Techno-Economic Viability

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.

Techno Economic Viability (TEV) study of a project encompasses the evaluation of a 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. 

It assists 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.

Techno Economic Viability (TEV) Study provides an appraisal of technological parameters of projects and its impact on the financial viability of projects.

HOW TO GO ABOUT IT :

1. First and foremost we gather information about the project, its promoters – their financial strength, business acumen, experience, key personnel in the organization;
2. We 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.