Compress Bio Gas (A Big Business Opportunity)

HPCL/BPCL/IOCL has invited Expression of Interest (EoI) for Supply of Compress Bio Gas (CBG) under SATAT (Sustainable Alternative Towards Affordable Transportation) Scheme. Last Date- 1-03- 2023

Hello Investor/Businessman,

As you know that the demand of Natural Gas is going on increased day by day due to pricing of Petrol and Diesel. In such scenario, Bio Gas Business has become more lucrative.

HPCL/BPCL/IOCL (All Central Public Sector Enterprises) are the largest Oil Marketing Company (OMCs) in India. All these Three Companies are engaged in distribution of CBG generated CNG (Compressed Natural Gas) at their Retail Outlets across the country.

In order to meet out the objective of The National Policy on Bio-Fuels, 2018 issued by the Ministry of Petroleum and Natural Gas of Govt. of India, HPCL/BPCL/IOCL has invited Expression of Interest (EoI) from the person who are interested to do the business of production of Compress Bio Gas.

Key Points of this EoI are as:

1. Who Can Apply:

Any person who is running any CBG Plants or intended to set up CBG Plants in India can apply for this. Applicant may be:

• An Individual Entrepreneurs (Minimum 21 Years of Age)
• Sole Proprietorships
• Partnerships / Limited Liability Partnerships
• Company
• Cooperative Societies / Technology Providers.

2. EoI Cost and Validity:

There is no any fees payable for submission of Expression of Interest.

Further EoI shall be release as on month basis. A schedule of release of EoI as on Month basis has been framed up to 1st November 2022.

Evaluation of EoI application shall be made as on Monthly Basis.

3. Submission of EoI:

EoI shall be submitted on line before the due date and time. No Physical EoI shall be accepted.

Applicant can apply only to a specific CGD Company for a particular plant. If EoIs are submitted more than one CGD Company for the same plant then such EoI shall be rejected by all CGD Company.

If applicant is interested to set up more then one CBG Plant then for each plant, a Separate EoI need to be submitted.

4. Evaluation of EoI:

EoI shall be evaluated on the basis of details submitted by Applicant. No further investigation or physical examination of Applicant shall be made by Company. Based on evaluation, Company shall reject or issue LOI.

Evaluation of the EOIs shall be carried out of a total of 100 marks allocated as per the Qualification criteria such as Past Experience, Turnover of the Firm, Project specific Experience, Technical Competency and Tie-up etc. The prospective APPLICANT has to score minimum of 35 marks to qualify.

5. Issuance of LOI (Letter of Intent):

After selection, as per the evaluation process, Applicant has to submit LOI Acceptance along with Signed Commercial Agreement to Company with in 3 months of LOI Date. Company reserve the right to extend the time limit of 3 Months.

Further Applicant need to submit a Bank Guarantee (BG) of Rs. 1.00 lacs with in one month of Acceptance of LOI if he is having existing Bio Gas Plant. In case, Applicant is new in this business then he has to submit BG of Rs. 5.00 Lacs.

6. Reconstitution of the Firm:

Here important point is that Applicant can go for any proposed reconstitution of firm after receiving the LOI with prior permission of Company. This clause give a flexibility to Applicant  for making any required changes in the firm as per the need of investment.

7. Assured Long Term Pricing of CBG:

Minimum Procurement Price of CBG shall be Rs. 46.00/kg. Tax as applicable shall be paid extra. Applicant need to supply the CBG to the Company retail outlet without any additional transportation cost.

However if distance between Plant and Delivery point is more than 25 Kms but less than 50 Kms, in that case company may considered for additional transportation cost on case to case basis.
The Terms of Commercial agreement shall be 15 Years with extendable clause with mutual consent.
To facilitate the businessman, it has been decided that CBG Price shall be indexed to the prevalent Retail Selling Price of CNG in the Market. Accordingly CBG Procurement price may be From Rs. 54.00/kg to 74.29/kg.

8. CBG Plant Capacity:

The Minimum Designed Capacity of a single CBG Plant shall be 2.00 Tons Production of Compress Bio Gas Per Day.

9. Priority Sector lending:

As per RBI guidelines, Loans for set up CBG Plant shall be finance under priority sector. It will assists to the Applicant for better credit facility from Bank.

10. MNRE Subsidy:

Ministry of New and Renewable Energy provides capital subsidy for Compressed Biogas (CBG) projects. Capital Subsidy will be as:

1. Biogas generation  :  Rs 1.0 crore per 12000cum/day
2. BioCNG generation (including setting of Biogas plant) : Rs 4.0 Crore per 4800Kg/day

Maximum subsidy will be Rs.10 crore per project.

So if you are interested to grab this opportunity then don’t delay. To know more about EoI submission, Submit your response at:

https://forms.gle/4WTUzWZxFc9oEEvC8

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