FEASIBILITY REPORT

MEANING

It is a report that is prepared to present an in depth

analysis of project idea.
Ideally it should not be changed, but it needs an
updation over a period of time.
A project is said to be complete when each and every
aspect of feasibility report are fulfilled.
 Aspects covered in Feasibility Report

Sched Evalu
Raw Finan uling ation
Dema
Mater Techn Locati cing for of
nd
ial ical on Arran Feasib Projec
Surve
Surve Study Study geme ility t
y
y nts Repor Profit
t ability
 I. RAW MATERIAL SURVEY

Available in natural form

Available in Semi finished or Finished form
Imported
 2. DEMAND STUDY

Determination of demand : Present and Potential

Supply sources
Distribution Channels
Prices: Domestic and International Price Trends
 Sources for acquiring information regarding
demand are:

1 ●
Economic Surveys

2 ●
Annual Surveys

3 Imports and Exports

●

Statistics
 3. TECHNICAL STUDY

a. Product Pattern

b. Process Selection

c. Plant Capacity

d. Manufacturing machines and Equipements

 4. LOCATION STUDY

Considerations for selecting a location:

Sources of Raw Material
Proximate distance to market
Govt. Policies
Labour Conditions
Environmental Conditions
Availability of Land
Availability of Infrastructure
Regional Developments etc.
5. FINANCING ARRANGEMENTS

Financial
Structure
Sources of
Finance
Operating
Cost

Capital
Cost
Preparation of Cost Estimates

To determine the economic viability of project

Requires accurate estimate
No over or under estimates
Types of Estimates

Order Study Prelimi Definiti Detaile

of nary ve Cost d
Magnit Estim Estima estimat Estima
ude ates tes es tes
●
PM knows ●
PM Determi
●
Used when
●
●
Majority
product to prepares technology ne the
be carried in of work
the project prelimin is frozen cost of
of project
and capacity ary flow and equipem
of plant is
sheets implement ent,
●
Ratios are ation complete
●
To study P&M etc
used to
schedule is
●
End stage
know the economic is of Project
available
volume viability covered
 6. SCHEDULING FOR FEASIBILITY REPORT

Overall feasible time for the project is prepared

Reasonable Estimates
Prepared by project authority
Contingency provision should be kept for future
exigencies
Also prepares overall implementation schedule
 7. EVALUATION OF PROJECT PROFITIBILITY

Financ
ing
Profiti
bility

Project
Profitibility

Social
Profit
ibility
1.Payback
Period

2.Return
on
Investme
nt
3.IRR
4. NPV
5.Benefit Cost
Ratio
Social Profitability

Development of Backward areas

Employment opportunity
GDP
Savings
Optimum utilization of resources