Detailed Project Report
Plastic Waste Recycling (Granules)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹35.65 L
- Term loan from bank
- ₹23.17 L
- Promoter’s contribution
- ₹3.56 L
- Subsidy
- ₹8.91 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-9.42 L
- Average DSCR
- -0.82
- 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
Sort, wash and melt waste plastic into granules that moulding units buy as a cheaper raw material.
| Main product or service | Plastic Waste Recycling (Granules) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Plastic moulding units making buckets, mugs and poly bags
- Granule traders and wholesalers
- Direct sale to moulding units
- Through scrap and granule traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Grinder 8 inch, 30–50 kg/h, 20 HP | 1 | 75,000 | 75,000 |
| Grinder 18 inch, 300–400 kg/h, 25 HP | 1 | 3,00,000 | 3,00,000 |
| Grinder 40 inch, 1 tonne/h, 80 HP | 1 | 7,50,000 | 7,50,000 |
| Dust cleaner drum (24 inch, 20 HP) | 1 | 1,50,000 | 1,50,000 |
| Dust cleaner drum (8 ft, 20 HP) | 1 | 1,50,000 | 1,50,000 |
| Boat-type conveyor washing plant (3 HP) | 1 | 2,00,000 | 2,00,000 |
| Round drum washer (30 HP) | 1 | 1,80,000 | 1,80,000 |
| Hydro dryer (3 HP) | 1 | 90,000 | 90,000 |
| Film dryer (20 HP) | 1 | 2,50,000 | 2,50,000 |
| Mixer machine (30 HP) | 1 | 1,50,000 | 1,50,000 |
| Agglomerator plant (50 HP) | 1 | 2,50,000 | 2,50,000 |
| Recycling extruder for PP/HM/HDPE/LLDPE/PVC (25 HP, 100–150 kg/h) | 1 | 8,50,000 | 8,50,000 |
| Total | 33,95,000 |
Pre-filled from: PMEGP sample project report — Plastic Waste Recycling (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 39. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Plastic scrap — cheap quality — ₹7–8 per kg in the report
- Plastic scrap — good quality — ₹10–12 per kg; the projections use ₹10 per kg in year 1
- Water for washing — used in conveyor and drum washing
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 33.95 |
| Contingency | 1.70 |
| Total fixed capital | 35.65 |
| Working capital margin | 0.00 |
| Total project cost | 35.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.56 | 10.0 |
| Subsidy | 8.91 | 25.0 |
| Term loan from bank | 23.17 | 65.0 |
| Total | 35.65 | 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 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 |
| Insurance | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 |
| Total cost of operations | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 | 3.77 |
| Operating profit (EBITDA) | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 | -3.77 |
| Depreciation | 5.35 | 4.55 | 3.86 | 3.28 | 2.79 | 2.37 | 2.02 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 2.51 | 2.17 | 1.78 | 1.39 | 1.00 | 0.60 | 0.21 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -11.63 | -10.49 | -9.42 | -8.44 | -7.56 | -6.75 | -6.00 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -11.63 | -10.49 | -9.42 | -8.44 | -7.56 | -6.75 | -6.00 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -11.63 | -10.49 | -9.42 | -8.44 | -7.56 | -6.75 | -6.00 |
| Depreciation | 5.35 | 4.55 | 3.86 | 3.28 | 2.79 | 2.37 | 2.02 |
| Cash accruals (PAT + depreciation) | -6.28 | -5.94 | -5.55 | -5.16 | -4.77 | -4.38 | -3.98 |
| Term loan repaid | 1.78 | 3.56 | 3.56 | 3.56 | 3.56 | 3.56 | 3.56 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -8.06 | -9.51 | -9.12 | -8.72 | -8.33 | -7.94 | -7.55 |
| Cash and bank | -8.06 | -17.57 | -26.69 | -35.41 | -43.74 | -51.69 | -59.23 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 12.48 | 12.48 | 12.48 | 12.48 | 12.48 | 12.48 | 12.48 |
| Reserves and surplus | -11.63 | -22.12 | -31.53 | -39.97 | -47.53 | -54.28 | -60.28 |
| Term loan outstanding | 21.39 | 17.82 | 14.26 | 10.69 | 7.13 | 3.56 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 22.24 | 8.18 | -4.80 | -16.80 | -27.93 | -38.24 | -47.81 |
| Net fixed assets | 30.30 | 25.76 | 21.89 | 18.61 | 15.82 | 13.44 | 11.43 |
| 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 | -8.06 | -17.57 | -26.69 | -35.41 | -43.74 | -51.69 | -59.23 |
| Total assets | 22.24 | 8.18 | -4.80 | -16.80 | -27.93 | -38.24 | -47.81 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.88 | -0.66 | -0.71 | -0.76 | -0.83 | -0.90 | -1.00 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.82 |
|---|---|
| Lowest DSCR | -1.00 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.35 | 4.55 | 3.86 | 3.28 | 2.79 | 2.37 | 2.02 |
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 | 23.17 | 2.51 | 1.78 | 21.39 |
| 2 | 21.39 | 2.17 | 3.56 | 17.82 |
| 3 | 17.82 | 1.78 | 3.56 | 14.26 |
| 4 | 14.26 | 1.39 | 3.56 | 10.69 |
| 5 | 10.69 | 1.00 | 3.56 | 7.13 |
| 6 | 7.13 | 0.60 | 3.56 | 3.56 |
| 7 | 3.56 | 0.21 | 3.56 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- Pollution control board consent to establish and operate
- Registration as a plastic waste recycler with the state pollution control board (Plastic Waste Management Rules)
- Fire NOC
- Trade licence from the local body
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Plastic Waste Recycling (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Plastic_Waste_Recycling_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 39 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0739_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.