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term contracts with iron makers for 70% of our product and to export about 30% to hedge
against or neutralise currency risks, as we will be importing the entire raw material.
However, when we commence production in early 2007, our entire 1.2 million tonne capacity
will meet nearly 100% of the requirements of Tata Steel’s proposed “H”
Blast Furnace. The logistics and quality stipulations are tremendous as we will now have
to supply world class coke to the biggest Blast Furnace in India.
TSN : What have
been the new practices or processes adopted by you?
BKS : In terms of technology, the heat recovery route will make the
plant the only one of its kind in India. We have signed up with Beijing Sino-Steel
Industry & Trade Group Corporation (SSIT) to source technology from Shanxi Provincial
Chemical Design Institute. This Institute is the leader in coke making in China. The
Chinese Government has given them the responsibility for developing technology for coke
making.
Even in project management, Hooghly Met Coke has already established
benchmarks. For instance, Rs. 3 crore per mega watt of installed capacity is the norm for
power plant projects but we have bettered it. Since we are a small team, and have
done away with multiple levels of supervision, while keeping a tight control on costs and
schedules. Even decision making is much faster. In every sphere we have translated the
advantages we possess as a small but empowered group to manage the project better.
Moreover, my experience in procurement helped me select contractors such as BHEL, Thermax
and Shanxi, who we know will deliver.
TSN : In the past one year, what would you consider as being
your most significant achievement? |
TSN : What is the overall business scenario for coke at home and
overseas?
BKS : Internationally, about 15
million tonnes of coke is traded annually. China is the largest exporter, with a small
amount being exported by Japan. China itself consumes 14 to 15 million tonnes, 7 to 8
million tonnes goes to Europe and other countries such as Brazil and Latin America. In
India, the demand is only about 2 million tonnes. In the past three to five years, coke
prices have seen a quantum jump, i.e., from US$ 80 in 2002-03 to US $ 450 in 2005. The
demand from China has been driving up the prices. When it hit US $ 450 a tonne, it was a
wake-up call for steelmakers, especially those who did not have captive coke plants. The input price of coke was at par with the
selling price of steel. Therefore, Coke Oven projects were planned in coke consuming
countries, including India.
The problem with Europe is that coke production there
is very difficult due to their stringent environment standards. We have made coke for over
100 years, and therefore, have the expertise to set up a Coke Plant.
TSN : How did Hooghly Met
Coke come about? |
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BKS : At the time that Tata Steel was planning its
Coke project, the Chairman of West Bengal Industrial Development Corporation, Mr Somnath
Chatterjee called Dr T Mukherjee, Deputy Managing Director, Steel, with the suggestion
that Tata Steel look at a report for a project in West Bengal. Interestingly, it was a
report for a Coke plant in West Bengal by M/s M N Dastur. Among the important deviations
from the report made by the Company was in the choice of technology. Instead of the
traditional coke oven route, Tata Steel chose the heat recovery
route, since today it is the only acceptable way to produce coke in an environment
friendly manner. This process produces two clean products, coke and electricity. A
Memorandum of Understanding has already been signed, as you know, with West Bengal State
Electricity Board for sale of the power produced.
TSN : How will the coke produced be utilised and what
quantum will be exported?
BKS : While engineering for the Coke Plant was taking place the
decision to expand the Steel Works was also taken, including an additional coke capacity
in Jamshedpur. We found that Haldia was a better and more economical option. We had
planned on long- |
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