What is TEV Study ? | |
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An
entrepreneur/ industrialist desirous of setting up of his own industry has to perform multifarious activities in a logical sequence. |
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Setting
up may be new or an addition to the existing unit. |
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He
has to arrange finance for setting up of new industry or addition to existing
unit. |
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He has to obtain finance from the Bank / FIs. or from the market. |
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Before obtaining finance from the Bank, the Bankers will conduct TEV study. |
Is TEV Study is mandatory for the Banks ? | |
On the basis of policy of the Bank, the TEV Study limit has been fixed by the Bankers. | |
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TEV study is normally conducted for the loans for Rs.50.00 lacs and above, as insisted by majority of Banks. |
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TEV study is mandatory for the loans above Rs.10.00 crores. |
Why TEV Study Report is required for the Bank / Lender ? | |
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When proposal of loan is received from
the customer/ borrower, the Branch Manager will have to appraise the project
to know whether the project is technically and financially feasible and viable? |
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If the Bank lends the money, whether there
will be regular repayment of loan out of the internal generation of funds? |
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Whether adequate securities are available against Bank’s exposure and what will be the FMV? |
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What is the position of financials of the Company ? |
ROLE OF YPCVL IS | |
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To collect the necessary information/ documents from the customer/ Bank. |
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To study the projections given in the project report, |
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To visit the site to verify the land, building, machinery etc as per the projections. |
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Submit the report on financials and technical aspects of the unit to the Bank with concluding remarks. |
Who is Lender's Engineer (LIE) ? | |
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After TEV study, the next step
is appointment of LIE. |
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The LIE can be an individual for a small project and a group of engineers or a venture management firm for bigger projects. |
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They will act as representative
of the lender/ banker and get involved with the construction
project from the very inception and look after the interests
of the lender. |
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The LIE will visit the site at periodical intervals (once in quarter) till completion of the project or at other short intervals (say monthly) given by the lender. |