Compress Bio Gas (A Big Business Opportunity)
GAIL (India) Limited and It’s City Gas Distribution Company (CGD) has invited Expression of Interest (EoI) for Supply of Compress Bio Gas (CBG).
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.
GAIL (INDIA) LIMITED is the largest Natural Gas Transmission and Marketing Company in India. GAIL and its Subsidiaries/JVs are engaged in development of City Gas Distribution (CGD) business to supply Gas to various sectors i.e. Compressed Natural Gas (CNG) for transport sector and Piped Natural Gas (PNG) for domestic, commercial and industrial sector in various cities of India.
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, GAIL and it’s Allied Company 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:
- 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
- Cooperative Societies / Technology Providers.
- EoI Cost and Validity:
There is no any fees payable for submission of Expression of Interest.
Further EoI shall be opened till 31st Dec. 2021. Evaluation of EoI application shall be made as on Monthly Basis.
- Submission of EoI:
EoI shall be submitted on line before the due date and time. No Physical EoI shall be accepted.
There are total 15 City Gas Distribution (CGD) Companies are seeking EoI from the Applicant.
|List of Geographical Areas (GA) for which EOI is invited|
|S No.||Name of GA||State||Name of CGD Company|
|1||1||Kakinada||Andhra Pradesh||Bhagyanagar Gas Limited|
|2||2||Vijaywada||Andhra Pradesh||Bhagyanagar Gas Limited|
|3||3||East Godavari District (excluding area already authorized)||Andhra Pradesh||Godavari Gas Private Limited|
|4||4||West Godavari District||Andhra Pradesh||Godavari Gas Private Limited|
|5||1||Cachar, Hailakandi & Karimganj Districts||Assam||Purba Bharati Gas Private Limited|
|6||2||Kamrup & Kamrup Metropolitan Districts||Assam||Purba Bharati Gas Private Limited|
|7||1||Patna District||Bihar||GAIL (India) Limited|
|8||1||North Goa District||Goa||Goa Natural Gas Private Limited|
|9||1||Vadodara||Gujarat||Vadodara Gas Limited|
|10||1||Sonipat (part) District||Haryana||GAIL Gas Limited|
|11||1||East Singhbhum District||Jharkhand||GAIL (India) Limited|
|12||2||Ranchi District||Jharkhand||GAIL (India) Limited|
|13||3||Giridih & Dhanbad Districts||Jharkhand||GAIL Gas Limited|
|14||4||Seraikela-Kharsawan District||Jharkhand||GAIL Gas Limited|
|15||5||West Singhbhum District||Jharkhand||GAIL Gas Limited|
|16||1||Ramanagara District||Karnataka||Maharashtra Natural Gas Limited|
|17||2||Bengaluru Rural and Urban Districts||Karnataka||GAIL Gas Limited|
|18||3||Dakshina Kannada District||Karnataka||GAIL Gas Limited|
|19||1||Indore (including Ujjain City) (part) District||Madhya Pradesh||Aavantika Gas Limited|
|20||2||Gwalior (part) District||Madhya Pradesh||Aavantika Gas Limited|
|21||3||Dewas (part) District||Madhya Pradesh||GAIL Gas Limited|
|22||4||Raisen, Shajapur and Sehore Districts||Madhya Pradesh||GAIL Gas Limited|
|23||5||Gwalior and Sheopur District||Madhya Pradesh||Rajasthan State Gas Limited|
|24||1||Sindhudurg District||Maharashtra||Maharashtra Natural Gas Limited|
|25||2||Pune City including Pimpri‐ Chiechwad & adjoining contiguous areas Hinjewadi, Chakan, Talegaon||Maharashtra||Mahrashtra Natural Gas Limited|
|26||3||Raigarh District (excluding areas already authorized)||Maharashtra||Mahanagar Gas Limited|
|27||4||Mumbai & Greater Mumbai||Maharashtra||Mahanagar Gas Limited|
|28||5||Thane Urban and adjoining municipalities||Maharashtra||Mahanagar Gas Limited|
|29||6||Valsad (Except areas already authorized), Dhule & Nashik Districts||Maharashtra & Gujarat||Maharashtra Natural Gas Limited|
|30||1||Khordha District||Odisha||GAIL (India) Limited|
|31||2||Cuttack District||Odisha||GAIL (India) Limited|
|32||3||Sundargarh & Jharsuguda Districts||Odisha||GAIL Gas Limited|
|33||4||Ganjam, Nayagarh & Puri Districts||Odisha||GAIL Gas Limited|
|34||1||Kota (part) District||Rajasthan||Rajasthan State Gas Limited|
|35||1||Hyderabad||Telangana||Bhagyanagar Gas Limited|
|36||1||Agartala||Tripura||Tripura Natural Gas Company Limited|
|37||2||Gomati District||Tripura||Tripura Natural Gas Company Limited|
|38||3||West Tripura (Except areas already authorized) District||Tripura||Tripura Natural Gas Company Limited|
|39||1||Varanasi District||Uttar Pradesh||GAIL (India) Limited|
|40||2||Jhansi (part) District||Uttar Pradesh||Central UP Gas Limited|
|41||3||Bareilly (part) District||Uttar Pradesh||Central UP Gas Limited|
|42||4||Kanpur (part) District||Uttar Pradesh||Central UP Gas Limited|
|43||5||Faizabad & Sultanpur Districts||Uttar Pradesh||Green Gas Limited|
|44||6||Unnao (Except areas already authorized) District||Uttar Pradesh||Green Gas Limited|
|45||7||Agra||Uttar Pradesh||Green Gas Limited|
|46||8||Lucknow||Uttar Pradesh||Green Gas Limited|
|47||9||Meerut (part) District||Uttar Pradesh||GAIL Gas Limited|
|48||10||Firozabad (Taj Trapezium Zone)||Uttar Pradesh||GAIL Gas Limited|
|49||11||Mirzapur, Chandauli and Sonbhadra Districts and Sonbhadra Districts||Uttar Pradesh||GAIL Gas Limited|
|50||1||Dehradun District||Uttarakhand||GAIL Gas Limited|
|51||2||Haridwar District||Uttarakhand||Haridwar Natural Gas Private Limited|
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.
- 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.
Applicant need 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.
- 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.
- Assured Long Term Pricing of CBG:
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 then 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.
- CBG Plant Capacity:
The Minimum Designed Capacity of a single CBG Plant shall be 2.00 Tons Production of Compress Bio Gas Per Day.
- 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.
- MNRE Subsidy:
Ministry of New and Renewable Energy provides capital subsidy for Compressed Biogas (CBG) projects. Capital Subsidy will be as:
- Biogas generation : Rs 1.0 crore per 12000cum/day
- 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:
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, KIP Complex, Red Square Market, Hisar – 125001 (HR)