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BHILAI STEEL PLANT Page-1/3 Page-2/3 Page-3/3
REPLACEMENT OF STAND # 6 AND #8 IN MERCHANT MILL Base date: 1st Qtr 2010 #REF! #REF!
** DETAILED CAPITAL COST ESTIMATE** Figures in Rs. Crore Figures in Rs. Crore Figures in Rs. Crore
CD CVD ADC IT ED CST E&C VAT Ser. Tax Entry tax Contingn
7.5% 8.24% 4% 11.8% 8.24% 2% 7.5% 12.5% 10.30% 1% 5%
cd cvd it adc entry
2.56 2.56 2.56 2.30
0.192 0.21 0.10 0.10 0.05 0.190 0.05 0.01 0.02 0.13 1.06
Sl.No SHOP/FACILITY/PACKAGE FC EQUIPMENT SPARES TECHNOLOGICAL STRS. BUILDING STRUCTURES REFRACTORIES CIVIL ERECTION ENGG. & CONSTRN. FRT. & INS. IMPORT DUTIES, IT & CESS EXCISE DUTY & TAXES KNOW-HOW TRAINING OTHERS CONTINGENCY TOTAL CAPITAL COST
ADOPTED Imported Indigenous Imported Indigenous Imported Indigenous BOUGHT OUT SITE FAB. . Imported Indigenous Indigenous Equipment Structure Refractories Dismantling Contractor's Owner's Ocean Inland CD CVD ITax on ADC Entry tax Excise Sales Edu cess VAT/WCT Service Tax
HW SW HW SW Imported Indigenous Indigenous Imp. Imp. Ind. FS Duty Tax
FC FC LC LC FC LC FC LC FC LC LC FC LC LC LC LC LC LC FC LC FC LC FC LC LC LC LC LC LC FC LC LC LC LC LC FC LC FC LC FC LC FC LC FC LC TOTAL 0.00
a b c d e f g h I j k l m n o p q r s t u v w x y z aa ab ac ad ae af ag ah ai aj ak al am an ao ap aq ar as at au av aw 0.00
0.00
1 SEK
Ho using Less Stan ds an d its
asso ciated facilities
2.60 2.08 2.56 2.05 0.04 0.05 0.64 0.51 0.00 0.75 0.94 0.30 0.24 0.12 0.15 0.41 0.16 0.08 0.05 0.21 0.25 0.11 0.13 0.06 0.21 0.06 0.02 0.03 0.22 0.00 0.00 0.19 0.25 3.88 5.31 9.18
ANNEXURE 6.1.1-1
S T E E L A U T H O R I T Y OF I N D I A L I M I T E D Base date: 1st Qtr 2010
BHILAI STEEL PLANT Figures in Rs. Crore
REPLACEMENT OF STAND # 6 AND #8 IN MERCHANT MILL
2 IDC 0.28
3 CAPITAL COST 5.15 2.60 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.64 1.39 0.94 0.29 0.16 1.29 0.06 0.00 0.00 0.44 0.19 9.46
4 Cenvat credit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.82
5 Capital cost net of cenvat 5.15 2.60 0.00 0.00 0.00 0.00 0.00 0.00 0.05 0.64 1.39 0.94 0.29 0.16 1.29 0.06 0.00 0.00 0.44 0.19 8.63 3.88
Annexure-1
WATER SYSTEM
0.00
CAPITAL COST ESTIMATE (SUMMARY)
3 Structures 0.00
4 Refractories
11 Contingencies 0.44
0.35
12 Total Plant Cost 9.24
6.27
13 IDC 0.28
0.19
14 Capital Cost 9.52 6.08
15 Cenvat Credit 0.82 0.52
16 Capital Cost net of cenvat 8.70 5.56
Annexure-6.5.2-1
Frequancy of Stand # 6 & 8 changing due to roll breakage (08- Time/yr 3.00 1.00
09) REPLACEMENT OF STAND # 6 AND #8 IN MERCHANT MILL
Frequancy of Stand # 6 & 8 changing due to rolling of 100x50 Time/yr 13.00 10.00
channel (08-09) FINANCIAL ANALYSIS
Frequancy of Stand # 6 & 8 changing for profile/section Time/yr 12.00
change (08-09) 17.00
Total change Time/yr 88.00 63.00
1 Capital Cost (Net of Cenvat) Rs crore 8.63
Time required for existing housing change @1.5 hr/change Hr/yr 132.00 94.50
Time required for change of Housing less Stand @ 0.33 Hr/yr 29.04
hr/change (@20 minutes/change) 2 Gross Margin Rs crore 5.18
Additional Hot Hours Available Hr/yr 102.96 37.50
3 NPV @ 10% discount rate (Pre-tax) Rs.crore 27.21
(B) Saving in delays
Operation delays (08-09) Hr/yr 16.24 16.24 4 NPV @ 10% discount rate (Post-tax) Rs.crore 16.45
Mechanical delays (07-08) Hr/yr 4.58 4.58
Total delays Hr/yr 20.82 20.82 5 IRR (Pre-Tax) % 42.18%
Additional hot hrs available Considring 50% saving Hr/yr 10.41 8.33
Total Hot hours (A+B) Hr/yr 113.37 45.83 6 IRR (Post-Tax) % 31.60%
(C) Additional production of TMT bar considering rolling Rate of T/yr 10704 4692.79
102.40t/hr(08-09) and mill utilisation of 92.2% (08-09)
(D) Equivalent Billet considering yield of 96.3% (08-09) T/yr 11115 5089.79
(E) Additional contribution from TMT Rs Cr 9.35 4.10 0.000873
(F) Loss of contribution from Billets Rs Cr 4.16 1.83 0.00039
(G) Gross Margin Rs Cr 5.18 2.27
SENSITIVITY ANALYSIS
Profit After Tax (PAT) 0.3580 2.04 2.55 2.71 2.85 2.98 3.10 3.15 3.19 3.22 3.25 3.28 3.30 3.32 3.33 3.35 3.36 3.37 3.40 3.42 1.71
Cumulative PAT 0.3580 2.40 4.95 7.66 10.51 13.49 16.59 19.74 22.93 26.15 29.41 32.69 35.99 39.31 42.64 45.99 49.35 52.71 56.12 59.54 61.25
Start of prod.
Cash flow statement
Cash-Inflows : Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22
A. Cash from operations 0.00 2.0735 4.67 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 2.59
B. Equity/ Internal accruals 2.35 2.3754 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Loan incl. MM 2.35 2.3754 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 4.70 6.8244 4.67 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 2.59
Start of prod.
NPV & IRR CALCULATIONS:
Item Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22
Outflow
Capital Cost (excl. IDC) 4.59 4.5902 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Production Loss 3.5717 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporate Income Tax 0.00 0.1843 1.05 1.32 1.40 1.47 1.53 1.60 1.62 1.64 1.66 1.68 1.69 1.70 1.71 1.72 1.72 1.73 1.73 1.75 1.76 0.88
Inflow
Gross margin 0.00 2.0735 4.67 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 2.59
CENVAT Credit 0.4118 0.41
0.0000
Net flow
Pre-tax -4.59 -5.6766 5.08 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 2.59
Post Tax -4.59 -5.8609 4.03 3.87 3.79 3.72 3.65 3.59 3.56 3.54 3.52 3.51 3.50 3.48 3.48 3.47 3.46 3.45 3.45 3.43 3.42 1.71
NPV (@ 10%), Rs Cr
Pre-tax 27.21
Post-tax 16.45
IRR 42.1761 31.60
Pre-tax 42.17
Post-tax 31.60%
year1 year2 year3 year4 year5 year6 year7
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
0.32 0.29 0.26 0.24 0.21 0.19 0.17 0.15 0.14 0.12 0.11
1.95 1.98 2.01 2.03 2.06 2.08 2.10 2.12 2.13 2.15 2.16
0.64 0.65 0.66 0.67 0.68 0.69 0.69 0.70 0.70 0.71 0.71
1.31 1.33 1.35 1.36 1.38 1.39 1.41 1.42 1.43 1.44 1.45
7.67 8.99 10.34 11.70 13.08 14.47 15.88 17.30 18.73 20.17 21.61
1.63 1.62 1.61 1.60 1.59 1.58 1.58 1.57 1.57 1.56 1.56
year 8 year 9 year 10 year 11 year 12 year 13 year 14 year 15 year 16 year 17 year 18
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
0.64 0.65 0.66 0.67 0.68 0.69 0.69 0.70 0.70 0.71 0.71
0.64 0.65 0.66 0.67 0.68 0.69 0.69 0.70 0.70 0.71 0.71
1.63 1.62 1.61 1.60 1.59 1.58 1.58 1.57 1.57 1.56 1.56
7.79 9.41 11.02 12.62 14.21 15.79 17.37 18.94 20.50 22.07 23.62
year8 year9 year10 year11 year12 year13 year14 year15 year16 year17 year18
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.64 0.65 0.66 0.67 0.68 0.69 0.69 0.70 0.70 0.71 0.71
0.64 0.65 0.66 0.67 0.68 0.69 0.69 0.70 0.70 0.71 0.71
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
1.63 1.62 1.61 1.60 1.59 1.58 1.58 1.57 1.57 1.56 1.56
year19 year20 year21 year22
CCFG : 03
STEEL AUTHORITY OF INDIA LIMITED
BHILAI STEEL PLANT
REPLACEMENT OF STAND # 6 AND #8 IN MERCHANT MILL
Rs. Lakh
Sl. SHOP/FACILITY/PACKAGE FC QUANTITY BASIC COSTS (in INR) BASIS OF COSTS ESTIMATES & Remarks
No. adopted Imported Indigenous Imported Indigenous Order value/Engg.estimate/BQ Enclosed
Nos. Weight Unit No. (enclose supporting document Doc.Ref.
t HW SW HW SW like order copy/ Budgt.Qtn. etc.) ** No.
a b c d e f g h i j k l
[A] Equipment SEK
1 Housingless stands(2 Nos) Set 1 163.25 8.10 BQ of M/s Danieli Morardshammer ,
including bed plate, restbars, Feb'8 and order value of HS stand
water manifold, set of pipes & 9,10, 12 oct'04 escltd
hoses,clamping device