In a Detailed Project Report, the project plan is elaborately laid out explaining the idea, the various functions required to be performed, estimation and allocation of resources required supported by a Project Feasibility report. It’s ideally a final set of documents and blueprints before project execution that also focuses on the forecasted Return on Investment, risks and mitigation measures. A Detailed Project Report traditionally includes the following in order:
In order to prepare a Detailed Project Report, a variety of expertise is required from each arena tied to the project's success. It's also true that a DPR without insights is an incomplete exercise and must include a Project feasibility report so the potential investors can easily decide whether to invest in the project. Due to extreme intricacies and the need for a thorough technical and financial evaluation, most companies appoint professionals like us to evade the worries of building an impactful Detailed Project Report.
Prior to project commencement, conducting a feasibility study is paramount. During the analysis, a detailed study is conducted evaluating the project’s feasibility from all angles such as its technical, economical, political, ecological, environmental etc. Robust figures achieved in all these various analyses justify through this report the need of initiating the project, which in itself is key to building a Detailed Project Report, to assess various strengths and weaknesses, risk aspects and their mitigation. This helps an investor make suitable decisions. Project Feasibility Study is a documented output of all these studies summarised to establish whether the project is technically feasible and economically viable.
A feasibility study conducted by an investment company focuses on product demand, market situation, production capacity, cost vs revenue, financial & organizational structure of the company, and Return on Investment projection. The report also highlights the risks involved and offers a fair comparison between suitable investment proposals. A well-framed Project Feasibility Report quickens the process of obtaining consensus from all the stakeholders involved, speeds up negotiations with parties, help government bodies fast-track issuance of licenses, subsidies, and incentives. This study offers an opportunity to take corrective measures prior to any financial, resource, or time commitment made. Project feasibility report is not the same as a Detailed Project Report but is definitely an unavoidable component of it. Let’s explore how.