What is a artificial sand (m-sand) project report?
An artificial sand project report is a detailed project report (DPR) for a unit that crushes quarry waste and stone into graded M-sand. NIIR has long listed it as artificial sand from stones waste metals. It covers process, machinery, stone supply, market, cost, finance, projections, DSCR and break-even.
Promoters use it to size a crushing and sand plant and apply for a term loan; lenders use it to check whether sand sales can repay the loan.
Also known as: M-sand project report, manufactured sand plant project report, crushed stone sand project report, artificial sand business plan.
What a bank checks in an artificial sand project report
An M-sand plant sells a low-priced, heavy product, so a lender looks hard at stone cost, power and how fast buyers pay. These are the values in our sample report and why each one matters.
Stone, royalty and freight make up most of it. A lower figure usually means the report has left out royalty or the haul from the quarry.
Crushers, the VSI and the washer draw heavy load, and loaders run on diesel. Banks compare this with your sanctioned load and tariff.
DSCR, the debt service coverage ratio, is cash available divided by loan repayment due. The sample's lowest year is 1.48; banks want it comfortably above 1 in every year.
Builders and contractors expect credit. Debtor days set the cash credit limit, which is ₹72.93 lakh in the sample.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, stone source and buyers.
How much does an M-sand plant cost?
Cost depends on daily output, whether you wash the sand, and whether you already run a stone crusher. The middle tier is the unit in our sample report; the other two are indicative ranges.
Add-on to a crusher
₹60–150 lakh
About 100–200 MT per day, VSI added to an existing crusher
- VSI and screens₹35–70 lakh
- Sand washer₹10–30 lakh
- Conveyors, electricals, civil₹15–50 lakh
MSME term loan, CGTMSE cover where eligible
Standalone M-sand unit
₹491 lakh
340 MT per day, 1,12,200 MT per year
- Plant and machinery₹258 lakh
- Land and building₹155 lakh
- Working capital margin₹24 lakh
Term loan ₹368 lakh (75%), promoter ₹123 lakh
Large washed-sand plant
₹10–20 crore
About 800–1,500 MT per day, concrete and plaster sand
- Crushing, VSI and washing₹5–10 crore
- Land, civil and water recycling₹3–6 crore
- Working capital margin₹50–150 lakh
Term loan with collateral, often tied to a quarry
Add-on and large ranges are indicative and exclude a quarry lease. Costs vary with stone hardness, running hours and machine make.
Artificial sand plant economics in the sample report
The sample models a 340 MT per day unit running 330 days a year, starting at 60% capacity and reaching 80% in Year 5. Sand is priced at ₹950 per MT ex-plant, before freight.
| Land and site development | 52.39 |
|---|---|
| Building and civil works | 102.92 |
| Plant and machinery | 258.21 |
| Other fixed assets | 24.06 |
| Contingencies | 18.06 |
| Preliminary and pre-operative | 11.39 |
| Working capital margin | 24.31 |
| Total | 491.34 |
| Promoter's contribution (25%) | 122.84 |
|---|---|
| Term loan from bank (75%) | 368.50 |
| Cash credit limit (separate) | 72.93 |
| Total project cost | 491.34 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Artificial sand manufacturing process
M-sand is made by crushing stone in three stages and then shaping the grains. The old trade name "from stones waste metals" refers to this feed: quarry rejects, oversize boulders and stone "metal" that a crusher cannot sell as aggregate.
- Feeding and scalping
A vibrating grizzly feeder takes boulders from the hopper and screens out soil and undersize before crushing.
- Primary crushing
A jaw crusher breaks the stone to below about 150 mm.
- Secondary crushing
A cone crusher brings it down to about 40 mm, the feed size the VSI can take.
- Sand shaping in the VSI
The vertical shaft impactor throws stone against stone, which gives cubical grains instead of the flaky particles a cone alone produces.
- Screening
Vibrating screens split concrete sand below 4.75 mm and plaster sand below 2.36 mm, and send oversize back to the VSI.
- Washing and classifying
A sand washer removes excess fines and silt so the sand meets the limits for concrete.
- Water recycling and stockpiling
Wash water is settled and reused, and drained sand is stockpiled under cover for dispatch.
Wet or dry: washing gives cleaner sand but needs water, a settling pond and a way to handle silt. In dry areas some plants use air classification instead to remove fines, which changes the machinery cost and power load.
Stone and other inputs for M-sand
The main input is waste stone bought from quarries and crushers, with royalty paid at source. In the sample it is 78% of raw material cost, and its price depends far more on the haul distance than on the stone itself.
| Input | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Quarry waste boulders and rejects (including royalty and freight) | 78% | 239.40 |
| Crusher dust and quarry fines | 17% | 52.18 |
| Make-up water and flocculant for washing | 5% | 15.35 |
| Total | 100% | 306.93 |
Hard granite and basalt give better sand but wear crusher liners and VSI tips faster than softer stone.
Machinery for an artificial sand plant
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Vibrating grizzly feeder with hopper | Feeds stone evenly and removes soil | 15.49 |
| Jaw crusher | Primary crushing of boulders | 36.15 |
| Cone crusher | Secondary crushing to VSI feed size | 46.48 |
| Vertical shaft impactor sand maker | Makes and shapes the sand grains | 61.97 |
| Vibrating screens | Splits concrete and plaster sand grades | 25.82 |
| Sand washer and classifier with water recycling | Removes silt and excess fines | 30.99 |
| Belt conveyors and stackers | Moves material between stages and to stockpiles | 25.82 |
| Dust suppression system and control panel | Water sprays at transfer points, plant controls | 15.49 |
| Total plant and machinery | 258.21 | |
Costs are the sample report's estimates for a 340 MT per day line. Get current quotations, and ask each supplier for wear-part prices.
Market for artificial sand in India
River sand mining is restricted and stops in the monsoon, so builders now plan around manufactured sand. The Ministry of Mines' Sand Mining Framework (2018) names sand from crusher dust as an alternative, and Coal India is turning mine overburden into sand.
States are also backing it. Tamil Nadu's M-Sand Policy 2023 aims at zero-waste quarrying, which pushes crushers to turn their rejects into sand. Demand is steady through the year, with a dip in heavy rain when sites slow down.
- Ready-mix concrete plants, which want consistent grading every day
- Builders and construction contractors
- Concrete block and paver makers
- Government and PWD works contractors
- Building material traders in towns near the plant
Where a new unit wins: sand is cheap and heavy, so freight can approach the ex-plant price within a short haul. A plant near both its stone source and its buyers can undercut sand trucked in from far away.
Licences and approvals for an M-sand unit
As of October 2026, these are the approvals a unit that buys its stone usually needs. Running your own quarry adds a mining lease, mining plan and environmental clearance.
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board. Odisha's board lists stone crushers as Orange category; lists are revised, so confirm your state's current category |
| Stone movement | Royalty-paid transit passes from the state mines and geology department for every load of boulders you receive |
| Product standard | IS 383 : 2016 (coarse and fine aggregate for concrete) covers manufactured sand; buyers and government works test against it |
| State M-sand policy | Some states register or certify M-sand units under their own policy, for example Tamil Nadu's M-Sand Policy 2023 |
| Power and water | Industrial power connection for the full crushing load, and a reliable water source if you wash sand |
Mistakes that weaken an M-sand project report
- Using the delivered price as the selling price
Rates quoted on sites include freight. The plant earns only the ex-plant price, so revenue and DSCR come out too high.
- Assuming every tonne of stone becomes sand
Screening returns oversize and the washer removes fines, so saleable sand is less than the stone fed. The report must show this loss.
- Leaving out wear parts
VSI rotor tips, anvils, jaw plates and cone mantles are replaced regularly, more often with hard granite. They are a real running cost.
- No secure, legal stone supply
Without a written supply from royalty-paying quarries, loads can be seized and the plant stops. Lenders ask where the stone comes from.
- Ignoring silt and dust
A plan for the settling pond, sludge disposal and dust sprays is part of the consent. Leaving it out delays approval and adds cost later.
How NPCS helps you set up an artificial sand unit
- Capacity and stone sourceSize the plant to the stone you can secure and the sand your area buys.
- Crushing and washing lineCompare VSI, screen and washer options, wet or dry, and get quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format your lender wants.
- Approvals and layoutPlant layout with stockpiles and settling pond, power load and the approvals list for your state.
NPCS's published client list includes 3 assignments for artificial sand units and 48 in recycling and waste processing. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the artificial sand (m-sand) sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS artificial sand (m-sand) project reports
These are artificial sand (m-sand) project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Artificial Sand From Stones AND Waste Metals | 240000 MT/Annum | ₹4.6 crore | 43% | 55% | Get this report |
| Artificial Sand From Stones AND Waste Metals | 720000MT/Annum | ₹10.66 crore | 44% | 51% | Get this report |
| Artificial Sand from Stones and Waste Metals | 2400 MT/Day | ₹11.91 crore | 30% | 58% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Artificial Sand (M-Sand) project report: frequently asked questions
How much does it cost to set up an M-sand plant in India?
An add-on unit that puts a VSI and screens beside an existing crusher needs roughly ₹60–150 lakh. A standalone plant of a few hundred tonnes a day costs about ₹4–6 crore, and our sample report models 340 MT per day at ₹491 lakh. Large washed-sand plants run to ₹10–20 crore. These are indicative ranges; your report prices your own capacity and site.
Is artificial sand manufacturing profitable?
In our illustrative sample, a 340 MT per day unit selling at ₹950 per MT earns a 19% return on investment in Year 3. It breaks even at 42% of capacity and pays back in about 3.8 years. Real results depend on what you pay for stone, power cost, plant running hours and how far your buyers are from the plant.
Which machines are needed to make artificial sand?
A typical line has a vibrating grizzly feeder, a jaw crusher, a cone crusher and a vertical shaft impactor (VSI) that shapes the sand. After it come vibrating screens, a sand washer and classifier, belt conveyors and dust suppression. In our sample report the VSI is the largest single machine cost, at ₹61.97 lakh of ₹258.21 lakh.
What is the difference between M-sand and P-sand?
Both come from the same crushing line. Concrete M-sand is screened below 4.75 mm and goes into concrete, blocks and ready-mix. Plaster sand, often called P-sand, is screened finer, below 2.36 mm, and is used for plastering and masonry. Many plants sell both, because the screen deck can split one VSI output into the two grades.
Do I need a mining lease to start an artificial sand unit?
Not if you buy stone. A unit that buys boulders, quarry rejects and crusher dust needs pollution board consent and royalty-paid transit passes with every load. A mining lease, mining plan and environmental clearance are needed only if you quarry the stone yourself, and those approvals usually take the longest. Rules differ by state, so check with your mines department.
M sand plant ka business kaise shuru kare?
Start by fixing a steady source of royalty-paid stone within a short haul, then choose capacity from local demand. Get land with space for stockpiles and a settling pond, apply for pollution consent, and take machinery quotations. A project report then works out cost, loan and repayment. Most plants exceed the PMEGP limit of ₹50 lakh, so they use a bank term loan.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, stone source, location and lender.
Sources and references
- Product manual for IS 383 : 2016, Coarse and fine aggregate for concreteBureau of Indian Standards, checked Oct 2026
- Newsletter, May 2018: manufactured sand and IS 383 : 2016CSIR-Central Building Research Institute, checked Oct 2026
- Categorization of industrial sectors under Orange categoryState Pollution Control Board, Odisha, checked Oct 2026
- Coal India M-sand from overburden and the Sand Mining Framework (PIB, 27 Jan 2023)Ministry of Coal, Government of India, checked Oct 2026
- Tamil Nadu M-Sand Policy 2023State Planning Commission, Government of Tamil Nadu, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP)MSME and Export Promotion Department, Government of Uttar Pradesh, checked Oct 2026
- Credit Guarantee Fund Trust for Micro and Small EnterprisesCGTMSE, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.