Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

ENERGY PROFILE

BHAVNAGAR
(SIHOR)
STEEL
REROLLING MILL
CLUSTER

I
ENERGY PROFILE

BHAVNAGAR
(SIHOR)
STEEL RE-ROLLING
MILL
CLUSTER
Certificate of originality
Original work of TERI done under the project ‘Profiling of Energy-Intensive Small and Medium Enterprise (SME)
clusters’.
This document may be reproduced in whole or in part and in any form for educational and non-profits purposes
without special permission, provided acknowledgement of the source is made. SSEF and TERI would appreciate
receiving a copy of any publication that uses this document as a source.

Suggested format for citation

TERI. 2016
Energy Profile: Bhavnagar (Sihor) Steel Re-rolling Mill Cluster, Bhavnagar, Gujarat
New Delhi: The Energy and Resources Institute; 24 pp.
[Project Report No. 2015IE18]

Disclaimer
This document is an output of a research exercise undertaken by TERI supported by the Shakti Sustainable Energy
Foundation (SSEF) for the benefit of MSME sector. While every effort has been made to avoid any mistakes or
omissions, TERI and SSEF would not be in any way liable to any persons/organizations by reason of any mistake/
omission in the publication.

Published by
TERI Press
The Energy and Resources Institute
Darbari Seth Block
IHC Complex, Lodhi Road
New Delhi-110 003
India

For more information

Project Monitoring Cell
TERI Tel. 2468 2100 or 2468 2111
Darbari Seth Block E-mail pmc@teri.res.in
IHC Complex, Lodhi Road Fax 2468 2144 or 2468 2145
New Delhi – 110 003 Web www.teriin.org
India India +91 • Delhi (0)11
 Contents
Acknowledgements

Bhavnagar (Sihor) Steel Re-rolling Mill Cluster

Overview of cluster..................................................................................................................1

Product, market, and production capacities.........................................................................1

Steel re-rolling process.............................................................................................................2

Technologies employed............................................................................................................4

Energy scenario in the cluster.................................................................................................6

Energy consumption................................................................................................................7

Potential energy efficient technologies..................................................................................8

Major cluster actors and cluster development activities....................................................12

Abbreviations
 Acknowledgements
TERI places on record its sincere thanks to the Shakti Sustainable Energy Foundation (SSEF) for supporting the
project on profiling of energy intensive MSME clusters in India.
TERI team is indebted to District Industries Centre (DIC), Bhavnagar, Gujarat, and Sihor Steel Re-Rolling Mills
Association (SSRRMA) for providing data and information related to steel re-rolling mills in Bhavnagar (Sihor)
cluster. TERI extends its sincere thanks to Mr R K Vasava, Assistant Commissioner, District Industries Centre,
Bhavnagar, Gujarat, and Mr Hareshbhai Patel, President, Sihor Steel Re-Rolling Mills Association, Bhavnagar,
for organizing field visits and interactions with unit members during the study for the preparation of this energy
profile report. TERI also places on record the support provided by Mr Bhagirathbhai Sarvaiya (Vice President,
SSRRMA) and Mr Rajshekhar Iyer (Hon’ble Secretary, SSRRMA) during the study.
Last but not least, our sincere thanks to MSME entrepreneurs and other key stakeholders in the cluster for
providing valuable data and inputs that helped in cluster analysis.
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Bhavnagar (Sihor) Steel Re-rolling Mill Cluster

Overview of cluster
Bhavnagar (Sihor) steel re-rolling mills
cluster is situated in Bhavnagar district,
which is one of the 33 districts of Gujarat in
western India. Ship breaking is the primary
industrial sector in the cluster located in
Alang and Sosiya. It is also the largest ship
breaking yard in Asia. The ship breaking
industries led to development of downstream
industries such as steel re-rolling mills and
steel melting industries. The raw material
for steel re-rolling industries located in
Bhavnagar district (mainly in Sihor taluka) is
sourced from ship breaking industries in the
form of sheets. The steel melting units also
procure scrap raw material to produce billets Locational Map of Bhavnagar, Sihor and Alang
(Source: Google Map)
and ingots, which is further input material
for steel rolling mills. Some of the leading
steel re-rolling mills in the cluster include Hi-Tech Investment Castings, Sachdeva Steel Products, Navbharat Steel
Industries, Shree Ramdev Steel Industries, Arihant Industries and Chamunda Rolling Mill Pvt Ltd.

Product, market, and production capacities

The final product from steel re-rolling industries is dependent on type of raw material available to the industry. In
Bhavnagar cluster, there are two sources for raw material viz.: (i) Ship breaking industries in Alang is the primary
and major source and (ii) Steel melting units located in the cluster. The end products from steel re-rolling mills
include mild steel (MS) angles, flats, squares, and round bars. The re-rolling mills processing billets/ingot (i.e., final
product of steel melting units) produce round bars/thermo mechanically treated (TMT) bars; mills processing
sheets as raw material produce mainly angles, flats, and squares. The market for products from the cluster is mainly
located within Gujarat—tower/structure-making industries, infrastructure projects, and retail market. A majority
of the units sell their products through distributors or use brand name by distributors.
There are about 120 re-rolling mills in Bhavnagar district with an estimated installed capacity of 5.2 million tonne
(mt) per year; of these, only 90 mills are estimated to be in operation. Most of the units are located in GIDC (Sihor).
The capacities of associated reheating furnaces in the cluster vary in the range of 3.5–10 tonne per hour (tph). The
total installed capacity of the operational rolling mills in the cluster is estimated to be 3.9 mt per year. The distribution
of steel re-rolling mills in Bhavnagar cluster based on furnace capacities is given in the table below.

1
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Distribution of steel re-rolling mills in Bhavnagar (capacity wise)

Capacity Capacity (tph) Number of units
Type 1: up to 30 feet furnace 3.5 26
Type 2: 30–50 feet furnace 6.0 49
Type 3: More than 50 feet furnace 10.0 15

The actual production of the cluster during 2015–16

was estimated to be 1.33 mt per year (28% of installed
capacity). The estimated annual turnover of the cluster is
valued to be `3,200 crore. The linkage between ship scrap
yards, steel melting units, steel re-rolling industries, and
products has been shown in the following figure.

Steel re-rolling process

Most steel products from casting operations are further
processed to produce finished steel products in a series of
rolling and finishing operations. There are two common
shaping processes, namely (i) hot rolling and (ii) cold
rolling. In general, rolling process includes application
Linkage between industries
of mechanical forces to metal surfaces through a series
of rolls to produce specific shapes and sizes by reducing
widths and thicknesses. The ingot or continuous casting is hot rolled into blooms or slabs, which are the basic feed
material for production of a wide range of steel products. Many of these products will be the starting material for
subsequent manufacturing operations, such as forging, sheet metal working, wire drawing, extrusion, machining, etc.
Hot rolling involves reheating of metal sheets/slabs/ingots/billets close to soaking temperature and rolling them
into thinner and longer products through successive rolling mill stands. The steel slabs/billets are heated to about
1,150°C–1,250°C depending on type of raw material in reheating furnaces. Mainly pusher hearth furnaces are
used in the cluster with coal as primary fuel.
The heated sheets/billets are rolled in a roughing stand, in which the thickness is reduced in various passes, back
and forth. The length of the slab increases from 2–4 metres to an intermediate slab, which is up to 20–25 metres
long. This is rolled down between 50–20 mm in only one pass through a number of stands. The speed increases
after every stand, which is highest at the end. A typical process flow of hot rolling is shown in the figure.
The major process steps involved in the Bhavnagar Steel Re-rolling Mill Cluster are described below.

Raw material preparation and shearing

In raw material preparation, the scrap metal sheets are segregated as per final product profiles. The main criteria
for segregation of raw material include thickness and length. The sheet is cut to desired sizes in cutting processes,

2
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

in which a piece of sheet metal is separated with application of force.

The most common type of cutting process is shearing using shearing
machines and gas cutters. The common size of metal sheet used is
5–6 feet length. The units which use billets as raw material also use
gas cutting machines for cutting billets. The waste or unused sheet
after cutting is sold to the steel melting units.

Charging and reheating

Reheating of steel is the first step in hot rolling that helps in achieving
sound mechanical and chemical properties of products. In reheating
process, the material is stacked to hearth at charging end of the
furnace. A mechanical type pusher is used to push the material
inside the furnace at a constant speed. Almost all the furnaces
in the cluster are of continuous type with manual charging and Raw material preparation
discharging operations.
In reheating furnace, the temperature of soaking zone is set close
to 1,250°C. The temperature requirement is dependent on sheet
thickness and final finishing required. The sheets/billets are heated in
the reheating furnace to prepare them for subsequent rolling. If the
metal is too cold, then it will be too hard, and it will crack and lead to
stresses in rolling equipment. If the metal is too hot, then cracking,
surface melting, and blemishes will occur when rolled. If the metal Pusher hearth reheating furnace
is not heated uniformly, uneven deformation may occur, resulting in
poor quality and perhaps derailment. Therefore, the retention time of
the material inside furnace and corresponding temperature profile of
heating and soaking zones are key parameters in rolling mills.

Rolling and finishing

In rolling, the shape of metal is changed due to plastic deformation
Material charging (pusher heart)
by passing between rolls, that is, reduction of cross-sectional area or
general shape of the metal. Most of the rolling mills in the cluster have
employed semi-automatic reheating furnaces (14–16 inch size). Two-high and three-high mills are generally used
for initial and intermediate passes for initial and intermediate passes during hot rolling, while four-high and
cluster mills are used for final passes. The primary stand/roughing stand is provided with 800 hp slip ring motor
(most common installation) and intermediate stands (9 inch size) is having motor capacity up to 800 hp. The
capacity of electric motor installed in final stand or finishing is having 250 kW. The most common type motor in
finishing section is of DC type. The rolling process in the cluster is manual. In this, the operator takes out material
from soaking zone using manual toggle clamp and feed into primary roller of four rough rollers and subsequent
into roughing rollers. The speed of the mill and product quality is dependent on skill of the operator. The function

3
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

of finishing stands is to provide the desired shape and gauge to the

product. After final section, the product goes for cooling and end
cutting. The detailed process steps followed by cold storage facilities
are given in the following sections.

Technologies employed
Reheating furnaces are the major consumers of thermal energy.
The operational characteristics of reheating furnaces play a vital
role in overall milling process. The reheating furnaces consist of
combustion equipment like coal pulverisers, burners, combustion air
blower and waste heat recovery (WHR) systems. Other associated
equipment includes charging and discharging system, such as pusher
and loaders. A typical reheating furnace comprises preheating,
heating, and soaking zones to gradually increase and maintain
desired temperature profiles for milling process. Cutting machines, Rolling process
trimming machines, and tools are used in rolling mills. Most of the
rolling mills are open train, 2-high or 3-high type. The description
of the technologies/major equipment used in the cluster is described
below.

Reheating furnace
The reheating furnaces installed in the cluster are continuous-type
pusher hearth furnaces having capacities 3.5–10 tph. The charge or
stock is introduced at one end (‘feeding or charging’), which moves Cooling and end cutting
through the furnace and is discharged at the other end (‘discharge
doors’). The length of the furnace is in the range of 30–85 feet and
width of the furnace is 6–7.5 feet. The primary fuel used in the
furnaces is pulverized coal (size up to 250 meshes), which is charged
using the combustion air (primary air). The furnace combustion
system (coal charging mechanism) takes the temperature of soaking
zone as reference for increasing or decreasing the charging rate of
coal. However, this system is by-passed in majority of the units.
The temperature of soaking zone is observed in the range of
1,130oC–1,280oC. However, this temperature is not maintained Furnace control system
constantly throughout the operation and may be attributed mainly to
lack of automation of combustion control system. The heat losses from surfaces and preheated air pipe lines were
observed to be high, mainly due to poor or no insulation.

4
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Pulverizer: The coal pulverizer units installed in the

cluster of the size of 20–45 inch having electric motor
capacity of 50–100 hp. A cyclone system is associated to
recover fine coal particles, which are further stored in
the coal charging hopper.

Air preheater: Waste heat recovery (WHR) systems are

widely used in steel reheating furnaces to recover heat
losses in flue gases and improve efficiencies. As flue gas
heat losses account for a major share in overall heat inputs
to furnaces, it is beneficial to use WHR systems such as Pulverizer system
air preheater. However, most of the units in Bhavnagar
cluster do not have WHR systems, thereby operating
the furnaces inefficiently. The flue gas temperatures of
reheating furnace are observed to be quite high, in the
range of 650°C–800°C in most of the units. Even in one
of the units wherein WHR system has been installed, the
performance of the system was not good, which may be
attributed to poor designs and improper capacities.

Waste heat recovery system

Rolling mill
There are three types of rolling mills in common use, that
is, 2-Hi, 3-Hi, and 4-Hi mills. This classification is based
on the mode of arranging rolls in housings. Typically, one
2-Hi stand consists of two rolls, arranged one above the
other. Similarly, a 3-Hi mill has 3-rolls and a 4-Hi mill has
4-rolls. For specific use, 6-Hi, 12-Hi, or 20-Hi mills are
also designed. Mills having six or more rolls are generally
termed as cluster mills. In the cross-country mills, the roll
stands are located in a scattered manner. These mills are Hot rolling process

5
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

based on the concept of continuous rolling, but the stands are placed so far apart that the piece must leave one set
of rolls before entering the next.
Mill housings: Mill housings are one of the most important structures of rolling mills since they hold mill assembly
in position. Housings are elements in a rolling mill that hold chock assemblies, adjusting and other mechanisms,
and retain proper positions. Thus, their construction and dimensions have to take into account sizes of related
elements. The forces that act on the rolls during rolling are completely transferred on to them through the nuts of
the adjusting mechanism. The housing of the rolling stand requires high rigidity, sufficient strength for taking the
loads, simplicity of design, and minimum cost of production. One-piece cast housings of simple form (rectangular
section) are used for heavy roughing mills, for example, blooming, slabbing, billet, and plate mills.
Rolls: Rolls are the most vital component of a rolling mill. The deformation of metal work piece is directly
accomplished by rolls. The rolling stresses are first applied on rolls and then transmitted to other sections of a
mill. Consequently, the rolls had to be harder and more resistive to deformation than the metal under processing.

Power supply, distribution, instrumentation, and control system

»» The electrical power supply and distribution system in mils mainly include transformer, circuit breakers, and
control panels.
»» DC drive or Variable Voltage Variable Frequency (VVVF) drives for regulating speed of AC motors particularly
in finishing mills is the latest trend.
»» PC–PLC instrumentation and control system for automation of front and end cropping shears, furnace control
system, flying shear, etc. with valve actuators.

Lighting system
The lighting provided in different plant areas is mainly mercury vapour lamps (250–500 watt). In office areas,
mainly compact fluorescent lamps (CFL) and fluorescent tube lights (T-8/T-12) are used.

Energy scenario in the cluster

Coal is the major source of energy and is procured from local distributors. Electricity is supplied by Paschim
Gujarat Vij Company Limited (PGVCL). The power outage is very minimal in the cluster, and hence diesel
consumption is negligible. The details of major energy sources and tariffs are given in the table below.
Prices of major energy sources
Source Remarks Price
Electricity High Tension connection (HT) `8.50 per kWh (inclusive of energy, demand charges, other penalty/
rebate, and electricity duty)
Low Tension connection (LT) `9.00 per kWh (inclusive of energy, demand charges, and electricity
duty)
Coal From local market `6,000 per tonne (price subjected to market fluctuations)
Source: http://www.pgvcl.com

6
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Energy consumption
Unit level consumption
The primary energy sources used in hot rolling mills may be categorized into two parts, the first part includes
the energy used for raising the temperature of the feed to desired value (generally 1130oC–1280 oC) i.e. reheating
furnace and the other part is the energy required for formation and shaping of hot product. Most of the reheating
furnaces in the cluster operate on coal, whereas electricity is the primary energy source for milling and auxiliary
operations. The major energy consuming area is reheating furnace that consumes about 80–85% of total energy
input to the facility. The electricity share in total consumption varies in the range of 15%–20%. The average unit
capacities and their energy consumption in the cluster are given in the table below.

Electricity Coal Total energy Total CO2 Annual energy

Production category
(kWh/yr) (tpy) (toe/yr) emissions (tpy) bill (million `)
Type 1: (up to 30 feet furnace) 1,268,750 744 526 2,917 13.5
Type 2: (30–50 feet furnace) 1,875,000 1,288 883 4,736 21.2
Type 3: (more than 50 feet furnace) 2,500,000 2,125 1,405 7,231 30.9

The average share of thermal and electrical energy consumption at cluster level is estimated to be 83% and 17%,
respectively. The thermal and electrical energy consumption of different capacities of mills is shown in the pie
chart given below.

Share of thermal and electrical energy consumption by various capacities of mills

7
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Cluster level consumption

The annual electricity and coal consumption of the Bhavnagar (Sihor) re-
rolling cluster is estimated to be 162 million kWh and 114,304 tonnes,
respectively, which is equivalent to 77,974 tonne of oil equivalent (toe) per
annum. The total carbon emission of the cluster is about 416,304 tonne of
CO2. The overall energy bill of cluster is estimated to be `1,855 million.
The type 2 (30–50 feet furnace) re-rolling mills accounts for about 55% of
total energy consumption in the cluster (Figure).

Share of energy consumption in re-rolling mill

Energy consumption of the Bhavnagar (Sihor) re-rolling mill cluster

Electricity Total CO2
Coal Total energy Annual energy bill
Production category (million emissions
(tpy) (toe/yr) (million INR)
kWh/yr) (tpy)

Type 1 (up to 30 feet furnace) 33 19,561 13,824 76,712 355.7

Type 2 (30–50 feet furnace) 92 62,868 43,075 231,123 1,035.4

Type 3 (more than 50 feet

38 31,875 21,075 108,469 464.1
furnace)
Total 162 114,304 77,974 416,304 1,855
Source: Field survey and interaction with unit entrepreneurs

Potential energy efficient technologies

The basic concepts of energy conservation in reheating furnaces include optimization of combustion,
rationalization of heating and cooling, minimization of structural heat losses, recovery of waste heat in flue gases,
and recovery of waste heat in flue gases. The potential energy-efficient technologies that can help in improving
the performance of Bhavnagar steel rolling mills are given below.

8
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Energy optimization, maintenance practices, and control system in reheating furnace

Centralized and high efficiency recuperator

The quantity of heat taken away from a reheating furnace by high temperature flue gases (650oC–800oC) is quite
large. This can be reduced by recovering waste heat available in outgoing flue gas. One of the conventional,
economical, and convenient methods is use of centralized recuperator system for preheating of combustion
air. Recuperator is a mechanical device in which heat exchange takes place between the flue gases and the
combustion air through metallic or ceramic walls. Ducts or tubes carry the air for combustion for preheating
whereas the other side contains the waste
heat (flue gas) stream.
There are many types of the waste
heat recovery recuperator depending
on the application. The most common
types of recuperator include metallic
radiation, convection, hybrid and ceramic
recuperators. The most commonly used
recuperator in reheating furnace is
convection type. Convection recuperator
(also referred to as ‘flue’ or ‘canal’
recuperator) is tubular heat exchanger
that utilizes convection heat transfer to
Air preheat temperature vs.. flue gas temperature

9
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

preheat combustion air for the purpose of saving fuel. By recovering heat from hot flue gas and transferring it
to combustion air, fuel consumption can be reduced up to 25%. The average temperature of the flue gas in the
reheating furnace of the cluster is about 750°C, and installation of recuperator may increase the temperature of
the combustion air to about 350°C–365°C. The energy-saving potential with high-efficiency recuperator is about
20%–27% with a simple payback period of 12–16 months.

Excess air optimization and VSDs on combustion fans

The quantum of waste heat generation
is directly proportional to the
quantity of air used for combustion
of fuel. Air, slightly in excess of ideal
stoichiometric (or theoretical) fuel
to air ratio is required for complete
combustion. It is dependent on type of
fuel used. However, excess air beyond
optimum range may substantially
decrease combustion efficiency as it
leads to generation of excessive hot
waste gases. The effect of excess air
level and flue gas temperature on Excess air versus dry flue gas loss
dry flue gas losses is shown in the
figure below.
Controlling oxygen levels and using Variable
Speed Drives (VSDs) on combustion air fans
associated with reheating furnaces help in
optimizing combustion in the furnace. The use of
VSDs on combustion air fans in reheating furnace
also helps to control oxygen levels, especially
during variation in furnace production rate. The
fuel and electricity savings in reheating furnace
through optimization of excess air level depend on
load factor of the furnace and the control strategies
applied. The estimated energy saving is 4%–9% of
thermal energy. With an estimated investment of
Effect of air to fuel ratio on thermal efficiency
`5.5–`7.5 lakh for complete system, the simple Source: Detailed field assessment studies in reheating furnaces in
payback period is about 18 months. Indonesia, UNEP 2014

Improved insulation and refractories of reheating furnace

The efficiency of a furnace is directly dependent of the method of combustion and heat stored within the furnace
structure. The heat loss from furnace walls and material discharge doors is about 3–5%, which is significant.

10
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

These heat losses include

(i) Radiation loss through
openings and furnace surface,
and (ii) Heat accumulation
loss to internal insulation
and supports composing
the furnace body. The heat
accumulation loss can be
ignored for a continuous
operation furnace having
minimal change in operating
temperature. Reduction in
radiation heat loss from
furnace surfaces can be
achieved by enhancing the
insulation. This includes
(i) Covering of internal wall
surface with ceramic fibre
insulation, and (ii) Covering
Effect of insulation in a furnace: Heat loss vs. surface temperature
external wall surface with
ceramic fibre or rock wool insulation. The potential energy savings for insulating a continuous furnace were
estimated to range from 2%–5%. However, the capital investment required for reinforcement of insulation may be
higher indicating long payback period.

Energy efficiency drives for rolling mills

Motor systems, which include motor driven units, such as rolling mills, combustion air blowers, sharing machine,
and material handling equipment consume substantial amount of energy used in steel rolling mills. About 70%
of the energy input to motor-driven systems is lost due to system inefficiencies. Rolling mill applications demand
high precision and high overload ability. They are characterized by quickly changing loads, rapid alternation
between driving and braking actions, constant torque in a wide speed range, and large torque steps. High-efficiency
drives are the most suitable solutions in metal industries. With the use of accurate controlling and energy efficient
drives, the industry can optimize production cost, minimize maintenance, enhance reliability, and ensure quality
of end product. Energy-efficient motors reduce energy losses through improved design, better materials, tighter
tolerances, and improved manufacturing techniques. With proper installation, energy-efficient motors can also
stay cooler, may help reduce facility heating loads, and have higher service factors, longer bearing life, longer
insulation life, and less vibration.
The use of energy-efficient motors such as IE2 and IE3 motors in milling auxiliaries can improve efficiency up to
5%–6%. The initial investment for high-efficiency motors is about 15–20% more than the standard efficiency class
motor. The simple payback period will be up to 30 months.

11
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Computerized roll pass design

Shape rolling is widely used in material processing of structural and mechanical parts as it possesses good
mechanical properties and high productivity. However, due to involvement of complicated mechanics in shape
rolling, it has made the process design an art of experience. Therefore, it is very common to trust expert decision
in process design, particularly for complicated shapes. In general, for simple shapes, empirical relationships
using computerized numerical controls (CNC) can considerably reduce experience-oriented design procedure.
The primary objectives and advantages of the roll pass design are:
»» Production of correct profile within tolerance limits with good surface finish (free from surface defects)
»» Maximum productivity at lowest cost and optimum energy utilization
»» Minimum roll wear and easy working.

Lighting system
The lamps/lighting system provided in the cluster is mercury vapour lamp of (250–500 watt) and fluorescent tube
lights (T-12/T-8). Replacement of existing lighting with most advanced light sources and fixtures may save up
to 50% on lighting energy use, while benefiting from the best in lighting quality. Energy-efficient lighting offers
additional benefits, such as reduced load on air conditioning and ventilation system, better life, and is compatible
with advance control and automation. The existing mercury vapour lamps may be replaced by induction lamps or
LED lamps (saving up to 65%) and fluorescent tube lights (T-12/T-8) may be replaced by either LED tube light or
fluorescent tube light (t-5) type. The estimated saving by replacement of existing tube lights will be up to 35%. The
overall project payback period will be about 12 months.

Major cluster actors and cluster development activities

Sihor Steel Re-Rolling Mills Association
Sihor Steel Re-Rolling Mills Association has about 76 steel re-rolling units as members and plays an active role
to sustainability of steel re-rolling units in term of raw material availability, product development, technology
upgradation, and exposure to energy efficiency and cost-effective practices.

District Industries Centre

The District Industries Centre (DIC) undertakes various programmes for investment promotion at the grass root
level, such as organizing seminars workshops, extending support for trade fairs and exhibitions organized by
various Industries associations. All the services and support required by for MSME units under the single roof of
the DIC.

Gujarat Energy Development Agency

The Gujarat Energy Development Agency (GEDA) is working in the field of renewable energy development
and energy conservation in Gujarat. It is the state nodal agency (SNA) for the Ministry of New and Renewable

12
 Energy Profile Report - Coimbatore Pump Set Cluster

(MNRE) and the state designated agency (SDA) for Bureau of Energy Efficiency (BEE). As an important part of
the Annual Action Plan submitted for energy conservation activities, GEDA organizes awareness workshops
for industrial consumers all over the state. The main objective of such workshop is to generate awareness
among MSMEs on energy conservation and motivate them to carry out energy audits in their existing scheme.
The workshops are conducted by GEDA authorized energy auditors having relevant expertise and experience.

13
 Energy Profile: Bhavnagar (Sihor) Steel Re-Rolling Mill Cluster

Abbreviations
Abbreviation Full form
BEE Bureau of Energy Efficiency
CFL Compact Fluorescent Lamps
CNC Computerized Numerical Controls
DIC District Industries Centre
GEDA Gujarat Energy Development Agency
HT High Tension connection
kL Kilolitre
kWh kilowatt-hour
Lit Litre
LT Low Tension
MNRE Ministry of New and Renewable Energy
mt million tonne
PGVCL Paschim Gujarat Vij Company Limited
SDA State Designated Agency
SEC Specific Energy Consumption
SNA State Nodal Agency
SPC Specific Power Consumption
SSRRMA Sihor Steel Re-Rolling Mills Association
t tonne
TMT Thermo Mechanically Treated
toe tonne of oil equivalent
tph tonne per hour
VSDs Variable Speed Drives
VVVF Variable Voltage Variable Frequency
WHR Waste Heat Recovery

14
Note
About TERI
A dynamic and flexible not-for-profit organization with a global vision and a local focus,
TERI (The Energy and Resources Institute) is deeply committed to every aspect of sustainable
development. From providing environment-friendly solutions to rural energy problems to tackling
issues of global climate change across many continents and advancing solutions to growing urban
transport and air pollution problems, TERI’s activities range from formulating local-and-national
level strategies to suggesting global solutions to critical energy and environmental issues.
The Industrial Energy Efficiency Division of TERI works closely with both large industries and
energy-intensive micro, small, and medium enterprises (MSMEs) to improve their energy and
environmental performance.

About SSEF
Shakti Sustainable Energy Foundation (SSEF), established in 2009, is a Section-25 not-for-profit
company, which aids design and implementation of clean energy policies that support promotion
of air quality, energy efficiency, energy access, renewable energy, and sustainable transportation
solutions. The energy choices that India makes in the coming years will be of profound
importance. Meaningful policy action on India’s energy challenges will strengthen national
security, stimulate economic and social development, and keep the environment clean.
Apart from this, SSEF actively partners with industry and key industry associations on sub-
sector-specific interventions towards energy conservation and improvements in industrial energy
efficiency.

About SAMEEEKSHA
SAMEEEKSHA (Small and Medium Enterprises: Energy Efficiency Knowledge Sharing) is a
collaborative platform set up with the aim of pooling knowledge and synergizing the efforts of
various organizations and institutions — Indian and international, public and private — that are
working towards the development of the MSME sector in India through promotion and adoption
of clean, energy-efficient technologies and practices. The key partners of SAMEEEKSHA platform
are: (i) Swiss Agency for Development and Cooperation; (ii) Bureau of Energy Efficiency;
(iii) Ministry of MSME, Government of India, and; (iv) The Energy and Resources Institute.
As part of its activities, SAMEEEKSHA collates energy consumption and related
information from various energy intensive MSME sub-sectors in India. For further details about
SAMEEEKSHA, visit http://www.sameeeksha.org