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Managing Supply Chains

for Indian Nuclear Power


Projects…….

P V Philipkutty
Associate Director
(Nuclear & Mechanical Systems), Procurement
Directorate
Nuclear Power Corporation of India Limited,
Mumbai, India
E-mail: philipkutty@npcil.co.in
Tel: +(91)2225995118 / 9869879544

15th INPRO Dialogue Forum:


Sustainable Supply Chains for
Advanced Nuclear Power Systems.
02 - 04 July 2018
IAEA Headquarters, Vienna, Austria
Present Nuclear power scenario in
India
 22 Reactors operating under NPCIL- an installed
capacity of 6780 MWe (TAPS 1-4, RAPS 2-6, MAPS 1&2, NAPS
1&2, KAPS 1&2, KGS 1-4 & KKNPP 1&2)

 8 Reactors are under construction


 2X700 MWe at KAPP 3&4 Gujarat
 2X700 MWe at RAPP 7&8 Rajasthan 6700 MWe
 2X700 MWe at GHAVP 1&2 at Haryana
 2X 1000 MWe at KK NPP 3&4 Tamilnadu

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
NUCLEAR POWER CORPORATION OF INDIA LIMITED
(A Government of India Enterprise)
Performance-Electrical generation …

Generation (M.Us)
45000

40000 37456 37674 38247


35592
34228
35000 32455 32863

30000
26472
25000
M.Us

20000 18803

15000

10000

5000

0
09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

Year

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Rapid growth planned in Nuclear
Power Sector.…
 Government of India has sanctioned plants to be built
in fleet mode - pressing speed button

 Government of India has also sanctioned large size


additional LWRs

 Government of India has also laid down expectations


in the form of 24 LWRs through import route

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Fleet mode construction of plants

 10 PHWR type Reactors of 700 MWe each –


7000 MWe

 2 LWR type reactors of 1000 MWe each –


2000 MWe

Total of 9000 MW nuclear capacity sanctioned

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Future Nuclear capacity addition
planned

 24 Reactors of LWR technology as additionality


through import route –
 6X 1650 MWe at Jaitapur, Maharashtra
 6X 1208 MWe at Kovada, Andhra Pradesh 29.000 MWe
 6X 1000 MWe at Mithivirdhi, Gujarat
 6X 1000 MWe at Haripur West Bengal

Total of 29,000 MW nuclear capacity

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Nuclear Power Plant Sites in India

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Managing Supply Chains for Indian PHWR Projects…….

 Design is standardised for 2 x 700 MWe PHWR


projects. Also the procurement policy is standardised
 All major Nuclear Components are directly procured by
NPCIL. Remaining items are procured through various
EPC packages / Site Contracts
 There are approx. 25 nos. of Supply Packages; 10 nos.
of EPC Packages and 04 nos. of major Site Contracts.
 Five Years (60 Months) Construction Schedule is
considered from First Pour of Concrete (FPC) to
Criticality

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Managing Supply Chains for Indian PHWR Projects……Cont’d.

 25 nos. of Supply Packages.


□ End Shield Package
□ Calandria Assembly
□ End Fittings and Associated Components
□ C.V Top Hatch Beams & Deck Plate Assembly
□ Air Lock Doors (MAL & AAL)
□ Zircoloy Package
□ Crane Package
□ Hoist Package
□ Drive Mechanism (AR, CR & SR)
□ Stand Pipe Thimble Package
NUCLEAR POWER CORPORATION OF INDIA LIMITED
(A Government of India Enterprise)
Managing Supply Chains for Indian PHWR Projects……Cont’d.

□ Bellow Package
□ Lifting Table
□ D2O Heat Exchanger Package, PDHRS-CD & ECCS
□ Pressuriser and Bleed Condenser
□ Reactor Header Assemblies
□ Steam Generator
□ Phosphor Bronze Wire-mesh supply
□ Primary Pump, Blowers & Compressors Package
□ Primary Coolant Pump Package
□ Distillation Column for D2O Upgrading Plant
□ Fuel Handling System Items
NUCLEAR POWER CORPORATION OF INDIA LIMITED
(A Government of India Enterprise)
Managing Supply Chains for Indian PHWR Projects……Cont’d.

 10 nos. of EPC Packages.


 Primary Piping Package
 Common Services Package
□ Plant Water Package
□ Turbine Island Package
□ Transformer Package
□ Diesel Generator Package
□ Main Plant Electrical Package
□ Nuclear Instrumentation Package
□ Control Centre Instrumentation Package
□ Field Instrumentation Package
NUCLEAR POWER CORPORATION OF INDIA LIMITED
(A Government of India Enterprise)
Managing Supply Chains for Indian PHWR Projects……Cont’d.

 04 Nos Major Site Contracts.


□ Main Plant Civil Works
□ NDCT & CCW Package
□ IDCT Package
□ Miscellaneous Civil Package

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Challenges in supply chain….
 For Nuclear Energy to be sustainable:
 The Nuclear Energy shall be cost competitive
 Timely Project completion, low down time and long plant life is
essential for the Nuclear Energy to be cost competitive in current
environment
 This needs reliable & diverse supply base (specially for Nuclear Grade
Material), who are tuned to the Nuclear requirements
 Products shall meet the specification requirements
 Localization of Supply chains is essential
 to ensure cost effective supplies
 to ensure self reliance
 to maximize the social /economic benefits

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Challenges in supply chain….cont’d
 Continuous efforts spanning over 50 years have resulted in
domestic suppliers maturing into supply of almost all Nuclear
components for PHWR Projects.
 We have very good industry base and most of the Industries in
the manufacturing sector are following ASME codes.
 Many international players also have set up manufacturing
facilities in the country either through tie-up or collaboration
with Indian Industries.
 ‘Make in India’ is a national policy today to encourage others to
manufacture in the country.
 Due to long gestation period of Nuclear Projects & wide time
gap between the projects, retaining talents in the Industry was a
big challenge.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Challenges in supply chain ….cont’d
 Despite having very good manufacturing base in the country, we are still
depending on import route for some of the specialized items like:
 Heavy Forgings for SGs, Turbine components, Rotors/Stators etc for 700 MWe
 Main Steam Safety Relief Valves (MSSV)
 SS seamless pipe above 10” (required for manufacturing of large dia pipe fittings also)
 Specialised Tube fittings (we are still using only Parker / Swagelok fittings only in
Nuclear tubing)
 Hydraulic Snubbers, He compressors, Custom Bends in main reactor loop etc
 RO/EDI membranes for DM plant
 Specialised Electrodes
 Specialised Instruments like Analysers, Transmitters
 Specialised cables like Coaxial cables / Super screen Cables etc
 Radiation Resistant Camera, Radiation Resistant Terminal Blocks etc.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Challenges in supply chain ….cont’d
 Efforts are being put in to develop domestic manufactures for
manufacturing of these items
 Facilities are being developed even with JV between state
owned NPCIL and Private industries
 For some of the items (like PCP, BFP, Turbines, Specialised
instruments etc) we have only limited domestic sources; may
have to depend on import route also for meeting our
increased demands for our Fleet mode reactors.
 Through ‘Make in India’ programme of GOI also thrust is
being given to identify such items for domestic
manufactuiring with Technology Transfer.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Challenges in supply chain….cont’d
 Challenges in the manufacturing sector
 Shortage of skilled engineers and technicians
 Cash flow issues resulting in delayed supplies
 Quality issues on the Products due to depletion of talents

 Challenges in Construction Sector


 Inability to take up large scale construction activity on a
challenging schedule
 Weak financials of the contractors affecting the site progress
 Shortage of skilled engineers and technicians

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Addressing the challenges by GOI…..
 Fleet mode construction of Reactors announced by GOI (10 x 700
MWe + 2 x 1000 MWe to be constructed in next 12 years; in addition
to 2 x 700 MWe and 2 x 1000 MWe already under construction)
broadly addresses some of the issues:
 To assure industries continuity on the job & assured business
 To encourage industries to invest in infrastructure & resources
 To retain trained talents

 Focussing on import substitutes & Technology innovations


 Technology Development Group (TDG) of NPCIL is constantly putting
efforts for indigenous development of import substitute items for use in
Reactor systems – which will help cost competitiveness and self reliance
 TDG also interact closely with Indian industries for Technology innovations &
development of new products with a view to simplify the systems & reduce cost.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Vendor Selection Process….
 Tenders are floated on Public tender process with well defined Pre-
Qualification criteria
 To encourage new players to participate and at the same time to ensure the existing
players quoting responsibly (cost competitive)

 Sub-vendors are identified in all major supply packages as well as EPC


packages through a very strict vendor qualification process, commensurate
with the technical requirements of the tender.
 The main vendor can suggest new sub-vendors – to be considered by NPCIL through
the vendor evaluation process

 Continuous assessment of performance of these listed sub-vendors.


 The list is modified in every tender based on the performance of the listed
vendors
 We are also aiming for Vendor rating based on continuous assessment in near
future.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Quality Assurance in Supplies…
 Items are procured for the Projects / stations following well defined Quality Assurance
Plans (QAP). All critical components are procured through stage wise inspection
starting from Raw material Stages upto final inspection & testing stages.
 Continuous Quality surveillance by well qualified NPCIL QA engineers
 Any critical stage of the item NPCIL QA gets involved for clearance
 We always insist on ASNT/ISNT L-II/ L-III qualified inspectors from vendor side.
The quality inspectors of Vendors are evaluated by a team of NPCIL Engineers before
they are deployed on the Job.
 Quality being ensured by fool proof systems in the shop floor / Construction sites by
the Industry alongwith NPCIL QA engineers.
 Insist Industry to build robust internal QA system and Focus on First time correct
approach.
 Digital equipment / components containing software are subjected to IV & V
(independent verification & Validation) process before the items are supplied to Site.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Quality Assurance in Supplies…Cont’d
 Any non-conformance / deviations observed are subjected to multi level
scrutiny involving the designers of the systems through Non-Conformance
requests (NCRs) or Design Concession Requests (DCRs).
 Regular Quality audit of the supplier QA systems by expert team of NPCIL
engineers comprising of QA, Design & Procurement Engineers
 Independent assessment & verification of the products supplied by
independent regulatory body under GOI, Atomic Energy Regulatory Board
(AERB), before the items are cleared for erection and also before the items
are cleared for commissioning.
 AERB also conducts Regulatory Inspection (RI) of the systems & procedures
being followed in all the functional groups like Design, Procurement, QA etc.
in HQ and also in all the functional groups of Projects Sites; report Non-
conformances and suggest improvements.
 We also have the system of Feed back from Industries / Sites/ Stations for
continual improvement of the systems/specifications/Products.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
For the Nuclear Energy to be sustainable in the
current century…..

 Nuclear Energy shall be cost competitive


 Cost effective Nuclear Power is possible only if:
 Technology become more affordable

 Projects are completed in time

 Project cost is coming down

 Capacity factor is going up

 Plant life is moving up (50+years)

 Supply chain plays a pivotal role in achieving the above


objectives.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
For the Nuclear Energy to be sustainable in the
current century…..

 So…..Let’s ponder on…


 Can we have a common vendor base for Nuclear Supply chain??

 Can we have common specifications to be given to these


Industries, so that they need not re-orient their manufacturing
facilities country specific??

 Can we ensure quality certification of the products by the


respective member country??

 Can we share the quality assurance plans (QAPs) being followed


for standard components / systems, so that we can prepare our
Industries to be ready for supplying to other member countries
also??

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)
Let’s jointly make the Nuclear Energy
sustainable in the 21st Century…

For a better tomorrow….

Thank you.

NUCLEAR POWER CORPORATION OF INDIA LIMITED


(A Government of India Enterprise)

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