooled and is enclosed in a heating tunnel. The tunnel also conveys the off
gas to dedusting system. Post combustion burners are also present in the
tunnel closer to EAF that converts CO in the exhaust to CO 2 , thus the scrap
preheating is realized by not only recovering the specific heat contained in
the fumes but also by post combustion heat generation. Each section of the
conveyor is
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individually actuated by means of oscillating masses flanged on corresponding

section. The oscillating frequency of each section is regulated by variable
frequency feeders set to get the conve ying speed and charge flow.
Connecting car: The preheated charge in the heating

conveyor is then charged to furnace by means of connecting car. This is a
short retractable conveyor that connects between heating conveyor and the
furnace at side wall opening. The tip of car protrudes into EAF shell and the
preheated charge falls directly to steel bath without impacting the
refractory lining. When needed, the connecting car can be completely
withdrawn on its rails hydraulically to allow tapping and removing shell
without any hindrances.
Gas cleaning system: A combined fume extraction and gas

cleaning facilities will be provided for EAF and LF to extract the furnace
fumes through the preheating section of charging conveyor and adopter hood
of LF so as to discharge it to the atmosphere after cleaning. A canopy hood
will be provided over the EAF, which will be connected to the main system
to collect and clean the fugitive emissions during various steps of furnace
operation including charging and tapping. The gas cleaning system will be
complete with water cooled duct, fume and gas cooler, spark arrestor,
booster fans for EAF, LF and material handling dust extraction system,
bag house, ID fans and stack to meet the latest national norms of permitted
pollution levels for such installation. The cleaned gas discharged into the
atmosphere will have a dust content well within the statutory limits. The
dust collected in the bag house will be stored in a dust silo. Periodically,
the dust will be loaded into trucks for disposal. Fume extraction and gas
cleaning system with bag filters will be located in an area adjacent to the
shop.
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BASHUNDHARA GROUP
Ladle Furnace (LF): The salient features of the LF are indicated

below:
No. of units .. One
Nominal capacity .. 220 ton
Heating rate, max .. 4.5 0 C/min
Transformer rating .. 40 MVA
Type of unit .. Single station with twin car
Furnace cover .. Water cooled, lift and lower type
The LF shall be complete with water cooled ladle cover, arc

heating system, top and bottom inert gas stirring system, flux and alloy
addition system, wire feeder, automatic temperature measuring and sampling
system. Fume extraction system of the LF will be common with EAF. The
ladles will be brought to the treatment position on self- propelled transfer
cars provided with load cell based weighing facilities.
Thin Slab Casting and Rolling: The liquid steel

produced in EAF and subsequently treated in secondary refining unit will be
converted into hot rolled coils through thin slab casting and subsequent hot
rolling.
The process stages of thin slab casting and rolling are as

follows:
i) Casting of liquid steel in a continuous casting machine to
produce thin slabs.
ii) Temperature equalisation of thin slabs in a roller hearth

furnace (tunnel furnace) to achieve a uniform slab
temperature.
iii) Rolling of thin slabs in a continuous hot strip mill to achieve

desired final dimensions.
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BASHUNDHARA GROUP
iv) Controlled cooling on the run out table to achieve

desired metallurgical properties.
v) Coiling process to obtain product in a form, which can

be easily handled.
Design parameters: The design parameters of the thin slab

casters are given in Table 5-10.
TABLE 5-10 - DESIGN PARAMETERS OF THIN SLAB CASTER
No. of thin slab caster installed .. 1

No. of strands .. 1
Type of machine .. Vertical liquid bending
Casting speed, m/min .. 6 m/min (average)
Ladle handling .. Ladle turret
Tundish handling .. Tundish car
Tundish capacity, ton .. 55 (approx)
Dummy bar .. Rigid type
Withdrawal and straightening .. Pinch rolls
unit
Type of slab cutting .. Pendulum type mechanical
shear
Steel grades .. Steel grades for corrugated sheets,

construction, LPG cylinder, Llyod
grade for ship building and
automotive grades
Production capability and annual operating days: It is

envisaged that the annual production requirement will be met in 300
days of operation.
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BASHUNDHARA GROUP
While the production rate will vary depending on thin slab size
as well as different grades of steel, it has been considered that the caster has
the capability of casting 31 Nos. of heats produced per day.
Salient features envisaged for caster and related equipment are

as follows:
1. Ladle weighing facility at ladle turret.
2. Arrangement for handling of ladle cover at ladle turret.
3. Emergency drive for ladle turret.
4. Handling of ladle shroud and its manipulation.
5. Control of casting through stopper rod in the tundish.
6. Use of submerged entry nozzle (SEN).
7. Moulds and segments.
8. Use of electromagnetic brake (optional).
9. Number of segments and their lengths as per the design

of the equipment supplier.
10. Provision of soft reduction and liquid core reduction to

be made.
11. Dummy bar.
12. Pendulum type shear.
13. Hydraulic Mould oscillation system
14. Mould level detection control and break out prediction

system.
15. Strand monitoring system.
16. Secondary cooling.
17. Roll gap monitoring system.
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BASHUNDHARA GROUP
5.3.6 Major Facilities

The major facilities for the steelmelt shop are as follows:
Scrap Processing, Handling and Storage : The scrap

processing shall comprise of the following activities:
a) Unloading of purchased/imported scrap.
b) Segregation of undesired materials.
c) Gas cutting of heavy and odd shaped scrap.
d) Feeding and processing of scrap in the shredder as per

requirement.
e) Collection and storage of processed scrap from above

units and storing the same in the area allocated for
processed scrap storage.
Processed scrap from this storage area will be transported to

the covered scrap yard by means of dumpers for feeding the charging
conveyor of the EAF. Processing of in plant generated scrap like tundish
skulls, ladle skulls, crop cuts etc, will be carried out in a designated area
inside the plant, adjacent to the open scrap storage area.
HBI Handling and Storage: HBI stored in the stockyard will

be transported to the covered scrap yard by means of dumpers for feeding the
charging conveyor of the EAF.
Flux and Ferro Alloy Storage and Feeding Sys tem: One
set of material filling systems to the overhead bunkers will be
provided, for EAF and LF unit. Material handling system for the EAF and
LF units will be located adjacent to the furnace aisle.
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BASHUNDHARA GROUP
Calcined lime and calcined dolo will be stored in product storage

bunkers of the lime plant. From the storage bunkers calcined lime and
dolo will be conveyed to the storage bunkers of SMS though series of
conveyors after screening.
Ferro alloys and additives will be received by trucks and

containers from outside the plant and stored in ferroalloy store, for
subsequent supply to the process units. These materials will be conveyed to
the storage bunkers of SMS shop though series of conveyors.
For ferro alloys and flux feeding to EAF, ladle at tapping and
LF, a set of bunkers have been provided. Materials will be loaded into these
bunkers by means of an automatic belt conveying system. From the
bunkers, the materials will be discharged by vibrating feeders into a set of
weigh hoppers where the batch for alloying will be prepared. These batches
will be discharged into respective process units through a set of conveyor,
intermediate hopper, gates and transfer chute.
Automatic bunker filling, weighing, batching and charging system

of the materials shall be provided. This system will be operated through a PLC
based process automation system. Discharge of material from these bunkers to
the respective production units will be operated from the control rooms.
Liquid Steel Handling: The liquid steel from the EAF will
be tapped into a preheated ladle placed on a transfer car . An online ladle
preheater shall be provided for temperature adjustment in the ladle.
The ladle will be taken to LF for secondary metallurgical treatment

for trimming and degassing, prior to positioning in the casting machine. The ladle
handling for each transfer between the production
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BASHUNDHARA GROUP
units will be carried out by means of EOT cranes travelling in the furnace
aisle. LF will be provided with 2 nos. transfer cars with load cell based
weighing facilities.
On completion of the casting, the remnant slag in the ladle will

be dumped on the ground in specified areas and the ladle will be sent to
preparation area for cleaning, slide gate setting and preheating for the
next heat.
Slag Handling: The annual generation of slag in steelmelt shop

is estimated to be about 311,000 tons.
The EAF slag will be poured through the slag door of the
furnace in a slag pit and collected in the intermediate slag cooling area by
means of front-end loaders. The cooled slag from this intermediate area
will be disposed off to the slag storage area by dump trucks. In future, the
slag will be collected in slag pots which will be kept on self propelled slag
pot transfer car.
The ladle slag remaining after casting will be dumped in a slag

pit adjacent to ladle preparation area. This slag shall also be scooped by
the front end loader and loaded in rear dump trucks for transporting and
dumping at the slag storage area. The slag can be stored for 180 days in
this area. The slag from the storage area will be disposed off on a regular
basis by an outsourced agency.
Ladle Preparation, Vessel and Roof Relining: Facilities

for various ladle preparation activities such as deskulling , debricking,
relining, drying and preheating together with slide gate nozzle and porous
plug setting will be provided in the furnace aisle. The furnace aisle crane
will be utilized for these activities. A set of two horizontal ladle preheaters,
two vertical ladle preheaters/drye rs and a relining
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BASHUNDHARA GROUP
stand for three ladles have been envisaged to meet the production
requirement. One online vertical preheater is also envisaged.
Facilities for EAF roof preparation will be located in the furnace

aisle. Refractories required for relining will be received in trucks and stored
by the side of relining stands.
Facility for complete shell exchange has been planned in order to

minimize the down time of the production units. Required shell stands will be
provided to carry out this debricking/relining work on the shop floor. This
furnace shell refractories will be demolished by means of a mobile lining
demolisher.
A gunning and a fettling machine will also be provided for

intermediate spray gunning and fettling of furnace hearth. Both dry and wet
gunning facilities will be included.
Tundish Preparation: Tundish repair and preparation

activities will be carried out in the casting aisle of the shop. Tundish tilting
and nozzle removal stand, cooling stand, nozzle setting and relining stands,
drying station, will be installed for this purpose. Gunning machine will be
provided for spray gunning of tundish.
Mould Preparation: Mould preparation facilities shall

include mould testing stand, assembly stand, test stand, alignment stand,
storage stand, segment alignment stand, machining devices, cleaning stand
and templates.
Segment Preparation: Segment preparation facilities shall

include turning device for segment, segment tilting stand, spray cooling test
stand, segment alignment stand and segment storage stand.
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BASHUNDHARA GROUP
5.3.7 Steelmelt Shop Configuration

The steelmelt shop building comprises three adjacent and
parallel aisles namely furnace aisle, casting aisle and preparation aisle.
Adjacent to the steel melt shop there is one flux storage aisle also
storing calcined lime and dolomite in their respective concrete storage bins.
Ferro alloys and additives will be received from the respective stores/storage
areas by in-plant trucks, loaded into the ground hopper located in storage
aisle for subsequent supply to the process units. Combined gas cleaning plant
for EAF and LF is located adjacent to SMS.
Furnace Aisle: The liquid steel from the EAF in the furnace
aisle will be transferred in the same aisle by EOT cranes to LF. The
EAF shell and roof maintenance and ladle preparation facilities will also be
housed in this aisle. The ladle turret will also be located in this aisle in
order to restrict all ladle movements in this aisle. This aisle will be served
by two Nos. EOT cranes.
Casting Aisle and Preparation Aisle: The continuity of the

TSCR including the casting platform and tundish preheaters will be housed
in this aisle. This aisle shall also accommodate electrical building of the
caster and control rooms. The tundish repair, preparation and storage
facilities will be carried out in these adjacent two aisles on the south -east
side of the TSCR. The mould and segment preparation and storage facilities
will be carried out in the balance area of the two adjacent aisles on the
south-west side of the caster. There will be transfer cars on either side of the
TSCR for transport of tundish, mould and segment from casting aisle to
preparation aisle and vice versa. Each aisle will be served by two Nos. EOT
cranes for tundish, mould and segment handling, preparation and storage.
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BASHUNDHARA GROUP
Cranes and Hoists: Steel melt shop will be provided with

EOT cranes, jib cranes and maintenance hoists to meet the handling
requirement. The scrap handling cranes will be provided with both magnet
and grab facilities.
Ladle cranes will be of steel mill heavy duty type to meet the
steel ladle handling requirements. In addition to this, the main production
cranes will also be used for EAF shell exchange and ladle preparation. The
casting and preparation aisle cranes will be provided for tundish, mould
and segment preparation, handling and storage. The intermittent scrap
storage cranes will be provided with grab/magnet for charging the metallic
charge onto the charging conveyor of the furnace.
Jib cranes will be provided suitably at ladle and tundish

preparation facilities, number and capacity of which will be decided during
engineering. Maintenance hoist for cranes and shop maintenance work will
also be provided suitably.
The list of major equipment for steelmelt shop is given in

Appendix 5-3.
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5.4 ROLLING MILL

5.4.1 Thin Slab Casting and Rolling
Layout: The tunnel furnace, hot rolling mill and associate auxiliary
facilities are laid out to suit the material flow.
The roller hearth tunnel furnace is installed i n a bay

perpendicular to the thin slab caster bay. The mill bay is laid in
continuation to the tunnel furnace. Thin slabs from the tunnel furnace are
fed to the hot rolling mill, where slabs are rolled and discharged as hot
rolled coils from the downcoiler at the other end.
The coil yards are laid out parallel to the mill bay for despatch
of hot rolled coils by trailers. A leveler cum cut -to-length line for
production of plates has been envisaged in the coil yard. Alternatively, the
HR strip can also be produced in plate form by installation of inline shear
after the downcoiler.
The roll shop is located adjacent to the mill aisle for ease of
transportation of mill rolls between the roll shop and mill bay with the help
of roll transfer car. Depending on the finalized mill configuration, provision
of direct transfer of rolls to roll shop would be considered as well.
Process flow of Hot Rolling Mill: The continuous cast slabs

from the thin slab caster are fed to a roller hearth tunnel furnace installed
between the thin slab caster and hot rolling mill. The first half of the tunnel
furnace serves as a heating zone while the second half as holding zone for the
continuous cast slabs. The slabs are heated to achieve homogenous
temperature over their entire length. The slabs then pass through the
accelerating section, which increases their speed to that required for entry
to the hot rolling mill. As discussed above in one of the configuration of
hot strip mill, thin slab from caster is directly fed to hot rolling mill also,
thereby eliminating the tunnel furnace.
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BASHUNDHARA GROUP
After exiting from the tunnel furnace, the head end of thin slab
is cropped and subsequently passed through a high-pressure descaler
where water is sprayed simultaneously on top and bottom surfaces of the
slab to remove the scale. The descaled slab is then rolled in the hot rolling
mill to the desired thickness. The hot rolling mill could both be a 6 to 7
finishing stand mill or a combination of 2 to 3 roughing mill stands and 5
to 6 finishing mill stands. The rolled strip is then cooled to the coiling
temperature by the laminar cooling water spray system on the runout roller
table and then coiled at the downcoiler.
The hot rolled coil is transported by a coil conveyor system to

the coil storage yards for storage and subsequent despatch. Strip samples
for analysis at the stage laboratory are taken at the sample shear station
before the coil is strapped and weighed on coil strapping and weighing
machines installed inline on the coil conveyor. Th e hot rolled coils are
delivered by the coil conveyor system to the coil yards where they are
removed by the shop overhead cranes equipped with coil handling tongs.
Interbay coil transfer between the coil yards is carried out with the help of
coil transfer trolley. The coils are despatched from the coil yards on
trailers.
Hot Rolling Mill: The major equipment and facilities

envisaged for the hot rolling mill are described in the following paragraphs.
5.4.2 Design Basis

Product-mix: The proposed product-mix for nominal annual
production of 2.0 million tons of hot rolled coils from the hot rolling mill is
indicated in Table 5-11 on the next page.
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TABLE 5-11 – PRODUCT MIX
Capacity
Grades distribution (%)
Lloyd grade for shipbuilding 12.5
LPG cylinder grade 8.0
Steel grade for corrugated steel 42.5
Construction grades 29.0
Automotive grades 8.0
Total 100
The specification of hot rolled product will be as follows:
Note: * The maximum thickness and width will be finalized during

execution, as maximum thickness and width vary from with supplier to
supplier. Finalizing the same at this stage may restrict the participation of
suppliers with different technology and facilities of TSCR during the project
procurement stage.
Yield: A yield of approx. 97.5 percent has been considered

from liquid steel to hot rolled coils for Thin Slab Casting and Rolling
Strip thickness, mm .. 1.5 - 16

Strip width, mm .. 900 - 1500
Plate thickness, mm .. 16 – 25*
Plate width, mm .. 1500* (max.)
plant.
Mill Availability: To meet the production requirement of

2.0 mtpy of hot rolled coils, the following mill availability is envisaged:
Total calendar days : 365 days/year

Annual major shutdown : 7 days/year
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BASHUNDHARA GROUP
Monthly shutdowns : 24 days/year

(~ 48 hours/month)
Scheduled operating days : 334 days/year
Unscheduled delays : 34 days/year
(approx. 10%)
Mill available time : 300 days or

7200 hours
Roll change : 334 hours/year
(~ 1 hour/day)
Net available rolling time : 6866 hours/year

Say 6850 hours/year
Equipment: The thin slab casting and rolling mill complex

consists of the thin slab caster, roller hearth tunnel furnace and hot rolling
mill with roll and bearing shop. A brief descripti on of major facilities
envisaged is given below.
Tunnel furnace: One roller hearth tunnel furnaces has been

envisaged for heating and equalizing continuously cast thin slabs for
subsequent rolling to finished strip. The furnace will be installed in between
the caster and the mill. The furnace will be of recuperative tunnel type and
will serve to both heat the slabs and also convey them from the caster exit
to the rolling mill.
Length of furnace will be such as to ensure buffer time required

for accommodating the changing of work rolls of the finishing mill. Furnace
speed will be variable and decided according to the variations in casting and
rolling speed.
The furnaces will be constructed from rolled steel sections and

plates. Roof sections will be of removable type for maintenance of furnace
inside. The furnaces will be suitably lined with refractory and
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insulation material. The upper part of the furnace will be lined with ceramic
fibre modules. Combustion system will consist of adequate number of
burners and blowers. Burners will be suitable for natural gas firing. Requisite
number of recuperators will be provided for preheating of combustion air.
Waste gas exhaust system comprising flue off -takes, flue ducting and natural
draft chimneys will be provided. Water cooled and individually driven rolls
will be provided for conveyance of slabs through the furnace. Electrical
equipment of furnace will be complete with MCC, VVVF drive control
units, motors, operator's console, push button station, etc.
Furnace will be provided with computer control system for

performing combustion, temperature and roll speed control functions as well
as product tracking. CCTV cameras will be installed for visualization of
strategic areas of the furnace.
Hot Rolling Mill: Rolling mill configuration considered for

the purpose of this report is with two roughing stands and four finishing mill
stands in a row. However, the actual mill configuration will be finalised
during execution stage of the Project.
The hot strip mill facilities consists of a crop shear, hydraulic

descaler, two stand roughing mill/heavy reduction mill and continuous
4-stand finishing mill train, run-out roller table with laminar strip water
cooling zone, two nos. downcoilers, coil conveying syste m, coil yard and
roll shop.
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The features of major mill equipment are briefly described

below:
High Pressure Descaler: A high pressure (water pressure:

300-400 bar) descaler consisting of two sets of pinch rolls, top and bottom
headers with flat jet nozzles and water catchers will be provided at entry to
the roughing mill train and finishing mill train to remove scales from the
thin slab.
The pinch rolls on entry and exit side of the descaler will be of
solid forged steel construction and would prevent water ingress into the
preceding and succeeding equipment. The top pinch rolls will be provided
with pneumatic adjustment.
The descaling water system will be complete with suitable filtration

unit and booster pumps. Water will be supplied from the DCW circuit of the mill
water system.
Rolling stands: Two roughing mills/ high reduction mill

stands with 4-high configuration will be provided along with a finishing mill
train, comprising of four Nos. 4-high stands, will be provided. Each mill stand
will include rigid housings, work rolls and back-up rolls with roll changing
devices, hydraulic roll gap adjustment and automatic gauge control.
The work rolls shall be supported on tapered roller bearings

housed in cast steel chocks. The back-up rolls shall be supported on oil film
bearings and roller thrust bearings in cast steel chocks. The work rolls and
back-up rolls shall be held in the housing by hydraulically actuated clamps.
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The top back-up roll shall be balanced by hydraulic cylinder,

mounted on mill housing-top and acting centrally upon a common balancing
crossbeam. The top back-up roll chocks shall be suspended from the
balancing cross beam. The top back-up roll chocks will be automatically
detached by lowering the balancing crossbeam at t he time of changing the
back-up rolls.
The mill stands shall be provided with work roll bending and
axial shifting of work rolls wherever required for strip profile and flatness
control. The balancing cum bending cylinders and the shifting cylinders will
be mounted in cylinder blocks fitted on mill windows and acting on work roll
chocks.
Suitable roll cooling pipes, headers and spray nozzles will be

provided. Water headers will be provided between finishing stands for
suppression of scale and to regulate strip temperature, if required. Low-
pressure sprays between all stands will be provided to suppress the oxide
dust.
Automatic quick work roll changing system consisting of

hydraulic roll extractors and side-shifters will be provided. The design of
stripper guides, headers, etc. with hydraulic retraction where required will be
provided to ensure minimum roll change time during rolling. Bottom back-up
roll will be placed on a sled, which can be extracted by a hydraulic cylinder.
Interstand loopers of modern design in consonance with fast

automatic controls will be provided in the finishing train. The rolls will be
of hardened steel tubes with anti-friction bearings. Looper frames will be of
sturdy welded design.
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Run-out table: Run-out roller table will transport the hot rolled
strip emerging from the last finishing mill stand to the downcoiler. The hollow
steel table rollers shall be individually driven and mounted on anti-friction
bearings. Each table roller along with foot mounted motor will be
individually mounted on the table frame for easy replacement during
maintenance. Fixed splashguards will be provided on both sides of the run-
out roller table. Space provision shall be kept in the layout for installation
of top and bottom strip surfac e inspection system at a later date. The top
strip surface inspection system shall be installed at the exit of finishing mill and
the bottom strip surface inspection system shall be installed near the
downcoiler.
Laminar cooling system: The hot rolled strip will be cooled

to the coiling temperature on the run-out roller table by laminar cooling
system with top and bottom headers for spraying water on both top and bottom
surfaces of the strip. The strip cooling system will be divided into a number
of sections to facilitate controlled cooling. Shut-off valves will control each
section of the manifold pipe. Each section will be complete with overhead
header boxes, under-strip header pipes, siphon nozzles on both sides of the
header, spray nozzles, connecting pipes, valves, manifolds, support
structure, deflector plates, etc. Spray headers shall be tiltable to facilitate
removal of cobbles. The system will be designed so as to cover the whole
width of the strip. Lateral sprays will be provided in order to blow-off
residual water from the top of the strip.
Downcoiler: Two universal hydraulic downcoilers (three or four

wrapper roll type) will be provided to coil the full range of strip sizes included
in the Product Mix. The downcoiler will ensure tight wound coils without
marking on the strip surface. The downcoiler will be complete with entry
side guides, pinch rolls, mandrel and wrapper rolls.
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BASHUNDHARA GROUP
The collapsible mandrel with rotating hydraulic cylinder will be

provided with outboard bearings. The wrapper ro lls will be position
controlled by hydraulic cylinders and position transducers to prevent head-
end marking of the strip and minimise the shocks during coiling. The
wrapper rolls will be driven through splined shafts with cross pin type
couplings by motors located outside the coiler housing.
A coil extraction car will be provided for removing the wound

hot rolled coil from the mandrel. The coil car will consist of carriage for
traversing topped by cradle rollers. The carriage will be of welded
construction and mounted on wheels running on anti-friction bearings. The
carriage will be hydraulically traversed and will move on steel rails. In order
to prevent coil from springing open, the cradle rollers of the coil car will be
capable of being arrested.
Coil conveyor system: The coil conveyor system will include

all necessary equipment designed to deliver the coils to the coil yard after
sampling, strapping, weighing and marking. The conveying system will
include coil transport cars, coil sampling statio n, strapping machines for coil
circumferential and eye strapping, walking beam conveyors, coil weighing and
marking machines. The coils shall be transported with coil eye in horizontal
direction.
The conveyor system will be divided into sections, which will

transport the coils step-by-step into the coil storage and despatch bays. The
first section of the conveyor system located in the mill aisle will receive the
coil from the coil car. The subsequent sections take over the coils and move
them to the storage bays.
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A sampling station complete with cradle rolls, hold down rolls,

sampling shear, sample and scrap removal system shall be provided.
Automatic strapping machines suitable for applying circumferential and eye
straps to the coils shall be provided on the walking beam conveyor. The
strapping machines will be complete with strap dispenser, strapping head,
frame structure and strap chutes. Facilities will be provided for loading of
new strap coils.
An in-line coil-weighing machine with load cells will be

provided on the walking beam conveyor. A multi-nozzle paint-marking
machine for marking the hot rolled coils on the sides and face will be provided
near the weighing machine. The marking machine will be complete with
safety fence, heat shield, robot and paint circulation system.
Coil yards: The coils shall be unloaded from the coil

conveyor at designated locations by the EOT cranes of the coil yards. Rotating
telescopic type coil tongs shall be provided on the EOT cranes for handling
of coils and changing the direction of coil eye if required during coil despatch.
Two inter-bay coil transfer trolley shall be installed to transfer the coils
from one coil yard to the other yard, if required. Coil yards shall be designed
for storage and handling of about seven days production of hot rolled coils
from the Thin Slab Casting and Rolling plant. 2-high loading of coils has been
considered on the coil saddles in the coil yards. Despatch of coils shall be
carried out by trailers.
For production of plates from hot rolled coils a leveler cum cut-
to-length line has been envisaged in the coil yard. Alternatively similar line can
be installed at the end of the main rolling line after the down coilers.
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BASHUNDHARA GROUP
Roll and bearing shop: For regrinding of hot strip mill

work rolls and back-up rolls, pinch rolls, shear knives and for disassembly,
cleaning, inspection and assembly of bearings and chocks, a roll and
bearing shop is envisaged in the hot strip mill complex.
The major equipment in the roll and bearing shop will be the
following:
a) Two CNC work roll grinders for work rolls of finishing
mill and other rolls.
b) Two CNC Combi roll grinders for back-up rolls, work

rolls and other rolls of the mill.
c) One shear blade grinder for knives of shear at

emergency shear at furnace exit and sampling shear.
d) One chock and bearing cleaning equipment for

assembly of work rolls chocks of finishing mill.
e) One back-up roll bearing cleaning equipment.
f) One roll cleaning unit for mill rolls.
g) One work roll cooling unit.
h) One combi chock tilter.
i) One Morgoil bearing assembly/dismantling device.
j) One work roll chock changing device.
k) Induction heating device for dismantling of inner

races/labyrinths of work roll anti-friction bearings.
l) Handling equipment, roll storage racks and pads,

fabricated steel rocks, workbenches, inspection tables,
tools and tackles, instrument and gauges as required.
m) Two roll transfer car for transfer of work rolls and back-
up rolls from and to the mill bay.
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n) Hydraulic power packs, machine tool accessories such

as tool and cutter grinder, double ended pedestal
grinder, portable hand grinder, universal transportable,
emulsion waste pump etc.
o) One Back up roll chock changing device.
p) Greasing station for work rolls.
m) Jib cranes, mechanical and electrical hoist.
n) One CNC roll turning lathe.
The list of major equipment for rolling mill is given in

Appendix 5-4.
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5.5 AIR SEPARATION PLANT

To meet the requirement of industrial gases like oxygen, nitrogen
and argon for various process facilities, an Air Separation Plant of suitable
capacity is proposed to be installed.
Oxygen: Oxygen (99.5 percent purity) will be required in Electric

Arc Furnace (EAF), Ladle Furnace (LF), Thin Slab Casting and Rolling (TSCR).
The average hourly requirement of oxygen is given in Table 5-12.
TABLE 5-12 - AVERAGE HOURLY REQUIREMENT OF OXYGEN

(NCUM/HR)
Consumers Flow
EAF .. 10,280
TSCR .. 155
General purpose .. 760
Losses and liquid storage .. 1,455
Total .. 12,650
Nitrogen: Nitrogen (99.99 percent purity) will be required in

SMS, various purging operation of fuel gas and oxygen pipelines in the plant.
The average hourly requirement of nitrogen is given in Table

5-13 on the next page.
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TABLE 5-13 - AVERAGE HOURLY REQUIREMENT OF NITROGEN

(NCUM/HR)
Consumers Flow
EAF .. 2,558
LF .. 740
TSCR .. 600
Miscellaneous (instrument, purging
.. 500
etc.)
Losses and liquid storage .. 570
Total .. 4,968
Argon: Argon (99.999 percent purity) will be required for

ladle stirring and for shrouding in casters.
The average hourly requirement of argon is given in

Table 5-14.
TABLE 5-14 - AVERAGE HOURLY REQUIREMENT OF ARGON

(NCUM/HR)
Consumers Flow
SMS .. 75
Losses and liquid storage .. 10
Total .. 85
Facilities Proposed: To meet the above requirement of

oxygen, nitrogen and argon, cryogenic air separation plant of capacity 1 x
435 tons per day (TPD) has been envisaged.
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Besides, the plant will have adequate liquid generation and

storage capacity so as to supply oxygen, nitrogen and argon in the event of
stoppage of operation of the air separation plant.
Buffer vessels and pressure reducing stations for oxygen, nitrogen

and argon will also be provided to cater to the various peak requirements of the
process.
The list of major equipment for air separation plant is given in

Appendix 5-5.
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Techn- Economic Feasibility Report
6 - UTILITY AND SERVICE FACILITIES
This chapter deals with the supporting facilities namely

electric power, water, utilities, instrumentation and Level-1 automation,
plant layout and logistics, auxiliary facilities and ancillary buildings for
the proposed 2 mtpy steel plant.
6.1 ELECTRIC POWER

This section presents the estimated power requirements for
the proposed plant, characteristics of plant loads, source of power and
power distribution arrangement as well as brief technical details of major
electrical equipment for the proposed steel plant.
6.1.1 Plant Power Requirements

The estimated overall plant power requirements for the
proposed steel plant are given in Table 6-1.
TABLE 6-1 – ESTIMATED PLANT POWER REQUIREMENTS
Annual energy consumption, million kWh .. 1506
15-min. maximum demand,
- in MW .. 242
- in MVA at 0.9 power factor .. 269
6.1.2 Characteristics of Plant Loads

The major consumers of power for the proposed plant viz.
electric arc furnace (EAF) and ladle furnace (LF) will be fluctuating power
consumers and will impose flicker and harmonics in the power system. The
large main drives of mill will impose active power swing in the power
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6 - Utility and Service Facilities (cont’d)
system. The utility and auxiliary system, plant facilities like air
separation unit and water treatment facility will be more or less steady
power consumers.
6.1.3 Source of Power

It is presumed that power will be made available by the power
supply authority at one of its 400 kV grid substation near to the proposed
plant location and having minimum 3-phase short circuit level of 6000
MVA.
6.1.4 Emergency Power Supply

To meet any exigency of total power failure, it is proposed to
install diesel generator sets at various plant units for feeding emergency
lighting system for a minimum illumination level as required for safe
operation and shutdown.
6.1.5 Construction Power Supply

Construction power supply will be arranged through mobile DG
sets as well as through establishment of construction power step down
substations (CPSS) at various locations with a temporary in -feed
arrangement from nearby utility system at voltage level of 33 kV or 11 kV.
6.1.6 Power Distribution System

Selection of voltages: The interconnection with grid
substation is envisaged to be made at 400 kV and hence, 400 kV has been
considered as the plant main receiving voltage.
It is proposed to select 33 kV as primary voltage for furnace

power supply as this is considered to be the most suitable voltage for
transmission of power to EAF and LF of such rating as well as for design of
furnace transformers.
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6.6 kV has been chosen as plant secondary distribution voltage

and also to feed motors of rating 200 kW and above.
415-240 V has been selected for low voltage distribution as well as

utilisation voltage within various plant units for coke oven plant.
6.1.7 Power Distribution Arrangement

The plant power distribution scheme is shown in drawing No.
30691-97A-000-ELE-0001. The basic features of the distribution scheme
are as given below:
A 400 kV main receiving and step-down substation (MRSS) will

be established in the proposed area for the new steel plant. The transmission
lines from nearby 400 kV grid substation will be terminated at the incoming
line gantries of MRSS.
A 400 kV Gas Insulated Switchgear (GIS) with double bus

configuration having two nos. incomer bays, one no. bus–coupler bay and
four nos. outgoing bays, will be installed at 400 kV GIS building of MRSS.
The 400 kV incoming transmission lines, terminated at gantries,

will be connected to the incomer bays of 400 kV GIS over SF6 gas insulated
busduct.
Further, one 33 kV GIS will be installed in the 33 kV GIS

building of MRSS. The 33 kV GIS will have one dirty bus section dedicated
for feeding fluctuating 200 T/200 MVA EAF and 200 T / 40 MVA LF. The
other bus sections will be dedicated for feeding steel melt shop (SMS)
auxiliaries, mill and balance plant units.
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BASHUNDHARA GROUP
Four nos. 100/125 MVA, 400/33 kV transformers will be

installed at MRSS. Two nos. 400/33 kV transformers will have primary side
cable connection from outgoing bays of 400 kV GIS and the secondary sides
will be connected over cables to incoming bays of dirty bus section of the
33 kV GIS and other two nos. 400/33 kV transformers will have similar
primary side connection and their secondary sides will be connected over
cables to incoming bays of other bus sections of the 33 kV GIS.
The furnace power at 33 kV will be carried from the outgoing

bays at dirty bus section of the 33 kV GIS to respective 33 kV furnace
switchgears of EAF and LF located at SMS area over 33 kV cable feeders.
Suitably rated dynamic VAR Compensation equipment and harmonic filter
banks will be installed near MRSS and will be connected to the another two
nos. outgoing bays at dirty bus section of the 33 kV GIS over
72.5 kV outdoor switchgear.
The bulk power for SMS auxiliaries, mill and plant facilities like
air separation plant (ASP) and water treatment plant (WTP) will be carried
over 33 kV cables from six nos. outgoing bays at clean b us section of the
33 kV GIS up to the 33/6.6 kV load block step -down substations LBSS-1,
LBSS-2 and LBSS-3 located at WTP area, SMS area, and mill area
respectively.
The power at respective 33/6.6 kV load block step-down

substations will be received at 33 kV GIS. At load block substations, two nos.
of outgoing feeders of 33 kV GIS will be utilized to step down 33 kV to 6.6
kV over two nos. 25/31.5 MVA, 33/6.9 kV power transformers for further
power distribution from a 6.6 kV switchboard. The power for large motors
of air compressor plant and medium voltage motor control centres of WTP
motors and other consumers at WTP and ASP areas
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including lighting, ventilation system will be directly arranged from 6.6 kV

switchboard located LBSS-1. Similarly, the power for fume treatment plant
motors, shop cranes, SMS auxiliaries, lighting and ventilation system at
steel melt shop areas will be arranged from 6.6 kV switchboard located at
LBSS-2. The large mill main drive motors will be fed from 33kV GIS at
LBSS-3 over suitably rated converter transformers and latest generation
active front end power converters. The power for mill auxiliary drives, roll
shop and other non process loads like crane, lighting and ventilation system
will be directly arranged from the 6.6 kV switchboard located LBSS-3.
The low voltage consumers of various plant units will be fed from
6.6 kV/ 415 V load centre step-down substation (LCSS). At LCSS the
power will be stepped down over 6.6/0.433-0.250 kV transformers and will
be distributed from 415-240 V switchboards. For large heavy duty ladle
cranes in steel melt shop, 6.6 kV/ 690 V crane LCSS are proposed to
feed the DSL of the bays for these cranes from 690 V switchboards. The
transformers and switchboards of LCSS will preferably have bus-duct
connectivity.
6.1.8 Selection of Electrical Equipment

The type and ratings of various major electrical equipment proposed
to be adopted for the plant are briefly reviewed below.
6.1.9 Power Transformers

The power transformer ratings proposed to be adopted for the
power distribution system are given in Table 6-2 on the next page.
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TABLE 6-2 – POWER TRANSFORMER RATINGS
Nominal Type of Type of

ratio Type Capacity cooling tap changer
(kV) (MVA)
400/33 Outdoor 100/125 ONAN/ONAF On-load
33/6.9 Outdoor 25/31.5 ONAN/ONAF On–load
6.6/0.72 Indoor 2.5 or 2 ONAN or AN Off–circuit
6.6/0.433 Indoor 2.5 or 2 ONAN or AN Off–circuit
6.1.10 HV and LV Switchgears

The continuous and interrupting current ratings of the
circuit breakers proposed to be adopted are given in Table 6-3.
TABLE 6-3 – SWITCHGEAR RATINGS
Type of Continuous Interrupting

Voltage Type of circuit- current current
rating switcgear breakers rating rating
(kV) (A) (kA)
400 Indoor, gas SF6 2500 63

Insulated
33 Indoor, gas Vacuum 2500 40

Insulated
6.6 Indoor, air Vacuum 3150 40

Insulated 2500 40
1250 40
0.690 Indoor, air Air 2500 50

Insulated 2000 50
1600 50
0.415 Indoor, air Air 4000 50

Insulated 3200 50
2500 50
1600 50
800 50
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6.1.11 System Relaying and Metering

Adequately rated, quick acting high voltage circuit breakers
aided by reliable and selective communicable type numerical relays will be
adopted for quick isolation of faults. Microprocessor based releases will be
adopted for isolation of faults in low voltage system. Relays/releases will be
properly graded for discriminative and selective tripping. For measurement
of various electrical parameters at different points of the power system,
indicating, integrating and recording type instruments will be adopted.
Protection and metering schemes for various substations will be finalized
during implementation st age.
6.1.12 Reactive Power Compensation

The simultaneous operation of such large electric arc furnace
and ladle furnace in the proposed plant will cause power quality problems
like flicker, harmonics and poor power factor at the point of common
coupling (PCC). So, dynamic compensation system with IGBT based
voltage source converter (VSC) and harmonic filter banks have been
envisaged so to efficiently mitigate the flicker, eliminate harmonics and
improve overall power factor above 0.95 at PCC. These compensatio n
equipments will be installed beside the MRSS of proposed plant.
The VSC along with a high pass filter will be connected to a

33 kV GIS outgoing bay at MRSS over a coupling air core reactor,
disconnector switch and 72.5 kV class SF6 circuit breaker. Th e harmonic
filter banks will be connected to another 33 kV GIS outgoing bay over a
disconnector switch and 72.5 kV class SF6 circuit breaker.
6.1.13 Energy Saving Measures

Energy conservation will be implemented in technological
processes through process optimisation and energy recovery measures. In
case of higher rated pump and fan applications, where variable flow is
required, it is proposed to adopt variable speed drive with V/F control or
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BASHUNDHARA GROUP
vector control to ensure energy savings by matching the respective f lows with
process requirements. Moreover, energy efficient motors will be adopted for
constant speed applications.
Use of energy efficient lighting fittings like LED will be

considered as applicable. Possibility of use of solar power for road/area
lighting will also be explored to reduce the consumption of electrical energy.
6.1.14 Substation Automation System

For all 400 kV, 33 kV and 6.6 kV substations proposed for the
plant, local substation automation system (SAS) will be provided. SAS
will be numerical relay based and will be provided with supervisory
control and data acquisition functions viz. metering, alarms, status
monitoring, relay parameterisation, trending, logging etc as well as energy
management functions. SAS will also have provision for hooking up with
a central station for status monitoring, metering and emergency control
functions for the 400 kV, 33 kV and 6.6 kV distribution systems.
6.1.15 Diesel Generator Set

During total power failure i.e. outage of grid power supply to
the critical loads within various plant units are proposed to be met from local
diesel generator (DG) sets in order to avoid injury to personnel and damage
of equipment. The DG sets will be provided complete with engines,
alternators, fuel systems, lubricating oil systems, starting systems, cooling
systems etc. Automatic mains failure (AMF) starting facility will also be
provided. The capacities of the DG sets will be finalised during
implementation stage based on actual unitwise emergency power
requirement.
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6.1.16 Uninterrupted Power Supply Unit (UPS)

UPS will be installed at selected locations to cater to the
requirements of instant stabilised power for short periods for proper
functioning of instrumentation and automation system in case of power
failure.
6.1.17 Motors and Controls

The plant drives can be broadly classified in to two categories,
namely:
Application Choice of drives
Those requiring Variable speed drives with

accurate speed control specially designed squirrel
over a speed range, cage induction motors.
position control, etc.
Those not requiring Full voltage/reduced

such controlled voltage starting gear with
operation standard 3-phase AC
squirrel cage induction
motors.
For mill applications, specially designed adjustable speed AC

motors are proposed for powering the main stands as well as auxiliaries.
These motors will be suitable for continuous mill duty application having
high overload capability to meet the process requirements . These drives are
proposed to have adjustable voltage and frequency control through individual
IGBT based voltage source inverter (VSI) drives and digital regulation
system and associated control, protection and power circuit devices.
Wherever required, grouping of inverter drives will be done and these will be
fed from common converter over common DC bus.
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For other applications requiring variable speed control in various

plant units, specially designed AC motors are proposed with variable voltage
variable frequency static inverters having digital regulation, associated
controls, protection and annunciation system with speed/torque control
features.
For continuous duty, it is proposed to adopt industrial type,

energy efficient squirrel cage induction motors of totally enclosed , fan
cooled design. In case of intermittent operation requiring high starting
torque, squirrel cage motors with VVVF drives will be adopted . The standard
415 V, 3-phase, AC motors will have class F insulation with temperature rise
limited to that for class B insulation . Motors, which are too large for 415
V system, generally from 200 kW upto 2000 kW, will be fed at 6.6 kV supply.
All 415 V AC fixed speed motors will be fed from cubicle type
415 V motor control centres (MCC) with direct–on–line starters comprising
moulded case circuit– breakers having positive isolation feature and with
overload, short circuit and earth fault releases, magnetic contactors,
separate electronic overload relays etc.
Provision of state-of-the-art technology with intelligent MCCs

having direct field-bus connectivity with Level-1 automation system will also
be reviewed during engineering stage. Moreover, for 4 15 V motors having
higher ratings, necessity of providing assisted starters will be reviewed
during engineering stage.
The 6.6 kV motors will be fed from cubicle type motor control
centres (MCC) comprising requisite number of motor feeders with HRC fuses and
vacuum contactor /Vacuum circuit breaker and numerical motor protection
relays with monitoring facilities.
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For large drives, such as compressors of air separation plant,

will be provided with medium voltage electronic soft starter or auto-
transformer starting which may be finalised during engineering.
All sequencing, interlocking and control functions for various

processes will be through state-of-the-art Distributed Control Systems
(DCS)/programmable logic controllers (PLCs) having in–built diagnostic
features.
6.1.18 Power and Control Cables

400 kV, 33 kV, 6.6 kV distribution network inside the plant
has been planned to be established using XLPE i nsulated copper conductor
power cables.
400 kV (E), 33 kV (E), 6.6 kV (UE) grade cables will be used for
400 kV, 33 kV and 6.6 kV systems respectively. The cables will comprise
compacted stranded copper conductor with semi -conducting conductor
screen, XLPE insulation, semi-conducting tape and copper wire insulation
screen, extruded PVC inner sheath, galvanized steel wire/flat armour and
extruded PVC outer sheath.
Cables for 690 V and 400 V systems will be of 1.1 kV grade,

PVC / XLPE insulated, PVC sheathed, armoured/unarmoured and overall
PVC sheathed type with copper conductors. Multi core, PVC insulated,
armoured/unarmoured and overall PVC sheathed cables with copper
conductors will be used for control applications. Special cables will be used
for signal/data transmission as required. Cables of special heat
resistant type will be provided in locations having high ambient
temperatures.
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6.1.19 Interplant Cabling

Generally all interplant cables will be routed above ground.
Wherever possible, common steel structure will be adopted for routing of
utility pipe lines as well as cables. Where it is not feasible to use common
structure, separate overhead cable gallery will be constructed for laying
of cables.
6.1.20 Earthing and Lightning Protection

The plant 400 kV and 33 kV systems will be solidly earthed
whereas 6.6 kV system will be earthed through resistance so as to reduce
the earth fault current. The 690 V and 415 V systems will be solidly earthed.
Requisite number of earth stations, each having earth electrodes

will be provided both for system earthing as well as for equipment earthing.
Separate earth network and stations will be provided for special electronic
and computer system earthing, if necessary.
In order to provide effective protection against travelling

waves due to lightning strokes on the 400 kV incoming overhead lines, as
well as switching surges, station type lightning arrestors are proposed to
be installed at MRSS.
Lightning protection systems will be provided for all plant buildings

including ancillary buildings, chimneys, overhead tanks etc.
6.1.21 Plant Lighting System

The plant lighting system with energy efficient type fittings like
LEDs will be provided to meet illumination requirements for different units
of the plant. In substations and control rooms, emergency lighting will
be provided in addition to the general illumination .
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Emergency lighting will also be provided for other critical areas of the
plant as required.
For high-bay areas, high-bay type fittings with high pressure

sodium vapour lamps are proposed, whereas for general lighting in low bay
areas, direct or semi–direct type fittings with fluorescent and high pressure
sodium vapour lamps are proposed. For illumination of outdoor yards, flood
light fittings with sodium vapour lamps and road lighting fittings with sodium
vapour lamps are proposed.
Switching of illumination system through DCS/PLC system

will be provided for un–attended area. Photo sensor and contactor
arrangement may be implemented for automatic switching of outdoor light
fittings.
The lighting power supply will be arranged from the 415 V AC,
3phase, 4wire distribution system in various plant departments. Lighting
power will be distributed through main lighting distribution boards and sub-
lighting distribution boards.
The list of major equipment for electric power distribution

system is given in Appendix-6-1.
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6.2 WATER SYSTEM

This section deals with the water system for the proposed
integrated steel plant. Water is primarily required in the steel plant for
equipment cooling. In addition, it is also required for process use, for
collecting and conveying of scales, control of dust and debris; for drinking
and sanitation; for fire-fighting. The method of collection, treatment and
disposal of plant effluent and rain water harvesting also have been
discussed.
6.2.1 Water Requirement

It is estimated that the total make up water quantity for
proposed plant will be about 830 cum/hr respectively. The estimated
consumer-wise break-up of the make-up water requirement for the plant is
given in following Table 6-4:
TABLE 6-4 - MAKE-UP WATER REQUIREMENT
Sl. Make-up water

No. Consumers cum/hr
1 Electric Arc furnace 190
2 Ladle Furnace 15
3 Thin slab casting and rolling 565
5 Air Separation Plant 45
Other Miscellaneous (Fire 100

6 fighting, Calcining plant,
Drinking and sanitary etc.)
Total Make up Soft Water 55
7
requirement
Make-up Water basin 30
8
Evaporation loss
Total 1,000
Recovery from effluent 170
treated in CETP and STP
Net make up water 830
requirement
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Notes:
1. Blowdown generated in the indirect cooling water circuit
will be used as make-up in contaminated circuit.
2. Blowdown from the cooling circuit will be collected in the
common effluent treatment plant and the same will be treated
and recycled to the consumers of low end application.
3. Waste backwash of filtration plants of various
contaminated circuits will be treated and reused within
respective systems.
6.2.2 Source of Water

It is learnt that the industrial grade make up water will be supplied
at plant boundary after necessary treatment. The required make up water of 830
cum/hr will be supplied at continuous basis.
6.2.3 Plant Water System

Industrial grade make-up water will be stored in a make-up water
reservoir of 3 days capacity within the plant premises. It is envisaged that
adequate storage capacity of 3 days will meet the plant make-up water
requirement to take care eventualities like maintenance of intake pump
house and raw water treatment plant outside plant boundary. This water will
be supplied as make-up to the various consumers of plant water system
through make up water pump house.
In order to conserve water to the maximum possible extent,

independent re-circulating systems with cooling towers, pump houses and
treatment units wherever required will be considered for various units of
the plant.
The plant water requirements for various purposes have been

classified in accordance with its quality as follows:
i) Industrial water will be generally used in the plant water
system as make-up to re-circulating systems, as once-
through usage and for fire-fighting etc.
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ii) Soft water will be used for closed re-circulating systems of

Electric arc furnace, Ladle furnace and Thin Slab Caster
etc.
iii) Potable water will be supplied to meet the drinking and
sanitary needs of the plant personnel and other specific
users.
iv) Waste water and effluent water system.
The schematic water flow diagram for the proposed plant is given
in drawing No. 30691-97A-000-WTS-0001.
The different plant water systems considered in this section, their

respective consumers and broad facilities provided for each sy stem are
indicated in Table 6-5 below, which reflects a conceptual water supply
scheme for plant water systems.
TABLE 6-5 - MAJOR WATER SYSTEMS
Sl.
No. System Main equipment/facilities
1. Make-up water system Make-up water storage reservoir,
pumping system and distribution
pipework.
2. Drinking water system Pumping system, filter, chlorination
unit, overhead tank and distribution
pipework.
3. Water based fire fighting Motor driven and diesel engine driven
system pumps, jockey pumps, storage reservoir of
required capacity, ring main, yard and
shop hydrant system.
4. Soft water system Softening plant with regeneration
system, supply pumps and distribution
pipework.
5. Electric arc furnace (EAF) Pumpings system, cooling towers, heat
water system exchangers, emergency OHT and pipe
work.
6. Ladle furnace (LF) water Pumpings system, cooling towers, heat
system exchangers, emergency OHT and pipe
work.
7. TSCR water system Pumping system, cooling towers, flumes,
scale pit, settling tank, emergency OHT,
pressure filters and pipework.
8. Air separation plant water Pumping system, cooling towers and
system pipework.
9. Miscellaneous services Pumping system, cooling towers and

including compressor pipework.
cooling etc
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6.2.4 Industrial Make-up Water System

From the make-up water reservoir, make-up water will be
supplied to the various consumers of plant water system through make- up
water pump house.
6.2.5 Soft Water System

Soft water will be made available from softening plant where
industrial quality make-up water will be fed for removing hardness. The soft
water thus produced will be distributed as make-up to the various re-
circulating cooling water system.
6.2.6 Electric Arc Furnace Cooling Water System

Independent re-circulating indirect cooling water systems for
both soft and indirect cooling water circuits have been envisaged for the
proposed plants.
For cooling of the roof, shell and other parts of the EAF re -
circulating soft water will be used. For cooling of the soft water indirect
cooling water will be supplied. The re-circulating cooling water system will
consist of pumps, cooling tower overhead expansion tank and a set of plate
heat exchangers.
6.2.7 Ladle Furnace Cooling Water System
Independent re-circulating indirect cooling water systems for both soft and
indirect cooling water circuits have been envisaged for the proposed plants.
For cooling of the roof, high current system and other parts of
the LF re-circulating soft water will be used. For cooling of the soft water
indirect cooling water will be supplied. The re -circulating cooling water
system will consist of pumps, cooling tower overhead expansion tank and a
set of plate heat exchangers.
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6.2.8 Thin Slab Casting and Rolling

For thin slab casting and rolling dedicated soft water, indirect
cooling water, direct cooling and laminar cooling water circuits have been
envisaged.
Soft water will be used for cooling of the mould of the caster,
machine cooling and others part of the caster.
Indirect cooling water will be used for cooling of the soft water
through heat exchanger. Also, indirect cooling water will be used for
cooling of furnace, Hydraulic and lubrication unit. The indirect cooling
water will be cooled in the cooling tower and will be circulated through pump.
Direct cooling water will be used mainly for the roller table and
spray cooling etc. of the caster. Direct cooling water system will comprise of
Scale pit, settling tank, filtration plant, cooling tower, pumping system etc.
Laminar cooling water will be used for laminar cooling process

of the TSCR. Laminar cooling water system will comprise of cooling tower
and pumping system etc.
6.2.9 Drinking and Sanitary Water System

The drinking water system will cater to the water requirements
of plant personnel for drinking and sanitary purposes, central and area
laboratories, canteens and miscellaneous users in the plant. Clarified water
received from the plant make-up water system will be filtered and
chlorinated to convert it into drinking quality water. The drinking water will
be stored in an overhead tank from which drinking water will be supplied to
various consumers.
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6.2.10 Fire-fighting Water System

Water based fire fighting system comprising of fire fighting
pump house, motor driven and diesel engine driven main pumps, jockey
pumps, ring main and fire hydrants at regular interval conforming to The
NFPA norms will be provided to cater to any fire outbreak inside the shops
and in the yard.
6.2.11 Waste Water and Effluent Treatment Management

Waste water generated from the different areas of the plant will
be treated to the desired extent in suitable treatment facilities and recycled
back to the process to attain near zero discharge, facilitating adequate re-use
of water in the respective re-circulating systems and economizing the make-
up water requirement. Blowdown generated from ICW circuit will be used as
make-up to contaminated cooling circuits to the possible extent. Effluent
generated from cooling towers blow down, Soft water plant etc. will be
treated in Central Effluent Treatment Plant (CETP) for re-use in the plant.
Sewage generated from toilet blocks etc will be suitably collected for
treatment in Sewage Treatment Plant and the treated sewage will be
transported to CETP.
6.2.12 Distribution System

Different types of water will be distributed/ circulated
through pipelines of generally mild steel construction. The pipe work will
comprise all necessary pipes, valves, fittings and all other accessories as
required conforming to the relevant standards. In the yard, all water pipework
will be laid overhead.
6.2.13 Rainwater Harvesting

Adequate arrangement will be made for rain water harvesting
by collecting the rain water in the plant area. The rain water will be stored
in a storm water collection reservoir re-circulated after necessary
treatment.
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The list of major equipment for common water facility is

given in Appendix-6-2.
6.3 UTILITY SYSTEM

This Chapter presents various utility systems of the
proposed project.
6.3.1 Fuel System

Natural gas (NG) will be used SMS, TSCR and Lime Calcining
Plant (LCP).
The average hourly requirement of NG is given in Table 6-6.
TABLE 6-6 - AVERAGE HOURLY REQUIREMENT OF NG (NCUM/HR)
Consumers Flow
EAF .. 685
LF .. 2,300
TSCR .. 6,470
LCP .. 1,875
Total .. 11,330
One number NG pressure reducing and metering station h as

been considered along with required facilities. It has been assumed that
NG shall be available at one battery limit near plant boundary .
6.3.2 Plant and Instrument Air System

Plant grade compressed air for general service purpose usage
like pneumatic conveying, bag filter pulsing and dry instrument grade
compressed air for the operation of pneumatic devices for instruments and
controls, pneumatic tools, etc., will be required in each of the production
shops and other ancillaries.
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Requirement of plant grade compressed air and balance

requirement for dry instrument grade compressed air will be met from one
centralised compressed air station of suitable capacity of centrifugal
compressor, along with required nos. air dryers and air receivers of
requisite capacities. Five nos. air compressors (4 working and 1 standby)
of capacity 7,000 Nm3/hr have been envisaged for the project. The
pressure of the available compressed air will be around 7-8 kscg.
6.3.3 Air pollution, Ventilation and Air-conditioning
Air Pollution Control Systems: The scheme proposed for

prevention of air pollution is as follows:
a) Collection of fumes from SMS and mill waste gas system,
deslagging station, argon rinsing station and discharging
them to the atmosphere through stacks after cleaning
through ID fans. Bag filter (Pulse jet type) or ESP will be
used.
b) Removal of dust generated during various process

operations at different areas of shop and material
handling systems.
Ventilation Systems: The ventilation systems proposed to

achieve desired conditions in different areas are as follows:
i) Switchgear rooms, MCC rooms, cable tunnel, cable
basement, oil and hydraulic cellars: Mechanical
ventilation system using fan-filter units for supply and
exhaust fans.
ii) Compressor Building, pump house, transformer rooms:

mechanical ventilation system using exhaust fans.
iii) Production building: natural ventilation by roof

monitors as necessary.
iv) Natural ventilation arrangement will be adopted in most

of the production buildings.
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Air conditioning systems: The air-conditioning systems are

proposed to be designed to maintain the following condition in the spaces
serviced:
a) 25  2 0C dry bulb temperature and 55  5 percent relative
humidity for control rooms, control pulpits, computer
rooms, PLC rooms, laboratory and drive room.
b) To meet the above requirement, chilled water based air

conditioning are envisaged throughout the plant.
Chilled water plants: Vapour compression type chilled

water plant is envisaged to satisfy the air conditioning needs of the aforesaid
rooms. Chilled water inlet and outlet temperature will be maintained at 16 deg
C and 7 deg C respectively. Chilled water plant for the plant will be three
nos. of capacity 700 TR with two working and one stand-by.
6.3.4 Pipework
Overhead yard pipework: The major utility pipeline
services will include the following:
Oxygen, nitrogen, argon, compressed air (plant and dry grade),

natural gas, chilled water (supply and return) etc.
Yard piping network will join the generation point to the

consumption point for all utility services.
The yard portion of the pipe work for all services will be laid on
overhead towers and trestles with a clear height of 6-7 m above finished
ground level (FGL).
Shop pipe work: Shop internal pipe work will generally be

routed in multiple rows through building columns taking support from
building columns and girders.
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6.3.5 Fire protection system

Fire protection systems will be designed as per NFPA,
Bangladesh National Building Code and other relevant code/standards. The
fire protection systems envisaged are indicated below:
i) Automatic high velocity water spray system for the
hydraulic/lubrication room/cellar.
ii) Automatic high velocity water spray/nitrogen injection

based fire protection system for the large oil filled
transformers having capacity of 10 MVA or more and or
oil capacity more than 2000 liters.
iii) Portable/trolley mounted fire extinguishers, such as

CO2, foam and dry chemical powder for the entire plant
premises with in project limit.
The major components of the system will have UL/FM

listing/approval.
The list of major equipment for utility system is given in Appendix-

6-3.
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6.4 INSTRUMENTATION, AUTOMATION, PLANT

COMMUNICATION AND FIRE DETECTION AND ALARM
SYSTEMS
This section describes the instrumentation, automation, plant
communication and fire detection and alarm (FDA) systems proposed for
various process plant units of an integrated steel plant near Chittagong,
Bangladesh. The instrumentation, automation, plant communication and
FDA systems are envisaged to achieve optimum productivity with better
quality in planned and well -co-ordinated manner using state-of-the-art
equipment and facilities.
6.4.1 Instrumentation and Level-1 Automation System

Instrumentation and Level-1 Automation system shall monitor
and control all significant variables in accordance with the process
requirements, provide all operating requirements and necessary sequencing,
interlocking and safety functions including alarms for abnormal conditions.
The Level-1 Automation for the individual plant units shall be performed by
Programmable Logic Controller (PLC) / Distributed Control System (DCS)
based system complete with field mounted instrumentation devices
conforming to the latest technology available.
The Instrumentation and Control system shall be configured

using instruments with state-of-the-art technology from reputed
instrument manufacturing companies.
6.4.1.1 System Architecture

The Instrumentation and Level-1 Automation system shall be
configured considering an Open System Architecture concept for implementing
smooth interoperability among disparate system as well as maximum unit
availability, using an integrated, functionally distributed PLC/DCS based
Instrumentation and Level-1 Automation system.
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For individual process plant units, distributed control

system(DCS)/programmable logic controller (PLC) based Level 1
Automation system with geographically distributed architecture shall be
provided for monitoring, control, sequencing, interlocking and alarm
annunciation as well as plant operation. Various field instruments/
sensors/control devices/drives/other intelligent sub-systems etc. shall
be connected to the automation system over normal hard wire or field bus
systems.
The automation system shall be configured as per the

requirement of the end user, utilizing the latest models of hardware
available in the market with the updated versions of the software as
required for plant operation and data storage.
Mainly the following functions are performed by the Level-1

Automation System:
a) Sequence Control
b) Functions of drives and sequence control
c) Functions of measurement and instrumentation control
d) Operation modes
e) Bus systems and interfaces
f) Visualisation of the operator (HMI) for fault and alarm
display, drive automation and media system status and
monitoring
g) Interfacing with level-2 automation system
h) Interfacing with subsystems/package units
The Level-1 Automation system for major process units shall

have Client-Server architecture with state of the art PLCs, Servers, PC
based Engineering cum Operator stations and PC based Operator Stations
(HMI), printers etc. interconnected over Ethernet network. Servers shall
be hot redundant. All servers/ES/OS shall be interfaced over redundant
Ethernet network. Remote input/output units connecting inputs/outputs
in different plant areas with the above system shall be
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envisaged. Laptop type programming terminal shall be provided for

programming of PLCs.
Ethernet network shall use managed type layer 2 network

switches. Connectivity of the Level-1 automation system with Level-2
automation (where applicable) shall be over ethernet network.
UPS power shall be envisaged for power supply to

Automation and Instrumentation system.
All the process parameters shall be presented to the operator in

graphical/tabulated forms in the HMI stations installed in the control room
suitably located within the plant area from where the operator shall have a view
of the operating plant and all the control facilities shall be made available using
standard key boards and emergency push buttons. Faults and alarms shall be
displayed on the HMI screens. The screen display shall include standard images
with actual data of all measuring and control circuits.
Operation of the plant can be performed through the following

stations:
i) PC based HMI system
ii) Local operator panels located at suitable locations across

the plant. These are mostly required for local manual
operation of individual equipment for maintenance
operations.
The design of control system and related equipment shall adhere

to the principle of "Fail Safe Operation" at all system levels.
The software for the Instrumentation and Level-1 Automation

system shall be simple, user friendly and have the provision of on-line editing
and programme development without interrupting on-line functions and the
same shall support On-line diagnostic features.
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The field mounted instruments and devices such as position

transducer, limit switches, proximity switches, laser sensors, light
barriers, ultrasonic detectors, encoders, transmitters and switches
(pressure/flow/temperature /level), local gauges, control valves, solenoid
actuated valves etc. shall be provided as per the requirement of respective
process units.
Special instruments like analyzers, weighing system,

measurement gauges (e.g., Width gauge, Thickness gauge, Flatness gauge as
applicable) etc. having suitable interface with Control Stations/ PLCs shall
be envisaged as per process requirement.
Special instrumentation sub-systems are provided for each

individual production unit. Interfaces to these systems with PLC basic
automation system shall be provided for transferring of measured values and
binary interlock signals.
The transmitters shall be of SMART type capable of

communicating with the higher level systems using HART or commonly used
field bus protocol. The transmitters will have LCD type configurable local
digital indicator with engineering units.
All field mounted equipment/instruments shall be

weather-proof and dust-tight, suitable for use under ambient conditions
prevalent in the specific plant. Selection of wetted parts of all field mounted
instruments shall be as per process application.
All the instruments located at higher temperature area shall be

provided with necessary protection to withstand the higher temperature
and also necessary protection shall be taken care for the cables at higher
temperature.
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Intrinsically safe/flame proof type field instruments/devices shall

be selected for use in hazardous areas.
Due care shall be taken while selecting the system/services

in order to minimize use of different types of items, reduce spares
inventory and provide easy inter changeability to simplify maintenance as
far as possible.
The Instrumentation and Level 1 Automation System shall

conform to International Standards/norms. Safety features for the plant
operating machineries and operating personnel shall be adequately considered
while designing the systems.
6.4.2 Supervisory Computer and Process Automation

System (Level-2)
Process automation (Level-2) systems have been envisaged for
the following major plant areas:
a) Electric Arc Furnace (EAF)
b) Ladle Furnace (LF)
c) Thin Slab Casting and Rolling (TSCR)
Level-2 automation systems, comprising process models and

technological functions with required software infrastructure for quasi real-
time process control, have been considered to optimise productivity and
improve quality. The systems will also optimise consump tions, besides
handling of PDI, preventive maintenance monitoring, fault logging and
generation of reports. The basic features and facilities of the Level-2
automation systems are described in the following paragraphs.
6.4.2.1 Design Considerations

Systems with client-server architecture based on suitable
operating platforms will be considered, depending on the application. The
servers and clients will be suitably configured and will have features
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to meet the application and process requirement. Redundancy will be

adopted at various levels, depending on the operation philosophy, to
achieve better than 99.95 per cent system availability. The Level -2
systems will be scalable for expansion in future, when required.
The number and type of automation equipment and systems

required will be designed based on the functions in the respective units and
the location of the individual equipment. Common HMI client PCs for both
Level-1 and Level-2 systems may be considered. The Level-2 systems will
be powered from parallel redundant UPS system.
The configuration of the automation systems area-wise will be

structured consisting of networks at different levels with facility for
necessary data exchange, using suitable industry standard communication
protocols. The Level-2 systems will be connected on a fibre-optic based
gigabit Ethernet backbone with TCP/IP.
6.4.2.2 System Features

The servers will preferably have multi-core Xeon processors
or better, on server chipset motherboards with RAID and redundant power
supply. The client PCs will be based on latest Intel based processor with
required speed and features to meet operational demand.
Suitable relational database management systems, user- friendly

graphic visualisation systems and standard and easy -to-use software
development tools, as required, will form the basis of the systems
considered. Various levels of security for users with predefined access rights
to different system facilities and password protection will be incorporated
in the systems.
The computer systems will have diagnostic features to detect

hardware and software faults, which will be displayed and logged with time
stamp. Due consideration will be given for protection of equipment
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against dust, heat, humidity, electro-magnetic interference and

vibration, normally experienced in steel plant environment.
The design of the network systems will be such that it is open

to permit connections of different makes of computers and systems,
through standard protocols of open system interconnect ensuring reliable
and fast data transfer.
6.4.2.3 System Interfaces

The Level-2 automation systems will be interfaced with the
Level-3 system as required, through suitable layer-3 switches. The data
exchange will preferably be through db link in open database connectivity
(ODBC) compliant databases like Oracle or MS SQL server, or by means of
message queuing software.
All real-time data will generally be collected by the Level -2

automation systems from the corresponding Level -1 automation system of
respective plant units, and will be aggregated based on the application
requirement.
6.4.2.3 Other Automation Systems

6.4.2.3.1 Supervisory Control and Data Acquisition (SCADA)
System
SCADA systems have been envisaged for monitoring of data

related to production, distribution and consumption of different utilities and
water systems including monitoring of plant pollution levels as well as
monitoring of the electric power systems in the plant.
The system will be designed for collection, processing,

visualisation and storage of dynamic data and information from util ity
systems, such as fuel gases, industrial gases, steam, compressed air as well
as from various water systems, in a real -time environment. The
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system will also include continuous monitoring, recording and storage of

the plant pollution data, as measured from stack emissions, ambient air in
the surrounding areas, ground water and plant effluent discharge, through
HMI stations located in the environment and occupational health
department of the plant.
The system will comprise PLCs and RTUs, located at strategic

locations, for on-line field data collection and transmission to the SCADA
servers. Support of open industry standard communication protocols such as
Modbus, TCP/IP as well as data exchange by OP C, will be considered, as
required. Suitably level of redundancy shall be considered for high
reliability.
For monitoring of electrical parameters, necessary front-end

devices, such as RTUs for on-line field data collection and transmission to
the SCADA servers, will be considered. The numerical relays will
communicate on IEC protocol over Ethernet TCP/IP network. RTUs and
the substation automation system gateways will communicate with the
SCADA servers on IEC or standard open communication protocol over
TCP/IP network. The energy meters will communicate with the RTUs and
IEDs on Modbus protocol.
6.4.2.4 Production Automation System (Level-3)

A plant wide production automation system is proposed to
include off-line or on-line transaction processing systems as applicable, to
accomplish production, manage the real time aspects of production facilities
and measure and control critical production activities.
The system will be suitably configured and will contain necessary

functions to meet production automation functional requirement such as:
i) Production scheduling and control
ii) Resource management
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iii) Product tracking and genealogy

iv) Order tracking and status monitoring
v) Data collection
vi) Quality management
vii) Performance analysis
The system will be suitably interfaced with individual plant unit

Level 2 systems for exchange of relevant data through industry standard
method.
6.4.3 Plant Communication System

Plant Communication facilities as envisaged are as follows:
a) Closed circuit TV (CCTV) system

b) Telephone system
c) Loudspeaker intercommunication (LSIC) system
d) VHF wireless communication system
The systems will be so designed as to ensure necessary

expansion to meet the future requirement of the plant.
6.4.3.1 Closed Circuit TV (CCTV) System

CCTV system is envisaged in different Plant units for
monitoring of critical operation areas from control rooms. CCTV system
will be IP based and comprise of required nos. of colour IP cameras with
associated accessories, PC based monitors, Server cum recorder,
application software, network switches etc. and independent cable
network made of optical fiber cable, STP/UTP cable s and power cables as
required.
The system will provide facility of viewing, recording and replay of

video feed of cameras. CCTV functionalities like selection and control of cameras,
recording, administration of the system etc will be software based. CCTV system
will work on UPS power.
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6.4.3.2 Telephone System

Telephone connections will be provided at office roo ms, control
rooms/pulpits, electrical rooms and other manned rooms in different
plant units for quick and reliable voice communication. The telephone
communication will be established over different plant units through a
centralized telephone exchange located at a strategic location of the Plant.
The telephone exchange will be IP based and capable to cater to analog
and IP telephones. The exchange will be powered by UPS or rectifier cum
charger based power supply unit with battery back-up.
The analog telephone network will comprise of analog

telephone sets, multipair jelly-filled armoured and unarmoured copper
telephone cable, Distribution Cabinet (DC), Cable Termination (CT) boxes
and associated cabling accessories.
For IP phones, separate IP network comprising of IP phones,

required active and passive network components, STP/UTP cable, fiber
optic cable etc. is envisaged.
The cables will be laid underground, in tunnels/ducts, along

structures/ wall, etc. as applicable.
The external communication facilities like trunk/PSTN/ISDN

lines, direct FAX lines, mobile phones etc. will be arranged by the client from
external service providers.
6.4.3.3 Loudspeaker Inter-communication (LSIC) System

LSIC system is envisaged for two-way communication facilities
amongst various control points and sections in different plant units.
LSIC system will have 100 percent non blocking channels of

communication with basic facilities like point-to-point calling, group calling
and “All Call” announcement. The system will essentially
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comprise of Central control unit (CCU) and required numbers of

desk/wall/column mounting subscriber station interconnected through
an independent cable network. LSIC system will work on UPS power.
6.4.3.4 VHF Wireless Communication System

Wireless communication is envisaged in different plant units
for communication between EOT crane/moving machine operators and
control room/shop floor personnel as well as amongst operation and
maintenance staff. The wireless communication system will comprise of
required numbers of portable handheld walkie-talkies and stationary base
station with rechargeable batteries and other required accessories.
License for allocation of required numbers of frequency for the

Wireless communication system will be obtaine d by the client from the
concerned statutory authority of the country.
6.4.3.5 Fire Detection and Alarm System

Intelligent addressable type microprocessor based fire detection
and alarm system (FDA) is envisaged in different plant units in order to have
early detection and location details in case of possible fire outbreak. FDA
systems will comprise of microprocessor based Fire Alarm Control Panels,
Repeater panels, Administrative workstation, Printer, network switches,
various types of intelligent addre ssable automatic and manual
detectors/devices, audio and visual fire indicators, different types of
addressable input/output interface modules and cable network. FDA
system will employ Class-A type wiring. FDA system will have necessary
UPS/battery back-up.
FDA system will provide necessary interfaces with different

types of fire suppression systems, as applicable, for their automatic actuation
in case of fire. They will have required interlocking with HVAC system,
wherever applicable, for their automatic shut-off in case of fire.
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All the FDA systems will be connected to the central fire station
through interplant FDA network to facilitate central monitoring of the FDA
systems.
Statutory approval from local fire authority, as necessary, will be

obtained by the client.
The list of major equipment for instrumentation, automation, plant

communication and fire detection and alarm system is given in appendix-6-4.
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6.5 PLANT LAYOUT AND TRANSPORT LOGISTICS

This section describes information on the plant layout and
transport logistics for the proposed Integrated Steel Plant (ISP) at Mirsharai,
Chittagong, Bangladesh.
6.5.1 Plant layout

The major considerations which have influenced the
development of the plant general layout are described below:
a) Flow sheet and plant facilities.
b) Disposition of main production units ensuring smooth and

unidirectional flow of materials through the process line.
c) Optimum foot print for plant facilities without
compromising with the smooth operation and plant safety.
Building up common facilities to optimize land utilization.
d) Unidirectional / one way traffic flow as far as possible.
e) ‘Greeneries’ including peripheral green verge.
f) Space provision for future expansion.
g) Health, safety and environment.
Based on the above considerations, the conceptual plant general

layout (30691-97A-00-LTL-0001) has been developed with provision of
space for future expansion. During preparation of layout for future expansion,
contiguous land has been considered diverting the Bamonsundar Canal.
Based on the final configuration of the canal, the final decision on the layout
may be taken in future. Following major plant facilities along with the
ancillary and auxiliary facilities have been considered to accommodate within
the present land area:
a) Raw Material Storage Area
b) Scrap Processing and Storage yard
c) Lime Calcining Plant
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d) Electric Arc Furnace

e) Thin Slab Casting and Rolling
f) Air Separation Plant
g) NG Pressure Reducing Station and Metering Station
h) Compressed Air Station
i) Centralised Chiller Plant
j) Central Store and Workshop
k) MRSS
l) Water facilities
m) Effluent and Sewage treatment plant
n) Slag dump area
o) Administration building-cum-office, Laboratory,
Canteen
p) Car Parking
q) Fire Station and first aid centre
r) Weighbridge
s) Truck Parking
6.5.2 External Transportation

6.5.2.1 Road
At present project site is accessible through a non motorable
bund constructed for MEZ. This bund is further connected to a under
construction single lane road which is also being developed for MEZ. It is
planned to widen this road to two lanes in near future by BEZA. This under
construction road connects to the Abu Torab road which is motorable at
present but in dilapidated condition. For movement of heavy traffic like
trucks/trailers, it is required to strengthen and widen the existing Abu
Torab road. Abu Torab road finally connects to Dhaka Chittagong
Highway.
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Inbound and outbound transportation to and from the ISP will

be predominantly by road. Annual requirement of major raw materials and
finished products and its transport logistic are indicated in Table 6-7 and
6-8.
TABLE 6-7 - MAJOR INCOMING RAW MATERIALS
Gross
Quantity Carrying
Sl. per year Mode of Capacity Vehicle
No. Material (ton) Source transportation of Vehicle per day
Middle
1 Lime Stone 180330 Trailer 40 ton 14
East
Middle
2 Dolomite 81430 East / Truck 40 ton 6
Thailand
3 Ferro Alloy 43000 India Truck 40 ton 4
Middle
4 HBI 794960 East / Trailer 40 ton 61
India
5 Scrap 1587000 Import Trailer 40 ton 121
Total 206
TABLE 6-8 - MAJOR OUTGOING PRODUCTS
Gross
Carrying
Sl. Quantity Mode of Vehicle
Material Destination Capacity
No. per year transportation per day
of Vehicle
(ton)
1 HR Coil 2000000 Domestic Trailer 40 ton 152
2 Slag 311000 Domestic Trailer 40 ton 24
Total 176
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6.5.2.2 Port
Inland water transportation system is well developed in
Chittagong district. Chittagong port is a deep sea port of the country and
is located at distance of 67 km from the site (85 km by sea route). As
informed by Bashundhara group, a jetty is planned to develop by BEZA
for the economic zone as well as Bashundhara Group for receipt of inbound
and dispatch of outbound transportation from Chittagong port to the site
through sea route.
6.5.3 In-plant Transportation

All the in-plant roads will be paved with both side berms and
drains. Roads of adequate width and strength will be provided for catering
inbound and outbound heavy vehicles. Minimum width of main carriageway
is 7m with 1.5m wide berm on both sides. Considering the movement of
substantial no. of heavy freight vehicles, the major freight roads will be of
10.5m wide (3 lane) or 15m wide (4 lane) carriageway with both side berm.
Based on the location of gates, the location of road weigh-bridges has been
decided. Two numbers weighbridges each of 100 ton capacity have been
proposed to be installed at the entry and exit gates.
Movement of raw materials from in-plant stock yard to different

consuming points would mostly be carried out by conveyors.
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6.6 AUXILIARY FACILITIES

6.6.1 Laboratory
It is envisaged that no separate laboratory for pellet testing will
be required. For testing and analysis of the intermediate products produced at
different stages of the process and also for testing of finished products, the
following two laboratories have been envisaged:
a) Steelmaking laboratory
b) Thin slab casting and rolling mill laboratory
These two laboratories will carry out the required tests and
analyses of samples at various stages and will help to ensure that quality
is maintained at every stage of production.
Steelmaking laboratory: This laboratory will be a part of

the steelmelt shop. It will be housed in a single storied building. It will test
the liquid steel during production stage for process control purposes. It
will be divided into the following two sections:
i) Sample preparation section

ii) Instrumental analysis section
The sample preparation section will house equipment for

preparing lollipop samples. Major equipment present in this section are vertical
cutoff machine, lollipop sample cutter, linisher, etc.
The instrumental analysis section will contain the optical

emission spectrometer and the automatic carbon and sulphur analyser. This
section will be air conditioned.
Thin Slab Casting and Rolling mill laboratory: This

laboratory will be present in a suitable location near the rebar mill. It will
be housed in a single storied building. This laboratory will carry out
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the mechanical testing of the rebars produced. The laboratory will be

divided into the following two major sections:
a) Sample preparation section
b) Mechanical testing section
The sample preparation section will prepare samples from the

rebars, suitable for laboratory testing. Major equipment present in this
section are grinder, polisher, mounting press, etc.
The mechanical testing section will carry out various testing like
tensile test, bend test and hardness test of the rebar samples. Major equipment
present in this section are tensile testing machine, rockwell hardness tester,
etc. Samples will be carried manually from the rebar mill to the laboratory.
Metallurgical microscope will be used to study the microstructures of sample
cross section. A part of the laboratory will be air conditioned.
A list of major equipment for laboratories is given in Appendix

6-5.
6.6.2 Repair Shops

To meet up day-to-day routine and periodical maintenance of the
plant equipment as well as regular production of electrode casing required by
the furnace, a repair workshop with the fabrication facilities for regular
production of electrode casing has been envisaged. Heavy and complicated
repair work of plant equipment will be outsourced. The facilities of the
workshop have been categorized into the following sections:
a) Mechanical Repair Section
b) Electrical Repair Section
c) Hydraulic Test Bench
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All the above sections and facilities have been proposed to be

accommodated in a combined structural building provided with a overhead
pendent operated 5-ton capacity EOT crane for handling equipment/items
inside the building.
Mechanical Repair Section: The repair and maintenance

facilities of the plant have been centralised in one building to -cater to the
needs of daily and routine maintenance activities only. Emergency plant
spares of simple nature will also be carried out in the central repair shop.
Major repair works involving critical machining, fabrication and assembly of
heavy and critical job of specialised nature will be outsourced.
The central repair shop will have facilities for mechanical

and electrical repair work including machining, welding and gas cutting
dismantling of sub-assemblies, pressing and fitting work etc. Suitable
handling facilities will be provided.
The mechanical repair section will have minimum machining

facilities including turning, key-way cutting, tools grinding, drilling,
punching, cutting of round and square materials etc. Equipment for
fabrication of electrode casing including sheet bending and sheeting
shearing machine etc. have been considered.
The activity of this section has been planned to carry out

dismantling of sub-assemblies, weld reclamation of worn out components,
replacing damaged parts of equipment, repairing and refitting work,
manufacturing of small spares etc. However, equipment in this section
have been so selected that the workshop will be able to attend preventive
maintenance, break-down maintenance and emergency repair as and when
required by the plant.
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Electrical Repair Section: Repair section for electrical

equipment will be located at one side of the building adjacent to mechanical
repair section. In this section, the facilities for carrying out routine
overhauling and minor repairing of electrical equipment will be provided.
This section will also have the limited facilities for minor repairing and
testing of small electrical motors including facilities for de - dusting, bearing
changing, coil winding, coil replacement etc. Winding of big electric motors
followed by testing will be outsourced.
Hydraulic Test Bench: Hydraulic test bench in the repair

shop area is envisaged for testing of various equipment and components of
the hydraulic systems and circuits of all the plant machineries and
installation. In addition, facilities required for ‘Cleanliness testing of
hydraulic oil’ have been considered along with the hydraulic oil cleanliness
test bench.
6.6.3 Central Stores

In order to ensure uninterrupted production in the plant and to
maintain proper inventory, adequate stock of slow and fast moving spares,
wearing items, bulk materials, hardware, consumables etc are planned to
be maintained in the store.
The store building will be equipped with large, medium and

small storage racks, multi/two-tier racks, pallets, platform type weighing
scale etc. Large spares of heavier weight will be kept on the ground floor.
For storage of spare parts for SMS facilities, refractory, spare

parts for rolling mill and day-to-day requirement of hand-pick items i.e.
electrodes, electrical and electronics items, nuts and bolts, chain sprocket
etc., it is envisaged that a multi-storied building for central store to combat
the space.
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Air-conditioned strong room will be provided for sensitive

instruments and for valuable spares. Fork-lift trucks will be used for handling
materials inside the store. Space for store keeper, materials receipt and issue
etc will be provided suitably.
Refractory store: A refractory store has been envisaged for

storing various refractory including insulating bricks, imported bricks etc.
Unloading and loading platforms will be provided along the length of the
building for easy loading and unloading of materials. Forklifts and pallet
trucks will be provided for handling and stacking of refractory.
Ferro-alloy Store: For storing of various ferro-alloys, a

separate building of suitable size has been envisage d in the near vicinity of
steelmelt shop. Ferro-alloys will be received by road trucks in bags/boxes.
Suitable overhead crane will be provided for handling ferro- alloys inside the
store.
The list of major equipment and facilities for mechanical,

electrical and auto repair shop and central stores is presented in Appendix
6-6.
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BASHUNDHARA GROUP
7 - ENVIRONMENTAL POLLUTION POTENTIAL AND

MITIGATION MEASURES
This chapter outlines of the principal types of pollution and also

highlights the proposed environmental pollution mitigation measures that
would form an integral part of the 2 mtpy flat steel project.
7.1 POLLUTION POTENTIAL

Various process operations would generate particulate dusts,
oxides of sulphur and nitrogen and carbon dioxide to the air environment.
Water pollution would arise mainly due to generation of waste

water from various process units and plant sanitary effluent contaminated
with total suspended solids (TSS), total dissolved solids (TDS) and oil and
grease.
The land environment may get disturbed due to dumping of

various solid wastes like EAF slag, LF slag, scales, refractory debris, sludges
etc. unless maximum utilization/ recycling of the solid wastes are planned.
7.2 PROPOSED MITIGATION MEASURES

In consideration of the pollution potential visualized for the
proposed expansion, the following mitigation schemes are envisaged in order
to control environmental pollution within the permissible norms and keep
the environment fairly clean.
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BASHUNDHARA GROUP
7 - Environmental Pollution Potential and Mitigation Measures (cont’d)
7.2.1 Air Pollution Mitigation

Raw material handling: Fugitive dust emissions generated
from the handling and stockpiling of raw material (except lime) in open
stockyards would be controlled by water sprinkling at regular intervals. All
closed zone working areas such as raw materials handling zone, conveyor
transfer points, dust generation points at screen would be provided with
multiple dust extraction (DE) systems) at several emission points to control
the fugitive dust emissions. DE system shall consist of suction hood followed
by bag filter, ducts, extraction fans and stack of appropriate height.
Lime/Dolomite Calcining Plant: The emissions arising due

the fuel used in lime calcining plant would be collected and taken through a bag
filter to separate out the lime/dolo fines. The kilns in the calcining plant
and other dust generation areas would be provided with separate DE systems,
complete with bag filters and stack of adequate height to vent the flue gas.
EAF and Ladle Furnace: The primary emissions of EAF and LF

would be collected by fume extraction (FE) devices. Dust laden fumes would be
indirectly cooled and cleaned through a bag filter for separation of particulates
and the clean gas would be vented into the atmosphere through a tall stack
of adequate height. The secondary emissions would be controlled through
canopy hood extraction, which would be integrated with the main system to
clean the fugitive emissions during charging and tapping operations. The gas
cleaning system would be complete with water cooled duct, fume and gas cooler,
bag house, ID fan and stack of appropriate height.
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BASHUNDHARA GROUP
Caster Area: The water required for cooling the hot cast thin
slabs would generate hot fumes comprising mainly water vapour and
suspended particulates. The thin slab casting area would be provided with
adequate ventilation in order to have the water vapour properly dispersed.
7.2.2 Work-zone Pollution Mitigation

The work zone pollution would be mostly fugitive dust, heat and
noise. The fugitive dust emission would be controlled by dust suppression and
DE system as described earlier.
Noise arising from the mechanical machineries like crushers,

screens, compressors, blowers, pumps etc cannot be ruled out. Such noise-
prone equipment would be installed in a separate housing so as to enhance
the noise attenuation. Isolation of the operational staff from the high noise
prone zone will be adopted by providing noise proof control room so that
they are not exposed to the noise level exceeding the allowable limit.
7.2.3 Water Pollution Mitigation

The plant would operate on the basis of near Zero Effluent
Discharge principle.
The entire quantity of process effluent including cooling tower

blowdowns would be treated in CETP for use as plant make up water or used
for low end purposes like dust suppression, slag quenching, greenbelt
maintenance etc. after primary treatment.
Effluent from TSCR would be taken to settling pits for separation

of scale and oil and grease before further treatment in CETP.
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BASHUNDHARA GROUP
The plant sanitary waste water including canteen effluent would be

treated in a sewage treatment plant for separation of floating oil and reduction
of BOD level and the treated effluent would be partly used for plant greeneries,
road washing etc. and the rest would be treated in CETP for reuse.
7.2.4 Solid Waste Generation and Disposal

There would be a number of solid by-products like EAF and LF slag,
caster scale and sludge, refractory debris, flue dusts etc. generated from the
proposed steel plant. Scales from TSCR, flue dusts and EAF and LF slag would
be transferred to authorized agencies for reutilization or safe disposal. Other
solid wastes would be stored temporarily in the earmarked area within the plant
boundary before transfer to authorized agencies.
7.2.5 Plant Greenbelt and Landscaping

During development of plant general layout, as per stipulation,
33 percent of the plant area would be kept reserved for peripheral greenbelt,
gardening and tree plantations at the site. This would not only prevent the
fugitive dust emissions but also improve the peripheral appearance of the plant
from aesthetics point of view. Unpaved areas, if any, within the plant
boundary would be provided with grass cover.
7.2.6 Other Energy Saving Measures

Energy efficient LED lighting would be used to the extent
possible. Solar power for lighting would be explored to reduce energy
consumption.
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8 - ORGANISATION AND MANPOWER
This chapter deals with the preliminary estimates of

manpower requirement for the proposed plant.
Well planned human resource utilisation, with defined

responsibilities and authorities, is the basic requirement of efficient
functioning of any organisation. This chapter deals with the proposed
organisation structure and preliminary estimates of manpower requirement
based on the equipment and facilities for the proposed plant.
The objective of manpower estimate is primarily to derive the

labour component of production cost and to indicate the order of manpower
requirement. However, it will be necessary to review the manpower
requirements at a later date on the basis of the final layout, equipment and
facilities installed, degree of automation, actual mode of operation practice
and management policies adopted.
8.1 ORGANISATION STRUCTURE

The organisation structure for the plant has been developed
indicating the major functional divisions of the organisation and the
principal executives responsible for functions of each division . A
preliminary management organisation structure of the plant is in dicated in
Fig.8-1 on the next page. However, the proposed organisation structure
may have to be reviewed time-to-time and modified accordingly based on the
changing needs of the plant.
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8 - Organisation and Manpower (cont’d)
FIG. 8-3 - PROPOSED ORGANISATION STRUCTURE
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BASHUNDHARA GROUP
8.1.1 Major Functions

The Board of Directors formulates the policy and exercises overall
control of the organisation through the General Manager who is the full time
chief executive of the proposed plant.
In order to enable efficient control of the General Manager

over the entire organisation, the management functions are grouped into
two major divisions, namely administration and works. Over and above,
there will be a Company Secretary who will directly report to General
Manager and look after company matters.
8.1.2 Major Functions of Works Division

The works division will be under the control of Works
Manager who will be responsible for all the plant operations including
planning, production, quality, costs, maintenance and services,
environment and safety. He will co-ordinate with commercial department
in regard to inventory control and procurement of raw materials, spares,
consumables, scheduling of production and despatch of finished products.
He will also co-ordinate with finance and cost department in matters
relating to plant budget and costs.
For carrying out his functions, the Works Manager will be

assisted by two deputy general managers, one for production and other for
services. Managers of Steel Making and TSCR will report to deput y general
manager production and a manager of service will report to deputy general
manager services. Moreover, production planning and control and safety and
environment management and a chief QA and Lab will be directly under his
control.
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8.2 BASIS OF MANPOWER ESTIMATE

The manpower estimates have been made taking into
consideration the following aspects:
a) The proposed organisation structure, production processes

involved, layout, equipment with its degree of automation,
jobs to be outsourced and mode of operation practice.
b) Additional manpower over and above the daily

requirement at the rate of twenty five per cent and ten per
cent is provided for departments/sections working seven
days a week and six days a week respectively to cater
weekly offs, holidays, leave, absenteeism etc.
c) All repairs of capital nature and heavy maintenance jobs

including civil and telecommunication maintenance etc. will
be done by engaging specialised external agencies.
d) The operation staff will be required to carry out routine
checking of their own plant and equipment as well as minor
repairs and adjustments in addition to plant operation.
A separate maintenance section for each major department

is considered to be provided directly under the head of
department to take care of preventive maintenance, running
shift maintenance and minor repairs. During equipment
shut-down for maintenance, the operation personnel will
assist the maintenance personnel in carrying out the
maintenance tasks to maximise the utilisation of manpower.
e) The maintenance personnel will have multi-disciplinary

skills; for example, mechanic will be able to perform simple
machining, welding and gas cutting. Implementation of such
concept will increase labour productivity of the plant.
f) Implementation of computer systems including local area

network (LAN) with standard user friendly software’s in
the field of financial management, personnel management,
materials management, order scheduling, sales and
marketing management, management information systems
(MIS), production planning and
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control, maintenance and spares planning, utility and

energy management etc. has been considered to reduce
manpower requirement.
g) Some of the services as given below have been considered to

be out-sourced for which no manpower has been considered.
i) Canteen and catering services
ii) Security services and major fire-fighting services.
iii) Horticulture and landscaping services
iv) Sanitary and house-keeping services
v) All road transport services for materials and

personnel movement.
vi) Disposal of wastes and effluents generated from

various plant units.
vii) Scrap handling, processing and storage, scale
removal.
viii) Heavy maintenance and capital repair including

plant civil maintenance and central repair shop.
ix) Plant telecommunication maintenance
x) Maintenance and repair of automation equipment,

computers including its peripherals and any other
related services.
xi) Maintenance of air conditioning and ventilation

equipment.
xii) Loading and unloading of materials, road and

permanent way maintenance.
8.2.1 Total Manpower Requirement

Based on the above, it is estimated that the total manpower
requirement for the plant after completion will be about 588 persons on payroll.
The summary of manpower is given in Table 8-1 on the next page.
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TABLE 8-1 - SUMMARY OF MANPOWER
Shifts Total Total

Department General I II III per on
weekday payroll
A. Administration
Division 20 - - - 20 20
B. Works division:
B1 Works management 10 - - - 10 10
.
B2 Steelmaking and
calcining plant 16 57 58 57 188 234
.
B3 Rolling mill 8 46 46 41 141 169
.
B4 Utility and services 18 28 28 28 102 129
.
B5 Quality assurance 2 6 6 6 20 26
.
Total (B) 54 137 138 132 461 568
TOTAL (A+B) 74 137 138 132 481 588
8.3 TRAINING
It is presumed that the personnel in the administration
departments having requisite qualification and experience will be
available from the local market and they do not normal ly require any
specific training. It is expected that their recruitment will be progressive
depending upon the requirement during the construction period and will
be completed before commissioning of the plant.
It is presumed that most of the key positions in operation and

maintenance of the proposed plant at different categories will be manned
by the qualified persons having experience in similar fields. However,
depending on the type of equipment/facilities along with the degree of
automation contemplated, the operation and maintenance personnel of the
plant so recruited, will require specific need based training which is
proposed to be carried out at the supplier premises and also on site by the
respective equipment supplier during equipment erection, start up and
commissioning of different plant units. Besides, training in similar plants
and onsite training by experts may be arranged.
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9 - PLANT CONSTRUCTION AND IMPLEMENTATION SCHEDULE
This chapter describes the volume and type of construction work,

requirement and availability of various construction materials, deployment
of various construction equipment and manpower, construction facilities
such as water, power, construction and storage yards, offices, site fabrication
yard, roads, drainage etc. requ ired for construction work for setting up the
steel plant including common facilities like power, water, utility system etc.
The strategy to be adopted for implementation of the project has been
described in this chapter.
9.1 VOLUME OF CONSTRUCTION WORK

The estimated volume of major items of work involved in the
construction of the plant facilities are indicated in Table 9-1. The quantities
are only indicative and the actual quantities may vary during engineering
stage, depending upon the selected equipment, finalised building sizes, shop
layouts, actual soil conditions etc.
TABLE 9-1 – ESTIMATED VOLUME OF MAJOR ITEMS OF

CONSTRUCTION
Sl. Unit Quantity

Item
No.
1 Piling work nos. 8,997
(1000 mm dia, 44 m length)
2 Concrete of all grades cu m 201,840
3 Structural steel work(1) ton 39.500
4 Roof and side sheeting sq m 222,100
Note:
(1) Estimated volume of structural steelwork is inclusive of
steel for inserts and embedment for civil work.
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BASHUNDHARA GROUP
9 - Plant Construction and Implementation Schedule (cont’d)
9.2 REQUIREMENT OF CONSTRUCTION MATERIALS

The approximate requirements of major construction materials
have been estimated based on the volume of work and is indicated in Table
9-2.
TABLE 9-2 – REQUIREMENT OF MAJOR CONSTRUCTION MATERIALS
Sl. Estimated
Item Unit
No. quantity
1. Cement ton 256,440(1)
2. Coarse aggregates cu m 461,600(1)
3. Fine aggregates cu m 338,500(1)
4. Reinforcing steel ton 43,600(1)
5. Structural steel ton 43,500

Roof and side
6. sq m 266,520
sheeting
Note:
(1) The quantities given above under Sl. Nos. 1 to 4 are inclusive
of piling quantities
9.3 SOURCING OF CONSTRUCTION MATERIALS

Following procedures are envisaged for sourcing of major
construction materials for all civil work. It is preferable to source major
construction materials and suppliers locally to avoid delay in procurement.
It is envisaged that cement, reinforcing steel and structural steel

materials, roof and side sheets shall be procured and issued to the contractors
free of cost or at agreed recovery rates. Advance action may be initiated so
that these materials are procured in adequate quantity before
commencement of the work at site. In case of turnkey contractors,
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supply of these items will be decided on mutual agreements between B G and

concerned agencies. All other construction materials shall be procured by
the contractors and stacked in respective construction yard/batching plant
area with storage provision of at least fifteen (15) days. Keeping in view
large quantum of construction materials that will be needed during
construction (monthly peak requirement) proper planning needs to be done
by various executing agencies for arranging procurement of these materials
including consumables in a phased manner.
9.3.1 Coarse Aggregates

Considering the total quantity requirement, the contractor
shall carry out survey in the local areas for identification of sources and
ascertaining the availability. During monsoons, there may be a
crisis/shortfall for procurement of coarse and fine aggregates. Civil
contractors shall plan well in advance to procure and stack the coarse
aggregates to tackle the situation during the execution of work.
9.3.2 Fine Aggregates

The contractors shall carry out survey to determine the sources
of sand considering the material’s quality and its suitability for
construction work. They shall plan well in advance to procure and stack the
sand for building buffer stock, especially for the rainy seasons, enabling to
tackle any crisis during the execution of work.
9.3.3 Other Construction Materials

Considering other various on-going projects in the area,
availability of other construction materials for this project will not be a
problem.
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9.4 PRE-CONSTRUCTION ACTIVITIES

Pre-construction activities/site preparatory work is a
prerequisite before commencement of major construction work of any project.
The following pre-construction activities are envisaged for

this project:
9.4.1 Survey and Soil Investigation Work

It is assumed that preliminary topographical survey and soil
investigation report of the proposed site is available with BG which may be
shared with the prospective contractors for their reference. During
engineering, required soil investigation work has to be carried out. However, it
shall be the responsibility of the Contractor to verify the existing survey/soil
investigation reports and carry out confirmatory and detailed survey and
soil investigation before embarking on the construction work.
9.4.2 Construction Facilities

Preparatory work generally include site leveling and establishment
of construction facilities. Also, some basic infrastructure has to be
developed/augmented to prepare the area for construction work. This may
include the following:
a) Construction of boundary wall
b) Arrangement of water for construction and drinking
c) Arrangement of construction power and lighting
system
d) Development of fabrication and construction yards and
stores
e) Development of construction office and field offices
etc.
f) Development of construction roads and drainage
system
g) Construction of peripheral road inside plant boundary
h) Dismantling and relocation work (if required)
i) External rail and road linkages
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BASHUNDHARA GROUP
9.4.3 Construction Water, Power and Lighting System

9.4.3.1 Construction Water
Continuous and reliable supply of water is essential for the
project where large volume of construction activities envisaged like
concreting, roads, drainages etc. Water supply facilities for both drinking
and sanitary requirement of construction workers have to be arranged.
Construction water for the project shall be made available by BG at one
point if there is an existing system at site. The contractors will make their
own arrangements for connection, distribution and storage of construction
water at their construction sites depending on their requirement. It is also
envisaged that drinking water shall be made available by BG from their
existing facilities at site, if any. Contractors shall make special
arrangements for dispensing and storing the drinking water for use of their
workers during construction stage. Howe ver, if there is no existing
drinking and construction water facility at site, the contractor will have to
arrange their own source of construction water and drinking water during
construction stage.
9.4.3.2 Construction Power

Construction power for the project shall be provided by BG
from a common take over point. Necessary construction power sub - station
(CPSS) will be established in various construction zones as well as for
construction yards. Silent DG sets may be kept at standby to provide
emergency power during construction. For power distribution, 1100V
grade power cable may be used for connectivity between main 415V, 3
phase 3 wire emergency DG distribution board to remote junction box at
site. The construction power system shall be properly earthed. Contractors
can avail power supply from these junction boxes.
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BASHUNDHARA GROUP
Area and road lighting during construction period: The

lighting requirement during construction period can be generally classified
into the following three categories:
i) Actual construction site as well as contractors’ storage
and fabrication yard lighting.
ii) Construction road and general area lighting including

security purpose lighting.
iii) Lighting of permanent auxiliary facilities and ancillary and

buildings which will be constructed in advance to serve
during the construction period.
For area and road lighting during construction phase it is assumed

that construction power will be made available prior to commencement of
foundation work for main plant construction.
9.4.3.3 Construction and storage yards

Adequate construction and storage yards will be required
during construction phase based on the required volume of construction
work. Construction yards will be required for setting up of batching plants,
reinforcement rod bending and cutting facilities. Similarly, storage yards
will be required to store construction materials like cement, sand, stone
aggregates, reinforcement steel bars, prefabricated structural materials
and equipment.
Due to space constraint for setting up of adequate construction,

fabrication and storage yards, sequential construction planning may be
adopted for better utilization of available space. Also, it is envisaged that
structural materials shall be primarily fabricated outside plant premises,
adhering to the transportation logistics and limitations. Fabricated structural
materials from the fabrication yard/shop fabrication will be received and
stacked near respective construction zones, where areas will be specifically
earmarked for such materials. This will minimise double handling.
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BASHUNDHARA GROUP
9.4.3.4 Construction roads and drainage

The permanent roads planned for the project will be used initially
as construction roads. Initially, the road will be constructed up to wet mix
macadam (WMM) and will be used for the purpose of construction. The final
topping course will be laid when the project is nearing completion.
Thereafter, these roads will be used as the plant’s permanent roads.
Construction of the plant’s storm water drainage system will be
simultaneously taken up along with road construction.
9.5 CIVIL AND STRUCTURAL WORK

The land required for the project will be made available by BG
prior to construction. Considering the volume of construction work
involved and availability of a limited construction period, it would be
necessary to engage adequate number of experienced and resourceful
contractors for carrying out the work at site in various plant facilities
simultaneously. Further, it would be necessary to carry out the
construction work in a mechanised manner by deployment of excavators,
ready mix concrete plant, transit mixer, pump for concrete work; welding,
drilling and grinding equipment etc. for structural work and high capacity
mobile cranes for erection of structures so that civil and structural
construction work can be completed within stipulated time.
9.5.1 Civil Work

Civil work will generally include building foundations,
equipment foundations, shop flooring, auxiliary and ancillary buildings,
roads, drainage, sewerage etc. Locally available resourceful contractors may
be engaged for ancillary and other infrastructure work.
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BASHUNDHARA GROUP
9.5.2 Structural Steel and Sheeting Work

Structural steelwork will cover fabrication, erection, painting,
sheeting and cladding work for the plant building structures including
auxiliary facilities and ancillary buildings, yard facilities etc. Owing to
limitation of space for establishment of fabrication yard, it is envisaged that
structural materials shall be primarily fabricated outside plant premises.
9.6 EQUIPMENT MANUFACTURE AND DELIVERY

It is envisaged that certified equipment data required for
design of equipment foundations will be made available by equipment
suppliers within a reasonable time from the date of placement of firm
orders for plant and equipment on the respective suppl iers. Prior to
delivery of process equipment, appropriate facilities have to be
constructed at site for secure storage of these equipment.
Delivery of equipment at site shall be according to the site

execution sequence of the project. For various plant and equipment,
necessary specifications will be prepared for selection of suppliers and
erectors towards placement of orders to match the planned commissioning
of the plant units. The placement of orders and delivery schedule of
equipment for power, water and utility systems and other auxiliary facilities
shall have to be planned so that these facilities can be erected and
commissioned in time to match the schedule for commissioning of the plant.
Prior to delivery of process equipment, appropriate facilities have to be
constructed at site for secure storage of these equipment.
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BASHUNDHARA GROUP
9.7 EQUIPMENT ERECTION

Erection of equipment for the plant facilities will commence after
availability of civil and structural fronts as well as receipt of equipment at the
site to match the sequence of erection. The installation of power, water and
utility systems will also be taken up simultaneously.
Order for equipment erection will be placed on shortlisted

resourceful and experienced contractors as far as possible to ensure quality
of job and completion of work as scheduled.
Erection of the equipment for different plant facilities shall be

completed in a sequential manner to match the commissioning schedule of
plant.
9.8 EXTERNAL FACILITIES

Off-site facilities such as external water supply, power
transmission line, railway and road linkage for transportation facilities etc.,
will have to be established to cater to the requirements of the plant matching
with the overall implementation schedule. It is expected that these facilities
will be installed prior to the commencement of trial run and commissioning
of the plant facilities.
9.9 TRIAL RUN AND COMMISSIONING

After completion of equipment erection, cold trial activities of
various units will be taken up sequentially. It is envisaged that the t rial run
and commissioning is to be conducted utilizing the permanent plant power,
water and utility systems. Hence power, water and utility system has to be
established prior to trial run and commissioning of the respective
production units. The trial run and commissioning will include cold run,
hot run, followed by performance guarantee tests (PGT). Commercial
production shall start after completion of all commissioning activities.
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BASHUNDHARA GROUP
9.10 IMPLEMENTATION STRATEGY

The modes of implementation strategy to be adopted for
execution of the project is to be developed based on the following major
considerations:
a) Volume and location of construction work.
b) Quantum of jobs available from other on-going/

planned projects with prospective suppliers and executing
agencies during actual awarding of various packages.
c) Availability of qualified equipment suppliers.
d) Availability of the suitable executing agencies for civil,

structural and equipment erection work.
e) Availability of skilled and unskilled labourers.
f) Time frame envisaged for various works units, within

the overall project schedule.
9.10.1 Possible Mode of Implementation

Taking into account the above considerations, the possible
modes of implementation can broadly be divided in three categories namely:
a) Turnkey
b) Discrete turnkey
c) Non-turnkey
The mode of implementation to be actually adopted for

execution of the project will depend on the resource availability at that time,
considering the various on-going and proposed projects in the region during
the probable time schedule for implementation of this project. Actual mode
of implementation strategy to be followed against various packages will be at
the discretion of BG at the time of actual project execution.
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9.11 SAFETY REQUIREMENTS DURING PROJECT

CONSTRUCTION
The plant will require the involvement of a large number of
construction workers, supervisory staff, managers, operators of
construction machineries, etc. The plant, during its construction, will need
high in-built safety requirements to avoid injury to workers involved in
various activities. It will be of utmost importance that safety of all
personnel be ensured, during construction and erection work of the plant.
9.11.1 Health and Safety Policy

A health and safety policy, outlining vision, purpose and goals
in consonance with international safety norms along with BG’s own safety
policy, will need to be drawn up at the beginning itself. This will include
personal protective equipment, transportation, storage, usage and disposal
of hazardous materials, construction traffic, etc. This policy will address
and safeguard the health and safety concerns of personnel associated with
construction of the plant, as well as operators and maintenance personnel
associated with the running of various construction equipment and
commissioning of the production units.
The health and safety policy will also frame ‘safety rules’ for
construction work that will be undertaken at site, prior to commencement
of any work related to the project. These rules will have to be finalised
considering international practice; and in cognisance of the prevalent local
laws and statutory regulations as provided for in the various industrial acts.
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9.12 IMPLEMENTATION SCHEDULE

The section briefly describes the overall implementation
schedule for integrated steel plant, indicating the time required to complete
the major activities, namely engineering, procurement of equipment,
construction, erection, test, trial run and commissioning of the major plant
facilities along with external and internal facilities in the form of bar charts.
The implementation schedule is presented in Appendix 9-1.
It is envisaged that the project will be completed in discrete turnkey

mode within a period of thirty (30) months from “Go Ahead”.
The schedule has been developed on the basis of the estimated

quantum of work, expected delivery and installation period of equipment and
the need to commission the plant facility in shortest possible time. Schedule
commissioning of the newly installed facilities of the plant, can only be
achieved if construction, delivery and erection periods as shown in the bar
chart, are met by respective suppliers and contractors.
Completion of major activities from “Go Ahead” are as

follows:
i) Basic engineering : 10 months
ii) Procurement and Contracting : 14 months
iii) Detail engineering : 21 months
iv) Manufacturing and Delivery : 24 months
v) Erection and Construction : 28 months
vi) Pre-commissioning and : 30 months
Commissioning
9-12
BASHUNDHARA GROUP
10 - COST AND PROFITABILITY
This chapter deals with estimations of capital cost, annual

manufacturing expenses and financial analysis for the project. The estimates
are based on prevailing price levels, taxes and duties.
The cost estimates are based on the data/information

available with the CONSULTING ENGINEERS for similar projects.
The following exchange rates have been considered for the

study:
1 Euro = BDT.94.39
1 USD = BDT.83.09
1 INR = BDT. 1.17
10.1 CAPITAL COST ESTIMATE

The capital cost estimate of the project is presented under
the following heads:
a) Plant cost
b) Margin money for working capital
c) Preliminary and Pre-operative expenses
d) Interest during construction
10.1.1 Plant Cost

The plant cost includes cost of land and land development,
infrastructure cost, civil work and structural steelwork, plant and
equipment including the environment protection cost, erection and
commissioning. Provision for design, engineering and administration
during construction and contingency are also included in the plant cost.
10-1
BASHUNDHARA GROUP
10 - Cost and Profitability (cont’d)
The brief descriptions of the plant cost components are given

below:
a) Cost of procurement of 200 acres of land has been
considered. Land development activities are also
considered in the cost. Costs for boundary wall and
drainage system have also been included.
b) The civil work includes building and equipment

foundation, masonry and reinforced concrete for factory
buildings, trenches, basement, ancillary buildings etc. with
necessary waterproofing treatment and road system
including main plant road and roads connecting different
facilites. The concrete quantities are based on preliminary
design and available soil information.
c) The structural work includes structural steelwork,

cladding with translucent sheets and their erection. The
steelwork quantities are also estimated with preliminary
design, drawings and standard practice.
d) The civil and structural quantities may vary depending

upon the final plant layout to be developed during detail
engineering stage.
e) The costs for plant and equipment are mostly estimated on

analogous basis with information available with
CONSULTING ENGINEERS. Cost of capital spares and
technological structures is also included in the plant and
equipment cost.
f) Cost towards design, engineering and administration

during construction is estimated at 5 per cent on a
normative basis on the supply price of plant and
equipment including civil work and structural steelwork,
erection and enabling work.
g) The contingency provision is made at 5 per cent on a

normative basis to cover the cost of unforeseen items. This
contingency provision does not provide for any forward
escalation and exchange rate variation.
10.1.2 Margin Money for Working Capital

Twenty five per cent of the estimated working capital for the first
year of operation has been capitalised as margin money.
10-2
BASHUNDHARA GROUP
10.1.3 Preliminary and Pre-operative Expenses

A provision is made for preliminary expenses towards capital
issue and various studies including EIA report. A provision is also made for
pre-operative expenses and start-up expenses as up-front fee payable on
borrowing from financial institutions/bank.
10.1.4 Interest during Construction

Interest during construction has been calculated on gross of
Input Tax basis and based on the following assumptions:
a) Debt-equity ratio of 70:30.

b) Cost of debt for at 10.0 per cent per year.
c) Year-wise allocation of fund as per implementation
schedule.
d) Drawal of fund in the ratio of Debt: Equity.
10.1.5 Capital Cost Estimate

Based on the above considerations, estimated capital cost of
the project is given below in Table 10-1:
TABLE 10-1 - ESTIMATED CAPITAL COST OF THE PROJECT
Sl.
No. Description Mill BDT
A Plant Cost
1. Land and land development 2,228.2
2. Civil and structural steelwork 16,390.9
3. Plant and Equipment as erected 37,294.9
4. Construction facilities 100.0
Design, Engineering and Administration during
5. 2,555.4
construction
6. Contingency 2,928.5
Total (A) 61,497.9
B Other Costs
1. Margin Money for working capital 3,902.2
2. Preliminary and preoperative expenses 1,012.8
3. Interest During Construction 4,064.0
Total (B) 8,979.0
C Capital Cost (A+B) 70,476.9
10-3
BASHUNDHARA GROUP
10.2 ANNUAL MANUFACTURING EXPENSES

The annual manufacturing expenses have been worked out
under the following three heads:
a) Input materials
b) Conversion costs
c) Overheads
10.2.1 Input Materials

The annual cost of input materials in the first year of stabilised
operation, i.e. 5 th year of operation have been computed taking into account
the annual gross requirements and their corresponding unit prices as shown
in Table 10-2.
TABLE 10-2 - TOTAL COST OF INPUT MATERIAL
Net Purchased Purchased

Description Amount
quantity quantity price
tons/year tons/year BDT/ton Mill BDT
HBI 694,000 694,000 31,800 22,069.2
Steel Scrap 1,618,304 1,587,000 33,000 52,371.0
Coal Fines 57,288 64,239 6,300 404.7
Limestone 173,186 180,327 2,300 414.8
Dolomite 78,199 81,423 2,400 195.4
HC FeMn 20,460 20,460 120,200 2,459.3
SiMn 12,276 12,276 111,600 1,370.0
FeSi 10,230 10,230 148,900 1,523.2
Total 80,807.6
10.2.2 Conversion Cost

Salaries and wages: The manpower in payroll for works
and administration has been estimated at about 588 persons. Out of this,
works manpower is 558 numbers and Administration manpower is
30 numbers. The average man-year cost (including all benefits) for
executives and non-executives have been considered at BDT.500,000 as per
the information received from BG. The annual cost towards salaries
10-4
BASHUNDHARA GROUP
and wages have been worked out based on these basis. Provision has
also been kept for outsourced manpower.
Other conversion cost: Other conversion cost includes cost

of power, fuel, industrial gases, make-up water, Consumable, refractories
and repair and maintenance etc.
The annual requirement of electrical energy will be purchased

from the state grid at an average unit price of BDT.7.95 per kWh. The
cost of contract demand charge of BDT.40/KW /month with state grid is
also included in the estimate.
Purchased Natural Gas will be sourced from market at unit rates

of 9.62 BDT/Scum.
Annual requirement of Oxygen, nitrogen and argon will be met

from captive Air separation unit.
Cost of make-up water is estimated at BDT 6 per cu m.
Annual provision towards repair and maintenance has been made

at 2.5 per cent of the landed cost of plant and equipment.
10.2.3 Overheads
This includes salaries for administrative manpower and cost
towards insurance on fixed assets, office expenses and sales expenses.
10.2.4 Estimated Annual Manufacturing Expenses

Based on the above considerations, the annual manufacturing
expenses in the year of stabilised operation are given in Table 10-3 on the
next page.
10-5
BASHUNDHARA GROUP
TABLE 10-3 - ANNUAL MANUFACTURING EXPENSES
Sl.
No. Description Unit Quantity Rate Amount
BDT Mill BDT
A Total input material - - - 80,807.6
B Cost above materials

i) Labour and supervision Nos. 558 500,000 279.3
ii) Contract labour - - - 29.4
iii) Power incl demand charge Mwh 1,505,715 - 12.086.6
iv) Natural Gas Th Ncum 87,624 10,148 889.2
v) Consumables:
a) Electrode Tons 3,188 840,900 2,681.1
b) Other consumables - - - 1,316.3
vi) Refractories Tons 24,345 80,000 1,947.6
vii) Make-up Water Th Cum 6,260 6,000 37.6
viii) Repair and Maintenance 867.8
Total cost above materials - - - 20,134.7
C Overheads - - - 1623.0
D Total manufacturing expenses - - - 102,565.3
The commercial production is assumed to commence from the end of

30th month after the project “Go–Ahead”.
The year-wise cumulative production build-up for the

different grades of steel have been considered as below:
Production build-up
Item Year 5
Year 1 Year 2 Year 3 Year 4
onwards
Operating Months
6 12 12 12 12
HR Coil 35% 75% 85% 95% 100%
10-6
BASHUNDHARA GROUP
Based on the above, the annual manufacturing expenses for the

initial five years of operation are summarized in Table 10-4.
TABLE 10-4 - YEAR-WISE MANUFACTURING EXPENSES

(Million BDT)
Sl.
No. Description 1st year 2nd year 3rd year 4th year 5th year
A Total input material 28,282.7 60,605.7 68,686.5 76,767.2 80,807.6
B Cost above materials

i) Labour and supervision 154.2 308.4 308.4 308.4 308.4
ii) Power 4,605.8 9,094.0 10,291.0 11,488.1 12,086.6
iii) Natural Gas 311.2 666.9 755.8 844.8 889.2
iv) Consumables:
a) Electrode 938.4 2,010.8 2,278.9 2,547.0 2,681.1
b) Other consumables 460.7 987.3 1,118.9 1,250.5 1,316.3
v) Refractories 681.7 1,460.7 1,655.5 1,850.2 1,947.6
vi) Make-up Water 13.1 28.2 31.9 35.7 37.6
vii) Repair and
571.6 741.0 783.3 825.7 846.8
Maintenance
Total cost above materials 7,450.9 15,315.6 17,243.2 19,170.9 20,134.7
C Overheads 708.1 1,450.6 1,519.6 1,588.5 1,623.0
Total manufacturing
D 36,441.7 77,371.9 87,449.3 97,526.6 102,565.3
expenses
10.3 ANNUAL SALES REALISATION

The net sales realisations (NSR), annual sales quantity and
amount of annual revenue from salable products at rated capacity operation
at 5 th year of operation have been indicated in Table 10-5 on the next page.
10-7
BASHUNDHARA GROUP
TABLE 10-5 - ANNUAL SALES REALISATION
Sales
Saleables Unit NSR Quantity Amount
BDT/ton tpy Mill BDT
HR Coil Tons 68,800 2,000,000 137,600.0

Limestone and Dolomite
Tons 1,200 37,783 45.3
fines
Calcined Lime and Dolo
Tons 6,000 16,248 97.5
fines
SMS Slag Tons 500 310,992 155.5
Annual Sales Realisation 137,898.3
10.4 FINANCIAL ANALYSIS

This section presents the financial analyses of the project over
twenty years period of operation. The profitability analysis has been
worked out based on the capital cost, annual manufacturing expense, sales
realisation and cash flows of the project.
Profit and Loss Statements and Cash Flow Statements have been
provided in Appendices 7-1 and 7-2.
10.4.1 Means of Financing

Considering a debt-equity ratio of 70:30, the means of financing
is given in Table 10-6.
TABLE 10-6 - MEANS OF FINANCING
Sl. Amount
No. Sources of fund Mill BDT
A. Loan 49,333.9
B. Equity 21,143.0
Total (A+B) 70,476.9
10-8
BASHUNDHARA GROUP
10.4.2 Normal Capital Ex penditure

Normal capital expenditure for addition/modification/
replacement of plant and machinery necessary for ensuring continued good
health of the plant has been provided on a normative basis in each year from
the fourth year of plant operation.
10.4.3 Depreciation
Depreciation has been calculated on straight-line method for the
purpose of profit and loss statement. For corporate tax calculation,
depreciation has been calculated on written down value (WDV) method.
10.4.4 Repayment of Borrowings

Loans from financial institutions/banks are considered to be
repaid in the following manner:
Year of repayment .. 8 years

Mode of repayment .. Quarterly installments
Moratorium period .. One year
10.4.5 Working Capital

The working capital required for the first year of operati on
and during subsequent years, will be met through bank borrowings and
internal accruals. The bank borrowings have been considered at 75 per
cent of the working capital requirement for each year.
10.4.6 Interest Charges

Interest charges on long-term loan as well as on bank borrowings
for working capital requirement have been calculated at 10 per cent per year.
10-9
BASHUNDHARA GROUP
10.4.7 Corporate Tax

In SEZ area of Bangladesh, Income tax holiday is as follows:
1 st , 2 nd and 3 rd year : 100%
4 th year : 80%
5 th year : 70%
6 th year : 60%
7 th year : 50%
8 th year : 40%
9 th year : 30%
10 th year : 20%
11 th year onwards : 0%
Corporate tax has been computed at the prevailing rate of 35

percent.
10.4.8 Financial Indicators

The salient financial indicators are given in Table 10-7.
TABLE 10-7 - FINANCIAL INDICATORS
Sl.
No. Item Value
A. Internal rate of return (post tax), % 30.7
D. Payback period, years 3.8
Debt Service Coverage Ratio
E. 3.5
(DSCR)
F. Breakeven capacity utilisation, % 25.2
The details of computation of internal rate of return (IRR post

tax), payback period, DSCR and breakeven analysis have been presented in
Appendices 7-3 to 7-6 respectively.
10-10
BASHUNDHARA GROUP
10.5 SCENARIO ANALYSIS

Scenario analysis has been carried out on base case.
Scenario 1 : Financial analyses has been carried out with

certain escalation factors on input material price, electrode price, electrical
energy, natural gas cost and net sales realisation.
The salient financial indicators for Scenario 1 are given in

Table 10-8.
TABLE 10-8 - FINANCIAL INDICATORS (SCENARIO 1)
Sl.
No. Item Value
A. Internal rate of return (post tax), % 24.3
D. Payback period, years 4.4
Debt Service Coverage Ratio
E. 2.7
(DSCR)
F. Breakeven capacity utilisation, % 46.2
Scenario 2: On base case, various sensitivity analysis has been

carried out on IRR (Post tax), DSCR and pay back period to measure the
financial elasticity of the project which is broadly based on enumerated
adverse as well as favourable variations on capital cost, input material
prices and sales realisations of finished products at constant prices and are
indicated in Table 10-9 on the next page.
10-11
BASHUNDHARA GROUP
TABLE 10-9 - SENSITIVITY ANALYSIS ON IRR (POST TAX), DSCR AND

PAYBACK PERIOD
Sl. Escalation/ IRR (post Pay back

Description DSCR
No. Reduction tax) period
Sensitivity to single
A.
variation
A.1 Base case 30.7 3.5 3.8
- (+) 5% 29.5 3.4 3.9
A.2 Sensitivity to Capital cost
- (+) 10% 28.3 3.2 4.1
Sensitivity to Input
A.3 - (+) 10% 23.1 2.7 4.8
material price
Sensitivity to Sales - (+) 5% 24.7 2.8 4.6
A.4
realisation of HR Coil - (+) 10% 18.5 2.1 5.7
Sensitivity to multiple
B.1
variations (Scenario 1)
- Capital cost - (+) 5%
- Input material price - (+) 5% 22.3 2.6 4.9

- Sales realization of
- (-) 3%
finished steel
Sensitivity to multiple
B.2
variations (Scenario 2)
- Capital cost - (+) 20%
- Input material price - (+) 10%
24.9 2.8 4.5
- Sales realization of
- (+) 5%
finished steel
From the Table 10-9, IRR level of all the scenarios hold good
along with the base level IRR projection of 30.7 per cent which is
reasonably good than the estimated weighted average cost of capital of the
project (WACC) of 10.3 per cent.
The WACC (post tax) has been estimated in the year when the
tax holiday expires i.e. in the 11 th year of operation. The basis of the WACC
(post tax) is provided in Table 10-10 on the next page.
10-12
BASHUNDHARA GROUP
TABLE 10-10 - BASIS OF WACC (POST TAX)
Debt : Equity 70:30

Cost of Debt (pre tax) 10%
Cost of Working Capital Loan (pre tax) 10%
Cost of Equity 20%
Rate of income tax in 11th year of operation 36%
Risk premium 1%
From the above, the project is estimated to be viable and merits

detailed study before implementation.
10-13
BASHUNDHARA GROUP
APPENDICES
0
BASHUNDHARA GROUP
APPENDIX-4-1 – PLANT MATERIALS FLOWSHEET
1
BASUNDHARA GROUP
Techno Economic Feasibility Report
APPENDIX-5-1 – LIST OF MAJOR EQUIPMENT FOR RAW MATERIAL

HANDLING SYSTEM
Sl.
No. Description Quantity
1. Vibrating feeders … 14 Nos.

2. Vibrating screen … 6 Nos.
3. Conveyor … Lot
4. Travelling tripper … 3 Nos.
5. Chute Lot
6. Hoist … Lot
7. Road weighbridge … 2 Nos.
2
BASHUNDHARA GROUP
APPENDIX-5-2 – LIST OF MAJOR EQUIPMENT FOR CALCINING PLANT
Sl.
(1 X 425 tpd)
1. One vertical shaft kiln complete with

charging and discharging system,
refractories, combustion system, hydraulic
system, kiln waste gas system, electrics
and instruments … 1 No.
2. Incoming raw materials conveyor system

(from nearest Junction house) … 1 Lot
3. Raw materials storage, screening facilities,

bunker, skip hoist etc … 1 Set
4. Product storage and screening facilities

comprising conveyor, bunker, screen … 1 Set
5. Waste gas cleaning system for shaft kiln … 1 Set
6. DE systems for materials storage building

and handling system … 2 Sets
7. Ventilation system for cable vaults,

electrical room … 1 Set
8. Airconditioning system for control room … 1 Set
9. Plant electrics/power distribution … 1 Set
10. Utility system including compressed air

station … 1 Set
3
BASHUNDHARA GROUP
APPENDIX-5-3 – LIST OF MAJOR EQUIPMENT AND FACILITIES FOR

STEELMELT SHOP
Sl.
A. ELECTRIC ARC FURNACE (EAF)

1. One (1) 220T capacity exchangeable shell type … 1 Set
UHP-EAF with horizontal scrap preheating
technology , with EBT tapping with 200MVA AC
furnace transformer, power conducting
arms, electrode clamping system with spray
cooling, all mechanical and electrical equipment
including furnace elbow, drives, electrode
regulation system, water cooled panels and roof,
platform structure cooling water and hydraulic
system, instrumentation, controls and process
automation
2. Continuous flux feeding system and ferro-alloys … 1 Set

charging system complete with storage bunkers,
weigh feeders, vibro-feeders, belt conveyor
system for feeding to the furnace fifth hole as
well as to the tapping point along with electrics,
instrumentation and controls
3. Combined fume extraction and gas cleaning … 1 Set

system for EAF and LF complete with combustion
chamber, water cooled ducts, fume and gas cooler,
mixing chamber, bag house, ID fan, stack, valves
and instrumentation and controls
4. Ladle transfer car … 1 No.
5. Oxy-carbon injectors on the EAF side wall, … 1 Set

lance manipulator through door, valve stand,
interconnected piping, instrumentation and
controls
6. Carbon fines storage bin for injection with dust … 1 Set

extraction, dispenser unit, all necessary
interconnected piping and valves and
instrumentation.
7. Clam shell type scrap bucket for hot heel … 3 Nos.

preparation
4
BASHUNDHARA GROUP
Appendix-5-3 – List of Major Equipment and Facilities for Steelmelt Shop

(cont’d)
Sl.
B. LADLE FURNACE (LF)
1. One (1) 220ton ladle furnace complete with 40 … 1 No.

MVA furnace transformer, water cooled furnace
cover (roof), gantry/roof lifting mechanism, arc
heating system, top and bottom inert gas
stirring system, multi strand wire feeder,
automatic temperature measuring & sampling
system, platform structure, hydraulic system,
cooling water system, drives, instrumentation,
controls and process automation
2. Ferroalloys and flux charging system complete … 1 Set

with storage bins, weighing, conveying and
charging system, electrics, instrumentation and
controls
3. Steel teeming ladle transfer cars with cable and … 2 Nos.

hose reeling facility and limit switches
C. THIN SLAB CASTER
1. Single strand thin slab caster complete with ladle … 1 Set

turret, tundish & tundish car, ladle shroud
manipulator, mould assembly, submerged entry
nozzle, brake, strand guide and dummy bar
system, primary/secondary cutting device,
hydraulics and cooling water systems, electrics,
drives, instrumentation, controls and process
automation
2. Tundish preparation facilities including tundish … 1 Set

tilting and nozzle removal stand, cooling stand,
nozzle setting and relining stands, drying
station, gunning machine for spray gunning of
tundish.
3. Transfer cars … 2 Nos.
4. Mould preparation facilities including, mould … 1 Set

testing stand, assembly stand, test stand,
alignment stand, storage stand, segment
alignment stand, machining devices, cleaning
stand and templates.
5
BASHUNDHARA GROUP
Appendix-5-3 – List of Major Equipment and Facilities for Steelmelt Shop

(cont’d)
Sl.
5. Segment preparation facilities including turning … 1 Set

device for segment, segment tilting stand, spray
cooling test stand, segment alignment stand and
segment storage stand.
D. LADLE PREPARATION AND HANDLING FACILITIES
1. Slag raking machines … 2 Nos.
2. 220 T Steel teeming ladles with ladle slide gates … 9 Nos.

and porous plug attachment (including emergency
ladle)
3. Online ladle pre-heater … 1 No.
4. Ladle dryers/preheaters (vertical) … 2 Nos.
5. Ladle dryers(horizontal) … 2 Nos.
6. Slide gate and porous plug setting stands … 2 Nos.
7. Ladle debricking stand … 1 No.
8. Ladle relining stand (for 3 ladles) … 1 No.
E. REFRACTORIES (For EAF, Ladle, Tundish, … 1 Lot

Slide Gates, Stopper Rods and others
F. EOT CRANES AND MAINTENANCE HOISTS
1. Crane (on magnet/grab) for scrap & HBI … 4 Nos.

charging
2. Steel ladle handling crane … 2 Nos.
3. Casting aisle crane … 2 Nos.
4. Preparation aisle crane … 2 Nos.
5. Jib crane … 1 Lot
6. Maintenance hoists … 1 Lot
All EOT cranes will be provided with load cell based weighing
facilities.
6
BASHUNDHARA GROUP
APPENDIX-5-4 - LIST OF MAJOR EQUIPMENT FOR TUNNEL FURNACE

AND HOT STRIP MILL
Sl.
1. Tunnel type slab reheating furnace, with

mechanical and electrical equipment,
refractories, instruments, automation and
controls … 1 Set
2. Roller table between tunnel furnace and

crop shear … 1 Set
3. Pendulum/crop shear with quick

blade changer, side guides and crop
buckets … 1 Set
4 Hydraulic descaler with high pressure

water system and roller table … 2 Sets
5. Roughing mill/heavy reduction mill with

side guides, spindles … 2 Stands
6. Finishing mill with side guides, loopers,

pinion stands, gears, spindles and quick
work roll changing system … 4 Stands
7. Run-out roller table with laminar strip

cooling water spray system … 1 Set
8. Downcoiler with pinch rolls, mandrel,

wrapper rolls, coil stripper car, and
bridging table … 2 Sets
9. Coil conveyor system with turntables … 1 Set
10. Sample shear station, coil circumferential

and eye strapping machines, weighing
machine and marking machine … 1 Set
7
BASHUNDHARA GROUP
Appendix-5-4 - List of Major Equipment for Tunnel Furnace and Hot Strip
Mill (cont’d)
Sl.
11. Roll shop:
a) Work roll grinding machines … 2 Nos.
b) Combi roll grinders … 2 Nos.
c) Shear blade grinder … 1 No.
d) Chock mounting/dismounting equipment … 1 Lot
e) Machine tools, measuring gauges and

instruments, bearing cleaning and
mounting equipment … 1 Lot
8
BASUNDHARA GROUP
APPENDIX-5-5 – LIST OF MAJOR EQUIPMENT FOR AIR SEPARATION

PLANT
Sl.
1. Feed air compressor … 1 Set
2. Cold box … 1 Set
3. Heat exchanger … 1 Set

4. Liquid storage tank for oxygen, … 1 Set
nitrogen and argon
5. Pressure reducing station and 1 Set
buffer vessels
9
BASHUNDHARA GROUP
APPENDIX-6-1 – LIST OF MAJOR EQUIPMENT FOR ELECTRIC POWER

DISTRIBUTION SYSTEM
SL.
1 400 kV, indoor GIS bays complete with … 1 Set

control and auxiliary equipment at MRSS
2 400 kV gas-filled bus duct including SF 6 to air … 1 Lot

bushing etc. at MRSS
3 100/125 MVA, 400/33kV, ONAN/ONAF … 4 Sets

power transformer with OLTC and accessories at
MRSS
4 25/31.5 MVA, 33/6.6kV, ONAN/ONAF power … 6 Sets

transformer with OLTC and accessories at
various LBSS
5 33 kV indoor GIS bays complete with control … 1 Set

and auxiliary equipment at MRSS
6 33 kV indoor GIS bays complete with control … 3 Sets

and auxiliary equipment at various LBSS
7 Substation auxiliaries at MRSS complete with … 1 Lot

auxiliary transformers, 415 V switchboards,
240V AC distribution board, battery, banks,
charger and DC distribution board etc.
8 Substation auxiliaries at various LBSS … 3 Lots
complete with 415 V switchboards, 240 V AC

distribution board, battery banks, charger and
DC distribution board etc.
9 Control & relay panels for 400 kV GIS bays at … 1 Set

MRSS
10 Control and relay panels for 33 kV GIS bays … 1 Set

at MRSS
11 Control and relay panels for 33 kV GIS bays … 3 Sets

at various LBSS
12 6.6 kV indoor switchgear distribution boards … 3 Sets

complete with relays, control and auxiliary
equipment
10
BASUNDHARA GROUP
Appendix-6-1 – List of Major Equipment for Electric Power Distribution

System (cont’d)
SL.
13 415 V load centre substations comprising 2500 … 1 Lot

kVA or 2000 kVA or 1600 kVA, 6.6/0.433 -
0.25 kV dry type transformers, busducts and 415
V switchboards
14 Voltage source converter based dynamic VAR … 1 Lot

controller for EAF and LF complete with valves
and accessories, controller, 72.5 kV SF 6
circuit breakers, reactors, filter capacitors banks,
disconnector switches, control and relay panels,
outdoor bus works, insulators etc.
15 6.6 kV filter banks complete with

… 1 Lot
disconnector switches, reactors, capacitor
banks, bus work etc.
16 Power and control cables ... 1 Lot
17 Power wiring and lighting system … 1 Lot
18 System as well as equipment earthing, and … 1 Lot

lightning protection system
19 Cable galleries and accessories … 1 Lot
20 Substation automation system … 1 Lot
11
BASHUNDHARA GROUP
APPENDIX-6-2- LIST OF MAJOR EQUIPMENT/SYSTEMS FOR

COMMON WATER FACILITY
Sl.
1. Make-up Water Pumps … 1 Set
2. Softening plant with all accessories and soft … 1 Set

water distribution system
3. Drinking Water treatment plant with all … 1 Set

accessories and distribution system
4. Sewage Treatment plant with all accessories … 1 Set

5. Central Effluent Treatment plant with all … 1 Set
accessories
6. Fire Fighting Water Pumps … 1 Set
12
BASUNDHARA GROUP
APPENDIX-6-3- LIST OF MAJOR EQUIPMENT FOR UTILITY SYSTEMS
Sl.
A. COMPRESSED AIR SYSTEM

1. Centrifugal air compressor, 7000 … 5 Nos.
Nm3/hr, 8 kg/cm2,g
2. Air dryer … 3 Nos.

3. Air receiver … 4 Nos.
B. NATURAL GAS METERING AND PRESSURE
REDUCING STATION
1. Pressure control valve along with … 1 No.
isolation, safety valves, piping and
instrumentation
C. CHILLED WATER PLANT
1. Vapour compression type chilled … 3 Nos.

water plant, 700 TR
2. Associated piping, electrics, … 1 Lot

instrumentation and valves
13
BASHUNDHARA GROUP
APPENDIX-6-4 – LIST OF MAJOR EQUIPMENT FOR

INSTRUMENTATION, AUTOMATION, PLANT COMMUNICATION AND
FIRE DETECTION AND ALARM SYSTEM
Sl.
A. INSTRUMENTATION AND LEVEL-1
AUTOMATION SYSTEM
1. Level 1 Automation system … 1 Lot
2. Field mounted instruments and special … 1 Lot
instruments
3. Cables … 1 Lot
B. SUPERVISORY COMPUTER AND PROCESS
AUTOMATION SYSTEM (LEVEL-2)
1. Level 2 Automation for EAF … 1 Lot
2. Level 2 Automation for LF … 1 Lot
3. Level 2 Automation for VD … 1 Lot

4. Level 2 Automation for TSCR … 1 Lot
5. SCADA system … 1 Lot

6. Level 3 Automation System … 1 Lot
C. PLANT COMMUNICATION SYSTEMS

1. IP based CCTV system for the Plant … 1 Lot
2. Plant Telephone system including IP based … 1 Lot
Telephone exchange and Network
3. CCU based Loudspeaker Intercommunication … 1 Lot

system for the Plant
4. VHF Wireless radio communication system for the … 1 Lot

Plant
D. FIRE DETECTION AND ALARM SYSTEM
1. Intelligent addressable Fire detection and alarm … 1 Lot
system for the Plant
14
BASHUNDHARA GROUP
APPENDIX-6-5 – LIST OF MAJOR EQUIPMENT FOR LABORATORY
Sl.
No. Equipment name Quantity
A. STEELMAKING LABORATORY
1. OE Spectrometer … 1 No.
2. XRF Spectrometer (SEQ) … 1 No.
3. Swing Grinder … 1 No.
4. Briquetting Press … 1 No.
5. Automatic C&S Analyser … 1 No.
6. Vertical Cutoff Machine … 1 No.
7. Lollipop sample cutter and finisher … 1 No.
B. THIN SLAB CASTING AND ROLLING MILL

LABORATORY
1. Punching Press … 2 Nos.
2. Milling Machine … 2 Nos.
3. Shaping Machine … 1 No.
4. Pedestal Grinder … 1 No.
Mechanical Hydraulic Shear …
5. 2 Nos.
(2000 width x 4 mm thick)
6. Universal Testing Machine … 3 Nos.

7. Bend Testing Machine … 2 Nos.
8. Low Temperature Cabinet … 2 Nos.
9. Rockwell Hardness Tester … 2 Nos.
10. Polisher + Grinder … 2 Nos.
11. Drying Oven to be used for ageing … 2 Nos.
12. Metallurgical Microscope 1000X … 2 Nos.
13. Misc Items (PH Meter, Fume hood etc.) … 1 No.
14. Mounting Press … 2 Nos.
15. Erichssen Cupping Testing Machine … 2 Nos.
15
BASHUNDHARA GROUP
APPENDIX-6-6 – LIST OF MAJOR EQUIPMENT FOR REPAIR AND

MAINTENANCE SHOP
Sl.
1. Center Lathe, SOB-1600 mm, Admit-3000 … 1

mm
2. Center Lathe, SOB-500 mm, Admit-3000 … 1

mm
3. Shaping Machine, Stroke-660 mm … 1
4. Milling Machine, Table Size-1600 mm x 300 … 1

mm
5. Power Hack Show, Job Dia. 300 mm … 1
6. Column Drill … 1
7. Vertical Hydraulic Press, 160 ton …
8. Wooden Working Table/Electrician’s Bench … 4
9. Cabinet/Almirah … 9
10. Hand Trolley … 2+3=5
11. Rack for Stores … 5
12. Gas Welding/Cutting Set … 2
13. Welding Transformer, Range 70 to 450 … 2

Amps
14. Miscellaneous Hand Tools … 1 Lot
15. Office Furniture … 1 Lot
16. Double Eneded Pedestal Grinder, Wheel … 1

Size – 400 mm x 50 mm
16
BASHUNDHARA GROUP
Appendix-6-6 – List of Major Equipment for Repair and Maintenance Shop

(cont’d)
Sl.
17. Measuring Instruments … 1 Lot
18. 15 ton Single Girder Rail Mounted Crane … 1
19. Motor Test Pannel … 1
20. Bearing, Pulley and Coupling Extractor … 1 Set
21. Testing Instruments and Electrician’s Hand … 1 Lot

Tools
22. Insulation Tester (MEGGAR) … 1 Set
23. Portable Electric Blowers with Heating … 1

attachment
24. Platform Type Weighing Machine, Capacity … 1

1000 kg
25. Pipe Bending Machine … 1
26. Hose Crimping Machine … 1
27. Radial Drill … 1
28. Hydraulic Test Bench Section … Lot
29. Electrical Repair Shop … Lot
17
BASHUNDHARA GROUP
APPENDIX-9-1 – PROJECT IMPLEMENTATION SCHEDULE
18
BASHUNDHARA GROUP
APPENDIX-10-1 – PROFIT & LOSS STATEMENT

(Million BDT)
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year 11th Year 12th Year 13th Year 14th Year 15th Year 16th Year 17th Year 18th Year 19th Year 20th Year
A Operating cost w/o Salaries & wages 35,579.4 75,612.9 85,621.3 95,629.7 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9 100,633.9
B Salaries & Wages 154.2 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4 308.4
C Works cost 35,733.6 75,921.3 85,929.7 95,938.1 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3 100,942.3
D Admn Overheads 708.1 1,450.6 1,519.6 1,588.5 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0 1,623.0
E Total Manufacturing Expenses (A-D) 36,441.7 77,371.9 87,449.3 97,526.6 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3 102,565.3
F Expected sales 48,264.4 103,423.7 117,213.6 131,003.4 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3 137,898.3
G Gross profit before interest & depreciation (F - 11,822.7 26,051.8 29,764.3 33,476.8 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1
H Financial expenses
Interest on term loan 2,279.7 4,642.7 4,393.8 3,777.1 3,160.5 2,543.8 1,927.1 1,310.4 693.8 115.6 (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) 0.0 - - -
Interest on borrowing for WC 585.3 1,252.0 1,418.2 1,584.4 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5
Total (H) 2,865.1 5,894.8 5,812.0 5,361.6 4,828.0 4,211.3 3,594.6 2,978.0 2,361.3 1,783.2 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5
I Depreciation 1,280.4 2,560.7 2,610.9 2,661.2 2,711.4 2,761.6 2,811.8 2,862.0 2,912.2 2,962.4 2,924.1 2,885.7 2,925.6 2,965.6 3,015.8 3,052.3 3,088.9 3,139.1 3,189.3 3,239.5
J Operating Profit (G-H-I) 7,677.3 17,596.3 21,341.3 25,454.1 27,793.7 28,360.2 28,926.6 29,493.1 30,059.5 30,587.5 30,741.5 30,779.9 30,739.9 30,700.0 30,649.7 30,613.2 30,576.7 30,526.5 30,476.3 30,426.0
K Preliminery Expenses written off 9.3 9.3 9.3 9.3 9.3 - - - - - - - - - - - - - - -
L Profit/Loss before tax (J-K) 7,668.0 17,587.0 21,332.0 25,444.8 27,784.4 28,360.2 28,926.6 29,493.1 30,059.5 30,587.5 30,741.5 30,779.9 30,739.9 30,700.0 30,649.7 30,613.2 30,576.7 30,526.5 30,476.3 30,426.0
M Provision For Tax - - - 1,590.9 2,727.8 3,821.3 4,981.2 6,199.8 7,470.8 8,779.2 11,093.7 11,157.2 11,208.0 11,248.7 11,281.3 11,307.4 11,328.3 11,345.0 11,358.4 11,369.2
N Profit after tax (L-M) 7,668.0 17,587.0 21,332.0 23,853.9 25,056.6 24,538.8 23,945.4 23,293.3 22,588.8 21,808.3 19,647.7 19,622.7 19,531.9 19,451.2 19,368.4 19,305.8 19,248.4 19,181.4 19,117.8 19,056.9
O Retained profit / loss

- Current 7,668.0 17,587.0 21,332.0 23,853.9 25,056.6 24,538.8 23,945.4 23,293.3 22,588.8 21,808.3 19,647.7 19,622.7 19,531.9 19,451.2 19,368.4 19,305.8 19,248.4 19,181.4 19,117.8 19,056.9
- Cumulative 7,668.0 25,255.0 46,587.1 70,440.9 95,497.5 120,036.4 143,981.8 167,275.1 189,863.9 211,672.1 231,319.9 250,942.6 270,474.4 289,925.7 309,294.1 328,599.9 347,848.3 367,029.8 386,147.6 405,204.4
19
BASHUDHARA GROUP
Integrated Steel Plant at Chittagong
APPENDIX-10-2 - CASH FLOW STATEMENT

(million BDT)
Constru ction period

1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr 11th yr 12th yr 13th yr 14th yr 15th yr 16th yr 17th yr 18th yr 19th yr 20th yr 21st yr 22nd yr
O p e r a t i n g Period
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr 11th yr 12th yr 13th yr 14th yr 15th yr 16th yr 17th yr 18th yr 19th yr 20th yr
A. SOURCES OF CASH
Institutional Term loan incl deferred ID 5,078.7 30,140.2 11,593.9 2,520.9 - - - - - - - - - - - - - - - - - -
Share capital 2,176.6 12,917.2 4,968.8 1,080.4 - - - - - - - - - - - - - - - - - -
ITC Relief - - - - - - - - - - - - - - - - - - - - - -
Profit before tax with interest added ba - - 10,533.1 23,481.8 27,144.1 30,806.4 32,612.4 32,571.5 32,521.3 32,471.1 32,420.8 32,370.6 32,409.0 32,447.4 32,407.4 32,367.5 32,317.3 32,280.7 32,244.2 32,194.0 32,143.8 32,093.6
Depreciation - - 1,280.4 2,560.7 2,610.9 2,661.2 2,711.4 2,761.6 2,811.8 2,862.0 2,912.2 2,962.4 2,924.1 2,885.7 2,925.6 2,965.6 3,015.8 3,052.3 3,088.9 3,139.1 3,189.3 3,239.5
Increase in bank borrowing - - 11,706.7 813.8 1,661.9 1,661.9 831.0 - - - - - - - - - - - - - - -
Preliminary expenses written off - - 9.3 9.3 9.3 9.3 9.3 - - - - - - - - - - - - - - -
Su b-total (A) 7,255.3 43,057.5 40,092.2 30,466.9 31,426.2 35,138.7 36,164.0 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1 35,333.1
B. DISPOSITION OF FUNDS
Capital expenditure 7,061.6 41,185.2 14,564.8 3,601.3 - - - - - - - - - - - - - - - - - -
Interest during construction 193.8 1,872.3 1,998.0 - - - - - - - - - - - - - - - - - - -
Increase in working capital - - 15,608.9 1,085.0 2,215.9 2,215.9 1,108.0 - - - - - - - - - - - - - - -
N ormal capital expenditure - - - - 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2
Decrease in LT loan - - - 3,083.4 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 3,083.4 - - - - - - - - - -
Decrease in W/Cap loan - - - - - - - - - - - - - - - - - - - - - -
Interest on term loan - - 2,279.7 4,642.7 4,393.8 3,777.1 3,160.5 2,543.8 1,927.1 1,310.4 693.8 115.6 (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) 0.0 - - -
Interest on borrowing for WC - - 585.3 1,252.0 1,418.2 1,584.4 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5 1,667.5
Provision for tax - - - - - 1,590.9 2,727.8 3,821.3 4,981.2 6,199.8 7,470.8 8,779.2 11,093.7 11,157.2 11,208.0 11,248.7 11,281.3 11,307.4 11,328.3 11,345.0 11,358.4 11,369.2
Su b-total (B) 7,255.3 43,057.5 35,036.8 13,664.5 15,251.8 16,392.3 15,887.7 15,256.5 15,799.7 16,401.6 17,056.0 14,702.8 13,818.4 13,881.9 13,932.7 13,973.4 14,006.0 14,032.1 14,053.0 14,069.7 14,083.1 14,093.9
C. NET SURPLUS - - 5,055.4 16,802.4 16,174.4 18,746.5 20,276.4 20,076.5 19,533.3 18,931.5 18,277.1 20,630.2 21,514.7 21,451.2 21,400.3 21,359.7 21,327.1 21,301.0 21,280.1 21,263.4 21,249.9 21,239.2
D. Opening Balance - - - 5,055.4 21,857.8 38,032.2 56,778.7 77,055.1 97,131.6 116,664.9 135,596.4 153,873.5 174,503.7 196,018.4 217,469.5 238,869.9 260,229.5 281,556.6 302,857.6 324,137.7 345,401.1 366,651.0
CUMULATIVE - - 5,055.4 21,857.8 38,032.2 56,778.7 77,055.1 97,131.6 116,664.9 135,596.4 153,873.5 174,503.7 196,018.4 217,469.5 238,869.9 260,229.5 281,556.6 302,857.6 324,137.7 345,401.1 366,651.0 387,890.2
20
BASHUDHARA GROUP
Integrated Steel Plant at Chittagong
APPENDIX-10-3 - INTERNAL RATE OF RETURN (POST TAX)

(million BDT)
Construction period
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr 11th yr 12th yr 13th yr 14th yr 15th yr 16th yr 17th yr 18th yr 19th yr 20th yr 21st yr 22nd yr
Operating Period
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr 9th yr 10th yr 11th yr 12th yr 13th yr 14th yr 15th yr 16th yr 17th yr 18th yr 19th yr 20th yr
A Cash outflow
A.1 - Capital cost w/o IDC incl. normal capital expenditure 7,061.6 41,185.2 14,564.8 3,601.3 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2
A.2 - Working capital - - 15,608.9 1,085.0 2,215.9 2,215.9 1,108.0 - - - - - - - - - - - - - - -
A.3 Total Cash outflow 7,061.6 41,185.2 30,173.7 4,686.4 3,273.1 3,273.1 2,165.1 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2
B Adjusted Cash Inflow

B.1 - Profit after tax - - 7,668.0 17,587.0 21,332.0 23,853.9 25,056.6 24,538.8 23,945.4 23,293.3 22,588.8 21,808.3 19,647.7 19,622.7 19,531.9 19,451.2 19,368.4 19,305.8 19,248.4 19,181.4 19,117.8 19,056.9
B.3 - Interest - - 2,865.1 5,894.8 5,812.0 5,026.3 4,354.0 3,643.9 2,975.6 2,352.0 1,774.4 1,271.4 1,065.8 1,063.1 1,059.5 1,056.5 1,053.8 1,051.6 1,049.7 1,047.8 1,046.0 1,044.4
B.4 - Depreciation & amortisation - - 1,289.7 2,570.0 2,620.2 2,670.4 2,720.7 2,761.6 2,811.8 2,862.0 2,912.2 2,962.4 2,924.1 2,885.7 2,925.6 2,965.6 3,015.8 3,052.3 3,088.9 3,139.1 3,189.3 3,239.5
B.5 - Residual value - - - - - - - - - - - - - - - - - - - - - 51,808.7
B Total Cash inflow - - 11,822.7 26,051.8 29,764.3 31,550.7 32,131.2 30,944.3 29,732.8 28,507.3 27,275.4 26,042.1 23,637.6 23,571.4 23,517.0 23,473.3 23,438.0 23,409.7 23,387.0 23,368.3 23,353.1 75,149.5
C Net Cash Flow ( B - A) (7,061.6) (41,185.2) (18,351.0) 21,365.4 26,491.2 28,277.6 29,966.1 29,887.1 28,675.7 27,450.2 26,218.3 24,984.9 22,580.4 22,514.2 22,459.9 22,416.2 22,380.8 22,352.6 22,329.8 22,311.2 22,296.0 74,092.4
D Internal Rate of Return (post tax) 30.7%
21
BASHUNDHARA GROUP
Techno-Economic Feasibility Report Title>
APPENDIX-10-4 - PAYBACK PERIOD

(million BDT)
Construction period
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd
Operating Period
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th
A. Cap. Cost outflow incl. IDC 7,255.3 43,057.5 16,562.8 3,601.3 - - - - - - - - - - - - - - - - - -

B. WC outflow - - 15,608.9 1,085.0 2,215.9 2,215.9 1,108.0 - - - - - - - - - - - - - - -
C. Normal cap expenditure - - - - 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2
D. Net cash outflow (A+B+C) 7,255.3 43,057.5 32,171.7 4,686.4 3,273.1 3,273.1 2,165.1 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2 1,057.2
E. Cumulative Cash outflow 7,255.3 50,312.8 82,484.5 87,170.9 90,444.0 93,717.0 95,882.1 96,939.3 97,996.4 99,053.6 100,110.8 101,167.9 102,225.1 103,282.2 104,339.4 105,396.5 106,453.7 107,510.8 108,568.0 109,625.1 110,682.3 111,739.4
F. PAT - - 7,668.0 17,587.0 21,332.0 23,853.9 25,056.6 24,538.8 23,945.4 23,293.3 22,588.8 21,808.3 19,647.7 19,622.7 19,531.9 19,451.2 19,368.4 19,305.8 19,248.4 19,181.4 19,117.8 19,056.9
G. ITC relief - - - - - - - - - - - - - - - - - - - - - -
H. Depreciation & amort. - - 1,289.7 2,570.0 2,620.2 2,670.4 2,720.7 2,761.6 2,811.8 2,862.0 2,912.2 2,962.4 2,924.1 2,885.7 2,925.6 2,965.6 3,015.8 3,052.3 3,088.9 3,139.1 3,189.3 3,239.5
I. Interest - - 2,865.1 5,894.8 5,812.0 5,026.3 4,354.0 3,643.9 2,975.6 2,352.0 1,774.4 1,271.4 1,065.8 1,063.1 1,059.5 1,056.5 1,053.8 1,051.6 1,049.7 1,047.8 1,046.0 1,044.4
J. Net cash in-flow (E+F+G+H) - - 11,822.7 26,051.8 29,764.3 31,550.7 32,131.2 30,944.3 29,732.8 28,507.3 27,275.4 26,042.1 23,637.6 23,571.4 23,517.0 23,473.3 23,438.0 23,409.7 23,387.0 23,368.3 23,353.1 23,340.8
K. Cumulative Cash inflow - - 11,822.7 37,874.5 67,638.8 99,189.5 131,320.7 162,265.0 191,997.8 220,505.1 247,780.6 273,822.7 297,460.2 321,031.6 344,548.7 368,022.0 391,460.0 414,869.8 438,256.8 461,625.1 484,978.2 508,319.0
L. Cumulative net cash flow (7,255.3) (50,312.8) (70,661.8) (49,296.4) (22,805.1) 5,472.5 35,438.6 65,325.7 94,001.4 121,451.5 147,669.8 172,654.8 195,235.2 217,749.4 240,209.3 262,625.5 285,006.3 307,358.9 329,688.8 351,999.9 374,295.9 396,579.5
M. Pay back period (years) - - - 3.8 - - - - - - - - - - - - - - - -
22
BASHUNDHARA GROUP
APPENDIX-10-5 - DEBT SERVICE COVERAGE RATIO (DSCR)

(million BDT)
Sl.
No. Description 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year
A. Coverage
1. Profit after tax 7,668.0 17,587.0 21,332.0 23,853.9 25,056.6 24,538.8 23,945.4 23,293.3 22,588.8 21,808.3
2. Depreciation 1,280.4 2,560.7 2,610.9 2,661.2 2,711.4 2,761.6 2,811.8 2,862.0 2,912.2 2,962.4
Preliminery Expenses
3. 9.3 9.3 9.3 9.3 9.3 - - - - -
Written Off
4. Interest on term loan 2,279.7 4,642.7 4,393.8 3,777.1 3,160.5 2,543.8 1,927.1 1,310.4 693.8 115.6
Total coverage 11,237.4 24,799.8 28,346.1 30,301.5 30,937.7 29,844.2 28,684.3 27,465.8 26,194.8 24,886.4
B. Loan liability
1, Loan repayment - 3,083.4 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 6,166.7 3,083.4
2. Interest on term loan 2,279.7 4,642.7 4,393.8 3,777.1 3,160.5 2,543.8 1,927.1 1,310.4 693.8 115.6
C. Total Loan liability 2,279.7 7,726.1 10,560.5 9,943.9 9,327.2 8,710.5 8,093.8 7,477.2 6,860.5 3,199.0
D. DSCR 3.5 4.9 3.2 2.7 3.0 3.3 3.4 3.5 3.7 3.8 7.8
23
BASHUNDHARA GROUP
APPENDIX-10-6 - BREAKEVEN ANALYSIS (1ST YEAR OF 100% CU)

(million BDT)
5th Year of operation

Sl.
No. Description Fixed Cost Variable Cost
1. Raw materials - 80,807.6
2. Wages/Salaries 308.4 -
3. Power, fuel and gases, water 116.2 12,897.2
4. Repair and maintenance 433.9 433.9
5. Stores and consumables - 5,945.0
6. Administration and sales overheads 933.5 689.5
7. Interest on long term loan 3,160.5 -
8. Interest on working capital loan 1,667.5 -
9. Depreciation 2,711.4 -
10. Preliminary expenses written off 9.3 -
Total 9,340.6 100,773.3
11. Expected sales 137,898.3 -
12. Less : Variable cost 100,773.3 -
13. Contribution 37,125.0 -
14. Breakeven capacity 25.2% -
15. Cash breakeven capacity 17.8% -

BASHUNDHARA GROUP
DRAWINGS
DASTUR ENGINEERING INTERNATIONAL GmbH, ABU DHABI
M. N. DASTUR & COMPANY (P) LTD
CONSULTING ENGINEERS, KOLKATA
ATRO INTERNATIONAL FZE

BASHUNDHARA GROUP
BANGLADESH
TECHNO-ECONOMIC FEASIBILITY REPORT FOR AN
INTEGRATED STEEL PLANT NEAR CHITTAGONG
OVERALL POWER DISTRIBUTION SYSTEM
BLOCK DIAGRAM
30691-97A-000-ELE-0001 0

Bashundhara - TEFR For ISP

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TECHNO-ECONOMIC FEASIBILITY REPORT

INTEGRATED STEEL PLANT

Objectives : Observations : Plant Configuration :

> Implementation period: 30 months from date of Go-ahead

Cap. 1st yr 2nd yr 3rd yr 4th yr 5th yr CAPITAL COST BREAK-UP

Projected price and cost, BDT/Ton 80.0%

FeMn 120,200 120,200 120,200 120,200 120,200 million BDT

MANUFACTURING EXPENSES SCENARIO 2

B.1 Sensitivity to multiple variations

© 2016- M N DASTUR & CO (P) LTD . ALL RIGHTS RESERVED

1.1 Background ......................................................................... 1-1

2- PROJECT LOCATION AND PLANT SITE ............................. 2-1

2.1 Project Location ........................................................................ 2-1

3- MARKET STUDY ................................................................ 3-1

3.1 Preamble ................................................................................... 3-1

4 - PROJECT CONCEPT ........................................................... 4-1

5 - MAJOR PLANT FACILITIES .............................................. 5-1

5.1 Raw Material Handling and Storage System ............................ 5-1

6.1 Electric Power ........................................................................... 6-1

7 - ENVIRONMENTAL POLLUTION POTENTIAL AND

7.1 Pollution Potential .................................................................... 7-1

8 - ORGANISATION AND MANPOWER ........................................ 8-1

8.1 Organisation Structure ......................................................... 8-1

9 - PLANT CONSTRUCTION AND IMPLEMENTATION

9.1 Volume of Construction Work .................................................. 9-1

10 - COST AND PROFITABILITY ........................................... 10-1

10.1 Capital Cost Estimate ......................................................... 10-1

Table 3-1 – Bangladesh – GDP Trend ............................................................ 3-2

Fig. 2-1 - Site Location Map ...................................................................... 2-2

Appendix-4-1 – Plant Materials Flowsheet ....................................................1

Drg. No.30691-97A-000-WTS-0001 … Schematic Water Flow Diagram

Drg. No.30691-97A-000-LTL-0001 … Plant General Layout

1.3 METHODOLOGY AND APPROACH

Various options were evaluated based on the available

Various alternatives for the plant layout were evaluated

1.4 STRUCTURE OF THE REPORT

Chapter 8 - Organisation and Manpower

Chapter 10 - Cost and Profitability

The chapters are supported by drawings/appendices as

2 - PROJECT LOCATION AND PLANT SITE

This Chapter presents the details of location, site conditions and

2.1 PROJECT LOCATION

2.2 SITE FEATURES

2 - Project Location and Plant Site (cont’d)

FIG. 2-1 - SITE LOCATION MAP

2 - Project Location and Plant Site (cont’d)

2.2.1 Present Status of Site

Bamonsundar canal flowing from east to west divides the land

A super dyke and slope protection work is being carried out by

2 - Project Location and Plant Site (cont’d)

future by BEZA. This road is further connected to Dhaka-Chittagong

FIG. 2-2 - BAMONSUNDAR CANAL WITHIN SITE

FIG. 2-3 – SITE FOR PHASE-I

2 - Project Location and Plant Site (cont’d)

FIG. 2-4 – SITE FOR FUTURE EXPANSION

FIG. 2-5 – SITE DEVELOPMENT WORK IN PROGRESS

2 - Project Location and Plant Site (cont’d)

FIG. 2-6 – DREDGING WORK IN PROGRESS

FIG. 2-7 – PROPOSED AREA FOR JETTY

2 - Project Location and Plant Site (cont’d)

2.3 CLIMATIC CONDITIONS

3 - Market Study (cont’d)

Growth in Bangladesh has averaged more than 6 percent over