This document provides a summary of key points about developing a detailed project report: - A detailed project report is a complete document that provides important information for investment decisions, planning, and implementing a project. It serves as the base document for planning and executing a project. - The report includes details on project objectives, description of the project area, existing data collection, projected costs, major benefits, and investment criteria like payback period and discounted cash flow analysis. - A well-developed report provides final cost details, expected benefits, equipment specifications, procurement information, operations and maintenance plans, and approval and clearance status to help evaluate the technical feasibility, economic viability, and risk assessment of the proposed project.

1. DETAILED PROJECT REPORT

2. DETAILED PROJECT REPORT
 Detailed project report is a complete
document for investment , decision-
making, approval, planning.
 Detailed project report is base
document for planning the project and
implementing the project.

3. OBJECTIVES
 To understand the importance of developing a
detailed project report that assure performance
for reliable quality with in optimum cost
 To appreciate that projects are site specific
 To understand importance of optimization of the
schemes , detailed cost estimate , payback period
and return on investment.
 To describe how bankable projects can help to
achieve required performance
 To understand methodology of project appraisal

4. Brief Description of Project Area
 Name of utility
 District / town (s) village covered
 Location : latitude and longitude
 Area , population , boundaries
 Climatic conditions
 Status of development. Access to electricity
 Economic structure – socio – economic features
 urban / rural

5. Data Collection of Existing Project

6. PROJECT COST DETAILS
 Basic Equipment Cost
 Consultant charges
 Duties , Taxes & Freight
a) Excise duty / customs duty/ sales tax
 Freight and Transit Insurance
 Raw materials
 Man Power cost
 Engineering Project Management.
Supervision
 Interest During Construction

7. Major Benefits from the Project

8. Project Investment Criteria
 Basically Cost – Benefits analysis
 Investment criteria can be
 payback period
Discounted cash flow (DCF) Technique
a) Net Present Worth (NPW)
b) Benefit Cost Ratio ( B C Ratio)
c) Internal rate of return ( IRR )

9. Project Investment Criteria
Payback Period
 length of the time required by the
cumulative net cash inflows to cover up
the fixed capital Investment .
PBP = Total Capital Investment / Total
cash inflow or Net benefits per year

10. Project Investment Criteria
Payback Period
 Easy to understand
 Other methods are complicated in nature
and difficult to comprehend for technical
people
 Investment should include fixed capital
&working capital
 Net benefits to be adjusted for interest and
tax liabilities

11. Project Investment Criteria
Discounted Cash Flow ( DCF) Technique
 A technique which brings past & future
cost benefits to their Present Worth ( PW)
 Take into account “ Time Value of Money
’’

12. Project Investment Criteria
 Discounted Cash Flow ( DCF)
 Past Benefits Cost – Compounding
 Future Benefits Cost – Discounting
 Past Present Future

13. DPR Structure
Title Page , Name,affliation,date etc
Acknowledgement
Content list
Abbreviation
Executive Summary
Introduction Background
Main technical & financial analysis
chapters
Recommended action plan
Appendices

14. What DPR Should ideally
provide ?
Final cost details and benefits expected
Detailed specification of equipment &
materials.
All information to prepare tender
documents.
Probable list of equipment & material
manufacturers
Project management process

15. PARAMETERS OF PROJECT
APPRAISAL AND APPRAISAL
PROCEDURE
PROJECT ELIGILITY
Technically feasible and provide optimal cost
solution for the selected alternative
Techno – economically sound with IRR not
less than 12% (Internal Rate of Return )
Compatible with expansion plan of the utility
& region
Complies with all environmental standards
guideline.
All clearances have been obtained

16. PARAMETERS OF PROJECT
APPRAISAL AND APPRAISAL
PROCEDURE
ASCERTAIN PROJECT PROFILE
Type , Purpose , Scope
Location , Access to site
Environmental Management
Technology

17. REVIEW PROJECT
Need & Justification :
 Existing and proposed system
 Demand supply scenario
 Alternative considered
Study if any carried out by State Govt /
utility
Status & Preparedness
Procurement procedures &
competitiveness

18. REVIEW PROJECT
 status & Preparedness
Procurement procedures &
competitiveness
O & M arrangements
Market & selling arrangements
a) PPA with purchaser if applicable
(Power purchasing agreement)

19. REVIEW PROJECT
 Financing plan
a) Debt Equity
b) Phasing of expenditure

20. CHECK AVAILABILITY OF
APPROVALS & CLEARANCES
Statutory Clearances such as
Land Availability & Acquisition
Forest Clearance
Highway Clearance
Electricity clearance
Fund related clearance
Pollution control board clearance etc

21. CHECK AVAILABILITY OF
APPROVALS & CLEARANCES
APPROVALS
 Board approval
 Approval of PPA
 CERS / SERC
 State government

22. ASSESS REASONABLENESS
OF COST
 Price level
 Basis and reasonableness of cost
estimate
a) Information available for similar
projects appraised in the past
b) Budgetary offers received from
suppliers
c) Similar job done by same / other
borrowers in the past

23. ASSESS REASONABLENESS
OF COST
IDC - Price variation
Contingency – Other costs

24. PERFOM FINANCIAL & RISK
ANALYSIS
Evaluate Costs & Benefits
a) Benefits
b) Reduction in losses
c) Additional Generation in MU

25. PERFOM FINANCIAL & RISK
ANALYSIS
 Specify Assumptions of base case .
Calculate FIRR, EIRR
 Financial Internal Rate of Return
 Economic Internal Rate of Return
Assess Risks :
a) Pre implementation
b) Implementation
c) Post implementation
 Perform Sensitivity & Scenario Building

26. CASY STUDY

27. THANK YOU