The model unit is based on the versatile dal milling technology developed by Central Food Technology Research Institute (CFTRI), Mysore and the machinery is fabricated under the supervision of the scientists from CFTRI. CFTRI, Mysore besides providing assistance in the establishment of the dal mills also provides need based training programme for successfully running these units.
Plant and Machinery:
The details of the nature and type of plant and machinery, their capacity, power consumption, level of automation varies upon the market needs, nature and type of the end products and the investment capacity of the entrepreneur.
The details of plant and machinery for the model project are as Precleaner-1 No.; Dehuskers-2 Nos.; Grader-2 Nos.; Bucket Elevators-4 Nos.; Aspirators and Blowers-3 Nos.; Control Panels-3 Nos.; Destoner-1 No. and Pedal Mixer -2 Nos. The total cost of plant and machinery has been estimated at Rs. 9.25 Lakh ( inclusive of the cost of electrical motors for driving the machines). The plant and machinery proposed are as per design provided by CFTRI Mysore. All these units are proposed to be arranged in a streamlined layout to give continuity of operation.
Electrical and other items:
The various machines have to be connected to electrical motors of suitable power ratings for supplying power to them. Accordingly AC -3 Phase motors of different power ratings, varying from 2.50 Hp to 7.50 Hp will be required for powering the various unit operations of the dal mill. The total cumulative Hp ratings of all these motors will be in the vicinity of 15.50 Hp. The cost of the electrical motors have been included along with the cost of plant and machinery. However, a cost of Rs. 50,000/- has also been considered for internal wiring and associated electrical work.
Miscellaneous fixed assets:
A cost of Rs. 1.30 Lakh under miscellaneous fixed assets has been considered for meeting the expenses for office furniture, weighing balance/scale, gunny bag sealing machine, office equipment, fixtures, steel ladders and platforms for cleaning of machines and equipment etc.
The total connected load for the aforementioned unit will be in the tune of 15.50 Hp or 11.56 kW. In addition to it power requirement to the tune of 1.00 kW will be required for general lightening. Thus the total power requirement for the model project will to the tune of 12.56 kW. Accordingly a a suitable power connection of 20 KVA is required.
The total water requirement of the unit will be 500 litres per day. Water is mostly required for soaking and for moisture treatment of the grain pulses. Apart from it water is also required for domestic comsumption purpose.
Standby diesel engines, generator sets and other utilities
Suitable standby power arrangement (DG sets of 20 KVA) may be made under the project. Accordingly a cost provision of Rs. 95,000/- has been made.
Provision for fire fighting:
Necessary provision for fire fighting equipment may be made while installing the dal mill. Accordingly a cost provision of Rs. 15,000/- has been made.
Provision for Insurance:
Necessary provision for insurance may be made while installing the dal mill. Accordingly provision for insurance @1% of the original cost of fixed asset has been made.
A 5% contingency provision is made for unforseen expenses.
A minimum of five permanent employees: Two operators, one accountant cum store keeper and two watch and ward person are required for the unit. Besides two skilled and 10 unskilled workers are required under the scheme.
Eligibility of borrowers:
The borrowers can be proprietary and partnership firms, cooperatives, joint stock companies, corporations, APMC boards, growers associations , NGOs, PVOs etc.
The repayment schedule has been calculated considering the tenure of term loan to be 9 years , inclusive of a grace period of 2 years. However, banks are free to decide upon the repayment schedule depending upon the net cash flow statements and availability of adequate coverage to repay the term loan installment.
Interest rates for ultimate borrowers:
Banks are free to decide the rate of interest within the overall RBI guidelines. However, for working out the financial viability and bankability of the model project, we have assumed the rate of interest as 12% p.a.
Interest rate for refinance from NABARD:
As per the circulars issued by NABARD from time to time
Banks may take a decision as per RBI guidelines
Results of financial analysis are as under:
The financial analysis of the investment on the improved dal mill having an installed capacity of 480 MT/ annum has been attempted and is placed from Annexures I to VII. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. For this project, the financial indicators of the investment are as under:
Net Present Value @ 15% DF (NPW) = Rs. 12.37 lakh
Internal Rate of Return (IRR) = 25.04 %
Benefit Cost Ratio (BCR) = 1.03:1
Average Debt Service coverage Ratio (DSCR) = 1.54:1