EDP Notes

The different classifications are explained below:
1) QUANTIFIABLE AND NON-QUANTIFIABLE PROJECTS:
Quantifiable projects are those in which quantitative assessment of benefits can be made. Projects
for industrial development, power generation, mineral development etc. fall under this category.
Non quantifiable projects are those in which the benefits cannot be measured quantitatively.
Projects involving health, education and defence fall under this category.
2) SECTORAL PROJECTS:
According to planning commission of India, a project may fall in the following sectors:
a) Agriculture and allied sector.
b) Irrigation and power sector.

c) Miscellaneous sector.
d) Transport and communication sector.
e) Industry and mining sector.
This classification is useful for resources allocation at macro levels.
3) TECHNO-ECONOMIC PROJECTS:
Projects may be classified into the following three groups:
A) Factor Intensity Oriented Classification: Project may be classified as Capital intensive or
Labour intensive. If large investment is made in plant and machinery the project will be called
Capital intensive. If large investment is made in human resources, the projects will be termed as
Labour-intensive.
B) Causation Oriented Classification: It is classified as demand based or raw material based
projects. If a project is started by an entrepreneur due to non-availability of certain goods or
services and consequent demand for such goods or services the project is said to be based on
demand. If project is started by an entrepreneur simply because of the availability of certain raw
materials, skills or other imputs, the project is said to be based on raw material.
C) Magnitude Oriented Classification: The size of investment forms the basis of classification.
May be classified as Large-scale, Medium-scale and Small-scale.
4) FINANCIAL INSTITUTIONS CLASSIFICATION:
The projects are classified according to their age and experience and the purpose for which the
project is being taken up. They are as follows:
A) Profit Oriented Projects:
1) New projects.
2) Expansion projects.
3) Modernization projects.
4) Diversification projects.
B) Service Oriented Projects:
1) Welfare projects.
2) Service projects.
3) Research and development projects.
5) ACCORDING TO THE URGENCY OF THE EXECUTION:
It is classified into three. They are as follows:
A) Normal Projects: In this type of project adequate time is allowed for implementation.
This type of project will require minimum capital cost.
B) Crash Projects: Additional capital costs are incurred to save time. It is normally
achieved in procurement and construction where time is brought from vendors and contractors by
paying extra money to them.

C) Disaster Projects: Vendors who can supply within a very short time are selected
irrespective of the cost. Naturally capital cost will go up very high but projects time will get much
reduced.