Project Formulation and Implementation - A Framework for a Rural Credit Project

This paper outlines a possible framework for credit project formulation and implementation exercise. For this purpose we have abstracted from the present realities and experiences of project approach of rural financing as practiced by many agencies in India, besides heavily relying on the existing conceptual literature on the project appraisal subject. Our suggestions for the adoption of this framework have been seriously influenced by the present experiences and capabilities of the financial agencies in India. In section II we discuss the concept of a credit project. Section III deals with the six aspects namely, technical, managerial, organizational, commercial, financial and economic of project formulation and implementation. While section IV is devoted to the distinction of financial and economic analysis, section V provides an outline of a credit project proposal which could be considered by a financing agency. Final section summarizes the paper.