Steel Mill in Angul Undergoes $10 Billion Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Jindal Steel and Power Limited (BSE:532286) is expected to commission the first phase of a 6 million-ton-per-year expansion project at the company's steel mill in Angul, Orissa, by the first quarter of 2011. The first phase of the plant will have a capacity of 3 million tons per year.

As per the latest update, there already has been an investment of $1 billion for land acquisition and equipment orders. The total expansion cost is $10 billion. In addition to this, the company will invest another $1 billion for power plants totaling 2,130 megawatts (MW), including an 810-MW (6x135-MW units) coal-fired captive power plant and a 1,320-MW (2x 660-MW units) power plant.

In the first phase, the company will commission a coal gasification unit with a capacity of 225,000 normal cubic meters per hour; a direct reduction (DRI) plant with a 2 million-ton-per-year capacity; a five-meter-wide plate mill with a 1.5 million-ton-per-year capacity; and the 810-MW captive power plant.

The second phase of the expansion will begin after the commissioning of the first phase, and is expected to be completed in three years from the start of construction.

When the second phase is complete, the plant will have a 12.5 million-ton-per-year steel production capacity and the following units on site: a coke washer; a sinter plant; a pellet plant; a coke oven and by-product plant; a coal gasification plant; a DRI plant and blast furnace; a steel melting shop; a slab caster unit; a plate and hot strip mill; an oxygen plant; a lime and dolomite plant; and power plants.

The total area for the site is 5,750 acres, and the technology used for the coal gasification is DRI-BF-EAF, developed by Sasol-Lurgi Technology Company (Johannesburg, South Africa). The coal-gasification technology will offer a practical means of utilizing coal for meeting stringent environmental control requirements. The DRI gasification route is being used for the first time worldwide and has the advantage of using high-ash coal, which is readily available in the vicinity of the project site.

JSPL is concerned about the facility's impact on the environment and has therefore taken adequate measures and adopted the best pollution control norms available. One of the major steps taken toward protecting the environment and reducing soil degradation is the use of fly ash bricks in place of conventionally used red bricks in all construction activities at the project sites.

Apart from the project execution, the company has initiated a series of measures for development. This includes providing electricity to 18 peripheral villages, a mobile hospital, drinking water facilities, and rural roads in the nearby areas. JSPL plans to spend $1.25 billion on various corporate social responsibility initiatives. It is setting up a vocational training centre to increase the livelihood opportunities for local residents. An industrial training institute is being set up near the project site to groom skilled laborers for the plant.

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