Project Techno-Economic Viability Study- Why Do We Need It

No project can be absolutely risk free and hence the analysis of the degree of technical risk and associated financial viability, through a Techno-Economic Viability Study (TEVS) is necessary to assist lenders to take a view on the acceptability of the degree of risk involved in a project.


 

HOW TO GO ABOUT IT 

  1. First and foremost we have to gather information about the project, its promoters – their financial strength, business acumen, experience, key personnel in the organization;
  2. We have to examine the product description, types and uses, application, etc.In several cases it has been observed that the product has limited use and demand is fluctuating.
  3. Study the current market scenario, both Indian and global, market forecast – demand/supply scenario, target market, barriers to entry and competition analysis; These are important parameters and must never be ignored in a study.

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