Prepared By-

1

Subhendu Datta MBA-CPM (SEM1)

• Feasible Project

• Commercial Complex

• Metro Rail, Nagpur

• Bridge Over Yamuna River

• MLCP in Brindavan Gardens

• Recreational & Community Centre, Raipur

• References

2

3

A feasibility study is a multi-

dimensional set of actions

which aims to analyse and

evaluate a project in order to

determine if its construction is

feasible.

The case in which an alternative option, a strategy plan, a design or a different

location is provide economically preferable

The case in which an alternative option is deemed appropriate in social or

environmental terms and

The case in which probable construction and operation of a project can be

financially viable as well as manageable

4

5

Rapid Population

Growth in Urban

Areas

High Demand for

commercial hubs with

Pleasant Urban

Environment

Increased Income and

Improved Living

Standards

The rate increase of urban population in Nepal is 6% per

annum because of rural urban migration due to high economic

opportunities.

When there is increase in the income of people, their life style

also changes. People want to live in better environment with

the all types facilities.

When economic growth appears then need of pleasant

centers for their offices, shopping malls and other needs

also increases.

Nepal, a mountainous country with a surface area of 147,181

sq.km is bordered in the north by the Chinese Autonomous

Territory of Tibet and in the east, south and west by the India

Butwal is a city having population 300,000 as arising the

centre hub for Western Region which connect Terai to the

different mountainous districts.

Considering the increasing need of commercial center and

business hub, a commercial complex is felt to be

established at butwal in around 6100 square meter land.

6

The Project location is close to the BP Chowk and in

the crossings of Nepalgunj Road, Palpa Road and

Amarpath which is located in the drawing.

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8

The project will be designed considering all the elements required for the commercial center.

The contemporary building materials and techniques such as reinforced concrete, steel, glass, aluminum etc. will

be extensively utilized and major design factors for earthquake consideration shall also be incorporated.

Ecofriendly and bio-diverse elements will be introduced in every conceivable areas for self-sufficiency in the fields

of energy utilization and conservations.

All these elements shall be infused subtly into the various area designs keeping in mind the ultimate aim as to maintain

the existing local architectural ethos in its entire splendor. This shall be carried out by the overall cladding systems and

utility of the traditional materials in the right places.

The exterior landscaping shall be designed to enable the structures in incorporate within an ambiance of the beautiful

surroundings, as they exist. No foreign elements shall be introduced to disturb the scenic beauty of the surroundings.

Total Construction Area( Built Up Area)-406,447.00 S.ft.

Total Rentable Area-257,413.00 S.ft.

Percentage of Area to be Rent Out-63.33 %

Available land Area: 65,610.00 square feet

Transportation facilities, Labour, Materials & Technology is available in this region, Hence project is

Technically feasible.

9

Total Floor Area 406,447 sq. ft

Rate of Construction of building NRS 3,000.00 per square feet

Total cost of construction NRs 1,21,93,41,000.00

Total rentable space (63.33 % of the total area) 257,413.00 square feet

Projected Period for space to be rented 100% 4 years

Period of Construction 2 years

Description Initial rent Total rent after 10 years

Average Monthly Income from Rent 1,48,78,541.67 2,23,17,812.50

Average Monthly Income from Rent 17,85,42,500.00 26,78,13,750.00

Average Monthly Income for total rent out period 1,85,98,177.08

Cost Benefit Analysis:

Construction Cost Analysis

10

Total Initial Investment NRs. 1,21,93,41,000.00

If 100% Loan applied for the project @ 13%per annum for 20 Years, schedule

monthly payment NRs. 1,42,85,000.00

Total Final Investment NRs. 3,42,84,00,000.00

If the project awarded for 30 years excluding construction period, total income NRs. 6,69,53,43,750.00

Cost/ Benefit Ratio including interest 95.29%

Investment / Interest Calculation

• Pricing formulas are determined by the availability of similar construction and rental charge, the level

of demand for the product in the Nepalese market, and total costs required bringing the construction.

• Before selecting a pricing strategy, obtain as much information as possible from local agents, market

research, potential customers, and competitors.

• Pricing structures in Nepal are erratic. No any fixed cost is here for the rental charge, so we have

gathered the information from other similar projects.

• Rental charge for the Down Floors is comparatively higher than the upper floors. We have considered

the average charge of top and bottom floors.

• Commercial Complex may prove as the good investment for the business house and better for the users

also.

• Hence, the project is very much feasible from both technical as well as financial purpose in

Butwal center.

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NEED OF PROJECT:• As cities grow in size, the number of vehicular trips on road system goes up.

• This necessitates policy to discourage private modes and encourage public transport once the level of traffic along

any travel corridor in one direction exceeds 8000 persons per hour.

• Developed countries, planning for mass transit system starts when city population size exceeds 1 million; the system

is in position by the time the city population is 2 to 3 million and once the population exceeds 4 million or so,

planned extensions to the Mass Rapid Transit Systems is vigorously taken up.

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Terminal Name Incoming Passenger Outgoing Passenger Total

Nagpur Main Railway Station 32862 32757 65619

Ajni Railway Station 2263 5850 8113

Itwari Railway Station 5502 9001 14503

Buildi Bus stand 8360 102036 18566

Ganeshpeth Bus stand 32130 32282 64412

Ravi Nagar Bus Stand 9803 8973 18776

Chattrapati Square 3720 7494 11214

Gandhibagh Bus Stand 1755 1368 3123

Indora Bus Stand 3395 2777 6172

More Bhavan Bus Stand 10580 6482 17062

MP Bus Stand 2954 2453 5407

113324 119643 232967

Terminal study:

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ModesPassenger in Percentage

Two Wheeler 9.10%

Auto Rickshaw 24.10%

Car 2.60%

Taxi 1.10%

Mini Bus 0.90%

City Bus 55.30%

Cycle Rickshaw 0.30%

Cycle 0.25

Train 3.60%

Walk 0.30%

Total 100%

Terminal passenger interview• There are 8 main stops in Nagpur city which is use daily by most

of passenger for travel purpose. 240 passengers were interviewed

at 8 main bus stands for knowing their travel characteristic.

Interview of Workers and Workplace

In Nagpur 85% of work places are shopping and hospitality

business

50% employment is concentrated in DHANTOLI, COTTON

MARKET, ZERO MILE, SITABULDI areas which are within

the core area of the city.

Another 30% employment is in MANAKPUR, MAHAL,

LAWCOLLEGE, BHANDARA ROAD, MANEWADA,

FORT, GANESHPETH, SADAR and LAKDAGANJ areas.

There are also a few isolated places such as INDORA,

KHAMLA,ITWARI and KALMANA where work places exist.

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Traffic Compositions

Traffic Volume Count

• To understand traffic characteristic in

terms of vehicular, passenger and PCU,

40 traffic count stations were

identified. These count stations were so

chosen as to cover major inter-zonal

traffic movements within the city

• From this survey we can sort out that

area or that route where the vehicular

traffic cross the road feasibility limit

means 8000PHPDT.

• Road base system is feasible up to

8000 PHPDT, above this limit mass

rapid transit system is to be

provided.

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Alignment (Proposed by DMRC) Detail Route

Alignment-1 North-South Corridor

(21.833 km, 17 stations)

Automotive Square, along Kamptee Road, Wardha Road, Variety Square to Abhyankar

Road, along Nag River alignment will fall on Humpyard Road, Rahate Colony Road,

Wardha Road, Khamla Road, Airport, Mihan Area

Alignment-2 East – West Corridor

(18.266 km, 19 stations)

From Prajapati Nagar, along Central Avenue Road, Railway Feeder Road, Munje

Chowk, Jhansi Rani Chowk, North Ambajhari Road, Hingna Road, Lokmanya Nagar

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PARTICULARS BANGALORE HYDREBAD NAGPUR

Length 33 KM 71.6 KM 38.2 KM

Total Cost (cr) 6395 16000 (APPROX) 8680

Per km Cost (cr) 192 224 227

Phase no. Name of phase Distance (KMs) Estimated cost (cr.)

1 Automotive sq. at Kamptee to Mihan 19.66 4463

2 Wadhaman nagar to Hingna 18.56 4213

3 Katol road to Umer road 20 4540

TOTAL 58.22 13216

Sanctioned metro project

Project Cost Estimate

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The benefit stream that has been evaluated and quantified includes

• Capital and operating cost of carrying the total volume of passenger traffic by existing bus system and private

vehicles in case metro project is not taken up.

• Savings in operating costs of all buses and other vehicles due to de-congestion including those that would

continue to use the existing transport network even after the metro is introduced.

• Savings in time of commuters using the metro over the existing transport modes because of faster speed of metro.

• Savings on account of prevention of accidents and pollution with introduction of metro.

• Savings in fuel consumption on account of less number of vehicles on road and congestion effect with

introduction of metro are included in those of vehicle operating cost.

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The population of Nagpur had already exceeded 35 lakhs and in 2021 it will cross 50 lakhs. We can say that, at the

time of2016 PHPDT of this route will exceed the limit of 8000PHPDT, so mass rapid transit system is necessary.

As per TVC survey the studied phases are feasible and the phase 3 will be after a decade.

The revenue generated within 3 years will be equal to total cost of project when 13% of the population will use

metro rail.

It is the fast mode of transportation with maximum carrying capacity in less time.

So we can conclude that Metro Rail will be feasible in Nagpur by the end of 2016.

Allahabad, about 600 km southeast of Delhi in Uttar Pradesh (UP) State

The city is divided into the four districts of Allahabad, Naini, Jhusi and Phaphamau

The adjacent Naini District across the River Yamuna is the industrial center where communication,

automobile, fertilizer, textile and related industry companies are located.

The only traffic route connecting these two districts was the existing bridge over the River Yamuna

(Yamuna Bridge).

The existing bridge (Yamuna Bridge) is a combined highway-railway bridge constructed at the end

of the 19th century, and its narrow two lanes were straining to cope with the increasing size and

weight of the vehicles

As a result, congestion became chronic, with morning and evening rush hour traffic backed up for 40

minutes to 1 hour

Moreover, the peak-hour traffic volume on the bridge far exceeded the transport capacity of two-lane

bridges of general roads in India.

Therefore, also out of concern over the safety of the decaying bridge, construction of a new substitute

bridge was urgently needed.

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Project period

The project period was scheduled from January 1994 to July 2004 (ten years and seven months),

Five years and four months longer than the planned period from January 1994 to March 2000 (six years

three months) or 169% of the planned period

Project cost

The project cost was 8,807 million yen (ODA loan portion: 7,515 million yen),

3,097 million yen less than the planned 11,904 million yen (ODA loan portion: 10,037 million yen) or

74% of the planned project cost.

In terms of rupee, the actual cost was 3,145 million rupees (1 rupee = 2.80 yen), which is almost equal

to the planned 3,217 million rupees (1 rupee = 3.70 yen).

This difference is a resulted of the difference in the rupee-yen exchange rate at time of planning and ex-

post evaluation.

Loan Amount / Loan Disbursed Amount 10,037 million yen / 7,515 million yen

Exchange of Notes / Loan Agreement December 1993 / January 1994Terms and Conditions-Interest Rate 2.60%-Repayment Period (Grace Period) 30 years (10 years)-Procurement General untiedFinal Disbursement Date Mar-05Main Contractors J/V of Hyundai Engineering Co. Ltd. (Korea) and

Hindustan Construction Co. Ltd. (India)Consultant Services J/V of COWI Consulting Engineers and Planners AS (Denmark) and SPAN

Consultants Pvt. Ltd. (India), DRC Consultants, Inc. (USA)

Feasibility Study (F/S), etc. by UP State Public Works Department in 1990

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Yamuna

Bridge

(old bridge)

Naini Bridge (new bridge)

1990 2006

Actual

(reference)

Estimate Actual Achievement

rate

Passenger

car

5,168 13,130 14,342 109%

Bus 1,436 3,415 1,148 34%

Truck 3,968 20,523 5,275 26%

Total 8,568 37,068 20,765 56%

Comparison between Yamuna and Naini Bridge((unit: vehicles/day))

In addition to the reasons described above,

NHAI analyses that the overestimate of traffic

volume at the time of F/S is the biggest factor of

the less-than-planned traffic volume in 2006.

2002 2004 2006

Number of accidents 10 7 2

According to the data on the number of traffic

accidents on the Naini Bridge (new bridge) and its

approach roads (by NHAI), No. of traffic accidents

is decreasing after Naini bridge .

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• Alleviation of traffic congestion

• Decrease in traffic accidents

• Revitalization of local economy

• High employment creation

• Low impact on Environment

• Social impact of land acquisition and resident relocation

• Reduction in pollution Levels

• Increase in Tourism

• Overall Development of City

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Section kmBefore Project(via Yamuna

Bridge)After Project(via Naini

Bridge)Allahabad–Naini 4.7 32 minutes 5 minutes

2000 2001 2002 2003 2004 2005

No. of registered factories 211 206 318 195 175 177

1993/04 1999/00 2000/01 2003/04

No. of tourists (thousands) 1,048 8,773 10,803 14,927

CO(µg/m3)Noise(dBA, 24hours Vibration(mm/scc)

Min. Max. Min. Max.

2005 722.72 52 65 1595 2398

2006 837.06 48 63 141.23 2316

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Year 2002/03 2003/04 2004/05 2005/06

Toll revenue 3,130 3,594 4,605 7,980

O&M cost 2,005 2,752 2,786 2,448

(million rupees)

Toll booth at Naini Bridge

Hence, the Project is feasible.

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Mysore is the second biggest City in the State of Karnataka. It lies130 kms from the State Headquarters, Bangalore.

The Brindavan Gardens is a garden located in the district of Mandya in Karnataka. It lies adjoining the Krishnarajasagara (KRS) dam which is built across the river Cauvery.

tthe garden is one of the major attractions near the city of Mysore

The garden was renovated in 2005 with a cost of Rs. 5 crore. The renovation included sprucing up the musical fountain using a digitized system and repairs of dysfunctional fountains

Brindavan gardens and the KRS dam receive over a million tourists a year and the number is growing at a steady rate of 5% every year. The vehicular traffic, however, is growing at a much higher rate of 20-25% year on year

Keeping the traffic growth in mind and the requirement for better facilities at the existing parking area, a feasibility study was desired to be carried out for developing a multi-level parking facility for all the vehicles that currently use the parking facility

The number of tourists is increasing at the rate of 25% every year, while the number of vehicular traffic at Brindavan Gardens has been increasing at 5% every year

In 2007, a private company was appointed for collection of parking and entry fee at the BrindavanGardens for a period of one year

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Choice of MLCP

• There are two kinds of MLCP technology available viz. automated and manual.

Comparison- Automated Vs Manual Parking

Sl.No Parameter Automated Manual

1 Cost of setting up, cost per day

High Low

2 Mintenance cost High Low

3 Land Requirement Low High

4 Wait Time Low High* The maintenance cost for an automated system is high as

it will require power backup as well as fire extinguishing

systems in place in case of power cuts or ignition due to

the electrical systems which are constantly running

Cost Comparison- Automated Vs Manual Parking

Sl.No MLCP Cost (Rs. Lakhs/bay)

1. Automated 4.5-5.0*

2. Manual 2.5-3.0

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The parking area at Brindavan Gardens is indicated in the figure below

Site Area – 23,000 sq.mt

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Tourists to Brindavan Gardens

The number of tourists to Brindavan Gardens currently stands at 1.5 million per year.

ParticularsPeak Season-

per dayWeek ends per

dayWeek days

No of visitors 12000 4000 2000

The peak season is the month of October which is also the month in which Dasara festival is celebrated. Incidentally,

most of the tourist to Mysore also occurs in the month of October where visitors travel to witness the Dasara festival

celebrations

Parking at Brindavan Gardens

ParticularsPeak Season-per

dayWeek ends per

dayWeek days

No of vehicles 2400 800 + 800 400

The above figures of the number of vehicles are inclusive of all kinds of vehicles such as buses, cars, two-wheelers etc.

The break-up of the vehicles using the parking area will need to be sourced from the respective authority or company

handling the parking area

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Parking Facilities at Brindavan Gardens

There is approximately 50,000 sq.m area available which is divided into many smaller sections as shown below. It is

located in the beginning of approach road with an easy access.

Particulars Dimension (sq m) Capacity

Car park 23000 700

Bus parking on road 4000 80

Bus parking area 8000 150

Mini bus 2000 100

Bikes 2000 500

Autos 4000 250

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Present Parking Facility at Brindavan garden

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The only means of reaching the site

is by road.

The site is well connected by an

approach road.

The approach road is 3.1 km long

from MNPM circle (“Mandya

National Paper Mill”) up to the

gardens is being developed.

It is an intermediate lane with a 5.5

m carriage width until Haralikatte,

from then on till the gardens it is a

7.5 m carriage width intermediate

road.

This road is the only means to reach

the other side of Brindavan Gardens

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Proposed Design Capacity

Particulars Design Capacity (in numbers)

4-wheelers 1500

Buses 185

Mini bus 285

Project Cost

Sl. No. Cost Heads Units Cost (in Rs. Crores)1 MLCP Structure

a. Basement, Ground Floor + 5 Floors 748,765 sq.ft 71.4

2 Pre-operative Expenses

a. Site surveys, PMC, etc. 6% 4

3 Contingency Costs 5% 3.64 Financing Charges 1% 0.75 IDC 8.2

Estimated Total Project Cost 83.9

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Current Parking fees

Particulars Parking Fee

Auto rickshaw and two-wheelers 5

Four-wheelers 10Mini Buses 20Buses 25

Parking Charges

Upto 2 hrs- Rs. 202-4 hrs- Rs. 404-6 hrs- Rs. 60>6 hrs- Rs. 80

One time fee -

Rs. 20 for four wheelers

Rs.30 for mini buses

Rs. 50 for bus

Proposed Parking fees

40

Sources of Finance

Parameter Value

Debt : Equity ratio 70:30

Cost of Debt 14%

Debt Repayment Period 6 years

Cost of Equity 20%

Depreciation Assumptions

Fixed Assets (Buildings) 3.33%

Furniture, Fixtures, others 6.67%

Others- Equipments 10.00%

Fixed Assets (Buildings) 10%

Furniture, Fixtures, others 10%

Others- Equipments 15%

Other Assumptions

S.No Item Value

1. Concession Period 30 years

2. Construction Period 12 months

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Project Revenues

Concession Year 2 6 11 21 30

Openning Year 1st 5th 10th 20th 29th

Parking

1.Peak season 0.43 0.61 0.98 2.65 6.01

2.Off Season 0.51 0.88 1.65 6 17.25

Total 0.9 1.5 3 8.5 23.3

Advertising 0.1 0.1 0.1 0.2 0.4

Total Income (Rs. In

Lakhs) 1 1.6 3.1 8.7 23.7

Operating Costs

Expenses Basis

Insurance 1% of Construction Cost

Maintenance of equipment 3% of operating revenues

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Indicator Brindavan Gardens

Number of PCUs 3950

Full CapacityOnly during peak season- October,

November and December

Project IRR – 30 years 15%

Project NPV@ 13% 21 Crore

Final Details of Project

Hence, the Project is feasible.

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Chhattisgarh Housing Board known as CHB, has comes under existence under Chhattisgarh Housing

Board Act.

Its main object to attained general improvement of the city, construction of houses for removing slums

and improvement of general sanitary condition to safeguard public health.

Chhattisgarh Housing Board was formed with many objectives which emphasis on development of land.

The main object of the housing board is to provided housing accommodation to the needy citizens at an

affordable price.

In Shankar Nagar colony area and surrounding residential and commercial area where project is proposed,

there are presently no Club, Convention & Recreation centre facilities.

Raipur along with neighboring cities of Durg and Bhilai is hub of steel, aluminum and power plants.

Largest steel market in India.

• Raipur is the centre of trade and

large scale industrial activities

for the state of Chhattisgarh.

• Raipur along with neighboring

cities of Durg and Bhilai is hub

of steel, aluminum and power

plants.

46

Location: It is situated centre of Shankar Nagar a big residential township and near to many residential

township and commercial area hence it govern ample locational advantages.

Road: The proposed site has been connected to Shankar Nagar main road is sufficient to ensure heavy

traffic and connectivity with the other part of city hence proposed project will attract large number of

travelers and users for lodging, restaurant and recreational purposes.

Railway: The main railway station is about 6-7 kms from the site hence it will only help to boost traffic

for convention guest who opt to reach this place.

Utility Lines: All utility lines (Electricity, telephone, Cable, Water supply, sewerage drainage etc.) are

available at the site. The road drainage system of the area is also in the planned manner.

Water Supply norms: The water requirement proposes to have 100 liters per bed per day. For hotel use

which will be meet out from the own sources like tube well.

Telecommunication: The site area equipped with Fiber optic cables and will have full access of

communications.

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Chhattisgarh is the tenth largest state in India.

Population of Raipur in 2011 is 1,010,087.

The population of the region (50 km radius from Raipur) is about 22 Laks people according to 2011 census.

Sex ratio of Raipur city is 945 per 1000 males.

35% population increase in every decade.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2001 2011 2021

YEAR

POPULATION

49

SECTION A INDUSTRIALISTS AND BUSSINESS, HIGH CLASSSHOP OWNERS

SECTION B WELL EDUCATED,SUPERVISORY LEVEL IN INDUSTRY, SHOP OWNERS

SECTION C EDUCATED TILL 10th & 12th

GRADE

SECTION D& E UNSKILLED WORKER

A15%

B22%

C23%

D20%

E20%

POPULATION DISTRIBUTION

50

Period of financial analysis is taken as 30 years, including period of construction.

The rate of interest for the analysis has been assumed as 15% per annum.

IRR

PROJECT IRR (PRE-TAX) 22.70%

POST TAX EQUITY IRR OF THE PROJECT 22.73%

NPV

NPV OF EQUITY CASH FLOWS (RS LAKH)

@222.73% DISCOUNT RATE

1.13

Since, NPV > 1,

Project is feasible

Banquet: This facility will focus not only on conventions and the domestic corporate market for their

meeting and conference needs but will also cater to the multi-purpose local demands for weddings,

festivals and other celebrations.

Hotel: Based on demand projections and the market study of the Raipur Hotel and lodging sector, it is

recommends that a full service hotel with at least 20 rooms be developed.

Recreation: The proposed project is located in the center of residential area hence recreation activity

specially Gym, Spa, Table Tennis, Long Tanis, Badminton and Swimming Pool etc will be most

suitable. This place is surrounding by many residential areas hence it will be attractive place for

recreational activity.

CONCLUSION

On the basis of the findings of the feasibility study which includes the financial analysis of the

project’s estimated construction it is recommended that the project is feasible. The demand

analysis of the end users of the sport, convention & recreation centre also validates the claims

of viability of the project.

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PROJECTS/

FEASIBILITY

COMMERCIAL

COMPLEX

NAGPUR METRO

RAIL

BRIDGE OVER

YAMUNAMLCP

SPORTS &

RECREATIONAL

CENTER

LOCATION BUTWAL, NEPALNAGPUR CITY,

MAHARASHTRAALLAHABAD, U.P.

BRINDAVAN

GARDEN, MYSORE

RAIPUR,

CHATTISGARH

SITE SELECTIONNEAR MARKET, CITY

CENTERSuggested by DMRC Allahabad to Naini On Existing Parking lot Shankar nagar Colony

TRAFFIC STUDIES/

DEMOGRAPHIC

STUDIES

N.A. Traffic Survey PCUTourist & Traffic

SurveyDemographic

FINANCIAL

FEASIBILITYB/C RATIO = 1.05

PAYBACK PERIOD=

3 Years B/C RATIO = 1.93

IRR= 15%

NPV= 21

IRR= 22.7%

NPV = 1.13

SOCIAL BENEFIT-

COSTHIGH HIGH HIGH LOW MEDIUM

ESTIMATED PROJ.

COSTRs. 141 Crores Rs. 13,216 Crores Rs. 321 Crores Rs. 83.9 Crores Rs. 80 Crores

CONCLUSION FeasibleFeasible Feasible Feasible Feasible

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1. Pre - Feasibility Study For Multi - Level Parking Facility At Brindavan Gardens , Infrastructure Development

Corporation (Karnataka) Limited

2. Detail Feasibility Study Report For The Establishment Of Commercial Complex Of Lumbini Zonal Hospital At

Pushpalal Park, Butwal (Engineers For Technical Consultation (Pvt.) Ltd. Anamnagar, Kathmandu)

3. Construction Of A Bridge Over River Yamuna At Allahabad/Naini

4. Feasibility Study Of Metro Rail Project In Nagpur City (Akshay.M.Ramteke, Prof. Vishal Gajghate)

5. Feasibility studies of Club with Sports, Recreation & Community Center- By Chattisgarh Housing Board.

55