Proposal for Business Sale of Integrated Steel Plant (0.69 mmtpa) at Kharagpur, W.B.
The Assets Under Sale
Arcil (Asset Reconstruction Company (India) Limited, is sponsored by Banks like State Bank of India, IDBI Bank, ICICI Bank and Punjab National Bank along with multiple Banks and FIs. Arcil has been established to acquire financial assets from banks and FIs with the objective of revival & restructuring focused management of assets and maximization of recovery. Arcil is registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) as a Securitization Company and Reconstruction Company and is a financial institution within the meaning of section 2(h)(ia) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
About Arcil
Location Map
The Specifics
Plant Layout
SR No
Table of Contents
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1 About Arcil 3 2 Introduction - Company Overview 4 3 Ramsarup Lohh Udyog - Project Overview 5 4 Connectivity 5 5 Plant Details 8 6 Other Information 11 7 Dues and Approval Status 12
Page no
Site & Lease Details
Sr No
Unit
Existing Capacity
Expansion(0.69 MMTPA)
Technology
1
Blast Furnace
2,80,000 MTPA
5,60,000 MTPA
Mecon
2
DRI Plant
1,80,000 MTPA
3,60,000 MTPA
Outokumppu Technology
3
Captive Power Plant
20 MW
Cethar Vessels and Hangzhou, China
4
Steel Melting Shop
0.33 MMTPA
0.69 MMTPA
Furnace- Sarralle, Spain, Caster- Siemens VAI, Austria
5
Air Separation Plant
4600 Cubic Meter
SASPG, China
6
Sinter Plant
9,00,000 MTPA
Shoungang, China
Company Overview Ramsarup Industries Limited (RIL), a public limited company has following six business divisions: a) Ramsarup Lohh Udyog (RLU) at Kharagpur, West Bengal. b Ramsarup Industrial Corporation (RIC) at Kalyani, West Bengal. c) Ramsarup Nirman Wires (RNW) at Durgapur, West Bengal. d) Ramsarup Utpadak (RU) at Shyamnagar, West Bengal. e) Ramsarup Infrastructure (RI), Rajasthan and f) Ramsarup Vidyut (RV) at Dhule, Maharashtra. All units are closed except Ramsarup Vidyut which is operating at about 15% capacity utilization
RAMSARUP LOHH UDYOG
INTRODUCTION
CONNECTIVITY
Project Overveiw The unit is an integrated steel plant of manufacturing billets (0.69 MMTPA) located in the industrial area of Kharagpur.The steel project was conceived for production of 0.69 MMTPA billets in two phases. The plant has facilities for manufacturing of Pig Iron, Sponge Iron, Billets, Power and Sinter. Blast furnace & Captive Power Plant and DRI plant were commissioned in 2007 and in 2009 respectively and were operated till May 2010. The other facilities viz. SMS, Sinter plant and Air Separation Plant are under implementation. The plant has about 302 acres of leasehold land mortgaged to lenders: The details of the existing and future plans at Kharagpur are as under: Location The steel plant is located in the industrial area of Kharagpur The plants of Tata Metaliks and Rashmi Metalicks are adjacent to the unit and are in operation Land The lease agreement between WBIDC and RLU was executed on September 3, 2009 for a period of 99 years for the land admeasuring about 315 acres (mortgaged land – 302 acre) The total project has been planned on two third of total land leaving the balance for greenbelt as per the environmental norms. Boundary wall has been constructed around the plant area and Drainage system has been constructed in the entire plant area
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Disclaimer: The Contents and information contained in this brochure are intended for general marketing purposes only and should not be relied up on by any person as being complete or accurate. Interested parties are advised to conduct their own due diligence before taking any decision on the information mentioned in the brochure.
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Deed of Assignment is required to be executed between the prospective investor/buyer and WBIDC for the tenure of the residual period of the earlier sub lease deed along with a 10% transfer fee needs to be paid by investor/buyer to WBIDC at the prevailing market value of the said demised land Outstanding lease rent pending since 2009 to December 2015 is Rs. 1,57, 710 /- with 12% interest for the defaulted period Rail: Main railway station is Kharagpur Junction which is about 8 km from the plant. Railway siding with 1.2 km long double tracks has been provided inside the plant area for receipt of major raw materials and dispatch of finished products. Additional space has been provided for 3rdrailway track Road: The national highway NH 6 from Kolkata to Mumbai is about 200 m from North-West corner of the plant Sea Port: Haldia port is about 125 km away from the plant site Airport: Kolkata International Airport is around 135 km away from the plant site
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Daewoo Motors India Ltd
A. Blast Furnace (BF): One 350 m3 blast furnace with Mecon Technology and Bell less top from China, Shougang The plant commissioned in 2007 and operated till May 2010 The furnace is equipped with bell less top charging system. It has a gas cleaning plant consisting dust catcher, venture with adjustable throat, scrubber, cyclone separator and waste water treatment equipment Three hot blast stoves with ceramic burners and checker bricks with maximum hot blast temperature of 1100oC Flare stack is provided for gas flaring. The cast house is equipped with one tap hole drill machine and one mud gun.The BF capacity after expansion will be increased to 700 m3and the expected time to complete the Blast Furnace plant is 30 months from start date with additional outlay. Civil foundations for BF -2 have been completed B. Direct Reduced Iron (DRI) Horizontal Kiln (500 TPD) of manufacturing Direct Reduced Iron with Outokumpu technology, Germany. The major equipments of DRI are from Tatat growth Shop/ Simplex, Bhilai The waste heat was being used for generation of power.The plant was commissioned in 2009 and operated till May 2010 Post expansion, the plant capacity will be increased to1000 TPD and the expected time to complete the DRI plant is 24 months from start date with additional outlay
C. Captive Power Plant (CPP) It has 2 turbines with capacity of 10 MW each. Blast furnace Gas fired boiler is from IGT, Delhi and Waste Heat Recovery Boiler from Cethar vessels and Turbine from Hangzhou Steam Turbine, China The waste recovery boiler and Blast Furnace gas fired boiler has steam drum, super heaters, economizers, evaporators, soot blowers It has two turbines of MCR 10 MW each with casing, rotor, assembly, bearings, governing system and barring gear Two boiler feed pumps with drive motors along with the accessories Oil lubrication system, condensate system with condenser, pump, gland steam condenser LDO storage tank with a capacity of 60 KL with pumping units and distribution pipeline Centrifugal turbo blower with a capacity of 54,000 Cu m/hr along with all auxiliaries The power demand for DR plant and Blast Furnace was around 17 MW, the surplus 3-5MW was evacuated to grid for sale. Post expansion, the power demand will be around 78 MW which may be catered by having PPA with West Bengal State Electricity Distribution Company Ltd 132 kV main receiving station wherein on single circuit 132 kV overhead lines from WBSEDCL. The 132 kV switchyard has one incoming bay for receiving power from WBSEDCL and three outgoing transformer bays connected to 100 MVA , 132/34.5 kV transformer and 20/25 MVA , 132 /6.9 kV transformer respectively The CPP (20 MW) was commissioned in 2007 and operated till May 2010
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PLANT DETAILS
OTHER INFORMATION
G. Technical Due Diligence In October 2016, M N Dastur & Co. carried out technical due diligence in regard to the above facilities and timeline for expansion of capacity form 0.33 MMTPA to 0.69 MMTPA with an additional outlay over a period of 30 months Source of Power: The plant has a waste heat recovery boiler and Blast Furnace gas fired boiler.captive power plant(CCP) with a capacity of 20 MW. The power demand of the operating unit was 17 MW and the balance of about 3 MW was evacuated to the grid The plant power requirement post expansion is estimated at 78 MW. The suitable powercontract will have to be looked into before starting of the plant Source of Water: Supply of raw water from intake pumping station from Kharagpur Municipality at Kangsabati River The intake well is around 3 km from the plant site. The plant had obtained permission from Kharagpur Municipality for withdrawal of 8.5 mgd of water from river The capacity of raw water reservoir for storing make up water is around 8-10 days.The plant has a storm water reservoir which is connected with raw water reservoir through a channel with sluice gate for storing excess storm water rainy season and reuse at suitable time Transportation: Pitch road is available within plant area Raw Material availability: Plant does not have any captive or leased mines. All the raw materials were procured from outside Raw Material Handling Facility: All the major raw materials like iron ore, coke and fluxes were received at plant site by rail through BOXN wagon Front loaders, ground hoppers, raw material bin building, conveyors are available in DRI plant area Plant has a conveying system of about 1450 m length for DR plant and about 1050 m length for BF Raw material handling system designed to cater to two BFs of capacity 350 m3 each and two DR kilns with each having capacity of 500 TPD
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D. Steel Melting Shop (SMS) One 70 MT Electric Arc Furnace from Sarrale Spain, Caster from SVAIAustria. SEN/ EMS facility has been provided and provision has been kept to install VC/VOD facility in due course The shop has been designed with a capacity of about 0.69 MTPA liquid steel, through EAF-LF Billet Caster route utilizing Hot Metal, DRI and scrap as charge mixes 40 tons ladles for handling the hot metals Primary making facilities with 70 tons/ 60 MVA electric arc furnace having tapping capacity of 70 Tons, Hot Metal capacity- 15 tons and having EBT AC furnace. It also has oxygen blowing facilities, carbon injection facilities, complete shell exchange Facilities and fume erection system The secondary steel making facility has 70 tons/ 12 MVA ladle furnace with heating rate of 4-5oC/min. It has wire feeding facilities, ladle stirring/ rinsing system, Flux and Ferro alloy addition system, Emergency stirring system, Fume extraction hood, Temperature and sampling system 1*4 strand billet caster with radius of 9/16 m, length of 22.3 m Other auxiliary facilities like hot metal and steel ladles, hot metal, scrap transfer cars, EAF shell handling and relining facilities, scrap bucket, ladle and tundish relining facilities SMS can produce high carbon/ alloy steel and other special grades of billets in sizes 130 mm / 150 mm / 200 mm billets in 12 mtr lengths.The expected time to complete the Steel Melting Shop Plant is 18 months from start date with additional outlay E. Air Separation Plant (ASP) It has one 150 MT per day Air Separation Plant from Sichuan Air Separation Plant Group (SPSAG), China The plant also has one air compressor The ASP has facilities of producing Oxygen, Nitrogen and Argon. The plant has space provision for storage of liquid Oxygen, Nitrogen and Argon.The expected time to complete the Air Separation plant is 15 months from start date with additional outlay F. Sinter Plant (SP) It has one 90 m2 Sinter Plant with capacity of 9,00,000 MTPA from China Shoungang. Sinter plant was envisaged in order to improve blast furnace productivity to match the requirement of Electric Arc Furnace and to reduce production cost of hot metal/ pig iron. Some P&M pertaining to Sinter Plant lying at the unit in packed conditions. The expected time to complete the sinter plant is 15 months from start date with additional outlay
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Statutory Dues and Other Dues: Statutory liabilities of about Rs. 260 crore at company (RIL) level (Disputed Statutory Dues- Rs. 256 crore). Unit wise break up is not available. Corporate Insolvency Resolution Process under NCLT commenced in January 2018. These liabilities stand subservient to lenders and workers dues. Status of Licenses and approvals: Based on the discussion with the promoter, all the requisite approvals/licenses need to be obtained from the concerned authority
DUES & APPROVAL STATUS
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Santosh Nangare : 9820413949
Ashfaq Patka : 9819415477
DISCLAIMER This asset is under the possession of Arcil in terms of provisions of SARAFESI Act, 2002. The contents of this brochure are intended solely for general information purposes and should not be relied upon by any person as absolute.
FOR FURTHER DETAILS CONTACT :
Asset Reconstruction Company (India) Ltd. The Ruby, 10th Floor, 29 Senapati Bapat Marg Dadar (West), Mumbai : 400028 Tel: +91 22 66581300/399 www.arcil.co.in CIN:-U65999MH2002PLC134884
