In case of private sector projects, evaluation is done in terms fo the commercial profitability of a project. But in the case of public projects like irrigation projects, power projects, transport projects or other infrastructure projects or social as important as commercial profitability and sometimes more important than commercial profitability. Even in respect of projects sponsored by private entrepreneurs, national profitability analysis is important, particularly in developing countries because of the need to optimize the utilization of scarce resources. The national profitability of a project is measured by assessing the extent to which it makes a net contribution to meeting the socio-economic objectives of development.

National profitability analysis essentially involves social cost-benefit analysis (SCBA). Every project entails some costs to the nation and produces certain benefits. The contribution of the project to social objectives such as employment, health delivery system, transport, communication, earning of foreign exchange, import substitution, etc. are evaluated. In the Indian context, the socio-economic viability of project may be judged on the basis of its net contribution to the following objectives:

(i)    Generation of employment.
(ii)    Income distribution.
(iii)    Foreign exchange earnings/savings.
(iv)    Self-reliance.
(v)    Development of backward regions.
(vi)    Development of small-scale and ancillary industries.
(vii)    Development of infrastructure.
(viii)    Development of technology.
(ix)    Improvement of quality of life of the general public.

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