Induction Furnace Steel Melting Plant Setup in India – Turnkey Project with Land, Power & Export Support

Start your own steel melting unit using induction furnace technology in Chhattisgarh, India’s leading steel manufacturing zone. We offer land allocation, power connectivity, and turnkey setup assistance for producing mild steel billets, MS ingots, and custom metal castings.

This energy-efficient steel plant model uses scrap iron, sponge iron, and ferro alloys—ideal for supplying rolling mills, TMT bar manufacturers, fabrication workshops, and industrial casting units. With access to Nagarnar Steel Plant (~75 km), you benefit from low-cost raw materials and proximity to NH-30 and Raipur–Jagdalpur Logistics Corridor for seamless distribution.

Whether you plan to invest in a scalable furnace-based steel unit, produce TMT bar raw materials, or build a profitable steel export business, we ensure complete support—from pollution control compliance to machinery sourcing and training manpower. Start your hot metal production plant in Bastar’s industrial zone and tap into India’s high-growth metallurgical sector.

Induction Furnace Unit – Steel Melting Plant Setup Proposal

✅Project Model: We offer land and complete setup assistance. The investor is expected to fund plant machinery and production operations. Together, we establish a fully functional steel melting unit.

📍 Location: Chhattisgarh
🤝 You Invest | We Setup | Complete Turnkey Support

Project Overview

This proposal outlines a profitable opportunity to establish a Steel Melting Unit using Induction Furnace technology in one of India's most steel-rich states – Chhattisgarh, This unit produces produce molten metal for billets, ingots, and castings. This unit serves as the backbone of steel production, supporting downstream industries like rolling mills, TMT bar plants, angle/channel units, and casting workshops.

What is an Induction Furnace?

An Induction Furnace uses electromagnetic induction to melt scrap iron, sponge iron, and metal waste. Known for being energy-efficient and cleaner than blast furnaces, it is the preferred technology for small to medium-scale steel production.

Why Chhattisgarh?

• Direct access to Sponge Iron, Iron Scrap, Ferro Alloys, and Fluxes

• Established steel manufacturing ecosystem

• Stable power supply in industrial zones

• Proximity to coal mines and transportation networks

• Supportive government policies & industrial

Product Output

✅ Final Products:

• Mild Steel Billets

• Alloy Steel Ingots

• Customized Metal Castings

• Raw Material for Rolling, Forging & Re-melting

Plant Capacity Options

The plant can be designed based on demand forecasts and investment scale. Typical capacity options include:

• Available in 3 MT, 5 MT, 8 MT, 12 MT per heat

• Scalable setup with options for multiple furnaces for continuous production

Machinery & Plant Components:

1. Core Melting Unit: Induction Furnace with Power Panel

2. Refining Unit (Optional): Ladle Refining Furnace

3. Cooling System: Water Circulation & Cooling Tower

4. Material Handling: Scrap Charging System, Ladle Handling, Overhead Crane

5. Casting Zone: Mold Zone or Continuous Casting Machine (CCM)

Strategic Location Advantage – Bastar, Chhattisgarh

• Direct Raw Material Access: The Nagarnar Steel Plant (NMDC), located just ~75 km away, ensures a continuous and cost-effective supply of billets, sponge iron, and wire rods. This minimizes raw material transportation costs and guarantees steady production cycles.

• Industrial Land : Bastar's developing industrial zones offer affordable land with high growth potential, making it ideal for new manufacturing units and steel processing plants.

• Seamless Logistics Connectivity: Immediate access to NH-30 (Kondagaon) and the Raipur–Jagdalpur Logistic Corridor enables smooth movement of raw materials and finished goods, supporting both domestic distribution and export supply chains.

• Export-Ready Business Environment: With improving infrastructure and supportive government policies, Bastar is becoming a strategic hub for steel-related industries looking to tap into national and international markets.

Strategic Highlights (At a Glance):

• ✅ Raw Material Nearby: NMDC Nagarnar Steel Plant (~75 km)

• ✅ Land + Growth Potential: Bastar Industrial Zones

• ✅ Seamless Logistics: NH-30 + Raipur–Jagdalpur Corridor

Raw Materials Required

• Mild Steel Scrap

• Sponge Iron

• Ferro Alloys & Fluxes

• Refractory Lining Materials

• Electricity (High Power Input)

Market Demand & Buyers

• Rolling Mills (TMT bars, structural steel)

• Foundries & Casting Units

• Export Clients for semi-finished steel products

• Engineering & Fabrication Workshops

Pollution Control & Compliance

• Fully compliant with CPCB & SPCB environmental norms

• Installation of Fume Extraction Units, Bag Filters, and Chimney Systems

• Slag Handling & Safe Disposal Mechanisms

Business Scope & Growth Potential

• 📈 Business Scope & Growth:

  • Backbone supplier for downstream steel plants

  • High demand in Construction, Railways, Auto & Agri sectors

  • Consistent market demand ensures stable revenue

  • Export-ready product scope

  👷 Local Development & Employment:

  • Job creation for skilled & unskilled labor

  • Boosts economy through industrial cluster development

  • Encourages ancillary service industries

Employment & Local Development

• Creates skilled & semi-skilled job opportunities

• Boosts local economy through industrial growth

• Supports ancillary businesses and service providers

Our Turnkey Support Includes

• Land Allocation, Plant Layout & Design

• Supply & Installation of Induction Furnace & Accessories

• Pollution Compliance Documentation & Setup

• Training & Operational Support for workforce

Conclusion

Establishing an Induction Furnace Unit in Chhattisgarh offers exceptional long-term profitability. With easy access to raw materials, industrial infrastructure, logistics support, and growing steel demand, this venture is ideal for investors seeking a reliable and scalable manufacturing business. We offer end-to-end support to turn this vision into reality.

❓ FAQ

Q1. What is an induction furnace steel melting unit?
An induction furnace steel melting unit is a facility where steel scrap, sponge iron, and ferro alloys are melted using electromagnetic induction to produce billets, MS ingots, and cast steel products.

Q2. What products can I manufacture using this plant?
You can manufacture mild steel billets, alloy steel ingots, custom metal castings, and raw material for TMT bars, rolling mills, and re-melting operations.

Q3. What are the raw materials required for this plant?
The key raw materials are sponge iron, steel scrap, ferro alloys, fluxes, and refractory lining. Electricity is also a major input due to high power needs.

Q4. How much investment is required for an induction furnace setup?
Investment varies by capacity. A 5–8 MT induction furnace unit typically requires ₹8–15 crore (approx. $1M–$2M), covering machinery, utilities, manpower, and initial operations.

Q5. Who will provide the land and factory layout?
We provide industrial land in Bastar, Chhattisgarh along with customized plant layout, utility planning, and construction support.

Q6. What capacity options are available for induction furnaces?
We offer units with 3 MT, 5 MT, 8 MT, and 12 MT per heat, with options for scaling up to multiple furnace lines for continuous production.

Q7. Is pollution clearance required?
Yes, pollution control measures are mandatory. We assist in installing fume extraction units, bag filters, chimneys, and slag disposal systems as per CPCB/SPCB norms.

Q8. What support do you provide for plant setup?
We offer end-to-end support including land allocation, furnace procurement, installation, compliance assistance, skilled manpower hiring, and production training.

Q9. Can this plant supply to TMT bar rolling mills?
Absolutely. The billets and ingots produced are used as raw materials for TMT bar production and other downstream steel processing units.

Q10. Is this plant suitable for export business?
Yes. With proper quality control and certifications (ISO, BIS), your plant can export semi-finished steel products like billets and ingots to Africa, Southeast Asia, and Middle East markets.

Q11. What are the power requirements for this unit?
Power load depends on capacity. Typically, a 5 MT induction furnace needs 2–4 MVA high-tension connection. We coordinate power approvals for your unit.

Q12. What is the role of sponge iron in this process?
Sponge iron is a key charge material that helps maintain purity and improves furnace efficiency when used along with scrap.

Q13. Is water required in the process?
Yes. Water is required for cooling systems, including the furnace coils, power panels, and slag handling units.

Q14. Do I need a continuous casting machine (CCM)?
CCM is optional. For higher automation and consistent billet quality, it’s recommended. We assist with CCM integration if required.

Q15. What certifications or licenses are needed?
You will need industry registration, electricity sanction, GST, MSME registration, factory license, environmental clearance, and BIS (if supplying for construction steel).

Q16. Who are the target customers for the finished steel?
Target buyers include rolling mills, construction companies, infrastructure contractors, steel casting foundries, and OEMs needing custom steel components.

Q17. How long does it take to make the plant operational?
Typically, a steel melting unit becomes operational within 6–8 months from the date of land allocation and funding confirmation.

Q18. Is training provided to workers and operators?
Yes. We provide certified training for furnace operators, safety protocols, quality testing, and equipment handling.

Q19. What makes Chhattisgarh ideal for this plant?
Chhattisgarh offers easy access to sponge iron, scrap, steel plants, coal, and logistics. Power costs are competitive and government incentives support MSME industries.

Q20. Can this plant be scaled later?
Yes. The unit can be expanded to include ladle refining, rolling mill integration, or additional furnace lines depending on market demand.