Question

From the following data, calculate Net Value Added at factor cost :

$\begin{array}{ccc}\text{S. No.}& \text{Items}& \text{(Rs. in crores)}\\ \left(i\right)& \text{Sales}& 1,200\\ \left(ii\right)& \text{Decrease in stock}& (-)80\\ \left(iii\right)& \text{Production for self consumption}& 100\\ \left(iv\right)& \text{Single use producer goods}& 300\\ \left(v\right)& \text{Exports}& 150\\ \left(vi\right)& \text{Electricity charges}& 50\\ \left(vii\right)& \text{Excise duty}& 70\\ \left(viii\right)& \text{Subsidy}& 40\end{array}$

Answer 1

Value of output = Sales + Exports + Change in stock + Production for self consumption
= 1200 + 150 + (- 80) + 100 = Rs. 1370 cr.

Gross value added at MP = Value of output - Single used producer goods - Electricity charges
= 1370 - 300 - 50 = Rs. 1020 cr.

Net value added at factor cost = Gross value added at MP - Depreciation - NIT
= 1020 - 0 - (70 - 40) = Rs. 990 cr.