A TEV study is an independent report that tells a bank whether a project is technically workable and financially able to repay its loan. Banks in India ask for one for most term loans above roughly ₹10–25 crore (thresholds vary by bank), for restructuring proposals, and for any project where the technology, cost estimate or revenue assumptions need outside verification.

When does a bank ask for a TEV study?

  • New projects and expansions financed by term loans.
  • Restructuring or resolution proposals, including under RBI’s prudential framework.
  • Take-over of loans from another lender.
  • Any case where the credit committee wants an independent view of the promoter’s DPR.
A TEV study begins on site: land, access, approvals and contractor capability are verified before a single projection is tested.
A TEV study begins on site: land, access, approvals and contractor capability are verified before a single projection is tested. Photo: iMahesh · CC BY-SA 4.0 · Wikimedia Commons

What does the study actually check?

Four things, in this order: technical soundness (site, technology, approvals, contractor capability, schedule); cost credibility (each capital-cost line against benchmark rates and recent comparable projects); revenue defensibility (offtake, pricing, demand evidence, sensitivity to delay); and debt serviceability (DSCR, IRR and break-even under base and stress cases).

Typical TEV study duration by project size
  • Under Rs 25 Cr2 weeks
  • Rs 25–100 Cr3 weeks
  • Rs 100–500 Cr4 weeks
  • Above Rs 500 Cr6 weeks

Indicative durations from a complete document set. Site visits, third-party approvals and revisions to the projections add time.

How long does it take and what does it cost?

A standard TEV takes 2–4 weeks from receipt of complete information, including a site visit. Complex multi-location or power projects take 4–8 weeks. Fees depend on project size and scope, not loan amount; most banks require the fee to be paid by the borrower directly to the empanelled consultant so the report stays independent.

What should the borrower keep ready?

  • DPR or business plan with capital-cost break-up and quotations
  • Land documents, approvals and clearances obtained or applied for
  • Technology/EPC agreements, supplier tie-ups, offtake or sales agreements
  • Three years’ financials (for existing units) and projections
  • Site access for the engineering team
The site visit is the part of a TEV study that cannot be done from a desk: access, land status and the state of works are checked in person.
The site visit is the part of a TEV study that cannot be done from a desk: access, land status and the state of works are checked in person. Photo: iMahesh · CC BY-SA 4.0 · Wikimedia Commons

Who can prepare a TEV study?

Banks accept reports only from consultants on their empanelled panel. Kakode & Associates is empanelled with 40+ banks and institutions and has completed TEV studies across power, renewables, real estate, infrastructure, hospitality, manufacturing and electric mobility, including mandates above ₹15,000 crore. See TEV Advisory & Feasibility Studies.