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Development of a Scientific Final Pricing Model

The Assignment
The assignment was conducted for Karnataka Industrial Areas board (KIADB – www.kiadb.in), a statutory board established to promote industrial development and make available industrial infrastructure in the state of Karnataka, India. It involved developing an objective, rule-based Model for fixing final prices for industrial land allotted by KIADB.

MaGC Approach and Methodology
MaGC team adopted the Understand-Analyse-Develop-Pilot approach to the assignment. The methodology involved applying structured public policy tools to come up with a viable solution. A good-practices study was also undertaken to gain insights from similar attempts elsewhere. The formulation phase involved constant interactions with the client team. The finalized Final Pricing Model was piloted on a couple of client’s live cases in order to demonstrate the Model’s practical utility.

The Output
The finalized Final Pricing Model was provided in the form of a detailed set of guidelines accompanied by a simple spreadsheet tool for using the Model. The Model helped bring about uniformity and increase transparency in the final price fixation exercise.

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