CN4102 Project Formulation and Appraisal Syllabus:

CN4102 Project Formulation and Appraisal Syllabus – Anna University PG Syllabus Regulation 2021

OBJECTIVE:

 To study and understand the formulation, and costing of construction projects, appraisal, finance, and private sector participation.

UNIT I PROJECT FORMULATION

Project – Concepts – Capital investments – Generation and Screening of Project Ideas – Project identification – Preliminary Analysis, Market, Technical, Financial, Economic and Ecological – PreFeasibility Report and its Clearance, Project Estimates and Techno-Economic Feasibility Report, Detailed Project Report – Different Project Clearances required.

UNIT II PROJECT COSTING

Project Cash Flows – Principles – Types – New Project and Replacement Project – Biases in Cash flow Estimation – Time Value of Money – Present Value – Future Value – Single amount – Annuity – Cost of Capital – Cost of Debt, Preference, Equity – Proportions – Cost of Capital Calculation – Financial Institutions Considerations.

UNIT III PROJECT APPRAISAL

NPV – BCR – IRR – ARR – Urgency – Pay Back Period – Assessment of Various Methods – Indian Practice of Investment Appraisal – International Practice of Appraisal – Analysis of Risk – Different Methods – Selection of a Project and Risk Analysis in Practice.

UNIT IV PROJECT FINANCING

Project Financing – Means of Finance – Financial Institutions – Special Schemes – Key Financial Indicators – Ratios – financial cost-benefit analysis, social-cost benefit analysis.

UNIT V PRIVATE SECTOR PARTICIPATION

Private sector participation in Infrastructure Development Projects – BOT, BOLT, BOOT-Technology Transfer and Foreign Collaboration – Scope of Technology Transfer.

OUTCOME:

On completion of the course, the student is expected to be able to
CO1 Perform Formulations Of Projects
CO2 Analyze Project Costing
CO3 Evaluate Project Appraisal
CO4 Apply Project Financing
CO5 Perform Private Sector Participation & Implementation

REFERENCES:

1. Barcus, S.W. and Wilkinson.J.W., Hand Book of Management Consulting Services, McGraw Hill, New York, first edition, 1995.
2. Joy P.K., Total Project Management – The Indian Context, New Delhi, Laxmi Publications Pvt. Ltd, First edition 2017.
3. Prasanna Chandra., Projects – Planning, Analysis, Selection, Implementation Review, McGraw Hill Publishing Company Ltd., New Delhi., Ninth edition, 2019.
4. United Nations Industrial Development Organisation (UNIDO) Manual for the Preparation of Industrial Feasibility Studies, (IDBI Reproduction) Bombay, 1995.
5. Raina V.K, “Construction Management Practice – The inside Story”, Tata McGraw Hill Publishing Limited, 2005