Project Management Of A Power Generation Plant Construction Essay

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The key objective of this report is to explain how the real world projects are handled and what kind of various difficulties arises and what measures are been taken to overcome this kind of problem. This report also explains the ways a real world project should be analysed and evaluated. The project which I am going to explain in this report is a part of an existing project, an project activity or can be said further extension of the old project. It was undertaken by the JSW steel Limited, India with support from the government of India and the Clean Development Mechanism (CDM). This project will reduce the emission of greenhouse gases by using the co-generation techniques. The aim of this project is to establish a power generation plant by utilising the waste gases produced in the manufacturing of steel. Various project management tools and techniques are been to explain the project, considering myself as the project manager.

To explain how this project was managed, I have used various project management tools and techniques in this report. The various tools and techniques used by me are as follows,

Project selection techniques:

Risk and sensitivity analysis

Net present value ( NPV)

Project execution planning techniques:

Gantt Chart for the Project Schedule Plan

Project Responsibility Matrix

Work Breakdown Structure (WBS)

The main Purpose of this project report to illustrate how the projects are been handled by the project manager. To describe the functionalities of our project I am going to use different approaches.


This project activity was undertaken by Clean Development Mechanism (CDM) and JSW Steel Limited. From 2002 CMD is in operation in India and till date has already approved and supported more than 1500 projects. The main purpose of this organisation is to reduce the Greenhouse gas emissions by issuing projects in developing countries. Reduction in the Greenhouse gas emissions gets them certified emission reduction credits (CER) as reward, and each CER credit is equivalent to one tonne of carbon dioxide, which can be sold in the international market. So it helps to stimulate the trend of emission reduction and also provides industrial countries some opportunity to meet their emission reduction targets. An environmental investment of such kind is done first time in the history of human life.

The project activity is undertaken Steel Limited with the support of Clean Development Mechanism (CDM). This project consists of construction and operation of power plant with the capacity of 100 mega watt. For the generation of electricity the waste gases from the Corex unit and Blast furnace of the steel plant will be used as the fuel with the combustion.

The JSW Steel plant where is new project is to be build is located in Bellary district of state Karnataka in India. The plant is exactly located 8 kilometres away from the city near the national highway. The map of the location site is showed in the Appendix. 1.

Project Title: Report on utilisation of waste gases for the Electricity Generation at JSW Steel Limited.

Background of the Project:

A project is defined as a non-routine, complex, and one time effort limited by budget, resources, time and required performance specifications designed to meet customer needs. (Gray and Larson, 2006)

The purpose of this plant was to generate electricity by utilizing the waste gases produced in the process of steel manufacturing. The capacity of the plant will be of 100 mega watt units of electricity per annum. The waste gases from the Blast furnace and Corex unit will the combustible fuel for this process. The calorific value of the gases produced from the blast furnace is 800 kilocalorie per Newton meter cube. The excess of blast furnace gases after in inbound use for the steel plant will used as the fuel, which is till now been burnt out as per the environmental regulations of India. Till now the electricity was been supplied to the steel plant by JSW electricity which is completely a different organization from JSW steel. By producing electricity by its own the JSW steel will be able to minimize production cost and will be able to become self dependant. As till now the excess of Blast furnaces gases are burnt off and the same will be used for the production of electricity the environmental impact of this activity will be Zero, as there would not be any additional emission of green house gases because of conducting this activity. And this project activity will also contribute to the reduction in the greenhouse gas emissions as there is no fossil fuel used for the production.

The characteristics of the project activity also contribute to sustainable development as follows as per the Government of India for any CDM Project:

Technological Interests:

The power plant utilising the waste gases for the power generation by JSW Limited will be the clean technology demonstration of use of waste gases.

Economic Interests:

Raising funds to sponsor power plant from the waste gases also demonstrates the ways to generate finance using the new financial mechanism.

Environmental Interests:

This project activity provides contribution to good resource conservation and prevents environmental pollution as it uses waste gases from the Blast furnace which or else would have used fossil fuels like coal which causes harmful emission of Greenhouse gases and impacts the global environment.

Social Interests:

It is in the polices of Indian government to promote the utilisation of wastes and this kind of project activity will set a good example in front of other industries.

Stakeholders and their perspectives:

The stakeholders of our project activity and their perspectives are as follows:

The Government of India:

The Indian government favoured the project as it will generate employment opportunities in the local area and also because this project activity is based on the utilisation if waste resources which will contribute to reduction in greenhouse emissions.

The company establishing the plant:

For the JSW steel limited company this Project activity is very important project as it will provide him the good business recognition in the market, establish a good image position, will attract foreign direct investments and also will generate good profit for the company.

The resident population of plant area and plant staff:

To know the views of the resident population of the plant area, the workers of the steel plant and shareholders of JSW steel Limited, a questionnaire based survey was conducted by our project team before starting the project activity as they are majority of stakeholders of this project activity.

The questions rose by the stakeholders and the answers to their concern addressed by my team of project are shown in the appendix 2 (copy G2). Most of the participants in the survey have been in the favour of project as it will control environmental pollution, increase employment opportunities and create and generate new source of income for the local are people and for the company. Considering their suggestions and comments being the project manager of this activity, I have developed a design of production line that will meet all the environmental standards and regulations.

Project Scope:

The project scope acts as the stage on base of which the project plan is developed. It is the aid used by the project managers like me to define the results of the product produced by the pant for the end users. The project goals can be defined with the project scope and project scope is also used as planning to track the project success.

The scope of this project activity is to reduce the environmental impact of greenhouse gases on the environment and to utilise the waste resources to generate some value for the society by generating electricity from waste gases.


To generate electricity with Blast furnace gases and Corex gas, which are the waste gases generated in the process of steel manufacturing rather than use of conventional fossil fuel like coal, and to reduce impact of steel plant on environment.


To built and set a power generation plant which will utilise the excess of Blast furnace gases after satisfying the needs of steel plant and the gases generated from the Corex unit, which will satisfy electricity requirements of JWS steel plant by generating 100 megawatt of electricity every year. Total elimination of Greenhouse gas emissions due to the electricity generated from burning the coal for the power needs of the plant which accounts to be 7,650,520 tons of carbon dioxide in ten years. Get rid of the dependency of the steel plant from the external electricity suppliers.


December 2002: The project of electricity generation is undertaken for feasibility studies

January 2003: Decision for the investment approved

February 2003: As formal beginning of CDM application process, contract been signed with the CDM consultancy

April 2003: Received the approval from the Government of India

May 2003: Loan for the project approved

September 2003: Start of plant construction

March 2004: Trial run of the plant

April 2005: Commercial operation of the plant commenced


Methodology is the simple set of methods or procedures. Definitions of methodology are as follows,

Set of procedures or a particular procedure.

The systematic study of methods which are, have been or can be applied within a discipline.

'The analysis of the principles of methods, rules, and postulates employed by a discipline' (Wikipedia, 2010).

The approved baseline methodology used for this project activity is, 'Power generation by utilising the waste gases and/or heat'.

The fundamental assumption in the approved baseline methodology in the case of the present project activity is that the waste gases from the Corex unit and the Blast furnace will be burnt off in absence of this project activity. I have prepared the descriptions of relevant situations of the planned project and consequent conclusions are mentioned as follows:


The proposed Project Activity

To project activities that manufacture electricity from waste gases from the companies' production units or combustion or waste heat from the processes, the methodology ACM 004 becomes applicable.

Waste gases from the Blast furnace and Corex unit are utilised in our power plant for the generation of electricity.

The methodology applies to the project activity of electricity generation where there is no change of fuel is done in the processes from which waste gases are produced after commencement of the project activity.

There is no fuel change is predicted in the steel manufacturing process from which Blast furnace gases and Corex gases are produced.

Both existing and new facilities are considered in the methodology.

Our project activity is been in commercial operation by 2005 of April and it is an addition to the existing project facility.

The project activities of electricity generation in which project activity displaces captive generation from fossil fuels and/or displaces electricity generation with fossil fuels in the power grid are applicable to this methodology.

Our proposed power unit provides electricity to JSW steel Limited to satisfy its electricity requirements and displaces power generation with fossil fuels like coal. And the proposed power plant is a captive power plant.

Conclusion: The approved methodology ACM0004 / Version 01 is applicable to the proposed project activity.

Technical requirements:

The project activity we have under taken is to produce 100 mega watt of electricity by using excess of Blast furnace gases after satisfying needs of steel plant and the waste gases from the Corex unit. The problem faced in this activity was both the waste gases have the relevantly different characteristics and so the combined firing them is difficult, to overcome this problem my team of project managers developed the first power generator of its kind in the world which can use the combination of Blast furnace gas and Corex gas as fuel or 100 percent of Corex gas. This steam based generator can produce 400 tonn/hr of superheated steam at the pressure of 94 kg/cm2 and at the temperature of 550 degree Celsius. The light fuel oil is been used to start up the burning process.

A single cylindered steam turbine machine rotates the turbo generator at the speed of 3500 rpm producing output of 100 mega watt. There are separate feeders are there are to feed the light fuel oil, Blast furnace gas and Corex unit gas. The flame stability in the boiler is attended by mixing blast furnace gas and Corex gas in varying proportions. While designing this steam boiler the toxic and explosive nature of the gases are taken in account. This boiler is first of its kind which is able to achieve the desired steam temperature with various gases different in calorific value. The 330 KVA of emergency DG automatically supplies the electricity to the important equipments in the case of power failure. The steam coming out of the turbine is cooled with the help of condenser and fed back to the boiler.

Work breakdown Structure:

The project work can be divided and subdivided in to smaller work elements to be performed. The outcome of this process is obtained in the form of hierarchical tree of processes to be undertaken this breakdown of the project work in to smaller elements is called work breakdown structure and it acts as the map of the project. After the WBS is developed it becomes easier to plan and schedule the project and budget each project activity (Gray & Larson 2008). The work breakdown structure of this project activity is shown in the appendix 3. All the major processes of the project are indicated in the WBS. The WBS enables project manager to link and prioritise the project activities and schedule the activities.

Project Scheduling and Constraints:

Project scheduling is the process of sequencing the projects activities mentioned in work breakdown structure. It allows the project manager to understand which activity needs to be performed first. Once the resources are assigned to project activities we can schedule the project. Time and resources are the two major constraints of project schedule. The project time increases and leads to increase in project budget if resources are unavailable on the required time. In the case of shortage of time we can complete the project on time by providing more resources to the activities, but providing more resources also increase the budget. Appendix 4 shows the scheduling for the mentioned project.