🇮🇳India

पूंजीगत संपत्ति की अधूरी जानकारी से निवेश त्रुटि (Undercapitalization Due to Poor Asset Data)

2 verified sources

Definition

Andhra Pradesh study shows water utilities unable to make data-driven replacement decisions. Without proper depreciation accounting per Schedule II, utilities cannot accurately forecast capital needs. This leads to either undercapitalization (deferred critical replacements) or wasteful overspending on unnecessary equipment.

Key Findings

  • Financial Impact: ₹2,000-3,000 crore annually in misallocated capital; typical utility loses ₹50-200 crore per 5-year cycle in poor replacement prioritization
  • Frequency: Annual capital budgeting cycle; compounds every 5-10 years with accelerated infrastructure failure
  • Root Cause: Absence of Schedule II-compliant depreciation policy and asset useful-life tracking; manual record-keeping

Why This Matters

The Pitch: Indian water utilities waste ₹2,000-3,000 crore annually on poor capital allocation decisions. Implementing Schedule II-compliant depreciation registers and replacement triggers can optimize ₹50,000-60,000 crore capital investment, recovering ₹5,000-7,000 crore in better asset ROI.

Affected Stakeholders

CFO, Capital Planning Director, Finance Controller, Asset Manager

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

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