Indian ferro alloy industry is passing through one of its worst periods by the process of economic liberalization. Its production in our country is coming down mainly due to inadequate indigenous demand, non-availability of exports and high power cost as compared to other competing countries. The indigenous calcium silicide technology developed at National Metallurgical Laboratory; Jamshedpur could not be commercialized on account of thenew economic liberalization policy of Government of India

Ganguly, R G

Mathur, S B

Vaish, A K

English

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Ferro Alloy Industries in the Liberalised EconomyEditors : A. K. Vaish, S.D. Singh, N. G. Goswarni and P. RamachandraraoNML Jamshedpur 831007, 1997, pp. 130-138Economic Liberalization - A Stumbling Blockin the Commercialization of IndigenousCalcium Silicide TechnologyA.I. VAISH, S.B. MATHUR and R.G. GANGULYNational Metallurgical Laboratory, Jamshedpur - 831 007, IndiaABSTRACTIndian ferro alloy industry is passing through one of its worst periods by theprocess of economic liberalization. Its production in our country is comingdown mainly due to inadequate indigenous demand, non-availability ofexports and high power cost as compared to other competing countries. Theindigenous calcium silicide technology developed at National Metallurgi-cal Laboratory; Jamshedpur could not be commercialized on account of thenew economic liberalization policy of Government of India.Keywords . Indigenous technology, Calcium silicide, Economic liberaliza-tion , Ferro alloy industry.INTRODUCTIONPresently, the Indian ferro alloy industry is passing through one of its worstperiods. The reason for its growth until the recent whirlwind of change was self-sufficiency combined with protection from competition by limiting new produc-tion units and restricting imports. But these props are now being withdrawn, cutdown or replaced, and the ferro alloy industry has to meet the challenge. No doubtdespite the emerging and existing difficulties and the recession in the steel industryas well as the shortage and price of power, the bulk ferro alloy industry hasmanaged fairly well all these days and is exporting some of the bulk ferro alloyssuch as charge chrome, ferro chrome, silico manganese and ferro manganese. Innear future even units in small scale sector may pose a significant threat to thelarger established producers since their output is increasing day by day.The technical know-how of the process of production of calcium silicide ispresently restricted to a few advanced countries only, and the entire demand ofcalcium silicide in our country is met by imports at about 2000 tonnes per annum.129A.K. VAfSH, S.B. MATHUR and R .G. GANGULYIt was thought that the indigenous production of calcium silicide shall be able tosave considerable amount of foreign exchange. In view of this fact NationalMetallurgical Laboratory carried out several investigations to develop technologyfor producing standard grade calcium silicide making use of indigenous rawmaterials in its pilot scale 500 KVA submerged arc furnace adopting differentprocess routes. With its consistent efforts, it has perfected the technology for theproduction of standard grade calcium silicide with a view to transfer it to IndianIndustries to save foreign exchange.DEVELOPMENT OF CALCIUM SILICIDE TECHNOLOGYIndustrially calcium silicide is produced adopting two processes calciumcarbide process and quick lime process. In calcium carbide process, the reductionof'silica with carbon takes place in the presence of calcium carbide. The charge mixconsists of quartzite, calcium carbide and a mixture of coke and charcoal, while inquick lime process, calcium silicide is produced in a single stage, omitting theproduction of calcium carbide. This process requires a very precise proportioningof the charge. The charge mix consists of quartzite , calcined lime and reductantnamely charcoal . The least shortage of the reducing agent intensifies the formationof slag from CaO and SiO „ and when it is in excess , the depth of immersionelectrodes into the charge is reduced very quickly , causing an intensive evapora-tion of calcium and silicon and cooling of many parts of the furnace. This inturncauses the accumulation of carbides of calcium and silicon . The quick lime processis preferred compared to calcium carbide process since it is more efficient.National Metallurgical Laboratory carried out several smelting campaigns for theproduction of calcium silicide adopting different processes making use of indig-enous raw materials in its pilot scale 500 KVA submerged arc furnace . Invariablymultigrade calcium silicon alloys are produced in real practice. The production oflower grade calcium silicon alloys [Ca 520%] can be minimized by precise controlof raw material quality and smelting parameters . The use of lancing tubes alsoincreases the iron content in the alloy, thereby decreasing the percentage ofcalcium in the product. With raw materials of specified composition and usingarcing method for the opening of tap hole, calcium silicide of 30% Ca grade couldhe produced continuously . A small amount of lower grade calcium silicon alloys,if produced during the smelting operation , can be used in foundries for inoculationof cast iron to alter the morphology of graphite.ECONOMIC VIABILITY OF THE TECHNOLOGYThe raw materials required for the production of calcium silicide are indig-enously available at reasonable cost. However, the cost of power required for130Economic Liberalization -A Stumbling Block in the Commercialization...smelting accounts about 50% of the total cost of the product. The total costcomprising of capital cost, raw materials and operation cost and manpower cost isconsiderably lower than the imported cost and the return on investment works outto.be more than 35%.Planning for Commercial Trial at VISL, BhadravatiNational Metallurgical Laboratory successfully demonstrated the indigenoustechnology as a part ofTATA -NML interactive programme and optimized varioussmelting parameters . This investigation was financially supported by TATASTEEL during 1991 . In the subsequent years, NML and TATA STEEL decided toconduct large scale trials jointly in a commercial scale submerged arc furnace atVISL, Bhadravati . After discussing various techno-economic aspects of thisproject among the representatives of NML, TATA STEEL, SAIL [RDCIS] andVISL, Bhadravati , it was decided to demonstrate this technology in one of theindustrial scale submerged arc furnaces at VISL, Bhadravati making use ofindigenous raw materials by conducting 45 day smelting compaign . It was alsoagreed upon that the major expenses of this commercial compaign shall be met byTATA STEEL.Impact of New Economic Liberalization PolicyThe new economic liberalization policy of Government of India has hit hardferro alloy industry rather than helping it in its growth. It has permitted duty freeimports of raw materials for the production of ferro alloys for export. Under this,the steel industry can import scrap, coke, limestone and additives like ferro alloys,aluminium, petroleum coke and refractories duty free. It is obvious that under thisarrangement steel producers will import as much as ferro alloy as possible. Theliberalization also means that new ferro alloy producers can start up at their will.In near future there is likelihood that new steel plants will install facilities forproducing ferro-alloys along with their own captive power plants. Also thecustoms duty has been reduced (i) on ferro alloys except ferro nickel and ferromolybdenum from the existing 50% to 30% in 1994 and (ii) on ferro nickel andferro molybdenum from the existing 30% to 20%.It is well known that ferro alloys is a power intensive industry and uses poweras a raw material. Power tariff in India is high compared to the power tariffavailable to competitors in other parts of the world. This high power tariffdiscourages any production of ferro alloys even for export. As a result several ferroalloy producers propose to set up their own captive power plants to ensure powersupply to their units at reasonable rates though they will have to incur huge capital131A.K. VAISH, S.B. MATHUR and R .G. GANGULYcosts. Thus several ferro alloy producers have reduced their production due to highpower cost and non-availability of exports. Under these prevailing circumstancesTATA STEEL continued to import calcium sit icide from abroad with ease at lowerrates and has gone back from its decision to invest for commercial trials at VISL,Bhadravati. Further under VABAL scheme excessive imports of ferro alloys ispossible and Indian ferro alloy producers feel uncompetitive due to theaggresive" entry of the commonwealth states (CIS) countries in the global marketwith large quantities of cheaper alloys.ACKNOWLEDGEMENTThe authors are grateful to Professor P. Ramachandrarao, Director NationalMetallurgical Laboratory, Jamshedpur for encouragement and approval to presentthis paper.CONCLUSIONThe new economic liberalization policy has jeopardised the commercializationof the indigenous developed technology National Metallurgical Laboratory shallcontinue its efforts to search some sponsor for commercializing this well proventechnology either at India or abroad.132

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