Project Management

Ans.The impact identification and assessment can be made through several ways.Each one represents a methodology. Besides the one already explained, there are six other different methodologies in the literature based on the way the impacts are identified and assessed. A critical overview of the methodologies is given below 1. Ad Hoc: These methodologies provide a minimum guidance for impact assessment. They merely suggest broad areas of possible impacts (e.g.,impacts on lakes, forests, etc.,) rather than defining specific parameters to be investigated. This is given exogenously to the analyst. 2. Overlays: These methodologies depend upon a set of maps on the environmental characteristics (physical, social, ecological, and aesthetic) of the proposed project’s vicinity. These maps are overlaid to produce a composite characterization of the regional environment. Noting the impacted environmental attributes within the project boundaries then identifies impacts. 3. Checklists: ...

Ans. Environmental Impact Assessment (EIA) and the Environmental Impact Statement (EIS) are said to be the instruments through which the environmental management tries to accomplish its objective. The basic premise behind the EIS/EIA is that no one has any right to use the precious environmental resources resulting in greater loss than gain to society. From this, it follows that the aim of EIS is to seek ways by which the project can proceed without any irreparable losses to environment and minimum losses if any, so that the net effect will be a desirable gain. Environmental Impact Assessment (EIA) is defined as: “An activity designed to identify, predict, interpret, and communicate information about the impact of an action on man’s health and well-being (including the well-being of ecosystems on which man’s survival depends). In turn, the action is defined to include any engineering project, legislative proposal, policy programme, or operational procedure with environmental ...

Ans. The effects of actions that are not accounted for in the normal market transactions need to be considered explicitly in the decision making process on projects. These effects are to be identified, assessed, and evaluated against the economic advantages arising out of a given action. In this context, the environmental impact appraisals are considered the first step in the process because they give an opportunity to man to consider the effects of his actions on the environment. Economic development is the result of the interaction between natural resources and technology supported by and designed for people. People are the centre for development. Therefore, it is rightly said that all human activity, be it economic, social or anything else is essentially directed at satisfying “needs” and “wants” of man through “altering” and “using” environmental resources. Types and environmental dimensions of a project Broadly, there are two types of projects. The first one refers t...

Ans. Provisions relating to depreciation According to Section 31 (1) of the Income Tax Act, depreciation at prescribed rates on the actual cost (as determined in the manner stated in the preceding heading) in respect of (i) buildings, plant and machinery and furniture and fittings being tangible assets and (ii) know-how, patents,copyrights, trademarks, licences, franchises or other business other business or commercial rights being intangible assets used for business/professional purposes is a tax deductible expenses. For claiming the depreciation allowance, the assets should be owned and used for the purpose of business by the assessee. When a capital asset is imported, by incurring a liability in foreign exchange and the rupee equivalent of such liability is outstanding at the end of each year or at the time of repayment increases/decreases due to fluctuation in rates of exchange then such increases/decreases are adjusted against the actual cost (Section 43 A).The actual co...

Ans. The Capital Issues Control Act, 1947 (and the exemption orders and rules made there under) was the primary legislation regulating the issue of securities by the corporate sector till recently. This Act was repealed in May 1992 and capital issues were brought under the purview of the Securities Exchange Board of India (SEBI hereafter) which was clothed with statutory powers when the SEBI Act, 1992 was passed. On June 12, 1992, SEBI released its guidelines applicable to capital issues. A comparison of these guidelines with the guidelines that were followed under the earlier regime (that is under the Capital Issues Control Act, 1947) suggests that the thrust of regulation is no longer on product and price control. In the earlier regime, there were restrictions on the kinds of securities that could be issued, the pricing of these securities, and .the interest rates or dividend rates payable on them. Under the new regime there is virtually no restriction on the types of secur...

Ans. The various aspects of financial institutions and their functioning in India, is divided into six sections as follows : Institutional Structure Financial assistance : direct and indirect Special schemes Term loan procedures Project appraisal Key financial indicators Institutional Structure The structure of financial institutions in India is as follows : I. All India institutions Industrial Finance Corporation of India Industrial Credit and Investment Corporation of India Industrial Development Bank of India Other all-India institutions II. State-level institutions State Financial Corporations State Industrial Development Corporations Industrial Finance Corporation of India (IFCI) Industrial Finance Corporation of India (IFCI)- The IFCI is the first industrial financing institution to be Set up in India soon alter independence. It was set up as a statutory corporation in July, 1948 But was later converted in to a...

Ans. Finance is the lubricant of the process of economic growth. When finance mode is available, industrial activities can be initiated which gives rise to new investment opportunities towards industrialization. The Indian financial institutions have been very important constituent of the Indian economy. This importance they have derived from their financial muscle and they have linked it to the industrial development in the country. For years now the Indian financial institutions have been the life line of credit for the Indian corporate. This has been mainly because of their strong financial muscle and the various concessions they received from the Central Government for their role. In India, special financial institutions have been developed to provide finance to the upliftment of industrial activities in all regions so as to sustain an equitable industrial growth in the county. Financial assistance is being extended to the industrial enterprises by the financial institution...