What will your factory actually cost to set up?
Land, building, plant, contingency, pre-operative expenses, interest during construction and working capital margin — the full cost sheet a bank expects, with the means of finance balanced against it and the debt service coverage they will test you on.
Your project model
Cost sheet, means of finance, interest during construction, working capital, an eight-year projection and the debt service coverage a lender will test you on.
Where this differs from a spreadsheet
Interest during construction is computed month by month. The standard shortcut in Indian project reports is P × r × y ÷ 2 — the whole loan, for half the period. It assumes you draw the money evenly, which no construction programme does. We model a back-loaded drawdown, because plant and machinery is the largest line and it is paid late, which produces a lower and more defensible figure.
Sources are made to equal uses, exactly. Interest during construction is part of project cost, project cost sets the loan, and the loan sets the interest — a genuine circularity that most spreadsheets resolve by ignoring. We iterate it to convergence and then assert the balance holds to the paisa, refusing to return a model at all if it does not.
We will not quote an IRR we cannot stand behind. A cash-flow series that changes sign more than once can have several internal rates of return. Excel returns whichever one its search lands on, silently. Where that happens we withhold the figure, say why, and give you the modified IRR instead, which is unique by construction.
The moratorium is modelled properly. Greenfield term loans almost always carry a principal moratorium during construction. Treating repayment as starting on day one flatters the early-year DSCR — which is precisely the year a credit officer stress-tests.