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The heat consumption does not exceed 1,65,000 K Cal/Ton of finished pellets using oil (Calorific value of oil 10,000 Kcal/Kg  for Magnetite Ore & 2,65,000 Kcal/Tonne for Hematite Ore).

The power consumption does not exceed 65 kw/t of finished pellets including grinding.

ESTIMATED CONVERSION COST

For 1 Tonne of Pellets made from Magnetite Iron Ore:    
Power Consumption : 65 units/Ton @ Rs. 3.50/ Unit Rs. 227.50
Fuel Consumption 14 Kgs of furnace oil @ Rs. 18/Kg
(Purchase price less MODVAT)
Rs. 252.00
Additives 10 Kgs of Pulverized Coal @ Rs. 4000/Tonne Rs.  40.00
Bentonite 10 Kgs @ Rs. 1500/ Tonne Rs. 15.00
Labor & Maintenance     Rs. 100.00
Miscellaneous   Rs. 100.00
   
TOTAL     Rs. 734.50
   
 
For 1 Tonne of Pellets made from Hematite Iron Ore:  
Power Consumption : 65 units/Ton  @ Rs. 3.50/ Unit Rs. 227.50
Fuel Consumption:18 Kgs of furnace oil @ Rs. 18/Kg (Purchase price less MODVAT) Rs.324.00
Additives 10 Kgs of Pulverized Coal @ Rs. 4000/Tonne Rs.  40.00
Bentonite 10 Kg@ Rs. 1500/ Tonne Rs.  15.00
Labor & Maintenance Rs. 100.00
Miscellaneous Rs. 100.00
   
TOTAL         Rs. 806.50 
 
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