indraprastha project
TRANSCRIPT
CNG V/S PETROL VEHCILES IN DELHI: A SURVEY OF USERS ON BEHALF OF INDRAPRASTHA GAS LIMITED
Dissertation Submitted toInstitute for Technology and Management, Bangalore
For the Partial Fulfillment of the PGDM Program
By
JUNAID IQBAL
Reg. No: PDGM 2010-12/55
Under the Guidance of:
Company Guide Institution Guide P.R Rajesh Dr.B.S.Patil Head, Dept. of Human Resources Director Indraprastaha Gas Ltd. I.T.M Bangalore
INSTITUTE FOR TECHNOLOGY AND MANAGEMENTBANGALORE-560083
20010-12
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DECLARATION
I, Junaid Iqbal, ITM - Bangalore, Project Trainee, hereby declare that the following project report titled:Analysis of CNG v/s PETROL Vehicles is an authentic work done by me.
The information and data furnished in this report are true and to the best of my knowledge.
I acknowledge that I sought assistance of both primary and secondary data collection through various available resources.
Junaid IqbalITM - Bangalore
Project Trainee – Indraprastha Gas Limited
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INSTITUTE FOR TECHNOLOGY AND MANAGEMENT BANGALORE – 560083
CERTIFICATE
This is to certify that Mr./Ms……………………………………………with registration number………………………….has successfully completed the project work, titled ……………………………………………………….………………………………………………………..required for the partial fulfillment for the award of Post Graduate Diploma in Management (PGDM) degree during the academic year 2011-2012.
This project work has not been published anywhere or submitted either wholly or partially for award of any degree/diploma. It is an original work carried out by the candidate under the supervision of the faculty guide.
Signature of Guide Signature of Director
Dr. B. S. Patil Dr. B.S. Patil
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ACKNOWLODGEMENT
Apart from the efforts of, the success of any project depends largely on the encouragement and guidelines of many others. I take this opportunity express my gratitude to the people who have been instrumental in the successful completion of this project.
I would like to show my greatest appreciation to Dr. B.S.Patil, Director of ITM Bangalore and to Mr.P.R.Rajesh, Head of Dept. (H.R) of Indraprastha gas limited. I would also like to show my greatest appreciation to Mr.Vedvyas, Head of Dept. (Marketing) of Indraprastha gas limited. I can’t say thank you enough for this tremendous support and help. I feel motivated and encouraged every time I attend his meeting. Without their encouragement and guidance this project would not have materialized.
The guidance and support received from all the members who contributed and who are contributing to this project, was vital for the success of the project. I am grateful for theirconstant support and help.
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TABLE OF CONTENTS:
Serial No. CONTENTS Page No.I. EXECUTIVE SUMMARY 7-8
II. INTRODUCTION Company Profile Company History Company Bankers/ Auditors Company Board of Directors Company Business Company Background Sourcing of Gas: GAIL the sole supplier IGL’s source pipeline structure CNG PNG
9-22
III. ANALYSIS OF CNG SALES,STATIONS & PRICE CNG sales Type of CNG stations CNG supply infrastructure Robust demand for CNG in Delhi and Ncr CNG price hike in Delhi
23-31
IV. PROJECT DEFINITION Research Design Research Methodology Scope of the Project Sampling Element Sampling Unit Sample Size Source of Information Research Method for collecting data Sampling Technique Sampling Tool for collection information Questionnaire Type
DATA ANALYSIS Simple Tabulation Cross Tabulation
32-59
V. RESULT OF STUDY Barriers Limitations of study
Conclusions and recommendations
60-62
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APPENDIX -1(CNG sales) 63-69
APENDIX-2( CNG stations details) 70-73
APPENDIX-3(questionnaire) 74-76
APPENDIX-4(questionnaire) 77-79
REFERENCES 80
REVIEW OF LITERARURE
Learning from the project Skills gained through the project
81-83
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CHAPTER 1 EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
Natural gas applications are one of the most exciting developments that have happened in the city gas distribution industry of India. This report presents a study on the barriers in the owner ship of CNG in terms of infrastructure, Vehicles performance (in terms of mileage, pick up, reliability, maintenance cost) safety, etc.
It analyses the various reasons why the petrol car owners are not willing to install a CNG kit. Finally, it gives recommendations to the problem faced by the buyers of CNG and Non-buyers of CNG.
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CHAPTER 2
INTRODUCTION
COMPANY PROFILE:
VISION
'To be the leading clean energy solutions provider, committed to stakeholder value enhancement, Through operational excellence and customer satisfaction'.
This Vision statement signifies five major attributes for the organization:
Commitment to environment Providing complete energy solutions thereby going beyond CNG for transport and PNG for
cooking applications
Enhancing value for the stakeholders including customers, shareholders and employees
Achieving excellence in our operations
Providing satisfaction to the customers
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Philosophy
The business philosophy of IGL would encompass the following: Strong commercial orientation Best operating practices
Value addition at every step
Quality Customer Service
Team effort
Develop a Learning Organization
COMPANY HISTROY
Emergence of IGL
Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited).
The project was started to lay the network for the distribution of natural gas in the National Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors. With the backing of strong promoters – GAIL (India) Ltd. and Bharat Petroleum Corporation Ltd. (BPCL) – IGL plans to provide natural gas in the entire capital region.
The two main business objectives of the company are - To provide safe, convenient and reliable natural gas supply to it’s customers in the
domestic and commercial sectors. To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s
residents. This will considerably bring down the alarmingly high levels of pollution.
The transport sector uses natural gas as Compressed Natural Gas (CNG), the domestic and commercial sectors use it as Piped Natural Gas (PNG) and R-LNG is being supplied to industrial establishments.
Future OutlookIGL continues to augment its infrastructure so as to meet the increasing demand of CNG arising out of growing number of CNG vehicles in Delhi. The growth drivers for increase in demand of CNG are - car manufacturers coming up with CNG variants and Delhi
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Government’s directive making it mandatory for all LCVs operating in Delhi to run on CNG. The company is in the process of enhancing its compression capacity by adding new stations.
On the PNG front, IGL has planned to expand its business activities in Delhi and its neighboring towns like Noida, Greater Noida and Ghaziabad. Our customers will now be benefited with supply of PNG for non cooking applications like Geysers also. IGL is also working towards expanding its PNG network to cover all charge areas of Delhi by 2012.
Industrial and commercial segments would be the focus areas for the organization in the future.
COMPANY BANKERS / AUDITORS
Bankers
Canara Bank ICICI Bank Limited
Jeevan Bharti Building, Tower IIParliament StreetNew Delhi – 110001
Corporate & Institutional Banking Division9A, Phelps BuildingConnaught PlaceNew Delhi - 110001
IDBI Bank Limited State Bank of India
1/6 Siri Fort Institutional AreaKhel Gaon MargNew Delhi – 110049
Corporate Accounts Group Branch11th Floor, Jawahar Vyapar Bhawan1, Tolstoy MargNew Delhi - 110001
The Hongkong and Shanghai Banking Corporation Limited
Birla House, 25 Barakhamba RoadNew Delhi -110001
Auditors
Deloitte Haskins & Sells
Chartered AccountantsMCT House, One Okhla CentreBlock – A, Okhla Institutional Area,New Delhi – 110025
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COMPANY BOARD MEMBERS:
Management
A brief look at the people behind IGL - the organization committed to a cleaner and greener environment.
Mr. B C Tripathi, Chairman Mr. K K Gupta, Director
Mr. Rajesh Vedvyas, Managing DirectorMr. Manmohan Singh, Director
(Commercial)
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Mr. S S Rao, Director Mr. R K Verma, Director
Prof. V Ranganathan, Director Mr. S S Dalal, Director
COMPANY BUSINESS:
PNG
CNG
PNG:. ABOUT
PNG is mainly methane – CH4 with a small percentage of other higher hydrocarbons. The ratio of carbon to hydrogen is least in methane and hence it burns almost completely making it the cleanest fuel. It is procured from the oil / gas wells and transported through a network of pipelines across the country.
BENEFITS
knowing fully well that Piped Natural Gas is the obvious choice for us to make, wouldn't it be apt if we called PNG Positively Natural Gas!!
PNG has several distinctions to its credit- of being a pollution-free fuel, easily accessible minus storage troubles, and being available at very competitive rates.
When you choose PNG, you are making a wise decision. Why not enhance your comfort and improve your lifestyle for the years to come? Experience the versatility and performance of this reliable energy source. With PNG you don't need to make any choices, for its characteristics make it the best option for domestic and commercial purposes.
Uninterrupted supplyThe source of PNG supply in Delhi is the famous Hazira-Bijaipur-Jagdishpur (HBJ) pipeline of GAIL (India) Limited. PNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problem of storing gas in cylinders.
Unmatched convenience The domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and again. Then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exercise unnecessary. PNG
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also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it being underweight, at the time of delivery. Moreover, the user is spared the inconvenience of connecting and disconnecting the LPG cylinder when out of gas. Precious space, occupied by LPG cylinders is also saved.
SafetyThe combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% of the air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world. Safety Tips
Natural gas is lighter than air. Therefore, in case of a leakage, it just rises and disperses into thin air given adequate ventilation. But LPG being heavier will settle at the bottom near the floor surface.
A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer since PNG installation inside your premises contains only a limited quantity of natural gas at low pressure i.e. 21 millibar (mbar).
On leakage, LPG expands 250 times, which is not the case with PNG. Supply in PNG can be switched off through appliance valve (inside the kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply.
BillingThe user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consumer pays the PNG bill only once in four months.
Moreover, there are no minimum consumption charges ie, if there hasn’t been any consumption, there shall not be any bill.
The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the user’s doorstep. List of collection centers/drop boxes
Customer supportRound-the-clock customer support is assured through 24 hrs toll free number 1800112535, 64543592, 64733166 and 64563655 backed by control rooms, which are manned by engineers and trained technicians. Thus complaints, if any, are promptly redressed.
A versatile fuelNatural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and commercial applications, as a cooking fuel, for water heating, space heating, air conditioning, etc.
Environment friendlyNatural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in place of other more polluting energy sources. Its combustion results in virtually no atmospheric emissions of sulphurdioxide (SO2), and far lower emissions of carbon monoxide (CO), reactive hydrocarbons and carbon
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dioxide, than combustion of other fossil fuels.
In fact, when natural gas burns completely, it gives out carbon dioxide and water vapour. These are the very components that we exhale!
No daily liasioningThe consumer is spared the task of liasioning with oil companies and co-ordinating with them for ensuring the daily supply of fuel, because PNG is supplied directly through pipes.
The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too as per the meter reading.
No spillage and pilferageIn case of fuels like HSD and LDO, there are considerable chances of spillage and pilferage. In case of PNG these losses are invariably done away with, for PNG is supplied through pipes.
Billing - No up-front paymentThe user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. The commercial consumer pays on a monthly basis. Moreover, there are no minimum consumption charges, ie, if there hasn’t been any consumption, there shall not be any bill.The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the user’s doorstep.
Lower maintenance costWith PNG, soot or ash accumulation and greasy spillages are absent from your appliance. Maintenance costs are, thus, driven down.
CNG:. ABOUT
CNG stands for compressed natural gas. It is gaseous fuel and is a mixture of hydrocarbons mainly Methane. For use in Automobiles as fuel, it is compressed to a pressure of 200-250 Kg/cm² to enhance the vehicle on-board storage capacity.
BENEFITS
We at IGL envisage a long lasting friendship between CNG and its consumers. And while every friendship in itself is to be desired, it is said the initial cause of friendship is from its advantages.
Furthermore, when you are apprised of the advantages of using CNG, this friendship is certain to leap from being strong to stronger.
The advantages of using CNG are varied and distinct. The first and most important benefit of using CNG is that you are using a 'green fuel'.
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Presented below is an outline of the benefits that CNG offers –
Green fuel -Commonly referred to as the green fuel because of its lead and sulphur free character, CNG reduces harmful emissions. Being non-corrosive, it enhances the longevity of spark plugs. Due to the absence of any lead or benzene content in CNG, the lead fouling of spark plugs and lead or benzene pollution are eliminated.
Increased life of oils -Another practical advantage observed is the increased life of lubricating oils, as CNG does not contaminate and dilute the crankcase oil.
Mixes evenly in air -Being a gaseous fuel CNG mixes in the air easily and evenly.
Safety -CNG is less likely to auto-ignite on hot surfaces, since it has a high auto-ignition temperature (540 degrees centigrade) and a narrow range (5%-15%) of inflammability. It means that if CNG concentration in the air is below 5% or above 15%, it will not burn. This high ignition temperature and limited flammability range makes accidental ignition or combustion very unlikely.
Properties Unit Petrol Diesel LPG CNG
Relative density Water = 1 0.74 0.84 0.55 -
Relative density Air =1 - - 1.285 0.64
Auto-ignition
Temperature Degree C 360 280 374 540
Flammability Range % in Air 1-8 0.6-5.5 2.2-9.0 5-15
Flame Temperature Degree C 2,030 1,780 1,983 1,900
Octane Number - 87 - 93 127
Low operational cost -The operational cost of vehicles running on CNG, as compared to those running on other fuels, is significantly low. At the prevailing price of fuel in Delhi, operational cost of CNG vehicles is 68% lower than petrol and 36% lower than diesel.
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Company Background
IGL is in the retail gas distribution business supplying compressed natural gas (CNG) to the transport sector and piped natural gas (PNG) to domestic and commercial sectors in the National Capital Territory (NCT) region of Delhi.IGL was incorporated in December 1998 as a joint venture (JV) between two oil & gas majors –GAIL and BPCL, each holding 22.5% stake and government of NCT of Delhi (5% stake) to implement the city gas distribution (CGD) project in NCT. IGL has 241 CNG stations in Delhi and NCR as on FY10. IGL is now expanding into NCR cities of Noida, Greater Noida, Ghaziabad and Sonipat and plans to cover whole Delhi by end of CY 2011.
IGL
CHG PNG
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DOMESTIC INDUSTRIAL/ COMMERCIAL
Sourcing of Gas: Gail the Sole Supplier
On the gas- sourcing front, this is an important aspect of the CGD business, the gas allocation by MoPNG to IGL for the different geographical areas as follows
SUPPLIERS REGION CONTRACTED SUPPLY (MMSCMD)
IGL NCT OF DELHI 2.0
IGL NOIDA, GREATER NOIDA 0.2
IGI FERIDABAD 0.25
IGI GURGAON 0.25
Based on the ever growing demand of CNG particularly in Delhi sector, IGL has to purchase the gas at Market price to bridge the gap. This is based on the GSA signed between Reliance and Bharat Petroleum Corporation Ltd of below mentioned quantity
SUPPLIERS REGION CONTRACTED SUPPLY (MMSCMD)
RIL - 0.15
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BPCL - 0.24
As the gas at market in Rupees terms, IGL is insulated from exchange risks. The gas is currently available at subsidized prices, which is called APM process.
IGL’S GAS SOURCE PIPELINE STRUCTURE
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CNG
CNG stands for compressed natural gas it is gaseous fuel and is a mixture of hydrocarbons
mainly methane. For use in automobile as fuel, it is compressed to a pressure of 200-250
kg/cm 2 to enhance the vehicle on – board storage capacity.
CNG is inheritance the safety fuel by virtues of its properties that give it a higher self ignition
temperature of 540? C (which is much higher than LPG, petrol and diesel) . being lighter than
air,CNG rapidly dispenses in the atmosphere in case of leaking. CNG has a narrow range of
flammable limit. (5 % to 15% by volume)
CNG conversion is easy
Any spark ignited engine can be converted to CNG by installing a conversion kit. For
convenience, the cars can shift from petrol to CNG and vice versa at the flick of a button. The
cost of conversation of one car to CNG depends on its type (Carburetor/MPFI), kit make and
cylinder of conversion of one car to CNG kit varies between Rs.35,000/- to Rs 55,000/- CNG
kits should be fitted in cars only at workshops authorized by Transport Department of
respective State governments.
Once the CNG retro fitment is done, the same has to be endorsed in the Registration Certificate of the car.
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No maintenance issues
There’s no contamination or dilution of crankcase oil, giving a new lease of life to the engine.
It does not foul spark plugs due to the absence of lead content, thereby enhancing their life. As CNG enters the engine in forms of a gas and not as a spray or mist like other fuels, it results in reduced engine wear and tear.
PNG
One of the safest fuels.
Highly economical in tangible as well as intangible terms.
Substantially saves time, effort and kitchen storage space.
No time wasted in booked, receiving and installing a new cylinder after the present one goes empty.
Great saving on PNG
Using PNG works out cheaper compared to alternative fuels available, on energy equivalent basis.
There is no storage, spillage or performance
Convenient pay- after- use in bi- monthly bill cycle.
Immeasurable intangible benefits of PNG.
Safety in PNG
Due to extremely narrow flammability range ,PNG is not inherently explosive in nature.
Lighter than air
Disperses fast on leakage
Automatic tripping of regulators in case of low or high pressure levels provided inbuilt safety features in PNG installation.
CUSTOMER SUPPORT IN PNG
IGL operates twelve control rooms in Delhi i.e., Kaka Nagar,Okhla More ,CGO complex, Sarojini Nagar , R.K.Puram, Patparganj, Rohini , Mayur Vihar I, Pushp Vihar,Nelson Mandela Marg and Dilshad Garden.
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The control room works 24 X 7 tp provide necessary service support to customers.
Dedications round the clock customer help lines are available for total customer support.
Customer care number is 011-45195959
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CHAPTER 3
ANALYSIS OF CNG SALES, STATIONS AND PRICE
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ANALYSIS OF COST RECOVERY OF CNG KIT
The ruling of the Hon’ble Supreme Court in July 1998, which directed conversation of the city’s entire bus fleet to CNG, primarily resulted in increasing in CNG vehicles in Delhi in the past decade. Apart from buses, all pre- 1990 auto- rickshaws and taxis were to be converted with CNG kits. The Government of NCT of Delhi in July 2009 has directed all Light Commercial Vehicles (LCVs) operating in Delhi to convert to CNG mode. This would increase of CNG variant models by car manufacturers would also increase the number of CNG vehicles, going forward.
BUS 4 WHEELER 3 WHEELERCOST OF KIT (Rs)(A)
180,000 30,000 20,000
CNG PRICE PER Kg(Rs) 29.03 29.03 29.03MILEAGE PAR Kg(Rs) 3.1 14 32COST PER km(Rs)(a)
9.36 2.07 0.91
OTHER FUEL PRICE (BUS-DIESEL, 4-3 WHEELER- PETROL)(Rs/liter)
37.75 63.39 63.39
MILEAGE 2.8 11 25OTHER FUEL COST PER km(Rs)(b)
13.48 5.76 2.54
SAVING PER km(Rs)(c=b-a)
4.12 3.69 1.63
DAILY AVERAGE TRAVEL (km)
80 50 60
YEARLY TRAVEL ASSUMING 300 DAYS OF TRAVEL (km)(d)
24,000 15,000 18,000
YEARLY SAVING (Rs)(e=c*d)
98,880 55,350 29,340
PAYBACK PERIOD (Months)(f=a/e)
21.8 6.5 8.1
BREAKEVEN (in km)(g=a/c)
43,689 8,130 2,469
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There are approximately 3.0 mm cars on the NCT and NCR regions, combined together.
Assuming 50 % of these cars are in the NCT regions, the target market would comprise 1.5 mm cars. Management has started that only petrol cars can be expected to convert to CNG. Thus, assuming 70 % of the total cars use petrol as the fuel, the target market would be 1.05 mm car. Assuming 90 % of these cars are small and mid size cars, the effective target market would be at least 0.9 mm car, which are potential consumers of CNG. We believe superior economics of CNG over petrol provides significant growth opportunity in the segment. And hence, there exists huge opportunity for CNG segment.
CNG SALES
CNG sales in scmd 3,26,00,000.00 3,24,00,000.00 3,22,00,000.00 3,20,00,000.00 3,18,00,000.00 3,16,00.000.00
3,14,00.000.00
3,12,00,000.00 3,10,00,000.00 3,08,00,000.00
Jan11 Feb11 Mar11
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TYPES OF CNG STATIONS
Mother Station: A Mother Station is connected to a natural gas pipeline, which ensures supply at the station at a pressure of around 19-22 kg/cm2g. Stations are equipped with compressor(s) of varying capacities (1,150/1200 SCM per hour), dispensers, stationary cascades etc. A compressor compresses gas to a pressure of 250 kg /cm2g and it is dispensed to various kinds of vehicles at maximum pressure of 250 kg /cm2g. These compressors are either gas engine or electric motor driven. The Mother Station also feeds the daughter / daughter booster station by supplying CNG through mobile cascades of 2,200 water liter capacities each.
Usually, A Mother Station has One /Two filling points to fill mobile cascades.
Online Station: This station functions on similar lines to a Mother Station except that it does not have the mobile cascade filling facility, which helps feed daughter / daughter booster station.
Daughter Station: This station receives gas through LCV mounted cascades (a bank of cylinders) of 2,200 water liter capacity from the Mother Station as they not connected to the main pipeline. At daughter station, CNG is dispensed to vehicles on the pressure equilibrium principle.
Daughter Booster Station: The only difference between daughter booster station and daughter station is that a small compressor/booster is installed in between the mobile cascade and dispenser. Function of the booster is to draw the natural gas from the mobile cascades right from 180 kg /cm2g to as low as 30 kg / cm2g and compresses at a pressure of 200 kg/cm2g.
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In the above figure, there are no mobile cascades at daughter station, the trucks fill the cylinders from mobile cascades at mother station and bring to the daughter station and daughter booster station.
CNG SUPPLY INFRASTRUCTURE
IGL commenced supplying gas from a network of 9 CNG stations, which has increased the total CNG supply stations to 241 stations as on 31st March 2010. IGL receives gas through its own network of steel pipeline from GAIL at various points in NCT of Delhi, which is then transported to its own CNG stations (Mother /Online). Other station daughter / daughter booster receives gas from Mother Station through mobile cascades , as they are not connected to the pipeline .
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Mother Station:-145
Online Station:-48
Daughter Booster:-46Daughter Station:-2Total:-241
IGL consistently increased the number of CNG stations from 181 in FY09 to 241 stations by end of FY10 and it plans to further strengthen its CNG stations count to 281by end of the FY11. To develop the CNG infrastructure, IGL has already incurred a capital expenditure of 2,750 million in the current fiscal year and is expected to incur 550 million more on developing the CNG infrastructure by the end of this financial year.
Strengths:
The company has been given marketing exclusivity in NCT of Delhi for three years w.e.f January 1, 2009
As per the Petroleum and Natural Gas Regulatory Board (PNGRB) regulations. IGL has network exclusivity up to December 2025 in the NCT area.
Supply is secured as the company has been allocated 2.7 mmscmd of regular supply
IGL has continuously adopted the latest technology as a result of which the quality of its products has also improved.
Lower debt in the books along with healthy return ratios gives confidence in the company’s ability to raise debt for future expansion.
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Opportunities:
CNG is replacing traditional fuels like petrol & diesel.CNG in about 62% cheaper than petrol and about 40% cheaper than diesel.
Introduction of Radio Taxis and high capacity buses running on CNG in Delhi along with increase in number of CNG variant models by car manufactures presents a significant opportunity for the company
Shift towards usage of PNG by industrial and commercial segment.
Weakness:
Future expansion activities would be dependent on ability to secure additional gas supplies.
Threats:
Competition from other players is possible after December 2011 as the company’s marketing exclusivity is valid till December 2011 only.
Alternation modes of transport like metro rail poses a threat .
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Robust Demand for CNG in Delhi and NCR
There are currently over 4 mm-registered vehicles in Delhi. Another 1 mn vehicle enters the city from NCR on a daily basis. The population of CNG driven government buses grew over last 3 years as government of Delhi is adding new buses every year. The demand from private cars and taxis is growing at more than 20 % because of the new conversions and registrations of vehicles. Currently, almost 5,000 cars are being converted per month to run on CNG and we expect this car conversion rate to increase as petrol and diesel prices continue to rise further due to rising crude prices.
With leading car manufactures in the country planning to launch CNG based car variants in the near future; the demand for CNG would increase as well.
Maruti- Alto, Eeco, SX4, Wagon R, Zen Estilo
Fiat-Punto (2011)
Toyota-Innova, Corolla, Corolla Altis
Mahindra-Logan
Chevrolet- Spark,Beat
Tata-Indigo GLS, Indica
Hyundai-Accent,Santro
CNG as fuel remains by far the cheapest compared to petrol and diesel. Though IGL has significant raised prices of CNG in FY11 on account of the revision in the prices of APM gas, the economics of using CNG still remains favorable.
PETROL DIESEL CNGCost (petrol=Rs per liter, CNG =Rs per Kg
63.39 37.75 29.30
Mileage (per km) 11 11 14Cost per km 5.76 3.43 2.09Saving percentage 63.71% 39.06% -
Backed by the robust demand for CNG, we expect CNG volumes to increase from 695 MMSCM in FY10 to 1100 MMSCM in FY13. Revenue from CNG segment is expected to increase from 9,345 million in FY 10 to 25,296 million in FY13.
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CNG PRICE HIKE IN DELHI (Rs/Kg)
IGL has demonstrated its ability to pass on the escalation in cost to its customer. Recently Government has raised the APM gas prices from $ 1.8 to $ 4.2/mmbtu.IGL has implemented the following prices hicks in the recent past. We expect IGL to increase the CNG prices further by Rs4-5 in FY12E.
Month Old price New price ReasonMarch-10 21.20 21.90 Due to rise in input costsJune-10 21.90 27.50 Increase in APM prices from
$1.79 to $ 4.2 MMBTUOct-10 27.50 27.75 In light of exchange volatilityJan-11 27.75 29.00 To pass on the incremental price
of high cost R-LNGMay-11 29.00 29.30 To pass on the incremental price
of high cost R-LNG
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CHAPTER 4
PROJECT DEFINITION
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PROJECT DEFINITION
Understanding what are the barriers in the ownership of CNG PRIVATE CARS and what are the reasons that PETROL CAR OWNERS are not willing to convert their cars to CNG. The parameters taken into consideration are:
Vehicle Performance (like mileage , pickup ,reliability, maintenance cost)
Safety
Infrastructure
Conversion costs
Availability of CNG stations
Waiting Time
Engine
Accuracy of billing and modes of payment (like credit card, debit card)
Facilities at a CNG station (like air filling facility ,toilet, drinking water)
Research Design
Exploratory Research
Research Methodology
The first step in any research is to decide upon the target population. The target populations for this study are the CNG private car owners and PETROL/DIESEL private car owners. The CNG outlets in Delhi are spread across five zones- North, South, East, West and Central. There are two types of outlets IGL COCO (company own company operated) and OMC (oil Marketing companies) RO. The selection of outlets was done based on the convenience to assess the petrol pumps in the nearby vicinity to carry out survey on NON-BUYERS OF CNG as well.
A structured questionnaire was used to collect data. Two separate sets of questionnaires were used for CNG CARS and PETROL /DIESEL CARS. Refer Annexure-1 and Annexure-2 for the sample questionnaires.
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Scope of the Project
To understand the barriers faced by the customers in the ownership of CNG cars.
Sampling Element
The most common sampling element in marketing research is a human respondent who are consumers of CNG cars and consumers of PETROL/DIESEL Cars.
Sampling Unit
SELECTION OF OUTLETS
NORTH DELHI ROHINI SECTOR 19CENTRAL DELHI SHANTIPATH FOR CNG CARS SURVEYCENTRAL DELHI SAVITA FILLING STATION, SARAI
KALE KHAN FOR PETROL CARS SURVEY 12
SOUTH DELHI R.K.PURAM SECTOR 12EAST DELHI PATPARGUNJWEST DELHI DWARAKA SECTOR 9
Sample Size
ZONES CNG PRIVATE CARS PETROL/DIESEL PRIVATE CARS
NORTH DELHI 23 20CENTRAL DELHI 20 20SOUTH DELHI 20 20EAST DELHI 21 20WEST DELHI 11 19TOTAL 95 99OVERALL 199
Source of Information
Primary Data/ Communication Approach
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Research Method for Collecting Data
Survey MethodSampling TechniqueSimple Random Sampling /Probability Sampling
Sampling Tools for Collecting Information Questionnaire
Questionnaire Type
Combined of open ended questions & close ended questions (Refer Appendix 1 & Appendix 2)
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DATA ANALYSIS
Simple Tabulation
CNG Usage by the Customers
Among the CNG Customers, 25% customers have used CNG for 1-2 years.
1. How many people who own a CNG car have installed a CNG kit or bought already existing CNG fitted car?
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Out of 95 respondents who own CNG car, 82 have installed a CNG kit while 13 have bought already existing CNG fitted car
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2. Are the buyers and non- buyers of CNG concerned about the pollution?
60% of the total 95 respondents own a CNG car because of its eco friendliness and cost effectiveness while 31% own a CNG car because of its cost effectiveness and are not concerned about the pollution in their city.
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Among the non- buyers of CNG cars, out of 99 respondents, 91 are concerned about the pollution in the city.
3. Vehicle performance in terms of mileage, pickup, reliability and maintenance cost.
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Among the buyers of CNG 53% of the customers have said that their mileage have increased after installing CNG in their cars.
Among the non-buyer of CNG,43% of the PETROL car owners have said that their mileage will increase if they install CNG and 10% doesn’t have any idea about mileage
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Among the buyers of CNG 64% of the customers have said that their pick-up reduces after installing CNG in their cars.
Among the non-buyers of CNG, 66% of the PETROL car owners have said that their pick up will get reduced if they install CNG and 10% doesn’t have any idea about pick up
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Among the buyer of CNG, 75% of the customers have said that their reliability has remained same after installing CNG in their cars.
Among the non-buyers of CNG, 55% of the PETROL car owners have said that their reliability will remain same if they install CNG and 11 % doesn’t have any idea about reliability of their car.
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Among the buyers of CNG,49% of the customers have said that their maintenance cost has remained same after installing CNG in their cars.
Among the non-buyers of CNG, only 39% of the PETROL car owners have said that their maintenance cost will remain same if they install CNG while 38% say that their cost increases and 10% doesn’t have any idea about maintenance cost.
4. Problems with CNG car
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Among the CNG car owners, 51% say that they face problems temporarily in their cars after installing CNG while 41% say that they never face problems.
5. CNG car owner fill CNG
Among the CNG car owner,52% say that they fill CNG alternate days while 44% fill CNG daily
6. Availability of CNG stations
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Among the CNG car owners, 53% say that the availability of CNG stations is average while 26% say that there are less CNG stations
Among the PETROL car owners, 62% say that the availability of CNG stations is average while 35% say that there is less CNG stations
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7. Average waiting time
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Among the CNG car owners, more than 20% prefer a CNG station because of less waiting time while 43% prefer a CNG stations because of location.
Among the PETROL car owners 66% say that waiting time is high at CNG station
8. Accuracy of billing and payment
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Among the CNG car owners, 48% find the billing and cash payment at a CNG station as average while 16% find the poor.
Among the PETROL car owners, 52% find the billing and payment at a petrol station compared to CNG station as good.
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9. Facilities (Like air filling facility, toilet, drinking water) at a CNG station
Among the CNG owners, 42% feel that the facilities provided at a CNG station are average.
10. Safety in CNG cars
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Among the CNG car owner, 41% feel that the information given for the safety of CNG in their cars is good while 20% feel that it is poor.
Among the PETROL car owners, 47% distrust safety mechanism in CNG cars while 52% do not and 1% doesn’t have any idea.
11. Awareness
Among the PETROL car owners, 99% care aware that CNG is about 62% cheaper than PETROL and about 40% cheaper than DIESEL.
Among the PETROL car owners, 53% are not aware of authorized CNG kit suppliers.
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Among the PETROL car owners, 91% are aware that after installing CNG kit in their car, they can run their car on PETROL and CNG both.
12. CNG as a low quality fuel
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Among the PETROL car owner, 61% consider CNG as a low quality fuel.
13. Conversion costs
Among PETROL car owners, 48% feel that costs to convert to CNG are medium while 33% feel that it is high
14. PETROL car owners visited any CNG station?
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Among the PETROL car owners 60% have visited a CNG station while 40% have not even visited
15. Travelling outside the city
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Among the PETROL car owners, 46% travel outside the city so they don’t own a CNG car.
16. CNG kit installation is a time consuming process?
Among the PETROL car owners, 33 % feel that CNG kit installation is a time consuming process.
17. Engine disruption
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Among the PETROL car owners 54% feel that CNG kit installation will disrupt the engine
18. PETROL acts as lubricant
Among the PETROL car owners,49% feel that PETROL acts as a lubricant and CNG is dry
Which does not provide lubrication to the engine?
19. Future car
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Among the CNG car owners, 61% will buy future car on CNG while 37% will buy on
Petrol/diesel and 2% will buy on Auto LPG.
Among PETROL car owners, 47% say that they will buy a new car on CNG while 17% say may be.
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Among PETROL car owners, 24% want to buy Maruti models on CNG
Among the CNG owners 97% want that new CNG car models should be made available.
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Cross Tabulation
1. Independent Variable – conversion costsDependent Variable – will you use CNG car in future?
Conversation cost determines whether to buy car on CNG or not.Chi-square test is carried out a 90 percent confidence level (0.1 significance level).
Here the significance level is 0.488 which is greater than 0.1, which signifies that there is no associated between the two variables
2. Independent Variable – Safety Dependent Variable – will you use CNG car in future?
Chi-square test is carried out a 90 percent confidence level (0.1significance level).
Here the significance level is 0.603 which is greater than 0.1, which signifies that there is no associated between the two variables.
3. Independent Variable –Engine DisruptionDependent variable – will you use CNG car in future
From the output tables, Chi-square test read a significant level of 0.007 at 90 percent confidence level.
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Hence, the output significance level is less than 0.1. Therefore, there is significant relationship between the two variables.
If contingency is greater than +0.5 then the variables are strongly associated. The contingency value being 0.353 which is less than 0.5, hence the variables are not strongly associated.
The asymmetric lambda value (with will you use CNG car in future dependent) 0.189 means that 18.9% of error is reduced in predicting will you use a CNG car in future when engine disruption is known.
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CHAPTER 5
RESULT OF STUDY
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Results of study
1. People prefer CNG car mostly because of cost effectiveness and eco friendliness.
2. The other main reason would be the CNG station is nearby their house or office which have less waiting time and steady dispensing pressure
3. People who can afford PETROL car feel irritated because of the waiting time at CNG station so they don’t want to convert their car to CNG
4. People who can’t afford PETROL but can afford DIESEL will prefer diesel if PETROL prices goes up.
5. Out of 194 respondents surveyed, 114 respondents will definitely use CNG car in future and
17 may use CNG car. Hence, 121(62.37%) will be the potential CNG customers of IGL in future.
BARRIERS:
The barriers that stop the diesel car owners to convert their cars into CNG area
a.One time conversion costs-if the car runs 50 km daily for 300 days in a year than the payback period is 6.5 months .the more one travels, the payback period reduces.
b.Availability of CNG stations and average waiting time-number of stations are being built in Delhi so that will overcome the average number of CNG stations to more in future. With this, the waiting time also will reduce.
c. Vehicle performance - mileage increases using CNG but pick up reduces.
d. Safety measures –IGL has taken considerable measures to provide safety to their customers.
e. Engine disruption - New CNG car models are being made.
f. Cylinder capacity – The cylinder capacity is 12 kg and CNG is filled to 9 kg which is very less and because of this customers have to fill CNG 3-4 times a day.
g. Luggage keeping – After installing CNG kit, there are no space of luggage keeping at the back of the car.
h. Daily car has to be travelled for 2-3 km on petrol after converting the car to CNG- There is sequential kit which has been designed which switches over to petrol when car needs it and to CNG automatically.
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Limitations of study
As part of this study, I have to try to collect as much data as possible. I have covered only private cars. I have not covered buses, rickshaws etc. and the barriers in the ownership of CNG in this vehicle.
Other limitations would be that I have covered only one IGL outlet in every five zones of Delhi.
Conclusions and Recommendations.
1. Regarding safety, leaflets or hoardings should be put at every CNG stations to increase the awareness of the customers.
2. Regarding facilities, air filling facility, fast foods etc. should be built at CNG stations to fight with high waiting time.
3. Regarding Cylinder capacity, the capacity should be increased if possible from 12 kg to 15 kg of cylinder.
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APPENDIX- 1
CNG SALES OF JAN-11, FEB -11, MARCH -11
JAN MONTH SALESStation Name(Delhi) SalesANAND PARBAT 2,03,891.06BRAB SQUARE 4,80,277.26CBD SHAHADRA 1,428,20.70CGO COMPLEX 8,47,140.47CHHATRASAL STADIUM 3,98,328.56CRRI,MATHURA ROAD 5,66,472.46DHEERPURA-1 3,52,287.55DHEERPURA-11 2,57,251.14DILSHAD GARDEN 5,04,688.68DWARKA 3,54,056.60DWARKA SEC 17 5,78,903.83DWARKA SEC 23 2,60,009.21DWARKA SECTOR XX 5,56,120.66GEETA COLONY 1,88,867.32IFC GHAZIPUR -3 6,21,345.55IFC GHAZIPUR SITE 1 4,71,590.24IFC GHAZIPUR SITE 2 4,99,237.65IGI AIRPORT 83,436.43JAHANGRI PURI 2,18,221.90JAIL ROAD 10,73,639.35JANAKPURI D BLOCK 5,21,708.17JANAKPURI DIST CNTR 5,77,377.06JASOLA 4,09,445.85KAPASHRERA 3,93,148.56LADO SARAI 4,23,288.93LONI ROAD 83,549.35MADAN PUR KHADAR -1 2,91,178.12MADAN PUR KHADAR -11 2,24,623.38MAHIPALPUR 6,08,639.85MANGOLPURI 3,89,662.02MAYAPURI 3,06,545.73MAYUR VIHAR 5,34,130.15METCALFE HOUSE 7,65,421.68NAGLA MACHI 0NANAK PYAU 4,51,899.76
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NAND NAGARI 2,77,542.04NARELA 3,41,239.03NARELA DS11DC 4,69,553.01NEHRU PLACE 3,79,694.58NELSON MANDELA 4,36,770.74NH-24 3,29,682.68NH-8 DEFENCE 3,79,184.00NH-8,RANGPURI 3,535.13OKHLA IND. AREA-1 3,535.13OKHLA MORE 3,12,532.09PASCHIM VIHAR 3,62,176.20PATPARGANJ MEGA 6,28,56.87PEERAGARHI 6,47,454.84PITAM PURA 4,17,017.06PITAMPURA (RANI BAGH) 4,86,056.18PRAGATI MAIDAN 5,83,125.78PUNJABI BAGH 4,21,550.00PUSHPA BHAWAN 2,64,206.82R K PURAM SEC 111 6,20739.60R K PURAM SEC X 5,10,445.25R K PURAM SEC X11 6,22,579.94ROHINI SEC 21 3,54,186.87ROHINI SEC 22- AGGRASEN COLL.
3,04,538.88
ROHINI SEC 22-C.C (Mgf Mall) 56,330.60ROHINI SEC 25 3,52,548.77ROHINI SEC 29 1,65,526.62ROHINI SEC X1X 3,56,690.00ROHINI SECTOR 10 5,47,158.06ROHTAK ROAD 3,39,985.24S G T NGR-1 3,83,552.57S G T NGR-11 3,50,553.58SAN MARTIN 0SARAI KALE KHAN-1 3,51,131.27SARAI KALE KHAN-11 5,67,670.80SARITA VIHAR 5,06,377.91SAROJINI NAGAR 3,53,007.65SHAKURBASTI DIESEL SHED,NR
0
SHAKURPUR 4,36,673.05SHAKURPUR 2 2,31,144.22SHANTIPATH 2,13,144.22SURAJ KUND 57,397.35
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UDYAN MARG 2,61,144.26
FEB MONTH SALESStation Name(Delhi) SalesANAND PARBAT 2,01,600.06BRAB SQUARE 4,64,607.26CBD SHAHADRA 1,29,738.92CGO COMPLEX 8,45,069.10CHHATRASAL STADIUM 4,04,536.56CRRI,MATHURA ROAD 5,42,585.88DHEERPURA-1 3,45,608.10DHEERPURA-11 2,54,936.42DILSHAD GARDEN 5,52,679.65DWARKA 3,58,929.81DWARKA SEC 17 5,27,179.19DWARKA SEC 23 2,63,403.87DWARKA SECTOR XX 5,45,773.82GEETA COLONY 1,55,941.64IFC GHAZIPUR -3 6,01,730.00IFC GHAZIPUR SITE 1 4,17,782.71IFC GHAZIPUR SITE 2 4,41,979.62IGI AIRPORT 72,765.63JAHANGRI PURI 2,01,171.40JAIL ROAD 10,42,563.41JANAKPURI D BLOCK 4,86,601.22JANAKPURI DIST CNTR 5,24,492.26JASOLA 4,19,665.28KAPASHRERA 3,70,552.18LADO SARAI 4,07,518.03LONI ROAD 93,435.35MADAN PUR KHADAR -1 2,98,195.01MADAN PUR KHADAR -11 2,17,941.23MAHIPALPUR 5,88,411.90MANGOLPURI 3,89,662.02MAYAPURI 3,00,991.07MAYUR VIHAR 4,95,985.31METCALFE HOUSE 6,52,070.11
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NAGLA MACHI 0NANAK PYAU 4,53,592.02NAND NAGARI 2,38,234.49NARELA 3,38,030.02NARELA DS11DC 4,30,518.66NEHRU PLACE 3,60,895.35NELSON MANDELA 4,38,099.51NH-24 3,16,842.52NH-8 DEFENCE 3,70,196.69NH-8,RANGPURI 3,100.32OKHLA IND. AREA-1 3,20,918.36OKHLA MORE 3,30,416.44PASCHIM VIHAR 3,47,538.29PATPARGANJ MEGA 7,38,140.07PEERAGARHI 6,04,505.52PITAM PURA 3,97,544.25PITAMPURA (RANI BAGH) 4,80,725.12PRAGATI MAIDAN 5,84,277.86PUNJABI BAGH 3,90,961.62PUSHPA BHAWAN 3,07,589.31R K PURAM SEC 111 5,97,241.86R K PURAM SEC X 5,15,419.83R K PURAM SEC X11 5,66,747.15ROHINI MEGA 4,15,374.81ROHINI SEC 21 2,98,053.14ROHINI SEC 22- AGGRASEN COLL.
2,57,847.66
ROHINI SEC 22-C.C (Mgf Mall) 1,52,109.52ROHINI SEC 25 3,54,109.93ROHINI SEC 29 1,70,578.11ROHINI SEC X1X 3,38,488.07ROHINI SECTOR 10 5,51,552.77ROHTAK ROAD 3,44,320.44S G T NGR-1 3,91,300.59S G T NGR-11 3,22,709.1SAN MARTIN 0SARAI KALE KHAN-1 3,63,163.02SARAI KALE KHAN-11 5,51,203.53SARITA VIHAR 5,19,072.69SAROJINI NAGAR 3,63,228.50SHAKURBASTI DIESEL SHED,NR
582.5
SHAKURPUR 3,93,363.58
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SHAKURPUR 2 2,26,172.81SHANTIPATH 2,40,995.28SURAJ KUND 66,637.65UDYAN MARG 2,84,681.37
MARCH SALESStation Name(Delhi) SalesANAND PARBAT 1,99,952.06BRAB SQUARE 4,51,331.06CBD SHAHADRA 1,37,431.97CGO COMPLEX 8,85,974.38CHHATRASAL STADIUM 3,73,498.28CRRI,MATHURA ROAD 4,72,237.24DHEERPURA-1 3,50,248.30DHEERPURA-11 2,17,607.46DILSHAD GARDEN 6,10,571.64DWARKA 3,48,194.34DWARKA SEC 17 4,93,402.26DWARKA SEC 23 2,33,695.87DWARKA SECTOR XX 5,21,532.41GEETA COLONY 1,75,386.93IFC GHAZIPUR -3 6,45,841.96IFC GHAZIPUR SITE 1 3,89,170.83IFC GHAZIPUR SITE 2 4,81,417.61IGI AIRPORT 88,375.77JAHANGRI PURI 2,09,532.70JAIL ROAD 10,33,002.43JANAKPURI D BLOCK 4,27,375.36JANAKPURI DIST CNTR 5,16,849.33JASOLA 4,30,030.21KAPASHRERA 3,81,638.99LADO SARAI 4,22,728.99LONI ROAD 1,10,002.90MADAN PUR KHADAR -1 2,84,062.18MADAN PUR KHADAR -11 2,27,353.75MAHIPALPUR 5,57,670.06
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MANGOLPURI 3,77,253.11MAYAPURI 2,93,414.05MAYUR VIHAR 5,11,653.32METCALFE HOUSE 7,19,935.97NAGLA MACHI 0NANAK PYAU 4,46,058.56NAND NAGARI 2,61,568.39NARELA 3,38,030.02NARELA DS11DC 4,14,564.64NEHRU PLACE 3,70,037.84NELSON MANDELA 4,10,142.20NH-24 3,27,897.79NH-8 DEFENCE 3,74,086.26NH-8,RANGPURI 3,023.77OKHLA IND. AREA-1 3,25,122.39OKHLA MORE 3,29,248.09PASCHIM VIHAR 3,42,063.65PATPARGANJ MEGA 8,00,816.00PEERAGARHI 5,65,641.76PITAM PURA 4,09,715.32PITAMPURA (RANI BAGH) 4,99,494.95PRAGATI MAIDAN 5,72,428.33PUNJABI BAGH 4,18,937.58PUSHPA BHAWAN 3,25,822.65R K PURAM SEC 111 5,53,724.27R K PURAM SEC X 5,14,520.10R K PURAM SEC X11 5,23,409.49ROHINI MEGA 3,73,042.24ROHINI SEC 21 2,66,369.51ROHINI SEC 22- AGGRASEN COLL.
2,22,292.56
ROHINI SEC 22-C.C (Mgf Mall) 1,95,299.09ROHINI SEC 25 3,50,079.05ROHINI SEC 29 1,31,696.94ROHINI SEC X1X 3,48,217.86ROHINI SECTOR 10 5,27,205.04ROHTAK ROAD 3,39,468.48S G T NGR-1 3,50,547.39S G T NGR-11 2,89,149.38SAN MARTIN 0SARAI KALE KHAN-1 3,61,261.71SARAI KALE KHAN-11 5,37,921.75SARITA VIHAR 5,25,227.80
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SAROJINI NAGAR 3,62,678.29SHAKURBASTI DIESEL SHED,NR
0
SHAKURPUR 3,61,992.00SHAKURPUR 2 2,27,180.94SHANTIPATH 2,46,675.82SURAJ KUND 68,144.83UDYAN MARG 2,63,394.74
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APPENDIX -2
ALL CNG STATIONS DETAILS
BPCL 35
BPCL GHAZIABAD 2MOHAN NAGAR SERVICE CENTERSHARMA FILLING STATION
IOCL 23
IOCL NOIDA 2PADAM PETROLEUMTYAGI BROTHERS FILLING STATION
HPCL 26
HPCL NOIDA 2BHAGWATI S SHP CENTER 62
IOCL-IBP 8TOTAL OMC PARTY 98DTC 32DTC NOIDA 1UPSRTC 1TOTAL DTC 34
NOIDA CREDIT PARTY
JP INTERNATIONAL IILM ACADEMYORIENT TRANSPORT,NOIDASTEP BY STEP SHRIRAM MILLENNIUMSITA ENRAGY
TOTAL CREDIT PARTY 149IGI STATION 83
SL NO LADO SARAI 1 DTC MOTHER S N DEPOT2 DTC MOTHER VASANT VIHAR DEPOT3 DTC MOTHER AMBEDKAR NAGAR DTC4 DTC MOTHER KALKAJI DEPOT5 IGL MOTHER R K PURAM SEC X6 IGL MOTHER R K PURAM SEC III7 IGL MOTHER SAROJANI NAGAR8 IGL MOTHER NH 8 RANGPURI
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9 IGL MOTHER MAHIPALPUR10 IGL MOTHER NELSON MENDELA11 IGL MOTHER NH 8 DEFENCE12 IGL MOTHER LADO SARAI13 IGL MOTHER PUSHPA BHAWAN14 IGL MOTHER SHANTHI PATH15 IGL MOTHER SAN MARTIN16 IGL MOTHER IGI AIRPORT17 IGL MOTHER R K PURAM SEC XII18 IGL MOTHER NEHRU PLACE19 IGL MOTHER OKHLA INDUSTRIES AREA PH I20 IGL MOTHER SURAJ KUND
SL NO SARAI KALE KHAN1 DTC MOTHER OKHLA I DEPOT2 DTC MOTHER OKHLA II DEPORT3 DTC MOTHER I P DEPOT4 DTC MOTHER NOIDA DEPOT5 UPSRTC MOTHER UPSRTC6 DTC MOTHER NAGLAMANCHI7 IGL MOTHER NOIDA SEC 538 IGL MOTHER KASNA (OPP HONDA SIEL)9 IGL MOTHER SURAJPUR (OPP DEWOOD
MOTERS)10 IGL MOTHER PRAGATHI MAIDAN11 IGL MOTHER SARAI KALE KHAN I12 IGL MOTHER OKHIL MORH13 IGL MOTHER C R R I14 IGL MOTHER SARITA VIHAR15 IGL MOTHER MADANPUR KHADDAR I16 IGL MOTHER C G O COMPLEX17 IGL MOTHER JASOLA18 IGL MOTHER UDYAN MARG19 IGL MOTHER MADANPUR KHADDAR II20 IGL MOTHER SARAI KALE KHAN II21 IGL MOTHER GREATER NOIDA BETA II22 IGL MELLENIUM PARK 223 IGL MILLENNIUM PARL 124 IGL RAJ GHAT
SL NO CBD1 DTC MOTHER PATPARGANJ DEPOT2 DTC MOTHER NAND NAGARI DEPOT3 DTC MOTHER E V N DEPOT
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4 DTC DILSHAD GARDER DEPOT5 DTC MOTHER DILSAD GARDEN6 IGL MOTHER PATPARGANJ MEGA7 IGL MOTHER I F C GAZIPUR I8 IGL MOTHER IFC GAZIPUR II9 IGL MOTHER MAYOR NAGARI10 IGL MOTHER NAND NAGARI11 IGL MOTHER LONI ROAD12 IGL MOTHER C B D SHAHADAR13 IGL MOTHER NH 24 GAZIPUR14 IGL DOUGHTER
BOOSTERGEETHA COLONGY
15 IGL VAISHALI16 IGL I F C GAZIPUR III17 DTC SEEMAPURI DEPOT
SL NO DHEERPUR1 DTC MOTHER B B M I DEPOT2 DTC MOTHER B B M II DEPOT3 DTC MOTHER G T K DEPOT4 DTC MOTHER ROHINI II DEPOT5 IGL MOTHER DHEERPUR I6 IGL MOTHER S G T N PH 17 IGL MOTHER S G T N PH II8 IGL MOTHER NARELA9 IGL MOTHER CHHATRASAL STADIUM10 IGL MOTHER ROHNI SEC XIX11 IGL MOTHER JAHANGIRPURI12 IGL MOTHER ROHINI DEPOT13 IGL MOTHER METCALFE HOUSE14 IGL MOTHER DHEERPUR II15 IGL MOTHER ROHINI SEC 10 16 IGL MOTHER NARELA DSIIDC17 IGL MOTHER NARELA DTC
SL NO SHAKUPUR1 DTC MOTHER WAZIRPUR I DEPOT2 DTC MOTHER WAZIRPUR II DEPOT3 DTC MOTHER PEERAGARHI DEPOT4 DTC MOTHER NANGLOI DEPOT5 DTC MOTHER ROHINI III DEPOT
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6 DTC MOTHER NANAK PYAU7 DTC MOTHER SHAKURPUR I8 DTC MOTHER SHAKURPUR II9 DTC MOTHER MANGOLPURI10 DTC MOTHER PEERAGARHI11 DTC MOTHER ROHTAK ROAD12 DTC MOTHER PITAMPURA13 DTC MOTHER ROHINI MEGA14 DTC RAILWAYS SHAKURPUR DIESEL SHED15 DTC DAUGHTER
BOOSTERANAND PARBAT
16 DTC NEW PITAM PURA17 IGL ROHINI 2118 IGL ROHINI 2 519 IGL ROHINI 2920 IGL ROHINI 2221 IGL ROHINI 22 MGFSL NO JAIL ROAD1 DTC MOTHER MAYAPURI DEPOT2 DTC MOTHER HARI NAGAR I DEPOT3 DTC MOTHER HARI NAGAR II DEPOT4 DTC MOTHER KESHAVPUR DTC5 DTC MOTHER PUNJABI BAGH6 DTC MOTHER JAIL ROAD7 DTC MOTHER JANAKPURI D BLOCK8 DTC MOTHER PASCHIM VIHAR9 DTC MOTHER JANAKPURI D C10 DTC MOTHER DWARKA SEC XX11 DTC MOTHER KAPASHERA12 DTC MOTHER MAYAPURI13 DTC MOTHER BRAR SQUARE14 DTC MOTHER DWARKA SEC IX15 DTC DWARKA DTC SEC 0816 DTC DWARKA DTC SEC 0217 IGL DWARKA SEC 2318 IGL DWARKA 17
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APPENDIX-3
QUESTIONNAIRE FOR CNG CARS
Dear customer,
We are highly obliged that you have taken some moments out of your precious time to provide your invariable responses.
……………………………………………………………………………………………………………
Name:__________________________________ Car Model :________________________________
Contact Number: ____________________________ Vehicle Number: ________________________
Time period of usage of CNG in your:______________________ (Months/Years)
…………………………………………………………………………………………………………
20. a. installed a CNG kit b. Bought already existing CNG fitted car
21. You own a CNG car because of its
a. Eco- friendless
b. Cost effectiveness
c. Eco- friendliness and Cost effectiveness
d. Everybody I know had a CNG so o too purchased
e. Warranty that was given on the CNG kit.
f. Warranty that was provided by the car company
g. Your reasons_____________________________________________________________________
__________________________________________________________________________________
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After installing CNG, you found any difference in terms of
SL NO VEHICLE PERFORMANCE3 Mileage Reduced Same Increased4 Pick Up Reduced Same Increased5 Reliability Reduced Same Increased 6 Overall Maintenance cost Reduced Same increased
7. You face problems with CNG car
a. Frequently b.Temporary c.Never
8. You fill CNG
a. Daily b. Alternate day’s c. Weekly d. monthly
9. Availability of CNG stations
a. Good b.Average c.Satisfactory
10. for refueling you prefer particulars fueling stations because of its
a. Location
b.customer friendly behavior
c.less waiting time
d. steady dispensing pressure the outlet
e. your preference___________________________________________________________________
__________________________________________________________________________________
11. Reading accuracy of billing and acceptance of different modes (like credit card, debit card, etc.) are
a. poor b. average c.Good
12. Information provided about the safety usage of fuel is
a. Poor b.average c.good
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d. your opinions to improve safety measures(if any)________________________________________
__________________________________________________________________________________
13. Facilities (like air filling facility, toilet, and drinking water) provided at a CNG station are
a. poor b. average c. good
14. will you prefer to buy a new car
a. on CNG b. On petrol/Diesel c. Auto LPG
15. Do you feel that more CNG car models need to be made available? Yes/No
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APPENDIX-4
QUESTIONNAIRE
Dear customer,
We are highly obliged that you have taken some moments out of you precious time to provide your invaluable responses.
……………………………………………………………………………………………………………
Name:__________________________ Car Name/Model:________________________________
Contact Number:__________________ Vehicle Number_________________________________
……………………………………………………………………………………………………………
22. Are you concerned about the increasing level of pollution in your city ? Yes/No
23.Are you aware that CNG is about 62% cheaper than PETROL and about 40% cheaper than DIESEL? Yes/No
24. You consider CNG as a low quality fuel? Yes/No
25. Cost of converting your car to CNG car are
a. High b. Medium c.More
26. Have you visited any CNG station? Yes/No
27. Avilability of CNG stations in your city are
a. Less b. Average c. More
28. Due to non-availability of CNG stations outside your city, you don’t own a CNG car? Yes/No
29. Avegarge waiting time at a CNG station compared to PETROL/DIESEL is
a. High b. Medium c. Low d. don’t know
30. Do you feel that mode of payment at a PETROL/DIESEL outlet compared to CNG station are
a. Poor b. Average c. Good d. excellent e. don’t know
31. Are you aware of authorized CNG kit suppliers? Yes/No
32. you feel that CNG kit installation in your car is a time consuming process? Yes/No
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33. Do you destruct safety mechanism in a CNG car? Yes/No
Using CNG in your car will affect your vehicle performance in terms of (if you don’t feel anything below… leave the question unanswered)
VEHICLE PERFORMANCE
13Mileage
Reduces Same Increases
14 Pick Up Reduces Same Increases
15 Reliability Reduces Same Increases
16 Overall Maintenance Cost Reduces Same Increases
17. You feel that CNG kit installation will disrupt your engine? Yes/No
18. You feel that Petrol acts as a lubricant and CNG is dry which does not provide lubrication to
The engine? Yes/No
19. Are you aware that after installing CNG kit in your car, you can run your car on DIESEL and
CNG both? Yes/No
20. Will you use a CNG car in future? Yes/No
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21. Preferred CNG car (If u like Hyundai tick mark on Santro/Accent)
Maruti
Models
Fiat
Models
Toyota
Models
Mahindra
Models
Chevrolet
Models
Tata
Models
Hyundai
Models
Alto Punto In nova Logan Spark Indigo GLS Accent
Eeco Corolla Beat Indica Santro
SX4 Corolla Altis
Wagon R
Zen Estilo
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REFERENCES
1.10th Annual Report 2008-2009 of IGL, New Delhi. Retrieved from www.iglonline.net
2. 11th Annual Report 2009-2010 of IGL, New Delhi. Retrieved from www.iglonline.net
3. Report on 11TH Annual General Meeting on IGL’s performance by Chairman retrieved from www.iglonline.net dated 30 Aug 2010
4. Infraline Energy report on IGL.
5. ACMIIL Report on CGD and IGL dated 28 Mar 2011.
6. Challengers in Implementing CGD Network by Mr. Rajesh Vedvyas.
7. PNGRB act and guidelines retrieved from IGL website.
8. Gas Scenario of India from PNGRB website.
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REVIEW OF LITERATURE
Natural Gas
Natural gas related projects and additional gas availability are expected to attract attention of private and foreign companies to support development of infrastructural facilities such as LNG terminals, laying of pipelines, installation of compressor stations, etc.
Natural Gas supply scenario is slated to improve with development of KG basin gas production facility and enlargement of LNG re-gasification capacity. This would lead to development of CNG and piped natural gas network. GAIL is planning to set up cross-country grid of natural gas pipelines.
India is endowed with vast reserves of coal of around 200 billion tones and 24 billion tones of lignite (Source: India Hydrocarbon Vision 2025).Therefore, Indian companies are exploring the feasibility of generating natural gas from Underground Coal Gasification (UCG). Recently, ONGC has signed a MoU with Skochinsky Institute of Mining (SIM), Russia which has expertise in the field of UCG.GAIL (India) Ltd. Has also signed an MoU with Ergo (Canada based company) for exploitation of UCG potential.
City gas projects in the states of Uttar Pradesh, Andhra Pradesh and Gujarat are already underway. GAIL plans to undertake city gas distribution in 22 cities spread across Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Tripura, Karnataka, Maharashtra, Tamil Nadu.The Estimated investment for these 22 cities will be around US42.53 billion. There is opportunity for gas equipment and engineering services companies to contribute in development of city gas distribution networks, compressed gas stations for supplying CNG, booster stations, equipments, automation, engineering services, construction, etc.Government of India is increasingly encouraging the use of cleaner fuels like CNG and there is an opportunity for companies in Developing CNG related infrastructure, CNG dispensing stations, automata ion and manufacture and CNG kits etc.
Pipelines
Crude and refined product pipeline infrastructure across the country would need to grow as refinery capacities grow. As current planned, crude and refined product pipeline infrastructure would increase by 4’065 km to 15’788 km respectively.As per the Tenth Plan document of Planning Commission, natural gas pipeline investments to the order of US$ 4.6-5.7 billion are expected in the plan period ending. Additional gas now found in the KG basin on the eastern coast is expected to be monetized till 2011, for which additional pipeline investment is expected. This requirement of increase in the pipeline infrastructure in country provides opportunities’ for the international gas (transportation) companies, engineering companies, EPC contractors and vendors of pipeline and equipments,.Planned major investments.Various IGL & Gas projects have been announced by companies in India, which amounts to investments over US$ 80 billion.
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LEARNING’S FROM THE PROJECT:
It was a great opportunity for me to do a project with Indraprastha Gas Limited, which is one of the prestigious companies in India. It was a starting for me to get the knowledge of real corporate world. Today experience and knowledge of things is much more different from theoretical concept. Although the learning’s were numerous in number but I have concluded a few as major ones and they are as follows:
During the tenure of this project I got a great corporate exposure and came closer to working environment.
I earned real marketing and sales experience during this time period. I learnt how to make good relationships with customer, channel partners as well as colleagues. The practical aspects of marketing theories are materialized during the course of this study
During this project I worked on my analytical abilities in practical situations where the customer comes to us with problem and we are suppose to give him/her a suitable solution for that problem.
During this project I experience corporate busy life and urgency of reporting to boss. This life helps me to improve my technical skills.
SKILLS GAINED THROUGHOUT PROJECT
Good Communication
Convincing
Positive attitude
Analytical skill
Better Interaction
Technical skill
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