Consumption of steam Sample Clauses

Consumption of steam in excess of design standards in NCU Four different streams of steam namely Super High Pressure (SHP), High pressure (HP), Medium Pressure (MP) and Low Pressure (LP) are required in NCU. All four streams are generated in Captive Power Plant (CPP). In addition to this, SHP steam is generated during cracking process within NCU which is consumed internally by NCU. Therefore, SHP steam from CPP is required in NCU only during the start up of operations. It was noticed that steam consumption by downstream units was within the prescribed limit during optimum operational activities. Review of data in respect of steam consumed in NCU (generated by CPP), however, revealed that there was excess consumption of steam over and above the design standard as indicated in Annexure-IX As against the design consumption standard of 85 MT/hr, the average steam consumption for the period 1 Specific consumption prior to 2012-13 has not been considered being the stabilization period. 2012-13 to 2014-15 was 191 MT/hr. Review of 'Management Information System report for Energy Conservation Meeting and Annual Operation Report ' revealed that NCU has been continuously consuming SHP steam from CPP in addition to HP, MP and LP. This has resulted in excess consumption of steam to the extent of 106 MT/hr with resultant increase in cost of production of polymers. Management stated (October 2015) that out of 106 MT/hr. steam consumed in excess of design standard, 92 MT/hr. was due to lower severity operations, operational reasons, decoking requirement etc. Reply needs to be viewed against the fact that no specific reason was attributed by the Management for excess consumption of steam to the extent of 14 MT/hr. Increase in cost of production during the period 2012-13 to 2014-15 on account of this excess consumption was about ` 138.85 crore. Further, no acceptable variation level in respect of excess consumption of steam due to lower severity conditions, decoking requirement and operational reasons was specified by the Management in absence of which financial impact on account of excess consumption due to these reasons could not be worked out by Audit. Thus, PNCP is required to limit consumption of steam within the design standard to reduce the production cost.
Sample 1
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