Professional Documents
Culture Documents
6: Engineering Economics
Contents
1.0 Introduction .......................................................................................1 2.0 Schedule of Rate (SOR) & Rate Analysis ............................................1 2.1 Need for SOR...................................................................................2 2.2 Rate analysis ...................................................................................2 2.2.1 Excavation................................................................................3 2.2.2 Brick Masonry ...........................................................................3 2.2.3 Stone Masonry ..........................................................................4 2.2.4 Steel Work................................................................................5 2.2.5 Concrete Work ..........................................................................5 2.2.6. Sample Rate Analysis for Material Carriage for a Road Project .........7 2.3 Consolidated Rates and Block Cost.................................................... 15 2.3.1 Consolidated Rate for RCC Roads ............................................... 15 2.3.2 Summery of cost of road network .............................................. 16 2.3.3 Consolidated Rate for Sewerage and Storm water Drainage ........... 16 2.3.4 Block Cost for Water and Waste Water Treatment ........................ 17 2.3.5 Cost Estimate for Solid Waste Management ................................. 20 3.0 Bill of Quantity (BOQ) ..................................................................... 21 4.0 Financial Analysis of Infrastructure Projects................................... 25 4.1 Cost of Project ............................................................................... 25 4.1.1 Technical Know-how and Engineering Fees .................................. 25 4.1.2 Miscellaneous Fixed Assets........................................................ 26 4.1.3 Preliminary and Capital Issue Expenses ...................................... 26 4.1.4 Pre-operative Expenses ............................................................ 26 4.1.5 Provision of Contingencies ........................................................ 27 4.1.6 Margin Money for Working Capital .............................................. 27 4.1.7 Initial Cash Losses ................................................................... 27 4.1.8 Sample Cost Estimate for Head Works ........................................ 28 4.2 Project Cash Flow ........................................................................... 29 4.2.1 Net Present Value Method ......................................................... 30 4.2.2 Internal Rate of Return Method (IRR) ........................................ 31 4.2.3 Discount Cash Flow Method (Present Value Return on Investment Method) ......................................................................................... 34 4.2.4 Pay Back or Pay Off Period Method ............................................ 36 4.2.5 Rate of Return on Investment Method (R & I) .............................. 37 4.2.6 Profitability Index .................................................................... 38 5.0 Financial and Economic Analysis: Case of Jammu Sewerage Project 40 5.1 Cost Estimates ............................................................................... 41 5.2 Financial Analysis ........................................................................... 46 Annex I: Sample Block Cost of Material and Labour in Water Supply Projects
1.0 Introduction
All municipal engineers and managers involved in urban infrastructure projects, frequently face problems in terms of cost estimates, economic and financial analysis, rate analysis, project benefit cost analysis etc. The question is how to tackle these aspects to predict or assess cost, how to minimize the risk and impact of overspends against budgets, and how to ensure that there is an appropriate balance between technical aspects and the related costs. Therefore this module has been structured to include the following components Overview of SOR and Rate analysis Sample infrastructure project cost estimates Key concepts of project viability Project financial and economic analysis
Like all other states in the country, various state departments all use SORs for diverse developmental activities. Although, the Schedule of Rates (SOR) prepared by The Public Works Department (R&B) forms the basis for all other SORs, many of the departments and organizations have developed their own SORs, at various time intervals and for divergent needs.
Basic
Rates
of
Wastage
Machinery
materials
Conveyance
Labour Input
Rate Analysis
Sundries
CEPT, Ahmedabad
The following section include some typical samples of Rate Analysis for items such as excavation, brick masonry, stone masonry, steel work and concrete work.
2.2.1 Excavation
Rate Item Description Unit cum Excavation for foundation up to 1.5m depth including sorting out and stacking of useful materials and disposing of the excavated stuff up to 50 meter lead for Loose or soft soil (Rs.) 38.44
CEPT, Ahmedabad
L.S.
1214.51 2.00
400.79 2.00
591.79
0.50
CEPT, Ahmedabad
Description
Unit
Quantity
Rate (Rs.)
Cost of 1.00 Cum Add 1% for W.C. & O.H. Add 15% for contractor profit Cost of 1.00 Cum
CEPT, Ahmedabad
CEPT, Ahmedabad
2.2.6. Sample Rate Analysis for Material Carriage for a Road Project
Ref. to MoRTH Spec. Remarks/ Input ref.
Description
Unit
Quantity
Rate Rs
Cost Rs
Loading and Unloading of Stone Boulder/Stone aggregates/Sand/ Kanker/ Moorum. Placing tipper at loading point, loading with front end turning loader, for dumping, return trip,
cum
excluding time for haulage and return trip Unit = cum Taking output = 5.5 cum Time required for i) ii) loader hour iii) reversing, iv) unforeseen etc Total Machinery Tipper 5.5 capacity Front end-loader a) bucket b) c) capacity cum/hour Overhead charges Contractor's profit 22.00 29.71 326.77 59.41 say 59.00 @ 08 % on (a) @ 10 % on (a+b) Cost for 5.5 cum = a+b+c Rate per cum = (a+b+c)/ 5.5 Unloading will be by tipping. Loading and Unloading of Boulders by Manual 20 Min tonnes 1 @ cum 25 hour hour 0.330 0.330 231.53 601.97 76.40 198.65 P&M-048 P&M-017 Maneuvering, dumping Waiting and time, 4 Min 2 Min Positioning of tipper at Loading by front end 1 cum bucket 1 Min 13 Min loading point
Note
CEPT, Ahmedabad
Description
Unit
Quantity
Rate Rs
Cost Rs
Means Unit = cum Taking output = 5.5 cum a) Labour Mate Mazdoor for loading and unloading b) Machinery Tipper 5.5 tonne capacity c) Overhead charges @ 08 % on (a+b) d) Contractor's profit @ 10 % on (a+b+c) Cost for5.5 cum a+b+c+d Rate per cum (a+b+c+d)/5.5 Unloading will be by tipping. Loading and Unloading of Cement or Steel by Manual Means and Stacking. Unit = tonne Taking output = 10 tonnes Labour Mate Mazdoor for loading and unloading b) Machinery Truck 10 tonne capacity c) Overhead charges @ 08 % on (a+b) d) Contractor's profit = 66.99 736.84 73.68 say Cost of Haulage Excluding Loading and Unloading Haulage of materials by tipper loading, excluding cost of and unloading 74.00 @ 10 % on (a+b+c) Cost for10 tonnes a+b+c+d Rate per tonnes = (a+b+c+d)/10 a) day day 0.080 2.000 86.70 86.70 6.94 173.40 L-12 L-13 = = say 294.87 53.61 54.00
day day
0.110 0.750
86.70 86.70
9.54 65.03
L-12 L-13
hour
0.750
231.53
P&M-048
Note
hour
2.000
219.95
439.90 49.62
P&M-057
CEPT, Ahmedabad
Description
Unit
Quantity
Rate Rs
Cost Rs
stacking. Unit = t.km Taking output 10 tonnes load and lead 10 km = 100 t.km (i) Surfaced Road Speed with load : 25 km / hour. Speed while Returning empty :35 km / hour. a) Machinery. Tipper 10 tonne capacity Time Time b) c) taken taken for for onward empty hour hour 0.400 0.290 231.53 231.53 92.61 67.14 12.78 17.25 189.79 1.90 Say (ii) Unsurfaced Graveled Road Speed with load: 20 km / hour Speed a) for empty return trip :30 km / hour Machinery Tipper 10 tonnes capacity Time Time b) c) taken taken for for onward empty hour hour 0.500 0.330 231.53 231.53 115.77 76.40 15.37 20.75 228.30 P&M-048 P&M-048 haulage with load return trip Overhead charges Contractor's profit 100 t .km = @ 08 % on (a) @ 10 % on (a+b) Cost for a+b+c 1.9 P&M-048 P&M-048 haulage with load return trip. Overhead charges Contractor's profit @ 08 % on (a) @ 10 % on (a+b) cost for 100 t km = a+b+c Rate per t.km = (a+b+c)/100
CEPT, Ahmedabad
Description
Unit
Quantity
Rate Rs
Cost Rs
t.Km
= say
2.28 2.30
Kacha Track and Track in River Bed/Nallah Bed Speed with load :10 km / hour Speed a) while returning empty:15 km / hour Machinery Tipper 10 tonnes capacity Time Time b) c) taken taken for for onward empty hour hour 1.000 0.670 231.53 231.53 231.53 155.13 30.93 41.76 459.35 4.59 say Hand Broken Stone Aggregates 63 mm Nominal Size Supply of quarried stone, hand breaking into coarse aggregate 63 mm nominal size (passing 80 mm and retained on 50 mm sieve) and stacking as directed Unit = cum Taking output = 1 cum a) Labour Mate Mazdoor b) Material cum 1.100 370.00 407.00 43.38 M-002 Supply of quarried stone 150 - 200 mm size c) Overhead charges day day 0.060 1.500 86.70 86.70 5.20 130.05 L-12 L-13 4.60 P&M-048 P&M-048 haulage return trip Overhead charges Contractor's profit .km = @ 08 % on (a) @ 10 % on (a+b) Cost for 100 t a+b+c Rate per t.Km = (a+b+c)/100
CEPT, Ahmedabad
10
Description
Unit
Quantity
Rate Rs
Cost Rs
@ 08 % on (a+b) d) Contractor's profit 58.56 644.20 say Crushing of Stone Aggregates 13.2 mm Nominal Size. Crushing of stone boulders of 150 mm size in an integrated stone crushing unit of 200 tonnes per hour capacity primary crushing conveyor screens to aggregates nominal size. Unit = cum Taking Output = 600 cum at crusher location. a) Labour Mate Mazdoor Skilled Mazdoor including breaking of any oversize boulder. b) Material cum 800.000 360.00 288000.00 M-001 Stone Boulder of size 150 mm and below c) 200 Machinery Hour 6.000 13613.67 81682.02 P&M-028 TPH including and belt Integrated stone crusher of conveyor screens Front end loader 1 cum bucket capacity Tipper 5.5 cum capacity d) e) Overhead charges Contractor's profit @ 08 % on (a+b+c) 41913.92 @ 10 % on (a+b+c+d) Hour 20.000 231.53 4630.60 31047.34 P&M-048 Hour 20.000 601.97 12039.40 P&M-017 vibrating day day day 0.760 2.000 17.000 86.70 100.00 86.70 65.89 200.00 1473.90 L-12 L-14 L-13 comprising and and of units, obtain 13.2 of belt stone mm secondary vibrating 644.00 @ 10 % on (a+b+c) Rate per cum = a+b+c+d
CEPT, Ahmedabad
11
Description
Unit
Quantity
Rate Rs
Cost Rs
boulders are needed to get 600 cum of stone chips of size 13.2 mm. 2. 95 per cent of above cost will be attributed to the production of 600 cum of stone chips of 13.2 mm size and balance 5 per cent to the production of stone dust which comes out as a by-product. 3. and units. Crushing of Stone Aggregates 20 mm Nominal Size Crushing of stone boulders of 150 mm size in an integrated stone crushing unit of 200 tonnes per hour capacity primary crushing conveyor screens to aggregates nominal size. Unit = cum Taking Output = 670 cum at crusher location. a) Labour Mate Mazdoor Skilled Mazdoor including breaking of any size boulder. b) Material day day day 0.760 2.000 17.000 86.70 100.00 86.70 65.89 200.00 1473.90 L-12 L-14 L-13 comprising and and of units, obtain 20 of belt stone mm secondary vibrating The integrated includes stone crusher primary crushing
secondary
CEPT, Ahmedabad
12
Description
Unit
Quantity
Rate Rs
Cost Rs
Stone Boulder of size 150 mm and below c) 200 Machinery Integrated stone crusher of TPH including and belt conveyor screens Front end loader 1 cum bucket capacity Tipper 5.5 cum capacity d) e) Overhead charges Contractor's profit = @ 08 % on (a+b+c) vibrating
cum
800.000
360.00
288000.00
M-001
Hour
6.000
13613.67
81682.02
P&M-028
Hour Hour
20.000 20.000
601.97 231.53
P&M-017 P&M-048
(a+b+c+d+e)*0.90/670 say Note 1. 800 cum of stone boulders are needed to get 600 cum of stone chips of size 20 and 40 mm. 2. 90 per cent of above cost will be attributed to the production of 670 cum of stone aggregates of 20mm size and balance 10 per cent will be for smaller size aggregates and stone dust which comes out as a by-product. 3. and units. Crushing of Stone Aggregates 40 mm Nominal Size Crushing of stone boulders of 150 mm size in an integrated stone crushing unit of 200 tonnes per hour capacity primary comprising and of secondary The integrated includes stone crusher primary crushing 619.00
secondary
CEPT, Ahmedabad
13
Description
Unit
Quantity
Rate Rs
Cost Rs
belt stone mm
vibrating
Taking Output = 750 cum at crusher location. a) Mate Mazdoor Skilled Mazdoor b) Material cum 800.000 360.00 288000.00 M-001 Stone Boulder of size 150 mm and below c) 200 Machinery Hour 6.000 13613.67 81682.02 P&M-028 TPH including and belt Integrated stone crusher of conveyor screens Front end loader 1 cum bucket capacity Tipper 5.5 cum capacity d) e) Cost Overhead charges Contractor's profit for 750 cum = @ 08 % on (a+b+c) 41913.92 391895.11 522.53 say Note 1. 800 cum of stone boulders are needed to get 600 cum of stone chips of size 13.2 mm. 2. 85 per cent of above cost will be attributed to the production of 750 cum of stone aggregates of 40mm size and balance 15 per cent will be for smaller size aggregates and stone dust which comes out as a 523.00 @ 10 % on (a+b+c+d) (a+b+c+d+e)x0.85 Rate per cum = (a+b+c+d+e)x0.85/750 Hour 20.000 231.53 4630.60 31047.34 P&M-048 Hour 20.000 601.97 12039.40 P&M-017 vibrating Labour day day day 0.760 2.000 17.000 86.70 100.00 86.70 65.89 200.00 1473.90 L-12 L-14 L-13
CEPT, Ahmedabad
14
Description
Unit
Quantity
Rate Rs
Cost Rs
by-product.
3. and
The
integrated includes
stone
crusher units.
primary crushing
secondary
R.C.C(1:2:4) C.C(1:5:10) Sand Steel Excavation 8.2 Miscellaneous for joint etc, Footpath Pre-cast Kerbing 1 Pre-cast slab 3 Sand spreading 3
2 1 1
1 1 0.15
2 3 0.45
Rmt
(B) For 5 mt width Width (m) 5 5.6 6.2 Length (m) 1 1 1 1 Depth (m) 0.15 0.2 0.3 0.75 Qty (cum) 0.75 1.12 1.86 35 4.65 Rate (Rs.) 2500 1057 230 25 40 Total Cost (Rs.) 1875 1183.84 427.8 875 186 50 400 1200 69 6267 Rmt
R.C.C(1:2:4) C.C(1:5:10) Sand Steel Excavation 6.2 Miscellaneous for joint etc, Footpath Pre-cast Kerbing 1 Pre-cast slab 2 Sand spreading
2 1 1
1 1 0.15
2 2 0.3
(C) For 3.5 mt width Width (m) 3.75 Length (m) 1 Depth (m) 0.15 Qty (cum) 0.5625 Rate (Rs.) 2500 Total Cost (Rs.) 1406.25
R.C.C(1:2:4)
CEPT, Ahmedabad
15
C.C(1:5:10) 4.35 Sand 4.95 Steel Excavation 4.95 Miscellaneous for joint etc, Footpath Pre-cast Kerbing 1 Pre-cast slab 2 Sand spreading 2
1 1 1
1057 230 25 40
2 1 1
1 1 0.15
1 2 0.3
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs.
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs.
Cost for proposed Storm water RCC Open Drain (1m X 1m) Description Excavation (Qty = 2.3 X 1.3 X 1.0 ) CC 1:4:8 (Qty = 1.3 X 0.15 X 1.0 ) CC 1:2:4 (Qty = 3.3 X 0.15 X 1.0 )
CEPT, Ahmedabad
16
Steel (@ 1% of CC) Total Add 10% for increase in cost of 2005-2006 SOR Total For 1 km Length C (I) Cost for Open Kachcha Drain ( 0.3 m X 0.45 m ) Description Excavation (Qty = (0.3 +1.2)/2 X 0.45 X 1.0 ) Add 10% for increase in cost of 2005-2006 SOR Total For 1 km Length (II) Cost for Open Kachcha Drain (0.45 m X 0.6 m ) Description Excavation (Qty = (0.45 + 1.65)/2 X 0.6 X 1.0 ) Add 10% for increase in cost of 2005-2006 SOR Total For 1 km Length (II) Cost for Open Kachcha Drain (0.6 m X 0.75 m ) Description Excavation (Qty = (0.6 + 2.1)/2 X 0.75 X 1.0 ) Add 10% for increase in cost of 2005-2006 SOR Total For 1 km Length
38.61
kg
35
Qty 0.338
Unit cum
Rate 30
Cost (Rs.) 10 1.0125 11 11138 Cost (Rs.) 19 1.89 21 20790 Cost (Rs.) 30 3.0375 33 33413
Qty 0.63
Unit cum
Rate 30
Qty 1.013
Unit cum
Rate 30
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs.
Conventional WTP
Fixed cost up to and including 1 MLD Add for capacity above 1 MLD up to 2 MLD Cost of 2 MLD treatment plant Add for capacity above 2 MLD up to 4 MLD Cost of 4 MLD treatment plant Add for capacity above 4 MLD up to 10 MLD Cost of 10 MLD treatment plant Add for capacity above 10 MLD up to 25 MLD Cost of 25 MLD treatment plant Add for capacity beyond 25 MLD Rs.1100000 Rs.900000 Rs.2000000 Rs.825000 Rs.3650000 Rs.750000 Rs.8150000 Rs.625000 Rs.17525000 Rs.600000
CEPT, Ahmedabad
17
Chlorination Plant
Pressure feed chlorination plant incl. uniejector booster etc. Up to 500 Gms per hour capacity Up to 1000 Gms per hour capacity Up to 2000 Gms per hour capacity Rs.34000 Rs.38000 Rs.46000
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs. Slow Sand Filter: Providing & erecting slow sand filter including sedimentation tank including all civil structure and piping arrangement and filter media control unit etc. Upto 2 MLD Rs 15, 00,000 Beyond 2 MLD Rs 10, 00,000 Filter Sand: Providing filter sand and required F/S and U/C. Rs. 1000 per Cum
For Sewage treatment plant of Municipal Corporation (Capacity in MLD), Operation cost is between 1.25 to 2.0 Rs per Cu.M. SOR Rate for construction of ESR
Up to 25000 Litres Cost of 25000 litres capacity Add for capacity above 25000 up to 50000 litres Cost of 50000 capacity -Do- 50000 up to 100000capacity 10 250000 8 450000 5 Rs. Per Litre Rs Rs. Per Litre Rs Rs. Per Litre
CEPT, Ahmedabad
18
Cost of 100000 litres capacity -do - 100000 to 200000 litres capacity Cost of 200000 litres capacity - 200000 litres up to 500000 litres Cost of 500000 litres capacity -do- 500000 litres up to 1000000 litres capacity Costr of 1000000 litres capacity -do- 1000000 to 1500000 litres capacity Cost of 1500000 litres capacity Add for capacity above 1500000 capacity
Rs Rs. Per Litre Rs Rs. Per Litre Rs Rs. Per Litre Rs Rs. Per Litre Rs Rs. Per Litre
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs.
For Sewerage Network All connections are made in Man holes Flow velocity is considered as 0.9 m/sec Manhole are spaced at 30 m interval Light poles are spaced at 30 m interval Estimated cost of one manhole is (Circular type depth up to 1.5 mt) - Rs. 5900/Manhole
CEPT, Ahmedabad
19
having over all dimensions (mm) 230 top dia X 180 bottom dia X 250 Ht. Multi Bins with Closed Lid; 10 litre capacity having overall dimensions (mm) 240 top dia X 212 bottom dia X 340 Ht. Multi Bins with Closed Lid; 20 litre capacity having overall dimensions (mm) 320 top dia X 265 bottom dia X 420 Ht. Multi Bins vertical with flap Lids; 20 litre capacity having overall dimensions (mm) 325 top dia X 265 bottom dia X 480 Ht. Primary (Outdoors) Waste Collection Pole Mounted Bins; 50 litre capacity, having overall dimensions (mm) 600 W (bottom plate) X 1524 Ht. Waste Bins with holes at Top; 80 litre capacity, having overall dimensions (mm) 475to dia X 370 bottom dia X 770 Ht. Secondary (Storage) Waste Collection Supertuff Wheeled Waste Bins; 240 Litre capacity having overall dimensions (mm) 610 X 680 to X 475 X 325 bottom X 1070 Ht. 3,325/521/3,900/235/190/145/-
Secondary
Waste
Collection
Tricycles; having overall dimension (mm) of frame 1540 L X 735 W X 255 H with 8 nos. multi bins with closed lid Hand Cart; having overall dimension (mm) of frame 1540 L X 735 W X 820 H with multi bins Heavy Duty Wheel Barrow; 110 Litre
16,945/-
(Transportation)
7,570/-
5,850/-
capacity having overall dimensions (mm) 750 X 730 top X 450 X 430 bottom X 660 Ht. Door to Door collection Equipment; 500 litre capacity having overall dimensions of frame (mm) 1520 L X 1010 W X 680 Ht. 25,000/-
CEPT, Ahmedabad
20
Description Community wheeled Waste Bins; 1100 litre capacity having overall dimensions of frame (mm) 1455 X 1020 top X 1330 X 870 bottom X 1250 Ht.
Liquid Waste
Septic Tank; vertical type made from moulded polyethylene chamber, with inlet, outlet and and filter septic media filter chamber
31,200/-
having 2,000 litre capacity Moulded Nestable type of Toilet Seat, size of 900 X 900 mm Prefabricated SMC Toilet Block having 21,160/overall dimensions 3 ft. X 3 ft. X 7 ft. each module consisting of SMC wall, door, roofing and Indian Style WC and base of Polytheylene. Others Biogas Plant; having overall dimensions (mm) of 1600 dia X 1100, 0.5 Cum Volumen suitable for 01 animal Home Compositing Bin; suitable for one family ( 05 persons) for one months having overall dimensions (mm) 640 X 440 top X 515 X 325 bottom X 370 Ht. 1,170/11,550/1,560/-
**It is important to note that the cost estimates shown above are indicative. It may vary from state to state depending on the prevailing SORs.
Function of Bills
The Bills of Quantities may serve a number of functions as: A breakdown of the tendered price, with no contractual status, but providing information for the selection from tenderers; An estimate measure of the work for the tendered price, to be used to arrive at a revised contract price once the actual quantities of work carried out are measured. This is the re-measure form of contract.
CEPT, Ahmedabad
21
A schedule of rates as the contract basis for valuing variations in the work. A basis for measure of the value of work completed for interim payments A Sample Bill of Quantity for Providing, lowering, laying, jointing and testing work for collection system along with house connection system of underground sewerage project, is given below in table 3.1
Table3.1 Sample BOQs Item No. 1.0 Excavation manholes for incl. sewer All line trenches, provisions Qty Item Rate Per Amount
safety
using site rails etc. including refilling the trenches & stacking the excavated stuff up to a lead of 90mt as directed. 1.1 1.1.1 118993 UP TO 1.50mt depth In all sorts of soil and soft murrum, hard murrum, boulders, and macadam road. 1.1.2 1.2 1.2.1 6156 11855 In hard rock and soft rock 1.50mt to 3.00mt In all sorts of soil and soft murrum, hard murrum, boulders, and macadam road. 1.2.2 1.3 1.3.1 1.4 1.4.1 2.0 7274.00 205 8032 In hard rock and soft rock 3.00mt to 4.50mt In hard rock and soft rock 4.50mt to 6.00mt In hard rock and soft rock Providing C.C. bedding in 1:3:6 (M 100) using 12 to 20mm machine crushed metal incl. Consolidation curing etc. complete. (C-type bedding as per type design) 3.0 Providing, supplying, lowering, laying and jointing Stoneware pipes in C.M. 1:1 of following diameters in proper position grade and alignment as directed by Engineer-in-charge including labour, giving necessary testing etc., complete including cost of jointing materials including all the taxes, duties, freight, insurance etc. complete. 252.50 1170.00 M3 M3 85,10,580/199.50 M3 40,897/166.50 M3 13,37,328/47.50 M3 2,92,410/135.00 M3 16,00,425/39.50 M3 47,00,223/-
CEPT, Ahmedabad
22
Qty
Item
Rate
Per
Amount
For 100mm dia Stoneware pipes For 150mm dia Stoneware pipes For 200mm dia Stoneware pipes For 250mm dia Stoneware pipes For 300mm dia Stoneware pipes Providing and constructing house connection chambers as per type design in brick masonry in C.M. 1:4 and inside plastering in C.M. 1:3 necessary coping in C.C. M-200 and fixing of RCC frame and cover (But excluding supply of frame and covers) chambers over etc., house complete connection
48,86,650/66,69,000/4,484400/2,87,280/1,95,000/-
(excluding excavation) as per stipulation in the type design complete. 4.1 1126.00 House connection chamber as per type design (Depth upto 0.60 mt.) 4.2 8390.00 House connection chamber as per type design (Depth above 0.60 mt and upto 1.0 mt.) 5.0 Providing and constructing Sewer manholes, scraper manholes as per the type design in brick masonry in C.M. 1:4 and inside and outside plastering in C.M. 1:3 necessary coping in C.C. M200 fixing C.I./ reinforced plastic Steps and fixing manhole frame and covers (But excluding supply of manhole frame and covers) over manholes/ scraper manhole etc. complete, as per stipulation 5.1 in the type complete.(Excluding excavation) Manhole type "A-1" Circular type having inside diameter of 900 mm for depth upto 1.00 mt. 5.1.1 5.2 256 Manhole type "A-1" as above but upto 1.00 mt. depth. Manhole type A circular type having inside diameter of 1200mm for depth up to 1.5m depth. 5.2.1. 5.2.2 1026 103 Manhole type A as above but up to 1.0 M depth Extra depth beyond 1.0 M but up to 1.5M depth for A type manhole above 1632.00 RMT 1,68,096/2640.00 Nos. 27,08,640/1550.00 No.s 3,96,800/the design 1000.00 Nos. 83,90,000/770.00 Nos. 8.67.020/-
CEPT, Ahmedabad
23
Qty
Item
Rate
Per
Amount
Manhole type B circular type having inside diameter of minimum 1500mm and for depth from 1.5M to 4.0 M.
5.3.1.
646.00
4960.00
Nos.
32,04,160/-
5.3.2
462.00
Extra depth beyond 1.5M but up to 4.0 M depth for type B manhole above.
2604.00
RMT
12,03,048/-
5.4
Manhole type C circular type having inside diameter of minimum 1500 mm and for depth 4.0 M to 6.0M
5.00 5
Manhole type C as above but up to 4.0 M depth. Extra depth beyond 4.0 M and up to 6.0M depth for type C manhole above. Providing as constructing including vertical providing drop and arrangement of 0.6 m and more height required jointing special such as double T.Bend required Stoneware pipe fixed in M-100 C.C. at required level as type design cutting jointing and filleting as per specification etc. complete.
15456.00 4068.00
Nos. RMT
77,280/20,340/-
Vertical drop arrangement as above up to 0.6 M height. Extra over Item the No.6.1 above earth for after limits loading, pre-cast
Nos. RMT M3
72,216/56,304/15,61,263/-
additional drop beyond 0.6 M. Removing the surplus refilling the trenches as directed with in Municipal Corporation including 8.0 9515 Providing, transportation, supplying RCC
unloading, spreading etc. complete 600.00 1 Pair 57,09,000/manhole frame and covers 5 T.M.D. as per specifications 9.0 1282 Providing, supplying R.C.C. Pre-cast 690.00 One pair 8,84,580/manhole frame & covers 10 T.MD. as per specifications. 10.0 556 Providing, supplying R.C.C. Pre-cast 900.00 One pair 5,00,400/manhole frame & covers 20 T.MD. as per specifications. 11.0 11.1 49248.00 Breaking of pavement surface Conventional asphalt surface 18.00 Sq. Mt 8,86,464/-
CEPT, Ahmedabad
24
Qty
Item
Rate
Per
Amount
5130.00 7797.00
26.00 20.00
Sq. Mt Nos.
1,33,380/1,55,940/-
CEPT, Ahmedabad
25
how and engineering services for setting up the project is a component of project cost, the royalty payable annually, which is typically a percentage of sales, is an operating expense taken into account in the preparation of the projected profitability statements.
CEPT, Ahmedabad
26
Pre-operative expenses incurred up to the point of time the plant and machinery are set up may be capitalized by apportioning them to fixed assets on some acceptable basis. Pre-operative expenses incurred from the point of time the plant and machinery are set up are treated as revenue expenditure. The firm may, however, treat them as deferred revenue expenditure and write them off over a period of time.
CEPT, Ahmedabad
27
350.00 lacs 236.70 lacs 29.60 lacs 150.00 lacs 312.50 lacs
L.S.
Construction of pump house having size 37 x 20 at the rate of LS Construction of ESR having capacity 3.0 ML and stage height 20
Thus, total cost of project: Intake work Filtration, storage, distribution etc. Rs.1290.00 lacs Rs.1680.00 lacs
-------------------------------------------------------------------Total Add 5% physical contingency Total Say Rs.2970.00 lacs Rs. 149.00 lacs Rs.3119.00 lacs Rs.3120.00 lacs
CEPT, Ahmedabad
28
CEPT, Ahmedabad
29
We will show in the following the net present valued criterion is the most valid technique of evaluating an investment project. It is generally consistent with the objective of maximizing the shareholders wealth.
[Rs. 900 (PVF1,0.10) + Rs. 800 (PVF2,0.10) + Rs. 700 (PVF3,0.10) + Rs. 600 (PVF4,0.10) + Rs. 500 (PVF5,0.10)] Rs. 2,500 [Rs. 900 X 0.909 + Rs. 800 X 0.826 + Rs. 700 X 0.751 + Rs. 600 X 0.683 + Rs. 500 X 0.620] Rs. 2,500 Rs. 2,725 Rs. 2,500 + Rs. 225
CEPT, Ahmedabad
30
Project Xs present value of cash inflows (Rs. 2,725) is greater than that of cash outflow (Rs. 2,500). Thus, it generates a positive net present value (NPV = + Rs. 225). Project X adds to the wealth of owners; therefore, it should be accepted. The Formula For the net present value can be written as follows: NPV or n NPV = = [ C1 (1+ k) + C2 (1+ k)
2
C3 (1+ k)
3
Cn (1+ k)n
] - C0
t=1
Ct (1+ k)
t
C
0
Where C1, C2 represent net cash inflows in year 1,2.., k is the opportunity cost of capital, C0 is the initial cost of the investment and n is the expected life of the investment. It should be noted that the cost of capital, k is assumed to be known and is constant.
The amount which you would obtain in future (Rs. 10,800) would consist of your investment (Rs. 10,000) plus return on your investment (0.08 X Rs. 10,000): 10000 (1.08) = 10,800 or 10,000 = 10,800 (1.08)
You may observe that the rate of return of your investment (8 percent) makes the discounted (present) value of your cash inflow (Rs. 10,800) equal to your investment (Rs. 10,000). We can now develop a formula for the rate of return (r) on an investment (C0) that generates a single cash flow after one period (C1) as follows: r = C1- C0 C0 = C1 C0 1
CEPT, Ahmedabad
31
From above equation the rate of return can be defined as that rate which equates investment outlay with the present value of inflow received after one period. This also implies that the rate of return is the discount rate which makes NPV = 0. this rate may be referred to as the internal rate of return. There is no satisfactory way of defining true rate of return of a long-term asset. The internal rate of return (RR) is the best available concept; although it is a very frequently used concept in finance, yet at times it can be a misleading measure of investment worth. Internal rate of return is called so because it depends solely on the outlay and proceed associated with the investment and not on any rate determined outside the investment. It can be determined by solving the following equation for r: C1 C0 = (1+ r) n C0 = + (1+ r)2 C2 + (1+ r)3 C3 + + (1+ r)n Cn ] C
0
t=1
Ct (1+ r)t
- C0 = 0
It can be noticed that the IRR equation is the same as the one used for the NPV methods with the difference that in the NPV method the required rate of return k, is assumed to be known and the net present value is found, while in the IRR method the value of r has to be determined at which the net present value is zero.
CEPT, Ahmedabad
32
Illustration:
A Project costs Rs. 16,000 and is expected to generate cash inflows of Rs. 8,000, Rs. 7,000 and Rs. 6,000 at the end of each year for next 3 years. we know that IRR is the rate at which project will have a zero NPV. As a first step, we try (arbitrarily) a 20 percent discount rate. The projects NPV at 20 percent is: NPV = -Rs. 16,000 + Rs. 8,000 (1/1.2) + Rs. 7,000 (1/2.2) + Rs. 6,000 (1/3.2) = -Rs. 16,000 + Rs. 8,000 X 0.833 + Rs. 7,000 X 0.694 + Rs.6,000 X 0.579 = -Rs. 16,000 + Rs. 14,996 = -Rs. 1,004 A negative NPV of Rs. 1,004 at 20 percent indicates that the projects true rate of return is lower than 20 percent. Let us try 16 percent as the discount rate. At 16 percent, the projects NPV is: NPV = -Rs. 16,000 + Rs. 8,000 (1/1.16) + Rs. 7,000 (1/2.16) +Rs. 6,000 (3/3.16) = -Rs. 16,000 + Rs. 8,000 X 0.862 + Rs. 7,000 X 0.743 + Rs.6,000 X 0.641 = -Rs. 16,000 + Rs. 15,943 = -Rs. 57 Since the projects NPV is still negative at 16 percent, a rate lower than 16 percent should be tried. When we select 15 percent as the trial rate, we find that the projects NPV is Rs. 200: NPV = -Rs. 16,000 + Rs. 8,000 (1/1.15) + Rs. 7,000 (1/2.15) + Rs. 6,000 (3/3.15) = -Rs. 16,000 + Rs. 8,000 X 0.870 + Rs. 7,000 X 0.756 + Rs. 6,000 X 0.658 = -Rs. 16,000 + Rs. 16,200 = -Rs. 200 The true rate return should lie between 15 to 16 percent. We can find out a close approximation of the rate of return by the method of linear interpolation as follows:
Difference PV required PV ar lower rate, 15% PV ar higher rate, 16% r = 15% + (16% -15%) = 15% + 0.8%= 15.8% Rs. 16,000 Rs. 16,200 Rs. 15,943 200 257
CEPT, Ahmedabad
33
4.2.3 Discount Cash Flow Method (Present Value Return on Investment Method)
The pay-back period and return on investment (ROI) methods do not consider the time value of money. Projects with differing cash inflows, as follows, are treated at par although present value return is higher in the second case. Cash flows received in different years should not be treated to have a uniform value. Todays rupee is more valuable than a rupee to be received a year later. For proper and sound financial analysis cash flows should be related to time scale.
Project I 1 Year Cash inflows 2 year Cash inflows 8,000 Rs. 12,000 Rs. Project II 12,000 Rs. 8,000 Rs.
Discounting Principle:
Let us consider that Rs. 100 is invested with 15% compound interest/annum. The table shows earning. It shows that future value of Rs. 100 after 5 years is Rs. 201.14. The discounting principal views the whole exercise from the other end. It puts the thing in reverse order that Rs. 201.14 to be available at the end of 5th year is today worth Rs. 100. Therefore, the present value of the future sum of Rs. 201.14 is Rs. 100.
Year Interest Cumulative 0 100 1 15 115 2 17.25 132.25 3 19.84 152.09 4 22.81 174.9 5 26.24 201.14
Discounting the future cash flows is very important in capital expenditure appraisal. In capital investment, cash outflows take place in first year and also spread over 2 or more years but cash inflows will start generating after the project is commissioned and will continue during the lifetime of the project. To arrive at a decision whether to invest funds or not, it is necessary to make a comparison between the present value of cash outflows and cash inflows. If the present value of cash inflows is more than that of the cash outflows, at a given rate of discount, the capital expenditure proposal merits consideration and approval. The trial and error method seeks to find out that particular discount rate at which both cash outflows and inflows become equal in terms of their present values. A number of trial calculations are made to establish the exact rate of discount.
CEPT, Ahmedabad
34
Depending upon money supply, interest rate may be varying-high rate during dear money situation an low rate during easy availability of funds. The single discounting rate ignores the fluctuating trend of future interest rates.
Year 1 2 3 4 5
1 2 3 4 5 Total
1 2 3 4 5 Total 1 2 Total
Less Outflows
Net difference
For a change in rate of interest of 1! (from 16% to 17%) the change in present value is Rs. 1,656 = (60,673 59,017) The rate of interest which equalizes investment cash outflows with cash inflows is determined as:16% + {(673 X1) /1656} =16.40% So the proposal A yield a discounted or internal rate of return is 16.40%
CEPT, Ahmedabad
35
Similar for proposal B- actual rate of discount = 20% + {(879 X1) /1356} =20.6482% Thus proposal B is preferable to A as the internal rate of return is higher for B that of A.
Illustrative Example:
Project A Investment Net Cash Inflows 1 Year 2 Year 3 Year 4 Year 5 Year Pay-Back Period 5,000 7,000 8,000 5,000 5,000 3 year 20,000 Rs. Cumulative 5,000 12,000 20,000 25,000 30,000 5,000 5,000 5,000 5,000 5,000 4 year Project B 20,000 Rs. Cumulative 5,000 10,000 15,000 20,000 25,000
CEPT, Ahmedabad
36
Where
=
Illustrative Example:
Total Investment Net Cash inflows after tax during the life of the project Life of the Project Annual return Return on investment Project B is preferable to Project A Project A 1,00,000 1,00,000 10 years 10,000 10 % Project B 1,50,000 2,70,000 15 years 18,000 12%
CEPT, Ahmedabad
37
quality, the extent of its working, the state of maintenance and the manner of handling during work. For this method, usually profits (return) are calculated by conventional accounting practice of taking into account accruals. Cash flows are relevant in the context of capital investment evaluation, which consider the time pattern of earnings. Cash generation for different projects may be start at different points of time and hence, time pattern of cash generation is important and relevant. Because of these limitations, the ROI technique is not very useful to make sophisticated analysis in capital investment decisions.
PI =
C0
ILLUSTRATION
The initial cash outlay of a project is Rs. 100,000 and it can generate cash inflow of Rs.40,000, Rs.30,000, Rs.50,000 and Rs.20,000 in year 1 through 4. assume a 10 percent rate of discount. The PV of cash inflows at 10 percent discount rate is: PV = Rs. 40,000 (1/1.1) + Rs. 30,000 (1/2.1) + Rs.50,000 (1/3.1) + Rs. 20,000 (1/4.1) = Rs 40,000 X 0.909 + Rs 30,000 X 0.826 + Rs 50,000 X 0.751 + Rs. 20,000 X 0.683 NPV = Rs 112,350 Rs 100,000 = Rs 12,350
PI = Rs 1,12,350
Rs 1,00,000
= 1.1235
Acceptance Rule
Accept if PI > 1 Reject if PI < 1
CEPT, Ahmedabad
38
May accept if PI =1 When PI is greater than one, then the project will have positive net present value
Evaluation of PI Method
Like the NPV and IRR rules, PI is a conceptually sound method of appraising investment projects. It recognizes the time value of money. It is a variation of the NPV method, and requires the same computations as the NPV method. In the PI method, since the present value of cash inflows is divided by the initial cash outflow, it is a relative measure of a projects profitability.
CEPT, Ahmedabad
39
Construction of sewage treatment plant of 30 MLD STP capacity to serve Division A, Phase II; Combined sewer comprising Construction/Laying of secondary, lateral, outfall and house connection for the Division A, Phase I; Construction of sewage treatment plant of required capacity to serve Division A, Phase I; Sewage / storm drainage separation structures in Division A, Phase I, before the pumping stations or STP; Providing house connections in both Phase I and Phase II.
CEPT, Ahmedabad
40
CEPT, Ahmedabad
41
Economic Analysis 1
Main Evaluation: Table 5.2 presents the results of the main economic evaluation. The table indicates that the EIRR of the environmental sanitation component is estimated to be 32.65%. The EIRR value exceeds the economic opportunity cost of capital of 12% and all subprojects are economically viable. Avoided health care costs comprise the largest proportion of economic benefits (63%) followed by time savings in sewage disposal cost (25%) and improved property value (11%). Table 5.2: Economic Cost-Benefit Analysis for Sewerage Component, Jammu
Details Costs Capital costs Sewerage & Sanitation O&M costs Sewerage & Sanitation 251.08 859.06 Present Value (Rs. million) a/
Economic Cost: The economic costs of capital works and annual operation and maintenance are calculated from the financial cost estimates on the following basis: (i) (ii) (iii) Price contingencies are excluded but physical contingencies are included because they represent real consumption of resources; Import duties and taxes are excluded because they represent transfer payments;1 The existence of unemployment and under-employment for unskilled workers within the Indian economy means that the opportunity cost of unskilled labour can be considered to be lower than its wage rate a conversion factor of 0.75 of the market wage rate is used to estimate the shadow wage rate;1 The market wage rate for skilled labour and the acquisition cost of land are considered to represent opportunity costs, as both factors are in demand;
(iv)
All costs are valued using the domestic price numeraire, to enable an easier comparison with the information used to measure benefits (e.g. a significant component of benefit is the savings in resources, which would be used in the without project situation).
CEPT, Ahmedabad
42
Details Total costs Benefits Increased property value Avoided costs of -sewage disposal -health care -flood damage & earning lost
10.81 Total benefits Economic Return Measures Net present value (Rs. million) EIRR (%) 547.85 32.65% 1657.99
a/ In 2006 prices. Discounted to 2006 at 12% real discount rate. Sensitivity Analysis. Sensitivity analysis was undertaken in order to test the robustness of the economic results. The following changes in parameters and assumptions were analyzed: A capital cost overrun of 20 percent; Increase in O&M cost by 20 percent; Decrease in all project benefits by 20 percent; One year delay in implementation; and Worst case scenario of combined effect with cost (capital and O&M) increase by 20 percent; all benefit decrease by 20 percent and one year delay in implementation. Table 5.3 indicates that (i) all the subprojects remain economically viable in each individual sensitivity test; and (ii) when the combination of changes is tested, the verall component and the sample subproject for Jammu remain economically viable with12 percent EIRR.
Table 5.3: Sensitivity Analysis for Sewerage Component (EIRR) Details Main Evaluation (Base Case) Capital Cost Overrun Switching Value
c/ d/ b/ a/
CEPT, Ahmedabad
43
a/ 20% increase in capital cost estimates. b/ Calculated as the percentage change in a variable required for EIRR to reduce to 12%. For example the capital cost can increase by 63% or project benefits can reduce by 33% to get the minimum required level of EIRR of 12% c/ 20% increase in O&M cost. d/ 20% decrease in project benefits
O&M Cost
Financial (O&M) Details O&M Cost 4% Cost Resource Cost (Capital) Rs Million S P Factor
Rs Million 57.82 -
Foreign Cost - Base cost Local Cost - Unskilled labour - Skilled labour & Others 50% 50% 28.91 28.91 57.82 Total 57.82 0% 21.68 28.91 50.59 50.59 0.75 1.00 1.10
CEPT, Ahmedabad
44
Total
Total
Health care 18.62 74.50 130.37 167.62 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 186.24 4302.14
Total
Net Benefit
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Total NPV @12% (Rs. Million) EIRR (%)
5.06 20.24 35.41 45.53 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 1118.10
82.70 266.73 322.61 295.77 250.32 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 238.50 5988.09
(49.86) (136.00) (95.31) (4.76) 72.23 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90 187.90
859.06
859.06
251.08
251.08
186.95
415.27
1044.97
10.81
1657.99
547.85
32.65%
CEPT, Ahmedabad
45
CEPT, Ahmedabad
46
Improvements in financial management, particularly billing and collection, and Tariffs set at a level sufficient to cover O&M costs during the implementation period. Based on the above assumption of a minimum return of 4%, of Alternative non-volumetric user charges and property based taxes2 have been worked out for the sample subprojects. These alternative scenarios have been compared with the current charges, and the most reasonable structure from
For each sub project three basic charging options were considered.
User charge based recovery of O&M A combination of upfront connection deposit and a monthly user charge A combination of a water/ drainage tax as part of property tax and a monthly user charge Option 3 has been recommended as this is the most doable option. Base Cost Jammu 1 2 3 1287 1287 1287 5000 Drainage Property Tax 12500 Tax @ 8% of Connection Fees/ Tax Dom. N.Dom. Rate/ Month in Rs. Dom. 180 150 110 N.Dom. 450 375 330
CEPT, Ahmedabad
47
various alternatives is proposed. The proposed structure also incorporates reasonable revisions in user charges, fees etc. over the projects implementation period. Currently the local bodies do not levy property based taxes and the user charge is the only source for supporting operation and maintenance. In the absence of database on properties in the city, the average (Annual) rental value (ARV) of cities of comparable size and economic characteristics has been used. The user charges have been frozen at a level when the rate of return is around 4 %, and the most possible option has been selected based on the reasonableness of the levy. The assumption common for all options are: a 10% increase in capital cost; the revision of tax base and user charges at least every five years; collection performance for property tax at 80% of current demand and 50% against arrear demand, and that 30% of the household will not be part of the property tax net due to possible lower rental values. Based on the analysis as outlined above, the proposed rates are as given in table 5.4
Table 5.4 : Summary of Financial Analysis Sample Sub Projects SewerageJammu Nature of the Project Cost Recovery Cash-flow FIRR of 4% Monthly charge of and nonAt present Rs.110 for domestic consumers Rs.330 for there are no charges. Scope of Target parameter Recommendations Remarks Analysis
However, even if these charges and taxes are proposed to be implemented in 2010-11, FIRR will not be 4% unless: The collection efficiency touches over 80%; revisions undertaken every five years if not annually to charges, and increasing the consumer coverage substantially Other actions required will also be in the form of generating public awareness, enumeration of consumers, creation of a property registry, computerization etc. The proposed user charges/ taxes based on the required rate of return may appear to be not feasible at this juncture as the concept of levy of user charges is recent. GoJ&K may decide to impose lower charges and taxes initially but in such a situation incremental revisions ought to be steeper than as assumed to ensure a 4% FIRR over the life of the project. In such a situation, the practical strategy
CEPT, Ahmedabad
48
is in terms of incremental improvement in recovery of O&M cost by improving coverage of households, appropriate increases in current user charges, improving billing and collections and reduction of physical losses. The target should be to cover 100% of O&M cost by the end of the project implementation period. A proposal for feasible user charges and taxes for two sample subprojects that could be imposed to cover 50% and 60% of O& M costs in 2010-11 is presented in (Table 5.5).
Table 5.5: User Charges/ Taxes in 2010-11 under 70% Coverage of Users 50% Cost Recovery SewerageJammu Fixed monthly charge of Rs.15 for domestic consumers and Rs. 45 for non-domestic consumers. In addition drainage tax of 5 % of Annual Rental Value. 60% Cost Recovery Fixed monthly charge of Rs. 20 for domestic consumers and Rs. 60 for non-domestic consumers. In addition a drainage tax of 5 % of Annual Rental Value.
Various scenarios developed in this regard reflect the possibility of improving performance through basic management measures both on supply and revenue side.3 However, as with the improvements in electricity supply service in the State, concentrated awareness and systemic improvements to be supported by the proposed project would be necessary.
Table 5.6: Results of the analysis
Scenario Scenario 1: Improved collection against current demand sufficient to improve costs of operation and maintenance. Scenario 2: increase in connections at current rates, improved collections production efficiency increases and additional connections at current rates
With a collection efficiency of 40%, the proposed revisions in user charges will cover 48% of O&M
cost for Srinagar water supply and 83% of the O&M cost for Jammu sewerage system in 2010-11.
CEPT, Ahmedabad
49
Scenario 3: Shift to Volumetric Rates Demand equivalent to costs Variable collection levels
With a collection efficiency of 40%, the proposed revisions in user charges will
cover 48% of O&M cost for Srinagar water supply and 83% of the O&M cost for Jammu sewerage system in 2010-11. The table below presents the key assumptions for the Water Supply and Sewer Sub Projects, and the indicative rates for each option. Based on this decision the revenue enhancement plans have been developed for the city as detailed below in table 5.7 a, b & c
Table 5.7(a): Sewer Cash Flows Option 1:
Project BASIC DATA Name of the Town Population 2006 Population Growth rate % Average Houshold Size Houesholds ASSUMPTION Connections % Domestic Non Domestic User Contribution Rs Domestic Non Domestic Monthly Connection Charges Weighted rate Domestic Non Domestic Collection % Increase after % Inflation rate O&M % to base cost Ratio : Domestic/ ND Rates Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Jammu Sewerage Jammu 771000 3.676 5.2 148269 % 75 25 0 0 0 Rs/ Month Actuals 33606 11202 0.0 0.0 Base Alternative Project Details Population to be covered Proposed Connections Base Costs Project Cost Million Increase in cost % Project implementation Period Yrs Year % 1 10 2 30 3 30 4 20 5 10 1 233000 44808 1287 10 4 128.7 386.1 386.1 257.4 128.7
Rs.in Mill 248 180 6.0 450 5.0 100 % 5 Years 25 0 4 2.5 Capital Cost O&M 128.7 386.1 386.1 257.4 128.7 0 0.00 0.00 0.00 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48
Annual O&M Cost Project Cost Phasing Total Connection Fees in US$ Instalments Revenues Deposits Annual Charges 0.0 0.0 0.0 0.0 133.1 133.1 133.1 133.1 133.1 166.3 166.3 166.3 166.3 166.3 207.9 207.9 207.9 207.9 207.9 259.9 IRR NPV
51.48 million 0.0 Million 0.0 4 Status Total 0.0 0.0 0.0 0.0 133.1 133.1 133.1 133.1 133.1 166.3 166.3 166.3 166.3 166.3 207.9 207.9 207.9 207.9 207.9 259.9 9 -128.7 -386.1 -386.1 -257.4 -47.1 81.6 81.6 81.6 81.6 114.9 114.9 114.9 114.9 114.9 156.5 156.5 156.5 156.5 156.5 208.4 4.2% (17.14)
133.1 133.1 133.1 133.1 133.1 166.3 166.3 166.3 166.3 166.3 207.9 207.9 207.9 207.9 207.9 259.9
CEPT, Ahmedabad
50
O&M 0 0.00 0.00 0.00 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48
110.9 110.9 110.9 110.9 110.9 138.6 138.6 138.6 138.6 138.6 173.3 173.3 173.3 173.3 173.3 216.6
CEPT, Ahmedabad
51
Rs.in Mill 165 110 3.7 330 3.7 100 % 5 Years 25 0 4 3 Capital Cost O&M
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
0.00 0.00 0.00 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48 51.48
15.0 17.1 18.16 18.82 19.24 24.76 25.72 26.33 26.77 34.34 35.63 36.46 37.06 37.55 48.06 63.38 84.54 113.27 IRR NPV NPV
88.7 88.7 88.7 88.7 88.7 110.9 110.9 110.9 110.9 110.9 138.6 138.6 138.6 138.6 138.6 173.3
88.7 88.7 88.7 88.7 88.7 110.9 110.9 110.9 110.9 110.9 138.6 138.6 138.6 138.6 138.6 173.3
0.0 0.0 15.0 17.1 106.9 107.5 108.0 113.5 114.4 137.2 137.7 145.2 146.5 147.4 175.7 176.2 186.7 202.0 223.2 286.6 0 9% 4%
-128.7 -386.1 -371.1 -240.3 55.4 56.1 56.5 62.0 63.0 85.7 86.2 93.8 95.0 95.9 124.2 124.7 135.2 150.5 171.7 235.1 4% (372.78) 0.02
CEPT, Ahmedabad
52
Table 5.8
Jammu Connections 92128 128979
Jammu Property Tax at 5 % of ARV Collection Levels against cost 4 Options Multipliers against domestic for Commercial 3 Industrial 4 Weighted rates/ month Domestic Rs in million Non Domestic 0 Options 1 Scenario 1 Base Case Improved collection against current demand Expenditure Rs.in Million 500.0 500.0 Demand Rs.in Million 66 66 Demand as % to Expenditure 13 13 Collection % against Demand 30 50 Collection Rs.in Million 20 33 Collection as % to Exp. 4.0 6.6 Subsidy Per year Rs in million 480.1 466.8 Weighted monthly rate at Rs 60 (Domestic Rs. 30 and Non domestic at an average of Rs 180/month) Scenario 2 Increase in connections At current rates Production efficiency increases Including Additional Connections at current rates Expenditure Rs.in Million 500.0 500.0 Demand Rs.in Million 93 93 Demand as % to Expenditure 19 50 Collection Rs in Million Rs.in Million 17.2 46.4 Collection as % to Exp. 3 9 Subsidy Per year Rs in million 454 Weighted monthly rate at Rs 60 (Domestic Rs. 30 and Non domestic at an average of Rs 180/month) Scenario 3 Volumetric Rates Demand equivalent to costs Variable collection levels Collection Levels % against Cost Cost-2009 in Million MLD Water Availability Net Domestic Commercial Industrial Standpost Sub Total Demand Rs in million Collections Rs in million Collection as % to Exp. Subsidy Per year Rs in million
578.8 135.0 Rate/KL Rs, 126 11.25 4.86 33.75 0.18 45 4.85
60 578.8
80 578.8
100 578.8
Rs 250/ Month for domestic users and Non Domestic at Rs.750/ month Plus a property tax of Rs 25 per month/ household
CEPT, Ahmedabad
53
Table 5.9 :Financial Operating Plans- Jammu Municipal Corporation- Option 1 General Data Population 2001 Average Household Size Households Households < ARV of 500 % Taxable Household Taxable Commercial as % of households Total Taxable Properties Salem Average ARV, Population 6 Lakhs Property Tax Tax Rate % Purpose General Purpose Tax Water Tax Drainage Conservancy Tax Sub Total Note : The Rates as in Salem - Popn. 6 Lakhs ARV per Property- Existing Rs. Annual Growth in Assessments % ARV Revision Year ARV Revision % Impact Purpose General Purpose Tax Water Tax Drainage Conservancy Tax Sub Total
559000 5.00 30.00 111800 33540 78260 25 97825 2400 23.00 Tax Rate % 7 4 8 4 23.00 2400 1.00 2014 33.00 Annual 168 96 192 96 552 Monthly 14 8 16 8 46
CEPT, Ahmedabad
54
JAMMU MUNICIPAL CORPORATION FINANCIAL FORECAST RUN DATE Assumption Property Tax Options -1 Inclusive of Tax, 2 Do Nothing
07/17/06 1
2002-2003
2005-06
2006-07
2007-08
2008-09 Rs in Lakhs
2009-10
2010-11 Estimates
319.77 44.5 11.6 0.4 21.7 78.3 47.8 47.2 39.1 21.9 67.9 223.9 70.3 18.8 0.5 8.1 97.7 49.5 2489.1 3258.3 2212.5 199.7 39.5 20.3 62.8 51.1 127.6 8.1 113.0 107.1 2941.7 316.7
2011-12
2012-13
Property Tax Health Sanitation charges License Fee Health Cost of Forms Others Sub Total Revenue Land and Building Fee Auction of Shops Hoarding Fee Community Hall Fee Others Sub Total Builidng Section Building Regulation Fee Betterment Charges Cost of Forms Copy Fee and Other Fee Sub Total Others Grand in Aid 10% Taxes to be diverted w.e.f. 01-402k5 Total Expenditure Establishment POL Repair / Machinery Purchase Electric items for Extended Areas Sanitation Charges Nallah clearance Deployment of Casual Safaikaramcharies through N.G.O's Implementation of Municipal Social Reforms(ex gratia Others O&m Land Fill Total Status
281.74 29.79 13.74 5.36 9.73 58.62 20.26 37.07 30.5 21.96 23.1 132.89 52.25 16.22 0.65 16.54 85.66 28.72 1301.14 1607.03 1325.64 78.06 30.17 0 33 36.2 11.04 0 36.55 1550.7 56.37 18 8.35 0.25 14.57 41.17 26.04 80 24 19.59 34.51 184.14 42.63 16.34 0.24 6.19 65.4 30.97 1371.33 1693.01 1347.96 80.8 29.91 0 34.48 29.91 9.5 0 65.92 1598.5 94.53 41.7 9.03 0.26 16.23 67.22 36.26 16 32 15.97 53.22 153.45 57.66 12.9 0.5 6.3 77.36 40.91 1579.38 1918.32 1363.25 102.5 26.61 0 32.5 32.48 19.5 0 69.96 1646.8 271.52 45 10 0.5 20.2 75.7 50 15 36 16 71.8 188.8 65 15 0.5 6.5 87 44.5 2900 3296 1691 132 30 50 45 40 100 20 129.85 2237.9 1058.15 36.6 9.6 0.4 17.9 64.4 39.3 38.9 32.2 18.0 55.8 184.2 57.9 15.5 0.4 6.6 80.4 40.7 2047.7 2417.6 1820.2 135.3 32.5 16.7 51.7 42.0 105.0 6.7 93.0 2303.1 114.5 38.5 10.1 0.4 18.7 67.7 41.3 40.8 33.8 18.9 58.6 193.4 60.7 16.3 0.5 7.0 84.4 42.8 2150.1 2538.4 1911.2 142.1 34.1 17.5 54.3 44.1 110.3 7.0 97.7 2418.3 120.2 40.4 10.6 0.4 19.7 71.0 43.3 42.8 35.5 19.9 61.6 203.1 63.8 17.1 0.5 7.3 88.7 44.9 2257.6 2665.4 2006.8 159.2 35.8 18.4 57.0 46.3 115.8 7.4 102.5 2549.1 116.2 42.4 11.1 0.4 20.7 74.6 45.5 45.0 37.3 20.9 64.6 213.3 67.0 17.9 0.5 7.7 93.1 47.2 2370.5 3080.4 2107.1 178.3 37.6 19.3 59.8 48.7 121.6 7.7 107.7 2687.7 392.6
340.58 46.8 12.2 0.5 22.8 82.2 50.2 49.6 41.1 23.0 71.3 235.1 73.8 19.8 0.6 8.5 102.6 52.0 2613.5 3426.1 2323.1 223.6 41.5 21.3 66.0 53.6 134.0 8.5 118.7 228.1 3218.4 207.7
352.79 49.1 12.8 0.5 23.9 86.3 52.7 52.1 43.2 24.2 74.8 246.9 77.5 20.8 0.6 8.9 107.8 54.6 2744.2 3592.6 2439.2 250.5 43.6 22.3 69.3 56.3 140.7 8.9 124.6 364.4 3519.9 72.7
CEPT, Ahmedabad
55
JAMMU MUNICIPAL CORPORATION FINANCIAL FORECAST RUN DATE Assumption Property Tax Options -1 Inclusive of Tax, 2 Do Nothing
07/17/06 1
2002-2003
2005-06
2006-07
2007-08
2008-09 Rs in Lakhs
2009-10
2010-11 Estimates
319.77 44.5 11.6 0.4 21.7 78.3 47.8 47.2 39.1 21.9 67.9 223.9 70.3 18.8 0.5 8.1 97.7 49.5 2489.1 3258.3 2212.5 199.7 39.5 20.3 62.8 51.1 127.6 8.1 113.0 107.1 2941.7 316.7
2011-12
2012-13
Property Tax Health Sanitation charges License Fee Health Cost of Forms Others Sub Total Revenue Land and Building Fee Auction of Shops Hoarding Fee Community Hall Fee Others Sub Total Builidng Section Building Regulation Fee Betterment Charges Cost of Forms Copy Fee and Other Fee Sub Total Others Grand in Aid 10% Taxes to be diverted w.e.f. 01-402k5 Total Expenditure Establishment POL Repair / Machinery Purchase Electric items for Extended Areas Sanitation Charges Nallah clearance Deployment of Casual Safaikaramcharies through N.G.O's Implementation of Municipal Social Reforms(ex gratia Others O&m Land Fill Total Status
281.74 29.79 13.74 5.36 9.73 58.62 20.26 37.07 30.5 21.96 23.1 132.89 52.25 16.22 0.65 16.54 85.66 28.72 1301.14 1607.03 1325.64 78.06 30.17 0 33 36.2 11.04 0 36.55 1550.7 56.37 18 8.35 0.25 14.57 41.17 26.04 80 24 19.59 34.51 184.14 42.63 16.34 0.24 6.19 65.4 30.97 1371.33 1693.01 1347.96 80.8 29.91 0 34.48 29.91 9.5 0 65.92 1598.5 94.53 41.7 9.03 0.26 16.23 67.22 36.26 16 32 15.97 53.22 153.45 57.66 12.9 0.5 6.3 77.36 40.91 1579.38 1918.32 1363.25 102.5 26.61 0 32.5 32.48 19.5 0 69.96 1646.8 271.52 45 10 0.5 20.2 75.7 50 15 36 16 71.8 188.8 65 15 0.5 6.5 87 44.5 2900 3296 1691 132 30 50 45 40 100 20 129.85 2237.9 1058.15 36.6 9.6 0.4 17.9 64.4 39.3 38.9 32.2 18.0 55.8 184.2 57.9 15.5 0.4 6.6 80.4 40.7 2047.7 2417.6 1820.2 135.3 32.5 16.7 51.7 42.0 105.0 6.7 93.0 2303.1 114.5 38.5 10.1 0.4 18.7 67.7 41.3 40.8 33.8 18.9 58.6 193.4 60.7 16.3 0.5 7.0 84.4 42.8 2150.1 2538.4 1911.2 142.1 34.1 17.5 54.3 44.1 110.3 7.0 97.7 2418.3 120.2 40.4 10.6 0.4 19.7 71.0 43.3 42.8 35.5 19.9 61.6 203.1 63.8 17.1 0.5 7.3 88.7 44.9 2257.6 2665.4 2006.8 159.2 35.8 18.4 57.0 46.3 115.8 7.4 102.5 2549.1 116.2 42.4 11.1 0.4 20.7 74.6 45.5 45.0 37.3 20.9 64.6 213.3 67.0 17.9 0.5 7.7 93.1 47.2 2370.5 3080.4 2107.1 178.3 37.6 19.3 59.8 48.7 121.6 7.7 107.7 2687.7 392.6
340.58 46.8 12.2 0.5 22.8 82.2 50.2 49.6 41.1 23.0 71.3 235.1 73.8 19.8 0.6 8.5 102.6 52.0 2613.5 3426.1 2323.1 223.6 41.5 21.3 66.0 53.6 134.0 8.5 118.7 228.1 3218.4 207.7
352.79 49.1 12.8 0.5 23.9 86.3 52.7 52.1 43.2 24.2 74.8 246.9 77.5 20.8 0.6 8.9 107.8 54.6 2744.2 3592.6 2439.2 250.5 43.6 22.3 69.3 56.3 140.7 8.9 124.6 364.4 3519.9 72.7
CEPT, Ahmedabad
56
JAMMU MUNICIPAL CORPORATION FINANCIAL FORECAST RUN DATE Assumption Property Tax Options -1 Inclusive of Tax, 2 Do Nothing
07/17/06 2
2002-2003
2005-06
2006-07
2007-08
2008-09 Rs in Lakhs
2009-10
2010-11 Estimates
0.00 44.5 11.6 0.4 21.7 78.3 47.8 47.2 39.1 21.9 67.9 223.9 70.3 18.8 0.5 8.1 97.7 49.5 2489.1 2938.6 2212.5 199.7 39.5 20.3 62.8 51.1 127.6 8.1 113.0 107.1 2941.7 -3.1
2011-12
2012-13
Property Tax Health Sanitation charges License Fee Health Cost of Forms Others Sub Total Revenue Land and Building Fee Auction of Shops Hoarding Fee Community Hall Fee Others Sub Total Builidng Section Building Regulation Fee Betterment Charges Cost of Forms Copy Fee and Other Fee Sub Total Others Grand in Aid 10% Taxes to be diverted w.e.f. 01-402k5 Total Expenditure Establishment POL Repair / Machinery Purchase Electric items for Extended Areas Sanitation Charges Nallah clearance Deployment of Casual Safaikaramcharies through N.G.O's Implementation of Municipal Social Reforms(ex gratia Others O&m Land Fill Total Status
0.00 29.79 13.74 5.36 9.73 58.62 20.26 37.07 30.5 21.96 23.1 132.89 52.25 16.22 0.65 16.54 85.66 28.72 1301.14 1607.03 1325.64 78.06 30.17 0 33 36.2 11.04 0 36.55 1550.7 56.37 18 8.35 0.25 14.57 41.17 26.04 80 24 19.59 34.51 184.14 42.63 16.34 0.24 6.19 65.4 30.97 1371.33 1693.01 1347.96 80.8 29.91 0 34.48 29.91 9.5 0 65.92 1598.5 94.53 41.7 9.03 0.26 16.23 67.22 36.26 16 32 15.97 53.22 153.45 57.66 12.9 0.5 6.3 77.36 40.91 1579.38 1918.32 1363.25 102.5 26.61 0 32.5 32.48 19.5 0 69.96 1646.8 271.52 45 10 0.5 20.2 75.7 50 15 36 16 71.8 188.8 65 15 0.5 6.5 87 44.5 2900 3296 1691 132 30 50 45 40 100 20 129.85 2237.9 1058.15 36.6 9.6 0.4 17.9 64.4 39.3 38.9 32.2 18.0 55.8 184.2 57.9 15.5 0.4 6.6 80.4 40.7 2047.7 2417.6 1820.2 135.3 32.5 16.7 51.7 42.0 105.0 6.7 93.0 2303.1 114.5 38.5 10.1 0.4 18.7 67.7 41.3 40.8 33.8 18.9 58.6 193.4 60.7 16.3 0.5 7.0 84.4 42.8 2150.1 2538.4 1911.2 142.1 34.1 17.5 54.3 44.1 110.3 7.0 97.7 2418.3 120.2 40.4 10.6 0.4 19.7 71.0 43.3 42.8 35.5 19.9 61.6 203.1 63.8 17.1 0.5 7.3 88.7 44.9 2257.6 2665.4 2006.8 159.2 35.8 18.4 57.0 46.3 115.8 7.4 102.5 2549.1 116.2 42.4 11.1 0.4 20.7 74.6 45.5 45.0 37.3 20.9 64.6 213.3 67.0 17.9 0.5 7.7 93.1 47.2 2370.5 2798.6 2107.1 178.3 37.6 19.3 59.8 48.7 121.6 7.7 107.7 2687.7 110.9
0.00 46.8 12.2 0.5 22.8 82.2 50.2 49.6 41.1 23.0 71.3 235.1 73.8 19.8 0.6 8.5 102.6 52.0 2613.5 3085.5 2323.1 223.6 41.5 21.3 66.0 53.6 134.0 8.5 118.7 228.1 3218.4 -132.9
0.00 49.1 12.8 0.5 23.9 86.3 52.7 52.1 43.2 24.2 74.8 246.9 77.5 20.8 0.6 8.9 107.8 54.6 2744.2 3239.8 2439.2 250.5 43.6 22.3 69.3 56.3 140.7 8.9 124.6 364.4 3519.9 -280.1
CEPT, Ahmedabad
57
Capital PLAN Contribution from other Schemes Capital City Development Programme National Slum Development Programme E.I.U.S. Plan Distt.(Additionality) Low Cost Sanitation URIF I.D.M.T Consituency Development Funds 11th Finance Commission PWD/T&T Road Cuttings Total of Part-I PART-III Receipts from other organisation(Election) etc. Receipts from Relief Receipts from UEED Total of Part III Part IV (remittences) Total Capital Expenses Construction of Building Block-B for Mayor & Dy.Mayor,Councillors Plan Expenditures Total Status capital Account Overall Status
150 40 2.5 103.2 8 0 0 4 0 42.95 350.65 18.15 20 5 43.15 0 393.8 787.6 65.3 340.65 405.95 -12.15 44.22
125 90 30 100 4.5 0 0 7.46 262.5 60.86 680.32 47.1 20 0 67.1 0 747.42 1494.8 70.5 578.7 649.2 98.22 192.75
633.7 135 0 0 4.5 65 0 26.32 0 12.8 877.32 2 25 10.6 37.6 68.83 983.75 1967.5 73.14 812 885.14 98.61 370.13
240 160 50 100 50 100 100 50 47.5 15 912.5 3 25 0 28 115 1055.5 2111.0 50 179.45 229.45 826.05 1884.2
349.5 134.8 28.0 70.0 20.7 57.8 35.0 29.3 108.5 31.0 864.5 18.2 24.5 3.7 46.4 64.3 114.5 1089.8 67.8 549.6 617.3 472.5 587.0
367.0 141.5 29.4 73.5 21.7 60.6 36.8 30.8 113.9 32.6 907.8 19.1 25.7 3.9 48.8 86.9 139.5 1182.9 71.2 577.0 648.2 534.7 654.9
385.4 148.6 30.9 77.2 22.8 63.7 38.6 32.3 119.6 34.2 953.2 20.1 27.0 4.1 51.2 93.2 148.5 1246.0 74.7 605.9 680.6 565.4 681.6
404.6 156.0 32.4 81.0 23.9 66.9 40.5 33.9 125.6 35.9 1000.8 21.1 28.4 4.3 53.8 85.5 143.6 1283.7 78.5 636.2 714.6 569.1 680.0
424.9 163.8 34.0 85.1 25.1 70.2 42.5 35.6 131.9 37.7 1050.9 22.2 29.8 4.5 56.5 92.9 153.9 1354.2 82.4 668.0 750.4 603.8 600.7
446.1 172.0 35.7 89.3 26.4 73.7 44.7 37.4 138.5 39.6 1103.4 23.3 31.3 4.7 59.3 95.1 159.1 1416.8 86.5 701.4 787.9 629.0 496.1
468.4 180.6 37.5 93.8 27.7 77.4 46.9 39.3 145.4 41.6 1158.6 24.4 32.8 5.0 62.2 95.7 163.0 1479.5 90.8 736.5 827.3 652.2 372.1
Please refer to DPR case study of road projects given in CD, for financial and economic analysis of road projects.
CEPT, Ahmedabad
58
References:
Pandey, I. M, (2000), Financial Management, Eighth Edition, Vikash Publishing House Private Limited, New Delhi Agarwal Prakashan, (1999), Engineering Management-II, Shivaji University, Agarwal Prakashan, Kolhapur, Maharashtra Mik Green, KV Dinesh, K Mukundan, M.Bhoominathan, ( ) Jammu Sewer: Case Study, Based on sub project prepared for ABDs and J&KUIDP project ADB, (1999), Handbook for The Economic Analysis of Water Supply Projects, Asian Development Bank, http://www.adb.org/documents/handbooks/water_supply_projects/default.asp A
59
Annex : I
Sample Block Cost of Material and Labour in Water Supply Projects
1. D. I. PIPE K-9 (With Excise duty)
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Size 100 150 200 250 300 350 400 450 500 600 700 750 800 900 1000 mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm Unit RMT " " " " " " " " " " " " " " Material Rate (Rs) 694.00 1049.00 1341.00 1757.00 2226.00 2775.00 3350.00 4011.00 4666.00 6151.00 7975.00 8947.00 9868.00 12045.00 14262.00 L,L & J* of Labour Rate (Rs.) 13.00 20.00 28.00 34.00 40.00 53.00 61.00 73.00 88.00 109.00 136.00 149.00 163.00 193.00 226.00
CEPT, Ahmedabad
60
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Size 80 100 125 150 200 250 300 350 400 450 500 600 700 750 800 900 1000 mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm mm
Unit RMT " " " " " " " " " " " " " " " "
Material Rate (Rs) 616.00 746.00 935.00 1123.00 1639.00 2209.00 2849.00 3589.00 4369.00 5291.00 6275.00 8282.00 10960.00 12275.00 13741.00 16746.00 20118.00
L,L & J* of Labour Rate (Rs.) 12.00 13.00 18.00 20.00 28.00 34.00 40.00 53.00 61.00 73.00 88.00 109.00 136.00 149.00 163.00 193.00 226.00
CEPT, Ahmedabad
61
Sr. No. 17 18 19 20 21
Size 965.0 965.0 1016.0 1016.0 1016.0 8 mm 9 mm 7 mm 8 mm 9 mm " " " " "
Unit
L,L & J* of Labour Rate (Rs.) 370 424 389 389 446
(B) Pipe with outside tape coating & inside cement mortar lining or epoxy coating (NEW ITEM) (With Excise Duty): Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 Size 406.4 406.4 406.4 457.0 457.0 457.0 508.0 508.0 508.0 559.0 559.0 559.0 5 mm 6 mm 7 mm 5 mm 6 mm 7 mm 5 mm 6 mm 7 mm 5 mm 6 mm 7 mm Unit " " " " " " " " " " " " Material Rate (Rs) 2554 2977 3399 2875 3354 3830 3200 3733 4264 3487 4067 4645 L,L & J* of Labour Rate (Rs.) 154 154 154 175 175 175 192 192 192 214 214 214
4. R. C. C. PIPE
Class NP2 Test Pressure 0.7 Kg/sq. cm Sr. No. Size Unit Material Rate (Rs) 1 2 3 4 5 6 7 8 9 10 11 12 80 100 150 200 225 250 300 350 400 450 500 600 mm mm mm mm mm mm mm mm mm mm mm mm RMT " " " " " " " " " " " 100 124 133 148 206 243 284 333 396 535 Labour Rate (Rs.) 16 21 29 42 57 64 66 86 107 110 114 118 108 156 176 193 296 501 559 620 709 991 Material Rate (Rs) Labour (Rs.) 16 21 29 42 57 64 66 86 107 110 114 118
Class NP3
CEPT, Ahmedabad
62
Class NP2 Test Pressure 0.7 Kg/sq. cm Sr. No. Size Unit Material Rate (Rs) 13 14 15 16 17 18 19 20 21 22 700 750 800 900 1000 1100 1200 1400 1600 1800 mm mm mm mm mm mm mm mm mm mm " " " " " " " " " " 699 788 874 1055 1268 1501 1774 2280 2813 3547 Labour Rate (Rs.) 133 144 155 219 241 227 245 267 289 312
Class NP3 Material Rate (Rs) 1248 1484 1641 1985 2437 2839 3329 4717 6007 7845
Labour (Rs.) 133 144 155 219 241 227 245 267 289 312
5. P. V. C. Pipes:
A) Test Pressure 4 Kg/cm2. -With Excise Duty Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Size 63 75 90 110 125 140 160 180 200 225 250 280 315 mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia Unit RMT " " " " " " " " " " " " Material Rate (Rs) 32 45 63 90 117 146 191 244 294 375 453 574 726 L,L & J of Labour Rate (Rs.) 2.25 3.00 3.50 4.00 4.50 6.50 7.00 8.00 9.00 10.00 12.40 14.10 15.80
CEPT, Ahmedabad
63
Sr. No. 7 8 9 10 11 12 13
Size 160 180 200 225 250 280 315 mm dia mm dia mm dia mm dia mm dia mm dia mm dia
Rate
L,L & J of Labour Rate (Rs.) 7.00 8.00 9.00 10.00 12.40 14.10 15.80
6. H.D.P.E. Pipes
PE-80 Basic Rate Rs.53730 per MT - 10.0 Kg/cm2 Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Size 50 63 75 90 110 125 140 160 180 200 225 250 280 315 355 400 450 500 560 630 mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia mm dia Unit RMT " " " " " " " " " " " " " " " " " " " Material Rate (Rs) 61 97 137 165 290 376 471 614 776 957 1211 1494 1872 2369 3005 3894 4933 6083 7632 9643 L,L & J of Labour Rate (Rs.) 3 4 5 5 7 29 33 37 42 46 52 58 65 73 82 92 104 115 138 145
It is important to note that the block costs given above may vary from state to state depending upon prevailing SOR rates.
CEPT, Ahmedabad
64