A Detailed Project Report is the promoter’s document; a TEV study is the bank’s independent check of it. A well-prepared DPR shortens the TEV and the sanction by weeks.

What should a bankable DPR contain?

  1. Promoter and company background, group structure and track record
  2. Market and demand assessment with sources
  3. Technical chapter: site, process/technology, capacity, utilities, environmental compliance
  4. Capital cost with quotations and a contingency
  5. Means of finance and the debt-equity mix
  6. Implementation schedule with milestones
  7. Operating cost and revenue assumptions
  8. Financial projections: P&L, cash flow, DSCR, IRR, break-even and sensitivity
  9. Risk analysis and mitigation
  10. Approvals and clearances status
A bankable DPR carries quotations, a contingency and a realistic approvals timeline.
A bankable DPR carries quotations, a contingency and a realistic approvals timeline. Photo: Prabhat1729 · CC BY-SA 4.0 · Wikimedia Commons

Mistakes that get proposals rejected

  • Capital cost without quotations or with no contingency
  • Revenue assumptions above industry benchmarks with no evidence
  • Missing statutory approvals or an unrealistic timeline to obtain them
  • Promoter contribution not evidenced
  • DSCR shown only for the base case

Kakode & Associates prepares DPRs and feasibility studies in India and abroad — see Detailed Project Reports & Feasibility Studies.

Why DPRs get sent back — common causes
  • Revenue assumptions not evidenced30%
  • Costs without quotations25%
  • Approvals not in hand20%
  • No contingency15%
  • Promoter contribution unclear10%

Illustrative share of causes seen across appraisal work.

Infrastructure DPRs stand or fall on land, approvals and a realistic construction schedule.
Infrastructure DPRs stand or fall on land, approvals and a realistic construction schedule. Photo: Kailash Mohankar · CC BY 3.0 · Wikimedia Commons