PROJECT PROPOSAL SHEET

Part - 1
Business Requirement
Project Objective

Strategic Importance of the project

Business processes impacted by the
project
Project Constraints

Project Purpose
Transportation of coal from our coal mines to plant and
Transportation of ash from power plant to mines end.
To meet the uninterrupted supply of coal to plant site and
disposed ash of power to the mines end.
To provide the non coking coal in bulk quantity to power plant and
coal gasification plant from mines to plant within stipulated time
period. To disposed the ash of power plant to mines end in bulk
within specified time.
Over all impact of this infrastructural facility is to reduce the time &
cost. To have the smooth and uninterrupted operation.
Land acquisition of private & reserve forest land and trees cutting
through out the length of the belt pipe conveyor.

Part - 2

Project Description / Details

Date

Order placed on 11/12/08 for supply and execution

Title of the project

Coal transportation by belt pipe conveyor from mines to plant site

work for 6.0 MTPA integrated steel & power plant.

Classification of project

Infrastructure

Cost Saving

Manpower Reduction

Enchancing Production

Any Other

This 4.974 Km long belt pipe conveyor with a

capacity of 2000 TPH shall receive coal from mines,
transport to the plant site and discharge at the plant
end and in the return side shall receive Ash
collected from Power plant, transport to the mines
site and discharge at the mines end.
Project Description

Project Priority

Form No. DPM-02

For pipe conveyor design & Engineering Macmet has technical

collaboration with BRIDGESTONE TPE CO, JAPAN
Tangible:- To have constant & consistent supply of coal for 6.0
MTPA integrated steel & power plant.
Intangible:- No obstacles for getting non coking coal for 6.0 MTPA
integrated steel & power plant.
Pollution can be avoided, which would have occurred due to
transportation through road.
Immediate
Y

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Long Term Planning

Part - 3

Project Financials

Estimated Project Capex

95.98 Crore INR

Estimated incremental revenue / cost

savings from the project

N/A

Return On Investment

Part 4
Estimated time for completion of
project

Estimated start and completion dates

of major milestones

Part 5

As per the Capital Budgeting Process, Finance department, do

the following:
i. Estimate the NPV as a % of total Project Capex
ii. Sensitivity Analysis
iii. Estimate project break even as percentage capacity utilization
Approximate cost of transportation per MT of coal: by Road: Rs.
65/- and by pipe conveyor: Rs. 10/- i.e. a saving of Rs. 55/- per
MT.
Total qty of coal to be transported from Mines: 5.5 MTPA
Hence saving per year: 30.25 Crores
Payback period: 3 years 3 months

Project Timeline
18 months for completion and commissioning from the date of
issue of this Work Order + 3 months for demonstration of
performance guarantee parameters.
Start & Completion of Survey: Dec,08 to Jan,09
Start & Completion of design and engineering: Feb,09 to April,09
Approval of drawing :- July,09
Start & Completion of Civil work: Aug,09 to Mar,10
Start & Completion of Mechanical work: June,09 to March,10
Start & Completion of Mechanical erection work: Oct,09 to May,10
Start & Completion of Electrical work: Nov,09 to May,10
Start & Completion of testing & trial run: May,10 to June,10
Commissioning, transportation of coal from mines to plant:July,10

Project Risks
To get the land clearance for Reserve forest and Private land for
execution of the project.

Project Risks
For acquisition of reserve forest and private land necessary steps
have been taken.

Part 6
Recommendation

Form No. DPM-02

Recommendation & Signatures

Recommendation by the Project Idea Assessment Team (PIAT)

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Proposal prepared by

N.Padhy

Proposal forwarded by

DK Saraogi

Business Unit Head

Form No. DPM-02

VC & CEO

Rajesh Jha

EVC & MD

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