Life-Cycle Costing for Indian Public Assets: CAPEX, OPEX and the Discount Rate

Indian public-works rules mention life-cycle cost and mandate it nowhere: the General Financial Rules and the Department of Expenditure's works manual both say its principles "may also be considered". On CPWD's own yardsticks, at a common 1 April 2019 base, thirty years of maintaining a government office costs about 45 per cent of plinth-area building cost in constant rupees — but under 12 per cent once discounted at the 12 per cent rate Indian appraisal inherited from the Planning Commission. This report sets out what guidance exists, what that rate does to a thirty-year horizon, and why whole-life cost almost never changes an award.

Part of AECS Research Global's publications programme — drawing on ARG's work across cost management, EPC advisory and integrated project delivery. Download the full report below.