Can better project evaluation reduce future NPAs?
Every viable project rests on more than conviction; it rests on informed decision-making. Many projects that eventually run into delays, cost overruns, or financial stress often share a common root cause: inadequate evaluation before capital was committed.
This is where Techno-Economic Viability (TEV) studies matter. A TEV study looks independently at a project’s technical feasibility, market potential, financial sustainability, implementation plan, and the promoter’s execution capability, so that a lending decision rests on evidence rather than assumptions.
The scale of what this gap can cost is visible in the data. Government-tracked infrastructure projects have absorbed close to ₹5.4 lakh crore in cost overruns against their sanctioned values, an escalation of nearly 14.5%. In a meaningful share of these, physical progress has outpaced financial disbursements, a sign of decisions made without sufficient independent scrutiny along the way.
Regulation is moving in the same direction. RBI‘s Project Finance Directions, effective October 2025, tie disbursement more closely to verified, milestone-based progress rather than self-reported status.
As India’s project finance ecosystem matures, the shift is clear: from financing projects to financing projects that are demonstrably bankable, sustainable, and commercially viable.
Rubix Data Sciences‘ TEV reports are built to support exactly this shift, applied at sanction and at every milestone that follows.
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