1. NMDC IRON & STEEL PLANT NAGARNAR
A Journey from Mineral to
Metal

2. A case study of execution of a Mega Steel Plant
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
A case study of execution of a Mega Steel Plant
Presented by-
Prasant Dash
Executive Director
NMDC Iron & Steel Plant, Nagarnar.

3. NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARHv
NMDC Limited is a “Navratna” Public sector company under the Ministry of Steel, Government of India Incorporated in the year 1958.
NMDC is pioneer in exploration of minerals and is primarily engaged in the business of developing mines to produce raw materials for the industry.
NMDC Ltd is setting up an Integrated steel plant of 3.0 MTPA at Nagarnar, in the tribal district of Bastar, Chhattisgarh which will boost the socio- economic stature & standard of living in this tribal belt.

4. NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
NMDC being a mining company was not having any expertise in steel. The estimated time period for the project was about four years which is already overrun by one and half years. NMDC has hired MECON as our Engineering consultant & as well as PMC contractor and awarded all the major packages on EPC basis.
An attempt is being made in this case study to identify the major challenges and learning’s of project execution in steel industry in order to complete future projects with zero cost and time overrun.

5. NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
CHHATTISGARH STATE
Raipur
Nagarnar
Bailadila Mines
Visakhapatnam

6. Salient features of the Plant
Capacity (Liquid Steel) : 3 MTPA
Cost of Project : Crores
Land Acquired : acres
Capacity (HR coils/sheets/plates) : MT/yr.
Coke Oven & CDCP : 7 mtr Tall Batteries, 2 Nos.
Sinter Plant : Sqm, 1 No.
Blast furnace : Cum
Pig Casting Machine : tpd, 3 machines
Steel Melting Shop : 2 x175 T BOF Converters
Thin Slab Caster + HSM : 2 Strand CC and HSM RM+4FM+2 Down Coiler
Other Units : By Product Plant, RMHS

7. NISP Packages Major Technological Packages RMHS CO &CDCP
By-Product Plant
Sinter Plant
Blast Furnace
Steel Melting Shop
TC-HSMTSC Final RM
Lime & Dolo Plant
Oxygen Plant
With 56 Auxiliary and 11 Enabling Packages

8. TOTAL SCOPE OF WORK NAGARNAR, CHHATTISGARH
Area
UOM
Scope
RCC
Cum
990000
Structural Supply MT
277000
Structural Erection
Equipment Supply
211000
Equipment erection
Refractory supply
111600
Refractory erection
Total scope of work

9. PROCESS-CUM-MATERIAL FLOW SHEET
RMHS
COKING COAL
2,289,300
COKE BREEZE
295,000
IRON ORE FINES
3,826,900
IRON ORE LUMP
1,052,800
BURDEN SINTER
4,214,600
BURDEN COKE
1,195,600
SP : 1 x 460 m2
CO : 2 x 67, 7m tall
BF : 1 x 4500 m3
3,321,200 GHM
282,000 HM
3,039,200 HM
PCM
SMS : 2 x 175 T
3,000,000 LS
RH-OB : 175 T
LF : 2 x 175 T
3,000,000 Liq Steel
TSC coupled with HSM
2,896,000 T
HR COILS 9

10. PRODUCT MIX Product Specification & Size Uses HR Plates HR Plates
IS 2062, IS 5986, IS 3039
5-10 x
(Thickness x width)
mm x mm
Manufacture of bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons and pressure vessels.
IS 2002 & IS 2041
API - 5L quality plates -upto X 80.
6-12x upto 1550
Pipes used in transportation of liquid and gases.
HR Plates
HR Plates
API - 5L Quality Plates 10

11. PRODUCT MIX Product Specification & Size Uses HR Sheets LPG Cylinders
IS 3196
2-4x
(Thickness x width)
mm x mm
Manufacture of bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons and pressure vessels.
IS:6240
x (Thickness x width)
Used in manufacturing of LPG cylinders.
IS 10748, IS 1079. x
construction of tanks, railway cars, bicycle frames, ships, engineering and military equipment and automobile and truck wheels, frames and body parts
HR Sheets
LPG Cylinders
HR COILS 11

12. PRODUCT MIX Product Specification & Size Uses Silicon steelIS
(Thickness x width)
mm x mm
Used in making pipes, cast iron pots, hot water radiators etc
DIN
(Thickness x width)
used in generators, motors, and transformers IS
(Thickness x width)
Used in manufacturing of automobiles etc.
High Carbon Steel
Silicon steel
Automotive steel 12

13. NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
General challenges faced by NMDC for setting up a green field project are:
Land Acquisition.
Environmental & Forest clearances.
Resettlement & Rehabilitation policy of displaced persons.
Poor logistics for transportation by Rail and Road.
Scarcity of skilled and trained manpower in the area.
Limited availability of quality education and medical facilities
Delay in getting statutory clearance and permission

14. Constraint due to Employer
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to Employer
Time lag between awarding of major contract for major as well as auxiliary packages.
Recruitment and retention of manpower by NMDC.

15. Constraint due to consultant
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to consultant
Delay in finalization of design & engineering by consultant.
Lack of coordination between consultant’s engineering, inspection and site supervision team.
Incorrect assessment (increase) in scope of work by consultant and contractor while tendering.
Outdated Vendor list in contract.

16. Constraint due to consultant
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to consultant
Difference arising due interpretation of contract by Client, consultant and contractor.
Price escalation due to delay in execution and non- availability of adequate provision in contract for paying price variation before contract closing.
Lack of foresight for planning essential facilities for starting of plant. (Sand Pit, ZLD, Coal Storage area etc.)

17. Constraint due to Consortium:
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to Consortium:
Lack of Coordination among the consortium members of various packages
Financial problem of contractor and its sub-contractor has caused delay in execution of ordering to vendor and reduced rate of progress at site.
Different pace of work by various contractors in respective packages
Ambiguity in plan during contingency ( non- availability of construction water/permanent water, emergency power and island facility)
Sub-contracting of jobs to in-competent contractors by main contractors.

18. Constraint due to ambiguity of contract
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to ambiguity of contract
Inter consortium disputes between contractors due to non clarity in scope of work.
Technical contract prepared by MECON having lot of discrepancies causing delay in execution.

19. Constraint due to Employer and Consultant
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to Employer and Consultant
Integration and interfacing of different plants/packages.

20. Constraint due to Location
NMDC IRON & STEEL PLANT NAGARNAR, CHHATTISGARH
Constraint due to Location
Availability and retention of skilled labour by contractor in Bastar region.
 Poor infrastructural and logistic facility in region.

21. Blast Furnace

22. BY PRODUCT PLANT

25. Steel Melting Shop

26. Mills Area

27. Thank You