A Techno Economic Viability (TEV)
What is a TEV Study?
A Techno Economic Viability (TEV) Study is a comprehensive assessment of the technical and financial feasibility of a project. It is typically conducted by banks and financial institutions before approving a loan for a project, but can also be used by entrepreneurs and investors to evaluate the potential of a project.
A TEV Study typically covers the following areas:
This includes an evaluation of the project’s technology, production process, and its impact on the environment.
This includes an analysis of the demand for the project’s products or services, as well as the competitive landscape.
This includes a projection of the project’s costs and revenues, as well as its return on investment.
A well-conducted TEV Study can help to identify and mitigate risks associated with a project and can give lenders and investors confidence that the project is likely to be successful.
Is a TEV study mandatory for banks?
Whether or not a TEV study is mandatory for banks depends on the bank’s policy.
- However, most banks require a TEV study for loans of Rs.50 lakhs or more,
- and all banks require a TEV study for loans above Rs.10 crores.
Why is a TEV study report required for banks and lenders?
A TEV study report is required for banks and lenders to assess the technical and financial feasibility of a project, and to determine whether the borrower will be able to repay the loan out of the project’s cash flow. The TEV study report will also assess the adequacy of the collateral offered by the borrower.
CK Valuer is a consulting firm that provides TEV study services to banks and lenders. Their role is to:
- Gather the necessary information and documents from the customer and bank.
- Analyze the projections given in the project report.
- Visit the project site to verify the land, building, machinery, and other assets.
- Prepare a report on the financial and technical aspects of the project, along with their concluding remarks.
In other words, CK Valuer helps banks and lenders assess a project’s feasibility and the borrower’s ability to repay the loan.
They do this by conducting a thorough analysis of the project’s financial and technical aspects, as well as the borrower’s financial condition.
Here are some specific examples of the tasks that CK Valuer might perform:
- Review the project’s financial projections, such as the cash flow statement, income statement, and balance sheet.
- Assess the market potential for the project’s products or services.
- Evaluate the project’s management team and their experience.
- Inspect the project site and assess its condition.
- Review the borrower’s credit history and financial statements.
CK Valuer’s report will provide banks and lenders with the information they need to make an informed decision about whether or not to approve the loan.