Ecological Footprint Assessment …
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2.2 Economic Assessment
The economic assessment is equally important to verify the viability of suggested
ecological footprint reduction measures. The economic assessment of the cost of
production of the products per-unit mass is done based on the factors: raw material,
energy, labour, repair and maintenance, transportation and water.
2.2.1 Cost of Raw Materials
The average cost of raw material is calculated based on the year-long variation of
prices. The average cost of kraft paper includes costs of kraft paper for corrugation
and single colour printing and duplex board for four-colour printing as all these
papers are of same bursting factor. Similarly, the average cost of modified starch
includes starch for corrugation and starch for pasting. All other raw materials are of
the same kind, and their average cost is calculated based on the year-long variation.
2.2.2 Cost of Energy
All the energy requirements of the industry are currently met by electricity supplied
by grid alone. The cost of electricity was averaged based on energy charges, monthly
rentals, time of day tariff, fuel adjustment charges, power factor penalties/incentives,
electricity duty, wheeling charges, tax on sale and other charges.
Energy charges are the per-unit charge of electricity charged according to the
category specified by Maharashtra State Electricity Distribution Company Limited
(MSEDCL) as LT-V B II which is Low Tension Industrial Purposes for general usage
over 20 kW supply. Monthly rentals include the fixed monthly charges for using the
electricity provided by the company. Time of day tariff (t.o.d tariff) includes the
charges and incentives on time-bound usage to improve the uniformity in demand
along the day. During peak hours the t.o.d is charged while during low loads incentives
are given on energy usage. Power Factor (PF) incentives are provided to encourage
industries to keep the Power Factor close to 1, while they are charged penalties
for poor PF. Wheeling charges are the transmission charges levied on every unit
consumed. All these charges are considered to calculate not only the actual rate of
electricity from the grid but also when replaced by some other source of energy.
2.2.3 Cost of Labour
Cost of manpower or labour is averaged based on the type of labour and hours of
labour required. This cost is calculated for labour-hours based on the wages of skilled
and unskilled labours and the number of labours.
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