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CNC system refers to the automation of machine tools that are operated by abstractly programmed commands encoded on storage medium, as opposed to manually controlled. In Manufacturing sectors like power equipment manufacturing, automobiles, process industry etc. CNC System based machines are used for various cutting applications like drilling, milling, turning, boring, punching, notching and for special purposes like winding, pressing, taping etc. Due to the ageing of the machine, technological obsolescence, reduced accuracy, increased number of breakdown make it necessary to think for the Retrofitting/Reconditioning/Upgradation of the machine, but there is no widely accepted model for the estimation of cost of Retrofitting/ Reconditioning/Upgradation.