Indian Institute of Management Rohtak

Draft Course Outline*

Course Title : Project Finance

Credits : 1
Type : Elective
Session Duration : 75 Minutes
Term : 6
Year : 2020
Faculty : Visiting faculty
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*Note: Kindly refer to the outline only for the broad topics and content of the course as the
final course outline will be shared by the faculty teaching the course.

Course Objectives:

The objective of the course is to enable the students with various aspects involved in Project
Finance.

The course will address the rationale for this type of financing and examine project risk
analysis, risk mitigation strategies, financing options, and legal/regulatory/industry
frameworks. The course will address cash-flow modeling concepts for Project Finance but
will not engage in the mechanics of modeling techniques.

Sessions will discuss aspects of Project Finance or specific perspectives of Project Finance of
respective stakeholder interests – such as sponsors, consultants, a government, or an NGO.
These presentations will be supplemented by HBS documenting real projects and relevant
issues.

Contents:
Unit I: Project Identification, Planning and Selection; Project Life-Cycle; Assessment and
Appraisal of Promoters and Management
Unit II: Market Analysis; Demand Forecasting
Unit III: Technical Analysis; Infrastructural facilities and inputs of production
Unit IV: Financial Analysis; Sources of Project Finance; Projected financial statements;
Project Appraisal by Financial Institutions
Unit V: Risk Management in Project Finance; Time and Cost Overruns; Post completion
performance evaluation
Unit VI: Environmental Impact Assessment; Issues in Infrastructure financing
Suggested Readings:
● Gupta, Ambrish., Project Appraisal and Financing, New Delhi: PHI learning Pvt Ltd,
Latest Edition.
● Chandra, P., Projects: Preparation, Appraisal, Budgeting and Implementation, New
Delhi: Tata McGraw Hill, Latest Edition.
● Stefano Gatti, Project Finance in Theory and Practice, Academic Press (an Imprint of
Elsevier), Latest Edition.
 ● E.R. Yescombe, Principles of Project Finance, Academic Press (an Imprint of
Elsevier), Latest Edition.
● Gray, C., Essentials of Project Management, PBI, Latest Edition.
● Gopalakrishnan, P., and Moorthy, V.E.R., Textbook of Project Management. New
Delhi: Macmillan, Latest Edition.
● Kerzner, Harold., Project Management Case Studies, John Wiley and Sons, USA,
Latest Edition.
● Machiraju, Project Finance, Vikas, New Delhi, Latest Edition

Teaching Plan:
Session Topics
1-2 Project Identification, Planning and
Selection
3-4 Project Life-Cycle
5-6 Assessment and Appraisal of Promoters and
Management
7-8 Market Analysis
9-10 Demand Forecasting
11-12 Financial Analysis
13-14 Sources of Project Finance
15-16 Projected financial statements
17-18 Risk Management in Project Finance
19 Time and Cost Overruns; Post completion
performance evaluation
Environmental Impact Assessment
20 Issues in Infrastructure financing