Bank-ready jute bag unit report under PM Vishwakarma — project cost ₹5–40 Lakh, subsidy, CMA data, DSCR ≥ 1.50 and 5-year projections.
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This page provides a comprehensive, bank-ready project report for a Jute Bag Unit under the PM Vishwakarma scheme (NIC 13941). The scheme offers subsidized loans of up to ₹5 lakh (first tranche) and ₹10 lakh (second tranche) for traditional artisans and craftspeople, including jute bag makers. For a unit with a project cost between ₹5–40 lakh, a detailed report is essential to secure financing and subsidy benefits. The report includes CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) above 1.5, and 5-year financial projections covering production, sales, costs, and profitability. It also outlines the subsidy structure: 5% interest subvention and a capital subsidy of up to ₹1 lakh (toolkit). Whether you are a jute artisan in West Bengal, Bihar, or Odisha, this report helps you present a viable business case to banks (e.g., SBI, Canara Bank) and PM Vishwakarma implementation agencies. It covers raw material sourcing (jute from local mandis), machinery (jute bag sewing machines, cutting tables), working capital, and marketing strategies. Use this template to save time and increase approval chances.
To apply for a PM Vishwakarma Jute Bag Unit loan, you must be an artisan or craftsperson engaged in jute bag making, aged 18+, with no prior default on government loans. The scheme is open to individuals or groups (SHGs, cooperatives) but not to companies or LLPs. You need a valid Aadhaar, a bank account (preferably Jan Dhan or savings), and a skill certificate from a recognized institution (or self-declaration for traditional artisans). The project cost includes capital expenditure (machinery, tools) and working capital (raw jute, thread, labor). For a unit in Kolkata or rural Bengal, typical machinery includes a heavy-duty jute bag sewing machine (₹40,000–60,000), cutting machine (₹30,000), and hand tools. The subsidy covers 5% interest subvention on the loan and a toolkit grant of up to ₹1 lakh (for tools costing up to ₹15,000). Ensure your project report shows a DSCR of at least 1.25 and a payback period within 5 years.
For a Jute Bag Unit with a total project cost of ₹15 lakh (example), the financing structure under PM Vishwakarma is: 20% own contribution (₹3 lakh) and 80% loan (₹12 lakh). The loan is split into two tranches: first tranche up to ₹5 lakh (no collateral required, backed by CGTMSE up to ₹5 lakh) and second tranche up to ₹10 lakh (requires collateral or CGTMSE coverage up to ₹10 lakh). The subsidy includes a 5% interest subvention (reducing effective interest to around 4-5% p.a.) and a toolkit grant of ₹15,000–₹1,00,000 (reimbursed after purchase). For a unit in Bihar, where jute is abundant, the cost breakup: land & building (rented, ₹0), plant & machinery (₹4.5 lakh), working capital (₹8 lakh for raw jute, wages, electricity), and preliminary expenses (₹2.5 lakh). The CMA data should show peak working capital needs during the jute harvesting season (July-October). The 5-year projections must include production capacity (e.g., 500 bags/day), revenue (₹60/bag), and net profit margin of 15-20%.
A complete bank-ready project report for a PM Vishwakarma Jute Bag Unit must include: 1) PM Vishwakarma application form (online via PM Vishwakarma portal or CSC), 2) Aadhaar and PAN card, 3) Proof of address (electricity bill, rent agreement), 4) Caste/category certificate (if SC/ST/OBC), 5) Skill certificate or self-declaration, 6) Quotations for machinery and raw materials, 7) CMA data (current assets, current liabilities, working capital gap), 8) 5-year financial projections (P&L, balance sheet, cash flow), 9) DSCR calculation (minimum 1.25), 10) Repayment schedule (5-7 years), 11) Photographs of existing workspace or proposed location, 12) GST registration (if turnover > ₹40 lakh, else optional). For the subsidy claim, submit invoices for toolkit purchase and interest certificate from the bank. Local banks (e.g., UCO Bank in West Bengal) may ask for a detailed marketing plan showing tie-ups with local traders or e-commerce platforms. Ensure all documents are self-attested.
Every report is formatted to the exact standards required by Indian banks and government departments.
A complete 14-section project report — the same document your bank officer will read. Every table below is real: the repayment schedule, the DSCR, the CMA workings, the balance sheet. Generate yours free, then pay ₹499 for the clean copy.
Project Report
Consumer electronics repair, servicing & spare-parts retail
Vaishali Nagar, Jaipur, Rajasthan
Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur
The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.
The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.
Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.
| Particulars | Basis | Amount (₹) |
|---|---|---|
| Renovation & civil work | 200 sq.ft. additional area, electrical, ESD flooring | 1,20,000 |
| Diagnostic & repair equipment | As per quotations — Annexure IX | 2,40,000 |
| Computers, software & service tools | 2 systems, billing software, tool kits | 80,000 |
| Furniture, air-conditioning & display fixtures | Counter, racks, 1.5 T AC | 60,000 |
| Margin money for working capital | Stock, receivables & operating cash | 5,00,000 |
| Total project cost | 10,00,000 |
A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.
| Source | Amount (₹) | % of project cost |
|---|---|---|
| Promoter's own contribution | 2,00,000 | 20.00% |
| Term loan under MUDRA Tarun | 8,00,000 | 80.00% |
| Subsidy / margin money grant | Nil | — |
| Total | 10,00,000 | 100.00% |
Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.
For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.
| Equipment | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| BGA rework station with preheater | 1 | 95,000 | 95,000 |
| Digital storage oscilloscope with probes | 1 | 45,000 | 45,000 |
| Universal IC programmer | 1 | 35,000 | 35,000 |
| Ultrasonic PCB cleaning unit | 1 | 22,000 | 22,000 |
| Soldering / desoldering stations | 3 | 8,000 | 24,000 |
| Precision tool kits & ESD workbench | 2 | 9,500 | 19,000 |
| Total | 2,40,000 |
Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Service & repair income | 24.00 | 28.32 | 32.57 | 36.80 | 41.22 |
| Sale of spares & accessories | 9.60 | 11.33 | 13.03 | 14.73 | 16.49 |
| Total revenue | 33.60 | 39.65 | 45.60 | 51.53 | 57.71 |
| Cost of spares & materials (45%) | 15.12 | 17.84 | 20.52 | 23.19 | 25.97 |
| Gross profit | 18.48 | 21.81 | 25.08 | 28.34 | 31.74 |
| Salaries & wages | 6.72 | 7.26 | 7.84 | 8.47 | 9.14 |
| Rent | 1.44 | 1.51 | 1.59 | 1.67 | 1.75 |
| Power & fuel | 0.72 | 0.78 | 0.83 | 0.89 | 0.95 |
| Repairs & maintenance | 0.30 | 0.33 | 0.36 | 0.39 | 0.42 |
| Marketing & business promotion | 0.36 | 0.40 | 0.44 | 0.48 | 0.52 |
| Administrative & miscellaneous | 0.60 | 0.66 | 0.72 | 0.78 | 0.84 |
| Insurance | 0.12 | 0.13 | 0.14 | 0.15 | 0.16 |
| Total operating expenses | 10.26 | 11.07 | 11.92 | 12.83 | 13.78 |
| EBITDA | 8.22 | 10.74 | 13.16 | 15.51 | 17.96 |
| Depreciation (WDV, as per IT Act) | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| EBIT | 7.36 | 10.08 | 12.64 | 15.09 | 17.61 |
| Interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Profit before tax | 6.58 | 9.44 | 12.16 | 14.78 | 17.50 |
| Income tax (as applicable) | 0.30 | 0.62 | 0.95 | 1.35 | 1.80 |
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.
| Year | Opening balance | Principal repaid | Interest | Total outgo | Closing balance |
|---|---|---|---|---|---|
| 1 | 8,00,000 | 1,28,404 | 77,937 | 2,06,341 | 6,71,596 |
| 2 | 6,71,596 | 1,42,555 | 63,787 | 2,06,341 | 5,29,041 |
| 3 | 5,29,041 | 1,58,265 | 48,077 | 2,06,341 | 3,70,776 |
| 4 | 3,70,776 | 1,75,706 | 30,635 | 2,06,341 | 1,95,070 |
| 5 | 1,95,070 | 1,95,070 | 11,272 | 2,06,341 | Nil |
| Total | 8,00,000 | 2,31,707 | 10,31,705 |
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Profit after tax | 6.28 | 8.82 | 11.21 | 13.43 | 15.70 |
| Add: depreciation | 0.86 | 0.66 | 0.52 | 0.42 | 0.35 |
| Add: interest on term loan | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Cash available for debt service (A) | 7.92 | 10.12 | 12.21 | 14.16 | 16.16 |
| Principal repayment | 1.28 | 1.43 | 1.58 | 1.76 | 1.95 |
| Interest | 0.78 | 0.64 | 0.48 | 0.31 | 0.11 |
| Total debt service (B) | 2.06 | 2.07 | 2.06 | 2.07 | 2.06 |
| DSCR (A ÷ B) | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 |
Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.
| Particulars | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| LIABILITIES | |||||
| Capital account (net of drawings) | 4.08 | 7.50 | 12.11 | 17.74 | 24.44 |
| Term loan — long-term portion | 5.29 | 3.71 | 1.95 | — | — |
| Term loan — current maturity | 1.43 | 1.58 | 1.76 | 1.95 | — |
| Sundry creditors (30 days) | 1.26 | 1.49 | 1.71 | 1.93 | 2.16 |
| Other current liabilities & provisions | 0.30 | 0.35 | 0.40 | 0.45 | 0.50 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| ASSETS | |||||
| Net fixed assets | 4.14 | 3.48 | 2.96 | 2.54 | 2.19 |
| Stock of spares (45 days) | 1.86 | 2.20 | 2.53 | 2.86 | 3.20 |
| Sundry debtors (10 days) | 0.92 | 1.09 | 1.25 | 1.41 | 1.58 |
| Cash & bank balance | 5.44 | 7.86 | 11.19 | 15.26 | 20.13 |
| Total | 12.36 | 14.63 | 17.93 | 22.07 | 27.10 |
| Sources | Amount | Applications | Amount |
|---|---|---|---|
| Profit after tax | 6.28 | Capital expenditure | 5.00 |
| Depreciation | 0.86 | Increase in stock | 1.86 |
| Increase in creditors & provisions | 1.56 | Increase in debtors | 0.92 |
| Term loan drawn | 8.00 | Repayment of term loan | 1.28 |
| Promoter's capital introduced | 2.00 | Drawings | 4.20 |
| Closing cash & bank | 5.44 | ||
| Total | 18.70 | Total | 18.70 |
Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.
| Particulars | Amount |
|---|---|
| Stock of spares | 1.86 |
| Sundry debtors | 0.92 |
| Cash & bank balance | 5.44 |
| Total current assets (TCA) | 8.22 |
| Sundry creditors | 1.26 |
| Other current liabilities & provisions | 0.30 |
| Current maturity of term loan | 1.43 |
| Other current liabilities (OCL) | 2.99 |
| Working capital gap (TCA − OCL) | 5.23 |
| 25% of TCA — stipulated margin | 2.06 |
| Maximum permissible bank finance (Method II) | 3.18 |
No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.
CMA statements included in the full report
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Bank norm |
|---|---|---|---|---|---|---|
| Current ratio | 2.75 | 3.26 | 3.87 | 4.51 | 9.36 | ≥ 1.25 |
| Debt–equity ratio | 1.65 | 0.71 | 0.31 | 0.11 | Nil | ≤ 3.00 |
| DSCR | 3.84 | 4.89 | 5.93 | 6.84 | 7.84 | ≥ 1.25 |
| Net profit margin | 18.7% | 22.2% | 24.6% | 26.1% | 27.2% | — |
| Interest coverage | 9.4 | 15.8 | 26.3 | 48.7 | 160.1 | ≥ 2.00 |
| Particulars | Amount |
|---|---|
| Fixed costs (salaries, rent, admin, depreciation, interest) | 10.88 |
| Variable costs (materials, power, maintenance) | 16.14 |
| Contribution (revenue − variable costs) | 17.46 |
| P/V ratio | 51.96% |
| Break-even sales | 20.94 |
| Break-even as % of Year-1 revenue | 62.3% |
| Cash break-even as % of Year-1 revenue | 57.4% |
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PM Vishwakarma format + jute bag unit economics combined correctly.
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Project cost ₹5–40 Lakh, NIC 13941.
CMA, DSCR ≥ 1.50, 5-year projections.
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Yes — PM Vishwakarma (artisan loan + toolkit) is commonly used for jute bag unit. The report is formatted to PM Vishwakarma requirements with subsidy/margin money shown.
artisan loan + toolkit — computed automatically in the means-of-finance and subsidy sections.
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Yes, but only if you are an individual artisan or craftsperson. The scheme is for traditional artisans, not for existing businesses that are registered as companies or LLPs. If you have a sole proprietorship, you can apply, provided you have not availed similar subsidy from other schemes like MUDRA or PMEGP in the last 5 years.
The maximum loan is ₹10 lakh in two tranches: first tranche up to ₹5 lakh (without collateral) and second tranche up to ₹10 lakh (with collateral or CGTMSE cover). The total project cost can be up to ₹40 lakh, but the loan component is capped at ₹10 lakh. You need to bring in the remaining amount as own contribution.
Yes, PM Vishwakarma provides a toolkit grant of up to ₹1 lakh, but only for tools costing up to ₹15,000 (the grant is limited to the actual cost). For machinery above ₹15,000, you can claim 5% interest subvention on the loan. The toolkit grant is reimbursed after you submit invoices and photographs of the purchased tools.
CMA (Credit Monitoring Arrangement) data includes current assets (raw jute, work-in-progress, finished goods, receivables, cash) and current liabilities (creditors, bank overdraft). For a jute bag unit, assume raw jute stock for 2 months, finished goods for 15 days, and receivables for 30 days. Calculate working capital gap = current assets - current liabilities. The bank will finance 75% of the gap. Use a CMA format from your bank or download from our site.