Project appraisal is the evaluation of a project's ability to succeed after a feasibility study. It examines key aspects like technical requirements, economic and financial impacts, the market, management, and environmental issues. The appraisal answers whether the project will meet objectives and how it compares to other options. Technical analysis evaluates raw materials, power, and transportation. Economic appraisal considers benefits to the overall economy. Market appraisal assesses demand, revenue, competition and customer satisfaction. Environmental appraisal identifies impacts and restoration measures. Financial appraisal focuses on costs, financing, profitability, and investment worth.

1. Presentation on
Project Appraisal
Presented by Group-A

2. Concept
• Appraisal is the evaluation of the overall ability of the feasible project to
succeed.
• It is done after the feasibility study of the project has been completed.
• Project appraisal is a process of detailed examination of several aspects of a
given project before resources are committed.
• Project appraisal document generally consists project introduction, objectives,
and scope, techniques of implementation, organization description, output,
and benefits of project, project monitoring and evaluation etc.
Presented by Group-A

3. Project appraisal is done to answers
following two basic questions:
Will the project as designed meet the objectives and needs
of country and society?
How does the project compete and compares with other
feasible projects in terms of funds and other resources?
Presented by Group-A

4. Aspect of Project Appraisal
Project
appraisal
Financial
Technical
Economic
EcologicalMarketing
Environmental
Management
Presented by Group-A

5. Technical Analysis
Systematic gathering and analysis of the data pertaining to
the technical inputs required.
Availability of raw materials, power, engineering services,
maintenance, transportation facility, etc. comes under it.
Presented by Group-A

6. Economic Appraisal
 Looks at the project from the viewpoint of the whole economy, asking
whether the latter will show benefits sufficiently greater than project
cost to justify investment in it.
 Focuses on the total benefit of the project and less on the costs spent
on the project.
 How far the project contributes to the development, industrial
development, maximization of employment ,etc. are view while
evaluating.
Presented by Group-A

7. Market appraisal
Concerned with marketing related issues.
Factor such as project capacity, market demand, demand
forecasts, estimated revenue, marketing programmed,
market share, competition and ability to satisfy customers
need are summarized and assessed.
Presented by Group-A

8. Management appraisal
Focuses on the different managerial aspect of the project
 project organization and management, institutional
relationships and management capabilities in planning,
organizing, staffing, leading, implementing and
controlling.
Presented by Group-A

9. Environmental appraisal
 Concerned with positive and adverse environmental impacts of the
project.
 Initial environmental examination (IEE) and Environment Impact
Assessment (EIA) is carried out and reexamined.
 Environmental restoration measures are also suggested.
Presented by Group-A

10. Financial appraisal
 Focuses on the financial feasibility of the project.
 Factors such as investment outlay, the cost of capital, means of
financing, projected profitability, break-even points, cash flows,
investment worth judged in terms of various criteria of merit and
risk.
 Sensitivity analysis and ratio analysis is also done.
Presented by Group-A