“MATERIALS” GROUP UNDER SUB GROUP 7 OF WORKING GROUP ON POWER

“MATERIALS” GROUP UNDER SUB GROUP 7

1st meeting of the above group held on 27.06.2011 at BHEL New Delhi. The meeting was attended by CEA, SAIL, NALCO, CMA, IEEMA, PGCIL, FIMI, MoMines.

2nd meeting held on 04.07.2011 at BHEL New Delhi. The meeting was attended by CEA, SAIL, CMA, PGCIL, FIMI, MoMines.

AREAS COVERED Capacity addition projections Material requirement

Cement Structural steel Reinforcement steel Castings & Forgings for TG sets Tubes & Pipes Thick Boiler Quality Plates Copper, Aluminum, Zinc Thermal insulation CRGO steel

Impediments Short circuit testing facilities Gas Insulated Substation EHV XLPE cables

New Initiatives Materials for Advanced Ultra Supercritical Thermal Power Plants

Constraints/ Policy supports CRGO, CRNGO, Thick Boiler Quality Plates

Recommendations

CAPACITY ADDITION PROJECTIONS

The likely capacity addition during 11th Plan would be about 52000 MW. Further, the capacity likely to be added during 12th plan would be 76489 MW and during 13th Plan would be 96200 MW as per the all India demand supply analysis carried out by CEA.

MW Plan Thermal Total Thermal Hydro Nuclear Total

Coal & Lignite Gas 12th Plan 63430 1086 64516 9173 2800 76489 13th Plan 78600 - 78600 12000 5600 96200

MATERIAL REQUIREMENTS FOR GENERATING STATIONS

Cement & Steel for Thermal Projects were considered keeping in view the norms developed by CEA and historical data for NTPC’s Plants.

Lakh MT

Material

12th Plan

13th Plan

76489 MW

96200 MW

Cement

188.81 243.54

Structural Steel

60.14 76.71

Reinforcement Steel

38.68 49.44

Based on norms developed by CEA and historical data of PowerGrid

12th Plan Lakh MT

Line Cement Steel Reinforcement Tower Conductor /

Earth wire Spl. Steel for Substations

765 KV 11.2 2.2 14.8 1.3 0.16 HVDC 2.6 0.6 4.2 0.3 - 400 KV 7.4 3.2 9.5 1.9 0.40 220 KV 1.3 0.5 1.3 0.2 1.12 132 KV 0.5 0.1 0.4 0.1 2.00 Total 22.9 6.5 30.1 3.9 3.7 13th Plan

Lakh MT Line Cement Steel

Reinforcement Tower Conductor / Earth wire

Spl. Steel for Substations

765 KV 12.3 2.4 16.3 1.4 0.2 HVDC 2.9 0.7 4.6 0.4 - 400 KV 8.0 3.4 10.3 2.1 0.5 220 KV 1.5 0.6 1.4 0.3 1.2 132 KV 0.5 0.1 0.4 0.1 2.1 Total 25.2 7.2 33.0 4.3 4.0

MATERIAL REQUIREMENT FOR POWER SYSTEM NETWORK

Total requirement of Cement for Power Sector* is projected to be 211 lakh MT and 269 lakh MT for 12th and 13th plan respectively. The production of Cement for the year 10-11 was 2310 lakh MT (CMA).

Total requirement of structural steel* is projected to be 90 lakh MT and 110 lakh MT for 12th and 13th plan respectively. The production of structural steel for the year 10-11 was 55 lakh MT (JPC).

Total requirement of reinforcement steel is projected to be 45 lakh MT and 57 lakh MT for 12th and 13th plan respectively. The production of structural steel for the year 10-11 was 244 lakh MT (JPC).

REQUIREMENT OF CEMENT & STEEL

* Excluding Distribution system networks & power and distribution transformers

As per the details provided by Equipment Manufacturer* for thermal 500/660/800 MW sets assuming 60% supercritical sets in 12th plan and 100% supercritical sets in 13th plan.

Indigenous capacity for Tubes & Pipes is projected as 4.4 lakh MT and 5.3 lakh MT for 12th and 13th plan respectively.

REQUIREMENT OF OTHER MATERIALS

* BHEL

Lakh MT

Material 12th Plan 13th Plan

64516 MW (Thermal) 78600 MW (Thermal)

Castings for TG Sets 0.41 0.44 Forgings for TG Sets 0.41 0.4 Tubes & Pipes 7.0 8.6 Thick Boiler Quality Plates (Imported Plates)

1.0 1.0

REQUIREMENT OF OTHER MATERIALS – COPPER, ALUMINIUM

Power Sector requirement of Copper would be approx. 12.5 lakh MT* for the 12th plan. This is expected to grow at a CAGR of approx. 10% p.a. At the end of 12th plan, the projected production of Copper is 15.0 lakh MT** p.a.

Projected production of Aluminium is 145.58 lakh MT during 12th plan and 178.82 lakh MT# during 13th plan. Projected requirement for Aluminium in Power Sector is 12.54 lakh MT and 13.7 lakh MT for 12th and 13th plan respectively.

* IEEMA** FIMI# FIMI & NALCO

REQUIREMENT OF OTHER MATERIALS - ZINC

Requirement of Zinc based on industry norms. The annual production capacity of Zinc is 10.0 lakh MT*.

Lakh MT

Material 12th Plan 13th Plan Transmission Towers

Transmission Conductors / Earth wire

Transmission Towers

Transmission Conductors / Earth wire

Zinc 1.8 0.2 2.0 0.24

Total 2.0 2.24

* Source - FIMI

REQUIREMENT OF OTHER MATERIALS – THERMAL INSULATION

Average thermal insulation requirement for a 500/660/800 MW unit is about 2000 MT* per set. For thermal capacity addition of about 64516 MW in 12th Plan and about 78600 MW in 13th Plan, thermal insulation requirement in 12th Plan and 13th Plan would be about 2.1 lakh MT and 2.7 lakh MT respectively.

* Source - BHEL

TOTAL REQUIREMENT OF VARIOUS MATERIALS FOR CAPACITY ADDITION PLANNED DURING 12TH & 13TH

PLANS Lakh MT

Material 12th Plan 13th Plan 76489 MW 96200 MW

Cement** 211.71 268.74

Structural Steel** 90.24 109.71

Reinforcement Steel 45.18 56.64

CRGO Steel (as per IEEMA) 11.5 13.5

Castings* 0.41 0.44

Forgings* 0.41 0.4

Special Steel for Sub-Stations 3.7 4.0

Steel for Conductors in Transmission system

Lines 3.9 4.3

Aluminium 12.54 13.7

Copper (as per IEEMA) 12.5 20.0

Zinc** 2.0 2.24

Thermal Insulation* 2.1 2.7

Tubes & Pipes* 7.0 8.6

Thick Boiler Quality Plates (Imported)* 1.0 1.0

* Excluding Nuclear & Hydro ** Excluding Distribution system networks & power and distribution transformers

IMPEDIMENTS

Lack of Short Circuit Testing Facilities in India for large Power transformers of 100 MVA and above. Initiative by National High Power Test Laboratory Private Limited (NHPTL - a Joint Venture of NTPC, NHPC, POWERGRID & DVC) to develop “On Line High Power Short Circuit Test Facility” in India expected by Dec’2012.

Gas Insulated Substation: 220 kV and above GIS are being imported. One indigenous manufacturing facility has come up recently (M/s Areva). Further manufacturing capacity needs to be augmented.

EHV XLPE cables: Indigenous Manufacturing facilities needed for 400 KVA and above.

NEW INITIATIVES

Materials for Advanced Ultra Supercritical Thermal Power Plants

The development of Advanced Ultra Supercritical (Adv-USC) (steam parameters: pressure ≥300 kg/cm2, temperature ≥700 °C) technology for thermal power plants has been initiated under the proposed National Mission for Development of Clean Coal (Carbon) Technologies.

BHEL, NTPC and IGCAR (Indira Gandhi Centre for Atomic Research) have been identified as the partners for developing the technology and setting up an 800 MW Adv-USC power plant.

CONSTRAINTS/ POLICY SUPPORT

CRGO* Critical and strategic input for Power transformers Worldwide only 12 manufacturers controlling the supply,

sales and prices Total worldwide production 18.5 lakh MT against present

Indian consumption of 2.5 lakh MT p.a. (fully imported) Restrictions imposed on imports by Quality Control Order (dt:

24.06.2011) of Ministry of Steel with mandatory BIS certification – only six months time given for certification while as per BIS, minimum time required for certification is six months

Restriction of competition to only BIS certified suppliers will drive the cost of Power Sector equipements

Supply constraints may lead to disruption of manufacturing of Power and Distribution transformers impacting National Power Capacity addition program

Similar situation for Higher grade of CRNGO which is being imported for use in Electrical Rotating Machines* Source - IEEMA

CONSTRAINTS/ POLICY SUPPORT

Boiler Quality Thick Plates* Presently BQ plates thickness above 63 mm with

required width and length being imported. Projected requirement is 1 lakh MT each for 12th and 13th plan

Only 4-5 qualified foreign Steel Mills Indigenous capacities being built up by Welspun,

JSPL, Essar and SAIL may meet partial requirement Also put under mandatory BIS certification reqmt. Restriction of competition to only BIS certified

suppliers will drive the cost Supply constraints may lead to disruption impacting

National Power Capacity addition program

* Source - BHEL

RECOMMENDATIONS

There is no likelihood of shortage of key materials (except CRGO, higher grade CRNGO, thicker boiler quality steel plates) including the imports requirements

For power capacity addition planned for 12th and 13th plans, detailed analysis needs to be done by Planning Commission considering requirement of all sectors of the economy.

Thank You