Case study · Techno-Economic Viability Studies

TEV study for a proposed steel rolling mill in Marathwada

A public-sector bank's industrial-finance branch asked for a techno-economic viability study of a greenfield steel rolling mill near Paithan, reported in under two weeks; later the same year we monitored a metal-casting project in Raigad for another bank.

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Client
A steel producer
Service
Techno-Economic Viability study; Lender's Independent Engineer on a second project
Sector
Steel and metal processing
Asset
Greenfield steel rolling mill (TEV); metal-casting plant expansion (LIE)
Location
Paithan taluka, Chhatrapati Sambhajinagar district; Mangaon, Raigad district — Maharashtra
Appointed by
Public-sector banks — an industrial-finance branch and a mid-corporate branch
Period
TEV March to April 2025; LIE August to October 2025
Scale
Term loan appraised above Rs 200 crore (rolling mill); project cost above Rs 150 crore (casting plant)

01 · The assignment

What was asked

A greenfield rolling mill is a capital-intensive bet on steel demand in its catchment: the reheating furnace, roughing and finishing stands, cooling bed and handling equipment are bought for a product mix that must sell at a margin over billet prices for the life of the loan.

The industrial-finance branch of a public-sector bank asked us for a techno-economic viability study of such a mill proposed on agricultural land near Paithan in Chhatrapati Sambhajinagar district, and needed it inside the bank's appraisal window.

02 · What we did

How the work ran

01Technical: the proposed mill configuration and rated capacity, the equipment list and suppliers, power and water requirements, the site's land conversion and approvals, and the construction and commissioning schedule.
02Market: billet supply and finished-product demand in the mill's catchment, the price spread the project needs, and the capacity already in the region.
03Financial: the project cost and means of finance, operating assumptions, and viability under the bank's base case and sensitivity cases — reported with our observations and the risks the bank should price or mitigate.
04Separately, in August 2025 another public-sector bank appointed us Lender's Independent Engineer on a metal-casting plant expansion at Mangaon in Raigad district, completed in October 2025.

03 · Technical considerations

What mattered for this asset

Rolling-mill economics hinge on yield and energy: the furnace fuel, power tariff and scale loss per tonne decide whether the spread over billets covers conversion cost. The TEV tests these inputs against comparable mills rather than the promoter's estimate alone.

For a greenfield site the land status is itself a viability item — conversion to industrial use, access for heavy transport and a power connection of the right capacity have lead times that can move the commissioning date.

Casting plants are monitored differently from mills: progress is measured by furnaces, moulding lines and finishing equipment commissioned, and by the approvals that let the plant ship to its customers.

04 · Outcome

What the record shows

The TEV report was delivered on 10 April 2025, thirteen days after the assignment, inside the bank's appraisal window.

The casting-plant LIE mandate was completed in October 2025. Both are recorded in the assignment registers we filed with the banks in 2026.

Client: a steel producer (not named). Dates and scope are as recorded in our assignment registers; amounts are rounded bands and lender branches are not identified.

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