Group
Sayantan Dasgupta -
1401046
Section - A
Subburam S 1401047
Sumit Singh 1401048
Suresh Bhasin 1401049
Ramesh TVS 1401050
Varun Gampa 1401051
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the project and for tariff calculation. These costs were provided by
engineering consultant, who provides erection & commissioning details and
based on that budget required for the total construction period is obtained,
which may not be exact but certainly based on pragmatic assumptions.
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A6: Yes, there is a process of mid-term review. The review is done in the
month of October, generally. The review is conducted by Management, which
tries to find out the variances from the actual budget.
All the departments usually dont spend the budget they provide.
Management tries, to find out the reason for the same, but in the current
financial year there have been unprecedented circumstances for which
managers cant be held responsible. So Management has to let it go because
clearance from ministries is not eve under their control.
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done only after clearance from the ministries, so could not be spend in the
given period.
Price per unit of activities like drilling & drifting do not change rapidly, hence
the variance analysis done is based on the quantity, which is material
quantity variance, where quantity are measured, how much quantity of
activities are being done.
Q10: What we learned?
A10: We learned that even in big companies like M/S Jindal Steel & Power
Limited, performance appraisal is not linked directly to the budgetary
parameters. Managers provide a significant large amount of activities to be
done in the financial year but they merely utilize 3% of the funds allocated to
the activities.
The main problem is with the finance department, because they have to
arrange finances/ funds for the activities to be executed, with a lot of
hardships, but for some reason managers are unable to execute the intended
activities.
Besides, currently company is not investing much in the hydro business
because of lack of funds, reason being cola block de-allocation & payment of
hefty charges to the government for the coal block mining. So, there can be
external factors which may hamper the funds or other parameters, which
effects your overall progress of the project.
Managers need to provide the budget after critical and logical discussions,
because as in the aforesaid firm, budget fixation might have been logical but
it was certainly was not pragmatic.
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Annex I
Budget Provision for Etalin HEP (3097 MW) in Arunachal Pradesh
14
(Rs. In Lacs)
WBS
element
Name
Budget
kept for
FY 13-14
Budget
for 9
months
FY 201314
(April Dec)
Expen
ses
incurre
d for
April'1
3Nov'13
345.02
258.77
104.18
60%
357.03
267.77
13.44
95%
36.00
27.00
3.64
87%
230.00
172.50
100%
120.00
90.00
100%
100%
60.00
45.00
Lev
el
A
A
A
A
A
A
A - PRELIMINARY
EHP-30001PRE-AB-01
Drilling
EHP-30001PRE-AB-02
Drifting
EHP-30001Explosives &
PRE-AB-03
Detonators
EHP-30001PRE-AB-04
Insitu- Tests
EHP-30001PRE-AB-05
Lab. Tests
EHP-30001Misc. (Any other
PRE-AB-07
investigations
suggested by
FY 2013-
Mate
rial
Quant
ity
Varia
nce
5 | Page
concerned authorities)
A
A
A
A
EHP-30001PRE-AC
EHP-30001PRE-AD
EHP-30001PRE-AE
EHP-30001PRE-AF
EHP-30001PRE-AG
EHP-30001PRE-AI
EHP-30001PRE-AJ
EHP-30001PRE-AK
EHP-30001PRE-AL
EHP-30001PRE-AM-01
EHP-30001PRE-AM-02
EHP-30001PRE-AM-03
EHP-30001PRE-AM-04
A
A
A
A
A
A
A
A
A
A
EHP-30001PRE-AM-07
EHP-30001PRE-AM-08
EHP-30001PRE-AM-10
B
B
B
B - LAND
EHP-30001LAD-AA
EHP-30001LAD-AB
EHP-30001-
167.47
58.50
125.60
77%
15.89
87%
12.00
9.00
100%
10.00
7.50
100%
8.00
6.00
100%
50.00
37.50
100%
200.00
150.00
100%
355.45
266.59
-
Seismic Study
13.23
CDM Consultancy
TOTAL
B
78.00
19.67
14.75
1,300.00
975.00
101.73
62%
100%
100%
586.55
439.91
3,935.19
2,951.39
100%
252.11
91%
8,000.00
6,000.00
100%
800.00
600.00
100%
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LAD-AC
Logistics
TOTAL
K
K
K - BUILDING
EHP-30001BLD-AA
Residential Buildings
TOTAL
MPLANTATIO
N
EHP-30001PLT
O
O
O
Plantation
O - MISCELLANEOUS
EHP-30001MSC-AA
Capital cost
EHP-30001Maintenance and
MSC-AB
Services
EHP-30001MSC-AC
Other Items
TOTAL
O
X
X
Q - SPECIAL T & P
EHP-30001STP
Special T & P
EHP-30001STP-AA
Vehicle
R
R
R
R
R
R
R
100%
668.11
501.08
100%
668.11
501.08
100%
5.00
3.75
5.00
3.75
100%
-
100%
100%
45.00
33.75
20.00
15.00
65.00
48.75
25.28
-69%
25.28
48%
TOTAL
R
6,600.00
TOTAL
O
8,800.00
R - COMMUNICATION
EHP-30001Logistics Roads,
COM-AA
Bridges
EHP-30001COM-AA-01
BRO/PWD Roads
EHP-30001COM-AA-02
Bridges
EHP-30001COM-AA-03
Equipments
EHP-30001COM-AB
Project Roads
EHP-30001COM-AC
Bridges for Project
EHP-30001Miscellaneous
50.00
37.50
50.00
37.50
100%
-
100%
490.00
367.50
100%
100%
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COM-AE
TOTAL
III
EHP-30001T&P
Tools & Plant
TOTAL
IV
TOTAL
Total of Project
Budget
1,250.00
937.50
1,740.00
1,305.00
100%
221.86
166.40
100%
221.86
166.40
100%
120.00
90.00
100%
5,500.00
4,125.00
5,500.00
4,125.00
21,105.1
6
15,828.87 277.39
100%
-
100%
98%
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