BK Infra Ltd. built and operates a 110 k.m. long highway on the basis of Built-Operate-Transfer (BOT) model for a period of 25 year. A traffic…

16. (i) Calculation of total project cost per day of concession period: Activities Amount (₹ in lakh) Site clearance 170.70 Land development and filling work 9,080.35 Sub base and base courses 10,260.70 Bituminous work 35,070.80 Bridge, flyovers, underpasses, Pedestrian subway, footbridge, etc. 29,055.60 Drainage and protection work 9,040.50 Traffic sign, marking and road appurtenance 8,405.00 Maintenance, repairing and rehabilitation 12,429.60 Environmental management 982.00 Total Project cost 114,495.25 Administration and toll plaza operation cost 1,120.00 Total Cost 115,615.25 Concession period in days (25 years × 365 days) 9,125 Cost per day of concession period (₹ in lakh) 12.67 (ii) Computation of toll fee: Cost to be recovered per day = Cost per day of concession period + 15% profit on cost = 12,67,000 +1,90,050 = 14,57,050 Cost per equivalent vehicle = 14,57,050 / 76,444 units (Refer working note) = 19.06 per equivalent vehicle Vehicle type-wise toll fee: Sl. No. Type of vehicle Equivalent cost [A] Weight [B] Toll fee per vehicle [A×B] 1. Two wheelers 19.06 1 19.06 2. Car and SUVs 19.06 4 76.24 3. Bus and LCV 19.06 6 114.36 4. Heavy commercial vehicles 19.06 9 171.54 Working Note: The cost per day has to be recovered from the daily traffic. Each type of vehicle is to be converted into equivalent unit. Let's convert all vehicle types equivalent to Two-wheeler Sl. No. Type of vehicle Daily traffic volume [A] Weight Ratio [B] Equivalent Two-wheeler [A×B] 1. Two wheelers 44,500 0.05 1 44,500 2. Car and SUVs 3,450 0.20 4 13,800 3. Bus and LCV 1,800 0.30 6 10,800 4. Heavy commercial vehicles 816 0.45 9 7,344 Total 76,444