ROURKELA STEEL PLANT
ROURKELA
INSTALLATION OF 125 TPD SULPHURIC ACID PLANT
FEASIBILITY REPORT
STEEL AUTHORITY OF INDIA LTD CENTRE FOR ENGINEERING AND TECHNOLOGY
RANCHI
NOVEMBER 2010 CET/05/RN/3173/FR/CC/01/R=1
RSP CONTENTS CET/05/RN/3173/FR/CC/01 R=1
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CONTENTS - CHAPTERS
Chapter Description Page no.
1. Summary 1.1 - 1.2
2. Background 2.1 - 2.3
3. Selection of Alternatives 3.1 - 3.2
4. Project Description 4.1 - 4.15
5. Project Implementation 5.1
6. Financial Analysis 6.1 - 6.3
7. Recommendation 7.1
ANNEXURES
DRAWINGS
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CONTENTS - ANNEXURES
Annexure no. Description No. of pages
2.7-1 Copy of assignment letter from RSP 1
4.14-1 A broad list of equipment 3
5.1-1 Implementation Schedule 2
6.1.1-1 Summary of Capital Cost Estimate 1
6.1.1-2 Detailed Capital cost estimate 3
6.1.1-3 Basis of Capital Cost Estimate 1
6.1.1-4 Volume of work for Capital Cost Estimate
1
6.5.1-1 Calculation of works cost of production of Sulphuric acid
1
6.6.3-1 Profit loss statement, Cash flow statement and IRR calculation
1
6.6.4-1 Techno-economic Indices 1
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CONTENTS - DRAWINGS
Sl. no. Drawing no. Description
1. CET RN 3173 CC1 00 001 R=0 Typical Process Flow Diagram of DCDA Sulphuric Acid Plant
2. CET RN 3173 CC2 00 001 R=0 General Layout of proposed DCDA Acid Plant
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1. SUMMARY
1.1. The removal of ammonia from coke oven gas is a technological
necessity, for which sulphuric acid is an essential input. Ammonia is
absorbed in saturators containing a bath of dilute sulphuric acid.
1.2. At RSP, the bulk requirement of sulphuric acid is in the Ammonium
Sulphate Plant for the removal of ammonia from coke oven gas followed
by CRM for pickling of hot rolled sheets and for water treatment in
Power Plant.
1.3. Existing Sulphuric Acid Plant of 60 tpd capacity was commissioned in
August 1990 to cater to the needs of Coal Chemical Department, CRM
(Cold Rolling Mill) and TPP (Thermal Power Plant).
1.4. In 2004-2005, MECON was requested by RSP to study the condition of
all units of CCD (Coal Chemical Department) including Acid Plant. The
Study Report indicated that the condition of existing 60 tpd has
deteriorated considerably on account of ageing and corrosion requiring
urgent replacement.
1.5. MECON in their report had suggested installing a new plant of 75 tpd
capacity adjacent to the existing plant and subsequently phasing out the
existing plant. This proposal was not recommended by the Project
Appraisal Group as techno-economics was not favourable.
1.6. Subsequently, after the expansion plan of RSP, a new 7 m tall battery
was envisaged along with a new CCD complex. In order to cater to the
needs of the existing CCD, new CCD and pickling lines of Cold Rolling
Mill, the requirement of sulphuric acid will be 125 tpd. It is therefore,
envisaged to install a new sulphuric acid plant of higher capacity i.e. 125
tpd.
1.7. The proposed plant will be located in the area shown in the General
Layout drawing (Drg. No. CET RN 3173 CC2 00 001 R=0) attached
with this report. The existing sulphur godown and acid storage tanks will
be used for the proposed plant. However, additional sulphur storage of 7
days capacity, melting section with sulphur melter and filtration facilities
including other plant and equipment will be provided.
1.8. After the commissioning of the new plant, the existing plant will be
phased out, dismantled and disposed off.
1.9. The requirement of manpower will be met by re-deployment of
manpower available from the existing acid plant. No additional
manpower is envisaged.
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1.10. The proposed project will be executed on a “turnkey basis” through two
different packages as follows:
Package 1- Installation of 125 tpd Sulphuric Acid Plant (Main Package)
Package 2- Soil Investigation
1.11. The project will be implemented in 16 months from date of placement of
order as shown in ANNEXURE-5.2-1.
1.12. The installation of the proposed sulphuric acid plant will involve a capital
investment of Rs. 32.10 crores (Rs. 29.80 crores net of Cenvat).
1.13. Techno-economic indices are mentioned below:
Indices Pre-Tax Post-Tax
IRR 31.33% 25.43%
NPV (@10%) Rs.45.06
Crores
Rs. 28.74
Crores
1.14. The project for “Installation of 125 tpd Sulphuric Acid Plant at RSP” is
recommended for consideration.
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2. BACKGROUND
2.1. During carbonisation of coal in the coke oven batteries, coke oven gas
containing various coal chemicals such as tar, ammonia, benzol
hydrocarbons and other components is generated. The coke oven gas is
cleaned in the CCD (Coal Chemical Department) where these coal
chemicals are removed from the gas. The clean coke oven gas is then
sent to various consumer departments of the steel plant as fuel.
2.2. Ammonia is present to the extent of approx. 8 gm/ Nm3 in the coke oven
gas generated from the batteries. Removal of ammonia from the coke
oven gas is a technological necessity, as presence of ammonia in the gas
leads to severe corrosion in gas pipelines and heavy sludging during
benzol scrubbing process. At RSP, ammonia from coke oven gas is
removed in the Spray Saturators where acid is sprayed over coke oven
gas to produce ammonium sulphate. This is sold as fertiliser in the brand
name “RAJA KHAD”. The bulk requirement of sulphuric acid is in the
Ammonium Sulphate Plant for the removal of ammonia from coke oven
gas. It is also used for pickling of hot rolled sheets and for water
treatment in Power Plant.
2.3. Existing Sulphuric Acid Plant of 60 tpd capacity was commissioned in
August 1990 to cater to the needs of Coal Chemical Department, CRM
(Cold Rolling Mill) and TPP (Thermal Power Plant).
2.4. In 2004-2005, MECON was requested by RSP to study the condition of
all units of CCD including Acid Plant. The Study Report indicated that
the condition of existing 60 tpd Acid Plant has deteriorated considerably
on account of ageing and corrosion requiring urgent replacement.
MECON in their report had suggested installing a new plant of 75 tpd
capacity adjacent to the existing plant and subsequently phasing out the
existing plant. This proposal was not recommended by the Project
Appraisal Group as techno-economics was not favourable due to the
following reasons:
• Requirement of Sulphuric acid can be met by purchase of acid from
market.
• Operation of acid plant causes environmental pollution.
• Pickling lines in CRM to operate with HCl instead of H2SO4 after
modernization.
• RSP expansion and Coke Oven Battery No. 6, had not been envisaged
at the time of project appraisal (RSP’s expansion plan was approved
on 21st May 2007)
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2.5. The oven pushing over the years has gone up from a level of 268 per day
in 1990-1991 to 350 in 2009-10. With commissioning of Coke Oven
Battery No. 6, additional coal will be carbonised and higher quantity of
acid would be required for cleaning the gas. After introduction of On-
main charging facilities and zero leak doors in rebuilt batteries, the gas
yield has gone up from a level of 286 Nm3/h in 1990-91 to 320 Nm
3/hr in
2009-10. The proposal of pickling with HCl instead of Sulphuric acid has
been dropped due to which the requirement of sulphuric acid will
increase considerably. The total requirement of Sulphuric acid will be
125 tpd.
2.6. Design Basis of Plant Capacity:
As per MECON’s CPFR for 4.2 MTPA expansion plan of RSP:
Avg. pushing of 330/day from the existing batteries has been considered,
based on rebuilding, hot repairs and ovens under regular repairs.
Dry coal requirement for existing batteries = 1927200 T/year
Dry coal requirement for 1 no. of 7 m tall battery = 787370 T/year
Total dry coal requirement = 2714570 T/year
= 7437 T/day
Ammonium Sulphate yield = 1.1% of dry coal
charge.
Hence, acid requirement for Ammonium sulphate plant @0.8 T per ton
of Ammonium Sulphate =7437 x 1.1/100 x 0.8
=65.5 T/day
Acid requirement for CRM =27 T/day
Acid requirement for Power Plant = 2 T/day
Total acid required (with 330 working days) =94.5x365/330T /day
= 105 T/day
Capacity of acid plant (Considering 90% efficiency) =116 T/day
Based on the above calculation for acid requirement, the plant will be
designed to produce 125 TPD of sulphuric acid (expressed as 100%
H2SO4) in the form of 98.5% H2SO4.
2.7. The existing acid plant has outlived its life and pollution level is also
high. In view of the deteriorating condition of various equipments of the
existing acid plant and increased requirement of acid as stated above,
RSP desires to install a new sulphuric acid plant of higher capacity. RSP
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has requested CET to prepare Feasibility Report / Tender Specification
for the same vide letter no. AMR-M&SC/Consultancy/15/238-43 Dt.
06.03.2010 (Copy placed at ANNEXURE- 2.7-1).
2.8. Accordingly, Feasibility Report, R=0 was issued in June’10.
Subsequently, this FR, R=1 has been prepared for updating of capital cost
estimate and revision of techno-economic calculation.
2.9. The help received from concerned engineers of RSP for preparation of
this report is gratefully acknowledged.
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3. SELECTION OF ALTERNATIVES
3.1 The following alternatives have been considered:
Alternative-I Purchasing entire requirement of Sulphuric acid from
open market.
Alternative-II Installation of a new 125 tpd Sulphuric acid plant.
3.1.1 Alternative-I Purchasing entire requirement of Sulphuric acid
from open market.
Merits
• Price of acid in the open market is fluctuating and sometimes it is
available at a lower price than that produced from existing acid
plant.
• No acid plant is to be operated within company’s premises and
therefore pollution w.r.t to sulphur dioxide and acid fumes can be
totally avoided.
Demerits
• Sulphuric Acid is an essential input for continuous removal of
ammonia from the coke oven gas. Dependence on outside supplier
will at times jeopardize operation of the plant as it is unreliable.
• Availability of 125 tonnes of acid per day from the market on
consistent basis may be a regular constraint.
• In the past RSP has faced problem in purchase and receipt of acid
from outside suppliers by road tankers. Further, transportation of acid
through tankers is also difficult as reliable Transporters with fleet of
tankers are not available at Rourkela.
• The reliability of consistent supply of 125 tpd Sulphuric acid from
outside source is also questionable.
3.1.2 Alternative-II Installation of a new 125 tpd Sulphuric Acid Plant
Merits
• Regular and consistent supply of 125 tpd sulphuric acid will be
ensured.
• Captive acid plant will ensure uninterrupted supply of acid for
smooth operation of the plant.
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Demerits
• Capital investment is required
3.2 Conclusion
Based upon merits and demerits of both the alternatives, Alternative –II,
i.e. installation of a new 125 tpd Sulphuric acid plant is selected.
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4.0 PROJECT DESCRIPTION
The aim of the project is installation of 125 tpd DCDA Sulphuric Acid
Plant and is to be located in the vicinity of the existing plant.
4.1 Double conversion Double absorption Process for manufacturing
sulphuric acid, commonly known as DCDA process, is described below
step wise. A typical process flow diagram is shown in Drg. No. CET
RN 3173 CC1 00 001 R=0
4.1.1 Sulphur Melting
The existing sulphur storage capacity is 1200 Tonnes. A covered sulphur
shed of 7 day’s capacity (about 300 Tonnes) will be provided in the
proposed site for new acid plant as shown in Drg. No. CET RN 3173
CC2 00 001 R=0. Raw sulphur will be transported from existing
godown to new 7 day’s storage shed by pay loader/tripper truck. Sulphur
from this storage will be charged to a hopper placed above the sulphur
melter tank. Sulphur will be fed from the hopper to the melter by a
vibratory push feeder.
The sulphur melter is a steel vessel with three SS steam coils dipped in it
and will be provided with a slow moving agitator. Process steam (6-8
Kg/ cm2) is passed through the steam coils which help in the melting of
sulphur. The agitator acts as a clarifier where ash and other unwanted
heavy substances settle at the bottom and molten sulphur overflows into a
pre coat pit/dirty sulphur pit and subsequently to pure sulphur pit via
filter. The molten sulphur from the storage pit is pumped to the sulphur
burner, where it is oxidised.
4.1.2 Sulphur burner and hot gas filter
Molten sulphur is sprayed through a nozzle from the top of sulphur
burner, where it is oxidised with dry air. Sulphur burns in presence of air
forming sulphur dioxide gas of about 9% concentration. The products of
combustion (containing sulphur dioxide) are cooled in the Waste Heat
Boiler and passed through hot gas filter (Cartridge Filter), where traces of
impurities is removed.
4.1.3 Converter
The sulphur dioxide gas thus produced in the sulphur burner is
converted into sulphur trioxide in a converter containing four beds of
vanadium pentoxide catalyst.
The conversion of sulphur dioxide to sulphur trioxide is an exothermic
process:
2SO2 +O2 = 2SO3
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At each catalytic bed such a reaction is occurring, thereby evolving heat,
and so the gases leaving each catalyst bed are cooled before being fed
into the next catalyst bed. The gases leaving the first catalyst bed are
cooled in the waste heat boiler. Similarly gases coming out from the
second and third catalyst bed are cooled in two different heat exchangers
as the heat evolved in the second and third catalyst bed are much less as
compared to that in the first catalyst bed. The gases leaving the third
catalyst bed are first cooled in Economizers and then fed at the bottom of
the intermediate absorption tower for absorption of sulphur trioxide.
Sulphuric Acid, with strength of 98.5% sulphuric acid is fed from the top
of the tower on a counter-current principle. The gases, which are free of
sulphur trioxide from the intermediate absorption tower, are heated to the
desired temperature before being fed to the fourth catalyst bed of the
converter. The gases leaving the fourth catalyst bed are cooled in Cold
Heat-Exchangers before entering the final absorption tower. In this it is
possible to achieve conversion of sulphur dioxide to sulphur trioxide up
to 99.8% (min).
4.1.4 Absorption process
The gases coming out of the fourth catalyst bed of the converter pass
through Cold Heat-Exchangers before entering the final absorption
tower. In the final absorption tower, Sulphuric acid of 98.5% strength is
sprayed from the top and gases rise from the bottom. At this stage 99.8 %
(min) of sulphur trioxide is absorbed and the rest of the gases pass
through the chimney.
4.1.5 Acid production
The sulphuric acid will be cooled in acid coolers (Plate type heat
exchanger) and is circulated in the Drying tower, Intermediate absorption
tower and Final absorption tower. The product sulphuric acid is tapped
from the outlet of the acid coolers and stored in the acid storage tanks.
4.1.6 Energy Aspect
A modern sulphuric acid plant can also be treated as an energy plant
since all reactions taking place are exothermic reactions. The efficient
recovery of heat and its proper utilization is vital for economic return
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from plant. The surplus heat generated is equivalent to 1.1 tonne of
saturated steam at 20-22 kg/cm2 per tonne of 100% Sulphuric acid
produced and steam hooked to plant grid.
4.2 Pollution Control
4.2.1 Air Pollution
The emission regulation of Central Pollution Control Board provides the
following emission limits in air for sulphuric acid plants
Sulphur dioxide - 2 Kg/ tonne of 100% acid produced.
Acid mist /Sulphur trioxide -70 mg/ Nm3
The emission from the proposed plant shall be well below the above
limits.
4.2.2 Scrubbing of start up gases
During start up of the plant, when sulphur dioxide emissions are high, the
stack gases will be passed through the tail gas scrubber. The gas is
scrubbed with caustic soda in the scrubber before letting out into the
atmosphere. This process shall bring down the sulphur dioxide content in
the stack gases, during start up, within the permissible limits.
The mist eliminators help in reducing the acid mist content below the
prescribed norms. The scrubbing units shall have on-line pH meters with
auto recording facility. The height of the stack shall be as per CPCB
norm.
4.2.3 Water pollution
Water effluents from the plant, which are let out into the sewerage
system, shall be within the pollution norms for water as per IS-2490. For
this purpose, the acid spillage or leakage from the plant and storage area
shall be washed, collected in a neutralization pit and neutralized before
draining into sewerage system. pH meters with the provision of alarm
system will be provided to combat any leakage of acid from acid coolers
into cooling water. Limestone or soda ash may be used for neutralization.
4.3 Basis of Design
4.3.1 Plant Capacity-125 TPD
4.3.2 Flexibility of plant operation - 60 to 110% of the rated capacity.
4.3.3 On stream factor - 330 days per year.
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4.3.4 Raw Material – Sulphur
4.3.4.1 Quality
Sulphur content – 99.5%
Moisture – 0.5% (max)
Ash – 0.2%(max)
Acidity as H2SO4 – 0.02-0.03%(max)
Organic compound – 0.2%(max)
4.3.4.2 Consumption- 330 Kg/ 1000Kg of 100% H2SO4
4.3.5 Conversion efficiency- 99.8% (min)
4.3.6 Product Specification:
Sulphuric Acid will confirm to Technical grade of IS 266:1993
(Reaffirmed 2003).
4.3.7 Utility Consumption
The indicative consumption of utilities will be as follows:
a) Power - 63 kW/t of product
b) Make up Cooling Water - 2.0 m3/t of product
c) Boiler feed water - 1.1 m3/t of product
d) Process water - 0.2 m3/t of product
e) Nitrogen(for instrument) - 30 m3/ hr
4.4 Site Condition
The proposed new Acid Plant will be installed adjacent to existing Acid
Plant as shown in the Drg. No. CET RN 3173 CC 2 00 001 R=0.
The location of the proposed acid plant has been selected with a view to
maximize the use of the existing facilities like sulphur storage and 5 nos.
of acid storage tanks having capacity of 375 m3 each.
The existing melting section will be shut down and the space will be
utilised for sulphur storage. A covered sulphur shed of 7 day’s capacity
(about 300 Tonnes) will be provided in the proposed site for new acid
plant.
After the commissioning of the new plant, existing plant now in
operation will be phased out, dismantled and disposed off.
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4.5 Electrics
4.5.1 Power Requirement & Distribution
The estimated power requirement of the proposed acid plant is indicated
below:
Voltage Level Connected Load Maximum demand
LT 350 kW 200
4.5.1.1 LT Power will be tapped from BP-2 sub-station by extending the
extreme left side of the board by two nos. of 1000Amp ACBs cubicles
on by. Since, no HT feeder is available, rating of the Blower motors have
to be kept below 180 kW and fed from LT power through soft starter.
For illumination and repair network, feeders from existing LDB/PDB
will be used.
4.5.1.2 Major electrical facilities envisaged in the proposed acid plant are as
follows:
• One no. LT MCC for the Blower motor, pumps, and other drives,
illumination, cabling, illumination etc. of the system.
4.5.2 Location of Electrical Equipment/Facilities
4.5.2.1 The proposed MCC is proposed to be located in a new MCC room in the
area allotted for new Sulphuric acid Plant.
It is envisaged to locate Control Desks and the Electrical HMI in an air-
conditioned Control room.
4.5.3 Acid Plant Operation & Control
4.5.3.1 Complete Control, monitoring and recording of entire Sulphuric acid
Plant operation is envisaged to be done through a PC from a single
location (Control Room) to achieve best operating conditions. A control
Desk has also been envisaged in the Control Room. For local operation
of motors Local Control Station has been considered.
4.5.3.2 All the LT motors will be AC Squirrel Cage induction motors having
class F insulation with temperature rise limited to class B and suitably
de-rated for the ambient of 55oC. All motors above 90kW will have soft
starters. All motors shall be totally enclosed fan cooled types.
4.5.3.3 The control voltage for LT system will be at 220V, AC.
4.5.3.4 Control of motors will be done from the Control desk/ Local Control
Station/HMI. All drives will have local control stations mounted near the
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respective drives and will have start/ stop push buttons near the
mechanism. All the Local Control Stations will have ammeters mounted
in it.
4.5.4 LT cables
4.5.4.1 LT Power cables will be 1.1kV grade XLPE insulated and PVC sheathed
Aluminium conductor cable. Control cable shall be 1.1 kV grade, XLPE
insulated and PVC sheathed copper conductor cables.
4.5.4.2 For cable laying, buried direct in ground, routing through existing tunnel,
underground cable trenches and MS fabricated cable trays in over head
structures/ galleries have been envisaged.
4.5.5 Illumination System
4.5.5.1 Illumination is to be provided with energy efficient light fittings for
Sulphuric acid area and related peripheral areas of the proposed system.
Illumination fixtures will be rated for operation at 240V AC, single
phase, 50Hz supply. Necessary Power for Illumination shall be tapped
from existing LDBs.
4.5.6 Earthing & Lightning Protection
4.5.6.1 Earthing and lightning protection is also envisaged for proposed
Sulphuric Acid Plant area as per requirement.
4.6 Instrumentation
The proposed plant will be provided with latest sophisticated Control &
Instrumentation (C&I) system adequate for efficient operation as well as
monitoring of the plant from a centralized control room. Remote
operation, monitoring and intelligent control from central control room
has been envisaged. State of the art electronic C&I system have been
considered comprising of Programmable Logic Controller,
pneumatic/electric actuated control valves, latest generation sensors,
smart transmitters, analyzers, switches and local gauges. The acid plant
will also be provided with necessary special instrumentation system like
SO2, H2SO4, pH analyzers, etc. All instrumentation signals to plant will
be suitably protected through zenner barrier for hazardous application.
The proposed instrumentation and control system will be based on
hierarchical control structure with direct process control functions and
process supervision centralised/distributed at different levels as per
process requirement and PLC based system centralised automation
system will be installed at the control room of Sulphuric Acid Plant.
The following levels will form the hierarchical control system:
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LEVEL-0: Latest generation field instrumentation system.
LEVEL-1: Latest generation PLC based automation system.
Major control and measurement parameters considered are as per the
following:
4.6.1 Major control & measurement parameters
(1) Sulphur Melter steam pressure, temperature & flow, molten sulphur
level.
(2) Differential pressure across sulphur Filter.
(3) Pure molten sulphur pressure, temperature, & flow to burner.
(4) Sulphur Burner temperature.
(5) Blower discharge pressure & bearing temperature.
(6) Boiler Drum pressure, temperature, & level.
(7) Deaerator pressure, temperature & level.
(8) Economiser pressure for both feed water and gas.
(9) Boiler feed water pressure, temperature & flow.
(10) Converter differential pressure & temperature at different stages.
(11) Drying Tower pressure, temperature & level.
(12) pH measurement in water outlet of Plate type heat exchanger.
(13) pH, conductivity of DM water.
(14) Process acid tank level.
(15) Scrubbing Tower pressure, temperature & pH.
(16) Absorption Towers Temperature.
(17) SO3 + Acid mist at stack.
(18) Level switches for all tanks, vessels for annunciation & interlocking.
(19) Sulphuric acid flow to storage tank.
(20) Sulphuric acid storage tank level.
(21) Pressure, flow measurement at plant take off points of all utilities.
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4.6.2 Equipment list
i) Field instruments comprising of local gauges, flow
elements, temperature sensors, smart transmitters, switch /
signalizer, control valves, actuators, analyzers, air drying
system (if nitrogen not available), etc.
1 Lot
ii) Control room instruments comprising of PLC, HMI,
Engineering Stations both for instrumentation and electrical
systems, PLC panel, marshalling panels, etc.
1 Lot
iii) Power and control / signal cables, cable laying corrosion
proof accessories like trays, G.I. protection pipes,
supporting structures, clamps etc.
1 Lot
iv) Corrosion proof local instrument panels, transmitter
cubicles, junction boxes etc.
1 Lot
v) Parallel redundant uninterrupted power supply, power
supply and distribution equipment and electrical
accessories like isolation transformer / CVT, regulated DC
power supply units for transmitters, circuit breaker, relays,
auxiliary contactors etc.
1 Lot
vi) SS impulse pipes, conduits, isolating valves, erection
hardware and non stand equipment.
1 Lot
vii) FDA system Lot
viii)Extension of Telecommunication system Lot
4.6.3 Fire Detection System
Microprocessor based intelligent addressable type automatic Fire
detection and audio-visual alarm system shall be provided for early
warning in case of smoke, heat and/or fire in all fire sensitive locations
so that same can be put off in time. Areas to be covered under such
system shall include instrumentation control rooms, electrical rooms,
cable galleries, false floors, false ceilings, junction houses etc. Fire alarm
system shall include multi-sensors (photoelectric, heat, smoke) type
detectors, fire alarm panel, hooters, call points, response indicators,
FRLS cables, etc. The system shall be UL listed except for response
indicators and hooters.
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4.7 Water Supply
The existing drinking water point will be used and will be suitably
relocated
One point each will be provided near sulphur furnace area, melting
section and storage area.
4.8 Utilities & Services
Following utilities and services will be required for the sulphuric acid
plant:
1) Boiler Feed water
2) Coke Oven(CO) gas
3) Industrial water
4) Steam
5) Nitrogen
4.8.1.1 Boiler Feed Water
The proposed plant will require boiler feed water for generation of steam
at the rate of approx 140 t/day for the boiler units. The requirement will
be met from the new soft water plant of capacity 140t/day and will be
installed as part of sulphuric acid plant.
4.8.1.2 Coke Oven Gas
The CO gas will be required for heating of the plant and equipment
during start-up. DN 100 CO gas line will be tapped from the existing
lines, which is available at a pressure of 250-300mmWC and having
calorific value 4200 kcal/Nm3 at a distance of about 100m from the
proposed plant.
4.8.1.3 Industrial Water
The industrial water will be required
• As makeup water in the basin of cooling tower for cooling of acid
in acid coolers
• As process water in Intermediate Absorption Tower and Final
Absorption Tower
• As raw water for soft water plant
• As cooling water in sample cooler of WHB circuit
• As raw water in scrubbing tower and caustic soda tank
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DN 250 will be tapped from the existing lines available at a pressure of
2.0-3.0 kg/cm2 at a distance of about 100m from the proposed plant.
4.8.1.4 Steam
The LP steam will be used for steam jacketing and insulation of sulphur
lines, nozzles, valves, pumps, sulphur filter, sulphur tank, pre coat tank.
Also steam coils will be used for melting of sulphur. The steam pressure
will be reduced by providing PRDU to suit the process requirement.
DN100 will be tapped from the existing lines available at a pressure of
11 kg/cm2 and temperature 300
0C at a distance of 100 m away from the
proposed plant.
4.8.1.5 Nitrogen
Nitrogen will be used for instrumentation purpose after reducing the
pressure.DN50 nitrogen line will be tapped from the existing DN150
lines having pressure 11 kg/cm2 at a distance of about 250 metres away
from the proposed plant.
4.8.2 The following utilities generated at the plant will be provided at the Take
Over Point (T.O.P) for further use in plant.
1) Steam
DCDA plant has exothermic reaction and energy is produced. The
steam generated will be connected to the exiting steam header
available across the road at a distance of about 100m from the
proposed plant.
2) Sulphuric Acid
The sulphuric acid generated will be finally stored in the existing
sulphuric acid tanks. The acid will be pumped from the storage tank
to the new by product plant of Coke Oven Battery 6 at a distance of
about 1 km. For this new pipelines will be laid on existing trestles
and upcoming trestle which is being laid for mother liquor line
coming from CCD of COB6 to existing sulphate plant. 2nos.
(1w+1s) pumps of capacity Q=50m3/h and H=70m will be provided
for this purpose.
4.8.3 Take Over Point (TOP) for Utilities shall be as follows:
Sl.
No.
Utilities and Services T.O.P
1) Coke Oven gas On the trestle on the other side of the
road adjacent to existing sulphuric acid
plant
2) Industrial water On the trestle on the other side of the
road adjacent to existing sulphuric acid
plant
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 4.11
3) Steam On the trestle on the other side of the
road adjacent to existing sulphuric acid
plant
4) Nitrogen On the trestle on the other side of the
road adjacent to existing sulphuric acid
plant
5) Fire Fighting Water Underground line near existing
sulphuric acid plant
6) Generated Steam On the trestle on the other side of the
road adjacent to existing sulphuric acid
plant
7) Sulphuric Acid Existing sulphuric acid tank in the
existing acid plant/CCD of COB6 about
1 km away
4.9 Fire Fighting
The plant will be located in a new area. The following fire fighting
system will be required.
4.9.1 Water based Fire Fighting System
Fire Hydrant consisting of external hydrants for the proposed plant shall be
provided. The main piping diameter shall be DN 150.The stand post type
hydrants shall be provided around the sulphuric acid plant. A terminal
main of DN80 shall be provided to feed one hydrant point. Spacing of
consecutive two external hydrants shall be kept not more than 50m.
4.9.2 Different types of portable fire extinguishers shall be deployed in various
area of the complex as a measure of first-aid fire fighting. Selection &
distribution of Portable extinguishers shall be strictly as per IS: 2190-
1992. The following extinguishers have been considered for rooms as
mentioned below:
Sl.
No.
Unit Type of fire extinguisher
CO2 Type(4.5 Kg) DCP Type (5
Kg)
1. MCC room 15m x 7m x
4m
2 2
2. Control Room 9m x 7m x
4m
2
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 4.12
Passive fire protection is an integral part of a complete fire protection
system and is essential for prevention of spread of fire through cables and
openings in walls or floors. Following measures shall be provided:
• Fire Retardant Coating/Painting of cables
• Sealing of Cable Openings
• Partitions in Cable Channels/tunnels/galleries
4.10 Air Conditioning and Ventilation System
4.10.1 Air Conditioning system is envisaged in the premises as mentioned
below. The type of system and details of the premises are as follows:
Sl.
No.
Premises Size of the
Room
Description of Proposed AC
system
1. Control
Room
9m x 7m x 4m 3 no. 2t window A/C with remote
with minimum 3 star BEE rating
4.10.2 Ventilation System
Ventilation system is envisaged in the premises as mentioned below and
details of the premises are as follows:
4.11 Structural work
4.11.1 The scope of structural steelworks envisaged for installation of acid plant
is as follows-
a) Structural building for sulphur storage.
b) Supporting arrangements for utility pipes along with platforms and
access.
Sl.
No.
Premises Size of the
Room
Description of Proposed
Ventilation system
1. MCC Room 15m x 7m x 4 m Dry pressurized ventilation
using heavy duty tube axial
fans. Q= 8000 m3/h No. of
fan-2
2. Room for
UPS Battery
Bank
3m x 7m x 4 m Dry pressurized ventilation
using heavy duty tube axial
fans. Q= 6500 m3/h No. of
fan-1
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 4.13
4.11.2 Design Considerations
All steel structures will be designed to meet the technological
requirements with due consideration to the existing plant and facilities.
Design of steel structures will be as per IS: 800 -1984. Apart from
technological loads to be supported on steel structures, self weight and
superimposed loads for the design will be according to IS: 875 -1987.
Structures will be designed either for wind or seismic forces as
applicable. Due allowance for impact, vibration & temperature loads
shall be kept.
Material for structural steel will be as per IS: 2062-2006, grade as
applicable.
In general, steel structures will be of welded construction. The welding
procedure will be as per IS: 816 -1969 and IS: 9595-2007.
Fabrication and erection of steel structures will be as per IS: 800-1984.
Tolerances of fabrication will be as per IS: 7215-1974. Tolerance for
erection will be as per IS: 12843 - 1989.
All structures will be given one coat of primer (DFT/coat 40 micron) of
approved make and finishing paint on erected structures will be two
coats of approved make (DFT/coat 25 micron) .
Galvanized corrugated sheets will be as per IS: 277-2003.
4.12 Civil Work
4.12.1 The following civil engineering jobs are envisaged:
4.12.1.1 RCC foundations for the structural steel columns, RCC flooring and brick
cladding for the proposed sulphur go-down
4.12.1.2 RCC Foundations for various equipments, technological structures and
pipeline trestles
4.12.1.3 RCC foundations for new pipeline trestles
4.12.1.4 Fixing of inserts / bolts etc. on the existing sulphur godown structure for
fixing supports to carry new pipelines
4.12.1.5 Construction of RCC framed Maintenance Room, MCC and Control
rooms with cable trenches, as per requirement
4.12.1.6 Proper drainage around the new buildings / facilities and the entire area
4.12.2 Design Considerations
Open foundation has been envisaged for the proposed equipments. Soil
Investigation of the area is proposed to be carried out through a separate
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 4.14
package, outcome of which will be communicated to the Bidders of the
Main Package.
All RCC works including equipment foundations will be of concrete
grade M-25 conforming to IS: 456-2000. Jigs and fixtures shall be used
to fix all anchor bolts and inserts etc., wherever required. The design will
be based on latest IS codes.
Since the execution of the proposed project will take place in and around
the running plant, all possible care shall be taken to ensure no disruption
of production. The movement of men and material for Civil Works will
be coordinated to ensure this objective.
Major activities relating to civil works are earthwork, plain & reinforced
concrete work, flooring, plastering and finishing etc. Following criteria
will be adopted in the design of civil engineering works:
R.C.C : M-25C
(Wherever sulphur environment is
expected, only Sulphate resisting
Portland Cement conforming to
IS:12330-1988 will be used, eg
Foundations and super structures of
Sulphur Melter, Sulphur Burner, Acid
Tanks, Hot gas filter, Converter etc.)
P.C.C : M-10B
Anchor pocket grouting : M-30 D or anti-shrinkage compound/
epoxy
Flooring : RCC laid over boulder soling
Floor finish : As per requirement
Ceiling : As per requirement
Brickwork : 5 Designation bricks
Cement mortar in Brick work : 1:6
Cement plaster for walls : 1:6
Cement plaster for ceiling : 1:4
Doors & windows : Steel / Aluminium, glazed doors &
windows / rolling shutters, as per
requirement
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 4.15
Outside finish for buildings : Cement paint
Inside finish for buildings : White washing
Drainage : Proper drainage will be provided around
the building
4.13 Man Power
The manpower required for the new acid plant will be taken care by
redeployment of manpower available from the existing acid plant.
Maintenance of the new plant will be carried out by the existing
maintenance staff. Hence no additional manpower will be required.
4.14 List of Equipment
A broad list of tentative equipment for acid Plant is mentioned at
ANNEXURE 4.14-1.
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 5.1
5.0 PROJECT IMPLEMENTATION
5.1 The proposed project will be executed on a “turnkey basis” through a
reputed supplier of such plants in two different packages as follows:
Package 1- Installation of 125 tpd Sulphuric Acid Plant (Main Package)
Package 2- Soil Investigation
5.2 An implementation schedule of 16 months from the date of placement of
order has been envisaged as shown in ANNEXURE-5.2-1.
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 6. 1
6.0 FINANCIAL ANALYSIS
6.1 Capital Cost Estimates
6.1.1 The capital cost estimate for the project “Installation of a New
Sulphuric Acid Plant of 125 TPD Capacity” at RSP has been
estimated to be Rs. 29.80 crore net of Cenvat of Rs. 2.30 crore,
inclusive of IDC component of Rs 0.93 crore. The capital cost
estimate does not envisage any foreign exchange component. The
capital cost estimate (summary) is appended at Annexure-6.1.1-1, the
detailed Capital cost estimate at Annexure-6.1.1-2. The Basis of
Capital Cost Estimate and Volume of Work for Capital Cost Estimate
are enclosed at Annexure 6.1.1-3 and Annexure 6.1.1-4 respectively.
6.1.2 The cost estimates are based on budgetary quotations and engineering
estimates based on available in-house information. The base date for
the estimate is 4th Quarter of 2010.
6.1.3 Necessary provisions have been made in the estimates as per the
details given below:
i) Taxes and duties:
1. Excise duty @ 10.3% on basic cost of indigenous equipment
and structures.
2. CST @ 2% on basic cost of indigenous equipment and on
excise duty and structures.
3. WCT/VAT@ 12.5% on 67% of civil work & 30% of
erection work.
4. Service tax @ 10% on erection, 33% of civil work, and
freight & insurance.
5. Entry Tax @ 2% on landed price of supply items
ii) Freight & Insurance charges:
@ 2% of basic cost of indigenous equipment and @9% of the
basic cost of structures.
iii) Erection & commissioning charges:
@ 12% basic cost of indigenous equipment and @20% of
basic cost of structures.
iv) Engineering & construction and foreign supervision:
@ 10 % of basic cost of equipment, structures, civil work &
erection and commissioning charges.
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 6. 2
v) Contingencies: @ 5% on overall basis.
6.2 Mode of Financing
6.2.1 The total capital requirement of the project is proposed to be provided
from debt equity ratio of 1:1. An interest rate @ 10% per annum is
considered for commercial borrowing.
6.3 Phasing of Capital Expenditure
6.3.1 With the project duration of 16 months from Placement of Order, the
phasing of capital expenditure is proposed as indicated below:
(Rs. Crore)
Year Equity Market
Loan
IDC
@10%
Total
1st Year 7.79 7.79 0.39 15.97
2nd year 6.23 6.23 0.55 13.01
Post Comm. 1.56 1.56 3.12
Capital Cost 15.58 15.58 0.93 32.10
Cenvat Credit 2.30
Capital Cost net of
Cenvat 29.80
6.4 Interest During Construction (IDC)
6.4.1 Based on the mode of financing and phasing of capital expenditures
indicated above, the total IDC has been calculated to be Rs. 0.93
crore.
6.5 Cost Benefit Analysis
The techno-economics has been worked out considering the difference
of the purchased price and works cost of production of sulphuric acid.
6.5.1 The works cost of production of Sulphuric Acid in proposed case
works out to be Rs.3471.35/t based on the specific consumption of
various cost elements as indicated by the supplier of the sulphuric acid
plant for some elements as well as cost of some element projected in
the standard cost sheet of RSP for the year 2010-11. The total
manpower envisaged for operation & maintenance of plant is 31, on
the basis of which the annual cost has been worked out. For
computation of cost towards labour, the category-wise average wage
rates (including fringe benefits) have been adopted based on
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 6. 3
prevailing pay scales in SAIL. The details are given at Annexure-
6.5.1-1.
6.5.2 The production of sulphuric acid after installation of new plant will be
35000 t/annum @100 t/day. Considering work cost of production of
sulphuric acid as mentioned at para 6.5.1, the total work cost of
production of sulphuric acid works out to Rs. 12.15 Crore per annum.
Considering the purchase price of sulphuric acid @Rs. 6249.03/t (based
on weighted average purchase price of sulphuric acid from Nov’2009 to
June’2010), the total purchase price is calculated to Rs. 21.87 crore per
annum. Considering the above, Gross Margin works out to be Rs. 9.72
crore.
6.6 Financial Appraisal
6.6.1 Financial analysis has been carried out on the basis of cash flow during
22 years and life of the project is considered 20 years after
commissioning.
6.6.2 The profit loss statement, cash-flow statement and IRR calculations
based on above are given at Annexure-6.6.3-1.
6.6.3 Techno-economic indices are presented at Annexure-6.6.4-1. Some of
the important indices are indicated below:
Indices Pre-Tax Post-Tax
IRR 31.33% 25.43%
NPV (@10%) Rs.45.06
Crore
Rs. 28.74
Crore
RSP CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 7. 1
7. RECOMMENDATION
7.1 The implementation of the proposed Sulphuric Acid Plant with Double
Conversion Double Absorption (DCDA) facility of 125 tpd capacity will
give the following benefits:
• Consistent supply of sulphuric acid for catering to the needs of
Ammonium sulphate plant (existing and new), CRM and Power Plant.
• Reduction in pollution, satisfying the statutory requirement of
Pollution Control Board which is as follows:
Sulphur Dioxide emission - 2 kg/T of 100% acid produced
Acid mist/Sulphur trioxide emission - 70 mg/ Nm3
7.2 The installation of 125 tpd sulphuric acid plant being a technological
necessity, the project is recommended for consideration.
RSP ANNEXURE 4.14-1 CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 1 OF 3
ANNEXURE-4.14-1
BROAD LIST OF TENTATIVE EQUIPMENT
1. Melter Shell
2. Melter Coils
3. Melter Agitator
4. Dirty Sulphur Pumps 2 Nos.
5. Filtered Sulphur Pumps 2 Nos
6. Precoat tank
7. Precoat Pumps 1 No
8. Sulphur Filter 2 No
9. Precoat Agitator 1 No
10. Sulphur Burner 1 No
11. Sulphur Guns 3 Nos
12. Sulphur regulative Valve 2 No.
13. Coke Oven Gas Firing System 1 No.
14. Sulphur Strainer 1 No.
15. Hot Gas Bypass Valve 1No.
16. Waste Heat Boiler I
17. Waste Heat Boiler II
18. Steam Drum
19. Downcomer and Riser
20. Mountings and Valves
21. Hot gas filter
22. Boiler Feed Water Tank
23. Deaerator
24. Converter
25. Converter internal castings
RSP ANNEXURE 4.14-1 CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 2 OF 3
26. Converter sleeves for internals
27. Heat exchanger
28. Economiser I
29. Economiser II
30. Drying Tower
31. Final absorption Tower
32. IPAT
33. Candle Filter
34. Demister Pad
35. Caustic Scrubber
36. Caustic Solution Tank
37. Gratings
38. Spray Nozzles
39. Acid Coolers
40. CI Piping and fittings
41. Agitator for caustic Solution
42. Butterfly Valves
43. Acid Valves
44. Water Valves
45. IBR Valves
46. Air Blower 2 Nos
47. Gas and Air Valves
48. Sulphur Piping Materials
49. Water piping Materials
50. IBR Piping Materials
51. Acid Resistant Bricks
52. Fire Bricks IS 8/IS 6
53. Insulation Bricks
54. Acid Circulation pumps 2 Nos
55.
RSP ANNEXURE 4.14-1 CET/05/RN/3173/FR/CC/01 R=1
INSTALLATION OF SAP PAGE 3 OF 3
56. Acid Transfer Pumps 2 Nos
57. Water Circulation pumps 2 Nos
58. Boiler Feed Water pumps 2 Nos
59. Caustic circulation pumps 2 Nos
60. Hardware
61. Paints
62. Motors
63. MCC
64. Cables
65. Light Fittings
66. Push Button and Ammeters
67. Electrical materials viz. earthing strips, cable tray clamps lugs.
68. Instruments
69. Instrument Panel
70. Instruments material viz compensation cables, wiring copper tubing,
drain pipes, filter clamps etc.
ANNEXURE-6.1.1-3
Rs. Lakh
Sl. SHOP/FACILITY/PACKAGE FC QUANTITY BASIC COSTS (in INR) BASIS OF COSTS ESTIMATES & Remarks
No. adopted Imported Indigenous Imported Indigenous Order value/Engg.estimate/BQ Enclosed
Nos. Weight Unit No. (enclose supporting document Doc.Ref.
t HW SW HW SW like order copy/ Budgt.Qtn. etc.) ***No.
a b c d e f g h i j k l m
A EQUIPMENT:
1 125 TPD Sulphuric Acid Plant LS 1269.00 BQ
2 DN 50 pipe ERW as per IS 1239-
2004Kg 1548 1.08 Engg. Est.
3 DN 50 CS Gate Valve Nos. 2 0.20 Engg. Est.
4 DN 100 PIPE ERW as per IS
1239-2004Kg 1450 1.02 Engg. Est.
5 DN 100 Gate Valve Nos. 3 0.18 Engg. Est.
6 DN 200 PIPE MS Kg 3310 2.32 Engg. Est.
7 DN 200 CI Gate Valve Nos. 2 0.27 Engg. Est.
8 DN 100 CI Gate Valve Nos. 4 0.24 Engg. Est.
9 DN 100 PIPE Seamless A 106 Gr
B Kg 1607 1.61 Engg. Est.
10 DN 100 CS Gate Valve Nos. 4 0.48 Engg. Est.
11 DN 20 steam trap Nos. 2 0.08 Engg. Est.
12 Insulation slag wool density 150
kg/m3m3 5 0.75 Engg. Est.
13 DN 100 PIPE CI Kg 22000 17.60 Engg. Est.
14 DN 150 CI Gate Valve Nos. 2 0.17 Engg. Est.
15 DN 100 CI NRV Nos. 2 0.10 Engg. Est.
16 DN 100 CI Gate Valve Nos. 3 0.18 Engg. Est.
17 Acid pump Q=50m3/h, H=70m Nos. 2 3.60 Engg. Est.
18 DN 100 PIPE Seamless ASTM
A106 Gr B Kg 1607 1.61 Engg. Est.
19 DN 100 CS Gate Valve Nos. 2 0.24 Engg. Est.
20 DN 20 steam trap Nos. 2 0.08 Engg. Est.
21 Insulation slag wool density 150
kg/m3m3 5 0.75 Engg. Est.
22 DN 150 PIPE ERW as per IS
1239-2004Kg 7242 5.07 Engg. Est.
23 DN 150 CI Gate Valve Nos. 2 0.17 Engg. Est.
24 Landing Valve DN 80 Bronze Nos. 5 0.60 Engg. Est.
25 DCP type fire extinguisher 5 kg Nos. 1 0.03 Engg. Est.
26 Co2 type fire extinguisher 4.5 kg Nos. 3 0.18 Engg. Est.
27 Passive fire fighting lot 1 0.50 Engg. Est.
28 2T window air conditioner Nos. 3 1.20 Engg. Est.
29 Heavy duty tube axial fan Q=8000
m3/h, H=25mm WCNos. 2 0.76 Engg. Est.
30 Heavy duty tube axial fan Q=
6500 m3/h, H=25mm WCNos. 1 0.34 Engg. Est.
31 Storage tanks level measurement,
Acid analyser, instrumentation etcLot 1 48.00 Engg. Est.
32 Additional erection hardware Lot 1 4.20 Engg. Est.
33 Fire Detection Alarm System Lot 1 5.00 Engg. Est.
34 Extension of Telecommunication
systemLot 1 3.00 Engg. Est.
35 Cables Lot 1 88.16 Engg. Est.
36 Soft Starter, Illumination of
peripheral area, earthing etc.Lot 1 7.84 Engg. Est.
Total (Equipment) 1466.59
STEEL AUTHORITY OF INDIA LIMITED
ROURKELA STEEL PLANT
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY
BASIS OF CAPITAL COST ESTIMATE
ANNEXURE-6.1.1-4
Base date: 4th Qtr 2010
Sl. SHOP/FACILITY/PACKAGE (Name & / No. )-> Total
No. Item no. Name of the Item unit qty.
a b c d e
A STRUCTURAL
1 New Structure t 65
2 CGS Sheeting 20G sqm 700
B CIVIL WORK
1 Earthwork cum 3000
2 PCC cum 200
3 RCC cum 700
4 R/F t 70
5 Inserts /Bolts t 1
6 Boulder soling cum 200
7 Ironite flooring sqm 500
8 Expandable Mechanical
Anchor Bolts
Nos. 100
9 Brick work cum 350
10 MS doors / windows sqm 20
11 Al glazed doors / windows sqm 50
12 Weather coat sqm 440
13 PE Paint sqm 600
14 Plaster: 1090
15 Roof screed (M-15C) sqm 120
16 Water proofing with Atactic sqm 120
17 200 mm dia Precast RCC
Pipes (Class NP-3)
RM 550
18 Roads (Bituminous Top) sqm 1600
Note: Above quantity is in addition to the cost volume of civil & structural
works for which a lumpsum amount has been quoted in budgetary
quotation
STEEL AUTHORITY OF INDIA LIMITED
ROURKELA STEEL PLANTINSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY
VOLUME OF WORK FOR CAPITAL COST ESTIMATE
ANNEXURE 6.1.1-1
Base date: 4th Qtr 2010
Figures in Rs. Crore
ED CST VAT Service Tax Edu Cess Contingencies
10.30% 2% 12.5% 10.3% 3% 5%
Sl.No SHOP/FACILITY/PACKAGE EQUIPMENT SPARES STRUCTURALS REFRACTORIES CIVIL ERECTION ENGG & CONSTN FRT. & INSURANCE DUTIES & TAXES OTHERS CONTINGENCY CAPITAL COST
Total Incl. Total Incl. Total Incl. Total Incl. Total Total Total Incl. Total Incl. Total Incl. Total Incl. Total Incl. Total Incl.
Cost FC Cost FC Cost FC Cost FC Cost Cost Cost FC Cost FC Cost FC Cost FC Cost FC Cost FC
a b c d e FC g h I j k l m n o p q r s t u v w x
1 INSTALLATION OF A NEW
SULPHURIC ACID PLANT OF 125
TPD CAPACITY
14.67 2.08 4.81 2.18 2.37 0.05 3.53 1.48 31.16
2 IDC 0.93
3 CAPITAL COST 14.67 2.08 4.81 2.18 2.37 0.05 3.53 1.48 32.10
4 CENVAT CREDIT 2.30
5 CAPITAL COST NET OF CENVAT 14.67 2.08 4.81 2.18 2.37 0.05 3.53 1.48 29.80
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY
**CAPITAL COST ESTIMATE**SUMMARY
S T E E L A U T H O R I T Y OF I N D I A L I M I T E D
ROURKELA STEEL PLANT
Annexure-6.1.1-2
Page-1/3
Base date: 4th Qtr 2010
Figures in Rs. Crore
ED CST VAT Ser. Tax E&C Contingn
10.30% 2% 12.5% 10.3% 10% 5%
Sl.No SHOP/FACILITY/PACKAGE FC EQUIPMENT SPARES TECHNOLOGICAL STRS. BUILDING STRUCTURES REFRACTORIES CIVIL
ADOPTED Imported Indigenous Imported Indigenous Imported Indigenous BOUGHT OUT SITE FAB. . Imported Indigenous Indigenous
HW SW HW SW Imported Indigenous Indigenous
FC FC LC LC FC LC FC LC FC LC LC FC LC LC
a b c d e f g h I j k l m n o p q
1 INSTALLATION OF A NEW SULPHURIC
ACID PLANT OF 125 TPD CAPACITY14.67 2.08 4.81
2 IDC
3 CAPITAL COST 14.67 2.08 4.814 CENVAT CREDIT
5 CAPITAL COST NET OF CENVAT 14.67 2.08 4.81
S T E E L A U T H O R I T Y OF I N D I A L I M I T E D
ROURKELA STEEL PLANT
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY
** DETAILED CAPITAL COST ESTIMATE**
Sl.No
a
1 INSTALLATION OF A NEW SULPHURIC
ACID PLANT OF 125 TPD CAPACITY
2 IDC
3 CAPITAL COST
4 CENVAT CREDIT
5 CAPITAL COST NET OF CENVAT
Annexure-6.1.1-2
Page-2/3
Base date: 4th Qtr 2010
Figures in Rs. Crore
ERECTION FRT. & INS. IMPORT DUTIES, IT & CESS
Equipment Structure Refractories Dismantling Contractor's Ocean Inland CD CVD ITax on ADC Entry tax
Imp. Imp. Ind. FS
LC LC LC LC FC LC FC LC FC LC LC LC LC LC LC LC
r s t u v w x y z aa ab ac ad ae af ag
1.76 0.42 1.78 0.59 0.05 0.38
1.76 0.42 1.78 0.59 0.05 0.38
1.76 0.42 1.78 0.59 0.05 0.38
ENGG. & CONSTRN.
Owner's
Sl.No
a
1 INSTALLATION OF A NEW SULPHURIC
ACID PLANT OF 125 TPD CAPACITY
2 IDC
3 CAPITAL COST
4 CENVAT CREDIT
5 CAPITAL COST NET OF CENVAT
Annexure-6.1.1-2
Page-3/3
Base date: 4th Qtr 2010
Figures in Rs. Crore
EXCISE DUTY & TAXES KNOW-HOW TRAINING OTHERS CONTINGENCY
Excise Sales Edu cess VAT/WCT Service Tax
Duty Tax
LC LC LC LC LC FC LC FC LC FC LC FC LC FC LC TOTAL
ah ai aj ak al am an ao ap aq ar as at au av aw
1.72 0.37 0.48 0.57 1.48 31.16 31.16
0.93 0.93
1.72 0.37 0.48 0.57 1.48 32.10 32.102.30 2.30
1.72 0.37 0.48 0.57 1.48 29.80 29.80
TOTAL CAPITAL COST
Annexure-6.5.1-1
Production/tpa= 35000.00
Sl No. Item Unit Sp. Cons. Unit Rate Prod. Cost
(Rs./t)
Amount
(Rs. Cr/pa)
(A) Materials
1 Consumption of Sulphur/ annum (@ 330kg/t of
H2So4
t 0.33 6344 2093.52 7.33
(B) OPERATING COST :-
1 Operating Labour 601.80 2.11
2 Utilities & Services:
a) Consumption of Power/ annum (@ 63kWh/t of
H2So4)
MWh 0.080 3564 285.12 1.00
b) Consumption of make-up water/ annum (@ 3.3
Nm3/t of H2So4)
TH Nm3 0.003 4274 14.10 0.05
c) Consumption of nitrogen/ annum (@ 30 Nm3/hr
of H2So4 )
TH Nm3 0.01 4737 34.11 0.12
d) Consumption of steam/ annum (@ 30 Nm3/t of
H2So4 )
t 0.30 537 161.10 0.56
e) Credit to steam/ annum (@ 30 Nm3/t of H2So4 ) t 0.80 537 -429.60 -1.50
3 Lab Expenses Rs/t 128.19 0.45
S T E E L A U T H O R I T Y OF I N D I A L I M I T E D
ROURKELA STEEL PLANT
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY
GROSS MARGIN CALCULATION
3 Lab Expenses Rs/t 128.19 0.45
4 Maintenance share of other shop Rs/t 202.48 0.71
5 Operating Consumable Rs/t 167.67 0.59
6 Repair & Maintenance Rs/t 212.86 0.75
7 Works Cost of Suphuric Acid Rs/t 3471.35 12.15
(C) Total Works Cost of production of Suphuric
Acid
Rs. Cr./yr 12.15
(D) Puchase Price of Sulphuric Acid Rs. Cr./yr 6249.03 21.87
(C) Gross Margin Rs Cr/yr 9.72
Annexure 6.6.4-1
Sl. No. Description Unit Value
1 Capital Cost (Net of Cenvat) Rs crore 29.80
2 Gross Margin Rs crore 9.72
3 NPV @ 12.5% discount rate (Pre-tax) Rs.crore 45.06
4 NPV @ 12.5% discount rate (Post-tax) Rs.crore 28.74
5 IRR (Pre-Tax) % 31.33%
6 IRR (Post-Tax) % 25.43%
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD
CAPACITY
FINANCIAL ANALYSIS
S T E E L A U T H O R I T Y OF I N D I A L I M I T E D Annexure-6.6.3-1
ROURKELA STEEL PLANT
INSTALLATION OF A NEW SULPHURIC ACID PLANT OF 125 TPD CAPACITY Start of prod.
Profitability Projections Rs. in crore
Item/Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22
Capacity Utilisation 80% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Gross Margin from operation 3.89 8.75 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 4.86
Interest (LT+WC) 0.80 1.60 1.44 1.28 1.12 0.96 0.80 0.64 0.48 0.32 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation (WDV) 2.24 4.13 3.51 2.99 2.54 2.16 1.83 1.56 1.33 1.13 0.96 0.81 0.69 0.59 0.50 0.42 0.36 0.31 0.26
Profit Before Tax (PBT) 0.85 3.01 4.76 5.45 6.06 6.60 7.08 7.52 7.91 8.27 8.60 8.91 9.03 9.13 9.22 9.30 9.36 9.41 9.46 9.72 4.86
Corporate Income Tax exemption 0.28 1.00 1.58 1.81 2.01 2.19 2.35 2.50 2.63 2.75 2.86 2.96 3.00 3.03 3.06 3.09 3.11 3.13 3.14 3.23 1.61
Profit After Tax (PAT) 0.57 2.01 3.18 3.64 4.05 4.41 4.73 5.02 5.29 5.53 5.75 5.95 6.03 6.10 6.16 6.21 6.25 6.29 6.32 6.49 3.25
Cumulative PAT 0.57 2.58 5.76 9.40 13.45 17.85 22.59 27.61 32.89 38.42 44.17 50.11 56.14 62.24 68.40 74.61 80.86 87.15 93.47 99.96 103.21
Start of prod.
Cash flow statement
Cash-Inflows : Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22
A. Cash from operations 3.89 8.75 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 4.86
B. Equity/ Internal accruals 7.99 8.06
Loan incl. MM 7.99 8.06
Total 15.97 20.01 8.75 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 4.86
(B) Cash out-flow :
Capital expenditure
Equity/ Internal accruals 7.99 8.06
Loan 7.99 8.06
Interest payment
Long term loan (@10%) 0.80 1.60 1.44 1.28 1.12 0.96 0.80 0.64 0.48 0.32 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Working Capital
Principal repayment 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60 1.60
Corporate Income Tax 0.28 1.00 1.58 1.81 2.01 2.19 2.35 2.50 2.63 2.75 2.86 2.96 3.00 3.03 3.06 3.09 3.11 3.13 3.14 3.23 1.61
Total 15.97 17.21 4.21 4.63 4.70 4.74 4.76 4.76 4.74 4.72 4.67 4.62 2.96 3.00 3.03 3.06 3.09 3.11 3.13 3.14 3.23 1.61
Cash surplus 2.80 4.54 5.09 5.02 4.98 4.96 4.96 4.98 5.01 5.05 5.10 6.76 6.72 6.69 6.66 6.63 6.61 6.59 6.58 6.49 3.25
Cash surplus (Cummulative) 2.80 7.34 12.43 17.46 22.44 27.40 32.36 37.34 42.34 47.39 52.49 59.25 65.98 72.66 79.32 85.96 92.57 99.16 105.74 112.23 115.48
Start of prod.
NPV & IRR CALCULATIONS:
Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22
Outflow
Capital Cost (excl. IDC) 15.58 15.58
Production Loss
Corporate Income Tax 0.28 1.00 1.58 1.81 2.01 2.19 2.35 2.50 2.63 2.75 2.86 2.96 3.00 3.03 3.06 3.09 3.11 3.13 3.14 3.23 1.61
Inflow
Gross margin 3.89 8.75 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 4.86
CENVAT Credit 1.15 1.15
Net flow
Pre-tax -15.58 -10.54 9.90 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 9.72 4.86
Post Tax -15.58 -10.83 8.90 8.14 7.91 7.71 7.53 7.37 7.22 7.09 6.97 6.86 6.76 6.72 6.69 6.66 6.63 6.61 6.59 6.58 6.49 3.25
NPV (@ 12.5%), Rs Cr
Pre-tax 45.06
Post-tax 28.74
IRR
Pre-tax 31.33%
Post-tax 25.43%
ANNEXURE-5.2-1
IMPLEMENTATION SCHEDULE FOR INSTALLATION OF 125 TPD SULPHURIC ACID PLANT AT RSP
(STAGE - 1, ACTIVITIES)
'Duration in Months
S.NO. ACTIVITIES 1 2 3 4 5 6
1 Stage-I Approval
2 Issue of Tender Enquiry
3 Receipt of Offer
4 Scrutiny of Offers & Tender Discussion
5 Tender Reccommendation & Finalisation of Tenderer
RSP ANNEXURE-5.2-1 CET 05 RN 3173 FR CC 01 R=0
INSTALLATION OF SAP PAGE 1 OF 2 Nov-10
ANNEXURE-5.2-1
IMPLEMENTATION SCHEDULE FOR INSTALLATION OF SULPHURIC ACID PLANT AT RSP
(STAGE - II ACTIVITIES) Duration in Months
Sl.No. ACTIVITIES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
1 Stage-II Approval & Placement of Order
2 Design & Engg.
3 Civil Work
4 Structural work
5 Supply of Equipment
6 Erection of Equipment
7 Testing and Cold trials
8 Plant Commissioning
RSP ANNEXURE-5.2-1 CET 05 RN 3173 FR CC 01 R=0
INSTALLATION OF SAP PAGE 2 OF 2 Nov'10