DPR and CMA
What Is a DPR and Why Do Banks Require It?
The Detailed Project Report is the one document everyone in the project reads. What goes into a good one.
A Detailed Project Report describes the project: who is doing it, what will be made, where, with what plant, at what cost, financed how, implemented when, and with what financial results. Banks appraise term loans from it, allotment agencies score land applications on it, and incentive applications draw on it.
What a bank looks for
The credit officer reads the DPR to answer the appraisal note's questions: are the promoters capable, is the project cost reasonable, is the means of finance credible, are the projections achievable, and will the cash flows service the debt with a margin. The sections that matter are the project cost schedule, the means of finance, the assumptions and the projected statements with their ratios.
Internal consistency
Depreciation should follow the asset schedule in the project cost, interest should follow the loan schedule in the means of finance, working capital margin should appear in the means of finance, and capacity utilisation should match the manpower, power and raw material assumptions. A DPR that fails any of these invites a query that undermines the rest.
Beyond the bank
A DPR for DIC or CSIDC land allotment is scored on investment, employment and implementation schedule and has to follow the agency's format. A DPR supporting an incentive application has to use the policy's definitions of eligible investment. Writing one document that serves all three readers, from one set of assumptions, is the discipline.
What it is not
A DPR is not an industry essay with a page of numbers at the end. Lenders have read the industry overview before. They have not read your numbers, and those are what they are appraising.
Official references
- Chhattisgarh State Industrial Development Corporation (csidc.in)
- Department of Commerce and Industries, Government of Chhattisgarh (industries.cg.gov.in)
Official portals and notifications are the authority on current conditions. Links are provided for reference and may change.
Planning a project in Chhattisgarh?
Start with a structured review of the investment, the financing, the incentives and the approvals.