Detailed Project Report
Elastic Rail Clips (Forged Spring Steel)
—
Prepared on: 26 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹17.48 L
- Term loan from bank
- ₹15.73 L
- Promoter’s contribution
- ₹1.75 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.42 L
- Average DSCR
- -1.06
- 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
Forge spring steel bars into the elastic clips that hold rails tight on concrete sleepers, to Indian Railways (RDSO) design.
| Main product or service | Elastic Rail Clips (Forged Spring Steel) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Indian Railways (zonal railways and track contractors)
- Railways in Middle-East countries
- Automobile and machinery makers (other forgings)
- Railway tenders after RDSO vendor approval
- Supply through track-laying contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Shearing machine, 1 in capacity | 1 | 85,000 | 85,000 |
| Power press | 1 | 2,00,000 | 2,00,000 |
| Blanking machine, 100 MT | 1 | 1,50,000 | 1,50,000 |
| Oil-fired heat treatment furnaces, 650 kg an hour (× 2) | 1 | 3,25,000 | 3,25,000 |
| Oil-fired tempering furnace | 1 | 0 | 0 |
| Pedestal grinders, 12 in wheel (× 2) | 1 | 70,000 | 70,000 |
| Universal testing machine | 1 | 4,50,000 | 4,50,000 |
| Deflection testing machine | 1 | 50,000 | 50,000 |
| Rockwell-cum-Brinell hardness tester | 1 | 35,000 | 35,000 |
| Diesel generator set, 30 kVA | 1 | 1,25,000 | 1,25,000 |
| Dies, tools and fixtures (× 1 lot) | 1 | 1,75,000 | 1,75,000 |
| Total | 16,65,000 |
Pre-filled from: DC-MSME project profile — Rail Elastic Clip; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- EN-45 spring steel rounds, 20–22 mm — 60 MT a month at ₹30,000 a MT in the profile
- Light diesel oil for furnaces — 10,000 litres a month in the profile
- Quenching oil
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.65 |
| Contingency | 0.83 |
| Total fixed capital | 17.48 |
| Working capital margin | 0.00 |
| Total project cost | 17.48 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.75 | 10.0 |
| Term loan from bank | 15.73 | 90.0 |
| Total | 17.48 | 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 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 |
| Insurance | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Total cost of operations | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 | 3.32 |
| Operating profit (EBITDA) | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 | -3.32 |
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.70 | 1.48 | 1.21 | 0.94 | 0.68 | 0.41 | 0.14 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.64 | -7.02 | -6.42 | -5.87 | -5.36 | -4.89 | -4.45 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.64 | -7.02 | -6.42 | -5.87 | -5.36 | -4.89 | -4.45 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.64 | -7.02 | -6.42 | -5.87 | -5.36 | -4.89 | -4.45 |
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
| Cash accruals (PAT + depreciation) | -5.02 | -4.79 | -4.53 | -4.26 | -3.99 | -3.73 | -3.46 |
| Term loan repaid | 1.21 | 2.42 | 2.42 | 2.42 | 2.42 | 2.42 | 2.42 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -6.23 | -7.21 | -6.95 | -6.68 | -6.41 | -6.15 | -5.88 |
| Cash and bank | -6.23 | -13.44 | -20.39 | -27.07 | -33.49 | -39.63 | -45.52 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 | 1.75 |
| Reserves and surplus | -7.64 | -14.66 | -21.09 | -26.96 | -32.32 | -37.21 | -41.66 |
| Term loan outstanding | 14.52 | 12.10 | 9.68 | 7.26 | 4.84 | 2.42 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.63 | -0.81 | -9.65 | -17.95 | -25.73 | -33.04 | -39.91 |
| Net fixed assets | 14.86 | 12.63 | 10.74 | 9.13 | 7.76 | 6.59 | 5.60 |
| 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 | -6.23 | -13.44 | -20.39 | -27.07 | -33.49 | -39.63 | -45.52 |
| Total assets | 8.63 | -0.81 | -9.65 | -17.95 | -25.73 | -33.04 | -39.91 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.14 | -0.85 | -0.91 | -0.99 | -1.07 | -1.17 | -1.29 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.06 |
|---|---|
| Lowest DSCR | -1.29 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.62 | 2.23 | 1.89 | 1.61 | 1.37 | 1.16 | 0.99 |
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 | 15.73 | 1.70 | 1.21 | 14.52 |
| 2 | 14.52 | 1.48 | 2.42 | 12.10 |
| 3 | 12.10 | 1.21 | 2.42 | 9.68 |
| 4 | 9.68 | 0.94 | 2.42 | 7.26 |
| 5 | 7.26 | 0.68 | 2.42 | 4.84 |
| 6 | 4.84 | 0.41 | 2.42 | 2.42 |
| 7 | 2.42 | 0.14 | 2.42 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Vendor approval with RDSO / Indian Railways for track items
- State Pollution Control Board consent (furnace and noise)
- Factory licence under the Factories Act
- Registration on the GeM / Indian Railways e-procurement portal for tenders
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- DC-MSME project profile — Rail Elastic Clip — https://www.dcmsme.gov.in/publications/pmryprof/meatllurgical/ch20.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.