Factory Construction & Industrial Land Feasibility Calculator
What is the total project cost for establishing a greenfield factory and how much bank term debt vs promoter equity is required?
Financial Inputs
Pre-engineered building (PEB) shed, industrial flooring, civil administrative office, and perimeter walling.
High-tension transformer, DG backup, water treatment, fire-fighting NOC, and effluent treatment plant.
Promoter equity required by institutional lenders (typically 25% to 35% margin).
Total Capitalized Project Cost
T
Promoter Equity Contribution Needed
3,30,61,770
Bank Term Debt Facility Sizing
7,71,44,130
Key Financial Takeaways
- Total factory establishment capex sizes to ₹11,02,05,900 (Civil: ₹4,00,00,000, Land: ₹2,39,58,000, Plant: ₹3,50,00,000). Sized at a 30:70 debt-equity ratio, promoters must infuse ₹3,30,61,770 equity, supporting an institutional term debt facility of ₹7,71,44,130 (Year 1 debt commitment: ₹1,91,20,724).
Frequently Asked Questions
Will commercial banks finance 100% of the industrial land cost?
No. Indian commercial banks restrict land financing to a maximum of 20% to 25% of the total project capex. Lenders prefer the borrower to acquire the industrial land parcel from internal promoter equity or state industrial development corporation (RIICO, MIDC, GIDC) allotments.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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