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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).

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.

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:

  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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. CBG Plant Capacity:

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

 

  1. 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.

 

  1. 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/SK8HtqUY1ZGfBG6J8

 

Thanks.

86838-98080, 90171-51780

KIP Financial Consultancy Pvt. Ltd.

DSB – 38, KIP Complex, Red Square Market, Hisar – 125001 (HR)

 

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