project report Ravindra nath Rajput (Repaired).doc

A comparison of Procurement and Management of Indented Materials for Captive Power Plant for smooth Operations between Adhunik Alloys & Power Limited & Nalwa Steel & Power (Sponge iron and Power Plant)

A

PROJECT REPORTOnA comparison of Procurement and Management of Indented Materials for Captive Power Plant for smooth Operations between Adhunik Alloys & Power Limited & Nalwa Steel & Power (Sponge iron and Power Plant)

Submitted in the partial fulfilment for the award of Degree of Master of Business Administration(Operations Management)SIKKIM MANIPAL UNIVERSITY, INDIA

Submitted by:

Ravindra Nath RajputEDUCATION CARE(LC Code: 10601)Bangalore(Karnataka)

APROJECT REPORT

On


Submitted in the partial fulfilment for the award of Degree of Master of Business Administration(Operations Management)SIKKIM MANIPAL UNIVERSITY, INDIASession 2014-2015

Guided by: Submitted by:

Shilpa Chourawar & Sandeep Mishra Ravindra Nath Rajput

Enrolment number: 1305001295

ITCG0502 MBACG0526

(SMUDE Registered Guide code as above)

Submitted to:

Senior Faculty (Operation Management)EDUCATION CARE SMUDE(LC Code: 10601)Bangalore (Karnataka)

DECLARATIONI Ravindra Nath Rajput, student of MBA IVth Semester in the year -2014-2015 hereby declare that, I have undergone the project work on


This project report is an original work carried out by me and the report has not been submitted to any other University for the award of any degree or diploma.

Ravindra Nath Rajput

Enrolment no: 1305001295

To whom it may concernThis is to certify that Ravindra Nath Rajput student of MBA IVth Semester in the year 2014-2015 has undergone the project work on

Procurement and Management of Indented Materials for Captive Power Plant for smooth Operations in Adhunik Alloys & Power Limited (Sponge iron and Power Plant)

The subject matter of this thesis is a record of original investigations carried out by the candidate .To the best of my knowledge; the contents of thesis did not form a basis for the award of any previous degree to her or to any other person.

The effort put by Ravindra Nath Rajput in the project is outstanding .The findings of the project have been the greatest interest and use to us.

I wish to Ravindra Nath Rajput all success in his professional career.

Date: -28.03.15 Guide Name: Sandeep Mishra (PGDBMR,Jodhpur)

SMUDE Registered Guide Code:MBACG0526

(Senior Faculty)

Akash Institute Of Management,Bilaspur (C.G)

SMUDE CODE:03250

Place-Bilaspur

Examiners Certification The project report of

Mr. Ravindra Nath RajputOn

Procurement and Management of Indented Materials for Captive Power Plant for smooth Operations in Adhunik Alloys & Power Limited (Sponge iron and Power Plant)

Is approved and is acceptable in quality and form.

Internal Examiner: External Examiner:

---------------------------- --------------------------- ------------------------------------- ------------------------------------- ACKNOWLEDGEMENTFirst and foremost, I thank almighty for keeping me hale and healthy forsuccessful completion of the project.

I express my respectful and sincere thanks to my guide Miss Shilpa Chourawar for herkind words and continuous encouragement which has inspired me in completion of the synopsis.

Her support provided a wonderful atmosphere which had enabled me to do not only this project work but also the academic activities.After her marriage and moving to Vadodara,Gujarat Sri. Sandeep Mishra guided with same zeal.I express my deepest gratitude to HOD (Akash Institute of Management) to do this project. I profoundly thank Mr. Sandeep Mishra (HOD, Operation Management) for providing a great opportunity to do this project.

I am also taking the pleasure to express my sincere thanks to all other staff members of Education Care for their kind co-operation.

Last but not least, I would like to convey my sincere gratitude to my parents and friends, who have always been a source of inspiration towards the completion of this project.Ravindra Nath Rajput

Enrolment No - 1305001295

INDEXS.No.ContentsPage No.

1.Introduction

1.1 About the company

1.2 .AN OP JINDAL GROUP COMPANY: STEEL MANUFACTURER, WIRE ROD, BILLET, SPONGE IRON, ISO 9001-2000, 14001 CERTIFIED COMPANIES

1011

2. Procurement of

Indented materials2.1 Introduction to coal

2.2 PRODUCTION & CAPACITY

17

18

3.Process Flow Chart

&

Organizational Flow Chart 3.1 EXCUTIVE SUMMARY

3.2 Process Chart45

46

49

4. Quality Analysis

4.1 QUALITY ASSURANCE

4.2 AWARDS & RECOGNITIONS

61

62

63

5. Mode of Payment & Financial Results

& Data analysis5.1 MODE OF PAYMENT OF STEEL

5.2 FINANCIAL RESULTS

5.3 ANALYSIS FINANCIAL POSITION OF THE COMPANY

65

66

67

70

6. LOGISTICS

6.1 HUMAN RESOURCE

6.2 CSR

6.3 SUSTAINABILITY76

78

79

7.RESEARCH METHODOLOGY

7.1 RESEARCH DESIGN

7.2 DATA COLLECTION

7.3 RESEARCH INSTRUMENT7.4 SAMPLING PLAN

7.5 SAMPLING UNIT

7.6 SAMPLE SIZE

7.7 FINDINGS

81

82

8. CONCLUSION87

9.BIBLIOGRAPHY88

1.INTRODUCTION1.1 About the companyAdhunik Group, the Rs.3,500 crore conglomerate, is one of the fastest growing groups in India. It is engaged in mining, steel, power, and value added steel products, catering to a vast and quality-focused customer base.

With a dependable and committed employees and a strong customer support, the Group has emerged as a steady performer, undeterred even during cyclical fluctuations and unsteadiness of the market. It has grown continuously, backed with strong financial performance.

The Group has steel manufacturing facilities in Orissa and Jharkhand. Besides, it has a chain of value-added products including carbon and alloy steel billets, auto-grade steel rolled products, rounds and flats (4,50,000 TPA), TMT bars and wire rods (1,50,000 TPA), sponge iron (5,10,000 TPA), pig iron (2,31,000 TPA), Ferro alloys products including Ferro manganese, Silico manganese, Ferro silicon (50,000 TPA) and stainless steel products (1,20,000 TPA).

The Group has embarked upon an ambitious expansion plan in the power sector. It is implementing a 540 MW power plant in Jharkhand which is on the verge of completion. The Group has also secured captive coal block for this 540 MW power It has an existing power generation capacity of 64 MW which is being captively consumed.

In the mining sector, it has iron ore and manganese ore mines in Jharkhand and Odisha, respectively. The Group has mining resources including iron ore, coal, manganese ore and lime stone which are the key inputs of production. The Group has also set up 1.2 Million ton Pellet and Beneficiation plant in Jharkhand to utilize the low grade iron ore fines and convert them into value added product Pellet.

Over the years the Group has shown robust operational results and has an excellent track record of growth and profitability.

Adhunik Group

1.1.1 Adhunik Alloys & Power LimitedAdhunik Alloys & Power Limited (AAPL), a part of the Adhunik Group, located at Kandra in Jharkhand, is an integrated steel plant based on Sponge Iron Technology. AAPL has 2 x 350 TPD DRI Plant with an installed capacity of 220,000 M.T.P.A, a Coal Washery of 1,000 TPD, a 30 MW Captive Power Plant, 2 x 30 ton Induction Furnaces and a 2-strand Continuous Caster and Rolling Mill of 147,700 TPA.

The steel plant is based on green technology, where waste heat recovery of DRI and washery rejects are used to generate green power. The plant has its own Railway siding. The Company has also been allotted the North Dhandu Coal block in Latehar district, Jharkhand. Allotment of iron ore mines is in an advanced stage of necessary approvals and development. These resources are to be used on a captive basis for the production of steel.

AAPL has adequate land for setting up full-fledged steel manufacturing facilities. It is an ISO certified company and is concerned about the environment in and around the plant area. AAPL has also been granted license by the Central Electricity Regulatory Commission, New Delhi, for inter-state trading of electricity for selling the surplus power.

After successful implementation of the initial phase, the group has taken up second phase of expansion plan viz. setting up of Integrated Steel Plant for production of high value added steel products, like Angles, Beams and Flats, to be utilized by the Power & Telecommunication industries and their ancillaries. The company has recently completed its second phase expansion as well by setting up 0.15 MT integrated steel plant supported by Direct Reduced Iron (DRI) plant with an installed capacity of 220,000 M.T.P.A., 30 MW captive power, private railway siding and a coal feed washery.

The Company has also been allotted North Dhandu Coal block at Dist Latehar, Jharkhand. Allotment of iron ore mines is also at various stages of necessary approvals and development. With captive co-generation of power, private railway siding and captive iron ore and coal mining rights, the current expansion project shall assist in achieving low production cost, thereby allowing to withstand fluctuation in sales prices in future due to cyclic nature of steel industry.

1.1.2 Vision of the company

Our Vision

To attain leadership in all our businesses through a relentless pursuit of excellence, while delivering superior value to our stakeholders.Teamwork Encourage a culture that promotes cohesive working and respect for each individual's ability

Integrity Demonstrate high standard of ethics, transparency and reliability in our conduct.

Courage Encourage calculated risk taking and a quest for challenging goals.

Commitment to stakeholdersContinuously deliver superior value to all our stakeholders (employees, customers, community and shareholders).

Customer FocusDelight customers by consistently exceeding their expectations.

Trust Build long lasting relationships with employees, customers, community and shareholders based on trust.

Goal of the Company:1. To be one of India's fastest growing conglomerates2. To be among the top 5 in India across all our businesses3. To continuously identify and seize global opportunities for growth4. To be one of the best places to work for5. To contribute to society by delivering superior value to all our stakeholders

1.1.3 Captive Power Plant (CPP) 34 MW CPP has been set up for power generation from waste heat coming out from the DRI plants and solid waste coming from coal washery and DRI plants.

The 34 MW captive power plant is generating 12 MW electricity using waste heat from Adhunik's DRI plant and balance 22 MW solid waste from the DRI plant and coal washery. The capacity calculation is as under: ParticularsExisting 34 MW

Plant Installed Capacity (MW34

No. of Working Hours per day24

No. of Working Day per day330

Annual Generation of Power (Mu)269.28

Captive Power Plant will be to ensure availability of adequate electrical energy in a cost effective manner utilizing primarily off gases and waste by-products of various modules. Adhunik further plans to expand its captive power plant capacity to 79 MW by setting up an additional 45 MW captive power plant.

1.2 .AN OP JINDAL GROUP COMPANY: STEEL MANUFACTURER, WIRE ROD, BILLET, SPONGE IRON, ISO 9001-2000, 14001 CERTIFIED COMPANIES

1.2.1 PREAMBLE

NALWASteel And Power Limited is a part of the O.P. Jindal Group founded by the great visionary Late Shri O.P. Jindal in 1952. The Group has emerged as one of the Largest Steel Producer in the country and has been a symbol of Innovativeness and Excellence right from its inception. It has taken over the Pole Position in the modern day steel manufacturing sector. It is a Multi-Location, Multi-Product Group with diverse interest in Mining, Steel, Coal, Diamond, Oil and Power. The Group has established its plants under the name of Jindal Steel and Power Limited at Raigarh, Barbil, Patratu, Angul; Jindal Power Limited at Raigarh; Jindal Steel Bolivia at, EI Mutun Bolivia in South America; Jindal Petroleium Limited at India, Georgia and Bolivia; Jindal Stainless Ltd at Hissar and Jajpur; JSW Steel Ltd at Bellary and Mumbai. Jindal Saw Ltd at Kosi and Mundra in Gujarat.

The Group also acquired the development rights for 20 million tonnes of EI Mutun Iron Ore Reserves in Bolivia (South America). This is the largest investment by an Indian company in Latin America and also the largest foreign investment in a single project in Bolivia. The company will invest US $2.1 billion over the next 8 years for mining and setting up of an integrated steel plant with the capacity of 1.7 million tonnes per annum.

Our primary motto is Customer Satisfaction, Quality, Health, Safety and Environment. The Group has also received the prestigious ISO 9001-2000, ISO 14001 standards of accredition.

1.2.2 MISSION-N-VISION:-NALWA Steel & Power Limited is committed to becoming a globally recognized name as a quality, integrated steel manufacturer. Within the domain of its objectives, it is committed to maintaining world-class quality standards, efficient delivery schedules, and competitive price and excellent after sales services.

2.Procurement of

Indented materials

The main raw material for generation of power is coal.The prompt supply and quality of coal is necessary for regular and required power for the plant.I, therefore, decided to discuss the availability and quality of the coal required for captive power plant.2.1 Introduction to coal

Why is coal so important to everyday life in India? Coal is the Indias most abundant, safe and secures fossil fuel -it is also clean and cost-effective

Abundant -extensive reserves of coal are present in many states.

Safe -coal is stable and hence the safest fossil fuel to transport, store and use.

Secure -abundant reserves mean that coal users are guaranteed security of supply at competitive prices; hence electricity supplies for industrial and domestic use are assured.

Clean -using current and new technologies, coal can be cleaned and burnt cleanly throughout India.

Cost-effective -globally, coal is a competitive fuel for the generation of electricity, without which modern life would be virtually impossible. It is the major energy source for power generation worldwide.

Currently, some 63% of the electricity generated in India is produced from coal. Indias iron and steel industry also depends on the use of coal -it is the principal form of reluctant in the metallurgical industries.

The importance of other fossil fuels (oil and gas) and alternative energy sources (such as nuclear and renewable) cannot be ignored. Today, none of these alternatives offers a trouble-free, long-term economical source of energy. At current production levels, known coal reserves are forecast to last over 200 years -significantly longer than known reserves of oil or gas. However, all fossil fuel reserves are finite -they need to be used as efficiently as commercially possible in order to conserve valuable resources.Renewable energy sources, such as hydro, wind, solar, biomass, wave and tidal do provide alternative sources for power generation. However, all face problems including economic viability and environmental acceptability -with the exception of hydro, none will offer meaningful energy supplies for several decades.

As the global population grows and as living standards improve in the developing world, international demand for energy increases, often at a dramatic rate. Coal is the most abundant, widely distributed, safe and economical fossil fuel available to meet this escalating energy demand.

Coal is a non-renewable fossil solid fuel formed by a series of natural geo-chemical processes for the plant remains accumulated together with other sediments. It is a combustible brown to black sedimentary rock, composed of heterogeneous components. Coal characteristics

Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. . Coal is composed primarily of carbon along with variable quantities of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.Throughout history, coal has been a useful resource for human consumption. It is primarily burned as a fossil fuel for the production of electricity and/or heat, and is also used for industrial purposes such as refining metals. Coal forms when dead plant matter is converted into peat, which in turn is converted into lignite, then anthracite. This involves biological and geological processes that take place over a long period of time. 2 C + O2 ---> 2 CO + heat ; 2 CO + O2 ---> 2 CO2 + heat.Coal, a fossil fuel, is the largest source of energy for the generation of electricity worldwide, as well as one of the largest worldwide anthropogenic sources of carbon dioxide releases. Destructive distillation of coal gives gaseous fuels, Pyroligneous acid having methanol and acetic acid and aromatic hydrocarbons.

Coal Demand & Supply

Future Outlook of coal

The U.S., Russia, Australia, China, India and South Africa have the largest coal reserves in the world. Coal is produced in 25 states in the U.S. though the bulk of current production takes place in just five states: Wyoming, West Virginia, Kentucky, Pennsylvania and Montana.

According to estimates by the Energy Information Administration (EIA), the countrys current coal reserves will last for 168 years at current production rate. They will most likely last even longer with environmental issues coming in the way. However, if the fuels environmental standing can be improved, there could potentially be new sources of end-market demand in the future, in the communications and transportation systems, computer networks and even space expeditions.

As per the World Coal Association, proven global coal reserves will last nearly 112 years at current production rates. On the other hand, proven oil and gas reserves are projected to last around 46 years and 54 years respectively at current production levels. Asia is the biggest coal market and presently accounts for 67% of the global coal consumption.

Coal Dominates U.S. Power Generation: Coal as a major source of fuel for power generation dominates the Utility industry. Coal is used to generate about half of the electricity consumed in the U.S. and is also the largest domestically-produced source of energy. Electricity generation absorbs about 93% of total U.S. coal consumption. The reason is simple: coal is by far the least expensive and most abundant fossil fuel in the country, though the emergence of large shale natural gas reserves is expected to pose tough competition going forward.The EIA report also suggests U.S. coal production will increase by 1% in 2013 and 1.3% in 2014, primarily due to an expected rise in natural gas prices from 2012 levels. The relative increase in US natural gas price, compared to coal, will also increase the share of coal in electricity generation. The EIA report suggests coals share in electricity generation in 2013 will reach 39.5%, up from 37.4% in 2012. Admittedly, the dominance of coal as a source of electricity generation has diminished with the availability of other fuel sources. However, as per an EIA report, coal will continue to be the major source of electricity generation in the U.S. until 2035.

In contrast, petroleum and nuclear power as sources of power generation have been losing market share, displaced by the strong growth of renewable sources of generation and natural gas-fired generation. Petroleum is losing out to coal because it is becoming increasingly expensive. After the Japan earthquake/tsunami in 2011, nuclear powers contribution to total energy generation has declined from the prior year.

Not Just Electric Generation: Electricity generation is just one use of coal in the U.S. Manufacturing plants and industries use coal to make chemicals, cement, paper, ceramics and metal products, to name a few. Methanol and ethylene, which can be made from coal gas, are used to make products such as plastics, medicines, fertilizers and tar.

Certain industries consume large amounts of coal. For example, concrete and paper companies burn coal, and the steel industry uses coke and coal by-products to make steel for bridges, buildings and automobiles.

Coal as an Input for Steel Industry: Due to its heat-producing feature, hard coal (metallurgical or coking coal) forms a key ingredient in the production of steel. Nearly 70% of global steel production depends on coal. Any improvement in the production of steel will also bring in fresh demand for coking coal. In Feb 2013 global steel production increased 1.2% year over year. ??Global steel demand in 2013 is expected to improve marginally from 2012 levels, which will benefit the coal industry. Coal Analysis

AProximate Analysis

Design CoalWorst CoalBest Coal

Fixed Carbon31.00%27.00%42.00%

Volatile matter22.00%18.00%27.90%

Ash36.00%40.00%21.00%

Moisture11.00%15.00%9.10%

GCV (kCal/kg)420038004900

B)Ultimate Analysis

Carbon

43.10 %38.00 %53.90 %

Hydrogen

2.85 %2.50 %3.00 %

Nitrogen0.9 %0.50 %1.20 %

Sulphur0.4 %0.60 %0.30 %

Moisture11.0 %15.00 %9.10 %

Oxygen5.75 %3.40 %11.50 %

Ash36.00 %40.00 %21.00 %

GCV (kCal/kg)420038004900

C)Handgrove Index504555

D)Initial Deformation temp.

1170 PoPC1170P oPC1170P oPC

Hemispheric temp.

1300 PoPC1300P oPC1300P oPC

Flow1400 PoPC1400P oPC1400P oPC

ANNEXURE 2

Input Data from other interfacing systems

Coal consumption

Item 1600MW3600MW6600MW

Hourly design coal consumption (t)345.71037.12074.2

Hourly worst coal consumption(t)386.71160.12320.2

Daily design coal consumption (t)8296.824890.449780.8

Daily worst coal consumption(t)9280.827842.455684.8

Annual design coal consumption(t)3028332908499618169992

Annual design coal consumption(t)33874921016247620324952

In which daily operation time of unit will be 24 hours, the annual operation time of unit will be 8760 hours.ANNEXURE - 3

DESIGN METHODOLOGY & SAMPLE CALCULATIONS

1. CAPACITY OF BELT CONVEYOR: QBMAXB=KBP2Pv (t/h) QBMAXB-------Maxmium capacity of belt conveyor K-----------Factor for cross section of belt conveyor v----------- Speed of belt conveyor ------------Coal density1.1 All belt conveyors in CHP system (except C-2ABCD belt conveyors) B=1400mm K=415 v=3.0m/s =0.8t/mP3P QBMAXB=4151.4P2P3.00.8 =1952.16 t/h QBratedB=1800 t/h 1.2 C-2ABCD belt conveyorsB=1800mm K=425 v=2.0m/s =0.8t/mP3P QBMAXB=4251.8P2P2.00.8 =2203.2 t/h QBratedB=1800 t/h 2. CAPACITY OF TRACK HOPPER:

Q=SL Q---------Capacity of track hopper S----------Area of track hopper for coal storageL----------The effective length of track hopper ----------Coal density (0.8t/mP3P)The cross section of track hopper:The hatched area in right drawing is the area for coal storage.The hatched area is about 34.52mP2P Q=SL =34.522400.8 =6628 t CAPACITY OF COAL STORAGE YARD:3.1 Layout of coal storage yard

3.2 Capacity of coal storage yard in contact

Hourly coal consumption for six units at BMCR state: 2074.2 t/hDaily coal consumption for six units at BMCR state: 2074.224=49780.8 t/d15 days coal consumption for six units at BMCR state:49780.815=746712 t3.3 Calculation for coal storage yard

Volume of coal pile: V=[ab+aB1BbB1+abB1aB1b0.5B]h/3 =[37250+34119+(3725034119)0.5] 133 =156246mP3Capacity of coal pile: QB1B=V (-----Coal density, 0.8t/mP3P) =1562460.8 =124996.8 tCapacity of six coal pile: Q=6 QB1B =6124996.8 = 749980.8 tANNEXURE 4

EQUIPMENT DATA SHEETS, AS REQUIREDLIST OF MAIN EQUIPMENT AND MATERIAL

No.DESIGNATIONTYPE AND SPECIFICATIONUNITQTY.REMARKS

1Coal unloading equipment

1.1Paddle feederQ=1080t/hset8

1.2Compressed air system Pressure 7kg/cmP2P , capacity 5NmP3P/min set2

2Coal storage equipment

2.1Bucket wheel stacker/reclaimerStacking capacity 1800t/h, reclaiming capacity 1800t/hslewing radius 40mset3The reclaiming bucket wheel will be of hydraulic drive

2.2Bulldozer220hpset11

3Conveyor system

3.1C-1ABCD belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBhB=303.500mset4The head of C-1 belt conveyor will be four-position telescopic device.

3.2C-2ABCD belt conveyorB=1800mm,V=2m/s Q=1800t/h, LBhAB=188.000m, LBhBB=202.000m, LBhCB=202.000m, LBhDB=188.000mset4

3.3C-3ABCD belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBhB=93.950m,set4





3.8

C-8AB belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBhAB=281.320m, LBhBB=284.820m, set2

3.9C-8CD belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBh=B152.450mset2

3.10C-9CD belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBh=B278.900mset2

3.11C-10AB belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBh=B161.350mset2



3.13C-12 belt conveyorB=1400mm,V=3m/s Q=1800t/h, LBh=B482.000mset1The head of C-12 belt conveyor will be five-position telescopic device.



4Coal processing equipment

4.1Crusher and isolationRing hammer type, capacity 1800t/h,Inlet size300mm, outlet size30mmset4

4.2ScreenRoller type, capacity 1800t/h,Inlet size300mm, outlet size30mmset4

4.3Buffering drumCapacity 1800t/hset4

5Iron removing, weighing and sampling equipment

5.1Disc magnetic separatorFit for B=1800mm belt conveyor, magnetic strength 120mTset4



5.3Belt magnetic separatorFit for B=1400mm belt conveyor, magnetic strength 120mTset7

5.4Metal detectorFit for B=1800mm belt conveyorset4

5.5Metal detectorFit for B=1400mm belt conveyorset4

5.6As-received sampling deviceFit for B=1800mm belt conveyorset4

5.7As-fired sampling deviceFit for B=1400mm belt conveyorset4

5.8Belt scaleFit for B=1400mm belt conveyorset8

5.9Test-chain calibratorFit for B=1400mm belt conveyorset8

6Other equipment in coal handling system

6.1Plough dischargerFit for B=1400mm belt conveyor Q=1800t/hset80

6.2Motor driven three way diverterFit for B=1400mm belt conveyor, 10001000mmset20

6.3Water scrapperFit for B=1400mm belt conveyorset6

6.4Buffering and dust-locked deviceFit for B=1400mm belt conveyorset12

7Material

7.1Steelton~180Used for making coal hoppers, coal chutes and support or brackets

7.2LIner10mm thickness stainless steelmP2P~750Lined in coal hoppers and coal chutes

2.2 PRODUCTION & CAPACITY

We have 6 Coal-based Kilns wherein Sponge Iron is being produced with Fe-Metallic of more than 80% since it uses its own iron ore and coal. The Steel Making division consists of 4 medium frequency Induction Furnaces of 12MT each. It has LRF facility to refine the metal. We have a 3 strands continuous casting machine with the capacity to produce Billets of 100 mm to 130 mm. The unit is relentless effort in technological up gradation, seamless integration in facilities and processes has enabled it to produce a wide range of grades in diverse shapes like TMT Bars from 8.0 mm to 32.0 mm in Fe 415, Fe 500, Fe 550 and Fe 415D, Fe 500D, Fe 550D grades. Wire Rod coils of multiple grades conform to national and international standards, meeting the stringent demands of the discerning customers. 2.2PRODUCTS:-

2.2.1 SPONGE IRON

At NALWA Steel And Power Limited, Coal-based sponge iron is manufactured using 6 indigenously developed rotary kiln, with a capacity of 1,98,000 MT Per annum. Growth and Expansion plans include an additional 1,98,000 TPA capacity of Sponge Iron with the commissioning of 6 rotary kilns. 2.2.2BILLET/INGOT

We have Medium Frequency Induction Furnaces. The metal is cleaned by ladle refining furnace of 7.2 MVA power. With the help of 3 strands continuous casting machine, we are capable of producing the highest quality Billets from 100 mm* 100 mm to 130 mm.2.2.3WIRE ROD:-

Size : 5.5, 6.0, 6.5, 7.0, 8.0, 10.0, 11.0, 12.0mm

Tolerance : As per Indian Standards IS: 1832

Controlled Cooling through STELMOR Process.

2.2.4 THERMOS MECHANICAL TREATMENT (TMT):-

THERMOS MECHANICAL TREATMENT (TMT)is a combination of Plastic deformation of steel in austenitic stage followed by quenching and further tempering. In this process, the structure of hardened and tempered steel is formed under conditions of high dislocation density due to strain hardening. The Thermo Mechanical Treatment provides a large margin of ductility and better structural strength. It raises the impact strength at room and low temperature and lowers the cold shortness threshold, susceptibility to temper brittleness. The dislocation formed in austenite during mechanical working in its austenitic state is inherited after hardening in martensite.

Process :TEMPCORE (CRM-Belgium)

Size : Round 8.0mm, 10.0mm, 12.0mm, 16.0mm, 20.0mm, 25.0mm, 28.0mm, 32.0mm

Grade : 1786-2008

2.2.5 POWER:-

Power is a fundamental component with ubiquitous presence and high significance. Every Nation, whether developed or developing, strives to expand its power resources. It plays a pivotal role in keeping the economy moving, from infrastructural development to various industrial, commercial and domestic applications.

Contributing immensely to the growing power needs, we have taken a quantum leap in this core sector. We harbor a vision to provide adequate energy and hence make significant contribution in setting a right pace of the country's economy. With high spirits and great performing capabilities, we have already embarked on a journey towards 'Power Sufficient India'. Owing to our innovative and pro-active approach towards power generation, our engineers have installed a 24MW power plant. This power plant will meet our captive requirements by using waste heat from the rotary kiln boilers and the coal rejects of the washery.2.2.6 Rolling Mill

With a capacity of 220,000 TPA, the Rolling Mill has been set up for the manufacturing of rolled products for automobile and engineering sector. Considering the fact that Alloy & Stainless Steel blooms require quick heating (to avoid decarburisation) and thorough soaking to achieve trouble free rolling, a Top & Bottom Fired Walking Beam Type Reheating Furnace has been set up in the Rolling Mill. The installed capacity of the rolling mill (with 45 TPH re-heating furnace) is 220,000 TPA.

Annexure-II

The estimated cost of the project based on October 2013 price level is as follows

Considering 50% funding from World Bank and 50% funding as Grant from DONER/GOI

(Rupees in crores)

TRANSMISSION SYSTEM

(Part-A)

DISTRIBUTION SYSTEM

(Part-B)

TOTAL

NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I : MANIPUR

TRANSMISSION / DISTRIBUTION SYSTEM COST

175.79

150.88

326.67

CONTINGENCIES

5.28

4.53

9.81

IDC

12.01

10.31

22.32

CONSULTANCY FEES

24.41

20.96

45.37

TOTAL:

217.49

186.68

404.17

ANNEXURE-1.0

ABSTRACT COST ESTIMATE

(BASE COST)

NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I

MANIPUR PART A TRANSMISSION / SUB TRANSMISSION SYSTEM

(DEPOSIT WORK FOR DONER)

(Cost updated to OCTOBER 2013 Price level)

Sr.

NO.

DESCRIPTION

AMOUNT

(Rs. in crs)

A

Preliminary Survey & Investigation (Annex 1.1)

0.89

B

Land Acquisition for substation and R&R Compensation (Annex 1.1)

3.50

C

Cost of Compensation for Transmission Lines (Annex 1.1)

i) Compensation towards crops, tree & PTCC

14.50

ii) Compensation towards Forest

5.36

D

Civil Works (Annex 1.1)

i) Infrastructure for substation

6.96

ii) Non Residential building

3.10

iii) Colony for trans. Lines & substations

18.44

E

Equipment (Supply & Erection) Cost

a) Trans lines

59.93

b) Sub-stations

52.85

c) Voice & Data connectivity

10.25

F

Sub-total (A to E)

175.79

G

Contingencies (@ 3% of F)

5.28

H

TOTAL COST EXCL. CONSULTANCY FEES

181.07

I

POWERGRID CONSULTANCY FEES @12% & SERVICE TAX THEREON

24.41

J

TOTAL PROJECT COST INCL CONSULTANCY FEES

205.48

K

Interest During Construction (IDC) on loan portion

12.01

GRAND TOTAL

217.49

Note:

1. The Project is proposed to be partly funded by the World Bank (50%) and the balance through Grant from GOI (50%). Hence IDC has been calculated for loan portion (50% of project cost incl consultancy fees) only

2. The above cost is inclusive of voice & data connectivity amounting to Rs.

Rs. 10.25 cr

3. The above cost includes

i) Land Acquisition for SS and R&R compensation

Rs. 3.50 cr


Rs. 5.36 cr

ANNEXURE-1.0 B

ABSTRACT COST ESTIMATE

(BASE COST)

NER POWER SYSTEM IMPROVEMENT PROJECT TRANCHE-I

MANIPUR PART B DISTRIBUTION SYSTEM

(DEPOSIT WORK FOR DONER)

(Cost updated to OCTOBER 2013 Price level)

Sr.

NO.

DESCRIPTION

AMOUNT

(Rs. in crs)

A

Preliminary Survey & Investigation

0.06

B

Land Acquisition for substation and R&R Compensation

6.50

C

Cost of Compensation for Transmission Lines

i) Compensation towards crops, tree & PTCC

0.56


2.20

D

Civil Works

i) Infrastructure for substation

6.03

ii) Non Residential building

iii) Colony for trans. Lines & substations

E

Equipment (Supply & Erection) Cost

a) Trans lines (Annex-1.2B)

15.67

b) Sub-stations (Annex- 1.3B)

109.34

c) Voice & Data connectivity (Annex- 1.4B)

10.53

F

Sub-total (A to E)

150.88

G

Contingencies (@ 3% of F)

4.53

H

TOTAL COST EXCL. CONSULTANCY FEES

155.41

I

POWERGRID CONSULTANCY FEES @12% & SERVICE TAX THEREON

20.96

J

TOTAL PROJECT COST INCL CONSULTANCY FEES

176.37

K

Interest During Construction (IDC)*

10.31

GRAND TOTAL

186.68

Note:

1. The Project is proposed to be partly funded by the World Bank (50%) and the balance through Grant from GOI (50%). Hence IDC has been calculated for loan portion (50% of project cost incl consultancy fees) only

2. The above cost is inclusive of voice & data connectivity amounting to Rs.

Rs. 10.53 cr

3. The above cost includes

i) Land Acquisition for SS and R&R compensation

Rs. 6.50 cr


Rs. 2.20 cr

SALIENT FEATURES OF THE ELECTRICITY ACT, 2003

Objective: An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto

PART-I: This part deals with the jurisdiction of the law and important definitions

PART-II: This part deals about National Policy and Plan to be prepared by Central Govt. in consultation with state Govt. National Policy and National Electricity plan needs to be published in Gazette / News paper once in 5 years.

PART-III: This part deals about generation of electricity

Generating company and requirement for setting up of generating station

Hydro-electric generation

Captive generation

Duties of generating companies

Directions to generating companies

PART-IV: This part deals licensing for transmission of electricity, distribution and undertaking trading in electricity.1. Authorised persons to transmit, supply, etc. electricity

2. Power to exempt

3. Grant of license

4. Procedure for grant of license

5. Conditions of license

6. Licensee not to do certain things

7. Amendment lf license

8. Revocation of license

9. Sale of utilities of licensees

10. Vesting of utility in purchaser

11. Provisions where no purchase takes place

12. Directions to licensees

13. Suspension of distribution license and sale of utility

PART V: This part deals transmission of electricity including inter-state, regional and inter-regional transmission system.14. Inter-State, regional and inter-regional transmission

15. National Load Despatch Centre

16. Constitution of Regional Load Despatch Centre

17. Functions of Regional Load Despatch Centre

18. Compliance of directions

19. Intra-State transmission

20. Transmission within a State

21. Constitution of State Load Despatch Centres

22. Functions of State Load Despatch Centres

23. Compliance of directions

24. Grid Standards

25. Intervening transmission facilities

26. Charges for intervening transmission facilities

27. Directions by Appropriate Government

28. Central Transmission Utility and functions

29. State Transmission Utility and functions

30. Duties of transmission licensees

31. Other business of transmission licensee

PART-VI: This deals with provisions of distribution of electricity with respect to distribution licensee32. Duties of distribution licensee and open access

33. Duty to supply on request

34. Exceptions from duty to supply electricity

35. Power to recover charges

36. Power to recover expenditure

37. Power to require security

38. Additional terms of supply

39. Agreements with respect to supply or purchase of electricity

40. The Electricity Supply Code

41. Other businesses of distribution licensees

42. Provisions with respect to electricity trader

43. Control of transmission and use of electricity

44. Use, etc. of meters

45. Disconnection of supply in default of payment

46. Standards of performance of licensee

47. Different standards of performance by licensee

48. Information with respect to levels of performance

49. Market domination

PART-VII: This chapter deals about terms and conditions for the determination of tariff.50. Tariff regulations

51. Determination of tariff

52. Determination of tariff by bidding process

53. Procedure for tariff order

54. Provision of subsidy by State Government

55. Development of market

PART-VIII: This part deals work of licensees includes provision as to opening up of streets, railways etc., overhead lines, notice to telegraph authority.56. Provision as to opening up of streets, railways, etc

57. Overhead lines

58. Notice to telegraph authority

PART-IX: This part deals about constitution and functions of Central Electricity Authority

PART-X: This part deals about Regulatory Commissions and its constitution, power and functions of central commission

PART-XI: This part deals about appellate tribunal for electricity

PART XII: This part deals about investigation, enforcement of assessment for electricity consumed by consumer by State Govt. or board or licensee.

PART XIII: This part deals about reorganization of Electricity Board

PART XIV: This part deals mainly about offences and penalties for misusing/theft of electricity.

PART XV: This part deals constitution of special courts for the purpose of providing speedy trial of offences referred to in sections 135 to 139

PART XVI: This part deals mainly resolution of dispute by arbitration under this Act.

PART XVII: This part deals mainly protection of railways, highways, airports and canals, docks, wharfs and piers, protection of telegraphic, telephonic and electric signalling lines, amendment of sections 40 and 41 of Act 1 of 1894

PART XVIII: This part mainly deals miscellaneous matter includes following:59. Coordination Forum

60. Exemption of electric lines or electrical plants from attachment in certain cases

61. Protection of action taken in good faith

62. Members, officers, etc., of Appellate Tribunal, Appropriate Commission to be public servants

63. Recovery of penalty payable under this Act

64. Services of notices, orders or documents

65. Transitional provisions

66. Inconsistency in laws

67. Act to have overriding effect

68. Provisions of this Act to be in addition to and not in derogation of other laws

69. Power of Central Government to make rules

70. Powers of Authority to make regulations

71. Powers of Central Commission to make regulations

72. Rules and regulations to be laid before Parliament

73. Powers of State Governments to make rules

74. Powers of State Commissions to make regulations

75. Rules and regulations to be laid before State Legislature

76. Power to remove difficulties

77. Provisions of Act not to apply in certain cases

78. Repeal and saving

The Electricity Act, 2003 does not explicitly deal with environmental/social implications of activities related to power transmission/distribution project other than, section 68 (5 & 6) and or Section 67 of the Electricity Act 2003 which provides the basis for compensation to be paid for any damages.

However, the applicable legal provisions under Section 68 of EA, 2003 Prior approval of the Govt. of Manipur (GoMan) u/s 68(1) of EA, 2003 is a mandatory requirement to undertake any new transmission/Sub-transmission project (33kV& above)

MSPCL is a deemed licensee after corporatization & takes authorization U/Section 164 of EA, 2003 from GoMan.

3.Process Flow Chart

&

Organisational Flow Chart

3.1 EXCUTIVE SUMMARY :-

My Project work is study offinancial performance of the company and all working procedure on day to day basis. Therefore I came in Account &Finance Department and study following things.

1) Firstly I learn here overall knowledge about how any steel industry works and how all the plants are managed.

2) For acquiring over all knowledge of production process we visited all plants.

3) After that we visited all commercial department like Purchase ,Store ,Marketing ,Personnel, all thedepartment is related to each other and A/C&Finance department is like the blood of the body means all department financial activities are accounted for,controlled and feedback is given to concerned department and to the higher management by this department.

4) I have conducted my project work in the following sequences:-

I. Review of organization chart

II. Visits of the plant and acquire knowledge of production procedure.

III. Visit of all commercial departments we have knowledge of working Procedurechecking ofdocuments in respective departments.

IV. Study of Balance Sheet and Profit&Loss a/c and financial analysis.

V. Discussion of projectreport.

1. ORGANIZATION CHART- The organization chart provided by the companyExpress the organizational structure- departments and authorityLevels in the company.I have reviewed the organization chart and actualWorking system during the course of checking of documents, transactionIn the commercial departments I found that authority levels as depicted in The organization chart is all most in practice The organization chart of the Company refer annexure 12. VISIT IN ALL THE PLANTS-In factory to have brief knowledge of mechanical and production process and consumption of major row materials .the major row material consumptions and finished goods produce:-

Raw material Finished Goods

1. Iron Ore

Sponge Iron

2. Coal

3. Dolomite,

4. Sponge Iron

5. Pig Iron

Billets

6. End, Cuts,

7. Skull,

8. M.S. Scrap

9. Billets

Wire rod .TMT

10. Oxygen

11. Coal Power for captive consumption

Process chart is executed in annexure 2

3. VISIT IN ALL COMMERCIAL DEPARTMENT: -commercial activities are carried out mainly by accounts, purchase, Sales, personnel and store departments in brief their working procedure are stated below

a) PURCHASE DEPARTMENT:-

The department is headed by G.M. assisted by AGM , Manager and executive. Maximum, minimum level items indents are received from store department. On the basis of indents received from user department materials are procured from approved supplier on lowest quotation accept( for proprietary items) basis where orders are noted on lowest quotation basis, proper reason are stated on comparative chart and sanction is obtained from competent authority before placing the orders .Activity chart of the department is stated in annexure 3. SHAPE \* MERGEFORMAT

a) STORE DEPARTMENT:-The department is headed by senior manager assisted by AGM and Executive.The materials are received by road transportation. At the time of entry in factory gates it is verified by security department that dispatches are against a valid purchase order otherwise entry of materials are not allowed .On party challan/bill accompanying the materials gate entry no. is marked on the back side of the documents. There after the materials are send for weighment. A weighment ticket is issued by weighment dept. The ticket contains details of truck no, gross weight supplier name. The ticket is handed over to the truck driver. The driver hands over the documents to receipts section of store department.Receipts section examines the validity of documents.

After examining the validity of documents, Laboratory dept isinformed for taking samples of material -raw material, chemicals etc. where quality Quantity can be ascertained by lab test and bulk/ heavy material are unloaded at consumption site. Other materials are unloaded in store and units of material as per challan are verified in store dept. There after authorized person inspects the material- matches with drawings, prescribed norms by govt. agencies if any eg. IBR certificates etc .Discrepancies is stated on challan /bill and supplier is informed in writing.

GRN (goods receipt note) is prepared of accepted quantities and material are storedin store dept. at there decided place. Materials are issued to user dept. on the basis written requisition. The activity chart stated in annexure 4.

Specific Function of Stores Department

Receiving ,inspecting and recording of raw material

Arranging for QC of raw material

Positioning and Storage

Issuing and recording

Receiving and dispatching of finished goods

b) PERSONNEL DEPARTMENT:-The Major function of the department recruitment of employees ,employees dailyattendance recording ,preparation of monthly pay rolls and arrangement of training for employees to update knowledge and liasioning with Govt. labour department. On the basis of HODs recommendation and after consultation with and approval of the president employees increment, promotions are finalized medical benefit, fringe benefit also the control of this department. .

There is strict control over strength of the employee .Authority for any permanent recruitment is with unit head.

c) MARKETING & SALES DEPARTMENT:-Marketing and sales are combine function in the company. The main function of the marketing department is to develop customer sales, dispatchesthe finished products andit is very important function of any organization because it is source of income.

In case of this company, products of the company have well reputation in respect of quality and the company easily procures the orders. Prices are negotiated by the dept. but finally approved by the unit head.

MODE OF SALES :-

(1) Direct to agents

(2) Parties through agent

(3) Other customer

Other parties order is procured by agents for which they are paid commission and the agents are responsible for recovery of amount of sales to third parties.THERE ARE TWO TYPES OF AGENT

(1) Secured agent-means they deposit the money as security money.

(2)Unsecured agent- this type of agent make payment when orders are placed.

PRICE- There are no fix prices for the day or any period .Prices are negotiated by marketing dept. as and when offers are received from customer prices is finally approved by the he president .

PAYMENT TERMS: 1) Secured Agent - Credit sales up to security deposit amount and there after advance payment or special sanction of the president for credit sale.

2) None secured agent and their customer advance payment

3) Secured agent party -7 days credit

4) Other direct customer-advance payment/irrevocable later of credit Annexure-5

SPECIFIED PROJECT CATEGORIES AS LISTED IN SCHEDULE OF ENVIRONMENT IMPACT ASSESSMENT NOTIFICATION, 2006 (MOEF) REQUIRE PRIOR ENVIRONMENTAL CLEARANCEProject or ActivityCategory with threshold limitConditions if any

AB

1Mining, extraction of natural resources and power generation (for a specified production capacity)

(1)(2)(3)(4)(5)

1

1(a) Mining of minerals ( 50 ha. of mining lease area

Asbestos mining irrespective of mining area

Documents

project report Ravindra nath Rajput (Repaired).doc