Project Management

Detailed Project Report

On
Sanjivani Healthcare
Hospital

Submitted by : Rupeshree Pawar 43

Soanli Suri 57
1. Project Name Sanjivini healthcare hospiatal

2. Situated at Bhopal , Madhya Pradesh

3. Purpose To run a full fledged Hospital for the

Medical care and start researchwork in the
field of healthcare.

4. Plot area cost RS.2200 /Sq. feets App.

Rs. 2400000(US $ 60000)

5. Covered area 10500 Sq. feets App.

6. Estimated cost 9530332 only App.

(US $ 238.25 Hundred Thousand)

(Land & Building with Floor Plan’s )

7. Cost of the Equipment & Machine -

+ Mobile Operation Van

9. Total Cost

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Number of Beds
No. of beds required for Medicine & Allied Specialties
S. No. Particulars Beds Total No. of Beds
1. General Medicine 50
2. Pediatrics 45
3. Chest & TB 15
4. Skin and STD 15
5. Psychiatry 15
145

No. of beds required for Surgery & Allied Specialties

S. No. Particulars Beds Total No. of Beds
1. General Surgery 70
2. Orthopedics 30
3. Ophthalmology 20
4. ENT 15
135

No. of beds required for Obstetrics & Gynecology

S. No. Particulars Beds Total No. of Beds
1. Obstetrics 50
2. Gynecology 32
3. Postpartum 08
Total 90 90

Grand Total
1. Medicine & Allied Specialties 145 beds
2. Surgery & Allied Specialties 135 beds
3. Obstetrics & Gynecology 90 beds

Total Beds : 370

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Site Investigation :
Madhya Pradesh is one of the largest states of the
Republic of India. The state is marked with a complex social
structure, a predominantly agrarian economy, a difficult and
inaccessible terrain, and scattered settlements over vast area that
togetherpose several formidable problems to health service
delivery systems. According to the 2001 census, Madhya
Pradesh has a population of about 6 crores, which is around
6% per cent of the country’s population. Ranking 7th in terms of
population size and 23rd in terms of population density among the
35 states and union territories, it is a large state with a widely
dispersed population and relatively low density. From the point of
view of per capita income, literacy, urbanization, infrastructure
facilities and other development indicators, Madhya Pradesh
belongs to the category of less developed states of the country. In
spite of the best of efforts on behalf of the Government institutions,
the people of the state are not satisfied and the health status,
though improved from yesteryears, is far below when compared on
the national scale (as reflected by the health indices). The
government is not getting fair returns on its investment in health
care and there is widespread dissatisfaction with the access and
quality.
On the other hand, there are serious questions about the
economic access and quality of health care in private sector,
particularly in the rural areas. The problem is compounded as
government does not have an effective monitoring, surveillanceor
control function with regard to private health care. The Madhya
Pradesh government has decided to provide necessary equipment
and adequate staff to the five medicalcolleges in the state. The
state has five government medical
colleges - one each in Bhopal, Indore, Jabalpur, Gwalior and Rewa.
In April 2006, the state government had sanctioned about Rs.436
million for the purchase of necessary equipment to overcome the
shortcomings pointed out by the MCI. It had also sanctioned 3,403
posts of teaching and non-teaching staff to fill
the vacant posts of professors and assistant professors.

Land details:

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 Land : 10.64 Hectares (26.29 acres) acres of developed, free
hold land available at J.K town, Sarvadharam, C sector, Kolar road,
Bhopal 462 016,M.P.

Techno-Economic Feasibility Report

Name and Address of the Medical Hospital:Sanjivani

healthcare hospital

Market Survey and Environmental Analysis

National Medical Education Policy

As on today the Government of India is having an improve National
Policy on Medical Education. India’s National Health Policy does
include Medical Education and much importance has been given to
NGOs.

Medical Manpower in India

Progress in any field requires manpower, and so is for Medical field
also. The country now requires 6 lakhs number of qualified
Medical doctors to provide the delivery of Medical health care
program to our ever increasing population, as per
planning commission of India.

Present Health Care Scenario of the State

The State now has a fair network of Medical and Health Institutions
both in rural and urban areas of the State. Each district and sub
district hospitals provide a wide range of curative medical care and
diagnostic services but there are no provisions for secondary to
tertiary level of medical and clinical services in this district and sub
district level hospitals. These Government Hospitals provide basic
medical services only to the scattered population but preventive
medical health care is yet to be introduced or implemented at the
State level.

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 DOCTOR NURSES DENTALSURGE PARAME
S ON D
NURSES
STAFF
AVAILABILIT 4000 12000 500 15000
Y IN THE
STATE
REQUIRED 7500 22000 1000 25000
DIFFERENC (3500) (10000) (500) (10000)
E

There are about approx. 2500 beds in government sector and

approx. 3000 beds in private sector in Bhopal. But in-spite of
having all other amenities planned relatively well, Bhopal is lacking
drastically in providing quality healthcare and still people need to
go out to places like Indore, Delhi, Bhopal, etc for treatment.
The quality of services in private sector for paying population is not
up to the mark. The population of Bhopal is approx. 21 Lacs and
the ratio of bed to population is 1:381.81 Also, the Hospital would
serve the growing population of Bhopal as well as Kolar Division
(which is becoming a modern suburb of Bhopal District) in the
coming years. The people will get modern health treatment under
one roof. Thus, although, opening up of a Medical Institution and
Hospital in
Bhopal would not bridge the huge gap but will definitely contribute
its part for the service of needy patients of Bhopal, in particular and
states at large. The proposed Medical College will be strictly set up
as per the norms of Medical Council of India and will be affiliated to
Barkadullah University, Bhopal. In the light of above, it is clear that
there is urgent need of a Medical Hospital in the area where we
have proposed the project.

Requirement and sources of service facilities

like power , water ,steam ,compressed air ,
transport facilities:

Topography & Location

The proposed Medical College is to be located at Kolar road,

Bhopal, the capital city of Madhya Pradesh, is well connected with
Rail, Road and Airways to each states. All major trains
coming/going to South and Western states are halting at
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Bhopal. The state has a NH-12, the national Highway. Kolar Area,
where the proposed Medical College and the Hospital is supposed
to be built, is a newly developed Municipality Council and rapid
colonizing developments are in progress. The proposed hospital is
being developed in to a self-sufficient campus in all respects, an
oasis of peace and tranquility, away form the noise and pollution of
the urban city atmosphere. The total site is devoted to promoting
excellence in any scientific endeavor, by comprehensive
ergonomic, environmental planning for buildings, roads, water
supply, drainage, swage disposal, lawns, gardens and parks so that
to ensure 100% space utility. The buildings are planned and
constructed at strategic locations to optimize the functional
efficiency of various facilities and its utilization. The entire campus
is now present as a good landscape.

Plot Size
Available land for the proposed Medical College and its teaching
Hospital is 10.64 hectare (26.29 acres). The construction will have
Medical College, Hospital, Residential Quarters, Auditorium, Sports
Ground and other necessary amenities.

Permissible FSI
The permissible Floor Space Index (FSI), allowed by the local
authority in the ratio of 1:2.The hospital campus is having
adequate land so that it can meet the requirement of FSI. Ground
Coverage
The ground coverage
The built up area permissible by local authorities for the
construction of the required building over the available land is up
to] 70%. But the planning has been done so that the ground
coverage will be about 30%. The proposed Medical Hospital will
have a ground coverage about 33% or more.

Building Height
The building height as permitted and determined by the local
authorities for the construction of the Medical College and Hospital
building is up to 60 ft. however this height may not be required to
meet the stationary built up area requirements required for
proposed Medical College and Hospital.

Road Access
The Kolar Area is well connected with the other localities of Bhopal
township. The Key plan shows the location in residentially
populated area. The proposed Medical Hospital campus is situated
at Kolar road and the he present location is within the city of
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Bhopal and well connected with all the major roads and highways
The present location is very well connected by a double lane road
and sufficient number of single lane sub-roads with inters
connections. These roads are developed by the State Highway
Authorities, Municipal Corporation etc. In addition to the public road
the campus is also having its own internal roads with external
linkages almost in all the directions.

Availability of Public Transport

The available public transport facilities are excellent and these
transport systems are running most efficiently. The Hospital
location is well-connected though best public transport buses,
which link the nearby areas in a most adequate manner.
Private Bus Services and Bhopal City Link Bus Services regularly ply
in this locality from 6am in the morning. Auto Rickshaws are
available round the clock the area. The city of Bhopal, known as its
Capital city of M.P , is having Bus
Stand, Railway junction / stations, and an Airport. The present
location of the hospital is adjacent to the major Kolar road. In
addition Trust and its Medical College and Hospital will be having
its own transport facilities for both the staff and the patients. There
will be Ambulances and mini busses ply between the major
junctions of the city to and fro the Hospital campus.

Electric Supply
At present the Hospital campus have an electric connection with
the capacity 300 KV to start with. The connection has been
sanctioned and installed by State electricity board (MPSEB), with
the approval of State Government and its authority.The campus
developed by the Trust is also having a separate electrical sub-
station with internal cablings and the campus is presently having
continuous power supply.In addition to the government electrical
power supply the campus is also being served with adequate
number of DG sets (2 for Hospital - 100KvA and 250KvA).
Water Supply
There is an adequate amount of ground water availability sufficient
to meet the day-to-day requirement of both the Hospital and the
College. The campus shall be having 1 well and deep bore-well with
the capacity of 3 lakhs litter of a sump with pumping station and
another 3 lakh litter of a huge overhead tank. Inside the campus all
the required plumbing works and pipe lines with required taps and
check valves have been completed as a part of the original master
planning along with the drainage system and sewerage line.

Sewage Connection
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In the master planning adequate arrangements have been done for
disposal of sewage and waste. The wastewater / effluent water /
spillage water and other disposal will flow from the septic tank
provided at the appropriate places through and under ground
drainage system including rain water drainage cum harvesting
system Solid waste disposal has been done in co-operation with the
local bodies / municipality / authority. For the disposal of
biomedical waste the common incinerator has been installed by the
local authorities and used by all the hospitals of the city. The
proposed Hospital shall have valid tie up program
for Bio Medical Waste Disposal with this local body approved
incinerator and other common facilities.\ The bio-degradable
wastes are disposed as a municipal waste but the non degradable
waste are properly disinfected and then disposed off for recycling
(paper, plastic etc.).

Tele-Communications
The present Hospital and College campus are having adequate
telephone connections and telecommunication systems.

Power Supply
The main source of electrical power supply is from the State\
electricity board. As the area has been situated in a local municipal
area, the EB is supplying 300 KvA electrical sub station at the
present location being upgraded to 1100 KV. In addition the
hospital will be having stand by generators with adequate power
backup during upgradation program

Vertical transportation
In addition to number of elevators a very good ramp has been
provided in the Hospital complex which is at present serving the
purpose of vertical transportation for patients and various Hospital
services. However the Hospital

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has been equipped with adequate number of bed elevators,
passengers lifts etc.

Waste disposal
Proper arrangements have been made for the disposal ofsewage and
waste. The waste water and other disposals is now flowing in to big
size septic tank located at the appropriate places, just outside the
Hospital complex through underground drainage system. A common
oil fired incinerator available in Bhopal city I is being utilized for
Hospital waste management system. Solid waste management has
also been done with the help of local municipality. Additional and
modern Hospital waste management syste will be utilized in near
future.

Other Engineering services

Electrical – day to day repair and maintenance of all electrical supply,
UPS, maintenance of DG sets electrical points, lighting, fans, exhaust,
geyser etc.
Electronics – there is separate biomedical engineering section for
management and maintenance of electronic equipments and
instruments.
Civil and Mechanical – all civil services of the Hospital like masonry,
carpentry, plumbing and other civil and mechanical engineering
services including transport and ambulance services etc. will be
provided and upgraded.
Air conditioning – the engineering department will also maintain all
the air conditioning system in the Hospital
complex.
Computer engineering – this department is planning to upgrade the
entire Hospital management system and Hospital information system
with ultra modern computer network system and software
technology so the entire Hospital will be
computerized in due course.
Environmental engineering – this department will mainly follow the
rules and Regulations of Govt. of India and the State Government
for Hospital waste management and its overall policy.
Campus development and horticulture – supervised by the project
architect company the Hospital campus will have a good landscape
and greeneries. The total area of about 35 acres will be developed in
to a full fledged campus.

PLANT AND LAYOUT :

Ancillary Buildings and Miscellaneous
· Animal house
· Electric Sub Station / Power House
· Central workshop
· Auditorium & Gymnasium

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· Play grounds with stadium
· Other facilities like internal roads, car parking, lawns
etc.

Buildings for Staff Quarters

Phasing and Scheduling – of Medical College

This phasing and scheduling has been started as per the given
month wise schedule of activities and are in progress.

Commencement and Completion of Building Design

Completed as per the following schedule given below.
Local Body Approvals
Approved by the local Panchayat as per the following schedule.
Civil Constructions
Already started and Phase – I completed, Phase – II & Phase III
under progress.
Provision of Engineering Services
Provided as a part of the total building Program.
Equipments
The required instruments and equipments for both the Medical
College and Hospital have been purchased and are fully functional
as per the given schedule.
Recruitment of Staffs
Recruitment of staff for Phase – I has been completed.Recruitment
of rest of the teaching staff will be completed asper the given
schedule.
Phasing of Commissioning
Phase – I - Pre-Clinical departments of the Medical hospital (January
2008 – July 2009) (after obtaining the letter of intent).
Phase – II - Para-Clinical department of the Medical hospital
and expansion of the Teaching Hospital (July, 2009 –December,
2011).
Phase – III - Completion of the all-Clinical departments of the
Hospital (January, 2012 – December, 2013).
Phasing and Schedule - Medical Hospital
This phasing and scheduling has been started as per the given
month wise schedule of activities and are in progress.
Commencement and Completion of Building Design
Completed as per the following schedule given below.
Local Body Approvals
Approved by the local body as per the following schedule.
Civil Constructions
Already started and Phase – I completed, Phase – II & Phase III are
in progress.
Provision of Engineering Services & Equipments
Provided as a part of the total building Program.

Manpower requirement :

Category wise staff strength *

Doctors
Nurses
Lab Tech.
X-ray
Other Staff
The Hospital ‘s total requirement of the staff of about 98 .

Plant and equipment

Hospital
Hospital Medical Services and Various Departments (As per
Recommendation of MCI)
Hospitals Supportive Services
Hospital Engineering Services
Hospital Administrative Services
Super Specialty Hospital Services

Instruments & Equipments

Instruments & Equipments for Hospital
Major Hospital Equipments – Department wise including OT and ICU

Plants and Machineries

Plants and Machineries for Hospital
Plants & Machineries for Central Hospital Kitchen and Dietary
Services
Plants & Machineries for Hospital Laundry and Linen Services
Plants & Machineries for Hospital House Keeping Services
Plants & Machineries for Central Sterile Supply Department (CSSD)
Plants & Machineries for Central Medical Gas Supply
Hospital Engineering Services / Workshop – Instruments &
Equipments
Transformer and Electrical Fittings including Generators (DG Sets),
UPS etc.
Air Conditioning Plant and Refrigeration, Water Cooler, Air Cooler
etc.
Mechanical Engineering – Water Treatment Plant, Boilers, Steam
Plan Elevators (Lift) etc.

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Fire Fighting Equipments
Civil – Plumbing, Water Supply, Sewage, Drainage, Masonry,
Carpentry, Painting
Telecommunication Facilities
Sewage Treatment Plant – If required
Incinerator – Biomedical Waste Management
Hospital Solid Waste Management

Furniture & Fixtures

Hospital Furniture’s & Other Fixtures
Hospital Furniture 550+ beds – Sets of Hospital Beds including
mattresses, pillows and
Hospital Linen
Other Fittings
Intangibles / Misc. Fixed Assets
Intangibles for Hospital
Computer Hardware – sets of Computer for each Department wise
and room wise
Computer Software
Computer Accessories including Fax
In house Video, TV, PA System
Ambulance and Transport

Preliminary & Pre-operative Expenditures

Hospital
Mobilization of Resources
Financial Consultancy Services
Feasibility Studies and Reports
Hospital Consultancy Charges
Hospital Architectural Planning and Designing
Engineering Consultancy Charges
Contingencies
Margin money for Performance Bank Guarantee (PBG) as per the
Statutory requirements of Medical Council of India (for Rs.700
Lakhs).Other Contingencies Escalation in the Project Cost, Inflation
rate etc.
Research and Development

Working Capital Management

Working Capital / Operation Management Capital for Hospital
Interest on Project Finance - Capitalization
Interest Capitalized during the Preoperative Period
Project Components / Project Activities – Critical Pathway Method
(CPM) Chart

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 Means of Finance & Project Finance –
• Corpus Fund by the Society
• Donations / Contribution to the Society
• Project Finance
• Term Loan from Financial Institutions
• Grants / Aids from Government / NGOs
• Suppliers Credit / Deferred Payment
• Other Sources, if any
Revenue Assumption from the Hospitals:
Income from OPDs
Income from IPDs
Income from Diagnostic Services
X-Ray & Other Radiological Services (USG, CT, MRI)
Hospital Laboratory Services
Treatment Charges / Service Charges / Hospital Tariff
Medicine & Allied Subjects
Surgery & Allied Subjects
Obstetrics & Gynecology
Specialty Treatments – ICU / Emergency Casualty Services
Miscellaneous Medical Services – Physiotherapy etc.
Income from the Industrial Sectors – On reservation basis
Other Miscellaneous Income from the Hospital – Rental Incom from
Dharamsala, Guest Houses, Community Center, Hospital dietary
services etc.

Expenditure Assumption for the Hospitals –

Wages and Salaries
Non Teaching Technicians
Staff Nurses
Other Contract Labors
Salary Structure and Other Benefits / Statutory Obligations
Establishment Charges – Engineering Services
Electrical Engineering Services
Bio Medical Engineering
Air Condition Engineering
Water Supply & Sanitary System (Sewage & Sewerage)
Telecommunication
Solid Waste Management
Bio Medical Waste Management
Hospital House Keeping, Environmental Protection and Control
Hospital Building Repair and Maintenance including Elevators
Expenditure for Hospital Kitchen, Laundry and Hospital Linen
Services

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Hospital Central Medical Gas Supply and Central Sterile
SupplyDepartment Hospital Safety and Security Systems
Chemicals, Consumables and Disposables for the Hospital
X-Ray Film and Chemicals
Laboratory Chemicals and Consumables
Surgical Disposables
Miscellaneous Items
Travel & Conveyance Expenditures
Ambulance Services
Other Transport Arrangement for Doctors & Patients
Fuel, Repair and Maintenance of Vehicles
Conveyance allowances to Consultants and Employees
Hospital Public Relations Department / Guest Relations
Stationeries, Printing and Office Expenditures
Department of Medical Records / Medical Transcription
Hospital Information System (HIS)
Hospital Marketing – Advertisement and Marketing
Hospital Administrative Service Expenditures
Office of the Chairman
Office of the Medical Superintendent
Office of the Nursing Superintendent
Office of the Hospital Finance Management Unit
Office of the Hospital Information System
Department of Human Resource Development (HRD)

Details of Cost of Construction

An effective & efficient system control process / proposal to
counter the unforeseen escalation in the cost of construction : will
follow the All India Price Index for the control of the escalation of
the cost if required.
Material Cost Variation :
Vm = (W * X / 100) * (M – Mo / Mo)
Where
Vm = increase / decrease in cost
W = 85% cost of work done
X = component cost of material as percentage of work done
M = Average of all India whole sale price index published by
ministry commerce & industry, the date of preparation of the
previous bill of all commodities published by the ministry of
commerce and industries the date midway between preparation of
last bill and present bill.
Mo = All India whole sale price index for all commodity published
by ministry of commerce and industries on the last date stipulated
for receipt of tender.

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Variation in Labor Price :
VL = (W * Y / 100) * (L1 – L0 / L0)
VL = Labor increase / decrease
W = 5% work done
(15% is assumed as profit)
Y = 25% of work done
(Labor percentage)
L1 = Consumer Price index for industrial labor declared by the
labor behavior of India on the date midway between the date of
preparation of last bill and present bill.
L0 = Price declared on the last date stipulated for the receipt of
tender.
Year Rs. / Sq.mtrs. Rs. / Sq.ft.
Year – I 6000 557.62
Year – II 6300 585.50
Year – III 6615 614.77
Year – IV 6950 645.91
Year – V 7300 678.43
Average 6633 616.44
Construction cost has been calculated at the rate or Rs.6000 /- per
sq.mt. at the
very first year. Cost including cement and steel is in between
Rs.558 and Rs.617.
The cost excluding cement and steel is in between Rs.448 and
Rs.497(tentative).
On the other hand the construction cost for the cement and steel
will constitute
about 70-75% of the construction cost estimates.

Note :
1. However no gross escalation is anticipated in he first 2 years of
the Project period.
2. The major building portion would likely to be completed in the
first 2 years of the project period.
3. H.K. Kalchuri Education Trust, Bhopal will enter into a very valid
contract and construction documentation with all legal formalities.
1. Total Cost :
Total Cost = Material Cost + Overhead Cost or Labor Cost
TC = MC + LC
2. Cost of Labor & Material :
a) Labor – 30% to 35%
b) Material – 65% to 70%
3. Direct and Overhead Costs :
a) Direct Cost – 85%
b) Overhead Cost – 15%
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4. Cost of Construction :
a) Cost of Foundation – 10-15%
b) Cost of Superstructure – 85-90%
5. Cost of Second Storey / Further floors
– 85-90% for first floor
6. Percentage break-up of Building works (Excluding
Sanitary & Electrical
Works) :
1. Earth work and evacuation – ½ %
2. Concrete & foundation – 5%
3. Damp proof course – 1%
4. Brick work – 34%
5. Roofing – RCC – 20%
6. Flooring (ordinary) – 6%
7. Doors and Windows – 16%
8. Plastering and Painting – 10%
9. External finishing and coloring – 2%
10. Miscellaneous – 5 ½ %
Total – 100 %
7. Cost of Materials and Labor Percentages
1. Bricks – 22%
2. Cement – 12%
3. Steel – 10%
4. Timber / Aluminum / Cast Iron – 10%
5. Other Building Material – 14%
6. Labor – 30%
7. Project Management – 2%
Total – 100 %

Social Profitability of the Project, Summary and

Conclusion
Social Profitability
The whole project in this category of ‘non-economic’ view, which
project do not involve a formal economic analysis and the decision
to start the new college must be based upon the justification of the
total cost and just the proposed project.
Capital expenditure analysis’ also called ‘Capital investment
decision’ is basically the examination of how well the expected
feature returns justify the related present investment, which is also
known as the ‘Capital budgeting’.
The proposed project and the investments is linked with certain
definite ‘social objectives’. The investment in this ongoing process
with an objective of ‘social profitability’ incurs capital expenditure
for the first two years and it requires a definite investment
18
decision. A capital project is expected to bring in benefits in future
years which may be extended to a long period, like a very long
period of a
hundred years. Such projects require the commitment of funds for
feature years and thus plot the promoter’s future direction by
determining its services, markets and technology in the health care
industry.
Flowing from the above, another important reason for capital
investment decision, relates to the facts that it is often difficult, if
not impossible, to reverse a capital project decision involving a
huge investment without considerable additional expense. So there
is “No going back of the project”. In the capital budgeting process
the following ‘phases’ and their ‘requirements’ are carefully
analyzed and summarized as follow :
‘Identification of Investment opportunity’ :
Imaginative scanning of the environment seems to be
encouraging. Considering the Economic and Tax factors - because
the promoter is Trust, hence there are no threats but full of
opportunities. Clinical materials are plenty.

‘Formulation’ of the Project’ :

The Trust having identify the investment opportunity and then
translated into the project proposal specifying important aspects of
the technology, the demand, the cost estimates and financial
requirements etc . Hence the project formulation has been
prepared as the feasibility and the relevant details are given in this
booklet at the appropriate places.
‘Appraisal’ of the Project :
Various analyses and evaluation of the project details ascertain the
following :
The technical parameters are realistic and optimistic. The financial
cost and returns are properly estimated and the financial viability is
highly appreciated. Commercial analysis to determine the service
specification, the marketing strategy and the organization function
and structure has been undergoing. ‘The social profitability’
analysis has been done to determine that the project is worthwhile
from the point of view of the society as a whole from the point of
view of the health care services and the professional education to
be offered to the domiciles of the State of Madhya Pradesh. There
are about thousands of high schools including higher secondary
schools from which about 2 lakhs students are completing their
10+2 studies from the state. Out of which there are about 1-lakh
students completing their 10+2 with science subject and the only

19
option for them to enter for higher studies is in the field of medical,
Medical, paramedical, pharmacy and nursing courses.
‘Selection’ of the Project :
It has been selected choice on the basis of the social profitability as
an importance factor and taking the challenge of financial
constraints.
r. ‘Implementation’ of the Project :
It has already planned to implement the proposed medical hospital
project in a time-bound manner and it is confident to complete the
project within the resources budgeted or allocated, but for kind
information the project process has been already started.

‘Evaluation’ of the Project :

The realistic and a definitive feedback mechanism will be followed
to access the actual performance of the project and the decision
making of the Trust. So that the desired goal is achieved.
Summary & Conclusion –
This feasibility report has been covered with the all the relevant
details like the technology to be adopted, the service to be
provided, justification of the proposed location and the
environmental scanning and the other technical details including
the equipment, construction requirements and the manpower
requirements etc. The relevant commercial details including the
demand for the
service the cost of the project, the forecast of the cost of
production and the prompt estimation of net surplus has been
calculated and incorporated.
Regarding the financial aspects the information is covered to the
sources of finance and their mix and the treatment of interest
during the construction stage. The cash flow statement for the next
eight years has been prepared to show the availability of cash, and
various profitability, liquidity and solvency ratios have also been
worked out. Considering the economic aspects of the project that is
the return of the project in-terms of the outlay proposed has been
evaluated to ascertain whether the investment proposed is worth-
while or not.
This has been done to ensure the optimal use of resources.To
ascertain the economic aspects the various methods for the
evaluation of investment proposal has been used. These are :
The Capital investment decision
Estimating the cash flows of the project
Evaluating the cash flows
All these factors are strategically follow and this feasibility report
thus meets all the required fact and truths. Finally based on all
these factors the project can really be considered.
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.

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