Primary Objective First and foremost important objective of technical analysis is to see whether the project idea is feasible or not from technical point.

Primary ObjectivePrimary Objective• First and foremost important objective of technical analysis is to see whether the project idea is feasible or not from technical point of view or not

Secondary ObjectiveSecondary Objective• To find out the most optimal formulation of the project technology, size, location etc.

• To find out the cost of project, so that profitability can be calculated.

Technology selection Material and utilities input

requirements Flexibility in product-mix Plant capacity Location and size of the project Machinery and equipment

Plant Capacity Material and utilities input

requirements Investment Outlay and production

costs Use by other units Flexibility in Product mix Latest Developments Appropriateness of technology.

Raw-materials Processed Industrial materials and

components Auxiliary materials and factory supplies Utilities

Another area to be analysed under the technical analysis is flexibility of technology and plan regarding product mix.

¶ Technological requirements¶ Input constraints¶ Market conditions¶ Investment cost & resources of

firms

Nearness to raw-materials and market

Availability of infrastructure Labour situations Government policies Other factors

Technical analysis of a project idea should include the study of required machinery and equipment to run the project. The machinery and technology required depends on the plant capacity and type of technology selected.

Material Flow Diagram Production Line Diagram Transport Layout Utility Consumption Layout Communication Layout Organisation Layout Plant Layout

To anticipate problems like to arise during the installation phase and suggest possible means for coping with them

To establish the phasing of investments taking into account the availability of finances

To develop a plan operations covering the initial period (the running - in period).

Land and site development Building and civil works Plant and machinery Technical Know-how and Engineering fees Expenses on foreign technicians and

training of Indian technicians abroad Preliminary and capital issue expenses.Pre-operative expenses Margin money for working capital Initial cash losses

Share CapitalShare Capital Term LoanTerm Loan Debenture CapitalDebenture Capital Deferred CreditDeferred Credit Incentive SourcesIncentive Sources Miscellaneous SourcesMiscellaneous Sources

Definition:

“A process of raising the funds (money) for an economically separable project, where providers of the fund look primarily cash flows and revenue of that project as a source of interest (dividend) payment and capital repayment.”

1. Equity shares2. Preference shares3. Debentures4. Bonds5. Term Loans from financial institutions6. Un-secured Loans7. Lease financing8. Deferred Credit9. Capital Investment subsidy10. Bridge finance (Bridge Loan)11. Internal accruals (in case of Expansion

Projects).