What is a Detailed Project Report?

1. What is a Detailed Project Report? Once, project ideation takes shape, an elaborate feasibility study of the project becomes essential. Basis of this study, a project owner determines whether the idea is feasible and then plans to attract investment and formulate an investment proposal. To establish that the project is worthy of investment, preparation of a Detailed Project Report or DPR becomes necessary. Insights drawn from a DPR enables an investor to logically decide whether to invest or refrain from investing in the project. A DPR should contain a clear layout of project plans, showcasing the forecasted future of the project after implementation. Experts from relevant fields are pooled in to conduct studies on the economic, political, technical, and ecological viability of the project and entail the potential risks along with the risk mitigation measures. A prospective investor after scrutinizing the details in the DPR, must feel convinced and be able to assume the return on investment if pumped in. A Detailed Project Report (DPR) must comprise of the following elements in order: 1. Company background and experience of project owners: This should be an introduction to the current operational business and its successful products and services, stability, position in the market, history of its revenue, etc. All this should be backed by the documented experiences and successes of the management members. 2. Detailed information about the proposed project:  Product details: This section must provide information of what the proposed product is about, what is the use of the product, who are the potential buyers, who are the major competitors if any.  Technical Knowhow: Here, one must include what is the design of the product, what model of production will be followed, what is the calculated capacity of production, how will the product be used.  Production property, plant, and machinery: This section should include specifications of the identified location where the plant will be established, what machineries will be used, who are its suppliers, what is the calculated capacity of production, how is the accessibility of resources like transportation, raw materials, electricity, water supply, etc.  Manpower availability: Basis the expected production, various teams with assigned goals and objectives need to be created and the number of manpower required in each of these teams need to be ascertained including management teams and task-force.

2.  Waste Management: In this section, the project owner must detail the production wastes, grade them as per hazards it could cause to the ecosystem, what is the expected quantity of waste, what is the plan for its disposal and recycling. 3. Implementation schedule and timelines: A detailed project report must enlist the estimated time required to complete the project and define deadlines for each of the tasks that would be achieved in phases. 4. Project cost: This section should elaborate on all the costs involved as per important head of accounts such as production property cost, utility cost, machinery cost, pre-operative expenditure, contingency cost, interest and fees, buffer capital, etc. 5. Means of Finance 6. Working Capital: DPR should show the calculation of the net current assets 7. Sales and Marketing modes: This section should illustrate the marketing plan to be adopted to generate substantial revenue. 8. Profitability projection: This is the dominant section of a Detailed Project Report that elaborates on the cost’s vs revenue, projected Profit and Loss statements, Balance sheets, cash flow statements for a stipulated timescale using key indicators like Debt Service Coverage ratio, Break-even analysis, Net present Value, etc. 9. Mode of debt repayment and collaterals that can be offered to be withheld. 10. Permissions and approvals: This section evaluates the permissions and necessary approvals need to be sought from Govt. or local bodies. 11. Market Analysis: This final section of a DPR justifies why should this project be undertaken basis demand, supply, cost, and revenue analysis. Original Source: https://bit.ly/35lNeW6