Kotappakonda Aerial Ropeway Project”

Project Report on Development of “Kotappakonda Aerial Ropeway Project”

KOTAPPAKONDA AERIAL ROPEWAY PROJECT Volume II- Project Information Memorandum Department of Tourism, Government of Andhra Pradesh

2015

TABLE OF CONTENTS ...... 2 1. INTRODUCTION ...... 3

1.1. OBJECTIVE OF THIS PROJECT REPORT ...... 3 1.2. EXECUTIVE SUMMARY ...... 3 1.3. PROJECT DETAILS...... 4 2. PROJECT DETAILS ...... 7

2.1. PROJECT BACKGROUND ...... 7 2.2. LOCATION AND DEMOGRAPHIC DETAILS OF THE REGION ...... 9 2.3. PROJECT SITE ...... 11 2.4. PROJECT NEED ...... 12 2.5. STAKEHOLDER ANALYSIS ...... 12 3. PROJECT DESIGN ...... 13

3.1. DESIGN CONSIDERATIONS AND ASSUMPTIONS ...... 13 3.2. DESIGN OPTIONS ...... 14 3.3. PROPOSED DESIGN/ TECHNOLOGY ...... 15 3.4. DETAILED COMPONENTS ...... 17 3.5. MINIMUM DEVELOPMENT OBLIGATIONS ...... 23 3.6. MINIMUM SERVICE OBLIGATIONS ...... 25 4. PROJECT FINANCIALS ...... 26

4.1. METHODOLOGY ...... 26 4.2. DEMAND ESTIMATION ...... 26 4.3. PROJECT COST BREAKUP ...... 28 4.4. REVENUE ASSUMPTIONS ...... 29 4.5. OPERATING ASSUMPTIONS ...... 29 4.6. PROJECT FEASIBILITY ...... 29 5. ANNEXURE ...... 30

5.1. REVENUE COMPUTATIONS...... 30 5.2. INDICATIVE P&L STATEMENT ...... 32 5.3. PROJECT PROFITABILITY COMPUTATION ...... 33

1.1. OBJECTIVE OF THIS PROJECT REPORT

The Department of Tourism, Government of Andhra Pradesh, proposes to develop an aerial ropeway on Kotappakonda Hill, on Public Private Partnership (PPP) basis. The site of the project, Kotappakonda temple on Kotappakonda Hill, is situated in Guntur district, in the State of Andhra Pradesh. Approximately 5,000 tourists and pilgrims visit the holy site each day, and approximately one lakh per day during the festival of Mahashivratri (in February-March). Since the temple is difficult to access via the stairs, especially for differently abled, infirm and aged visitors, an aerial ropeway to facilitate access to the temple, to be setup on a public private partnership basis has been proposed. In addition to facilitating ease of access, the ropeway would also promote the destination for religious tourism, and enable integrated development of the project site, in line with the overall tourism developmental vision of the Government of Andhra Pradesh. This project report has been prepared to analyze the techno-commercial feasibility of the aerial ropeway and provide an overview of the investment opportunity in this project.

1.2. EXECUTIVE SUMMARY

1.2.1. PROJECT SYNOPSIS

The project proposed is installation, commissioning and operations of an aerial ropeway in Kotappakonda. Kotappakonda is situated in the Guntur District of Andhra Pradesh and is famous for its Shiv temple. The temple receives close to 5,000 pilgrims daily with the numbers doubling or even trebling

in the month of November. The peak season for tourist footfall is the Mahashivratri week when more than 2 lac pilgrims visit the temple. 3

The Government is now focusing on leveraging this high tourist footfall to develop additional attractions in and around the area. The Aerial Ropeway is one such attraction which would not just make the access to the temple easier, but also act as a local tourist attraction.

1.3. PROJECT DETAILS

1.3.1. PROJECT SITE

The main project components which require land are provided below. 1. Lower Terminal Station 2. Upper Terminal Station 3. Towers The lower terminal station is proposed to be located at the entrance to the Ganpathi temple. The Revenue Department has already allotted Ac.1.00Cents Land in Survey.No. 290 of the village Kondakavaru. For the upper station, the land will be provided by the Endowments Department for an extent of Ac.0.60 Cents near the Nandini guesthouse. Details for land site are provided in subsequent sections. FIGURE: SITE LAYOUT

Upper terminal

Lower terminal

The land for the lower terminal, upper terminal and towers shall be provided by the Government of AP for a period of 20 years on lease, subject to the Public Private Partnership guidelines of the State of Andhra Pradesh.

1.3.2. PROJECT TECHNOLOGY

The bare minimum design of the ropeway system that has been assumed for the purposes of this project is a pulsating jigback (fixed) installation. However, given the seasonality of the demand at Kotappakonda, the financial feasibility has been undertaken assuming a monocable jigback system with detachable gondolas. The project developer, based on his cost and demand analysis, may choose to propose a more technically feasible aerial ropeway technology as well if he so chooses, provided it be technologically superior to a pulsating jigback (fixed) installation. The reasons for selection of the Monocable Jigback System (Fixed) as a minimum design system is elaborated in subsequent sections.

1.3.3. PROJECT COST

The total civil works estimates with the estimated components and prepared conceptual layout amounts to INR 3.73 cr. The Plant and Machinery estimates for a monocable jigback system amount to approximately INR 6 cr. The indicative cost heads are as follows: Cost Head Amount (INR) Civil Works (Upper and Lower stations) 37,373,372.36 Plant & Machinery (Upper/Lower stations & Towers) 60,000,000 Total Project Cost 97,373,372.36

1.3.4. PROJECT MEANS OF FINANCE

The Project is assumed to be financed by 100% promoter funding, with no funding from commercial banks envisaged.

1.3.5. KEY PROJECT APPROVALS & REGULATORY FRAMEWORK

An indicative list of the key project approvals and clearances is provide in the table below. The same are detailed in subsequent sections of this report.

S.No. Description of Applicable Standards Remarks Parameter

1. Development Controls Andhra Pradesh Building Any other applicable and regulations Rules – 2012 issued vide regulations/stipulations, of any G.O. Ms. No. 168 by other statutory authorities MA&UD, Dt. 07.04.2012 applicable in the Local Body. and amendments thereon

from time to time and

S.No. Description of Applicable Standards Remarks Parameter

National Building Code (NBC).

2. Spatial planning and Urban Development Plans Any other applicable architectural design Formulation & regulations/stipulations, of any guidelines Implementation guidelines other statutory authorities. (UDPFI) and Time Saver Standards.

3. Facilities for Persons Persons with Disabilities Any other applicable with Different Abilities Act, 1995 with subsequent regulations/stipulations, of any (Differently Abled amendments and ‘UN other statutory authorities. Persons) Convention for Rights of Persons with Disabilities (UNCRPD).

4. All Pavements, Roads Indian Road Congress (IRC) Any other applicable and Signage & Ministry of Road regulations/stipulations, of any Transport and Highways other statutory authorities. (MORTH) specifications.

5. Building construction National Building Council Any other applicable including structures, (NBC) regulations. regulations/stipulations, of any utilities, infrastructure other statutory authorities. facilities, etc.

6. Fire Protection and National Fire Protection Any other applicable Detection Services. Authority (NFPA) regulations/stipulations, of any regulations. other statutory authorities.

7. Performance Standards ISO 9001: 2008 Any other applicable regulations/stipulations, of any other statutory authorities.

1.3.6. PROJECT RECOMMENDATION

The overall installation cost of the aerial ropeway system has been estimated at INR 9.73 crores with approximate monthly operations expenditure of INR 20 lacs per month. The demand estimations have been done based on the actual footfall numbers shared by the local district officials of Government of Andhra Pradesh.

Considering a user charge of INR 50 one way, it is estimated that the project will have an IRR of 19.6 % and a NPV of INR 69.40 mn across the lease period. 6

2.1. PROJECT BACKGROUND

2.1.1. BACKGROUND

Kotappakonda, also the temple known as the earthly abode of Lord Shiva, is situated in Guntur District of Andhra Pradesh. It is believed that the temple was built prior to 1172 A.D. in the Trikoota Hills in Guntur District. Given its age old reverence and the importance of the temple in the local folklore, the temple receives large number of visitors on a daily basis. There are two main ways to access the temple. One is via a road access built to the temple and the other is via foot, the latter being the more popular one. An aerial ropeway was proposed on a public private partnership basis to facilitate access to the temple apart from developing it as a tourist attraction or activity. A detailed overview of the current state of the project is provided below.

2.1.2. CURRENT STATE

The temple is located in the Trikoota Hills of Kotappakonda, previously known as Kondakavuru. The hills are named after the Hindu God Trilogy, Brahma, Vishnu and Maheswara, host the temple. The deity established in the shape of a Sivalinga at the hill top is known as Trikoteswara. The deity is located at a height of approximately 1,587 feet.

There are two modes of access to the temple. A “ghat” road for vehicular traffic leading up to the temple, with sufficient parking space at the temple site is present. The road is approximately 30 ft. wide, with two lanes for traffic. This road has been constructed to ease the climbing and allow the pilgrims take in and enjoy nature's bounty in its full splendor, in place of an arduous climb up the steep steps and also to accommodate the growing number of visitors. The entire stretch of the road is lighted and a deer park has been developed on the way.

The second mode of access are a thousand steps to the temple, which are steep and difficult to navigate. Since these three modes are insufficient to cater to the growing number of visitors, a third option of an aerial ropeway has been proposed. Apart from ease of access and enhanced capacity, the aerial ropeway will also catalyze tourist growth and promote Kotappakonda temple as a tourism destination. The development of the area is being done in an expedited manner to focus on entertainment, devotion and spiritual aspects of a tourist. Some of the current features of the area and temple region are as follows: a) View Point: A View Point has been created on the corner of the hill to provide a breathtaking overall view of the surroundings

b) Lakes and Ponds: There are multiple lakes and ponds in the region, most notable of which are the 8 ponds situated right in front of the temple. Additionally, a small lake has been created on the hill, depicting the statue of Lord Krishna with special lighting effects in the middle of the lake. Water flows into the lake from various watershed programs developed at many places on the hill, a blend of modernity with the past c) Deer Park: The road stretch to the temple is an all-weather, well-lit road. Alongside the road, a deer park has been developed as an attraction for the visitors d) Jurassic Park: Another attraction for the tourists is the artificial Jurassic Park with mobile dinosaurs of monstrous size e) Accommodation: The area has four our VIP guest houses and a 30-room resting house for the visitors f) Meditation Centre: An integrated tourist project is the meditation center, built on the top of the hill and an exclusive "Yaga Shala" for conducting 'homam' (holy fire) with a sprawling dining hall g) Proposed Museum: A museum has been proposed to house the artefacts that were discovered in the excavations in and around the area.

2.2. LOCATION AND DEMOGRAPHIC DETAILS OF THE REGION

2.2.1. DISTRICT INFORMATION

Kotappakonda Hill, on which the temple is situated is located in Guntur District of Andhra Pradesh. Guntur District is located along the east coast of Bay of Bengal. Guntur City is the largest city in the district and the administrative center of Guntur District. The district is a major center for learning and Telugu and Urdu are the main languages spoken here. The geographical co-ordinates of Guntur District are 16.20°N 80.27°E. It has an average elevation of 33 metres (108 ft) and the topography comprises mainly of plains. There are a few hills in the surrounding suburban areas. Guntur city is located around 40 miles (64 km) to the west of the Bay of Bengal. The Krishna Delta lies partly in Guntur district. There are other smaller rivers and channels in the region such as Guntur Channel, Chandravanka, Naagileru, Guntur Branch Canal etc.

Some key statistics of the district are:

Area: 11391 Sq. km. Population: ~44 lacs Urban:Rural::1:2.5

Urbanization: 28.90% Major Sectors: Agriculture & allied activities

2.2.2. PROXIMITY INFORMATION

Guntur has always been a major location in Andhra Pradesh but more so in the divided State as the proposed new capital of the State is in Guntur. This gives the district the strategic advantage of focus and prioritization in all Government Schemes especially w.r.t. infrastructure development. Guntur has always been well connected to the State and to other parts of the country. a) Road Network: Guntur is well connected to all major cities of the country through National and State Highways. NH5 that runs from Kolkata to Chennai, passing through Guntur city is a part of AH 45 which comes under the Asian Highway Network. The Hyderabad – Nalgonda- Guntur is a State highway connecting Hyderabad with Guntur city. It passes through Nagarjuna Sagar, a famous tourism destination. Regarding Kotappakonda, the nearest town located close to the proposed project site location, is Narasaraopet. It is about 50 Kms from Guntur City, 90 Kms from Vijaywada and 350 Kms from Hyderabad. b) Rail Network: Narasaraopet is well connected from Guntur by train as well with multiple trains throughout the day. It is a two hour train ride from Vijayawada. c) Air Network: Visitors can also fly to Vijaywada Airport and from there leave for Narasaraopet using road or rail networks.

2.2.3. DEMOGRAPHIC AND OTHER INFORMATION

The district covers an area of 11,391 Sq.km, comprising of a population which is predominantly rural. The Krishna River forms the northeastern and eastern boundary of the district, separating Guntur District from Krishna District. The district is bounded on the southeast by the Bay of Bengal, on the south by Prakasam District, on the west by Mahbubnagar District, and on the northwest by Nalgonda District. Administratively, it is divided into 57 mandals. a) Social Information Guntur has a total population of 44 lacs with almost equal sex ratio (22 lac males for 21.85 lac females). The region is primarily rural given that Agriculture and allied activities are the largest employer and the largest contributor to the District’s local economy. Nearly 48% of the total population constitutes of workers of which nearly 73% work in Agriculture and allied activities. b) Economic Information Guntur is a center of learning and the administrative capital of Guntur district, which is home of historically significant Amaravati, Bhattiprolu and Sitanagaram monuments. The city is also

a center for business, industry, and agriculture. The region is identified as a major transportation and textile hub in India. Additionally, the Guntur area economy has an 10

agricultural component that is internationally known for its exports of chillies, cotton, and Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode tobacco. The district’s economy has been growing steadily and was at INR 41,000 crores in 2012-13 with a per-capital income of INR 79267, both at current prices. The district is next only to Vishakhapatnam and Chitoor in terms of large and mega investments. During 2013-14 alone, 6 such projects were approved with an estimated investment outlay of INR 190 crores. c) Climate Guntur experiences primarily a hot season throughout the year, summer being extremely warm. December till February is a dry and cool winter season. March to May is the warm summer season, and June to September being the months when the South-West monsoon approaches. October till November is the post monsoon or retreating monsoon season. Storms and depression, originating in the Bay of Bengal, cross the east coast of the district causing wide spread heavy rain and strong winds. Thunder-storms occur during March- October, being more frequent in the post-monsoon season.

2.3. PROJECT SITE

Kotappakonda is a major religious destination in not just Guntur but also in Andhra Pradesh.

2.4. PROJECT NEED

The holy temple is the focal point for pilgrims across the State and neighboring States, who wish to pay homage to Lord Shiva at the temple. Approximately 3,000-5,000 tourists and pilgrims visit the holy site each day, and approximately one lakh during Mahashivratri. Since the temple is difficult to access via the stairs, especially for differently abled, infirm and aged visitors, the Department of Tourism proposed an aerial ropeway to facilitate access to the temple, to be setup on a public private partnership basis. In addition to facilitating ease of access, the ropeway would also promote the destination for religious tourism, and enable integrated development of the project site.

2.5. STAKEHOLDER ANALYSIS

The entire lifecycle of the project will have many interacting stakeholders whose needs/ requirements/ concerns would need to be addressed. Some of these stakeholders are: a) Endowments Department/ Temple Staff: The various people working to make the temple and the surrounding area functional including stakeholders from Endowments Department of GoAP would be constant partners in this journey. Given their hands on experience of the temple, the entire project planning exercise would have a representation from them as well so that their knowledge and concerns can be taken into consideration right from project initiation b) Tourists: The biggest beneficiaries of the project will be the tourists/ pilgrims coming to the temple. An appropriate balance would need to be struck between user charges and technology used so that while the aerial ropeway rides are feasible, there should be no compromises on safety as well c) GoI Entities: Government of India has released guidelines for implementation of aerial ropeway projects and those would have to be kept in consideration during detailed designing and implementation of the project. These include the guidelines issued by Bureau of Indian Standards (BIS) and Ministry of Environment and Forests (MoEF), Government of India d) Tourism Department: Last but not the least, the project shall be owned by the Tourism Department of Andhra Pradesh with respect to State and Department level project approvals, project review, selection of implementation agency and ensuring overall success of the initiative.

According to the technical definition of the Indian Bureau of Technical Standards, an “aerial ropeway is a special form of transportation system where passengers/materials are carried above the ground. A ropeway uses a tensioned wire rope supported above the ground. Aerial ropeways are particularly useful in regions where the facility in surmounting natural barriers gives them a great advantage over railways or roads, both of which may need the heavy civil engineering work to secure easy gradient. They are inexpensive to maintain; pollution free; environment friendly; requires minimum tree cutting; does not affect aesthetics; their power demand is modest; and, they are not seriously affected by adverse climatic conditions”.

3.1. DESIGN CONSIDERATIONS AND ASSUMPTIONS

The design requirements/ principles which have been kept in consideration while designing the project. These include: a) Design of the Aerial Ropeway shall be strictly in line with the guidelines issued by Bureau of Indian Standards, MoEF (GoI) and any other guidelines issues by Central/ State Government b) The structure and the overall system should be built considering the climate in the region c) An appropriate balance needs to be maintained in the cost of the ropeway system selected and the ability to carry maximum tourists. It needs to be borne in mind that Kotapakonda is primarily a religious destination d) The numbers considered for design evaluation are approximate and based on on-ground information provided by GoAP officials.  It has been estimated that every day an estimated 5,000 tourists visit the temple every day, except Tuesday and Wednesdays when the numbers reduce to 1,000 tourists only  Mahashivratri is the biggest festival in the region and the numbers during this time increase to approximately 50,000 tourists per day for 3 days preceding the day of festivals, about 1,00,000 tourists on the day of the festival and about 50,000 the day after the festival. This is a once in a year event.  Similarly, November is an auspicious month for the temple visitors and the number of tourists per day in November can go upto 10,000.  It has been assumed that of the total number of tourists coming to Kotappakonda temple, only about 30% would opt for the aerial ropeway to reach the temple or come

back from the temple or both.

3.2. DESIGN OPTIONS

The first aerial tram was built more than 350 years ago but this method of moving people and goods popular in 1800s only. Since then, many systems of aerial ropeways have been implemented based on the project’s needs and salient features. These include cost factors, terrain, carrying capacity, rate of transfer and climatic conditions. In the case of Kotappakonda, there are three ropeway systems which will best suit the requirements. These include: A. Monocable ropeway system B. Bicable & Tricable ropeway systems C. Jigback system (Monocable) These ropeway systems are analyzed in detail below. A. MONOCABLE ROPEWAY SYSTEMS A Monocable ropeway System comprises basically of a rope which acts both as the carrying as well as the haulage rope to which a number of vehicles (carriages) are attached at regular intervals. These vehicles circulate around the closed system by continuous carrying-cum- haulage rope. The vehicles can be in the form of chairs or gondolas (enclosed carriers, also referred colloquially as cabins). Usually the carrying capacity of each vehicle varies from 2 passengers to 8 passengers. Monocable can be either fixed grip or detachable grip. Fixed grip installations are the types of ropeways whose grip is permanently fixed and tight on the rope and is not taken off the rope in the station. Detachable installations are characterized by the possibility of detaching the vehicles in the stations from the rope. This enables a higher speed on the line, a lower speed in the station and makes the boarding and de-boarding more comfortable for the passengers. According to this, a significantly higher transport capacity as well as more comfort for the passenger can be achieved. Fixed grip installations are more inexpensive to install than detachable grip installations. Capital Costs Operating Costs Carrying Capacity Overall Suitability

B. TRI - BICABLE ROPEWAY SYSTEMS This Ropeway System consists of two/three stationary carrying track ropes with connecting rails and a single endless haulage rope. The support cables are terminated at the two end terminals with one end provided with a counter weight / hydraulic tension unit for extension/contraction. A number of carriages are automatically coupled to or uncoupled from

the haulage rope at the station and are transported on the rails for boarding/de-boarding of 14 passengers. Multiple cable solutions offer differentiating advantages from a technical

Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode perspective. They guarantee increased wind resistance and are also able to cross spans of over 2,500 meters. This makes for a perfect application over steep and exposed terrain. Tricable gondola lifts have one hauling cable and two support cables. In both systems, grips are detachable, meaning that the systems have a very high transport capacity. This system has high transport capacity up to 6,000 people/h (cabins can carry upto 35 people) with speeds upto 8 m/s Capital Costs Operating Costs Carrying Capacity Overall Suitability

C. JIGBACK SYSTEM (MONOCABLE) It is possible to combine the characteristics of a Monocable system and a Jig Back System. Such a system has a carrying-cum-haulage rope to which one or a group of cabins are attached in either direction, attachment being made on diametrically opposite side of the carrying- cum-haulage rope. In addition, both of these sub-categories individually can be either be “normal systems”, or “pulsating systems”. In normal systems the vehicles (cabins) travel and enter the station evenly, while in pulsating systems a group of vehicles travels and enters/exits the terminal station for passenger embarking/disembarking. Pulsed configurations are mainly employed for relatively short ropeways. The Jigback system is simple to operate and less expensive, and is ideally suitable for hilly, undulating terrain. The capital expenditure investment in this system is also relatively low, and is comfortable for the passengers to embark/disembark and ride. The carrying capacity can also be augmented based on increase in demand. This system has relatively less carrying capacity than the other system categories. Transport capacity upto 100 - 500 PPH depending on the route & length. Capital Costs Operating Costs Carrying Capacity Overall Suitability

3.3. PROPOSED DESIGN/ TECHNOLOGY

The selection of appropriate ropeway system for the project depends on the following factors: i. Carrying capacity for which the ropeway system needs to be designed ii. The topography of the project site iii. Investment and operating cost required iv. Comfort factors for the passenger

v. Speed of cabins

Taking into account all these factors, the Jigback Monocable (Fixed) is the minimum system for the proposed ropeway. The summary of cabin movement is as follows: The carrying cum haulage rope, which will support as well as move the cabins along the ropeway, is attached to two terminals, known as the Upper terminal and Lower terminal. The ropeway is supported by towers along the way. The group of cabins of 6 passengers’ capacity each will be attached to at opposite ends of the ropeway. The passengers will embark/disembark when the cabins are stationary at the terminals. After the loading/unloading of passengers, the station manager will give the green signal and the cabins will move out of the station and obtain the desired speed. While approaching the opposite terminal, the “Drive” is slowed down, and the cabins halt at the terminal station. After loading/unloading, the drive is reversed. While one group of cabins goes up, the second group comes down in the same manner. The system is designed keeping in mind the safety parameters as laid down in Indian standards. Pulsating Jigback Monocable (Detachable) was also evaluated and best meets the balance of techno-commercial feasibility. The advantages of this ropeway system are as follows: i. This system is designed for a lower range of carrying capacity, and is suitable for carrying 400 passengers/ hour (demand capacity envisaged for Kotappakonda temple) ii. The proposed project region does not have extreme weather conditions such as high wind factors, excessive rain etc. which makes this system suitable. iii. The investment in this project system at approximately INR. 9.73 cr. is relatively lower than other systems, and is justified by the return on investment and project IRR. In Monocable Jigback System (detachable) system, the station’s gondola structure will include an area where each cabin will be detached from the ropeway; decelerated to a speed slow enough for boarding and disembarking; and then accelerated, allowing for the reattachment. Therefore, disembarking and boarding will take place in separate locations on the platform. Similarly, at intermediate angle stations, each gondola will detach from one cable and subsequently attaches to another cable that is aligned in a different direction.

Developer, as part of the proposal, may choose to propose one of the above ropeway systems

or may propose a better ropeway system (like bi cable or tri cable) based on their own 16 assessments.

3.4. DETAILED COMPONENTS

The Pulsating Jigback Monocable is one of the most popular aerial ropeway systems worldwide for transporting passengers. It consists of various sub-components including, but not limited to, the following: A. Cabins Cabins are the structural and mechanical assemblage in which the passenger(s) of a ropeway system are transported. The cabin includes the carriage/ grip, hanger, and the passenger cabin. The cabin will consist medium cabins which can seat 6-8 people. The cabins will be totally enclosed and have a standing room to reach full capacity.

B. Terminals/ Stations The system will have two terminals: Upper and Lower terminals. The drive machinery may be installed overhead or in an underground vault, based on developer’s design and land allocated at upper and lower terminals at the project site.

Lower Terminal Station SITE LOCATION OF LOWER STATION

The station at the base of Kotappakonda Hill will be the lower terminal station. The land site is adjoining a pond, and comprises of a few trees and shrubbery. The survey layout of the lower terminal station is provided in the figure above. For the Lower station, Sy.No. 290 of the village Kondakavaru of Narasaraopet Mandal has been identified. It is to be noted that the Tourism Department of Government of Andhra Pradesh is in the process of receiving possession of/ permission to undertake project construction in the land for lower terminal, right of way and upper terminal. This report has been prepared based on the assumption that the process shall be completed successfully. For preparing the site at the lower station, an indicative list of bill of quantities for civil works has been provided below:

S. No Description Units Quantity Rate (INR) Amount (INR) Jungle clearance and up routing of the Light jungle and burnt in to ashes as directed by the Engineer 1 Sft 43632.00 2.00 87264.00 - In - Charge including cost and conveyance of all materials and Labour charges etc. complete Provision for Deck with all 2 Sft 3499.20 2000.00 6998400.00 provisions

3 Providing Ticket counter Sft 32.40 1750.00 56700.00

4 Provision for Information Deck Sft 43.20 1750.00 75600.00 18

S. No Description Units Quantity Rate (INR) Amount (INR)

5 Providing for WorkShop Sft 874.80 1750.00 1530900.00

6 Provision for Store Room Sft 307.27 1750.00 537727.68

7 Provision for Spare Room Sft 124.26 1750.00 217463.40

8 Provision for Waiting Lobby Sft 440.32 1750.00 770553.00

9 Provision for Security Check Sft 186.62 1750.00 326592.00

10 Provision for Coffee Shop Sft 1555.20 1750.00 2721600.00

11 Provision for Toilet Sft 486.00 1000.00 486000.00

12 Provision for landscaping LS 1000000.00

13 Provision for Seating arrangement LS 375000.00

Provision for children’s play 14 LS 1000000.00 equipment

15 Provision for Compound wall Rm 271.27 6500.00 1763268.00

16 Outside yard development LS 3000000.00

Sub Total 20947068.08

Upper Terminal Station SITE LOCATION OF UPPER STATION AT KOTAPPAKONDA TEMPLE

For the upper station, the land will be provided by the Endowments Department for an extent of Ac.0.60 Cents For preparing the site at the lower station, the indicative list of bill of quantities for civil works has been provided below: Rate Amount S.No Description Units Quantity (INR) (INR) Jungle clearance and up routing of the heavy jungle and burnt in to ashes as directed by the Engineer - In - Charge 1 Sft 2700.00 70.00 189000.00 including cost and conveyance of all materials and Labour charges etc. complete Removing the Hard Rock cutting using with Mechanical meanse as directed by the Engineer - In - Charge including cost 2 Cum 506.25 500.00 253125.00 and conveyance of all materials and Labour charges and the burning chemicals tec. Complete Provision of RCC Retaining wall with RCC (1:3:6) nominal mix proportion with cement coping at the top and provision 3 Cum 150.00 6000.00 900000.00 of weep holes for the dissipation of the energy including all labour charges etc. complete Filling with Suitable soils in between the Retaining walls and compacting the soils with 95% of relative density in layers not 4 less than 150 mm thick layers with 8 to Cum 800.00 650.00 520000.00 10 tons power roller including cost & conveyance of all labour and material charges etc.

Rate Amount S.No Description Units Quantity (INR) (INR) Supply and placing of the Design Mix Concrete M 20 grade corresponding to IS 456 with minimum cement content of 380 kgs per 1 cum of concrete and required quantity of Chemical Admixtures per 1 cum of concrete using batching and mixing plant of 15cum to 20cum capacity per hour with 20mm size graded machine crushed hard granite metal (coarse aggregate) ( consisting of nominal size metal 60% of 20mm , 15% of 13.20/12.50mm , 15% of 10mm and 10% of 6mm ) from approved quarry including cost and conveyance of all materials like 5 cement, fine aggregate (sand) coarse Cum 50.25 8350.00 419587.50 aggregate, water etc., to site and including Seigniorage charges, sales & other taxes on all materials , centering , shuttering, scaffolding with props and steel plate as per the approved shuttering plan and other accessories as per the norms and stability calculations including hire, operational & crew charges of batching and mixing plant & transit mixer, laying concrete, curing etc., and overheads & contractors profit complete but excluding cost of steel and its fabrication charges for finished item of work for Grade slab Supplying, fitting and placing HYSD (Fe 500/ tmt grade as per IS 1786-1985) bar reinforcement in foundation complete as per drawings and technical specifications for Bars below 36 mm dia including over laps and wastage, where they are not welded including cost and conveyance of 6 MT 10.05 46000.00 462300.00 bars from approved sources to site of work, binding wire, cover blocks and all incidental, operational, labour charges such as cutting, bending, placing in position, tying etc., and sales & other taxes, on cost of all materials complete

for finished item of work 21

Rate Amount S.No Description Units Quantity (INR) (INR)

7 Provision for Deck Sft 3499.20 500.00 1749600.00

8 Provision for Ticket counter Sft 32.40 1750.00 56700.00

9 Provision for Information Deck Sft 43.20 1750.00 75600.00

10 Provision for landscaping LS 400000.00

11 Provision for Seating arrangement LS 75000.00

Provision for Shed with Corrugated GI 12 Sft 2700.00 950.00 2565000.00 sheets with all necessary provisions Provision for substructure to with stand 13 Cum 168.75 10500.00 1771875.00 heavy towers (approx 3 towers)

Sub Total 9437787.50

The overview of the total civil works cost is provided below: Cost Head Amount Total of Civil Work for Lower Station 20947068.08 Total of Civil Work for Upper Station 9437787.50 Civil Work Cost 30384855.58 Departmental Sattuary provisions 6380819.67 (21% of the Estimated cost) Provisoin for unforeseen items of the work @ 2% 607697.11 Total Civil Work Cost 37373372.36 C. Towers Towers are intermediate structures that support the track and haulage ropes between terminals. They are often steel framed, and are sometimes pylon- shaped. The tower’s primary function is to support track ropes and haulage ropes on saddles and line sheaves respectively. Towers must also have guides to keep carriages from hitting them for safety. Towers might not always be necessary depending on the length of the system. For long systems,

intermediate towers are necessary to provide support to the system and therefore

Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode eliminating the need for long spans. A minimum of two towers will be required for the aerial ropeway. D. Ropes/ Cables The rope (cable) is the heart of any Aerial Ropeway Transit system. It is formed by inter- twining individual wires to form a strand and then the strands to form a rope. There are many variations of the processes used in manufacturing ropes and in choosing the appropriate rope for any given application. E. Plant and Machinery The minimum components of the Plant and Machinery will be a main drive, an auxiliary drive, main gear box, tension trolley, counter-weight trolley, grip system, etc. The developer needs to ensure adherence to the minimum service obligations. T

3.5. MINIMUM DEVELOPMENT OBLIGATIONS

The developer shall construct, operate, maintain and manage the proposed facility strictly conforming to the relevant Indian Standards; the best industry practices acceptable norms as laid by Ministry of Tourism, GoI as well as the minimum service obligations. These development obligations are defined below. 1. Site Development Guidelines

i. The internal paving may be done using recycling waste/ eco-friendly materials that helps the environment. 2. Civil, Structural & Environmental Requirements

i. The structures shall be designed to resist wind and seismic forces. ii. RCC structures shall be designed as per IS 456: 2000. iii. Steel structures shall be designed in accordance with the provisions of IS 800:1984. Structural steel shall conform to IS 2062:2006. Tubular sections would conform to IS- 4923. Structural joints shall conform to IS 4000:1992. iv. Mitigation measures to be considered to reduce the negative impact on the ecology, available resources on site, soil erosion, existing vegetation and habitat, water and air pollution and waste handling as per the Manual on norms and standards for environment clearance of large construction projects. v. Developer is advised to carry out its own tests and investigations related to soil condition, strata, bearing capacity and other characteristics. vi. All buildings shall be designed and constructed as earthquake and flood resistant structures. 3. Services: Electrical, Water Supply, Plumbing, Drainage and Solid Waste Management

i. The planning, design and execution of electrical installation, ventilation, air- conditioning, shall be carried out in accordance with Part VIII-Building Services (Section 23

2-Electric Installations, Section 3-Air Conditioning) of National Building Code of India Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode

prepared by BIS and as prevalent at the time of execution of the works, as the case may be. ii. The planning, design, construction and installation of water supply distribution system, drainage and sanitation shall be in accordance with the Part IX (Section 1-Plumbing Services, Section 2-Plumbing and Sanitation, Section 3-Gas Supply as the case may be) of NBC of India prepared by BIS and as prevalent at the time of execution of the work. iii. Solid Waste Collection and Disposal System shall be in place by implementation of environmentally sound solid waste collection mechanisms. iv. The Project site shall be maintained as “Plastic Free Zone”. v. Maintain the natural areas and indigenous vegetation to extent possible; vi. Retain the natural drainage characteristics; vii. Incorporate Energy efficient designs & utilities; viii. Efforts shall be made for Water Conservation by implementing innovative practices such as Rain water harvesting methods ix. Usage of non-polluting internal transport system such as battery operated cars etc. 4. Power Supply

i. Developer may explore more of non-conventional/renewable energy sources of power supply like solar, wind etc. to match the theme of eco-friendly development. ii. The Developer shall ensure: a. Un-interrupted power supply to the Project Components; b. Adequate earthling provisions for total protection of equipment; c. 100 % backup through requisite number of DG sets as stand-by 5. Fire Fighting Facilities

The Developer shall provide the required fire-fighting equipment and facilities including fire exits, fire proof doors, etc. conforming to the relevant BIS standards. 6. Rain Water Harvesting

The rainwater harvesting shall be adopted as per the rules and regulations laid down by the statutory law applicable for the concerned area. 7. Facilities for Physically Challenged Persons

The Developer shall provide necessary arrangements for disabled / physically challenged persons for accessing project facilities. 8. Signages

The Developer shall provide signages so as to facilitate necessary information to the visitors regarding amenities and their location. The signage would be provided separately;

i. Information Signs, ii. Facility Signs, and

24 iii. Other Signs

9. Parking Area

As per the demand, the developer shall provide parking facilities for the visitors of the proposed project. In that case the specifications to be followed are as below: 10. Access within the Site

a. The main access to any component shall have adequate width not less than 7.5 m. b. An unobstructed area of minimum width of 3 m. shall be provided around each built structure in the premise for Fire Tender movement. This shall be within the limit of the site and shall be paved with impervious material above a hard bed. All the above are minimum requirements subject to the norms of fire services department 11. Supporting Facilities and Amenities

The developer shall provide all the necessary supporting facilities and amenities confirming to the development controls and meeting the relevant Indian standards.

3.6. MINIMUM SERVICE OBLIGATIONS

The developer should ensure adherence to the minimum service obligations. The minimum service obligations are defined, but are not limited to the following: 1. Pre-operative checks

The daily pre-operative checks should be conducted on the machinery. These include but are not limited to gear box oil checks, whether there is wobbling in the splicing ear, checking of auxiliary drive and main drive, checking for vibration above defined levels in tower etc. 2. Post-operative checks

There should be a preventive maintenance schedule prepared, and maintenance on the plant and machinery should be conducted once a month. Major maintenance and repair should take place monthly. BIS standards must be mandatorily followed for all plant and machinery equipment. These obligations are only indicative in nature, and the developer must ensure the safety and security of passengers.

4.1. METHODOLOGY

The methodology adopted to arrive at the feasibility of the proposed aerial ropeway project factors in the fact that significant constraints exist for arriving at an absolutely accurate number of visitor’s (both pilgrims and tourists) to Kotappakonda temple. The visitors at the temple are not recorded officially, and since lakhs visit on Mahashivratri it is physically and administratively difficult to record the number of arrivals. Keeping these constraints in mind, data from administrative officials of the Tourism Department stationed on-site has been obtained. Certain simplifying assumptions have been used to arrive at the key metric used in analyzing feasibility.

4.2. DEMAND ESTIMATION

As per data obtained, visitor arrivals at Kotappakonda exhibit seasonal patterns, depending on festival time (peak season) and normal season (off-peak season). The visitor footfall peaks in the last week of February, during the festival of Maha Shivratri, and during November, during the festival of Kartik Maas. Hence, the off-peak season has been defined as the time period during all the months in a year except February and November. The peak season is during the month of February and November. Data on collection of visitor footfalls to the Kotappakonda temple is exhibited below:

Visitor Arrival Schedule Per Week (off-peak season) Weekly Arrivals during off-peak season

Weekly Mon Tues Wed Thurs Fri Sat Sun Total

5000 1000 1000 5000 5000 5000 5000 27000

The approximate weekly visitor footfall during the off-season is ~27000. There are ten months in the off-peak season.

4.2.1. TOURIST ESTIMATIONS

The daily operating hours of the ropeway are assumed to be 10 hours, from 7:00 am in the

morning till 5:00 pm in the evening). The percentage of total visitors to the temple who would 26 use the ropeway is assumed to be 30% (keeping in mind that significant people come via the

Ghat road in vehicles, and would switch to the ropeway for the enhanced touristic experience). One day of downtime due to maintenance and repair for the ropeway system is assumed in a month. Passenger per hour during off-peak season computation Passenger per hour during off-peak season computation

Monthly Daily No. of % of No. of Passenger / hour Operating ropeway during off-peak Weekly Total Months in operating hours passengers season Total (A*4) = (B) the off-peak days in a (A) (C) season (D) (E) month [(B)*(E)]/[(F)*(C)] (F)

27000 108000 10 10 30% 29 112

February is a critical month for the temple as Mahashivratri falls in this month. The number of tourists in the festival week peaks by almost 5 times the normal weekly average. Passenger per hour computation for February

Passenger per hour computation for February

February No. of Hours of % of Passenger per hour Weekly Fourth Week operating Total daily Ropeway during February Total (Mahashivratri) days in a (C)= operation Passengers (G)= (A) (B) month (D) (E) [(C)*(E)]/[(F)*(D)] (A)*(3)+(B) (F)

27000 200000 281000 10 30% 29 291

Similarly, for the month of November, the weekly arrivals follow a different pattern due to the festival season of Kartik Maas. Visitor Arrival Schedule (November) Weekly Arrivals during November

Weekly Mon Tues Wed Thurs Fri Sat Sun Total

7500 7500 7500 7500 7500 7500 7500 52500

Passenger per hour computation for November

November Passenger per hour computation

November Hours of daily % of Ropeway Passenger per hour Weekly Total No. of operating operation Passengers during November (F)= days in a month Total (A) (B)= (C) (D) [(B)*(D)]/[(E)*(C)] (A)*(4) (E)

52500 210000 10 30% 29 217

4.2.2. CABIN ESTIMATION

Assuming a cabin can do 5 return trips in an hour (given the distance of 1200 m and 2m/sec average speed of the cabin), 7 cabins are required to accommodate the demand (passengers per hour) in off peak season. Assuming a maximum design capacity of 12 cabins on the ropeway (due to load constraints) and space for 6 passengers, at 5 return trips the maximum number of passengers that can be transported via ropeway in an hour is 360. This forms the ceiling of the demand estimates, for the purposes of revenue computation.

4.3. PROJECT COST BREAKUP

The Project cost breakup is provided below:

Approximate cost (INR Project Cost Head % of Total project Cost mn)

Civil Works 38% 37.37

Plant & Machinery 62% 60.00

Total Project Cost 100% 97.37

Financial and Accounting Assumptions 1. The project cost is assumed to be financed 100% by equity finance 2. Depreciation is applied on a straight line basis 3. Corporate tax rate is 30%, with a surcharge for 10% and education-cess of 2%, it amounts

to 33.66 % approximately

4.4. REVENUE ASSUMPTIONS

1. The Authorization agreement with the developer is assumed to be for a period of 20 years, and the cash flows of the project to arrive at the IRR is projected over this period. Two years has been finazlied as lease period as: a. 20 years can be considered as reasonable life of ropeway equipment which would be installed by the developer b. The time period is reasonable long for developer to recover costs and profits without considering additional sources of revenue like food & beverages and advertising 2. The one way tariff (INR per passenger per trip) is INR 50. 3. This tariff is escalated at 5% per annum. 4. The escalation is passenger trips is assumed to be growing at 2% annually, given the increase in tourist demand and benefits of the ropeway in promoting the destination for tourists. This is subject to a ceiling of 360 passengers per hour, due to capacity constraints mentioned above.

4.5. OPERATING ASSUMPTIONS

1. Number of operating hours is assumed to be 10 hours per day. 2. Number of operating days in a month are assumed to be 29, assuming one day of downtime for repair and maintenance. 3. Operating and maintenance expenses (including fuel, utilities, manpower costs etc.) are assumed to be INR 2 mn per month, escalated at 4% per annum.

4.6. ADDITIONAL DEVELOPMENT PREMIUM

The project developer shall have to pay additional development premium in way of minimum assured revenue or % contribution of gross receipts, whichever is higher. It has been assumed that the revenue contribution will start from end of two years from COD. It would either be 20 lacs per year, incremented at 5% per year, or 4% of gross receipts, whichever is higher.

4.7. PROJECT FEASIBILITY

Factoring in the assumptions mentioned above, the Project IRR is a robust 19.6%, indicating a very profitable investment. The Project Net Present Value is also positive at INR 69.40 mn. This project is commercially feasible and should be invested in, keeping in mind the assumptions and constraints outlined above.

Page Project Report on Development of “Kotappakonda

Aerial Ropeway Project”

5. ANNEXURE

5.1. REVENUE COMPUTATIONS

5.1.1. REVENUE COMPUTATION (NORMAL SEASON)

Year of Operation 1 2 3 4 5 6 7 8 9 10 Months of operation 10 10 10 10 10 10 10 10 10 10 Tariff INR 0 50 52 55 57 60 63 67 70 73 Passenger return 0 223 227 232 237 241 246 251 256 261 trips/ hour No. Hours of operation No. 2900 2900 2900 2900 2900 2900 2900 2900 2900 2900 Revenue in off season INR mn 0.00 32.40 34.23 37.00 39.18 41.93 44.94 48.77 51.97 55.25

Year of Operation 11 12 13 14 15 16 17 18 19 20 Months of operation 10 10 10 10 10 10 10 10 10 10 Tariff INR 77 81 85 89 94 98 103 109 114 120 Passenger return 267 272 277 283 289 294 300 306 312 319 trips/ hour No. Hours of operation No. 2900 2900 2900 2900 2900 2900 2900 2900 2900 2900

Revenue in off season INR mn 59.62 63.89 68.28 73.04 78.78 83.55 89.61 96.73 103.15 111.01 30

5.1.2. REVENUE COMPUTATION (PEAK SEASON)

Year of Operation 1 2 3 4 5 6 7 8 9 10 Months of operation 2 2 2 2 2 2 2 2 2 2 Tariff INR 0 50 52 55 57 60 63 67 70 73 Passenger return trips/ 0 360 360 360 360 360 360 360 360 360 hour No. Hours of operation No. 580 580 580 580 580 580 580 580 580 580 Revenue in peak season INR mn 0.00 10.44 10.86 11.48 11.90 12.53 13.15 13.99 14.62 15.24

Year of Operation 11 12 13 14 15 16 17 18 19 20 Months of operation 2 2 2 2 2 2 2 2 2 2 Tariff INR 77 81 85 89 94 98 103 109 114 120 Passenger return trips/ 360 360 360 360 360 360 360 360 360 360 hour No. Hours of operation No. 580 580 580 580 580 580 580 580 580 580 Revenue in peak season INR mn 16.08 16.91 17.75 18.58 19.63 20.46 21.51 22.76 23.80 25.06

5.2. INDICATIVE P&L STATEMENT

Year of Operation 1 2 3 4 5 6 7 8 9 10

Gross Revenues INR mn 0.00 42.84 45.09 48.49 51.08 54.46 58.10 62.76 66.58 70.50 Less: Operating & Maintenance expenses INR mn - 24.00 24.96 25.96 27.00 28.08 29.20 30.37 31.58 32.85 Gross Profit INR mn 0.00 18.84 20.13 22.53 24.08 26.39 28.90 32.39 35.00 37.65 Less: Depreciation INR mn 0.00 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 Less: MAR INR mn 0 2 2.10 2.21 2.32 2.43 2.55 2.68 2.81 2.95 Less: Revenue Cont. 0 1.7136 1.80 1.89 1.98 2.08 2.19 2.30 2.41 2.53 Less: Annual Land Lease Rent INR mn 0.080 0.084 0.088 0.093 0.097 0.102 0.107 0.113 0.118 0.124 Profit before Tax INR mn 0.00 11.89 13.07 15.36 16.80 18.98 21.37 24.73 27.20 29.70

Tax INR mn 0.00 3.96 4.36 5.12 5.60 6.33 7.12 8.24 9.07 9.90

Profit after Tax INR mn 0.00 7.93 8.72 10.24 11.20 12.66 14.25 16.49 18.13 19.80

Year of Operation 11 12 13 14 15 16 17 18 19 20

Gross Revenues INR mn 75.70 80.81 86.03 91.63 98.41 104.02 111.12 119.49 126.95 136.07 Less: Operating & Maintenance 32

expenses INR mn 34.16 35.53 36.95 38.42 39.96 41.56 43.22 44.95 46.75 48.62 Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode

Gross Profit INR mn 41.54 45.28 49.08 53.20 58.45 62.46 67.89 74.53 80.20 87.45 Less: Depreciation INR mn 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 Less: MAR INR mn 3.10 3.26 3.42 3.59 3.77 3.96 4.16 4.37 4.58 4.81 Less: Revenue Cont. 2.66 2.79 2.93 3.08 3.23 3.39 3.56 3.74 3.93 4.12 Less: Annual Land Lease Rent INR mn 0.130 0.137 0.144 0.151 0.158 0.166 0.175 0.183 0.193 0.202 Profit before Tax INR mn 33.44 37.02 40.65 44.59 49.65 53.46 58.69 65.12 70.56 77.56

Tax INR mn 11.14 12.34 13.55 14.86 16.55 17.82 19.56 21.70 23.52 25.85

Profit after Tax INR mn 22.29 24.68 27.10 29.73 33.10 35.64 39.13 43.41 47.04 51.71

5.3. PROJECT PROFITABILITY COMPUTATION

Project IRR computation & NPV 1 2 3 4 5 6 7 8 9 10

Capital Expenditure INR mn (97.37) Profit after Tax INR mn 0.00 7.93 8.72 10.24 11.20 12.66 14.25 16.49 18.13 19.80 add: Depreciation INR mn 0.00 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87

Cash Flows INR mn (97.37) 12.79 13.58 15.11 16.07 17.52 19.12 21.36 23.00 24.67

Project IRR computation & NPV 11 12 13 14 15 16 17 18 19 20

Capital Expenditure INR mn Profit after Tax INR mn 22.29 24.68 27.10 29.73 33.10 35.64 39.13 43.41 47.04 51.71 add: Depreciation INR mn 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87

Cash Flows INR mn 27.16 29.55 31.97 34.60 37.97 40.51 44.00 48.28 51.91 56.58

over 20 years of Project IRR 19.6% operation

Project NPV INR mn 69.40

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