Techno Economic Viability (TEV) study of a project encompasses the evaluation of a project, whether a Greenfield project or a Brownfield project, for evaluating the technical and financial information about the project, with relevant data about its technological feasibility and economic viability, into one or a few criteria on the basis of which the project is recommended for selection, modification or rejection.
Techno-Economic Viability (TEV) Study evaluation is to assist lenders to take a view on the acceptability of the degree of risk involved in a project.
It takes into account an analysis of technological risk, market risk, regulatory risk, financial risk, etc. A critical evaluation of these parameters is essential for a meaningful TEV study.
- Assessment of the available land in use for the project.
- Assessment of suitability and availability of infrastructure available for the activity of the company.
- Availability of skilled manpower
- Assessment of existing capacity
- Present and future market scenario.
- Assessment of marketing infrastructure available
- The demand supply analysis
- Competition in field
- Assessment of future cash flows and profitability of the project.
- Financial viability of the unit based on the financial projections, profitability (income and costs), cash flow, IRR, DSCR, DP, MPBF etc.
- Conduct sensitivity analysis of the project
- Assessment of management capabilities
- SWOT analysis has been carried out to identify the key internal and external factors which are important for success of the project