This deals with a national priority industry for a medical college and teaching hospital “Gandaki Medical College Teaching Hospital & Research Centre (P) Ltd.” at Pokhara, Nepal.
GMC is located at Pokhara. Hospital and other academic buildings will be constructed in an area of about 200 Ropani (1 Ropani = 5625 square feet thus 11,25,000 square feet ) of land. These land are in less than 3 pieces and are less than 10 km apart.
The city hospital of GMC is located in the heart of Pokhara city.
MBBS and Bsc Nursing are the focal courses for this institute. Other planned courses are BDS, BSc Pharmacy, BSc Lab Technology etc.
The total fixed assets investment of the project is estimated at Rs.164 crores and working capital at appx Rs. 12 crores. Estimated long-term loan is Rs. 90 crores to finance 55% of fixed assets. Promoter's equity to finance fixed asset will be Rs. 60 crores.NRs. 14 crores will be covered by reserve and surplus funds of the project. The gestation period for term loan will be one year and will be repaid in ninth year by 2017. The accumulated interest will be paid at the start of each year from the first year of borrowing.
The project is founded on its own land. The location have sufficient land to satisfy the mandatory requisites of the affiliating university and the professional council. The construction of buildings and civil works and installation of equipment is projected for completion by the end of 2014.
The College shall allocate ten (10%) percent of seats for HMG nominated students annually free of cost except charges for the food and hostel. The hospital is legally bound to allocate ten (10%) percent of beds and provide medical services to financially weak Nepalese patients free of cost and keep additional ten (10%) percent beds and medical services at subsidized rates to Nepalese.
The project is expected to generate revenue of Rs.25 crores by the end of 2010, its first year of operation. This is expected to reach Rs. 80crores in 10th year at full capacity.
The net profit after depreciation, interest & tax in 10th year of operation is expected at Rs. 40 crores.
The Cash flow of the project shall be positive and accumulated cash balance will be Rs. 200 crores at the end of 10 year.
Net Present Value of the project is Rs. 11 crores. Over a period of 10 years at discount rate of 25 %,the Internal rate of return will be 29.21%.
The IRR (29.21%) will always be more than the Weighted Average Cost of Capital calculated at 13.31%.
The project will attract students and patients from Nepal, India and other SAARC countries, which will boost the other economic activities in the region.
Annual incremental demand for medical doctors in the country will reach to the level 5,000 by the year 2012.