-DPR: Detailed Project reports

--NIT cost estimate

--SOR: Schedule of Rates

COST ENGINEERING, CC 1
DETAILED PROJECT
REPORT -
PREPARATION
DETAILED PROJECT REPORT

 TYPES OF SCHEMES
– GENERATION LINKED SCHEMES
– SYSTEM / GRID STRENGTHENING SCHEMES
 STRENGTHENING OF T/L
 AUGMENTATION OF S/S
 INTER REGIONAL LINKS
 HVDC B/B
STEPS OF PREPARATION OF DPR
I. SCHEME IS CONSIDERED AT CEA/ REB FORUM.
STATES CAN ALSO INDIVIDUALLY REQUEST POWERGRID

I. IN PRINCIPLE CLEARANCE FOR PAYMENT OF TARIFF DONE BY

BENEFICIARIES AT REB FORUM

II. CTU DEPTT. REQUESTS T/L & S/S DEPTTS. FOR BOQ

III. T/L DEPTT. REQUESTS SITE TO GIVE BOQ ON BASIS OF PRELIMINARY /

WALKOVER / MODERN SURVEY.

IV. S/S DEPTT. CONSULTS SITE IN CASE OF NEW S/S OR IN CASE THE
SPACE IS LESS IN EXISTING S/S

V. BOQ PREPARED BY T/L AND S/S DEPTT. ARE GIVEN TO COST ENGG.
DEPTT

VI. DETAILED PROJECT REPORT (DPR) PREPARED BY COST ENGG. DEPTT.

WITH FOLLOWING FEAUTURES:
 WRITE-UP OF THE PROJECT.
 DETAILES OF ENV. & FOREST
 MARKETING PHILOSOSPHY
 COMMISSIONING SCHEDULE
 FINANCIAL STRUCTURE
 STEPS OF PREPARATION OF
DPR (CONTD.)

 DPR THUS PREPARED IS MOVED FOR

INTERNAL APPROVAL.
 IT IS PUT UP TO COMMITTEE ON
INVESTMENT ON PROJECTS (CoIP) FOR
APPROVAL .
 AFTER APPROVAL OF CoIP, THE
PROJECT IS PUT UP TO BOARD OF
DIRECTORS FOR APPROVAL.
 PROJECT INVESTMENT APPROVAL PROCESS

Trans System identified in

Standing Committee Meeting

IOM (Inter Office Memo) to all concerned

for preparation of DPR as per approved
scheme
Input from TL, SS,CTU, LD&C,
Site etc to Cost Engg.
DPR prepared and initiated by Cost Engg.
For Management

DPR routed through Finance, ESMD, CMG,

Commercial & CP Deptt. & Directors.

DPR approved by CMD

PROJECT INVESTMENT APPROVAL PROCESS
(Cont.)

DPR approved by
CMD
DPR appraised by External
Financial Institution if
project cost > Rs. 1000
crores
DPR approved by
Committee on Investment
of Projects (COIP)

Investment
Approval of DPR by
Board of Directors
 CONTENT OF DETAILED PROJECT REPORT

 INTRODUCTION
 BACKGROUND
 JUSTIFICATION
 TECHNICAL FEATURES OF T/L, LD&C & S/S
 PROJECT IMPLEMENTATION
 MARKETING PHILOSOPHY
 COST ESTIMATE
 BASIS OF COST ESTIMATE
 CENTAGES & IDC
 FINANCIAL STRUCTURE
 MONTHLY FIXED CHARGES
 COMPLETION COST
 ENV. & FOREST ASPECTS
 Preliminary survey & soil investigation for TL- Rs.25,000/- per Route
Kms.
 R&R Compensation –Rs.200 lakhs to Rs. 250 lakhs for
765/400/220kV New S/Stn.
 Cost of Land for substation- Rs.10 to Rs.15 lakhs per acres ( area for
new s/stn- 72 acres)
 Crop compensation- Rs.5,00,000/ per Route Km.
 PTCC compensation – Rs.50,000/ per Route Km.
 NPV for forest area diverted- Rs.10.43 lakhs/Hectares
 Cost of compensatory afforestation on twice the area of degraded
forest land- Rs. 1,40,000/hectares.
 IEDC:
 For project cost > Rs.500 crores- 5% of total cost of other component of
project excluding compensation towards Forest.
 For project cost <Rs.500 crores- 10.75% of total cost of other component
of project excluding compensation towards Forest
 RoW Compensation
(in addition to normal tree and crop compensation)

 Compensation @85% of land value as

determined by District Magistrate or any
other authority based on Circle rate/Stamp
Act rates for tower base area (Between
four legs) impacted severely due to
installation of tower structure.
 RoW Compensation (contd..)
(in addition to normal tree and crop compensation)

 Compensation towards diminution of land

value in the width of Right of Way (RoW)
corridor due to laying of transmission line,
subject to a maximum of 15% of land
value as determined based on Circle
rate/Stamp Act rates.
 RoW width for different voltage line *

Transmission Voltage Width of RoW (in M)

132 kV 27

220 kV 35

400 kV D/C 46

765 kV S/C (with delta configuration) 64

765 kV D/C 67

+/- 800kV HVDC 69

1200kV 89

* Width of RoW is as per MoEF guidelines dt. 05.05.2014

 Compensation Rate *

Land type Rs. Lakhs/ acre

Mostly agriculture land in rural setting 15

Mostly Urban/Semi-Urban land near 25

Cities/Towns

Mostly Urban land near Big Cities/ 50

Metro Towns

* For estimation purpose

765 DC LINE RoW Compensation Amount

Rs. 42 Lakh/Km in Rural area

Rs. 69 Lakh/Km in Semi-urban area

Rs. 139 Lakh/Km in Urban area

400 DC LINE
Rs. 27 Lakh/Km in Rural area

Rs. 46 Lakh/Km in Semi-urban area

Rs. 92 Lakh/Km in Urban area

DETAILS OF CIVIL WORKS AT NEW GIS SUB-STATION
DESCRIPTION AMOUNT (Rs in Lakhs)
PRELIMINARY WORKS

SURVEY & SOIL INVESTIGATION (LS) 10.00

INFRASTRUCTURE FOR SUBSTATION
LEVELLING/SITE SURFACING (LS) 350.00
BOUNDARY WALL & FENCING (LS) 200.00
APPROACH ROADS, INTERNAL ROADS (LS) 250.00
WATER SUPPLY (LS) 30.00
POWER SUPPLY (LS) 70.00
RAIN WATER HARVESTING (LS) 10.00
TOTAL INFRASTRUCTURE 910.00
NON-RESIDENTIAL BUILDINGS
CONTROL ROOM BUILDING (500 SQ.M @ Rs.25695 128.48
PER SQ.M/Latest SOR rate)
FIRE FIGHTING PUMP HOUSE (LS) 35.00
TOTAL NON RESIDENTIAL BUILDINGS 163.48
DETAILS OF RESIDENTIAL COLONY AT 765/400 NEW SUB-STATION
DESCRIPTION NOS AREA AMOUNT
(SQ.M) (Rs. Lakhs)
RESIDENTIAL QUARTERS
a) TYPE “B1” @ Rs.18000/Sq.m 11 60 119.00
b) TYPE “B2” @ Rs.18000/Sq.m 8 70 101.00
c) TYPE “B3” @ Rs.18000/Sq.m 6 80 86.00
d) TYPE “C” @ Rs.20000/Sq.m 1 100 20.00
e) TYPE “D” with servant quarters & garage @ 1 176 35.00
Rs.20000/Sq.m
COMMUNITY CENTRE @ Rs.18000/ Sq.m 1 300 54.00
TRANSIT CAMP & GUEST HOUSE @ 1 600 122.00
Rs.20000/ Sq.m
INFRASTRUCTURE @31% 166.00
(Roads@5%, Fencing & boundary wall@4%, Lane,
Plantation , Garden @2%, water supply@6%, Internal
Sanitation@6%,Internal Electrification@8%)

TOTAL 701.00
 TRANSMISSION LINES
DESCRIPTION TOTAL (RS. IN LAKHS)
TOWER STEEL
CONDUCTOR
EARTHWIRE
INSULATOR
HARDWARE FITTINGS
CONDUCTOR & E’WIRE
ACCESSORIES
SUB-TOTAL – SUPPLY COST
FREIGHT, INSURANCE & TAXES
ERECTION
STRINGING
CIVIL WORKS
SUB-TOTAL
EQUIPMENT COST PER KM
RIVER CROSSINGS
TOTAL EQUIPMENT COST
EQUIPMENT COST PER KM
 SUB-STATIONS
DESCRIPTION TOTAL (RS. IN LAKHS)
AUTO TRANSFORMER
SHUNT REACTOR
400/220 KV EQUIPMENT
A) CIRCUIT BREAKER
B) ISOLATOR
C) CURRENT TRANSFORMER
D) CAPACITIVE VOLTAGE TRANSFORMER
E) LIGHTNING ARRESTOR
SUB-TOTAL
66/33 KV EQUIPMENT
C& R PANELS
PLCC EQUIPMENT
SWITCHYARD ERECTION (CIVIL WORKS, ERECTION,
BUS BAR MATERIALS, EQUP STRUCTURES)
SUB-TOTAL
SUBSTATION AUXILIARIES
TOTAL EQUIPMENT COST
 SPARES ALLOWED AS PER CERC NORMS

DESCRIPTION % of Plant & Machinery cost

Transmission Lines 1.00%

Transmission substation (Green Field) 4.00%

Transmission substation (Brown Field) 6.00%

Gas Insulated Substation (GIS) 5.00%

Communication system 3.50%

 ABSTRACT OF COST ESTIMATE
A. PRELIMINARY SURVEY & SOIL INVESTIGATION
B. LAND ACQUISTION FOR S/STN AND R&R COMPENSATION
C. COST OF COMPENSTATION FOR T/L
i. Compensation towards Crop/ Tree, PTCC & land
ii. Compensation towards Forest
D. CIVIL WORKS
i. INFRASTRUCTURE
ii. BUILDING
iii. COLONY
E. EQUIPMENT COST
i. TRANS. LINES
ii. SUBSTATION
F. SUB-TOTAL A TO E
G. SPECIAL TOOLS & PLANT
H. INCIDENTIAL EXPENSES DURING CONSTRUCTION (5% of (F-
C(ii) for project >500 cr and 10.75% for project <500 )
I. CONTINGENCIES [3% of F-C(ii)]
SUB-TOTAL (A TO I)=
J. IDC
GRAND TOTAL =
NIT COST ESTIMATES
Costing Methods

First Principle
Budgetary Quotations
Schedule of Rates
(based on competitive bidding)
Costing Methods ….contd.

First Principle Method

Drawbacks:

- Factors vary from product to product & firm to firm

- Generally used for mass product mfg. items

 Costing Methods ….contd.
Budgetary Quotations (BQ)
- No real prices disclosed for fear of losing
competition
- No incentive/motivation for giving accurate
price data.
- No commitment to execute work at
indicative prices
- No seriousness on part of the firms in
absence of competition.
- All the terms & conditions and complete
spcn. details are not known.
 Preparation of cost estimates

Schedule of Rates (SOR) for major components of Lines and

Sub-stations, LD & C i.e, Towers, Conductors, Insulators,
Transformers, Reactors, Substations and LD&C is prepared
quartely
(ending Mar, June, September and December)
as per the process described in next slides.

Such SOR forms the basis for preparation of DPR/NIT cost

estimate for relevant BOQ of each package.

COST ENGINEERING, CC 25
 Preparation of SOR- Empowered Committee

GM level empowered committee

is constituted by CMD to take
decision regarding :-
-Basis of SOR and
-which Bids/LOAs to be
considered in preparation of SOR.

COST ENGINEERING, CC 26
 Preparation of SOR

In order to capture the latest market trend, recently opened

bid prices of latest three bids are considered in preparation of
Schedule of Rates (SOR) .

These unit rates of a particular package obtained against open

competitive bidding (recently opened) represent best possible
market rates and hence are used for the purpose of working
out cost estimate.

COST ENGINEERING, CC 27
 Preparation of SOR

These unit rates are subsequently updated from respective

base dates till the availability of latest SOR level using
applicable PV formula and published indices for the material
involved and labour to take care of variation in input cost
during the intervening period.

[ Here the base date means the date 30 days prior to the Bid
Opening Date (OBD) of respective package as defined in the
Bidding Documents ].

COST ENGINEERING, CC 28
Preparation of cost estimates- DATA BANK OF INDICES

CACMAI
JPC

Office of the Economic

Labour Bureau Adviser
to the
Government of India Government of India
Ministry of Commerce and Industry

COST ENGINEERING, CC 29
 Preparation of cost estimates- Price Updation : Transformer

P1= Po X [0.15+0.22xA1/A0+0.30xB1/B0+0.15xC1/Co+0.06XD1/D0+0.12XL1/L0]
Where,
P1 = Updated Price of Transformer
P0 = Value of Transformer in LOA.
A = LME settlement price of Copper wire bars in ` per MT as published by IEEMA
B = CRGO Electrical Steel Sheets, C&F price converted into ` per MT for transformer
of rating above 10MVA
C = Whole sale price Index number for Iron & Steel (Base-2004-05=100) as
published by IEEMA
D = Price of insulating materials in ` /Kg of average of pre-compressed pressboard
of size 10mm thick, 3200 mm x4100 mm, C&F price converted into INR as
published by IEEMA
L = All India Consumer price index for Industrial workers as published by Labour
Bureau, Simla, GOI

Subscript 1 will correspond to the Latest Price Level.

Subscript 0 will corresponding base indices 30 days prior to date of bid opening.

COST ENGINEERING, CC 30
 Preparation of cost estimates- Price Updation : Concreting

Con1= ConoX[0.20+0.2 (A1)/A0+0.10 (L1)/L0+0.3(B1)/Bo+0.20(C1)/C0]

Where,
Con1 = Updated concreting price.
Con0 = Value of concreting in LOA
A = Rate for wholesale price in India for HSD oil as published by
Reserve bank of India
L = All India average Consumer Price Index for industrial workers.
B = Index numbers of wholesale price in India for cement as
published by Reserve bank of India Bulletin.
C = Index number of wholesale price in India for non-metallic
mineral products as published by Reserve bank of India Bulletin.

Subscript 1 will correspond to latest price level.

Subscript 0 will corresponding base indices 30 days prior to date of bid
opening.

COST ENGINEERING, CC 31
Preparation of cost estimates- Price Updation : Reinforcement Steel

Rst1= RstoX[0.20+0.1 (A1)/A0+0.05 (L1)/L0+0.65(B1)/Bo]

Where,
Rst1 = Updated price of Reinforcement Steel
Rst0 = Value of reinforcement steel in LOA
A = Rate for wholesale price in India for HSD oil as published by
Reserve bank of India
L = All India average Consumer Price Index for industrial workers.
B = Index numbers of wholesale price in India for iron & steel as
published by Reserve bank of India Bulletin.

Subscript 1 will correspond to Latest Price Level

Subscript 0 will corresponding base indices 30 days prior to date of bid
opening.

COST ENGINEERING, CC 32
Preparation of cost estimates- Price Updation : Civil Works of Sub-
station for items other than concreting and reinforcement steel

ERE1= EREo[0.20+0.22 (A1)/A0+0.58 (L1)/L0]

Where,
ERE1= Updated Price of Civil Works.
ERE0= Value of civil works in LOA.
A = Rate for wholesale price in India for HSD oil as
published by Reserve bank of India
L = All India average Consumer Price Index for industrial
workers.

Subscript 1 will correspond to latest price level.

Subscript 0 will corresponding base indices 30 days prior to
date of bid opening.

COST ENGINEERING, CC 33
Salient features of the Transmission Line

• Route length of Transmission line

 Terrains
 Wind Zones
 Forest area
 Line crossings
 Railways
 Roads
 Power lines
 Rivers

• Towers:
 Number of towers
 Type of towers
 Weight of Towers and Bolts & nuts
PHILOSOPHY OF PACKAGING & PACKAGE LIST

• A project is divided into an optimum

number of well-defined manageable
units called Contract Packages.(In
ERP we will be calling this as RTN)

• This ensures goods and services

(i) at a competitive price
(ii) within a given time schedule
 TRANSMISSION LINE PACKAGES

COST ENGINEERING, CC 36
 TRANSMISSION LINE TOWER PACKAGES

COST ENGINEERING, CC 37
 SUBSTATION PACKAGES

COST ENGINEERING, CC 38
 Preparation of cost estimates

As per the approved package list for a project,

package wise Bill of Quantities (BOQ) is provided by
the concerned engineering group to Cost
Engineering Deptt. for preparation of package wise
cost estimate before inviting bids.

The Cost Estimate is then prepared based on

aforesaid contract package wise BOQ and
considering the unit rates from latest applicable
SOR.

COST ENGINEERING, CC 39
 Preparation of cost estimates

COST ENGINEERING, CC 40
 Preparation of cost estimates- Freight & Insurance Charges

Based on the terrain conditions (hilly/snowbound) /

prevailing local law & order problems etc, additional
percentage of F&I is however also considered on case to case
basis/where ever applicable/ necessary.

COST ENGINEERING, CC 41
Preparation of cost estimates- Indices

COST ENGINEERING, CC 42
COST ENGINEERING, CC 43
COST ENGINEERING, CC 44
COST ENGINEERING, CC 45
COST ENGINEERING, CC 46
COST ENGINEERING, CC 47
COST ENGINEERING, CC 48
COST ENGINEERING, CC 49
COST ENGINEERING, CC 50
COST ENGINEERING, CC 51
 INDICATIVE COSTS ( PRICE LEVEL MAR’2018)
TRANSMISSION LINES
SL.NO LINE TYPE COST (RS. TERRAIN
LAKH/KM)
1. ± 500KV HVDC 136.00 MIXED
2. 765 KV D/C 400.00 PLAIN
3. 400KV D/C 129.00 PLAIN
4. 400KV D/C QUAD. 220.00 PLAIN
5. 400KV S/C 74.00 PLAIN
6. 220 KV D/C 54.00 PLAIN
7. 220 KV S/C 41.00 PLAIN
8. 132 KV D/C 37.00 PLAIN
9. 132 KV S/C 22.00 PLAIN
FOR HILLY AREA, ADD 75% EXTRA
 INDICATIVE COSTS ( PRICE LEVEL MAR’2018)
SUB-STATIONS
SL. ITEM DESCRIPTION COST

NO. (RS.LAKH)

1. 765KV Bay (per bay) 1730.00

2. 400 KV Bay with 3 breakers (for two bays) 1560.00

3. 220 KV Bay (per bay) 350.00

4. 132 KV Bay (per bay) 290.00

5. 500 MVA 1 Phase 765/400 KV Transformer 1240.00

6. 500 MVA 3 Phase 400/220 KV Transformer 1590.00

7. Bus Reactor (80 MVAR), 765 KV (1-phase) 544.00

8 Bus Reactor (80 MVAR), 400 KV (3-phase) 601.00

 PERCENTAGE BREAKUP OF TL COMPONENT
SL. ITEM DESCRIPTION 765KV 765KV SC- 400KV 400KV 400KV 400KV 220KV
NO DC-HEX QUAD DC - DC-TWIN DC- SC-TWIN DC
QUAD TRIPLE

1 TOWER PARTS 36% 35% 25% 32% 32% 29% 29%

2 CONDUCTOR 28% 31% 39% 31% 31% 37% 28%

3 EARTHWIRE 0% 1% 1% 1% 1% 1% 0%

4 INSULATORS 5% 6% 6% 5% 5% 4% 4%

5 HARDWARE FITTINGS 4% 4% 5% 3% 4% 3% 2%

6 CON & EARTH ACCES. 1% 1% 2% 2% 2% 2% 1%

10 F&I ,CST,ENTRY TAX 5% 6% 8% 7% 6% 4% 9%

7 TOWER ERE 3% 3% 2% 3% 3% 3% 3%

9 STR 2% 2% 2% 2% 1% 2% 5%

8 CIVIL WORKS 15% 12% 12% 16% 15% 15% 19%

TOTAL 100% 100% 100% 100% 100% 100% 100%

PREPARATION OF NIT COST ESTIMATE IN SAP
STEP- 1
T.CODE : ZCJNITC FOLLOWING INPUT REQUIRED :
 PREPARATION OF NIT COST ESTIMATE IN SAP
STEP- 2
T.CODE : ZPS_NITABS_SS FOLLOWING INPUT REQUIRED :
Thank You
Thank You
TERRAIN CATEGORY

TERRAIN

PLAIN HILLY
NER, HILLY &
SNOWBOUND
J&K

COST ENGINEERING, CC 65
 TRANSFORMER PACKAGES

COST ENGINEERING, CC 66
 REACTOR PACKAGES

• 80MVAR, 765KV
• 125MVAR,400KV
SHUNT • 80MVAR,400KV
REACTOR • 63MVAR,400KV
• 50MVAR,400KV

• 80MVAR, 765KV
• 125MVAR,400KV
BUS • 80MVAR,400KV
REACTOR • 63MVAR,400KV
• 50MVAR,400KV

COST ENGINEERING, CC 67
 FINANCIAL INSTITUTIONS

CRISIL IFCI
CREDIT RATING INDUSTRIAL FINANCE
INFORMATION
SERVICES OF INDIA ICRA LTD CORPORATION OF
INDIA
LIMITED INVESTMENT
INFORMATION AND
CREDIT RATING
AGENCY LTD

A.F.FURGUSON &
CO.
SBI CAP A MEMBER FIRM OF IDBI CAPITAL
PwC NETWORK
SBI CAPITAL MARKETS IDBI CAPITAL MARKET
LIMITED SERVICES LIMITED

COST ENGINEERING, CC 68
 SCENARIO OF MAJOR CIVIL ITEM RATES

M25 DESIGN
PCC (1:2:4) -
MIX- REINFORCEMENT STRUCTURAL
`.3,922/Cu.m
`.6,842/Cu.m STEEL STEEL-
`.72,487/MT `.80,492/MT

CONCRETING
STEEL

PCC (1:4:8) - PCC (1:5:10) -

`.4,060/Cu.m `.2,911/Cu.m STEEL GATE - CHAIN LINK
`.187,622/ EACH FENCING -
`.3,031/RM

RAIN WATER CONCRETE BITUMEN

HARVESTING SPECTIC TANK ROADS- ` ROADS -
- `.2,69,606 1,073/Sq.m `.2,199/Sq.m
`.4,83,079

MISCELLANEOUS ROADS

DISMANTLING OF
ANTIWEED PRE CAST TILES - EXISTING ROADS
SOIL TREATMENT- `.639/Sq.m - `.799/RM (3.75M
INVESTIGATION- `. 22/Sq.m +STONE WIDE)
`.7,99,220 SPREADING-`.
144/Sq.m

COST ENGINEERING, CC 69
 Review of cost estimates

After opening of Bids, as per intimation from CS Deptt.,

review of NIT Cost estimate for the package is carried out on
account of
(i) variation in Bill of Quantity (BOQ) if any,
considered for working out cost estimate with
respect to that considered for inviting bids and

(ii) variation in price level of estimate with respect

to price level of bids based on actual date of bid
opening. Such reviewed NIT cost estimate,
after vetting by Finance Deptt., and approval of
ED of Cost Engg Deptt is forwarded to CS deptt.
for further application for the purpose of bid
comparison.
COST ENGINEERING, CC 70