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GOVERNMENT OF INDIA
CENTRAL WATER COMMISSION
NEW DELHI
MARCH, 1997GUIDELINES FOR PREPARATION OF
PROJECT ESTIMATES FOR
RIVER VALLEY PROJECTS
(SECOND REVISED EDITION )FOREWORD TO THE SECOND REVISED EDITION
The cost estimate of a project is an important
document and forms the basis for its economic appraisal
techno-economic acceptance by the Technical Advisory
Committee and last but not the least investment clearance
of the Government.
cost estimates of the projects are drawn up on the
basis of prices prevailing at the time of preparation of
the project reports while the projects get executed over a
period of time as per funds made available based upon
envisaged implementation schedule to the extent possible
The project report/cost at the time of appraisal is based
upon the data/information collected by carrying out.
minimum/adequate investigations necessary for preparation
of the project report. The actual layout/designs do get
subjected to change as per actual site conditions at. the
time of execution of individual components of the project
The above factors also become instrumental in increasing
the cost of projects besides other factors such as price
rise, inadequate or lumpsum provisions in the initial
estimate, public resistance at the time of land
acquisition and compensation etc. The rise in project
cost is inevitable particularly in projects which have a
long gestation period.
Water Planning and Project Wing of ¢.W.c. has
brought out the second revised edition of "Guidelines for
Preparation of Project Estimates for River Valley
Projects(1997)". An effort has also been made to make the
guidelines moré comprehensive by incorporating a Chapter
on "Preparation of Cost Estimates for Private Sector Power
Projects", as private sector participation is likely to
increase in the near future.
The C.W.C. would welcome all suggestions for
improvement of the edition.
Mnrebrs Lowen
(RAMESH CHANDRA)
CHATRMAN
CENTRAL WATER COMMISSION
(4i4)