A practical guide · Project appraisal
TEV Report Explained:
A Practical Guide for Project Owners
What should a Techno-Economic Viability report actually tell you? Learn what to prepare, what to question and how to read the findings.
Your bank has asked for a TEV report. Before appointing a consultant, you want to know what the report should test, what information you need to provide and how to judge the finished assessment. Start there.
What is a TEV report—and what is it for?
TEV stands for Techno-Economic Viability. A TEV report examines whether a proposed project is technically workable and whether its commercial and financial assumptions support a viable operation. It connects what you plan to build with how the business is expected to perform.
Can this project work, on these assumptions—and what needs to be true for it to do so?
Project owners use the assessment to question a plan before committing more resources. Lenders use it as an input to credit appraisal. Investors and management teams can use it to examine costs, risks and the proposed implementation approach.
Its practical value is in the connections. A delayed power connection can move the start of production. That can reduce early revenue while interest and other costs continue. A useful assessment follows the effect through the schedule and cash flows.
A favourable conclusion is conditional on the project and assumptions assessed. It does not itself approve a loan or guarantee that future projections will be achieved.
IREDA publishes separate application, sanction and disbursement process flows.
Who can prepare or issue a TEV report?
A TEV report is prepared by a consultant or consulting firm with the technical, market and financial expertise needed to assess the project. The team should be able to examine the technology and operating plan, test market assumptions and review the financial projections.
For a bank submission, confirm who may be appointed, whether an empanelled consultant is required and who must sign the report with the intended lender before commissioning the work. Acceptance by one lender does not establish acceptance by another. Ask who will be responsible for the assessment and for issuing the final report.
When considering Bitcon, review our team and qualifications and empanelment information, then confirm eligibility for your specific assignment.
Bank of Maharashtra’s consultant guidance provides one example of the requirements for professional competence, empanelment and assignments. Check the current requirements with your own lender.
When should you commission a TEV study?
Start the conversation while there is still room to change the project. For a new development, that is usually once the scope, location, technology and indicative costs are clear enough to examine, and before financing and major commitments are finalised.
If the lender is requesting the report, first confirm its scope and appointment process. A study commissioned independently may need additional work—or a different appointment—to meet that lender’s requirements.
- New project: test the plan and its funding assumptions before major commitments.
- Expansion: examine the additional capacity, demand, infrastructure and cash-flow effects.
- Acquisition or change of use: assess what exists, what must change and what that means for cost and operations.
- A material change: discuss whether revised costs, technology, completion dates or market conditions require an updated assessment.
How is a TEV report different from a DPR?
A Detailed Project Report (DPR) generally sets out the proposed project and its planned economics. A TEV assignment examines whether the proposal and its assumptions are supported by the available evidence.
The two can contain much of the same information. A DPR may already include market and financial feasibility; a TEV study may review that DPR in depth. A document labelled “TEFR”—Techno-Economic Feasibility Report—can also cover substantial appraisal work. Agree the required analysis, rather than relying on the title alone.
“This is what we intend to build, how we plan to operate it and what it is expected to cost.”
“Are those assumptions supported, what risks remain and under what conditions does the project work?”
Compare Karnataka’s DPR format with SIDBI’s TEV scope, which includes reviewing the project report and supporting evidence.
TEV report format: what each section should cover
A typical TEV report covers the eight areas below. Use this as an outline for understanding the assessment; agree the required format and supporting schedules with the intended lender or recipient. Each section should answer a project question and connect to the rest of the report.
- Project and promoters
- What is proposed, who will implement it and what relevant experience and resources they bring.
- Market and sales
- Who is expected to buy, at what price and how the project could achieve its sales assumptions.
- Technical assessment
- Whether the site, technology, equipment, capacity, utilities and operating arrangements fit the proposed activity.
- Approvals and implementation
- Required permissions, their current status, the work programme and dependencies that could delay progress.
- Project cost and funding
- What is included in the budget, the evidence behind estimates and how expenditure is proposed to be funded.
- Operating and financial projections
- How production or occupancy becomes revenue, operating costs, working-capital needs and cash flow.
- Risks and sensitivity
- What changes when sales are slower, costs rise or completion moves—and which assumptions matter most.
- Findings and conditions
- The assessment, its evidence, outstanding questions and the conditions supporting the conclusion.
The exact scope changes with the sector, project stage and lender. A hotel’s occupancy assumptions, a factory’s production ramp-up and a leased office building’s usable area need different evidence.
This reading guide draws on Bitcon’s project-report structure and the published indicative scopes of Bank of Maharashtra and SIDBI.
How the study happens—and what affects the timeline
Ask for a schedule with milestones. “Three weeks” is only useful if everyone knows what starts the clock and what must be ready.
Agree the brief
Confirm the purpose, recipient, project boundary, required site work and deliverables.
Assemble the inputs
Share the documents, assumptions and estimates. Identify gaps and who will resolve them.
Assess the project
Complete the agreed site visit, technical review, market work and financial analysis.
Review the draft
Resolve factual questions, reconcile changes and make outstanding issues visible.
Issue and explain the findings
Deliver the report and supporting outputs, with query support as agreed.
For planning, allow for a process measured in weeks rather than treating a substantive assessment as a next-day document. The actual period depends on complexity, complete inputs, access to the site and the review cycle. Ask separately about preparation time and the lender’s subsequent appraisal.
As one specific example, Bank of Maharashtra’s published allocation template specifies 30 days from allotment. That is a condition in that template, not an industry-wide delivery promise.
Bank of Maharashtra’s assignment template, Annexure IV. Confirm the schedule in your own appointment.
What separates a useful report from a weak one?
The following examples are illustrative. They show how to question an assumption without needing to be a specialist.
| Weak treatment | A more useful assessment |
|---|---|
| “The plant will run at 90% capacity in year one.” | Explain commissioning, achievable ramp-up, customers and operating constraints. Test slower utilisation. |
| “Demand is growing, so the output will sell.” | Connect the sales forecast to target customers, competing supply, prices and evidence of demand. |
| “Existing equipment will reduce renovation cost.” | Check condition, capacity and suitability for the proposed use. Include testing, repairs or replacement where needed. |
| “The average repayment coverage is comfortable.” | Show each repayment period. Identify any cash shortfall during ramp-up and how it would be addressed. |
Follow the cash, not just the profit
A business can report a profit and still face a cash shortage. If customers pay after 90 days but suppliers require payment in 30, the gap needs funding. Ask where that working-capital requirement appears in the model.
Read ratios alongside their assumptions
DSCR, or Debt Service Coverage Ratio, compares cash available for debt service with the debt payments due, using the agreed calculation basis. IRR, or Internal Rate of Return, is a return measure calculated from a series of cash flows. Neither number explains the project on its own.
In a simplified illustration, ₹120 of cash available against ₹100 of debt service gives coverage of 1.20 times. If available cash falls to ₹90 with the same payments, coverage falls to 0.90 times. The useful question is what caused the change and what the project would do about it. These are teaching figures, not lending benchmarks.
Practical dos and don’ts
- Do date your inputs, disclose gaps and explain revisions. Don’t quietly replace an estimate while leaving the old number elsewhere.
- Do distinguish approvals obtained from applications submitted. Don’t treat a pending permission as a certainty.
- Do test plausible downside cases. Don’t select assumptions only because they produce a preferred result.
- Do ask for an explanation of a difficult conclusion. Don’t ask the consultant to remove an evidenced risk merely to make the report more positive.
What this looks like in real project work
These examples describe the scope of Bitcon’s feasibility and viability work. They illustrate the questions an assessment addresses.
Can the existing building serve its new purpose?
A former data centre being converted into commercial offices needs more than a new rent forecast. The assessment examined the building, proposed renovation and the suitability of existing services for office use.
The practical lesson: electrical systems, HVAC, lifts and fire systems should be assessed for condition and intended use before their reuse is treated as a saving. A site finding can change both the budget and the programme.
How does the operating plan become a financial forecast?
For the proposed 24-key serviced-apartment project, Bitcon’s assessment covered documents, site conditions, approvals, market and operating assumptions, together with projected financial performance.
The practical lesson: connect the accommodation mix and expected demand to the operating plan. Then examine what happens to cash flow if occupancy builds more slowly or costs change.
What clients valued
Client feedback, paraphrased with permission.
Bitcon’s depth of knowledge stood out. The team explained the technical complexities in simple terms and helped us understand the assessment. Their support helped us complete the financing process.
Our assignment was time-sensitive. Bitcon delivered a thorough TEV report within the agreed timeline and answered both our questions and the banker’s queries, without compromising the quality of the assessment.
What should you ask before handing over the assignment?
Use the first discussion to establish how the work will be done. These questions are more revealing than asking for a fee and delivery date alone.
- Will this appointment meet my lender’s requirements? Confirm who appoints the consultant and which scope or panel applies.
- What comparable projects have you assessed? Ask about the sector, technology and project stage—not only a total assignment count.
- Who will do the technical and financial work? Establish the responsible professionals and specialist inputs.
- What will the site assessment cover? Agree access, observations, documents and reporting.
- Which inputs do you need, and how will you handle gaps? Get a clear checklist and a single contact for queries.
- What exactly will I receive? Confirm the report, supporting schedules, draft review, exclusions and lender-query support.
- How are independence, fees and timing handled? Disclose conflicts, agree milestones and avoid making payment depend on a favourable conclusion.
For lender-appointed work, follow the institution’s own appointment and independence requirements. See Bank of Maharashtra’s consultant code for one published example.
Your TEV report checklist
Open the full preparation checklist and download a printable copy, with responsibilities and evidence checks.
Use the first list to prepare for the assignment and the second when reviewing the report. Your consultant may request additional sector-specific information.
Before the assessment
- Project brief, current stage and the lender’s scope or requirements
- Promoter background and relevant business financial information
- Land or lease records, layouts, drawings and approval status
- Equipment quotations, civil estimates and the project-cost breakdown
- Capacity, operating plan, inputs, utilities and staffing assumptions
- Evidence for prices, demand, sales, leases or customer commitments
- Funding plan, implementation schedule and known information gaps
When you receive the report
- The report describes the same project, capacity and budget that you intend to implement.
- Major assumptions have a source, a date and an explanation.
- Site observations and pending approvals are clearly recorded.
- Narrative, cost tables, schedule and financial projections agree.
- Working capital and the timing of cash receipts and payments are addressed.
- Downside cases show the effect on the project and its repayment position.
- The conclusion identifies conditions, unresolved issues and next actions.
For every unresolved point, record three things: what is needed, who will provide it and when it will be available.
An annotated sample: reading the assessment
For a detailed reference, download the fictional wire-and-cable TEV report, including technical review, financial schedules and sensitivities.
This fictional manufacturing example is a short teaching extract, not a complete TEV report or a document for bank submission. Its structure shows how evidence should connect to a conclusion.
1. The proposal
A manufacturer proposes an additional production line. The plan assumes commissioning in month six and a gradual increase in output over the following year.
2. Evidence and an open question
The equipment quotation and layout have been reviewed. The proposed power upgrade is still awaiting confirmation, and its delivery date has not been established.
3. The downside case
The model includes a three-month commissioning delay. Sales start later while pre-operating costs continue. The revised cash-flow schedule identifies an additional funding need.
4. What remains open
A final viability conclusion needs confirmation of the power-upgrade programme and an agreed source of funding for the delay case. Update the schedule and financial model when those inputs are available, then reassess the project.
A complete report would include the underlying documents, calculations, market assessment, project costs and the other work in its agreed scope. A useful summary makes those findings understandable without concealing the conditions attached to them.
Frequently asked questions
What is the role of a TEV report in banking?
A TEV report helps a lender assess the proposed project’s technical feasibility, market assumptions, costs, cash flows and risks. It is an input to credit appraisal. The lender makes its own lending decision after considering the report alongside the borrower, security and other requirements.
Is a TEV report compulsory for every project loan?
Requirements depend on the lender, financing arrangement and project. Ask your intended bank whether it requires an external TEV study, what it must cover and how the consultant should be appointed. Do this before paying for a report.
Is a TEV report required above a particular loan amount?
Confirm the threshold in your intended lender’s current policy; do not assume one amount applies to every bank or project. Ask whether the requirement depends on project cost, proposed loan amount, total exposure or the type of financing, and obtain the applicable scope and appointment requirements before commissioning the report.
Can I use a TEV report instead of a DPR?
Only if it meets the recipient’s requirements. A DPR usually sets out the proposed project; a TEV assessment examines the evidence supporting its viability. Their contents can overlap. Ask which documents and analyses the lender expects, rather than assuming the titles are interchangeable.
How much does a TEV report cost?
Ask for a scoped quotation. Sector complexity, project stage, locations, site work, data quality, specialist inputs and lender-query support affect the work involved. Compare the deliverables and exclusions alongside the fee; a price alone tells you little about the depth of the assessment.
How long will my TEV report take?
Agree a schedule for the inputs, site visit, analysis, draft, clarifications and final report. Ask what starts the clock and whether the estimate includes your responses and lender queries. A project with complete records has a different workload from one whose design, costs or operating assumptions are still changing.
Does the consultant need to visit the site?
Confirm the lender’s requirements and include the required site assessment in the scope. Documents alone cannot establish every physical condition. Ask who will visit, what will be checked and how observations will appear in the report.
Does a favourable TEV report guarantee a loan?
No. It contributes to the lender’s appraisal. The lender still assesses the borrower, proposed facilities, security, documentation and other requirements before making its own sanction decision. A viability conclusion also depends on its stated assumptions and conditions.
What DSCR or IRR should my project achieve?
There is no single approval number to copy into every project. Confirm the lender’s criteria and the calculation method. Review repayment coverage period by period. For IRR, confirm which cash flows are included and whether it represents the project or the equity investment. Test both under downside assumptions.
What if the report identifies a problem?
Ask what evidence is missing, whether the issue can be addressed and how a proposed change affects the conclusion. You may need to revise the scope, costs, schedule or funding plan. An assessment that identifies a weakness early can help you decide what to change before committing further resources.
Start with the decision you need to make.
Share the project type, stage, location and the lender’s requirements. Bitcon can help define the technical appraisal scope and the information needed to begin.
Explore Technical Appraisal & ViabilityPrepared by Bitcon editorial using project-report experience and the lender guidance linked in this article. Requirements vary by project and institution; confirm the applicable scope before commissioning a study.
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