What is a silico manganese project report?
A silico manganese project report is a detailed project report (DPR) for a smelter that reduces manganese ore and ferro manganese slag with coke in a submerged arc furnace. It sets out the charge mix, power use, furnace and machinery, approvals, project cost, five-year projections, DSCR and break-even that lenders and investors check.
Steel plant groups, ferro alloy producers and new promoters use it to size a furnace and raise a term loan; banks use it to test whether the plant can carry its power bill and repay.
Also known as: silicomanganese plant project report, project report on silico manganese, silico manganese business plan, SiMn plant DPR, ferro silico manganese project report.
Silico manganese manufacturing plant cost in India
Our sample report models a 14 MT per day plant running 330 days a year, which is 4,620 MT per year. It starts at 60% of capacity, reaches 80% in Year 5 and sells at ₹75,400 per MT.
Larger furnaces cost far more. A 2022 pre-feasibility report put a 5 MVA ferro alloy plant in Chandrapur, rated for 10,000 tonnes a year of silico manganese, at ₹1,575 lakh. MOIL's 18 MVA plant near Nagpur, for 25,000 tonnes a year, was costed at ₹136.44 crore.
| Land and site development | 50.43 |
|---|---|
| Building and civil works | 196.11 |
| Plant and machinery | 445.91 |
| Other fixed assets | 56.72 |
| Contingencies | 32.10 |
| Preliminary and pre-operative | 19.53 |
| Working capital margin | 85.72 |
| Total | 886.52 |
| Promoter's contribution (25%) | 221.63 |
|---|---|
| Term loan from bank (75%) | 664.89 |
| Cash credit limit (separate) | 257.16 |
| Total project cost | 886.52 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. Sample figures are illustrative; the 5 MVA and 18 MVA costs are from public filings of 2022.
Silico manganese manufacturing process
Silico manganese is made by carbothermic reduction in a three-electrode submerged arc furnace. The furnace runs round the clock; it is tapped at intervals, not batch by batch.
- Charge preparation
Manganese ore, ferro manganese slag, coke, coal, quartz and dolomite are screened to size, as fines choke the burden and raise power use.
- Weighing and charging
A batching system weighs each material to the charge recipe and feeds it through chutes around the electrodes.
- Smelting
Electric energy keeps the bath at about 1,600–1,650 °C, where carbon reduces manganese oxide and silica together into the alloy.
- Tapping
Metal and slag are tapped together through the taphole into ladles at fixed intervals.
- Slag separation and casting
The lighter slag floats off and goes to the slag yard; the metal is cast in beds or moulds and left to solidify.
- Crushing and grading
Cooled cakes are broken and screened to the lump size each steel plant specifies.
- Analysis and dispatch
Each tap is sampled for manganese, silicon, carbon and phosphorus, then packed in jumbo bags by grade.
Which grade and furnace size should you plan for?
Most new units make the standard high carbon grade, which needs the least power per tonne. Medium and low carbon grades sell at a premium but need more silicon and more refining.
| Standard grade | About 60–70% manganese, 16–28% silicon and 1.5–2.5% carbon, the composition the Indian Bureau of Mines gives for silicomanganese |
|---|---|
| Medium carbon grade | Example listed for an Indian plant: 54–56% manganese, 22–25% silicon, 0.2–0.5% carbon |
| Low carbon grade | Example listed for an Indian plant: 53–55% manganese, 25–28% silicon, 0.15–0.2% carbon |
| Furnace size | Small units use a single furnace of about 5 MVA; larger plants run 9 MVA to 18 MVA or more for lower cost per tonne |
| Electrodes | Self-baking Soderberg electrodes, fed with electrode paste as they are consumed |
| Product standard | IS 1470:2025, Silicomanganese specification, issued by the Bureau of Indian Standards |
Grade compositions are from the Indian Minerals Yearbook 2020 (IBM). Your buyers' specifications decide the grade.
Raw materials and charge mix for silico manganese
Manganese ore is the biggest single cost in the sample, ahead of smelting power. Units blend high grade ore with cheaper slag from ferro manganese furnaces, which still holds manganese. Per tonne of alloy, a 2022 filing for a 5 MVA plant used 1.06 tonnes of this slag, 0.27 tonnes of coke, 0.47 tonnes of coal and 0.24 tonnes of dolomite.
| Input | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Manganese ore | 40% | 569.33 |
| Power | 34% | 483.93 |
| Coke and coal | 14% | 199.26 |
| Electrode paste | 5% | 71.17 |
| High carbon ferro manganese slag | 4% | 56.93 |
| Dolomite and quartz | 3% | 42.70 |
| Total | 100% | 1,423.32 |
The sample counts smelting power as a raw material because it is consumed per tonne of alloy. Other power and fuel is shown under utilities.
Machinery for a silico manganese plant
The furnace and its transformer take more than half the machinery budget in the sample. Pollution control is not optional here: fume extraction with bag filters is a standard condition of consent.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Submerged arc furnace with Soderberg electrodes | Smelts the charge into alloy and slag | 160.53 |
| Furnace transformer and HT switchyard | Steps down grid power for the electrodes | 89.18 |
| Fume extraction and bag filter system | Captures furnace fume and dust | 53.51 |
| Raw material handling and batching system | Screens, weighs and feeds the charge | 44.59 |
| Ladles, casting beds and EOT crane | Handle molten metal and cast it | 44.59 |
| Alloy crushing and screening plant | Sizes the alloy to buyer specification | 26.76 |
| Cooling water system | Cools the furnace shell, electrodes and transformer | 26.75 |
| Total plant and machinery | 445.91 | |
Costs are the sample report's estimates for a 14 MT per day plant. Get current quotations before you finalise.
Power, water and slag: what a smelter really runs on
Power decides whether a silico manganese plant makes money. Most of the site plan, from the HT line to the slag yard, follows from the furnace rating.
| Specific power | About 4,000–5,250 kWh per tonne of alloy (4,000 kWh in a 2022 filing for a 5 MVA plant; 4,750–5,250 kWh per the Indian Bureau of Mines) |
|---|---|
| Power supply | Dedicated HT feed: 33 kV for the 5 MVA plant in Chandrapur, a 132 kV line for MOIL's 18 MVA plant |
| Water | Closed-loop cooling with small make-up: 30 KLD for the 5 MVA plant, 35 KLD for the 18 MVA plant, both designed for zero discharge |
| Slag | Roughly one tonne per tonne of alloy at the 5 MVA plant; metal is recovered by jigging and the rest sold for road and construction fill |
| Bag filter dust | About 500 tonnes a year at the 5 MVA plant, agglomerated and returned to the furnace |
| Power cost in the sample | ₹483.93 lakh of smelting power plus ₹195.34 lakh of other power and fuel in Year 3 |
Check the tariff first: at 4,000 kWh or more per tonne, every rupee per unit on your power tariff adds ₹4,000 or more to the cost of each tonne. Get the HT tariff and any industrial concessions in writing before sizing the furnace.
Licences and approvals for a silico manganese plant
| Environmental clearance | Required under item 3(a), metallurgical industries, of the EIA Notification; the 5 MVA and 18 MVA plants reviewed for this page were both appraised as Category A |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board, with stack limits and, for larger plants, continuous emission monitoring |
| BIS certification | The BIS standards portal lists silicomanganese (IS 1470) under mandatory certification through a Quality Control Order implemented on 8 November 2024; IS 1470 was revised in 2025, so confirm the licence scope with BIS |
| Power | HT connection and sanctioned contract demand from the state utility for the furnace load |
| Factory licence | Under the Factories Act, with approval of the plant layout and furnace area safety measures; rules vary by state |
| Business registration | Udyam (MSME) registration and GST registration |
Checked on official portals in October 2026. Rules change; confirm with the state authorities before applying.
Who buys silico manganese in India?
Almost every tonne goes into steel. Steel makers add it to each heat to remove oxygen and lift manganese and silicon. The Indian Bureau of Mines notes it is preferred over high carbon ferro manganese as a deoxidiser. Demand therefore moves with steel output, especially long products such as TMT bars.
Production is spread across Chhattisgarh, Odisha, Jharkhand, West Bengal, Karnataka, Maharashtra, Meghalaya and Andhra Pradesh, close to ore mines and power.
- Induction furnace and TMT bar makers
- Integrated steel plants, through annual tenders
- Electric arc furnace steel plants
- Ferro alloy traders and stockists
- Export buyers
Where a new plant wins: buyers judge a smelter on consistent analysis tap after tap. A unit that holds manganese, silicon and phosphorus within a narrow band gets repeat orders even against larger plants.
Mistakes that weaken a silico manganese project report
- Using an average power tariff
The project lives on its HT tariff, demand charges and any concessions. A generic rate per unit misstates the largest cost you can negotiate, so the DSCR looks better than it is.
- Assuming one ore grade all year
Ore manganese content and the manganese to iron ratio change from lot to lot. The report should show the charge mix and recovery the plant can hold.
- Leaving slag out of the numbers
About a tonne of slag comes out with every tonne of alloy. Handling, metal recovery and sale or disposal all belong in the cost sheet.
- Ignoring the clearance timeline
Environmental clearance and the HT line can take longer than civil work. Interest during construction must cover that wait.
- Underestimating working capital
Ore is bought in bulk lots and steel mills pay on credit. Our sample carries 30 days of raw material stock and 45 days of receivables.
How NPCS helps you set up a silico manganese plant
- Furnace size and gradeMatch MVA rating, grade and output to your power, ore access and buyers.
- Charge mix and cost sheetBuild cost per tonne from ore, slag, reductants and your actual tariff.
- Bank-ready project reportProjections, DSCR, sensitivity to power and ore prices, and working capital.
- Clearances and layoutPlant layout, slag yard, pollution control and the approvals list for your state.
NPCS's client list shows 116 assignments in metal products, including a recent report on electrolytic manganese metal. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the silico manganese sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS silico manganese project reports
These are silico manganese project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Ferro Alloys-Ferro Manganese, Silico Manganese, Ferro Silicon Based ON Aluminothermic Process | 12 MT/Day, Ferro Manganese –6 MT/Day, Silico Manganese 3 MT/Day, Ferro Silicon 3 MT/Day | ₹2.42 crore | 36% | 79% | Get this report |
| Ferro Alloys – Ferro Manganese, Silico Manganese, Ferro Silicon Based ON Aluminothermic Process | 1800 MT/Annum Ferro Manganese, 900 MT/Annum Silico Manganese, 900 MT/Annum Ferro Silicon | ₹2.83 crore | 40% | 74% | Get this report |
| Silico Manganese | 14400 MT/Annum | ₹18.61 crore | 40% | 70% | Get this report |
| Ferro Alloys (Ferro Silicon, Ferro Manganese & Silico Manganese) | Ferro Silicon:59.0 MT/Day.,Ferro Manganese:167.0 MT/Day.,Silico Manganese:130.5 MT/Day. | ₹42.8 crore | 28% | 41% | Get this report |
| Ferro Alloys, Ferro Silicon, High Carbon Ferro Manganese, Silico Manganese Production | Ferro Silicon (70-75% SI): 6,500 MT Per Annum, High Carbon Ferro Manganese (70-72% Mn): 22,000 MT Per Annum, Silico Manganese (Mn 70% and Si… | ₹246.27 crore | 27% | 54% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Silico Manganese project report: frequently asked questions
What is the cost of a silico manganese plant in India?
It depends mainly on furnace size. Our sample report models a 14 MT per day unit at ₹886.52 lakh. Public environmental filings show a 5 MVA ferro alloy plant costed at ₹1,575 lakh in 2022 and an 18 MVA, 25,000 tonnes per year plant at ₹136.44 crore. Land, power line length and pollution control change the figure most.
How much power is needed to make one tonne of silico manganese?
Plan for roughly 4,000 to 5,250 kWh of electricity per tonne. A 2022 pre-feasibility report for a 5 MVA plant used 4,000 kWh per tonne, while the Indian Bureau of Mines gives 4,750 to 5,250 kWh. Higher silicon grades, more slag and poor charge preparation all push consumption up.
What raw materials are used to make silico manganese?
Manganese ore, high carbon ferro manganese slag, coke and coal as reductants, quartz for silicon, and dolomite as flux, with electrode paste for the Soderberg electrodes. One 2022 filing used 1.68 tonnes of ore and slag, 1.06 tonnes of ferro manganese slag, 0.27 tonnes of coke and 0.47 tonnes of coal per tonne of alloy.
Is a silico manganese plant profitable?
It can be, if power is cheap and ore buying is disciplined. In our illustrative sample, a 14 MT per day plant earns a 26% return on investment in Year 3. It breaks even at about 40% of capacity and pays back in about 3.2 years. A rise in the power tariff or ore price hits margins fastest, so test both.
Does a silico manganese plant need environmental clearance?
Yes, in most cases. Silico manganese smelters are appraised under item 3(a), metallurgical industries, of the EIA Notification. Both filings checked for this page, a 5 MVA plant in Chandrapur and an 18 MVA plant near Nagpur, were treated as Category A. That means appraisal by the Ministry of Environment, Forest and Climate Change.
What is the difference between silico manganese and ferro manganese?
Silico manganese carries both manganese and silicon, typically 60 to 70% manganese and 16 to 28% silicon, while high carbon ferro manganese has little silicon. Steel makers prefer silico manganese as a deoxidiser because one addition supplies both elements. Silico manganese plants also use slag from ferro manganese furnaces as a feed.
Is the silico manganese project report PDF free, and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative, not from a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own furnace size, location and power tariff.
Sources and references
- Indian Minerals Yearbook 2020, Ferro-Alloys (advance release)Indian Bureau of Mines, Ministry of Mines, checked Oct 2026
- IS 1470:2025 Silicomanganese, Specification (Fifth Revision)Bureau of Indian Standards, checked Oct 2026
- IS 1470:2013 Silicomanganese, standard details and QCO statusBureau of Indian Standards, checked Oct 2026
- Pre-feasibility report, 1 x 5 MVA ferro alloy plant, MIDC ChandrapurMinistry of Environment, Forest and Climate Change (Parivesh), checked Oct 2026
- Executive summary of EIA, MOIL silico manganese plant, NagpurMaharashtra Pollution Control Board, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.