The sponsor has presented information to address these potential concerns and to ensure that the proposed project will comply fully with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts are being addressed by the sponsor/project is summarized in the paragraphs that follow.
The Usha Beltron group includes 6 manufacturing plants located in Ranchi, Jamshedpur, Agra and Bangalore. These are each discussed separately below.
Jamshedpur. Alloys and Steel Division. This large, 135 acre site includes a 25 MW captive power plant, mini steel mill and wire rod rolling mill, located in an industrial area of Jamshedpur. The power plant is coal-fired and includes a zero-discharge cooling water system. Boiler ash is deposited adjacent to the power plant and is being successfully revegetated. This power plant is managed on a "no leak/no spill" basis and is extremely clean with immaculate housekeeping; it is in full compliance with Indian environmental regulations and IFC’s air emission guidelines.
Blast furnace gases in the steel mill are recycled to a separate, small 3 MW power plant for combustion. Process water is minimal and is treated and used on site or recycled. There is no discharge off site. Slag is used as fill for construction purposes and/or is sold for use in cement production. Any scrap steel is recycled. Other facilities on this site include an electric arc furnace (EAF) for melting steel scrap and liquid pig iron for billet production. Steel billets from the blast furnace and EAF are heated in a furnace fueled with heavy fuel oil, prior to rolling into wire rods. Stack exhaust is monitored and meets Indian emission regulations and IFC guidelines.
The company has implemented the Japanese TPM quality management system in this plant and has received awards for its operation. Workers receive comprehensive and continuous training as part of this system, and health and safety aspects and energy efficiency are integral parts of it. Safety is a prime focus, with frequent safety audits, and training. Accident rates have decreased markedly and are widely posted. Housekeeping is excellent throughout all facilities. Fire extinguishers and hydrants are provided. There is a full fire station for the industrial area located adjacent to the plant. There is an emergency response plan for the entire complex.
Future development on this site will include a small, direct reduced iron (DRI) plant to produce specialty steel, along with a 7.5 MW expansion of the waste heat based power plant. These will be designed, constructed and operated in full compliance with World Bank Group guidelines.
Ranchi. Wire and Wire Rope Division. This plant occupies a 112 acre, largely rural site near Ranchi, in Jharkand state. This plant processes steel wire coils through drawing, physical and chemical treatment, and combination into wire ropes of various sizes. Fumes from wire treatment areas are treated with a wet scrubber before release. There are 2 diesel generators which are used infrequently for backup. Liquid effluents include discharge from water baths in the wire treatment area, along with cooling and other wash water. These receive primary treatment including neutralization, flocculation, settling and oxidation, and the discharge waters meet Indian standards and World Bank Group guidelines. Approximately 30% of the treated effluent is recycled to the plant. Sanitary wastes are treated in septic systems. Wire scrap is recycled, and other wastes including wastewater treatment sludge are discharged to a large waste dump area on site. While housekeeping in this plant is generally good, specific areas including those for scrap metal waste and the waste dump require improvement. Management is committed to addressing these needs. Noise levels in the plant are moderate to high in places, and the company is purchasing new equipment to reduce noise and will ensure that workers wear hearing protection.
The Japanese TPM quality system is also applied in this plant, and safety notices and instructions are clearly displayed. Fire extinguishers and hydrants are located throughout the plant. There is a dispensary with medical staff on duty, and staff receive regular health checks. This plant is planning to introduce ISO 14001 within the next year. The company provides transport for children of workers to school in Ranchi, and provides supplementary tutoring as well. The company is also supporting adult literacy programs in the local community and has a training center at the plant.
Ranchi. JFTC Division. This plant is located on a landscaped, 24 acre site and produces multi-wire telephone cables. The plant is spacious, and working conditions and housekeeping are excellent. Diesel generators are used for backup power and fuel storage is adequate. There are no other sources of air emissions. There is no process water and sanitary wastes are directed to a septic system. Health and safety is properly handled throughout, and the company has implemented the TPM quality system.
Fire safety is properly handled, with extinguishers and hydrants. This is a dispensary on site with doctors and nurses on duty. This plant has achieved ISO 14001 certification for its environmental management system.
Ranchi. Usha Ismal Division. This division is a very small machine shop, located near the main wire rope plant in Ranchi. It produces tools and small equipment for use with wire ropes. This produces no significant air or wastewater emissions. However, housekeeping in the working areas is poor and improvement in scrap metal handling is needed. Fire safety and placement of fire extinguishers needs improvement. Management will introduce and implement the TPM quality system to improve working conditions.
Bangalore. Machinery Division. This plant is located on an 8 acre industrial site, and produces machinery used for wire fabrication and rolling and related equipment. There are backup diesel-fired generators, but no other sources of air emissions. There is no process wastewater generated, and sanitary wastes are treated in a septic system. Noise levels are low. Workers are provided with personal protective equipment as required for their specific jobs. Fire extinguishers are located throughout. All metallic wastes are sold for recycling. The company supports schools in the area and provides recreational facilities for its workers and the community.
The plant has ISO 9001 certification and is planning to implement the TPM quality management system.
Agra. Rolling Mill Division. This plant is a rolling mill which processes steel billets to form reinforcing rods (rebar) for use in construction. The plant is located in the vicinity of the Taj Mahal in Agra, and as a result is subject to stringent pollution control standards. Air emissions are limited to exhaust from the gas-fired furnace used for heating the billets, and for occasional use of backup gas-fired generators. Air emissions meet the strict Indian and local standards as well as IFC guidelines. There is no process water and sanitary wastes are discharged to a septic system. There is essentially no metal waste from this manufacturing process. Workers are provided with personal protective equipment as needed, and training on safety is provided. Noise levels are low.
Other corporate initiatives of Usha Beltron Limited include the Usha Martin Learning Centre in Ranchi, which serves as a venue for management training for staff from all divisions. The Usha Martin Training Institute in Jamshedpur is a full technical training facility providing basic and advanced technical courses for workers. The company also provides core funding for a community development NGO, Krishi Gram Vikas Kendra, which is actively involved in watershed development projects in Jharkand state in the vicinity of Ranchi. It has active programs in health care and in agricultural development, including operating a research and training center.
Overall, Usha Beltron Limited has strong policies in place regarding environment and social responsibility, as well as a clear focus on workplace health and safety. Its community development activities are a model for other Indian private sector companies. All of its divisions meet the World Bank Group policies and guidelines, as well as the Indian national and local laws and regulations in the locations where it operates.
