TECHNICAL ECONOMICAL VIABILITY STUDY
TECHNICAL ECONOMICAL VIABILITY STUDY
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.
- First and foremost, we have to gather information about the project, its promoters – their financial strength, business acumen, experience, key personnel in the organization;
- 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
- 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