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Discuss the meaning and importance of project finance. Discuss the various sources of project financing and financial institutions structure in India

Discuss the meaning and importance of project finance. Discuss the various sources of project financing and financial institutions structure in India   Ans. Finance is the lubricant of the process of economic growth. When finance mode is available, industrial activities can be initiated which gives rise to new investment opportunities towards industrialization. The Indian financial institutions have been very important constituent of the Indian economy. This importance they have derived from their financial muscle and they have linked it to the industrial development in the country. For years now the Indian financial institutions have been the life line of credit for the Indian corporate. This has been mainly because of their strong financial muscle and the various concessions they received from the Central Government for their role. In India, special financial institutions have been developed to provide finance to the upliftment of industrial activities in all regions so ...
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What do you understand by the term technical analysis? How is it done?

What do you understand by the term technical analysis? How is it done? Ans. The success of an enterprise depends upon the entrepreneur doing the right thing at the right time. Starting a new venture is a very challenging and rewarding task. A businessman has to take numerous decisions, right from the conception of a business idea, upon the start of production. Hence, the identification of the project to be undertaken, requires an analysis of the project in depth. Therefore, a technical and financial analysis of the project has to be undertaken. TECHNICAL ANALYSIS Analysis of technical and engineering aspects is done continually when a project is being examined and formulated. Other types of analyses are dependent and closely intertwined with technical analysis. Technical analysis is concerned primarily with:  Materials and inputs An important aspect of technical appraisal is concerned with defining the materials and inputs required, specifying their properties in som...
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Situational analysis

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Situational analysis Once you have evaluated the status of your conservation targets and identified critical threats you see the recurring and most serious threats at play across your system, it is time to drill further down into the “situation” at hand. It is through this process you gain a fuller understanding of what and who is really driving those critical threats, what would motivate these conditions to change, and who your allies might be in your efforts to change the trajectory you have defined so far.A complete situation analysis involves assessing the key factors affecting your targets including direct threats, indirect threats and opportunities. Each factor can typically be linked to one or more stakeholders, those individuals, groups, or institutions that have an interest in or will be affected by your project's activities. Completing a situation analysis is a process that will help you and the other members of your project team work together to create a common...
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What do you understand by PROJECT APPRAISAL? What are the methods?

What do you understand by  PROJECT APPRAISAL? What are the methods? Ans.     Project appraisal means the assessment of a project. Project appraisal is made for both proposed and executed projects. In case of former project appraisal is called ex-ante analysis and in case of letter ‘post-ante analysis’. Here, project appraisal is related to a proposed project. Project appraisal is a cost and benefits analysis of different aspects of proposed project with an objective to adjudge its viability. A project involves employment of scarce resources. An entrepreneur needs to appraise various alternative projects before allocating the scarce resources for the best project. Thus project appraisal helps select the best project among available alternative projects. For appraising a projects its economic, financial, technical market, managerial and social aspect are analysed. Financial institutions carry out project appraisal to assess its creditworthiness befor...
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