The proposed New Nagpur International Business & Finance Centre (IBFC) is a large greenfield urban-business development planned by the Nagpur Metropolitan Region Development Authority (NMRDA). Public documents indicate that the project was approved in 2025 with an estimated cost of ₹6,500 crore, including ₹3,000 crore for land acquisition and ₹3,500 crore for development, while subsequent government documents in 2026 revised the financing and guarantee structure. This study examines the project from a capital budgeting and financial flexibility perspective. The paper focuses on net present value (NPV), internal rate of return (IRR), payback, sensitivity analysis, scenario analysis and real-optiontype flexibility arising from phased land acquisition, staged infrastructure investment, timing of development and expansion. Because the project is still under development and public sources do not provide a complete operating cashflow forecast, the paper does not present an assumed financial return as an official project forecast. Instead, an illustrative ten-year cash-flow model is constructed solely to demonstrate how investment appraisal can be applied to a project of this scale. The study finds that flexibility can materially affect capital-budgeting outcomes because investment can be staged as demand, financing conditions and development milestones become clearer. The paper recommends that the project appraisal should be updated periodically using an approved detailed project report, actual financing terms, land-acquisition expenditure, development costs, occupancy assumptions and measurable cash-flow estimates.

Akshata Dinesh Mankar, "Flexibility and Capital Budgeting Study of The New Nagpur International Business & Finance Centre (IBFC)" International Journal of Scientific Research and Engineering Development, V9(5): Page(525-529) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.