What is a power cable project report?
A power cable project report is a detailed project report (DPR) for a unit that turns aluminium or copper rod into insulated, armoured LT power cable. It sets out the process, machinery, raw materials, BIS licence, market, project cost, means of finance, five-year projections, DSCR and break-even that a bank needs before it funds the plant.
Entrepreneurs and existing wire makers use it to size the plant and apply for a term loan; lenders use it to judge whether the unit can repay.
Also known as: project report on power cable, power cable business plan, LT power cable plant DPR, armoured cable manufacturing project report.
What a bank checks in a power cable project report
A credit officer reads a power cable report for metal risk and working capital first, because those two decide whether the unit stays liquid. These are the values in our sample report and why each one is tested.
Cable is mostly metal and polymer by value. A report that shows a much lower share is assuming prices no buyer will pay, so the bank checks it against current rod and compound rates.
Aluminium and copper prices move every week. The report should show what a 10% metal price rise does to profit if the price cannot be passed on.
Contractors and utilities pay late, so trade receivables are the largest current asset in the sample, at ₹292.64 lakh in Year 1. This sets the cash credit limit.
DSCR (debt service coverage ratio) is cash earned per rupee of loan instalment. It dips in Year 2, the first full year of repayment after the moratorium, and banks look at that lowest year.
Values are the assumptions in our illustrative sample. Your report uses figures for your sizes, suppliers and buyers.
Power cable manufacturing plant cost in India
Cost depends on daily output, whether you draw your own wire, and whether you add an XLPE line. The middle tier is the unit in our sample report; the other two are indicative ranges.
Small LT unit
₹2.5–4.5 crore
About 1,500–2,500 metres per day, PVC cable, bought-in drawn wire
- Machinery₹1–2 crore
- Shed and fit-out (or rent)₹50–100 lakh
- Working capital margin₹50–90 lakh
MSME term loan, often with CGTMSE cover
Integrated LT unit
₹768 lakh
4,300 metres per day, 12,90,000 metres per year
- Plant and machinery₹369 lakh
- Land and building₹202 lakh
- Working capital margin₹107 lakh
Term loan ₹576 lakh (75%), promoter ₹192 lakh
LT and HT plant
₹15–30 crore
About 10,000–20,000 metres per day, XLPE line, cables up to 11 kV
- Machinery₹8–15 crore
- Land and building₹3–6 crore
- Working capital margin₹2–5 crore
Term loan from a bank or consortium
Small and large ranges are indicative. PMEGP subsidy covers manufacturing projects only up to ₹50 lakh, so most cable units are financed by a term loan.
Is a power cable unit profitable? Sample plant economics
The sample report models a 4,300 metres per day unit running 300 days a year, starting at 60% of capacity and reaching 80% in Year 5. It takes one average selling price of ₹230 per metre across the sizes made.
| Land and site development | 55.66 |
|---|---|
| Building and civil works | 146.18 |
| Plant and machinery | 369.32 |
| Other fixed assets | 48.16 |
| Contingencies | 25.78 |
| Preliminary and pre-operative | 16.13 |
| Working capital margin | 106.80 |
| Total | 768.03 |
| Promoter's contribution (25%) | 192.01 |
|---|---|
| Term loan from bank (75%) | 576.02 |
| Cash credit limit (separate) | 320.40 |
| Total project cost | 768.03 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Power cable manufacturing process
An armoured LT power cable is built from the conductor outwards, one layer per machine. The sample report groups the work into five stages; a plant floor runs these eight.
- Wire drawing and annealing
Aluminium rod of about 9.5 mm or copper rod of about 8 mm is pulled through reducing dies; copper is then annealed to restore softness and conductivity.
- Stranding and compacting
Wires are laid in layers of 7, 19 or 37 and compacted, often into sector shapes for multi-core cable, to cut air gaps and overall diameter.
- Insulation extrusion
PVC or XLPE compound is extruded over each conductor, and an in-line spark tester flags pinholes in the insulation as the core runs.
- Curing (XLPE only)
Silane-grafted XLPE cores are cured in hot water or steam so the polymer cross-links and can run hotter than PVC.
- Laying up
Two to four coloured cores are twisted together with fillers and a binder tape so the cable stays round.
- Inner sheath and armouring
A PVC inner sheath cushions the cores, then galvanised steel wire or flat strip is wound on; single-core cables use aluminium armour.
- Outer sheath and marking
A PVC outer sheath is extruded and printed with size, voltage, standard and length marks at regular intervals.
- Routine tests and drumming
Each length is tested for conductor resistance and high voltage, then wound on wooden or steel drums for dispatch.
Raw materials for power cable manufacturing
Conductor metal is the cost that matters most. EC (electrical conductor) grade aluminium rod comes from primary aluminium producers and copper rod from copper refiners. Both follow international metal prices, so most units buy against monthly averages and hold about six weeks of stock.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Aluminium or copper rod | 65% | 840.33 |
| PVC compound (insulation and sheath) | 25% | 323.20 |
| Armour wire | 10% | 129.28 |
| Total | 100% | 1,292.81 |
XLPE compound replaces part of the PVC when you make XLPE cable. Wooden drums are counted under packing, at 2.2% of sales in the sample.
Machinery for a power cable plant
The extrusion line is the heart of the plant and the largest single cost in the sample. Testing equipment is a real budget line too, because BIS product manuals expect a cable maker to run its own laboratory.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Wire drawing machine | Draws rod down to strand size | 73.87 |
| Stranding machine | Lays and compacts wires into conductors | 73.86 |
| Insulation extrusion line | Extrudes PVC or XLPE over cores and sheaths the cable | 92.33 |
| Armouring machine | Winds steel wire or strip over the inner sheath | 73.86 |
| Testing laboratory | Resistance, high voltage, spark and material tests | 55.40 |
| Total plant and machinery | 369.32 | |
Costs are the sample report's estimates for a 4,300 metres per day line. Get current quotations before you finalise.
Who buys power cables, and how a new unit gets orders
Demand comes from power distribution, buildings, factories and solar plants that lay armoured cable underground or on trays. Large buyers purchase through tenders and approved vendor lists that ask for the ISI mark and type test reports.
A new unit usually starts with dealers and contractors, builds a test record, and then applies for vendor approval with utilities. Plan for this in the first two years of sales.
- State power distribution companies and electricity boards
- Electrical contractors and builders
- Industrial plants and EPC contractors
- Solar and infrastructure project developers
- Electrical dealers and distributors
- Government departments, through tenders and GeM
Quote with a metal clause: cable makers usually price large orders with a price variation clause tied to aluminium or copper rates. Without it, a metal price rise during a long contract comes straight out of your margin.
BIS licence and approvals for a power cable unit
Cables are a BIS-regulated product, so plan the licence and the laboratory together with the machinery. Rules below were checked on the BIS website in October 2026.
| XLPE cables up to 1,100 V | BIS licence (ISI mark) to IS 7098 (Part 1); BIS shows it under compulsory certification, implemented from 1 August 2020 |
|---|---|
| PVC heavy duty cables | IS 1554 (Part 1) for up to 1,100 V and IS 1554 (Part 2) for 3.3–11 kV; utility tenders ask for the ISI mark |
| PVC wires and flexible cables | IS 694, under compulsory certification through the Quality Control Order of 2003, if you also make building wires |
| In-house laboratory | The BIS product manual for IS 694 lists test equipment such as a Kelvin double bridge, high-voltage test set, spark tester, tensile tester and ageing ovens |
| Business and plant | Udyam and GST registration, State Pollution Control Board consent, factory licence and fire NOC as your state requires |
| Tender approvals | Type test reports from an accredited laboratory and vendor registration with each buying utility |
Mistakes that weaken a power cable business plan
- One price for every size
A 4 core 300 sq mm cable and a 2 core 4 sq mm cable differ many times in price per metre. Sales must follow a realistic size mix, or revenue is guesswork.
- Fixed metal price for five years
Projections that ignore metal price swings and price variation clauses show margins the unit will not hold in a bad quarter.
- No budget for BIS and type tests
The laboratory, licence fees and type tests come before the first tender order. Leaving them out delays sales and stretches working capital.
- Short credit period
Utility and contractor payments often run past 60 days, and tenders need earnest money and bank guarantees. A small cash credit limit leaves the unit short in Year 1.
- Ignoring scrap and drum cost
Start-up and changeover scrap and returnable drums add real cost per metre. Leave them out and cost per metre looks lower than it is.
How NPCS helps you set up a power cable unit
- Product range and capacityChoose conductor, voltage grade and sizes to match your buyers, and size the lines to that mix.
- Machinery and laboratoryCompare drawing, extrusion and armouring lines and list the test equipment BIS expects.
- Bank-ready project reportProjections, DSCR, metal price sensitivity and working capital in the format your lender wants.
- Approvals and layoutPlant layout, power load, BIS licence steps and the approvals list for your state.
NPCS's published client list records 49 assignments in electrical products, including a 2026 technical and financial feasibility report on electrical cables. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the power cable 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
18 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 power cable project reports
These are power cable 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 |
|---|---|---|---|---|---|
| Power Cable | 2050 MT/Annum Aluminium Power Cable,350 MT/Annum Copper Power Cable | ₹3.57 crore | 45% | 63% | Get this report |
| LV Control & Power Cables, MV Cables | LV Control 3x1.5 mm2 Copper (340 Kgs/KM): 28 KMtrs. /Day Power Cables 7x1.5 mm2 Copper (350 Kgs/KM): 28 KMtrs. /Day MV Power Cables, 1x50 mm… | ₹11.47 crore | 29% | 53% | 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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Power Cable project report: frequently asked questions
What is the power cable manufacturing plant cost in India?
A small LT cable unit making about 1,500–2,500 metres a day needs roughly ₹2.5–4.5 crore. A larger plant with an XLPE line and in-house wire drawing needs about ₹15–30 crore. Our sample report models a 4,300 metres per day unit at ₹768 lakh, including land, building and working capital margin. These ranges are indicative.
What raw materials are used to make power cables?
The conductor is EC grade aluminium rod or copper rod. Insulation is PVC or XLPE compound, the inner and outer sheaths are PVC, and the armour is galvanised steel wire or strip. In our sample report the conductor metal is 65% of raw material cost, PVC compound 25% and armour wire 10%.
Which machines are needed for a power cable plant?
You need a wire drawing machine, an annealer for copper, and stranding and compacting machines. Then come an insulation extrusion line with a spark tester, a laying-up machine, a sheathing line, an armouring machine and a testing laboratory. In our sample the insulation line is the largest single item at ₹92.33 lakh.
Is BIS certification mandatory for power cables?
Yes for many types. BIS lists XLPE insulated cables up to 1,100 V to IS 7098 (Part 1) under compulsory certification from 1 August 2020. PVC insulated cables to IS 694 fall under an older Quality Control Order. Check the current BIS list for each standard you plan to make before you order machines.
Is power cable manufacturing profitable?
It can be, if metal prices are passed on to buyers. In our illustrative sample, a 4,300 metres per day unit earns a 22% return on investment in Year 3. It breaks even at 43% of capacity and pays back in about 3.6 years. Real profit depends on product mix, metal price clauses and how fast buyers pay.
Should a new unit make aluminium or copper power cables?
Most new LT units start with aluminium armoured cable, because utilities and contractors buy it in volume and the metal costs less per metre of capacity. Copper cable sells to factories and buildings that need smaller sizes. Many units run both on the same drawing and extrusion lines, so the report should model the mix you plan.
Is the power cable project report PDF free, and can I use it for a bank 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 from a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, location and lender.
Sources and references
- Products under compulsory certification: Scheme-I (ISI mark)Bureau of Indian Standards, checked Oct 2026
- IS 7098 (Part 1): XLPE insulated PVC sheathed cables up to 1,100 V, standard detailsBureau of Indian Standards, checked Oct 2026
- Indian Standards for power cablesBureau of Indian Standards, checked Oct 2026
- Product manual for PVC insulated cables, IS 694Bureau of Indian Standards, checked Oct 2026
- PMEGP scheme detailsHimachal Pradesh Khadi and Village Industries Board, 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.