Detailed Feasibility Report and its Preparation in Steel Sector...

Detailed Feasibility Report and its Preparation in Steel Sector A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of a proposed project, opportunities and threats present in the environment, the resources needed to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost needed and the value to be attained. A well-designed feasibility study provides a background for the project, a description of the project, accounting statements, technical details, and financial data. Generally, feasibility study includes technical development and project implementation. It evaluates the project’s potential for success and hence, perceived objectivity is an important factor in the credibility of the feasibility study for potential investors and lending institutions. It is necessary, therefore, that the feasibility study is conducted with an objective, unbiased approach to provide information upon which decisions can be based. Feasibility report is a base document for a steel project for the decision making with respect to investment in the project. Depending of the stage of the project, when the feasibility report is made, it is known as pre-feasibility report (PFR), feasibility report (FR), or detailed feasibility report (DFR). It is obvious that DFR is more accurate than FR both in technical aspect or financial analysis aspect. PFR study is a preliminary study undertaken to determine, analyze, and select the best alternative among several alternatives, both technically and financially. It is difficult and it takes time if each of the alternatives is studied deeply. Hence, shortcut method deems acceptable in the early stage is used to determine minor components of investment and production cost. If the selected alternative is considered feasible, then normally the study at the FR or DFR is taken up to get deeper analysis of the selected project scenario. Technically...