- By S. R Chowdhury & N. P Salhotra

                                                                    Member (HPCS)

Purchase of new equipment - Profit or Loss 

Purchasing of new equipment  

• Initial cost is high.
• Up to 6 month no investment is required except maintenance cost.
• Terrific gain in out put of the equipment as it is new.
• During purchase minimum 3 condition must be followed:

1.       Uncomfortable discount should not be taken.

2.       Technical specification should be checked care fully.

3.       Reputed manufacturer should be considered.

              Hiring of old equipment 

-           Initial investment is low.

-          No investment is required in Maintenance because it is included.

-          Idle charges to be paid.

-          Loss in out put as it is old & used equipment.

-          Monthly hire charges @ 1.50 Lakhs +cost of fuel

-          Hire charges per year is Rs.18.0 Lakhs, which is a cost of almost new equipment.

-          Hiring of equipment for Short time is beneficial than Long time.

Conclusions:- 

Purchasing of new equipment for a hydro electric project is profitable provided we follow the conditions for purchase of new equipment as laid down above. For running & maintenance of the equipment central water commission (GOI) has fixed life & repair provision of different type of equipment used in hydro electric projects so that we may come to know the various information about the equipment. For example a 100 HP Dozer has 10,000Hr or 8 years of life and 200% repair provision, this means if we utilize repair provision @ its guide line honestly i.e. 35% in the 1^st year, next 25% in the 2^nd year and so on then we will observe that in the increase of life the equipment does not losses its efficiency .

Further if any discussion required or ask questions may please be contacted to my mail address swapan.chowdhury@hpcs.co.in