TRANSMISSION LINE TOWER (TLT) MANUFACTURING...

JOINT VENTURE OF RINL & POWERGRID

TECHNO ECONOMIC FEASIBILITY REPORT (TEFR)

ON

TRANSMISSION LINE TOWER (TLT)MANUFACTURING COMPLEX

MECON LIMITEDRANCHI-834002

JHARKHAND

11. 24.2012.F2068 July’ 2014



ON



JHARKHAND

11. 24.2012.F2068 July’ 2014



ON



JHARKHAND

11. 24.2012.F2068 July’ 2014

CONTENTSl.

No.Title Page No.

1. Introduction 1 – 3

2. Executive Summary 4 – 16

3. Characteristics & End uses 17 – 26

4. Market Analysis 27 – 36

5. Technological Considerations 37 – 41

6. Site Selection & General layout 42 – 47

7. TLT Fabrication Unit 48 – 56

8. TLT Galvanizing Unit 57 – 62

9. Electrics & Automation 63 – 73

10. Plant Services & Utilities 74 – 92

11. Quality Control Facilities 93 – 96

12. Civil & Structural Works 97 – 104

13. Manpower Requirement 105 – 107

14. Project Implementation 108 – 114

15. Pollution Control & Waste Management 115 – 117

16. Capital Cost 118 – 122

17. Production Cost 123 – 127

18. Financial Appraisal 128 – 138

19. Industrial Safety 139 – 141

20. Drawings 142

PREPARED BY CHECKED BY APPROVED BY

SAURABH MARKAM

Design Engineer

Rolling Mills

NISHEETH KUMAR

Asst. General Manager

Rolling Mills

GOUTAM CHAKRABORTY

Jt. General Manager

Rolling Mills

JOINT VENTURE OF RINL & POWERGRIDTECHNO ECONOMIC FEASIBILITY REPORT

FORTRANSMISSION LINE TOWER (TLT)

MANUFACTURING COMPLEX

Page 1 of 142©2014 MECON Limited. All rights reserved

01. INTRODUCTION

01.01 Background

Visakhapatnam Steel Plant (VSP) is an integrated public sector steel plant

owned by Rashtriya Ispat Nigam Ltd. (RINL), a Navaratna Company under

Ministry of Steel built with an annual production of about 3.6MT of liquid

steel per annum. Recently they have completed their expansion of

capacity up to 6.3 MT/yr through BF-BOF route with addition of new

rolling mills.

Power Grid Corporation of India Ltd. (POWERGRID), a Navaratna PSE

under ministry of power & the central transmission utility (CTU) of the

country, is engaged in power transmission business with responsibility of

planning, coordination, supervision and controlling over complete inter-

state transmission system and operation of national & regional power

grids. Power grid is playing a key role in Indian power sector directly

contributing to economic development of the country, through

establishing large and complex transmission network and as grid

operator.

RINL and POWERGRID are entering into a joint venture project to install

Transmission Line Tower (TLT) manufacturing complex with a view to





exploit the emerging opportunity in transmission line tower

manufacturing business in India and abroad. RINL will supply quality raw

material in form of re-rollable steel / black angles to the joint venture

company to further produce TLT.

1.02 The Assignment

RINL & POWERGRID have assigned MECON vide their letter no.

CSM/POWERGRID/I/ dated 9/3/2012 to go ahead for the preparation of

Techno-Economic Feasibility Report (TEFR) for setting up Transmission

tower Manufacturing Unit.

01.03 Content of the Report

The TEFR as set out in the following chapter covers the Introduction,

Executive Summary, Market analysis, Technological consideration, Site

selection & General layout, TLT Fabrication Unit, TLT Galvanizing Unit,

Electrics & Automation, Plant Services and utilities, Quality control

facilities, Civil & structural works, Manpower requirement, Project

implementation, Pollution control, Capital cost, Production costs and

Financial appraisal.





01.04 Acknowledgment

MECON places on record its deep appreciation and gratitude to the

Chairman cum Managing Director and other officials of RINL &

POWERGRID for the assignment and the guidance and cooperation

extended by them during preparation of this report.





02. EXECUTIVE SUMMARY

02.01 Introduction

Visakhapatnam Steel Plant (VSP) is an integrated public sector steel plant

owned by Rashtriya Ispat Nigam Ltd. (RINL), a Navaratna company under

ministry of Steel & Power Grid Corporation of India Ltd. (POWERGRID), a

Navaratna PSE under ministry of Power & the Central Transmission Utility

(CTU) of the country, are entering into a joint venture project to install

Transmission Line Tower (TLT) manufacturing complex with a view to

exploit the emerging opportunity in transmission line tower

manufacturing business in India and abroad. RINL will supply quality raw

material in form of re-rollable steel / black angles to the joint venture

company to further produce TLT parts.

02.02 Market Analysis

As analyzed in relevant chapter of this report, based on average demand

figures and average availability; the resultant gaps (-) / Surplus (+) are

summarized as below:





Year Demand Availability Gaps (-) /

Surpluses (+)

DOMESTIC

2012-17 4.10 3.60 -0.5

WITH EXPORT (+20%)

2012-17 4.90 3.60 -1.3

02.03 Technical Consideration

Installation of a Transmission Line Tower (TLT) manufacturing unit

requires analysis of important factors such as capacity of plant, availability

of raw materials, availability of infrastructure facilities and cost

considerations.

The capacity of proposed plant has been decided based on desk study of

requirement of TLT in the future considering the proposed massive

capacity augmentation plan in power sector. As emerged from the desk

study the plant capacity has been fixed as 120,000 t/yr. The Technological

unit capacity has been fixed considering the popular plant size capacity as

per existing units in India as well as abroad and the limitation in handling

no. of pieces annually in a unit etc.

The main technological units envisaged are:

a) TLT Fabrication Unit (2 units of 60,000 tpy each)





b) TLT Galvanizing Unit (2 units of 60,000 tpy each)

The black angles in the product – mix of RINL will be made available by

RINL. As per the product – mix & production schedules of RINL,

approximately 30% of the angles required would be provided by RINL.

Rest of the angles will be sourced from other market sources including

authorized conversion agents for which the input billets / blooms will be

made available by RINL. Proposed process flow are shown in the drawing

MEC/11/24/123J/TEFR/003.

02.04 Site Selection & General Layout

Site for TLT manufacturing complex has been finalized based on only

quantitative analysis & no techno economic calculation has been carried

out. Out of the three sites available, RINL site has emerged as the most

suitable site. Proposed site is located very close to the existing steel plant

of M/s RINL. Adequate acquired land is available at this site.

Layout of the proposed plant has been developed keeping in view of the

following:

a) Availability of adequate land.

b) Direction of Road entry to the plant.





c) Unidirectional flow of material suiting to the sequence of process

flow.

d) Safety considerations.

e) Provision of green belt.

A total area of approximately 50 acres has been envisaged inside the

complex boundary.

02.05 TLT Fabrication Unit

Two (2) TLT Fabrication Units of 60,000 t/yr capacity each has been

envisaged. The TLT Fabrication Units will fabricate the TLT parts as per

requirement of TLT unit.

The TLT Fabrication Units will use angles from RINL / conversion agents

/other market sources for fabrication of TLT parts. The plates required for

the production of TLT parts will be procured from outside market sources.

Multiple operations required during fabrication can be covered in single

state of the art CNC machine. Sufficient numbers of automated machines

with CNC state of the art technology have been envisaged to cater to the





requirement of fabrication shop to fabricate angles and plates as per

requirement.

An in-house Design department for production planning and preparation

of shop fabrication drawings has been envisaged with latest state of art

software & hardware.

For Inter-bay transfer of angles / cut pieces of angles, sufficient number of

Fork-lifts has been envisaged in the bay together with material transfer

trolleys and EOT cranes.

02.06 TLT Galvanizing Unit

Two (2) number TLT Galvanizing Units of 60,000 t/yr capacity each has

been envisaged. The TLT Galvanizing Units will hot dip galvanize the

fabricated TLT parts.

About 120,000 tons of fabricated TLT Parts will be galvanized annually for

the envisaged production. The maximum length of single part to be

galvanized has been envisaged as 8.5 m. A semi-automatic process for

galvanizing the TLT parts has been envisaged. The process of hanging the

TLT parts on to the Hangers / Jigs before Galvanizing process and

removing the TLT parts from the Hangers / Jigs after Galvanizing process





is manual. The Galvanizing process is automated. Galvanizing unit shall

include all pretreatment and post treatment facilities.

02.07 Plant Services & Utilities

02.07.01 Water Supply Facilities

Water for the proposed integrated complex for manufacturing

transmission line towers will mostly be required for direct and indirect

cooling of plants/ machines/ equipment with a part to be consumed for

drinking and sanitation purpose and other direct process and general

purpose needs. Individual recirculation system has been envisaged for

water systems of various plant units to effect extensive recycling and

reuse of return water from plant processes after necessary treatment and

conditioning.

02.07.02 Air Conditioning & Ventilation System

Ventilation and air-conditioning systems are proposed to provide proper

working conditions necessary for maintaining environment compatible

with human hygienic requirements and to maintain conditions necessary

for proper storage of materials and working of plant and equipment. The

ventilation and air-conditioning systems generally include one or more

items of equipment and accessories such as fans, air filters, air washers,





air-conditioning units, duct work, pumps, cooling tower, air supply grills,

dampers, insulation, instrumentation and controls, electrics, etc.

02.07.03 Fire Fighting Facilities

Many working premises in plant have hazardous and fire prone

environment. To protect the working personnel, equipment and

machineries, adequate safety and fire fighting measures have been

planned for the proposed plant.

02.07.04 Compressed Air System

A centralized compressed air station has been envisaged in order to meet

the requirement of industrial and instrument quality compressed air for

the proposed plant.

02.07.05 Inter Plant & In-Shop Piping Network

Inter-plant piping network will be provided with supporting structures for

supply of compressed air, instrument air and fuel oil to meet the process

requirement from compressed air station and fuel oil installation.

The interplant piping network shall consist of a common trestle / stockade

/ bridge carrying pipes from sources to consumers. In shop piping





network, consist of pipes carrying various fluids, will be supported from

building column / structures.

02.07.06 Fuel Gas / Oil Handling Facilities

The requirement of CO Gas for the Heating Furnaces in the Fabrication

Unit and for the Galvanizing Unit has been estimated based on specific

consumption per ton. Hourly consumption will be around 1100 Nm3/hr.

CO Gas will be tapped from RINL’s existing line and pipeline for

transporting the required quantity along with Nitrogen Line for purging

will be laid from the tapping point to the site.

In addition to above, provision for use of Furnace oil in case of shortage /

disruption of CO Gas supply has also been envisaged.

02.08 Quality Control Facilities

The proposed transmission line towers (TLT) Manufacturing Complex will

produce high quality galvanized transmission line towers according to the

stipulations of various national and international standards. In order to

achieve this objective, efficient and stringent quality assurance measures

are to be enforced at every stage of production. Quality assurance can be

implemented effectively in the form of analyses and test results which

can be provided only by well-equipped laboratories entrusted with day-





to-day quality control at all stages of processing and quality evaluation of

finished products.

02.09 Civil & Structural Works

The Civil works consists of site preparation, providing foundations of Main

building for Fabrication Unit, Galvanizing Unit together with equipment

foundations required and associated works for all plants, auxiliary

buildings, electrical control rooms, transformer rooms, laboratory,

compressed air station, pump house, MSDS, water supply facilities, etc.

suiting to the requirements of TLT Manufacturing Complex and other

service facilities like drainage, sewerage, roads, boundary fencing, site

leveling, etc.

Steel structural work will include supply, fabrication, erection & painting

of all structures of the following units:

a) TLT Fabrication Unit

b) TLT Galvanizing Unit

c) All related Piping support structures

d) Other Miscellaneous structures

The structures will include building structures, pipe trestles etc. for the

TLT Manufacturing Complex.





02.10 Manpower Requirement

Meticulous distribution of manpower is essential for uninterrupted

operation and proper maintenance of plant facilities. For the proposed

plant, the manpower requirement has been estimated based on the

following considerations:

- Production shops and their capacities.

- Type of equipment proposed for the main production shops and

corresponding auxiliary / services facilities.

- Degree of automation and mechanization envisaged in different

units.

- Extent of manning required for each equipment.

- Number of operating shifts.

- Supporting personnel for weekly off and leave reserves.

02.11 Project Implementation

The project has been planned to be completed in 16 month from “Zero

date” which is reckoned as “Start of ordering of Main Technological

Units”.

With a target of early realization & stabilization of manufacturing

facilities, it has been foreseen to stagger the implementation of proposed

Fabrication & Galvanizing Units. In this staggering process, one unit each

for Fabrication & Galvanizing may be commissioned first with the Input

Angles from RINL / Market as per the requirement and availability. The





second units for Fabrication & Galvanizing may be subsequently

commissioned.

This staggering of commissioning of different units will facilitate the JV in

two ways:

Stabilization of Fabrication & Galvanizing process / machines.

Unit will start producing required TLT parts to meet the huge

market demands. This will establish the standing of this complex in

the market before the Integrated Commissioning of Complex.

However, the execution of the proposed project would call for meticulous

planning, monitoring and control during engineering, procurement and

construction stage. Salient aspects relating to project implementation

strategy are covered in relevant chapter.

02.12 Pollution Control

The pollution control system for the proposed TLT Manufacturing

Complex can broadly be divided into the following three categories:

- Air pollution control

- Noise pollution control

- Water pollution control

Adequate measures have been envisaged so that all the treated effluents

let out of the complex will conform to permissible limits set by the

statutory authorities/pollution control boards.





02.13 Capital Cost

The capital cost of the proposed 120,000 T/Y capacity TLT manufacturing

complex proposed at VIZAG including galvanizing and other related

auxiliaries and services as envisaged has been estimated and summarized

as given below:

Sl. No. Description Cost (Crore Rs.)

1. Plant Proper 312.8

2 Interest during construction 12.3

3 Capitalized Land use charges 6.2

4 TOTAL 331.3

Including foreign exchange

component

106.0

02.14 Production Cost

The proposed TLT Complex has been envisaged to produce total of

120000 Tons of galvanized finished products annually. It is assumed that

the plant would operate at 80 % capacity during first year, 90% during

second year and 100 % during third year and onwards.

The average production cost excluding depreciation and interest during

third year of operation when the plant achieves rated capacity utilization,

works out to Rs 52,263/ton (rounded).





02.15 Financial Appraisal

Financial analysis has been carried out based on capital investment and

operating cost and Average net sales realization. The salient techno-

economic indices of the project have been summarized below:

SALIENT TECHNO-ECONOMIC INDICES

Sl. No. Item description Unit Indices

1 Cumulative retained profit over

10 years of operation

Crore. Rs. 267.2

2 Average annual retained profit over


Crore. Rs 26.7

3 Cumulative cash surplus over


Crore. Rs 186.3

4 Average Debt-service coverage ratio over 10

years of operation

Ratio 1.51

5 Pay-back period Years 7.9

6 Break even capacity % 63

7 Internal rate return (IRR) over 20 years

Of operation

Pre-tax

Post-tax

%

%

22.1

18.8





03. CHARACTERISTICS & END USES

03.01 OVERVIEW

Transmission line towers are used to transmit electricity at high voltage

(33kV to 800kV AC/DC) from power generation station to utilities, Sub-

stations / Load centers. Transmission line connects two nodes of the

power supply grid.

Generally the towers are of self supporting lattice steel type, designed to

carry the line Conductor with necessary insulators, earth wires and all

fittings under all loading conditions.

The towers are fully galvanized structure, using structural mild steel / high

tensile steel sections for members. Galvanized Bolts and nuts with spring

washers are used for connection.

These towers support one or more overhead line conductors (ACSR /

AAAC/Other types) carrying electrical power at high voltage, mostly 3-

phase AC circuits of voltages ranging from 33kV to 800kV. To prevent

safety against lightening, earth wire / OPGW are placed at tower peak.

OPGW (Optical fiber ground wire) is now being used instead of regular

GSS (Steel stranded wire) as it is being used for data transmission for





broad band as well as earthing the live conductors. The live conductors

are supported by Insulators which in turn is attached to tower cross arm

through Hangers / D’ shackles. To prevent short circuit between live and

earthed parts including the surrounding environment minimum mutual

clearances are prescribed for different voltage capacity of transmission

line as per recommendations of IS: 5613.

The tower are designed such that it can be attached to various body

extensions and leg extensions for maintaining adequate ground clearance

at various ground profiles/road/rail crossings etc.

03.02 TOWER CLASSIFICATIONS/DESIGNATIONS

Transmission Towers can be grouped based on various

design/functional/structural aspects as given below:

CRITERIA TYPES

STRUCTURAL ACTION TO LOADS SELF SUPPORTING TOWERS GUYED

TOWERS

NO. OF CIRCUITS SINGLE/DOUBLE/MULTIPLE CIRCUIT

TOWERS

POWER TRANSMISSION CAPACITY 33KV, 66KV, 132KV, 220KV, 400KV,





[VOLTAGE LEVEL] 765KV, 800KV, etc.

TOWER SHAPES VERTICAL/HORIZONTAL/DELTA/H

STRUCTURES

Mostly self supporting latticed steel towers are used in India and other

countries. These towers support the various loads coming on to the

structure on their own. The design aspects of these towers are covered

under Indian standard (IS: 802 — part 1, 2, 3). These towers are designed,

fabricated and tested prototype in line with various recommendations of

IS: 802.

These towers are made up of structural angle profiles of Mild steel and

high tensile steel grades and members are connected by bolts. Normally

these towers have square or rectangular base.

Guy towers comprise portal structures in ‘Y’ or ‘V’ shape and are

anchored to Ground through steel Guys. They have been used in some

countries for EHV lines up to 735 kV. Such towers occupy much larger

land space compared to self supporting towers and as such area used in

long unoccupied waste land, bush tracts in Canada, Brazil , Russia. In India

such towers are not being used.





TOWER DESIGNATIONS:

Towers are broadly designated as:

a) SUSPENSION TOWERS

b) ANGLE TOWERS

which are further declassified as per angle of deviation as given below:

TOWER

MARKINGS

DESCRIPTION ANGLE OF

DEVIATION

REMARKS

A/DA/MA Suspension Tower –

Used on straight line

stretch

00 - 20 Tower nomenclature

may vary

B/DB/MB Small angle tower 00 -150 D=> Double circuit

M=> Multiple Circuit

C/DC/MC Medium Angle Tower

/ Transposition

Tower

150 – 300

D/DD/MD Big angle Tower /

Dead End – Tower

300 – 600 /Dead

End





INDICATIVE STATEMENT OF TOWER WEIGHTS

(APPROXIMATE TOWER WEIGHT (MT)

Tower Type/TowerWeight 765KV 800KV 500KV 400KV 400KV 220KV

(WZ-4) S/C D/C HVDC HVDC D/C D/C D/CHORZ. DELTA QUAD TWIN

MS 8.5 11.1 22 15.3 8.4 9.3 6.9 2.4A/SA/DA HT 6.4 9.5 27.4 15.2 5.8 7.7 4.4 1.9

B&N 0.6 1.1 2 1.4 0.6 1 0.6 0.3Total 15.5 21.7 51.4 31.9 14.8 18 11.9 4.6Total

MS+HT 14.9 20.6 49.4 30.5 14.2 17 11.3 4.3

MS 9.6 17.7 23 14.2 8 8.6 6.6 4.2HT 8.5 12.8 71.6 30.7 9.5 19.3 9.8 2.1

B/SB/DB B&N 0.7 1.3 4.7 1.8 0.9 1.1 0.7 0.3Total 18.8 31.8 99.3 46.7 18.4 29 17.1 6.6Total

MS+HT 18.1 30.5 94.6 44.9 17.5 27.9 16.4 6.3

MS 13.7 19.1 35.5 13.4 11.6 9.1 6.1 4.3HT 11.1 18.3 68.6 40 9.5 22.8 11.9 2.4

C/SD/DC B&N 0.9 1.4 5.3 2.2 1.1 1.3 0.7 0.3Total 25.7 38.8 109.4 55.6 22.2 33.2 18.7 7Total

MS+HT 24.8 37.4 104.1 53.4 21.1 31.9 18 6.7

MS 18.8 21.7 26.7 24.7 14.9 15.2 10.1 4.7HT 16.7 22.4 78.6 36.7 11.2 24.9 14.9 3.6

D/DD B&N 1.3 1.8 4.7 2.6 1.2 1.8 0.9 0.4Total 36.8 45.9 110 64 27.3 41.9 25.9 8.7Total

MS+HT 35.5 44.1 105.3 61.4 26.1 40.1 25 8.3

Source: Tower weight data as per POWERGRID designs being used for variouslines.





Tower Structure MT per km(Plain Terrain) 57 77 192 111 49 67 42 18

Tower Structure MT per km(Hilly/Mount Terrain) 81 113 303 161 66 101 61 26

The above weights are for Normal (standard height) towers.

Weight of tower extensions +3/6/9 m are approx. 10 – 20% and extensions + 18/25

m are approx. 80 – 100% extra

INDICATIVE DISTRIBUTION OF TOWERS IN A TYPICAL TRANSMISSION LINE

Type of Terrain PLAIN TERRAIN HILLY/MOUNTAINOUSTERRAIN

400KV,765KV, 500KV

HVDC220KV 400KV, 765KV,

500KV HVDC 220KV

AVERAGE SPAN (m) 370 330 350 300Suspension Towers

(A/DA) 65% Nil

Tension TowersB/DB 7.5% 30%

C/DC 7.5% 30%D/DD 20% 40%

Approx. 20% of towers are with extensions

Average Weight of extension considered to be 20% of Standard tower weight

Factor for extension weight considered 1.04

03.03 GENERAL DETAILS OF TOWERS:

The broad scope of turnkey transmission line project involves following

activities:





a) Preliminary survey, detailed survey, tower spotting, optimization

of tower location, soil resistivity measurements and geo-technical

investigation,

b) Tower design, testing, fabrication and supply of all types of

transmission line towers including bolts, nuts and washer, hanger,

D-shackle and all types of tower accessories like phase plate,

number plate, danger plate, anti-climbing device, etc;

c) Design, selecting type of foundation for different towers and

casting of foundation for towers,

d) Erection of towers, tack welding of bolts and nuts, supply and

application of zinc rich paint,

e) Tower earthing,

f) Fixing of insulator string, stringing of conductors and earth wires

along with all necessary line accessories and

g) Testing and commissioning of the erected transmission lines.

Various steps involved in design of transmission tower are given below:

a) Sag — Tension Calculation

b) Fixing configuration by providing minimum required clearances

c) Loading Calculation

d) Loading Combination





e) Analysis & Design

f) Detailing

g) Prototype testing of towers

Normal Span

Normal span limits for different voltage capacity of transmission line are

as given in IS: 5613. Normal span of 400 m is generally considered for

400KV and 765Kv lines in India.

Wind Span

The wind span is the sum of the two half spans adjacent to the support

under consideration. For normal horizontal spans this equals to normal

span.

Weight Span

The weight span is the horizontal distance between lowest points of the

conductors on the two spans adjacent to the tower.

Minimum Ground Clearance

The minimum ground clearance from the bottom conductor shall not be

less than values stipulated in CEA’s safety regulations/IE rules for various

voltage levels at the maximum sag conditions.





Live Metal Clearance

The minimum live metal clearance to be provided between the live parts

and steel work of super-structure shall conform to IS: 5613

03.04 LOADING CONDITIONS

Loads at conductor and earth wire points

These loads are to be based on IS: 802 / Part-1 1995 and towers are to be

designed to cater for the following loads:

a) Reliability Loads (Normal condition)

b) Security Loads (Broken wire condition)

c) Safety Loads (Construction & Maintenance loads)

03.05 Tower Material

In general the grade wise consumption in overhead transmission tower

comprise about 30-40% of mild steel grade, 60-70 of high strength steel

and 4%-5% of nuts and bolts. The tower member are generally of

structural steel conforming IS 2062. The standard IS: 802 governs the use

of structural steel in overhead transmission line towers which gives the

details of grades of steel to be used in tower members i.e. angles, bolts,

nuts, washers. Profile wise about 90% angle, 4-6% plates and 4%-5% nuts

& bolts are normally being used in Transmission tower. The related size





tolerance in angles products are governed by IS 808 / DIN 1028.

Sometime unequal angles are also being used in design of Transmission

tower.

03.06 TOWER FABRICATION EARTHING/TESTING/ACCESORIES

Galvanizing

Fully galvanized towers and stub are used for the line. Galvanizing of the

member of the towers shall conform to relevant Indian standards.

TOWER EARTHING

All the towers are to be earthed. In no case tower footing resistance shall

exceed 10 ohms in accordance with the stipulation made in IS: 5613

TOWER LOAD TESTS

Galvanized tower of each type complete with Maximum body and leg

extension is subjected to design and destruction tests as per

recommendations of IS: 802.

TOWERS ACCESSORIES.

Various accessories used on a typical transmission line are Step Bolts,

Insulator string and Earth wire Clamps Attachments, Anti climbing Device,

Danger plates, Number plates, Circuit Plate, Phase Plate & Bird Guards.





04.0 MARKET ANALYSIS

04.01 Indian Power Transmission Scenario

The resolve of nation for “Power to all” led to massive capacity

augmentation plans in Power Sector envisaging creation of capacities in

generation as follows (Table-04.01).

Table-04.01

Creation of capacities in generation

Item 2006-2007 2016-17

Generation including

captive generation

140 GW 331 GW

Source: Ministry of Power

The ardent need to evacuate this power and deliver it to consuming

centers coupled with the fact that Indian power landscape is

characterized by widely spread load centers and generation resources

wherein majority of load centers are located in South and West and

generation resources in East/ North- eastern part of country and this

typicality pressed up the need for massive augmentation of Transmission

& distribute network which stands already underinvested in the past.

In view of above, power transmission lines, particularly the bulk power

transmission system came in focus and Towers being the most important

as well as expansive constituent of the system were studied by CEA and a

synopsis w.r.t. steel requirement for the same assessed as per projections

for XIIth five yr plan and the same has been brought out by CEA and

presented hereunder:





Table - 04.01

CEA’s projection of steel requirement for transmission towers

Sl.

No.

Voltage

(KV)

By XIIth Plan

(Ton)

Type of Steel

MS HTS

1. 765 416000 60% 40%

2. 500 413640 60% 40%

3. 400 2088680 60% 40%

4. 220 464600 100% -

5. 132 36400 100% -

Total 3746920

Say 3.7 MT

Source: CEA Document “Requirement of equipment & material for

development of power sector”

04.02 Demand Analysis

Attempt has been made to assess the realistic demand of towers and

thereby, steel requirement (angles) based on other approaches as

outlined hereunder.

Alternative Approach

Based on normative consideration, a projection for tower requirements

has also been made by the central transmission utility (POWERGRID) as

presented below:





Table-04.05

Sl.no.

Voltagelevel(KV)

Expectedadditions

during 12th

plan(CktKms)

Average Specific steelrequirements (Tons/CktKm) assuming Plain to

hilly terrain ratio as 85%and 15% respectively

Total estimatedtower wt(Million

Ton)

1 765 27000 98 2.65

2 800/50

0 HVDC

Bipole

9440 53 0.50

3 400 38000 30 1.14

4 220 35000 10 0.35

Grand

Total

109440 4.64

Angle requirement@95% 4.41

Source: Indicative data from POWERGRID based on Draft electricity plan

of CEA (Feb’12)

13th Plan: 30% more requirement as per CEA’s Electricity Plan

Final demand assessment

Based on the above two approaches (CEA and POWERGRID Based data),

the average demand figures works out as follows:

Estimated Demand (2012-17) 4.1 Million Metric Ton





04.03 International Scenario

The international capex cycle for power sector is observed as follows (Fig-

04.01 and Table-04.06):

0

500

1000

1500

2000

2500

OECD E.EUROPE ASIA MIDDLE EAST AFRICA LATIN AMERICA

IN B

ILLI

ON

US

$

Generation Transmission Distribution

Source: Indbank / merchant banking Ltd. Assessment for Kalptaru Power

Transmission and corroborated by CRISIL study.

Fig-04.01: International capex cycle for power sector

The scenario exhibits development and growth concentrations in OECD1 and

Asian region.

Table-04.06

International capex cycle for power sector (In Billion US$)

Region Expected

Capacity

Additional (GW)

Generation Transmission Distribution

OECD 514 982 279 656

1 OECD = Organization of Economic Co-operation and Development





E. Europe 137 180 55 183

Asia 781 794 433* 894

Middle Cast 78 59 32 67

Africa 59 59 28 58

Latin

America

121 123 41 84

World Total 1691 2197 867 1947

*India by 12th plan is assumed included as 42 Billion$

Source : Internet

It is obvious from the above table that T&D network of various countries

are undergoing massive change in terms of replacement, up gradation

and fresh capacity creations. The total anticipated transmission sector

outlay of 867 Billion US$ can be viewed to have been contributed to the

tune of 20% by transmission towers as per typical cost structure of power

sector. The expected market for towers stands around 173 billion US$, by

2016-17, with largest share taken by Asia and OECD countries and this is

an indication of good export potential in these countries for transmission

towers. Also, based on information available on websites of various

domestic tower manufacture, it is expected that US from CY’ 2012

onwards will be the largest spender on T&D sectors. Given this positive

scenario, significant growth opportunities are expected in Middle East,

Africa, South Asia and CIS countries from this project.





04.04 Availability

Tower manufacturing capacity

Transmission tower manufacturing Industry is typically very fragmented

sector marked by presence of large number of small capacity

manufacturers making the estimation of available capacity difficult.

However, some of the major player and capacities thereof are listed in

Table-04.07.

It is important to note that the available capacities are utilized to

manufacture mobile towers, microwave towers, High mast illumination

towers and substation structures too. This makes the job of assessing the

available capacity for towers production further difficult as disaggregated

production data from manufacturers are not available and thus suitable

assumptions are to be made to deduce the required figures.





Table-04.07

Tower manufacturing capacity

Source: Indicative PGCIL data





Capacity Utilization of Industry

From the above table, estimated allocable capacity for towers works out around

1.2 Million metric ton with average annual industry capacity utilization around

70%. With this assumption the likely availability figure for towers has been

considered as 0.84 Million Metric Ton for the year 2013-14. It has been further

assumed that in view of impetus infused in form of incentives for power sector in

recently announces budget, the orders may flow and the capacity utilization may

improve to 80 % (average) during XIIth plan and thus a figure of 0.96 Million

Metric ton/yr has been assumed during XIIth plan period.

Availability of angles for electric towers

CASE-I

Based on above approch, the angle requirement has been estimated as 0.96

Million Tons/yr for period over 2012-17. The results are summarized hereunder:

Average availability during 2012-17 0.96 Million Metric Tons/yr

CASE-II

Angles for electric towers are made from structural products in Light Merchant

Products (LMP) as well as sections in Medium Merchant Products (MMP). The

availability of angles for electric tower is derived based on the following

assumptions:





LMP

Share of structural in LMP = 21.9% (estimated from projected values bars & rods

and structural in LMP)

Share of use for LMP in power sector = 40% of structural in LMP (applied on

projected supply of LMP)

Share of angles in LMP for power sector = 95%

MMP

Share of medium sections in MMP = 36%

Share of medium sections for use in power sector = 14%

Share of angles in medium sections for use in power sector = 90%

Total availability is assumed to increase by a CAGR of 5% during 2011-12 to 2016-

17.

Based on the above assumptions, the likely availability of angles for use in electric

towers are as follows:

Average Availability during 2012-17 0.50 Million tons/y

Total estimated availability over XIIth plan period (2012-17)

Estimated availability from the above figures of Case-I and Case-II are as follows:

2012-17 3.6 Million tons





04.05 Resultant Gaps (-) / Surplus (+)

Based on average demand figures and average ability; the resultant gaps (-) /

Surplus (+) are summarized as below (Table-04.08):

Table-04.08

Resultant Gaps / Surpluses (Million Tons)

Year Demand Availability Gaps (-) / Surpluses (+)

DOMESTIC

2012-17 4.10 3.60 -0.5

WITH EXPORT (+20%)

2012-17 4.90 3.60 -1.3





05. TECHNOLOGICAL CONSIDERATION

05.01 General

Installation of an Integrated Transmission Line Tower (TLT) manufacturing

unit requires analysis of following important factors such as capacity of

plant, availability of raw materials, availability of infrastructure facilities

and cost considerations

As indicated in related chapters that this plant will be a joint venture

between RINL and POWERGRID and the major input material for the unit,

i.e., black angles and billet / blooms for conversion into black angles will

be made available from RINL Integrated steel plant located at Vizag. The

capacity of proposed plant has been decided based on desk study of

requirement of TLT in the future considering the proposed massive

capacity augmentation plan in power sector. As emerged from the desk

study the plant capacity has been fixed as 120,000 t/yr. The various

components of transmission towers are angles, plates and bolts & nuts.

05.02 Process Flow

Proposed process flow is shown in the drawing

MEC/11/24/123J/TEFR/003.

The Technological unit capacity has been fixed considering the popular

plant size capacity as per existing units in India as well as abroad and the

limitation in handling no. of pieces annually in a unit etc.





05.03 Technological Options

05.03.01 General

As indicated in the above process flow the proposed plant will produce

approximately 120,000 t/yr of TLT. The various process involved in the

production of TLT are as follows.

1. Fabrication of angles as per design drawing of TLT to produce

various parts of tower.

2. Galvanizing of various parts fabricated in fabrication unit.

3. Dispatch of galvanized tower parts to construction site.

05.03.02 Input

Transmission line tower normally requires equal angles starting from 45

to 250 mm as per IS 808 / DIN 1028 / Equivalent international standard.

Transmission tower also requires gusset plates which are fabricated from

plates of thickness from 10 mm to 40 mm.

The various angle sizes required by transmission line tower falls in the

following various categories of section products.

Light section - up to 65 mm thickness <8mm

Medium section - 70 – 110 mm thickness <12mm

Heavy section - 120 – 250 mm thickness >12mm





The angle sizes required by transmission tower fall in light, medium as

well as heavy section range. Considering the large size range required by

transmission tower, the various input sizes of semis required from RINL

are given below:

90x90, 125 x 125, 150 x 150, 200 x 200, 250 x 250, 320 x 250 mm

The angles available in the product-mix of RINL will be procured from

RINL. For rest of the angles, semis/billets/blooms will be procured from

RINL and converted into black angles through conversion agents or black

angles shall be directly sourced from the market as per requirement.

05.03.03 TLT Fabrication Unit

The various processes involved in the fabrication are as follows:

Angles

- Angle straightening

- Punching

- Drilling

- Marking / numbering

- Shearing / band sawing

- Notching

- Bending

- Punching after bending

- Heel milling for LAP joints of angles.

Plates

- Plate shearing





- Plate thermal cutting

- Punching

- Drilling

- Marking

- Bending

Various types of machines are available where various operations

required during fabrication can be covered in one machine with state of

art CNC machines. Sufficient numbers of automated machines with CNC

state of art technology have been envisaged to cater to the requirement

of fabrication shop to fabricate angles and plates as per requirement. We

have envisaged fabricating about 75-80% of angle sections within 120 x 12

mm and remaining angles sections in the range 120 to 250 mm will be

about 20%-25%. About 40-45% angles will be notched in the process.

About 4-6% plates have been considered for fabrication.

05.03.04 TLT Galvanizing Unit

The various processes involved in galvanizing process are as follows:

- Degreasing of tower parts with sodium hydroxide solution.

- Pickling to clean up the surface with HCL solution.

- Rinsing twice with fresh water to remove the acid content.

- Fluxing with synthetic flux to prepare surface for galvanizing

- Drying on hot plate

- Dipping in zinc bath with 99.95% pure zinc at 450°C to 465°C

temperature.

- Quenching in water.





- Dichromating

- The galvanizing thickness is normally 460 gms per sq. meter for

members below 5 mm thickness and 610 gms per sq. metre for

members above 5mm thickness.

- With this, the finished tower parts get ready for dispatch to sites.

Considering the annual requirement of the plant a semi automatic

operation have been considered. Suitable automation in bay crane have

been considered to take care of process requirement. Galvanizing Kettle

shall be suitable for oil / gas firing. Galvanizing unit shall have requisite

provision for fume extraction and effluent treatment.





06. SITE SELECTION AND GENERAL LAYOUT

06.01 General

Site for TLT manufacturing complex has been finalized based partly on in

house data available with MECON and partly on Site visit at Vizag. Some

major factors have been considered and conclusion has been drawn on

the ten point scale basis. The major factors considered and their ratings

are shown in Table-06.01. In absence of site visit, only quantitative

analysis has been done & no techno economic calculation has been

carried out.

Table – 06.01

Comparison of RINL site with other sites

Sl.

No.

Description of

Features

SITE-1

(Hyderabad)Rating

SITE-2

(Vizag –

outside

RINL)

Rating

SITE-3

(RINL-

Vizag)

Rating

1. Availability of

Land

Available 10 Available 10 Available 10

2. Ease of land

acquisition

May take

time and

lots of

8 May take

time and

lots of

8 Land is

already

under

10





Sl.

No.

Description of

Features

SITE-1

(Hyderabad)Rating

SITE-2

(Vizag –

outside

RINL)

Rating

SITE-3

(RINL-

Vizag)

Rating

problems

are to be

solved

problems

are to be

solved

possession

3. Rehabilitation Few houses 7 Few houses 7 Not needed 10

4. Forest land Very small

patches

8 Very small

patches

8 Nil 10

5. Soil conditions O.k. for

medium

load

8 O.k. for

medium

load

8 O.K even

for heavy

foundations

9

6. Infrastructure Will have to

be

developed

8 Will have

to be

developed

8 Already

developed

10

7. Site

development

Required 8 Required 8 Already

developed

10

8. Distance of

Input source

340Km 6 45Kms 8 3 Km 10

9. Distance of

Despatch of

Various

Metro cities

8 Various

Metro

8 Various

Metro cities

8





Sl.

No.

Description of

Features

SITE-1

(Hyderabad)Rating

SITE-2

(Vizag –

outside

RINL)

Rating

SITE-3

(RINL-

Vizag)

Rating

Finished

product.

and other

consumers

cities and

other

consumers

and other

consumers

Sum Total 71 73 87

Ranking III II I

On the basis of the information indicated in the above table and also that

RINL-Vizag site has added advantage of port facilities, management

control, unidirectional flow of materials such as billet, bloom, oxygen,

mixed gas and other inputs.

As such out of the three sites available, RINL site has emerged as the most

suitable site.

06.02 Location

Proposed site is located very close to the existing steel plant just outside

the plant boundary of M/s RINL in the Northern side of the existing RINL





steel plant and very close to the existing rail gate. Adequate acquired land

is available at this site.

06.03 Road

A well developed road network exists around the site which can be

utilized for both in coming billet/bloom from the RINL plant and dispatch

of finished TLT to various destinations.

Adequate numbers of Hydras & Trucks have been envisaged for

transportation of material from one shop to the other and to & from

Intermediate Storage areas.

06.04 Water

It has been assumed that water for this site will be easily available from

dedicated bore wells.

06.05 Power

Power for the proposed plant can be made available from the existing

power grid source which can be brought to the switch yard of the

proposed plant site.





06.06 Rational of Layout

Layout of the proposed plant has been developed keeping in view of the

following.

f) Availability of adequate land.

g) Direction of Road entry to the plant.

h) Unidirectional flow of material suiting to the sequence of process

flow.

i) Provision for future expansion.

j) Safety considerations.

k) Provision of green belt.

A total area of approximately 50 acres has been envisaged inside the

complex boundary.

Major units are: Black angle storage, Fabrication and galvanizing units,

Prototype assembly & Finished product Storage / dispatch area,

administrative building & Truck parking area.

The relative locations of various plant units have been depicted in the

drawing no MEC/11/14/123J/TEFR/001.





Black Angle storage has been envisaged just at the entrance gate after the

truck parking area on the entry side of the TLT fabrication units for

smooth flow of Input angles. Fabrication and galvanizing units have been

placed adjacent to the storage of black angles. Finished product storage &

dispatch as well as Prototype assembly areas have been planned adjacent

to the Galvanizing units. Auxiliaries and administrative building are

planned adjacent to the main units. Suitable size truck parking unit have

been planned near the raw material entry gate as well as near finished

product dispatch gate. Just between the two gates, Green Park has been

planned. Apart from this all around the periphery of the complex green

belt has been planned.

A well planned road network has been envisaged to cater to the needs of

the various plant units.

06.07 Main features of the plant:

a) Area within the plant boundary: 50 Acres (approx.)

b) Length of boundary wall: 2.0 Km (approx.)

c) Length of road: 1.6 Km (approx.)

d) Number of Road weigh-bridge: 2

e) Number of Gates: 2

f) Number of watch tower: 7





07 TLT FABRICATION UNIT

07.01 General

Two (2) TLT Fabrication Units of 60,000 t/yr capacity each has been

envisaged. The TLT Fabrication Units will fabricate the TLT parts as per

requirement of TLT unit.

The TLT Fabrication Units will be working for about 300 days per year and

3 shifts per day. The black angles in the product – mix of RINL will be

made available by RINL. As per the product – mix & production schedules

of RINL, approximately 30% of the angles required will be provided by

RINL. Rest of the angles will be sourced from conversion agents (for which

input billets / blooms will be made available by RINL) or other market

sources. The plates required for the production of TLT parts will be

procured from outside market sources. About 117,990 tons of angles &

6,600 tons of plates will be required annually for the envisaged

production.





07.02 Product Mix

The product mix of TLT Fabrication units is given in Table-07.01.

Table-07.01

Sl.

No.Product

Input Size Range

(mm)

Quantity

(tons/yr)

a) Angles 45 x 45 – 250 x 250 114,000

b) Plates Up to 40mm thick 6000

Total 120,000

07.03 Major Facilities in TLT Fabrication Unit

Plant and Machinery requirement for the proposed unit has been

estimated considering product mix based on tower weight and section

wise requirement for different type of towers. It is envisaged that

generally 40% of the capacity shall be used for 400KV and 60% for 765KV

lines.

For finalization of the number and types of machine in the TLT Fabrication

unit, we have considered that about 75-80% of angle sections within 120

x 12 mm and remaining angles sections in the range 120 to 250 mm will

be about 20%-25%. About 40-45% angles will be notched in the process.

About 4-6% plates have been considered for fabrication.





Multiple operations required during fabrication can be covered in single

state of the art CNC machine. Sufficient numbers of automated machines

with CNC state of the art technology have been envisaged to cater to the

requirement of fabrication shop to fabricate angles and plates as per

requirement.

Major facilities envisaged for the TLT Fabrication Unit with their brief

technical features are given below:

Sl.No. Equipment / facilities Technical feature

Quantity(for 1Unit)

1. CNC angle punching,

marking and shearing

line

For angles 30x30x3 to

120x120x12mm sizes 4



line with Notching CNC

unit


120x120x12mm sizes2



line (with 4 punches)


160x160x16mm sizes 2




160x160x16mm sizes1






Quantity(for 1Unit)

line (with 6 punches)

5. CNC angle drilling,

marking


250x250x40mm sizes3

6. Semi Automatic heel

milling machine

For angles 40x4 to

250x40mm sizes2

7. Angle punching and

shearing machine

For angles post bending2

8. Gas cutting machine with

plasma torch

For plates1

9. CNC plate processor

machine

For Punching, marking,

drilling, plasma and Oxy

cutting of plates

1

10. CNC plate punching,

marking and drilling

machine

For plates

1

11. Semi – Automatic

punching machine

For plates1

12. Manual UniversalPunching, Stamping,Shearing, Notching for500mm plate, 150x16

For angles / plates2






Quantity(for 1Unit)

angles13. Angle notching machines For Manual notching of

angles6

14. Radial drilling machines For Manual drilling of

angles / plates4

15. Angle heating furnaces For heating of angle

before bending4

16. Hydraulic bending

presses

For bending4

17. Plate shearing machine For Plates up to 20mm

thickness1

18. Manual Press For marking characters 2

19. Angle Grinder 5

20. Straightening Machines 2

21. Band Saw 3

22. Other manual machines

for angles & Plates,

Machine Shop

Equipment, like, shaping

machine, various

LOT






Quantity(for 1Unit)

measuring instruments,

etc.

23. MIG Welding machine

along with its accessories

24. TIG Welding machine

along with its accessories

Adequate number of the above machines has been envisaged in order to

meet the annual capacity of the fabrication units. The production

capacities of individual machines depend primarily on the tower design,

i.e., the size of angles being processed and the number of holes / cuts /

notches required to be done on each piece. We have considered that

about 75-80% of the angles are in the size range up to 120x12mm and 20-

25% of the angles are in the size range above 120x12mm. Tower designs

with greater share of angle in bigger size range will improve the

production capacity of the fabrication units accordingly.

07.04 Process

The angles procured from RINL / from conversion agent / other sources

will be stored in the storage area. The angles will be brought from the





Intermediate storage area to the open Input angle storage bay by trucks /

hydra as per the production planning. The Input angles will be stored in

this storage area as per the sizes / grades in the pre-designated locations.

An in-house Design department for production planning and preparation

of shop fabrication drawings has been envisaged with latest state of art

software & hardware.

Further, the angles / plates will be fed to the respective fabrication lines

as per the production planning with the help of transfer trolleys provided.

The angles will be cut into pieces, holes will be punched / drilled and the

parts will be marked as per the manufacturing design drawings. The

angles will be transported from one line to the other as per the process

requirement with the help of Bay cranes / Forklifts as per the

requirement.

The fabricated TLT parts after QA clearance will be tagged as per the

order / part number and will be sent to the Galvanizing Unit for further

processing.

07.05 Auxiliary Facilities

Auxiliary facilities such as hydraulic systems, lubrication systems, etc. will

be part of the individual machines.





07.06 Layout

The layout of the TLT Fabrication Unit as shown in Drawing No

MEC/11/24/123J/TEFR/002 will ensure smooth and unobstructed

movement of men and materials in the Fabrication bays with minimum

handling.

The TLT Fabrication Unit complex will be mostly of steel structures and

will comprise of bays and administrative building. The shop floor will be at

±0.00 level. Major parameters of each TLT Fabrication Unit are given

below:

Sl.

No.

Bay

Designation

Bay Size

(m)

Crane

Capacity

(t)

Qty.Crane Rail

Height (m)Remarks

1.Angle Storage

Bay108 x 25 5T 1 7

Pendant

Operated

2.Fabrication

Bays

108 x 25 x

3 bays5t 3 7

Pendant

Operated

3.Finished

product

108 x 25 x

2 bays5t 2 7

Pendant

Operated





Storage Bay

4.Administrativ

e Building

75 x 12 x 2

stories-- -- -- --

For Inter-bay transfer of angles / cut pieces of angles, sufficient number of Fork-

lifts (4 nos.) has been envisaged in the bay.





08 TLT GALVANIZING UNIT

08.01 General

Two (2) number TLT Galvanizing Units of 60,000 t/yr capacity each has

been envisaged. The TLT Galvanizing Units will hot dip galvanize the

fabricated TLT parts.

The TLT Galvanizing Units will be working for about 300 days per year and

3 shifts per day. The TLT Galvanizing Units will use TLT parts fabricated in

the In-house fabrication unit. About 120,000 tons of Fabricated TLT Parts

will be galvanized annually for the envisaged production.

The maximum length of single part to be galvanized has been envisaged

as 8.5 m. A semi-automatic process for galvanizing the TLT parts has been

envisaged. The process of hanging the TLT parts on to the Hangers / Jigs

before Galvanizing process and removing the TLT parts from the Hangers

/ Jigs after Galvanizing process is manual. The Galvanizing process is

automated.

08.02 Product Mix

The product mix of TLT Galvanizing Unit is given in Table-08.01.





Table-08.01

Sl.

No.Product

Size Range

(mm)

Quantity

(tonnes/yr)

a)Fabricated Angle

parts45 x 45 – 250 x 250 114,000

b)Fabricated Plate

partsUp to 40mm thick 6,000

Total 120,000

08.03 Process Sequence

The various processes involved in galvanizing process are as follows:

- Degreasing of tower parts with sodium hydroxide solution.

- Pickling to clean up the surface with HCL solution.

- Rinsing twice with fresh water to remove the acid content.

- Fluxing with synthetic flux to prepare surface for galvanizing

- Drying on hot plate

- Dipping in zinc bath with 99.95% pure zinc at 450°C to 465°C

temperature.

- Quenching in water.

- Dichromating

- The galvanizing thickness is normally 460 gms per sq. meter for

members below 5 mm thickness and 610 gms per sq. metre for

members above 5mm thickness.

- With this, the finished tower parts get ready for dispatch to sites.





08.04 Major Facilities in TLT Galvanizing Unit

Major facilities envisaged for the TLT Galvanizing Unit with their brief

technical features are given below:

Sl.

No.Equipment / facilities Technical feature

1. Loading Hangers Adequate number of fabricated

steel hangers for loading the TLT

parts has been envisaged.

2. Degreasing Tank For cleaning the TLT parts with

sodium hydroxide solution.

3. Pickling Tank 4 nos. tanks for pickling the TLT

parts with HCl solution

4. Rinsing Tanks 2 nos. rinsing tanks for rinsing

the acid from TLT parts

5. Fluxing Tank 1 no. fluxing tank for treating

the TLT parts with synthetic flux

to prepare the surface for

galvanizing

6. Drying Hot Plate 1 no. for drying the TLT parts

before dipping into the Zinc





bath

7. Galvanizing Kettle (Size

10.5x1.5x3)

1 no. for dipping the TLT parts in

zinc bath with 99.95% pure zinc

at 450°C to 465°C temperature

8. Quenching Tank 1 no. for cooling the Galvanized

TLT parts to below 100°C

9. Dichromating Tank 1 no. for treating the Galvanized

TLT parts with Dichromate

solution for surface protection

10. Fume Exhaust System For clearing the acidic fumes as

well as zinc fumes.

11. Effluent Treatment Plant For treatment of acidic as well

as alkaline effluents.

08.05 Process

The TLT parts fabricated in the TLT Fabrication unit, adjacent to the

Galvanizing Unit will be brought to the loading area of the preparation

bay and will be manually loaded on to the Hangers with the help of Steel

wires. The loaded hangers with counted number of pieces will then be





transferred to the Galvanizing bay with the help of an inter-bay transfer

car.

The loaded Hanger will be taken by the automated crane in the

galvanizing bay and will be dipped in the various tanks for the durations

as entered for that particular lot in the software.

The loaded hanger after coming out of the galvanizing chamber will be

transferred back to the unloading area of the preparation bay where the

galvanized TLT parts will be manually unloaded and counted for

accounting for all the pieces initially loaded on to the hangers. The

galvanized TLT parts are further manually brushed / filed for finishing and

packaged before transferring the same to finished product storage bays.

Galvanizing kettle shall be suitable for oil/gas firing.

08.06 Auxiliary Facilities

Auxiliary facilities such as hydraulic systems, lubrication systems, etc. will

be part of the individual machines.

08.07 Layout

The layout of the TLT Galvanizing Unit as shown in Drawing No.

MEC/11/24/123J/TEFR/002 will ensure smooth and unobstructed





movement of men and materials in the Galvanizing bays with minimum

handling.

The TLT Galvanizing Unit will be mostly of steel structures and will

comprise of bays and administrative building. Fume exhaust system has

been envisaged and is located by the side of the building. The shop floor

will be at ±0.00 level. Major parameters of the TLT Galvanizing Unit

complex are as given below:

Sl.

No.

Bay

Designation

Bay Size

(m)

Crane

Capacity (t)Qty.

Crane Rail

Height (m)Remarks

1.Preparation

Bay144 x 25 5t 2 7

Pendant

Operated

2.Galvanizing

Bay144 x 25 2x4t 2 7

Pendant

Operated

3.Galvanizing

Bay144 x 25 2x5t 1 7

Pendant

Operated

5 nos. Transfer trolleys for transferring fabricated parts from Fabrication units to

galvanizing unit and for transferring Galvanizing parts from galvanizing unit to

finished product storage bays have been envisaged.

2 nos. Transfer car for transferring loaded hangers to and from galvanizing bays

have been envisaged.





09 ELECTRICS & AUTOMATION

09.01 Power requirement

The estimated power requirement of the proposed “Integrated Complex to

manufacture Transmission Line Towers” is 3.5 MW.

MD (MW) Annual Energy Consumption in Million Units (MU)

3.5 4.5

09.02 Source of Power supply:

Power requirement for the proposed plant shall be met preferably through 11 kV

feeders drawn from the nearest APSEB substation.

09.03 Power Distribution scheme

As described earlier, Power requirement for the proposed TLT complex shall be

met from 11 kV feeders drawn from the nearest APSEB substation. Presently, the

power is assumed as available at 11kV at Substation.

Two (2) nos. outgoing feeders of 11 kV Substation shall be used for tapping 11 kV

power supply and same shall be taken to new 11kV switchyard located near





newly proposed “Complex to manufacture Transmission Line Towers” thro new

intermediate transmission line towers using new transmission line conductors.

The downstream power distribution network comprises 11 kV / 415 V

transformers of appropriate ratings to meet the requirements of loads.

The proposed power distribution arrangement in phase wise manner is described

below:

Capacitor bank with reactors has been envisaged to take care of voltage

fluctuations, reactive power compensation and suppression of harmonics. Power

factor compensation has been foreseen to achieve overall power factor in the

region of 0.9 and above.

Main Plant Unit11 / 0.415 kV Distribution Double

ended Substation

Water supply / ETP / Fire fighting 2x1.0 MVA AN type

Gas/oil/ Compressor /cranes / air

cond./Ventilation / Lighting

2x1.0 MVA AN type

TLT Fabrication Units 2x1.6 MVA AN type

TLT Galvanizing Units 2x1.6 MVA AN type





09.04 Design considerations

The power distribution network has been designed as a radial system, with two

alternative supply feeders to the load centre.

The design of power distribution system and selection of equipment has been

done based on the considerations of safety, reliability, ease of operation &

maintenance as well as convenience of future expansion.

The equipment shall conform to relevant Indian Standards, IEC specifications and

other applicable code of practice to meet the operational requirements and to

ensure reliable and trouble free service in the plant.

Basic Design Parameters

Incoming Power supply : 11 kV, 3 Ph, 50 Hz.

Drives and other consumers : 415 V, 3 ph, 50 Hz

Illumination and small power : 240 V, 1 ph. 50 Hz

Control power supply AC : 240 V, 1 ph, 50 Hz

DC : 220 V & 110 V

System Earthing

- 415 V : Effectively earthed

Symmetrical Short Circuit level

- 11 kV bus : 31.5 KA, 3 sec.





- 415 V bus : 50 KA, 1sec.

09.05 Major Facilities

09.05.01 11 kV Outdoor Switchyard

Two (2) nos outgoing feeders of existing 11kV Substation has been

envisaged for tapping existing 11kV power supply and same shall be taken

to newly proposed “Complex to manufacture Transmission Line Towers”

thro new intermediate transmission line towers using new transmission

line conductors.

The equipment design is based on capacity to withstand Short circuit

current of 31.5 kA, 3 second. Necessary system protections such as

distance protection, bus differential, transformer differential, over

current, earth fault etc have been foreseen. Aluminium pipe / ACSR

conductor has been considered for bus bars and interconnections.

09.05.02 HT Switchgear

The 11 kV switchgear shall be indoor type sheet metal clad, draw out type

comprising of VCB circuit breakers and shall be provided with necessary

protection, control gear, metering and audio-visual alarm annunciation

system. The circuit breaker mechanism shall be mechanically and





electrically trip free. The circuit breakers shall be electrically operated,

stored energy type.

09.05.03 415 V Switchgear

The 415 V switchboards shall comprise of air circuit breakers, in draw out

design and multi tier formation. The switchboard shall have two bus

sections and a bus coupler breaker with provision for auto changeover in

the event of loss of power of any one-bus section.

The circuit breakers shall be electrically operated and equipped with

microprocessor / static type direct acting releases for over load and short

circuit as well as earth fault protection.

All motor control centers (MCCs), large drives (above 110 kw) and power

distribution boards (PDBs) shall be supplied power from the 415 V

switchboard. The 415 V switchgear shall confirm to relevant IEC

specifications.

09.05.04 Transformers

The transformers shall conform to relevant IS and IEC specifications. The

11 kV transformers shall be copper wound, oil immersed, three phase and

ONAN design.





Off circuit tap-changers shall be provided for 11/0.415 kV distribution

transformers.

All the standard accessories such as conservator, breather, Buchholz

relay, OTI, WTI, oil level gauge, valves, explosion vent etc. shall be

provided for all the transformers.

09.05.05 Cables

Power inside the plant shall be distributed through cables to various

premises. Inter plant cabling has been envisaged through cable tunnel/

cable Trenches. Wherever necessary and where the cables are in small

number, these will be directly buried underground. Wherever cables are

in large number, concrete channels shall be used. GI pipes/ pipe blocks

shall be used at road crossings and paved area for protection of cables

against mechanical damage. Inside the substations and covered premises,

the cables shall be laid in basement or in concrete channels (over cable

supporting structures) or on columns and other available structures.

Power cables shall be laid on ladder type GI cable trays, whereas control

cable shall be laid on perforated cable trays.





All 11 kV cables shall be heavy duty, XLPE insulated, PVC sheathed multi

core, aluminum conductor steel wire armoured and shall be suitable for

resistance earthed/unearthed system.

Cables for 415 V systems shall be heavy duty, 1.1 kV grade, PVC insulated

PVC sheathed aluminum conductor, armoured / unarmoured as required.

The control cables shall be multi strand copper conductor, PVC insulated

and PVC sheathed with minimum cross section of 2.5 sq.mm /1.5 sqmm

for voltage circuit.

The HT cables, LT power and control cable shall confirm to relevant IEC

specifications.

09.06 Environmental conditions:

The following environmental conditions have been considered for

equipment design:-

Electrical equipment located outside Electrical Control Rooms (ECRs)

shall be designed for maximum ambient temperature of 50C and

maximum relative humidity of 95% (both not occurring

simultaneously).

Electrical equipment located inside ECR shall be designed for maximum

Ambient temperature of 45C and maximum RH of 95 % (both not

occurring simultaneously.





Electronic equipment such as digital invertors / VFDs etc. have been

envisaged to be installed inside air conditioned enclosures within ECR

with an ambient temperature of maximum 35 C.

Electronic equipment such as PLC’s , PCs etc. have been envisaged to

be installed inside air conditioned enclosures within ECR with an

ambient temperature of 21-24C. Pulpits has also been envisaged to be

air conditioned with temp at 21-24C.

09.07 Power Distribution Facilities

.01 HT Voltage 11000V AC +6 –9% %, 3 phase

.02 LT Voltage 415 V AC +/- 10 %, 3 phase

.03 Rated frequency 50 Hz +3 -5%

.04 Control voltage 240V AC through 415 V / 240 V

transformer

.05 PLC Inputs/outputs 24 V DC, 4-20 mA

.06 Solenoids 24V DC

09.08 Shop Electrics & illumination system:-

The following shop electric facilities have been considered covering broadly

the areas as given below: -





i. Illumination system.

ii. LT sub distribution boards

iii. Welding sockets.

iv. Crane power feeding system

v. Motor control centers / Power distribution Board / Main lighting

Distribution board with necessary Local control stations / control desk

for the mill /lines aux. viz. Air conditioning & ventilation system, water

supply system, Compressed air system, Material handling equipment

etc. The ventilation and air-conditioning system for electrical premises

shall be generally located in the respective basement floor.

vi. Complete LT/HT power cables, control cables, screened cables/ special

cables.

vii. Cable structures, racks, trays, GI pipes etc. including various erection

accessories & materials for the complete laying & erection of electrical

equipment.

viii. Equipment earthing system including separate electronic earthing for

PLC/ Electronic equipment.

ix. Lightning protection of building/ structures

x. Fire detection system.

xi. Automatic detection for ECRs , pulpits , oil cellars & transformer

rooms , cable tunnels and sub-station.





xii. Voice communication equipment for all facilities like ECRs, pulpits, oil

cellars, sub-station, pump house, Shop floor area, shift rooms etc.

The lighting system inside and outside plant units has been considered taking

into consideration the architectural arrangement, building dimensions

including mounting height, environmental considerations, ease of

maintenance and reliability of the lighting distribution network. The plant

shall be provided with necessary indoor and outdoor lighting system.

Plant Grid earthing system has been considered for the safety of electrical

equipment and personnel. Parts of all electrical equipment and machinery

not intended to be alive shall have two separate and distinct earth

connections each to conform to the stipulation of the Indian Electricity Rules

and apparatus rated 240V and below may have single earth connections.

Electronic earthing has been considered if separately required for

automation equipment such as PLCs/ HMI etc. Lightning Protection System

for each building /bay has been considered against lightning, for the safety of

building, equipment and personnel.





All LT power and control cables have been considered which shall be of PVC

insulated and sheathed, armoured / unarmoured of 1100V grade. Power

cables shall be of size 6mm & above will be of aluminium. Control cables

shall be of copper conductors. Special cables have also been considered

wherever required.

09.09 DG Set

A DG set of adequate capacity has been envisaged to cater to emergency

power requirements of the Complex.





10 PLANT SERVICES & UTILITIES

10.01 Water Supply Facilities

10.01.01 General

Water for the proposed COMPLEX FOR MANUFACTURING

TRANSMISSION LINE TOWERS will mostly be required for direct and

indirect cooling of plants/ machines/ equipment with a part to be

consumed for drinking and sanitation purpose and other direct process

and general purpose needs. Individual recirculation system has been

envisaged for water systems of various plant units to effect extensive

recycling and reuse of return water from plant processes after necessary

treatment and conditioning.

10.01.02 Requirement of Water

The total make-up water requirements for the proposed integrated

Complex for manufacturing Transmission Line Towers is estimated as 5

m3/h (Approx.).

10.01.03 Breakup of Circulation Water Requirement

The unit wise break-up of make up water and circulating water

requirements of various plant units of the proposed Plant are indicated in

Table-11.01.





Table – 10.01

Estimated Water Requirement (m3/hr)

Sl.

No. Consumer /unitsCirculating water

M3/hr

A TLT FABRICATION UNIT (2 Nos.)

Industrial Water 20

B HOT DIP GALVANIZING UNIT (2 Nos.)

Industrial Water 30

C COMPRESSOR 50

Total Water Circulation (m3/hr) 100

Drinking water requirement for plant = 50 m3 / day

Estimated Make-up water requirement will be of the order of 5 m3/hr.

10.01.04 Source of Fresh Make-Up Water

The requirement of fresh make-up water for the proposed Plant will be

met by a dedicated borewell, subsequently water treatment plant shall be

planned to achieve the desired quality before pumping to the proposed

units.





10.01.05 Proposed Facilities

To cater to the water requirement of the proposed Plant, the following

water system facilities have been envisaged.

i) Make-up water system

Industrial quality treated water, drawn from the make up water

treatment plant will be provided to all the re-circulation systems as well

as other direct consumers of proposed Plant.

ii) Drinking Water System

Treated water will be further processed to have drinking quality water.

10.01.06 Water Re-circulation Systems

The following water re-circulation systems have been envisaged.

a) Clean water re-circulation system for TLT Fabrication unit, Hot Dip

Galvanizing Unit, compressor.

b) Contaminated water system for TLT Fabrication unit, Hot Dip

Galvanizing Unit.





10.01.07 Water pollution control and conservation

Extensive recycling has been adopted in the design of plant water

systems. Quality of circulating water will be maintained through dosing of

conditioning chemicals for controlling corrosion, scale deposit and

microbiological growth.

Waste water from treatment plant will be neutralized before discharge

from the plant. The sludge arising out of different circuits will be disposed

of at suitable location.





10.02 Air Conditioning & Ventilation System

General

Ventilation and air-conditioning systems are proposed to provide proper

working conditions necessary for maintaining environment compatible

with human hygienic requirements and to maintain conditions necessary

for proper storage of materials and working of plant and equipment. The

ventilation and air-conditioning systems generally include one or more

items of equipment and accessories such as fans, air filters, air washers,

air-conditioning units, duct work, pumps, cooling tower, air supply grills,

dampers, insulation, instrumentation and controls, electrics, etc.

Ventilation and air-conditioning systems will be designed considering the

climatic conditions prevailing in the region and the plants will generally be

installed in separate plant rooms independent of the served premises. The

plant rooms will be provided integral with and adjacent to the served

premises at proper locations on considerations of convenience of routing

of ducts/pipes, availability of fresh uncontaminated air and creating least

disturbance to the adjacent premises in terms of vibration and noise.





Ventilation and air-conditioning systems will be provided with adequate

measures for safety and fire fighting for fire hazardous areas and will be of

flame proof/explosion proof construction.

10.02.01 Ventilation facilities

Depending upon the specific requirement, the shops/buildings will be

provided with either exhaust ventilation or dry plenum ventilation or

washed air ventilation system. The system design will take into account

the requirements of air change as well as excess heat removal. Filters will

be provided with plenum systems. By plenum ventilation, the served

premises will be pressurized to 2-3 mm WC to avoid ingress of dusty air.

The details and types of system proposed will be as shown in the Table

below.

Sl.

No.

Location / Shop Facilities

a) Electrical Control Rooms, Main

substation building

Air washer comprising air

washer, centrifugal fan,

pumps (100% standby),

filter, piping & ducting





network, etc.

b) Transformer pens for ECR, Water

Pump House, Compressed Air

Station, & various laboratory

premises like Mechanical Testing &

Sample preparation room

Tube axial based Dry

Ventilation System

10.02.02 Air conditioning facilities

Premises requiring stringent environmental conditions of temperature and

humidity will be air conditioned. The selection of the type of air conditioning

system depends on the specific requirement of the application in terms of

cooling capacity, temperature, humidity and freedom from dust as well as

the size and location of the premises. The air conditioning system shall

maintain a temperature of 23 + 2 0 C and relative humidity 55 + 5 %. The

types of air conditioning system proposed are as indicated below:

Sl. No. Location/Shop Facilities

a) MCC cum automation room Water cooled Packaged

air conditioners with

100% standby





10.03 Fire Fighting Facilities

10.03.01 General

Many working premises in plant have hazardous and fire prone

environment. To protect the working personnel, equipment and

machineries, adequate safety and fire fighting measures have been

planned for the proposed plant.

10.03.02 Fire Protection Facilities

In order to combat any occurrence of fire in plant premises the following

fire protection facilities have been envisaged for the various units of the

plant.

10.03.03 Portable fire extinguishers

All plant units, office buildings, stores, laboratories, etc will be provided

with adequate number of portable fire extinguishers to be used as first

b) Control Pulpits, Control room and

office area (main substation

building), OES room & In-charge

room in laboratory premises

Ductable Split air

conditioner / Split air

conditioner





aid fire appliances. The distribution and selection of extinguishers will be

done in accordance with the requirement of IS: 2190-92.

10.03.04 Hydrant system

A water based hydrant system both yard hydrant and internal hydrant

network system has been envisaged for the plant. Internal hydrants will

be provided at suitable locations and at different levels inside the major

plant units. Yard hydrants will be provided normally along the road and in

the close vicinity of the units to meet the additional requirement of water

for extinguishing fire.

10.03.05 Automatic fire detection system

Unattended and vulnerable electrical premises like electrical control

rooms, cable tunnels, MCC, transformer rooms, switch gear rooms, etc.

will be provided with automatic fire detection and alarm systems.

10.03.06 Automatic extinguishing system

Installations like transformers of MSDS will be provided with fire

detection and emulsifier (high velocity water spray) system.





10.04 Compressed Air System

A centralized compressed air station has been envisaged in order to meet

the requirement of industrial and instrument quality compressed air for

the proposed plant.

10.04.01 Equipment Description

A compressed air station consisting of compressors, air dryer units,

receivers and associated piping have been envisaged to fulfill the

requirement of industrial quality (Total air 12 Nm³/min) and instrument

quality (Total air 3 Nm³/min) compressed air at a discharge pressure of 4 -

6 kg/cm2(g) for the entire plant.

The details of Compressors and Air Dryer Unit are as follows:

a. Compressors

Air Volume Flow 15 Nm3/min each

Discharge Air Pressure 6 kg/cm2 (g)

No. of Compressor 2 (1w+1s)

Type of Compressor Oil free two stage, water cooled package





type screw compressor.

Service requirement Continuous

Installation Indoor

b. Air Dryer Unit

The Air Dryer units will be of Heatless type. The selection of air dryer

units will be such that performance of the same will not be affected

at different loads of the system. Dryer will be installed adjacent to

the compressor. The system will be designed such that under no

circumstances the dry air supply will be stopped. Air dryer unit will

supply instrument quality dry air to various units of the complex.

The dryer will be installed along with all necessary auxiliaries. The

operation and control of the dryers will be fully automatic. The

details of air dryer unit will be as follows:

Type Heatless type Air Dryer

Quantity 2 (1w+1s)

Air volume flow (each) 4 Nm3/min.

Inlet air pressure 6 Kg/cm2 (g)





Service duty Continuous

b. Air Receiver

Industrial Air Receiver - 1no.

Capacity - 3 m³ at 6 Kg/cm²(g)

Instrument Air Receiver - 1 no.

Capacity - 1 m³ at 6 Kg/cm² (g)

10.04.02 Location of Compressed Air Station

The instrument air compressors and the service air compressors will be

located in a common air compressor cum air drying building of RCC

construction. The building will be located near main plant. The

distribution of compressed air, both instrument and service will be done

through separate pipeline network. Service air pipeline system will be

provided with moisture drain facilities.

10.04.03 Electrics

Necessary electrics viz. switchgear, MCC, cabling, controls, illumination,

earthing etc. have been envisaged.





10.04.04 Controls & Instrumentation

Microprocessor based control & Instrumentation system will be provided

for smooth and efficient control and monitoring of the compressors.

Independent instrumentation panels along with mounted instruments will

be provided for each compressor for measurement and control of process

parameters, alarm and annunciation for abnormal condition and safety

interlock.





10.05 Inter Plant & In-Shop Piping Network

10.05.01 General

Inter-plant piping network will be provided with supporting structures for

supply of compressed air, instrument air and fuel oil to meet the process

requirement from compressed air station and fuel oil installation.

The interplant piping network shall consist of a common trestle / stockade

/ bridge carrying pipes from sources to consumers. In shop piping

network, consist of pipes carrying various fluids, will be supported from

building column / structures.

Approach ladders, hand railings etc will be provided for valve operation

on overhead interplant & in shop piping network.

Compressed air service pipes will be of IS-1239 ERW, CI lubricated taper

plug valves, CI ball valves along with moisture traps and Y-strainers.

Furnace Oil pipes and fittings shall be ERW as per IS: 1239(Part –I) and IS:

1239(part-II) respectively.





10.05.02 Design Basis

Plant grade & instrument grade compressed air shall be made available at

outlet of compressor room with the following parameters:

Plant grade compressed air

Pressure - 4 to 6 bar (g)

Temperature - Ambient

Usage - Intermittent

Instrument quality air

Pressure - 4 to 6 bar (g)

Temperature - Ambient

Usage - Continuous





10.06 Fuel Gas / Oil Handling Facilities

10.06.01 General

CO Gas has been proposed to be utilized as fuel for Heating Furnaces in

the Fabrication Unit and for the Galvanizing Unit.


transporting the required quantity along with Nitrogen Line for purging

will be laid from the tapping point to the site.

In addition to above, provision for use of Furnace oil in case of shortage /

disruption of CO Gas supply has also been envisaged.

10.06.02 CO Gas requirement

The requirement of CO Gas for the, Heating Furnaces in the Fabrication

Unit and for the Galvanizing Unit has been estimated based on specific

consumption per ton. Hourly consumption by will be around 1100

Nm3/hr.





10.06.03 Proposed Facilities

a. CO Gas Pipeline


transporting the required quantity along with Nitrogen Line for

purging will be laid from the tapping point (approx. 3 km away) to

the site. The pipes will be laid on structural trestles as per the

relevant standards.

b. FURNACE OIL Storage Tanks

For storage of furnace oil, it has been envisaged to provide 2 (two)

fabricated cylindrical vertical mild steel tanks each of capacity 100

kL. The tanks will be designed as per IS: 803-1976. Each tank will

be provided with all standard accessories and fittings.

The tanks will be fitted with followings:

- Inlet, outlet, overflow, drain and vent connections.

- Manholes (roof and shell).

- Filling nozzle.

- Float type level indicator.

- Roof railing.





- Ladder with railing.

- Lightning arrestor.

- Inside cat ladder.

- Outside hand railings on stair cases.

- Pockets for instruments.

- Drain valves.

- Tank earthing.

Corrosion allowances will be 1.5 mm.

c. Fuel oil decanting / unloading facilities

Oil will be received at site by road tankers. Necessary unloading

facilities will be provided for unloading of oil from road tankers

into the storage tanks. 2 (Two) nos. positive displacement pumps

(1W+1S), of capacity 10 m3/h each will be provided along with

strainers for unloading.

d. Fuel oil supply to the consuming units

Two (2) nos. positive displacement delivery pumps (1W + 1S) will

be installed for meeting the requirement of furnace oil delivery to

the consuming units through ring main system. Adequate

provision will be kept in the design of piping system which will be





laid overhead and in-shop piping will be supported on shop

columns/ building structure.

Duplex filters of 500 micron for unloading pumps & 250 micron for

delivery pumps at suction side of the pumps will be installed.

All the above pumps will be complete with:

- Non return valve at discharge end.

- Safety devices.

- Lubricating system.

- Base plate.

e. Instrumentation & Control

All standard instrumentation and control facilities as required for

safe, smooth and trouble free operation of the bulk fuel oil system

will be installed.

f. Fire fighting facilities

Fire fighting facilities / fire safety hazard measures suiting to bulk

fuel oil storage and associated handling facilities will be provided

as per applicable codes and standards.





11 QUALITY CONROL FACILITIES

11. 01 Objectives and scope

The proposed steel unit to produce transmission line towers (TLT),

being set up by joint venture plan of Rashtriya Ispat Nigam Ltd. (RINL),

Visakhapatnam and Power Grid Corporation of India Ltd. (POWERGRID)

will produce high quality galvanized transmission line towers according

to the stipulations of various national and international standards. In

order to achieve this objective, efficient and stringent quality assurance

measures are to be enforced at every stage of production. Quality

assurance can be implemented effectively in the form of analyses and test

results which can be provided only by well-equipped laboratories

entrusted with day-to-day quality control at all stages of processing and

quality evaluation of finished products.

The laboratory will, therefore, have the following responsibilities.

- Collection and preparation of samples

- Analysis and testing of intermediate and finished products

- Feedback to the main production units to enable them to ensure

corrective measures in a short time to eliminate process irregularities

and rejection of costly intermediate / finished products





- Development of new products

- Investigation of customer complaints for addressing them effectively

11.02 Planning of laboratories

Keeping the above in view, one well-equipped quality assurance

laboratory, catering to the quality assurance requirements for the

proposed TLT unit have been envisaged. This laboratory will be

provided with the following sections:

- One mechanical testing and product analysis section, catering to the

quality requirements of the input black angles.

- Section for in-process inspection during fabrication

- One galvanizing unit section catering to the requirements of the

galvanized TLT products

All these sections will be located in a building at a suitable location.

11.03 Sample transportation

Samples for mechanical testing as well as samples of galvanized products

will be transported manually to the proposed quality assurance

laboratory for carrying out various tests.





11.04 Service facilities

The laboratory will be provided with service facilities like power, water,

compressed air, exhaust ventilation, air conditioning, etc. as required.

Persons with adequate knowledge will be deployed to man those

laboratories.

11.05 Functions, activities and functional sections of the quality assurance

laboratory

11.05.01 Functions

To carry out sample preparation and mechanical testing (e.g.

tensile, bend, impact, hardness, etc. ) of the rolled products

To carry out instrumental analysis of rolled products

To carry out testing of the galvanized products

Functional sections

Mechanical testing section

Mechanical testing sample preparation section

Product analysis section

Galvanized product testing section





The mechanical testing section will be provided with universal testing

machine, impact testing machine, hardness tester, etc.

The mechanical testing sample preparation section will be provided with

semi-automatic band saw, pedestal grinder, lathe machine, profile

projector, etc.

The product analysis section will be provided with optical emission

spectrometer along with the sample preparation equipment.

The galvanized product testing section will be provided with coating

thickness tester, atomic absorption spectrophotometer, coating weight

determinator, etc.

11.06 Laboratory building

A RCC building has been envisaged for quality assurance laboratory.

This laboratory building shall be provided with necessary service facilities.





12 CIVIL & STRUCTURAL WORKS

12.01 Civil Engineering Works

12.01.01 Scope of Work

The Civil works consists of site preparation, providing foundations of Main

building for Fabrication Unit, Galvanizing Unit together with equipment

foundations required and associated works for all plants, auxiliary

buildings, electrical control rooms, transformer rooms, laboratory,

compressed air station, pump house, MSDS, water supply facilities etc

suiting to the requirements of TLT Manufacturing Complex and other

service facilities like drainage, sewerage, roads, boundary fencing, site

leveling etc.

12.01.02 Topographical Feature of Site

The proposed TLT Manufacturing Complex is to be located in an open

space within the acquired place of RINL.

12.01.03 Soil Condition

The detailed investigation on soil at the proposed site is yet to be

conducted. Hence pile foundations are not envisaged and open

foundations are assumed.





12.01.04 Design Features

The Civil engineering design will be based on norm laid down in relevant

specifications of the Bureau of Indian standards and National building

code. All RCC work will be generally of minimum M25 grade concrete and

reinforcement shall be of high yield strength deformed TMT bars. All

underground pits, basements etc will be designed for water tightness.

The building structures will be designed for wind and seismic loads along

with technological loading as per relevant IS codes and practices. All

buildings will be of R.C.C framed construction with filler brick wall.

Concrete grade

Following concrete grades will be adopted for the project.

Design mix concrete will be used for all RCC works.

M-25 RCC works for all foundations/substructures, superstructure

elements of all plant buildings

M-20 For drains, pavement. flooring , pits, etc.

For PCC works

M-7.5 Lean concrete below foundations, etc.

M-10 and For PCC works in drain, screed concrete, grade floor, etc.





M-15

Building material

Cement - In general cement has been considered to be Ordinary Portland

Cement or Blast furnace slag cement. In special cases rapid hardening

portland cement, slag cement sulphate resistant cement, etc. may be used

as per requirement.

Reinforcement steel for RCC - For all RCC work, reinforcement bars has

generally been considered to be of high strength deformed bars(TMT bars

of Fe 500) conforming to IS: 1786-1985.

Brick masonry work

Brick has been considered to be locally available best quality conforming to

the requirements of IS: 1077 for common burnt clay building bricks. (Grade

M-5).

12.01.05 Constructional Features

Reinforced cement concrete work will be generally of cast-in situ except

in specified areas e.g., precast cover slab, septic tanks, inspection

chambers, etc. Ordinary Portland cement/Blast furnace slag cement will





generally be used. All construction works shall conform to prevailing

standards and practices.

12.01.06 Floor and Hard Standing

Flooring will be provided to suit the functional requirement. Ground floor

of main shop buildings will be of RCC laid over a compacted crushed stone

/ stone boulder. For heavy duty flooring, hard topping will be provided.

12.01.07 Finishing

Walls will be plastered with cement mortar 1:6. Plaster of pairs will be

used over cement plaster where superior finishing will be envisaged.

Generally interiors of buildings will be finished with 3 coats of white wash

/ distemper and the exterior will be finished with 2 coats of approved

snowcem over a base coat. Superior wall & ceiling finished like acrylic

emulsion paint will be used as necessary.

12.01.08 Roads

Roads will be of 7m and 4m wide with berms on either side. RCC Side

drains on either side of 7m and 4m wide road will be provided. Roads will

be of bituminous (WMM type) confirming to MORT&H specifications.





12.01.09 Storm Water Drainage

Masonry drains of adequate size will be provided around the buildings

which will be suitably connected to the area drainage system. Concrete

drains will also be provided around structural buildings & on either side of

roads and with provision of pipe culverts at the road crossing. Storm

water will be suitably disposed.

Septic tank and soak pit concept at unit locations have been envisaged for

treatment of faecal sewage complex.

12.01.10 Construction Material and Availability

Construction materials will be procured from the nearest available source.

12.01.11 Standard and codes of practices

Mainly following IS codes will be referred in general:

IS :456-2000 Code of practice for plain and reinforced cement concrete.

IS : 875-1987 Code of practice for design loads for buildings and

structures.

IS : 2974 Code of practice for design and construction of machine

foundations

IS : 3370 Code of practice for concrete structures for the storage of





liquid

IS: 1893-2002 Criteria for earthquake resistant design of structures.

General provisions and buildings.

Apart from the above, wherever necessary other relevant Indian Standard

Code of practices/IRC standards has been considered as per BIS.

12.02 Structural Works

12.02.01 General

Steel structural work will include supply, fabrication, erection & painting

of all structures of the following units:

a) TLT Fabrication Unit

b) TLT Galvanizing Unit

c) All related Piping support structures

d) Other Miscellaneous structures

The structures will include building structures, pipe trestles etc. for the

TLT Manufacturing Complex.

12.02.02 Design Parameters

Structures made of structural steel will be designed as per IS: 800-1984.





Loading will be taken as per IS: 875 – 1987 (Part 1, 2, 3 and 5) in addition

to the technological loads indicated by the equipment

manufacturer/supplier.

Seismic loads will be taken from IS: 1893 – 1984.

12.02.03 Material of Construction

The material for the structures will be designed as follows:

a) All steel rolled sections and plates will conform to IS:2062 (Grade

A).

b) Chequered plate will conform to IS: 3502 – 1994.

c) Steel tubes for handrail will conform to IS: 1161 – 1998.

12.02.04 Method of Construction

Steel structures to be fabricated will generally be of welded construction.

Covered electrodes will conform to IS: 814 – 1991. Elements will be

fabricated in largest possible dimensions optimal with the transport

requirement so as to minimize site work. Site connection will be either by

permanent bolts or by erection bolts followed by site welding.





12.02.05 Fabrication

Fabrication of structures will conform to IS: 800 – 1984 and other relevant

standards therein.

12.02.06 Erection

Erection will be carried out as per applicable standards, drawings,

specifications and regulations. The erection tolerance will be within the

standard specified limits.

12.02.07 Painting of all Structural Steel Work

The Grade of surface preparation will be as per relevant Indian Standard.

Structures will be applied with two coats of primer and two coats of finish

paint. Primer shall confirm to Red Oxide Zinc Chromate (IS-2074). The

finish paint shall be synthetic Enamel Paints confirming to IS-2932. The

DFT per coat will be 25 to 30 microns.





13 MANPOWER REQUIREMENT

13.01 Manpower

Meticulous distribution of manpower is essential for uninterrupted

operation and proper maintenance of plant facilities. For the proposed

plant, the manpower requirement has been estimated based on the

following considerations:

- Production shops and their capacities.

- Type of equipment proposed for the main production shops and

corresponding auxiliary / services facilities.

- Degree of automation and mechanization envisaged in different

units.

- Extent of manning required for each equipment.

- Number of operating shifts.

- Supporting personnel for weekly off and leave reserves.

The manpower requirement, thus estimated, is given in table – 13.01

Table – 13.01

Estimated Manpower Requirement

Sl. No. Unit Number

1. TLT Fabrication Unit 54

2. TLT Galvanizing Unit 36

3. General administration and

miscellaneous10

Total 100





The break-up of total manpower requirement in different categories is

given in Table – 13.02.

Table – 13.02

Category wise Requirement of Manpower

Sl. No. Category Number

1. Executives 25

2. Non – Executives 75

Total: 100

The above manpower may be suitably redeployed from among the

employees of the JV partners.

However, the activities related to handling, loading / unloading to

respective machines as well as for cleaning, maintenance, etc. shall be

suitably outsourced as per the actual requirement. It is envisaged that

required labour for these activities shall be outsourced on tonnage basis

depending upon the quantum of plant work load.

13.02 Training

Keeping in view the magnitude of operation of the proposed plant,

advance training of personnel in key area is envisaged so that adequate

number of trained personnel is made available at the time of

commissioning of the plant and during subsequent production stages.

The type of facilities envisaged for the proposed plant is already under

operation for quite a long time in the country’s existing TLT





manufacturing units. Training of plant personnel may thus be planned in

these plants.

A good number of plant personnel will also get in-house and on-job

training during trial runs and commissioning of the proposed TLT

Manufacturing Complex.





14 PROJECT IMPLEMENTATION

14.01 General

The project envisages setting up of integrated complex to manufacture

transmission line tower by M/s RINL & POWERGRID at Visakhapatnam.

The major Facilities envisaged are indicated below for reference:

TLT Fabrication Unit

Hot Dip Galvanizing Unit

In addition to the above technological units, suitable supporting facilities

have been envisaged like raw material handling system, compressed air

facilities, power distribution system, shop electrics, illumination system,

water supply system, air conditioning & ventilation system, central stores

and repair shop, laboratory, telecommunication facilities, effluent

treatment facilities, fire detection and alarm system etc.

The project has been planned to be completed in 16 months from “Zero

date” which is reckoned as “Start of ordering of Main Technological

Units”.





With a target of early realization & stabilization of manufacturing

facilities, it has been foreseen to stagger the implementation of proposed

Fabrication & Galvanizing Units. In this staggering process, one unit each

for Fabrication & Galvanizing may be commissioned first with the Input

Angles from RINL / Market as per the requirement and availability. The

second units for Fabrication & Galvanizing will be subsequently

commissioned.

This staggering of commissioning of different units will facilitate the JV in

two ways:

Stabilization of Fabrication & Galvanizing process / machines.

Unit will start producing required TLT parts to meet the huge

market demands. This will establish the standing of this complex in

the market before the Integrated Commissioning of Complex.

However, the execution of the proposed project would call for meticulous

planning, monitoring and control during engineering, procurement and

construction stage. Salient aspects relating to project implementation

strategy are covered in this chapter.





14.02 Phase wise Volume of work

Preliminary estimate of the volume of work involved for the project is

furnished below:

Volume of Work

The above estimates, however, are tentative at this stage, and are

furnished to facilitate advanced planning. These will be updated

progressively during the detail engineering and work execution phase of

the project.

14.03 Implementation Schedule

The overall implementation schedule for the project, taking into account

the facilities proposed, is given in Drg No. MEC/123J/11/PY/01(R-3).

According to this the overall project will be commissioned in 16 months

Sl.

No.

Item Unit Quantity

1. Concreting (RCC) m3 20,000

2. Steel structures tons 3,200

3. Plant & equipment tons 2,000





time from the zero-date of the project to attain the ultimate capacity of

the plant.

To facilitate the commissioning of the overall plant in stipulated time,

readiness for cold test of the major units as per proposed schedule has

been indicated in the following table.

Unit

Completion Milestone

(months from “zero-

date” of the project)

Ready for Cold Test - Auxiliaries for

Fabrication & Galvanizing Unit

14-15

Ready for Cold Test - Tower Fabrication

Unit

15

Ready for Cold Test - Hot Dip Galvanizing

Unit

15

Testing, Trial-Run & Integrated

Commissioning of Fabrication &

Galvanizing Unit

15-16

14.04 Implementation Plan

With the Project Approval by competent Authority, the preparation of

tender documents and invitation of bids, scrutiny and finalization of

contracts of technological packages shall be completed within 4 months

prior to the start of zero-date.





With the “zero-date” set as above, it is planned to complete the basic

engineering and approval within 5 month of the project. Preparation of

specifications / tender documents for auxiliaries units and services has

been planned to be undertaken from 2nd to 6th month, so that their order

placement can be completed by 9th month. The detailed design and

engineering has been planned to start from 3rd month onward so that

sufficient drawings can be made available to start the civil work.

Civil work for the plant construction shall start from 4th month onwards.

The structural fabrication and supply work is planned to commence from

4th month, so that the structural erection can be started from 7th month

onward. It is envisaged that the supply of plant and equipment at site

shall start from 9th month and shall be completed by 14th month.

Accordingly the equipment erection shall commence from 11th month and

is expected to be finished by 15th month.

The testing, trial-run and integrated commissioning of fabrication and

galvanizing unit including its services facilities are planned to be taken up

progressively from 15th month onwards as shown in the schedule.





14.05 Advance Actions

In addition to the above, it will be imperative to complete many of the

activities prior to “Zero-date” of the project. These include:

Preparation & issue of tender document for major technological

units

Actions for placement of orders for major technological units

Financial tie-ups, if any.

Finalization of terms with overseas agencies, if any

Soil investigation

Actions for enabling works like, construction of water line, power

line, sewerage, labor camps, etc.

It is envisaged that the project will be implemented on turnkey basis for

the major production units including auxiliaries and services facilities. The

proposed implementation schedule and planning has been based on this

approach.





15. POLLUTION CONTROL & WASTE MANAGEMENT

15.01 General

The pollution control system for the proposed TLT Manufacturing Complex can

broadly be divided into the following three categories:

- Air pollution control

- Noise pollution control

- Water pollution control

15.02 Air pollution control

Possible source of air pollution in the proposed complex are the alkaline and

acidic fume from galvanizing unit. These fumes will be extracted by the fume

exhaust system and released into atmosphere at adequate height matching

statutory requirements.

Emission of air pollutants from the other units will be practically negligible. As

such, no other air pollution control measures have been envisaged.

15.03 Noise pollution control

Excessive noise produced by the various equipment operating in the plant will be

suppressed by providing necessary accoustics insulation of the equipment,

silencers in the atmospheric relief and usage of suitable sound





insulators/dampers for the structures and buildings. The noise level in the

vicinity of the plant and equipment will be generally kept within the permissible

limits.

The equipment and services will be designed such that in working premises the

continuous exposure noise level of 90 db (A) is not exceeded. In case the sound

level in a particular zone near equipment is above the permissible limits, the

exposure duration for the affected workers will be suitably proportional to the

increased percentage of noise levels.

15.04 Water pollution control

The water supply and effluent disposal system proposed for the plant will be

mostly closed recirculation systems which will help in reducing the fresh water

requirement and also minimize water pollution. Where water is used only for

cooling purposes and there is no change in its characteristics except some rise in

its temperature, water will be cooled in cooling tower before it is reused.

An effluent treatment plant has been envisaged for treating effluents arising

from galvanizing unit. As the flow of effluents is intermittent, the effluent

treatment plant will work batch—wise. The treatment system for treating

effluents from galvanizing unit will have a holding tank of adequate capacity. The





waste water and rinse water will be collected in a collection/mixing tank. The

mixed effluent will be neutralized by adding milk of lime and compressed air

supply for oxidation of ferrous chloride. Then the effluent will be transferred to a

rectangular settling tank for clarification. The clarified water will be further

treated for reuse in the system. The settled sludge from settling tank will be

pumped to the sludge drying bed for sun drying and disposal.

Adequate measures have been envisaged so that all the treated effluents let out

of the complex will conform to permissible limits set by the statutory

authorities/pollution control boards.





16 CAPITAL COST

16.01 General

The capital cost of the proposed TLT manufacturing complex proposed at VIZAG

including galvanizing and other related auxiliaries and services as envisaged has

been estimated and summarized as given below:

Sl. No. Description Cost (Crore Rs.)

1. Plant Proper 312.8

2 Interest during construction 12.3

3 Capitalized Land use charges 6.2

4 TOTAL 331.3

Including foreign exchange

component

106.0

Details of capital cost estimate have been furnished in the following table:

Table-16.01 Details of total estimated capital cost

16.02 Basis of capital cost estimate

The costs have been worked out on the basis of prices prevailing during 2ND

Quarter 2014 and do not include any provision for future escalation in costs

during implementation period.





The various assumptions made while estimating the capital cost are elaborated

below: -

Land

The proposed plant is to be set up over an area of 50 Acres. The land shall be

permitted to use against user charges as described hereunder:

8% per annum of Rs 1.025 Cr per Acre i.e. Rs 4.10 Cr/Annum

Accordingly, cumulative user charges accrued during construction period have

been capitalized along with one time down payments.

The cost towards leveling of this land besides the cost towards laying of internal

roads, boundary wall, gates, security posts etc. have also been covered under

civil costs.

Buildings

The estimated cost of buildings has been worked out on the basis of preliminary

layout and design of facilities detailed in the previous chapters and rates for civil

works as applicable in the region. The facilities included in the estimates are

factory buildings including main and auxiliary services, non-factory buildings and

miscellaneous civil works etc.

Plant and machinery

The majority of cost estimate is based on budgetary quotations wherever

available. In other cases, the cost is based on in-house data available for similar

equipment in other projects. The cost of plant and machinery includes, besides

the basic cost, cost towards spares and transportation to site. Provision for





ocean freight and insurance has been made @ 5.0% of FOB value of imported

supplies. Import duty has been provided @20.6036 % (5 % (CD, 10.0%CVD,

3%Ed.cess, 4%SAD) of CIF value of imported supplies under project import

provisions. For indigenous plant and equipment, excise duty has been

considered at an average rate of 10.3% and central sales tax at the rate of 2%

on such equipment and spares. Provision has also been made in the estimate

for erection and foundation of plant and machinery.

Engineering, Supervision, Project Management and Training etc.

A sum of Rs. 11.0 Crores (Rounded off) has been provided for payment towards

detailed engineering, consultancy charges, project management, supervision and

training etc.

Financing

The project is considered to be financed in the debt : equity ratio of 3:1. The

debt portion is to come through long term loan bearing an interest rate of 12%

per annum.

Construction schedule and Interest during construction

Total project is scheduled to be completed and commissioned in a period of 18

months from the zero date. The interest during construction has been

computed and capitalized based on above financing pattern & construction

schedule.

Contingencies

Provision for contingencies @ 5% on the capital costs has been made to cover

any unforeseen aspect of the estimate.





Working capital

The working capital requirements have been considered as equivalent to one

months of cost of production. It is also assumed that entire working capital shall

be financed through short term bank borrowings bearing interest rate of 12%

p.a.

Exclusion

The cost estimate does not provide for followings: -

i) Any future escalation in prices

ii) Any currency fluctuations in future

iii) Any changes in rate of duties & taxes

iv) Infrastructure facilities outside the battery limits of the plant proper

However, effects of these exclusions have been covered in sensitivity analysis

under variation in capital cost.

Exchange Rates

The imported supplies have been considered at following exchange rates:

Rs/Euro= 82.0





Table-16.01





17 PRODUCTION COSTS

17.01 General

The proposed TLT Complex has been envisaged to produce total of 120000 Tons

of galvanized finished products annually. It is assumed that the plant would

operate at 80 % capacity during first year, 90% during second year and 100 %

during third year and onwards.

The average production cost excluding depreciation and interest during third

year of operation when the plant achieves rated capacity utilization, works out

to Rs 52,263/ton (rounded). The details of annual works cost are given in Table-

17.01.

17.02 Materials and consumables

The plant has been envisaged to source its total black angle requirements from

RINL / Open market / through conversion agents depending upon the supply

constraints, price economics and logistic considerations. In view of such wide

ranged sourcing spectrum it has been decided to consider average delivered

price of black angles to the plant at Rs 41000/t for the purpose of this report.

The costs (Excl. Excise) of major input raw materials (Average as prevailing in the

market) as delivered at site have been adopted as follows: -

Sl. No. Item Rate(Rs/ton)

1 Steel Black Angles 41,000

2 Plates 39,000





3 Zinc 164,000

Rates for raw materials and other inputs are based on information available from

Market feedback/MECON’s in house data.

Cost of consumables includes various consumables like lubricating oil and grease,

etc.

17.03 Utilities

The costs of various utilities such as water, electricity and fuel have been

considered as follows:

Sl.

No.

Item Unit Rate(Rs/unit)

1.

2.

3.

Raw Water

Electricity

Fuel (CO Gas)

M3

KWh

G-Cal

6.00

7.00

1900.0

17.04 Labour and supervision

Provision for labour and supervision is based on the operational and

maintenance manpower requirement. The details of manpower and wages &

salaries thereof are given in Table – 17.02.





Table-17.02

Sl.no. Category No. of

employees

Annual averageremuneration/

employee

Total annualcost (Lakh Rs)

1 Executives 25 18 Lakh 4502 Non -

Executives75 8 Lakh 600

3 Out sourcedservices formaterialhandling andother non-criticalactivities

LS @730 Rs/ton offinishedProduct

876

Total 100 +Outsourced 1926

17.05 Repair & maintenance and Overheads

Cost towards normal repair & maintenance of plant and buildings and rent, rates,

taxes, insurance, etc have been covered under overheads. The provision includes

for administration and selling expenses also. The repair & maintenance expenses

are Rs 416 Lakh/Annum and remaining Rs 235 Lakhs/annum are towards

overheads provision.

17.06 Depreciation

Depreciation has been worked out based on straight-line method and written-

down value (WDV) method as per existing income tax rules. The details are given

in Table 18.06 in next chapter.





17.07 Interest

The following interest rate has been considered for various types of

financing arrangements: -

Long term loan : 12% p.a.

Bank borrowings for working capital : 12% p.a.

17.08 Escalations

The above production costs are based on the prices/rates prevailing during 2nd

Qr. 2014 and no future escalations have been considered while assessing these

costs.





Table-17.01





18 FINANCIAL APPRISAL

18.01 General

Financial analysis has been carried out based on capital investment and

operating cost elaborated in preceding chapters and Average net sales

realization as discussed in para 18.07. The salient techno-economic indices of the

project have been summarized in Table -18.01.

Table-18.01

SALIENT TECHNO-ECONOMIC INDICES

Sl.No. Item description Unit Indices

1 Cumulative retained profit over


Crore. Rs. 267.2

2 Average annual retained profit over


Crore. Rs 26.7

3 Cumulative cash surplus over


Crore. Rs 186.3

4 Average Debt-service coverage ratio over 10

years of operation

Ratio 1.51

5 Pay-back period Years 7.9

6 Break even capacity % 63

7 Internal rate return (IRR) over 20 years

Of operation

Pre-tax

Post-tax

%

%

22.1

18.8





18.02 Profit & Loss and Cash Flow Statement and projected Balance sheet

The profit and Loss statement, cashflow statement and projected balance sheet

for 10 years of operation has been given in Table-18.02, 18.03 and 18.07

respectively.

18.03 Internal Rate of Return (IRR)

The internal rate of return (IRR) has been calculated considering 20 years project

life by employing discounted cash flow (DCF) technique. The IRR for the project

works out as follows:

IRR - Pretax : 22.1 %

IRR - Posttax : 18.8 %

18.04 Pay Back Period

The pay back period is defined, as the period required for recouping the original

investment outlay through the cash profit after tax. The pay back period for the

project works out to 7.9 years.

18.05 Break even analysis

Break even analysis determines the break-even point (BEP)- the level of capacity

utilization at which no profit no loss status can be achieved. The break even

capacity has been calculated as 63 % and presented in Table- 18.04.





18.06 Debt Service Coverage Ratio (DSCR)

The debt-service coverage ratio for 10 years works out as 1.51 and details are

furnished in Table 18.05.

18.07 Net sales realization

The Average market price of galvanized TLT products have been found varying in

the range of Rs 55000/T to Rs 75000/T depending on various producers and

their loading position in terms of orders .It is a competitive market with

presence of many suppliers with small to large capacities. The actual feel of

bottom of sales realization is difficult to get, however depending upon limited

interactions and market feedback; it has been decided to adopt Rs 59000/T as

average net sales realization for the total finished products for purpose of

working out profitability.

18.08 Assumptions

Financing and repayment of loan

The total project cost is assumed to be financed in debt equity ratio of 3:1.

The long term loan is considered to be repaid in 32 equal quarterly

installments bearing interest of 12% p.a. with two years moratorium on

repayments from date of commercial operation.

Capacity utilization

It is assumed that the plant would operate at 80 % capacity during first year,

90% during second year and 100 % during third year and onwards.





Depreciation

Depreciation has been worked out based on straight-line method and

written-down value (WDV) method as per existing income tax rules. The

straight-line method has been adopted in profit and loss statement, whereas

the WDV method has been adopted for working out the incidence of

corporate tax. The details are given in Table 18.06.

Corporate tax

Corporate tax has been assessed on taxable profit @ 32.99% (30.0%+10%

surcharge+3% Ed.cess). Minimum alternate tax (MAT) has been taken into

consideration wherever applicable.

CENVAT benefit

CENVAT benefit, as permissible, with regard to countervailing duty and

special addl. duty for imported capital goods and excise duty and service tax

for indigenous capital goods/services has been considered during operation

period.

18.08 Sensitivity analysis

Sensitivity analysis has been carried out for the variations in capital costs,

Conversion costs and D:E ratio. The result of this analysis is summarized in Table

18.07.





Table-18.08

Sensitivity Analysis

Sl. No. ItemPost-Tax IRR

(%)

1. Base case 18.8%

2. Variation in capital cost

+10% 17.1%

-10% 20.9%

3. Variation in conversion cost

+10% 17.4%

-10% 20.1%

4. Variation in D:E ratio

2:1 18.5%

2.33:1 (70:30) 18.6%

1:1 18.1%





Table-18.02





Table-18.03





Table-18.04





Table-18.05





Table-18.06





Table-18.07

Note: Minor mismatches due to rounding may be ignored





19 INDUSTRIAL SAFETY

SAFETY

Safety of personnel and the plant are of paramount importance and this

cannot be over looked. The following two major schemes are proposed to

cover the safety aspect viz. the fire protection system & area illumination.

Apart from this effective and efficient communication system, instructions

for safety goals and orientation programme for new employee have been

envisaged.

A. FIRE PROTECTION SYSTEM

Prevention and fighting of fire is one of the most vital aspects for any

industrial establishment. In a steel plant there are many areas, which are

susceptible to fire, and it calls for appropriate provision of fire protection

measures. The basic guiding factor comprises of both prevention as well as

extinguishments of fire. An elaborate system of fire protection has been

envisaged to tide over any such eventuality efficaciously. The system has

been planned in conformity with Tariff Advisory Committee’s guidelines, BIS

and other relevant standard/codes. The complete fire protection system will

comprise of the following sub-systems:





i) Fire detection and alarm system

ii) Fire Hydrant System

iii) Water spray system

iv) Automatic Carbon dioxide (CO2) system

v) Passive fire protection

vi) Portable fire extinguishers

Communication facilities

i. EPABX Telephone At strategic locations

An EPABX telephone exchange having adequate lines exclusively for

fire services department shall be provided to meet the emergency

requirement. This telephone exchange shall be compatible with VHF

sets.

ii. V.H.F. Sets

One separate frequency with sufficient VHF sets shall also be

envisaged for the use of fire service department.

B. AREA ILLUMINATION

Illumination of new roads, new approach roads to shops and area

adjacent to new shops/ extension of existing shops is a safety aspect and





it is proposed to cover such illumination requirements under this

scheme.

The following goals shall been suggested to establish for safety in the

plant premises:

a) A safe work environment.

b) Conduction of routine/regular workplace inspections.

c) Provision of Personal Protective Equipment.

d) Awareness and emphasis on implementation of safe work procedures

and rules.

e) Provision on-going safety training.

f) Enforcement of safety rules and appropriate discipline.

Mandatory for new employees: it will be mandatory for all new

employees to attend the Safety Orientation Session prior to starting

work within their assigned area. This session will be conducted under

the direction of the trained Safety officer and in coordination with

Human Resources. Upon completion of the Safety Orientation Session,

each new employee will be required to acknowledge that they have

received, understand, and will abide by the Company Safety Program. All

participants must sign a statement verifying that they have completed

the session.





20 DRAWINGS

List of drawings enclosed with the report is given below:

Sl.

No.Description Drawing Number Rev

1. General Layout MEC/11/14/123J/TEFR/001 3

2. Shop Layout of Fabrication &

Galvanizing UnitMEC/11/24/123J/TEFR/002 0

3. Material Flow MEC/11/24/123J/TEFR/003 2

4. Water Balance Diagram MEC/11/40/123J/TEFR/001 1

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