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Evaluate the Technical Viability of Business

The dynamics of today’s business environment have changed rapidly with the increase of risks and uncertainties. With this, it becomes vital for businesses to overcome competitors by providing value and efficiency to their clients. To survive in this arena, you need to have accurate planning and conduct analysis before plunging into the industry. The best example of this analysis is the Techno Economic Viability or TEV study.

What is TEV Report?

Techno Economic Viability Study of a project encompasses the evaluation of a project as per a systematic procedure for weaving the technical and financial information about the project, with relevant data about its technological and economic environment, into one or a few criteria on the basis of which the project is recommended for selection, modification or rejection.

Why TEV is important?

These reports are recommended by financial institution/investor to ascertain the viability of a projects. It is conducted to do diagnosis of an unsatisfactory functioning unit.

  • Reveal the strengths and weaknesses of an existing business.
  • Analyze the threats and opportunities in the current environment.
  • Streamline all the resources required to make it a success.
  • Understand the prospects of the project.

It is also 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).
  • Revitalizing distress assets.
  • Sharpen leadership skills to manage your team.
  • Cut expenses without compromising on quality.
  • Automate your business.

Components of TEV Report

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.

What is Lender’s Independent Engineer’s (LIE)??

It refers to the technical due diligence report prepared by an Independent Engineer, also known as the Lender’s Independent 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. LIE 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.

Why FinLender??

We, at the FinLender Capital, provide a comprehensive assessment of all the risk factors such as market, technical & financial and delivers customised TEV Report format that meet the client’s requirement. These reports are prepared keeping in mind specific customer’s needs and hence contains enhanced information and analytical content.

Connect with Us on TEV Study report or LIE report or TEV Report services or TEV Report Advisory or TEV Consultancy do speak with our Financial Advisor or request for a call back.

TEV Report

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.

Lender’s Independent Engineer’s (LIE) 

Report 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.

For more assistance on TEV Study report or LIE report or TEV report services in India or TEV report Advisory in India do speak with our Financial Advisor or request for a call back.

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