1. Objective :
2. Location and area of operation :
Suburbs of cities and villages around
urban centres can be ideal locations for practice of
vermicomposting on a large scale, from the point of view of
availability of raw material and marketing of the produce.
Unit may also be located in areas with concentration of
fruits and vegetables and floriculture units.
3. Project components :
i) Sheds : For a vermi-composting unit,
whether small or big, could be of thatched roof supported by
bamboo rafters and purlins, wooden trusses and stone
pillars.
ii) Vermi-beds : Normally the beds are 75
cm - 90 cm thick depending on the provision of filter for
drainage of excess water. The entire bed area could be above
the ground.
iii) Land : About 0.5-1 acre of land will
be needed to set up a vermiculture production cum extension
centre. Even sub marginal land also will serve the purpose.
iv) Buildings & Furniture : In the
activity on a large scale on commercial lines, considerable
amount may have to be spent on buildings to house the
office, store the raw material and finished product, provide
minimum accommodation to the personnel. A reasonable amount
could also be considered for furnishing the
office-cum-stores including the storage racks and other
office equipment.
v) Seed Stock : Worms @ 350 worms per m3
of bed space should be adequate to start with and to build
up the required population in about two to three cycles.
vi) Fencing, Roads/Paths and Water Supply
System : The site area needs development for construction of
structures and development of roads and pathways for easy
movement of hand-drawn trolleys/ wheel barrows for conveying
the raw material and the finished products to and from the
vermi-sheds. There is also need to plan for a water source,
lifting mechanism and a system of conveying and applying the
water to the vermi-beds.
vii) Machinery : Farm machinery and
implements are required for cutting (shredding) the raw
material in small pieces, conveying shredded raw material to
the vermi-sheds, loading, unloading, collection of compost
and such related activities.
viii) Transport : For any vermi-composting
unit transport arrangement is a must. A large sized unit
with about 1000 tonnes per annum capacity may require a
tonne capacity mini-truck.
4. Project Cost :
A. Capital Cost
Item Cost (Rs.)
1 Construction of a temporary shed for
setting up 200tpa vermi-compost unit 72,000
2 Implement and Machinery for a 200tpa
unit 80,000
3 Office cum store 60,000
4 Water source 60,000
5 Two NADEP tanks 5,000
Total 277,000
B. Recurring Cost
Item Cost (Rs.)
1 Feed stock & handling cost @ Rs. 72,000
per cycle for 5 cycle in a year 360,000
2 Rent on lease @ Rs. 8,000 per year
8,000
Total 368,000
Total Project Cost : Capital cost - Rs.
2,77,000
Recurring cost - Rs. 1,44,000
capitalised
Total Rs. 4,21,000
5. Margin
(20%) : Rs. 0.85 lakhs
6. Bank loan : Rs. 3.36 lakhs
7. Rate of interest : 15% p.a.
8. Repayment period : 8 years
including grace period of one year
9. Income
Item Rs. Rs.
(I year) (II year)
1 Sale of vermi-compost @ Rs. 2500 per
ton 300,000 450,000
2 Sale of worms @ 5 kg per tonne of
compost and Rs. 50 per kg 45,000
3 Consultancy and extension services
10,000
Total 300,000 505000
Net Benefit 79,200 137,000
10. Economics of the Project :
a. NPW : Rs. 2.35 lakhs
b. BCR : 1.12 : 1
c. IRR : 36%
note :
• Margin of 20% is assumed, but the
actual margin will be as per the discretion of the banks.
• Interest rate of 15% is assumed,
however, the actual rate will be as per banks' discretion.
• Similarly, the other economic /
financial parameters such as the repayment period, DSCR,
IRR, etc., may also vary depending upon the margin,
interest rate, etc., taken into account by the bank
