6.2 Project Feasibility Study

Feasibility study of a project is necessary in order to obtain loan and equity participation from financial institutions. It should cover various points in the technology-development chain, such as the availability of technology and alternate sources, costs involved in the commercialization of the project, availability of raw materials, and their alternate uses, market conditions and their demand projections, and the various socio-economic and environmental conditions and constraints.

The importance of availability of a financial feasibility-study can be understood in the backdrop that the potential customers. Particularly the small and medium size industrialists, like to obtain not merely the process or the product design, but a total proven package of product/process, plant engineering, backed by professional and financial guarantees. The laboratories which are in position to offer these services, such as market research, product research, consulting engineering services, etc. along with the normal output of technology, have better chances of selling their product i.e. research output. The research efforts are focused on the development of indigenous technologies rather than tracking, undertaking and absorbing international technological trends in those fields most relevant for domestic firms.

Japan : The Japan Small Business Corporation which is entrusted with the responsibility to promote transfer of technology to the small and medium enterprises, conducts developmental activities related to design studies, trial production and operational studies.

Korea : In the Republic of Korea, the Korea Institute for Economics and Technology (KIET) plays a major role in conducting feasibility studies. KIET undertakes both micro and macro-level analyses of the industrial sector, in order to enhance business viability and to assist the Government in the formulation of industrial policy. It analyses industry by sectors and conducts sector-wise and sub-sector level studies, and also conducts feasibility studies when an industry or area of interest or a potential business opportunity is identified. These studies usually include analysis of market potential for success in the industrial environment of the country. Apart from government and industry, regular consultative and extension services are provided to individual entrepreneurs, covering technology, marketing and financing, especially services covering management techniques, quality improvements and cost-reduction, development of new technology and new products.

Philippines : National Science and Technology Authority (NSTA) in the Philippines renders technical assistance, in the form of consultancy and other related services, for consulting clients and helping people utilize S&T and management information. Other agencies providing assistance to the probable entrepreneurs include Philippines Invention Development Institute (PIDI) and the Technology Utilization Support System (TUSS).

India : Feasibility studies in India are done by various organizations. For instance, the Technical Consultancy Organization (TCO) of the Indian Finance Corporation provides a package of consultancy services, from conceptualization to commissioning of projects. The National Research Development Corporation also prepares feasibility study on some selected processes, covering market, technical and financial aspects of the project in question.