Introduction to Project Finance:
Introduction, Project Financing Advantages and Disadvantages, Project Development Obstacle, Project Finance Features, Business models, Project Cycle Management, Financial and Economic Feasibility, Overview of Economic Development and Growth, Measures of Economic Development, Analysis of Project Environmental Technological Feasibility, Economic Analysis of Project
Financing of Project:
Principle and Components of Financial Analysis, Ratio Analysis, Optimal Capital Structure, Weighted Average Cost of Capital – WACC, Cost of Equity, Capital Asset Pricing Model, Internal Rate of Return (IRR), Viability Gap Funding (VGF), Take-out financing, Sources and Uses of Cash, The Statement of Cash Flows, Cash Flow, Benefits from using Cash Flow, Managing Short-Term Net Cash Flows, Liquidity Management, Managing Inventory, Managing Accounts Receivable, The Cash Operating Cycle, Forecasting Working Capital, Theory of Cost Benefit Analysis, Importance of Cost Benefit Analysis.
Project Analysis and Management:
Introduction, Purpose of Projective Analysis, Techniques/Tools of Project Analysis, Project Analysis and other Techniques of Optimizing Behaviour, The Break-Even Chart, Break-Even Method of Investment Analysis, Appraisal of Break-Even Analysis, Liquidity Management, Managing Inventory, Managing Accounts Receivable
Project Finance Risks and their Mitigations:
Risk Basics, Risk Types and Mitigants, Risk Identification, Quantitative Risk Analysis, Financial Risks, Political Risk, Social Risk, Risk Mitigation, Risk Options, Mitigation options, Cost of Mitigation Planning, Monitoring Mitigation plan, Public Sector Guarantees and Insurance, Private Sector Insurance and External Credit Enhancement, Grants and taxation, Exit Policy
Legal and Taxation :
Depreciation, Tax Exemptions and Incentives, Project Legal Aspects, Project Contract Basics, Due Diligence Report, The Term Sheet, Project Documents.
Course outcome (Course Skill Set)
At the end of the course the student will be able to:
1. Prepare financing and Legal reports for projects
2. Perform analysis of projects for feasibility and viability
3. Provide details on risk management and funding
4. Manage and maintain projects with confidence
Assessment Details (both CIE and SEE)
Continuous internal Examination (CIE)
Three Tests (preferably in MCQ pattern with 20 questions) each of 20 Marks (duration 01 hour)
1. First test at the end of 5th week of the semester
2. Second test at the end of the 10th week of the semester
3. Third test at the end of the 15th week of the semester
Two assignments each of 10 Marks
1. First assignment at the end of 4th week of the semester
2. Second assignment at the end of 9th week of the semester
Quiz/Group discussion/Seminar, any two of three suitably planned to attain the COs and POs for 20 Marks (duration 01 hours)
The sum of total marks of three tests, two assignments, and quiz /seminar/ group discussion will be out of 100 marks and shall be scaled down to 50 marks
Semester End Examinations (SEE)
Suggested Learning Resources:
Books
1. VikasShrivastava, V Rajaraman. “Project and Infrastructure Financing”, Oxford University Press Publication.
2. Stefano Gatti. “Project Finance in Theory and Practice. Designing, Structuring, and Financing Private and Public Projects”, Elsevier Science Publications, Sabre Foundation.