Techno Economic Viability (TEV)


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.

Relevant for whom?

This study is required by banks, Asset Reconstruction Companies (ARCs), engineering firms, and other institutions for the following purposes:

  • Project loans appraisal
  • Project financing (that includes term loans)
  • Revitalising distress assets
  • Sharpen leadership skills to manage your team
  • Cut expenses without compromising on quality
  • Automate your business

The key objective of this study is to get a detailed insight into the project descriptions, accounting statements, resource allocations, legal requirements, financial data, tax obligations, etc.

This study is mandatory before technical development and project execution to identify if the project is profitable or not.

What TEV includes?

 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.

Financial Viability of the project
This component is evaluated by inspecting the capability of the project to generate a desirable profit using achievable financial projections. To know the financial viability of the project, you need various aspects like ratio analysis, working capital requirement, term loan requirement, etc.
Financial Viability of the project
It’s conducted by identifying operational risk, market risk, financial risk and risk in resource mobilization, project execution, regulatory and political risk.
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