What is a silicon metal project report?
A silicon metal project report is a detailed project report (DPR) for a plant that smelts quartz with carbon in a submerged arc furnace to make metallurgical grade silicon. It sets out the furnace size, power need, raw materials, approvals, project cost, means of finance, five-year projections, DSCR and break-even for a bank or investor.
Promoters use it to size the furnace and raise a term loan; lenders and investors use it to judge whether the plant can pay its power bill and still repay.
Also known as: silicon metal manufacturing plant project report, silicon metal DPR, silicon metal business plan, metallurgical grade silicon project report.
Silicon metal manufacturing plant cost in India
Our sample report models a 6 MT per day plant built around one small submerged arc furnace, running 330 days a year. Utilisation starts at 60% and reaches 80% in Year 5, and silicon metal is sold at ₹1,34,000 per MT before GST.
| Land and site development | 118.97 |
|---|---|
| Building and civil works | 262.30 |
| Plant and machinery | 488.19 |
| Other fixed assets | 42.72 |
| Contingencies | 37.52 |
| Preliminary and pre-operative | 23.74 |
| Working capital margin | 54.84 |
| Total | 1,028.28 |
| Promoter's contribution (25%) | 257.07 |
|---|---|
| Term loan from bank (75%) | 771.21 |
| Cash credit limit (separate) | 164.50 |
| Total project cost | 1,028.28 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative; larger furnaces cost proportionately more.
Silicon metal manufacturing process
Silicon metal is made by carbothermic reduction: carbon pulls the oxygen out of quartz at about 2000 °C inside a submerged arc furnace. The furnace runs round the clock, and the metal is tapped at intervals.
- Prepare the charge
Quartz is washed and screened to lump size so fines do not choke the furnace. Coal, coke, charcoal and wood chips are sized to keep the charge porous for gas flow.
- Weigh and feed
Each batch is weighed to a set carbon to quartz ratio and fed around the three electrodes. Too little carbon leaves unreacted quartz; too much builds up carbide in the furnace.
- Smelt
The arc heats the charge until carbon reduces silica to liquid silicon, and the carbon monoxide given off burns to carbon dioxide above the furnace.
- Tap and refine
Liquid silicon is tapped into a ladle and refined by blowing oxygen or air, which lowers aluminium and calcium to the limits of the target grade.
- Cast and cool
The refined metal is poured into shallow moulds and cooled slowly enough to avoid fine cracks and dust.
- Crush, test and grade
Slabs are crushed and screened to the lump size the buyer asks for, checked on a spectrometer and bagged by grade such as 553 or 441.
- Collect the fume
Off-gas passes through a bag house, where very fine silica dust is captured and sold as microsilica to concrete and refractory users.
Silicon metal or ferrosilicon: what changes in the plant
Many promoters compare silicon metal with ferrosilicon, since both come out of a submerged arc furnace. The products serve different buyers, and silicon metal is the harder of the two to make.
| Product | Silicon metal is about 98–99% silicon; ferrosilicon is an alloy of silicon and iron, commonly about 70–75% silicon |
|---|---|
| Main buyers | Silicon metal goes to aluminium alloy, silicone and solar users; ferrosilicon goes to steel plants and foundries |
| Charge | Silicon metal uses no iron or steel scrap, and needs cleaner quartz and low-ash reductants such as charcoal and wood chips |
| Electrodes | Silicon metal furnaces use prebaked carbon or composite electrodes, because the steel casing of a conventional self-baking electrode would add iron to the metal |
| Power per tonne | About 11,000–13,000 kWh for silicon metal, against about 9,000 kWh reported for ferrosilicon |
| Standard | Ferrosilicon is covered by IS 1110:2023 under a Quality Control Order; silicon metal is traded on buyer grades such as 553 and 441 |
Power figures are indicative values from published studies. Check whether any BIS order applies to your product when you apply.
Raw materials for silicon metal
Each tonne of silicon takes roughly 2.7–3 tonnes of quartz plus a blend of reductants (indicative). Because electricity is consumed in direct proportion to output, the sample report lists smelting electricity alongside the charge materials.
| Input | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Smelting electricity | 56% | 587.15 |
| Quartz lumps | 10% | 104.85 |
| Low-ash coal and petroleum coke | 12% | 125.82 |
| Charcoal and wood chips | 12% | 125.82 |
| Prebaked carbon electrodes | 10% | 104.85 |
| Total | 100% | 1,048.49 |
Auxiliary power and fuel (₹120.94 lakh in Year 3) is shown separately in the sample's profit statement.
Machinery for a silicon metal plant
The furnace, its transformer and the fume system take about two thirds of the machinery budget in the sample. Electrode handling and the cooling circuit need the most care when you compare quotations.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Submerged arc furnace with electrode columns | Smelts the quartz and carbon charge | 156.22 |
| Furnace transformer and HT substation | Steps grid power down to high current at low voltage | 87.87 |
| Bag house and microsilica collection | Cleans off-gas and recovers silica fume | 68.35 |
| Raw material handling and weigh batching | Stores, sizes and doses the charge | 39.06 |
| Ladle refining and casting system | Refines tapped metal and casts slabs | 39.05 |
| Crushing and screening plant | Breaks slabs into graded lumps | 34.17 |
| Closed circuit cooling water system | Cools the furnace shell, electrodes and transformer | 24.41 |
| Charging and tapping equipment | Feeds the furnace and opens the tap hole | 19.53 |
| Laboratory with spectrometer | Checks silicon, iron, aluminium and calcium | 19.53 |
| Total plant and machinery | 488.19 | |
Costs are the sample report's estimates for a 6 MT per day plant. Get current quotations before you finalise.
Power: the cost that decides a silicon metal plant
Electricity is the input that decides whether a silicon metal plant makes money. Before choosing a state or a site, settle where your power will come from and what it will cost.
| Energy per tonne | About 11,000–13,000 kWh of electricity per tonne of silicon (indicative, published studies) |
|---|---|
| Tariff effect | Each ₹1 per kWh adds roughly ₹11,000–13,000 to the cost of a tonne, against a sample selling price of ₹1,34,000 per MT |
| In our sample | Smelting electricity is ₹587.15 lakh in Year 3, the largest single cost, with a further ₹120.94 lakh for auxiliary power and fuel |
| Connection | A dedicated high-tension supply with its own substation; in the Maharashtra furnace projects listed in our sources, a 7.5 MVA furnace takes supply at 33 kV and two 6 MVA furnaces need about 15 MW |
| Continuity | Unplanned outages cool the furnace and cut silicon yield, so lenders ask about feeder reliability and restart losses |
| Water | A closed cooling circuit for the furnace and transformer, with make-up water only for losses |
Test the tariff first: run the projections at your actual tariff and at ₹1 per kWh above it. If DSCR falls below about 1.3 at the higher tariff, revisit the site or power source before you apply for the loan.
Approvals for a silicon metal plant
| Environmental clearance | Small ferro alloy furnace projects (6–7.5 MVA) in Maharashtra were appraised as Category A, with terms of reference from MoEFCC and a public hearing; plan for the same route |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; state lists place metal extraction through furnaces and alloy making in the red category |
| Emission controls | Bag filters on the furnace off-gas and continuous emission monitoring linked to the pollution boards, as proposed in recent Maharashtra furnace projects |
| Factory licence | Under the Factories Act; rules and thresholds vary by state |
| Power | High-tension connection sanctioned for the furnace load |
| Microsilica | BIS licence under IS 15388 (silica fume) if you sell microsilica into the concrete trade |
The categorisation was harmonised by CPCB directions of 12 February 2025. Confirm the category and clearance route with your state board, as of the date you apply.
Market for silicon metal in India
India buys most of its silicon metal from abroad. BigMint reports imports of 45,665 tonnes in January to June 2024, up 14% on a year earlier, with about 90% from China. Secondary aluminium alloy ingot makers, who add silicon to alloys such as ADC12 for die casting, are the largest users.
- Aluminium alloy ingot makers
- Aluminium die casting units for auto parts
- Silicone and silane producers
- Electrical steel and special alloy makers
- Refractory manufacturers
- Metal traders who supply smaller foundries
Where a domestic plant wins: buyers compare your price with the landed cost of Chinese grade 553, so freight, duty and delivery time are your margin. A plant near the alloy ingot clusters can offer short lead times and smaller lots.
Mistakes that weaken a silicon metal project report
- Assuming a power tariff you have not secured
A report built on a hoped-for tariff overstates profit more than any other error. Base it on a sanctioned tariff or a signed power agreement.
- Borrowing ferrosilicon norms
Silicon metal takes more power per tonne and cleaner inputs, so ferrosilicon consumption figures make the plant look cheaper to run.
- Skipping quartz testing
Quartz that cracks or turns to fines in the furnace blocks gas flow and cuts yield. Test the actual deposit before signing supply.
- Pricing on the Chinese export price alone
Buyers pay against landed cost, and that price moves fast. Show sales at a range of prices, not one favourable figure.
- Counting microsilica income without a buyer
Silica fume needs densifying, bagging and a concrete or refractory buyer. Leave it out of revenue until you have one.
How NPCS helps you set up a silicon metal plant
- Furnace size and grade planMatch furnace rating, output and target grades to your power and market.
- Power and site studyCompare states and sites on tariff, supply reliability and raw material distance.
- Bank-ready project reportProjections, DSCR and tariff sensitivity in the format your lender wants.
- Approvals roadmapEnvironmental clearance, pollution consent and layout for your state.
NPCS's client list includes 4 assignments for silicon metal and 116 in metal products, for entrepreneurs, banks and companies in India and abroad, since 1994.
What's inside the silicon metal 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 |
What clients say about NPCS
4.7
264 Google reviews, as of 20 Oct 2026
Clients most often mention
- feasibility reports 18
- project report 16
- helpful for startups 15
- detailed reports 8
-
Excellent experience with Niir Project Consultancy Services. Their Techno-Economic Feasibility Reports are incredibly detailed and backed by solid market data.
Piyush Singh, Google review, 2026
-
Niir Project Consultancy Services offers excellent guidance for business setup. Their market survey and feasibility reports saved us a lot of time and helped us make informed decisions. Highly recommended
Saroj Yadav, Google review, 2026 View on Google
-
In an era of information overload, NIIR stands out for its precision. Their technical consultancy and market feasibility studies are world-class.
Shrishti Gautam, Google review, 2026
-
NIIR Project Consultancy Services provides useful books and reports for students, entrepreneurs, and small businesses. Their content is easy to understand and focuses on practical ideas for starting and managing industries. Overall, NIIR is helpful for learning about business and project planning.
Raj Yadav, Google review, 2026
Silicon Metal project report: frequently asked questions
How much does it cost to set up a silicon metal plant in India?
Our sample report models a 6 MT per day plant with one furnace at ₹1,028 lakh, including land, building and working capital margin. Public hearing summaries for ferro alloy furnace projects in Maharashtra show about ₹10 crore for one 7.5 MVA furnace and ₹27 crore for two 6 MVA furnaces. These are indicative; your report prices your furnace size and site.
How much electricity is needed to make one tonne of silicon metal?
Published studies put it at about 11,000–13,000 kWh per tonne of silicon. That is why power is the largest cost of a silicon metal plant. Every ₹1 per kWh added to your tariff raises cost by roughly ₹11,000–13,000 per tonne, so the report must use the tariff you can actually secure.
What raw materials are used to make silicon metal?
Quartz lumps supply the silica. The carbon comes from a mix of low-ash coal, petroleum coke, charcoal and wood chips, and prebaked carbon electrodes carry the current into the furnace. Quartz and reductants must be low in iron, aluminium and calcium, because impurities in the charge end up in the metal and lower its grade.
What is the difference between silicon metal and ferrosilicon?
Silicon metal is about 98–99% silicon and is sold mainly to aluminium alloy makers and silicone producers. Ferrosilicon is an iron and silicon alloy used in steelmaking and foundries. Both are made in submerged arc furnaces, but silicon metal needs cleaner raw materials, no iron in the charge and more power per tonne.
Is a silicon metal plant profitable in India?
It can be when power is secured at a competitive tariff. In our illustrative sample, a 6 MT per day plant earns a 21% return on investment in Year 3. It breaks even at 36% of capacity and pays back in about 3.6 years. A higher tariff or a fall in import prices can erase that margin quickly.
Which approvals does a silicon metal plant need?
Expect environmental clearance for the furnace project, consent to establish and operate from the State Pollution Control Board, a factory licence, and a high-tension power connection. State boards list metal extraction through furnaces in the red category. Approval routes differ by state and capacity, so confirm them before you finalise the site.
Is the sample report 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 and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, site and power tariff.
Sources and references
- Revised categorisation of industries (Red, Orange, Green, White, Blue)Maharashtra Pollution Control Board, checked Oct 2026
- List of red category industriesPunjab Pollution Control Board, checked Oct 2026
- Executive summary, Vinay Alloys ferro alloy plant (2 x 6 MVA submerged arc furnace)Maharashtra Pollution Control Board, checked Oct 2026
- Executive summary, Balaji Electro Smelters ferro alloy plant (7.5 MVA submerged arc furnace)Maharashtra Pollution Control Board, checked Oct 2026
- IS 1110:2023 Ferrosilicon, specificationBureau of Indian Standards, checked Oct 2026
- All India first licence under IS 15388 (silica fume)Bureau of Indian Standards, checked Oct 2026
- Emerging technologies for decarbonizing silicon production (Journal of Sustainable Metallurgy, 2024)Springer Nature, checked Oct 2026
- Silicon costs vary a lot due to different electricity pricesShanghai Metals Market (SMM), checked Oct 2026
- Siltech submission on ferrosilicon production (Portfolio Committee on Trade and Industry)Parliamentary Monitoring Group, South Africa, checked Oct 2026
- India's silicon imports up 14% in H1 CY'24BigMint, 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.