Based on the principles of heat integration, the present work investigates the design and operational modifications which can lead to efficient energy integration in an electric arc furnace being operated with direct reduction process. This process is one of the oldest and most widely applied processes amongst the commercially used process in India. For the purpose of energy integration stream data is extracted from the actual flow sheet of the plant, which consists of supply and target temperatures, flow rate and specific heat capacity of all process streams. In the present paper, for the utilization of heat of waste gas, are proposed based on preheating of inlet streams. Based on sensible heat requirement for preheating air and feed material, the reaction of heat lost through the furnace wall is carried out by preheating of steel scrap, direct reduced iron and feed material and latent heat required for evaporation of moisture of feed material, energy consumption is computed [11]. For modified heat integration process, operability analyses are presented which include coal consumption, water requirement and energy consumption. One additional advantage of this system is that it gives simpler modified method in comparison to other scenarios and thus makes the process and its control easy. It minimizes the waste gases to the atmosphere that makes the process environment-friendly.