13. COST ESTIMATES AND FINANCIALS · 2019-02-13 · works, rolling stock, environmental protection,...
Transcript of 13. COST ESTIMATES AND FINANCIALS · 2019-02-13 · works, rolling stock, environmental protection,...
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐1
1133.. CCOOSSTT EESSTTIIMMAATTEESS AANNDD
FFIINNAANNCCIIAALLSS
13.1 CAPITAL COSTS
13.1.1 Coverage
Cost estimate for Varanasi Metro corridors (Corridor‐I from BHEL to BHU and Corridor‐II from
Benia Bagh) has been prepared covering civil, electrical, signaling and telecommunications
works, rolling stock, environmental protection, rehabilitation, etc. at Jan’ 2016 price level.
While preparing the capital cost estimates, various items have generally been grouped under
three major heads on the basis of (i) Route km length of alignment, (ii) Number of units of that
item and (iii) Item being an independent entity. All items related with alignment, construction,
permanent way, Third Rail, Signaling & Telecommunication, whether in main lines or in
maintenance depot, have been estimated at rate per Route km/km basis.
Cost of station structures, other electrical services at these stations and Automatic Fare
Collection (AFC) installations at all stations have been assessed in terms of each station as a
unit. Similarly, for items like Rolling stock costs have been estimated in terms of number of
units required for each item. In remaining items, viz. land, utility diversions, rehabilitation, etc.
the costs have been assessed on the basis of each item, taken as an independent entity.
In order to arrive at realistic cost of various items, costs have been assessed on the basis of
recently awarded rates of Lucknow Metro, DPRs of DMRC Ph‐IV, Lucknow and other various
Metros and suitable escalation factor has been applied to bring these costs to Jan’ 2016 price
level.
Basic cost is exclusive of various taxes and duties viz. custom duty, excise duty, Sale tax, VAT
etc. and details of taxes and duties are worked out separately. Current rates of various taxes
and duties have been taken into consideration and taxes / duties have been applied as per
prevalent practice of DMRC.
13.1.2 Land Requirement
a) Finalization of alignment, location of stations, entry / exits etc. has been done with the
objective of keeping land requirement to the bare minimum. For this purpose, alignment,
stations, depots, parking and Property Development (PD) have been planned in the State
Government land unless and until it becomes unavoidable to plan these facilities in Central
Government land or private land. Common Depot for both Corridor‐I & Corridor‐II has
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐2
been planned in the Non‐agricultural land of Ganeshpur area (Private land). As Varanasi city
is very congested, most part of both the corridors is planned underground and stations are
proposed in open land. The summary of land requirement for Corridor ‐ I & II is as under :‐
TABLE 13.1: LAND & STRUCTURES REQUIREMENT (IN HECTARES) FOR CORRIDOR‐I
Ownership Purpose Permanent
LandTemporary
LandStructures (Floor area)
Central Govt (Northern Railway)
Alignment, Station etc 0.07 0.40 0.05
State Govt
Alignment, Station etc 1 2.6 0.2633
Private
Alignment, Station etc 1.05 2.5 0.52
Depot (Ganeshpur) 13.2
0 0.5
Casting Yard 0 6 0
RSS 0.3 0 0
Total 14.55 8.5 1.02
TABLE 13.2: LAND & STRUCTURES REQUIREMENT (IN HECTARES) FOR CORRIDOR‐II
Ownership Purpose Permanent
LandTemporary
LandStructures (Floor area)
Central Govt Alignment, Station etc 0.14 0 0.0242
State Govt
Alignment, Station etc 0.8 2.1 0.105
RSS 0.3 0 0
Total 1.1 2.1 0.105
Private
Alignment, Station etc 0.13 0 0.18
Casting yard 0 4 0
Total 0.13 4 0.18
b) The land area for piers of elevated alignment, elevated stations falling over the existing
road and entry/exit falling on road / State Government land has not been accounted for in
the land requirement and costing as present land use is not getting affected by these
facilities. Land requirement for other metro utilities like ramp, off the road elevated
stations, depot, RSS, ancillary buildings etc. have been accounted as far as per details in
subsequent paras.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐3
c) Rate of Central Govt. land (Northern Railway at Varanasi Cantt for Corridor‐1 and Post
office at Sarnath for Corridor‐2), required on permanent basis has been taken as Per Circle
rates ‐ 01st Aug'15, published by Collectorate, Varanasi. No solatium has been applied to the
basic land cost. Cost of Passenger Reservation System (PRS) at Varanasi Cantt. including
cost of structure, electrical and S&T items, terminals etc has been taken as Rs. 3.0 crores as
per discussion with CRIS.
d) Rate of Central Govt. land (Northern Railway at Varanasi Cantt), required on temporary
basis for 3 years construction period, has been taken @ 6% Per annum of Circle rates ‐ 01st
Aug'15, published by Collectorate, Varanasi. No solatium has been applied to the basic land
cost.
e) Rate of State Govt. Land required on permanent basis has been taken from DPR for
Lucknow Metro with updation. No solatium has been applied to the basic land cost. In case,
State Govt. is in a position to provide its land free of cost or at reduced rates, it will further
improve the financial statistics of the project.
f) Cost of structures for rehabilitation of squatters at Tulsi Manas Mandir has been taken as
Rs. 25 crore per Hectare. Rehabilitation of squatters is required as per norms of
International Funding Agencies.
g) Rate of Private land & non commercial structures has been taken from Circle rates ‐ 01st
Aug'15, published by Collectorate. Above this, 100% solatium has been applied as per
LARRA. No administrative cost is added towards land acquisition activities, as it is
understood that this activity shall be carried out by State Govt. from its own resources.
h) On lines with DPR for Kanpur MRTS, efforts have been made to provide parking for
maximum possible stations. To make the project financially viable, property development
has been proposed on suitable land pieces on preliminary stage. Moreover, in line with DPR
for Lucknow Metro, cost of land towards parking cum PD is not loaded to the cost estimates
and this cost will be borne by State Govt. separately. Details of land required for parking
cum PD is mentioned separately in relevant chapter.
i) As advised by LMRC, depreciated rates for State Govt. structures have been taken after
applying maximum allowable depreciation of 60%.
j) Rate of private commercial structures including land is calculated as 300 x specified
monthly rent, published by Collectorate Varanasi, August' 15. 100% Solatium has been
applied to basic cost of structures.
k) Annual cost of private land required on temporary basis (for construction of U/G stations at
University, RBS college etc.) is calculated as 6% of corresponding circle rate of that locality.
Construction period is taken as 3 years. No solatium has been applied to basic land cost.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐4
l) The total cost of Land works out to be Rs. 438.47 Crores for Corridor‐I and Rs. 36.99 Crores
for Corridor‐II.
13.1.3 Items other than Land: Cost of items other than land is based upon LAR / DPR
rates as under:‐
TABLE 13.3: BASIS OF RATES
Item
No. Item Basis of Rates
2.0 Alignment and Formation
2.1 Underground section by
T.B.M excluding station
length
Avg. of Esc. Rates of DMRC Ph‐4 DPR May'14 & LMRC DPR
May'13 (Base rates are Rs. 111.00 Cr.& Rs. 105.71 Cr. Resp.)
2.2 Underground section by cut
& cover for Ramp
Average of escalated rates of DMRC Ph‐IV DPR May'14 & LMRC
DPR May'13. (Base rates are Rs. 102.87 Cr.& Rs. 97.97 Cr. Resp.)
2.3 U/G section by NATM for
alignment and access tunnel
Estimated rates are based upon escalated rates (excluding taxes)
for Airport Express Metro Link Contract package no. C‐6, 2010.
Completion cost is Rs. 308 Cr. inclusive of taxes and duties @
20%. for 2.3 Km tunnel & one tunnel ventilation building.
Estimated rates are worked out as Rs. (308‐8)/1.2/2.3 and
escalation is applied.
2.4 Elevated section excluding
viaduct length in station
Estimated rates are based upon accepted work (Sept'14) of
elevated priority corridor of LMRC. Total Length = 8250‐
8x140(stn length)‐315 (special span) + 300 (depot connectivity) =
7115m. Cost of Viaduct is Rs. 324.2‐7.77 = Rs. 316.43 Cr.
inclusive of taxes @ 18.54%. and Rs. 266.94 Cr. w/o taxes. Basic
rates per km are 266.94/7.115 i.e. Rs. 37.52 Cr. and escalated
rates comes out to Rs. 39.88 Cr. per Km.
2.5 Elevated Section‐ Special
Span
(a) 34m+45m+34m
Estimated rates are derived from DMRC LAR for Mayapuri‐
Naraina CLC ‐ 34m+60m+34m at the cost of Rs. 15 Cr.
2.6 At‐grade Section Estimated rates are derived from escalated rates of At‐grade
section of Nagpur Metro DPR (June’2012, Base rate is Rs. 2.90 Cr
per Km)
2.7 Entry to Depot Estimated rates are based upon accepted work (Sept'14) of
elevated priority corridor of LMRC. Total Length = 8250‐
8x140(stn length)‐315 (special span) + 300 (depot connectivity) =
7115m.
Cost of Viaduct is Rs. 324.2‐7.77 = Rs. 316.43 Cr. inclusive of
taxes @ 18.54%. and Rs. 266.94 Cr. w/o taxes.
Basic rates per km are 266.94/7.115 i.e. Rs. 37.52 Cr. and
escalated rates comes out to Rs. 39.88 Cr. per Km.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐5
Item
No. Item Basis of Rates
3.0 Station Buildings
3.1 Underground Station (160 m Length, 2‐Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works
As the length of station is only 160m, rates have been taken @
80% of Estimated rates based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13. Base rates are Rs.
116.80 Cr.& Rs. 125.16 Cr.
b Underground Station‐ EM works etc.
As the length of station is only 160m, rates have been taken @
80% of Estimated rates based upon average of escalated rates of
DMRC Ph‐3 LAR CE‐09 (lot 3) 06.08.13 @ Rs. 24.63 Cr.
c Underground Station ‐ ECS & TVS etc
As the length of station is only 160m, rates have been taken @
80% of Estimated rates based upon average of escalated rates of
DMRC Ph‐3 LAR CE‐10 & 11 (lot 3) 08.05.13 @ Rs. 30.12 Cr.
3.2 Underground Station (140 m Length or less, 3‐Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works With 3‐level station, length of station is proposed as 140m /
130m. The construction efforts shall be similar to 160m long 2‐
level station. Hence, rates adopted are same as that for 160 m
station with 2‐level.
b Underground Station‐ EM works etc.
c Underground Station ‐ ECS & TVS etc
3.3 Underground Station (100 m Length or less, 4‐Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works
With 4‐level station, length of station is proposed as 97m. The
construction efforts shall be similar to 140m long 3‐level station.
Hence, rates adopted are same as that for 140 m station with 3‐
level.
b Underground Station‐ EM works etc.
c Underground Station ‐ ECS & TVS etc
3.5 Underground Station‐ Architectural Finishes
As the length of station is only 160m, rates have been taken @
80% of Estimated rates based upon average of escalated LAR of
LMRC ‐ accepted cost (July'15) of Rs. 58.74 Cr. inclusive of taxes
and duties @ Rs. 18.54% for 8 elevated Stations(140m). Base
cost per LMRC station (140m) comes out to Rs. 7.3425 Cr. with
taxes and Rs. 6.19 cr. per station without taxes) are adopted.
3.6 Elevated Station Buildings (85mx19.2 or less)
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐6
Item
No. Item Basis of Rates
a Elevated station ‐ Civil Works including Viaduct
For Kanpur MRTS length of elevated station for 6‐coaches was
kept as 140m. For Kanpur DPR, Estimated rates are based upon
LMRC accepted cost of Rs. 261 Cr. (Sep'14) for 8 Stations
inclusive of taxes & duties @ 18.54% and Rs. 220.18 Cr. without
taxes & duties. For Kanpur MRTS, Cost of 140m x 27m and 140m
x 24m elevated stations comes out to Rs. 32.28 Cr./station and
Rs. 28.70 Cr./station respectively.
As the length of elevated station for Varanasi MRTS is 85m /
75m, reduced rates @75% of rates for Kanpur DPR have been
taken. Accordingly, for Varanasi MRTS, Cost of 85m x 19.20m
elevated stations is worked out as Rs. 21.79 Cr./station.
The LAR based cost of 3‐coach elevated stations at Kochi Metro
comes out to Rs. 40 Cr./station which is higher than the awarded
cost of the 6‐coach 8 numbers elevated stations for Lucknow
Metro. Hence, LAR of Kochi metro have not been applied to
Varanasi Metro.
b Elevated station ‐ EM Works etc.
Estimated rates are based upon awarded rates of Kochi Metro,
KE‐10 dt. 12.12.2014. Avg. cost 4.21 Cr./Stn plus escalation.
3.7 Elevated Station‐ Architectural Finishes
As the length of station is only 85m, rates have been taken @
80% of Estimated rates based upon LMRC accepted cost (July'15)
of Rs. 58.74 Cr. inclusive of taxes and duties @ Rs. 18.54% for 8
elevated Stations(140m). Cost per LMRC station (140m) comes
out to Rs. 7.3425 Cr. with taxes and Rs. 6.19 cr. per station
without taxes) are adopted.
3.10 Lifts & Escalators (Elevated and UG stations)
a Lifts Estimated rates are based upon DMRC Ph‐3 LAR CE‐3 (lot 1 & 2)
Dec'12, Rs. 32.27 lacs. plus escalation.
b Escalators Estimated rates are based upon DMRC Ph‐3 LAR CE‐4 (lot 1 & 2)
May'13, Rs. 68.69 lacs. plus escalation.
4.0 Maintenance Depot
4.1 Civil works Estimated rates are based upon LMRC Depot LAR, April'15,
excluding taxes and duties i.e. Rs. 107.29 Cr.
Out of the two depots, Depot at Kalindi Vihar for Corridor‐2 is
located in low lying area and cost of filling by average 2.0m has
been included in civil cost.
4.2 EM works + Machinery & Plant + General Works
Estimated rates for E&M are based upon LMRC Depot LAR,
April'15, excluding taxes and duties @ Rs. 18.44 Cr. Rates for
Machinery & Plant totalling Rs.90 Cr. are based upon various
relevant LARs.
5.0 P‐Way
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐7
Item
No. Item Basis of Rates
5.1 Ballastless track for elevated & underground Section
Estimated rates are based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13.
5.2 Ballasted track for Depot Estimated rates are based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13.
5.3 Ballastless track for entry to Depot
Estimated rates are based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13.
6.0 Traction & power supply incl. Third Rail, RSS, TSS, ASS etc.
6.1 UG Section and Elevated section including SCADA
Estimated rates are based upon awarded rates of BMRCL
Dec,2009 Rs 11.78 Cr./Km plus escalation.
6.2 For Depot Entry Estimated rates are based upon awarded rates of BMRCL
Dec,2009 Rs 11.78 Cr./Km plus escalation.
6.3 For Depot Estimated rates are based upon awarded rates of BMRCL
Dec,2009 Rs 11.78 Cr./Km plus escalation.
6.4 For 132kV GIS and 132kV cable/transmission line from GSS to RSS
Estimated rates are based upon DMRC Ph‐IV DPR plus
escalation.
7.0 Signalling and Telecom.
7.1 Signalling Estimated rates are based upon awarded rates of LMRC, Sept'15.
7.2 Telecommunication Estimated rates are based upon 90% of awarded rates of LMRC,
Sept'15.
7.3 Automatic fare collection Estimated rates are based upon Jaipur Metro LAR, Mar'12 @3.67
Cr. Per station plus escalation.
7.4 Central Clearing House System (CCHS)
As per prevalent DMRC rates.
7.5 Platform Screen Doors As 3‐coach are proposed, rates adopted are 70% of the (LAR i.e.
DMRC / 20/111 ‐ 196/2014 (Lot 3), May'15, Rs. 2.26 Cr. for 6
Coaches, 24 doors).
8.0 Rolling Stock
Estimated rates are based upon LMRC accepted rates SEP'15.
9.0 Environment, R & R incl. Hutments etc.
a Environmental Cost As per details given in Chapter 12
b R & R As per details given in Chapter 12
10.0 Misc. Utilities, road works, Topographic Surveys, Geotechnical Investigation, Barricading, Tree Cutting and replanting, other civil works such as signage's, Environmental protection and traffic management.
10.1 & 10.2
Civil works & Electrical works Estimated rates are based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐8
Item
No. Item Basis of Rates
11.0 Capital Expenditure on Security: Estimated rates are based upon average of escalated rates of
DMRC Ph‐IV DPR May'14 & LMRC DPR May'13. The expenditure is required to cover the civil and
Electrical items, equipments (X‐Ray machine, Metal detector etc.)
12.0 Staff Quarters and OCC Building: Estimated rates are based upon average of escalated rates of DMRC Ph‐IV DPR May'14 & LMRC DPR May'13. OCC building is included in cost estimate for corridor‐1 only and it will cover Corridor‐2 also. As such, no separate OCC building will be required for corridor‐2. Cost for Green Building concept has been taken as Rs. 7 Cr. for each corridor. This is based upon cost of Rs. 10 cr. taken for 23 Km Corridor of Kanpur MRTS.
13.0 Capital Expenditure on Inter modal integration including Footpath for pedestrians, Feeder Buses and Bicycles @2% of Total Cost excluding Land ‐ As per LMRC DPR, it is taken @ 2% of total cost excluding land.
13.1.4 Capital Cost Estimate
The abstract of capital cost estimate of Corridor‐1 & 2 is given in Table 13.4. Detailed capital
cost estimate for Corridor‐1 & 2 is given in Table 13.5 and 13.6 respectively.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐9
TABLE 13.4: ABSTRACT OF COST ESTIMATE OF CORRIDOR‐1 & 2
S. No. Item
Corridor‐1 Corridor‐2
Amount (Rs. in Crore)
Amount (Rs. in Crore)
1 Land 438.47 36.99
2 Alignment and Formation 1950.92 960.11
3 Station Buildings incl. Civil works, EM works, ECS, TVS, Lift, escalators & Architectural Finishes etc
2409.98 1295.42
4 Depot including civil, EM, Machinery & plants, general works
218.31 0.00
5 P‐Way for main line, depot and depot connectivity 199.19 80.46
6 Traction & power supply 750V DC 439.43 181.08
7 Signalling and Telecom. Incl. AFC, Platform screen doors, CCHS etc.
392.74 195.24
8 Rolling Stock 684.18 325.80
9 R & R incl. Hutments etc. 8.99 2.95
10
Misc. Utilities, road works, Topographic Surveys, Geotechnical Investigation, Barricading, Tree Cutting and replanting, other civil works such as signage's, Environmental protection and traffic management
143.00 73.05
11 Capital Expenditure on Security including civil and EM works
5.61 2.97
12 Staff Quarters and OCC Building and green building concept (Cost of OCC building is included in corridor‐1 only)
92.83 21.63
13 Capital Expenditure on Inter modal integration including Footpath for pedestrians, Feeder Buses and Bicycles @2% of Total Cost excluding Land
130.90 62.77
14 Total of all items except Land 6676.08 3201.49
15
General Charges incl. Design charges, including Metro Bhawan, (Civil+EM works) @ 7% on all items except land. (Metro Bhawan is charged to coridor‐1 only and it will cater to both the corridors)
467.33 224.10
16 Total of all items including G. Charges 7143.41 3425.59
17 Contingencies @ 3 % on all items except land 214.30 102.77
Gross Total including Contingencies (excluding Land Cost) 7357.71 3528.36
Gross Total including Contingencies (including Land Cost) 7796.18 3565.35
Insurance 0.6% of Capital cost excluding land 40.06 19.21
Gross Total including Insurance, Contingencies and Land 7836.00 3585.00
Taxes & Duties 1157.00 555.00
Gross Total including Taxes & Duties 8993.00 4140.00
Note: For quantities of various items, detailed estimate may be referred.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐10
TABLE 13.5: CAPITAL COST ESTIMATE CORRIDOR‐1
CORRIDOR ‐ 1: BHEL TO BHU
Total Length = 19.47 Km, From = (‐) 325m to 19025m, UG = 15.505 Km & ELEV = 3.845 Km
Depot Entry = 0.12 Km, Stations = 17, Elevated = 4 Nos. & U/G by Cut & cover = 13 Nos.
Jan' 2016, Price Level
S. No.
Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
1.0 Land
a Central Govt. Land ‐Permanent (without Solatium)
Ha 34.80 0.07 2.44
b Central Govt. Land ‐Temporary (@ 6% of circle rates PA for 3 years, without Solatium)
Ha 6.260 0.40 2.50
c Central Govt. Structures (PRS at Varansasi Cantt including structure, Electrical, S&T, Terminal etc)
Ha 3.00 LS 3.00
d State Govt. Land ‐Permanent (for Alignment, Depot, RSS, Ancillary Bldgs, Misc., without Solatium)
Ha 5.50 1.00 5.50
e State Govt. Land ‐Temporary Ha 1.32 2.60 3.43
f State Govt. Structures ‐Permanent(Depreciated cost after 60% depreciation)
Ha 7.01 0.2633 1.85
g Private Land ‐Permanent (for Depot including Solatium)
Ha 21.85 13.20 288.42
h Private Land ‐Permanent (for Alignment, RSS, Ancillary Bldgs, Misc., including Solatium)
Ha 48.40 1.35 65.34
i Private Land ‐Temporary (for underground station by cut & cover etc, Misc., @ 6% of circle rates PA for 3 years, including Solatium)
Ha 5.198 2.50 13.00
j Private Land ‐Temporary (for casting yard including Solatium)
Ha 5.198 6.00 31.19
k
Private Structure ‐ Permanent including Solatium as per LARRA (average rate has been worked out after applying relevant circle rates Aug' 2015 for residential and commercial structures)
Ha 20.40 1.02 20.81
l Cost of Structures for rehabtilation of squatters at Tulsi Manas Mandir
Ha 25.00 0.04 1.00
Sub Total (1) 438.47
2.0 Alignment and Formation
2.1 Underground section by T.B.M excluding station length
R. Km. 121.39 13.072 1586.81
2.2 Underground section by cut & cover for Ramp R. Km. 112.50 0.224 25.20
2.3 U/G section by NATM for alignment and access tunnel
R. Km. 142.15 1.349 191.76
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐11
S. No.
Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
2.4 Elevated section excluding viaduct length in station
R. Km. 40.37 3.525 142.30
2.5 Elevated Section (Special Span ‐34m+45m+34m = 113m)
Each 13.57 0.00 0.00
2.6 At‐grade Section R. Km. 3.45 0.00 0.00
2.7 Entry to Depot R. Km. 40.37 0.12 4.84
Sub Total (2) 1950.92
3.0 Station Buildings
3.1 Underground Station (160 m length, 2 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 4.00 425.72
b Underground Station‐ EM works etc. Each 22.17 4.00 88.68
c Underground Station ‐ ECS & TVS etc Each 27.45 4.00 109.80
3.2 Underground Station (140 m or less length, 3 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 7.00 745.01
b Underground Station‐ EM works etc. Each 22.17 7.00 155.19
c Underground Station ‐ ECS & TVS etc Each 27.45 7.00 192.15
3.3 Underground Station (100 m or less length, 4 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 2.00 212.86
b Underground Station‐ EM works etc. Each 22.17 2.00 44.34
c Underground Station ‐ ECS & TVS etc Each 27.45 2.00 54.90
3.4 Underground Station (160 m length) incl. EM works, VAC etc. by NATM
a Underground Station‐ Structural Civil works Each 180.00 0.00 0.00
b Underground Station‐ EM works etc. Each 22.17 0.00 0.00
c Underground Station ‐ ECS & TVS etc Each 27.45 0.00 0.00
3.5 Underground Station‐ Architectural Finishes Each 9.61 13.00 124.93
3.6 Elevated Station Buildings (Type ‐I: 85mx19.2m)
a Elevated station ‐ Civil Works including Viaduct
Each 22.06 4.00 88.24
b Elevated station ‐ EM Works etc. Each 4.44 4.00 17.76
3.7 Elevated Station‐ Architectural Finishes Each 5.07 4.00 20.28
3.8 At‐grade Station Building
a At‐grade station ‐ Civil Works Each 16.26 0.00 0.00
b At‐grade station ‐ EM Works etc. Each 4.44 0.00 0.00
3.9 At‐grade Station‐ Architectural Finishes Each 5.07 0.00 0.00
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐12
S. No.
Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
3.10 Lifts & Escalators (Elevated, At‐grade and UG stations)
a Lifts Each 0.38 53.00 20.14
b Escalators Each 0.78 141.00 109.98
Sub Total (3) 2409.98
4.0 Maintenance Depot
4.1 Civil works LS 109.49
4.2 EM works + Machinery & Plant + General Works
LS 108.82
Sub Total (4) 218.31
5.0 P‐Way
5.1 Ballastless track for elevated & underground Section
Route Km.
8.14 19.35 157.51
5.2 Ballasted track for Depot Track Km.
4.07 10.00 40.70
5.3 Ballastless track for entry to Depot Route Km.
8.14 0.12 0.98
Sub Total (5) 199.19
6.0 Traction & power supply (750V DC)
6.1 UG Section & Elevated including SCADA Route Km.
15.79 19.35 305.54
6.2 For Depot entry Route Km.
15.79 0.12 1.89
6.3 For Depot Track Km.
7.90 10.00 79.00
6.4 Differential cost of 132kV GIS LS 20.00
6.5 132kV cable/transmission line from GSS to RSS.
LS
33.00
Sub Total (6) 439.43
7.0 Signalling and Telecom.
7.1 Signalling R. Km. 8.78 19.35 169.89
7.2 Telecommunication Per
Station 4.64 17.00 78.88
7.3 Automatic fare collection Per
station 4.42 17.00 75.14
7.4 Central Clearing House System (CCHS) Each 18.00 1.00 18.00
7.5 Platform Screen Doors Per
Station 1.63 17.00 27.71
7.6 LED Screens for PD Per
Station 1.36 17.00 23.12
Sub Total (7) 392.74
8.0 Rolling Stock Each 10.86 63.00 684.18
Sub Total (8) 684.18
9.0 R & R incl. Hutments etc.
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐13
S. No.
Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
9.1 Environmental Cost As per details given in Chapter
12
5.50
9.2 R & R
3.49
Sub Total (9) 8.99
10.0
Misc. Utilities, road works, Topographic Surveys, Geotechnical Investigation, Barricading, Tree Cutting and replanting, other civil works such as signage's, Environmental protection and traffic management
10.1 Civil works R. Km. 4.04 19.350 78.17
10.2 Electrical Works R. Km. 3.35 19.350 64.82
Sub Total (10) 143.00
11.0 Capital Expenditure on Security
11.1 Civil works Per
Station 0.270 17.00 4.59
11.2 EM works Per
Station 0.060 17.00 1.02
Sub Total (11) 5.61
12.0 Staff Quarters and OCC Building
12.1 Civil works R. Km. 1.190 19.350 23.03
12.2 EM works R. Km. 0.290 19.350 5.61
12.3 Cost of OCC Building ‐ Civil Works LS 45.55
12.4 Cost of OCC Building ‐ E&M Works LS 11.64
12.5 Cost for Green Building concept LS 7.00
Sub Total (12) 92.83
13.0
Capital Expenditure on Inter modal integration including Footpath for pedestrians, Feeder Buses and Bicycles @2% of Total Cost excluding Land
130.90
14.0 Total of all items except Land 6676.08
15.0 General Charges including Design charges, incl. Metro Bhawan Building (Civil+EM works) @ 7% on all items except land
467.33
16.0 Total of all items including G. Charges 7143.41
17.0 Contingencies @ 3 % on all items except land 214.30
18.0 Gross Total including Contingencies (excluding Land Cost) 7357.71
19.0 Gross Total including Contingencies (including Land Cost) = 7796.18
20.0 Insurance 0.6% of Capital cost excluding land 6233.83 Crore 40.06
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐14
S. No.
Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
21.0 Gross Total including Insurance = 7836.23
Say 7836.00
Taxes & Duties 1157.00
Total Cost including Taxes & Duties 8993.00
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐15
TABLE 13.6: CAPITAL COST ESTIMATE CORRIDOR‐2
CORRIDOR ‐ 2: BENIA BAGH TO SARNATH
Total Length = 9.885 Km, From = (‐) 245m to 9395m, ELEV = 1.923 Km, Underground = 7.717 Km,
Stabling (UG) = 0.245 Km
Stations = 9 No’s, Elevated = 2 No's Underground =7 No’s.
Jan' 2016, Price Level
S. No. Item Unit Rate (Rs. in
Crore) Qty.
Amount (Rs. in Crore)
Without taxes
1.0 Land
a Central Govt. Land ‐Permanent (without Solatium)
Ha 34.80 0.14 4.872
b Central Govt. Land ‐Temporary (@ 6% of circle rates PA for 3 years, without Solatium)
Ha 2.43 0.0000 0.00
c Central Govt. Structures‐ Permanent (PRS at Cantt Rly stn, Cost of structure, electrical, S&T, Terminals etc.,)
Ha 34.00 0.0242 0.82
d State Govt. Land ‐Permanent (for Alignment, Depot, RSS, Entry/Exits, Ancillary Bldgs, Misc., without Solatium)
Ha 5.50 1.100 6.05
e State Govt. Land ‐Temporary Ha 1.32 2.10 2.77
f State Govt. Structures ‐Permanent (Depreciated cost after 60% depreciation)
Ha 5.854 0.105 0.61
g Private Land ‐Permanent (for Alignment, RSS, Entry/Exits, Ancillary Bldgs, Misc., including Solatium)
Ha 30.965 0.130 4.03
h Private Land ‐Temporary (for underground station by cut & cover etc, Misc., @ 6% of circle rates PA for 3 years, including Solatium)
Ha 5.57 0.00 0.00
i
Private Structure ‐ Permanent including Solatium as per LARRA (average rate has been worked out after applying relevant circle rates Aug' 2015 for residential and commercial structures)
Ha 99.068 0.180 17.83
Sub Total (1) 36.989
2.0 Alignment and Formation
2.1 Underground section by T.B.M excluding station length
R. Km. 121.39 6.078 737.81
2.2 Underground section by cut & cover for Ramp R. Km. 112.50 0.402 45.23
2.3 U/G section by NATM for alignment and access tunnel
R. Km. 142.15 0.745 105.90
2.4 Elevated section excluding viaduct length in station
R. Km. 40.37 1.763 71.17
2.5 Elevated Section (Special Span ‐34m+45m+34m = 113m)
Each 13.57 0.00 0.00
2.6 At‐grade Section R. Km. 3.45 0.00 0.00
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February, 2016 Page 13‐16
2.7 Entry to Depot R. Km. 40.37 0.00 0.00
Sub Total (2) 960.11
3.0 Station Buildings
3.1 Underground Station (160 m length, 2 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 1.00 106.43
b Underground Station‐ EM works etc. Each 22.17 1.00 22.17
c Underground Station ‐ ECS & TVS etc Each 27.45 1.00 27.45
3.2 Underground Station (140 m or less length, 3 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 5.00 532.15
b Underground Station‐ EM works etc. Each 22.17 5.00 110.85
c Underground Station ‐ ECS & TVS etc Each 27.45 5.00 137.25
3.3 Underground Station (100 m or less length, 4 Level) incl. EM works, VAC etc. by Cut & Cover
a Underground Station‐ Structural Civil works Each 106.43 1.00 106.43
b Underground Station‐ EM works etc. Each 22.17 1.00 22.17
c Underground Station ‐ ECS & TVS etc Each 27.45 1.00 27.45
3.4 Underground Station (180 m length) incl. EM works, VAC etc. by NATM
a Underground Station‐ Structural Civil works Each 180.00 0.00 0.00
b Underground Station‐ EM works etc. Each 22.17 0.00 0.00
c Underground Station ‐ ECS & TVS etc Each 27.45 0.00 0.00
3.5 Underground Station‐ Architectural Finishes Each 9.61 7.00 67.27
3.6 Elevated Station Buildings (Type ‐I: 85mx19.2m)
a Elevated station ‐ Civil Works including Viaduct Each 22.06 2.00 44.12
b Elevated station ‐ EM Works etc. Each 4.44 2.00 8.88
3.7 Elevated Station‐ Architectural Finishes Each 5.07 2.00 10.14
3.8 At‐grade Station Building
a At‐grade station ‐ Civil Works Each 16.26 0.00 0.00
b At‐grade station ‐ EM Works etc. Each 4.44 0.00 0.00
3.9 At‐grade Station‐ Architectural Finishes Each 5.07 0.00 0.00
3.10 Lifts & Escalators (Elevated, At‐grade and UG stations)
a Lifts Each 0.38 27.00 10.26
b Escalators Each 0.78 80.00 62.40
Sub Total (3) 1295.42
4.0 Maintenance Depot
4.1 Civil works including filling for low lying depot land
LS 0.00
4.2 EM works + Machinery & Plant + General Works
LS 0.00
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐17
Sub Total (4) 0.00
5.0 P‐Way
5.1 Ballastless track for elevated & underground Section
Route Km.
8.14 9.885 80.46
5.2 Ballasted track for Depot Track Km.
4.07 0.00 0.00
5.3 Ballastless track for entry to Depot Route Km.
8.14 0.00 0.00
Sub Total (5) 80.46
6.0 Traction & power supply (750V DC)
6.1 UG Section & Elevated including SCADA Route Km.
15.79 9.885 156.08
6.2 For Depot entry Route Km.
15.79 0.00 0.00
6.3 For Depot Track Km.
7.90 0.00 0.00
6.4 Differential cost of 132kV GIS LS 10.00
6.5 132kV cable from GSS to RSS. LS 15.00
Sub Total (6) 181.08
7.0 Signaling and Telecom.
7.1 Signaling R. Km. 8.78 9.885 86.79
7.2 Telecommunication Per
Station 4.64 9.00 41.76
7.3 Automatic fare collection Per
station 4.42 9.00 39.78
7.4 Central Clearing House System (CCHS) Each 18.00 0.00 0.00
7.5 Platform Screen Doors Per
Station 1.63 9.00 14.67
7.6 LED Screens for PD Per
Station 1.36 9.00 12.24
Sub Total (7) 195.24
8.0 Rolling Stock Each 10.86 30.00 325.80
Sub Total (8) 325.80
9.0 R & R incl. Hutments etc.
9.1 Environmental Cost As per details given in Chapter
12
2.28
9.2 R & R 0.67
Sub Total (9) 2.95
10.0
Misc. Utilities, road works, Topographic Surveys, Geotechnical Investigation, Barricading, Tree Cutting and replanting, other civil works such as signage's, Environmental protection and traffic management
10.1 Civil works R. Km. 4.04 9.885 39.94
10.2 Electrical Works R. Km. 3.35 9.885 33.11
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February, 2016 Page 13‐18
Sub Total (10) 73.05
11.0 Capital Expenditure on Security
11.1 Civil works Per
Station 0.270 9.00 2.43
11.2 EM works Per
Station 0.060 9.00 0.54
Sub Total (11) 2.97
12.0 Staff Quarters and OCC Buiulding
12.1 Civil works R. Km. 1.190 9.885 11.76
12.2 EM works R. Km. 0.290 9.885 2.87
12.3 Cost of OCC Building ‐ Civil Works LS 0.00
12.4 Cost of OCC Building ‐ E&M Works LS 0.00
12.5 Cost for Green Building concept LS 7.00
Sub Total (12) 21.63
13.0
Capital Expenditure on Inter modal integration including Footpath for pedestrians, Feeder Buses and Bicycles @2% of Total Cost excluding Land
62.77
14.0 Total of all items except Land 3201.49
15.0 General Charges including Design charges, incl. Metro Bhawan Building (Civil+EM works) @ 7% on all items except land
224.10
16.0 Total of all items including G. Charges 3425.59
17.0 Contingencies @ 3 % on all items except land 102.77
18.0 Gross Total including Contingencies (excluding Land Cost) 3528.36
19.0 Gross Total including Contingencies (including Land Cost) = 3565.35
20.0 Insurance 0.6% of Capital cost excluding land 3201.49 Crore 19.21
21.0 Gross Total including Insurance = 3584.56
Say 3585.00
Taxes & Duties 555.00
Total Cost including Taxes & Duties 4140.00
13.1.5 Taxes and Duties
Basic cost is exclusive of various taxes and duties viz. custom duty, excise duty, VAT etc. and
details of taxes and duties are worked out separately. Current rates of various taxes and duties
have been taken into consideration and taxes / duties have been applied as per LMRC. Central
and state taxes and duties (customs, Excise and VAT) for Corridor ‐1 & 2 have been worked out
to Rs. 1157 Crores and Rs. 555 Crores respectively and are detailed in Table 13.7 and 13.8.
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐19
TABLE 13.7: DETAILS OF TAXES AND DUTIES CORRIDOR – 1
Customs Duty = 22.85%
Excise Duty = 12.50%
VAT = 12.50%
S. No.
Description
Total cost without Taxes &
duties (Cr.)
Taxes and duties Total
Taxes & Duties (Cr.)
Custom Duty (Cr.)
Excise Duty (Cr.)
VAT (Cr.)
1 Alignment & Formation
Underground 1803.77 123.67 110.48 62.15 296.29
Elevated, At‐grade & entry to Depot 147.15 12.88 7.24 20.12
2 Station Buildings
a) Underground station‐civil works 1508.52 103.42 92.40 51.97 247.79
b) Underground station‐EM works 775.18 53.15 57.65 32.43 143.23
c) Elevated station ‐ civil works 108.52 9.50 5.34 14.84
d) Elevated station‐EM works 17.76 0.81 1.51 0.85 3.17
e) At‐grade station ‐ civil works 0.00 0.00 0.00 0.00
f) At‐grade station‐EM works 0.00 0.00 0.00 0.00 0.00
3 Depot
Civil works 109.49 7.51 6.71 3.77 17.99
EM works 108.82 4.97 9.25 5.20 19.43
4 P‐Way 199.19 36.42 4.23 2.38 43.03
5 Traction & power supply
a) Traction and power supply 439.43 40.17 28.01 15.76 83.94
6 S and T Works
a) S & T 248.77 45.48 5.29 2.97 53.74
b) AFC, PSD, LED screens & CCHS 143.97 24.68 3.82 2.15 30.65
7 Rolling stock 684.18 137.59 6.67 3.75 148.02
8 R & R hutments 8.99 0.56 0.56
9 Misc.
Civil works 78.17 6.84 3.85 10.69
EM works 64.82 6.89 3.87 10.76
10 Security
Civil works 4.59 0.40 0.28 0.68
EM works 1.02 0.13 0.10 0.23
11 Staff Quarters & OCC Buildings
Civil works 68.58 6.00 0.44 6.44
EM works incl. green bldg. conept 24.25 3.03 2.18 5.21
Total 6545.18 577.86 371.69 207.25 1156.80
Total Taxes & Duties 1157
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February, 2016 Page 13‐20
TABLE 13.8: DETAILS OF TAXES AND DUTIES CORRIDOR – 2
Customs Duty = 22.85%
Excise Duty = 12.50%
VAT = 12.50%
S. No.
Description
Total cost without Taxes &
duties (Cr.)
Taxes and duties Total
Taxes & Duties (Cr.)
Custom Duty (Cr.)
Excise Duty (Cr.)
VAT (Cr.)
1 Alignment & Formation
Underground 888.94 60.94 54.45 30.63 146.02
Elevated & entry to Depot 71.17 6.23 3.50 9.73
2 Station Buildings
a) Underground station‐civil works 812.28 55.69 49.75 27.99 133.43
b) Underground station‐EM works 420.00 28.79 31.24 17.57 77.60
c) Elevated station ‐ civil works 54.26 4.75 2.67 7.42
d) Elevated station‐EM works 8.88 0.41 0.75 0.42 1.59
3 Depot
Civil works 0.00 0.00 0.00 0.00 0.00
EM works 0.00 0.00 0.00 0.00 0.00
4 P‐Way 80.46 14.71 1.71 0.96 17.38
5 Traction & power supply
a) Traction and power supply 181.08 16.55 11.54 6.49 34.59
6 S and T Works
a) S & T 128.55 23.50 2.73 1.54 27.77
b) AFC, PSD,LED screens & CCHS 66.69 11.43 1.77 1.00 14.20
7 Rolling stock 325.80 65.52 3.18 1.79 70.48
8 R & R hutments 2.95 0.18 0.18
9 Misc.
Civil works 39.94 3.49 1.97 5.46
EM works 33.11 3.52 1.98 5.50
10 Security
Civil works 2.43 0.21 0.15 0.36
EM works 0.54 0.07 0.05 0.12
11 Staff Quarters & OCC Buildings
Civil works 11.76 1.03 0.08 1.10
EM works incl. green bldg. conept 9.87 1.23 0.88 2.12
Total 3138.72 277.55 177.66 99.85 555.06
Total Taxes & Duties 555
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐21
13.2 OPERATION AND MAINTENANCE COST
The Operation and Maintenance cost for Varanasi MRTS Corridors is worked under three
major heads:
Staff cost
Maintenance cost which includes expenditure towards upkeep and maintenance of the
system and consumables and
Energy cost
Staff Cost
The O&M staff is assumed to be provided @ 35 persons per kilometer and the annual cost
this account is estimated considering average staff salary of Rs. 6.54 Lakhs per annum in the
year 2016. The escalation factor used for staff costs is 9% per annum to provide for growth
in salaries. The staff cost for the corridors of BHU to BHEL corridor and Beniabagh to Sarnath
corridor is estimated to be Rs 81.18 crore and Rs 41.43 Crore respectively for the inception
year i.e. 2023.
Maintenance Expenses
Maintenance expenses are taken @ Rs. 1.34 Crores/km in the year 2016. Maintenance cost
for Varanasi Metro corridors would be Rs 43.25 Crores and Rs 22.07 crores for corridor 1 and
corridor 2 respectively in the inception year i.e. 2023 considering escalation @ 7.5% p.a. for
every year of operation.
Energy Charges
The energy consumption to meet the traction and non‐traction power requirement is based
on traffic demand for different horizon years. The cost of electricity is a significant part of
O&M charges, constituting about 40‐50% of total annual working cost. The traction power
tariff is taken @ Rs. 5.60 per kVAh and fixed charges@125/kVA/ month in the year 2015
based on UPPTCL tariff order 2015, which is escalated @ 7.5% every year of operation.
Annual energy consumption charges have been estimated as Rs. 133.79 crores in year 2023,
Rs. 238.61 crores in 2031, Rs 540.88 crores in 2041, Rs. 1270.46 crores in 2051 for BHU to
BHEL corridor and Rs. 63.53 Crores in year 2023, Rs. 113.31 crores in 2031, Rs 262.09 crores
in 2041, Rs. 599.87 crores in 2051 for Beniabagh to Sarnath.
Additional Investment
To cater to increased traffic demand, additional investment will have to be made for
purchase of additional coaches. The additional investment in the year 2031 works out to Rs.
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐22
131.55 Crores for purchase of 9 additional coaches for BHU to BHEL Corridor and Rs. 131.55
Crores for 9 additional coaches for Beniabagh to Sarnath corridor in year 2031.
An investment of Rs. 534.51 Crores would be required for purchase of 30 additional coaches
in the year 2041 (Rs 427.61 crores for 24 additional coaches for BHU to BHEL Corridor and
Rs 106.90 crores for 6 additional coaches for Beniabagh to Sarnath corridor) and Rs 586.41
Crores for purchase of 27 additional coaches in the year 2051 (Rs 390.94 crores for 18
coaches for corridor 1 and Rs 195.47 crores for 9 coaches for corridor 2).These additional
investments have been worked out considering an escalation factor of 2% per annum.
Replacement Cost
The replacement costs are provided for meeting the cost on account of replacement of
equipments due to wear and tear. With the nature of equipment proposed to be provided
for the corridor, it is expected that about 25% of the equipment comprising Electrical, Rolling
stock and 50% of Signalling & Telecom would require replacement/ rehabilitation after 20
years.
The replacement cost for the BHU to BHEL corridor works out to be Rs. 2407.68 Crores and
Rs 1225.73 Crores for Beniabagh to Sarnath corridor. The replacement cost has been
worked out considering an escalation factor of 5% per annum.
The year wise total Operation and Maintenance cost for the corridors of Varanasi MRTS is
indicated in Table 13.9 and Table 13.10.
.
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐23
TABLE 13.9: O & M COST FOR BHU TO BHEL CORRIDOR (COST IN RS CRORE)
Year
Staff Cost Maintenance
Expenses
Energy
Charges Total O&M
cost
Addition/
Replace ‐
ment Cost
(Cr.) Esc @9% Esc @7.5% Esc @7.5%
2023 81.18 43.25 133.79 258.22
2024 88.48 46.49 143.83 278.80
2025 96.45 49.98 154.61 301.04
2026 105.13 53.73 166.21 325.06
2027 114.59 57.76 178.67 351.02
2028 124.90 62.09 192.08 379.07
2029 136.14 66.75 206.48 409.37
2030 148.39 71.75 221.97 442.11
2031 161.75 77.13 238.61 477.50 131.55 Addition of 9 coaches
2032 176.31 82.92 282.11 541.34
2033 192.18 89.14 303.27 584.59
2034 209.47 95.82 326.02 631.31
2035 228.32 103.01 350.47 681.80
2036 248.87 110.74 376.75 736.36
2037 271.27 119.04 405.01 795.32
2038 295.69 127.97 435.39 859.04
2039 322.30 137.57 468.04 927.91
2040 351.30 147.88 503.14 1,002.33
2041 382.92 158.98 540.88 1082.78 427.61 Addition of 24 coaches
2042 417.38 170.90 662.65 1250.93
2043 454.95 183.72 712.35 1351.01 2,407.68 Replacement of 25% of
Elec. & 50% S&T assets 2044 495.89 197.50 765.77 1459.16
2045 540.53 212.31 823.21 1576.04
2046 589.17 228.23 884.95 1702.35
2047 642.20 245.35 951.32 1838.87
2048 700.00 263.75 1022.67 1986.41
2049 763.00 283.53 1099.37 2145.89
2050 831.67 304.80 1181.82 2318.28
2051 906.51 327.65 1270.46 2504.63 390.94 Addition of 18 coaches
2052 988.10 352.23 1521.80 2862.13
2053 1,077.03 378.65 1635.94 3091.61
2054 1,173.96 407.04 1758.63 3339.64
2055 1,279.62 437.57 1890.53 3607.72
2056 1,394.79 470.39 2032.32 3897.49
2057 1,520.32 505.67 2184.74 4210.73
2058 1,657.14 543.60 2348.60 4549.34
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February, 2016 Page 13‐24
TABLE 13.10: O & M COST FOR BENIA BAGH TO SARNATH CORRIDOR (COST IN RS CRORE)
Year
Staff Cost Maintenance
Expenses
Energy
Charges Total O&M
cost
Addition/
Replace ‐
ment Cost
(Cr.) Esc @9% Esc @7.5% Esc @7.5%
2023 41.43 22.07 63.53 127.03
2024 45.15 23.73 68.30 137.18
2025 49.22 25.51 73.42 148.14
2026 53.65 27.42 78.92 159.99
2027 58.48 29.47 84.84 172.79
2028 63.74 31.69 91.21 186.63
2029 69.47 34.06 98.05 201.58
2030 75.73 36.62 105.40 217.74
2031 82.54 39.36 113.31 235.21 131.55 Addition of 9 coaches
2032 89.97 42.31 136.70 268.99
2033 98.07 45.49 146.96 290.51
2034 106.90 48.90 157.98 313.77
2035 116.52 52.57 169.83 338.91
2036 127.00 56.51 182.56 366.07
2037 138.43 60.75 196.25 395.43
2038 150.89 65.30 210.97 427.17
2039 164.47 70.20 226.80 461.47
2040 179.27 75.47 243.81 498.55
2041 195.41 81.13 262.09 538.63 106.90 Addition of 6 coaches
2042 213.00 87.21 312.88 613.09
2043 232.16 93.75 336.35 662.26 1,225.73 Replacement of 25% of
Elec. & 50% S&T assets 2044 253.06 100.78 361.57 715.42
2045 275.84 108.34 388.69 772.87
2046 300.66 116.47 417.84 834.97
2047 327.72 125.20 449.18 902.10
2048 357.21 134.59 482.87 974.68
2049 389.36 144.69 519.09 1053.14
2050 424.41 155.54 558.02 1137.96
2051 462.60 167.21 599.87 1229.68 195.47 Addition of 9 coaches
2052 504.24 179.75 720.80 1404.78
2053 549.62 193.23 774.86 1517.71
2054 599.08 207.72 832.98 1639.78
2055 653.00 223.30 895.45 1771.75
2056 711.77 240.04 962.61 1914.42
2057 775.83 258.05 1034.80 2068.68
2058 845.66 277.40 1112.41 2235.47
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐25
13.3 ECONOMIC ANALYSIS
13.3.1 Approach
The economic appraisal has been carried out within the broad framework of Social Cost –
Benefit Analysis Technique. It is based on the incremental costs and benefits and involves
comparison of project costs and benefits in economic terms under the “with” and “without”
project scenario. In the analysis, the cost and benefit streams arising under the above
project scenarios have been estimated in terms of market prices and economic values have
been computed by converting the former using appropriate shadow prices. This has been
done to iron out distortions due to externalities and anomalies arising in real world pricing
systems. The annual streams of project costs and benefit have been compared over the
analysis period of 40 years to estimate the net cost / benefit and to calculate the economic
viability of the project in terms of EIRR.
The Economic Internal Rate of Return (EIRR) for the project has then been arrived using
Discounted Cash Flow technique to the net benefit stream at economic prices.
13.3.2 Evaluation Assumptions
The key assumptions used in the evaluation are listed in Table 13.11.
TABLE 13.11: KEY EVALUATION ASSUMPTIONS
Parameter Assumption
Price Level January ’2016
Construction period 2017‐2023
First year of operation of MRTS 2023
Daily to annual factor 340
13.3.3 Estimation of Benefits
The Varanasi MRTS will yield tangible and non‐tangible savings due to equivalent reduction
in road traffic and certain socio‐economic benefits. The Introduction of MRTS will result in
reduction in number of mini buses, IPT, usage of private vehicles, air pollution and increase
in the speed of road‐based vehicles. This, in turn, will result in significant social benefits due
to reduction in fuel consumption, vehicle operating cost and travel time of passengers.
Reduction in accidents, pollution and road maintenance costs are the other benefits to the
society in general.
The benefit stream includes:
Capital and operating cost (on present congestion norms) of carrying the total
volume of passenger traffic by existing mini bus and IPT system and private vehicles
in case MRTS project is not taken up.
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February, 2016 Page 13‐26
Savings in operating costs of mini buses, IPT and other vehicles due to de‐congestion
including those that would continue to use the existing transport network even after
the MRTS is introduced.
Savings in time of commuters using the MRTS over the existing transport modes
because of faster speed of MRTS.
Savings in time of those passengers continuing on existing modes, because of
reduced congestion on roads.
Savings on account of prevention of accidents and pollution with introduction of
MRTS.
Savings in road infrastructure and development costs that would be required to
cater to increase in traffic, in case MRTS is not introduced.
Savings in fuel consumption on account of less number of vehicles on road and
decongestion effect with introduction of MRTS are included in those of vehicle
operating cost.
Various assumptions have been made, while assessing the economic benefits to the society
with the introduction of MRTS system. Table 13.12 gives the assumptions made for VOC and
VOT.
TABLE 13.12: ASSUMPTIONS FOR VOC & VOT
Mode VOC* Rs /km Value of Travel Time**Passenger/ Hr
Car 7.78 77
2w 3.38 36
Auto 5.84 36
Bus 18.65 58
*Source IRC SP 30 (2009) Values brought to 2015 level using factor of 5%
The Quantification of some of the social benefits has not been attempted because
universally acceptable norms do not exist to facilitate such an exercise. However, it has
been considered appropriate to highlight the same, as given below:
Reduced road stress
Better accessibility to facilities in the influence area
Economic stimulation in the micro region of the infrastructure
Increased business opportunities
Overall increased mobility
Facilitating better planning and up‐gradation of influence area
Improving the image of the city
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February, 2016 Page 13‐27
13.3.4 Transport Demand on MRT Corridor Phase‐I
At present Phase‐1 MRTS corridors are served by mini buses and IPT modes in addition to
private vehicles. The total transport demand and demand estimated on Phase‐1 MRTS
corridors for various years is given in Table 13.13.
TABLE 13.13: TRANSPORT DEMAND FORECAST ON PHASE‐I MRTS CORRIDORS
Item 2021 2031 2041
Daily Total Trips (Lakh) 21.72 28.11 33.76
Daily Trips on MRT Corridors (Lakh) 5.09 6.72 9.15
Daily Trips by other modes (Lakh) 16.64 21.39 24.61
13.3.5 Savings
i. Capital and Operating Cost
The traffic on MRTS will come due to shifting of traffic from mini buses, IPT and private
modes once a more efficient system is available. The major shifting of traffic would be from
private vehicles. It has been estimated that 956 buses will be saved with the introduction of
MRTS. This will save Rs. 212 Crore in the year 2023 towards capital and operating cost of bus
system. The saving in respect of private vehicles and IPT modes will be approx. Rs. 147
Crore.
ii. Traffic Congestion
MRT will contribute towards reducing the congestion and journey time on roads because of
diversion of some traffic to MRTS. Reduction in traffic congestion will save the necessary
capital investment and vehicle operating cost as well as increase in time saved per vehicle.
With the implementation of MRTS, the savings from operating costs due to decongestion
effect has been estimated to be Rs. 32 Crore in the year 2023.
iii. Passenger Time Savings
With the introduction of proposed MRTS, there will be reduction in traffic congestion on the
roads and correspondingly, there will be saving in time of commuters travelling by various
modes of road transport. Similarly, MRTS itself being faster than conventional road
transport modes will also lead to considerable saving in time of commuters traveling on
MRTS. With the implementation of the project, the passenger time savings are estimated at
Rs. 753 Crore for the year 2023.
iv. Safety
The reduction in traffic volumes on roads brought about by modal transfer to the proposed
MRTS is expected to reduce number of accidents. Any reduction in number of accidents will
involve savings from damage to vehicles and savings towards medical and insurance
expenses to persons involved in accidents. In the absence of data related to accidents on the
corridor, this benefit could not be quantified.
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February, 2016 Page 13‐28
v. Reduced Air Pollution
The benefits because of saving in cost of prevention of vehicular pollution, with the
implementation of Varanasi Metro in the year 2023 are expected to be approx Rs. 28 Crore.
vi. Savings in Road Infrastructure
The proposed MRT corridor will also bring savings in investment in road infrastructure
because shifting of passengers to MRT and withdrawal of vehicles in the project area. Since
no local data is available concerning the road infrastructure investment on this account, this
saving has not been incorporated into economic evaluation.
13.3.6 Shadow Pricing
The value of Project cost and benefits have been expressed in terms of market prices. These
prices, however, do not reflect the real resource cost and value of benefits derived from the
project to the economy. The market prices are distorted due to variety of factors. These
factors could be controlled/administered prices of inputs, monopolistic market of inputs, tax
structure etc. The factors used for converting project inputs and output to economic costs
are given in following Table 13.14.
TABLE 13.14: FACTORS USED FOR CONVERTING PROJECT INPUTS AND OUTPUT TO
ECONOMIC COSTS
S. No Item Factor
1 Capital Cost 0.85
2 Operations & Maintenance Cost 0.80
3 Savings in Capital & Operating Cost of Buses 0.89
4 Savings in Capital & Operating cost of Private Vehicles 0.8
5 Savings in Passenger Time 1.0
6 Savings in VOC 1.0
7 Savings in Accident Costs 1.0
8 Savings in Pollution Costs 1.0
13.3.7 Result of Economic Analysis
The cost and benefit streams for 35 year period in the economic prices have been worked
out and presented in Table 13.15.
The residual value of MRTS facilities (e.g. Metro corridors, equipment for power supply and
tele‐communication, rolling stock, etc.) in last year has not been taken into account as
benefit in these tables.
The total cost worked out on the above basis is then subtracted from the total benefits to
estimate the net benefit of the project. This flow is then subjected to the process of
discounting to work out the internal rate of return on the project, to examine the viability of
the project in economic terms. Thereafter, the Project EIRR has been arrived by using
shadow prices.
The EIRR of the project works out to 14.95 %.
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February, 2016 Page 13‐29
TABLE 13.15: COST BENEFIT STREAM: ECONOMIC PRICES
Rs. in Crore
Year Capital
RunningExpense of MRTS
Total Costs
Savings Buses
FromOthers Vehicles
Savings From Total Savings
Net CashFlow
Rs. in Cr. Time VOC POL
2017‐18 702 0 702 0 0 0 0 0 0 -702
2018‐19 1277 0 1277 0 0 0 0 0 0 -1277
2019‐20 1734 0 1734 0 0 0 0 0 0 -1734
2020‐21 1864 0 1864 0 0 0 0 0 0 -1864
2021‐22 2671 0 2671 0 0 0 0 0 0 -2671
2022‐23 3590 308 3898 189 117 753 32 28 1119 -2779
2023‐24 1544 333 1876 209 130 833 35 31 1237 -639
2024‐25 0 359 359 231 143 921 39 34 1367 1008
2025‐26 0 388 388 255 158 1017 43 38 1511 1123
2026‐27 0 419 419 282 175 1125 47 42 1671 1252
2027‐28 0 453 453 312 193 1243 52 46 1847 1394
2028‐29 0 489 489 345 214 1374 58 51 2041 1552
2029‐30 0 528 528 381 236 1519 64 56 2256 1728
2030‐31 0 570 570 513 324 2051 59 63 3010 2440
2031‐32 0 648 648 567 358 2267 65 70 3328 2679
2032‐33 0 700 700 627 395 2506 72 77 3678 2978
2033‐34 0 756 756 693 437 2770 80 85 4065 3309
2034‐35 0 817 817 766 483 3062 88 94 4494 3677
2035‐36 0 882 882 847 534 3384 98 104 4967 4085
2036‐37 0 953 953 936 590 3740 108 115 5490 4537
2037‐38 0 1029 1029 1035 652 4134 119 128 6068 5039
2038‐39 0 1112 1112 1144 721 4570 132 141 6707 5596
2039‐40 0 1201 1201 1264 797 5051 146 156 7414 6213
2040‐41 454 1297 1751 1455 864 5750 418 173 8660 6908
2041‐42 0 1491 1491 1608 955 6356 462 192 9572 8080
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐30
Year Capital
RunningExpense of MRTS
Total Costs
Savings Buses
FromOthers Vehicles
Savings From Total Savings
Net CashFlow
Rs. in Cr. Time VOC POL
2042‐43 3088 1611 4699 1777 1055 7025 510 212 10580 5881
2043‐44 0 1740 1740 1498 890 5923 430 179 8919 7180
2044‐45 0 1879 1879 1528 907 6041 439 182 9098 7219
2045‐46 0 2030 2030 1559 926 6162 447 186 9280 7250
2046‐47 0 2193 2193 1590 944 6285 456 190 9465 7273
2047‐48 0 2369 2369 1622 963 6411 466 193 9655 7286
2048‐49 0 2559 2559 1654 982 6539 475 197 9848 7288
2049‐50 0 2765 2765 1687 1002 6670 484 201 10045 7280
2050‐51 498 2987 3486 1721 1022 6803 494 205 10246 6760
2051‐52 0 3414 3414 1756 1042 6939 504 209 10450 7037
2052‐53 0 3687 3687 1791 1063 7078 514 213 10659 6972
2053‐54 0 3984 3984 1826 1084 7220 524 218 10873 6889
2054‐55 0 4304 4304 1863 1106 7364 535 222 11090 6787
2055‐56 0 4650 4650 1900 1128 7511 545 227 11312 6662
2056‐57 0 5024 5024 1938 1151 7662 556 231 11538 6515
0 5428 5428 1977 1174 7815 568 236 11769 6341
IRR 14.95%
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐31
13.3.8 Sensitivity Analysis
A sensitivity analysis of the EIRR with 10% cost overrun and 10% reduction in traffic
materialization (separately) has been carried out. The EIRRs under these scenarios are given
in Table 13.16.
TABLE 13.16: PROJECT EIRR – SENSITIVITY ANALYSIS
Sensitivity Parameter EIRR (%)
Basic EIRR 14.95
With increase in cost by 10% 14.14
With reduction in traffic materialization by 10% 14.20
With 10% reduction in traffic and increase in cost by 10% 13.42
With increase in cost by 20% 13.43
It can be seen from the above table that 10% increase in cost affects economic viability more
than it does in case of reduction in traffic for the project. Accordingly, it is recommended
that controls should be exercised to keep the project cost under control.
13.4 FINANCIAL ANALYSIS
The financial analysis has been carried out individual corridors and also for the two MRTS
corridors combined. Accordingly, the capital costs and O&M costs for the two corridors have
been added to arrive at the total capital and O& M costs.
13.4.1 Capital Cost Estimates
The Construction cost of the metro corridors at Jan’ 2016 prices is estimated at Rs. 10946
Crore. The cost of land is estimated at Rs. 475 Crore including Rs. 441 Crore for private land
and the cost of government land has been estimated at Rs 35 Crore. The total cost of project
including land cost is estimated at Rs. 11,421 Crore.
The Central and State taxes and duties (Customs, Excise and VAT) amount to Rs. 1712Crore.
The capital cost components at Jan '16 prices are given in Table 13.17.
TABLE 13.17: CAPITAL COSTS (Rs. in Crore)
Cost Component Corridor I Corridor II Total
Construction Cost Including land 7836 3585 11421
Land Cost 438 37 475
Private land 419 22 441
Govt land 20 15 35
Construction Cost excluding land 7398 3548 10946
Taxes 1157 555 1712
Central Taxes 950 455 1405
State Taxes 207 100 307
Total Cost with Land & Taxes 8993 4140 13133
Total Cost with Central Taxes only 8786 4040 12826
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐32
13.4.2 Completion Cost
With escalation factor of 7.5 % p.a., the Completion Cost of the project including land is
estimated to be Rs. 15,743 Crore and with central taxes it is estimated at Rs 17,702 Crore.
For financial analysis both govt and private land costs have been considered as acquisition of
govt land will also require payouts. The land cost has not been escalated since land
acquisition would be completed in the initial two years. It is proposed to start land
acquisition and construction work prior to Year 2017 and commission the system by Year
2023. The details of completion cost under different scenarios are as per Table 13.18.
TABLE 13.18: DETAILS OF COMPLETION COSTS (Rs in Crore)
Particulars Completion Cost
Cost without taxes 15,743
With Central Taxes 17,702
With both Central and State taxes 18,130
13.4.3 Requirement of Funds
The year wise requirement of funds under different scenarios has been given in Table 13.19
(Without any Taxes), in Table 13.20 (With Central and State Taxes) and Table 13.21 (With
Central Taxes only). The cost of land is divided into two initial years during which it is
expected that the land acquisition work would be over and related payments would be
released.
TABLE 13.19: YEAR WISE FUND REQUIREMENTS WITHOUT TAXES (Rs. in Crore)
YEAR COMPLETION COST LAND COST TOTAL COMPLETION COST
2017‐2018 588 238 826
2018‐2019 1,265 238 1,503
2019‐2020 2,040 2,040
2020‐2021 2,193 2,193
2021‐2022 3,143 3,143
2022‐2023 4,223 4,223
2023‐2024 1,816 1,816
Total 15267 475 15743
TABLE 13.20: YEAR WISE FUND REQUIREMENTS WITH TAXES (Rs in Crore)
Year Completion Cost Land Cost Taxes Total Completion Cost
2017‐2018 588 238 92 918
2018‐2019 1265 238 198 1700
2019‐2020 2040 319 2359
2020‐2021 2193 343 2536
2021‐2022 3143 492 3634
2022‐2023 4223 660 4884
2023‐2024 1816 284 2100
Total 15267 475 2388 18130
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐33
TABLE 13. 21: YEAR WISE FUND REQUIREMENTS WITH CENTRAL TAXES (Rs in Crore)
Year Completion Cost Land Cost Taxes Total Completion Cost
2017‐2018 588 238 76 902
2018‐2019 1265 238 162 1665
2019‐2020 2040 262 2301
2020‐2021 2193 281 2474
2021‐2022 3143 403 3546
2022‐2023 4223 542 4765
2023‐2024 1816 233 2049
Total 15267 475 1959 17702
13.4.4 Additional Investment
To cater to increased traffic demand, investment will have to be made for purchase of
additional coaches and augmentation of maintenance infrastructure. The total additional
investment for additional Rolling Stock and related equipment to take care of the increased
traffic will be Rs. 263 Crore in the Years 2031 and Rs. 535 Crore in Year 2041 and Rs 586
Crore would be required in the year 2051.
13.4.5 Operation & Maintenance Costs
The details of O&M costs are given at Para 10.2 of this Chapter. The total O&M cost in the
year 2023 is estimated at Rs. 385 Crore. The total O&M cost in the year 2031is estimated at
Rs. 713 Crore.
13.4.6 Replacement Cost
The replacement costs are provided for meeting the cost on account of replacement of
equipments due to wear and tear. The replacement cost for the corridors is estimated to be
Rs. 3633 Crore in the year 2043. The year wise O&M cost and additional investments for two
MRTS corridors are presented in Table 13.22.
TABLE 13.22: OPERATION AND MAINTENANCE COSTS (Rs in Crore)
Year Staff Cost
(A)
Maintenance Expenses
(B)
Energy Charges
(C)
Total O&M Cost
(A+B+C)
Additional Rolling Stock / Replacement Cost
2023 123 65 197 385 0
2024 134 70 212 416 0
2025 146 75 228 449 0
2026 159 81 245 485 0
2027 173 87 264 524 0
2028 189 94 283 566 0
2029 206 101 305 611 0
2030 224 108 327 660 0
2031 244 116 352 713 263
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13.4.7 Revenues
i. Projected Traffic Demand
The ridership on the proposed Varanasi metro system has been estimated at 5.09 Lakh
passenger trips per day in the year 2021 which will materialise by 2023 when MRTS comes in
operation. The ridership figures for key horizon years are given in Table 13.23. After 2041,
the traffic has been assumed to grow @ of 3% per annum.
TABLE 13.23: EXPECTED RIDERSHIP ON PHASE‐I MRTS CORRIDORS IN HORIZON YEARS
PASSENGER TRIPS PER DAY (Lakh)
Year CORRIDOR 1 CORRIDOR 2 TOTAL
2022 3.18 1.91 5.09
2032 4.20 2.52 6.72
2042 5.97 3.18 9.15
2032 266 125 419 810 0
2033 290 135 450 875 0
2034 316 145 484 945 0
2035 345 156 520 1021 0
2036 376 167 559 1102 0
2037 410 180 601 1191 0
2038 447 193 646 1286 0
2039 487 208 695 1389 0
2040 531 223 747 1501 0
2041 578 240 803 1621 535
2042 630 258 976 1864 0
2043 687 277 1049 2013 3633
2044 749 298 1127 2175 0
2045 816 321 1212 2349 0
2046 890 345 1303 2537 0
2047 970 371 1401 2741 0
2048 1057 398 1506 2961 0
2049 1152 428 1618 3199 0
2050 1256 460 1740 3456 0
2051 1369 495 1870 3734 586
2052 1492 532 2243 4267 0
2053 1627 572 2411 4609 0
2054 1773 615 2592 4979 0
2055 1933 661 2786 5379 0
2056 2107 710 2995 5812 0
2057 2296 764 3220 6279 0
2058 2503 821 3461 6785 0
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ii. Trip Length Distribution
The trip length distribution has been taken on the basis of the available details on land use,
corridor composition and existing traffic characteristics in the catchment areas of various
sections of the corridor. Average trip length on the corridor is about 7.7 km. The trip length
distribution is given in Table 13.24 and Figure 13.1.
TABLE 13.24: TRIP LENGTH DISTRIBUTION
Trip Length (Km) % Distribution
0‐2 10.3%
2‐4 11.2%
4‐6 19.0%
06 – 09 22.0%
09 – 12 21.8%
12 – 15 9.0%
15 – 18 4.4%
18 – 21 1.0%
21 – 24 1.0%
>24 0.3%
Total 100%
FIGURE 13.1: EXPECTED TRIP DISTRIBUTION ON THE PROPOSED METRO CORRIDOR
iii. Fare Structure
LMRC has proposed a fare structure for Lucknow Metro for the year 2018 with the increase
by 10 % every 2nd year (Table 13.25). Same fare structure is being proposed to be adopted
for Varanasi Metro also.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0‐2 2‐4 4‐6 06 –09
09 –12
12 –15
15 –18
18 –21
21 –24
>24
Series1
Trip length Distribution
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February, 2016 Page 13‐36
TABLE 13.25: MRTS FARE STRUCTURE FOR VARANASI METRO
Year Distance Slab (in Km)
0‐2 2‐4 4‐6 6‐9 9‐12 12‐15 15‐18 18‐21 21‐24 >24
2018 12 15 18 23 25 28 29 32 34 35
2019 12 15 18 23 25 28 29 32 34 35
2020 13 17 20 25 28 31 32 35 37 39
2021 13 17 20 25 28 31 32 35 37 39
2022 15 18 22 28 30 34 35 39 41 42
2023 15 18 22 28 30 34 35 39 41 42
2024 16 20 24 31 33 37 39 43 45 47
2025 16 20 24 31 33 37 39 43 45 47
2026 18 22 26 34 37 41 42 47 50 51
2027 18 22 26 34 37 41 42 47 50 51
2028 19 24 29 37 40 45 47 52 55 56
2029 19 24 29 37 40 45 47 52 55 56
2030 21 27 32 41 44 50 51 57 60 62
2031 21 27 32 41 44 50 51 57 60 62
2032 23 29 35 45 49 55 57 62 66 68
2033 23 29 35 45 49 55 57 62 66 68
2034 26 32 39 49 54 60 62 69 73 75
2035 26 32 39 49 54 60 62 69 73 75
2036 28 35 42 54 59 66 68 75 80 83
2037 28 35 42 54 59 66 68 75 80 83
2038 31 39 47 60 65 73 75 83 88 91
2039 31 39 47 60 65 73 75 83 88 91
2040 34 43 51 66 71 80 83 91 97 100
2041 34 43 51 66 71 80 83 91 97 100
2042 38 47 56 72 78 88 91 100 107 110
2043 38 47 56 72 78 88 91 100 107 110
2044 41 52 62 79 86 97 100 110 117 121
2045 41 52 62 79 86 97 100 110 117 121
2046 46 57 68 87 95 106 110 122 129 133
2047 46 57 68 87 95 106 110 122 129 133
2048 50 63 75 96 104 117 121 134 142 146
2049 50 63 75 96 104 117 121 134 142 146
2050 55 69 83 106 115 129 133 147 156 161
2051 55 69 83 106 115 129 133 147 156 161
2052 61 76 91 116 126 142 147 162 172 177
2053 61 76 91 116 126 142 147 162 172 177
2054 67 83 100 128 139 156 161 178 189 195
2055 67 83 100 128 139 156 161 178 189 195
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February, 2016 Page 13‐37
iv. Other sources of revenues
Other sources of revenues considered are the advertisement and limited property
development within the stations. It is possible to raise resources through leasing of parking
rights at stations, advertisement on trains and tickets, advertisements within stations and
parking lots, advertisements on other metro structures, co‐branding rights to corporates,
film shootings and special events on metro premises. There could also be some revenue
from small kiosks at the stations including those for soft drinks, tea coffee, telecom
companies and bank ATM’s. This has been estimated at 10% of the fare box revenues during
operations.
13.4.8 Financial Internal Rate of Return
The project FIRR with the project costs including only Central taxes and projected revenue
has been worked out. Further, the security to Varanasi Metro may be provided through
CISF. Though the security cost is included in the Financial analysis, this may be borne by the
Government, thereby improving the FIRR to that extent.
Project FIRR for both the corridors combined works out to ‐0.32%. To make the project
viable as per MOUD norms, additional sources of revenue would be required to bring the
project FIRR >8%. The FIRR calculations are presented in Tables 13.26.
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February, 2016 Page 13‐38
TABLE 13.26: PROJECT FIRR ‐ COSTS WITH CENTRAL TAXES WITHOUT PROPERTY DEVELOPMENT ( BOTH CORRIDORS)
(Rs in Crore)
Year Completion
Cost Land Cost
Total Taxes
Total Completion Cost
Fare Box Revenue
Revenue from Adv & PD
Gross Revenue O&M Cost
Additional Capital
Operational Surplus
2017‐18 588 238 76 902 0.00 0.00 0 -902
2018‐19 1265 238 162 1665 0.00 0.00 0 -1665
2019‐20 2040 262 2301 0.00 0.00 0 -2301
2020‐21 2193 281 2474 0.00 0.00 0 -2474
2021‐22 3143 403 3546 0.00 0.00 0 -3546
2022‐23 4223 542 4765 0.00 0.00 0 0 -4765
2023‐24 1816 233 2049 513 51 565 385 0 -1869
2024‐25 528 53 581 416 0 165
2025‐26 597 60 657 449 0 208
2026‐27 614 61 675 485 0 190
2027‐28 694 69 764 524 0 240
2028‐29 714 71 785 566 0 220
2029‐30 808 81 888 611 0 277
2030‐31 878 88 966 660 263 43
2031‐32 993 99 1092 713 0 379
2032‐33 1021 102 1123 810 0 313
2033‐34 1155 115 1270 875 0 395
2034‐35 1187 119 1306 945 0 361
2035‐36 1343 134 1477 1021 0 456
2036‐37 1381 138 1519 1102 0 416
2037‐38 1562 156 1718 1191 0 527
2038‐39 1606 161 1766 1286 0 480
2039‐40 1816 182 1998 1389 0 608
2040‐41 1924 192 2116 1501 535 81
2041‐42 2183 218 2401 1621 0 779
2042‐43 2116 212 2328 1864 3633 -3170
2043‐44 2398 240 2638 2013 0 624
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Year Completion
Cost Land Cost
Total Taxes
Total Completion Cost
Fare Box Revenue
Revenue from Adv & PD
Gross Revenue O&M Cost
Additional Capital
Operational Surplus
2044‐45 2470 247 2717 2175 0 542
2045‐46 2798 280 3078 2349 0 729
2046‐47 2882 288 3170 2537 0 633
2047‐48 3265 327 3592 2741 0 851
2048‐49 3363 336 3700 2961 0 739
2049‐50 3811 381 4192 3199 0 993
2050‐51 3925 393 4318 3456 586 275
2051‐52 4447 445 4892 3734 0 1157
2052‐53 4580 458 5039 4267 0 772
2053‐54 5190 519 5709 4609 0 1099
2054‐55 5345 535 5880 4979 0 900
2055‐56 6056 606 6662 5379 0 1282
2056‐57 6238 624 6862 5812 0 1050
2057‐58 7068 707 7774 6279 0 1495
2058‐59 7280 728 8008 6785 0 1223
15267 475 1959 17702 94748 9475 104223 81692 5017 -1411
IRR -0.32%
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February, 2016 Page 13‐40
a) Value Capture from Real Estate
To make the project financially viable, value capture from real estate has been
explored. With the construction of metro, the cost of property/ land along the
corridor increases manifolds due to improved connectivity. Varanasi Development
Authority may decide to capture the value of real estate along the corridor to fund
the project.
UP government vide letter no 03/8‐3‐15‐198 vividh/14 dated 4th March has issued
guidelines for development along the transit corridors. As per these guidelines 60%
of the total area available with FAR 4 for property development shall be used for
commercial activity development and balance 40% shall be used for residential
activity development.
Estimation of revenue generated from Value capture is based on following
assumptions:
1. SPV will engage a developer for generating rental income. The developer will bring
equity of 25% and balance amount shall be raised by SPV as market debt.
2. The Development shall include both residential and commercial properties.
Residential properties will be for outright sale whereas commercial properties will
be given on rental basis.
3. For estimating revenue from property development, rental and sale rates for
commercial and residential properties have been worked out based on Circle Rates
of Varanasi. The rates assumed are Rs 30000/ sq mt for outright sale of residential
properties and Rs.400 /sq mt/ month as the rental rates for commercial properties.
4. Return to the developer: 14%
5. Lease rental rate would increase @ 5% every year.
6. The rate of interest for market debt will be 12%.
Possibility of property development along the MRTS corridors was explored with city
authorities in detail. Total 5 locations with plot area of 3.4 hectares have been identified
along the corridors for property development. As per GoUP guidelines on TOD, property
development @ 4 FAR has been assumed at these locations. Moreover, property
development over MRTS depot( on 12 hectares out of total of 15 Hectares of land ) has also
been assumed @ 3 FAR. Total of 4.97 Lakh Sq meters of space has been identified for
property development. Based on above assumptions, the total cost of the property
development will be Rs 1127 Crore. The developer will bring equity of Rs 282 Crore (25%)
and balance Rs 845 Crore ( 75%) would be raised from market. the rental income will accrue
from the year 2023‐2024 which has been escalated @5% every year. Out of the estimated
rental income, the developer will bear the maintenance expenditure, will repay the loan and
interest. after meeting these obligations and retaining 14% return on his equity the residual
rental earning will accrue to SPV. Escalation of 5% has been assumed on these calculations.
These earnings from PD have been taken into account in FIRR calculations. The details of
income from property development is given in Table 13.27.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐41
TABLE 13.27: ESTIMATED RENTAL INCOME FROM PROPERTY DEVELOPMENT (Rs. in Crore)
Year Construction Costs
Rental Income
O&M Debt IDC Total Loan
Payment
Loan Repayment
Balance Loan
Amount
Interest
Return @ 14%
Residual Income to
SPV
17 ‐ 18 166 124 124 ‐47
18 ‐ 19 174 130 15 145 ‐47
19 ‐ 20 183 137 31 168 ‐47
20 ‐ 21 192 144 47 191 ‐47
21 ‐ 22 201 151 64 215 ‐47
22 ‐ 23 211 159 82 241 ‐47
23 ‐ 24 652 65 101 101 119 1067 12 39 417
24 ‐ 25 663 66 119 949 128 41 308
25 ‐ 26 233 23 119 830 114 43 ‐66
26 ‐ 27 245 24 119 711 100 46 ‐43
27 ‐ 28 257 26 119 593 85 48 ‐21
28 ‐ 29 270 27 119 474 71 50 3
29 ‐ 30 283 28 119 356 57 53 27
30 ‐ 31 298 30 119 237 43 55 51
31 ‐ 32 312 31 119 119 28 58 76
32 ‐ 33 328 33 119 0 14 61 101
33 ‐ 34 344 34 64 246
34 ‐ 35 362 36 67 258
35 ‐ 36 380 38 71 271
36 ‐ 37 399 40 74 285
37 ‐ 38 419 42 78 299
38 ‐ 39 440 44 82 314
39 ‐ 40 462 46 86 329
40 ‐ 41 485 48 90 346
41 ‐ 42 509 51 95 363
42 ‐ 43 534 53 100 381
43 ‐ 44 561 56 105 400
44 ‐ 45 589 59 110 420
45 ‐ 46 619 62 115 441
46 ‐ 47 650 65 121 463
47 ‐ 48 682 68 127 487
48 ‐ 49 716 72 134 511
49 ‐ 50 752 75 140 537
50 ‐ 51 790 79 147 563
51 ‐ 52 829 83 155 592
52 ‐ 53 870 87 162 621
53 ‐ 54 914 91 170 652
54 ‐ 55 960 96 179 685
55 ‐ 56 1008 101 188 719
56 ‐ 57 1058 106 197 755
57 ‐ 58 1111 111 207 793
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐42
v. Total Revenue
The total annual revenue through the fare box , property development and other sources for
the study corridors is given in Table 13.28.
TABLE 13.28: TOTAL REVENUE COLLECTION (Rs. in Crore)
Source of Revenue 2021 2031 2041
Fare Box Revenue 513 993 2183
Revenue from other Sources 51 99 218
Revenue from Real Estate 417 246 400
Total Revenue 982 1338 2801
13.4.9 Financial Internal Rate of Return
The project FIRR with the project costs including only Central taxes and property
development has been worked out. The FIRR of the project with limited identified property
development improves from ‐0.32% to 1.94 %.
To make the project viable as per MOUD norms, additional PD of 35 lakh sq mts (about 75
Ha land) would be required to bring the project FIRR at 8.12%.
The issue of availability of government land required to increase project FIRR was
discussed with city authorities and it was communicated that Varanasi being a old city and
availability of government land of this magnitude is not available.
Varanasi is a heritage city and attracts lot of international tourist throughout the year.
Considering the importance of the city, the provision of the good infrastructure facilities
becomes the responsibility of both the state and central governments. To further improve
project FIRR , it is proposed that both state and central governments each give 10% of the
project cost as grant to the project ( total 20%). This would be in addition to equity
contribution of both the governments.
With Grant scenario, The FIRR of the project without property development improves from
‐0.32% to 0.53 % and with property development of approximately 5 Lakh sq mts on
identified land along the corridor, the project IRR becomes improves from 1.94 % to 2.86%.
13.4.10 Conclusions
As per MOUD circular no K‐14011/1/2007‐UT‐IV dated 30th August 2013, FIRR of about 8% is
required for an Urban Mass Transit project. Varanasi MRTS project however, cannot support
itself and shall require Govt. support for implementation. With limited property
development and support from both state and central Governments, the project has positive
FIRR of 2.86%. Considering the special status of Varanasi city as heritage city and the need
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐43
of the city to have fast efficient mass transport system, it is recommended that the
condition of 8% FIRR may be relaxed and project is approved for implementation.
The FIRR calculations are presented in Tables 13.29.
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐44
TABLE 13.29: PROJECT FIRR BOTH CORRIDORS ‐ WITH PROPERTY DEVELOPMENT & GRANT FROM STATE AND CENTRRAL GOVERNMENTS (Rs in Crore)
Year Completion
Cost Land Cost
Total Taxes
Total Completion Cost
Fare Box Revenue
Revenue from Adv & PD
Additional Revenue
Gross Revenue
O&M Cost Additional Capital
Operational Surplus
2016‐17 471 238 60 769 0.00 0.00 0 -769
2017‐18 1012 238 130 1380 0.00 0.00 0 -1380
2018‐19 1632 209 1841 0.00 0.00 0 -1841
2019‐20 1754 225 1979 0.00 0.00 0 -1979
2020‐21 2514 323 2837 0.00 0.00 0 -2837
2021‐22 3378 434 3812 0.00 0.00 0 -3812
2022‐23 1453 186 1639 -1639
2023‐24 513 51 417 982 385 0 596
2024‐25 528 53 308 889 416 0 473
2025‐26 597 60 -66 591 449 0 142
2026‐27 614 61 -43 632 485 0 147
2027‐28 694 69 -21 743 524 0 220
2028‐29 714 71 3 788 566 0 223
2029‐30 808 81 27 915 611 0 304
2030‐31 878 88 51 1017 660 0 357
2031‐32 993 99 76 1168 713 263 192
2032‐33 1021 102 101 1224 810 0 414
2033‐34 1155 115 246 1516 875 0 641
2034‐35 1187 119 258 1564 945 0 619
2035‐36 1343 134 271 1748 1021 0 727
2036‐37 1381 138 285 1803 1102 0 701
2037‐38 1562 156 299 2016 1191 0 826
2038‐39 1606 161 314 2080 1286 0 794
2039‐40 1816 182 329 2327 1389 0 938
2040‐41 1924 192 346 2462 1501 0 961
2041‐42 2183 218 363 2764 1621 535 608
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐45
Year Completion
Cost Land Cost
Total Taxes
Total Completion Cost
Fare Box Revenue
Revenue from Adv & PD
Additional Revenue
Gross Revenue
O&M Cost Additional Capital
Operational Surplus
2042‐43 2116 212 381 2709 1864 0 845
2043‐44 2398 240 400 3038 2013 3633 -2609
2044‐45 2470 247 420 3137 2175 0 962
2045‐46 2798 280 441 3519 2349 0 1170
2046‐47 2882 288 463 3634 2537 0 1096
2047‐48 3265 327 487 4079 2741 0 1338
2048‐49 3363 336 511 4211 2961 0 1250
2049‐50 3811 381 537 4728 3199 0 1529
2050‐51 3925 393 563 4881 3456 0 1425
2051‐52 4447 445 592 5483 3734 586 1163
2052‐53 4580 458 621 5660 4267 0 1393
2053‐54 5190 519 652 6361 4609 0 1751
2054‐55 5345 535 685 6565 4979 0 1585
2055‐56 6056 606 719 7381 5379 0 2001
2056‐57 6238 624 755 7617 5812 0 1805
7068 707 793 8567 6279 0 2288
7280 728 1050 9058 6785 0 2273
12214 475 1568 14257 87468 8747 13633 117856 81692 5017 14617
IRR % 2.86
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐46
13.5 FUNDING OPTIONS
Metro Rail Projects are highly capital intensive with long gestation period. Given the tariff
constraints, they are not commercially attractive for investment. However, the MRTS project
have immense economic benefits to the society.
Experience all over the world reveals that both construction and operations of a metro are
highly subsidized and funded by the Government. Singapore had a 100% capital contribution
from the government, Hong Kong 78% for the first three lines and 66% for the subsequent 2
lines. Others run on Governmental support and subsidies. In India also the Phase‐I, Phase‐II
and Phase III of Delhi MRTS , Chennai, Bangalore Metros systems have been funded with a
mixture of equity and debt (ODA) by GOI and state governments. Thus, the involvement of
Government in the funding metro systems is foregone conclusion.
If commercial capital city of Utter Pradesh is to have Metro System on self sustainable basis,
it is necessary to keep down the capital cost as much as possible by way of giving
government land as grant /exempting taxes for the project and also required funding is made
available from the Government sources.
13.6 FINANCING MODELS ADOPTED IN INDIAN CITIES
The financing options depends on the selection of the dedicated agency created to
implemented to implement the project. Number of Indian cities have operational /under
construction MRTS system. Different financing models have been adopted for financing of
the MRTS system. These include
Government Funding
Special Purpose Vehicle (SPV) under the State Government Control
Public Private Partnership
Private sector
SPV model is the most successful model of metro funding and has been adopted in most
cities. Subsequent paragraphs discuss the Indian experience of MRTS funding.
13.6.1 Government Funding
As the name suggests, this funding model involves the complete funding of the metro
system by Central/State Government. Metro Railway, Kolkata has been funded on this
model. It is the first underground Metro Railway in India. The Metro Railway Kolkata was
constructed progressively from 1972 to 1995 by the Indian Railways who also operate the
system on a highly subsidized fare. The Metro Corridor has since been extended from Tolly
Ganj to Garia. Due to capital intensive nature of the metro systems and financial constraints
faced by the government, no metro system has been planned on this model after Metro Rail
Kolkata.
Detailed P
Final Report
13.6.2 S
U
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SPV with Jo
Under SPV p
venture betw
project and
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a commercia
of the proje
State Govern
oan from
Corporation,
the example
financial mod
Kolkata Met
Kolkata Metr
Government
13.77 KMs of
by GOI & G
construction
n Figure13.2
Delhi Metro
Delhi Metro
capital city.
equity contr
ength was c
Japanese OD
equity and s
second phas
for Rail Based M
oint Ventu
pattern of fin
ween Centra
for its su
t of India and
al enterprise
ct cost as th
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es of success
dels of these
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FIGURE 1
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13.2: FUNDIN
ation was es
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debt apart
project cov
ystem in Varana
February, 20
en GOI & S
tern, a Speci
nt and State
Operation &
ernment ma
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contribution
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rporation &
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stablished in
ed as a Joint
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The balance
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State Govt
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to 40%. Rem
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ER 13: COST EST
Vehicle (SPV
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55% has been
CA ODA Loa
of the line is
tro rail syste
& GNCTD w
ring 65.1 KM
oject was fu
by GOI & G
Developme
n the Delhi
FINANCIALS
Page 13‐47
as a joint
on of the
ngement
un SPV as
bute 20%
buted by
d as soft
etro Rail
some of
ils of the
gal State
uction of
n funded
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depicted
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unded by
NCTD as
ent. The
Area has
Detailed P
Final Report
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roject Report f
t
also been fun
raising of par
The extensi
been undert
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Delhi Metro
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depicted in F
FIGURE 13
FIGURE 13
FIGURE 13.
Mass Transit Sy
h the govern
om Property
nal Capital R
MRC as a dep
ese states.
etwork is o
loans from
Figure 13.3,1
3.3: FUNDIN
.4: FUNDIN
.5: FUNDING
ystem in Varana
February, 20
nments in the
y Developme
Regions (NCR
posit work w
of 103.5 Km
JICA. The fu
13.4, & 13.5.
G PATTERN
G PATTERN
G PATTERN O
asi
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16
e same patte
ent and inter
R) viz., Noida
with the enti
is expected
nding patter
.
OF DELHI M
OF DELHI M
OF DELHI ME
ER 13: COST EST
ern with JICA
nal accruals.
a, Gurgaon a
ire cost othe
d to cost Rs
rn of Delhi M
ETRO PHASE
ETRO PHASE
ETRO PHASE
TIMATES AND F
P
A funding of
and Vaishali
er than Rolli
s 35242 Cror
Metro Phase‐
E I
E II
E III
FINANCIALS
Page 13‐48
46% and
are also
ing Stock
re and is
‐I, II and
Detailed P
Final Report
B
B
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b
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h
B
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C
C
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4
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roject Report f
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Bangalore M
Bangalore M
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been funded
JICA ODA Loa
has already
Bangalore fo
the line is de
Chennai Met
Chennai Me
Tamilnadu St
construction
40.78% has b
ODA Loan. T
funding patte
for Rail Based M
Metro
Metro Rail C
tate Governm
of 33 KM o
d by GOI & G
an. First Pha
enacted a l
or raising the
epicted in Fig
FIGURE 13.
tro
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of 45.046 K
been funded
The construc
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FIGURE
Mass Transit Sy
Corporation
ment with e
f metro. Ou
GOKN and t
ase of projec
aw to charg
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.6: FUNDING
rporation h
ment with e
KM of metro
by GOI & GO
ction works
ne is depicte
E 13.7: FUND
ystem in Varana
February, 20
has been fo
equal equity
ut of the esti
he balance 4
ct has started
ge Rs. 2 a li
ired for Met
G PATTERN O
as been fo
equal equity
o. Out of t
OTN and the
of Phase‐I
d in Figure 1
DING PATTER
asi
CHAPTE
16
ormed as a
contribution
imated total
45% is being
d operation
tre on diese
ro Project. T
OF BANGALO
rmed as a
contribution
he estimate
e balance 59.
project is u
13.7.
RN OF CHENN
ER 13: COST EST
Joint Ventu
n by these t
cost of Rs.
g raised as s
recently. Th
el and petro
The approve
ORE METRO
Joint Ventu
n by these t
d total cost
.22% is being
under progre
NAI METRO
TIMATES AND F
P
ure between
wo governm
6395 Crore,
senior debt i
he state Gov
ol sold in th
ed funding p
ure between
two governm
of Rs. 1460
g contributed
ess. The a
FINANCIALS
Page 13‐49
n GOI &
ments for
55% has
including
vernment
e city of
attern of
n GOI &
ments for
00 Crore,
d by JICA
approved
Detailed P
Final Report
13.6.3 P
T
t
a
t
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t
t
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Public Priv
This model o
this model ,
and maintain
to cost of la
nfrastructur
Government
the project. T
to bid for su
range of 16‐1
However, In
Mumbai Line
systems. Sub
system.
Delhi Airport
DMRC has im
Airport and
private secto
mplemented
works with t
and DDA (54
operator wh
DMRC. The a
There have
system.
Mumbai Me
n contrast t
Delhi, Banga
Operate & Tr
for Rail Based M
vate Partne
of MRTS find
the private
ning the ent
nd only. Un
e projects,
t provided th
The metro b
ch a project
18% or a com
spite of the
e 1&2, and H
bsequent pa
t Line under
mplemented
further exte
or participat
d under a u
the funds be
4%) and the
o will operat
approved fun
been some
FIGURE
tro Line 1 &
to the SPV m
alore, Chenn
ransfer (BOO
Mass Transit Sy
ership
ding involves
firm will be
tire project.
nder Viabilit
MRTS pr
he state gov
eing a social
. Besides, th
mfort of guar
e constraint
Hyderabad M
rVaranasiph
PPP Model
d a High Spe
ension to Se
ion. The pro
unique mode
eing contribu
cost of syste
te the system
nding pattern
issues with
E 13.8: FUND
2
model adopt
nai & Kolkat
OT) model in
ystem in Varana
February, 20
s the private
responsible
The contribu
ty gap Fundi
roject is elig
vernment als
sector proje
he private op
ranteed ride
s of this fun
MRTS have a
s give the de
eed Airport
ector‐21, Dw
oject with an
el of PPP wh
uted by GOI,
ems and Rol
m for 30 yea
n of the line
h the conces
DING PATTER
ted for cons
a, the Maha
the city of M
asi
CHAPTE
16
e sector part
e for financin
ution of the
ng(VGF) sch
gible for VG
so contribute
ect not much
perator expe
rship.
nding model
adopted this
etails of the
Link from N
warka cover
n estimated
here in the
, GNCTD, De
lling Stock (4
rs, after whi
is depicted i
ssionaire an
RN OF AIRPO
struction of
arashtra gov
Mumbai. So
ER 13: COST EST
icipation on
ng designing
governmen
heme of Cen
GF up to 20
es same or
h private com
ects assured
l, Airport
model for f
financial m
New Delhi Ra
ing a distan
cost of Rs. 3
DMRC has
elhi Internati
46%) is being
ich the syste
n Figure 13.
nd DMRC is
ORT LINE
metro rail s
vernment ha
far, 2 lines c
TIMATES AND F
P
different m
g, building, o
t is generall
ntral Govern
0% from the
more funds
mpanies are
rate of retu
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financing the
odels of the
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nce of 22.7
3869 Crore h
undertaken
ional Airport
g met by the
em will rever
8.
now opera
system in th
as opted Bu
covering a dis
FINANCIALS
Page 13‐50
models. In
operating
y limited
ment for
e Central
towards
available
rn in the
hi Metro,
eir metro
ese MRTS
on to IGI
KM with
has been
the civil
t Limited
e private
rt back to
ating the
he city of
ild Own,
stance of
Detailed P
Final Report
4
c
8
V
a
M
L
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i
L
i
H
G
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44 KMs (Line
crore and Lin
8250 crore) h
Viability Gap
and Rs. 1532
Mumbai Met
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Region Deve
mplement th
Line 1 is n
implementat
Hyderabad M
Hyderabad
Government
Gap Funding
corridors wit
build, and fi
Crore toward
project with
metro.
for Rail Based M
e 1 of 11.07 K
ne 2 of 32 KM
have been a
p Funding by
2 crore for Lin
tro One Priv
eliance ADA G
elopment Au
his project. F
ow operati
tion mechan
FIGURE 13
Metro
Metro is t
of India. Go
g (VGF) sche
th total lengt
nance, oper
ds land acqu
grant of 1
FIGURE 13
Mass Transit Sy
KMs from Ve
Ms from Cha
warded to p
GOI & Maha
ne 1 & Line 2
vate Limited
Group Comp
uthority (MM
Figure 13.9 g
ional. There
nism for Line
3.9: FUNDIN
the first PP
oAP has unde
eme of GoI.
th of about
rate and tra
uisition, R&R
1,458 Crore a
3.10: FUNDI
ystem in Varana
February, 20
ersova – And
arkop – Band
private opera
arashtra Stat
2 respectivel
is a Joint Ve
pany, Veolia
MRDA) incor
gives the fun
e are some
e 2 is being re
NG PATTERN
PP Metro R
ertaken the H
The MRTS
71 km. The
ansfer (DBFO
R package, sh
as VGF. Figur
NG PATTERN
asi
CHAPTE
16
heri ‐ Ghatk
dra – Manku
ator for cons
te Governme
y.
enture Com
Transport, F
porated und
ding pattern
e issues wit
evisited.
N OF MUMBA
Rail Project
Hyderabad M
network in
Project is be
OT) basis. G
hifting of ut
re 13.10 give
N OF HYDER
ER 13: COST EST
opar with a t
urd with an e
struction and
ent to the ex
pany formed
rance and M
der the Com
n of Mumbai
th the conc
AI METRO LI
that has b
Metro Rail Pr
clude three
eing execute
oAP will spe
ilities and G
es the fundin
RABAD METR
TIMATES AND F
P
total cost of
estimated co
d operation
xtent of Rs. 6
d by Relianc
Mumbai Metr
mpanies Act,
Metro Line
cessionaire
NE 1
been sanctio
roject under
high densit
ed by L&T on
end another
GOI will sup
ng plan of Hy
RO
FINANCIALS
Page 13‐51
Rs. 2356
ost of Rs.
by giving
650 crore
e Energy
ropolitan
1956 to
1.
and the
oned by
r Viability
ty traffic
n design,
r 1,980
pport the
yderabad
Detailed Project Report for Rail Based Mass Transit System in Varanasi
Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
February, 2016 Page 13‐52
13.6.4 Private Sector
Gurgaon's Rapid Metro project is India’s first fully privately financed metro. With the project
cost of Rs 1100 crore, it has a network of 5.1 km connecting Cyber City, NH‐8 & Sikanderpur
station (DMRC) in Phase I. The planned route for Rapid Metro acts as a feeder to the MRC’s
Jahangirpuri‐Central Secretariat‐HUDA City Centre (Yellow Line). A special purpose vehicle
(SPV), Rapid Metro Rail Gurgaon Limited (RMGL) was formed to construct, operate and
maintain the metro.
The Indian experience of Metro Rail projects funding suggests that those implemented on
SPV model have been more successful than those implemented with private sector
participation. Under SPV model, extensive government funding support is required either
directly as equity and subordinate debt or through government guaranteed Japanese ODA
loan from JICA. Accordingly, SPV model for funding of Varanasi MRTS is being proposed.
13.7 FINANCING OPTIONS FOR VARANASI MRTS
13.7.1 Equity
Under DMRC/BMRC pattern of financing pattern, a Special Purpose Vehicle (SPV) will be set
up for the implementation of the project and for its subsequent Operation & Maintenance.
Under this arrangement Government of India and Government of Utter Pradesh (GoUP)
shall make equal contribution and run SPV as a commercial enterprise. As per the prevalent
practice, Central Government may be willing to contribute 20% of the project cost as their
equity contribution. An equal amount can be contributed by GoUP aggregating the total
equity to 40%. For the balance 60% funding requirement, options available are as follows: ‐
13.7.2 Debt
The balance cost can be met through loans from various bilateral partners, Local borrowing,
loans from ADB/World Bank and Suppliers Credit.
Official Development Assistance from Bilateral Partners : ‐ Department of Economic
affairs, Ministry of Finance, Government of India has issued policy guidelines no
3/11/2015‐PMU on official Development Assistance for development cooperation with
bilateral partners. This assistance can be availed can be availed of for metro rail projects.
The prevailing interest rate is 0.3% p.a. The loan is repayable in 40 years including
moratorium period of 10 years. The loan assistance is for the total project cost excluding
taxes and land costs. The loan is provided to Central Government which in turn releases the
same to SPV under a Pass Through Assistance (PTA) mechanism.
Since the loan is generally in currency of lending country, any fluctuation in exchange rate at
the time of repayment are generally borne by the Central Government and GoUP in
proportion to which their share holding. The loan in equivalent INR shall be repaid by SPV
from the income streams of metro operations.
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Loan from Asian Development Bank (ADB)/World Bank: ‐ The Loan may also be available
from ADB/World Bank. As per the information available, the loan from World Bank/ ADB is
available to GOI at LIBOR + 2 % per annum. It is considered that the loan shall be passed to
project without any additional charges/ administration cost. At present 12 month LIBOR for
USD is 0.5%.
Domestic Loan from Banks and Financial Institutions: ‐ Funds can be arranged from Indian
Financial Institutions like India Infrastructure Finance Company Limited (IIFCL), India
Development Financing Corporation (IDFC), Life Insurance Corporation of India (LIC), State
Bank of India, IDBI Bank, ICICI Bank Ltd etc. These institutions are increasingly engaged to
fund infrastructure projects subject to their commercial viability. There are many models
available under which the funds can be arranged by these financial institutions with or
without syndicating with other commercial banks. IIFCL e.g. fund 20% of the project cost
and arrange balance through the syndication of commercial banks with a lead banker
among the consortium of bankers. The loan can be given for a period of 20‐30 years with
interest rate ranging from 9.50% to 12% PA. The funding arrangement may require
submission of central government guarantee as well. Since the rate of interest of these
financial institutions is much higher than the interest rates of soft loan provided by JICA,
Central Government and GoUP shall have to bear the interest difference and provide
subsidy to the SPV.
(ii) Subordinate Debt: ‐ For existing Phase‐I , Phase‐II & Phase III projects of Delhi Metro,
land and rehabilitation and resettlement cost have been borne by GOI & GNCTD equally as
interest free subordinate debt. This mezzanine financing is of extreme help in quickening
the pace of the project. In this project Subordinate debt can be procured to pay back state
and central taxes and duties. The loan is of longer duration and becomes repayable only
after other loans raised for the project are repaid.
13.7.3 Involvement of the Government
Government contribution is essential to keep debt‐servicing levels low ‐ with a view to
maintain overall long term sustainability of the system. Government involvement also
generates considerable amount of confidence in other players involved in the process of
construction & operation. The capital investment of Varanasi MRTS is estimated to give an
economic rate of return to the tune of 15 % and the city/society can recover the investment
within 7 to 8 years time. The involvement of Government is very much essential to provide
integrated, efficient public transport system in the Varanasi. Apart from financial support,
social considerations require the involvement of the government to ensure a minimum
essential level of service to the society. The project serving primarily a social purpose/goal,
is needed for improving the overall health of the city.
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13.8 PROPOSED FUNDING FOR THE PROJECT
The total cost of the project including central taxes and land at January '2016 has been
estimated at Rs 12,350 Crore including Rs 1405 Crore towards Central taxes and duties.
i. Grant by State and Central Governments
Considering the importance of the project, it has been assumed that both state and central
governments will give grant to the extent of 10% of the project cost. Accordingly project will
receive Rs 1235 Crore as grant with both the governments amounting to Rs 2470 Crore.
For remaining cost of Rs 9880 Crore at January'2016 prices, the completion costs works out
to Rs 13,781 Crore. Rs 475 Crore of land cost would be extra.
The funding pattern under SPV model would be as under:
ii. Government Contribution
GOI & GOUP to contribute equity of Rs. 5513 Crore which is 40 % of the total completion
cost excluding land. This means that both GOI will share 20 % of the total cost amounting to
Rs. 2756 Crore which includes Rs 2066 Crore (15%) as equity and Rs 691 Crore ( 5%) as
subordinate debt for central taxes. GOUP will also contribute equal amounts towards
equity and subordinate debt for central taxes. In addition GOUP will provide subordinate
debt of Rs 475 Crore towards land required for the project.
iii. Contribution by Local Bodies
Through means of innovative financing, Local bodies will contribute Rs 200 Crore (1.45%)
towards project completion cost
iv. Soft Loans from funding agencies
Remaining project cost of Rs 8069 Crore ( 58.55%) of total completion cost to be funded
through soft loans from funding agencies. The proposed loan shall be tied loan with interest
rate of .03% and payback period of 40 Years including 10 years of moratorium.
In addition to above state taxes of Rs 343 Cr on completion costs basis for both the
corridors has to be reimbursed or exempted by State Government.
Figure 13.11 gives the proposed funding pattern and the Table 13.30 gives the year wise
funds requirement from different sources
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Final Report CHAPTER 13: COST ESTIMATES AND FINANCIALS
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FIGURE 13.11: PROPOSED FUNDING PATTERN UNDER SPV MODEL
TABLE 13.30: PROPOSED FINANCING OF PROJECT
(Rs in Cr)
PARTICULARS CORRIDOR 1 CORRIDOR 2 BOTH CORRIDORS
AMOUNT % AMOUNT % AMOUNT %
Equity by GoI 1396 14.99 670 14.99 2066 14.99
SD for CT by GoI 467 5.01 224 5.01 691 5.01
Equity by Govt of UP 1396 14.99 670 14.99 2066 14.99
SD for CT by Govt of UP 467 5.01 224 5.01 691 5.01
Contribution by Local Bodies 135 1.45 65 1.45 200 1.45
Loan by JICA 5453 58.55 2615 58.55 8069 58.55
Total Cost Excluding Land 9314 100 4467 100 13781 100
SD for land by Govt of UP 438 37 475
GRAND TOTAL 9752 4504 14256
13.8.1 Recommendations
With above funding option as per the detail cash flow given in Tables 13.31, it can be seen
that with property development the project has positive cash flows. Thus, the project has
potential to service its debts liabilities.
It is accordingly recommended that Varanasi MRTS is taken up for implementation.
14.99
5.01
14.99
5.01
1.45
58.55
EQUITY BY GOI
SD FOR CT BY GOI
EQUITY BY GUP
SD FOR CT BY GUP
CONTRIBUTION BY LOCAL BODIES
SOFT LOANS
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TABLE 13.31: CASH FLOW STATEMENT FOR VARANASI MRTS FOR GRANT SCENARIO (Rs in Crore)
Year Project
Completion Cost
O&M Cost Additional & Replacement
Capital DPRCN
Total Costs
Fare box PD
&ADVT Total
Revenue
Net Cash Flow
Equity From GOI & GOUP &Stake Holder
Contribution
Availability Of Cash
Cumulative Cash Cum Loan Loan Loan
Repayment IDC
Cumulative Loan
Including IDC
Interest PBT Cash
BalanceCumulative
Cash
2017‐2018 209 209 ‐209 209 0 0 0 0
2018‐2019 1431 1431 ‐1431 1431 0 0 0 0
2019‐2020 2403 2403 ‐2403 2403 0 0 0 0
2020‐2021 3450 3450 ‐3450 2145 ‐1305 ‐1305 1305 1305 2 1307
2021‐2022 3461 3461 ‐3461 ‐3461 ‐4765 4765 3461 9 4776
2022‐2023 2194 2194 ‐2194 ‐2194 ‐6959 6959 2194 20 6988
2023‐2024 800 385 0 306 1185 513 468 982 ‐204 ‐800 ‐7759 7759 800 7790 21 269 575 575
2024‐2025 310 416 0 326 726 528 361 889 163 ‐310 ‐8069 8069 310 8099 23 123 450 1025
2025‐2026 449 0 315 449 597 ‐6 591 142 ‐8069 8099 24 ‐198 117 1142
2026‐2027 485 0 304 485 614 18 632 147 ‐8069 8099 24 ‐181 123 1265
2027‐2028 524 0 293 524 694 49 743 220 ‐8069 270 7829 24 ‐98 195 1460
2028‐2029 566 0 283 566 714 74 788 223 ‐8069 270 7559 23 ‐84 199 1659
2029‐2030 611 0 273 611 808 107 915 304 ‐8069 270 7289 23 8 281 1941
2030‐2031 660 0 264 660 878 139 1017 357 ‐8069 270 7019 22 71 335 2276
2031‐2032 713 263 254 713 993 175 1168 455 ‐8069 270 6749 21 180 434 2710
2032‐2033 810 0 245 810 1021 203 1224 414 ‐8069 270 6480 20 148 394 3104
2033‐2034 875 0 246 875 1155 361 1516 641 ‐8069 270 6210 19 375 621 3725
2034‐2035 945 0 237 945 1187 377 1564 619 ‐8069 270 5940 19 363 600 4325
2035‐2036 1021 0 229 1021 1343 405 1748 727 ‐8069 270 5670 18 480 709 5035
2036‐2037 1102 0 221 1102 1381 423 1803 701 ‐8069 270 5400 17 463 684 5719
2037‐2038 1191 0 213 1191 1562 455 2016 826 ‐8069 270 5130 16 596 809 6528
2038‐2039 1286 0 206 1286 1606 474 2080 794 ‐8069 270 4860 15 572 778 7306
2039‐2040 1389 0 199 1389 1816 511 2327 938 ‐8069 270 4590 15 724 923 8229
2040‐2041 1501 0 192 1501 1924 538 2462 961 ‐8069 270 4320 14 756 947 9177
2041‐2042 1621 535 185 1621 2183 581 2764 1142 ‐8069 270 4050 13 944 1130 10306
2042‐2043 1864 0 179 1864 2116 593 2709 845 ‐8069 270 3780 12 654 833 11139
2043‐2044 2013 3633 191 2013 2398 640 3038 1025 ‐8069 270 3510 11 822 1013 12153
2044‐2045 2175 0 184 2175 2470 667 3137 962 ‐8069 270 3240 11 768 952 13105
2045‐2046 2349 0 305 2349 2798 721 3519 1170 ‐8069 270 2970 10 856 1161 14265
2046‐2047 2537 0 294 2537 2882 752 3634 1096 ‐8069 270 2700 9 793 1088 15353
2047‐2048 2741 0 284 2741 3265 813 4079 1338 ‐8069 270 2430 8 1045 1330 16682
2048‐2049 2961 0 274 2961 3363 847 4211 1250 ‐8069 270 2160 7 968 1242 17925
2049‐2050 3199 0 265 3199 3811 918 4728 1529 ‐8069 270 1890 6 1258 1523 19448
2050‐2051 3456 0 255 3456 3925 956 4881 1425 ‐8069 270 1620 6 1164 1419 20867
2051‐2052 3734 586 246 3734 4447 1036 5483 1749 ‐8069 270 1350 5 1498 1744 22611
2052‐2053 4267 0 238 4267 4580 1079 5660 1393 ‐8069 270 1080 4 1151 1389 23999
2053‐2054 4609 0 250 4609 5190 1171 6361 1751 ‐8069 270 810 3 1498 1748 25748
2054‐2055 4979 0 241 4979 5345 1219 6565 1585 ‐8069 270 540 2 1342 1583 27330
2055‐2056 5379 0 233 5379 6056 1325 7381 2001 ‐8069 270 270 2 1767 2000 29330
2056‐57 5812 0 225 5812 6238 1379 7617 1805 ‐8069 270 0 1 1579 1804 31134
2057‐58 6279 0 217 6279 7068 1499 8567 2288 2071 2288 33422
2058‐59 6785 0 209 6785 7280 1778 9058 2273 2064 2273 35695
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13.9 IMPLEMENTATION PLAN
13.9.1 Institutional Arrangements
Effective institutional arrangements are needed to enable the Metro project to be
implemented without any loss of time and cost over‐run. The details of possible
arrangements are discussed in following sections.
Setting Up of Special Purpose Vehicle (SPV)
Experience of implementing Delhi Metro project has shown that a Special Purpose Vehicle
(SPV), vested with adequate powers, is an effective organizational arrangement to
implement and subsequently operate and maintain a metro rail project.
SPV named VMRC (Varanasi Metro Rail Corporation Ltd.) shall be incorporated with the
mandate “To establish, Operate and Maintain Guided Urban Transit Systems in and around
Varanasi City so as to meet the urban transport needs of Varanasi”. This SPV with a board of
directors may implement the Varanasi Metro project.
Metro construction is a very specialized and multi‐disciplinary job. It is therefore, impossible
to have a single organizational set up which can be responsible for all aspects of metro
implementation, namely investigation, planning, design, drawing up of specifications,
preparation of tender documents, fixing of contractors, supervising the contractors’ works,
ensuring interface fusion between different contractors, ensuring quality and safety during
constructions, planning and supervising integration system trials and getting the project
commissioned in time.
It is suggested to have a two tier organization with well‐defined responsibilities for getting
this project executed. At the apex will be the VMRC ‐ a lean but effective organization with
full mandate and total power – with accountability. The second level will be a project
management team called “General Consultants” who will be engaged by the VMRC on
contract basis and who will be fully responsible for planning, design and project
management. In fact they will be the “Engineers” for the VMRC, who is the “Client”. The
detailed design consultants as required may be engaged by General Consultants as their Sub‐
Consultants within their own contract responsibilities. Since most of the alignment length is
elevated, it is recommended that the contracts be made on “design and build” basis, based
on broad technical specifications and performance requirements drawn up by the G.C.
International Consultants are very expensive and should be engaged only in area where
Indian experts cannot manage and they should invariably be part of the General Consultants’
team.
High Power Committee
During the implementation of the project several problems with regard to acquisition of
land, diversion of utilities, shifting of structures falling on the project alignment,
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rehabilitation of project affected persons, etc. are likely to arise. For expeditious resolution of
these problems, an institutional mechanism needs to be set up at the State Government
level. Towards this end, it is recommended that a High Power Committee under the
chairmanship of Chief Secretary, Uttar Pradesh should be set up. Other members of this
Committee may be the Secretaries of the concerned Departments of the State Government
and Heads of civic bodies who will be connected in one way or the other with the
implementation of the project. Commissioner, Varanasi and Municipal Commissioner,
Varanasi Nagar Nigam should also be the member of this committee.
This Committee should meet once a month and sort out all problems brought before it by
VMRC and VDA. For Delhi Metro also, such a High Power Committee was set up and it proved
very useful in smooth implementation of the Delhi Metro rail project.
Empowered Committee
At the Central Government level an Empowered Committee, under the chairmanship of
Cabinet Secretary, is presently functioning for Delhi Metro project. Other members of this
Committee are Secretaries of Planning Commission, Ministry of Home Affairs, Ministry of
Urban Development, Ministry of Road Transport and Highways, Ministry of Environment
and Forests, Department of Expenditure, Chief Secretary of Delhi Government and a
representative from the PMO. The Empowered Committee meets regularly and takes
decisions on matters connected with inter‐departmental coordination and overall
planning, financing and implementation of the Delhi Metro project.
It is suggested that the role of this Empowered Committee is enlarged to include Varanasi
Metro project also and the Chief Secretary, Uttar Pradesh should be inducted as a
member of this Committee.
Implementation Schedule
SPV may initiate action for appointment of General Consultants for project management
including preparation of tender documents – as soon as the DPR is approved by GoUP and
the project is approved for construction. The possible dates of important milestones are
given in Table 13.32.
TABLE 13.32: PROJECT IMPLEMENTATION SCHEDULE
S.N. Tasks Timelines
1 Final DPR February, 2016
2 State Government Approval of DPR April, 2016
3 In Principle Approval by GoI July, 2016
4 Appointment of Interim Consultant September, 2016
5 Appointment of DDC for Civil Works September, 2016
6 Packaging and Invitation of Bids for Priority Section* October, 2016
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S.N. Tasks Timelines
7 Final Approval of GoI January, 2017
8 Commencement of Civil Works on Priority Section February, 2017
9 Completion of Project March, 2023
BHEL to Benia Bagh Section of about 15.0 Km shall be taken up on priority for
construction.
The commercial operation on Phase‐I corridors may start from March 2023 after providing
about 5.5 years for construction and 6 months for safety audit and certification.
13.9.2 Concessions from Government
Metro rail projects need very heavy investment. Loans have invariably to be taken to fund a
part of the capital cost of the projects. These projects yield low financial internal rate of
return though their economic internal rate of return is very high. With reasonable fare levels,
servicing of these loans often pose problems. To make the project financially viable, the fares
need to be substantially increased to socially un‐acceptable levels. This results in the
ridership coming down significantly, as it is sensitive to increases in the fare level. Thus, the
very objective of constructing the metro rail system to provide an affordable mode of mass
travel for public is defeated. It therefore becomes necessary to keep the initial capital cost of
a metro project as low as possible so that the fare level of the metro system can be kept at
reasonable level.
Experience of Delhi Metro project has shown that the taxes and duties (including custom
duty, Excise Duty, Sales Tax, Taxes on electricity, Municipal Taxes) constitute about 15 – 16%
of a metro project cost. VMRC may try to get exemption from these for the implementation
of this important infrastructure project.
Custom Duty on all imported rolling stock and other equipment needed for
the project.
Excise Duty on all indigenously manufactured rolling stock and other
indigenously finished goods required for the project.
Sales Tax on all purchases made for implementation of the project whether
directly by the project implementation authority or by the contractors
executing the project.
Sales Tax on works contracts to be executed for the implementation of the ‐
project.
Tax on electricity required for operation and maintenance of the metro
system.
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Municipal Taxes.
Further, the transfer of Govt. land required for the project could be considered free of cost or
at the most at Govt. rates. The cost of private land could also be recovered through TDRs and
higher FARs.
VMRC may consider roping in more stakeholders, who would directly/ indirectly benefit from
the system, for partly sharing the cost of metro construction.
Additional taxes due to improved accessibility, higher property rates (as a result of metro
availability) may also be considered in the immediate influence area of metro corridor.
13.9.3 Way Forward
On acceptance of the Detailed Project Report by VDA, the following action may be initiated
for implementing the Varanasi Metro:
Approval of State Government (Cabinet Approval) to the Detailed Project Report.
Issue of notification for the project and alignment.
The DPR to be forwarded to the Ministry of Urban Development, Planning Commission
and Finance Ministry with the request for approving the Metro project and for financial
participation through equity contribution to the SPV.
Land acquisition related issues.
Examination and appraisal of DPR by bilateral/multilateral funding agencies for possible
funding.
Stakeholder consultation on environmental and social impact of the project.
Signing of an MOU between Uttar Pradesh State Government and Government of India.
giving all details of the Joint Venture bringing out the financial involvement of each party,
liability for the loans raised, the administrative control in the SPV, policy in regard to fare
structure etc.
Loan approval
Set up the Special Purpose Vehicle (SPV) VMRC (Varanasi Metro Rail Corporation Ltd.) for
implementing the project and for its subsequent Operation and Maintenance.
Appointment of General Consultants (G.C.) for the project.
Providing legal cover for construction as well as O&M stages of the project.
Agreement between the State and Central Government for financing the debt portion of
the project along with the setting up of time frame for completing the project.
Packaging and invitation of bids for various contracts.