One of the Tata Steel Group’s value creation strategies is focused growth. With the aim of strengthening its position in emerging markets, the Group is increasing its crude steelmaking capacity through expansion projects at Jamshedpur and Kalinganagar.

THE BROWNFIELD EXPANSION PROJECT AT JAMSHEDPUR

The inner sheel of the new I Blast Furnace at Jamshedpur.

THE 2.9 MTPA BROWNFIELD EXPANSION IS THE LARGEST EVER UNDERTAKEN AT THE JAMSHEDPUR WORKS

Tata Steel is increasing its crude steelmaking capacity at the Jamshedpur Works from 6.8 mtpa to 9.7 mtpa via a 2.9 mtpa brownfield expansion project. The project comprises setting up:

• a 6 mtpa Pellet Plant,
• two coke oven batteries, each with 0.7 mtpa capacity,
• a 2.9 mtpa Blast Furnace and
• an LD Shop and a Thin Slab Caster and Rolling Mill (TSCR) of 2.4 mtpa to produce hot rolled coil (HRC).

THE PROJECT ALSO ENTAILS:

• expanding the captive mines of Noamundi and Joda, and
• expanding the ancillary support systems such as power, water, utilities, gas holders, raw materials handling, and plant rail and road logistics.

The additional capacity will be able to produce low and ultra-low carbon steels, electric steel, line pipe and API, dual phase and micro-alloyed grades of steel for sectors such as automotive.

The Company is taking several measures to ensure that the environmental standards prescribed by the Ministry of Environment and Forest and the Pollution Control Board are complied with. Some of the measures undertaken to this effect are:

• reduction of Respirable Suspended Particulate Matters level within prescribed norms,
• zero water discharge from the Steel Works,
• dry quenching of coke and waste heat recovery for the generation of steam and power,
• 100% utilisation of solid waste generated inside the Steel Works, and
• decongestion of the Steel Works and the city of Jamshedpur.

The expansion project provides another opportunity for Tata Steel to continue its journey towards producing ‘Green Steel’. After the 2.9 mtpa expansion, the Jamshedpur Works will have improved indices in terms of:

• using fewer natural resources per tonne of steel produced,
• a reduction in ‘Specific Energy Consumption’, and
• a reduction in ‘Specific Water Consumption’.

The brownfield expansion project has been challenging, as it requires a large volume of construction work to be carried out with minimum disturbance to the existing operations.

With a view to assimilating learnings and ensuring effective training and a smooth start-up and production build-up, the Company has deployed senior operations personnel as project team members.

Progress at the major facilities is as follows:

• Major structural and civil work has been completed at the Pellet Plant and the Blast Furnace. Equipment supply and installation are at an advanced stage;
• Civil and structural work on the second coke oven battery is in progress;
• Expansion of the iron ore mines at Noamundi and Joda is under way;
• Civil work and building structures have been completed on the LD Shop and TSCR.

The utmost care has been taken to ensure safety during the construction phase. The Company has also strived to ensure that the highest standards of quality are being observed in equipment supplies and construction work at site.

Work on all these fronts is in full swing. The major items of plant and equipment, such as the new Blast Furnace, Pellet Plant, LD Shop and TSCR, will be ready for commissioning during the 2012 financial year.

THE GREENFIELD EXPANSION PROJECT AT KALINGANAGAR, ODISHA

The Sinter Plant in its early stages of creation at the Kalinganagar site.

THE R&R PROJECT AT KALINGANAGAR HAS HELPED AFFECTED FAMILIES IMPROVE THEIR LIVING STANDARDS

The Kalinganagar Greenfield Integrated Steel Plant, Odisha will supplement the production capacities of the Jamshedpur Works, producing flat products in premium, value-added steel grades.

The 6 mtpa Greenfield Integrated Steel Plant at Kalinganagar, Odisha, will make hot and cold rolled flat products and will be built in two phases, each of 3 mtpa.

Demand for superior quality flat products in India is rising. The Kalinganagar project will complement Tata Steel’s existing production facilities through the production of premium grades like API, Dual Phase, TRIP steel, Auto-AHSS (Advanced High Strength Steel), high-end galvanised coil and cold rolled coil for general engineering.

The project will comprise major facilities like the Sinter Plant, Pellet Plant, Coke Plant, Blast Furnace, Steel Melt Shop, Hot Strip Mill, Cold Rolling Mill and Raw Material Handling units. Site work is already well under way. So far, five construction power sub-stations have been commissioned. The boundary work around the plant site has been completed. Construction road and site grading work is under progress. Piling and other civil work in the Sinter Plant, Blast Furnace and Steel Melting Shop areas has also begun.

Having obtained the necessary statutory clearances from the relevant regulatory authorities to set up the plant, the Company is now focused on managing the logistics to do with its construction. The construction site at Kalinganagar is being connected via rail linkages to the nearest railway station and the Dhamra Port to enable efficient transfer of raw material and finished products once the plant is operational. The Steel Plant will also be connected to the Daitari-Paradip Expressway and the State Highway. The power requirement for the project is to be met through two captive power plants to be installed by Industrial Energy Limited, a joint venture between Tata Steel Limited and Tata Power Limited. Additional power will also come from the installation of Top Gas Recovery turbines and the Coke Dry Quenching process as part of the Company’s environment protection strategy.

The first phase of the project is expected to be commissioned by January 2014. This phase will have a 3 mtpa crude steel capacity feeding hot and cold rolling mills. The second phase, with an additional 3 mtpa crude steel capacity, is scheduled to be completed by March 2015.

RESETTLEMENT AND REHABILITATION Inspired by the values laid down by its Founder, Jamsetji Nusserwanji Tata, Tata Steel views itself as having adopted the families displaced by the Kalinganagar project as part of its own ‘family’, the Tata Steel Parivar.

The Resettlement and Rehabilitation (R&R) scheme that Tata Steel Parivar is implementing at Kalinganagar has been designed to provide fair compensation to ensure that the displaced families are provided with practical and emotional support to enable them to adapt to their new surroundings. A committed Tata Steel Communication team, which includes members from the local Ho tribal community, is working to monitor and ensure the well-being of the members of Tata Steel Parivar.

The scheme has helped affected families improve their living standards. The income of the families who were the first to move to their new homes in 2006 has since then almost doubled, while their asset value has almost quadrupled.

Planned rehabilitation, the creation of alternative income-generating activities, the health and educational facilities provided by the Company – all of these have helped the relocated families attain the Millennium Development Goals (MDG) of the United Nations well before the 2015 deadline. The major MDGs achieved by Tata Steel Parivar include sustainable livelihoods, universal primary education, 100% institutional delivery, zero infant and maternal mortality, gender equality and women’s empowerment, and environmental sustainability.

The Company has, furthermore, set up three modern and environment-friendly relocation settlements at Trijanga, Sansailo and Gobarghati.