BMBAB305

Project Finance and Appraisal for Agribusiness

L-T-P3-0-0 Credits3 Session2025-26 TypeTheory
Appears in 1 semester

MBA Agribusiness Management · Sem 3 (Core)

Syllabus

5 units · 48 lecture hours
Unit1

Unit 1: Introduction to Project Finance

9 hrs

Overview of project finance in agribusiness; Importance and role of project finance in agricultural development; Types of agribusiness projects: production, processing, infrastructure; Project life cycle and stages; Sources of project finance: equity, debt, grants, subsidies; Role of financial institutions and government schemes in agribusiness project financing

Unit2

Unit 2: Project Identification and Feasibility Analysis

9 hrs

Project identification and screening; Market analysis for agribusiness projects; Technical feasibility: location, technology, capacity planning; Financial feasibility: cost estimates, revenue projections; Economic feasibility and social considerations; Environmental impact assessment; Case studies on project feasibility in various agribusiness sectors

Unit3

Unit 3: Project Costing and Financial Planning

10 hrs

Estimation of project costs: fixed and variable costs; Working capital requirements and management; Preparation of project financial statements: projected income statement, balance sheet, cash flow statement; Sources of funds and capital structure for projects; Financial planning and budgeting for agribusiness projects; Case examples of project cost structuring

Unit4

Unit 4: Project Appraisal Techniques

10 hrs

Concept and objectives of project appraisal; Financial appraisal techniques: Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), Profitability Index; Sensitivity analysis and risk assessment in project appraisal; Break-even analysis and cash flow risk evaluation; Social cost-benefit analysis and project sustainability; Case studies illustrating project appraisal in agribusiness

Unit5

Unit 5

10 hrs

Project Implementation, Monitoring, and Evaluation Project implementation process and challenges; Earned Value Analysis (EVA); Monitoring project progress and performance indicators; Post-implementation review and project evaluation; Role of audit and feedback mechanisms; Managing project risks and mitigation strategies; Examples of successful and failed agribusiness projects with lessons learned

Course Outcomes (COs)5 outcomes

After completion of the course student will be able to:

  1. CO1Describe the role, stages, and sources of project finance in the context of agribusiness. –K2 (Understanding)
  2. CO2Conduct feasibility analysis considering market, technical, financial, and environmental factors. – AnalysingK4
  3. CO3Prepare cost estimates, financial plans, and funding structures for agribusiness projects. – ApplyingK3
  4. CO4Evaluate projects using financial appraisal techniques and risk assessment tools. – EvaluatingK5
  5. CO5Monitor and assess project implementation through scheduling, performance indicators, and post-evaluation methods. – CreatingK6

Suggested Readings

  1. Prasanna Chandra, Projects: Planning, Analysis, Financing, Implementation and Review, McGraw Hill
  2. James, C. & Mishra, A. Agribusiness Management, McGraw Hill
  3. Van Horne, J.C., Financial Management and Policy, Pearson Education
  4. Acharya, S.S. & Agarwal, N.L., Agricultural Marketing in India, Oxford & IBH
  5. Selected case studies and articles from Journal of Agribusiness and Agricultural Finance Review

Official AKTU syllabus

This subject is on page 12, 13 of the original AKTU PDF.

Official AKTU syllabus PDF ↗