1. A WORKSHOP ON FINANCIAL MANAGEMENT IN HYDROLOGY PROJECT – PHASE-II Gujarat Water Resources Development Corporation Ltd. GWRDCGANDHINAGAR (GW Component GUJARAT)

2. FINANCIAL MANAGEMENT IN HYDROLOGY PROJECT (PHASE-II) LOAN NO. 4749-IN TOTAL PROJECT COST RS. 55559 LACS. TOTAL COST OF GW COMPONENT-GUJARAT- RS.1044 LACS PROJECT SPAN : 6 YEARS STARTING FROM 2006-07 TO 2011-12

3. I : INVESTMENT COST SR.NO.CATEGORY TOTAL COST (RS. IN LACS) 1WORKS124.09 2GOODS322.19 3TRAINING162.30 4CONSULTANCY94.82 TOTAL - I:703.40 II: RECURRENT COST 1O & M WORKS15.97 2O & M GOODS4.75 3STAFF225.27 4O & M OFFICE65.02 5O & M VEHICLES29.63 TOTAL COST : I + IIRS.1044.04 PROJECT COST DETAILS FOR PROJECT COST DETAILS FOR GROUND WATER COMPONENT GROUND WATER COMPONENT(GUJARAT)

4. Hydrology Project Phase-II A B S T R A C T CATEGORY WISE (GUJARAT - GW) Detailed Base Cost I. INVETMENT COST (Rs. In lacs) CATEGORYY E A R TOTAL 200620072008200920102011 W O R K S029.7937.1938.7612.066.30124.09 G O O D S33..5193.2089.6162.2827.2116.40322.19 T R A I N I N G S23.8634.5731.7327.8824.0620.22162.30 C O N S U L T A N C Y7.2720.9526.0619.2213.517.8294.82 T O T A L INVESTMENT COST64.63178.50184.58148.1376.8450.74703.40

5. II. R E C U R R E N T COST O & M Works2.46 2.562.772.87 15.97 O & M Goods000.461.231.53 4.75 Staff19.6535.3444.1752.9945.4027.74225.27 O & M Office4.7210.8216.1520.7510.112.4565.02 O & M Vehicles1.024.096.13 29.63 T O T A L R E C U R R E N T COST 27.8552.7169.4783.8766.0440.72340.64 G W T O T A L H. P. - I I92.48231.21254.05232.00142.8891.461044.04

6. PROJECT COST Rs. 1044.04 Lacs

7. CAPITAL COST Rs. 703.40 Lacs

8. RECURRENT COST Rs. 340.64 Lacs

9. IINVESTMENT COST SR.N O. CATEGORYESTIMATED BASE COST (2006-07) ANTICIPATED EXPS. 2006-07 REMARKS 1WORKS00 2GOODS33.5121.28 For procurement of Goods, CGW is, Faridabad, vide letter dt.21/6/06 has stated that procurement can be made after specification is finalized by specification committee to be constituted by MOWR, Delhi. 3TRAINING23.869.56 Training for onsite sampling analysis under water Quality Procedure @ WALMI will be completed by September-06 and Govt.of Gujarat has approved Rs.9.56 lacs for the same. 4CONSULTANCY7.270 Total :-64.6430.84 FINANCIAL TARGETS FOR F.Y.2006-2007 (RS. IN LACS)

10. FINANCIAL TARGETS FOR F.Y.2006-2007 FINANCIAL TARGETS FOR F.Y.2006-2007 (RS. IN LACS) SR.NO. CATEGORYESTIMATED BASE COST (2006-07) ANTICIPATED EXPS. 2006-07 REMARKS II RECURRENT COST 1O & M WORKS02.460.00 2O & M GOODS0.00 3STAFF19.6526.06 4O & M OFFICE04.720.00 5O & M VEHICLES01.020.00 Total : II27.8526.06 GRAND TOTAL : I + II92.4956.90 Increment staff cost is estimated to be of Rs.26.06 lacs and considered from July-06 onwards. Anticipated Expes. For the first year of project span is less than estimated Exps. But will be absorbed on spill over works.

11. HYDROLOGY PROJECT – PHASE-II GW-COMPONENT DISBURSEMENT ARRANGEMENT : Function of GROUND WATER COMPONENT IS UNDER the control of Principal Secretary, Narmada Water Resources, Water Supply and Kalpasar Department Gandhinagar (Gujarat). The Funds are allocated as per Budget provisions in Annual Budget of the Deptt. Budget provision for the year 2006-07 for Hydrology Project amounts of Rs.29.90 lacs. Whereas,Targated expenditure for the year 2006-07 is Rs.56.90 lacs. Remaining amount is expected to be provided by the Govt. of Gujarat in supplementary budget Allocations. Govt. of Gujarat is allotting Funds as per requirement of the project hence, the allocation of fund is not the hurdle in Implementing the project.

12. HYDROLOGY PROJECT – PHASE-II GW-COMPONENT REPORTING FORMATS : (1) SOE (Statement of Expenditure) Like HP-1 Project, SOE will be prepared with full documentation and supporting vouchers and submitted to Government of Gujarat considering eligible expenditure at prescribed % for financing. Sr.No.Expenditure CategoryFinancing Percentage 1Civil work90% 2Goods including equipments Machinery, Vehicles,materials100% Foreign Exps. 100% Local expenditure (Ex. factory) 80% Local expenditure procured locally. 3Consultancy Charges90% 4Training100% 5Incremental operating costs including salaries80% up to 31-3-2007 75% up to 31-3-2008 60% up to 31-3-2009 50% there after (2) Quarterly Progress Report :- (QPR) Physical and Financial Quarterly progress reports will be prepared and submitted to Govt. of Gujarat for Further disposal.

13. HYDROLOGY PROJECT – PHASE-II GW-COMPONENT ACCOUNTS AND AUDIT : (A) Accounts :GWRDC Ltd., is a wholly owned Govt. company within the meaning of section 617 of the companies Act, 1956. As such Accounts are prepared on Accrual basis and as per Mercantile System of Accounts. So for as Hydrology Project-II is concerned Accounts of the project will be maintained on CASH BASIS OF ACCOUNTS and expenditure will be classified as per a)Budget head of account and b) Disbursement category Also, prescribed registers will be prepared at each unit level and all concerned accounts personnel will be trained with the requirement of Financial Management as prescribed. (B)Audit : As stated in (A) above, being a Govt. Company, accounts of the corporation are audited by statutory Auditors appointed by comptroller and Auditor General of India, New Delhi and Supplementary Audit is also conducted by C & A.G. More over, Internal Audit is carried out by the experienced firm of Chartered Accountants. In HP, -1 project GWRDC Ltd., got audited the Hydrology project expenditure through a firm of Chartered Accountants and prescribed audit reports were submitted to MOWR. Likewise, audit of HP-II will be carried out by the firm of Chartered Accountants and reports of the auditors will be submitted within reasonable time limit.

14. HYDROLOGY PROJECT – PHASE-II GW-COMPONENT (GUJ.) FINANCIAL MONITORING : 1) Adequate provision of funds will be made through Budget provisions of Govt. of Gujarat during Project Span of 6 years starting from 2006-07. 2) Procurement of goods, equipments, materials, machinery, hiring of consultants will be done as projected and as per the Bid documents, bid procedures etc., as done in HP-1 project and as per prescribed procedure. 3) Expenditure incurred will be monitored with reference to estimates made and on components of the project. 4) Required Information will be collected and submitted to the concerned Authorities on due date. Proper Accounts will be maintained for which training will be given to concerned Accounts personnel of each Implementing units.

15. The Presentation reveals the Financial Management for HP – II by the Gujarat State Gujarat Water Resources Development Corporation Ltd. (GWRDC Ltd)