Justification of gains in Infrastructure up-gradation project:

Value for Money Analysis is essentially a Cost-Benefit Analysis to ascertain net positive gain to
society as has also been clarified by European Investment Bank [Ref
:http://www.eib.org/epec/g2g/i-project-identification/12/124/]. Evaluation of Cost vis-à-vis Benefit
is essentially to be made to justify the gains in Infrastructure up-gradation project for the Industrial
Growth Centres.

Conventional Financial Profitability Analysis Models are not useful for evaluating benefits of up-
gradation work for Industrial Growth Centres as any direct revenue generation is not likely to
happen by improvement the existing facility.

However, up-gradation of infrastructure facilities and able management of the zone, in addition to
imparting facelift will also earn benefits, some of which are mentioned below:

 Hygienic working environment

 Comfortable ride
 appealing surroundings
 Safety and security
 Controlled anti social activity
 Better Medical attendance
 More availability of time and savings in expenditure due to door step infrastructure
 Efficient decision making and business communication
 Uninterrupted traffic flow and thus efficient transportation

Exhaustive schedule of benefits however is to be incorporated in the report to be submitted.

The synergy effect will result in:

 Increased Productivity
 Positive message to business community
 More investment
 Inclusion of advanced technology
 More direct & indirect employment
 Increased business turnover
 Increased contribution to domestic product
 Increased export
 Increased Tax deposits to Govt. Exchequers
 Increased occupational safety and protection of life including assets etc.

A comprehensive analysis to quantify positive gain to society for finding out the Value gained out of
investment of Public Money towards justifying the need for various development activities to be
prepared and submitted with the report.