Project Report

1. What is a project report?

The project report is a document, which gives an account of the project proposal to ascertain the
prospects of the proposed plan/activity. The project report contains detailed information about:

 Land & building required

 Manufacturing Capacity per annum

 Manufacturing Process

 Machinery & equipment along with their prices and specifications

 Requirements of raw materials

 Power & Water required.

 Manpower needs

 Marketing

 Cost of the project and production.

 Financial analyses & economic viability of the project.

2. How is a Project Report Prepared?

A project report is prepared with the help of prescribed guidelines available with MSMEDI’s,
DIC’s & financial institutions. Information about prices of machinery & equipment, raw material
and other various inputs required for setting up an enterprise need to be collected from the
market.

3. Is there any standard model for preparing the project report?

A model proforma for preparing the project report is available with MSMEDI’s, DIC’s &
financial institutions. Every institution has its own model proforma. However contents of all the
proforma are almost similar.
4. Is a model project report available?

Yes, Model project profiles are available with the MSMEDIs(formerly Small Industries Service
Institute’s) & DIC’s for the guidance of entrepreneurs.. However, these project profiles have to
be recast in accordance with specific needs of the entrepreneurs and the current prices of inputs.

5. Which agency assists in preparation of Project Report?

MSMEDIs, NSIC and State Govt. agencies viz. DICs, SFCs can help you in preparing the
Project Report. You can also prepare the Project Report yourself by collecting detailed
information on various points.

6. What details are required for preparation of Project Report?

Information in detail is required about the technical process, requirements of plant and
machinery, raw materials, manpower requirement, market information and statutory
representations (like pollution control and public safety) etc. The details of power and water
tariff, land/shed/building and selling prices etc. needs to be collected as prevalent in the market.

7. Which agencies can be approached for obtaining information for preparation of the
Project Report?

Entrepreneur can approach MSMEDIs and state Govt. agencies viz. Directorate of Industries,
SFCs, DICs and market channels for getting information.

8. Who can help in selecting production process, equipment etc?

Micro, Small & Medium Enterprises Development Institute’s (formerly Small Industries Service
Institutes), Design and Development Centers like MSME Technology Development Center’s
(formerly PPDC’s) /Tool Room’s, Research and Developmental agencies such as NRDC’s and
Regional Research Laboratories can help you in selecting the right production process, suitable
equipment’s etc.

Differences between Conducting Feasibility Study and Writing a Business Plan

1. A feasibility study is carried out with the aim of finding out the workability and profitability
of a business venture. Before anything is invested in a new business venture, a feasibility study is
carried out to know if the business venture is worth the time, effort and resources. On the other
hand, a business plan is developed only after it has been established that a business opportunity
exist and the venture is about to commence. This simply means that a business plan is prepared
after a feasibility study has been conducted.

2. A feasibility report is filled with calculations, analysis and estimated projections of a business
opportunity. While a business plan is made up of mostly tactics and strategies to be implemented
in other to start and grow the business.

3. A feasibility study is all about business idea viability while a business plan deals with
business growth plan and sustainability.

4. A feasibility study report reveals the profit potential of a business idea or opportunity to the
entrepreneur, while a business plan helps the entrepreneur raise the needed startup capital from
investors.

I hope this few words have been able to point out the key differences between feasibility study
and business plan. I feel it’s also worthwhile to know that a feasibility report can readily be
converted to a business plan. To achieve this, all you need to do is incorporate your business
strategies and tactics into the feasibility report; and you are good to go.