Page 64 - DMGT521_PROJECT_MANAGEMENT

Unit 4: Project Analysis and Selection

Auxiliary Materials and Factory Supplies Notes

In addition to the basic raw materials and processed industrial materials and components, a
manufacturing project requires various auxiliary materials and factory supplies like chemicals,
additives, packaging materials, paint, varnishes, oils, grease, cleaning materials, etc. The
requirements of such auxiliary materials and supplies should be taken into account in the
feasibility study.

Utilities

A broad assessment of utilities (power, water, steam, fuel, etc.) may be made at the time of the
input study though a detailed assessment can be made only after formulating the project with
respect to location, technology, and plant capacity. Since the successful operation of a project
critically depends on the adequate availability of utilities, the following questions should be
raised while conducting the inputs study. What quantities are required? What are the sources of
supply? What would be the potential availability? What are the likely shortages/bottlenecks?
What measures may be taken to augment supplies?

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4.8 Basis of Government Regulatory Framework

Government of India recognizes that there are significant shortcomings in the availability of
critical infrastructure in the country at central as well as state and local level and that this is
hindering rapid economic development. In addition, the development of infrastructure requires
very large investment that may not be possible out of the budgetary resources of government of
India alone. In order to remove these shortcomings and to bring in private sector resource as
well as techno-managerial efficiencies, the government is committed to promoting Public Private
Partnerships (PPPs) in infrastructure development.

It is also recognized that infrastructure projects have a long gestation period and may not all be
fully financially viable on their own. On the other hand, financial viability can often be fully
financially viable on mechanism that provides government support t reduce project costs. The
government of India therefore proposes to set up a special facility to provide such support to
PPP projects. This support is generically termed as ‘viability gap funding’ throughout this
document. This facility will be housed in the department of economic affairs (DEA). Suitable
budgetary provisions will be made on a year basis.

4.9 Project Proposal and Project Portfolio Process

A technical proposal, often called a “Statement of Work,” is a persuasive document. Its objectives
are to:

1. Identify what work is to be done
2. Explain why this work needs to be done
3. Persuade the reader that the proposers (you) are qualified for the work, have a plausible
management plan and technical approach, and have the resources needed to complete the
task within the stated time and cost constraints.

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