Draft Detailed Project Report

Technology Centre Systems Program – Draft DPR for New TC at Rohtak
Table 39: variable cost assumptions
Description Unit Norms
Variable operating cost
Raw material
RM for Finished goods % of FG 20.6%
RM for Training % of Trg 1.0%
Consumable tools - FG % of FG 2.5%
Consumable tools – Trg % of Trg 1.0%
Consumable stores – FG % of FG 2.0%
Consumable stores - Trg % of Trg 0.6%
Utilities
Electricity & water
FG % of FG 6.5%
JW % of JW 6.5%
Training % of Trg 4.9%
Fixed Operating expenditure
Fixed operating expenditure has four key heads. Expenditure under each head has been identified for
the key income streams:
a) Salary and wages/ establishment expenses
The salary expenses include salary for employees of proposed TC at Rohtak. There will be 60
employees on regular contract and ~ 170 will be on temporary contract/honorarium visiting.
b) Repairs and maintenance (R&M)
Cost of repair and maintenance has been calculated for
► Plant and machinery installed
R&M for plant and machinery has been taken as a percentage of the gross block in an
operating year.
► Buildings
R&M for plant and machinery has been taken as a percentage of the gross block in an
operating year,
c) Training expenses
Training expenses primarily comprise of expenses incurred for external faculty visiting to the TC
from time to time as part of Short term and Long term trainings. These expenses typically
include faculty fees, hotel and transportation.
d) Other production and administration expenses
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