rourkela steel plant rourkela installation of 125 tpd...

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

INSTALLATION OF SAP PAGE 1 OF 3

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



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



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

RSP CET/05/RN/3173/FR/CC/01 R=1

INSTALLATION OF SAP PAGE 1.1

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.



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.


INSTALLATION OF SAP PAGE 2. 1

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)



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



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.



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.



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.



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



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



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.



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.



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



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:



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.



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.



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



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


plant



3) Steam On the trestle on the other side of the


plant

4) Nitrogen On the trestle on the other side of the


plant

5) Fire Fighting Water Underground line near existing

sulphuric acid plant

6) Generated Steam On the trestle on the other side of the


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



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



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



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



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.



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.



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.



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



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



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


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



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.



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.


9 DN 100 PIPE Seamless A 106 Gr

B Kg 1607 1.61 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.


15 DN 100 CI NRV Nos. 2 0.10 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.


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.


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


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


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


**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


Annexure-6.1.1-2

Page-1/3



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




** DETAILED CAPITAL COST ESTIMATE**

Sl.No

a


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



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


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



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




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


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

rourkela steel plant rourkela installation of 125 tpd...

Documents