As Stephen Muecke said in the comment section that Projects and Clients are 2 different things. You should have a Client table and a separate Project table containing a column with foreign key to the Client table. So below solution is according to your existing table structure.

Dummy Schema

DECLARE @clientprj TABLE ([id] int identity(1,1), [name] varchar(30), Desc1 varchar(30), ParentId int, pType varchar(30));

INSERT @clientprj ([name], Desc1, ParentId, pType) VALUES ('client1', '', 0, 'clt'), ('prj1', '', 1, 'prj'), ('prj2', '', 1, 'prj'), ('client2', '', 0, 'clt'), ('prj n', '', 4, 'prj')

and Here is the query

SELECT GroupName, GroupKey, ProjName, ProjId
        SELECT NAME AS GroupName
            ,Id AS GroupKey
        FROM @clientprj m
        WHERE ParentId = 0
        ) m 
        SELECT NAME AS ProjName
            ,Id AS ProjId
        FROM @clientprj
    t ON m.GroupKey = t.ParentId
WHERE ParentId <> 0

Which return the following output.

GroupName   GroupKey    ProjName    ProjId
client1       1           prj1           2
client1       1           prj2           3
client2       4           prj n          5

and your controller method which calls this query like this -

Model.ddlProject = db.NewMethod
                    .Select(t => new GroupedSelectListItem
                       GroupName = t.GroupName,
                       GroupKey = t.GroupKey.ToString(),
                       Text = t.ProjName,
                       Value = t.ProjId.ToString()

and then bind your dropdownlist. Best of luck...

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