Various writers have classified project in different ways.

However, project is
classified mainly in following ways:

1. Quantifiable and non-quantifiable projects: The projects in which the plausible

quantitative evaluation of the benefits derived from them can be made are known as
quantifiable projects. For example, power generation, mineral development, irrigation
development, industrial development projects are the quantifiable projects. 0n the
other hand, the project in which the plausible quantitative evaluation of the benefits
derived from them cannot be made is known as non-quantifiable projects. For
example, the projects related to education, health, defenses and so on are the non-
quantifiable projects.

2. Sectoral projects:
The projects designed for the particular sector of the economy are known as sectoral
projects. According to sectoral classification projects are of following types:

(a) Agriculture and allied sector.

(b) Irrigation and power sector.
(c) Industry and mineral sector.
(d) Transport and communication sector.
(e) Social service sector.
(f) Miscellaneous sector.

3. Techno-economic projects: Techno-economic projects consist of the following

classification:

a) Factor intensity-orientation classification:

According to this classification projects are classified into capital intensive or labour-
intensive projects. The project involving large investment in machinery and plant is
known as capital-intensive project. On the other hand, the project requiring the more
use of human resource is known as labour-intensive project.

13) Causation-oriented classification:

According to this classification projects are classified into demand based or raw
material-based projects. The existence of the demand for the goods or services makes
a project demand-based. On the other hand, the availability of any type of raw
material, skill or other factors make the project raw material-based.

c) Magnitude-orientation classification:
According to this classification projects are classified according to the size of the
investment in the project, for example, large, medium and small projects.

The classification based on techno-economic characteristics is considered useful for

the evaluation of the feasibility of the project.