Starting a candle manufacturing unit under the Prime Minister’s Employment Generation Programme (PMEGP) is a viable business opportunity for entrepreneurs in India. With NIC code 32990 covering miscellaneous manufacturing, candle making requires moderate investment and offers steady demand from households, religious institutions, hotels, and event organizers. A bank-ready project report is essential for loan approval under PMEGP, which provides a subsidy of 25-35% (up to ₹35 lakh) for projects costing ₹1–15 lakh. The report must include detailed CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) analysis, and 5-year financial projections covering production, sales, expenses, and profitability. It should also justify the project’s viability, raw material sourcing, marketing plan, and working capital requirements. This page provides a comprehensive guide to preparing a PMEGP-compliant project report for a candle manufacturing unit, including format, eligibility, subsidy calculation, and key financial metrics. Whether you are an entrepreneur in Delhi, Mumbai, or a tier-2 city, a well-structured report increases your chances of securing the loan and subsidy swiftly.
Under PMEGP, any individual above 18 years with at least 8th standard education (relaxable for certain categories) can apply. For a candle manufacturing unit, the project cost should be between ₹1 lakh and ₹15 lakh. The borrower must contribute 5-10% of the project cost as margin money (5% for SC/ST/OBC/women/physically handicapped, 10% for others). The remaining amount is financed by the bank, with subsidy from KVIC. The unit must be a new project (existing units not eligible). Location can be rural or urban. The applicant should not have availed any other government subsidy for the same project. A project report must be prepared by a qualified professional or using a standard format approved by the bank. The report should include details of raw materials (paraffin wax, stearic acid, wicks, molds, dyes, fragrances), machinery (melting tanks, molding machines, cooling chambers, packing equipment), and manpower requirements.
A typical candle manufacturing unit with a project cost of ₹5 lakh can be broken down as: machinery & equipment ₹1.5 lakh (melting tank, mold sets, wick cutter, packaging), working capital ₹2.5 lakh (raw materials for 2 months: wax, wicks, dyes, boxes), preliminary expenses ₹0.5 lakh (licenses, registrations, project report), and margin money ₹0.5 lakh (10% of project cost). The bank loan component is ₹4.5 lakh, with subsidy of 25% (₹1.125 lakh) for general category or 35% (₹1.575 lakh) for special categories. The subsidy is released in two installments: first after 50% loan disbursement, second after unit becomes operational. The loan repayment period is 3-7 years with a moratorium of 6-12 months. Interest rates are as per bank norms (usually MCLR + spread, around 9-12% p.a.). Ensure the project report shows positive DSCR (minimum 1.25) and adequate cash flow to service the loan.
1. Executive Summary: Business name, location, product (candles: pillar, tea lights, floating, scented), capacity (e.g., 500 kg per month), project cost, margin money, loan amount, subsidy. 2. Introduction: Market demand, target customers (local shops, temples, wholesale). 3. Promoter Details: Bio, experience, educational qualification. 4. Project Details: Land (owned/rented 500 sq ft), machinery list with costs, raw material suppliers, production process (melting → molding → cooling → wick insertion → packing). 5. Financial Projections: 5-year income statement, balance sheet, cash flow. Key assumptions: capacity utilization 60% in Y1, 80% Y2, 90% Y3 onward; selling price ₹100/kg; raw material cost ₹60/kg; wages ₹30,000/month; electricity ₹5,000/month. 6. CMA Data: Current ratio, debt-equity ratio, DSCR (Year 1: 1.20, Year 2: 1.40, Year 3: 1.60). 7. Break-even Analysis: Break-even point at 45% capacity. 8. Documents: Aadhaar, PAN, education certificate, project report, quotations for machinery, lease deed, bank statements.
Every report is formatted to the exact standards required by Indian banks and government departments.
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
Our AI drafts the full report with financials, projections, and CMA data in under 60 seconds.
Export PDF on the free plan (branded). Upgrade for clean exports plus Word (.docx) + Excel (.xlsx). Submit to bank or DIC office.
PMEGP format + candle manufacturing economics combined correctly.
Subsidy/margin money for PMEGP auto-computed.
Project cost ₹1–15 Lakh, NIC 32990.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMEGP (15–35% margin-money subsidy) is commonly used for candle manufacturing. The report is formatted to PMEGP requirements with subsidy/margin money shown.
15–35% margin-money subsidy — computed automatically in the means-of-finance and subsidy sections.
Register free, pick the scheme & loan amount, and the AI drafts the full bank-ready report (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.
For general category, subsidy is 25% of the project cost (up to ₹35 lakh). For SC/ST/OBC/women/physically handicapped/ex-servicemen/NER, subsidy is 35%. The subsidy is capped at ₹35 lakh for manufacturing projects. For a project cost of ₹5 lakh, subsidy would be ₹1.125 lakh (general) or ₹1.575 lakh (special).
Yes, rented premises are acceptable. You need to provide a rental agreement of at least 5 years and a no-objection certificate from the landlord. The project report should mention the rent expense (typically ₹5,000-10,000 per month) and include it in the financial projections.
Key documents: Aadhaar card, PAN card, educational qualification certificate (minimum 8th pass), caste certificate (if applicable), land documents (sale deed or rental agreement), quotations for machinery and raw materials, bank statements (last 6 months), and a detailed project report with CMA data. For partnership firms, partnership deed and registration are needed.
After submitting the project report to the bank, approval typically takes 30-60 days. The district KVIC office verifies the application. Once sanctioned, loan disbursement happens in phases – first installment for machinery and initial working capital. The entire process from application to disbursement can take 2-4 months.