Housing DPR Report Final - 2022 Studio

‘HIRA MILL KI CHAWL’
SLUM REDEVELOPMENT PROJECT,

UJJAIN
DETAILED PROJECT REPORT
Subject: Projectisation of Urban Development
Submitted by:
SHRIYA 2019BPLN001
SAVANI 2019BPLN005

YASH 2019BPLN008
UPASANA 2019BPLN013

RUCHA 2019BPLN020

SAMRIDHA 2019BPLN033
SECTOR: HOUSING B.PLAN | SEM VII

Table of Contents
01 — Introduction
02 — Sector Background
03 — Context & Project Rationale
04 — Project Concept & Scope
Scenario 1
05 — Project Calculations
06 — Project Cost
07 — Project Benefits
08 — Benefit Cost Analysis
Scenario 2
09 — Project Calculations
10 — Project Cost
11 — Project Benefits
12 — Benefit Cost Analysis
13 — Project Institutional Framework
14 — Appraisal & Conclusion
References
Annexures
List of Tables
Table 4.1: FAR Distribution Calculations
Table 4.2: Built up Calculations of PMAY Component
Table 4.3: Scenario 1: Component wise Built up and Capital Cost
Table 5.1: Built up Calculations of MIG Housing Component
Table 5.2: Built up Calculations of Plotted Housing
Table 5.3: Built up Calculations of Apartmental Housing
Table 5.4: Area Calculations of Convention and Skill Development Centre
Table 5.5: Built up Calculations of Convention and Skill Development Centre
Table 6.1 (a): PMAY Component: Abstract for Cost estimates (Building Works)
Table 6.1 (b): PMAY Component: Abstract for Cost estimates
Table 6.2. MIG Housing Component: Abstract for Cost estimates
Table 6.3: MIG Housing Component: Construction and Cost Phasing
Table 6.4. Hotel Component: Abstract for Cost estimates
Table 6.5. Hotel Component: Abstract for Operations and Maintenance
Table 6.6 (a): Convention Centre : Abstract for Cost estimates
Table 6.6(b): Skill Development Component: Abstract for Cost estimates
Table 6.7: Total Project Cost for Convention centre & Skill Development centre
Table 6.8.(a) Convention Centre Component: Abstract for Operations & Maintenance
Table 6.8.(a) Commercial Centre Component: Abstract for Operations & Maintenance
Table 6.8.(a) Guest room Component: Abstract for Operations & Maintenance
Table 6.8.(b) Skill Development Component: Abstract for Operations & Maintenance
Table 6.9 Skill Dev. & Convention Centre Abstract for Operations & Maintenance
Table 7.1: PMAY Sale Proceedings and Grants Phasing
Table 7.2: Sale Phasing MIG Housing
Table 7.3: Hotel Components Sale Proceedings
Table 7.4.: Revenue from Convention Centre
Table 7.5 Revenue from Skill Development Centre
Table 7.6: Total Revenue from all components of Skill Development and Convention Centre
Table 8.1. Phasing of Project Construction
Table 8.2. Scenario 1: Phasing of Project Cost (Capex, Opex, Site Dev. and Transit Accommodation
Table 8.3: Scenario 1: Phasing of Sale Proceedings, Grants and Revenue
Table 9.1. Scenario 2: Built up Calculations of Plotted Housing
Table 9.2. Scenario 2 : Built up Calculations of Apartmental Housing
Table 9.4 : Scenario 2 : Built up Calculations of Convention and Skill Development Centre
Table 10.1 : Scenario 2 : MIG Housing Component: Construction and Cost Phasing
Table 10.2 : Scenario 2 : Hotel Component: Abstract for Cost estimates
Table 10.3 : Scenario 2 : Hotel Component: Abstract for Operations and Maintenance
Table 10.4 : Scenario 2 : Convention Centre and Skill Development Centre Component: Cost Estimation
Table 10.5 (b): Scenario 2 : Skill Development Component: Abstract for Cost estimates
Table 10.6: Scenario 2 : Total Project Cost for Convention centre & Skill Development centre
Table 10.7.(a): Scenario 2: Convention Centre: Abstract for Operations & Maintenance
Table 10.7.(b): Scenario 2: Commercial centre: Abstract for Operations & Maintenance
Table 10.7.(c): Scenario 2: : Guest rooms Abstract for Operations & Maintenance
Table 10.7.(b): Scenario 2: Skill Development: Abstract for Operations & Maintenance
Table 10.8: Scenario 2 Skill Dev. & Convention Centre Abstract for O & M
Table 11.1 : Scenario 2 : Hotel Component: Sale Proceedings
Table 11.2 : Scenario 2 : Hotel Component: Revenue Generation
Table 11.3 : Scenario 2 : Revenue from Skill Development Centre
Table 11.4 : Scenario 2 : Revenue from Convention Centre
Table 11.5 : Scenario 2 : Total Revenue from all components of Skill Development and Convention Centre
Table 12.1 : Scenario 2: Phasing of Project Cost (Capex, Opex, Site Dev. and Transit Accommodation)
Table 12.2 : Scenario 2: Phasing of Sale Proceedings, Grants and Revenue
Table 12.3 : Phasing of Sale Proceedings, Grants and Revenue
List of Figures
Figure 1.1. Methodology
Figure 2.1: Development Pattern Duality in Ujjain
Figure 2.2: Land Values from CBD in Ujjain
Figure 2.3: Slums in Ujjain
Figure 2.4: Location of Hira Mill ki Chal
Figure 2.5: Site Surrounding Hira Mill ki Chal
Figure 2.6: Evolution of Hira Mill Area over years
Figure 3.1: RERA projects in Ujjain
Figure 3.2: Upcoming housing typologies in Ujjain
Figure 3.3: Percentage of preferred housing typologies in Ujjain
Figure 3.4: Percentage of people's willingness to stay in apartments
Figure 3.5: Percentage of self-owned houses of different income groups
Figure 3.6: Percentage of people living in plotted housing at different income levels
Figure 3.7: Percentage of people living in apartments at different income levels
Figure 3.8: Development around Hira Mill
Figure 3.9: Existing Built use (Slum and surrounding areas)
Figure 3.10: Wells and Hand pump as sources of water
Figure 3.11. Economic Activities in the Slum
Figure 3.12: Community spaces in the Slum
Figure 3.13: Preferred Housing typology (Slum Dwellers)
Figure 3.14: Housing Condition in the slum
Figure 3.15: Zoning of Hira Mill ki Chawl (Based on Ownership)
Figure 3.16: Mill Worker Quarters
Figure 3.17: Unauthorized Dwellings
Figure 4.1: Component wise Division of Study Area
Figure 4.4: In-Situ Slum Redevelopment: Rationale
Figure 4.3 : Bhubaneshwar Mass Affordable Housing Project
Figure 4.4: Shukhobrishti Affordable Housing Project
Figure 4.5: Housing clusters of Belapur Housing
Figure 4.6: Proposed Housing layout
Figure 5.2: Proposed Housing Layout
Figure 5.3: Proposed Apartment Layout
Figure 5.4: Proposed Site Layout for Economy Hotel
Figure 5.5: Proposed Site layout - Convention and Skill Development Centre
1. Introduction
This exercise is carried out to develop a Housing project in the city of Ujjain under the
Pradhan Mantri Awas Yojana (PMAY)- Housing for all Scheme, which was launched by
Government of India to address the housing requirements of urban poor.
The Aim of the exervcise is "To redevelop the existing slum and leverage the locked
potential of the land in the Hira Mill Area of Ujjain."
Three objectives have been identified in order to achieve the aim:

1. To analyse the present housing scenario and demand in the study area.
2. To enhance the living condition of the inhabitants of Hira Mill ki Chawl.
3. To identify and develop potential cross subsidization projects suitable for PMAY
implementation in Ujjain
Methodology:
The methodology followed primarily consist of sector analysis, demand assessment and
formulation of proposals as per requirement. It has been shown in figure 1.1
Figure 1.1. Methodology
The limitations faced include the following:

The existing scenario of slums in the city lacks adequate documentation.
Some parts of the site were inaccessible due to marshy land and inappropriate crowd.
Limited time availability for carrying out primary survey.
1
2. Sector Background
2.1. Housing in Ujjain
TThe total population of the city is 5,15,216 as computed in census 2011. According to the
2011 Census, there were 1,02,401 households in the Ujjain municipal area. The number of
households in the urban area increased from 1,02,401 (Census 2011) to 1,19,460 (Smart city
report of 2020). The average household density per hectare estimated to be approximately
50 people.
The city's core area has a high household density, a
high FAR, and a congested aspect to it. As the city is
growing, new extension areas area having low housing
densities and more of a planned development.
Owned Permanent
70% 81%
Rented Semi-Permanent
26% 13%
Other Other
Figure 2.1: Development Pattern
4% 6% Duality in Ujjain
Land Values:
The city's core has a diverse set of
characteristics. There are HIG income
groups, EWS groups, heritage sites, and
so on in the area. The city's core has
largely high land values, indicating a HIG
society. The LIG society is primarily
concentrated in the city's northwest,
while the MIG classes are primarily
concentrated in the city's south. New
residential projects are being built in the
area's south and southwest corners, Figure 2.2: Land Values from CBD in Ujjain
which is causing prices to rise.
2
2.2. Informal Settlements in Ujjain:
According to UMC data 2021, there are total 159 slums with 100 notified and 59 non-notified
slums spread over 5.8 sq.km area in total. Total population of slums is 1,83,885 constituting
around 30% of city’s total population as shown in map 2.1.
No of Notified Slums : 159

Maximum no of Slums in ward no
10, 30, 31, 32, 34
Total area under Slums : 5.83 sq.km
Population Density : 315 pph
Figure 2.3: Slums in Ujjain
There are majorly 3 to 4 era of emergence of slums. Firstly, pre 1891 where most of the
people started settling around Mahakal temple and hence engaged into religious activities.
1891 was revolutionary since the first textile mill was established in Ujjain called Nazar Ali ki
Mill similarly Hira mill and Vinod mill were established in eastern side of city during period
of 1916 to 41. After 1941 to early 2000s due to closure textile mills in eastern side city slum
dwellers started residing in peripheral areas of city and majorly engaged in casual labor
now a days they also work as construction laborers in periphery area.
3
2.3. Housing: Institutional Framework
Following is the existing Institutional Set-up pertaining to Slum Improvement Projects. In

relation to slum improvement, the existing institutional set-up can be broad categorized
into two levels: (a) Local level and (b) State level. This is further elaborated below.
Ujjain Municipal Corporation (UMC):
UMC is governed by Madhya Pradesh Municipal Corporation Act, 1956. Its main
functions are:
Providing basic civic services including water supply
Maintenance of public places and roads & streets
Regulating the construction of buildings and colonies within its territorial jurisdiction.
Issuing Completion Certificate and sanctioning colony layout Plan.
Regularize unauthorized colonies that have come within the city.
Implementation of the provisions of Master Plan along with UDA.
In addition, UMC implements projects/programmes meant for urban poor such as BSUP,
MPUSP, RAY and PMAY.
Directorate of Town and Country Planning (T&CP):
The prime responsibility of T&CP is to prepare Master Plan or Development Plan for the
city. It is governed by the Madhya Pradesh Nagar Tatha Gram Nivesh Niyam (Act) 1973.
T&CPO plays an important role in the planning stage for most of the aspects related to
the development of the city including that of slums and urban poor.
Madhya Pradesh Housing Board (MPHB):
MPHB, a Government of MP organization, is engaged in development and construction

of housing colony and commercial complex for all sections of society. It was instituted
in 1972 and since then MPHB has grown significantly. It is the largest single formal
builder and real estate developer in MP. In the context of affordable housing, its
contribution to LIG and EWS housing is sizeable.
State Level Steering Committee:
JNNURM proposed certain reforms to carry out functions for urban development and
especially provide basic services to poor. In order to decide projects and their
priorities for inclusion in JNNURM, the reforms suggested to form a State Level Steering
Committee comprising of chief minister as Chairman, minister of urban development or
housing for a state as vice-chairman and members including concerned MLAs/ MPs,
Mayors, secretaries from Finance, PHE, municipal administration, Urban Development
and municipal affairs, etc. The schemes under JNNURM as BSUP and IHSDP are being
implemented by a state level nodal agency designated by State Government.
4
Urban Development and Environment Department (UDED):
UDED is the State Level Nodal Agency (SLNA) in the state of MP. It was earlier known as
Urban Administration Development Department (UADD). It is responsible to carry out
functions of urban development and environment. Through different programs the urban
poor are facilitated with access to social services, provision of infrastructure and better
service delivery.
National Textile Commission (NTC):
After demolition of mill structures the land was transferred to NTC eventually. Further the
land was transferred to UMC for development purposes.
5
2.4. Study Area: Introduction
Hira Mill ki Chal in Ward no.17

Ward no. 17 in Ujjain City
Hira Mill ki Chal

Figure 2.4: Location of Hira Mill ki Chal
Hira Mill Ki Chal is an area located in the Ward no. of 17 of Ujjain city. The area is in the
heart of city i.e. it located in a very prime central area. Being in central area it is very well
connected with the rest of city. The land is primarily greenfield in nature and is owned
National Textile Corporation which is a government land. Due to all these factors, the land
holds a very high potential for commercial as well as institutional development.
The total site area is 46.83 Hectare. According to the primary survey, the population of
area is estimated to be 10,000 people with 2000 households. Out of 2000 quarters 560 are
the mill workers quarters while the remaining are unauthorised structures that have come up
over the years.
6
2.5. Study Area: Site Setting
Figure 2.5: Site Surrounding Hira Mill ki Chal
Hira Mill ki Chal is centrally located in the Ujjain city. Major roads like the Ujjain Ring Road
and the Ujjain Maksi Road is located in a very close proximity to the site.
Udyogpuri which is one of the main industrial centers is located closely to the site. Through
primary survey it was found that many people living in Hira Mill ki Chal go to Udyogpuri for
employment purposes. Udyogpuri mainly has powerlooms, small scale industries of incense
stick making and brrom making.
Main tourist attractions like the Mahakaleshwar Temple and Rudrasager Lake are located
within the 5km radius of site.
Freeganj which is one of the major commercial centre in the city is located just at a distance
of 2km from the site.
Recreational Centers like Chakor Park and Dussehra Maidan is also located near the site.
7
2.6. Study Area: Evolution
Figure 2.6: Evolution of Hira Mill Area over years
Hira Mill was established in 1950 in Ujjain. The land was leased by government to the mill. Mill
quarters were built for mill workers around the mill for mill workers. The mill closed down in 2002.
The structures of mill were there till 2005 and later they were destroyed. The mill workers
continued to live there without any formal ownership of the land. Later, as it can be observed in the
google earth imagery and from primary survey, the land was encroached by people.
This is a dilapidated cluster of quarters that initially housed the workers of the Hira Textile Mills
which has now become defunct. The 300 resident families have fallen into poverty over the past
two decades since the mill stopped production and are mostly engaged in casual labour. They are
also threatened with displacement due to the Government's plans of redeveloping the area against
which they are waging a struggle.
Currently, the Ujjain Smart City has proposed a Knowledge and Economic Hub in this area.
8
3. Context & Project
Rationale
3.1. Demand Assessment
According to the Ujjain Draft Development Plan of 2035, a shortage of 12000 houses has
been estimated for the estimated additional population of 2035.
Figure 3.1: RERA projects in Ujjain

Figure 3.2: Upcoming housing typologies in Ujjain
An analysis of the upcoming RERA projects has been conducted and it was found that the
majority of the upcoming housing projects are towards the Southern side of the city along
Indore Road. Among the upcoming projects, almost 70% are Detached type/ Plotted
housing projects while 20% are Muti-level apartments while the remaining 10% are row
housing type projects.
Figure 3.3: Percentage of preferred housing typologies in Ujjain
9
A primary survey was conducted to analyse the demand for the housing type and locations.
Almost 70% of respondents preferred Plotted housing over Apartments. While it was a
common finding that the residents staying towards the Southern preferred staying in the
Southern part, the respondents staying towards the North preferred the North because of
their jobs, shops, mandis, etc. Thus, the city of Ujjain has a demand for the Plotted type of
development the multi-rise apartments, especially towards the Northern side of the city.
For the current situation, 45% of the households with a monthly income of >1,00,000 owned
a house, while 20% had a monthly income of 50,000 - 1,00,000. The monthly income of
people living in the Plotted housing recorded was 25% for more than 1,00,000 while 45%
for income groups between 50000-25,000. Thus as of the current situation and Primary
survey analysis, the middle-income class in Ujjain prefer Plotted type of development.
Figure 3.4: Percentage of people's

willingness to stay in apartments Figure 3.5: Percentage of self-owned
houses of different income groups
Figure 3.6: Percentage of people living

Figure 3.7: Percentage of people living in
in plotted housing at different income
apartments at different income levels
levels
10
3.2 Need for Study
Figure 3.8: Development around Hira Mill
As per the CDP, the existing housing shortage in Ujjain is 21613 which is 10 % of total
available units and 11,000 dwelling units from slums. The project is developed to suffice the
existing housing demand. The site identified is Heera mill ki chawl, in the PMAY study a total
of 110 tenable and 50 non tenable slums were identified. Heera mill ki chawl was identified
to be the largest slum in Ujjain with 1027 households. Hence, it was chosen as the area. The
existing slum will be redeveloped under in-situ redevelopment. The site being located in
the central part of the city makes it a ideal to include profit making components such as
convention center and skill development center and a hotel.
The MIG component is developed to cater the existing housing demand in the study area.
The development of Mahakal corridor will increase the annual tourist inflow from 1.5 crore in
2022 to 2.26 crore in 2040. This will increase the demand for hotels. The site is a preferred
location as it is located in proximity to Mahakal temple. The DMIC corridor passing through
the Malwa region will attract industrial developments along the corridor and create a
demand for trade and related activities.
The convention center developed will cater to the demand and can be used to conduct
trade fairs, exhibitions and conferences. The city also has a rich intangible heritage and the
residents of the slum are also involved in incense stick making. hence, a skill development
center is proposed to establish themselves and exhibit their work. The in-situ slum
redevelopment will also not consider additional transit accommodation costs as there are
no existing developments in the site and the slum dwellers can be provided
accommodation within the site till the completion of construction. Hence, this project will
greatly benefit the slum dwellers and complement future developments.
11
3.3. Existing Scenario of Study Area
In order to understand the existing scenario of the selected study area, Primary data
collection surveys were carried out in the area. Household socioeconomic survey was
conducted of 35 households through a semi structured questionnaire to understand the
existing conditions of the area and the type of housing and infrastructure that they require.
Map 3.2 shows the building use within and in the surroundings of the study area, indicating
that majority of the area is vacant land with built up mainly within the slum boundary in the
form of residential and few mixed use buildings and some remaining mill structures. Also, it
can be observed that there are 6 wells and 1 pond within the site, which were used for
dying purposes while the mill was functional.
Key Map
Lala Rajpat Rai M

arg
Hira Mill
Dying Pond
Kshapnak Marg
Figure 3.9: Existing Built use (Slum and surrounding areas)

Source: Primary Survey
From the primary survey it was found

that the slum has a population of
approximately 10,000 with the average
household size being 5. Around 30% of
the houses have a piped water supply,
while the rest of them have to depend
on the wells and hand pumps for water. Figure 3.10: Wells and Hand pump as sources of water
12
The slum dwellers are engaged in different economic activities such as daily wage labourers
(48%), agarbatti making (10%), shopkeeping (19%) and auto driving (5%), as shown in figure
2.2.
Figure 3.11. Economic Activities in the Slum

There is a flyover passing

through the slum and it was
observed that the space
underneath it has been
utilised for community
facilities including a
Govt. Primary School Shops Government Primary
School, Community Hall,
temples, seating spaces
and shops as shown in
figure 2.3.
Temple with seating space Community Hall
Figure 3.12: Community spaces in the Slum

In the survey, the respondents were

also asked about their preferred
typology of housing for
rehabilitation and it was found that
70% prefered plotted so as to be
able to support their livelihood
activities. Figure 3.13: Preferred Housing typology (Slum Dwellers)
13
3.4. Zoning of Hira Milla ki Chawl
In Hira Mill ki Chawl, it was found that 50%

of the housed are in a partially dilapidated
condition, 43% in a dilapidated condition,
while 7% of them are in a tenable
condition. Apart from this, it was observed
that the houses can be zoned into two
categories based on their ownership as Figure 3.14: Housing Condition in the slum
shown in map 2.3. Source: Primary Survey
Figure 3.15: Zoning of Hira Mill ki Chawl (Based on Ownership)

Figure 3.16: Mill Worker Quarters Figure 3.17: Unauthorized Dwellings

Source: Primary Survey Source: Primary Survey
14
The two categories are as follows:
Mill Worker Quarters: These are the houses that belong to the workers of Hira Mill
and their families. They were provided to them by the mill owners and have existed
since the inception of the mill, which is over 100 years. As per primary survey there are
560 such quarters. The average size of these quarters is about 60 sq. m and they are
Semi-pucca houses with tin roofs. Majority of them are in a partially dilapidated
condition at present. After the closure of the mill in 2002, the workers have shifted to
other occupations, however they continue to reside in the quarters without any formal
ownership as no other alternative was provided to them.
Unauthorised Dwellings: These are the second category of Dwelling Units (DUs) found
within the slum, which belong to the people who started encroaching land and settling
down in the area post the closure of the mill, due to availability of vacant land in a
central location of the city. Therefore, people have built and have been residing in
these unauthorised DUs for approximately 10-15 years. The average size of these DUs is
30-40 sq. m and they are mostly kutcha houses in a dilapidated condition. It was
observed that most of the area within the slum is occupied by such houses, which are
approximately 1440 in number.
15
4. Project Concept &
Scope
4.1. Project Overview
For the proposed project, the entire study area has been divided to four parts (A, B, C and
D) as shown in Map 3.1. They occupy 45.6%, 15.8%, 35.0% and 3.4% of the area
respectively.
Figure 4.1: Component wise Division of Study Area

Source: Author
The three parts have been demarcated for the three different components of the project,
which are as follows:
1. PMAY Housing (ISSR Vertical): This is the In Situ Slum Redevelopment component of
the project, wherein the existing area of the Hira Mill ki Chawl (Plots A2 and A3) along
with plot A1, is to be redeveloped into a Group Housing for the inhabitants of the
existing slum. The total area under this component is 21.36 Ha (52.8 Acres).
2. Skill Development & Convention Centre: This is one of the free sale components to
be developed in plot B. The total area under this component is 7.42 Ha (18.3 Acres).
3. MIG Housing: This is the second free sale component to be developed in plots C1,
C2. The total area under this component is 16.41 Ha (40.6 Acres).
4. Hotel: An economy hotel is to be developed as the third free sale component in plot
D. Total area is 1.62 Ha (4.02 Acres).
Further, two scenarios have been considered for analysing the feasibility of the project. The
rationale for these proposals along with detailed calculations, site layouts, costing and
benefits for both the scenarios have been discussed in the upcoming sections.
16
4.2. In Situ Slum Redevelopment Model: Rationale
Selection of PMAY Vertical:
Selection of vertical plays an important role in the implementation of project. Aspects alike
land ownership, incentives and potential for free sale components eventually depends upon
model or vertical under which the project is being implemented.
Why “In situ” Slum Redevelopment Model?
This vertical is being implemented with a concept “Land as a resource” with private sector
participation for providing houses to eligible slum dwellers.This approach aligns with the
aim to leverage the locked potential of the land under slums and to provide houses to the
eligible slum dwellers bringing them into the formal urban settlement. According to
guidelines slums, whether on Central Government land/State Government land/ULB land,
Private Land, should be taken up for “in-situ” redevelopment for providing houses to all
eligible slum dwellers.
Apart from this slum rehabilitation grant of Rs. 1 lakh per house, on an average, would be
admissible for all houses built for eligible slum dwellers in all such projects.
To consolidate findings; it can be said that In situ Slum Redevelopment Model is best
applicable when:
1.Slums is located whether on Central Government land/State Government land/ULB land.
2.There is an availability of potential “free sale component”.
3.Relaxation of additional Floor Area Ratio (FAR)/Floor Space Index (FSI)/Transferable
Development Rights (TDR)
In case of Hira Mill ki Chawl the land ownership was with Ujjain Municipal Corporation. In
addition the site also has 34.83 Ha of land as for sale component. Relaxation of additional
Floor Area Ratio (FAR)/Floor Space Index (FSI)/Transferable Development Rights (TDR)
provides incentives to developers. Hence the project is decided to implement under ISSR
vertical.
Figure 4.2: In-Situ Slum Redevelopment: Rationale
17
4.3. Literature Review: ISSR Projects
Bhubaneshwar Affordable Housing
The strategy used for the project is Public-Private

Partnership and Cross-subsidy model. Paramitra Smart
Infrastructure Private Limited is the private developer
involved in the development. The project was
undertaken on 20.21-acre land by the Government. The
PPP model used was Design-Built-Finance-Transfer
(DBFT) model. The developer is required to build a total
of 2,600 affordable units on the land of 13.71 acres and
in return will get a freehold of 6.5 acres of the land. Figure 4.3 : Bhubaneshwar Mass
The developer is required to reach a milestone of 800 Affordable Housing Project
units in the first 24 months and 26,000 in the whole 36 Source: Odisha State Housing Board
months. The transfer of the developer component i.e.

6.5 acres is linked to the above milestones and will be
done in proportion. Thus, the developer needs to
construct 2,600 units in a period of 36 months and hand
them back to the Government. Bhubaneshwar
Affordable Housing is one of the largest mass housing
projects in India.
Shukhobrishti, New Town, Kolkata
The project was developed under Public-Private

Partnership. Bengal Shaprooji Housing
Development Private Limited is the private
developer involved. The project is being
developed on 150 acres of Acquired land. The
developer is to develop 20,000 apartments for
low and middle-income groups.
The project is in two phases. In the first phase, over
9,000 apartments have been constructed and
8,5000 were handed over to the beneficiaries. The
LIG apartments constructed have a Carpet area of
320 sqft and 444 units are being constructed.
Figure 4.4: Shukhobrishti Affordable Housing
3,840 Upper MIG units are to be constructed with
Project
a carpet area of 480 sqft, and 5,716 Upper MIG
Source: Shapoorji Pallonji
Apartments are being constructed with carpet area
of 690 sqft.
18
4.4. Pro-rata basis FAR Distribution
In order to calculate permissible built-up area; norms for In-situ slum redevelopment were
considered from Madhya Pradesh Bhumi Vikas Adhiniyam, 2012. For developing ISSR group
housing project the permissible FAR is 1.75 (1.25 + 0.5 premium for ISSR component) with a
permissible ground coverage of 35%.
The FAR distribution is done on the pro-rata basis to the entire site area of 468300 sq. m.
The total permissible built-up area is 819525 sq. m and further the component wise builtup
consumption was calculated.
Table 4.1: FAR Distribution Calculations
Plot Size (sq. m) 468300 sq. m
Space for Utilities and services and circulation 187320 sq. m
Actual Plot size for development 280,980 sq. m
Permissible FAR for ISSR 1.75
Total Permissible Builtup Area 491715 sq. m
4.5. PMAY ISSR Component: Calculations

In order to calculate total consumed built-up area for PMAY component; norms for In-situ
slum redevelopment were considered from Madhya Pradesh Bhumi Vikas Adhiniyam, 2012.
For developing ISSR group housing project the permissible FAR is 1.75 (1.25 + 0.5 premium
for ISSR component) with a permissible ground coverage of 35%.
There are existing 10,000 people living in this area with an average family size of 5 and
2000 households. Wherein 560 households belongs to mill workers and 1440 households
belongs to other slum dwellers who settled in area afterwards.
No. of No. of Mill No. of other

Slum Population Avg Family Size
Households Workers DUs DUs
10000 5 2000 560 1440
Carpet No of No of No of Total Plot Total Built Total Built Up

Plot Area
Area (in DUs Buildings Floors Area (F = C x Up Area per Area Req. for all
(E)
sq m) (A) (B) (C) (D) E) unit (G) DUs (H = B x G)
75 560 280 2 148.5 41580 111 62160
45 1440 720 2 91 65520 66 95040
Total 107100 157200
19
4.6. PMAY ISSR Component: Layout Details
As a majority of the respondents had mentioned plotted housing as their preferred housing
typology, the housing layout for the redevelopment project has been designed keeping
that as well as the other requirements of the residents.
The layout is inspired by Charles Correa's Belapur Housing (Figure 4.4), a low cost
incremental housing project in Thane district, on the fringes of Navi Mumbai.
Figure 4.5: Housing clusters of Belapur Housing

Source: architectopedia
The proposed layout for the 75 sq.m DUs for the mill workers have been shown in figure 3.2
and the 45 sq.m. DUs for the other slum dwellers will be arranged in a similar manner. It is
proposed to be a low-rise high density development, with the DUs arranged in a manner
that they will be having a hierarchy of open spaces, ranging from an individual yard per
household to the largest shared community space of 48x30m formed by the grouping of
housing clusters. the open spaces can be used by the residents as per their requirement for
various purposes.
The 75 sq.m
unit
Smallest
Open Space: Cluster of 7
8x4 m units
For individual Smallest shared
units open Space:
9x8 m
Grouping of 3 clusters
Medium sized
community space:
18x30 m
Grouping of 3
large clusters
Largest
Community
Space: 48x30 m
Figure 4.6: Proposed Housing layout
Source: Authors
20
4.7. Project Scenarios
Two scenarios have been formulated for analysing the feasibility of the project, considering
different built up for all 3 components except PMAY. The brief of both scenarios have been
given in this section. The report ahead has been divided into two parts based on the two
scenarios, providing detailed calculations for both scenarios.
Scenario 1:
A realistic approach has been adopted for this scenario. A gradual increase has been
considered in the events taking place in convention centre and the workshop occupancy.
The Hotel is a mid-rise structure and the MIG component has been designed taking into
account the current housing trends of the city. Table 4.3. shows the built up and capex of
the three components for this scenario.
Component Built up Capital Cost
99,530 sq. m
MIG Housing (plotted 720 DUs, apartment 160 Rs. 462.03 Cr
DUs)
45,600 sq. m
Hotel Rs. 127.83 Cr
(90 rooms)
Skill Development & Convention

18,526 sq.m Rs. 147.59 Cr
Center
Scenario 2:
An optimistic approach has been adopted for this scenario. It is considered that housing
trends in the city of Ujjain will approach high rises. As a result, the MIG dwelling is assumed
to have a high density. The Mahakal Corridor's construction is estimated to boost tourist
flow in Ujjain. Hence, a hotel high rise building is envisioned. This scenario considers an
increase in the capacity of convention and providing area for MSME in the skill
development centre. Table 4.4. shows the built up and capex of the three components for
this scenario.
Component Built up Capital Cost
1,44,604 sq. m (plotted 1032

MIG Housing Rs. 681.5 Cr
DUs, apartment 310 DUs)
67,400 sq. m
Hotel Rs. 188.76 Cr
(190 rooms)
Skill Development & Convention

22,631 sq.m Rs. 171.4 Cr
Center
21
Scenario 1
5. Project Calculations
In this section the built up calculations and layout of the MIG Housing, Hotel and Skill
Development and Convention Centre have been discussed for Scenario 1. The same for the
PMAY component has been discussed in the previous chapter as it remains the same in both
the scenarios considered.
5.1 MIG Housing: Concept

The MIG component in this area has more demand for housing than the HIG component.
Hence, considering the demand component, it was decided the for-sale component be the
MIG housing project. A typical site layout for the plot delineated for MIG Housing is given in
figure 5.1 with basic built-up calculations in table 5.1.
From the analysis, it was observed that the majority of the housing projects are towards the
Southern side of the city. From the Primary Survey and Real estate agency consultation, it
was inferred that people from the Southern side prefer staying towards the South while the
residents from the Northern side prefer staying toward the north because of their jobs,
shops, mandi, etc. But the people staying there would be willing to the nearby areas if a
better housing development is provided. Due to the lack of upcoming projects towards the
Northern side, this project has a potential to attract the demand.
Table 5.1: Built up Calculations of MIG Housing Component
Parameters Plot A Plot B
Total Area 65,651 sqm 98,497 sqm
Surrendered Area: 15%

Internal Roads, Open Parks:
10%, Site Services: 10%,
29,542.95 sqm 44,323.65 sqm
Commercial & amenities:
10%
Total: 45%
Area Available for sale 36108 sqm 54173 sqm
No. of Plots Delineated 181 271
22
Figure 5.1: Proposed Site layout - MIG Housing
Source: Authors
Plotted Development
For Plotted development, the

plot of 200 sqm has been
delineated per unit which will
have two dwelling units of
carpet area sizes considered as
85 sq.m. (Type A) and 110 sq.m.
(Type B). Each plot will have a
G+1 type of development with
double ownership per plot. The
total number of Dwelling Units
generated are 742. Built-up
calculations for the plotted
housing is in table 5.2 with a
Figure 5.2: Proposed Housing Layout
floor plan in figure 5.2. (Type A - 85 sq.m.) (Type B - 110 sq.m.)
23
Table 5.2: Built up Calculations of Plotted Housing
Plots Available 181 190
No. of Units Generated 362 380
Built-up area per plot 216 sqm 216 sqm
Built-up area used 39096 sqm 40955 sqm
Total Built-up area required for Plotted Housing 80051.0526 sqm
Apartment Type Development

G+3 type of apartments are proposed. The Carpet area sizes considered are 95 sq.m.
(Type C) and 110 sq.m. (Type D). Each floor will have 8 Dwelling Units. A total of 160
dwelling units are proposed with each unit having 32 units. A total of 5 apartment blocks are
being proposed. Built-up calculations for the apartment housing is in table 5.3 with a floor
plan in figure 5.3.
Table 5.3: Built up Calculations of Apartmental Housing
DUs included - 160
Ground Coverage of one unit - 970 sqm
Buiit-up used per block - (970 x4) 3880 sqm
Total Built-up area required for Apartments (3880 x 5) 19400 sqm
TYPE C
TYPE D
Figure 5.3: Proposed Apartment Layout
(Type C - 95 sq.m.) (Type D - 110 sq.m.)
24
5.2. Economy Hotel
Considering City’s cultural identity, the city gets tourist every year. The site is at a close
proximity to a number of tourist places in the city as well as railways station, which makes it
a prime hotspot for location of hotel which, by market demand shall be an economy hotel,
that is, a room size of 27 sq.m. The plan for two floors is given in figure 5.4.
The hotel offers regular and Deluxe room types. Standard rooms are 32 sq.m. in size,
whereas Deluxe rooms are 96 sq.m. It is also provided with reception area, a few cafes and
restaurants, kitchen, staff quarters, some shops and banquet hall for added revenue.
The plot size taken for hotel construction is 16,397 sq.m. of which 25% is taken as ground
coverage. The area of ground floor is thus 11,400 sq.m. The rooms are given from 2nd floor
which has a floor area of 6840 sq.m., goes upto five floors accounting to 90 rooms with
total built-up for hotel to be 45,600 sq.m.
Ground Floor Plan
1st Floor Plan

Figure 5.4: Proposed Site Layout for Economy Hotel
25
5.3. Convention Centre and Skill Development Centre
The city lacks a convention centre and hence, a convention centre is proposed in the site
area. The site being located in the central part of the city will suffice the existing demand.
From the primary survey analysis it was observed that the city has a rich intangible heritage.
A skill development institute has been proposed which will enrich and enhance their skills.
It will also attract the tourists and people from neighboring districts.
The proposed convention centre will be developed with a capacity of 2210 persons. The
elements will include an auditorium, exhibition halls, conference halls and a commercial
complex.
Figure 5.5: Proposed Site layout - Convention and Skill

Development Centre
Source: Authors
Area of Convention and Skill Development Centre

Table 5.4: Area Calculations of Convention and Skill Development Centre
Total
Permissible Total
Type of Total area Ground No.of Occupied
FAR Ground Permissible
Development (sq.m) Coverage Floors Built Up in
Coverage Built up
sq.m
Convention
18,000 1 35% 6300 18,000 3 13, 184
Centre
Skill
Development 24,000 1 35% 8400 24000 3 11904
Institute
26
The built up area for each component of convention and skill development centre is shown
in the table 5.5.
Table 5.5: Built up Calculations of Convention and Skill Development Centre
Components Built Up Area in sq. m.
Convention Center 3321
Auditorium/Function Hall 750
Conference Halls 441
Exhibition Hall 574
Reception Area, Foyer and Circulation 740
Dining Hall and Kitchen 674
Administration Area 83
Rest Rooms 59
Guest House 7749
Area under Rooms 4281
Reception and Lobby 140
Restaurant and Kitchen 1394
Circulation Area 1808
Commercial Complex 2206
Skill Development Center 5550
Administrative Block 1000
Library & Seminar Room 600
Academic Block 1800
Workshops 900
Instrumentation Lab 400
Cafeteria 150
Circulation 700
27
6. Project Cost
The component wise cost outlay for the project has been discussed in this section. For the
PMAY Component and MIG Housing components, the costs incurred consist of capital cost
and capital cost and transit accomodation cost respectively, as no operating phase for
these components have been considered. The costs for Hotel and the Skill Development
and Convention centre consists of capital cost and operating costs as well.
6.1. PMAY ISSR Component
The construction of this component will start in the first financial year of the project (FY 23)
and the duration of the construction is 2 years. The cost estimate for it is shown in tables 6.1
(a) and 6.2 (b).
The rates for cost estimation have been taken from the Volume 2 (Building Works) of the
Integrated Standard Schedule of Rates 2021, published by the Directorate, Urban
Administration and Development under Urban Development and Housing Department,
Government of Madhya Pradesh. An inflation rate of 7% has been applied on the rates as
they have been taken from the Schedule of Rates of 2021.
The percentages of the various costs have been taken from the case study of a
Demonstration Housing Project at Gachibowli, Hyderabad, Telangana published in
presentation of the Central Sanctioning and Monitoring Committee (CSMC) Minutes under
Pradhan Mantri Awas Yojana (PMAY-U) by the Urban Development & Housing Department
Government of Madhya Pradesh
For Transit Accommodation, 30 sq.m. houses will be provided to each household and Cost
has been taken at the rate of Rs. 90 per sq.ft (Rs. 968.751 per sq.m).
28
Table 6.1 (a): PMAY Component: Abstract for Cost estimates (Building Works)
Sr. No. Sub Head Amount in Crores (Rs.)
BUILDING WORKS
1 Civil Works
a Foundation 4.35
b Foundation Staircase 0.16
c Superstructure Panel 19.06
d Superstructure upto finishing 22.41
e Staircase 1.45
f Terrace 0.81
Total for Building Work 48.24
2 Sanitary and Water Supply (14%) 5.79
3 Electrical Works (12.5%) 6.03
Sub-Total (A) 60.06
INFRASTRUCTURE WORKS
a Boundary Wall 0.19
b Earth Filling 0.55
c Road and Pavement 1.36
d Septic Tank 0.46
e External Water Supply and Sewerage 1.00
f Drainage & Disposal 1.23
g External Electrification Work 0.97
h Plinth Protection 0.10
Sub-Total (B) 5.87
Total(C=A+B) 65.93
D=Cost Index @ 7% Above Schedule of Rates (on

4.61
C)
Total (C+D) 70.54
29
Table 6.1 (b): PMAY Component: Abstract for Cost estimates
Source: Authors
Sr. No. Sub Head Amount in Crores (Rs.)
4 Provision for Work Contract Tax (WCT) @ 5% 3.53
5 Provision for Labour cess @1% 0.71
6 Provision for Insurance Charges 0.52% 0.37
TOTAL (E) 75.14
7 Contingency (3%) 2.25
8 Planning & Designing charges (7.5%) 5.64
9 Overheads (7%) 5.26
TOTAL CONSTRUCTION COST 88.29
10 Transit Accomodation 5.81
11 Site Development 8.46
GRAND TOTAL 102.56
As shown in Table 6.1 (b), the total cost for the construction of the component along with
Site Development and the provision of Transit Accommodation is calculated to be Rs.
102.56 Crores.
30
6.2. MIG Housing Component
A total of 742 Dwelling Units are proposed for the plotted type of development and 160
Dwelling Units for the Apartment type of development. The Carpet sizes for plotted
development are 85 sqm and 110 sqm while for the apartment the DUs are 95 sqm and 110
sqm. The Construction cost of individual unit is mentioned in the table 6.2.
Table 6.2. MIG Housing Component: Abstract for Cost estimates

Source: Authors
ABSTRACT SHEET FOR COST ESTIMATES: MIG HOUSING

Sr.
Sub Head TYPE A TYPE B TYPE C TYPE D
No.
BUILDING WORKS 0.17 0.22 0.20 0.23
1 Sanitary and Water Supply (10%) 0.018 0.026 0.025 0.028
Electrical Works (10%) 0.018 0.027 0.026 0.029
2 Sub-Total (A) 0.210 0.270 0.250 0.290
Boundary Wall 0.002 0.003 0.002 0.003
Road and Pavement 0.002 0.003 0.002 0.003
3 Sub-Total (B) 0.004 0.005 0.005 0.006
4 Total (C=A+B) 0.210 0.267 0.253 0.286
D=Cost Index @ 7% Above Schedule of Rates
5 0.014 0.019 0.018 0.020
(on C)
Total (C+D) 0.230 0.285 0.270 0.306
Provision for Work Contract Tax (WCT) @ 5% 0.010 0.014 0.014 0.015
6
Provision for Labour cess @1 % 0.002 0.003 0.003 0.003
Provision for Insurance Charges 0.52% 0.001 0.001 0.001 0.002
TOTAL (E) 0.240 0.304 0.288 0.326
7 Contingency & Overheads (5%) 0.010 0.015 0.014 0.016
Planning & Designing charges (7.5%) 0.010 0.015 0.014 0.016
8 TOTAL (F) 0.020 0.030 0.029 0.033
GRAND TOTAL 0.448 0.459 0.456 0.463
Thus, considering an inflation of almost 7% the construction cost for the total units in the
respective years was calculated. The total estimated amount for the construction of the 902
MIG units is Rs. 455.51 Cr. Table 6.3 gives a detailed construction and cost phasing for MIG
Housing component.
31
Table 6.3: MIG Housing Component: Construction and Cost Phasing
CONSTRUCTION COST PHASING
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Plotted
85 sqm 41.2377 44.1244 47.2131 52.1653
110 sqm 42.2247 45.1804 48.3430 53.4138
Apartment
95 sqm 9.1234 9.7620 10.4454 11.1766
110 sqm 9.2575 9.9055 10.5989 11.3408
Total 5.3434 101.8433 108.9723 116.6004 128.0965 455.5124
CONSTRUCTION PHASING
TYPE A 85sq.m. Inflation 0.07
(Cr) 0.448 0.479 0.513 0.549
No. of Units 92 92 92 95
FY 2023 2024 2025 2026 2027 2028 2029
Cost 41.23 44.12 47.21 52.16
TYPE B 110 sq.m. Inflation 0.07
(Cr) 0.45896 0.49109 0.52547 0.56225
No. of Units 92 92 92 95
FY 2023 2024 2025 2026 2027 2028 2029
Cost 42.22 45.18 48.34 53.41
TYPE C 95 sq.m. Inflation 0.07
(Cr) 0.45 0.48 0.52 0.55
No. of Units 20 20 20 20
FY 2023 2024 2025 2026 2027 2028 2029
Cost 9.1234 9.7620 10.4454 11.1766
TYPE D 110 sq.m. Inflation 0.07
(Cr) 0.46287 0.49528 0.52995 0.56704
No. of Units 20 20 20 20
FY 2023 2024 2025 2026 2027 2028 2029
Cost 9.25 9.90 10.59 11.34
5.3433 101.8433 108.9723 116.6004 128.0965 455.5124
32
6.3. Economy Hotel Component
The proposed hotel is of the Economy class. The hotel offers regular and Deluxe room
types. Standard rooms are 32 square metres in size, whereas Deluxe rooms are 96 square
metres. The hotel's construction is G+5. With a 40% occupancy rate, the average room
revenue for the first year is assumed to be Rs. 1,250. The hotel also features a restaurant, a
conference room, a garden area, staff rooms, and offices. Nearly 15% of the hotel's total
built-up space is dedicated to other uses.
The table 6.4 includes information on the hotel's construction costs.
Table 6.4. Hotel Component: Abstract for Cost estimates

Source: Authors
ABSTRACT SHEET FOR COST ESTIMATES: ECONOMY HOTEL

Sr. No. Sub Head Amount in Rs. (in Cr)
BUILDING WORKS
Total for Building Work 82.08

1
Sanitary and Water Supply (10%) 8.61
Electrical Works (10%) 8.61
Sub-Total (A) 99.31
2
Boundary Wall/ Landscaping 0.99
Road and Pavement 1.20
3 Sub-Total (B) 2.19
4 Total(C=A+B) 101.57
4 D=Cost Index @ 7% Above Schedule of Rates (on C) 7.10
Total (C+D) 108.61
Provision for Work Contract Tax (WCT) @ 5% 5.43

5
Provision for Labour cess @1 % 1.08
Provision for Insurance Charges 0.52% 0.56
TOTAL (E) 115.69
6 Contingency & Overheads (5%) 5.78
Planning & Designing charges (7.5%) 5.78
7 GRAND TOTAL 127.26
33
Parameters Assumptions FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36
Employee Benefits/Salaries 75 Cr. 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75
Food
Food/Beverages 40% 0.15 0.18 0.21 0.24 0.30 0.37 0.41 0.41
Revenue
Total
Economy Hotel : Operating Cost
General Expenses 5% 0.12 0.14 0.16 0.19 0.24 0.29 0.32 0.32
Revenue
34
Total
Marketing Expenses 3% 0.69 0.83 0.98 0.11 0.14 0.17 0.19 0.19
Revenue
Source: Authors
Total
Consumables 5% 0.12 0.14 0.16 0.19 0.24 0.29 0.32 0.32
Revenue
Repairs & Maintenance 2% Total Cost 2.54 2.54 2.54 2.54 2.54 2.54 2.54 2.54
Total Expenses 3.74 3.83 3.93 4.03 4.21 4.41 4.55 4.55
revenue generated in the hotel given in table 7.3 like from food revenue, etc.
Table 6.5. Hotel Component: Abstract for Operations and Maintenance

The operating cost for the hotel is given in table 6.5 which is calculated from the respective
6.4. Convention Centre and Skill Development Centre
Convention Centre : The convention centre is developed with a total capacity of 2,210
persons. It will contain a main functional hall with a capacity of 940 persons, two exhibition halls
with a capacity of 720 persons each and two conference hall with a capacity of 550 persons
each. The convention centre is developed with guest room facility. A total of 104 rooms is to be
constructed. This will suffice the demand created by the convention centre and act as an
additional source of revenue. Along with this a commercial complex is to be developed with
12 units with an area of 35 sq.m per unit. The detailed costs are shown in Annexure
Table 6.6 (a): Convention Centre : Abstract for Cost estimates
Built up Total
Sub -
Component Quantity area in Construction
Components
sq.m Cost
Site Development 18,000 6.62 Cr
Auditorium/
1 750
Functional Hall
Exhibition Halls 2 574

Convention Centre 69.82 Cr
Conference
2 441
room
Guest rooms 104 7749
Commercial Centre Shops 12 2206 11.37 Cr
Pre-Operative Charges and

Contingencies (@4% total
2.63 Cr
construction cost of Convention
and Commercial Centre)
Cost of Equipments 1 Cr
@ 70% of
Landscaping 7.48 Cr
plot area
Grand Total 97.94 Cr
The rate of inflation was considered to be 7% and the total cost of the project is 91.3 crore.
The convention centre will be constructed in a span of 2 years.
35
Skill Development Centre: The Skill Development Centre is proposed with an intent to
promote the local arts of Ujjain like making incense sticks, making cloth and other things.
The skill development centre will instrumentation lab and workshops that can be rented by
workers to make their handicrafts. Provision of power looms is also made in the
instrumentation lab.
The total Construction cost includes Building works like water supply, sanitation, electricity,
furniture and fixtures and other charges like labour cess, contingency, planning and design
charges as well as overheads. The detail cost breakup for the same has been mentioned in
the Annexures.
Table 6.6(b): Skill Development Component: Abstract for Cost estimates
Area in
Buildings Quantity Total Construction Cost
sq.m.
Academic Block 1000 2 147739913 14.77 Cr
Library & Seminar

600 1 44321974 4.43 Cr
Room
Administrative
900 1 55402467 5.54 Cr
Block
Workshops 300 3 77563454 7.75 Cr
Instrumentation
400 1 29547983 2.95 Cr
Lab
Cafeteria 150 1 11080493 1.13 Cr
Total Cost : 396338582 39.63 Cr
Table 6.7: Total Project Cost for Convention centre & Skill Development centre
Total Project Cost for Convention Centre and Skill Development

Centre (in Crore)
Total Project Cost for Skill Development Center 39.63
Total Project Cost for Convention Center 91.3
Site Development 16.66
Grand Total 147.59
36
Skill Development and Convention Centre: Operating Cost
Table 6.8.(a) Convention Centre Component: Abstract for Operations & Maintenance
Source: Authors
Components FY29 FY30 FY31 FY31 - 37
Annual
0.08 0.08 0.08 0.08
Maintenace
Man Power
1.89 1.89 1.89 1.89
Cost
Annual
Operational 0.39 0.39 0.39 0.39
Expenses
Total @ 7%
2.02 2.16 2.32 2.48
inflation
Table 6.8.(a) Commercial Centre Component: Abstract for Operations & Maintenance
Source: Authors
Component Quantity Units Rate per sq.m Cost
Annual
Maintenace
Transformer,
2206 sq.m sq.m ₹10.2 22,501
Generator
Light System 2206 sq.m sq.m ₹6.1 13,456
Lift 2206 sq.m sq.m ₹6.1 13,456
Chiller, Pump 2206 sq.m sq.m ₹6.1 13,456
AC 2206 sq.m sq.m ₹6.1 13,456
Fire Fighting
2206 sq.m sq.m ₹4.1 9,044
System
Total
85,369
Maintenance
37
Table 6.8.(a) Guest room Component: Abstract for Operations & Maintenance
Source: Authors
Operational Year
Components
FY29 FY30 FY31 FY32
Employee
75 lakhs 0.75 Cr 0.75 Cr 0.75 Cr 0.75 Cr
Benefits/Salaries
@ 40%
Food/Beverages revenue from 0.46 0.61 0.76 1
f&b
@ 5% total
General Expenses 0.36 0.48 0.59 0.78
revenue
@ 3% total
Marketing Expenses 0.21 0.28 0.35 0.46
revenue
@ 5% total
Consumables 0.36 0.48 0.59 0.78
revenue
Repairs & @ 2% total

0.44 0.44 0.44 0.44
Maintenance cost
Total Expenses 1.8 3.06 3.51 4.2
Table 6.8.(b) Skill Development Component: Abstract for Operations & Maintenance
Source: Authors
Costs in Crores
Recurring Costs FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Employees
0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.30
Remuneration
Utility Charges 0.21 0.22 0.24 0.26 0.28 0.29 0.32 0.34 0.36
Gen.
Administration 0.007 0.007 0.007 0.008 0.009 0.009 0.010 0.010 0.011
Expenses
Maintainance
0.0020 0.0021 0.0023 0.0025 0.0026 0.0028 0.0030 0.0032 0.0034
Costs
Library
0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010
Aquisitions
Supplies 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
TOTAL 0.50 0.53 0.56 0.59 0.64 0.68 0.73 0.78 0.83
38
Table 6.9 Skill Dev. & Convention Centre Abstract for Operations & Maintenance
Source: Authors
Cost in Crores
FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Convention
2.03 2.17 2.32 2.48 2.66 2.84 3.04 3.25 3.48
Centre
Guest rooms 1.88 2.01 2.15 2.30 2.46 2.64 2.82 3.02 3.23
Commercial
0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
complex
Skill
Development 0.45 0.48 0.52 0.55 0.59 0.63 0.68 0.72 0.77
Center
Total O & M 3.91 4.19 4.48 4.79 5.13 5.49 5.87 6.28 6.72
39
7. Project Benefits
The component wise benefits have been discussed in this section. For the PMAY component
the benefits include Grant of 1 lakh rupees per household from the central and state
governments each, along with sale proceedings from the DUs. For the MIG component,
Sale proceedings are the source of revenue, which have been calculated and phased as per
typology. The revenue for Hotel has been calculated on the basis of room occupancy. For
the Skill Development and Convention centre, the revenue has been calculated on the basis
of number of events.
7.1. Sale Proceedings and Grants: PMAY Component
The Central Government is contributing Rs.1.00 lakh to Rs.2.67 lakh for each house under
different verticals of the scheme. In reference to recent CSMC minutes it has been noted
that in Madhya Pradesh most of the PMAY projects has got central assistance of 1 lakh.
Considering the same scenario it can be expected to get 1 lakh of central assistance per
dwelling unit. Therefore the total central assistance for 2000 DUs would account to be 20
Crores in total.
The scheme promotes a synergetic partnership of the people and the Governments. In
consonance of the Mission Guidelines, States/ UTs are also contributing a substantial amount
of Rs 1-2 Lakh on an average. On similar basis 1 lakh of State assistance is considered which
will contribute to 20 Cr.
Whereas beneficiary contribution of 3 lakh per DU for 75 sq m carpet area is being taken
into account. On other hand, beneficiary contribution of 2 lakhs should be taken for45 sq m
carpet area dwelling unit.
The phasing of the grants is done in 2 initial investment years. Perhaps, the sale proceedings
can start at FY 24 till end of the FY 25 . Table 7.1 below elaborates the same.
Table 7.1: PMAY Sale Proceedings and Grants Phasing
Years
Source
FY 23 FY 24 FY 25
Grants from Central and State Government 20 Cr 20 Cr
Beneficiaries contribution for 560 DUs 3 lakhs per DU

0 16.8 Cr 0
(75 sq m)
Beneficiaries contribution for 1440 DUs 2 lakhs per DU

0 0 28.8 Cr
(45 sq m)
Total 20 Cr 36.8 Cr 28.8 Cr
40
7.2. Sale Proceedings: MIG Component
Table 7.2: Sale Phasing MIG Housing
SALE PHASING
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30
Plotted
Type A 13.8 28.704 44.80 62.75 48.95 34.04 17.95
Type B 19.55 40.664 63.46 88.89 69.34 48.23 25.43
Apartment
Type C 2.8 5.82 9.08 12.61 13.62 10.60 7.33 3.80
Type D 3.2 6.65 10.38 14.41 15.57 12.11 8.38 4.35
Total
39.35 81.848 127.74 178.68 147.49 105.00 59.10 8.16
(Cr)
SALE PHASING
Market
TYPE A 85sq.m. 0.08
Increase
(Cr) 0.6 0.648 0.69984 0.7558272
No. of Units 92 92 92 95
FY 23 24 25 26 27 28 29 30
Sale Proceeds 14 14 14 14
15 15 15 15
16 16 16 16
18 18 18 18
Total (Cr) 14 29 45 63 49 34 18
Market
TYPE B 110 sq.m. 0.08
Increase
(Cr) 0.85 0.918 0.99144 1.070755
No. of Units 92 92 92 95
FY 23 24 25 26 27 28 29 30
21 21 21 21
23 23 23 23
25 25 25 25
Total (Cr) 20 41 63 89 69 48 25
41
Market
TYPE C 95 sq.m. 0.08
Increase
0.881798 0.95234
(Cr) 0.7 0.756 0.81648
4 2272
No. of Units 16 16 16 16 16
FY 23 24 25 26 27 28 29 30
3 3 3 3
3 3 3 3
4 4 4 4
4 4 4 4
Total (Cr) 3 6 9 13 14 11 7 4
Market
TYPE D 110 sq.m. 0.08
Increase
1.007769 1.08839
(Cr) 0.8 0.864 0.93312
6 1168
No. of Units 16 16 16 16 16
FY 23 24 25 26 27 28 29 30
3 3 3 3
4 4 4 4
4 4 4 4
4 4 4 4
Total (Cr) 3 7 10 14 16 12 8 4
FY 0 1 2 3 4 5 6 7
Total (Cr) 39.35 81.85 127.75 178.69 147.50 105.00 59.10 8.16
The sales phasing period is considered to be 8 years. The instalments will be taken as the
unit's construction develops (25% as a booking amount, 25% at completion of the Plinth,
25% upon completion of the walls, and 25% upon completion of the entire building).
42
Days Room
Hotel Rooms
open Nights
Hotel information 90 365 32,850
Occupancy
Occupancy rate 45% 50% 55% 60% 70% 80% 85% 85% 85%
7.3. Revenue Generation: Hotel
Room nights
0.0014 0.0016 0.0018 0.0019 0.0023 0.0026 0.0028 0.0028 0.0028
occupied
43
Revenue
Average daily room

1,250 1,350 1,450 1,550 1,650 1,750 1,850 1,850 1,850
rate
Total room revenue 1.85 2.22 2.62 3.06 3.80 4.60 5.17 5.17 5.17
Other
Table 7.3: Hotel Components Sale Proceedings
Food & beverage 20% 0.37 0.44 0.52 0.61 0.76 0.92 1.03 1.03 1.03
Other 5% 0.09 0.11 0.13 0.15 0.19 0.23 0.26 0.26 0.26
Total other revenue 0.46 0.55 0.66 0.76 0.95 1.15 1.29 1.29 1.29
Total revenue 2.31 2.77 3.27 3.81 4.74 5.74 6.45 6.45 6.46
table 7.3. It is assumed that the revenue is kept constant for the last three financial years.
The hotel will have 90 rooms, and the initial room revenue will be Rs. 1250, based on the
while occupancy will rise by 5%. As a result, the revenue predicted at the conclusion of FY
room rates in the surrounding area. The room rent is expected to rise by Rs. 100 each year,
37 is Rs. 6.4 Cr. The detailed sale proceedings for the revenue of economy hotel is given in
7.4. Revenue Generation: Convention and Skill Development Centre
Table 7.4.: Revenue from Convention Centre
CONVENTION CENTER AND GUEST HOUSE (All costs in crores)

Operational Year
Component
FY 29 FY 30 FY 31 FY 32
Convention Centre
Auditorium/Function Hall 0.34 0.41 0.41 0.41
Conference Halls 0.48 1.01 1.01 1.01
Exhibition Hall 0.26 0.62 0.62 0.62
Dining Hall and Kitchen 1.68 1.89 1.89 1.89
Total 2.76 3.93 3.93 3.93
@5% increase 2.76 4.12 4.33 4.55
Guest Room
Occupancy of Guest Rooms 45% 55% 65% 75%
No of rooms occupied per event 46.8 57.2 67.6 78
Days occupied per event 3 3 3 3

Revenue
Room rent per day (5% annual increase) 1200 1250 1300 1350
Revenue from guest rooms per day 56,160 71,500 87,880 105300
Total revenue from guest rooms per event 0.02 0.02 0.03 0.03
Other
Food and Beverages (@ 20% of room revenue) 0.003 0.004 0.005 0.006
Other (@ 5% of room revenue) 8424 10725 13182 15795
Total revenue from other sources 42,120 53,625 65,910 78,975

Total revenue per event 210,600 268,125 329,550 394,875
Total revenue per year 42120000 59,523,750 73,160,100 87,662,250
Commercial Centre
Shops 52500000 52500000 0 0
Parking
On ground parking 1505000 7770000 7770000 7770000
@5% 1505000 8158500 8566425 8994746.25
Grand Total 12.37 Cr 16.14 Cr 12.50 Cr 14.21 Cr
Assumptions : Convention Centre
Average Max
Events at
Event Events Maximum Events in Year of
Components Yearly saturation
Duration Possible Utilisation Initial year Saturation
level
in days Monthly
Auditorium/Function
3 10 120 40% 48 40 21
Hall
Conference Halls 2 15 180 70% 126 120 13
Exhibition Hall 3 10 120 70% 48 40 13
Dining Hall and

45 540 270 240
Kitchen
44
The Skill Development Centre has workshops and instrumentation labs that will be rented to
people on per hour basis. The occupancy rate of the workshops is gradually increased over
the period of first four years and for for the remaining years and then kept constant.
Table 7.5 Revenue from Skill Development Centre
Revenue: Skill Development Centre
Occupancy of
40% 50% 60% 75% 85% 85% 85% 85% 85%
Workshops
Revenue FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
workshop rent
per hour (5% 100 105 110 116 122 128 134 141 148
annual increase)
power loom
workshop
150 158 165 174 182 191 201 211 222
rent/hour (5%
annual increase)
Revenue from
workshop rent 1,200 1,260 1,323 1,389 1,459 1,532 1,608 1,689 1,773
per day
Revenue from
powerloom
1,800 1,890 1,985 2,084 2,188 2,297 2,412 2,533 2,659
workshop per
day
Total Revenue
from all 4800 6,300 7938 9724 10210 10721 11257 11820 12411
workshops
Total revenue
all powerloom 3600 3,780 3969 4167 4376 4595 4824 5066 5319
workshops
Total Revenue
from rents per 8400 10,080 11907 13892 14586 15315 16081 16885 17729
day
Food and
Beverages (@
20% of 1,680 2016 2381 2778 2917 3063 3216 3377 3546
workshop
revenue)
Other (@ 5% of
workshop 420 504 595 695 729 766 804 844 886
revenue)
Total Revenue
of skill
10,500 12,600 14884 17,364 18,233 19,144 20,101 21,107 22,162
development
center per day
Total Revenue
of skill
3150000 3780000 4465125 5209313 5469778 5743267 6030430 6331952 6648549
development
center per year
45
Table 7.6: Total Revenue from all components of Skill Development and Convention Centre
Revenue in Crores
Component Operational Year
FY 29 FY 30 FY 31 FY 32
Convention
2.76 4.12 4.33 4.54
Centre
Guest House 4.21 5.95 7.32 8.77
Commercial
5.25 5.25 0 0
Centre
Skill
Development 0.54 0.73 1.04 1.16
Centre
Parking 0.15 0.82 0.86 0.90
Total Revenue 19.97 25.80 21.13 24.54
Revenue in Crores
Component Operational Year
FY 33 FY 34 FY 35 FY 36 FY 37
Convention
4.77 4.77 4.77 4.77 4.77
Centre
Guest House 9.09 9.42 9.74 10.06 10.39
Commercial
0 0 0 0 0
Centre
Skill
Development 1.22 1.28 1.34 1.41 1.48
Centre
Parking 0.94 0.99 1.04 1.09 1.15
Total Revenue 25.47 26.23 26.99 27.75 28.51
46
8. Benefit Cost
Analysis
8.1. Phasing: Project Cost
The Construction of the entire project is phased over a period of 6 Financial Years from
2023 (FY 23) to 2028 (FY 28). The phasing of the Construction and the Cost of Construction
along with Site Development and provision of transit accommodation has been shown in
table 8.1.
Table 8.1. Phasing of Project Construction
Source: Authors
Project Phasing
Years of
Component
Construction
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28
Site Development
+Transit
PMAY Component 2 60%
Accommodation
+ 40%
MIG Housing
5 Site Development 25% 25% 25% 25%
Component
Site
Hotel 4 34% 33% 33%
Development
Skill Development & Site

4 42% 42% 16%
Convention Center Development
Construction of the PMAY component will begin in FY 23 and extend to FY 24. Site
development and Transit Accommodation provision will be carried out in FY 23 along with
40% of Project Construction. The remaining 60% construction will be done in FY 24.
For the MIG Housing, Site Development will be done in FY 23 and the project construction
in phased over a period of 4 years from FY 24 to FY 27, with 25% of construction being
carried out each year.
The Construction of the Hotel and the Skill development and Convention Centre will begin
after the completion of the PMAY component. For the Hotel Site Development will be
done in FY 25, followed by 34%, 33% and 33% of construction in the subsequent years.
For Skill development and Convention Centre also Site Development will be done in FY 25,
followed by 42%, 42% and 16% of construction in the subsequent years.
47
Table 8.2. Scenario 1: Phasing of Project Cost (Capex, Opex, Site Dev. and Transit Accommodation
Source: Authors
Total Expenditure: Capex, Opex, Site Development and Transit Accommodation (in Crores)
Construction Phase Operating Phase

Sr
Component FY FY FY FY FY
No FY 24 FY 25 FY 26 FY 27 FY 29 FY 32 FY 33 FY 34 FY 35 FY 36
23 28 30 31 37
PMAY
1 49.59 56.68
Component
2 MIG Housing 6.52 101.84 108.97 116.60 128.10
3 Hotel 0.65 43.24 41.97 41.97 3.74 4.00 4.10 4.20 4.32 4.51 4.72 4.86 4.86
Skill
Development
4 6.62 45.65 45.65 17.07 3.91 4.18 4.48 4.79 5.13 5.49 5.87 6.28 6.72
& Convention
Center
Total Capital
56.11 158.52 116.24 205.49 215.72 59.04
Cost
Total
Operating 7.65 8.18 8.58 8.99 9.45 10.00 10.59 11.14 11.58
Cost
Table 8.2 shows the phasing of Costs over the total project period of 15 years from FY 23 to
FY 37. The Operating phase of the Hotel and Skill Development centre will start from FY 29
and the costs in this period is the operation cost.
For Hotel the operating cost has been calculated on the basis of occupancy rate which is
taken to be 45% in FY 29, 50% IN FY 30, 55%, 60%, 70%,80% and 85% in the subsequent
years.
For the skill development and Convention centre the operating costs have been calculated
on the basis of annual maintenance, manpower, and guest room occupancy costs.
8.2. Phasing: Project Revenue, Grants & Sale Proceedings
PMAY component will have both sale proceedings and grants in initial years of
development only. Sale proceedings are being collected from beneficiaries contributions
for FY 24 and 25. Grants will be received in two phases FY 23 and 24.
MIG Component will have sale proceedings from FY 23 to FY 30. Hotel, Skill Development
and Convention Center will start its revenue generation from FY 29. Following table shows
the total revenue for all the financial years.
48
Revenue/ Sale Proceedings Phasing (in Crores)
Sr No Component
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Sale
0.00 16.80 28.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proceedings
1 PMAY Component
Grants 20.00 20.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sale
2 MIG Housing 39.35 81.85 127.75 178.69 147.50 105.00 59.10 8.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Proceedings
49
Source: Author
3 Hotel Revenue 0.00 0.00 0.00 0.00 0.00 0.00 2.31 2.77 3.33 3.99 4.79 5.75 6.90 8.28 9.93
Skill Development
4 & Convention Revenue 0.00 0.00 0.00 0.00 0.00 0.00 16.29 18.08 20.07 22.28 24.73 27.45 30.47 33.82 37.54
Center
Total 59.35 118.65 156.55 178.69 147.50 105 77.70 29.02 23.40 26.27 29.52 33.20 37.37 42.10 47.47
8.3. Discounted Cashflow Analysis
To look at the project feasibility, it is important to understand how the expenditures and
revenue are balanced out. For any project to be feasible, it is essential to have a net profit.
Therefore Discounted Cash Flow analysis has been done to calculate the same for this
project, as shown in table 8.3.
To consider the time value for money, a 10% discount rate was assumed to calculate the
cumulative discounted cash flow for the project.
Year FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Project Outflow -56.10 -158.53 -116.24 -205.49 -215.72 -59.04 -7.65 -8.19 -8.76 -9.37 -10.03 -10.73 -11.48 -12.29 -13.15
Project Inflow 59.35 118.65 156.55 178.69 147.50 105.00 74.10 27.46 16.23 18.55 21.10 23.91 26.61 28.83 31.29
Net Cash Flow 3.25 -39.88 40.30 -26.81 -68.22 45.96 66.45 19.27 7.47 9.18 11.07 13.17 15.13 16.54 18.14
Cumulative Cash
3.25 -36.63 0.43 13.50 -95.02 -22.26 112.41 85.72 26.74 16.65 20.25 24.24 28.30 31.67 34.68
Flows
Discount Rate 10%
Discount factor 1.00 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39 0.35 0.32 0.29 0.26
Present Value of
3.25 -36.25 33.31 -20.14 -46.59 28.54 37.51 9.89 3.48 3.89 4.27 4.62 4.82 4.79 4.78
NCF
Cum. Disc. Cash

3.25 -33.00 0.30 -19.84 -66.43 -37.89 -0.38 9.51 12.99 16.88 21.15 25.77 30.59 35.38 40.16
Flows
50
Figure 8.1: Graph showing Total Outflow, Inflow and Cumulative Cashflows
Source: Authors
As per the calculations shown in Table 8.3. the Internal Rate of Return (IRR) of the project
comes out to be 25% and the Net Present Value (NPV) is calculated to be 40.16 Crores. It
can be seen that the project starts making profit in FY 30, which is the second financial year
after the completion of the construction of all the components.
This shows that the project will have feasible rate of return and thus is a viable project.
8.5. Phasing: Benefit Cost Ratio
The benefit-cost ratio indicates the relationship between the cost and benefit of project or
investment for analysis as it is shown by the present value of benefit expected divided by
present value of cost which helps to determine the viability and value that can be derived
from investment or project. Here as well the present values of benefit and present values of
cost are calculated and eventually BCR (Benefit Cost Ratio) is calculated.
Benefit Cost Ratio (BCR) = Σ Present Value of benefit expected from the project/ Σ
Present Value of cost of the project
BCR = 709.72/ 669.56
BCR = 1.06
The BCR value greater than 1 shows that the NPV is positive and project will meet expected
outcome.
51
Scenario 2
9. Project
Calculations
9.1 MIG Housing: Concept
In the Scenario 2, the density of the area is considered to be high. It is assumed that housing
trends in the city of Ujjain will follow high rise in an optimistic scenario. Hence, the number of
floors for the Apartments as well as plotted development is increased. The plotted houses will
follow G+2 type of development and the Apartments will have G+7 type of development
crediting to a high rise development. 60:40 ratio of housing typology distribution is
considered for categorization of dwelling units into plotted and apartment, where plotted
housing will have 60% unis and 40% units will be developed as Apartments.
Plotted Development
For Plotted development, the plot of 200 sqm has been delineated per unit which will have
two dwelling units of carpet area sizes considered as 85 sq.m. (Type A) and 110 sq.m. (Type
B). Each plot will have a G+2 type of development where the ground floor units will be of
Type A and 1st and 2nd floor will have Type B units.
Table 9.1. Scenario 2: Built up Calculations of Plotted Housing
Plot A Plot B
Plots Available 181 163
No. of Units Generated 543 488
Built-up area per plot 308 sqm 308 sqm
Built-up area used 55748 sqm 50056 sqm
Total Built-up area required for Plotted Housing 105804 sqm
52
Apartment Type Development
Here, G+7 type of development is proposed. Each floor will have four Type C and four
Type D units. Thus the total units per Apartment block will be 62.
Plot A Plot B
DUs included - 310
Ground Coverage of one unit - 970 sqm
Buiit-up used per block - (970 * 3) 7760 sqm
Total Built-up area required for Apartments (7760 x 5) 144604 sqm
9.2. Economy Hotel
With the development of Mahakal Corridor, the tourist flow is expected to increase.
Hence, a high rise development for hotel is envisioned. In this scenario, the floor area on the
first floor has been considered similar to ground floor with floor area of 11,200 sq.m.
Hence, the number of room to be increased is 190.
Ground Coverage 310
Built-up Ground floor 11400 sqm
G+1,2,3,4,5 56000 sqm
Total Built-up area required for Apartments 67400 sqm
53
9.3. Convention and Skill Development Center
In Scenario 2, which is the optimistic scenario the capacity of the convention centre has
been increased in order to accommodate more guests for mega events. So, according to
the capacity of the convention centre, the capacities of guest house has also been
increased accordingly. The percentage of occupancy of the convention centre has also
been increased in the in the optimistic scenario.
In the Convention centre, the capacity is increased. It is assuemed that the country’s longest
expressway Delhi - Mumbai 8 lane Expressway is passing through Malwa region will
promote new developments along the corridor. It will also enhance the connectivity
between economic hubs like Jaipur, Ajmer, Kota, Bhopal, Ujjain, Indore etc,. Hence, this
will induce demand for trade and related actvities. The convention centre's capacity will be
increased to facilitate trade fairs, exhibitions and conferences. It is also expected that the
Agar-Malwa Industrial belt that is proposed by MPIDC will have an influence in the study
area. It is attracting close to Rs 300 crore investments from micro and small scale industries.
For the Skill Development Centre, the number of workshops have been increased. Micro,
Small and Medium Enterprises have been encouraged by providing them dedicated
workshop spaces for their production. Incense stick making, broom making, wooden comb
making, Batik printing, Bherugarh printing are some of the popular small scale industries in
Ujjain with a considerable population involved in these occupations. Apart from this the
small scale Agro-based industries also provide employment in Ujjain according to the MSME
reports. Therefore, more number of workshops are provided and the occupancy
percentage of these workshops in increased in the optimistic scnario.
54
Table 9.4 : Scenario 2 : Built up Calculations of Convention and Skill Development Centre
Components Built Up Area in sq. m.
Convention Center 3985
Auditorium/Function Hall 920
Conference Halls 530
Exhibition Hall 675
Reception Area, Foyer and Circulation 880
Dining Hall and Kitchen 810
Rest Rooms 70
Guest House 9298
Area under Rooms 5220
Reception and Lobby 181
Restaurant and Kitchen 1581
Circulation Area 2167
Commercial Complex 2647
Skill Development Centre 7550
Administrative Block 1000
Library & Seminar Room 600
Academic Block 1800
Workshops 2800
Instrumentation Lab 400
Cafeteria 150
Circulation 800
54
10. Project Cost
The section discusses the project costs as per the scenario 2 built up calculations. Since ithe
cost remains the same for the PMAY Component, therefore the PMAY component has not
been added here.
10.1. MIG Housing: Construction Cost
The phasing for the MIG is distributed across four years considering the scale of the project.
The construction phasing of the components is shown in Table 10.1.
Table 10.1 : Scenario 2 : MIG Housing Component: Construction and Cost Phasing
CONSTRUCTION COST PHASING (All costs in crores)
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Plotted
85 sqm 77.09 82.49 88.26 94.44
110 sqm 39.41 42.17 45.12 48.28
Apartment
95 sqm 17.67 18.91 20.23 21.23
110 sqm 18.05 19.31 20.66 21.54
Total 0.65 152.24 162.89 174.30 185.51
55
10.2. Economy Hotel Component
The proposed hotel is of the Economy class. The hotel offers regular and Deluxe room
types. Standard rooms are 32 square metres in size, whereas Deluxe rooms are 96 square
metres. The hotel's construction is G+5. With total number of rooms to be 190.
Table 10.2 : Scenario 2 : Hotel Component: Abstract for Cost estimates

Source: Authors
ABSTRACT SHEET FOR COST ESTIMATES: ECONOMY HOTEL

Sr. No. Sub Head Amount in Rs. (in Cr)
BUILDING WORKS
1 Total for Building Work 121.32
Sanitary and Water Supply (10%) 12.73
Electrical Works (10%) 12.73
2 Sub-Total (A) 146.79
Boundary Wall/ Landscaping 1.46
Road and Pavement 1.77
3 Sub-Total (B) 3.24
4 Total(C=A+B) 150.04
4 D=Cost Index @ 7% Above Schedule of Rates (on C) 10.50
5 Total (C+D) 160.54
Provision for Work Contract Tax (WCT) @ 5% 8.02
Provision for Labour cess @1 % 1.60
Provision for Insurance Charges 0.52% 0.83
6 TOTAL (E) 171.01
Contingency & Overheads (5%) 8.55
Planning & Designing charges (7.5%) 8.55
7 GRAND TOTAL 188.11
56
FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36
Employee Benefits/Salaries 75 Rs. Cr. 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75
Food
Food/Beverages 40% 0.31 0.37 0.44 0.52 0.64 0.78 0.87 0.87
Revenue
Total
General Expenses 5% 0.24 0.29 0.35 0.40 0.50 0.61 0.68 0.68
Revenue
Economy Hotel : Operating Cost
57
Total
Marketing Expenses 3% 0.15 0.18 0.21 0.24 0.30 0.36 0.41 0.41
Revenue
Source: Authors
Total
Consumables 5% 0.24 0.29 0.35 0.40 0.50 0.61 0.68 0.68
Revenue
Repairs & Maintenance 2% Total Cost 2.54 2.54 2.54 2.54 2.54 2.54 2.54 2.54
Total Expenses 4.24 4.54 4.74 4.96 5.20 5.60 6.04 6.35
revenue generated in the hotel given in table 6.3 like from food revenue, etc.
Table 10.3 : Scenario 2 : Hotel Component: Abstract for Operations and Maintenance
The operating cost for the hotel is given in Table 5.5 which is calculated from the respective
10.3 Cost Estimation Convention Centre and Skill Development Centre
Convention Centre : In this scenario the total capacity of the convention centre has been
increased to 2656 persons. The capacity of main functional hall will be increased to 1150
persons, the capacity of two exhibition halls has been increased to 662 persons each and two
conference hall with a capacity of 843 persons each. The count of guest room is increased to
226. This will suffice the new demand created. Along with this a commercial complex is to be
developed with 18 units with an area of 35 sq.m per unit. The detailed costs are shown in
Annexure
Assumption : The Delhi Mumbai Expressway is passing through Malwa region. It will enhance the
connectivity between economic hubs like Jaipur, Ajmer, Kota, Bhopal, Ujjain,
Indore. This will promote development of new industries along the corridor, its impact will
influence the development of small scale industries in Ujjain. The convention centre will facilitate
trade fairs and the skill development institute will provide spaces for small scale industries
Table 10.4 : Scenario 2 : Convention Centre and Skill Development Centre Component: Cost Estimation
Source: Authors
Sub - Built up area

Component Quantity Total Construction Cost
Components in sq.m
Site Development 18,000 6.62 Cr
Auditorium/
1 920
Functional Hall
Exhibition Halls 2 530

Convention Centre 83.59 Cr
Conference
2 675
room
Guest rooms 226 9298
Commercial Centre Shops 18 13.65

Contingencies (@4% total
construction cost of 2.9 Cr
Convention and Commercial
Centre)
Cost of Equipments 1 Cr
@ 70% of plot
Landscaping 7.48 Cr
area
Grand Total 101 Cr
58
Skill Development Centre: The Skill Development Centre is proposed with an intent to
promote the local arts of Ujjain like making incense sticks, making cloth and other things.
The skill development centre will instrumentation lab and workshops that can be rented by
workers to make their handicrafts. Provision of power looms is also made in the
instrumentation lab.
The total Construction cost includes Building works like water supply, sanitation, electricity,
furniture and fixtures and other charges like labour cess, contingency, planning and design
charges as well as overheads. The detail cost breakup for the same has been mentioned in
the Annexures.
Table 10.5 (b): Scenario 2 : Skill Development Component: Abstract for Cost estimates
Area in
Buildings Quantity Total Construction Cost
sq.m.
Academic Block 1000 2 147739913 14.77 Cr
Library & Seminar

600 1 44321974 4.43 Cr
Room
Administrative
900 1 55402467 5.54 Cr
Block
Workshops 2800 8 206835878 20.6 Cr
Instrumentation
400 1 29547983 2.95 Cr
Lab
Cafeteria 150 1 11080493 1.13 Cr
Total Cost : 536458282 53.64 Cr
Table 10.6: Scenario 2 : Total Project Cost for Convention centre & Skill Development
centre
Total Project Cost for Convention Centre and Skill Development Centre
Total Project Cost for Skill

53.64 Cr
Development Center
Total Project Cost for

101 Cr
Convention Center
Site Development Cost 16.66 Cr
Grand Total 171.4 Cr
59
The detailed costs for all the years is shown in Annexures
Table 10.7.(a): Scenario 2: Convention Centre: Abstract for Operations & Maintenance
Source: Authors
Component FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Annual
0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Maintenace
Man Power
1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88
Cost
Annual
Operational 0.09 0.09 0.01 0.01 0.01 0.011 0.01 0.01 0.01
Expenses
Grand Total 2.08 2.09 2.09 2.09 2.10 2.10 2.10 2.10 2.10
Table 10.7.(b): Scenario 2: Commercial centre: Abstract for Operations & Maintenance
Source: Authors
Component Area Units Rate per sq.m Cost
Annual Maintenace
Transformer, Generator 2647 sq.m 10.2 0.002
Light System 2647 sq.m 6.1 0.001
Lift 2647 sq.m 6.1 0.001
Chiller, Pump 2647 sq.m 6.1 0.001
AC 2647 sq.m 6.1 0.001
Fire Fighting System 2647 sq.m 4.1 0.001
Total Maintenance 0.012 Cr
60
Table 10.7.(c): Scenario 2: : Guest rooms Abstract for Operations & Maintenance
Source: Authors
Operational Year
Components
FY 29 FY30 FY31 FY32
Employee Benefits/Salaries 1 cr 1 1 1 1
@ 40%
Food/Beverages revenue from 0.029 0.037 45,995 55,112
f&b
@ 5% total
General Expenses 4592700 6490378.15 7977264.75 9558556.9
revenue
@ 3% total
Marketing Expenses 2755620 3894226.89 4786358.85 5735134.14
revenue
@ 5% total
Consumables 4592700 6490378.15 7977264.75 9558556.9
revenue
@ 2% total
Repairs & Maintenance 1837080 2596151.26 3190905.9 3823422.76
cost
Total Expenses 2.38 Cr 2.95 Cr 3.39 Cr 3.87 Cr
Table 10.7.(b): Scenario 2: Skill Development: Abstract for Operations & Maintenance
Source: Authors
Costs in Crores
Recurring Costs FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Employees
0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.29 0.30
Remuneration
Utility Charges 0.26 0.28 0.30 0.32 0.34 0.36 0.40 0.42 0.44
Gen.
Administration 0.0065 0.0069 0.0073 0.0078 0.0082 0.0087 0.0091 0.0095 0.0099
Expenses
Maintainance
0.0033 0.0035 0.0037 0.0040 0.0043 0.0045 0.0048 0.0052 0.0051
Costs
Library
0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010
Aquisitions
Supplies 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
TOTAL 0.50 0.53 0.56 0.59 0.64 0.68 0.73 0.78 0.83
61
Table 10.8: Scenario 2 Skill Dev. & Convention Centre Abstract for O & M
Source: Authors
Cost in Crores
Convention
2.08 2.09 2.10 2.12 2.13 2.13 2.14 2.15 2.16
Centre
Guest rooms 2.38 2.95 3.39 3.87 3.97 4.08 4.19 4.29 4.40
Commercial
0.011 0.012 0.013 0.015 0.017 0.018 0.019 0.021 0.022
complex
Skill
Development 0.50 0.53 0.56 0.59 0.64 0.68 0.73 0.78 0.83
Center
Total O & M 4.98 5.50 6 6.5 6.7 6.8 7 7.1 7.3
62
11. Project Benefits
The section discusses the project benefits (sale proceedings and revenue) as per the
scenario 2 built up calculations. Since it remains the same for the PMAY Component,
therefore the PMAY component has not been added here.
11.1. Sale Proceedings: MIG Component
Table 11.1 : Scenario 2 : Hotel Component: Sale Proceedings

Source: Authors
SALE PHASING
Market
TYPE A 85sq.m. 0.08
Increase
(Cr) 0.6 0.648 0.69984 0.7558272
No. of Units 172 172 172 172
FY 23 24 25 26 27 28 29 30
28 28 28 28
30 30 30 30
33 33 33 33
Total (Cr) 26 54 84 116 90 63 33
Market
TYPE B 110 sq.m. 0.08
Increase
(Cr) 0.85 0.918 0.99144 1.070755

No. of Units 86 86 86 86
FY 23 24 25 26 27 28 29 30
20 20 20 20
21 21 21 21
23 23 23 23
Total (Cr) 18 38 59 82 64 44 23
63
Market
TYPE C 95 sq.m. 0.08
Increase
0.881798
(Cr) 0.7 0.756 0.81648
4
No. of Units 39 39 39 38
FY 23 24 25 26 27 28 29 30
7 7 7 7
8 8 8 8
8 8 8 8
Total (Cr) 7 14 22 30 24 16 8
Market
TYPE D 110 sq.m. 0.08
Increase
1.007769
(Cr) 0.8 0.864 0.93312
6
No. of Units 39 39 39 38
FY 23 24 25 26 27 28 29 30
8 8 8 8
9 9 9 9
10 10 10 10
Total (Cr) 8 16 25 35 27 19 10
FY 0 1 2 3 4 5 6 7
Total (Cr) 58.63 121.95 190.34 263.78 205.15 141.83 73.44
64
Days Room
Hotel Rooms
open Nights
Hotel information 190 365 32,850
Occupancy
Occupancy rate 45% 50% 55% 60% 70% 80% 85% 85% 85%
Room nights
11.2. Revenue Generation: Hotel
0.0031 0.0035 0.0038 0.0042 0.0049 0.0055 0.0059 0.0059 0.0059

occupied
Revenue
65
Average daily room
Source: Authors
1,250 1,350 1,450 1,550 1,650 1,750 1,850 1,850 1,850

rate
Total room revenue 1.85 2.22 2.62 3.06 3.80 4.60 5.17 5.17 5.17
Other
Food & beverage 20% 0.78 0.94 1.11 1.29 1.60 1.94 2.18 2.18 2.18
Table 11.2 : Scenario 2 : Hotel Component: Revenue Generation
Other 5% 0.20 0.23 0.28 0.32 0.40 0.49 0.55 0.55 0.55
Total other revenue 0.98 1.17 1.38 1.61 2.00 2.43 2.73 2.73 2.73
Total revenue (Cr) 4.88 2.77 5.85 6.91 8.06 10.01 12.14 13.63 13.63
11.3. Revenue : Skill Development Centre
Table 11.3 : Scenario 2 : Revenue from Skill Development Centre
Skill Development Centre
Total no.
of power
Total number of
21 loom 3
Workshops
workshop
s
Occupancy of
50% 60% 75% 85% 85% 85% 85% 85% 85%
Workshops
Number of
Workshops 11 13 16 18 18 18 18 18 18
Occupied
Number of
powerloom
1 2 3 3 3 3 3 3 3
workshops
occupied
Revenue
workshop rent per

hour (5% annual 100 105 110 116 122 128 134 141 148
increase)
power loom
workshop
150 158 165 174 182 191 201 211 222
rent/hour (5%
annual increase)
Revenue from
workshop rent per 12,600 15,876 20,837 24,796 26036 27338 28705 30140 31647
day
Revenue from
powerloom 1,800 3,780 5,954 6,251 6564 6892 7237 7598 7978
workshop per day
Total Revenue from

14,400 19,656 26,791 31048 32600 34230 35941 37738 39625
rents per day
Other
Food and
Beverages
2,880 3931.2 5358 6210 6520 6846 7188 7548 7925
(@ 20% of
workshop revenue)
Other (@ 5% of
720 982.8 1340 1552 1630 1711 1797 1887 1981
workshop revenue)
Total Revenue of
skill development 0.54 Cr 0.74 Cr 1.00 Cr 1.16 Cr 1.22 Cr 1.28 Cr 1.35 Cr 1.42 Cr 1.49 Cr
center per year
66
11.4. Revenue : Convention Centre
The Convention Centre's major sources of revenue is auditorium, exhibition halls and
conference halls. The guest room revenue will be based on the events and the occupancy is
assumed to increase from 45% in initial years to a maximum occupancy of 75% in 4 years.
The commercial complex is also expected to generate the revenue through sale of shops
and the sale is phased over two years and the revenue is calculated till FY 39, as given in
Annexures.
Table 11.4 : Scenario 2 : Revenue from Convention Centre
CONVENTION CENTER AND SKILL DEVELOPMENT CENTER

Operational Year
Component
FY 29 FY 30 FY 31 FY 32 FY 33
Convention Centre
Auditorium/Function Hall 3400000 4,284,000 4,488,000 4,692,000 4,896,000
Conference Halls 4800000 10584000 11088000 11,592,000 12096000
Exhibition Hall 2600000 6552000 6864000 7,176,000 7488000
Dining Hall and Kitchen 16800000 19845000 20790000 21,735,000 22680000
Total 2.76 Cr 4.12 Cr 4.32 Cr 4.51 Cr 4.71 Cr
Guest Room
Occupancy of Guest Rooms 45% 55% 65% 75% 75%
No of rooms occupied per
102.06 124.74 147.42 170.1 170
event
Days occupied per event 3 3 3 3 3
Revenue
Room rent per day (5% annual
1200 1250 1300 1350 1400
increase)
Revenue from guest rooms per
122,472 155,925 191,646 229635 238000
day
Total revenue from guest
367416 467775 574938 688905 714000
rooms per event
Other
Food and Beverages (@ 20% of
73,483 93,555 114,988 137,781 142800
room revenue)
Other (@ 5% of room revenue) 18370.8 23388.75 28746.9 34445.25 35700
Total revenue from other
91,854 116,944 143,735 172,226 178500
sources
Total revenue per event 459,270 584,719 718,673 861,131 892500
Total revenue per year 9.18 Cr 12.98 Cr 15.95 Cr 19.11 Cr 19.81 Cr
Commercial Centre
Shops 7.87 Cr 7.87 Cr 0 0
Parking
On ground parking 1505000 7770000 7770000 7770000 7770000
@5% 1505000 8158500 8566425 8994746 9444484
Total Revenue (Convention) 17.21 21.67 16.81 20.01 20.75
67
11.5. Total Revenue : Convention Centre and Skill Development Centre
Table 11.5 : Scenario 2 : Total Revenue from all components of Skill Development and
Convention Centre
Operational Year
Component
FY 29 FY 30 FY 31 FY 32
Convention
2.76 4.12 4.23 4.51
Centre
Guest House 9.18 12.98 15.95 19.11
Commercial
5.25 5.25 0 0
Centre
Skill
Development 0.54 0.73 1.04 1.16
Centre
Parking 0.15 0.81 0.85 0.89
Total Revenue 19.97 25.80 21.13 24.54
Operational Year
Component
FY 33 FY 34 FY 35 FY 36 FY 37
Convention
4.71 4.71 4.71 4.71 4.71
Centre
Guest House 19.81 20.52 21.22 21.93 22.64
Commercial
0 0 0 0 0
Centre
Skill
Development 1.22 1.28 1.34 1.41 1.48
Centre
Parking 0.94 0.99 1.04 1.09 1.14
Total
25.47 26.23 26.99 27.75 28.51
Revenue
68
12. Benefit Cost
Analysis
12.1. Phasing: Project Cost
The phasing of the Construction for the project is the same for the second scenario as shown
in Table 8.2 in section 8.1 of this report.
Table 12.1 shows the phasing of Costs over the total project period of 15 years from FY 23 to
FY 37 for Scenario 2. Operating phase of the Hotel and Skill Development centre will start
from FY 29 and the costs in this period is the operation cost.
Table 12.1 : Scenario 2: Phasing of Project Cost (Capex, Opex, Site Dev. and Transit Accommodation)
Source: Authors
Total Expenditure: Capex, Opex, Site Development and Transit Accommodation (in Crores)
Construction Phase Operating Phase

Sr
Component FY FY FY FY FY
No FY 24 FY 25 FY 26 FY 27 FY 29 FY 32 FY 33 FY 34 FY 35 FY 36
23 28 30 31 37
PMAY
1 49.59 56.68
Component
2 MIG Housing 6.52 152.24 162.90 174.30 185.52
3 Hotel 0.65 63.96 62.08 62.08 4.24 4.54 4.85 5.19 5.56 5.95 6.36 6.81 7.29
Skill
Development
4 6.62 55.05 55.05 44.64 4.98 5.50 5.89 6.30 6.74 7.21 7.71 8.25 8.83
& Convention
Center
Total Capital
56.10 208.92 170.17 293.31 302.64 106.72
Cost
Total
Operating 9.22 10.04 10.74 11.49 12.30 13.16 14.08 15.06 16.12
Cost
12.2. Phasing: Project Revenue, Grants & Sale Proceedings

The phasing of sale proceedings, grants and revenue for scenario 2 has been shown in Table
12.2
69
Revenue/ Sale Proceedings Phasing (in Crores)
Sr No Component
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Sale
16.80 28.80
Proceedings
1 PMAY Component
Grants 20.00 20.00
Sale
2 MIG Housing 58.63 121.95 190.34 263.78 205.15 141.83 73.44
Proceedings
70
Source: Authors
3 Hotel Revenue 4.88 5.22 5.59 5.98 6.40 6.84 7.32 7.84 8.38
Skill Development
4 & Convention Revenue 19.97 25.80 21.13 24.54 25.47 26.23 26.99 27.75 28.51
Center
Table 12.2 : Scenario 2: Phasing of Sale Proceedings, Grants and Revenue
Total 78.63 158.75 219.14 263.78 205.15 141.83 98.29 31.02 26.72 30.51 31.87 33.07 34.31 35.58 36.89
12.3. Discounted Cashflow Analysis
The Discounted Cashflow Analysis done for Scenario 2 has been shown in Table 12.3 which
the same assumptions as Scenario 1.
Table 12.3 : Phasing of Sale Proceedings, Grants and Revenue
Year FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32 FY 33 FY 34 FY 35 FY 36 FY 37
Project
-56.10 -208.92 -170.17 -293.31 -302.64 -106.72 -9.22 -10.04 -10.74 -11.49 -12.30 -13.16 -14.08 -15.06 -16.12
Outflow
Project
78.63 158.75 219.14 263.78 205.15 141.83 98.29 31.02 26.72 30.51 31.87 33.07 34.31 35.58 36.89
Inflow
Net Cash
22.53 -50.17 48.97 -29.53 -97.49 35.11 89.07 20.98 15.98 19.02 19.58 19.92 20.23 20.52 20.78
Flow
Cumulative
22.53 -27.64 -1.20 19.44 -127.02 -62.38 124.18 110.06 36.97 35.01 38.60 39.49 40.15 40.75 41.30
Cash Flows
Discount
10%
Rate
Discount
1.00 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39 0.35 0.32 0.29 0.26
factor
Present
22.53 -45.61 40.47 -22.19 -66.59 21.80 50.28 10.77 7.46 8.07 7.55 6.98 6.45 5.94 5.47
Value of NCF
Cum. Disc.
22.53 -23.08 17.39 -4.80 -71.38 -49.58 0.70 11.46 18.92 26.99 34.53 41.52 47.96 53.91 59.38
Cash Flows
71
Figure 12.1 : Scenario 2: Graph showing Total Outflow, Inflow and Cumulative
Cashflows
Source: Authors
As per the calculations shown in Table 12.3. the Internal Rate of Return (IRR) of the project
comes out to be 39% and the Net Present Value (NPV) is calculated to be 59.38 Crores.
InIt can be seen that the project starts making profit in FY 29, which is the first financial year
after the completion of the construction of all the components.
This shows that the project will have feasible rate of return in this scenario as well and thus is
a viable project.
12.4. Phasing: Benefit Cost Ratio
The benefit-cost ratio indicates the relationship between the cost and benefit of project or
investment for analysis as it is shown by the present value of benefit expected divided by
present value of cost which helps to determine the viability and value that can be derived
from investment or project. Here as well the present values of benefit and present values of
cost are calculated and eventually BCR (Benefit Cost Ratio) is calculated.
Benefit Cost Ratio (BCR) = Σ Present Value of benefit expected from the project/ Σ
Present Value of cost of the project
BCR = 982.06/ 922.69
BCR = 1.06
The BCR value greater than 1 shows that the NPV is positive and project will meet expected
outcome.
72
13. Project
Institutional
Framework
12.1. institutions involved in the Implementation of the project
The Project being a PMAY ISSR Project, will be undertaken by Ujjain Municipal Corporation
(UMC), which is the concerned Urban Local Body. A City Level Coordination Committee
constituted under the chairmanship of Mayor of Municipal Corporation to monitor the
progress and ensure timely implementation of planned activities. Also, Urban Development
and Environment Department (UDED) is the State Level Nodal Agency (SLNA) in the state of
MP for the implementation of the project.
The project will be tendered to a Private Developer for carrying out the Design and
Construction. The Private will be carrying out the following works:
Project Feasibility Study
Project Engineering Design
Construction Works
O&M of Hotel and Skill Development and Convention Centre
Post completion of construction, the components will be transferred to UMC, except for
the MIG Housing Component which will be constructed and sold by the private developer.
The construction of the components will be carried out in the following manner:
1. The PMAY component will be constructed first and the Hira Mill Residents will be
rehabilitated.
2. Construction of the MIG Housing will begin from the second financial year, i.e. FY 24.
3. Construction of the Hotel and Skill Development and Convention Centre will begin after
the PMAY construction is completed, i.e., FY 25.
The Operation and Maintenance of the Skill Development and Convention Centre and the
Hotel will be carried out by the private developer till the cost recovery has been made.
Post which it will be transferred back to the Government.
73
14. Appraisal &
Conclusion
A proposal for affordable housing units for EWS and LIG income groups has been made
under PMAY, MIG housing, hotel, convention centre, and skill development. The property
is located in the city centre, near to the railway station and other significant tourist
attractions. Given the project's prime location, it is expected to generate the desired
demand.
The project takes into account the economically weaker section, their occupation, and their
aspirations for higher living conditions. The one-of-a-kind convention centre and skill
development centre in Ujjain, located in the city's center, has a high potential for growth
and will boost economic development. In addition, the convention centre and skill
development centre are planned to produce jobs for local inhabitants. As a result, the
project not only offers housing but also improves the lives of the local communities.
There are two different scenarios considered for calculating and analysing the details of the
project akin project cost and revenue and sale proceedings.
For scenario I:
PMAY, MIG Housing, Hotel and Skill Development, and a Convention Center are the four
components of the project. The total cost and sale proceedings for the PMAY component
are the same in both scenarios. The total cost of the PMAY component is 102.56 crores;
MIG is 462.03 Crores; Convention Center and Skill Development Center are 147.59 crores;
and Economy Hotel is 127.18 crores. This adds up to a total project cost of 840.1 crores.
The sale proceedings and grants for the PMAY component will be distributed over the first
three years, contributing around 85.6 crores in total; similarly, the sale procedures for the
MIG component will gain approximately 1055.12 Crores. Revenue generation for the hotel,
Skill Development Centre, and Convention Centre will begin in fiscal year 29 with a rate of
rise based on occupancy and event number assumptions, respectively.
According to financial study, the project's IRR is calculated to be 25%. As a result, the
project appears to be viable. The identical conclusion is supported by a positive NPV of
40.16. A further total of the current values of benefits and expenses is being computed. The
Benefit Cost Ratio is then calculated to assess project viability. The project's BCR value of
1.06 indicates that it is financially feasible.
74
For scenario II:
PMAY, MIG Housing, Hotel and Skill Development, and a Convention Center are the four
components of the project. The total cost and sale proceedings for the PMAY component
are the same in both scenarios. The total cost of the PMAY component is 102.56 crores;
MIG is 681.5 Crores; Convention Center and Skill Development Center are 171.40 crores;
and Economy Hotel is 188.76 Crores. This adds up to a total project cost of 1144.22 Crores.
The sale proceedings and grants for the PMAY component will be distributed over the first
three years, contributing around 85.6 crores in total; similarly, the sale procedures for the
MIG component will gain approximately 747.39 crores. Revenue generation for the hotel,
Skill Development Centre, and Convention Centre will begin in fiscal year 29 with a rate of
rise based on occupancy and event number assumptions, respectively.
According to financial study, the project's IRR is calculated to be 35%. As a result, the
project appears to be viable. The identical conclusion is supported by a positive NPV of
59.38. A further total of the current values of benefits and expenses is being computed. The
Benefit Cost Ratio is then calculated to assess project viability. The project's BCR value of
1.06 indicates that it is financially feasible.
Risks and Limitations:
The project associates high end investment of around 800 to 1000 Crores approximately.
The project constitutes a lot of complexities due to four diverse components from
affordable housing to commercial components akin hotel. The second risk associated with
the project is that the assumption saying trend will continue for demand of high to mid rise
development in Ujjain and the trend will continue upto 15 years. Another one is that the
Hotel occupancy rate and Skill Development Center and Convention Center occupancy
rate is dependent on tourist inflow. Lastly there will be financial stress on developer for
constructing revenue generating components.
There were several limitations for the study. Sensitivity analysis was one of them due to
unavailability of relevant data and time constraints. Secondly the overall project doesn't
follow the traditional approach wherein around 50-60% of total project cost will be spent in
initial years which result in negative NCF for initial years. Instead the present NCF is the
result of bell curve graph distribution pertaining to MIG component cost and sale
proceedings phasing. Thirdly due to cross subsidization the NCF depicts influence of all
components making it perplex to decide phasing of debt equity.
75
Conclusion:
Analysis of both the scenarios developed for this project, it can be observed that both
options will be financially viable as both have a positive NPV and Project IRR greater than
16 %, which is the average interest rate on business loan in India (Average calculated from
the rates of HDFC Bank, Axis Bank, IDFC First Bank, ICICI Bank and Tata Capital Finance).
However, since scenario 2 takes an optimistic approach and therefore has a higher project
cost of over 1000 crore, the risks associated with it are also higher even though it results in a
higher Project IRR.
Therefore, after comparing both scenarios, it can be said that proceeding with the Scenario
1 will be the more financially viable alternative because the assumptions used for the same
portray the ground reality. Furthermore, the costs connected with it are relatively lower,
resulting in lower risk, putting less financial burden on the developer and having a higher
probability of completion and profit generation. As a result, adopting scenario 1 will be a
feasible and implementable project and thereby is recommended.
76
References
1. Census of India 2011
2. https://smartcities.data.gov.in/
3. Ujjain Draft Master Plan 2035
4. Classification of neighbourhoods according to analysis from websites like prop
tiger, 99acres, realestateindia, housing, RERA
5. PMAYG (Pehel) Document

6. Hindustan Times news articles
7. Madhya Pradesh Bhumi Vikas Rules, 2012 and MP Town and Country Planning Act,
2012
8. Slum Areas of Ujjain : As on 2018 (Smart City Document), CDP Ujjain
9. Urbanisation, Health and Poverty: Special reference to Ujjain City by

https://www.researchgate.net/profile/Anjali-Dash
10. Ujjain City Water Supply, Sanitation and Hygiene (WASH) Situational Analysis
Report by Mr. Rahul Banerjee (2016)

11. PMAYU and PMAYG physical progress reports
12. https://www.re-thinkingthefuture.com/case-studies/a3735-belapur-housing-by-
charles-correa-a-sense-of-home-and-community/
13. DPR for PWD Rest House Patiala

14. https://www.hdfcbank.com/personal/borrow/popular-loans/business-loan/fees-
and-charges
15. https://www.paisabazaar.com/business-loan/interest-rates/
77
Annexures
Annexure A: ABSTRACT SHEET FOR COST ESTIMATES: PMAY
Sr. No. Sub Head Amount in Rs. Amount in Crores
BUILDING WORKS
1 Civil Works
a Foundation 43530915.84 4.35
b Foundation Stair Case 1589631.18 0.16
c Superstructure Panel 190587668.79 19.06
d Superstructure upto finishing 224128667.35 22.41
e Staircase 14488776.69 1.45
f Terrace 8050032.54 0.81
Total for Building Work 482375692.16 48.24
2 Sanitary and Water Supply (12%) 57885083.06 5.79
3 Electrical Works (12.5%) 60296961.52 6.03
Sub-Total (A) 600557519.96 60.06
INFRASTRUCTURE WORKS 0.00
1 Boundary Wall 1946734.90 0.19
2 Earth Filling 5544863.42 0.55
3 Road and Pavement 13622230.92 1.36
4 Septic Tank 4569418.43 0.46
5 External Water Supply and Sewerage 9951198.28 1.00
6 Drainage & Disposal 12318207.88 1.23
7 External Electrification Work 9715019.34 0.97
8 Plinth Protection 1026130.28 0.10
Sub-Total (B) 58693803.45 5.87
Total(C=A+B) 659251323.41 65.93
D=Cost Index @ 7% Above Schedule of
46147592.64 4.61
Rates (on C)
Total (C+D) 705398916.05 70.54
Provision for Work Contract Tax (WCT) @
1 35269945.80 3.53
5%
2 Provision for Labour cess @1 % 7053989.16 0.71
3 Provision for Insurance Charges 0.52% 3668074.36 0.37
TOTAL (E) 751390925.47 75.14
0.00
Contingency (3%) 22541727.76 2.25
Planning & Designing charges (7.5%) 56354319.41 5.64
Overheads (7%) 52597364.78 5.26
GRAND TOTAL 882884337.42 88.29
Annexure B: ABSTRACT SHEET FOR COST ESTIMATES: CONVENTION CENTRE
Component Cost per sq.m Cost

Site Development 3680 66240000
Civil work (Convention centre
23,760 263023200
and Hotel)
Cost of Furnishing
35,640 118360440
(Convention)
Cost of Furnishing (Hotel) 39,600 306860400
Cost of Equipments 10000000
Total Construction Cost
764484040
(A)
Commercial Centre
Cost of Furnishing 28,650 63201900
Civil work 22,920 50561520
Total Construction Cost
113763420
(B)
Total (A+B) 878247460
Contingencies
Project Development Cost @1% of Construction cost 8782474.6
Launch marketing @1% of Construction cost 8782474.6
Other pre-operational
@1% of Construction cost 8782474.6
expenses
Landscaping 5940 74844000

Total project cost 97.89 Cr
Cost excl site dev 91.31 Cr
(inflation @7% for all costs)
Annexure C: Cost Estimates for Skill Development Centre
Construction Cost
(Including Furniture &
Buildings Area in sq.m. Quantity Cost per sq.m Fixtures )
(A)
Academic Block 1000 2 51654 103307400
Library & Seminar

600 1 51654 30992220
Room
Administrative Block 900 1 51654 46488330
Workshops 300 3 51654 46488330
Instrumentation Lab 400 1 51654 20661480
Cafeteria 150 1 51654 7748055
Total Cost A: 255685815
Building Works
Buildings Electrical Works Sanitary and Water Supply
12% of A 12% of A
Academic Block 12396888 12396888
Library & Seminar Room 3719066.4 3719066.4
Administrative Block 5578599.6 5578599.6
Workshops 5578599.6 5578599.6
Instrumentation Lab 2479377.6 2479377.6
Cafeteria 929766.6 929766.6
Total Cost B: 30682297.8

Infrastructure Cost
External
Road and Drainage &
Buildings Boundary Wall Electrification
Pavement Disposal
Work
2.73% of A 1.21% of A 1.30% of A 1.75% OF A
Academic Block 2820292.02 1250019.54 1342996.2 1807879.5
Library & Seminar Room 846087.606 375005.862 402898.86 542363.85
Administrative Block 1269131.409 562508.793 604348.29 813545.775
Workshops 1269131.409 562508.793 604348.29 813545.775
Instrumentation Lab 564058.404 250003.908 268599.24 361575.9
Cafeteria 211521.9015 93751.4655 100724.715 135590.9625
Total Cost C: 17872438.47
Other Costs
Provision Provision for Planning &
Provision for Work
for Labour Insurance Contingency Designing Overheads
Contract Tax
cess Charges charges
5% of A 1% of A 0.52% of A 3% of A 7.50% 7%
5165370 1033074 537198.48 3099222 7748055 7231518
1549611 309922.2 161159.544 929766.6 2324416.5 2169455.4
2324416.5 464883.3 241739.316 1394649.9 3486624.75 3254183.1
2324416.5 464883.3 241739.316 1394649.9 3486624.75 3254183.1
1033074 206614.8 107439.696 619844.4 1549611 1446303.6
387402.75 77480.55 40289.886 232441.65 581104.125 542363.85
Total Cost D: 457754315
Total Project Cost for Skill Development Centre
Total Cost A 255685815
Total Cost B 61364596
Total Cost C 17872438
Total Cost D 61415733
Grand Total 396338582
39.63 Cr.
ANNEXURE D : O&M Convention Centre (Scenario : 1)
Annual Maintenace
Transformer, Generator 13276 sq.m ₹10.2 135415
Light System 13276 sq.m ₹6.1 80,983
Stage System 13276 sq.m ₹40.7 540333
AC 13276 sq.m ₹6.1 80,983
Sub Total Maintenance 0.0837714
Man Power Cost
General Manager 1 Nos ₹20,00,000.00 0.2
Chief Engineer 1 Nos ₹17,00,000.00 0.17
Marketing & Public Relations 2 Nos ₹17,00,000.00 0.34
Technical (IT) 2 Nos ₹7,00,000.00 0.14
Technical (Sound & Light) 3 Nos ₹7,00,000.00 0.21
Technical (Stage) 3 Nos ₹7,00,000.00 0.21
Finance and Accounting 1 Nos ₹6,00,000.00 0.06
General Administration & HR 1 Nos ₹6,00,000.00 0.06
Technical (Utility, Garden, Cleaning) 13 Nos ₹2,33,000.00 0.3029
Technical (Security with 3 shifts a

4 Nos ₹4,91,000.00 0.1964
day)
Sub Total Man Power 1.89
Annual Operational Expenses
Advertisement Expenses 13276 sq.m ₹40.2 0.0533695
Landscape maintenance 1% of revenue 0.39
Sub Total Operational Expences 0.4433695
Grand Total 2
ANNEXURE E : O&M Convention Centre (Scenario : 2)
Annual Maintenace
Transformer, Generator 15931.2 sq.m 10.2 162498.24
Light System 15931.2 sq.m 6.1 97,180
Stage System 15931.2 sq.m 40.7 648399.84
AC 15931.2 sq.m 6.1 97,180
Sub Total Maintenance 1005258.72
Man Power Cost
General Manager 1 Nos ₹20,00,000 0.20
Chief Engineer 1 Nos ₹17,00,000 0.17
Marketing & Public Relations 2 Nos ₹17,00,000 0.34
Technical (IT) 2 Nos ₹7,00,000 0.14
Technical (Sound & Light) 3 Nos ₹7,00,000 0.21
Technical (Stage) 3 Nos ₹7,00,000 0.21
Finance and Accounting 1 Nos ₹6,00,000 0.06
General Administration & HR 1 Nos ₹6,00,000 0.06
Technical (Utility, Garden, Cleaning) 13 Nos ₹2,33,000.00 0.30
Technical (Security with 3 shifts a

4 Nos ₹4,91,000.00 0.19
day)
Sub Total Man Power 1.88
Annual Operational Expenses
Advertisement Expenses 15931.2 sq.m 40.2 0.06
Landscape maintenance 1% of revenue 0.02
Sub Total Operational Expences 0.09
Grand Total 2.08 Cr

MIG Construction Phasing (Scenario 2)
TYPE A 85sq.m. Inflation 0.07
(Cr) 0.448 0.479 0.513 0.549
No. of Units 172 172 172 172
FY 2023 2024 2025 2026 2027 2028 2029
Cost 77.0966 82.4934 88.2679 94.4466 342.3045
TYPE B 110 sq.m. Inflation 0.07
(Cr) 0.45896 0.49109 0.52547 0.56225
No. of Units 86 86 86 86
FY 2023 2024 2025 2026 2027 2028 2029
Cost 39.4158 42.1749 45.1272 48.2861 175.0039
TYPE C 95 sq.m. Inflation 0.07
(Cr) 0.45 0.48 0.52 0.55 0.59
No. of Units 39 39 39 38
FY 2023 2024 2025 2026 2027 2028 2029
Cost 17.6766 18.9140 20.2379 21.2355 78.0639
TYPE D 110 sq.m. Inflation 0.07
(Cr) 0.46287 0.49528 0.52995 0.56704 0.60673
No. of Units 39 39 39 38
FY 2023 2024 2025 2026 2027 2028 2029
Cost 18.0521 19.3158 20.6679 21.5476 79.5833
0.6508 162.898 174.300 675.6065

152.2411 185.5158
29724 0 9 455

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‘HIRA MILL KI CHAWL’

SLUM REDEVELOPMENT PROJECT,

DETAILED PROJECT REPORT

Subject: Projectisation of Urban Development

SECTOR: HOUSING B.PLAN | SEM VII

03 — Context & Project Rationale

04 — Project Concept & Scope

08 — Benefit Cost Analysis

12 — Benefit Cost Analysis

13 — Project Institutional Framework

14 — Appraisal & Conclusion

Three objectives have been identified in order to achieve the aim:

Figure 1.1. Methodology

The limitations faced include the following:

which is causing prices to rise.

No of Notified Slums : 159

Figure 2.3: Slums in Ujjain

Following is the existing Institutional Set-up pertaining to Slum Improvement Projects. In

Ujjain Municipal Corporation (UMC):

Directorate of Town and Country Planning (T&CP):

Madhya Pradesh Housing Board (MPHB):

MPHB, a Government of MP organization, is engaged in development and construction

State Level Steering Committee:

National Textile Commission (NTC):

Hira Mill ki Chal in Ward no.17

Hira Mill ki Chal

Figure 2.5: Site Surrounding Hira Mill ki Chal

Figure 2.6: Evolution of Hira Mill Area over years

Figure 3.1: RERA projects in Ujjain

Figure 3.3: Percentage of preferred housing typologies in Ujjain

Figure 3.4: Percentage of people's

Figure 3.6: Percentage of people living

Figure 3.8: Development around Hira Mill

Lala Rajpat Rai M

Figure 3.9: Existing Built use (Slum and surrounding areas)

From the primary survey it was found

Figure 3.11. Economic Activities in the Slum

There is a flyover passing

Temple with seating space Community Hall

Figure 3.12: Community spaces in the Slum

In the survey, the respondents were

In Hira Mill ki Chawl, it was found that 50%

Figure 3.15: Zoning of Hira Mill ki Chawl (Based on Ownership)

Figure 3.16: Mill Worker Quarters Figure 3.17: Unauthorized Dwellings

Figure 4.1: Component wise Division of Study Area

Figure 4.2: In-Situ Slum Redevelopment: Rationale

Bhubaneshwar Affordable Housing

The strategy used for the project is Public-Private

months. The transfer of the developer component i.e.

Shukhobrishti, New Town, Kolkata

The project was developed under Public-Private

Plot Size (sq. m) 468300 sq. m

Space for Utilities and services and circulation 187320 sq. m

Actual Plot size for development 280,980 sq. m

Permissible FAR for ISSR 1.75

Total Permissible Builtup Area 491715 sq. m

4.5. PMAY ISSR Component: Calculations

Table 4.2: Built up Calculations of PMAY Component

No. of No. of Mill No. of other

10000 5 2000 560 1440

Carpet No of No of No of Total Plot Total Built Total Built Up

75 560 280 2 148.5 41580 111 62160