CHAPTER-1

INTRODUCTION

INTRODUCTION TO THE STUDY

The internship training in Steel Authority of India Ltd. (SAIL) , Bhilai Steel Plant (BSP), Bhilai,
is a part of the academic curriculum of Bangalore University. It is undertaken for a period of 4
weeks to fulfill the course requirement. The internship training is an eye opener regarding the
actual functioning of different departments in an organization. Also inter departmental
relationships and its significance is thoroughly understood during this tenure.

The Internship is a organizational study. It is aimed at seeking information from various

departments, its history, nature of business, vision, mission, policies, procedures, products,
turnover, market share and various financial ratios etc.

The main purpose of the internship it to study the organization from different aspects, different
department, and their functioning in detail. It further provides a wider scope to gain an insight
into the practical aspects of the working of the organization.

The study is to prepare the report on the internship training and submit the detailed and
comprehensive report. This will help the company to assess its strength, weakness to take
necessary action to improve the future growth.

The methodology used for the study is through the collection of primary and secondary data.
Primary data is collected from direct observation and discussion with managers and staff
members. Secondary data is collected through annual reports, business journals and existing
records and also from the website of the company.

OBJECTIVES OF THE STUDY

1) To study the functions of various departments in details.
2) To gain knowledge by practical exposure to the working environment in the organization.
3) To know the various policies and procedures followed in the organization.

4) To analyze the overall performance of the organization.

5) To make a SWOT ANALYSIS of the organization.

SCOPE OF THE STUDY

This study is an attempt to understand the organization as a whole and to study the different
departments in detail so that as a student get a detailed knowledge about the organization. The
study is directed towards the understanding of functions of different departments. The study
focuses on the functioning of different departments.

PLACE WHERE STUDY IS DONE

The internship study has been undertaken at Steel Authority of India Ltd. (SAIL), Bhilai Steel
Plant (BSP). Located at Bhilai, Chhattisgarh 490001, Distt- Durg. Forty kms west of Raipur, the
capital city of Chhattisgarh, along the Howrah-Mumbai railway line and the Great-Eastern
highway, stands Bhilai Steel Plant (BSP).

DURATION OF THE STUDY

The internship study has been extensively carried out for a period of 4 weeks, that is from
13.07.2015 to 08.08.2015.

LIMITATIONS
1) Since it is a very huge organization, time availability to cover the entire organization was
a constraint.
2) Since applying goods to defense, availability of information was also a constraint.
3) Since the organization is to big with too many departments, covering all the departments
in short period was not possible.
4) It is assumed that the information provided by the organization is correct.
5) To Contact with every department head to know about that particular department was
uneasy.

EXECUTIVE SUMMARY

Name : bhilai steel plant BSP Under SAIL

Location: bhilai, Chhattisgarh -490001, distt- Durg
Plant capacity: Annual production capacity of 3.153 MT of saleable steel, the plant also
specializes in other products such as wire rods and merchant products. Since BSP is accredited
with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel
Plant come under the ISO umbrella.
Raw Material: Iron ore, coal, coke, limestone, dolomite etc
Machinery: Indigenous
Products: billet, slag, heavy structure- Joist, beams, ingot, light structures- Angle, channels,
TMT, Bars, pigiron, rails, blooms, slabs, plate, wirerods, scrap, coke.
By products: Road Tar 3, Ammonium sulphate, sulphuric Acid, drained naphthalene oil, still
bottom oil, light creosote oil, Anthraceneoil, crude tar, Pitch creosote mixture, Heavy creosote
oil, pitch, Heavy benzol, light crude benzol, N. G. benzene, N. G. Toulene, H.P. Napthalene,
solvent oil, xylene.

Chapter 2
INDUSTRIAL PROFILE

INTRODUCTION TO INDIAN STEEL INDUSTRY

An overview of steel industry
Global Scenario

In 2014, the world crude steel production reached 1665 million tonnes (mt) and showed a
growth of 1% over 2013.

China remained the worlds largest crude steel producer in 2014 (823 mt) followed by
Japan (110.7 mt), the USA (88.2 mt) and India (86.5 mt) at the 4 th position.

WSA has projected Indian steel demand to grow by 6.2% in 2015 and by 7.3% in 2016 as
compared to global steel use growth of 0.5% and 1.4% respectively. Chinese steel use is
projected to decline in both these years by 0.5%.

Per capita finished steel consumption in 2014 is estimated at 217 kg for world and 510 kg
for China by WSA.
Domestic Scenario

The Indian steel industry has entered into a new development stage from 2007-08, riding
high on the resurgent economy and rising demand for steel.

Rapid rise in production has resulted in India becoming the 3 rd largest producer of crude
steel in 2015 and the country continues to be the largest producer of sponge iron or DRI in the
world.

As per the report of the Working Group on Steel for the 12 th Five Year Plan, there exist
many factors which carry the potential of raising the per capita steel consumption in the
country. These include among others, an estimated infrastructure investment of nearly a
trillion dollars, a projected growth of manufacturing from current 8% to 11-12%, increase in
urban population to 600 million by 2030 from the current level of 400 million, emergence of
the rural market for steel currently consuming around 10 kg per annum buoyed by projects
like Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Rajiv Gandhi Awaas Yojana among
others.

At the time of its release, the National Steel Policy 2005 had envisaged steel production
to reach 110 million tonnes (mt) by 2019-20. However, based on the assessment of the current
ongoing projects, both in greenfield and brownfield, the Working Group on Steel for the 12 th
Five Year Plan has projected that domestic crude steel capacity in the county is likely to be

140 mt by 2016-17 and has the potential to reach 149 mt if all requirements are adequately
met.

The National Steel Policy 2005 is currently being reviewed keeping in mind the rapid
developments in the domestic steel industry (both on the supply and demand sides) as well as
the stable growth of the Indian economy since the release of the Policy in 2005.

Production

Steel industry was de-licensed and de-controlled in 1991 & 1992 respectively.

Today, India is the 3 rd largest producer of crude steel in the world.

In 2014-15, production for sale of total finished steel (alloy + non alloy) was 91.46 mt, a
growth of 4.3% over 2013-14.

Production for sale of Pig Iron in 2014-15 was 9.7 mt, a growth of 22% over 2013-14.

India is the largest producer of sponge iron in the world with the coal based route
accounting for 90% of total sponge iron production in the country.

Data on production for sale of pig iron, sponge iron and total finished steel (alloy + nonalloy) are given below for last five years:
Indian steel industry : Production for Sale (in million tonnes)

Category

2010-11 2011-12 2012-13 2013-14 2014-15

Pig Iron

5.68

5.371

6.870

7.950

9.694

Sponge Iron

25.08

19.63

14.33

18.20

20.38

Total Finished Steel (alloy + non alloy)

68.62

75.70

81.68

87.67

91.46

Source: Joint Plant Committee

Demand - Availability Projection

Demand availability of iron and steel in the country is projected by Ministry of Steel in
its Five Yearly Plan documents.
Gaps in availability are met mostly through imports.
Interface with consumers by way of a Steel Consumers Council exists, which is
conducted on regular basis.
Interface helps in redressing availability problems, complaints related to quality.

Steel Prices

Price regulation of iron & steel was abolished on 16.1.1992. Since then steel prices are
determined by the interplay of market forces.

Domestic steel prices are influenced by trends in raw material prices, demand supply
conditions in the market, international price trends among others.

An Inter-Ministerial Group (IMG) is functioning in the Ministry of Steel, under the

Chairmanship of Secretary (Steel) to monitor and coordinate major steel investments in the
country.

As a facilitator, the Government monitors the steel market conditions and adopts fiscal
and other policy measures based on its assessment. Currently, basic excise duty for steel is set
at 12.5% and there is no export duty on steel items. The government has also imposed export
duty of 30% on all forms of iron ore except low grades which carry a duty of 10% while iron
ore pellets have a export duty of 5% in order to control ad-hoc exports of the items and
conserve them for long term requirement of the domestic steel industry. It has also raised
import duty on most steel imports by 2.5%, taking the import duty on carbon steel flat
products to 10% and that on long products to 7.5%.

For ensuring quality of steel several items have been brought under a quality control
order issued by the Government.

Further, a Steel Price Monitoring Committee has been constituted by the Government
with the aim to monitor price rationalization, analyze price fluctuations and advise all
concerned regarding any irrational price behaviour of steel commodity.

Imports

Iron & steel are freely importable as per the extant policy.
Data on import of total finished steel (alloy + non alloy) is given below for last five
years:
Indian steel industry : Imports (in million tonnes)

Category

2010-11 2011-12 2012-13 2013-14 2014-15

Total Finished Steel (alloy + non alloy)

6.66

6.86

7.93

5.45

9.32

Source: Joint Plant Committee

Exports

Iron & steel are freely exportable.

Data on export of total finished steel (alloy + non alloy) is given below for last five years:
Indian steel industry : Exports (in million tonnes)

Category

Total Finished Steel (alloy + non alloy)

2010-11 2011-12 2012-13 2013-14 2014-15

3.64

4.59

5.37

5.98

5.59

Source: Joint Plant Committee

Levies on Iron & Steel

SDF levy

This was a levy started for funding modernisation, expansion and development of steel
sector. The Fund, inter-alia, supports :

Capital expenditure for modernisation, rehabilitation, diversification,

renewal & replacement of Integrated Steel Plants.

Research & Development

Rebates to SSI Corporations

Expenditure on ERU of JPC

The SDF levy was abolished on 21.4.94

Cabinet decided that corpus could be recycled for loans to Main Producers

Interest on loans to Main Producers is set aside for promotion of R&D on steel etc.

An Empowered Committee has been set up to guide the R&D effort in this sector.

EGEAF Was a levy started for reimbursing the price differential cost of inputs used for
engineering exporters. Fund was discontinued on 19.2.96.

Opportunities for growth of Iron and Steel in Private Sector

The New Industrial Policy Regime
The New Industrial policy opened up the Indian iron and steel industry for
private investment by (a) removing it from the list of industries reserved for public sector and
(b) exempting it from compulsory licensing. Imports of foreign technology as well as foreign
direct investment are now freely permitted up to certain limits under an automatic route. Ministry
of Steel plays the role of a facilitator, providing broad directions and assistance to new and
existing steel plants, in the liberalized scenario.
The Growth Profile

(i) Steel : The liberalization of industrial policy and other initiatives taken by the Government
have given a definite impetus for entry, participation and growth of the private sector in the steel
industry. While the existing units are being modernized/expanded, a large number of new steel
plants have also come up in different parts of the country based on modern, cost effective, state
of-the-art technologies. In the last few years, the rapid and stable growth of the demand side has
also prompted domestic entrepreneurs to set up fresh greenfield projects in different states of the
country.
Crude steel capacity was 109.85 mt in 2014-15 and India, which emerged as the 3 rd largest
producer of crude steel in the world in 2015 as per ranking released by the WSA, has to its credit,
the capability to produce a variety of grades and that too, of international quality standards. The
country is expected to become the 2 nd largest producer of crude steel in the world soon,
provided all requirements for creation of fresh capacity are adequately met.
(ii) Pig Iron: India is also an important producer of pig iron. Post-liberalization, with setting up
several units in the private sector, not only imports have drastically reduced but also India has
turned out to be a net exporter of pig iron. The private sector accounted for 91% of total
production for sale of pig iron in the country in 2014-15. The production for sale of pig iron has
increased from 1.6 mt in 1991-92 to 9.7 mt in 2014-15.
(iii) Sponge Iron: India is the worlds largest producer of sponge iron with a host of coal based
units, located in the mineral-rich states of the country. Over the years, the coal based route has
emerged as a key contributor and accounted for 90% of total sponge iron production in the
country. Capacity in sponge iron making too has increased over the years and stood at 46.23 mt
in 2014-15.

Chapter-3
Company profile

A B OU T BHI LA I S TEEL PLA N T

Eleven - times winner of Prime Minister's Trophy for best Integrated Steel Plant in the country,
Bhilai Steel Plant (BSP) is India's sole producer of rails and heavy steel plates and major
producer of structural. The plant is the sole supplier of the country's longest rail tracks of 260
metres. With an annual production capacity of 3.153 MT of saleable steel, the plant also
specializes in other products such as wire rods and merchant products. Since BSP is accredited
with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel
Plant come under the ISO umbrella.
At Bhilai IS0:14001 has been awarded for Environment
Management System in the Plant, Township and Dalli
Mines. It is the only steel plant to get certification in all
these areas. The Plant is accredited with SA: 8000
certification for social accountability and the OHSAS-18001
certification for Occupational health and safety. These
internationally recognised certifications add value to Bhilai's
products and helps create a place among the best
organisations in the steel industry. Among the long list of
national awards it has won, Bhilai has bagged the CII-ITC
Sustainability award for three consecutive years.

Product Mix: Saleable Steel Production:

Product-mix
Semis
Rail and Heavy structural
Merchant products
(Angles, channels, rounds and
TMT bars)
Wire rods (TMT, Plains and
ribbed)
Plates ( upto 3600 mm wide)
Total saleable steel

TONNES/ANNUMS
533000
750000
500000

420000
950000
3153000

India 2020 A vision for the new Millennium

We still have a number of persons in our country in Steel authority of India Limited (SAIL)
They have the will to excel and transform the country, given a long term vision.
Dr. A.P.J. Abdul Kalam

BSPs ORGANISATIONAL OBJECTIVES:

To encage customer satisfaction through: Improvement in productivity and product quality.
Skill enhancement of our people by competence commitment and culture-building.
Production as per customer requirements.

QUALITY POLICY:
Attending market leadership through enhancing customer satisfaction.
Achieving continual improvement in productivity, quality and salability of our products.
Active involvement of all our people in achieving our goals, objectives and target.
PRODUCT PROFILE:
Bhilai Steel Plant (BSP) has mainly three types of products:1.
2.
3.

Semis Product
Long Products
Flat Products
BSP is one of the major producers of long steel products in India. The current product mix of
BSP comprises Plates, Rails, Heavy Structurals, beams, channels, merchant products, bars, rods
and light structurals, wire rods and semis, like blooms and billets. Presently, the long products
constitute about 74% and flat products about 26% of the saleable steel produced at BSP.

PRODUCT MIX OF BSP:

Rail & Structural Mill

(Capacity - 7,50,000 T )

Products
Rails - R52 Kg/m & R60 Kg/m ; UTS 880 N/mm2 rails as per IRST-12/96
specifications , Euronorms and international standards.
Thick web asymmetric rail Zu 1-60
Beams - 600,500,450,400,350,300 & 250.
Channels - 400,300 & 250.
Angles - 200 & 150.
Crossing Sleeper.
Crane Rails - KP80, 100,120 & 140.
Bhilai is the sole supplier of the country's longest rail tracks of 260 metres.
Bhilai Rails
Largest producer and leading rail maker of the world.

Four and a half decades of experience in rail making.

 Produced over 15 million tonnes of rails; 2.7 lakh km in length.

Indian Railways- Worlds second largest rail company moves exclusively on Bhilai rails.
Bhilai rails are subjected to worlds highest traffic density and axle loads.
Rails exported to 10 countries with exports to South Korea, New Zealand, Argentina,
Turkey, Iran, Egypt, Ghana, Bangladesh and Malaysia.

Technological Superiority
Steel from LD Converter Ladle furnace - RH Degasser Comcast route; achieving
world best level of degassing/refining to less than 1.5 ppm of hydrogen in liquid steel in
100% of heats.
Capability to produce as rolled lengths of 80 meter and welded panels up to 260 meters
High degree of Straightness due to worlds most advanced and Laser straightness
measurement based end straightening machine.
World class tested rails passing through state of art online NDT equipment; Laser
straightness measurement, Ultrasonic and eddy current testing machines
Computer controlled automatic rail handling system and automatic yard mapping for rail
storage.
Computerized Rail Tracking system for collection and storage of all process and testing
related data of each rail.

Merchant Mill (Capacity - 5,00,000 Tonnes)

Products

Plain Rounds : dia 28, 32, 36,40, 50,53, 56, 63 & 67

TMT Bars : 25,28, 32, 36, 40 & 45
Lt. Structurals :Channel 100 x 50, 75 x 40
Angles : 50 x 50 x 5 upwards to 90 x 90 x 10

Wire Rod Mill (Capacity - 4,20,000 T)

Products
Wire Rods (Plain, Electrode Quality & TMT) in 5.5, 6, 7, 8 & 10 mm plain and ribbed,
and 12 mm plain in coil form
8, 10, and 12 mm TMT

Plate Mill (Capacity 9, 50, 000 T)

(Plate thickness: 8-120mm, Width: 1500-3270mm, Length: 5-12.5 M)
The modern Plate Mill rolls out heavy and medium plates, as well as those for pipe
manufacturers. Plates of wide variety, in any required size, and strength, chemical and physical
properties, can be produced here. It has capacity to produce high pressure, boiler quality and high
tensile steels. Shipbuilding plates, conforming to Lloyds specifications, and pressure vessel
boiler plates, conforming to various ASTM, ASME standards, have withstood the challenges of
nature and time. Some of the unique features of the mill are on-line finishing facilities and offline normalizing facilities. Bhilai has the widest plate mill in the country, and it uses
continuously cast slabs as input. Liquid steel produced under controlled conditions in the LD
Converters is rinsed with argon gas to homogenize the composition as well as to remove nonmetallic inclusions before continuous casting so as to ensure the production of high quality
feedstock for the Plate Mill. As per customers' requirement or specifications, plates are
normalized in a roller hearth normalizing furnace.

NEW PRODUCTS:
To meet the customers requirements, increase the market share and widen the product
range, several new products have been developed.
BS-1501-224 Grade 490A for mounded pressure vessels.
API 5L X-52/X-65 Plates for Line Pipe Applications.
High Tensile Plates BSEN-100025, S-355 K2G3 and BS4360 50 DD Specifications for
export with sub-zero impact toughness, thicker plates in boiler quality grade.
SAILMA 300 HI plates in 75 & 80 mm thickness were developed for DLW, Varanasi, for
application in locomotive base plate.

 DMR-249 A (ABA grade) plates with stringent toughness requirement at sub-zero

temperature was developed for Defense Research Lab, Hyderabad.
Corrosion resistant Molybdenum rail (52 kg) was developed and supplied to Railways.
Commercial production of Cu-Ni-Cr Plates for corrosion resistant (with corrosion
resistance index of 6 Min.) applications has been successfully done for customers like
BHEL & TISCO.
Commercial production of 25 mm TMT- Fe 415 and TMT- HCR 500 bars at Merchant
Mill. 950 mm High Tensile impact tested IS 8500 Fe 540 B Plates were successfully
rolled and supplied for the first time.
63 mm High Tensile Plates of DIN 17100 St 52.3 were successfully rolled and supplied
for the first time.
API X-60 plates were developed in up to 3270 mm width in thickness range of 14-22 mm
for pipeline segment.
SAILMA 300 HI plates in 75 & 80 mm thickness were developed for DLW, Varanasi for
application in locomotive base plate.
A new segment - Windmill Tower was identified in Non-conventional Energy sector and
supplies to the tune of 2500 T/month are being made to customers like L&T, ECC &
ATMASTCO.
Narrow width slabs in 180 mm thickness, in 205x290 size in SWR 14 grade with specific
chemistry, and Hy blooms in 205x 265 size and 205x325 size in SWR 14 grade were
developed at BBM for cycle manufacturers.
Besides, successful trial production of wire rods of EN-8 grade high carbon steel, and
Weather Resistant Cu-P Plates for corrosion resistant applications has been done.
Lower tonnage orders of non-standard size plates with lower slab weight are also being. Plates
from Bhilai have been exported to Europe, America, Middle East, and South East Asia from
1986.
EXPANSION AND MODERNISATION:
As an integral part of SAILs growth plam that envisages capacity augmentation to around 23
MT crude steel by the year 2012, projects worth Rs. 17,265 crore are being executed for Bhilais
expansion and modernization, after which Bhilais capacity would be to enhanced to 7.5 MT of
hot metal and 7 MT of crude steel.
The major units under the modernization and expansin plan are:-

New 7m tall coke oven battery-11

Additional 360 metre square sinter Machine in existing sinter plant-III and
augmentation of sinter plant-II.
New Blast Furnace-8 (4060m cube) of 8000 TPD capacity.
Augmentation of existing steel Melting shop-II.
New Steel Melting Shop-III of 4 MTPA capacity complete with all secondary refining
and casting facilities

MANAGING DIRECTOR

GM(F&A)

ED (PROJECTS)

ED (WORKS)

Organization
structure of BSP
GM (IT)
GM (PROJECTS)

GM (M&SP)

ED (P&A)

GM (TS)

GM (PERS)
GM (PP&E & BEDB)
GM (HRD)

GM (IA)

GM I/C (SERVICES)
GM (SAFETY)

GM (MS)

GM I/C (MINES)
GM I/C (M&U) (REFR)
DIR (M&HS)

ACVO

COC

GM (P MILL & MILLS-LP)

GM(CO,CCD & SP,OHP)
GM I/C (PE,EN & STEEL)
GM (QUALITY)
GM (CCS)- SMS-II

DGM (L & A)

ED (MM)

GM (MM)

CHAPTER-4
FUNCTIONAL
DEPARTMENTAL

1.MARKETING DEPARTMENT
CENTRAL MARKETING ORGANIZATION(CMO)
The ISO: 9001:2000 certified Central Marketing Organization (CMO) is Indias largest industrial
marketing set-up that markets carbon steel Produced by the four integrated steel plants of SAIL.
Headquartered in Kolkata, it transacts business through its network of 34 Branch Sales Offices spread
across the four regions, 25 warehouses equipped with mechanized handling systems, 11 Customer
Contact Offices and 16 Consignment Agents. CMOs domestic marketing effort is supplemented by its
ever-widening network of authorized and rural dealers who meet the demands of the smallest customers
in the remotest corners of the country. A strong IT support system enables real-time network connectivity
within the entire CMO network. Extensive customer contact, product and segment specialization, close
monitoring of order servicing and feedback analysis through the Customer Satisfaction Index are
established norms at CMO. The customer-friendly approach of CMO is backed by practical after- sales
services. Through the process of Key Account Management, CMO provides single window service to key
customer across the country for every business transaction from enquiry to order booking, order tracking
to delivery, and even consultancy and after-sales services.
Central marketing organization is the marketing unit of SAIL. The Central Marketing Organization
(CMO) of SAIL was formed in 1963 when the public sector steel plants were managed by Hindustan
Steel Private Limited. It caters to the domestic market and is responsible for marketing of all the products
manufactured by all the steel plants of SAIL in a coordinated manner. The CMO undertakes marketing of
materials produced by SAILs plant through a distribution network of 43 Branch Sales Offices (BSO),

stockyards, dockyards, consignment agents and extension counters spread all over the country. Central
Marketing Organization (CMO) and most of its divisions have their Headquarters at Kolkata and they
reports to the Director headquartered at Delhi. However, departments like transport and shipping, export
and etc. report to exchange to Executive Director located at Delhi.

Marketing Strategy
a)

Ensuring dominant position in the Indian steel market

b)

Maintaining continuous global presence (around 10 % by sales value)

c)

Building & enhancing Brand Value of SAIL products

d)

Further thrust on Key Account Management process

e)

Gradual shift towards more of customers sales, as against traders sales

f)

Trading of steel by sourcing from international sources, to enable packaging for key customers

g)

Popularizing SAIL products in the rural market

h)

Maximizing IT enabled customers service and interactions

Major Function
Market research, Demand Assessment, segment prioritization, product planning, sales and after sales
services etc. CMO has a network of sales offices and stockyards within the country for purpose of
distribution of materials outlets. The other aspects controlled by CMO are planning, customer services,

transport and shipping data information system etc.The distribution of iron & Steel products is done by
the CMO through 45 branches and stockyards located in all important steel consuming centers in the
country. For administration purposes, the branches are grouped under 6 regions. The distribution through
the stockyard is of the order of 69% and through direct dispatches by the plant 31%. They operate various
schemes of the products is fast and the customer are satisfied.

Other important functions of (CMO)

CMO has got responsibility to sell Pig Iron & Prime Steel Products manufactured by BSP, DSP, RSP &
having its headquarters at Ispat Bhavan, 40, Chowringhee Road, Kolkata-71.
CMO has got 43 branches spread throughout the country with stockyard, for storing and selling of iron
and steel materials produced by the plants.
Each branch is headed by a Branch Manager having other colleagues including Finance executives to help
Branch Manager in day to day operation.
The entire network branches are divided into four regions as given below:

Eastern Region

Western Region

Southern Region

Northern Region

CMO has got transport and shopping determinants to handle the export and import consignments at
different ports. These offices are at following places.

Calcutta

Chennai

Paradip

Haldia

Visakhapatanam

To coordinate about production and dispatches in different steel plants, CMO has got SRM offices at
following places :

Bhilai

Durgapur

Roukela

To take care of the exports, CMO has got office at New Delhi, there is separate fertilizers and chemical
division to sell fertilizers and chemicals produced by the plants.
There are three executives called as product executives for BSP they take care of separate division in BSP
the main divisions being:

Plate Mill

Heavy Structure

Structures

The movement plans are generated by BSO only. The main purpose of the movement plan is to give the
commercial as well as the quality information of any particular transaction. This information is then sent
to the M & SP department of BSP.

Various Divisions Of CMO

The following are the major divisions of the Central Marketing Organization:

Central Planning & Products Division: The main function of the division is to bring about coordination
between the market demand and production of the steel plants. The four Resident Sales Mangers of the
CMO located in four tonnage plants report to this divisions in respect of matters relating to marketing viz.
movement, dispatches etc.

Alloy Steel Divisions: This division looks after marketing of alloy and special steel products
manufactured by alloy Steel Plant, Durgapur and also coordinates sales efforts with Visvesvaraya Iron &
Steel Co. Ltd (VISL), SSP and MEL.

Pipes, Electrical Steel Sheets & Tin Plates Division: Headquarters of this set up is located at Mumbai
where majority of the customers for these materials are situated. These materials have to be marketed
under highly competitive conditions. This division works out marketing strategies such as pricing,
distribution system, storage and delivery facilities etc. This division has a field set up at each of the
regional headquarters.

Market Management Group: This group is headed by group market manager. This group cosistes of
market managers. Market managers are responsible for market strategy & planning in terms of sales,
market share & profitability in a specific market segment.

Salem Steel Products Divisions: This division headquartered at Chennai by Salem Steel plant. They
have field office at each of the regional headquarters as well as major consumption center.

Marketing Services Divisions(MSD): This division looks after the management of this divisions is
supported by a computer center where data on marketing operations throughout the country are processed
on a regular basis to bring out periodical MIS reports. The responsibility of designing & implementing
road movement, handling contract systems etc. is also with them.

Commercial Division: This division deals with formulation of polices on distribution. This division also
deals with parliament question on behalf of Central Marketing Organization.

Application Engineering Group: This division deals with application about selection of best suited raw
materials, development of new products required by the market etc. It also undertakes technical
inspection on behalf of the CMO wherever needed. The A.E. personal are posed at each regional
headquarters.

Fertilizers and Chemicals Divisions: This division is headquartered at Kolkata and looks after
distribution of Ammonium Nitrate products by Roukela Steel Plant and Ammonium sulphate produced by
all the steel plants. This division has got offices at field location where the demand for fertilizers is
substantial.

Market Research Group: This division undertakes assessment of demand for Pig Iron & steel products
for long term perspective & advice management about the market. This division brings out periodic
reports covering various aspects of consumption, market condition, competitors activates etc. They have
field representatives for collecting & forwarding market intelligence to the headquarters.

Transport & Shipping Department: The department is headquartered at Kolkata and has branch offices
at major port areas. This division is responsible for handling imports & exports on behalf of SAIL. These
divisions clear the coals imported of SAIL, at the ports and forward the same to various steel plants.

Finance & Accounts Department: This department renders financial advice to the line managers as well
as CMO headquarters and maintains the accounts of the Organization covering Home sales, Transport and
shipping exports, internal audit, etc.

Computerization Division: This division is headquartered at Delhi and reports to General Manager, This
division is in change of the on going project for total Computerization of CMO at headquarters field
offices and SRM in the plant location. At present this division is responsible for hardware and software
maintenance also. Software Development Center at Hyderabad is engaged in developing and updating
software required for CMO marketing.

Legal Cell: This cell deals with all legal matters of CMO like court cases, arbitration, examination of
different documents for giving loans to employees for house building & renders legal advice on various
transactions. This is headed by GM (Law) who reports to Director (commercial)

International Trade: This department is headquartered at Delhi is Commercial Directorate and is in

charge of the export and import operations of SAIL.

Special Project Division: This division is headquartered at Delhi and reports to Director (commercials).
This division deals with modernization of stockyards giving technical help and assistance to the stockyard
in maintenance of handling equipment etc. This department also deals with construction of office building
of CMO and acquisition / construction of residential accommodation etc.

BRANCH SALES OFFICE(BSO)

It is a part of CMO various BSO offices are located all over India which performs the job of marketing of
SAIL products throughout the India. It receives the order from various customers, does market research,
analyze competitive position, demand pattern etc.

SALES RESIDENT MANAGER(SRM)

BSO cannot directly contact with the plant for various dispatches & order, So SRM is basically a
coordinator between BSO and plan, each plant has their SRM offices located near the plant premises for
access of the orders.

Pricing Done By BSP

The prices for all products at BSP are done by the government of India. These prices are fixed and are
quite economical for the customers as it is quite low as compared to the competitors.

Selling Methods
There are two methods for BSP:
1. Tender Pricing
2. E-auction

Types Of Customers
There are two types of customers:

End user customers: These customers basically use products in factory, plants for power projects of
other purposes like fabrication.

Traders: These customers buy products from us and again sell them to the end users.

International Trade Division (ITD)

CMOs International Trade Division (ITD): In New Delhi manages exports of iron & steel products of
Sails four main integrated steel plants and maintains close liaison with buyers abroad. ITD has
successfully established SAILs reputations as a producer of quality steel products and a consistent
supplier across the five continents. Among the notable destinations are China, Korea, UAE, Europe (UK,
Italy, Spain & Germany), Taiwan, Japan, Thailand and Singapore as well as neighboring countries like Sri
Lanka, Myanmar, Nepal and Bangladesh, etc. The critical function of ensuring efficient and proper
dispatch of export materials and timely import of raw materials to maintain the pace of production of the

SAIL plants is performed by CMOs Transport & Shipping Division (T & S) headquartered at Kolkata,
T&S has branch offices at Haldia, Paradip and Vizag ports.

Products
Bhilai offers a rich and varied product mix to the domestic and international markets by different ways.
The are divided into two categories, which is:
Prime Product
Secondary Product

Prime Product

Billets/ square (MM) : 50,60,80,85,100,120,150,280,320

Rails (KG/Mtr)

Crane rails (kp)

Angle (MM)

: 45,52,60
80,100,120

50x50x5/6,65x65x5/6,8/10,75x75x6/8/10,80x0x6/8/10, 90x90x6/8/10,50x150x16/20,
200x200x16/20
Secondary Product

Coke fraction

Slab

Cast Iron Scrap

Steel Scrap

1. MARKETING AND STRATEGIC PLANNING DEPARTMENT OF

BHILAI STEEL PLANT
Marketing department of Bhilai Steel Plant is known as Marketing and Strategic Planning department.
The main function of this department includes marketing of prime products, secondary products, coal
chemicals, market development and strategic planning. Marketing of these products is carried out by the
different sections of marketing department. The different sections of M & SP department are:

Market Department and Strategic Planning (M & SP)

Secondary Products

Coal Chemicals

Billet and Bloom mill (BBM)

Merchant Mill (MM)/Wire Rod Mill (WRM)/ Rail and Structural Mill (RSM).

Exports

Plate Mill

Marketing and Strategic Planning section of BSP are segmented into two main parts, namely

Primary Product Zone

Secondary Product Zone.

These two zones are divided into different sub zones. Primary Product Zone is divided into
a) 2.5 Million Tonne (long products- rail and structural, wire rods, TMT bars, channels,angles, rolled
blooms and billets of different sizes and specifications, Pig Iron )
b) 4.0 Million Tonne (flat products- Plates of different Sizes and specifications, continuously casted Slabs
and Blooms in SMS-II)
c) Exports of primary products.

Secondary product zone is sub divided into different sections

a) Coal Chemicals (Benzene, Naphthalene, Coal Tar, Ammonium Sulphate etc.)

b) Miscellaneous Section: This section is sub divided into i) Secondary steel products (cast iron, steel,
mild steel secondary etc.) and ii) Secondary non-steel products (Blast Furnace slag, BF flue dust, lime
sludge, different refractory waste, cinder from soaking pits etc.).

Illustration 3.1: Flow-chart showing structure of M&SP department

1.1.

Role of Marketing Department

The following flow charts depict the role of marketing department in the dispatch of the material.

1.1.1.

Road Transfer

SRM office issues Movement Plan (MP) along with

Delivery Order (DO) of the required quantity, quality
and destination of the required products to M & SP
department, BSP
Marketing, BSP checks all the documents (on line)
through ERP system and gives clearance to respective
mills for release of materials to the party.

Respective mills' shipping department loads vehicles

as per the MP which is cleared by M & SP department.

M & SP department has to ensure loading of materials

as per MP/DO. In case of any shortfall of any document,
M & SP department has to facilitate accordingly.

Illustration 3.2: Flow-chart showing procedure for road transfer

1.1.2.

Rail transfer

SRM office issues the Movement Plan (MP) of the

required quantity, quality and destination of the
required products to M & SP department, BSP.

M & SP department, BSP checks all the documents (on

line) through ERP system and gives clearance to
respective mills for release of materials to the party.

Respective mills' shipping department loads rakes as

per the MP which is cleared by M & SP department.

M & SP department has to ensure loading of materials

as per MP/DO. In case of any shortfall of any
document. M & SP has to facilitate accordingly.

Illustration 3.3: Flow-chart showing procedure for rail transfer

1.1.3.

Inter-plant transfer

In case of Inter Plant transfer order is routed through

CMO. CMO generates MP as per the required quality,
quantity and destination of the products.

M & SP department, BSP checks all the documents (on

line) through ERP system and gives clearance to
respective mills for release of materials to the receiver.

Respective mills shipping department loads

Rakes/vehicles as per the MP which is cleared by Mktg.
& SP.

M & SP department has to ensure loading of materials

as per MP/DO, in case of any shortfall of any document
M & SP department has to facilitate accordingly.

Illustration 3.4: Flow-chart showing procedure for inter-plant transfer

1.1.4.

Exports

In case of export order ITD section sends the enquiry

of customer to M & SP, BSP. Its now the responsibility
of the M & SP to ensure the availability of the asked
quality, quantity of the Merchant products to
Customer.
M & SP department holds a meeting with HOD, RCL,
respective mills and PPC to ensure the feasibility of
customer demand and the same is conveyed to ITD
and local SRM section. If any modification w.r.t. quality
and quantity is required this is also conveyed to ITD.
CMO issues Movement Plan (MP) after getting the
confirm order from customer (if customer is ready to
accept the modification) and same is conveyed to M &
SP and respective mills.
M & SP department has to ensure loading of materials
as per MP/DO, in case of any shortfall of any document.
M & SP department has to facilitate accordingly.

Illustration 3.5: Flow-chart showing procedure for exports

1.2. Secondary Product Zone

2.FINANCE AND ACCOUNTS DEPARTMENT

An Overview:
For any organization, the Finance & Accounts function plays a key role in guiding the organization to
meet its ultimate goals and objectives. While Finance function embarks upon regulating the inflow
and outflow of funds, the Accounts function basically supports the finance function by way of
analyzing the transaction in a most befitting manner. Finance & Accounts function is like a mirror
through which one can peep into the health of an organization.

Finance & Accounts Department of BSP has to execute several activities. The Department has been
divided into several sections based on organizational needs and functional expertise required by
grouping activities of similar nature as a section. The objective of Department is always to meet the
requirements of Line Departments, customers, suppliers, stakeholders and Government Departments
while discharging its own functions such as accounting, budgetary control, rendering advice on
financial matters and meeting the statutory requirements. To back up all above functions, the
Department has a vast and dedicated team of professional accountants and experts.

The entire department is represented by the following sections

Cash & Bank

Central Accounts & Assets Accounts
Central Excise & Service Tax
Contract Concurrence
Contributory Provident Fund (CPF)
Cost Accounting & Energy Cell
Final Claim Cell (FCC)
Finance Co-ordination & Administration
Freight & Claims
Import Accounts
Incentive Cell
Management Accounting
Medical Accounts
Mines-Rajhara, Nandini, Hirri
Operation Accounts
Operation Budget

Project Finance & Accounts

Purchase Concurrence
Raw Material Accounts
Rent Cell
Sales Accounting
Sales Invoicing and Central Freight
Sales Tax & Entry Tax
Stock Ledger (Stock valuation)
Stock Verification
Store Accounts
Store Bill Accounting
Store Bills
Township Accounts
Wages

Finance also discharges special functions such as taxation like Central Excise, Sales Tax, VAT, CST, Entry
Tax, and Terminal Tax.

Bhilai steel plant has implemented SAP in 2009-10 under the ERP system, by which the functions of
Finance are linked online to various technical functionality and processes. Which has lead to availability
of online information and database for various finance work, analysis, etc. This has lead to a sea change
in the working and environment of Finance Department.
3.PRODUCTION DEPARTMENT

Products

Shop
Rail

Products
& Rails

Structural
Mill

Annual

Product

Width

Capacity

Dimension range

range

Length

(Tonnes)

(mm)/ Profile

(mm)

(metre)

750000

45Kg, 52Kg & 60 Kg

13,

End use / consumers

26, Indian Railways, Export

Rails

65, 130 &

Heavy

Beam

260

Structurals

600x210,500x180

Infrastructure Projects

450x150,
400,350,300x140
250x125
Channel
Crane Rails

400x100,

Crossing

250x82

sleepers

Angle

300x90

150x150, 200x200

Cranes
Broad gauge sleepers

Shop

Products

Annual

Product

Width

Capacity

Dimension range

range

Length

(Tonnes)

(mm)/ Profile

(mm)

(metre)

End use / consumers

CR80,100 & 120

Angle

Lt. Structurals
Merchant
Mill

65x65

70x70,

75x75

80x80,

90x90

Channel
5,00,000

TMT

50x50,

Round

75x40,

100x50

Engineering

TMT

and

Infrastructure Projects

20, 25, 28, 32, 36,

40,45
Rounds

(Plain)

28, 30, 32, 36, 40,

50, 53, 56,63, 67
Wire

Rod Wire Rods(Plain)

Mill

Wire Rods (TMT)

4,00,000

5.5,

6,

7,

Electordes

8, 10, 12

Manufacture

Infrastructure Projects
Boilers,

Plate Mill

Plates

9,50,000

1500

8 160

4.5 - 15.0

3300

Defence

,Railways, Ship building,

LPG cylinders, Irrigation,
Export

Bloom,
Slab
Semis

&

NWS
Billets

from BBM
HC Bloom from
CCS

Billets
5,53,000

902 , 1002 , 1102

Re-rollers

Blooms
1502 , 3202

Slab from CCS

Pig Iron

Foundry
Ammonium Sulphate (Fertiliser)- Brand Name -RAJA
Coal Chemicals

Tar
(Pitch,

By

products,
Napthalene,

Creosote

Oil

Road

Tar,

Anthracene oil, Dephenolised oil, PCM etc.),

Products

Benzol
Processed Slag

products

(NG

Benzene,

Toulene,

Xylene,

Solvent oil, Heavy Benzol etc.)

Granulated slag from CHSG Plants & SGP for cement manufacture

Special Products of SAIL-Bhilai Steel Plant and their applications

Long Products
RAILS
Product

Application

Rail (Carbon-Manganese; 90 Kg/mm2 UTS)

Railway Tracks all over the country & also for export customers.

High YS/UTS Rail (V/Nb Micro-alloyed)

Heavy haulage, high density railway tracks

Corrosion Resistant Rail(Cu-Mo & NCC)

Corrosion prone regions, mainly coastal areas

Cr-V alloyed High Strength (110 Kg/mm2 UTS)

Heavy haulage, high traffic density railway tracks; developed for

Rail

Dedicated Freight Corridor

Thick Web Asymmetric Rail

High Conductivity Rail (Rimming quality)

For making high speed switches to be used at Points & Crossings

in Railway tracks.
High conductivity rail or Third Rail for Metro Trains, made of
Rimming steel.

RAILS
Product

Application
Crane rails in CR-80/CR-100/CR-120 sections, used for tracks of

Crane Rail

different types of cranes

MERCHANT & WIRE ROD PRODUCTS

EQR TMT Bar & Wire Rod (8, 10, 12, 25, 28,

Construction of high-rise buildings, bridges & structures in seismic

32, 36 & 40mm)

prone areas

HCR TMT Bar & Wire Rod (8, 10, 12, 25, 28,

Construction of high-rise buildings, bridges & structures in

32, 36 & 40mm)

corrosion prone areas

Rimming steel for EQ grade Wire Rod

Production of low current consuming Arc Welding Electrodes

Drawing quality Wire Rod(SWR-10,SWR-14)

SAIL MA 410 structurals

Drawing of Wire Rods into thinner gauge wires for different

applications
For construction sector, requiring higher tensile strength
For re-rolling into high strength structurals, for construction of

SAIL TOWER Semis

Transmission Line Towers

Flat Products
PLATES
Product

Application

Thicker gauge plates (upto 150mm thickness) in

Structural quality as per national/ international

Fabrication of heavy duty structures in the construction

specifications (IS 2062 E250, ASTM A36, EN 10025

industry

S235/S275, etc.)
High Tensile plates (SAIL MA 300/350/410/450, IS 2062
E300/E350/E410/E450, EN 10025 S355, JIS G 3106
SM490 A/B, ASTM A572 GR.42/50, etc.)

High strength applications in the construction sector,

high-rise buildings, bridges, flyovers, heavy
machineries, earthmoving equipments, windmills,
thermal/hydel power projects
As rolled plates for applications like Penstocks, heavy

Ultra High Strength plates (SAIL MA 550/600, SAIL HITEN

duty machineries, defence equipments, thermal/hydel

690AR, etc.)

power projects (used in place of quenched & tempered

steel plates)

Boiler Quality plates for use at Intermediate & higher

temperature in grade IS 2002 Gr.I/II/III, ASTM A / ASME SA

Fabrication of boiler body &/or its different constituents

515 Gr. 60/65/70

Boiler Quality plates for use at Moderate & Lower
temperature in grade ASTM A / ASME SA 516

Fabrication of boiler body &/or its different constituents

Gr.55/60/65/70
High strength Pressure Vessel Quality plates for use at

Fabrication of pressure vessels, storage tanks,

lower temperature in grade ASTM A / ASME SA 537 Class

mounded vessels used for storing liquefied gases at

PLATES
Product

Application

1, EN 10028 P275

high pressure

Creep Resistant plates in ASTM A204, EN 10028

High temperature application requiring creep

Gr.16Mo3

resistance property

Ship Building quality plates in LRS Gr.A/B/D, ABS Gr.A,

DNV NV32, AH/DH 32/36
DMR 249A grade plates
Line Pipe Quality plates in grades API 5L X-52/X-60/X65/X-70
Corrosion Resistant steel plates in grades SAIL-COR,
ASTM A 588 Gr.A, IRS M-41, ASTM A 242

Wear Resistant plates in SAIL-HARD quality

Soft iron steel plates
DMR 249A grade plates

Construction & repair of Merchant Navy / Cargo vessels

Nickel alloyed Steel with High strength & low
temperature toughness for Naval Ships
Construction of Line pipes for carrying Oil & Gas
Applications requiring atmospheric corrosion resistance
generally structurals for construction sector & railway
wagons & coaches
High strength plates with certified minimum hardness
level, for applications requiring wear resistance
For use in construction of magnet
Nickel alloyed Steel with High strength & low
temperature toughness for Naval Ships

4.HUMAN RESOURCE DEPARTMENT

HRD and management services in steel plant
Training needs assessment and provision of technical and management taining.
Setting up training system and facilities.
Training for operation, maintenance and Management of steel plant.
Training of trainers.
Management development programs.
Recruitment services.
Appraisal and reward systems.
Preparation of personnel and training manuals.
Software development and system design.
Total quality management and ISO-9000 Certification.
Corporate planning.
Bench marking
Corporate restructuring.

Marketing and distribution.

In addition to successful completion of a number of assignment in India. SAILCON has certified
clients in Egypt, Saudi Arabia, Iran, Qatar, Bangladesh, Oman, Philippines, Nepal, Taiwan, and
Thailand.
HUMAN RESOURCE DEVELOPMENT activities in Bhilai Steel Plant
HRD initiative in Bhilai Steel Plant have been taken up since 1986. As a part of Human Resource
orientation of the SAIL turn around strategy. A massive communication exercise, the largest in the Indian
corporate sector, tiltled, priories for Action was undertaken covering all employees for the purpose of
identifying area of organization priority and step to be taken for implementation of appropriate action
plan. The five priority areas identified here,

Improving work culture.

Making optimum use of installed facilities.
Increasing productivities.
Generation of profit through control of cost.
Provide better customer service.
OBJECTIVE OF HRD PROGRAM IN BHILAI STEEL PLANT
In the light of the above, the objective of HRD program in bhilai has been identified as under:
1. To evaluate to what extent the personnel department in Bhilai is carrying out all the
required HRD function and to suggest major to bridge gap whenever existing.
2. To introduce a system of assessing the competency level of the manager in personnel and
training department and to suggest developmental action as may be necessary.
3. To review a structural dimension of personnel HRD function and suggest action to
building an integrated HRD system.
4. To be sensitive to suggestion of line manager of HRD activates and keep them informed
about the outcomes.
5. To strengthen the concept of planning in HRD activities imitating intervention in new
area under as a five year HRD plan.
6. To develop and maintain a comprehensive information system on Human Resource for
speedy and accurate decision making in HRD areas.
7. To analyse and take initiative in HRD activities like role clarity value clarification,
increased communication and more objective reward.
8. To shape HRD policies, integrated if with the SAIL corporate vision and plans, and aim it
having more competent people, better developed role, higher job satisfaction, better
organizational health, closer team work and creating a learning climate.

MANPOWER PLANNING SECTION

Man power planning is not new to SAIL it was extensively used at the time when HSL set up its IMT
plant in the late 50s again when they expanded around the mid 60s.

A number of Indicator points to the need for extensive use of careful manpower planning if optimal use of
human resource is to make.
Labour productivities in steel plants is only a fraction of those prevailing in most other countries.
The cost of Indian steel, which at one time used to be among cheapest in the world is now above the
international level.

OBJECTIVE OF MANPOWER PLANNING

A Sound manpower planning practice would enable to achieve the fllowing objectives.
1. A fair assessment of manpower catering to the present as well as future need particularly in
context of expansion and modernization of the unit of plant.
2. Progressive improvement in work practice and in turn improvement productivities.
3. Assessment of changes in skill required due to adaptation of new technology.
4. Identifying surplus, assessment of potential, re-training and re-development in the context of
future need.
TRAINING AND DEVELOPMENT IN BSP
Employee undergo training in many areas and topics keeping in view the requirement of department both
short term and long term. Topics of course can be broadly classified as;
1.
2.
3.
4.
5.

Training of new out route.

Training of modernization and expansion of old unit, new unit and new skill.
Multi skill re-training.
Training program outside the organization.
Program to enhance managerial skill and efficiency.

RECRUITEMENT
In bhilai steel plant recruitment is done through the divisional employment exchange, whenever the
number of vacancies exceed, the divisional employment exchange of Durg district distribute 50% of the
vacancies to the exchange of the region like Raipur, bilaspur, korba districts etc.

TYPES OF RECRUITMENT IN BSP

1. External requirement : for a few new candidate through employment exchange sportsman in LTA
grade.
2. Internal requirement : from one department to other department. Eligilble candidate can go in
higher grade also.

3. Requirement and compassionate ground.

5. ENGINEERING DEPARTMENT

PLANT PROCESS FLOW CHART OF BHILAI STEEL

Flow Chart 1 BSP

2.1 BLAST FURNANCE

2.1.1 INTRODUCTION

The first step in the production of steel is to produce iron, and iron production involves
separating iron from iron ore. There are mainly three basic methods of producing iron: Direct
Reduction, Iron Smelting and the Blast Furnace method. Direct Reduction method includes both
gas and coal based processes. The product coming out of these processes (Sponge Iron or Direct
Reduced Iron) is in the solid state. Electric Arc Furnace follows DRI process for the production
of crude steel. In Iron smelting process coal and iron ore fines are used as charge materials and
liquid product will come out of the furnace, example Corex process. EAF or BOF route is
followed for steel making. For achieving high production rates with great degree of heat
utilization Blast Furnace (BF) route is the most economical way till date. So Bhilai Steel Plant,
which is an ore based Integrated Steel Plant had chosen Coke ovens Blast Furnace BOF /
THF route for the production of crude steel.

Figure6. Blast furnace 4

What is a Blast Furnace? BF is a counter current heat and mass exchanger, in which solid raw
materials are charged from the top of the furnace and hot blast is sent through the bottom via
tuyeres. The heat is transferred from the gas to the burden and oxygen from the burden to the
gas. Gas ascends up the furnace while burden and coke descend down through the furnace. The
counter current nature of the reactions makes the overall process an extremely efficient one. In
the blast furnace process iron ore and reducing agents (coke, coal) are transformed to hot metal,
and slag is formed from the gangue of the ore burden and the ash of coke and coal. Hot metal
and liquid slag do not mix and remain separate from each other with the slag floating on top of

the denser iron. The iron can then be separated from the slag in the cast house. The other product
from the Blast Furnace is dust laden blast furnace gas, which is further cleaned in the gas
cleaning plant and is used as a fuel all over the plant.

2.1.2 BLAST FURNACE CONSTRUCTIONAL FEATURES

Figure7. Blast Furnace Construction

A blast furnace has a typical conical shape. The sections from top down are:

Throat, where the burden surface is.

The shaft or stack, where the ores are heated and reduction starts.

The bosh parallel or belly and

The bosh, where the reduction is completed and the ores are melted down.

The hearth, where the molten material is collected and is cast via the tap hole.

2.1.3 BLAST FURNACE PROCESS

The basic raw materials and their functions:

Iron Ore: Iron bearing materials; provides iron to the Hot Metal

Sinter: Iron bearing material. Fines that are generated in the plant are effectively utilized
by converting them to sinter. Provides the extra lime required for the iron ore that is
charged in the blast furnace.

Coke: Acts as a reductant and fuel, supports the burden and helps in maintaining
permeable bed.

Limestone: Acts as Flux. Helps in reducing the melting point of gangue present in the
iron bearing material

Manganese Ore: Acts as additive for the supply of Mn in the Hot Metal

Quartzite: Acts as an additive

Coal Dust: Acts as an auxiliary fuel, reduces coke consumption in the BF

Coal Tar: Acts as an auxiliary fuel, reduces coke consumption in the BF

Pellets: Iron bearing materials. Although not in use right now, there is a proposal to
utilize the fines below the sinter grade for pellet manufacturing and the pellets formed are
going to be charged in the BF.

The very hot gas ascends through the furnace, carrying out a number of vital functions.

Heats up the coke in the bosh/belly area.

Melting the iron ore in the burden, creating voidage.

Heats up the material in the shaft zone of the furnace.

Removes oxygen of the ore burden by chemical reactions.

Upon melting, the iron ore produces hot metal and slag, which drips down
through the coke.

Zone to the hearth, from which it is removed by casting through the taphole. In the dripping zone
the hot metal and slag consume coke, creating void age. Additional coke is consumed for final
reduction of iron oxide and carbon dissolves in the hot metal, which is called carburization.
Thus the liquid products Hot Metal and Slag settle in the Hearth. These two products are
removed periodically from the blast furnace. The process is called tapping the blast furnace. The
other gaseous product, which is going to the top of the furnace, contains dust in it. It is cleaned in

the Primary (dust catcher); Secondary (ventury and scrubber) and Tertiary (electro static
precipitator) gas cleaning system and the cleaned gas is used as a fuel all over the plant.
It will take minimum 6-8 hours for the solid raw materials that are charged from the top to reach
the bottom, whereas gaseous products that are sent through the tuyeres will go out in 2-8
seconds.

2.1.4 we can divide the department into three main sections.

1. Raw Material Section (Charging)
2. Furnace Section and
3. Auxiliary Section
2.1.5 RAW MATERAL SECTION (Charging):
The main responsibility of this section is to receive the raw materials required for the production
of Hot Metal from various sources, storing and transporting them to the top of the furnace in
time, for the smooth running of the furnace.

2.1.6 FURNACE SECTION

Blast Furnace is a vertical shaft furnace, enclosed in a welded shell, lined with fire-clay bricks of
high alumina content. The hearth bottom, hearth, bosh, belly and the shaft are cooled by means
of coolers of various designs. Steel refractory lined plates protect the walls of the furnace top. In
BF # 7 copper staves had been installed in recent modernization for cooling the shaft.
The bigger furnaces are lined with carbon blocks in the hearth and in the periphery of the hearth
bottom.

2.1.7 AUXILIARY SECTION

The auxiliary section of Blast
Furnace consists of following
Section :
1. Ladle Repair Shop
2. Pig Casting Machine
3. Cold Pig Yard
4. Tap hole Mass Shop
5. Slag Dump Post

Figure8. Auxiliary section of Blast Furnace

2.2 STEEL MELTING SHOP- I

2.2.1

INTRODUCTION

FlowChart2. SMS I
Steel Melting Sop - 1 (SMS-1) follows the conventional route of steel making in which steel is
produced through Twin Hearth furnaces and cast into ingot moulds.
Initially SMS-I was set up to produce 1 MT steel annually, from 6 Open-Hearth furnaces of 250

T capacity each. First tapping was done on 12th October 1959. Sixth Open-hearth furnace was
commissioned on 22nd February 1961. Later on it was decided by the corporate management to
increase the capacity of the shop to 2.5 MT, by installing 4 more open hearth furnaces of 500 T
capacity and converting OH no. 6 from 250 T to 500 T capacity, which was completed on 14th
April 1967. Steel production through Open-hearth furnaces had the following drawbacks :
1. Low productivity.
2. Cumbersome operation of the furnaces.
3. Higher fuel & refractory consumption.
To overcome the above drawbacks it was decided by the management to replace open hearth
furnaces by Twin Hearth furnaces (Both hearths having capacity of 250 T each). The following
table shows the commissioning of different twin-hearth furnaces (by replacing different openhearth furnaces)
2.2.2

PROCESS DETAILS
CHART1. Commissioning of different THF by OHF

Sl. No.

TH Furnace

Replaced OH. Furnace

Date of Commissioning

10

12/09/86

Remaining

1,2,3

01/01/90

two

4,5,6

29/06/92

hearth

21/01/98

open-

furnaces,
i.e. No. 7 &

9 have been scrapped, and presently SMS-I has four twin hearth furnaces only. The production
capacity of the Shop is 2.5 MT by running 3 Twin-hearth furnaces at a time.
For maintaining temperature of the hot metal. Two mixers have been installed in SMS-I, one at
each end of the main building. Both the mixers are drum-type, inactive mixers, lined with
magnesite bricks, having a capacity of 1300T each. An average temperature of 1300C is
maintained with burners using coke oven gas as fuel. The hot metal in mixer contains following
(averagely):

- 3.5 to 4.0%

Mn

- 0.6%,

- 0.045%,

- 0.18% to 0.22%

Si

- 0.6% to 1.2%

SMS-I comprises of various sections for melting, casting & stripping of 2.5 MT ingots annually
The main sections are :
1.
2.
3.
4.
5.

Mixer
Stock Yard
Furnace
Pit side
Mould Yard

Figure9. SMS I, Hot metal pouring

2.3 WATER SUPPLY DEPARTMENT

Water is one of the most important inputs for steel making, as are iron ore, limestone, coal,
power and transport. In Bhilai Steel Plant, water is used for cooling, quenching, dust collection,
scale breaking, steam raising, lubrication, fire fighting etc .Bhilai Steel Plant gets its water
requirement from the reservoirs which are now under the jurisdiction of Chhattisgarh State
Irrigation Department.
To meet the requirement of BSP at 1.0 MT stage, Gondli Reservoir of 3.4 TMC capacity was
developed in 1956 by the State (MP) Irrigation Department. In order to meet the increased
requirement of water at 2.5 MT stage, Kharkhara Reservoir of 4.9 TMC capacity was constructed
in 1966-67. With the commencement of 4.0 MT Expansion of the Plant in late seventies,

necessity for additional source of water was felt and this additional water requirement of BSP
was assured from Mahanadi Reservoir complex.
Raw water is conveyed to BSP by open unlined Tandula Main Canal which is 69 kms. from
Tandula Head Works. Tandula canal is connected to Kharkhara and MRP by respective feeder
canals. Water released from irrigation reservoirs (Tandula & MRP complex) is received and
stored in a site storage reservoir, having a capacity of 36 million cubic meters, and is called
Maroda-II.
2.3.1 The storage capacities of Reservoirs:
A. State Government Irrigation Department :
1. Kharkhara - 144.95 Million Cubic Meters.
2. Tandula - 302.27 Million Cubic Meters.
3. Gondli - 96.56 Million Cubic Meters.
4. Ravi Shankar - 767.00 Million Cubic Meters.
5. Dudhawa - 284.00 Million Cubic Meters.
6. Murrom Silli - 162.00 Million Cubic Meters.
B. Bhilai Steel Plant :
1. Maroda-I - 9.09 Million Cubic Meters.
2. Maroda-II - 35.90 Million Cubic Meters
2.3.2 The major units of water supply department are :
1. Pump Houses - 70 Nos.
2. Cooling towers - 85 Nos.
3. Radial Settling Tanks - 22 Nos.
4. Horizontal Settling tanks - 96 Nos.
5. Filter Houses - 02 Nos.
6. Oxidation Ponds - 04 Nos.
7. Water Chemical Treatment Plant - 02 Nos.
8. Chlorine Stations - 03 Nos.
9. Over Head Tanks - 12 Nos.

10. Ash Pond - 01 No.

2.3.3 Different types of water & their consumers :
1. Drinking water - For Drinking and Fire-Fighting.(Throughout the Plant & Township)
2. Industrial water - For Industrial use and Fire Fighting. (Throughout the Plant)
3. Raw water - WCTP-1 (PBS), WCTP-2 (PP-II) &WCTP-3 (PM, Concast, Converter)
4. Soft water - Concast, Converter- 130 T ladle furnace& Oxygen Plant-II.
5. Deaerated water - Plate Mill and Converter.

Figure10. Water Softening Tank

2.4 MACHINE SHOP - II

Machine Shop-II is the new machine shop which is built under 4 MT expansion of BSP tocater to
the spares and assemblies requirements of Convertor Shop, Continuous Casting Shop, and Plate
Mill. The shop has got two machining bays (Light bay and Heavy & Medium bay78 x 24 M
each), and one Assembly bay (72 x 24 M) which forms a Tee with the machining bays.
Working Area of the shop : 5161 M2
Electrical Power : 1 MVA
2.4.1 CAPACITY
Annual machining capacity: 2400 T
Annual assembly capacity: 4800 T
Main assemblies done are 5-roll set, 8-roll set, 10-roll set, and Pinch rolls used in Slab Caster of
Continuous Casting Shop.

2.4.2 MAIN EQUIPMENT

1 Vertical Boarding machine

: 1 No

2 Horizontal Boarding Machine

: 1 No

3 HMT Lathe

: 8 Nos

4 Cylindrical Grinding Machine

: 1 No

5 Heavy Duty Lathe

: 1 No

6 Plano Milling Machine

: 1 No

7 HMT Horizontal Milling Machine

: 1 No

8 HMT Universal Milling Machine

: 1 No

9 Slotting Machine

: 2 Nos

10 Shaping Machine

: 1 No

11 Thread Cutting Machine

: 1 No

12 Auto Welding Machine 10 T

: 1 No

13 HMT Radial Drilling Machine

: 2 Nos

14 HMT Vertical Drilling Machine

: 1 No

15 HMT Surface Grinding SFW

: 1 No

16 Power Hack Saw

: 1 No

17 EOT Crane 10/5T, 20/5T, 50/10T

: 1 No each

18 Transfer Car 10T, 20T

: 1 No each

19 Heating Furnace

: 1 No

20 Auto Welding Machine

: 2 Nos

21 Horizontal Hydraulic Press 630T

: 1 No

22 Vertical Hydraulic Press

: 1 No

23 Centre lathe (L-45)

: 2 Nos

The main jobs involved are revisioning/replacing of the bearings, reclamation and
replacement of various rollers, alignments of rollers and frames, checking of hydraulic cylinders
of pinch rolls and replacement of oil seals etc. and alignment of various sets.
Apart from this mechanical spares required for Capital & Regular repairs of various departments
are manufactured as per schedule plan by Central Planning Department. Some of important

manufactured items are, hollow shaft of SMS-I Stripper crane, Cinder Notched Monkey used in
Blast Furnace, different sizes of Slide Blocks etc.
2.4.3 OTHER IMPORTANT ASSEMBLIES MADE/REPAIRED ARE:

Mud - Gun assembly of Blast Furnace,

Motorised Tong Assembly of CCS
Vertical roll & Breast Roll Assembly of Plate Mill
Roll-Cage assembly of mixer... etc.

Figure11. Machine Shop 2

2.5 BLOOMING & BILLET MILL
2.5.1 PROCESS DESCRIPTION:

Flowchart3. BBM Flowchart

Blooming & Billet Mill popularly known as Mother Mill, is a primary mill designed to roll 2.5
MT/Annum of ingots into semies in the form of blooms & billets. A two high reversing blooming
mill and 12stands Continuous Billet Mill are part of this department. The 1150mm two high
reversing Blooming Millis designed to roll steel ingots into blooms for Continuous Billet Mill
and Rail & Structural Mill. Average weight of steel ingots which are used for rolling is 8 to 9
Ton. Major sections are described below:
2.5.2 SOAKING PITS
Heating of the ingots and soaking at a particular temperature is done in the soaking pits. There
are 14groups of recuperative type soaking pits. Each group consists of 2 pits. Each pit is heated
by two burners situated diagonally opposite in the upper part of the lateral wall of the pit. The
fuel burnt is mixture of coke oven gas and blast furnace gas with a calorific value of 1450 - 1500
KCal./Cu.M. Air is preheated inceramic recuperators and the gas in the metallic recuperators.
The ingots are placed in the pits in such away so that proper circulation of the flame around the
ingot is ensured. Generally 16 ingots are placed in one chamber at a time. Strict records are
maintained to avoid mix-up.
After 4th to 5th round of rolling, cleaning of the pit is done by scrapper bar held by the tongs
crane and bottom is made with two buckets of Coke Breeze. Out of the 28 pits (14x2), 22 to 26
pits are under operation depending on requirement and the balance is under repair/reserve.
Operational data of Soaking Pits
Dimensions of the pit
Length : 6.7m, Width : 4.2m , Depth : 4.5m
Soaking temp. : 1280 to 1320 deg.C
Pit pressure : + 0.2/0.3mm w.c.
2.5.3 Blooming Mill Blooming mill is a 2-High horizontal stand, equipped with individually
driven rolls. Each roll of the Blooming Mill is driven by 930 V, 8000 KW, 0-20-80 rpm motor.
Length of Roll - 2800 mm, Dia. of Roll - 1150 mm (Min.1100mm & Max.1180mm)Rolls are
used in pairs. Each roll set is ground with the required pass design (4 including the shaped beam
pass). After rolling of about 1 lakh ton, the rolls are charged. The used rolls are sent for
redressing in Roll Turning Shop. After redressing they are assembled and reused. The Top Roll is
balanced by counter weights. It is moved up and down by screw down mechanism driven by two

motors mounted on the top of the stand. There are manipulator side guards on both sides of the
Roll stand.
i) 320 x 320 mm
ii) 265 x 340 mm
iii) 260 x 300 mm
iv) Shaped blooms for Beam-450mm & Beam-600mm
v) Narrow Width Slab 200 x 320 mm
vi) Narrow Width Slab 200 x 420 mm
2.5.4 BLOOM STORAGE : Blooms assigned for Rolling in the Rail & Structural Mill and
requiring inspection and conditioning are transported hot, by 15 ton over-head cranes and
stacked in specified areas depending on quality of steel. IS/ISO-14001: 2004
2.5.5 BILLET MILL: The Billet Mill has been designed to roll billets from blooms of cross
section 325x325 sq.mm in 6 to 12passes depending on cross section of billets to be produced in
the Mill. The capacity of the Mill is15,01,000 Tonns/Year.The Mill consists of 12 working stands
arranged in three groups.
a. The First group contains Two 2-High Horizontal stands with a 90 deg. tilter in between. These
stands are equipped with rolls of diameter 1000mm and length 1200mm.
b. The Second group called the roughing group contains 4 stand - 2 each of Horizontal and
Vertical stands arranged alternately. These stands are equipped with rolls of diameter 700mm.
c. The Third group called the finishing group located after the transfer table contains 6 stands 3horizontal and 3 vertical stands arranged alternately. These stands are equipped with rolls of
diameter 500mm.
Rolled billets after the roughing group of stands which are not to be rolled further are transported
by transfer table and by pass roll table to the stationary 800T shear where they are cut into
required length. The billets are gathered and transported to cooling bed by roll tables.
Billets from roughing group intended for further rolling in finishing group are transferred to the
last group of stands. If necessary, the front end of billet can be cropped off by 250 T shears
installed in front of the group. After rolling in the finishing group, the billets are cut by flying
shears into billets of length 5 to 12m.After cutting, the billets are transported to cooling beds by
roll tables and transfer skids.
SECTION OF BILLETS ROLLED ARE

1. 150 x 150 mm From Roughing group

2. 110 x 110 mm
3. 105 x 105 mm From Finishing group
4. 100 x 100 mm
5. 90 x 90 mm
2.6 CAPITAL REPAIR & MODIFICATION (CRM-MECH. /STRL.)
2.6.1 INTRODUCTION
This department was established in 1971 primarily to carry out capital repairs of Blast furnaces
and Open Hearth Furnaces. Later on it got involved in capital repair of other units also, like
Rolling Mills, RMP-1, Coal Chemicals Department etc. Presently the department is primarily
made responsible for organizing capital repairs of Blast Furnaces. Jobs are executed partly
through contractual agencies, while carrying out various assignments during all preventive
maintenance shutdowns in different units by central maintenance organization as also for
carrying out riveting jobs at site.
At present the department is having three sections namely Mech.-1, Mech.-II and
Planning. Manpower of the department is 197, including 15 executives.
2.6.2 SOME SPECIAL ACHIEVEMENTS

Replacement of Converter-A vessel at SMS-2.

Installation of Hanging Platform Insertion arrangement in Bell-less Top of Blast Furnaces
Replacement of well of stripper Crane-3.

Capital repair in Blast furnace 6 (level II extended)

Figure12. Maintenances of blast furnace No 6

CHAPTER- 5
SWOT ANALYSIS

SWOT Analysis
The primary function of Bhilai Steel Plant are derived from the functions of the mother
organization SAIL. As a production unit of SAIL, BSP carries out the specific functions and task
assign to it from time to time, both with regards to production and execution of other functions of
SAIL, such as design consultancy, training and development etc. The primary analysis of any

organization begins with the SWOT Analysis. It gives a complete picture so as to where an
organization stands with respect to its competitors
And areas where its lags behind. It also gives a bird eye view f the possible opportunity that
exists which can be capitalize upon the threats that may affect its operations at present or in the
future.
SWOT
Strengths:

Capacity of plant
Product Mix
Quality of Products
Human Resource & Management

Weakness:
Supply of Raw Materials
Demurrages
Rigidity of Labor Law compared to other countries
Opportunities:
Upsurge in Indian Economy
Technological Edge
Human Resource Management
Threats:

Effect of Custom Duty

International Competition
Domestic Competition
Increase in Oil Prices
Depleting Mines

CHAPTER-6
FINDING, SUGGESTION
AND
CONCLUSION

SUGGESTION

CHAPTER-7

BIBLIOGRAPHY

REFERENCES
My plant work visit book , A Release of Training & Management Development
Department, BSP

Chapter 1 by Arun Topono, Sr. Mgr.-PR

Chapter 9 by Kaushik Basu, Dy. Mgr. (O)
Chapter 10 by S.B Das Adhikarey, GM
Chapter 15 by R.K Gopal, AGM
Chapter 40 by Satnam Singh, AGM
Chapter 67 by S,C Mehta, AGM & A.Nayyar, AGM
Chapter 75 by P.S Thakur, AGM

http://www.itclearning.com/blog/?p=1565
http://www.sail.co.in/
https://www.sail-bhilaisteel.com/
http://en.wikipedia.org/wiki/Bhilai_Steel_Plant
http://www.icai-bhilai.org/contents/about-bhilai.php
http://articles.economictimes.indiatimes.com/keyword/bhilai-steel-plant
http://www.firstpost.com/tag/bhilai-steel-plant
http://www.business-standard.com/article/companies/record-production-of-

saleable-steel-in-bhilai-steel-plant-114011000806_1.html
http://www.mapsofindia.com/chhattisgarh/economy/bhilai-steel-plant-bhilai.html
http://www.fieldtofactory.lse.ac.uk/SteelPlantHistory.htm
Notes provide by Mr. K.V. RAJU ,SR MANAGER (FINANCE AND
ACCOUNTS DPT.) and Mr. ABHISHEK KOCHAR (Jr. MANAGER) EXCISE
DEPT.