30 Questions
What aspect of a project do technical factors relate to?
Project scope and change in technology
In project feasibility studies, what are considered economic benefits apart from financial gains?
Employment generation and economic development
Which dimension includes factors like change in policy, competitive environment, and exchange rate?
Economical
What is essential to analyze during the formulation and appraisal phase of a programme?
Risk and uncertainties
Which aspect is becoming increasingly important in project feasibility studies?
Management aspects
Under which category does 'environmental degradation' fall in the factors affecting projects?
Environmental
What factors are considered to identify the share of a proposed project in the market?
Competitive position, existing and potential competitors, capacity utilization
What is included in the study of commercial feasibility of a project?
Arriving at physical requirements of production input and matching costs with revenues
What does technical feasibility assessment involve?
Detailed assessment of production process requirements and necessary goods/services
In terms of technology, what should a feasibility report describe?
Equipment requirements, labor needs, and project inputs
Why is the location of the project given special attention in technical feasibility?
In relevance to technical requirements like equipment and inputs
What is the main purpose of determining the break-even point in a project?
To evaluate the project's profitability threshold
What is the promoters' contribution in a project?
The promoter's financial stake in the project
How is the debt-service coverage calculated in a project?
By considering profit after tax but before depreciation and interest
What indicates that a project is sound and viable in terms of cash flow?
Cash flow is 1.5 to 2 times the total amount due
When does the repayment of a loan typically start after commercial production begins?
After 2 years of commercial production
What is syndication in project financing?
Where multiple institutions participate in financing the project
What does a moratorium period in loan repayment refer to?
A period before loan repayment starts after commercial production begins
What is a de facto requirement for achieving attractive economics for large infrastructure financings?
High leverage and long-tenor financing
How can the efficacy of the remedy to Lenders/investors be negated in the event of a strategic sovereign default?
By expropriation/nationalisation of assets
What type of financing generally necessitates higher upfront transactional costs than traditional corporate lending?
Limited Recourse financing
How are additional transactional costs handled in the overall project budget for a large infrastructure endeavor?
Capitalised into the overall project budget
What type of risk can be mitigated through the use of financing products from multilateral and export credit agencies?
Political risk
What can increase the execution timetable for a Limited Recourse financing structure compared to traditional corporate lending?
Complex legal, technical, and financial structures
What is the formula to calculate the provision for escalation?
(latest rate of annual inflation) × (length of the delivery period)
What is considered an operating expense in terms of technical know-how and engineering services?
Royalty payable annually
What types of expenses should be included in the category 'Expenses on Foreign Technicians and Training of Indian Technicians Abroad'?
Travel, boarding, lodging, salaries, and training expenses
How are miscellaneous fixed assets defined in the context provided?
Assets not related to the manufacturing process
For what purpose might technical consultants or collaborators be engaged from India and/or abroad?
Choice of technology selection
What is included in the project cost related to technical know-how and engineering services?
Salaries and allowances of consultants
Test your knowledge on debt equity compositions in different categories of industries and promoters' contributions. Explore the stipulated norms set by financial institutions and the importance of promoters' financial stake in the project.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
