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Case Study: The Prisons Department is considering the introduction of an offender tracking system to track the movements of offenders after their sentence. It would also help in reducing congestion in the prisons by releasing on parole those offenders who have had good conduct. The capital cost for a pilot project is estimated at about Rs200,000. The recurrent costs are estimated at about Rs20,000 per year. It is estimated that it could free up to 10 seats per year in prisons. Keeping a prisoner in jail costs about Rs50,000 per year to the state.
Question (a) What would be the technical issues to investigate to ensure that the project is effective?
Question (b) What are the operational issues in such a project?
Question (C) On what parameters are the economics of the project based?
Question (d) How sensitive is the project to small changes (10%) in these parameters?
Question (e) State any TWO items which could have an impact on the economic feasibility of the project and which have been overlooked in the above case.
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