Social Cost Benefit Analysis of

Isolated Solar Power Project at

Village - Buknari, District - Gaya, Bihar

Team VIDYUT
1

MOHIT SHAH
15PGDM01A00
2

KUMAR GAURAV

15PGDM04A00
8

GHOLAM RABBANI
GHAUSE

15PGDM05A01
1

Reference Frame for

Village - Buknari, District Gaya, Bihar

Particula
rs

Status

No. Of
House

101

Population

587

Area

240 HA

Road
Length

1.5KM

Average
Income

12000/M

Current
Mode of
Lighting

Kerosene
Lantern and
DG Set

No. Of
Public
Building
(School,
Communit
y

OBJECTIVE
Provide affordable, convenient, reliable and
environment Friendly Power in Village Bunkari in
Bihar having population of 587/101 Households
Provide Solar based Street Lights

Provide Electricity for Agriculture pump sets

Provide Electricity to Looms

Demography & Topography

Demographics

Topographic

Social benefits to the villagers through :

the enhanced community operations and industrial
power development that electrification will provide.
Accordingly, the health clinic, school and
community centers are priority connections to the

Who gets benefitted and What

Who

What

Farmers

Affordable and Reliable Electricity/Productivity

Children

Increase in Study Hours

House Wives

Health Benefits ( Easy Cooking)

Individual
Households

Electricity Cost Savings

Villagers

Safety ( Street Light Increase in Working hours)

Land owner

Compensation

Workers (SK & USK)

Jobs

Loom Owners

Productivity

Who Loses and What

Who

What

Kerosene traders

Income loss

Land owner

Opportunity cost

DG Set Owners

Income loss

Pump owners

Income Loss

Farmers

Money (Purchase of Electric Pump)

Assumptions on Types of Loads

Information collected at Bunkari was used to establish energy
consumption needs for three levels of importance as shown in Table.

Level 1 comprises health, education, and community activities.

Level 2 comprises street lighting and commercial needs.

Level 3 includes household consumption,

but electric power consumption for this level represents an estimate
because of a lack of information regarding household appliances, if any,
throughout
villages
houses. for all levels is close to 19.5 kW.
Total
electric the
power
consumption

This total electric power consumption does not include energy

needed for economic development or losses for electric distribution
and inefficiencies.

Power Consumption

20,200
29,750
Watts

Looms

6,000

Agricultural
Instruments

4,250

Total

40,000

Impact of the Project (Positive)-KPI

Benefits
Unit
measureme
nt Indices

Quantit
y

Rate (INR) Amount

(INR)

Remarks

Diesel Saved

Ltrs

750

60

45000

300acre@2.
5Ltr/acre/M

Kerosene
Saved

Ltrs

505

30/Ltr

15150

5ltr/HH/M

Health
Benefit

Reduction
in
Consumpt
ion of
Medicines

100/M/HH

10100

Rs 100/HH

Agricultural
Productivity

LS

100/M/HH

10100

Loom
Productivity

LS

300/M/Loo
m

1500

Land owner

LS

2000/M

2000

Workers (SK
& USK)

Man-Days

60

300/M/Day

18000

Employmen
t
Generation

Impact of the Project (Negative)-KPI

Costs
measurem
ent Indices

Unit

Quanti
ty

Rate
(INR)

Diesel
Traders

Ltrs

750

2/Ltr

1500

Kerosene
Traders

Ltrs

505

2/Ltr

1010

Medical
Stores

Reduction
in Sales of
Medicines

20/M/HH

2020

Land owner

LS

300/M

300

Pump
owners

Hrs

600

5/Hr

3000

Farmers

Money
(Purchase
of Electric
Pump)

LS

Amount
(INR)

10000

Remarks

Total
Investment
over a
period of 5
Years

Project Investment Costs

Description

Qty

Per Unit Rate

Total Cost

PV equipment
50KW
Including
Installation, Civil
Works and
Battery

80000/KW

40,00,000

Laying of
Distribution
Lines

2.5KM

335000/KM

8,37,500

Service Wire
and Meters

101Nos

600/Unit

60600

3 Phase Meter

10

1000

10,000

Electrical
Equipments

LS

1000

101,000

Total

~ 50,00,000

Developers

Present Value of Costs and

Benefits
Time Period : 15 years
Financial NPV :
( - Rs. 16,45,000)
Social NPV : Rs.
91,31,000

Sensitivity Analysis
Description

Parame
ter

Financial
NPV
(Rs Lakhs )

Social NPV
(Rs Lakhs )

Investment
Increases by

5%

-19.00

89.00

Investment
Increases by

10%

-21.50

86.30

Household
Consumption
increases

5%

-18.08

89.70

Commercial
Consumption
increases

5%

-19.71

88.04

20%

-22.94

84.81

Electricity Cost
decreases

5%

-18.08

89.72

Electricity Cost

10%

-19.62

88.13

O&M Cost increases

Recommendations
Social cost benefit analysis is an appraisal tool to
evaluate a project from the view point of the society
as a whole.
The project starts earning in the 2nd year of
operations but is Financially unviable.

The Social benefit out powers the Financial benefits.

However, if the government objective is to electrify
the rural areas which has never seen the light at
night, take up the project under one of the initiatives
like DDUGJY to light up the lives.

Thank You