You are on page 1of 8

Techo Economic Feasibility Report (TEFR)

(2nd stage of evaluation phase)

Preliminary expenditure involved (PFR stage)

Market survey

Survey & preparation of plan

Infrastructure Site investigation

Land Acquisition
Process technology acquisition Preparation of TEFR

Searching for sources & suppliers

Consultant fee up to DPR approval

Thumb rule for the % of project cost factor Project development & DPR -2% Engineering & design Materials & equipment Fabrication & construction

-13% -55% -30%

Project scope is defined Size & methods determined

Resources investigated
Total feasibility of the proposal studied & cleared The expenditure for the preparation of TEFR worked out to

be 1% of the project cost

TEFR Improvement of PFR Project appraisal division of central planning commission

prepaid guidelines of TEFR

Objective of TEFR is to give enough data for the proper

assessment of the technical financial & economic feasibility of the proposed project.


- Administrative Ministry CPIB - Committee of Public Investment Board PIB - Public Investment Board CCEA - Cabinet Committee on Economic Analysis TEFR - Techno Economic Feasibility Report

Procedure for submission & clearance of TEFR

40 Copies of TEFR along with a memorandum should be

presented to the secretary of PIB thro secretary of AM concerned with the project The ministry concerned will examine the completeness of TEFR Format for PIB memorandum with TEFR should be presented Even for private sector project(require no financial assistance from Govts) TEFR is necessary PIB secretariat in the Dept.of expenditure forward copies of TEFR to all the appraising depts inviting their comments on it. Comments are compiled & presented plan finance

Criteria considered for appraisal of TEFR

Socio economic objectives

Economic benefit & commercial profit

Project belongs to public /private/small scale sector Fund availability Plant capacity, export potential Crucial assumptions made in the estimation Technological

& constructional aspects from investment point of view Low priority project with large financial outlays are seldom cleared by PIB

FE - Criteria for clearance:(Foreign Equity)

Resultant import substitution

Substantial cost effectiveness

Inflow of concessional financial assistance from abroad Project in core sector gets higher priority TEFR Expected to be cleared in 3 months from the time

of submission Committee/public undertakings should give remarks in its report for delays