Detailed Project Report (DPR) for Silage Making Unit
Submitted to: National Livestock Mission (NLM) & Bank
Project Capacity: 2000–2400 MT per annum
Repayment Period: 10 Years
1. Introduction
This Detailed Project Report (DPR) has been prepared for setting up a Silage Making Unit
with an annual production capacity of 2000–2400 MT. The project is proposed under the
guidelines of the National Livestock Mission (NLM). The unit will ensure availability of
quality silage for livestock, leading to enhanced milk production, better feed management,
and improved farmer income. The project also ensures long-term sustainability through
mechanized processes.
2. Objectives of the Project
• To establish a mechanized silage making unit with 2000–2400 MT capacity per annum.
• To ensure round-the-year availability of quality silage for dairy farmers.
• To enhance milk productivity and profitability of livestock farmers.
• To generate direct and indirect employment opportunities in rural areas.
3. Project Components & Cost
Sl. No. Item Cost (₹)
1 Construction of shed and 15,00,000
godown (2000 sq. ft)
2 Bailing Unit (120-150 MT), 18,00,000
one no.
3 Harvester, one no. 17,00,000
4 Power operated chaff 180,0000
cutter, one no.
6 Shed for machinery storage 18,00,000
(60’x50’x20’) @2000 per
sq. ft
7 Tractor with mounted 14,00,000
trolley, one no.
Total Project Cost (Approx.): ₹1,00,00,000
4. Means of Finance
• Promoter’s Contribution: 25% (₹18,33,000 approx.)
• Bank Loan: 75% (₹54,99,000 approx.)
• Eligible for NLM Subsidy as per guidelines
5. Implementation Schedule
The project is expected to be implemented within 6 months from the date of sanction of
loan and subsidy.
6. Financial Projections
The financial projections have been worked out considering a 10-year repayment period.
Revenue is expected to be generated from the sale of silage at an average rate of ₹4,000 per
MT.
Projected Annual Revenue: 2000 MT x ₹4,000 = ₹80,00,000 (minimum).
7. Repayment Schedule (Indicative)
Loan Amount: ₹54,99,000
Repayment Period: 10 Years
Interest Rate: 10% (assumed)
Indicative repayment will be structured in 20 half-yearly instalments (Principal + Interest).
First repayment will start after a moratorium of 1 year.
8. Benefits of the Project
• Ensures year-round fodder availability.
• Reduces wastage of green fodder and improves storage life.
• Enhances milk productivity of livestock farmers.
• Promotes rural entrepreneurship and employment generation.
9. Conclusion
The proposed Silage Making Unit is financially viable, technically feasible, and socially
beneficial. With the support of the National Livestock Mission (NLM) and bank financing,
the project will contribute significantly to livestock development and farmer prosperity.