Projects are defined as temporary systems constituted by teams to accomplish tasks within time constraints. An ongoing project is usually called a program. Projects can be quantifiable, measuring benefits, or non-quantifiable where benefits cannot be measured. Projects are also classified by sector, factors like capital or labor intensity, size, and purpose for financial institutions. The project cycle includes pre-investment, construction, and normalization phases.

3. Projects can be further defined as
temporary rather than permanent social
systems or work systems that are
constituted by teams within or across
organizations to accomplish particular tasks
under time constraints. An on-going project
is usually called a program

4. Quantifiable
and Non
Quantifiable
Projects
Sectoral
Projects
Techno –
Economic
Projects
Classification
by Financial
Institutions

5.  QUANTIFIABLE PROJECTS
The projects in which quantitative
assessment of benefits can be made.
Ex: Power generation. Mineral development
 NON-QUANTIFIABLE PROJECTS
The projects where the benefits &
outcomescannot be measured.
Ex: Heath, Education, Defense

6. Agricultural & Allied Sector
Irrigation & Power Sector
Industry & Mining Sector
Transport & Communication Sector
Social Service Sector
Miscellaneous Sector

7.  FACTOR INTENSITY ORIENTED
CLASSIFICATION
Based on the large investments in factor of
production
Plant & machinery (capital-intensive)
Human resources (labour-intensive)
 CAUSATION ORIENTED CLASSIFICATION
Demand based projects
Raw material based projects
 MAGNITUDE ORIENTED CLASSIFICATION
The size of investment classifies the project as
large scale, medium scale, small scale projects

8. All India and state financial institutions classify projects
according to their age, experience and the purpose:
 New projects
 Expansion projects
 Modernization projects
 Diversification projects
These projects are invariably are profie-oriented

10. 1.ThePre-investmentPhase
2.TheConstructionPhase
3.TheNormalisationPhase