Detailed Project Report
Small Diesel Generator Set Assembly
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.03 L
- Term loan from bank
- ₹1.32 L
- Promoter’s contribution
- ₹0.20 L
- Subsidy
- ₹0.51 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.25 L
- Average DSCR
- -11.17
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Couple diesel engines with alternators and control panels into small generator sets (below 7.5 kVA) built to each customer's load.
| Main product or service | Small Diesel Generator Set Assembly |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Shops and small commercial buildings
- Hotels and offices
- Railway stations and telephone exchanges
- Direct orders after a load study
- Electrical contractors and dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Pendant-operated electric hoist, 5 T | 1 | 0 | 0 |
| Welding transformer, 2 kVA | 1 | 0 | 0 |
| Gas cutting equipment | 1 | 0 | 0 |
| Flexible-shaft grinder and bench drill (1/2") (× 1 each) | 1 | 0 | 0 |
| Resistance load bank, 10 kW, and testing panel (× 1 each) | 1 | 0 | 0 |
| All equipment above with spanners, screwdrivers and crimping tools (× 1 set) | 1 | 1,93,420 | 1,93,420 |
| Total | 1,93,420 |
Pre-filled from: KVIC Project Profile — Assembly of Diesel Generator Set (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 85. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Diesel engines, alternators, frames, control panels and batteries — bought per order; raw material ₹2,00,400 a year in the profile
- Labels and packing material — ₹20,000 a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.93 |
| Contingency | 0.10 |
| Total fixed capital | 2.03 |
| Working capital margin | 0.00 |
| Total project cost | 2.03 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.20 | 10.0 |
| Subsidy | 0.51 | 25.0 |
| Term loan from bank | 1.32 | 65.0 |
| Total | 2.03 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 |
| Operating profit (EBITDA) | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 |
| Depreciation | 0.30 | 0.26 | 0.22 | 0.19 | 0.16 | 0.14 | 0.11 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.14 | 0.12 | 0.10 | 0.08 | 0.06 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.38 | -3.31 | -3.25 | -3.20 | -3.15 | -3.10 | -3.06 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.38 | -3.31 | -3.25 | -3.20 | -3.15 | -3.10 | -3.06 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.38 | -3.31 | -3.25 | -3.20 | -3.15 | -3.10 | -3.06 |
| Depreciation | 0.30 | 0.26 | 0.22 | 0.19 | 0.16 | 0.14 | 0.11 |
| Cash accruals (PAT + depreciation) | -3.07 | -3.05 | -3.03 | -3.01 | -2.99 | -2.97 | -2.94 |
| Term loan repaid | 0.10 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.18 | -3.26 | -3.24 | -3.21 | -3.19 | -3.17 | -3.15 |
| Cash and bank | -3.18 | -6.43 | -9.67 | -12.88 | -16.07 | -19.24 | -22.39 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 |
| Reserves and surplus | -3.38 | -6.69 | -9.94 | -13.14 | -16.29 | -19.39 | -22.45 |
| Term loan outstanding | 1.22 | 1.02 | 0.81 | 0.61 | 0.41 | 0.20 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.45 | -4.97 | -8.42 | -11.82 | -15.17 | -18.47 | -21.74 |
| Net fixed assets | 1.73 | 1.47 | 1.25 | 1.06 | 0.90 | 0.77 | 0.65 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.18 | -6.43 | -9.67 | -12.88 | -16.07 | -19.24 | -22.39 |
| Total assets | -1.45 | -4.97 | -8.42 | -11.82 | -15.17 | -18.47 | -21.74 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -11.99 | -8.97 | -9.62 | -10.39 | -11.28 | -12.34 | -13.62 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -11.17 |
|---|---|
| Lowest DSCR | -13.62 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.30 | 0.26 | 0.22 | 0.19 | 0.16 | 0.14 | 0.11 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 1.32 | 0.14 | 0.10 | 1.22 |
| 2 | 1.22 | 0.12 | 0.20 | 1.02 |
| 3 | 1.02 | 0.10 | 0.20 | 0.81 |
| 4 | 0.81 | 0.08 | 0.20 | 0.61 |
| 5 | 0.61 | 0.06 | 0.20 | 0.41 |
| 6 | 0.41 | 0.03 | 0.20 | 0.20 |
| 7 | 0.20 | 0.01 | 0.20 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Check CPCB emission and noise type-approval rules for diesel gensets before selling
- Electrical contractor licence for installation work
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- KVIC Project Profile — Assembly of Diesel Generator Set (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/ASSEMBLY_OF_DIESEL_GENERATOR_SET_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 85 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1685_2022e.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.