Detailed Project Report
Papaya Farming
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.03 L
- Term loan from bank
- ₹0.93 L
- Promoter’s contribution
- ₹0.10 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.09 L
- Average DSCR
- -15.71
- 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
Growing papaya on one acre with 1,700 seedlings and drip irrigation; a three-year crop that gives fruit from the second year.
| Main product or service | Papaya Farming |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Wholesalers and middlemen at the farm gate
- Fruit mandis and retailers in nearby cities
- Papain and fruit processing units
- Farm-gate sale to wholesalers
- Bamboo baskets by truck to the local market
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Tube well with submersible pump | 1 | 45,000 | 45,000 |
| Drip irrigation system with fertigation equipment (× for 1 acre) | 1 | 25,000 | 25,000 |
| Labour shed | 1 | 5,000 | 5,000 |
| Farm implements | 1 | 3,500 | 3,500 |
| Fencing | 1 | 20,000 | 20,000 |
| Total | 98,500 |
Pre-filled from: National Horticulture Board model bankable project — Papaya. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Planting material — papaya seedlings of an improved variety — 1,700 plants an acre at ₹2 a plant, spaced 1.5 m x 1.5 m
- Manures and fertilisers — first-year provision in the model
- Insecticides and pesticides — first-year provision in the model
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.99 |
| Contingency | 0.05 |
| Total fixed capital | 1.03 |
| Working capital margin | 0.00 |
| Total project cost | 1.03 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.10 | 10.0 |
| Term loan from bank | 0.93 | 90.0 |
| Total | 1.03 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 | 2.91 |
| Operating profit (EBITDA) | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 | -2.91 |
| Depreciation | 0.16 | 0.13 | 0.11 | 0.10 | 0.08 | 0.07 | 0.06 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.10 | 0.09 | 0.07 | 0.06 | 0.04 | 0.02 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.16 | -3.13 | -3.09 | -3.06 | -3.03 | -3.00 | -2.97 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.16 | -3.13 | -3.09 | -3.06 | -3.03 | -3.00 | -2.97 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.16 | -3.13 | -3.09 | -3.06 | -3.03 | -3.00 | -2.97 |
| Depreciation | 0.16 | 0.13 | 0.11 | 0.10 | 0.08 | 0.07 | 0.06 |
| Cash accruals (PAT + depreciation) | -3.01 | -2.99 | -2.98 | -2.96 | -2.95 | -2.93 | -2.91 |
| Term loan repaid | 0.07 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.08 | -3.14 | -3.12 | -3.10 | -3.09 | -3.07 | -3.06 |
| Cash and bank | -3.08 | -6.21 | -9.34 | -12.44 | -15.53 | -18.60 | -21.66 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Reserves and surplus | -3.16 | -6.29 | -9.38 | -12.43 | -15.46 | -18.46 | -21.43 |
| Term loan outstanding | 0.86 | 0.72 | 0.57 | 0.43 | 0.29 | 0.14 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.20 | -5.47 | -8.70 | -11.90 | -15.07 | -18.21 | -21.33 |
| Net fixed assets | 0.88 | 0.75 | 0.64 | 0.54 | 0.46 | 0.39 | 0.33 |
| 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 | -3.08 | -6.21 | -9.34 | -12.44 | -15.53 | -18.60 | -21.66 |
| Total assets | -2.20 | -5.47 | -8.70 | -11.90 | -15.07 | -18.21 | -21.33 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -16.86 | -12.61 | -13.53 | -14.60 | -15.86 | -17.35 | -19.15 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -15.71 |
|---|---|
| Lowest DSCR | -19.15 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.16 | 0.13 | 0.11 | 0.10 | 0.08 | 0.07 | 0.06 |
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 | 0.93 | 0.10 | 0.07 | 0.86 |
| 2 | 0.86 | 0.09 | 0.14 | 0.72 |
| 3 | 0.72 | 0.07 | 0.14 | 0.57 |
| 4 | 0.57 | 0.06 | 0.14 | 0.43 |
| 5 | 0.43 | 0.04 | 0.14 | 0.29 |
| 6 | 0.29 | 0.02 | 0.14 | 0.14 |
| 7 | 0.14 | 0.01 | 0.14 | 0.00 |
17 Licences and registrations
- No licence is needed to grow fruit on your own or leased farm land
- Land ownership or registered lease papers (banks and subsidy offices ask for them)
- Permission for a new borewell where the state groundwater authority requires it
- For export: Import Export Code, APEDA registration and a phytosanitary certificate
18 Government schemes that may apply
- NHB Capital Investment Subsidy – Commercial Horticulture & Cold Storage (Scheme 1 and Cold Storage Scheme)
19 Sources
- National Horticulture Board model bankable project — Papaya — https://nhb.gov.in/model-project-reports/Papaya.htm
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.