• January 08, 2025
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New & Renewable Energy Development Corporation of Andhra Pradesh Ltd.,

(A State Govt. Company)

(Formerly Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd.,)

Cost Appraisal

New & Renewable Energy Development Corporation of Andhra Pradesh Ltd.

Cost Appraisal


Civil cost appraisal of hydro electric projects

The estimate of H.E. Projects is framed in accordance with IS: 4877-1968 `Guide for Preparation of Estimates for River Valley Projects'. Accordingly the `Hydro Electric Installation' is dealt in Unit-III of the code. This unit is divided into Minor heads under `DIRECT Charges' & `Indirect Charges'.

Direct Charges:

Direct charges include I-Works, II-Establishment, III-Tools & Plants, IV-Suspense and V-Receipts and Recoveries. Indirect Charges include (i) Captialised value of abatement of land revenue (ii) Audit & account charges.

I. The provisions from `A'-Preliminaries to `Y' Losses on Stock fall Under-I Works which is further subdivided into detailed sub-heads accordingly to the nature and type of works. These are illustrated as under:-

1. `A'-Preliminary

The items covered are Surveys and Investigations, Model Studies, Preparation/Printing of Detailed Project Reports(DPR). The provision under this sub-head should be limited to 1% to 2% of I-Works.

2. `B'-Land

This item covers the provision for land acquisition, relocation of communication, R&R Plan. There is no limit for this head.

3. `C'-Works

This is intended to cover provisions for Head Works consisting of dam, spillway, pick up weir, trench weir, barrage etc.

4. 'J'-Power Plant Civil Works

This shall include the cost of Intake Structure, desalting Chambers, Head Race Tunnel, Surge Shaft, Pressure Shaft, Penstock, Power House, Tail Race Tunnel, Switchyard and Hydro Mechanical Works.

5. `K'-Buildings

Includes the cost for buildings for execution of project both for civil & E&M works. The provision is limited to 5% to 8% of I-Works.

6. `M'-Plantation

Provision for avenue trees and arboricultural around the Power House, downstream of dam etc. are covered. No limit is suggested.

7. `O'-Miscellaneous

Provisions for Miscellaneous works (capital and maintenance) is charged under this head which is generally limited to 4% of I-Works.

8. `P'-Maintenance

Provision towards maintenance of ongoing works during construction is covered. This is limited to 1% of I-Works less A, B and Q.

9. `Q'-Special T&P

Provision towards the cost of construction equipment and inspection vehicles is covered here. This is generally charged as 25% of capital cost of construction machineries and 100% cost of the inspection vehicles.

10. `R'-Communications

The access roads to dam site, Power house, quarry, railway siding etc. is covered in this sub-head. There is no limit prescribed.

11. `X'-Environment & Ecology

The cost towards environment and ecological impact due to the project is covered here. There is no limit to this provision.

12. `Y'-Loses on Stock

Provision under the sub-head is generally at 0.25% of cost of I-Works.

II. Establishment

The provision towards the cost of engineering, supervision and administrative services is covered under this head. This is in the range of 8% to 10% of I-Works excluding the cost on `B' Land.

III. Tools and Plants

The provision towards the cost of engineering, supervision and administrative services is covered under this head. This is in the range of 8% to 10% of I-Works excluding the cost on `B' Land.

IV. Suspense

The provision under this head is kept NIL.

V. Receipts and Recoveries

This is meant to account for the estimated recoveries by way of resale or transfer of temporary buildings and special T&P. Recoveries shall be as under:-
Temp buildings = 15% of the capital cost
Special T&P = 18.75% of the capital cost
Inspection Vehicles = 25% of the cost of vehicles

Indirect charges

Capitalised value on abatement of land revenue:- This is taken as 5% of the cost of agricultural land or 20 times of the land revenue cost whichever is more. Audit & account Charges: This is taken as 1% of cost of I-Works.

Completion cost

The completion cost is arrived at by phasing out the project cost based upon envisaged completion period and allowing an escalation due to inflation on material & labour. The component of interest during construction is also taken into account on loan arranged from external sources.