The project needs to be examined with particular reference to the following points regarding the technical feasibility.
a) Location- the success of a project depends on its proper location yielding the advantages of nearness to the sources of raw material, labour, availability of power and transport facilities and market. The subsidies and other concessions available at certain specified areas are to be compared with the basic infrastructural aspects.
b) Land and building- the land should necessarily be sufficient to take care of future expansions. If the land is on lease the terms and conditions of the lease to be verified and so also the municipal laws regarding the construction of the building. Actual plant lay out is to be studied before deciding on the size of the building.
c) Plant and machinery- the important aspect to be noted in examining the list of plant and equipments is ascertain the appropriateness of the process of technology, capacity and the related sectional balance amongst various assembly lines. It has to be ensured that the cost of the equipment is based on proper quotations from suppliers and that suitable provisions have been made for insurance freight duty and transportation to site etc. adequate provisions for spare parts is also essential especially if the same have to be imported.