Support: +91-22-61011756 / help@projectstoday.com

Glossary

Definitions of terms used in Projects Today

Projects Today monitors projects envisaged in the Manufacturing, Mining, Power, Services and Utilities and Irrigation Sectors.

Project: Any capital investment activity aiming to install additional capacity or increase the existing capacity to manufacture goods or to provide a service is defined as a project.

Project Investment: Total amount of money spent on a project from conception till completion. This includes the initial fee paid to project consultants, cost of land and building, plant and machinery, initial working capital requirements, etc. The project cost is always taken in nominal terms.

Project Types: A project listed in Projects Today database belongs to one of the following types

New Unit - Greenfield project
New product/services - An existing company plans to diversify into manufacturing a new good or decides to provide a new branch of service.
Capacity expansion - A brownfield project wherein a company plans to expand the capacity of its existing unit.
Renovation & modernization - Capital expenditure program to renovate the existing manufacturing lines by replacing/refurbishing machineries or by adding some balancing equipments.
Rehabilitation - A complete revamping of a sick unit either by the existing owner or by a new owner.

Stages of Project Implementation

Every project is monitored from its conception till completion. The progress of a project is tracked by a status, which is dynamic in nature. The standing of a project, as suggested by the status, is therefore true to that point of time when the status was accorded.

The status of a project, at a given point of time, can be one of the following:

Nascent
Planning
Under Execution
Partially Completed
Completed
Abandoned
Shelved
Deferred

Nascent

At this stage the promoter announces his intention to set up a project or provide a service. As the promoter himself is not very clear about the various nuances of the project, project details available to the general public are sketchy.

Projects, which have one or more of the following attributes, are accorded 'nascent' status

Project size and scope not known
Feasibility of the project not established
MoU signed with the State government (as in the case of infrastructure projects)
Approval of PIB is awaited (as in the case of Central PSU projects)
Project location to be finalized
Land allocated but not transferred in the company’s name
Exact cost not known
Envisaged capacity not known
Project partners not identified
Equity stake of project partners not yet finalized
Sanctioning of funds awaited
License agreement not signed with the respective agencies (telecommunication project)
Bids invited by State government for awarding a project (typically infrastructure projects)

Planning

Once the viability of the project is established, the main promoter starts charting out the roadmap for project implementation.

At this stage the scope of the project becomes clear. The location, cost and capacity are, by and large, finalized. The promoter starts looking out for partners and approaches various government agencies for the necessary approvals. In the case of large projects, global tenders are also floated for awarding the main EPC contract.

Projects that achieve one or more of the following milestones are assigned Planning status

Approval of Public Investment Board received (Projects of Central PSUs)
Approval of CCEA or CCFI received (in case of large projects)
FDI proposals cleared by the FIPB, SIA or RBI
Land acquired
PPA signed with the SEB
CEA in-principle clearance received
PPA revised and signed
CEA techno-economic clearance received
Agreement signed with DGFT on export commitments
License agreement signed
Project partners identified
Equity contribution by different partners decided
Project capacity or scope defined
EPC contractor shortlisted
Bids awarded
Fuel supplier identified and FSA signed

Under Execution

After obtaining the necessary clearances and achieving the financial closure, a project enters the execution stage. The actual implementation of a project starts with the laying of the foundation stone and placing orders for plant and machinery. In case of infrastructure projects, the rehabilitation work of the displaced land occupants is also undertaken concurrently.

Projects that pass through one or more of the following stages are accorded the Under Execution status.

EPC Contracts awarded
Rehabilitation of land occupants commenced
Plant and Machinery ordered
Plant and Machinery arrived at the site
Counter guarantee and other guarantees obtained
Financial closure announced
Funds allocated in the union budget.
Company enters the primary markets to raise funds
First installment of license fee paid (telecommunication)
Civil work commenced

Partially Completed

Infrastructure projects like power, roadways and railways generally have large outlays and long gestation periods. These composite projects are therefore implemented in stages.

If the cost and time of each stage become available separately, every stage is considered as an individual project.

However, in some cases, the phase-wise breakup of the costs and implementation schedules are either not disclosed or are not available. Such projects are therefore treated in their entirety. When a portion of such a composite project is completed and commercial operation starts, the Partially Completed status is assigned to the project.