The followings aspects may be looked into:

Compatibility with promoters

Consistency with Government Priorities

Availability of inputs

Adequacy of market

Reasonableness of cost

Acceptability of risk level

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 Are the promoters of the project entrepreneurs only
or managers as well?
Which are the areas in which they have got
expertise?
Whether they have experience in the related fields?
What has been the nature of their past managerial
experience?
Have they been successful in developing a
professional team of their organizations?
Whether proper delegation has been implemented in
the organization?
What type of management style they have been
adopting?

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 Is the project consistent with national goals
and priorities ?
Can the foreign exchange requirements f the
project be easily accommodated?
Will there be any difficulty in obtaining the
license for the project

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 Are the capital requirements of the project
within manageable limits
Can the technical Know-how required for the
project be obtained?
Are the raw materials required for the project
available domestically at a reasonable cost?
If the raw material have to be imported, will
there be problem

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 Total present domestic market
Competitors and their market shares
Export market
Quality price profile of the product
Sales and distribution system
Barriers to the entry of new units
Patent protection

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 Cost of material inputs
Labour costs
Factory overheads
General administration
Selling and distribution cost

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 Technological changes
Competition from substitutes
Competition from imports
Government control over price and
distribution

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 When a firm evaluates a large number of
project ideas regularly; it may be helpful to
streamline the process of preliminary
screening. For this purpose, a preliminary
evaluation may be translated into project
rating indexs

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 Identify factors relevant for project rating
Assign weights to these factors
Rate the project proposal n various factors
,using a suitable rating scale
For each factor, multiply the factor rating with
the factor weight to get the factor score
Add all the factors scores to get the overall
project rating

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Factor Factor weight
Input availabilty 0.3

Technical Know-how 0.15

Resonableness of cost 0.2

Adequacy of market 0.15

stability 0.1

Consitency with gov.reg 0.1

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