1. What Determines TEV Report Fees in India

TEV report fees are rarely decided by a standard rate card. The fee generally depends on what the assignment involves, how much information needs to be reviewed, the nature of the project, and what the lender expects from the final report.

A Techno Economic Viability report is not simply a financial projection prepared from figures supplied by the promoter. For a proper assessment, the consultant may need to examine the project concept, technical configuration, installed capacity, machinery, raw materials, utilities, project cost, means of finance, operating assumptions, market conditions, projected revenues, expenses, cash flows, debt servicing capacity, and several other aspects.

This is why two companies asking for a TEV report can receive very different quotations.

Consider an established manufacturing company planning to add another production line to an existing plant. The consultant may already have access to operating data, historical financial statements, machinery quotations and production information. The assignment may be relatively straightforward.

Now consider a new greenfield industrial project where land acquisition is still being completed, machinery suppliers have provided different quotations, capacity assumptions are under discussion and the promoter is approaching a consortium of lenders. The amount of work is considerably higher. The TEV report also has to withstand closer scrutiny.

The same principle applies to solar projects, hospitals, warehouses, infrastructure projects and other capital intensive ventures.

TEV report fees therefore need to be viewed in relation to the scope of work rather than simply as a professional charge.

Banks also have a reason for commissioning or relying on a TEV assessment. A lender wants an independent view of whether the proposed project makes technical and economic sense and whether the assumptions supporting repayment are reasonable.

A promoter may be convinced that a project can generate strong returns. The lender has to test that belief.

That difference in perspective is important.

2. Why TEV Report Fees Vary From Project to Project

There is a common expectation among promoters that a TEV report should have a fixed price because the name of the report is the same. In practice, the assignment behind the report can be completely different.

A small capacity expansion and a large greenfield project cannot be assessed with the same level of effort.

For example, suppose an MSME has an existing engineering unit and wants term finance for new machinery. The consultant may need to study the existing operations, proposed expansion, machinery quotations, incremental production, additional working capital and projected debt servicing.

Compare that with a hospital project where the promoter is setting up a new multi speciality facility. Here, the assessment may involve construction costs, medical equipment, bed capacity, occupancy assumptions, staffing, departments, tariffs, operating expenses, location considerations and the financing structure.

The report may be considerably more involved.

Solar projects provide another useful example. A lender evaluating a solar project may be interested in generation assumptions, plant capacity, equipment selection, project cost, evacuation arrangements, power sale arrangements, operating expenses and debt repayment. The commercial structure can also influence the assessment.

So when someone asks about TEV report fees, the better question is usually, "What exactly does the assignment require?"

Some of the factors that can change the professional fee include:

Factor	Why it matters
Project size	Larger investments usually require more detailed assessment
Project type	Manufacturing, solar, healthcare and infrastructure have different technical considerations
Greenfield or expansion	Existing operations provide more historical information
Financial complexity	Multiple funding sources and complicated debt structures require additional analysis
Site assessment	Physical or operational verification can add to the assignment
Lender requirements	Specific lender formats and additional analysis may increase the scope
Data availability	Poor or incomplete information often requires more clarification and validation
Number of locations	Multiple sites can make the assignment more time consuming
Project stage	A concept stage project may need more assumption testing than a mature project

This does not mean a higher fee automatically means a better report. It means the scope needs to be understood before comparing quotations.

I have seen cases where promoters focus heavily on saving a relatively small professional fee and later spend much more time correcting inconsistencies between the DPR, financial model, machinery quotations and information submitted to the bank. That is frustrating because the problem could often have been avoided at the beginning.

3. Key Factors That Influence TEV Report Fees

Several elements usually determine the amount of professional work required for a TEV assignment.

Nature of the project

A simple expansion of an existing unit is different from a new infrastructure project.

A manufacturing project may require analysis of production capacity, machinery, raw materials, power requirements and manufacturing costs. A real estate development may involve construction schedules, sales assumptions, approvals, project costs and cash flows.

The technical and commercial questions change with the sector.

Project cost

Project cost is another practical consideration. A ₹10 crore project and a ₹500 crore project may require very different levels of analysis.

This is not because the fee should simply be calculated as a percentage of project cost. Professional fees are generally linked more closely to the scope and complexity of work. However, larger projects tend to involve more assumptions, more stakeholders, more documentation and greater lender scrutiny.

Greenfield versus expansion

An existing business has historical financial statements, production records, customer information and operating history.

A new project does not have this advantage.

For a greenfield project, the consultant has to rely more heavily on market assumptions, technical proposals, cost estimates and promoter inputs. Those assumptions need to be examined carefully because there is no operating history to compare against.

This often affects TEV report fees.

Financial structure

The financing arrangement can also influence the assignment.

Suppose a promoter is arranging ₹50 crore of term debt from one bank. The financial analysis may be relatively direct.

Now consider a ₹300 crore project involving multiple lenders, promoter contribution, term debt, working capital limits, possibly external funding and different repayment conditions. The assessment becomes more detailed.

Debt servicing, interest assumptions, repayment schedules, project cash flows and sensitivity analysis need to be consistent.

Quality of available information

This is often underestimated.

If the promoter provides an organised DPR, audited financial statements, machinery quotations, land documents, production details, projected financials and other relevant information, the consultant can spend more time analysing the project.

If information arrives in fragments, with changing figures and contradictory assumptions, considerable time may be spent clarifying basic facts.

Sometimes the report itself is not the difficult part. Getting reliable information in the right sequence is.

Requirement for site visit or technical verification

Some assignments may require a site visit or discussions with the project team.

For an operating manufacturing unit, physical understanding of the plant, machinery and proposed expansion can be useful.

For a warehouse project, the consultant may need to understand the location, construction stage, proposed capacity and operational arrangement.

Where field visits or additional verification are part of the scope, this can affect TEV report fees.

Lender specific requirements

Banks and financial institutions do not always ask for identical information.

One lender may require a standard TEV assessment. Another may ask for additional sensitivity analysis, technical verification or clarification of particular project assumptions.

A report prepared for a significant lending decision has to address the questions that matter to the lender.

4. TEV Report Fees for Manufacturing and Industrial Projects

Manufacturing projects are among the assignments where the difference in scope can become particularly visible.

Take a company manufacturing auto components. It has been operating for several years and now wants to install additional CNC machines to increase capacity.

The consultant may examine:

1. Existing production and capacity utilisation
2. Proposed additional capacity
3. Machinery quotations
4. Raw material requirements
5. Power and utility requirements
6. Incremental manpower
7. Manufacturing costs
8. Expected selling prices
9. Existing customers and market demand
10. Working capital requirements
11. Projected profitability
12. Debt servicing ability

The assessment is not limited to asking whether the new machines will increase production. The real question is whether the additional investment makes commercial sense and whether the resulting cash generation is sufficient for the proposed borrowing.

Now change the situation.

A promoter wants to establish a completely new pharmaceutical manufacturing facility. Land, building, utilities, plant and machinery, regulatory requirements, production capacity, product mix and market assumptions all have to be examined.

The level of analysis can be much greater.

This is one reason it is difficult to give a meaningful universal figure for TEV report fees without knowing the project.

An industrial borrower may also approach a consultant during a restructuring situation. In that case, the question is not simply whether a new project is viable. The assessment may need to consider existing debt, operational performance, repayment obligations, future cash generation and the proposed restructuring arrangement.

That is a different assignment altogether.

For MSMEs, another issue frequently appears. The promoter may prepare a project cost based on initial quotations, but by the time the proposal reaches the bank, machinery prices, construction costs or working capital assumptions may have changed.

A TEV assessment can bring these inconsistencies into focus.

The purpose is not to make the report look complicated. It is to give the lender a reasonable basis for understanding the project.

5. How Project Size and Complexity Affect TEV Report Fees

Project size matters, but complexity often matters more.

A ₹100 crore project with a straightforward structure and reliable information may be easier to assess than a smaller project with several locations, uncertain assumptions and complicated financing.

This is particularly relevant when comparing TEV report fees from different consultants.

A promoter should not compare only the quoted amount. It is better to compare what each consultant is actually agreeing to examine.

For example:

Assignment characteristic	Likely impact on scope
Existing unit expansion	Usually simpler
New manufacturing facility	More detailed technical and financial assessment
Large infrastructure project	Higher complexity and stakeholder involvement
Solar project with structured financing	Detailed technical and commercial analysis
Hospital project	Multiple operating and financial assumptions
Multiple project locations	Additional review and coordination
Consortium or multiple lenders	Greater documentation and financial analysis
Restructuring case	Historical and future debt assessment
Incomplete project information	More clarification and validation work

Project complexity can also increase when the promoter has ambitious assumptions.

Suppose a new factory is projected to reach 90 percent capacity utilisation very quickly. The consultant cannot simply insert that figure into the financial model because it was provided by management.

The assumption needs to be considered against the nature of the industry, production ramp up, market demand, sales arrangements and operating capabilities.

Similarly, projected selling prices need some commercial logic behind them. Raw material costs, employee expenses, utilities, maintenance and working capital cannot be treated as arbitrary numbers.

This is where the experience of the consultant becomes relevant.

A technically correct spreadsheet can still represent a weak project if the assumptions behind it are unrealistic.

Many business owners believe that if the DPR is prepared properly, the bank loan will automatically follow. I disagree with that view. A DPR is an important part of a funding proposal, but credit appraisal considers much more than the report itself. Existing financial performance, promoter contribution, collateral, repayment capacity, banking conduct, project viability and the lender's internal policies can all influence the decision.

At the same time, I might be wrong here if someone is dealing with a lender or scheme where the documentation requirements are unusually limited. This doesn't apply everywhere.

Frontline Consultants works on assignments where the requirement can extend beyond preparing a document. Its financial and project advisory work includes Techno Economic Viability Reports, Lenders Independent Engineer Services, Agency for Special Monitoring, Detailed Project Reports, Enterprise Valuation, Asset Valuation, Credit Syndication, Debt Restructuring, Bank Liaison, Project Advisory and Business Financial Consulting.

For a promoter considering a TEV assignment, the practical starting point is therefore not "What is the cheapest TEV report?"

It is "What does my lender actually need, and what level of assessment does my project require?"

That question usually gives a much clearer basis for discussing TEV report fees.

6. What Is Usually Covered in TEV Report Fees

When a promoter receives a quotation for a TEV assignment, the first thing to check should be the scope rather than only the amount.

TEV report fees normally relate to the professional work involved in assessing the technical and economic viability of a project. The exact scope can differ depending on the project and lender, but a serious assessment generally looks at several connected areas.

The technical side considers whether the proposed project can actually be implemented as planned. This may involve production capacity, technology, machinery, utilities, raw materials, location, implementation schedule and the proposed operating arrangement.

The economic and financial side looks at whether the project can generate sufficient returns and cash flows. Project cost, means of finance, revenue assumptions, operating expenses, working capital, profitability, cash flows and debt servicing are normally important parts of the assessment.

A lender is interested in how these pieces fit together.

For example, a promoter may say that a new manufacturing unit will produce 10,000 units a month. The consultant has to consider whether the proposed machinery supports that capacity, whether the production ramp up is reasonable, whether there is sufficient market demand and whether the projected sales can support the cost structure.

Financial analysis may include indicators such as DSCR, IRR, break even levels and projected cash flows where relevant.

A proper TEV assessment can also identify assumptions that require further clarification. That is useful before the proposal reaches the credit committee because resolving inconsistencies at that stage is usually easier than responding to repeated lender queries later.

The fee may also cover discussions with the promoter, review of documents, analysis of existing operations, examination of project estimates and preparation of the final report.

If a site visit, technical verification or lender specific requirements are included, these should be clearly mentioned in the engagement scope.

This is particularly important for larger projects. A promoter should know whether the quoted TEV report fees include only a desktop assessment or involve field level review as well.

7. Why the Cheapest TEV Report May Not Be the Best Option

Cost matters. Nobody wants to pay unnecessarily high professional fees.

But with a TEV report, looking only at the lowest quotation can create problems later.

Suppose two consultants quote substantially different TEV report fees for the same industrial project. At first glance, the lower quotation may appear attractive.

But are both consultants doing the same work?

One may be offering a limited financial assessment based mainly on promoter supplied information. The other may be reviewing the technical proposal, project cost, machinery quotations, operating assumptions, market information and lender requirements in greater detail.

The reports may have the same title, but the underlying work may not be comparable.

This is something I have seen cause frustration for promoters. A report is prepared quickly, submitted to the lender, and then several basic questions come back. The promoter assumes the bank is unnecessarily delaying the proposal. Sometimes the lender is simply asking questions that should have been addressed during the original assessment.

A low fee is not automatically a problem. For a straightforward assignment with clear documentation, a reasonable professional fee may be perfectly appropriate.

The concern arises when the scope is too narrow for the project.

A promoter should ideally ask:

What information will be reviewed?

Will the consultant examine the project cost?

Will technical assumptions be assessed?

Will financial projections be tested?

Is sensitivity analysis included where required?

Are lender specific requirements covered?

Is a site visit required?

Will clarification be provided after submission to the lender?

What happens if the bank raises questions about the report?

These questions make the comparison more meaningful.

There is also a misconception that a TEV report is primarily a document created to satisfy a bank. It is better viewed as an independent assessment that can expose weaknesses in the project before the lender does.

That can save money.

If a ₹100 crore expansion has a flawed working capital assumption, discovering it before financial closure is far less painful than discovering it after the project has started.

Sometimes perfectly good projects get delayed because documentation was prepared in the wrong sequence. It still surprises me.

8. When Banks and Lenders Ask for a Detailed TEV Assessment

Banks and financial institutions may ask for a TEV assessment when they need greater independent comfort regarding the feasibility of a project.

The requirement is not identical for every loan proposal.

A small machinery loan for an established business may not require the same level of assessment as a large greenfield project.

For a major project, the lender needs to understand what is being financed and how the borrower expects the debt to be repaid.

Consider a solar project seeking long term project finance. The lender may want an assessment of the project configuration, capital expenditure, generation assumptions, operating costs, revenue arrangement and debt servicing capacity.

Now consider a hospital project.

The lender may need to examine bed capacity, construction cost, medical equipment, staffing, occupancy assumptions, treatment mix, operating expenses and projected cash generation.

A warehouse expansion can present a different set of questions. The lender may be interested in construction costs, storage capacity, expected utilisation, rental or operating revenue, location and repayment capacity.

For a manufacturing expansion, the focus may shift towards installed capacity, utilisation, machinery, raw material availability, customer demand, production costs and incremental working capital.

A detailed TEV assessment becomes particularly relevant when:

1. The project involves substantial capital expenditure.
2. The proposal is greenfield.
3. The technical configuration is complex.
4. The lender needs independent technical and financial assessment.
5. Multiple lenders are involved.
6. The promoter is seeking significant term debt.
7. Project assumptions require closer examination.
8. The project is being restructured or revived.
9. The lender has specifically asked for a TEV report.
10. There are material gaps between the DPR, financial projections and other submitted documents.

In lending situations, the report is only one part of the overall credit appraisal.

The bank may also assess the promoter's track record, existing financial position, banking conduct, security, contribution, repayment capacity and other internal credit parameters.

So even a well prepared TEV report does not mean loan approval is guaranteed.

Its purpose is to give the lender a credible basis for assessing project viability.

9. How Frontline Consultants Approaches TEV Assignments

Frontline Consultants has been working in financial and project advisory for more than 30 years. Its experience covers assignments connected with lenders, industrial projects, corporate borrowers and promoters.

The practical approach to a TEV assignment starts with understanding the project rather than immediately filling a report format.

For an existing manufacturing company seeking expansion finance, the first requirement is usually an understanding of the current business. Historical financial performance, existing capacity, utilisation, product mix, proposed machinery, incremental investment and expected additional revenue all matter.

For a greenfield project, the approach is different.

There may be no operating history. The assessment therefore has to pay closer attention to project cost, technical feasibility, implementation schedule, market assumptions, funding structure and projected operations.

The same applies to sector specific assignments.

A solar project cannot be assessed using exactly the same assumptions as a hospital. An infrastructure project has different risks from an industrial warehouse. A restructuring case has a different purpose from a new project seeking first time financing.

Frontline Consultants' wider project advisory experience includes Techno Economic Viability Reports, Lenders Independent Engineer Services, Agency for Special Monitoring, Detailed Project Reports, Enterprise Valuation, Asset Valuation, Credit Syndication, Debt Restructuring, Bank Liaison, Project Advisory and Business Financial Consulting.

That broader exposure can be useful because project viability rarely sits in isolation.

A project may be technically sound but financially stretched.

A business may have strong demand but insufficient working capital.

A promoter may have a viable expansion plan but an unrealistic implementation schedule.

A project may appear profitable on paper but have weak debt servicing capacity because cash flows are poorly timed.

These distinctions matter during lender discussions.

The objective should not be to make every project appear attractive. An independent assessment should identify where the proposal is strong and where assumptions need attention.

If something appears weak, it is better for the promoter to know before approaching the lender.

That is also where the discussion around TEV report fees becomes more sensible. The professional fee should be considered alongside the scope, level of analysis, project complexity and support expected from the consultant.

10. Frequently Asked Questions About TEV Report Fees

What are TEV report fees?

TEV report fees are the professional charges for preparing a Techno Economic Viability assessment. The amount depends on factors such as project size, sector, complexity, documentation, technical requirements and lender expectations.

Is there a fixed TEV report fee in India?

There is no single fee applicable to every project. A small expansion assignment and a large greenfield infrastructure project can require very different levels of professional work.

What affects TEV report fees the most?

Project complexity, project cost, greenfield or expansion status, quality of available information, technical requirements, financial structure and lender specific requirements can all influence the fee.

Do TEV report fees include financial analysis?

In a properly scoped TEV assignment, financial analysis is generally an important part of the assessment. This can include project cost, means of finance, projected profitability, cash flows and debt servicing indicators where relevant.

Do TEV report fees include a site visit?

Not necessarily. It depends on the engagement scope. If a lender requires physical verification or the project circumstances make a site visit appropriate, it should be specifically discussed before the assignment begins.

Can a TEV report help with bank financing?

Yes, a TEV report can support the lender's assessment of project feasibility and repayment capacity. However, it does not guarantee loan approval because banks consider several other credit parameters.

Should an MSME always get a TEV report before applying for finance?

Not every MSME financing proposal requires a detailed TEV assessment. The need depends on the size and nature of the project, the funding requirement and the lender's requirements.

Can Frontline Consultants prepare TEV reports for manufacturing projects?

Yes. Frontline Consultants undertakes Techno Economic Viability assignments for industrial and other project requirements, with the scope determined by the nature of the project and the lender's expectations.

Why do TEV report fees differ between consultants?

Different consultants may be offering different levels of analysis, verification, documentation review and post submission support. Comparing the scope of work is therefore more useful than comparing only the quoted fee.

What should I ask before accepting a TEV quotation?

Ask what the fee covers, what documents will be reviewed, whether technical and financial assumptions will be examined, whether a site visit is included, what lender requirements are covered and whether clarification support is available after submission.