Compressed Natural Gas (CNG) is rapidly gaining popularity as a cheaper alternative to the ever-expensive fuel types like Petrol or Diesel. People around the world are looking to replace conventional fuels with the cheaper alternatives like CNG that is not only light on the pocket but also scores over petrol and diesel (as the pollution - free fuel) when its negative impact to the environment is realised. Running costs are also significantly lower compared to either of the fossil fuels as a vehicle inherently gives better fuel economy when driven on CNG.

CNG is gaseous fuel and is a mixture of hydrocarbons mainly Methane. It is natural gas compressed to a pressure of 200-250 Kg/cm² to enhance the vehicle on-board storage capacity. Thus, the compressed form of NG is used as a fuel for transportation purposes. 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. Therefore, CNG-driven vehicles tend to be eco-friendly as CNG-powered vehicles emit about 80 percent less carbon monoxide than gasoline-powered vehicles.

Delhi, Mumbai, Ahmedabad and Surat have now developed CNG infrastructure on a fairly large scale. Current daily sales of CNG in India are approx. 3 million Kgs. Delhi has emerged as the only city in the world having entire city Bus Fleet on the single mode fuel of CNG. All Auto Rickshaws in Delhi and Mumbai are running on CNG. At present, there are about 3100 CNG outlets in India, of which 75% are in Delhi, Gujarat and Maharashtra. The central government aims to install 10,000 CNG Pump stations in India by 2030. In India’s west, the State of Gujarat continues to take the lead by calling for applications to establish 300 new Compressed Natural Gas (CNG) fuelling stations.

CNG projects are being implemented all across the country very aggressively. Apart from established PSU Marketing companies like GAIL etc., many other agencies like Indraprastha Gas Limited, GSPC Group Limited, Indo Bright Petroleum Limited, MGNL Pune, The Adani Group, Torrent Gas Private Limited, Nexgen Energia Limited etc. provide Dealership/Franchisee for CNG Stations in India through various models such as Company Owned Company Operated (COCO), Company Owned Dealer Operated (CODO) and Dealer Owned Dealer Operated (DODO). Common Land Criteria for awarding Dealership/Franchisee are as follows;

·         Land located on National or State Highway or Major City Roads

·         Minimum Plot size of approx.1200 Sq. Mtrs ( preferable)

·         Frontage – Minimum 40 Meters

·         Non-Agriculture (Commercial or Industrial plots) with clear title

·         No Trees preferably

·         No overhead power/telephone lines and underground oil/gas pipeline.

·          Electricity and Water availability

·         Availability of access to Road divider / Service lane/ Drainage facility

CNG has emerged as an environment friendly and commercially viable automobile fuel in India due to which Indian mobility is increasingly turning to natural gas. Market demand for CNG Gas is increasing day by day but refuelling takes longer due to a fewer number of CNG stations which makes customers to wait in long queues at some CNG stations. The Indian government wants to make the country environmentally friendly and the number of vehicles supporting eco-friendly vehicles is slowly increasing. Several government initiatives have now started supporting the transition and include a massive infrastructure response that will address current limitations of supply while encouraging increased uptake. That is why eco-friendly vehicles will increase in the coming days and with that, the demand for CNG will continue to grow.

Despite the multiple challenges faced by CNG-NGV program, the increase in awareness among people for CNG and availability of technology at affordable price coupled with adequate distribution stations has given boost to CNG-NGV programs in India. CNG-NGV program is growing at the rate of 40% per annum. More than 12 organizations are involved in the development of CNG infrastructure. As of now, more than 30 Indian cities have adopted CNG-NGV programs. It is anticipated that more number of Tier-I & Tier-II cities will implement these programs in the coming years. This has thrown huge opportunities for the small entrepreneurs who wish to open their own CNG Station.

A Project Report is not only essential for obtaining financial assistance from Bank/ Financial Institution/Funding Agency but also the most important document either to participate in the development schemes of MSME Sector/ Department of Industries or in completing various time consuming government formalities connected with planning and commercial operation of the proposed business project.

This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation and Finally Printing the Report) to be presented as a Ready Project Proposal immediately thereby saving precious time of the promoter in the process of completing requisite formalities in anticipation of setting up the business project. Accordingly, following Project Templates has been deliberately left blank in order to facilitate customisation by the perspective entrepreneurs based on personal requirements and furnish necessary information on actual basis.

§ Project at a Glance                                    :             To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/ Special Category)].

§ General Information and Location          :             To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and Occupancy under Ownership/Lease Agreement].

§ Promoter’s Background                            :             To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and Special Training Attended, if Any].

The Project Report/ Business Plan so presented include all the important aspects containing the following details;

1. Highlights of the Project
2. Project Introduction
3. The Project Proposal
4. The Products
5. Prospect for Investment
6. Potential Target Customers/Market
7. Marketing Plan
8. Critical Success Factors
9. Process Details and Technical Aspects
10. Installed and Operational Capacity
11. Quality and Standards
12. Raw Materials and Consumables
13. Power and Utility
14. Tentative Implementation Schedule
15. Basis & Presumptions
16. Capital Investment Estimates with Detail Project Economics
17. Computation of Working Capital Requirement
18. Estimated Total Project Investment
19. Proposed Means of Project Financing
20. Estimated Annual Sales Turnover
21. Projected Profitability Statement
22. Calculation of Interest Amount
23. Depreciation Schedule
24. Term Loan Repayment Schedule
25. Debt Service Coverage Ratio
26. Break-Even Analysis
27. Projected Cash Flow Statement
28. Projected Balance Sheet
29. Internal Rate Return
30. Pay Back Period

The presentation also supplements with important facts and useful information covering the areas as indicated below;

1. Statutory Permits and Business Licenses Required for CNG Station Business
2. Important Steps to Start CNG Station Business
3. Smart Tips to Follow in CNG Station Business.

LIST OF ENCLOSURES

ENCLOSURE-1: BRIEF ABOUT PSB LOANS IN 59 MINUTES SCHEME.

ENCLOSURE-2: FAQ ON PSB LOANS IN 59 MINUTES SCHEME.

Thus the information provided would help in identifying in advance the infrastructure/resources required for the Project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an entrepreneur.