What is a TEV study report? Contents, process and cost
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Written by the Sapient Services Valuation and Advisory Team | IBBI-registered valuation and advisory firm, Sapient Services Pvt. Ltd., New Delhi | Last updated: October 2026
A TEV study report is an outside assessment of whether a project can be built as planned and earn enough to repay its debt. TEV stands for Techno-Economic Viability.
Lenders ask for one because a project report shows what the promoter expects. The bank wants someone with no stake in the loan to test those expectations before it releases a single rupee.
This guide explains what the report contains and who can prepare it for an Indian lender. It also covers how the RBI’s project finance rules treat TEV, and how to check a draft before your bank reads it.
| Quick Answer: A TEV (Techno-Economic Viability) study report is a third-party appraisal of a project’s technology, cost, market and cash flows, prepared before a lender commits funds. It reports DSCR, IRR and NPV. Each lender sets its own format. The RBI’s project finance rules require one in a single case: a changed Appointed Date for a PPP infrastructure project with ₹100 crore or more of total lender exposure. |
What a TEV study report is
A techno-economic viability study is a document, written by a consultant the lender accepts, that tests whether a proposed or existing project is technically workable and can service its debt. The RBI’s project finance rules refer to it, and SBI and SIDBI publish what they expect from TEV consultants.
It is also called a techno-economic feasibility report or a project viability study, and the name matters less than the scope your lender agrees. For the lender, the report tests figures it cannot easily check itself, such as real plant capacity, utility needs and the full project cost.
Who needs a TEV study report, and when
No loan size makes every bank ask for a TEV study. Each lender decides under its own credit policy, usually for project loans and larger or more complex proposals.
If your lender requires the report, the application is likely to wait for it. If it does not, a study you commission yourself still shows where your cost and capacity assumptions are weak, before the bank finds them.
Investors, and lenders assessing an existing or troubled unit, commission them too.
What the RBI rules say about a TEV study
Online summaries often call ₹100 crore a blanket trigger for a TEV study. That reading is wrong, and the RBI text shows why.
The RBI set out its project finance rules in the Project Finance Directions, 2025 (circular RBI/2025-26/59, 19 June 2025). Its Credit Facilities Directions of 28 November 2025, issued for commercial banks, NBFCs and All India Financial Institutions, now carry those provisions. Check the version that applies to your lender.
In a PPP infrastructure project, lenders disburse only after the Appointed Date is declared. If the concession authority moves that date, the lender may revise the original DCCO after reassessing viability.
A TEV study is required for that revision where all lenders’ exposure together is ₹100 crore or more. In the text I checked, that is the one situation that names a TEV study. Any other requirement comes from the lender’s own policy.
Who can prepare a TEV study report
The consultant must meet your lender’s acceptance criteria. That often means being on the lender’s empanelled panel, and acceptance by one bank may not carry over to another.
Do not pay a consultant until your bank confirms in writing that it will accept them.
What SBI asks of TEV consultants
SBI circles invite TEV consultants under uniform guidelines from the bank’s Corporate Centre. The Lucknow, Kolkata, Maharashtra and Mumbai Metro circles have each issued notices in 2026, according to SBI’s published empanelment notices. The January 2026 Lucknow notice sets these criteria:
- A record of industrial consultancy that includes TEV studies for banks or financial institutions, and a professional qualification in the applicant’s area of specialisation.
- At least three years of empanelment with other banks or institutions, and three appraised projects whose performance the bank evaluates.
- A team that pairs accountants for the financial analysis with engineers for the technical analysis.
- No delisting, de-panelling or blacklisting by any bank, institution or agency.
- Staff who belong to professional bodies such as institutions of valuers or engineers, or who are registered valuers under the Companies (Registered Valuers and Valuation) Rules, 2017, for which IBBI is the competent authority.
SIDBI’s April 2024 notice for green-financing TEV reports asked for at least two years of TEV experience in the relevant technology. It also asked for empanelment with at least two banks or agencies, or standing as a technical institution of repute.
These notices cover specific panels and may change, so confirm your own lender’s current criteria.
What a TEV study report covers
These areas follow the indicative scope in SBI’s January 2026 Lucknow notice, which leaves each lender to decide project by project. SIDBI’s 2024 notice adds contract and safeguard checks.
Promoters and project background
The promoters’ experience with similar projects, the standing of their group companies with lenders, and whether they can bring in equity and fund a cost overrun.
Technical assessment in a TEV report
Land, infrastructure, manpower, technology, existing capacity and implementation schedule, with validation of project cost and an ESG impact study of the available infrastructure. A plant’s output is set by its slowest stage, not by the rated output of any single machine.
Market and demand
Demand and supply, competition and the industry outlook. The test is whether the sales forecast has real buyers behind it.
Project cost and means of finance
Whether the budget covers everything the project needs, how that cost is funded and where the promoter’s contribution comes from.
Financial viability in a TEV report: DSCR, IRR and NPV
This section assesses future cash flows and profitability and tests them with sensitivity analysis. SBI’s scope names IRR, DSCR, debt-equity ratio, TOL/ATNW (total outside liabilities to adjusted tangible net worth) and MPBF (maximum permissible bank finance).
DSCR compares the cash available for debt service with the payments due. IRR is the return implied by the project’s cash flows, and NPV discounts the same flows to today’s value. Lenders differ on how they define DSCR, so confirm the definition with your bank.
A profitable project can still miss an instalment when cash arrives after it leaves. Ask for monthly working capital needs during ramp-up.
Management capability and governance
SBI’s scope looks at the management’s strategy and core competence, debt discipline, tenure and market reputation, and environmental and social concerns.
Approvals, contracts and schedule
Statutory approvals and their status on the date of the study, plus the implementation schedule. SIDBI’s notice also asks for a review of contracts such as EPC or turnkey, supply, power purchase, and operation and maintenance agreements, along with insurance.
Risks and recommendation
A SWOT analysis and a risk and mitigation analysis close the report. Each risk should come with a safeguard.
TEV report format
There is no single TEV report format used by every lender. A lender may supply its own scope, template or checklist, and SBI’s notice calls its scope indicative. Ask your bank for its format first and hand it to the consultant on day one.
For a report built to your lender’s scope, request a consultation with our TEV team.
How a TEV study report is prepared, step by step
- Get the lender’s scope and confirm the consultant is acceptable to the bank.
- Share the project documents. The consultant lists gaps and raises first questions.
- Complete the site visit and data checks on land, utilities, machinery, vendors, supply and offtake.
- The consultant analyses capacity, cost, market and cash flows, and runs DSCR and IRR under base and downside cases.
- Review the draft together. You confirm facts, and the consultant resolves any mismatch between sections.
- Receive the final report in the lender’s format, with support for lender queries as agreed.
TEV report vs DPR, feasibility study and technical due diligence
These documents overlap, which is why the terms get mixed up. The difference lies in who writes each one and what question it answers.
| Document | Prepared by | Question it answers | Typical use |
|---|---|---|---|
| DPR | Promoter or the promoter’s consultant | What do we plan to build, run and earn? | Presenting the project to lenders |
| Feasibility study | Promoter, internally or through a consultant | Is the project feasible enough to go ahead? | Early investment decision |
| TEV study report | Consultant the lender accepts | Do the assumptions hold up well enough to lend against? | Loan appraisal, restructuring, investor review |
| Technical due diligence | Technical consultant | What condition is the asset in, and what hidden risks exist? | Acquisitions, refinancing, expansion of a running plant |
A Lenders’ Independent Engineer (LIE) is a separate role. The LIE reports on construction progress for the lender, and the scope depends on the lender’s engagement terms. Our guide to the LIE report covers that stage.
If you still need the project report itself, see our detailed project report services.
Documents to gather before the study starts
Missing documents force the consultant to assume, and assumptions weaken the report.
- The DPR or a project summary with capacity, cost and funding plan.
- Profiles of the promoters and management team.
- Land or lease documents, and the status of approvals.
- Vendor quotations, specifications, signed contracts, and any supply or offtake agreements.
- Projected financial statements with their assumptions, plus audited financials for an existing business.
- Evidence of the promoter’s contribution, such as bank statements or sanction letters.
TEV study timeline and cost
Timelines depend on project size, document quality, site visits and the lender’s review rounds. Ask the consultant for a dated schedule that says what starts the clock.
There is no universal TEV price. Fees depend on project cost, sector, the number of sites and how many lender queries the consultant supports.
SBI’s January 2026 Lucknow notice gives an indicative fee of 0.10% of the project loan amount, capped at ₹0.50 crore plus GST, for its own empanelled consultants. That is one institution’s reference point, not a market rate, so look at scope and exclusions before the headline fee.
Common mistakes with TEV study reports
- Hiring a consultant the bank has not accepted. The report may be set aside. Get written confirmation first.
- Handing over undated or incomplete documents. The consultant has to assume, and the report records each assumption as a weakness. Prepare the full set first.
- Inflating projections. Reviewers test sales and margins against capacity and the market, so one inflated figure puts every other number in doubt.
- Starting after major orders are placed. The study is most useful while scope, location and technology can still change.
Tips before you submit a TEV report
- Ask the bank for its scope document before you request quotations. The scope drives the fee and the schedule.
- Keep one project cost figure across the DPR, the TEV report and the loan application.
- Show promoter equity as money in hand, with bank statements or sanction letters.
- Ask for a late-completion case. A delay pushes revenue out while interest keeps accruing.
- Confirm the consultant will answer lender queries after delivery, and for how long.
Frequently asked questions about TEV study reports
What is the full form of TEV?
TEV stands for Techno-Economic Viability. A TEV study tests whether a project is technically workable and whether its costs and revenues can repay the proposed loan.
Is a TEV study report mandatory for a bank loan?
No single rule or loan size makes it mandatory at every bank. Each lender decides under its own credit policy. The RBI’s rules require one in a single case: a changed Appointed Date for a PPP infrastructure project with ₹100 crore or more of lender exposure.
Who can prepare a TEV report?
A consultant the lender accepts, often one empanelled with that bank. SBI’s January 2026 Lucknow notice, for example, asks for TEV experience with banks and at least three years of empanelment elsewhere. Confirm acceptance with your own lender before you appoint anyone.
How much does a TEV study report cost?
It depends on project cost, sector, sites and lender follow-up. SBI’s January 2026 Lucknow notice cites 0.10% of the project loan amount, capped at ₹0.50 crore plus GST, for its own panel. Ask for a quotation that lists deliverables and exclusions.
How long does a TEV study take?
Project size, document quality, site visits and lender review rounds all affect it. Agree a dated schedule in writing, and state what starts the clock.
What is the difference between a TEV report and a DPR?
A DPR is the promoter’s plan for what to build and earn. A TEV report is a third-party test of whether that plan is technically and financially sound enough for a lender to rely on.
Does a TEV study include a site visit?
Often, because documents cannot show site conditions, utilities or the state of existing machinery. Confirm the lender’s requirement and agree what it checks.
Does a favourable TEV report guarantee loan approval?
No. The report is one input to the lender’s appraisal. The bank still assesses the borrower, the security and its own risk appetite.
What DSCR do banks expect in a TEV report?
There is no universal number. Each lender sets its benchmark and its calculation method, so ask your bank. Check that the report shows DSCR year by year, including a downside case.
What happens if the TEV report is negative?
The file does not have to end there. The report shows which assumptions fail, such as capacity, cost, demand or funding. A promoter may revise the scope, technology, cost or funding plan and ask the lender to reassess.
What documents are needed for a TEV study?
Expect to provide the DPR or project summary, promoter profiles, land and approval documents, vendor quotations and contracts, financials, and proof of promoter contribution. The consultant’s own list may differ, so ask for it first.
If you have further questions, contact our team directly.
Sources: RBI circular RBI/2025-26/59 and Credit Facilities Directions (28 November 2025); SBI Lucknow Circle notice (January 2026); SIDBI notice (April 2024).
Conclusion
The most useful TEV reports show where a project is weak while its design can still change. They also draw fewer lender questions when capacity, cost and cash flow tell one story.
Before you ask for any quotation, ask your bank three things: whether it needs a TEV study for this loan, which consultants it will accept, and what scope or format it expects. The answers set the fee, the schedule and your shortlist.
For a consultant on the study, see our TEV study services in Delhi, call Sapient Services at +91 9540162888, email valuation@sapientservices.com or visit sapientservices.com.
You may also find helpful: our guide to TEV study and LIE services | our guide to due diligence
