Value Added Elements

Estimations of Product-wise Demand

for Steel in Power Projects

Exclusive Coverage on Market of

Special Steel (CRGO/CRNO);

Seamless Pipes & Tubes in India

Market Sizing of Steel Products and

Equipment for Indian Power Sector

Equipment Requirement Portfolio in

Power Sector Projects

Illustrating linkages of Sustainability

and Environment Friendly Steel

Solutions in Power sector

Detailed Profiling of Power Projects to

come up till 2017 in India

Renewable

Power

Hydro

Power

Thermal

Power

Steel Demand in Power Sector Projects 2017Market sizing and Opportunity Assessment

May 2014

Industry First

Report

Infraline Business Series Report

Steel & Power Sector: A Correlation

With continued growth in India’s infrastructure sector, the growth in power sector shall be

palpable, with expert estimates suggesting that for every one percent increase in GDP, power

generation would need to increase by one percent. The government, in its 12th Five Year Plan, has set

a target of adding 88,537 MW of power generation capacity with an estimated total fund requirement

of more than INR 13.55 lakh crore (USD 225 Billion) for power generation; transmission and

distribution.

51%69%

41.3

78.7

88.5

0%

50%

100%

150%

0

50

100

Tenth Plan Eleventh Plan Twelfth Plan (E)

Actual Achievement (in %)

Target Capacity Additions (in GW)

In FY17, the share of power sector (excluding renewable energy sources) in total steel

demand is expected to rise by more than 50 percent from FY12

Steel aficionados understand that steel shall be an indispensable input for green-field as well

brownfield power plant capacities, owing to high capital investments in power sector. This is

because the application of steel is widespread in the power plant; from boilers; turbines;

transformers; generators; power transmission towers and cables to a variety of components

used in renewable energy technologies such as solar and wind energy.

Power Generation Capacity Additions

92

119

129

140

149

80

110

140

FY13 FY14 FY15 FY16 FY17

Projected Crude Steel Capacity in 12th FYP

Capacity Additions

Structural SteelStructural steel remains the default material in building power

plant equipments. Its major application in a power project is in

building turbines, generators, boilers, pumping

stations, cooling towers, control panels etc.

Reinforcement SteelReinforcement steels include rods and bars and are primarily

used for reinforcement of concrete structure.

Pipes & TubesSeamless tubes and pipes are used in boilers and heat

exchangers, areas where a significant amount of fluid transfer

is required.

Electrical Steel Electrical Steel primarily comprises of two steel products i.e.

Cold Rolled Grain Oriented (CRGO) Steel and Cold Rolled

Non Grain Oriented (CRNO) Steel.

Steel pipes and tubes comprise of about 15%

of the total steel requirement of a thermal

power plant.

CRGO steel finds applications in

manufacturing power transformer cores, and

CRNO steel is suitable for moving parts in

generators and motors.

As per CEA norms for Steel used in hydro

power sector - 93 tons of reinforcement steel

are used in per MW of hydropower project.

Plates and sheets comprise of about 40% of

the total steel requirement of a coal Base

thermal power plant.

Assessment of power sector steel demand essentially

requires an in-depth study of the electrical equipment (EE)

market of India as EE manufacturers are the major direct

finished steel consumers with product sales largely

dependent on power sector growth plans.

The envisioned growth of power sector for 12th Plan period

is expected to entail exponential demand for electrical

equipment. Presently, the domestic electrical equipment

industry is worth INR 120,200 crores (UDS 20 Billion) with

1/4th share captured by generation equipment -

Boiler, Turbines & Generators and the remaining by T&D.

0

50

100

150

200

250

300

FY12 FY17

BTG Equipment T&D Equipment

263

120.2

As per IEEMA estimates, the production of major electrical

equipment has grown from INR 38,920 crore in 2006-07 to INR

64,235 crore in 2011-12 at a CAGR of 10.5 % while the

production of BTG equipment has increased from INR 8,933

crores in 2006-07 to INR 31,000 crores in 2011-12 at a CAGR

of 28.3%.Source: EE Industry Mission Plan, Department of Heavy Industries, GoI

Equipment Industry Size

(in INR ‘000 crore)

Steel Applicability in Power Sector

Growth in Equipment Industry to Drive Steel Demand

Infraline’s Initiative

Objective 1:Shortlisting

Power Projects to be

commissioned in 12th FYP

Objective 2:Estimating equipment

requirement for proposed power projects

Objective 3:Estimating

Product wise steel requirements for the power sector

till FY17

In view of the growing capacity addition of steel

in power sector, InfralineEnergy is launching

India’s first ever Business Series Report on

“Steel Demand in Power Sector Projects

2017: Market sizing and Opportunity

Assessment”. Equipped with Infraline’s

expertise in the energy and steel domains, this

in-depth report, covering analytical models and

primary research elements, would primarily

investigate the application of various steel

products in the power generation and

transmission sector with a core objective of

estimating the future growth in product-wise

steel demand for the sector.

Recommendations have also been provided

with respect to the emerging area of

environment friendly steel solutions for the

power generation.

The aim of this

research is to

analyze steel’s

role in power

sector in 12th

FYP

Equipment Portfolio for Power Plant Installation

(Coal, Gas, Hydro, Wind and Solar)

Highlights of Major Steel Products Requirement by Power Plants

Profiles of Major Equipment Manufacturers and Steel Producers

Opportunities for Power Equipment Suppliers and Steel Players

Estimates of Upcoming Power Capacity till 2017

Coverage on Renewable Capacity Additions with Special Focus

on Solar and Wind Energy

Pivotal Features of the Study

Which products of steel would be in high demand by the Indian power sector?

Which power projects are expected to be commissioned by FY17?

What will be the generation and transmission equipment portfolio demanded by FY17?

What is the level of India’s indigenous capabilities in steel production (in terms of satisfying power

sector demand)?

Do new opportunities exist for steel players in expanding their product portfolios to satisfy specific

demands of emerging renewable energy technologies?

What kind of opportunities exist for steel producers to attract more revenue from the envisaged

power sector growth in 12th FYP?

What are the different product offerings by domestic players in Indian steel market?

Key Questions Answered

Research Process

Key

Sources

Market

Research

Literature

Review

Industry

Interaction

In-house

Expertise

Survey Questionnaire and

Telephonic Interviews of Players in

Power & Steel Sector

Face to

Face M

eetin

gs a

nd

Pers

on

al In

terv

iew

s o

f co

al

Secto

r Sta

keh

old

ers

Po

wer

& S

teel

Secto

r

Rep

ort

s,

Jo

urn

als

, M

ag

azin

es,

Min

iste

rial

Do

cu

men

ts,

In

fralin

e

Data

base

In-house Analysis and Focus Groups

1

2

3

4

Indian Power Project Developers

Steel Producers

Steel Traders

Equipment Manufacturers

Power Transmission Utilities

Shipping Companies

Project Management Companies

Government Agencies

Project Financers

Investment Bankers

Research & Educational Institutes

Risk Managers

Consulting and EPC companies

A Must Buy For

Increased Import Duties on Special Steel and Resulting Impact on Equipment Manufacturers

Continuous Rise in Threat from International Steel Supplier

International Equipment Suppliers Preferred over Domestic Players

Strategic collaboration for indigenous development of Special steel Technology

Business Case Studies

EXECUTIVE SUMMARY

1. Steel in Power Industry Landscape: Status Quo

1.1 Steel Intensiveness in Power Sector

1.2 The Indian Steel Industry: Indigenous Capabilities

and Trends

1.2.1 Historical Production and Trade Trends

1.2.2 Product-wise Steel Availability in India

1.3.3 Steel Capacity addition under 12th FYP

1.2.3 Player-wise offerings for Power Sector

1.3 The Indian Power Sector – Growth Story and

Future Plans

1.3.1 Historical Planned and Achieved Capacity

Additions

1.3.2 Electricity Demand-Supply Dynamics in 11th

FYP

1.3.3 Power Capacity Addition under 12th FYP

1.4 Specific Steel Requirements of Power Sector

2. Capacity Addition in Indian power sector till FY17: A

Latest Assessment

2.1. Power Sector Transition in the Past Five Years

2.1.1 Transition in Fuel Usage

2.1.2 Transition in sector-wise capacity addition

2.1.3 Transition in Power Generation Technology

2.2 Under Construction Indian Power Projects till FY17

2.2.1 Under-Construction Thermal power projects

2.2.2. Under-Construction Hydro power projects: By

state and Capacity

2.2.3 Under-Construction Renewable power projects:

SHP, Solar and Wind

2.2.3 Upcoming Power Transmission projects

2.3 Project Execution Challenges and Key Issues in

Indian Power Projects

3. Steel Applicability in Power Equipments

3.1 Equipment Portfolio and Steel Requirements for

Power Generation Projects

3.1.1 Thermal Power Plant

3.1.2 Hydro Power Plant

3.2 Equipment Portfolio and Steel Requirements for

Renewable Power Generation Projects

3.2.1 Solar Power Plant

3.2.2 Wind Power Plant

3.3 Equipment Portfolio for Power Transmission

Projects

4. Estimating Steel Potential in Indian Power Sector

till FY17: End use Demand forecasting Modelling

4.1 Power Sector Steel Demand Projections till FY17

4.1.1 Thermal Power Projects

4.1.2 Hydro Power Projects

4.1.3 Renewable Power Projects (Wind and Solar)

4.1.4 Power Transmission Projects

4.2 Summarization of Power Sector Steel Demand in the

12th FYP

4.3 Steel Product-wise Production Estimates till FY17

4.4 Infraline’s Market Sizing

4.4.1 Market sizing for steel products

4.4.2 Market sizing for power equipment

5. Electrical Steel (CRGO/ CRNO) : Influence on the

Indian Power Sector

5.1 International Scenario for Electrical Steel

5.2 Electrical Steel Technological Complexities

5.3 Demand Estimates for Electrical steel in Indian Power

Sector

5.4 Electrical Steel Import Burden on the Power Sector

5.5 Government Initiatives for Developing Indigenous

Capabilities

6. Seamless Pipes and Tubes: An Untapped Potential

6.1 Market Trends and Forecast till FY17

6.1.1 Domestic Production Trends

6.1.2 Imports Trends

6.1.3 Domestic Production Forecast

6.2 Applications in Power Sector

6.3 Major Players in Indian Market

(Maharashtra Seamless, ISMT, BHEL, Jindal Saw)

6.4 Foremost Sourcing Options

7. Steel Solutions for a Cleaner Environment

7.1 Winds of Positive Outlook for Steel Demand

7.1.1 Steel usage in Wind power plant

7.1.2 Steel demand in Indian Wind energy sector

7.2 Steel outlook for Indian Solar Sector

7.2.1 Steel Usage in Solar Power Pant

7.2.2 Steel demand in Indian solar manufacturing

market

7.3. Environment -friendly Steel Solutions for Power

Sector

7.3.1 Support for Recyclability and Reusability of Steel

7.3.2 Environmental concerns of coated steel sheets

7.3.3 Sustainable steel offering for the Power sector

Contents & Coverage

Additional Data Points:1. Competitive Landscape: Benchmarking Steel

Manufacturers & Power Equipment Manufacturers

a) Key Business Statistics

b) Financial Profiling

2. List of under construction Thermal Power Projects in

India with their anticipated date of commissioning

Note: TDS will not be deducted.

In case of payments to be made in USD, Euro, GBP the conversion rates on the date of purchase

will be applicable.

Making the Payment

Payment in Indian Rupees (INR): We accept Cheques / Demand Draft. However, we prefer payment

through RTGS.

Account Name Infraline Technologies India Pvt. Ltd

Account Type Current Account

Account No. 503011022657

Bank Branch IFSC Code VYSA0005030

Name of Bank ING Vysya

Address ING Vysya Bank Ltd. Ground Floor Narain Manzil,

Barakhamba Road, New Delhi-110 001

Payment through Cheques / Demand Draft: Payment should be made in favour of 'Infraline Technologies

(India) Private Limited' through Cheques / DD payable at New Delhi (or 'at Par' cheques) and send it to the

below mentioned address.

For Payments in Foreign Currency

Through Wire Transfer: The wire transfer instructions are available at

http://www.infraline.com/WreTransferlnstructions.htm

Through Credit Card: We accept Visa, Master, Amex Cards and all major Net Banking cards. Additional

7% Gateway processing charge applicable along with additional shipping/courier charges.

For Sales & Support

Ravinder Nagar

ravinder.nagar@infraline.com

+91 11 46250027

For Research & Consulting

Ashima Tyagi

ashima.tyagi@infraline.com

+91 11 42425198

14th Floor, Atmaram House, 1, Tolstoy Road, Connaught Place,

New Delhi- 110001, India

Tel +91 11 46250027 (D), 46250000, Fax +91 11 46250099

Email ravinder.nagar@infraline.com, reports@infraline.comFor more details, visit

http://store.infraline.com

Pricing Options

Report Publications (Hard Bound) INR 50,000 only

Report Electronic Version (Single User License) INR 40,000 + Service Tax

Report Electronic Version (Corporate License) INR 1,50,000 + Service Tax

Payment Options

14th Floor, Atmaram House,1, Tolstoy Road, Connaught Place, New Delhi - 110001, India

Tel +91 11 46250000 (B), Fax +91 11 46250099

Email rs@infraline.com