Power Projects

 

Turnkey Engineering, Procurement and Construction of Balance of Plant

Why Engineering, Procurement & Construction contracting for BALANCE OF PLANT (BOP) Systems?

Traditionally the Project procurement practice followed by various utilities in India has been the multiple package route. This no doubt has the advantages of least cost of purchase & total control over individual equipment specification but suffers from serious drawbacks like

  • Requires large number experienced staff for engineering, execution & project management for more than 15 packages from end user as well as consultant engineering
  • High project schedule risk
  • Micro level Project Monitoring required – Sub system delay could cause project over runs
  • Large interface requirements between various packages
  • Large ordering cycle time for more than 15 packages
  • Performance guarantees of the complete system difficult to prove
  • High Project cost risk: Escalation factors of individual packages Engineering changes during detailed execution will result in Cost & Time overrun
With the initiation of Liberalization process in early 90's, Utilities adopted single EPC (Engineering Procurement & Construction route) with the sole purpose objective of achieving "On time Commissioning", "Quality" & "Fixed Least Project Cost". This practice did not produce expected results as most of EPC Contractors core strengths were in Power Island namely Boiler, Turbine & Generators systems & the BOP packages were 3rd party buy outs leading to higher project cost & schedule risks.

The emerging trend in the market is seen to be combining the advantages of both the models, which means having Twin EPC Packages for procurement, One for Power Island & the other for complete BOP Island.SJK POWERGEN LIMITED is proud to be the innovator of this contracting model & leading utilities in India have already adopted the twin route procurement model in the last few years with large success in terms of project schedule & lower project cost.

Value to Customer

  • Minimum Finance risk
  • Ordering on firm price basis
  • Firm cash flows
  • Minimal schedule risk
  • Single Point Responsibility for Design, Engineering, Supply, Erection & Commissioning of a number of BOP packages
  • Least Interfacing related issues between sub systems, thereby faster commissioning
  • Shorter ordering cycle time of sub systems
  • Flexibility during engineering for design changes without affecting overall schedule
  • Flexibility in Vendor selection
  • Simpler co-ordination requirement – One point contact. Minimum staffing required from end user organization
  • Parallel progress of work on all fronts in BOP Areas
  • Enforceable Guaranteed Plant performance – Stiff Penalties that are levied as percentage of total package cost is a big deterrent

SJK POWERGEN advantage

  • Strong presence in Major Utilities in India – leadership position achieved through successful execution of large projects
  • Turnkey project design & execution capability
  • In house Design & Engineering Expertise for Civil & Structures, Mechanical, Electrical and C&I works
  • In house Design & Engineering of major system components: Chimney, Cooling Towers, Coal Handling Plant, WT Plant, OLTCS etc
  • Latest CAD tools & analytical software
  • ERP compliant
  • Strong Project Management & Execution team
  • Intellectual asset – Power plant engineering & interfacing experience
  • More than 750 man years of power plant experienced engineering team
  • Technology oriented – In house products with leading collaborators in the world