TEV Studies

A Techno-Economic Viability (TEV) study is a comprehensive assessment of a project’s technical and financial aspects, consolidating data on its technological feasibility and economic viability. This evaluation results in one or a few criteria that guide decisions on whether to select, modify, or reject the project.

TEV evaluations serve investors/lenders by aiding their assessment of the project’s risk acceptability. They analyze various risks including technological, market, regulatory, and financial factors. A thorough evaluation of these parameters is crucial for a meaningful TEV study.

Technical Feasibility:

• Assessment of land availability and suitability for the project.
• Evaluation of existing infrastructure and its adequacy for the project’s needs.
• Availability of skilled manpower.
• Analysis of existing capacity and its relevance to the project.

Market Potential:

• Examination of present and future market scenarios.
  Assessment of marketing infrastructure.
• Demand-supply analysis.
• Competitor analysis to understand the market landscape.

Financial Viability:

• Projection of future cash flows and profitability.
• Evaluation of financial indicators such as Internal Rate of Return (IRR), Debt Service Coverage Ratio (DSCR), Debt Payback (DP), Maximum Permissible Bank Finance (MPBF), etc.
• Conducting sensitivity analysis to understand how changes in key variables affect project viability.

Management Capabilities:

• Assessment of the management team’s capabilities to execute the project successfully.

SWOT Analysis:

• Identification of key internal strengths and weaknesses, as well as external opportunities and threats affecting the project.