project information memorandum - jharkhandjuidco.jharkhand.gov.in/mis/home/cirfiles/pim...

Jharkhand Urban Infrastructure Development Company (JUIDCO) Ltd. Re-development / Renovation of Bus Stand at Deoghar in Jharkhand

Delhi Integrated Multi Modal Transit System Ltd. 1

JHARKHAND URBAN INFRASTRUCTURE

DEVELOPMENT COMPANY LIMITED

(JUIDCO LTD.)

Urban Development & Housing Department

Government of Jharkhand

Preparation of Detailed Project Report and Project Management Consultancy Services for Re-development / Renovation of Bus Stand at

Deoghar in Jharkhand

Project Information Memorandum



Project Information Memorandum

Project Background

Due to rapid industrialization and growth in the state of Jharkhand during the last decade, there has

been a tremendous increase in the number of public vehicles. There are several large scale industries

located in Jharkhand and other neighbouring states due to which there are frequent movements of

passengers, goods and vehicles from one city to the other. This high influx of economic and tourist

activities has a direct influence on the travel demand. This put immense pressure on the existing

transportation infrastructure. Well-organized transport infrastructure including public transport buses,

bus terminals, bus stops, roads and intelligent transport systems is one of the crucial components to

meet the travel demand needs of a city.

Considering that Bus Stands are the interface between passengers and the public transport system,

an organized system is always advantageous both from the economic point of view as well as

passenger safety. It also depicts a positive image/outlook of a city and its infrastructure. The town has

stands which are located at major locations but bear the look of being congested and unorganized.

The need for upgradation of these existing bus terminals is impending and can be logically justified on

the basis of the following considerations:

Lack of proper passenger amenities

Lack of organized bus circulation, parking areas for buses and boarding & de-boarding

arrangements for passengers resulting in passenger-vehicle incongruity

Increased journey time owing to traffic congestion within the premises

Lack of connectivity with other transit infrastructure viz., personal vehicles (4-wheeler, 2-

wheeler), autos, etc.

The existing facilities of these Bus Stands have been proposed by JUIDCO to be upgraded along with

development of additional bus bays, organized bus circulation and parking zones, auto-rickshaw lane,

parking for transit vehicles (4W & 2W), passenger entry/ exit, terminal building consisting of passenger

circulation and waiting areas, ticket/ reservation counters, cloak room, first-aid room, waiting rooms,

passenger amenities like drinking water, Pay & Use Toilets, Yatri Nivas etc., restaurant, shops, kiosks

and administrative offices, crew restrooms, parcel office and other facilities.

Deoghar district is one of the twenty-four districts of the State, and Deoghar town serves as the

administrative headquarters of this district.



Highlighted in red is the District of Deoghar

Deoghar district is located in the western portion of Santhal Paraganas. It is bounded by Bhagalpur

district to the North, Dumka to the East, Jamtara to the South and Giridih to the West. The district

extends from 24 0 03' to 23 0 38' N latitude and 86 0 28' to 87 0 04' E longitude. It has an area of

2479 km2.

Deoghar has numerous places to visit. These places are scattered all around the town and some of

them are located in rural blocks. Together, Deoghar offers a complete package to tourists which

includes sightseeing, adventure, and yoga tourism.

Shrawan Mela 1Baidyanath Temple in Deoghar holds one of the twelve 'Shiva Jyotirlingams' and is also one of the

51 ‘Shaktipeeths’ in India. The ‘Puranas’ refer to this temple as a fit place for funeral obsequies. The

importance of Deoghar (also known as ‘Babadham’) increases during the month of Shravan. During

this period, lakhs of devotees throng the Baba Baidyanath temple.

1 http://deoghar.nic.in/index.html



Location of Deoghar town in Deoghar district

Site Appreciation

Deoghar Bus Stand was established by the Nagar Panchayat in 1982. It is situated in the heart of

Deoghar town at the intersection of NH 333 & NH 114 A towards Bhagalpur Road. The Stand has a

stadium to its West, Meena Bazar and Paani Tanki to its North, Subidha Hotel to its East, and some

private establishments to its South.

The entry point to the Stand is from its western side which is connected to the NH-114 A, (Deoghar –

Bhagalpur Road) towards Dumka & Godda Road.



8

Site Map of Deoghar Bus Stand

Existing Site Infrastructure

The various infrastructure facilities available at the site:

- Idle bus parking area of 2000 sq. m.

- No independent administrative block

- 2 public toilets (Sulabh Shauchalaya)

- 1 passenger waiting area (dilapidated condition)

- Ticket counters

- Commercial establishments & shops

- 1 Bore well

- Boundary wall

- 1 Passenger waiting shed

- Commercial establishments & shops

- Local workshops

The condition of the boundary wall, pavement and toilets is very poor. The Stand area is occupied by

non-related commercial establishments and trolley vendors. The eastern part is often encroached by

residents and daily dwellers.



Concept Plan

The Government of Jharkhand has proposed an Interstate Bus Terminal (ISBT) at Deoghar near the

Railway Station. In this case all the Interstate and intercity buses shall ply from the proposed ISBT and

the existing bus stand shall be meant for the local buses only. Hence the existing bus stand is to be

re-developed as “City Bus Stand.”

Considering this fact, the concept plan was developed for the City bus stand facilities with the proposal

of commercial establishment within the project site also. This commercial establishment tends to make

the project on Public Private Partnership (PPP) mode. The detailed financial structuring was studied

and found that the existing bus stand may be redeveloped on PPP mode. In this scenario the project

site would include not only the bus stand facility but the commercial establishment also.

In order to determine the capacity of bus stand, the present traffic scenario has been analysed and

forecasted accordingly. These analysis shows that total number of 6 bus bays with 15 minutes of dwell

time shall be sufficient to cater the peak hour capacity.

Proposed Facilities

Passenger Amenities

The activities for the passenger amenities in addition to toilets and cloakroom are given below

Tea/ Coffee Stall/Fruit/ Juice Shops

Sweet Shops/Ice- Cream Parlours/Fast Food Outlets/ Snack Shops

Restaurants

Convenience/ General Merchant stores/ Department stores

Stationary/ Book shop/ newspaper stand

Chemist/ Pharmacist

Travel accessories

Shoe retail/ Repair Outlets

PCO

Barber/ Hair Saloon

Toilet (Male/ Female)

Police Control room

Waiting Room

Cloak Room



Enquiry Booths

Dormitories

Services/Offices

As a part of generating revenue, following category of services or offices can be provisioned within the

complex.

Banks/ Finance Companies/ ATMs

Yatri-Niwas (Boarding & Lodging)

Professionals: Doctors/ Dentist

Business Centre/ Internet Cafe (Telephone, Fax, Internet, e-mail etc.)

Insurance Company Offices

Proposed Redevelopment

Zoning

1. Broadly the entire site is zoned into two parts namely the local bus terminal area and the

Commercial area.

2. The terminal area has been planned towards the rear side of the site to keep frontage for the

dedicated commercial area.

3. The private vehicle entry for the terminal facilities is planned from the rear access.

4. The buses enter the site on the corner of the North-west corner of the site and the bays are

planned towards the rear periphery of the site with the terminal area and administrative

building.

5. Administrative building have the minimum mandatory facilities on the ground floor and the

remaining administrative facilities for terminal have been proposed on the upper floors i.e.

Driver’s rest room, Administrative room, Cloak rooms etc.

6. The buses after the bays exit on the main road itself.

7. Along the front edge of the road the commercial area is planned along with its dedicated entry/

exit drop off and parking.

8. Dedicated basement parking for the commercial establishment is proposed.



Concept Plan

3D View of the Concept Design



3D View of the Concept Design

Area Configuration

Area Statement

Area Statement –Concept Plan

Description Area (sq. m.)

Total Plot Area (as earmarked) 5170

Total Permissible FAR (Floor area Ratio) @ 2.0 10340

Achieved FAR

Administrative block (G+2) 280 x 3

Commercial (G+3) 1105 x 4

TOTAL 5260

Car Parking Calculation

Car Parking Calculation - Concept

Sl. No. Description Required Area

(sq. m.)

Provided Area

(sq. m.)

Bus Terminal

Private Parking

Required parking for facilities

block (1 ECS PER 200 SQM) 96.6 sq m / 4 ECS 100 sq m (surface)

Commercial Area

Parking

Required parking for facilities

block (1 ECS PER 75 SQM)

59 ECS/ 300

surface and 1500

basement

Surface – 13

ECS/300 sqm

Basement – 46

ecs/ 2153 sqm



Planning Configuration

Bus Stand Planning Configuration (administrative building)

Sl. No. Floor Facilities provided Level (assuming

road is 00 lvl)

1 Ground Floor Pedestrian Circulation area

Bus platform

Ticket counters/ Enquiry counters

Police Control room

Toilets

Electrical room/ BMS room

Vertical Circulation elements-

Elevators and Stairs

Drinking Water Fountains (RO)

Shops

+0.30 m LVL

2 First floor Administrative rooms

Shops/ retail spaces

Toilets





+4.1 m LVL

3 Second floor Drivers rest room

Dormitory

Administrative room

Cloak room

Toilets





+7.6 m LVL

4 Terrace Floor Mumty

Machine room

Overhead Tanks

11.10 m LVL

All floor plans of the scheme are shown in Architectural drawings of Annexure I: Detailed Drawings to

this report.



Bus Stand Planning Configuration (Proposed Commercial building)

Sl. No. Floor Facilities provided Level (assuming

road is 00 lvl)

1 Ground Floor Space for Retail/ shops

Toilets





+0.30 m LVL

2 First floor Space for Retail/ shops

Space for Offices

Toilets





+3.8 m LVL

3 Second floor Space for offices

Toilets





+7.3 m LVL

4 Third floor Space for offices

Toilets





+10.8 m LVL

5 Terrace Floor Mumty

Machine room

Overhead Tanks

+14.30 m LVL

Entry & Exit

For the terminal the entry is from the main road on the northern western corner of the main

road and the exit is on the southern corner on the main road.

The private cars and public transport like auto/ taxis enter the plot from the rear access to

have drop off created directly onto the pedestrian plaza and the terminal area.



The private vehicle entry/ exit for the commercial area is proposed from the main road.

At entrances and exits of the Bus way, Mild steel gates have been provided for security and

safety purpose and also for avoiding trespassing during non-operational hours.

Apart from the Gates which will remain open during the operational hours boom barriers have

been provided for monitoring and managing the bus entry/ exit system.

Aluminium composite panelling is done on Gantry structures that have been provided at the

entrance of the Bus stand with name signage in Retro-reflective tape.

Keeping the cultural background of this place the entrance gate has some architectural

elements that of a temple.

Security cabins have been provided near the entrance and exit which houses space for 1

personnel who would manage the bus entry/ exit and assign necessary instructions for parking

etc.

The buses are expected to park at their allotted bays after entering the bus stand.

Separate gates have been provided at the rear side for the private vehicles, autos and 2

wheelers.

Separate entry and exit for private vehicles is planned in this Bus stand with unidirectional

movement

Vehicular Movement

The buses enter from the main road from the north western corner and move at the rear end

to the bus bays adjoin the terminal area and exit a on the southern corner of the main road.

The buses move along the periphery of the commercial plot.

Complete segregation of terminal and non-terminal activities/ traffic

Unidirectional flow of all modes of transport. No loops are formed, the entry and exit is

separate.

Circulation

Patterns of circulation play a determining role in the architectural organization of this bus

stand. In Deoghar, strict segregation of vehicular (bus movement) and pedestrians is initiated

in the entire station.

One way movement

Providing clear circulation will assist the flow of passengers create regular movement

patterns inside the station. Where this is well executed security cameras using smart

detection systems can easily detect abnormal behaviour. Effective signage can also be used

to differentiate between the different objectives in the bus stand (travel, retail, etc.) and to

prioritize circulation flow. For example the information provided about travel should be more

conspicuous than that provided for retail and other ancillary activities.

The key aim of successful circulation will be to reduce as much areas of high concentrations

of people. Specifically to avoid bottlenecks in the bus stand, allowing sufficient space before



and after the ticket gate-lines, elevators, stairs and other critical points where congestion

could occur.

Vertical circulation is provided from a variety of points throughout the station in the form of

stairs and lifts. The combination of non-mechanical and mechanical means of vertical

circulation ensures that there is not a reliance being placed on the local electrical

infrastructure which is generally considered unreliable. This being said, in the event of a

power failure, an emergency backup Diesel Generator will be implemented, which will cause

the lifts to restart automatically.

Pedestrians have conflict free movement which eases the movement patterns and prevents

unwanted accidents even within the complex.

Total area provided for circulation is 520 sq. m. which achieves LOS A+ in 2041 for all

passengers.

Parking

The buses that enter drop off the passengers or park at the respective bay.

Some parking for private vehicles, i.e., cars and two wheelers is proposed near the private

drop off point at the surface level.

Minimum waiting space is provisioned for taxis and autos near the drop off.

Commercial area entry and exit is dedicated and surface / basement parking is planned for

the commercial area.

Adequate space has been provided near the drop off area at the entrance for visitor/

passenger parking of Private vehicles, 2 wheelers and autos/ taxis.

Private vehicle parking for staff and shopkeepers is provisioned at the northern edge.

The road width considered in between two car parks is 5m

The road width considered in between two 2 wheelers is 3m

Islands with soft landscape has been planned at the edges of the parking lot.

Parking area is defined with cement concrete kerbs and individual parking space is

demarcated by paint.

Since Deoghar has population above 10,000,00 the parking criteria for the commercial

establishment changes from 1 ECS per 200 sqm of Built up area to 1 ECS per 75 sqm of

built up area.(Refer Jharkhand Building Bye laws 2016, Table 19)

Therefore 96 sqm of parking area is required for a built up area of 840 sqm and accordingly

100 sqm has been provided for parking at the surface level for terminal area AND 59 ECS of

parking area is required for a built up area of 4420 sqm and accordingly 135 sqm area has



been provided for parking at the surface and 1946 sqm area has been provided for parking

at the basement level for commercial area.

As per the present modal split parking survey done, forecasting of modal split of private

vehicle parking is done and percentages of each mode have been derived. This percentage

is distributed in the entire parking and provision has been kept. The sizes considered for

each of the following are as follows

Cars – 2.5m x 4.5 m (As per Jharkhand Building Bye laws)

2 wheelers – 1m x 2m

Autos/ Taxis – 2.5 m x 4.5 m

The dimensions of the bus bay is shown as follows

The boarding bays have to be easily accessible by the bus with minimum maneuvering.

Considering the availability of space and following reasons, it is preferable that buses turn head first

into the bay because boards are more visible and drivers find it more convenient.



Tyre stopper provision has been made about 1m before the kerb so that the front overhang

of the bus is within the bay and not projected onto the platform.

The edge of the bay is defined by a 300mm high cement concrete kerb.

The clear headroom for the buses is 5.5 m

Steel space frame canopy with toughened glass above has been planned for above the bus

bays partially to provide shade to the de-boarding and alighting passengers.

Platforms

Platforms are the spaces for passengers to move and manoeuvre before and after boarding

and alighting their buses respectively.

These are not enclosed spaces, but roofed areas so that there is protection from sun and

rains.

For visual transparency within the platforms minimum mandatory enclosures are planned in

this area like ticket counters, police control room etc.

Flamed granite is used in flooring for ease of maintenance, durability and for its non-slip

characteristic to aid the old age, physically challenged etc.

Tactile flooring for the visually impaired people has been integrated with the granite flooring

throughout the platform areas.

Directional signage directing towards various spaces like toilets, drinking water etc. is

planned at various locations for the ease of the commuters.

All wall surfaces and column surfaces are cladded with polished granite up to ceiling for ease

of maintenance and durability.



Administrative areas

In the name of administrative areas ticket counters and a Police control booth is located on

the Ground floor as maximum circulation space is desired.

Ticket counters and Enquiry counters have workstations along with granite window counter

for ticketing

The windows in ticket counters are aluminium sliding windows with fixed glass at lower

portion of window with opening for cash and ticket transaction

Aluminium grill for security has been provided at the window

RCC slab at 3m level is provided with Gypsum false ceiling below

Vitrified tile flooring is within the rooms

Internal wall finish is in plastic paint

Police control booth has provision of 2 workstations

First floor has other mandatory administrative spaces like Dormitories, Drivers Rest room,

Cloak rooms, and Administrative offices

All of these rooms are finished with Vitrified tiles on floor, Plastic paint on walls and Oil Bound

Distemper finish on ceiling.

Dormitories are provided with beds with lockable storage cabinets

Toilets

Sanitary provisions have been made as per National Building Code (2005)

Hence, the requirement for the projected Footfall (peak hour) is as follows:

Sanitary facilities for Gents per floor

WC = 2 nos.

Wash basins = 2 nos.

Urinals = 2 nos.

Sanitary facilities for Ladies per floor

WC = 2 nos.

Wash basins = 2 nos.

1 nos. toilet is for the physically handicapped on each floor which is finished with non-slip materials on

the floor and have all support system on walls

The toilet is finished in ceramic tile flooring



In walls, cladding is in ceramic tile up to 7 feet height and Oil Bound distemper finish above

7 feet.

Wash basins counters are made of Polished Granite.

Looking Mirror is fixed in wooden frames at length along the entire wall above the wash basin

up to 7 feet height.

Vertical Circulation elements

Combination of manual and automatic vertical circulation elements is provided.

Staircases have been provided as per the codal provisions in the National Building Code

2005.

Flamed finish granite is for the floors.

Walls are cladded with polished granite up to ceiling for ease of maintenance.

The Geometry of stone cuts is coordinated with the floor joints.

Stainless steel 304 grade railing is provided in the staircase.

15 passenger capacity elevators 1 nos. are provided especially for the physically challenged.

Shops/ Commercial areas

Apart from mandatory facilities in the bus stand certain other facilities like Snacks and Juice

stall etc. are provided

Some shops are provisioned for in the Ground floor that would primarily cater to the basic

requirements of the passengers like snacks and drinks stall

On the first floor apart from the administrative rooms all the commercial activities are provided

in the form of shops.

Bare shell of these rooms is provisioned for and the finishing in terms of floor finish, wall

cladding etc. shall be done as per the end user or the retailer to whom the shop would be

allotted or leased out

Each of the shop is provisioned with rolling shutter for security

Windows for natural ventilation in aluminium finished frames with fixed glass and aluminium

grills

Common areas

All common areas are user friendly

Combination of polished and flamed granite is used in flooring for ease of maintenance,

durability and for its non-slip characteristic to aid the old-age, physically challenged etc.



Tactile flooring for the visually impaired people has been integrated with the granite flooring

throughout the common areas on all floors

Directional signage directing towards various spaces like toilets, drinking water etc. is

planned at various locations for the ease of the commuters

All wall surfaces and column surfaces are cladded with polished granite up to ceiling for ease

of maintenance and durability

All seating in waiting areas is in brushed finish stainless steel finish fixed to the floor and not

kept lose

Seats are with arm rests to discourage sleeping

Bollards are used at entrance areas to control vehicular access in the pedestrian zone

Signage

Signage are user-friendly and provide information essential to users, engendering a sense of

reassurance, security and orientation when entering, exiting or transferring. It shall guide users to

various areas, provide information of the bus stand and its services and provide information on Bus

services. User information shall cover the following as the minimum:

Static signages such as Bus stand name, destination of services, platform number, way

finding signs, direction, entry, and exit

Variable signages such as real time travel information to customers

Maps and long term changeable information on scheduled services and ticket costs

Information on the use or operation of a place or system

Intermodal connections

Emergency exits

Rules of conduct to users

All signages shall have alternate pictorial signages. User information displays are so located

that users seeking information have ready access without obstructing free flow of users.

Signs shall be placed at decision points, and perpendicular to the line of sight. Signages

placed on the left side of passages including stairs, lifts and escalators.

Proper directional signage’s, road markings and road signage’s is envisaged and is required

to be detailed for making the proposal user friendly and efficient. Mandatory sign, information

signs, warning signs as per IRC norms (IRC 67:2001 – code of Practice for road signs & IRC

35-1997- code for practice for Road Markings) is required wherever necessary

Landscape

Landscape features in the form of soft and hard scapes have been provided



Ground cover and shrubs within the parking area and round-abouts have been provided

Ground cover in the form of Iresene would be used

Shrubs like Wedeleia Trilobata and Clerodendrome Inerme will be used

These plantations will add colour to the soft scapes

At the periphery where lamp-posts are proposed, green areas with common grass and

Bougainvillae shall be used

Pedestrian Amenities

Basic pedestrian amenities are provisioned for in the terminal area.

It is expected that large scale barricading of road edges from pedestrian traffic will provide lot

of relief to the motorized vehicular flow from the pedestrian movement

Simultaneously, dedicated channels for pedestrian flow from one zone to another shall ensure

that the requirements for the pedestrians are met in totality.

Pedestrian traffic shall not conflict with other modes of transport.

The proposal focuses on the pedestrian facilities and fills in all the gaps in the same/ it is

mandated that pedestrian circulation has to be safe, secure and fully facilitated so that they do

not have any incentive in sharing road space and mixing with vehicular traffic. The proposal

ensures conflict free movement of pedestrians from one collection zone to other.

Key measures adopted to arrive at the ideal solution for smooth traffic circulation include

pedestrian barriers, foot over bridges, pedestrian underpasses and forcing vehicular merging

and de-merging along the direction of vehicular flow.

Co-ordination of different activities in terms of functional and spatial inter-relationships

Timely dissemination of vehicular and related necessary information to passengers

The proposed redevelopment of the bus stand also included minimum spaces for the

passengers to wind up and relax.

Provision of necessary facilities/utilities to meet the requirement of all user groups

Facility for Physically Challenged

Proper planning for the movement of the physically challenged/ differently abled is envisaged. Ramps

are provided wherever change in level is planned. It is proposed to use mechanical systems like lifts

and escalators for making it easier for pedestrians and physically challenged to encounter changes in

grades. Barrier free movement throughout the bus stand is planned.

Lighting

Lighting is proposed to be upgraded using high mast lighting, pole lights and pedestrian bollard lights

so that a minimum of 100 lux is available everywhere around the complex and paths are properly lit

for the pedestrians.

Other Facilities

Energy efficient and green building features have been incorporated to make the proposed building at

par.



Having the concept plan frozen, engineering surveys like Topographical survey and Geotechnical

Investigations were conducted based on which the detailed Architectural plan and detailed structural

design has been prepared.

Engineering Design

Pavement Design

Rigid Pavement

Rigid pavement is proposed at this bus stand location. Jointed Plain Concrete Pavement is recommended.

The rigid pavement has been designed for a design life of Thirty (30) years. The rigid pavement has been

designed to withstand the cumulative effect of the axle load repetitions of buses applied over the design life

of 30 years.

New Concrete Pavement Design

Layer Type Thickness (mm)

Pavement Quality Concrete (PQC) M 40 Grade 230

Dry Lean Concrete (DLC) M 15 Grade 100

Granular Sub-Base (GSB) 150

Total Pavement Thickness (mm) 480

Services Design

Oil cooled transformer 11/.433KV has been taken to cater to the demand load of the bus stand with

future demand consideration. Power from the local Electricity Department shall be taken to the

transformer through HT VCB panel.

Distribution of power shall be done through LT panels, feeder pillars and Distribution Boards

Further services like emergency power back up i.e provision of Gensets etc.

Emergency Power Back up

Provision of DG set has been taken for emergency power back up in case of main electrical power

failure. Silent type DG sets have been taken.

Fire Fighting Works

Provision of fire-fighting system with fire pumps has been taken for the Bus Stand. Fire hydrants, hose

reels and sprinklers will be provided as per National Building Code 2005. Portable type fire

extinguishers shall be provided at strategic locations. Provision of fire detection and alarm system has

also been taken as per NBC.



CCTV Surveillance System

IP based cameras are being provided at strategic locations in the common areas to keep a watch on

the public activities in the bus stand and also to keep a record of the same to view in future, if required.

Passenger Information System

Software based system is being installed to provide information of buses scheduled from the bus stand

including platform/ bay number and departure time for the convenience of the passengers. Boom

barriers, LED display boards and LED monitors will be provided. PA system is being provided for

announcements regarding the availability of buses and also for any emergency announcement, if

required. The system can be used for collection of revenue from parking of buses.

Solar Power Generation

Provision of solar panel based electricity generation has been taken. Solar panels will be installed at

the available area on the terrace of the building. This will generate electricity during day time and thus

save considerable amount of conventional electrical energy.

Sewerage System

Instead of using the conventional method of sewerage system using setic tanks, soak pits etc, for the

bus stand it is proposed to use Septi-pure readymade septic tanks which have eliminated many

challenges like choking, less retention time, limited sewer treatment etc.and provides more clear

effluent compared to conventional brick-made septic tank.

Features and benefits of SeptiPure Septic Tank:-

1 – No Need to Re-Clean as it is EverClean.

2 – Digest Everything - Flow Out Nothing.

3 – Compact design and can be shifted.

4 – All components are Pre-casted so takes little time to install.

5 – Based on up flow Anaerobic Microorganism.

6 – Install once and forget as Sludge is not accumulated inside the Septic Tank.

7 – EverClean Oxyless SeptiPure Baffle Reactor works best with dual soak well system.

For Deoghar terminal area, 3 units of 500-user tanks are proposed.

And Commercial area, 2 units of 500 user tanks are proposed

Water Supply System

The present source of water supply is groundwater, and in the existing system wastewater recycling

is not practiced. To optimize the water demand and minimize impacts on the environment, it is

recommended to recycle the wastewater generated from site. For an efficient water supply scheme it

is essential to have an integrated approach that would meet the future demand in a sustainable

manner.

Water Pumping Facilities

All pumps shall be designed considering 12 hours operation per day and shall be provided 100%

stand-by capacity.

Storage



Underground storage reservoirs shall be designed for 24 hours so that in case of any emergency, the

operations at the station can sustain smoothly.

Water Distribution System

The main factors considered for the system are peak factor, pipe size, residual pressure, metering,

protection against getting polluted etc.

It is recommended to have a loop system of water supply.

Proposed System

Source

The current source of water supply for the Bus stand is underground water. Presently, no municipal

supply is present. Hence, bore well shall be created.

Network

Drinking water demand of the station including offices and catering shall be fetched from RO units.

Raw water after chlorination shall be used for bus washing. For bus washing treated effluent shall be

recycled and a portion of water demand shall be fulfilled by chlorinated raw water.

Water demand for secondary uses like HVAC, horticulture and flushing shall be met through treated

sewage effluent (TSE).

RO Plant

Separate network and RO units for operational area and commercial area shall be provided. RO plant

shall be designed to meet IS: 10500-2012.

Water Tank Capacity

The size of underground tank is 8 m x 4.5 m x 3.5 m (h) and 13 units of 5000 litres of overhead tanks

are proposed.



Costing and Estimation

Based on the detail drawings of the project detailed estimate has been prepared and the abstract of

the total cost is as follows:

SUMMARY

S.No Description Amount (in Rs.)

1 Detail Cost Estimate of Terminal Area 120,253,703

2 Final Block Cost Estimate of Commercial Area 264,021,768

Total Project Cost 384,275,471

Say 38.43 crores

COST ABSTRACT (TERMINAL AREA)

S.No Description Amount (in Rs.)

A) Civil & Finishing Works

1 Dismantling 1,547,663

2 Earth Work 443,102

3 Concrete Work 1,487,225

4 RCC Work 18,165,456

5 Brick Work 2,713,264

6 Finishing Work 1,979,282

7 Roofing Works 984,659

8 Flooring 7,373,666

9 Steel Works 8,093,889

10 Wooden Works 627,148

11 Aluminium Works 1,398,868

12 Water Supply 1,180,072

13 Sanitary Installations 866,494

14 Road Work 7,774,804

15 Horticulture 79,080

16 Sewerage & Storm Water System 6,278,294

17 Canopy 11,992,158

18 Tube Well 1,161,259

19 Rain Water Harvesting 287,212

20 Miscellaneous Works 721,681

21 Carriage of Material over JSR items 2,336,580

Sub Total (A) 77,491,854

B) Services Work

22 Internal/External Electrical Works 25,290,334

23 Fire Fighting Works 7,011,130

24 Specialized Services 6,257,850

Sub Total (B) 38,559,314

C) Utility Shifting 700,000

Sub Total (C ) 700,000



TOTAL(A+B+C) 116,751,168

Add Project Contingencies @ 3% 3,502,535

GRAND TOTAL 120,253,703

COST ABSTRACT (COMMERCIAL AREA)

S.No. Description of Items Amount (Rs.)

1 Building works 184,142,075

2 Road works 1,475,600

3 Footpath & Passenger movement area 318,800

4 Electrical works 42,019,906

5 Services works (Drainage, Water Tanks & Street lights etc)

23,296,233

6 Boundary wall & Gate 2,433,180

7 Parking Area 218,835

Sub Total 253,904,629

Project Contingencies @ 3% on Total 7,617,138.87

Total Cost of Work (A) 261,521,768

Other General Charges

Utilities shifting 2,500,000

Total of Other General Charges (B) 2,500,000

Total Project Cost (A+B) in Rs. 264,021,768

Say 26.40



Project Structuring & Financial Analysis

Market Demand Assessment & Product Mix

Market Assessment

To assess the project requirements and demand we have conducted a market assessment and

demand assessment study at micro level (existing Bus Terminals and proposed site neighbouring

areas) and at macro level.

Private Bus Stand, Deoghar is situated approximately 1 km away from Baidyanathdham Railway

Station. There are various commercial entities within 2 km radius of bus stand. Various unorganized

retail markets like C P Drolia, Sheetla Mandir Market, Meena Bazaar market etc. which mainly cater

to people belonging to low income groups and medium income groups are there in the vicinity.

Commercial and Retail Rentals in Different Areas

Type Area

(Sq.ft)

Monthly Rental (Rs.

Per month)

Monthly Rental

per sq.ft Remarks

Commercial 150 10000 66 500 m from Bus Stand

on CP Drolia market

Commercial 150 15000 - 20000 100-133 600m from Bus Stand

on SB Rai Road

Commercial 90-100 (Ground Floor)

70 (First Floor)

Central Plaza Mall on

court road nearly 1.5km

from bus stand

Hospitality

Majority of the hotels in the Deoghar are in the two star category. Average occupancy rate in these

hotels is at about 85%.Most of them have a peak season from April to August. Monthly rentals depend

upon the location of the hotel, room type and size. There is lack of high end hotels which can attract

people with high disposable income.



Hotels within Catchment Area

Prominent Hotels in Deoghar

Star Category

Name No of rooms

Hotel Sukhsagar 20

Hotel Rameshwaram 30

Amrapali Clarks Inn 59

Hotel Madhumala International 45

Hotel Padmanane 21

Hotel Narayan Plaza 50

Hotel Jyoti 45

Budgeted Category

Bharti Hotel 30

Gupta hotel 32

Prabha Hotel 37

Rambha Hotel 25

Shiv Shavitri Hotel 22

Yatrik Hotel 55

Hotels’ Tariffs around the site

Sl. No. Name of the

Hotel Type

No. of

Rooms Tariff (Rs. Per Room Night) Occupancy

1. Hotel Maharaja Two star 35 1650-2200 70%

2. Hotel Raj Kamal Two star 46 900-5500 80%

3. Hotel

Baidyanath Two star 28 1500-4500 60%

4. Hotel Mahadev

Palace Two star 51 1900-4700 65%



Inference Based On the Subject Site

Since within the catchment area of 1 km, there is likely to be high growth rate of floating population,

three star category hotels will do well for the area. Average tariffs for AC accommodation could be up

to 4000 Rs. per room.

Unorganized and Organized Retail

Organized retail segments like Central Plaza and Big Bazaar are about 1 km away from bus stand and

mainly cater to medium to high income groups. Temples in the vicinity are a major source of attraction

for pilgrims from all over India. Unorganised small retail markets are also flourishing near those

temples.

Unorganised and Organised Retail near the Site

Inference Based On the Subject Site

Based on research, it is observed that recommended average rental in Deoghar should be about 60

Rs. per square feet due to likelihood from the high demand by floating as well as catchment population.

Sl. No Symbol Type

1 Subject Site

2 Organized Retail

3 Unorganized Retail



Banking Facilities

There are quite a few banking facilities within 1 km radius of the site. Eminent Banks such as ICICI,

State bank Of India, Oriental Bank of commerce provide adequate facilities here. However, there is

scope of development of more ATM facilities within the area and commercial space can be provided

at the proposed site for more ATM facilities.

Banking Facilities around the Bus Stand

Demand Assessment & Product Mix

One of the most critical aspects of this study is assessing demand for select asset classes. Demand

assessment has been done based on following perspectives:

Demand forecasts based on existing trends and projections. Specifically, the fundamentals of demand

assessment for all the asset classes are derived mainly from the total footfalls that are incident at the

subject property. These are instrumental in the success for any business venture keeping in mind the

future development proposition of the Bus Stand. Thus, to reiterate, the key factors driving demand

for various developable asset classes at the subject property are:

Incident footfalls

Transit commuters

Non-Commuters

Catchment population

These assessments have provided indications towards the typologies of developments that are likely

to be most suited for development at the subject property, and are likely to generate highest level of

returns.

This section presents demand projections for commercial development with focus on the subject

property. The demand for retail includes both the organized shops and kiosks. Since the demand for

each cannot be determined separately, it is being calculated as one asset type.

The following assumptions have been used for calculating the incident demand at the subject property:

1 km



Total number of footfalls estimated based on:

o Total number of bus trips

o Various categories of Commuter transit population

Footfalls coming from non-commuters (i.e. catchment population)

Two scenarios have been developed (only passengers/footfalls and combination of footfalls and

catchment population) while assessing demand from a quantitative perspective. These scenarios seek

out the potential growth of target segment, and allows for segmentation between conservative and

non-conservative scenarios. From an assessment viewpoint, it is best that the most conservative

scenario be adopted as it is most likely to incorporate the maximum level of demand-based risk that

the project may have to bear.

Jharkhand GSDP

FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14

GSDP Growth Rate(in % -3.20 2.38 20.52 -1.75 10.14 15.86 4.49 7.43 8.91

Multiplying Factor (in %) 96.80 102.38 120.52 98.25 110.14 115.86 104.49 107.43 108.91

CAGR (in %) 6.95

Since, Jharkhand is registering CAGR of almost 7% in last nine financial years; there will be huge

demand for commercial space at the proposed site. So office space of 500 square metre and kiosks

of 100 square metres will do well for the area. For office space average rentals can be around 45 Rs.

per square feet while for kiosks it can be around 100 Rs. per square feet.

Hotel Demand Assessment

Hospitality Assumptions

Base year 2011

Avg. percentage annual increase in visitors 5%

Floating Population 14343

No. of Trips per Visitor 1

Percentage Of Budgeted Category Tourists 30.00%

Percentage of Star Category Tourists 30.00%

Average duration of stay (in days) 1.00

No. of visitors per annum(in lacs ) 51.64

Percentage of visitors staying in hotels 50.00%

Existing Stock for bus passengers(Star Category) 350

Star Category Calculations(within Catchment Area)

Year 2016 2017 2018 2019 2020 2021 2022

Tourist Arrival

(in Lakhs) 10.37 10.89 11.43 12.00 12.60 13.23 13.89

Star Category

Tourists @ 30% 155,520 163,296 171,461 180,034 189,036 198,487 208,412

Average

duration of stay

@ 1 days

155,520 163,296 171,461 180,034 189,036 198,487 208,412



Room night

demand(per

year)

432 454 476 500 525 551 579

Existing stock 350 350 350 350

Cumulative

stock(Room

nights)

350 350 350 350

Gap(No. of

Room Nights) 82 104 126 150

Provided 60 60 60 60

Other Sources 22 44 66 90

Retail Demand Assessment

Assumptions

Base year 2011

Total Population in catchment 20312

Avg. Annual Exponential Growth(2001-2011) 3% population

Avg. percentage annual increase in visitors 5%

Percentage of Spending Catchment population 30%

Floating Population 14343

Percentage Spending Floating Population 30%

Spending floating population 4303

Daily spending (in Rs.)

Catchment Area Population Spending (in Rs.) 30

Floating Population Spending (in Rs.) 40

Avg. percentage annual increase in monthly spending 10%

No. of Trips per month 1

Avg. Annual increase in retail spent household 7%

Actual percentage of annual retail spent household 30%

Assumed Rental 10% yoy

Appreciation in rental per annum 10%

Assumed Average Rental 60 per sq.ft

Catered Demand Area 25%

Percentage increase in Retail area annually 10%



Retail Area Calculations

Year 2016 2017 2018 2019 2020

Floating Population Option

Floating Population per annum 5,163,595 5,318,503 5,478,058 5,642,400 5,811,672

Number of Trips per month 1 1 1 1 1

Total Daily floating population spend

per head 40 43 46 49 52

Total yearly catchment spend as

revenue to retail(in crores) 20.65 22.76 25.09 27.65 30.47

Occupancy cost (as % of monthly

spend or revenue) 10% 11% 12% 13% 15%

Total Occupancy cost (in crores) 2.07 2.50 3.04 3.68 4.46

Average Monthly lease rent paid by

retailers 60 66 72.6 79.86 87.846

Average yearly lease rent paid by

retailers 720 792 871 958 1,054

Gap(sq.ft) 28,686.64 31,615.55 34,843.49 38,401.01 42,321.76

Catchment Population 20,312 20,921 21,549 22,195 22,861

Total daily catchment spend(in

Crores) 0.06 0.07 0.07 0.08 0.09

Total yearly catchment spend(in

Crores) 21.94 24.18 26.65 29.37 32.36

Year 2016 2017 2018 2019 2020

Floating + Catchment Population

Option

Occupancy cost (as % of monthly

spend or revenue) 10% 11% 12% 13% 15%

Total Occupancy cost (in Crores) 2.19 2.66 3.22 3.91 4.74

Average Monthly lease rent paid by

retailers(Rs.) 60 66.00 72.60 79.86 87.85

Average yearly lease rent paid by

retailers(Rs.) 720 792 871 958 1,054

size of retail - catchment(sq.ft) 30,468 33,579 37,007 40,786 44,950

size of retail - Floating(sq.ft) 28,687 31,616 34,843 38,401 42,322

Gap (in sq ft.) 16,099 17,833 19,753 21,880 24,234

gap(in sq.m) 1496 1657 1835 2033 2251

Project Structuring & Financial Analysis

Project Valuation Methods

The financial viability analysis for the Bus Stand has been conducted to assess the potential structure

which is feasible and probable returns for the project. This section below provides assessment of the

following:

Valuation Methods

Financial Analysis and Project Viability Analysis under different options

Valuation Methods

As per the standard evaluation methodology / procedures, the underlying assets including real estate

potential have been valued based on three different approaches:



a) Circle or Collector Rate Method

b) Rental Yield Method

c) Financial Analysis

a) Collector Rate or Circle Rate Method

Circle Rate or Collector Rate is a benchmark minimum rate defined by the state government at which

a land/ property can be transacted. Circle Rate varies from area to area within city. The Circle Rate

provides one of the basis of valuation of a particular plot/ land being put to a particular use. Since the

Circle Rates are updated by the local authorities from time to time, there can be wide differences from

the market rates making the valuation procedure complex.

The key limitations of the Circle Rate or Collector Rate analysis are as follows:

The Circle Rate or Collector Rate assessment is generally suitable for smaller plots

Since the proposed shops are part of the Bus Stand plot/building, the land use of the site is under

Government Offices (Transport) purpose as per the development /master plan. Adopting

commercial Circle Rate or Collector Rate for entity plot may not reflect the true picture of

valuation

We have done the valuation based on the Guideline Value and using standard methodology of

valuation as provided in the following sections:

Circle Rate Analysis

Sl. No. Description Unit Value

1. Collector Rate or Circle Rate (commercial plot) Rs. /sqm 33,566

2. FAR for Commercial Land Use Ratio 2.00

3. Estimated Built-up area for Commercial land use

/Shops in the Commercial Facility area

Rs. /Sqm 4,370

4. Total value of Built-up Area Rs. 7,33,35,775

5. Discount Factor for long term lease % 30%

6. Net Value of Property Rs. 5,135,043

b) Rental Yield Method

Rental yield analysis has been conducted using rental yield of commercial space in the vicinity of Bus

Stand/major commercial area/main road. The rental yield as per our survey has been assumed at 7%.

The detailed assessment of the project value from rental yield along with assumptions is provided

below.

Rental Yield Analysis


1. Rentable Area Sq.m 47,017

2. Weighted Average value Rs./sq.ft 1,455

3. Yield % 7%

4. Total value of rental yield analysis Rs. Crore 6.84

5. Long Term lease factor 1

6. Construction Cost Rs. Crore 25




7. Residual value factor 0.25

8. Market value of Rental yield analysis Rs. Crore 0.57

c) Financial Analysis

Discounted cash flow analysis is the most preferred method of assessment of project potential and

valuation for such projects and widely followed in the infrastructure sector. The methodology takes into

account the projected revenue, capital cost and operations cost for the operations period of the project.

Based on the cash flow projections the parameters such as equity IRR and net present value are

estimated. For assessment of project potential and conducting discounted cash flow assessment the

following steps have been followed:

Detailed market assessment for

o probable rentals,

o possible increase in rentals

o Capital cost of commercial component

o Operational cost estimation and increase in O&M cost

Assessment of financial issues such as debt equity ratio, interest rates, taxes, etc.

Financial Viability Assessment

To check the financial feasibility of the project and to suggest a suitable implementation structure

including PPP structure for the transaction to take place, we have developed a financial model for the

project. The key highlights of the financial model are as follows:

The financial model estimates the project revenues and cash flows for the full term of the

concession period

The financial model has been designed to run sensitivity analysis under different scenarios.

Sensitivities have been run under different scenarios for inputs such as capital cost, rentals etc.

The values for the input parameters for calculation of revenues and cost have been taken based

on current market trends and industry practices.

Inputs for Revenue Estimation from Other Sources of Revenue

The table below provides the inputs to the revenue estimates from other sources of revenue such as

Bus Entry Fee, Parking Charges and Advertisement revenue.

Input Assumptions for Operations Revenue Estimation

Sl. No. Assumptions Unit Value

1 Total No. of Bus Trips Trips/day 100

a) Intercity Trips/day 100

2 Bus Entry Fee Rs. Per entry 40

a) Annual Increase in Bus Entry Fee % 5

b) No. of Operations Days No. of days 300

3 Growth Rates

a) Intercity Bus Trips Growth Rate % 5.64%

4 Parking Space Provided

a) Equivalent Car Space (ECS) Nos. 4




5 Parking Turnaround No. of Times 2

6 Parking Charges

a) Per Equivalent Car Space Rs. 20

7 Annual increase in parking charges % 5%

8 Advertisement Revenue Rs.

Lakhs/annum

0.50

9 Annual Increase in Advertisement

Revenue

5%

Inputs for Maintenance Cost – Terminal Building

Annual, periodic and regular maintenance cost has been estimated based on CPWD manual, SOR

and best industry practice basis for Bus Stand and the same is presented below.

Input Assumptions for Maintenance Cost Estimation – Terminal Area

Sl. No. Description Unit Area Rate Amount (Rs.) Remarks

1 Building Area

a) Day to Day repair

charges- cost per year

Sq.m 804 6.85 5,507 CPWD

manual

b) Annual Repairs Sq.m 804 7.85 6,311 CPWD

manual

c) Sub- Total 11,818

2 Road Repairs

a) Tack Coat- total road

area

Sq.m 1,650 12 19,800 S.O.R 5.2

b) B.M. for filling road

cuts -5% area x.1M

cuts

Cu.m 8.3 9217 76,040 S.O.R 5.6

Aii

c) Surface Dressing Sq.m 1,650 79 130,350 S.O.R.5.9

ii

3 Replacing paver

blocks- 5% area

Sq.m 33 1,350 44,550 LS

4 Repairs to Kerbs -10%

Quantity

M 12.5 414 5,175 LS

5 Repairs to Boundary

wall & Gates-5%

188,800 LS

6 AMC for 02 lifts-(2*Rs

100000/year)

2,00,000 Market

Rate

7 Annual Maintenance

cost

676,534

Contingency on

Sr.No.(6)

3% 20,296

8 Total Annual

Maintenance

69,6830

9 Special Repairs –

Building (every 15

years once)

Sq.m 804 4.65 3,738 CPWD

manual

Contingency @ 3% 112

Sub-Total Special

Repairs

3,851



Sl. No. Description Unit Area Rate Amount (Rs.) Remarks

10 Dense Carpeting of

Road (every 5 years,

after initial 8 years)

a) Tack Coat Sq.m 9,900 12 1,18,800 S.O.R 5.2

b) B.M. for filling road

cuts

Cu.m 24.75 9,217 2,28,121 S.O.R 5.6

A ii

c) B.C Cu.m 198 10,057 19,91,286 S.O.R.

5.7 ii

Sub. Total –Dense

Carpeting of Road

23,38,207

Contingency @ 3% 70,146

Total- Dense

Carpeting of Road

24,08,353

Inputs for Operations of Bus Stand

The estimated manpower requirement for operations of Bus Stand is set out below. Annual increase

in manpower cost is assumed at 7% per annum.

Input Assumptions for Manpower for Bus Stand Operations & Management

Sl. No. Assumptions Nos. Rs /.Month Total per Month (Rs.)

1 Operations Manager 1 40,000 40,000

2 Multi-skilled Technicians 1 15,000 15,000

3 Lift Operator 1 12,000 12,000

4 Housekeeping Janitors 2 10,000 20,000

5 Parking Attendants 1 10,000 10,000

6 Cashiers 1 12,000 12,000

7 Security Guards 1 15,000 15,000

Total Manpower 124,000

Key Assumptions for Hotel

Area and Facilities

The area and facilities related inputs for budget hotel are presented in the table below:

Budget Hotel - Area and Facilities

Parameters Unit Value

Built-up Area Sq. ft. 32,292

No. of Rooms Nos. 62

Construction Cost and Phasing Inputs

The inputs related to construction cost and phasing for the hotel are presented in the table below:

Hotel - Construction Cost and Phasing


No. of years for construction

2

Increase in Construction Cost % 5%

Construction Phasing Year 1 70%



Year 2 30%

Assumptions for Revenue Estimation

The inputs related to estimation of revenues from room tariff of the hotel are presented in the table

below. The assumptions have been based on detailed market assessment conducted for the project.

Hotel - Inputs for Revenue Estimation from Room Rentals


Average Room Revenue Rs/ Room night 4,000

Growth Rate – Long-term Revenues % 6%

Occupancy % 70.0%

The revenue from other sources from the hotel have been estimated based on 2012-13 survey report

of Federation of Hotel and Restaurant Association of India (FHRAI).

Hotel: Inputs for other Sources of Revenue

Food and beverage 42.8%

Banquet and Conference 13.1%

Telephone and others 1.2%

Minor Operated Departments

(Laundry, gift shop, business centre, news stand,

sports, health club, garage, parking, etc.)

6.3%

Rental and other income 5.2%

Assumptions for Operations and Maintenance Cost

The estimation of operations and maintenance cost from the hotel have been estimated based on

2012-13 survey report of Federation of Hotel and Restaurant Association of India (FHRAI).

Budget Hotel - Assumptions for O&M Cost

Departmental Expenses as % of Revenue from respective Source

Room 12.7%

Food and beverage (including banquet) 51.4%

Telephone and others 85.6%

Minor operated departments 56.4%

Rental and other income 0.2%

Operating Expenses as % of total revenue

A&G 11.3%

Management fee 0.8%

Marketing 4.6%

Franchisee fee 0.1%

Property operations & Maintenance 7.4%

Energy 7.6%

Fixed Expenses as % of Total Revenue

Property tax 0.6%

Insurance 1.3%



Others 0.1%

Rent 3.7%

Key Assumptions and Input Parameters for Retail Space

Area and Facilities

The area and facilities related inputs for Retail Space envisaged are presented in the table below:

Retail Space - Area and Facilities


Built-up Area Sq. ft. 8,267


The inputs related to construction cost and phasing for Retail space are presented in the table below:

Retail Space - Construction Cost and Phasing


Years for construction Year 2


Construction Phasing Year 1 70% Year 2 30%


The inputs related to estimation of revenues for Retail space are presented in the table below. The

average rentals as indicated has been estimated based on detailed assessment of rentals prevalent

in the area. The increase in rentals has been taken as per industry and area specific trends i.e. 15%

every 3 years. The Advertisement revenues have been estimated based on industry trends and our

experience.

Retail Space - Inputs for Revenue Estimation


Average Rentals Rs/sqft/ month 60

Increase in rentals % 15% every 3 years

Advertisement Revenue % of rentals 5%


The inputs related to estimation of operations and maintenance cost for Retail Space is presented in

the table below:

Retail Space - Assumptions for O&M Cost


Marketing cost % of rentals 3%

Asset Management fee % of rentals 3%



Typically the Common Area Maintenance charges (CAM) is charged over and above the rental values

from the end users. It has been assumed that the maintenance cost shall be revenue neutral in this

case. The developer shall charge the end user, maintenance cost over and above the rentals and the

same shall be expended by the developer for maintenance of the commercial areas. The marketing

cost and asset management fee have been assumed as per the industry standards. The marketing

cost shall include the cost of brokerage.

Key Assumptions and Input Parameters for Office Space

Area and Facilities

The area and facilities related inputs for office space envisaged are presented in the table below:

Office Space - Area and Facilities


Built-up Area Sqft 5,382


The inputs related to construction cost and phasing for Office space are presented in the table below:

Office Space - Construction Cost and Phasing


Years for Construction Year 2


Construction Phasing Year 1 70% Year 2 30%


The inputs related to estimation of revenues for Office space are presented in the table below. The

increase in rentals has been taken as per industry and area specific trends i.e. 15% every 3 years.

Office Space - Inputs for Revenue Estimation


Average Rentals Rs/sq ft/ month 45

Increase in Rentals % 15% every 3 years


The inputs related to estimation of operations and maintenance cost for Retail Space is presented in

the table below:

Retail Space - Assumptions for O&M Cost


Marketing cost % of rentals 3%

Asset Management fee % of rentals 3%

Typically the Common Area Maintenance charges (CAM) is charged over and above the rental values



from the end users. It has been assumed that the maintenance cost shall be revenue neutral in this

case. The developer shall charge the end maintenance cost over and above the rentals and the same

shall be expended by the developer for maintenance of the commercial areas. The marketing cost and

asset management fee have been assumed as per the industry standards. The marketing cost shall

include the cost of brokerage.

Inputs for Kiosks Revenue Estimation at Terminal Building

Other Assumptions

Sl. No. Items Unit Value

1 Kiosks + Food courts Sq.m 1,076

2 Rentals – Kiosks Rs./sft/month 100

Inputs for Consumption Expenses Estimation at Terminal Building

Consumptions, utilities charges for the bus stand and other expenses are estimated based on the

following assumptions.

Other Assumptions – Consumption Expenses for Terminal Building

Sl.

No.

Items Unit Value

1 Miscellaneous expenditure

(consumables)

Rs. /sq m /month 6

2 Annual Increase % 7%

3 Special Repairs annual escalation

rate

% 5%

4 Dense Carpeting of Road annual

escalation rate

% 5%

Inputs for Capital Cost and Phasing

It is assumed that within two years the project will be implemented.

Implementation Phasing


1 Construction Period Year 2

2 Construction Year Year 2017 & 2018

Financial Assumption Inputs

The table below provides the financial assumption inputs for estimation of project viability:

Financial Assumption Inputs


1 Start of Construction Year 2017

2 Years for Construction No. of years 2

3 Operating Year Year 2019

4 Max Depreciation Rate for Accounts - SLM % 95%

5 Max Depreciation Rate for Taxation - WDV % 100%

6 Debt % 60%




7 Equity % 40%

8 VGF on Bus Stand Building Cost % 30%

9 Upfront equity as a % of total equity % 25%

11 Long Term Loan Interest Rate % 13%

12 Repayment Period Years 7

13 Moratorium after start of operations Years 0

14 Corporate Tax % 34.61%

15 MAT % 21.34%

Main Features of a PPP Project

PPP Project is a project based on a contract or Concession Agreement between a Government or

statutory entity and a private sector company, with the following essential elements:

Fixed Concession period

Pre-determined user charges/tariff

Pre-determined scope of work for the Concessionaire

Pre-determined bidding parameters, i.e., VGF/ Premium/Revenue Sharing/ Lease Rent

All conditions, specifications, and project agreements frozen prior to inviting final bids

Key Performance Indicators and measurable parameters

Dispute resolution mechanism

Independent agency for ensuring of project implementation in accordance with agreed terms and

conditions

Land required for the project available with the Implementing Agency

Viability Gap Funding

Government may provide Grant/Subsidy to the Concessionaire, depending on the financial viability of

a project. Depending on viability of the project, there may be a negative grant /premium to be paid by

the Concessionaire to the Implementing Agency, which shall be decided on the basis of competitive

bidding.

Project Development Options Analysis

The Bus Stand project (“Project Facilities”) can be divided in to following:

i.) Bus Stand Facility; and

ii.) Commercial Facility

Entire Project on Design Build Finance Operate Transfer (DBFOT) Model

DBFOT is the most common form of Public Private Partnership structure. It is possible to identify one

single private developer who would be responsible for both project implementation phase as well as

project operations phase. Therefore, such selected operator shall undertake - detailed engineering

activities, plan and construct, raise finances, operate, maintain, manage, collect revenue, repay loan,

make additional investments for capacity augmentation and replacement. The single point

responsibility is a good PPP structure and also always innovation in construction, design and

operations to happen. The selected developer will undertake construction, operations and

maintenance of both Bus Terminal Facility and Commercial Facility.



While a financially free standing project would involve payment to the government, a financially weaker

project can be supported by government through a capital and / or operations grant.

The private financing component gives the private sector the flexibility to plan its capital investment to

maximise returns. This ensures optimal use of capital resources in government projects. While the

Government retains ownership of the facility, the DBFOT approach attracts private financing to the

extent possible for the project that can be repaid with revenues generated during the facility’s

operation.

Payment Structure Option Analysis

Evaluation of possible payment options are set out below:

(i) Variable Annual Lease Payment:

Bidders are required to quote the annual lease payment payable to the Government/department

during the Operations phase of the project. Successful Bidder would be identified based on

highest annual payment quoted by the Bidder for the Project.

(ii) Annual Revenue Share model: In this structure bidders are required to quote percentage revenue

share in their price proposal. It would be difficult to quantify the future revenue to estimate

quantum of revenue share amount at the price proposal evaluation stage. Therefore this payment

mechanism is not suitable to evaluate the price proposals.

Based on the aforesaid options analysis, it is suggested that annual Lease Payment /Rentals may

be adopted as bid parameter.

Minimum Built-up area will be specified in the bid document, if the Concessionaire decided to construct

or utilize more built-up area then the Annual Lease Payment /Rental would be calculated based on



the additional area to be constructed on a pro-rata basis. This would ensure no undue windfall gains

to the Concessionaire due to constructing additional built-up area over and above the specified

minimum built-up area in the Bid Document. However, the permissible built-up area shall not exceed

the limit of FAR of 2.

Recommended PPP Option

It is recommended that the project may be implemented through private participation on Design, Build,

Finance, Operate and Transfer (DBFOT) basis for the following reasons:

i. The mobilisation of finances would be the responsibility of the private developer for the entire

project.

The required finance required for the project would have to be raised by the private

developer within a pre-specified time-frame.

The project will be implemented in a fully competitive bidding situation and therefore it would

get constructed at the lowest possible cost by the Private Partner.

ii. The risk of time-bound completion of the project would be passed on to the private

developer. Since the revenue streams from the project would commence only after

completion of the project, it would be in the interest of the private developer to complete the

project as early as possible. Government may also stipulate a penalty to be paid by the

private developer in case of delay in implementation of the project.

iii. The risk of over-runs in construction cost and operational expenses would be passed on to

the private partner/ developer. Since the private developer would be responsible for the

implementation of the project, any increase in cost of the project would also be borne by

him.

Project Risk Assessment

Recently, the design-build-operate-transfer structures of PPP have gained popularity as a means of

effectively delivering large-scale transportation infrastructure projects such as Bus/passenger

Terminals, urban rail transport and Bus transport. Past experience suggest that introducing

competition and market forces into the procurement of public infrastructure can make decision making

more accountable, contribute to greater technological innovation, and reduce the potential for

construction-cost escalations that consistently have plagued transportation projects.

DBFOT/BOT is a development of existing practice, except that bids are evaluated on the basis of the

lowest public sector subsidy/grant required (subject to this being less than the maximum justified on

the basis of the project’s external benefits).

Evaluation of Project Structuring Options

a) Key issues and Structures

Options available under PPP framework can be grouped in terms of:



Role of Private Sector during construction phase (Project Implementation Phase).This

phase involves detailed engineering activities, planning and construction, raising

finances.

Role of Private Sector during operations phase (Project Operations Phase). This phase

involves operation, maintenance, management, revenue collection loan repayments,

additional investments on capacity augmentation and replacement.

Key inputs to a large urban transport infrastructure projects are in terms of identifying adequate

financial, technical, manpower resources. Besides, the aforesaid, local and site specific issues

pertaining to rehabilitation of offered affected people, present condition of utilities which may

require re-location, environmental related aspects also play a major role. Further, often the

capacity to pay / willingness to pay over in a potentially high demand scenario can also effect

the decision of selecting a project structure.

Further a public policy which supports public transport over private transport can also provide

key thrust to select a suitable project structure which ensures long term high usage of public

transport over private transport.

The solution to the aforesaid can be found through allocating risks to the agency which can

best manage such risk e.g. utility relocation, where the cost and volume of work involved is

difficult to be ascertained by a private operator due to (1) incomplete information on location

and extent of diversion required and (2) incomplete information on quality of assets, since the

utility asset may have deteriorated beyond a condition where it may require a new system /

materials. Therefore if such a risk is put on a private operator, the private operator may put a

very large premium to take on such risk.

b) Typical Risk Allocation Matrix

The table below shows the typical risk allocation matrix in different project structuring

scenarios.

Summary of Risk Allocation Matrix

Risk Type Sensitivity Risk Period Primary

Risk

Bearer

Remarks

a) Pre-operative Risk

Financing Risk High Typically within

90-180 days

from signing of

concession

agreement

Private

Partner

The private partner will be required to

ensure financial closure of the project

unless a time extension may be provided

by the Concessioning Authority in terms of

the Concession Agreement.

Inability to ensure financial closure within

the stipulated time and any further

extension thereof would result in a default

on the part of the private partner and

accordingly performance security would be

forfeited / enchased.




Risk

Bearer

Remarks

Approvals/Per

mits

Medium Typically within

90-180 days

from signing of

concession

agreement

Private

Partner

The Concessioning Authority will facilitate

in obtaining necessary clearances and

approvals. However the responsibility of

obtaining the same will be with the private

partner.

b) Risk During Construction Period

Design Risk High Typically within

24 months from

date of signing

of the

Concession

Agreement

Private

Partner

The private partner will be required to

submit a detailed construction design for

review. The private partner should also to

provide design warranties for the project.

Construction

Risk

Medium Typically within

24 months from

compliance

date

Private

Partner

For the duration of the concession period,

the private partner is required to furnish a

performance security. During the

construction period, the private partner is

required to facilitate periodic inspection

and required to submit monthly progress

reports.

Delays in

construction

Medium Timelines as

per the

Concession

Agreement

Concessio

ning

Authority

and

Private

Partner

In the event of delay in construction

beyond the extension as may be provided

by the Concessioning Authority by private

partner performance security shall be

forfeited. In case of delay due to

Concessioning Authority, private partner is

entitled to receive suitable compensation

from the Conessioning Authority.

c) Operation Phase Risk

Revenue Risk Low Entire

Concession

Period

Private

Partner

A notification could be issued to the effect

that all buses would be required to halt,

drop and pick up passengers from the Bus

Terminal. However, the private partner

may not been able to ensure that all buses

use the Bus Terminal facilities as per the

schedules, therefore it may impact add fee

revenues. However, the share of adda fee

is insignificant when compare overall

revenue stream for the project.

Policy Risk Low Entire

Concession

Period

Concessio

ning

Authority

In case of any changes/modification in

laws, interpretations of the same or

impositions of new statutory or regulatory

approvals or taxes or duties imposed

subsequent to the proposal acceptance

date, the concessioning authority would

take necessary action to ensure that there

is no change (beyond the agreed terms) to

the private partner’s legal, commercial and

financial position as a result of such

change.




Risk

Bearer

Remarks

Change of

Scope of Risk

Medium Entire

Concession

Period

Concessio

ning

Authority

and

Private

Partner

If any variations were initiated by the

private partner, a proposal for the same

would be sought from the private partner

and if found reasonable, necessary

changes would be made to the concession

period.

In case variations were initiated by the

Concessioning Authority, the private

partner would be entitled to make a claim

for additional cost.

Performance

Risk

High Entire

Concession

Period

Private

Partner

The private partner is required to maintain

standards during the construction as well

as O&M period as per the detailed

specifications in the concession

agreement. In case of non-compliance, the

Concessioning Authority has the power to

invoke the performance security.

Operation and

Maintenance

Risk

Medium Entire

Concession

Period

Private

Partner

The private operator was required to

create an O&M manual, detailing the

regular and preventive maintenance which

would be undertaken. Strict adherence to

the performance standards as per the

concession agreement and O&M manual

is required failing which the Concessioning

Authority has the right to invoke the

performance security and impose a

penalty for non- compliance.

d) Other Risks

Handover

/Hand back

Risk

Medium In case of

Termination or

expiry of

concession

Private

Partner

The Concessioning Authority has the right

to assess the condition of the project

facilities to ensure that they met the

standards specified in concession

agreement after taking into account

reasonable wear and tear. Any shortfalls

needed to be remedied by the private

partner prior to handover of assets.

Force Majeure Low Entire

Concession

Period

Concessio

ning

Authority

and

Private

Partner

This risk was partially covered through

insurance. In case of force majeure prior to

commencement of the project, an

extension to the concession period for the

time period of the force majeure would be

provided with each party bearing its own

respective costs.

In case of a force majeure subsequent to

the commencement date and before

construction completion, an extension of

the concession period for the duration of

force majeure would be provided.




Risk

Bearer

Remarks

In case of a force majeure subsequent to

issue of the completion certificate, the

private partner would be required to make

reasonable efforts to collect the user

charges. In the event that private partner is

unable to collect the user charges, the

concession period would be extended by

the time period for which the private

partner was unable to collect the user

charges.

In case of force majeure as a political event

disrupting the project, the Concessioning

Authority would reimburse the entire loss

incurred by the private operator.

Indicative Term Sheet for Development of Project Facilities

Description Details

Arrangement The selected developer would develop Bus Stand and Commercial Facility

under DBFOT pattern

The developer to recover its investments over a period of time from revenues

from Bus Stand operations revenue, commercial development created under

the project and any other applicable sources.

Concession Period 33 year Concession from date of the signing of the Concession Agreement. the

Concession Period includes 2 years construction activities

Annual Lease

Payment/Rentals (bid

parameter)

Annual Lease Payment by the Concessionaire throughout the period of the

Concession

Role of Government Grant of concession of the project site to the concessionaire

Provision of adequate rights to the concessionaire for collection of user

charges, parking fees and rentals from commercials.

Provide assistance in obtaining all the required clearances

Notification as required should be issued to the effect that all Inter State,

intercity and intra city buses would be required to halt, drop and pick up

passengers at the proposed Bus Stand

Role of

Concessionaire

Prepare detailed design /master plan for Project and its components

Detailed designing and Engineering of facilities based on Concept

Achieving financial closure and making the necessary capital investment

Construction, Marketing, Operating, Maintaining and Managing (Utilities,

Facilities, Equipment etc.) the Project during the Concession Period

Obtaining all clearances/approvals from the concerned Government

Undertake construction, operation and maintenance of Project Facility



Taxes Applicable for the Project

Corporate Tax Rate

The corporate tax rate for domestic companies is 30% + surcharge of 12% when total income exceeds

Rs 10 million for the current financial year (2016-17). Plus education cess and secondary (2%) and

higher education cess (1%). The total tax rate comes out to be 34.608%. The corporate tax gets

calculated by adjusting for any carry forward losses of the previous years from the profits of current

year.

Minimum Alternate Tax (MAT)

The MAT is imposed when corporate income tax payable on the total income is less than 18.5% of

book profits, then MAT is payable on book profits at a rate of 18.5% + surcharge of 12% when total

income exceeds Rs. 10 million. Plus education cess and secondary and higher education cess (3%).

The total tax rate comes out to be 21.342%. Further, MAT credit can be carried forward for next 10

years and can be set off against payable corporate tax during subsequent years as per section 115JAA

of the Income Tax Act.

Tax Holidays - Deductions under 80IA

Section 80IA (1) provides for tax holiday of 10 consecutive years out of first 15 years of business for

development and O&M of infrastructure projects. However for Inter State Bus Terminal development

project, 80IA tax holiday benefit shall not be applicable for profits earned from commercial component.

Hence 80IA benefit has not been considered in our analysis.

Summary of Financial Viability Analysis under DBFOT Model

Following table presents, analysis carried out for DBFOT (Design, Build, Finance, Operate and

Transfer) structure for implementation of entire project.

Summary of Key Results

Sl. No. Description Unit Total

1 Segment wise Equity Return without payment by

Developer & VGF to Developer NPV@20%

a) Bus Stand Facility (BSF) Rs. Crore -2.62

b) Commercial – CF Rs. Crore -0.71

c) Hotel inside CF Rs. Crore +2.36

2 Estimated Payments & Equity Returns to Developer

a) VGF as Percentage of Bus Stand CAPEX % 30%

b) VGF Amount Rs. Crore 2.26



Sl. No. Description Unit Total

c) Annual Lease Payment by Developer Rs. Crore 0.11

d) Total Annual Lease Payment by Developer Rs. Crore 7.80

e) Equity Return to Developer (EIRR) % 19.44%

f) NPV of Equity to developer (@ 20% Discount Rate) Rs. Crore -0.56

Summary

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