6 sunil bhatt

7/30/2019 6 Sunil Bhatt

1/35

EPC Contracting of

Balance of Plant

A Sensible Option

Sunil Bhat

22 May, 2012

BoP Systems

Conference, New Delhi


2/35

1 SB | BoP Systems Conference | 22 May, 2012

Agenda

BoP the show stopper

Power Project Contracting Options

Pros and Cons of each Options

EPC Vs Package Route

L&Ts EPC business landscape in Power Sector


3/35


Agenda







4/35


BoP - the show stopper

BoilerIsland29%

TurbineIsland20%

CHP9%

AHP

4%

CoolingTower

4%

Water System4%

Fuel Oil System2%

Electrical7% C&I

1% Chimney1%

Civil Works15%

Spares3%Others

1%

BoP

51%

Cost break-up of a typical 660 MW

BoP Systems execution determines the

success of a power project on Time, Schedule

and Cost parameters

BoP contributes toapprox. 50% of the

capital cost thus

among the most

important cost pillar

While BTG island inTechnology &

manufacturing

intense, BoP island in

Integration & site

activity intense

Almost 74% of delayed powerprojects delayed due

to non-readiness of

BoP system

Source : CERC


5/35


Agenda







6/35


Power Project Contracting Structures

Entire project is broken into multiplepackages (close to ~ 25 40 packages)Multiple Packages

BTG is ordered as a single EPC packagehowever BoP is broken into multiple

packages

BTG - EPC

BoP - Multiple Pkgs

Two EPC orders placed.

One for BTG and the other for BoP

EPC BTG

EPC BOP

A Single EPC order for the complete powerplant project

Includes both BTG and BoPComplete EPC

BoP ordered in Multiple Package

BoP ordered as EPC


7/35


Agenda







8/35


Multiple Package Route

Developer

Contractor # nContractor # 1

Responsibility Matrix - Developer

Project

Mgmt

Interface

Mgmt

Intra Pkg

Engg

Intra Pkg

Co-

ordination

Advantages

Least cost ofPurchase

Total Control overindividual Vendor

Selection Total Control over

individual packagespecification

Responsibility Matrix - Contractor

Package Schedule Package Performance


9/35



Developer



Project

Mgmt

Interface

Mgmt

Intra Pkg

Engg

Intra Pkg

Co-

ordination

Drawbacks

Requires large numberexperienced staff formicro level ProjectMonitoring

Team to havecompetency in ProjectManagement, InterfaceManagement

Large ordering cycletime

Concentrates onindividual packageguarantee parameters




10/35



Developer



Project

Mgmt

Interface

Mgmt

Intra Pkg

Engg

Intra Pkg

Co-

ordination

Successful with

Developers having in-house EPC teamexperienced inEngineering & ProjectManagement

Developers having EPCsubsidiary




11/35


EPC Route

ECPContractor

Developer

Contractor# n

Contractor# 1


Project Management

Interface Management

Intra Package Engineering

Intra Package Co-ordination

Plant Level Performance Guarantee

Advantages

Single pointresponsibility

Integrated PlantLevel Performance

guarantee Less manpower

requirement fordeveloper


12/35


EPC Route

ECPContractor

Developer

Contractor# n

Contractor# 1


Project Management





Drawbacks

Higher initialcost

Less control onproject schedule

Less control overvendor selection


13/35


EPC Route

ECPContractor

Developer

Contractor# n

Contractor# 1


Project Management





Successful with

SEBs who donthave huge teamfor project

management

Private IPPs


14/35


Agenda







15/35

Package Route Vs EPC

Attribute Package Route EPC Route

Project Engineering External Consultant to beappointed. Owner bears

additional Cost

EPC Contractor

Responsibility

InterfaceEngineering

Owner has to co-ordinate.

Owner bears additional

manpower and risk

EPC Contractor

Responsibility

Probability of Timelycompletion ofProject

Low due to Multiple

vendors

High due to single vendor

responsibility and higher

stakes

Project Cost Uncertain : Default of evenone vendor adversely

impact project completionschedule

Assured : Minimal

variations expected

Project Management High cost as large staff tobe employed by Owner

Minimal cost as single

vendor employed


16/35

Package Route Vs EPC

Attribute Package Route EPC Route

FunctionalGuarantees

Numerous : Owner to

handle multiple contractors

for equipment / system

level performance

guarantees

Key Plant level

performance guarantees :

EPC Contractors single

point responsibility

Benefits of designstandardization andoptimization

Difficult : Largely

dependent on Owners

experience / practices

Easy : EPC contractors are

better equipped & updated

to provide value for money

Selection ofReputed & reliable

Contractors

Difficult to maintain

uniformity in contractors

competence and capabilitylevels

Easy : Selection restricted

only to performing and

competent EPC contractors

After sales servicesSupport

Low : Small size contractor

/ vendors

High : Reputation at stake


17/35

Single Point Responsibility for Design, Engineering,Supply, Erection & Commissioning

Simpler co-ordination requirement One point contact.Minimum staffing required from end user organization

Minimum Finance risk

Minimal schedule risk Least Interfacing related issues between sub systems,

thereby faster commissioning

Flexibility during engineering for design changes withoutaffecting overall schedule

Enforceable Guaranteed Plant performance Stiff Penalties that are levied as percentage of total package

cost is a big deterrent

EPC Value Proposition


18/35


Agenda







19/35

L&T Power: Many facetsL&T-MHI

STG

L&T-MHI

Boiler IslandL&T-Howden

Fans & APHs

L&T-S&L

Engineering

Gas

EPC

PipingCentre

Foundry

CoalEPC

/STGI

TPPC

ESP

L&T-BMH

-Coal HandlingPlant

-S/R, Wagon T

L&T-ECC/EBG

-E&I

-Control &Automation

L&T-Valves

-Valves &Fittings

L&T-HED-Heater

-Condenser

-Deaerator

L&TPOWER

In-house Capabilities are 85% of Total Power Plant Offerings


20/35

Water systems

Fuel Oil System incl

Storage

Feed Cycle Equipment

Power Cycle Piping

LP Piping

CHP, AHP

Compressed Air System

HVAC

Fire Protection

LV Switchgear

Electrical BOP

Control rooms

Civil Works for Main

Plant, Power House &

BOP

Cooling Towers

Chimneys

Erection of Boilers STG /

GTG, ESP

Civil Works & BOP


21/35

Civil & Construction

Extensive experience inconstruction of all types of

Power Plants

Coal based

Gas based Open Cycle

Gas based Combined Cycle

Co-generation

330 MW PPN CCPP

660 MW Sipat

Kayamkulam CCPP


22/35

Steam Generators &

auxiliaries

GTG / STG & auxil iaries

HRSG

HP & LP piping

Ducting & refractory/ lining

Inland Transportation &

Stores Management at site

Welding new alloys - X20,

P91.

Erecting the first of any

type of Boiler in India

110, 200, 300, 500, 660 MW

Power Block Erection


23/35

5x660 MW Adani Power, Mundra Boiler Erection


24/35

4x600 MW Jharsuguda (Sterlite Energy Ltd.)


25/35

2x 250 MW CESC Budge Budge 210 MW NEYVELI TPS

Chimney


26/35

Induced Draft

Natural Circulation

Cooling Tower


27/35

HP FW Heater LP FW Heater

Rectangular Condenser Circular Condenser

In-house manufacturing


28/35

Technology based equipment for

Sizing & Conveying

Stockyard preparation machines

Wagon loading & marshalling system

Main Activ ities

Design & Engineering

Manufacturing & Supply

Construction, Testing &

Commissioning

Performance testing, training and after

sales service

Coal Handling Plants (CHP)


29/35

CHP our track record

In Power Sector, 31 CHPs has been installed by L&T ti ll date

12 Track Hoppers ranging from 110 mtr to 310 mtr length

More than 100 KM conveying system upto 4000 TPH

58 Paddle Feeders upto 2400 TPH

69 Crushers upto 1875 TPH

13 Apron Feeders upto 1500 TPH

Largest capacity CHP in Power sector 3200 TPH for NTPC Barh (3 x 660 MW)

Wagon Shifter Indiabulls, Nasik 5x270 MW (under execution)

Asias longest Track Hopper of 310 mtr long at NTPC Kahalgaon & Barh

In house manufacturing facilities for key CHP equipment and dedicated vendor base

for other components

AMC/ O&M contracts


30/35

CHP - Wagon Tippler

20 Wagon Tipplers up to 24 tips / hr

First Wagon Tippler supplied at Kothagudam T.P.P (Year 1987)


31/35

BOOM LENGTH: 41 M

STACKING CAP: 3300 TPH

RECLAIMING CAP: 3750 TPH (PEAK)

CHP-Reversible Stacker Cum Reclaimer

29 Stacker Reclaimers upto 4000 TPH


32/35

Switchyard

Design, detail

engineering, supply, erection, testing& commissioning :

33KV to 440KV Switchyards

220KV to 400KV Gas InsulatedSubstations


33/35

Other Competencies

Station Switchgear, SPBD

Service Transformers, Non

SPBDs

MV / LV Swi tchgear

HT / LT Cabl ing

Illumination System

Earthing & Lightning

Protection

Switchboards (PCC / MCC)

C&I (including PLC, SCADA

& Telemetry, dr ives)


34/35


L&T Value Proposition

BoilerIsland29%

TurbineIsland20%

CHP9%

AHP4%

CoolingTower

4%

Water System4%

Fuel Oil System2% Electrical

7% C&I1% Chimney

1%

Civil Works15%

Spares3%Others

1%

BoP51%

Cost break-up of a typical 660 MW

L&T In-house Capability

L&T has in-housecapability for Super-

critical & Ultra-

Supercritical BTG

for ratings upto

1000 MW

In addition, L&T hasmore than 85% of

BoP package

capabilities in-

house

Because of majorityin-house

capabilities, L&T is

best placed to

delivery projects onscheduled.


35/35

6 sunil bhatt

Documents