The project needs to be examined with particular reference to the following points regarding the technical feasibility.
A. Location : The success of a project depends on its proper location yielding the advantages of nearness to the sources of raw material, labour, availability of power and transport facilities and market. The subsidies and other concessions available at certain specified areas are to be compared with the basic infrastructural aspects.
B. Land and building : The land should necessarily be sufficient to take care of future expansions. If the land is on lease the terms and conditions of the lease to be verified and so also the municipal laws regarding the construction of the building. Actual plant lay out is to be studied before deciding on the size of the building.
C. Plant and machinery : The important aspect to be noted in examining the list of plant and equipments is ascertain the appropriateness of the process of technology, capacity and the related sectional balance amongst various assembly lines. It has to be ensured that the cost of the equipment is based on proper quotations from suppliers and that suitable provisions have been made for insurance freight duty and transportation to site etc. adequate provisions for spare parts is also essential especially if the same have to be imported.
D. Economic size of the unit : For each project there exists a certain minimum economic size below which the project will not be viable. Effort should be made to make a mention of minimum economic size of unit in the project report. Installed capacity of the project should be more than the size of minimum economic unit.
E. Process technology : Certain products can be manufactured by using alternative manufacturing technologies. The choice and suitability of particular manufacturing technology identified by the entrepreneur for his project should be justified in the project report.
F. Technical competence : The technology may be indigenous or imported through foreign collaboration. In case of indigenous technology it should be ensured that suitable technical personnel are available. For technology acquired through collaboration tie –ups the key areas to be probed are:
The standing of the collaborators and past experiences concerning tie up arrangements with them
Adequacy of the scope and the competitiveness of the terms of the collaboration in relation to the requirements of the project, project engineering, equipment specifications, drawings, process know- how, erection and commissioning of the plant, trial operations and performance test, training facilities etc.
Performance guarantee and its adequacy in relation to rated capacity of plant and machinery.
Reasonableness of financial and other costs by way of down payments, royalties etc.
A. Location : The success of a project depends on its proper location yielding the advantages of nearness to the sources of raw material, labour, availability of power and transport facilities and market. The subsidies and other concessions available at certain specified areas are to be compared with the basic infrastructural aspects.
B. Land and building : The land should necessarily be sufficient to take care of future expansions. If the land is on lease the terms and conditions of the lease to be verified and so also the municipal laws regarding the construction of the building. Actual plant lay out is to be studied before deciding on the size of the building.
C. Plant and machinery : The important aspect to be noted in examining the list of plant and equipments is ascertain the appropriateness of the process of technology, capacity and the related sectional balance amongst various assembly lines. It has to be ensured that the cost of the equipment is based on proper quotations from suppliers and that suitable provisions have been made for insurance freight duty and transportation to site etc. adequate provisions for spare parts is also essential especially if the same have to be imported.
D. Economic size of the unit : For each project there exists a certain minimum economic size below which the project will not be viable. Effort should be made to make a mention of minimum economic size of unit in the project report. Installed capacity of the project should be more than the size of minimum economic unit.
E. Process technology : Certain products can be manufactured by using alternative manufacturing technologies. The choice and suitability of particular manufacturing technology identified by the entrepreneur for his project should be justified in the project report.
F. Technical competence : The technology may be indigenous or imported through foreign collaboration. In case of indigenous technology it should be ensured that suitable technical personnel are available. For technology acquired through collaboration tie –ups the key areas to be probed are:
The standing of the collaborators and past experiences concerning tie up arrangements with them
Adequacy of the scope and the competitiveness of the terms of the collaboration in relation to the requirements of the project, project engineering, equipment specifications, drawings, process know- how, erection and commissioning of the plant, trial operations and performance test, training facilities etc.
Performance guarantee and its adequacy in relation to rated capacity of plant and machinery.
Reasonableness of financial and other costs by way of down payments, royalties etc.