The word project has wider meaning. It refers to investment in several areas of economic development including agriculture, education, transport and industry. Here we will consider Industrial Projects.
WHAT IS PROJECT APPRAISAL?
Appraisal can be defined as a second look at the project report by a person who is in no way involved in its preparation. It helps in taking an entirely independent view of the project. Appraisal is comprehensive and systematic review of all aspects of a project.
The main objective of appraisal is to improve and revamp the project with the cooperation of the promoters.
The project should be appraised within a time bound programme. Any undue delay in implementation is bound to distort profitability projections and make success of the project a difficult task.
Assistance granted by financial institutions is spread over a fairly long period ranging 10 years or even more and the relationship between the lender and the borrower is of a durable nature, the investigation and scrutiny of an application has to be more detailed and comprehensive with a view to ensure that the project is capable of coming to fruition according to the professed intention of its promoter and will thrive and grow so as to yield adequate returns for the smooth servicing of the commitment undertaken by it.
WHAT IS PROJECT APPRAISAL?
Appraisal can be defined as a second look at the project report by a person who is in no way involved in its preparation. It helps in taking an entirely independent view of the project. Appraisal is comprehensive and systematic review of all aspects of a project.
The main objective of appraisal is to improve and revamp the project with the cooperation of the promoters.
The project should be appraised within a time bound programme. Any undue delay in implementation is bound to distort profitability projections and make success of the project a difficult task.
Assistance granted by financial institutions is spread over a fairly long period ranging 10 years or even more and the relationship between the lender and the borrower is of a durable nature, the investigation and scrutiny of an application has to be more detailed and comprehensive with a view to ensure that the project is capable of coming to fruition according to the professed intention of its promoter and will thrive and grow so as to yield adequate returns for the smooth servicing of the commitment undertaken by it.