transmission line tower (tlt) manufacturing...
TRANSCRIPT
JOINT VENTURE OF RINL & POWERGRID
TECHNO ECONOMIC FEASIBILITY REPORT (TEFR)
ON
TRANSMISSION LINE TOWER (TLT)MANUFACTURING COMPLEX
MECON LIMITEDRANCHI-834002
JHARKHAND
11. 24.2012.F2068 July’ 2014
JOINT VENTURE OF RINL & POWERGRID
TECHNO ECONOMIC FEASIBILITY REPORT (TEFR)
ON
TRANSMISSION LINE TOWER (TLT)MANUFACTURING COMPLEX
MECON LIMITEDRANCHI-834002
JHARKHAND
11. 24.2012.F2068 July’ 2014
JOINT VENTURE OF RINL & POWERGRID
TECHNO ECONOMIC FEASIBILITY REPORT (TEFR)
ON
TRANSMISSION LINE TOWER (TLT)MANUFACTURING COMPLEX
MECON LIMITEDRANCHI-834002
JHARKHAND
11. 24.2012.F2068 July’ 2014
CONTENTSl.
No.Title Page No.
1. Introduction 1 – 3
2. Executive Summary 4 – 16
3. Characteristics & End uses 17 – 26
4. Market Analysis 27 – 36
5. Technological Considerations 37 – 41
6. Site Selection & General layout 42 – 47
7. TLT Fabrication Unit 48 – 56
8. TLT Galvanizing Unit 57 – 62
9. Electrics & Automation 63 – 73
10. Plant Services & Utilities 74 – 92
11. Quality Control Facilities 93 – 96
12. Civil & Structural Works 97 – 104
13. Manpower Requirement 105 – 107
14. Project Implementation 108 – 114
15. Pollution Control & Waste Management 115 – 117
16. Capital Cost 118 – 122
17. Production Cost 123 – 127
18. Financial Appraisal 128 – 138
19. Industrial Safety 139 – 141
20. Drawings 142
PREPARED BY CHECKED BY APPROVED BY
SAURABH MARKAM
Design Engineer
Rolling Mills
NISHEETH KUMAR
Asst. General Manager
Rolling Mills
GOUTAM CHAKRABORTY
Jt. General Manager
Rolling Mills
JOINT VENTURE OF RINL & POWERGRIDTECHNO ECONOMIC FEASIBILITY REPORT
FORTRANSMISSION LINE TOWER (TLT)
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01. INTRODUCTION
01.01 Background
Visakhapatnam Steel Plant (VSP) is an integrated public sector steel plant
owned by Rashtriya Ispat Nigam Ltd. (RINL), a Navaratna Company under
Ministry of Steel built with an annual production of about 3.6MT of liquid
steel per annum. Recently they have completed their expansion of
capacity up to 6.3 MT/yr through BF-BOF route with addition of new
rolling mills.
Power Grid Corporation of India Ltd. (POWERGRID), a Navaratna PSE
under ministry of power & the central transmission utility (CTU) of the
country, is engaged in power transmission business with responsibility of
planning, coordination, supervision and controlling over complete inter-
state transmission system and operation of national & regional power
grids. Power grid is playing a key role in Indian power sector directly
contributing to economic development of the country, through
establishing large and complex transmission network and as grid
operator.
RINL and POWERGRID are entering into a joint venture project to install
Transmission Line Tower (TLT) manufacturing complex with a view to
JOINT VENTURE OF RINL & POWERGRIDTECHNO ECONOMIC FEASIBILITY REPORT
FORTRANSMISSION LINE TOWER (TLT)
MANUFACTURING COMPLEX
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exploit the emerging opportunity in transmission line tower
manufacturing business in India and abroad. RINL will supply quality raw
material in form of re-rollable steel / black angles to the joint venture
company to further produce TLT.
1.02 The Assignment
RINL & POWERGRID have assigned MECON vide their letter no.
CSM/POWERGRID/I/ dated 9/3/2012 to go ahead for the preparation of
Techno-Economic Feasibility Report (TEFR) for setting up Transmission
tower Manufacturing Unit.
01.03 Content of the Report
The TEFR as set out in the following chapter covers the Introduction,
Executive Summary, Market analysis, Technological consideration, Site
selection & General layout, TLT Fabrication Unit, TLT Galvanizing Unit,
Electrics & Automation, Plant Services and utilities, Quality control
facilities, Civil & structural works, Manpower requirement, Project
implementation, Pollution control, Capital cost, Production costs and
Financial appraisal.
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01.04 Acknowledgment
MECON places on record its deep appreciation and gratitude to the
Chairman cum Managing Director and other officials of RINL &
POWERGRID for the assignment and the guidance and cooperation
extended by them during preparation of this report.
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02. EXECUTIVE SUMMARY
02.01 Introduction
Visakhapatnam Steel Plant (VSP) is an integrated public sector steel plant
owned by Rashtriya Ispat Nigam Ltd. (RINL), a Navaratna company under
ministry of Steel & Power Grid Corporation of India Ltd. (POWERGRID), a
Navaratna PSE under ministry of Power & the Central Transmission Utility
(CTU) of the country, are entering into a joint venture project to install
Transmission Line Tower (TLT) manufacturing complex with a view to
exploit the emerging opportunity in transmission line tower
manufacturing business in India and abroad. RINL will supply quality raw
material in form of re-rollable steel / black angles to the joint venture
company to further produce TLT parts.
02.02 Market Analysis
As analyzed in relevant chapter of this report, based on average demand
figures and average availability; the resultant gaps (-) / Surplus (+) are
summarized as below:
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Year Demand Availability Gaps (-) /
Surpluses (+)
DOMESTIC
2012-17 4.10 3.60 -0.5
WITH EXPORT (+20%)
2012-17 4.90 3.60 -1.3
02.03 Technical Consideration
Installation of a Transmission Line Tower (TLT) manufacturing unit
requires analysis of important factors such as capacity of plant, availability
of raw materials, availability of infrastructure facilities and cost
considerations.
The capacity of proposed plant has been decided based on desk study of
requirement of TLT in the future considering the proposed massive
capacity augmentation plan in power sector. As emerged from the desk
study the plant capacity has been fixed as 120,000 t/yr. The Technological
unit capacity has been fixed considering the popular plant size capacity as
per existing units in India as well as abroad and the limitation in handling
no. of pieces annually in a unit etc.
The main technological units envisaged are:
a) TLT Fabrication Unit (2 units of 60,000 tpy each)
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b) TLT Galvanizing Unit (2 units of 60,000 tpy each)
The black angles in the product – mix of RINL will be made available by
RINL. As per the product – mix & production schedules of RINL,
approximately 30% of the angles required would be provided by RINL.
Rest of the angles will be sourced from other market sources including
authorized conversion agents for which the input billets / blooms will be
made available by RINL. Proposed process flow are shown in the drawing
MEC/11/24/123J/TEFR/003.
02.04 Site Selection & General Layout
Site for TLT manufacturing complex has been finalized based on only
quantitative analysis & no techno economic calculation has been carried
out. Out of the three sites available, RINL site has emerged as the most
suitable site. Proposed site is located very close to the existing steel plant
of M/s RINL. Adequate acquired land is available at this site.
Layout of the proposed plant has been developed keeping in view of the
following:
a) Availability of adequate land.
b) Direction of Road entry to the plant.
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c) Unidirectional flow of material suiting to the sequence of process
flow.
d) Safety considerations.
e) Provision of green belt.
A total area of approximately 50 acres has been envisaged inside the
complex boundary.
02.05 TLT Fabrication Unit
Two (2) TLT Fabrication Units of 60,000 t/yr capacity each has been
envisaged. The TLT Fabrication Units will fabricate the TLT parts as per
requirement of TLT unit.
The TLT Fabrication Units will use angles from RINL / conversion agents
/other market sources for fabrication of TLT parts. The plates required for
the production of TLT parts will be procured from outside market sources.
Multiple operations required during fabrication can be covered in single
state of the art CNC machine. Sufficient numbers of automated machines
with CNC state of the art technology have been envisaged to cater to the
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requirement of fabrication shop to fabricate angles and plates as per
requirement.
An in-house Design department for production planning and preparation
of shop fabrication drawings has been envisaged with latest state of art
software & hardware.
For Inter-bay transfer of angles / cut pieces of angles, sufficient number of
Fork-lifts has been envisaged in the bay together with material transfer
trolleys and EOT cranes.
02.06 TLT Galvanizing Unit
Two (2) number TLT Galvanizing Units of 60,000 t/yr capacity each has
been envisaged. The TLT Galvanizing Units will hot dip galvanize the
fabricated TLT parts.
About 120,000 tons of fabricated TLT Parts will be galvanized annually for
the envisaged production. The maximum length of single part to be
galvanized has been envisaged as 8.5 m. A semi-automatic process for
galvanizing the TLT parts has been envisaged. The process of hanging the
TLT parts on to the Hangers / Jigs before Galvanizing process and
removing the TLT parts from the Hangers / Jigs after Galvanizing process
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is manual. The Galvanizing process is automated. Galvanizing unit shall
include all pretreatment and post treatment facilities.
02.07 Plant Services & Utilities
02.07.01 Water Supply Facilities
Water for the proposed integrated complex for manufacturing
transmission line towers will mostly be required for direct and indirect
cooling of plants/ machines/ equipment with a part to be consumed for
drinking and sanitation purpose and other direct process and general
purpose needs. Individual recirculation system has been envisaged for
water systems of various plant units to effect extensive recycling and
reuse of return water from plant processes after necessary treatment and
conditioning.
02.07.02 Air Conditioning & Ventilation System
Ventilation and air-conditioning systems are proposed to provide proper
working conditions necessary for maintaining environment compatible
with human hygienic requirements and to maintain conditions necessary
for proper storage of materials and working of plant and equipment. The
ventilation and air-conditioning systems generally include one or more
items of equipment and accessories such as fans, air filters, air washers,
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air-conditioning units, duct work, pumps, cooling tower, air supply grills,
dampers, insulation, instrumentation and controls, electrics, etc.
02.07.03 Fire Fighting Facilities
Many working premises in plant have hazardous and fire prone
environment. To protect the working personnel, equipment and
machineries, adequate safety and fire fighting measures have been
planned for the proposed plant.
02.07.04 Compressed Air System
A centralized compressed air station has been envisaged in order to meet
the requirement of industrial and instrument quality compressed air for
the proposed plant.
02.07.05 Inter Plant & In-Shop Piping Network
Inter-plant piping network will be provided with supporting structures for
supply of compressed air, instrument air and fuel oil to meet the process
requirement from compressed air station and fuel oil installation.
The interplant piping network shall consist of a common trestle / stockade
/ bridge carrying pipes from sources to consumers. In shop piping
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network, consist of pipes carrying various fluids, will be supported from
building column / structures.
02.07.06 Fuel Gas / Oil Handling Facilities
The requirement of CO Gas for the Heating Furnaces in the Fabrication
Unit and for the Galvanizing Unit has been estimated based on specific
consumption per ton. Hourly consumption will be around 1100 Nm3/hr.
CO Gas will be tapped from RINL’s existing line and pipeline for
transporting the required quantity along with Nitrogen Line for purging
will be laid from the tapping point to the site.
In addition to above, provision for use of Furnace oil in case of shortage /
disruption of CO Gas supply has also been envisaged.
02.08 Quality Control Facilities
The proposed transmission line towers (TLT) Manufacturing Complex will
produce high quality galvanized transmission line towers according to the
stipulations of various national and international standards. In order to
achieve this objective, efficient and stringent quality assurance measures
are to be enforced at every stage of production. Quality assurance can be
implemented effectively in the form of analyses and test results which
can be provided only by well-equipped laboratories entrusted with day-
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to-day quality control at all stages of processing and quality evaluation of
finished products.
02.09 Civil & Structural Works
The Civil works consists of site preparation, providing foundations of Main
building for Fabrication Unit, Galvanizing Unit together with equipment
foundations required and associated works for all plants, auxiliary
buildings, electrical control rooms, transformer rooms, laboratory,
compressed air station, pump house, MSDS, water supply facilities, etc.
suiting to the requirements of TLT Manufacturing Complex and other
service facilities like drainage, sewerage, roads, boundary fencing, site
leveling, etc.
Steel structural work will include supply, fabrication, erection & painting
of all structures of the following units:
a) TLT Fabrication Unit
b) TLT Galvanizing Unit
c) All related Piping support structures
d) Other Miscellaneous structures
The structures will include building structures, pipe trestles etc. for the
TLT Manufacturing Complex.
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02.10 Manpower Requirement
Meticulous distribution of manpower is essential for uninterrupted
operation and proper maintenance of plant facilities. For the proposed
plant, the manpower requirement has been estimated based on the
following considerations:
- Production shops and their capacities.
- Type of equipment proposed for the main production shops and
corresponding auxiliary / services facilities.
- Degree of automation and mechanization envisaged in different
units.
- Extent of manning required for each equipment.
- Number of operating shifts.
- Supporting personnel for weekly off and leave reserves.
02.11 Project Implementation
The project has been planned to be completed in 16 month from “Zero
date” which is reckoned as “Start of ordering of Main Technological
Units”.
With a target of early realization & stabilization of manufacturing
facilities, it has been foreseen to stagger the implementation of proposed
Fabrication & Galvanizing Units. In this staggering process, one unit each
for Fabrication & Galvanizing may be commissioned first with the Input
Angles from RINL / Market as per the requirement and availability. The
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second units for Fabrication & Galvanizing may be subsequently
commissioned.
This staggering of commissioning of different units will facilitate the JV in
two ways:
Stabilization of Fabrication & Galvanizing process / machines.
Unit will start producing required TLT parts to meet the huge
market demands. This will establish the standing of this complex in
the market before the Integrated Commissioning of Complex.
However, the execution of the proposed project would call for meticulous
planning, monitoring and control during engineering, procurement and
construction stage. Salient aspects relating to project implementation
strategy are covered in relevant chapter.
02.12 Pollution Control
The pollution control system for the proposed TLT Manufacturing
Complex can broadly be divided into the following three categories:
- Air pollution control
- Noise pollution control
- Water pollution control
Adequate measures have been envisaged so that all the treated effluents
let out of the complex will conform to permissible limits set by the
statutory authorities/pollution control boards.
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02.13 Capital Cost
The capital cost of the proposed 120,000 T/Y capacity TLT manufacturing
complex proposed at VIZAG including galvanizing and other related
auxiliaries and services as envisaged has been estimated and summarized
as given below:
Sl. No. Description Cost (Crore Rs.)
1. Plant Proper 312.8
2 Interest during construction 12.3
3 Capitalized Land use charges 6.2
4 TOTAL 331.3
Including foreign exchange
component
106.0
02.14 Production Cost
The proposed TLT Complex has been envisaged to produce total of
120000 Tons of galvanized finished products annually. It is assumed that
the plant would operate at 80 % capacity during first year, 90% during
second year and 100 % during third year and onwards.
The average production cost excluding depreciation and interest during
third year of operation when the plant achieves rated capacity utilization,
works out to Rs 52,263/ton (rounded).
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02.15 Financial Appraisal
Financial analysis has been carried out based on capital investment and
operating cost and Average net sales realization. The salient techno-
economic indices of the project have been summarized below:
SALIENT TECHNO-ECONOMIC INDICES
Sl. No. Item description Unit Indices
1 Cumulative retained profit over
10 years of operation
Crore. Rs. 267.2
2 Average annual retained profit over
10 years of operation
Crore. Rs 26.7
3 Cumulative cash surplus over
10 years of operation
Crore. Rs 186.3
4 Average Debt-service coverage ratio over 10
years of operation
Ratio 1.51
5 Pay-back period Years 7.9
6 Break even capacity % 63
7 Internal rate return (IRR) over 20 years
Of operation
Pre-tax
Post-tax
%
%
22.1
18.8
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03. CHARACTERISTICS & END USES
03.01 OVERVIEW
Transmission line towers are used to transmit electricity at high voltage
(33kV to 800kV AC/DC) from power generation station to utilities, Sub-
stations / Load centers. Transmission line connects two nodes of the
power supply grid.
Generally the towers are of self supporting lattice steel type, designed to
carry the line Conductor with necessary insulators, earth wires and all
fittings under all loading conditions.
The towers are fully galvanized structure, using structural mild steel / high
tensile steel sections for members. Galvanized Bolts and nuts with spring
washers are used for connection.
These towers support one or more overhead line conductors (ACSR /
AAAC/Other types) carrying electrical power at high voltage, mostly 3-
phase AC circuits of voltages ranging from 33kV to 800kV. To prevent
safety against lightening, earth wire / OPGW are placed at tower peak.
OPGW (Optical fiber ground wire) is now being used instead of regular
GSS (Steel stranded wire) as it is being used for data transmission for
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broad band as well as earthing the live conductors. The live conductors
are supported by Insulators which in turn is attached to tower cross arm
through Hangers / D’ shackles. To prevent short circuit between live and
earthed parts including the surrounding environment minimum mutual
clearances are prescribed for different voltage capacity of transmission
line as per recommendations of IS: 5613.
The tower are designed such that it can be attached to various body
extensions and leg extensions for maintaining adequate ground clearance
at various ground profiles/road/rail crossings etc.
03.02 TOWER CLASSIFICATIONS/DESIGNATIONS
Transmission Towers can be grouped based on various
design/functional/structural aspects as given below:
CRITERIA TYPES
STRUCTURAL ACTION TO LOADS SELF SUPPORTING TOWERS GUYED
TOWERS
NO. OF CIRCUITS SINGLE/DOUBLE/MULTIPLE CIRCUIT
TOWERS
POWER TRANSMISSION CAPACITY 33KV, 66KV, 132KV, 220KV, 400KV,
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[VOLTAGE LEVEL] 765KV, 800KV, etc.
TOWER SHAPES VERTICAL/HORIZONTAL/DELTA/H
STRUCTURES
Mostly self supporting latticed steel towers are used in India and other
countries. These towers support the various loads coming on to the
structure on their own. The design aspects of these towers are covered
under Indian standard (IS: 802 — part 1, 2, 3). These towers are designed,
fabricated and tested prototype in line with various recommendations of
IS: 802.
These towers are made up of structural angle profiles of Mild steel and
high tensile steel grades and members are connected by bolts. Normally
these towers have square or rectangular base.
Guy towers comprise portal structures in ‘Y’ or ‘V’ shape and are
anchored to Ground through steel Guys. They have been used in some
countries for EHV lines up to 735 kV. Such towers occupy much larger
land space compared to self supporting towers and as such area used in
long unoccupied waste land, bush tracts in Canada, Brazil , Russia. In India
such towers are not being used.
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TOWER DESIGNATIONS:
Towers are broadly designated as:
a) SUSPENSION TOWERS
b) ANGLE TOWERS
which are further declassified as per angle of deviation as given below:
TOWER
MARKINGS
DESCRIPTION ANGLE OF
DEVIATION
REMARKS
A/DA/MA Suspension Tower –
Used on straight line
stretch
00 - 20 Tower nomenclature
may vary
B/DB/MB Small angle tower 00 -150 D=> Double circuit
M=> Multiple Circuit
C/DC/MC Medium Angle Tower
/ Transposition
Tower
150 – 300
D/DD/MD Big angle Tower /
Dead End – Tower
300 – 600 /Dead
End
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INDICATIVE STATEMENT OF TOWER WEIGHTS
(APPROXIMATE TOWER WEIGHT (MT)
Tower Type/TowerWeight 765KV 800KV 500KV 400KV 400KV 220KV
(WZ-4) S/C D/C HVDC HVDC D/C D/C D/CHORZ. DELTA QUAD TWIN
MS 8.5 11.1 22 15.3 8.4 9.3 6.9 2.4A/SA/DA HT 6.4 9.5 27.4 15.2 5.8 7.7 4.4 1.9
B&N 0.6 1.1 2 1.4 0.6 1 0.6 0.3Total 15.5 21.7 51.4 31.9 14.8 18 11.9 4.6Total
MS+HT 14.9 20.6 49.4 30.5 14.2 17 11.3 4.3
MS 9.6 17.7 23 14.2 8 8.6 6.6 4.2HT 8.5 12.8 71.6 30.7 9.5 19.3 9.8 2.1
B/SB/DB B&N 0.7 1.3 4.7 1.8 0.9 1.1 0.7 0.3Total 18.8 31.8 99.3 46.7 18.4 29 17.1 6.6Total
MS+HT 18.1 30.5 94.6 44.9 17.5 27.9 16.4 6.3
MS 13.7 19.1 35.5 13.4 11.6 9.1 6.1 4.3HT 11.1 18.3 68.6 40 9.5 22.8 11.9 2.4
C/SD/DC B&N 0.9 1.4 5.3 2.2 1.1 1.3 0.7 0.3Total 25.7 38.8 109.4 55.6 22.2 33.2 18.7 7Total
MS+HT 24.8 37.4 104.1 53.4 21.1 31.9 18 6.7
MS 18.8 21.7 26.7 24.7 14.9 15.2 10.1 4.7HT 16.7 22.4 78.6 36.7 11.2 24.9 14.9 3.6
D/DD B&N 1.3 1.8 4.7 2.6 1.2 1.8 0.9 0.4Total 36.8 45.9 110 64 27.3 41.9 25.9 8.7Total
MS+HT 35.5 44.1 105.3 61.4 26.1 40.1 25 8.3
Source: Tower weight data as per POWERGRID designs being used for variouslines.
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Tower Structure MT per km(Plain Terrain) 57 77 192 111 49 67 42 18
Tower Structure MT per km(Hilly/Mount Terrain) 81 113 303 161 66 101 61 26
The above weights are for Normal (standard height) towers.
Weight of tower extensions +3/6/9 m are approx. 10 – 20% and extensions + 18/25
m are approx. 80 – 100% extra
INDICATIVE DISTRIBUTION OF TOWERS IN A TYPICAL TRANSMISSION LINE
Type of Terrain PLAIN TERRAIN HILLY/MOUNTAINOUSTERRAIN
400KV,765KV, 500KV
HVDC220KV 400KV, 765KV,
500KV HVDC 220KV
AVERAGE SPAN (m) 370 330 350 300Suspension Towers
(A/DA) 65% Nil
Tension TowersB/DB 7.5% 30%
C/DC 7.5% 30%D/DD 20% 40%
Approx. 20% of towers are with extensions
Average Weight of extension considered to be 20% of Standard tower weight
Factor for extension weight considered 1.04
03.03 GENERAL DETAILS OF TOWERS:
The broad scope of turnkey transmission line project involves following
activities:
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a) Preliminary survey, detailed survey, tower spotting, optimization
of tower location, soil resistivity measurements and geo-technical
investigation,
b) Tower design, testing, fabrication and supply of all types of
transmission line towers including bolts, nuts and washer, hanger,
D-shackle and all types of tower accessories like phase plate,
number plate, danger plate, anti-climbing device, etc;
c) Design, selecting type of foundation for different towers and
casting of foundation for towers,
d) Erection of towers, tack welding of bolts and nuts, supply and
application of zinc rich paint,
e) Tower earthing,
f) Fixing of insulator string, stringing of conductors and earth wires
along with all necessary line accessories and
g) Testing and commissioning of the erected transmission lines.
Various steps involved in design of transmission tower are given below:
a) Sag — Tension Calculation
b) Fixing configuration by providing minimum required clearances
c) Loading Calculation
d) Loading Combination
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e) Analysis & Design
f) Detailing
g) Prototype testing of towers
Normal Span
Normal span limits for different voltage capacity of transmission line are
as given in IS: 5613. Normal span of 400 m is generally considered for
400KV and 765Kv lines in India.
Wind Span
The wind span is the sum of the two half spans adjacent to the support
under consideration. For normal horizontal spans this equals to normal
span.
Weight Span
The weight span is the horizontal distance between lowest points of the
conductors on the two spans adjacent to the tower.
Minimum Ground Clearance
The minimum ground clearance from the bottom conductor shall not be
less than values stipulated in CEA’s safety regulations/IE rules for various
voltage levels at the maximum sag conditions.
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Live Metal Clearance
The minimum live metal clearance to be provided between the live parts
and steel work of super-structure shall conform to IS: 5613
03.04 LOADING CONDITIONS
Loads at conductor and earth wire points
These loads are to be based on IS: 802 / Part-1 1995 and towers are to be
designed to cater for the following loads:
a) Reliability Loads (Normal condition)
b) Security Loads (Broken wire condition)
c) Safety Loads (Construction & Maintenance loads)
03.05 Tower Material
In general the grade wise consumption in overhead transmission tower
comprise about 30-40% of mild steel grade, 60-70 of high strength steel
and 4%-5% of nuts and bolts. The tower member are generally of
structural steel conforming IS 2062. The standard IS: 802 governs the use
of structural steel in overhead transmission line towers which gives the
details of grades of steel to be used in tower members i.e. angles, bolts,
nuts, washers. Profile wise about 90% angle, 4-6% plates and 4%-5% nuts
& bolts are normally being used in Transmission tower. The related size
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tolerance in angles products are governed by IS 808 / DIN 1028.
Sometime unequal angles are also being used in design of Transmission
tower.
03.06 TOWER FABRICATION EARTHING/TESTING/ACCESORIES
Galvanizing
Fully galvanized towers and stub are used for the line. Galvanizing of the
member of the towers shall conform to relevant Indian standards.
TOWER EARTHING
All the towers are to be earthed. In no case tower footing resistance shall
exceed 10 ohms in accordance with the stipulation made in IS: 5613
TOWER LOAD TESTS
Galvanized tower of each type complete with Maximum body and leg
extension is subjected to design and destruction tests as per
recommendations of IS: 802.
TOWERS ACCESSORIES.
Various accessories used on a typical transmission line are Step Bolts,
Insulator string and Earth wire Clamps Attachments, Anti climbing Device,
Danger plates, Number plates, Circuit Plate, Phase Plate & Bird Guards.
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04.0 MARKET ANALYSIS
04.01 Indian Power Transmission Scenario
The resolve of nation for “Power to all” led to massive capacity
augmentation plans in Power Sector envisaging creation of capacities in
generation as follows (Table-04.01).
Table-04.01
Creation of capacities in generation
Item 2006-2007 2016-17
Generation including
captive generation
140 GW 331 GW
Source: Ministry of Power
The ardent need to evacuate this power and deliver it to consuming
centers coupled with the fact that Indian power landscape is
characterized by widely spread load centers and generation resources
wherein majority of load centers are located in South and West and
generation resources in East/ North- eastern part of country and this
typicality pressed up the need for massive augmentation of Transmission
& distribute network which stands already underinvested in the past.
In view of above, power transmission lines, particularly the bulk power
transmission system came in focus and Towers being the most important
as well as expansive constituent of the system were studied by CEA and a
synopsis w.r.t. steel requirement for the same assessed as per projections
for XIIth five yr plan and the same has been brought out by CEA and
presented hereunder:
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Table - 04.01
CEA’s projection of steel requirement for transmission towers
Sl.
No.
Voltage
(KV)
By XIIth Plan
(Ton)
Type of Steel
MS HTS
1. 765 416000 60% 40%
2. 500 413640 60% 40%
3. 400 2088680 60% 40%
4. 220 464600 100% -
5. 132 36400 100% -
Total 3746920
Say 3.7 MT
Source: CEA Document “Requirement of equipment & material for
development of power sector”
04.02 Demand Analysis
Attempt has been made to assess the realistic demand of towers and
thereby, steel requirement (angles) based on other approaches as
outlined hereunder.
Alternative Approach
Based on normative consideration, a projection for tower requirements
has also been made by the central transmission utility (POWERGRID) as
presented below:
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Table-04.05
Sl.no.
Voltagelevel(KV)
Expectedadditions
during 12th
plan(CktKms)
Average Specific steelrequirements (Tons/CktKm) assuming Plain to
hilly terrain ratio as 85%and 15% respectively
Total estimatedtower wt(Million
Ton)
1 765 27000 98 2.65
2 800/50
0 HVDC
Bipole
9440 53 0.50
3 400 38000 30 1.14
4 220 35000 10 0.35
Grand
Total
109440 4.64
Angle requirement@95% 4.41
Source: Indicative data from POWERGRID based on Draft electricity plan
of CEA (Feb’12)
13th Plan: 30% more requirement as per CEA’s Electricity Plan
Final demand assessment
Based on the above two approaches (CEA and POWERGRID Based data),
the average demand figures works out as follows:
Estimated Demand (2012-17) 4.1 Million Metric Ton
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04.03 International Scenario
The international capex cycle for power sector is observed as follows (Fig-
04.01 and Table-04.06):
0
500
1000
1500
2000
2500
OECD E.EUROPE ASIA MIDDLE EAST AFRICA LATIN AMERICA
IN B
ILLI
ON
US
$
Generation Transmission Distribution
Source: Indbank / merchant banking Ltd. Assessment for Kalptaru Power
Transmission and corroborated by CRISIL study.
Fig-04.01: International capex cycle for power sector
The scenario exhibits development and growth concentrations in OECD1 and
Asian region.
Table-04.06
International capex cycle for power sector (In Billion US$)
Region Expected
Capacity
Additional (GW)
Generation Transmission Distribution
OECD 514 982 279 656
1 OECD = Organization of Economic Co-operation and Development
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E. Europe 137 180 55 183
Asia 781 794 433* 894
Middle Cast 78 59 32 67
Africa 59 59 28 58
Latin
America
121 123 41 84
World Total 1691 2197 867 1947
*India by 12th plan is assumed included as 42 Billion$
Source : Internet
It is obvious from the above table that T&D network of various countries
are undergoing massive change in terms of replacement, up gradation
and fresh capacity creations. The total anticipated transmission sector
outlay of 867 Billion US$ can be viewed to have been contributed to the
tune of 20% by transmission towers as per typical cost structure of power
sector. The expected market for towers stands around 173 billion US$, by
2016-17, with largest share taken by Asia and OECD countries and this is
an indication of good export potential in these countries for transmission
towers. Also, based on information available on websites of various
domestic tower manufacture, it is expected that US from CY’ 2012
onwards will be the largest spender on T&D sectors. Given this positive
scenario, significant growth opportunities are expected in Middle East,
Africa, South Asia and CIS countries from this project.
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04.04 Availability
Tower manufacturing capacity
Transmission tower manufacturing Industry is typically very fragmented
sector marked by presence of large number of small capacity
manufacturers making the estimation of available capacity difficult.
However, some of the major player and capacities thereof are listed in
Table-04.07.
It is important to note that the available capacities are utilized to
manufacture mobile towers, microwave towers, High mast illumination
towers and substation structures too. This makes the job of assessing the
available capacity for towers production further difficult as disaggregated
production data from manufacturers are not available and thus suitable
assumptions are to be made to deduce the required figures.
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Table-04.07
Tower manufacturing capacity
Source: Indicative PGCIL data
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Capacity Utilization of Industry
From the above table, estimated allocable capacity for towers works out around
1.2 Million metric ton with average annual industry capacity utilization around
70%. With this assumption the likely availability figure for towers has been
considered as 0.84 Million Metric Ton for the year 2013-14. It has been further
assumed that in view of impetus infused in form of incentives for power sector in
recently announces budget, the orders may flow and the capacity utilization may
improve to 80 % (average) during XIIth plan and thus a figure of 0.96 Million
Metric ton/yr has been assumed during XIIth plan period.
Availability of angles for electric towers
CASE-I
Based on above approch, the angle requirement has been estimated as 0.96
Million Tons/yr for period over 2012-17. The results are summarized hereunder:
Average availability during 2012-17 0.96 Million Metric Tons/yr
CASE-II
Angles for electric towers are made from structural products in Light Merchant
Products (LMP) as well as sections in Medium Merchant Products (MMP). The
availability of angles for electric tower is derived based on the following
assumptions:
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LMP
Share of structural in LMP = 21.9% (estimated from projected values bars & rods
and structural in LMP)
Share of use for LMP in power sector = 40% of structural in LMP (applied on
projected supply of LMP)
Share of angles in LMP for power sector = 95%
MMP
Share of medium sections in MMP = 36%
Share of medium sections for use in power sector = 14%
Share of angles in medium sections for use in power sector = 90%
Total availability is assumed to increase by a CAGR of 5% during 2011-12 to 2016-
17.
Based on the above assumptions, the likely availability of angles for use in electric
towers are as follows:
Average Availability during 2012-17 0.50 Million tons/y
Total estimated availability over XIIth plan period (2012-17)
Estimated availability from the above figures of Case-I and Case-II are as follows:
2012-17 3.6 Million tons
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04.05 Resultant Gaps (-) / Surplus (+)
Based on average demand figures and average ability; the resultant gaps (-) /
Surplus (+) are summarized as below (Table-04.08):
Table-04.08
Resultant Gaps / Surpluses (Million Tons)
Year Demand Availability Gaps (-) / Surpluses (+)
DOMESTIC
2012-17 4.10 3.60 -0.5
WITH EXPORT (+20%)
2012-17 4.90 3.60 -1.3
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05. TECHNOLOGICAL CONSIDERATION
05.01 General
Installation of an Integrated Transmission Line Tower (TLT) manufacturing
unit requires analysis of following important factors such as capacity of
plant, availability of raw materials, availability of infrastructure facilities
and cost considerations
As indicated in related chapters that this plant will be a joint venture
between RINL and POWERGRID and the major input material for the unit,
i.e., black angles and billet / blooms for conversion into black angles will
be made available from RINL Integrated steel plant located at Vizag. The
capacity of proposed plant has been decided based on desk study of
requirement of TLT in the future considering the proposed massive
capacity augmentation plan in power sector. As emerged from the desk
study the plant capacity has been fixed as 120,000 t/yr. The various
components of transmission towers are angles, plates and bolts & nuts.
05.02 Process Flow
Proposed process flow is shown in the drawing
MEC/11/24/123J/TEFR/003.
The Technological unit capacity has been fixed considering the popular
plant size capacity as per existing units in India as well as abroad and the
limitation in handling no. of pieces annually in a unit etc.
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05.03 Technological Options
05.03.01 General
As indicated in the above process flow the proposed plant will produce
approximately 120,000 t/yr of TLT. The various process involved in the
production of TLT are as follows.
1. Fabrication of angles as per design drawing of TLT to produce
various parts of tower.
2. Galvanizing of various parts fabricated in fabrication unit.
3. Dispatch of galvanized tower parts to construction site.
05.03.02 Input
Transmission line tower normally requires equal angles starting from 45
to 250 mm as per IS 808 / DIN 1028 / Equivalent international standard.
Transmission tower also requires gusset plates which are fabricated from
plates of thickness from 10 mm to 40 mm.
The various angle sizes required by transmission line tower falls in the
following various categories of section products.
Light section - up to 65 mm thickness <8mm
Medium section - 70 – 110 mm thickness <12mm
Heavy section - 120 – 250 mm thickness >12mm
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The angle sizes required by transmission tower fall in light, medium as
well as heavy section range. Considering the large size range required by
transmission tower, the various input sizes of semis required from RINL
are given below:
90x90, 125 x 125, 150 x 150, 200 x 200, 250 x 250, 320 x 250 mm
The angles available in the product-mix of RINL will be procured from
RINL. For rest of the angles, semis/billets/blooms will be procured from
RINL and converted into black angles through conversion agents or black
angles shall be directly sourced from the market as per requirement.
05.03.03 TLT Fabrication Unit
The various processes involved in the fabrication are as follows:
Angles
- Angle straightening
- Punching
- Drilling
- Marking / numbering
- Shearing / band sawing
- Notching
- Bending
- Punching after bending
- Heel milling for LAP joints of angles.
Plates
- Plate shearing
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- Plate thermal cutting
- Punching
- Drilling
- Marking
- Bending
Various types of machines are available where various operations
required during fabrication can be covered in one machine with state of
art CNC machines. Sufficient numbers of automated machines with CNC
state of art technology have been envisaged to cater to the requirement
of fabrication shop to fabricate angles and plates as per requirement. We
have envisaged fabricating about 75-80% of angle sections within 120 x 12
mm and remaining angles sections in the range 120 to 250 mm will be
about 20%-25%. About 40-45% angles will be notched in the process.
About 4-6% plates have been considered for fabrication.
05.03.04 TLT Galvanizing Unit
The various processes involved in galvanizing process are as follows:
- Degreasing of tower parts with sodium hydroxide solution.
- Pickling to clean up the surface with HCL solution.
- Rinsing twice with fresh water to remove the acid content.
- Fluxing with synthetic flux to prepare surface for galvanizing
- Drying on hot plate
- Dipping in zinc bath with 99.95% pure zinc at 450°C to 465°C
temperature.
- Quenching in water.
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- Dichromating
- The galvanizing thickness is normally 460 gms per sq. meter for
members below 5 mm thickness and 610 gms per sq. metre for
members above 5mm thickness.
- With this, the finished tower parts get ready for dispatch to sites.
Considering the annual requirement of the plant a semi automatic
operation have been considered. Suitable automation in bay crane have
been considered to take care of process requirement. Galvanizing Kettle
shall be suitable for oil / gas firing. Galvanizing unit shall have requisite
provision for fume extraction and effluent treatment.
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06. SITE SELECTION AND GENERAL LAYOUT
06.01 General
Site for TLT manufacturing complex has been finalized based partly on in
house data available with MECON and partly on Site visit at Vizag. Some
major factors have been considered and conclusion has been drawn on
the ten point scale basis. The major factors considered and their ratings
are shown in Table-06.01. In absence of site visit, only quantitative
analysis has been done & no techno economic calculation has been
carried out.
Table – 06.01
Comparison of RINL site with other sites
Sl.
No.
Description of
Features
SITE-1
(Hyderabad)Rating
SITE-2
(Vizag –
outside
RINL)
Rating
SITE-3
(RINL-
Vizag)
Rating
1. Availability of
Land
Available 10 Available 10 Available 10
2. Ease of land
acquisition
May take
time and
lots of
8 May take
time and
lots of
8 Land is
already
under
10
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Sl.
No.
Description of
Features
SITE-1
(Hyderabad)Rating
SITE-2
(Vizag –
outside
RINL)
Rating
SITE-3
(RINL-
Vizag)
Rating
problems
are to be
solved
problems
are to be
solved
possession
3. Rehabilitation Few houses 7 Few houses 7 Not needed 10
4. Forest land Very small
patches
8 Very small
patches
8 Nil 10
5. Soil conditions O.k. for
medium
load
8 O.k. for
medium
load
8 O.K even
for heavy
foundations
9
6. Infrastructure Will have to
be
developed
8 Will have
to be
developed
8 Already
developed
10
7. Site
development
Required 8 Required 8 Already
developed
10
8. Distance of
Input source
340Km 6 45Kms 8 3 Km 10
9. Distance of
Despatch of
Various
Metro cities
8 Various
Metro
8 Various
Metro cities
8
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Sl.
No.
Description of
Features
SITE-1
(Hyderabad)Rating
SITE-2
(Vizag –
outside
RINL)
Rating
SITE-3
(RINL-
Vizag)
Rating
Finished
product.
and other
consumers
cities and
other
consumers
and other
consumers
Sum Total 71 73 87
Ranking III II I
On the basis of the information indicated in the above table and also that
RINL-Vizag site has added advantage of port facilities, management
control, unidirectional flow of materials such as billet, bloom, oxygen,
mixed gas and other inputs.
As such out of the three sites available, RINL site has emerged as the most
suitable site.
06.02 Location
Proposed site is located very close to the existing steel plant just outside
the plant boundary of M/s RINL in the Northern side of the existing RINL
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steel plant and very close to the existing rail gate. Adequate acquired land
is available at this site.
06.03 Road
A well developed road network exists around the site which can be
utilized for both in coming billet/bloom from the RINL plant and dispatch
of finished TLT to various destinations.
Adequate numbers of Hydras & Trucks have been envisaged for
transportation of material from one shop to the other and to & from
Intermediate Storage areas.
06.04 Water
It has been assumed that water for this site will be easily available from
dedicated bore wells.
06.05 Power
Power for the proposed plant can be made available from the existing
power grid source which can be brought to the switch yard of the
proposed plant site.
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06.06 Rational of Layout
Layout of the proposed plant has been developed keeping in view of the
following.
f) Availability of adequate land.
g) Direction of Road entry to the plant.
h) Unidirectional flow of material suiting to the sequence of process
flow.
i) Provision for future expansion.
j) Safety considerations.
k) Provision of green belt.
A total area of approximately 50 acres has been envisaged inside the
complex boundary.
Major units are: Black angle storage, Fabrication and galvanizing units,
Prototype assembly & Finished product Storage / dispatch area,
administrative building & Truck parking area.
The relative locations of various plant units have been depicted in the
drawing no MEC/11/14/123J/TEFR/001.
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Black Angle storage has been envisaged just at the entrance gate after the
truck parking area on the entry side of the TLT fabrication units for
smooth flow of Input angles. Fabrication and galvanizing units have been
placed adjacent to the storage of black angles. Finished product storage &
dispatch as well as Prototype assembly areas have been planned adjacent
to the Galvanizing units. Auxiliaries and administrative building are
planned adjacent to the main units. Suitable size truck parking unit have
been planned near the raw material entry gate as well as near finished
product dispatch gate. Just between the two gates, Green Park has been
planned. Apart from this all around the periphery of the complex green
belt has been planned.
A well planned road network has been envisaged to cater to the needs of
the various plant units.
06.07 Main features of the plant:
a) Area within the plant boundary: 50 Acres (approx.)
b) Length of boundary wall: 2.0 Km (approx.)
c) Length of road: 1.6 Km (approx.)
d) Number of Road weigh-bridge: 2
e) Number of Gates: 2
f) Number of watch tower: 7
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07 TLT FABRICATION UNIT
07.01 General
Two (2) TLT Fabrication Units of 60,000 t/yr capacity each has been
envisaged. The TLT Fabrication Units will fabricate the TLT parts as per
requirement of TLT unit.
The TLT Fabrication Units will be working for about 300 days per year and
3 shifts per day. The black angles in the product – mix of RINL will be
made available by RINL. As per the product – mix & production schedules
of RINL, approximately 30% of the angles required will be provided by
RINL. Rest of the angles will be sourced from conversion agents (for which
input billets / blooms will be made available by RINL) or other market
sources. The plates required for the production of TLT parts will be
procured from outside market sources. About 117,990 tons of angles &
6,600 tons of plates will be required annually for the envisaged
production.
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07.02 Product Mix
The product mix of TLT Fabrication units is given in Table-07.01.
Table-07.01
Sl.
No.Product
Input Size Range
(mm)
Quantity
(tons/yr)
a) Angles 45 x 45 – 250 x 250 114,000
b) Plates Up to 40mm thick 6000
Total 120,000
07.03 Major Facilities in TLT Fabrication Unit
Plant and Machinery requirement for the proposed unit has been
estimated considering product mix based on tower weight and section
wise requirement for different type of towers. It is envisaged that
generally 40% of the capacity shall be used for 400KV and 60% for 765KV
lines.
For finalization of the number and types of machine in the TLT Fabrication
unit, we have considered that about 75-80% of angle sections within 120
x 12 mm and remaining angles sections in the range 120 to 250 mm will
be about 20%-25%. About 40-45% angles will be notched in the process.
About 4-6% plates have been considered for fabrication.
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Multiple operations required during fabrication can be covered in single
state of the art CNC machine. Sufficient numbers of automated machines
with CNC state of the art technology have been envisaged to cater to the
requirement of fabrication shop to fabricate angles and plates as per
requirement.
Major facilities envisaged for the TLT Fabrication Unit with their brief
technical features are given below:
Sl.No. Equipment / facilities Technical feature
Quantity(for 1Unit)
1. CNC angle punching,
marking and shearing
line
For angles 30x30x3 to
120x120x12mm sizes 4
2. CNC angle punching,
marking and shearing
line with Notching CNC
unit
For angles 30x30x3 to
120x120x12mm sizes2
3. CNC angle punching,
marking and shearing
line (with 4 punches)
For angles 40x40x4 to
160x160x16mm sizes 2
4. CNC angle punching,
marking and shearing
For angles 40x40x4 to
160x160x16mm sizes1
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Sl.No. Equipment / facilities Technical feature
Quantity(for 1Unit)
line (with 6 punches)
5. CNC angle drilling,
marking
For angles 60x60x6 to
250x250x40mm sizes3
6. Semi Automatic heel
milling machine
For angles 40x4 to
250x40mm sizes2
7. Angle punching and
shearing machine
For angles post bending2
8. Gas cutting machine with
plasma torch
For plates1
9. CNC plate processor
machine
For Punching, marking,
drilling, plasma and Oxy
cutting of plates
1
10. CNC plate punching,
marking and drilling
machine
For plates
1
11. Semi – Automatic
punching machine
For plates1
12. Manual UniversalPunching, Stamping,Shearing, Notching for500mm plate, 150x16
For angles / plates2
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Sl.No. Equipment / facilities Technical feature
Quantity(for 1Unit)
angles13. Angle notching machines For Manual notching of
angles6
14. Radial drilling machines For Manual drilling of
angles / plates4
15. Angle heating furnaces For heating of angle
before bending4
16. Hydraulic bending
presses
For bending4
17. Plate shearing machine For Plates up to 20mm
thickness1
18. Manual Press For marking characters 2
19. Angle Grinder 5
20. Straightening Machines 2
21. Band Saw 3
22. Other manual machines
for angles & Plates,
Machine Shop
Equipment, like, shaping
machine, various
LOT
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Sl.No. Equipment / facilities Technical feature
Quantity(for 1Unit)
measuring instruments,
etc.
23. MIG Welding machine
along with its accessories
24. TIG Welding machine
along with its accessories
Adequate number of the above machines has been envisaged in order to
meet the annual capacity of the fabrication units. The production
capacities of individual machines depend primarily on the tower design,
i.e., the size of angles being processed and the number of holes / cuts /
notches required to be done on each piece. We have considered that
about 75-80% of the angles are in the size range up to 120x12mm and 20-
25% of the angles are in the size range above 120x12mm. Tower designs
with greater share of angle in bigger size range will improve the
production capacity of the fabrication units accordingly.
07.04 Process
The angles procured from RINL / from conversion agent / other sources
will be stored in the storage area. The angles will be brought from the
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Intermediate storage area to the open Input angle storage bay by trucks /
hydra as per the production planning. The Input angles will be stored in
this storage area as per the sizes / grades in the pre-designated locations.
An in-house Design department for production planning and preparation
of shop fabrication drawings has been envisaged with latest state of art
software & hardware.
Further, the angles / plates will be fed to the respective fabrication lines
as per the production planning with the help of transfer trolleys provided.
The angles will be cut into pieces, holes will be punched / drilled and the
parts will be marked as per the manufacturing design drawings. The
angles will be transported from one line to the other as per the process
requirement with the help of Bay cranes / Forklifts as per the
requirement.
The fabricated TLT parts after QA clearance will be tagged as per the
order / part number and will be sent to the Galvanizing Unit for further
processing.
07.05 Auxiliary Facilities
Auxiliary facilities such as hydraulic systems, lubrication systems, etc. will
be part of the individual machines.
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07.06 Layout
The layout of the TLT Fabrication Unit as shown in Drawing No
MEC/11/24/123J/TEFR/002 will ensure smooth and unobstructed
movement of men and materials in the Fabrication bays with minimum
handling.
The TLT Fabrication Unit complex will be mostly of steel structures and
will comprise of bays and administrative building. The shop floor will be at
±0.00 level. Major parameters of each TLT Fabrication Unit are given
below:
Sl.
No.
Bay
Designation
Bay Size
(m)
Crane
Capacity
(t)
Qty.Crane Rail
Height (m)Remarks
1.Angle Storage
Bay108 x 25 5T 1 7
Pendant
Operated
2.Fabrication
Bays
108 x 25 x
3 bays5t 3 7
Pendant
Operated
3.Finished
product
108 x 25 x
2 bays5t 2 7
Pendant
Operated
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Storage Bay
4.Administrativ
e Building
75 x 12 x 2
stories-- -- -- --
For Inter-bay transfer of angles / cut pieces of angles, sufficient number of Fork-
lifts (4 nos.) has been envisaged in the bay.
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08 TLT GALVANIZING UNIT
08.01 General
Two (2) number TLT Galvanizing Units of 60,000 t/yr capacity each has
been envisaged. The TLT Galvanizing Units will hot dip galvanize the
fabricated TLT parts.
The TLT Galvanizing Units will be working for about 300 days per year and
3 shifts per day. The TLT Galvanizing Units will use TLT parts fabricated in
the In-house fabrication unit. About 120,000 tons of Fabricated TLT Parts
will be galvanized annually for the envisaged production.
The maximum length of single part to be galvanized has been envisaged
as 8.5 m. A semi-automatic process for galvanizing the TLT parts has been
envisaged. The process of hanging the TLT parts on to the Hangers / Jigs
before Galvanizing process and removing the TLT parts from the Hangers
/ Jigs after Galvanizing process is manual. The Galvanizing process is
automated.
08.02 Product Mix
The product mix of TLT Galvanizing Unit is given in Table-08.01.
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Table-08.01
Sl.
No.Product
Size Range
(mm)
Quantity
(tonnes/yr)
a)Fabricated Angle
parts45 x 45 – 250 x 250 114,000
b)Fabricated Plate
partsUp to 40mm thick 6,000
Total 120,000
08.03 Process Sequence
The various processes involved in galvanizing process are as follows:
- Degreasing of tower parts with sodium hydroxide solution.
- Pickling to clean up the surface with HCL solution.
- Rinsing twice with fresh water to remove the acid content.
- Fluxing with synthetic flux to prepare surface for galvanizing
- Drying on hot plate
- Dipping in zinc bath with 99.95% pure zinc at 450°C to 465°C
temperature.
- Quenching in water.
- Dichromating
- The galvanizing thickness is normally 460 gms per sq. meter for
members below 5 mm thickness and 610 gms per sq. metre for
members above 5mm thickness.
- With this, the finished tower parts get ready for dispatch to sites.
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08.04 Major Facilities in TLT Galvanizing Unit
Major facilities envisaged for the TLT Galvanizing Unit with their brief
technical features are given below:
Sl.
No.Equipment / facilities Technical feature
1. Loading Hangers Adequate number of fabricated
steel hangers for loading the TLT
parts has been envisaged.
2. Degreasing Tank For cleaning the TLT parts with
sodium hydroxide solution.
3. Pickling Tank 4 nos. tanks for pickling the TLT
parts with HCl solution
4. Rinsing Tanks 2 nos. rinsing tanks for rinsing
the acid from TLT parts
5. Fluxing Tank 1 no. fluxing tank for treating
the TLT parts with synthetic flux
to prepare the surface for
galvanizing
6. Drying Hot Plate 1 no. for drying the TLT parts
before dipping into the Zinc
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bath
7. Galvanizing Kettle (Size
10.5x1.5x3)
1 no. for dipping the TLT parts in
zinc bath with 99.95% pure zinc
at 450°C to 465°C temperature
8. Quenching Tank 1 no. for cooling the Galvanized
TLT parts to below 100°C
9. Dichromating Tank 1 no. for treating the Galvanized
TLT parts with Dichromate
solution for surface protection
10. Fume Exhaust System For clearing the acidic fumes as
well as zinc fumes.
11. Effluent Treatment Plant For treatment of acidic as well
as alkaline effluents.
08.05 Process
The TLT parts fabricated in the TLT Fabrication unit, adjacent to the
Galvanizing Unit will be brought to the loading area of the preparation
bay and will be manually loaded on to the Hangers with the help of Steel
wires. The loaded hangers with counted number of pieces will then be
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transferred to the Galvanizing bay with the help of an inter-bay transfer
car.
The loaded Hanger will be taken by the automated crane in the
galvanizing bay and will be dipped in the various tanks for the durations
as entered for that particular lot in the software.
The loaded hanger after coming out of the galvanizing chamber will be
transferred back to the unloading area of the preparation bay where the
galvanized TLT parts will be manually unloaded and counted for
accounting for all the pieces initially loaded on to the hangers. The
galvanized TLT parts are further manually brushed / filed for finishing and
packaged before transferring the same to finished product storage bays.
Galvanizing kettle shall be suitable for oil/gas firing.
08.06 Auxiliary Facilities
Auxiliary facilities such as hydraulic systems, lubrication systems, etc. will
be part of the individual machines.
08.07 Layout
The layout of the TLT Galvanizing Unit as shown in Drawing No.
MEC/11/24/123J/TEFR/002 will ensure smooth and unobstructed
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movement of men and materials in the Galvanizing bays with minimum
handling.
The TLT Galvanizing Unit will be mostly of steel structures and will
comprise of bays and administrative building. Fume exhaust system has
been envisaged and is located by the side of the building. The shop floor
will be at ±0.00 level. Major parameters of the TLT Galvanizing Unit
complex are as given below:
Sl.
No.
Bay
Designation
Bay Size
(m)
Crane
Capacity (t)Qty.
Crane Rail
Height (m)Remarks
1.Preparation
Bay144 x 25 5t 2 7
Pendant
Operated
2.Galvanizing
Bay144 x 25 2x4t 2 7
Pendant
Operated
3.Galvanizing
Bay144 x 25 2x5t 1 7
Pendant
Operated
5 nos. Transfer trolleys for transferring fabricated parts from Fabrication units to
galvanizing unit and for transferring Galvanizing parts from galvanizing unit to
finished product storage bays have been envisaged.
2 nos. Transfer car for transferring loaded hangers to and from galvanizing bays
have been envisaged.
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09 ELECTRICS & AUTOMATION
09.01 Power requirement
The estimated power requirement of the proposed “Integrated Complex to
manufacture Transmission Line Towers” is 3.5 MW.
MD (MW) Annual Energy Consumption in Million Units (MU)
3.5 4.5
09.02 Source of Power supply:
Power requirement for the proposed plant shall be met preferably through 11 kV
feeders drawn from the nearest APSEB substation.
09.03 Power Distribution scheme
As described earlier, Power requirement for the proposed TLT complex shall be
met from 11 kV feeders drawn from the nearest APSEB substation. Presently, the
power is assumed as available at 11kV at Substation.
Two (2) nos. outgoing feeders of 11 kV Substation shall be used for tapping 11 kV
power supply and same shall be taken to new 11kV switchyard located near
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newly proposed “Complex to manufacture Transmission Line Towers” thro new
intermediate transmission line towers using new transmission line conductors.
The downstream power distribution network comprises 11 kV / 415 V
transformers of appropriate ratings to meet the requirements of loads.
The proposed power distribution arrangement in phase wise manner is described
below:
Capacitor bank with reactors has been envisaged to take care of voltage
fluctuations, reactive power compensation and suppression of harmonics. Power
factor compensation has been foreseen to achieve overall power factor in the
region of 0.9 and above.
Main Plant Unit11 / 0.415 kV Distribution Double
ended Substation
Water supply / ETP / Fire fighting 2x1.0 MVA AN type
Gas/oil/ Compressor /cranes / air
cond./Ventilation / Lighting
2x1.0 MVA AN type
TLT Fabrication Units 2x1.6 MVA AN type
TLT Galvanizing Units 2x1.6 MVA AN type
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09.04 Design considerations
The power distribution network has been designed as a radial system, with two
alternative supply feeders to the load centre.
The design of power distribution system and selection of equipment has been
done based on the considerations of safety, reliability, ease of operation &
maintenance as well as convenience of future expansion.
The equipment shall conform to relevant Indian Standards, IEC specifications and
other applicable code of practice to meet the operational requirements and to
ensure reliable and trouble free service in the plant.
Basic Design Parameters
Incoming Power supply : 11 kV, 3 Ph, 50 Hz.
Drives and other consumers : 415 V, 3 ph, 50 Hz
Illumination and small power : 240 V, 1 ph. 50 Hz
Control power supply AC : 240 V, 1 ph, 50 Hz
DC : 220 V & 110 V
System Earthing
- 415 V : Effectively earthed
Symmetrical Short Circuit level
- 11 kV bus : 31.5 KA, 3 sec.
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- 415 V bus : 50 KA, 1sec.
09.05 Major Facilities
09.05.01 11 kV Outdoor Switchyard
Two (2) nos outgoing feeders of existing 11kV Substation has been
envisaged for tapping existing 11kV power supply and same shall be taken
to newly proposed “Complex to manufacture Transmission Line Towers”
thro new intermediate transmission line towers using new transmission
line conductors.
The equipment design is based on capacity to withstand Short circuit
current of 31.5 kA, 3 second. Necessary system protections such as
distance protection, bus differential, transformer differential, over
current, earth fault etc have been foreseen. Aluminium pipe / ACSR
conductor has been considered for bus bars and interconnections.
09.05.02 HT Switchgear
The 11 kV switchgear shall be indoor type sheet metal clad, draw out type
comprising of VCB circuit breakers and shall be provided with necessary
protection, control gear, metering and audio-visual alarm annunciation
system. The circuit breaker mechanism shall be mechanically and
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electrically trip free. The circuit breakers shall be electrically operated,
stored energy type.
09.05.03 415 V Switchgear
The 415 V switchboards shall comprise of air circuit breakers, in draw out
design and multi tier formation. The switchboard shall have two bus
sections and a bus coupler breaker with provision for auto changeover in
the event of loss of power of any one-bus section.
The circuit breakers shall be electrically operated and equipped with
microprocessor / static type direct acting releases for over load and short
circuit as well as earth fault protection.
All motor control centers (MCCs), large drives (above 110 kw) and power
distribution boards (PDBs) shall be supplied power from the 415 V
switchboard. The 415 V switchgear shall confirm to relevant IEC
specifications.
09.05.04 Transformers
The transformers shall conform to relevant IS and IEC specifications. The
11 kV transformers shall be copper wound, oil immersed, three phase and
ONAN design.
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Off circuit tap-changers shall be provided for 11/0.415 kV distribution
transformers.
All the standard accessories such as conservator, breather, Buchholz
relay, OTI, WTI, oil level gauge, valves, explosion vent etc. shall be
provided for all the transformers.
09.05.05 Cables
Power inside the plant shall be distributed through cables to various
premises. Inter plant cabling has been envisaged through cable tunnel/
cable Trenches. Wherever necessary and where the cables are in small
number, these will be directly buried underground. Wherever cables are
in large number, concrete channels shall be used. GI pipes/ pipe blocks
shall be used at road crossings and paved area for protection of cables
against mechanical damage. Inside the substations and covered premises,
the cables shall be laid in basement or in concrete channels (over cable
supporting structures) or on columns and other available structures.
Power cables shall be laid on ladder type GI cable trays, whereas control
cable shall be laid on perforated cable trays.
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All 11 kV cables shall be heavy duty, XLPE insulated, PVC sheathed multi
core, aluminum conductor steel wire armoured and shall be suitable for
resistance earthed/unearthed system.
Cables for 415 V systems shall be heavy duty, 1.1 kV grade, PVC insulated
PVC sheathed aluminum conductor, armoured / unarmoured as required.
The control cables shall be multi strand copper conductor, PVC insulated
and PVC sheathed with minimum cross section of 2.5 sq.mm /1.5 sqmm
for voltage circuit.
The HT cables, LT power and control cable shall confirm to relevant IEC
specifications.
09.06 Environmental conditions:
The following environmental conditions have been considered for
equipment design:-
Electrical equipment located outside Electrical Control Rooms (ECRs)
shall be designed for maximum ambient temperature of 50C and
maximum relative humidity of 95% (both not occurring
simultaneously).
Electrical equipment located inside ECR shall be designed for maximum
Ambient temperature of 45C and maximum RH of 95 % (both not
occurring simultaneously.
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Electronic equipment such as digital invertors / VFDs etc. have been
envisaged to be installed inside air conditioned enclosures within ECR
with an ambient temperature of maximum 35 C.
Electronic equipment such as PLC’s , PCs etc. have been envisaged to
be installed inside air conditioned enclosures within ECR with an
ambient temperature of 21-24C. Pulpits has also been envisaged to be
air conditioned with temp at 21-24C.
09.07 Power Distribution Facilities
.01 HT Voltage 11000V AC +6 –9% %, 3 phase
.02 LT Voltage 415 V AC +/- 10 %, 3 phase
.03 Rated frequency 50 Hz +3 -5%
.04 Control voltage 240V AC through 415 V / 240 V
transformer
.05 PLC Inputs/outputs 24 V DC, 4-20 mA
.06 Solenoids 24V DC
09.08 Shop Electrics & illumination system:-
The following shop electric facilities have been considered covering broadly
the areas as given below: -
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i. Illumination system.
ii. LT sub distribution boards
iii. Welding sockets.
iv. Crane power feeding system
v. Motor control centers / Power distribution Board / Main lighting
Distribution board with necessary Local control stations / control desk
for the mill /lines aux. viz. Air conditioning & ventilation system, water
supply system, Compressed air system, Material handling equipment
etc. The ventilation and air-conditioning system for electrical premises
shall be generally located in the respective basement floor.
vi. Complete LT/HT power cables, control cables, screened cables/ special
cables.
vii. Cable structures, racks, trays, GI pipes etc. including various erection
accessories & materials for the complete laying & erection of electrical
equipment.
viii. Equipment earthing system including separate electronic earthing for
PLC/ Electronic equipment.
ix. Lightning protection of building/ structures
x. Fire detection system.
xi. Automatic detection for ECRs , pulpits , oil cellars & transformer
rooms , cable tunnels and sub-station.
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xii. Voice communication equipment for all facilities like ECRs, pulpits, oil
cellars, sub-station, pump house, Shop floor area, shift rooms etc.
The lighting system inside and outside plant units has been considered taking
into consideration the architectural arrangement, building dimensions
including mounting height, environmental considerations, ease of
maintenance and reliability of the lighting distribution network. The plant
shall be provided with necessary indoor and outdoor lighting system.
Plant Grid earthing system has been considered for the safety of electrical
equipment and personnel. Parts of all electrical equipment and machinery
not intended to be alive shall have two separate and distinct earth
connections each to conform to the stipulation of the Indian Electricity Rules
and apparatus rated 240V and below may have single earth connections.
Electronic earthing has been considered if separately required for
automation equipment such as PLCs/ HMI etc. Lightning Protection System
for each building /bay has been considered against lightning, for the safety of
building, equipment and personnel.
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All LT power and control cables have been considered which shall be of PVC
insulated and sheathed, armoured / unarmoured of 1100V grade. Power
cables shall be of size 6mm & above will be of aluminium. Control cables
shall be of copper conductors. Special cables have also been considered
wherever required.
09.09 DG Set
A DG set of adequate capacity has been envisaged to cater to emergency
power requirements of the Complex.
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10 PLANT SERVICES & UTILITIES
10.01 Water Supply Facilities
10.01.01 General
Water for the proposed COMPLEX FOR MANUFACTURING
TRANSMISSION LINE TOWERS will mostly be required for direct and
indirect cooling of plants/ machines/ equipment with a part to be
consumed for drinking and sanitation purpose and other direct process
and general purpose needs. Individual recirculation system has been
envisaged for water systems of various plant units to effect extensive
recycling and reuse of return water from plant processes after necessary
treatment and conditioning.
10.01.02 Requirement of Water
The total make-up water requirements for the proposed integrated
Complex for manufacturing Transmission Line Towers is estimated as 5
m3/h (Approx.).
10.01.03 Breakup of Circulation Water Requirement
The unit wise break-up of make up water and circulating water
requirements of various plant units of the proposed Plant are indicated in
Table-11.01.
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Table – 10.01
Estimated Water Requirement (m3/hr)
Sl.
No. Consumer /unitsCirculating water
M3/hr
A TLT FABRICATION UNIT (2 Nos.)
Industrial Water 20
B HOT DIP GALVANIZING UNIT (2 Nos.)
Industrial Water 30
C COMPRESSOR 50
Total Water Circulation (m3/hr) 100
Drinking water requirement for plant = 50 m3 / day
Estimated Make-up water requirement will be of the order of 5 m3/hr.
10.01.04 Source of Fresh Make-Up Water
The requirement of fresh make-up water for the proposed Plant will be
met by a dedicated borewell, subsequently water treatment plant shall be
planned to achieve the desired quality before pumping to the proposed
units.
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10.01.05 Proposed Facilities
To cater to the water requirement of the proposed Plant, the following
water system facilities have been envisaged.
i) Make-up water system
Industrial quality treated water, drawn from the make up water
treatment plant will be provided to all the re-circulation systems as well
as other direct consumers of proposed Plant.
ii) Drinking Water System
Treated water will be further processed to have drinking quality water.
10.01.06 Water Re-circulation Systems
The following water re-circulation systems have been envisaged.
a) Clean water re-circulation system for TLT Fabrication unit, Hot Dip
Galvanizing Unit, compressor.
b) Contaminated water system for TLT Fabrication unit, Hot Dip
Galvanizing Unit.
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10.01.07 Water pollution control and conservation
Extensive recycling has been adopted in the design of plant water
systems. Quality of circulating water will be maintained through dosing of
conditioning chemicals for controlling corrosion, scale deposit and
microbiological growth.
Waste water from treatment plant will be neutralized before discharge
from the plant. The sludge arising out of different circuits will be disposed
of at suitable location.
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10.02 Air Conditioning & Ventilation System
General
Ventilation and air-conditioning systems are proposed to provide proper
working conditions necessary for maintaining environment compatible
with human hygienic requirements and to maintain conditions necessary
for proper storage of materials and working of plant and equipment. The
ventilation and air-conditioning systems generally include one or more
items of equipment and accessories such as fans, air filters, air washers,
air-conditioning units, duct work, pumps, cooling tower, air supply grills,
dampers, insulation, instrumentation and controls, electrics, etc.
Ventilation and air-conditioning systems will be designed considering the
climatic conditions prevailing in the region and the plants will generally be
installed in separate plant rooms independent of the served premises. The
plant rooms will be provided integral with and adjacent to the served
premises at proper locations on considerations of convenience of routing
of ducts/pipes, availability of fresh uncontaminated air and creating least
disturbance to the adjacent premises in terms of vibration and noise.
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Ventilation and air-conditioning systems will be provided with adequate
measures for safety and fire fighting for fire hazardous areas and will be of
flame proof/explosion proof construction.
10.02.01 Ventilation facilities
Depending upon the specific requirement, the shops/buildings will be
provided with either exhaust ventilation or dry plenum ventilation or
washed air ventilation system. The system design will take into account
the requirements of air change as well as excess heat removal. Filters will
be provided with plenum systems. By plenum ventilation, the served
premises will be pressurized to 2-3 mm WC to avoid ingress of dusty air.
The details and types of system proposed will be as shown in the Table
below.
Sl.
No.
Location / Shop Facilities
a) Electrical Control Rooms, Main
substation building
Air washer comprising air
washer, centrifugal fan,
pumps (100% standby),
filter, piping & ducting
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network, etc.
b) Transformer pens for ECR, Water
Pump House, Compressed Air
Station, & various laboratory
premises like Mechanical Testing &
Sample preparation room
Tube axial based Dry
Ventilation System
10.02.02 Air conditioning facilities
Premises requiring stringent environmental conditions of temperature and
humidity will be air conditioned. The selection of the type of air conditioning
system depends on the specific requirement of the application in terms of
cooling capacity, temperature, humidity and freedom from dust as well as
the size and location of the premises. The air conditioning system shall
maintain a temperature of 23 + 2 0 C and relative humidity 55 + 5 %. The
types of air conditioning system proposed are as indicated below:
Sl. No. Location/Shop Facilities
a) MCC cum automation room Water cooled Packaged
air conditioners with
100% standby
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10.03 Fire Fighting Facilities
10.03.01 General
Many working premises in plant have hazardous and fire prone
environment. To protect the working personnel, equipment and
machineries, adequate safety and fire fighting measures have been
planned for the proposed plant.
10.03.02 Fire Protection Facilities
In order to combat any occurrence of fire in plant premises the following
fire protection facilities have been envisaged for the various units of the
plant.
10.03.03 Portable fire extinguishers
All plant units, office buildings, stores, laboratories, etc will be provided
with adequate number of portable fire extinguishers to be used as first
b) Control Pulpits, Control room and
office area (main substation
building), OES room & In-charge
room in laboratory premises
Ductable Split air
conditioner / Split air
conditioner
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aid fire appliances. The distribution and selection of extinguishers will be
done in accordance with the requirement of IS: 2190-92.
10.03.04 Hydrant system
A water based hydrant system both yard hydrant and internal hydrant
network system has been envisaged for the plant. Internal hydrants will
be provided at suitable locations and at different levels inside the major
plant units. Yard hydrants will be provided normally along the road and in
the close vicinity of the units to meet the additional requirement of water
for extinguishing fire.
10.03.05 Automatic fire detection system
Unattended and vulnerable electrical premises like electrical control
rooms, cable tunnels, MCC, transformer rooms, switch gear rooms, etc.
will be provided with automatic fire detection and alarm systems.
10.03.06 Automatic extinguishing system
Installations like transformers of MSDS will be provided with fire
detection and emulsifier (high velocity water spray) system.
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10.04 Compressed Air System
A centralized compressed air station has been envisaged in order to meet
the requirement of industrial and instrument quality compressed air for
the proposed plant.
10.04.01 Equipment Description
A compressed air station consisting of compressors, air dryer units,
receivers and associated piping have been envisaged to fulfill the
requirement of industrial quality (Total air 12 Nm³/min) and instrument
quality (Total air 3 Nm³/min) compressed air at a discharge pressure of 4 -
6 kg/cm2(g) for the entire plant.
The details of Compressors and Air Dryer Unit are as follows:
a. Compressors
Air Volume Flow 15 Nm3/min each
Discharge Air Pressure 6 kg/cm2 (g)
No. of Compressor 2 (1w+1s)
Type of Compressor Oil free two stage, water cooled package
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type screw compressor.
Service requirement Continuous
Installation Indoor
b. Air Dryer Unit
The Air Dryer units will be of Heatless type. The selection of air dryer
units will be such that performance of the same will not be affected
at different loads of the system. Dryer will be installed adjacent to
the compressor. The system will be designed such that under no
circumstances the dry air supply will be stopped. Air dryer unit will
supply instrument quality dry air to various units of the complex.
The dryer will be installed along with all necessary auxiliaries. The
operation and control of the dryers will be fully automatic. The
details of air dryer unit will be as follows:
Type Heatless type Air Dryer
Quantity 2 (1w+1s)
Air volume flow (each) 4 Nm3/min.
Inlet air pressure 6 Kg/cm2 (g)
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Service duty Continuous
b. Air Receiver
Industrial Air Receiver - 1no.
Capacity - 3 m³ at 6 Kg/cm²(g)
Instrument Air Receiver - 1 no.
Capacity - 1 m³ at 6 Kg/cm² (g)
10.04.02 Location of Compressed Air Station
The instrument air compressors and the service air compressors will be
located in a common air compressor cum air drying building of RCC
construction. The building will be located near main plant. The
distribution of compressed air, both instrument and service will be done
through separate pipeline network. Service air pipeline system will be
provided with moisture drain facilities.
10.04.03 Electrics
Necessary electrics viz. switchgear, MCC, cabling, controls, illumination,
earthing etc. have been envisaged.
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10.04.04 Controls & Instrumentation
Microprocessor based control & Instrumentation system will be provided
for smooth and efficient control and monitoring of the compressors.
Independent instrumentation panels along with mounted instruments will
be provided for each compressor for measurement and control of process
parameters, alarm and annunciation for abnormal condition and safety
interlock.
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10.05 Inter Plant & In-Shop Piping Network
10.05.01 General
Inter-plant piping network will be provided with supporting structures for
supply of compressed air, instrument air and fuel oil to meet the process
requirement from compressed air station and fuel oil installation.
The interplant piping network shall consist of a common trestle / stockade
/ bridge carrying pipes from sources to consumers. In shop piping
network, consist of pipes carrying various fluids, will be supported from
building column / structures.
Approach ladders, hand railings etc will be provided for valve operation
on overhead interplant & in shop piping network.
Compressed air service pipes will be of IS-1239 ERW, CI lubricated taper
plug valves, CI ball valves along with moisture traps and Y-strainers.
Furnace Oil pipes and fittings shall be ERW as per IS: 1239(Part –I) and IS:
1239(part-II) respectively.
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10.05.02 Design Basis
Plant grade & instrument grade compressed air shall be made available at
outlet of compressor room with the following parameters:
Plant grade compressed air
Pressure - 4 to 6 bar (g)
Temperature - Ambient
Usage - Intermittent
Instrument quality air
Pressure - 4 to 6 bar (g)
Temperature - Ambient
Usage - Continuous
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10.06 Fuel Gas / Oil Handling Facilities
10.06.01 General
CO Gas has been proposed to be utilized as fuel for Heating Furnaces in
the Fabrication Unit and for the Galvanizing Unit.
CO Gas will be tapped from RINL’s existing line and pipeline for
transporting the required quantity along with Nitrogen Line for purging
will be laid from the tapping point to the site.
In addition to above, provision for use of Furnace oil in case of shortage /
disruption of CO Gas supply has also been envisaged.
10.06.02 CO Gas requirement
The requirement of CO Gas for the, Heating Furnaces in the Fabrication
Unit and for the Galvanizing Unit has been estimated based on specific
consumption per ton. Hourly consumption by will be around 1100
Nm3/hr.
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10.06.03 Proposed Facilities
a. CO Gas Pipeline
CO Gas will be tapped from RINL’s existing line and pipeline for
transporting the required quantity along with Nitrogen Line for
purging will be laid from the tapping point (approx. 3 km away) to
the site. The pipes will be laid on structural trestles as per the
relevant standards.
b. FURNACE OIL Storage Tanks
For storage of furnace oil, it has been envisaged to provide 2 (two)
fabricated cylindrical vertical mild steel tanks each of capacity 100
kL. The tanks will be designed as per IS: 803-1976. Each tank will
be provided with all standard accessories and fittings.
The tanks will be fitted with followings:
- Inlet, outlet, overflow, drain and vent connections.
- Manholes (roof and shell).
- Filling nozzle.
- Float type level indicator.
- Roof railing.
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- Ladder with railing.
- Lightning arrestor.
- Inside cat ladder.
- Outside hand railings on stair cases.
- Pockets for instruments.
- Drain valves.
- Tank earthing.
Corrosion allowances will be 1.5 mm.
c. Fuel oil decanting / unloading facilities
Oil will be received at site by road tankers. Necessary unloading
facilities will be provided for unloading of oil from road tankers
into the storage tanks. 2 (Two) nos. positive displacement pumps
(1W+1S), of capacity 10 m3/h each will be provided along with
strainers for unloading.
d. Fuel oil supply to the consuming units
Two (2) nos. positive displacement delivery pumps (1W + 1S) will
be installed for meeting the requirement of furnace oil delivery to
the consuming units through ring main system. Adequate
provision will be kept in the design of piping system which will be
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laid overhead and in-shop piping will be supported on shop
columns/ building structure.
Duplex filters of 500 micron for unloading pumps & 250 micron for
delivery pumps at suction side of the pumps will be installed.
All the above pumps will be complete with:
- Non return valve at discharge end.
- Safety devices.
- Lubricating system.
- Base plate.
e. Instrumentation & Control
All standard instrumentation and control facilities as required for
safe, smooth and trouble free operation of the bulk fuel oil system
will be installed.
f. Fire fighting facilities
Fire fighting facilities / fire safety hazard measures suiting to bulk
fuel oil storage and associated handling facilities will be provided
as per applicable codes and standards.
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11 QUALITY CONROL FACILITIES
11. 01 Objectives and scope
The proposed steel unit to produce transmission line towers (TLT),
being set up by joint venture plan of Rashtriya Ispat Nigam Ltd. (RINL),
Visakhapatnam and Power Grid Corporation of India Ltd. (POWERGRID)
will produce high quality galvanized transmission line towers according
to the stipulations of various national and international standards. In
order to achieve this objective, efficient and stringent quality assurance
measures are to be enforced at every stage of production. Quality
assurance can be implemented effectively in the form of analyses and test
results which can be provided only by well-equipped laboratories
entrusted with day-to-day quality control at all stages of processing and
quality evaluation of finished products.
The laboratory will, therefore, have the following responsibilities.
- Collection and preparation of samples
- Analysis and testing of intermediate and finished products
- Feedback to the main production units to enable them to ensure
corrective measures in a short time to eliminate process irregularities
and rejection of costly intermediate / finished products
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- Development of new products
- Investigation of customer complaints for addressing them effectively
11.02 Planning of laboratories
Keeping the above in view, one well-equipped quality assurance
laboratory, catering to the quality assurance requirements for the
proposed TLT unit have been envisaged. This laboratory will be
provided with the following sections:
- One mechanical testing and product analysis section, catering to the
quality requirements of the input black angles.
- Section for in-process inspection during fabrication
- One galvanizing unit section catering to the requirements of the
galvanized TLT products
All these sections will be located in a building at a suitable location.
11.03 Sample transportation
Samples for mechanical testing as well as samples of galvanized products
will be transported manually to the proposed quality assurance
laboratory for carrying out various tests.
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11.04 Service facilities
The laboratory will be provided with service facilities like power, water,
compressed air, exhaust ventilation, air conditioning, etc. as required.
Persons with adequate knowledge will be deployed to man those
laboratories.
11.05 Functions, activities and functional sections of the quality assurance
laboratory
11.05.01 Functions
To carry out sample preparation and mechanical testing (e.g.
tensile, bend, impact, hardness, etc. ) of the rolled products
To carry out instrumental analysis of rolled products
To carry out testing of the galvanized products
Functional sections
Mechanical testing section
Mechanical testing sample preparation section
Product analysis section
Galvanized product testing section
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The mechanical testing section will be provided with universal testing
machine, impact testing machine, hardness tester, etc.
The mechanical testing sample preparation section will be provided with
semi-automatic band saw, pedestal grinder, lathe machine, profile
projector, etc.
The product analysis section will be provided with optical emission
spectrometer along with the sample preparation equipment.
The galvanized product testing section will be provided with coating
thickness tester, atomic absorption spectrophotometer, coating weight
determinator, etc.
11.06 Laboratory building
A RCC building has been envisaged for quality assurance laboratory.
This laboratory building shall be provided with necessary service facilities.
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12 CIVIL & STRUCTURAL WORKS
12.01 Civil Engineering Works
12.01.01 Scope of Work
The Civil works consists of site preparation, providing foundations of Main
building for Fabrication Unit, Galvanizing Unit together with equipment
foundations required and associated works for all plants, auxiliary
buildings, electrical control rooms, transformer rooms, laboratory,
compressed air station, pump house, MSDS, water supply facilities etc
suiting to the requirements of TLT Manufacturing Complex and other
service facilities like drainage, sewerage, roads, boundary fencing, site
leveling etc.
12.01.02 Topographical Feature of Site
The proposed TLT Manufacturing Complex is to be located in an open
space within the acquired place of RINL.
12.01.03 Soil Condition
The detailed investigation on soil at the proposed site is yet to be
conducted. Hence pile foundations are not envisaged and open
foundations are assumed.
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12.01.04 Design Features
The Civil engineering design will be based on norm laid down in relevant
specifications of the Bureau of Indian standards and National building
code. All RCC work will be generally of minimum M25 grade concrete and
reinforcement shall be of high yield strength deformed TMT bars. All
underground pits, basements etc will be designed for water tightness.
The building structures will be designed for wind and seismic loads along
with technological loading as per relevant IS codes and practices. All
buildings will be of R.C.C framed construction with filler brick wall.
Concrete grade
Following concrete grades will be adopted for the project.
Design mix concrete will be used for all RCC works.
M-25 RCC works for all foundations/substructures, superstructure
elements of all plant buildings
M-20 For drains, pavement. flooring , pits, etc.
For PCC works
M-7.5 Lean concrete below foundations, etc.
M-10 and For PCC works in drain, screed concrete, grade floor, etc.
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M-15
Building material
Cement - In general cement has been considered to be Ordinary Portland
Cement or Blast furnace slag cement. In special cases rapid hardening
portland cement, slag cement sulphate resistant cement, etc. may be used
as per requirement.
Reinforcement steel for RCC - For all RCC work, reinforcement bars has
generally been considered to be of high strength deformed bars(TMT bars
of Fe 500) conforming to IS: 1786-1985.
Brick masonry work
Brick has been considered to be locally available best quality conforming to
the requirements of IS: 1077 for common burnt clay building bricks. (Grade
M-5).
12.01.05 Constructional Features
Reinforced cement concrete work will be generally of cast-in situ except
in specified areas e.g., precast cover slab, septic tanks, inspection
chambers, etc. Ordinary Portland cement/Blast furnace slag cement will
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generally be used. All construction works shall conform to prevailing
standards and practices.
12.01.06 Floor and Hard Standing
Flooring will be provided to suit the functional requirement. Ground floor
of main shop buildings will be of RCC laid over a compacted crushed stone
/ stone boulder. For heavy duty flooring, hard topping will be provided.
12.01.07 Finishing
Walls will be plastered with cement mortar 1:6. Plaster of pairs will be
used over cement plaster where superior finishing will be envisaged.
Generally interiors of buildings will be finished with 3 coats of white wash
/ distemper and the exterior will be finished with 2 coats of approved
snowcem over a base coat. Superior wall & ceiling finished like acrylic
emulsion paint will be used as necessary.
12.01.08 Roads
Roads will be of 7m and 4m wide with berms on either side. RCC Side
drains on either side of 7m and 4m wide road will be provided. Roads will
be of bituminous (WMM type) confirming to MORT&H specifications.
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12.01.09 Storm Water Drainage
Masonry drains of adequate size will be provided around the buildings
which will be suitably connected to the area drainage system. Concrete
drains will also be provided around structural buildings & on either side of
roads and with provision of pipe culverts at the road crossing. Storm
water will be suitably disposed.
Septic tank and soak pit concept at unit locations have been envisaged for
treatment of faecal sewage complex.
12.01.10 Construction Material and Availability
Construction materials will be procured from the nearest available source.
12.01.11 Standard and codes of practices
Mainly following IS codes will be referred in general:
IS :456-2000 Code of practice for plain and reinforced cement concrete.
IS : 875-1987 Code of practice for design loads for buildings and
structures.
IS : 2974 Code of practice for design and construction of machine
foundations
IS : 3370 Code of practice for concrete structures for the storage of
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liquid
IS: 1893-2002 Criteria for earthquake resistant design of structures.
General provisions and buildings.
Apart from the above, wherever necessary other relevant Indian Standard
Code of practices/IRC standards has been considered as per BIS.
12.02 Structural Works
12.02.01 General
Steel structural work will include supply, fabrication, erection & painting
of all structures of the following units:
a) TLT Fabrication Unit
b) TLT Galvanizing Unit
c) All related Piping support structures
d) Other Miscellaneous structures
The structures will include building structures, pipe trestles etc. for the
TLT Manufacturing Complex.
12.02.02 Design Parameters
Structures made of structural steel will be designed as per IS: 800-1984.
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Loading will be taken as per IS: 875 – 1987 (Part 1, 2, 3 and 5) in addition
to the technological loads indicated by the equipment
manufacturer/supplier.
Seismic loads will be taken from IS: 1893 – 1984.
12.02.03 Material of Construction
The material for the structures will be designed as follows:
a) All steel rolled sections and plates will conform to IS:2062 (Grade
A).
b) Chequered plate will conform to IS: 3502 – 1994.
c) Steel tubes for handrail will conform to IS: 1161 – 1998.
12.02.04 Method of Construction
Steel structures to be fabricated will generally be of welded construction.
Covered electrodes will conform to IS: 814 – 1991. Elements will be
fabricated in largest possible dimensions optimal with the transport
requirement so as to minimize site work. Site connection will be either by
permanent bolts or by erection bolts followed by site welding.
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12.02.05 Fabrication
Fabrication of structures will conform to IS: 800 – 1984 and other relevant
standards therein.
12.02.06 Erection
Erection will be carried out as per applicable standards, drawings,
specifications and regulations. The erection tolerance will be within the
standard specified limits.
12.02.07 Painting of all Structural Steel Work
The Grade of surface preparation will be as per relevant Indian Standard.
Structures will be applied with two coats of primer and two coats of finish
paint. Primer shall confirm to Red Oxide Zinc Chromate (IS-2074). The
finish paint shall be synthetic Enamel Paints confirming to IS-2932. The
DFT per coat will be 25 to 30 microns.
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13 MANPOWER REQUIREMENT
13.01 Manpower
Meticulous distribution of manpower is essential for uninterrupted
operation and proper maintenance of plant facilities. For the proposed
plant, the manpower requirement has been estimated based on the
following considerations:
- Production shops and their capacities.
- Type of equipment proposed for the main production shops and
corresponding auxiliary / services facilities.
- Degree of automation and mechanization envisaged in different
units.
- Extent of manning required for each equipment.
- Number of operating shifts.
- Supporting personnel for weekly off and leave reserves.
The manpower requirement, thus estimated, is given in table – 13.01
Table – 13.01
Estimated Manpower Requirement
Sl. No. Unit Number
1. TLT Fabrication Unit 54
2. TLT Galvanizing Unit 36
3. General administration and
miscellaneous10
Total 100
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The break-up of total manpower requirement in different categories is
given in Table – 13.02.
Table – 13.02
Category wise Requirement of Manpower
Sl. No. Category Number
1. Executives 25
2. Non – Executives 75
Total: 100
The above manpower may be suitably redeployed from among the
employees of the JV partners.
However, the activities related to handling, loading / unloading to
respective machines as well as for cleaning, maintenance, etc. shall be
suitably outsourced as per the actual requirement. It is envisaged that
required labour for these activities shall be outsourced on tonnage basis
depending upon the quantum of plant work load.
13.02 Training
Keeping in view the magnitude of operation of the proposed plant,
advance training of personnel in key area is envisaged so that adequate
number of trained personnel is made available at the time of
commissioning of the plant and during subsequent production stages.
The type of facilities envisaged for the proposed plant is already under
operation for quite a long time in the country’s existing TLT
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manufacturing units. Training of plant personnel may thus be planned in
these plants.
A good number of plant personnel will also get in-house and on-job
training during trial runs and commissioning of the proposed TLT
Manufacturing Complex.
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14 PROJECT IMPLEMENTATION
14.01 General
The project envisages setting up of integrated complex to manufacture
transmission line tower by M/s RINL & POWERGRID at Visakhapatnam.
The major Facilities envisaged are indicated below for reference:
TLT Fabrication Unit
Hot Dip Galvanizing Unit
In addition to the above technological units, suitable supporting facilities
have been envisaged like raw material handling system, compressed air
facilities, power distribution system, shop electrics, illumination system,
water supply system, air conditioning & ventilation system, central stores
and repair shop, laboratory, telecommunication facilities, effluent
treatment facilities, fire detection and alarm system etc.
The project has been planned to be completed in 16 months from “Zero
date” which is reckoned as “Start of ordering of Main Technological
Units”.
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With a target of early realization & stabilization of manufacturing
facilities, it has been foreseen to stagger the implementation of proposed
Fabrication & Galvanizing Units. In this staggering process, one unit each
for Fabrication & Galvanizing may be commissioned first with the Input
Angles from RINL / Market as per the requirement and availability. The
second units for Fabrication & Galvanizing will be subsequently
commissioned.
This staggering of commissioning of different units will facilitate the JV in
two ways:
Stabilization of Fabrication & Galvanizing process / machines.
Unit will start producing required TLT parts to meet the huge
market demands. This will establish the standing of this complex in
the market before the Integrated Commissioning of Complex.
However, the execution of the proposed project would call for meticulous
planning, monitoring and control during engineering, procurement and
construction stage. Salient aspects relating to project implementation
strategy are covered in this chapter.
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14.02 Phase wise Volume of work
Preliminary estimate of the volume of work involved for the project is
furnished below:
Volume of Work
The above estimates, however, are tentative at this stage, and are
furnished to facilitate advanced planning. These will be updated
progressively during the detail engineering and work execution phase of
the project.
14.03 Implementation Schedule
The overall implementation schedule for the project, taking into account
the facilities proposed, is given in Drg No. MEC/123J/11/PY/01(R-3).
According to this the overall project will be commissioned in 16 months
Sl.
No.
Item Unit Quantity
1. Concreting (RCC) m3 20,000
2. Steel structures tons 3,200
3. Plant & equipment tons 2,000
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time from the zero-date of the project to attain the ultimate capacity of
the plant.
To facilitate the commissioning of the overall plant in stipulated time,
readiness for cold test of the major units as per proposed schedule has
been indicated in the following table.
Unit
Completion Milestone
(months from “zero-
date” of the project)
Ready for Cold Test - Auxiliaries for
Fabrication & Galvanizing Unit
14-15
Ready for Cold Test - Tower Fabrication
Unit
15
Ready for Cold Test - Hot Dip Galvanizing
Unit
15
Testing, Trial-Run & Integrated
Commissioning of Fabrication &
Galvanizing Unit
15-16
14.04 Implementation Plan
With the Project Approval by competent Authority, the preparation of
tender documents and invitation of bids, scrutiny and finalization of
contracts of technological packages shall be completed within 4 months
prior to the start of zero-date.
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With the “zero-date” set as above, it is planned to complete the basic
engineering and approval within 5 month of the project. Preparation of
specifications / tender documents for auxiliaries units and services has
been planned to be undertaken from 2nd to 6th month, so that their order
placement can be completed by 9th month. The detailed design and
engineering has been planned to start from 3rd month onward so that
sufficient drawings can be made available to start the civil work.
Civil work for the plant construction shall start from 4th month onwards.
The structural fabrication and supply work is planned to commence from
4th month, so that the structural erection can be started from 7th month
onward. It is envisaged that the supply of plant and equipment at site
shall start from 9th month and shall be completed by 14th month.
Accordingly the equipment erection shall commence from 11th month and
is expected to be finished by 15th month.
The testing, trial-run and integrated commissioning of fabrication and
galvanizing unit including its services facilities are planned to be taken up
progressively from 15th month onwards as shown in the schedule.
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14.05 Advance Actions
In addition to the above, it will be imperative to complete many of the
activities prior to “Zero-date” of the project. These include:
Preparation & issue of tender document for major technological
units
Actions for placement of orders for major technological units
Financial tie-ups, if any.
Finalization of terms with overseas agencies, if any
Soil investigation
Actions for enabling works like, construction of water line, power
line, sewerage, labor camps, etc.
It is envisaged that the project will be implemented on turnkey basis for
the major production units including auxiliaries and services facilities. The
proposed implementation schedule and planning has been based on this
approach.
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15. POLLUTION CONTROL & WASTE MANAGEMENT
15.01 General
The pollution control system for the proposed TLT Manufacturing Complex can
broadly be divided into the following three categories:
- Air pollution control
- Noise pollution control
- Water pollution control
15.02 Air pollution control
Possible source of air pollution in the proposed complex are the alkaline and
acidic fume from galvanizing unit. These fumes will be extracted by the fume
exhaust system and released into atmosphere at adequate height matching
statutory requirements.
Emission of air pollutants from the other units will be practically negligible. As
such, no other air pollution control measures have been envisaged.
15.03 Noise pollution control
Excessive noise produced by the various equipment operating in the plant will be
suppressed by providing necessary accoustics insulation of the equipment,
silencers in the atmospheric relief and usage of suitable sound
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insulators/dampers for the structures and buildings. The noise level in the
vicinity of the plant and equipment will be generally kept within the permissible
limits.
The equipment and services will be designed such that in working premises the
continuous exposure noise level of 90 db (A) is not exceeded. In case the sound
level in a particular zone near equipment is above the permissible limits, the
exposure duration for the affected workers will be suitably proportional to the
increased percentage of noise levels.
15.04 Water pollution control
The water supply and effluent disposal system proposed for the plant will be
mostly closed recirculation systems which will help in reducing the fresh water
requirement and also minimize water pollution. Where water is used only for
cooling purposes and there is no change in its characteristics except some rise in
its temperature, water will be cooled in cooling tower before it is reused.
An effluent treatment plant has been envisaged for treating effluents arising
from galvanizing unit. As the flow of effluents is intermittent, the effluent
treatment plant will work batch—wise. The treatment system for treating
effluents from galvanizing unit will have a holding tank of adequate capacity. The
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waste water and rinse water will be collected in a collection/mixing tank. The
mixed effluent will be neutralized by adding milk of lime and compressed air
supply for oxidation of ferrous chloride. Then the effluent will be transferred to a
rectangular settling tank for clarification. The clarified water will be further
treated for reuse in the system. The settled sludge from settling tank will be
pumped to the sludge drying bed for sun drying and disposal.
Adequate measures have been envisaged so that all the treated effluents let out
of the complex will conform to permissible limits set by the statutory
authorities/pollution control boards.
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16 CAPITAL COST
16.01 General
The capital cost of the proposed TLT manufacturing complex proposed at VIZAG
including galvanizing and other related auxiliaries and services as envisaged has
been estimated and summarized as given below:
Sl. No. Description Cost (Crore Rs.)
1. Plant Proper 312.8
2 Interest during construction 12.3
3 Capitalized Land use charges 6.2
4 TOTAL 331.3
Including foreign exchange
component
106.0
Details of capital cost estimate have been furnished in the following table:
Table-16.01 Details of total estimated capital cost
16.02 Basis of capital cost estimate
The costs have been worked out on the basis of prices prevailing during 2ND
Quarter 2014 and do not include any provision for future escalation in costs
during implementation period.
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The various assumptions made while estimating the capital cost are elaborated
below: -
Land
The proposed plant is to be set up over an area of 50 Acres. The land shall be
permitted to use against user charges as described hereunder:
8% per annum of Rs 1.025 Cr per Acre i.e. Rs 4.10 Cr/Annum
Accordingly, cumulative user charges accrued during construction period have
been capitalized along with one time down payments.
The cost towards leveling of this land besides the cost towards laying of internal
roads, boundary wall, gates, security posts etc. have also been covered under
civil costs.
Buildings
The estimated cost of buildings has been worked out on the basis of preliminary
layout and design of facilities detailed in the previous chapters and rates for civil
works as applicable in the region. The facilities included in the estimates are
factory buildings including main and auxiliary services, non-factory buildings and
miscellaneous civil works etc.
Plant and machinery
The majority of cost estimate is based on budgetary quotations wherever
available. In other cases, the cost is based on in-house data available for similar
equipment in other projects. The cost of plant and machinery includes, besides
the basic cost, cost towards spares and transportation to site. Provision for
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ocean freight and insurance has been made @ 5.0% of FOB value of imported
supplies. Import duty has been provided @20.6036 % (5 % (CD, 10.0%CVD,
3%Ed.cess, 4%SAD) of CIF value of imported supplies under project import
provisions. For indigenous plant and equipment, excise duty has been
considered at an average rate of 10.3% and central sales tax at the rate of 2%
on such equipment and spares. Provision has also been made in the estimate
for erection and foundation of plant and machinery.
Engineering, Supervision, Project Management and Training etc.
A sum of Rs. 11.0 Crores (Rounded off) has been provided for payment towards
detailed engineering, consultancy charges, project management, supervision and
training etc.
Financing
The project is considered to be financed in the debt : equity ratio of 3:1. The
debt portion is to come through long term loan bearing an interest rate of 12%
per annum.
Construction schedule and Interest during construction
Total project is scheduled to be completed and commissioned in a period of 18
months from the zero date. The interest during construction has been
computed and capitalized based on above financing pattern & construction
schedule.
Contingencies
Provision for contingencies @ 5% on the capital costs has been made to cover
any unforeseen aspect of the estimate.
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Working capital
The working capital requirements have been considered as equivalent to one
months of cost of production. It is also assumed that entire working capital shall
be financed through short term bank borrowings bearing interest rate of 12%
p.a.
Exclusion
The cost estimate does not provide for followings: -
i) Any future escalation in prices
ii) Any currency fluctuations in future
iii) Any changes in rate of duties & taxes
iv) Infrastructure facilities outside the battery limits of the plant proper
However, effects of these exclusions have been covered in sensitivity analysis
under variation in capital cost.
Exchange Rates
The imported supplies have been considered at following exchange rates:
Rs/Euro= 82.0
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Table-16.01
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17 PRODUCTION COSTS
17.01 General
The proposed TLT Complex has been envisaged to produce total of 120000 Tons
of galvanized finished products annually. It is assumed that the plant would
operate at 80 % capacity during first year, 90% during second year and 100 %
during third year and onwards.
The average production cost excluding depreciation and interest during third
year of operation when the plant achieves rated capacity utilization, works out
to Rs 52,263/ton (rounded). The details of annual works cost are given in Table-
17.01.
17.02 Materials and consumables
The plant has been envisaged to source its total black angle requirements from
RINL / Open market / through conversion agents depending upon the supply
constraints, price economics and logistic considerations. In view of such wide
ranged sourcing spectrum it has been decided to consider average delivered
price of black angles to the plant at Rs 41000/t for the purpose of this report.
The costs (Excl. Excise) of major input raw materials (Average as prevailing in the
market) as delivered at site have been adopted as follows: -
Sl. No. Item Rate(Rs/ton)
1 Steel Black Angles 41,000
2 Plates 39,000
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3 Zinc 164,000
Rates for raw materials and other inputs are based on information available from
Market feedback/MECON’s in house data.
Cost of consumables includes various consumables like lubricating oil and grease,
etc.
17.03 Utilities
The costs of various utilities such as water, electricity and fuel have been
considered as follows:
Sl.
No.
Item Unit Rate(Rs/unit)
1.
2.
3.
Raw Water
Electricity
Fuel (CO Gas)
M3
KWh
G-Cal
6.00
7.00
1900.0
17.04 Labour and supervision
Provision for labour and supervision is based on the operational and
maintenance manpower requirement. The details of manpower and wages &
salaries thereof are given in Table – 17.02.
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Table-17.02
Sl.no. Category No. of
employees
Annual averageremuneration/
employee
Total annualcost (Lakh Rs)
1 Executives 25 18 Lakh 4502 Non -
Executives75 8 Lakh 600
3 Out sourcedservices formaterialhandling andother non-criticalactivities
LS @730 Rs/ton offinishedProduct
876
Total 100 +Outsourced 1926
17.05 Repair & maintenance and Overheads
Cost towards normal repair & maintenance of plant and buildings and rent, rates,
taxes, insurance, etc have been covered under overheads. The provision includes
for administration and selling expenses also. The repair & maintenance expenses
are Rs 416 Lakh/Annum and remaining Rs 235 Lakhs/annum are towards
overheads provision.
17.06 Depreciation
Depreciation has been worked out based on straight-line method and written-
down value (WDV) method as per existing income tax rules. The details are given
in Table 18.06 in next chapter.
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17.07 Interest
The following interest rate has been considered for various types of
financing arrangements: -
Long term loan : 12% p.a.
Bank borrowings for working capital : 12% p.a.
17.08 Escalations
The above production costs are based on the prices/rates prevailing during 2nd
Qr. 2014 and no future escalations have been considered while assessing these
costs.
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Table-17.01
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18 FINANCIAL APPRISAL
18.01 General
Financial analysis has been carried out based on capital investment and
operating cost elaborated in preceding chapters and Average net sales
realization as discussed in para 18.07. The salient techno-economic indices of the
project have been summarized in Table -18.01.
Table-18.01
SALIENT TECHNO-ECONOMIC INDICES
Sl.No. Item description Unit Indices
1 Cumulative retained profit over
10 years of operation
Crore. Rs. 267.2
2 Average annual retained profit over
10 years of operation
Crore. Rs 26.7
3 Cumulative cash surplus over
10 years of operation
Crore. Rs 186.3
4 Average Debt-service coverage ratio over 10
years of operation
Ratio 1.51
5 Pay-back period Years 7.9
6 Break even capacity % 63
7 Internal rate return (IRR) over 20 years
Of operation
Pre-tax
Post-tax
%
%
22.1
18.8
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18.02 Profit & Loss and Cash Flow Statement and projected Balance sheet
The profit and Loss statement, cashflow statement and projected balance sheet
for 10 years of operation has been given in Table-18.02, 18.03 and 18.07
respectively.
18.03 Internal Rate of Return (IRR)
The internal rate of return (IRR) has been calculated considering 20 years project
life by employing discounted cash flow (DCF) technique. The IRR for the project
works out as follows:
IRR - Pretax : 22.1 %
IRR - Posttax : 18.8 %
18.04 Pay Back Period
The pay back period is defined, as the period required for recouping the original
investment outlay through the cash profit after tax. The pay back period for the
project works out to 7.9 years.
18.05 Break even analysis
Break even analysis determines the break-even point (BEP)- the level of capacity
utilization at which no profit no loss status can be achieved. The break even
capacity has been calculated as 63 % and presented in Table- 18.04.
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18.06 Debt Service Coverage Ratio (DSCR)
The debt-service coverage ratio for 10 years works out as 1.51 and details are
furnished in Table 18.05.
18.07 Net sales realization
The Average market price of galvanized TLT products have been found varying in
the range of Rs 55000/T to Rs 75000/T depending on various producers and
their loading position in terms of orders .It is a competitive market with
presence of many suppliers with small to large capacities. The actual feel of
bottom of sales realization is difficult to get, however depending upon limited
interactions and market feedback; it has been decided to adopt Rs 59000/T as
average net sales realization for the total finished products for purpose of
working out profitability.
18.08 Assumptions
Financing and repayment of loan
The total project cost is assumed to be financed in debt equity ratio of 3:1.
The long term loan is considered to be repaid in 32 equal quarterly
installments bearing interest of 12% p.a. with two years moratorium on
repayments from date of commercial operation.
Capacity utilization
It is assumed that the plant would operate at 80 % capacity during first year,
90% during second year and 100 % during third year and onwards.
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Depreciation
Depreciation has been worked out based on straight-line method and
written-down value (WDV) method as per existing income tax rules. The
straight-line method has been adopted in profit and loss statement, whereas
the WDV method has been adopted for working out the incidence of
corporate tax. The details are given in Table 18.06.
Corporate tax
Corporate tax has been assessed on taxable profit @ 32.99% (30.0%+10%
surcharge+3% Ed.cess). Minimum alternate tax (MAT) has been taken into
consideration wherever applicable.
CENVAT benefit
CENVAT benefit, as permissible, with regard to countervailing duty and
special addl. duty for imported capital goods and excise duty and service tax
for indigenous capital goods/services has been considered during operation
period.
18.08 Sensitivity analysis
Sensitivity analysis has been carried out for the variations in capital costs,
Conversion costs and D:E ratio. The result of this analysis is summarized in Table
18.07.
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Table-18.08
Sensitivity Analysis
Sl. No. ItemPost-Tax IRR
(%)
1. Base case 18.8%
2. Variation in capital cost
+10% 17.1%
-10% 20.9%
3. Variation in conversion cost
+10% 17.4%
-10% 20.1%
4. Variation in D:E ratio
2:1 18.5%
2.33:1 (70:30) 18.6%
1:1 18.1%
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Table-18.02
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Table-18.03
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Table-18.04
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Table-18.05
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Table-18.06
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Table-18.07
Note: Minor mismatches due to rounding may be ignored
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19 INDUSTRIAL SAFETY
SAFETY
Safety of personnel and the plant are of paramount importance and this
cannot be over looked. The following two major schemes are proposed to
cover the safety aspect viz. the fire protection system & area illumination.
Apart from this effective and efficient communication system, instructions
for safety goals and orientation programme for new employee have been
envisaged.
A. FIRE PROTECTION SYSTEM
Prevention and fighting of fire is one of the most vital aspects for any
industrial establishment. In a steel plant there are many areas, which are
susceptible to fire, and it calls for appropriate provision of fire protection
measures. The basic guiding factor comprises of both prevention as well as
extinguishments of fire. An elaborate system of fire protection has been
envisaged to tide over any such eventuality efficaciously. The system has
been planned in conformity with Tariff Advisory Committee’s guidelines, BIS
and other relevant standard/codes. The complete fire protection system will
comprise of the following sub-systems:
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i) Fire detection and alarm system
ii) Fire Hydrant System
iii) Water spray system
iv) Automatic Carbon dioxide (CO2) system
v) Passive fire protection
vi) Portable fire extinguishers
Communication facilities
i. EPABX Telephone At strategic locations
An EPABX telephone exchange having adequate lines exclusively for
fire services department shall be provided to meet the emergency
requirement. This telephone exchange shall be compatible with VHF
sets.
ii. V.H.F. Sets
One separate frequency with sufficient VHF sets shall also be
envisaged for the use of fire service department.
B. AREA ILLUMINATION
Illumination of new roads, new approach roads to shops and area
adjacent to new shops/ extension of existing shops is a safety aspect and
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it is proposed to cover such illumination requirements under this
scheme.
The following goals shall been suggested to establish for safety in the
plant premises:
a) A safe work environment.
b) Conduction of routine/regular workplace inspections.
c) Provision of Personal Protective Equipment.
d) Awareness and emphasis on implementation of safe work procedures
and rules.
e) Provision on-going safety training.
f) Enforcement of safety rules and appropriate discipline.
Mandatory for new employees: it will be mandatory for all new
employees to attend the Safety Orientation Session prior to starting
work within their assigned area. This session will be conducted under
the direction of the trained Safety officer and in coordination with
Human Resources. Upon completion of the Safety Orientation Session,
each new employee will be required to acknowledge that they have
received, understand, and will abide by the Company Safety Program. All
participants must sign a statement verifying that they have completed
the session.
JOINT VENTURE OF RINL & POWERGRIDTECHNO ECONOMIC FEASIBILITY REPORT
FORTRANSMISSION LINE TOWER (TLT)
MANUFACTURING COMPLEX
Page 142 of 142©2014 MECON Limited. All rights reserved
20 DRAWINGS
List of drawings enclosed with the report is given below:
Sl.
No.Description Drawing Number Rev
1. General Layout MEC/11/14/123J/TEFR/001 3
2. Shop Layout of Fabrication &
Galvanizing UnitMEC/11/24/123J/TEFR/002 0
3. Material Flow MEC/11/24/123J/TEFR/003 2
4. Water Balance Diagram MEC/11/40/123J/TEFR/001 1