Techno-Economic Viability(TEV) Study
Real life business environment is complex with countless variables both internally and externally influencing the health of an organisation or a business or a project. A Techno Economic Viability Study (TEV Study) is a tool that attempts to foresee the future performance of an organisation or a business or a project in view of current business and technological environment to assess if the proposed business model is viable or not.
Now business needs funding. While in some case, it may be a debt funding, some other case it may be an equity infusion and yet in some other case, it may be an outright purchase of an asset. All such structuring can broadly be referred to as transaction.
The success of a transaction is directly linked to the depth and quality of diligence. A well-executed TEV Study or Techno Economic Viability Study is a critical milestone in any project appraisal or transaction advisory process, ensuring that technical feasibility, market feasibility, and financial viability are rigorously evaluated before funding or investment decisions are made.
Every transaction is unique, requiring specialist attention. It often involves multiple stakeholders, including promoter groups, investors, and lenders, each with different mandates and expectations. A TEV Study provides a structured approach to assess projects independently, ensuring that all stakeholders have the most reliable information for decision-making.
Every transaction requires detailed evaluation of techno-commercial aspects, necessitating specialized subject knowledge, skills, and sector-specific expertise. Some projects may require periodic evaluations during the funding process, while others may need assessments during the operational stage to ensure continued viability and risk mitigation.
In addition to the investors, lenders and promoters, the biggest stake holders in any business are the civil society and for business continuity, compliance with the statutory & regulatory requirements as specified by the government becomes mandatory. Evaluation of such requirements through TEV study supports all the stakeholders with a clear third party opinion.
At Adroit, we operate within the investor-lender-company triangle, providing impartial insights to support critical decision-making. We bring you accurate, on-site verified information to help assess the technical, market, and financial viability of your projects.
Why TEV Studies Are Essential
An informed decision is always preferable to an uninformed one. Techno Economic Viability (TEV) Studies act as a bridge between uncertainty and informed action. By independently analyzing technical feasibility, market feasibility, and financial viability, a TEV Study minimizes risks, reduces the probability of business failure, and prevents the creation of bad debt.
A TEV Study, which may form a part of Transaction Advisory Services, provides objective insights into project strengths and weaknesses, helping stakeholders make confident and evidence-backed decisions.
Why TEV Studies Are Essential
A comprehensive TEV Study assesses multiple aspects of a project, including:
- Technical Feasibility: Project design, technology selection, plant capacity, infrastructure requirements, utility requirement, manpower assessmentand implementation schedules.
- Market Feasibility: Demand-supply analysis, pricing trends, competition, target segments, and regulatory environment.
- Financial Viability: Project cost analysis, funding structure, projected cash flows, debt servicing capacity, and sensitivity analysis.
- Management & Promoter Assessment: Promoter experience, organizational capability, and execution track record.
- Risk Analysis: Identification and mitigation of project-specific, operational, and financial risks.
- Regulatory & Environmental Compliance: Approvals, clearances, and sustainability considerations.
Our Value Proposition
- Independent & Objective TEV Assessment: Unbiased insights for investors, lenders, and promoters.
- Sector-Specific Expertise: Covering infrastructure, manufacturing, energy, and service sectors.
- Data-Driven: Combining on-ground verification with robust financial, market, and technical analysis.
- Customized Reporting: Aligning outputs to the needs of banks, investors, and financial institutions.
- Enhanced Decision Support: Helping reduce project risks and improve bankability.
- Empanelment: Empanelled with most of the leading public sector and private sector banksand investment banks.
A TEV Study by Adroit ensures that every project is evaluated comprehensively, risks are minimized, and stakeholders can make informed, confident decisions. Our Techno Economic Viability Studies and Project Appraisal services are trusted by banks, financial institutions, and project developers for objective and reliable insights.