What indicators are typically used to evaluate SAMPADA project viability?

• A. IRR, NPV, payback period, job creation, value addition, and wastage reduction
• B. Only IRR
• C. Market share and branding metrics
• D. Employee satisfaction scores

Answer: (A)

Evaluating SAMPADA project viability requires looking at both financial returns and the development impact the project aims to deliver. The indicators blend traditional investment appraisal with program-specific outcomes. Financial metrics like internal rate of return show the expected generosity of returns on the investment, while net present value translates all future cash flows into today’s value to indicate overall value creation. The payback period provides a sense of how quickly the investment is recovered, which matters for liquidity and risk.

In addition, development-focused measures matter more in this context: job creation tracks livelihoods and employment impact; value addition assesses how the project enhances processing capacity and economic activity; wastage reduction reflects better efficiency and resource use, which are central to sustainability goals.

Relying on a single financial ratio or on metrics that don’t tie to the project’s objectives can miss important effects. For example, market share and branding focus on competitiveness rather than whether the project itself is financially viable or delivers tangible development benefits, and employee satisfaction, while important, doesn’t directly measure viability or broader impact.