Components of Project Cost

Components of Project Cost

1.  Components of Project Cost

1.1.   Land and Site Development

1.2.   Building & Civil Works

1.3.   Plant & Machinery

1.3.1. Basic cost of indeginious machines

1.3.2. Basic cost of imported machines

1.3.3. Custom duty on imported machines

1.3.4. Excise

1.3.5. Sales Tax

1.3.6. Octroi, freight, transportaion, loading/unloading, clearing & forwarding

1.3.7. Erection Charges

1.4.   Miscellaneous Fixed Assets

1.4.1. Utilities(DG Sets, Boiler, Transformer, Office Equipments)

1.4.2. Patents, Licences, Payments inrespect of trade marks

1.5.   Prepoprative Expenses

1.5.1. Promotional Expenses

1.5.2. Organisational & Trainning Cost

1.5.3. Rent, rates & Taxes

1.5.4. Travelling expenses

1.5.5. Communication expenses

1.5.6. Printing & Stationery expenses

1.5.7. Advertisement expenses

1.5.8. Guarantee commission

1.5.9. Insurance during construction

1.5.10. Intrest during construction

1.5.11. Provisioning for contingencies

1.5.11.1. Firm Costs (5% escalation) Low probability of price variation

1.5.11.2. Non-Form Costs (10% escalation) High probability of price variation during the course of proejct execution

1.5.12. Preliminiary expenses

1.5.12.1. Cost of prepartion of feasibility reports/project reports

1.5.12.2. Conducting market survey

1.5.12.3. Legal charges for drafting agreements, memorandum & article of association

1.5.12.4. Capital Issue, underiting commission, brokerage, etc

1.5.13. Technical know how fees

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