TECHNO ECONOMIC VIABILITY STUDY(TEV Report) & (LIE) Report

Techno Economic Viability (TEV) Study provides an appraisal of technological parameters of projects and its impact on the financial viability of projects. A TEV study is a risk mitigation exercise undertaken by banks and financial institutions prior to decision taken by a bank or financial institutions on its lending decisions for projects. No project can be absolutely risk less and hence the analysis of the degree of technical risk and associated financial viability, through a Techno-Economic Viability Study (TEVS) is to assist lenders take a view on the acceptability of the degree of risk involved in a project. A TEV study takes into account an analysis of technological risk, market risk, regulatory risk, financial risk. A critical evaluation of these parameters is essential for a meaningful TEV study. Unnati Wealth, with the right skill sets to deliver, assists banks and financial institutions perform TEV studies.

TEV Study:


Techno Economic Viability (TEV) study of a project encompasses the evaluation of a project for evaluating the technical and financial information about the project, with relevant data about its technological feasibility and economic viability, into one or a few criteria on the basis of which the project is recommended for selection, modification or rejection.


Techno-Economic Viability (TEV) Study evaluation is to assist lenders to take a view on the acceptability of the degree of risk involved in a project.


It takes into account an analysis of technological risk, market risk, regulatory risk, financial risk, etc.

A critical evaluation of these parameters is essential for a meaningful TEV study:


Technical feasibility


Assessment of the available land in use for the project.


Assessment of suitability and availability of infrastructure available for the activity of the company.


Availability of skilled manpower


Assessment of existing capacity


Market potential


Present and future market scenario.


Assessment of marketing infrastructure available


The demand supply analysis


Competition in field


Financial Viability


Assessment of future cash flows and profitability of the project.


Financial viability of the unit based on the financial projections, profitability (income and costs), cash flow, IRR, DSCR, DP, MPBF etc.


Conduct sensitivity analysis of the project


Management Capabilities


Assessment of management capabilities


SWOT Analysis: SWOT analysis has been carried out to identify the key internal and external factors which are important for success of the project.


THE PROCESS OF TEV REPORT PREPERATION:


Refers to the Technical Due Diligence Report prepared by an Independent Engineer, also known as the Lender's Engineer and typically selected by the lender. Independent Engineer reviews the technical inputs (i.e. Output, Efficiency, O&M Expenses, Availability, etc.) to the Financial Model used by the lender and the developer/owner to justify the financing of the project.


The Scope of the study includes:-


Review/ Vetting of the cost of the Project and comment on its reasonableness. Vetting of contracts for various works awarded by the Company including liquidated damages and performance guarantees therein. LE will also examine the reasonability of these contract prices.

Review the necessary approvals for the construction, adequacy of clearances and any consent, license, approval, registration, permit or other authorization of any nature which is required to be granted by any statutory or regulatory authority or any third party for the construction, operation and maintenance of the project