CNG V/S PETROL VEHCILES IN DELHI: A SURVEY OF USERS ON BEHALF OF INDRAPRASTHA GAS LIMITED

Dissertation Submitted to Institute 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 P.R Rajesh Head, Dept. of Human Resources Indraprastaha Gas Ltd.

Institution Guide Dr.B.S.Patil Director I.T.M Bangalore

INSTITUTE FOR TECHNOLOGY AND MANAGEMENT BANGALORE-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 Iqbal ITM - Bangalore Project Trainee Indraprastha Gas Limited

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INSTITUTE FOR TECHNOLOGY AND MANAGEMENT BANGALORE 560083

CERTIFICATE

This is to certify that Mr./Mswith 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 Dr. B. S. Patil

Signature of Director 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 cant 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 their constant support and help.

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TABLE OF CONTENTS: Serial No. I. II. CONTENTS EXECUTIVE SUMMARY INTRODUCTION y Company Profile y Company History y Company Bankers/ Auditors y Company Board of Directors y Company Business y Company Background y Sourcing of Gas: GAIL the sole supplier y IGLs source pipeline structure y CNG y PNG ANALYSIS OF CNG SALES,STATIONS & PRICE y CNG sales y Type of CNG stations y CNG supply infrastructure y Robust demand for CNG in Delhi and Ncr y CNG price hike in Delhi PROJECT DEFINITION y Research Design y Research Methodology y Scope of the Project y Sampling Element y Sampling Unit y Sample Size y Source of Information y Research Method for collecting data y Sampling Technique y Sampling Tool for collection information y Questionnaire Type DATA ANALYSIS y Simple Tabulation y Cross Tabulation RESULT OF STUDY y Barriers y Limitations of study
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Page No. 7-8

9-22

III.

23-31

IV.

32-59

V.

60-62

Conclusions and recommendations

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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
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81-83

Learning from the project Skills gained through the project

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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 Nonbuyers of CNG.

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CHAPTER 2 INTRODUCTION

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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

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

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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 its customers in the domestic and commercial sectors. To provide a cleaner, environment-friendly alternative as auto fuel to Delhis 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 Outlook IGL 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 Governments 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.

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COMPANY BANKERS / AUDITORS Bankers Canara Bank Jeevan Bharti Building, Tower II Parliament Street New Delhi 110001 IDBI Bank Limited 1/6 Siri Fort Institutional Area Khel Gaon Marg New Delhi 110049 ICICI Bank Limited Corporate & Institutional Banking Division 9A, Phelps Building Connaught Place New Delhi - 110001 State Bank of India Corporate Accounts Group Branch 11th Floor, Jawahar Vyapar Bhawan 1, Tolstoy Marg New Delhi - 110001

The Hongkong and Shanghai Banking Corporation Limited Birla House, 25 Barakhamba Road New Delhi -110001 Auditors Deloitte Haskins & Sells Chartered Accountants MCT House, One Okhla Centre Block 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 Director

Mr. Manmohan Singh, Director (Commercial)

Mr. S S Rao, Director

Mr. R K Verma, Director

Prof. V Ranganathan, Director

Mr. S S Dalal, Director

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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.
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Uninterrupted supply The 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 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. Safety The 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

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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. Billing The 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 hasnt 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 users doorstep. List of collection centers/drop boxes Customer support Round-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 fuel Natural 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 friendly Natural 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 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 liasioning The 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 pilferage In 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.

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Billing - No up-front payment The 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 hasnt 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 users doorstep. Lower maintenance cost With 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/cm 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'. Presented below is an outline of the benefits that CNG offers
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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.

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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

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15%, it will not burn. This high ignition temperature and limited flammability range makes accidental ignition or combustion very unlikely. Properties Relative density Relative density Auto-ignition Temperature Flammability Range Flame Temperature Octane Number Degree C % in Air Degree C 360 1-8 2,030 87 280 0.6-5.5 1,780 374 2.2-9.0 1,983 93 540 5-15 1,900 127 Unit Water = 1 Air =1 Petrol 0.74 Diesel 0.84 LPG 0.55 1.285 CNG 0.64

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

DOMESTIC

INDUSTRIAL/ COMMERCIAL

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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 IGL IGL IGI IGI

REGION NCT OF DELHI NOIDA, GREATER NOIDA FERIDABAD GURGAON

CONTRACTED (MMSCMD) 2.0 0.2 0.25 0.25

SUPPLY

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 RIL BPCL REGION CONTRACTED (MMSCMD) 0.15 0.24 SUPPLY

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.

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IGLS GAS SOURCE PIPELINE STRUCTURE

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)

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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. No maintenance issues Theres 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
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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. 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 Honble Supreme Court in July 1998, which directed conversation of the citys 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 COST OF KIT (Rs) (A) CNG PRICE PER Kg(Rs) MILEAGE PAR Kg(Rs) COST PER km(Rs) (a) OTHER FUEL PRICE (BUS-DIESEL, 4-3 WHEELER- PETROL) (Rs/liter) MILEAGE OTHER FUEL COST PER km (Rs) (b) SAVING PER km(Rs) (c=b-a) DAILY AVERAGE TRAVEL (km) YEARLY TRAVEL ASSUMING 300 DAYS OF TRAVEL (km) (d) YEARLY SAVING (Rs) (e=c*d) PAYBACK PERIOD (Months) (f=a/e) BREAKEVEN (in km) (g=a/c) 180,000 29.03 3.1 9.36 37.75 4 WHEELER 30,000 29.03 14 2.07 63.39 3 WHEELER 20,000 29.03 32 0.91 63.39

2.8 13.48

11 5.76

25 2.54

4.12 80 24,000

3.69 50 15,000

1.63 60 18,000

98,880 21.8 43,689

55,350 6.5 8,130

29,340 8.1 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 31 st 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:-46 Daughter Station:-2 Total:-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:
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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 companys ability to raise debt for future expansion.

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Opportunities:
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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 companys 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.

Cost (petrol=Rs per liter, CNG =Rs per Kg Mileage (per km) Cost per km Saving percentage

PETROL 63.39

DIESEL 37.75

CNG 29.30

11 5.76 63.71%

11 3.43 39.06%

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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 March-10 June-10 Oct-10 Jan-11 May-11

Old price 21.20 21.90 27.50 27.75 29.00

New price 21.90 27.50 27.75 29.00 29.30

Reason Due to rise in input costs Increase in APM prices from $1.79 to $ 4.2 MMBTU In light of exchange volatility To pass on the incremental price of high cost R-LNG 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:
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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 CENTRAL DELHI CENTRAL DELHI ROHINI SECTOR 19 SHANTIPATH FOR CNG CARS SURVEY SAVITA FILLING STATION, SARAI KALE KHAN FOR PETROL CARS SURVEY 12 R.K.PURAM SECTOR 12 PATPARGUNJ DWARAKA SECTOR 9

SOUTH DELHI EAST DELHI WEST DELHI Sample Size

ZONES NORTH DELHI CENTRAL DELHI SOUTH DELHI EAST DELHI WEST DELHI TOTAL OVERALL

CNG PRIVATE CARS 23 20 20 21 11 95

PETROL/DIESEL CARS 20 20 20 20 19 99 199

PRIVATE

Source of Information Primary Data/ Communication Approach

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Research Method for Collecting Data Survey Method Sampling Technique Simple 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

Number of years of usage

0 to years

to years to years to years years

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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in t lled C G kit

Bought lready exi ting C G fitted car

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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Buyer

fC G

2. Are the buyers and non- buyers of CNG concerned about the pollution?
Buyers of N e o fr e d

ess

ost effe t ve ess ess a d ost effe t ve ess

e ofr e d

e ofr e d y ess, ost effe t ve ess,warre ty t at was g ve o e ofr e d e ofr e d ess, osteffe t ve

ess,warre ty t at was prov ded by t e ar ompa y ow ad a N so I too pur ased

ess, ost effe t v ess, every body I

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.

38 | P a g e

              

 
N t

     

             

               

    

Non-Buyers of CNG

no yes

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.

Buyer of NG(M eage)

redu ed sa e reased

39 | P a g e

No Bu e s of N (

e e)

edu es s e e ses incre sed

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% doesnt have any idea about mileage

Buy rs of CNG (P ck up)

r duced same ncreased

40 | P a g e

Non-Buyers of NG(P c up)

$ #
ty)

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% doesnt have any idea about pick up

sa e

ncreases

41 | P a g e

)()0 )(

Buyers of NG (re a

reduces

&&

no co

"

reduces ncreases ent

'

Non-Buyers of Ng(re ab ty)

no comment

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 % doesnt have any idea about reliability of their car.

Buyers of NG (Ma nta nance cost)

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4 4 55 5

reduces same ncreases

reduced same ncreased

Non-buyers of NG(Maintenance cost

reduces same increasis no comments

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% doesnt have any idea about maintenance cost.

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4. Problems with CNG car

Buyers of NG ( rob e s)

frequent y e porar y never

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

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EF

ED

B CC B

Buyers of NG (f
A

ng NG)

da y a ternate days wee y any ot er

8@ 8

Among the CNG car owner,52% say that they fill CNG alternate days while 44% fill CNG daily 6. Availability of CNG stations

Buyers of NG ( NG Station)

good average satisfactory

Non-buyers of NG ( NG station)

ess average more

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

45 | P a g e

7. Average waiting time

Buyers of NG (Waiting time and other parameters)

ati n u t mer rend Si e tead di pen ing pre ure at the put et ur pre eren e ati n e waiting time

ati n u t mer riend behavi r e waiting time tead di pen ing pre ure at the ut et ati n tead di pen ing pre ure ati n e waiting time tead di pen ing pre ure

46 | P a g e

Non-Buyers of NG (Wa t ng t

e)

g ed u o no dea

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

Buye

of CNG (Paymen )

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P S R Q Q P I I P
poo ave age good

T T

Non-buyers of NG ( ayment)
V X UU
poor average good exce ent not ng l e t at no dea

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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V W

9. Facilities (Like air filling facility, toilet, drinking water) at a CNG station

Buye of C

(faciliie )

ave age good

Among the CNG owners, 42% feel that the facilities provided at a CNG station are average.

10. Safety in CNG cars

Buyers of CNG (safety)

poor average good

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Y Y

poo

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% doesnt have any idea. 11. Awareness

Non-b

ers of CNG (CNG is che

er)

es

no

Among the PETROL car owners, 99% care aware that CNG is about 62% cheaper than PETROL and about 40% cheaper than DIESEL.

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Non-buyers of NG (aut orised it suppliers)

yes no

Among the PETROL car owners, 53% are not aware of authorized CNG kit suppliers.

Non- uyers of CNG(car on CNG& DIE EL oth)

yes no

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.

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12. CNG as a low quality fuel

Non-bu ers o

NG ( NG s low qu lit

uel)

Among the PETROL car owner, 61% consider CNG as a low quality fuel.

13. Conversion costs

Non- Buyers of CNG (conversion costs)

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ediu high low

ab

a c

es no no ide m be

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?

No BUyer of N (Vi it to N

t tio )

yes o

Among the PETROL car owners 60% have visited a CNG station while 40% have not even visited

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15. Travelling outside the city

Non-buyers of NG (travelling outside t e city)

yes no

Among the PETROL car owners, 46% travel outside the city so they dont own a CNG car.

16. CNG kit installation is a time consuming process?

Non-buyers of NG (ti e consu ing)

yes no no idea

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Among the PETROL car owners, 33 % feel that CNG kit installation is a time consuming process.

17. Engine disruption

Non-buyers of (disrupt t e engine)

yes no no idea

Among the PETROL car owners 54% feel that CNG kit installation will disrupt the engine 18. PETROL acts as lubricant

Non-buyers of NG ( NG is dry)

yes no no idea

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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

Buyers of NG (future car)

on NG on petrol/Diesel Auto G

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.

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gf

Non-Bu ers of NG (new ar

yes no ay be

Among PETROL car owners, 47% say that they will buy a new car on CNG while 17% say may be.

Non-buyers of NG (preferred NG car)

aruti toyota tata yundai no idea N/A none

Among PETROL car owners, 24% want to buy Maruti models on CNG

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Buyers of CNG (new CNG models)

yes no

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 costs Dependent 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 Disruption Dependent 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. 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 dont want to convert their car to CNG 4. People who cant 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 SALES Station Name(Delhi) ANAND PARBAT BRAB SQUARE CBD SHAHADRA CGO COMPLEX CHHATRASAL STADIUM CRRI,MATHURA ROAD DHEERPURA-1 DHEERPURA-11 DILSHAD GARDEN DWARKA DWARKA SEC 17 DWARKA SEC 23 DWARKA SECTOR XX GEETA COLONY IFC GHAZIPUR -3 IFC GHAZIPUR SITE 1 IFC GHAZIPUR SITE 2 IGI AIRPORT JAHANGRI PURI JAIL ROAD JANAKPURI D BLOCK JANAKPURI DIST CNTR JASOLA KAPASHRERA LADO SARAI LONI ROAD MADAN PUR KHADAR -1 MADAN PUR KHADAR -11 MAHIPALPUR MANGOLPURI MAYAPURI MAYUR VIHAR METCALFE HOUSE NAGLA MACHI NANAK PYAU

Sales 2,03,891.06 4,80,277.26 1,428,20.70 8,47,140.47 3,98,328.56 5,66,472.46 3,52,287.55 2,57,251.14 5,04,688.68 3,54,056.60 5,78,903.83 2,60,009.21 5,56,120.66 1,88,867.32 6,21,345.55 4,71,590.24 4,99,237.65 83,436.43 2,18,221.90 10,73,639.35 5,21,708.17 5,77,377.06 4,09,445.85 3,93,148.56 4,23,288.93 83,549.35 2,91,178.12 2,24,623.38 6,08,639.85 3,89,662.02 3,06,545.73 5,34,130.15 7,65,421.68 0 4,51,899.76

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NAND NAGARI NARELA NARELA DS11DC NEHRU PLACE NELSON MANDELA NH-24 NH-8 DEFENCE NH-8,RANGPURI OKHLA IND. AREA-1 OKHLA MORE PASCHIM VIHAR PATPARGANJ MEGA PEERAGARHI PITAM PURA PITAMPURA (RANI BAGH) PRAGATI MAIDAN PUNJABI BAGH PUSHPA BHAWAN R K PURAM SEC 111 R K PURAM SEC X R K PURAM SEC X11 ROHINI SEC 21 ROHINI SEC 22- AGGRASEN COLL. ROHINI SEC 22-C.C (Mgf Mall) ROHINI SEC 25 ROHINI SEC 29 ROHINI SEC X1X ROHINI SECTOR 10 ROHTAK ROAD S G T NGR-1 S G T NGR-11 SAN MARTIN SARAI KALE KHAN-1 SARAI KALE KHAN-11 SARITA VIHAR SAROJINI NAGAR SHAKURBASTI DIESEL SHED,NR SHAKURPUR SHAKURPUR 2 SHANTIPATH SURAJ KUND
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2,77,542.04 3,41,239.03 4,69,553.01 3,79,694.58 4,36,770.74 3,29,682.68 3,79,184.00 3,535.13 3,535.13 3,12,532.09 3,62,176.20 6,28,56.87 6,47,454.84 4,17,017.06 4,86,056.18 5,83,125.78 4,21,550.00 2,64,206.82 6,20739.60 5,10,445.25 6,22,579.94 3,54,186.87 3,04,538.88 56,330.60 3,52,548.77 1,65,526.62 3,56,690.00 5,47,158.06 3,39,985.24 3,83,552.57 3,50,553.58 0 3,51,131.27 5,67,670.80 5,06,377.91 3,53,007.65 0 4,36,673.05 2,31,144.22 2,13,144.22 57,397.35

UDYAN MARG

2,61,144.26

FEB MONTH SALES Station Name(Delhi) ANAND PARBAT BRAB SQUARE CBD SHAHADRA CGO COMPLEX CHHATRASAL STADIUM CRRI,MATHURA ROAD DHEERPURA-1 DHEERPURA-11 DILSHAD GARDEN DWARKA DWARKA SEC 17 DWARKA SEC 23 DWARKA SECTOR XX GEETA COLONY IFC GHAZIPUR -3 IFC GHAZIPUR SITE 1 IFC GHAZIPUR SITE 2 IGI AIRPORT JAHANGRI PURI JAIL ROAD JANAKPURI D BLOCK JANAKPURI DIST CNTR JASOLA KAPASHRERA LADO SARAI LONI ROAD MADAN PUR KHADAR -1 MADAN PUR KHADAR -11 MAHIPALPUR MANGOLPURI MAYAPURI MAYUR VIHAR METCALFE HOUSE

Sales 2,01,600.06 4,64,607.26 1,29,738.92 8,45,069.10 4,04,536.56 5,42,585.88 3,45,608.10 2,54,936.42 5,52,679.65 3,58,929.81 5,27,179.19 2,63,403.87 5,45,773.82 1,55,941.64 6,01,730.00 4,17,782.71 4,41,979.62 72,765.63 2,01,171.40 10,42,563.41 4,86,601.22 5,24,492.26 4,19,665.28 3,70,552.18 4,07,518.03 93,435.35 2,98,195.01 2,17,941.23 5,88,411.90 3,89,662.02 3,00,991.07 4,95,985.31 6,52,070.11

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NAGLA MACHI NANAK PYAU NAND NAGARI NARELA NARELA DS11DC NEHRU PLACE NELSON MANDELA NH-24 NH-8 DEFENCE NH-8,RANGPURI OKHLA IND. AREA-1 OKHLA MORE PASCHIM VIHAR PATPARGANJ MEGA PEERAGARHI PITAM PURA PITAMPURA (RANI BAGH) PRAGATI MAIDAN PUNJABI BAGH PUSHPA BHAWAN R K PURAM SEC 111 R K PURAM SEC X R K PURAM SEC X11 ROHINI MEGA ROHINI SEC 21 ROHINI SEC 22- AGGRASEN COLL. ROHINI SEC 22-C.C (Mgf Mall) ROHINI SEC 25 ROHINI SEC 29 ROHINI SEC X1X ROHINI SECTOR 10 ROHTAK ROAD S G T NGR-1 S G T NGR-11 SAN MARTIN SARAI KALE KHAN-1 SARAI KALE KHAN-11 SARITA VIHAR SAROJINI NAGAR SHAKURBASTI DIESEL SHED,NR SHAKURPUR
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0 4,53,592.02 2,38,234.49 3,38,030.02 4,30,518.66 3,60,895.35 4,38,099.51 3,16,842.52 3,70,196.69 3,100.32 3,20,918.36 3,30,416.44 3,47,538.29 7,38,140.07 6,04,505.52 3,97,544.25 4,80,725.12 5,84,277.86 3,90,961.62 3,07,589.31 5,97,241.86 5,15,419.83 5,66,747.15 4,15,374.81 2,98,053.14 2,57,847.66 1,52,109.52 3,54,109.93 1,70,578.11 3,38,488.07 5,51,552.77 3,44,320.44 3,91,300.59 3,22,709.1 0 3,63,163.02 5,51,203.53 5,19,072.69 3,63,228.50 582.5 3,93,363.58

SHAKURPUR 2 SHANTIPATH SURAJ KUND UDYAN MARG

2,26,172.81 2,40,995.28 66,637.65 2,84,681.37

MARCH SALES Station Name(Delhi) ANAND PARBAT BRAB SQUARE CBD SHAHADRA CGO COMPLEX CHHATRASAL STADIUM CRRI,MATHURA ROAD DHEERPURA-1 DHEERPURA-11 DILSHAD GARDEN DWARKA DWARKA SEC 17 DWARKA SEC 23 DWARKA SECTOR XX GEETA COLONY IFC GHAZIPUR -3 IFC GHAZIPUR SITE 1 IFC GHAZIPUR SITE 2 IGI AIRPORT JAHANGRI PURI JAIL ROAD JANAKPURI D BLOCK JANAKPURI DIST CNTR JASOLA KAPASHRERA LADO SARAI LONI ROAD MADAN PUR KHADAR -1 MADAN PUR KHADAR -11 MAHIPALPUR

Sales 1,99,952.06 4,51,331.06 1,37,431.97 8,85,974.38 3,73,498.28 4,72,237.24 3,50,248.30 2,17,607.46 6,10,571.64 3,48,194.34 4,93,402.26 2,33,695.87 5,21,532.41 1,75,386.93 6,45,841.96 3,89,170.83 4,81,417.61 88,375.77 2,09,532.70 10,33,002.43 4,27,375.36 5,16,849.33 4,30,030.21 3,81,638.99 4,22,728.99 1,10,002.90 2,84,062.18 2,27,353.75 5,57,670.06

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MANGOLPURI MAYAPURI MAYUR VIHAR METCALFE HOUSE NAGLA MACHI NANAK PYAU NAND NAGARI NARELA NARELA DS11DC NEHRU PLACE NELSON MANDELA NH-24 NH-8 DEFENCE NH-8,RANGPURI OKHLA IND. AREA-1 OKHLA MORE PASCHIM VIHAR PATPARGANJ MEGA PEERAGARHI PITAM PURA PITAMPURA (RANI BAGH) PRAGATI MAIDAN PUNJABI BAGH PUSHPA BHAWAN R K PURAM SEC 111 R K PURAM SEC X R K PURAM SEC X11 ROHINI MEGA ROHINI SEC 21 ROHINI SEC 22- AGGRASEN COLL. ROHINI SEC 22-C.C (Mgf Mall) ROHINI SEC 25 ROHINI SEC 29 ROHINI SEC X1X ROHINI SECTOR 10 ROHTAK ROAD S G T NGR-1 S G T NGR-11 SAN MARTIN SARAI KALE KHAN-1 SARAI KALE KHAN-11

3,77,253.11 2,93,414.05 5,11,653.32 7,19,935.97 0 4,46,058.56 2,61,568.39 3,38,030.02 4,14,564.64 3,70,037.84 4,10,142.20 3,27,897.79 3,74,086.26 3,023.77 3,25,122.39 3,29,248.09 3,42,063.65 8,00,816.00 5,65,641.76 4,09,715.32 4,99,494.95 5,72,428.33 4,18,937.58 3,25,822.65 5,53,724.27 5,14,520.10 5,23,409.49 3,73,042.24 2,66,369.51 2,22,292.56 1,95,299.09 3,50,079.05 1,31,696.94 3,48,217.86 5,27,205.04 3,39,468.48 3,50,547.39 2,89,149.38 0 3,61,261.71 5,37,921.75

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SARITA VIHAR SAROJINI NAGAR SHAKURBASTI DIESEL SHED,NR SHAKURPUR SHAKURPUR 2 SHANTIPATH SURAJ KUND UDYAN MARG

5,25,227.80 3,62,678.29 0 3,61,992.00 2,27,180.94 2,46,675.82 68,144.83 2,63,394.74

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APPENDIX -2

ALL CNG STATIONS DETAILS BPCL BPCL GHAZIABAD IOCL IOCL NOIDA HPCL HPCL NOIDA IOCL-IBP TOTAL OMC PARTY DTC DTC NOIDA UPSRTC TOTAL DTC 35 2 23 2 26 2 8 98 32 1 1 34 JP INTERNATIONAL IILM ACADEMY ORIENT TRANSPORT,NOIDA STEP BY STEP SHRIRAM MILLENNIUM SITA ENRAGY 149 83 BHAGWATI S S HP CENTER 62 PADAM PETROLEUM TYAGI BROTHERS FILLING STATION MOHAN NAGAR SERVICE CENTER SHARMA FILLING STATION

NOIDA CREDIT PARTY

TOTAL CREDIT PARTY IGI STATION

SL NO 1 2 3 4 5 6 7

LADO SARAI DTC DTC DTC DTC IGL IGL IGL

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER

S N DEPOT VASANT VIHAR DEPOT AMBEDKAR NAGAR DTC KALKAJI DEPOT R K PURAM SEC X R K PURAM SEC III SAROJANI NAGAR

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8 9 10 11 12 13 14 15 16 17 18 19 20 SL NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SL NO 1 2

IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL SARAI KALE KHAN DTC DTC DTC DTC UPSRTC DTC IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL CBD DTC DTC

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER

NH 8 RANGPURI MAHIPALPUR NELSON MENDELA NH 8 DEFENCE LADO SARAI PUSHPA BHAWAN SHANTHI PATH SAN MARTIN IGI AIRPORT R K PURAM SEC XII NEHRU PLACE OKHLA INDUSTRIES AREA PH I SURAJ KUND OKHLA I DEPOT OKHLA II DEPORT I P DEPOT NOIDA DEPOT UPSRTC NAGLAMANCHI NOIDA SEC 53 KASNA (OPP HONDA SIEL) SURAJPUR (OPP DEWOOD MOTERS) PRAGATHI MAIDAN SARAI KALE KHAN I OKHIL MORH CRRI SARITA VIHAR MADANPUR KHADDAR I C G O COMPLEX JASOLA UDYAN MARG MADANPUR KHADDAR II SARAI KALE KHAN II GREATER NOIDA BETA II MELLENIUM PARK 2 MILLENNIUM PARL 1 RAJ GHAT PATPARGANJ DEPOT NAND NAGARI DEPOT

MOTHER MOTHER

71 | P a g e

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 SL NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

DTC DTC DTC IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL DTC DHEERPUR DTC DTC DTC DTC IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL IGL

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER DOUGHTER BOOSTER

E V N DEPOT DILSHAD GARDER DEPOT DILSAD GARDEN PATPARGANJ MEGA I F C GAZIPUR I IFC GAZIPUR II MAYOR NAGARI NAND NAGARI LONI ROAD C B D SHAHADAR NH 24 GAZIPUR GEETHA COLONGY VAISHALI I F C GAZIPUR III SEEMAPURI DEPOT

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER

B B M I DEPOT B B M II DEPOT G T K DEPOT ROHINI II DEPOT DHEERPUR I S G T N PH 1 S G T N PH II NARELA CHHATRASAL STADIUM ROHNI SEC XIX JAHANGIRPURI ROHINI DEPOT METCALFE HOUSE DHEERPUR II ROHINI SEC 10 NARELA DSIIDC NARELA DTC

SL NO 1 2 3 4

SHAKUPUR DTC DTC DTC DTC

MOTHER MOTHER MOTHER MOTHER

WAZIRPUR I DEPOT WAZIRPUR II DEPOT PEERAGARHI DEPOT NANGLOI DEPOT

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5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 SL NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC IGL IGL IGL IGL IGL JAIL ROAD DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC DTC IGL IGL

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER RAILWAYS DAUGHTER BOOSTER

ROHINI III DEPOT NANAK PYAU SHAKURPUR I SHAKURPUR II MANGOLPURI PEERAGARHI ROHTAK ROAD PITAMPURA ROHINI MEGA SHAKURPUR DIESEL SHED ANAND PARBAT NEW PITAM PURA ROHINI 21 ROHINI 2 5 ROHINI 29 ROHINI 22 ROHINI 22 MGF

MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER MOTHER

MAYAPURI DEPOT HARI NAGAR I DEPOT HARI NAGAR II DEPOT KESHAVPUR DTC PUNJABI BAGH JAIL ROAD JANAKPURI D BLOCK PASCHIM VIHAR JANAKPURI D C DWARKA SEC XX KAPASHERA MAYAPURI BRAR SQUARE DWARKA SEC IX DWARKA DTC SEC 08 DWARKA DTC SEC 02 DWARKA SEC 23 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 3 4 5 6 VEHICLE PERFORMANCE Mileage Pick Up Reliability Overall Maintenance cost

Reduced Reduced Reduced Reduced

Same Same Same Same

Increased Increased Increased increased

7. You face problems with CNG car a. Frequently 8. You fill CNG a. Daily 9. Availability of CNG stations a. Good b.Average c.Satisfactory b. Alternate days c. Weekly d. monthly b.Temporary c.Never

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 Yes/No

15. Do you feel that more CNG car models need to be made available?

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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? 25. Cost of converting your car to CNG car are a. High b. Medium c.More Yes/No Yes/No

26. Have you visited any CNG station?

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 dont 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. dont 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. dont know Yes/No Yes/No

31. Are you aware of authorized CNG kit suppliers?

32. you feel that CNG kit installation in your car is a time consuming process?

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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 dont feel anything below leave the question unanswered)

VEHICLE PERFORMANCE 13 Mileage 14 15 16 Pick Up Reliability Overall Maintenance Cost Reduces Reduces Reduces Same Same Same Increases Increases Increases 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? 20. Will you use a CNG car in future? Yes/No Yes/No

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21. Preferred CNG car (If u like Hyundai tick mark on Santro/Accent) Maruti Models Alto Eeco SX4 Wagon R Zen Estilo Fiat Models Punto Toyota Models In nova Corolla Corolla Altis Mahindra Models Logan Chevrolet Models Spark Beat Tata Models Indigo GLS Indica Hyundai Models Accent Santro

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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 IGLs 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 crosscountry 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 4065 km to 15788 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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LEARNINGS 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 learnings 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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