SAIL modernisation delayed; SME steel buyers hit
Updated: Apr 11, 2014 04:43:19pm
New Delhi, Apr 11 (KNN) Modernisation plans of the Steel Authority of India (SAIL) is lagging behind, hurting in the process small scale buyers of steel who continue to pay high prices and face shortage.
“The expansion and modernization programme of SAIL is lagging behind vis-à-vis contractual date of completion of various facilities. The implementation of modernization and expansion plan has been affected mainly due to unforeseen soil conditions encountered, underestimation of quantities by the consultant, logistic problems due to brownfield nature of job, inadequate mobilization of resources by the contracting agencies etc,” said an official notification.
As of now, there is no cost overrun in any of the plants due to delay. In case of ISP expansion, the cost estimate has been revised to Rs. 16,408 crore against the earlier cost of Rs. 14,443 crore due to increase in civil and structural work for BOF, CCP and Rolling Mills packages, proportionate increase in IDC and EDC and provision for future escalations, it said.
However, SAIL has taken various corrective steps for expediting the project works which include enhancing delegation of powers, implementation of Integrated Project Management System, strengthening of project management organization, assistance to contractors in form of steel, pipes and other SAIL products, provision of space for fabrication yard to facilitate the contractor in fabricating structures and reducing transportation delays, constitution of Board Sub Committee (BSC) to review Expansion and Modernisation.
The physical and financial progress of modernization and expansion plan and the performance of contractors are also being reviewed periodically at SAIL Board, Ministry of Steel, Ministry of Statistics and Planning Implementation and Ministry of Heavy Industries level.
As far as the present status of modernization and expansion projects at various plants of SAIL is concerned, at Rourkela steel plant, the new blast furnace has been commissioned. In addition, ore bedding and blending plant, cob-6 complex including coal handling plant, coke dry cooling plant and coal chemicals department, sinter plant-3 and continuous caster have also been completed as also the power and blowing station.
At IISCO Steel Plant, coke oven battery, sinter plant and wire rod mill have been completed as also the power and blowing station. Facilities like blast furnace and oxygen plant are ready for commissioning.
At Bokaro Steel Plant, acid regeneration plant, coil packaging lines, skin pass mill, compressed air station and power supply facilities required for new CRM have been completed. For pickling line and cold tandem mill, integrated trial run was done in July 2013.
At Bhilai Steel Plant some of the facilities like ore handling plant (part-a), up-gradation of plate mill and new compressed air station have been completed.
At Durgapur Steel Plant, rebuilding of coke oven battery-2 and ladle furnace have been completed and are under operation/stabilization.
Expansion of Salem Steel Plant has been completed in September, 2010 and is under regular operation.
In addition, the 6.3 million tonne per annum (MTPA) expansion project of Rashtriya Ispat Nigam Limited (RINL) is on the verge of completion with the commencement of production from major units of Stage-1 viz., Raw Material Handling Plant, Sinter Plant-3, Turbo Blower-4, Blast Furnace-3, Steel Melt Shop-2, Wire Rod Mill-2 and other auxiliary systems viz., water systems, power systems & other utility systems. Balance units of Stage-1 (viz., Lime Kiln Plant, part of Steel Melt Shop-2 and Wire Rod Mill-2) and Stage-2 (Special Bar Mill and Structural Mill) are planned to be commissioned progressively by September, 2014. (KNN Bureau)
“The expansion and modernization programme of SAIL is lagging behind vis-à-vis contractual date of completion of various facilities. The implementation of modernization and expansion plan has been affected mainly due to unforeseen soil conditions encountered, underestimation of quantities by the consultant, logistic problems due to brownfield nature of job, inadequate mobilization of resources by the contracting agencies etc,” said an official notification.
As of now, there is no cost overrun in any of the plants due to delay. In case of ISP expansion, the cost estimate has been revised to Rs. 16,408 crore against the earlier cost of Rs. 14,443 crore due to increase in civil and structural work for BOF, CCP and Rolling Mills packages, proportionate increase in IDC and EDC and provision for future escalations, it said.
However, SAIL has taken various corrective steps for expediting the project works which include enhancing delegation of powers, implementation of Integrated Project Management System, strengthening of project management organization, assistance to contractors in form of steel, pipes and other SAIL products, provision of space for fabrication yard to facilitate the contractor in fabricating structures and reducing transportation delays, constitution of Board Sub Committee (BSC) to review Expansion and Modernisation.
The physical and financial progress of modernization and expansion plan and the performance of contractors are also being reviewed periodically at SAIL Board, Ministry of Steel, Ministry of Statistics and Planning Implementation and Ministry of Heavy Industries level.
As far as the present status of modernization and expansion projects at various plants of SAIL is concerned, at Rourkela steel plant, the new blast furnace has been commissioned. In addition, ore bedding and blending plant, cob-6 complex including coal handling plant, coke dry cooling plant and coal chemicals department, sinter plant-3 and continuous caster have also been completed as also the power and blowing station.
At IISCO Steel Plant, coke oven battery, sinter plant and wire rod mill have been completed as also the power and blowing station. Facilities like blast furnace and oxygen plant are ready for commissioning.
At Bokaro Steel Plant, acid regeneration plant, coil packaging lines, skin pass mill, compressed air station and power supply facilities required for new CRM have been completed. For pickling line and cold tandem mill, integrated trial run was done in July 2013.
At Bhilai Steel Plant some of the facilities like ore handling plant (part-a), up-gradation of plate mill and new compressed air station have been completed.
At Durgapur Steel Plant, rebuilding of coke oven battery-2 and ladle furnace have been completed and are under operation/stabilization.
Expansion of Salem Steel Plant has been completed in September, 2010 and is under regular operation.
In addition, the 6.3 million tonne per annum (MTPA) expansion project of Rashtriya Ispat Nigam Limited (RINL) is on the verge of completion with the commencement of production from major units of Stage-1 viz., Raw Material Handling Plant, Sinter Plant-3, Turbo Blower-4, Blast Furnace-3, Steel Melt Shop-2, Wire Rod Mill-2 and other auxiliary systems viz., water systems, power systems & other utility systems. Balance units of Stage-1 (viz., Lime Kiln Plant, part of Steel Melt Shop-2 and Wire Rod Mill-2) and Stage-2 (Special Bar Mill and Structural Mill) are planned to be commissioned progressively by September, 2014. (KNN Bureau)
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