Projects Department

of
Bhilai Steel Plant
(Known as Construction Department also)

1. Background
Steel Industry with its vital and forward linkage has a critical role to play
in the planned economic development of the country. Steel is one of the critical
materials required for sustaining the growth of countries economy.

While the steel industry has phases of conscious success in the past, it is
presently beset with the problem of lower capacity utilization, high-energy
consumption, lower productivity, high cost and Technological obsolescence. These
problems are being tackled through comprehensive planned corporate strategies
for greater satisfaction to the customers & meeting the global demand of steel.

2. Importance of Projects
A Project in a steel plant involves number of activities right from
Conceptualization, Planning, finalization of Consultant, Feasibility report, seeking
approval, Tendering, Ordering, Execution & Commissioning of units to achieve the
desired results.

During the execution of Projects various activities viz Enabling works

(Site leveling), Excavation, Concreting, Structural fabrication & its erection,
Technological Structural fabrication & its erection, Manufacturing & supply of
equipment & its erection, Sheeting, Refractory lining etc are involved.

With market globalization and capacity expansion, present steel industry

is passing through a phase stiff competition among large number of major players.
Today in order to remain in the competitive market, it has become essential for the
manufacturers to produce steel of superior quality at competitive cost. This needs
continual improvement in Techno-economics involving maximizing capacity
utilization, higher production, lower energy consumption besides adoption of latest
Technologies to produce customized and value added products. It is also very
important that the up-gradation / modification / addition is executed in time to
reap the benefit of the opportunities available in the market.

Thus the role of Project department is of extreme importance in effective

coordinating and meticulously monitoring the various activities and ensure that
the Project is completed in time.

3. Need of Projects
• INSTALLATION OF NEW UNITS
• MODIFCATION OF EXISTING UNITS
• SUBSTITUTION OF AGED UNITS (REPLACEMENT)
• INTRODUCTION OF AUTOMATION SYSTEMS.
• INTRODUCTION OF STATE OF THE ART TECHNOLOGY

4. Advent of Bhilai Steel Plant

The Government of India, entered into an agreement with the Government of USSR
on February 2, 1955, seeking technical & financial collorabation for establishment
of Bhilai Steel Plant. The 1.0 MT Expansion work was completed successfully. The
BSP journey for expansion is continued since then.

5. Non stop journey of Bhilai Steel Plant (1.0 MT to 7.0 MT

Crude steel)
I. 1.0 MT Stage

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 The work of 1 MT was started in 1955-56 and completed progressively by 1956-61
at a cost of
Rs. 202 Crs.

The following are the main features of 1 MT stage:

Unit Features
Coke Ovens 3 Batteries, 65 Ovens
Sinter Plant 2 Machines - 50 M2
Blast Furnace 3 B.F. -1033 M3
Steel Melting Shop 5 OHF (250 T)
Power Plant - I 2 Nos. 12 MW TG
Oxygen Plant – I 3 units
RMP - I 1 No. Dolomite Kiln & 2 Nos. Lime Kiln
Mills
Blooming Mill 1150 mm, 2 High Reversing
Billet Mill 700 / 500 mm
R&SM 950 / 800 mm
Merchant Mill 350 mm

II. 2.5 MT Stage & 3.2 MT Stage

The work of 2.5 MT was started around 1964 & completed progressively by 1967 at
a cost of
Rs. 150 Crs.

The following are the main features of 2.5 MT stage:

Unit Features
Coke Ovens 3 Batteries, 65 Ovens, 21.7 M3
Sinter Plant 1 Machine – 50 M2
Blast Furnace 3 B.F. – 1719 M3
Steel Melting Shop 5 OHF (500 T)
Slag Processing Plant Crushing & Screening of Aggregates
Power Plant - I 1 No. 12 MW TG
Oxygen Plant - I 1 Unit
RMP - I 1 No. Dolomite Kiln & 3 Nos. Lime Kiln
Mills
Blooming Mill 8 Groups of Soaking Pits
R&SM Finishing groups – 3, 4, 5 & 6
Billet Mill 1000 mm
Wire Rod Mill 250 mm

Note: -Coke Oven Batteries No. 7 & 8 and Sinter M/c No. 4 were added
beyond 2.5 MT Stage.

III. 4.0 MT Stage

The work of 4 MT was started some time in 1974-75 and completed progressively
by 1988 at a cost of Rs. 2288 Crs.

The following are the main features of 4.0 MT stage:

Unit Features
Coke Ovens 1 Battery 67 Ovens, 7 Meter Tall (COB –9)
Sinter Plant 4 Machines - 75 M2
Blast Furnace 2000 M3 with BLT (BF-7)
Steel Melting Shop 4 Twin Hearth Furnaces (500 T)
3 Nos. 100 / 130 T Convertor
Continuous Casting Shop 4 Nos. Single Strand Slab Caster
1 No. 4 Strand Bloom Caster
Oxygen Plant II 3 Nos. Air Separation Units
RMP II 1 No. Dolomite Kiln, 2 Nos. Lime Kiln & Brick
shop
Power Plant II 2 Nos. 30 MW TG & 1 No. 14 MW TG
OHP & CRMBSY

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 Mills
Plate Mill 3600 MM – 4 High Reversing and 4 High
Finishing
IV. Other AMR Schemes & De-bottlenecking Schemes & Capital
Schemes & Township
Number of AMR Schemes & De-bottlenecking schemes & Capital schemes,
Pollution control schemes & work on Township were also executed from time to
time.

V. Schemes under execution at present

Sanctione
S d
PROJECT
N Cost
(Rs. Crs)
1 Re-building of Coke Oven Battery # 5 219.04

2 Installation of New Slab Caster, RH Degasser & Ladle Furnace In 520.76

SMS – II
3 Installation of Hot Metal De-sulphurisation Unit at SMS-II 86.23

4 Instln. of Power Supply Facilities(MSDS-VI) for 2 x 1250 TPD New 62.00

Oxygen Plant
Sanctione
S d
PROJECT
N Cost
(Rs. Crs)

5 Installation of MSDS-V & associated Transmission line for 125.94

Evacuation of Power from BESCL’s Expansion Project
6 Implementation of ERP System at BSP 51.20

Replacement of Dn-3000 BF Gas Header from BF-1 to BF-6 13.48

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8 Repl. of existing MG sets for Roughing & Finishing stand drive 48.31
Motors at Plate Mill by digital Thyristor Convertors
9 Instln. of 700 TPD ASU-4 with Associated facilities at OP-II 212.44

Total 1339.4

VI. Schemes to be executed

Estimate
SN PROJECT cost
(Rs. Crs)
1 Installation of End Forging Plant for thick web rails 53.92

2 Replacement of 120 T/Hr Pusher Type Reheating Furnace with 85.36

140 T/Hr Walking Beam type Reheating Furnace at WRM
4 Electro Magnetic Stirrer in Bloom Cast SMS-II 27.85
5 Oxygen Evacuation facilities for new 2x1250 TPD Oxygen Plant 37.00
6 Implementation of Manufacturing Execution System 40.51
7 Modernization & expansion of BSP to 7.0 MT 11262.00
TOTAL 11682.4

VII. 7.0 MT Stage (Modernization & Expansion)

To meet the Corporate Goal, the SAIL Board has approved the Modernization &
Expansion of Bhilai Steel Plant on 3rd April’07 at a cost of 11262 Crs.

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 The Consultancy for various schemes is being provided by MECON & CET. The
Major Schemes are as follows:

SN Description of schemes
1. Modernization of BF-6 : Package-I (BF proper & CH)
2. Modernization of BF-6 : Package-II (GCP)
3. Installation of 2nd Sinter M/c in SP-3
4. Installation of 4060 M3 BF Complex
5. BOF Shop Technological Package
6. Installation of Continuous Casting Plant Complex
7. Installation of Universal Beam Mill
8. Installation of Bar & Rod Mill
9. Installation of new Normalizing Furnace under Plate Mill Modernization &
Augmentation
10. Augmentation of Plate Mill capacity: Instln. Of Cooling Beds, Pilers & Other
Equipment (Package –III)
11. Reheating Furnace for UBM, B&RM & URM
12. Installation of Secondary Refining Unit for SMS-III
13. Augmentation of OHP Part-A
14. Installation of Universal Rail Mill
15. Installation of New Coal Handling Plant
16. Installation of Hot Metal De-sulphurisation Unit for SMS-III
17. Replacement of Combi-caster with Bloom cum Beam blank caster in SMS-II
18. Installation of Compressed Air Station No. 4
19. Installation of Turbo-blower Station
20. Modernization of BF-6: Package-III (TB-9 revamping)
21. Modernization of BF-6: Package-IV (INBA SGP)
22. Aug. of Plate Mill capacity: Installation of Plate Edge Marking M/c & Automatic
Length Measuring System (Package –IV)
23. Aug. of Plate Mill capacity: Installation of 40 T EOT Crane & 17 T Semi-portal
Crane (Package –V)
24. Aug. of Plate Mill capacity: Installation of CNC Roll Grinding M/c
(Package –VI)
25. Aug. of Plate Mill capacity: Supply & Installation of GUILLOTINE Shear (Package
–VII)
26. Aug. of Plate Mill capacity: Civil & Strl. Works (Package –II)
27. Aug. of Plate Mill capacity: Installation of 140 TPH Walking Beam Type Furnace
(Package-I)
28. Augmentation of MSDSs & Installation of MSDS-VII
29. Boilers at P&BS
30. New OHP Part-B & Base blending facility for SP-3
31. COB-11 : 7 m tall coke oven battery No. 11 with 67 ovens
32. COB-11 : Installation of BPP with H2S recovery unit
33. COB-11 : Coke dry quenching facilities with coke sorting plant
34. Civil and Strl works for BOF, CCP shop
35. Civil & Structural Universal Rail Mill
36. Civil & Structural works for BOF & CCS, Universal Beam Mill and Bar & Rod Mill
37. Installation of 2 X 1250 TPD Oxygen Plant on BOO basis

Anticipated Volume of Works during 7.0 MT

The estimated volume of works for the Project on an overall basis is furnished below:

Activities Volume of works

Piling (Nos.) 2500
Concrete (M3) 534000 M3
Structures (T) 156000 T
Plant & Equipment (T) 155000 T
Refractory (T) 80000 T

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 Road Work
11 M Wide 3 KM
7 M Wide 8 KM
4 M Wide 5 KM
Laying & Linking of Railway Track 35 KM
Dismantling of Existing Railway Track 15 KM
VIII. Project organization

1. Presently Project Deptt. is headed by ED (Projects). GM (PP&E & BEDB), GM

(Proj.-Steel, OP & Utilities), GM(Proj.-Iron, Elect. & Mines), GM(Proj.-Mills, Coke &
Safety) and DGM I/c (Commercial) are directly reporting to ED(Projects).

2. The zonal concept is functioning in the Project Deptt. and headed by senior
DGMs.

3. Presently the workforce consists of 212 Executives and 170 Non-executives.

4. The site executing zones are as follows:

• Steel Zone
• Oxygen Plant-2 Zone
Reporting to GM (Proj.-Steel, OP &
• Gas Pipe line Zone
Utilities)
• TPL work shop
• PMC, Inspection, follow-up & Quality
• Iron Zone
• Power Generation Zone
• Instrumentation & Automation, Reporting to GM (Proj.-Iron, Elect. &
Testing Mines)
• Electrical enabling Zone
• Civil services Zone
• Coke Zone
• Mill Zone Reporting to GM (Proj.-Coke, Mills &
• HRD & Safety Safety)
• Construction Equipment Zone
• Project Contract Cell – Turnkey
Reported to DGM I/c (Commercial)
• Project Contract Cell – Non-Turnkey

IX. Functional details of Project Department

9.1 Project Contract Cell (Turnkey)

a. Receipt of sanction letter from PP& E (Scheme No. & Amount code, etc.)
b. Coordination with shop, consultant & finalization of TS / specifications.
c. Receipt of final TS from consultant.
d. Issue of tender enquiry.
e. Organizing bidders conference.
f. Coordination with consultant & parties for getting technical and commercial
clarifications.
g. Recommendations for placement of ordering.
h. Award of contract.
i. Sorting out commercial issues with the parties.

9.2 Project Contract Cell (Non-Turnkey)

a. Receipt of Stage-II from PP& E (Scheme No. & Amount code etc.).
b. Receipt of draft TS from consultant.
c. Coordination with shop, consultant & finalization of TS / specifications.
d. Receipt of final TS from consultant.
e. Receipt of proposal from zone for tendering.
f. Finalization of eligibility criteria (NIT) including publication matter.

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 g. Seeking approval of management for release of tender enquiry for publication in
open tender / limited tender.
h. Release of publication matter for publication in newspapers & on sail website.
i. Issue of tender enquiry in case of limited tender.
j. Sale of tender document.
k. Extension if required for submission & opening of offers.
l. Opening of earnest money deposit / BG.
m. Opening of tender / techno-commercial offers.
n. Process for bid evaluation techno-commercial & commercial.
o. Recommendation for placement of ordering.
p. Award of contract.
q. Extension of time, clarification, settlement of rates of extra items & interim
deviations.
9.3 Site Execution zone
a. Detail study of contract, scope, terms & conditions.
b. Planning & execution for enabling works.
c. Providing utilities & services to the executing agency within the boundary limits.
d. Interaction with the executing agency for opening site office, gate passes for
workers & receipt of various policies from the party.
e. Study of L-1 network submitted by the party.
f. Finalization of implementation plan based on contractual commitments.
g. Follow-up with the party for completion of design engineering, equipment ordering,
manufacturing and erection.
h. Execution of civil work, dismantling if any and trench work.
i. Fabrication & erection of building structures.
j. Follow-up with the party for manufacturing & supply of equipment.
k. Erection of equipment (Mechanical, Electrical, Instrumentation & Automation).
l. Erection of refractory, sheeting etc.
m. No-load testing & trial run of equipment.
n. Load trial run of equipment.
o. Defect elimination.
p. Issue of PAT.
q. Commissioning of equipment.
r. Establishing performance guarantee.
s. Closure of contract.
t. Feed back.

9.4 Project Monitoring, Inspection & Follow-up

a. Understanding detail of contract by getting contract copy.
b. Organizing kick-off of meeting.
c. Coordination with party / consultant for finalization of list of drawings and
documents.
d. Follow-up with the party & consultant for completion of design engineering as per
contractual schedule.
e. Follow-up with the party for submission of master PERT Network & coordination
with zone, shop & consultant for its approval.
f. Finalization of implementation plan for various activities w.r.t. Contractual
schedule.
g. Preparation of Annual Implementation Plan for the contract.
h. Preparation of High lights for the year.
i. Preparation of Monthly Progress Reports of all ongoing schemes.
j. Preparation of Weekly Progress Reports.
k. Preparation of Daily Progress Reports.
l. Preparation of agenda for review meetings being taken by MD / ED / GM as and
when required in consultant with execution zone, consultant & shop.
m. Preparation of MOM / record notes of all project review meeting.
n. Preparation of MIS report.
o. Visit to site for follow-up of site progress.
p. Coordination & submission of all audit report.
q. Budget certifications.
r. Follow-up with party for expediting supply of equipment.
s. Inspection of equipment as per QAP.
t. Coordination for budget allocation.

X. Capital Expenditure

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As on 31.03.07 around Rs. 6642 Crores Capital Investment has been made by
Bhilai Steel Plant. The Details are as follows: -.

Schemes Cost (In Crs.)

1.0 MT Expansion 201
2.5 MT Expansion 150
4.0 MT Expansion 2288
Social Facilities & Town Ship 185
AMR, De-bottle necking/ New Capital schemes & On–going 3823
schemes

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