Ghughus Steel Plant: Transforming India’s Industrial Landscape

• DRI is a metallic product manufactured through the consumption of Iron ore or iron ore pellets
• DRI (Direct Reduced Iron), also known as Sponge Iron is used in making steel, through the secondary route.
• Lloyds Metal & Energy Ltd is the oldest DRI manufacturing unit in central India. 1995 Lloyds Metal and Energy Limited (LMEL) had set up its manufacturing facility near a coal-rich area near Ghugus, in Chandrapur District of Maharashtra. 
• Spread over 280 acres of MIDC (Maharashtra Industrial Development Corporation) land, this manufacturing unit started with one of the biggest DRI Kiln having a capacity of 500 tpd (tonnes per day). And subsequently added 4 more Kilns of 100 tpd. The total capacity of this plant is 900TPD.
• The facility has a power generation facility having a 30 MW power plant supported by 4X12 tph & 1X58 tph WHRB (waste heat recovery boiler) and also with a 90 tph AFBC boiler.
• This 30 MW co-generation WHRB Power Plant, is for the purpose of recovery of waste energy into productive energy. The cost of Generation is very low, considering that the plant is a Waste Energy Plant. 
• Out of this 17-18 MW is generated from Waste Heat & balance 12-13 MW is generated from Coal, Waste Coals & Char thus making the unit eco-friendly. The plant is eligible for CDM benefits
• The company uses approximately 5 MW internally and sells the balance of Power to State Boards or Power Trading companies.
• This unit also has a water storage unit and power substation. Today LMEL is one of the largest producers of DRI (sponge Iron) in central India in the most energy-efficient manner.
• Lloyds uses its iron ore lumps from its mines for DRI production 
• The plant uses coal from WCL (Western Coalfields Limited, a subsidiary of Coal India). As and when required, imported coal may also be consumed, such as RB1, RB2, or RB3 from South Africa depending on cost.
• Dolomite, in small quantities, is also required as a desulfurizing agent to control sulfur in the DRI manufacturing process.
• To optimize coal consumption, we have also installed a coal washery within the plant. The washery rejects and slurry generated is also consumed or disposed of in an environmentally ethical manner.
• The company employs over 200 professionals and about 600 blue collared workers at this unit.

• DRI is a metallic product manufactured through direct reduction of iron ore in the solid state mainly used in making steel through the secondary route. 
• In 1995, Lloyds setup a DRI manufacturing facility near the coal rich area in Ghugus, at Chandrapur District of Maharashtra, making it one of the oldest DRI manufacturing units in central India.
• Lloyds uses its own  iron ore lumps from its mines for DRI production and the plant uses coal from Western Coalfields Limited which is 100 kms from the plant. The coal is also imported as & when required and is used to manufacture DRI.
• The company employs over 200 professionals and about 600 Company & contractual workers at the plant. 
• In 2006, the capacity of DRI production was enhanced to 2,70,000 TPA.
• In 2010-11 Lloyds commissioned a 30 MW co-generation Waste Heat Recovery Based Power Plant, for the purpose of recovery of waste energy into productive energy. The cost of Generation is very low at less than Rs. 2.00 per Unit, considering that plant is a Waste to Energy Plant. 
• Out of this 17-18 MW is generated from Waste Heat & balance 12-13 MW is generated from Coal, Waste Coals & Char thus making the unit eco friendly. The plant is eligible for CDM benefits for the next 2 years.
• The company uses approximately 5 MW internally and sells the balance Power to State Board or Power Trading companies.

Lloyds Metals and Energy Limited. (LMEL) is a unit of Lloyds Group which is in the manufacturing of Sponge Iron had initially set up its first 500 TPD (Tonnes per day) kiln with the rated capacity of 1,50,000 TPA by opting OSIL-Technology in the year 1994-95 at the village-Ghugus, District-Chandrapur (Maharashtra).

Later, the unit was expanded by installing 4 x 100 TPD kilns (with Lurgi technology) in the year 2006 and achieved its production capacity of 2,70,000 TPA (Tonnes per annum). It has now become one of the biggest Sponge Iron manufacturers in Vidarbha region of Maharashtra.

The major raw materials required for production of Sponge Iron by using Rotary Kiln Process are sized iron ore and Non-coking coal. Dolomite / limestone in small quantities is also required as de-sulphurizing agent to control sulphur in the sponge iron. The details of required specification given below: