Presentation on theme: "Role of EPC Contractor in Growth of Steel Industry Achievements & Unfinished Agenda By : Mr. D.M.Shah Vice President & Head Minerals and Metals Business."— Presentation transcript:
1Role of EPC Contractor in Growth of Steel Industry Achievements & Unfinished Agenda By :Mr. D.M.ShahVice President & Head Minerals and Metals Business UnitLarsen & Toubro Ltd.
2Growth of Indian Steel Industry Steel production, MtExponential GrowthDecontrolControlledRegime
3Steel Capacity in India Present Capacity – 63 MTPAGrowth Rate – 7.5% CAGR ( ) Apprx.Projected Growth Rate- 10% CAGR Apprx.By 2015 India Second Largest Steel Producer
4Major Steel Expansion Projects / New Projects Steel Authority of India LimitedTata SteelRINLBhushan GroupJindal GroupEssar SteelNMDCPOSCOArcelor Mittal
5PSU Present Projects – Mode of Execution SAIL /RINL–Presently Undertaking Complete Iron making Area under EPC RouteMaterial HandlingBeneficiationPellet PlantSinter PlantBlast FurnaceCoke OvenSuccessful completion of EPC Packages clearly demonstrate the choice of packaging
7Private Producers – Mode of Execution Tata Steel/ Bhushan Steel – Packages under EPC ModeMaterial HandlingBeneficiationPellet PlantSinter PlantBlast FurnaceCoke OvenClear and Evident Advantages Observed
8Emergence of EPC Companies Pre 1990’sTraditional Steel Plant Engineering AgenciesStrong Construction & Execution PartiesLarge Manufacturing & Fabrication UnitsHuge Time and Cost Overrun Observed
9Emergence of EPC Companies Post 1990’sDomestic / InternationalEngineering & Procurement PartiesConstruction & Erection AgenciesEmergence Full or Part EPC CompaniesRelative Improvement of Project Deliveries
10Achievement - EPC Concept 2008 to Present and BeyondDominant Role of EPC Players in Iron MakingIncreased Awareness of Customer andGraduation of Major Players into EPCVery Significant reduction of Project Schedules and Quick Achievement of Plant Performances
11Reasons of Increasing Trend towards EPC Committed Delivery - Single Point ResponsibilitySuperior and Optimized Engineering SolutionsReduced Interface between multiple agenciesShortened Schedule /Savings on Interest CostsBase Contract Price – Fix on Estimates /BudgetsClarity of Sharing of LiabilitiesFaster Ramp-up and Achievement of PG‘Core competence’ of Engineering and Project Management - best in hands of Experts
12Challenges for EPC Players Fighting the ‘High Cost of EPC’ MythChanging the mindset of Traditional Fragmented ApproachSuitable partnering for both – Tech’ologist / Local ExecuterEnhancing Engg Manpower / Manufacturing ResourcesRecruitment/ Training /Retaining Construction EngineersStandardization of Commercial TermsRationalisation of Taxation StructureLow Entry Barriers for Outdated TechnologiesCustomer Support Required to Strengthen EPC Route
13Steel making /Rolling and Finishing Mill areas under EPC Mode Unfinished AgendaSteel making /Rolling and Finishing Mill areas under EPC ModeEnsuring 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 .
14Way 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 .