Detailed Project Report
Oil Tanker Truck Hire Business
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹52.50 L
- Term loan from bank
- ₹42.25 L
- Promoter’s contribution
- ₹5.25 L
- Subsidy
- ₹5.00 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-13.13 L
- Average DSCR
- -0.50
- 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
Buy two 6-tyre tanker trucks and hire them out to carry oil for oil companies and contractors.
| Main product or service | Oil Tanker Truck Hire Business |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Oil marketing companies and refiners
- Chemical companies
- Contractors working for government oil and gas companies
- Transport tenders from oil companies
- Hire contracts with depots and contractors
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Oil tanker truck, 6 tyres (× 2) | 1 | 50,00,000 | 50,00,000 |
| Total | 50,00,000 |
Pre-filled from: PMEGP sample project report — Tank Truck (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Diesel — ₹10.80 L in year 1 (half year), ₹25.96 L in year 5 in the projections
- Tyres, repairs and consumables
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 50.00 |
| Contingency | 2.50 |
| Total fixed capital | 52.50 |
| Working capital margin | 0.00 |
| Total project cost | 52.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 5.25 | 10.0 |
| Subsidy | 5.00 | 9.5 |
| Term loan from bank | 42.25 | 80.5 |
| Total | 52.50 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
PMEGP: project cost is above the PMEGP cap — subsidy is on the cap only.
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 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 |
| Insurance | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Total cost of operations | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 | 4.19 |
| Operating profit (EBITDA) | -4.19 | -4.19 | -4.19 | -4.19 | -4.19 | -4.19 | -4.19 |
| Depreciation | 7.88 | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 4.57 | 3.96 | 3.25 | 2.53 | 1.82 | 1.10 | 0.39 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -16.64 | -14.85 | -13.13 | -11.56 | -10.12 | -8.79 | -7.55 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -16.64 | -14.85 | -13.13 | -11.56 | -10.12 | -8.79 | -7.55 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -16.64 | -14.85 | -13.13 | -11.56 | -10.12 | -8.79 | -7.55 |
| Depreciation | 7.88 | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 |
| Cash accruals (PAT + depreciation) | -8.77 | -8.15 | -7.44 | -6.72 | -6.01 | -5.29 | -4.58 |
| Term loan repaid | 3.25 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 | 6.50 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -12.02 | -14.65 | -13.94 | -13.22 | -12.51 | -11.79 | -11.08 |
| Cash and bank | -12.02 | -26.67 | -40.61 | -53.83 | -66.34 | -78.14 | -89.22 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 10.25 | 10.25 | 10.25 | 10.25 | 10.25 | 10.25 | 10.25 |
| Reserves and surplus | -16.64 | -31.49 | -44.62 | -56.18 | -66.30 | -75.09 | -82.64 |
| Term loan outstanding | 39.00 | 32.50 | 26.00 | 19.50 | 13.00 | 6.50 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 32.61 | 11.26 | -8.37 | -26.43 | -43.05 | -58.34 | -72.39 |
| Net fixed assets | 44.63 | 37.93 | 32.24 | 27.41 | 23.29 | 19.80 | 16.83 |
| 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 | -12.02 | -26.67 | -40.61 | -53.83 | -66.34 | -78.14 | -89.22 |
| Total assets | 32.61 | 11.26 | -8.37 | -26.43 | -43.05 | -58.34 | -72.39 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.54 | -0.40 | -0.43 | -0.46 | -0.50 | -0.55 | -0.61 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.50 |
|---|---|
| Lowest DSCR | -0.61 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 7.88 | 6.69 | 5.69 | 4.84 | 4.11 | 3.49 | 2.97 |
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 | 42.25 | 4.57 | 3.25 | 39.00 |
| 2 | 39.00 | 3.96 | 6.50 | 32.50 |
| 3 | 32.50 | 3.25 | 6.50 | 26.00 |
| 4 | 26.00 | 2.53 | 6.50 | 19.50 |
| 5 | 19.50 | 1.82 | 6.50 | 13.00 |
| 6 | 13.00 | 1.10 | 6.50 | 6.50 |
| 7 | 6.50 | 0.39 | 6.50 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Vehicle registration certificate and insurance (the report lists them)
- Goods carriage permit from the RTO
- PESO approval for tankers carrying petroleum (Petroleum Rules)
- Fire/pollution clearances as required (the report)
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
- Prime Minister's Employment Generation Programme (PMEGP)
19 Sources
- PMEGP sample project report — Tank Truck (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Tank_Truck_%28_Samadhan_Projects_%29.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.