FT-418FA: PROJECT FINANCE

COURSE CONTENTS
1. Overview of Project Management I:
Meaning and characteristics of a project; Project planning – Tools of project planning, Gantt
chart, Concepts of networking, Hierarchy of charts, prerequisite of successful project
implementation.
2. Overview of Project Management II:
Generating and screening of project ideas; overview of market, demand and technical analysis.
Numerical Problems/Case Study
3. Project Finance Introduction:
Meaning and common features of project financing in India, Difference with corporate financing,
Project finance why, Structure of project finance, advantage and disadvantage of project
financing.
4. Sources of Project Financing:
Structuring the Project Vehicle; Key Sponsor Issues; Sources for financing a project- Equity,
Developmental loan, Subordinated loans, Senior debt, Syndicated loans, World Bank group
financing sources, Export credit agencies, Bonds, Institutional lenders, Lease and Hire purchase
Financing, Vendor financing of equipment, Supplier financing, Host government; Public private
Partnership in India; Guarantee; Insurance issue; Case Study
5. Estimation of Profitability of Projects:
A review to Time Value of Money, Investment Criteria for Project Decisions, NPV, Benefit Cost
Ratio, Internal Rate of Return, etc., Multiple Projects and Constraints, Special Decision
Situations, Numerical Problems/Case Study.
6. Financial Estimates and Projections:
Overview of Cost of capital and weighted average cost of capital (WACC) concepts, Numerical
Problems/Case Studies on weighted average cost of capital for projects; Project Elements and
basic principles of Cash flow estimation of project, Numerical Problems/Case Study;
Profitability Projections (Estimation of working results), Numerical Problems/Case Study.
7. Project Risk Analysis: Sources of risk, Project finance participant risk, Sensitivity analysis,
Scenario analysis, and Break Even Analysis, Numerical Problems/Case Study.

SUGGESTED BOOKS
“PROJECTS” Planning Analysis, Selection, Financing, Implementation, and Review by
Prasanna Chandra, Tata Mc Graw Hill Publishing Company Ltd., Latest Edition.
‘Introduction to Project Finance’ edited by Andrew Fight, Butterworth-Heinemann an imprint
of Elsevier, Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Burlington, MA
01803 “Project Management” by Vasant Desai, Himalaya Publishing House.