Project Finance: A Practical DPR Preparation Checklist

What is a DPR used for?

A Detailed Project Report brings the proposed project, implementation plan, cost and funding assumptions into one explainable document. It helps a lender investigate whether the proposal is viable and how debt could be serviced. SBI’s project-finance information describes appraisal and financing of projects. A well-presented DPR supports assessment; it does not guarantee sanction.

Organize the report around evidence

• Describe the borrower, promoters, ownership, existing operations and purpose of the project.
• Explain the site, technology, suppliers, execution milestones and approvals. Distinguish signed commitments from estimates and discussions.
• Build a cost schedule with source documents and a funding schedule showing proposed debt, promoter contribution and other sources.
• Explain demand assumptions, capacity utilization, prices, input costs, working-capital needs and collection timing. Tie the model to a coherent operating plan.
• Provide projected cash flows and debt service, with clear treatment of construction-period interest, taxes and any proposed moratorium.

Test downside scenarios

As a planning exercise, test delayed completion, higher project cost, weaker sales, slower collections and higher interest rates. Choose stress assumptions that fit the project; a uniform 10% shock is not a universal banking rule. Explain the funding gap and who could fund it if a downside occurs.

Is consortium finance compulsory above ₹50 crore?

Do not assume a single threshold applies to every borrower or lender. The financing structure depends on lender exposure appetite, project needs and applicable policy. Ask whether bilateral, multiple-bank or consortium arrangements suit the proposal.

Does every project require the same equity contribution?

No universal percentage is stated here. Ask the proposed lenders about acceptable contribution, evidence of funds, timing of infusion and disbursement conditions. A model should reflect the actual terms being considered.

Discuss a ₹10 crore-plus requirement

CreditCares provides loan consultancy, with a Mumbai head office and Kolkata corporate office. For the scope of assistance, see our Project Finance service or request a consultation. Use the calculator for illustrations only.