CIP PC-1 (Pre-DDWP Ammended) March, 2012 With Sign

Revised 2005
GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PC – 1 FORM
REVIVAL OF CUTLERY INSTITUTE OF PAKISTAN

(CIP) WAZIRABAD
(REVISED March’ 2012)
Turn Potential into Profit

Small & Medium Enterprises Development Authority
Ministry of Industries
Government of Pakistan
http://www.smeda.org.pk
Cutlery Institute of Pakistan (CIP)

6 km, Sialkot Road Wazirabad
Tel: 055- 6692252, 6692452, 6692647, 6692648
Fax: 055- 6692453
1
Cluster Development Programs Revival of Cutlery Institute of Pakistan
Wazirabad
1. Name of the Project

Revival of Cutlery Institute of Pakistan (CIP), Wazirabad
2. Location
6 KM, Sialkot Road, Wazirabad
3. Authorities responsible for

i. Sponsoring:
Ministry of Industries (MoI)
ii. Execution:
SMEDA through Board of Management (BoM) notified by Government of
Pakistan.
iii. Operation and Maintenance:
- BoM
- Project Director
iv. Concerned Federal Ministry:
Ministry of Industries (MoI)
4. (a) Plan provision
 If the project is included in the medium term/five year plan, specify

actual allocation.
N.A.
 If not included in the current plan, what warrants its inclusion and how
is it now proposed to be accommodated.
The project will be funded by Government of Pakistan (out of PSDP)
 If the project is proposed to be financed out of block provision, indicate.
(Rs. millions)
Total block Amount already Amount proposed Balance
provision committed for this project available
- 39.84 59.80 19.96
(b) Provision in the current year PSDP/ADP.
Allocation for an amount of Rs. 14.030 million out of PSDP 2011-12. Year wise
requirement of funds is given below;
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PC-1 CIP, Wazirabad 1
Wazirabad
(Rs. millions)
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
10.63 4.86 10.371 2.602 14.030 12.175 8.0
5. Project Objectives
 The objectives of the sector/sub sector as indicated in the medium term/five year
plan be reproduced. Indicate objectives of the project and develop a linkage
between the proposed project and sectoral objectives
The key objective of the Project interrail to facilitate local industry in developing
cutlery products through the provision of following facilities/services to the industry:
a) Revival of CIP Facilities
b) Need Based Training Programs to Develop Skilled Work Force
c) Management Courses for Entrepreneurs
d) Provision of Common Facilities Services (CFC)
e) Design and Prototyping Services
f) Business & Technical Advisory Services
 In case of revised Projects, indicate objectives of the project, if different from

original PC-I.
There is no change in objectives of already approved PC-1.
6. Description and Justification of Project
 Describe the project and indicate existing facilities in the area and
justify the establishment of the Project.
Wazirabad is known for its traditional cutlery products. Over the years this industry has
grown into a large Cutlery Manufacturing Cluster in Pakistan. There are around 300
units engaged in manufacturing with a direct employment of 10,000 workers. The
cutlery items including knives, swords, daggers, axes etc. are 100% export oriented
whereas tableware cutlery is mainly domestic oriented.
Globally the total trade in table cutlery is about US $ 5 billion with an average global
annual growth rate is 4%. Although cutlery is one of the important export oriented sub-
sector commodities of light engineering sector in Pakistan, the cutlery industry has not
yet been able to export as per its potential. At present, Pakistan’s share is only 1.43% of
the global cutlery trade, however table cutlery has the great potential of improvement in
exports, provided better manufacturing and marketing strategies are carried out.
The cutlery sector requires trained entry level semi-skilled workforce to replace its
aging craftsmen. The industry also requires clerical and export marketing white collar
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Wazirabad
workers on a sustainable basis. New training modules would be introduced to create
cutlery specific and business development training for the cluster. As a result, the
cutlery trade will be strengthened thus increasing the income level of the industry. The
various technical and non-technical courses have already been initiated at the center to
bridge this gap of skilled workforce and many of its pass outs have already been
inducted in the industry.
The technology currently employed by the industry is very low and traditional that
leads to high wastage rate and low quality products. The manufacturers are usually
unaware of new techniques, international standards & regulations, emerging market
trends, certifications, trademarks etc. and this unawareness results in low export orders.
Majority of these units are of small size hence are unable to achieve economies of scale
as face significant hindrance to the internalization of functions such as training, market
intelligence, logistics and technology innovation - all of which are at the very core of
an export type firm dynamism. As the manufacturing capacity of these units is not very
high, coupled with inefficient production methods and high utility costs these units
have become uncompetitive in both local and export markets. Individually the
manufacturing units cannot capture market opportunities which require large
production quantities, exacting quality standards, and an efficient export supply chain.
The center is providing business and technical consultancy services to entrepreneurs
and also conducts awareness seminars on regular basis as per industry’s requirement. A
designing facility is also being setup at the center to facilitate the industry in generating
new designs for cutlery. CIP will also encourage creation of possibilities of joint
sourcing/purchasing of raw material in bulk and thereby avail the benefit of lower
costs.
 Provide technical parameters i.e. input and output of the project.

Also discuss technological aspect of the project.
Training and CFC are the two main components of the center. The proposed project
will provide Designing, Training, Business & Advisory consultancy, Prototype
development and CFC services of shearing, blanking, heat treatment process, press
woks, CNC operations and die making to the industrial cluster.
The availability of workforce, appropriately trained on new manufacturing techniques
would ensure the transfer of new technology into the local industry. The managerial
training for white collar will ensure that the cutlery sector gets persons with the right
managerial/clerical skills to help them meet challenges of export market. Similarly
designers using CAD technology will help to reduce product development costs and
lead time.
 Provide details of civil works, equipment, machinery and other

physical facilities required for the project.
o Land
Cutlery Institute of Pakistan, Wazirabad has 41 Kanals Land with one admin block,
three workshop buildings, cafeteria, mosque, guard house, pump house constructed in
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Wazirabad
the period of TDAP. This infrastructure is adequate to bring about the needs of
training courses being offered at CIP.
o Civil Works
Table 1: Repair and Maintenance of Existing Building:
(Rs. Millions)
Sr. Description Approved Revised
Difference
Cost Cost
1 Repair of existing Building
(Admin block & CFC workshop) 1.2 1.1 -0.1
Total Cost (Rs. Millions) 1.2 1.1
o Machinery & Equipment

Table 2: Detailed List of Machinery/ Equipment:
(Rs. Millions)
Approve Revised
Sr Approved Revised Differenc
Description of Items d Quantit
. Cost Cost e
Quantity y
1 Drawing Tools and 14 14 0.260 0.220 -0.040
Equipment ( 12 sets) +
Drawing M/c ( 2 Sets)
2 Flexible shaft hand 4 2 0.240 0.046 -0.194
Grinders ( 5000 RPM)
3 CO2 Welding Machine 1 1 0.060 0.190 0.130
4 Argon Welding Machine 1 1 0.150 0.080 -0.070
5 Surface Grinding Machine 1 1 1.000 1.447 0.447
with sine chuck
6 EDM Wire Cut Machine 1 1 1.500 2.550 1.050
7 Bowl Rolling Mill 1 1 1.200 1.500 0.300
8 Pit Furnace for casting & 1 nil 0.030 0.000 -0.030
molding
9 Rockwell Hardness 1 nil 1.000 0.000 -1.000
Testing Machine
10 Tempering furnace and oil 1 nil 0.500 0.000 -0.500
bath
11 Electric Resistance Muffle 1 nil 1.000 0.000 -1.000
Type Hardening Furnace
12 Roller polishing machine 1 1 1.000 1.000 0.000
13 Lath Machine nil 1 0.000 0.200 0.200
14 Shaper Machine nil 1 0.000 0.200 0.200
15 Universal milling Machine nil 1 0.000 0.400 0.400
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Wazirabad
17 Power Hacksaw nil 1 0.000 0.100 0.100
18 Measuring equipment and nil assorted 0.000 0.200 0.200
gauges
19 Gas welding plant nil 1 0.000 0.035 0.035
20 Welding Plant nil 2 0.000 0.040 0.040
Total Cost (Rs. Millions) 7.940 8.208 0.268
Table 3: Repair of Existing Machinery:

(Rs. Millions)
Approved Revised
Sr. Description Difference
Cost Cost
1 Repair of existing Machinery
(Alteration of continuous Heat nil 1.500 1.500
Treatment Plant)
Total Cost (Rs. Millions) 0 1.500 1.500
o Office Equipment
Table 4: Details of Office Equipment
(Rs. Millions)
Approve
Sr Revised Approve Revise Differenc
Description of Items d
. Quantity d Cost d Cost e
Quantity
Computers with UPS
1 (including cost of existing 12 15 1.000 1.170 0.170
equipment Rs. 0.97mn))
2 Color Printer nil 1 0.000 0.020 0.020
3 CAD software nil 1 0.000 0.100 0.100
4 Fax nil nil 0.000 0.000 0.000
5 Photocopier nil 1 0.000 0.160 0.160
6 Multimedia Projector 1 1 0.000 0.100 0.100
7 Air Conditioners nil 4 0.000 0.200 0.200
8 Water cooling Machines nil 2 0.000 0.030 0.030
as per
9 Appliances nil requiremen 0.000 0.050 0.050
t
10 Genset nil 1 0.000 0.100 0.100
11 Air cooler nil 4 0.000 0.040 0.040
as per
12 Misc requiremen 0.000 0.050 0.050
t
Total Cost (Rs. Millions) 1.000 2.020 1.020
The specifications and quantities for local/imported machinery, office equipment and furniture
& fixture are based on information collected from suppliers/stakeholders/institutions which
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Wazirabad
may vary at the time of actual procurement made after detailed technical & financial
evaluation. Procurement of local machinery will be considered over imported machinery,
subject to the availablility of desired specification & quality.
Machinery purchased during the period of TDAP is place at annexeture I table no. 17
o Course Curriculum Development

Table 5: Details of Course Curriculum Development:
(Rs. Millions)
Approve Revised
Approved Revised Differenc
Sr d Quantit
Cost Cost e
. Description Quantity y
Out sourcing of curriculum
1 development of training 1 1 2.800 2.500 -0.300
programs
Total Cost (Rs. Millions) 2.800 2.500 -0.300
o Transport Vehicles
Table 6: Details of Vehicles Requirement:
(Rs. Millions)
Sr Approved Revised Approve Revised
Description Difference
. Quantity Quantity d Cost Cost
1 Car for PD nil 1 0 1.000 1.000
2 Motor cycle nil 1 0 0.070 0.070
3 Miscellaneous
(Registration, as per
nil 0 0.050 0.050
Duties/Taxes requirement
etc.)
Total Cost (Rs.
0 1.120 1.120
Millions)
 Indicate governance issues of the sector relevant to the project and

strategy to resolve them.
Board of Management has already been notified (copy enclosed- ANNEXURE IX).
Following structure has been followed to resolve the governance issues and to ensure
public / private partnership to CIP.
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Wazirabad
Steering of overall process of implementation

Govt. of Pakistan Provision of resources
Hiring of PD
MoI & TDAP Notification/removal of BoM
SMEDA Laying down and ensuring implementation of a
system pf operational and financial controls
Adherence to financial rules and government
procedures
Ensuring best value
Overall policy of theofcenter
money
Annual budget approval
Hiring/termination of staff (except Project
Director)
Performance evaluation
The number of Board members may not exceed
Board of Management (BoM) 10
SMEDA, TDAP, NAVTEC, PVTC 6 BoM members may be nominated from private
GCCI, SCCI, PCSUMEA sector
Key industry players 4 BoM members may be nominated from public
sector
The tenure of the BoM will be 3 years
Day to day operations

Project Director Implementation of BoM decisions
Secretary to the Board
Project Director will report to SMEDA
7. Capital cost estimates
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Wazirabad
 Indicate date of estimation of Project cost.
February 2012
 Basis of determining the capital cost be provided. It includes

market survey, schedule rates, estimation on the basis of previous
work done etc.
Current market rates: The rates of machinery & civil works are at par with the
existing market rates.
 Project Cost Breakup
Table 7: Total Project Cost
(Rs. Millions)
Approved Revised
Sr. Description of Project Cost Difference
Cost Cost
1 Estimated Capital Cost 12.940 17.448 4.508
2 Estimated Operational Cost for Six
Years 42.46 45.263 2.803
3 Total Project Cost 55.400 62.711 7.311
4 Net Revenue 15.56 2.911 -12.649
Total Project Cost (Rs. Millions) 39.840 59.800 19.960
 Fixed Cost
Table 8: Detail of capital cost
(Rs. Millions)
Approved Revised
Sr. Description of Capital Cost Difference
Cost Cost
1 Repair of Existing Building 1.200 1.100 -0.100
2 Repair of Machinery 0.000 1.500 1.500
3 New Machinery and Equipment 7.940 8.208 0.268
4 Office Equipment 1.000 2.020 1.020
5 Course Curriculum Development 2.800 2.500 -0.300
6 Vehicles 0.000 1.120 1.120
7 Contingencies 0.000 1.000 1.000
Total Capital Cost (Rs. Millions) 12.940 17.448 4.508
 Operational Cost
Table 9: Detail of operational cost
(Rs. Millions)
Approved Revised
Sr. Description of Operational Cost Difference
Cost Cost
1 Utilities (Electricity, Gas, Telephone, DSL, 3.620 3.901 0.281
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Wazirabad
Fax, etc)
2 Training Consumables 6.910 4.750 -2.160
3 Stipends for Trainees 1.730 1.837 0.107
4 Staff Salaries 22.360 20.759 -1.601
5 POL & R&M (vehicles, gensets) 3.170 2.480 -0.690
6 Technical Experts 2.790 4.781 1.991
Office Expenses
(Entertainment, Seminars/Workshops,
7 0.520 3.182 2.662
Stationary, Marketing courier, Printing,
provisions, etc)
Maintenance of Mach/Equipment/
8 Buildings/ Furniture/water pump/ tanks 1.110 1.011 -0.099
others etc.
Professional Fee
9 (Legal, Audit, Insurance, Consultants, 0.250 0.232 -0.018
Affiliation etc.)
10 Miscellaneous/ Others 0.000 2.332 2.332
Total Operating Expenses (Rs. Millions) 42.460 45.263 2.803
 In case of Revised Project Provide

o History of the Project Approval, year-wise PSDP allocation,
released and expenditure:
The project was approved by DDWP on May 26, 2008 for a total amount of Rs.
39.84 million (Minutes of the DDWP meeting are enclosed as ANNEXURE-VI)
and necessary funds were released on 16 June 2008. Administrative Approval was
issued by Secretary Ministry of Industries on June 7, 2008 vide letter No.
1(8)/2008-AC (Plans) (letter enclosed as ANNEXURE-VII). An amount of Rs. 15
million was allocated for the Fiscal Year 2007-2008 out of which Rs. 1.5 million
was released to the project authorities for the 4 th quarter of year 2007-2008 (Cash
and Work plan for the year 2011-2012 are enclosed as ANNEXURE-VIII).
Table 10: Year Wise PSDP Allocations and Expenditure:

(Rs. Millions)
Year PSDP Allocation Releases Expenditure
2008-2009 13.000 13.000 10.63
2009-2010 13.000 6.363 4.860
2010-2011 13.861 10.550 10.371
2011-2012 14.030 5.982 2.602
Total 53.891 35.895 28.463
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Wazirabad
o Item-wise, year-wise actual expenditure and physical progress:

Implementation of the project was initiated immediately after the release of funds:
 Purchase of Drafting Equipment and Drafting Machines completed
 Repair and Maintenance of Existing machinery
 Computer Lab installed at CIP including 12 Pcs, 1 scanner, laptop, 1 printer
and one server.
 8 Training Course on going with present enrollment 136 trainees.
 Hiring of PD and Training Staff including Manager Training and Curriculum
Development, Instructors (3), Demonstrators (3 Nos), IT Officer/Instructor,
Admin Staff and support staff . A total of 21 staff members.
 Remaining staff is being hired on as per requirement of the Institute
Activities.
 06 Technical Experts engaged to start up the CFC Services section and 2
technical experts have been engaged in training activities.
 Repair of Admin building, cafeteria and mosque, this repair work is
completed.
 Training consumables purchased in FY 2010-2012 for trainees.
 CNC wire cut machine, EDM micro drill machine and surface grinding have
been purchased
 All machines are in working condition.
 Placement of nearly more than 100 trainees at different Factories at
Wazirabad, Gujranwala and other factories. Total placement of trainees nearly
more than 50
 A total 1041 trainees have been passed out up till now in different trades.
 More than 50 Trainees are working at their own premises.
 38 trainees are getting higher education in different institution
Please refer to Annexure-VII for actual expenditure and physical progress.
o Justification for revision of PC-1 and variation in scope of project

if applicable:
PC-1 for Revival of Cutlery Institute of Pakistan (CIP) Wazirabad was prepared in
early 2007 and presented to DDWP meeting held on July 17th 2007. DDWP had
observations regarding signing MoU with TDAP, viability of the existing machinery
and Continuous Heat Treatment Furnace. The project started its execution phase from
1st July of FY 2007-08 but owing to non-availability of MoU from TDAP and to
fulfill other observations of the DDWP meeting the project execution was delayed in
initiation by one full year. On April 14, 2008, SMEDA signed an MoU with TDAP.
During the execution of the project certain areas have been identified by the
Stakeholders where revision is necessary in order to carry out the successful
implementation. The main reasons are:
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Wazirabad
 Prices of construction raw materials and machinery/equipment have increased
significantly.
 Exchange rate fluctuations over the last years.
 Since last many years Pakistan is facing heavy electric load shading problem
which also badly affected the activities of CIP Wazirabad. WAPDA is
supplying electricity to CIP through its rural feeder and CIP had to face load
shedding from 10 - 12 hrs per day.
 In previous approved PC-1, there were no posts of operators to run CNC wire
cut machine, surface grinding machine, EDM micro drill machine, argon and
gas welding plants.
 Continuous Heat treatment furnace could not be repaired due to insufficient
balance in the relevant head.
 There was shortage of trainees in the first two years.
 Revenue generation is not the commercial object of this project. However, the
revenue generated will be deposited in a separate bank account and may be
utilized as per requirements.
 In the previous financial years CIP had to face serious shortage of funds.
o Item-wise comparison of the revised cost with the approved cost

and given reasons for variation:
Item-wise comparison of the revised cost with the approved cost is given in the table
below;
Table 11: Comparison of Revised Cost with Approved Cost

(Rs. Millions)
Approved Revised
Sr. Description of Project Cost Difference
Cost Cost
Capital Cost
1 Repair of Existing Building 1.200 1.100 -0.100
2 Repair of Machinery 0.000 1.500 1.500
3 New Machinery and Equipment 7.940 8.208 0.268
4 Office Equipment 1.000 2.020 1.020
5 Course Curriculum Development 2.800 2.500 -0.300
6 Vehicles 0.000 1.120 1.120
7 Contingencies 0.000 1.000 1.000
Total Capital Cost 12.940 17.448 4.508
Operational Cost
Utilities (Electricity, Gas, Telephone,
8 3.620 3.901 0.281
DSL, Fax, etc)
9 Training Consumables 6.910 4.750 -2.160
10 Stipends for Trainees 1.730 1.837 0.107
11 Staff Salaries 22.360 20.759 -1.601
12 POL & R&M (vehicles, gensets) 3.170 2.480 -0.690
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Wazirabad
13 Technical Experts 2.790 4.781 1.991
Office Expenses
(Entertainment, Seminars/Workshops,
14 0.520 3.182 2.662
Stationary, Marketing courier, Printing,
provisions, etc)
Maintenance of Mach/Equipment/
15 Buildings/ Furniture/water pump/ tanks 1.110 1.011 -0.099
others etc.
Professional Fee
16 (Legal, Audit, Insurance, Consultants, 0.250 0.232 -0.018
Affiliation etc.)
17 Miscellaneous/ Others 0.000 2.332 2.332
Total Operating Expenses 42.460 45.263 2.803
Total Project Cost (Rs. Millions) 55.400 62.711 7.311
Estimated Revenue 15.560 2.911 -12.649
Net Project Cost (Rs. Millions) 39.840 59.800 19.960
 Provide year-wise estimation of physical activities as per following:
Year-wise/component-wise physical activities
See Table 18
 Phasing of capital cost be worked out on the basis of each item of work as
stated above and provide as per following:
Year-wise/component-wise financial phasing
See Table 16
8. Annual Operating Cost

 Item-wise annual operating cost based on proposed capacity
utilization be worked out for 5 years and sources of its financing.
Item-wise annual operating cost based on proposed capacity utilization be worked out
for 6 years and sources of its financing. Allocation of Rs. 45.263 million is proposed
to meet operational expenses for six years. This includes both for Admin, Training
and Production activities. Please refer to table 12.
Table 12: Comparison of Revised Cost with Approved Cost

(Rs. Millions)
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Wazirabad
Sr. Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Cost
Utilities (Electricity,
1 Gas, Telephone, DSL, 0.279 0.306 0.370 0.890 0.979 1.077 3.901
Fax, etc)
Training
2 0.353 0.086 4.145 0.050 0.055 0.061 4.750
Consumables
3 Stipends for Trainees 0.265 0.310 0.070 0.360 0.396 0.436 1.837
4 Staff Salaries 0.654 0.959 2.615 3.508 6.201 6.821 20.759
POL & R&M
5 0.338 0.365 0.432 0.406 0.447 0.492 2.480
(vehicles, gensets)
6 Technical Experts 0.288 0.624 0.525 1.010 1.111 1.222 4.781
Office Expenses
(Entertainment,
Seminars/Workshops,
7 0.154 0.273 0.603 0.650 0.715 0.787 3.182
Stationary, Marketing
courier, Printing,
provisions, etc)
Maintenance of
Mach/Equipment/
Buildings/
8 - - 0.150 0.260 0.286 0.315 1.011
Furniture/water
pump/ tanks others
etc.
Professional Fee
(Legal, Audit,
9 Insurance, - - 0.050 0.055 0.061 0.067 0.232
Consultants,
Affiliation etc.)
10 Miscellaneous/ Others 0.354 0.283 0.460 0.500 0.350 0.385 2.332
Total Operating
2.685 3.206 9.421 7.690 10.600 11.660 45.263
Expenses
9. Demand and supply analysis
 Existing capacity of services and its supply/demand :

While there is enormous demand, at the moment no such facility is available in
Wazirabad.
 Projected demand for 5 years.
Demand is estimated to become double in six years’ time.
 Capacity of the projects being implemented in public/private sector.
Negligible
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Wazirabad
 Supply – demand gap.
Currently Pakistan is exporting 1.43% of the world export trade in this sector. This
sector has the potential to get its share in the world export market to 2% by FY 2014-
2015.
 Designed capacity and output of the proposed project:
Training:
 Training of 300 persons per annum at peak output. First year training of 150
persons.
 Increase in production capacity of the sector within next years, because of a new
Design and Prototyping section at CIP, because of the operational enhancement of
the CFC at CIP, because of initiating knives blade grinding, table cutlery
polishing, metal work related activities at CIP and lastly because of the start of
training for the unskilled workforce at CIP premises and retraining of semi-skilled
at their factory premises.
Die and Molds: 156 dies per year
10. Financial Plan
Sources of financing
Ministry of Industries from PSDP funding
(a) Equity:
Indicate the amount of equity to be financed from each source

 Sponsors own resources NA
 Federal government: Rs. 59.80 million
 Provincial government NA
 DFIs/banks NA
 General public NA
 Foreign equity NA
 NGO’s/beneficiaries NA
 Others NA
b) Debt
NA
c) Grants along with sources

NA
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Wazirabad
d) Weighted cost of capital
NA
11. Benefits of the project and analysis
 Financial: Income to the Project:

The center will earn estimated revenue amounting to Rs. 2.911 million through various
services of CFC, training and business consultancy.
Table 13: Estimated Revenue / Operating Income
Revenue Head Expected Revenue for 6 years

(million)
CFC operation and 2.911

Rent from vacant area
of CIP
CFC shall provide all available services to SMEs and entrepreneurs as per market
rates. It will be ensured that CFC may be operated on zero wastage. At the end of
project life, SMEs and entrepreneurs who are working on their own places and
who have not their own places for manufacturing, they may be offered to
establish their own setup (workshop) in the vacant area of CIP on affordable
monthly rental basis. All costs for the establishment/ construction of workshops
including all civil works, electrical connections from WAPDA, sanitary etc will
be borne by the owner. The revenue generated from CFC operation and monthly
rent shall be deposited in separate bank and can be utilized after getting approval
from the authorities as per requirement.
 Economic:
 Additional employment opportunities for approximately 1800 trainees.
 Improved wage rate of Rs 8,000 per employee.
 More than Rs. 80 million will be added to the economy of Wazirabad town by
the end of five years.
 By the end of fifth year economic rejuvenation of Wazirabad town will start
taking place as export will hopefully exceed the US$ 100 million mark.
 About 200 (more than 10 employees) SME cutlery units are in operation at
present. They will have institutional growth and about 30-40 more SME units
will come up in eight years’ time in formal sector
 Social:
 Technical training to approximately 300 persons per year except first year.
 Managerial seminars to approx. 120 executives per annum.
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Wazirabad
 Jobbing services will be provided to the cluster on break even + margin
rates.
 Enhanced skill for re-trained semi-skilled workforce in the SME sector.
 240 educated women will be trained in five years in packaging, accounting
and computers who will help in raising their family income.
 Improved product designs and greater variety.
 Entry of new small sized manufacturers in the export market.
 Environmental:
CIP has no harmful impact on the environment.
12. Financial/Economic Analysis (with assumptions)
 Financial analysis
 Quantifiable output of the project

 Training: 300 persons per annum
 Die and Molds: 156 dies per year
 Net present value (NPV) and Benefit Cost Ratio: 1.00
 Internal financial rate of return (IFRR)
 Internal Economic Rate of Return (IERR) 8.58%
 Unit cost analysis
 Breakeven Point (BEP): NA
 Payback period: NA
 Return on equity (ROE)
Details of Economic Analysis along with key assumptions, Expected Value
Addition and Contribution in Employment Generation are referred to table IX
 Economic analysis
 Capital Cost (Rs. million)
Table 14: Sales Tax i.e. 16%

Capital Account Sales Tax
Repair of Existing Building and Machinery
Machinery & Office equipment
Vehicles
Total
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Wazirabad
 Employment analysis
 Employment generation: Around 6500 employment generation is

expected as a result of CIP services over a period of 6 years.
 Sensitivity analysis
 Impact of delays on project cost and viability:
Cost of project may be affected in future due to currency conversion rates,

rising prices of machinery & equipment and other works.
13. Implementation ScheduleCustomer Request

 Indicate starting and completion date of the project
Starting Date: June, 2008
WithJune
Completion Date: Material
30, 2014 Without Material
14. Process Flow Chart for the Customer Assistance
CFC
(Cost Estimates)
Quotation to Customer
Acceptance Non Acceptance
.
Cash Deposit
Inward Gate Pass for Work Order

Material Deposit
(if applicable)
Work Planning
Finished Product
CFC Section
____________________________________________________________________________
Finished Goods Store
(Store)
Material Requisition Release to Customer
Material release to (Out ward gate pass)
Production
Cluster Development Programs Revival of Cutlery Institute of Pakistan Wazirabad
Financial and Economic Analysis - Revival of CIP Wazirabad

Table 15: Financial and Economic Analysis
Benefits to
Contribution
Operational Expected Net PV of Cost Ratio
Initial Projected Net Cash PV (@ in Economic PV of Economic
Year Expenses / Value Economic Economic (on
Investment Revenues Flow 10.5%) Employment Benefits Benefits
Costs Addition Benefits Costs commutativ
Generation
e figures)
Column No. 1 2 3 4 5 6 7 8 9 10 11 12
Auto-
Calculation As As As Calculatio
Criteria projected projected projected (2-3) n Projected Projected 2+6+7 col 8-3 PV(of col 8) PV(of col 3) col 10/ col 11
59.8 (59.80
0 0 ) (59.80) (59.80) - 59.80 -
0.0 (2.665 0.8 0.1
1 2 2.69 ) (2.41) 12.00 5 12.87 10.19 11.65 2.43 9
0.0 (3.156 1.1 0.3
2 5 3.21 ) (2.59) 12.30 6 13.51 10.30 11.06 2.63 5
0.3 (9.071 2.8 0.4
3 5 9.42 ) (6.72) 12.61 2 15.77 6.35 11.69 6.98 8
0.4 (7.240 3.7 0.6
4 5 7.69 ) (4.86) 12.92 1 17.08 9.39 11.46 5.16 0
0.6 (10.000 6.4 0.7
5 0 10.60 ) (6.07) 13.25 0 20.25 9.65 12.29 6.43 0
0.7 (10.940 7.0 0.7
6 2 11.66 ) (6.01) 13.58 2 21.32 9.66 11.71 6.41 8
0.7 (12.035 7.7 0.8
7 9 12.83 ) (5.98) 13.92 2 22.43 9.60 11.15 6.38 4
0.8 (13.238 8.1 0.8
8 7 14.11 ) (5.96) 14.26 1 23.24 9.14 10.46 6.35 9
0.9 (14.562 8.5 0.9
9 6 15.52 ) (5.93) 14.62 1 24.09 8.57 9.81 6.32 3
1.0 (16.018 8.9 0.9
10 5 17.07 ) (5.90) 14.99 4 24.98 7.91 9.20 6.29 6
Salvage2
value at the 1.0
end of year 10 12.16 12.16 12.16 4.48 - 0
5.8 104.7 (146.56 1.0
Totals 7 9 ) (112.22) 114.96 115.17 0
IERR 8.58%
Net Benefit to Cost Ratio (10 years)= 1.00
_________________________________________________________________________________
Assumptions
1
The Economic discount rate is assumed at 10.5% (being the weighted average yield on six month T-bills). The discount rate is based on standard practices in public
economics please see "Public Finance by Harvey & Rosen pp 248"
2
Depreciation on plant is taken on 10% straight line Method
3
Salvage Value is taken 50% of the plant & machinery value
4
Expected Value Addition is calculated as on basis of increased market value of cutlery products & increased share of exports from this cluster.
5
New Employment opportunities are worked out here by taking into account the required fresh workforce by the Cutlery Sector. Each craftsman will add an average
value of Rs.8,000 per month to its Cutlery Unit.
6. After year 6 revenues are assumed to increase at 10% and operational expenses at 10%
____________________________________________________________________________
15. Management Structure and Manpower Requirements
 Administrative arrangements for implementation of project.

MoI & SMEDA shall be the Implementing Agency for the project. BoM of CIP will provide technical guidance to facilitate
course of the project, and Project Director will handle day to day operations.
 The manpower requirements by skills during execution and operation of the project be provided.
Table No.16: Following admin and training staff will be required for project
Max.
Salary/
No. of Age Experience
Sr. Name of position Education/Skills Nature of work month
seats limit (years)
(yrs)
Management Staff
Forward Planning
B.Sc. Mech. Engg. with
1. P.D 1 45 10-12 & Organizational 80,000
MBA
Survivability
2. Accountant 1 45 B.COM or equivalent 5 Accounting 15,000
Raw Mat/Tools
3. Store In charge 1 45 FA/F.Sc. or equivalent 5 15,000
handling
Accts & Cash
4. Purchaser/ Cashier 1 45 F.A or Equivalent 2 8,000
handling
Admission and
5. Admission & Placement Officer 1 40 M.Com/ MBA 2 placement 15,000
activities
Training Staff
Mgr. Training/ Curriculum
6. 1 50 B.Sc. Mech. /MBA/MCS 8 50,000
Curriculum Dev Development
7. IT Instructor 1 45 MCS or equivalent 2 Computers 20,000
8. Instructor (Engr.) 2 45 B.Sc. Mech./Ind. & Mfg. BE having 2 Technical Trg. 50,000
_________________________________________________________________________________
(25,000 each)
i- Mechanical yrs & 10-15
Technology yrs for DAE
ii- Cutlery Field
BE having 2
9. Design Instructor 1 45 B.Sc. Mech./Ind. & Mfg. yrs & 10-15 Design Training 35,000
yrs for DAE
Demonstrator Associate Diploma
10. X 2 45 1-2 Practical Training 24,000
(12,000) Mech. or Equivalent
11. Lab Assistant (9,000 each) 1 45 I.CS or Equivalent 2-3 Lab Maintenance 9,000
CFC Service Staff
DAE Mech. or
12. Service Manager 1 55 8 Production at CFC 50,000
Equivalent
Production and
1 year Certificate in
13. Electrician 1 45 5 Maintenance at 8,000
electrical
CFC
1 year Certificate in Maintenance &
14. Machinist 1 45 5 8,000
machining Production at CFC
Business Resource Center
Marketing/
18 Business Development Officer 1 40 MBA or Equivalent 4 18,000
Business
Grade IV Staff
19 Driver (8000 Each) X 2 40 LTV license 5 Support 16,000
20 Gardener 1 55 Nil 5 Support 8,000
Chowkidar
21 X 3 45 Primary/physically fit 5 Support 24,000
(8,000)
Sweeper
22 X 2 50 Nil/ physically fit 5 Support 16,000
(8,000)
23 Office Boy 1 45 Primary/Physically fit 2 Support 8,000
CIP will be managed by professional staff. Posts of 01 knives grinding machine operator, 01 CNC wire cut machine operator,01 press
operator, 01Cutlery Polisher, 02 Welders ( Electric and Argon) have been hired under the head of technical experts and working in CFC.
____________________________________________________________________________
_________________________________________________________________________________
16. Additional Projects/Decisions Required to Maximize Socio-

Economic Benefits from Proposed Project
N/A

Certificate
 Certified that the project proposal has been prepared on the

basis of instructions provided by the Planning Commission for the
preparation of PC-I for Social Sector projects.
It is certified that the project proposal has been prepared on the basis of
instructions provided by the Planning Commission for preparation of PC-I.
Prepared by:
_________________
Khurram Shahzad
Project Director
Cutlery Institute of Pakistan
Wazirabad
Checked by:
___________________
Ashfaq Ahmed
Provincial Chief (Punjab)
SMEDA
Tel: (042) 111-111-456
__________________ ____________________________
Syed A. Iqbal Kidwai Muhammad Alamgir Chaudhary
GM (Outreach), GM (P&P)
SMEDA SMEDA
Tel: (042) 111-111-456 Tel: (042) 111-111-456
Approved by:
_____________________
Yousaf Naseem Khokhar
CEO SMEDA
Tel: (042) 111-111-456
_______________________
Aziz Ahmed Bilour
Secretary
Ministry of Industries
Government of Pakistan
_________________________________________________________________________________
ANNEXURE I
Table No. 17: Existing Machinery & Equipment purchased in the period of TDAP
Sr. Machine Description Qty Remarks

1. Lathe Machine 5ft bed length 1 Local made
2. Shaper Machine 18” Stroke 1 Local made
3. Universal milling Machine 1 Imported Refurbished
4. Drilling Machines Pedestal Type 5 Local made
5. Spark Erosion Machine 50amp 1 Local made
6. Working tables 4 Local made
7. Bench vices 10 Local made
8. Continuous Heat Treatment Plant 1 Taiwan made
9. Hollow Knife Grinding Mach 1 Taiwan made
10. Flat R.H. Knife Grinding Mach 1 Taiwan made
11. Flat L.H. Knife Grinding Mach 1 Taiwan made
12. Shearing Press 1 Local made
13. Spindle Wood Cutting Mach 1 Local made
14. Rockwell Hardness Tester (Needs Repair) 1 Chinese made
15. Stock heating furnace 1 Local made
16. Vibratory Bowl Polishing 1 Taiwan made
17. Ultrasonic Cleaning Machine 1 Local made
18. Annealing Furnace 1 Local made
19. Polishing Stands 3 Local made
20. Grinding Stands 3 Local made
21. Friction Spindle Press Capacity 300 tons 1 Taiwan made
22. Power Press 100 tons 1 Local made
26. Pedestal Tool Grinder 1 Local made
27. Welding Plant 3 Phase & 1 Phase 1 Local made
ANNEXURE II
In response to the observation by Secretary Ministry of Industries at DDWP meeting on April

3, 2007 an Independent Technical Evaluation and Advisory Committee was formed,
consisting of Mechanical Engineers with Machine Tool and Mechanical Processes
background from the Private sector.
TOR of the Committee included assessment and justification of equipment available at CIP
and further equipment required for the BMR of the Institute and to appropriately assess the
need of CFC and the need for skills enhancement of the presently available craftsmen.
Recommendations of the Committee were considered for the approval of the PC-1 document
for the Revival of Cutlery Institute of Pakistan (CIP) at Wazirabad. The Technical Advisory
Committee also worked wholeheartedly in finalizing the structure of courses required for the
Cutlery Sector.
The competent authority was further pleased to nominate Mr. Munir Ahmed (Deputy
Director General PSQCA) as Chairman of the said Committee.
Member of Advisory Committee
Contact numbers
Name of member Organization Designation
Cell No Office/home
Munir Ahmed 0321-4004001 042-5118022 PSQCA Dy. Director
(Mech. Engg) General
Munawar Hussain 0321-4256834 042-5432416 HM Engineering Managing
(Mech. Engg) (Pvt.) Ltd. Partner
Jawaid Siddiq 0300-8457597 042-6550330 Shahid Mannan Manager
(Mech. Engg) Forging (Pvt.) Ltd.
Shakeel Chaudhary 0300-9412019 042-5867874 Maqbool Brothers CEO
(Mech. Engg) (Pvt.) Ltd.
Iftikhar Ahmad
Cheema 0321-6411473 055-6692452 CIP Director(Hon.)
Mr. Khalid Kifah 0300-4270759 042- SMEDA DGM Tech.
(Met. Engg) 111111456 Services
The Technical Committee submitted its recommendations after visiting the CIP on April 16,
2007. The recommendations are as follows:
Recommendations for the Existing Machinery
Technical Evaluation and Advisory Committee inspected all the machinery. Their comments
on the existing machinery are as follows:
 All the existing machines are in acceptable condition and no machine is
surplus w.r.t Training Courses and CFC services. However, all the machines
require repair and maintenance to execute the needs of Training and CFC
services properly.
 The Cutlery sector requires streamlining in Designing and Prototyping.
Therefore, CIP should not only provide training in this context but also
provide services on sustainable basis.
 Continuous Heat Treatment Furnace will help the Cutlery Sector in
improving the quality of its products if operation of the Furnace is feasible.
Recommendations for the Training Courses
The structure of Training Courses was modified after taking consent from the Technical Evaluation
and Advisory Committee. These courses are shown in the below given Annexure III.
_________________________________________________________________________________
ANNEXURE III
With the cooperation of PCSUMEA a detailed visit of the Cutlery Industry was undertaken
and a common problem among micro, small and medium enterprises was the complaint in
this cluster of shortage of skilled craftsmen in every existing operation of the industry. So, it
was proposed that the training courses should be introduced in two phases in the CIP. In the
first phase the readily demanded courses will be offered first. These courses are listed below
in descending order of need of the Cutlery Association:
Table 18: Courses Required Urgently
Sr. Category Required persons

1 Table Cutlery Polisher 95
2 Knife Grinding Machine Operator 80
3 Process Modification 45
4 Packing and labeling 45
5 Basic Computer Courses 40
6 Knife Assembler 20
7 Welder 15
8 Power Press Operator 15
9 Machine Maintenance & Overhauling 15
10 Machinist 10
11 Knife Designing and Drafting 10
Total 360
The above mentioned courses are depicting the job opportunities for the fresh recruitment.
A point to note is that the above courses do not include courses such as Inventory Control,
Quality Management System, Purchasing, E-business, Accounting/Book Keeping, Export
Marketing, QA/QC, Productivity Enhancement and many others. The main reason is that
awareness regarding the importance of these programmes is not present among the Cutlery
industry owners in this sector. However to emphasize the need of these awareness
programmes we have included these programmes. Further job creation will occur once
awareness leads to need assessment by captains of the cluster.
The structure of Training Courses was prepared with the consent of the Technical Evaluation
and Advisory Committee in addition to the Survey of Cutlery Sector of Wazirabad and on the
basis of meetings with the members of PCSUMEA.
 Regular Certificate -Based Training Courses:
These basic courses will prepare trainees for CIP Certificate at present and Diploma
qualifications in the future. They will be structured to provide progression route for trainees’
professional development. These will start in the second project year. On the Job Training
(OJT) shall be introduced as part of the qualification to augment the relevance of the
knowledge and skills attained at CIP to work on the requirements of the SME sized cutlery
units. OJT shall enhance employability of the successful trainees.

The type and structure of the qualifications shall require comprehensive strategic planning
that shall include detailed study of the current and future needs of the local and foreign
markets by the Management Committee. Consideration for fitting these courses within the
national training programme hierarchy, recognition and/or affiliation with relevant national
and international trade bodies and training organizations, etc. will have to be done, at a
certain stage in the life of the Institute.
Table 19: Regular Certificate Based Training Programmes

Course Title Duration(weeks) Qualification Class Freq’y/6 Total
Sr.
required size yr output
1 Cutlery Designing (Basic) 16 Matriculation 15 7 105
2 Dies & Mold making 48 Matriculation 15 3 45
Cutlery Designing 16 Matriculation 15 7 105
3
(Computerized)
4 Computer basics (Boys) 16 Matriculation 15 3 45
5 AUTOCAD 16 Matriculation 15 3 45
Drawing Drafting & 24 Matriculation 15 4 60
6
Design
Inventory Control & 8 Matriculation 20 7 140
7
Purchase
Total 545
Source: PCSUMEA
i. Skills Development for Middle School Drop Outs:

Following areas are considered suitable for training scheme. Minimum education level for
these courses is primary education.
Table 20: Training programmes for Middle School Dropouts

Sr. Course Title Duration(weeks) Class size Freq’y/6yr Total
Output
Cutlery Manufacturing Knife 24 20 4 80
1
Assembling
2 Press Work / Operator 12 15 5 75
Cutlery Manufacturing Knives 12 15 5 75
3
Grinding
Cutlery Manufacturing 12 20 6 90
4
Polishing
5 Machinist 24 15 4 60
6 Welder 12 25 8 200
Total 580
ii. Skill Enhancement Program for Craftsmen:

These short-courses may range from one week to three months providing flexible attendance
and completion requirements so that already employed semiskilled craftsmen do not have to
take leave from their jobs.
Table No. 21: Detail of Skill Enhancement Programme

_________________________________________________________________________________
Sr. Course Title Duration Class Freq’y Annual Output

size
1 Knife Assembler/ Fitter 75
2 Press Operator Depends As per Target 60
Grinding Machine upon the the Oriented 60
3 evaluation Industry
Operators
4 Polish Mach Operator of skills of Selected 60
5 Machinist craftsmen. 60
6 Welder 60
Total 375
iii. Training Courses for Women

CIP will introduce programmes for women like computing, export documentation, etc.
Table No. 22: Description of Women Courses
Sr. Course Title Qualification Duration(weeks) Class Freq’y/6 Annual
size yr Output
1 Acct/ Book keeping Matric 16 20 3 60
2 Basic computer course Matric 16 25 4 100
Enhancing Secretarial Matric 16 20 7 140
3
Skills
Total 300
Source: PCSUMEA
iv. Awareness Programmes/ Entrepreneurship Development Programmes:

These short-duration programs are intended to offer focused training on various managerial,
operational and export developmental areas. These will mostly be in form of seminars on
topics such as, Production Planning and Management, Quality Control, Material Selection,
Accounting and Book keeping, Teaching Methods, Marking Ethics, Latest Cutlery Making
Techniques, Export Marketing, Inventory Control, Process waste Reduction, Product
standardization and branding, etc. Total 1800 trainees shall be passed out during six years I
different trades and training programs.
ANNEXURE V
Table No. 23: Implementation Schedule
_________________________________________________________________________________
ANNEXURE VI

_________________________________________________________________________________

_________________________________________________________________________________
ANNEXURE VII

_________________________________________________________________________________
ANNEXURE VIII
Work Plan / Cash Plan for the Year 2010-2011

_________________________________________________________________________________

ANNEXURE IX
Board of Management (CIP) Notification
_________________________________________________________________________________

_________________________________________________________________________________

ANNEXURE X
PW- Proforma-003
Monitoring Report of 2nd Quarter for FY 2011-2012
Name Of the Project Revival of Cutlery Institute of Pakistan (CIP) Wazirabad
Name of Ministry/Division/Agency Ministry of Industries from PSDP funds
(Million Rs.
Approved/capital cost Total Local FEC
39.84 39.84 0
(Million Rs.
Releases upto the end of last
Total Local FEC
financial year
10.55 1o.55 0
Expenditure upto the end of last

Total Local FEC
financial year
10.371 10.371 0
PSDP Allocations for the current

Total Local FEC
year
14.070 14.030 0
(Million Rs.
Date the
amount
Requirements/Releases Cash Amount Date of
reached Actual Expenditure
Expenditure requirement released release
the project
authorities
22-08-
i) Ist Quarter 2.806 2.806 26-08-2011 0.481
11
ii. 2nd Quarter 2.806 - - - -
iii. 3rd Quarter 3.508 0 0 0 0
iv. 4th Quarter 4.910 0 0 0 0
Reasons if funds are not released Funds of Rs. 2.806 mn for 1st quarter of FY 2011-2012 have been released.
Reasons if funds could not be fully

Funds utilized.
utilized
_________________________________________________________________________________
Financial Allocation as per Cash Plan, Releases and Expenditures
(Million Rs.)
1st Quarter
S.No Items
Allocation as per Cash Plan Releases Expenditures
1 Procurement of Machinery 0.00 0
2 Procurement of Equipment 0 0.00
3 Computer Lab and Library 0 0
4 Curriculum Development 0.0 0
5 Repair of Building 0.0 0.000
6 Repair of Existing Machinery 0 0.00
7 Staff Salaries 1.40 1.735
8 Student Stipends 0.25 0.035
9 Training Consumables 0.50 2.806 0.01
10 Technical Experts 0.26 0.528
11 Vehicle P.O.L 0.25 0.159
12 Utilities 0.40 0.0887
13 Office Equipment/expenditures 0.15 0.00
14 Generator Fuel 0.40 0.0990
15 Maintenance of mach. and Equip. 0.40 0.0230
16 Professional fee (Legal, audit etc) 0.08 0.000
17 Misc. As Per requirement 0.00
Total 2.806 2.806 2.6677
2nd Quarter
S.No Items
1 Procurement of Machinery 0 0
2 Procurement of Equipment 0 0.00
3 Computer Lab and Library 0 0
4 Curriculum Development 0 0
5 Repair of Building 0 0
6 Repair of Existing Machinery 0.37 0

7 Staff Salaries 1.40 0
8 Student Stipends 0.25 0
9 Training Consumables 0.50 0
10 Technical Experts 0.26 0
11 Vehicle P.O.L 0.25 0
12 Utilities 0.35 0
13 Office Equipment 0.10
15 Maint. of mach. and Equip. 0.35 0.00
Professional fee (Legal, audit etc) 0.06 0.00
17 Misc. As Per equirement 0.00
Total 2.806 0 0.00
3rd Quarter
S.No Items
1 Procurement of Machinery 2.2 0
2 Procurement of Equipment 0.00 0.00
3 Computer Lab and Library 0.03 0.00
4 Curriculum Development 2.63 0.00
5 Repair of Building 0 0.00
6 Repair of Existing Machinery 0 0.00
7 Staff Salaries 1.40 0.00

0
8 Student Stipends 0.10 0.00
9 Training Consumables 0.00 0.00
10 Technical Experts 0.26 0.00
11 Vehicle P.O.L 0.10 0.00
12 Utilities 0.18 0.00
13 Office Equipment 0.08 0.00
_________________________________________________________________________________
15 Maint. of mach. and Equip. 0.05 0.00
16 Professional fee (Legal, audit etc) 0.05 0.00
17 Misc. As Per equirement 0.00
3.508 0.00
4th Quarter
S.No Items
1 Procurement of Machinery 1.04
2 Procurement of Equipment 0
3 Computer Lab and Library 0
4 Curriculum Development 0
5 Repair of Building 0
6 Repair of Existing Machinery 0
7 Staff Salaries 01.40
8 Student Stipends 0.40

0 0
9 Training Consumables 1.10
10 Technical Experts 0.26
11 Vehicle P.O.L 0.40
12 Utilities 0.50
13 Office Equipment 0.08
14 Generator Fuel 0.59
15 Maint. of mach. and Equip. 0.30
16 Professional fee (Legal, audit etc) 0.05
Overall Physical Targets and Achievements up till now(In quantifiable terms)
1st Quarter
S.No Items
Unit Targets Achievements
1 Procurement of Machinery and Nos 27 20 (01 EDM Wire Cut
Equipment Machine, 02 Flexible
Shaft Hand Grinders,
01 Surface Grinder, 01
CO2 Welding, 01
Argon welding and 14
Dwg Tools and Equipt
(12 Sets + 02 Dwg
Machines Sets)) have
been purchased up till
now.
01 Roller Polishing
Machine, 01 Bowl
Roller Machine and 01
Rokwell Hardness
Testing Machine, 01
Pit furnace for Casting
& Moulding could not

be purchased due to
lack of funds
16(12 PCs, 02
Printers, 01 Scanner,
01 Laptop computer)
have been purchased.
One multimedia could
2 Computer Lab and Library Nos 18
not be purchased due
to insufficient balance
in the relevant head.
It has been adjusted
in this revised PC-1
Tender was uploaded
on PPRA website and
national newspapers
but due to lack of
funds and improper
3 Curriculum Development Course 9
bid tender was
cancelled. However in
house training
material has been
prepared
The Tender have been
opened but could not
be awarded due to
non avaialability of
funds. However,
activities for the repair
4 Repair of Building LS -
of building being
carried out on as per
requirement basis
taking into account
the budget
constraints.
17 staff salaries
continued including
PD, Service Manager,
Design instructor.
5 Staff Recruitment Nos 22 Remaining 5 staff
members
advertisement is ready
to publish in print
media.
Student Enrollment /Training 481 trainees have

6 Nos 500
Courses been paid stipend.
08 technical experts
for press work, cutlery
polishing, argon
welding, arc/ electric
7 Technical Experts Nos 8
welding, CNC
machines and knive
grinding machines
have been hired.
Likely 5 more courses
Student Enrollment /Training
6 Nos 83 will be started by the
Courses
start of Dec, 2008
Technical Expert
mentioned in the 1st
7 Technical Experts Nos 1
quarter's targets will
be hired
Appointment of Project Director

Full Time Additional Charge (NO)
(Pl. tick the relevant box)
Position held since(Pl. give date) 16-06-2010
_________________________________________________________________________________
Whether Financial/ Administra-tive

Yes No ( Pl. give details)
powers have been delegated to the
Project Director
(Pl. tick the relevant box)
(Quantify delay in
Initial Stage On Schedule
Overall Implementation of Project months)
Observations in the last Monitoring

Observations Action taken
Report and action taken
i. Nil Nil
ii. Nil Nil
iii. Nil Nil
iv. Nil Nil
Problems/Bottlenecks in the Project Implementation
Y Recruitment of Staff Delay in Release of Funds Y

Delay in consultants
Law and Order Situation
Appointment
Lack of coordination in
Management Capability
FED/Prov Govt
Land Acquisition Delay in Procurement
Turn Over of PD/Staff Delay in Civil Works
Delay in
Others
Designing/Consultancy
Indicate only one main problem from the list given below
Recruitment of Staff Y Delay in Release of Funds

Delay in consultants
Law and Order Situation
Appointment
Lack of coordination in
Management Capability
FED/Prov Govt
Land Acquisition Delay in Procurement
Turn Over of PD/Staff Delay in Civil Works
Delay in
Others
Designing/Consultancy
Observations of the Monitoring Officer
i NIL
Recommendations
i NIL
Name of Monitoring Officer
Designation/Section
Telephone No.
Date of Monitoring
Date of Reporting

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Revised 2005

REVIVAL OF CUTLERY INSTITUTE OF PAKISTAN

(REVISED March’ 2012)

Turn Potential into Profit

Cutlery Institute of Pakistan (CIP)

1. Name of the Project

3. Authorities responsible for

 If the project is included in the medium term/five year plan, specify

(b) Provision in the current year PSDP/ADP.

 In case of revised Projects, indicate objectives of the project, if different from

There is no change in objectives of already approved PC-1.

6. Description and Justification of Project

 Provide technical parameters i.e. input and output of the project.

 Provide details of civil works, equipment, machinery and other

o Machinery & Equipment

Table 3: Repair of Existing Machinery:

o Course Curriculum Development

 Indicate governance issues of the sector relevant to the project and

Steering of overall process of implementation

Day to day operations

7. Capital cost estimates

 Basis of determining the capital cost be provided. It includes

 In case of Revised Project Provide

Table 10: Year Wise PSDP Allocations and Expenditure:

o Item-wise, year-wise actual expenditure and physical progress:

Please refer to Annexure-VII for actual expenditure and physical progress.

o Justification for revision of PC-1 and variation in scope of project

o Item-wise comparison of the revised cost with the approved cost

Table 11: Comparison of Revised Cost with Approved Cost

 Provide year-wise estimation of physical activities as per following:

Year-wise/component-wise physical activities

Year-wise/component-wise financial phasing

8. Annual Operating Cost

Table 12: Comparison of Revised Cost with Approved Cost

9. Demand and supply analysis

 Existing capacity of services and its supply/demand :

10. Financial Plan

Indicate the amount of equity to be financed from each source

c) Grants along with sources

11. Benefits of the project and analysis

 Financial: Income to the Project:

Revenue Head Expected Revenue for 6 years

CFC operation and 2.911

12. Financial/Economic Analysis (with assumptions)

 Quantifiable output of the project

 Capital Cost (Rs. million)

Table 14: Sales Tax i.e. 16%

 Employment generation: Around 6500 employment generation is

 Impact of delays on project cost and viability:

Cost of project may be affected in future due to currency conversion rates,

13. Implementation ScheduleCustomer Request

14. Process Flow Chart for the Customer Assistance

Acceptance Non Acceptance

Inward Gate Pass for Work Order

Financial and Economic Analysis - Revival of CIP Wazirabad

15. Management Structure and Manpower Requirements

 Administrative arrangements for implementation of project.

16. Additional Projects/Decisions Required to Maximize Socio-

PC-1 CIP, Wazirabad 23

 Certified that the project proposal has been prepared on the