Detailed Feasibility Report and its Preparation in Steel Sector...

Detailed Feasibility Report and its Preparation in Steel Sector A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of a proposed project, opportunities and threats present in the environment, the resources needed to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost needed and the value to be attained. A well-designed feasibility study provides a background for the project, a description of the project, accounting statements, technical details, and financial data. Generally, feasibility study includes technical development and project implementation. It evaluates the project’s potential for success and hence, perceived objectivity is an important factor in the credibility of the feasibility study for potential investors and lending institutions. It is necessary, therefore, that the feasibility study is conducted with an objective, unbiased approach to provide information upon which decisions can be based. Feasibility report is a base document for a steel project for the decision making with respect to investment in the project. Depending of the stage of the project, when the feasibility report is made, it is known as pre-feasibility report (PFR), feasibility report (FR), or detailed feasibility report (DFR). It is obvious that DFR is more accurate than FR both in technical aspect or financial analysis aspect. PFR study is a preliminary study undertaken to determine, analyze, and select the best alternative among several alternatives, both technically and financially. It is difficult and it takes time if each of the alternatives is studied deeply. Hence, shortcut method deems acceptable in the early stage is used to determine minor components of investment and production cost. If the selected alternative is considered feasible, then normally the study at the FR or DFR is taken up to get deeper analysis of the selected project scenario. Technically...

Phases in the Design and Construction of a Steel Plant Jul10

Phases in the Design and Construction of a Steel Plant...

Phases in the Design and Construction of a Steel Plant  Steel plant is a project which is highly capital intensive and need a very long time for its construction and commissioning. Further steel plant is to operate for a very large number of years after commissioning and during this period steel plant has to cope with the changes in the operating environment. Hence proper decision making is of utmost importance during the different phases of the plant till commissioning.  Any faulty decision during the implementation phase can create a lot of problems for the operating personnel and they have to live with the problem throughout the life of the plant. Various phases of the design of a steel plant and the decisions needed during these phases are described here. Selection of product mix Steel plant is set up to produce certain primary steel products which are required by the customers. During the production of primary steel products, some secondary products and by products are also produced which are to be sold. Selection of the product mix is a very important decision making process since the technology and production process selection in the plant depends on the product mix. Criteria for selection of the product mix include market survey, future demand projections by dependable agencies, and government policies and projections etc. Another important criterion for the selection of the product mix is the type of market the plant is to serve after commissioning. The market can be (i) captive use, (ii) local market, (iii) national market, (iv) export market, or (v) all of them. Site selection and land acquisition After the product mix is frozen the next step is the selection of site for the steel plant. The selection of a suitable site is a...