PROJECT REPORT

OF

SOLAR & WIND ENERGY IMPLIMENTS

Prepared by:

THE NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND SMALL

BUSINESS DEVELOPMENT (NIESBUD)
Head Office : A- 23, sector 62 , Noida -201309 (U.P)
Telefax: 0120-4017039 , www.niesbud.nic.in
Regional Office: NSTI Campus, Green Park Colony, Niranjanpur
PO: Majra, Dehradun (Uttarakhand)-248171
Telefax: 0120-4017039
www.niesbud.nic.in
 PROJECT HIGHLIGHTS

NAME OF PROPRIETOR : XXX

ADDRESS OF PROPRIETOR : XXX

CONSTITUTION : PROPRIETORSHIP

CATEGORY OF UNIT : SMALL SCALE

FATHER/HUSBAND NAME : XXX

DATE OF BIRTH : XXX
CATEGORY OF THE PROPRIETOR : XXX
QUALIFICATION : XXX
LOCATION OF UNIT : XXX
ROPOSED PROJECT : SOLAR & WIND ENERGY IMPLIMENTS
NAME OF SCHEME : PRIME MINISTER’S EMPLOYMENT
GENERATION PROGRAMME
UNIT (OWN/RENTED) : OWNED/RENTED

(A) TOTAL COST OF PROJECT : Rs.25,00,000.00

(1) Fixed Capital : Rs.17,50,000.00
(2) Working Capital Limit : Rs. 7,50,000.00

(B) MEANS OF FINANCE : Rs. 25,00,000.00

(1) Term Loan for Machinery : Rs. 16,25,000.00
(2) Working Capital Limit : Rs. 7,50,000.00
(3) Promoter’s Contribution : Rs. 1, 25,000.00
SUBSIDY UNDER PMEGP : Rs. 8,75,000.00
EMPLOYMENT POTENTIAL : 18 PERSON
NORMAL WORKING HOUR : 08 HOUR
INTRODUCTION: -

Hybrid solar-wind applications are implemented in the field, where all-year energy is
to be consumed without any chance for an interrupt. It is possible to have any
combination of energy resources to supply the energy demand in the hybrid
systems, such as solar and wind. This project is similar with solar power panel and
wind turbine power. Differently, it is only an add-on in the system. Photovoltaic solar
panels and small wind turbines depend on climate and weather conditions.
Therefore, neither solar nor wind power is sufficient alone. A number of renewable
energy expert claims to have a satisfactory hybrid energy resource if both wind and
solar power are integrated within a unique body. In the summer time, when sun
beams are strong enough, wind velocity is relatively small. In the winter time, when
sunny days are relatively shorter, wind velocity is high on the contrast. Efficiency of
these renewable systems show also differences through the year. In other words, it
is needed to support these two systems with each other to sustain the continuity of
the energy production in the system.

PROMOTER & MANAGEMENT: -

The promoter is reported to have good financial standing presently. The Promoters is
actively associated with the implementation of the project. Promoter is over all in
charge of the working of the unit.
MARKET AND DEMAND: -
There are large numbers of units, manufacturing solar & wind energy products in
Small Scale Sector in the country. Since domestic apparatus/Gadgets,
equipment/appliances and machineries are operated successfully by Solar energy &
wind, so, the market potential is tremendously high now and is also expected in the
future. As there are few MSMEs available in this sector so, the Solar & wind hybrid
products shall create a tremendous market place in and around the state.

MAJOR BENEFITS OF THE PROJECT: -

I. Easy availability of material.
II. Job opportunity to local people.

FURNITURE, FIXTURES ETC.: -

The total estimated cost of required Furniture & Fixtures include Electricity Fittings
would be Rs.- 100,000/-.
PREOPERATIVE EXPENSES: -
The total estimated cost of required Preoperative Expenses would be Rs.-2 5,000/-.

PLANT, MACHINERY AND EQUIPMENTS: -

Plant, Machinery, Tools, Shed and other equipment’s required by the proposed unit
are available indigenously. The various items required for installation of Rs.
13,75,000/- details as per quotation attached herewith.

QUALITY CONTROL: -
The concern proposed to set up above unit for which provision testing equipment
have been proposed in the project report.
TECHNICAL KNOW- HOW: -
The process for sale of products is simple and no sophisticated technology is involved.
There is no requirement of any type of technical knowhow.

TRANSPORTATION: -
The proposed location is connected by road and near to the city. Thus the unit is not
likely to face difficulty on account of transportation.

UTILITIES: -

a) Power:
The total connected load for the smooth operations of the unit has been estimated
and Electricity connection will be obtained as per required load including lighting
load if required.

b) Water:
The water will be available. Necessary provision for storage of water and water
supply has been made in the project cost.

MANPOWER: -
The unit would require total manpower of 18 person of different category. The details
of salary/wages proposed to be paid together with annual Salary/wages bill is given in
separate annexure.
DEPRECIATION: -
The depreciation on fixed assets has been computed in annexure of this project report
in accordance with the admissibility of the same under the Income Tax Act, 1961.
TRAINING: -
Applicant has to complete two week EDP training specially designed for the purpose,
which will be organized by KVIC/KVIB/DIC or the institution organized by or under the
administration control of Minister of MSME or any other training centre of repute
before disbursement of loan by the bank. After the successfully completion of EDP
training arranged by the KVIC/KVIB/DIC, the beneficiary will deposit with the bank
finance to the beneficiary.
CAPITAL SUBSIDY UNDER PMEGP: -
Unit is eligible to get capital subsidy under Prime Minister Employment Generation
Programme 35% of the total cost of the project (expect cost of land). Total subsidy to
be received Rs. 8,75,000/-
TERM LOAN AND WORKING CAPITAL LOAN UNDER PRADHAN MANTRI ROJGAR
YOJNA (PMEGP)
The unit proposed to have Term loan UNDER PMEGP of Rs. 16,25,000/- & working
capital limit of Rs. 7,00,000/- Own contribution of unit will be Rs. 1,25,000/-, which is
five percent of total cost of project. The total project cost will be Rs.25,00,000/-.

LOAN REPAYMENT SCHDULE

TERM LOAN UNDER PMEGP: -

Total Term Loan : Rs. 16,25,000/-

Total Duration : 5 Years
0From the next year
Each yearly installment : Rs. 3,25,000/-

Total installments : Rs.3,25,000*5 = Rs. 16,25,000/-

Total Rs. 16,25,000/--

INTEREST COMPUTATION
Interest computation is given in Annexure 6.

PROJECTED INCOME/PROFITABILITY:

The projected Income & profitability statement has been shown in the attached profit
& loss account. Projected Balance sheet for the next five years are also enclosed as
here for the reference.

ECONOMIC VIABILITY: -

Based on the projections attached it is observed that sufficient revenue shall be

generated through operations served & it indicates the economic viability of the
proposal. Hence the project can be considered as economically favorable.

CONCLUSION: -

Based on the grounds discussed aforesaid it is concluded that project is economically

& feasibly viable and should be considered favorably.
GENERAL NOTE: -
All Thing Depicted Are Proposed Based On the Information Provided by The Applicant
We Shall Not Be Responsible for Any Financial MIS- Statements or Non Proper Use Of
Funds By The Borrower.
 SOLAR AND WIND ENERGY SYSTEM
Address : XXX
FINANCIAL ASPECTS OF THE PROJECT

A. FIXED CAPITAL
I-Plant & Machineries:

S.No Particulars No. Rate (Rs.) Amount(Rs.)

1 Semi Automatic Coil Winding Machine 2 95000 190000
2 Tool Kit 4 20000 80000
3 Drilling machine & Cutting machine 4 each 8 20000 160000
4 Bending Machine, Spray Painting (Each 2 nos) 4 20000 80000
5 Welding Machine 2 20000 40000
6 Grinder 4 10000 40000
7 Parameter measuring tools 2 50000 100000
8 Oscilloscope (50 - MHz) 2 25000 50000
9 LCR-Q Meter 2 15000 30000
11 4-1/2 Digit or Digital Multimeter 4 8500 34000
12 Temperature control soldering station 8 2000 16000
13 15 KVC silent Diesal Generator 1 225000 225000
14 Clamp Merter 2 10000 20000
15 Meter Mill Ampere 2 5000 10000
16 Bench Machine with Table (Working Table) 4 25000 100000
17 Distilled water Plant for Batteries 1 250000 250000
18 Temprature and Humi dity Contraol Chamber 1 100000 100000
19 PCB Design Tools & Software 1 100000 100000
TOTAL 1625000

II-Other Fixed Assets:

S.No Particula rs Amount (Rs.)

1 Furniture for unit like racks, chair etc. 90000
2 Other equipments like fan, electrification etc. 10000
TOTAL 100000

III-Preliminary & Pre-operati ve expenses:

S.No Particula rs Amount (Rs.)

1 Transportation of Machinery / Equipments 20000
2 Misc. Expenses ( Electric fitting , Board etc) 5000
TOT AL 25000

TOTAL FI XED CAPITAL

S.No Particula rs Amount (Rs.)

1 Machinery and Equi pments 1625000
2 Other Fixed Assets 100000
3 Preliminary and Pre Operati ve Expenses 25000
TOT AL 1750000
 B. WORKING CAPITAL
I- Raw Material (Per Month):

S.No Particulars Qty. Rate (Rs.) Amount (Rs.)

1 Solar panels
2 Small wind turbine generators 450000
3 Other Consumables
TOTAL 450000

II- Man power (Per Month):

S.No Particulars Nos Rate Amount (Rs.)

1 Administrative Staff cum Accountant 2 15000 30000
2 Skilled Workers 5 10000 50000
3 Unskilled Workers 11 8000 88000
TOTAL 168000

III- Utilities (Per Month):

S.No Particulars Amount (Rs.)

1 Electricity 5000
2 Phone bill 6000
3 Rent 30000
4 Transportation 50000
TOTAL 91000

IV- Misc. or other expenses: (Per Month)

S.No Particulars Amount (Rs.)

1 Repair & Renewal 21000
2 Other 20000
TOTAL 41000
 TOTAL WORKING CAPITAL (Per Month)

S.No Particulars Amount (Rs.)

1 Raw Material 450000
2 Manpower 168000
3 Utilities 91000
4 Misc. expenses 41000
TOTAL 750000

C- ANNUAL S AL ES RE ALIS ATI O N

S.No Particulars Qty. Rate Amount (Rs.)

1 Wind Power plant 60 85000 5100000
2 Hybrid Solar Charge Controller 100 3000 300000
3 Solar Street LED Lights 300 1200 360000
4 Solar Mobile Charger 300 200 60000
5 Solar Lantern 180 700 126000
6 Hybrid power Plant 36 150000 5400000
7 Wind Mobile charger 200 300 60000
Total 11406000

D-B RE AK E VE N POI NT
(BAS E D O N FI RST YE AR O F O PE RATI O N)

S.No FIXED COST Amount (Rs.)

1 Interest on loan 173435
2 Depreciation 254000
3 Man power expenses (30% ) 604800
4 Operating expenses (30%) 20952 00
Total 31274 35
BEP = Fixed Cost * 100 312743490 72.51
Fixed Cost + Net P rofit 43133 81
 SOLAR AND WIND ENERGY SYSTEM
XXX
Annexture-1
PROJECTED BALANCE SHEET
(Rs. In '000)
Operating Years
PAR TICU L AR S
1st 2nd 3rd 4th 5th
A-S O URC E S:-

I ) CAPITAL / OWN CONTRI BUTION 125 1311 2632 4065 5606

ADD:- P ROFIT 1186 1321 1433 1541 1646
TOTAL 1311 2632 4065 5606 7252

II) LOAN FUNDS

SECURED LOANS
Term Loan from Bank 1300 975 650 325 0
C/C Limit from Bank 750 750 750 750 750

T O T A L (I+II) 3361 4357 5465 6681 8002

B- APPLI CATI ON:-

I) FIXED ASS ETS

GROSS BLOCK 1725 1725 1725 1725 1725
LESS: ACC.DEPRICIA TION 254 470 654 811 945
T OTA L 1471 1255 1071 914 780

II) CURR EN T A S SE T S L O AN S & ADV ANC E S

PRELIMINE RY E XPENSES 25 25 25 25 25
INVE NTORIES 450 473 495 518 540
SUNDERY RECE IVABLES 951 998 1046 1093 1141
CASH & BANK BALANCES 909 2047 3359 4750 6223
LOANS & ADVANCES 500 600 600 600 600
T OTA L 2835 4142 5524 6986 8528

III) CURRENT LI ABILITI ES & PROVISIONS

SUNDERY CRE DITOR 450 473 495 518 540
PROV ISION FOR TA XA TAION 147 202 253 302 350
E XPENSES PAYABLE 348 365 382 400 417
T OTA L 945 1040 1130 1219 1307

IV) NET CUREENT ASS ETS (II-III) 1890 3102 4394 5767 7222

T OTA L 3361 4357 5465 6681 8002

Margin Money under PMEGP 875 875 875 - -

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 SOLAR AND WIND ENERGY SYSTEM
Annexture-2
Address : XXX
PROJECTED COST OF PRODCUTION AND PROFITABILITY
(Rs. In '000)
Operating Years
Particulars
1st 2nd 3rd 4th 5th
Capacity Utilization 50% 55% 60% 65% 70%

A- INCOMES :

GROSS RECEIPTS 11406 11976 12547 13117 13687

CLSOING STOCK 450 473 495 518 540

TO TA L (A ) 11856 12449 13042 13634 14227

B- EXPENSES

OPENING STCOK 0 450 473 495 518

PURCHASES AND CONSUMPTION 5850 5670 5940 6210 6480

SAL ARY & WAGES 2016 2117 2218 2318 2419

UTILITIES EXPENSES 1092 1147 1201 1256 1310

Total (B) 8958 9383 9831 10279 10727

C- GROSS PROFIT ( A-B ) 2898 3065 3210 3355 3500

AD MINISTR ATIVE COST 492 517 541 566 590

SELLING & DISTRIBUTION EXPENSES 570 599 627 656 684

DEPRICIATION 254 216 184 157 134

FINANCIAL CHARGES
Interest on Term Loan @11.75% 173 135 97 59 21
Interest on CC Limit @10% 75 75 75 75 75

D-TOTAL 1565 1542 1525 1513 1504

E- PROFIT BEFORE TAX ( C - D ) 1333 1524 1686 1843 1996

F- PROVISION FOR TAXATION 147 202 253 302 350

G- NET PROFIT AFTER TAX 1186 1321 1433 1541 1646

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 SOLAR AND WIND ENERGY SYSTEM
Address : XXX
Annexture-3
PROJECTED CASH FLOW STATEMENT
(Rs. In '000)
Operating Years
PARTICULA RS
1st 2nd 3rd 4th 5th
A-SOURCE OF FUND

1. Increase in Capital 125 - - - -

2. Increase in Term Loan 1625 - - - -
3. Increase in C/C Limit 750 - - - -
4. Profit / (Loss) 1186 1321 1433 1541 1646
5. Depreciation added back 254 216 184 157 134
6. Increase in Creditors 945 95 90 89 88

TOTAL ( A ) 4885 1632 1707 1787 1868

B-DISPOSAL OF FUND

I) FIXED ASSETS PURCHASED

1. Furniture & Fixtures 100 - - - -
2. Plant & Machinery 1625 - - - -

II) CURRENT ASS ET S

3. Increase in Stock 450 23 23 22 23
4. Increase in Debtors 951 48 48 48 48
5. Increase in Preliminary Exp. 25
6. Increase in Loans & Advances 500 100 - - -

III) O THERS
7. Payment of Term Loan 325 325 325 325 325
8. Decrease in Creditors 0

TOTAL ( B ) 3976 495 395 395 395

Opening Cash & Bank Balance 0 909 2047 3359 4750

Surplus/(Deficit) ( A - B ) 909 1137 1312 1392 1473
Closing Cash & Bank Balance 909 2047 3359 4750 6223

Note :-Above statement prepared & compiled by us as per the information provided by proprietor
 SOLAR AND WIND ENERGY SYSTEM
Address : XXX
Annexture-4
COMPUTATION OF DEPRECIATION

Depreciation under WDV Method: (Rs. in '000')

Furniture & Plant &
Particulars Total
Fixture Machinery
Rate as per I.Tax Act 10% 15%
Value of Assets at beginning 100 1625 1725
1st year Dep. 10 244 254
Balance at the end of1st year 90 1381 1471
2nd year Dep. 9 207 216
Balance at the end of2nd year 81 1174 1255
3rd year Dep. 8 176 184
balance at the end of 3rd year 73 998 1071
4th year Dep. 7 150 157
balance at the end of 4th year 66 848 914
5th year Dep. 7 127 134
 SOLAR AND WIND ENERGY SYST EM
Address: XXX

Annexture-5
PROJECT ED FINANCIAL RATIOS
(Rs. In '000)
O perating Y ears
PARTICULARS
1st 2nd 3rd 4th 5th

1. CURRENT RATIO
CURRENT ASSETS 2835 4142 5524 6986 8528
CURRENT LIABILITIES 1695 1790 1880 1969 2057

= 1.67 2.31 2.94 3.55 4.15

TIME S TIME S TIME S TIME S TIME S

GROSS PROFIT 2898 3065 3210 3355 3500

2. GROSS PROFIT RATIO
SALES 11406 11976 12547 13117 13687

= 25.41 % 25.60 % 2 5 .59 % 25.58 % 25.57%

NET PROFIT AFTER TA X 1186 1321 1433 1541 1646

3. NET PROFIT RATIO
SALES 11406 11976 12547 13117 13687

= 10.40 % 11.03 % 11.42 % 11.75 % 12.03%

PAT+DEP.+INTT. ON TERM LOAN 1613 1673 1714 1757 1801

4. DSCR A VER A GE
INTEREST+LOAN INSTAL MEN T 498 460 422 384 178

= 3.24 3.63 4.06 4.58 10.14 5.13

TIME S TIME S TIME S TIME S TIME S TIME S

PAT+DEP.+INTT. 1688 1748 1789 1832 1876

5. INTT. COVERAGE R ATIO
INTEREST 248 210 172 134 96

= 6.80 8.31 10.40 13.68 19.60

TIME S TIME S TIME S TIME S TIME S

6. DEBT EQUITY R ATIO

TO TAL TERM LIABILITY 1300 975 650 325 0
TO TAL NET WORTH 1311 2632 4065 5606 7252

= 0.99 0.37 0.16 0.06 0.00

TIME S TIME S TIME S TIME S TIME S

7. ST A B I LI T Y/ G EA R I N G R A TI O
TO TAL OUTSIDE LIABILITY 2050 1725 1400 1075 750
TO TAL NET WORTH 1311 2632 4065 5606 7252

= 1.56 0.66 0.34 0.19 0.10

TIME S TIME S TIME S TIME S TIME S
 SOLAR AND WIND ENERGY SYSTEM
Address : XXX
Loan Amount Rs. 1625000 Annexture-6
Rate of Interest 11.75%
Tenure 5 Years (Rs. In '000)
Sl.No. Intalment Interst Principal Balance Loan

1st Year 498 173 325 1300

2nd Year 460 135 325 975

3rd Year 422 97 325 650

4th Year 384 59 325 325

5th Year 346 21 325 0

 DISCLAIMER

This project report will give an idea and guidance to budding and existing
entrepreneurs on how to prepare the project Report. They will come to know about
the essential elements of project report which must be kept in mind while formulating
business plan. Every earnest-effort has been made in collecting the data and
information available on the subject from different offline and online sources. This
report (including any enclosures and attachments) has been prepared solely for the
purpose for which it is provided.

NIESBUD suggest entrepreneurs to survey the market properly to find the actual
cost of fixed assets and working capital. The actual cost of the project or industry will
vary according to different elements like location, local regulation, financial
requirements of industry, capacity, type of industry, cost of resources and other
direct and indirect cost related to the project.

NIESBUD hereby disclaims any and all liability to any party for any direct, indirect,
implied, punitive, special, incidental or other consequential damages arising directly
or indirectly from any use of the Project Report Content which is provided “as is” and
“as available” basis without any warranties of any kind.

In no event shall NIESBUD be liable for any damages whatsoever resulting from the
use or inability to use the project report content.