1. Role of EPC Contractor in Growth of Steel Industry Achievements & Unfinished Agenda
By :
Mr. D.M.Shah
Vice President & Head Minerals and Metals Business Unit
Larsen & Toubro Ltd.

2. Growth of Indian Steel Industry
Steel production, Mt
Exponential Growth
Decontrol
Controlled
Regime

3. Steel Capacity in India
Present Capacity – 63 MTPA
Growth Rate – 7.5% CAGR ( ) Apprx.
Projected Growth Rate- 10% CAGR Apprx.
By 2015 India Second Largest Steel Producer

4. Major Steel Expansion Projects / New Projects
Steel Authority of India Limited
Tata Steel
RINL
Bhushan Group
Jindal Group
Essar Steel
NMDC
POSCO
Arcelor Mittal

5. PSU Present Projects – Mode of Execution
SAIL /RINL–Presently Undertaking Complete Iron making Area under EPC Route
Material Handling
Beneficiation
Pellet Plant
Sinter Plant
Blast Furnace
Coke Oven
Successful completion of EPC Packages clearly demonstrate the choice of packaging

6. PSU Present Projects – Mode of Execution
NMDC –Following Packages Envisaged thro EPC Route
Material Handling
Beneficiation
Sinter Plant
Blast Furnace
Coke Oven
Steel Melting Shop
Rolling Mill
Complete Steel Plant under EPC Route - Emerging Scenario of Project Execution

7. Private Producers – Mode of Execution
Tata Steel/ Bhushan Steel – Packages under EPC Mode
Material Handling
Beneficiation
Pellet Plant
Sinter Plant
Blast Furnace
Coke Oven
Clear and Evident Advantages Observed

8. Emergence of EPC Companies
Pre 1990’s
Traditional Steel Plant Engineering Agencies
Strong Construction & Execution Parties
Large Manufacturing & Fabrication Units
Huge Time and Cost Overrun Observed

9. Emergence of EPC Companies
Post 1990’s
Domestic / International
Engineering & Procurement Parties
Construction & Erection Agencies
Emergence Full or Part EPC Companies
Relative Improvement of Project Deliveries

10. Achievement - EPC Concept
2008 to Present and Beyond
Dominant Role of EPC Players in Iron Making
Increased Awareness of Customer and
Graduation of Major Players into EPC
Very Significant reduction of Project Schedules and Quick Achievement of Plant Performances

11. Reasons of Increasing Trend towards EPC
Committed Delivery - Single Point Responsibility
Superior and Optimized Engineering Solutions
Reduced Interface between multiple agencies
Shortened Schedule /Savings on Interest Costs
Base Contract Price – Fix on Estimates /Budgets
Clarity of Sharing of Liabilities
Faster Ramp-up and Achievement of PG
‘Core competence’ of Engineering and Project Management - best in hands of Experts

12. Challenges for EPC Players
Fighting the ‘High Cost of EPC’ Myth
Changing the mindset of Traditional Fragmented Approach
Suitable partnering for both – Tech’ologist / Local Executer
Enhancing Engg Manpower / Manufacturing Resources
Recruitment/ Training /Retaining Construction Engineers
Standardization of Commercial Terms
Rationalisation of Taxation Structure
Low Entry Barriers for Outdated Technologies
Customer Support Required to Strengthen EPC Route

13. Steel making /Rolling and Finishing Mill areas under EPC Mode
Unfinished Agenda
Steel making /Rolling and Finishing Mill areas under EPC Mode
Ensuring Downstream Steel Making Units to be similarly packaged like Iron Making so as to ensure interfacing and integration of the total plant .
Encourage Technologists as well as Indigenous Players to come together to provide EPC solutions .

14. Way Ahead …
We look forward to a more pragmatic approach wherein the huge challenge of increasing the steel capacity of the country to 160 MT is taken up in a manner which could not only ensure faster and quicker completion but overall could also help in saving the total project costs .

15. Thank You