Project & Infrastructure
Finance
Session 2 – 19th June 2025
Prasad Honshetti
a problem to be solved
A market opportunity arises
The business wants to expand or innovate
Identifying Projects There’s a policy change or social demand
Costs can be reduced through automation or new tech
▪ How to identify the need for undertaking a project? when there is a gap between the current
situation and a desired future state
▪ Some of the factors which help reach a decision for undertaking a project are
as follows – Projects may be initiated due to changes in economic conditions like growth, inflation,
▪ Economic Factors income levels, interest rates. Higher incomes = More demand = Need for new projects
ESG TCS ▪ Government Policies Tax benefits, subsidies, new regulations create project opportunities. Ex- Due to the
govt’s “Make in India” initiative, a company sets up a manufacturing plant in India.
▪ Technological Trends Advancements in technology often demand or enable new projects. Ex - EV
▪ Socio – Demographic Changes Changes in population size, age group, income levels, lifestyle, etc.
▪ Competitive Scenario can create new needs.
To stay ahead of competitors, companies launch new projects. First-mover advantage
▪ Supply Chain Considerations
Projects may be needed to improve logistics, reduce costs, or avoid
disruptions.
Screening
▪ You have identified the need for a project. What next?
▪ Feasibility Analysis – evaluating the project from various angles to assess the
best outcome if the project is undertaken
▪ Market & Demand Analysis Checks whether there is enough demand for the product/service
▪ Technical Analysis Checks if the project is technically possible to implement with available resources,
skills, and technology
Environmental Feasibility
▪ Ecological Analysis impact on the environment and ensures the project meets regulatory norms.
▪ Financial & Economic Analysis
if the project is financially viable and economically beneficial
Will people buy or use what the project is going to offer
1) Market & Demand Analysis
Use existing published data to support your
market analysis.
Situational Analysis / Specification of Objectives Collection of Secondary
Empirical Study Clearly state what you aim to achieve Data
understand the current situation, with the project in terms of market
Industry trends share, sales, customer base, etc.
Past demand patterns
Competitor performance
Customer behavior Market Characterization
Managing Uncertainties in Demand Forecasting & Specification
the Forecast Predicting future demand based on
Prepare for unknown future scenarios historical data, trends, and market drivers Describe the market in quantifiable terms its size,
structure, segments, and trends
Marketing Strategy
Defines how you will sell the product/service once the project is complete.
2) Technical Analysis
▪ Manufacturing Process / Technology step-by-step process of producing the product or service
▪ Choice of Technology from which country or vendor
▪ Appropriateness of Technology Is the technology suitable for local conditions and business scale
▪ Technical Arrangements / Collaborations
▪ Material Inputs & Utilities What raw materials, power, water, and fuel will be needed?
▪ Product Mix Will the project make one or many products? A dairy project might
produce milk, ghee, paneer, and flavored milk, a multi-product mix.
Interlinkages &
▪ Plant Capacity maximum output the plant can deliver per day/month/year? Interdependencies
▪ Location Where should the plant be located?
Some activities depend on others being completed first.
▪ Machineries & Equipment List of machines required
▪ Structures & Civil Work What buildings and infrastructure are needed?
▪ Environmental Aspects Does the project comply with pollution and environmental regulations?
▪ Project Implementation Schedule
Timeline for each activity from start to completion.
assesses the impact of a project on the environment and ecology (land, water, air, flora & fauna), both before and after the project is implemented.
3)Ecological Analysis
▪ Environmental Impact effect will the project have on air, water, soil, wildlife, and public health?
▪ Clearances & Approvals Many projects require government approvals before they can begin.
▪ Part of Social Cost Benefit Analysis
Even if a project is profitable financially, social/environmental harm may outweigh
benefits.
Helps choose sustainable and socially acceptable projects.
▪ Ongoing environmental and ecological impact assessment
Environmental checks must continue throughout the project’s life.
Thank You
