Detailed Project Report
RO Drinking Water Supply Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹10.88 L
- Term loan from bank
- ₹7.07 L
- Promoter’s contribution
- ₹1.09 L
- Subsidy
- ₹2.72 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.87 L
- Average DSCR
- -2.24
- 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
Purify borewell water by RO and sell it in 20-litre cans and through a water ATM.
| Main product or service | RO Drinking Water Supply Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Shops and offices
- Events and small eateries
- Daily home and office delivery
- Water ATM at a busy spot
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| RO unit | 1 | 3,36,286 | 3,36,286 |
| Chiller | 1 | 1,00,000 | 1,00,000 |
| Delivery vehicle | 1 | 4,00,000 | 4,00,000 |
| Cans (campers) (× 1 lot) | 1 | 1,50,000 | 1,50,000 |
| Borewell | 1 | 50,000 | 50,000 |
| Total | 10,36,286 |
Pre-filled from: PMEGP sample project report — Water Purifier Unit (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Borewell water — water cost ₹0.26 L in year 1
- Treatment chemicals (alum, lime, chlorine) and RO consumables — raw material ₹0.78 L in year 1
- Franchise fee and tax per litre — ₹0.087 a litre on can water and ₹0.067 a litre on ATM water
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 10.36 |
| Contingency | 0.52 |
| Total fixed capital | 10.88 |
| Working capital margin | 0.00 |
| Total project cost | 10.88 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.09 | 10.0 |
| Subsidy | 2.72 | 25.0 |
| Term loan from bank | 7.07 | 65.0 |
| Total | 10.88 | 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 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 | 0.22 |
| Insurance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total cost of operations | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 | 3.15 |
| Operating profit (EBITDA) | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 | -3.15 |
| Depreciation | 1.63 | 1.39 | 1.18 | 1.00 | 0.85 | 0.72 | 0.62 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.77 | 0.66 | 0.54 | 0.42 | 0.30 | 0.18 | 0.06 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -5.55 | -5.20 | -4.87 | -4.58 | -4.31 | -4.06 | -3.83 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -5.55 | -5.20 | -4.87 | -4.58 | -4.31 | -4.06 | -3.83 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -5.55 | -5.20 | -4.87 | -4.58 | -4.31 | -4.06 | -3.83 |
| Depreciation | 1.63 | 1.39 | 1.18 | 1.00 | 0.85 | 0.72 | 0.62 |
| Cash accruals (PAT + depreciation) | -3.92 | -3.82 | -3.70 | -3.58 | -3.46 | -3.34 | -3.22 |
| Term loan repaid | 0.54 | 1.09 | 1.09 | 1.09 | 1.09 | 1.09 | 1.09 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.46 | -4.90 | -4.78 | -4.66 | -4.54 | -4.42 | -4.30 |
| Cash and bank | -4.46 | -9.37 | -14.15 | -18.81 | -23.36 | -27.78 | -32.09 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 |
| Reserves and surplus | -5.55 | -10.75 | -15.63 | -20.21 | -24.51 | -28.57 | -32.41 |
| Term loan outstanding | 6.53 | 5.44 | 4.35 | 3.26 | 2.18 | 1.09 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 4.79 | -1.50 | -7.47 | -13.13 | -18.53 | -23.68 | -28.60 |
| Net fixed assets | 9.25 | 7.86 | 6.68 | 5.68 | 4.83 | 4.10 | 3.49 |
| 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 | -4.46 | -9.37 | -14.15 | -18.81 | -23.36 | -27.78 | -32.09 |
| Total assets | 4.79 | -1.50 | -7.47 | -13.13 | -18.53 | -23.68 | -28.60 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.41 | -1.80 | -1.93 | -2.08 | -2.26 | -2.48 | -2.73 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.24 |
|---|---|
| Lowest DSCR | -2.73 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.63 | 1.39 | 1.18 | 1.00 | 0.85 | 0.72 | 0.62 |
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 | 7.07 | 0.77 | 0.54 | 6.53 |
| 2 | 6.53 | 0.66 | 1.09 | 5.44 |
| 3 | 5.44 | 0.54 | 1.09 | 4.35 |
| 4 | 4.35 | 0.42 | 1.09 | 3.26 |
| 5 | 3.26 | 0.30 | 1.09 | 2.18 |
| 6 | 2.18 | 0.18 | 1.09 | 1.09 |
| 7 | 1.09 | 0.06 | 1.09 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- FSSAI licence
- BIS certification (IS 14543) if you sell sealed packaged drinking water
- Groundwater/borewell permission where your state requires it
- Shop/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)
19 Sources
- PMEGP sample project report — Water Purifier Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Water_Purifier_Unit_%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.