Fig-5: Share of Private Sector for Finished steel production/ sale in India⁽¹⁾

Indian Steel Industry is highly fragmented with a variety of process routes and thousands of small and medium units for iron and steel making and also downstream processing. Even in Integrated Steel Plants, diverse process routes for iron making are adopted, not visible elsewhere. Steel making process is going considerable change and new processes are being adopted to use various grade of iron ore, coal and gas. All these processes have an aim to make cheap steel and conserve energy. Secondary process for steel making in India is emerging by adopting an advance technology of DRI/MBF-EAF/IF-CC-RM route. Over the years, there has been noticeable growth in the units of pig iron, sponge iron, EAF, IF and re-rolling segment.

2.2 Challenge for Steel industries

There have been almost revolutionary changes in the global steel scene with fierce competitive pressures on performance, productivity, price reduction and customer satisfaction. National boundaries have melted to encompass an ever increasing world market. Trade in steel products has been on the upswing with the production facilities of both the developed and the

Developing countries complementing each other in the making of steel of different grades and specialty for the world market.

The challenges that confront Indian steel industry in the age of globalization are complex in nature. The secret of sustainable turnaround lies in how Indian steel industry faces the challenges and develops combative and anticipatory prowess.

Challenge for Indian Steel industries

· Lower Consumption in domestic market

· High cost of capital

· Low Labor Productivity

· Poor quality of Infrastructure like Road, port

· Lack of expenditure in R & D

· High cost of basic inputs and services

Table-2: Structure of Indian Steel Industries and its capacity (2010) ⁽⁵⁾

Type of Plant	Number of Units	Total Capacity (MTPA)
BF-BOF based Integrated Steel Plant	8	30.0
EAF Based Integrated Steel Plant	3	10.6
IF based plant	1170	28.8
EAF/ EOF based mini steel plant	37+2	9.5
Gas Based DRI plant	3	8.0
Coal Based DRI plant	418	26.6
Mini BF based Pig Iron plant	42	-
Ferro Alloy Units	173	4.0
Hot Re-Rolling Mills	1794	40.8
Cold Re-Rolling Mills	65	10.2
Galvanising Units	20	5.6
Colour Coating Units	6	0.5
Tin Plate Units	2	0.3
Wire Drawing Units	69	1.2

3. UPCOMING STEEL PLANTS:

Indian Steel Production is bound to grow manifold in years to come to sustain Growth in infrastructure /Construction, Automotive, Capital Goods and Consumer Durable Sector i.e economic growth. Two big global playesr from abroad, Mittal Arcelor and POSCO of South Korea have also planned and made a MoU for set up of new plant. Apart of these, the existing units are being modernized / expanded and a large no. of new Greenfield project have also came up in different parts of the country. List of upcoming expansion and new project is enlisted below^{(7,8,9,10,11)}:

Table-3: Indian Steel Plant: Present and Future Scenario⁽⁶⁾

Present Scenario

Core Technologies

Future Scenario

· Production

India: 96 MT (3^rd Position)

(World: 1629 MT

China: 808 MT (1^st Position))

· Export: 3.8 MT

· Energy Consumption: India ~ 7-8 GCal/tcs (World: 5-6 GCal/tcs)

· Coke rate: India 550-600 kg/THM

(World: 400 kg/THM)

· Continuous casting: India:50-60%

· Production Focus: Structural, Automotive

· Cost competitiveness India $ 415/t

· Modernization of existing plants for higher productivity, energy efficiency and secondary refining)

· Alternative routes using non-coking coal (COREX, ROMELT etc)

· Compact strip production and rheocasting technologies

· Production (2020)

India: 110 MT (2^nd Position)

· Export: +15 MT

· Energy Consumption: India ~ 5-6 GCal/tcs

· Coke rate: 400kg/Thm

· Continous casting: 100%

· Production Focus: Tailor made special steels designed for customer

· High degree of cleanliness with ultra low S, P, and gases

Table-4: List of upcoming steel projects in India

SN	Company	Location	Expansion Project
1	Tata Steel	Jamshedpur	0.6 MTPA Continuous Annealing and Processing Line project
1	Tata Steel	Kalinganagar Odisha	6 MTPA Integrated steel plant
2	JSW Steel	Jharkhand	10 MTPA steel plant and 800 MW power plant
		Salboni, WB	New 10 MTPA steel plant in phases
		Salem, TN	Expansion of production capacity to 2 MTPA at Salem
		Dolvi	Expansion of various existing units
		Kalmeshwar	A new cold rolling mill is being added to raise the existing production level to 0.60 MTPA.
		Karnataka	Addition of Electrical Steel Facility of 0.2 MTPA capacity at Vijayanagar
3	Essar Steel	Odisha	Expansion of Paradip pelletisation plant from 6 to 12 MTPA
4	SAIL	All units	Modernisation and Expansion of its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur and Burnpur and special steel plant at Salem. (Capacity enhancement from 12.8 to 21.4 MPTA)
5	NMDC	Chattisgarh	3 mtpa steel plant at Jagdalpur and 2 pellet plants at Donimalai (1.2 mtpa) and at Bacheli (2 mtpa). Besides, NMDC has acquired Sponge Iron India Limited with plan for expansion to produce billets
5	NMDC	Karnataka	3 mtpa steel plant in Karnataka
6	RINL	Vizag	Under Expansion project for doubling the capacity to 6.3 mtpa of liquid steel
7	JV of NMDC and RINL	Vizag	JV initiative with NMDC for laying 13 mtpa Iron ore Slurry pipe line from Nagarnar to Visakhapatnam and setting up of 6MTPA pellet Plant at Visakhapatnam
8	POSCO India	Odisha	12 MTPA Project is under consideration at Jagatsinghpur 1.2 MTPA at Kalinganagar
9	Arcelor Mittal	---	JV with SAIL for automotive segment

4. PROJECT MANAGEMENT FOR STEEL PLANTS:

The project structure has to different from the organization structure created for running routine business operations, because the nature of activities involved in projects and operation are quite different. Organization structure for project management would be effective only if it allows room for creativity, flexibility, quick response cycle and loosens the line of accountability but strong commitment along with being focused on strategy and plans on one side and being practical i.e. well grounded in reality on the other. However, project management is “the application of knowledge, skills, tools and techniques to project activities in order to meet stakeholders’ needs and expectations from a project”.

Effective Project Management is the key to managing change and innovation successfully in today's rapidly evolving technology domains with in-depth understanding of the concepts and techniques required to manage projects of any capacity and scale. These includes Project Planning, Schedule Management, Project Evaluation and Progress Reporting, Contract Management, Risk Management, Procurement Management and Performance Monitoring, Materials Management, Assistance in Commissioning, Follow-up and expediting Services and Budgetary Cost-Control⁽¹²⁾. Project management processes and techniques are used to coordinate resources to achieve predictable results. The successful accomplishment of the project objective could be constrained by many factors, including scope, quality, schedule, budget, resources, risks, and customer satisfaction. The generic project life cycle has four phases: initiating, planning, performing, and closing the project. Figure 6 shows the five phases and the relative level of effort and time devoted to each phase. The time span of each phase and the associated level of effort will vary depending on the specific project. Project life cycles vary in length from a few weeks to several years, depending on the content, complexity, and magnitude of the project⁽¹³⁾.

Fig-6: Project Management sub-stages

Concept Engineering:

In the initiating phase, projects are identified and selected. They are then authorized, using a document referred to as a project charter. Once the idea is presented, it must go through several stages of screening. And idea that is very risky and novel would typically go through the following steps:

· Initial brainstorming

· Concept testing

· First feasibility report

· Market survey

· Test marketing or pilot project

· Market research

· Technical analysis

· Sensitivity analysis

Meticulous assessment of the factors affecting a project and determining its economic viability is imperative for any industrial venture. From planning new setups and expansion projects to preparing financial restructuring strategies, and comprehensive techno-economic services include:

· Preliminary Studies,

· Market Studies,

· Site Selection Studies,

· Master Plan Studies,

· Feasibility Reports,

· Project Reports

· Engineering Studies

· Productivity Review

· Energy Audit and Technology Evaluation

· Lenders Engineer’s Report

· Asset Evaluation

· Due Diligence Study

· Environmental Impact Assessment Studies

· Environment Management Plans

· Social Cost-Benefit Studies

· hazard and operability Studies

4. 1.Design and Engineering:

The organization provides clients with engineering expertise throughout the project lifecycle, from feasibility studies and scope documents to design conceptualization, construction management and post-construction evaluations. Its objective is to provide integrated, client-driven consulting engineering and design solutions that help companies attain a competitive edge in the market.

The team of professionals has the best resources and proficiency in delivering fast and accurate results that ensure value addition at every stage of work, contributing to the project’s success.

Engineering studies comprises the following:

Basic Engineering:

This includes preparation of conceptual schemes and system design, sizing and selection of equipment and facilities, preparation of plant layout and assessment of infrastructure requirements.

Detailed Engineering:

This includes architecture, civil engineering, structural steelwork, electric power systems, instrumentation, communication and automation systems, piping systems, environmental control systems, heating, ventilation, air-conditioning systems, drainage and sewerage systems, road and railway systems, scrutiny/ approval of vendors’ designs and drawings.

4. 2. Site management:

Construction Management:

Construction management and monitoring of site activities has been one of the core activities of project management. Construction management includes Monitoring and Co-ordination, Assistance in Procurement service for civil/ structural/ equipment erection work, Co-ordination amongst Client and contractors working at site and Site supervision.

Site supervision services include Progress Surveillance, Quality Surveillance, Work Certification and Billing, Quantity Surveillance, Monitoring and Progress Report, Safety Surveillance, Claim Settlements, “As-Built” Drawings and Co-ordination and Interaction.

Inspection:

The organization must have a large team of qualified, certified and experienced inspection engineers, well-versed in advanced methods of testing which are vital for checking forgings, castings and critical welded structures, storage tanks, pipelines and critical machine components like pumps, compressors, industrial fans and vibro-machinery etc. Besides NDT, there must be a number of inspection engineers specialized in the field of welding technology and conditioning monitoring using vibration analysis.

Operational Assistance:

With the prime objectives of enhancing product quality, raising efficiency of operations; the post commissioning services of technology provider must be in contract for:

· Identifying appropriate practices under actual operating conditions.

· Assistance in improving operating efficiency of modification of operating practices.

5. CHALLENGES IN PROJECT STAGES FOR INDIAN STEEL PLANTS:

Setting a steel plant of 10 MTPA capacities requires around Rs 50,000 crore of investment. Also, every such plant consumes 16 Mt of iron ore and 10 Mt of coking coal annually. The huge funding and raw material requirement, coupled with heavy land, water and power demand, pushes up input costs of large-sized steel plants. The industry was, therefore, demanding captive mines ^(14,15).

5.1 Conceptual Stages:

Hiring of Consultants:

The consultant's primary role is to assist organization with certain areas of inclusiveness work. While the consultant may act as an educator, a catalyst for deeper change, a resource, or a facilitator, the leadership of the process. The Inclusiveness Committee, staff, board members, and executive director have the power, and the greater responsibility, to lead the process of becoming more inclusive. Therefore proper selection of consultant is prime important for effective project completion.

Land Acquisition:

Delays in the government regulatory approvals and challenges in land acquisition have slowed many steel projects. Major investments from leading MNCs and large Indian corporate across Karnataka, Odisha, Jharkhand and West Bengal have been affected due to land acquisition challenges in recent past.

Selection of Process:

Selection of process depends on availability and cost of inputs like quality of raw materials (iron ore, coal/coke) and electricity.

Cost economics of steel making process primarily depends on

(1) Charge material:- 100% Solid or 100% liquid or mixed

(2) Type of process:- LD converter or Electric Arc Furnace/ Induction Furnace

It is known to steel fraternities that all big players greater than 1 million ton per year capacity of steel has gone for integrated plant having BF-BOF-CC/BC-RM. But for the small players in the line of 0.2-0.5 Mt steel making could not choice for BF rout of steel making. It is more economical to procure pig iron/scrap liquidate the same and converting to steel making by EAF where power cost is reasonable. Above organization can afford to operate with following plus points

(a) Less land requirement

(b) Less capital

(d) More turnover

(e) Flexibility in operation

(f) More productivity/ capacity utilization

Earlier, only scrap could be used as a feed material in electric arc furnaces. With growing scarcity of scrap, a replacement could be found in the form of pig iron and DRI produced from iron ore with reformed natural gas/ non-coking coal as reductant.

Setting up of Basic Oxygen Furnaces is capital intensive and successful only at a large scale. However, with the advent of modern electric arc furnaces, steel could be produced in electric arc furnace by use of hot metal or Pig Iron that substantially replaces steel scrap and results in huge savings in electricity consumption.

Considering above, pig iron to steel conversion has seen a new outlook and organization can outer easily to prominence of steel markets with more profit margins.

5.2 Planning Stages:

The planning phase includes defining the project scope, identifying resources, developing a schedule and budget, and identifying risks, all of which make up the baseline plan for doing the project work.

Milestone:

The milestone is an event that represents a point of special significance in the project. Usually it is the completion of a major phase. For example, when training people to write course materials is completed, that is a milestone to be followed by actual writing. A milestone is characterized by deliverables, that is, something you can see or touch e.g. a report or the learner support model of a particular study programme.

Scheduling:

Scheduling is the activity of specifying milestones and assigning target dates to those milestones to ensure that deadlines are adhered to.

Project Team:

The project team is made up of all those who participate in the project, and typically, members are committed to the activity of the majority. A project team is more than a group, because while the group might be involved in a project, group members may not have the required commitment.

5.3 Execution Stages:

Administration is all pervasive through the stages of the project execution stages. Project management needs the support of a strong, proactive and effective administrative system. Administrative structures, policies and process on one side and an effective leadership and strategies plans on the other are critical in making project management a tool for corporate growth and value creation.

In the performing phase, the project plan is executed, and work tasks are carried out to produce all the project deliverables and to accomplish the project objective. During this phase, the project progress is monitored and controlled to assure the work remains on schedule and within budget, the scope is fully completed according to specifications, and all deliverables meet acceptance criteria. Also, any changes need to be documented, approved, and incorporated into an updated baseline plan, if necessary.

Store Facilities:

Project involves lot of procurement of equipment, raw materials, consumables, structural steels, other structures for erection and commissioning of equipments. Once execution stage come during project management, handling with these materials become a critical. So stacking and storing in proper way at proper place is most important. it is generally observed that stacking of these materials in a haphazard way, creates lot of mess and delay project unnecessarily.

Allocation of Fund:

A business needs to finance its projects. Project financing does not mean just getting funds. It means getting an appropriate mix of funds as debt and equity, at the minimum cost, at the right time. Businesses should be aware of the various sources of funds, should strategically design securities for raising funds keeping in mind control requirement, cost of funds, liquidity, flexibility , future growth requirements etc. Right mix of debt and equity and correct design of security, issued in time, may cost less, optimize financing risks, reduce pressure on liquidity during project construction and ensure continued control of current owners or promoters on business, allowing scope for future growth as per plan and ambitions of the business.

Availability of Raw Materials:

The sources of raw materials are limited. Need to secure raw material supply have led Indian steel companies to look at global asset base The raw material security scenario has slightly improved due to regulatory support to overseas acquisitions. The Indian steel companies are actively seeking mining leases and assets globally to secure raw material supplies. The capability to acquire, develop and operate these assets has become a key strategic imperative. These assets provide a natural hedge at the raw material portfolio level, and are also important for overcoming the short-term domestic challenges.

However, there is considerable uncertainty on the actual capacity addition as many projects are yet to achieve financial closure due to delays or lack of regulatory clearances.

Several Indian steel companies have acquired iron ore and coking coal assets in countries such as Canada, Australia and South Africa through joint ventures. One of the leading Indian steel companies acquired a majority stake in a new iron ore reserve in Canada. It had acquired a minority stake in an Australian mine, which was sold last year to a leading global miner. Another Indian steel company has acquired and operates anthracite mines in South Africa. It has also acquired a significant minority stake in an Australian coal miner with exploration rights for coking coal in Queensland.

Work packages:

It is commonly known that breaking down work into manageable pieces (work packages) is a process that depends on the project .A big steel Project cannot be handled by a single person. Work packages contain brief statements of Activity Description, Activity Resources of Skill and Expertise, Activity Estimates of Effort and Duration, Activity Schedule, Activity Risks, and Activity Budget. Work Packages are assigned a Work Authorization or Control Account.

For effective execution and timely completion of project, sub packages or work packages is to be subdivided in such a way that it could not interfere other sub-packages so that parallel work is to be continued till completion. By creating proper work packages the overlapping activities will be minimized and save time.

Manpower Strategy:

Another important point is scarcity of technically qualified manpower. Even today, getting a qualified and experienced metallurgist is not easy. Even the present population of consulting and contracting companies is not enough to take the responsibility of such huge projected expansion. In liberalized economic model, government in general and Steel Ministry in specific does not have a regulatory role but providing industry infrastructure in terms of technical manpower can be a prime task of them.

Health and Safety:

Nothing is more important than the safety and health of the people that work in the steel industry. Mostly in steel project, all of the jobs are carried out at height. So health and safety of workers and employees must be a foremost priority. All injuries and work-related illnesses can and must be prevented. Employee engagement and training is essential.

Communication and Monitoring:

Planning and communication are critical to successful project management. They prevent problems from occurring or minimize their impact on the accomplishment of the project objective when they do occur. Taking the time to develop a well-thought-out plan before the start of the project is critical to the successful accomplishment of any project. A project must have a clear objective of what is to be accomplished and defined in terms of end product or deliverable, schedule, and budget, and agreed upon by the customer. Involve the sponsor or customer as a partner in the successful outcome of the project through active participation during the project. Achieving customer satisfaction requires ongoing communication to keep the customer informed and to determine whether expectations have changed. The key to effective project control is measuring actual progress and comparing it to planned progress on a timely and regular basis and taking any needed corrective action immediately.

Resolution of Commercial Disputes:

One of the cause of delay of project is commercial disputes arises during project execution. Here administrative role is foremost important for early resolution of disputes.

Promotion of Ancillaries units:

Steel plant is basically having heavy and costly equipments. Any damage of equipment required a costly sphere parts. These parts and other engineering services can be made available at low cost by promoting small scale units nearby of the steel plant. Promotion of ancillary units provides good scope for the development of small scale industries.

5.4 Commissioning and Stabilisation Stages:

Commissioning of steel projects is a complex and sophisticated technical specialty, which may be considered as a specific and independent engineering discipline. The main objective of commissioning is to safe and orderly handover of the unit from the constructor to the owner, guaranteeing its operability in terms of performance, reliability, safety and information traceability. Additionally, when executed in a planned and effective way, commissioning normally represents an essential factor for the fulfillment of schedule, costs, and safety and quality requirements of the project. During commissioning and stabilisation period, rectification of commissioning defects is most important for effective operation of the equipment as a whole integration manner.

5.5 Closure and Post Closure Stages:

In the closing phase, project evaluations are conducted, lessons learned are identified and documented to help improve performance on future projects, and project documents are to be organized and archived. Feedback should be obtained from the sponsor or customer and the project team. Learning and understanding the culture and customs of other project participants will demonstrate respect, help build trust, and aid in developing an effective project team and it is critical for successful global project management.

6. CONCLUSION:

A project is an endeavour to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources. It has a clear objective that establishes what is to be accomplished in terms of the end product or deliverable, schedule, and budget.

A successful project also known as capital expenditure- is important for the survival and growth of business and for creating shareholder value. There are many pitfalls in project management, largely because of the management’s unfamiliarity with the project and due to the uncertainty and risk associated with it. As a result, a well-defined process and administration top handle various stages of project management are required.

7. ACKNOWLEDGEMENT:

Authors are grateful to the colleagues of SAIL for the support and sharing their thoughts for the problems and solutions in project management implementation. Authors are highly obliged to the management of RDCIS for their valuable supports extended to them in bringing this paper.

8. REFERENCES:

1. “Indian Steel Industry: An overview and growth prospects in north India”, Indian Steel Industry, CII, 2013

2. Steel Statistics Year Book 2016, world steel Committee on Economic Studies – Brussels, 2016, World steel organisation

3. World Steel In Figures 2016, World steel organisation, Brussels, 2016

4. Annual Report 2015-16, Ministry of Steel, Govt. Of India

5. A C R Das, “Technology road map for Indian steel industry”, International Conference Indian Steel Industry: Challenges and Opportunities, 2012-13

6. A P J Abdul Kalam and Y S Rajan, “ India 2020: A Vision for the new Millennium”, Penguin Books, 1998, Pp: 139-155

7. www.etintelligence.com

8. http://www.jsw.in/steel/projects-under-development

9. http://www.essarsteel.com

10. www.nmdc.co.in

11. http://www.tatasteel.com/global-network/ongoing-projects.asp

12. Jack Gido, James P. Clements, Successful Project Management”, 6^thed. pp: 9-11

13. P Gupta, D Singh, D Mukherjee, B Roy, and V Prasad, “New Challenges in Project Management for Indian Steel Industry”, IE(I) Journal-MM, Vol 89, April 2008, PP 22-34

14. N Rath, “Future of Mega Steel Projects in India”, Steel World, Apr’2012, Pp 44-45

15. Deepak Malkani, Rakesh Surana and Samir Verma, “The “New Normal” in the Indian Steel Industry: Achieving High Performance in a Challenging Environment”, Accenture India, 2013

Received on 06.01.2017 Modified on 02.02.2017

Asian J. Management; 2017; 8(4):1379-1386.

DOI: 10.5958/2321-5763.2017.00210.4

Items	Description	2011-12	2012-13	2013-14	2014-15	2015-16
Finished Steel	Production	75.70	81.68	87.67	90.55	89.32
	Import	6.86	7.93	5.45	9.32	11.21
	Export	4.59	5.37	5.98	5.55	3.81
	GAP	-2.27	-2.56	0.53	-3.77	-7.4
Pig Iron	Production	5.37	6.87	7.95	9.70	9.70
Sponge Iron	Production	19.63	14.33	18.20	20.38	17.90