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Manual for Development Projects - Planning Commission

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Chapter 5<br />

NOMINAL & EFFECTIVE RATE OF PROTECTION<br />

Item Domestic Price Border Price<br />

TOTAL SALES 293.6 232.10<br />

Soda Ash 205.00 180.40<br />

Soda Bicarb 88.60 51.70<br />

COSTS<br />

Sea Salt 15.42 14.02<br />

Lime Stone 4.79 4.35<br />

Ammonia 3.77 0.15<br />

Caustic 3.77 3.35<br />

Hydrochloric Acid 0.52 0.52<br />

Gas 16.52 30.03<br />

Coke 33.00 29.33<br />

Electricity 2.80 0.91<br />

Water 0.50 5.09<br />

Packing Material 8.17 6.86<br />

Freight 61.5 5.59<br />

Insurance 2.30 2.09<br />

Depreciation 47.35 43.04<br />

Total cost 74.69 82.66<br />

value Added 218.91 149.44<br />

* Normal rate of Protection<br />

(Million Rupees)<br />

Soda Ash = (205-180.4)/180.4 * 100 = 13.6 %<br />

Soda bicarb= (88.6-51.7)/51.7 *100 = 71.3%<br />

Total Project= (293.6-232.1)/232.1 *100 = 26.5%<br />

**Effective rate of<br />

protection<br />

* Nominal rate of<br />

protection<br />

Effective nominal<br />

rate of protection<br />

http://hd2/pc/popup/ch5_p.html<br />

(218.91 - 149.43)/149.43 *100 = 46.5%<br />

(SALES (D.PRICES)- SALES<br />

(B.PRICES)/SALES(B.PRICES)<br />

(VALUE ADD(D.PRICES)-VALUE ADD<br />

(B.PRICES))/VALUE ADD (B.PRICES)<br />

BREAK EVEN ANALYSIS<br />

*100<br />

*100<br />

Page 23 of 24<br />

Statement-13<br />

9/23/2010

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