Trial Production Circulating Capital Stages/Steps involved in stage 2 Preliminary project Repot Vs Project Report

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 Project Report No Objection Certificate Obtaining Formal Sanction of Loan Construction of Building and installation of Machinery Detailing Manpower

Establishing Market Network

Application for Permanent Registration

 Project report is a document that bears every detail of the project under various heads like History, Product ,Marketing strategies , Machinery and raw material Finance ,Profitability etc. It is basically a business plan Describes all necessary inputs to the enterprise Outlines the desired goals

 In case of small scale sector no objection certificate is not required. However, in the case of manufacturing certain chemical products, use of mineral of forest product, preparation of medicine etc. Permission is required from pollution control board for certain units like paper based industries, tanneries etc.

Obtaining Formal Sanction of Loan

After deciding about the finance required in enterprise, the entrepreneur apply for loan to banks or financial institutions.
Once formal sanction of loan is obtained, the entrepreneur can arrange seed money through soft loan

Once an industrial plot for the unit is finalized, the next step is to find a suitable architect to design the outlay of area and factory and estimate of building construction. Machinery should be installed and checked by experts for capacity, cost and quality. Entrepreneur should visit the manufacturer to inspect the machine before it is shipped to his unit, it may avoid last minute installation problems.

Detailing Man Power

Once the machinery is in place and operational man power should be allotted their work and a trial production process should be initiated with raw material already processed

Entrepreneur must establish linkage with different distributors and sellers by showing them the product manufactured.

This type of network will facilitate smooth marketing of the product.

After the start of commercial production, the entrepreneur is required to apply to the District Industries Centre for obtaining permanent registration of the unit.

Project Report 1. It is a permanent Report. 2. It enables entrepreneur to apply only for loan. 3. It tells about history, product , machinery, raw material etc.

Preliminary Project Report 1. It is a temporary report.

2. It enables an entrepreneur to apply for loan, electricity and water 3. It tells about cost.