feasibility study

Feasibility literally means whether some idea will work or not. It knows before hand whether there exists a sizeable market for the proposed product/service, what would be the investment requirements and where to get the funding from, whether and wherefrom the necessary technical know-how to convert the idea into a tangible product may be available, and so on. In other words, feasibility study involves an examination of the operations, financial, HR and marketing aspects of a business on exante (Before the venture comes into existence) basis.

Feasibility is a multivariate concept; that is, a project has to be viable not only in technical terms but also in economic and commercial terms too. Moreover, there always is a possibility that a project that is technically possible may not be economically viable. For instance, you can construct a dust free factory in Rajasthan, but it is more economically sensible to do so in Chandigarh/ Bangalore. So even as we take up the various aspects of feasibility oneby- one, it must not mislead into believing that there is a sequence and that there are no interdependencies.

As compared to a pre-feasibility study the analysis involved in a feasibility study in much more rigorous and requires specialised skills of a higher order, even though the basic framework is similar to the outline presented above. Further, it is usually based on additional, and more reliable, data especially gathered through research, surveys, pilot plant studies or tests for the project idea, tis location, and its techno-economic environment.

One must not lose sight of the fact that a feasibility study is basically an aid to decision making, and hence the deployment of time, money, and other resources on it should never be allowed to outgrow the potential benefits that it may hopefully yield. In terms of time, it has been preceded by a pre-feasibility study. Moreover, it should be able to generate capital cost estimates with a margin of error not exceeding 25% and help the investor to decide whether to abandon, postpone, or go ahead with, the project, Its findings should also help one to assess the relative strengths and weaknesses of prospective participants in the project at the negotiation stage in the investment phase.


The Innovator

Gurmit Singh, New Delhi

Dr. Gurmit Singh is a research scientist and an environmentalist, his profound enthusiasm and passion for renewable energy technologies has been for 28 years now. He holds both his Bachelors and Masters degrees from 'Rheinisch-Westfalische Technische Hochschule Aachen.' In Germany and spent 14 years in Germany working as a research Scientist and then 8 years in Florida, USA in Solar Research. He is winner of 'Lockheed Martin Innovation Award 2008' in renewable energy, also won the '2010 BuildArch Award'and recently won the 'i3 India Innovates Award 2011'. His professional career started with a technology assessment of the carbon abatement potential of specific industrial technologies in the EU, and the evaluation of national and international policies and measures in the areas of climate change, energy efficiency and renewable energy. Currently he is a Visiting Faculty for 'Renewable Energy' at Amity University, Noida