Wednesday, 21 June 2017
Tuesday, 20 June 2017
MAKARA RASI ANI MATHA PALN 15-06-2017 TO 16-07-2017
For the Month of ani tamil predictions are foruthratam nakshattiram 2,3,4 patha,thiruvonam 1,2,3,4 patham and avittam 1,2 patham
MESHA RASI PALNGAL -ANI MONTH -15-06-2017 TO 16-07=2017
Mesham is the first and raising rasi house among the twelve rasis in the vedic horoscope chart. People who are born in the mesha rasi always think higher
Monday, 12 December 2016
Herbal medicines with beauty tips
The
plants which are normally used in daily Indian food partly act as medicines
also. These herbs were found out by ancestors and used in food on regular
basis. One such item is curry leaf. The botanical name of this plant is Murraya
Koenig Spreng. In indain houses especially in south Indian houses the foods
prepared during lunch an item called samba/rasam will be added with Rice. This
item is garnished by curryleaf.Eventhough this curry leaf is added only to increase
the flavour of the item it has got lot of medical characters which heals lot of
diseases.
It is a good medicine to stop anaemia.
By making the curry leaves witnah some other ingredients will stop anaemia due
to its large anti oxidant properties. Curry leaves are rich in iron, calcium, potassium
and vitamin curry leaves can be added with dried grapes ( around 15 Numbers)
and make it as a fine paste. This paste is added with cool water and heat up to
the boiling temperature. Take out the solution and filter it through a strainer.
This water can be added with palm sugar. This tea must be taken for continuous
21 days during morning and evening will increase the haemoglobin and reduce anaemia.
It further helps to reduce stomach pain
and stomach related diseases.
One another best medical effect of
curry leaves is to increases the hair growth by stopping growth of dandruff. Tak e two handful of curry leaves. Add it two
handful of Shoe flower leaves ( Hibiscus
rosa-sinensis ). Make it as a fine paste. Apply this paste on hair. Allow the
hair to dry with the paste applied. After half an hour wash the hair with warm
water. Dry the hair possibly with natural way. In due course of time it will
stop hair falling and increase the hair growth rapidly
Curry leaves got another excellent
medical character. It helps in improving the digestion and reduces the stomach problems like
Irritating Bowl Syndrome(IBP).A small recipe made out of curry leaves will cure
the disese slowly. The main ingredients required for preparation of this recipe
is curry leaves, Black pepper ,Garlic, Red
chilly and black lentil. Initially dry roast the black lentil. Dry roast curry
leaves. Garlic ,black pepper ,red chilly is also dry roasted separately. Add
little amount of asefoedeta. Add all the
dry roasted ingredients and make it as a fine Powder. Keep it in a Air tight
container. While taking lunch this powder can be added with rice along with gingilly oil. Add little bit of
sugar to taste. Taking food with this powder will reduce stomach problems ,
Sunday, 11 December 2016
cooling t-Thermal power plantsower
Considerable duration of high summer ambient temperatures coupled with low
Relative humidity values adequate density difference would not be available for
Proper design and operational performance of Natural draft cooling tower . For such sites, mechanical induced draft type cooling towers should be preferred . In case of once through system, desisting arrangement and travelling water screens of appropriate mesh size are provided at the intake section to prevent debris and biological species in source water from entering to cooling water and plant water systems. In case of sea water based cooling water system, debris filters of appropriate mesh size shall be provided at upstream section of condenser for further removing debris from the cooling water and thus reducing fouling of condenser tubes. In the mechanical induced draft type cooling tower is of single or double inlet,cross flow or counter flow type with the fans located on top of the tower. The
natural draft type cooling tower is of counter flow or cross flow type with draft
for air flow through the packing provided by buoyancy effect of hot and humid
air inside the tower shell as compared to outside ambient air. Splash type or film type. However, due to ambient air having high levels of dust, splash type film is preferred for both types of towers Because of high salt concentration; cooling tower drift and salt contamination in the environment are considerations for cooling towers with sea-water makeup. The drift will contain very high (up to 55,000 ppm) concentration of total dissolved solids, hence a sea water cooling tower should not be located close to sensitive equipment to minimize corrosion effect. To avoid long distance drift of high concentration salt water, it is recommended that the distribution system be designed for low-pressure spray nozzles, which will reduce the quantity of water droplets impinging on the drift eliminators. Drift rate is limited to 0.02 to 0.05 percent of the circulation water flow rate.A typical sea-water cooling tower operates at cycle of concentration ranging from 1.3 to 1.5 and size of cooling tower is 5 to 10 percent larger than a similar capacity fresh-water system. This is because sea water, having high salt concentration, lowers the water’s vapour pressure and reduces the evaporative cooling rate by 5 to 8 percent (depending on salt concentration). Approach temperatures used for design of towers must consider the effect salt water has on tower performance. Distribution piping of PVC performs well in salt water service. The fan blades may be of glass reinforced polyester or epoxy coated aluminum.Gear reducers, bearing housings and fan hubs may be made of cast iron provided they are protected with a heavy coating of epoxy enamel. Mechanical equipment supports and welded steel fan hubs should also be protected with a heavy coating of epoxy enamel. Since stainless steel resists salt water very well in areas which are highly aerated, drive shafts and fasteners in the mechanical equipment should be made with type 316 stainless steel.
Power purchase Agreement
Definition of A power purchase agreement (PPA), or electricity power a agreement, is a contract between two
parties, one which generates electricity (the seller) and one which is looking
to purchase electricity (the buyer). In the agreement all the terms and
conditions regarding commercial matters such as when the project will begin commercial operation,
schedule for delivery of electricity, penalties for under delivery, payment
terms, and termination are agreed in detail. The Power Purchase agreement is a
key item in setting up a power project .The project finance largely depends on
this power purchase agreement which explains the revenue and credit quality of
the power generating project. Since the requirement of power will be on
continuous basis the buyer and seller enter into the agreement for minimum 5 to
20 years .During this contract period the buyer purchase energy and other
auxiliary services also. According to power purchase agreement the
responsibility of the selling company of Power is to own the power project by
himself and form a special purpose entity to facilitate the non-recourse
project finance. The responsibility of the buyer of the power purchase
agreement is to purchase the electricity to meet its customers needs.le. Electricity traders may also enter into PPA with the Seller. one of
the key benefits of the Power purchase agreement is that by clearly defining
the output of the generating assets (such as a solar electric system) and the
credit of its associated revenue streams, a Power purchase agreement can be
used by the PPA provider to raise non-recourse financing from as
per the agreement must be supplied to the buyer. Before the seller can sell
electricity to a bank or other financing counterparty. The time
is the essence of the power purchase agreement. The date of signing the
contract between the two parties is called as effective date of the contract.
The generation of power should start as per the completion date mentioned in
the contract agreement. Again it is very clear that the entire power produced
by the power producing company the buyer, the project must be fully tested and
commissioned to ensure reliability and comply with established commercial
practices. The commercial operation date is defined as the date after which all
testing and commissioning has been completed and is the initiation date to
which the seller can start producing electricity for sale (i.e. when the
project has been substantially completed). The commercial operation date also
specifies the period of operation, including an end date that is contractually
agreed
Friday, 9 December 2016
Project consultants way of estimating the cost
The project consultants/
detailed engineering contractors are selected by the owners setting up the
plant based on the detailed engineering companies experience in their previous projects,
the resources that company have to execute the project and their collaborators
who can extend their support during execution of the project including the
technical knowhow the project consultant they have of their own or with tie up
with their collaborators. Even though the detailed Engineering consultant
posses major above said qualities the cost element plays a vital role while
selecting the project consultant by the owner. Hence it becomes very much
necessary for the project consultant also to optimise their cost to secure the
contract with the owner. In normal circumstances all the companies wants to
save the cost of the project from day one which will help in completion of the
project within the budgeted cost. .The owner starts control process with floating of tenders to various
project/detailed engineering consultants . The project consultants/ detailed
engineering contractors starts working in their estimate with basic inputs provided by the owner and
develop the mass flow/ heat flow diagrams. The basic main important equipment
details are provided by owner or by the
process licenciator. On development of the said drawings the detailed
engineering contractors calculate the number of drawings which may be required
to be designed and detailed by them during the execution of the project. The
number of P&I diagrams required, the number of isometrics to be designed
etc are calculated by the companies. If the owner further wants the contractor
to carry out other services like monitoring of supply of equipments,
supervision of civil, mechanical, electrical & instrumentation works .The
consulting companies start calculating the man-hours required to be spend by
the company for developing whole project drawings and number of man hours going
to be spent on other activities. Based on market rates of Engineers/technicians
and other category personals required
for that project the total cost of the consultants are calculated. In
case of any tie up required from partners of other nations the cost of that is also included. Finally
considering the overheads and profit margin that particular company maintains
are included to arrive at the final quotation cost by the project consultants
Thursday, 8 December 2016
Model-02 : Calculation of ditect Man-Hour
This
page is in continuation to my earlier post Model-01 : Calculation
of ditect Man-Hour .
The
direct manpower calculation and the effort required for erection of different
types of vessels varies based on their location of installation, type of
handling equipment required for the installation of the equipment. Certain
equipments can be erected by manual labour by shifting and placing it on top of
the foundation. ( In India manpower availability is plenty and cheap and in
most of the construction sites direct labourers are more used along with less
amount of lifting equipments like cranes).In this model calculation my
experience in calculating the direct man power was on the basis of using a
truck crane and direct manpower handling
the equipment. I have not elaborated here the type and capacity of the crane to
be used for tower erection. Since selection of a particular type of crane
itself is a vast subject and will be dealt in my other posts. For installation of any vessel apart
selection of a suitable crane for
installation of the equipment, based on the weight and other parameters, an
additional crane from trailing end of
the equipment use to support the equipment to make it vertical.. This manpower
calculation does not include any manpower for operation and supporting
activities of the crane movement
The
man-hour calculation of the estimator should include the time to be spent by
various technicians/Laborers to
complete the activity starting from receiving the materials from stores of the
owner, loading, transportation of materials
from owners stores to contractors storage yard , unloading and storing at contractors
storage at site yard, retransmission to
the point of installation if required ,
surface preparation of foundations along with time required for
fabrication/machining of steel shims to be placed below the equipment installation,
man-hours required for installation work
for accessories or platforms, man-hours required for testing and commissioning,
, Also
major important factor which involves lot of man-hours is the scaffolding
activity. If the equipment to be installed is at lower level or on ground the Man-hours
required for scaffolding will be nil. In case if the installation is at an
elevation the man hours required for preparation and installation of the
scaffoldings are to be considered
The
normal activities involved in the installation of the Tall towers after receipt
of materials at erection sites are preparation of the foundation and bring down
the level of the foundation to receive the equipment on top of it with the
space available for placing the equipment on top of the foundation. Normally
only maximum of 50mm pacer plates are allowed to be placed between the
equipment and foundation so that grouting can be taken can effectively. On
preparation of foundation check for the condition of the equipment placed on
ground on wooden packers. Using the marking on the tower for slings position
the crane as close as possible to lift the equipment.
Tower Installation
The
below mentioned details were calculated in one of chemical plant i worked.
Hence details provided by me are bare minimum and guide lines for the
estimators in indie. The details provided are based on the productivity of the
technicians worked then with me and minor fine tuning as per site data’s of the
company .and in consultation with the companies site personals more accurate
data’s can be decided by estimators
Towers ( considering the erection
procedure with truck crane)
Slno
|
Detail
|
Weight
of equipment up to 10MT
|
Weight
of equipment up to 11-20MT
|
Weight
of equipment up to 21-30MT
|
Weight
of equipment up to 31-40MT
|
Weight
of equipment above 41MT-100MT
|
1
|
Foundation
|
16hours
|
24hours
|
24hours
|
32hours
|
48Hours
|
2
|
Installation
|
16hours
|
24hours
|
32hours
|
40hours
|
80Hours
|
3
|
Total
|
32hours
|
48hours
|
56hours
|
72hours
|
128Hours
|
The
above mentioned man-hours calculation does not include the manpower required
for receiving the materials from stores up to erection site, activities related
to cleaning of equipments, accessory works related with equipment erection work
like platform and ladders erection works for the equipment any major
scaffolding works,time required for preparation of
testing,commissioning,performance guarantee works . The manpower calculation is
on the assumption that the equipment will be installed only on the ground..
Based
on the above chart let me calculate the man hours required for a Tower weighing
80MT and installed at ground floor. As per the chart the time consumed for
installation of this equipment is only 128Man-hours and time required for other
activities can be calculated under respective heads and to be added with the
basic man-hours.
What
should be the cost of this 128 man-hours. It cannot be purely one category like
skilled/highly skilled or semiskilled. It is the combination of the technician
group engaged in the installation work. Based on the nature of work the
category of people are to be divided. in terms of percentages. In this case the
highly skilled labourers may not be required much and unskilled workers also
will not be required much. So technicians who have capacity to lift and shift
the materials may be required more. If we consider total 100% man-hours equals
to 128 Man-hours. Out of which Riggers can be considered as 70%( semi skilled)
requirement,15% requirement of skilled and
remaining 15% manpower will be unskilled to reach total the 100%
Skilled Labours -15%.........!5/100*128 = 19.2 Man-hours
Semi skilled --70%.......70/100*128 = 89.6 Man-hours
Unskilled ...........15%........15/100*128 = 19.2 Man-hours
Cost
of installation of the Tower on basic conditions based on the Man hour rates
(Minimum wages) of notification by Delhi state
Skilled Labours .........(!9.2/8)* 455 = 1092
Semi skilled --- -(50.4/8)*414 =
4636.8
Unskilled Labours..... .(10.8/8)*374 =
897.6
Total
cost of Man-hours for Erection of Tower of 80MT on Ground is Indian rupees 6626.4 at the location near
delhi.
Hence
Rate per MT in that location is Indian
Rupees 82.83
You
can find out that man power cost decreases with respect to weight of the tower
but while we calculate the other cost involvement for installation of the tower
like cost and crane hours and additional indirect man power cost we can arrive
at the exact cost per MT of heavy equipments which falls under this catogory
Project Manger and his respomsibilities
The position of project manager gives lot of pleasure when given the opportunity to handle the entire project as in charge. While start executing the project the problems face by project managers are huge in spite of huge freedom enjoyed by him. Who is a project manager and what are all his responsibilities?, While doing the estimates for quoting certain works the team of business sales persons collect the input data’s from various departments involved in the project to access the amount of expenses the company may have to spend on account of various departments. Based on the inputs the project quote is prepared and with various discussions and clarifications the project is awarded to the winning bidder .Once the bid is awarded to the winning bidder the company is legally responsible with respect to the terms and conditions agreed by the company during discussions with the owner. The owner/clinet inform the winning bidder through a letter/ mail their willingness to accept the company to execute the work for them. This mail is called as letter of acceptance (LOA or LOI in some cases) Based on the LOI the company starts their work. The first step the company does is to nominate a person who will take the responsibility of executing the total work as agreed by his company. This person is named as project manager of the project. Based on the priced quoted by the company the details are handed over to project manager for his review. The input details prepared by the sales department are called as estimates quoted which is already agreed and approved by all the responsible persons. Based on the estimates handed over by the sales the project manager starts his work. He is authorised to change any part of the estimate according to his convenience and flexibility keeping the bottom line of the company in tact. At the end of the day the project manager is totally responsible for the successful execution of the project satisfying the client and keeping the company’s profit in position. The budget prepared by the project manager is called as control budget in many companies. When the project starts the project manager conduct a meeting inviting all department in charges involved in the project along with the nominated sub ordinate by him to assist him in his daily activities while executing the project. His assistant is called as project engineer. He will be helping the project manager in getting the inputs from various departments, correspondence with clients . In normal cases the project engineer will be a junior level person who in turn will be groomed as a future project manger. The meeting conducted by the project manger is named as kick off meeting. Or it can be called as introductory meeting since the company management officially declare the nomination of the project manger to all the team members. Clock start rolling for the project manger..The team members from various departments who will be associated with this particular project and how much duration they will be available for the project. The number of persons anticipated for the project along with the duration is a prefixed data since the details are initially spelt out by them to the sales department while quoting for the project. In case if the project manger wants to have some change in man power he can do it and subsequently the additional cost implication must be offset by him in other. The second step in the execution of the project is introduction of the project manager to the owner/ client and makes them clear that the project manger will be responsible from the executing company’s side for the project. The owner will have a single point responsibility so that all the details/problems are discussed with him and solution for the problems if any are to be solved by him. On introduction of project manger to the owner through sales department of the company they detach from the link and the project manger connect the link. The project manger insists for the contract with the owner/client. The contract document prepared by the owner/ client is viewed and commented by the project manger and describencies if are brought to the knowledge of sales persons and along with the sales persons the matter is persuaded with client and incorporated covering the interest of the company. From that time onwards the project manger co ordinates with different departments and periodical check up of control budget is conducted. If any differences are found conduct meeting with departments and get it corrected. Once the work pick up co ordination for the onsite work also the responsibility of the project manger. A man responsible to take care of the site activities is called as construction manger/ site incharge.The site in charge will be totally stationed at site and will be executing site works and sent reports on daily basis to the project manager. The problems at site while executing the project is total responsibility of the construction manger. However resources to carry out the site work in.a successful way is to be organised by the project manger and it becomes his part of work..Even though site in charge works at site major decisions the owner/client approaches the project manger. With successful co ordination with every one when the project manger complete the project in schedule keeping in tact the profit of the company dealing and solving the issues of the project with clients satisfied opinion emerges out as a successful project manager
Engineering, procurement and construction contract
Out of the different contracts the Engineering procurement and
construction contract (EPC)follows the most common project finance path. In the EPC contract the contractor is
entrusted with the obligation to build and deliver the project facilities on
a turnkey basis. In these type of contract the contract is awarded to a well
established and resourceful contractor who has thorough knowledge about the project
on a lump sum fixed price . The price is based on acceptance of a certain specifications,
and with certain performance warranties. In the EPC contract the completion
date of the project and the effective date of the contract plays very vital
role.Is quite complicated in terms of legal issue, therefore the project
company and the EPC contractor need sufficient experience and knowledge of the
nature of project to avoid their faults and minimize the risks during contract
execution.
The terms EPC contract and turnkey contract are interchangeable.
EPC stands for engineering (design), procurement and construction. In the Turnkey
contract the owner of the project provides some basic agreed facilities and
rest of the remaining works of the projects are to be carried out by the
contractors and hand over the project to the owner in such a way that l it will
need to be done by the owner to do is
turn the key and the facility will function as intended. Alternative forms of
construction contract are a project management approach and alliance
contracting. Basic contents of an EPC contract are:
·
Description of the project
·
Price
·
Payment
·
Completion date
·
Completion guarantee and Liquidated damages:
·
Performance guarantee and LDs
·
Cap under LDs
Decription of the project: Every project is described prior to
fixing of the price of the project cost. In case of Thermal power plant the
capacity of the plant to be produced in terms of MW and how many units, what
are all the major systems to be provided in place . further project description
narrates what is the specification for major equipments ,process guarantees,
time of completion are specified
600 MW Thermal Power Plant
Price on EPC contracts are decided as single lump sum price for
completion of the entire project.. Since EPC contracts are voluminous in nature
with long duration from date of beginning
to date of commercial operation of the project the price is divided as design
and engineering component price,cost for supply of the materials with specified
terms and for civil and site services a separate price.. The price is always
linked with certain important deliveries of equipments and in case of site
services with completion dates of major mile stones.
Payment : Even though price is fixed separately for design and engineering, supply of equipments
,civil and site services the contractor must be provided with free access to
collect the money on completion of certain activities. In order to facilitate
this the payment terms are framed in the contract when the payment must be made
to the contractor and what percentage of money to be released. It is further
discussed among the contractor and owner and billing break up is agreed. Based
on which the contractor gets his money on completion of the obligations
Always the payment done by the owner to the contractor is
safeguarded by an agreed project completion schedule with starting date or
effective date of the contract and completion date of the contract. Theses two
mile stones are most important and all the other intermittent activities can be
adjusted to achieve the final date. The schedule thus prepared is called
project schedule and being followed by every one of the project to achieve the
final date of completion in a successful way.
In the contract agreed between the owner and the contractor it
is very clearly mentioned the liquidated damages not in form of penalty to be
paid by the contractor to the owner in case if the contract is not fulfilled as
agreed. However the penalty is applicable only it is legally proved by the
owner that the obligations mentioned in the contract are not properly carried
out. Normally in power projects the liquidated damages are imposed for the
performance of the equipments supplied by the contractor in terms of heat rate
to be met by the contractor along with auxiliary power consumption. Another type
of liquidated damage is for the delay in completion of the project due to the
fault of the contractors .
There is always a cap agreed and mentioned in the contract for the delay and performance
in terms of money which is prefixed while siging the contract
Homage to honarable chief minister Late sri J.Jayalalitha
This is not experienced by any of us While living, but one day or other Death reaches everyone by any means As if one is sleeping sound with no wakeup Birth is known to everyone as if it is of One who gets up after sleep resumed for? Death and birth both are inter related As they are of black and white Both are destined and destiny is very queer And unknown, how and why we live and die Where is the place to go and exist? Where from we come and how it is Believe death is sweeter as well as of birth On the earth, passion love anger bitterness Happiness cruel and what not all the sense Are compiled one Endless end is death, beginning of life is birth Both are not in our hands, light and sound, air Water and cosmic energy are aiding for both Death and Birth Who knows that this will end like this? He who has created will know How this is happened Why this is ended like this The end result may be positive To one hand The end may be a negative Result to another Both are different, but All are equal and the same To him, He who has created On the earth You and I may be unequal While sailing on boat, but The water level is equal Sailing is not unequal Ultimate result is always towards shore Whether it is of sea whether it is of river Whether it is of lake Wind blows round and round Of a branch of a tree Tree may oscillate at the sides But it will not move on earth When the roots are out of earth Tree lies flat on earth And may be perished into earth May become as a diamond One can dance and sing When he slides down the wind That stops his breath Inactive heart placed me flat Cannot get up and do any action When I stopped breathing I will be buried in to the earth Or flamed to fire, not to come back All are in the hands of almighty He who is creating and making Destructions as per his will And desire Oh god! She is jaya lalitha Has taken her way out Passed way towards high on your Device Give her back to the earth as she has Many to do for this world And we need her for goodness That are you want to fulfil We all waiting for Jay to come back And she will smile on u
Wednesday, 7 December 2016
Goods and Service Tax
What is GST in india. It is the short form of
Goods and service Tax..To day Corporate and individuals pays taxes for the
income they earn .They have to pay for income as income tax. It is a direct
tax. Likewise in India there are many indirect taxes. Mainly it applies when we
go for sale of materials, production of materials etc. There are taxes to be
paid by us for various activities like when we purchase and salesmaterials.. We
have to pay Value Added Tax (VAT) on purchasing goods & services. And there
are Excise duties, Import Duties, Luxury Tax, Central Sales Tax, Service Tax etc. Service Tax is
a form of indirect tax imposed only on services provided. From
the point of view of an ordinary man who does not know anything about tax, providing
services means assistance in any work, taking up of any work on behalf of
others, any professional assignment or rendering intangible benefits to others
is attracted by service tax. Once
the turnover of the assesses crosses a threshold limit of Rs 9 lacks, the
service provider is required to get itself registered under the law, and
compulsorily required to charge service tax on services provided once the
turnover crosses Rs 10 lacks. In normal
circumstances the Service Tax is charged at the time of rendering services.
However, there may be a situation where service tax is charged before rendering
services or after completion of service. The important thing to note here is
the timing of chargeability and the rate of chargeability. Chargeability arises
when services are rendered, while the rate is determined at the time of payment
by service receiver. Suppose when services are rendered, the rate is 10.3% on
such services. However, when the receiver makes payment, the rate is 12.36%.
So, the applicable rate is 12.36.VAT (Value Added Tax is a form
of indirect tax imposed only on goods sold within a particular
state, which essentially means that the buyer and the seller needs to be
in the same state. Only when tangible goods and products are sold, VAT can be
imposed.CST (Central Sales Tax) ) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account
that the buyer and the seller needs to be in two different states. Registration is compulsory for dealers
having turnover exceeding Rs 5 lacks .On registration, such dealer is allotted
a unique 11 digit TIN CST (Central Sales Tax) registration
is not dependent on amount of turnover:As of today some of these taxes
are levied by the Central Government and some are by the State governments.To
streamline all the different types of indirect taxes and implement a “single
taxation” system GST (
GST is the abbreviated form of Goods & Services Tax)is now in place.
The main expectation from this system is to abolish all indirect taxes and only
GST would be levied. As the name suggests, the GST will be levied both on Goods
and Services.GST is a consumption based tax/levy. It is based on the “Destination
principle.” GST is applied on goods and services at the place where
final/actual consumption happens. At present our government has almost
finalised the GST. Now it is in the stages of implementation .Hence state
governments and central Government are discussing about the same. As of now
state governments has got the authority to impose by itself sales tax of
states. Hence the sales tax of a particular same material differs from state to
state. For example if one state impose 15% for refrigerator it varies in other
states since both the states are independent and the sales taxes are their own
descriation.What will be the drawback the states will face when GST is imposed.
Except the sale price of petrol all other material tax amounts are decided by
the central government. It is a setback for the state Governments. Hence
discussions are continuing.Some states demand the assesses whose turnover is
1.5 and less must be under state Government and assesses turnover more than 1.5
crores must be under central government .This will enable the Sales tax
department of the states will have sufficient work load.One more matter which
is discussed between the state government and central government regarding GST
is while deciding certain matters regarding GST all the states are given equal
amount of voting rights. But some states opposes this and want a change in
voting procedure that the percentages must be decided based on the area and
population of the states. Even though the discussions are on the final
conclusion on the procedure of imposing GST tax has not yet been finalised.
Still talks are on between state and central government. When both state and
central government reaches conclusion no doubt GST will be great boon for
Indians and sure int will improve the economical situation of India
Tuesday, 6 December 2016
Financial closure
The financial closure of the
project is an arrangement to be done by the owner of the project before start of
the project and to meet the financial requirements of the project from the
beginning until commissioning and start of production of the project. Normally
the project takes off its full momentum on completion of the financial closure
since parties involved in executing the projects are secured of their money for
the responsibility entrusted to them. .Project
finance is the long-term of finance
of infrastructure and
industrial projects based upon the projected cash flows of the project rather
than the balance sheets of its sponsors. Usually, a project financing structure
involves a number equity investors and group of investing banks or other lending institutions that
provide loans to the operation of the project..Commonly while the bankers and
lending institutions provides the loan the borrower cannot be heldresponsible for any amount in excess of the
security for the loan, even if the value of such
security falls below the level it had been anticipated for it at the time of the allotment
of loan ,
which are secured by
the project assets and paid entirely from project cash flow, rather than from
the general assets or credit
worthiness
of the project sponsors, a decision in part supported by financial modeling The
financing is typically secured by all of the project assets, including the
revenue-producing contracts. Project lenders are given legal claim of theproperty to secure the payment
of a debt or the satisfaction of an obligation on all of these assets and
are able to assume control of a project if the project company has difficulties
complying with the loan terms.
Generally, a special purpose entity is created for each project, thereby protecting
other assets owned by a project owner from the damaging effects of a project
failure. As a special purpose entity, the project company has no assets
other than the project. In order to satisfy the lending companies or lending
banks it becomes most important from the owner for their Capital contribution to show that their
company is financially sound and capable to take up the project. In general
project financing has been most commonly used in the, transportation, telecommunications industries as well as sports
The most important component of the project
finance is to analyses the elements of risk involved in the project. A project may be
subject to a number of technical, environmental, economic and political risks.
Particularly in developing countries and emerging
markets the elements of risks are high "Several long-term contracts
such as used to align incentives and deter opportunistic behaviour by any party
involved in the project. The
patterns of implementation are sometimes referred to as "project delivery methods .Further the risks
cannot be born only by owner can be distributed among number of parties
involved in the project along with sharing the profit of the project with
parties taking part in the project by sharing it with construction, supply, off-take and concession
agreements, along with a variety of joint-ownership structures. There are several parties in a project financing
depending on the type and the scale of a project. The most usual parties to a
project financing are;
1. Sponsor (owner of the project)
2. Lending institutions and
banks lending loans
3. Financial Advisors
4. Technical Advisors
5. Legal Advisors
6. Debt Financiers
7. Equity Investors
8. Regulatory Agencies
9. Multilateral Agencies
The lending institutions and financing Banks do not hand over
the entire finance of the project in a single stage. The finance required for
the project is released on stages so that the project progresses in proper way
and can be finished on schedule.
A
riskier or more expensive project may require limited
recourse financing secured by
a surety from sponsors. Limited recourse
lending was used to finance maritime voyages in ancient Greece and Rome.
Its use in infrastructure projects dates to the development of the Panama
Canal, and was widespread in the US oil and gas industry during the early
20th century. However, project finance for
high-risk infrastructure schemes originated with the development of the North Sea oil
fields in the 1970s and 1980s. Such projects were previously accomplished
through utility or government bond issuances, or other traditional corporate
finance structures.
The new project finance structures emerged primarily in response
to the opportunity presented by long term power purchase contracts available
from utilities and government entities. These long term revenue streams were
required by rules implementing PURPA, the Policy resulted in further
deregulation of electric generation and, significantly, international privatization
following amendments to the Public Utilities Holding Company Act in 1994. The
structure has evolved and forms the basis for energy and other projects
throughout the world.
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