nmdc sp presentation_23_04_15-pt

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NMDC Limited

SINTER PLANT(PACKAGE 04)

3.0 MTPA INTEGRATED STEEL PLANT at NAGARNAR, Chhattisgarh

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Restricted © Primetals Technologies 2015 All rights reserved.

NMDC Limited, - SINTER PLANT Project Review – 28/04/2015Agenda

Project Overview

Time schedule

Engineering Status

Ordering & Delivery Status

Site Status

Commercial Status

Areas of concern


NMDC Limited, - Sinter Plant3.0.MTPA Integrated Steel PlantProject Review – 28/04/2015


Nearest Town / City : Jagdalpur (16 Km from Nagarnar Site)

Nearest Major RLY Station : Jagdalpur

Nearest Airport : Raipur (315 Km from Jagdalpur)

Road network / quality : Beside NH-43, Good Road Condition

Passes through mixed terrain.




Project Key Data Customer:

NMDC Ltd.

Open Consortium:

PTAT / PTIN / NCC

Project Volume: Linz

€ 20.08 Mio

Project Volume: Kolkata

INR 3511.91 Mio

Project Volume: NCC

INR 2,297.56 Mio

Revised Milestones

Contract Signed

03-Mar-2011

Contract Effective

22-Feb-2011

End of Commissioning

09-Sept-2016

Plant Key Data Size

463.5 m²

Rated Productivity

1.3 t/m²/h

Capacity

4.74 Mt/y

Size of Finished Sinter

5 – 40 mm

Annual Working Regime

330 d/y

Under-grate Suction

1700 mmWC

Cooler Type

Circular

Temp. of Cooled Sinter

Below 100 °C

Exhaust Gas Dust Content

Below 50 mg/Nm³

Gaseous Energy Consumption

15000 KCal/t

Electric Energy Consumption

35 Kwh/t

Coke Breeze Consumption

70 Kg/t


NMDC Limited, - Sinter Plant Project Review – 28/04/2015Contract Value Split (Value in MIO)

EURO : 20.081 – LinzINR : 3511.917 – Kolkata

PTATEuro 20.081

PTININR 3511.917

NCCINR 2297.563

DesignEuro 7.010

SupplyEuro 11.403

Supervision & TrainingEuro 1.401

Ocean FreightEuro 0.267

DesignINR 264.770

SupplyINR 2837.690

Erection & CommissionINR 368.319

TrainingINR 3.678

Civil WorksINR 9441.05

Structural WorksINR 7278.08

Storage, Handling etc.INR 4731.91

SupplyINR 1525.59

Customs & Port ClearanceINR 9.700

Transit/ Marine InsuranceINR 27.760


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Time Schedule

Major Milestones

Contractual start date

Contractual end date

Actual / (Expected) start

date

Actual / (Expected)

end date

Remarks, if any

Project Handover

22.02.2011 11.04.2011

Project Opening 04.04.2011 04.04.2012

Engineering 22.02.2011 21.10.2012 27.05.2011 28.01.2016 Delay in Laboratory Engg. only. Rest complete by May’15.

Purchasing / Manufacturing

02.05.2011 30.04.2013 16.05.2011 08.04.2016 Laboratory Equipment order under hold.

Dispatch 04.09.2011 30.05.2013 10.11.2012 26.04.2016

Installation 01.10.2011 18.08.2013 22.07.2011 26.07.2016

Commissioning 22.07.2013 04.11.2013 15.02.2016 09.09.2016 Subjected to Labor Increase and Inputs from Customer.


NMDC Limited, - Sinter PlantProject Review – 28/04/2015DESIGN-ENGINEERING STATUS


NMDC Limited, - Sinter PlantProject Review – 28/04/2015AND DELIVERY STATUS


NMDC Limited, - Sinter PlantProject Review – 28/04/2015EQUIPMENTS ORDERING, MANUFACTURING, DELIVERY STATUS

Item Vendor StatusPallet Car Dong Yang Cast Iron Company Ltd. Delivered

Cooler Planetary Gear Moventas GmbH Delivered

Star Crusher CSMC, Taiwan Delivered

Gear box for drum feeder SIEMENS Delivered

Sinter M/c Planetary Gear SIEMENS Delivered

PLC SIEMENS Delivered

Conveyor VARIOUS Ready for Dispatch

Lifting & Lowering Wheel ISGEC Ready for Dispatch

Weighing System SCHENK Delivered

Cooler ESSAR Delivered

SCREEN IC Delivered

Drum feeder incl. liner Sairose Heavy Engineering Delivered

Cold sinter crusher Tecpro Systems Ltd. Delivered

Vibrating feeder IC Delivered



Item Vendor StatusESPs ALSTOM Mech over, E&A under progress

Drive for main & Sub gate Cyclo Transmissions Ltd. Delivered

Collecting chute for scoop drum Sairose Heavy Engineering Delivered

Surge hopper & Discharge Gate Sairose Heavy Engineering Delivered

Fans REITZ Delivered

WINDBOXES Bhilai Engg Co. Delivered

WB longitudinal and cross beams Bhilai Engg Co. Delivered

Drop Out Box RIECO Delivered

AIR BLASTER Kaveri Ultra Polymers Ready for Dispatch

Waste Gas Duct Beekay Engineering Delivered

Pallet Grate Bar Cleaning &Device & Grease Scraper Ray Industries Delivered

Star Crusher Gear Box SIEMENS Delivered

VLC SIEMENS Delivered



Item Vendor StatusDribble Hopper Beekay Engineering Delivered

Dead Plate SIEMENS CHINA Delivered

Chain Conveyor STOCK REDLER Partly Delivered

Bin Aeration System SCHENK India Delivered

Pneumatic Conveyor and BF FLSmidth India Partly Delivered

S/m Framework BIW Delivered

Transformer Sudhir Transformer Delivered

Flow Switch IFM Electronic India Pvt Ltd. Delivered

Gas Analyser Adage Automation Delivered

Thermo Couple Industrial Instrumentation. Delivered

VCB Iso / HT & LT Motors SIEMENS Delivered

Sample Taker Siebtechnik Under Dispatch

Ignition Furnace Burner Fbb Ready for Dispatch

PCC GE Delivered



Item Vendor StatusCooler Imported parts CSMC TAIWAN Delivered

Double Girder Crane Unique Handlers Delivered

Single Girder Crane Unique Handlers Mfg. under Progress

High Mast Tower GE India DELIVERED

Motors SIEMENS India Delivered

Pumps BEST & CROMPTON Ready for Dispatch

WASTE GAS DUCTS BEEKAY ENGG DELIVERED

DEDUST DUCT DUTTA ENGG Under Delivery

CRUDE GAS DUCT COREFAB Under Delivery

GRIZZLY BAR WITH CAR MFL, AUSTRIA Delivered

Perfect Harmony Drive for Cooler SIEMENS India DELIVERED

Valves WEIR BDK Ready for Dispatch

Refractory for STACK ARVIND INDUSTRIES DELIVERED

HT & LT Power Cables KEI PARTLY DELIVERED


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Site Status

SCOPE EXECUTED % COMPLETE

CIVIL WORKS 43307 40250 93%

(CONCRETE)

STRUCTURAL WORKS 15041 13735 91.3%

(FAB)

STRUCTURAL WORKS 15041 9541 63.4%

(EREC)

EQP. ERECTION 11445 4813 42%

(MECH)

EQP. ERECTION 3256 190 6%

(ELEC)


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Site Status


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Commercial Status

All values in Million

Order Value : INR 3543.86Plan Cost : INR 3266.38Revenue Margin : 7.82%Revenue booked till 31st March 2015 : INR 2332.53Unexecuted Order Value : INR 1211.33Cost Booked till 31st March 2015 : INR 2152.05Cost to Complete : INR 1114.33Progress billing till 31st March 2015 : INR 2000.81Collection till 31st March 2015: Advance : INR 332.81 Progress Payment : INR 1513.26 Retention Amount : INR 195.47



Project NameOrder

IncomeBudget

previousActualBudget

Incurredto-date

Estimated to complete

NMDC SINTER PLANT

* all values in INR

Project Profit & Loss

Order Intake/ Contract Value 3,832,843,000 3,543,835,392 3,543,835,392 3,543,835,392

Order Intake 3,832,843,000 3,543,835,392 3,543,835,392 0 3,543,835,392

Order Intake/ Contract Value Net 3,832,843,000 3,543,835,392 3,543,835,392 3,543,835,392

Order Intake Net 3,832,843,000 3,543,835,392 3,543,835,392 0 3,543,835,392

Sales 3,832,843,000 3,543,835,392 3,543,835,392 2,332,529,341 1,211,306,051

Sales 3,832,843,000 3,543,835,392 3,543,835,392 2,332,529,341 1,211,306,051

PoC in % 65.82% 34.18%

PoC in % accumulated 65.82%

Cost 3,454,833,485 3,266,382,692 3,266,382,692 2,152,053,178 1,114,329,514

Sum Cost of Sales 3,454,833,485 3,266,382,692 3,266,382,692 2,152,053,178 1,114,329,514

Gross Profit 378,009,515 277,452,700 277,452,700 180,476,163 96,976,537

Gross Profit in % of total sales 9.86% 7.83% 7.83% 7.74% 8.01%

Selling Expenses 0

Sustaining costs (G&A) 209,478,000 209,478,000 209,478,000 137,877,053 71,600,947

Sum Total overhead cost 209,478,000 209,478,000 209,478,000 137,877,053 71,600,947

Net profit 168,531,515 67,974,700 67,974,700 42,599,110 25,375,590

Net Profit in % of total sales 4.40% 1.92% 1.92% 1.83% 2.09%



Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015

Revenue 17.380 59.396 63.434 91.319 85.199 55.648

Cost 16.019 54.746 58.468 84.170 78.529 51.291

Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 TOTAL

Revenue 74.115 41.607 74.043 10.507 10.887 40.036 623.571

Cost 68.312 38.350 68.246 9.685 10.035 36.901 574.751

SD Billing Forecast: IR: INR 390.00 EA: INR 280.00Collection Forecast: IR : INR 294.00 EA: INR 195.00




Debtor as on 31st March 2015: INR 144.74 IR Debtors: INR 99.86EA Debtors: INR 44.88



MAJOR EQUIPMENTS PLANNED DELIVERY THIS FY - IR SEGMENT

1.CRUDE AND CLEAN GAS DUCTS - Rs.47 Mio2.LIFTING & LOWERING WHEEL - Rs.20 Mio3.HVAC - Rs.46 Mio4.FIRE FIGHTING - Rs.52 Mio5.BELT CONVEYOR PACKAGE - Rs.124 Mio6.SINGLE GIRDER CRANE - Rs.28 Mio7.Pneumatic System - Rs.20 Mio8.IGNITION FURNACE BURNER - Rs.26 Mio9.SAMPLE TAKER - Rs.05 Mio

---------------------------------------------------------------------------------------------------------------TOTAL - Rs.368 Mio

_____________________________________________________________________



MAJOR EQUIPMENTS PLANNED DELIVERY THIS FY - E&A SEGMENT

1.CABLE - Rs.73.5 Mio2.LIGHTING & LIGHT FITTINGS - Rs.35 Mio3.CABLE TRAY - Rs.30 Mio4.ERECTION - Rs.26.5 Mio5.NETWORK & SOFTWARE - Rs.03 Mio

---------------------------------------------------------------------------------------------------------------TOTAL - Rs.168 Mio

_____________________________________________________________________




Excess Cost as on 31st March 2015 : INR 446.46 IR Excess Cost : INR 285.78EA Excess Cost : INR 146.78

Supply Draft Invoice ready/ Hold due to Name change : INR 120.04 INR 85.60 Engineering Draft Invoice ready/ Hold due to Name change: INR 27.85 INR 30.66Problem with SIEMENS Flender consignments: INR 25.12 Customs Draft Invoice ready/ Hold due to Name change : INR 9.19 Inventory booked for PLC/ Simocode : INR 79.12 Part Supply/ pending MRIV : INR 51.27 (Under discussion with client/consultant)


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Financial Status

Author / Department

S-Curve of PM



Author / Department

S-Curve of CPM



Author / Department

S-Curve of ENGG



Author / Department

S-Curve of SCM



Author / Department

Particulars Risk Title Basic Probability Expected

Processing RiskRisk due to political reasons

66.65 50% 33.33Risk pertaining to safety of Site Staffs and emergency medical cost including Air Ambulance and Hospitalization.

Processing Risk

Additional Risk on account of Storage Cost (2 years)

4.93 70% 3.45Anticipating prolongation of the Project, Additional Cost has been envisaged, on account of Sensitive Equipments being stored at Site.

Processing Risk

Additional Risk on account of Maintenance/Stored Equipments

23.42 70% 16.39Stored and erected Equipments shall be needed to be maintained in working condition, till the project is handed over. With anticipated prolongation, Additional Cost has been envisaged.

Risk Synopsis



Author / Department


Processing Risk

Additional Risk on account of Warranty / repairs / replacements

20.00 70% 14.00With Prolongation of Project Schedule, there are high risk of some equipments getting damaged before commissioning and repair / replacement shall be needed for some parts of the same.

Processing Risk

Consortium Partner -Possible Supports for NCC

21.08 50% 10.54Consortium Partner NCC may have claim on PTIN, on account of changes or deviations on the Project Specifications.

Processing Risk

Commercial Aspects

5.51 50% 2.75

Risk on account of Forex Hedging

Risk Synopsis



Author / Department


Processing RiskAdditional Risk on account of Insurance Extension

6.00 70% 4.20Extension of Project Insurance till June 2017

Processing Risk

Additional Risk on account of Additional Man-power

54.96 70% 38.47Additional Manpower required for Prolongation of Project, till June’2017.

Liquidated Damages

Liquidated Damages for Delay

150.90 70% 105.635% OF CONTRACT PRICE AS PER LD CLAUSE, DELAY IN APPROVAL OF BASIC ENGG AND LAYOUT OF THE PROJECT MAY LEAD TO DELAY IN COMPLETION OF ERECTION, COMMISSIONING AND PG TESTS.

Risk Synopsis



Author / Department


Liquidated Damages

Liquidated Damages for Delay

24.70 70% 17.295% OF CONTRACT PRICE AS PER LD CLAUSE, DELAY IN APPROVAL OF BASIC ENGG AND LAYOUT OF THE PROJECT MAY LEAD TO DELAY IN COMPLETION OF ERECTION, COMMISSIONING AND PG TESTS.

Warranty

Extended Warranty due to extended commissioning & site delay

80.71 50% 40.35WARRANTY OBLIGATION @ 2.5% OF THE CONTRACT PRICE AS RETENTION AGAINST FAC.

Warranty

Extended Warranty due to extended commissioning & site delay

7.09 50% 3.55WARRANTY OBLIGATION @ 2.5% OF THE CONTRACT PRICE AS RETENTION AGAINST FAC.

Total 289.95

Risk Synopsis


NMDC Limited, - Sinter PlantProject Review – 28/04/2015Areas Of Concern

1.Change of Name and Contract Amendment (leading to holding of all dispatch of equipments to site and invoicing / payment from customer)

2.DCC for Intensive Mixer EIRICH including electrics missing.

3.Increase of Labor at Site, from 500 now to 950 by NCC.

4.Extension of Contract beyond Nov’15.

nmdc sp presentation_23_04_15-pt

Documents

sinter plant project

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