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    Projects Departmentof

    Bhilai Steel Plant(Known as Construction Department also)

    1. Background

    Steel Industry with its vital and forward linkage has a critical role to playin the planned economic development of the country. Steel is one of the criticalmaterials required for sustaining the growth of countries economy.

    While the steel industry has phases of conscious success in the past, it ispresently beset with the problem of lower capacity utilization, high-energyconsumption, lower productivity, high cost and Technological obsolescence. Theseproblems are being tackled through comprehensive planned corporate strategiesfor greater satisfaction to the customers & meeting the global demand of steel.

    2. Importance of Projects

    A Project in a steel plant involves number of activities right from

    Conceptualization, Planning, finalization of Consultant, Feasibility report, seekingapproval, Tendering, Ordering, Execution & Commissioning of units to achieve thedesired results.

    During the execution of Projects various activities viz Enabling works(Site leveling), Excavation, Concreting, Structural fabrication & its erection,

    Technological Structural fabrication & its erection, Manufacturing & supply ofequipment & its erection, Sheeting, Refractory lining etc are involved.

    With market globalization and capacity expansion, present steel industryis passing through a phase stiff competition among large number of major players.

    Today in order to remain in the competitive market, it has become essential for themanufacturers to produce steel of superior quality at competitive cost. This needscontinual improvement in Techno-economics involving maximizing capacity

    utilization, higher production, lower energy consumption besides adoption of latestTechnologies to produce customized and value added products. It is also veryimportant that the up-gradation / modification / addition is executed in time toreap the benefit of the opportunities available in the market.

    Thus the role of Project department is of extreme importance in effectivecoordinating and meticulously monitoring the various activities and ensure thatthe Project is completed in time.

    3. Need of Projects

    INSTALLATION OF NEW UNITS

    MODIFCATION OF EXISTING UNITS

    SUBSTITUTION OF AGED UNITS (REPLACEMENT)

    INTRODUCTION OF AUTOMATION SYSTEMS.

    INTRODUCTION OF STATE OF THE ART TECHNOLOGY

    4. Advent of Bhilai Steel Plant

    The Government of India, entered into an agreement with the Government of USSRon February 2, 1955, seeking technical & financial collorabation for establishmentof Bhilai Steel Plant. The 1.0 MT Expansion work was completed successfully. TheBSP journey for expansion is continued since then.

    5. Non stop journey of Bhilai Steel Plant (1.0 MT to 7.0 MT

    Crude steel)

    I. 1.0 MT Stage

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    The work of 1 MT was started in 1955-56 and completed progressively by 1956-61at a cost ofRs. 202 Crs.

    The following are the main features of 1 MT stage:

    Unit FeaturesCoke Ovens 3 Batteries, 65 Ovens

    Sinter Plant 2 Machines - 50 M2Blast Furnace 3 B.F. -1033 M3

    Steel Melting Shop 5 OHF (250 T)

    Power Plant - I 2 Nos. 12 MW TGOxygen Plant I 3 units

    RMP - I 1 No. Dolomite Kiln & 2 Nos. Lime KilnMills

    Blooming Mill 1150 mm, 2 High Reversing

    Billet Mill 700 / 500 mmR&SM 950 / 800 mm

    Merchant Mill 350 mm

    II. 2.5 MT Stage & 3.2 MT Stage

    The work of 2.5 MT was started around 1964 & completed progressively by 1967 ata cost ofRs. 150 Crs.

    The following are the main features of 2.5 MT stage:

    Unit Features

    Coke Ovens 3 Batteries, 65 Ovens, 21.7 M3Sinter Plant 1 Machine 50 M2

    Blast Furnace 3 B.F. 1719 M3

    Steel Melting Shop 5 OHF (500 T)Slag Processing Plant Crushing & Screening of Aggregates

    Power Plant - I 1 No. 12 MW TG

    Oxygen Plant - I 1 UnitRMP - I 1 No. Dolomite Kiln & 3 Nos. Lime Kiln

    MillsBlooming Mill 8 Groups of Soaking Pits

    R&SM Finishing groups 3, 4, 5 & 6Billet Mill 1000 mm

    Wire Rod Mill 250 mm

    Note: -Coke Oven Batteries No. 7 & 8 and Sinter M/c No. 4 were addedbeyond 2.5 MT Stage.

    III. 4.0 MT Stage

    The work of 4 MT was started some time in 1974-75 and completed progressivelyby 1988 at a cost ofRs. 2288 Crs.

    The following are the main features of 4.0 MT stage:

    Unit FeaturesCoke Ovens 1 Battery 67 Ovens, 7 Meter Tall (COB 9)

    Sinter Plant 4 Machines - 75 M2Blast Furnace 2000 M3 with BLT (BF-7)

    Steel Melting Shop 4 Twin Hearth Furnaces (500 T)3 Nos. 100 / 130 T Convertor

    Continuous Casting Shop 4 Nos. Single Strand Slab Caster

    1 No. 4 Strand Bloom CasterOxygen Plant II 3 Nos. Air Separation UnitsRMP II 1 No. Dolomite Kiln, 2 Nos. Lime Kiln & Brick

    shopPower Plant II 2 Nos. 30 MW TG & 1 No. 14 MW TG

    OHP & CRMBSY

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    Mills

    Plate Mill 3600 MM 4 High Reversing and 4 HighFinishing

    IV. Other AMR Schemes & De-bottlenecking Schemes & CapitalSchemes & Township

    Number of AMR Schemes & De-bottlenecking schemes & Capital schemes,Pollution control schemes & work on Township were also executed from time totime.

    V. Schemes under execution at present

    SN

    PROJECT

    Sanctioned

    Cost(Rs. Crs)

    1 Re-building of Coke Oven Battery # 5 219.04

    2 Installation of New Slab Caster, RH Degasser & Ladle Furnace InSMS II

    520.76

    3 Installation of Hot Metal De-sulphurisation Unit at SMS-II 86.23

    4 Instln. of Power Supply Facilities(MSDS-VI) for 2 x 1250 TPD NewOxygen Plant

    62.00

    SN

    PROJECT

    Sanctioned

    Cost(Rs. Crs)

    5 Installation of MSDS-V & associated Transmission line forEvacuation of Power from BESCLs Expansion Project

    125.94

    6 Implementation of ERP System at BSP 51.20

    7 Replacement of Dn-3000 BF Gas Header from BF-1 to BF-613.48

    8 Repl. of existing MG sets for Roughing & Finishing stand driveMotors at Plate Mill by digital Thyristor Convertors

    48.31

    9 Instln. of 700 TPD ASU-4 with Associated facilities at OP-II 212.44

    Total 1339.4

    VI. Schemes to be executed

    SN PROJECTEstimatecost

    (Rs. Crs)1 Installation of End Forging Plant for thick web rails 53.92

    2 Replacement of 120 T/Hr Pusher Type Reheating Furnace with140 T/Hr Walking Beam type Reheating Furnace at WRM

    85.36

    4 Electro Magnetic Stirrer in Bloom Cast SMS-II 27.85

    5 Oxygen Evacuation facilities for new 2x1250 TPD Oxygen Plant 37.00

    6 Implementation of Manufacturing Execution System 40.51

    7 Modernization & expansion of BSP to 7.0 MT 11262.00

    TOTAL 11682.4

    VII. 7.0 MT Stage (Modernization & Expansion)

    To meet the Corporate Goal, the SAIL Board has approved the Modernization &Expansion of Bhilai Steel Plant on 3rd April07 at a cost of 11262 Crs.

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    The Consultancy for various schemes is being provided by MECON & CET. TheMajor Schemes are as follows:

    SN Description of schemes1. Modernization of BF-6 : Package-I (BF proper & CH)

    2. Modernization of BF-6 : Package-II (GCP)3. Installation of 2nd Sinter M/c in SP-3

    4. Installation of 4060 M3 BF Complex

    5. BOF Shop Technological Package6. Installation of Continuous Casting Plant Complex7. Installation of Universal Beam Mill

    8. Installation of Bar & Rod Mill9. Installation of new Normalizing Furnace under Plate Mill Modernization &

    Augmentation10. Augmentation of Plate Mill capacity: Instln. Of Cooling Beds, Pilers & Other

    Equipment (Package III)11. Reheating Furnace for UBM, B&RM & URM

    12. Installation of Secondary Refining Unit for SMS-III13. Augmentation of OHP Part-A

    14. Installation of Universal Rail Mill

    15. Installation of New Coal Handling Plant16. Installation of Hot Metal De-sulphurisation Unit for SMS-III17. Replacement of Combi-caster with Bloom cum Beam blank caster in SMS-II

    18. Installation of Compressed Air Station No. 419. Installation of Turbo-blower Station

    20. Modernization of BF-6: Package-III (TB-9 revamping)

    21. Modernization of BF-6: Package-IV (INBA SGP)22. Aug. of Plate Mill capacity: Installation of Plate Edge Marking M/c & Automatic

    Length Measuring System (Package IV)

    23. Aug. of Plate Mill capacity: Installation of 40 T EOT Crane & 17 T Semi-portalCrane (Package V)

    24. Aug. of Plate Mill capacity: Installation of CNC Roll Grinding M/c(Package VI)

    25. Aug. of Plate Mill capacity: Supply & Installation of GUILLOTINE Shear (PackageVII)

    26. Aug. of Plate Mill capacity: Civil & Strl. Works (Package II)27. Aug. of Plate Mill capacity: Installation of 140 TPH Walking Beam Type Furnace

    (Package-I)

    28. Augmentation of MSDSs & Installation of MSDS-VII29. Boilers at P&BS

    30. New OHP Part-B & Base blending facility for SP-3

    31. COB-11 : 7 m tall coke oven battery No. 11 with 67 ovens32. COB-11 : Installation of BPP with H2S recovery unit

    33. COB-11 : Coke dry quenching facilities with coke sorting plant34. Civil and Strl works for BOF, CCP shop

    35. Civil & Structural Universal Rail Mill

    36. Civil & Structural works for BOF & CCS, Universal Beam Mill and Bar & Rod Mill37. Installation of 2 X 1250 TPD Oxygen Plant on BOO basis

    Anticipated Volume of Works during 7.0 MT

    The estimated volume of works for the Project on an overall basis is furnished below:

    Activities Volume of works

    Piling (Nos.) 2500

    Concrete (M3) 534000 M3Structures (T) 156000 T

    Plant & Equipment (T) 155000 T

    Refractory (T) 80000 T

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    Road Work

    11 M Wide 3 KM

    7 M Wide 8 KM

    4 M Wide 5 KM

    Laying & Linking of Railway Track 35 KM

    Dismantling of Existing Railway Track 15 KM

    VIII. Project organization

    1. Presently Project Deptt. is headed by ED (Projects). GM (PP&E & BEDB), GM(Proj.-Steel, OP & Utilities), GM(Proj.-Iron, Elect. & Mines), GM(Proj.-Mills, Coke &Safety) and DGM I/c (Commercial) are directly reporting to ED(Projects).

    2. The zonal concept is functioning in the Project Deptt. and headed by seniorDGMs.

    3. Presently the workforce consists of 212 Executives and 170 Non-executives.

    4. The site executing zones are as follows:

    Steel Zone

    Oxygen Plant-2 Zone

    Gas Pipe line Zone

    TPL work shop

    PMC, Inspection, follow-up & Quality

    Reporting to GM (Proj.-Steel, OP &Utilities)

    Iron Zone

    Power Generation Zone

    Instrumentation & Automation,Testing

    Electrical enabling Zone

    Civil services Zone

    Reporting to GM (Proj.-Iron, Elect. &Mines)

    Coke Zone

    Mill Zone

    HRD & Safety

    Construction Equipment Zone

    Reporting to GM (Proj.-Coke, Mills &Safety)

    Project Contract Cell Turnkey

    Project Contract Cell Non-TurnkeyReported to DGM I/c (Commercial)

    IX. Functional details of Project Department

    9.1 Project Contract Cell (Turnkey)

    a. Receipt of sanction letter from PP& E (Scheme No. & Amount code, etc.)

    b. Coordination with shop, consultant & finalization of TS / specifications.c. Receipt of final TS from consultant.d. Issue of tender enquiry.e. Organizing bidders conference.f. Coordination with consultant & parties for getting technical and commercial

    clarifications.g. Recommendations for placement of ordering.h. Award of contract.i. Sorting out commercial issues with the parties.

    9.2 Project Contract Cell (Non-Turnkey)

    a. Receipt of Stage-II from PP& E (Scheme No. & Amount code etc.).

    b. Receipt of draft TS from consultant.c. Coordination with shop, consultant & finalization of TS / specifications.d. Receipt of final TS from consultant.e. Receipt of proposal from zone for tendering.f. Finalization of eligibility criteria (NIT) including publication matter.

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    g. Seeking approval of management for release of tender enquiry for publication inopen tender / limited tender.

    h. Release of publication matter for publication in newspapers & on sail website.i. Issue of tender enquiry in case of limited tender.

    j. Sale of tender document.k. Extension if required for submission & opening of offers.l. Opening of earnest money deposit / BG.m. Opening of tender / techno-commercial offers.n. Process for bid evaluation techno-commercial & commercial.o. Recommendation for placement of ordering.p. Award of contract.q. Extension of time, clarification, settlement of rates of extra items & interim

    deviations.

    9.3 Site Execution zone

    a. Detail study of contract, scope, terms & conditions.b. Planning & execution for enabling works.c. Providing utilities & services to the executing agency within the boundary limits.d. Interaction with the executing agency for opening site office, gate passes for

    workers & receipt of various policies from the party.e. Study of L-1 network submitted by the party.f. Finalization of implementation plan based on contractual commitments.g. Follow-up with the party for completion of design engineering, equipment ordering,

    manufacturing and erection.h. Execution of civil work, dismantling if any and trench work.i. Fabrication & erection of building structures.

    j. Follow-up with the party for manufacturing & supply of equipment.k. Erection of equipment (Mechanical, Electrical, Instrumentation & Automation).l. Erection of refractory, sheeting etc.m. No-load testing & trial run of equipment.n. Load trial run of equipment.o. Defect elimination.p. Issue of PAT.q. Commissioning of equipment.r. Establishing performance guarantee.s. Closure of contract.

    t. Feed back.

    9.4 Project Monitoring, Inspection & Follow-up

    a. Understanding detail of contract by getting contract copy.b. Organizing kick-off of meeting.c. Coordination with party / consultant for finalization of list of drawings and

    documents.d. Follow-up with the party & consultant for completion of design engineering as per

    contractual schedule.e. Follow-up with the party for submission of master PERT Network & coordination

    with zone, shop & consultant for its approval.f. Finalization of implementation plan for various activities w.r.t. Contractual

    schedule.g. Preparation of Annual Implementation Plan for the contract.h. Preparation of High lights for the year.i. Preparation of Monthly Progress Reports of all ongoing schemes.

    j. Preparation of Weekly Progress Reports.k. Preparation of Daily Progress Reports.l. Preparation of agenda for review meetings being taken by MD / ED / GM as and

    when required in consultant with execution zone, consultant & shop.m. Preparation of MOM / record notes of all project review meeting.n. Preparation of MIS report.o. Visit to site for follow-up of site progress.p. Coordination & submission of all audit report.q. Budget certifications.

    r. Follow-up with party for expediting supply of equipment.s. Inspection of equipment as per QAP.t. Coordination for budget allocation.

    X. Capital Expenditure

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    As on 31.03.07 around Rs. 6642 Crores Capital Investment has been made byBhilai Steel Plant. The Details are as follows: -.

    Schemes Cost (In Crs.)

    1.0 MT Expansion 2012.5 MT Expansion 150

    4.0 MT Expansion 2288Social Facilities & Town Ship 185

    AMR, De-bottle necking/ New Capital schemes & Ongoing

    schemes

    3823

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