Professional Documents
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IN
THE NAME
OF ALLAH,
THE BENEFICENT,
THE MERCIFUL
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AKNOWLEDGEMENT
All praises and gratitude due to ALLAH who created man in HIS own image and enjoyed
upon him to ravel on the earth and enter into a profound and analytical study of Universe
for spiritual appreciation of ALLAH’s unity and HIS attribute as well as for harnessing
the material manifestation of the world to the mankind’s profitable utilization. In the first
At the next stage I offer gratitude to our Apostle and prospector Prophet MOHAMMAD
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DEDICATED
TO MY PARENTS
WHO ALWAYS
LOVE ME
And all those who have a soft corner for me in their hearts and always prayer for me
for my success.
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DECLARATION
I hereby declare that the project work entitled “Feasibility report on purchase of
power plant for industrial unit”
submitted to the Riphah international University Islamabad, is a record of an original
work done by me under the guidance of My Respectable teacher Mr.Syed Tanvir
Hussain Kazmi, and this project work has don.
Performed the basis for the award of any Degree or diploma/ associate
ship/fellowship and similar project if any.
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TABLE OF CONTENTS
SR. NO. DESCRIPTION PAGE NO.
1 Executive Summary 7
2 Introduction 8
3 Theoretical Aspects 17
4.1 Feasibility 25
5.1 Conclusion 67
5.2 Recommendation 67
6 Bibliography 68
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1. EXECUTIVE SUMMARY
This report template provides the method of making feasibility report for industrial unit of
any investment for the production of business. How we choose the best product for
organization to increase its productivity. Moreover, tell about the industry situation in
Pakistan and what is the problems facing now a days.
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2. INTRODUCTION
2.1.a OBJECTIVES
This research is focusing on the problem facing by the textile unit in Pakistan due to the
energy shortfall, how can we remove it, and what is the feasible way to overcome this
problem.
2.1.c LIMITATIONS
The research is based on fake industry but we use the actual values of the product, actual
capacity of production and actual consumption of the equipments. And actual value of the
quotations of gensets on rent and as well on purchase point of view.
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2.2 GENERAL INTRODUCTION TO THE
INDUSTRIAL SECTOR
In recent years economists have begun to pay considerable attention to what are
coming to be called "General Purpose Technologies". The central idea is that there have
been a small number of technologies characterized by a potential for widespread use in
many sectors of the economy and, in addition a high degree of technological dynamism.
Further, the diffusion of these general purpose technologies throughout the economy is
said to give rise to "innovational complementarities," that is, "the productivity of R&D in
a downstream sector increases as a consequence of innovation in the GPT. These
complementarities magnify the effects of innovation in the GPT, and help propagate them
throughout the economy.
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a. THE SECOND INDUSTRIAL REVOLUTION
Of course, the chemical industry itself was not new, in the sense that human
beings had been conducting useful chemical transformations for, literally, thousands
of years. What is distinctive about the electricity industry, however, is that it was, in all
respects, a new industry, a product of 19th century scientific progress. Consequently,
it should be dated, with apologies to Volta and Galvani, from Faraday's discovery, in
1831, of electromagnetic induction.
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transmission of electricity over long distances. Far from least, it would include the
electric meter, without which the efficient utilization of electricity would not have been
possible.
But my focus in this paper is both more narrow and more far-reaching. Electricity
is, of course, not a primary source of energy. It is, rather, a form into which primary
energy sources can be converted. Many of the distinctive advantages of electricity
derive specifically from the form that it can take rather than from any narrow
efficiency calculation as measured in terms of BTUs. Indeed, one of electricity's
greatest, but largely unsung virtues, is that it can make use of many energy sources -
fossil fuels (coal, oil, gas), hydro, nuclear, solar. It therefore makes possible the
substitution of one primary energy source for another, a feature that may sometimes
be of considerable strategic as well as economic value, although it is easy to
underestimate the cost of shifting from one primary energy source to another.
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b. FEATURES OF ELECTRIFICATION
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2.3 TEXTILE SECTOR- OVERVIEW
The share of textile industry in the economy along with its contribution to exports,
employment, foreign exchange earnings, investment and value added makes it the single
largest manufacturing sector for Pakistan. It contributes around 8.5 percent to GDP,
employs 38 percent of the total manufacturing labor force, and contributes between 60-70
percent to total merchandise exports. Indeed, with exports reaching about $8.6 billion in
2004-05, Pakistan is one of the largest textile exporters in the world.
The variety of products ranges from cotton yarn to knitwear. Garment made-ups and bed
wear are the most important export products with an export value of about $1.35 billion
each. Knitwear, readymade garments and cotton yarn also have important shares in total
exports. Overall, the US and the EU are Pakistan’s largest trading partners accounting for
25 percent and 20 percent share of Pakistani exports respectively. Other major importers
include China, UAE and Saudi Arabia. Textile trade is classified into two broad
categories i.e. textile which include yarn, fabric and made-ups, and clothing which
represents readymade garments.
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Investment in Textile Sector
Textile industry has made an investment of about $6.0 billion during the last
six years. This investment includes both investments through bank loans as well as
own sources. This investment has been made in the form of BMR expansion and new
capacity. Textile machinery worth US$ 0.6 billion has been imported during 2005-
06. the import of textile machinery for the last seven years are documented in Table
and Sector wise Investment is shown in figure
2004-05 700 17
Total 3472
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Reforms in the Textile Sector
The government is providing support for the local production of textile machinery.
A wide-ranging campaign to produce contamination free cotton in the country with a view
to promoting value addition has already been started. As a result, the cotton prices are
now being quoted on a PSCI grade standard basis. To ensure an abundant supply within
the country, cotton is allowed to be imported and exported freely. To stabilize prices in
the domestic market, the Trading Corporation of Pakistan (TCP) has been intervening as
and when required.
In order to prepare the textile industry in the post quota regime the government has set up
a high level Federal Textile Board with Textile Commissioner’s Organization serving as
its Secretariat. The Board has been entrusted the task of looking into the issues of clean
cotton, labor, social and environment laws, modernization of ginneries, rationalization of
tariffs, facilitation in sales tax issues and developing a package to promote garment sector,
especially by improving their competitiveness in international market.
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3. THEORETICAL ASPECTS
Particulars Rs.
Contingencies 1,000,000
Total 78,000,000
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3.2 WEAVING MACHINERY
Toyota Industries develops and manufacturers air jet looms, which insert the weft
yarn using air. We provide our customers all over the world with state-of-the-art
weaving machinery that excels in speedy and reliable performance
The JAT710 is designed with the same concept as the JAT610: “weaving the highest quality
fabric at the lowest possible cost,” and boasts improved features such as higher speed, lower
vibration and lower energy consumption. Plus it is equipped with the latest electronics technology
such as a new internet-capable color function panel, taking today’s weaving mill into a new
dimension.
• Weft insertion: single electric drum, 2-, 4-, 6-color exchange electric drum
• Nominal reed space: 140cm, 150cm, 170cm, 190cm, 210cm, 230cm, 250cm, 280cm,
340cm, 360cm, 390cm
• Shedding: negative cam, positive cam, crank, dobby, electric shedding, jacquard
Toyota Industries Corp. started production of its new JAT710 air-jet loom in January this
year.
In developing the JAT710, Toyota took its best-selling JAT610 air-jet loom a step further,
while keeping in mind that the needs of the weaver have become more diverse and
complex as our world becomes increasingly information oriented. The JAT710 has been
designed under the same concept as the JAT610; i.e., “weaving the highest quality fabric
at the lowest possible cost,” and boasts a number of improved features such as higher
speed, lower vibration and lower energy consumption. Moreover, the latest electronics
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technology used on the JAT710 including a new Internet-capable color function panel
takes today’s weaving mill into a new dimension.
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Toyota’s new air-jet loom JAT 710
The JAT710 features 20% less air consumption as new technology achieves further
savings in air consumption compared to the JAT610, which is already well received for its
low air consumption.
Operational speeds of up to 1,250 rpm (190 cm reed space) can be attained thanks to
numerous improvements such as a new weft insertion system, a new frame structure and a
higher CPU processing speed. Machine vibration has been reduced by 30% through
further improvements over the JAT610 in the frame structure and beating motion. State-
of-the-art electronics technologies, including a new color function panel and a high-speed
CPU, offer greatly enhanced communication capabilities for advanced weaving mills.
Furthermore, a full range of standard equipment and a variety of options allow the
JAT710 to weave fabrics that were previously mostly woven on rapier looms, including
ultra-wide home furnishings fabrics, stretch fabrics, fabrics of different yarn varieties and
counts, airbags, seersucker and fabrics with tuck-in selvedges.
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3.3 PRODUCTION CAPACITY
As there is no any kind of generator facility available so the there is only two shift of
workers doing work and in 16 hours machines works only 10 hours and remaining 6 hours
WAPDA Shut down. And performance of machines is that if 10 machines continuously
worked it make 45360 meter cloth in one hour and 40 machines make 1814400 meter
cloth in one hour and in 10 hour working it make 1814400 meter cloth in one day
Calculation
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Current performance
Units Cloths / Meter
One machine on working one hour produced 4536
One machine on working 10 hours produced 45360
40 Machine on working 10 hours produced 1 814400
Monthly Production (1814400 X 30) 54432000
Yearly Production (54432000 X 12) 653184000
Shortfall of production
Units Cloths / Meter
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3.4 LOAD ESTIMATED FOR TEXTILE UNIT
Computers 0.5 20 10
UPS 4 3 12
Air Conditioners 3 10 30
Refrigerator 1 1 1
Photocopy Machine 2 2 4
Total Consumption KW 303.8
Add 20 % Variation 20X303.8/100 60
Suggested power plant 363.8
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3.5 Consumption of WAPDA Units
1 KW / Hour = 1 unit
304 KW / 10 hours = 3040 units in one day
304 X 30 (Days) = 9120 units in one month
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3.6 DIRECT AND OPERATING EXPANSES
SALARIES OF EMPLOYEES
HR Department -
Accounts Dept -
Sales Department -
Total 486,000
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Wages for workers
Name of Post Monthly Salary / Labor Hours No. of Post Total Salary
Production Dept
Minuteness Dept
Electrical Dept
Other Labor
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4. ANALYSIS OF AND DATA DISCUSSION
1. Effective cost
2. Proper use of labor
3. Fully use of machines
4. Less wastage of time
5. Maximum output
6. Maximize the profit
7. Fill filed gap of the shortfall of electricity
8. Supplier advantage
9. Competitive advantages
10. Fulfill the market demand
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G00012/RM/2011 Feb 12, 2011
Lahore
Dear Sir,
With Reference to the above mentioned subject and the subsequent telecon regarding
the supply of Diesel Generator, we have pleasure in submitting our most competitive
proposal for your kind consideration. F.G Wilson (Engineering) Ltd is a pioneer in the
design and manufacture of diesel generator sets. For over 40 years, FG Wilson has been a
major global player, world leader in the provision of power generation solutions ensuring
power is provided whenever, and wherever it is needed.
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Established since 1949, S.M. Jaffer & Co. Headquartered in Karachi has offices in
geographically strategic locations (Lahore, Faisalabad, Islamabad & Peshawar) and hence,
we are by no means out of contact when required. We are sure our offer is as per your
expectations and looking forward to serve you at our best. Thanking and assuring you of
our best services at all times, we remain.
Yours faithfully,
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TECHNICAL SPECIFICATION
F. G. Wilson Perkins Range diesel engine driven Generator set arranged for manual
electric start / stop operation, with following dominant features. D.G. Set Model P500
(F.G.WILSON)
Voltage 380-415 V
Phase 3
Wires 4
Sound Hz 50
Governor Electronic
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ENGINE:
Close control electronic governor to BS, Fuel injection equipment with fuel
lift pump. Fuel oil and lubricating oil filters. Replaceable element type
24-volt electric engine starting motor. Engine driven battery charge
alternator.
COOLING SYSTEM
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ALTERNATOR:
CONSTRUCTION / BASEFRAME;
The engine and alternator are coupled through a heavy-duty flexible drive. The
engine alternator and radiator are mounted on a robust fabricated steel base frame with
integral lifting points. Anti-vibration mountings are incorporated within the assembly.
STARTING BATTERIES:
A 24-volt lead acid battery assembly of ample capacity is supplied complete with
all necessary connectors and cables. Fitted to the base frame on battery tray complete with
retaining clamp. Batteries are supplied dry charged.
GUARDS:
Protection is provided for all rotating parts - i.e. fan cooling and alternator air
intake and outlet grills.
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POWER WIZARD 1.0 SERIES CONTROL PANEL
• Common look and from 10 to 2000kVA for ease of
Monitoring
• Two display languages, (English and a customer
• Integrated metering and controls reducing components and wiring aiding reliability and
ease of service
• Common engine wiring system allows simple upgrading between levels of panel
STANDARD FEATURES
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PANEL CONSTRUCTION AND FINISH
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Corrosion resistant surface
• Polyester composite powder topcoat forms high gloss and extremely durable finish
Component access
MOUNTING
INSTRUMENTATION
• LCD display with adjustable contrast and backlight with auto power off
• AC Meter
o Frequency
• DC Meter
o Battery Volts
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o Engine Jacket Water Temperature (in 0C or 0F)
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PROTECTION
• Fail to Start
• 20 Event fault log (name of event, engine hours at first occurrence of event, engine
CONTROLS
• 2 LED status indicators (1 red shutdown, 1 amber warning)
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• Engine and AC metering shortcut keys
• CAN 1 data link – J1939 for communicating with electronic engine control modules
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BATTERY CHARGER
Static battery charger will be provided for both trickle and boost charging of the batteries
when the engine is not in operation.
EXHAUST SYSTEM
The exhaust system incorporates the following loose equipment:
• Flexible pipe section
• Residential silencer
WORKS TESTS:
The equipment is tested against a resistive load, plus a full functional check on the
control equipment. A copy of our works Test Certificate will be supplied
FINISH
The equipment is finished with a self-etching primer applied to the complete generator set
with final finish in high gloss enamel paint.
HANDBOOKS, ETC
One set of the following are supplied in our standard format:
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Control system manual
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NOTE:
1. Any item other then B.O.Q shall be charged extra
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FG WILSON
ENGINE : PERKINS UK
ORIGIN : UK
Currency Rate : Our quoted prices are firm and final for the validity period
Note:
• We are exempt from deduction of Income Tax as per S.R.O. 97(I)/2002 dd 12-02-
2002 as the income tax has been paid at the import stage.
• D.G.Set price is based on zero rated Sales Tax as per custom S.R.O.
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PRICE B.O.Q FOR FG WILSON 500 KVA GENSET
08. Making of Earth pit for the neutral 03 No.s 5,000.00 5,000.00
& body of Genset (without boring)
As per our Standard
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10. Making of R. C.C Foundation Pad 01 Job 25,000.00 25,000.00
as per standard scope and size.
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Genset operating cost
Fuel Cost
Maintenance Cost
Genset Service required after 200 hours
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Depreciation
Total 1 0,411,500
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New Generation Technology From
Dear Sir,
With Reference to the above-mentioned subject and the subsequent telecon regarding
the supply of Diesel Generator, we have pleasure in submitting our most competitive
proposal for your kind consideration.
Yours faithfully,
Mr. Azeem
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TECHNICAL SPECIFICATION
F. G. Wilson Perkins Range diesel engine driven Generator set arranged for manual
electric start / stop operation, with following dominant features. D.G. Set Model P-500
(F.G.WILSON)
Voltage 380-415 V
Phase 3
Wires 4
Sound Hz 50
Governor Electronic
ENGINE:
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ENGINE COMPLETE WITH:
Close control electronic governor to BS, Fuel injection equipment with fuel
lift pump. Fuel oil and lubricating oil filters. Replaceable element type
24-volt electric engine starting motor. Engine driven battery charge
alternator.
COOLING SYSTEM
ALTERNATOR:
CONSTRUCTION / BASEFRAME;
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The engine and alternator are coupled through a heavy-duty flexible drive. The
engine alternator and radiator are mounted on a robust fabricated steel base frame with
integral lifting points. Anti-vibration mountings are incorporated within the assembly.
STARTING BATTERIES:
A 24-volt lead acid battery assembly of ample capacity is supplied complete with
all necessary connectors and cables. Fitted to the base frame on battery tray complete with
retaining clamp. Batteries are supplied dry charged.
GUARDS:
Protection is provided for all rotating parts - i.e. fan cooling and alternator air
intake and outlet grills.
PRICE B.O.Q FOR 500 KVA GENSET FOR RENT FOR ONE YEAR
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Earth Cable 240sq.mm, 1 Core. The length
required
08 Supply, Laying & Termination of
Control Cable 2.5sq.mm, 3 Core. Mtr. Charged damage
The length
required
08. Making of Earth pit for the neutral 03 No.s 5,000.00 5,000.00
& body of Genset (without boring)
As per our Standard
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Genset operating cost (Rental Genset)
Fuel Cost
Fuel Consumption (0.2 X 500) 100 liter
But we use 70 % capacity of the genset and at that time consumed fuel 70 liter per
hour
Rs.
70 X 70 at one hour 4,900
For Six hour 6 X 4900 29,400
Monthly cost for 30 days 782,000
Yearly Cost 782000 X 12 9,384,000
Total –A 9,384,000
Maintenance Cost
Genset Service required after 200 hours
Following items are required for service Rs.
Fuel Filter 931 5,000
Fuel Filter 930 5,000
Oil Filter 929 5,000
Lube oil 68 liter @ 400 27,200
Total Cost 42,200
Monthly running the genset 6 X 30 180
Yearly Running the genset 180 X 12 2160
Service required yearly 2160/200 10 Times
Total Service Cost 42,200 X 10 422,000
Total – B 422,000
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Rental Cost
Total 13,506,000
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4.4 SELECTION THE FEASIBLE POWER PLANT FOR
INDUSTRIAL UNIT
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14000000
12000000
10000000
8000000
Rental Plant
6000000
4000000 Personal Plant
2000000
0
Fuel Cost Depriciation
Comments:
As we see in the graph compression of rental and persona power plant there are fuel cost
and maintenance cost is equal. and the difference between depreciation and rental cost is
too much if we go for rental power plant we have to bear to much rental cost and if we go
for personal power plant we only bear the depreciation cost which is to much less as
compare to rental power plant.
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4.5. Quotation for plant
Dear Sir,
With Reference to the above mentioned subject and the subsequent telecon
regarding the supply of Diesel Generator, we have pleasure in submitting our most
competitive proposal for your kind consideration.
(Option – 1)
New 515 kW Standby Rated (460 kW Prime Rated) Diesel Kohler Generator Set.
Powered by a Volvo TAD1641GE engine which conforms to EPA Tier 2 non-road
emissions regulations. 10/12-lead reconnectable (190 - 600 V, three phase) @ 60 Hz with
a brushless, permanent-magnet alternator. This generator set offers a UL 2200 listing and
a one-year limited warranty that covers all systems and components. Comes enclosed in a
weatherproof housing.
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Generator Specification
Kohler Co. provides one-source responsibility for the generating system and
accessories.
The generator set and its components are prototype-tested, factory-built, and
production-tested.
The 60 Hz generator set offers a UL 2200 listing.
The generator set accepts rated load in one step.
The 60 Hz generator set complies with ISO 8528-5, Class G3, requirements for
transient performance.
The 60 Hz generator set engine is certified by the Environmental Protection
Agency (EPA) to conform to Tier 2 nonroad emissions regulations.
A one-year limited warranty covers all systems and components. Two-, five-, and
ten-year extended warranties are also available.
Alternator features:
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Brushless alternator with brushless pilot exciter for excellent load response.
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Other features:
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Prime Ratings: 460 kW (575 kVa)
Standby Ratings: 515 kW (644 kVa)
Hertz: 60 Hz
Alternator Type: Brushless, Permanent-Magnet
EPA Tier Level: 2
Engine Manufacturer: Volvo
Engine Model: TAD1641GE
Cylinder Arrangement: 6 Inline
Max Power at Rated RPM: 565 kWm (757 BHP)
Prime Fuel Consumption at
100% load: 121.9 Lph (32.2 gph)
75% load: 89.7 Lph (23.7 gph)
50% load: 60.6 Lph (16 gph)
25% load: 33.7 Lph (8.9 gph)
Standby Fuel Consumption at
100% load: 139.3 Lph (36.8 gph)
75% load: 101.4 Lph (26.8 gph)
50% load: 68.1 Lph (18 gph)
25% load: 38.6 Lph (10.2 gph)
Price : $89,886.00
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(Option –2)
Description:
Caterpillar 500 kW, Standby Rating, 751 Amp @ 277/480 Volt, Three Phase, 60 Hz,
CATERPILLAR Generator End, Generator End Model: SR4B, Generator End Serial#:
8HG00533, Weatherproof Enclosure, Engine Make Caterpillar, Engine Model: 3412,
Engine Serial #: 81Z18403, 625 kVa, # of Leads: 12, Reconnectable, CPL/Arrangement
#: 107-2878, 742@553kW Hp, @ 1800 RPM, Auto Start/Stop, Safety Shut Down, Air
Cleaner, 800 Amp Circuit Breaker, Muffler, Block Heater, Digital Panel, Digital Engine
Panel, Battery Charger, Radiator, 800 Gallon Double-Wall Base Fuel Tank, Skid
Mounted, Generator Dimensions: 152" L x 71" W x 124" H, Overall Dimensions: 163" L
x 79" W x 184" H, Overall Weight: 19000 lbs.
Price: $64,500.00
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4.6. Selection Of Feasible Genset
9000000
8000000
7000000
6000000
5000000 S.M.Jaffer & Co.
4000000 Nationwide Diesel
3000000 Nationwide Diesel
2000000
1000000
0
Genset Price Insallation Price Total Price
Comments:
The above graph shows the prices of two companies Generators (500kva) with
three different bands the price of S. M.Jaffer & Co. Brand (F.G.Willsion) is Price
Rs.6,055,000/- with installation. The Nationwide Diesel Company Brand (Kohler) is price
Rs. 8,285,196/- with installation and 2nd Brand (Caterpillar) is Price Rs.6,102,000/- with
installation. So I suggest that S.M.Jaffer & Co. Brand F.G.Willsion (UK) is best then
other two brands as the generator price is showed.
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5. CONCLUSION AND RECOMMENDATION
5.1 Conclusion
Textile industry which I have chosen is badly facing the short fall of energy since
a couple of years and bears a lot of shortage of production and cost of employees which
directly effected on the companies per unit cost which reduces the profit margin. So the
final conclusion of my work or research is that if a industry invest the money to purchased
a personal power plant which reduces the short fall of energy and increase the production
capacity of the industry as well as it is useful for future as an assets of the company and
beneficial for coming years.
5.2. Recommendation
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6. BIBLIOGRAPHY
Personal interviews
Though Internet
http:/www.google.com
http://www.smjafferco.com
http://ringpower-systems.com/equipment.html
http://www.dieselserviceandsupply.com/New-Generators/Kohler-515-SDMO38.aspx
http://www.opfblog.com/?s=energy+crises+in+pakistan&searchsubmit=
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